Las Vegas condo...only $7,000.00 does that sound like we are in a recovery to you?

Good News And Bad News
Roger Wiegand - corner
May 13 2010 2:36PM
Good News And Bad News
Good News: The Scramble Is On For Physical Gold.
“This 156-ounce (4.85 kg) gold nugget was found by an individual prospector in Southern California Desert using a metal detector.” -Wikopedia
Bad News: Unemployment Is Skyrocketing
Reports from the Labor Department today tried to polish-up terrible jobless reports with all kinds of numbers tricks and Pollyana talk. Most of the Sheeple and smarter media members and analysts are not buying it. We reported some new predictions this week and they are not pretty. The Ships Of State in the U.S. and in many other nations in Europe are floundering and rudderless. This is not going to end well at all. A fiscal firestorm with the attendant social problems looms. Buckle up your money belt and hunker down for an international systemic hurricane.
Those jobs numbers are totally false. US National unemployment is now 21% and getting worse faster. Jobs are the key to any recovery, which is in fact years away.
America’s residential housing national valuation average has -30% more to fall, which takes 3-5 more years. The worst fallen states have already hit bottom and are beginning to recover like Michigan and other Midwestern states. However, when a housing bottom is finally discovered bottom-feeders step-in to buy houses for next to nothing. Nevada is the worst and continues to crash. We got a report you can buy a brand new two bed, two bath Las Vegas condo for $7,000. There are now 55,000 new ones sitting vacant.
By this fall, 50,000,000 Americans will be on food stamps. With the heavy summer heat we get nasty social problems breaking-out in big cities world-wide with riots and fires. The USA-Mexican border probably goes into open warfare with American troops in later 2010.
Numerous states are ready to go bankrupt. Jobless millions have given-up and are not being properly counted by any measure. We forecast USA national unemployment to average the worst at 35-40% by the end of 2011 or, early 2012. Fictional news will report it’s maybe 12% at worst.
Families are doubling and tripling-up with sometimes only one working adult in a house containing three generations. Frustrations are rising along with tempers and social fallout.
This year, internationally, Europe tanks first in a cascade of failing insolvent nation-states including Greece, Spain, Portugal, Italy, and potentially Ireland and the U.K. Germany returns to the German Mark and dumps the failed Euro and their Euroland affiliations.
Within three years or less we see more intense American capital controls, higher taxes and a US Dollar devaluation. Chances of bank closures and bank runs are escalating. Over 700 US banks are on the watch list and most will crash and burn. Greater Depression II could go on for years. Later, the fallout causes World War III as historically, this is the final conclusion to major depressions and the ultimate way to escape from them.
The US Dollar and American standard of living shall be cut in half over the next few years.
Media jobs reports are a cruel joke. Natural disasters and similar emergencies cannot be managed by FEMA. They are disorganized and broke. Next, we enter the national tornado and hurricane seasons. We better pray we get through it as FEMA cannot that’s for sure.
Worst of all there is no leadership in Washington, D.C. If any is found whatsoever, it’s of the terribly destructive variety.
Now, more than ever, it is important to take the immediate necessary precautions to protect yourself and your families and friends.
Traders and investors should be buying precious metals and select shares right now. In our newsletter we have a great list of trading and investing ideas for you. Meanwhile, you can never go wrong buying physical precious metals and holding them for security. We’ve had a constant run of nearly ten years in gold rising 15% per year so this remains a good trade. In the last twelve months, gold rallied over 34% and is going ever faster.
It’s not going to stop any time soon. In fact, we predict those annual percentages will rise even more and this offers a chance, arriving only once in 25 years on the historical cycles. Good trading! -Traderrog
Roger WiegandEditor Trader Tracks NewsletterThe Jay & Rog Blog at webeatthestreet.com
*****
Roger Wiegand is Editor of Trader Tracks Newsletter for gold, silver and energy traders. Roger provides recommendations for short and longer term traditional stock shares, futures and commodities trading with specifics for individual trades. See webeatthestreet.com for more information


Five Facts You Need to Know About the Financial System


US Posts Weak Jobs Report - Associated Press


Faber Report: Ratings Agencies Partners in Deception


IMF plots world money issuance without accountability, Rickards tells King


US Home Seizures Rose to Record Level - Bloomberg


SEC & Prosecutors Investigate More US Banks- Wall Street Journal


Gold Shines As Investors Hunt For A Safe Haven - China Mining


US Trade Deficit Widens to 1-Yr High- Bloomberg


Jim Sinclair’s Commentary
Short the metals up to their eyeballs? Maybe not.
Recall my article on how a metals dealer works?
JP Morgan: Gold Could Now Face ‘Unlimited’ Demand May 13, 2010 10:12am EDT by Vincent Fernando,
JP Morgan’s John Bridges believes the latest breakout for gold was a huge positive sign for the metal.
Euro weakness fears, coupled with dollar weakness fears, could lead to an enormous amount of demand:
JP Morgan:
A German banker once told us that gold normally trades like a commodity. However, when investors lose confidence in currencies, because the pool of gold is so much smaller than the pool of currencies, demand for gold can effectively become unlimited. We believe the European version of “QE” is generating serious currency worries and led today to the breakout of the gold price above the previous intraday high at $1,226/oz.
We see this breakout as significant: The market might have welcomed the European’s latest solution to the Greek crisis with a weaker gold price. If the gold price had fallen, bears could have pointed to a “double top” in the chart, and this could have contributed to a period of weakness for the metal.
They’re recommending exposure both through gold and gold-related stocks, as insurance, since despite the fact that gold is a record price levels, they believe that it could feasibly go far higher. Guessing just how wild investors will get for an asset is still a horribly tricky game nonetheless.
More…


Jim Sinclair’s Commentary
Huge and somewhat out of people’s sight.
U.S. Posts 19th Straight Monthly Budget Deficit May 12, 2010
WASHINGTON (Reuters) – The United States posted an $82.69 billion deficit in April, nearly four times the $20.91 billion shortfall registered in April 2009 and the largest on record for that month, the Treasury Department said on Wednesday.
It was more than twice the $40-billion deficit that Wall Street economists surveyed by Reuters had forecast and was striking since April marks the filing deadline for individual income taxes that are the main source of government revenue.
Department officials said that in prior years, there was a surplus during April in 43 out of the past 56 years.
The government has now posted 19 consecutive monthly budget deficits, the longest string of shortfalls on record.
For the first seven months of fiscal 2010, which ends September 30, the cumulative budget deficit totals $799.68 billion, down slightly from $802.3 billion in the comparable period of fiscal 2009.
Outlays during April rose to $327.96 billion from $218.75 billion in March and were up from $287.11 billion in April 2009. It was a record level of outlays for an April.
More…
Stat of the Day: California now in top ten for highest government default probabilities in the world Posted by Edward Harrison on 12 May 2010 at 4:16 pm
With the liquidity crisis surrounding the rollover of Greek debt subsiding, the probability of default for that country has plummeted from nearly even odds to just over one in three.
Last Week’s Numbers: 06 May 2010

Meanwhile, other state and national governments are showing continued stress. Venezuela tops the list with a CDS spread of 1049 and a risk of default now over 50%. Argentina and Pakistan are also now ahead of Greece which is now only the 4th most likely government in the world to default.
Most recent numbers: 11 May 2010

The usual suspects are on the list including Dubai, Ukraine and Latvia. The one thing to notice is that California has now cracked the top ten with a 20% default probability. For California muni bond holders, this number bears watching.
Source: CMA Sovereign Risk Monitor
More…


Austrian Mint gold sales surge on panic buying
The Mint says it has sold more gold in the two weeks from April 26 than in the entire first quarterAuthor: Boris Groendahl (Reuters)Posted: Thursday , 13 May 2010
VIENNA (Reuters) -
The Austrian Mint, which produces the popular Philharmonic gold coin, sold more gold in the two weeks from April 26 than in the entire first quarter of the year because of soaring demand in Europe, it said on Wednesday.
The mint sold 243,500 ounces of gold in coins and bars in that period, compared to 205,000 ounces in the entire first three months of the year, marketing director Kerry Tattersall told Reuters in a phone interview.
"Demand is exclusively from Europe, we haven't had any orders from the United States and Asia in the last few weeks," Tattersall said. "That's a clear sign that there is panic buying because of concerns about Greece and the euro."
Sales of its signature Philharmonic gold coin reached 108,000 ounces in the same period, also surpassing the 89,000 ounces in the first quarter, which Tattersall said had been an average quarter that did not live up to the previous year's.
"In the last two, three weeks, it was pretty frantic again," he said. The mint has started working in three shifts again, minting coins and bars around the clock to keep pace with demand, he said.
"Currently we don't have anything in stock. We sell our entire daily production immediately," he said. (Reporting by Boris Groendahl; Editing by Amanda Cooper)
© Thomson Reuters 2010 All rights reserved


EURUSD Breaks Down, Hits 1.2572
Submitted by Tyler Durden on 05/13/2010 05:31 -0500
European Central Bank
And so the EURUSD plunges to new lows. Yesterday, we expected the euro would hit a 1.25 handle by the end of the day. Alas, we were off by 4 hours. US banks are now rumored to be joining European banks in taking on the ECB directly and shorting the living daylights out of the doomed currency expecting another several hundred billion in bank bailout funds to be added shortly. Last time we were here a week ago in the EURUSD, the Dow was crashing in the four digit range. Now, we know that the machines have decoupled from the EURUSD and EURJPY signals, as the EUR is no longer a part of any correlation trade, As such we expect the euro to hit parity at about the time the S&P hits 1,500, on yet another no volume melt up, just in time for Gold to hit a 3x multiple of the S&P. Although, that won't be today: gold is currently being pushed down the LBMA. JPMorgan can not imagine a world where gold is $1,250 or higher. Alas, we give this last ditch attempt at most 24 hours. In other news, the EURUSD has buyer support in the 1.2550 area. As for stocks: look at volume. If it abysmal as it tends to be whent he Primary Dealers, the Fed and the quant community collude to push it up double digit handles, we expect S&P 1,200 today. If volume picks up the market will tank. Guaranteed.
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