Dear CIGAs,
A few important items for you to consider this weekend:
If rules of the establishments make it expensive, difficult or time consuming for you to take delivery then you must take delivery of your gold and silver as fast as you can. You likely will have a problem if you wait, or cheap out.
Bail-in is the first step in the Western world experience of the "Great Levelling." The Great Flushing must proceed the Great Levelling.
The Federal debt ceiling suspension only goes through May 18th.
Jim Sinclair’s Commentary
Do you really believe the States of the United States Dollar Union are in better shape than the States of Euroland euro Union?
A basic premise, but the fact that we can print money to bail out banks while our communities are bankrupt and cutting police officers is tragic.
Jim Sinclair’s Commentary
CNBC is suggesting that the Yuan "could" take the crown from the US dollar. Why such heresy from a major MSM element? Courtesy of CIGA David Madisonstyle.
China’s Secret Ambition for the Yuan By Stuart Oakley | Managing Director at Nomura | CNBC – Fri, May 10, 2013 3:54 AM EDT
Earth shattering monetary stimulus from the Bank of Japan , a threat to the safety of European deposits (courtesy of the Cyprus bailout), weeks of fretting over U.S. spending cuts – 2013 has given financial market participants an awful lot to digest so far.
This probably explains why perhaps the most significant story of them all seems to have passed most people by – China, and the increasing role its currency is having in the world.
Few would dispute China’s end goal of having its currency, the yuan (Exchange:CNY=), become a genuine world reserve currency. Who wouldn’t want cheap access to world capital markets that reserve currency status brings? Not to mention cheaper transaction costs on international trade.
Indeed most spectators also understand China’s political motives in achieving reserve currency status for the yuan (more voting rights at IMF, World Bank etc). However, what does seem to be lost on the financial world right now is how quickly they are getting there.
Before we assess the steps China is taking to achieve this end, let’s get reacquainted with the world of foreign currency reserves.
Japan is adding a Ponzi scheme to a Ponzi scheme
US hedge fund heavyweight Kyle Bass has warned that Japan is careering towards a major debt crisis. By Denise Roland
10:12AM BST 09 May 2013
US hedge fund heavyweight Kyle Bass has warned that Japan is careering towards a major debt crisis. By Denise Roland
10:12AM BST 09 May 2013
Mr Bass, founder of $1.8bn hedge fund Hayman Capital, said some of Japan’s measures to boost growth in the deflation-dogged economy amount to "adding a Ponzi scheme to a Ponzi scheme".
He cited as one example the Japanese government’s use of a new form of debt known as Japanese compensation bonds, which Tokyo plans to repay through funds raised from future tax reforms.
Mr Bass, who famously made millions betting against the subprime mortgage bond market, has been shorting Japanese debt in anticipation of the country losing control of the bond market.
Speaking at the Ira Sohn investment conference in New York, the Texan financier warned that all the elements are in place for a debt crisis, and that it is now a matter of when.
"The beginning of the end has begun," he said.
Jim Sinclair’s Commentary
This isn’t exactly new news here.
The Unemployment Rate Is Much Higher Than They Tell You James Pethokoukis, American Enterprise Institute | May 10, 2013, 8:20 PM
The 7.5% US unemployment rate, at its lowest level since 2008, seems to be telling a story of slow-but-steady recovery after the Great Recession and Financial Crisis.
Unfortunately, the bulk of evidence suggests the “real” jobless rate is far higher. As the U-3 rate has fallen, so has the labor force participation rate, or LFPR. If the LFPR were at the same level as when the downturn began, the unemployment rate would be a stunning 11.3%.
Two critical questions: First, how much of the 2.7 percentage point drop in labor force participation since 2007 reflects structural forces rather than weak demand discouraging workers?
Second, is the key structural element mostly the aging of the US population or is it the shift of the workforce into Social Security disability?
A new study by Goldman Sachs, partly based on recent Federall Reserve research, offers some reasonable answers. The real jobless rate is probably more like 9%, still dreadful. And here’s why:
Jim Sinclair’s Commentary
God and gold, please save us.
"…Democratic supporters of a bill to repeal sections of the Dodd-Frank Act targeting derivatives, the complex financial transactions at the center of the 2008 financial crisis.
The legislation, which passed the House Financial Services Committee this week, would expand government backing for derivatives by permitting banks to sell them from their taxpayer-insured divisions."
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