Jim Sinclair’s Commentary
Of course the ECB will remain in crisis mode. Bernanke has confirmed the same, therefore making illustration #2 below confirmed.
Illustration #2 had to be confirmed to get to illustration #3

ECB Keeps Key Interest Rate at 1%, May Maintain Crisis Mode By Christian Vits – Sep 2, 2010 4:45 AM [...]

July construction spending tumbles to 10-year low
Reuters
WASHINGTON (Reuters) – U.S. construction spending fell more than expected in July to its lowest rate in 10 years, according to a government report on Wednesday that added to fears economic growth was stagnating.
The Commerce Department said construction spending dropped 1.0 percent to an annual rate of $805.2 [...]

Jim Sinclair’s Commentary
One thing is for sure. Regardless of whether the rumors are true about the Chinese central banker, you can be sure the people who run the Chinese central bank will not buy many more US Treasuries.
Yes, this statement speaks to the Chinese rating of US Treasury investments, a definite downgrade that Moody’s and [...]

Jim Sinclair’s Commentary
The following is a rumor and must be read as such.
Stratfor is usually a good source.
What gets my attention is speculation on fear of the death penalty for owning US government bonds. That has to tell you something.
China: Rumors of the Central Bank Chief’s Defection August 30, 2010 | [...]

Dear CIGAs,
The newest fallacy is that the Fed has no more tools left to use.
The Fed has an enormous tool box called “QE to Infinity.” Nothing restricts that creation of money out of thin air whatsoever, which in turn means Currency Induced Cost Push Inflation. That is the message of illustration 3 below.