Sinclair zu Dollar und Gold:
Sunday, August 21, 2005, 8:12:00 PM EST
News Briefs
Author: Jim Sinclair
Jim Sinclair’s Commentary:
Words of wisdom not to be found in the US media.
Recently, the London Financial Times ran a story titled "Derivatives cannot take the strain" which discussed the short squeeze delivery problem in the 10 year US Treasury, listed future (first derivative):
"The real problem is that the US economy is just too leveraged. Starting with the housing industry, the country is too dependent on derivative markets to create the illusion that interest rate risk can be conjured away. The technical problems of the 10-year are just another early warning sign of this fundamental weakness."
Jim Sinclair's Commentary:
Authoritarian Free Enterprise is good business for the elite authoritarians. About that there can be no argument. When you control spending (demand) and supply, profit simply emotes to your coffers.
Now is there anyone that would deny the authoritarian character of Russia with its appointed Dumas made up of former KGB officers, appointed majors and governors of the same ilk? The gargantuan powers that have been drawn into the office of the Russian presidency rival that of the Lincoln administration during the Civil War.
Yet Western banks are falling over themselves in competition to provide $7.3 billion in loans to Federal Russia. The competition is rivaling a "Lending Tree" advertisement of international bankers throwing money at Federal Russia for the takeover of Gazprom.
What these bankers are doing is lending money to the Kremlin in order to gain state control of what will be, in time, the entire Russian gas and oil wealth. By the purchase or confiscation for supposed tax evasion, the central Russian government, with the help of international bankers, is in the process of centralizing control of the energy industry unto itself.
Now this is what Authoritarian Free Enterprise is all about. It matters little if it is the state or state makers who own it all as long as those that create authority - kings and presidents - also hold the major assets or means of production.
In Russia ,the new KGB is no longer in the dirty tricks business based on an ideology or with a prerogative to acquire new states. Now it is all about the acquisition of immense personal fortunes. Clearly, spy payday has arrived.
There is no more important development in this segment of world history than the birth of and undeniable success of Authoritarian Free Enterprise.
Gold has a place in this drama and it is at much higher prices via a mechanism which is a revitalized and modernized Federal Reserve Gold Certificate Ratio. It will guarantee thatpr when the dollar reaches its low level, probably .5200 USDX, that it will decline no more, Maybe it will hold and appreciate for a period of our children's ifetime.
You can simply and openly do this in Russia as the population deep down actually prefers it. Meanwhile in the West the decline of the dollar is the means by which the stage will be set for the final act in fully establishing Authoritarian Free Enterprise. All this is simply accomplished by "benign neglect" of the need for policy changes to heal the dollar's triple deficit problem.
The decline of the dollar and roll over of the economy will set the stage in the West to simply write off the books in a practical sense all entitlement spending expenses - both Federal and corporate.
This is the game and gold is headed for $1,650.
![:]](https://goldseiten-forum.com/wcf/images/smilies/pleased.gif "Freude"){kind=small}
