Legendary gold trader Jim Sinclair sent subscribers a shocking and MUST READ email alert last night regarding the possibility that the dollar as reserve currency will enter the initial stages of hyperinflation by mid-year, and the effects the debasement of the dollar will have on gold.
Sinclair states 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 and that 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.
Sinclair states that the effects of the Fed’s increased pace of quantitative easing will lead to severe cost push inflation, a derivative of hyperinflation running from mid 2013 through 2017, and that 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.
Jim Sinclair’s full MUST READ alert on the imminent cost-push inflation/hyperinflation of the US dollar due to QE∞ is below:
From Jim Sinclair:
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
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Jim is probably very right that the inflation will be “cost push” when viewed by the average retarded economist. In fact, it might be possible that people of the western world start to realize that fiat currency is not intrinsically valuable like precious metals which require FINITE energy to produce FINITE amounts. A world of infinite fiat cannot turbocharge a world of FINITE food, water, energy, and people.
Cheers to economic Armageddon, bitches!
@saddle
Yep! For all his insider … ‘insights’ … Mr. Sinclaire ultimately promotes perpetuation of the banknote scheme. This crap of ‘gold backing’ is a ruse to buy yet more time. It’s nothing more than a single step in retreat to re-evaluate ‘what can be done to rectify this glitch’.
The banking bozos actually still believe that their financial ‘rocket science’ can make ‘flying money’ viable in spite of an UNBROKEN track record of utter failure over eight damned centuries of delusional determination to try.
Max says March. Jim says aprox May – July. In 2013 the EVENT will start. Are we ready?
Dont Forget Celente: April. Personal I could see it pushed to as far as October 2013 then boom! I say about 99% are oblivous. I recently spoke to a family member who trades in Morgan Stanley and he believes things will improve if US cut its Military spending. I said thats not going to happen. Like Celente says have your 3 Gs: Gold Guns and a get away plan.
I’m thinking that Bernanke still has enough slight of hand tricks he can pull to put this off until at least 2014. I don’t see this happening before 2014 and possibly as late as 2015. Probably not any later than that, though.
As to hyper-inflation, my grasp of the concept is that the currency is first terribly diluted via over-printing and then finished off via a complete loss of confidence in it by the citizens. This is the point when bales of money are needed to buy even a loaf of bread. One could also use a 90% silver dime to buy a few loaves of bread… IF they had one, of course. I would bet that most on here do have such coins in their possession and will manage high and even hyper inflation a lot better than those who do not.
@ Ed_B If Bernanke is lucky it wont blow up in his face before he gets a chance to abandon ship. I could see your scenario. They have pushed it this far so far. Why not one more year? I personally would love this. The second year of a US presidents term is always the worst statistically from what I’ve read. I still think a crisis will hit this fall 2013(perhaps a debt downgrade). Without question in my mind. But we wont feel the effects (inflation wise) until 6 months later. October 2013 + 6 months puts us in April 2014 right on time for a new debt collection crisis. Bernanke bails in January 2014. Then the next crisis will fall on the new Fed Chairmans lap just how Greenspan did Bernanke dirty. By late 2014 full blown Hyperinflation. Like John Williams suggested. 2015 probably worst year of our lives. 2016 new currency new president or should I say Dictator. The US constitution will be confetti by then. Obama will justify tearing it apart due to a crisis just like Abraham Lincoln did during the civil war. That’s why they keep comparing the two in the media.
I’ll put on my wonk hat for a second. Jim may be right on hyperinflation but if and when it occurs it will be world wide, not localized in the US. Our QE printing is not the worst of the breed. Japan is worse off.
Printing to devalue currency in order to promote exports just beggars the world’s economies and places the people in extreme jeopardy of food shortages and increasing destruction of the middle class. It does not bouy up any economy.
At the present time we are 110% Debt to GDP. The Reinhard-Rogoff equation shows clearly that any country in which the Sovereign Debt to GDP exceeds 90% cannot grow more than 2% a year Our lack of growth shows how accurate this is. Our GDP has not grown beyond 1.8% since 2006. Of that growth, the government accounted for 80% in nominal GDP increase. In reality, inflation at 9.6% means the economy is moving backwards by at least 7% in real dollar terms. This is felt mosts severely at the mid and low income levels with the resulting 10% decline in wage levels over the last 4 years.
The local, state and national governments are now $6.5 trillion dollars, 43% of the GDP. This absorbs capital, crowds out business development and growth and does nothing more than transfer payments to the have nots, thus preventing riots in the streets of the USA. Other countries going through this are seeing real civil unrest.
The $6 trillion in deficits over the last 5 years was the stopgap means to prevent utter chaos. It only bought time. Inflation is growing far faster than the GDP but more importantly, it’s growing faster than the deficit spending designed to stave off the damage to the middle class. 2013 may be the year when our new deficit spending equals inflation. The Fed has said QEfinity will continue until unemployment reaches 5.5%. That’s new number touted as the benchmark that will stop the Fed printing. It’s used because no one in government thinks we will see 5.5% unemployment. As that annoying equation wreaks its damage, job growth is stifled due to debt and deficits, preventing any reduction in the unemployment rate. It also kills job growth.
The economy is losing jobs at the rate of 80,000 net per month (or higher) despite the fact that new job growth is 75-80% government jobs. The government cannot hire its way to prosperity anymore that we can print FIAT to create prosperity.
There is nothing about the 7.8% unemployment rate that is reality. BLS stats are unreal. If the BLS manufactured 5.5% by some human hedonic employment adjustment the Fed will never stop printing. They are not printing to stimulate growth. They print to stave off disaster. If they stopped printing, the worst of all worlds would happen. Debt default and a likely termination of most transfer payments to welfare, military, the 20,000,000 government employees, the retirees would occur immediately and with devastation results.
How hyperinflation factors into this is beyond my scope of understanding. It just seems logical that excess production of FIAT will end badly. There is one factor that is holding down serious inflation, as if 10% rates are not serious IMO. That factor is the velocity of money. It is at a century long low. There’s about $9 trillion in US FIAT now held in personal, corporate, hedge fund, bank and pension plan funds. Banks have a $2 trillion spread between loans and deposits, giving these Mega banks $2 trillion to play with in the FIAT casino. These funds are 100% of the private sector GPD and if unleashed, these funds would start chasing yield in the World of ZIRP like a flash flood scouring a channel through the dry lands. Some event, such as food or water shortages could be a tipping point to kick off inflation. Maybe not so much in this country but when countries without adequate food resources start seeing their people go hungry and enter starvation, this might trip the purchase power of this $9 trillion as it seeks safety as well as a return on investment. Any investment that is purchaseable and not tied down with ropes or red hot will be scooped up, much like the Chinese spending about $1 trillion of their reserves in their present global buying spree. 10% of California homes are being bought by Chinese. They are buying our homes, land and commodity firms at a very rapid rate. They know that if they bought their own Chinese assets, they would produce painful inflation so they are on a buying quest worldwide, acquiring assets on the cheap, precious metals included.
Inflation fits into these all these factors but its rate and when it starts are unknowable. It takes some extreme events to kick off world wide hyperinflation. A fast war between China and Japan: Another year of hard drought: Another Arab Spring. But it is not for the lack of trying by central banks and governments to get to that end. Inflation works to that end so they are working overtime to bring this about. What they don’t know is this Pandora’s Box of FIAT debasement will cripple the central and TBTF banks as well. Inflation is the great leveler. Hyperinflation is absolutely destructive There is no place to hide—except in precious metals.
@AGXIIK
You might appreciate this variation on the ‘normal’ charting of ‘debt-to-GDP’ …
http://greshams-law.com/2013/01/23/critical-chart-global-sovereign-debt/
Has anyone thought we may have this backwards?
Isn’t the play book for the bankers to create booms and busts in the economy through credit cycles?
Have we not experienced an extended period of low interest rates, providing cheap funding to inflate the economy out of the past recession?
The banks are stocking up record cash reserves, as Agxiix mentioned over $2 trillion worth. If we stop printing and let rates skyrocket we will experience horrible deflation as no one has access to capital anymore. As the price of commodities and real estate crash, the banks can use the $2 trillion in capital the have conveniently built up to buy all these assets for pennies on the dollar. At which point they can turn around and reinflate the economy again to make obscene profits.
Isn’t this their standard OP? Why would it be any different this time? Are we just too far down the road that they can’t pull the plug on printing because it will cause disaster? I understand it will cripple the US economy (maybe the world) but the banks don’t care about us. They care about themselves. We need to stop thinking about this in terms of what is best for the US govt., and focus on what is best for the banks.
We already have 9% inflation, real estate is starting to rebound (even if it is based on purchases by the Chinese and Wall Street) and the Dow is at 2007 highs again. Why wouldn’t they just run things up a little more and then sell everything off before pulling the plug on the money press and buying everything back after the collapse?
“Isn’t the play book for the bankers to create booms and busts in the economy through credit cycles?”
Yes, that has exactly been the play book and they always blame it on “the business cycle” and never on “the crooked bankster looting and pillaging cycle”, which would be WAY more accurate.
“Have we not experienced an extended period of low interest rates, providing cheap funding to inflate the economy out of the past recession?”
We have but the cheap money out there has not created a Roaring 20s style boom in business activity, so there is nothing to plunder at the moment. As AG pointed out, money velocity through the US economy is terribly low now and has been since 2008. This would need to increase considerably before a new pillage cycle can be entered.
“As the price of commodities and real estate crash, the banks can use the $2 trillion in capital the have conveniently built up to buy all these assets for pennies on the dollar. At which point they can turn around and reinflate the economy again to make obscene profits.”
That would be consistent with the bankster cycle of looting and pillaging. They might also realize that it is fiat currency that is in a bubble this time and that the bubble will pop and either lead to a very large devaluation or even a collapse of the currency itself. Because of this, banks are buying gold and lots of it. They are also starting to buy silver, such as the recent almost $800M buy of HSBC. Central banks are buying gold faster now than at any time in the past 50 years, according to some articles out there. I am thinking that they are doing this for a very good reason. China is buying a LOT of gold and now silver as well. They also produce a lot of both metals, none of which is exported. The Chinese do not do much of anything without having very good reasons for doing them. Backing their currency, at least in part, with gold and perhaps with silver as well, seems to me to be the only reason why they would want such huge quantities on hand. Something wicked this way comes… and don’t think for a second that the central bankers of the world don’t know exactly what it is and what they need to do to prepare for it.
“Are we just too far down the road that they can’t pull the plug on printing because it will cause disaster?”
I don’t know… maybe. Perhaps they miscalculated their latest loot and pillage and are only now becoming aware of the fact that they have gone too far with it and worldwide financial destruction is imminent… whatever “imminent” means in this context.
“Why wouldn’t they just run things up a little more and then sell everything off before pulling the plug on the money press and buying everything back after the collapse?”
Perhaps that is exactly what they are doing. It gets tricky, though, when one is buying and selling in such massive amounts. It’s very hard to keep things quiet these days and very large buy and sell volumes are noticed very quickly. This trickiness is also exacerbated by the fact that the US dollar may not survive. If it were to collapse, then all of their ill-gotten gains in dollars would collapse too. This whole scenario is likely to embroil the entire world and not just the US or the EU. They may not be able to hide out in a safe location and then emerge after all their crap has come to fruition. My guess is that, as AG suggests, they will hide their wealth in gold until after the collapse and then emerge in their white knight costumes to “save the world from utter destruction”. (cough, gag)
Perhaps this isn’t the year to “Sell in May and go away”????
Probably not but it very well could be the year in which to just go away! :-O
We will all be rewarded soon….Those that stood the course and bought on the dips will do well. Those that let the banks squeeze them out will be sorry.
Now, let me explain what REALLY sparked the Weimer Hyper-Inflation … This was the point where bankers used the post-war circumstances to accomplish their coup-de-gras on self-extinguishing Real Bill credit conveyance (aka ’90 day Acceptances’) in Europe (the same was carried out in America after the SECOND ‘world war’, though I had personal experience with them as a purchasing agent, still by the early 1980s). In that period, banks stopped clearing Real Bills and coerced near exclusive use of Loan at Interest in their place.
The bankers simply refused to hold German Real Bills at ANY realistically workable discount and FORCED German producers to pay for all their supplies immediately via interest burdened Loan of currency. The German government, in an effort to offset the drain of circulation caused by the losses to interest service, printed the difference. Of course, that currency (Marks) carried its OWN interest costs, bourn by government in Bonds. While that circumvented annoying tax increases, it still had the well established ‘invisible’ effect of raising cost of living. As My Grampop used to say … ‘Six to one, a half-dozen to another’ … so the hyper-inflation’s inexorable exponential advance had its genesis.
Professor Antal Fekete has written FAR more extensively on the subject and I would urge serious ‘truth seekers’ to find his treatise and study it.
I have been following Jim Sinclair for a long time. I do not always understand everything he is talking about. However, I have a tendency to believe what he says. I know there are those that minimize what he has to say and call Mr Sinclair old school etc. And, the timing on hyper is really just an educated guess. There are many who have predicted 2013/2014 to be the time when it starts. I believe firmly that food is going to be the first noticeable item that goes up that the masses freak out about and I believe that this will certainly start this summer. Food price increases are what cause riots in third world country’s. The only thing we can do is try and get out of debt and keep improving our fighting position. We are in a lull right now. I will try and use the time wizely. I will also try and source some more gold coins. Jim says that silver is for trading. Gold is for long term wealth preservation.
Food increases have hit. I will pick a simple staple, cornbread mix. Last year 3/$1 today’s grocery ad was “on sale” 2/$1
BUT even the Sinclairs and Rogers, etc. all say Silver has a bigger upside in the run up phase.
I would look a Silver harder than Gold. Many here are looking to a GSR range of about 16:1 or lower
(I predict under 9:1, very likely the ultimate range) then trading Silver for Gold for that
“Long-Term Wealth Preservation”. Silver does trade at a higher upside ratio on up days, nearly every up day.
At least 2.25:1 average, or higher. When the SHTF occurs, Silver will outshine Gold greatly.
Get some education on when to swap over… I’m still learning that one myself.
PS: Silver may actually go HIGHER than Gold.
2 good reasons, if you believe Bix Weir, for one of the reasons.
Last Straw I think you are on to something. The word that comes to mind is “SUCKER”
Dow near record highs, property prices up 20% (hyperinflation destroys property value), bonds in a ZIRP bubble that will crush prices when yields jump; these 3 asset classes are sucking in the illiterate and greedy of all nationalities. Equities are built on sponge cake. Real estate has perpetual counterparty risk factors. $60 trillion in world wide debt yielding 1-2% is a train wreck looking for a bridge out.
Interesting take. If their plan is to initiate crippling deflation as opposed to Weimar-style hyperinflation, what are the implications for PM stackers?
The implications for PM stackers is an interesting question. The 1930s deflationary depression was a time when anyone who had money could buy virtually anything they needed. Money was scarce and hard to come by. Virtually everything declined in price during this time because there was a big shortage of money available. Food, for example, declined in price faster than gold and silver, which were money at the time, so having money was extremely important and useful in spite of the deflation. Will it be the opposite with inflation? Maybe. On the other hand, both gold and silver preserve value, so should retain purchasing power when paper money does not, allowing us to buy more with our metals than might otherwise be possible. Perhaps all we need to remember is that gold and silver retain purchasing power and have for over 4,000 years, come what may.
The question of inflation and deflation are interesting in light of the fact that current economists, like Bernanke, do not seem able to recognize either one when they see it. Bernanke sees the air coming out of a housing bubble and goes nuts, screaming about deflation. A bubble SHOULD be deflated. That is the way that a market recognizes a bubble and seeks to adjust prices so that there is no bubble. Also, Bernanke does not see food and energy prices as valid measurements of inflation, so no matter how much they rise in price, they do not affect his inflation calculations. Unfortunately, the rest of us do not live on paper. We live in the REAL world where the costs of food and fuel matter greatly. These are not wants but NEEDS and we MUST buy them in order to live. This is why people like John Williams at Shadow Government Statistics are calculating inflation via the pre-1995 government method that does include food and fuel. When he did that, he calculated inflation to be 9.4% in 2012. At the same time, Bernanke is calculating inflation as 2.5%. Those of us who shop for the things that we need know that prices are not up by only 2-3% but by maybe 8-10%. My wife and I have been buying extra food for about 2 years now and have built up a respectable food cache. Even if no huge disaster comes down the pike, having this gives us peace of mind about the future and also reduces our cost of living. Buying extra staples, like rice, beans, flour, cooking oil, and sugar, is good and everyone should have at least a few months worth of them to get them through most any man-made or natural disasters that may come along. Canned and dried foods in addition to these are good too.
Excellent, Fekete!
Well when Tide 150oz bottles, a Giffen Good, rises above 20.00 USD, that is when it starts!
Check your police blotters. Tide made the most frequently shoplifted report in 2012. Tide trades for 20.00 rocks of crack and meth.
Got Tide?
Keep Washing!
That Gresham chart is enough to kill your buzz Pat. We are probably at 5.8 to 1 now given the expected revenues of $2.8 trillion and a debt of $16.5 trillion. Our interest was $400 billion in 2012 with 2.5% rate. 5% would be $800 billion and anything after that is a complete FUBAR.
We haven’t seen hyperinflation in an electronic currency in the history of the world. How can we have hyperinflation when newly created money (debt) doesn’t “escape” into the pockets of 99.99% of us?
I’m not saying these predictions are wrong. I just don’t see how it’s possible at this point.
Hyperinflation is not too much money or not enough money to spend. Hyperinflation is a loss of confidence in the currency (ie, people immediately exchange the currency for something real).
If everyone everywhere decided to spend whatever cash currency they have in their possession all at once, that would lead to hyperinflation. Money’s component as a store of value is what prevents inflationary episodes from happening. Imagine, if everyone believed that whatever cash that they hold would lose 50% of purchasing power by the end of the year, they would more than likely go ahead and spend it now instead of when 50% of the value is lost. That is the nature of hyperinflation.
Right now, people are being lied to and are told that there is no inflation; therefore, they keep their money in the bank, believing that it will still be worth the same value with passing time. People are afraid to invest, and so they keep cash instead (thinking cash is a proper store of value). People also think Silver and Gold are too risky and too volatile to invest in, because that is what the mainstream media tells them. Most people are too preoccupied with daily living to study history, and to learn how to protect themselves from this kind of financial storm.
This is the first time in the history of the world that all national currencies throughout the entire world are purely debt-based fiat money. What is happening now has not occurred in history before. That alone should make people question everything. In the present crisis, people will not be able to depend on others for protection. Ultimately, everyone will have to learn to depend on themselves.
The other component necessary for hyperinflation is a competing currency. In Zimbabwe the locals switched to dollars when their native gov’t currency failed. But, what is there for people to use instead of dollars? In practicality, nothing. Gold and silver aren’t mainstream. Euros? Pesos? I don’t think so. This means that the dollar will be very resistant to hyperinflation. Robust inflation is a different mechanism. That we will see.
Good point on the competing currency, U-Dog, but that seems more a matter of necessity and not a matter of hyperinflation per se. Was there a competing currency in Weimar Germany? I don’t recall that they had one but may have used other European currencies that still retained value. People in Zimbabwe also used euros as well as US dollars. These days, people in Zimbabwe are scratching for gold flakes to support themselves. They need 0.3 grams per day in order to live. There is an interesting documentary on this on YouTube here:
Hope that this link works. This is the 1st time I have posted one…
Anyway, this is a first class lesson in what happens when government monetary policy blows up and a country utterly fails its citizens. Zimbabwe was once called Rhodesia. At that time it was also referred to as “the bread basket of Africa”, thanks to its very productive farmers, and was a major exporter of food. This is no longer true today. I don’t know how many people have either died or left Zimbabwe for other countries but the numbers must be considerable.
I for one and hate to say it. But Let It Crash maybe the darn Sheepee will wake up then. Just got two new recruits Stacking Silver today. One lady ask me where she could buy $50000 Physical Silver and I bent over backwards and put her on to a few contacts. even you Doc.
Jim Sinclair has been coming out with a lot of positive stuff along with the other Gurus lately that benefits us, sure hope their correct as we have been patiently waiting a long time. In the meantime, I’ll Keep Stacking
Oh come on, this is crap. The US is fine, Gold and Silver will go up, but through the steady rise of price inflation through the natural process of Fiat money creation. Hence the 2% that every nation on earth thinks to be acceptable.
In Macro economics, everything is tied together, if one nation stops buying, then another stops selling, increasing the money supply does nothing, you can only export your currency for so long before another country stops buying. A reserve currency is worthless if it doesn’t retain its value. The Bond market is the next big collapse, then America and the rest of the world will start to look at the BRICS and hope that their growth retains a high GDP and they still trust the Dollar. Doesn’t look good does it, Mexico has masses of reserves of silver, they will sell.
So the Fed will keep putting its foot on the neck of Silver and Gold, obfuscating the fact that the money supply has temporarily increased via QE.
If there is a shortage of Silver, great. I won’t be selling. Unless I can swap it on favourable terms for another asset such as Gold or Property.
The Germans are not worried about America not having their Gold, its all about the new banking rules for Basel III. The only countries likely to make a run on America for Gold are the Europeans as they put all their gold into Central Banks of their own design. Except Britain of course, who most likely will go broke. Maybe become the 51st state as I think is happening culturally if not economically and politically.
Everybody worries about the national debt but this is just make believe money in a make believe world. Yes America is going to the dogs, but this is just a natural process of the cycle. The Chinese will take the reign now. America will fall back over the next couple of years into the position that Britain had for 30 years.
Do I believe in Fiat currency, heck no. Do I believe in usury, no. Do I believe in the free market, yes!! Let the market run free, you can’t let Capitalism be constrained by central control, this is the problem. Banks have to fail, someone has to loose. Centralised control is hurting the economy. Banks are big and yes a lot of people will get hurt if they fail. But that’s the way the ball bounces G.
So I will keep stacking Silver and Gold. Although since I just purchased a rather a large amount of silver grain, I don’t know if this is regarded as stacking any more, more like adding to the pile.
And before I get lectured on “not verified, not safe”…yes it is safe, I know my sciences, and I know the density of silver and Archimedes principal.
Hyperinflation is probably started but government is tweaking the statistics to bury it from the sheep. I see it in food prices and medical prices.
Gold is going to and through $3,500 by 2017
Gold is going to and through $3,500 by 2017
Gold is going to and through $3,500 by 2017
Gold is going to and through $3,500 by 2017
Gold is going to and through $3,500 by 2017
Gold is going to and through $3,500 by 2017
Gold is going to and through $3,500 by 2017
Gold is going to and through $3,500 by 2017
Gold is going to and through $3,500 by 2017
Gold is going to and through $3,500 by 2017
Gold is going to and through $3,500 by 2017
Gold is going to and through $3,500 by 2017
We got the message Jim.
Is there a parrot in the room?
Is this man becoming senile?
The 1970′s were 30 to 40 years ago Jim. Thanks for the history lessons, and for reminding us what a legend you are.
I predict gold will reach $141,239.55 on 23-August-2024 at 4:21pm EST. It will be a cool, partly cloudy afternoon with a light northwesterly breeze of about 17 knots.
Give JS a break. This man does more for more people than most of us will ever do even if we live to 111. He said on every post for over half a decade that gold was go to and thru $1650 by 2011 and that’s what happened. He even offered a $1M bet to anyone who would take it.
You should pick on someone who is a disingenuous douchebag, not JS, who IS A LEGEND regardless of whether you acknowledge it, or if you were even never born. And never underestimate history lessons, or the wisdom of elders. Someone with 150 IQ and PhD from MIT could be completely useless in economics and finance. JS has more accumulated experience and learning than 99.99999% of people on the planet.
Have YOU ever helped thousands and thousands of people save themselves from losing their ass and helped them secure their future? That’s what he did for me. While people were mocking him and his “Gold to $1650″ mantra in 2006 while gold was only $650, I was buying, not mocking. I don’t blindly follow anyone obliviously. JS has always been slightly ambivalent or condescending toward silver, and I ended up buying more silver, and have done better as a result.
Thank you JS, that don’t make them like you anymore.
Slvrisgold,
Jim is old enough and rich enough to take it I am sure. He certainly hands out his fair share of brutal honesty and opinions, otherwise known as insults.
As it happens I am telling anyone who will listen about the whole rotten setup in the world of politics and banking, and advising them to acquire precious metals, as indeed I am doing.
I have no problem with the thrust of JS’s message – I have a problem with the mind-numbing repetetiveness of his mantras.
“In politics, nothing happens that was not planned that way. If it happens, you can bet that it was planned that way” (FDR). The scum has to realize that hyperinflation is inevitable at some point and will be out of dollars and into gold. The scum was out of the market in 1929 before the crash. They picked up businesses at pennies on the dollar throughout the thirties. Hollywood was taken over in the thirties. They know when it’s going to happen. JS can only guess on the timing, but it is a very educated guess. Thank you JS. You are a hero.
It could be that we are already seeing moves from dollars and other fiat currencies into gold. Central bankers around the world, who know more about banking and the future of money than anyone else, are buying gold in multi-ton quantities. More gold is being bought by these people than at any time in the past 50 years. They KNOW that something big is in the wind and are reacting to that knowledge by buying gold with fiat currencies. China has a huge gold hoard and is still increasing the amounts they purchase. Due to the numbers they report, it can be difficult to tell just how much gold and silver China has but it is a lot and they are not collecting such large tonnages of PMs because they look pretty. Other than serving as partial backing for their currency, I can’t think of another reason that would justify the amounts of PMs that they are buying. Yes, they are diversifying out of dollars and other currencies but that is a wise decision on their part but that does not mean that they have to diversify out of fiat and into PMs. There are lots of other things that they can buy as well as PMs and are to some extent. The next year or two will be exceptionally “interesting times”.