Tuesday, July 12, 2011

Harvey Organ, Tuesday, July 12, 2011

Problems around the Globe Intensifies/Gold reaches record levels in USA dollars/British Pounds/Euro gold.





The Fed is Approaching The End Game… Are You Ready?




Trader Dan's Market Views - 1 hour ago
Judging from the price action in gold, it seems as if all three factors that are currently driving this market are gelling together into one powerful inducement to buy the yellow metal. As discussed in my recent radio interview over at King World News on the Weekly Metals Wrap, sovereign debt fears originating out of Europe, inflation fears in China and elsewhere in that region of the globe, and a continuation of the extremely loose monetary policy currently in place by the Fed are producing a toxic mix for the bears in the gold pit as buying momentum is driving them back as bidders ...
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Guest Post: Here's Why Small Business Isn't Hiring, Part II 

Continuing our exploration of why small business isn't expanding and hiring: here are four more deeply pernicious structural dynamics crushing small business. Yesterday I addressed this issue in Here's Why Small Business Isn't Hiring, and Won't be Hiring; Part II covers three other three systemic issues: 1. The real estate bubble completely mispriced/overvalued commercial real estate; 2. Financing is cheap to global Corporate America and costly to nonexistent to startups and expanding small businesses; 3. Crony capitalism doesn't like competition; it seeks monopoly or a shadow cartel, imposed and maintained by the regulatory agencies of the Central State; 4. Overlapping regulation designed to suppress competition, benign neglect/hostility from government bureaucracies obsessed with self-preservation and lack of financing make it impossible to scale up a success business in the real world. 
 
 
 
 
 
The Zero Hedge Effect – Crossing the Event Horizon - Part 1 of 2  
Cognitive Dissonance
07/12/2011 - 15:13
Anything that can empower or free us is removed, restricted or demonized, thus severely limiting our innate and natural ability to heal, grow and flourish. At best we are told we should restrict ourselves to applying band aids and hydrogen peroxide. Anything more than this should be left to the professional mind magicians and the grand keepers of the public myths. 
 
 
 
 

In The News Today

My Dear Friends,

Talk of further Fed easing if the economy continues to weaken put gold through the technical overhead resistance, driving the algorithms bullish as gold sets up for $1600.
There is no question the economy is going into a double dip which will be lower on the second dip. Quantitative easing will continue with vigour.
Gold is setting up for the $1600- $1650 battle royal.
Regards,
Jim




Jim Sinclair’s Commentary

Who needs nuclear weapons when you can simply downgrade and bust a country?

Ireland Bonds Downgraded
By THE NEW YORK TIMES
Published: July 12, 2011

Moody’s Investor Service downgraded Ireland’s government bonds on Tuesday, saying the country was likely to need another bailout before its finances recover.
The credit-ratings company cut the bonds by one notch, to Ba1 from Baa3, to junk status, raising the nation’s cost of borrowing money.
The move was certain to raise investor fears that the debt crisis overwhelming the Greek economy would spread. Last week, Moody’s similarly cut Portugal’s credit ratings, and the economies of Italy and Spain also were seen by financial markets as vulnerable.
“Ireland is likely to need further rounds of official financing before it can return to the private market,” In its downgrade, Moody’s said in its downgrade assessment. It also cited “the increasing possibility that private sector creditor participation will be required as a precondition for such additional support,” in line with recent European Union government proposals.
“Although Moody’s acknowledges that Ireland has shown a strong commitment to fiscal consolidation,” Moody’s added, the “implementation risks remain significant, particularly in light of the continued weakness in the Irish economy.”
More…




Jim Sinclair’s Commentary

The Chinese and Down Under. A new concept in Riminbi (Yuan) dealings.

It’s yuan for the money for Twiggy Forrest
Matt Chambers
From: The Australian
July 13, 2011 12:00AM



IN the terrace room of Perth’s Hyatt yesterday, Yao Yudong, deputy director-general of monetary policy at the People’s Bank of China, was waxing lyrical about the “win-win” of China-Australian co-operation and the potential for trading in China’s yuan.
It was a speech to the Chinese-backed Boao forum that was sprinkled with high praise for Fortescue Metals Group chief executive Andrew “Twiggy’ Forrest. Mr Yao went on to reveal Mr Forrest’s plan for pricing contracts in yuan and then turned to Mr Forrest, in the audience, and said: “Would you please say something, chairman?”
Mr Forrest, who will become Fortescue chairman next week, got up chuckling. “Thank you for the kind, generous and of course spontaneous invitation,” he said.
“And of course FMG’s commercial in-confidence transparency extends to all of you,” he told the laughing audience.
More…




Jim’s Mailbox

Dear Jim,

US Federal Reserve minutes today communicated the discussion of QE3 by members of the Fed open market committee at their most recent meeting. The investing public is starting to awaken to the reality that QE3 is a foregone conclusion. As you have so correctly stated, it will be QE to infinity.
It looks like it will be sooner than later for the next QE event. We expect it to be from both Europe and U.S.
The European banking meltdown is well on the way to a terrifying and financially devastating culmination, much like the crisis of 2008 in the US and Europe. This sovereign debt and banking crisis will lead to a dropping out of the Euro by Greece and others and a new QE program to purchase sovereign debt of the several countries which cannot and will not repay their debt at face value.
This will be a clear debt default. As is the custom, the Fed and ECB will provide liquidity to attempt to keep the European economies and banking system from a complete implosion.
If there was rationality and appropriate appreciation, you would be declared a savior of many investors for your early and consistent statement of the folly of governmental, banker and investor behaviors and for your accurate predictions of the ultimate outcomes.
Thank you for your wisdom and insight.
Monty Guild
www.GuildInvestment.com





A U.S. default would slam financial system: NYC mayor Bloomberg 

CIGA Eric

The US’s ongoing default began in 1971 when it could no longer settle its debts in constant dollar terms. As James Turk observes in his latest commentary,
Government spending has become an even bigger force in the economy than when the US was on a war-footing during World War II. Never before has government consumed so much of the private sector’s wealth creation.
Printing press is the only option without material reductions in big government at this stage of the game. Any attempt to cut off the socialistic money spigot will be met with social unrest. This is what the equity, silver, and gold bears do not understand.
Headline: A U.S. default would slam financial system: NYC mayor Bloomberg
New York City Mayor Michael Bloomberg on Tuesday said a U.S. default on its debt "would have a catastrophic effect on our financial system" and deal the still-mending city economy a "huge setback."
Bloomberg, a political independent who had flirted with a presidential run, said in a statement the federal government must avoid damaging the nation’s economy and its credibility around the world with a first-ever U.S. default.
Source: finance.yahoo.com
More…




Small Currency Denominations Will Soon Disappear 

CIGA Eric

What’s a real world consequence of QE(n)? Pennies, soon followed by nickels, dimes, etc. become a hassle. The answer plastic and smart phone electronic wallets, right? While both of those options take away the short-term inconvenience/pain, neither address the root of problem – currency devaluation driven excessive debt levels.
A few observations:
(1) Today 97.5% zinc pennies do not cost more than cent to make. They may look copper, but like many things in America, it’s mostly show for the cameras.
(2) The mint stopped producing 95% copper pennies in 1982.
(3) The effects of currency devaluation are everywhere to be seen, but rarely noticed.

Some Shops Do Away With Pennies
More…





James Turk: Something more important than the debt limit

 

 

Gene Arensberg: Silver not done for 2011?

 

 

In King World News interview, Turk reiterates case for explosive summer in metals

 

 

Bulletin: Ron Paul to focus on presidential campaign and will leave Congress next year

 

 

30 Reasons To Get Out Of Real Estate and Into REAL Assets.

 

 

Geithner says hard times to continue for many 

Feds Force State & Local Government Insolvency 

 

 

Greek Tragedy Goes Global




UK:  Chain Retailers Closing 20 Stores a Day 





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