Conflict Erupts As Elites Plan More Wealth Destruction

Conflict Erupts As Elites Plan More Wealth Destruction

Today Jim Sinclair warned King World News that conflict has now erupted between Western central planners as the elites have planned further wealth destruction. Sinclair also cautioned that people in the US and Canada will be shocked when their wealth is stolen. 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.

<![CDATA[//><!]]>

-->

<![CDATA[//><!]]>

-->Sinclair: “How in the world can Lagarde say that Cyprus is a one-off? The spreading of bail-in being written into Canadian law, New Zealand law, as well as in other countries, tends to indicate that what has been done in Cyprus is in fact a test case for further application. If it wasn’t, it was an economic act of war by Europe against Russia.”

 

Eric KIng: “Jim, when you see that being written into law in countries elsewhere, they are not setting that up for no reason.”

 

Sinclair: “No. They are not writing that in because some junior clerk supports the approach. When countries write things into legal documents it passes legal review. So the possibility of that being a mistake is nil....

 

Continue reading the Jim Sinclair interview below...

 

Eric King: “So when Lagarde and others are all coming out on the wire today and saying Cyprus isn’t a template, they are all lying?”

 

Sinclair: “Yes. Today the European Union and Monetary Commissioner Olli Rehn also said the Cyprus model can be completely ruled out and it will never considered again. But if it isn’t an indication, why is this model being picked up in so many other countries?

 

 

We do know that Bernanke and Draghi took exception to what Lagarde and the IMF orchestrated in Cyprus, there is no question about that. The bottom line here is that Lagarde and the Dutch Finance Minister let the Cyprus model out of the bag too early, and what it has created is extreme fear on the part of depositors which could turn into chaos.

 

Bernanke and Draghi also took exception when the Dutch Finance Minister declared the action in Cyprus to be a template for further use. The statement by Lagarde and others today is simply a follow-through of the Dutch Finance Minister’s backpedal. Both Bernanke and Draghi were upset because this template was brought to light in a situation which did not merit it.

 

 

In truth, you can’t use Cyprus as the template. If the major savings of the citizens of industrialized nations are subject to any degree of confiscation, it will completely destroy the confidence that has been created at the cost of trillions of dollars. This is the feeling that general depositors are safe. If they reverse that, this whole thing will implode.”

 

Eric King: “Jim, when you say, ‘implode,’ can you give readers around the world an idea of what we would see?”

 

Sinclair: “What you would see is depositors withdrawing their money from every bank they can. In essence this would be the mother of all bank runs. They would take their money out of the system. But nobody in their right mind will maintain significant deposits in light of the possibility of confiscation.

 

So central planners are now between a rock and a hard place. Cyprus has placed us into a lack of definition. What Mrs. Lagarde and others are attempting to do right now is make this situation go away.”

 

Eric King: “This was from John Embry earlier today in his KWN interview: ‘You can’t create more and more debt, which is required to get economic activity moving forward at a decent pace. They will try, but ultimately it will reflect itself in inflation. So what we potentially face is the first global move toward hyperinflation in world history.’ John believes this move to create velocity in money could blow up in their face.”

 

Sinclair: “It can blow up in their face because money moving on fear will only make a move once. Velocity of money requires that the money be moved multiple times, and deal with items of Gross Domestic Product (GDP).

 

Items of Gross Domestic Product are all that is measured in the velocity of money, and running money from an account and into gold isn’t going to have any impact on velocity of money except to make it disappear. It will be hidden because it will be running from fear of confiscation. That’s a fact. It will take the velocity of money straight to the floor, followed by a crisis of confidence that would then take the velocity of money to historic highs or global hyperinflation.

 

But global hyperinflation in these circumstances will only develop out of a significant, if not total loss of confidence in the US dollar. When the US Dollar Index is back under .72 the world will be flirting with hyperinflation. It’s all about confidence.”

 

Eric King: “How do central planners maneuver on the chess board going forward when any misstep can result in tremendous destruction or hyperinflation?”

 

Sinclair: “You would think the answer to that would be extremely carefully. But those who are in power have tremendous egos, and in the case of Mrs. Lagarde, seem not to be in control.

 

So what we have been talking about is a breakdown amongst central planners. This is the downside of globalism. Everybody affects everybody else in the Western financial world, and what we have just witnessed is a horrendous misstep in the parade of central planners.

 

 

 

When you see that Lagarde, the European Union and Monetary Commissioner Olli Rehn, as well as others are backpedaling, it means that there is division. It means that they may have stepped out of order and everybody is not in agreement. This also reveals a major chink in the armor of central planners and clearly shows they are overrated, and maybe critically overrated.

 

I guarantee you these people don’t have a clue in hell as to how to proceed from here. But Bernanke and Draghi want to keep what they have bought. They went into the store of globalism and spent trillions of dollars, but they did buy confidence in bank deposits.

 

If they feel that confidence in bank deposits is seriously challenged, they want out. They spent trillions of dollars to buy confidence in the financial system. If Cyprus is an outline of future plans and activities, then all of that money will have been wasted because confidence will in fact be destroyed.

 

If the major theft of bank deposits is repeated at any point in the future it will happen without any warning and it will happen over a weekend. Meaning, on Monday morning US and Canadian accounts will be hit and people in North America will simply be shocked that their wealth has been stolen.”