From Jim Sinclair,
This Is It!
Posted On: Tuesday, October 23, 2007, 2:11:00 PM EST
Author: Jim Sinclair
Dear CIGAs,
Many of you have asked what exactly I mean by “This is it,” so here it is in point form:
There is a rampant, serious financial problem with terminal potential and no practical solution hidden just outside of the public’s view (OTC Derivatives).
Because central banks have gotten so out of hand and political which cannot be controlled by investors or the man in the street, we need to adjust our actions so that each person takes on the responsibilities normal to central banks for their own finances.
Everything we buy is getting more expensive and many assets people have, other than gold, are losing value. Because of this credit is not a proper idea regardless of the weak dollar for the majority of people reading this.
Major financial institutions, Internet financial entities and banks operate without transparency where their derivative holdings are concerned. Losses the financial institutions are publishing are considered by media as having extinguished all the risk. I do not believe this. I believe they are still marked to model, only the model is moving slowly towards reality of worthlessness.
There is an acceleration of bankruptcy among financial institutions. This translates to the individual needing to act as their own financial institution by having their share investments in paper form, gold in their close possession with no one in-between and available cash. The individual must be their own bank and central bank as one has failed us and both may.
The savings rate in the US is negative while the expansion of credit is totally over the top.
Business is turning south so the US Federal Budget Deficit will move up exponentially.
The US dollar has become a bombed out and lost battle zone. There is nothing good anyone can say fundamentally about the US dollar.
Non US entities are fed up with financing the US consumer and US Federal activities. This is clear from the recent TIC report, which is now down trending.
Financial privacy is non-existent.
There is a model for exactly what is happening now and that is the Weimar Republic. Name war retributions as OTC derivatives and you begin to see the picture.
The US dollar has now made a clear indication of the final head and shoulders; the massive formation from the absolute top is breaking down.
Number 12 is the item that impacts all of the above because of the dollar’s technical position now beginning to reflect the dire fundamentals. This is it
This is it because you now have to perform not only as your own bank but also as your own central bank. This is it because the US dollar has completed a major head and shoulders bear formation, pulled back to the underside of the neckline and thereafter declining below the major support line drawn from the beginning of the big dollar bull under Chairman Paul Volcker. Volcker made the dollar and Greenspan gave it all back to Asia.
The dollar break below the recent and most important major, major support line drawn from 1980 to now is the fundamental basis which will push Gold to $1650. The US dollar is without any doubt in my mind is going to .7200, followed by .6200.
Ladies and gentlemen, prepare to defend yourselves.
Posted On: Monday, January 21, 2008, 2:32:00 PM EST
Emergency Action Required Immediately To Prevent Public From Joining The Panic Tomorrow
Author: Jim Sinclair
Posted On: Monday, January 21, 2008, 2:32:00 PM EST
Emergency Action Required Immediately To Prevent Public From Joining The Panic Tomorrow
Author: Jim Sinclair
Dear CIGAs,
This is it.
The DJII futures are down over 500 points.
If the Federal Reserve fails to take emergency action before the US opening tomorrow, you will see the DJII open down 1000 points as the public joins this professional panic.
Everything you see happening is contained in the Formula, which will be the catalyst that takes gold again above $887.50 and to $1650.
As long as you have followed my plea to have NO MARGIN on anything gold I see no problems.
If you have margin the rule is never meet a margin call, but sell whatever is needed to meet the call or more, never less.
It is a better wager that the Fed will immediately drop rates by 1 full percentage point.
It is a slam dunk that all Western central banks will cut loose and flood the world with more liquidity than ever seen before.
If central banks fail to cause a torrent of liquidity from their unending check books then $450 trillion of derivatives will take us to the world of Mad Max.
Monetary inflation ALWAYS causes PRICE inflation even without strong business conditions.
Prices of hard and transportable assets rise regardless of business conditions.
All currencies fall and the stronger currency is the laggard in the race to the bottom of the tank.