Posts Categorized: Jim’s Mailbox

Posted by & filed under Jim's Mailbox.


In case you missed it, Merrill Lynch says the rich are turning to gold bars for safety

To the best year ever,
CIGA Bernie

Merrill Lynch says rich turning to gold bars for safety
Merrill Lynch has revealed that some of its richest clients are so alarmed by the state of the financial system and signs of political instability around the world that they are now insisting on the purchase of gold bars, shunning derivatives or "paper" proxies.
By Ambrose Evans-Pritchard
Last Updated: 10:32AM GMT 09 Jan 2009

Gary Dugan, the chief investment officer for the US bank, said there has been a remarkable change in sentiment. "People are genuinely worried about what the world is going to look like in 2009. It is amazing how many clients want physical gold, not ETFs," he said, referring to exchange trade funds listed in London, New York, and other bourses.

"They are so worried they want a portable asset in their house. I never thought I would be getting calls from clients saying they want a box of krugerrands," he said.

Merrill predicted that gold would soon blast through its all time-high of $1,030 an ounce, and would hit $1,150 by June.

The metal should do well whatever happens. If deflation sets in and rocks the economic system it will serve as a safe-haven, but if massive monetary stimulus gains traction and sets off inflation once again it will also come into its own as a store of value. "It’s win-win either way," said Mr Dugan.

He added that deflation may prove the greater risk in coming months. "It’s very difficult to get the deflation psychology out of the human brain once prices start falling. People stop buying things because they think it will be cheaper if they wait."


Posted by & filed under Jim's Mailbox.

Dear Jim,


Today’s Financial Times had an article entitled “Fund Heads Voice Short Selling Fears.

The first paragraph said “Three associations representing fund managers in Australia, The UK and the US have joined forces to warn that their industry would be damaged if market regulators publish detailed information on short selling trading positions.”

What else is there to say? Evidently, the old song refrain… "let the sun shine… let the sun shine in” is not a favorite of the fund industry.

Respectfully yours,
Monty Guild


The unwise sold the Euro and bought US dollars due to this. Although the Euro is ugly it is a beauty compared to the US dollar.

Respectfully yours,
Monty Guild

RPT-ECB FOCUS-ECB faces lengthy wait for rate cuts to hit home
Wednesday, January 07, 2009 10:30:03 PM (GMT-08:00)
Provided by: Reuters News
By Krista Hughes

FRANKFURT, Jan 7 (Reuters) – If the European Central Bank was really hoping to start the new year with hard evidence that record interest rate cuts are helping the economy, it must be feeling disappointed.

ECB President Jean-Claude Trichet [ID:nLU207563] has batted back questions about the chances of another move this month by saying the bank was focussed on the impact of its 1.75 percentage points in cuts since October.

Yet indicators show little sign that euro-zone households and businesses are feeling the full benefit.

Average corporate borrowing costs have actually increased in the last few months, judging by corporate bond yields, and persistent financial market tensions are also dulling the pass-through of lower official rates to the real economy. (See [ID:nL798350] for factbox)

Meanwhile, with the euro zone economic outlook worsening by the week and inflation already well below the ECB’s 2-percent ceiling, having fallen to 1.6 percent in December, the ECB may have little time to wait and see.



Jim Sinclair’s Commentary

Deliveries out of Comex warehouse – the plot thickens.

It has been reported to me that the Comex is trying to argue people out of taking delivery of gold from the warehouse.

Tomorrow I am going to check my records to see who is the auditor for the warehouse.

You know on 9/11 all that gold was smashed in the cellar vaults when the Twin Towers came down.

I assume there was no damage to even one bar, nor was even one bar pocketed in the process of backhoe removal of debris.

Wasn’t all the floors of the collapsed Twin Towers about 6 inches thick when it was all over?

Maybe the Comex warehouse holds one very large and ugly bar of gold accounting for 75% of the ounces.

"In today’s world anything is possible." Quote from Bernie Madoff.

I love the following writer:

“We have made at least 15 calls and they are now asking WHY I want delivery.
They say it will cost a lot of money to sell it back to them. Ha!
Because I am from MTS they think I fell off a turnip truck.
–CIGA Hslm P."


I saw this article today and thought it was a nice confirmation of information Dan and Monty have been giving us for several weeks, not to mention Points 10 and 11 of your 9/1/06 Formula. Once again I found striking parallels in the language:

Jim’s Formula 9/1/06 Points 10 and 11:

10.  If the investment by non US entities fails to meet the exiting dollars by all means, the US must turn within to finance the shortfall.

11. Assuming the US turns inside to finance all maturities, interest rates will rise with the long term rates moving fastest regardless of prevailing business conditions.

CIGA Richard

NY Times article 1/7/2009:

China’s voracious demand for American bonds has helped keep interest rates low for borrowers ranging from the federal government to home buyers. Reduced Chinese enthusiasm for buying American bonds will reduce this dampening effect…

Click here to read the full article…

Dear Jim,

I bought this on EBay today. Nothing like repeating history, eh?


Fort Wealth Trading Co. LLC
ext 104


Dear JB,

The question is what did you pay?



Hey Jim,

The statistical extremes reported by the non-reportable and commercial traders suggest that the down D-wave has terminated. Yet, fear keeps most players on the sidelines until a large chunk of the A-wave advance has already taken place. I expect one more dip over the summer, then a big move above $1,000 starting Fall 2009.

I’ll keep you posted.

Click any chart to enlarge all in PDF format

Gold Wave Analysis - 20090108_100731 COT FO CSWA - 20090108_100731 COT FO NRSWA - 20090108_100731

Posted by & filed under Jim's Mailbox.

Dear CIGAs,

CIGA Dean shares with us a case study on why the heard headed for the long bond, for the T bill and into every port that was and will be no port in this financial storm. There is only one and that is Gold. They will come at $1650 and again at $6000.


I wanted to pass this story on to you, Dan and Monty.

I grew up on a ranch. The largest structure on our ranch was a very large and beautiful classic designed barn.

One night when I was very young the barn caught on fire.

My Dad and his hired men risked running into the barn to rescue the horses. Naturally the horses were panicked and terrified. After getting the horses outside to safety the horses turned around and ran back into the barn. Despite their best efforts they could not stop the horses from running back into the barn and they all perished in the fire.

Why would the horses do such a foolish thing?

My Father told me that the barn was where they felt safe and secure. He explained to me that in their blind panic they ignored the obvious danger and they ran back into the only place they had been conditioned to feel safe in.

Sound familiar?




Here is a case of political correctness run completely amok… 

No one or no thing is safe until Washington is in recess. If it moves these people will tax it…

Trader Dan


What about taxing human flatulence at $10 a pop, of course with a national identity card placed appropriately so that automatic reports are made of offending incidents. We want zero tolerance when it comes to this offal subject.


EPA ‘Cow Tax’ Could Charge $175 per Dairy Cow to Curb Greenhouse Gases 
Farm Bureau warns just this one rule may increase milk production costs up to 8 cents a gallon.
By Jeff Poor 
Business & Media Institute
12/30/2008 4:55:19 PM

Call this one of the newest and innovative the ways your government has come up with to battle greenhouse gas emissions.

Indirectly it could be considered a cheeseburger tax, but one of the suggestions offered by the Environmental Protection Agency (EPA) in its Advance Notice of Proposed Rulemaking (ANPR) for regulating greenhouse gas emissions under the Clean Air Act is to levy a tax on livestock.

The ANPR, released early this year, would give the EPA the authority to regulate greenhouse gas for not only greenhouse gas from manmade sources like transportation and industry, but also “stationary” sources which would include livestock.

The New York Farm Bureau assigned a price tag to the cost of greenhouse gas regulation by the EPA in a release last month.

“The tax for dairy cows could be $175 per cow, and $87.50 per head of beef cattle. The tax on hogs would upwards of $20 per hog,” the release said. “Any operation with more than 25 dairy cows, 50 beef cattle or 200 hogs would have to obtain permits.”

Kate Galbraith, correspondent for The New York Times, noted on the Times’ “Green Inc.” blog that such a “proposal is far from being enacted” and that the “hysteria may be premature.”

But Rick Krause, senior director of congressional relations for the American Farm Bureau, warned it’s certainly feasible – especially based on the rhetoric of President-elect Barack Obama and the use of the EPA to combat global warming. Such action by an Obama administration would take an act of Congress for livestock to be exempt.


Posted by & filed under Jim's Mailbox.

Dear CIGAs,

The following is breaking news from CIGA Tom.



Dear Jim,

Just one little spark could blow this whole thing sky high and gold and oil with it!


‘Light the fire’ order set Mumbai ablaze

Evidence is growing that the bombings were orchestrated by militants in Pakistan

TENSIONS between India and Pakistan, the rival nuclear powers, are on a knife edge this weekend as Islamabad refuses to admit that the Mumbai terrorist outrage was planned and carried out by Pakistanis.

Zarar Shah, a leading commander of the Lashkar-e-Taiba group, has admitted under interrogation in Pakistan that he advised the terrorists by telephone as the attack unfolded.

Controllers in Pakistan watched live television and warned the gunmen of the arrival of Indian commandos, according to evidence amassed by the FBI and handed over to the Pakistani government.


Dear Big Tatanka,

Yes, in a big way.



Dear Jim,

It looks like a longer drawn out conflict with Israel. Barak says "it won’t be short and it won’t be easy." Tens of thousands is not a week long incursion! Freezing in Ukraine, Europe soon, bombs in the Middle East, Tanzania looks pretty good right now!

Israel okays call-up of tens of thousands of IDF reservists
By Barak Ravid, Haaretz Correspondent, and Reuters

Israel’s government has approved the call-up of tens of thousands of reservist soldiers, it was annnounced Saturday, almost simultaneously with the launch of a Gaza ground incursion aimed at halting rocket fire on Israel’s southern communities.

Prime Minister Ehud Olmert’s office said in a statement that, in accordance with a secret cabinet discussion Friday, the government ordered the armed forces "to draft the necessary reservists, on a scale of tens of thousands of troops."


IDF soldier killed, another seriously wounded in Gaza ground operation
By Amos Harel, Yoav Stern and Yanir Yagana, Haaretz Correspondents, and News Agencies

An Israeli soldier was killed in a clash with Gaza militants on Sunday, the first fatality suffered by Israel since it launched a ground operation on Saturday night against the coastal territory’s Hamas rulers.

The soldier, from the Israel Defense Forces Golani infantry brigade, was killed in the densely populated Jabalya refugee camp in the northern Gaza Strip.


CIGA Big Tatanka

Dear BT,

Looking your way today from Africa, it certainly looks that way.

a. Israel makes a serious mistake in judgment.
b. Pakistan goes nuclear.
c. Terror returns to major international centers.

There is potential for something terrible looking your way.


Posted by & filed under General Editorial, Jim's Mailbox.

Dear Jim,

What? There is a bottomless pit of money? Unbelievable!

Green Hornet

(Click images to enlarge)

zimbabwe-2008-01-18 Zimbabwe1

U.S. governors seek $1 trillion federal assistance
Fri Jan 2, 2009 5:48pm EST
By Jon Hurdle

PHILADELPHIA (Reuters) – Governors of five U.S. states urged the federal government to provide $1 trillion in aid to the country’s 50 states to help pay for education, welfare and infrastructure as states struggle with steep budget deficits amid a deepening recession.

The governors of New York, New Jersey, Massachusetts, Ohio and Wisconsin — all Democrats — said the initiative for the two-year aid package was backed by other governors and follows a meeting in December where governors called on President-elect Barack Obama to help them maintain services in the face of slumping revenues.


Dear Green Hornet,

No, there is no bottomless pit of money!

There is a bottomless pit of worthless PAPER. This is the thesis of Mugabe/Zimbabwe economics, and will have the same results as applied by Mugabee/Zimbabwe.

The reality is that yes, the Zimbabwe paper pit is quite possible in the US dollar scenario. It is not only possible but getting closer to probable with each event as discussed below. Wake Up!

Break the "illusion" and see the "real" situation. It is just that SIMPLE.

People believe the Illusion to be real and the real to be an illusion until they WAKE UP!

I have only one agenda here.



Posted by & filed under Jim's Mailbox.


I’m slipping under the radar this month. We’re buying January Comex gold for delivery and removal from the Comex warehouse. We found this little tidbit out when Trader Dan told me about his November delivery, so we are taking the gold out as fast as possible. Hope this helps

Fort Wealth Trading Co. LLC
866-443-0868 ext 104

Dear JB,

"When COMETS Unite"

I have a small story for you. I used to keep fish in my office as a hobby. In the Asian tradition, having an Arawanas is very good luck. This type of fish looks like a WW2 landing craft. It has a snake like body and an landing craft mouth.

You feed Arawanas little fish. The entire procedure is rather gross, but hey, for good luck the gross might be worth it.

One day I brought home the usual little plastic bag full of wiggling Arawanas food.

These little wiggling guys actually organized and attacked the Arawanas all at once. Together they ate off his fins. Now I had a fin-less Arawanas floating helplessly upside down.

It did not take long for the Arawanas to perish for his sins against the little wiggling guys.

The name of the food that an Arawanas eats is "COMETS." I am not joking.

I was so impressed by these courageous COMETS that I let them live long and prosper in the dead arawanas’s 150 gallon tank. They had earned their good life. They eat harmless dead dried flies.

The moral of this TRUE story is that when COMETs unite they can kill anything of any size, no matter how dreadful looking it is.

For an Arawanas to be good luck, they cannot be exposed to united Comets. Comets are better luck than any Arawanas. This is certainly true for my COMETS!

The ugly Arawanas is a COMEX paper gold manipulative short seller. We are the COMETS!


Jim Sinclair’s Commentary

The following was sent in courtesy of CIGA Carey:

Forrest Gump Explains Mortgage Backed Securities

Mortgage Backed Securities are like boxes of chocolates.
– Criminals on Wall Street stole a few chocolates from the boxes and replaced them with turds.
– Their criminal buddies at Standard & Poor rated these boxes AAA Investment Grade chocolates.
– These boxes were then sold all over the world to investors.
– Eventually somebody bites into a turd and discovers the crime.
– Suddenly nobody trusts American chocolates anymore worldwide.
– Hank Paulson now wants the American taxpayers to buy up and hold all these boxes of turd-infested chocolates for $700 billion dollars until the market for turds returns to normal.
– Mama always said: "Sniff the chocolates first Forrest".

Posted by & filed under Jim's Mailbox.

Dear Jim,

It seems Iceland, Hungary, Ukraine, Latvia, and Pakistan and now Belarus have all gotten loans from the IMF. What happens when there is no money left at the IMF?

Ciga Big Tatanka

IMF agrees $2.5bn for Belarus
Belarus has secured an emergency loan of $2.5bn (£1.74bn) from the International Monetary Fund.
By Ambrose Evans-Pritchard
Last Updated: 8:48AM GMT 01 Jan 2009

It becomes the sixth country after Iceland, Hungary, Ukraine, Latvia, and Pakistan to need a rescue since the crisis began.

The ex-Soviet state – still run by strongman Alexander Lukashenko – has suffered a run on its foreign reserves as the economic downturn engulfs Eastern Europe. The country’s key exports are potash fertilizer and oil products, both hit hard by the commodity crash.

The IMF’s chief, Dominique Strauss-Kahn, said the tough terms of the bail-out include "strict public-sector wage restraint" and cuts in state spending. Russia has pledged a further $2bn.#



The answer is quite simple. The US Fed will buy the 6 or more worthless loans and print more US dollar paper to re-paper the papered out IMF.

The Fed is the largest hedge fund in town and is loaded to the gills with worthless paper. Who knows, the Fed then issues bonds and buys more crap. The dollar has already gone wacko in tune with the Fed’s whacked out inventory, turning the dollar into a spinning wheat fly in the fall season that goes 9000 rpm in a blurred circle and dies, totally worn out by making its central bank a toxic land fill.

Even a nit-wit has to see where all this is going.

There is now no way out of the web of messes our masters have woven.

Happy (?) New Year,

Posted by & filed under Jim's Mailbox.

Marty’s thought for 2009

"Doing more than is expected is what makes the difference between the exhilaration of achievement, and the acceptance of mediocrity."

Jim Sinclair’s Commentary

The "M" word has no place in the CIGA dictionary.

Jim Sinclair’s Commentary

Compliments of CIGA Ken:

Busted and Bloated Paradigms and New Paradigms to come, thoughts from Ciga Ken Drees with certs in hand

The stock market is where you need to be for the long term.
Just use an Index Fund.
Housing always goes up.
Get as much house as you can afford.
Just put that on the Home Equity Loan.
Big gas hog vehicles.
Flip this house.

Bloated and Soon to Bust
Just toss it out, it’s cheaper to buy a new one.
Just get a divorce.
I can’t move back in with Mom and Dad.
I can’t move in with my kids and burden them.
I thought money markets were safe.
You can always trust cash.
At least I can use my credit card if things get bad.
Gold, what’s that?
Don’t worry, Washington will fix it.
Driving habits, eg., people driving to and from work with no riders.
High Paid athletes.
Pro Sports.
The Pro Sports revenue model itself.
Obesity everywhere.
Food TV.
I eat what I want, when I want.
If you don’t like it, just toss it.
Undecided majors in college.
College affordability/high priced schools.
Just charge it.
My job is safe.
Our country can fight a war anywhere, anytime.
Just Bail em out.
Retail Consumerism.

NEW Paradigms to come
Understanding money and economic basics.
You cannot trust Wall Street (well underway)
Political scrutiny from the people.
I talk with my congressman at least once a month.
Taking an interest and getting involved in Government.
Caring about your Government.
Anger/frustration about the state of the nation.
The dollar is not worth very much.
Gold is where you want to be or should have been.
Prices are going up all the time (underway)
Shortages of food, gasoline, etc.
Spend the dollar quick before the price of that item goes even higher.
I never eat fast food.
Eating out is a luxury.
Wasting food is a no-no.
Making homemade bread.
Frugal is in.
Bling is out.
Owning a home is not smart.
Renting is the way to go.
No, we don’t have cable TV.
Small Local newspapers make a comeback.
Who can afford college?
I am lucky and blessed to be employed.
Going to church/temple is good to do for many reasons.
Gardening. (well underway)
Saving money in a safe medium.
3 meals a day, snacks anytime — those were the good old days.
Save the money first, then buy it.
We cannot afford to keep troops all over the globe.
It’s hard to get a credit card.
Yes, I know my neighbors, don’t you know yours?
Able to make basic plumbing and electrical repairs.
Going to the library.
Mechanical knowledge is very handy.
At least baseball is cheap again.