In the wake of this week’s further confirmation from EU Finance Minister DiselBoom that depositor bail-ins are headed to banks across the Eurozone, Jim Sinclair has sent an email alert to subscribers, warning investors to Get out of the system or financially perish.
Sinclair states that the financial flood-gate is straining (hence Bernanke’s unwillingness to even appear at Jackson Hole much less serve a new term), and that the further can-kicking of the mother of all meltdowns is no longer possible. Sinclair’s plea to investors and depositors alike is to: Ethically And Legally Exit The System While You Still Can!
From Jim Sinclair:
It is clear why Chairman Bernanke has not expressed enthusiasm about being reappointed as Chairman. In this meltdown of all meltdowns, he has accomplished keeping depositors free from loss or confiscation and temporarily plugged the hole in the OTC derivative meltdown phenomena. Both of these apparently are no longer possible.
The fever of activity by monetary authorities internationally would indicate that some financial flood gate is straining.
There is one thing you need to know, and one thing only. Get out of the system or financially perish. The worst of your problems is solved by your ethical and legal exit from the system while you still can. This is why I am holding these meeting internationally, not because I like to give up my time or add onto the traveling that is demanded of me.
“This has been an effort to juice the economy, and it has done its work,” he said. “The question is, what are its limits?”
“Since the beginning of the Great Recession the Fed has bought $2.5 trillion in bonds.”
“Even as Fisher blamed Congress and the Obama administration for failures on fiscal policy, he also expressed confidence that lawmakers would act to fix shortcomings in the Dodd-Frank Wall Street reform legislation, which was aimed at preventing future government bailouts of large companies deemed “too big to fail.”
“This is a train in motion to correct and simplify how we deal with ‘too big to fail,’” he said. “I do think there will be action on that front,” likely after June, he said.”
Problem is not inflation but fiscal stalemate: Fed’s Fisher Wed May 8, 2013 1:08pm EDT
(Reuters) – The Federal Reserve’s extremely accommodative monetary policy has not boosted jobs as much as it should because the U.S. Congress and White House cannot agree on tax and spending policies, a top Fed official said on Wednesday.
“Inflation is not an issue … I don’t think you can say inflation is doing any damage to the economy,” said Dallas Federal Reserve Bank President Richard Fisher when asked in an interview on CNBC what is holding back the economy. “The fault lies with the fiscal authorities, and until they get their act together, I don’t think you are going to find the kind of growth we would like to see.”
The central bank is now buying $85 billion in Treasuries and mortgage-backed securities each month to bolster an anemic recovery and push down the unemployment rate, now at 7.5 percent.
Far from igniting inflation – the biggest fear of central bank policy hawks like Fisher – the bond-buying program may be falling short of its goals.
Inflation by the Fed’s preferred measure is running at about half the central bank’s 2 percent target, leading some to speculate that, if anything, the Fed may be closer to expanding than paring back its asset-purchase program.