Sunday, July 31, 2011

 

 

 

Goldman's Jim O'Neill "Go On President Obama And Congress; Give Us A Nice Pleasant Summer Surprise!"

While there are some undertones of caution in the latest letter from the head of Goldman's worst performing group ("I suspect the reason why the bond market has rallied and the Dollar and equities have fallen, is because there is going to be a budget deal, which the markets worry will weaken the cyclical GDP growth outlook further"), his bottom line (literally) is precisely what everyone on Wall Street, and everyone else who writes rants against responsible fiscal management (wait, wasn't Congress responsible 1 year ago? or two years ago? No of course not. It became an emergency a week ago) thinks. And it is as follows: "Go on President Obama and Congress; give us a nice pleasant Summer surprise!" Indeed, when you cut out all the hollow rhetoric of all those whose livelihood depends on the status quoTM and on "borrowing" from the future (cold fusion will certainly help with our energy problems one day... so will the tooth fairy), this is what it is all about.

 

 

Your going to need Physical Silver and Gold...Buy the Dips

Prepare For A Lost Decade Or More

Admin at Jim Rogers Blog - 4 hours ago
"Prepare for a lost decade or more" - in RT.com *Jim Rogers is an author, financial commentator and successful international investor. He has been frequently featured in Time, The New York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times and is a regular guest on Bloomberg and CNBC.* 

Highlights From This Morning's "Meet The Press"

Below are the key clips from this morning's Meet The Press which is devoted exclusively to proponents of the status quoTM, whose entire argument boils down to the syllogistic: "cut spending yes... but not today...never today" In fact, it is best to make any cuts the next administration's problem. So assuming Obama gets reelected, and there is another debt ceiling hike, which there will have to be, it means about $7 trillion on top of the currently debated $3 trillion, whoever inherits this mess from Obama (who in turn inherited his mess from Bush, who in turn inherited his mess from Clinton, and so on), will have $24 trillion debt to deal with on day 1, with about $16-17 trillion of GDP. And that person will have to cut spending? What idiot would want that job? Anyway, we fully expect the paid government workers from the rating agencies to shortly upgrade the US to AAA+ on renewed growth prospects courtesy of 140% debt to GDP in 5 years...and that excludes the $7 trillion in off balance sheet GSE debt.





Round Up Of This Morning's Key Political Soundbites

With a debt ceiling deal now a given and purely a matter of dotting i's and crossing t's, potentially pending a several day debt "breathing room" extension to be approved by Obama, whose TV appearance we expect shortly to provide a conclusion to this "grand compromise" farce, here are some of the key soundbites from the three primary constituents as of their media appearances this morning.





Key Macro Catalysts In The Upcoming Week

Goldman's Themistoklis Fiotakis summarizes the main events in the upcoming week, which will likely see a very short term bout of buying frenzy on the debt ceiling deal, following by the realization that America can kiss fiscal stimulus goodbye and that real GDP is set to contract over the next quarter to a negative print as the last benefits from QE2 vanish and are replaced by nothing. Also, with the upcoming weekly earning focusing on financial companies as announced yesterday, there will be little help from the only bright spot in the so-called economy, especially with the flashing red sign of the July Nonfarm Payroll Print (consensus +95K, Goldman +50K, even LaSagna +50K) due on Friday. The half life of Europe's second bailout was under 5 days. We give America about the same.







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In The News Today

July 30, 2011, at 8:58 pm
by  

My Dear Friends,

The two most likely resolutions to the political debate over the US debt are:

1. A compromise that does nothing meaningful to cut entitlement spending and other set government spending.

2. A downgrade of US debt by major rating agencies.

Either choice is extremely bullish for Gold

Enjoy your weekend,

Jim



Jim Sinclair’s Commentary

Today’s events in the political circus of US Debt.

Late stab at debt-limit deal to avert US default
By DAVID ESPO , 07.30.11, 08:43 PM EDT
WASHINGTON — After weeks of intense partisanship, Republican congressional leaders and President Barack Obama made a last-minute stab at compromise Saturday to avoid a government default threatened for early next week.
But there was no undisputed evidence of progress by day’s end, only expressions of anxiety among lawmakers that a potentially crippling blow to the nation’s economy was drawing uncomfortably close. The deadline for raising the nation’s debt limit and averting an unprecedented U.S. default was just three days away.
“We are now fully engaged, the speaker and I, with the one person in America out of 307 million people who can sign a bill into law,” Senate Republican leader Mitch McConnell said at a joint news conference with House Speaker John Boehner.
“I’m confident and optimistic that we’re going to get an agreement in the very near future and resolve this crisis in the best interests of the American people.”
But McConnell’s upbeat assessment triggered an unusually pointed rebuttal from Senate Majority Leader Harry Reid.
More…
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