Things That Make You Go Hmmm - Such As The Global Central Planning Groundhog Day

Since 2008 and the bursting of the great credit bubble, central banks have been printing money hand over fist in a desperate attempt to generate the inflation they feel is necessary to drag the world out of a perceived deflationary spiral. The chart (left) shows the growth in ‘assets’ of G-3 Central Banks over the last 17 months alone, during which time, they have increased by 32%. To date, the level of the various benchmark CPI indicators would suggest there have been no deleterious effects, but just because the results aren’t showing up where those in charge of measuring them are LOOKING, doesn’t  mean they aren’t showing up at all. Look at food prices across Asia. Look at housing prices in Hong Kong. Look at fuel prices in Nigeria. Look at heating costs in the UK. Look at gold.

6 Hour Greek Meeting Ends With No Agreement, Troika Demands Answer By 11am Tomorrow, EURUSD Drifts Lower

The Greek endgame appears to be approaching... or not. After a "marathon" (in Greek terms) session between the Greek coalition cabinet members ended with no definitive agreement, and in fact LAOS president said that more austerity would "contribute to a recession that the country can not afford, and a revolution of misery which will then burn down Europe", while New Democracy's Samaras stated he would "not permit any more austerity", even as Papademos on the other line apparently said that the leaders have agreed on 2012 spending cuts of 1.5% of GDP, the Troika seems to have had enough of being Greek'd around, and demands an answer by 11 am tomorrow. Supposedly, "or else" no more cash. Then again, we have heard all of this before. In fact, the Troika talks are continuing right now as European representatives entered the Greek PM office, following a late night meeting with the IIF. That said, the market is once again quite nonchalant about all of this, with the EURUSD trading down a modest 50 pips to 1.3107 having touched just under 1.3080 earlier. Bottom line: it is likely that nothing will happen tonight.

Excess Ballots Were Counted In Clark County, Nevada

Hedge Funds Start 2012 At A Blistering Pace

Not too surprisingly, following an atrocious year for hedge funds in 2011, 2012 has opened with a bang, as virtually all of the brand name funds are green for the year, while the best performers are all the European focused funds which last year crashed and burned. Call it sector rotation into the most hated names (something we took advantage of two weeks ago with our bizarro market strategies), or just call it a dead cat bounce, one can see why nobody wants the party to end: just a few more months like January, and everyone will be above the high water mark, valuations be damned.

Ron Paul: When the People Change, Romney and Gingrich Will Change

Is Obama's Peace Prize About To Be Confiscated? Nobel Peace Prize Jury Under Investigation

The announcement of Obama's recognition by the Nobel Peace Prize committee in 2009 seemed, to many, more like an 'Onion-worthy' headline than reality but now, as The Associated Press reports, it seems the officials face a formal inquiry over the selection criteria that could rescind the last three years' awards. The accusations at the root of the inquiry stem from persistent complaints by a Norwegian peace researcher that cites the original purpose of the prize was to diminish the role of military power in international relations, and if the Stockholm County Administrative Board, the overseer of such foundations, finds that the founder Alfred Noble's will is not being honored then (while unlikely) Obama (2009), Liu Xiaobo (2010), and last year's Liberians could face their awards suspended as 'champions of peace'. Fredrik Heffermehl, the inquiry's instigator, rhetorically asks when addressing the 2009 committee choice of Obama for "extraordinary efforts" to boost international diplomacy: "Do you see Obama as a promoter of abolishing the military as a tool of international affairs?" as he notes the 1895 will of Nobel to "work for fraternity between nations, for the abolition or reduction of standing armies and for the holding and promotion of peace congresses."

In The News Today

February 5, 2012, at 6:05 pm
by Jim Sinclair 

 

Ed note... Here's another of my favorite quotes...

"Ignorant men raise questions that wise men answered a thousand years ago." 

- Johann Wolfgang von Goethe

Jim’s Mailbox

February 5, 2012, at 6:02 pm
by Jim Sinclair 

Hi Jim,

I have always viewed "investment" accounts that entice savers through tax breaks and then out of fear of penalties not to withdraw, are assets of imprisonment and should be avoided. The longer one keeps wealth in the account of another the further away the wealth goes from the rightful owner. In this day and age if one gives their wealth to some other entity it has a very high chance of not returning. For the same reason individuals should take delivery of their stock certificates. In my opinion they should eat the penalties and get their wealth in their possession. I would hate to be a government employee right about now. The entitlements alone will require QE to infinity to keep the sheeplez from waking up. This entire mess just makes me sad. I try to lead by example, but it sure gets lonely as explaining the reality leads to avoidance.
CIGA Paul

 

 

In The News Today

February 4, 2012, at 4:49 pm
by Jim Sinclair 

Jim Sinclair’s Commentary

Employment statistics as taught by the two revered classical economists, Abbott and Costello. Courtesy of CIGA Lew
COSTELLO: I want to talk about the unemployment rate in America.
ABBOTT: Good Subject. Terrible Times. It’s 8.3%.
COSTELLO: That many people are out of work?
ABBOTT: No, that’s 16%.
COSTELLO: You just said 8.3%.
ABBOTT: 8.3% Unemployed.
COSTELLO: Right 8.3% out of work.
ABBOTT: No, that’s 16%.
COSTELLO: Okay, so it’s 16% unemployed.
ABBOTT: No, that’s 8.3%…
COSTELLO: WAIT A MINUTE. Is it 8.3% or 16%?
ABBOTT: 8.3% are unemployed. 16% are out of work.
COSTELLO: IF you are out of work you are unemployed.
ABBOTT: No, you can’t count the "Out of Work" as the unemployed. You have to look for work to be unemployed.
COSTELLO: BUT THEY ARE OUT OF WORK!!!
ABBOTT: No, you miss my point.
COSTELLO: What point?
ABBOTT: Someone who doesn’t look for work, can’t be counted with those who look for work. It wouldn’t be fair.
COSTELLO: To who?
ABBOTT: The unemployed.
COSTELLO: But they are ALL out of work.
ABBOTT: No, the unemployed are actively looking for work… Those who are out of work stopped looking.
They gave up and if you give up, you are no longer in the ranks of the unemployed.
COSTELLO: So if you’re off the unemployment rolls, that would count as less unemployment?
ABBOTT: Unemployment would go down. Absolutely!
COSTELLO: The unemployment just goes down because you don’t look for work?
ABBOTT: Absolutely it goes down. That’s how you get to 8.3%. Otherwise it would be 16%. You don’t want to read about 16% unemployment do ya?
COSTELLO: That would be frightening.
ABBOTT: Absolutely.
COSTELLO: Wait, I got a question for you. That means there are two ways to bring down the unemployment number?
ABBOTT: Two ways is correct.
COSTELLO: Unemployment can go down if someone gets a job?
ABBOTT: Correct.
COSTELLO: And unemployment can also go down if you stop looking for a job?
ABBOTT: Bingo.
COSTELLO: So there are two ways to bring unemployment down, and the easier of the two is to just stop looking for work.
ABBOTT: Now you’re thinking like an economist.
COSTELLO: I don’t even know what the hell I just said!

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