Posted at 2:45 AM (CST) by & filed under Jim's Mailbox.


I always follow the money flows. As of last week the money flows into the Swiss Franc are bullish and have increased in intensity (15% for a lack of a better description is the acceleration factor).


Click chart to enlarge in PDF format


Posted at 2:40 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

It is rumored that Mr. Madoff was released on his own recognizance, and in the general area at the time of this incident.

Girl Scouts robbed as they sell cookies outside store
Reported by: Aubrey Mika Chancellor
Last Update: 4:43 pm

Two little girls and their troop leader were robbed outside a North Side store Wednesday night. The Brownie troop leader became emotional as she told News 4 WOAI how she witnessed the thief steal from the two 3rd graders.

"They didn’t take it from me. They took it from my girls," the troop leader said.

The 9-year-olds had set up and sold their cookies at the Walgreens in the Medical Center several times before, and everything had been fine. But Wednesday night, a man stole all of their hard-earned money.

"We were finishing up our shift and we were packing up our cookies," explained the girls’ troop leader.

That troop leader, who doesn’t want to be identified, said a man then walked up to their table.



Jim Sinclair’s Commentary

The heartless SOBs that caused all this suffering simply will not stop!

When is enough, enough?

Jobless hit with bank fees on benefits

-First, Arthur Santa-Maria called Bank of America  to ask how to check the balance of his new unemployment benefits debit card. The bank charged him 50 cents.

He chose not to complain. That would have cost another 50 cents.

So he took out some of the money and then decided to pull out the rest. But that made two withdrawals on the same day, and that was $1.50.

For hundreds of thousands of workers losing their jobs during the recession, there’s a new twist to their financial pain: Even when they’re collecting unemployment benefits, they’re paying the bank just to get the money — or even to call customer service to complain about it.

Thirty states have struck such deals with banks that include Citigroup Inc., Bank of America Corp., JP Morgan  Chase and US Bancorp, an Associated Press review of the agreements found. All the programs carry fees, and in several states the unemployed have no choice but to use the debit cards. Some banks even charge overdraft fees of up to $20 — even though they could decline charges for more than what’s on the card.

"They’re trying to use my money to make money," said Santa-Maria, a laid-off engineer who lives just outside Albuquerque, N.M. "I just see banks trying to make that 50 cents or a buck and a half when I should be given the service for free."


Posted at 8:03 PM (CST) by & filed under General Editorial.

My Dear Friends,

Please be advised on the following concerning the Swiss Franc:

1. There is an ongoing battle between the US/GB and Switzerland over the full disclosure of the total 19,000 names on the books of UBS wherein tax evasion is said to have been solicited and abetted. In truth, very few of these accounts have been fully revealed and the US/GB wants all 19,000.

2. Since hedge funds pry on each other we are getting few very fat international hedge funds. They play the currency market in a big way as it is one of the few markets now able to absorb their interest.

As a result of both number one and two much of the media and expert commentary on the Swiss Franc is the use of media for dirty tricks as this is the major tool of these large funds and governments in conflict.

I would suggest in this case decision on the future of the Swiss Franc is better made on the 35 year technical price analysis. A short seeking to cover, which generally seems quite correct now amongst the weak versus dollar units, should and is taking place.

Negative media and short covering has gone hand in hand in this bear market. Was it not the same in all recent major market failures?

Why should currency be any different?


Posted at 5:54 PM (CST) by & filed under General Editorial.

Dear Friends,

We have received over 300 requests so far to attend Jim’s gold presentation in Toronto. As a result, we are cutting off requests for seating effective 3 PM Eastern Standard Time. Anyone that has applied for seating before this cut-off time is welcome to attend. We have no way of telling the exact number of participants so it would be wise to arrive at the hotel a bit early. Meeting particulars are as follows:


Le Royal Meridien King Edward Hotel
Sovereign Ballroom
37 King Street East (Heart of Financial District)
Toronto, Ontario
Phone: (416) 863-9700

Meeting Time:
Thursday, February 26, 2009
12:15 PM to 2 PM (Toronto time)

Posted at 5:52 PM (CST) by & filed under Jim's Mailbox.

Jim and Team,

Yes, OTC derivatives have killed us all; some more than others. Even Paul Volcker can’t escape their deadly grip.

The following quote speaks the awful truth of the human and financial toll on Man, Country and Nations Worldwide:

“One of the saddest days of my life was when my grandson – and he’s a particularly brilliant grandson – went to college. He was good at mathematics. And after he had been at college for a year or two I asked him what he wanted to do when he grew up. He said, “I want to be a financial engineer.” My heart sank. Why was he going to waste his life on this profession?

A year or so ago, my daughter had seen something in the paper, some disparaging remarks I had made about financial engineering. She sent it to my grandson, who normally didn’t communicate with me very much. He sent me an email, “Grandpa, don’t blame it on us! We were just following the orders we were getting from our bosses.” The only thing I could do was send him back an email, “I will not accept the Nuremberg excuse.”
–Paul Volcker

Paul Volcker: The banking world needs more Canadas
Posted: February 17, 2009, 1:15 PM by Kelly McParland

I really feel a sense of profound disappointment coming up here. We are having a great financial problem around the world. And finance doesn’t work without some sense of trust and confidence and people meaning what they say. You take their oral word and their written word as a sign that their intentions will be carried out.

The letter of invitation I had to this affair indicated that there would be about 40 people here, people with whom I could have an intimate conversation. So I feel a bit betrayed this evening. Forty has swelled to I don’t know how many, and I don’t know how intimate our conversation can be. But I will, at the very least, be informal.

There is a certain interest in what’s going on in the financial world. And I will disappoint you by saying I don’t know all the answers. But I know something about the problem. Let me just sketch it out a little bit and suggest where we may be going. There is a lot of talk about how we get out of this, but I think it’s worth remembering, or analyzing, how this all started.

This is not an ordinary recession. I have never, in my lifetime, seen a financial problem of this sort. It has the makings of something much more serious than an ordinary recession where you go down for a while and then you bounce up and it’s partly a monetary – but a self-correcting – phenomenon. The ordinary recession does not bring into question the stability and the solidity of the whole financial system. Why is it that this is so much more profound a crisis? I’m not saying it’s going to get anywhere as serious as the Great Depression, but that was not an ordinary business cycle either.

This phenomenon can be traced back at least five or six years. We had, at that time, a major underlying imbalance in the world economy. The American proclivity to consume was in full force. Our consumption rate was about 5% higher, relative to our GNP or what our production normally is. Our spending – consumption, investment, government — was running about 5% or more above our production, even though we were more or less at full employment.

You had the opposite in China and Asia, generally, where the Chinese were consuming maybe 40% of their GNP – we consumed 70% of our GNP. They had a lot of surplus dollars because they had a lot of exports. Their exports were feeding our consumption and they were financing it very nicely with very cheap money. That was a very convenient but unsustainable situation. The money was so easy, funds were so easily available that there was, in effect, a kind of incentive to finding ways to spend it.


Hey Jim,

I’m sure you’ve seen this by now but just in case you haven’t … enjoy!

Your pal,
CIGA Peter

Click here to see a visualization of TARP…

Posted at 5:51 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

True to their mentor, the Obama Administration moves forward.

“It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something.”
–Franklin D. Roosevelt

Please watch the present method by clicking here…

The result of the $7.5 trillion that entered the world monetary system prior to the election of President Obama is as follows:


The impact of the pork ridden Fiscal Stimulation bill is ambiguous at best. The following programs in the US and GB are relevant to those in the above illustration that have inherited the bailout of Wall Street in the form of a family anvil to be passed from generation to generation.

Bush Gardens

To cope with food shortages and food rationing during World War II, masses of people planted “Victory Gardens.” As America moves into the Greatest Depression, the need to put food on the table will again oblige people to grow their own…


How To Get Your Own Allotment Plot
12:45am UK, Thursday February 19, 2009

It’s healthy, it’s cheap and you could even meet your next dream date – so what’s stopping you from starting up your own allotment?

As the National Trust announces another 1,000 allotment plots, Sky has teamed up with the National Society of Allotment & Leisure Gardener’s Limited to offer the ultimate guide to get you started.

* Don’t lose the plot- there’s currently a waiting list for many allotment plots so don’t waste any time. First port of call could be your local council. Some plots are owned privately and information on where to find them can be found in your local library. The National Trust today announced 1,000 new plots.

* Pay the rent – Rent levels vary from £1 to £70 a year but typically you will be paying around £25 a year for a plot of 250 square metres.

* Play detective – Visit several suitable sites to check whether they have problems with vandalism or trespassers and see whether they seems well-managed. Many sites have active associations which offer their members a trading hut and a members hut for socialising.

* Get competitive – Why not get involved by taking part in allotment competitions and fund-raising events. Taking part means you’ll meet new people – who knows plants may not be the only thing to blossom…


Posted at 2:47 AM (CST) by & filed under General Editorial.

Dear Friends,

Jim Sinclair will be in Toronto for a corporate meeting on February 26th.  Last year immediately after the same corporate meeting, Jim did a presentation on the gold market in a separate venue which was very well attended.

We were recently informed that a meeting hall has become available in Jim’s hotel which was previously fully booked. The meeting room has a capacity for 300 people and Jim has agreed to do a presentation on gold markets for CIGAS on a first come first serve basis. (Our apologies to those who expressed an interest in attending such a meeting in weeks past. We were simply unable to secure a venue for the event until the last minute).

If you are interested in attending this meeting, which at this point will likely be held during the afternoon on February 26th, please send your name and expression of interest to the following email address:

Based on the response, we will decide exact scheduling and provide you with final details by next Monday.

Daniel Duval
JSMineset Editor