Jim Sinclair’s Commentary
JB Slear says "And then there were four."
Bank Closing Information – August 20, 2010
These links contain useful information for the customers and vendors of these closed banks.
ShoreBank, Chicago, IL
Imperial Savings & Loan Association, Martinsville , VA
Independent National Bank, Ocala, FL
Community National Bank at Bartow, Bartow, FL
Jim Sinclair’s Commentary
Facing off with your bankers does carry some risk. The loss on the now hedged Chinese dollar bond position is nil to them but their sales could have a nuclear impact on the West.
Would you hold the debt of someone that might consider you an enemy? Who thinks these things up in the Administration?
U.S. Sounds Alarm at China’s Military Buildup
By ADAM ENTOUS
WASHINGTON—The Pentagon voiced alarm over China’s military buildup, saying it was expanding its advantage over Taiwan and investing heavily in ballistic and cruise missile capabilities that could one day pose a challenge to U.S. dominance in the western Pacific.
In its annual report to Congress on Chinese military capabilities, the Pentagon also cited China’s advances in electronic warfare. The U.S. government has been the target of cyber intrusions the report says appear to have originated in China and aimed to steal military secrets. "These intrusions focused on exfiltrating information, some of which could be of strategic or military utility," the report said.
Though their two countries are increasingly interlinked economically, ties between the U.S. military and the People’s Liberation Army of China have deteriorated since January, when the Obama administration notified Congress of a plan to sell Taiwan up to $6.4 billion in arms.
Defense Secretary Robert Gates has appealed to the Chinese to re-engage to reduce the risk of military miscommunications. But U.S. officials say they have seen few signs of a thaw.
Washington has long voiced alarm over China’s military buildup opposite Taiwan. In this year’s report, which was delivered months behind schedule, the Pentagon said China’s military edge over Taiwan was continuing to "shift in the mainland’s favor," the main argument used by the Obama administration in approving the arms deal.
Jim Sinclair’s Commentary
Now make fun of my chicken house and the six little egg suppliers in Sharon, CT.
Egg Recall Prompts Efforts to Reassure Customers
AUGUST 20, 2010
By TIMOTHY W. MARTIN
Food retailers and manufacturers are rushing to tell consumers that their products are safe amid a nationwide recall of 380 million eggs that may be infected with salmonella bacteria.
The Food and Drug Administration on Thursday said it hadn’t yet found clear evidence of contamination, although heavy rainfall near the Iowa company that produced the eggs may have raised the risk of salmonella infestation from rodents.
Wright County Egg Co. of Galt, Iowa, on Wednesday expanded the recall from 228 million eggs recalled last week. The company is owned by Jack DeCoster, whose companies in the past have been fined by federal regulators for allegedly hiring illegal immigrants and for other alleged workplace violations.
A company spokeswoman said Mr. DeCoster wasn’t available for an interview. She declined to comment beyond a statement saying that the recall was a voluntary measure and that the company continued to fully cooperate with the FDA.
The recalled eggs could be linked with hundreds of illnesses in at least 10 states, and probably many more, according to the Centers for Disease Control and Prevention. Those numbers could grow as more data become available, U.S. health officials said.
Jim Sinclair’s Commentary
The IPO for GM is extremely political, therefore it should succeed. However, it is a MOPE special on that success.
Car Czar: Billions lost with GM is ‘best stimulus around’
By Nina Easton
August 19, 2010: 8:42 AM ET
FORTUNE — General Motors, fresh off two profitable quarters, is planning a public offering expected to raise as much as $16 billion. Does this mean election-year vindication for President Obama’s much-maligned decision to take control of the Detroit automaker?
Maybe not. Watch for a round of late-summer political thunder as lawmakers latch onto the fact that despite this first step toward reducing a 61% government stake in the automaker, taxpayers still stand to lose billions on the bailout. "We never said we were going to be made whole," Steven Rattner, the investment banker who led the administration’s restructure of GM and Chrysler, tells Fortune. "I think the administration would rather lose money and get out sooner."
Jim Sinclair’s Commentary
Let not get deflected by MOPE. It is not the selling of US Treasuries by China that is the problem. It is the momentum collapse of that buying that harbors an ill motive to the bond safety bubble.
Gold is your only insurance and that message is very near to the delivery point via the long bond market. You run the near and intermediate bond rates of return to negative interest rates, and you put the pin in the Bond Bubble. That is the final Pillar of Gold at $1650 and beyond.
It Looks Like U.S. Government Bonds Aren’t Supported By China Anymore
Vincent Fernando, CFA | Aug. 20, 2010, 3:45 AM
Earlier this week we highlighted how cut its holdings of U.S. government bonds by the largest ever monthly amount in June. Expanding this thread, it should be noted that China’s U.S. debt ownership has fallen to $843.7 billion in June from $938.3 billion in September 200,9 according to U.S. Treasury Department released Monday. This equates to nearly an 11% reduction by China.
Yet interestingly, the 10-year U.S. treasury yield has fallen over the same period, despite the meme that China’s voracious U.S. debt buying supports keeps America’s bond yields low. (Note that China’s U.S. debt holdings encompasses more than just ten-year U.S. bonds, however. )
Jim Sinclair’s Commentary
QE to Infinity
There is no other politically expedient solution as the can gets kicked down the road many more times.
