Posted at 10:25 PM (CST) by & filed under Jim's Mailbox.

Dear Jim,

Of all your teachings this may be the most important.

You’re the Best


Posted at 10:22 PM (CST) by & filed under General Editorial.

Dear Friends,

Having secured your finances by insuring them with gold and distancing your assets from your financial agents to the greatest degree possible, there comes one more task that you should put some thought into: securing yourself.

There is no question at all that as the jobless rate rises, civil disorder will begin to manifest itself in society.

No matter if you live in NYC or in Flat, Alaska it would behoove everyone to review and improve their home security. You have nothing to lose by being objective. Here are a few ways to achieve a high level of home security:

(1) Install an external intercom so you can talk with people coming to your home without unlocking or opening the door. Itinerant door knockers don’t need to see you or have personal contact with you nor do they need to see inside your home. Door-to-door solicitors, like telemarketers, need to be politely but abruptly, dismissed. Provide them with no information!

(2) Electronic security: Don’t buy a cheap system. It costs several thousand dollars for a competent, monitored system. Once installed, use it! It needs to be activated every night and every time you leave the house. Make it personal policy!

(3) Dogs serve many purposes, the first of which is companionship without conditions. Even a total wimp like Mr. Freddie (my wife’s legacy to me) can raise the alarm when required. Mia not only raised the alarm but also the roof and walls. She chased Victoria’s kids out of my office. She bit my African daughter which made me remind her, like it or not, that Mia is the family dog and her action might be a comment on how often Marlene is home.

Of course, I am kidding. Mia was very sternly reprimanded for that one. Mia was a tough situation as I loved her dearly, but she felt her duty was to protect me from everything and everybody. This is why Barbara changed her name from "Mia" to "My Damn Dog." In sum, Mia fulfilled her self appointed duty by being one mean b—h, (referred to as a female of her species).

(4) If you live like I do in a rustic and somewhat isolated area, then metal detectors at all entrances are a good option. They make excellent wireless systems that now transmit 1,250 feet to the receiver. You can obtain tunes for different entrances.

(5) Automatic perimeter lighting that is triggered either by laser interruption or infrared is also an option to consider. Also, very cheap devices are available now.

Spend no less than 2 1/2 percent of your liquid net assets on home protection, electronics, communication and power generation. Even a small Honda portable generator on the porch of a metropolitan apartment – legal or not -will come in handy when you need it.

Then pray all this is totally unnecessary.

Posted at 2:02 PM (CST) by & filed under In The News.

Dear Friends,

For the past many years I have been telling you that if you don’t have private assets do not try and obtain them. Certainly do not use any internet means of finagling because you risk two problems – getting caught and having your money stolen simultaneously. The "deposit your money with an internet vehicle and have gold appear in another country" vehicle is inviting only to the terminally gullible.

"Citing pressure from U.S. federal authorities, Swiss mega-bank UBS said yesterday it will close 19,000 accounts that the IRS believes to be tax havens for American investors. The bank will write checks for the balances in house, or transfer them to other accounts… either way creating a paper trail for IRS hounds to follow.

“You can either take that check,” an anonymous UBS client told The N.Y. Times, “and throw it in the woods, or deposit it somewhere and get busted. There’s nowhere to hide.”"

According to the IRS, UBS is helping American investors evade around $300 million in taxes each year. You can bet your last dollar, if you’ve got any left, UBS won’t be the last target of IRS probes.



Jim Sinclair’s Commentary

It is good to get business finished before going home?

Bush Prepares to Ask for Second Tranche of Bailout Funds
If Congress Fails to Approve Request, Administration May Use Veto Power
By David Cho and Lori Montgomery
Friday, January 9, 2009; 6:17 PM

Senior Bush administration officials are preparing to ask lawmakers for the second half of the $700 billion financial rescue package despite intense opposition in Congress and then have President Bush use his veto if the request is voted down, three sources familiar with the matter said.

The initiative, which is being coordinated with the Obama transition team, may be taken within days, the sources said, speaking on condition of anonymity because no announcement has been made.

Democratic Senate aides were notified in a meeting this afternoon that the request could come as soon as this weekend and that a vote could be held as soon as next week, congressional sources said.

Under the emergency rescue legislation approved by Congress in October, the administration must inform lawmakers that it wants access to the second installment of $350 billion. Unless Congress passes a resolution rejecting the request within 15 days, the Treasury can begin to tap the funds. If Congress does turn down the request, the president could veto the resolution and then the Treasury could proceed.

The plan now being crafted by the Bush administration is not finalized. By unsheathing the veto threat, the Bush administration could make it more likely that the Obama administration would get the rest of the rescue funds. Only if Congress overrides the veto would the money be blocked. A congressional source said advocates of the plan are now exploring whether there are enough votes in the Senate to override a veto.

"There have been discussions between the administration and the transition about how to proceed should the president-elect determine that he wants to have those funds available on January 20th," said Robert Gibbs, spokesman for the Obama transition team. "No final decisions have been made, but we want to be ready to act if needed."



Jim Sinclair’s Commentary

1. Israel makes a significant miscalculation.
2. Pakistan goes Nuclear.
3. Turkey is a victim.

The Worst Pakistan Nightmare for Obama
(Excerpts from article)

“I have two worries,” one of the most senior officials in the Bush administration, who had read all of the intelligence with care, told me one day last spring. One is what happens “when they move the weapons,” he said, explaining that the United States feared that some groups could try to provoke a confrontation between Pakistan and India in the hope that the Pakistani military would transport tactical nuclear weapons closer to the front lines, where they would be more vulnerable to seizure. Indeed, when the deadly terror attacks occurred in Mumbai in late November, officials told me they feared that one of the attackers’ motives might have been to trigger exactly that series of events.

“And the second,” the official said, choosing his words carefully, “is what I believe are steadfast efforts of different extremist groups to infiltrate the labs and put sleepers and so on in there.”


Jim Sinclair’s Commentary

Turkey today. What starts as a trickle can end up as a deluge.

Support for Turkey’s AKP falls sharply ahead of Istanbul bi-election clip_image002

Support to Turkey’s ruling Justice and Development Party (AKP) fell sharply in the Istanbul mayoral elections, a poll conducted ahead of the March local elections showed on Friday. The support to the AKP fell to 29.4 percent from 45.3 percent since the local elections in 2004, the poll said.

The support to the AKP fell to 29.4 percent from 45.3 percent since the local elections in 2004, the ANKA News Agency reported citing a poll conducted by the Political Researcher Strategy Development Center.

The poll showed that support to the main opposition Republican People’s Party (CHP) fell slightly to 25.9 percent from the 28.9 percent achieved in past elections in Istanbul.

The Islamist Felicity Party (SP) increased its votes to 8.9 percent from 5.38 percent, it said. SP has organized anti-Israel protests in Istanbul, attended by hundreds of thousands, since the Jewish state’s offensive on Gaza began.

Support to the opposition Nationalist Movement Party (MHP) was 5.5 percent, according to the poll. The nationalist party gained 4.1 percent of votes in the 2004 elections.


Posted at 7:50 PM (CST) 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 at 7:45 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Credit card companies are soon going to be putting organized crime out of the loan shark business.

British Airways credit card is UK’s most expensive – after hiking interest charge to 46%
By Sri Carmichael
Last updated at 10:33 AM on 09th January 2009

American Expess has increased the cost of borrowing on one of its credit cards to 46 per cent — more than 30 times the Bank of England base rate.

The company now charges 46 per cent APR on the British Airways Premium Plus card, making it Britain’s most expensive credit card.

Consumer groups said the cost of borrowing on some credit cards had now lost all touch with the base rate.

A series of other cards also have APR over 35 per cent — despite interest rates now being at the lowest level since the Bank of England was set up in 1694.

Other cards include Virgin Money American Express at 37 per cent and Citi MasterCard at 41 per cent.


Jim Sinclair’s Commentary

Turkey today, victim tomorrow?

Turkey’s army boss meets PM, president amid tension
Thu Jan 8, 2009 4:49pm GMT
By Ibon Villelabeitia

ANKARA, Jan 8 (Reuters) – Turkey’s military chief met Prime Minister Tayyip Erdogan and President Abdullah Gul on Thursday as tensions rose in the EU candidate in the wake of a probe into an alleged plot to topple the Islamic-rooted government.

News of the meeting, a day after Turkish police detained about 40 people including three retired generals and active military officers for their suspected links to a right-wing group, added to financial woes in Turkey, which has been hit by the global financial crisis.

In a terse statement, the General Staff said the separate talks between armed forces commander General Ilker Basbug, Erdogan and Gul had centred on Wednesday’s detentions.

The military, which has unseated four governments in the last 50 years and views itself as the guarantor of Turkey’s secular order, denies any link to the group, known as Ergenekon.


Government in Turkey turns squeamish on defense ties with Israel

ANKARA — The increasingly Islamist leadership in Turkey has been placed on the defenseive by the parliament over extensive defense relations with Israel.

The government of Prime Minister Recep Erdogan has denied signing weapons deals with Israel during its invasion of the Gaza Strip, following condemnations of the Jewish state.

"There are no contracts or agreements in the time being with the Israeli side," Turkish Defense Minister Vecdi Gonul said.

Gonul and other senior officials have been questioned by parliament over reports of an Israeli-Turkish defense project, Middle East Newsline reported. Under the reported $160 million deal, Israel would supply airborne reconnaissance systems to Turkey’s military.



Jim Sinclair’s Commentary

Oh my goodness, no.

Treasury’s Oversight of Bailout Is Faulted
Published: January 9, 2009

In a report scheduled to be released Friday, the Congressional panel overseeing the $700 billion federal bailout has expressed growing concern about the effectiveness and execution of the rescue plan.

A draft of the report obtained by The New York Times criticized the Treasury Department for its “shifting explanations” about the underlying purpose of the bailout, its failure to answer many of the panel’s questions and its failure to require financial institutions receiving bailout money to fully account for how they are using the public’s money.

“The recent refusal of certain private financial institutions to provide any accounting of how they are using taxpayer money undermines public confidence,” the draft of the report said. “For Treasury to advance funds to these institutions without requiring more transparency further erodes the very confidence Treasury seeks to restore,” it said.

The 45-page report also asserted that the Treasury, in defiance of what the panel claimed was Congress’s clear intent when it passed the bailout bill in October, had taken “no steps to use any of this money to alleviate the foreclosure crisis.”

The Treasury declined to comment on the panel’s latest findings, with the bailout, known as the Troubled Asset Relief Program, or TARP. “We can’t comment on a report that’s not been shared with us,” said Brookly McLaughlin, a spokeswoman for the Treasury.



Jim Sinclair’s Commentary

1. Israel makes a miscalculation.
2. Pakistan goes nuclear.
3. Turkey is a victim.

Turkish police detain dozens in coup plot probe
By SELCAN HACAOGLU – 1 day ago

ANKARA, Turkey (AP) — Police detained three retired generals and dozens of others in raids across Turkey on Wednesday, as they broadened their investigation into an alleged plot by secularists to overthrow Turkey’s Islamic-rooted government.

In was the 10th time in more than a year that police have targeted prominent secularists, who are accused of trying to destabilize Turkey with a string of attacks ahead of a coup that was never carried out.

Eighty-six people — including former army officers, journalists, a former university dean and a lawyer — already are on trial in the case. They have pleaded innocent and accuse Prime Minister Recep Tayyip Erdogan’s government of attempting to silence secular critics.

The case is widely perceived as being part of a power struggle between Turkey’s secular establishment, including parts of the military, and the democratically elected and religiously conservative government. It also has raised concerns about political instability in Turkey, a country that has endured the ouster of four governments by the military since 1960.

Turkey’s state-run Anatolia news agency said nearly 40 people were detained during Wednesday’s police raids, and local media said the suspects were taken into custody at homes and offices in about a dozen cities or towns. Police confirmed the raids, but provided few details.


Posted at 2:58 PM (CST) by & filed under General Editorial.

Short Sellers, Legal, Illegal and Pool Managed Seek Legal Protection From Market Risks of Their Actions

Dear CIGAs,

1. Will regulators support their despicable request?
2. Longs must disclose their positions above defined levels of ownership.
3. Will shorts be permitted to DESTROY from behind regulator-protected secrecy that is practically risk free?
4. Regulators in USA, Australia & GB to reveal shortly if they support the equity carnage and may well have and continue to engineered it.
5. If regulators protect the secret activities of the hedge funds from law demanding transparency, as longs must provide, then regulators are behind the degree of the CARNAGE from financials to industrials.

Fight, or be a damn lazy, worthless, coward!

1. Email every Bloomberg, Reuters, Financial Times, Herald Tribune, Chinese publication, Russian publication, CNN, CNBC, Aljazera and all news wire reporters (their email addresses are at the bottom of every article written).
2. Email every gold and silver writer because as a group they would take your money and moan daily without taking any action at all.
3. Email every company your are invested in of whatever kind telling management to get off their worthless asses, and get into the fight.
4. Call your elected representatives.
5. Email the regulators by going to their respective web sites and use the “contact us” buttons.
6. Scream holy murder, rape, theft and pillage.

“Let’s hire Greg Hunter as our Lobbyist for Fair Play”

Monty says and only says:

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 fund industry.

Respectfully yours,

Monty Guild

Posted at 7:27 PM (CST) by & filed under Guild Investment.

Dear CIGAs,

As has been obvious from media releases by Chinese officials in the last 3 weeks, the Chinese continue to hint and state that they will not buy as much US debt in the future. This fact is finally dawning on more and more currency investors. When will it dawn on US treasury bond investors? If there was ever a bubble may I submit that the US Treasury bond market is a huge and unwieldy bubble waiting to implode.

Respectfully yours,

Monty Guild

China Is Losing Its Taste for U.S. Debt
Published: January 7, 2009

HONG KONG — China has bought more than $1 trillion of American debt, but as the global downturn has intensified, Beijing is starting to keep more of its money at home, a move that could have painful effects for American borrowers.

The declining Chinese appetite for United States debt, apparent in a series of hints from Chinese policy makers over the last two weeks, with official statistics due for release in the next few days, comes at an inconvenient time.

On Tuesday, President-elect Barack Obama predicted the possibility of trillion-dollar deficits “for years to come,” even after an $800 billion stimulus package. Normally, China would be the most avid taker of the debt required to pay for those deficits, mainly short-term Treasuries, which are government i.o.u.’s.

In the last five years, China has spent as much as one-seventh of its entire economic output buying foreign debt, mostly American. In September, it surpassed Japan as the largest overseas holder of Treasuries.