The Die Is Cast

July 7, 2011, at 6:53 pm
by Jim Sinclair in the category General Editorial |

My Dear Friends,

Have you thought about all the dramatics now taking center stage in the media? What compromise will be adopted that will allow for the US to avoid default by raising the debt ceiling?
Raising the debt ceiling is the problem and not by at means a solution. The race between dropping revenues and increasing costs will not be settled by politicians that do not even understand the problem.
The resignations of key economic personalities in the present Administration is systematic of the solid nature of the downward spiral that has gripped Western finances since the failure of OTC derivatives turned a normal recession into a long term depression.
There is no event that will turn the tide of the ramifications for poor economic management. Nothing can stop Gold, Silver, the Swiss and the Cando now.
The present drama of tax increases and spending cuts, like the release of oil, means nothing whatsoever even in the medium term.
The damage is done as the damage is cumulative. Day to day events are irrelevant. Day to day market activity is interesting but meaningless.
The die is cast. All we can hope is that gold is not headed to $12,500.
Regards,
Jim

Jim Sinclair’s Commentary

Here is the latest from John Williams’ www.ShadowStats.com.

June Employment, Unemployment and M3

- Payroll Survey Employment Down by 26,000, Before Revisions

- Household Survey Employment Plunged by 445,000

- June Unemployment Rates: 9.2% (U.3), 16.2% (U.6), 22.7% (SGS)

- Broad Money Supply Flattened in June

"No. 377: June Employment, Unemployment and M3"

Web-page: http://www.shadowstats.com

Jim Sinclair’s Commentary

The connective message is simple. There is no way out.

The Western World financial structure is totally FUBAR."

Jim Sinclair’s Commentary

Looks like they have a Madoff look alike. This is why the Government cannot default and why every bankruptcy will be papered over (international QE3).
The Banksters are now in trouble, having played as government insurance companies without an insurance regulator and without any reserves whatsoever that can guarantee the performance of another OTC derivative fraud.

Jim Sinclair’s Commentary

There is no stun here!

Poor jobs data stuns Wall Street, politicians
Meager 18,000 increase in June heightens worries over economy By Jeffry Bartash, MarketWatch
WASHINGTON (MarketWatch) — A disappointing U.S. jobs report has stunned Wall Street and triggered a fresh round of political recriminations as to who and what’s to blame.
The economy added a meager 18,000 jobs in June, stoking worries the U.S. economy is slumping again.
Here is a sample of reaction on Wall Street and in Washington.
• “Today’s report is more evidence that the misguided ‘stimulus’ spending binge, excessive regulations, and an overwhelming national debt continue to hold back private-sector job creation in our country.” — House Speaker John Boehner
• “I think these numbers are a call to action for Washington to stop bickering … and do the things to get the growth rate higher and create jobs. — Austan Goolsbee, chief economic adviser to President Barack Obama
• “We can see no silver lining in this employment report, which is weak, weak, weak.” — John Ryding, RDQ Economics
• “The details aren’t quite as bad as the headline, with private payrolls up 57,000, but that’s still pretty terrible when compared to the 240,000 average as recently as the three months to April.” — Ian Shepherdson, High Frequency Economics
• “The upshot is that exactly two years after the recovery began, broad labor market conditions haven’t improved at all.” — Paul Ashworth, Capital Economics
More…