The legendary Jim Sinclair sent an email alert to subscribers this weekend, warning that dollar based entitlement payments will be reduced to nearly meaningless levels on a single day, and that the result will also solve the health care cost crisis in the US, by accelerating the attrition of pensioners and removing the most sick from the equation.
Sinclair seems to agree with our statement that Blythe Masters may be responsible for the greatest loss of human life in history when the derivatives collapse is complete.
Regarding the timing of the collapse of the dollar, Sinclair states: Timing is a question of when our masters via Goldman Sachs decide to pull the plug on confidence in the US dollar.
Sinclair’s full alert below:
From Jim Sinclair:
In his last report, John Williams expects hyperinflation by the end of 2014. He has advised (in an interview separate from his most recent report) that when this happens, the purchasing power of the US Dollar will collapse and in about six months a new currency will be issued.
All of this leads to a lower US dollar in an intact trend channel that goes to and below .5600 on the meaningless USDX index.
You’ve talked about a new, two-tiered currency regime (if I understand correctly) that will consist of a basket-type currency traded among central banks and national or multinational-basket currencies used by the rest of us.
My question is, after the new currency regime is created, what will happen to transfer-payment programs like SS, unemployment comp and the like? Will these payments resume in whatever currency the US uses next? How about public-sector employees? They, effectively, receive transfer payments too. Will they still be paid? I know the private sector will be FUBARed because it’s subject to market forces. Don’t laugh at this next question: can this be handled seamlessly or should we assume Petunia is taking flying lessons?
Think of it as a virtual reserve currency only available to central banks to trade in. Think of it as the same currency system we have now with very different currency cross rate values. Think of it as the euro, ruble, rupee and yuan as a currency trading block, not a unified currency.
This is how you reduce international dollar debt and insular dollar entitlement payments to almost meaningless levels, all in one great arm wave on a singular day. It will also cure the health cost problem by removing the most sickly from the equation, the pensioner, by accelerated attrition.
Timing is a question of when our masters via GS decide to pull the plug on confidence in the US dollar as there is no other practical solution in the minds of our masters.
The Euro at $1.5O and maybe much higher, which by the way makes my Swiss Franc and Canadian dollar inventory look quite good. I wager you never expected the Swiss Franc being bound to the euro at a cross rate of 1.20 was going to be outrageously bullish for the Swissy? We did here.
Regarding Petunia, could it be otherwise? She is a Sinclair, and presently there are 4 pilots in the family. No one lives in Alaska now. The only real question is rotorcraft or fixed wing? Dogs (which she is not too fond of) can drive. Why should Miss Petunia remain Earthbound?
Jim Sinclair is primarily a precious metals specialist and a commodities and foreign currency trader. jsmineset.com/
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