Goldman Capitulates: Lowers GDP Forecast, Increases Unemployment And Inflation Outlook, Sees Imminent QE 

Bernanke's Mentor Diamond Rejected By Senate For Fed Board After Shelby Alleges Lack Of Inkjet Cartridge Qualifications

 

PLEASE JOIN THOUSANDS OF PATRIOTIC CITIZENS FROM ACROSS THE WORLD, IN SENDING BANKERS A CLEAR MESSAGE ON AUGUST 12th...
On August 12th 2010, citizens across the world will be withdrawing $ 500.00 each from their local ATM's...
This action will cause no problems with the financial institutions, but will send a clear message to the Banks...
PLEASE HELP, This is one simple way to have your voice heard, where it will do the most good...


Buy gold, silver, and tiny bottles of scotch
ShadowStats' John Williams on how to survive the coming hyperinflation... 


Marc Faber: Dow could fall to 1,000
"When manias come to an end, prices tend to retreat to where the mania started..." 

Agflation fears grow as Russia halts grain exports

 Central bank gold sales minimal as IMF sales continue

 Guest Post: Who's Scoffing Now

Real U-3 Unemployment Rate When Adjusted For Labor Force Participation: Around 14%

Guest Post: Put Your Helmet On, It's On

 

Jim Sinclair’s Commentary
There is no question it is coming. It will be done as I have outlined with a SDR gold ratio tied to a major indicator of world liquidity, and AFTER currency induced cost push inflation, it will work.
Historically, currency induced cost push inflation results after the crisis. A commodity related currency has been the solution for a fix of sovereign paper.
Replacing your defrocked currency with another country’s currency is no fix for your currency.

IMF blueprint for a global currency – yes really Posted by Izabella Kaminska on Aug 04 16:09.
FT Alphaville missed this IMF paper when it first came out in April, 2010.
Authored by Reza Moghadam, director of the IMF’s strategy, policy and review department, it discusses how the IMF sees the International Monetary System evolving after the financial crisis.
We’ll cut to the chase and draw readers’ attention to the final bubble in the following chart, found on page 4:
Which means, in the eyes of the IMF at least, the best way to ensure the stability of the international monetary system (post crisis) is actually by launching a global currency.
And that, the IMF says, is largely because sovereigns — as they stand — cannot be trusted to redistribute surplus reserves, or battle their deficits, themselves.
The ongoing buildup of such imbalances, meanwhile, only makes the system increasingly vulnerable to shocks. It’s also a process that’s ultimately unsustainable for all, says the IMF.
More…



Jim Sinclair’s Commentary
The recovery is the shape of a "Ski Jump," not a V, not a W and definitely not a U.
Gold will trade at $1650 and better. The dollar’s problems swamp Europe’s problems. There is no default for a sovereign bond – it is simply a restructure of debt. Tell that to a debt holder and he/she will go wild, but it is that way.
MOPE will continue to work on the Sheeple and therefore Spain’s upcoming restructuring will be heralded as problem over.
U.S. Shed 131,000 Jobs in July, but Private Payrolls Grew; Jobless Rate Steady at 9.5% By Alan Rappeport in New York
Published: August 6 2010 14:05 | Last updated: August 6 2010 14:36
The US shed 131,000 workers in July, as weaker-than-expected private sector hiring cast doubt over the economy’s ability to create jobs as it expands.
Official figures showed job losses mounting for the second month running, following five consecutive months of gains from the start of the year. Wall Street analysts had predicted that payrolls would fall by 65,000 in July, leaving the month’s losses twice as severe as feared, and June’s decline was revised to show a far steeper decline.
Meanwhile, a separate survey showed that the unemployment rate held steady at 9.5 per cent, as discouraged workers who gave up on their job searches left the labour force smaller.
The jobless rate remains the most closely watched measure of the economy’s health and the biggest political liability for Barack Obama, president. With pressure mounting ahead of midterm elections, the Obama administration has argued that without its policies, job losses would have been more severe.
More…



Jim Sinclair’s Commentary
No bees, no bats, and no affordable food for Main Street. Phenomenal rise in food costs.
Add that to a major pending hot/dry cycle, and eatables have only one way to go, up.
However, food and energy does not count in the standard inflationary figures because you and I do not use them.
America’s Most Common Bat Headed for Eastern Extinction By Brandon Keim
August 5, 2010
By the time today’s toddlers graduate from high school, the most common bat in North America may have vanished altogether from the eastern United States.
Researchers combined historical population trends with mortality counts in Myotis lucifugus colonies struck by White-Nose Syndrome, an extraordinarily virulent bat disease first identified in 2006. According to their models, M. lucifugus, better known as the little brown bat, has a 99 percent chance of vanishing from the east, soon.
“If mortality and spread continue the way it has in the past four years, that’s where we get the very distressing prediction of a high chance of regional extinction in 16 to 20 years,” said Winifred Frick, a Boston University bat researcher.
White-Nose Syndrome — shortened to WNS, and named after a fungus that grows on infected bats, which become weakened and die after waking too soon from hibernation — was first found in upstate New York. Since then it’s spread through caves as far south as Tennessee, and west as far as Oklahoma. In some caves, mortality is almost total. Caves where bats lived since the last Ice Age now stand silent.
More…


"Millerized" sent this: Russia to halt wheat export. And reader L.L. sent this: Why Russia's Heatwave Means Higher U.S. Food Prices. I predict this will start a chain reaction, around the globe. Other nations are sure to follow suit with export restrictions, and futures prices will soar. We can expect food riots in the future. There is also some likely inflation in other grain prices, as cattle feed is shifted slightly, to compensate. Get your wheat orders in with a trustworthy vendor pronto, before the inevitable prices increases hit the retail level! Wheat prices could double again, before December.


astounding news story: U.S. To Train 3,000 Offshore IT Workers. Jim D's comment: "We borrow money from the Chinese to train Sri Lankan citizens to take our jobs. We're such idiots.


Charles Hugh Smith spells it out: Why Japan Is Doomed (and the U.S. and E.U., too): Demographics, Low Savings, Ballooning Debt.


Japan's Cheap Debt Could Cost the World Dearly.


Total Investor: Rising pork bellies prices hit all-time high.


This comes as no surprise: City [of Chicago] bond rating downgraded.