IMF Fails, Gold Shines as Currency Wars to Continue

"The IMF was unable to stem the tide of competitive currency devaluations over the weekend. As a result, governments and central banks around the world still have the green light to continue with their money printing orgy. Some of the citizens of these various regions and countries have recently been acting as their own central banks by purchasing gold as insurance against the currency wars. As fears escalate, the question now becomes, when will the people of this world once again have a stable system of currency?


Here is a new piece exclusively for the King World News blog from Ben Davies, CEO of Hinde Capital which sums up the situation nicely:


IMF At The Epicenter Of Currency Earthquake

By Ben Davies, CEO of Hinde Capital

October 10 (King World News) - Henry Hazlitt was the modern literary agent of libertarianism. At the advent of Bretton Woods he stood alone in his New York Times editorials condemning the monstrosity, as he termed it, that was the IMF. He considered this entity no different to the Federal Reserve Bank. Another organization espousing the values of economic growth and price stability. In reality, they were both merely agents for the propagation of money to aid and abet the continuation of the flawed policies and practices of a country. In the case of the IMF they called on loans from member countries to 'bail out' bankrupt nations globally. The IMF prolonged the inevitable misery and didn't address the issues that got the country into difficulties in the first place.


Emergent nations once patronized by IMF bailouts and inappropriate 'conditional love' have put two fingers up. I can almost hear the BRIC nations silent mutterings, "Why should we 'flex' our currencies to assist the developing nations who so highmindedly leered over us in troubled times passed and revelled in our misery."


Bretton Woods was possible due to the economic strength of US. The Plaza Accord was permitted because it was in the best interest of the US. The Louvre Accord which tried to arrest the efforts of the Plaza Accord of two years earlier, ironically, was permitted because it was in the best interest of the US.


The US and developed nations no longer wield power anymore. " IMF who? " the BRIC’s cry. Right now the emergent nations are more content to say "our currency, your problem". Unfortunately the West, particularly the US have returned the favour, "our bonds, your problem" and so the stalement will prevail.


Unfortunately as each day passes, the friction of the global monetary fault lines grow stronger. These fault lines will release their energy in the largest world monetary earthquake known to man, as we witness the inevitable demise of the fiat currency system - as all such systems have failed before, leaving not one survivor.


As currency wars escalate, it is wise for individuals to have a presence outside of the system by owning gold."


- Eric King Of King World News

Say What!

If jobs grew at 50,000 per month it would only take 13 years to regain the jobs lost.

Where is the recovery on Main Street?

The Day Securitized Debt On Mortgages Died

The following is BREAKING NEWS:

Racketeering suits (RICO), now as civil class action suits in two states, have hit the nail on the head. The civil suit says the banks do not have proper title to the homes on which they are foreclosing. This by direct inference questions if securitized debt on mortgages have real collateral behind them.

Simply stated a long time ago by Marie McDonnell and myself, THEY DO NOT.

That means legacy assets are cooked, dead, and worthless, yet are now marked up in value to cost and above. This is all thanks to FASB’s capitulation that now represents a large amount of capital for the Western world’s financial entities.

The you know what hit the fan today for those that understand. October 4th 2010, the essence of securitized debt on mortgages died!

That alone gives you gold at $1650.


- Jim Sinclair

FORMER MAJOR GOLD SELLERS ARE ABSENT FROM THE MARKET

Gold sales by central banks in Europe fell to a very low level in the twelve month period ending 9/30/2010. The rate of sales was about 95% below the average of the last decade.

Interestingly, over the last 12 months several governments announced that they were open market buyers of gold. These include Russia, China, Thailand, and India.

- Monty Guild

Gold $1300 Plus!

GOLD SMASHES THROUGH $1300! $1650 BY THE END OF JAN 2011!

25 Nations Devalue their Currencies, RACE TO THE BOTTOM!

Within the last week, 25 Nations Devalued their currencies, through massive quantitative easing. This is talked about by the media only slightly. You need to do your own research, remember QE is a form of shadow taxation, so you should be interested as it affects us all.

Here is a quote from Ben Davies today, CEO of Hinde capital out of London:

“Within a single week 25 nations have deliberately slashed the values of their currencies. Nothing quite comparable with this has ever happened before in the history of the world. This world monetary earthquake will carry many lessons.”

Dear Friends,

Today is a case of being careful what you wish for – the Fed has pulled out all the stops in an attempt to avoid a deflationary trap tied to the inception of the credit crisis that broke loose in the summer of 2008. Since then they have flooded the system with liquidity through a process dubiously referred to as Quantitative Easing. They have also loaded their balance sheet with worthless loan paper and shoved interest rates practically to zero.

Not to be outdone, our illustrious administration has saddled us with enough debt at the federal level to last three generations all in the name of “stimulus”.

The result – they have gotten their wish – sadly for all of us, who actually have to live with their damn stupidity, they have let slip the dogs of inflation who have bared their fangs and are now ravenously devouring the hopes and dreams of the middle class in this nation.

The funny money has made its way into the commodity sector driving food prices to unseemly high levels once again just as what happened in 2008. Corn is now within spitting distance of $5.00, wheat is more than $7.00, soybeans are over $10, sugar is over $0.24/pound, cotton is closing in on $1.00, coffee is up near $2.00 pound wholesale ( a 13 year high), cattle are just shy of $1.00/pound, bellies are trading over $1.50/pound for fresh product. In short, the consumer is on the verge of watching his or her’s disposal income decimated by high food prices at the very time that a record number of Americans are on food stamps and are either unemployed or underemployed.

I shudder to say it but based on what I can see of the price action across the commodity sector today, an evil has now been loosed upon the land that portends the eventual ruin of the middle class.

The only bit of saving grace is that energy prices have not YET begun moving up alongside the rest of the commodity complex. I think it is only a matter of time however before the crude complex gets involved. When it does, home heating bills, home cooling bills, industrial energy costs and gasoline prices will join the list of soaring costs nationwide.

The one-two knockout punch of higher soaring food cost and higher energy costs will finish off the consumer whose wages have been stagnant for longer than I can now remember.

Make no mistake about what you seeing, especially with the price action of gold and silver. Both metals are signifying a loss of confidence in the Dollar and particularly in its management team. It is ironic is it not, that any supposedly friendly economic news now results in waves of Dollar selling whereupon in times not that far past, any negative news yielded a huge inflow into the Dollar as a safe haven. Good news – Dollar goes down; Bad news – Dollar goes up.

Now to the technical picture in gold –

Fund buying came in such torrents that it overcame the bullion bank wall of offers near and just above $1,260. As those crumbled, opportunistic shorts that like to piggyback the banks were forced to cover. Their buying engendered more fresh buying allowing gold to not only take out $12,65 but run past $1,275 setting a new lifetime high in the process.

Open interest is at a relatively low level even with this breakout meaning that this rally has legs.

We are now in uncharted territory for gold so resistance levels are being projected by other means of former peaks. It appears that we should see some efforts to stall the rise near $1,282 – $1,285. Failure there and gold will be at $1,300 before one can blink.

Silver took out critical resistance at $20.50 total but just missed closing above that level. Once it does so, it is off to $21. A push through $21.50 and it should move up towards $23.

The HUI is finally moving up showing very good strength here near midday as it has bested stubborn resistance near the very tough 500 level, a level which I might add has kept it in check for more than a year now. If it can CLOSE above 500, it is poised to make a run at the all time high just shy of 520. If it can push through that level, the longsuffering gold and silver share owners are going to finally see their patience rewarded with an acceleration the long term uptrend in the cards.

The Dollar crashed through what should have been a floor of support near the 82 level as if the boards were made of rotten, termite-infested timbers. It is now headed to 80, where if it fails, the ill winds of inflation blowing through the economy are only going to intensify.

Strapping In For The Big Move

Dear CIGAs,

Now that expectations for Gold at very significant prices are being offered by various rational sources, there is one thing you can be sure of. That one thing is $1650.

I am getting many emails asking how it is possible for the gold price to reach $1650 by early January.

I suspect these are far out in time, out of the money call option buyers that have done exactly what I have warned against. That is the using of options with an investment outlook.

Options are speculations that you never hold past the half way to expiry point, but instead switch to further out months if you believe in what you are doing.

Those that pre-offer gold cannot trade it at $1650 in January because of the short time versus the big moves. They clearly have never experienced the gold run in late 1979 and early 1980.

I will stand with what I have said for nearly 10 years. Gold will trade at $1650 on or before January 14th, 2011. That never made me want to buy expensive in time call options.

It has given me the courage to invest in gold without margin both in shares and bullion.

There is no doubt in my mind that $1650 will occur in early 2011. I have told you that Martin Armstrong, a master timer, feels that gold will trade higher and face a reaction in middle to late June of 2011.

The gold banks are throwing blocks to the price as we approach $1262. This is a major waste of time and money as gold is going to and through that price. The only argument is whether gold will hit $1650 in January 2011 or $3000-$5000 in June 2011.

Do you have any idea how much money has been made by those that bought gold modestly and in cash only on every reaction and sold into the rhino horns? It sounded stupid when I suggested this tactic for the wannabe traders.

I ran 22,000 long gold contracts in the New York and London markets in 1978 to 1980. Back then that was a big number. Today if I have a conviction, I simply play with everything I have and screw credit. The only credit I would use as a pro trader is options.

Those of you who follow me closely know that I am NOT kidding. This is the time when PRICE and TIME meet each other.

This is the time now as it was in 1979 that I went throttle to floor.

This is the time now as it was in 1979 that I am committing 100% of all the cash I can accumulate to what I believe in.

This is the time when all I have planned for is falling into place for the final and enormous pay day. However, I will not and you should not violate discipline, as I have always tried to teach you.

Option are never held past 50% of time left when you purchased them.

If I am wrong about gold at $1650 on or before 14/01/11 it only means gold will trade much higher than $1650 five months later.

As far as being long and wrong, that is something I definitely am not.

Respectfully,
Jim

Fiat Money to Meet its End

In Richard Russell’s latest commentary, the Godfather of newsletter writers discusses bear markets, gold, silver and fiat money. Russell is always focused on the big picture. This time he highlights the biggest fraud of the last half a century and how it will end. Here are a few snippets from his latest commentary...

August 30, 2010

Richard Russell:


Bear markets exist for the purpose of exposing and eliminating the greed, the corruption and the fraud that thrived in the preceding primary bull market.


To my mind, the biggest fraud of the last fifty years has been the rise and acceptance of fiat "money." For that reason, I expect fiat money to meet its end before this bear market breathes its last. Judging by the size of the top, this could be the biggest bear market since the '30s. I believe this bear market means to take us back to basics and truth. That alone implies the end of central bank-created money and the rise of gold and probably silver. It may also end that immoral inflation machine, the Federal Reserve. Wall Street and its bankers now run the nation. That too will end.


The history of money in the US is a legend of lies, manipulation, immorality and greed. I think this bear market will end those lies, one way or another.


Russell on gold and silver:


This only suggests that gold could be rather wild between the months of December through April.


Silver joins gold. This morning silver broke above out of a huge triangle. This is bullish for the whole precious metal spectrum.


Investors sometimes get caught up in the day to day and week to week movements in gold and silver. Don’t waste your time or energy on that, just accumulate. Standing in front of us is the greatest transfer of wealth in history. When the dust settles, those holding the gold will make the rules.


Eric King
King World News

Slippery Slope

When a government plan fails, further government and agency programs will be initiated based on the same game plan.

Here we go down that slippery slope of bailing out homeowners without jobs and yesterday’s states without necessary income.

This period will consume as much and more than the first bailout of Wall Street – one trillion or more. Gold will trade $1650 and beyond.

- Jim Sinclair

Money Never Dies

Since the birth of man’s awareness of the future, money never dies. It only changes in form.

I have studied hyperinflation from ancient to modern times. It embodies the smell of fear and the felling of helpless for those unprepared for a currency transition. It is the manifestation of private and public panic – the panic to protect yourself, but neither knowing what to do nor able to do so in a timely manner. Hyperinflation is a crash in confidence of not only those that manage the currency but also the public leadership that surrounds it. Hyperinflation as an event tends to create both a confidence and power vacuum in which new leadership, either benign or sinister, tends to exploit.

Sincerely,
Eric

Gold is Going Higher...

"Daily Bell: Where is gold going? Silver? Harry Schultz: Much higher. Sky is the limit for gold. Governments are losing control of gold. They cheat, steal, lie, maneuver … but gold will beat them and is already doing so, in stages."

- Harry Schultz

BP is Finished?

Rickards correctly predicted that BP would be charged with criminal negligence, and he also predicted this would result in damages that would finish the company altogether. In less than 30 days, Politico has confirmed that criminal charges are forthcoming against BP and that others will be prosecuted as well.


This was from the Jim Rickards piece on June 18th titled Why BP Will Not Survive:

“Don't think the law can stop this. The law will accelerate it. BP's negligence will turn out to be criminal, not civil and the criminal penalties are exponentially greater than the civil fines and normal tort claims. Obama will use the threat of criminal prosecution to get more and then use an actual criminal prosecution to get the residual.”


To read the entire Jim Rickards piece “Why BP Will Not Survive” CLICK HERE.


This was from the Politico article signaling the BP criminal investigation:

Attorney General Eric Holder signaled here that the Justice Department may be conducting a sweeping criminal investigation into the Gulf Coast oil spill, saying that its suspected targets may cover more than just BP.

"There are a variety of entities and a variety of people who are the subjects of that investigation," Holder told CBS' Bob Schieffer at the Aspen Ideas Festival.


To read the entire Politco article confirming the criminal investigation of BP and apparently others CLICK HERE.


Eric King

KingWorldNews.com

Champions! Gold and Silver

"Gold and silver have no counterparty risk, they are no one's liability or promise, they shall always have value. Governments and “Too Big to Fails” can all default; fiat currencies can go up in flames, gold and silver will remain poised competing neck and neck to champion the podium as the number one worldwide monetary unit of choice."

- Mike Maloney

Eternal Wealth

"My advice now is to put as much of your money as you’re comfortable with in bullion coins. The reason rich men accumulate gold is as follows. Gold is eternal wealth. Own three thousand ounces of gold, and you’ll always be wealthy. Remember the simple phrase that’s been around through years of history – “There’s no fever like gold fever.” Fiat money is doomed. Act on it."

- Richard Russell

Leave your Emotions at the Door

"Dear Friends,

Risk according to market pundits, blogs and for payment advisers is on one minute, and off the next, causing the gold market to roar and wane.

Hedge funds are the real cause of the moves by painting the charts intentionally or by accident. Amateur technicians run and jump constantly making contributions to the gold banks from their piggy banks.

Simply stated:

1. Leave your emotions at the door or get out of gold.
2. Gold is going to $1650. About that price objective I do not have the slightest doubt.
3. Gold is going to $1650 on or before January 14th, 2011. According to Armstrong the gold price will take until June of 2011 and go much higher.

This is just another time like many in the past, and some in future, where you go to the hole you have dug, jump in and pull a rock over the top. Peek out daily between July 8th and July 15th.

Yes, read JSMineset every day.

Respectfully,
Jim Sinclair"

Ski Jump Recovery! Look out Below...

STOP SPENDING!

Gotta Love Rick, He speaks the Truth.




And as a side note, is the only reason to watch CNBC anymore.

Feel for yah...

"Personally, I'm not too optimistic. I still have a bad feeling about the economy. I feel there's a lot of BS in the air. If the Dow Industrials and Transports drop below their May 7th lows, the next drop could be a long one. I pray for anyone still in the stock market. I'm concerned for my fellow baby-boomers who are hoping the market goes up in price so that they can retire."


- Robert Kiyosaki

S&P 500 Support Broken, Get Ready for a Slippery Slope!

1,040 taken out. 865 next stop. Get Ready for a Volatile Summer, probably won't bottom until October of this year. Ouch.

Dear Comrades In Golden Arms,

Dear Comrades In Golden Arms,

Equity markets are sharply lower, the Euro is sharply lower, commodities are under significant pressure. Gold opens lower and recovers $16 from the low to be up on the day.

1. The type on inflation being discounted by Gold requires business activity to be putrid.
2. This type of inflation is hyperinflation, which is a currency event, not an economic demand phenomenon.
3. Rather than a singular currency loss of confidence igniting hyperinflation, it will be all Western currencies moving against each other with intolerable to business volatility.
4. All Western governments will practice QE to infinity, as we return to credit market problems. The statement of the G20 and Prince Charles cutting down on caterers is all smoke and MOPE.
5. Gold is NOT a commodity.
6. Gold is a currency
7. Gold is the currency of choice.
8. Gold is going to becoming the reserve asset of choice by central banks
9. Ownership of gold means you are your own central bank.

Conclusion:

The arguments between inflation and deflation revealed itself today to be purely semantical.

Gold is headed in this move to $1650 with its normal drama.


- Jim Sinclair

G20 Script

The G20 script caste against present circumstances.

1. EC members terrified by the power of OTC derivatives to destroy national bond markets are running scared. The strategy is twofold. Intervention at $1.19 to $1.20 in the euro and massive PR concerning strong currency initiatives weakened the dollar from its highs and took the euro so far into its $1.24-$1.25 key resistance.

2. Bernanke as a student of the Great Depression organizes a strong argument for continued coordinated monetary expansion with the US Treasury.

3. Monetarism fails miserably when applied in an open system. That is its major weakness. Bernanke’s thesis demands the entire Western World be on the same page of Monetarism for without it new lows in the history of this period will be established. A return to locked credit markets is a reasonable assumption

4. Media seems to have slowed down on its revelations of EU weak states.

5. There seems to be a slight pickup in media discussion of the dire condition of US states heading towards bankruptcy.

Keep in mind that in this new global economy a problem anywhere is a problem everywhere. As any currency in the Western World comes under attack, Gold has become the asset of choice.

Be ready for more violence in the USD/EU equation. Violence regardless of direction will be gold positive. This move is to $1650 and beyond.

- Jim Sinclair

1930's and Now

The 1930's and now are looking more and more similar, The Gulf Oil spill, The Dust Bowl? Different yet the same, Think about it.

The International Forecaster - 6/19/2010

"Remember what JP Morgan himself said: "Gold is money, period." And soon it will be the only money that has any value, period. Gold, silver and their related shares are the only place to be. Stay clear of paper gold and silver and buy physical only and take possession. These paper gold and silver Ponzi schemes, like GLD, SLV, OTC derivatives and mint certificates are going to be exposed soon. Very shortly, JP Morgan will be sued in class actions by big players that have been criminally screwed in the silver markets, and this could be the catalyst that finally blows the whole precious metals fraud wide open. So load up!"

- Bob Chapman

Gold at new record high after Saudi reserves double

Gold prices hit on Monday a fresh record high of almost $1,265 a troy ounce following the revelation that Saudi Arabia, the world’s largest oil exporter, is sitting on more than twice as much gold as previously thought, according to new estimates.

The disclosure points to the revival of bullion as part of emerging economies’ official reserves and comes as investors pour money into the yellow metal.

The weakness of the dollar following China’s decision to make the yuan more flexible, gave bullion further momentum, analysts said. A stronger yuan makes the cost of gold for Chinese buyer cheaper, potentially increasing demand. China is the world’s second largest gold consumer, after India. It is also the largest producer.

In early trade in London, spot gold surged to $1,264.9 an ounce, up 0.7 per cent from Friday’s last quote in New York. It later pared gains to trade at $1,258. Adjusted for inflation, however, bullion is still below its all-time high of more than $2,300 set in 1980.

Traders and bankers said hedge funds remain extremely bullish on gold because they believe that, sooner or later, the central bank’s recent massive monetary expansion would translate into inflation. Some hedge funds have internal forecasts above $1,300-$1,500 for the end of the year, bankers said.

Hip Hip Hooray?!?

"Do not confuse a rising stock market environment as an indication of economic stability or improvement. The Weimar Republic model illustrates how financial and social pain can be associated with a rising stock environment."

The Move to $1650 and what it Means for Producers

It is my feeling that gold is headed on this move to $1650 with its normal drama.

Let’s think about what this means to gold producers.

With gold valued at $1650 per ounce:

- 500,000 ounces = $825,000,000 less the cost of mining.
- 1,000,000 ounces = 1,650,000,000 less the cost of mining.
- 2,000,000 ounces = 3,300,000,000 less the cost of mining.

Costs:

- Underground average costs are approximately $500-$600 (assuming no derivatives or derivatives covered as international and Canadian GAAP requires derivative losses be expensed to the specific property).
- Open cut average costs are approximately $300 (again, assuming no derivatives or derivatives covered).
- On surface average costs are approximately $22-$75 (again, assuming no derivatives or derivatives covered).


- Jim Sinclair, of JSMineSet.com

QE to Infinity

Time to buy? Now even China is trying to talk gold down

BEIJING -- The gold market is too small, illiquid, and volatile to be suitable for asset allocation, China's State Administration of Foreign Exchange (SAFE), said in its annual report published on Thursday.

SAFE, part of the central bank, the People's Bank of China, last year revealed its gold reserves had grown to 1,054 tonnes from 600 tonnes in 2003, mainly the result of buying up local production. It has not given any update of its holdings since then.

Good old China. Remember actions speak louder than words.

Are Gold Prices Manipulated?

"Chris Powell Secretary/Treasurer Gold Anti-Trust Action Committee or GATA discusses the gold manipulation debate and reveals his price target for free-market gold."

BMO Has A Simple Message To Its Clients: Go To Cash Now

In a surprising development, the most bearish, and easily most comprehensive, report that we have read in a long time on the broader markets, comes from Canada of all places, via BMO's Quant/Tech desk. The report's title is simple enough: Go To Cash - In Plain English. Not much clarification needed. Here is the gist: "We advocate switching out of equity positions and going to cash. The European sovereign debt crisis appears to be nowhere near over. The global credit environment is worsening. Cost of capital is going up and availability is going down. There are large gaps between where the credit market prices risk and where the equity market is priced. Equity is lagging the deterioration in credit conditions. Moves in currency, equity and commodity markets are mirroring the moves in the credit market. Global growth, in a credit-constrained environment, will slow. Profits will be squeezed by the higher cost of capital...We advocate a zero weight toward equity, and that investors convert their equity positions to cash."

Here is a link to the original report with far more technical data.


- Tyler Durden, Zero Hedge

Bill Laggner: Markets Vulnerable

Bill Laggner guest posts for KWN:

"The break in the Euro today coincides with the break in the S&P 500 and the support levels of the most recent months have been 1040 to 1050. Those levels now look vulnerable. As the stimulus wears off and the current administration does not have an encore performance, those levels may just give way finally.

The Euro dropped to multiyear lows as Hungary joined Greece in the global economic sovereign debt crisis. Like the Greeks, Hungary and other Eastern/Central European countries cope with economic contraction while debt servicing on both a private and public level remain insurmountable. Societe Generale (SocGen) rumors started overnight when several sources unveiled derivative impairment charges possibly linked to Hungary economic news which shouldn’t surprise anyone since SocGen has over $28 billion in Eastern/Central European debt exposure. To put things in perspective SocGens Eastern European exposure is roughly 60% of equity!

Other French banks remained quiet today as Trichet continues to monetize approximately $2-3 billion per day in Greek sovereign essentially bailing out his countryman’s finance houses while the Germans ask “where is our bailout”. According to latest ’09 filings some of the largest German banks are levered anywhere between 70-80X so a Greek bailout only partially removes some of the toxic waste from their respective balance sheets. No word on how much potential liability lies in the Eastern bloc but sources tell us the situation is dire indeed.

The ECB has elected to enter the QE road. In two weeks the central bank of the United States will meet and looking across the pond and seeing their european counterparts monetizing to the tune of $1 trillion dollars will Bernanke opt into more quantitative easing to stop asset prices from breaching their most recent lows?"


Bill Laggner

Bearing Fund

Dear Comrades In Golden Arms,

"If you do not see the hand of intervention in the gold market early this morning you are either wearing welders gear or are simply inept in this field.

Like the euro intervention being useless in the grand scheme of things, so is the gold intervention this morning.

Above $1224 the manipulators will lose their influence in the price of gold. We sure witnessed that last US night in the euro.

The real numbers now that you will not hear on F-TV are $1.19 and then $1.10, below which the euro will collapse. This will return us to the dark ages in Forex, but will be good for the business of Forex trading.

With regards to our newest sovereign problem, if you were Hungarian would you prefer to own gold or paper of any kind? That is assuming you had any money in the first place to buy gold."

- Jim Sinclair, of JSMineSet.com

Gold Going to Grind Higher

“I expect it’s going to continue to grind higher. I mean the fact that there’s no legitimate currency left for any big deep pools of money, the currencies all seem to be flawed pieces of paper...I think you’ll see more central banks buy gold”

- Bill Fleckenstein referring to the price of Gold.

World Collapse Explained in 3 Minutes

The sad thing is, this isn't a joke, still like the guy at the end of the video says, it's called laughing while you sink.





- Nathan McDonald, CEO of Cash2Riches

Oh no Jose!

Politically correct? No. True? Yes.





- From JSMineSet.com

Gold Is The Money That Can Be Trusted

Eric King: This was from Jim Sinclair’s eblast today and I thought KWN viewers should take note of it (hat tip). Jim Sinclair: What ever the OTC derivatives do not do to the Investment Banks litigation will. Litigation is both civil and criminal. No civil suit based on derivative can ever go to judgement by jury because it will be a stone loser. Even a bench trial would present significant risk to the defendant. OTC derivatives are the basic problem about which nothing has been done and nothing will be done. That secures the final end which is gold as the only standard of value, measure and storehouse of value functioning as a medium exchange which is the complete description of what money is.


Gold is the money that can be trusted as debt is being added to debt in a pharisaical plan to cure a debt problem.


The fiat system is cooked, and there is simply no good paper currency.


The face of this world is about to change. Sir Richard Russell is correct.


Please protect yourselves because you must. I can point you in the right direction. You must take the action.


http://www.bloomberg.com/apps/news?pid=20601103&sid=apaq8bkKnrqw



Lehman Sues JPMorgan to Recover Billions of Dollars (Update1)

By Linda Sandler and David McLaughlin

May 26 (Bloomberg) -- Lehman Brothers Holdings Inc. sued JPMorgan Chase & Co. to recover tens of billions of dollars in “lost value,” accusing the bank of precipitating its downfall and preventing it from winding down in an orderly fashion.

JPMorgan, which was Lehman’s main short-term lender before its September 2008 bankruptcy, helped cause the failure by demanding more collateral as credit markets tightened during the financial crisis, Lehman said in a complaint filed today in U.S. Bankruptcy Court in New York.

The lawsuit follows a report by Lehman examiner Anton Valukas, who said in March that Lehman might have grounds for suing JPMorgan and other banks.

“On the brink of LBHI’s bankruptcy, JPMorgan leveraged its life and death power as the brokerage firm’s primary clearing bank to force LBHI into a series of one-sided agreements and to siphon billions of dollars in critically needed assets,” Lehman said in the complaint.

Lehman didn’t specify in the complaint an amount for the losses it is claiming as a result of JPMorgan’s actions.

“The lawsuit is ill conceived and the costly litigation will cause a further drain on the limited resources available to the Lehman bankruptcy estate,” Joe Evangelisti, a JPMorgan spokesman said.

“As the examiner’s report makes clear, it was the ill- advised decisions of Lehman itself and its principles to take on perilous leverage and to double-down on subprime mortgages and overpriced commercial real estate and not any conduct by JPMorgan that led to Lehman’s demise and the enormous losses to its various constituents,” he said.

The case is In re Lehman Brothers Holdings Inc., 08-13555, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

Inflation on its Way

"Don’t be concerned, this is not until after 2011, and it is one full pound of each."





- Jim Sinclair, JSMineset.com

Eric Sprott To Buy $235 Million In Gold, Or Over 6 Metric Tonnes, As Part Of PHYS Follow-On Offering

"Eric Sprott's Physical Gold Trust (PHYS) has just announced it is issuing a follow-on offering of 18 million trust units, with an overallottment option of another 2.7 million, for a total, including the greenshoe, of 20.7 million new units. The proceeds, as expected, will be used to purchase physical gold bullion to satisfy unprecedented investor demand for a safe haven away from the central bank printing press madness. At a post-announcement per unit price of $11.40, this means Sprott will buy $235 million worth of gold in the open market. At today's gold price of $1,200 this translates into 195,833 troy ounces of gold to be acquired, or roughly 6 metric tonnes. Somehow, we don't think the LBMA will be too thrilled with this extraction of physical gold out of the controlled synthetic precious metal ponzi system."

Tyler Durden - Zero Hedge

The U.S Dollar is Next

"The present relationship, although short term, is that gold is moving in the same direction, of the US dollar. That means that as the US dollar falls markets interpret that as a relief of the euro crisis which results in longs taking profits and shorts establishing positions in gold. A softer dollar today as a product of short covering in the euro for very modest technical and fundaments tidbits means temporarily lower gold as the euro crisis has caused a rush to gold by euro holders. That relationship will stop, but the euro must cease first.

As I explained to you in detail, the next target of credit default derivatives after battering the euro is to batter the US dollar.

After the euro is done within a few sessions the relationship between the dollar and gold will return to inverse in a very big way. This I assure you. With more than 50 years in markets you learn a few things about the madness that goes on."

- Jim Sinclair

Hold your Gold!

"The very temporary MOPE illusion right now is that the most stable base of currencies in the pyramid scheme collapse is the US dollar and therefore where you should flee for safety. Unfortunately the sheeple who fail to study history don’t understand that gold is the only currency that has no liability and cannot be printed by the kingmakers. The writing is on the wall and this is it! Do not trade away your insurance for speculation. Hold your gold in hand and not in paper promises."

Looks about right

A picture is worth a thousand words.

Physical market has smashed gold paper, Sinclair tells King World News

"Eric King of King World News today got a most incisive 12-minute interview out of Jim Sinclair, chairman of Tanzanian Royalty Exploration, proprietor of JSMineSet.com, and America's "Mister Gold," in which Sinclair remarked, among other things:

-- Physical demand for gold has overwhelmed paper gold selling five times in the last two weeks and the cash market will run the gold market

-- Gold is now the leading currency.

-- While the bankruptcy of Greece is convulsing the financial markets, the bankruptcy of California is four times worse.

-- All states and nations will be bailed out by central banks with "qualitative easing to infinity."

-- The continuing pessimism about gold's prospects is a guarantee of higher prices.

-- The decline of currencies may produce a "Weimar effect" on equities, pushing them up.

-- Confidence in government currencies can evaporate overnight.

You can find the interview with Sinclair at the King World News Internet site here:"


http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/5/6_Jim_Sinclair.html

Chicago Tribune in 1934

This cartoon was in the Chicago Tribune in 1934. Look carefully at the plan of action in the lower left corner.

Most of the people running the government don’t remember 1934 because they were even born yet. Apparently they didn’t get history in school.

Schiff: U.S. Is Next Greece

"Peter Schiff, president of Euro Pacific Capital, says what's happening in Greece is only a prelude to what will soon be happening in America."

Schiff: U.S. Dollar Will Crash

"Peter Schiff, president of Euro Pacific Capital and author of How an Economy Grows and Why it Crashes, argues that the credit problems that plagued Greece will happen here and the U.S. dollar index will sink."

"Here is a revealing question."

Phase 2 Starts Today! - Gold & Silver Bull Market - Mike Maloney

"Hi there, this clip was filmed right after we left the Bloomberg studio in Singapore. Mike had just filmed an excellent interview that went out to millions of people who would otherwise have never heard about gold and silver, currency creation by private central banks etc. Mike dicusses many things in this clip, including awareness of the situation, the differences between this market and that of the 1970s, the fact that this is a global phenomenon, and more. Would love to hear your thoughts on what he has to say."

Ignore Gold's Sell-Off

"Jeffrey Christian, managing director of the CPM Group, says gold's recent sell-off will be short lived and that prices should resume their upward trend after investors digest the SEC's fraud accusation against Goldman Sachs."

Still Believe?

"I would add to this that Dwayne also believe in a Jobless Recovery."




- Jim Sinclair, From JSMineSet.com

Bernanke Warns: U.S. Debt Could Balloon to More Than 100% of GDP

"What is said here is a requiem for the dollar!"

Gold is the Safe Haven

"All major US cities and certainly all US States, one way or another, will be bailed out of bankruptcy. They are all heading there en masse.

The US dollar is not a safe haven."

Regards,
Jim Sinclair

Take The Gold, Leave The iPad

"Alix Steel reveals golden ways to spend $1,600 instead of buying a new Apple iPad."

CFTC Whistleblower Injured in London Hit-and-Run

"Dear Friend of GATA and Gold:

London metals trader Andrew Maguire, who warned an investigator for the U.S. Commodity Futures Trading Commission in advance about a gold and silver market manipulation to be undertaken by traders for JPMorgan Chase in February and whose whistleblowing was publicized by GATA at Thursday's CFTC hearing on metals futures trading --

http://www.gata.org/node/8466

-- was injured along with his wife the next day when their car was struck by a hit-and-run driver in the London area.

According to GATA's contact with Maguire, board member Adrian Douglas, Maguire and his wife were admitted to a hospital overnight and released today and are expected to recover fully.

Maguire told Douglas by telephone today that his car was struck by a car careening out of a side road. When a pedestrian who witnessed the crash tried to block the other driver's escape, the other driver accelerated at the pedestrian, causing him to jump out of the way to avoid being hit. The other driver's car then struck two other cars in escaping. But the other driver was caught by police after a chase in which police helicopters were summoned.

We'll convey more information about the incident as it becomes available."

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Greece Bailout Bullish for Gold

"Brian Hicks is the co-manager of the U.S. Global Investors Global Resources Fund, says euro instability will continue to spook investors and support higher gold prices."

Gold's Tug of War

"James Turk, founder of GoldMoney, argues that despite some short term downside, gold prices will still hit $8,000 an ounce."

Hyperinflation has Already Occurred

"Few understand that hyperinflation has already occurred in the bailouts and gifts to the financial industry, and the result of this hyperinflation are coming towards us like a freight train."

- Jim Sinclair, JSMineSet.com

What is Inflation?

"Inflation is when you go to the same restaurant each morning, order the same breakfast, and each time have to ask how much it costs."

- Brazilian businessman

When is it a Depression?

" Its a recession if your neighbor loses his job, its a depression if you lose yours."

Greece is Broke, Period.

"What the market is saying is that Greece was within days of running out of money and a small rescue by some central bank, not necessarily the ECB, offered a SMALL bailout to keep Greece funded for a very short period of time to prevent bankruptcy next week. If you issue IOUs or can’t pay your bills you are broke, period."

- Jim Sinclair

The Bank Never Goes Broker

"The Bank never goes broke. If the Bank runs out of money, it may issue as much more as may be needed by merely writing on any ordinary piece of paper."

- Rule from the game of Monopoly

Gold Prices Tiptoe Higher

"Peter Grandich, chief commentator on Agoracom.com, argues that gold prices are definitely trending higher with strong support from the physical market."

China To Purchase Half of IMF’s Gold

"China has confirmed the intention to purchase 191.3 tons of gold from the International Monetary Fund at an open auction, Finmarket news agency said.

World central banks started to increase their gold reserves after prices on gold began to climb in 2001. The IMF sells gold within the scope of a program to diversify sources of income and achieve an increase in lending.

The IMF announced an intention to sell 403.3 tons of gold in accordance with the adequate decision made by the board of directors of the fund in September of 2009. India, Mauritius and Sri Lanka purchased about 212 tons of the amount at the end of 2009. India purchased most – 200 tons.

China’s interest in international trade is connected with the development of the nation’s economy, as well as with the growing consumer demand in the country.

“Chinese officials have confirmed previous announcements from IMF experts and said that the purchasing of 191 tons of gold would not exert negative influence on the world market. China is interested in the development of the domestic consumer market,” the agency reports.

Most of Chinese citizens believe that investing in gold jewelry is a good way to avoid inflation, Rough & Polished agency said. "

China Will Drive Gold

"Frank Holmes, CEO of U.S. Global Investors, says China's emerging middle class will drive gold prices higher."

The End of Gold's Correction

"Peter Grandich, chief commentator on Agoracom.com, says that if gold prices can hold above $1,125 an ounce for two trading days that gold will be in for another leg up."

Credit Suisse Declares the U.S. a Riskier Investment Than Indonesia

"Amid fears that Switzerland might come to an agreement with the United States on banking privacy and tax evasion disclosures, Credit Suisse issued a report identifying those countries it determined to have the highest risks of default on their sovereign debts. Number 16 on the list was the United States, based primarily on its 2009 budget deficits and government debt.

Countries ranked less likely to default include corruptocracy Kazakhstan, less-than-reform-minded Indonesia, the debt-ridden Philippines and violence-ridden Colombia. By comparison, U.S. Treasuries prices are up today despite a new issuance this week."

By Megan Carpentier 2/12/10 1:47 PM

Silver Can Hit $1,500

"Mike Maloney, author of Rich Dad's Guide to Investing in Gold and Silver, predicted $15,000 gold but think silver offers more upside over the long term."

Why $15,000 Gold is Possible

"Mike Maloney, Author of Guide to Investing in Gold and Silver, reveals why he thinks gold price could skyrocket to $15,000 in 5 years."

The Money Printing Continues, 1.9 Trillion More

"Bernanke will continue to print money until there are no trees left in America."
–Jim Rogers

"Those who stand for nothing fall for anything."
– Alexander Hamilton

Marc Faber on The Alex Jones Show: The Real Value of GOLD vs Paper in Troubled Times

1/2:




2/2:

Stay the Course!

"Stay the course but tighten your seat belt in gold.

Volatility is going ballistic but one thing is for sure and that is a $1650 minimum price objective with much more probable."

- Jim Sinclair, from JSMindset.com

This is Not the Top

If you had lived through a top in the gold market, you would know that without any question whatsoever, this is not it.

Ignore those writers who wish to sell a service by feeding on your fear. Gold is going to and through $1224.10 on its way to $1274-$1278. Following that it is on to $1650 and Armstrong and Alf’s numbers.

- Jim Sinclair

Fiat Currencies = Zero

"Fiat currencies don't usually start out that way, and those rare cases when they have were very short-lived. Societies usually start with high value commodity money such as gold and silver. Gradually, the government hoodwinks the population into accepting fiat currency by issuing paper demand notes that are redeemable in precious metals. These demand notes (currency) are really just "certificates of deposit", "receipts" or "claim checks" on the real money that is in the vault....

1957 Silver Certificate: (One Dollar in Silver Payable To The Bearer On Demand):



Once a government has introduced paper currency, they then expand the currency supply through deficit spending, printing even more of the currency to cover that spending ….. Then, usually due to war or some other national emergency, like foreign governments or the local population trying to redeem their demand notes (bank runs) the government will suspend redemption rights because they don't have enough gold and silver to cover all the paper they have printed, and poof! You have fiat currency."

Modern day Federal Reserve Note: (Paper & Ink:



- Michael Maloney from GoldSilver.com

Gold Will Hit $5,000 an Oz

"Let me get right to the point. Gold’s going to $5,000 an ounce.

I know that sounds preposterous to most people. In fact, some of you probably think I’m crazy.

But for a whole host of reasons, $5,000 may well end up being a conservative estimate.

So before you start posting comments that I’ve gone bonkers, hear me out…

In 2001, gold traded as low as $255 an ounce. Within eight years, its price had quadrupled to more than $1,100 an ounce. How many investors thought that was possible, or even likely? Probably not very many.

Yet, it happened.

What’s more, since hitting its secular bottom back in 2001, gold has posted a positive return in every calendar year. So far, the current bull market has been pretty orderly.

During the past 10 years, gold has indeed become the trade of the decade, beating out commodities, oil, high-grade U.S. corporate bonds, U.S. Treasuries, and yes, U.S. stocks."

- By Money Morning on January 14, 2010

S&P 400, Gold $2,500

"David Tice, chief strategist for Bear Markets, reveals his pessimistic view on the markets and what he's buying to hedge against financial crisis."

U.S Dollar is Toast

"Take a look at the following list of news topics:

-Tishman Real Estate to miss payment on a commercial loan of over $5 billion on a massive New York apartment complex, the 2nd largest default in commercial real estate loans in history.
-California declares an economic emergency.
-Employment figures stink.
-Apartment vacancies hit record highs.
-Foreclosures are setting new records.
-Consumer credit in the US drops a record $17.5 billion.

The US dollar is toast. Gold is headed to $1650 – $1764 now.

Remember, at $1764 1,000,000 mineable ounces of gold in production will have a gross worth $1,764,000,000.

That is real money. That is honest money."


- Jim Sinclair as seen on JSmineset.com

Expect Gold Volatility

"Brian Hicks, co-manager of the U.S. Global Investors Global Resources Fund, argues that gold could correct in the short term but that long term prices will head higher."