Jim Sinclair: THE SYSTEM IS TOTALLY BROKEN!!

The legendary Jim Sinclair sent the following missive to email subscribers today, warning that the system is totally broken, that anyone trading with any securities/commodities clearinghouse is risking their own financial life, and those with fancy special tax treatment retirement accounts are sitting ducks‘.
Sinclair recommends PHYSICAL PRECIOUS METALS IN YOUR OWN PERSONAL POSSESSION as the only financial safety from what is coming here and now.

Got PHYZZ??

From Jim Sinclair:

How anyone can put any money in a securities/commodities clearinghouse is beyond me. You risk your financial life to win trading then end up with practically nothing whatsoever.

The system is totally broken. Governments are busted. The securities insurance programs are wildly over extended by the fact that their capitalization cannot guarantee what they are supposed to be guaranteeing

QE invents money out of thin air, and because of that is the only central bank tool and will have to run at full speed to infinity. How the Fed and Treasury utilize QE is totally up to them. They could buy MS or PFG bonds if they wanted to.

Right now in a busted clearinghouse you have no financial relief from anyone because of bankruptcy laws. If you think any industry organization of government regulator is going to give you a cent you are really stupid. You have to assume that if it was not for funds that have to trade commodities, the commodities market volume would be finished. The commodity market of the future has to be guaranteed by the US Treasury and Fed like they guaranteed OTC derivatives, or it will not exist.

You want to see an explosion watch when the clearinghouses in grains implode. Clearinghouse risk exists in shares as well as commodities, so how the hell can you sit back so comfortably, trusting the typical sociopath Wall Streeter to put your money ahead of his/hers?

Those of you with your fancy special tax treatment retirement accounts are sitting ducks dependent on your clearing house broker and/or the will of the government.

Gold is the only asset on the planet without a liability attached to it. Gold is going to and through $3500 without any question in my mind.

9 tries to break $1525 have now failed. The manipulators are put of aces. The proof was a recent email from gold’s father of $1100 calling me a fool three days in a row.

If you own gold in futures or ETFs (they own their gold in paper) take delivery or end up with absolutely nothing whatsoever.

Regards,
Jim
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Comments

  1. Nobody here with fancy special tax treatment retirement account, that I know of.

  2. Not any more Silverdog—My IRA is in phyzz.  Adios Fidelity.

  3. Congrats, AG, on getting loose from Fido.  Once they get their teeth sunk into our money, it can be the devil’s own work to get them loose again.  I went through that back in 2005.  I did have to give them credit for the amazing diversity of comments they had regarding me removing MY money from their care.

    Yeah, I’m not too sure what constitutes “fancy special tax treatment” either. Sure, I have a few IRAs but their tax treatment is pretty straightforward.  I get a tax deduction up front for all but the Roth and then I get to pay FULL income tax rates on all of the cap gains that accrue over the years.  Yeah, come to think of it, that does make me feel pretty darned special.  :-/

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