Posted at 7:03 PM (CST) by & filed under Jim's Mailbox.

Jim,

It is looking more and more likely that the US will be its own undoing of the reserve currency status of the dollar.

CIGA Larry

Russia Sanctions Accelerate Risk to Dollar Dominance
By Rachel Evans Aug 6, 2014 11:51 AM ET

U.S. and European Union sanctions against Russia threaten to hasten a move away from the dollar that’s been stirring since the global financial crisis.

One place the shift has become evident is Hong Kong, where dollar selling has led the central bank to buy more than $9.5 billion since July 1 to prevent its currency from rallying as the sanctions stoked speculation of an influx of Russian cash. OAO MegaFon, Russia’s second-largest wireless operator, shifted some cash holdings into the city’s dollar. Trading of the Chinese yuan versus the Russian ruble rose to the highest on July 31 since the end of 2010, according to the Moscow Exchange.

While no one’s suggesting the dollar will lose its status as the main currency of business any time soon, its dominance is ebbing. The greenback’s share of global reserves has already shrunk to under 61 percent from more than 72 percent in 2001. The drumbeat has only gotten louder since the financial crisis in 2008, an event that began in the U.S. when subprime-mortgage loans soured, and the largest emerging-market nations including Russia have vowed to conduct more business in their currencies.

More…

Jim,

Despite all of Draghi’s money printing, the reality of no real recovery remains.

CIGA Craig

Italy shows euro zone may never have left recession
Aug. 6, 2014, 11:25 a.m. EDT

NEW YORK (MarketWatch)—For U.S. investors who piled into European equities last year, Italy’s unexpected second-quarter contraction raises the question of whether the euro zone itself ever actually left recession.

Italy’s 0.2% quarter-on-quarter contraction (which made for a year-on-year drop of 0.4%) is being widely billed as the third dip into recession territory since 2007. But in reality, the Italian economy has managed to eke out only one paltry quarter of growth in the past three years.

So rather than lament a triple dip, Italians could be forgiven for feeling they never escaped a recession in the first place.

The notion of an Italian triple dip rests on the technical definition of a recession as at least two consecutive quarters of contraction. For economists, however, a recession is a significant fall in activity across the economy that lasts more than a few months. The National Bureau of Economic Research is the arbiter of the U.S. business cycle and doesn’t necessarily need to see two straight quarters of contraction to call it a recession.

Europe doesn’t have a similarly recognized referee. But in June, the business cycle dating committee of the London-based Center for Economic Policy Research think tank argued that it was premature to say the euro zone recession had ended.

More…

Posted at 10:01 AM (CST) by & filed under In The News.

clip_image001

 

Jim Sinclair’s Commentary

The latest from John Williams.

- Despite Narrowing in June Trade Deficit GDP Growth Remains Subject to Trade-Related Downside Revision 
- Monetary Base at All-Time High 
- Pace of Fed Monetization at 91% Year-to-Date 2014 
- July M3 Annual Growth at Five-Year High of 4.7%

"No. 648: June 2014 Trade Balance, Monetary Conditions"
Web-page: http://www.shadowstats.com

Jim Sinclair’s Commentary

My CCO holding down the fort.

image

Jim Sinclair’s Commentary

Can geopolitics get worse? The unfortunate answer is yes.

40,000 Iraqis stranded on mountain as Isis jihadists threaten death
Members of minority Yazidi sect face slaughter if they go down and dehydration if they stay, while 130,000 fled to Kurdish north
The Guardian, Wednesday 6 August 2014 09.51 EDT

Tens of thousands of members of one of Iraq’s oldest minorities have been stranded on a mountain in the country’s north-west, facing slaughter at the hands of jihadists surrounding them below if they flee, or death by dehydration if they stay.

UN groups say at least 40,000 members of the Yazidi sect, many of them women and children, have taken refuge in nine locations on Mount Sinjar, a craggy mile-high ridge identified in local legend as the final resting place of Noah’s ark.

At least 130,000 more people, many from the Yazidi stronghold of Sinjar, have fled to Dohuk, in the Kurdish north, or to Irbil, where regional authorities have been struggling since June to deal with one of the biggest and most rapid refugee movements in decades.

More…

Threat of Ukraine invasion has increased: Polish PM
Aug. 6, 2014, 8:21 a.m. EDT
By Karen Friar

LONDON (MarketWatch) — Poland’s prime minister has warned the risk of invasion by Russia into Ukraine has intensified, media reports said Wednesday. "We have reasons to believe that the threat of a direct intervention is certainly bigger than a few days ago," Donald Tusk said, citing intelligence received in recent hours, at a press conference. The Polish leader added the West doesn’t have a clear answer ready if Russian forces do enter the country. Russia has massed 20,000 troops on its western border with Ukraine, and there is a risk it may be planning a Crimea-style incursion using a peace-keeping mission as the rationale, NATO officials have told media organizations. "We’re not going to guess what’s on Russia’s mind, but we can see what Russia is doing on the ground — and that is of great concern," NATO spokeswoman Oana Lungescu told Reuters, adding it was a "dangerous situation".

More…

 

Jim Sinclair’s Commentary

Sanctions demand sacrifice on the part of Germany.

German factory orders plunge as foreign demand dries up
06.08.2014

Berlin (dpa) – German factory orders plunged in June as foreign demand contracted sharply, data released Wednesday showed.

Industrial orders in Europe‘s biggest economy slumped by 3.2 per cent, after dropping by 1.6 per cent in May, the Economics Ministry said. Analysts had expected a 0.9-per-cent gain.

Leading the fall was a 10.4-per-cent drop in demand from the 18-member eurozone.

This resulted in total foreign orders declining by 4.1 per cent as bulk orders fell away, the ministry said.

Monthly domestic orders were down 1.9 per cent, the data showed.

More…

Jim Sinclair’s Commentary

Continued growth of the Chinese currency will impact the dollar before 2014 is out.

Sovereign Man
August 6, 2014
Vilnius, Lithuania

When you think about “strong banking”, what country comes first to mind?

A few years ago, the most obvious answer would be Switzerland.

Today, however, Switzerland’s reputation for banking is nowhere near where it once was.

Starting in 2009, the US, as chief financial bully, led the charge in assaulting the country’s banking sector and dragging it down brick by brick.

The pummeling has continued ever since, culminating in the end of banking secrecy in the country altogether.

Meanwhile, as Switzerland endured one blow after the next, the Chinese renminbi (RMB) quietly slipped past the steadfast Swiss franc to become a more popular currency for use in trade settlements.

Eager to restore some of its former banking luster, Switzerland has taken note of this and is rapidly positioning itself to become a major center of European RMB trade.

So the government of Switzerland recently signed a bilateral currency swap agreement with China, enabling the two countries to buy and sell up to 150 billion RMB or 21 billion Swiss Francs of each other’s currencies.

Switzerland is just the latest to join the queue, as nearly 25 other central banks already signed similar agreements with China.

Every few weeks, and with increasing frequency, we’re hearing news of the next country that is accepting China’s future financial primacy.

There’s no denying that both sovereign nations and market participants are accepting the validity of the RMB as a major trade currency. This is no longer an anomaly, but part of an obvious trend.

To be fair, it’s not that the RMB is a shoe-in for the next global reserve currency—because the country and its currency undoubtedly both have problems.

What’s really being revealed with these latest developments is relative confidence.

More…

Posted at 12:16 PM (CST) by & filed under In The News.

John Hathaway and Doug Groh: Buy Gold Like It’s 1999
August 5, 2014

The Gold Report: In a 4th of July investor letter, you wrote that the precious metals complex, both mining shares and bullion, appear to be in the process of completing a major bottom, and you’re more comfortable with the proposition that the downside potential has been fully exhausted. What are the signs that it’s really turning this time?

John Hathaway: The gold futures chart is showing that we are in the process of a reverse head-and-shoulders pattern, which is a sign that a bottom has been completed. It means that downward momentum has been exhausted. This bottom will be confirmed when gold trades above $1,400/ounce ($1,400/oz), which is a stretch from where we are. At least we can say fairly credibly that it’s shaping up to be a bottom, but we may test it over the summer.

Source: International Strategy Investment Group LLC

TGR: Are statistics on money flows telling you that investors are starting to get interested again?

JH: Yes. If we look at the SPDR Gold Shares Exchange-Traded Fund (GLD:NYSE), which is one proxy for money flows into the gold space, the outflows that have been predominant over the last couple of years have pretty much run their course. Now, we’re starting to see assets build in the SPDR Gold Shares ETF. At Tocqueville, our fund has seen steady inflows all year, in some cases, very substantial inflows. I don’t know if what we’re seeing is comparable to other managers in the precious metals space, but our experience this year has been positive.

Source: MeridianMacro

TGR: Headlines about conflicts in the Ukraine, Iraq and Gaza have bumped gold prices visibly lately. Can these events act as long-term fundamental supports or do they represent short-term volatility that will fade just as quickly as the headlines?

More…

 

Rick Rule: Three Reasons to Start Buying Resource Juniors
Friday, August 1, 2014
Henry Bonner

Gold has declined slightly, from around $1,320 to $1,300, in the last few weeks. Rick commented that this was normal for a recovery in resource stocks. You expect gradual rises and subsequent consolidations. Today, he lays out his three big drivers for a recovery in the ‘junior’ resource stocks.

Rick, are we still on our way towards a recovery? What catalysts might take the market higher?

“The market for junior resource stocks, as you can see from the performance of the TSX.V, the ASX, and the LSE AIM, marked a bottom around a year ago. They’re in a gradual recovery now, and I believe the uptrend will continue, albeit marked by the same volatility that we’ve seen in the market so far. We’ve experienced three advances and subsequent declines this calendar year – and that’s normal for the early stages of a resource recovery. These advances need to consolidate, which they have already done nicely.

“There are three key drivers to this advancement. First, there’s the incredible amount of capital that the junior market raised five or six years ago and the fact that sooner or later, investors will realize that they’re playing with ’25-cent dollars,’ as many juniors are trading well below the value of their cash and other assets. Second, there are the extraordinarily low valuations attributed to some of the best companies in the sector. Third, there is the increasing pace of mergers and acquisitions. This is a good thing, as horizontal mergers decrease G&A expenses, while in ‘top-down’ mergers, larger mining companies buy up select juniors to add to their exploration and development pipeline.

“Besides these three points, there is also the fact that we are in a nascent boom in the discovery cycle. There has been an increasing pace of new discoveries, and the market certainly appreciates genuine discoveries.

More…

Jim Sinclair’s Commentary

The Brics united financially. This will have an effect on the dollar later in 2014.

Russia, India to ink $40 bn gas deal: Reports
August 5, 2014, 6:28 am

Russian President Vladimir Putin and Indian Prime Minister Narendra Modi are expected to announce a massive natural gas deal during their summit later this year, Indian media reports said Monday.

Russian and Indian officials are negotiating a $40 billion gas pipeline project from Russia to India, oil ministry officials told Indian daily Hindustan Times.

“Russia so far has directed majority of its oil and gas supplies to the West… however, the scenario may be quiet different in the coming years especially in the wake of its gas pipeline to China and the one now proposed till India,” an Indian government official said.

Russia is a source of a third of all natural gas used in Western Europe. However, with the economic sanctions imposed by the US and the EU over the Ukraine crisis, Russian authorities are keen to diversify its gas routes.

More…

Jim Sinclair’s Commentary

This is very scary stuff.

One Person Tested For The Deadly Ebola Virus In Columbus
By 10TV Web Staff Tuesday August 5, 2014 12:18 PM

COLUMBUS, Ohio – Columbus Public Health confirms a person is undergoing testing and has been quarantined for the deadly Ebola virus.  A spokesperson says they’re working with the CDC to learn the preliminary results of those tests.

CPH says the person recently traveled to West Africa, where an outbreak has left nearly 900 people dead.

The virus can be transmitted through close contact with the blood, secretions, organs or other bodily fluids of infected animals.

According to the CDC, symptoms include sudden onset of fever, intense weakness, muscle pain, headache and sore throat. This is followed by vomiting, diarrhea, rash, impaired kidney and liver function, and in some cases, both internal and external bleeding.

No licensed vaccine for Ebola is available. Several vaccines are being tested, but none are available for clinical use.

Meanwhile, the second American aid worker diagnosed with Ebola in Africa arrived back in the U.S. Tuesday afternoon .  59-year-old Nancy Writebol arrived in a plane specially-equipped to contain infectious diseases.  She will be treated in the same hospital isolation unit as Dr. Kent Brantly, the other infected American.

More…

Jim Sinclair’s Commentary

More scary stuff.

Ebola outbreak: BA suspends flights to Sierra Leone and Liberia over virus
British Airways says the ‘deteriorating public health situation’ relating to the Ebola virus is why they have suspended flights until August 31
By Colin Freeman, and Raziye Akkoc
4:23PM BST 05 Aug 2014

British Airways cancelled its flights to Sierra Leone and Liberia, cutting off the only direct flights between Britain and the Ebola-infected area of west Africa.

The carrier, which operates a direct flight four times a week from London to Sierra Leone and onto Liberia, announced on Tuesday it was suspending flights "due to the deteriorating public health situation in both countries".

It follows warnings at the weekend from the World Health Organisation the epidemic, which has killed nearly 900 people since February, was spreading faster than it could be controlled.

Health officials are believed to be particularly concerned about Liberia, where staff are understood have fled hospitals in some areas because of fears they themselves could become infected.

A statement from British Airways sent to travel companies on Tuesday said: "British Airways services from London Heathrow to Freetown and Monrovia will be temporarily suspended from tomorrow, 6 August until 31 August 2014, due to the deteriorating public health situation in both countries."

More…

Jim Sinclair’s Commentary

This is a very serious development being ignored by MSM.

Bond Liquidity Falls 70% in Europe as Sales Soar: Credit Markets
By John Glover August 05, 2014

Bond dealers made money manager Gary Kirk’s job much more difficult when he tried to sell debt securities at the end of the first half. After they gave him “excuse after excuse” he gave up.

“It was way more difficult than it should have been,” according to TwentyFour Asset Management LLP’s Kirk, who said banks offered prices well below what he expected or said they no longer did business in the notes. “Extracting a bid out of anyone was very, very difficult.”

Credit market liquidity has dropped by about 70 percent since the 2008 crisis and continues to decline even as soaring issuance boosts the total size of the market, according to Royal Bank of Scotland Group Plc. A European corporate bond issue now trades once a day on average, compared with almost five times a day a decade ago, according to RBS.

More…

Jim Sinclair’s Commentary

Don’t discount geopolitics as cold war can go hot in an instant.

Russian bomber conducts practice strikes on U.S. missile defenses in Asia
By Bill Gertz – The Washington Free Beacon – - Friday, April 5, 2013

A Russian bomber recently carried out simulated cruise missile attacks on U.S. missile defenses in Asia, raising new questions about Moscow’s goal in future U.S.-Russian defense talks.

According to U.S. officials, a Russian Tu-22M Backfire bomber on Feb. 26 simulated firing air-launched cruise missiles at an Aegis ship deployed near Japan as part of U.S. missile defenses.

A second mock attack was conducted Feb. 27 against a ground-based missile defense site in Japan that officials did not identify further.

The Pentagon operates an X-band missile defense radar on the northern tip of Japan that is designed to monitor North Korean missile launches and transmit the data to missile-firing ships.

The bomber targeting comes as Russia is building up forces in the Pacific by modernizing submarines and building a spy ship specifically for intelligence-gathering against U.S. missile defenses.

More…

U.S. General Is Killed in Attack at Afghan Base; Others Injured
By MATTHEW ROSENBERG and HELENE COOPERAUG. 5, 2014

KABUL, Afghanistan — For the first time since Vietnam, a United States Army general was killed in an overseas conflict on Tuesday when an Afghan soldier opened fire on senior American officers at a military training academy.

The slain officer, Maj. Gen. Harold J. Greene, was the highest-ranking member of the NATO-led coalition killed in the Afghanistan war, and his death punctuated the problems vexing the Americans as they try to wind down the 13-year-old conflict, contending with a political crisis that has threatened to splinter the Afghan government and leave it unable to fend off the Taliban.

The general was among a group of senior American and Afghan officers making a routine visit to Afghanistan’s premier military academy on the outskirts of Kabul when an Afghan soldier sprayed the officers with bullets from the window of a nearby building, hitting at least 15 before he was killed.

Though American officials said General Greene was not believed to have been specifically targeted, his violent death at the hands of an Afghan soldier, not an insurgent, was a reminder of the dangers faced by even the highest-ranking, and best protected, officers in Afghanistan.

More…

Jim Sinclair’s Commentary

Nothing like volatility to suggest incredibility.

Non-Manufacturing ISM Soars To 9-Year Highs Months After Hitting 4-Year Lows
Tyler Durden on 08/05/2014 10:10 -0400

US Services PMI fell from June’s 61.0 level to 60.8 (slightly below the flash print of 61.0 suggesting modest weakness in the latter end of the month) ending a two-month streak of post-weather exuberance asnew orders and jobs data slowed, and Markit warns "growth may have peaked." Factory Orders rose 1.1% for the biggest beat in 9 months. ISM Services smashed expectations and surged to Nov 2005 highs (from 4-year lows just 4 months ago – volatile?) with most sub-indices improving except new export orders fell to 4-month lows.

US Services PMI dropped modestly:

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“While the economy looks set to continue to expand at robust pace in the second half of the year, these summer months may turn out to represent the peaking in the rate of growth.”

So just to baffle everyone with endless BS, moments later ISM Services smashed expectations to its highest since Nov 2005 – a few short months after plunging to 4-year lows.

More…

Jim Sinclair’s Commentary

Economic war can hurt, turning cold war into hot war.

Medvedev: Russia to consider retaliation to EU sanctions
Published time: August 05, 2014 08:29
Edited time: August 05, 2014 16:33

Moscow will consider possible responses to the EU sanctions against Russian airlines, Prime Minister Dmitry Medvedev has said.

“A topic I would like to discuss concerns the consequences of the decision a number of governments have taken in relation to our carriers. We need to discuss possible retaliation,” the Prime Minister said at a meeting with Russia’s Transport Minister Maksim Sokolov and the deputy director of Aeroflot, Vadim Zingman.

On Tuesday, Vedomosti daily reported Russia was considering limiting, or even completely blocking European flights to Asia that cross Siberia, in response to EU sanctions that caused Aeroflot subsidiary Dobrolet to suspend flights on Monday.

Another newspaper source close to the negotiations said the recent halt of Dobrolet flights, as well as Ukraine’s fees for Russian flights to Crimea, have accelerated the talks. Discussions started shortly after the EU introduced its first round of sanctions against Russia.

More…

Jim Sinclair’s Commentary

Looks like the FDIC is getting ready for an event pre 2019.

FDIC: Big banks’ living wills not credible and need to be revised
CNBC.com staff

So-called living wills submitted by big banks are "not credible" and have to be revised by next July, federal regulators said on Tuesday.

The Dodd-Frank financial reforms require certain big banks to submit plans detailing how they would wind themselves down in the event of a crisis. The 11 institutions subject to the rule submitted first-round plans in 2012 and revisions in 2013.

The Federal Deposit Insurance Corp. said each bank had specific shortcomings, and that all banks had a few in common—among them unrealistic assumptions and a failure to identify necessary changes in their structures.

Based on its review, the FDIC said "the plans submitted by the first-wave filers are not credible and do not facilitate an orderly resolution under the U.S. Bankruptcy Code."

The regulator gave the banks til July 1, 2015 to file plans that "demonstrate that the firms are making significant progress to address all the shortcomings identified in the letters," among other requirements.

More…

Jim Sinclair’s Commentary

It’s 2007 all over again.

Moody’s changes outlook for UK banking system to negative from stable
Global Credit Research – 05 Aug 2014

London, 05 August 2014 — The outlook for the UK banking system has been changed to negative from stable. This outlook change reflects our view that the improved operating environment and banks’ stable financial fundamentals will not fully offset the negative credit implications of the finalisation of the UK resolution and bail-in regime and the related ‘ring-fencing’ framework, says Moody’s Investors Service in a new report published today. The report focuses on the rating factors impacting the six largest rated UK institutions, which account for 93.6% of active current accounts.

The new report: "Banking System Outlook: United Kingdom", is now available on www.moodys.com. Moody’s subscribers can access this report via the link provided at the end of this press release.

"The key driver of the change in outlook to negative for the UK banking system is that the UK government is now able to finalise the secondary legislation to implement the structural reforms relating to the UK resolution and bail-in regime and the related ring-fencing framework" says Carlos Suarez Duarte, a Moody’s Vice President – Senior Analyst and author of the report. The UK resolution and bail-in regime and the structural ring-fencing of systemically important retail/SME deposit-taking entities are designed to prevent the use of taxpayer funds to support failed institutions and to facilitate the going-concern loss-absorption of creditors, including senior unsecured bondholders.

More…

Posted at 12:16 PM (CST) by & filed under In The News.

John Hathaway and Doug Groh: Buy Gold Like It’s 1999
August 5, 2014

The Gold Report: In a 4th of July investor letter, you wrote that the precious metals complex, both mining shares and bullion, appear to be in the process of completing a major bottom, and you’re more comfortable with the proposition that the downside potential has been fully exhausted. What are the signs that it’s really turning this time?

John Hathaway: The gold futures chart is showing that we are in the process of a reverse head-and-shoulders pattern, which is a sign that a bottom has been completed. It means that downward momentum has been exhausted. This bottom will be confirmed when gold trades above $1,400/ounce ($1,400/oz), which is a stretch from where we are. At least we can say fairly credibly that it’s shaping up to be a bottom, but we may test it over the summer.

Source: International Strategy Investment Group LLC

TGR: Are statistics on money flows telling you that investors are starting to get interested again?

JH: Yes. If we look at the SPDR Gold Shares Exchange-Traded Fund (GLD:NYSE), which is one proxy for money flows into the gold space, the outflows that have been predominant over the last couple of years have pretty much run their course. Now, we’re starting to see assets build in the SPDR Gold Shares ETF. At Tocqueville, our fund has seen steady inflows all year, in some cases, very substantial inflows. I don’t know if what we’re seeing is comparable to other managers in the precious metals space, but our experience this year has been positive.

Source: MeridianMacro

TGR: Headlines about conflicts in the Ukraine, Iraq and Gaza have bumped gold prices visibly lately. Can these events act as long-term fundamental supports or do they represent short-term volatility that will fade just as quickly as the headlines?

More…

 

Rick Rule: Three Reasons to Start Buying Resource Juniors
Friday, August 1, 2014
Henry Bonner

Gold has declined slightly, from around $1,320 to $1,300, in the last few weeks. Rick commented that this was normal for a recovery in resource stocks. You expect gradual rises and subsequent consolidations. Today, he lays out his three big drivers for a recovery in the ‘junior’ resource stocks.

Rick, are we still on our way towards a recovery? What catalysts might take the market higher?

“The market for junior resource stocks, as you can see from the performance of the TSX.V, the ASX, and the LSE AIM, marked a bottom around a year ago. They’re in a gradual recovery now, and I believe the uptrend will continue, albeit marked by the same volatility that we’ve seen in the market so far. We’ve experienced three advances and subsequent declines this calendar year – and that’s normal for the early stages of a resource recovery. These advances need to consolidate, which they have already done nicely.

“There are three key drivers to this advancement. First, there’s the incredible amount of capital that the junior market raised five or six years ago and the fact that sooner or later, investors will realize that they’re playing with ’25-cent dollars,’ as many juniors are trading well below the value of their cash and other assets. Second, there are the extraordinarily low valuations attributed to some of the best companies in the sector. Third, there is the increasing pace of mergers and acquisitions. This is a good thing, as horizontal mergers decrease G&A expenses, while in ‘top-down’ mergers, larger mining companies buy up select juniors to add to their exploration and development pipeline.

“Besides these three points, there is also the fact that we are in a nascent boom in the discovery cycle. There has been an increasing pace of new discoveries, and the market certainly appreciates genuine discoveries.

More…

Jim Sinclair’s Commentary

The Brics united financially. This will have an effect on the dollar later in 2014.

Russia, India to ink $40 bn gas deal: Reports
August 5, 2014, 6:28 am

Russian President Vladimir Putin and Indian Prime Minister Narendra Modi are expected to announce a massive natural gas deal during their summit later this year, Indian media reports said Monday.

Russian and Indian officials are negotiating a $40 billion gas pipeline project from Russia to India, oil ministry officials told Indian daily Hindustan Times.

“Russia so far has directed majority of its oil and gas supplies to the West… however, the scenario may be quiet different in the coming years especially in the wake of its gas pipeline to China and the one now proposed till India,” an Indian government official said.

Russia is a source of a third of all natural gas used in Western Europe. However, with the economic sanctions imposed by the US and the EU over the Ukraine crisis, Russian authorities are keen to diversify its gas routes.

More…

Jim Sinclair’s Commentary

This is very scary stuff.

One Person Tested For The Deadly Ebola Virus In Columbus
By 10TV Web Staff Tuesday August 5, 2014 12:18 PM

COLUMBUS, Ohio – Columbus Public Health confirms a person is undergoing testing and has been quarantined for the deadly Ebola virus.  A spokesperson says they’re working with the CDC to learn the preliminary results of those tests.

CPH says the person recently traveled to West Africa, where an outbreak has left nearly 900 people dead.

The virus can be transmitted through close contact with the blood, secretions, organs or other bodily fluids of infected animals.

According to the CDC, symptoms include sudden onset of fever, intense weakness, muscle pain, headache and sore throat. This is followed by vomiting, diarrhea, rash, impaired kidney and liver function, and in some cases, both internal and external bleeding.

No licensed vaccine for Ebola is available. Several vaccines are being tested, but none are available for clinical use.

Meanwhile, the second American aid worker diagnosed with Ebola in Africa arrived back in the U.S. Tuesday afternoon .  59-year-old Nancy Writebol arrived in a plane specially-equipped to contain infectious diseases.  She will be treated in the same hospital isolation unit as Dr. Kent Brantly, the other infected American.

More…

Jim Sinclair’s Commentary

More scary stuff.

Ebola outbreak: BA suspends flights to Sierra Leone and Liberia over virus
British Airways says the ‘deteriorating public health situation’ relating to the Ebola virus is why they have suspended flights until August 31
By Colin Freeman, and Raziye Akkoc
4:23PM BST 05 Aug 2014

British Airways cancelled its flights to Sierra Leone and Liberia, cutting off the only direct flights between Britain and the Ebola-infected area of west Africa.

The carrier, which operates a direct flight four times a week from London to Sierra Leone and onto Liberia, announced on Tuesday it was suspending flights "due to the deteriorating public health situation in both countries".

It follows warnings at the weekend from the World Health Organisation the epidemic, which has killed nearly 900 people since February, was spreading faster than it could be controlled.

Health officials are believed to be particularly concerned about Liberia, where staff are understood have fled hospitals in some areas because of fears they themselves could become infected.

A statement from British Airways sent to travel companies on Tuesday said: "British Airways services from London Heathrow to Freetown and Monrovia will be temporarily suspended from tomorrow, 6 August until 31 August 2014, due to the deteriorating public health situation in both countries."

More…

Jim Sinclair’s Commentary

This is a very serious development being ignored by MSM.

Bond Liquidity Falls 70% in Europe as Sales Soar: Credit Markets
By John Glover August 05, 2014

Bond dealers made money manager Gary Kirk’s job much more difficult when he tried to sell debt securities at the end of the first half. After they gave him “excuse after excuse” he gave up.

“It was way more difficult than it should have been,” according to TwentyFour Asset Management LLP’s Kirk, who said banks offered prices well below what he expected or said they no longer did business in the notes. “Extracting a bid out of anyone was very, very difficult.”

Credit market liquidity has dropped by about 70 percent since the 2008 crisis and continues to decline even as soaring issuance boosts the total size of the market, according to Royal Bank of Scotland Group Plc. A European corporate bond issue now trades once a day on average, compared with almost five times a day a decade ago, according to RBS.

More…

Jim Sinclair’s Commentary

Don’t discount geopolitics as cold war can go hot in an instant.

Russian bomber conducts practice strikes on U.S. missile defenses in Asia
By Bill Gertz – The Washington Free Beacon – - Friday, April 5, 2013

A Russian bomber recently carried out simulated cruise missile attacks on U.S. missile defenses in Asia, raising new questions about Moscow’s goal in future U.S.-Russian defense talks.

According to U.S. officials, a Russian Tu-22M Backfire bomber on Feb. 26 simulated firing air-launched cruise missiles at an Aegis ship deployed near Japan as part of U.S. missile defenses.

A second mock attack was conducted Feb. 27 against a ground-based missile defense site in Japan that officials did not identify further.

The Pentagon operates an X-band missile defense radar on the northern tip of Japan that is designed to monitor North Korean missile launches and transmit the data to missile-firing ships.

The bomber targeting comes as Russia is building up forces in the Pacific by modernizing submarines and building a spy ship specifically for intelligence-gathering against U.S. missile defenses.

More…

U.S. General Is Killed in Attack at Afghan Base; Others Injured
By MATTHEW ROSENBERG and HELENE COOPERAUG. 5, 2014

KABUL, Afghanistan — For the first time since Vietnam, a United States Army general was killed in an overseas conflict on Tuesday when an Afghan soldier opened fire on senior American officers at a military training academy.

The slain officer, Maj. Gen. Harold J. Greene, was the highest-ranking member of the NATO-led coalition killed in the Afghanistan war, and his death punctuated the problems vexing the Americans as they try to wind down the 13-year-old conflict, contending with a political crisis that has threatened to splinter the Afghan government and leave it unable to fend off the Taliban.

The general was among a group of senior American and Afghan officers making a routine visit to Afghanistan’s premier military academy on the outskirts of Kabul when an Afghan soldier sprayed the officers with bullets from the window of a nearby building, hitting at least 15 before he was killed.

Though American officials said General Greene was not believed to have been specifically targeted, his violent death at the hands of an Afghan soldier, not an insurgent, was a reminder of the dangers faced by even the highest-ranking, and best protected, officers in Afghanistan.

More…

Jim Sinclair’s Commentary

Nothing like volatility to suggest incredibility.

Non-Manufacturing ISM Soars To 9-Year Highs Months After Hitting 4-Year Lows
Tyler Durden on 08/05/2014 10:10 -0400

US Services PMI fell from June’s 61.0 level to 60.8 (slightly below the flash print of 61.0 suggesting modest weakness in the latter end of the month) ending a two-month streak of post-weather exuberance asnew orders and jobs data slowed, and Markit warns "growth may have peaked." Factory Orders rose 1.1% for the biggest beat in 9 months. ISM Services smashed expectations and surged to Nov 2005 highs (from 4-year lows just 4 months ago – volatile?) with most sub-indices improving except new export orders fell to 4-month lows.

US Services PMI dropped modestly:

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“While the economy looks set to continue to expand at robust pace in the second half of the year, these summer months may turn out to represent the peaking in the rate of growth.”

So just to baffle everyone with endless BS, moments later ISM Services smashed expectations to its highest since Nov 2005 – a few short months after plunging to 4-year lows.

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Jim Sinclair’s Commentary

Economic war can hurt, turning cold war into hot war.

Medvedev: Russia to consider retaliation to EU sanctions
Published time: August 05, 2014 08:29
Edited time: August 05, 2014 16:33

Moscow will consider possible responses to the EU sanctions against Russian airlines, Prime Minister Dmitry Medvedev has said.

“A topic I would like to discuss concerns the consequences of the decision a number of governments have taken in relation to our carriers. We need to discuss possible retaliation,” the Prime Minister said at a meeting with Russia’s Transport Minister Maksim Sokolov and the deputy director of Aeroflot, Vadim Zingman.

On Tuesday, Vedomosti daily reported Russia was considering limiting, or even completely blocking European flights to Asia that cross Siberia, in response to EU sanctions that caused Aeroflot subsidiary Dobrolet to suspend flights on Monday.

Another newspaper source close to the negotiations said the recent halt of Dobrolet flights, as well as Ukraine’s fees for Russian flights to Crimea, have accelerated the talks. Discussions started shortly after the EU introduced its first round of sanctions against Russia.

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Jim Sinclair’s Commentary

Looks like the FDIC is getting ready for an event pre 2019.

FDIC: Big banks’ living wills not credible and need to be revised
CNBC.com staff

So-called living wills submitted by big banks are "not credible" and have to be revised by next July, federal regulators said on Tuesday.

The Dodd-Frank financial reforms require certain big banks to submit plans detailing how they would wind themselves down in the event of a crisis. The 11 institutions subject to the rule submitted first-round plans in 2012 and revisions in 2013.

The Federal Deposit Insurance Corp. said each bank had specific shortcomings, and that all banks had a few in common—among them unrealistic assumptions and a failure to identify necessary changes in their structures.

Based on its review, the FDIC said "the plans submitted by the first-wave filers are not credible and do not facilitate an orderly resolution under the U.S. Bankruptcy Code."

The regulator gave the banks til July 1, 2015 to file plans that "demonstrate that the firms are making significant progress to address all the shortcomings identified in the letters," among other requirements.

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Jim Sinclair’s Commentary

It’s 2007 all over again.

Moody’s changes outlook for UK banking system to negative from stable
Global Credit Research – 05 Aug 2014

London, 05 August 2014 — The outlook for the UK banking system has been changed to negative from stable. This outlook change reflects our view that the improved operating environment and banks’ stable financial fundamentals will not fully offset the negative credit implications of the finalisation of the UK resolution and bail-in regime and the related ‘ring-fencing’ framework, says Moody’s Investors Service in a new report published today. The report focuses on the rating factors impacting the six largest rated UK institutions, which account for 93.6% of active current accounts.

The new report: "Banking System Outlook: United Kingdom", is now available on www.moodys.com. Moody’s subscribers can access this report via the link provided at the end of this press release.

"The key driver of the change in outlook to negative for the UK banking system is that the UK government is now able to finalise the secondary legislation to implement the structural reforms relating to the UK resolution and bail-in regime and the related ring-fencing framework" says Carlos Suarez Duarte, a Moody’s Vice President – Senior Analyst and author of the report. The UK resolution and bail-in regime and the structural ring-fencing of systemically important retail/SME deposit-taking entities are designed to prevent the use of taxpayer funds to support failed institutions and to facilitate the going-concern loss-absorption of creditors, including senior unsecured bondholders.

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Posted at 11:53 AM (CST) by & filed under Jim's Mailbox.

Jim

Nobody knows what DC will do but John makes a good argument that they may do your QE to infinity rather than a bail-in. In any event, we have been out of the system for years.

My best as always,
CIGA Richard M

Embry added: “I find it interesting that they appear to have bailed out Banco Espirito in Portugal this week because there had been some suggestion that this was going to be a bail-in scenario. I believe things are so precarious that everything will be bailed out in order to avert another Lehman moment, which really got things rolling in 2008.

Click here to read the full article…

 

Jim,

This announcement was released on 4:41pm Friday just before the long holiday weekend followed by the sound of crickets in terms of mainstream media coverage.

CIGA Tom

Minister of Finance underscores the importance of ensuring Canada’s financial system remains strong
August 1, 2014 – Ottawa, Ontario – Department of Finance

Finance Minister Joe Oliver today launched a public consultation on a key element of the Government’s comprehensive risk management framework for Canada’s domestic systemically important banks. The proposed regime is aimed at ensuring:

that taxpayers are protected from having to bail out a systemically important bank in the highly unlikely event of such an institution running into difficulty; and,

that Canada’s financial system remains strong by clarifying that banks’ shareholders and creditors are responsible for bearing losses, thereby giving them stronger incentives to monitor the bank’s risk-taking activities.

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Jim,

The MSM is lying to us. This 2012 BBC report suggests that Ebola IS airborne. The original scientific study showed…

"6Contact exposure is considered to be the most important route of infection with EBOV in primates7, although there are reports suggesting or suspecting aerosol transmission of EBOV from NHP to NHP8, 9, 10, or in humans based on epidemiological observations11.

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CIGA Alex

 

Dear Jim,

Hang on to your hats – it’s getting very serious

On Fox Business Stewart Varney just interviewed a trader from the Chicago Mercantile Exchange. He projects thru the last half of this year Japan will see their economy SHRINK 6%. Their bonds presently have an interest rate 1/2 of 1%.

This is very bad for Japan and also the rest of the world including the US. It certainly starts to look like the pace is picking up and the unwinding is getting out of control.

CIGA Larry

 

Jim,

In case you’re not yet aware, Canada has announced public consultation (closing SEP 12) on what the bail-in regime law/regulations should be.

http://www.fin.gc.ca/n14/14-099-eng.asp

Things that caught my attention in the consultation paper include:

1. Confirmation that the D-SIBs (domestic systemically important banks) consist of all six of Canada’s major banks.

2. The potential for considering a failed bank’s depositors’ insured accounts being separated into a separate company from the failed bank’s other assets while noting that none of the six are currently structured in a subsidiary-type legal organization (which, e.g., could facilitate insulating their brokerage businesses from the bank’s banking activities).

Best regards,
CIGA Bill

Posted at 11:47 AM (CST) by & filed under Bill Holter.

Bill Holter for Miles Franklin

Dear CIGAs,

"Money as we know it…will simply disappear".  Could this really happen?  I think that it can and believe that it will in some fashion.  This is a huge statement and one that certainly needs some explaining.  Before getting to this, I want to relate to you a couple of questions I received this past week and pass along a quote that is very pertinent, and in my opinion almost an exact roadmap to what we will soon experience.

  First, I was asked by a new client, "I don’t understand, if the markets and banks close, how will I sell my gold and who will have money to buy it?".  This is a good question with no set in stone answer because once panic sets in there will be so many parts literally moving at the speed of light.  Let’s look at a couple of historic events to get a little bit of perspective.  After Archduke Ferdinand was shot in 1914, World War I commenced and our (U.S.) stock market was closed for nearly 6 months.  Money in the U.S. back then was either gold coin or "dollars" which were receipts for gold coin, "money" still circulated even though the stock market was closed.  Stocks circulated privately between individuals as certificates were signed over from one party to another in exchange for a real item or a service.

  Another historic event was back in May of 1931 when the Austrian bank Credit Anstalt failed.  This was a black swan event in a series that led to many banks around the world folding and what drove the U.S. and world economy deeper into depression.  A description of the affair after the fact by Lord Revelstoke (Barings Bank) was; "It was amazing, how, in a fortnight, the credit system we had spent decades building……collapsed".  Our banking system saw many failures and was closed for a time but again, money remained and still changed hands.  But remember, "money" was different back then, it was "real" whereas today it more resembles Monopoly money.

  Back to the original question, "how will I sell my gold and to whom"?  Gold (and silver) "ARE" money themselves.  They are a store of value, they have "worth" on their own as opposed to dollars, euros, yen or any other paper currencies.  The paper currencies have "value" because a government "says" it has value and enforces what they say with legal tender laws.  Gold and silver need not be "sold" for currency, they may instead be exchanged for goods or services during a time of stress.  Actually, the part of the question that asks "who will have the money to buy it?" can be answered in one word, "you".  YOU will have the "money" that may be retained or "spent" at your discretion, worrying about who will accept it during a crisis and after is not necessary.

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Posted at 3:57 PM (CST) by & filed under In The News.

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Jim Sinclair’s Commentary

Hit the pension funds to build the highways. This is a can that is reaching the end of the road.

How is Congress paying for the short-term Highway Trust Fund fix?
August 1, 2014, 10:54 AM

Congress is providing $11 billion to prevent a 28 percent reduction in federal highway and mass transit spending at the peak of the summer construction season. The Senate passed a House-written bill to augment federal gasoline and diesel fuel taxes for keeping the federal Highway Trust Fund solvent through next May. The bill raises the money through:

– Pension "smoothing." Raises $6.4 billion by allowing companies to reduce the amount that they contribute to their pension funds now and make up for it later. Since pension contributions are tax deductible, companies would owe more tax revenue in the next few years as more of their earnings are taxed. But in the later years, they would be able to claim higher deductions from larger contributions to their pension funds, costing the government revenue. Over time, the pension measure doesn’t raise revenue. But over the next 10 years – the time frame used to estimate the cost of legislation – it does. Critics warn it could cost taxpayers in the long run if federally insured pension plans can’t meet their obligations and the government’s Pension Benefit Guaranty Corp. has to cover them.

– Customs user fees. Raises $3.5 billion by extending for one year – through 2024 – various user fees paid to the Customs Service for goods, vehicles and people entering the U.S. Critics say it’s a gimmick that allows lawmakers to spend the money now and not pay it back for 10 years.

– Leaking underground storage tanks. Transfers $1 billion from an overfunded trust fund established to pay for cleaning up sites fouled by pollution from leaking underground storage tanks, including those at gas stations. Most problem sites have been cleaned up and the leaking tanks fund runs a surplus of about $200 million a year.

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Jim Sinclair’s Commentary

There are two sides to sanctions – geopolitical pressure and self injury.

Russia sanctions risk British jobs, warns JCB boss
By Ben Wright
9:00PM BST 03 Aug 2014

One of the UK’s most influential businessmen has hit out at European Union and US sanctions against Russia, claiming that they are ill-conceived and may result in the loss of British jobs.

Lord Bamford, chairman of JCB, said it was “absurd” that his company, a major exporter to Russia and the market leader for construction equipment there, would be hurt by sanctions “coming out of Brussels”. He added that the decisions being made by EU diplomats could put “British jobs at risk”.

Lord Bamford’s comments come days after EU governments decided to impose further economic sanctions against Russia after the downing of Malaysia Airlines flight MH17 in eastern Ukraine last month.

In the latest escalation of the worst tensions between the West and Moscow since the Cold War, the sanctions are aimed at Russia’s oil industry, defence, dual-use goods and sensitive technologies. However, there are growing fears that the sanctions will have knock-on repercussions for the European companies and the region’s economy.

Lord Bamford said: “Russia is a very important market for JCB and has been for more than 30 years. It appears that JCB is going to be affected by the decision to impose sanctions, but to what extent we are unable to say at the moment.

“We ship both machines and spare parts to Russia and are the market leader for construction equipment in the country. If sanctions restrict sales of machines and spare parts, there will be obviously be a major impact on JCB, which could put hundreds of British jobs at risk.

“It seems absurd that a leading UK exporter, successfully selling machinery to construction companies and farmers in Russia, could be affected so dramatically by EU sanctions coming out of Brussels.”

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Sovereign Man
August 4, 2014
Kiev, Ukraine

There’s nothing more permanent than a temporary government measure, as the old saying goes.

I was reminded of it when I came back to Kiev over the weekend and that the Ukrainian government imposed a series of “temporary” taxes to help the war effort.

And boy does this government need money.

According to both Ukrainian and Russian news sources, several hundred solders were left without weapons or ammunition and crossed the border into Russia.

The Ukrainian news suggests that this was a forced withdrawal after being routed by rebel forces. The Russian news suggests that the troops were seeking asylum, no doubt tired of war.

So the Ukrainian government is in a hurry, trying to raise at least $1 billion (a lot of money here).

They’ve jacked up wage taxes, natural resource taxes, and even taxes on farming exports.

But even if they collect the money they’re aiming for, Ukraine and its government are in a serious pinch.

For the last few months, even before the turmoil began, Ukraine has been in an inflationary cycle. Both retail and asset prices were spiraling higher.

Now they’ve entered a stagflationary period. The currency has gone into freefall. Unemployment is rising. The economy is contracting (6% by phony government estimates). And inflation is a whopping 19%… and rising.

These people are getting abused. And the worst is yet to come.

The banking system is borderline insolvent. The head of the local Citigroup branch here said that the non-performing loan ratio in Ukraine is as high as 40%.

And potentially up to 4% of all bank assets are now locked down in Crimea, which may or may not even be part of Ukraine any longer.

If the banking system collapses (and many here suspect it will), this place will become unglued. Asset prices will collapse, yet retail prices will surge even higher.

I can already see it on the street; so many businesses have closed. Hopeless unemployed youths are now roaming the city or joining the war effort.

And the entire populace has been mobilized to support the fight.

Of course, it’s pretty damn easy to cheer on the bloodshed when it’s not your blood. War can seem glorious when you only have to read about it in the newspapers.

There’s so much more I need to tell you about—the only way for me to capture this was in another podcast, probably the most emotional I’ve ever done.

Come listen for yourself:

http://www.sovereignman.com/podcast/podcast-014-dulce-et-decorum-est-pro-patria-mori-14818/

Until tomorrow,
Simon Black
Senior Editor, SovereignMan.com

Ukrainian troops cross into Russia to avoid fighting, talks underway
BY NATALIA ZINETS AND RICHARD BALMFORTH
KIEV Mon Aug 4, 2014 12:53pm EDT

(Reuters) – Ukraine said on Monday it was in talks with Moscow over the return of 311 Ukrainian soldiers and border guards who had been forced by fighting with separatists to cross into Russia, but Russian border authorities said the troops were seeking asylum.

Both sides seemed set to use the fate of the troops to score propaganda points as Ukrainian government forces extended steady gains it has made against the pro-Russian separatists since a Malaysian airliner was downed over a rebel-held area on July 17.

Ukrainian defence spokesman Andriy Lysenko said a group of soldiers and border guards, who had been caught between the Russian border to the east and rebel positions in the west, had crossed into Russia in the early hours of Monday.

He put their number at 311, telling a news briefing they had retreated into Russia for safety reasons after helping their comrades break through rebel lines.

Kiev, he said, was now negotiating with Russian authorities for their return.

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Jim Sinclair’s Commentary

The only reason for firm car sales is very soft loans.

GM unit gets subpoena over subprime auto loans
WASHINGTON Mon Aug 4, 2014 12:33pm EDT

(Reuters) – The U.S. government is investigating General Motors Co’s (GM.N) auto financing arm over subprime auto loans it made and securitized since 2007, the company disclosed on Monday.

General Motors Financial Co Inc said it was served with a subpoena from the Department of Justice directing it to turn over documents related to underwriting criteria.

The subpoena, which the company said was in connection with an investigation into possible violations of the civil fraud law FIRREA, also asked for information on the representations GM made about the criteria when the loans were pooled into securities.

Financial services firms have paid billions of dollars to resolve investigations under FIRREA into questionable mortgages pooled into securities in the run-up to the financial crisis. The new subpoena could be one of the first public acknowledgements that investigators are also looking at the securitization of subprime auto loans.

FIRREA, the Financial Institutions Reform, Recovery and Enforcement Act, allows the Justice Department to sue over fraud affecting a federally insured financial institution.

Separately, regulators have brought some recent cases against auto lenders over allegations of discrimination.

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Lebanese army advances in border battle with Islamists
BY ALEXANDER DZIADOSZ
OUTSKIRTS OF ARSAL Lebanon Mon Aug 4, 2014 1:14pm EDT

(Reuters) – The Lebanese army advanced on Monday into a border town attacked by Islamists at the weekend in the most serious spillover of the three-year-old Syrian civil war into Lebanon, and the Beirut government said the deadly assault would not go unpunished.

With army reinforcements arriving in Arsal, Prime Minister Tammam Salam, a Sunni Muslim, said there could be no political deal with gunmen identified as members of the Nusra Front and the Islamic State, which has seized parts of Syria and Iraq.

"The only solution proposed today is the withdrawal of the militants from Arsal and its environs," said Salam, the most senior Sunni in the Lebanese government.

Flanked by the rest of the cabinet, Salam accused the militants of seeking to "move their sick practices to Lebanon".

"We confirm that the attack on Lebanese national dignity will not go unpunished," he said.

Lebanon, still rebuilding from its own 1975-1990 civil war, has been buffeted by violence linked to the Syrian conflict, including rocket attacks, suicide bombings and gun battles.

But this was the first major incursion by hardline Sunni militants who have become leading players in Sunni-Shi’ite violence that has unfolded across the Levant, destabilising Lebanon by inflaming its own sectarian tensions.

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Jim Sinclair’s Commentary

Sanctions are going to hurt Europe big time.

Russian sanctions crushing German business
Published time: August 01, 2014 11:20

The West is tightening the financial screws on Moscow, but German companies are already feeling the kickback of a slowing Russian economy and weakening ruble.

Russia is Europe’s third-largest trading partner, so a spluttering Russian economy, exacerbated by the Ukraine crisis, is seriously affecting German companies. In 2013, Germany exported 36 billion euro worth of goods to Russia.

A higher value ruble and inflation risk consumer spending in the region, and are cutting German involvement in the market accordingly.

German sports retailer Adidas lowered financial targets for the next two years, citing conditions in Russia as a major stumbling block.

“The recent trend change in the Russian ruble as well as increasing risks to consumer sentiment and consumer spending from current tensions in the region point to higher risks to the short-term profitability contribution from Russia/CIS,” the company’s financial outlook said.

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Chinese Gold Demand 1063 MT YTD
Total Chinese Reserves Reach 15,000 Tonnes
Published: 04-08-2014 20:32

For ten days I’ve been on vacation without internet, hence I missed one week to report on withdrawals from the Shanghai Gold Exchange (SGE) vaults. Here is a quick overview of what happened in the Chinese gold market in week 29 and 30.

In week 29 (July 14 -18) 32 metric tonnes were withdrawn from SGE vaults and in week 30 (July 20 – 25) 33 tonnes were withdrawn. Both lower than the year to date average of 35.4 tonnes, but higher than the five week moving average trend (5 WMA). In total 1063 tonnes has been withdrawn year to date. The premium on gold at the SGE is still hovering around zero. 

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Patient in NYC being tested for Ebola at Mount Sinai Hospital
By TINA SUSMAN

New York’s Mount Sinai Hospital was performing tests Monday on a patient who had traveled recently in West Africa, where an Ebola outbreak has killed hundreds of people, after he arrived at the emergency room with symptoms of the disease.

The hospital said in a statement that he had a high fever and gastrointestinal symptoms when he came to the emergency room in the early hours of Monday. He was put in isolation until test results are back.

"The patient had recently traveled to a West African country where Ebola has been reported," the hospital said. "The patient has been placed in strict isolation and is undergoing medical screenings to determine the cause of his symptoms. All necessary steps are being taken to ensure the safety of all patients, visitors and staff.

"We will continue to work closely with federal, state and city health officials to address and monitor this case, keep the community informed and provide the best quality care to all of our patients."

An Ebola outbreak in four West African countries has killed hundreds of people and sickened more than 1,000, including two American aid workers in Liberia. One of them, Dr. Kent Brantly, was flown back to the United States on Saturday and is being treated at Emory University Hospital in Atlanta. The other, Nancy Writebol, is expected to be brought to Atlanta on Tuesday.

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Posted at 1:00 PM (CST) by & filed under Jim's Mailbox.

Jim,

I am sure there is no significance in the fact that the US debt has risen over $7trillion since "O" took office.

CIGA Larry

$7,060,259,674,497.51–Federal Debt Up $7 Trillion Under Obama
August 4, 2014 – 4:04 AM
By Terry Jeffrey

(CNSNews.com) – The total federal debt of the U.S. government has now increased more than $7 trillion during the slightly more than five and a half years Barack Obama has been president.

That is more than the debt increased under all U.S. presidents from George Washington through Bill Clinton combined, and it is more debt than was accumulated in the first 227 years of this nation’s existence–from 1776 through 2003.

The total federal debt first passed the $7-trillion mark on Jan. 15, 2004, after President George W. Bush had been in office almost three years.

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