Dear CIGAs,

In case you are interested in how SPIN is SPUN and a crowded short USD corner is run into cover…

Jim,

Jobless rate hits 9.4 percent in May; layoffs slow
Jobless rate jumps to 9.4 percent in May, even as layoffs slow to 345,000
–Jeannine Aversa, AP Economics Writer

Click here to read the article…

"But the pace of layoffs eased, with employers cutting 345,000 jobs, the fewest since September."

The equity traders jumped all over this tidbit. Did I hear someone scream "Green shoot?" Listen, same data (crap), different month. The birth/death model continues to distort the payroll numbers by showing aggressive job creation from non-traditional job sources. This extend of this distortion is revealed in the following graph.

Over 6000 jobs have been lost since 2009.01. Yet, despite this job loss from tradition employers, the birth/death model suggests that 1341 non-traditional jobs have been created over the same period. This is 3 times the average birth/death model contribution since 2004. Call me skeptical, but the current run rate of 1341 seems not only distortional but a tad coincidental.

For further review of how the birth/death model creates (but rarely destroys jobs) see

http://www.bls.gov/web/cesbd.htm

Regards,
CIGA Eric

Jim Sinclair’s Commentary

Don’t let the goons get you down. Gold is going to $1650 before moving on to Alf’s numbers.

The US dollar will not survive the winter intact.

"In life there are always undesirable things. Perhaps we can feel better about ourselves if we realize just how good we have it.

I hope this message will bring fresh new ways of thinking to everyone and that everyone can appreciate and be thankful for each beautiful day that follows. Faith is the continual demonstration of the Strength of Life."