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In The News Today

Posted: Nov 24 2010     By: Jim Sinclair      Post Edited: November 24, 2010 at 1:03 pm
Filed under: In The News

Dear CIGAs,
This comes from a reliable publication in China. It is strange it was not reported this way in the US or Europe yesterday.
It was considered a trivial step for bringing the Yuan into greater use and maybe make it more, as the Western media articles said, market related.
The Chinese did it therefore the Chinese ought to know what they did, and why they did it.

China, Russia quit dollar By Su Qiang and Li Xiaokun (China Daily)
Updated: 2010-11-24 08:02
St. Petersburg, Russia – China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.
Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.
"About trade settlement, we have decided to use our own currencies," Putin said at a joint news conference with Wen in St. Petersburg.
The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.
The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said.
"That has forged an important step in bilateral trade and it is a result of the consolidated financial systems of world countries," he said.
Putin made his remarks after a meeting with Wen. They also officiated at a signing ceremony for 12 documents, including energy cooperation.
The documents covered cooperation on aviation, railroad construction, customs, protecting intellectual property, culture and a joint communiqu. Details of the documents have yet to be released.
More…

Jim’s Mailbox

Posted: Nov 24 2010     By: Jim Sinclair      Post Edited: November 24, 2010 at 12:47 pm
Filed under: Jim's Mailbox

Coincidentally, Personal Income and Spend Surge Before the Holidays CIGA Eric

Personal Consumption As A % of Personal Income:
Investors that use personal income and spending numbers for historical comparisons today prefer government statisticians doing the thinking about the economic world for them. In the commentary, If you don’t like the message conveyed by economic time series, revise it!, I revealed how many of economic time series have been adjusted to maintain the economic illusion. In many cases, there have been multiple adjustments since 2000.
The alteration of personal income and outlays should serve as all illustration of the growing disconnect between actual and statistical economic reality. The size of the distortion will only worsen as the sovereign debt crisis intensifies.
Headline: Personal income, spending higher
With the holiday shopping season just around the corner, both personal income and spending are on the rise, the government said Wednesday.
Personal income rose 0.5% in October, after a revised unchanged rate in September, while spending by individuals ticked up to 0.4% from a revised 0.3% the prior month, according to data released by the Commerce Department.
Source: money.cnn.com
More…


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