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  • sharpie3444 sharpie3444 Mar 21, 2014 3:27 PM Flag

    Jim Sinclair

    --Jim Sinclair




    My Dear Extended Family,



    Yesterday, Thursday the 20th, the Obama Administration stepped up the sanctions against Russia over Crimea. The sanctions still focus on selected banks and targets in terms of people.



    This is a very dangerous "tit for tat" approach. An eye for an eye only ends up with a blind world.



    The dollar reacted because that market (dollar) knows Russia has a nuclear economic weapon it can let loose on the West. The US dollar depends on its universal use in settling energy contracts.



    This is known as the Petro Dollar and is the true dollar standard. When Nixon came off the gold standard for the dollar he adopted the energy standard for the dollar. Should Russia move away from utilization of the US dollar as the standard, the US dollar will crash into the .71 to .72 level on the USDX.



    Western Sanctions against Russia is a game of "Financial Chicken" that the US dollar cannot win.



    Sincerely,
    Jim



    Visa, MasterCard Freeze Cards at Sanctioned Russian Banks



    MOSCOW, March 21 (RIA Novosti) - US-based Visa Inc. and MasterCard Inc. have stopped processing payments by cardholders at Russian banks targeted by the United States for financial sanctions on Thursday, a number of Russian banks said Friday.



    The news signaled the first impact on ordinary Russian citizens by a series of Western sanctions against Russia over the ongoing situation in Ukraine, the greatest geopolitical showdown between Russia and the West since the end of the Cold War.

    Earlier sanctions had been restricted to targeting high-level officials.



    Several banks reported that customer cards were being declined for payment and that they had received no advance notification of the changes. Customer deposits remained unaffected.

    Visa confirmed Friday that it had blocked cards issued by four Russian banks for use on its payment network for online or retail purchases.



    Visa said the list of the banks facing sanctions announced by the US Treasury on Thursday includes Rossiya Bank, SMP Bank, Sobinbank and Investcapitalbank, the latter two being part of Rossiya Bank.



    "The management of Rossiya Bank understands the difficulties experienced by clients in this situation, and assures them that everything possible is being done to help," Rossiya Bank said in a statement on its website.



    The bank added that customers could still withdraw cash from the bank's ATMs without difficulties, as well as those owned by partner banks.



    Sobinbank said that its call centers had been swamped by customers who were abroad and suddenly found their cards were not working.

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    • The markets are paying too little attention to the Ukrainian crises....Obama is filling out his brackets. What an idiot...

    • Sure a change of trend of UUP the last few days, doubt it last long, but might make it a week or so.

      • 1 Reply to sharpie3444
      • --Jim Sinclair




        My Dear Extended Family,



        Chair Yellen has placed herself between the rock of recession and the hard place of playing the hawk. A global recession cannot produce an isolated USA, but rather underscore the heart of the recent US economic figures as a reflection of an insular American economy following the world back into recession, not entirely extremely cold weather related. You might note that China has not had as much of a weather problem yet and is experiencing degrees of contraction in the spectacular rate of growth previously present.



        The idea that stimulation, even if only in form but not reality, can be withdrawn without draconian economic results is simply false. Chair Yellen is truly dedicated to full employment and is going to go into shock over the next few short months at the divergence between her economic modeling, the behavioral economic projections and the degree of economic contraction in the US. She will revert to her long standing dovish viewpoint of the mandate of the Federal Reserve and move this hyper stimulation (4 trillion) into a higher gear than before.



        Both the stock market and the gold market will reflect this in substantively higher prices. One should never forget that the wheels of the equity markets and gold is liquidity, which represents debt presently and nothing more.



        I am presently 13 hours ahead of you in Hong Kong looking out of my window in contemplation of mainland China where nothing has changed. China may look like a free enterprise exercise, but it is far from it. This is a Maoist country that will handle a contraction of its economic activity in a much different way than the hoards of Ivy League analysts populating Wall Street, the City and the Bahnhofstrasse believe. There will be a unified pulling together of the economic function to prevent the dire circumstances the uninformed love to paint China with and have been for the better part of a generation now.



        The only asset to survive and appreciate in the period of the great leveling now in progress in the West is Gold. That is understood at a level of POLICY here in the East. Gold is not being bought here in the physical market as an investment decision but rather as a policy decision. It is clearly understood that gold is for saving and not for speculation as the eventual failure of the paper gold market will prove.



        As we move out of the Great Leveling 2016 into the Great Reset of 2020 gold will have preserved the buying power of those courageous enough to hold and when possible add to their positions. Companies holding gold free of the tentacles of the West will prosper accordingly.



        The developments in Crimea are a well timed stratagem to prevent the adoption of the TITT Treaty that no one wants which has the ability to turn Euroland into a dollar dependent trading area. The Baroness and Mr. O'Sullivan have more to do with ongoing events in the Crimea than the organized and false demonstrations are blamed for.



        The US dollar knows this and can be seen to have lost its snap back mojo from below the .80 level of the USDX to the mid .80s. It is even struggling today as the stratagem to bring down the Euro has been trumped by the ongoing move of Putin.



        Stay the course in gold and you will benefit mightily.



        Sincerely,
        Jim

 
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