RE: Liquidity crunch & scenerioJim Sinclair’s Commentary
The Vancouver crowd says "Sinclair is nuts on derivatives."
When will they learn? NEM dumps $2,000 million and others are following. You think that all those losses mean nothing whatsoever to their juniors? Do you really believe that NEM is going to eat the 2000 million debit in their “Philosophic Action Account”?
It is just this type of total denial that caused the problem in the beginning and middle. Now we are close to the end. These juniors still might be able to flip their deals with the majors to avoid the grim reaper, but the chance of seeing that clearly is somewhere below zero when you are in denial.
If your major has a non-recourse development loan you can be sure you got the Ebola of derivatives.
Did Bear Stearns, Parabas and the rest of the highest level of financial intelligence ever expect their credit derivatives to blow sky high? You think Vancouver has more understanding of this than those two?
Posted On: Thursday, August 09, 2007, 1:34:00 PM EST
Jim's Mailbox
Author: Jim Sinclair
Dear Jim,
Inflation is the coming problem for the developed world.
I am in touch with a lot of people in the developing world from India, China, Brazil and elsewhere. Please let me share with your readers that the inflation genie is out of the bottle in these countries and they will be raising the prices of goods they sell in developed countries.
If the developed countries surrender to political pressures for faster revaluation of foreign currencies, the inflation they export will be even greater.
As you well know the current liquefying of the system by the ECB and other institutions will add more inflationary fuel and be very positive for all commodities, especially gold.
Your pal,
Monty