Double-digit Inflation Has Arrived


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The View From The Bridge

May 18, 2011, at 11:34 am
by Jim Sinclair in the category General Editorial |  Print This Post |  Email This Post

Dear Extended Family,
From outside of North America looking back, the opinion in the Eastern world is that in the last month North America confiscated its citizen’s retirement funds and invaded a country.
The view from this bridge does not enjoinder confidence in the US dollar. It sees gold as a preferential storehouse of value rather than a currency of a spend thrift brute.
The view from this bridge sees traffic crossing it no longer from east to west, but now financially from west to east.
The safest place to be during hyperinflation is not in the midst of brutes, but amongst kind people.
In my opinion, the safest place to be is in Tanzania working, producing, giving employment and respect to the locals, working with the people for mutual best interests.

Times have changed. Change with them and prosper. If you choose to fight the change you will financially perish.

Respectfully from the bridge,
Jim

Japanese Economy Collapses: Q1 GDP Drops At Double Consensus Rate, Epic Nominal Plunge Of -5.2% 

Submitted by Tyler Durden on 05/18/2011 21:14 -0400

Confirming once again that Wall Street economist (and sell side in general) is the most useless profession in the world (though gladly accepting a 7 figures compensation), is the latest data out of Japan which is yet another stunner to most, as nobody, nobody, could have possible predicted that the Japanese economy would literally fall off a cliff in Q1, plunging at a 3.7% rate (down from -3% previously), which is double the consensus print of -1.9%. DOUBLE. And in nominal terms the collapse was simply epic: -5.2%! And yes, this is officially a recession. Of course, anyone reading Zero Hedge would have been perfectly aware of this outcome. 4 short days ago we said: "Increasingly we have come to believe that the real marginal economy over the next several quarters will be neither that of the contracting US, nor that of the rapidly tightening, yet still very much inflationary China, but the (arguably) third largest one: that of Japan." Today our prediction is more than confirmed. And instead of hiding deep in the whatever holes these morlocks cralwed out of, Bloomberg for some inexplicable reason continues to look to their blatantly horrendous opinion. “The negative economic impact from the disaster will be on full display during the second quarter,” Hiroshi Watanabe, a senior economist at the Daiwa Institute of Research in Tokyo, said before the report. “This recession may be deep, but short.” Yeah, sure. Short. We'll just hold our breath. And for it to be short, it means that the BOJ will be forced to print a few hundred trillion in Yen asap (just as we predicted here and here) right? Which in turn means that the USDJPY will surge and shift the Japanese recession even faster over to the US. And yes it means that the turbo print button among the central banks will get the F5 treatment as the second round of currency devaluation completes a lap.

Client #10 Emerges: Spitzer Madam Says She Provided Prostitutes For DSK In 2006 

Submitted by Tyler Durden on 05/18/2011 20:32 -0400

When we first speculated that many women would step up and claim they were being abused by DSK a few days back, we had no idea just how right we would be. Yet even we had no idea about the moral caliber of the women doing the "stepping up." Well, The Telegraph has just released the bombshell. "Dominique Strauss-Kahn hired prostitutes from the "Manhattan Madam" who infamously also served Eliot Spitzer, the disgraced former Governor of New York, she claimed on Wednesday night. Kristin Davis said she provided young women for the IMF chief in 2006, as he ran for the French Socialists' presidential nomination, and that one complained about his "aggressive" behaviour. "He was a client of my agency," she told The Daily Telegraph. "When men abuse women I'm no longer going to protect their identities". As for DSK's preference: ""He wanted an 'All-American girl', with a fresh face, from the mid-West," she said. "A girl in January 2006 complained he was rough and angry, and said she didn't want to see him again"."And the hits just keep on coming...

Philly Fed Finds Economic Conditions For Low And Moderate-Income Families Deteriorated Under The "Wealth Effect" Mandate 

Submitted by Tyler Durden on 05/18/2011 20:20 -0400

While many outside observers have correctly been arguing that the Fed's third mandate, that of the "wealth effect" has done little if anything to improve the lives of those not at the very top of the wealth food chain, there has been no confirmation of this "speculation" from the Fed. Not for much longer though. In its first quarter community outlook survey looking at the economic factors of services focused on low- and moderate-income households in the Third Fed District, the Philly Fed finds the the lower and middle classes are not only not benefiting from the Fed's financial experimentation, but that they are in fact being adversely affected by changes in the broader economy from Q4 2010 to Q1 2010 as the table below demonstrates. As the Fed confirms: "Overall, the negative trend identified in the first Community Outlook Survey in January 2011 continued. All diffusion index values remained below 50 except for demand for service providers’ services. All seven indicators for this survey were below the future expectations reported by respondents to the previous survey." In other words, while the lower and middle classes, as proxied by services geared toward them, continue to hold on the "hope and change" their current existence and living conditions are deteriorating.




Why Bernanke Didn't Announce QE 3.