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Ardent Listener
Administrator
USA
4841 Posts |
 Posted - 01/17/2008 : 19:58:14
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The Panic Starts-Jim Sinclair
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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 break in gold 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 of 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 resemblance 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 in the next two trading days, 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.
The funds and hotshot short term traders in gold shares will be killed by the upward explosion of the gold price about to occur.
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 yourselves, you may well only have days now.
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All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
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Frugi
Administrator
USA
627 Posts |
Posted - 01/17/2008 : 22:11:28
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| I was in the coin store tonight to buy some 2x2's for the nicer victims of my hoarding. I waited 30+ minutes to pay which I don't mind waiting it is a fun enviroment. I waited this time because the owner was busy selling gold coins to customers. If this doesn't mean something I don't know what does. This is a non-large-scale sales store making $30,000.00 in gold sales in a matter of minutes. I have been going there for years and always wait, because he is a quality jeweler, and has much business for jewelry, he buys lots of coins but doesn't sell much, he is a collector and likes copper. It was unusual for me to see so many unrelated people coming in with $$ for gold, all in about a 30 minute time period. WOW! |
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copperbullion
Penny Pincher Member
Australia
136 Posts |
Posted - 01/17/2008 : 23:37:51
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| I think Jim is being alarmist. If those things happened, we would all suffer, PM's or not! Many people don't have the knowledge, cash or credit left to go out and buy large amounts of gold either! |
Edited by - copperbullion on 01/17/2008 23:39:51 |
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fiatboy
Administrator
912 Posts |
Posted - 01/18/2008 : 06:30:23
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I follow Sinclair closely and tend to agree with him, but I think he's calling the panic too soon.
"...you may well only have days now." Nope. You have more time than that. Time is running out for regret-free preparation and sub-1000 gold, but it sure as heck ain't over yet. |
"Bart, it's not about how many stocks you have, it's about how much copper wire you can get out of the building." --- Homer Simpson |
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copperbullion
Penny Pincher Member
Australia
136 Posts |
Posted - 01/18/2008 : 06:34:31
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| Good point fiatboy... he IS calling it too soon! |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 01/18/2008 : 06:56:46
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| I agree he is calling it way too soon. One can look at it as an early warning to give more people the chance to get ready. But on the other hand if you cry Wolf too often people tend to ignore you and the problem after a while. |
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 01/18/2008 : 07:25:35
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Gold will likely crash if the market crashes. A lot of the same people that have money in the market also have money in paper gold. If they are forced to liquidate because of a market crash, they will liquidate everything.
It seem counterintuitive that people would be selling gold during a market crash, but it has happened before. The baby gets thrown out with the bath water.
The crazy bubble days for gold and silver will come after the crash and only if people are forced to the conclusion (through having to eat their losses) that neither the stock nor the bond market are a safe place to keep money.
Of course trying to time this and move your money from PMs to cash and then back to PMs is near impossible. So probably the best thing to do is to stay in PMs and ride the ups and downs. |
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n/a
deleted
85 Posts |
Posted - 01/18/2008 : 09:38:08
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| My concern is not that the stock market will crash but rather that my job will. It's not that I couldn't get another, but for what pay and how long would it too last? |
"The key to building wealth is to not lose money." - Warren Buffet |
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fiatboy
Administrator
912 Posts |
Posted - 01/18/2008 : 15:27:46
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I think we're in the early stages of monetary upheaval. People are losing confidence in the unsustainable debt-as-money paradigm (an historic aberration), and rediscovering metals, bartering, local currencies, and life outside fractional reserve fiat banking. This awakening is slow as molasses, no doubt, but the game can't last forever. All fiat currencies end in oblivion. Exter's Pyramid and Gresham's Law will prevail.
I eventually foresee prices of paper gold decoupling or diverging from prices of physical gold.
For a low-on-funds twenty-something, copper pennies must suffice.  |
"Bart, it's not about how many stocks you have, it's about how much copper wire you can get out of the building." --- Homer Simpson |
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copperbullion
Penny Pincher Member
Australia
136 Posts |
Posted - 01/18/2008 : 18:15:38
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| I bet copper coins held their value during the German hyperinflation following World War I. Copper pennies are a great investment: You can "buy" them for half price, and not many people have "woken up" to them! |
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fiatboy
Administrator
912 Posts |
Posted - 01/18/2008 : 18:25:36
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quote:
I bet copper coins held their value during the German hyperinflation following World War I.
They did.  |
"Bart, it's not about how many stocks you have, it's about how much copper wire you can get out of the building." --- Homer Simpson |
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Know Common Cents
Penny Pincher Member
195 Posts |
Posted - 02/02/2008 : 11:17:42
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Jim Sinclair is widely followed and respected, although this Doomsday scenario seems to be too fast and too soon. I might be inclined to say that a drop of 500-700 Dow points after Pres George W speaks or after the November election results, there'll be greater market turmoil.
The Generally Dumb Public (GDP) is getting more confused each day about whether the US is in a recession now. Where's the bottom of the market? Should I buy stocks/gold/property/oil/food/firewood/water/or____________ now or wait? DUH!! Get a brain, folks. The GDP is the way they are because they're content to let others do the thinking for them. They're the ones lounging on Titanic's deck in the middle of the icy waters waiting for the White Star Line carpenters to build more life boats. "This vessel (the US economy) is unsinkable, you know. I'll have another Scotch and a cigar."
Most of the GDP wouldn't give up their reality shows in favor of going to the library or on line to begin educating themself. Sad. Oh well, those 60" plasma TVs will be quite functional as a laundry drying rack after they've done their wash at a nearby lake or stream.
Gee. Am I too cynical? Nah. |
Here in Wisconsin, we have some of the highest property and gasoline taxes in the US. We're squeezed so much, I have to make my daughter wear penny boxes for shoes. At least she has an endless supply. |
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The Panic Starts
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