The legendary Jim Sinclair has sent out an email alert to subscribers stating that the economic effects of QE3 will soon enter the markets in the next 90 daysSinclair states that QE1 and QE2 were NOT failures, they prevented/forestalled the largest economic collapse in world history.  Sinclair states that QE, which is now QEternity, is ‘the only tool available to central banks that would create infinite cash for the Fed and Treasury to use in a totally discretionary manner.’

Sinclair states that within 90 days the economic effects of QE3 will be entering markets for money and therefore the markets for gold, silver, and most certainly the dollar will be affected, and states that ‘gold is going to at least $3,500, the dollar will test .72, and silver will ‘certainly perform well also‘.

GOT PHYZZ??

From Jim Sinclair:

Everyone has an opinion of QE3. Almost all are wrong.

What has taken place here in its size, and in an almost simultaneous international unified approach has no precedent in economic history.

QE1 and QE2 were not failures. Do you have any idea what the world would have looked like if every major bank in the Western financial world broke?

It is easy to be a naysayer and say let the banks go broke, but you have no idea how hard it would have hit you and yours and maybe gold and silver. This is not to say that Debt Monetization, which QE represents, is correct, but it was the only tool available to central banks that would create infinite cash for the Fed and Treasury to use in a totally discretionary manner. Governments, because of the size of their debt, were incapable of applying the better tool for reviving economic activity, which is fiscal stimulation. One thing for certain is the infrastructure of the USA is collapsing in front of your eyes. Dar es Salaam airport looks better on approach than JFK. Dubai is beyond description. Roads from the Beijing airport are brand new. The USA infrastructure is disgraceful for a major power. New York City roads look like “Mad Max and the Day After.” However when you are the major debtor nation fiscal stimulation is simply not possible. It will not happen because it cannot happen.

Please stop listening to those that tell you QE will have no effect. They are “Ignorant to Infinity.” QE3 is going to have an unprecedented effect, as it is now simultaneous and global in scope.

Please make note of all the governments that screamed at the Fed for the use of QE1 and QE2 that are now applying QE to infinity.

There will be no QE4 because QE3 is going to go on continually with a month or two off now and then. Please recognize that it is hard for markets to discount what they do not believe in and therefore by definition do not anticipate.

Know within 90 days the economic effects of QE3 will be entering markets for money and therefore the markets for gold, silver, and most certainly the dollar.

Gold is going to at least $3500. Silver will certainly perform well also. The real support for the US dollar is .7200 on the USDX and it will trade there. The euro will trade at $1.35 and $1.40.

Ron McEwen of MUX fame said it correctly: “Patience is bitter; but the fruit is sweet!”

Respectfully,
Jim

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  1. I’m happy that there are delays for the largest economic collapse because that way, I have more time to prepare against it since I’m still not ready. Things about the current situation are getting more and more scary as we move on.

  2. “When fiat is becoming worth less and less the value of that stock goes down compared to gold/silver.”

    Usually, when fiat declines, it takes more of it to purchase REAL assets.  Shares of Chevron, for example, represent ownership in the oil giant’s hard assets.  Even if the dollar were to collapse, I think that the big multi-national US companies that pay dividends will survive.  Just be sure not to hold any stock shares in street name but in your own name.  Have the share certificates mailed to you and pay the cost for that with a smile on your face as you will not be having any future MF Global moments.  I am not saying that we should all hold nothing but stocks but that we should have some productive companies shares in our portfolio, especially energy, food, drug, and ag companies.

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