FROM JAMES SINCLAIR WEBSITE-—>>>
Dear CIGAs,
Alf’s target on gold will be reached when the markets are stunned to find out that there is no safe haven in the US dollar.
Prior to that, gold in under the magnet may reach $1224 on the simple panic now building in markets as participants recognize there is NO practical solution to the enormous disruption that OTC derivatives manufacturers, distributors and Hedgies have caused.
The BIS (Bank for International Settlement) publicly altered the manner by which they determine the total nominal value of derivatives outstanding. This has actually backfired badly now that it is assumed every entity is lying. The BIS was all that was left for somewhat legitimate economic statistics.
You probably noticed the amount of outstanding OTC derivative nominal value dropped 80% from the BIS figure of one quadrillion one thousand and one hundred forty four trillion dollars as the BIS moved to the computer modeling of value to maturity, another foolishly glib cartoon.
Paraphrase: Everybody has untold amount of skeletons in his closet. However, everybody is denying it. Still everybody is convinced that everybody else also has truck-load of skeletons in his closet and denying it with straight face.
No amount of bailout money would fix this mistrust. The financial world is as opaque as ever. Probably the most opaque in 100 years.