US Dollar Nosedives Through .7700 USDX

Posted: Oct 13 2010     By: Jim Sinclair      Post Edited: October 13, 2010 at 11:15 pm
Filed under: General Editorial

My Dear Friends,
The US dollar just blew through .7700 USDX on the downside.
It now sits at .7671
Currency induced cost push inflation is upon us.
Gold is going to $1650 much faster than most of you anticipate.
Respectfully,
Jim
Click chart to enlarge today’s USDX action in PDF format with commentary from Trader Dan Norcini



Jim Sinclair’s Commentary
The FASB will face the results of their capitulation to political prerogative. Simply stated, the FASB will be left high and dry holding the bag.
With the developments in the mortgage market, how can the FASB, the guardians of auditing, allow the financial entities to continue to value these fraudulent OTC derivatives at prices representing cost and above?
If you permit fraud the law says you have committed fraud. It is called conspiracy.
I wonder if each member of the FASB has thought about the pickle they are really in. It is a Wall Street tradition to roll over on your friends.
You can be sure that as 50 AGs go wild on this subject, FASB will suffer more than just embarrassment.
Time has come to protect yourselves FASB. When it all hits the fan you are going to be blamed for the next round of failures. You have to come clean on the real audit position of securitized mortgage debt instruments or face more than a simple disgrace.

 
Jim Sinclair’s Commentary
You want a better reason to explain why major ton buyers of gold are active? The kids simply will not play fair.

The Crowning Failure of the Old Governments
The world’s leaders gathered in Washington last weekend to try to address the global imbalances that continue to weigh on the economies of the world. It didn’t go well.
The IMF meeting, meant to lay the foundation for some greater co-operation on the co-ordination of national economic policies, instead ended in mutual recrimination. And that has made it harder to reach agreement at the gathering in Seoul next month of the Group of 20 industrialized and developing nations.
The heart of the disagreement is the "international currency war," as Guido Mantega, the Brazilian finance minister, called it three weeks ago. The media has focused on the verbal spat between America and China, but the beggar thy neighbor policies are being waged by dozens of nations around the world.
More…



Jim Sinclair’s Commentary
Anything is possible. Never say never.
One thing is for sure and that is $1650 is in the bag. It may be coming a lot sooner than anyone, except me, expects.

Is $10,000 Gold Merely an Interim Projection? October 13, 2010
For obvious reasons, there are few questions asked as regularly of precious metals commentators as “how high do you think the price of gold and/or silver can rise?” Before I look at what is implied when people ask that question, I will discuss the answers to that question – and what is implied by these estimates.
The starting-point is to go back to when the bull market began for precious metals, at roughly the turn of the millenium. At that time, the small number of informed, precious metals commentators who occupied this niche were “estimating” that the price of gold could hit $1000/oz – with the more confident/bullish pundits suggesting that gold might even reach $2,000/oz.
Skip-ahead to today, and now any experienced precious metals commentator who estimates $2,000/oz as a “ceiling” for the price of gold is seen as being extremely conservative. Veteran precious metals commentator, Lorimer Wilson, recently surveyed these analysts, to compile a list of such estimates – in order to set some parameters for these prices.
He found five commentators currently suggesting that the price of gold could eventually exceed $10,000/oz, nearly two dozen who chose figures between $5,000 – $10,000/oz, and than another dozen who had specifically chosen $5,000/oz as their price target. He added more than two dozen other estimates of between $2,500 – $5,000/oz – and didn’t include (or couldn’t find) a significant number of informed commentators expecting anything less than that.
More…



Jim Sinclair’s Commentary
Sure gold can hit $2000. I think you read that gold is the ultimate currency here 8 years ago.

Gold is the final refuge against universal currency debasement
States accounting for two-thirds of the global economy are either holding down their exchange rates by direct intervention or steering currencies lower in an attempt to shift problems on to somebody else, each with their own plausible justification. Nothing like this has been seen since the 1930s. By Ambrose Evans-Pritchard
Published: 6:01PM BST 26 Sep 2010
“We live in an amazing world. Everybody has big budget deficits and big easy money but somehow the world as a whole cannot fully employ itself,” said former Fed chair Paul Volcker in Chris Whalen’s new book Inflated: How Money and Debt Built the American Dream.
“It is a serious question. We are no longer talking about a single country having a big depression but the entire world.”
The US and Britain are debasing coinage to alleviate the pain of debt-busts, and to revive their export industries: China is debasing to off-load its manufacturing overcapacity on to the rest of the world, though it has a trade surplus with the US of $20bn (£12.6bn) a month.
Premier Wen Jiabao confesses that China’s ability to maintain social order depends on a suppressed currency. A 20pc revaluation would be unbearable. “I can’t imagine how many Chinese factories will go bankrupt, how many Chinese workers will lose their jobs,” he said.
More…



Bloomberg Trots Out So-Called Gold Expert:
Bloomberg Television trotted out Mario Gabelli as a so-called gold expert today.  King World News was informed shortly after the interview by one of the legendary gold traders that, “Mario Gabelli did not own a single ounce of gold during the entire 70’s bull run.  He missed the market completely.  Mario sat with me at the Columbus Club in the first quarter of 1980 and asked me if he should buy gold and I told him no.”
Here is a short summary of the wisdom from the Bloomberg interview:
To open the interview Bloomberg’s Tom Keene asked Mario, “Do you own gold?” 
Mario responded, “Right here” (pointing to his teeth).
Circling back to the legendary gold trader, he left us with this final thought, “The Gabelli Index is now in competition with the FT Index as the ultimate contrary indicator for gold.  As long as they trot these people out on the mainstream media, you can be assured that it is onward and upward for gold.”
Well there you have it, apparently we still have the green light for gold.
Eric King
KingWorldNews.com



Jim Sinclair’s Commentary
The headline to properly report this story is not simply 10 cities, but 80% of all cities in the USA by December 2011.

The First 10 City Pensions That Will Run Out Of Money
#1 Philadelphia

More…

Art Cashin On The Coming Hyperinflation

 

Jim Rickards On The Last Gasp Of The Fiat Money Regime

 

Bank Of America On Foreclosuregate: "Heightened Risk Of More Dismal Scenario"

 

Buffett's Pet Bank Joins The Fraudclosure Circus: Wells Caught Lying About Affidavit Practices After Clerk Admits She RoboSigned