In The News Today

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Jim Sinclair’s Commentary

The definition of a vigilante is an amoral destroyer who would cause social damage without any concern whatsoever. If there are devils on earth it is the vigilante raider.

Today the destroyers are rewarded while the builders must be prepared to enter combat.

Western finance is a world of disgraceful devils.

Irish Bailout May Unleash Vigilantes on Portugal: Euro Credit
November 19, 2010, 8:36 AM EST
By Matthew Brown

Nov. 19 (Bloomberg) — A resolution of the Irish debt crisis may shift the burden of speculation to Portugal.

While officials such as European Central Bank Vice President Vitor Constancio predict a bailout of Ireland will reduce financial pressures in the euro region, analysts from Citigroup Inc. and Nomura International Plc say any relief would be short-lived as investors turn their focus to the next-weakest peripheral nation.

The markets indicate that country is Portugal with 10-year bond yields of 6.88 percent, compared with 8.26 percent in Ireland and 11.62 percent in Greece, which received rescue funds in May from the European Union and International Monetary Fund. Portuguese Finance Minister Fernando Teixeira dos Santos said Nov. 15 that while “there is a risk of contagion,” that doesn’t mean the country will seek financial aid.

“Portugal isn’t in the situation that it is now because of Ireland,” said Steven Mansell, director of interest-rate strategy at Citigroup Global Markets Ltd. in London. “If Ireland reaches an agreement to tap the European Financial Stability Facility or some other mechanism to support its banking sector, I don’t think that will alleviate the pressure on Portugal.”

The government has forecast that economic growth in Portugal will slow to 0.2 percent in 2011 from an estimated 1.3 percent this year. Portugal has made less progress at taming its deficit than some of the other peripheral nations. In the first nine months, the central government’s deficit rose 2.3 percent from a year earlier. That compared with a decline of more than 40 percent in Spain and more than 30 percent in Greece.


Jim Sinclair’s Commentary

It is hard for any union, be that the union of US States of the European Union to survive the power of the demonic destroyers. The only way the EU can buy time is to go with QE and do a total rescue of all the weak states before Monday. That will lead to hyperinflation there.

As I have told you for years now, there is no practical solution anymore. The OTC derivative market and layers of debt have insured that.

The article posted this weekend by Martin Armstrong speaks articulately to the debt problem. Please review it.

Gold will trade at $1650 and beyond.

The horrible truth starts to dawn on Europe’s leaders
By Ambrose Evans-Pritchard

The entire European Project is now at risk of disintegration, with strategic and economic consequences that are very hard to predict.

In a speech this morning, EU President Herman Van Rompuy (poet, and writer of Japanese and Latin verse) warned that if Europe’s leaders mishandle the current crisis and allow the eurozone to break up, they will destroy the European Union itself.

“We’re in a survival crisis. We all have to work together in order to survive with the euro zone, because if we don’t survive with the euro zone we will not survive with the European Union,” he said.

Well, well. This theme is all too familiar to readers of The Daily Telegraph, but it comes as something of a shock to hear such a confession after all these years from Europe’s president.

He is admitting that the gamble of launching a premature and dysfunctional currency without a central treasury, or debt union, or economic government, to back it up – and before the economies, legal systems, wage bargaining practices, productivity growth, and interest rate sensitivity, of North and South Europe had come anywhere near sustainable convergence – may now backfire horribly.


Jim Sinclair’s Commentary

This is such a waste of time and effort unless the talks are about a shock and awe rescue of all weak states.

We will have to go through this dark comic of the various steps of how the banksters rape nations with other EU states, one after other.

EU Ministers Said to Plan Meeting Tonight as Irish Talks Ongoing
By Joe Brennan – Nov 21, 2010 5:10 AM MT

European finance ministers are planning a conference call this evening as Ireland edges closer to applying for an international bailout, said a European Union official with direct knowledge of the meeting.

Ireland may make a statement as early as this afternoon as talks with the EU and the International Monetary Fund progress, two separate EU officials said. Prime Minister Brian Cowen is chairing a cabinet meeting in Dublin today to discuss the country’s four-year budget outlook and international officials are working through the weekend to finish an aid deal for the country’s banks and avoid a fresh setback in financial markets.

The aid talks began three days ago after a meeting of EU finance ministers urged Ireland to agree to a package within days. The plan, which will focus on a banking industry reeling from the 2008 property crash, may total as much as 100 billion euros ($136 billion), according to Barclays Capital.

Allied Irish Banks Plc, Ireland’s second-biggest bank, emphasized the fragility of the financial system Nov. 19, reporting a 17 percent decline in deposits this year. IMF Managing Director Dominique Strauss-Kahn said Europe is moving “too slowly” to resolve the sovereign debt crisis that began in Greece.

Investors dumped Irish bonds this month on concern about the nation’s ability to keep its financial system afloat. The premium that investors demand to hold Irish 10-year bonds over the benchmark German bonds rose 3 basis points Nov. 19 to 544 basis points. The spread, a measure of the risk of investing in Irish debt, declined from a record 646 basis points on Nov. 11 as investors anticipated a rescue.


Jim Sinclair’s Commentary

The following quote was sent in by CIGA Dr. Bob:

"The Irish fought for centuries to secure their partial independence (they caved into the Brits in 1920 and sacrificed Northern Ireland), and have given it all back now to the EU for an illusory few years of EU credit-induced false prosperity. The Devil has called in his due."


Jim Sinclair’s Commentary

QE to infinity is certain for Euroland.

Greek Jobless Rate Hit Record High in August
Published: November 11, 2010

Greece’s jobless rate rose to a record 12.2 percent in August, while the nation’s progress in reducing its deficit appeared to slow, government data showed Thursday.

The figures underlined the difficulty of restoring the public finances at a time of economic decline. The government was scheduled to report third-quarter gross domestic product on Friday, and economists surveyed by Reuters predicted a contraction of as much as 5 percent from a year earlier