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Below are the 30 reasons, 23 new and 7 set in cement, of why the bear phase in the bull market for gold ends this
summer without any new lows.
The above comments are excerpts from a post* by Jim Sinclair (jsmineset.com) entitled 30 Reasons The Bear Phase In Gold Ends This Summer.
The following post is presented courtesy of Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) and the FREE Market Intelligence Report newsletter (sample here) and may have been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.
Sinclair’s post (unedited) is as follows:
1. The new definition of warfare is economic. Sanctions against Russia and the implications for the petrodollar.
- Will We See Financial Warfare Between U.S. & Russia?
- Financial Warfare: U.S. Would Be the Big Loser In Any Economic Confrontation With Russia – Here’s Why
- Will May 20th Go Down In History As the Day the U.S. “Petrodollar” Monopoly Was Finally Shattered?
2. FACTA and the universal long arm of the U.S. government via any transaction internationally that passes even momentarily through the dollar as a contract settlement mechanism. The negative implications for the dollar’s future as a contract settlement mechanism internationally.
- Update: U.S. Currency Control Implementation Has Been Delayed Until Jan. 1, 2017! How Will It Affect You?
- Capital Controls: How & Why They’re Implemented; What Harm They Cause; How to Protect Yourself
3. EU split over sanctions due to Russian energy demand and Russian business interests.
4. Middle East western hegemony and Arab Spring is defunct.
5. Iran to assist in Iraq if asked, which is the failure of “Misssion Accomplished.”
6. Iraq oil production challenged by ISEL.
7. Kurds emboldened by ISEL.
8. US relationship with Saudi Arabia and Qatar is strained.
9. BRICs uniting economically and politically as a standalone force.
10. China expands Yuan/Renminbi as an international currency.
11. China’s China Sea energy tensions with Japan and Vietnam.
12. USA’s position on the China Sea crisis where Japan is concerned.
13. The militarization of Japan.
14. The distinct scent of inflation.
15. General dissatisfaction with answers to questions to Chair Yellen regarding FOMC meeting last week
16. IMF reduced expectations of US economic recovery.
17. US zombie banks as defined by banks leveraged generally 30 to 35 times the size of their capital of total OTC derivative exposure.
18. Condition of the flooded municipal bond market.
19. Decline in volume with rise in value of equities, making equity price shadows our reality.
- Next Bear Market Shaping Up To Be Quite the Storm – Here’s Why
- An Analysis of Bubbles, Bubblers, Bubble Beliefs, Bubblenomics & Bursting Bubbles
20. Totally irrational exuberance driven by hyper liquidity.
21. Hyper liquidity can become hyper inflation via the velocity of money in a crisis of confidence of the dollar. Therefore hyperinflation will be a currency motivated event.
- Fed & Yellen So Far Behind Inflation Curve Chance of Hyperinflation Is Now 35%! Here’s Why
- U.S. Economy: Reduce Spending (Future Depression) OR Keep Spending (Future Hyperinflation)
22. Reaction in the momentum equity leaders of the last 2 years burning a public.
- Bigger IS Better! What Does This Selective Advance Mean For the Stock Markets Going Forward?
- Remember the “Nifty 50″? It’s Back! What Does It Mean For the Markets Going Forward?
23. Strength of the utilities group which has historical attachment to tops in equity markets.
Old problems:
24. The one quadrillion, one hundred and forty four trillion dollars real size of the OTC derivatives market.
25. Economic underpinning of the dollar in jeopardy as recovery sputters globally
- U.S. Dollar Collapse Will Be Cataclysmic Endgame of Current Fiscal Policy
- What Would USD Collapse Mean for the World?
26. Absurd size of the Fed balance sheet and lack of marketability of significant size legacy derivative positions.
27. Taper of QE and little Belgium to the QE rescue.
28. China and Russia on the sell side of the US treasuries.
- Financial Warfare: What Would Russia’s Sale of US Treasury Holdings Mean for U.S.?
- China Converting U.S. Dollar Debt Holdings Into Gold At Accelerating Rate
- China’s Reining In of U.S. Treasury Purchases Will Precipitate U.S. Dollar Collapse
29. MY RA exposes consideration of invasion of retirement accounts, and GOTS (Get out of the system) as a defense strategy.
30. The huge drop out of the labor pool in the U.S., making employment figures sketchy at best.
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://www.jsmineset.com/2014/06/21/30-reasons-the-bear-phase-in-gold-ends-this-summer/ (Copyright © 2014 :: Jim Sinclair’s Mineset – All Rights Reserved.)
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Add to the list the rapid increase in US Energy prices as traditional generation Big Utilities seeks to raise rates to maintain their market share and their “grip” over ratepayers that are now going Solar in ever increasing numbers.
Old technology and/or dirty Big Energy (which includes coal and nuclear) will continue to drag the US economy down because of long term contracts that their lobbyists have “bought”.
Instead of using Natural Gas (NG) to power the shift of the USA from Coal and Nuclear to Solar (of all flavors), most of the NG is now being shipped outside the USA, resulting in profits for Big NG and doing nothing for moving the USA toward a cleaner future.