Sinclair - The US Will Be Cyprused & We Will See $50,000 Gold... April 19, 2013
Today Jim Sinclair spoke with King World News about the ongoing chaos and told KWN the world is witnessing something that has never been seen in history. Sinclair also warned that “the US is going to get Cyprused.” Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this remarkable and exclusive interview.
Eric King: “This was from Fed Governor Jeremy Stein’s speech, “If systemically important financial institutions or SIFI, does fail, the losses would fall on its shareholders and creditors, and taxpayers would have no exposure ... Perhaps more to the point for TBTF (too big to fail), if SIFI does fail, I have little doubt that private investors will, in fact, bear the losses -- even if this leads to an outcome that is messier and more costly to society than we would ideally like.”
Sinclair: “What he is saying is that the potential losses are so large, and he is referring to the more than one quadrillion dollars in legacy over-the-counter market for derivatives, that nobody could create that much money.
So what’s pending now is so large, and these statements from Stein are confirmation that Cyprus is in fact the blueprint in the United States for coming financial failures....
“Recent events have also revealed that the paper gold market is in failure right now.”
Eric King: “So their intention is to ‘Cyprus’ the United States?”
Sinclair: “Yes. No question about it. It’s the legacy over-the-counter derivatives that are coming in for some adjustment that can’t be made, and the fractional reserve gold system has failed.
There is no gold there to deliver. What first gave rise to this was the German situation, but then when ABN AMRO shut gold deliveries down it accelerated. The reason they blasted the gold market was to camouflage the fact that the fractional reserve gold system, which is very important to financing and to the government, failed.
The truth is that when we take out these futures markets on a failure, gold is going to $50,000. Not $3,500. $50,000. We are in the midst of a failure right here, right now. That’s what this is all about. This takedown has been the ultimate can-kick.
This has been to stop the revelation of what the central planners are so panicked about, and the fact that the US is going to get Cyprused. They have now manufactured a situation right here at this point in time where it is almost impossible to save yourself.”
Sinclair is sounding pretty shrill these days. In late March he was calling the bottom for gold correction at $1,554 and saying sell at $4,400. Now that gold has taken a dip to $1,320 he is pitching GREED with his $50,000 call. He sounds desperate.