Clear And Present Currency Induced Cost Push Inflation

Posted: Nov 11 2010     By: Jim Sinclair      Post Edited: November 11, 2010 at 12:08 pm
Filed under: General Editorial

Dear CIGAs,
Here is a clear and present example of currency induced cost push inflation.
How in the world can people not understand what is here and what is going to expand possibly to critical mass?
This is so basic to our mindset that I felt I had to publish it. Our businessman in the trenches reports the following.

Jim,
New updates received from SUPPLIERS today – I am not aware of the specific products affected yet or the average percentage of increase but this gives us the categories.

Commodity Price Changes
We will be updating the pricing on items in the copper wire and breakers and panel categories based on the fluctuating commodity market. There will be 200 changes to copper wire and 140 changes to breakers and panels products. We will continue to monitor this fast paced commodity to make sure we are current with our pricing strategies. The price changes will be effective on 11.12.10.

Bank of America Short Interest Plunges By 35% In October

 

Jim Sinclair’s Commentary
Regardless of the rhetoric that will be published at the close of the G20 session, it is totally FUBAR.
It is every country for themselves as a result of the monetary sins and the quarterly attack of the international investment firms using OTC derivative credit default swaps.
The Irish said they had no idea why their bond market was under such pressure. It is called an attack.

Pessimism pervades as G20 leaders show sharp split
SEOUL, South Korea — A strong sense of pessimism shrouded the start of an economic summit of rich and emerging economies Thursday, with President Barack Obama and fellow world leaders arriving in Seoul sharply divided over currency and trade policies.
The Group of 20 summit, held for the first time in Asia, has become the centerpiece of international efforts to revive the global economy and prevent future financial meltdowns.
Failure in Seoul could have severe consequences. The risk is that countries would try to keep their currencies artificially low to give their exporters a competitive edge in global markets. That could lead to a destructive trade war. Countries might throw up barriers to imports – a repeat of policies that worsened the Great Depression.
Hopes had been high that the Group of 20 – encompassing rich nations such as Germany and the U.S. as well as growing giants such as China and Brazil – could be the world forum for hashing out an economic way forward from financial crisis.
But agreement appeared elusive as the summit began, divided between those such as United States that want to get China to allow its currency rise and those irate over U.S. Federal Reserve plans to pump $600 billion of new money into the sluggish American economy, effectively devaluing the dollar.
More…




Jim Sinclair’s Commentary
I am surprised. MOPE would usually run the headline that prices of homes are steady in 50% of the country.

Home Prices Fall in Half of U.S. Cities, Realtors Say By Kathleen M. Howley – Nov 11, 2010 7:51 AM PT
Home prices fell in half of U.S. cities in the third quarter as banks stepped up repossessions of properties in default.
The median price of a single-family home dropped in 76 of 155 metropolitan areas measured, the National Association of Realtors said in a report today. Prices in Ocala, Florida, slumped 20 percent for the biggest decline. Palm Bay, Florida, and Tucson, Arizona, followed with a 15 percent slide. The median U.S. price fell 0.2 percent to $177,900.
The U.S. housing market is struggling as lenders seize a record number of properties and unemployment hovers near a 26- year high. Banks took over 288,345 homes in period covered by the Realtors report, up 22 percent from a year earlier, according to RealtyTrac Inc., a data firm in Irvine, California. Foreclosures boost the supply of available homes and reduce prices because they sell at a discount.
“The bottom has proven to be quite elusive,” said Stan Humphries, chief economist of data firm Zillow.com in Seattle. “There could be another 5 percent coming off the national market” as prices decline further, he said.
The median price of a single-family home in the New York metropolitan area climbed 2.8 percent in the third quarter. The Edison, New Jersey, region had a 3.5 percent gain and prices in the Boston metropolitan area rose 5.3 percent, the report said.
More…




Jim Sinclair’s Commentary
No more speculation of whether QE will occur. The real number the Fed gave was $900 billion.

Fed to buy $105B worth of government bonds in first phase of economic aid program Jeannine Aversa, AP Economics Writer, On Wednesday November 10, 2010, 4:27 pm EST
WASHINGTON (AP) — The Federal Reserve will buy a total of $105 billion worth of government bonds starting later this week as it launches a new program to invigorate the economy.
The bonds will be purchased through a series of 18 operations that start on Friday and end on Dec. 9, the Federal Reserve Bank of New York said Wednesday. The purchases are the first since the Fed announced last week that it will buy a total of $600 billion worth of Treasury bonds over the next eight months.
The Fed will buy $75 billion of government debt as part of the new program. And, it will buy another $30 billion, using the proceeds from its vast mortgage portfolio.
That totals $105 billion for the first phase of the Fed’s government bond buying. The Fed last week said it anticipates buying on average $110 billion a month.
The Fed’s announcement on Wednesday helped boost stocks and bond prices.
More…

Hourly Action In Gold From Trader Dan

Posted: Nov 11 2010     By: Dan Norcini      Post Edited: November 11, 2010 at 1:58 pm
Filed under: Trader Dan Norcini
Dear CIGAs,
Click chart to enlarge today’s hourly action in Gold in PDF format with commentary from Trader Dan Norcini



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Money, Mud & Hyperinflation

 

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