No news on USA debt Ceiling/Greece debt lowered to CA1 (basically bust)

Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 35 minutes ago

Good evening Ladies and Gentlemen: The price of gold and silver skyrocketed northbound Sunday night as word spread that there was no deal on the debt ceiling debacle.  The banking cartel showed up for work today trying to keep the price of gold and silver in check.  Also remember that there are over 20,000 calls on gold at the 1600 dollar level.  The bankers always attack on options expiry. The

Food Costs Rising as Coke, Chipotle Pass on Commodity Gains

Eric De Groot at Eric De Groot - 35 minutes ago

It's nothing that the CPI's statistical techniques (geometric smoothing, hedonics, or substitution) can't easily fix, right? Rising "foodstuffs" inflation is no transitory phenomenon. People are starting to get squeezed. CRBFoodstuffs And Year-over-Year (YOY) Change While many experts are screaming top, they fail to notice that foodstuffs have plenty of room to catch up with commodities as a... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 

 

 

 

 

 

In The News Today

July 25, 2011, at 4:32 pm
by Jim Sinclair in the category In The News |  Print This Post |  Email This Post

Jim Sinclair’s Commentary

This prediction is much too bullish.

No US home building rebound until 2014 – Fed paper CHICAGO, July 25 | Mon Jul 25, 2011 1:00pm EDT
(Reuters) – U.S. home building likely won’t return to normal levels until 2014, and then only if housing prices rebound and foreclosures drop sharply, research from the San Francisco Federal Reserve Bank showed.
Continued weakness in the housing market is dragging on the U.S. economy, which is losing ground under the weight of 9.2 percent unemployment and declining consumer confidence.
A report on Friday is expected to show the U.S. economy expanded at a 1.8 percent clip in the April-to-June period, below the first quarter’s tepid 1.9 percent rate.
Research released Monday by William Hedberg, a San Francisco Fed research associate, and John Krainer, a senior economist there, indicate the drag from housing is likely to continue for years.
"Our analysis suggests that even an unusually strong period of real house price appreciation would not, on its own, lift starts to long-run average levels," the researchers wrote in the regional Fed bank’s latest Economic Letter. "A significant easing of the drag on housing stemming from the inventory of foreclosed homes is also needed."
Foreclosures would need to drop by 50,000 homes per quarter starting in 2012, the researchers found, and home prices would need to stop falling by 2013 and then begin to rise, for housing starts to return to pre-2004 levels by 2014.
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Jim Sinclair’s Commentary

The endangered species in the Western financial world is retirees.

Rhode Island city asks retirees to cut their pensions July 21, 2011|By Julia Talanova, CNN
As cities across the United States struggle to keep their finances afloat, Central Falls, Rhode Island, is taking a novel approach to try to avoid bankruptcy.
The city is asking police and firefighter retirees to give up 50% of their pension.
On Tuesday, a state-appointed receiver, Judge Robert Flanders, met with constituents to discuss options that will prevent the city from filing for bankruptcy, but the choices seemed limited: either volunteer for the pension cut, or risk losing it all.
The city has a $5 million per year structural deficit, said Michael Trainor, a spokesman for Flanders.
"Going forward, it’s now at a point where a city is about to run out of cash," he added.
Central Falls, a city of 19,000 residents living in roughly a square mile, has historically had difficulty reducing its expenses because of a decline in population and the resulting smaller tax revenues, according to Trainor.
Each of the 141 city retirees will receive a voting ballot and a packet by the end of the week, showing how much of their pensions will be slashed if they agree to volunteer for the benefits cut.
With August set as the deadline for further decisions on the financial future of the city, Flanders hopes to find out residents’ decisions by the end of the month.
Those who were planning to retire soon are now worried about doing so, fearing that they may end up with nothing. Firefighters in the city do not receive Social Security benefits.
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Jim Sinclair’s Commentary

Today’s political nonsense.

Senate and House Split as Obama Is to Address Budget By CARL HULSE, JENNIFER STEINHAUER and JACKIE CALMES
Published: July 25, 2011
WASHINGTON – The Democratic Senate and Republican House put themselves on a legislative collision course Monday as they moved forward with significantly different plans on how to raise the debt limit and avert a possible federal default next week.
President Obama, continuing to make use of his White House bully pulpit, will address the nation on Monday night on the “stalemate over avoiding default and the best approach to cutting deficits,” Jay Carney, the press secretary, announced in a Twitter message late in the afternoon.
The president’s decision to intervene comes after House Republican leaders pushed for a vote Wednesday on a two-step plan that would allow the federal debt limit to immediately be raised by about $1 trillion and tie a second increase next year to the ability of a new joint Congressional committee to produce more deficit reduction.
But top Senate Democrats called the proposal a “non-starter” and said they would advance their own plan to reduce the deficit by $2.7 trillion and raise the debt ceiling until after next year’s elections, saying it met the conditions that Republicans had laid down during the ongoing debt fight.
“We’re about to go over a cliff here,” Senator Harry Reid, the Nevada Democrat who serves as majority leader, said Monday afternoon as he outlined his proposal.
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The Definitive Chart Collection Of America's Bipolar [Non] Recovery

Today the IMF released its complete Article IV Consultation report, focusing on US economic development and policies. While there are 70 pages or so of textual fluff (it comes from the IMF after all), where the report excels is in presenting the complete picture of the "bipolar recovery" in the United States, in about 50 or so charts, which is a recovery for some and an outright recession if not depression for most. Furthermore, the report corroborates that when it comes to the economy, the US "recovery" has been one of two stories 7 quarters following the business cycle trough: a contraction in virtually all key non-business segments, including real GDP components, fixed investments, and the business sector, and a flourishing renaissance for the business sector and for financial firms, profits and financial conditions. In other words, from the very beginning the whole purpose of the orchestrated recovery was one and one only: not to improve the general economic situation, but to pander to corporations and to the wealthiest. It is no wonder that rumors of social disobedience and discontent are getting ever louder: by now even the most average American has understood that the administration has betrayed them. However, we do not want to delve in the ethics of it all. Others will do that. Instead, here are all the charts that tell the story of America's recovery. Or, more specifically, lack thereof as the case may be and is.

Paul Ryan Throws Up All Over Reid $1 Trillion Budget Gimmick

Submitted by Tyler Durden on 07/25/2011 - 19:16 Earlier it was our turn to suffera series of subdural courtesy of the $1 trillion in "savings" from wars yet unfought as per Harry Reid's plan "proposal." Now, it is Paul Ryan's turn.

Guest Post: Bread, Circuses, Cake And Markets

The decline of the Roman Empire is captured by the simple concept of bread and circuses. Rather than focusing on the issues, the leaders tried to placate the masses.  The disdain in the simple phrase 'let them eat cake' so clearly brings to mind all the reasons for the French revolution. Rather than placating the masses, the aristocracy almost took pleasure in flaunting their wealth and privilege.  I am not convinced America has reached it's apex and is in decline, but more and more I believe that if we have peaked history will equate our decline with two simple words - "the market".

Netflix Plunges On Revenue Miss, Ugly Guidance, Deteriorating Fundamentals

At last check Netflix' stock was down about 10% following an earnings report that was about as ugly as they get. While the company beat Q2EPS consensus of $1.12, coming with a number of $1.26, it missed revenue estimates of $790.5 MM at $789 MM. What's worse, it forecasted Q3 EPS of $0.72-$1.07, far below the $1.23 consensus, while it sees revenues of $780-$805 MM on consensus of $842 MM. And digging deeper, the rot was pervasive in virtually every line item. But don't worry: according to NFLX, it is now bearing the Pirate Bay scourge. Not. But at least Jim Cramer loves it.