Jim Sinclair: Noteworthy Articles

[sandi66]

Jim Sinclair - The Day Securitized Debt On Mortgages Died


"Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. "Stand and Deliver or Go Home" should be the rallying cry of the gold longs to the paper gold shorts." --Trader Dan Norcini


Dear Comrades In Golden Arms,



The following is BREAKING NEWS:



Racketeering suits (RICO), now as civil class action suits in two states, have hit the nail on the head. The civil suit says the banks do not have proper title to the homes on which they are foreclosing. This by direct inference questions if securitized debt on mortgages have real collateral behind them.



Simply stated a long time ago by Marie Mcdonnell and myself, THEY DO NOT.



That means legacy assets are cooked, dead, and worthless, yet are now marked up in value to cost and above. This is all thanks to FASB's capitulation that now represents a large amount of capital for the Western world's financial entities.



The you know what hit the fan today for those that understand. October 4th 2010, the essence of securitized debt on mortgages died!



That alone gives you gold at $1650.

jsmineset.com/




ty joye

[sandi66]

Jim Sinclair newsletter below

jsmineset.com The Biggest Fraud Ever In Capital Markets

business-news.thestreet.com/link/?http://feeds.voices.washingtonpost.com/click.phdo?i=ecbee33f3feb3dd520e07264e11086db;;;http://business-news.thestreet.com/business/2010/10/08/a/708835705-this-is-the-biggest-fraud/;;;http://business-news.thestreet.c
Janet Tavakoli is the founder and president of Tavakoli Structured Finance Inc. She sounded some of the earliest warnings on the structured finance market, leading the University of Chicago to profile her as a "Structured Success," and Business Week to call her "The Cassandra of Credit Derivatives." We spoke this afternoon about the turmoil in the housing market, and an edited transcript of our conversation follows.

Ezra Klein: What’s happening here? Why are we suddenly faced with a crisis that wasn’t apparent two weeks ago?

Janet Tavakoli: This is the biggest fraud in the history of the capital markets. And it’s not something that happened last week. It happened when these loans were originated, in some cases years ago. Loans have representations and warranties that have to be met.
In the past, you had a certain period of time, 60 to 90 days, where you sort through these loans and, if they’re bad, you kick them back.

If the documentation wasn’t correct, you’d kick it back. If you found the incomes of the buyers had been overstated, or the houses had been appraised at twice their worth, you’d kick it back. But that didn’t happen here. And it turned out there were loan files that were missing required documentation. Part of putting the deal together is that the securitization professional, and in this case that’s banks like Goldman Sachs and JP Morgan, has to watch for this stuff. It’s called perfecting the security interest, and it’s not optional.

EK: And how much danger are the banks themselves in?

JT: When we had the financial crisis, the first thing the banks did was run to Congress and ask for accounting relief. They asked to be able to avoid pricing this stuff at the price where people would buy them. So no one can tell you the size of the hole in these balance sheets. We’ve thrown a lot of money at it. TARP was just the tip of the iceberg. We’ve given them guarantees on debts, low-cost funding from the Fed. But a lot of these mortgages just cannot be saved. Had we acknowledged this problem in 2005, we could’ve cleaned it up for a few hundred billion dollars. But we didn’t. Banks were lying and committing fraud, and our regulators were covering them and so a bad problem has become a hellacious one.

EK: My understanding is that this now pits the banks against the investors they sold these products too. The investors are going to court to argue that the products were flawed and the banks need to take them back.

JT: Many investors now are waking up to the fact that they were defrauded. Even sophisticated investors. If you did your due diligence but material information was withheld, you can recover. It’ll be a case-by-by-case basis.

EK: Given that our financial system is still fragile, isn’t that a disaster for the economy? Will credit freeze again?

JT: I disagree. In order to make the financial system healthy, we need to recognize the extent of our losses and begin facing the fraud. Then the market will be trustworthy again and people will start to participate.

EK: It sounds almost like you’re saying we still need to go through the end of our financial crisis.

JT: Yes, but I wouldn’t say crisis. This can be done with a resolution trust corporation, the way we cleaned up the S&Ls. The system got back on its feet faster because we grappled with the problems. The shareholders would be wiped out and the debt holders would have to take a discount on their debt and they’d get a debt-for-equity swap. Instead we poured TARP money into a pit and meanwhile the banks are paying huge bonuses to some people who should be made accountable for fraud. The financial crisis was a product of our irrational reaction, which protected crony capitalism rather than capitalism. In capitalism, the shareholders who took the risk would be wiped out and the debt holders would take a discount but banking would go on.

By Ezra Klein | October 8, 2010; 1:27 PM ET
Categories: Housing Crisis, Interviews









About Jim Sinclair



Jim Sinclair is the Chairman and CEO of Tanzanian Royalty Exploration Corporation (TRE: Altanext NYSE platform, TNX: Senior Toronto Stock Exchange). He is a precious metals and commodities specialist. Some of the highlights of his nearly 50 year career include the founding of Sinclair Group of Companies (1977), which offered full brokerage services. Mr. Sinclair served as a Precious Metals Advisor to Hunt Oil and the Hunt family for the liquidation of their silver position as a prerequisite for the $1 billion loan arranged by the Chairman of the Federal Reserve, Paul Volcker. He was also a General Partner and Member of the Executive Committee of two New York Stock Exchange firms and President of Sinclair Global Clearing Corporation and Global Arbitrage .

He has authored numerous magazine articles and three books dealing with a variety of investment subjects. He is a regular speaker at various commodities related events.

In January 2003, Mr. Sinclair launched, "Jim Sinclairs MineSet," which now hosts his gold commentary and is intended as a free service to the gold community.

"Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. "Stand and Deliver or Go Home" should be the rallying cry of the gold longs to the paper gold shorts." --Trader Dan Norcini


Dear Comrades In Golden Arms,


This is not an exaggeration. If anything, it might be an understatement.



I told you about this last week as a class action with a RICO statute was filed against servicers acting for international investment banks foreclosing on loans that represented the collateral for securitized mortgage debt, a fraudulent OTC derivative.



The banksters tried to sneak through a bill that would make their criminal actions legal. The screams were heard in the White House and before the bill passed all its requirements the President vetoed it. That occurred even before the bill had completed its required procedures.



We are now in Crisis #2 which can eclipse anything you have seen yet because of the size of the creation of this pariah in the OTC derivative disaster.



This will not pass quietly. It is going to tear the dickens out of what is left of the financial firms that brought the horror to the Western World. It will be orders of magnitude uglier than anything you have seen so far.



Gold is headed to $1650 for starters. When it vaults, the price will move hundreds of dollars in a matter of days.



When all this began, before others, I told you via JSMineset that "This is it! " Now I am telling you the final you know what has hit the fan. The geometric rise in gold and fall in the dollar are now at the doorstep.



Are you ready? I am, everywhere and in every sense!



'This is the biggest fraud in the history of the capital markets'



Janet Tavakoli is the founder and president of Tavakoli Structured Finance Inc. She sounded some of the earliest warnings on the structured finance market, leading the University of Chicago to profile her as a "Structured Success," and Business Week to call her "The Cassandra of Credit Derivatives." We spoke this afternoon about the turmoil in the housing market, and an edited transcript of our conversation follows.



Ezra Klein: What's happening here? Why are we suddenly faced with a crisis that wasn't apparent two weeks ago?



Janet Tavakoli: This is the biggest fraud in the history of the capital markets. And it's not something that happened last week. It happened when these loans were originated, in some cases years ago. Loans have representations and warranties that have to be met. In the past, you had a certain period of time, 60 to 90 days, where you sort through these loans and, if they're bad, you kick them back. If the documentation wasn't correct, you'd kick it back. If you found the incomes of the buyers had been overstated, or the houses had been appraised at twice their worth, you'd kick it back. But that didn't happen here. And it turned out there were loan files that were missing required documentation. Part of putting the deal together is that the securitization professional, and in this case that's banks like Goldman Sachs and JP Morgan, has to watch for this stuff. It's called perfecting the security interest, and it's not optional.



EK: And how much danger are the banks themselves in?



JT: When we had the financial crisis, the first thing the banks did was run to Congress and ask for accounting relief. They asked to be able to avoid pricing this stuff at the price where people would buy them. So no one can tell you the size of the hole in these balance sheets. We've thrown a lot of money at it. TARP was just the tip of the iceberg. We've given them guarantees on debts, low-cost funding from the Fed. But a lot of these mortgages just cannot be saved. Had we acknowledged this problem in 2005, we could've cleaned it up for a few hundred billion dollars. But we didn't. Banks were lying and committing fraud, and our regulators were covering them and so a bad problem has become a hellacious one.



EK: My understanding is that this now pits the banks against the investors they sold these products too. The investors are going to court to argue that the products were flawed and the banks need to take them back.



JT: Many investors now are waking up to the fact that they were defrauded. Even sophisticated investors. If you did your due diligence but material information was withheld, you can recover. It'll be a case-by-by-case basis.

[sandi66]

Jim Sinclair Update via email:


jsmineset.com/


Securitized Mortgage Debt:
The Shot That Will Kill Many Financial Entities


Posted: Oct 11 2010

By: Jim Sinclair Post Edited: October 11, 2010 at 8:40 pm

Dear CIGAs,

I am asking for your attention again because of the depth of the fraud and now the size of the securitized mortgage debt OTC derivative pile of garbage that is in the trillions. This entire mountain of weapons of mass financial and social destruction is now in question. I have been telling you this for more than 2 years since the manufacturers and distributors of this crap were called by the NY Fed due to the loss of control over the paperwork.

I had dinner with my former partner, then lead director of and CEO of Bear Stearns. I could not contain myself so I asked him why he did so much business in OTC derivatives which were certain to bankrupt them. The answer I got was it was more than 50% of their profit. The right answer should have been it was more than 80% of their earnings.

Securitized mortgage debt is going to be the final shot that kills all kinds of financial entities in the Western world. The biggest holder of this putrid junk is pension funds.

Please! If you have not listened to all of the following video, do.
Please forward this to your friends.

The fellow with the sign that says the world is going to end is WRONG. Financially, it ended with the flushing of Lehman
Father, before you forgive them, please consider that they knew exactly what they were doing.

This is the largest fraud in the history of capital markets with the facts outlined with humor.

Click here to watch the video…




Dear Comrades In Golden Arms,




I am asking for your attention again because of the depth of the fraud and now the size of the securitized mortgage debt OTC derivative pile of garbage that is in the trillions. This entire mountain of weapons of mass financial and social destruction is now in question. I have been telling you this for more than 2 years since the manufacturers and distributors of this crap were called by the NY Fed due to the loss of control over the paperwork.



I had dinner with my former partner, then lead director of and CEO of Bear Stearns. I could not contain myself so I asked him why he did so much business in OTC derivatives which were certain to bankrupt them. The answer I got was it was more than 50% of their profit. The right answer should have been it was more than 80% of their earnings.



Securitized mortgage debt is going to be the final shot that kills all kinds of financial entities in the Western world. The biggest holder of this putrid junk is pension funds.



Please! If you have not listened to all of the following video, do.
Please forward this to your friends.



The fellow with the sign that says the world is going to end is WRONG. Financially, it ended with the flushing of Lehman



Father, before you forgive them, please consider that they knew exactly what they were doing.



This is the largest fraud in the history of capital markets with the facts outlined with humor.



Click here to watch the video...

www.msnbc.msn.com/id/21134540/vp/39582228#39582228




ty joye and nalmann

[sandi66]

JIM SINCLAIR: OTC derivative cannot stand the light of day in court, a demand letter is a powerful first tool.

Posted By: watcher51445 <Send E-Mail>
Date: Tuesday, 19-Oct-2010 16:50:42 Dear Friends,

It is apparently above the head of most of the sheeple, but today the majority of OTC derivatives known as securitized mortgage debt ended.

The presence of the NY Fed in this potential litigation says that the Fed is holding paper which does not qualify for holding according to its own indenture.

This is the end of the majority of a pile of garbage two trillion dollars high. This is one of the best reasons to own gold, regardless of the mindless actions of algorithms impacting price today.

The New York Fed, Pimco and others threaten litigation via demand letters to force the Bank of America to buy back $47 billion in OTC derivatives known as securitized mortgage debt.

Because the OTC derivative cannot stand the light of day in court, a demand letter is a powerful first tool.

Respectfully,
Jim

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JIM SINCLAIR: OTC'S "BAT GUANO ASSET CATEGORY" (COUNTERFEIT B-3392-181 C.D.O'S)

www.rumormillnews.com/cgi-bin/archive.cgi?read=113071

Well folks, THE BAT CHIT HAS HIT THE FAN! These Category 3 Assets and the Failure of the Basel Agreement were brought about by those in the Philippines "Counterfeiting" US DEBT" using DURHAM HOLDING TRUST, Tias 12087's "Retired Corporation" known as Cosmos Seafood Energy Marketing, Ltd; Nevada ID 1707-85 backed by a 'forged signature' of the murdered CEO, Russell Herrmann aka HERMAN, which was NOTARIZED four years after his DATE OF DEATH.

Now the world is up to its eyeballs in Counterfeit Collateralized Debt Obligations which the entire world thought was written on "THE DULY CONSTITUTED CONTRACT "BONUS 3392" OF APRIL 14-27th, 1875, Sold in New York, New York with the SOVEREIGN CERTIFICATE OF INDEBTEDNESS OF PERU NUMBER 181 on May 1, 1875 which is "OWNED" and HELD IN TRUST by Durham (Intl. Ltd;) Holding Trust, Tias 12087, Ida Grove, Iowa 51445 U.S.A.

And that, Boys and Girls, Ladies and Gents is what LEO WANTA and VICE PRESIDENT CHENEY were involved in with the MUSLIM LADY in the Philippines which we can classify as FINANCIAL TERRORISM against We the People..but you can read about it at www.theantechamber.net/V_K_Durham/More911FinancialTerror.htm and you can go on over to www.theantechamber.net and look up the GIGA ACCOUNTS and there you will find Hillary, Wanta, Bush and the entire group and their OffShore Grand Cayman Accounts..then there is the matter of the BLACKMAILING of Jeb Bush which can be read at www.theantechamber.net/Contact/Contact11205/ContactIndex.htm ...

Now..who's going to pull the switch..and send these FIVE TRAINS on the same track headed for a head on collision.. and get them safely back into "the round-house" for patching up and repairs?

I warned all of you including the G-7 NATIONS, CHINA, RUSSIA, THE WORLD BANK, FRANCE, GERMANY, EVEN THE ENGLISH PARLIAMENT..and so on.. Even though it was my collateral.. and I had not authorized the usage..everyone thought it was perfectly fine..to murder, forge, steal and disrupt the global Civil Peace to cover all of this up..

Well..THE CHICKENS HAVE COME HOME TO ROOST.. The only way these IRONS can be pulled out of the fire..is PLAYING NICE with Durham Holding Trust, Tias 12087.. Like it or not.. A WOMAN has hold of the Reins with a "CUTTING BIT" in the mouth of this "Night-Mare"..

To show good faith.. THE ONES WHO MURDERED MY HUSBAND WILL FIND IT NECESSARY TO 'BITE THE BITTER PILL'... And the DEBT SWAP-DEBT CONVERSION payment of $6.5 TRILLION DOLLARS GOLD COLLATERAL for the U.S. AND AMERICAN CONTINENTAL DEBT shall be credited as PAID IN FULL. Then I will pick up the pieces at .10cents on the dollar..with LEGITIMATE COLLATERAL.

Thanks for the confirmation, Jim. I've been waiting for A RELIABLE SOURCE TO CONFIRM and your about as RELIABLE S THEY GET.

V.K. Durham,CEO
Durham Holding Trust, Tias 12087
Ida Grove, Iowa 51445 U.S.A.

Posted On: Tuesday, November 13, 2007, 12:12:00 PM EST

Category 3 Assets and the Failure Of The Basel Agreement

Author: Jim Sinclair

Dear CIGAs,

I have defined Asset Category 3 as a "Bat Guano Asset Category"

Here is the why:

Let's look at this through eyes of international investment banks, at least for starters. Please stay with me as this is the key to the crisis.

There have been three basic agreements named the Basel Agreement of 1993, 1998, and 2006. The main objectives are limited to accounting community functions, categories, risk and therefore evaluation of those items where assets are concerned.

It is apparent that the 1998 Basel Agreement had no idea what the size of off and on balance sheet assets were going to become via OTC derivatives, nor the complexity of these special performance contracts.

The 2006 Basel Agreement was getting closer to knowing the size, but still did not entirely understand the operating risk of these awful pieces of paper. This accord of the 2006 Basel Agreement focused on the evaluation of risk based capital ratios as well as traditional leverage ratios. Their original focus was centered on the traditional category 1 and 2 assets. When looking at on balance sheet assets for category 3 and 4 they set potential risk at 50% and 100% respectively.

Category 3 assets refer to loans fully secured by first liens on one to four family residential properties and the revenue for municipal bonds.

What operation "White Noise" is used for is to camouflage the failure of the Basel Accord to consider or recognize that the assets in question are packed full of credit and default over the counter special performance contracts called OTC derivatives. As such the problem today really is not a category 3 asset, but is called that because there is some similarity. That is the foundation of operation "White Noise" in all its forms.

The characteristics of the credit and default derivatives are:

Without regulation.
Without listing on public exchanges.
Without standards.
Therefore not in the least bit transparent.
Therefore without an open market of the bid/ask type.
Dealt in by private treaty negotiations.
Without a clearinghouse.
Unfunded without financial guarantee of any kind.
Functioning as contracts of specific performance.
Financial character or ability to perform is totally dependent on the balance sheet of the loser in the arrangement.
Evaluated by computer assumptions made by geek, non market experienced mathematicians who assume religiously that all markets return to their normal relationships regardless of disruptions.
Now in the credit and default category alone considered by accepted authorities as totaling more than USD$20 trillion in notional value.
Notional value becomes real value when the agreement is forced to find a real market for ending the obligation which is how one says sell it.
The Basel Accord coming out of the Basel Agreement of 2006 put the risk on these items as 50% of their stated worth.

I propose the risk is greater that 100% on the items described above. The reason I say this is that the problem is credit and default OTC derivatives on CDOs which is a form of derivative themselves as a structured product, making these items exotic in their nature. Due to this, these special performance exotic structured products are impossible to value honestly. To value them at zero is a good start. When they kill a company it is zero plus the impact on that entity’s solvency which is therefore greater than 100%

This entire dissertation is in defense of my statement that Category 3 assets under the Basel Accord of 2006 now equal “BAT GUANO ASSETS” under the cover of operation "White Noise."

It is these bat guano assets that are melting down everywhere. As such this is without any question a derivative crisis.

( Click on the link below to visit our website. )

www.jsmineset.com/

Copyright © 2007 Jim Sinclair's MineSet All rights reserved

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www.rumormillnews.com/cgi-bin/forum.cgi?noframes;read=185327

[sandi66]

This is one of the BEST blogs on the NET at this time, jsmineset.com/

The following is Just One, One of the great Articles that Jim has posted today:
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Jim’s Mailbox
Posted: Oct 21 2010 By: Jim Sinclair Post Edited: October 21, 2010 at 7:07 pm

Filed under: Jim's Mailbox

Fannie and Freddie may need another $215 billion
CIGA Eric

This is certainly dollar friendly, right? Don’t think so.

Fannie Mae (OTC BB:FNMA.OB – News) and Freddie Mac (OTC BB:FMCC.OB – News) may need as much as $215 billion in additional capital from the Treasury through 2013 to offset losses and maintain a positive net worth, their federal regulator said on Thursday.

Source: finance.yahoo.com



*****************************

Market Commentary From Monty Guild
Posted: Feb 24 2011 By: Monty Guild Post Edited: February 24, 2011 at 11:16 pm

Filed under: Guild Investment

Boom!

Governments are being brought to their knees with startling speed. I spent this past Saturday in Bangkok watching the Asian news channels showing the demonstrations and various news feeds from Al Jazerra, CNN, and the BBC. I saw rioting all over the Middle East in at least six or seven countries, and the demonstrators seem intent on removing long-term, multi-decade governments from power.

The dominoes have started to topple. Tunisia, Egypt (two countries where change at the top has already happened), Libya (where change at the top is being fought for in the streets as we write this letter), Bahrain (where the Shia majority has started protesting against the Sunni royalty), Morocco, Algeria, Jordan, Yemen, Kuwait have all seen public protests against leadership. We have also seen smaller protests in Iran, Albania, Thailand, China, and Bolivia.

Many rulers overstay their welcome and try to make a type of kingship out of their regime. The days are numbered for dictatorial or oppressive leaders who have ruled for decades.

Boiling Discontent

We go on record predicting that there will be more changes in governments at the top over the next two years than in any decade in the last 100 years. We predict that there will be dozens of countries following the Egyptian, Tunisian, Bahraini and Libyan examples. There will be some of these changes in Asia, but many more in the Middle East, Africa, and several in South America. We are aware that this claim sounds extraordinary, but we can see the writing on the wall.

Global Hot Spots: Some Are Just Simmering, Some Boiling Over



Click map to increase size

Systems of oppression that keep people in the dark are being riotously expelled and replaced by information-sharing. The two will prove mutually exclusive. In our opinion, history will hold that Google, Facebook, Apple, Twitter, and many companies that supply the Internet, especially the mobile Internet, with software and hardware will be among the midwives of this revolution.

The electronic revolution is not just about new technology; it’s about technology’s impact on society. Just as television and radio helped to bring down the iron curtain and the Berlin wall, so today a more modern and more powerful force is rooting out corruption and autocracy.

This revolution will bring down governments, but it does not have to bring anarchy. These changes eventually can give a voice to many millions who have been kept silent. However, the power vacuums are often exploited by radical, fringe elements who seem to thrive on disruption. Long-term, we expect that more open societies will generate positive effects, but the near term could be pretty rough.

The Guild Guide

What This Means for Investors

Technology

There are hundreds, in fact thousands of companies benefitting from this technological revolution. Many of them are U.S. companies, but some are from Japan, India, Europe, Taiwan, and South Korea, among other technology-centric economies. Many countries will benefit greatly from this revolution. The mobile Internet with all of its devices and modes of expression will be remembered by history as the force that made the difference.

Oil

Kuwait and Libya are major world oil producers, and Kuwait, along with Bahrain and Yemen share part of Saudi Arabia’s 1,100 mile border. Saudi Arabia has a relatively small population with a large immigrant worker community, many from Pakistan which has become the current home to much of the Taliban.

Many questions surround the geopolitical changes taking place in the oil producing region. Will the straits of Hormuz or the Suez Canal be closed? Will governments not sympathetic to western oil consuming interests take charge? It is hard to say, but we do know that the risk of disruption to oil flows to Europe, Asia , and to the U.S. have escalated sharply.

Geopolitics reminds us once again why we are recommending that investors own substantial positions in oil and gold.

If oil quickly moves to $150 per barrel, it can be good for oil related stocks, but it is definitely not good for the world’s stock markets, so we recommend that investors monitor oil prices closely, looking to raise some cash or put out some hedges on stock market positions.

Global Investment Watch

Every fortnight we will focus on the investment climate in an individual country. Two weeks ago, we discussed Canada. An upcoming letter will discuss the investment opportunity in Japan.

Summary

Investors in this environment should continue to own oil, gold and silver. Japan is looking like a great long-term play if oil and gas prices don’t skyrocket.

We expect big consumers of oil and food to start hoarding at this juncture as fears about the continued availability of oil escalate. Libya has already declared force majeure with respect to its oil delivery obligations. Which domino is next? We have said recently that investors should own energy investments now, and this bears repeating. We recommend owning them and owning them in size.

Our Recommendations—In Review

Bonds

Intermediate and long-term bonds are still presenting risk of falling, and we still recommend avoiding them entirely.

Gold

Continue to own gold. We have been bullish since June 25, 2002, when gold was selling at about $325 per ounce. We see gold moving to $1,500 and then higher. Traders should sell spikes and buy dips.

Food and Farm-Related Stocks

These continue as a favorite investment target of ours. We have been bullish on grains and farm-related shares since late 2008. Continue to hold and acquire investments in food and grain related industries on dips. The possibility of food crises in Africa, Asia and Latin America is very real.

Oil

Since February 11, 2009, when oil was trading at $35.94 per barrel, we have recommended that investors own oil investments in their portfolios…and the reasons for owning it are increasing each day.

Currencies

Since September 14, 2010, we have favored the Singaporean, Thai, Canadian, Swiss, Brazilian, Chinese, and Australian currencies. Use pullbacks in these currencies as an opportunity to establish long-term positions. For long-term investment, we do not like the U.S. dollar, Japanese yen, British pound, or the Euro.

Global Stock Selections

For stock investments throughout the world we base our recommendations on careful studying of individual companies and industries, always keeping in mind that companies and sectors are at differing stages of growth. In developed countries, technology, precious metals, and commodity producers (food, oil, and base metals) will all benefit from an improving economy and a developing back-to-work trend in the U.S. and Europe.

Since September 9, 2010, we have thought U.S. stocks will go up as money flows into them and out of bonds. We recommend investors use corrections, which can occur at any time, as buying opportunities.

Japan and Australia were added last week to our list of favored countries. We are also still maintaining our bullish position on Canada, South Korea, and are keeping half of our original position in Colombia.

We continue to monitor world events closely, and encourage readers keep an eye out for changes to our recommendations. A summary of our current recommendations can be found in the table below:
Investment
Date Recommended
Appreciation/Depreciation in U.S. Dollars

Commodities

Gold
6/25/2002
335.1%

Corn
12/31/2008
69.9%

Soybeans
12/31/2008
34.7%

Wheat
12/31/2008
25.1%

Oil
2/11/2009
173.0%

Currencies

Singapore Dollar
9/13/2010
4.7%

Thai Baht
9/13/2010
5.6%

Canadian Dollar
9/13/2010
4.1%

Swiss Franc
9/13/2010
8.5%

Brazilian Real
9/13/2010
2.2%

Chinese Yuan
9/13/2010
2.6%

Australian Dollar
9/13/2010
7.5%

Countries

U.S.
9/09/2010
18.4%

Colombia (half of our original position)
9/13/2010
-1.6%

Canada
12/16/2010
8.4%

South Korea
01/06/2011
-5.6%

Australia
02/15/2011
-1.1%

Japan (new buy, hedge yen exposure)
02/15/2011
-2.0%



To view current and past recommendations, and see how we have performed, please go to our Commentary Archive and Recommendation Tracker at www.guildinvestment.com.

jsmineset.com/

[sandi66]

"Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. "Stand and Deliver or Go Home" should be the rallying cry of the gold longs to the paper gold shorts." --Trader Dan Norcini


Dear Friends,


Between now and Monday, February 28th be prepared for panicked short sellers who cannot make delivery to try every trick in the book to buy back their short positions.

The following is information from Dr. Jim Decosta:

Here is the URL:
www.finra.org/Industry/Regulation/RuleFilings/2010/P121892?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+FINRARuleFilings+(FINRA+Rule+Filings)

Quote: There's 3 new laws gaining attention in the NSS market reform arena: FINRA 4320 goes into effect on 2/28/11. It mandates 13 day buy-ins for open delivery failures FINALLY applying to shares of non-reporting corporations. FINRA 2010-043, also starting on 2/28/11 reinstates the "short sale exempt" (SSE) marking requirements for trade reporting and the OATS system. Those MMs accessing the bona fide MM exemption from executing pre-borrows or "locates" before admittedly naked short sales must now FORMALLY acknowledge the accessing of that universally-abused exemption. Being that these trades are theoretically being made to "inject liquidity" then the excuse to hide the related trade data from the public's eyes goes out the window. You can't have it both ways and claim the bona fide MM exemption and later claim that the related trade data needs to be kept secret because it might reveal a "proprietary trading strategy".

Truly bona fide MMs that are able to legally access that universally-abused exemption cover their naked short position on the next downtick after their short sale when buy side liquidity is in need of being ejected as share prices fall. The 3rd new rule which is in effect now states that the offers and bids that MMs post must be of approximately the same size. No longer can the offers be of 1 million shares and the offsetting bid good for the minimum 5,000 shares.

The verbiage in 4320 is especially well done as it FINALLY puts the clearing firms that aid and abet this crime wave on the spot. With the FFETF, which is made up of 25 different agencies, now on the scene the transparency has increased markedly. You can imagine how critical the lack of transparency is to a crime involving selling nonexistent securities and then refusing to ever deliver that which you sold AFTER being allowed access to the funds of the investor being defrauded.

Here are the links to the rules SR-FINRA-2010-028 and SR-FINRA-2010-043:
www.finra.org/Industry/Regulation/RuleFilings/2010/P121522

Notice the part I marked in bold in the quote above:
"FINRA 4320 goes into effect on 2/28/11. It mandates 13 day buy-ins for open delivery failures FINALLY applying to shares of non-reporting corporations."

jsmineset.com/

******************

About Jim Sinclair



Jim Sinclair is the Chairman and CEO of Tanzanian Royalty Exploration Corporation (TRE: Altanext NYSE platform, TNX: Senior Toronto Stock Exchange). He is a precious metals and commodities specialist. Some of the highlights of his nearly 50 year career include the founding of Sinclair Group of Companies (1977), which offered full brokerage services. Mr. Sinclair served as a Precious Metals Advisor to Hunt Oil and the Hunt family for the liquidation of their silver position as a prerequisite for the $1 billion loan arranged by the Chairman of the Federal Reserve, Paul Volcker. He was also a General Partner and Member of the Executive Committee of two New York Stock Exchange firms and President of Sinclair Global Clearing Corporation and Global Arbitrage .

He has authored numerous magazine articles and three books dealing with a variety of investment subjects. He is a regular speaker at various commodities related events.

In January 2003, Mr. Sinclair launched, "Jim Sinclairs MineSet," which now hosts his gold commentary and is intended as a free service to the gold community.

[sandi66]

"Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. "Stand and Deliver or Go Home" should be the rallying cry of the gold longs to the paper gold shorts." --Trader Dan Norcini


Dear Friends,



Eric King of King World News was kind enough to interview me on today's gold market action. Please click the link below to listen to the interview.

www.kingworldnews.com/kingworldnews/Broadcast/Entries/2011/3/11_Jim_Sinclair.html or tinyurl.com/4d2zpom



Friday, March 11, 2011
Jim Sinclair

Jim Sinclair: Founder of jsmineset.com & Chairman of Tanzanian Royalty Exploration - Legendary Jim Sinclair known as Mr. Gold for his remarkably accurate timing regarding the gold bull market of the 70’s. Jim‘s not a legendary trader by chance. He had access to greatness in trading and markets that very few human beings have ever witnessed. His father Bert Seligman was business partners with legendary trader Jesse Livermore. King World News is thankful to Jim Sinclair for sharing his half a century of market experience and valuable time with KWN followers globally.
Friday, March 11, 2011
Jim Sinclair

Biography from jsmineset.com


JIM SINCLAIR - Chairman of Tanzanian Royalty Exploration & Founder of Jim Sinclair’s Mine Set





Jim Sinclair is primarily a precious metals specialist and a commodities and foreign currency trader. He founded the Sinclair Group of Companies (1977), which offered full brokerage services in stocks, bonds, and other investment vehicles. The companies, which operated branches in New York , Kansas City, Toronto , Chicago , London and Geneva , were sold in 1983.





From 1981 to 1984, Mr. Sinclair served as a Precious Metals Advisor to Hunt Oil and the Hunt family for the liquidation of their silver position as a prerequisite for the $1 billion loan arranged by the Chairman of the Federal Reserve, Paul Volker.





He was also a General Partner and Member of the Executive Committee of two New York Stock Exchange firms and President of Sinclair Global Clearing Corporation (commodity clearing firm) and Global Arbitrage (derivative dealer in metals and currencies).





In April 2002, shareholders of Tanzanian Royalty Exploration (formerly Tan Range Exploration) approved the acquisition of Tanzania American International, a company controlled by the Sinclair family, for shares in Tan Range . Following this transaction, Mr. Sinclair became Chairman of Tan Range and now leads its efforts to become a gold royalty company.





He has authored numerous magazine articles and three books dealing with a variety of investment subjects, including precious metals, trading strategies and geopolitical events, and their relationship to world economics and the markets. He is a frequent and enormously popular speaker at gold investment conferences and his commentary on gold and other financial issues garners extensive media coverage at home and abroad.





In January 2003, Mr. Sinclair launched, “Jim Sinclairs MineSet,” which now hosts his gold commentary and is intended as a free service to the gold community.

[sandi66]

Jim Sinclair - Gold Explosion, Oil $150 to $200, Continued QE

March 10, 2011

Jim Sinclair continues:





“So I would say to any of our audience who is interested in gold, who’s trading gold, who’s buying insurance in gold, that if you analyze what happened today, you’ve got your guarantee that gold will trade at $1,650 and probably an awful lot higher.”





When asked if we will get disorder to the upside in gold Sinclair commented, “Absolutely, the guarantee of it is the sentiment...If you take the violence that you’ve got at $,1400, can you imagine what the violence would be at $2,400? But I love the way Dean Harry Schultz approaches it, he’s told us all not to bother him, but you can wake him up at $2,400...You’ve had an arithmetic rise in gold, wait until you see what geometric looks like.”





When asked how frightening will that be for the public (the geometric rise in gold) Sinclair stated, “I’m scared to death right now when I look around and see the people out of work. I’ve got both husband and wife working for me to give you an idea of the problems that families have had. If you don’t think that civil unrest won’t find its way to the United States as it has found its way to Ireland, to France and to Italy and the Middle-East, you’re whistling dixie.





Today the sentiment is negative but truthfully the fundamental of today is the most positive fundamental you could possibly get as weakening economic figures demand QE2, QE3, QE4 and so forth.





At the same time the change in the Middle-East is a world change. It’s not this spontaneous explosion of democracy. Those guys that are fighting in Libya, take a look at them. They are wearing bandoliers of 51 caliber around them, this is not exactly your store owner and farmer who is rebelling. And you’ve got to ask who will benefit the most from what is going on?





This is organized, planned, designed, and anti-west, over which Iran will come out the most powerful entity in the Middle-East. What that means is that oil will trade at $150, possibly $200 (per barrel). And if you add into that the fact that we have passed peak oil which was a concept that you would look at 15 and 20 years out, because of peak oil added to that equation...the gold market is going longer and higher because of what’s happened in the last month than it would have before.”





When asked about the US dollar Sinclair commented, “The dollar and the long bond market are very closely tied. A lack of willingness to buy our long bonds is in a sense, in a very real sense a negative on the US dollar...So the dollar will be wild, but lower on balance.





The dollar chart has been horrible for a long time. The dollar’s chart broke down with six head and shoulders. I mean how bad can you get? And it developed an enormous head and shoulders. Not like gold, the dollar will follow its chart which will be a product of the long bond collapse.”





The complete interview with Jim Sinclair will be released today and you can listen to it by CLICKING HERE.





Jim Sinclair is not a legendary trader by chance. He had access to greatness in trading and markets that very few human beings have ever witnessed. His father Bert Seligman was business partners with legendary trader Jesse Livermore. King World News is thankful to Jim Sinclair for sharing his half a century of market experience and valuable time with KWN followers globally.





Eric King


KingWorldNews.com


kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/3/10_Jim_Sinclair_-_Gold_Explosion,_Oil_$150_to_$200,_Continued_QE.html

ty DiamondShare

[sandi66]

"Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. "Stand and Deliver or Go Home" should be the rallying cry of the gold longs to the paper gold shorts." --Trader Dan Norcini


Dear Friends,



Gold is a product of debt, not business activity.



If there was no business and no debt there would not be any interest in gold.



If there was good business and no debt there would not be much interest in gold.



When there is over the top Western world debt in either good or bad business gold goes over the top.



When there is a problem with the reserve currency over Western world debt, by default gold goes over the top, re-enters monetary system holdings, and makes 80% of its gain.



Respectfully,
Jim