JIM SINCLAIR COMMENTS ON RECENT DOLLAR ACTION AND OTHER ELEMENTS OF THE MANIPULATION NOW OCCURRING

FROM JSMINESET.COM THURSDAY 12/17/09

This morning when the opposing members of the Chairman of the Federal Reserve confirmation committee were speaking, their faces were shown with lips moving but no sound. There were over-spoken by the F-TV so the net result is you did not hear one word.
Well that should go some distance to tell you the smoke and mirrors that underlies the dollar rally that money managers and F-TV have talked themselves into. Once the gossip gang had decided that the unknowable Carry Trade had become as the professor said, the Mother of All Carry Trades, luncheon discussions turned to when and how high the New Year’s rally in the US dollar is going be.
The euro has been talked down from the $1.52 level by those that had established very large shorts in the same manner that we are all used to. The employment figures changed a statistically insignificant amount and the MOPE machine went to work.
Gold of course came down inversely to the stronger dollar.
The question now that the USDX has appreciated above the .77 level is what fundamental legs are left after the weak hands are ejected? You need to know that FOREX houses have come on to that focus on Gamma’s account at 500 to 1 leverage.
The rub in the conclusion that there are little to modest legs in this short squeeze is because the Fed is dedicated to maintaining low short terms rates as they definitely understand the Peanut Brittle recovery. The highly professional and well financed money managers will not abandon the utilization of the dollar as a carry currency, having once again gotten the Fed’s green light.
Fundamentally 10% unemployment would delight the markets, but what a hell of weak basis upon which to anticipate any major recovery in a consumer driven Western economy.
If you can stand the heat in the gold kitchen it will protect you from the madness of monetary mismanagement, rulership of the banksters and capitulation of FASB. The alternative is to buy the dollar and get a spiritual experience without the need for a guru in the not too distant future.