Jim Sinclair 1-17-08

Discussion in 'Financial Cents' started by melbo, Jan 18, 2008.

  1. melbo

    melbo Hunter Gatherer Administrator Founding Member

    Posted On: Thursday, January 17, 2008, 5:45:00 PM EST

    The Panic Starts

    Author: Jim Sinclair

    Dear CIGAs,

    There is no doubt the Fed and the PPT are meeting right now. A drop of over 300 points on the Dow after the Chairman of the Federal Reserve speaks publicly presages a 1000 point break in the Dow Jones Industrial Average coming quite quickly, if not tomorrow.

    Unless the equity markets can be calmed, a panic is about to happen, making the statement "This is it" a horrible reality.

    If the equity markets cannot be calmed then:

    Recognize this is the Formula happening like everything else much sooner and much bigger in its implications than anticipated.

    Gold will rise to $1650 as an almost immediate effect of what will be done to attempt to fend off a total panic starting to take place in general equities, therein threatening to be followed by all credit markets of all kinds.

    The funds and hotshot short term traders in gold shares will be killed by the upward explosion of the gold price about to occur.

    The PPT and the Fed will step out of gold’s way because gold is one of the tools used in 1930 by Roosevelt and in 2000 by Bush. It will be used again now on the upside.

    Gold is the only insurance there is against what all this means because a panic in equities will blow the financial system, already coming apart, to smithereens.
    All country funds would shut down on any further investments in "at the wall" financial institutions.

    The rollover in credit and default derivatives would exceed the entire foreign debt of the USA.

    The rest of the $450 trillion dollar mountain of derivatives would start a disintegration like nothing you have every seen in your lifetime.
    Consumer demand would slam shut.

    The auto industry might as well go into liquidation this coming Monday, avoiding the June 2008 rush.

    The US dollar would burn a hole in the floor going directly to .5200 or lower.
    As the dollar disintegrates gold would rocket to and through $1650 in days.
    The markets for general equities would all have to institute total trading halts every 100 points on the downside for 30 minutes each.
    All commercial call loans would be called.

    All debtors one day late on any payment, lacking grace period, would be liquidated. All debtors over one day of the grace period would be liquidated.
    It is clearly visible to anyone with eyes or a mind to think that the PPT has lost all semblance of control in the equity markets and will soon in all remaining markets.

    The commercial paper credit market which is almost dead will die totally.
    Should no emergency action take place soon, you will see an old fashioned panic of the 1929 variety.

    Just as emotional fools sell gold and gold shares, be assured that more emotional general equity fools will unload and bring the averages down more than ever in history in one day.

    Recognize this is the Formula happening like everything else much sooner and much bigger in its implications than anticipated.

    Emergency action will be all splash and theatrics but truthfully the cat is out of the bag. It buys some time but corrects nothing. It makes the Formula 100% correct.

    There now must be EMERGENCY ACTION because the Chairman of the Fed has BOMBED OUT PUBLICLY and a PANIC is about to occur. Expect EMERGENCY ACTION in days, not weeks.

    If you have not protected yourself, you may only have days to do so now.
  2. melbo

    melbo Hunter Gatherer Administrator Founding Member

    Please pray Jim's wrong
  3. Blackjack

    Blackjack Monkey+++

    If he's not wrong... what would this mean to the average poor guy (me). Sorry, I'm financial speak illiterate.
  4. Bear

    Bear Monkey+++ Founding Member Iron Monkey

    Watch you're retirement and education savings accounts... 401ks etc... if the market goes... so will those accounts...

    Watch your bank accounts.... and looks for bank runs where everyone rushes to take out their money before the bank closes... or the government declares a bank holiday and closes the banks and the atms....

    General panic will mean folks may rush to buy staples and food stuffs before the markets run out.... deliveries to restock may be quick, slow or.....

    Depends on the industry you work in... slow downs and layoffs as the economy cascades slowly or rapidly to halt....

    Out of work, no pay, no savings, mounting bills, no work, drinking, drugs, frustration, anger, sense of helplessness... that will lead to increase in civil disturbances and crime....

    Public services may be affected...

    All possibilities for the average person and family...

    Could be a relatively short period of adjustment with almost no felt affects, depending on your financial position or it could be a significant period of adjustment....

    Pay attention.... something really bad is scaring the folks who are supposed to be in control... and that is making the world markets jittery.... wouldn't take much to "spook" and "stampede" the herd...

    One thing is for sure... rising inflation is already affecting how much your paycheck or retirement check can buy.....

    JMHO.... Hope that helps....
  5. ghrit

    ghrit Bad company Administrator Founding Member

    Yep, gold is going up. Bear in mind the price is in inflated frns, not real value. If 1000 oz will buy a car today, that's all it will buy tomorrow.
  6. TnAndy

    TnAndy Senior Member Founding Member

    Actually, I look for gold and silver to both take a bit of dip as people move out of all asset classes except cash......then, as they come to understand the cash is becoming worthless before their eyes, the move will be on to gold/silver in a frantic way. We could well see gold at 2000/oz or more......the only question being what is a 'dollar' worth at that point.

    And the numbers seem to bear this out this morning.....gold in the 880 range, and the US dollar index in the green at 76+
  7. Jonas Parker

    Jonas Parker Hooligan

    Andy, you beat me to it. I watched the president "dump" money on the American taxpayers this morning while the Dow Industrials continued to fall. I think Jim's right on this one. The minute the DJIA goes below 10,000, the fireworks will start for real.
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