Posts Categorized: General Editorial

Posted by & filed under General Editorial.

Thought for the weekend:

The entire financial world hangs by the LIBOR rate. It better drop Monday morning and stay down or it has all hit the fan.

Jim Sinclair’s Commentary

The question is will you lose your pension? The uncomfortable answer is probably YES.

Check out Bear and Lehman. Don’t forget GE is a major OTC derivative manufacturer within their financial arm.

WaMu employees likely to lose pensions; many to lose jobs
San Francisco Business Times – by Kirsten Grind

Washington Mutual employees are likely to lose their current pensions and they might not find out for another two months whether they have a job, according to a J.P. Morgan Chase executive who spoke to employees from both companies in a frank, hourlong conference call Thursday.

JPMorgan (NYSE: JPM) also plans to rebrand WaMu branches across the country with the JPMorgan Chase name, said Charlie Scharf, head of JPMorgan Chase’s Retail Financial Services group.

WaMu employs about 43,000 employees nationwide – including 3,500 in downtown Seattle – and JPMorgan Chase has about 195,600.

Scharf, who spent a chunk of the conference call answering blunt questions from employees, said employees’ pension plans are part of WaMu’s business that’s held up in Chapter 11 bankruptcy, so it’s not J.P. Morgan’s responsibility to honor them. That likely means employees who are currently accruing money into the plan as well as employees who are already retired might be cut off.

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Jim Sinclair’s Commentary

This is going to stand the world on top of its head financially primarily in oil and gold. It has the capacity of being the one piece of straw that breaks the banking system’s back completely.

This is no longer an if but a when. It looks very close to me, perhaps weeks, not months.

I would say the odds of this happening before the election is now north of 65%.

No denying it: It’s war in Pakistan
The army in engaged in full-scale battles against the Taliban and Al-Qaida. Tens of thousands of civilians have fled, and there is no end in sight.
By JANE PERLEZ and PIR ZUBAIR SHAH , New York Times
Last update: October 2, 2008 – 8:41 PM

PESHAWAR, PAKISTAN — War has come to Pakistan, not just as terrorist bombings, but as full-scale battles, leaving Pakistanis angry and dismayed as the dead, wounded and displaced turn up right on their doorsteps.

An estimated 250,000 people have now fled the gunship helicopters, jets, artillery and mortar fire of the Pakistani Army, and the assaults, intimidation and rough justice of the Taliban fighters who have dug into Pakistan’s tribal areas.

About 20,000 people are so desperate they have flooded over the border from the Bajur tribal area to seek safety in war-torn Afghanistan.

Many others are crowding around the city of Peshawar, in northwest Pakistan, where staff members from the U.N. refugee agency help at nearly a dozen camps.

The International Committee of the Red Cross flew in a special surgical team from abroad last week to work alongside Pakistani doctors to help treat the wounded in two hospitals. “This is now a war zone,” said Marco Succi, a Red Cross spokesman.

Not since Pakistan forged an alliance with the United States after 9/11 has the Pakistani Army fought its own people on such a scale and so close to a major city. After years of relative passivity, the army is now engaged in heavy fighting with the militants on at least three fronts.

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Jim Sinclair’s Commentary

Maybe we can have another bailout bill this week for states and municipalities with pork and bicycles attached. Today’s bailout that has the markets all befuddled is a bad joke with a lot of fanfare that means very little. The vote certainly was no booming success.

Schwarzenegger to U.S.: State may need $7-billion loan
In a letter obtained by The Times, the governor warns that tight credit has dried up funds California routinely relies on and it may have to seek emergency aid within weeks.
By Marc Lifsher and Evan Halper, Los Angeles Times Staff Writers
October 3, 2008

SACRAMENTO — California Gov. Arnold Schwarzenegger, alarmed by the ongoing national financial crisis, warned Treasury Secretary Henry M. Paulson on Thursday that the state might need an emergency loan of as much as $7 billion from the federal government within weeks.

The warning comes as California is close to running out of cash to fund day-to-day government operations and is unable to access routine short-term loans that it typically relies on to remain solvent.
The state of California is the biggest of several governments nationwide that are being locked out of the bond market by the global credit crunch. If the state is unable to access the cash, administration officials say, payments to schools and other government entities could quickly be suspended and state employees could be laid off.

Plans by several state and local governments to borrow in recent days have been upended by the credit freeze. New Mexico was forced to put off a $500-million bond sale, Massachusetts had to pull the plug halfway into a $400-million offering, and Maine is considering canceling road projects that were to be funded with bonds.

California finance experts say they know of no time in recent history when the state has sought an emergency loan of this magnitude from the federal government. The only other such rescue was in 1975, they said, when the federal government lent New York City money to avoid bankruptcy.

“Absent a clear resolution to this financial crisis,” Schwarzenegger wrote in a letter Thursday evening e-mailed to Paulson, “California and other states may be unable to obtain the necessary level of financing to maintain government operations and may be forced to turn to the federal treasury for short-term financing.”

The letter, obtained by The Times, came on the eve of a vote by the House of Representatives on a $700-billion rescue package, but it was too soon to know how the package would affect the nation’s paralyzed credit markets. The Senate approved the so-called rescue bill Wednesday night.

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Jim Sinclair’s Commentary

Be cautious of the “set in cement” opinion that the negative economic conditions in Europe will exceed the size of the unwind in the USA, the largest economy on the planet and the one who wrote over 75% of all OTC derivatives. This opinion is over discounted in the markets which tends to vote against it or at the least vote for overstatement.

The European situation may come all at once, giving a scary visage, but in the final analysis will be considerably smaller in financial terms than the many trillions already fried in dollar based financial entities.

IMF Says U.S. Faces `Sharp Downturn’ as Market Crisis Worsens
By Christopher Swann

Oct. 2 (Bloomberg) — The U.S. may fall into a recession as the financial rout deepens, the International Monetary Fund said in its most pessimistic outlook for the world’s largest economy since the credit crisis began last year.

“The financial turmoil that began in the summer of 2007 has mutated into a full-blown crisis,” the fund said in a section of its semiannual World Economic Outlook released in Washington today. There is “a substantial likelihood of a sharp downturn in the United States,” the fund said.

By contrast, the IMF in July projected the U.S. would “contract moderately” in the second half of 2008 before recovering in 2009. Officials also said in a July update of economic forecasts that the global growth outlook was more “balanced.”

“Strong actions by policy makers to deal with the stress and support the restoration of financial system capital seem particularly important,” the lender said today. Next week, the IMF will release updated projections for gross domestic product for the U.S. and other economies.

The warning came as the U.S. Congress worked to pass a $700 billion bank rescue package to reassure financial markets. The Senate passed the legislation late yesterday, and the House of Representatives may vote tomorrow after rejecting a different version three days ago.

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Posted by & filed under General Editorial.

Dear CIGAs,

Walter J. “John” Williams informs us that:

Fed Began Sidestepping No “Bailout” Before First House Vote – M1 and M2 Annualized Surges of 800% and 200% are Panic Distortions (Offset in M3).

Visit John’s site at www.shadowstats.com

Dear CIGAs,

As Jim points out, financial collapses happen on weekends. We look for major European banks, among the world’s largest, to fail, be forced to merge or be taken over by their respective governments this weekend.

Respectfully yours,
Monty Guild

Dear Monty,

The Europeans are not apt to see solace in the US dollar. Such an event turns Europeans towards gold as the only safe asset with no liability associated with it.

The world of collapsing financial institutions will turn the tide towards gold. Keep in mind that 90 percent of all the OTC crap was manufactured in the good ole USA. The only real ball outside of that was UBS.

Regards,
Jim

Financial Crisis: So much for tirades against American greed
Ambrose Evans-Pritchard says it is ironic that European banks have turned out to be deeper in debt than their US counterparts.
By Ambrose Evans-Pritchard
Last Updated: 1:12AM BST 02 Oct 2008

It took a weekend to shatter the complacency of German finance minister Peer Steinbrück. Last Thursday he told us that the financial crisis was an “American problem”, the fruit of Anglo-Saxon greed and inept regulation that would cost the United States its “superpower status”. Pleas from US Treasury Secretary Hank Paulson for a joint US-European rescue plan to halt the downward spiral were rebuffed as unnecessary.

By Monday, Mr Steinbrück was having to orchestrate Germany’s biggest bank bail-out, putting together a €35 billion loan package to save Hypo Real Estate. By then Europe was “staring into the abyss,” he admitted. Belgium faced worse. It had to nationalise Fortis (with Dutch help), a 300-year-old bastion of Flemish finance, followed a day later by a bail-out for Dexia (with French help).

Within hours they were all trumped by Dublin. The Irish government issued a blanket guarantee of the deposits and debts of its six largest lenders in the most radical bank bail-out since the Scandinavian rescues in the early 1990s. Then France upped the ante with a €300 billion pan-European lifeboat for the banks. The drama has exposed Europe’s dark secret for all to see. EU banks took on even more debt leverage than their US counterparts, despite the tirades against ”le capitalisme sauvage” of the Anglo-Saxons.

We now know that it was French finance minister Christine Lagarde who begged Mr Paulson to save the US insurer AIG last week. AIG had written $300 billion in credit protection for European banks, admitting that it was for “regulatory capital relief rather than risk mitigation”. In other words, it was underpinning a disguised extension of credit leverage. Its collapse would have set off a lending crunch across Europe as banking capital sank below water level.

It turns out that European regulators have allowed even greater use of “off-books” chicanery than the Americans. Mr Paulson may have saved Europe.

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Posted by & filed under General Editorial.

Dear Friends,

The amount of calls and emails coming in are actually frightening in the sense of the work it would take to answer. I really must ask you to give me a break as there is so much on my table.

Please know that I am on top of things, feeling great and am full of energy. Also please know that there nothing wrong with anything I am attached to. I have never felt more sure about gold and the investments therein.

I am not concerned about anything. Time will prove me totally correct.

Be logical. Read what I have written and relax.

Respectfully yours,
Jim

Posted by & filed under General Editorial.

Dear Friends,

Follow this logic:

Paper is collapsing as there is no credit market right now for major and financial entities.

The masses sell Honest Money (Gold) and run into paper, backed by bankrupt governments.

Proper logic would be to sell that paper and move into gold and gold shares that are at giveaway prices.

History proves the latter to be the course of action to take

Respectfully yours,
Jim

Jim Sinclair’s Commentary

A key reason why central banks want to hold onto gold is the instability of their most common reserve asset, the dollar.

Central banks in Europe favour gold as crisis unfolds
Published: October 03, 2008, 00:13

London: Sales of gold by European central banks are likely to be lower than expected over the next year as the global banking crisis boosts bullion’s appeal as a “safe” reserve asset.

And banks elsewhere in the world, most notably in Asia and the Middle East, may even become buyers of gold in an attempt to diversify their reserves away from the dollar, analysts say.

Under the terms of the Central Bank Gold Agreement, signed in 1999 by key European institutions including Germany’s Bundesbank and the European Central Bank and renewed in 2004, members can sell up to 500 tonnes of gold a year.

But in the fourth year of the latest agreement, which ended on Friday, sales fell well short of this ceiling, to just over 357 tonnes. With banks worried by the outlook for the financial sector, sales could be even lower in the final year of the pact.

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Jim Sinclair’s Commentary

This will go down as the dumbest thing our financial leaders ever do.

This has set off a huge amount of OTC default derivatives now moving to full value as a counterparty goes Chapter 11.

In a sense, do not let this happen to you. For God sake protect yourself

Gold is the only item that will, as the smoke clears, be understood as the single asset of wealth protection.

Lehman Hedge-Fund Clients Left Cold as Assets Frozen (Update3)
By Tom Cahill

Oct. 1 (Bloomberg) — Lehman Brothers Holdings Inc.’s bankruptcy probably means the end of hedge-fund manager Oak Group Inc. after 22 years in business.

John James, who runs the Chicago-based firm with $25 million of assets, didn’t buy Lehman stock or debt. Instead, his potentially fatal mistake was to rely on the bank’s prime brokerage in London, a unit that provides loans, clears trades and handles administrative chores for hedge funds. He’s one of dozens of investment managers whose Lehman prime-brokerage accounts were frozen when the company filed for protection from creditors on Sept. 15.

“We’re probably going out of business and liquidate, game over,” James, 59, said. “We’ve lost 70 percent of our assets.”

The list of funds trapped in the Lehman morass keeps growing. London-based MKM Longboat Capital Advisors LLP said last week it will close its $1.5 billion Multi-Strategy fund in part because of assets stuck at Lehman, according to an investor letter.

LibertyView Capital Management Inc. of Hoboken, New Jersey, owned by Lehman’s Neuberger Berman unit, told investors on Sept. 26 it had suspended “until further notice” attempts to calculate the value of its funds. LibertyView wasn’t included in the Sept. 29 sale of Neuberger to Bain Capital LLC and Hellman & Friedman LLC.

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Jim Sinclair’s Commentary

They just realized this?

IMF Says Financial Turmoil Now “Full Blown Crisis”
10/02/08 11:30 am (EST)

(CEP News) – According to a first glance of the IMF’s Global Economic Outlook, the financial turmoil has now been upgraded to a “full blown crisis”, and strong action is needed to counter it.There is a substantial likelihood of a severe economic downturn in the United States, although Europe may be partially insulated against further shocks.

As a consequence, the IMF called on governments across the globe to take strong action to “deal with the stress and support the restoration of financial system capital.”

In an interview with Reuters on Sept. 30, IMF Managing Director Dominique Strauss-Kahn said the U.S. Congress must act urgently and approve the $700 billion rescue package. He said even if the plan is not perfect, it’s better than nothing.

Strauss-Kahn also said Europe needs to develop a plan for its own financial crisis.

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Jim Sinclair’s Commentary

We do not have to worry that the following will happen here because the Zimbabwe situation was caused by foolish political judgment, the move towards socialism, a puppet central bank and a fascist/dictatorial type of government.

Life in Zimbabwe: Wait for Useless Money
By CELIA W. DUGGER
Published: October 1, 2008

HARARE, Zimbabwe Long before the rooster in their dirt yard crowed, Rose Moyo and her husband rolled out of bed. It is time to get up, intoned the robotic voice of her cellphone. Its glowing face displayed the time: 2:20 a.m.

They crept past their children sleeping on the floor of the one-room house Cinderella, 9, and Chrissie, 10 and took their daily moonlit stroll to the bank. The guard on the graveyard shift gave them a number. They were the 29th to arrive, all hoping for a chance to withdraw the maximum amount of Zimbabwean currency the government allowed last month the equivalent of just a dollar or two.

Zimbabwe is in the grip of one of the great hyperinflations in world history. The people of this once proud capital have been plunged into a Darwinian struggle to get by. Many have been reduced to peddlers and paupers, hawkers and black-market hustlers, eating just a meal or two a day, their hollowed cheeks a testament to their hunger.

Like countless Zimbabweans, Mrs. Moyo has calculated the price of goods by the number of days she had to spend in line at the bank to withdraw cash to buy them: a day for a bar of soap; another for a bag of salt; and four for a sack of cornmeal.

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Posted by & filed under General Editorial.

Dear CIGAs,

I have no doubt that $1650 will come. My concern is not that it will not happen, but that I am much too conservative in my long-term price objective since 2000.

If major banks can be torn apart how can we have faith in the small local institutions that hold most of your ready cash?

When I said “This is IT,” it is not something that I take lightly. Never in 49 years in finance have I seen a set of circumstances so challenging to the man in the street.

What I am getting at is a simple question. Are you prepared? You have heard us talk repeatedly on removing financial intermediaries between you and your assets, but the time has come for us to recommend going one step further:

Hold enough cash at your household to last you a month or two. It may be largely unnecessary for the majority, but what do you have to lose? If your bank should fail this will save you a lot of grief in the short term. If they do not, you still have all your cash that can easily be deposited back into your account.

Regards,
Jim

Posted by & filed under General Editorial.

Dear Extend Family,

Unless the LIBOR rate drops sharply we are facing a planetary financial crisis next week.

For God’s sake protect yourself.

Gold and gold related items will be the only true storehouses of wealth. The bailout bill is powerless to reverse what is now happening.

This is a modern day Weimar happening right before our eyes.

Respectfully yours,
Jim

Posted by & filed under General Editorial.

Dear CIGAs,

Who paid the three? Was the homeless man really homeless? What has the performance of Barclay’s Wealth Fund been?

A banker robs his employers at the Bank Espirito Sancto of the Vatican and he ends up hanging himself under the London Bridge.

Money people who kill others with abandon and without any regret are not isolated from instant Karma.

Investors are livid. I am livid. All those including the man in the street are livid beyond imagination at those that use criminality for profit everywhere.

I am thinking of inviting a few people to a special meeting in Toronto in February so I can introduce them to you. That is if they are still available.

Arrests Over Top Banker’s Murder
7:01pm UK, Tuesday September 30, 2008

Three people have been arrested over the murder of a top banker who was beaten to death while trying to save a homeless man. Frank McGarahan, 45, chief operating officer of Barclays Wealth, was set upon by a group of men in Norwich at 3am on Sunday.

The father of two, from Much Hadham, Hertfordshire, had been queuing for a taxi with relatives at the time.

Detectives said three men – all in their early twenties and from the Norwich area – had been arrested. They are being held at police stations across Norfolk.

Sky’s Angela Corpe, at the scene of the attack in Norwich, added: “Police say they desperately do not want people to think this case is now closed, and anyone with any further information should come forward.” Mr McGarahan stepped in when he spotted a gang attacking the homeless Lithuanian man, who was walking a dog with his girlfriend.

Detective Superintendent Chris Hobley, heading the inquiry, said there was an “exchange of words” then Mr McGarahan was hurt.

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Jim Sinclair’s Commentary

As they say, a picture speaks a thousand words.

Jim Sinclair’s Commentary

You have all the fax numbers for the Senate as well as phone numbers for both the House and Senate, so please use them. Tell them whatever you want but make sure you tell them as they are for the first time in history sensitive to incoming commentary.

House limits constituent e-mails to prevent crash
By Jordy Yager
Posted: 09/30/08 01:16 PM [ET]

The House is limiting e-mails from the public to prevent its websites from crashing due to the enormous amount of mail being submitted on the financial bailout bill.

As a result, some constituents may get a ‘try back at a later time’ response if they use the House website to e-mail their lawmakers about the bill defeated in the House on Monday in a 205-228 vote.

“We were trying to figure out a way that the House.gov website wouldn’t completely crash,” said Jeff Ventura, a spokesman for the Chief Administrative Office (CAO), which oversees the upkeep of the House website and member e-mail services.

The CAO issued a “Dear Colleague” letter Tuesday morning informing offices that it had placed a limit on the number of e-mails sent via the “Write Your Representative” function of the House website. It said the limit would be imposed during peak e-mail traffic hours.

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Jim Sinclair’s Commentary

I am so hard pressed to grasp the Super Bowl presentation of the Bailout bill that hasn’t the funds, even at its high, to provide the ability to bail out the world financial system.

Financial Tsunami: The End of the World as We Knew It
by F. William Engdahl
Global Research, September 30, 2008

The unexpected rejection by the US Congress of the Bush Administration financial rescue plan, TARP on September 29 has opened up the spectre for the first time of a 1931-style domino wave of worldwide bank failures. That is already underway across the US banking spectrum with the failure, nationalization or forced liquidation in the past two weeks of Fannie Mae and Freddie Mac, of the giant Washington Mutual mortgage lender, of the nation’s fourth largest deposit bank, Wachovia. That was on top of a wave of smaller bank failures that began with IndyMac in the spring. For some it is appealing and more simple to grasp the magnitude of these titanic events in the US-centered financial world by assuming it is all part of a pre-planned grand conspiracy by the Money Masters, what in the 1920s in the USA was termed the Money Trust, to control the entire financial world.

As the details of the present crisis reveal, there are huge ideological fault lines making for chaos and a potential meltdown of the Laissez Faire financial system. That present system, which was built on the back of Wall Street financial and banking deregulation since 1987 when Alan Greenspan, a devout follower and close friend of radical individualist Ayn Rand, became Wall Street’s man at the Federal Reserve for almost 19 years, is over now with the failure of the Henry Paulson $700 billion bailout scheme. Governments worldwide now face no alternative but to begin the painful process of putting the financial genie back in the bottle and re-regulating an out-of-control financial system. The failure of the UK Government and the US Government to address that fundamental issue is behind the present crisis of confidence.

A brief look at history

The Great Depression in Germany in 1931 began with a seemingly minor event-the collapse of a bank in Vienna, Creditanstalt, that May. For readers interested in more on the remarkable parallels between that crisis and that of today, I recommend the treatment in my earlier volume, A Century of War: Anglo-American Oil Politics and the New World Order.

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9th Commandment Unilaterally Cancelled.

Regulators have informed us this morning that Moses, having involved himself in politics (head of a nation), and markets (Golden Idol) misstated the tablets received from God.

There are no ten commandments. There are only nine. We should have always guessed that the 9th commandment was a fib and this AM it was unilaterally notated by US regulators.

“Thou Shalt Not Lie” we are now told was always in fact itself a lie.

Financial entities no longer have to mark OTC derivatives to some reasonable nothingness, but rather market to hold to maturity value.

What makes you think that at maturity (of what) there will be satisfactory value of any kind? These are not mortgages. These are geek creation OTC derivatives on mortgages living way down at the bottom of a 20 foot equation. On top of all that if one side of the special performance contract (OTC derivatives) goes broke, like Lehman did, notional value becomes full value.

Jim Sinclair’s Commentary

It is being reported today that many hedge funds that had been clients and used the facilities of Lehman are in trouble and may close down.

The translation of that is that when bankruptcy of one side of an OTC derivative fails then Notional Value becomes Total Value, a fact no one seems to have focused on when the Fed walked away from Lehman. Walking away from Lehman was in order to send a message. The message appears to have been “Holy S**t!”

GE is yet to own up to the fact that their problem is OTC derivatives. They were a major player.

Jim Sinclair’s Commentary

Do something other than simple carping. Tell this gang what you want done on this so-called Bailout Bill. Let your opinion be heard, by fax, phone or both.

Click here to view a complete contact list of Senators…

Jim Sinclair’s Commentary

Recognize the manipulative tactic common to jitneys out of Canada. Notice the preferential treatment for Google.

Google price corrected after trading snafu
Closing price adjusted after shares of the tech giant plummet due to erroneous trade. Change to final Nasdaq value to follow.
By Ben Rooney, CNNMoney.com staff writer
Last Updated: September 30, 2008: 8:06 PM ET

NEW YORK (CNNMoney.com) — An accidental trade drove shares of Google Inc. to unbelievable lows Tuesday, causing the Nasdaq to correct the stock’s closing price and adjust the index’s final value.

The Internet search engine’s stock appeared to have plummeted to a low of $25.80 at one point during the session. Shares opened at $396 and traded in a relatively tight range before dropping sharply near the close of trade.

“A market participant sent in a large number of orders and drove the price down at approximately [3:57 p.m. ET] which caused the bid-offer to be artificially low due to their mistake,” according to a Nasdaq spokesman.

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Jim Sinclair’s Commentary

News from Pakistan.

US drone strike kills five in Pakistan: officials
(Agencies)
Updated: 2008-10-01 09:19

MIRANSHAH, Pakistan — A US pilotless drone fired two missiles at a house in northwest Pakistan killing five people, Pakistani intelligence agency officials said Wednesday.

Frustrated by an intensifying Taliban insurgency in Afghanistan, US forces have in the past month carried out seven missile strikes by pilotless drones and a commando raid on the Pakistani side of the border.

In the latest attack, a drone fired two missiles at a house near the town of Mir Ali in North Waziristan, at about midnight Tuesday (1800 GMT), two intelligence agency officials said.

The area is a known sanctuary for Pakistani Taliban and foreign militants near the Afghan border.

“We have reports of five dead including foreign militants,” said one of the officers, who declined to be identified as he is not authorized to speak to the media.

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Jim Sinclair’s Commentary

The following is nothing other than Legalized Fabrication.

SEC gives banks more leeway on mark-to-market
Wed Oct 1, 2008 3:24am EDT
By John Poirier and Emily Chasan

WASHINGTON (Reuters) – U.S. securities regulators on Tuesday gave the financial industry a reprieve from marking hard-to-value assets down to fire sale prices, throwing a lifeline to an industry beset by strained credit markets and the latest round of bank failures.

The U.S. stock market added to gains on the news, in hopes that regulators’ new interpretation of fair value, or mark-to-market, accounting rules, will slow or reverse the heavy flow of mortgage-related losses on banks’ balance sheets.

In the new guidance, first reported by Reuters, the U.S. Securities and Exchange Commission reminded financial services firms that they don’t need to use fire sale prices when evaluating their hard to price assets.

“This is a significant first step and adds stability, confidence, and liquidity within the capital markets,” said Steve Bartlett, president and chief executive of The Financial Services Roundtable. “By clarifying how to treat assets in an uncertain market, the SEC is continuing to provide transparency to investors and helping institutions to provide credit in periods of market stress.”

U.S. accounting rule maker, the Financial Accounting Standards Board said on its Web site on Tuesday that it would change the agenda for its Wednesday meeting to focus on fair value accounting. The board is contemplating issuing additional guidance through a FASB staff position as soon as Wednesday, according to a person familiar with the matter.

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Jim Sinclair’s Commentary

The question is not if an invasion of Pakistan is going to happen, but when.

If the attack comes before the upcoming election, the results may well depend on polls as well as tactical factors.

“Jonathan Landay, who spent two years in the region this year, called the situation in Pakistan more serious than that in Iran. He called the Iranian government responsible and its policies logical. Iran may be pursuing nuclear weapons, he added, but Pakistan is already a nuclear state and if it unravelled, it would pose a grave danger to regional and global security.”

Continuing US losses will lead to military strikes on Pakistan
Khalid Hasan
Daily Times
September 30, 2008

WASHINGTON: If the United States forces in Afghanistan continue to suffer casualties inflicted by insurgents crossing over from Pakistan, the next administration, whether Republican or Democratic, will come under tremendous public pressure to make direct strikes on Pakistani targets, according to three South Asia experts.

The observation came at a meeting organised by Khawaja M Ashraf, president of the Pakistani-American Congress, here on Sunday. The three experts who spoke on the prevailing situation in the region were, Walter Andersen of the Johns Hopkins University, Rodney Jones, who runs a local consultancy, and Jonathan Landay of McClatchy Newspapers, who has extensive experience of travelling in and writing about the region.

Andersen said the cross-border movement of insurgents from Pakistan into Afghanistan was a major US concern. As more US troops make their way into Afghanistan from next year, there will be in increase in attacks on them from the insurgents, prompting sharp public reaction in America for strong retaliatory action. The new American policy was no longer going to be confined to hot pursuit but when so warranted, direct military strikes inside the areas from where the attacks were seen to have originated or mounted.

He warned that any US president would come under enormous pressure if US troops continued to be killed by Pakistan-based insurgents and regardless of what party he belonged to, he would order strikes at Pakistan. Andersen added that there cannot be a military solution of the Afghanistan situation in the long term, while proposing a joint US-Pakistan policy to deal with the situation. More importantly, Afghanistan and Pakistan need to build a strong and co-operative relationship to meet the challenge posed by extremism. However, given the level of distrust that has marked their relationship, the new government in Pakistan will have to be willing to consider new policy options. He said India too will have to be taken on board because terrorism is affecting the entire region and requires the adoption of a regional approach.

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Jim Sinclair’s Commentary

Now think Pakistan and a National Emergency declaration.

Nuclear Terrorism Is World’s No. 1 Threat, UN’s ElBaradei Says
2008-09-30 10:36:38.400 GMT
By Jonathan Tirone

Sept. 30 (Bloomberg) — The likelihood that terrorists will detonate a nuclear weapon poses the greatest risk to world security, surpassing proliferation threats from Iran and North Korea, United Nations atomic chief Mohamed ElBaradei said.

“There is a lot of interest on the part of extremist groups to obtain nuclear material,” ElBaradei, director-general of the International Atomic Energy Agency, said at a scientific forum today in Vienna. “It’s the No. 1 security threat right now.”

The IAEA, established in 1956 under the slogan “Atoms for Peace,” said it’s becoming easier for groups and countries to access nuclear secrets because detailed bomb-making plans have been circulated electronically.

“The recipe of how to weaponize is in electronic form and out of the tube,” ElBaradei said. “We are on a crash course if we don’t change course.”

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Posted by & filed under General Editorial.

Dear Friends,

Please stop being spectators and put an end to financial fabrication!

Get involved in the Wall Street Bailout Bill.

If this bill is passed financial institutions will be freed from fair accounting rules that require them to reveal the true market value of the value-less paper they hold. That would allow them to continue lying about their solvency.

You simply must not let that happen. It legislates financial fabrication!

This is the first time in my 67 years that legislators are listening to the public, so please tell them what you want on this bill, whether it be yes or no, but do not support lying as an economic tool.

Have we not already had ENOUGH of fabricated, spun, mistruths?

Vote No against a change in Fair Accounting Rules. Vote any way you wish on the rest of this meaningless exercise.

The following is a contact list of Republicans who voted for the Bailout. Contact them and voice your opinions!

ALABAMA
Bachus, Spencer
Bonner, Jo
Everett, Terry
Rogers, Mike

ARKANSAS
Boozman, John

CALIFORNIA
Bono, Mary
Calvert, Ken
Campbell, John (surprised!)
Dreier, David
Herger, Wally
Lewis
Lungren, Dan
McCarthy, N.
McKeon, Buck
Miller, Gary
Radanovich, George

COLORADO
Tancredo, Tom

CONNECTICUT
Shays, Chris

DELAWARE
Castle, Mike

FLORIDA
Crenshaw
Putnam, Adam
Weldon, Dave

IDAHO
Simpson, Mike

ILLINOIS
Kirk, Mark
LaHood, Ray
Weller, Jerry (Did Not Vote)

INDIANA
Souder, Mark

KENTUCKY
Lewis, John
Rogers

LOUISIANA
McCrery, Jim

MARYLAND
Gilchrest, Wayne

MICHIGAN
Camp
Ehlers, Vern
Upton, Fred

MINNESOTA
Kline

MISSISSIPPI
Pickering, Chip

MISSOURI
Blunt, Roy
Emerson, Jo Ann

NEVADA
Porter, Jon

NEW JERSEY
Ferguson
Saxton

NEW MEXICO
Wilson, Heather

NEW YORK
Fossella, Vito
King, Peter
McHugh
Reynolds, Tom
Walsh, Jim

OHIO
Boehner, John
Hobson, Dave
Pryce, Deborah
Regula, Ralph

OKLAHOMA
Cole, Tom

OREGON
Walden, Greg

PENNSYLVANIA
Peterson

SOUTH CAROLINA
Brown, Henry
Inglis, Bob
Wilson, Clyde

ILLINOIS
Kirk, Mark
LaHood, Ray

TEXAS
Brady, Kevin
Granger
Sessions
Smith

UTAH
Cannon, Chris

VIRGINIA
Cantor, Eric
Davis, Tom
Wolf, Frank

WISCONSIN
Ryan, Paul

WYOMING
Cubin, Barbara