Jim Sinclair’s Commentary

Thank God for those that stand on the wall while we sleep and who risk their lives in order to protect us. Their only reward is a white star on a black wall with a year as the header but no name. Thank you and rest well.

Two alleged U.S. spies killed in Pakistan`s tribal region
Posted: 2008/11/10

Suspected militants have killed men accused of spying for the United States in Pakistan’s tribal region of North Waziristan, local tribesmen said Saturday.

Two bullet-ridden bodies of Afghan nationals were found at Dargah Mandai area near the border area in North Waziristan on Saturday, they said.

A note in the native Pashto language found near the body of the slain men, said that they were spying for the United States and Afghan government.

The note warned that anyone spying for the U.S. or Afghanistan would face the same situation.

Militants are blamed for attacking people suspected of spying for the U.S. or Pakistani authorities in the region, which borders Afghanistan, and where al Qaeda- and Taliban-linked militants operate.

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Jim Sinclair’s Commentary

The complex OTC derivative situation is now becoming something akin to the Japanese sci-fi of the 1970s titled "The Green Blob that Ate the Earth." No wonder her Majesty is inquiring with legal authority. As Queen, she still might have the power to order, "off with their heads!" Since her present wealth is primarily in real estate and that is what she got hit for, is it possible for a Queen to be homeless?

Sweden seizes Carnegie in first bank bail-out
Sweden’s government is to seize control of Carnegie after the 200-year-old investment bank took "exceptional risks" with client money and breached trading rules.
By Ambrose Evans-Pritchard
Last Updated: 7:15PM GMT 10 Nov 2008

Mats Odell, the financial markets minister, said the state had opted to save Carnegie by providing a 5bn Kronor (£450m) state loan rather than let it go bankrupt in order prevent a fire-sale of assets and to shore up the financial system at a delicate moment.

"Carnegie is important: there could be significant problems for households and companies if we jeopardise the stability of the financial system," he said.

It is the first Swedish bank to require a bail-out since the credit crisis began, but there are mounting concerns over the health of Swedbank, SEB, and other lenders with heavy exposure to the Baltic states. Swedish banks have lent the equivalent of 25pc of the country’s GDP to Eastern Europe.

The debt office said it had revoked Carnegie’s trading licence and ousted the entire board,

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Jim Sinclair’s Commentary

Here is the news that counts. Here is where your focus should be.

The Fed is dragging its feet hard to keep the type and kind of SIVs they have taken as collateral from bankrupt institutions secret. The reason is simple. If they are total junk (and they probably are) the balance sheet of the Fed would be creamed. This would make Treasury instruments anything but totally creditworthy. It would make it much harder to borrow money, would break the 30 year bond and cream the dollar. It is coming one way or another.

U.S. to Borrow Record This Quarter to Finance Deficit
November 03, 2008

Nov. 3 (Bloomberg) — The U.S. Treasury more than tripled its planned debt sales for this quarter to help finance a 2009 budget deficit that bond dealers advising the department estimate may swell to almost $1 trillion.

Borrowing needs are expected to rise to $550 billion in the three months to Dec. 31, compared with the $142 billion predicted in July, the Treasury said in a statement in Washington. That follows a $530 billion record in the July-September quarter.

The worsening credit crisis and sluggish economy are straining the country’s finances and will leave the winner of tomorrow’s U.S. presidential election facing the worst budget shortfall on record next year. The Treasury is scheduled to announce in two days plans to expand debt sales to fund the gap.

“The U.S. Treasury faces an unprecedented financing need,” said Goldman Sachs analyst Ed McKelvey, echoing a similar comment last week by Anthony Ryan, the Treasury’s acting undersecretary for domestic finance.

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Jim Sinclair’s Commentary

Judging from the G-20 meeting, I would assume the new Bretton Woods conference will discuss fiscal stimulation and how to pump more funds into the system.

TABLE-Key facts about G20 members
11.10.08, 10:31 AM ET

Argentina – Nov 10 (Reuters) – Following are some key details about the G20 countries plus Spain, a membership aspirant:

COUNTRY POPULATION GDP FOREX RESERVES

(mln, 2007) ($bln, 2007) ($ bln, latest)
———————————————————-

* Argentina: 39.5 262.33 47.1
* Australia: 21.01 821.72 27.6
* Brazil: 191.6 1,314.17 205.1
* Canada: 32.98 1,326.38 41.1
* China: 1,319.98 3,280.05 1,808.8
* France: 61.71 2,562.29 144.8
* Germany: 82.27 3,297.23 153.0
* India: 1,123.32 1,170.97 295.3
* Indonesia: 225.63 432.82 54.5
* Italy: 59.37 2,107.48 104.5
* Japan: 127.77 4,376.70 996.7
* Mexico: 105.28 893.36 77.1
* Russia: 141.64 1,291.01 582.2
* Saudi Arabia 24.20 381.68 34.1
* South Africa 47.59 277.58 243.3
* South Korea 48.53 969.79 240.3
* Spain 44.88 1,429.23 13.8
* Turkey 73.89 657.09 79.1
* United Kingdom 61.03 2,727.81 72.1
* United States 301.62 13,811.20 72.5

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