Jim Sinclair’s Commentary
Currency induced cost push inflation, not simply crop circumstances.
Jim Sinclair’s Commentary
My former floor partner and good friend Yra Harris has some very interesting comments relevant to today.
Notes From Underground: Strategic and Economic Dialogue … Enough SED
By Yra
Chinese and U.S. officials have been meeting in Washington for the past two days under the aegis of the annual forum of Strategic and Economic Dialogue (SED). All the news releases from these meetings sound so hopeful about increased cooperation between the world powers. The Chinese feed the U.S. policy makers with words of promise about the SINO economy becoming more market-oriented and the American delegation tells the Chinese that they will be fiscally responsible and do all they gain to maintain the value of U.S. paper assets that fill the vaults in Beijing. An hour after the Chinese head home, the financial media will no doubt be hungry for some more morsels of hope. So it goes and it will continue: Both sides pledging fidelity the vibrancy of the global economic order.
Geithner was trumpeting the news that the Chinese promised to level the playing field for U.S. investors in China. The only problem is we don’t know WEN. The U.S. and China will always see differently as they operate on different timelines. The U.S. is worried about quarterly profits and four-year presidential cycles. The Chinese have a far different time frame and will let events unfold in a much longer period. (THE FAMOUS LINE BY CHOU EN LAI TO HENRY KISSINGER WHEN MR. CHOU WAS QUIZZED ON HIS VIEWS ABOUT THE FRENCH REVOLUTION AND RESPONDED: “IT’S TOO EARLY TO TELL.”) There lies a great chasm between promises and deeds.
The news keeps pouring out of Europe and the only thing we know for sure is that everything that emanates from Brussels is a LIE. The Eurocrats spend their time denying “rumors” that turn out to be true and “truths” that turn out be rumors. There is an emergency meeting; there is no meeting. The Greeks are leaving the EURO. No, the Greeks are not leaving. There is a crisis; there is no crisis.
The bottom line is that when so many policy makers have been so disingenuous for so long, nobody has any idea of the FACTS. One thing that we can be certain of is that before any of the PIIGS depart from the EURO a massive audit will have had to be done to measure the costs of staying in versus the costs of leaving the EURO. The costs to be measured are not the costs to the GREEKS or the other “profligates” but rather to the healthy center.
Jim Sinclair’s Commentary
Click chart to enlarge today’s 30 Year Bonds chart in PDF format.
Jim Sinclair’s Commentary
Gold is debt. Debt has only one way to go, and that is up, so therefore gold has but one way to go as well.
The Angel calling on Gold is $1764!
Jim Rogers: ‘US the largest debtor nation in history’
