Image: Jonny O'Callaghan

Image: Jonny O’Callaghan

Submitted by Stewart Thomson:

All financial eyes should be focused on the BOJ (Bank of Japan) right now Money managers are calling this week’s BOJ meeting, the most important one in many years.  Key market players expect Governor Kuroda to imitate Ben Bernanke’s actions, and begin buying longer maturity bonds, and more of them, with electronically printed yen.

Kuroda has said he will do “whatever it takes” to get the Japanese inflation rate up to 2%.  Cost push inflation (CPI) will likely be the horrific consequence of doing “whatever it takes”.   Japan is the 3rd largest economy in the world, far larger than Germany, which is number 4.  CPI could devastate Japanese savers.  Worse, because Japan is such a large economy, CPI could spread around the world, and I think it will.
The only good news about CPI is that it could push the gold price well above $2000, and push your gold stocks to new highs.

The legendary Jim Sinclair sent an email alert to subscribers tonight, warning that all hell is about to break loose in the form of currency induced cost push inflation.  Sinclair warns that the dollar index is headed towards .72 before crashing through long term support, gold is headed to $3,500 and beyond, and that the Fed will print to infinity to prevent a collapse of the Eurozone.

Sinclair’s full alert below: