JIM SINCLAIR COMMENTS AND A WARNING

Dollar Danger Ahead Posted: Nov 08 2008 By: Jim Sinclair Post Edited: November 8, 2008 at 11:19 pm Filed under: General Editorial Dear CIGAs, The Federal Reserve cannot be the lender of last resort to all nations near and dear and to all major US and international employers. President Obama’s 20 economic advisors will not accomplish anything real. The Federal Reserve under Bernanke has entered dangerous territory that up to now has been the bastion of academics. As the world turns to the Fed to be bailed out, the question will soon be who will bail out the Fed. The answer is clear - no one. The US dollar is in grave danger due to this shift to so far failed (Japan) academic solutions. In truth, all other solution are failing as well. This situation is bigger than the US Federal Reserve. The US Federal Reserve cannot accomplish what they have undertaken. If you don’t know that you simply lack a calculator with enough zeros. The US dollar as the common share of the USA cannot enjoy a bull market while their balance sheet is being torn to shreds. Gold is a currency, not a commodity. It has always been a currency. Industrial demand is a trivial constituent to the price of gold. There is no question about that. Gold as a currency moves inverse to the US dollar. It has always been so. It will always be so. Do not fail to protect yourself. You will need every avenue of protection that I have suggested to you. The US dollar is headed to .72, .62 and .52 on the USDX as a product of the move of the Fed into the “strategy of quantitative easing.” There is no doubt in the mind of those blessed by understanding that gold is headed to at least $1650. Order your shares as paper certificates while you still can. Potential confiscation of retirement plans now being discussed in legislative testimony is the most disturbing scenario I have ever heard. Consider gold confiscation now a potential whereas it was simply a bad dream before. Consider that Gold ETFs fit into the confiscation scenario assuming such a draconian act could actually be taken. Look for juniors that have strong characteristics of selection. These include juniors with strong management with proven track records that are willing to fight for their shareholders, ones with proven resources in the ground, ones that operate in politically sound countries, ones with no derivatives exposure and ones that have internal financing already in place. No we cannot provide you with a list - this is up to you to research on your own. If I were to construct such a vehicle it would be incorporated outside the USA, do business in a third country and trade outside the USA. Most importantly, the shares should be paper certificated with those certificates in my hands, not the hands of a US brokerage firm.