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In The News Today

Posted October 28th, 2013 at 7:42 PM (CST) by Jim Sinclair

Jim Sinclair’s Commentary

Congress to eliminate the debt by not counting it anymore….

October 28, 2013

Sovereign Valley Farm, Chile

You know the old rule of thumb about laws–

The more high-sounding the legislation, the more destructive its consequences.

Case in point, HR 3293– the recently introduced Debt Limit Reform Act. Sounds great, right? After all, reforming the debt seems like a terrific idea.

Except that’s not what the bill really does. They’re not reforming anything. HR 3293′s real purpose is to authorize the government to simply stop counting a massive portion of the US national debt.

You see, one of the biggest chunks of the debt is money owed to ‘intragovernmental agencies’.

For example, Medicare and Social Security hold their massive trust funds in US Treasuries. This is the money that’s owed to retirees.

In fact, nearly $5 trillion of the $17 trillion debt (almost 30%) is owed to intragovernmental agencies like Social Security and Medicare.

So now they basically want to stop counting this debt. Poof. Overnight, they’ll make $5 trillion disappear from the debt.

On paper, this looks great. But in reality, they’re setting the stage to default on Social Security beneficiaries without causing a single ripple in the financial system.

Remember, when governments get this deep in debt, someone is going to get screwed.


PART ONE: The Dollar Reserve Equilibrium Is Breaking Down

By Lars Schall

On behalf of Matterhorn Asset Management Zurich, London-based investment manager John Butler met with German financial journalist Lars Schall in Munich to discuss some of the major aspects of international affairs as they relate to the sphere of finance. In Part 1 (18 minutes) of this tremendous and informative video interview they focus in particular on the U.S. dollar and the challenges that may arise if China would back the yuan with gold. Butler: if gold would be remonetized in a historical proper fashion, its price would be a lot higher.

THE MATTERHORN INTERVIEW: John Butler Part 1 – October 2013

There are people who are close to me who refuse to even listen to what I have to say about our government, the economy and the state of the nation.  They think I am too negative and too angry.  They think the information they get from the main stream media is more credible than what I have to offer.

Oh is that so?  Well, I have learned that it is difficult, if not impossible to change the way people think and that’s that!  How any rational person can listen to the arguments and data we present and think we are all wet is beyond me!  I don’t get it, but I do get it.  It’s not me, it’s not us, and it’s them.  They are all wet, they don’t get it and worst of all, they refuse to even consider the facts.

Andy Hoffman, Bill Holter and I give you more honest insight, and clear thinking than a pile foot high of the best newspapers you can find.  We aren’t the only ones passing on the truth to you.  I spend all day reading people of a like mind and I consider all of them to be smart, forward thinking and realistic.

Why should I pretend things are better than they are?  Just to be more popular or more “politically correct?”  That’s just not me and since I am the owner, Miles Franklin will present our “filtered” version of what is happening in the world that affects your finance.

We are not perfect, but if we have an error, it’s mostly in the “timing” of events.  It seems that things take LONGER to develop than we thought and also they often go to further extremes, but the trends are easy enough to see in advance.  Save the timing for the traders – and if you do trade, you best be VERY skilled and have very deep pockets.

The manipulation of the precious metals market pretty much guarantees that you can not win in this arena.  There is no hard-set data, chart or political trend that controls the minute to minute and day to day moves of gold and silver.  Who wins?  You do, if you buy it, sit on it and wait a while because when you finally do cash in your chips, you will have won big time.

In closing, I know that hope and optimism are good things but still, they should be realistically based.  If you need to rely on miracles or exceptionally good luck, you will usually come out on the losing end.  Just be a realist, and then, even if you are angered by what you see, you can still find plenty of things to enjoy and make you smile.  I only get angry and get that look on my face when I am discussing the type of things I write about.  But that doesn’t fill up my day and it is not the most important thing in my life.  But when I think about the lies, deception, deceit and foolishness coming from Washington and Wall Street that make my life more difficult and will make the life of my children and especially my grandchildren harder, pardon me, I get mad.  And to Heck with the media who refuse to honestly inform the people.  They all sell out for a buck!

Bix Weir is right.  In his open letter to the CFTC below he makes the point that even “if” Jeffrey Christian is correct and the waterfall drop in silver is not caused by a single source, like JPMorgan, but by a group of funds all utilizing the same algos that instruct the computers to sell at the same time.  It’s other side of the same coin.  The Comex is supposed to provide price “discovery,” it is not supposed to be the mechanism for price “setting.”  That is against the law.  From one source or many simultaneously, a rose is a rose is a rose.  It’s an interesting argument and one I see no logical way around it!

Silver Expert: Jeffrey Christian Proves Illegal COMEX Price Setting

October 29, 2013
Commodities Futures Trading Commission

3 Lafayette Center
1155 21st St. NW Washington, DC 50581
Re: Illegal COMEX Price Setting
ATTN: CFTC Commissioners:

In a stunning admission last week at The Silver Summit in Spokane, CPM Group’s President, Jeffrey Christian, a long time opponent of silver market rigging claims, admitted that the price of silver was being illegally set on the COMEX trading floor. This admission came during his attempt to prove that there was no silver market manipulation taking place…

Read More…

The following from LeMetropole Café shows the algo action shown in the following silver chart.

24 Hour Spot Silver 5-1-2011


Yesterday I mentioned the absence of flash crashes and, voila! it reappears. Out of the blue, and in the midst of one of the more droll evening access trade sessions in recent memory we get the classic algo blast. To give you an idea of how dead trading volume was prior to the attack:

3:32 AM: 4 Dec. contracts
3:33 AM: 13 Dec. contracts
3:34 AM: 24 Dec. contracts
3:35 AM: 18 Dec. contracts

And then witness the algo magic……
3:43 AM: 2,164 Dec. contracts
3:44 AM: 697 Dec. contracts
3:45 AM: 560 Dec. contracts
3:46 AM: 1,810 Dec. contracts

In just 4 minutes 5,231 contracts were sold, nearly as much volume as the entire evening’s access trade up to then. This even vastly exceeded Comex trading volume for the first hour of pit trade. Those 4 minutes lopped $12 off of the price. Once again yesterday’s feeble silver trading was the tipoff. As we know one of the biggest cartel rules is no excitement during Fed speak, and last night was the precursor.

Le Metropole Café, October 26, 2013