As Argoz reminded us recently, this play is unfolding according to script so far, so those with ears to hear must seriously consider the wise counsel of Sinclair in his June 8th piece as a possible outcome, playing out over a far shorter term going forward that any of us would care to consider this evening. Today I give his outcome a 25-33% chance of "success" based on latest developments, with odds increasing every day the Feds delay QE3, making the current downturn all the more intractable the longer they scratch their noses and adjust their privates.

Wanna guess who bought all those treasuries today? Try the same gang who purchased most of the issuances in recent memory - the Fed. With a little help from the Japs of course. What measure of your net worth are you willing to wager the tptb can maintain this charade much longer while increasingly losing grip of the situation with each passing day of insufficient intervention in key markets, providing much needed lifeblood courtesy QE3? Also carefully consider the long-term consequences of spillover downgrades of Fannie & Freddie and practically all stressed Munis. It certainly doesn't add to overall stability or liquidity, expect perhaps to float Treasuries another day or tw0. Fix this fast boyz:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/6/7_Jim_Sinclair_-_Gold_to_Exceed_$12,500_to_Balance_US_Debt.html

"...A cessation of quantitive easing could open up the black hole of Calcutta for the general equities markets in a way that very few really understand. You could see thousands of points taken off that market in a very short period of time.

The only way to overcome that would be by whatever name you called it to start the QE again. That would be indicative of a total loss of control. So the question is what would the price of gold be if it became publicly undeniable that control of the economic functions for the believers no longer resided in Federal Reserves and central banks?

The answer is gold would do what it historically attempts to do and that is to balance the balance sheet of the United States of America’s external foreign debt...and when we do the calculations we come up with a figure that is in excess of $12,500.”