"The Euro Is Finished"

While the move by the SNB to basically link its currency to the dying Euro was shocking and will send shockwaves throughout the global financial systems for months to come, in many ways it was inevitable. The central planners are still in control and they are getting increasingly desperate. Part of their desperation manifests itself in acts to prevent markets from sending out signals to investors and the general population. This is why Central Bankers print money and buy government bonds. This is why the ECB is buying worthless PIIGS debt. This is why the SNB decided to destroy its currency. After all, if they agree to destroy the value of the Franc at the same pace as the Euro then it will become less clear to the currency market just how quickly purchasing power is being destroyed. Of course, you can always tell in the commodities sector. What the Swiss did is unfathomably bullish for commodities, in particular energy, food and precious metals. Every rich person with a Swiss bank account in Swiss Francs will be scrambling to turn that into the one hard currency left: GOLD. That is what the Swiss said to us earlier this week. They told every investor on the planet “we don’t want to have a hard currency.” If you want a hard currency you have once option now. Gold. When people really figure this out it is going to be a mad scramble for physical metal the likes of which no one alive has ever seen.

In The News Today

September 8, 2011, at 11:42 am
by Jim Sinclair in the category In The News |  Print This Post |  Email This Post

Jim Sinclair’s Commentary

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- July Trade Deficit Suggests Possible Positive Contribution to Third-Quarter GDP
 
- Swiss Intervention Unlikely to Have Lasting Impact

www.ShadowStats.com






Jim Sinclair’s Commentary

It is truly the Dark Age. 

States Offer Banks Immunity From Mortgage Lawsuits In exchange for up to $25B payoff
By Kevin Spak
Posted Sep 6, 2011 8:36 AM CDT
(Newser) – State prosecutors are offering big banks an expensive Get Out of Lawsuits Free card. Prosecutors have offered a variety of banks caught up in the “robosigning” scandal immunity from some litigation in exchange for a total of $10 billion to $25 billion in penalties, the Financial Times reports. Some officials think the immunity being offered is far too broad; as written, it could potentially free the banks from lawsuits related to their securitization practices, or at least impede cases related to it.
Yet the banks, some of which have seen their stock prices plummet thanks to litigation fears, call the proposal a “non-starter.” They’ll meet with prosecutors again this week to negotiate further. The deal will include other issues as well, including new standards for governing home loans, which the sides are close on, and new compliance and enforcement standards, which they’re not. The banks involved include Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, and Ally Financial.

More…

Goldman's Take On Bernanke's Speech: "No Surprises... Market Expects Easing Action On September 21"

BOTTOM LINE: Fed Chairman Bernanke’s speech to the Economics Club of Minnesota today contains no surprises and will do nothing to dispel market expectations of further easing action at the September FOMC meeting.

Market Snapshot An Hour After Speech

Volume picked up significantly after Bernanke's speech was released, providing little (if any) new fodder for QE3 equity-market-hopers and once again pressing for Congress to act. ES has dropped around 1% led by financials.

Word Cloud Summary: Inflation - 16; Deflation - 0; Easing -2; Tightening - 0; Gold 0; Weak - 8; Strong - 4; Transitory - 1

Summary: inflation - 16; deflation - 0; easing -2; tightening - 0; gold 0; weak - 8; strong - 4; transitory - 1, and....
"the finances of the federal government will spiral out of control in coming decades, risking severe economic and financial damage" - 1

Bernanke Speaks In Jackson Hole Redux: "Fed Has Range Of Tools For More Stimulus"

The embargo has been lifted and here are the headlines, which are eeriely reminiscent of the Jackson Hole speech, courtesy of Bloomberg:

• BERNANKE: POLICY MAKERS SHOULDN'T DISREGARD ECONOMY'S FRAGILITY
• BERNANKE SAYS FED HAS `A RANGE OF TOOLS' FOR MORE STIMULUS
• BERNANKE SAYS SUBSTANTIAL FISCAL TIGHTENING COULD HURT RECOVERY
• BERNANKE SAYS FED PREPARED TO USE TOOLS `AS APPROPRIATE'
• BERNANKE SAYS INFLATION `EXPECTED TO MODERATE' IN COMING Q'S
• BERNANKE SAYS FED SEES `GREATER DOWNSIDE RISKS' TO OUTLOOK
• BERNANKE: POLICY MAKERS SHOULDN'T DISREGARD ECONOMY'S FRAGILITY
• BERNANKE: U.S. FINANCES COULD `SPIRAL OUT OF CONTROL'

"Margin Call" - The Trailer

Wall Street 2 was an epic disappointment, and massive failure due to a totally mangled mishmash of a script (and how could it not be after some rather prominent, literally, bloggers were asked to provide screenplay input) for a movie that was supposed to encapsulate the Great Financial Crash of 2008 (we won't even bring up that straight to premium Lifetime fluff piece by a liberal name-dropping OpEd columnist). Yet where the sequel to the quintessential Wall Street (hence the name) movie failed, a new one may take its place: Margin Call. We have not seen the advance screening yet, but it really can not be worse than the "other" GFC movie - at least here they can afford Bloomberg terminals.

Bankrupt Obama Stimulus Darling Raided By Feds

After breaking the story of Solyndra's shady taxpayer funded practices (which were not enough to stave off bankruptcy, and yet another confirmation that government stimulus in the form of subsidies is virtually always an epic failure), Bruce Krasting subsequently delved into the one entity that somehow had managed to get priority interest to subordinated government loans to the tune of $528 million in government funding: Argonaut Ventures, and specifically one George Kaiser who just happens to be a material fund-raiser for the president. And while it is not known yet whether the embedded improprieties in this peculiar relationship will end Obama's chances for reelection, things are starting to stink. Because as Bloomberg reports, as of a few hours ago, the company's headquarters was raided by the Feds. While at this point they are certainly looking for signs of criminal malfeasance by management, it won't be long before they put two and two together and decided to analyze the logic behind the funding, and why it is that an Obama-favored person will get his money out first while US taxpayers will likely suffer a total wash.

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