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."
It is the safety net programs financed by ponzie debt that mask the current depression conditions that exist in America. We have roughly a trillion dollar deficit that is bringing future economic activity forward or another way to look at it is net of deficit GDP is 7% less than reported or negative 5%. We have $17 trillion in debt that represents a little more than a year's worth of GDP that has been brought forward over the past. The great recession continues and quite possibly, the second depression is well underway. What cannot be paid will not be paid and when that point comes, things are going to be ugly.