The legendary Jim Sinclair has sent the following email alert to subscribers this morning, in response to a reader inquiry as to why Sinclair believes the economy would immediately roll over into the Greatest Depression should the Fed stop QE suddenly.

Sinclair states that Like a drug the more you take, the more you need. The more money you create, the more money you must continue to create until it goes to infinity. You go cold turkey on money creation, you unleash the economic wrath of hell in the entire Western world. It all comes down in one great implosion.

His solution? Sinclair states that if he was the Fed Chairman, he would wean the system slowly down while working to recreate the monetary system with required total gold value for government treasuries tied to a world index of total Western World M3.

Sadly, Mr. Sinclair is not the Fed Chairman, rather we have a balding man who is the self-proclaimed greatest expert on the Great Depression, who seemingly has no comprehension on the consequences of monetary counterfeiting.
Full MUST READ alert below:

From Jim Sinclair:

 

My job is to tell it like it is.

 

The economy is a drug addict. The creation of money is history making in a modern economy and money creation acts exactly like a drug. Like a drug the more you take, the more you need. The more money you create, the more money you must continue to create until it goes to infinity. You go cold turkey on money creation, you unleash the economic wrath of hell in the entire Western world. It all comes down in one great implosion.

 

Russia and China would act immediately economically to take full and powerful advantage of your error in application. You have to wean a drug addict off the drug in order to not kill him in recovery.

 

We need a new monetary system complete with a strategic plan of transitions from here and now to there. There is no politician out there that will do this no matter what is promised before the election. That will not change in November.

 

I was short listed in the Nixon Administration for Secretary of the US Treasury. A major article in the New York Times listed me as someone in consideration. I have a plaque from my membership on the Senatorial Economic Advisory Board. If I was in office, I would have done everything to prevent this, regardless of the cost personally.

 

If I was made Chairman of the Federal Reserve in January 2013, I would wean the system slowly down while working to recreate the monetary system with required total gold value for government treasuries tied to a world index of total Western World M3. That is a simplification, but it would be the heart of my plan.

 

Jim, I know this stuff. I am not retreating from conservative principles. I just know that the mishandling of any situation due to dogmatic beliefs can set off a nuclear explosion. I would walk the Western World Financial System back to sobriety, not try to blast it back which would fail miserably.

 

I could do it.

 

Respectfully,
Jim

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  1. This sentence makes it sound like Sinclair is the one that doesn’t have a clue and is a balding man and depression expert.
    “Sadly, Mr. Sinclair is not the Fed Chairman, rather a balding man who is the self-proclaimed greatest expert on the Great Depression, who seemingly has no comprehension on the consequences of monetary counterfeiting.”

    just put “is” at the end of the sentence, or change it altogether.

  2. The bare facts about this 40 year journey into FIAT currency unbacked by anything of value is that   we’ve gotten away with this for 4 decades.  I remember even in the Reagan era the politicians and President railed against deficit spending but overspent to the tune of $100 billion a year.  Since 1981 and the first $1 trillion in national debt,  no one has had the political courage to “Just say No’  The Gingrich Congress did pass a mandate for a balanced budget and it was accomplished for a short time, but not by reduction in spending.  In large part the budget was balanced by funding from Social Security capital and the sale of assets disposed of  by the RTC in 1995.  
    Since then the exponential rise in deficits from $100 billion, $250 billion, $500 billion and now to $1 trillion is simply going to be followed by the first $2 trillion deficit when the fiscal steel curtain of Social Security, Medicare and Obamacare come roaring into full force by 2016 or so. We’ll have another 13 million seniors getting SS and medicare at that time and that demographic bubble is unstoppable.   The mandated governmental expenditures over  the next 25 years comes to $75 trillion.  I’m not great at math but that seems to assure a $3 trillion deficit potentially hitting our shores in just a decade or so.   That is over and above the normal government spending from what I understand.  Something is going to have to give.  Either the government stops spending and adopts a Greek-like austerity program.  That sounds dicey at best.  Or they continue to print and like any good addict, will never stop until some sort of intervention comes to pass. 
    My opinion is that intervention will be very tricky. It’s one thing to take a junkie and thrown them into rehab. It’s another thing to take a country of 310,000,000 people and a government armed with the greatest stockpile of arms in history to STOP what they are doing.  Stop printing?  Questionable at best.

  3. If there is a new system and there will be eventually you need to find Honest People behind it. Any type of system is Vunreable to Dishonest Banksters and Politicians. Sadly that’s the way it is.
    Just changing the system will not change anything unless we hang all the Banksters at least that will be a start. Lol

  4. If it is almost impossible to stop QE infinity, then it is guaranteed that the US dollar will lose a lot more of its values because QE adds more dollars into circulation which causes inflation. I got rid of my US dollars in face value of Canadian dollars when Canadian dollar is worth more than the US dollar. :D

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