Jim Sinclair

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Rasta
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Re: Jim Sinclair

Post by Rasta » 16 Jan 2013, 21:06

Germany Reacts To The Retiring Treasury Secretary’s Parting Shot

My Dear Friends,

I respectfully disagree with most of the explanations given today on the why of German actions in gold. My understanding is that the causal event of this notification actually came from the actions of the US Exchange Stabilization Fund and the long term plans to strengthen the euro.

I have published a chart from Patrick showing the extreme change in the ratio of gold to fiat currency presently being held in reserve by Euroland.

First you need to understand what the Exchange Stabilization Fund is and is not. It is an account at a major gold bank in the name of the Exchange Stabilization Fund. This fund can legally trade in gold and does. The President of the USA and the Secretary of the US Treasury run this fund. Those two managers by law are permitted to designate another manager if they wish. The fund can trade long or short, borrow or lend anything. Basically this is a an account that can legally do anything it wants whenever it wants in secret as the year end statement can easily be brought to only benign activates by warehousing all the trades.

Their broker is quite an expert in that strategy to wash year-end positions for clients.

What occurred as I am told is an act in Germany in reaction to a parting shot from the retiring Secretary of the US Treasury via the Exchange Stabilization Fund.

When gold traded at $1918 it was setting up for a challenge of a very important round number, $2000. The sell off was a product of long liquidation in an anticipation of $2000 in a fast market. Gold did fall on its own weight into the $1800 area, however the body block at $1800, $1775 and $1750 was a product of the Exchange Stabilization Fund operating as an account of a major Gold Bank. Seeing that, this gold bank went to the short side for the account of its hedge funds and not wholly owned trading arm. This gold bank issued a public statement that the gold market was dead as a doornail, finished and completed.

On the level of central banking there are no secrets. The long term plan for the currency war between the euro and the dollar is a derivation of the Free Gold Thesis. That means a significant change in the percentage of fiat currency versus gold at market value held by Euroland as reserves. This thesis has a target for cooperating Asian central banks for gold holdings at no less than 15% at market value. I question some of the thesis of Free Gold thinkers, but much of it has been in my writing for more than a decade on what the end game recovery will look like.

I am told that the parting shot to break gold’s back by the Exchange Stabilization Fund was considered a direct attack on the Euro strategy for what the end game recovery will look like. The Free Gold thesis requires significantly higher gold prices to work and to elevate the euro back in reserve by choice category.

The German reaction was not political but rather a direct warning that they could demand return of their gold just like DeGaulle of France did in the 60s by making a direct and immediate demand for conversion of the US dollar holdings into Gold.

A major central bank will not insult another major central bank unless it is an act of financial war. It has not come to that yet, but it is not that far away. It is 2015 to 2017 and not 2020.

The reason that gold is relatively firm after the media leak and release on the night of the 14th is that I am not the only person who knows the real story. The price of gold will go to and beyond $3500. Gold will be market to market by the majority, if not all, major central banks. This will balance the balance sheet of the many and major debtor nations and will provide the platform for recovery after unwinding.

Respectfully,
Jim
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


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Rasta
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Re: Jim Sinclair

Post by Rasta » 18 Jan 2013, 09:36

A comment to our Belgium colleagues?

JsMineset: Gold Will Save The Financially Collapsing World Of Debt

Article: A new Gold Standard is being born By Ambrose Evans-Pritchard, Last updated: January 17th, 2013

The following article from the Telegraph was sent to us from Dean Harry Schultz. It was Dean Harry Schultz that gave me my first great opportunity. I worked for him for 11 great years.

I have been outlining this evolution to you for more than a decade. This article touches on it, but does not outline it. This article smells it but does not yet fully appreciate it. This process is behind the ascendancy of the euro despite every bear argument to the settlement currency of choice.

This is happening in the marketplace, and not behind closed doors in smoke filled rooms. Yes, there are closed doors involved in it, but they are free market proponents. I know more about this than even the people who have already adopted a name for it.

Gold is going to and beyond $3500 based entirely on this initiative certain to become completed as a reality. It is already happening right in front of your eyes, but the world is still blind to it.

This is why gold will rise to $3500 and beyond, but never do a 1980 fall again.
This is why silver is a great trading vehicle, but not a great long term holding.
This is why I have invested $32,000,000 in my own approach towards gold.
This is why I sold ALL of my personal material treasures to make this investment when only I would do it.
This is why I took on large debt to accomplish my plan.
This was the basis for my career interview by Forbes in Dec 2000.

No government fund, no gold bank, and no long cycle analyst can stop the progression of gold. The capitalization of the forces behind gold will overcome all these other bearish considerations. I say this because I know this, not because I think this.

I knew gold’s first most important number was $1650 11 years ahead of time. I did not think it. I am telling you now because I know it that gold will go to and beyond $3500. It will be gold that saves a financially collapsing world of debt.
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

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Rasta
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Re: Jim Sinclair

Post by Rasta » 20 Jan 2013, 21:30

The Fulcrum Economic Concept Of 2013-2017
My Dear Friends,

I have been under the weather with the flu for over a week. That actually gave me more time to work on various matters. One is my consideration of whether I should outline the potentials for 2013 in one essay or give you the various specific circumstances/alternatives/decisions that will be the foundation of the market from 2013 to 2017.

I have decided one great tome is a waste of your time because the various concepts given all at once might lead to confusion rather than a clear conclusion. Therefore today I will present to you the fulcrum concept that everything balances on for the economy of 2013 to 2017.

In a technical sense, the Fed can finance 100% of whatever is required via QE under every possible circumstance. The result of meeting every seller of US treasuries with non-economic buying (QE) on a continuous basis would be an ever lower dollar. Any opinion the t Fed cannot do QE to infinity if they determine the need to maintain modest interest rates is simply and utterly wrong.

So what this entire equation for 2013 to 2017 stands on is a simple decision by the Fed: Will they? It is a political question, not an economic question. If it was a purely an economic decision QE would never have been utilized in 2008.

Respectfully,
Jim
Well nothing is new there, we all knew that it is the $IMFS that is behind, and they won't give up the reserve currency status privileges voluntarily. The race to the bottom has been there, but where some currencies have a build-in anchor (by marking their gold reserves to market value), the dollar will remain in free-fall a lot longer because of the reserve status evaporating.
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

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Re: Jim Sinclair

Post by Dirkgold » 20 Jan 2013, 22:34

Not sure if jim's reasoning is correct for the dollar. If it were any other currency it would be correct. The empire that currently controls the world is the us. They make the rules and break them for themselves whenever they want to.
In america there is no division between politics, financial, industrial, etc ...
It's one big machine. Check out cafr.

It's very likely the eu is part of that machine.
Still keeping my gold though.

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Re: Jim Sinclair

Post by Rasta » 23 Jan 2013, 08:22

The Entrance To The Second Phase Of The Gold Market Ascendancy

My Dear Extended Family,

Hyperinflation in the US dollar is considered impossible by some.

Some of this opinion is motivated by the concepts and implications of the reserve currency facing such a challenge. Others deny that historical experiences of hyperinflation has causes, which dismisses the present problems of the US dollar as possible contribution to a hyper-inflationary experience.

The first opinion seems a product of misplaced patriotism rather than hard analysis. This because hyperinflation in a reserve currency, even if reserve by default, has implications to the fiat monetary system that most analysts consider too extreme to even consider. That is the US smack of flag waving over logic.

The second opinion would eliminate the Weimar experience because many see that as a direct product of war reparations Germany had agreed to. The common belief is that it was the war reparations that caused the hyperinflation, which is totally wrong, as presented. It was not the reparations, but the desire and decision to attempt to water the currency down to reduce the reparation costs that lead to the hyperinflation which followed.

The Weimar experience could have been different if the financial decision makers had been willing to suffer the pain of repayment over time and the attendant weight it would have placed on the economy. The decision to avoid the immediate pain of the cost of reparation via debasement of the currency is why the Weimar experience went into runaway hyperinflation.

In my opinion the decision in the Weimar experience was to debase the currency in order to offset reparations which then caused hyperinflation, not the reparations themselves. I believe it is exactly the same in modern times as the US financial decision makers adopted QE when Lehman Brothers failed in order to not face the consequences of that failure which was then the fraudulent mountain of OTC derivatives.

It is reasonable to assume that by midyear of 2013 the US Federal Reserve will have to make a decision in order to keep the US bond market which is US interest rates at the low levels that have been promised until employment has made a sustained recovery. I believe that the recent actions on the Fiscal Cliff and the Debt Ceiling would indicate the US Fed will increase the non-economic purchases (another definition of QE) of whatever amount of treasuries are offered for sale from any entity, sovereign or private.

This will be the entrance to the second phase of the gold market ascendancy. Gold got to $1900 on threatened systemic failure. Gold will go to $3500 and above on pure monetary fiat currency concerns. The actions of the Federal Reserve in order to maintain the extreme health of the US bond market are no different in their implications that Weimar financial moves were to avoid the economic pain of reparations or for that matter Zimbabwe’s constant Federal borrowing.

The Fed’s defense of the US bond market is demanded by the huge pile of original and old OTC derivatives that still haunt the monetary system as specific performance contracts with any financing floating in cyber space. This could drop the US dollar below .7200 to .5600 on the USDX in a short period of time. Because the dollar is a reserve currency by default (which means they have it already and are presently in position by historical acts) the potential snowball effect could ignite an inflation that will later be known as currency induced cost push inflation, which is a derivative of hyperinflation.

I anticipate that this is exactly what will happen propelling gold to new record heights starting no later than midyear this year and running into 2017. I am sure that this operation to keep a lid on gold is based on those that know what herein is outlined. The second phase of the long term bull market in gold should move faster and higher than any previous experience.

Sincerely,
Jim
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

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Re: Jim Sinclair

Post by Indiana Jones » 23 Jan 2013, 11:16

Rasta wrote:The Entrance To The Second Phase Of The Gold Market Ascendancy

My Dear Extended Family,

.-.-.-.-.-.-.-.-.-.-.
The Fed’s defense of the US bond market is demanded by the huge pile of original and old OTC derivatives that still haunt the monetary system as specific performance contracts with any financing floating in cyber space. This could drop the US dollar below .7200 to .5600 on the USDX in a short period of time. Because the dollar is a reserve currency by default (which means they have it already and are presently in position by historical acts) the potential snowball effect could ignite an inflation that will later be known as currency induced cost push inflation, which is a derivative of hyperinflation.
.-.-.-.-.-.-.-.-.-.-.

Sincerely,
Jim
Told you so .... it's those "Weapons of Financial Mass Destruction" that'll hunt currencies down. It's either default or inflate because there is no other way out.
Everything that needs to be said has already been said.
But since no one was listening, everything must be said again.

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Re: Jim Sinclair

Post by Rasta » 06 Feb 2013, 17:06

From yesterday's post:
Jim Sinclair’s Commentary

Do you really believe these people can do anything effective in blunting the trends that are so anti-dollar? They cannot. They will not.

Listen to this, and understand. Listen to this and learn what we are dealing with.

Manipulation of every market on the planet cannot and will not stop what is coming. The US Dollar is going to USDX .0072 and lower. Gold is going to and through $3500. A bull market is coming in all related gold investments.

Stand and defend yourselves. Do nothing. Turn off your quote machine. Check back before the Ides of March.
Image

Someome want to speculate what that means? As I read it, the USDX is currently at .7970 (index is 1, not 100), which means a loss of purchasing power (measured in $) of 99% from here?
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

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Re: Jim Sinclair

Post by Spruitje » 06 Feb 2013, 18:20

Strange, in earlier posts Sinclair allways said: 0.72, I think it's just a mistake.
Study while others are sleeping; work while others are loafing; prepare while others are playing; and dream while others are wishing.
- William Arthur Ward -

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Re: Jim Sinclair

Post by Rasta » 06 Feb 2013, 19:18

Spruitje wrote:Strange, in earlier posts Sinclair allways said: 0.72, I think it's just a mistake.
Rings a bell indeed. Yes it is .72, and the figure mentioned yesterday must be a mistake.
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

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Re: Jim Sinclair

Post by Rasta » 27 Feb 2013, 08:48

KingWorldNewss: Gold Will Now Be Released To The Upside

mp3 interview to follow shortly no doubt.
If you were to take a globe and get yourself a colored pencil and color in each country that has marked their gold to the market, you will understand why, eventually, even those that have manipulated us on the downside will be part and parcel with us on the upside.
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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

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