In The News Today

Posted at 10:50 AM (CST) by & filed under In The News.

In the epic Ramayana, Ravana lent his ear to the pleasant eulogies from his ministers than the beneficial advice from his brother, Vibeeshana. By exiling his brother and honouring his courtiers, he sealed his own fate. Now many people are pursuing the pleasant over the beneficial and that is the reason for all distress and discontent. Indian Culture has always emphasised the hard and beneficial way; it has always advised the control of one’s senses. However people today follow cultures that cater to the senses and go after momentary and external frills and pleasures. Realize that the car is driven by steering the wheel inside, when this is turned, the outer wheels automatically move. Similarly when you turn the inner wheel, you can progress.
–May 16th, 1966 SSB.


Dear CIGAs,

Gold did what? Well of course it did. Next comes an explosion in the shares.

Don’t you read


My Dear Extended Family,

This is true of any company out there with real value unrealized by the market in a safe political location outside of North America

Please give me a call or email me if you are one of them. I am a ready buyer.

Mining Maven Says Share Slump To Spur Merger Boom
By Liezel Hill – May 28, 2012 10:16 AM ET

Catherine McLeod-Seltzer, one of Canada’s top mining dealmakers, is forecasting an increase in mergers and acquisitions because of a shortage of financing.

Mining stocks are trading close to a three-year low as commodity prices decline on concern that growth is slowing in China, the largest metals consumer. McLeod-Seltzer says that as investors shun equity offerings and banks shy away from making loans, more mine developers will be bought by larger competitors looking to add output and reserves.

“I see these downturns as opportunities,” she said in an interview in Toronto. “The company that’s going to create value for shareholders today is the one that’s not timid.”

McLeod-Seltzer, 52, who sits on the boards of five miners including Toronto-based Kinross Gold Corp. (K), says that during her 28-year career she has raised more than $600 million for new companies searching for mineral riches. She has co-founded exploration startups including Arequipa Resources Ltd., which was bought by Barrick Gold Corp. (ABX) for almost $1 billion after three years, and Peru Copper Inc., sold for about C$776 million ($757 million) within three years of its initial public offering.

‘Like Cockroaches’

“She’s been very effective,” Rob McEwen, founder of Canada’s Goldcorp Inc. (G) and the chief executive officer of Toronto-based McEwen Mining Inc (MUX), said in an interview. “She’s curious, and she’s one of those people who seems to have a good eye for mineral deposits.”

The world of mineral exploration comprises hundreds of ventures in Canada alone that are trying to bring deposits into production. In return for assuming the risk of evaluating and developing projects, often in remote regions, the payoffs, when they come, can be enormous.


Jim Sinclair’s Commentary

This is the harbinger of things to come.

In the new normal now there will be donut lines, not soup lines.

Big Brother wants to eliminate the pensioners so donuts and perhaps sugary drinks are now on the menu along with Wonder Bread.

This is the only answer to Social Security and Medicare. Eliminate the clients.

National Donut Day: Free doughnuts inspired by WWI
National Donut Day celebrates the women who served doughnuts to US troops overseas in the first World War. Get free doughnuts for National Donut Day at Krispy Kreme, Dunkin Donuts, and other chains.
By Schuyler Velasco, Correspondent / June 1, 2012

National Donut Day, which falls every year on the first Friday in June, is, of course, a time to celebrate Homer Simpson’s favorite pastry. But unlike many other national food holidays concocted by the Internet, this one has a real place in history.

Fresh off the heels of Memorial Day, celebrating America’s troops, National Donut Day was created in 1938 to honor another group of wartime heroes: women of the Salvation army who served doughnuts to soldiers during World War I.

But first, let’s get to the free doughnuts. In honor of National Donut Day, Krispy Kreme is offering one free doughnut per customer at participating locations, no purchase necessary. Participating Dunkin’ Donuts locations will give you a free doughnut with the purchase of any beverage. Regional chains celebrating the day include Lamar’s Donuts in the Midwest, which is giving away free doughnuts, and Canadian purveyor Tim Horton’s, which is offering a doughnut with any purchase if you “like” their Facebook page and bring in the printable coupon. Other local doughnut shops around the country are having their own promotions.

In New York’s Madison Square Park, pastrymaker Entenmann’s will be serving the largest box of Entenmann’s doughnuts ever created as part of the festivities. The company will also donate $25,000 to the Salvation Army.


Jim Sinclair’s Commentary

What the hell, freedom of political speech is dead in the USA so why not this also?

The present surveillance of net blogs by our beloved Big Brother should lead to this.

Today we don’t burn books, we pull plugs on the net. We also do not write books anymore, we write blogs.


Jim Sinclair’s Commentary

No matter who is elected, this factor has little chance of changing.


Jim Sinclair’s Commentary

The Skier is descending and each of the illustrations will go down in history as perfectly correct, just like the Formula.

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Job growth falters in May
By Lucia MutikaniPosted 2012/06/01 at 8:36 am EDT

WASHINGTON, June 1, 2012 (Reuters) — Job growth in May was the weakest in a year and employers added far fewer jobs in the prior two months than previously reported, suggesting the economic recovery was faltering.

Employers created a paltry 69,000 jobs last month, the Labor Department said on Friday, the fewest since May last year. Economists polled by Reuters had expected nonfarm payrolls to increase 150,000.

In addition, employers added 49,000 fewer jobs than previously estimated in March and April. The unemployment rate rose to 8.2 percent from 8.1 percent as people flocked into the labor market.

While unseasonably warm weather that brought forward hiring into the winter months has been blamed for the step back in March and April, the latest report hinted at more fundamental weakness in the economy.

It could further shake confidence, coming on the back of a raft of soft regional factory surveys and a worsening of the debt crisis in Europe. Data on Friday also showed China’s vast factory sector lost momentum in May.

Economists have blamed Europe’s prolonged financial crisis and slowing Chinese growth for sluggish factory activity in May, which has evoked memories of the slackening of job growth in the summer of 2011 when the recovery nearly stalled.


Jim Sincl

air’s Commentary

Any part of this is possible post June 2012.

This is what the US Fed is playing chicken with for some PR reason only.


Jim Sinclair’s Commentary

The SWIFT weapon was blown on nothing.

Iran designs alternative system for SWIFT: CBI

Governor of the Central Bank of Iran (CBI) Mahmoud Bahmani says the country has designed and implemented a new system for conducting international transactions.

Bahmani said on Saturday the new system, which has already been activated, would replace Worldwide Interbank Financial Telecommunication (SWIFT)

On March 15, SWIFT CEO Lazaro Campos said in a statement that the society has decided to discontinue offering services to Iranian banks which are subject to financial sanctions imposed by the European Union.

On January 23, the EU foreign ministers approved new sanctions on Iran’s financial and oil sectors, which prevent member countries from importing Iranian crude or dealing with its central bank.

Experts believe that SWIFT’s new action is meant to fully enforce EU sanctions, as global financial transactions are impossible without using SWIFT.

Bahmani rejected reports about a Japanese bank freezing transactions with Iranian banks.


Jim Sinclair’s Commentary

These are the seeds of the end coming in the mirror image dollar rally.

Yuan fetches 12.33 yen at start of Japan, China currency trading
TOKYO, June 1, Kyodo

Direct trading in the Japanese and Chinese currencies started Friday with the Yuan fetching 12.33 yen at the outset, bypassing the U.S. dollar in a development expected to boost trade and investment between Asia’s two biggest economies.

Yen-Yuan trading was previously conducted by referring to their respective exchange rates against the dollar and so was subject to risks associated with fluctuations in the U.S. currency and increased costs to settle trade and investment transactions.

The first direct exchange rate was marked early morning in Tokyo, according to the Bank of Tokyo-Mitsubishi UFJ. It compared with 12.39 yen, the rate calculated via the dollar at Thursday’s close in Shanghai.


Jim Sinclair’s Commentary

You think Greece got out of hand? Watch what happens in the US if the Fed doesn’t move. They will of course, this is an election year.


Jim Sinclair’s Commentary

The next step the financial geniuses have embarked on.

The can no longer be kicked. Whatever plan you have there is but one tool. That tool is QE to infinity.

Time Bomb? Banks Pressured to Buy Government Debt
Published: Thursday, 31 May 2012 | 2:42 PM ET
By: Jeff Cox

US and European regulators are essentially forcing banks to buy up their own government’s debt—a move that could end up making the debt crisis even worse, a Citigroup analysis says.

Regulators are allowing banks to escape counting their country’s debt against capital requirements and loosening other rules to create a steady market for government bonds, the study says.

While that helps governments issue more and more debt, the strategy could ultimately explode if the governments are unable to make the bond payments, leaving the banks with billions of toxic debt, says Citigroup strategist Hans Lorenzen.

"Captive bank demand can buy time and can help keep domestic yields low," Lorenzen wrote in an analysis for clients. "However, the distortions that build up over time can sow the seeds of an even bigger crisis, if the time bought isn’t used very prudently."

"Specifically," Lorenzen adds, "having banks loaded up with domestic sovereign debt will only increase the domestic fallout if the sovereign ultimately reneges on its obligations."