In The News Today

Posted at 10:39 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

John Williams’ latest report guarantees QE to infinity. They will even deny what they are doing when they announce they are doing it.

– For Second Month, Household-Survey Employment Fell as Payroll Growth Faltered
– April Unemployment: 8.1% (U.3), 14.5% (U.6), 22.3% (SGS)
– Annual M3 Growth Weakened in April as Velocity Rose
– New Indicator Shows Intensifying Systemic Stress
– Impaired Construction Spending Continued


Jim Sinclair’s Commentary

The gang heads for the club house.


Jim Sinclair’s Commentary

Just a reminder.

Dear Friends,

The European Stabilization Mechanism Treaty due to pass in July this year will take care of whatever money is required by Spain or any other Euroland nations for effective bailout. It starts with $700 billion in capitalization and has an open call for additional capital infusion with no limit placed on these calls and no further agreements required.

New additional capitalization called on by this treaty is mandatory, not elective and therefore will go to infinity.

The member nations have 7 days to pay up when ordered to by the management of the EMS who are protected against any form of attack or litigation to legislation. It will be backed by the US Fed via swaps while the US publicly denies it is adding any capital to the IMF or this new entity, ESM.

It is the mechanism for QE to infinity in Europe.

QE to infinity, properly understood, is debt monetization on steroids. Denials will be legion, but this debt monetization on steroids will not and cannot be avoided.

The advent of the ESM Treaty establishing the European Stabilization Mechanism is economically Earth shaking and recognized by almost no one out there. It cannot be otherwise, it cannot be avoided. It can de denied but it will occur.


Link to original article…

Jim Sinclair’s Commentary

As things stand now, the following is still pending.

Dear CIGAs,

Gold is officially replacing the US dollar June 28th. The cat is out of the bag.

Phil, you are booting any nation that dares to refuse to be legislated by any other body than themselves out of the SWIFT system.

You have officially made gold money. Now what are you going to do, declare economic war on China? They will fire dollars back at you.

You just might end the economic world as you knew it.

The Best Reason in the World to Buy Gold

Have no doubt, emotions generated by short-term price action will be influencing investor decision-making a hundred years from now. We may have substituted iPad for the telegraph over the past hundred years, but we’re still fairly lousy traders as a species. The real world makes decision based on reality rather than perceptions generated by emotions. Well, at least the real world that stays in business. The Chinese are buying gold while the public panics and sells. Nuf said.

Headline: The Best Reason in the World to Buy Gold

"Beijing is planning to avoid U.S. financial sanctions on Iran by paying for oil with gold. China’s imports of the metal are already large, and you can guess what additional purchases are going to do to prices. On the last day of 2011, President Obama signed the National Defense Authorization Act for Fiscal Year 2012. The NDAA, as it is called, attempts to reduce Iran’s revenue from the sale of petroleum by imposing sanctions on foreign financial institutions conducting transactions with Iranian financial institutions in connection with those sales. This provision, which essentially cuts off sanctioned institutions from the U.S. financial system, takes effect on June 28."



Link to original article…



Dear CIGAs,

Young Italians are flocking to become shepherds. The pay is poor and the hours are long, but there is job security, fresh air and as much pecorino cheese as you can eat.


Traditionally the preserve of older men, shepherding has recently attracted 3,000 young Italians, according to the Italian agricultural body.


Jim Sinclair’s Commentary

Think about the value of the HUI declining 35% while gold is trading in the $1600s. That defies logic, and screams manipulation.

The MOPE about higher costs is, as always, a tool of the manipulators.

Chart comment compliments of CIGA Luis Ahlborn Sequeira.



Jim Sinclair’s Commentary

Financial TV just said to ignore the employment numbers as the changes are diminutive or too small to consider.

Employers in U.S. Added Fewer Jobs Than Forecast in April
By Shobhana Chandra – May 4, 2012 5:43 AM MT

Employers in the U.S. added fewer workers than forecast in April and the jobless rate unexpectedly declined as people left the labor force, underscoring concern the world’s largest economy may be losing speed.

Payrolls climbed 115,000, the smallest gain in six months, after a revised 154,000 rise in March that was more than initially estimated, Labor Department figures showed today in Washington. The median estimate of 85 economists surveyed by Bloomberg News called for a 160,000 advance. The jobless rate fell to a three-year low of 8.1 percent and earnings stagnated.

A slowdown in hiring as corporate optimism cools may restrain the wage growth needed to fuel consumer spending, which accounts for about 70 percent of the economy. Federal Reserve policy makers view unemployment as “elevated” and plan to hold borrowing costs low through late 2014.

“The labor market isn’t improving all that much,” Mark Vitner, a senior economist at Wells Fargo Securities LLC in Charlotte, North Carolina, said before the report. “Layoffs have slowed but hiring hasn’t really picked up. The next couple of months are going to be challenging. The Fed’s caution is well-placed.”