Deflation Delusion Continues as Economies Trend Towards High Inflation



Policy Options Dwindle as Economic Fears Grow



Joel Skousen: Inflation: What it Takes to Get There



Investors Head for Bunkers, Driving Up 'Shelter Shares'. Here is key quote: "If it's the end of the world, what do you buy? Canned foods, guns and the generators," said Keith Springer, president of Capital Financial Advisory Services. "There are a huge number of people who feel this is the end of the world."

Australia And The Current Account Deficit

Posted: Aug 30 2010     By: Jim Sinclair      Post Edited: August 30, 2010 at 1:34 pm
Filed under: General Editorial

Dear CIGAs,
What Martin Armstrong offers you for free is amazing.
Knowledge of world economies is key to understanding your own economy and currency in this mirror image Forex market.
Click images to enlarge Martin Armstrong’s latest in PDF format


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In The News Today

Posted: Aug 30 2010     By: Jim Sinclair      Post Edited: August 30, 2010 at 1:28 pm
Filed under: In The News

Jim Sinclair’s Commentary
The following is a rumor and must be read as such.
Stratfor is usually a good source.
What gets my attention is speculation on fear of the death penalty for owning US government bonds. That has to tell you something.

China: Rumors of the Central Bank Chief’s Defection August 30, 2010 | 1406 GMT
Rumors have circulated in China that People’s Bank of China (PBC) Gov. Zhou Xiaochuan may have left the country. The rumors appear to have started following reports on Aug. 28 which cited Ming Pao, a Hong Kong-based news agency, saying that because of an approximately $430 billion loss on U.S. Treasury bonds, the Chinese government may punish some individuals within the PBC, including Zhou. Although Ming Pao on Aug. 30 published a report on its website indicating that the prior report was fabricated by a mainland news site that had attributed the false information to Ming Pao, rumors of Zhou’s defection have spread around China intensively, and Zhou’s name has been blocked from Internet search engines in China.
STRATFOR has received no confirmation of the rumor, and reports by state-run Chinese media appeared to send strong indications that Zhou is in no trouble at the moment. However, the release of this rumor and its dispersion throughout the public is significant, particularly as the Communist Party of China (CPC) is preparing for a leadership transition in 2012.
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Jim’s Mailbox

Posted: Aug 30 2010     By: Jim Sinclair      Post Edited: August 30, 2010 at 4:34 pm
Filed under: Jim's Mailbox
Eric,
In the early 1980s I wrote a book on the strategic metals and materials war. I owned a minor metals trading business in London at 116 Borough High Street.
I know this market better than most. This is HUGE. It can shut down the Western World high tech industry.
Jim
Backlash over China curb on metal exports CIGA Eric
Draconian describes one perspective. Strategic position or reposition describes another. It’s difficult to establish leverage in trade negotiations when huge structural deficits places hat during the Treasury auctions to the same nations setting the ‘unfavorable’ rules.
China’s draconian export curbs on rare earth minerals needed by the rest of the world for frontier technologies is escalating into a serious diplomatic and trade clash with the United States and other leading powers.
Source: telegraph.co.uk
Thanks Bob
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Americans spend a bit more as economy limps along CIGA Eric
As I suggested in my commentary, If you don’t like the message conveyed by economic time series, revise it! , personal spending and consumption data, as well as many more economic series, are hardly worthy following due to constant revision and massaging techniques. Capital flows could care less about utopia theories based on biased and historically uncomparable economic times series.
Americans are spending a little more this summer, but hardly enough to rejuvenate the weakening economy.
What is needed is a bigger boost in salaries and more jobs. Economists don’t see either coming this year, which is why the economy is likely to limp along.
Source: news.yahoo.com
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September Song 



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