RBS tells clients to prepare for 'monster' money-printing by the Federal Reserve. Here is a quote: "We cannot stress enough how strongly we believe that a cliff-edge may be around the corner, for the global banking system (particularly in Europe) and for the global economy. Think the unthinkable."



Debt Crisis Cannot Be Manipulated Away Posted: Jun 28 2010 By: Jim Sinclair Post Edited: June 28, 2010 at 4:25 pm
Filed under: General Editorial

Dear Friends,
If the market for gold had not done its runaway/runaway common to overleveraged long morons, it would have broken out of the neat cup and handle formation going on to $1650. It will definitely break out of that formation.
The short term bullies that manipulated today’s market cannot manipulate the reality of the debt crisis away.
Today was the do or die takedown in gold by the mega hedge fund traders using the gold banks as beards for maximum effect. It was that because of the cup and handle formation. I know because I used to do the same thing on the other side.
Back in the 70s when the Middle East was the major buyers of gold they used a certain German bank as their broker constantly. When I wanted to run a large short position into oblivion, I used the same bank as buyers that represented the Middle East.
Nobody wants to buy or sell, only manipulate price, when they bid ten times what the offering is or offers ten times what the bid is in an open outcry market.
You have witnessed a pure operation by the bear hedge fund, just the same ones that are short of the junior and intermediate gold shares.
What has been painted in the gold market is also being attempted in the gold sharers. In time the futility of this will be very evident.
Respectfully, Jim


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Derivatives Blow for Wall Street Banks Under Historic US Reforms. Translation: The congresscritters don't understand derivatives, and the legislation will do little to prevent a massive derivatives implosion that is likely in this decade.


The Next Catastrophic Bubble to Break Will be Private Sector Debt.


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High Court’s Big Ruling For Gun Rights


IL Borrowing $900M as Credit-Default Cost Doubles- Bloomberg


Jim Sinclair’s Commentary
Illinois is going to seek major funds in the debt market. The price of credit default derivatives has doubled and Illinois continues to look awful.
CDS OTC derivatives are about to slam more than 40 states.


Jim Sinclair’s Commentary
Just in case you missed it, three more bank closures on Friday brought this year’s total failures to 86 so far.


Jim Sinclair’s Commentary
Don’t kid yourself for a moment, QE is going to infinity in the USA and elsewhere.
The G20 is only hot air to hold off CDS OTC weapons of mass financial destruction.

RBS tells clients to prepare for "monster" money printing by the Federal Reserve As recovery starts to stall in the US and Europe with echoes of mid-1931, bond experts are once again dusting off a speech by Ben Bernanke given eight years ago as a freshman governor at the Federal Reserve. By Ambrose Evans-Pritchard Published: 5:11PM BST 27 Jun 2010
Entitled "Deflation: Making Sure It Doesn’t Happen Here", it is a warfare manual for defeating economic slumps by use of extreme monetary stimulus once interest rates have dropped to zero, and implicitly once governments have spent themselves to near bankruptcy.
The speech is best known for its irreverent one-liner: "The US government has a technology, called a printing press, that allows it to produce as many US dollars as it wishes at essentially no cost."
Bernanke began putting the script into action after the credit system seized up in 2008, purchasing $1.75 trillion of Treasuries, mortgage securities, and agency bonds to shore up the US credit system. He stopped far short of the $5 trillion balance sheet quietly pencilled in by the Fed Board as the upper limit for quantitative easing (QE).
Investors basking in Wall Street’s V-shaped rally had assumed that this bizarre episode was over. So did the Fed, which has been shutting liquidity spigots one by one. But the latest batch of data is disturbing.
The ECRI leading indicator produced by the Economic Cycle Research Institute plummeted yet again last week to -6.9, pointing to contraction in the US by the end of the year. It is dropping faster that at any time in the post-War era.
More…