Spend, Borrow, Print,... Repeat

From Jim Sinclair at JS Mineset http://jsmineset.com/



Jim Sinclair’s Commentary


Look what I found in my email box this evening. I knew Weiss’s father when we both were at 2 Wall Street. Wasn’t the kid a super deflationist?




Dear JAMES,
The U.S. dollar resumed its swan dive overnight, hitting brand-new, one-year lows.
Meanwhile, gold — the world’s ultimate dollar hedge — surged nicely to within an eyelash of its all-time high.
But it should come as no surprise that global investors are beating the dollar like a red-headed stepchild.
After all — they know that U.S. Treasury Chief Timothy Geithner is going panhandling this week — begging and borrowing every penny he can to fund Washington’s precedent-shattering $1.6 trillion budget deficit.
Today, Geithner will rewrite the history books by dumping an all-time record $43 billion in new U.S. Treasuries on the market in a single day.
PLUS, tomorrow and on Friday, Geithner will return to the trough, borrowing an additional $69 billion to keep the lights on in Washington.
That’s a total of $112 billion in U.S. Treasury borrowing in just three, short days!
This is truly alarming: If you’re like me, you can remember a time not too long ago when U.S. Treasury borrowing was less than $112 billion for an entire year. Now, we’re borrowing that much in less than one week!
I wish that was the worst of it. It isn’t: So far this year, Geithner has borrowed a mind-boggling $1.41 TRILLION to fund Washington’s debt addiction — nearly THREE TIMES MORE than the Treasury had borrowed at this time last year.
And still, this is only the beginning: The Congressional Budget Office (CBO) has warned that Obama’s budget will add nearly $10 trillion in new government debt over the next ten years.
If the CBO is correct, our national debt will soar to well over $21 trillion by 2019. That’s more than double the value of all the goods and services our economy now produces in a whole year!
Meanwhile, over at the Federal Reserve, “Helicopter Ben” Bernanke is printing unbacked paper dollars like there’s no tomorrow.
Yesterday alone, in his ongoing attempt to keep Geithner’s precedent-shattering borrowing spree from sending interest rates into the stratosphere, Bernanke had to print more than $4 billion just to BUY treasuries.
THIS is why the U.S. money supply is skyrocketing! THIS is why sophisticated investors worldwide are recoiling in horror.
Protect yourself now or you’ll be kicking yourself later!
The plain truth is, the value of your money — your buying power and your standard of living are being sacrificed on the altar of Washington’s debt addiction.
But if you make the right moves beginning immediately, you still have time to shore up your financial defenses. You can shield yourself, your family and your savings and investments from disaster as this great dollar decline crushes the value of your money.
More than that: There are many ways to harness this historic convulsion to keep your wealth growing.
That’s why I will be presenting a complimentary online seminar entitled “Washington’s Secret War on the Dollar: Protect Yourself and Profit” — in two weeks; on Tuesday, October 6, 2009.
My mission is clear: To help make sure you have the knowledge and the specific recommendations you need to insulate your wealth and to keep it growing as this great dollar disaster unfolds.
This online briefing is absolutely free for you — part of our ongoing commitment to help you sidestep emerging hazards to your wealth and profit no matter what the economy throws at you next.
I’ll give you the clear, concise, unhedged answers to your most pressing questions about this crisis now.
Right off the bat, I’ll give you my shocking update on this great global war on the value of the dollar …
Weiss Research, Inc. 15430 Endeavour Drive Jupiter, FL 33478