Posted On: Thursday, January 17, 2008, 5:45:00 PM EST

The Panic Starts

Author: Jim Sinclair




Dear CIGAs,

There is no doubt the Fed and the PPT are meeting right now. A drop of over 300 points on the Dow after the Chairman of the Federal Reserve speaks publicly presages a $1000 break in gold coming quite quickly, if not tomorrow.

Unless the equity markets can be calmed, a panic is about to happen, making the statement "This is it" a horrible reality.



If the equity markets cannot be calmed then:

* Recognize this is the Formula happening like everything else much sooner and much bigger in its implications than anticipated.
* Gold will rise to $1650 as an almost immediate effect of what will be done to attempt to fend off a total panic starting to take place in general equities, therein threatening to be followed by all credit markets of all kinds.
* The funds and hotshot short term traders in gold shares will be killed by the upward explosion of the gold price about to occur.
* The PPT and the Fed will step out of gold’s way because gold is one of the tools used in 1930 by Roosevelt and in 2000 by Bush. It will be used again now on the upside.
* Gold is the only insurance there is against what all this means because a panic in equities will blow the financial system, already coming apart, to smithereens.
* All country funds would shut down on any further investments in "at the wall" financial institutions.
* The rollover in credit and default derivatives would exceed the entire foreign debt of the USA.
* The rest of the $450 trillion dollar mountain of derivatives would start a disintegration like nothing you have every seen in your lifetime.
* Consumer demand would slam shut.
* The auto industry might as well go into liquidation this coming Monday, avoiding the June 2008 rush.
* The US dollar would burn a hole in the floor going directly to .5200 or lower.
* As the dollar disintegrates gold would rocket to and through $1650 in days.
* The markets for general equities would all have to institute total trading halts every 100 points on the downside for 30 minutes each.
* All commercial call loans would be called.
* All debtors one day late on any payment, lacking grace period, would be liquidated. All debtors over one day of the grace period would be liquidated.
* It is clearly visible to anyone with eyes or a mind to think that the PPT has lost all semblance of control in the equity markets and will soon in all remaining markets.
* The commercial paper credit market which is almost dead will die totally.
* Should no emergency action take place soon, you will see an old fashioned panic of the 1929 variety.
* Just as emotional fools sell gold and gold shares, be assured that more emotional general equity fools will unload and bring the averages down more than ever in history in one day.
* Recognize this is the Formula happening like everything else much sooner and much bigger in its implications than anticipated.
* Emergency action will be all splash and theatrics but truthfully the cat is out of the bag. It buys some time but corrects nothing. It makes the Formula 100% correct.
* There now must be EMERGENCY ACTION because the Chairman of the Fed has BOMBED OUT PUBLICLY and a PANIC is about to occur. Expect EMERGECNY ACTION in days, not weeks.



If you have not protected yourself, you may only have days to do so now.

I suppose shorting gold at 904 was a bad idea then!

Now is a lot different to the crash of 1929. The banks will want their money back but not straight away. The US and UK financial - including property - market will just stagnate for about 10 years or so. This article makes sense. UK house price crash in http://www.hiday.net/

You'll be wiped out. As Sinclair says, gold will be the only insurance.

I've got a stop on at 900 now. Showing good support at 880 to date.

Wake up. This is not about houses anymore. This is very serious and very urgent. The whole system seem to be coming unglued. If the they don't impose emergency action NOW and wait until the monoline insurers go to the wall, 1929 will look like a piece of cake.

* Emergency action will be all splash and theatrics but truthfully the cat is out of the bag. It buys some time but corrects nothing. It makes the Formula 100% correct.
If you have not protected yourself, you may only have days to do so now.


These phrases sound familiar ...

Over the past few months I emailed him several times links to hpc and he never bothered to reply or publish them.

At least now I know he read them.

Sweet.

T H I S _ I S _ I T !

Over the past few months I emailed him several times links to hpc and he never bothered to reply or publish them.

At least now I know he read them.

Sweet.

The RBA believes the boom in markets for shares, bonds and housing in many countries is unsustainable.

Over the past few months I emailed him several times links to hpc and he never bothered to reply or publish them.

At least now I know he read them.

Sweet.

IIRC the Markets soon recovered, any idea the price of Gold on that infamous Black Monday.

Did the World end, not as I remember.

Having slept through at least 2 earthquakes, I could easily have missed it.

Interesting to look back at the events of 1987.

Ooo 1987 Dow Jones fell from $2700 to $2000 with gold somewhere between $400 - $500. Almost makes todays gold price of $880 look cheap.

Time for some Dannii: http://www.youtube.com/watch?v=eAPSS4J5PJ8

I just have one question. On the day after the world ends, will I still be able to get some breakfast ? I can't start the day without some breakfast.

Looks like i blinked and mist all the fun and all i got from the TV was about a plane crashing at heathrow.

must not panick the sheep i guess.

i'm starting to run out of storage room for my food supplies so what shoulod i do next

F***ing hell, I might start taking Prozac before i come to this board 8(

The fear is palpable in the City at the moment

Is it?

People are worried about redundancies but not armageddon.

People are worried about redundancies but not armageddon.

The monoline situation could be fixed in extremis by one call by the Fed - just nationalise and instead of it costing $250bn, it costs $10bn.

Simple really.

People are worried about redundancies but not armageddon.

The monoline situation could be fixed in extremis by one call by the Fed - just nationalise and instead of it costing $250bn, it costs $10bn.

Simple really.

Exactly. How to cause a hyperinflation - Chapter 1.

They will do it. Read your Bernanke.

I completely disagree with the article at the start of this thread regarding gold.

My interpretation of Bernanke yesterday was that the Fed is doing all it can do to NOT inflate it's way out of this crisis. With the data we've had since Christmas and the collapse of the DOW, how easy would it have been to announce an emergency rate cut? It's not happened! And Bernanke yesterday sounded like it's not going to happen. Hence the DOW falling further. This week has suprised me to be honest because before this I saw a rapid inflationary period in which the Fed slashed rates a la 2001. My mind has now been changed. I think they are scared of the falling $ and inflation so are going for a short sharp crunch. This will be deflationary and I think the action in Gold over recent days supports my view.

I am heavily short gold at 894. Originally this was simply hedging my physical gold position but now I am heavily short.

You'll be wiped out. As Sinclair says, gold will be the only insurance.

I completely disagree with the article at the start of this thread regarding gold.

My interpretation of Bernanke yesterday was that the Fed is doing all it can do to NOT inflate it's way out of this crisis. With the data we've had since Christmas and the collapse of the DOW, how easy would it have been to announce an emergency rate cut? It's not happened! And Bernanke yesterday sounded like it's not going to happen. Hence the DOW falling further. This week has suprised me to be honest because before this I saw a rapid inflationary period in which the Fed slashed rates a la 2001. My mind has now been changed. I think they are scared of the falling $ and inflation so are going for a short sharp crunch. This will be deflationary and I think the action in Gold over recent days supports my view.

I am heavily short gold at 894. Originally this was simply hedging my physical gold position but now I am heavily short.

You don't half talk alot of crap, Goldfinger.

It would simply prevent deflation, not create hyperinflation.

We'll see. If they find more and more black holes, and SWFs and sheiks don't want to make up for them anymore, they have to effectively create this money to make up for it.

USD will flow back into the US at high speed as foreign investors get out of anything US. This will create a lot of inflation IMO.

Bernanke is at the place where he is because he is known as someone who thinks he could have avoided the Great Depression by reinflating the system. So, what the heck do you think he will do NOW that the Greater Depression seems to be starting?

We'll see. If they find more and more black holes, and SWFs and sheiks don't want to make up for them anymore, they have to effectively create this money to make up for it. Since the sentiment changes, USD will flow back into the US at high speed as foreign investors get out of anything US. This will create a lot of inflation IMO.

Looks like i blinked and mist all the fun and all i got from the TV was about a plane crashing at heathrow.

must not panick the sheep i guess.

i'm starting to run out of storage room for my food supplies so what shoulod i do next

Not cut rates. If he was going to slash rates as a way out we would have seen cuts already this year. I agree it's suprising given his helicopter reputation but the events are telling their own story.

People are worried about redundancies but not armageddon.

The monoline situation could be fixed in extremis by one call by the Fed - just nationalise and instead of it costing $250bn, it costs $10bn.

Simple really.