O.K., it’s time to make things simple, to focus on where we are headed, also called “the big picture.” Japan’s economy is in the dumps and has been for two decades. Europe is on the edge of something horrific. The US is hanging on only because the Fed had decided to support the banks and keep the real estate market, the stock market and the economy from imploding before the election and their tool is Quantitative Easing! They can support the economy or the dollar, but NOT BOTH. Which will it be? When you answer that question, everything else becomes clear and your choices are easy.
Bernanke has publicly stated, more than once, that he will hold interest rates at zero until 2015. There you have it, clear and to the point. The Fed will support the economy at all costs, and are willing to sacrifice the dollar, period!!! There is nothing else to focus on. Everything else is noise and short-term nonsense. Either the dollar plunges or the economy and the bond market collapse. It must be one or the other, period!!! Don’t make it more difficult than it is. The dollar or the bond market! If the Fed continues to purchase US Treasuries to hold interest rates at zero, the dollar is doomed, and as Jim Sinclair has told us for years, the dollar is headed below .70 on the USDX, on the way down toward .60 or lower, at which time the dollar will LOSE RESERVE CURRENCY STATUS – God Help Us!
Don’t debate this. It is one or the other. Either the Fed supports the bond market with QE to infinity or they support the dollar; it can’t be anything else. The answer to this question is critical to your financial survival. I have done my best to make it simple for you, to try and open your eyes to what is unfolding. Forget the Mainstream Media; forget Wall Street and your financial advisor’s latest recommendations. Ask yourself which way will the Fed go? The answer is easy; they have repeatedly told you the answer. Zero interest rates till 2015 is all you need to know.
The world we live in is Sinclair’s QE to Infinity! You want to be out of dollars, period! I don’t care if they are in savings bonds, cds, treasuries, common stocks or cash. They lose. Gold wins. (And silver too). No matter what I write or what I present to you on a day-to-day basis, this is the bottom line and the end game. Everything else is noise. Remember the following two words LONG GOLD (till at least 2015).
There you have it. I can’t add anything of importance to this essay; it is the bottom line and the big picture. Take what I have to say very seriously. I am telling you the way it is. I am not wrong!!! You have the blue print to the road to riches or the road to ruin. Which will you take?