Jim Sinclair’s Commentary

The powerful know so little about so much, and nothing about OTC derivatives.

If you cannot accurately value them on a daily basis you cannot clear OTC derivatives. All the prior issued OTC derivatives are impossible to list and trade on any exchange.

The following is an excerpt from the Wall Street Journal:

"Senate Agriculture Committee Chairman Tom Harkin, D-Iowa, was expected to introduce a bill Thursday that would put trading of all over-the-counter derivatives, including credit default swaps, onto regulated futures exchanges. "With the value of swaps at a high of some $531 trillion for the middle of this year — 8 1/2 times the world GDP of $62 trillion — it is long past time for accountability in the markets,"

Jim Sinclair’s Commentary

Add to the trillions in donations to the wealthy with what is below and Quantitative Easing assures us that Weimar will not and can not be avoided.

You have only two alternatives. Protect yourself as I have advised or financially perish. What is your choice?

Tracking the $700 Billion Bailout
Friday, November 21, 2008

Dozens of banks and a handful of insurers have applied for funds from the Treasury Department as part of the $700 billion Troubled Asset Relief Program. The Treasury has transferred capital to 30 of these companies and to A.I.G. More are expected to announce their participation in the coming weeks.

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Jim Sinclair’s Commentary

Are deliveries of conversions from certificate to bullion suspended? I do not know.

Mint suspends orders amid rush to buy bullion
The Australian

FEARS of the unknown long-term effects from the global financial crisis have sparked a new gold rush.

With retail and wholesale clients around the world stocking up on the precious metal, the Perth Mint has been forced to suspend orders.

As the World Gold Council reported that the dollar demand for gold reached a quarterly record of $US32 billion ($50.73 billion) in the third quarter, industry insiders said the race to secure physical gold had reached an intensity that had never been witnessed before.

Perth Mint sales and marketing director Ron Currie said the unprecedented demand had forced the Mint to cease orders until January, with staff working seven days a week, 24-hour days, over three shifts to meet orders.

He said Europe was leading the demand, with Russia, Ukraine, Middle East and US all buying — making up 80 per cent of its sales. One European client purchased 30,000 ounces for $33 million.

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Jim Sinclair’s Commentary

What is the problem? It is done every day in the gold market by the paper players here in the US. It was done today on the Dow Jones. The dollar is supported by it only. So why is Poland bitching when no one in the USA seems to care?

Polish watchdog asks prosecutor to probe late share deal

WARSAW, Nov 21 (Reuters) – Poland’s financial and securities regulator KNF said on Friday it had filed a complaint with local prosecutors accusing a "person acting in the name of JP Morgan Securities" of possible market manipulation.  A spokesman in London for JP Morgan Securities, a unit of JPMorgan Chase, declined to comment.

The complaint is connected with transactions that took place on Nov. 12 when late transactions in what newspapers dubbed a "miracle" fixing session on the Warsaw bourse helped the main WIG20 index .WIG20 recover a good chunk of its losses.  The index had been on track that day towards its worst percentage drop this year, falling as much as 10 percent before ending the regular session 9.1 percent lower.  The regulator said a 130 million zloty ($42.8 million) order buying all members of the WIG20 pushed the index to close down just 4.9 percent. Warsaw stock exchange’s continuous session is followed by a fixing auction at which closing prices for most shares are set.

"In the opinion of KNF, the actions taken by a person acting in the name of JP Morgan Securities may be considered a manipulation of a financial instrument," the regulator said in a statement.  "That is why the matter was forwarded to the district prosecutor’s office in Warsaw."  The Polish regulator said the transaction was associated with an open position on the futures market. (Reporting by Chris Borowski; Editing by David Holmes)

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