Haystack December 2011

English language haystack
Adamus
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Haystack December 2011

Post by Adamus » 01 Dec 2011, 09:51

Boefke wrote:Is this what a hyper-inflationary collapse looks like?

The FED is causing a tsunami of $'s all over the world.......everybody is applauding as savings are swept away in the blink of an eye.

We live in historical times.......

For the ECB thums up! And how can we sterilize this again :shock:
"Sterilize" the product of the ECB, why not opt for a total hysterectomy of the mother of banks? And of course castrate their helping hands, the -former- politicians. I feel so amputated :-(


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Rasta
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Re: Haystack December 2011

Post by Rasta » 01 Dec 2011, 10:04

Eventually there will be an awakening, a balancing of the scales and a bill to be paid, and for that I hold gold - Jim Sinclair

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Re: Haystack December 2011

Post by Rasta » 01 Dec 2011, 10:08

Eventually there will be an awakening, a balancing of the scales and a bill to be paid, and for that I hold gold - Jim Sinclair

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Re: Haystack December 2011

Post by Rasta » 01 Dec 2011, 10:14

Jim Sinclair: No Major Clearing House Can Fail

My Dear Friends,

I have not written much about the recent failure of a major clearing house out of respect for my friends who are caught in that situation.

A clearing house of note is the mechanism of the marketplace without which trading simply does not occur. This is a situation where "Too Vital to Fail” trumps “Too Big to Fail."

You want to know why the Fed organized the do nothing European leaders in concerted action along with China? The answer is no major clearing house can be allowed to fail because then the market mechanism is broken.

The reason that sovereign debt cannot fail is the five largest US banks hold trillions of dollars of credit default swap OTC derivatives guaranteeing that garbage against failure.

If euro debt fails, the Western financial world implodes, so it will not now.

"QE to Infinity" and gold at $4500 is coming as sure as death and taxes. Good call, Alf!

What a head fake gold gave last week, turning almost everyone, even some big guys, gold bearish. They should have known better.

Regards,
Jim
Eventually there will be an awakening, a balancing of the scales and a bill to be paid, and for that I hold gold - Jim Sinclair

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Re: Haystack December 2011

Post by Rasta » 01 Dec 2011, 20:11

Through JsMineset:

China Will Not Hesitate To Protect Iran Even With A Third World War

Eventually there will be an awakening, a balancing of the scales and a bill to be paid, and for that I hold gold - Jim Sinclair

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Re: Haystack December 2011

Post by Rasta » 03 Dec 2011, 10:17

Worth reposting because of it's implications:

Financial Sense Newshour: Ann Barnhardt: The Entire Futures/Options Market Has Been Destroyed by the MF Global Collapse

Jim is joined by Ann Barnhardt, who recently closed her commodity brokerage firm Barnhardt Capital Management after the MF Global collapse. She believes that her client monies were no longer safe in the futures and options markets, and that the entire system has been 'utterly destroyed' by the MF Global collapse.

Interview page - transcript - mp3 audio interview
Eventually there will be an awakening, a balancing of the scales and a bill to be paid, and for that I hold gold - Jim Sinclair

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Rasta
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Re: Haystack December 2011

Post by Rasta » 03 Dec 2011, 10:23

And our friend Jim Sinclair explains again the implications.

This is worthy your attention if you are still exposed to (any form of) paper!

JS MineSet: Clearing Houses Are The Mechanism Of All Markets

My Dear Extended Family,

We all know bank’s balance sheets are cartoons due to FASB’s capitulation on the fair market value issue, that the euro financial leaders do not deserve the title leader, and that the Fed is the source of liquidity for Euroland in unlimited cheap dollar swaps, but there is more.

That more is the first failure of a major clearing house.

Clearing is the mechanism of all markets.
It is the guts of the system.
It is the engine under the hood of finance.
It is the pulleys that turn inside the watch.
It is basic to finance for without clearing trades cannot close.

Without faith in the clearing house system where is faith that what your account statement says means anything whatsoever?

Unless MF clients are made whole in every way, the system is broken. It is as if the heads blew off the engine of finance. Where can you keep your money and investments if a clearinghouse is allowed for whatever reason to go broke, therein leaving the clients to suffer?

Are you safe even in a custodial account if the clearing mechanism can erase assets across the board as a product of insolvency for any reason?

The system is in a critical seizure.

It may take some time, but even the financial sheeple are going to worry about their own funds. God help you if you hit gold right on a paper exchange with the wrong clearing facility.

You are wholly dependent on the ability of the clearing house to pay into your account the winnings by deducting those funds from the loser. You are wholly dependent on the ability of the clearing house to guarantee the safety and security (are T Bills securities?) beyond SIPC levels. SIPC is underfunded but would be made whole by funny paper.

God help all the exchange traded funds that are nothing more than houses of derivative paper requiring a sound clearing system to have even an excuse for existing.

If the clearing system fails then you have nothing whatsoever. God help you if you are a farmer hedging your crop or livestock if you the farmer have nothing whatsoever due to a broken clearing house. You are insolvent regardless of the fact that your hedge may have been perfect for the needs of your operation.

Unless MF clients are made whole in every way the system is broken.

People did not realize then and some even now that the failure of Lehman broke the technical procedures (mechanism) for the functioning of the OTC derivative and for that reason broke the Western world’s financial system for which we are paying dearly today.

MF is a Lehman Brothers, but worse. OTC derivatives have always been a fraud but could have, before Lehman failed, been globally netted to practically zero.

The lack of faith in the clearing house system breaks the mechanism of the marketplace, even for legitimate transactions. This leaves gold in your possession as the asset of last resort. This is quietly driving the gold price towards Alf’s objective of $4500.

For your sake immediately take delivery of your gold and silver.
For your sake immediately take paper delivery of your gold and silver shares from those very few companies still willing to facilitate that kind of transaction.
For your sake immediately make your general securities positions "direct registration" as a second best method of protection the asset against failure of your clearing facility.

You all have clearing facility dependence even if you do not know it. Unless MF clients are made whole in every way, the system is broken.

This is no time to take any unnecessary risk.
This is no time to be lazy.

If you do not know how to do direct registration, get paper securities or take delivery of paper gold and silver, ask me.

Respectfully,
Jim
Eventually there will be an awakening, a balancing of the scales and a bill to be paid, and for that I hold gold - Jim Sinclair

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Boefke
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@ Rasta

Post by Boefke » 03 Dec 2011, 11:00

Your digits say nothing about your wealth :) .

What Jim describes here is the beginning of the evaporating trust in the system. I say beginning, as we are still nowhere compared to the last station.
We know from our helpful friend FOFOA what onsets Hyperinflation.......the confidence in a currency fading away.

In this way, it is crucial that afterwards the collapse of MF Global, the Fed has agreed to cut the swap-rates on $ leasing. All around the world confidence is evaporating.....now resulting in hoarding of currency's, and bonds (still, although it are mostly Belgian ;) ). When this goes further down the line, eventually people will start (trying) to hoard something else.

This is coming bottom-up.......

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Re: @ Rasta

Post by Rasta » 03 Dec 2011, 13:04

Boefke wrote:Your digits say nothing about your wealth :) .

What Jim describes here is the beginning of the evaporating trust in the system. I say beginning, as we are still nowhere compared to the last station.
We know from our helpful friend FOFOA what onsets Hyperinflation.......the confidence in a currency fading away.

In this way, it is crucial that afterwards the collapse of MF Global, the Fed has agreed to cut the swap-rates on $ leasing. All around the world confidence is evaporating.....now resulting in hoarding of currency's, and bonds (still, although it are mostly Belgian ;) ). When this goes further down the line, eventually people will start (trying) to hoard something else.

This is coming bottom-up.......
It is interesting to see how the MF-Global works out. Next week there is a congressional hearing, with the prime suspect, the former CEO of MF-Global.

The interesting question is, could it happen here in Europe? Anyway, if you have a margin account, you are toast, as the broker has the right to use the collateral as they see fit, that is part of the margin deal. But even if you do not have a margin account, and you have your securities at an independent custodian, if the broker is allowed to break the law, then you are toast. Unless, as Jim explains, the securities are registered in your name (that can only be done with paper certificates). I have searched for brokers/custodians who offer this feature in Europe, but have not found any yet.....
Eventually there will be an awakening, a balancing of the scales and a bill to be paid, and for that I hold gold - Jim Sinclair

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Re: Haystack December 2011

Post by Rasta » 04 Dec 2011, 09:32

Through Js Mineset:

Direct Registration FAQ

http://www.stocktransfer.com/index.cfm? ... gistration

What is the Direct Registration System?
After I make my decision on how I want to hold my security, what do I do?
How do I sell my security held in Direct Registration?
How do sell my security held in Street Name?
How do I sell my security held in my possession?
Can I place a limit order, market order or stop order?
What about my relationship with my broker if I use direct registration?
Will I get a certificate for additional stock distributions if I physically hold my shares?
What are the fees associated with direct registration?
If I opt for direct registration, what happens if I lose my statement of ownership?
What happens if my certificate is lost or stolen?
How are my securities protected if I chose street name ownership?
Eventually there will be an awakening, a balancing of the scales and a bill to be paid, and for that I hold gold - Jim Sinclair

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