Hindenburg Omen Creator Has Exited The Market

 

Guest Post: How Hyperinflation Will Happen

15 Signs The U.S. Housing Market Is Headed For Complete And Total Collapse
CIGA Eric
Words like total collapse and dying tends to be associated with the "selling of fear". This label, in turn, can lead to instant discredit or laughable denial.
Unfortunately, the cyclical low in housing is not due for years (decades). One-dimensional thinking, such as the price of my home is no longer falling in U.S. dollars so things are getting better, only ensures that most will be caught flat-footed by the complex nature of a multidimensional world. In constant currency terms, gold, the value of home prices in America continues to slide into the minor cyclical low.
As the article suggests the signs are there, but few are ready to acknowledge it until the majority of the damage has been done. Simply follow the money, listen to the markets, and ignore the rest.
U.S. Median Home Price (MHP) to Gold:
S&P Homebuilders (HB) to Gold Ratio:
The U.S. housing market is dying. You will only hear hints of this on the mainstream news and from the politicians in Washington D.C., but as statistic after statistic continues to roll in, the reality of what is happening is becoming very difficult to deny.
Up until the end of April, the giant tax credit that the U.S. government was bribing home buyers with helped stabilize the real estate market, but now that the tax credit has expired the decline of the U.S. housing market has resumed.
Source: businessinsider.com
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In The News Today

Posted: Aug 23 2010     By: Jim Sinclair      Post Edited: August 23, 2010 at 3:37 pm
Filed under: In The News

Jim Sinclair’s Commentary
Volcker won it all and Greenspan gave it all away.
China has it now.


Jim Sinclair’s Commentary
Adam Ferguson is the author of When Money Dies, which is about hyperinflation during the Weimar Republic.
Even though the reporter excerpts to modify the significance of Currency Induced Cost Push inflation of Weimar, he fails. The comparison between Weimar and the path the West is on is undeniable. The results will be comparable.
Under that scenario both the Dow and Gold will go ballistic with gold first.

Lunch with the FT: Adam Fergusson By Jonathan Ford
Published: August 20 2010 22:30 | Last updated: August 20 2010 22:30
As befits a man who has written an acclaimed book about money and prices, Adam Fergusson starts our encounter by eyeing the menu beadily and asking who will be paying the bill. “Milton Friedman said the most efficient way of spending money is to spend your own, and the least efficient way is to spend other people’s,” he says. “If you go out to lunch and have to pay your own bill, you have what you want and can afford. If someone else is paying, you may as well have the lobster.”
As I confirm that the FT will be paying, we scan the menu but, alas, there is no lobster. I am meeting Fergusson at Belvedere, a slightly gloomy restaurant in the middle of Holland Park, close to where he lives in west London. It is a sultry day and we initially consider sitting outside on the terrace, but the closely packed tables are already filling up and it is too noisy. So we settle down, virtually the only diners in the shadowy and rather formal interior.
Fergusson, 78, a former journalist and politician, is enjoying an unexpected literary revival thanks to the republication last month of a book he wrote 35 years ago – a history of the hyperinflation in 1920s Weimar Germany. When Money Dies tells the story of Germany’s economic collapse after the first world war, which culminated in the mind-boggling inflation of late 1923 – a dreadful time when visitors to Berlin saw people starving in the streets and the number of marks to the pound was at one point equivalent to the number of yards from the earth to the sun.
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Jim Sinclair’s Commentary
This is a revealing video and article. It speaks directly to inevitable Currency Induced Cost Push Inflation that few understand.
Gold will trade at $1650 and above.

"Enron Accounting" Has Bankrupted America: U.S. Deficit Really $202 Trillion, Kotlikoff Says Posted Aug 23, 2010 07:30am EDT
by Peter Gorenstein
The Congressional Budget Office (CBO) forecasts the U.S. budget deficit will hit $1.3 trillion this year. An astronomical figure, to be sure, but that’s lower than was projected in March. It’s also less than last year’s record $1.41 trillion deficit, which was close to 10% of GDP.
And, that’s the good news.
As the deficit grows so does the national debt, which is currently more than $13.3 trillion, according to official figures.
But the situation is actually much, much worse, according to Boston University economics professor Laurence Kotlikoff.
“Forget the official debt,” he tells Aaron in this clip. The “real” deficit – including non-budgetary items like unfunded liabilities of Medicare, Medicaid, Social Security and the defense budget – is actually $202 trillion, the professor and author calculates; or 15 times the “official" numbers.
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Jim Sinclair’s Commentary
Eventually yes, but for now MOPE is directed at the weak euro states to divert this occurrence.

Hussman: Bernanke’s Quantitative Easing Is About To Trigger A Collapse In The US Dollar Joe Weisenthal | Aug. 22, 2010, 5:29 PM
In his latest weekly letter, John Hussman warns of an imminent and disorderly collapse of the US dollar, courtesy of Ben Bernanke’s move towards more quantitative easing.
The whole thing is worth reading, but here’s the key part of it:
From the standpoint of the two parity conditions, the very long-term implication of quantitative easing is a gradual devaluation of the U.S. dollar (an increase in the dollar price $/FC of foreign currency). If this increased inflation risk was reflected in interest rates (so that real interest rates were held constant), the U.S. dollar would simply move along that gradually sloped PPP line, and likewise, foreign currencies would gradually appreciate against the dollar.
However, because of economic weakness and credit strains, coupled with the demand for Treasuries by the Fed, quantitative easing instead moves U.S. interest rates in the opposite direction, falling rather than rising. From the standpoint of interest rate parity, capital market equilibrium then requires the U.S. dollar to depreciate immediately, by a sufficient amount to set up the expectation of future appreciation in order to offset the shortfall of U.S. interest rate returns.
In short, quantitative easing is likely to induce what the late MIT economist Rudiger Dornbusch described as "exchange rate overshooting" – a large and abrupt shift in the spot exchange rate that occurs in order to align long-term equilibrium in the market for goods and services with short-term equilibrium in the capital markets.
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Mainstream Media is Crushing Public Confidence

Posted: Aug 23 2010     By: Greg Hunter      Post Edited: August 23, 2010 at 10:50 am
Filed under: USAWatchdog.com
Jim Sinclair’s Commentary
Slowly the Sheeple are waking up.
MOPE is becoming less effective. This is how trends start.

Dear CIGAs,
Recently, a new Gallup poll delivered some bad news to mainstream media–only one fourth of people asked believe what it says.  The Gallup story said, “Americans continue to express near-record-low confidence in newspapers and television news – with no more than 25% of Americans saying they have a “great deal” or “quite a lot” of confidence in either.”  (Click here for the complete Gallup story.)  
This is not a recent trend according to Gallup and other polls done on this subject.  Last summer, comedian Jon Stewart of the “Daily Show” was “Most Trusted” newscaster.  I wrote about this in a piece I did last year called “The Soft Truth.”  I said, “He had almost as many votes as Charlie Gibson and Brian Williams combined.  Katie Couric, according to the Time Magazine poll, came in dead last.  Boy, if that is a not a wake-up call to mainstream media, I do not know what is. . . . Doing superficial event type news programming is something I call “The Soft Truth.”  It is more or less superficial news and is cheap, fast to produce, and you will not make enemies. The news in mainstream media has mostly become just the stuff between the commercials. Then, there is what I call “The Hard Truth.” This story is not cheap, it ties up the company lawyers and management and, if done right, you will piss some people off.  And even if there are cutbacks because of advertising shortfalls, you can still ask hard questions.”  (Click here for the complete soft truth story for September of 09.) 
Do you see any reporters even asking any hard questions these days?  I guess I should be happy the mainstream media is in the tank because Internet sites like this one and many others are gaining popularity for exposing “The Hard Truth.”  I am also not exactly sure why the mainstream media acts this way.    
Maybe the press, as a whole, is just not brave enough to put out the real story.  Some journalists are doing good reporting, but often their stories are downplayed or are accused of spreading unfounded doom and gloom for telling the truth.   Maybe corporate America, which owns most of the mainstream media, is subtly distorting the news to make things look better than they really are.   The mainstream media completely missed the financial meltdown of 2008 and covered it like some unforeseen event.  There were plenty of signs we were headed for trouble, and no one wanted to report on them except a few people.  Here is what I said on CNN in March 2008.




Now, we are headed for trouble again and, yet, the mainstream media is engaged in this idiotic debate on whether or not there is going to be another plunge in the economy.  Nearly all the signs are pointing down, and difficult questions are arising about the solvency of America.  Recently, Laurence Kotlikoff, an economics professor at Boston University, cited an IMF report and said the U.S. is “Bankrupt.”  Why is this not news and at least worthy of as much equal time as the pin-headed Jet Blue flight attendant that slid down an escape hatch at JFK airport?  Please tell me why the USA being “bankrupt” isn’t of profound importance to every single American?  Every week, the mainstream media makes my point by pushing worthless cheap content.  It budgets for superficial stories (The Soft Truth) and ignores the really important stuff (The Hard Truth) that might call for some tough questions and ruffled feathers.
I worked for ABC and CNN for 9 years as an investigative reporter.  I didn’t get a story on the air without approval from the company lawyers and management.   The networks and cable are doing a lot less of that kind of work these days because they don’t want to spend the money.  Mainstream media is putting its resources on superficial stories instead of covering news that really affects your life.   So, when I hear polls that say people do not trust the mainstream media, I am not surprised.
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Japan Times article: Consequences of U.S. debt.


NY Times Business Day: In Striking Shift, Small Investors Flee Stock Market


Gloomy US Industrial Data Rattles World Markets