JIM SINCLAIR COMMENTS AND A WARNING

Posted On: Wednesday, October 08, 2008, 8:56:00 PM EST Gold and Dollar Market Summary Author: Jim Sinclair and Dan Norcini Dear Friends, The Big Gun was rolled out today. The equity market had steadied from its recent drastic action and Paulson picked up the baton and ran with it. He is considered to be the best public speaker of the Money Men. The Bloomberg ladies were in total glee as the market was up about 125 points. As Paulson said that not all financial failures would be bailed out (now a major fib) the equity gang lost their instructions. In the blink of an eye what was up 125 points was then down almost 200. I imagine being a good public speaker does not carry much weight in a situation that can be described as "OUT OF CONTROL." If the Washington gang really does not want the financial calamity now in progress, statements that suggest another major financial entity could go bankrupt without a bailout should be avoided. If all powerful Money Man persists in bringing up thoughts of Lehman's Chapter 11, the equity market will have no bottom. Letting Lehman go after instituting bailouts of others is the event that has given way to this "Out of Control" condition. Out of Control means just what it says. If things were under control the equity market would not have given a Brooklyn Cheer to the President of the USA and the Chairman of the Federal Reserve and there would not have been an unprecedented drop of interest rates today. Bank holidays are on the way. Every major retirement fund is stone broke. Most money management entities are full of treasury OTC derivatives, not treasury instruments, and are therefore also broke. The local banks are in the web of the Money Center banks and are therefore in trouble they do not even know about yet. The paperwork behind OTC mortgages is a total disaster, adding more mess to an already major financial planetary killer. I am sorry to say that there is no way to make this process go away. The downward spiral will make its way to the bottom. Gold will be the tool that finally stops the plague in the form of the Federal Reserve Gold Certificate Ratio, revitalized and modernized, but not until the public is in such a condition that it cries out to God to stop the carnage. That will happen sometime before January 14th 2011. Protect yourself, this is out of control! Respectfully yours, Jim