In The News Today

Posted at 11:50 AM (CST) by & filed under In The News.

My Dear Friends,

Please note that Canada and Taiwan are discussing forming a free trade association. Should this come to fruition it would be a victory for the Looney and another step away from the US dollar in settlement in international transactions.



Jim Sinclair’s Commentary

Here is the latest from John Williams’

– Activity in Housing and Construction Remains Stagnant Near Historic Lows

"No. 425: February Housing Starts, New and Existing Home Sales"



Jim Sinclair’s Commentary

All trends start in California and work their way East.



Jim Sinclair’s Commentary

Others share my view.

Africa’s fast growth draws private equity
Low penetration means little competition in lucrative market
Published: 2012/03/22 07:34:43 AM

PRIVATE equity investors are making a beeline for markets in SA and sub-Saharan Africa, where they see opportunities in growth sectors such as consumer products, telecoms and financial services, Ernst & Young says in a report released this week.

The report says the investor interest is mainly due to high economic growth rates not seen on the continent in decades.

Ernst & Young says growth domestic product growth across Africa is expected to average 5% over the next 10 years, with Ghana, Ethiopia and Uganda projected to exceed 7% a year.

However, given a low penetration of private equity in sub-Saharan Africa — just 0,11% — the reports says, "there is less competition for deals and investment opportunity". The report reviewed the outlook for the global private equity sector.

SA, which has the largest economy in Africa, is the region’s largest private equity market, says Jeffrey Bunder, global private equity leader at Ernst & Young.



Jim Sinclair’s Commentary

Didn’t financial TV tell us we are in a major recovery in real estate? QE will go to infinity.

According to the Commerce Department, New Home Sales for February unexpectedly fell 1.6% to a 313,000 annual pace – the slowest pace since October. Street consensus called for a higher rate of 325,000.


Jim Sinclair’s Commentary

A return and review with Jim.


Jim Sinclair’s Commentary

Every day now we are seeing substitutes in international utilization of the US dollar.

Dollar holders are not blind, and this will impact the value of the US dollar in 2012.

China and Australia in $31bn currency swap
By Simon Rabinovitch in Hong Kong and Neil Hume in Sydney

China has signed a $31bn currency swap agreement with Australia, a step towards boosting the renminbi’s profile in developed markets.

Beijing has established nearly 20 bilateral swap lines over the past four years, but Australia ranks as the biggest economy yet to sign such a deal, which analysts said could give a shot in the arm to Beijing’s goal of internationalising its currency.

While central banks normally use swaps to provide liquidity to each other in the event of a financial crisis, China has been using them to lay the groundwork for the renminbi’s slow march into global markets.

In announcing the Rmb200bn/A$30bn ($31bn) deal, the Reserve Bank of Australia said: “The main purposes of the swap agreement are to support trade and investment between Australia and China, particularly in local-currency terms, and to strengthen bilateral financial co-operation.”

It added that there were “increasing opportunities available to settle trade between the two countries in Chinese renminbi and to make renminbi-denominated investments”.


Jim Sinclair’s Commentary

I sold my clearing house for one reason and one reason only. I knew by the nature of the business that I could not control the floor guys and therefore felt one morning I would discover the house was broke. Now add to that customer’s money used by the clearing house to speculate, and it is guaranteed some morning.

CME’s Donohue to step down; Gill named new CEO
By Ann Saphir and Tom Polansek
Mon Mar 12, 2012 6:34pm EDT

(Reuters) – Craig Donohue, CME Group Inc (CME.O)’s chief executive officer since 2004, will step down at year end, to be replaced by current CME president Phupinder Gill, the company said on Monday.

Chairman Terrence Duffy, who has been the face of the company as it navigates the fallout from the failure last October of giant broker MF Global, will take on the additional role of president, the company said.

Donohue, speaking on a conference call with analysts, said his exit was not linked to MF Global’s failure, which has rattled confidence in the futures industry and dealt a blow to the exchange operator’s trading volume.

CME audited MF Global’s books under the industry’s self-regulatory system. Some $1.6 billion in MF Global customer money is still missing.

"MF Global doesn’t factor in at all to my thinking," Donohue said on the call. "I’ve been working my way toward this for quite some time."


Jim Sinclair’s Commentary

India officially has said today that it will continue to purchase Iranian oil.

EU Expands Iran Sanctions
March 23, 2012, 9:44 a.m. ET

BRUSSELS—European Union foreign ministers agreed Friday to add 17 Iranians to its sanctions list for human rights abuses, and also signed off on a legal text that details how they will implement an oil embargo on Iran.

Those individuals targeted by sanctions related to human rights abuses will be subject to a travel ban and asset freeze. The 17 new people added Friday take to 78 the total number of Iranians targeted for abuses. Ministers also extended by a year the human rights sanctions, to April 13, 2013.

At a meeting in Brussels, foreign ministers also agreed a ban on the export of equipment and software to Iran that can be used to monitor or intercept telecommunications.

The list of people to be targeted will be published Saturday in the EU’s official journal.

The foreign ministers also signed off on the legal text that will enforce a major broadening of sanctions on Iran. The EU agreed those sanctions in January in reaction to Tehran’s nuclear program, including a ban on Iranian exports of crude oil, sanctions on its central bank and a ban on trade in gold.


Jim Sinclair’s Commentary

Weekly replacements for international dollar utilization are occurring.

HKMEx: to launch yuan-settled gold, copper futures by July
Fri Mar 23, 2012 8:27am GMT

SHANGHAI, March 23 (Reuters) – The Hong Kong Mercantile Exchange (HKMEx) plans to launch yuan-settled gold and copper futures by July, its president said on Friday, as it looks to tap growing interest in commodities from Chinese investors.

Albert Helmig also told reporters in Shanghai that the bourse would offer yuan-denominated contracts for other industrial metals in the next 12 months.

Appetite for investment in commodities has risen dramatically in China over the last few years on the back of galloping prices, which have also led to more hedging demand from some companies.

HKMEx benefits from the wall of restrictions governing Chinese derivatives trading, which prohibit Chinese nationals from participating in markets outside China and Hong Kong.

China, which keeps a tight grip on its commodities market, also limits financial institutions from investing in commodity futures without special regulatory approval.


"End of the Road" : How Money Became Worthless
MARCH 21, 2012

Click here to watch the video…