By: Jim Sinclair Post Edited: January 19, 2010 at 5:10 pm
Filed under: General Editorial
Dear Extended Family,
The only light shining on the dollar is the shadow cast by a barrage of MOPE over the implications of Greece and the weaker members of the euro financial problems, and now the discovery that the economic recovery in Euroland is nothing to write home about.
By comparison, there is total media silence on the implications of the bankruptcy of many US states.
It is crystal clear to any thinking person that the outrageous claims of the US economy recovering and sustaining that recovery is nothing more than Pixie Dust.
The dollar has no meaningful upside because its only fundamental can come from flag waving and the falsehood that major dollar holders are dollar bound by size.
The synthetic short based on the dollar carry trade is nonsense in light of the Fed’s need to continue QE to infinity regardless of the daily bull about draining.
The dollar is the most fundamental of all markets because of the size and desire for a means of diversification.
All you need to do is to keep a weekly record of what China is spending on energy and materials to know dollar diversification is a simple business tactic for nations lacking debt.
Few have granted that the outlaw banksters have a large problem with their trillions of dollars. What you are forgetting is to be crooks of this magnitude they have to be damn smart. You can be sure that as a minimum they are already diversified in their dollar holdings and are at a minimum 50% non-dollar. You can also be sure they have 5-10% in gold and that percent will move higher. People that can rip off the world surely anticipate and care for themselves. To think otherwise is foolish.
Gold is going to $1224, onward past $1274-$1278 on its way to $1650 before it moves onward to Alf Fields and Martin Armstrong’s numbers.
The US dollar is no safe haven and has no ability to insure buying power.
Respectfully yours, Jim


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