Posted on 12/08/2011 2:40:30 PM PST by Razzz42
With growing fears about the stability of the financial system, today King World News interviewed legendary Jim Sinclair. When asked about the ongoing crisis, Sinclair stated, “Well, the story this morning is we have it but we’re not going to spend it. We are not going to buy our own bonds, we’re not going to cap the rates, but we have it and we might use it. It’s like that every day. Those guys can’t get their story together for more than fifteen minutes.
The ECB has the availability of funds for some activities in the euro bond market. They will use it, they didn’t get it to look at. Gold was up into the $1,760s, $1,755 (to) $1,760 has been a technical area to be challenged. It was a fortuitous statement by Draghi that, ‘We might not use it,’ after which gold (traded) $1,709. It’s something to watch.”
“But it’s the type of action in their market that bespeaks things to come. Fundamentally we are locked and loaded to go into the $2,000 area. Technically this chop is going to end real soon and we’re going to get direction. And the direction, in my opinion, is not going to be on the downside, but rather on the upside.
The accordion chop is going to launch us into the $2,000 area. Gold has never been easy to trade and it’s certainly not getting easier. But there has been a great deal of money made, not by chasing, but by waiting for these drops and taking advantage of them when they come, (and by) laying off a little on the upside. With growing fears about the stability of the financial system, today King World News interviewed legendary Jim Sinclair. When asked about the ongoing crisis, Sinclair stated, “Well, the story this morning is we have it but we’re not going to spend it. We are not going to buy our own bonds, we’re not going to cap the rates, but we have it and we might use it. It’s like that every day. Those guys can’t get their story together for more than fifteen minutes.
The ECB has the availability of funds for some activities in the euro bond market. They will use it, they didn’t get it to look at. Gold was up into the $1,760s, $1,755 (to) $1,760 has been a technical area to be challenged. It was a fortuitous statement by Draghi that, ‘We might not use it,’ after which gold (traded) $1,709. It’s something to watch.”
Gold is cheap relative to the idea that you could have a life’s fortune on a statement from a clearing agent and find out that you don’t have a penny left anywhere. Which should you have had, physical gold or that clearing house statement? Gold is cheap because of the condition of other things....
When asked about the violent trading in the gold market, Sinclair responded, “You just saw it this morning and it didn’t even take ten minutes for gold to move down 50 points. So if you don’t think you’re going to see $200, $300 and $400 ranges you’re kidding yourself.
How can you have your money anywhere, Eric, and expect and feel certain that this money will be returned to you when you see the inner workings of finance and Wall Street through the eyes of the collapse of MF (Global)? Totally shocking.
We are in the midst of a crisis which is so complex that the public generally doesn’t understand it. This event is so complex that I’m not sure professionals reporting on it or possibly even a good deal of the management of companies operating in it totally understand it. The derivative is ahead of the client.
So in the Lehman case the banks just took out Main Street. When MF Global went down, that broke the mechanism. The sharks will eat the sharks now because in the case of the clearing house, what you are taking out are the traders and investors who had confidence that a clearing house meant their money was safe and segregated from misuse by the management of the clearing house. You lose confidence in that, how do you settle trades?
Today it’s not a question of will your investment come out correctly. Today it’s a question of whether the money you put into the investment will ever come back again, regardless of what the quotation is. The only money I can count on is the gold I own. Everything else depends on the system.”
When asked if there was any hope for the current system, Sinclair stated, “There is no one out there who has a plan that has a practical application which can change what is now. There is no practical solution being offered. There is no politician who has the courage to do the necessary and if the necessary was done, the system is so fragile that it would totally implode.
There is no solution to the present problems. What’s done is done. What will happen will happen. If you’re not prepared, then you become the road, okay, you become the pavement. You must be your own central bank because the system is broken.”
This was an extremely important and powerful interview with the man who’s father was business partners with Jesse Livermore. The above was a small portion of a segment where Sinclair laid out, with remarkable precision, just how dangerous the situation is today. The KWN audio interview with Jim Sinclair will be released on Friday
You must be your own central bank because the system is broken.”
...gulp. Looks like cashing in the savings and keeping a minimum in checking is a good plan. Keep the cash in a safe or in the back yard, just like grandpa.
Problem is they might outlaw cash so your best temporary bet is to buy and store most of your wealth in gold or silver or something mobile. Too bad you can’t take your house with you.
bflr
I know a man who lived in South Africa when they wouldn't let you take your money out of the country. (I don't know if it is still that way) He bought a gorgeous ocean going yacht.... fully tricked out with gold faucets and all the bells and whistles you could buy. He spent all he had on that boat.
Then he sailed to England, sold the boat and set up life there.
Another man converted all his cash into rare stamps, placed
them inside the back of his watch, and flew away a rich
man.
Probably a good time to buy another boat then... ;-)
Wow.
I know someone who has passed on since, who lost his pharmacy because the government would not clear indigent beggars from his front door, everything he owned was not allowed out of SA. He built a small catamaran and he and his wife made it to the Netherlands Antilles where they supported themselves by running tourist cruises.
The mother of a friend elected to stay when her children all emigrated after their father died. She stayed because her pension could not be taken out and by then the Rand was not worth enough to make it worthwhile.
Your friend must have either made his getaway way early in the crisis or he had friends in high places. Every South African I have met in the past 20 years or so had a vast tale of financial loss.
Then, of course, the government can outlaw and confiscate all private gold and silver holdings...
...and do NOT think they won’t do it.
Yes, my friend left more than 20 years ago.
I knew a guy back in the early nineties from SA. He made an annual trip to Hawaii to surf the north shore every winter. One of his surf boards was always really heavy and, of course, he never took the boards home with him.
Both of my examples were from the 1980s. Prosperous folks, but not wealthy. IIRC, the pharmacist and his wife actually had to build their boat slowly over time because he lost his business and she was a government biologist on a small salary.
Kudos to anyone who saw it coming and was able to get out with some assets.
My friend whose mother stayed finally was able to get enough together to visit back in 1999 or so. Very expensive, since they wanted her to meet her grandchildren. The mother requested things like pantyhose and yogurt covered raisins. Most goods were available from Eastern Europe, again, IIRC. Poor quality stuff.
yet...keep cash at home...they'll come around and change the paper money and demand that all bring their greenbacks in and they'll record whatever you bring in...
hellavu system...
Take care of yourself 1st. Get out of debt, don’t go into debt. Buy a gold coin or two or some silver coins, hold some cash too for emergencies, enough for maybe 30 days or more. Travel light and get rid of the excesses.
If we are lucky the worst will be over by the year 2020.
If you are paying attention and can comprehend any part of what is going on, you might be able to follow this interview...
http://www.youtube.com/watch?v=aclQKAKndjE&feature=player_embedded
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.