Jim Sinclair say:
Putin and his former KGB team do not play for peanuts. They know exactly what they are doing and where gold is going. They are increasing their position by various means in both precious and industrial metals.
Russia gold, forex reserves up 50% in 10M06, to $272.5 bln - CBR
MOSCOW, November 7 (RIA Novosti) - Russia's gold and foreign exchange reserves rose 49.55% in the first 10 months of 2006, to 272.54 billion, the Central Bank of Russia said Tuesday.
The CBR said that as of November 1, foreign exchange reserves stood at $187.6 billion, gold reserves at $7.58 billion, and other reserves at $77.1 billion.
The CBR said in October that reserves were up 2.38%, from $266.2 at the beginning of the month.
The CBR said earlier the continued strong rise in Russia's gold and foreign exchange reserves is due to the high world prices for Russia's main commodity exports, as well as the country's macroeconomic situation and policy.
More @ en.rian.ru
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Jim Sinclair’s Commentary
The Formula is the engine of the next phase of the generational gold bull market. It is the key fundamental factor now coming into play. Please read the following article and factor it into the Formula.
Why higher wages should worry you
By Jim Jubak
"Corporate profits near peak of cycle The Commerce Department breaks down national income generated by the U.S. economy into slices. There's one for corporate profits, for example, and another for wages and salaries. Those slices of the national income pie vary in size over time."
Wage inflation is back. And it couldn't be showing up at a worse time.
Thanks to wage inflation, the slice of the national income pie going to corporate profits, which has been growing steadily since 2001, looks like it has peaked. And it has peaked at a time when economic growth is slowing. Together, these two trends could mean an end to the string of 18 consecutive quarters of double-digit earnings growth for the S&P 500 Index ($INX, news, msgs) that has underpinned the stock market's recovery from the crash of 2000.
And there's no quick fix available to the policymakers at the Federal Reserve who set interest rates.
Count this as just one more uncertainty, one more thing to worry about -- along with interest rates, economic growth, the dollar, oil prices and inflation -- in 2007.
More @ articles.moneycentral.msn.com
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Jim Sinclair’s Commentary
If there is an Armageddon out their this is one of the various weapons of financial mass destruction acting as accidents waiting to happen.
Investors regroup as swaps panic hits
Paul J Davies, Gillian Tett, London November 07, 2006
INVESTMENT banks and hedge funds are being forced to rapidly adjust their trading strategies amid a wave of "panic selling" reported in the US and European credit derivatives market last week.This heavy selling has driven the cost of insuring debt against default in the market for credit default swaps to record low levels - signalling either that investors are extraordinarily optimistic about the outlook for corporate debt, or that prices are so distorted that they are no longer being paid for the risks they are taking on.
Credit default swaps make up the majority of the rapidly expanding $US26,000 billion ($33,000 billion) credit derivatives market.
They offer a kind of insurance against non-payment of corporate debt with the buyer of protection paying an annual premium that is a percentage of the amount of debt covered.
When the price of CDS instruments drops, this leads to mark-to-market losses for those holding the instrument and who have bought protection because they are paying a premium that is greater than the market rate.
More @ theaustralian.news.com.au
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Day after day the Fed Bank Presidents give their opinions - up one day, down the next. Business profits in key arenas are headed lower and there is no question about that. These guys are flexing their public muscle but in time will wish they had not.
Fed's Pianalto says more rate action may be needed
Mon Nov 6, 2006 6:31 PM ET
PITTSBURGH, Nov 6 (Reuters) - Cleveland Federal Reserve President Sandra Pianalto warned on Monday that another hike in U.S. interest rates might be warranted if inflation failed to fall fast enough to satisfy the central bank.
"I expect some slowing in the rate of inflation as recent energy price changes and the effects of monetary policy actions work through the economy," she said in a speech prepared for an awards ceremony hosted by the Pittsburgh Business Times. A copy of her remarks were made available to the media before delivery.
"But some risks remain that inflation will not recede into a range consistent with the FOMC's (Federal Open Market Committee) price stability objective. In that event, it is possible that some additional monetary policy restraint would be required," she said.
Pianalto is a voting member of the Fed's policy-setting committee this year.
More @ today.reuters.com
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Jim Sinclair’s Commentary
Something about this feels sinful. Our society rewards paper shufflers, derivative traders and the money changers of Solomon's Temple.
Bonuses at Wall Street Big Five Surge to $36 Billion
By Christine Harper
Nov. 6 (Bloomberg) -- Never in the history of Wall Street have so many earned so much in so little time.
Goldman Sachs Group Inc., Morgan Stanley, Merrill Lynch & Co., Lehman Brothers Holdings Inc. and Bear Stearns Cos. are about to reward their 173,000 employees with $36 billion of bonuses. That's a 30 percent increase from last year's record, and it doesn't include the billions more that will be paid by Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co., the three largest U.S. banks, as well as the hundreds of hedge funds and private-equity firms that constitute the financial industry.
More @ bloomberg.com
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Jim Sinclair’s Commentary
Here is a sign of slower business activity to come. Factor this into the Formula.
Consumer Credit in U.S. Unexpectedly Falls $1.2 Bln (Update1)
By Bob Willis
Nov. 7 (Bloomberg) -- Consumer borrowing in the U.S. unexpectedly declined for the first time in six months in September as Americans took out fewer car loans and spent less at the gasoline pump.
Consumer credit, or non-mortgage loans to individuals, slid $1.2 billion, the most since 1992, to $2.37 trillion, the Federal Reserve said today in Washington. Credit declined at a 0.6 percent annual rate. In August, credit increased at a 4.7 percent rate that was higher than originally reported.
Americans racked up less credit card debt at filling stations in September as the price of gasoline fell. The decline in fuel costs is also helping consumers weather a housing slump that helped reduce the pace of economic growth to the lowest in three years last quarter.
``The use of credit cards to pay for gasoline purchases has probably gone down substantially since gas prices dropped,'' said Ellen Zentner, an economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. ``Credit use remains historically low.''
More @ bloomberg.com |
