Fiat system's abuse will force world back to gold standard, Rickards says

 

 

In The News Today

June 25, 2011, at 7:16 pm
by Jim Sinclair in the category In The News |  Print This Post |  Email This Post

 

Dear CIGAs,

You cannot eat your net worth. Consider a hobby farm before you double up on your position.



Being prepared is a great deal more than what your net worth is!

 

Jim’s Mailbox

June 25, 2011, at 2:18 pm
by Jim Sinclair in the category Jim's Mailbox |  Print This Post |  Email This Post

 

Greetings Jim,

Gold closed sharply lower during the last two sessions, but it is always important to remember that daily price fluctuations only have meaning when viewed in the proper context afforded by the big picture. Gold has been in a secular bull market since 2001 and the long-term cycle from late 2008 continues to exhibit a bullish translation.

As we noted last week, long-term corrections during secular bull markets usually begin during the fourth or fifth annual cycle after the formation of a Long-Term Cycle Low (LTCL). We are currently in the fourth annual cycle following the LTCL in late 2008, so a Long-Term Cycle High (LTCH) will likely occur either this year or in 2012. The current annual cycle from January is five months old and has been consolidating for the past two months near recent all-time highs.

Every long-term cycle high occurs in conjunction with an annual cycle translation change, so a failure to break out to new all-time highs during the next few months would be a potentially bearish sign. However, we are approaching the next Intermediate-Term Cycle Low (ITCL) and prices have formed a bullish consolidation pattern following the last Intermediate-Term Cycle High (ITCH).

Notice how gold has moved essentially sideways since peaking in late April. This type of "correction" reflects underlying strength and favors a subsequent breakout to new long-term highs after the next ITCL forms sometime during the next few weeks. Should a long-term breakout occur, the bullish translation of the current annual cycle would be reconfirmed, indicating that the forthcoming long-term cycle high will likely not develop until early 2012 at the soonest.

Best,
Erik McCurdy
Prometheus Market Insight

 

 

The Driver Of Employment "Gains" - Job Separations At Lowest In A Decade 

Submitted by Tyler Durden on 06/25/2011 22:18 -0400

While the fact that over the past few quarters private payrolls have increased has been widely touted by the administration as an indication that the economic recovery has taken root (even if recent NFP numbers have been decidedly below consensus), the fact is that spin of NFP data looks solely at one part of the monthly change in payrolls data: the new hires one. Alas, as the 12 Month rolling average chart straight out of JOLTs below demonstrates a just as important, and far less spin-friendly, part of the equation is jobs "separations." The simple math is that the monthly change in payrolls, establishment or household survey aside, is simply equal to new hires less total separations. And it is the latter that is now at decade lows. Said otherwise, payrolls are only up because of the rate of firings is the lowest in the past ten years now that companies have virtually nobody left to fire. This also means that as far as wage negotiations are concerned, workers will have absolutely no leverage. Which can be seen on the second chart. While having picked up modestly in the past several months, the percentage of people voluntarily quitting their job is nearly half of where it has been during the past decade. It also appears to be once again plateauing, now that the jobless recession has double dipped again, and "New Jobs" postings are once again on the wane. The bottom line, the "employment gains" have not been due to increased hiring, but due to ever more desperate people no longer daring to leave whatever job security they may have (and willing to take pay cuts as a condition of keeping said jobs). 

 

 

 

 

Guest Post: Illusions Versus Reality 

Our global society needs a reset. The insolvency of Greece or the growing US fiscal imbalance are only symptoms of a much deeper problem. It is easy for market participants to sit behind their red and green charts and point blame at "the Bernank." It is easy for homeowners to forego their mortgage payment to fund the expenses they are "entitled" to. It is easy for the Mortgage Bankers Association to "strategically default," after all it's a "business decision."... The solution to the world's problems is simple. People know the answer. The convict who lives on the lam for twenty years is relieved at their capture for they are tired of the hunt. People have debt they know they are slaves to. People have jobs they know brings them misery. People are in relationships they know brings them unhappiness. Yet they do nothing until they are forced to act. Until they are confronted they will continue to run waiting for the day of capture when they must face reality and begin the process of healing. 

 

 

 

 

LulzSec Hacker Group Dissolves Itself On Its 50 Day Birthday 

The infamous hacker group LulzSec, best known for hacking the website of an FBI affiliate, the Sony network, and even the CIA, has now officially shut down. Their final manifesto, which is reproduced below in its entirety, is summarized as follows: "For the past 50 days we've been disrupting and exposing corporations, governments, often the general population itself, and quite possibly everything in between, just because we could. All to selflessly entertain others - vanity, fame, recognition, all of these things are shadowed by our desire for that which we all love. The raw, uninterrupted, chaotic thrill of entertainment and anarchy. It's what we all crave, even the seemingly lifeless politicians and emotionless, middle-aged self-titled failures...Again, behind the mask, behind the insanity and mayhem, we truly believe in the AntiSec movement. We believe in it so strongly that we brought it back, much to the dismay of those looking for more anarchic lulz. We hope, wish, even beg, that the movement manifests itself into a revolution that can continue on without us. The support we've gathered for it in such a short space of time is truly overwhelming, and not to mention humbling. Please don't stop. Together, united, we can stomp down our common oppressors and imbue ourselves with the power and freedom we deserve. We hope we had a microscopic impact on someone, somewhere. Anywhere." Well, it was fun while it lasted. And so FedWire is safe again. So is, for the time being, the internet.

 

 

 

 

 

The Future Of Energy 

Submitted by Tyler Durden on 06/25/2011 20:24 -0400

Perhaps even more than exposing the instability of the worldwide economic ponzi system, so far 2011 has been most remarkable for fully demonstrating the fragility of the global energy complex, which in the aftermath of the Fukushima nuclear crisis (and the moratorium on nuclear energy in Germany now, and soon other places), and the MENA revolutions, have raised the question of what happens in a world in which crude is getting ever scarcer, while the one main legacy energy alternative, fission-based nuclear power, just took a giant step back. The topic of limitations in conventional and possibilites in alternative energy has gripped the general public's mind to such an extent that Popular Science magazine has dedicated its entire July edition to answering that very critical question. As PopSci says: "Oil’s amazing efficiency is one reason it remains in such high demand, especially for transportation, and it’s also why finding an alternative will be so difficult. But find one we must. We have already burned our way through most of the world’s easy oil. Now we’re drilling for the hard stuff: unconventional resources such as shale and heavy oil that will be more difficult and expensive to discover, extract, and refine. The environmental costs are also on the rise." So what is the existing line up of future alternatives to the current crude oil-dominated energy paradigm. Below we present the complete list.