sinclairs instructions for battle tonight

  1. 5,881 Posts.
    I am lining my underwear with Kruggerands now,


    Sunday, September 07, 2003

    The Jobless Recovery Reviewed: A weekend chat between James Sinclair and Warren Pollock

    Author: Jim Sinclair









    JES Comments: Warren contributed to the economic commentary on the jobless recovery. All other comments are mine.

    The IMF has issued a public warning concerning the consequences of the growing US deficit. Published in the European press, this warning received scant attention among the stock-flogging analysts who direct business communication in today’s media.

    With its weak currency, out of control Current Account Deficit and no fiscal discipline being exercised, the United States appears to be behaving like a Third World country which - if that was indeed the case in a Third World country context -would prompt the IMF to demand a cure.

    That cure would be an enforced financial austerity program to restructure the pervasive US debt. This program administered by the World Bank and the IMF would require the US currency to be valued by the marketplace without intervention by the Exchange Stabilization Fund or any other government-backed entity.

    The US would have to suffer in the same way that its agent, the World Bank, forced so many other countries to suffer. Talk about a double standard when a nation is armed to the teeth and willing to use that power.

    The USA is a debtor nation becoming a beggar nation but on the business of weapons. A hard-begging bowl not to fill. I wonder if the Constitutional Fathers are watching this show.

    The recent trend in the US to outsource manufacturing, information and financial services alone, is going to cost the US working public 1,750,000 jobs by the end of 2004. We are a nation running to the tune of accountants and attorneys who are focused only on the bottom line no matter what it takes to produce it – sometimes destroying their own companies in the process.

    The pendulum has certainly swung from the days when labor was all powerful to the days when CEOs are almighty. You wonder if these abuses of human capital will not start the swing back towards militant labor practices.

    The distance between those few that have so much and those that have hardly any is widening into historically dangerous territory. That is a problem building that our own Daddy Warbucks has missed completely.

    This new trend of long distance outsourcing to locations with cheap intelligent, hard-working populations is creating masses of terminally unemployed in the US. Only so many can work for Wal Mart and McDonalds.

    Because of this new wrinkle in "Exit Globalism," US monetary and fiscal policy cannot work efficiently to restore the previously ebullient business conditions in the US. In fact, you will see that expansion of US monetary and fiscal policy is more a stimulant for the Chinese and other Asian countries than it is for the US and our dollar.

    Stimulus now finds its way unintentionally to these import trading partners. As the US pumps more stimuli into the economy by growing Monetary Aggregates into up trends as year over year growth and fights two big and a few little wars, the domestic and foreign debt grows by leaps and bounds.

    The newest name for the Iraq campaign in Europe and Asia is the "Coalition of the Hired" because you may not know that the US picks up the bill for those who have sent in a few troops.

    I wonder if the 150 monkeys that one nation sent to the "Coalition of the Hired" as mine finders cost much? They actually have trained these monkeys to march. They march these unsuspecting draftees into a mined area and locate mines by flying monkey parts. Wait until Jane Goodall in Dar es Salaam Tanzania gets wind of this one!

    By attempting to re-stimulate the US economy and promoting "Exit Globalism," the demand created in the US stimulates China rather than the US. To keep Treasury Secretary Snow happy, China in turn buys US debt, creaming the Current Account Deficit into historic proportions.

    It is predicted that the US Current Account Deficit will range between 7% and 8% of GDP in 2004. Please see the chart published below and what that means to the US dollar regardless of what the Spin Doctors are saying and that includes the St. Louis Federal Reserve Bank Research Department.

    There is no question in my mind that the US dollar - after political and electoral prerogatives of managed markets are exhausted - will simply dive off the cliff of .9238 on the USDX. There is no other fundamental possibility in the present world condition we live in.

    The present recovery - if in fact anything really recovers outside of profits - has been and will continue to be jobless because the jobs being created by the monetary stimulation are going overseas and will stimulate these countries' respective economies at the expensive of ours over time.

    In time, Asia will lead the world and the West will have handed it to them. This giving away of the title is a product of deceit management with no respect for human capital. This is your brave new world of so- called capitalism thoroughly infested by self greed.

    Throughout all time when man succumbed to greed, avarice, selfishness and total disdain and disregard for the Motherland, the Motherland of others, Family traditions and the welfare of his brothers and sisters, there has risen a phenomenon to set things right. Some call that the Avatar, others the Messiah and even others the Kondratieff Long wave Whatever it’s called, it is here now and things will be set right.









    Pre-Battle Instructions before Gold opens in Hong Kong this Evening

    There is no question in my mind that the US dollar - after political and electoral prerogatives of managed markets are exhausted - will simply dive off the cliff of .9238 on the USDX. There is no other fundamental possibility in the present world condition we live in.

    The present recovery - if in fact anything really recovers outside of profits - has been and will continue to be jobless because the jobs that are being created by the monetary stimulation we have now are overseas and will stimulate their respective economies at the expensive of ours over time.

    In time, Asia will lead the world and the West handed it to them. This giving away of the title is a product of deceit management with no respect for human capital. This is your brave new world of so called capitalism thoroughly infested by self greed.

    Throughout all time when man succumbed to greed, avarice, selfishness and total disdain and disregard for the Motherland, the Motherland of others, Family traditions and the welfare of his brothers and sisters, there has risen a phenomenon to set things right. Some call that the Avatar, others the Messiah and even others the Kondratieff Long wave Whatever it’s call, it is here now and things will be set right.

    Gold is destined for prices much higher than even I had envisioned over a period of time no less than an entire generation. Titanic negative forces will fight back as they did in the Mahabharata, as they did in the Roman vs. the Christians. This is a war. You are warriors. We win by discipline and the battle begins as Hong Kong opens this evening.

    And now for a little sage advice:

    1/ Sell into strength along the upside overbought lines of the power up trend lines and simple up channels.

    2/ Be advised that many gold shares including RGLD, GG and eight others have formation and a break to the upside will give you a measured move and new power up channel. Stay focused, disciplined and steady. Make optimum sales as I have taught you of only 1/3 of your position. Then dig in and keep your head down and your ammunition dry.

    3/ Leave the battle to me and other hard core warriors tonight and tomorrow. The fruits are yours. The work is mine. I have no desire or right for the fruits of this action. I desire victory only for you. Your job is to take best advantage, replenishing your ammunition so we can charge again when the time is right.

    4/ Those that wisely use stops do not stop you entire position. When and if a stop fires, it warns you. Look at the market and decide - and if you sell discipline you broker. Never ever use a market order. Decide what discount you might accept for a sale or premium you would pay for a buy and place your limit there. Instruct your broker to do it at price "OR BETTER." Then get time and sales and hold his/her feet to the fire for the best execution.

    5/ Never ever use a stop in a commodity option unless you want the lowest price of the day on a sale or the highest price of the day on a buy.

    Remember the following as well:

    a/ COT is a scam on the public to convince you that you are nothing and Commercials are everything. You are legion with money. They are 6 without capital. Those 6 depend 100% on you going into disarray and flight. Never retreat. Face the enemy and fight until the end by regaining your ammunition in 1/3 sales as I have instructed.

    b/ Expect negative gold statements from governments, investment bankers and maybe even the department of education. Well, they used the World Bank didn't they? That was scraping the bottom of the barrel wasn't it?

    c/ Expect the Comex to raise margins but remember stock margins were never raised in the tech bubble.

    Good fortune my Golden Comets. The Cartel knows you are powerful, able and focused. Gold is on its way to a free market. We are fighting for more freedom than just the gold market.











 
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