In The News Today

Posted at 11:13 AM (CST) by & filed under In The News.

Dear CIGAs,

Here is one guy who is totally calm about the elections this weekend in Greece.

He may be the only one.


Jim Sinclair’s Commentary

As I said yesterday, the West is so ready to bomb Syria, but this time an Egypt redux might have additional and unexpected costs.

Russia and Iran Accuse the United States of Arming Syrian Rebels
Published: June 13, 2012

TEHRAN — Russia and Iran, Syria’s staunchest allies, on Wednesday accused the United States of sending weapons to opposition forces battling President Bashar al-Assad and his army.

Iran’s foreign minister Ali Akbar Salehi, and his Russian counterpart, Sergey V. Lavrov, told reporters that it was the United States and its allies — not Russia and Iran — that are seeking to destabilize Syria.

“The U.S. is sending weapons to the opposition in Syria, which are being used against the government of that country,” Mr. Lavrov said.

Mr. Salehi said that besides weapons, foreign troops had been sent into Syria to aid the armed opposition to Mr. Assad. “They have some of their forces operating inside Syria,” Mr. Salehi said, without specifically naming the United States or any other country. “They say they want to prevent massacres but at the same time send weapons — these are double standards.”

The Russian foreign minister reiterated Russia’s longstanding denial of American accusations that his country is sending helicopter gunships to Syria, which will help government troops to fight the opposition. Mr. Lavrov said that Russia is “honoring military contracts” with the Syrian government, but only sending “antiaircraft weapons.”



Jim Sinclair’s Commentary

QE to infinity is as certain as the denials before it is in the sunlight.

Rasmussen: U.S. Consumer Confidence Hits Five-Month Low
Tuesday, 12 Jun 2012 01:20 PM
By Forrest Jones

Consumer confidence is slipping in the U.S., a Rasmussen Reports survey shows.

The Rasmussen Consumer Index, which measures consumer confidence on a daily basis, fell three points on June 9 to its lowest level of the past five months.

"At 84.6, consumer confidence is down four points from a week ago, down five points from a month ago and down eight points from three months ago," Rasmussen reports.

Confidence has not been lower since February.

Investor confidence isn’t faring much better.

"The Rasmussen Investor Index fell three points to 93.7. Investor confidence is down a point from a week ago, down four points from a month ago and down twelve points from three months ago," Rasmussen adds.

About a third of the respondents, or 33 percent, rate their own finances as good or excellent, while 41 percent say fair and 23 percent poor.



Jim Sinclair’s Commentary

The hippo is debt. The legs belong to the Western world economy.


Jim Sinclair’s Commentary

"Endless" is another word for "to infinity."

Analysis: Endless QE? $6 trillion and counting
By Mike Dolan
LONDON | Wed Jun 13, 2012 4:03am EDT

(Reuters) – Many more years of money printing from the world’s big four central banks now looks destined to add to the $6 trillion already created since 2008 and may transform the relationship between the once fiercely-independent banks and governments.

As rich economies sink deeper into a slough of debt after yet another wave of euro financial and banking stress and U.S. hiring hesitancy, everyone is looking back to the U.S. Federal Reserve, European Central Bank, Bank of England and Bank of Japan to stabilize the situation once more.

What’s for sure is that quantitative easing, whereby the "Big Four" central banks have for four years effectively created new money by expanding their balance sheets and buying mostly government bonds from their banks, is back on the agenda for all their upcoming policy meetings.

Government credit cards are all but maxed out and commercial banks’ persistent instability, existential fears and reluctance to lend means the explosion of newly minted cash has yet to spark the broad money supply growth needed to generate more goods and services.

In other words, electronic money creation to date – whether directly through bond buying in the United States or Britain or in a more oblique form of cheap long-term lending by the ECB – is not even replacing what commercial banks are removing by shoring up their own balance sheets and winding down loan books.


Jim Sinclair’s Commentary

What direction is this taking you ask? The answer is QE to infinity.

Euro zone OK with looser terms for Greece: report
June 13, 2012, 1:36 a.m. EDT

The euro zone wants to negotiate a loosening of the terms of Greece’s fiscal consolidation program, German newspaper Financial Times Deutschland reports Wednesday.

Any new Greek government will demand changes to the country’s savings program, regardless of the outcome of Sunday’s general elections, the newspaper reports, citing people close to the matter.

If other member states want Greece to remain in the euro zone, they won’t be able to refuse such negotiations, FTD reports.

The Troika–comprising the European Commission, European Central Bank and International Monetary Fund–is proceeding on the assumption that Greece has already violated the terms of its reform plan, the newspaper reports, citing people close to the matter.

The Troika will confirm at its next visit to Greece that the reform program hasn’t been fulfilled, German Finance Minister Wolfgang Schaeuble told politicians at a meeting of his party’s parliamentary group, FTD reports.