U.S. Dollar Now Ripe For Catastrophic Devaluation

 

Action Speak Louder Then Words...
PLEASE JOIN THOUSANDS OF PATRIOTIC CITIZENS FROM AROUND THE WORLD, IN SENDING BANKERS A CLEAR MESSAGE ON AUGUST 12th...
On August 12th 2010, citizens around 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...
***PLEASE forward this to family and friends.

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In The News Today

Posted: Aug 10 2010     By: Jim Sinclair      Post Edited: August 10, 2010 at 12:17 pm
Filed under: In The News

Jim Sinclair’s Commentary

Every program requires financing. QE is the means.
As the economy weakens you can anticipate programs increasing to an infinite number. To finance these programs, broken states, unemployment and entitlement, the only means is QE to infinity.

Gov’t likely to keep big mortgage market role By ALAN ZIBEL (AP) – 15 hours ago
WASHINGTON — Keeping Fannie Mae and Freddie Mac in business will cost taxpayers billions. But getting the federal government out of the mortgage business would cost home buyers dearly, in the form of higher interest rates.
The Obama administration will begin tackling this dilemma next Tuesday at a public conference on the future of the mortgage system. Fannie and Freddie lost a combined $9 billion in the April-to-June quarter and have needed more than $148 billion to stay afloat since the government rescued them nearly two years ago.
Figuring out what to do with Fannie and Freddie could take years and involves a more difficult question: How much should the government do to subsidize the housing market?
The government has helped make mortgages attractive to Americans for decades with a range of policies, from allowing homeowners to deduct mortgage interest payments to backing loans that make long-term fixed-rate mortgages widely available.
Now, Fannie and Freddie are facing scrutiny for the billions that taxpayers have covered for the bad loans made during the housing boom. And the administration and Congress are under pressure to address Fannie and Freddie’s role that contributed to the mortgage crisis after leaving that out of the broader financial regulatory overhaul.
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Jim’s Mailbox

Posted: Aug 10 2010     By: Jim Sinclair      Post Edited: August 10, 2010 at 12:12 pm
Filed under: Jim's Mailbox

Jim,
Mirror mirror on the wall…
Even the management of Berkshire Hathaway fell victim to their own warnings on derivatives, and now their flagship earnings are taking a fall!
Let this be another sign that the writing is on the wall, this is it and it is now. Winter for the US dollar has arrived and the season for gold will be scorching hot all the way to your prediction of $1650 and then onwards toward Alf and Armstrong’s numbers.
"Derivatives are financial weapons of mass destruction."
"Charlie and I are of one mind in how we feel about derivatives and the trading activities that go with them:
We view them as time bombs, both for the parties that deal in them and the economic system."
CIGA "The Gordon"

Berkshire Hathaway’s Net Earnings Fall On Derivatives Loss August 09, 2010
Despite a significant jump in second quarter operating income, Berkshire Hathaway Inc. has reported a 40% decline in net income compared with a year earlier.
Operating income climbed 73% to $3.07 billion in the second quarter that was lifted by the acquisition of Burlington Northern Santa Fe Corp., which operates one of the largest railway systems in North America.
Acquiring the railroad company in February added $603 million in second quarter net earnings. Tempering gains from that acquisition was $1.41 billion in losses on derivatives.
The company’s insurance operations reported a net underwriting gain of $462 million, up sevenfold from a year earlier. Leading that charge was Geico, the company’s direct writer of automobile insurance. Geico posted an underwriting gain of $329 million, nearly three times what it had reported for the second quarter in 2009. Premiums earned increased 4.7% in the second quarter to $3.55 billion.
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Wal-Mart prices on the rise: JP Morgan study CIGA Eric
While the talking heads discuss the threat of deflation ad nauseam, they conveniently ignore an ever increasing number of real world observations of currency induced cost push inflation.
Wal-Mart Stores Inc has raised average prices at its stores by about 6 percent in a month, according to a recent study in Virginia.
A check by J.P. Morgan Securities said average prices at the Wal-Mart Supercenter in Virginia were upped by 5.8 percent, the most significant sequential increase since it started the study in January 2009.
Source: finance.yahoo.com
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 The Story Of Currency Induced Cost Push Hyperinflation In Three Chapters

Posted: Aug 09 2010     By: Jim Sinclair      Post Edited: August 9, 2010 at 9:58 pm
Filed under: General Editorial
Dear CIGAs,
The following is the story of currency induced cost push hyperinflation, represented in three picture chapters.

 
 


More "Change You Can Believe In"...

Another Revision Of The Q2 GDP Number By JPM: Firm Now Estimates That The Real Economic Performance Was 1.3% (From 2.4%)

Another Revision Of The Q2 GDP Number By JPM: Firm Now Estimates That The Real Economic Performance Was 1.3% (From 2.4%)

NFIB Survey Indicates Small Business Capitulates: "Owners Have No Confidence That Economic Policies Will “Fix” The Economy"

"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation
 is controlled by its system of credit. Our system of credit is concentrated. The growth
of the nation, therefore, and all our activities are in the hands of a few men. We have
come to be one of the worst ruled, one of the most completely controlled and dominated
Governments in the civilized world no longer a Government by free opinion, no longer a
Government by conviction and the vote of the majority, but a Government by the opinion
and duress of a small group of dominant men."
-Woodrow Wilson, after signing the Federal Reserve into existence.