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,
Jim

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?

Sincerely,
Jim

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 …

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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
www.FortWealth.com
866-443-0868
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

Queenie

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."

More…

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.

Regards,
Jim

Dear Mr. Sinclair,

I decided to visit Bloomberg.com 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.

CIGA Marc

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.

Regards,
Jim

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.

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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,

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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.

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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:

COUNTRY POPULATION GDP FOREX RESERVES

(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

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Posted at 1:48 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

This is madness unless you want a planetary Weimar with the only difference being whose currency hits the deck first. Fellows, it is not bad business causing derivatives problems. It is bad derivatives extending a normal business contraction into an unprecedented disaster. Aim at the cause, not at the symptoms.

G-20 Says Its Ready to Urgently Boost Growth, Stimulus Needed
By Ben Sills and Shamim Adam

Nov. 10 (Bloomberg) — The Group of 20 nations is prepared to act “urgently” to bolster growth and called on governments to cut interest rates and raise spending as the world’s leading industrialized economies battle the threat of a recession.

“We stand ready to urgently take forward work and actions agreed by our leaders to restore and maintain financial stability and support global growth,” the group said in a statement released yesterday following a meeting in Sao Paulo. “Countries must use all their policy flexibility, consistent with their circumstances, to support sustainable growth.”

Those measures include “monetary and fiscal policy,” it said.

China, the world’s largest developing economy, announced an economic stimulus package worth almost a fifth of its output to sustain domestic demand as the credit crunch drags down growth from New York to Tokyo. Officials in the U.S. and Europe already have slashed borrowing costs and boosted spending in a bid to contain the effects of the slump.

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Jim Sinclair’s Commentary

I never thought I would ever see this.

If Bloomberg is successful, you will not be able to believe how the US Federal Reserve has sold the US citizens straight down the pooper.

Bloomberg Sues Fed to Force Disclosure of Collateral (Update1)
By Mark Pittman

Nov. 7 (Bloomberg) — Bloomberg News asked a U.S. court today to force the Federal Reserve to disclose securities the central bank is accepting on behalf of American taxpayers as collateral for $1.5 trillion of loans to banks.

The lawsuit is based on the U.S. Freedom of Information Act, which requires federal agencies to make government documents available to the press and the public, according to the complaint. The suit, filed in New York, doesn’t seek money damages.

“The American taxpayer is entitled to know the risks, costs and methodology associated with the unprecedented government bailout of the U.S. financial industry,” said Matthew Winkler, the editor-in-chief of Bloomberg News, a unit of New York-based Bloomberg LP, in an e-mail.

The Fed has lent $1.5 trillion to banks, including Citigroup Inc. and Goldman Sachs Group Inc., through programs such as its discount window, the Primary Dealer Credit Facility and the Term Securities Lending Facility. Collateral is an asset pledged to a lender in the event that a loan payment isn’t made.

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Jim Sinclair’s Commentary

25 billion will do nothing to keep automakers making autos that they cannot sell. 25 today, 50 tomorrow and 100 next week.

Emanuel Says Auto Industry Essential to U.S. Economy (Update1)
By Todd Shields

Nov. 9 (Bloomberg) — Rahm Emanuel, President-elect Barack Obama’s chief of staff, called the auto industry an “essential” part of U.S. manufacturing, while stopping short of endorsing a proposal to use some of the $700 billion financial-rescue fund to aid automakers.

“The auto industry is an essential part of our economy,” Emanuel said on ABC’s “This Week.” Lawmakers should speed up the availability of $25 billion in government loans for the development of fuel-efficient cars, he said.

In addition, there are “other authorities” the administration can use immediately and Obama “has asked his economic team to look at different options of what it takes to help bridge the auto industry so they are a part of not only a revived economy, but part of an energy policy going forward.”

Emanuel didn’t directly respond to whether Obama endorses a proposal by House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid to use some of the $700 billion approved to stabilize the financial services industry to aid automakers.

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