Posted at 1:37 PM (CST) by & filed under Jim's Mailbox.


"Colin Powell has made bizarre comments that echo the recent declaration by Democratic VP candidate Joe Biden that there will be an “international crisis” early into Barack Obama’s presidency that will test the new president by forcing him to make unpopular decisions.

Speaking on meet the press two days ago, Powell officially endorsed Obama and also made the following statement:

“The problems will always be there and there’s going to be a crisis which will come along on the 21st, 22nd of January that we don’t even know about right now.”"


I have heard the stories about riot troops being brought into the U.S. , not for release but for active duty here.

I suppose they could’ve been speaking hypothetically, especially with regard to the specific dates given. But thinking further about it, we may conclude that whatever unpopular actions Obama has to take, it would be more politically "correct" to do them quickly, especially because if it is early enough he would be able to justify these drastic actions by trying to correct the catastrophic financial and economical situation the Bush administration has created.



I guess prosecution is out of the question. Perhaps a citizens should attend to the needful. If this, along with everything else, is not guilt beyond reasonable doubt, I don’t know what is.

CIGA Pedro

A Quiet Windfall for US Banks
Monday 10 November 2008
by: Amit R. Paley, The Washington Post

"With attention on bailout debate, Treasury made change to tax policy.

The financial world was fixated on Capitol Hill as Congress battled over the Bush administration’s request for a $700 billion bailout of the banking industry. In the midst of this late-September drama, the Treasury Department issued a five-sentence notice that attracted almost no public attention.

But corporate tax lawyers quickly realized the enormous implications of the document: Administration officials had just given American banks a windfall of as much as $140 billion…

"Did the Treasury Department have the authority to do this? I think almost every tax expert would agree that the answer is no," said George K. Yin, the former chief of staff of the Joint Committee on Taxation, the nonpartisan congressional authority on taxes. "


Posted at 1:24 PM (CST) by & filed under General Editorial.

Dear Friends,

Gold is a currency. Gold is not a commodity. It has always been so. It will always remain so. That will once again be proven an axiom when you look back at this period in time.

Do not throw away your insurance. Protect yourself by distancing yourself from your financial agents. Take delivery of paper shares or become a direct registration book entry at the transfer agent.

If you can afford to, take delivery of both gold and silver from the COMEX.

Now your insurance companies are major risks as they have been gambling in OTC derivatives.

Respectfully yours,

Posted at 8:25 PM (CST) by & filed under General Editorial.

Dear Lie-bor,

We all want to thank you for your excellent demonstration of duty performed for the financial public welfare and donor central banks.

However you might just be pushing a tad too far. It is clear that you are dropping rates so consistently and significantly you intend to go below zero before next Wednesday.

We all know that your quoted rates are your published rates on loans of under $10USD fully backed by $20USD for a term of 12 hours.

Maybe a one day pop up of one basis point would give the entire process some credibility?


Posted at 7:46 PM (CST) by & filed under General Editorial.

Dear CIGAs,

Tax expatriation is the renunciation of US citizenship deemed by the IRS as a move to escape US taxation. You think the US IRS would deem otherwise?

Many of you have called and emailed concerning the subject. The general opinion seems to be that my comment was incorrect. Before making judgments on the subject and the impending changes to the act of 1995 based on, as all things seem to be, 9/11 (to become effective 01/1/09), please consult the following:

Taxation Expatriation: Will the Fast Act Stop Wealthy Americans From Leaving The United States?
by BG Cantley

File Format: PDF/Adobe Acrobat

(A) any United States citizen who relinquishes citizenship, and …… The individual expatriate proposal would replace current law on a prospective …


Posted at 3:31 PM (CST) by & filed under General Editorial.

Dear CIGAs,

Herbert and Bunker, where are you when we need you?

Maybe Chung Phat and Dr. No would be interested.

Taking Delivery of Silver and Gold from the COMEX Warehouse Into Personal Custody:

If you are tired TODAY of being had by paper gold the following is the only course of action that takes a positive step to end the games being played at your expense.

Delivery Process for Gold or Silver:

Delivery – Prudential holds the receipt in PFG’s account for customer

  1. 1. Client buys the futures contract.
    2. Client will take delivery between First Notice Day and the Last Trading Day.
    3. On delivery day account is debited cost plus a $50.00 delivery fee.
    4. Receipt is booked to customers account
    5. Monthly storage charge passed on to customer’s account(about $50.00).

Physical Delivery – Customer wants bars in their procession

1. Client buys the futures contract.
2. Client will take delivery between First Notice Day and the Last Trading Day.
3. On delivery day account is debited cost plus a $50.00 delivery fee.
4. We will provide the customer with name and phone number of the individual at the depository to contact.
5. Customer makes arrangements for the physical delivery

CIGA JB Slear, who is in the commodity business, offers his services to assist anyone seeking physical delivery of metals. He will guide you through the entire process, including arrangements for delivery.

To be totally clear, I expect JB not to discuss any type of speculation with you but ONLY help you acquire 100 ounce gold bars. Once 21,000 bars have been taken the paper gold’s reign over the price of gold is over.

CIGA JB Slear can be reached at the following:

Fort Wealth Trading Co. LLC
ext 104

Posted at 3:24 PM (CST) by & filed under Jim's Mailbox.

Dear Jim,

The Queen of England does not look happy. Are we entering the perp walk phase of the derivative meltdown?

Ciga Ken

Queen baffled at delay in spotting credit crunch
November 6, 2008 – 8:41AM


Queen Elizabeth has been given an academic briefing on the origins of the credit crunch and wound up the "lesson" by asking why nobody had seen the crisis coming.

The 82-year-old monarch had the complexities of the current global financial crisis explained to her during the inauguration of a new building at the renowned London School of Economics (LSE).

The origins and effects of the crisis were explained to her by Professor Luis Garicano, director of research at the LSE’s management department, the Press Association reported.

Prof Garicano said afterwards: "The Queen asked me: ‘If these things were so large, how come everyone missed them? Why did nobody notice it’?"

When Garicano explained that at "every stage, someone was relying on somebody else and everyone thought they were doing the right thing", she commented: "Awful."


Dear Ken,

The reason it will probably not happen is because you would have to arrest every international investment bank in the entire world, all their clients and half of both of their staff. After that the Federal Reserve would arrest past Chairmen followed by the Fed arresting itself.

The way the perp walk might happen is if someone really angry who has no clue how pervasive the OTC derivative scam is, like the Queen, demanded a criminal investigation by non-financial incorruptible criminal judges.

Who knows, it could happen.


Dear Mr. Sinclair,

I decided to visit this morning to review the market news. Here is what I found. This appears very ugly for the US dollar and wildly bullish for gold.


AIG Bailout Swells to $150 Billion as Insurer Reports Fourth Straight Loss
U.S. Stock Futures Rise on China Stimulus Plan, G-20 Call for Lower Rates
Fannie Mae Posts Record $29 Billion Quarterly Loss After Asset Writedowns
Gendell, Scholes Are Losers as Hedge Funds Slide for Fifth Straight Month
Believing in Estimates Means S&P 500 Rallies Record 20% Before 2008 Closes
Circuit City Files for Bankruptcy Amid Competition From Best Buy, Wal-Mart
Deutsche Post Will Eliminate 9,500 More Jobs in U.S., Scale Back DHL Unit
Fed Refuses to Identify Recipients of $2 Trillion Emergency Loans to Banks
Russia Probes Nuclear Submarine Accident in Pacific That Killed 20 People

Dear Marc,

Yes, this and much more is coming at the technical money flow that has created this bear market dollar rally.


Posted at 3:12 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Thank God for those that stand on the wall while we sleep and who risk their lives in order to protect us. Their only reward is a white star on a black wall with a year as the header but no name. Thank you and rest well.

Two alleged U.S. spies killed in Pakistan`s tribal region
Posted: 2008/11/10

Suspected militants have killed men accused of spying for the United States in Pakistan’s tribal region of North Waziristan, local tribesmen said Saturday.

Two bullet-ridden bodies of Afghan nationals were found at Dargah Mandai area near the border area in North Waziristan on Saturday, they said.

A note in the native Pashto language found near the body of the slain men, said that they were spying for the United States and Afghan government.

The note warned that anyone spying for the U.S. or Afghanistan would face the same situation.

Militants are blamed for attacking people suspected of spying for the U.S. or Pakistani authorities in the region, which borders Afghanistan, and where al Qaeda- and Taliban-linked militants operate.


Jim Sinclair’s Commentary

The complex OTC derivative situation is now becoming something akin to the Japanese sci-fi of the 1970s titled "The Green Blob that Ate the Earth." No wonder her Majesty is inquiring with legal authority. As Queen, she still might have the power to order, "off with their heads!" Since her present wealth is primarily in real estate and that is what she got hit for, is it possible for a Queen to be homeless?

Sweden seizes Carnegie in first bank bail-out
Sweden’s government is to seize control of Carnegie after the 200-year-old investment bank took "exceptional risks" with client money and breached trading rules.
By Ambrose Evans-Pritchard
Last Updated: 7:15PM GMT 10 Nov 2008

Mats Odell, the financial markets minister, said the state had opted to save Carnegie by providing a 5bn Kronor (£450m) state loan rather than let it go bankrupt in order prevent a fire-sale of assets and to shore up the financial system at a delicate moment.

"Carnegie is important: there could be significant problems for households and companies if we jeopardise the stability of the financial system," he said.

It is the first Swedish bank to require a bail-out since the credit crisis began, but there are mounting concerns over the health of Swedbank, SEB, and other lenders with heavy exposure to the Baltic states. Swedish banks have lent the equivalent of 25pc of the country’s GDP to Eastern Europe.

The debt office said it had revoked Carnegie’s trading licence and ousted the entire board,


Jim Sinclair’s Commentary

Here is the news that counts. Here is where your focus should be.

The Fed is dragging its feet hard to keep the type and kind of SIVs they have taken as collateral from bankrupt institutions secret. The reason is simple. If they are total junk (and they probably are) the balance sheet of the Fed would be creamed. This would make Treasury instruments anything but totally creditworthy. It would make it much harder to borrow money, would break the 30 year bond and cream the dollar. It is coming one way or another.

U.S. to Borrow Record This Quarter to Finance Deficit
November 03, 2008

Nov. 3 (Bloomberg) — The U.S. Treasury more than tripled its planned debt sales for this quarter to help finance a 2009 budget deficit that bond dealers advising the department estimate may swell to almost $1 trillion.

Borrowing needs are expected to rise to $550 billion in the three months to Dec. 31, compared with the $142 billion predicted in July, the Treasury said in a statement in Washington. That follows a $530 billion record in the July-September quarter.

The worsening credit crisis and sluggish economy are straining the country’s finances and will leave the winner of tomorrow’s U.S. presidential election facing the worst budget shortfall on record next year. The Treasury is scheduled to announce in two days plans to expand debt sales to fund the gap.

“The U.S. Treasury faces an unprecedented financing need,” said Goldman Sachs analyst Ed McKelvey, echoing a similar comment last week by Anthony Ryan, the Treasury’s acting undersecretary for domestic finance.


Jim Sinclair’s Commentary

Judging from the G-20 meeting, I would assume the new Bretton Woods conference will discuss fiscal stimulation and how to pump more funds into the system.

TABLE-Key facts about G20 members
11.10.08, 10:31 AM ET

Argentina – Nov 10 (Reuters) – Following are some key details about the G20 countries plus Spain, a membership aspirant:


(mln, 2007) ($bln, 2007) ($ bln, latest)

* Argentina: 39.5 262.33 47.1
* Australia: 21.01 821.72 27.6
* Brazil: 191.6 1,314.17 205.1
* Canada: 32.98 1,326.38 41.1
* China: 1,319.98 3,280.05 1,808.8
* France: 61.71 2,562.29 144.8
* Germany: 82.27 3,297.23 153.0
* India: 1,123.32 1,170.97 295.3
* Indonesia: 225.63 432.82 54.5
* Italy: 59.37 2,107.48 104.5
* Japan: 127.77 4,376.70 996.7
* Mexico: 105.28 893.36 77.1
* Russia: 141.64 1,291.01 582.2
* Saudi Arabia 24.20 381.68 34.1
* South Africa 47.59 277.58 243.3
* South Korea 48.53 969.79 240.3
* Spain 44.88 1,429.23 13.8
* Turkey 73.89 657.09 79.1
* United Kingdom 61.03 2,727.81 72.1
* United States 301.62 13,811.20 72.5