Jim Sinclair: The Federal Reserve Has No Practical Option To End QE Without Collapsing Financial System

Image: Banzai7

The legendary Jim Sinclair has sent another email alert to subscribers regarding the take-down in the gold and silver markets Thursday on the release of the December Fed minutes.
Sinclair states that contrary to the Fed’s MOPE attempting to convince the market that QE will be phased out in 2013 as the economy recovers, There is no practical way that QE can cease here or in Euroland without a total and final collapse of the financial system.

Sinclair points out that the entire derivatives market hinges on the Fed’s unceasing QE, as the moment QE ceases, the US bond market collapses and the Fed must debt monetize all required debt, which means if QE stops, it starts up again immediately and in a crisis mode.

Sinclair states that QE cannot stop or the world as we know it instantly ends, and that the implications to what the Fed has done cannot be talked or manipulated away. The consequences are coming.

Click here for Sinclair’s Full alert:

4 comments on “Jim Sinclair: The Federal Reserve Has No Practical Option To End QE Without Collapsing Financial System
  1. Tao Jonesing says:

    All hat, no cattle. All opinion, no analysis.

    Jim Sinclair must be selling his book.

  2. Geneva Business Insider says:

    Jim is of course absolutely correct, as he has been for years, that withdrawing QE to infinity would collapse the system.
    Bearing this in mind, if you were in Bernanke’s position, with no remaining options on the table, would you do the same as he does…..I expect so!!!
    Therefore all the MSM Mope, the CFTC blindness, and the Bullion bank manipulation, are part of the desperate last attempts to avoid the inevitable.
    Just sit tight, have faith and enjoy the fireworks when they finally come. It will be so spectacular, it will more than compensate economically and emotionally for all that has gone before.

  3. It is going to get messy. Ben will keep the music playing as long as he can, but we are going down.

  4. johnny says:

    Sorry Jim, the Federal Reserve printing IS what’s collapsing the economy. If we want to save the economy, take the Gold out of Fort Knox and distribute it amongst the people. Then there will be money in the economy again.

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