Financial Watch Dates

It appears that the Nov. 1, 2009 bankruptcy of CIT is just the beginning of something much bigger. Especially since it came on the heels of Capmark (formerly GMAC) on Oct. 26. Both collapsed as the result of the contraction of the commercial real estate market. And both form the backdrop of the G-20 meetings this week end (Nov. 6-7) at St. Andrews, Scotland.

Note that Nov. 6 is 414 days ("cursed time") after Sept. 18, 2008, which was the date of the collapse of Lehman Brothers and AIG, when it was reported that "financial armageddon" was barely averted.

Likewise, on Nov. 5 is Announcement Day for the Nov. 9 Treasury Auction, which some say will be catastrophic for the US dollar. (It depends largely on what China does.)

Anyway, the Lord has confirmed Nov. 9 as the next major watch date, and I strongly suspect that these two latest watch dates (Nov. 1 and 9) are closely linked.

I learned recently that economist Jim Sinclair has been warning since last June about the Announcement on November 5 and the Treasury Auction on November 9. The following was posted June 29, 2009:

130 Day Warning

Yes, that is right. You have a little more than 130 DAYS before MOPE (management of perspective economics) falls into the abyss of loss of confidence in the US dollar.

The event will be the birth of hyperinflation in the US and elsewhere to the horror of the spin media. Crude has been trying to explain this to the public, but so far they have not gotten a clue. Crude strength is being called a hedge against the dollar as fundamental energy analysts are hard pressed to explain a rise from $30 into the $70s with NO pick up in US economic activity and NO massive draw down on supplies. The oil price is an example of the arcane and exoteric mechanism of hyperinflation soon to take gold to $1224, $1650 and then on to Alf and Armstrong’s numbers. This phenomenon is something that the murderous Children of the Corn that run the hedge funds will not accept until it happens.

Happen it will.

130 days is no time at all. Are you prepared?

http://jsmineset.com/2009/06/29/130-day-warning/

He issued subsequent warnings as well. This one on June 30:

http://jsmineset.com/2009/06/30/update-from-china/

This caused quite a stir, and people asked him what was behind this countdown. He answered it on August 14, 2009:

http://jsmineset.com/2009/08/14/the-motivation-behind-the-countdown/

He explains that the US government (i.e., the Fed) has been engaged in "quantitative easing" for many months this year. That simply means that the Fed has been buying up its own debt because others are not buying it up as fast as the Fed is creating the money. The pace of money creation is so huge this year that China is concerned about its $800 billion reserves held in US dollars, whose value has been falling seriously in recent months.

The Fed committed itself to "quantitative easing" until the end of October. China wants the US to stop eroding the value of the dollar now. But the Fed, says Jim Sinclair, cannot stop it without crashing the US economy.

Here is where the bankruptcies of CAPMARK and CIT come into play. The Fed knows that we are on the verge of the next great bubble-burst (commercial real estate). If they stop the creation of new money, the economy will immediately go into free fall. It's the Rock vs. Hard Place choice. And the squeeze is coming, says Sinclair, on a pre-planned date: Nov. 9, 2009.

According to Sinclair in the above site:

You will note that the QE program was extended until October, particularly the end of October…

 Quantitative easing cannot be curtailed in 2009 or 2010. To curtail QE as the US Federal Deficit explodes would be to release interest rates to the marketplace that could easily take them to late 1979 early 1980s levels due to a currency event.

 The USA cannot support a Super Sovereign Currency. To do so would be to disavow the US dollar as the universal reserve currency which the financial leadership of the USA still adheres to, seeing this period as only an aberration in the constant. . . .

Add this all together and you get a November bull’s eye for a loss of confidence in the US dollar internally as well as externally…

 Van Mises, Ricardo and Adam Smith have not been laid to rest by market manipulation. The wind is in the face of business now as a long—term trend. We are returning to basics and moving away from the fancy, complex and fraudulent.

 All of this could have been fixed prior to the event of Lehman declaring bankruptcy. Now there are no PRACTICAL SOLUTIONS and NO PRACTICAL EXITS FROM CONSTANT QE.

 Pandora’s Box is open, only to be closed by markets as the downward spiral goes to its practical end, a return to commodity money.

On October 26, Sinclair wrote:

"Think CIT and Capmark before you listen to suggestions of curtailment of QE or increased central bank interest rates in excess of other major currencies."

http://jsmineset.com/2009/10/26/in-the-news-today-351/

In other words, he is saying that the bankruptcy of Capmark and CIT makes it virtually impossible for the Fed to stop the printing presses. This, I think is why Nov. 1 and 9 have been revealed as "watch dates." On October 27 he wrote this about the upcoming G-20 meeting in Scotland:

October 30th the Fed is planning to curtail QE regarding Treasury auctions.

November 4th is the FOMC [Federal Reserve Open Market Committee] meeting most likely to contain discussions of timing for the exit from economic stimulation.

November 7th is the G20 meeting at which BRIC* nations will anticipate a cessation of QE and a commitment to establish a currency alternative to the US dollar.

* BRIC = Brazil, Russia, Iran, and China trading bloc.

http://jsmineset.com/2009/10/27/when-push-comes-to-shove/

Whatever the case, Nov. 9 could prove to be an important date that determines the course of the US and world economy for years to come.