I will be on my way to Tanzania next week. Except for the time in the air, I will not be out of contact.

My trip is to Dar es Salaam after which I will be going to Mwanza and into the field.

There is internet access at the camps I plan to stay at. That should keep us in close touch.

Regards,
Jim

Please click the chart to enlarge in PDF format.

Part two of Jim’s interview with Eric King of King World News has been released. Click the links below to listen to part one and two

Click here to listen to part one of the interview…

Click here to listen to part two of the interview…

The following is the first half of a two part interview completed this weekend with Eric King of www.KingWorldNews.com. Part two will be released later this week.

Click here to listen to part one of the interview…

Greece will fail and be rescued is all that is discussed in the financial world. Here is the real skinny:

1. Greece getting bailed out means QE (printing of money) to infinity. That means gold would rise from here to $1650 by January of 2011, or as Martin Armstrong said, by June of 2011. The dollar would fall. Equities and commodities would rise.

2. Greece getting flushed means that would enrich the CDS OTC derivative tool. Immediately the next target currencies will be attacked by this tool. Currencies will fall like dominoes. At first the dollar will strengthen, equities will fall and gold will go lower. However, soon the recognition will come that a disaster has occurred that is more serious than the Lehman flushing. Confidence in currencies will fall everywhere. Gold will then rise not to $1650 by the same time in 2011 but to $5000 and perhaps beyond.

Either way both paved the road to a single virtual reserve currency and a single Central Bank (IMF) of Central Banks.

If Greece is bailed out it will take longer for the establishment of the single virtual reserve currency. If Greece is flushed it will happen so fast you will lose your breathe.

Either way I see gold as the only reliable fundamentally correct safe harbor. Gold will play a part at a very high price with the single virtual reserve currency in order to keep gold from being a competitor with it.

Gold’s role will be in the form of the Federal Reserve Gold Certificate Ratio, not tied to the dollar, but rather tied to the single virtual reserve currency in a ratio to a measure of world liquidity. There will be no interest rate automaticity to the new form for gold’s role in a monetary system. It will follow the many articles I have written on the FRGCR but not tied to the dollar but rather the single virtual reserve currency.

Gold will not be fixed or convertible but will trade within a market as a close band of the price gold is trading at when the single virtual reserve currency is created and will lend to this construct some real validity.

I do not favor any of this, but it will occur.

There is no other possibility to this unprecedented calamity at hand.

Respectfully,
Jim

Good Morning from Toronto!

For those that think the Greek situation is a typical slow motion process of the European debating society, you need to focus on the fact that Greece will be out of money most likely in the next six weeks. Since there was a failure to float a debt offering last week, it might in fact be sooner.

This situation is not going to drag on for a long time. It will reach crisis levels in weeks.

The Greek state of the EU, like any major state of the US, will be bailed out as it reaches crisis levels. The only question where Greece is concerned is the means of and principle to the bailout mechanism.

QE to infinity is the only way out of this Western world financial crisis.

The US economy is not recovering but is in fact rolling over again. Forget any mope out of Bernanke today.

Stay focused and do not be confused by day to day noise.

Respectfully,
Jim

The final Pillar in the gold bull market is a bear market in US Treasuries.

The increase in the discount rate to 0.75% is driven by market realities and a desire to be able to sell US Treasuries as foreign demand falls off.

The bull market in gold moved from $400 to $887.50 in the 1970s as interest rates rose from 3% to 14 7.8% on Ten Year money.

Once again the knee jerk reaction is to sell gold and buy the dollar. Be assured this must happen.

Because the final Pillar is falling while Gold is over $1000, you can look at Armstrong’s $5000 prediction as a realistic possibility.

Stay the course.

Respectfully,
Jim

Jim Sinclair will be hosting a complimentary talk on markets February 25, 2010 from 2pm to 4pm at the Marriott Toronto Downtown Eaton Center Hotel. The talk will be followed by a short question and answer period.

Due to the extremely limited space, we expect this event to fill up immediately.

If you wish to attend this seminar, YOU MUST REGISTER by emailing 2010CIGAMeeting@gmail.com.

Once registered, you will receive an invitation to the event. Due to the extremely limited capacity, only those presenting invitations at the door will be permitted to enter.

DVDs of the talk will be made available at a later date for those of you who are not able to attend.

Thank you all for your continued support!
Jim Sinclair and the JSMineset Team

I would like to invite you to listen to my most recent interview with Eric King of www.KingWorldNews.com.

Click here to listen to the interview…