In The News Today

Posted at 8:42 AM (CST) by & filed under In The News.

My Dear Extended Family,

The most crowded trade on the planet has turned bad, the short the EU trade.

How about 1.305 to 1.32? The expat euro snobs are bleeding today.



Jim Sinclair’s Commentary

John Williams of shares his wisdom with us.

– A Move to Open-Ended Monetization of Treasuries?
– Payroll Jobs Down by 261,000, Household-Survey Employment Down by 86,000,
Since President Obama‚s January 2009 Inauguration
– BLS Did Not Publish Actual July-to-August Unemployment Rate Change
– August Unemployment: 8.1% (U.3), 14.7% (U.6), 22.8% (
– M3 Annual Growth Notches Higher
– Jump in Reported Inflation Likely in Week Ahead


Jim Sinclair’s Commentary

Here is an example of why you should consider subscribing to John Williams will see the improvement when it comes before any statistician.

We have nailed this 15 to 17 year period. Now we start preparation to know what full valuation is when it comes to gold

Opening Comments and Executive Summary.
Suggestions of mounting systemic-solvency issues have begun to surface in recent central bank activity and discussions, and that circumstance is worthy of a comment before getting into the August labor data and other economic numbers. Efforts are afoot to introduce open-ended buying of government bonds by the European Central Bank (ECB) and by the Federal Reserve. While the ECB effort already is “approved,” it may run into problems with the financial prudence demanded by the Bundesbank; the Fed suffers no such apparent constraint. With a lack of concern for financial propriety, born of necessity, the U.S. central bank likely will need and get such a bond-buying program in place, soon, with negative implications for the U.S. dollar and domestic inflation, as discussed in the Hyperinflation Watch section.

The August employment and unemployment data either were statistically insignificant or simply were meaningless on a month-to-month basis. Broadly, though, payrolls show that the economy is not recovering, while unemployment—from the standpoint of common experience—remains near a post- Great Depression high. Nonetheless, politics and the markets are putting unusual twists into the data and economic claims, as discussed in this section.

Construction spending continued its pattern of low-level stagnation in July, with unchanged August construction payrolls suggesting further stagnation in August (see Reporting Detail section).

Annual inflation in the July PCE deflator came in at 1.3%, below the Fed’s 2.0% target for a fourth month (see the Reporting Detail section). The recent slowing of annual inflation, however, is about to reverse, with higher energy, food and “core” prices suggesting a sharp spike in both headline monthly and annual August CPI inflation, due for release on Friday, September 14th (see the Week Ahead section).


Jim Sinclair’s Commentary

Here is the real jobs number, the Labor Force.

QE to infinity. Whatever is required money wise, here and there, will be supplied or it’s back to the Stone Age.

Record 88,921,000 Americans ‘Not in Labor Force’—119,000 Fewer Employed in August Than July
By Terence P. Jeffrey
September 7, 2012

( – The number of Americans whom the U.S. Department of Labor counted as “not in the civilian labor force” in August hit a record high of 88,921,000.

The Labor Department counts a person as not in the civilian labor force if they are at least 16 years old, are not in the military or an institution such as a prison, mental hospital or nursing home, and have not actively looked for a job in the last four weeks. The department counts a person as in “the civilian labor force” if they are at least 16, are not in the military or an institution such as a prison, mental hospital or nursing home, and either do have a job or have actively looked for one in the last four weeks.

In July, there were 155,013,000 in the U.S. civilian labor force. In August that dropped to 154,645,000—meaning that on net 368,000 people simply dropped out of the labor force last month and did not even look for a job.

There were also 119,000 fewer Americans employed in August than there were in July. In July, according to the Bureau of Labor Statistics, there were 142,220,000 Americans working. But, in August, there were only 142,101,000 Americans working.

Despite the fact that fewer Americans were employed in August than July, the unemployment rate ticked down from 8.3 in July to 8.1. That is because so many people dropped out of the labor force and stopped looking for work. The unemployment rate is the percentage of people in the labor force (meaning they had a job or were actively looking for one) who did not have a job.


Jim Sinclair’s Commentary

Sterilized QE looks a lot like good old QE to me.


Jim Sinclair’s Commentary

Yesterday the burning of Wall Street and three major firms was reported as art. Today we have mock hangings. If I were, heaven forbid, the banksters, I would move to Arusha, Tanzania under the name Jose Hemenes and live in an artesian village.

Greeks stage mock hangings in protest at austerity measures as European Central Bank riles Germans with euro debt plan
By Hugo Duncan

Members of the Greek security forces staged a symbolic hanging in front of the nation’s parliament in Athens in protest at austerity measures in place in the debt-stricken country.

Uniformed members of the police force, fire brigade and coast guard staged the emotive demonstration during a rally yesterday to protest against cuts to security forces’ pay and benefits.

On the same day the European Central Bank launched a bold plan to save the crumbling euro from collapse, but this led to a damaging rift with Germany.

ECB president Mario Draghi said the bank will buy the debt of troubled eurozone countries such as Spain to bring down their borrowing costs and  prevent a break-up of the  single currency.


Jim Sinclair’s Commentary

War before the election? It certainly would change the focus of voters.

Canada closes embassy in Iran, to expel Iranian diplomats
Fri Sep 7, 2012 11:59am EDT
By Randall Palmer

OTTAWA (Reuters) – Canada has closed its embassy in Iran and will expel all Iranian diplomats in Canada within five days, Foreign Minister John Baird said on Friday, denouncing Tehran as the biggest threat to global security.

"Diplomatic relations between Canada and Iran have been suspended," Baird said.

He cited Iran’s nuclear program, its hostility toward Israel and Iranian military assistance to the government of President Bashar al-Assad of Syria, which is locked in civil war with rebels. He also said Iran was a state sponsor of terrorism.

Canada’s move was swiftly applauded by Israeli Prime Minister Benjamin Netanyahu, who has strongly warned of the danger of a growing threat from Iran.

Baird accused Iran of showing blatant disregard for the safety of foreign diplomats. "Canada views the government of Iran as the most significant threat to global peace and security in the world today," he said in a statement.

"Under the circumstances, Canada can no longer maintain a diplomatic presence in Iran," he said, declaring that Iran had shown "blatant disregard" for the Vienna Convention’s guarantee of protection for diplomats.


Jim Sinclair’s Commentary

At this time a return to the gold standard is neither practical nor desirable.

The role of gold is to guarantee ground gained in sound monetary finance endures for generations. It does not create sound monetary ground gained.

The right time for a return to gold standard of sorts is after a disaster, or an enlightened monetary restructuring.


Jim Sinclair’s Commentary

You sold gold short after Labour Day on the counsel of who?



Jim Sinclair’s Commentary

Please note the last column showing changes.



Jim Sinclair’s Commentary

You have to love MSM. My enthusiasm never waned.

The only word they forgot to use is "unexpectedly."

As enthusiasm for gold returns, all eyes turn to Fed
The Globe and Mail

After a long summer slumber, the gold market looks set to re-awaken, thanks to some powerful jolts from central banks that could launch the precious metal to record highs.

Market watchers said the European Central Bank’s announcement of a bond-purchase quantitative easing (QE) program Thursday, together with the U.S. Federal Reserve Board edging closer to unveiling a new QE program of its own as early as next week, have injected life into gold after a sluggish six months of sideways trading.

Bullion topped $1,700 (U.S.) an ounce in New York for the first time since early March, extending a run that has lifted the metal $100 in the past three weeks.

“The fundamental argument behind it is monetary policy in Europe and the United States. [Quantitative easing] is basically printing money,” said Aaron Fennell, futures specialist at ScotiaMcLeod.

Since printing money is considered both inflationary and currency-debasing, and gold is traditionally considered a hedge against both inflation and currency devaluation, the QE moves are providing traders with a strong argument to return to gold.