In The News Today

Posted at 3:20 PM (CST) by & filed under In The News.

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"The future belongs to those who prepare for it."
– Ralph Waldo Emerson

Dear CIGAs,

Many commentators will be saying woo unto the future of S&P.

Let us consider for a moment that you are the Chairman of the Federal Reserve who has firsthand knowledge concerning the real condition of the solvency of Western world financial industry.

1. You know that even consideration of curtailing QE because of political pressure would create a collapse of such magnitude it would make the 1930s look like a picnic at the park.

2. There is a rating agency with the proper political leanings in their corporate culture.

You would:

Support the dollar and the long bond the day that Standard and Poors downgrades the USA’s debt while having the caterers arrange the celebration of success for the continuation of "QE to Infinity." Management at the Fed therefore welcomes S&P’s downgrade for if QE does not exist, who will buy at the bond offerings? Keep in mind that QE can be defined as "non-economic bond purchasing."

Regardless, the dollar will continue to move lower long term (into 2015), and rates will now increase, only constrained by the degree of application for "QE to Infinity."

S&P cuts long-term outlook for US debt to negative

The officially recognized, read as not actual, debt burden remains near record levels. Devaluation, or ongoing default, is and always has been the tool used to manage excessive debt and deficits. The secular up trend in gold during Great Depression and today’s Great Recession confirms it. The issuance of debt is so “critical to national interests” that proactive downgrades will be limited in scope and timing despite evolution and intensification of the debt crisis.

Total Credit Market Debt As A% GDP

Headline: S&P cuts long-term outlook for US debt to negative

Standard & Poor’s Ratings Service downgraded its outlook Monday on the United States’ sovereign debt, expressing unprecedented doubts over the ability of Washington to bring the massive federal budget deficits under control in the next three years.

The agency lowered the long-term outlook to "Negative" from "Stable," saying there is a one in three chance it will downgrade the rating on the debt in the next two years.



Jim Sinclair’s Commentary

Remember when? You probably don’t.


Comments made in the year 1955:

“I’ll tell you one thing, if things keep going the way they are, it’s going to be impossible to buy a week’s groceries for $10.00.”


"We need to stay vigilant!!, The government is here for the corporations, not humanity. It’s is we who have to be there for each other."
-CIGA JB Slear


Jim Sinclair’s Commentary

I know, without a doubt, that self reliance is now a major goal to be established. A CIGA who is on this path sent me unique antique apples for grafting on to my trees.

Can you imagine having the same apples growing that the first settlers brought to the new America, or maybe, if I am lucky, apples from Mt. Vernon?