The 42-Point Play

In recent missive, Jim Sinclair gave us 84 days (IT's about 60 days now) until hyperinflation; that's somewhere around the beginning of November. Arch Crawford puts the blast off date for gold at October 16th. John Rubino and Jim Willie are with both Harry Schultz and Bob Chapman, writing about an "event," a possible dollar devaluation, that is coming in this same time window. Could it be that such a monumental event of some sort is very close? I believe so.

My sense also is that the Chinese have just about had it with everything that we are doing over here. They've got so much money in the game that they are willing to hope against hope that Obama and his well-meaning compadres are going to come up with something to save the day, so to speak. But their, the Chinese's, enthusiasm is waning. Mine would be also.

And just what sort of "something" are Obama and the leaders at the Fed, "all honorable men" trying to come up with?

Perhaps the most appropriate answer can be demonstrated by something my father pointed out to me many years ago. We were at a high school football game. The team losing was down by three touchdowns and there were less than ten seconds left on the clock. The losing coach called a timeout and huddled with his players over on the sidelines. I can still see him there, scribbling something frantically on his hand-held chalkboard. (This was before whiteboards.) As this was going on, my father turned to me and said, "Do you know what that coach is doing right now, Al?" I shrugged my shoulders. (I didn't know.) My father answered, "He's working on the 21 point play."

My best guess is that's what Obama and associates are doing right now. Down by six touchdowns with five seconds left in the game, they are working on the 42-point play. The Chinese are hoping, (in a way someone with a lot on the line to lose would hope), that maybe, just maybe, the Obama team just might come up with something. I have news for the Chinese: They won’t.

The question now for you and me is this, however: Will the Chinese let the U.S. devalue first to try and save some of the function of the real estate market? (Remember: a 50% devaluation doubles the price of every house, but keeps the loan amounts (debts) the same, so people will be less inclined to walk away from their properties) OR Will the Chinese fire first and dump their dollars and cause a more unpredictable form of inflation i.e. dollar devaluation i.e. gold revaluation.

Jim Sinclair believes very strongly that all is about to fall apart in about 80 days. I am a firm believer that Sinclair is somewhat of a market intuitive and, therefore, knows what he is talking about. I don't think he always operates entirely on logic but has access to other, what most would consider unconventional, sources of information. He's too good. If you are seriously in this game, then you need to consider this possibility, a supranormal intuitive ability which Sinclair has publicly acknowledged he possesses.

You might not choose to believe in him or this, but you need to at least consider the possibility, as I said. Too much is at stake if you are wrong. Such people do exist. Some people just "know," in the way MacArthur just "knew" that the North Korean Army wouldn't be waiting at Inchon. There are, indeed, more things in heaven and earth, Horatio...

If you do have trouble believing in such seemingly esoteric things, that is perhaps fine still. Life, in its seemingly limitless benevolence, has offered all of us yet another way "to knowing." There is another part of what I call the Sinclair One-Two Punch that we may yet still avail ourselves of. Sinclair has access to inside information that maybe less than a handful of people on the planet have access to. He has hinted at the nature of this obviously very sensitive inside information many times in his writings. He even--in the style of all great gurus throughout history--gave a simple yet tedious task that any of his followers could accomplish in order to substantiate for themselves the truth of his claims.

He advised his readers to read one book in order to gain this awareness. That book: Our Crowd by Stephen Birmingham. Now, how many of of his loyal readers besides me do you think actually read the book? My guess is that I am the only single one. It is long, often difficult to get through and even painful at times. My reward: I know how Sinclair knows. And I know he is correct. Think about that one for a minute. I know. Do you know? I do. Don't bet against Sinclair on this one. It's like betting against paint drying.

The October/November time window is meaningful.

Now let me give you something useful to read in order to understand where we are financially as a people, as a nation, right now. You will most likely never make it through Our Crowd, so don't worry about it. Read and re-read the first five books of Isaiah. It's all in there, everything you need to know about what is going on and will continue to go on in the U.S. and the world at large right now. If this makes sense to you, you are in good shape. If it doesn't, get ready to have an unpleasant next few years. I'm sorry. Remember the immortal words of Warren Buffett that I paraphrase here: "In every poker game, there is a patsy. If you are involved in a poker game and you are looking around having a hard time trying to figure out who the patsy is, most likely that's because it's you.

There is only one way to protect yourself here. Gold, silver and quality gold stocks. Not 10%. Not 15%. 100% in precious metals. Do it now. Time is running out.

All the best, Sitting Bull