John Williams: The Devil’s Choice−Inflation or Deflation Beyond Control−Why hyperinflation is inevitable by 2014

from Financial Sense:

Jim welcomes economist John Williams, Executive Editor at Shadow Government Statistics. John discusses how we face a “devil’s choice” between inflation and deflation, and why he believes that hyperinflation is inevitable by 2014.
Click Here to Listen

Presenting The High Cost Of Armageddon Avoidance

One simple chart.

 

Jim Sinclair important interview with Ellis Martin/Real Debt to GDP for Portugal: 140%/Gasoline prices hit $4.00/Treasury bonds fall for 10th day (yields rise)

Harvey Organ at Harvey Organ's - The Daily Gold and Silver Report - 4 hours ago

Good evening Ladies and Gentlemen: Gold closed down today to the tune of $20.40 to $1646.70.  Silver the real victim of the raid, fell by $1.13 to $31.80. The markets around the world was in the red today which caused our bankers to initiate another raid.  We noticed yesterday that the gold/silver equity shares were weak which is generally a good sign that the bankers have orchestrated all the

No Record Profits For Old Assets: Jim Montier On Unsustainable Parabolic Margin Expansion For Dummies

It is widely known that US corporate profits recently hit an all time high. What is less known is that in Q4, profit margins for the first time rolled over by 27 bps, and double that if one excludes Apple. What is very much irrelevant, is that to Wall Street none of this matters, and the consensus (of which GMO's Jim Montier says "the Wall Street consensus has a pretty good record of being completely and utterly wrong") believes that Q4 will be largely ignored, and margins will continue soaring ever higher. Well, the same Montier, has a thing or two to say about this consensus surge in profits ("it is almost unthinkable that it will remain at current levels over the course of the next few years"). More importantly he looks at the Kalecki profits equation, and finds something rather peculiar. Namely Japan. Because while taking the profits equation at its face value would surely explain the 10.2% in corporate profits, of which a whopping 75% is thanks to America's burgeoning deficit, it would imply that Japanese corporate profitability, where there has been not only a long-running current account surplus, but zero household savings, and massive fiscal deficits, should be off the charts. Instead it is collapsing. Why? Montier has some ideas which may force Wall Street to renounce its bullish views, although probably won't. However, the implications of his conclusion are far more substantial, and if appreciated by corporate America (whose aging asset base is the problem), may ultimately result in a revitalization of the corporate asset base, however not before the dividend chasing frenzy pops in the latest and greatest bubble collapse.

The Simple Problems Of Too Much US Debt

In a succinct and chart-laden presentation, Professor Antony Davies, of Duquesne, offers a simple perspective on just how bad things are for the US (in terms of debt or obligations). Putting the interest cost in the context of war-spending, his analysis is interesting given the recent and dramatic rise in interest rates. Current interest payments, given the US Government's lowest ever 3% interest cost, are $440 billion, or three times the annual operating expenses of the Iraq and Afghanistan wars. While his discussion of a market-set interest rate is perhaps a little off-the-mark given the extent of QE programs and their reach-around prime-dealer duration-reducing effects, it is nevertheless true that the more money the government is spending on interest, the less money is available to provide services and his punchline on what happens should rates rise even modestly from here sums the real problem the US faces (even as a currency issuer as opposed to a currency user - given the inherent instability that making totalitarian use of the reserve status would incur).

Portugal's Tragic Cost Of "Remarkable" Troika Compliance

It was all ponies and unicorns as the EU-ECB-IMF 'Troika' mission found 'no sign of reform fatigue' in their report today, noting the 'remarkable' nature of the fiscal adjustment. Perhaps they should have asked someone outside of the halls of government as this tragic story from The Guardian notes the Portuguese death rate rising as health and welfare cuts from the 'remarkable' austerity package are biting at the people hard. During February, there were 20% more deaths than normal and the cost cuts are blamed as a visit to the ER has more than doubled. There is a general strike, as we noted earlier, on Thursday as the leader of the unions notes "They are driving the country towards disaster". While the IMF believes that Portuguese debt is sustainable, most practicing market participants who do not have a gun to their head see full well the unsustainable nature of the Portuguese debt load seeing the IMF's position as "wishful thinking". There is a growing tension as Irene Pimentel notes "I worry that democracy is at stake" and on the people's apparent stoicism for now, "I think it will explode eventually, it is impossible for people to remain this passive." At least Portuguese bonds are happy, and accept the culling of the Portuguese population at the altar of the euro, as a worthy supplication, worth at least 250 basis points.

Guest Post: Global Market Needs Canada's Crude

Canada's natural resources minister told delegates at the International Energy Forum in Kuwait that his country was on the cusp of becoming an "energy superpower." Canada ranks No. 6 in terms of global oil production, but much of its crude exists in the form of oil sands. European leaders are considering a measure that would classify oil sands as an environmental issue, prompting Canada to threaten to take the issue to the World Trade Organization. With the U.S. political system in a deadlock over Canadian crude, the Ottawa government is now working to convince the international community that the global market is in jeopardy if polices "discriminate against oil sands."

Commodities Tumble As Stocks Scramble

Turning on the screens this morning to red pixels was an odd feeling for anyone who has traded stocks this year and while the low was put in soon after the US open the slow and steady weak volume limp higher in equities (led by financials and too-hot-to-handle Apple) got ES (the e-mini S&P futures contract) back up to close at 1400 on the nose (-4pts on the day). Investment grade credit was generally an outperformer relative to stocks today (though AAA corporates were net sold perhaps on rotation back into Treasuries) though the roll in credit derivative markets hinders comparisons a little, however, high yield credit dwindled a little (on light flows) into the close. Commodities were the hardest hit of the day - dramatically underperforming the implied weakness of a modestly stronger USD. Silver, which recovered well off its lows of the day, was equal worst performer with Copper as China's slowdown story dominated. Interestingly Oil also fell as increased supply news hit pushing WTI under $106. Gold outperformed (though was lower on the day) and stands down only 0.6% on the week now (less than half the losses of the other metals/oil). Treasuries (as we already noted) broke their record losing streak with a modest 1-2bps compression in yields close to close (after being closed for the Japan session last night). A relatively large jump up in EURUSD near the US day session open was the biggest news in FX markets but that leaked away all day as the USD limped high off that low (helped by AUD and JPY weakness). VIX managed to rise once again.

Ron Paul Blasts Obama for Killing Americans

Presidential hopeful Ron Paul has publically attacked the Obama administration’s abolishment of due process in a new editorial, calling the move a turning point in American history.
Responding to Attorney General Eric Holder’s recent justification for the extrajudicial killings of three American citizens on foreign soil, Republican Party candidate Ron Paul has penned a scathing op-ed condemning the White House for circumventing the US Constitution. Earlier this month Holder spoke at Chicago’s Northwestern Law School to discuss last year’s execution of alleged terrorist Anwar al-Awlaki and two other US-born clerics in Yemen, a decision he says the White House still defends despite criticism from citizens and lawmakers alike.
Although both US President Barack Obama and the CIA signed off on the airstrike that killed the American citizens, Washington has been relatively quiet on the matter until Holder spoke earlier this month.
Read More @ infowars.com

Shocker: Illinois Voters Choose Mitt

[Ed. Note: Buckle up, it's going to be a bumpy New World Order.]
by Alexander Burns, Politico:

Mitt Romney is projected to win the Illinois primary Tuesday night, according to the Associated Press, padding his delegate lead and once again forcing his Republican opponents to find another moment to mount a guerrilla challenge to his campaign.
Romney led in every poll in the run-up to today’s vote. A Public Policy Polling survey released Sunday even showed him with a 15-point lead over Rick Santorum.
While Santorum campaigned in the state and spent money there, an adviser to his campaign acknowledged before the polls had even closed that the state was likely lost to Romney.
Read More @ Politico.com

Must Read...

Great Grandpa And The Silver Dollars -or- How The Government Steals You Blind

by NetRanger

…a short fable about value and wealth.
Many years ago there was a man named George Franklin (His friends called him “Frank”) who worked hard for his money. He was a machinist. He was highly skilled and highly sought after and, as such, was fairly well off. He and his wife had adequate savings, a nice home, some land, and several children.
One day, late in his career, he had an idea. Frank’s idea was to take an entire months wages and give it to each of his first two great grandsons. He discussed this with his wife, Tina, and they agreed. Their children were all grown and married with either young children or expecting. It would take a bit of extra saving but nothing the couple couldn’t handle. The house was paid for, the kids were raised, the car was old but seldom used.
Frank was paid a fairly handsome wage of $2 per day ($10 per week, $40 per month). It was high for a machinist but his skill and accomplishments rewarded him. So, over the next year, he and his wife set aside $80 for the two great grandsons.
Read More…

MUST WATCH: Election Fraud & the Media: This Hoax Affects Everyone

[Ed. Note: Here's a big picture look at how the mainstream media is actively involved in stealing the GOP elections.]
from mhfm1 :

53. The 2 Paths Of Life

 

POSTMAN: AYERS FAMILY PUT ‘FOREIGNER’ OBAMA THROUGH SCHOOL

by Jerome R. Corsi, WND.com:

CHICAGO – Did the parents of former Weather Underground terrorist Bill Ayers help finance Barack Obama’s Harvard education?
Did Ayers’ mother believe Obama was a foreign student?
And was the young Obama convinced at the time – long before he even entered politics – that he was going to become president of the United States?
A retired U.S. Postal Service carrier who delivered mail to Tom and Mary Ayers in a Chicago suburb in the late 1980s and early 1990s and claims to have met Obama in front of the Ayers home emphatically says yes to all three questions.
Read More @ WND.com

Sheriff Arpaio: A Media Conspiracy ‘Bigger than Watergate’ – My Obama Investigation Was Covered-Up

by Shepard Ambellas The Intel Hub:
PHOENIX — This could be one of the most detrimental issues the country is facing as the POTUS (President of the United States) can not even pass an e-verify check — Yet, Barrack H. Obama is in control of our nation’s nuclear arsenal.
Did the Sheriff bite off more than he can chew or does he have the courage to head off with the Puppet Masters that lurk behind the Vail?
We are talking about interfering with the globalists everlasting martial law measure that was implemented upon America in 2009 with help from the globalist controlled World Health Organization (WHO) and United Nations (UN) bodies.
In fact the POTUS himself passed an executive order on March 16, of 2012 basically initiating silent martial law.
This order came as a follow up to keep the nation in a constant state of martial law as the currently imposed extension to Pandemic Level 6 martial law expired earlier this month.
Read More @ theintelhub.com

Mike Maloney & Jim Rogers – Is Gold Money?

John Embry – Global Debt Saturation Ensures Much Higher Gold & Silver Prices

 

In The News Today

March 20, 2012, at 2:19 pm
by Jim Sinclair 

Jim Sinclair’s Commentary

The news you do not get on MSM.

Click here to watch the video…







Jim Sinclair’s Commentary

Here is the crisis that hides in plain view. It is the newest way to MOPE disasters.

 

Jim Sinclair’s Commentary

QE to infinity is assured.

Housing starts drop in February, but building permits rise By Derek Kravitz, Associated Press
By Tony Dejak, AP
Janez Bratrovic frames a home in Pepper Pike, Ohio in November in this file photo.
The Commerce Department says builders broke ground at a seasonally adjusted annual rate of 698,000 homes last month. That’s down 1.1% from January but up almost 35% from a year earlier.
And the government revised up its figures for January. While building permits, a gauge of future construction, jumped 5.1% last month to the highest level in more than a year.
Construction of single-family homes, which makes up roughly 70% of housing starts, dipped in February to a 457,000 annual rate after rising four straight months to an 18-month high. A jump in volatile apartment construction offset the decline.
It can take 12 months for a builder to obtain a permit and build a single-family home.
More…

 

 

Jim’s Mailbox

March 20, 2012, at 1:42 pm
by Jim Sinclair 

Jim Sinclair’s Commentary

I do not agree with the rampant bearishness that has infected the community. This period will be looked back on as just more noise and drama.

The US dollar is in harm’s way. QE will go to infinity. Gold will reach $2111.

The economic recovery is more in the minds of MOPE than actually taking place.

Who or what will drive the US economy? Car sales which are due entirely to subprime give away lending? Increased employment which is a statistical aberration due to no winter in 2011? Housing starts reported as good, but under estimates not mentioned?

Jim Sinclair

Jim,
We’re getting closer…
CIGA Stefaan






Jim,
This is economic warfare at its best.
Regards,
CIGA Christopher

“It also establishes an early precedent that puts pressure on South Korea, India, China, Turkey, South Africa and other major buyers of Iranian oil to also comply with US law.”

U.S. Exempts 11 Nations From Iran Oil Sanctions on Banking By Indira A.R. Lakshmanan – Mar 20, 2012 3:47 PM GMT-0300
The Obama administration is granting Japan and 10 European Union nations exemptions from new U.S. sanctions that will hit financial institutions in nations that don’t reduce their Iranian oil purchases by June 28, Secretary of State Hillary Clinton said.
The decision reflects that the countries have already “significantly reduced” their crude oil imports from Iran this year, Clinton said today in an e-mailed statement. Under a U.S. law enacted Dec. 31, the president must cut off access to the U.S. financial system for any foreign bank that conducts oil transactions with Iran’s central bank unless its country receives an exemption for reducing Iranian oil imports.
The countries exempted today are Belgium, the Czech Republic, France, Germany, Greece, Italy, Japan, the Netherlands, Poland, Spain, and the United Kingdom.
“The actions taken by these countries were not easy,” Clinton said. “They had to rethink their energy needs at a critical time for the world economy and quickly begin to find alternatives to Iranian oil, which many had been reliant on for their energy needs.”
More…

 

 

Today’s Ellis Martin Report Interview

March 20, 2012, at 12:40 pm
by Jim Sinclair 

My Dear Friends

The key to the gold market which is recognized by the very few is the subject of the Ellis Martin interview on jsmineset.com today.

You might not be overly interested as the sentiment in gold today is less than enthusiastic. As always, this is the condition of the market participants just when it should be the opposite.

There is a reason why cash gold buyers are willing to go against prevailing sentiment and buy these reactions.

There are strong reasons why the gold price is putting up a stronger
battle than your charts call for.

There are reasons why certain gold shares are performing well regardless of the HUI chart.

There is a strong unseen reason why the US dollar rallies falter in the USDX .80-.82.

Please consider listening to this interview. I did this for you.

Respectfully,
Jim

 

 

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