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So You Thought Stocks Only Go Up In Boom Times?

Posted: Nov 05 2010     By: Jim Sinclair      Post Edited: November 5, 2010 at 6:21 pm
Filed under: General Editorial

Dear CIGAs,
I agree with Armstrong and our own Eric on the primary direction of equities for no good fundamental reason whatsoever.
It is endemic to currency induced cost push inflation even if Armstrong sees different reasons.
I am a buyer of calls on equities, near the money, 90 days out at least, on downdrafts. I am a buyer of puts on the long 30 year bonds on 2 point jumps. I will cover the long bond puts on the fall, and reinstate on the rise. I will do the opposite on the equity calls.
QE will deliver both. Since QE is not being used on 30 year bonds it will offer the rises for buying puts, and pay off on the falls, chopping sideways to lower with only the short end holding them from a wide open break.
Click image to open Armstrong’s latest in PDF format

In The News Today

Posted: Nov 05 2010     By: Jim Sinclair      Post Edited: November 5, 2010 at 6:02 pm
Filed under: In The News
Jim Sinclair’s Commentary
Against all odds, what we have told you here about gold has come to fruition.
Against all odds and the screams of many in the community and all that are not, what I feel about the future of the gold price will come to fruition. Gold will go to $1650 and beyond.
There is still a set of circumstances that have the power to make $1650 a reality before January 14th, 2011. Regardless, gold is going to and above $1650 very soon.
Scroll down to see our four legged pal for the day that is truly "GOLDEN."




Jim Sinclair’s Commentary
Here is the truth. John not only defines reality, but if and when a true change takes place you will see it on his site first. Isn’t that enough reason to pay John his small fee?
Where is the beef? His long report is the location of the beef.

- Baloney Payroll-Employment Data: Seasonal Adjustments Become Primary Driver of Jobs Creation? 
- October Household-Survey Employment Fell 330,000 
- October Unemployment Rates: 9.6% (U.3), 17.0% (U.6), 22.5% (SGS) 
- Fed Move to Debase U.S. Dollar Will Generate Higher Inflation But No Recovery 
- Election Results Do Not Alter Basic Economic or Inflation Outlooks
http://www.shadowstats.com/



Jim Sinclair’s Commentary
If you do the crime, you do not do the time, you simply pay. If you pay less than all of what you made that is a good business practice today.
A kid in the ghetto boosts a car and goes to Attica State Penitentiary for 8 years. Where is the equal application of the law? It simply isn’t in this time period, the darkest period of finance in human history.

Berger Group Charged With Fraud in Iraq, Afghanistan By David Voreacos – Nov 5, 2010 8:49 AM MT
Louis Berger Group Inc., a New Jersey-based engineering consulting firm, was charged with fraudulently overbilling the U.S. by more than $10 million on reconstruction contracts in Iraq and Afghanistan.
U.S. prosecutors agreed to defer prosecution of the case, and the company will pay an $18.7 million criminal penalty and reform its practices under a monitor, according to documents filed today in federal court in Newark, New Jersey. Prosecutors will dismiss the case in two years so long as the company fulfills a series of promises.
The closely held company, based in Morristown, New Jersey, had revenue of $694 million last year and has 5,000 employees in 60 countries, according to its website. As part of its settlement, the company admitted that it submitted inflated overhead rates to the U.S. Agency International Development.
Louis Berger International, a unit of Louis Berger Group, got about $736 million to modernize a power system and rehabilitate the Kajakai Dam in Afghanistan. The company won the second-most contracts for reconstruction work in Afghanistan over a three-year period ended in 2009, according to an Oct. 27 report by the Special Inspector General for Afghanistan Reconstruction.
From 1999 to 2007, former executives submitted “false, fictitious and fraudulent overhead rates for indirect costs and correspondingly resulted in overpayments by the government in excess of $10 million,” the company admitted as part of its deferred-prosecution agreement.
More…



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