Fed Releases New Economic Forecast, Sees Deteriorating Economy, Up To 8.2% Unemployment At Year End
In April, the Fed saw 2012 GDP between 2.4-2.9% and unemployment of 7.8%-8/0%. The just released updated forecasts table has these two critical for the election campaign data points at 1.9%-2.4% for GDP but unemployment declining to 8.0%-8.2%.
One thing is certain: whatever GDP and unemployment are at the end of
2012, they will not be whatever the perpetially inaccurate Fed
forecasts.
Let's Twist Again: Goldman's Take
Goldman, which as recently as Monday night was pushing what clients it has left into believing the Fed may launch something as gargantuan as a $50-75 billion Flow-based QE program, has already come out with its take of today's action. For informative purposes, here it is.
QE-Off, Reality-On But Merkel/Van Rompuy Save The Day (For Now)
UPDATE: ES at day's highs - alone in its exuberance relative to risk assets.
We watched, we dipped, and then we ripped.
Disappointment at no new QE drove Silver down first, then Oil and then
the rest of the risk basket tumbled notably. EURUSD dumped 60pips, ES
dropped 7-8pts to Monday's close, Treasury Yields dropped 6-7bps,
Commodities (Gold, Silver, Oil, Copper) all fell 1-2% (with Silver
worst). But then we ripped as Van Rompuy and Merkel started chatting
about some progress in Europe. This pulled EURUSD up to unch, Gold and
Silver retraced half of their spike down, stocks recovered all of their
drop and reached up to VWAP (rather conveniently) where selling volume
re-appeared. Notably, only Treasuries remained near their spike levels. As we post, the recovery spike back up in risk assets is now fading. Now
get your popcorn ready for Bernanke's presser. Finally, the issue with
the European stick save, where Gollum mentioned Eurobond lite again,
is that it is merely a regurgitation of news from Sunday, which Germany has already said Nein to: In The Case Of The World Vs Merkel, The Broke Prosecution Proposes Eurobonds Lite.
Fed Releases New Economic Forecast, Sees Deteriorating Economy, Up To 8.2% Unemployment At Year End
In April, the Fed saw 2012 GDP between 2.4-2.9% and unemployment of 7.8%-8/0%. The just released updated forecasts table has these two critical for the election campaign data points at 1.9%-2.4% for GDP but unemployment declining to 8.0%-8.2%.
One thing is certain: whatever GDP and unemployment are at the end of
2012, they will not be whatever the perpetially inaccurate Fed
forecasts.
Let's Twist Again: Goldman's Take
Goldman, which as recently as Monday night was pushing what clients it has left into believing the Fed may launch something as gargantuan as a $50-75 billion Flow-based QE program, has already come out with its take of today's action. For informative purposes, here it is.
Fed Extends Twist Through End Of 2012, Prepared To Take Further Action, Market Unhappy
As always, Goldman Corzined anyone who listened to its call that an epic QE is coming. Fed did the worst possible outcome for risk- merely extended Twist, just as the credit market predicted it would 3 weeks ago:- FED SAYS IT IS PREPARED TO TAKE FURTHER ACTION `AS APPROPRIATE
- FED TWIST EXTENSION TO SWAP $267 BLN OF TREASURIES BY END 2012
- FED TO SELL OR REDEEM `EQUAL AMOUNT' DEBT DUE 3 YEARS OR LESS
- FED TO BUY TREASURIES DUE IN 6 TO 30 YEARS AT `CURRENT PACE'
- FED SAYS EMPLOYMENT GROWTH `HAS SLOWED'
- FED SAYS INFLATION HAS DECLINED, REFLECTING OIL
- FED REITERATES ECONOMY `EXPANDING MODERATELY'
- LACKER DISSENTS FROM FOMC DECISION
And Now We Ramp On This Latest Non-News
This is just getting ridiculous:- MERKEL SAYS BOND PURCHASING BY BAILOUT FUND A POSSIBILITY
LCH Hikes Italian Bond Margins
And just like yesterday, when LCH hiked Spanish bond margins in the whole Guardian disinformation fiasco, so LCH tries to sneak one in today again, this time hiking margins on Italian bonds with a 2-15 year maturity.One Hour Later: Stop Hunt Over - Reality Reasserts
Whipsaws everywhere.
Gold and Silver soared back up to unchanged on the day and S&P 500
e-mini futures roared over 15pts higher off spike lows to take out the
stops at the high of the day-session. EURUSD also dipped and ripped
swiping aside everyone's stops (long and short). 60 minutes after the
announcement of disappointment but hope to come, it appears the
over-reaction to the knee-jerk reaction is being faded now as Stocks,
Gold, Treasury Yields, and EURUSD are all falling now. The realization
that Merkel's comments were simply fact and nothing new and the
stop-hunt is complete provides some food for thought for all those
buying this dip ahead of Bernanke's press conference. Beware now. Gold remains notably above its pre-FOMC levels as stocks have retraced to unch as have Treasuries and the USD.
from PigMine3:
from GeraldCelenteChannel:
by Sayer Ji, Activist Post
Monsanto-funded research has been proliferating as uncontrollably as their genetically modified (GM) plants, and the bugs increasingly resistant to them.Two studies have appeared in scientific journals in the past eight months, both funded by Monsanto, and both discrediting a Roundup herbicide-cancer link.[i] [ii]
The context within which these new studies are appearing is the growing body of experimental research indicating that the active ingredient in Roundup, glyphosate, along with the surfactants and related “inactive” ingredients found within glyphosate-based formulations, cause genetic damage associated with cancer initiation, and at levels far below those used agricultural applications and associated with real-world exposures.[iii] [iv] [v] [vi] [vii]
This has put manufacturers and proponents of glyphosate, as well as “Roundup Ready” GM plants in a vulnerable position.
Read More @ Activist Post
from Testosterone Pit.com:
During the French presidential election, it became clear that François
Hollande, if he were to win the presidency, would try to align other
Eurozone countries, particularly Italy and Spain, into a southern front
against German Chancellor Angela Merkel and her government—to fix the
problems of the Eurozone à la française. Among his ideas: pushing the
ECB to buy government bonds of troubled debt-sinner countries and
instituting eurobonds—or euro-bills, as he now calls them—that would
give any member access once again to cheap unlimited loans. Everyone
would benefit, except the German taxpayer, who’d have to foot the bill.
Both policies are despised in Germany where budgetary discipline is seen
as the solution to the debt crisis—rather than even more debt and
monetizing of that debt.
Now that he has won the election, he has set out on his pre-charted collision course with Germany. The war of words has already started. For the first time that I can remember, a French government is lobbing unvarnished and relentless verbal attacks across the Rhine.
Read More @ TestosteronePit.com
During the French presidential election, it became clear that François
Hollande, if he were to win the presidency, would try to align other
Eurozone countries, particularly Italy and Spain, into a southern front
against German Chancellor Angela Merkel and her government—to fix the
problems of the Eurozone à la française. Among his ideas: pushing the
ECB to buy government bonds of troubled debt-sinner countries and
instituting eurobonds—or euro-bills, as he now calls them—that would
give any member access once again to cheap unlimited loans. Everyone
would benefit, except the German taxpayer, who’d have to foot the bill.
Both policies are despised in Germany where budgetary discipline is seen
as the solution to the debt crisis—rather than even more debt and
monetizing of that debt.Now that he has won the election, he has set out on his pre-charted collision course with Germany. The war of words has already started. For the first time that I can remember, a French government is lobbing unvarnished and relentless verbal attacks across the Rhine.
Read More @ TestosteronePit.com
from TF Metals Report:
While we all wring our hands at gold being back under $1600, there may be reason to be joyous, instead.
Before we begin, please keep in mind that I have no idea what The Bernank and his minions will conclude his afternoon. How would I know? How would anyone outside of the Fed (and a few of their pals) know? So this is all guesswork, speculation and intuition.
Of course, we all can easily remember that virtually every time The Bernank has opened his mouth in 2012, the metals have been crushed. Regardless of what he says or doesn’t say, down go the metals. Therefore, what you’re seeing today is one of two things:
While we all wring our hands at gold being back under $1600, there may be reason to be joyous, instead.
Before we begin, please keep in mind that I have no idea what The Bernank and his minions will conclude his afternoon. How would I know? How would anyone outside of the Fed (and a few of their pals) know? So this is all guesswork, speculation and intuition.
Of course, we all can easily remember that virtually every time The Bernank has opened his mouth in 2012, the metals have been crushed. Regardless of what he says or doesn’t say, down go the metals. Therefore, what you’re seeing today is one of two things:
- The spec short algos are attempting to front-run The Bernank. They expect similar action today and are trying to sell ahead of the news. This is akin to the old equity dictum, “buy the rumor, sell the news”. Fundamentally, by selling before The Bernank, much of the selling “dry powder” gets exhausted. When the actual news hits, there are very few sellers left and, when you have less sellers than buyers, prices rise. Read More @ TF Metals Report.com
by Peter Cooper, Silver Seek:
When there is a crisis of confidence in a currency then it is the
precious metals that gain. Visit any city in Germany or Austria this
summer and there is a gold shop in a prominent location.
They have not quite replaced the banks yet. But the message is there for anybody with eyes to see. It is noticeable too that this is not just a phenomenon in the peripheral eurozone but in its teutonic heart.
Spanish interest rates
Then again you certainly are getting good rates on your money in Spain and Italy these days, let alone Greece. Spanish bond yields have passed the danger point of seven per cent.
This is what happens when debtors become scarred about not getting repaid. Interest rates go up. No matter than the ECB has set official rates at a record low.
Read More @ Silver Seek
When there is a crisis of confidence in a currency then it is the
precious metals that gain. Visit any city in Germany or Austria this
summer and there is a gold shop in a prominent location.They have not quite replaced the banks yet. But the message is there for anybody with eyes to see. It is noticeable too that this is not just a phenomenon in the peripheral eurozone but in its teutonic heart.
Spanish interest rates
Then again you certainly are getting good rates on your money in Spain and Italy these days, let alone Greece. Spanish bond yields have passed the danger point of seven per cent.
This is what happens when debtors become scarred about not getting repaid. Interest rates go up. No matter than the ECB has set official rates at a record low.
Read More @ Silver Seek
by J. D. Heyes, Natural News:
Greek citizens may have narrowly avoided an economic catastrophe
following a vote this week to remain with the euro, the fact that their
country is slipping further towards a financial abyss is becoming more
ingrained in their psyche.
On Sunday voters narrowly elected a center-right New Democracy Party to take the reins of power in a country that, besieged by debt and teetering on the brink of insolvency, is literally in chaos. For months now, Greece has only managed to exist, not thrive, as successive bailouts of its government by the European Central Bank (led mostly by German efforts and money) have kept Athens from tumbling headlong over an economic cliff that, frankly, its leaders should have seen coming years ago.
Even now the bailouts – once gratefully considered a lifeline – are now being panned by vast numbers of Greek leaders and citizens who abhor the fact that the money is flowing with so many strings attached. Mindful of Greece’s expensive social benefits packages for government workers and citizens alike, those who are forking over euros by the billions have only done so by insisting Athens accept some of the most restrictive austerity measures ever imposed on a government.
Read More @ NaturalNews.com
Dear Vivi,
Fed Extends Effort to Lower Rates as Job Growth Slows By BINYAMIN APPELBAUM
Published: June 20, 2012
WASHINGTON — The Federal Reserve announced Wednesday a modest increase in its efforts to reduce borrowing costs for businesses and consumers by extending its existing “Operation Twist” asset-purchase program through the end of the year.
The decision reflects growing concern that the economy once again is stumbling into the summer months after the false promise of a relatively strong winter. Fed officials also have indicated a desire to insure against looming risks to the recovery, including problems in Europe and the stalemate in domestic fiscal policy.
The Fed’s policy-making committee said in a statement that it expected the economy would continue to grow at a “moderate pace,” but it noted that “growth in employment has slowed in recent months,” even as inflation has declined.
The Fed said that it would buy about $267 billion in longer-term Treasury securities over the next six months, with money raised by selling some of its current holdings of short-term Treasuries, maintaining its portfolio at roughly the same size.
It is the first time since January that the Fed has intensified its efforts to revive economic growth, and the first time since September that the Fed has announced a new round of asset purchases. This is the fourth such program since 2008.
More…
Dear Jim,
In the article link in part 2 the FDIC has accepted the Basil III recommendation that Gold should be reclassified for use as collateral at 100% value.
Banks will buy more Gold now and watch some mining companies with respect
Shorts watch out, the squeeze is on the way
Regards,
CIGA Luis Ahlborn Sequeira
Click here to read the full FDIC article…
Jim Sinclair’s Commentary
Underpaid, underemployed and barely making ends meet CIGA Eric
What’s playing out in Europe will eventually unfold in America.
Headline: Underpaid, underemployed and barely making ends meet
Throughout the Great Recession and the not-so-great recovery, the most commonly discussed measure of misery has been unemployment. But many middle-class and working-class people who are fortunate enough to have work are struggling as well, which is why Sherry Woods, a 59-year-old van driver from Atlanta, found herself standing in line at a jobs fair this month, with her résumé tucked inside a Bible. She opened it occasionally to reread a favorite verse from Philippians: “And my God will meet all your needs according to the riches of his glory in Christ.” Ms. Woods’s current job has not been meeting her needs. When she began driving a passenger van last year, she earned $9 an hour and worked 40 hours a week. Then her wage was cut to $8 an hour, and her hours were drastically scaled back. Last month she earned just $233. So Ms. Woods, who said that she had been threatened with eviction for missing rent payments and had been postponing an appointment with the eye doctor because she lacks insurance, has been looking for another, better job. It has not been easy. “I’m looking for something else, anything else,” she said. “More hours. Better pay. Actual benefits.”
Source: msnbc.msn.com
More…
Dear Jim,
NHS doctors are prematurely ending the lives of thousands of elderly hospital patients because they are difficult to manage or to free up beds, a senior consultant claimed yesterday.
CIGA Ramon
Dear Ramon,
Top doctor’s chilling claim: The NHS kills off 130,000 elderly patients every year By Steve Doughty
PUBLISHED: 23:08 GMT, 19 June 2012 | UPDATED: 14:14 GMT, 20 June 2012
NHS doctors are prematurely ending the lives of thousands of elderly hospital patients because they are difficult to manage or to free up beds, a senior consultant claimed yesterday.
Professor Patrick Pullicino said doctors had turned the use of a controversial ‘death pathway’ into the equivalent of euthanasia of the elderly.
He claimed there was often a lack of clear evidence for initiating the Liverpool Care Pathway, a method of looking after terminally ill patients that is used in hospitals across the country.
It is designed to come into force when doctors believe it is impossible for a patient to recover and death is imminent.
More…
Jim Sinclair’s Commentary
US behind the Iran nuclear ‘crisis’ Updated: 2012-06-20 08:06
By Ma Xiaolin ( China Daily)
No wonder the new round of talks in Moscow on the Iranian nuclear issue didn’t achieve any concrete progress, frankly speaking, no one is confident of solving a matter concerning Iran’s core interests through the talks. Especially as the United States has just heightened tensions by issuing new trade sanctions that include China and Singapore.
Actually, the Iranian nuclear issue is not only a matter of nuclear proliferation, it also reflects the lack of strategic mutual trust between the US and Iran. It is the US that has pushed Iran to seek to become a nuclear state, also it is the US has sensationalized Iran’s nuclear program as a global issue.
In 1957, in order to compete with the former Soviet Union in the Middle East, the United States and Iran signed a civil nuclear cooperation agreement as part of the US Atoms for Peace program. In 1963, Iran signed the Limited Test Ban Treaty and in 1968 the Nuclear Non-Proliferation Treaty.
But ties between the US and Iran soured after the Islamic revolution in 1979 and Iran turned to the USSR for help.
In 2003, one year after the Iranian nuclear program became news headlines worldwide, the Iranian government signed the protocol allowing snap inspections of nuclear facilities by the International Atomic Energy Agency.
More…
Jim Sinclair’s Commentary
G20 summit: Leaders alarmed over eurozone crisis 19 June 2012 Last updated at 05:10 ET
World leaders meeting at a G20 summit in Mexico have urged Europe to take all necessary measures to overcome the eurozone debt crisis.
They voiced unease over what one top official described as "the single biggest risk for the world economy".
But European Commission President Jose Manuel Barroso said "the challenges are not only European, they are global".
Sunday’s victory of a pro-bailout party in the Greek election did not give stock markets the expected boost.
Antonis Samaras, the leader of the New Democracy party, which narrowly won the poll, is holding urgent talks to form a coalition with the socialist Pasok party and possibly the smaller Democratic Left party.
More…
Jim Sinclair’s Commentary
Debt crisis: Spain and Italy to be bailed out in £600bn deal
European leaders are poised to announce a £600 billion deal to bail out Spain and Italy, it emerged at the G20 summit on Tuesday night. By Robert Winnett, Political Editor in Los Cabos, Mexico
9:27PM BST 19 Jun 2012
Two rescue funds are to be used to buy the debts of the troubled economies, the cost of which have reached record highs in recent weeks.
It is hoped that the move, which represents a substantial shift in policy for Germany’s chancellor, Angela Merkel, will send a strong signal to financial markets that Europe’s biggest economy is finally prepared to back its weaker neighbours.
Mrs Merkel and other European leaders have come under intense pressure at this week’s G20 summit to take radical action to stem the growing euro crisis which has pushed up the cost of Spanish bonds to unsustainable levels.
The communiqué issued at the end of the G20 summit, which finished in Mexico last night, said that European leaders had agreed to take action to bring down borrowing rates.
Under the proposed deal, two European rescue funds – the £400 billion (€500 billion) European Stability Mechanism (ESM) and the £200 billion (€250 billion) European Financial Stability Facility (EFSF) – will buy bonds issued by European countries.
More…
Jim Sinclair’s Commentary
Prepare for Lehmans re-run, Bank official warns
Banks and traders must prepare for a devastating market seizure as governments grapple with the escalating economic crisis in Europe, a Bank of England policymaker has warned. By Philip Aldrick, Economics Editor
9:26AM BST 20 Jun 2012
Cheap and ready access to the liquid assets that oil the financial markets are under threat from both state-imposed capital controls and flagging confidence in the euro, Robert Jenkins, a member of the Bank’s Financial Policy Committee, told the Global Alternative Investment Management conference in Monaco.
Without easy access to liquidity, markets could seize in a re-run of the credit crunch after the collapse of Lehman Brothers, he warned.
“Those of you who traded asset backed securities in 2008 can testify to the speed with which liquidity can disappear,” he said. “Yet despite these examples, many continue to assume that … ‘liquidity’ is free and will be freely available.
“Short-selling bans in Europe and bond purchase penalties in Brazil are a foretaste of the future. I recommend that you send your best and your brightest to the library to research state intervention in the post war period. It could come in handy. For like clean air and water, market liquidity is no longer limitless and no longer free.”
His comments came just minutes before the Bank launched its first £5bn emergency liquidity auction under the arrangements unveiled last week to protect Britain’s lenders from a crunch. At least £60bn will be made available to Britain’s banks over the next 12 months.
More…
Greek citizens may have narrowly avoided an economic catastrophe
following a vote this week to remain with the euro, the fact that their
country is slipping further towards a financial abyss is becoming more
ingrained in their psyche.On Sunday voters narrowly elected a center-right New Democracy Party to take the reins of power in a country that, besieged by debt and teetering on the brink of insolvency, is literally in chaos. For months now, Greece has only managed to exist, not thrive, as successive bailouts of its government by the European Central Bank (led mostly by German efforts and money) have kept Athens from tumbling headlong over an economic cliff that, frankly, its leaders should have seen coming years ago.
Even now the bailouts – once gratefully considered a lifeline – are now being panned by vast numbers of Greek leaders and citizens who abhor the fact that the money is flowing with so many strings attached. Mindful of Greece’s expensive social benefits packages for government workers and citizens alike, those who are forking over euros by the billions have only done so by insisting Athens accept some of the most restrictive austerity measures ever imposed on a government.
Read More @ NaturalNews.com
Dear Vivi,
These are very academic proposals. Nothing there can do what QE can and will.
The longer the Fed waits, the bigger the QE to infinity program will be.
The USA economy is getting ready to fall off a cliff.
Jim
The QE debate is pretty nuanced but generally speaking equities have not been sensitive to the differences. There are basically 4 large-scale asset purchases program alternatives, really only one should be bullish gold/commodities and negative for the dollar at least from an intermediate perspective.
Here they are in probability ranked order.
1) Extend the current program – sell more notes maturing in less than 3 years – the balance sheet doesn’t expand (increase in quantity supplied of dollars thereby theoretically lowering the equilibrium price) and while it shortens the residual market duration (lengthens the SOMA portfolio) this should have limited effect on the portfolio balance channel meaning no real impact on equities particularly given that they have rallied into the event. This is Dean’s call.
2) New Twist program selling the belly of the curve – as Dean pointed out this risks increasing rates in the part of the curve closest to the duration of consumer loans like autos – perhaps a larger portfolio balance effect but the balance sheet doesn’t expand so little or no impact on the dollar
3) Sterilized large-scale asset purchases – again no balance sheet effect assuming they can actually drain enough reserves from the system to offset the purchases – presumably a large number of the purchases would be MBS which should make the portfolio balance effect slightly greater giving risky assets like equities a larger boost but again no second order dollar/commodity/gold effect.
4) Unsterilized large-scale asset purchases – despite some of the street calling for this financial conditions in the US have not tightened nearly as much as in 2010 or 2011 and the labor market slowdown debate (payback or slowing trend) is not yet settled – additionally there are serious political implications to doing this that could threatened Fed independence. That last statement might be controversial but the Fed is a political institution and most insiders admit the hurdle goes up in election years.
The first option is most likely and is likely to be met with a fairly immediate negative reaction. 2 and 3 might get a slightly more positive reaction but without the growth outlook bottoming the effect would be limited. They are not close to 4, the strike on that put is much lower. So, on balance the markets are way ahead of the Fed and are clearly set up for significant disappointment.
More…
Fed Extends Effort to Lower Rates as Job Growth Slows By BINYAMIN APPELBAUM
Published: June 20, 2012
WASHINGTON — The Federal Reserve announced Wednesday a modest increase in its efforts to reduce borrowing costs for businesses and consumers by extending its existing “Operation Twist” asset-purchase program through the end of the year.
The decision reflects growing concern that the economy once again is stumbling into the summer months after the false promise of a relatively strong winter. Fed officials also have indicated a desire to insure against looming risks to the recovery, including problems in Europe and the stalemate in domestic fiscal policy.
The Fed’s policy-making committee said in a statement that it expected the economy would continue to grow at a “moderate pace,” but it noted that “growth in employment has slowed in recent months,” even as inflation has declined.
The Fed said that it would buy about $267 billion in longer-term Treasury securities over the next six months, with money raised by selling some of its current holdings of short-term Treasuries, maintaining its portfolio at roughly the same size.
It is the first time since January that the Fed has intensified its efforts to revive economic growth, and the first time since September that the Fed has announced a new round of asset purchases. This is the fourth such program since 2008.
More…
Dear Jim,
In the article link in part 2 the FDIC has accepted the Basil III recommendation that Gold should be reclassified for use as collateral at 100% value.
Banks will buy more Gold now and watch some mining companies with respect
Shorts watch out, the squeeze is on the way
Regards,
CIGA Luis Ahlborn Sequeira
Click here to read the full FDIC article…
Jim Sinclair’s Commentary
This is as sure as day follows night.
Underpaid, underemployed and barely making ends meet CIGA Eric
What’s playing out in Europe will eventually unfold in America.
Headline: Underpaid, underemployed and barely making ends meet
Throughout the Great Recession and the not-so-great recovery, the most commonly discussed measure of misery has been unemployment. But many middle-class and working-class people who are fortunate enough to have work are struggling as well, which is why Sherry Woods, a 59-year-old van driver from Atlanta, found herself standing in line at a jobs fair this month, with her résumé tucked inside a Bible. She opened it occasionally to reread a favorite verse from Philippians: “And my God will meet all your needs according to the riches of his glory in Christ.” Ms. Woods’s current job has not been meeting her needs. When she began driving a passenger van last year, she earned $9 an hour and worked 40 hours a week. Then her wage was cut to $8 an hour, and her hours were drastically scaled back. Last month she earned just $233. So Ms. Woods, who said that she had been threatened with eviction for missing rent payments and had been postponing an appointment with the eye doctor because she lacks insurance, has been looking for another, better job. It has not been easy. “I’m looking for something else, anything else,” she said. “More hours. Better pay. Actual benefits.”
Source: msnbc.msn.com
More…
Dear Jim,
NHS doctors are prematurely ending the lives of thousands of elderly hospital patients because they are difficult to manage or to free up beds, a senior consultant claimed yesterday.
CIGA Ramon
Dear Ramon,
The fine print in the new health bill opens the doors wide to this
potential solution to Medicare and social Security in the USA.
It is dangerous to be a geezer in the Land of the Free.
Jim
Top doctor’s chilling claim: The NHS kills off 130,000 elderly patients every year By Steve Doughty
PUBLISHED: 23:08 GMT, 19 June 2012 | UPDATED: 14:14 GMT, 20 June 2012
NHS doctors are prematurely ending the lives of thousands of elderly hospital patients because they are difficult to manage or to free up beds, a senior consultant claimed yesterday.
Professor Patrick Pullicino said doctors had turned the use of a controversial ‘death pathway’ into the equivalent of euthanasia of the elderly.
He claimed there was often a lack of clear evidence for initiating the Liverpool Care Pathway, a method of looking after terminally ill patients that is used in hospitals across the country.
It is designed to come into force when doctors believe it is impossible for a patient to recover and death is imminent.
More…
Jim Sinclair’s Commentary
The view from the Great Wall of China.
You might as well see what the people in China are reading this morning.
US behind the Iran nuclear ‘crisis’ Updated: 2012-06-20 08:06
By Ma Xiaolin ( China Daily)
No wonder the new round of talks in Moscow on the Iranian nuclear issue didn’t achieve any concrete progress, frankly speaking, no one is confident of solving a matter concerning Iran’s core interests through the talks. Especially as the United States has just heightened tensions by issuing new trade sanctions that include China and Singapore.
Actually, the Iranian nuclear issue is not only a matter of nuclear proliferation, it also reflects the lack of strategic mutual trust between the US and Iran. It is the US that has pushed Iran to seek to become a nuclear state, also it is the US has sensationalized Iran’s nuclear program as a global issue.
In 1957, in order to compete with the former Soviet Union in the Middle East, the United States and Iran signed a civil nuclear cooperation agreement as part of the US Atoms for Peace program. In 1963, Iran signed the Limited Test Ban Treaty and in 1968 the Nuclear Non-Proliferation Treaty.
But ties between the US and Iran soured after the Islamic revolution in 1979 and Iran turned to the USSR for help.
In 2003, one year after the Iranian nuclear program became news headlines worldwide, the Iranian government signed the protocol allowing snap inspections of nuclear facilities by the International Atomic Energy Agency.
More…
Jim Sinclair’s Commentary
What he is saying is that the damn OTC derivatives manufactured
primarily by the major US banking organizations busted the world.
G20 summit: Leaders alarmed over eurozone crisis 19 June 2012 Last updated at 05:10 ET
World leaders meeting at a G20 summit in Mexico have urged Europe to take all necessary measures to overcome the eurozone debt crisis.
They voiced unease over what one top official described as "the single biggest risk for the world economy".
But European Commission President Jose Manuel Barroso said "the challenges are not only European, they are global".
Sunday’s victory of a pro-bailout party in the Greek election did not give stock markets the expected boost.
Antonis Samaras, the leader of the New Democracy party, which narrowly won the poll, is holding urgent talks to form a coalition with the socialist Pasok party and possibly the smaller Democratic Left party.
More…
Jim Sinclair’s Commentary
Whatever is required here and there will be provided.
Debt crisis: Spain and Italy to be bailed out in £600bn deal
European leaders are poised to announce a £600 billion deal to bail out Spain and Italy, it emerged at the G20 summit on Tuesday night. By Robert Winnett, Political Editor in Los Cabos, Mexico
9:27PM BST 19 Jun 2012
Two rescue funds are to be used to buy the debts of the troubled economies, the cost of which have reached record highs in recent weeks.
It is hoped that the move, which represents a substantial shift in policy for Germany’s chancellor, Angela Merkel, will send a strong signal to financial markets that Europe’s biggest economy is finally prepared to back its weaker neighbours.
Mrs Merkel and other European leaders have come under intense pressure at this week’s G20 summit to take radical action to stem the growing euro crisis which has pushed up the cost of Spanish bonds to unsustainable levels.
The communiqué issued at the end of the G20 summit, which finished in Mexico last night, said that European leaders had agreed to take action to bring down borrowing rates.
Under the proposed deal, two European rescue funds – the £400 billion (€500 billion) European Stability Mechanism (ESM) and the £200 billion (€250 billion) European Financial Stability Facility (EFSF) – will buy bonds issued by European countries.
More…
Jim Sinclair’s Commentary
This you can take to the bank.
Prepare for Lehmans re-run, Bank official warns
Banks and traders must prepare for a devastating market seizure as governments grapple with the escalating economic crisis in Europe, a Bank of England policymaker has warned. By Philip Aldrick, Economics Editor
9:26AM BST 20 Jun 2012
Cheap and ready access to the liquid assets that oil the financial markets are under threat from both state-imposed capital controls and flagging confidence in the euro, Robert Jenkins, a member of the Bank’s Financial Policy Committee, told the Global Alternative Investment Management conference in Monaco.
Without easy access to liquidity, markets could seize in a re-run of the credit crunch after the collapse of Lehman Brothers, he warned.
“Those of you who traded asset backed securities in 2008 can testify to the speed with which liquidity can disappear,” he said. “Yet despite these examples, many continue to assume that … ‘liquidity’ is free and will be freely available.
“Short-selling bans in Europe and bond purchase penalties in Brazil are a foretaste of the future. I recommend that you send your best and your brightest to the library to research state intervention in the post war period. It could come in handy. For like clean air and water, market liquidity is no longer limitless and no longer free.”
His comments came just minutes before the Bank launched its first £5bn emergency liquidity auction under the arrangements unveiled last week to protect Britain’s lenders from a crunch. At least £60bn will be made available to Britain’s banks over the next 12 months.
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Jim Sinclair’s Commentary
Arab Spring is going to explode in 2012. Spontaneous Democracy is going to be the biggest covert mistake the West ever made.
The second biggest is using the SWIFT system as an economic weapon.
Egyptians protest against "constitutional coup" Published June 19th, 2012 – 13:40 GMT
Tahrir Square in Cairo was preparing Tuesday, for a large demonstration against the "constitutional coup" carried out by the military council, which have been granted extensive powers allowing it to remain in power whatever the outcome of the presidential election.
The two rivals in the vote, which ended Sunday, i.e. the Muslim Brotherhoods leader Mohammed Morsi and former Prime Minister Ahmad Shafiq, each claim victory. Official results are expected on Thursday.
Mohamed Morsi on Monday claimed victory in the presidential election on the basis of initial results which gave him 52% of the vote. His campaign managers reiterated Tuesday that he had made the score after a count of all the ballots.
But Ahmad Shafiq’s camp strongly protested against this claim ensuring that the retired general was leading in preliminary results. Supporters of Ahmad Shafiq accused the Islamists of trying to "steal" the victory by publishing "false figures".
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Jim Sinclair’s Commentary
Here is a comment on the Banksters.
"A nation can survive its fools, and even the ambitious. But it cannot survive treason from within. An enemy at the gates is less formidable, for he is known and carries his banner openly. But the traitor moves amongst those within the gate freely, his sly whispers rustling through all the alleys, heard in the very halls of government itself.
For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist." –Marcus Tullius Cicero
Jim Sinclair’s Commentary
Truth spoken by:
America is Greece… On Steroids By Bob Bauman JD, Offshore and Asset Protection Editor
Take a moment to consider this number: $16,084,425,792,391
At the last count, this is the level of the U.S. national debt. And if that number scares you… it should.
The fiscal and debt situation of the United States today is nothing less than Greece on steroids – with an added dose of political hallucinogens inducing insane denial.
It’s the same insanity that sent international markets up this week on the news that a paltry 30% of Greek voters supported a political party that advocates the country paying its bills and living within its means.
But let’s put this news in its horrific perspective:
In spite of the fact the Greek election results have allayed fears of the country’s imminent exit from the euro zone, swathes of political analysts still believe the move is a mere momentary respite, and that the European Union dream could yet turn to nightmare.
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Jim Sinclair’s Commentary
The US economy is not simply slowing down, it is teetering on renewed collapse.
Thank you manufacturers and distributors of OTC derivatives.
Job Openings in U.S. Decrease by Most in Almost Four Years By Michelle Jamrisko – Jun 19, 2012 8:04 AM MT
Job openings in the U.S. decreased in April by the most in almost four years, the latest sign that the labor market is cooling.
The number of open positions dropped by 325,000, the biggest decline since September 2008, to 3.42 million from 3.74 million the prior month, the Labor Department said today in Washington. Hiring slowed from the prior month and firings climbed.
The decrease in openings coincides with the slowdown in hiring seen in April and May, signaling employers are pulling back as the economy cools. The number of jobs available is down from an average 4.46 million in the two years before the recession began, showing the labor market continues to struggle.
“The most worrisome development is this big drop in hiring,” said Harm Bandholz, chief U.S. economist at UniCredit Group in New York. “If you have the outlook that things are getting little bit better, you eventually have to hire more people. But the fact that this is not happening — that’s worrisome.”
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Jim Sinclair’s Commentary
Currency induced cost push inflation is here and growing.
Subbarao Says India’s Inflation Rate Is Above Tolerance Level By Anoop Agrawal and Kartik Goyal on June 19, 2012
Indian inflation exceeds acceptable levels and restraining it may require sacrificing economic growth, central bank Governor Duvvuri Subbarao said.
“Headline inflation has come down, core inflation has come down to below 5 percent, but WPI inflation is still above our tolerance level at 7.5 percent,” Subbarao said in a speech in Mumbai yesterday, referring to India’s benchmark wholesale-price index. “Consumer-price inflation is running above 10 percent. That is quite disturbing.”
The Reserve Bank of India unexpectedly left interest rates unchanged on June 18 as price pressures narrow scope to bolster the weakest growth in almost a decade. Curbing the nation’s fiscal deficit and the success of the monsoon are among the keys to controlling inflation, Subbarao said.
“India is flirting with stagflation and needs a dose of supply-side reforms to improve medium-term growth potential,” said Prasanna Ananthasubramanian, Mumbai-based chief economist at ICICI Securities Primary Dealership Ltd. “However, the political realities are such that the chances of structural reforms and fiscal consolidation are uncertain.”
Price increases have been stoked in part by costlier imports following a near 20 percent slump in the rupee against the dollar in the past year. The currency tumbled as growth deteriorated and Europe’s debt crisis sapped demand for emerging-market assets.
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Jim Sinclair’s Commentary
In the Fall that will be the only option, however you are not coming
home with what is happening in the Middle East and the Iran/Syria
developing combo. Arab Spring was a disaster, yet to be fully
appreciated.
Don’t worry, war is the best business right now.
![clip_image002[3]](http://www.jsmineset.com/wp-content/uploads/2012/06/clip_image00231.jpg "clip_image002[3]")
Jim Sinclair’s Commentary
Today’s market was early this morning with the formation of unified
credit Euroland bonds; something that would be quite positive for the
euro.
As usual, the afternoon reports questioned that conclusion, at least for today.
The culture of Europe may be fine and mature, but it seems to be
slipping into dementia. They really believe they know exactly what they
are doing, at least in the mornings.
Jim Sinclair’s Commentary
This is very important to Tanzania where electrical power is concerned.
Tanzania gas reserves nearly triple Author: Reuters|
19 June 2012 16:19
DAR ES SALAAM – Tanzania has nearly tripled its estimate of recoverable natural gas reserves to up to 28.74 trillion cubic feet (tcf) from 10 trillion and plans to introduce new legislation later this year to regulate the gas industry.
The government raised its estimate after huge recent discoveries in the east African country’s deep-water offshore region.
Tanzania Energy and Minerals Minister Sospeter Muhongo said the recoverable gas reserves are estimated at 20.97 tcf offshore and 4.27-7.77 tcf onshore.
"Deep-water offshore oil and gas exploration is a very expensive undertaking… It is important to ensure this gas and oil exploration momentum continues, and the government will give a bigger push for companies to proceed," Muhongo said.
The minister said the latest gas reserve estimates take into account last week’s discovery by Norwegian oil firm Statoil and ExxonMobil of a big gas deposit off Tanzania at the Lavani well with an estimated 3 tcf of gas.
The discovery confirms East Africa’s status as one of the world’s fastest-growing gas hubs.
The U.S. Geological Survey estimating that 253 tcf may lie off Tanzania, Kenya and Mozambique, relatively close to Asia’s lucrative liquefied natural gas markets.
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Jim Sinclair’s Commentary
Nothing unusual about this. Also a comment on bullion markets versus paper markets.
Businessman stopped on Swiss border with £1.6m worth of gold in his car
![clip_image001[5]](http://www.jsmineset.com/wp-content/uploads/2012/06/clip_image00151.jpg "clip_image001[5]")
An Italian man attempting to cross the Swiss border has had 50 kg (110 lb) of gold seized by police.
The gold, worth around £1.6m (€2m), was found in a hidden compartment in his car. The businessman and his daughter, who was also in the car, have both been charged with smuggling.
The incident underlines a growing trend of Italians who are seeking to move wealth to Switzerland – funds that Italy is trying to have the Swiss authorities tax retroactively. Exports to Switzerland from the financially stricken country rose 35% year-on-year in February, with the Italian statistics office admitting it was mostly due to “sales of non-monetary gold”.
The amount of gold exported from Italy is jumping year on year, with 120 tonnes of the stuff moved to Switzerland in 2011 [a 65% rise on 2010]. As the Italian economic outlook continues to worsen, many have chosen to buy gold in order to retain wealth.
Italian Prime Minister Mario Monti has promised a crackdown on tax evasion as it was claimed that more than £96 billion [€119.6bn] in taxes were dodged Italy in 2009.
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Jim Sinclair’s Commentary
Adamsbryce Fine Art says give up your liberty for protection.
![clip_image002[1]](http://www.jsmineset.com/wp-content/uploads/2012/06/clip_image00214.jpg "clip_image002[1]")
Jim Sinclair’s Commentary
Since the Sheeplez feel giving up freedoms is a reasonable price to be
paid for some assumed protection from an invisible enemy, the solution
is simple.
When you are outdoors never look up.
Talk of drones patrolling US skies spawns anxiety By JOAN LOWY | Associated Press
WASHINGTON (AP) — The prospect that thousands of drones could be patrolling U.S. skies by the end of this decade is raising the specter of a Big Brother government that peers into backyards and bedrooms.
The worries began mostly on the political margins, but there are signs that ordinary people are starting to fret that unmanned aircraft could soon be circling overhead.
Jeff Landry, a freshman Republican congressman from Louisiana’s coastal bayou country, said constituents have stopped him while shopping at Walmart to talk about it.
"There is a distrust amongst the people who have come and discussed this issue with me about our government," Landry said. "It’s raising an alarm with the American public."
Another GOP freshman, Rep. Austin Scott, said he first learned of the issue when someone shouted out a question about drones at a Republican Party meeting in his Georgia congressional district two months ago.
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