Monstrous raid/Japan officially at level 7/

Harvey Organ, Tuesday, April, 12 2011

Monstrous raid/Japan officially at level 7/

 

Nothing to see here...Go back to watching American Midol and Dancing with the Idiots...
Inflation Actually Near 10% Using Older Measure

Using the methodology in place at that time former Federal Reserve Chairman Paul Volcker was appointed in 1979, inflation is near double digits.

Inflation Not a Threat? Most Consumers Aren't So Sure

Hourly Action In Gold From Trader Dan

Posted: Apr 12 2011     By: Dan Norcini      Post Edited: April 12, 2011 at 5:23 pm
Filed under: Trader Dan Norcini

Dear CIGAs,
Click chart to enlarge in PDF format with commentary from Trader Dan Norcini
For further market analysis and commentary, please see Trader Dan’s website at www.traderdan.net

Jim’s Mailbox

Posted: Apr 12 2011     By: Jim Sinclair      Post Edited: April 12, 2011 at 2:49 pm
Filed under: Jim's Mailbox

Jim Sinclair’s Commentary
This is a product of currency induced cost push inflation at the least desirable time in the long weather cycle.

Commodities Moving from Left to Right CIGA Eric
Talk of a bubble ready to pop is premature. Shorting a trend moving from lower left to upper right is dangerous.
Spot Commodity Prices: CRB Spot Index (1947 – Present);
16-Raw Industrial Spot Price (1935-1947);
Great Britain Wholesale Price of All Commodities (1885-1935) and Z Scores from Primary Trend
Headline: Japan Rice Buying May Outstrip Supply on Hoarding, Marubeni’s Shibata Says
Japanese consumers may almost double rice purchases this fiscal year, driven in part by contamination “rumors” surrounding the nation’s worst earthquake and nuclear disaster, as demand outstrips crimped domestic production.
Hoarding may result in purchases of as much as 15 million metric tons, from about 8 million tons last year, making it impossible for Japan’s farmers to meet demand after a quake- generated tsunami washed over paddies in an area representing 18 percent of the country’s output, said Akio Shibata, head of the research unit at Marubeni Corp., in an interview in Tokyo.
Source: bloomberg.com
More…

Jim Sinclair’s Commentary
Here is John Williams’ update for today. If you haven’t already, subscribe to his essential service.

- Near-Term Hyperinflation Risk Continues to Progress
- Trade Deficit Should Be a Negative for First-Quarter GDP
"No. 362: Trade, Liquidity, Hyperinflation Watch"
Web-page: http://www.shadowstats.com

"Deja Vu All Over Again" - Jeff Gundlach's Latest Set Of Contrarian Observations

Submitted by Tyler Durden on 04/12/2011 19:05 -040

As usual, Jeff Gundlach provides one of the best, most comprehensive overviews of the economy with a fixed income/rates emphasis. 97 pages of pure facts as the voiceover was given during the earlier webcast, allowing the reader come to their own set of conclusions. 

 

 

 

Here Comes Abacus V 2011: Former Head Of JPM's Structured Products Desk To Be Charged With Securities Fraud For CDO Transactions

Submitted by Tyler Durden on 04/12/2011 18:29 -0400

Considering it was the charges of securities fraud levelled at Goldman last year (subsequently settled) in late April that were the primary catalyst for the start in the market sell off, it would not be surprising that in a year which so far is following the script of 2010 verbatim, that we should get another allegation of insider trading by a major bank in something relating to CDO fraud, just to seal the guarantee on QE3. Well, guess what. We just did. As Bloomberg's Joshua Gallu and Jody Shenn noticed first, in the FINRA Brokercheck record of one Michael Llodra, there is a curious announcement. To wit: "MR. LLODRA RECEIVED A WELLS CALL FROM THE STAFF OF THE US SECURITIES AND EXCHANGE COMMISSION INFORMING HIM THAT THEY ARE CONSIDERING RECOMMENDING THE COMMISSION COMMENCE AN ACTION CHARGING HIM WITH VIOLATING CERTAIN PROVISIONS OF THE FEDERAL SECURITIES LAWS BASED ON HIS INVOLVEMENT IN THE SALE OF A STRUCTURED PRODUCT IN 2007." And just who is Mr. Michael Llodra? Oh only the global head of structured-product collateralized debt obligations at a little firm known as JPMorgan. And while JPMorgan has not been named yet, this news coming out a day ahead of JPM earnings is bad to quite bad. Recall that the Abacus process against Goldman started with the filing of Wells notices against Fab Tourre and his supervisor (which were never disclosed in time - a fact observed then by Zero Hedge - and subsequently ended up costing GS a little pocket change in FINRA appeasement fees). Does this mean the SEC is about to launch an all out assault against JPM at some point in the indeterminate future? Well, for an agency which is in dire need of improving its image, this just may be the case. Not to mention that the double beneficiary of this action would be none other than Goldman Sachs: a market sell off here would guarantee QE3 and certainly weaken the firm's primary competitor. Two birds with one porn-addicted regulator.

Van Hoisington Eviscerates QE2: Full Q1 Review And Outlook

Submitted by Tyler Durden on 04/12/2011 16:47 -0400

If the objectives of Quantitative Easing 2 (QE2) were to: a) raise interest rates; b) slow economic growth; c) encourage speculation, and d) eviscerate the standard of living of the average American family, then it has been enormously successful. Clearly, with the benefit of 20/20 hindsight these results represent the Federal Reserve’s impact on the U.S. economy, regardless of their claims to the contrary...Why the Fed would believe the economy could benefit from the addition of $600 billion (the QE2 target) in reserves to a banking system that already had over $1.1 trillion in unused, idle, but potentially inflationary reserves on hand nearly defies understanding. The action, however, was not lost on holders of the $8 trillion Treasury securities outstanding. This increase in the level of interest rates occurred, not only during QE2, but in QE1 as well. Thus the Federal Reserve engineered a rate increase, and the injection of excess reserves had several other deleterious ramifications for the U.S. economy. 

 

 

 

Matt Taibbi Asks Why The Fed Gave $220 Million In Bailout Money To The Wives Of Two Morgan Stanley "Bigwigs"

Submitted by Tyler Durden on 04/12/2011 12:51 -0400

Matt Taibbi has resurfaced with another stunner of Wall Street impropriety which will lead to merely more silence, even more unanswered questions and be quickly buried by the kleptocratic oligarchy: "It's hard to imagine a pair of people you would less want to hand a giant welfare check to — yet that's exactly what the Fed did. Just two months before the Macks bought their fancy carriage house in Manhattan, Christy and her pal Susan launched their investment initiative called Waterfall TALF. Neither seems to have any experience whatsoever in finance, beyond Susan's penchant for dabbling in thoroughbred racehorses. But with an upfront investment of $15 million, they quickly received $220 million in cash from the Fed, most of which they used to purchase student loans and commercial mortgages. The loans were set up so that Christy and Susan would keep 100 percent of any gains on the deals, while the Fed and the Treasury (read: the taxpayer) would eat 90 percent of the losses. Given out as part of a bailout program ostensibly designed to help ordinary people by kick-starting consumer lending, the deals were a classic heads-I-win, tails-you-lose investment."