Jim Sinclair’s Commentary

In life and business if you have the right stuff:

Victory belongs to the most persevering.
–Napoleon Bonaparte

My Dear Friends,

A short note of apology for the brief reporting this evening.

Ditti, one of my beloved dogs has gone missing. I have been busy trying to find him. I have called all the dog shelters, and notified the police and community here.

Ditti has a collar tag, phone number, and identification implant so I have high hopes of getting him back. Regardless, my animals mean a lot to me so I am a tad scattered this evening.

Respectfully,
Jim

Gold’s Summer Doldrums Normally See Weakness but Fundamentals Could Lead to Surge
International Business Times

Commentators such as John Embry, James Turk and Jim Sinclair who have called the market right for some time say that the extraordinary macroeconomic, monetary and geopolitical risk in the world today could see gold and silver bullion prices surge this …

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Jim Sinclair’s Commentary

Here is the latest from John Williams’ ShadowStats.com.

- Softer Employment Picture Reflected Minor Catch Up In Distorted Data � Much Weaker Data Loom Despite Ongoing Reporting Quality Issues
- Annual Growth in May Payrolls Slowed Anew
- May Unemployment Rates: 9.1% (U.3), 15.8% (U.6), 22.3% (SGS)
- Broad Money Supply Growth Jumps Again

"No. 371: May Employment and Unemployment"
http://www.shadowstats.com ^[2]

Jim Sinclair’s Commentary

An act of war? An act of stupidity? A switch transaction?

Libya’s Goldman Dalliance Ends in Losses, Acrimony
MAY 31, 2011
BY MARGARET COKER AND LIZ RAPPAPORT

In early 2008, Libya’s sovereign-wealth fund controlled by Col. Moammar Gadhafi gave $1.3 billion to Goldman Sachs Group to sink into a currency bet and other complicated trades. The investments lost 98% of their value, internal Goldman documents show.

What happened next may be one of the most peculiar footnotes to the global financial crisis. In an effort to make up for the losses, Goldman offered Libya the chance to become one of its biggest shareholders, according to documents and people familiar with the matter.

Negotiations between Goldman and the Libyan Investment Authority stretched on for months during the summer …

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Jim Sinclair’s Commentary

This will put extreme pressure on Saudi Arabia, helping Iran’s interest.

This is NOT spontaneous democracy. It is intrigue at the highest level.

Bahrain police open fire at protesters in capital
Jun 3, 9:27 AM (ET)
By BARBARA SURK

DUBAI, United Arab Emirates (AP) – Bahraini police fired tear gas and rubber bullets at protesters marching toward the landmark Pearl Square in the country’s capital Friday, two days after authorities lifted emergency rule.

The downtown square was the focus of weeks of Shiite-led protests against Sunni rulers earlier this year. Witnesses in the tiny island kingdom said there were no immediate reports of casualties among the hundreds of opposition supporters who again took their grievances to the streets.

The country’s security force moved against the protesters shortly before Formula One’s governing body deemed the kingdom safe enough to host the Bahrain Grand Prix in October.

The annual F1 race has been Bahrain’s most profitable international event since 2004, when the island nation became the first Arab country to stage the Grand Prix. Bahrain organizers insisted they are ready to host the race this year despite the deadly crackdown. The season-opening March auto race was postponed because of political unrest.

The Bahraini government lifted emergency rule Wednesday.

Tanks and soldiers left the heart of capital, but authorities warned they were not easing pressure on anti-government protesters. Opposition groups have called supporters to return to the streets, the first such appeal since the military overran the protesters’ encampment at Pearl Square after martial law was imposed in mid-March.

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Jim Sinclair’s Commentary

More debilitating records being set.

U.S. runs up massive trade deficits with China, Mexico, Japan and Germany
by G. Scott Thomas
Friday, June 3, 2011, 1:00am EDT

The United States ran up a trade deficit of more than $10 billion with four different countries. And it took just three months to do it.

America’s balance of trade with China, Mexico, Japan and Germany plummeted more than $10 billion into the red during the first quarter of 2011, according to new figures from the U.S. Bureau of Economic Analysis.

The worst imbalance is with China. American companies exported $26 billion of goods to China in January, February and March. But American consumers purchased more than $86 billion of imported Chinese goods during the same three-month span.

The resulting U.S. trade deficit with China: $60.20 billion in the first quarter alone.

The next-largest American deficits for the quarter were $16.33 billion with Mexico, $16.28 billion with Japan, $11.00 billion with Germany and $9.63 billion with Canada.

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