The legendary Jim Sinclair sent an email alert to subscribers tonight, stating he believes that the US, EU, Japan, and China are discussing coordinated Central Bank quantitative easing announcements.
Sinclair states that the economic problems are currently so severe and insoluble that only coordinated global easing will successfully kick the proverbial economic can down the road one final time.

Sinclair also repeats his call that gold is going to and through $3,500 an ounce, here and NOW!

From Jim Sinclair:

Monty Guild, a friend of mine for more than forty years, is the most honest and capable man, in my opinion, in money management.

 

I respect Monty’s feelings on many matters, certainly the macro picture. Monty, like I, believe it is possible that coordinated central bank actions in the USA, EU, Japan and China are being discussed. The economic problems are so severe, so international, so global, so entwined, so insoluble and still caused primarily by the greed of 1990 to present finance in the form of OTC derivatives that only coordinated global action can kick this can one more time.

 

Gold is truly going to and through $3500. The gold business is the best business to be in.

 

Respectfully,
Jim

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  1. Jim’s usually pretty good at these predictions.  We know that China’s primed for $1trillion to buffer their 747 wheels up hard landing.  Eurozone, wow!  Who knows how much?  $3 trillion at the low end for Spain, Portugal, Italy and Greece (default loan damage)  There the world’s largest solvency and liquidity problem.
    Japan is kind of a dead man walking country with exports dropping through the floor, a trade deficit and 200% debt to GDP.  Japan has nothing if not their exports.  And Fukushima.  My opinion is that the island is so poisoned with radiation it will cease to exist in 20-30 years.  And then there us–US.   Roll the dice Ben. QE or no QE.   It doesn’t matter. You’ll be gone, replaced by another academic drone.  He or she’ll be wrong too. Rumored $600 billion spread over 6 months. 

    I’ll take ‘Pissing on the campfire for $1,000″  Alex. 
    Answer—-it’ll burn your dick off.
    Question—what happens if your pee is flammable 
    Pee to your heart’s content, Ben.  The results the same.

  2. Newton’s laws of motion: For every action there is an equal and opposite reaction. This would apply in finance as well. I think there would be two reactionary motions. The first reaction to another round of QE would be inflationary, the intended reaction. The second reaction would be the human reaction. The reactionary buying of physical assests to offset the intended reaction. It may be possible to mathematically predict the first reaction, it’s motion a direct result of the amount of energy provided. The secondary reaction once set in motion adds its own energy. The unintended consequences would be impossible to predict.

    • Rockets, there is also another law that is unchangeable. No matter who you are: You reap what you sow! Or present day vernacular “What goes around, comes around!” 

  3. Thorishere, Chris Martenson is one of the handful of folks I know of who’s assessed global circumstances through the lens of exponential currency generation. Though, like Mike Maloney, he merely uses its implication of inevitable collapse as a ‘sales component’ for enhancement of his investment services, it’s enormously important that he broadens recognition and understanding of it, nevertheless. Knowing why currency and debt explode in tandem, makes this ‘co-ordinated QE’ easy to predict as a result, because its necessity is a direct result of mathematical progression underlying the currency scheme’s construction.

  4. If China and Japan are part of the deal, this can can be kicked a bit further up the road still, I suppose.
    Not too much inflation in terms of consumer goods in EU/US, and still good sales for CN/JP.
    Developing counties not taking part will see nice reduction of consumer prices, but more competition for their exports?

  5. Coordinated Central Bank quantitative easing? How can anything be coordinated if the same #&&% family is calling all the shots. The elites have THEIR bank in every country but THREE!!!! Cuba, Iran, and North Korea. There’s no coordination when it comes to the country’s leaders. If there is coordination it is only because of the fricken elites who own the banks in the countries mentioned.

  6. Alex, I’ll take Biblical Suffering for $1,000.  These “smart” men, can they be so caught up in a belief that they are willing to destroy the world’s financial system???  It appears so.  Or are they buying all the gold and silver they also can get their hands on knowing the final outcome?
     
    It is sickening to what level greed and bad thinking will drive someone to make their point.  The countless lives that will be impacted by trusting psychopaths for the betterment of mankind.  The are so corrupt for power and the love of money that they continue to harm how many hard working retirees who were counting on a decent, fair rate of return so their few hard earned dollars could last until they die.  All they wanted was a little dignity to get through life without begging for a handout.  That is the crime at hand.  The destruction of peoples lives over this crazy debt game. 
     
    If we get to the point of biblical suffering I wouldn’t want to be a politician or a bankster supporter.  Society has thrown out almost all principles people used to cling to.  This country was founded on some form of religious freedom and individual liberty.  It has been stripped away and most people now adore or tolerate all the wrong things in life.  Groups of us who have managed to keep our senses see what they are doing.  It is so outragious that too many common men cannot grasp this concept of world domination at the expense of everyone else.  They think we are crazy saying these decent, upstanding people, elected or appointed to higher office for public service are wolves in sheep’s clothing.  They think we have tin foil hats on while we say the system is going to crash.
     
    We have all tried to warn our friends and family and many of them still refuse to listen to the truth.  Some families have even been torn up over political thinking and money management.  All we can do is hang in there and try to pick up some of the pieces when things fall apart.  It may mean people starving in the streets on the extreme end.  We as decent human beings will have to help those we can because that is what separates us from the greedy.  Keep your wits about you as there will be some kind of attack on us eventually.  I don’t think they will stop at us beating their game.  I don’t know, call me suspicious but I think they want it all and will try to take steps to get all of it down to the last nugget.  They know we are out here and I don’t think they want us to tell them — we told you so.  Keep your faith, trust in God and hopefully we will get through the most criminal plot in all of history in one piece.  Take care and Alex the question is What will happen when we follow the current QE to infinity money manage principle.

  7. There’s more problem? We still didn’t solved our problem from the 2008 crisis cause all we did is extend it so that it’ll happen in the future but even worst. Gold won’t be the only one that will go up in price, all commodities will!

  8. The can kicking will stop only when no one buys products.  In the US that is highly unlikely.  There is no way people will give up the use of their electronic gadgets so they can tweet, post and otherwise withdraw from society. 

  9. I could not agree with MaryB more.  While a lot of talking heads on TV discuss the lady-fingers in the world of finance, no one talks about the 100 megaton nuke… aka the quadrillion dollars worth of derivatives financial sewage that is oozing its way through the world’s banking system as we speak.  At some point, the pipes are gonna plug, pressure will build, and we will all get splattered when the pipes burst.  Because of this, there is no amount of money that can successfully paper over this problem.  There simply is not that much money on the planet.
     
    As to kicking the proverbial can via QE… this is an illusion.  All it does is inflate stock prices for a while as the same number of shares absorb a larger amount of money.  Each QE is having a smaller effect that lasts for a shorter time period.  We are approaching the time when QE will be done and the market simply shrugs and goes on about its business as if the QE had not happened.  Bernanke and most other central banksters are absolutely terrified of this moment arriving, so are not as eager to test this via implementing additional QE.  No, it is better to TALK about QE than it is to actually deliver QE.  Talk is cheap and they can imply that they will soon do it multiple times before the financial media catches on to the trick.
     

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