Jim Sinclair: Stopping QE Cold Turkey Would Unleash Economic Wrath of Hell

The legendary Jim Sinclair has sent the following email alert to subscribers this morning, in response to a reader inquiry as to why Sinclair believes the economy would immediately roll over into the Greatest Depression should the Fed stop QE suddenly.

Sinclair states that Like a drug the more you take, the more you need. The more money you create, the more money you must continue to create until it goes to infinity. You go cold turkey on money creation, you unleash the economic wrath of hell in the entire Western world. It all comes down in one great implosion.

His solution? Sinclair states that if he was the Fed Chairman, he would wean the system slowly down while working to recreate the monetary system with required total gold value for government treasuries tied to a world index of total Western World M3.

Sadly, Mr. Sinclair is not the Fed Chairman, rather we have a balding man who is the self-proclaimed greatest expert on the Great Depression, who seemingly has no comprehension on the consequences of monetary counterfeiting.
Full MUST READ alert below:

From Jim Sinclair:

 

My job is to tell it like it is.

 

The economy is a drug addict. The creation of money is history making in a modern economy and money creation acts exactly like a drug. Like a drug the more you take, the more you need. The more money you create, the more money you must continue to create until it goes to infinity. You go cold turkey on money creation, you unleash the economic wrath of hell in the entire Western world. It all comes down in one great implosion.

 

Russia and China would act immediately economically to take full and powerful advantage of your error in application. You have to wean a drug addict off the drug in order to not kill him in recovery.

 

We need a new monetary system complete with a strategic plan of transitions from here and now to there. There is no politician out there that will do this no matter what is promised before the election. That will not change in November.

 

I was short listed in the Nixon Administration for Secretary of the US Treasury. A major article in the New York Times listed me as someone in consideration. I have a plaque from my membership on the Senatorial Economic Advisory Board. If I was in office, I would have done everything to prevent this, regardless of the cost personally.

 

If I was made Chairman of the Federal Reserve in January 2013, I would wean the system slowly down while working to recreate the monetary system with required total gold value for government treasuries tied to a world index of total Western World M3. That is a simplification, but it would be the heart of my plan.

 

Jim, I know this stuff. I am not retreating from conservative principles. I just know that the mishandling of any situation due to dogmatic beliefs can set off a nuclear explosion. I would walk the Western World Financial System back to sobriety, not try to blast it back which would fail miserably.

 

I could do it.

 

Respectfully,
Jim

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