Jim Sinclair: Yellen To Get A Shock Of A Lifetime, Will Respond With Hyper QE of $4 Trillion!

bernankeLegendary gold expert Jim Sinclair has sent an email alert to subscribers warning that new Fed Chairwoman Janet Yellen will soon get the shock of a lifetime as the economy collapses in response to her convoluted forward guidance at the March FOMC meeting, resulting in the Fed being forced to kick quantitative easing into hyper stimulation of at least $4 trillion a year!

Sinclair’s full MUST READ alert is below:

From Jim Sinclair:

Chair Yellen has placed herself between the rock of recession and the hard place of playing the hawk. A global recession cannot produce an isolated USA, but rather underscore the heart of the recent US economic figures as a reflection of an insular American economy following the world back into recession, not entirely extremely cold weather related. You might note that China has not had as much of a weather problem yet and is experiencing degrees of contraction in the spectacular rate of growth previously present.


The idea that stimulation, even if only in form but not reality, can be withdrawn without draconian economic results is simply false. Chair Yellen is truly dedicated to full employment and is going to go into shock over the next few short months at the divergence between her economic modeling, the behavioral economic projections and the degree of economic contraction in the US. She will revert to her long standing dovish viewpoint of the mandate of the Federal Reserve and move this hyper stimulation (4 trillion) into a higher gear than before.


Both the stock market and the gold market will reflect this in substantively higher prices. One should never forget that the wheels of the equity markets and gold is liquidity, which represents debt presently and nothing more.


I am presently 13 hours ahead of you in Hong Kong looking out of my window in contemplation of mainland China where nothing has changed. China may look like a free enterprise exercise, but it is far from it. This is a Maoist country that will handle a contraction of its economic activity in a much different way than the hoards of Ivy League analysts populating Wall Street, the City and the Bahnhofstrasse believe. There will be a unified pulling together of the economic function to prevent the dire circumstances the uninformed love to paint China with and have been for the better part of a generation now.


The only asset to survive and appreciate in the period of the great leveling now in progress in the West is Gold. That is understood at a level of POLICY here in the East. Gold is not being bought here in the physical market as an investment decision but rather as a policy decision. It is clearly understood that gold is for saving and not for speculation as the eventual failure of the paper gold market will prove.


As we move out of the Great Leveling 2016 into the Great Reset of 2020 gold will have preserved the buying power of those courageous enough to hold and when possible add to their positions. Companies holding gold free of the tentacles of the West will prosper accordingly.


The developments in Crimea are a well timed stratagem to prevent the adoption of the TITT Treaty that no one wants which has the ability to turn Euroland into a dollar dependent trading area. The Baroness and Mr. O’Sullivan have more to do with ongoing events in the Crimea than the organized and false demonstrations are blamed for.


The US dollar knows this and can be seen to have lost its snap back mojo from below the .80 level of the USDX to the mid .80s. It is even struggling today as the stratagem to bring down the Euro has been trumped by the ongoing move of Putin.


Stay the course in gold and you will benefit mightily.




  1. And gold will never be below 1600 again. 
    Sinclair one year ago this month.

    • In a real market, he would have been correct, but in a grossly manipulated, illegal market that’s allowed to use paper with nothing behind it to crash a commodity, all bets are off and it matters not what is predicted or who has done the predicting. The only prediction that matters is that the petrodollar is going away and taking the status of the US and it’s currency along with it.

    • @SilverSlicker
      The only prediction that mkatter is that it happens in your lifetime, preferably at young age.

  2. Jekel & Hyde? Yellen to Screamin?

  3. Naughty, naughty hands, Jim.  Instead of playing with a keyboard, keep your dirty little palms in your pockets.

  4. Dovish, hawkish whatever. Its all gonna end in tears when the music stops and the lights come on.

  5. $2 trillion is the next logicalstep. $ 4 trillion in its good time.  One step at a time, boiling FIAT frogs in their own juice. Rememeber, QE is for the ultra wealthy and their enhancements, not to benefit any country or its people. When Yellen gets the high sign to QE to $4 trillion she will do so and with vigor I can imagne the reasoning behind this jump in printing and it will not be pretty since the country’s circumstances will go from bad to dire.
    QE is roughly $1.2 trillion at present time when the true QE numbers are disclosed from time to time.  The US tax revenues are weak, spending is sure to increase in this pivotal election year, large increases in spending are slated to help Europe and the deficit is at least $1 triilion and climbing.  25% of the income tax revenues X social security and Medicare goes to the federal debt interest   If Yellen thinks she has an inch to move on rates she is delusional.
     Crazy? Nope
    A delusional sociopath with elements of megalomania.  Yes
    The hubris of these intellectualoids come from, at most, one generation of experience and a cursory review of historical precedence. Every thing else they make up on the fly as circumstances dictate.
    They will find centuries long perspectives are going to give them a mother of a wake up call. But then again, they don’t care.  They are stuck in their delusional paradigm and refuse to see the world for what it is.   Those with immensely longer time lines just smile and let these lesser men and women play their time on the stage, with the full knowledge they can be counted on to make a complete hash of this.  
    Bill Holter speaks to this, aids Jim Sinclair in his prognotications and defeats the arguments that everything is going just fine.  Holter is on Harvey Organ’s channel and his 3 posts of March 25 are worth reading. And Gary North is a POMO pimp idiot
    There is also the matter of the implementation of the Volker Rule. Recent reviews of its impact will be so costly to the larger banks and really devastating to the smaller ones that the final tally of damage cannot be calculated. But it does affect the $300 trillion in derivatives held by these banks, many of which have shifted the damage burden to the tax payer side of the balance sheet, like B of A shifting its $70 trillion in derivatives so that damage would be paid by the FDIC and we tax payers. The Volker rule is a WMD IMO

    • @AGXIIK
      “But it does affect the $300 trillion in derivatives held by these banks, many of which have shifted the damage burden to the tax payer side of the balance sheet, like B of A shifting its $70 trillion in derivatives so that damage would be paid by the FDIC and we tax payers.”
      Bad as that sounds, AG, I submit that it is irrelevant.  There is no frakking way that the US or its tax-payers can fund a loss of that magnitude.  It’s financially impossible.  Hell, we can’t even pay off the $17.5T we owe on the national debt.  One cannot swim with 1,000 lbs. tied to their feet, so there is no difference between 1,000 lbs and 10,000 lbs. in that regard.  Yeah, it really is that simple.  This is an accounting slight of hand trick that just does not matter.
      My preferred accounting slight of hand trick would be to move ALL public debt in the US onto the Fed’s balance sheet and then… END THE FED!  POOF!  Aaannnd, it’s gone!”.  lol

  6. The FED send trillions of $ to Europe during 2010-2011. With the lastest news, now it’s the EU turn to print money (via ECB) and send trillions to US. The big challenge is to convince Germany (that is historically reluctant to such money printing : money printing => Weimar => Nazis => final failure), but Obama succeeded in convincing Hollande (France is now a complete vassal of US, historical role previously insured by UK, but thinks are changing), and now it’s clear that France the middlemen (and others) are starting to succeed to convince Germany (Germany central bank dictate it’s view to ECB). 

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