BREAKING NEWS: Jim Sinclair - The Impending Undeclared Default Of 5 Major US Banks

"The following interview with Ellis Martin covers in detail the impending undeclared default of 5 major US banks this week by the International Swaps and Derivatives Association.

This even has the potential to cause a second financial crisis that would require significant financial intervention. If you have time to spare, listen to this interview. If you don’t have time to spare, listen to it anyway."

- Source: http://www.jsmineset.com/

The Road to Serfdom by Friedrich A. Hayek - Illustrated

- The Road to Serfdom by Friedrich A. Hayek, provided by the Ludwig von Mises Institute:

http://mises.org/books/TRTS

Rick Rule - This System is Based on Fraud

"This is a global financial system increasingly based on institutional and government fraud and a monetary system that is based on confidence, based on fraud, based on force. In that environment it is my suspicion that gold and silver are much more likely to trend higher than lower on an intermediate-term basis.”

- Rick Rule via a recent King World News interview, read the full interview here:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/1/26_Rule_-_Monetary_System_is_Based_on_Confidence,_Fraud_%26_Force.html

Rampaging Fitch! Monster Downgrades!

Fitch just cut the long-term issuer ratings of 5 EU countries:

Belgium: AA+ to AA

Spain: AA- to A

Italy: A+ to A-

Cyprus: BBB to BBB-

Slovenia: AA- to A

It affirmed Ireland's BBB+ rating with a negative outlook.

While Fitch says that it supports EU leaders actions to address the crisis so far, a lot more has to happen before these countries are out of trouble.

- Source Business Insider, read more here:

http://www.businessinsider.com/fitch-goes-on-rampage-cuts-spain-italy-and-belgium-2012-1

Stephen Leeb - Fed Sparks 2nd Leg of Gold & Silver Bulls

I think what the Fed said yesterday is game-changing. They are opting for inflation and what really strikes me here, Eric, is they described their dual mandate in terms of employment first and price stability second. I don’t know any central bank that would put maximum employment in front of price stability. That’s not the mission of a central bank. Again, I think this is absolutely a game-changer.”

- Stephen Leeb via a recent King World News interview:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/1/26_Leeb_-_Fed_Game_Changer_Sparks_2nd_Leg_of_Gold_%26_Silver_Bulls.html

Jim Sinclair - Today was a Game Changer

“Today is an important day. There are many days we talk but this is a mile-marker. What the Fed did today is they turned on the light of what will be QE to infinity. Today the light went on with regards to the intentions of the Fed. They did that for very specific reasons, we have troubles people can’t see and this is one of the ways out.”

- Jim Sinclair via a recent King World News interview:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/1/25_Jim_Sinclair_-_Mainstream_Entities_Will_Now_Enter_Gold_Market.html 

Gold goes Ballistic - Fed says no rate hikes until late 2014

Wondering why gold just went ballistic in the matter of minutes?


"The Federal Reserve extended its conditional pledge to keep its benchmark interest rate close to zero by more than a year, saying the economy is growing too slow to meaningfully lower the unemployment rate."

Translation, QE to infinity

Gold for Oil: India and Iran Ditch Dollar

"According to a new and yet unconfirmed report, India bought oil from Iran using gold. India certainly has the gold resources to fund the oil, while Iran is under pressure by the West, due the continuation of its nuclear program."

The trend continues. More and more countries are moving away from using the unstable US dollar as the reserve currency of the world.

- Read the full article here:

http://www.forexcrunch.com/gold-for-oil-india-and-iran-ditch-dollar-report/ 

Explaining Today's Silver Surge

A few days ago, Eric Sprott decided to take advantage of the record premium over NAV of his physical silver fund PSLV (or for some other arbitrary reason) and to issue a $300MM follow-on offering, whose proceeds would be used to buy up silver to add to PSLV's existing physical holdings. Naturally, as soon as the news broke, the premium dropped to about 10%, making PSLV holders unhappy. This is not the first time that Sprott has done this: as a reminder after his April 2011 follow on offering in PHYS, we were fully expecting a comparable physical sequestration to occur via PSLV, to wit: "It appears to have already had an impact on silver, which jumped by $20 cents to another 31 year high on the news, as the market now likely expects a follow on offering in PSLV as well imminently." About 10 months later, it finally happened. As was to be expected, any short-term gains focused investors obviously became angry that by collapsing the premium, which we speculated was shortage driven, they have suffered a hit to their P&L (expressed in dollars of course, which as a reminder to the holders, should be largely irrelevant, especially to those who believe a PM-based barter system is imminent). Yet they forget the flip side to the equation: the money taken out of the premium, would be promptly used to take silver out of (hyper hypothecated) circulation, in other words, in the closed system, the drop in Premium would translate in a rising price in the underlying. Which according to UBS is precisely what has happened, and why silver moved as much as it did.Quoting from FMX Connect: "Today’s incredible move was the culmination of a comment made by UBS analyst Edel Tully. He stated that hedge fund manager Eric Sprott may be in the market buying spot futures in a private letter to his clients." And even as the premium dropped, the price of spot silver increased by over 5%, on the speculation of silver being taken out of the market and delivered to Sprott.

- Read the full article on Zerohedge here:

http://www.zerohedge.com/news/explaining-todays-silver-surge

$10 TRILLION Liquidity Injection Coming? Credit Suisse Hunkers Down Ahead Of The European Endgame

When yesterday we presented the view from CLSA's Chris Wood that the February 29 LTRO could be €1 Trillion (compared to under €500 billion for the December 21 iteration), we snickered, although we knew quite well that the market response, in stocks and gold, today would be precisely as has transpired. However, after reading the report by Credit Suisse's William Porter, we no longer assign a trivial probability to some ridiculous amount hitting the headlines early in the morning on February 29. Why? Because from this moment on, the market will no longer be preoccupied with a €1 trillion LTRO number as the potential headline, one which in itself would be sufficient to send the Euro tumbling, the USD surging, and provoking an immediate in kind response from the Fed. Instead, the new 'possible' number is just a "little" higher, which intuitively would make sense. After all both S&P and now Fitch expect Greece to default on March 20 (just to have the event somewhat "priced in"). Which means that in an attempt to front-run the unprecedented liquidity scramble that will certainly result as nobody has any idea what would happen should Greece default in an orderly fashion, let alone disorderly, the only buffer is having cash. Lots of it. A shock and awe liquidity firewall that will leave everyone stunned. How much.According to Credit Suisse the new LTRO number could be up to a gargantuan, and unprecedented, €10 TRILLION!

- Read the full story on ZeroHedge here:

http://www.zerohedge.com/news/10-trillion-ltro-coming-credit-suisse-hunkers-down-ahead-european-endgame

Ellis Martin Report with Jim Sinclair (QE 3 and Hyperinflaction)

"Ellis Martin and Jim Sinclair, President of Tanzanian Royalty Exploration Corporation (NYSE:TRX) discuss a third round of Quantitative Easing in an election year and its effect on currency and inflation, with a tip of the hat to the Shadow Statistic's, John Williams. Mr. Sinclair reiterates his prediction of $1700-$2100 gold this year and we review latest developments for Tanzanian Royalty and a look ahead for the next six month."

Neil Cavuto Ron Paul not only a force, he is a Phenomenon!

Note: This is coming from FOX News! The Mainstream media can no longer ignore Ron Paul. He is on a roll!

Ellis Martin Report with Jim Sinclair: A Big Surprise is Coming

"Ellis Martin and Jim Sinclair, President of Tanzanian Royalty Exploration Corporation (NYSE:TRX) discuss "mercantile sense" and intuitive investing. Mr. Sinclair also alludes to an unknown surprise within 48 hours of this interview."

Obama to ask for increase to debt ceiling in a 'matter of days'

"The Obama administration will be asking Congress to raise the debt limit in the coming days, White House press secretary Jay Carney said on Tuesday."

- Read the full article here:

http://thehill.com/homenews/administration/203359-obama-administration-to-ask-congress-for-debt-ceiling-increase-in-matter-of-days

Charms and Beads

Gartman admits he made a bad call on gold

DUH!

"Investment letter publisher Dennis Gartman declared Thursday that he was wrong about his bearish call on gold last month.

Writing in his daily investment letter, Mr. Gartman said he was reversing his position on gold, and now views the precious metal as being in a bull market."

and I love this part:

"When Mr. Gartman made the bear call last month, Mr. Grandich said he was willing to wager Mr. Gartman US          $1-million that gold will hit US$2,000 an ounce before it hits US$1,000 on the COMEX.

He even went as far as arranging for a law firm — Lomurro, Davison, Eastman & Munoz of Freehold, New Jersey — to hold the US$1-million in trust.

Mr. Gartman did not take up the offer."

- Read the full article here:

http://business.financialpost.com/2012/01/05/gartman-admits-he-made-a-blown-call-on-gold/

Jim Sinclair - Some Gold Stocks Are Bouncing Back

Jim Sinclair discusses his predictions for Gold in 2012. He is positively optimistic and also discusses how the Gold community was basically put on suicide watch in the last week of 2011, a sure sign of an oversold market.

Attack Piece on Ron Paul is Blowing up in the Establishments Face!

Just recently an attack ad on Ron Paul was released. This attack ad was titled the "The Ron Paul Chronicles". Twilight music is played in the background, and the video attempts to make Ron Paul look crazy.

The fortunate thing is, is that Ron Paul is correct about every point in this video and people are gaining knowledge from it.

You can see from the massive amounts of Dislikes vs Likes on Youtube that this video has. Another botched attempt by those trying to attack the bullet proof Ron Paul.

Better luck next time.

Silver Surges - Biggest Move in 3 Years

As stated before, the volatility is going to get more and more intense as this bull market moves on to its final peak (which is some years away). 


Silver has retraced all of last week's loses and is up 6.6%, the largest one day jump, in three years!