First with Financial Comment from Arabia

Jim Sinclair predicts a global currency and $1,650 gold

with one comment

Dear Comrades In Golden Arms,

1. Bretton Woods was folded.
2. The floating exchange rate system is about to be folded.
3. By default or design we are going to a one-world currency and a one-world central bank of central banks.
4. For Portugal, Ireland, Italy, Greece or Spain to break off from the euro would be an expansion of the floating exchange rate system under present conditions.
5. There are presently 3 major currencies. That is the US dollar, the euro and gold.
6. The SDR was an attempt to form a single reserve currency that never took flight.
7. The SDR is an accounting unit made up of an index of currencies much like the USDX.

There is no immunity now from the size of funds seeking to speculate or manipulate markets. This type of money is attacking the debt of the weaker euro states by intention or coincidence. Their success in the Iceland situation was only the first chapter of a multi chapter play.

Central bankers fear that this type of action, most certainly if it is as successful as it was on Iceland, succeeding against the weaker euro states could easily attack the present functional reserve currencies, the US dollar and the euro.

There is an implicit fear that if the ECB refuses to or cannot sustain the debt of Portugal, Ireland, Italy, Greece and Spain the next to fall will be both the US dollar and the euro.

The states of the US are no different, in form or short opportunity, than weak members of the euro. Already major money is short California, New York and Pennsylvania debt. A pounding of state debt is as easy as the pounding of the weaker members of the euro.

Attack of a currency is primarily an attack of the debt representing that currency.

Central banks are run by bankers who used to measure their capital in millions only a few years ago. After the invention of the OTC derivative they measured their capital as today in billions. They now imagine measuring their capital both of their banks and personally in the trillions as they challenge nations, not companies.

China knows this and is insulating itself from this.

To accomplish this end whilst maintaining and increasing the value of hard assets ( assets of major players) a new single reserve currency must be functionally initiated either by default or by design.

A singular world currency must be an index of many currencies adjusted from time to time. Adjustment within its membership is the key to a common currency that the EU forgot about.

Whatever institution manages that index becomes the central bank of central banks able to create artificial money according to its allocation of the single currency index. This is what was desired of the SDR originally.

The chances of reverting to a Bretton Woods or increasing the Floating Exchange rates are unlikely.

A collapse of the weaker states of the euro would be an expansion of the floating exchange rate strengthening the market forces that will attack all nations one by one after their success in Iceland. The weakest will be the first to go, but none are safe.

The chance of an abrupt change to something new now, as above, is unlikely. The probability of moving towards a one world currency in stages over the next 5 years is a reality.

In order to make that transition a method of raising the status of the IMF and the SDR would be most likely. Such a transition would be for this entity to assist in sustaining the weaker states of the euro and the USA as the states of the USA are now rolling over harder, balance sheet wise, than the weaker states of the euro

The debt of nations is not immune to the tsunami of these speculative and manipulative funds attacking by design or coincidence, focusing on a market all on one side – short.

OTC derivatives are being used in the strategy to collapse the weaker states of the euro.

OTC derivatives are the cause of this entire trauma by design or coincidence.

Nothing has been done to curtail or reduce the ever-growing mountain of these instruments.

All that has occurred is the new means of valuation as value to maturity, and the collapse of FASB requiring market valuation. Both items repaired the appearance of the balance sheet of the financial entities by allowing a cartoon of valuations to re-enter the system.

The decision will take place that is in the best interest of the majority power of four groups ruling these bi-polar central bank meetings. Those groups are the banksters, bankers, Daddy Warbucks and politicians.


1. Gold will progressively lock price-wise in the inverse to the SDR or similar item.
2. An exchange will soon begin to trade a virtual SDR or similar item just as they trade a virtual dollar as the USDX or virtual gold as a paper gold.
3. The USDX will become redundant.
4. The ability to pay off the debt of previous reserve currencies with market de-valued paper is facilitated.
5. Currencies as a whole will decline.
6. That decline will be the SDR versus the gold price.
7. The method of attacking a currency is inherent in attacking its debt.

The answer is simple even though the problem is complex.

Reduce all your currency positions into strength. Buy gold in all its forms other than US or Euro based in weakness.

Gold will trade at $1650 and above. The US dollar continues its march in phases towards worth-less and worthlessness.



Written by Peter Cooper

February 8, 2010 at 10:13 am

One Response

Subscribe to comments with RSS.

  1. These ‘the sky is falling’ doomers are starting to get funny. I wonder if that global currency will work out as well as the euro is working today in displacing the US dollar? Wasn’t it supposed to have been well on its’ way in replacing the dollar by now?
    He is a little behind the curve on the discussion of special drawing rights. Jim Rickards of Omni Scientific Consulting said the same thing nearly a half year ago on CNBC US.
    According to Bloomberg, measured against a basket of currencies from the Group of 10 Nations, proportioned against how they trade against each other, the dollar is up 3% since 1975.
    The US Government will create enough money to prevent any dangerous stock market crash. If (and only if)things get too bad, they will call the big banks and ask, “You guys want some zero interest rate money to use to buy stocks?” Answer hint: AT&T = 5% dividend. I think they learned their lesson from letting Lehman go belly-up.
    But I do like the articles. Go SAINTS, the real ‘football’ World Champions!!!

    Bill Simpson in Slidell

    February 8, 2010 at 8:18 pm

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: