First with Financial Comment from Arabia

Jim Sinclair updates his apocalypse for the dollar

with 10 comments

jim_sinclairOctober 30th the Fed is planning to curtail QE regarding Treasury auctions.

November 4th is the FOMC meeting most likely to contain discussions of timing for the exit from economic stimulation.

November 7th is the G20 meeting at which BRIC nations will anticipate a cessation of QE and a commitment to establish a currency alternative to the US dollar.

Plus two other interesting events.
1. A Bradley Day
2. Consideration of the DaVinci Ratio

So fasten your seat belts because our long discussed rock and hard place will be reached shortly.

Can the Fed provide the Chinese with their demands of middle July at the USA/Chinese Washington Financial Summit in a deal to buy US Treasuries so as to let the Fed back off their US Treasury instrument auction QE.

Will the market reaction to this strategy actually prevent this strategy?

Will the present administration be comfortable with the price of the continuance of Chinese buying of US Treasury instruments?

Will the upcoming Bradley Day signal a change in the equity market rally since last April?

The DaVinci mathematical ratio does not support a top in gold of any merit here nor does it support a bottom of any merit in the US dollar.

So there is the witch’s brew we have been counting down to. The point where push comes to shove. Where theory becomes actuality. Where the desires of the Fed faces off an administration’s desire to maintain its present strong political control. Where the equities market could end their 1932 rally.

All of this occurs with no indication of a top in gold or a bottom in the dollar of real merit.

Jim got his gold top at $1,226 – so what happens next? Click here for one view.


Written by Peter Cooper

October 28, 2009 at 3:32 pm

10 Responses

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  1. I love your website but Im a bit confused and wondering…I see the jim sinclair article about the dollar crashing in 85 days but I dont know when you posted this article…is it 3 months old or a year?
    or was the article posted just yesterday?

    I would really be helpful to your readers if there was a date the article was posted…

    just pointing this out…again, great site and great articles…keep up the good work!

    Ed Note: Published August 14, 2009 at 10:01 am – great timing but the gold spike is now history and the dollar is going up – see latest articles on the site.

    Douglas Burns

    December 13, 2009 at 2:24 pm

  2. Jim got his dollar crash – and gold hit $1,226 – but now we have the dollar rally and gold crash…

    How long will this dollar rally last? According to Jim not for long with more fun for gold next year – and his target is $1,650 for the start of 2011.

    Jim was spot on in November – so we will be watching for his next signal.

    Peter Cooper

    December 7, 2009 at 2:37 pm

  3. “Ed Note: I think if you look from the gold perspective Jim Sinclair has been spot on, and the dollar is at a 16-month low.”

    Thank you for the note. I guess I was expecting a Weimar Republic type of collapse.


    November 15, 2009 at 11:56 pm

  4. The 85 days have already came and went. No crash.

    Ed Note: I think if you look from the gold perspective Jim Sinclair has been spot on, and the dollar is at a 16-month low.


    November 14, 2009 at 5:02 am

  5. Well, another false alarm. The old fable of the boy crying wolf seems to come to mind at the moment.


    November 12, 2009 at 1:07 pm

  6. Talking his book, and the talk isn’t all that interesting. Want to predict the SHORT term dollar trend? Flip a coin.

    Bill Simpson in Slidell

    October 29, 2009 at 8:59 am

  7. tlz

    October 29, 2009 at 6:51 am

  8. The last few days the market has been tanking when the dollar gained ground and strengthened against other currencies but as the dollar dropped the stocks have been rallying. I suppose I would rather see a stronger dollar so that the market would tank since I am short holding FAZ and SPXU.

    For now I’m just waiting for everyone to start jumping off the ship as the cracks look like they are getting bigger.


    October 28, 2009 at 8:35 pm

  9. Don’t know what a Bradley Day is either, but the DaVinci Ratio is a ratio where a 2nd line is double in length to a 1st line, with a 3rd line double in length to the 2nd line. Makes me think of Elliot Wave theory. If I am interpreting Sinclair’s statement correctly then we still have a lot of upside wave 3 potential in gold.


    October 28, 2009 at 6:41 pm

  10. Before anybody asks I have no idea what a Bradley Day or a Da Vinci Ratio refer to!

    Also the dollar seems to be strengthening, not weakening right now – and equities, gold and silver weakening. It could be the Fed fixing it for its record bond sale. But the Fed has power but is it that good?

    I think the equities market is about to fall over and that will push up the US dollar. Will it hold? Then Mr Sinclair might well be proven right – although he got last year’s equity and gold crashes very wrong. This is all horribly confusing – hedging bets seems the only response as neither option is compelling. I continue to like a few short ETF positions against an equity crash.

    Peter Cooper

    October 28, 2009 at 3:49 pm

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