The dollar is flashing signs of an imminent collapse
"We are seeing a massive transition of wealth from the dollar to silver and gold." 



Please read this very carefully... "Alan Greenspan spoke at the Council on Foreign Relations earlier today, and what was his advice? That central bankers should be doing what these columns, among others, have been rattling on about, namely that they should be paying attention to gold. “Fiat money has no place to go but gold,” the former Fed said at the Council."  Needless to say, this entire editorial which isn't too long and is headlined "Greenspan Warns on Gold"... is well worth your time... and the link is here.

Government falsifies economic data, suppresses gold, Bob Chapman says

 

Change You Can Chart: 2009 US Poverty Rate Highest Since 1994, 43.6 Million Americans Living Below Poverty Line

 

RealtyTrac Reports Bank Repossessions Hit All TIme Record, As Foreclosures Resume Rise

 

 Not even close to peaking yet...More "Change You Can Believe In"
Why Home Foreclosures May Not Have Peaked Yet


Foreclosures Rise; Repossessions Set Record

International Demand For Gold Evident

Posted: Sep 16 2010     By: Jim Sinclair      Post Edited: September 16, 2010 at 1:50 am
Filed under: General Editorial
Dear CIGAs,
I just arrived in Dubai and am expecting to attend a meeting later today only one inviting hour from Oman.
It is 7am and already the gold store here is three deep with clients. The demand for gold is international with a superior understanding of its status as the currency of last resort.
The ability of the paper gold exchanges to be the playground of gold banks is now quite limited in time. Gold’s break to a new high, regardless of the machinations of the manipulators, indicates that ballistic move to $1650 is now within easy reach, as was $887.50, the true high for gold in 1980.
Those persistent little buggers short of gold shares are about to have the spiritual payback experience for what they gave us.
It is time when fabrication, manipulation, and pretend and extend no longer control markets and influence economics. Confidence in an all powerful Federal Reserve is about to implode.
I sent you a message to strap yourself in as this repeat of 1979 is about to take gold to $1650 and beyond.
Respectfully,
Jim in Dubai

Jim’s Mailbox

Posted: Sep 16 2010     By: Jim Sinclair      Post Edited: September 16, 2010 at 1:50 am
Filed under: Jim's Mailbox
Jim Sinclair’s Commentary
China is in charge of rare earths, strategic metals and materials.
They have a 100 year economic plan. The West does not have a viable economic plan for tomorrow.
The entity that has no plan is the most creative of all because it gets exactly what it wants – NOTHING.
Jim,
Here is a chart on rare earth elements and gold. Check out the trend energy surge
CIGA Eric


Jim,
The US dollar can certainly hit .72 by January. In fact .76 by October would not be out of the question, followed by a bounce, then a downward move toward 72.
There is an immediate death cross in play with the 50 day moving average about to cross the 200 day to the downside.
Hope you are enjoying your trip.
CIGA Dr. Bob

Jim,
Can you believe AngloGold is just now getting around to cancelling their gold hedges at a cost of $1.37 billion!
Their hedging contracts were set at an average gold price of less than $450 an ounce!!
UNBELIEVABLE!!
Best regards,
CIGA Black Swan

Dear Black Swan,
I can believe it.
I spent six figures between 2000 and 2002 advertising in the London Mining Journal and Mining Monthly plus a South African publication telling them that this was going to happen.
The master dumbbells in the price of gold are those egomaniacs that call themselves MAJORS. Major what?
Regards,
Jim

Gold Miners ETF – Breakout CIGA Eric
Breakout!
Rising trend energy has been forecasting a breakout since May 2010. The chart below illustrates the minimum measured move of the cup and handle formation.
Gold Miners ETF (GDX):
More…




Retirement on Hold: American Workers $6 Trillion Short CIGA Eric
This required a study? The American household is over leveraged to USA, Inc. USA, Inc is currently being debased to protect interests other than American households.
The study, conducted by Boston College’s Center for Retirement Research, says savings have been squeezed by declines in stock and housing values.
Source: finance.yahoo.com
More…




States cutting benefits for public-sector retirees CIGA Eric
An outcome that will be replayed in nearly all States across the U.S.
After telegraphing his intentions for months, Christie spelled out the details of his proposal Tuesday. They include: repealing an increase in benefits approved years ago; eliminating automatic cost-of-living adjustments; raising the retirement age to 65 from 60 in many cases; reducing pension payouts for many future retirees; and requiring some employees to contribute more to their pensions.
"We must reverse the damage caused by fairy-tale promises that have fattened benefits and pensions to unsustainable levels," the governor said.
Source: finance.yahoo.com
More…




Jim,
Forget your $1650 gold target!
Fire, fire, fire… Soros is again moping on TV and the financial headlines are about gold being in a bubble!
Maybe he should take you up on that old million dollar bet and donate his winnings to charity. Oh wait a minute, what’s that? Last time he was warning about a gold bubble he had actually doubled up his bet on gold!
Like I said, forget $1650 gold because you will be right as you were in 1980 and gold will be looking further beyond to numbers more in Alf and Armstrong’s territory.
CIGA "The Gordon"

Dear CIGA "The Gordon:"
Bubble? My behind!
Soros should take a side trip to Dubai and make his statement at the gold store as he is trampled by those that want a currency devoid of liabilities.
Regards,
Jim

Soros warns on gold rally, says nothing safe By Emily Chasan and Herbert Lash
NEW YORK | Wed Sep 15, 2010 5:49pm BST
NEW YORK (Reuters) – Billionaire financier George Soros said on Wednesday that gold prices might continue to rise after hitting record highs this week but he renewed a warning that gold is the "ultimate bubble."
Soros said that with economic and fiscal weakness crimping the developed world all investments are at risk because "this is a period of great uncertainty so nothing is very safe."
Soros also said that after asset classes set new highs there are almost always immediate reversals that disappoint investors. Soros’ hedge fund, Soros Fund Management LLC, has been heavily invested in gold and gold-mining companies.
More…



George Soros buys gold despite dubbing it ‘ultimate bubble’
George Soros doubled his investment in the world’s largest gold fund – just weeks before claiming investing in the precious metal is now the "ultimate bubble". By James Quinn, US Business Editor
Published: 10:44PM GMT 17 Feb 2010
Mr Soros – a legend in investing circles for his $10bn (£6.37bn) bet against the pound in 1992 which forced sterling out of the European exchange rate mechanism – increased his stake in the SPDR Gold Trust in the last quarter of 2009.
Regulatory filings show that his $8.8bn investment vehicle, Soros Fund Management, raised its stake in exchange-traded fund SPDR by 3.7m shares to 6.2m shares in the three months ending December 31, 2009.
The new shares were bought at a price of $421m, taking his total holding in the fund to $663m at the end of December.
More…



"Argentines Buy Now as Inflation Outlook Buoys Sales".  Argentines are stepping up purchases of cars and televisions in a bid to beat inflation that consumers see accelerating to 25 percent, the second-highest in the world after Venezuela.  The link to this story is here.


'Death Spiral' Besets State Pensions Benefits Grow.  This story is definitely worth your while... and should be no surprise to anyone.  The link is here.

Americans Enjoying Final Days of Artificial Economy

 

In recent days, Japan has intervened in the foreign currency market to artificially drive down the value of the yen. Japan's actions to weaken the yen have driven it from 83 to 85.73 against the U.S. dollar. Most analysts in the mainstream media are portraying this as Japan's attempt to "head off a deflation spiral". Almost everybody is applauding Japan's move, saying it was needed in order to "shore up its export-driven economy".

 

The truth is, although Japan claims to be helping Japanese citizens with this move, Japanese citizens are the ones who will actually suffer. Despite Japan's economy entering into recession last year, the Japanese were able to maintain their same standard of living because prices were falling due to their strong currency. Some of the largest Japanese exporters like Toyota and Sony saw their revenues decline last year by 20.8% and 12.9% respectively, but this was only bad for shareholders of these companies. Despite rapidly declining revenues for Japanese exporters, Japan's unemployment rate only reached a peak of 5.6% last year and is now down to 5.2%.

 

The Japanese should be happy and grateful for how strong their economy is compared to the U.S. economy. When it comes to exporters in Japan, their problem is not the strong yen, but the weak U.S. dollar. If Japanese exporters allow the U.S. dollar to collapse, their revenues will continue to decline substantially, but that is a healthy part of a free market economy. Within a year or two, a strengthening yen would allow the Japanese to spend more on their own goods, and revenues for Toyota and Sony would come back strong.

 

Japan's efforts to postpone a few Japanese corporations going through a brief but tough readjustment period are helping to artificially prop up the standard of living for Americans one last time. NIA believes that the Japanese better be careful what they wish for. Never before in world history has nearly every developed country been in battle with each other to have the weakest currency. Asian producing countries want their currencies to be the weakest so that they can have the honor of shipping their products to Americans who can't afford them.

 

Currencies are very fragile, especially when they are fiat and backed by nothing. NIA believes that nearly all countries around the world with fiat currencies are currently making the grave mistake of doing everything in their power to debase them. Even a five year old child, if you asked them if they want the money in their piggy bank to be worth more or less, would have the common sense to say more. The world's politicians either don't have this same common sense or they are being paid off by the management of export giants.

 

Although China recently made the wise decision to allow the yuan to strengthen, they haven't allowed the yuan to strengthen fast enough. China is now facing a price inflation crisis that will soon spread to the U.S. Consumer prices in China rose by 3.5% in August compared to one year ago, the largest increase in nearly two years. On a month-over-month basis (including seasonal adjustments), consumer prices in China rose by 4.8% in August over July.

 

Workers at a Honda plant in China recently went on strike over wages and work conditions. The Chinese have had enough of slaving in factories for $30 per week while Americans sit home on their couches, collect $400 per week in unemployment benefits, and consume the goods that the Chinese make. Chinese manufacturers are now being forced to increase the wages they pay to workers and these costs will be passed on to American importers of Chinese goods like Wal-Mart.

 

Wal-Mart recently eliminated their "rollbacks" on grocery items in the U.S. Grocery prices at Wal-Mart rose by a shocking 5.8% in July from June. In fact, some items in Wal-Mart like a 36-ounce bottle of Windex and a 12-ounce box of Quaker Oats rose in price by 51% and 66% respectively in July over June. Considering that in 29 states, Wal-Mart controls more than half the grocery market, almost all Americans are beginning to feel the effects of massive price inflation.

 

With 70% of the goods sold in Wal-Mart made in China, NIA believes that Wal-Mart's massive price increases for grocery items will soon spread to all other items sold. It is crystal clear for us to see what is ahead for U.S. prices of consumer goods, yet the mainstream media continues to talk about deflation. Cotton prices have surged 28% during the past two months to their highest level in 15 years. That alone guarantees higher clothing prices, but combined with the wage situation in China, Americans could see an unprecedented surge in clothing prices in the months to come.

 

A massive outbreak of price inflation is already taking place all around us, as Americans enjoy their final days of our artificial economy that is being propped up by China and Japan. Some people say China and Japan continue to buy and hold U.S. treasuries because of our overpowering military presence, but when they start dumping our treasuries and the bond bubble bursts, the U.S. military regime will come to an end. A U.S. societal collapse is coming and NIA will expose the truth in its over one hour long documentary coming in late-October. This documentary will be talked about around the world for years to come. If you would like your friends and family members to be the first to see NIA's new upcoming documentary, please tell them to become a member of NIA for free at http://inflation.us