In The News Today

Posted at 7:59 PM (CST) by & filed under In The News.

Sinclair34

Thought For The Weekend

Note that when the media or Wall Street speaks of the financial problems of US they are discussed in terms of their State Budget Deficits. When States of the EU are discussed they are presented in terms of the amount of debt outstanding.

When comparing debt outstanding between US States and the EU States you will see the problems in the US dwarf that of the EU.

This is going to explode into the consciousness of the marketplace this year as soon as the big boys are satisfied with their long gold, short the US dollar and long the euro positions.

Gold will trade at $1650 by January 14th 2011. If I am wrong, gold will be much higher by the end of June 2011 according the master cyclical analyst, Martin Armstrong.

Don’t let the in-your-face manipulation of paper gold fool you.

 

Jim Sinclair’s Commentary

More outrageous over-valuations of assets for sure. This is the start of the weekend for bank failures.

Truth be known, thousands of US banks are broke if they had to apply fair accounting to their assets that are now valued by sick computer cartoons.

Bank Closing Information – July 23, 2010
These links contain useful information for the customers and vendors of these closed banks.

Community Security Bank, New Prague, MN
Thunder Bank, Sylvan Grove, KS
Williamsburg First National Bank, Kingstree, SC
Crescent Bank and Trust Company, Jasper, GA
Sterling Bank, Lantana, FL

http://www.fdic.gov/

Jim Sinclair’s Commentary

Wall Street rescued. Far Cats makes billions.

Close to $4 trillion is involved in making sure the rich get richer while Rome burns.

20% of Americans hit by major economic loss
By Jeanne Sahadi, senior writerJuly 22, 2010: 12:21 PM ET

NEW YORK (CNNMoney.com) — A new study released Wednesday estimates that 20% of Americans suffered a significant economic loss last year – the highest level in the past 25 years.

The new Economic Security Index looks at the interaction of three key variables that have a direct bearing on a person’s economic security: income loss, medical expenses and debt.

The index, which tracks data since 1985, shows that economic insecurity has risen across all groups, not just among low-income families and those without much education.

The index was constructed by Yale political scientist Jacob Hacker and a team of researchers, and the project was funded by the Rockefeller Foundation.

The ESI defines people as economically insecure when their situation meets two criteria. First, within a year’s time they have lost 25% or more of their available gross income. Available gross income is the money they have left over after paying for medical costs and debt. Second, they don’t have enough in an emergency fund or other liquid reserves to make up the difference.

More…

Jim Sinclair’s Commentary

Linking to a basket of currencies only slows down the impact of the violent currency market.

It also downgrades the dollar further in international usage as the reserve currency of mistake.

China may switch to currency basket for forex rate
Central bank official suggests move away from dollar as benchmark
July 23, 2010, 2:14 a.m. EDT
By MarketWatch

LOS ANGELES (MarketWatch) — A top Chinese central bank official suggested switching away from the U.S. dollar as a benchmark for the yuan’s foreign-exchange rate, switching instead to a basket of currencies, according to remarks published Thursday.

In comments posted to the People’s Bank of China Web site, the central bank’s Deputy Gov. Hu Xiaolian said using a basket of currencies from the nation’s top trading partners would allow the Chinese yuan to better reflect trading fundamentals.

"Compared with pegging to a single currency, the exchange-rate regime with reference to a basket of currencies will help adjust exports and imports, current account, and balance of payment in a more effective manner," she said.

China’s central bank currently sets a "central parity rate" against the U.S. dollar each day, with that day’s trading range confined to 0.5% above or below that level.

But Hu said focusing on the dollar-yuan rate ignored China’s bigger trade picture.

More…

Jim Sinclair’s Commentary

What more proof do you want that the cartoon given to you today, commissioned by JSMineset, is ABSOLUTELY correct?

Fed Would Act if Needed, Chairman Says
By SEWELL CHAN
Published: July 22, 2010

WASHINGTON — A day after signaling that he had no immediate plans to take further steps to prop up the economy, the Federal Reserve chairman said Thursday that he was prepared to do so if the outlook worsened.

The chairman, Ben S. Bernanke, who had described the nation’s economic outlook as “unusually uncertain” in presenting the Fed’s semiannual monetary policy report to Congress on Wednesday, was somewhat more explicit about his thinking in the second day of testimony.

“We are ready, and we will act if the economy does not continue to improve, if we don’t see the kind of improvements in the labor market that we are hoping for and expecting,” Mr. Bernanke told Representative Melvin L. Watt, Democrat of North Carolina, at a hearing of the House Financial Services Committee.

“We have certainly utilized our principal tools, our most obvious conventional tools, anyway,” Mr. Bernanke added. “And so we would have to step into new areas. I do believe that there are things we could do, and we are considering all options.”

Mr. Bernanke, who called unemployment “the most important problem we have right now,” offered additional details in evaluating the steps the Fed could take, having exhausted the usual tools of monetary policy.

More…

Jim Sinclair’s Commentary

Here is a YouTube video worth checking out.

Financial Services Hearing July 22 2010

Jim Sinclair’s Commentary

The EU Banking Stress Test is a total Joke. Only trading books are being tested, not bank inventory and operations.

In order to fail you really have to be crushed. Still 9 banks have failed.

This is simply more MOPE designed to mislead.