Dear CIGAs,
Snow is no problem in Sharon, CT. In a town with less than 3000 residents, I am the guy in the suit. 
Jim Sinclair’s Commentary
I received a great compliment from a former Forbes reporter who now works for the Times. He called to remind me that when he wrote an article about me on December 10th, 2001 I had told him gold would go to $1650 and that Bear Sterns would go broke on OTC derivatives.
Jim Sinclair’s Commentary
Have you subscribed? The meat is in the full reports and is much more than these one liners.
Here is how John Williams sees things.
- 2010: A Year of Depressed Economic Stagnation
- 2011: A Year of Increasing Economic and Systemic Difficulties
- Gold Outperforms Dow for Seventh Straight Year (2010)
"No. 342: Economic, Market and Systemic Outlook for 2011"
Web-page: http://www.shadowstats.com
Jim Sinclair’s Commentary
In the spirit of recommending resources to you, consider the following.
GEAB N°50 is available! Global systemic crisis: Second half of 2011 – European context and US catalyst – Explosion of the Western public debt bubble
- Public announcement GEAB N°50 (December 16, 2010)
The second half of 2011 will mark the point in time when all the world’s financial operators will finally understand that the West will not repay in full a significant portion of the loans advanced over the last two decades. For LEAP/E2020 it is, in effect, around October 2011, due to the plunge of a large number of US cities and states into an inextricable financial situation following the end of the federal funding of their deficits, whilst Europe will face a very significant debt refinancing requirement (1), that this explosive situation will be fully revealed. Media escalation of the European crisis regarding sovereign debt of Euroland’s peripheral countries will have created the favourable context for such an explosion, of which the US “Muni” (2) market incidentally has just given a foretaste in November 2010 (as our team anticipated last June in GEAB No. 46 ) with a mini-crash that saw all the year’s gains go up in smoke in a few days. This time this crash (including the failure of the monoline reinsurer Ambac (3)) took place discreetly (4) since the Anglo-Saxon media machine (5) succeeded in focusing world attention on a further episode of the fantasy sitcom "The end of the Euro, or the financial remake of Swine fever" (6). Yet the contemporaneous shocks in the United States and Europe make for a very disturbing set-up comparable, according to our team, to the "Bear Stearn " crash which preceded Lehman Brothers’ bankruptcy and the collapse of Wall Street in September 2008 by eight months. But the GEAB readers know very well that major crashes rarely make headlines in the media several months in advance, so false alarms are customary (7)!
Jim Sinclair’s Commentary
Our friend Egon wishes everyone an interesting New Year, and a Happy one for those that are prepared.
HYPERINFLATION WILL DRIVE GOLD TO UNTHINKABLE HEIGHTS
by Egon von Greyerz
We now live in a world where governments print worthless pieces of paper to buy other worthless pieces of paper that combined with worthless derivatives, finance assets whose values are totally dependent on all these worthless debt instruments. Thus most of these assets are also worth-less.
So the world financial system is a house of cards where each instrument’s false value is artificially supported by another instrument’s false value. The fuse of the world financial market time bomb has been lit. There is no longer a question of IF it will happen but only WHEN and HOW. The world lives in blissful ignorance of this. Stockmarkets remain strong and investors worldwide have piled into government bonds in a perceived flight to safety. Due to a century of money creation (and in particular since the 1970s) by governments and by the fractal banking system, investors believe that stocks, bonds and property can only go up. Understanding risk and sound investment principles has not been necessary in these casino markets with guaranteed payouts for anyone who plays the game. Maximum leverage and derivatives have in the last 10-15 years driven markets to unfathomable risk levels, with massive rewards for the participants.
In the meantime central banks are cranking up the printing presses but as Bernanke recently said quantitative easing is an “inappropriate” description of what should be called “securities purchases”! Who is he kidding? What the Fed is buying has nothing to do with “securities”. There is no security whatsoever in the rubbish the Fed is purchasing. They are buying worthless pieces of paper with worthless pieces of paper. This is the Ponzi scheme of all Ponzi schemes.
Let us be very clear, this financial Shangri-La is now coming to an end. The financial system is broke, many western sovereign states are bankrupt and governments will continue to apply the only remedy they know which is issuing debt that will never ever be repaid with normal money.
Jim Sinclair’s Commentary
Unofficial problem bank list increases to 935 institutions. CIGA Rusty Bayonet wishes everyone a Happy New Years Eve!
