Gerald Celente: We Won't Recover


Forget a Recession, The Empire is Crumbling

Posted by: Phoenix Capital Research

Post date: 09/23/2010 - 12:50

Let’s be honest. Forget recessions, forget even Depressions, the US is an empire in decline. You can literally see it crumbling right in front of you. Just start looking at how people live, eat, and act on a day to day basis. Look at how our Government runs itself, how it manages our affairs, how it spends our tax Dollars. Look at how our justice system works, who it protects and who it punishes. It’s all out there, right in the open for you to see. You don’t need an expert degree or some kind of advanced education. It’s OBVIOUS to anyone who bothers looking around. The fact we don’t admit it doesn’t mean it’s not tr

Guest Post: Stealth Monetization in the U.S.A.

Insofar as money is concerned, governments and central banks should be kept as far away from one another as a pedophile from Dakota Fanning. If ever the twain should meet, very bad things would happen. However, now, in the good ol’ U.S. of A., monetization is taking place—and it is happening right before our eyes, even though no one is realizing it. This monetization is invisible to sophisticated analyses, but obvious to anyone looking at the situation. It's what I call stealth monetization. —Gonzalo Lira.

   

Take It From Someone Who Called the Housing Crash (and its victims) in 2005, We Are About Midway Through the Downturn, If That Far

• Reggie Middleton
  
  
  
  
  Post date: 09/23/2010 - 13:09
  For anybody that values results over brand names, the housing market has a much rougher road ahead than many presume and banks are literally the walking dead! Having accurately called the fall of the WaMu, Countrywide, Bear Stearns, MBIA, Ambac, Lehman, residential and commercial real estate I am confident that the list of big name failures WILL EXPAND! Every single variable that can be plugged into a housing value equation is explicitly negative, save the manipulated mortgage interest rates (meaning another bubble to burst).

Marc Faber: The two investments every American should own
"You would be out of your mind... to even consider expanding in the US.."

Some Painful Truthiness From Paul Volcker

 

QE2 in Round Trillions


US Government 'hiding true amount of debt'


Fed hints it could buy more bonds


UK: Middle Class Families Could Face "Lie Detector" Tests Over Taxes

 

Guest Post: White House: Recovery to take years

 

Much money wants to buy dips in metals, Turk tells King World News

 

Are Corporate Insiders Ditching Their Firms for Precious Metals?

By: Dr. Jeffrey Lewis - 23 September, 2010 Corporate insiders are flocking out of their own companies, selling $290 in stock for every $1 they buy in S&P 500 firms. With outflows of more than $439 million dollars in equities by corporate insiders and inflows in the billions flowing into precious metals ETFs and securities, would it not be safe to assume that the same insiders dumping their shares are on the buying end of the metals spectrum? Full Story

 

Jim Sinclair’s Commentary
Contrary to general financial TV news and breaking news alert statements from Treasury, the Western World financiers do not have China shaking in any boot.

Wen Rebuffs U.S. Over Yuan Dispute
(RTTNews) – Chinese Premier Wen Jiabao on Wednesday said there is no basis for a rapid appreciation of the yuan (renminbi), rebuffing calls from U.S. officials to let the currency move more freely.
"There is no basis for a drastic appreciation of the renminbi," Wen was quoted as saying in a speech to the U.S.-China Business Committee in New York. He said a 20-40% rise in the yuan, as demanded by U.S. lawmakers, would render numerous export-reliant Chinese companies insolvent.
Wen, who is due to meet U.S. President Barack Obama on Thursday at the U.N. Summit, said the yuan’s valuation is an economic issue and should not be politicized, adding that a rapid rise in the currency will not solve the trade imbalance between the U.S. and China.
Unlike other major currencies, China does not allow its yuan to trade freely according to market demand. Instead, Chinese policymakers set a central parity rate – an official reference for daily trading – every morning and allows the currency to fluctuate upto 0.5% from that level.
Critics of China’s exchange rate policy say the artificially weak yuan unfairly gives an edge to the country’s exporters, while disadvantaging exporters elsewhere by rendering them uncompetitive.
More…



Jim Sinclair’s Commentary
According the Lao Tzu and the art of war, when condemning the enemy send a conciliatory message to help take the edge off it. In India the theory is presented as "If you cannot oblige, speak obligingly."
As published, it is titled "When yes means no."

China seeks to play down differences with US By FOSTER KLUG
Associated Press Writer
(AP:NEW YORK) Chinese Premier Wen Jiabao expressed optimism Wednesday that the United States and China would resolve major trade frictions, even as he rejected U.S. claims that Beijing’s currency policies cost American jobs.
Despite sometimes tough words, Wen used much of a speech on the sidelines of a United Nations global summit to try to ease U.S. anger against China ahead of a Thursday meeting with President Barack Obama.
Relations between the powers have suffered recently, but Wen sought to play down economic, military and diplomatic tensions. The United States and China, Wen told business leaders gathered at the Waldorf-Astoria hotel, are "not rivals in competition but partners in cooperation."
Wen, however, pushed back against U.S. claims that Beijing’s tightly regulated, undervalued currency _ the yuan _ gives China’s exporters an artificial advantage over U.S. manufacturers. Ahead of U.S. congressional elections in November and at a time of high American unemployment, China’s economic and trade policies are a major friction in ties with Washington.
Wen warned that China’s currency must not be turned into a political issue between the countries. He saw no link between the yuan’s value and China’s trade advantage over the United States. The politically sensitive U.S. trade deficit with China jumped to $26.2 billion in June, the largest one-month gap since October 2008.
More…



Jim Sinclair’s Commentary
There is no more serious dilemma in the world than China’s ability to shut down high tech by cornering the market and production of strategic materials and metals, yet the West simply paddles on with no plan whatsoever. In this case the only meaningful alternative is Tanzania, a country where China is extremely active.
I wrote a book in 1983 titled The Strategic Metals War. it was spot on then and is spot on now.

China Blocks Export of Crucial Minerals to Japan as Dispute Escalates By KEITH BRADSHER
Published: September 22, 2010
HONG KONG — Sharply raising the stakes in a dispute over Japan’s detention of a Chinese fishing trawler captain, the Chinese government has blocked exports to Japan of a crucial category of minerals used in products like hybrid cars, wind turbines and guided missiles.
Chinese customs officials are halting shipments to Japan of so-called rare earth elements, preventing them from being loading aboard ships at Chinese ports, industry officials said on Thursday.
On Tuesday, Prime Minister Wen Jiabao personally called for Japan’s release of the captain, who was detained after his vessel collided with two Japanese coast guard vessels about 40 minutes apart as he tried to fish in waters controlled by Japan but long claimed by China. Mr. Wen threatened unspecified further actions if Japan did not comply.
A Chinese Commerce Ministry spokesman declined on Thursday morning to discuss the country’s trade policy on rare earths, saying only that Mr. Wen’s comments remained the Chinese government’s position. News agencies later reported that Chen Rongkai, another ministry spokesman, had denied that any embargo had been imposed.
Any publication of government regulations or other official pronouncements barring exports would allow Japan to file an immediate complaint with the World Trade Organization, alleging a violation of free trade rules. But an administrative halt to exports, by preventing the loading of rare earths on ships bound for Japan, is much harder to challenge at the W.T.O.
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Jim’s Mailbox

Posted: Sep 23 2010     By: Jim Sinclair      Post Edited: September 23, 2010 at 1:24 pm
Filed under: Jim's Mailbox
Jim,
Taibbi has done another great piece.
CIGA Ursel

BP’s Shock Waves
How the oil giant’s catastrophic spill in the Gulf could trigger another financial meltdown By  Matt Taibbi
Sep 16, 2010 11:30 AM EDT
It was sickening enough when British oil giant BP set new standards for corporate scumbaggery in the Deepwater Horizon oil spill, turning the Gulf of Mexico into its own personal toilet and imperiling entire species of wildlife in an attempt to save a few nickels. But with the Gulf geyser finally capped, there’s still a way for BP to cause an even more unthinkable disaster: an AIG-style, derivative-fueled financial shitstorm. If the company decides to declare bankruptcy — a very real possibility with these bastards — it could trigger chaos in our casino system of finance, underscoring the insane levels of leverage and systemic risk we have left in place, even after the global economic crash of 2008.
The first serious whiff of trouble came on June 15th, when Barack Obama manned up and went on national TV to tell the nation that he wasn’t going to let BP worm its way out of this one. "We will make BP pay for the damage their company has caused," he declared, vowing to push BP to set aside $20 billion to clean up its mess and compensate victims.
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Jim,
Resistance is broken. Next level of attention is 1390 – 1400.
Kind regards,
CIGA Stefaan



Dear Eric,
There is a greater why to this than the obvious.
The resignations are hitting hard and fast. the head of the FDIC has had some hard words for the administration.
What is the real cause of this phenomena? Could it be statistical?
Regards,
Jim

The Exodus Continues CIGA Eric
The metaphor of rats jumping from a shinking ship comes to mind. This clears the way for the new New Deal II.

Financial bailout chief announces resignation
Herb Allison, the head of the government’s $700 billion financial bailout program, announced on Wednesday that he would resign.
Allison said in a letter to his colleagues in the Treasury Department’s Office of Financial Stability that they had accomplished a great deal.
Lawrence Summers to leave economic council, return to Harvard
President Obama’s top economic adviser, Lawrence H. Summers, will step down as director of the National Economic Council after the November elections and return to a teaching post at Harvard University, the White House announced Tuesday.
The departure of Summers, 55, will complete the turnover of three of Obama’s four top economic advisers as the administration struggles with the political fallout of a stubbornly weak economy.
More…



Dear Jim,
Hope you are enjoying Tanzania. Please see the enclosed note below. Deutsche Bank is bullish on gold, citing the usual catalysts and fundamentally driven bullishness.
Congratulations on your calls which are right on as always.
Monty
Click image to enlarge in PDF format