Functional Financial Socialism. 

That’s what Jim Sinclair of JSMineset says the financial talking heads spread on TV.  Others call it uninformed BS.  I call it nonsense meant to mislead us, to keep true value hidden from the reaches of our minds, so we buy the slop they feed us, with nobody knowing the difference otherwise.  Besides, it’s all they give us.  Financial slop.

None of the Functional Financial Socialists are talking about a Jubilee.  Some of them sort of mention debt forgiveness out of the sides of their mouths, a sort of accidental afterthought, something that can be manipulated from the fringe.  Forgiveness of one’s financial responsibilities sounds like a good idea, but it will personally touch very few of us in reality.  It will go to those who wage the greatest debt; central banks, financial institutions, state and federal pensions.  It always does, in one form or another.  Bailouts, bail-ins, Jubilees.

Jim Sinclair warns that even if there is some kind of debt forgiveness, or financial “reset” as some are calling it, everybody can not be made whole.  That’s because there’s a lot more debt out there in the world than there is money.

And there’s no chance the world debt can be paid off, but there are those who will try.  And they will do it by expanding the money supply.  That’s the only thing central banks have left.  Print money, create more debt, lower interest rates, and get the hell out of the way. 

And most of the money that does get printed will be used to pay off the old debt.  Debt will just keep expanding, investment assets will become over bloated, shell corporations stocks will rise, and nothing new will ever get built.

If the banks try raising the interest rates even the slightest it will blow up the credit market, so the central banks are not going to be doing that ever again.  Credit failure is soon to become as big a financial issue as the falling U.S. dollar, we’re just not being told about it.  Those who preach Functional Financial Socialism on TV don’t have it in their scripts.

No matter what the blather is coming out of the White House, we really don’t have the world’s greatest economy after all.  The economic statistics our government and the rest of the industrialized world provide us with on unemployment, inflation, or growth, simply cannot be trusted.  The economy as we know it has reached the endgame.  So where does that leave us and our families?

THE PIN TO THE GRENADE HAS BEEN PULLED

We probably better run.  The real economy world-wide is rolling over.  Precious metals expert and Jim Sinclair’s partner Bill Holter tells USAWatchdog.com that you can see it especially in trade, where the financial statistics are more “forthright” than others government agencies can play with.

“You got two sides to the trade, and everybody’s reporting,” Holter says.  “So fudging in trade is a lot harder than a country fudging on unemployment, inflation, or growth numbers.”  That’s why it’s difficult to trust government generated numbers.

HYPERINFLATION

Hyperinflation is an important term for people to get their heads around,  Holter tells journalist Greg Hunter.  Hyperinflation is in our near future and it is something we’re going to have to beat if we’re going to get our families through the financial crisis that is merely in its beginning stages. 

The area that’s probably going to hit us hardest is how it will affect trade through a drying up of credit.  “Hyperinflation is not just central banks increasing the money supplies and diluting the currency,” Holter says.  “Hyperinflation can and we believe will be caused by a credit collapse.”

A credit collapse is what many economists fear most.  Because the world currencies themselves are debt.  Being debt, they are credit based.  “So a disaster in the credit markets – back in the old days when money was gold – was a deflationary event,” Holter says.  “But a deflationary event in the credit markets will create a hyperinflationary event in the real world, via currencies collapsing.”

Bonds will be destroyed.  We’re not paying you, sorry, will go the mantra.  “When the bonds are destroyed, it destroys the currency,” Holter says.  “The currencies are in a race for the bottom right now because central banks are competing to devalue (national currencies).”

He likens the example to where if you took a single country collapsing financially, like Venezuela, their currency would be sold off internationally.   How much are they going to get for it?  What will be the value of the currency when it comes time to buy a loaf of bread for your children?

And how will that translate to our purchasing power as the U.S. dollar continues to devalue?  The petro-dollar is heading south as we speak.  Gold is still being hammered downward to around the $1,400 range per ounce.  Those are our last two financial systems. 

So what’s left?  “Nothing,” Jim Sinclair says.

Which means the dollar just isn’t going to be used around the world.  Sinclair says, “The only thing holding is a contract settlement mechanism in Russia and China and everywhere else.”  But they continue to unload the U.S. dollar.  And the dollar will continue to go lower. 

And how much lower is low?

Jim Sinclair says we’re looking at the dollar being cut in half as part of this reset process.

WE’RE LOOKING AT TWO RESETS

The Fed and Treasury, and their equivalents around the world, are going to come up with the first reset, which will feature cryptocurrencies, “which will somewhat be tied to gold,” Sinclair says in the interview.  All we have to do is look at the strength of the crypto market.  Bitcoin has outperformed all the precious metals in a comparatively short period of time.  This proves big money is behind it, using the crypto world to lure global currencies, while playing the paper price control game against the precious metals.

In the first reset the dollar will be sliced in half.  The little guy is going to be cut in half in terms of buying power.

When this fails there will be a second reset.  “The second reset will take gold to a price that will balance the ability to pay global debt,” Sinclair says.  Which means the price of gold will one day end up going very high compared to what it’s been.

The second reset will be run by countries who own major tonnage of gold, like China, India, and Russia.  They’re not buying up gold as an investment.  It is an economic policy ingredient “to making a different kind of war,” Sinclair says.  War that’s killing those who print the U.S. dollar.

And, I’m afraid, we the people on the ground are going to end up the biggest losers.  Unless we prepare for what we’re about to see.  And load up on precious metals for the long term.