Notes from Sinclair's latest Q & A Session 5 1/2 hours

[mamboni]

Santa's London Q&A notes

Submitted by RaRaRasputin on June 1, 2013 - 5:50pm.

OK here goes - this is going to be a long one so apologies. Obviously these are my notes and interpretations and therefore might not be 100% accurate. Hopefully another Turdite who was there can point out any glaring misunderstandings on my part. There was much discussion about TRX but not being mining share technically savvy didn't take many notes so they are a bit sketchy!

Santa started out by outlining where we are now and stated that the reason he was travelling and holding the sessions was that he wanted to get the word out to as many people as possible as we are now sitting on the front step of the end game. Don’t speculate about the future – the future is here.

He said that this point had been crossed with Cyprus and the bringing into awareness of the ‘bail in’ legislation that existed in case law and had done so since 1850. He had the White Paper between the FDIC & BofE with him citing that deposits are unsecured loans and public are lenders to banking institutions. Lagarde and Schauble had let the cat out of the bag early when it was probably being saved for a bigger banking crisis which is why Monti and Bernanke are exiting stage left.

He said that the transition from paper gold to physical gold was underway and a reflection of this was the fact that a seat on the COMEX used to cost $500K and is now $100K which represented its declining power and usefulness as a price discovery mechanism.

He said that the CB’s could not print enough money to cover the OTC derivative market which between 1991 and 2008 grew to $1.44 Quadrillion. The BIS had made adjustments to the way that they were recorded using special performance contracts allowing tax adjustments so that the figure was now only $700 trillion on the bottom line of bank balance sheets and that they had not timed out but been extended. There has been no mark to market since 2009 and we are at the end of the can kicking down the road stage. Look at Zimbabwe equity market rally - that is all we are seeing in the FTSE/DJA - inflationary take off. Either market pressure or restructure of the system is necessary and there will be massive losses.

It could have happened last Tuesday when the CTFC regulation about all OTC derivatives was due to pass.
There will be novation of contract like Hunt Bro’s. Either the COMEX will go 100% margin or no physical delivery. Within next 30-90 days the amount of physical will continue to decline the COMEX will panic and that will signal the COMEX expiry. Physical COMEX platform exists but is not used. COT like LIBOR rates – not factual.

How can you have a physical bull market but a paper bear market? Indicates transition and 30-90 days’ time change to future’s exchange will affect price discovery. Rise in gold price will start again on Tuesday. Doubling of $1900 and $2500 outrageously low price. $3600 will happen.

Presidential order passed allowing seizure of US pension funds in emergency.

2015-2017 will be very uncomfortable. Collapse closer to 2015 than 2017.

2020 new system – virtual currency with a necklace of gold around it (voluntary relationship) based on basket of currencies. Sees dollar turned into Euro.

Freegold premise is sound

His talk is about seeing us through the transition without being impacted by the systemic changes:

Pay down all debt
Best not to have any debt but if you do make sure you have enough cash outside of the system to pay all your bills, mortgage etc for 3-6 months.

If have allocated gold in storage facility i.e. Goldmoney/BV – ask to take delivery of small amount to check the soundness of the organisation. Sprott PSLV – Santa owns and trusts as Sprott good guy.

Pension – take out of system. UK: transfer into SIPP and then can allocate to gold via Goldmoney/BV or mining shares.

Shares – get DTC, have certificates out of system so that your shares cannot be rehypothecated.

Banking system – diversify outside of Western banking system. He is moving Tanzanian accounts from Canada to Singapore (and then to China).

OTC derivatives written off will cause bankruptcies. Not loans going broke with underlying assets but financial products with no underlying asset base. Will unwind and leave massive losses. All banks will collapse together some will survive and some will not. Currency controls will be put in place around Western banking system. Complete shut down of system for a week.

Tanzanian Royalty Exploration: increase in activity in next 6 months. Has worked with Tanzanian govt so they have nationalized themselves ahead of time. Hopes that will reach share price of $44.00

Silver – monetary vs commercial/industrial function. Will rise along with gold but not as high as people think. But recognises that as price of gold accelerates out of many people’s reach will be poor man’s gold.

Gold = savings (1/3 of liquid net worth)
Silver = transactional

Confiscation in UK. Paranoia. Confiscation suggests punishment which may be levied through increase in CGT or windfall taxation but not confiscation.

To the man who didn’t understand why he has gold and when he should sell – need will overcome greed.
Caribbean banking system is next to go – particularly Caymen Islands (RaRa note: interesting - JPM??)

Bitcoin – important message that virtual currency is possible but reaction of govt showed their feelings about it if not controlled by them.

Deflation vs inflation false argument. Deflation = failure of debt. Inflation = increase in money outstanding. Velocity will increase as confidence fails. Short burst of deflation then inflation?

Tungsten – felt that too much was being made of this issue and not worthwhile for fraudsters in bars less than 400oz

Interest rates – bond market wobbles in Japan and US testing of the system. Bernanke third strand of helicopter speech discussed pinning of UST bond yields 2-2.5%. Thinks this will happen and that what is happening now is a test. Bond vigilantes vs CB’s. Sharks eating each other. Bond market collapse then skyrocketing interest rates like the 1980’s
How can a busted sovereign be ‘bailed in’ or ‘bailed out’ = print fiat paper. Then the system rolls over and we have the reset with universal applause from Asia. Ascension of China. Euro/Russia/China (Euro & BRICS). Oz a safer bet than many countries due to closeness to China and will be first to benefit.

Martin Armstrong – created derivatives and picking on Jim now as Jim helped him and knows him.

Phew - off for a well earned glass of vino!


RaRa


http://www.tfmetalsreport.com/blog/4...ss-turd?page=5

[Hypertiger]

Peak Gold will lead to regulation of demand so that only valid demand for resources will be supplied. Asia is not ruling anything. The entire system is global and everyone in the global system is in debt up to their eyeballs. The continuous compounding interest equation at the core of the banking system is the master and everyone on Earth is a slave.

Supply the demand of the master for yield or the master will whip all the slaves until they supply the demand....To death if you refuse until that point is reached and it will whip your rotting corpses for fun after that.

This "drama" that has you all excited will turn into a nightmare beyond your current abilities to fathom if the controlled collapse in progress turns into an uncontrolled collapse.

[gunDriller]

Tungsten – felt that too much was being made of this issue and not worthwhile for fraudsters in bars less than 400oz

very informative. i disagree about Tungsten imitation gold.

people are going to great lengths to counterfeit f'ing silver ounces, and for each one they are getting about 1/2 the price of a gram of gold.


why on Earth would someone with a machine shop go to that much trouble, and ignore tungsten-based counterfeiting of gold ?

i say, no way.

i wouldn't be surprised to see non-destructive testing systems targeted towards precious metal owners become a decent size industry.