Jim Sinclair’s Commentary

Here is an important opinion that should be given serious consideration.

Dear Jim,

I doubt the Chinese will allow meaningful appreciation of their currency under the current dollar system. I propose that they are way too smart to do that. Revaluation of the Renminbi forces the Chinese to bear the brunt of what Fieldstien referred to in the FT as global imbalances. The US shoved a lot of worthless paper down people’s throat. They also knew damn well what they were doing and its eventual worth. The Chinese may speak willingly, but plan is already set. There’s no way that they will revalue with the intention of rebalancing and preserving the dollar based system. The non-dollar settlement of energy contracts between Russia and China (eventually all BRIC nations) supports this thesis.

If the Renminbi revalues, it will be within the context of a transitional IMF super currency or their own Asian block currency. A currency in which they intend to control.

Those that control the means of production will ultimately control the global economy.

CIGA Eric