Jim,

The greatest monetary injection the world has ever seen receives "relax" admonishment to nervous bond investors.  The "don’t worry be happy crowd" never sees the downside, and only offers managed perceptions toward beer goggles expectations. Jim, I think it is time to shut down jsmineset.com because the 2009 countdown is clearly no longer necessary. What on the surface is excellent comedic reading will unfortunately turn into a tragedy for those without the independence to act contrary to the crowd.

CIGA Eric

Fed Douses Purchases Talk, Urges Investors to ‘Relax’ (Update1)

June 25 (Bloomberg) — Federal Reserve officials, encouraged by signs the recession is easing, doused speculation they will pump more money into the economy to hold down interest rates, while indicating they’re not ready to begin a retreat.

Fed policy makers voted yesterday to maintain the size and pace of their $1.75 trillion program to buy mortgage debt and Treasuries. The central bank said it sees a “gradual resumption of sustainable” growth even as “substantial” economic slack holds down inflation pressures.

The statement indicated policy makers need more time to assess the prospects for a recovery starting in the second half of the year before deciding to embark on any exit from their unprecedented credit programs. Complicating their task is an increase in Treasury yields, which yesterday’s message failed to stem: 10-year rates rose five basis points, the most in almost a week, and a further two basis points to 3.71 percent today.

More…

Eric,

That is a very ill chosen spin!

Jim

Jim,

Management of perception economics (MOPE) ends when you lose your job, or simply at two closes below .7200 on the USDX.

Challenger jobs report shows pace of job cuts slowing.
• By Jessica Dickler and Ben Rooney, CNNMoney.com staff writers 
• On Wednesday July 1, 2009, 9:07 am EDT

The pace of U.S. job losses has slowed but the labor market is expected to remain weak, according to reports released Wednesday.

Click here to read the article…

Comments: More green shoots spin. Let’s not forget that initial state unemployment claims, despite their recent pause, have broken out and will continue to rise in the coming months and years. This will certainly reinforce the vicious cycle of lower consumption, lower earnings, and further layoffs to protect the bottom line. Further layoffs will complete the cycle by depressing marginal consumption.

CIGA Eric

Jim,

Stocks fall as June job losses exceed estimates.

Stocks decline in early trading as US unemployment rate reaches 26-year high

NEW YORK (AP) — Stocks fell Thursday morning after a new report showed more job losses than expected in June.

Major stock indexes were down about 2 percent after the U.S. unemployment rate hit a 26-year high. European markets were also down following similarly disappointing data on unemployment in the 16 countries that use the euro currency.

More…

Comments: Birth Death model continues to cushion the headline job regardless of the short term expectations.

Eric

Jim Sinclair’s Commentary

Here is the first good turn of statistics that means a great deal to some.

What is represented is the placement of what is called "Ratio Spreads." "Ratio Spreads" are the tool of risk control used by commercial metals dealers.

"Ratio Spreads" are mathematical calculations when algorithms start to shift, calling for partial cover of a risk position.

"Ratio Spreads" are the calling card today of gold at $1224 (for starters) with of course the normal battle at the round numbers.

"Round Numbers" are numbers with zeros after them.

Jim,

Bullish options activity in gold. Options leads futures.

CIGA Eric