Jim Sinclair’s Commentary
This is a Western World problem. Nothing has been done about the cause (OTC derivatives) so the downward spiral will continue.
Confidence this time sunders in all currencies of the Western World due to continuing violence of price. The result you are already seeing is currency induced cost push inflation. It starts moderately such as in energy and copper. As Dean Harry and I have said, all of sudden it explodes.
Hyperinflation is the extreme side of currency induced cost push inflation.
‘We’re at risk of financial collapse’: Ken Clarke’s warning for Western economies
By JAMES CHAPMAN and JAMES SLACK
Last updated at 4:01 PM on 15th October 2010
The West is in ‘grave danger of financial collapse’, Kenneth Clarke warned last night.
We face ‘quite the most dramatic’ spending cuts in ‘living memory’, the former chancellor added as the Coalition prepares to unveil plans to rein in the unprecedented budget deficit left by Labour.
‘I actually am one of those who believes, with a grave danger of financial collapse, we’re not out of the woods in the Western world yet,’ he said in the extraordinary address.
‘There is an extremely serious financial crisis.’
Warning: Justice Secretary Kenneth Clarke warned the West is in ‘grave danger of financial collapse’
His remarks appeared to contradict the Prime Minister, who insisted days ago that the Coalition’s early decisions have put Britain ‘out of the danger zone’.
Mr Clarke said the UK had ‘rescued ourselves at the moment’, but added: ‘If we fail to deliver with the [cuts] programme we’re going to set out, we’ll be back there all too soon.’
Speaking ahead of next week’s comprehensive spending review, which will see most Government departments’ budgets cut by 25 per cent over four years, the Justice Secretary said: ‘These are difficult circumstances.’
Jim Sinclair’s Commentary
Apparently media wise it is possible to make the Gulf oil spill go away.
Foreclosure Gate is here to stay!
Jim Sinclair’s Commentary
Here is why Bernanke was on the down low regarding QE last week. The fact is he has no choice. It is that or the West falls into a black hole of insolvency.
QE is therefore going to infinity.
China’s not the villain if the West tries to debase its debt through QE
Last weekend’s "currency war summit" ended in dismal failure. Future historians will wince.
By Liam Halligan
Published: 9:00PM BST 16 Oct 2010
The annual meetings of the International Monetary Fund in Washington are supposed to generate some kind of resolution. Instead, all we got was posturing and a slew of pious speeches saying that "co-operation is crucial".
What is now clear is that some of the world’s leading economies are deliberately debasing their currencies in order to make their exports more competitive and lower the real value of the massive debts they owe the rest of the world.
Tempers are rising, as are protectionist sentiments. Across the globe, governments are talking about "aggressive tariff barriers" and "trade retaliation" – language that hasn’t been used by mainstream peacetime politicians since the mid-1930s.
Yet instead of knuckling-down and addressing the urgent task of building some kind of an agreement to contain a fully-blown currency conflict, world leaders last Sunday urged the IMF only to "study the issues", and "play a stronger role in monitoring how the policies of each member state affects the others".
This was a pathetic response. The concluding statement of the fund’s policy-setting committee meekly pledged to "work toward a more balanced pattern of global growth, recognising the responsibilities of surplus and deficit countries".
