Santa Out In Front

Tue, Jan 31, 2012 - 9:01am

There has been a great discussion in the previous thread regarding the dire warning and interview that Santa gave to Ellis Martin yesterday. With apologies to those actively participating in it, I felt that it must be moved to its own thread.

Lots of folks come here simply to read the main page. As we all know, that's a big mistake. The true value of this site is in the wise and learned comments that are shared with each thread. The discussion regarding Santa is a perfect example. If you missed it, here is what all the hubbub is about.

First, on his site, Santa posted this last evening:

January 30, 2012, at 7:37 pm
by Jim Sinclai
My Dear Friends,
I was interviewed today concerning the most powerful body in the financial world that now holds in its hands the near future of all markets, from currencies to commodities, based on a single edict to be given.
The interview is being processed and should be posted here later this evening.
This organization supersedes all governments and central banks today in terms of the financial power they edict. This organization can have a greater impact on your pocketbook than the FASB did when they killed "true value" accounting.
This body is made up of the key players of the five largest banks in the USA and other countries. This body by their actions this week will guarantee QE to infinity.
This is relevant to all your assets, yes all. If you have the time listen to it please. If you don’t have the time listen to it please. If you don’t listen to it do not blame me when all hell breaks loose six months from now.
Not one word about this body was on the airwaves today, yet this group by a simple decision rules the financial plant. They will be making this edict in just a few days. They have to do it again this year. It is then that you know what will hit the fan.
I feel this is it for tonight. I do not want to write another word and detract from the revelations you will hear.
Your financial future, even if you have never heard of them, is in this organization’s hands. Check in later for the interview. If you don’t check in your finances might just check out.
Please remember you have been informed of this impending edict as a service to the community.

As you might imagine, this got everybody's attention. We all sat around for an hour or two, waiting for the interview and then it was finally posted to the Ellis Martin YouTube channel. I will second Santa's sentiment...please take the time to listen to this today:

Breaking News Ellis Martin Report with Jim Sinclair

As we were debating what this all meant, I offered what I still think is a reasonably good explanation:

If I understand this right, here is what Santa is saying:

  • In 2008, AIG had sold CDS on CDOs. CDOs defaulted and AIG had to pay. AIG went broke. The counterparties to the CDS were GS, JPM et al and had to be made whole on their losses that they thought were insured by AIG.
  • US Govt funnels TARP cash thru AIG to GS, JPM et al to cover losses
  • IN 2012, Greece is about to default, just like the CDOs of 2008.
  • ISDA (run by Big 5 banks) declares that 70% haircut on Greek bonds is not a default.
  • Therefore, Big 5 do not have to pay off on CDOs bought by Greek bondholders. Big 5 off the hook.
  • Greek bondholders who thought they had principal insurance are now screwed and left holding the bag.
  • Greek bondholders (big Euro banks, big Euro govts, big hedge funds) will now be insolvent.
  • Greek bondholders will need massive capital injection.
  • Short term euro negative/dollar positive.
  • Regardless, lots and lots of money printing to save Greek bondholders.

Also, a significant part of Santa's warning is the timing. He seems to be saying that a decision regarding whether or not this is a "default" will be announced this week. Clearly, a market coming to terms with a massive, new money printing scheme to cover the bondholders will be a market that assigns the precious metals a much higher value in the weeks ahead. We will have to watch this very closely.

OK, have at it. Listen to the interview and discuss the implications in the comments. Learn from each other. Help each other. Prepare accordingly. TF

p.s. I believe that gold is popping this morning based upon this news:

Apparently, some are surprised that El Commandante was able to pull this off. At any rate, 160 tonnes in Venezuela means that as much as 16,000 tonnes has been removed from the LBMA/Comex paper regime. Ponder that one for a while.

About the Author

turd [at] tfmetalsreport [dot] com ()


Jan 31, 2012 - 9:02am



Jan 31, 2012 - 9:04am

question from my inbox

Can someone help this guy?

"Hi Turd, I have a quick question about buying gold and silver in Canada. I'm completely new to this and I was wondering what you would recommend as the best method here in Canada? I was thinking coins, but from where is the best place to purchase? Thanks for your time Turd, love your website!"

Dr G
Jan 31, 2012 - 9:04am

New thread is a great idea.

New thread is a great idea. Santa frontrunning the news again. Especially grateful to Turd and everybody else for their analysis of the situation.

Also note that the POSX failed to rally yesterday and is falling again this morning.

Jan 31, 2012 - 9:06am

News you can use

Good to hear that Chavez made his withdrawal without assassination or boating accidents. Any clue about how much bullion is left in the European vaults?

Jan 31, 2012 - 9:07am

I believe there may be a

I believe there may be a couple of 10 oz bars and a handful of coins.

Jan 31, 2012 - 9:15am


Turd and Turdites...

Did anyone go to bed last night? I have such an information hangover...


Regarding Canadian bullion dealers...



paulindoon TF
Jan 31, 2012 - 9:18am

PM purchases in Canada

Funny for just yesterday I sent out an email to some select friends of mine with this info. So:

In my book there are three easy avenues one can implement to protect (some) of yr family's wealth going forward: 1) Buy and physically hold Silver and for God's sake, DO NOT STORE IT IN A BANK VAULT, SAFETY DEPOSIT BOX, OR SOME BULLION VAULT. Take possession of it, plain & simple. Some Canadian sources for internet buying possibilities that I have used & can recommend. Set up internet acct then lovk price when PMs order is placed via internet. Payment via credit card (First Majestic & Great Panther) or Wire Transfer etc: Silver price comparator: 2) Owning shares of upcomer AGQ with a NI upgrade to Ag resources (now that phase 4 drilling on San Jose vein is completed)expected to be released Feb/March. 3) Most conservative method is to own shares of Eric Sprott Silver Trust PSLV trading on TSX. From article in (1): I believe PSLV is a screaming buy at these premium levels. In addition to silver going up, I believe the premium will slowly climb back up to median levels, and the tax advantage cannot be ignored. For more on the PSLV premium check out my article, "Why Premium Concerns for PSLV are Overblown".] I forgot to mention that IF you are thinking of buying some physical Ag, when doing the price comparisson, please make sure to look at the delivery cost. Some suppliers include it while others do not (which of course increases yr purchase cost). In my experience, if you want to buy .999 Pure Ag as bullion, then First majextic is best - delivery cxharge of under 40. If buying coins, SilverGoldbulls out of Alberta is best although Sprott is almost as good. I have NOT made any purchases from USA suppliers. Oh if you want to try a stock there's AGQ (on Vancouver), a pure silver play with an operating mine in Mexico. I do believe the shareprice is about to take off. My Target well over $1.00 and dare I say several $'s in maybe a year?? But what do I know. Analytical
Jan 31, 2012 - 9:19am


Netherlands has 10% of their gold in a dutch vault, the rest is in the UK and US

almost a breakout now, silver is looking good man, dan norcini says if 35 breaks we may shoot to 40

Jan 31, 2012 - 9:19am

Santa's gift for the dramatic

Having listened to the audio last night, I think Turd's summation nails the gist of Santa's message.

Some here and elsewhere discount Santa for his penchant for being extremely dramatic. And he can seem that way at first. But his dramatic, and often dire pronouncements, have a way of coming into common acceptance over time. This strikes me as another one of those instances where what now seems a little over the top will prove to be mainstream in the not-too-distant future.

Santa was talking about derivatives and their dangers well before most, if not all.

Jan 31, 2012 - 9:19am

Thurd again? Thanks TF

Thurd again? Thanks TF

edit: Uh- How do you spell seven in Spanish? Siete?

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