In The News Today

Posted at 3:08 PM (CST) by & filed under In The News.

My Dear Friends,

Talk of further Fed easing if the economy continues to weaken put gold through the technical overhead resistance, driving the algorithms bullish as gold sets up for $1600.

There is no question the economy is going into a double dip which will be lower on the second dip. Quantitative easing will continue with vigour.

Gold is setting up for the $1600- $1650 battle royal.

Regards,
Jim

 

Jim Sinclair’s Commentary

Who needs nuclear weapons when you can simply downgrade and bust a country?

Ireland Bonds Downgraded
By THE NEW YORK TIMES
Published: July 12, 2011

Moody’s Investor Service downgraded Ireland’s government bonds on Tuesday, saying the country was likely to need another bailout before its finances recover.

The credit-ratings company cut the bonds by one notch, to Ba1 from Baa3, to junk status, raising the nation’s cost of borrowing money.

The move was certain to raise investor fears that the debt crisis overwhelming the Greek economy would spread. Last week, Moody’s similarly cut Portugal’s credit ratings, and the economies of Italy and Spain also were seen by financial markets as vulnerable.

“Ireland is likely to need further rounds of official financing before it can return to the private market,” In its downgrade, Moody’s said in its downgrade assessment. It also cited “the increasing possibility that private sector creditor participation will be required as a precondition for such additional support,” in line with recent European Union government proposals.

“Although Moody’s acknowledges that Ireland has shown a strong commitment to fiscal consolidation,” Moody’s added, the “implementation risks remain significant, particularly in light of the continued weakness in the Irish economy.”

More…

 

 

Jim Sinclair’s Commentary

The Chinese and Down Under. A new concept in Riminbi (Yuan) dealings.

It’s yuan for the money for Twiggy Forrest
Matt Chambers
From: The Australian
July 13, 2011 12:00AM

IN the terrace room of Perth’s Hyatt yesterday, Yao Yudong, deputy director-general of monetary policy at the People’s Bank of China, was waxing lyrical about the “win-win” of China-Australian co-operation and the potential for trading in China’s yuan.

IN the terrace room of Perth’s Hyatt yesterday, Yao Yudong, deputy director-general of monetary policy at the People’s Bank of China, was waxing lyrical about the “win-win” of China-Australian co-operation and the potential for trading in China’s yuan.

It was a speech to the Chinese-backed Boao forum that was sprinkled with high praise for Fortescue Metals Group chief executive Andrew “Twiggy’ Forrest. Mr Yao went on to reveal Mr Forrest’s plan for pricing contracts in yuan and then turned to Mr Forrest, in the audience, and said: “Would you please say something, chairman?”

Mr Forrest, who will become Fortescue chairman next week, got up chuckling. “Thank you for the kind, generous and of course spontaneous invitation,” he said.

“And of course FMG’s commercial in-confidence transparency extends to all of you,” he told the laughing audience.

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