Jim Sinclair’s Commentary

After reading this, please review the Formula which will be the last hammer to fall. It will take a miracle for the US dollar to hold .5200 USDX and gold to stay at or below $1650.

Jim Sinclair’s CommentaryAsia rises as the West falls.Volcker won it all and Greenspan gave it back while Bernanke holds the bag.No plan is the most creative plan as it always works because it yields NOTHING.The West manufactured paper products called OTC derivatives.Asia manufactured goods.The West ends up holding the bag of worthless class 3 assets.Now let’s see what Asia does with GOLD.: Dollar falls below 7 yuan for first time since 1993 By Lu Jianxin Reuters Published: April 10, 2008

Yesterday former Chairman Volcker declared this to be the “Mother of all financial crises’.” He made his point not because it was ending but because of the enormous danger out there.

Greed, lies and deception got us here
Greed, lies and deception will not repair the damage done.

International investment houses continue to write OTC derivatives. They have to, as that was what delivered the clear majority of their earnings. With normal investment businesses off, they will not stop writing OTC derivatives. This is the greed part of the lies and deception noted above.

Maybe it is time to apply misinformation and dirty tricks to attempt to make cover in gold juniors shorted by hedge funds. …as in the following:“Hedge Funds Put Small-Cap Mining Stocks at Risk (Update1)
By Lynn ThomassonApril 9 (Bloomberg) -- Hedge funds own an outsized stake in small-cap commodity producers, making the industry susceptible to steeper share price declines if raw-material prices drop, Citigroup Inc. said… (”oh, yeah. Don’t you just wish they were long rather than short, and that raw material costs are going to drop Citigroup!.)

It will take a miracle now to hold the dollar above .5200 and gold only to $1650U.S. Trade Deficit Grows Unexpectedly: By MICHAEL M. GRYNBAUM
Published: April 10, 2008

For those of you who didn’t know, I was Chairman Volcker’s expert advisor on precious metals appointed to oversee the liquidation of the Hunt family’s silver as a criterion for the Wall Street bailout loans at that time.You know I respect the former Chairman and his grasp of markets, Fed powers and economics. In that sense this is one of the best imprimaturs on my position that “This is it!”

Volcker slams Bear bailout: 9 April 2008

Conclusion: Nothing is solved and little is contained. All will break down with the test of credit default derivatives when the issues all have their debt downgraded.

The price objective on Crude is $125 to $128 per barrel and that is only for now.......Gold will trade again between $1024 and $1030......

Gold is headed to $1650 and that is conservative.