Sinclair – This Will Create The Mother Of All Financial Crises

Today Jim Sinclair spoke with King World News about what he believes will create the “Mother of all financial crises.”  He also discussed the coming collapse and the desperate government intervention taking place in key markets.  Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say.

Sinclair:  “The Plunge Protection Team (PPT) is not a speculation.  There is a group of advisors to the White House which deals with markets.  They also gather when markets are in extreme conditions.  So to be clear, there is an organization which is designed to intervene in the markets.

The problem now is they are manipulating every market on the planet.  So you had this group which was created to stabilize during extreme conditions that has now decided their job is to run all of the markets of the world….

“Part of what these new masters of the markets do is control the price of key commodities such as oil and gold.  When oil rises it indicates inflation.  As gold rises it casts doubt over the dollar.  So as I have mentioned previously, on the opposite side of the PPT, you have to have the RPT or Rally Protection Team.

What has been happening in the gold market since the Cyprus disaster is a depreciation of the price of gold that has no fundamental rationale to it whatsoever.  The idea that you can take depositors’ money is a complete reversal of the strategy which has been in place since 2008.

But right now the government is manipulating so many markets it’s hard to understand how they can keep it all straight.  Almost every major market in the world is being controlled in one way or another by one government group or another.  It’s like a dam that’s about to fall apart and there are 1,000 fingers in every possible hole.

It will be like magic if in fact this type of strategy can be successfully employed for any significant length of time.  You also have to bear in mind that all of these manipulations result in net positions.  If there is selling in the paper markets by eight agents acting on behalf of the US government, who are in there to protect the dollar, when they sell something such as gold they create a position.

Even though these positions are not properly reported to the public, they do pile up.  They do create a crowded corner in a market and interfere with a free market and its activity.  So the idea that governments can do anything they please to fails to take into consideration that in suppressing the price of gold, positions are in fact taken.

People also have to keep in mind that a market which would only go to one side would be a market that would cease creating price in any kind of orderly manner.  I believe we are now at a point where the tape and physical market in gold are now working directly against the government positions and the market is ready for a turn.

My opinion remains unchanged about what the gold market is going to do.  I may have been off by a few days, but everything I see here indicates the depreciation in the price of gold has run its course, and will be proven to have run its course this week as the physical market is calling the government’s bluff.”

Eric King:  “What were your thoughts on what Dr. Paul Craig Roberts had to say on KWN?”

Sinclair:  “Dr. Roberts said something that most people didn’t really understand in his KWN interview.  He was speaking about the limitations of QE.  We believe in QE to infinity, but Dr. Roberts clearly pointed out that infinity would be a period of time in which the dollar would begin to reflect the enormous creation of dollars and subsequently weaken.

So in a sense, yes, QE is limited by the ability of the US dollar to have a firm appearance.  Right now the dollar is free and clear, but under .79 it comes into question, and under .72 on the USDX it’s (QE is) impossible.  That would mean the crisis was at hand if the dollar broke under .72 and QE couldn’t continue.

The situation would then feed on itself and we would see a significantly lower dollar with a contracting economic environment that would create the Mother of all financial crises.”

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KWN Sunday Gold Chart Special

Today King World News is pleased to share with its global readers a fascinating piece that was put together by Nick Laird from ShareLynx out of Australia. Laird put together four extraordinary gold charts to go along with his commentary below. We thank Laird for sharing this piece with our global readers and part II covering the silver market will be released later today.

Nick Laird: “Net Imports for China via Hong Kong were 63 tonnes for the month of November – the fourth highest level ever seen. Total cumulative net imports since 2001 now stand at 1242 tonnes (note black line).

Continue reading the Part I of the Nick Laird piece below…

“The following chart shows total net imports at 462.75 tonnes for the 11 months of 2012.

Here’s a bigger view combining China‘s domestic gold production plus it’s net imports from Hong Kong. This shows the potential gold quantities held in China.

And here’s the same view over 80 years showing the parabolic nature of China accumulating gold, especially since the year 2000.

Currently we see China being the world’s #1 producer. China is importing gold via Hong Kong in ever increasing quantities and also aggressively accumulating foreign producing gold mines in an attempt to dramatically increase their gold reserves.”

Part II of Laird’s incredible chart series which covers the silver market will be released later today.

Article Source: Kingworldnews

Turk – A Black Swan Event, Global Monetary Reset & Chaos

Turk – A Black Swan Event, Global Monetary Reset & Chaos

Today James Turk spoke with King World News about a “Black Swan” event, the coming global monetary reset, and the incredible price action that KWN readers can expect to see in gold and silver over the next 60 days. Here is what Turk had to say in this fascinating and powerful interview:  “What we saw in 2012, Eric, is a good example of what I have been calling a ‘managed retreat.’  The central planners were out in force – particularly in the fourth quarter – trying to keep a lid on precious metal prices, and they managed to accomplish that to some extent.  Nevertheless, despite their best efforts, last year gold rose 7.0%, and silver climbed 8.2% in US dollar terms.” Continue reading