Jim Sinclair’s Commentary
We missed Budica earlier today.
![clip_image001[1]](http://jsmineset.com/wp-content/uploads/2010/11/clip_image001110.jpg "clip_image001[1]")
Jim Sinclair’s Commentary
Recall the posting of earlier today. The G20 meeting is totally FUBAR but the closing statement will hail it a great success.
The world has to be getting tired of blatant lies all the time.
G20 ushers in "great leap forward" on development
By Alan Wheatley, Global Economics Correspondent
SEOUL | Thu Nov 11, 2010 2:10am EST
SEOUL (Reuters) – A new global development strategy to be unveiled at this week’s G20 summit marks a "great leap forward," the head of the OECD said on Thursday.
The Group of 20 major economies plans to endorse the "Seoul Development Consensus for Shared Growth," which includes an emphasis on infrastructure investment as a means to attain sustainable growth in poorer countries.
"This is really going to change the way in which we address development," Angel Gurria, secretary-general of the Organization for Economic Co-operation and Development, told reporters.
He said the adoption of a multi-year action plan would be a "a very big deliverable" from the two-day G20 summit, which starts on Thursday.
The blueprint identifies nine areas where action is needed to ease development bottlenecks, including skills training, increased access to finance, expanded investment and improvements to the physical fabric of developing countries.
Jim Sinclair’s Commentary
Just another day at the office.
Jim Sinclair’s Commentary
Regardless of the rhetoric that will be published at the close of the G20 session, it is totally FUBAR.
It is every country for themselves as a result of the monetary sins and the quarterly attack of the international investment firms using OTC derivative credit default swaps.
The Irish said they had no idea why their bond market was under such pressure. It is called an attack.
Pessimism pervades as G20 leaders show sharp split
SEOUL, South Korea — A strong sense of pessimism shrouded the start of an economic summit of rich and emerging economies Thursday, with President Barack Obama and fellow world leaders arriving in Seoul sharply divided over currency and trade policies.
The Group of 20 summit, held for the first time in Asia, has become the centerpiece of international efforts to revive the global economy and prevent future financial meltdowns.
Failure in Seoul could have severe consequences. The risk is that countries would try to keep their currencies artificially low to give their exporters a competitive edge in global markets. That could lead to a destructive trade war. Countries might throw up barriers to imports – a repeat of policies that worsened the Great Depression.
Hopes had been high that the Group of 20 – encompassing rich nations such as Germany and the U.S. as well as growing giants such as China and Brazil – could be the world forum for hashing out an economic way forward from financial crisis.
But agreement appeared elusive as the summit began, divided between those such as United States that want to get China to allow its currency rise and those irate over U.S. Federal Reserve plans to pump $600 billion of new money into the sluggish American economy, effectively devaluing the dollar.
Jim Sinclair’s Commentary
I am surprised. MOPE would usually run the headline that prices of homes are steady in 50% of the country.
Home Prices Fall in Half of U.S. Cities, Realtors Say
By Kathleen M. Howley – Nov 11, 2010 7:51 AM PT
Home prices fell in half of U.S. cities in the third quarter as banks stepped up repossessions of properties in default.
The median price of a single-family home dropped in 76 of 155 metropolitan areas measured, the National Association of Realtors said in a report today. Prices in Ocala, Florida, slumped 20 percent for the biggest decline. Palm Bay, Florida, and Tucson, Arizona, followed with a 15 percent slide. The median U.S. price fell 0.2 percent to $177,900.
The U.S. housing market is struggling as lenders seize a record number of properties and unemployment hovers near a 26- year high. Banks took over 288,345 homes in period covered by the Realtors report, up 22 percent from a year earlier, according to RealtyTrac Inc., a data firm in Irvine, California. Foreclosures boost the supply of available homes and reduce prices because they sell at a discount.
“The bottom has proven to be quite elusive,” said Stan Humphries, chief economist of data firm Zillow.com in Seattle. “There could be another 5 percent coming off the national market” as prices decline further, he said.
The median price of a single-family home in the New York metropolitan area climbed 2.8 percent in the third quarter. The Edison, New Jersey, region had a 3.5 percent gain and prices in the Boston metropolitan area rose 5.3 percent, the report said.
Jim Sinclair’s Commentary
No more speculation of whether QE will occur. The real number the Fed gave was $900 billion.
Fed to buy $105B worth of government bonds in first phase of economic aid program
Jeannine Aversa, AP Economics Writer, On Wednesday November 10, 2010, 4:27 pm EST
WASHINGTON (AP) — The Federal Reserve will buy a total of $105 billion worth of government bonds starting later this week as it launches a new program to invigorate the economy.
The bonds will be purchased through a series of 18 operations that start on Friday and end on Dec. 9, the Federal Reserve Bank of New York said Wednesday. The purchases are the first since the Fed announced last week that it will buy a total of $600 billion worth of Treasury bonds over the next eight months.
The Fed will buy $75 billion of government debt as part of the new program. And, it will buy another $30 billion, using the proceeds from its vast mortgage portfolio.
That totals $105 billion for the first phase of the Fed’s government bond buying. The Fed last week said it anticipates buying on average $110 billion a month.
The Fed’s announcement on Wednesday helped boost stocks and bond prices.
Jim Sinclair’s Commentary
No problem. The Chinese were just on their way to India for a social visit and wished to say hello.
I am surprised the navy was dumbfounded that they did not detect the Chinese submarine on their advanced sonar. It is simple. The Chinese submarine runs silent and invisible because of their caterpillar drive mechanism. The only signal the US gets is whale sounds.
What is the matter with them? Did they miss the movie Red October? Apparently the Chinese did not.
The uninvited guest: Chinese sub pops up in middle of U.S. Navy exercise, leaving military chiefs red-faced
By MATTHEW HICKLEY
Last updated at 00:13 10 November 2007
When the U.S. Navy deploys a battle fleet on exercises, it takes the security of its aircraft carriers very seriously indeed.
At least a dozen warships provide a physical guard while the technical wizardry of the world’s only military superpower offers an invisible shield to detect and deter any intruders.
That is the theory. Or, rather, was the theory.
Uninvited guest: A Chinese Song Class submarine, like the one that surfaced by the U.S.S. Kitty Hawk
American military chiefs have been left dumbstruck by an undetected Chinese submarine popping up at the heart of a recent Pacific exercise and close to the vast U.S.S. Kitty Hawk – a 1,000ft supercarrier with 4,500 personnel on board.
Jim Sinclair’s Commentary
Nobody has spoken about a gold standard. He does not understand.
Even the great have a hard time understanding the role of gold.
What I anticipate and have written about in the manner of gold’s return is NOT a gold standard.
Roubini: Here’s Why a Gold Standard Won’t Work
Published: Tuesday, 9 Nov 2010 | 6:28 PM ET
A gold standard would just make business cycles more extreme, according to co-founder and chairman of Roubini Global Economics, Nouriel Roubini.
What’s more, a gold standard would make central banks unable to fight inflation or deflation, much less do anything to combat persistent unemployment, Roubini said in an interview with NetNet yesterday.
"A fixed exchange regime, even if it is not a gold standard… that world just doesn’t work. Because in that world, monetary policy by definition instead of being countercyclical becomes procyclical," Roubini told NetNet. "Suppose you have a fixed exchange rate regime…it just exacerbates the business cycle."
Roubini asks us to imagine two countries: One that’s growing very quickly, and one that’s growing very slowly.
The economy that is growing quickly would tend to "overheat"—an economic phenomenon characterized by accelerated growth, inflation and the potential for asset bubbles. In the economy that is growing more slowly, there would be a tendency toward deflationary pressure and recession. So, instead of having a central bank with the capacity to successfully counter-balance these tendencies, an economy with a fixed exchange rate regime would continue to reinforce the existing negative trends in the business cycle, Roubini argues.
Jim Sinclair’s Commentary
QE to infinity in euro land.
EU stands ready to ride to Ireland’s rescue as borrowing costs surge
European commission president José Manuel Barroso says ‘all necessary instruments in place’ as fears of Greek-style bailout cast shadow over G20 summit in Seoul
Julia Kollewe
Thursday 11 November 2010 12.56 GMT
European commission president José Manuel Barroso said today the EU stood ready to ride to Ireland’s rescue if needed, as the country’s borrowing costs surged to new record levels.
Barroso insisted that Ireland would be supported by its fellow eurozone members if its debt crisis escalated. But his words failed to calm the European bond market, with the cost of insuring Irish, Spanish and Portuguese government debt against default hitting all-time highs.
Irish 10-year bond yields soared to 9.26% this morning, the highest since the euro was created in 1999. This pushed the premium charged to hold 10-year Irish bonds over German bunds – Europe’s benchmark – to a record 680 basis points, with traders saying liquidity had dried up.
In Portugal, which is also struggling to cope with debt, the spread rose above 500 bps for the first time.
"It’s the same trend we’ve been seeing. The market is very nervy," said Markit analyst Gavan Nolan.
The surge in borrowing costs came despite Barroso’s assurances in Seoul, where world leaders have gathered for the G20 summit. Ireland’s crisis has triggered fears of a repeat of Greece’s near-bankruptcy, casting a shadow over the summit as world leaders try to hammer out a deal for global growth.
"What is important to know is that we have all the necessary instruments in place now to support Ireland if necessary," Barroso said, when asked whether the EU would bail out Ireland as it did Greece earlier this year. "In case of need, the EU is ready to support Ireland".
Jim Sinclair’s Commentary
Gold is Honest Money.
Here is a sixty pound brick of Honest Money. That is the total story. All else is blather
