The legendary Jim Sinclair sent an email alert to subscribers tonight, warning that all hell is about to break loose in the form of currency induced cost push inflation.  Sinclair warns that the dollar index is headed towards .72 before crashing through long term support, gold is headed to $3,500 and beyond, and that the Fed will print to infinity to prevent a collapse of the Eurozone.

Sinclair’s full alert below:

From Jim Sinclair:


Gold will trade at $3500 and beyond. The US dollar will test USDX .7200 before heading lower.


Whatever is required, be it time or money, the Euro nations will get. The Fed will, via swaps, backstop the euro. QE will go to infinity both here and there.


The Chinese have publicly said when the gold market takes a hit they will be buying.


Calm down. Emotions are being run by machines, HFT and nerds who hide behind their computer. They will not win.


All hell is going to break lose, and its name is Currency Induced Cost Push Inflation.


Banks told by Fed to test for 12% unemployment   

Nov. 15, 2012, 5:05 p.m. EST
By Ronald D. Orol, MarketWatch


WASHINGTON (MarketWatch) – The Federal Reserve is asking 30 big banks to make sure their capital can withstand a deep recession in which the unemployment rate rises to 12%.


The Fed, which first required big banks to conduct “stress tests” in 2009, laid out three scenarios lenders have to test against. The goal is to ensure that the firms have enough capital to continue operations during stressful economic times.


The Fed stressed they were not making economic forecasts “but rather hypothetical scenarios designed to assess the strength of financial institutions in stressful economic environments.”


In addition to considering an unemployment rate of roughly 12% – up from 7.9% in October – in the most severe recession scenario, banks must evaluate how their capital buffers would withstand real GDP declining by around 5%.


Banks will also have to test for equity prices that would fall by more than 50% over the course of the recession, with house prices declining more than 20% and with commercial real estate prices falling by a similar amount.


While harsh, the Fed stress test isn’t necessarily as bad as conditions actually were during the so-called Great Recession from late 2007 to 2009. The unemployment rate rose from 4.7% before the recession started in Nov. 2007 to as high as 10%, the economy shrank as much as 8.9% during one quarter, and home prices have tumbled by roughly a third from their peak.


The 30 largest U.S. financial institutions will be required to submit capital plans to the Federal Reserve by Jan. 7.


The Fed said that 19 of the largest banks under review have hiked their common capital to $803 billion in the second quarter of 2012 from $420 billion in the first quarter of 2009.


The Fed uses the stress tests to decide whether to allow banks to issue dividends and implement stock buybacks. Under the process banks tell the Fed what dividends and stock buybacks they want to issue. For the first time, the Fed will allow banks to modify these proposals while they discuss the ongoing stress tests with the central bank.



  1. When the general public learn half the stuff we know on this message board all hell will break loose.
    Bush tax cuts ending
    Extended Unemployment ending
    $1 Trillion across the board spending cuts coming in January
    Debt Ceiling Crisis will lead to another Debt Downgrade in 2013
    Not enough Taxes will be collected next year to cover debt will lead to more Inflation
    State Secessions
    Obamacare to raise taxes 4-5%
    Fiscal Cliff
    Drought will lead to higher food prices
    Obama Impeachment coming.
    Higher Energy prices due to Coal Plant closing and Shortage of Uranium in U.S
    Shit is Going to Hit the Nuclear Powered Subs Propeller Fan in 2013!

    • “Obama Impeachment coming.”

      All of the above except this.  There is no way in hell that any Dem will ever be convicted by a Dem controlled Senate for any reason. The House can Impeach Obummer all they want but a conviction?  No way, no how! 

    • I’m glad that there is a shortage of uranium because that way, the USA won’t be able to use their nuclear power plants so there will be less risks at getting a Fukushima-like disaster again. When the majority of the people discover these information like us, it will be too late for them so they will attack us to get our physical gold and silver.

  2. What I still can’t believe is no one stood up to China recently announcing they will use the Yuan for oil swaps which is a direct attack on the U.S. Dollar’s world reserve status. 
    Time will tell but this is what has me really concerned.  I believe all the forecasters out there like Sinclair, Celente, John Williams and others see this as a major blow to the currency which will start playing out in 2013. 

    • This Chinese announcement is only the first step toward replacing the dollar but it makes it very clear of their intentions. The announcement that I’m waiting to hear is that the yuan is now backed or exchangeable for gold and at the same time and more importantly, OPEC will reject any use of the dollar. We’ve been conquered by foreign banks who’s power exists at the end of a printing press and our blind faith in these institutions. They have destroyed us. the only way out is to get what PM we can and demand a new debt free treasury note that is illegal to export. In the new paradigm, I believe gold, silver, oil and maybe a few other tangible commodities will be the only thing acceptable for foreign exchange and GMO corn & soy wont be included

    • Maybe that’s a sign that the USA has no powers left inside it like before in the 1950’s and if the USA declares war on China, then China will be able to wipe it out of the map since China has a lot of resources and people. If that happens, then WW3 will start.

  3. I have been holding off selling some of my silver to get some major dental done like 16 -20 thousand. But with everything going on in the Middle east, Europo, China, Japan, and the US it has to pop. Since I have to sell some I would like it to be as little as possible witch mean a big jump in the spot. Wake Up Sheepeople!!!!!!!!! 

    • Yeah I am also getting my teeth fixed as well before the year is out. Have to get a broken wisdom tooth removed as well as a new crown. I figure no time to procrastinate while I still have great dental coverage that I rarely use.

    • @Mammoth
      Im going to need a complete grill lol so there will be no fillings. I was thinking I would offer to pay in silver to each of the dentist I’ll be needing. When I go in to the first one for consultation Im going to ask. Also maybe I can pay for half of the work up front and be billed monthly for the remainder. I just keep kicking the can down the road but would rather have good teeth prior to TSHTF when the choice of food is not there.     

    • Do Not waste your silver for dental care in USA , just google dental care in Mexico( there is several dentists right across the border in Tijuana for US citizens) and make it a vacation , dental trip for 50%  and much better care . You can call them ahead of time , they speak english and find out everything you want to know before you go . good luck

    • Go to Sexton Dental Clinic in Florence SC. People from around the USA go there because it is so good and soooo inexpensive. Give them a call. You can Google Sexton Dental for their number.

  4. The inflation caused by money-printing & currency manipulation is going to push even more folks out of their jobs.

    If you are a Trader, then forget ETF’s, forget ‘Paper,’ and start stacking Twinkies to re-sell and triple your investment!

    Hostess, maker of Twinkies, to go out of business; strike cited
    –  –  –  –  –  –
    Now – before you fly off the handle and start bashing the unions, consider this:
    –  –  –  –  –  –
    The company cited increasing pension and medical costs for employees as one of the drivers behind its latest filing.”
    –  –  –  –  –  –
    And also consider the following as well:
    –  –  –  –  –  –
    The union said in a statement that Hostess made unreasonable demands, including wage and benefit cuts of around 30% for workers, while top executives of the company received large pay increases.  Wedrick Hollingsworth, business agent for Local 372-B of the bakers union, said union members took wage and benefit concessions four years ago and are unwilling to accept further wage cuts and reductions in health and pension benefits sought by the company.

    Too many people are always ready to bash the unions, which plays right into the hands of the Corporate Masters.  So if you are upset because they are taking away your Ding-Dong, blame the corporations and the politicians who are bought & paid for by them, not the union.


    •  I read about the Hostess company going out of Business this morning on Zero hedge. I was dissapointed. I was seriously considering buying a few boxes until I remembered I am on a diet. Damn! Oh well. Probably for the best.

    • Wedrick Hollingsworth, business agent for Local 372-B of the bakers union, said union members took wage and benefit concessions four years ago and are unwilling to accept further wage cuts and reductions in health and pension benefits sought by the company.”

      Looks like they found a way to reduce their pay and bennies 100% instead of 30%.  OK, so an incompetent management group will be out and new companies, who will need experienced workers, will make Twinkies, Ding Dongs, and all that other useless crap instead of Hostess.  BFD, IMHO.

    • But don’t forget that the company who produces Twinkies is going bankrupt. I heard that news about a year and a half ago. Although, Twinkies still will be a good investment because the company will not be producing them anymore so you can some of them for later in the future and then sell them high on EBay.

  5. If it appears that Congress will raise the capital gains tax, I look for many investors cashing out in order to take advantage of the 15% rate at this time. This would place billions of dollars into the hands of investors who will be looking for somewhere to earn higher returns than the dirty% the banks offer. Should these investors turn to PM, it could result in the price of gold and silver being on steroids.

    • SO… if the cap gains tax rate is raised, does this also mean that the deduction for losses will be bigger too?  If so, then sell those winners in 2012 and those losers in 2013.  😀


    • @Bay of Pigs … I don’t know about that, but his 1764 call was not so hot. I’m only being grumpy because I am sick of waiting for the S to HTF, and listening to people saying it’s just about to (me included) 😐

    • @chief   
      I’m only being grumpy because I am sick of waiting for the S to HTF, and listening to people saying it’s just about to (me included)
      Hope you feel better soon i’m getting tired of all the hype myself. Lol

  6. @SilverBullion I believe the Shock and Awe Effect is here. I was going to buy a couple of hundred Walking Liberty Halfs this morning until I found out how much they wanted. $14.00 ea. that’s a whopping $2.28 over spot. That was through Eastern. Whoa maybe the dollar is losing it’s value. Lol Keep Stacking with every spare Fiat you can afford.

    • 14$ for each American half dollar? That’s a lot compare to one of my local coin shop! My local coin shop sells American silver dimes for 2.40$ each, quarters for 6$ each, halves for 12$ each and dollars for 24$ each. The best deal for the moment is buying Canadian junk sterling silver coins since they are sold under spot only for me. 🙂

  7. @Marchas45, glad to see somebody else out there appreciates the classic Walking Liberty Half dollar!
    APMEX is selling bags of $100 face-value for $2,600 = $13/ea.  I bought a bag last November for $115 less, so not much change in price, in a year’s time. 


  8. @marchas45, yes I figured you had your sights set on the Walkers.
    I was trying to give the Doc a plug for his product.

    BTW speaking of Silver Halves, the reason why the eagle on the back of the Franklin Half is so tiny, is because Benjaman Franklin wanted the Turkey to be the National Bird, not the Eagle – who has been known to bully & rob food from other birds.   Would have to agree with old Ben today.

  9. It concerns me that no stress tests are done on institutions with less then 10 billion in assets. We the People should conduct our own stress tests. This could be done by orchestrated withdrawals or bank runs by state. If we got say 15% of people with extra capitol in their savings, checking, money market ect. to withdraw it and put where your grandmother told you, UNDER THE MATTRESS. when the 5th guy in line can’t get any cash the jig will be up and the people will see fractional banking for what it is, a PONZI COUNTERFEITING FRAUD. There’s Nothing like a Bank Run, that brings Communities Together

    • I pulled $1k out of my savings last week and the bank had a fit, kept asking what I was going to use it for etc. told them none of their business it is my money not theirs. I cleaned out their cash on hand that day and they had to run to the main bank 17 miles away to get more. They wanted me to fill out paperwork too and I asked what for. They said the government tracks large withdrawals and I told them this wasn’t enough to file the paperwork I know the laws. They pull this again I will be changing banks but it is handy because they are in town. A different bank means a 17-30 mile run.

  10. Mary… my local CU does not give me ANY hassle at all for making cash withdrawals.  I have withdrawn cash in amounts up to and including $8,000.  The only problem they have is that they only keep a small amount of cash at their various branches.  They have a big vault at their main office location that holds a lot of cash that can be sent to the branches on demand.  All I have to do is call up the branch, ID myself, order the amount and denominations I want, and they’ll have it ready in 2 days.  They even call me to come get it when it comes in.  It’s only about 8 miles over to the main office but why drive over there if I don’t have to?  

    As to banks, I would not ever use a bank for anything related to money.  I am unimpressed with their activities and operations.

    I made a withdrawal of $50k from an on-line investing account with a discount brokerage last year and the guy I spoke with asked me if I would mind explaining why I was withdrawing such a large amount.  I said that I would and didn’t.  He backed off immediately.  On thinking about this further it is likely that he was just concerned that I was unhappy with their service.  I probably should have mentioned that it had nothing to do with their services, products, or employees.  I still have money with them and see no reason to antagonize them unnecessarily.  So far, they have met my investing needs in reasonably good fashion.

    • I also don’t have any problems with my local bank when I withdraw all my cash whenever I receive some in my account. I only leave about 20$ inside. I do that because my purchasing powers aren’t safe inside the bank. I have never deposit some cash in my account by the way!

  11. Inflation will draw people’s attention even more when the government is going to release the 500$ bill or when the penny is going to be totally removed from circulation. The annual inflation rate is way higher than the official rates. The Federal Reserve sure will print to infinity because they have no more options left.

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