Dear Jim,

This is a first. Sure, it is only between the mainland and HK, however it sets the stage.

CIGA Ro

Bank of China to transact first cross-border yuan settlement Monday
www.chinaview.cn
2009-07-05 23:25:35

BEIJING, July 5 (Xinhua) — The Bank of China (BOC), China’s largest foreign exchange bank, will transact the first cross-border yuan trade settlement deal Monday, a source with the bank said Sunday night.

The BOC Shanghai branch would receive the first cross-border yuan trade settlement deal from the BOC (Hong Kong) Monday, the unidentified source said.

The payee would be Shanghai Electric International Economic and Trading Co., Ltd. under Shanghai Electric Group Co., Ltd. and the remitter would be the company’s business partner in Hong Kong.

More…

Dear CIGA Ro,

Very few have seen the true implications of what the media calls a modest development.

This is what is known as a "landmark" event.

Congrats on your most pertinent and correct comment.

Jim

Dear CIGAs,

Here is a message sent to a COT friend:

Never be a robot to any system. The dollar rules gold today. For gold to be bearish the dollar must be bullish. You can have a bearish dollar and sluggish gold. You cannot have a bearish dollar and bearish gold. What makes it happen in any present time will make it happen in that present time. Always remain malleable and never be a one system TA Stiff!

Jim

Dear Jim,

On June 29, 2009, the RCM issued a press release about their missing gold. The report notes that after a three-month audit by Deloitte & Touche there are 17,514 OZs missing that cannot be attributed to any accounting error.

RCM management stopped short of admitting the gold is gone. According to the press release, RCM’s President emphasized, "the Mint will aggressively continue its efforts both internally and with outside experts to determine the sources of the unreconciled difference."

However, the Mint also noted it had "notified its insurance carriers that it intends to file a claim under its ‘All Risks’ insurance policy which, if successful, will largely offset the amount of any unreconciled difference."

In this context, "All Risks" means employee dishonesty. Insurance companies don’t pay for sloppy accounting, nor do they like to pay out $16 million plus. At least we know someone will now do a thorough investigation.

The full Press Release can be found here…

Best wishes,
CIGA Richard B.

CIGA Richard B,

If a Government Mint can have significant amounts of gold go missing what makes you think that "Honest Abe’s Internet Mint" even exists?

The only totally safe storage is in the vault of you.

I will not even opine on pieces of paper representing gold in storage.

It is amazing how otherwise smart people select the lazy way to protect their life’s work from being decimated by our esteemed financial leadership in and out of government.

Jim

Jim,

AH1N1 is being downplayed by North American media, but nowhere else.

China is a sea of surgical masks. That is scary as you can’t tell if the fellow who just passed within 6 inches of you has it or is trying to prevent getting it.

I got shot in the forehead with a laser thermometer before I was allowed out of my seat on Air China. I got it again at customs.

I think on the way home I will bring a tin foil hat and put it on when I see the laser army heading my way.

Maybe that is not as humorous as I feel it is because these health soldiers look real mean.

Great Britain this past weekend issued a national medical alert estimating that by August they anticipate 100,000 new confirmed AH1N1 flue cases per day.

My Dear Friends,

Please take precautions. This is no joke.

Sincerely,
Jim