Nowhere near a top in gold, Sinclair tells King World News

 

Doomsday Scenario from the Treasury Department...

 

$2 Trillion Mile Marker on Road to Perdition

 

Stagflation, Made In China Edition 

Submitted by Tyler Durden on 05/10/2011 22:10 -0400

So much for the world's largest economy no longer overheating. CPI came ahead of expectations yet most other key economic indicators confirmed a slow down in the economy, even as borrowing appears to be picking up once again. Could China be exhibiting the very first symptoms of our very own stagflationary squeeze?

• CPI at 5.3%, Consensus at 5.2%, previous 5.40%
• PPI at 6.8%, Consensus at 7.0%, previous 7.3%
• Industrial Production up 13.4%, Consensus of 14.7%, previous at 14.8%
• Retail Sales 17.1%, Consensus of 18.0%, previous 17.40%

But... But... It Was Supposed To Go To Zero 

Submitted by Tyler Durden on 05/10/2011 21:31 -0400

What kind of goddamned bubble pops and then goes right back up? Oh wait, did the Central Banks retract the 8-K where they all promised they are done printing for ever and ever (granted, countersigned by Linda Green and Jean Claude Junker, and edited by the WSJ)? That must be it! Oh, and gold at $1,521, back to those lofty, long ago levels from April 27. Cue CNBC on precious metals popping. And yes, that giant sucking sound is the CME preparing silver margin hike 6 through 666.

NYSE Short Interest Jumps To Highest In 2011, Just In Time For The Squeeze 

Submitted by Tyler Durden on 05/10/2011 19:42 -0400

And just like that, the short trap is set: following some sideways movement over the past several months, in which the market grotesquely, mockingly did not proceed in a straight line up, unlike the 8 month "Birinyi Ruler" period from August to March which extrapolated to about S&P 2,800 in 2 years, some (naive) investors speculated that the Fed may be losing control of the market and proceeded to short ridiculously overvalued stocks, that no longer reflect not only the economy on Earth but probably on any other life-supporting planet in the known and unknown universe, in dimensions from 3 through 10 or anything else reasonably allowed by Kaluza-Klein. As a result, just announced short interest on the NYSE for the period ending April 29 has hit a fresh 2011 high, climbing to 13.094 billion shares from 13.05 billion . Alas, this comes just as the Treasury will do everything, and we mean everything, in its power to ram the market from the s to the p orbital, trap all the shorts, force the custodians to pull every share on borrow there is, and generally to make selling stocks illegal, probably coupled with a few thousand margin hikes in everything from precious metals to tetrahydrocannabinol over the next month just to keep traders' eyes focused on the ball, simply so it can divest some of its tens of billions in shares of AIG stock and claim victory over the tin foil clad skeptics. As usual, those hoping that the neo-feudal stock market is fair and/or efficient are about to be KYed.

In The News Today

May 10, 2011, at 12:44 pm

Jim Sinclair’s Commentary

Currency induced cost push inflation, not simply crop circumstances.






Jim Sinclair’s Commentary

My former floor partner and good friend Yra Harris has some very interesting comments relevant to today.

Notes From Underground: Strategic and Economic Dialogue … Enough SED By Yra 

Chinese and U.S. officials have been meeting in Washington for the past two days under the aegis of the annual forum of Strategic and Economic Dialogue (SED). All the news releases from these meetings sound so hopeful about increased cooperation between the world powers. The Chinese feed the U.S. policy makers with words of promise about the SINO economy becoming more market-oriented and the American delegation tells the Chinese that they will be fiscally responsible and do all they gain to maintain the value of U.S. paper assets that fill the vaults in Beijing. An hour after the Chinese head home, the financial media will no doubt be hungry for some more morsels of hope. So it goes and it will continue: Both sides pledging fidelity the vibrancy of the global economic order.
Geithner was trumpeting the news that the Chinese promised to level the playing field for U.S. investors in China. The only problem is we don’t know WEN. The U.S. and China will always see differently as they operate on different timelines. The U.S. is worried about quarterly profits and four-year presidential cycles. The Chinese have a far different time frame and will let events unfold in a much longer period. (THE FAMOUS LINE BY CHOU EN LAI TO HENRY KISSINGER WHEN MR. CHOU WAS QUIZZED ON HIS VIEWS ABOUT THE FRENCH REVOLUTION AND RESPONDED: “IT’S TOO EARLY TO TELL.”) There lies a great chasm between promises and deeds.
The news keeps pouring out of Europe and the only thing we know for sure is that everything that emanates from Brussels is a LIE. The Eurocrats spend their time denying “rumors” that turn out to be true and “truths” that turn out be rumors. There is an emergency meeting; there is no meeting. The Greeks are leaving the EURO. No, the Greeks are not leaving. There is a crisis; there is no crisis.
The bottom line is that when so many policy makers have been so disingenuous for so long, nobody has any idea of the FACTS. One thing that we can be certain of is that before any of the PIIGS depart from the EURO a massive audit will have had to be done to measure the costs of staying in versus the costs of leaving the EURO. The costs to be measured are not the costs to the GREEKS or the other “profligates” but rather to the healthy center.
More…




Jim Sinclair’s Commentary

Click chart to enlarge today’s 30 Year Bonds chart in PDF format.





Consumers and Investors Seek Protection With Guns and Gold.



Perception, Inception and the Trojan Horse Money Meme - Part Two of Four

Posted by: Cognitive Dissonance

Post date: 05/10/2011 - 18:35

If when reading the various Fed speeches and economist position papers you were to strike out all the numerical mumbo jumbo, what it all comes down to is a massive psychological operation being perpetrated upon not only the American people, but the global village.

Banks Offer Paltry $5 Billion In Exchange For Full Expungement Of Robogate Charges And Complete Release Of Any Future Claims 

Submitted by Tyler Durden on 05/10/2011 20:59 -0400

And there were those who thought that the $20 billion demanded by state and federal officials of banks caught in various acts of robosigning fornication was a joke. According to the WSJ, "The nation's biggest banks are willing to pay as much as $5 billion to settle claims by federal and state officials of improper mortgage-servicing practices." Needless to say this is a sham of a farce of a "settlement", and amounts to one quarter in trading perfection for the likes of the afore discussed JPM, BofA or Goldman. Recall that Goldman pays well over three times this amount in bonuses each year. On the other hand, this is merely a counteroffer to the $20 billion preliminary bid. Which means that the final number to put the entire robosigning affair behind us will be about $10 billion give or take. And banks can go back to doing what they do best: post 0 trading losses per quarter, and other such infinite sigma events.