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Annihilation of U.S. Dollar Coming - Jim Sinclair

By Greg Hunter’s USAWatchdog.com
October 30, 2013


http://youtu.be/8IQ_TBJHrcU

Renowned gold expert Jim Sinclair says financial calamity is just around the corner for America. Sinclair contends, “We are facing the annihilation of currency. We are facing the shift of America as the leading and most influential nation of the world to some form of banana republic. . . . If it wasn’t for food stamps, we would be facing long lines of people waiting for free food.” For gold, everything hinges on the U.S. dollar, and Sinclair says, “I think the dollar gets hammered. I believe we are headed for hyperinflation.” One of the many black swans, according to Sinclair, is the possible abandonment of the U.S. dollar by Saudi Arabia. If Saudi Arabia stopped selling oil only in U.S. dollars, what would that do to the buying power of the buck? Sinclair says gasoline would be “$10 a gallon very soon, without a doubt.”

Sinclair predicts retirement funds and bank deposits are going to be taken by the government. How much of your money could you lose? Sinclair says, “In Cypress, it was a total of 83%. . . . Cypress is the blueprint, and it’s what we are going to experience here in the United States.” Jim Sinclair, who has just accepted the position as Chairman of the Advisory Board for the establishment of the Singapore Gold Exchange, says, “The exchange will trade physical gold only and not future gold. . . . You have to make delivery.” Meaning, there will be no naked short selling or manipulation of this new market. Sinclair says, “This will emancipate gold from the paper price.” How high will gold go? Sinclair predicts, by 2016, “Gold will be $3,200 to $3,500 an ounce.” By 2020, Sinclair predicts, “Emancipated gold will be $50,000 per ounce.” Join Greg Hunter as he goes One-on-One with Jim Sinclair of JSMineset.com.

www.usawatchdog.com




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Thank you for sharing

Thank you for sharing this...I'll have to watch it again to absorb what he is saying... When Sinclair predicts 50,000/oz. In what currency will this be likely to be based on after the big reset?? Also I notice he did not make any reference to silver. Where will that stand in relationship to gold?? According to Karen Hudes, US is holding 275000 tons of gold in bank of Hawaii vault. How will this effect the positioning of the USD in coming years?? I am such a layman with very little understanding of it all. Do I sell my house (asset) or not? What exactly does he mean when he advises to "get out of the system"?

Back in 2008 I remember

Back in 2008 I remember hearing all these predictions about the price of gold from Sinclair here on the DP. His predictions were 2-3 years out. And he got it right.

I didn't read through or watch the details of this report yet, but my guess is there's a good chance he might be right yet again.

...

In 2011, Sinclair said that

In 2011, Sinclair said that gold would be 3500 by 2012 end, right?

Peter Schiff said gold would be near 10,000 now, and said last year that gold will be 5,000 by 2014 end.

Ron Paul has said that gold will skyrocket...and not just in 2006. He's said it in the 80s, 90s, 2000s...I remember him saying Silver would be worth over one hundred.

I can understand that the market is difficult to time. However, if you keep on making the same prediction every year, and then boat about the one time it works and forget the dozens it doesn't, you're nothing better than a broken clock.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

SteveMT's picture

History is on Sinclair's and Schiff's side.

No one knows when, but they both know that the dollar will inevitably fail because of history. No fiat currency has ever survived in the history of the world. The financial world is a powder-keg of debt or haven't you noticed? Portugal, Italy, Ireland, Greece, and Spain spells PIIGS for good reason. Every country is holding other country's debt just like a Ponzi Scheme. One going will cause all to fall, like a house of cards or a row of dominoes. This is Economics 101: Countries or people cannot borrow money to pay off debt.

"No one knows when, but they

"No one knows when, but they both know that the dollar will inevitably fail because of history."

As I said, in that case, gold has also failed. There have been many times where if you held gold, your purchasing power got killed. I mean, from 1980 to 2002 the price of gold dropped, right?

"No fiat currency has ever survived in the history of the world."

Not all fiat currencies are the same.

"The financial world is a powder-keg of debt or haven't you noticed? Portugal, Italy, Ireland, Greece, and Spain spells PIIGS for good reason."

Those guys DIDN'T HAVE FIAT CURRENCIES! They had to BORROW Euros to spend...they couldn't just create their own money.

"Every country is holding other country's debt just like a Ponzi Scheme."

If everyone is equally indebted to each other, isn't there then no debt?

"One going will cause all to fall, like a house of cards or a row of dominoes. This is Economics 101: Countries or people cannot borrow money to pay off debt."

Again, you don't understand how the fiat system works. The US doesn't have to borrow to spend. Austrians and Keynesians seem to simply ignore this point, because they don't like it.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

SteveMT's picture

Gold will never be worth zero.

All other fiat currencies have ended at zero. When a country starts debasing their own currency, they don't know when or how to stop.

Gold has never failed. Greece, Rome, and the US all took the gold and silver out of their money, and they replaced it with empty promises. It's called debasing the currency. The last act of a corrupt government is to debase its own currency. Why are you pretending not to know these historical facts?

Just to take the devils advocate for a minuet

"If Saudi Arabia stopped selling oil only in U.S. dollars, what would that do to the buying power of the buck?"

If Saudi Arabia stopped selling oil only is U.S. dollars, what would that do to Saudi Arabia?

To quote E, BOOM! LOL

USD is already Annihilated

Question is: what are YOU going to do about it, for the sake of yourself and your family?

____

"Take hold of the future or the future will take hold of you." -- Patrick Dixon

Silver is the people's choice

http://www.dailypaul.com/304186/silver-outsells-gold-751-in-...

Remember that central banks do not hold silver

Here are twelve key differences between gold and silver:

1. Central Banks Don’t Hold Silver.

Gold and silver have long been considered money. Central banks, however, do not hold silver. All central banks hold gold as part of their reserves. Recently, central banks have been net buyers of gold.

http://smaulgld.com/12-ways-silver-is-different-than-gold/

Please subscribe to smaulgld.com

Gold bugs

have been predicting the dollar collapse for over ten years.

The dollar is declining and a catastrophic failure is likely but if it happens everybody loses big. A slower more gradual decline, is actually happening, and I expect that will be the way it is going to play out.

Exactly what is going to,

Exactly what is going to, 'annihilate,' the US Dollar?

Debt? That's a joke, right?

And what is going to replace the US Dollar?

Gold? Are people going to start buying Big Mac's with gold bullion or silver coins? No.

When the FED bailed out overseas banks and businesses in 2008 with $16 trillion in loans, America itself was $16 trillion in the hole.

Think about it...the FED has printed so many dollars out of nothing one would think they'd be worthless by now, but they're not. They're hard to come by and not easy to earn legally.

All of the, 'dollar collapse,' rhetoric is starting to sound like the global warming advocates who think the sky is falling.

MONEY is of the mind. It's more psychological than physical. The US currency practically invented the credit card.

And Benjamin Franklin hated the Gold Standard because it did not provide the colonists with enough...money. So they created their own money out of nothing, called it colonial script and wealth and prosperity ensued.

http://1zipmont.wordpress.com/the-status-quo/the-founding-fa...

“That is simple. In the Colonies we issue our own money. It is called Colonial Script. We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers. In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one”.

1764, the production of Colonial Script was made illegal by the Currency Act, passed into law in England (of course due to pressure from the Bank of England) prohibiting the Colonies from issuing their own money, ordering them to use only the money that was provided (in insufficient quantities) by the English bankers. Benjamin Franklin said,

“In one year, the conditions were so reversed that the era of prosperity ended, and a depression set in, to such an extent that the streets of the Colonies were filled with unemployed”.

---------

Contrary to popular opinion, the American economy became the most powerful, wealthiest country on earth because our currency was NOT tied to the Bank of England's gold standard.

Never be afraid to ask simple questions.

The $16 Trillion in loans

you mention were a one off event. Compliance assured by the US military ie buck us on this and you will end up like Sadam or Khadaffi.

Well the rest of the world is calling the bluff. Our allies are turning there backs on the US Dollar. China stopped buying US debt just a few years ago. Now they are selling Treasuries.

The USS Petrodollar is colliding with a huge glacier and that screeching sound is a hole being ripped down her side.

Think slow motion train wreck. Just because it's slow doesn't mean it isn't real.

Debbie's picture

Yes, and it also does not mean that it will always be slow

motion; that it cannot get out-of-hand. Has to do with loss of confidence, I believe.

Debbie

SteveMT's picture

Exactly right, Debbie. The end will come quickly.

"How did you go bankrupt?" "Two ways, gradually and then suddenly" -Ernest Hemingway

why do I find your post humorous?

"zooamerica"

and it was chosen to represent oneself at the DP.

And when this happens,

And when this happens, bitcoins will be about $100k each if not much much more.

bitcoins backed by nothing is worth nothing in a depression

think of bitcoin like a stock, not as a currency.

Silver and Gold are backed by

Silver and Gold are backed by nothing either. Except what people are willing to pay for it. Just like bitcoins.

SteveMT's picture

Silver and gold are value based. They stand alone.

It is the dollar and every other monetary system presently in existence that have nothing standing behind them. The metals back themselves up.

And at least Bitcoin enjoys

And at least Bitcoin enjoys "invisibility", liquidity and portability.

Hmmm

I think Bernanke, Yellen, Greenspan are the Wacko birds

Resolve This Contradiction

The dollar is going to collapse, yet the government wants to confiscate bank deposits denominated in all those 'worthless' dollars. Makes absolutely no sense. It may be one case OR the other, but not both.

SteveMT's picture

What is the difference between us & Zimbabwe?

The reserve currency is the only thing. The bankers want to prolong this Ponzi scheme as long as possible. This is why everything has essentially been nationalized. Just follow the money. Healthcare is now nationalized, retirement accounts, 401ks, and bank accounts are next. Finally, the confiscation of real estate will occur. Enter the FEMA Camps and a world war to further reduce the surplus population by 80%. That is the Agenda for the 21st century.

There's Another Difference

Zimbabwe did not have to sell bonds in order to print money. Their "treasury" could do it directly. If Zimbabweans had carried as much personal debt as Americans do, they would have benefited by paying off their McMansions with worthless currency. That's why hyperinflation won't happen here in America until all of the excess debt/credit is eliminated. The contradiction remains.

Well, no. Let me give you

Well, no. Let me give you this analogy, which may not be perfect, but will have to do since I just thought of it now.

Let us say that the entire economy is based on the sale of corn. There are $100 dollars in the economy, and 100 corns produced each year (meeting the demand of the economy), which everyone just buys from each other. So, the price of corn will be, in this incredibly simplified example where everyone simply produces corn and for some reason also buys it from one another, is $1 per corn.

Now, let us say that the government spends $10 to give some poor, unemployed people, who were going to die of starvation, I guess, corn. The demand for corn rises, obviously. While at face value, corn should now be valued at $1.10/corn, what actually happens is that more corn will be produced. Presumably, the corn-producers will hire those poor, unemployed people to produce that corn. Corn production rises, hopefully in such a cycle that is permanent (new wages put into the economy provide the new $10 that will also provide the $10 of corn purchasing). Maybe that increased nominal buying causes overall demand to naturally increase.

What happened in Zimbabwe, is that the corn fields all burned. So now, you have 100 dollars chasing ten corns. Bam, inflation. Plus, then you get real loss of confidence(people get scared that more damage will happen and maybe there is only one corn). Or, even if you magically stabilize your corn production overnight, people get scared that the loss of corn can happen again, and no longer operate with the assumption that your currency will maintain its value (that is, since the aforementioned cycle failed, people assume it will fail again).

What happened in Germany, was because they had to pay nominal debts, they simply printed money. And when that money hit the economy, production could not rise to meet it. In the corn example, if there are no un or under-employed people available, how are you going to increase corn production? Maybe you can do it long-term with improvements in production, but where will the funding for that come? Short-term, one cannot reach the production required, and you have inflation.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

SteveMT's picture

Well, yes. No one else was buying Zimbabwe's debt.

They were going it alone. There was no one else willing to take any risk with Zimbabwe. They didn't have any "sugar daddies" like we have with China, Japan, Germany, and Britain buying our debt. Even if none of those theoretical corn fields of yours burned, the same thing would have happened only not as quickly.

No fiat currency has ever survived in the history of the world. Don't you know that? Why do you embrace an abject failure used only as a means for the elites to enslave the world?

"They were going it alone.

"They were going it alone. They was no one else willing to take any risk with Zimbabwe. They didn't have any "sugar daddies" like we have with China, Japan, Germany, and Britain buying our debt. Even if none of those theoretical corn fields of yours burned, the same thing would have happened only not as quickly."

See, this is the mistake you make. You have no idea if this is true. You just assume it to be true. The US government does not need to borrow money to run deficits. As long as the US does not run so many deficits to cause too much inflation (therefore reducing the real yield on dollar-denominated assets), there is no reason for individuals to not buy US debt (in general. They can always fear that the US government is overthrown, etc.). Rates will only go up if people fear no payment, that inflation will eat away real rates, or if more competitive forms of investment arise on the economy (which was why rates were higher during much stronger US budgets in the Clinton years).

The reason that the Zimbabwe dollar became inflated, was that there was no productive capability of the Zimbabwean economy to meet the newly printed currency. Hence, investors become scared of buying Zimbabwe-currency denominated assets, because they are afraid that the same thing will happen. The same thing happens with some countries like China, were people are worried that the government will be overthrown, and their debt will be repudiated.

In the US, where is the evidence that the US will have hyperinflation? Where is the evidence that productive capacity will be suddenly destroyed? We're much more well-protected against supply shocks than Zimbabwe was.

I can easily say that no gold-backed currency has ever survived in the history of the world. How do I know this? There aren't any.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a

SteveMT's picture

No fiat currency has ever survived in the history of the world.

No fiat currency has ever survived in the history of the world. Don't you know that? Why do you embrace an abject failure used only as a means for the elites to enslave the world?

My Warning About Jim Sinclair


http://youtu.be/Ped9BrJ5lmg

Give me control of a nation's money and I care not who makes the laws - Mayer Amschel Rothschild

Silver is it

I am buying up silver coins every time I have a few dollars to spare and hiding them. The crash is coming. I never read the book and always thought the slippers were Ruby Slippers. Why did they change it in the movie?