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I really like Bill Holter’s essay from yesterday.  Miles Franklin is fortunate to have writers with as much talent as Bill Holter and Andy Hoffman.

Below are two King World News interviews.  You should read what Jim Sinclair and Dan Norcini have to say about the consequences of Japan’s massive QE policy and what it means for precious metals and global inflation.

I also urge you to read John Williams comments on Hyperinflation.  It is prudent to follow his views on this topic because if he is correct, you will not want to get caught with a lot of dollar assets on hand.  It’s like a game of “musical chairs,” and you don’t want to be the one left standing.  Subscribe to Shadowstats – it is a unique compilation of absolutely necessary, accurate data.  You can’t find it anywhere else. For $175/year, it’s a BARGAIN.

Once people lose confidence in the dollar, its fall will be rapid.  Japan is hyper-inflating now.  Their form of QE, on a relative basis, is roughly three times as great as ours.  The bail-in in Cyprus set a dangerous precedent.  Sinclair discussed it yesterday.  People are losing confidence in the banks – as their deposits are now fair game.  The dollar is no longer the world’s only “trading currency.”  The BRIC nations are expanding their mutual trade outside of the dollar.  The yen is gaining traction at the expense of the dollar.  If the Saudis decide to follow suit, the race out of the dollar will accelerate.  It is hard for me to believe that gold will not move up now, in this environment.  If gold still retains its “safe haven” status, and a few thousand years of history suggest it has, it should move up now.

Here is what Richard Russell has to say about the dollar’s dilemma:

Dow Theory Letter 1525 – April 10 2013

Headline from recent WSJ — “BRICS Nations Take Steps on Currency Trade, Bank.” The column continues — “Members of the BRICS group of emerging markets took steps to trade their currencies more freely and establish a joint development bank, seeking to counter the influence that developed countries exert over the global economy.” Russell translation — the BRICS nations (acronym for Brazil, Russia, India, China and South Africa) want to use their own currencies or a joint currency INSTEAD of the US dollar. They want to get away from the overworked printing presses of the Fed.

I believe the world is starting to back away or avoid the US dollar, and the “backing away” is beginning to accelerate. Where will the dollar-avoiders go? My guess is that there will be urgent calls for a new, acceptable “joint currency” made up of the Chinese yuan, the Swiss franc, gold, and maybe a few other currencies. This will be the new world reserve currency, but first there will be debates, arguments and a lot of time wasted. But there is no doubt in my mind, the world has “had it” with the US dollar and its Federal Reserve printing press, and it’s simply a matter of time before the dollar becomes unacceptable around the planet. 

If, indeed, the dollar should lose its precious reserve status, I think we will see a general rout out of dollar denominated items. Thus, I am talking about a slow widespread crash or possibly a rapid and widespread crash. Obviously, I don’t know which. Remember, the loss of reserve status for the dollar would be something that living Americans have never seen or even thought about before. I can’t tell you exactly the reaction of Americans and our foreign friends to a loss of the dollar’s reserve status, but I think the recognition would come rather slowly, and that much would be written about it (along with fatherly advice) before the dollar was totally abandoned by our friends and creditors.


When and if the dollar loses its world reserve status, I believe the surest change in America’s future is a decline, even a drastic decline, in our standard of living. We’ve spent what we didn’t have. And somewhere ahead, probably much sooner than we think, will come payback time. And it won’t be pretty. Americans have been stuffing themselves with free lunches and free dinners ever since World War II. We have been spending more than we have taken in ever since 1946. How could we do that? It’s been possible because we possess one “magical” advantage: the world’s reserve currency. For years the US dollar was considered “as good as gold.” Consequently, the world accepted our dollars by the multi-billions — until now. The central banks of the world and many nations including China (our biggest creditor) are now in the process of cutting down on their dollar exposure. To do that they are now buying (instead of selling) gold. 

So what is my answer to the day when the US dollar is unwanted and refused by our creditors? My answer is that somehow I believe the US will remain calm and riot-free. And that wise heads will come to the fore, and that the nation will remain civilized. The conventional wisdom has it that if or when the dollar collapses, all hell will break loose and the US will descend into hellish chaos. My optimistic guess is that it won’t happen. A new system will emerge out of the debt-clogged free-spending old system. I’m betting that Americans will act sanely, and that we will have learned. After all, that is the reason we’re here on earth for — to learn, to learn.

Subscribe to the Dow Theory Letters for the full article.

And here is the latest from Jim Sinclair: “[T]his will end in tears….”

Sinclair – The World Is Now On Fire & There Will Be Hell To Pay

Posted April 9th, 2013 by Eric King

Dear CIGAs,

On the heels of another massive QE announcement being pumped into the financial system, today Jim Sinclair told King World News the entire Western world is on fire.  Sinclair also cautioned that there will be hell to pay for the reckless behavior the central banks have now laid out before us.  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 interview.

Eric King:  “Jim, we’ve just had the announcement of further QE, what are the dangers here?”

Sinclair: “The entire world is on fire and most people don’t even realize it.  The world is literally ablaze with the creation of money, and there will be hell to pay for what is taking place right now.  The monetary policy of Japan has now spread out from Japan to Europe and will eventually infect the entire globe.

Markets now give the appearance of having no rules.  This is a world that, for the time being, seems to have repealed the normal law of consequences, but I can assure you this will end in tears….

Click here to read the full interview on KingWorldNews.com 

In the following interview between KWN and Dan Norcini, Norcini says, “What we are seeing is a battle of titans taking place in gold, silver and commodity markets.  This move is taking place as money is fleeing Japan.”  This is the most important development for gold and silver since their big moves UP off of their lows in 2008.  This is an interview you don’t want to miss.

Incredibly Important Developments In Gold & Silver Markets

April 10 2013

Today King World News is reporting on incredibly important developments taking place in the gold and silver markets.  Acclaimed commodity trader Dan Norcini told KWN that “What we are seeing is a battle of titans taking place in the gold, silver, and commodity markets.”  Norcini also warned that this is a similar type of setup in which the silver market moved a staggering 525% higher, and gold advanced 183%.

Norcini has been stunningly accurate in his predictions of the movement of the gold and silver markets.  Now the acclaimed trader discusses these incredibly important developments in both of these markets:  “What Japan is doing right now is unprecedented.  The Japanese are engaged in massive QE.  Their current version of QE actually exceeds the size of what the Fed has done when you compare the scale of both economies.

The world continues to witness tremendous turmoil in the currency realm, and Japanese institutions hold a staggering $6.34 trillion of government bonds, in the face of a plunging yen and virtually no yield on their bonds.  What this is creating is a massive flight of money out of Japan.   

This is impacting key markets around the world.  Yesterday, as an example, we saw a tremendous rally in silver, solid strength in gold, and a big rally in the mining shares.  But this move is very different than what we have seen in the past.  This strength in gold, silver, and key commodities, is taking place as money is fleeing Japan….

Continue reading on KingWorldNews.com