Jim Sinclair

English language haystack
Post Reply
User avatar
Rasta
Gold Member
Posts: 1421
Joined: 07 Oct 2011, 15:16

Jim Sinclair

Post by Rasta » 09 Nov 2011, 19:52

Although mr. Sinclair explains it differently, in essence he is describing freegold.

There is no return to a FIXED anything, but there is a clear indication of a return to the relationship of floating financial alarms, a marriage between the thesis of Bretton Woods and the floating sins of our Financial Fathers.

The Revitalized and Modernized Federal Reserve Gold Certificate Ratio will be tied to a broad measure of money supply, M3 or another new definition of liquidity.

The gold that the US Treasury has held primarily at the New York Federal Reserve will be valued at market at the time of adoption of this mechanism. Please understand that regardless of the arguments concerning the number of ounces the Federal Reserve/Treasury holds, since it will never be audited, accept what is said as correct.

Now the floating increase or decrease in monetary aggregates will mandate a change in the value of the gold held by the US Treasury.

The US Treasury will never have to buy or sell any gold because vehicles will be created that are immediately traded on exchanges that will speculate on the changes in the broad base monetary aggregate in terms of the gold price. That will serve the needs as the aggregates increase.

This is in fact a public way to view the aggregate change by changing the value of another asset, which is a means of balancing the balance sheet of the USA as it was at the day of adoption.

It is not convertibility. It floats and is not fixed.



Sinclair's Revitalized and Modernized Federal Reserve Gold Certificate Ratio
Eventually there will be an awakening, a balancing of the scales and a bill to be paid, and for that I hold gold - Jim Sinclair


User avatar
Rasta
Gold Member
Posts: 1421
Joined: 07 Oct 2011, 15:16

Re: Sinclair and Freegold

Post by Rasta » 09 Nov 2011, 20:19

And there is a refinement to the earlier thoughts. Mr. Sinclair thought it would be possible for the US treasury to do that, but there is no (political) will. The only option is to use a fallback, another bigger (world reserve) currency.

My conclusions is that a virtual reserve currency will be created that is tradable by central banks only. It will be a super virtual average of all major trading currencies with gold attached by a world sort of M3 against gold, as a price, held in the implied guarantee and/or currency.

Jim’s Mailbox, November 9, 2011, at 2:29 pm
Last edited by Rasta on 10 Nov 2011, 09:05, edited 1 time in total.
Reason: link fixed
Eventually there will be an awakening, a balancing of the scales and a bill to be paid, and for that I hold gold - Jim Sinclair

User avatar
Indiana Jones
Freegold Member
Posts: 4735
Joined: 05 Oct 2011, 16:00
Contact:

Re: Sinclair and Freegold

Post by Indiana Jones » 10 Nov 2011, 01:33

Rasta wrote:And there is a refinement to the earlier thoughts. Mr. Sinclair thought it would be possible for the US treasury to do that, but there is no (political) will. The only option is to use a fallback, another bigger (world reserve) currency.

My conclusions is that a virtual reserve currency will be created that is tradable by central banks only. It will be a super virtual average of all major trading currencies with gold attached by a world sort of M3 against gold, as a price, held in the implied guarantee and/or currency.

Jim’s Mailbox, November 9, 2011, at 10:53 am
Not Found
Sorry, but we were unable able to find any content at this address, please contact our webmaster at jsmineset@gmail.com.


I recently started discussions on the jsmineset forum about the freegold theory (in my bad & broken english) but they at least understood what I was talking about.
I introduced F/OA and fofoa, but there doesn't seem to be that much believe in just a 'theory'. I asked them to contact Jim Sinclair about this theory, so let's wait and see.....

grtz. Indy
Everything that needs to be said has already been said.
But since no one was listening, everything must be said again.

User avatar
Rasta
Gold Member
Posts: 1421
Joined: 07 Oct 2011, 15:16

Re: Sinclair and Freegold

Post by Rasta » 10 Nov 2011, 10:07

How to calculate the price of gold? Note that this model was put up for the Dollar, but Sinclair now beliefs this model will be used for the new world reserve currency, possibly not for the dollar.
Jim Sinclair's Model: The Federal External Debt Equilibrium Gold Price

Image
Eventually there will be an awakening, a balancing of the scales and a bill to be paid, and for that I hold gold - Jim Sinclair

User avatar
Indiana Jones
Freegold Member
Posts: 4735
Joined: 05 Oct 2011, 16:00
Contact:

Die Jagd auf den Goldschatz der Bundesbank

Post by Indiana Jones » 10 Nov 2011, 11:24

Jim Sinclair’s Commentary
The answer is simple. Mostly in the US Fed vault in New York City.



The Hunt for the Treasure of the Bundesbank
Germany is in possession of 3,400 tons of gold, the second-largest gold reserves in the world. But where is the billion-dollar treasure stored? There has been wild speculation about this for years. Financial Times Deutschland went in search of clues.

By Peter Vollmer
Financial Times Deutschland
Monday, November 7, 2011

Anyone who wants to lay his hands on the gold reserves of the Bundesbank — which are currently approximately 3,401 tons with a current market value of $196 billion — faces a problem: Where is the gold of the Bundesbank anyway?

This simple question has been the subject of wild speculation. Critical minds claim that the precious metal was largely in the United States, where it was deposited on the one hand during the Cold War as far away as possile from the "Iron Curtain," and on the other hand also as an ideological pledge of loyalty to the alliance of Germany to the United States.

Supercritical spirits even doubt that the Bundesbank has the gold at all.

Let’s take one thing at a time.

The big gold reserves of the Federal Republic — according to recent data from the the mining lobby World Gold Council the second largest in the world after the U.S., which holds with 8,133 tons, more than twice as much — date from the 1950s. With the economic miracle, West German exports boomed and many nations paid in gold.

http://www.ftd.de/finanzen/maerkte/rohs ... 26227.html
Everything that needs to be said has already been said.
But since no one was listening, everything must be said again.

User avatar
Indiana Jones
Freegold Member
Posts: 4735
Joined: 05 Oct 2011, 16:00
Contact:

Re: Sinclair

Post by Indiana Jones » 10 Nov 2011, 11:29

Jim Sinclair’s Commentary

Yra’s conclusions are sound. Gold will re-enter the system, about that there is no question.
My conclusions is that a virtual reserve currency will be created that is tradable by central banks only. It will be a super virtual average of all major trading currencies with gold attached by a world sort of M3 against gold, as a price, held in the implied guarantee and/or currency.

The bullish outcome on gold as an end game is a cause of the intact gold trend fought so hard from $248 to present day by media MOPE
.



Notes From Underground: When I have Something to Say Sir I Am Going to Say It Now! (Phil Ochs)By Yra

“The news item from the G-20 about Germany not willing to pledge its GOLD reserves to guarantee the EFSF leads me to believe that the use of GOLD to backstop DEBT is on the table. The U.S. has the largest GOLD RESERVES with Germany second and the IMF third. Yes, IMF rules presently prevent the use of its GOLD for collateral but with the G-20 seeking to become more relevant in the current CREDIT CRISIS it would not surprise me if the IMF HEAD Christine Lagarde didn’t find a way to utilize her legal background and circumvent the rules.

If the IMF leveraged it GOLD horde the market may see it as bearish as it may resolve the immediate crisis but ultimately the monetization of the world’s GOLD would lead to a bullish outcome; when and at what price we will let the market tell us? This view may be a fantasy but the German decision to deny Europe its GOLD holdings mean that discussions are taking place. Oh and Italy is also in the Top 10 of GOLD holdings.

When it comes to Europe and finance it is similar to the movie “BANG THE DRUM SLOWLY.” The veteran ball players entice the rookies into a card game called TEGWAR (THE EXCITING GAME WITHOUT ANY RULES). That seems to sum up the international financial system, especially Europe.”

http://yrah53.wordpress.com/2011/11/08/ochs/



SDR (IMF-Special Drawing Rights 2.0)
Last edited by Indiana Jones on 11 Nov 2011, 09:43, edited 1 time in total.
Everything that needs to be said has already been said.
But since no one was listening, everything must be said again.

User avatar
Indiana Jones
Freegold Member
Posts: 4735
Joined: 05 Oct 2011, 16:00
Contact:

Re: Sinclair

Post by Indiana Jones » 11 Nov 2011, 09:42

===========
Dear CIGAs,

There is much in what Yra has outlined tonight.

My take is that the only thing that will actually move Euroland to act is a crisis of full blown proportion. The longer they wait playing their ancient games the closer the full blown crisis is.
===========

Notes From Underground: Bini Smaghi Resigns From ECB Executive Board … What’s It All About?
By Yra

The global markets were on the verge of a failed rally when a news story broke about the resignation of Bini Smaghi. In my mind this is a very significant event as it portends the beginning of a major deal on EFSF funding in the works. WHY? Two weeks ago it appeared that Mr. Berlusconi had castrated President Sarkozy by reneging on an agreement for Mr. Bini Smaghi to resign his ECB position once Mario Draghi assumed the Presidency of the ECB. If SMAGHI retained his seat it meant Italy would occupy two key positions in the ECB and France would have none. Sarkozy supported Draghi only on that basis that the Bini Smaghi seat would go to a Frenchman.

However, Berlusconi did not force the issue and the French were left without a seat on the key policy-making board. Sarkozy was furious and the criticism and pressure increased on the Italians and Berlusconi. Now, after all the acrimony and the pressure on Italian debt, Bini Smaghi is resigning and heading to Harvard. This is Europe and nothing is done without a quid pro quo: THERE HAS TO BE A PAYOFF.

Has a back room agreement been reached to greatly enhance the credit power of the EFSF? What has been promised to Germany to get movement on the increasing the firepower of the ECB as the lender of last resort? Many questions are left unanswered but if you look at the CHARTS the rally in the EURO and risk on indicators all turned when the Smaghi announcement became headline news.

This is an extended weekend because of Veteran’s Day in the U.S. with BOND and CURRENCY markets closed as it is a bank holiday. This is not a conspiratorial view but a tip of the hat to the realities of the home of Machiavelli. The pressure on EUROPE to resolve its current crisis is building as the world worries about contagion. Some plan is in motion so I urge that attention be paid to the risk-on paradigm.
Everything that needs to be said has already been said.
But since no one was listening, everything must be said again.

User avatar
Indiana Jones
Freegold Member
Posts: 4735
Joined: 05 Oct 2011, 16:00
Contact:

Re: Sinclair

Post by Indiana Jones » 14 Nov 2011, 22:11

jsmineset
Attachments
clip_image002_thumb.gif
clip_image002_thumb.gif (60.3 KiB) Viewed 9395 times
clip_image001_thumb1.gif
clip_image001_thumb1.gif (12.42 KiB) Viewed 9395 times
Everything that needs to be said has already been said.
But since no one was listening, everything must be said again.

User avatar
Malcolm
Posts: 32
Joined: 13 Nov 2011, 05:46

Re: Sinclair and Freegold

Post by Malcolm » 15 Nov 2011, 05:49

>The Revitalized and Modernized Federal Reserve Gold Certificate Ratio will be tied to a broad
>measure of money supply, M3 or another new definition of liquidity.

This probably just shows my ignorance about freegold, but it strikes me that the notion that anybody could or should decree a ratio or currency value misses the point. To me, the main issue is 'capital gains' or 'income tax' on gold for species/currency exchanges. Simply avoiding such taxes represents 'freegold'. The logic is pretty simple. Gold's value never changes, so exchanges of gold for specie/currency never have 'gain' or 'loss', regardless the nominal specie/currency unit taking the other side. Potentially, a service tax for providing insurance and/or fraud protection during the transaction would not compromise a country's 'freegold' status.

User avatar
Rasta
Gold Member
Posts: 1421
Joined: 07 Oct 2011, 15:16

Re: Sinclair and Freegold

Post by Rasta » 15 Nov 2011, 08:40

Malcolm wrote:>The Revitalized and Modernized Federal Reserve Gold Certificate Ratio will be tied to a broad
>measure of money supply, M3 or another new definition of liquidity.

This probably just shows my ignorance about freegold, but it strikes me that the notion that anybody could or should decree a ratio or currency value misses the point. To me, the main issue is 'capital gains' or 'income tax' on gold for species/currency exchanges. Simply avoiding such taxes represents 'freegold'. The logic is pretty simple. Gold's value never changes, so exchanges of gold for specie/currency never have 'gain' or 'loss', regardless the nominal specie/currency unit taking the other side. Potentially, a service tax for providing insurance and/or fraud protection during the transaction would not compromise a country's 'freegold' status.
Perhaps it is worth trying to find out more (better understand) what Sinclair meant by that statement. He suggests that the value of liquidity is measures by market value of the gold reserves, but it is the market trading against it through various trading instruments. If the Treasury suggests that gold is $20.000/ounce which should cover the outstanding money supply against the gold reserves, and the market is not buying the gold reserves as unencumbered, then the market will treat the Dollar as overvalued and sell off the dollar to buy gold. There is no-one fixing a value, it is the market who is perceiving the value of the reserves versus liquidity, and trading against that.

You bring up another interesting point: capital gains. A taxing method that most European countries (if not all) do not practice. There is taxing through various other methods, just not due to the increase of your wealth. However, the name freegold rather applies to the fact of gold no longer be tied to money (mainly as store of value component in money), and not so much of being taxed. Having that said, there is that policy difference between Europe and North America. In Europe, gold is left free from a monetary perspective, which implies that it is not taxed either. In North America, gold is tied-in from a monetary perspective, thus taxed as such.

Be not misguided - even the value of gold is never fixed. It is surely more constant over time then any other form of money, but it is anything from constant.
Eventually there will be an awakening, a balancing of the scales and a bill to be paid, and for that I hold gold - Jim Sinclair

Post Reply