Dear CIGAs,
I finally got tired of asking Victoria and Mario for a tow off the lake.
If the main impeller quit, the electric engine should get me home. It would also be suitable for a quiet Saturday afternoon.
Jim Sinclair’s Commentary
For once relax. Gold is doing well. The rumor that Prechter had become a gold bull is false.
Jim Sinclair’s Commentary
One by one the major currencies will get the rating agencies, the IMF, media and the OTC CDS’s venting their spleen on them.
Trillions are being made on this organized and strategized play while the social order falls apart as in Spain and Greece.
Fitch warns Britain about deficit
Fitch Ratings agency warned Tuesday that Britain faces a “formidable” fiscal challenge and must cut its budget deficit
faster to maintain its top credit rating.
In a special report ahead of an emergency budget planned by the new coalition government, Fitch noted that the rise in public debt ratios since 2008 is faster than any other AAA-rated country.
It added that the primary deficit is almost twice as large as during previous economic downturns in the 1970s and early 1990s.
Britain’s budget deficit is forecast to reach 10.4 per cent of gross domestic product this year, while debt as a percentage of GDP was 62 per cent in 2009/10.
“The scale of the United Kingdom’s fiscal challenge is formidable and warrants a strong medium term consolidation strategy,” the report said
Jim Sinclair’s Commentary
Consistency is something that the CDS weapons of mass financial destruction can count on.
Spanish public sector on strike against austerity plan
Tuesday, 8 June 2010 13:29 UK
Spanish public sector workers are holding a strike in protest against an average 5% cut in pay that comes into effect this month.
The cuts are part of a government austerity package aimed at reducing the country’s budget deficit, swollen by almost two years of recession.
Hundreds of protesters gathered in front of Madrid’s finance ministry blowing horns and chanting slogans.
Spanish unions said 75-80% of public sector workers had joined the strike.
The labour ministry, however, put the figure at 16%.
"This government is totally inept," said protester Alfredo Barrero Sanchez, 55.
He accused the government of ignoring the crisis until it was too late.
"In the end, look what has happened to this country," he told Associated Press news agency.
Spain has suffered one of the toughest recessions in the EU, and has its highest unemployment rate. It recently had its credit rating downgraded, amid fears it could follow Greece into a debt crisis.
Jim Sinclair’s Commentary
This is as close to oops as you will ever hear from the Fed.
I know for certainty that gold will trade at $1650 on or before Jan 14th, 2011, but Armstrong thinks higher and before the end of June 2011.
Bernanke: Recovery continues but ‘won’t feel terrific’
By Jennifer Liberto, senior writerJune 8, 2010: 9:48 AM ET
WASHINGTON (CNNMoney.com) — Federal Reserve Chairman Ben Bernanke says he expects a continuing economic recovery – "but it won’t feel terrific."
In an interview at a forum late Monday in Washington, Bernanke dodged a question about whether he fears a double-dip recession, saying "nobody knows with any certainty."
"But there seems to be a good bit of momentum in consumer spending and investment, so my best guess is that we’ll have a continued recovery," Bernanke told veteran TV journalist Sam Donaldson. "The reason it won’t feel terrific is because it’s not going to be fast enough to put back 8 million people who lost their jobs within a few years. It’s going to take a while."
He warned the unemployment rate will remain high "for a while," explaining, "that means that a lot of people are going to be under financial stress."
In an unusually wide-ranging interview with Donaldson at the Woodrow Wilson International Center for Scholars in Washington, the Fed chairman spoke with a little more candor than usual, Bernanke said he couldn’t predict when the Fed would raise interest rates next. But he said it depends on the state of the economy, unemployment rates and inflation trends.
Jim Sinclair’s Commentary
FASB (Financial Accounting Standard Board), the gatekeepers of honest and transparent auditing, delivered the Equity Rally in April of 2009 to you by blessing total fabrication in accounting and will deliver the second phase of the economic financial disaster.
BS is not going to float on artificial OTC derivative assets later in 2010 and 2011.
Banks in ‘Downward Spiral’ Buying Capital in CDOs (Update1)
By Yalman Onaran and Jody Shenn
June 8 (Bloomberg) — U.S. banks are fighting to preserve the use of securities that help them appear better capitalized, even as their investments in each others’ notes perpetuate what one regulator calls a “downward spiral” of losses.
The cross-ownership, largely unnoticed by bank supervisors who generally discourage the practice, was made possible by a Wall Street innovation like the ones that allowed subprime mortgages to flourish. Small lenders, such as Riverside National Bank of Florida, were able to sell trust-preferred securities, known as TruPS, because investment bankers packaged them with those issued by dozens of other financial institutions.
Riverside, which started in a trailer in 1982, bought collateralized debt obligations made up of TruPS as it grew to 65 branches and $4.8 billion assets. When real estate soured and lenders racked up loan losses, Riverside and about 400 of its peers suspended interest payments on their TruPS, causing the CDOs to default or lose value and inflicting more harm on an industry suffering from the worst economy since the 1930s.
“The industry was self-financing, using loopholes in rules,” said Joseph Mason, a professor of finance at Louisiana State University in Baton Rouge. “Regulators weren’t keeping track of ownership of the capital, which became more difficult to do with the use of CDOs. The losses fed on each other.”
Jim Sinclair’s Commentary
China hails G-overnment Sachs.
Now They Hate Goldman In China, Too
Joe Weisenthal | Jun. 7, 2010, 5:49 AM
In what’s perhaps Goldman Sachs’ (GS) biggest "growth" market, the company is already losing the PR game.
“Many people believe Goldman Sachs, which goes around the Chinese market slurping gold and sucking silver, may have, using all kinds of deals, created even bigger losses for Chinese companies and investors than it did with its fraudulent actions in the US,” read the opening lines of an article in the China Youth Daily, a state-owned daily newspaper, last week.
The article was widely distributed through commercial news portals and the websites of government mouthpiece Xinhua News and the People’s Daily, the Communist Party publication.
So poetic! Here they’re accused of conflicts of interest. There it’s slurping gold and sucking silver!
