Sinclair - The World Is Now On Fire & There Will Be Hell To Pay

On the heels of another massive QE announcement being pumped into the financial system, today Jim Sinclair told King World News the entire Western world is on fire.  Sinclair also cautioned that there will be hell to pay for the reckless behavior the central banks have now laid out before us.  Below is what Sinclair, who was once called on by former Fed Chairman Paul Volcker to assist during a Wall Street crisis, had to say in this interview.

Eric King:  “Jim, we’ve just had the announcement of further QE, what are the dangers here?”

Sinclair: “The entire world is on fire and most people don’t even realize it.  The world is literally ablaze with the creation of money, and there will be hell to pay for what is taking place right now.  The monetary policy of Japan has now spread out from Japan to Europe and will eventually infect the entire globe.

Markets now give the appearance of having no rules.  This is a world that, for the time being, seems to have repealed the normal law of consequences, but I can assure you this will end in tears....

“Economic law cannot be held at bay, eventually it will deliver chaos because of the creation of enormous amounts of paper money.  The public has remained hypnotized by the constant parade of mainstream media propaganda claiming that everything is fine.  

The idea that the central banks will be able to unwind their balance sheets is totally false.  So the world is in the throes of a money printing binge, without having stopped to study what this has done in every similar situation in modern history to the functioning economies.  

With the printing presses wide open what we are really witnessing is monetization of debt.  Monetizing debt has always resulted in inflation, and this degree of monetization will result in a disastrous hyperinflation. 

A financial catastrophe is being concealed from the public.  The recent situation in Cyprus is only a small example of the type of revelations that are still to come.  We are beyond all rational limits.  Our central banks and our central planners are literally out of control.

This reckless behavior is obviously being caused by the terror of some disaster that has yet to be disclosed.  I guarantee you whatever it is has to do with the legacy over-the-counter derivatives, which total in the one quadrillion plus dollar range.

This is a mountain of paper, floating in space, and it has no financing.  This is why you are seeing an explosion of the printing presses.  God help us because I can assure you that another cataclysm is headed our way.”

Sinclair also added: “The action of the gold market is absolute confirmation that we have seen the lows of this reaction.  From this reaction gold is going forward to new highs.  Sure it will occur in the normal soap opera way that gold trades, but the low is in and a higher high is coming.”