Jim Sinclair’s Commentary
Now let’s look at 2010.
CIT is in trouble, in the least, where its ability to service their clients at comfortable costs and in comfortable amounts is concerned.
CIT is to the general economy of Middle America what Lehman was to the financial world. There are plans for a $7500 government Cash for Volts when this GM model is introduced.
The general economy is far from healthy. Once Pandora’s Box of QE was opened it COULD NOT be closed.
There is no V, W or U recovery now. The stock market is a 1932 type rally drawn higher by the trillions of dollars injected into the world monetary system and possibly some Weimar type expectations.
2010 is going to a be a repeat of 2009 and 2011 is going to set higher records.
That is what the dollar told you today. That is what Crude told you today. That is what Gold told you today.
U.S. deficit biggest since 1945
Obama administration closes the books on fiscal 2009: Falling revenue plus soaring spending leads to a $1.42 trillion deficit.
By Jeanne Sahadi, CNNMoney.com senior writer
Last Updated: October 16, 2009: 5:04 PM ET
NEW YORK (CNNMoney.com) — It’s officially official.
The Obama administration on Friday said the government ran a $1.42 trillion deficit in fiscal year 2009.
That made it the worst year on record since World War II, according to data from the Treasury and the White House Office of Management and Budget.
Tax receipts for the year fell 16.6% overall, while spending soared 18.2% compared to fiscal year 2008. The causes: rising unemployment, the economic slowdown and the extraordinary measures taken by lawmakers to stem the economic meltdown that hit in fall 2008.
Consequently, the annual deficit rose 212% to the record dollar amount of $1.42 trillion, from $455 billion a year earlier.
As a share of the economy, the deficit accounted for 10% of gross domestic product, up from 3.2% in 2008. As breath-taking as that may be, it’s still not in the same stratosphere as the 1945 deficit, which hit 21% of GDP.
Jim Sinclair’s Commentary
I will be the first to tell you that I am WRONG.
Gold is going to $1224 and $1650, but it is not stopping there. From $1650 the price of gold will go to Alf’s number.
Both Alf and I hold the belief that gold is not going to experience a 1980 type fall.
The dollar will not recover, nor will gold give up its gains.
Tice: Gold Could Pass $3,000
Friday, October 16, 2009 9:44 AM
By: Dan Weil
David Tice, famous for his bearish stock trades, is bullish on a different asset: gold.
The precious metal recently jumped to a record high above $1,060, and Tice, Federated Investors chief portfolio strategist for bear markets, sees further gains ahead.
"We certainly could have a pullback at some point," he told Yahoo! News.
"However, we believe this rally in gold is going to on for a long time."
How far can it go?
“We don’t think it will end until we get to $2,500, $3,000 or so. And gold could go beyond that,” he says.
That’s because of inflationary economic policy, Tice maintains.
Jim Sinclair’s Commentary
Somebody at CNBC will go to hell for permitting this interview.
Recession Will Be ‘Full-Blown Depression’: Strategist
Published: Friday, 16 Oct 2009 | 8:03 AM ET
This global recession will turn into a "full-blown depression," Nicu Harajchi, CEO of N1 Asset Management, said Friday, adding that global stimulus hasn’t come down to Main Street.
Wall Street is making money, while consumers aren’t, Harajchi told CNBC.
"We have seen the G20 coming out with cross border capital injections of $5 trillion this year… But a lot of this money hasn’t really come down to Main Street," he said.
"When it comes down to corporate America, corporate Europe or even in Asia, in Japan, we are not seeing Main Street making any money," he said. "Consumers are losing their jobs. They are struggling with their mortgages, with their credit. And we are just seeing this continuing."
The $5 trillion injection is "monetary expansion," according to Harajchi. "At some point, which we believe to be 2010/11, some of the central banks are going to recall some of that money and that will turn from monetary expansion to monetary contraction."
