In The News Today
by Jim Sinclair
Lawmakers Concede Budget Talks Are Close to Failure
Conceding that talks on a grand budget deal are near failure, Congressional leaders on Sunday pointed fingers at each other as they tried to deflect blame for their inability to figure out a way to lower the federal deficit without having to rely on automated cuts.
The testy exchanges — which dominated the Sunday talk shows — made clear that leaders in both parties now see the so-called “sequester,” a term meaning an automatic spending cut, as the most likely solution to reduce the federal deficit by $1.2 trillion over 10 years, instead of the negotiated package of spending reductions and tax increases they have been unable to achieve over the last 10 weeks.
Democrats blamed the Republicans for their unwillingness to walk away from a no-new-taxes pact they signed at the request of a conservative, anti-tax group, arguing that the American public realizes that no grand deal could be reached without a combination of spending cuts and new tax revenues.
Jim Sinclair’s Commentary
QE to infinity is impossible to avoid in the entire Western financial system.
Global Collapse a Done Deal, says Jim Rogers
By Dominique de Kevelioc de Bailleul
As Rogers moved from India’s Economic Times, to Fox Business and over to his latest stop, CNBC, his message to investors is: If you think 2008 was bad, 2012 will be worse.
“We’re certainly going to have more crises coming out of Europe and America; the world is in trouble,” Rogers told CNBC. He said everyone has spent beyond their means, public and private, “and it’s all coming home to roost.”
Rogers’ more dire message recently speaks to the consensus of other thoughtful and unencumbered minds of economics and finance this week, especially today, as Bloomberg featured gold standard advocates Jim Grant and Jim Rickards during a lengthy joint discussion with the two men on Money Moves.
Rogers doesn’t refer to gold standards much as Grant and Rickards have lately, but he has discussed his fear of central bankers and their printing presses running wild in response to the crisis. Today, he believes the global financial system cannot weather a multiple of more debt added to the already highly leveraged central banks balance sheets prior to 2008.