Interview With Jim Sinclair

This interview with Mr. James Sinclair is straight to the point. You will learn the truth first hand about the current state of and the future of the U.S. Dollar, Gold and the current and future outcomes of the credit derivatives crisis.

This is a highly recommended listening event. Enjoy.


Interview with Jim Sinclair

Will China Purposely Crush the U.S. Dollar with Nuclear Force?

China has all of the power when it comes to pricing the U.S. Dollar lower. Accordingly, they have now issued a "nuclear warning" to the United States regarding the value of the U.S. Dollar and how it relates to the value of the Chines Yuan.

It is clear that China has the power to decimate the value of the U.S. Dollar and in the process of selling off U.S. Treasuries, send U.S. interest rates much higher. This would quite possibly have a huge impact on the already fragile U.S. Real Estate market as well as the credit markets, derivatives, etc...

I'm Scared

Dollar Falls to 26-Year Low Against Sterling

TOKYO, July 18 (Reuters) - The dollar slid to a 26-year low against sterling on Wednesday due to worries about the U.S. subprime mortgage sector and after British inflation data boosted expectations for higher interest rates there.
Sterling rose as high as $2.0492 , getting a boost after data on Tuesday showed that the annual core consumer price index in Britain rose to a decade-high 2.0 percent in June.

(more...)

Dollar hitting new lows against the Sterling is just one more notch in the dollar decline. Are we due for a short term rally soon? I don't know, but long term dollar fundamentals stink and I expect the dollar will trade much lower than it is now.

New Lows for the $USD?

The U.S. Dollar is testing new lows right now. If it is not able to hold above this critical support level, expect the precious metals to head much higher from here.

Will Higher Rates Sink Gold and Silver?

Check out this Bloomberg article below. The headline speaks for itself. If you have ever read the work of Jim Sinclair, then you already know better :)

Gold, Silver Fall as Higher Interest Rates May Pare Demand
By Choy Leng Yeong

June 12 (Bloomberg) -- Gold fell, resuming its decline to a 12-week low in New York, on concern higher global interest rates will reduce demand for the precious metal as an alternative investment. Silver also dropped.

Gold tumbled 3.9 percent last week, the biggest weekly decline in three months, after the European Central Bank and the Reserve Bank of New Zealand raised rates. Holding gold becomes less attractive when rates rise because the metal has no fixed returns. U.S. Treasury yields rose today after China said prices increased at the fastest pace in two years, renewing speculation rising global inflation will prompt central banks to raise rates. (Read the rest of this article HERE)

Kuwait Drops Peg to U.S. Dollar

Another prop for the dollar has just dropped....... Click here for the article

If Your Not Outraged, Your Not Paying Attention!

Are you paying attention to the amount of value our dollar has lost since 1913? Are you paying attention to the massive deficits that our government is running? How about the fact that our money (also known as Federal Reserve Notes) is nothing more than a promise to pay more worthless Federal Reserve Notes?

Have you noticed that in our current monetary system that all money is borrowed into existence? Do you realize that if all debts were paid back today there would be no money at all? Does this seem like a stable monetary system to you?

Are you aware that the Federal Reserve is neither federal nor does it have any reserves? Do you understand that the power to coin money has been handed over from our own government to a private banking cartel known as the Federal Reserve?

Have you realized the fact that there is no law that requires you or any other American to pay income taxes? Are you paying attention to the fact that if you don't pay income taxes you will most likely be terrorized by the IRS?

Do you realize that all of the income tax that Americans pay goes straight into the coffers of the Federal Reserve to pay for the interest on the money that our government borrows from this private banking cartel? Did you know that our government could change this if it wanted to?

Are you watching as special interest bills get hidden inside of other larger bills even though they have nothing to do with the bills they are attached to? Do you think that the Patriot Act has anything to do with being patriotic or giving you more freedoms?

Did you know that on 9/11, it wasn't just the Twin Towers that came down, but there was a third building? Are you aware that no plane ever struck it? Do you know why?

Are you feeling more secure now that we have the Department of Homeland Security and the TSA? Are you starting to get the feeling that the war on terror is really just the war against our freedoms?

Are you standing by and doing nothing as the corrupt organization known as the FDA makes a final power grab to regulate all mineral supplements, vitamins and any other substance that may have a positive effect on your health?

Are you getting excited about the new National ID card that you and I will be required to carry starting in May of 2008? Do you look forward to carrying around your shiny new ID with an RFID chip inside of it that will house your personal data but be scannable by anyone that is close enough.

Are you ready to become a part of the North American Union? Do you even know what this is and who is pushing for it?

Do you think it is a good thing that our government has a working group on capital markets also known as the plunge protection team? Do you know how much money it takes each day to finance our current account deficit?

Are you happy that we are a war mongering nation spending ourselves into oblivion while we can't even protect our own borders?

Are you paying attention to what the price of gold and silver are telling you? Are you outraged? Or are you even paying attention?

A look at this year in charts

This year has come to an end. What does next year have in store? Let's take a look.

Silver and gold ended the year on a down note.

The Dollar and Bonds ended the year on an upward note.

Inflation is heating up.

The United States continues to print too much money and spend it on useless wars.

The Republicans and Democrats continue to keep a lock on power and corruption as the U.S. citizens are too stupid to figure out that they have been duped for years now. There are no Republicans or Democrats (except for Ron Paul who is a Real Republican). There are only Demopublicans. As long as the two party system remains in place expect more spending, war, entitlements, corruption and a decline in the standard of living of Americans.

A big thank you to Downsize DC and Ron Paul. These are two worthy organizations that are actually trying to do something about our absurd political and economical condition. Please visit them and support them and you can make a difference too.

A happy New Year to all.

Chart Review Below:

Why is the dollar losing value?

The dollar is losing value because of the federal reserve, the treasury department and our irresponsible government that keeps growing and growing and growing. Kind of like the energizer bunny. It just keeps on growing and spending.

That is why it is always funny to hear the likes of big Ben Bernanke saying that they are vigilant in the fight against inflation. They are the ones responsible for inflation and in fact, without our governments reckless spending which promotes inflation, our government wouldn't even need the Federal Reserve to print up all that money for them to borrow.

Read Ron Paul's article below because he sums it up nicely. In fact, Ron Paul is one of the only responsible individuals left in our government today. He speaks the truth but few care to listen.


December 4, 2006

Author: Ron Paul

The financial press reported last week that the value of the U.S. dollar plummeted to a 14-year low against the British pound, and weakened against the Euro and Yen. Many financial analysts predict continued rough times for the dollar in 2007, given reduced expectations for economic growth at home and less enthusiasm among foreign central banks for holding U.S. debt.

This decline in the value of the dollar is simple to explain. The dollar loses value as the direct result of the Federal Reserve and U.S. Treasury increasing the money supply. Inflation, as the late Milton Friedman explained, is always a monetary phenomenon. The federal government consistently wants to spend more than it can tax and borrow, so Congress turns to the Fed for help in covering the difference. The result is more dollars, both real and electronic-- which means the value of every existing dollar goes down. (Read the rest of the story here)