In The News Today

Posted at 10:54 AM (CST) by & filed under In The News.

The most Evil on the planet has the greatest sized soapbox.
–Yra Harris explains MOPE via MSM.

Jim Sinclair’s Commentary

Whatever Spain needs, Spain will get.

Spain’s Ratings Cut by S&P on Deficit, Bank Bailout Concern
By Cordell Eddings – Apr 26, 2012 3:42 PM MT

Spain’s sovereign credit rating was cut to BBB+ from A by Standard & Poor’s on concern the nation will have to provide further fiscal support to the banking sector as the economy contracts.

Spain’s short-term rating was lowered to A-2 from A-1, while the outlook on the long-term rating is negative, New York- based S&P said in a statement today.

The nation’s 10-year borrowing costs have climbed about 70 basis points this year as Prime Minister Mariano Rajoy struggles to convince investors he can control public finances amid soaring unemployment and a contracting economy. Banks threaten to disrupt the premier’s efforts as bad loans reach the highest levels in almost two decades.

“Spain’s budget trajectory will likely deteriorate against a background of economic contraction,” S&P wrote in the statement. “At the same time, we see an increasing likelihood that Spain’s government will need to provide further fiscal support to the banking sector. As a consequence, we believe there are heightened risks that Spain’s net general govern debt could rise further.”

Yields on 10-year Spanish bonds surpassed 6 percent on seven trading days this month, boosting concern that borrowing costs may reach levels that prompted bailouts for Greece, Ireland and Portugal. The rate was 5.83 percent.

More…

 

Jim Sinclair’s Commentary

It is going to get a lot cooler before the end of summer.

Cooling U.S. Labor Market Takes a Toll on Confidence: Economy
By Timothy R. Homan and Shobhana Chandra – Apr 26, 2012 9:20 AM MT

More Americans than forecast filed applications for unemployment benefits last week and consumer confidence declined by the most in a year, signaling that a cooling labor market may restrain household spending.

Jobless claims fell to 388,000 from a revised 389,000 the prior week that was the highest since early January, Labor Department figures showed today in Washington. The Bloomberg Consumer Comfort Index declined to minus 35.8 from minus 31.4 the previous week.

“There has been some slowdown in the labor market,” said Yelena Shulyatyeva, a U.S. economist at BNP Paribas in New York, who correctly projected the level of jobless claims. “That makes consumers feel less confident, and makes them more cautious about their spending. We could see some weakness in April payrolls.”

Fewer firings are needed to lay the groundwork for more hiring and support consumer demand, which makes up 70 percent of the economy. Another report today showed that signed contracts to buy homes rose more than forecast in March, more evidence of a stabilizing housing market that may boost confidence.

Stocks climbed for a third day after the housing data. The Standard & Poor’s 500 Index (SPX) rose 0.2 percent to 1,392.8 at 12:09 p.m. in New York. The yield on the benchmark 10-year Treasury note fell to 1.94 percent from 1.98 percent late yesterday.

More…

Jim Sinclair’s Commentary

Add to this very interesting interview the fact that the West has declared Economic War via the SWIFT system on any nation that does not adhere to the sanctions against Iran.

The implications of China paying for Iranian oil in gold is the most important event in the modern history of gold

1. It is reasonable to assume that China has been threatened with total or at least selective exclusion from the SWIFT system if it pays in any currency for Iranian oil.

2. Gold has been decided by China as the means of making payment for massive international purchases free of the SWIFT system.

3. Other Asian and Middle Eastern nations will now see the gold they hold as money free of Western economic interference.

4. Gold now is not only money free of liability, but also free from interference regarding settlement by the long arm of Western influence.

5. The SWIFT system is becoming ever more a weapon of Western international political will.

6. In case of war anywhere, it is now demonstrated for all to see that only gold will buy the materials required. Paper currencies are under the SWIFT system’s control in settlement.

7. Far from being a barbaric relic, gold is now clearly the money of state survival in every sense.

8. It is reasonable and possible for the supply of physical gold to fall far behind the size of the massive short positions now common to algorithm and hedge fund paper shorts. That will make an effective cover at a reasonable price as compared to a certain day’s close impossible the following day on an exogenous event.

9. It may not be possible to use TA of any nature to determine a price of overvaluation for gold. Should the USA decide to take on China in full out economic war with the physical market totally illiquid, such as through isolation from the SWIFT system, consider the gold price that might result.

Jim Sinclair’s Commentary

Push the following button before entering the gold market.

 

Jim Sinclair’s Commentary

True love is rare.

clip_image002

 

Jim Sinclair’s Commentary

Whatever is required will be provided as long as the nation asking opts to remain in the EU. The funds will be provided for by the European Stability Mechanism Treaty due for passage in July of 2012.

Greece reported to be in talks about one-year deficit extension

Greece’s Finance Ministry is in talks with the country’s lenders to extend the period of fiscal adjustment by one year to 2015, according to reports.

Finance Minister Filippos Sachinidis discussed the issue with International Monetary Fund officials in Washington over the weekend, according to Ta New newspaper.

PASOK leader Evangelos Venizelos, who Sachinidis succeeded, has made the issue one of the central themes of his campaign. He says he will ask the troika to give Greece until 2015, rather than 2014, to reduce its public deficit.

"We believe that this will make the adjustment a little easier, PASOK spokeswoman Fofi Gennimata told Skai TV on Thursday.

Poul Thomsen, the head of the International Monetary Fund team for Greece, is expected to visit the country on his own after the May 6 election before a mission visit takes place the following month.

IMF sources in Washington said that Thomsen is likely to conduct a staff visit that will last a couple of days to assess the situation in Greece following the election.

More…

Jim Sinclair’s Commentary

There is no understand of currency induced cost push inflation almost anywhere, but here it comes.

Global food prices on the rise again, says World Bank
The cost of food rose 8 percent between December and March, after declining in the previous four months, and economists are worried that prices could go higher.
Allison Jackson
April 25, 2012 16:35

clip_image003 China’s inflation rate edged up in March, driven by rising food costs but analysts said there was still scope for Beijing to stimulate the slowing economy. (STR/AFP/Getty Images)

Global food prices are on the rise again, threatening the food security of millions of people, the World Bank said today.

The cost of food around the world rose 8 percent between December and March, after declining in the previous four months, and economists are worried that prices could go higher unless food production increases, Reuters reported, citing the World Bank’s latest food price index.

Prices for major staple crops such as maize, soybean oil, wheat and sugar rose between 5-9 percent due to higher crude oil prices, adverse weather conditions and strong demand for food imports in Asia, the Washington-based lender said.

Only rice avoided a price bump thanks to plentiful supply and fierce competition among exporters, the Los Angeles Times noted.

More…

More Americans Than Projected Filed Jobless Claims Last Week
By Timothy R. Homan – Apr 26, 2012 7:40 AM MT

More Americans than forecast filed applications for unemployment benefits last week, a sign that the labor market is taking time to improve.

Jobless claims fell by 1,000 to 388,000 in the week ended April 21 from a revised 389,000 the prior period that was the highest since early January, Labor Department figures showed today in Washington. The median forecast of 48 economists surveyed by Bloomberg News called for a drop to 375,000.

Fewer firings are needed to lay the groundwork for more hiring, which in turn should support consumer spending, the biggest part of the economy. Federal Reserve policy makers yesterday said that while labor-market conditions have improved, the unemployment rate “remains elevated,” helping explain why they stuck to a plan to hold borrowing costs close to zero through 2014.

“It’s just so hard for companies to be confident and start hiring,” said Yelena Shulyatyeva, a U.S. economist at BNP Paribas in New York, who correctly projected the level of jobless claims. “We believe that March is probably not the end of the modest readings on payrolls.”

A separate report today showed that signed contracts to buy U.S. homes rose more than forecast in March as low interest rates drew buyers back into the market.

More…