The following is from Jim Sinclair. He believes, as do I, that what is going on in Washington today is merely for the tourists. It has no bearing on our ultimate outcome other than a possible short deferral in the economic collapse. Our economic tipping point was passed several years ago.
Everything done since then has only made the ultimate ending worse than it needed to be. It has bailed out the influential friends of Washington and shifted their mistakes onto the backs of taxpayers and those not yet born.
Other than his reference to the price of gold, I am in complete agreement with what he says:
Have you thought about all the dramatics now taking center stage in the media? What compromise will be adopted that will allow for the US to avoid default by raising the debt ceiling?
Raising the debt ceiling is the problem and not by at means a solution. The race between dropping revenues and increasing costs will not be settled by politicians that do not even understand the problem.
The resignations of key economic personalities in the present Administration is systematic of the solid nature of the downward spiral that has gripped Western finances since the failure of OTC derivatives turned a normal recession into a long term depression.
There is no event that will turn the tide of the ramifications for poor economic management. Nothing can stop Gold, Silver, the Swiss and the Cando now.
The present drama of tax increases and spending cuts, like the release of oil, means nothing whatsoever even in the medium term.
The damage is done as the damage is cumulative. Day to day events are irrelevant. Day to day market activity is interesting but meaningless.
The die is cast. All we can hope is that gold is not headed to $12,500.
