Jim Sinclair’s Commentary

Extremely good comments from an extremely gifted intellect.

Jim,

Now the most dangerous phase of the fiat money and credit cycle begins,

The extent of last year’s financial collapse caused deep systemic shock and insecurity to world governments, democratically elected political leaders by their nature are insecure and need to believe they operate within a predictable system that ensures their security and control and that future events over which they have authority progress substantially according to expectations or at least gives them adequate cover if they don’t,

The shock of last year’s events were of such magnitude that the resulting threat caused a temporary focus away from many national interests in favor of supranational solutions, governments in this instant looked to find their bearings, needed a breathing space and instinctively looked to rally around a common cause. It was almost as though national interests were paralyzed and a common cause ignited as an alien spaceship hovered menacingly in the sky threatening the existence of earth.

From disagreements emerging at the world economic forum at Davos it appears that we now move to the next entirely predictable but very dangerous, accelerating and possibly unstoppable phase where governments regardless of culpability find it politically expedient to polarize and hold other nations responsible for their problems,

CIGA Peter

Dear Jimmy,

OF course if this develops on an actual basis (countries actually start to do more protectionist things) and not just on a talk basis (countries brag how good they are and blame other s for world problems), then we have trade wars and a very long depression. My call for a depression ending in mid 2010 would have to be changed to a depression ending in 2012 or later.

Monty Guild
www.GuildInvestment.com