Warning Signs of Full Spectrum Collapse are Everywhere


G20 to Talk about Averting Armageddon - Again- CNBC


Interview: Jim Rogers on Currencies and Inflation


Buffett Expects "Terrible Problem" for Muni Debt- Bloomberg


Gold Sales to Europe Jump on Greek Debt Crisis, Perth Mint Says


S. Africa's Krugerrand Output Jumps to 25-Yr High- Bloomberg


A Big Red Flag


Down, Not Out (The Mogambo Guru)


Central Bank Can't Keep the Kiwi Dollar Down- Bloomberg


Federal Debt Hits Record $13 Trillion- Washington Times


This article is written to distract you...Keep your eye on Greece and don't pay any attention to what is happening in your own back yard...33 U.S. States are BANKRUPT, but they don't want you to know, that they are about to explode...
Greece to Sell State Assets to Pay Down Deficit- NY Times



The Difference This Time The Hedgies And Dirty Tricksters Return Posted: Jun 03 2010 By: Jim Sinclair Post Edited: June 3, 2010 at 6:18 pm
Filed under: General Editorial
Dear Jim,
Gold traded inversely to the dollar last week (directionally, but not tick for tick). Now the weak euro is a drag on the gold price.
Why are we now seeing this type of behavior and when can we expect gold to resume its appreciation?
Thanks, CIGA Brian S.

Dear Brian,
Your question reflects, I am sure, what people are worrying about.
The cold hard fact is that the hedgies, driven by momentum algorithms, have reduced their position, continue to sell or have gone short gold. This week the hedgies made a pass at gold shares, from major to junior, increasing or re-establishing their short position.
The community still follows those that call tops. So far each top call has failed to do anything but take people out of their position.
There are three factors to think about right now:
The euro is seeking it lows again from which intervention has come, and from which intervention must continue to come right here and now.
The cash price of gold, which had fallen away from the delivery month future, is now moving back. This indicates the physical market is firming.
The Libor rate continues to rise which indicates that the euro zone rescue package has no shock and awe in it at all.
The hedgies, the new masters of the universe, feel certain that they can run any market, anywhere at any time. That assumption could come to a screeching halt now because a crisis anywhere is a crisis everywhere.
The hedgies are running the gold price based on algorithms and the community is having conniptions based on seasonality.
Gold will trade at $1650 and better. These reactions are normal to markets and we have seen them together a thousand times or more.
Your degree of concern is unfounded. The risk in this trade is to the hedgies, not to us.
The expectation of a sell off going into June is challenged by the fact that a crisis anywhere in a global market economy is a now crisis everywhere. This concept is backed by the firming cash physical to cash contract price of gold and the action of Libor. Let’s not forget four failed interventions now in the euro and the absolute necessity that right now, this minute, the euro intervention must occur again.
I do not believe those that understand gold’s insurance character should try to trade every wiggle in price. Please review my recent communication to you the day this started:
Return Of The Hedgies And Dirty Tricksters
Dear Comrades In Golden Arms,
The hedgies and dirty tricksters are back.
Frustration goes both ways. The price of gold has been a disappointment to the gold bears. The action in the HUI (AMEX Gold Bug Index) has posed a threat to the short on gold share hedgies and dirty tricksters.
This morning’s pop up on the euro was accepted by this mangy group as the forth entry of emergency money into the currency market in the form of intervention. That message was taken by this group as confirmation to hold the euro at $1.2150 Gold’s failure to hold the highs of this morning has been taken by the discouraged gold and gold share shorts as courage to try one more time.
Discouragement goes both ways. The gold share longs have felt it for a long time. The gold share shorts cannot be too happy either.
So in rolled the short of gold, gold share hedgies and dirty tricksters to re-establish closed short positions and add to old ones.
This time it will be different.
Different because the short of gold and gold share hedgies are fighting key dates of the long term cycle now.
Different because MOPE (Management of Perspective Economics) is not having the desired effect on business activity.
Different because every weak member of the euro will be lambasted by the rating agencies, the IMF and the CDS tool.
Different because California, larger than any of the weak euro members, is heading for bankruptcy.
Different because the US dollar claims strength by basking in the euro problems, not because it has fundamental value for price.
The wind is not at the back of the short of gold, gold shares hedgies and dirty tricksters. $1650 is certainly coming. About that there is no question in my mind. More so, the short of gold shares and dirty tricksters no longer live in the dark, but are rather public figures to management and major shareholders of their respective issues they have offended for the past few years.
Their jitney (trans-border false flag brokers) partners do not hide their identity.
There is a balance in all things and retribution will be dealt out by us, not them.
Respectfully, Jim



In The News Today Posted: Jun 03 2010 By: Jim Sinclair Post Edited: June 3, 2010 at 6:29 pm
Filed under: In The News
Jim Sinclair’s Commentary
CIGA Green Hornet says this should speed things along.
Congress pulls back state aid package, leaving a $2-billion hole in California budget House Democrats kill a $24-billion fund to help cash-strapped states cover costs. States are lobbying hard to have it restored, warning of further devastating cuts to healthcare and social services. By Richard Simon and Evan Halper, Los Angeles Times June 3, 2010
With the federal deficit a growing political liability, lawmakers in Congress are backing off plans to send more aid to financially strapped states, putting in jeopardy billions of dollars that California and others were counting on to balance their budgets.
The potential loss of funds is a significant setback for Gov. Arnold Schwarzenegger and state lawmakers, who may not see nearly $2 billion in federal assistance that they intended to use to help bring California out of the red.
The money was to be California’s share of $24 billion in proposed assistance, mostly to cover healthcare spending, spread among all states. Budget experts say that is enough to wipe out about one-fourth of the combined state budget shortfalls.
In California and elsewhere, officials thought the funds were a sure thing. The money was one of the few elements of Schwarzenegger’s budget plan on which there was bipartisan agreement. But House Democratic leaders last week stripped the money out of legislation amid election-season jitters.
"This is a serious problem," said Jean Ross, executive director of the California Budget Project, a Sacramento-based nonprofit. "The fear of deficits seems to be overtaking Washington. They are not realizing the bigger threat is the economy could slide back into recession as a result of state and local budget cuts."
More…


Will happen here soon...
Greek Unions in 24-Hr Strike against Austerity- Bloomberg



Iran said to be selling euros to buy dollars and goldSubmitted by cpowell on Wed, 2010-06-02 12:59. Section: Daily Dispatches
By Michael Wei and Simon RabinovitchReutersWednesday, June 2, 2010
http://www.reuters.com/article/idUSLDE65111120100602?type=marketsNews
The Iranian central bank has announced that it will sell 45 billion euros from its foreign exchange reserves to buy dollars and gold, China's official Xinhua news agency reported on Wednesday, citing unspecified Iranian media reports.


Is Europe heading for a meltdown? Mervyn King, the Bank of England Governor, summed it up best: "Dealing with a banking crisis was difficult enough," he said the other week, "but at least there were public-sector balance sheets on to which the problems could be moved. Once you move into sovereign debt, there is no answer; there's no backstop."


Roubini: World at Risk of Double Dip Recession for Years. (A hat tip to Brett G. for the link). Brett's comment on article: "Wouldn’t that be called a Depression'?"


Gold Rises to Two-Week High on Demand for Alternative to Euro


General Strike Looms as Spain's Credit Rating Falls


Greece Urged to Give Up Euro


Most Over-Valued Region in San Francisco Gets Taste of Commercial Real Estate Bust