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.
Today a legend in the business told King World News there is a massive run on physical gold and silver at UBS in Switzerland and Scotiabank in Canada. Keith Barron, who consults with major gold companies around the world and is responsible for one of the largest gold discoveries in the last quarter century, spoke about this remarkable situation and what it means for investors. Below is what Barron had to say in part I of this exclusive interview.
Eric King: “Keith, KWN has been reporting on shortages of bullion that are already developing. What do you make of the run on physical gold and silver that’s happening here?”
Barron: “There is absolutely no question that this was an orchestrated takedown in gold and silver the last few days. We already know that ABN AMRO had gold missing, I believe it was out of allocated accounts, and they wanted to give people cash instead of returning gold bars to them.
At the Bank of Nova Scotia in Toronto the gold window has been absolutely swamped. I have confirmed there were people lined up in droves recently for multiple-hours at a time to buy gold and silver bars and coins....
“I then confirmed with UBS today in Zurich, Switzerland, that they are experiencing exactly the same thing. They told me people are waiting in long lines for bullion related bars and coins. The physical market is incredibly tight, and there is a huge buying opportunity right here.
The damage in gold will not be long-term because physical supply is already drying up. Asian countries have been aggressively buying gold. This really is an unprecedented opportunity for investors. This takedown in the metals has created incredible demand for both gold and silver, and anyone who wants to unload dollars or euros and put them into gold because they don’t trust the currency, now is the time to do it.”
and to hold your Money in the bank which they use to hold down the Goldprice .
If you really want higher Goldprice then stay away from every paper Gold scam . The only way to push the goldprice higher is to buy it in physical form wgich yiu reduce from the market everything else is hurting the goldprice .
Please be smart Folks and dont lett the trolls here mislead you ..
Sentiment: Strong Sell