Jim Sinclair

[Blondie]

This probably just shows my ignorance about freegold, but it strikes me that the notion that anybody could or should decree a ratio or currency value misses the point.

This statement demonstrates a remarkable absence of ignorance about freegold, IMO.

My views on the taxing of Freegold can be found here: http://flowofvalue.blogspot.com/2010/10 ... _5446.html, if you are interested.

[Indiana Jones]

http://www.jsmineset.com/2011/11/14/key ... alf-field/

Alf Fields

Major ONE up from $256 to $1,015 (actually 4 times the $255 low);
Major TWO down from $1015 to $699, say $700 (a decline of 31%);
Major THREE up from $700 to $3,500 (a Fibonacci 5 times the $700 low); this is the one we are in right now;
Major FOUR down from $3,500 to $2,500 (a 29% decline);
Major FIVE up from $2,500 to $10,000 (also a 4 fold increase, same as ONE)

[Malcolm]

My views on the taxing of Freegold can be found here: http://flowofvalue.blogspot.com/2010/10 ... _5446.html, if you are interested.

Thanks. Now I know about "FOFOA's dilema" and "Triffin's Dilema".

"FOFOA's dilemma: When a single medium is used as both store of value and medium of exchange it leads to a conflict between debtors and savers. FOFOA's dilemma holds true for both gold and fiat, the solution being Freegold, which incidentally also resolves Triffin's dilemma."

http://fofoa.blogspot.com/2011/08/long- ... egold.html

Both seem very relevant to what I seek to understand. I'm now confused at a much higher level.

Malcolm

[Blondie]

My views on the taxing of Freegold can be found here: http://flowofvalue.blogspot.com/2010/10 ... _5446.html, if you are interested.

Thanks. Now I know about "FOFOA's dilema" and "Triffin's Dilema".

"FOFOA's dilemma: When a single medium is used as both store of value and medium of exchange it leads to a conflict between debtors and savers. FOFOA's dilemma holds true for both gold and fiat, the solution being Freegold, which incidentally also resolves Triffin's dilemma."

http://fofoa.blogspot.com/2011/08/long- ... egold.html

Both seem very relevant to what I seek to understand. I'm now confused at a much higher level.

Malcolm

Malcolm, I have started a new thread here: http://www.freegoldcapital.com/forum/vi ... ?f=11&t=56 especially for you.
Fire away.

[Rasta]

Thanks. Now I know about "FOFOA's dilema" and "Triffin's Dilema".

"FOFOA's dilemma: When a single medium is used as both store of value and medium of exchange it leads to a conflict between debtors and savers. FOFOA's dilemma holds true for both gold and fiat, the solution being Freegold, which incidentally also resolves Triffin's dilemma."

http://fofoa.blogspot.com/2011/08/long- ... egold.html

Both seem very relevant to what I seek to understand. I'm now confused at a much higher level.

Malcolm

Do not be intimidated by the fact you see your prior knowledge and assumptions disappear into thin air. At first, it is like finding out that world isn't really flat. Do you now also have doubt the Earth isn't really the center of the universe? Or do you have to doubt that air is really a medium? No, one thing at the time.

Your perception is most likely already set straight, otherwise you wouldn't have ended up on this forum. From here, you can only zoom in, to get a more granular understanding. See it like an union, you start peeling off the outer layers. It remains an union for sure, but as you get closer to the heart of the issue, you get more understanding of the subject. True for freegold too, the concept is really simple, however you have to shake off first your misconceptions, then you start to fill in the details. Over time, you regain the overview again, once you get to trust the new understanding and implications of that knowledge.

[Indiana Jones]

Mises is absolutely correct: “There is no means of avoiding a final collapse of a boom brought about by credit expansion”. Whatever politicians, bankers, economists or others experts say, there is no solution to this crisis. We have reached the end of the road and are now staring into the abyss.
Mises is absolutely correct: “There is no means of avoiding a final collapse of a boom brought about by credit expansion”. Whatever politicians, bankers, economists or others experts say, there is no solution to this crisis. We have reached the end of the road and are now staring into the abyss.

THERE IS NO MEANS OF AVOIDING THE FINAL COLLAPSE OF A BOOM BROUGHT ABOUT BY CREDIT EXPANSION. THE ALTERNATIVE IS ONLY WHETHER THE CRISIS SHOULD COME SOONER AS A RESULT OF A VOLUNTARY ABANDONMENT OF FURTHER CREDIT EXPANSION, OR LATER AS A FINAL OR TOTAL CATASTROPHE OF THE CURRENCY SYSTEM INVOLVED”



DEUS EX MACHINA
http://goldswitzerland.com/index.php/de ... ongreyerz/

quote:

For those few who believe in this, may God bless them. But since this is a very unlikely solution most people will instead rely on governments and central banks to save us. But how can anyone possibly believe that totally incompetent and clueless politicians and central bankers could solve anything. They created the problem in the first place and are therefore totally unsuitable to play the role of Deus. The main objective of governments is to stay in power and thus to buy votes. Therefore they are incapable of taking the right decisions. And the opposition, aspiring to power is even less suitable since they will lie through their teeth and promise the earth in order to be elected. (We know that there are exceptions like Ron Paul, but the voters will most probably find his medicine too strong to swallow.)

What about central bankers, can’t they save us? Unfortunately any sensible person who becomes a central banker loses all his senses and becomes a prisoner of the political system.

EU and other failed monstrosities
The EU or the EEC as it was first called was created in the late 1950s. This was a prosperous period in the world economy based on real growth (not debt). As often is the case, politicians with illusions of grandeur create superstructures which only function in good times. The EU’s main objective of creating peace and well-being of the people is now being severely tested. If we for example asked Spanish youth (50% unemployed) about their well-being or Greek people or the Portuguese etc, we would get a tirade of abuse and complaints about the EU. Instead of “creating peace”, we are seeing major tension within the EU that could lead to serious conflicts. And as to “balanced economic growth and full employment”, this has all come to an end. The false prosperity, mainly based on debt, has also come to an end and the EU can only survive intact with the aid of endless money printing. But even that would only be a temporary reprieve. The EU is a failed experiment which is extremely costly and inefficient. The economic ruin of Ireland, Greece, Spain, Portugal, Italy, France etc would not have happened to the same extent without the EU. Like all artificial fiat currencies, the Euro was doomed to fail. Without the Euro, countries like for example Ireland, Spain or Greece would have recovered much faster.

unquote:

[Rasta]

King World News: Jim Sinclair - Why Financial System is Imploding & What to Do

With growing fears about the stability of the financial system, today King World News interviewed legendary Jim Sinclair. When asked about the ongoing crisis, Sinclair stated, “Well the story this morning is we have it but we’re not going to spend it. We are not going to buy our own bonds, we’re not going to cap the rates, but we have it and we might use it. It’s like that every day. Those guys can’t get their story together for more than fifteen minutes.

The ECB has the availability of funds for some activities in the euro bond market. They will use it, they didn’t get it to look at. Gold was up into the $1,760s, $1,755 (to) $1,760 has been a technical area to be challenged. It was a fortuitous statement by Draghi that, ‘We might not use it,’ after which gold (traded) $1,709. It’s something to watch.”

Jim Sinclair continues:

“But it’s the type of action in their market that bespeaks things to come. Fundamentally we are locked and loaded to go into the $2,000 area. Technically this chop is going to end real soon and we’re going to get direction. And the direction, in my opinion, is not going to be on the downside, but rather on the upside.

The accordion chop is going to launch us into the $2,000 area. Gold has never been easy to trade and it’s certainly not getting easier. But there has been a great deal of money made, not by chasing, but by waiting for these drops and taking advantage of them when they come, (and by) laying off a little on the upside.

Gold is cheap relative to the idea that you could have a life’s fortune on a statement from a clearing agent and find out that you don’t have a penny left anywhere. Which should you have had, physical gold or that clearing house statement? Gold is cheap because of the condition of other things....

When asked about the violent trading in the gold market, Sinclair responded, “You just saw it this morning and it didn’t even take ten minutes for gold to move down 50 points. So if you don’t think you’re going to see $200, $300 and $400 ranges you’re kidding yourself.

How can you have your money anywhere, Eric, and expect and feel certain that this money will be returned to you when you see the inner workings of finance and Wall Street through the eyes of the collapse of MF (Global)? Totally shocking.

We are in the midst of a crisis which is so complex that the public generally doesn’t understand it. This event is so complex that I’m not sure professionals reporting on it or possibly even a good deal of the management of companies operating in it totally understand it. The derivative is ahead of the client.

So in the Lehman case the banks just took out Main Street. When MF Global went down, that broke the mechanism. The sharks will eat the sharks now because in the case of the clearing house, what you are taking out are the traders and investors who had confidence that a clearing house meant their money was safe and segregated from misuse by the management of the clearing house. You lose confidence in that, how do you settle trades?

Today it’s not a question of will your investment come out correctly, today it’s a question of whether the money you put into the investment will ever come back again, regardless of what the quotation is. The only money I can count on is the gold I own, everything else depends on the system.”

When asked if there was any hope for the current system, Sinclair stated, “There is no one out there that has a plan that has a practical application that can change what is now. There is no practical solution being offered. There is no politician that has the courage to do the necessary and if the necessary was done, the system is so fragile that it would totally implode.

There is no solution to the present problems. What’s done is done. What will happen will happen. If you’re not prepared then you become the road, okay, you become the pavement. You must be your own central bank because the system is broken.”

This was an extremely important and powerful interview with the man who’s father was business partners with Jesse Livermore. The above was a small portion of a segment where Sinclair laid out, with remarkable precision, just how dangerous the situation is today. The KWN audio interview with Jim Sinclair will be released on Friday

[Adamus]

En Verhaar en Wellink hebben het nu gewoon over een systeemcrisis en teruggang in de conjunctuur. (pauw&witteman)
Niks collapsen.

[Rasta]

Ellis Martin Report with Jim Sinclair [23:49]

[Rasta]

King World News: Jim Sinclair - Why Financial System is Imploding & What to Do

mp3 interview [20:46] interview page

An extremely intense interview, I might add. A must listen!