My Dear Extended Family,

In my life I have seen some really dumb things, but this may take the cake: "Reduce the Capital Requirements for the Banking Institutions." Capital requirements are the only control the mad, mad amoral money industry has.

This suggestion for a so called solution would let financial institutions have commitments with no demand to carry the required capital to back them. Isn't that sort of how we got here, through the creation of too many commitments in items too large and structured by math rather than street smarts, clearly destined at some time NOT TO FUNCTION? I have warned of this outcome since 2000. See the outline of my career in Forbes December 2001.

THIS IS IT!

There is NO PRACTICAL SOLUTION to this problem outside of an immediate recovery in real estate conditions representing the average prices that existed in 2006. The chance of that is zero.

THIS IS IT! My vision for 2011 is ugly beyond your wildest imagination. Are your prepared?

1. Do you have paper certificates for your shares?
2. Are you still significantly in involved with Internet financial entities?
3. Are you in debt beyond your fully paid physical gold?
4. Are you in an ETF in precious metals where you cannot take delivery of paper certificates?
5. Do you have significant funds in time deposits at your local bank?
6. Do you have Federal T Bills in the non- dollar Cando and Swissy?
7. Have you seen to it that your family is in a strong position?
8. Have you protected your company treasury?
9. Have you, to the best of yours practical ability, eliminated agents between you and your assets?
10. Have you taken delivery of your coins from your coin dealer?
11. Have you withdrawn your cash balance from all banks and brokers? Do not forget Citi restrictions on the amounts of outgoing bank wire money transfers.
12. Are you charting your liquid net worth on a weekly basis?
13. Have you studied the simple TA I have offered you? When the world wallows in complexity the only defense you have is to return to simplicity.
14. Have you seen the DVD, "The Secret"? The greatest wealth you can have is self confidence, which is confidence in the SELF.

Last and most important, do you have insurance against the failure of the system to function? Gold is that insurance policy you pray you won’t have to collect on, but you will. Gold is going to $1050 and onward to $1650.

Regards,
Jim

Call to relax Basel banking rules
By Edmund Conway, Economics Editor
Last Updated: 1:13am GMT 16/12/2007

"It will have massive consequences for the economy as a whole," he said. "It will make 1929 look like a walk in the park."

The Government must suspend a set of key banking regulations at the