Today legendary trader Jim Sinclair told King World News that despite the volatility in gold and silver, not only will any setbacks will be short-lived, but we are now looking at the very real possibility of a major short squeeze in the metals. Sinclair also spoke about what has just taken place in Cyprus, the Western media blackout of those events, and what it means for investors going forward. 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 remarkable interview.
“There has been a total blackout in the Western mainstream media regarding what just took place in Cyprus. Even where there was even scant reporting about Cyprus, they only reported approximately 1/3 of the amount of the assets that have effectively been stolen.
The takeaway I have, and the shock I have, is that the news is now so selective in the so-called free Western hemisphere….
Eric King: “Jim, what do you make of the fact that there was virtually no reporting outside of KWN on this situation?”
Sinclair: “What that tells me is that ‘bail-in’ is now a go globally. There is no question that if you were to analyze the various initiatives in New Zealand, Canada, the United States, Great Britain, etc, you would know that ‘bail-in’ is definitely being framed and will now be applied as a replacement for ‘bail out.’
So the fact that the news of the $4.2 billion which was just stolen from accounts in Cyprus didn’t make any mainstream US news, and wasn’t even mentioned on financial media during the day, tells me there is definitely a feeling that what has taken place, and what is still to take place, will disturb the ‘social order.’
Control of the news has always been predicated on what it is believed the public can take. The fact that this was totally blacked out underscores without any doubt that ‘bail-in’ is the method which will be used in any future bankruptcies in the banking sector.
The move to steal money from bank accounts, especially as the economic indicators are now turning down off of what has only been a sideways recovery, indicates to me that as the economy continues to worsen, the real condition of the underlying balance sheets of financial institutions will be exposed.
At that point there will be significant needs for funds in order to maintain the integrity of the Western world’s financial institutions. So once again, KWN readers around the world need to understand that ‘bail-in’ is definitely coming.”