Portuguese Government Rejects Austerity Plan, Government Collapses

Submitted by Tyler Durden on 03/23/2011 16:00 -0400

Just out:
PORTUGUESE PARLIAMENT REJECTS GOVERNMENT'S DEFICIT-CUTTING PLAN
PORTUGAL'S PARLIAMENT BACKS RESOLUTION AGAINST GOVERNMENT PLAN
Next up: government resignation, crisis, bail out, etc. You know the drill.

Guest Post: Investment Legends - “Dollar Collapse Inevitable”

Submitted by Tyler Durden on 03/23/2011 15:39 -0400

What will happen to the U.S. economy and the dollar in the near term? Will inflation increase dramatically? What is the outlook for gold, and where should you put your money? BIG GOLD asked a world-class panel of economists, authors, and investment advisors what they expect for the future. Caution: strong opinions ahead...

 

Portuguese President Prepares To Accept Jose Socrates' Resignation; Government Collapse Imminent

Submitted by Tyler Durden on 03/23/2011 14:37 -0400

From Market News: "Portugal's President Anibal Cavaco Silva is prepared to accept the resignation of Prime Minister Jose Socrates and is getting ready to call an election to choose a new government, Portuguese daily Jornal Publico reported on its website Wednesday evening....The political instability that would ensue from a collapse of the government, combined with market tensions that have pushed Portuguese ten-year bond yields to a euro-era high above 8%, seem likely to increase the pressure on Lisbon to seek a financial aid package from the European Financial Stability Facility and the International Monetary fund." Look for Portuguese, Irish and all out toxic fallout (pardon the pun) to be bought with impunity by JC Trichet as the entire market goes bidless.

Sprott Physical Silver Premium To NAV Hits Fresh All Time High

Submitted by Tyler Durden on 03/23/2011 10:33 -0400

Several days ago there were a few rather amusing anecdotes in the blogosphere that just because Sprott filed a selling shareholder shelf in PSLV, the ETF was about to crash and burn. What was not disclosed is that in 2011 there have been about 200 comparable shelves filed for public companies, yet nobody called for the imminent anihilation of 40% of the S&P. Stunningly, just because someone requests the right to sell an asset they own when said asset is trading at all time highs, apparently does not mean they intent to exercise said right. To wit: the premium to NAV for the Eric Sprott physical silver ETF just hit an all time record of 23%. We are confident that this is due to JPMorgan being massively long the metal, and also because anywhere one walks these days, physical silver lying on the ground is more prevalent than dog excrement. Also, those who decided to play the premium-NAV compression trade, are advised to promptly close it unless, of course, they are a TBTF bank.

Run-Rated Fukushima Radiation Release On Par With, And In Some Cases Greater Than, Chernobyl

Submitted by Tyler Durden on 03/23/2011 14:14 -0400

Even as the spin continues by both the media and nuclear energy advocates that the dangers from Fukushima are overblown, calculations done behind the scenes indicate that Fukushima and Chernobyl are actually very comparable in terms of radioactive particulate release, and in some cases, such as Cesium 137, Fukushima is already runrating as a worse catastrophe than Chernobyl. From Reuters: "The release of two types of radioactive particles in the first 3-4 days of Japan's nuclear crisis is estimated to have reached 20-50 percent of the amounts from Chernobyl in 10 days, an Austrian expert said on Wednesday. Based on measurements made at monitoring stations in Japan and the United States, Wotawa said the iodine released from Fukushima in the first three-four days was about 20 percent of that released from Chernobyl during a ten-day period. For Caesium-137, the figure could amount to some 50 percent." In other words, run rating the release of Cesium for a 10 day period, leaked radioactive Cesium is now about 120-150% of what it was during the full blow reactor explosion experiencing during Chernobyl. But yes, aside from the facts, watering the reactor that are certainly melting down (if haven't done so already) should surely have great benefits.

Gold, Silver And Oil As Market Yet To Price In Armageddon

Submitted by Tyler Durden on 03/23/2011 10:58 -0400

Judging by the incomprehensible action in both WTI and gold, both of which are surging, it appears the stock market may not have priced in the full impact of Bernanke's Put on the Armageddon. And after all, what disaster, man made or otherwise, can not be circumvented through the printing of a few [...]illion in new linen-cotton forms of monetary exchange.

Jim’s Mailbox

Posted: Mar 23 2011     By: Jim Sinclair      Post Edited: March 23, 2011 at 12:18 pm
Filed under: Jim's Mailbox

Explosive Setup in Gold and Gold Shares 

CIGA Eric

Gold, following historical precedence, is leading. Gold led the gold shares until 2010 breakout. The gold shares, despite the constant wall of worry, have played an impressive game of catch since 2009.
Gold is currently probing the upper trading channel (green circle). This is an explosive setup for both gold and gold shares. Yet, most investors ‘see’ only fear in the dips and doubt in the rallies. This suggests that recognition is still very early.
Gold and Gold Stocks Side by Side Comparison:
More…



Jim Sinclair’s Commentary
World shaking changes in the Middle East. Peak oil production. Inevitable hyperinflation. All attention on Japan as markets forget the growing foundation of international dislocation.
Stay focused. Stay discipline.