Sinclair "U.S> will be cyrused" (Great article!)

[Large Sarge]

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/19_Sinclair_-_The_US_Will_Be_Cyprused_%26_We_Will_See_%2450%2C0 00_Gold.html

[gunDriller]

Today Jim Sinclair spoke with King World News about the ongoing chaos and told KWN the world is witnessing something that has never been seen in history. Sinclair also warned that “the US is going to get Cyprused.” 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 and exclusive interview.

Eric King: “This was from Fed Governor Jeremy Stein’s speech, “If systemically important financial institution or SIFI, does fail, the losses would fall on its shareholders and creditors, and taxpayers would have no exposure ... Perhaps more to the point for TBTF (too big to fail), if SIFI does fail, I have little doubt that private investors will, in fact, bear the losses -- even if this leads to an outcome that is messier and more costly to society than we would ideally like.”


Sinclair: “What he is saying is that the potential losses are so large, and he is referring to the more than one quadrillion dollars in legacy over-the-counter market for derivatives, that nobody could create that much money.


So what’s pending now is so large, and these statements from Stein are confirmation that Cyprus is in fact the blueprint in the United States for coming financial failures....

“Recent events have also revealed that the paper gold market is in failure right now.”


Eric King: “So their intention is to ‘Cyprus’ the United States?”


Sinclair: “Yes. No question about it. It’s the legacy over-the-counter derivatives that are coming in for some adjustment that can’t be made, and the fractional reserve gold system has failed.


There is no gold there to deliver. What first gave rise to this was the German situation, but then when ABN AMRO shut gold deliveries down it accelerated. The reason they blasted the gold market was to camouflage the fact that the fractional reserve gold system, which is very important to financing and to the government, failed.


The truth is that when we take out these futures markets on a failure, gold is going to $50,000. Not $3,500. $50,000. We are in the midst of a failure right here, right now. That’s what this is all about. This takedown has been the ultimate can-kick.


This has been to stop the revelation of what the central planners are so panicked about, and the fact that the US is going to get Cyprused. They have now manufactured a situation right here at this point in time where it is almost impossible to save yourself.”


Fvcking A !

normally Sinclair keeps his price estimate conservative, like $3500.

[osoab]

Interesting timing.


http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
Fed Governor Stein Warns When A TBTF Bank Fails, Depositors Will Be Cyprus'ed (http://www.zerohedge.com/news/2013-04-19/fed-governor-stein-warns-when-tbtf-bank-fails-depositors-will-be-cyprused)Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 04/19/2013 - 15:50 "Perhaps more to the point for TBTF, if a SIFI does fail I have little doubt that private investors will in fact bear the losses--even if this leads to an outcome that is messier and more costly to society than we would ideally like. Dodd-Frank is very clear in saying that the Federal Reserve and other regulators cannot use their emergency authorities to bail out an individual failing institution. And as a member of the Board, I am committed to following both the letter and the spirit of the law."

[ximmy]

Bank 'bail-in' unlikely to touch Canadian deposits: Carney

Ooh thank goodness... (rollyeyes)

Mark Carney says policy-makers are working diligently to devise an international "bail-in" regime to prevent big bank failures, but he offered no guarantee global depositors would be protected under all circumstances.

Canadian savers with accounts in the country's six systemically important banks need not worry, however, he said at an event in Washington hosted by Thomson Reuters.
"Canadian institutions have substantial unsecured debt obligations in the wholesale market and as well as other classes of capital, and they have substantial capital as well, so once you stack all of that up, regardless of whether one would look to reach into it ... it's hard to fathom why it would be necessary," the Bank of Canada governor said.
Asked if this would include non-insured deposits - those over $100,000 - Carney referred to a statement a previous statement from Finance Minister Jim Flaherty's office that depositors were excluded.
In an e-mail response, Flaherty director of communications Dan Miles repeated the pledge: "The 'bail-in' scenario described in the budget has nothing to do with consumer deposits and they are not part of the 'bail-in' regime. Under a 'bail-in' arrangement, a failing financial institution has to tap into its own special reserves or assets (which it has been forced to put aside) to keep its operations going."
The statement makes no distinction between insured and un-insured deposits, but it is unlikely Ottawa would guarantee the latter.
The Canadian central banker, who is a few months away from heading the Bank of England, says banks must have a set of buffers in place to draw on in an emergency.
Speaking in advance of G20 and IMF meetings, Carney appeared to disagree with the approach taken in Cyprus last month that involved taxing deposits, but would not state his personal position because he said it might be misconstrued.
"The bail-in approach broadly speaking, not bail-in as it was performed a couple of weeks ago in Cyprus, but bail-in as a component of addressing systemic risk ... is an absolutely necessary element, it doesn't solve everything but it's absolutely necessary," he said.
As for Cyprus, he said simply: "It's done."
The March budget announced that Canada intended to implement a "bail-in" regime for systemically important banks to ensure that in case of failure, there would be no need for governments to bail them out. In Canada, those banks are the Royal Bank (TSX:RY), Scotiabank (TSX:BNS), the Bank of Montreal (TSX:BMO), the Canadian Imperial Bank of Commerce (TSX:CM), Toronto-Dominion (TSX:TD) and the National Bank (TSX:NA).

http://www.obj.ca/Canada%20-%20World/2013-04-19/article-3223347/Bank-bailin-unlikely-to-touch-Canadian-deposits-Carney/1