With global markets having had a strong selloff and showing massive volatility, Greg Hunter interviews Jim Sinclair to get his take on things. Jim is widely respected for having called the top of the gold market way back in 1980. In the early 2000's when gold was trading under $300, he predicted that gold would hit $1650. Gold actually exceeded his prediction moving to $1900. Jim's blog site was one that started me on my own journey to try and learn more about all this over a decade ago.
In recent years Jim has done very few public interviews. Now he is stepping forward because he feels the market drop we have just seen is a warning signal of a much deeper crisis to come. Jim talks very openly in this interview and if you know him at all you know he cares very much about what happens to the average person. He has been kind to offer me his thoughts by email for many years. This is an interview we will need to revisit in November to see how things are going.
Below are some quotes from the summary of his interview. You can view the interview here on Greg Hunter's site.
----------------------------------------------------------------------------------------------------------"Legendary gold expert Jim Sinclair says what is going on right now in the stock market is just the warm-up act. Sinclair contends, “This is a pre-crash, and we are not making it through September without the real thing. Everybody is on credit. Main Street is on credit. This seems to be a bubble of historical proportion when it comes to the amount of money supporting the accepted lifestyles as being the new normal. Raising interest rates is impossible today. The market is so fragile. Nothing can come out that causes people any concern or derivatives any change, nothing whatsoever. We are going through a period of time where expecting nothing meaningful is a dream. These are times never experienced in financial history. . . .It is very possible that we are going to have a super civilization change. ”
"The US Plunge Protection Team is losing control of the markets, and Sinclair warns, “They got the dickens scared out of them. They actually backed off providing the funds necessary. . . . That’s your warning. The warning is markets can overrun plunge protection teams. Markets can and will overrun the manipulation of metals and currencies. The market will overrun the false strength in the US dollar. The idea that a lift in interest rates would be beneficial to the dollar is absolutely incorrect. We do know the limits of the Plunge Protection Team, and we do know the omnipotent power of the Fed is a total fallacy.”
On gold, Sinclair says, “I didn’t call the top in gold in 1980 because of any kind of a system. I was told, I acted on what I was told.”
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My added comments:
Jim is certainly not alone in forecasting a severe crisis coming this fall (September-October time frame). Bill Holter who writes on Jim's blog is one who agrees. Because I follow dozens of sites all over the internet in doing research for this blog, I am pretty well aware of the wide range of views out there on this. There are a number of respected analysts who agree that this fall we will see a more severe crisis (here is another example). Many religious based sites are expecting this due to a number of dates with historical religious significance coming up soon (Shemitah is one one example).
Experts we feature here often like Jim Rickards and Nomi Prins are also expecting a severe crisis, but they do not try and put a specific time frame on it. They simply think it could begin at any time in the next 2-3 years. So they will not be surprised if we get one this fall, but will not be surprised if it comes later than that either.
Other experts we talk with do not expect a major crisis any time soon or believe that the tools exist to manage one if it does happen. This conflicts directly with Jim Sinclair's view above. He believes the crisis is coming soon and will not be manageable. Jeffrey Saut of Raymond James offers a more optimistic view of the market on King World News here.
We do not try to make forecasts here. What we try to do is present a variety of credible expert views and let readers decide for themselves. Clearly, we will have an opportunity in the next couple of months to test out the severe crisis forecasts being made for the September-October time frame. By the end of October, we will know if those forecasts were accurate or not.
In regards to the two big questions we are following here:
1) Will we get another major financial crisis bigger than the 2008 crisis?
2) Will the SDR use at the IMF become a global reserve currency?
we will follow events this fall to see what happens. If we do get a major global crisis bigger than 2008, we need to see how that is resolved. Will the SDR used at the IMF be put forward as the answer? Jim Rickards predicts it will. Jim Sinclair predicts it will not. Will gold come into play or not?
Readers here need to pay close attention to what solutions are put forward to resolve a major global crisis if we get one and watch to see how the public reacts to the proposed solution. Will they accept it or reject it? That is what we are following here.
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