In The News Today

Posted at 8:06 PM (CST) by & filed under In The News.

Dear CIGAs,

Not exactly politically correct, but absolutely true.

jose

 

Jim Sinclair’s Commentary

This is exactly what General Tommy Franks said in different words when he retired as General in charge in Iraq years ago.

It was carried in an interview in Cigar Aficionado. We posted it here and it is on the compendium as well.

"Must we, under the happy hope of a false tranquility, sacrifice to the people in power the public welfare, and under vain pretense of preserving the peace, abandon the empire to robbers who would plunder it"
— Helvetius

Jim Sinclair’s Commentary

This is a teaching video that takes only 3 minutes of your time.

While listening to it keep in mind that the USA is the largest debtor nation. The economic recovery is more MOPE than real & sustainable.

Jim Sinclair’s Commentary

Meet Buddy, the newest addition to the gang.

IMG_3501

 

Jim Sinclair’s Commentary

Euro intervention has now occurred four times between $1.215 and $1.225.

The link between the euro and gold’s price is loosening again, favoring gold. Let’s keep focus on that relationship.

There is heavy euro selling between $1.25 and $1.26. The following story might just be a vehicle for the opposite.

China denies report of euro review.
China denied a report that it’s reviewing its foreign exchange holdings of euro assets, calling such speculation "groundless." “Europe has been, and will be one of the major markets for investing China’s exchange reserves,” said the State Administration of Foreign Exchange. Euro

Jim Sinclair’s Commentary

Please consider subscribing to John’s excellent service. His explanations are contained in his subscriber only essays.

– Gross Domestic Income Continues Showing Slower Growth than Gross Domestic Product 
– Massive Revisions to Durable Goods Orders 
– Employment Set to Retrench Anew (Net of Census Impact)

"No. 298: GDP and New Orders for Durable Goods Revisions "
http://www.shadowstats.com/

Jim Sinclair’s Commentary

Note Libor rose again this morning. Until Libor stabilizes at a given range a lock up on credit markets in Europe is still a great risk.

Foreign U.S. Commercial Paper Issuance Falls Most in 10 Months
By Bryan Keogh and Christopher Condon

May 27 (Bloomberg) — U.S. commercial paper outstanding sold by foreign financial companies and their domestic units fell the most in 10 months as fund managers trim holdings of the short-term debt issued by European banks.

Total debt has dropped $18.6 billion, or 4.8 percent, in May to an eight-month low of $365 billion, the Federal Reserve said today on its website. The amount outstanding has declined for the past four weeks.

Banco Bilbao Vizcaya Argentaria SA, Spain’s second-biggest bank, has been unable to renew about $1 billion of commercial paper this month, the Wall Street Journal reported yesterday, highlighting investor concerns that Europe’s sovereign debt crisis will saddle banks with losses.

That reflects “how fearful” U.S. fund managers are of BBVA as a counterparty risk, compelling the bank to turn to cheaper regional financing ,Andrew Lim, an analyst at Matrix Corporate Capital LLP in London, wrote today in a note to clients.

“The funds are merely shortening maturities and letting paper roll off, rather than fleeing,” said Peter Crane, president of Crane Data LLC, a money-fund research firm in Westborough, Massachusetts.

More…

Jim Sinclair’s Commentary

Now these two articles demonstrate clearly how the US legislative works.

Feds Issue Terror Watch for the Texas/Mexico Border
By Jana Winter
Published May 26, 2010

The Department of Homeland Security is alerting Texas authorities to be on the lookout for a suspected member of the Somalia-based Al Shabaab terrorist group who might be attempting to travel to the U.S. through Mexico, a security expert who has seen the memo tells FOXNews.com.

The warning follows an indictment unsealed this month in Texas federal court that accuses a Somali man in Texas of running a “large-scale smuggling enterprise” responsible for bringing hundreds of Somalis from Brazil through South America and eventually across the Mexican border. Many of the illegal immigrants, who court records say were given fake IDs, are alleged to have ties to other now-defunct Somalian terror organizations that have merged with active organizations like Al Shabaab, al-Barakat and Al-Ittihad Al-Islami.

In 2008, the U.S. government designated Al Shabaab a terrorist organization. Al Shabaab has said its priority is to impose Sharia, or Islamic law, on Somalia; the group has aligned itself with Al Qaeda and has made statements about its intent to harm the United States.

In recent years, American Somalis have been recruited by Al Shabaab to travel to Somalia, where they are often radicalized by more extremist or operational anti-American terror groups, which Al Shabaab supports. The recruiters coming through the Mexican border are the ones who could be the most dangerous, according to law enforcement officials.

Security experts tell FOXNews.com that the influx of hundreds of Somalis over the U.S. border who allegedly have ties to suspected terror cells is evidence of a porous and unsecured border being exploited by groups intent on wrecking deadly havoc on American soil.

More…