In The News Today

Posted at 6:43 PM (CST) by & filed under In The News.

Note To Readers:

An article appeared on Kitco saying that I have predicted $17,000 for gold in 2012.

That writer is clearly smoking something funny.


Jim Sinclair’s Commentary

Here is your perfect example of the Ski Jump recovery.

The Self-Inflicted Insanity of American Unemployment

News that the unemployment rate has fallen to a "mere" 9.5% seems to suggest an improvement in our dire economic prospects. The reality, however, is far grimmer, as the latest US Bureau of Labor statistics indicate. On balance, it would seem that the apparent "ignition" to the economy achieved in March and April through expanding employment, income, spending and production has somehow "sputtered" in May and June. This is indeed disturbing, since such sustained "ignition" is now necessary since fiscal policy is about to go into reverse.

There are many costs associated with high unemployment, both economic and social. They include not only daily income losses, which are catastrophic for most Americans, but also increased crime rates, family breakdown, increased incidence of mental and physical health disorders, increased alcohol and substance abuse and a generalized misery (See Bill Mitchell).

Yet despite the obvious pathologies created by long-term unemployment, bad policy continues to drive the Obama administration to perpetuate these trends. Worse, with polls indicating rising discontent with Democrat incumbents in the House and Senate, the President’s political advisors appear to be recommending that the President ignore the advice of his economic team and press forward with deficit reduction ahead of job creation spending.


Jim Sinclair’s Commentary

Actually, in Mandarin that could be a threat.

China Says It Won’t Use U.S. Debt as Threat

BEIJING—China’s foreign-exchange agency sought to ease concerns about how it uses its huge currency reserves, saying it operates on market principles and would never wield its holdings of U.S. government debt as a threat.

The statement Wednesday by the State Administration of Foreign Exchange was the latest in a series of moves by the agency aimed at addressing concerns about its influence. Presented in question-and-answer form, the statement, posted on the agency’s website, rebutted what it portrayed as misconceptions about its management of China’s $2.4 trillion in foreign-exchange reserves, the world’s largest.

The statement rejected the notion posited by some …