Helicopter Money——The Biggest Fed Power Grab Yet

Jim Sinclair

My Dear Extended Family,      

This is not an easy read, but it is the most IMPORTANT read of your lifetime.

I have asked Editor Dan to post Stockman's article in total today on JSMineset because here is where we are now and where we are going in the future in a much larger way than anything before.

I have been looking for the reason for the Fed's Chair visit at the White House recently. What this will do is bury the fiat currency system in terms of buying power. It is already dead as a storehouse of wealth. The carrot on the string to own money, interest rates, are presently history. This is what the present administration and its economic clone democratic candidate are counting on. This is the substance that the meeting between the Federal Reserve and the White House was all about. This has just been made public down under by a Fed female personality where it is least apt to be publicly discussed. It is simple money printing hidden in complexity so you have to change your understanding of the expanded QE theory. If you will not first read this then make the effort, you are lost. Please make that effort.

Unless we get rid of the Fed we the 99% are all dead financially and literally.

There is no better reason to own the limited supply of gold that is above ground and therefor freely obtainable. It is the reason that this gold and silver market has many more years to move forward to the final price determined not in the paper gold make believe futures market, but the Real Free Gold cash physical market.

The bull market that never ended has many more years in front of it than you can imagine and a final and permanent price dictated by Russia and China. This is the world war of all world wars where there are no borders. This is why this is the last time to protect yourselves, the gold rally that you do not sell. This financial power grab of all historical power grabs that you must understand, no matter how many times you must read the article below, will be discussed for years to come by the Freedom Bloggers of the modern world, as Patrick Henry was to the foundation of the Constitution. This work is to save you from yourselves via knowledge. This time it is the knowledge of the plan accepted by Chair Yellen at the recent and rare White house meeting between the occupant of the Oval Office and the occupant of the Chair.

We will work to help you, but this you must understand if you are to avoid the execution of everything we hold from the formation of this nation as true, good and holy. This is the end of all that. It has come. It is not coming in the future. It is here today.

It has the power to be the end of elections and permanent power resting between the oval office
and chair, making the 1% the new aristocracy of the globe. You think Putin does not understand this? This proves one more time there are no atheists in the fox hole. War in a different form is now being practiced and all out application is close. GOTS while you can.

The end:

Standing watch, The western economic Texas Ranger and the man with the longest career in finance and metals anywhere - 56 years. The Sinclair/Holter combined effort to save the 99% from the 1%.

Helicopter Money--The Biggest Fed Power Grab Yet 
by David Stockman * July 13, 2016

The Cleveland Fed's Loretta Mester is a clueless apparatchik and Fed lifer, who joined the system in 1985 fresh out of Barnard and Princeton and has imbibed in its Keynesian groupthink and institutional arrogance ever since. So it's not surprising that she was out flogging--albeit downunder in Australia-- the next step in the Fed's rolling coup d' etat.

We're always assessing tools that we could use," Mester told the ABC's AM program. "In the US we've done quantitative easing and I think that's proven to be useful.

"So it's my view that [helicopter money] would be sort of the next step if we ever found ourselves in a situation where we wanted to be more accommodative.

This is beyond the pale because "helicopter money" isn't some kind of new wrinkle in monetary policy, at all. It's an old as the hills rationalization for monetization of the public debt--that is, purchase of government bonds with central bank credit conjured from thin air.

It's the ultimate in "something for nothing" economics. That's because most assuredly those government bonds originally funded the purchase of real labor hours, contract services or dams and aircraft carriers.

As a technical matter, helicopter money is exactly the same thing as QE. Nor does the journalistic confusion that it involves "direct" central bank funding of public debt make a wit of difference.

Suppose Washington issues treasury bonds to the 23 primary dealers on Wall Street in the regular manner. Further, assume that some or all of these dealers stick the bonds in inventory for 3 days, 3 months or even 3 years, and then sell them back to the Fed under QE (and most likely at a higher price).

So what!

The only thing different technically about "helicopter money" policy is the suggestion by Bernanke and others that the treasury bonds could be issued directly to the Fed. That would just circumvent the dwell time in dealer (or "investor") inventories but result in exactly the same end state. In that event, of course, Wall Street wouldn't get the skim.

But that's not the real reason why helicopter money policy is so loathsome. The unstated essence of it is that our monetary politburo would overtly conspire and coordinate with the White House and Capitol Hill to bury future generations in crushing public debts.

They would do this by agreeing to generate incremental fiscal deficits--as if Uncle Sam's current $19 trillion isn't enough debt--which would be matched dollar for dollar by an increase in the Fed's bond-buying or monetization rate. That amounts not only to teaching children how to play with matches; it's tantamount to setting fiscal forest fires across the land.

There are a few additional meaningless bells and whistles to the theory, which we will dispatch in a moment, but the essential crime against democracy and economic rationality should be made very explicit. To wit, this is a central bank power grab like no other because it insinuates our unelected central bankers into the very heart of the fiscal process.

Needless to say, the framers delegated the powers of the purse-spending, taxing and borrowing--to the elected branch of government, and not because they were wild-eyed idealists smitten by a naïve faith in the prudence of the demos.

To the contrary, they did so because the decision to spend, tax and borrow is the very essence of state power. There is no possibility of democracy--for better or worse--if these fundamental powers are removed from popular control.

Yet that's exactly what helicopter money policy would do. Based on some Keynesian gobbledygook about the purported gap between full-employment  or "potential GDP" and actual output and employment, the Fed would essentially set the Federal deficit target.

In practice, it would also likely throw-in some gratuitous advice about its composition between tax cuts, infrastructure spending and social betterment. The recommended mix would arise from an economic whim, of course, as to whether the FOMC in its wisdom thought household consumption or fixed asset investment needed to be goosed more.

Alas, the peoples' elected representatives would relish this "expert" cover for ever bigger deficits and the opportunity to wallow in the pork barrel allocation of the targeted tax cuts and spending increases. There is not a hard core New Dealer turning in his grave who could have imagined a better scheme for priming the pump.

And that's not the half of it. Helicopter money turns the inherently dangerous idea of fiscal borrowing in a democracy into an outright monetary fraud.

Even "New Deal" FDR worried about the rising public debt and "Fair Deal" Harry Truman positively loathed it.

Likewise, the power-mad Lyndon Johnson essentially vacated the oval office when he finally agreed to a substantial tax hike in early 1968 order to stem the deficit hemorrhage from his guns and butter policies.

Even the greatest deficit spender of all time--Ronald Reagan--thought the resulting explosion of the public debt was half Jimmy Carter's fault and half due to defense spending increases, which didn't count in his unique way of reckoning the national debt.

So what makes helicopter money so positively insidious is that it relieves elected politicians entirely from their vestigial fears of the public debt and from accountability for the burdens it imposes on future generations. And that's especially true owing to the Bernanke fillip.

Folks, the Bernank is no hero whatsoever--notwithstanding his self-conferred glorification for the courage to print. He is a demented paint-by-the-numbers Keynesian who has a worse grasp on the real world than the typical astrologer.

Indeed, the crucial element in his helicopter money scheme, as explained in a recent Washington Post op ed, is an explicit and loud announcement by the Fed that the incremental debt will be permanent. It will never, ever be repaid--not even in today's fictional by-and-by.

Providing a purportedly scientific monetary cover story so that elected politicians can issue non-repayable public debt is a truly reprehensible idea in its own right. But the reason for it is downright lunatic.

To wit, unless current taxpayers are assured that future taxes will not rise owing to Washington's helicopter money handouts and tax breaks, says the Bernank,  they won't spend the government gifts they find strewn along the path of flight!

That's right. When a road building boom from helicopter money appropriations results in surging demand at the sand and gravel pits, the small-time businessman involved won't buy any additional trucks or hire any additional drivers until Washington assures them that they won't pay higher taxes 20 years hence!

Only in the Eccles Building puzzle palace does such drivel not elicit uncontainable guffaws. Only in Sweden do they give Nobel Prizes for the academic obscurantism called "rational expectations theory" that is the basis for Bernanke's toxic assault on fiscal discipline and sound money.

At the end of the day, the operative words here are "groupthink" and "coup d' etat". These baleful conditions flow from the essential predicate of modern central banking.

We are referring here to the erroneous notion that economic wealth can be permanently elevated through more public and private borrowing and that central bank falsification of financial asset prices will facilitate the achievement of those ends.

In fact, as we have repeatedly demonstrated, the Fed's purported macro-management of the economy and business cycle is simply a variation of the old Keynesian parlor trick that is over and done.

That is to say, so long as households and businesses have unused runway on their balance sheets, they can be induced to leverage-up with cheap money, and thereby be enabled to spend more for consumption goods and capital goods than could otherwise be financed out of current incomes and cash flows, respectively.

But we are now at Peak Debt. There is no balance sheet runway left.

Accordingly, the impact of the massive flow of new central bank credit and the Fed's sustained falsification of financial asset prices after 2008 never left the canyons of Wall Street. It did not stimulate the main street economy one bit; it merely generated vast windfalls to the top 10% and 1% who own most of the financial assets, while fueling ever more unstable, extreme and dangerous financial bubbles.

In short, the real issue is that the Fed was foolishly given a so-called Humphrey-Hawkins mandate to deliver full-employment and stable inflation 40 years ago. But in today's global economy and financialized world, the FOMC's crude tools of interest rate pegging, bond-buying and wealth effects pumping are utterly unsuited for the task.

And well they should be. In the first place, no politburo of 12 people can define full-employment in a gig-based, labor-driven globalized economy. The Fed can do nothing about an auto job that migrates to Germany because American consumers like Mercedes cars better than Cadillacs.

Nor can it fully employ a worker who scams the social security disability system or a road warrior who prefers to work only six months per year and party the rest of the time. Likewise, fiddling with interest rates can't help a McDonald's fry cook who gets canned because the Seattle City Council foolishly raised the minimum wage to $15 per hour and invited robots to take over the job.

Pure and simply, there is no such measurable as "full employment".  Nor is there a chance in the world that the Eccles Building can cause the true creators of jobs--enterprise, capital and technology--to make more of them by fueling every larger financial bubbles.

As for the inflation side of its dual mandate, there is not a word in the 1977 Act that says a 2% annual gain in consumer prices is what Congress had in mind-even in the midst of its confusion about what central banking can actually do.  I remember well voting against it at the time, and not hearing a single speech in behalf of the magic 2%.

That's because the sacred 2% inflation target was only adopted by the Fed 34-years later in 2011 under Bernanke's relentless prodding. In fact, the very idea of "inflation targeting" is a stupid academic hobby horse invented by Bernanke in the 1990s- long after the Act was passed--and which bears no empirical relationship to the rate of GDP growth, jobs or anything else.

But it is a thinly disguised excuse for a power grab. That is, the Fed has been massively intruding upon financial markets and distorting and deforming prices in the capital and money markets for nearly two decades now on the pretext that there is a "shortfall" in the inflation rate.

Well, there hasn't been. Not even close.

Based on what we call the "flyover CPI", which weights the four horseman of inflation--energy, housing, medical and food--at 64% or by what most of America spends its paycheck on, inflation has been 3% or better for nearly two decades.



So the single most important thing that could be done by Congress to get the American economy functioning again would be to repeal the Humphrey-Hawkins Act and thereby eliminate the Fed's legal basis for its rolling coup d'état.

At the same time, it could launch a modern equivalent of the Pecora hearings of the 1930s. Only this time they would be focused on the Fed's role in generating massive Wall Street bubbles and their subsequent devastating collapses--including for what will soon be the third time this century.

Such a probe could readily bring to the surface what amounts to the raging elephant in the room of national economic policy. Namely, that the Fed's massive intervention in the financial markets and its feckless pursuit of ZIRP and QE is a battering ram of dangerous and worsening financial instability.

But the Eccles Building and its 12 branch offices are so mummified in Keynesian groupthink that they cannot even see the obvious. Thus, in touting its next grab for helicopter money power, the aforementioned Cleveland Fed President let loose of the following whopper:

Maintaining stability in financial markets should not be an explicit goal for the Federal Reserve, which should use interest rates to head off a crisis only if more precise and better-suited tools fail, a top Fed official said on Tuesday.......Cleveland Fed President Loretta Mester said in remarks prepared for delivery in Sydney, adding that the Fed's key price stability and maximum employment goals usually align with its desire for a stable financial sector.

Oh, c'mon. The purpose of the systematic financial repression by the Fed and the rest of the world's central banks is to flush savers and investors out of the money market and out the risk curve.

That's why there is $13 trillion of subzero sovereign debt and growing by the day. That's why there is a mad scramble for yield; and that's why the global financial system is riven with FEDs (financial explosive devices) waiting to be ignited.

Today, Fitch Ratings spotlighted one more example of the Fed's destructive regime of Bubble Finance at work.

The trailing 12-month junk-bond default rate hit a 6-year high in June at 4.9%, says Fitch Ratings, highlighting the ongoing pain from the oil patch.

Energy companies defaulted on $28.8 billion of debt the first half of this year, Fitch calculates, putting the sector's default rate at 15%. For exploration and production, the rate is 29%.

A 29% default rate in the E&P sector!

Does Ms. Mester really believe that in a honest free market several hundred billions of high yield debt could have been sold by the rank commodity speculators who ply the shale patch?

Not in a month of Sundays.

By contrast, modern central banking is a doomsday machine of financial booms and busts and ever intensifying financial instability. One of these days--perhaps when the current mother of all bubbles implodes--even the somnambulant Congressional Republicans may figure out the real enemy of American prosperity and productive capitalism.

That is, a rogue central bank that has seized plenary financial power already, and that is so mummified in groupthink that it will stop at nothing in the expansion of its remit. Even to the extent of sending clueless career apparatchiks like Loretta Mester to the ends of the earth to flog the unspeakable folly of "helicopter money".

Link to full article...

黃金未來3至5年將會如何初步目標3500美元？

Jim Sinclair

著名黃金分析師Jim Sinclair近日撰文指出，把黃金和債券市場的繁榮和蕭條，股市崩潰拋開，忽略政客們的表演，不要太看重高頻交易和市場操縱。應該關注黃金長期以來的走勢以及背後的推動力量。

黃金1971年來經歷了三個階段

第一個階段，黃金由1971年的約42美元升至1980年的800美元上方。在貨幣大量發行，債務，赤字，和戰爭的影響下，以及對美元信心喪失的推動下，黃金大幅上漲。

第二個階段：金價在1979-80達到頂峰後逐步走低，延續了20年，在1999年和2001年構築雙底。

第三階段：黃金上行脫離2001年底部（255美元左右），在2011年8月升至1900上方。隨後回撤至1200水平，分別在2013年6月和12月形成雙底。

黃金未來3-5年將會如何？

可能性一：金價繼續上漲

黃金沿上方綠色通道繼續上漲。這種情況極有可能發生，除非全球通縮引起經濟蕭條，政治家和銀行家竭力避免的核冬天出現。

支撐金價走高的因素還包括：

1.黃金升至2011並不類似1980年的泡沫。金價在2011後的下跌看起來像一個調整，而不是泡沫後的破裂。

2.利率仍接近於零，而1980年黃金崩潰時，利率處於紀錄高位。這兩個時段的經濟狀況大不相同。

3.當前的貨幣政策相當寬鬆，但上世紀80年代，貨幣政策相對來說偏緊。

4.80年代股市已經下跌或盤整超過十多年，而當前的股市已經持續上漲超過了5年。

5.技術指標顯示（月線圖上RSI和隨機指標），長期金價在去年已經觸底，應當關注黃金被超賣的實例。

可能性二：金價像80年代形成泡沫那樣繼續下跌。這幾乎不可能。

高盛這樣的投資銀行或其他儲金銀行處於自私自利的目的預計金價將走低，至少在抓緊時間建立大量頭寸，從大幅上漲中獲利前這麼做。應該對這樣的預言保持懷疑。

從技術圖表看，黃金自2011年來持續下跌。一些人認為金價會繼續下跌10至20年。但隨著債務上升，債券貨幣化，食物和能源通脹，中國和俄羅斯大量買入，全球政治不不穩定性增加，金價走低可能不會出現。

我們知道，美聯儲和西方多數央行希望金價保持穩定或者降低，這樣他們發行的債務貨幣就不會顯得太疲軟。他們可能製造金價的大幅下跌，但目前不再可能。

Jim Sinclair認為黃金初步目標位於3500美元

當前的政治經濟狀況和1979/80時期大不相同。最好的類比是，50年前，當越南戰爭升級時，一加侖汽油價格為25美分，餐館裡一杯咖啡值10美分，體面的中產階級工資為2.5美元/小時。但隨後的二十年，多數人的生活改變了，變得困難。消費物價大幅增長，儲蓄的購買力被摧毀，人們喪失了對政府和美元的信心。

未來五年，黃金的價格將大幅走高。 Jim Sinclair的初步目標為，黃金到2016/19年升至3500美元。如果政府採用高通脹來處理大量債務，金價可能走得更高。

如果你不相信黃金，也有其他選擇，如選擇銀行存款，但每年只能得到1.0%的利息。

http://finance.ifeng.com/

Jim Sinclair 23-Nov-2013

My Dear Extended Family,    

The following was written at Changi Airport in Singapore on route to Dar es Salaam, East Africa, November 22nd 2013/

My presence in Singapore is a mission for us. Having reported to you the six locations where cash and physical only exchanges for silver and gold were to be established, I did not leave it at that. My staff and I have contacted each proposed exchange in order to determine which of the six held the best promise for the gold market transition phase for price discovery away from paper gold and to physical gold material.

My original interest was to join that exchange on behalf of TRX. That desire transmuted itself into putting my shoulder behind that exchange which offers the global window to the real price of gold. That exchange in my opinion is the Singapore Physical Precious Metals Exchange, headed by CEO Victor Foo.

Too long has gold suffered from trading in its paper form which was originally conceived of and has continued to live as the means of manipulating the paper price of gold for the benefit of the few.

The time is at hand for Free Gold. The mechanism of freeing physical gold from price slavery to paper gold is the present time deletion of future exchange warehouse supply as the real cash price of physical gold exceeds the spot futures paper contract by the cost of shipping, the cost of insurance, and the cost of recasting of Western form 100 ounce gold bars into Asian product demand form.

The reported shipment of one billion in gold recently from the USA to the Rand Refinery in the Republic of South Africa was not junk jewelry form as reported. It was rather in the form of 100 ounce Comex bars being shipped to the Rand Refinery for recasting into Asian product, and was sold mainly in China as gold rose in price.

I was there as a member of the Comex exchange in March of 1980, the last time the Comex board of directors panicked over the threat of the Hunt Brothers asking for delivery of both gold, silver and copper in excess of, or equal to, the then Comex warehouse qualified for delivery supply.

Asian demand for physical gold is now in excess of supply and the declining Comex warehouse supply qualified for delivery. This is the mechanism for the emancipation of Physical Gold from the 41 years of price slavery to paper gold due to the cheap paper mechanism to manipulate the world gold price.

With the present time and predictable need to change the delivery mechanism on the COMEX to cash in order to avoid default on delivery, the reign of paper gold is ending. With this end we have the arrival of physical gold as the new discovery mechanism for the price of gold.

For the transition to take place it is necessary that we have functional global platforms for the trading of physical metals between peers of merit and a transparent price for global physical gold that exists nowhere for even professional public consumption.

There has been a clarion call from the long suffering holders of gold shares and investment gold for the Chief Executive Officers of gold companies to identify and take definitive action to end the slavery of the gold price to the mechanism of manipulation, the paper gold market. The advent of global platforms for and the true revelation to the gold public of the real gold price, the physical cash price on a 24 hour basis in the answer.

The cost of trying to manipulate this public physical price wherein delivery must be immediately made or payment presented immediately in full makes it too expensive to manipulate the gold price on a consistent basis. The paper gold market cannot move far away from the real physical price when the real physical price is globally known. Therefore to manipulate price the tricksters will have to participate on the physical exchanges thereby increasing their cost of their operation by orders of magnitude. That huge increase in the cost of moving price at will is the beginning of the end of paper gold ruling the physical gold price. That substantial increase in the cost of operation is the beginning of the physical gold market taking the position as the true discovery mechanism for the global price of gold. It is the beginning of the end of the reign of paper gold.

We CEOs of gold companies owe our stockholders economic production and all of our efforts to defeat the plans of the tricksters and their paper machinations that cost near to nothing and results in gold moving such as $1900 to $1200 when the true demand for physical over ground gold was on the rise and not on the fall. Where demand exceeded supply as paper gold was forced by bullies down from $1900 to $1200. This dichotomy in price is only viable via paper gold manipulation and must end here and now. To that object of "Free Gold" and the economic production of gold, I dedicate all my strength, all my contacts of 53 years in the business, all my knowledge of how to, and my capital.

Respectfully yours,
Jim Sinclair

Jim Sinclair: Gold Will be $50,000 per Ounce, Gold Confiscation, Dollar Gets Hammered and More

According to gold expert Jim Sinclair of JSMineset.com who predicted at sub-$300 gold in 2000 that gold would trade at $1650 by 2011, is now stating that by 2016, “Gold will be $3,200 to $3,500 an ounce.“
By 2020, Sinclair predicts, “Emancipated gold will be $50,000 per ounce.“   As far as gold confiscation goes, Sinclair says that Its not going to happen, but a windfall tax could definitely be in the cards. Join Greg Hunter as he goes One-on-One with renowned gold expert Jim Sinclair.

Moscow exchange launches precious metals trading

繼星架坡最近成立的黃金倉庫後,

莫斯科又有貴金屬市場成立

未來貴金屬市場風起雲湧

Jim Sinclair

Russia takes the lead in anti manipulative gold actions. Russia also marks its gold inventory toy market price. They have to be very unhappy with the gold banks and the US Fed.

War takes many forms and gold is outright war.
China will follow with a physical bullion exchange. This is dynamite for the real discovery of the price of gold and silver free from no-gold, no-silver fraudulent paper exchanges.

The Russians are going to launch a cash bullion market. Maybe they know what the Fed has done to one of their major's assets and now intend to bust the manipulative paper game.
This mechanism will go a long way towards the emancipation of gold from paper.

Safety is in the Brics or quasi Brics for the next 3 years or more.

Moscow exchange launches precious metals trading  Published time: June 27, 2013 12:49
 

The stock exchange is going to start trading gold and silver by the end of this year, and platinum and palladium in 2014. Trading physical metals is expected to boost liquidity in the market and attract more participants.
Russia has so far only been trading futures on gold and silver, not dealing with real metals.

Gold has been occasionally sold on the over-the-counter market and the only benchmark for price was the Central bank’s quotations, Gazeta.ru reports.  Now gold will get the market price in rubles.

“We are a gold-exporting country. We produce a large number of precious metals. However, the trade volume is still significantly lagging behind our peers. Our commodity market is not transparent," Gazeta.ru quotes the director of the commodity market of the Moscow exchange, Mikhail Orlenko.

Spot metal trading will be based on the platform of the existing foreign exchange market. Credit institutions licensed to conduct operations with precious metals and non-banking professional brokers will be the main players on the market, Gazeta,ru quotes the presentation by the bourse.

The Moscow stock exchange plans to transport precious metals from production companies, keep them in its own stores and deliver to the buyer the next day.

The launch of trading in gold and silver on the Moscow exchange will boost liquidity on the market and attract more participants by these new financial instruments, RBC quotes Sberbank as commenting.

http://rt.com/business/moscow-exchange-trading-metals-326/

Jim Sinclair Selling Everything to Buy Gold

With gold breaking below $1200 , legendary gold trader Jim Sinclair has sent an email alert to subscribers advising PM investors that knowing the system is in collapse, he intends to buy gold with “every asset at my disposal today and tomorrow, and I suggest the stout of heart do the same“.


From Jim Sinclair:
The economic system is failing, and to counter the now publicly perceived failure, central planners are manipulating the symptoms and not the problem.

Gold has never been easy.
Gold is the tell tale of a broken system.
Gold therefore is the barometer of the risk factors of economic conditions.

Therefore central planners must make, via paper gold, every effort to make it say, “All is Ok.” For this reason I intend, knowing the system is in collapse, to buy gold with every resource I have at my disposal today and tomorrow.

I suggest those of stout heart do the same.

To the others who are committed to their limit, hunker down one more time knowing that in no more than the summer a brand new and most powerful bull market in gold will be at hand.

Respectfully,
Jim

Update On Gold From CIGA Bo Polny 10-May-2013

 今次好準吓喎!

Posted May 10th, 2013 by Jim Sinclair & filed under General Editorial.

Dear Friends,

Today, May 10, 2013, as you are all aware, gold and silver dropped as was posted April 19, 2013: http://www.jsmineset.com/2013/04/19/1300-goldnever-again/

It stated… “As you are aware, I sold my silver at $49 and gold at $1900. Since January 2013, I have provided you my Gold Updates. Today I provide you what I expect to see from Gold these next few weeks. Please see the below Gold chart with specific dates and approximate price targets that might/should be reached on those specific dates.

Please note the blue chart arrows are date sensitive, not price sensitive. As the dates are hit these waves will end and change direction regardless of price.

The next two dates to watch for are as follows:

(I) May 2-3, 2013 – INTERMEDIATE TOP

(II) May 10-13, 2013 – PULLBACK BOTTOM

NOTE: PRICE TARGETS MIGHT VARY, DATE WILL NOT. WATCH DATES.”


This drop will mark the low off the May 3, 2013 high and turn date.  I am providing you an updated chart on GLD for your careful review:

For GLD/Gold, the target for the bottom to re-enter long is Monday, May 13, 2013, HOWEVER there is a possibility of one extra day down into Tuesday, May 14, 2013 for the FINAL LOW.  Therefore, the safest re-entry would be Monday only if Gold is closing UP at market close or Tuesday’s close if Gold closed down on Monday.   After Tuesday, it is all over… that is key!
For SLV/Silver, silver’s current price is NOT FAR FROM A SUPPORT BREAK!  Like Gold… there is the possibility of ONE EXTRA DAY DOWN into Tuesday, May 14, 2013 for the FINAL LOW.  Therefore the safest re-entry for silver is the same as gold above.

Please remember, price is not as important here as time!  If you wait for “your” price, you may never get it!  Pay close attention to the day count posted above and the next UP CLOSE and this will give you confidence in your trade.  Buy the up close, the price is the price period! 
For those of you who buy and hold, sleep well my friends and know that your decision is a wise one into the year 2020; gold and silver however will have a very long and bumpy road ahead! Lastly, the “true” Bull Run you all wait for is not just yet, the general markets will first correct.
I wish you all well.

Have a great day!

CIGA Bo Polny

An Update On Gold From CIGA Bo Polny

要留意住呢幾日
Jim Sinclair

Dear CIGAs,

I am writing to provide an update to the original post on JSMineset dated April 19, 2013. Click here to view the original post…


In the gold chart provided back in April, there were two dates: the first May 2-3 and the second May 10-13, 2013 were noted as turn dates.
May 2-3 was to mark a short term high. If you check the price of gold you will see it did! Gold’s daily time clock from the rise off the April 15, 2013 low ended May 3, 2013.

The next date, May 10-13 is to mark the low off the May 2-3 high for both gold and silver.  

With regards to silver, this is a time for extreme caution! What is next? May 9-10, 2013… the drop! The question is how low will it go? The bottom comes in either Friday May 10, 2013 or Monday May 13, 2013. Will support at $22 hold or not? That is the big question.  Again until May 13, 2013 has passed, silver is extremely vulnerable to a support break! 

Gold’s low will hold due to its impressive rise since its bottom April 15, 2013.


Have a great day,
CIGA Bo Polny 

塞島事件是否用來強迫儲蓄者轉向消費﹖

Sinclair - Cyprus & Why MSM Is Being Used To Frighten People (2013-03-27)

Original Source

Jim Sinclair 認為今次塞浦路斯的銀行風波有另一個啟示。今天美國的貨幣流轉速度 (velocity of money) 是過去半個世紀以來最低。眾所周知，若要刺激通脹，就必須使貨幣流轉速度急劇上升。貨幣流轉速停滯不前，則是導致經濟衰退的主要原因。

 

貨幣流轉速度的變化可以是非常突然。過去的貨幣歷史顯示，每次發生超級通脹，首先出現的都是一段時間的呆滯貨幣流轉形勢。然後由於總總的刺激措施，人們對貨幣失去信心，這個時候通脹速度就會突然急劇加速至超級通脹程度。到這個時候，貨幣就會崩潰。

 

在今次塞浦路斯的銀行出現問題，最值得注意的就是大眾媒體好像是有意把問題誇大。以往發生任何銀行風波，傳媒都盡量以大事化小，小事化無的模式來報導。今次傳媒一反常態，大事宣揚塞國銀行的存戶怎樣成了挽救行動的犧牲品，有可能是官方有意借勢給所有儲蓄人士這個信息，“你們存在銀行的積蓄隨時可以變成烏有，因此你們最好快快拿去消費。”

金融風暴至今，政府都是以貨幣量化寬鬆的形式來向銀行注資。雖然可以因此避免銀行倒閉，但對推動實體經濟毫無幫助，因為銀行收到這筆資金，只用來填補銀行帳簿裡的龐大調期衍生合約的虧損。政府向銀行注資更多都不足以填補這個無底深洞。

 

依 賴銀行來推動經濟證實不能收到效果。（即使這筆挽救銀行的資金流出市場，都只用作推高股市和資產的價格）。政府可能明白到只有刺激消費才能把經濟衰退扭轉 過來。政府希望今次直接打擊銀行的存戶，使所有儲蓄者搖身一轉變成消費者，可以達到預期的效果，終於令經濟復甦。當儲蓄者明白到他們龐大的積蓄隨時可以被 沒收，他們就寧可快快銷耗好了。

當然，此計謀有可能弄巧反拙。從銀行戶口調走的資金不一定會是用來消費，而有可能是用來買金。

Russia & China Loot Western Gold While JP Morgan Sells Silver

 Jim Sinclair講出,要打擊 黃金市場,先要打擊 白銀,原因白銀市場佔有層面廣,有心人要銀價下跌的負面情緒帶到黃金身上


Today Jim Sinclair told King World News that Russia and China are looting Western gold while JP Morgan sells silver.  He also said that all of this chaos is taking place as central planners conceal serious financial problems from the general public.  Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say.

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Sinclair: “If you watch the market throughout the night and into the morning, as we have to, there is only one conclusion you can come to, and that conclusion is that this takedown has been totally orchestrated.  It has been executed using tremendous strategy, and it was perfectly timed.

This has involved entities acting in unison for the purpose of affecting price and psychology, while at the same not necessarily selling volume.  This has been a pure operation...

“As an example, gold was at $1,603 on Monday night and very near $1,600 in early US trading on Tuesday.  Gold was then taken down nearly $25 in the normal manner that we have seen in previous operations.

There was nothing happening in any related market which would justify such a move.  This type of operation was very reminiscent of the ‘Hail Mary’ play such as the one just seen in Cyprus.  But the truly disturbing thing we are witnessing at this time is the sheer amount of effort being put into making everything appear just fine. 

A contrarian would have to come to the conclusion that there are some very frightening and serious problems being hidden from the general public.  Regardless, what we have seen in the recent takedown in gold is without any doubt a coordinated operation, and all of this in an effort to make the US dollar look better.”

Eric King:  “Jim, with regards to gold sentiment we now have 45% less bulls than what was seen at the peak in 2011.  Silver has a staggering 53% less bulls than its peak in 2011.  When you see this type of active government intervention in these key markets, with that sentiment as the backdrop, what do you make of it?”

Sinclair:  “From an investment standpoint, fortunes have been made when items have been purchased that are out of public favor.  Meaning items which had the same type of bull/bear comparisons.

But I think what we have to consider here is there are major sovereigns in the gold market.  You have both Russia and China with a very significant interest in terms of accumulating physical gold, or what true wealth still remains in Western central bank vaults.  At the same time you have the West which has a significant interest in depreciating the price of gold.  So you literally have a war going on in the gold market.

The real turn in the gold market, which I think is not far away, will occur when either Russia, China, or both, feel that the West is depreciating gold to a point where they would simply take everything in the market that was for sale.  I no longer believe the gold market is a group of wealthy players, but, instead, it is now very much a political game, and the various players have as much money as they want to create for this game.

So it’s going to be very interesting to see if the Russians, having seen what has taken place in Cyprus, will take abuse in the gold market and back away quietly.  I think it’s going to be determined this week whether China and Russia are in accord with the depreciation of the price of gold, which has clearly been an operation from $1,900 down.  This has been a strategized operation, and something that if we were to engage in with a common stock, we would be arrested.”

Eric King:  “Jim, I wanted to ask you about silver and what is happening in that market?”

Sinclair:  “You can clearly see that from the day the JP Morgan suit on silver manipulation was basically thrown out for the second time, the silver market has seen an explosion of selling and it has been trading very heavy. 

So the volume of selling has risen constantly since that plaintiffs against JP Morgan attempted to have the suit reinstated, but it was thrown out for a second time.  People have to remember it is easier to push the gold market around if you can make silver look weak.  But I still believe we have seen the lows already in the silver market.

People that watch the gold and silver markets have to understand that silver is more widely owned than gold.  So you can create a significant amount of negative public sentiment more so in the silver market by making it look weak, rather than in the gold market.

The gold market is like a joust.  It’s like the knights of old, fighting.  Yesterday, three banks downgraded gold.  This went along with the push to the downside.  So, again, the takedown was totally coordinated.  Yes, these operations are completely illegal and totally unethical, but that doesn’t matter in what has now become our brave new world.”

Recap of Jim Sinclair’s NYC Meeting: You Have 2 Years to Get Out of IRA’s, Silver to See Orgasmic Rally

*Updated with more in-depth recap from SD reader GL
For those unable to attend the legendary Jim Sinclair’s NYC Q&A meeting yesterday, we have provided SD readers an exclusive full recap summary of the meeting below.

While 5 hours of Jim Sinclair’s wisdom could never be conveyed in a single post, of note- Sinclair urged PM investors that they have 2 years to remove your IRA funds before they are lost to forced Treasury allocation, and to stop contributing now.

Sinclair also confirmed he sees a triple digit future for silver, but that silver’s rise will be orgasmic- a rapid climax rally followed by a dramatic decline. 
Full recap of Jim Sinclair’s NYC meeting is below: 


Courtesy SD reader StackerX:
I arrived at the Sutton Room in the Hilton Hotel at about 1:30pm. I figured it would be better to be 30 minutes early than a minute late and too my surprise the room was practically full. Once I entered the room I was also surprised Mr Sinclair had already started answering questions. Their were roughly 800 people at this meeting and hundreds of questions answered. I would say a quarter of the questions revolved around silver. Anyway the Q&A ran till about 5:30pm. Here are some of the notes I was able to capture while there:
1) Cyprus was a major mistake by the IMF. This was meant to shift the onus from debt monetization to the depositors. This means you should move your money out of the banking system and into something else like gold. He also said if Cypus was successful it would have caused the Dow to plummet down to as low as 1000 points because it would be a shift away from QE. QE would be second.
2) IRA timing question. Sinclair: “you have 2-3 years.” Says stop contributing. Get out. Doesn’t have to be right away. You have 2-3 years.
3) FDIC can’t meet its obligations. It could handle one or two bank failures but it cant handle a systemic crisis.
4) Mining production good to start now. 5 years ago maybe not so good.
5) Gold valuation math question: Dividing current fiat by amount of gold held = $15-17,000 gold? Sinclair: too soon to tell. Do this in 2015. This calculation may misguide you now.
6) Gold Confiscation possible? Sinclair: short answer “No” because gold has a different role today then it did back in the 1930′s. Back then they confiscated gold to increase the money supply. “Gold doesn’t function like that anymore”. Sinclair doesn’t believe their will be confiscation. Can’t comment on Taxing it instead.
7) Gold coins less likely counterfeit than Gold Bars.
8) Gold only asset to appreciate.
9) Gold will find its way back into the monetary system
10) Gold price to look for: $1517 and $2021.
11) Sinclair on Silver: Silver will rise past $50. It will rise as gold goes higher. Silver is not a monetary metal. The price of silver is based on the paper markets, because of this the supply is infinite. “The high Silver price wont be fulfilled”. “He cant agree on a really high Silver price”.
12) Why doesnt someone/ Billionaire try to corner the Silver market? Sinclair: because they will end up like the Hunt brothers.
Brings up a Jesse Livermore example where he was once pressured to take delivery. He said Livermore was a gentlemen and refused. Said other billionaires probably don’t want to go down in history as the person who crashed the Comex.
If the Hunts took delivery they may have ended up behind bars. When you break an exchange it creates a false price upwards. Problem with a Comex crash is it will go up but then crash down. He said it would be “orgasmic” lol. It is better to have a steady rise up!

13) Gold storage companies may become unethical like any other company.

14) Question about Gold Silver ratio. Sinclair: “He doesnt believe in ratios”

15) Sinclair is more of a believer of gold.

16) What about Silver? ” Silver will also do well”

17) Gold will be revalued by the market

18) Their has never been a nationalized mine that made a profit.
19) Remonetization of Silver is unlikely.

20) Yes physical Gold and Silver can run out.

21) Triple digit Silver a myth? Sinclair: Not a myth. But wont hold. $500 Silver probably wont happen.

22) Dow high because of liquidity. (floats all boats)

23) Dow could have a reaction lower sometime soon but then go higher.
24) Significant Gold targets: $248, $1650,

25) Gold was a utility in the 50′s

26) Miners are a great opportunity because they are smashed. Even with a market crash they cant go much lower.

27) QE pullback? Stopping QE creates a black hole. No limit to QE

28) The Fed only has two tools: Debt monetization and Gold revaluation.

29) Gold bull run cycle to end by year 2020-2021

30) Glass Steagall wont come back.

31) He believes Hyperinflation can occur. He believes if we have Hyperinflation it will only last 3 months. “It will be a very ugly experience”. Also said it would be short and violent.

32) Euro will outperform Dollar because they are practicing Austerity.

33) Said their is no solution to over the counter derivatives. He said a derivative is like a knot in a string that loops. He said the collapse of Lehman caused the loop to be cut.

34) 5 year window for BRICS to take over

35) He said next target for Gold was $3,100-3,200. Below $3500 is a buy. By 2015-17 Gold will be roughly $4000-4500.

36) He said if you are a Miner stock holder you must act crazy and raise hell to see profits.
37) He said the significance of March 27th date was it was his birthday. lol

38) Attack on Iran is unlikely. In the past it was possible but it doesnt look attractive today. Russian stealth Submarines may be game changer.

39) If Gold revaluation were to occur within a year it would be roughly $4,499. But could go higher after a year.

40) He was asked if he has a leg up in the industry. He said of course. Being in this business for as long as he has means he trades information with heads of industry.

41) He doesnt believe Comex will fail.

42) Question about Bitcoin? Sinclair:” it may not be practical”

 Read More

俄羅斯是塞浦路斯鬧劇的贏家

Sinclair - The Next Danger After Putin Crushes IMF In Cyprus

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/3/20_Sinclair_-_The_Next_Danger_After_Putin_Crushes_IMF_In_Cyprus.html


塞浦路斯國會已經以絕大比數，否決向銀行存款徵稅的方案。但是，如果得不到外資來挽救，該國的銀行必定要倒閉。事情的演變，為歐盟和國際貨幣基金組織 IMF 帶來很大的煩惱。

歐盟和 IMF 正處於兩難的局面。如果無條件向塞國銀行注資，歐盟的國民行定強烈反對。但是，要塞國政府向銀行存款徵稅的方案又被國會否決。可是，到了如今，全球的注意力已放在這事件上，歐盟和 IMF 又不能讓塞國的銀行高調的倒閉。

Jim Sinclair 認為，今次的塞浦路斯風波的贏家竟然是俄羅斯。顯然今次塞國國會的否決，很大因素是要避免觸怒俄國。塞國政府已第一時間排高層官員懇求俄羅斯延長一筆貸款的還款期限。

如果歐盟和 IMF 不願意無條件挽救塞國銀行，塞國必定被迫向俄國求助，而俄國肯定非常樂意插手，因為這是俄國首次以高姿態駕入歐元經濟體系的機會，亦可以當眾羞辱歐盟和 IMF，一舉兩得。

IMF 現時處於極危險的地帶，稍有估計錯誤就會立刻觸動全球銀行銀提。Jim Sinclair 很有信心，黃金開始擺脫美國聯儲局的操控。我們處於一個關鍵的時刻。
__________________________________

（＊）Jim Sinclair 的父親 Bert Seligman 是股壇的傳奇人物。Bert Seligman 早在1920 年代已活躍股壇。1950 年代，他擁有的股票行的股票交易，佔了整個紐約股市的總交易額之十分一。
Jim Sinclair 從小就跟隨他父親學習股票買賣。到了1958 年，Sinclair 就自己進身股壇。

他不愧是有其父必有其子。Sinclair 也成為很出色的股票分析家。他有 “黃金先生” 之稱，因為在1970年代當時，他在黃金市場有最大的交易。他更加在事前預告黃金牛市何時見頂。事後證實他的預測奇異地準確，連日子也測中。

1980 年黃金白銀大瀉，華爾街很多大行都走避不及而陷入週轉困難，向當時的財長沃爾克（Paul Volcker）求救。最終沃爾克答應了，但條件是要由Sinclair 率領救市團隊才可以，由Sinclair 安排把亨特兄弟的巨大黃金白銀和黃銅投資進行清盤。

塞國政府，歐盟，IMF犯了大忌

Sinclair - All Hell Is Breaking Loose After Cyprus Catastrophe

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/3/18_Sinclair_-_All_Hell_Is_Breaking_Loose_After_Cyprus_Catastrophe.html

Jim Sinclair 認為今次在塞浦路斯發生的事件，是塞國政府，歐盟，和國際貨幣基金組織，三方面嚴重估計錯誤了後果。這次強搶銀行存戶的存款，其實直接受損的是俄羅斯大集團的錢，亦是前蘇聯秘密警察 KGB 的錢。塞國政府和西方金融機構今次實際上是沒收俄國大集團的錢。

Jim Sinclair 認為此舉非常之不明智。大家都知道這些集團的背後就是俄國政府以及普京總統本人。任何跟俄國做生意的人都知道全部的錢銀交易都必定是透過這些塞浦路斯銀行戶口的。

今次觸犯了這些集團的利益一定會帶來嚴重後果。Jim Sinclair 認為塞國政府官員開始懂得驚了。他們的生命也難保，因為從來沒有人可以盜取這些前 KGB 集團的錢，而不會惹來報復的。

Jim Sinclair 認為塞國政府，歐盟，和國際貨幣基金組織犯了大錯，招來嚴重後果。我們在不久的將來就可以在黃金市場看到回響的。黃金市場正處於巨變的前夕。以紙金能夠控制金價的日子無多了。金市快將由紙金主導變為由實金主導。

(*) Jim Sinclair 是非常資深和有權威的老牌黃金分析家。他在70年代曾擔任亨特兄弟 Hunt Brothers 的顧問。當時亨特兄弟企圖壟斷白銀市場，是他在背後協助策劃的。

Jim Sinclair’s, 3-Nov-2012

Jim,

I'm sure your mailbox is inundated with letters, so I'd like to help. Feel free to post this if you think it will relieve some of the pressure. Thank you for all you have done for gold.

Here is an overview of market action for gold longs from a HFT perspective. If you plan to trade on my information, then the trade is: Buy physical gold. Any HFT worth their salt (or silicon) already knows what I have written here.

TAKE HEART GOLD LONGS, THE PAIN IS ALMOST OVER. The next leg of our journey takes us to $1800 and over, probably in time for Christmas. The best advice I ever received in gold is: "Your emotions are always wrong." This was from a highly skilled trader named Jim Sinclair. Thank you, Jim.

Here is what is going on:

Market releases are important, and NFP is the most important.

NFP (non-farm payrolls) is the most volatile of all data releases. Every HFT (algo and human) trade it. The high risk trade is to short bonds or long S&P prior to the release. The HFT method is to close your position pre-release and have your finger on the mouse ready to pounce. Failing that, the human method is to fade the spike and profit from mean reversion.

On a ladder, you can see 1 min before a data release that orders are pulled and volume is barren. As the data is released, algos get it first. They slam orders into the market. A second (or less) later, humans add to these orders at market and the algos sweep their profits. This drives the price as stops are crossed and slow traders enter.

For this NFP release, everyone knew the data release would be the same as October. It's an election year. The number may be revised in a week or 2, but that won't matter after the election.

Knowing in markets is a powerful thing. Most trading is guessing and hoping, so knowing is a comfort rarely experienced.

When the release happens, the gold market got slammed. The previous day, traders were pulling their longs from $1725, causing the price to drop. For the release, the shorts know that longs have stops under $1700. This is a human "line in the sand". So the goal is to cross $1700. You can see the stops trigger to $1696. From there, longs feel the pain and close positions, allowing the shorts to hit the price again into the next level $1678. These were the levels in my last email, and nothing has changed. The short goal is $1650, but won't get a chance to push $1650 and here is why:

China demand. The Chinese government has encouraged it citizens to buy gold. This is a saving culture with little faith in governments and currency. These avid savers have already bought large amounts of gold and will be buying more under the assumption that "If the price was good at $1750, then it's great at $1700!" This is how value buying works.

Come Monday, Asian value buyers will be into the market. Some may want to try to get $1650 prices or wait until Tuesday to get a better price, but will quickly snap up gold as they see the price start to go up. These physical buyers will be buying on as the price starts to press $1700 for fear of missing this BREIF pullback in price.

CIGAs should also be value buying at these levels.

On Monday, shorts will try to breach $1678. They may get it to fall (briefly) but that level won't hold. Spec shorts will be closing positions and adding longs at these prices. Spec shorts don't want to get caught behind the wave of big money value buyers. High volume VALUE traders will be back into the market on Wednesday, after the election smoke clears. These traders will be snapping up every pullback of gold, knowing they can reap a big profit before the end of the year. This starts the gold run to $1800 (short term, ie Christmas) and $2000 close behind. $2000 is a low estimate with a looming fiscal cliff and rabid money printing.

It is an election week. All eyes (news coverage) will be on the election, with real news hidden in the folds. No matter who wins, nothing will change.

If Obama wins, Bernanke will continue QE as normal, secure in his job. If Romney wins, Bernanke will increase QE in an attempt to keep his job. Either way, the printing press rolls on devaluing in the dollar and increasing the book price of hard assets. Markets know this. Knowing something in a market is a strong motivator.

There is NO scenario short of an election coup d'état of congress that can stop the presses.

If you are NOT buying gold at these prices, you have NO insurance for what is to come.

If you are long physical gold, turn off the tape and come back to it on Thursday when this paper BS is over.

Jim, thank you for all of your wisdom and advice.

Cheers,
CIGA Henry (HFT)

Jim Rickards - Currency Wars Simulation

Jim Sinclair: Cartel Shorts Are a Managed Spread Position, Banks Flipping to Naked Long Will Propel Gold to $12,400!

The legendary Jim Sinclair has sent an email alert to subscribers in response to a reader inquiring why the bullion banks are short gold and silver.

Sinclair responded with his most in-depth explanation to date stating that the majority of what appears to be short positions is in fact a massive hedge spread which has been systematically used to manage the ascent of gold up from $250 and the USDX down from 1.25 over the past 10 years.
 
Sinclair states that when the bullion banks sense that gold is ready to explode upwards in price in the final bull move of this bull run, they will flip their spread hedge naked long, reaping the largest gains of anyone in the precious metals sector, and propelling gold to $12,400.

MUST READ!!!

From Jim Sinclair:

What is the “Strong Dollar Policy” of the US Treasury? The answer is it is a policy of support of the dollar at key technical points so that the dollar will decline in an orderly fashion. This has been in place since the dollar was trading in the mid one hundred and twenty-five area on the USDX. In comparison the “Weak Gold Policy” has been in place since $248 which means gold’s appreciation will not be an insult to the dollar by spiking to $3500 and beyond, but rather rise in an orderly fashion. How could you not have noticed this in both the dollar and gold? This opens the bonanza to the metals dealer to run what looks like a huge short but rather to operate their business where I was pleased to make one half a dollar unwinding the spread (a long position versus a short position offsetting between my buying product from the producer versus Comex short).

Today the metals dealer want to make fifty dollars, not 50 cents on that spread.

I owned a metals dealer here and in London. I made a cash market for gold. I know about what I speak. There might be outside of the gold banks less than five people who understand the big short that is always being screamed about by the so called gold experts, and COT is a crock. You are looking at least seventy-five percent at a managed spread position. What happened at $1800 then at $1775 and again at $1750 was the long side of the spread was dropped, leaving the short side exploded and the gold banks pounding the market to make a 50% profit by putting back on the long side of the spreads, locking the huge physical long versus the Comex short into a no risk position that reads on COT like the greatest short in human history. The same is true of silver. In this financially debased world, with the rules of a metal dealer’s company and a little help for standard financial fraud and you will never find this in the COT numbers.

I am telling you the truth. I am telling you how a metals dealer works. I know because I was successful in the entire 1970s gold bull market play against this game.

Here comes the “Golden Truth.” When the gold banks perceive that the gold market is about to go ballistic, just like any bull market does, they need only reverse the strategy in place from $248 called “The Weak Gold Policy” in how they handle the 75% risk-less spread. Now when gold falls you takes off the short aside of the spread with gusto and let the long run. The biggest money I ever made was when my very interesting partner and I went into the Sinclair Global Arbitrage Company and asked them how many ounces of gold and silver they had in a spread position. When they told us the huge number over 15,000 contracts spread we told them follow our instruction. Take every short off the spread making us naked long. This was when the gold price broke $400 the second time over, running like a bunny to $887.75.

You must note how central banks are either buying or protecting their gold reserve positions now. This is total about face two years ago. There is another change coming which is a replacement monetary system and the need for some asset on central bank’s balance sheets to have positive value, especially in the USA. Soon all that is required is a change in spread management by the gold banks and you will have whatever price the gold banks want from $3,500 to $12,400.

All the COT numbers are nonsense and a means of operating the markets. COT experts give buy and sell signals which help the physical metals dealers profit on their spread trading. The COT experts help this spread trading looking for immense profit to profit immensely. Nonsense makes markets so the COT analyst looks like a genius while really interpreting nonsense when he/she is being duped into a tool to help the metals dealers spread position profit.

I have told you 1000 times that the greatest profit over the shortest period of time will be made by the gold bank physical dealers.

Because I know.
Because it requires only a shift in spread trading tactic handling of the spreads. 
Because it is simple.
Because in truth the gold banks are simple.
Because I did not get named “Mr. Gold” in the seventies because I wrote on gold.
Because in the 70s I ran the gold market and the gold price by attacking the dealer’s spread position which no one has done so far in this market.
Because attacking a spread position is simple. You simple run the opposite spread tactics with major balls and major PR.
Because I like keeping it simple.
Because the proof on this is that the gold banks got pissed. Both I and my partner were brought before the board of directors of the exchange under the accusation that we two running huge spreads between us, thereby manipulating the world’s gold markets.

Wake up experts, you have been had and your comments to the community are helping make sure they are had. You are tools of the gold banks and do not even know it. Your sage comments when I hear them from readers makes me sick because it is ignorant of the business.

Now I know this is going to cost me big, but you must understand what I am teaching you above. If you do not understand ask me the questions but no tomes please, all in at least 24 font, no other “expert” articles please. Just write me on what you are stuck on and I will try to clear your understanding of what you own or trade.

Please do not argue with me because you will only be demonstrating your ignorance, not your knowledge.

If you are convinced the decorated professor is a turkey, guess who really is the turkey.

Respectfully,
Jim

The Cartel And Hedgies Are Short Paper, But Long Physical Gold

The following bulletin from Jim Sinclair explains where gold is headed and who will benefit.  In typical fashion, Sinclair’s information is superb but his writing style isn’t exactly clear.  In fact, after reading it, my wife asked me what he meant by “7 touches”?  (See following bulletin)  Half a dozen years ago it was fashionable within the gold community to point out that a few bullion banks (Goldman Sachs, JP Morgan and a few friends) were always “short” gold. Sinclair stated then, that the bankers weren’t stupid and as the bull market advanced, the same bankers that were “short” would be the ones who were “long” and they would make a fortune on their gold holdings.  That’s right, they would be “long,” not “short!”  At the time, not many people believed him – but here he is, in the bulletin below, once again pointing out who is accumulating gold.  Low and behold, it’s the very same bankers that are being blamed for being “short.”  Of course, they are “short,” short paper gold and “long” the physicals.  That is exactly what Sinclair is alluding to.  But it’s not just the bankers that are accumulating physical gold; it’s also “big money.”  They are starting to protect their wealth against the coordinated central bank (QE) money debasement from the Fed, the ECB and Japan.

READ THE FULL NEWSLETTER

Jim Sinclair: US, EU, Japan, & China Likely Discussing Coordinated Central Bank QE!

The legendary Jim Sinclair sent an email alert to subscribers tonight, stating he believes that the US, EU, Japan, and China are discussing coordinated Central Bank quantitative easing announcements.
Sinclair states that the economic problems are currently so severe and insoluble that only coordinated global easing will successfully kick the proverbial economic can down the road one final time.
Sinclair also repeats his call that gold is going to and through $3,500 an ounce, here and NOW!
From Jim Sinclair:
Monty Guild, a friend of mine for more than forty years, is the most honest and capable man, in my opinion, in money management.

I respect Monty’s feelings on many matters, certainly the macro picture. Monty, like I, believe it is possible that coordinated central bank actions in the USA, EU, Japan and China are being discussed. The economic problems are so severe, so international, so global, so entwined, so insoluble and still caused primarily by the greed of 1990 to present finance in the form of OTC derivatives that only coordinated global action can kick this can one more time.

Gold is truly going to and through $3500. The gold business is the best business to be in.

Respectfully,
Jim

Jim Sinclair 24-Aug

Stay the course! The current pressure on gold shares by hedgies is because Romney says, if elected, he will fire Bernanke and will not want to see QE 3.

Now what impact does that have to have on Bernanke? I would say he now really wants to see Obama elected. That speaks very well for huge stimulus fast and an end of the standoff between the Federal Reserve and the US legislative.

The hedgies hate gold so they interpret Romney's statement bearishly. In truth it is the opposite, bullish for gold.

Bernanke has been considered good for the dollar up to now as much as that is mistaken.

Regards,
Jim

Jim Sinclair: The War Between Manipulation and Buying

caseyresearch.com / By Ed Steer / July 7, 2012

YESTERDAY IN GOLD AND SILVER

The gold price traded quietly during the Far East trading day on Friday, but developed a slight negative bias as the afternoon wore on in Hong Kong trading…and once it dropped below the $1,600 spot price mark at 9:50 a.m. in London, the gold price plunged eight or nine dollar in short order. The London low was noon local time…and then it rallied a hair into the New York open.

Then at 8:30 a.m., gold jumped back over the $1,600 spot mark, where it ran into a wall of not-for-profit sellers immediately…and within twenty-five minutes was down over twenty-six bucks from its high just minutes prior. The high…which came around 8:40 a.m. Eastern time…was $1,611.20 spot.

After the hammer fell, the gold price more or less traded sideways until about 12:15 p.m. in New York…then the got sold down some more from there, with the low of the day [$1,575.40 spot] coming shortly after 1:00 p.m. The gold price recovered about eight bucks from that low…and closed at $1,582.40 spot…down $21.50 on the day. Net volume was around 150,000 contracts.

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