Things are unfolding as Jim Sinclair predicted. Bailouts will increase by order of magnitude as this crisis unfolds and infects the balance sheets of major financials. The Fed is already quickly running out of hard assets, meaning the next wave of bailouts *must* be financed by printing Greenbacks at record rates. In fact we're already seeing signs of what I refer to as "undercover bailouts" rippling through the reconstituted M3 money supply index which incidentally is now going ballistic, growing at highly abnormal rates in the neighborhood of 17-18%. This is a sign that "all is not well" in the land of Oz, now widely recognized by a growing number of large investors - including SWFs - in US$-denominated assets who are busy cutting back on future investments in America. In short these dynamics guarantee the Dollar is poised to drop to new all-time lows at any moment.

A local business news report was comparing current M3 growth at 17-18% with rates at the peak of inflation in the late 70's/early 80's. Back then M3 peaked at 16% & inflation at 14-15%. Yet that was enough to set Gold & Silver on fire, rising nearly 25 times the bottom set ten years earlier. Today 8 years into this generational bull market M3 growth is even higher, while John Williams (shadowstats.com) reports the true rate of inflation is approaching 12%. Yet Gold & Silver have risen no more than 4-fold since the bottom in 2001. Just goes to show you how much farther Precious Metals have to rise (another 6-8 bagger) from here just to match the gains seen in the 70's bull market. This translates to $6,000 Gold & $400 Silver for starters. Yet we know full well prices must rise much higher, since it's a given M3 and inflation are poised to rise substantially before they both peak way off into the horizon after American debts are settled one way or another. Many thanks to all the sellers of anything PM-related today who guarantee fortunes in store for the precious few who truly understand the unfolding dynamics behind the greatest wealth transfer in the history of mankind.