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[bob ford <bobford79 AT yahoo.com>]

First, please understand that Jim Sinclair is a long term "gold bug".  His 
viewpoint is contraian, generally, to mainstream market thinkers.  But, a lot 
of smart people listen to him.  And, he is one of the people to first start 
shouting about the mess we are in , now.  he did so long before recent 
events.  

However, since he is a 'gold bug', he hasn't really believed in the dollar 
since 1974.  "Even a stopped clock is right , twice a day".  With that 
information about him, take his prediction as you please.  Incidentally, he 
is a commodities and precious metals trader, so some of his outlook is for 
those people.  I am just posting his commentary his opinion of the general 
outlook on  the near future. ....bobford

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We are apt to shut our eyes against a painful truth... For my part, I am 
willing to know the whole truth; to know the worst; and to provide for it. 
--Patrick Henry
 
 
  
 Posted On: Wednesday, October 15, 2008, 9:28:00 PM EST



     Author: Jim Sinclair

  
 
 Dear Friends,

There is one simple but extremely dangerous error being made by the man who 
is the world's greatest expert on the time period and economics of the Great 
Depression, Dr. Bernanke, Chairman of the Federal Reserve.

The Chairman is an expert on the history and consequences of that period. He 
is being guided by this deep knowledge, yet is totally oblivious to the 
consequences of the alternative actions he is taking to not make the same 
errors as the 30s. This is all in his attempt to prevent his president from 
going down in history along with other failed economic leaders.

The unprecedented creation of infinite dollars for the purpose of flooding 
the world's entire financial system is causing the birth an inflation of 
types unknown in a modern economy.

The test case for the CONSEQUENCES of present united central bank actions is 
the history of the Weimar Republic, but this time it is on a planetary basis.

CONSEQUENCES cannot be avoided by any means. They are economic equal and 
opposing forces. That is simple fact.

In an attempt to avoid what the Chairman see as consequences of incorrect 
central bank action in the 1929 - 1933 period, he is creating new and 
infinitely more dangerous, longer lasting, society changing, politically 
provocative new sets of unexpected economic CONSEQUENCES.

The only number that might compare to the nominal value of all OTC 
derivatives is a count of all the individual plankton in all the oceans of 
the world and then only maybe.

The world will never be the same because of the greed of these 29 year olds 
and the old goat bosses who sat at the long desk of the board of directors 
while looking the other way.

 

Upcoming events:

As a result of "This is it and It is NOW":

US exchanges will be closed. There is a chance all world exchanges will close 
down. Only gold and currencies which are planetary markets will continue to 
trade. 
Retirement programs will not pay off. 
Medicare and Medicaid will at best buy you a bandage or pay for 1/4 of a 
visit to a free clinic. 
Social security, due to the massive upcoming inflation, will provide no 
security for any society. 
Money Market Funds will not pay off. 
A CD is a gift, but not to you. 
Unified central bank action has a short life. 
Central banks will soon revert to the strategy of everyone for themselves. 
401Ks not self directed are headed for the toilet forever. 
Exchange Traded Funds will not return the assets upon which it is based to 
you. 
Sliver will demonstrate the fact that it is more industrial a metal than 
precious. 
Silver is not a currency because it is simply too HEAVY to settle debts or to 
be universally fungible. 
Silver performs best when there is reasonable industrial demand and distrust 
of currency. When this happens rounding up the gang and their money will have 
a lot to do with which party is elected. 
Credit card companies are going to have to be bailed out. 
GE Capital is a nuclear capable entity that has the capacity to take down the 
good old toaster and refrigerator manufacturer - SIGMA ZERO. 
GE Capital is a huge OTC derivative dealer but somehow I do not recall that 
fact being discussed. 
Gold is the only Honest Money because it has no liability attached to it. 
Gold coins are the best way to own gold for the average investor. 
When you select a junior gold, I would look for the highest quality, most 
bashed, highest short positioned, with real assets and real people devoid of 
pussy management. The situation is best if it is based in another country 
than the country you live in while doing business in a third and trading in 
multiple areas. The benefit is obvious. 
Nobody ever did or will ever trade items as insurance. That is a form of 
madness. 
At $1650 I will take my leave, having been with you to the point I promised. 
The only place you will find me then is at my place of business on the ground 
or the web.
There is no question that gold will trade at or above $1650 by January 14th, 
2011.

 

 
  Thomas Jefferson, the author of America’s Declaration of Independence, 
understood the threat posed by central banks:

"The central bank is an institution of the most deadly hostility existing 
against the Principles and form of our Constitution… Bankers are more 
dangerous than standing armies… [and] If the American People allow private 
banks to control the issuance of their currency, first by inflation and then 
by deflation, the banks and corporations that will grow up around them will 
deprive the People of all their Property until their Children will wake up 
homeless on the continent their Fathers conquered."


http://www.jsmineset.com/