The US is headed towards the same economic conditions of the second leg of the Great Depression. A 1933-1934 type unwind is coming. The only argument for a sustainable equity market in the Western World is the Weimar case.
All currencies are headed in one direction: down in storehouse of value character.
Gold is the only storehouse of value. Gold has demonstrated that clearly even in the face of the Crimex and the gold banks fighting it.
Respectfully,
Jim


Dear Comrades In Golden Arms,
Doesn't it get tiring to hear the propaganda of government and business over the airwaves telling us exactly what isn't correct? I started this morning on the note of the Fed going to drain one trillion by negotiations with money funds which I know is absolute bunk. Then I see two events today of blatant QE while I hear how the Fed is going to drain huge amounts of the liquidity that was added to the market. Coming up next will be the EU having a plan to bailout Greece, but the ECB will not say what that plan is because they have no plan, only intentions. Some people have observed that I know what gold is doing without looking because I feel it. Well, I do. Right now I feel totally frustrated by the degree of misinformation spewing out of every form of media. Nobody can be that stupid. They are either all kissing up, or there is a Propaganda Czar who runs it. I will go with the former and a tad of the later plus the fact that Wall Street is a major investor in F-TV. Is it possible that gold is fed up with the lies and distortions that are so apparent Mr. Fred barks at the TV? It is, and I sense it happened today. We have been discussing over the last few days the fact that no currency on the planet is any longer a storehouse of value. We are headed into a system of taking a ticket to get bailed out sovereign wise. The relationship between leading currency and gold is never going to be cancelled, but it is loosening. Gold is your only good insurance policy. Who knows, we may be long gold for a much greater period of time and price than I anticipated in 2001. Respectfully yours,
Jim



Jim Sinclair’s Commentary
Change the words “could be” to “are.”
Think the PIGS Are in Trouble? These 7 U.S. States Could Be Heading for Something Worse
Gregor Macdonald

The inevitable coming of the sovereign debt panic finally engulfed Europe this week as the derisively (or perhaps affectionately) named PIGS spilled their slop on the continent. But Portugal, Ireland, Greece, and Spain are hardly worthy of so much attention. In truth, they are little more than the currently favored proxies among the leveraged speculator community (cough) for the larger problem of all sovereign debt. Indeed, the credit default swaps on these smaller European satellite states were not alone this week in making large moves higher. UK sovereign risk rose strongly, and so did US sovereign risk. With a downgrade warning from Moody’s to boot.
Notable among three of the PIGS are their relatively small populations, and small contributions to either world or European GDP. While Spain has a population over 45 million, Portugal and Greece have populations roughly equal to a US state, such as Ohio–at around 10 million. And Ireland? The Emerald Isle has a population similar to Kentucky, at around 4 million. While the PIGS are without question a problem for Europe, whatever problems they present for Brussels are easily matched by the looming headache for Washington that’s coming from large US states such as California, Florida, Illinois, Ohio, and Michigan.
I’ve identified seven large US states by four criteria that are sure to cause trouble for Washington’s political class at least for the next 3 years, through the 2012 elections. These are states with big populations, very high rates of unemployment, and which have already had to borrow big to pay unemployment claims. In addition, as a kind of Gregor.us kicker, I’ve thrown in a fourth criteria to identify those states that are large net importers of energy. Because the step change to higher energy prices played, and continues to play, such a large role in the developed world’s financial crisis it’s instructive to identify those US states that will struggle for years against the rising tide of higher energy costs.
First, let’s consider a large state that didn’t make my list. Texas didn’t make the list because its unemployment rate has not risen high enough to reach my cutoff: a state must register broad, U-6 underemployment above 15%, and currently Texas has only reached 13.7% on that measure. Also, Texas’s total energy production nearly perfectly matches its total energy consumption. Of course, Texas has indeed had to borrow more than a billion dollars so far to pay unemployment claims, thus technically bankrupting its unemployment trust fund. That meets my criteria. But, it’s instructive to note Texas’ energy production capacity in this regard, as that produces dollars. And one of the big reasons US states are under so much pressure, like their European counterparts, is that they cannot print currency. Being able to produce oil and gas is the next best thing to printing currency. So, Texas doesn’t make my list.
More…


Jim Sinclair’s Commentary
Be prepared. The Money Vultures will be circling the dollar soon.
Credit Suisse Declares the U.S. a Riskier Investment Than Indonesia By Megan Carpentier 2/12/10 1:47 PM
Amid fears that Switzerland might come to an agreement with the United States on banking privacy and tax evasion disclosures, Credit Suisse issued a report identifying those countries it determined to have the highest risks of default on their sovereign debts. Number 16 on the list was the United States, based primarily on its 2009 budget deficits and government debt.
Countries ranked less likely to default include corruptocracy Kazakhstan, less-than-reform-minded Indonesia, the debt-ridden Philippines and violence-ridden Colombia. By comparison, U.S. Treasuries prices are up today despite a new issuance this week.
More…


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Cash-Strapped Local Govs Wary of Bankruptcy

Welcome to Slumburbia


This Time Is Different, It's Global!


Ponzi Scheme


Big Government's Big Shortfall


The Fed's "Exit Plan" is Just Another Secret Gift to Wall Street


Think PIGS are in Trouble? These Seven US States Could be Headed for Something Worse
http://seekingalpha.com/article/187051-think-the-pigs-are-in-trouble-these-7-u-s-states-could-be-heading-for-something-worse?source=article_sb_popular


And finally CHANGE YOU CAN BELIEVE IN...

Notice from Committee for Economic Value of Individual LivesDue to the current financial situation caused by the slowdown in the economy, Congress has decided to implement a scheme to put workers of 50 years of age and above on early retirement, thus creating jobs and reducing unemployment.This scheme will be known as RAPE (Retire Aged People Early).Persons selected to be RAPED can apply to Congress to be considered for the SHAFT program (Special Help After Forced Termination).Persons who have been RAPED and SHAFTED will be reviewed under the SCREW program (System Covering Retired-Early Workers).A person may be RAPED once, SHAFTED twice and SCREWED as many times as Congress deems appropriate.Persons who have been RAPED could get AIDS (Additional Income for Dependents & Spouse) or HERPES (Half Earnings for Retired Personnel Early Severance).Obviously persons who have AIDS or HERPES will not be SHAFTED or SCREWED any further by Congress.Persons who are not RAPED and are staying on will receive as much SHIT (Special High Intensity Training) as possible. Congress has always prided themselves on the amount of SHIT they give our citizens..Should you feel that you do not receive enough SHIT, please bring this to the attention of your Congressman, who has been trained to give you all the SHIT you can handle.
Sincerely,
DirectorThe Committee for Economic Value of Individual Lives (E.V.I.L.)