Jim Sinclair: If Bernanke Leaves, the Jig is Up & A Monetary Mushroom Cloud is on the Horizon!

Jim Sinclair sent an email update to subscribers this afternoon regarding media reports that Fed Chairman Ben Bernanke will step down and retire when his current term expires in January of 2014.

Sinclair states that like former Chairman Alan Greenspan who retired immediately preceding the collapse of the housing bubble leaving Bernanke holding the bag, if Bernanke steps down a year from January, it will indicate a monetary mushroom cloud of EPIC PROPORTIONS looms on the immediate horizon and Bernanke has no tools to prevent it.

 

From Jim Sinclair:

 

Believing what you read in the pre-election weeks, especially what is attributed to friends, is risky business. However, let us assume that there is some truth to this. What would it mean?

 

When Greenspan’s term was up what did it mean? It meant pretty much the end of the monetary system was at hand, and Bernanke was Greenspan’s bagman for the fallout. If Bernanke leaves then the monetary mushroom cloud is visible in the horizon and he has no tools to prevent it. The new Chairman could be nothing else but Bernanke’s bagman for a disaster of colossal proportions.

 

If Bernanke leaves, the jig is up.

 

No tools exist in any tool bag other than QE to handle national bankruptcy and the attendant conditions. There can be no other interpretations. That could be the signal for those who have contingent plans to grab the “Bug Out” of whatever type bags and run financially or physically.

 

Bernanke probably won’t stand for third term at Fed: NYT  October 23, 2012 7:14 AM ET

 

(Reuters) – Federal Reserve Chairman Ben Bernanke has told close friends he probably will not stand for a third term at the central bank even if President Barack Obama wins the November 6 election, the New York Times reported.

 

Republican presidential nominee Mitt Romney has already said he would not re-nominate Bernanke if he wins the presidency. Bernanke’s term as chairman ends in January 2014.

 

Bernanke, who was first appointed to run the U.S. central bank by former president George W. Bush and was given a second term by Obama, has declined to comment publicly on whether he would accept another four-year term.

 

“I am very focused on my work, I don’t have any decision or any information to give you on my personal plans,” he told a news conference last month after the Fed announced a new and open-ended round of bond buying to support the U.S. economy.

 

The Fed’s unconventional efforts to spur growth have been criticized by many Republicans and some economists who argue that they threaten future inflation and abet profligate spending in Washington.

 

Treasury Secretary Timothy Geithner has already made it clear he wants to leave by the end of the year.

 

Former Treasury Secretary Lawrence Summers would be at the top of Obama’s list to replace Bernanke, although his reputation for not being a team player could count against him, New York Times columnist Andrew Ross Sorkin wrote.

 More…

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Comments

  1. So it hinges on the Bernank’s retirement? lol

  2. Probably because he’s so aptly at fault!!!!!

    If Romney prevails in two weeks, naming Ron  Paul as a “money guy” and maybe Ohio’s Kasich as another “money guy” and we are on our way out of this mess.  It WILL be painful, but its a far better choice than what we are faced with right now!     

    • Is there any reason to believe he would tap RP or Kasich? or do you mean Dennis Kucinich? (Also Ohio) 
      Kucinich was seen on a youtube video with Ron Paul, and the interviewer suggested they run as Prez and VP, 
      and neither one disliked the idea! They BOTH agree that we need sound money (Gold Standard) and as we all know, RP is listed as a Republican, but Kucinich is listed as a Democrat, but BOTH are excellent gentleman and Great Americans!  

  3. Is this a timeline where the wheels come off?  That’s less than 14 months which means the gravy train will continue for at least another 3 to 6 months. 
     


  4. Nearly all US and dollar centric speculations leave me …. uhhh … flacid. This crisis is global and the American banknote is only one ‘name’ among many others applied to the monolithic, universal ‘banknote scheme’. I was just explaining to some folks enamoured with the idea of a ‘local debt-free ciurrency’, that the fundamental problem with all paper currencies throughout history is … inflation. As paper currencies expand in volume they trigger higher prices which in turn triggers more printing. That process destroys SAVINGS, which is the fuel necessary to drive INVESTMENT and economic GROWTH.

    There has been a REASON that metallic money has survived 5,000 years, while ALL paper ‘money’ imitations have failed. It’s because, as they’re produced from a commodity, metals have their own supply-demand characteristic which meshes with those of all other goods. This inter-relatedness results in a rationally optimized ‘price’ structure. With relatively constant ’prices’, the prospect of savings for our feeble years has DEPENDABLE prospects of meeting our future needs.

    Neither the US or The Bernank has ANYTHING to do with ANY of these deepest of fundamentsls. The cascade of defaults and bankruptcies has begun because that’s the mathematical culmination of the paper currency scheme … practiced globally.

    • Thank you Pat, I always enjoy your well crafted postings.

    • I couldn’t state it better myself.

    • I Second that! (err, Third! lol)

    • “… the fundamental problem with all paper currencies throughout history is … inflation. As paper currencies expand in volume they trigger higher prices which in turn triggers more printing.”

      To be successful, any currency MUST be backed by something of real value.  In the past, this was silver and gold.  These days, there is no backing of any kind.  If a currency was backed by the productivity of the people living in the issuing entity, there would not be inflation.  It is only when people print unlimited currency that is not tied to national productivity that the wheels come off the cart.  Unfortunately, no one seems able to resist the urge to print and spend more than they earn.
       

    • The reason why most people still trust the fiat system today is because they think that humans have discovered their mistakes from the past since we are more modern and developed right now so no such thing will happen again.

  5. So this is a bit off topic (and  know I sound like a broken record, my apologies in advance),
    but here is something from Jim Sinclair which I found quite interesting today… here is what he wrote:

    There is a key lesson that good parents teach their kids. You can know a person by knowing whom they keep company with.
    All the big money in Russia looking in Africa is ex KGB. The absolute majority of big money in Russia is all ex associates of Putin at the KBG. These are dangerous and very scary people. They make Dexter look like a saint.
    The Chinese may be tough to deal with, but they are not as dangerous as the Russian big money guys and companies are. When Communism and Maoism went broke, thanks to the Master of the Universe Volcker, I went to Tanzania, not Russia, where everyone was going. Most of that rush to Russia now wishes they never heard of the place in private conversation.
    Putin is no joke. He is the real thing.”
     
    I agree 100% with Mr. Sinclair on this one.
    Now here is the thing: I am an obsessive broken record who is sometimes off-topic, but it is worth repeating: the Russians are NOT your/our friends.
    Yes there are wacky weirdo illuminists and elitists in the West, but when Russia gives you expert after expert on RT that tells you want you want to hear, with a heavy bent on criticizing everything American/Israeli/European, alarm bells should be going off in your brains.
    I’ve never met Lauren Lyster, but from what I can see, she is the typical Russia agent. What, you think the Russians are stupid enough to use girls called Natasha with deep Russian accent to get you to see them as your friends, as the guys that will help you find financial freedom and survival in the midst of an elite-created crisis? Ha! That would be too amateurish!
    Think about it, When did Lyster ever criticize Russia’s interference in Ukraine? Russia uber-cronyism?
    Never.
    Max Keiser?  This guy is smart and witty, but again, he is an American with an American co-host, yet all he does is criticize America and Israel and Europe on RT and on PressTV. Do you really think the Ayatollah’s and the Kremlin pay him big bucks to live in Paris because they’re all a bunch of oppressed down-and-outers struggling against American cronyism? Why do you think Max lives in Paris in the first place??? Paris is KNOWN as the world capital of spook intrigue! Money talks, and Max is bankrolled by the Russians and Iranians. And look at Max’s resume. He’s got a background in Hollywood. And Silver Liberation Army??? I’m all for honest silver markets, but this smacks of Soviet-era terminology! Populist appeal to liberate the oppressed! Ha!
    And last but not least among many others, Jim Willie. I don’t know him, never met him, but admire his analytical skills and understanding of finance. Very intelligent. BUT, apart from living in Costa Rica etc., it is fascinating how he always comes back to this issue of Israel being a bad guy and Iran being innocent of nefarious intentions. He goes on about Russian Onyx and Sunburn missiles that can hurt America (and they can), and he claims that his good sources tell him Iran doesn’t want a nuke and goes on a rant against the pro-America Shah of Iran (what a farce!!!!). I can’t judge him, not knowing him, but he is either bankrolled by the Kremlin, or some of his sources are favourably disposed toward the Kremlin. This world is so complex, and just because a Westerner with connections tells you something, means nothing. Many a Russian has defected to the West, but many a Westerner has given allegiance to the other side. And even within the military/intelligence world, there are factions which see the world through very different lenses. Just because some CIA or NSA or FBI guy speaks against the Jews in favour of the Iranians means nothing… even many Israelis want the approval of their distinguished anti-semite colleagues overseas and sell out on Israel (case in point, many, though not all, in Israeli intelligence supported the Oslo Accords, the withdrawal from Lebanon, withdrawal form gaza… etc… because of their deluded ideas that they could make peace with the Muslims buy giving them chunks of land… but these Israeli experts often look more to their international connections overseas and to their potential political careers than the truth on the ground…. and liberal ideology is prevalent in some Israeli quarters). So I really don’t know if Jim is on the payroll, but from all the experts he quotes and his friends (such as “Brian”… perhaps the alias of a guy whose adopted name is Dmitry?? or maybe one of many former US agents whose views clashed with the clearer-focused agents whose views often get suppressed by superiors who “aren’t led by their emotions”…. who knows), but my guess is that if he is well known in this community being friends with Mr. Keiser in his Paris outpost, and seeing as the Russians know this community very well, my guess is that the Russians know who Mr. Willie is, and might have an interest in influencing his genius analyses with their worldview.
    Here are a few links to show that those Russians are active, and that the fight against global islamist aggression is not a fantasy.
    http://internet-haganah.com/haganah/
    http://www.cbc.ca/news/canada/nova-scotia/story/2012/10/10/ns-delisle-spy-hearing.html
    http://www.cbc.ca/news/canada/story/2012/01/20/f-jeffrey-paul-delisle.html
    http://www.cbc.ca/news/canada/nova-scotia/story/2012/10/10/ns-delisle-how-why.html
     
     
    Anyway, that’s a long rant, all to say that: I agree with what Mr. Sinclair had to say today.

    • “Centralization of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly.” –5th Plank of the Communist Manifesto

      That’s nearly all I need to know about Commies to understand why THEY hate banks. The collectivist bent is toward direct government issue of Plantation Scrip. In the American Hamiltonian (Mercantilist) variation of the ’Paper Empire’, banks are merely gossamar veils of government’s Treasury, by which it deigns who the favored and languishing are to be.

      I despise BOTH as EQUALLY dangerous to The Peoples’ Liberties. Exclusively hard money under the sole purview of The People is the most effective limiter against ALL government over-reach.

    • Is Lauren Lyster Russian? I don’t think so because of her name and her accent so she’s American. Maybe the reason she didn’t criticize Russia’s interference in Ukraine is because it wasn’t part of her line so couldn’t say it.
       

  6. I disagree with Jim Sinclair i.e. the Jig Might be up right now.  Ben Bernanke is an idiot and the bag man.

    Volker and Greenspan were very smart.  Bernanke is not, therefore he is the bag man.

    • I agree with you Badger … I feel that things are coming very soon. But as to who is to blame I believe it will not be allowed to be a monetary only collapse. Given all the propaganda I believe there will be escalating war at the same time the dollar goes down, and that the war and the dollar collapse will be blamed on the horrible, incorrigable and intolerable Iran +/- other enemies of freedom (ie. enemies of Israel). Therefore, it will not be the fault of any chairman of the j e w i s h Federal Reserve.

    • I don’t know who Volker is and I only know a little about Greenspan since I wasn’t aware financially during that time. So I’ll just take your words and I’ll do a little research when I’m free. :)

  7. Bean Berwanky isn’t earning his keep until the current equities bear trap snaps shut. What is with all the down days? :)

  8. I don’t think the dollar will last that long. After the election things are going to crash.

  9. A few errant thoughts this evening.  The S&P, the most signficant of the equity indices, is going to have some very bad days in the next few weeks.  6 months ago it was increasingly apparent that the Euro decline and recession/depression coupled with the double digit drought of China Europe trade would hit the S&P earnings.  20% of the S&P companies are Euro based.  25% of the S&P company sales are Euro based.  The intervening 6 months has been a sufficient time period for earning and sales to crumple.  In addition, our major firms are showing the sales and earnings strains of world wide slippage in growth that are reflected in significant declines in GDP.   The big engine of China is going in reverse when inflation and internal growth balance out to the negative. In reality, no country of any size is showing growth, thus the cavalcade of earnings misses.
    There will be some serious fear factor liquidity selling in the equities.  This might, and I only say might, include precious metals.  Unlike the big PM price drop of 2008-2009, we might dodge this bullet but in my opinion we could easily see silver break below $30 an ounce of the equity markets have a crash that can’t be mitigated by the plunge protection team.  Today’s decline is probably reflective of the market price drops.
    If it was me and I had some dry power left, there could easily be a short window of buying opportunities coming up in the next 30 days, providing us with another chance to buy more or average down the cost of the present stack.   Despite nearly overwhelming demand for silver and gold, a liquidity crunch and fear in the bourses drags down all commodities.  The Casey price chart does indicate that silver will have a very large increase in price in the April-May 2013 time period if that chart proves to be accurate.  It seems to be one of the best out there now. But for now PMs might have some real price softness despite all the reasons for PMs to rise in price

  10. We all need to remember a few things.  Bernanke is not an idiot.  He simply has a different agenda.  He does not report to the American people.  He reports to the BIS and the other central bankers.  When you control the currency you control the country.  The Fed is taking ownership of nearly all the mortgaged real estate in the U.S. for free.  So, when they collapse the system they will be holding hard assets not treasuries.

    Sinclair’s timeline seems about right.  However, Sinclair forgets there are a few more levers for TPTB to pull.

    Bernanke can step on the inflation accelerator any time he wants simply by going to negative interest rates on the $1.4T of excess reserves held by member banks.  
    http://www.research.stlouisfed.org/fred2/series/EXCRESNS  

    Nothing like inflation to grow the GDP number and reduce the effective debt.

    And then there’s the big one…They take the nation to war.  Already, you can hear the war drums beating in the Middle East.

    In conclusion, the dollar remains the best looking girl in an ugly contest. I would keep my eye on the drug cartels. When they stop accepting dollars, we’ll know the end of the dollar is near.

    • I agree that the one who controls a nation’s currency is also the one who controls the country. Even Nathan Meyer Rothschild admits it:
      “Give me control of a nation’s money and I care not who makes the laws.”

      “I care not what puppet is placed on the throne of England to rule the Empire, …The man that controls Britain’s money supply controls the British Empire. And I control the money supply.”

  11. I earn Two Dollars a Day. My Boss gives me $8hr. (plantation script.) 8 x 8= 64. America used to have a Silver oz. Coin. We called it a “Silver Dollar.”  Now it takes $32 (slave coupons) to get an ounce of Silver. 32+32=64. Two Ounces. I make Two Dollars a Day.

    The silver backed dollar has devalued 3200%

    How can anyone say things “might” get bad?   

    • lol Exactly.

    • Idaho Silver, you know, there’s just something weirdly mystical about how numbers pan out between silver, human population and time. If all silver ever recorded to have been mined in history were evenly distributed, each person would have 7.5 ounces; oddly the same as the days in a week.

      Though gross population figures weren’t as accurate as today, in the three centuries prior to the 20th, the average wage for an average day’s labor had evolved to an ounce of silver (5 shillings or 1.25 dollars) per day!   That ounce rationally provided about two day’s essential provisioning.

      The confluence of those factors just facinates me, no end! 

    • Actually, a one dollar silver coin is 90% silver, it weighs 26.73 grams and it’s worth about 25$ in melt value. If you work 8 hours per day, then you actually gain about 2.60$ in pre-1964 silver coins. Unless if you’re talking about your wages in American silver Eagles, then you’re correct.

  12. Bottom line if you do not hold precious metals you are fucked!

  13. Peroverbs 1616
    You make many good points in showing RT as a platform for information or maybe better put disinformation about the world at large but particularly the western world.  I don’t listen to their posts much any more since Max is predictable and their videos are too long to take in daily.  The Iranian apologists are tedious as are the Israeli bashers.  The best thing to know is that there are evil people in the world with Putin right on top, working daily to undermine this country while protecting his cronies and oligarchs.  The best thing to do is data sift as many stories and reports so that you can weed out the dross then lay the best data along side your beliefs in order to make informed decisions.  Regretfully, much of what we see and hear is pretty gloomy. Ann Barnhardt weighed in on RT since she could have taken a position posting with them and made a considerable income. She realized she would be lying down with the propagandist enemies of the US and went rapidly the other direction.

    • “You make many good points in showing RT as a platform for information or maybe better put disinformation about the world at large but particularly the western world.”

      Indeed so.  If the devil looked like Lauren Lyster, a LOT more guys would be signing up for Hell.  LOL!
       

  14. @Proverbs1616

    Proverbs 16:16
    King James Version (KJV)

    16 How much better is it to get wisdom than gold!
    and to get understanding rather to be chosen than silver!

    Thanks for the reminder, for without wisdom and understanding, all our preparations are in vain. We would be plowed under with the foolish who do nothing, if all we do is trust in our own strength. I try and apply that every day. Thanks Again!   

    • Exactly, that is why the True and Living God, the One that has all wisdom, should be our first love. We love God when we love our Brother and Sisters, not with a worldly love, but with a love rooted in Godliness and a saving knowledge of the truth (epignosis). He made it clear for one that those who love me will do all my commandments. Yes, we cannot do it in own strength, this is why He empowers us from upon high to be His Sons and Daughters, His little flock, His Body Politic, His Church, His Government, when we choose Him as our first love.

  15. Hi AGXIIK,

    I agree about the triage, I do the same, but unfortunately, most people out there don’t, and they get sucked into the propaganda-laced data. Thus I go on rants :)

    Hi undeRGRound,

    that’s great, you’re the first person I see who quotes that verse.

    But no need to quote “KJV”, seeing as it is not copyrighted as are the other corrupt Bibles that come from the critical texts :)

    God bless!           

    • Thanks 1616! 

      Does it still convey the correct message?  (KJV)

      ~RGR 

    • AG is right. The KJV for one contains 20,000 plus errors/mistakes of which many were made deliberately and some by mistake. This is not to say that the KJV doesn’t contain the correct message to some extent, but how much dog feces would anyone want to have sprinkled on top of his/her ice cream?

    • Hi undeRGRound,
       
      I believe the KJV is the best translation there is, so yes I’d say it conveys the correct message.
       
      As for silverbullion….. “”???”" ….. no reply, apart from saying that it is by far the best English translation of the Textus Receptus/Majority Greek Texts. The Critical Text crowd that favors the minority Westcott and Hort Greek texts might not like the KJV, and might favour the NIV/ESV/WhateverelseV, but the TR/Majority is still the best text, and the KJV is the best translation of those (and in fact, English Grammar studies have found that the KJV is the most grammatically correct Bible, and also the most readable… its grammatical structure, though employing some older words, was the one which primary school kids had the most ease understanding and reading…. ).
      Καληνυκτα!!!!!!!!

    • And by the way silverbullion,
      I have not much to say about your comments, I’ll let God deal with those comments…

    • @Proverbs1616 With all respect, all you prove with your comments is that you know very little about the history of the Bible, not even to mention the God of the Bible. 

  16. I’ve also heard that the Federal Reserve has a 99 years contract since its creation so when the contract expires, the Federal Reserve won’t be printing any more dollars. I wonder what will actually happen after the end of the contract since most people don’t pay much attention to the Federal Reserve.
     
    Federal Reserve’s 99 years contract:
    http://projectavalon.net/forum4/showthread.php?46193-The-US-FED-Reserve-s-99-Year-Lease-On-America-Ends-EXACTLY-on-12-21-2012—-

    • If that is true, all it would take is 1 executive order to extend it indefinitely… Even after an election loss, a president still has over 2 months to serve. Plenty of time to “fix our wagon”.

    • ALSO in the same thread, see this SK:

       Quote According to Section 4, part 2 of the Federal Reserve Act, 1913, it says of each of the 12 privately owned Federal Reserve Banks:

      To have succession for a period of twenty years from its organization unless it is sooner dissolved by an Act of Congress, or unless its franchise becomes forfeited by some violation of law.

      Since the Federal Reserve Board’s site shows that all 12 original Federal Reserve Banks are still in operation, their 20-year charter must have been extended.
      A 20-year charter was also granted to the First and Second Banks of the United States, and both had their charter terminated. Yes, there was a time when privately owned central banks had time-limited charters, and for good reason, due to the havoc they caused.

      12 U.S.C. § 341 : US Code – Section 341: General enumeration of powers shows:
      Second. To have succession after February 25, 1927, until dissolved by Act of Congress or until forfeiture of franchise for violation of law.

      Again, since the Federal Reserve Board’s site shows that all 12 original Federal Reserve Banks are still in operation, this provision was either changed with some other time limit, or was never changed.

      In fact, it was never changed, and, therefore, their charter doesn’t expire in 2012, and there was never a 99-year charter for the Federal Reserve.

      From: http://fauxcapitalist.com/2012/04/21…xpire-in-2012/ 

      Seems to kill the 99 year lease theory. But the original poster states that 99 years is the maximum time such things can be agreed upon. Someone else said the 99 year theory was raised to divert attention.  

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