The legendary Jim Sinclair has just released an an email alert to subscribers stating that QE3 will be an unexpected announcement over a weekend, and that it could come this weekend!
With today’s collapse in Spanish and Italian bonds and the Euro-zone again on the verge of contagion, Sinclair states not just the Federal Reserve, but ALL OF THE WESTERN WORLD COULD ANNOUNCE MASSIVE QE ON SUNDAY!
From Jim Sinclair:
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
At the rate these ground breaking developments have been rolling out this week, I sure hope something happens. The market has been pretty dead this summer. More people seem to be buying collectible coins than stacking. That is never a good sign…or maybe it is…
I agree that it could be as soon as this weekend or next. The first half of the year is over, but month-end book keeping must be done and the books need to be marked to unicorns or else the whole can kicking program fails. Doing a massive QE this coming week will give them a little time to do the urgent fixups on balance sheets by transferring liabilities off the commercial banks and into central banks and/or sovereigns.
In the land of unicorns, if the magic stops…. well… I guess its called the unicorn apocalypse.
Any such announcement would bring a May 1st type drive-by on silver and gold, but it wouldn’t hold for very long.
Unipocalypse
hmmm do i save what money i’ve got to fix my bike or buy another 10oz fast and hope i can earn enough to fix said bike for it’s mot ect b4 mid september, dammit the timing on these things always sucks!
The news which continues to surface reminds me of 1999-2000 just before the NASDAQ dropped from 5,132 down to below 1,500. The news kept coming that all of the IPO stock shares given to employees was well beyond what the market could support.
Now we continue to get news that Retirement Programs / Pensions are severely underfunded. And that the various countries, states and cities debt is well beyond what the tax base can support.
The headlines and articles seem to be the same except this time just remove NASDAQ and IPO and instead insert Pensions and government debt.
wulf, Dont forget the 1200/oz gold call. I wouldnt plan on QE before the election. These guys seem to spurt these comments out in bunches every few months. Dont buy to flip, by to stack if funds permit.
At the start of the first QE in November 08 silver was approx. $9.00 an ounce. At the start of the announcement of QE 2 in Nov. 10 silver was approx. $27.00 an ounce…Therefore, the 1st QE had a tripling effect on the price of silver. After the announcement of QE 2 silver shot up to nearly $50 in only a couple of months, then was hammered down non stop to where we are today, right back at $27 an ounce; same as when QE 2 started… Any thoughts on what QE3 will do to the price.
Bull Lion – I think you already answered your own question. It doesn’t really matter what QE does to silver as long as the non stop manipulation hammer controls the price.
It’s my observation that the banknote scheme IS the dreaded ‘one world currency’ hidden behind the false ‘division’ of country and currency … names. So, I’m not shocked that with the scheme in it’s final phase of dissolution, this sort of ‘last gasp’ should be attempted.
Anyone with a bit of spare silver/gold, work space and fiat currency ready to set up a new 100% backed transaction currency? Gram-weighted coins in silver and gold to make up a nice spread of value, for products to be priced in once PM’s find an accepted value to settle at.
A true world currency which can’t be counterfeited, because it’s open source. Anyone choses for themselves whether or not to accept a coin as currency. The well-minted ones will have no trouble at all.
The coins, apart from having a fixed weight and purity (not my idea, btw), could have a face side representing truely good things. Just as Justice, Heart, Courage, Honesty, etc. And they’ll be known as such.
“Fabulous new Tablet computer running on Android 7, today for only 210 grams of silver!”, the merchant chanted over the market in his bariton voice. A smartly dressed women has a brief conversation with the merchant regarding the product and pulls out 8 Hearts and a Courage to pay the required price. An extra Honesty gets her a pink leather cover for it.
That will make a new theoretical high for G&S. Keep on Printing!
“Any thoughts on what QE3 will do to the price. “
Thats a question for someone at JPM. But my guess is up as high as it can go in the manipulation battlezone.
This weekend? It just doesn’t feel right. Not 3 days after Bernanke told Congress no. Not while there is no shooting war in the Middle East so it can be blamed on Iran/Syria – Russia/China. Not until the Euro is at least sub-1.20 so it can be said it was done to save Europe. Not until market indices stop levitating so it can be said it was done to save pensions,the economy.
We know that they want the announcement of QE3 to be a “big surprise” for maximum shock and awe effect so doing it now would meet that requirement. I would like to be wrong for once but it just seems we need a bit more before we get there.
Would be interesting… but I doubt it, based on his argument of food prices. The last thing anybody wants is the price of food to skyrocket further with another QE.
As I posted elsewhere on SD just watch the Big Boys and their Silver Short positions. When those magically start to dry up or there’s a major exodus happening within a day or two then you’ll know they’ve been tipped off and a market changing event like QE3 is about to happen.
As long as they continue to pile on 5,000,000 oz (five million) shorts per week then you can rest assured that QE3 is not in the immediate cards. So just to confirm this week they piled on 5,000,000 oz of silver shorts so definitely no QE3 in the next couple of weeks.
I believe QE3 will be used just in time to try and save the Presidents re-election bid. That puts us out to sometime late August or September. They need to time this correctly so the market zips upwards and before massive inflation starts to hit home. Usually it takes a few months between the time a massive QE is released and inflation hits hard. So just do the math. August, Sept or Oct at the latest. So if no QE by early November then get ready for a big deflation rally but like everyone else I’m betting they will do something just in time to make the market and unemployment numbers look good for election day. Ka-Pish!
We shall see?! It will be interesting though. Yet Bernanke appears to be holding off for the elections.
The things I follow with serious intent are the banking runs and bailouts in Spain, probably needing $500-900 billion to cover their troubles, the scarcity of silver and the demands for it, such as Sprott and eastern bank buying, the prices of food stock inflation and impact on world conflict or security and the very high potential of major ME blowups with its affects on the price of oil. Any one of these issues, or all, will impact the world wide financial system. The post a week ago that spoke hubs and nodes that must be functioning and well oiled and how they can break down and fail concerns me since any one of the above issues could be a tipping point. A terrorist attack on the Olympics may be a distraction or one of the tipping points too
“A Doomsday Machine” — David Stockman on Bernanke’s Economy
You had better read this article. I mean the whole article, not just my highlights.
David Stockman gave an interview. He was the head of the Office of
Management and Budget early in Reagan’s term. He quit. He saw what
Reagan’s deficits would do.
In 1977, when the federal deficit reached $54 billion, I predicted a $200 billion federal deficit in 1984. I was too optimistic. It hit $208 billion in 1983. Then it got worse.
After he quit in 1985, Stockman went into private investing.
Now he comes with a message. Let me cite the highlights. I am doing
this, not to save you time — “I just don’t have to read the whole
article!” — but to convey the magnitude of the crisis that lies ahead of
us.
We do not see language like this from someone who has been in high
government office, and who went on to make a lot of money as an
investor. You had better take the following seriously.
I take it very seriously.
* * * * * * * * * * * * *
I don’t think we are at the beginning of the recovery. I think we are
at the end of a disastrous debt supercycle that has gone on for the
last thirty or forty years, really. It started when Nixon defaulted on
our obligations under Bretton Woods and closed the gold window.
Incrementally, year after year since then, we have been going in a
direction of extremely unsound money, of massive borrowing in both the
private and the public sector. We now have an economy that is saturated
with debt: $54 trillion or $53 trillion – 3.5 times the GDP – way off
the charts from where it was for a hundred years prior to the beginning
of this. The idea that somehow all of that debt is irrelevant, as the
Keynesians would tell us, is fundamentally wrong – and the reason why
the economy can’t get up off the mat. . . .
We have a whole generation – the Baby Boom – that’s about ready to
retire, and they have no retirement savings. We have a federal
government that is bankrupt, literally. Its [debt is] $16 trillion and
growing by a trillion a year. Something’s going to give. We can’t pay
for all these entitlements. There won’t be the revenue generation in the
economy to do it. . . .
Austerity is something that happens to you when you’re broke. And
yes, it is painful and spending will go down and unemployment will go up
and incomes will be impaired, but that is a consequence of the excess
debt creation that we’ve had for the last thirty years. So austerity is
what happens when you break the rules. . . .
This market isn’t real. . . .
If the bond ever starts falling in price, they unwind the carry trade. . . .
Then you get a message, “Do not pass go.” Sell your bonds, unwind
your overnight debt, your repo positions. And the system then begins to
contract – exactly what happened in September and October of 2008. Only,
that time it was an unwind to the repo on mortgage-backed securities
and CDOs and so forth. That was a minor trial run for the great unwind
that is going to happen when the Treasury market is finally shattered
with a lack of confidence because, on the margin, no one owns a Treasury
bond: they just rent it on borrowed money. If the price starts falling,
they’ll get out of that trade as fast as they got out of toxic CDOs. . .
.
Well, if they run away from the Treasury, it sends compounding forces
of contagion through the entire financial system. It hits next the MBS
and the mortgage market. The mortgage market then scares the hell out of
people about the housing recovery, which hasn’t happened anyway. And if
there isn’t a housing recovery, middle-class Main-Street confidence
isn’t going to recover, because it is the only asset they have, and for
25 million households it’s under water or close to under water. . . .
The Fed has destroyed the money market. It has destroyed the capital markets. . . . .
And you can’t have capitalism if the capital markets are dead, if the
capital markets are simply a branch office – branch casino – of the
central bank. That’s essentially what we have today. . . .
They are monetary central planners who are attempting to use the
crude instrument of interest-rate pegging and yield-curve manipulation
and essentially buying debt that no one else would buy, in order to keep
this whole system afloat. It’s Ponzi economics. . . .
There are 25 million households in America who couldn’t move if they
wanted to, because their mortgages are under water. They cannot generate
a down payment and the 5% or 6% broker fee that you need to move. So
we’ve got 25 million households immobilized, paralyzed, and worried
every day about when they are going to lose property, because of what
the Fed did. It’s a terrible indictment. . . .
It’s policy. If we don’t do something about the Fed, if we don’t
drive the Bernankes and the Dudleys and the Yellens and the rest of
these lunatic money-printers out of the Federal Reserve and get it under
the control of people who have at least a modicum of sanity, we are
just going to bury everybody deeper.. . .
As a result of that you have a doomsday machine.
As I was saying when the great margin call comes and they start
selling the Treasury bond, they’ll take everything else with it. Real
estate is priced off Treasuries. Mortgaged-backed securities are priced
off Treasuries. Corporates are priced off Treasuries. Junk bonds are
priced off Treasuries. Everything. The stock market will go into a
panic. . . .
The only thing I think you can conclude is preservation is the only
thing you are about as an investor. Forget about yield. Forget about
return. Just keep yourself liquid and preserve your capital, because you
can’t predict the day when, as I say, the great margin call in the sky
comes down.
Duck Vision. Thanks for posting the Stockman interview. I read it as well and take his words to heart. My experience with Stockman goes back to the early 1980′s when he was Reagan’s OMB head. He was a debt and fiscal hawk and hated to see the national debt increasing even the small amounts, relative to dates ramp ups. The entire national debt in 1981 was LESS than the national deficit today and by a good margin. Amazing how far we have sunk in 30 years. Stockman is a firm advocate of being prepared with physical metals and the usual prepper regalia.
You can’t be right all the time… Easy to say ‘not this weekend’, when it is Sunday.
It’ll be interesting to see what happens. Hopefully its stays just where its at for the next couple of weeks or so.. I dont see this being drawn out for anything longer that several weeks. Too much uncertanty in the global markets to suggest otherwise.
From Drudge Report
http://www.ft.com/intl/cms/s/0/7015fcfc-d419-11e1-942c-00144feabdc0.html?ftcamp=published_links%2Frss%2Fworld_us%2Ffeed%2F%2Fproduct#axzz21OoGUvwm
Ed_B I think I’ve bought my cheapest silver for the year, in fact ever. Prices on the boards may well come lower, but premiums I expect to go up proportionately as the paper silver price goes under $25. That game can’t last very long. People between mines and bullion buyers need to make a buck as well.