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Monday, December 24, 2012

Jim Sinclair Spells Out




My Dear Extended Family,    
    
Dear Jim,

In reading your last email i'm perplexed at what the final outcome will be. Will it be that everything will go against the norm from this point out due to manipulation? Are investments using Wall Street products as an outsider over? Will the PM markets be controlled and held down to the advantage of the devils in the sandbox? For us outside the theatre investors, is it time to buy a farm outside the USA so we don't have to use GMO seeds?

Cordially yours,
CIGA Jeffrey 

Dear Jeff,

Let's start with the economics of your question. In your business as a defense attorney you have had to deal from time to time with people in downward spirals. You know the downward spiral never stops unless perfect intervention is exercised and the person in the spiral actually wants change.

That is very rare.

Economics are the same. Economics is made up of people and their decisions. Having committed significant economic crimes of debt there comes a time when their total acts work as a heavy weight on their being and really bad habits take the individual down further into a negative spiral, which if not intervened properly will go to zero. They by definition in most cases must fall to hit bottom. Hitting bottom is the last human condition before death in such a set of circumstances.

Think of the drug addict that ends up dead from overdose. The drug in economics is credit. The downward spiral we have been in is the simple result of too much and too many pushers of the drug debt. It has grown to such an unbelievable level that there is no tool in any central bank's tool box to fix the size of the overmuch debt problems.

The manipulation of markets in the hope of manipulating people's perspectives simply will not work to prevent further drops into the negative spiral going to hit the bottom.

Hitting the bottom is now defined in currency values, particularly the present, by default, dollar reserve currency. Since nature always requires destruction before construction, in a downward spiral manipulation borders on a sick wasteful joke. We are stuck in the concept of time versus conclusion so many are temporarily confused by manipulation.

Manipulation is the sign of madness amongst governments suffering from egomania during a downward spiral. Manipulation may cull the weak in an industry from the strong, but the strong will succeed regardless. Manipulation will not prevent the outcome of an economic downward spiral in Western finance presently entrenched and long term.

We have now defined the long term downward spiral as the value of the US dollar versus other currencies.

Now on to your question of a hobby farm. Now is the time to acquire the property. The real estate market is bottom bouncing which means that utility properties such as a farm should be acquired for our purposes It should be within a day's comfortable ride to reach. It can function as a gathering place for the family to grow protein and other eatables. It can be purchased utilizing a reasonable mortgage as long as the rate is fixed. You can use Agricultural services such as Farmer's Credit Bank and Agricultural Extension service to get the right thing. Look at it as a fine family hobby and part of your investment portfolio.

Very few people can be happy amongst cultures not common to them so the thought of other areas for the hobby farm will apply only to a limited few.

Respectfully,
Jim

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