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Dear CIGAs,
For more reading on the Peanut Brittle Recovery, the following article in the Economist underscores the risk inherent in Pretend, Extend and Pray.
Click here to read the article…
Jim Sinclair’s Commentary
Here it is from the horse’s mouth. If you are bull on the US dollar you have got to love US Treasury bills, notes and bonds.
Harder to buy US Treasuries
Created: 2009-12-18 0:13:35
Author:Zhou Xin and Jason Subler
IT is getting harder for governments to buy United States Treasuries because the US’s shrinking current-account gap is reducing supply of dollars overseas, a Chinese central bank official said yesterday.
The comments by Zhu Min, deputy governor of the People’s Bank of China, referred to the overall situation globally, not specifically to China, the biggest foreign holder of US government bonds.
Chinese officials generally are very careful about commenting on the dollar and Treasuries, given that so much of its US$2.3 trillion reserves are tied to their value, and markets always watch any such comments closely for signs of any shift in how it manages its assets.
China’s State Administration of Foreign Exchange reaffirmed this month that the dollar stands secure as the anchor of the currency reserves it manages, even as the country seeks to diversify its investments.
In a discussion on the global role of the dollar, Zhu told an academic audience that it was inevitable that the dollar would continue to fall in value because Washington continued to issue more Treasuries to finance its deficit spending.
Jim Sinclair’s Commentary
The UN gets it. F-TV still hasn’t a clue.
Now, gold coins from United Nations
December 19, 2009 18:40:00 IST
NEW YORK (Commodity Online): Now, the United Nations is also lured by the glitter of gold. In a bid to raise money for its projects, United Nations has licensed the minting of gold bullion coins bearing its logo to provide a public option world savings currency.
Oro gold coins are hoped to contribute to making the UN better funded by 2015, with revenue rising by ten to 15 per cent.
The coins are set to be produced in Europe and then distributed globally, with any licensee able to produce such bullion under contract.
There is a danger that if the US dollar weakens, there will be a strong move towards the Oro. In turn, this could potentially drive the value of the coin up to a level where international governments will not allow it to be circulated.
UN coins were previously made purely for commemoration in the 1970s, but they hold no monetary value
Jim Sinclair’s Commentary
This weekend in Pakistan.
Who’s in charge of nuclear-armed U.S. ally Pakistan?
Pakistan bombings kill 40 as government fights for survival
BY SAEED SHAH
ISLAMABAD — Pakistan, a country that’s critical to the U.S.-led war on terrorism, Friday appeared to be sliding toward a judicial coup, in which judges are moving to oust top officials in the civilian government, but without putting the military, or anyone else, in charge.
Courts summoned dozens of senior members of the ruling political party and were on the verge of issuing an arrest warrant for Interior Minister Rehman Malik as they followed up a landmark Supreme Court decision this week that nullified a legal amnesty that had shielded politicians from long-standing corruption charges.
The U.S. relies on Pakistan for transit of most supplies NATO forces in Afghanistan and has pressed the government to crack down on al-Qaida and Afghan militants who have sanctuary in the lawless border region, but top U.S. officials are playing down the crisis as an internal matter for Pakistan.
Just who’s running this nuclear-armed country of 165 million – the independent judiciary or another arm of the state – is unclear. The government, led by President Asif Ali Zardari, appeared paralyzed, and a creeping change in command seemed to be under way.
"It’s complete (judicial) control now," said Asma Jahangir, the chair of the Human Rights Commission of Pakistan, an independent watchdog. "The issue is whether the (democratic) system is going to pack up again (and go away)." She asked why the judiciary was "again" letting itself be used by "the establishment?"
Jim Sinclair’s Commentary
According to most recent Russian figures and statements, gold holdings continue to increase.
Russian Central Bank Gold holdings
The Central Bank of the Russian Federation updated their website a couple of days early this month. For November, they reported purchasing another 200,000 ounces of gold for their reserves, which now sits at 19.7 million troy ounces. The Russian Central Bank has also said that it would purchase an addition 32 tonnes [960,000 ounces] in December. This purchase won’t show up on their website until around January 20th.
Jim Sinclair’s Commentary
A message from Europe on possible implications of Cap and Trade.
Fraud in Europe’s Cap and Trade System a ‘Red Flag,’ Critics Say
By Joshua Rhett Miller
The top cops in Europe say carbon-trading is an organized crime scheme that has robbed the continent of $7.4 billion — a massive fraud that lawmakers and energy experts say should send a "red flag" to the U.S., which approved cap-and-trade legislation over the summer amid stiff opposition.
In a statement released last week, the Europol police agency said Europe’s cap-and-trade system has been the victim of organized crime during the past 18 months, resulting in losses of roughly $7.4 billion. The agency, headquartered in the Netherlands, estimated that in some countries up to 90 percent of the entire market volume was caused by fraudulent activities.
"These criminal activities endanger the credibility of the European Union Emission Trading System and lead to the loss of significant tax revenue for governments," Rob Wainwright, Europol’s director, said in a statement.
Launched in 2005, the Emission Trading System seeks to reduce greenhouse gas emissions — which many scientists believe contribute to global warming — by allocating carbon pollution allowances to member states to fulfill its obligations under the U.N.’s Kyoto Protocol. Companies that emit less than their allowance can sell the difference on the trading market to firms that exceed their established limits.
