Goodbye Irish Sovereignty: EU Commissioner Olli Rehn Issues His First Directive As Overlord Of The Emerald Isle

 

Simon Black Advocates Leaving America As The "Most Effective" Way To Fight The Battle With "The Mob-Installed Government Beast"

 

Neil Reynolds: Could gold once again be our guide?

 

Jim Sinclair’s Commentary
Peter Schiff makes an interesting comparison.

In The News Today

Posted: Nov 29 2010     By: Jim Sinclair      Post Edited: November 29, 2010 at 12:51 pm
Filed under: In The News

Jim Sinclair’s Commentary
Please review this important video. Putin speaks on the Euro. Russia and China takes this opportunity the crisis gives to get closer to Euroland.
Historically when everyone runs from a situation Russia and China take the opportunity to benefit.
The banksters will move to Euroland to profit from a much closer economic relationship with Russia and China. The West has no concept of this.






Putin: Russia will join the euro one day
Vladimir Putin said it is "quite possible" that Russia will one day join the eurozone and create a currency that would eclipse the US dollar as the global reserve standard. By Louise Armitstead 5:30PM GMT 26 Nov 2010
Speaking at a conference in Germany the Russian prime minister, who is in the country for talks with Chancellor Angela Merkel, said he was convinced the euro would stabilise and strengthen despite the current sovereign debt crisis.
He said: "Yes, there are problems. But the economic policy of the European Central Bank and of the governments of leading European economies … convinces me that the stability of the euro will be ensured."
He added: "We know there are problems in Portugal, Greece, Ireland and the euro is wobbling a bit. On the whole it is a solid, good currency and it should take its place, its role as a reserve currency."
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Jim Sinclair’s Commentary
Just in case you have forgotten, do not be lead down the primrose path by a temporary mirror image to the euro versus the US dollar.

Dollar to Become World’s ‘Weakest Currency,’ JPMorgan Predicts November 17, 2010, 10:41 PM EST
By Shigeki Nozawa
Nov. 18 (Bloomberg) — The dollar may fall below 75 yen next year as it becomes the world’s “weakest currency” due to the Federal Reserve’s monetary-easing program, according to JPMorgan & Chase Co.
The U.S. central bank, along with those in Japan and Europe, will keep interest rates at record lows in 2011 as they seek to boost economic growth, said Tohru Sasaki, head of Japanese rates and foreign-exchange research at the second-largest U.S. bank by assets. U.S. policy makers may take additional easing steps following the $600 billion bond-purchase program announced this month depending on inflation and the labor market, he said.
“The U.S. has the world’s largest current-account deficit but keeps interest rates at virtually zero,” Sasaki said at a forum in Tokyo yesterday. “The dollar can’t avoid the status as the weakest currency.”
The Fed said on Nov. 3 it will buy $75 billion of Treasuries a month through June to cap borrowing costs. The central bank has kept its benchmark rate in a range of zero to 0.25 percent since December 2008. The Bank of Japan on Oct. 5 cut its key rate to a range of zero to 0.1 percent and set up a 5 trillion yen ($59.9 billion) asset-purchase fund.
The dollar traded at 83.38 yen as of 12:04 p.m. in Tokyo after falling to a 15-year low of 80.22 on Nov. 1. The greenback declined to post-World War II low of 79.75 yen in April 1995. The U.S. currency has declined against 12 of its 16 most-traded counterparts this year, according to data compiled by Bloomberg.
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Jim Sinclair’s Commentary
Never take a government job.
The message here clearly leaves the entire burden on the Federal Reserve. That in turn means QE to infinity.

President Obama to Announce a Pay Freeze for Most Federal Workers By PETER BAKER
Published: November 29, 2010
WASHINGTON — President Obama plans to announce a two-year pay freeze for civilian federal workers on Monday in his latest move intended to demonstrate concern over sky-high deficit spending.
The president’s proposal will effectively wipe out plans for a 1.4 percent across-the-board raise in 2011 for 2.1 million civilian federal government employees, including those working at the Defense Department, but the freeze would not affect the nation’s uniformed military personnel. The president has frozen the salaries of his own top White House staff members since taking office 22 months ago.
“Clearly this is a difficult decision,” said Jeffrey Zients, deputy director of the Office of Management and Budget and the government’s chief performance officer. “Federal workers are hard-working and dedicated.” But given the deficit, Mr. Zients added, “we believe this is the first of many difficult steps ahead.”
The pay freeze will save $2 billion in the current fiscal year that ends in September 2011, $28 billion over five years and more than $60 billion over 10 years, officials said. That represents just a tiny dent in a $1.3 trillion annual deficit, but it offers a symbolic gesture toward public anger over unemployment, the anemic economic recovery and rising national debt.
Mr. Zients said the president planned to announce the plan on Monday because of an approaching legal deadline for submitting a pay plan to Congress. But by doing it now, the president also effectively gets ahead of Republicans who have been talking about making such a move once they take over the House, and assume more seats in the Senate, in January. Some Republicans have gone further, proposing to slash federal worker salaries.
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Jim’s Mailbox

Posted: Nov 29 2010     By: Jim Sinclair      Post Edited: November 29, 2010 at 12:38 pm
Filed under: Jim's Mailbox

Pluses, Minuses for Muni Bonds
CIGA Eric
It has been shown time and time again that on Wall Street, people very often fail to see the thing that is right in front of them.
Jesse Livermore

This is the principle reason why investors must follow money rather then media-driven reality. The ability of money to expand and multiple depends on its ability to discern the truth despite the experts.
The municipal bond market continues to show signs of stress. Rising yields and increasing volatility depict a market once considered boring. This highly unusual action, nevertheless, has gone nearly unnoticed. The bailouts in the EU remain on the center stage for the media outlets. While out of sight and mind may shape perceptions about state of municipal finances, it has no bearing on capital flows. Similar to the weak nations within the EU, capital smells blood in the water. They will press a weak position until a bailout of the State, either direct or indirect, is required.
Investing in municipal bonds used to mean one thing: boring.
Stodgy governments, authorities and municipalities would issue bonds backed by tolls, taxes and other income. The yields weren’t always splendiferous, but they were usually tax-free, and the issuers almost never defaulted. The ability to raise taxes helped ensure that bondholders would almost always get repaid.
But a combination of factors has turned the muni-bond market into another white-knuckle investing zone. A number of states (hint: California) face brutal budget equations. Local governments have very challenging pension obligations that will require more muni-bond financing. And the federal government’s big spending ways are crowding the fixed-income market
Source: online.wsj.com
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Dear Eric,
Dr. Roubini just discovered this hidden truth?
Regards,
Jim

Targeting the Weak Hands Is Easy Money CIGA Eric
Let’s face it; this mess is not limited to Greece, Ireland, Portugal, Italy, France, and/or unique to the EU zone. The state of the US union is equally as fragile despite mono-focused analysis of a multidimensional problem. California, New York, Illinois, etc. have seen borrowing costs soar as they attempt to fix their budgetary holes with more debt. When capital finishes its “Euro play”, it will move against the weak hands to force another centralized bailout. Its easy money to press the weak hands, and the local governments will scream “save me” so loud that it will be impossible to ignore.
Headline: Roubini sees Portugal bailout, possibly Spain as well
Portugal will take an international bailout and Spain may be next as Madrid has underestimated the cost of cleaning up Spain’s financial system, economist Nouriel Roubini said on Monday.
Greece will eventually have to restructure its debt and a weak growth outlook will prompt central banks, including the European Central Bank, to ease policy further, said Roubini, who is known as Dr. Doom for predicting the credit crisis before 2007. He also warned on Monday that there was still the risk of a double-dip recession in the United States.
Source: finance.yahoo.com
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