sinclairLegendary gold trader Jim Sinclair sent an alert to email subscribers this morning stating that the reason gold was massively shorted by the banksters at $1800 down to the lows near $1530 was the fact that inside info was intentionally leaked to them by governments wishing to suppress the gold (& silver) price that quantitative easing would be shifting to depositor haircut bail-ins

Sinclair states that as is plainly seen by the rapidly spiraling out of control Cypriot bail-in, the reason why gold has been so heavily shorted in the paper market is NOT valid, and shorts in the paper market must cover.
Sinclair states that this week’s events in Cyprus ensure that QE to infinity has its foundation solidly set in cement.

Sinclair’s full MUST READ alert is below:

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From Jim Sinclair:

The most important take away from the Cyprus situation is the following sentence  from my interview with King World News; “Because of that, any attempt to shift the weight of bank solvency to depositors has failed. This was the grand experiment which was to be the defining event where the financial shift from the onus of insolvency was to be placed on the shoulders of depositors rather than on quantitative easing.” This now wrong cause was the reason why gold had three major blocks thrown at it by the hedge funds at $1775 to $1800 as it was about to break into new high ground.

 

Information was given to this financial clique that QE would be reduced as bailouts turned to bail-ins, shifting the pressure of holding the Western world financial system together to the depositors and away from central banks. The enormous short by hedge funds was based on the now impossible-to-continue retreat of the central banks to make the depositors the source of bailout funds.

 

Therefore the reason why gold has been so heavily shorted in the paper market is NOT valid, and shorts in the paper market must cover. Bravely, these short are taking a gutsy position by trying to make gold’s move above $1600 look weak, but it is not.

 

The shorts major position of all time was based on what is NOT TRUE. They were totally convinced that they had us and certain gold writers supported their view. Now they do not have us, but on the contrary QE to infinity has its foundation solidly set in cement.

 

Respectfully,
Jim

 

  1. So Jim didn’t have this inside information at the time it was passed along, but suddenly he’s privy to it all after the fact and knows all the details of who when and why? Come on. Either you have “friends” who would have shared this at the beginning, or you have people who just pass along information after it’s all said and done, at which point the information is useless and its validity and the integrity of the messengers brought into question.
     
    Disclaimer: I am a silver stacker.

  2. ZDRuX …. thanks for saving me some time typing my response.  I’m getting a headache from reading his stuff lately.  I had to read that last paragraph twice just to make sure it didn’t say anything.  I guess he wants to use this Cyprus event/non-event as justification for whatever may or may not happen.  Wow, I’m getting as good as him.

  3. FLASH*****FUCKING FLASH****FLASH*****FUCKING FLASH*****FLASH
    The FDIC has just declared that “what happened in Cyprus won’t happen here”.  So now we all can sleep snug in our little beds!!!!
    Yes, and the tooth fairy is right around the corner!
    A decree like this translated is:  Watch out America, because you are NEXT! 
    Granted only 57% of us have anything to worry about, because Obama has taken the worry away from the rest since the freeloaders don’t have any assets they care about and Obama will just take from us what the morons need.
     

    • I completely agree with that comment that “what happened in Cyprus won’t happen here”.  The reason is simple, the banks would call a Bank Holiday and devalue the currency by 20% or 30%.  See they didn’t take any money out of your account, it’s all there and please count every penny.
       

    • @Silverrrr The FDIC has just declared that “what happened in Cyprus won’t happen here”.  So now we all can sleep snug in our little beds!!!!
      And if you believe that, then you’ll believe Jamie Dimon is the GOOD FAIRY. LMAO

    • This is how desperate the situation really is:
       
      In 1933, the US could at least devalue the US Dollar instantly because they just re-priced Gold.  Back then, the US Dollar was backed by Gold.  Now, there is NOTHING for the US Dollar to devalue against, because the US Dollar is all there is (and all other national fiat currencies are tied to the US Dollar)!  All that can be done to devalue the US Dollar is to create more US Dollars, which is exactly what they are doing.
       
      Now does everyone understand how desperate the situation really is?  In order to get out of a jam, the usual means for a country (eg, Venezuela) is to devalue the currency, but the US cannot even do that appropriately, because they have nothing to devalue against.  The US Dollar is the ‘foundation’ currency, yet it is not backed by Gold or Silver.  So, to say that the US could devalue the US Dollar by 20% or 30% means it would instantly need to create 20% or 30% more of money supply.  And if that doesn’t create world-wide inflation leading to hyperinflation, I’m not sure what would.

    • “The US Dollar is the ‘foundation’ currency, yet it is not backed by Gold or Silver.  So, to say that the US could devalue the US Dollar by 20% or 30% means it would instantly need to create 20% or 30% more of money supply.”
      @Plebian. Great Point, the dollar is only a Note.

  4. Sinclair may be overthinking this.  IMO the bail in was a recent evolution of thinking with Cyprus representing the smallest weakest target.  The smartest minds in our community did not see this coming nor did the people who usually psyche this out.
    The IMF and ECB failed to take into account the power of the Russians and Putin. They thought they could rope a dope the Cypriot legislature.  Gold price suppression is probably well disconnected from Cyprus. That’s more of a war between the east and west today. I don’t there is a butterfly effect here.

    • Furthermore, the bail in was specifically calculated here in cyprus, as the brunt of it would be felt by Russians, versus Europeans. Which is insane, unless looked at through the lense of a sociopath ( i.e. all the leaders).

    • Although I firmly believe that the carnival show in Cyprus is simply to set the scene for QE in the Eurozone. They will point to Cyprus and say, “Look what happens when we don’t ease!”
      They have created enormous, unpayable debts. Insolvent nations have run up massive overdrafts at each others’ banks. Now it’s time to monetize that debt.

      QE EuroZone is coming.

  5. Jim Sinclair did not say he had any inside information.  He said the hedge funds had inside information.  In summary, this is what Jim Sinclair is saying:
     
    * Central banks were planning to use ‘Bail-Ins’ in lieu of ‘Bail-Outs’, to try to reduce their QE efforts.  Bail-Ins take people’s money to pay for bank bail-outs.  Normal ‘Bail-Outs’ require printing of money via increases in QE.  This information was leaked to hedge funds.  A reduction in QE is supposed to lead to lower prices for Gold and Silver.  Therefore, hedge funds shorted Gold and Silver heavily.
     
    * The central bank’s ‘Bail-In’ experiment in Cyprus has turned into a nightmare scenario for them.  It has failed.  Therefore, central banks will be forced to continue to implement ‘Bail-Outs’ instead, requiring more QE.  Hedge funds were counting on ‘Bail-Ins’ to work, so that central banks could reduce QE, which would lead to lower prices of Gold and Silver.  But now QE must go on, so Gold and Silver prices will increase instead of decrease.  Hedge funds will therefore have to cover their shorts.
     
    Worse yet, the problems in Cyprus could easily lead to the bankers’ worst fears: a world-wide run by private citizens on their bank deposits.  This is the reason that they increased FDIC bank deposit ‘insurance’ from $100,000 to $250,000 at the very onset of the financial crisis back in 2007/2008.  They wanted to avoid a bank run at all costs.  This is also why they have just come out with official posted messages trying to calm the population, saying bank deposits in the US are ‘guaranteed’ for $250,000.
     
    But think for yourselves.  If there were really major bank failures across the board in the US, do you really think $25 Billion is going to be enough to ‘guarantee’ everyone’s deposits of $250,000?  You would be doing well to get $0.25 back…

  6. New Zealand?  WTF  Banksters rehypothecate the sheep and the depositors get sheared.  This bail in phenomenon will hit our shores in  no time. 
    Plebian, it’s like you say, the FDIC is a toothless sucking black hole without a shred of decency when it comes to paying depositor losses. The FDIC will fail to bail, the Fed and leaders will demand a bipartisan bail-in for one or more TBTF criminal bankster empires, maybe Chase with its problems, paid for by a SMALL SLICE of everyone’s savings, CDs, checking, stock, bond and private pension accounts.  Just a little slice to spread the pain of a bail-in equally amongst the homies.
      With $30 trillion in private personal and company accounts, 1-2% is $500 billion.  Just enough to take care of one mega bank.  This is already baked in the cake. The fed sent $1.2 trillion to the Euro bank to stave off the bank runs.  The IMF is based in DC.  Legard is a friend of Obama and his Chicago cronies.  The dots do seem to connect.  This back door bail-in might fail in Cyprus and NZ but we are a fat juicy target filled with idiots who allow themselves to be lied to, lay back, spread eagle as they are fiscally raped by these supra-corporate fascistic bankster criminal.s

  7. Most likely Sinclair didn’t have exact information on this new Bail In strategy.  He probably had some rumors that he couldn’t repeat because rumors don’t materialize in most cases.  The bail in has failed and has caused much more problems than they bargained for.  Perfect to use Cyprus as a test case though.  Cyprus is screwed.  They cannot open the banks back up until the bank theft is a done deal.  Then there will be bank runs which will take the banks down anyway.  If they don’t go thru with the bank heist there will be bank runs anyway and Cyprus will go down the tubes anyway.  Done deal.  The politicians probably are very worried for the safety of themselves and their family’s.  Rightfully so.  No one can hide in Cyprus.  Gold has no where to go but up now.  It may take awhile for Europeans to sort this issue out in their mind but they are thinking about buying gold now.  Seriously.

  8. Sinclair has been talking about the big boom coming around March 27th and Max Keiser the big boom coming out in April with the total collapse. Now Max Keiser maybe eccentric and yet he has been on the money with this one. Let see what happens in April. Just purchased some metals..They want to keep silver around $29.00 a consolidation period before the big bang theory of Jim Sinclair, Max Keiser, Peter Schiff, Gerald Celente, Jim Rodgers etc

  9. So hedge funds got leaked information that depositor bailouts were the next crisis, and no one was going to use QE, therefore short gold and silver, and they believed this BS?  No chance, the hedge funds have seen QE being used for 5 years, and now all of a sudden they are going to use depositors money to bailout the banks around the globe, give me a break.
    What would happen if depositors money was going to be used to bailout the banks?   Bank runs!!! The worse thing for the banks, and the best news for gold and silver, and hedge funds were going to short gold and silver on that outcome?  No way.
    Hedge funds are not that dumb, some may be, but that is not bearish for gold and silver at the end of the day. Did the hedge funds really think we are going to live in a world where they take 10-20% of desposit accounts, talk about total chaos, not going to ahppen.
     

  10. Q E can not stop. To late for that. It is the life support for everything now. I certainly wouldn’t say TPTB won’t do bail ins on the results of Cyprus. Taking our money doesn’t frighten them the way taking KGB money seems have frightened them. Except for here in the U.S. because we are armed to the teeth!

  11. When you play the board game Monopoly and the bank runs out of money, you just take some slips of paper and use a pen to create new money (that is sort of like QE.)
    On the flip side, I don’t recall ever playing Monopoly when the bank runs out of money, and the banker just tells all the players to fork over 10% each to refill the bank.   Perhaps Parker Brothers should update the rule book to ensure a “Bail-In” is against the rules.
    One way or another, the govt/banksters WILL get your money by hook or by crook.  It can be inflation/devaluation, taxation, financial repression, and/or outright confiscation (aka “bail-in”  LOL) Oh wait, I FORGOT. There is ONE WAY they can’t get your money – REAL ASSETS HELD DISCREETLY OUTSIDE THE SYSTEM. Take that and SUCK ON IT Uncle Schlomo and Fed Criminals.
    These banksters were straight up DUMB on this one.   Are they drunk on power?   Are they so far out of touch with reality they just didn’t think it through?   Are their IQs falling due to bankster inbreeding?   LOL

  12. Maybe my old head is fuzzy, but I seem to recall this same sort of heavy-handedness (minus depositor-raids) by the IMF in South America and Africa back in the sixties and seventies. Am I wrong about that?

    • @PatFields:  Yes, the IMF has a history of being a bully and they were especially harsh with Third World countries in the 1970s and 1980s (started in the 1960s, but they had a learning curve ;-)
      Frequently, a country would get itself into a corner given corrupt leaders running the place into the ground.  They’d need to do some sort of restructuring, which brought in a bank holiday and then, a devaluation of the currency, the net result of which isn’t all that different from a depositor raid where a percentage of an account is taken. Austerity programs were usually launched thereafter.

  13. Gold from 1800$ to 1530$ per ounce? That is a lot of fiat dollars saved if you buy gold at 1530$! The government is actually helping us stackers to buy more precious metals cheaply, easily and faster by suppressing their prices.

    • @Sumkid
       
      True enough and lots of folks point this out. The problem lay in that the ‘benefit’ to stackers is brought about by criminal means. It’s as if we ‘poor folks’ are receiving food and shelter from someone who’s gone out into the streets at night stealing it at gunpoint from others whom themselves may well be just as poor. This is a species of financial … cannibalism!

      Many stackers are oldsters, who’ve been scrimping and sacrificing myriad small and large luxuries of life, in order to have comfort of independent provisioning in their feeble years. So, you see, the ‘benefit’ to current stackers is truly stolen from those who’d had vision long ago and rightly deserve the proper reward of their correctness.
       
      Sadly, the truth of the matter is that present stackers need to face the reality that in a palpable way, they’re ‘receiving stolen goods’.

    • @PatFields That’s true, but for us the current stackers, we have no other choice. We all just want to protect our wealth from these devaluations of fiat currencies. Also at the same time by buying physical precious metals, we are attacking the cartel.

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