In The News Today

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Jim Sinclair’s Commentary

Mr. Williams shares with us the very important breakdown of today’s economic statistics.

- April Unemployment Numbers Showed Deepening Economic Disaster
- Unemployed Dropped by 733,000, but Employed Dropped by 73,000, and Labor Force Fell by 806,000
- February-to-April Payroll Jobs Gains Were Bloated Heavily by Concealed and Constantly-Shifting Seasonal Adjustments
- April Unemployment: 6.3% (U.3), 12.3% (U.6), 23.2% (ShadowStats)
- Revised Retail Sales Growth Was Slower 2011-to-Date; Downside Corrections to Prior GDP Reporting Loom in July
- Construction Spending Remained Stagnant
- Year-to-Year M3 Growth Rose to 4.0% in April

"No. 624: Employment and Unemployment, Construction Spending, Retail-Sales Benchmark, M3"
Web-page: http://www.shadowstats.com

 

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Jim Sinclair’s Commentary

Looks a lot like a civil war has developed.

Ukraine clashes: dozens reported dead after Odessa building fire
Police say people choked to death on smoke or were killed jumping out of window after assault on trade union building
Howard Amos in Odessa
theguardian.com, Friday 2 May 2014 15.44 EDT

More than 30 people were reported to have been killed in violent and chaotic clashes in the southern Ukrainian city of Odessa on Friday as pro-Ukrainian activists stormed a building defended by protesters opposed to the current government in Kiev and in favour of closer ties with Russia.

Odessa’s large Soviet-era trade union building was set alight as pro-Ukrainian activists mounted an assault as dusk fell. Police said at least 31 people choked to death on smoke or were killed when jumping out of windows after the trade union building was set on fire.

Bodies lay in pools of blood outside the main entrance as explosions from improvised grenades and Molotov cocktails filled the air. Black smoke from the building and a burning pro-Russian protest camp wreathed the nearby square.

Pro-Russian fighters mounted a last-ditch defence of the burning building, tossing masonry and Molotov cocktails from the roof on to the crowd below.

Medics at the scene said that the pro-Russian fighters were also shooting from the roof. At least five bodies with bullet wounds lay on the ground covered by Ukrainian flags as fire engines and ambulances arrived at the scene.

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Jim Sinclair’s Commentary

This nicely reviews the lack of veracity in the employment figures.

Non-Farm Employment Nonsense: Down The Rabbit Hole
May 2, 2014

The US economy is a house of cards. Every aspect of it is fraudulent, and the illusion of recovery is created with fraudulent statistics.   – Dr. Paul Craig Roberts

While mainstream America will be greeted with news about the huge number of new jobs “created” in April, the truth is that the number of people employed in this country declined in April – by a significant amount.

I’m not going to go through the brain damage of dissecting the numbers other than report the fact that the Labor Force declined by 806,000. Most of that number is likely people who fell off the cliff of long-term jobless benefits. The labor force participation rate is now below 63%. The last time it was this low was March 1978.  This graph shows the “Civilian Labor Force Participation Rate,” which is the number of people employed plus the number of people considered “unemployed” as a percentage of the size of “working age” population.

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In addition to nearly  one million people “disappearing” from the labor force, the Government’s nefariously fraudulent “birth/death” model plugged 234,000 jobs into its statistical model.

Given the natural monthly growth of the population in this country, and given that over a million workers either disappeared down the rabbit hole or were fabricated by the Government statisticians,  it is likely that April in actuality experienced a big decline in jobs.  But the Government would never admit to that.

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Jim Sinclair’s Commentary

Fridays are hot during periods of geopolitical crisis.

Insurgents Shoot Down 2 Ukraine Helicopters
BY PETER LEONARD 
ASSOCIATED PRESS

SLOVYANSK, Ukraine (AP) — Pro-Russia forces shot down two Ukrainian helicopters Friday as Ukraine launched its first major offensive against an insurgency that has seized government buildings in the east. The Kremlin said Kiev’s move "destroyed" the two-week-old agreement on cooling Ukraine’s crisis.

Fighting broke out around dawn near Slovyansk, a city 160 kilometers (100 miles) from the Russian border that has become the focus of the armed insurgency against Ukraine’s interim government. Two helicopter crew members were killed in the crashes, both sides said, and pro-Russia militiaman was reported killed.

One of the helicopters was hit by a surface-to-air missile, the Ukrainian Security Service said, adding that the sophisticated weapon undercut Russia’s claims the city was simply under the control of armed locals. The service said its forces were fighting "highly skilled foreign military men" in Slovyansk.

By late afternoon, the Ukrainian Security Service said the army controlled half of Slovyansk – a claim that could not be immediately verified. Central Slovyansk still remained in the hands of pro-Russia gunmen, according to AP journalists in the city. Several foreign news crews were detained for several hours Friday before being released.

A clash also broke out late Friday between pro-Russians and government supporters in Odessa, on the Black Sea coast some 550 kilometers (330 miles) from the turmoil in the east. Odessa had remained largely untroubled by unrest since the February toppling of pro-Russia President Viktor Yanukovych, which ignited tensions in the east. News reports said several people were wounded, but there was no immediate official information.

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Jim Sinclair’s Commentary

The BRICS will introduce the Great Reset, not the West.

BRICS creating parallel Monetary Fund disillusioned with IMF and World Bank – expert
1 May 2014, 20:14

Frustrated by the IMF and World Bank controversial policy, the BRICS nations go on creating the alternative financial supranational institutions for emerging economies. In recent years the IMF has discredited itself, becoming a completely politicized and "odd" structure, which supports interventionist "super state" ambitions of the EU and the US, stresses Patrick L Young, an expert in global financial markets, referring to the ongoing events in Ukraine.

Brazil, Russia, India, China and South Africa are fed up with the US failure to ratify a four-year-old agreement aimed at reforming the IMF system. Thus the post war consensus on financing bodies appears to be breaking down, writes the expert in his RT Op-Ed ‘BRICS building parallel IMF.’

"The US and Europe have maintained a stranglehold on the IMF/World Bank C-suite not only in the face of a massive eastern renaissance but also with a certain degree of abject hypocrisy given the abysmal financial management of spendthrift US governments for decades let alone the travesty of recent European economic governance," he notes.

According to Patrick Young the IMF is gradually losing its significance as an international financial arbiter. First Dominique Strauss-Kahn and then Christine Lagarde have been entrapped by the "flawed policies of big debt and big government," utterly ruinous for the European economy.

"During recent European bailout negotiations, IMF minutes suggest the political classes managed to ride roughshod over the IMF in order to maintain the flawed (and still crumbling) euro currency at all costs. In that sense, having a weak European with ambitions for higher political office makes a mockery of the idea that the International Monetary Fund is anything more than an overdraft facility to be rigged in favor of perceived western political interests," Patrick L Young explains, adding, "No wonder the rising East is disillusioned."

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Jim Sinclair’s Commentary

Maybe the IMF has a clause in their standby loan that calls for war? West Ukraine is the industrial belt without which no loan can be repaid.

Ukraine crisis: Gunfire and explosions outside rebel-held town of Slavyansk
Insurgents claim "full-scale attack" has been launched by Ukrainian military as helicopter is shot down and the skies are filled with acrid smoke
5:43AM BST 02 May 2014

Ukraine has launched a military assault on the flashpoint town of Slavyansk, raising the stakes in the showdown with Russia, which has promised "catastrophic consequences" if Kiev stepped up operations.

Insurgents shot down two army helicopters, killing two servicemen, including a pilot, as the army tightened its noose around the rebel-held town of 160,000 people.

The predawn offensive drew a sharp response from Moscow, where a spokesman for President Vladimir Putin said it dealt a "final blow" to a deal clinched last month in Geneva meant to ease the crisis.

A spokeswoman for insurgents in Slavyansk, the epicentre of tensions in eastern Ukraine, said the army had staged a "full-scale attack" on the town.

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Jim Sinclair’s Commentary

It seems like a good bet on life insurance for bank holding companies.

Bank manager, 27, washes up dead in Hoboken harbor a month after he went missing while training for a half-marathon
By Snejana Farberov
Published: 11:50 EST, 30 April 2014 | Updated: 17:06 EST, 30 April 2014

The body of a man that was pulled from the Hudson River Monday has been identified as that of a 27-year-old jogger from New Jersey who went missing March 30.

The New Jersey Regional Medical Examiner’s Office identified the remains Tuesday night as Andrew Jarzyk, of Hoboken, thanks to the forensic analysts of the victim’s teeth and personal identifiers like tattoos.

The exact cause and manner of death have yet to be determined, but officials say Jarzyk’s body showed no signs of trauma to suggest foul play.

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Jim Sinclair’s Commentary

Paul Craig Roberts has strong and controversial opinions. His background and correctness so far requires we review it.

Washington Intends Russia’s Demise
Paul Craig Roberts
May 2, 2014

Washington has no intention of allowing the crisis in Ukraine to be resolved. Having failed to seize the country and evict Russia from its Black Sea naval base, Washington sees new opportunities in the crisis.

One is to restart the Cold War by forcing the Russian government to occupy the Russian-speaking areas of present day Ukraine where protesters are objecting to the stooge anti-Russian government installed in Kiev by the American coup. These areas of Ukraine are former constituent parts of Russia herself. They were attached to Ukraine by Soviet leaders in the 20th century when both Ukraine and Russia were part of the same country, the USSR.

Essentially, the protesters have established independent governments in the cities. The police and military units sent to suppress the protesters, called “terrorists” in the American fashion, for the most part have until now defected to the protesters.

With Obama’s incompetent White House and State Department having botched Washington’s takeover of Ukraine, Washington has been at work shifting the blame to Russia. According to Washington and its presstitute media, the protests are orchestrated by the Russian government and have no sincere basis. If Russia sends in military units to protect the Russian citizens in the former Russian territories, the act will be used by Washington to confirm Washington’s propaganda of a Russian invasion (as in the case of Georgia), and Russia will be further demonized.

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The US Has Become A Worse Police State Than Orwell Could Imagine
May 1, 2014 | Categories: Guest Contributions

Guest Column by John W. Whitehead, Rutherford Institute, www.rutherford.org

https://www.rutherford.org/publications_resources/john_whiteheads_commentary/putting_big_brother_in_the_drivers_seat_v2v_transmitters_black_boxes_d

The United States pretends to be a home of freedom and democracy. In fact, the US is rapidly degenerating into a police state and a worse dystopia than George Orwell imagined in his book, 1984.

John W. Whitehead describes below the prison that is being constructed for all of us. This prison is the work of many of our fellow citizens including scientists and entrepreneurs who have gained fame and fortune creating a prison for mankind. What were they thinking as they threw their energy and their lives into constructing a police state dystopia?

Putting Big Brother in the Driver’s Seat: V2V Transmitters, Black Boxes & Drones

By John W. Whitehead

“It’s a future where you don’t forget anything…In this new future you’re never lost…We will know your position down to the foot and down to the inch over time…Your car will drive itself, it’s a bug that cars were invented before computers…you’re never lonely…you’re never bored…you’re never out of ideas… We can suggest where you go next, who to meet, what to read…What’s interesting about this future is that it’s for the average person, not just the elites.”—Google CEO Eric Schmidt on his vision of the future

Time to buckle up your seatbelts, folks. You’re in for a bumpy ride.

We’re hurtling down a one-way road toward the Police State at mind-boggling speeds, the terrain is getting more treacherous by the minute, and we’ve passed all the exit ramps. From this point forward, there is no turning back, and the signpost ahead reads “Danger.”

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Jim Sinclair’s Commentary

It is clear the new anti-terrorist initiative ended this half hearted agreement.

Putin says Geneva agreement no longer viable after Ukrainian military action
Kiev launches offensive against Slavyansk in a bid to retake eastern city from pro-Russia militia
Alec Luhn in Moscow
theguardian.com, Friday 2 May 2014 08.09 EDT

A spokesman for Vladimir Putin said the Geneva agreement to defuse the situation in eastern Ukraine was no longer viable after Kiev launched a military operation against the rebel-held city of Slavyansk on Friday.

The Ukrainian military launched its first serious offensive to retake the city, which is being held by pro-Russia militia, early on Friday morning. The rebel militia said Ukrainian troops had launched attacks on several checkpoints. Ukraine’s defence minister, Arsen Avakov, said his forces had taken control of nine checkpoints to form a "tight ring" around the city.

Two Ukrainian helicopters were shot down and their pilots killed, both Russian and Ukrainian media reported. One militant was killed and another injured, according to the reports. Ukraine’s security service said one helicopter had been brought down by a surface-to-air missile, citing this as evidence that Slavyansk’s defenders were not just citizens who had armed themselves.

In an address to the nation, acting Ukrainian president Oleksandr Turchynov said two Ukrainian soldiers had been killed and seven injured in the course of the operation. He also said that "many" were killed on the other side.

"Criminals received big losses during the operation: many were killed, wounded and arrested," he said, giving no further details.

Turchynov promised amnesty to all armed separatists who had not committed grave crimes and agreed to surrender.

Pro-Russia rebel leader Vyacheslav Ponomarev denied claims by Ukraine’s ministry of defence that four miliants who had shot at helicopters had been captured.

"Basically, at the same time that Russia is taking pains to de-escalate and regulate the conflict, the Kiev regime has begun shooting up peaceful towns with military helicopters and has started a punitive operation, essentially destroying the last hope for the viability of the Geneva agreement," Putin’s spokesman, Dmitry Peskov, said.

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Jim Sinclair’s Commentary

By which side in the conflict?

Obama, Merkel threaten broad sanctions in case Ukraine elections are disrupted
Published time: May 02, 2014 16:39 
Edited time: May 02, 2014 18:00

United States President Barack Obama and German Chancellor Angela Merkel said Friday that the US and European Union are ready to impose broad sectoral sanctions on Russia if upcoming presidential elections in Ukraine are disrupted.

Should Ukrainian presidential elections scheduled for May 25 be impeded by Russia, Pres. Obama said, then sectoral sanctions against Moscow would be “inevitable.”

Germany, Merkel added, is “ready and prepared" to impose sectoral sanctions on Russia in the event that Moscow refuses to help deescalate matters along its border with Ukraine. Both Pres. Obama and Chancellor Merkel told reporters from the White House Rose Garden that while a diplomatic solution to the Ukrainian crisis is preferred, further steps with regards to sectoral measures in the context of certain branches of industry could soon be announced.

The people of Ukraine are expected in three weeks to vote for a new president following the ousting earlier this year of former leader Viktor Yanukovych. But as tensions worsen near Ukraine’s border with Russia to the east and south, both German and American leadership now say that further escalations on the part of Moscow would warrant broader sanctions being introduced.

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Jim Sinclair’s Commentary

What a civil war looks like.

4 dead in Ukraine’s Odessa as pro- and anti-Maidan rallies clash
Published time: May 02, 2014 13:48 
Edited time: May 02, 2014 19:07

Four people were killed and 37 wounded as rival rallies clashed in Ukraine’s port-city of Odessa. A pro-unity demonstration, which included nationalists and football fans, ran into a rally preaching greater autonomy for the regions.

Gunfire was heard in Odessa’s downtown on Friday as two rival rallies met, police having failed to draw them apart. Over 2,000 protesters pelted each other with Molotov cocktails and smoke grenades. Pavements were dismantled to get the stones for the fight, like it was done in Kiev during the Maidan protests.

Local police reported that four people were killed in the stand-off, and at least one of them died due to a gun-shot wound. At least 37 received injuries in clashes.

It all started as around 1,500 supporters of the Kiev authorities gathered at Sobornaya Square in central Odessa. They were accompanied by fans of the local football club, Chernomorets.

Some of the people in the group were wearing the ultra-nationalist Right Sector movement insignia. They were also armed with chains and bats and carried shields, as an Itar-Tass correspondent on the ground reported.

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Kiev: Two Ukrainian troops killed in Slavyansk
DEBKAfile May 2, 2014, 2:12 PM (IDT)

The Ukraine government in Kiev reported Friday that two helicopters were downed by anti-aircraft missiles fired by pro-Russian rebels in Slavyansk and two troops killed.

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EU Commissioner Warns "Any ‘Sensible’ Person Should Oppose Further Russia Sanctions"
Submitted by Tyler Durden on 05/02/2014 13:19 -0400

Obama won’t be happy! "It would harm everybody, the Europeans and the Russians," warned Olli Rehn, the European Commissioner for Economic Affairs, adding that "any ‘sensible’ European Union citizen should oppose further sanctions on Russia because of the economic cost for Europe." As Merkel and Obama cozy’d up for discussions this morning, we can only imagine the promises being made if only she will support his crusade (which she clearly was unwilling to judging from the press conference). Perhaps she should check in with her nation’s CEOs (who have vociferously demanded no more sanctions) and, as Rehn acknowledges, the slowing Russian economy is already having a “negative impact” on Finland and Austria, and "that economic fallout probably will spread to Germany, Poland and the Baltic countries.

As Bloomberg reports, Europe should shun Russia sanctions on economic cost, according to Olli Rehn…

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German firms ask Merkel to stop US-led sanctions on Russia
DEBKAfile May 2, 2014, 9:15 PM (IDT)

German Chancellor Angela Merkel talked to President Barack Obama at the White House Friday under heavy pressure from her domestic business lobby to prevent further sanctions on Russia over the Ukraine crisis. This drive is headed by chemical giant BASF SE, Siemens AG engineering group, Volkswagen AG, Adidas AG and Deutsche Bank AG. They fear damage to their business interests in Russia if the West escalates penalties from targeting individuals to complete economic sectors, as President Obama has threatened.

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Up to 30 killed in Odessa fire – deadliest incident in Ukraine crisis
DEBKAfile May 2, 2014, 11:47 PM (IDT)

Local police report that 30 people died in a fire set by pro-Kiev activists in the trade union building of the southern Ukrainian town of Odessa Friday. Most were pro-Russian separatists. This was the deadliest incident so far in the Ukrainian conflict. Three people were killed and 15 injured in day-long clashes between the opposing sides.

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Jim Sinclair’s Commentary

With today’s modern transportation problems anywhere can be a problem everywhere.

Health officials confirm first case of Mers virus in US
American who works as healthcare worker in Saudi Arabia has been hospitalized with the deadly disease in Indiana
Associated Press in New York
theguardian.com, Friday 2 May 2014 15.42 EDT

Health officials on Friday confirmed the first case of an American infected with a mysterious Middle East virus. The man fell ill after arriving in the US about a week ago from Saudi Arabia where he is a health care worker.

The man is hospitalized in Indiana with Middle East respiratory syndrome, or Mers, according to the Centers for Disease Control and Prevention, which is investigating the case along with Indiana health officials.

Saudi Arabia has been the center of an outbreak of MERS that began about two years ago. At least 400 people have had the respiratory illness, and more than 100 people have died. All had ties to the Middle East or to people who traveled there. Infections have been previously reported among health care workers.

Mers belongs to the coronavirus family that includes the common cold and Sars, or severe acute respiratory syndrome, which caused some 800 deaths globally in 2003.

The Mers virus has been found in camels, but officials don’t know how it is spreading to humans. It can spread from person to person, but officials believe that happens only after close contact. Not all those exposed to the virus become ill.

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Jim Sinclair’s Commentary

These statistics are totally skewed by the "Participation Rate" which means nearly 900,000 people dropped out of the work force.

That completely negates the gain in the glee reported below.

Payrolls in U.S. Rise by Most Since 2012, Unemployment at 6.3%
By Michelle Jamrisko May 2, 2014 5:30 AM MT

Employers boosted payrolls in April by the most in two years and the jobless rate plunged to 6.3 percent as companies grew confident the U.S. economy is emerging from a first-quarter slowdown.

The 288,000 gain in employment was the biggest since January 2012 and followed a revised 203,000 increase the prior month that was stronger than initially estimated, Labor Department figures showed today in Washington. The median forecast in a Bloomberg survey of economists called for a 218,000 advance. Unemployment dropped from 6.7 percent to the lowest level since September 2008 as fewer people entered the labor force. Wages and hours worked were stagnant.

Households spent more freely as the first quarter drew to a close and manufacturing accelerated, helping explain why companies such as Ford Motor Co. (F) are taking on more workers. The figures corroborate theFederal Reserve’s view that the expansion is perking up after stagnating last quarter.

“The job market is starting to click on all cylinders — the engine is not running very fast, but all cylinders are moving,” Robert Stein, deputy chief economist at First Trust Portfolios LP in Wheaton, Illinois, said before the report. His firm is the second-best forecaster of payroll growth for the past two years, according to data compiled by Bloomberg. For the Fed, it “fits right within their wheelhouse, and wouldn’t alter in any way what they’re likely to do.”

Forecasts for April payrolls ranged from increases of 155,000 to 292,000, according to the Bloomberg survey of 94 economists. Last year, the U.S. added more than 194,000 jobs each month, compared with about 186,000 in 2012. Economists surveyed by Bloomberg on April 4-9 project payroll gains to match 2013.

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