Expect Another $17 Trillion in QE

via: Wealth Wire

Jim Sinclair, legendary investor known for accurately predicting the timing of gold’s bull market in the 70’s, recently predicted that the U.S. should expect another $17 trillion of quantitative easing in addition to the other $17 trillion that has already been pumped into the economy.
Consequently, Sinclair asserts that the “true range of gold is $1,700 to $2,111” when you take that QE forecast into consideration.
Because the Federal Reserve isn’t focused on building a sustainable monetary system where money maintains a stable value, investors will continue to flock to the gold market to hedge the inevitable inflation spikes that will ensue following a new round of quantitative easing.

*Image courtesy of Capitalism, Economics, Politics.
Sinclair says this simply reflects the notion that the Fed has no mindset for building; rather, “they have a mindset to reward destruction.” The fiat monetary system as we know it resembles an empty black hole – money goes in to fill the whole, but nothing comes out of it.
“The $17 trillion that came into the system, in total, has gone into the hands of the winners on the derivatives. The flushing of Lehman made that a necessity. Those people with the money are not lenders. I would say that sitting in front of Goldman Sachs with a tin cup would not get you too far.

Once you start quantitative easing, such as we have, $17 trillion, how in the world do you pull back from it? How do you stop without having everything collapse behind you? Truth be known, Bernanke didn’t have a choice. If Bernanke did not do QE, this place would look like the day after (the movie) ‘Mad Max.’
Although Mr. Sinclair assures readers that he does not support QE as being “right”, he says he absolutely understands that it has become a necessity amidst today’s grim economics.
Moreover, Sinclair is not skeptical on this matter. He is confident to the point of claiming there will be “QE to infinity”…a lesson learned from Japanese experience.
After 50 years in the business of finance with numerous sources and contacts, Sinclair emphasizes that quantitative easing was made quite clear to him even before Bernanke’s speech to the Washington group and before quantitative easing began.
If individual investors want real results that they aren’t finding from other financial markets relying on how well the dollar is performing, interest rates, and economic strength, they’ve got to go for gold.
The Key to Success, Opportunity, and Long-Term Rewards:
Sinclair releases his top gold pick in a King World News interview, and also reveals how gold investors are prospering using the “thesis of leverage”. You can listen to the whole interview here.

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