Dear Jim,

From THE WE DO THINGS AND DON’T WANT YOU TO REALIZE IT FILE;

Today’s Financial Times had an article entitled “Fund Heads Voice Short Selling Fears.”

The first paragraph said “Three associations representing fund managers in Australia, The UK and the US have joined forces to warn that their industry would be damaged if market regulators publish detailed information on short selling trading positions.”

What else is there to say? Evidently, the old song refrain… "let the sun shine… let the sun shine in” is not a favorite of the fund industry.

Respectfully yours,
Monty Guild
www.GuildInvestment.com

Jim,

The unwise sold the Euro and bought US dollars due to this. Although the Euro is ugly it is a beauty compared to the US dollar.

Respectfully yours,
Monty Guild
www.GuildInvestment.com

RPT-ECB FOCUS-ECB faces lengthy wait for rate cuts to hit home
Wednesday, January 07, 2009 10:30:03 PM (GMT-08:00)
Provided by: Reuters News
By Krista Hughes

FRANKFURT, Jan 7 (Reuters) - If the European Central Bank was really hoping to start the new year with hard evidence that record interest rate cuts are helping the economy, it must be feeling disappointed.

ECB President Jean-Claude Trichet [ID:nLU207563] has batted back questions about the chances of another move this month by saying the bank was focussed on the impact of its 1.75 percentage points in cuts since October.

Yet indicators show little sign that euro-zone households and businesses are feeling the full benefit.

Average corporate borrowing costs have actually increased in the last few months, judging by corporate bond yields, and persistent financial market tensions are also dulling the pass-through of lower official rates to the real economy. (See [ID:nL798350] for factbox)

Meanwhile, with the euro zone economic outlook worsening by the week and inflation already well below the ECB’s 2-percent ceiling, having fallen to 1.6 percent in December, the ECB may have little time to wait and see.

More…

Jim Sinclair’s Commentary

Deliveries out of Comex warehouse - the plot thickens.

It has been reported to me that the Comex is trying to argue people out of taking delivery of gold from the warehouse.

Tomorrow I am going to check my records to see who is the auditor for the warehouse.

You know on 9/11 all that gold was smashed in the cellar vaults when the Twin Towers came down.

I assume there was no damage to even one bar, nor was even one bar pocketed in the process of backhoe removal of debris.

Wasn’t all the floors of the collapsed Twin Towers about 6 inches thick when it was all over?

Maybe the Comex warehouse holds one very large and ugly bar of gold accounting for 75% of the ounces.

"In today’s world anything is possible." Quote from Bernie Madoff.

I love the following writer:

“We have made at least 15 calls and they are now asking WHY I want delivery.
They say it will cost a lot of money to sell it back to them. Ha!
Because I am from MTS they think I fell off a turnip truck.
–CIGA Hslm P."

Jim,

I saw this article today and thought it was a nice confirmation of information Dan and Monty have been giving us for several weeks, not to mention Points 10 and 11 of your 9/1/06 Formula. Once again I found striking parallels in the language:

Jim’s Formula 9/1/06 Points 10 and 11:

10.  If the investment by non US entities fails to meet the exiting dollars by all means, the US must turn within to finance the shortfall.

11. Assuming the US turns inside to finance all maturities, interest rates will rise with the long term rates moving fastest regardless of prevailing business conditions.

Regards,
CIGA Richard

NY Times article 1/7/2009:

China’s voracious demand for American bonds has helped keep interest rates low for borrowers ranging from the federal government to home buyers. Reduced Chinese enthusiasm for buying American bonds will reduce this dampening effect…

Click here to read the full article…

Dear Jim,

I bought this on EBay today. Nothing like repeating history, eh?

Regards,
CIGA JB Slear

Fort Wealth Trading Co. LLC
www.FortWealth.com
866-443-0868 ext 104

Dear JB,

The question is what did you pay?

Regards,
Jim

Hey Jim,

The statistical extremes reported by the non-reportable and commercial traders suggest that the down D-wave has terminated. Yet, fear keeps most players on the sidelines until a large chunk of the A-wave advance has already taken place. I expect one more dip over the summer, then a big move above $1,000 starting Fall 2009.

I’ll keep you posted.
CIGA Eric

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