Contagion Is On The Move

Posted at 1:44 PM (CST) by & filed under General Editorial.

“Contagion Is On The Move”

“The Strong Dollar is the Silent Killer”

“The Strength of the Dollar is its Nemesis”

“The huge Dollar debt everywhere is all a Synthetic Dollar Short”


“It is all of such an unimaginable magnitude that there are not enough dollars anywhere to make cover or stop loss”



         “THIS will kill all in its path, including the 1%”

     “When is Now.”

   Jim Sinclair

September 3, 2018

Federal Reserve Gov. the Hon. Powell has only one of two moves he can make. Flood the world with dollars by active debt monitization (QE) internationally, or have the experience of presiding over the greatest depression in the history of man as his legacy. What would his boss have him do? The debt clock is ticking towards the reset by June of 2019.

His boss has not had many allies in the camp, as President Trump’s choice of people leaves something to be desired. Is Powell another Sessions who puts his head in the sand or Cohen, the recorder attorney, supposedly friend, and legally bound as a confidant?

When has the Fed been politically independent in its history?  Chairman Volker would not be the “Master of the Universe” had his boss not quietly backed him all the way! Believe me, I know.

This is the start of the final battle between Light and Lucifer much like the movie, “The Firm.” Don’t kid yourself. This is not simply material, but spiritual as well. The rest of everyone’s life, reading this, depends on how from today to 2021 is handled. There is no exit to this contagion that is now on the move. It  must be confronted one way or another. That is why “Now is When” because “When comes between the Rock and the Hard Place.”

Why Pain in Argentina And Turkey Is Hurting Indonesia
August 31, 2018

As financial market meltdowns in Argentina and Turkey spread through global emerging markets, Indonesia is feeling the pain more than its peers in Asia. The rupiah slumped to its weakest level against the dollar since the 1998 Asian financial crisis, prompting the central bank to step up its efforts to stabilize the currency. Bank Indonesia has been tapping its reserves to the tune of billions of dollars and has raised interest rates four times since mid-May.

1. What triggered the selloff?

Even before Argentina and Turkey entered crisis mode, emerging markets were under pressure because of rising U.S. interest rates and a stronger dollar. Part of the appeal of emerging markets is their relatively higher yields compared with developed markets. When that differential falls because of the U.S. Federal Reserve raising borrowing costs, emerging markets become less attractive. More broadly, a deepening currency crisis in Argentina on top of ructions in Turkey have reduced investor appetite for risky assets, prompting an exodus from emerging markets to relatively safe havens in developed markets.

2. Why is Indonesia being targeted?

It’s one of a few Asian emerging markets that runs current-account deficits (so do India and the Philippines), and recent data shows that widened to a four-year high. The deficit economies rely on foreign inflows to finance their import needs, making them vulnerable to a slump in sentiment and sharp outflows. Foreign investors own almost 40 percent of Indonesia’s government bonds, among the highest of Asian emerging markets. Add to that the government runs a budget deficit, meaning it needs to borrow to finance spending.

3. How badly are the currency and stocks faring?

The rupiah is the second-worst performer in Asia (after India) this year, but it’s the hardest-hit currency since the emerging-market selloff began in late January, weakening about 9 percent. The Jakarta Stock Exchange Composite Index, or JCI, is down more than 6 percent this year, while the yield on the benchmark 10-year government bonds has risen this year to the highest since the end of 2016.


Jim Sinclair
Executive Chairman