Saturday, May 28, 2011

Jim Sinclair: QE3 Is Guaranteed, Odds Are For Hyperinflation

Long speculated upon in our community, the rock and the hard place has finally become a reality. An economy not accelerating at an accelerating rate is declining at an accelerating rate. The mirage of a recovery is getting harder and harder to MOPE about. It simply is not there. We are entering a declining phase that will not end in any kind of a soft landing.
Stimulation monetarily, QE, and fiscal are like controlled substances in that the real high is on the first injection. After that, each additional stimulation of an economy must be multiples of the first stimulation in ever increasing size just in order to hold the line. QE3 is guaranteed unless the powers that be want to see a depression that will make the Great Depression look like kindergarten in the pain department.
This week we saw a European Bank forced to sell their US mortgage derivatives and the loss was a shocker. These pieces of crap are not worth the digital bits they are written on. Smart money has not let this event pass their view, and know now how broke the US financial system really is. This event broke the camouflage of FASB’s selling their souls out to politics by allowing the banks to value their mortgage derivatives at any price the bank wanted on the bank’s cartoon balance sheets. The western balance sheets of their financial institutions are raging misstatements. The system is broke. This is why there is no recovery of merit but rather a statistical aberration, which was until recently only holding the line.
Here we are at that place we have anticipated for the past 45 years knowing that all the games being played had to play out at that point where super stimulation had no effect and it became totally appreciated that even many trillions of printed money will only impact the currency and not business.
The rock and the hard place is a time when the Western World is simply screwed.
The risk of not stimulating is stagflation at a spiritual level. The risk of stimulating is stagflation at a spiritual level. The risk of doing nothing is both an economic and currency collapse of biblical proportions.
This is what the three illustrations of the skier teach. Should the Fed lose control of this, which is predictable, then currency induced cost push inflation would take gold to Martin Armstrong’s $12,500.
The odds are 70/30 right now that hyperinflation occurs. That takes gold over $1650. If the odds shift then gold starts a run to balance the International Balance Sheet of the USA and will secure Martin Armstrong’s target of $12,500.
More Here..


  1. You folks are going to love it when milk goes to $6 gal and orange juice goes to $8 gal and Gasoline ? Ah well that's going to be at least $12 bucks a gal.

    Stupid Americans letting their govt fleece them and grope them at the airport.

    Feeling scr#@#d yet folks ? There's more where that came from... You are going to really love the coming 64% tax bracket already in the works to fleece you big time and keep all these wars going...

    Ha ha ha ha ha ha ha ha!!!!

  2. Either QE3 or instant great depression. Obviously QE3 because the politicians always looking to blame others and kick the can down the next election cycle.

  3. Bring on the QE to Infinity.
    Locked and loaded. (with 3-digit oz of AU)

  4. 744 is going to love it as he takes it in the arse, he and his mum love that

  5. I don't think anyone here really wants the collapse. Even if you have tons of silver, gold, guns, and bread it isn't going to be pleasant at all. It is a Catch-22. You want to see the banksters house of fiat money fall, but beware they are brilliant at the problem-reaction-solution game; ie, the Bank of the World.

  6. To make the cuts needed, people would have to be left to die in the streets. It really does come down to that. We would need to cut off benifits for EVERYONE who did NOT put money into it. END earned income tax credit. END food stamps, and make people get in line for actual FOOD!.

    Those things alone would sparks protests and maybe riots, and they know it.
    That is EXACTLY what Obama wanted.

    I personally don't have a problem stepping over dirtbags to get to work.

  7. If you think a collapse is coming, as I do, then I highly suggest you read Fer Fal's blog from Argentina. There is one entry in particular which is extremely valuable. Just google "FerFal" and "Thoughts on urban survival".

    It's based on his actual experience of going through an economic collapse in Argentina.
    Here's a link:

    -Not Sam

  8. OMG!

    Take this viral!

    Adam Kokesh body slammed, choked, police brutality at Jefferson Memorial

    The police state up close and personal.

  9. @10:48 You are as dumb as a sack of nails because the same people you are backing are going to betray you and your family when TSHTF! so take that and smoke it.

  10. 8:02 that video would only be alarming to someone who was not aware they are living in a police state. Everyone should have got that message by now. Home of the fee, land of the slave.

  11. RE: "This week we saw a European Bank forced to sell their US mortgage derivatives and the loss was a shocker." Does anybody know which bank it was that had to sell their derivatives last week?

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