Legendary gold trader Jim Sinclair sat down to answer readers questions about the ESF and monetization of debt, negative interest rates and the possibility of a cashless society, hyperinflation, derivatives, and of course – gold and silver:
Being prepared for an emergency is something we all need to consider.
The disruption of services (utilities, transportation, commerce, etc.) we depend on can create societal conditions in which we may need to depend on ourselves and our personal resources. Our wellbeing and the wellbeing of our loved ones may depend on our preparedness in the times to come. Precious metals alone won’t be enough to keep us safe from harm.
My e-mail box has been filled up this week with panicked owners of gold.
Some who own gold assets have come to the mindset that even though they know precious metals are manipulated, they fear it will “go on forever”. The same goes even for some of the leaders in the gold community, weak knees abound.
The bottom line is this: once the last once of deliverable gold is received, the game will end.
A few years back while opining of a market/financial collapse from behind bars, Mr. Armstrong was adamant that gold would move to $5,000+ per ounce or higher as a result. He called them cause and effect at the time, and stated that gold would be the safe haven from a dysfunctional system.
What has changed?
This is a very important question in my opinion… what has changed and why did this change immediately take place after they sprung the prison doors open?
Did sunlight give him a change of “heart” (and logic) or was the federal “company mantra” part of the key to his release?
“The business of markets is dead. It is going to remain dead, killed by the demons who claimed publicly to have been doing the work of god.
Now these same perverted players are running for cover themselves to save the trillions they have made…“
As we know so well; over the last two weeks, the chaos in global markets finally reached the shores of Manhattan. Market chaos, that had previously been quite widespread and headlined by China, finally gripped U.S. markets. Now we find out China has exited over $100 billion of U.S. Treasury bonds in just the last two weeks and has indicated it is dumping more through Belgium and elsewhere.
China will clearly no longer fund U.S. budget deficits in the foreseeable future. This leaves us with the misunderstood truth “the Federal Reserve is THE Buyer of last resort.” Worse yet; the Emerging Markets have had to jump the gun and have already started to unload U.S. Treasury’s as their currency falls to reflect lower trade and China’s devaluation of the Yuan.
Apparently, the U.S. has now crossed the Rubicon of sorts and will be forced to “print” deficit spending as a last resort. It is called MONETIZATION and has ALWAYS led to hyperinflation.
Sinclair contends, “This is a pre-crash, and we are not making it through September without the real thing.
The US Plunge Protection Team is losing control of the markets, and Sinclair warns, “They got the dickens scared out of them. They actually backed off providing the funds necessary. . . . That’s your warning. The warning is markets can overrun plunge protection teams. Markets can and will overrun the manipulation of metals and currencies.
The market will overrun the false strength in the US dollar…
The two last men standing will be gold and gold on steroids-silver.”
The credit bubble has been identified, recognized and “pricked”, the equity markets are only a symptom. Do not be fooled by any strength this coming week, it should be used to raise cash.
As September moves in, the September-October timeframe looks like a disaster.
What may start out as circuit breakers being hit now, will ultimately be the plugs yanked out over the next couple of months. I believe a market closure is in our near term future.
Gold and silver will be your ONLY lifeboats…
I was told years ago by a “famous” trader I was nuts regarding backwardation. He told me it didn’t exist on COMEX and LBMA didn’t matter. What possible explanation can be given for the current situation on COMEX (which supposedly “does matter”) where backwardation clearly exists from the August contract all the way out to December?
SOMETHING IS VERY WRONG…