Posted at 8:18 PM (CST) by & filed under In The News.

Dear Friends,

Please watch the following video of the Pakistani Taliban threatening a massive attack on the White House in Washington, DC.

http://www.washingtonpost.com/wp-dyn/content/story/2009/03/31/ST2009033101628.html

Jim Sinclair’s Commentary

More help for the dollar from one of its Friends

Chavez to seek Arab backing for `petro-currency’
By BRIAN MURPHY, Associated Press Writer 

DOHA, Qatar – Venezuelan President Hugo Chavez sought Arab support Tuesday for a proposed oil-backed currency to challenge the U.S. dollar in his latest swipe at Washington’s dominance in global financial affairs.

It’s highly unlikely Chavez will gain any serious momentum for his "petro-currency" proposal at a summit of South American and Arab League leaders, but it represented another attempt to undercut the dollar’s standing as the world’s leading commercial currency.

China has struck deals — most recently this week with Argentina — to conduct trade in currencies other than the dollar. Iran has proposed replacing the dollar with the euro or other currencies to set worldwide oil prices.

Chavez plans to visit both Iran and China following the one-day Qatar gathering, whose agenda focuses on trade issues but also touches on Arab worries about rival Iran’s growing influence in Latin America.

Key oil-producing members of the Arab League, such as Saudi Arabia and Gulf states, have close ties to Washington and will almost certainly reject any plan to shun the dollar. But the summit kicks off another high-profile foreign trip for Chavez in his efforts to build economic and diplomatic links to confront the United States.

More…

 

Jim Sinclair’s Commentary

It can get lonely when holding onto your gold lifeline as the propaganda, lies and misinterpretations are thrown at you from every corner.

Remember, all of us at JSMineset stand with you. You are not alone.

http://vimeo.com/moogaloop.swf?clip_id=2539741

Jim Sinclair’s Commentary

Guess Who Did It?

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Jim Sinclair’s Commentary

Tell these people that the economy has bottomed.

ADP Says U.S. Companies Reduced Payrolls by 742,000 (Update2)
By Bob Willis

April 1 (Bloomberg) — Companies in the U.S. cut an estimated 742,000 workers in March, pointing to no relief in sight for the labor market amid the longest recession in seven decades, a private report based on payroll data showed today.

The drop in the ADP Employer Services gauge was larger than economists forecast and the most since records began in 2001. February’s reading was revised to show cut of 706,000 workers, up from a previous estimate of 697,000.

Companies are slashing staff as tight credit conditions and shrinking household wealth cause sales to shrink. The Labor Department may report in two days that employers cut payrolls in March for a 15th consecutive month, putting jobs losses in the current downturn at more than 5 million, according to a Bloomberg survey.

“The weakness is distributed across all components of the economy,” Joel Prakken, chairman of Macroeconomic Advisers LLC in St. Louis, said in a conference call. “We are going to see several more months of serious bleeding before we see lesser job losses.”

The ADP report was forecast to show a decline of 663,000 jobs, according to the median estimate of 30 economists in a Bloomberg News survey. Projections were for decreases ranging from 525,000 to 750,000.

More…

Jim Sinclair’s Commentary

So very few have given consideration to the geopolitical domino effect Pakistan’s transmission to Taliban control infers:

Insurgents threaten Pakistan’s ‘existence’: US general

WASHINGTON (AFP) — Islamist insurgents pose a growing threat not only to Afghanistan but to Pakistan’s "very existence," the commander of US forces in the region, General David Petraeus, said on Wednesday.

"The Pakistani military has stepped up operations" against the militants but more action was needed, Petraeus told the Senate Armed Services Committee.

Taliban and Al-Qaeda-linked groups based near the Afghan border represent "an ever more serious threat to Pakistan’s very existence," he said.

The chief of US Central Command said "the situation in Pakistan is closely linked to that of Afghanistan" and praised a new strategy unveiled last week by President Barack Obama for the Afghan war as a "comprehensive" approach.

Describing the challenges of the US mission in Afghanistan, Petraeus said there would be no quick victory and that it would require "a sustained substantial commitment" after more than seven years of war.

More…

Jim Sinclair’s Commentary

My answer is absolutely no. No, because there is no recovery to blot out in the first place. This recovery is a statistical construct at this point.

Will the Dark Cloud of Commercial Real Estate Blot Out the U.S. Recovery?
[Editor’s Note: This is the first of a two-part look at how the U.S. real estate market will affect the nation’s economic recovery. Today’s focus: Commercial real estate. Next week: The residential rebound.]
By William Patalon III
Executive Editor
Money Morning/The Money Map Report

Stock prices have rallied for much of last month. The housing market has shown some early signs of life. And some of the latest economic reports haven’t been the disasters that many experts feared.

While this is hardly a portrait of an economy on a roll, there are enough bright spots to nurture a feeling that the U.S. economy is finally on a path to recovery – especially given the upbeat response the latest elements of the Obama administration’s fix-it plans have received.

But there’s a dark cloud in this picture. And it’s big – big enough, in fact, to potentially finish off the U.S. banking sector, blotting out the U.S. economy’s new dawn.

That dark cloud is the commercial real estate sector. With rent prices falling and vacancies rising due to the recession-weakened economy, delinquencies on commercial mortgages are already escalating steeply.  And the credit crunch bred from the recession is often making it impossible for property owners to avoid deeper trouble by refinancing.

"It’s a one-two punch combination: First, soaring vacancies take the wind out of positive cash flow; then the credit crisis hits like a rabbit punch, snapping off the main arteries to refinancing," says Money Morning Contributing Editor Shah Gilani, a retired hedge-fund manager and expert on the U.S. credit crisis who predicted the implosion of the commercial real estate sector several years ago. "This is like Samson hitting the ground. The giant asset class we call commercial real estate is not going to get up any time soon."

More…

Jim Sinclair’s Commentary

Home sales:

Keep in mind that when a home is foreclosed on it shows as a sale of that home due to the deed transfer. A foreclosure of a partially or fully completed building project will book as the sale of a new home as the product of a deed transfer of a home not resided in. Bank liquidations at auction of either will show as a sale of that home again due to the deed transfer according to definition of the deed.

Don’t expect this definition when homes sales are released.

 

Jim Sinclair’s Commentary

There was a time I wrote off the Russian professor’s prediction that the US would break down into separate independent groups of states. I still do, but with less intensity because I have to admit that there are currents right now of Rebellion against Washington.

The pushback against federal power began under Bush, but may now be accelerating.
By Patrik Jonsson | Staff writer of The Christian Science Monitor
from the March 27, 2009 edition

Atlanta – There’s an old joke in South Carolina: Confederate President Jefferson Davis may have surrendered at the Burt-Stark mansion in Abbeville, S.C., in 1865, but the people of state Rep. Michael Pitts’s district never did.

With revolutionary die-hards behind him, Mr. Pitts has fired a warning shot across the bow of the Washington establishment. As the writer of one of 28 state "sovereignty bills" – one even calls for outright dissolution of the Union if Washington doesn’t rein itself in – Pitts is at the forefront of a states’ rights revival, reasserting their say on everything from stem cell research to the Second Amendment.

"Washington can be a bully, but there’s evidence right now that there are people willing to resist our bully," said Pitts, by phone from the state capitol of Columbia.

Just as California under President Bush asserted itself on issues ranging from gun control to medical marijuana, a motley cohort of states – from South Carolina to New Hampshire, from Washington State to Oklahoma – are presenting a foil for President Obama’s national ambitions. And they’re laying the groundwork for a political standoff over the 10th Amendment, which cedes all power not granted to Washington to the people.

The movement’s success will largely depend on whether Washington sees these legislative insurgents as serious – or, as Pitts puts it, as just "a bunch of rednecks."

More…

 

Jim Sinclair’s Commentary

I like the slogan of the demonstrators. April 1st is Financial Fools Day. Seems appropriate…

The G20 protests in central London turned violent today ahead of tomorrow’s summit, with a band of demonstrators close to the Bank of England storming a Royal Bank of Scotland branch, and baton-wielding police charging a sit-down protest by students.

G20 protests: riot police clash with demonstrators

Much of the protesting, from an estimated 4,000 people in the financial centre of the capital, was peaceful, but some bloody skirmishes broke out as police tried to keep thousands of people in containment pens surrounding the Bank of England on Threadneedle Street.

A minority of demonstrators seemed determined to cause damage, seeking confrontation as they surged towards police lines. Late tonight, much of the City remained cordoned off.

By about 8pm, running battles between riot police and demonstrators were taking place across London Bridge. Bottles, sticks and bricks were thrown.

Nearer the heart of the City, police moved in to break up a ‘climate camp’ on Bishopsgate, with baton-wielding officers said to be pushing through a line of tents and bicycles. At least five armoured police vehicles were also at the scene.

More…

Posted at 2:58 PM (CST) by & filed under Jim's Mailbox.

Hey Jim,

You posted a link: Click here to view the link… 

ADP is wildly inconsistent, but Challenger, Grey, and Christmas Announced Layoffs time series is not. Announced layoffs grew 103% year-over-year (YOY) in March. This growth rate represents only a slight downtick from the December 2008 high of 132% YOY. Announced layoffs are soaring. This means it will be increasingly difficult for the birth/death model to hide the magnitude of the job loss.

Regards,
CIGA Eric

Dear Mr. Smith,

Thank you for your comment on the uptick rule. The Commission has announced that it will consider proposals relating to short sale price tests at an open meeting scheduled for April 8, 2009. The meeting will be webcast from the SEC’s website at www.sec.gov/news/openmeetings.shtml.

Should the Commission vote to publish a proposal for comment, a comment file for the rulemaking will be created once the proposal is published by the Commission. Your comment will be placed in that file.

Sincerely,

RICHARD G SUGARMAN
Office of Investor Education and Advocacy
U.S. Securities and Exchange Commission
(202)551-6551

Jim,

Only a fool would be without physical Gold in hand now with so many geopolitical challenges and paper currency’s hollow value.

Regards,
CIGA Pedro

"In an interview conducted shortly before he was sworn in today as prime minister of Israel, Benjamin Netanyahu laid down a challenge for Barack Obama. The American president, he said, must stop Iran from acquiring nuclear weapons—and quickly—or an imperiled Israel may be forced to attack Iran’s nuclear facilities itself."

More…

Dear Green Hornet,

The key to the transmission of latent money creation such as the payment to AIG in bailouts which moves into AIG from bailout schemes out the back door to winners on the toxic OTC derivatives is velocity of money. As velocity of money increases, the latent M3 becomes present time M3.

Normally it takes a recovery in business activity to stimulate the Velocity of Money, which is an engine of inflation price wise.

These are not normal times.

Never has any government dared to create in one year monetary inflation equal to the GDP of that country. This is going to be an accomplishment of the USA in this year.

Every hyper-inflation that has ever occurred has happened when Velocity of Money was stimulated by a loss of confidence in the currency unit in the midst of a period of horrid business activity.

This is what will bring hyperinflation to the US dollar and price inflation in the midst of a deflationary depression. There is no means to drain this liquidity regardless of what the Fed would have you believe. There is no exit on this Highway to Hell as the president of the EU labelled it.

From Wikipedia:

* M0: The total of all physical currency, plus accounts at the central bank that can be exchanged for physical currency.

* M1: The total of all physical currency part of bank reserves + the amount in demand accounts ("checking" or "current" accounts).

* M2: M1 + most savings accounts, money market accounts, retail money market mutual funds,and small denomination time deposits (certificates of deposit of   under $100,000).

* M3: M2 + all other CDs (large time deposits, institutional money market mutual fund balances), deposits of eurodollars and repurchase agreements.

When the Federal Reserve announced in 2005 that they would cease publishing M3 statistics in March 2006, they explained that M3 did not convey any additional information about economic activity compared to M2, and thus, had not been used in determining monetary policy for years. Therefore, the costs to collect M3 data outweighed the benefits the data provided.[12] Some politicians have spoken out against the Federal Reserve’s decision to cease publishing M3 statistics and have urged the U.S. Congress to take steps requiring the Federal Reserve to do so. Congressman Ron Paul claimed that "M3 is the best description of how quickly the Fed is creating new money and credit. Common sense tells us that a government central bank creating new money out of thin air depreciates the value of each dollar in circulation."[17] Some of the data used to calculate M3 are still collected and published on a regular basis.[12] Current alternate sources of M3 data are available from the private sector[18].

More…

Regards,
Jim

Dear Jim,

A lot of people think there will be a recovery. They also think it can’t get any worse!

Banks walking away from foreclosures are pretty serious. My heart bleeds for these people losing all they own…

You have been warning people since 2002 to be defensive, get rid of debt and buy physical gold! Too bad more did not listen. I fear buying right now is like catching a falling safe!

Best,
CIGA BT

Banks Starting to Walk Away on Foreclosures
By SUSAN SAULNY
Published: March 29, 2009

SOUTH BEND, Ind. — Mercy James thought she had lost her rental property here to foreclosure. A date for a sheriff’s sale had been set, and notices about the foreclosure process were piling up in her mailbox.

Ms. James had the tenants move out, and soon her white house at the corner of Thomas and Maple Streets fell into the hands of looters and vandals, and then, into disrepair. Dejected and broke, Ms. James said she salvaged but a lesson from her loss.

So imagine her surprise when the City of South Bend contacted her recently, demanding that she resume maintenance on the property. The sheriff’s sale had been canceled at the last minute, leaving the property title — and a world of trouble — in her name.

More…

Posted at 2:55 PM (CST) by & filed under Trader Dan Norcini.

Dear CIGAs,

There really is not a whole lot to say today about gold. It is like watching paint dry.  Rangebound trade continues to be the order of the day with $940 the top and $920 the bottom within a broader range of $960 and $900.

The case is different for the mining shares however. They are attempting to push on up to test the recent swing highs in both the HUI and the XAU. Both indices are trading above their respective 10 day moving averages which is friendly with the 20 day making a bullish upside crossover of the longer term 40 and 50 day moving averages. AS I said yesterday, it is still unclear if the shares are leading the bullion price and portending a move higher in it or are moving in tandem with the broader equity markets which have rebounded into positive territory here as I write these comments. How they act near those recent swing highs will be critical to the future technical prospects. The HUI actually now has the stronger looking chart of the two.

Gold deliveries for April were pretty impressive today, the second day of the process, with a total of 1,441 contracts taken. That brings the total so far to 10,308 contracts or a bit over 1 million ounces so far. This is a nice pace and if it can be pushed on up to the 1.5 million mark, it will get the attention of the perma shorts. Open interest remaining in the April contract is a bit over 7,000 contracts so the potential exists to reach that mark but that would assume the majority of remaining longs will stand for delivery. I must admit the likelihood of such an event is rather low based on  previous history. Perhaps some fresh buyers will enter that contract and take some gold much as what happened to the thinly traded March contract last week. What also needs to happen is for the Comex warehouse numbers to decline. We need to see both heavy stopping of deliveries and strong drawdowns of the warehouse stocks. Barring that, any talk of Comex default is rather premature.

The commodity currencies, the Loonie, Aussie and Kiwi, were all lower today as crude oil continued its sell off. That brought algorithm-generated selling into the entire commodity complex with even the grains unable to add to yesterday’s strong gains as soybeans struggled to add to that big move higher off yesterday’s plantings intentions report. Unleaded gasoline was hit for an $.08/gallon loss at its worst levels today. That chart is now showing a bearish turn lower in both the 10 day and 20 day moving averages. Price remains above the 40 and 50 day however so the bulls still have the intermediate term advantage as long as those moving averages hold any further moves lower in price.

It is evident from today’s price action that a great deal of yesterday’s move up across the commodity complex was related to end-of-month and end-of-quarter positioning by both hedge and index funds as many markets lacked any noteworthy upside follow through. Losses in the first quarter in the commodity indices occurred once again but those losses averaged 9% compared to much larger losses in the third and fourth quarters of last year. It still appears to me that the commodity markets as a whole have put in a bottom.

Copper however continues to show remarkable resilience and bears close monitoring. Lumber, another forward looking market also experienced a great deal of buying. I find that interesting given what has been occurring among the homebuilders.

Bonds were rather subdued.

“YAWN!” – sums up most of the market action today.

Click chart to enlarge today’s hourly action in Gold in PDF format with commentary from Trader Dan Norcini

April0109Gold1230pmCDT.jpg

Posted at 10:00 AM (CST) by & filed under Guild Investment.

Dear Friends,

This article is a sign of victory for right thinking finance. It is a sign that all derivatives will eventually move to exchanges and their prices will be ruled by market forces. This is a huge victory, and one that Jim Sinclair, Guild Investment Management, and other right thinking minds have long sought.

Hopefully, the days of irresponsible derivative creation are behind us, and the fact that this is being floated just before the Group of 20 meeting is significant.

N.Y. Fed to Push Banks to Open Credit-Swaps Clearing to Clients
By Shannon D. Harrington and Matthew Leising

March 31 (Bloomberg) — Federal Reserve Bank of New York officials will tomorrow urge Wall Street banks to offer hedge funds and other clients access to clearinghouses that protect against losses in the $28 trillion credit-default swaps market.

JPMorgan Chase & Co., Deutsche Bank AG and Goldman Sachs Group Inc. are among nine banks that this month began using Intercontinental Exchange Inc.’s New York-based clearinghouse for the credit derivatives. Representatives from the banks meet tomorrow in New York with Fed officials to discuss the timing of expanded market access, according to a person familiar with the agenda.

Since March 13, $50 billion of the contracts have been cleared by Intercontinental in a system that is open only to nine banks. Credit-default swap clearinghouses created by Intercontinental competitors CME Group Inc. and NYSE Euronext haven’t attracted any customers from the banks.

More…

 

Additionally, below is an article in the financial times about how the people who created the problems are occupying their time these days…

Warm Regards,

Monty Guild and Tony Danaher
www.GuildInvestment.com

Bankers find new focus amid rubble of the crisis
FINANCIAL TIMES
March 30 2009

It would be easy to think that life for all those “financial engineers”, the bankers focused on default probabilities and credit ratings arbitrage who were crucial to the boom in mortgage bonds and other structured niceties, was over – professionally at least.

However, for some the job is busier than ever – and their work is a big part of the bump in first-quarter revenues in the debt businesses of their investment bank employers.

Many of them are now engaged in financial restructuring, which involves dealing with toxic assets and freeing up or protecting capital. But they will not get fanfares in earnings reports because the work they are doing – and have in some cases been doing for more than a year – is very hush-hush.

Their work often began in shoring up their own employers’ balance sheets, but has increasingly become a client business.

This is one reason for keeping the work quiet. There is huge sensitivity over anything leaking into what remains a highly tetchy market for bank securities of all kinds, still beset by the fear of panics.

Even the simple fact that an investment bank has been engaged to work with another bank or company could be enough to spook some investors, it is feared. Specialists at only two banks were prepared to be identified at all in this piece.

More…

Posted at 9:44 PM (CST) by & filed under In The News.

Dear CIGAs,

For anyone that thinks the mortgage reset problem is over, a review of the following from Credit Suisse is mandatory. First the average guys get killed then the leveraged big boys go down hard.

 

Jim Sinclair’s Commentary

The growth business of 2009 – 2012 is prison-run Organized Crime, symbol PROC, now estimated at 150,000 trained and dedicated staff.

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Jim Sinclair’s Commentary

Reliance on the US dollar is in an intact downtrend that is unlikely to change. The dollar is dead as a reserve currency. Dollars held will be kept and diversified away from in creative ways such as China buying THE MINING WORLD.
China and Argentina in currency swap
By Jude Webber in Santiago
Published: March 31 2009 01:25 | Last updated: March 31 2009 01:25

China, which is pushing to end the dominance of the dollar as a worldwide reserve, has agreed a Rmb70bn ($10.24bn, £7.18bn, €7.76bn) currency swap with Argentina that will allow it to receive renminbi instead of dollars for its exports to the Latin American country.

Xinhua, the official Chinese news agency, said the deal was signed on Sunday by Zhou Xiaochuan, governor of the People’s Bank of China, and Martín Redrado, Argentine central bank president, in Medellín, Colombia, where they are attending a meeting of the Inter-American Development Bank.

An Argentine official confirmed a deal had been discussed and said the fine print was being worked out and negotiations were “very advanced”.

Beijing has signed Rmb650bn ($95bn, €72bn, £67bn) of deals since December with Malaysia, South Korea, Hong Kong, Belarus, Indonesia and, now, Argentina in an attempt to unblock trade financing that has been severely curtailed by the crisis.

More…

Jim Sinclair’s Commentary

The Pakistani Taliban are threatening a massive attack on the White House. (Click image to play video).

image

Pakistani Taliban Leader Threatens Attack on Washington
By Pamela Constable
Washington Post Foreign Service
Tuesday, March 31, 2009; 4:13 PM

KABUL, March 31 — The reclusive commander of the Pakistani Taliban claimed Tuesday that his fighters had carried out Monday’s bold assault on a police academy in eastern Pakistan and boasted that he was planning a terrorist attack in Washington that would astonish the world.

Beitullah Mehsud, an Islamist leader from the South Waziristan tribal area in northwest Pakistan, called several international news agencies in Pakistan to assert responsibility for the armed occupation of the police training compound that ended with 11 people dead.

He also told reporters that he was planning to attack targets in the U.S. capital in retaliation for more than 30 strikes by unmanned U.S. drones that have targeted suspected al-Qaeda and Taliban sanctuaries in northwest Pakistan near the border with Afghanistan.

More…

 

Jim Sinclair’s Commentary

There are no greater COWARDS than financial guys. Today they are useless beings with no redeeming human values.

G20: Dozens of banks to shut branches in London in fear of summit protesters
Banks are planning to board up branches in central London and run their operations with a skeleton staff because of the fear of violence around the G20 summit.
By Christopher Hope, Whitehall Editor
Last Updated: 10:16AM BST 31 Mar 2009

The news comes after protesters circulated a map which identifies more than 125 targets across the City, including dozens of international corporations, banks, and oil companies.

More than 50 financial institutions are pinpointed, including some of those – like Royal Bank of Scotland, Lloyds TSB – blamed for precipitating the current economic crisis. The map urged potential demonstrators to vent their anger at the “carpeted, warmed and well-lighted offices” of corporate capitalism, quoting the writer CS Lewis’s attack on the “managerial age”.

None of the main banks would comment. However senior banking figures told telegraph.co.uk that they were taking the security threat seriously, and admitted that they were concerned about the possibility of trouble.

One banking source said: “Everyone is taking precautions in the Square Mile. Many branches will be closed. It will be essential staff only who travel into work in those two days.

“Lets hope that it goes off peacefully. We cannot guarantee that but we hope it will be the case.”

More…

Jim Sinclair’s Commentary

The script of the Formula continues to play out.

Budget experts predict no Social Security cost-of-living increases for 3 years
STEPHEN OHLEMACHER | Associated Press Writer
5:16 PM EDT, March 31, 2009

WASHINGTON (AP) — The recession is projected to wipe out annual cost-of-living increases for 50 million Social Security beneficiaries for the next three years, something that hasn’t happened since automatic adjustments were adopted in 1975.

The Congressional Budget Office says in its latest budget estimates that inflation will dip so low that Social Security recipients will not qualify for annual increases in 2010, or for two years after that. In 2013 through 2019 — when projections are less reliable — CBO estimates annual increases of 2 percent each year, which would be among the lowest.

David Certner, director of legislative policy for the AARP, said many recipients rely on those increases to help pay for rising health care costs, which tend to outpace inflation. Many older Americans have also seen the values of their homes and savings decrease because of the nation’s financial crisis.

More…

Posted at 3:21 PM (CST) by & filed under General Editorial.

Dear CIGAs,

1. The change is not abrupt. It has been cooking for years.

2. Yesterday the change was set in cement as completed.

3. GM is only the first.

4. From now on rather than public corporate management looking to stockholders, their vision will be towards Washington from whom they will take their clues to act.

5. Finance, having taken over government, now has taken over public industry.

6. It does not matter how you define this in terms of ism.

7. The American Dream is dead.

8. The US dollar is dead.

9. Gold is your only lifeline because investments are over (see Monty’s comments on volatility). I means lifeline in its most literal interpretation.

Note:

Having lived in India for a significant time, I am used to seeing pictures of living people with air brushed or light induced figures of halos over or beside their heads in their public pictures. Please see the front page IBD photo of the US President today.

Posted at 3:11 PM (CST) by & filed under Jim's Mailbox.

Jim,

This is very disturbing. You may have seen this already but it is a tutorial that explains how the toxic assets are taken off of the bank’s books and given to the American citizen via the FDIC guarantee. The real kicker is the banks can do all this by purchasing the toxic assets from themselves.

CIGA, Eddie Hoff

Jim,

This plan, if undertaken globally, will undermine or completely derail any US dollar swaps (with IMF – surely a topic that is going to be discussed at G-20) with Nations that are undergoing dollar squeezes. These Chinese are smart and it looks like their "sales force" is just getting ramped up.

CIGA Danny S.

China and Argentina in currency swap
By Jude Webber in Santiago
Published: March 31 2009 01:25 | Last updated: March 31 2009 01:25

China, which is pushing to end the dominance of the dollar as a worldwide reserve, has agreed a Rmb70bn ($10.24bn, £7.18bn, €7.76bn) currency swap with Argentina that will allow it to receive renminbi instead of dollars for its exports to the Latin American country.

Xinhua, the official Chinese news agency, said the deal was signed on Sunday by Zhou Xiaochuan, governor of the People’s Bank of China, and Martín Redrado, Argentine central bank president, in Medellín, Colombia, where they are attending a meeting of the Inter-American Development Bank.

An Argentine official confirmed a deal had been discussed and said the fine print was being worked out and negotiations were “very advanced”.
More…

Dear Danny,

Quietly and without fanfare the mechanisms gather at the sequential death of the US dollar. Gold is the only lifeline as what is below is a long term form of expansion of one’s monetary policy.

Respectfully yours,
Jim

Hello Mr. Sinclair,

As has been mentioned before, commercial real estate is one of the next shoes to drop. Here is an example of Boston’s tallest building that sold for 50% less than the original purchase price.

Kindest regards,
CIGA Jeff

Hancock Tower has new owner
By Thomas Grillo
Tuesday, March 31, 2009

NEW YORK CITY – The Hub’s John Hancock Tower, New England’s tallest skyscraper, sold at auction this morning for $660.6 million, about half what it sold for nearly two years ago.

Normandy Real Estate Partners, which owns two buildings on Summer Street in Boston, and Five Mile Capital Partners combined to make the winning bid for the Back Bay trophy property.

The companies agreed to pay $20.1 million for the mezzanine debt on the 60-story building and assume the mortgage of $640.5 million, according to a statement issued at the auction.

More…