- Sinclair – Something Has Western Central Banks Terrified!
Today Jim Sinclair warned King World News that something clearly has Western central banks terrified right now. 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.
Eric King: “Jim, Bloomberg had a story headlining on their site over the weekend claiming that depositors may lose as much as 60% on deposits in Cyprus.”
Sinclair: “This is all because of the one quadrillion dollars in derivatives that are in the financial system. Six years ago the Bank for International Settlements (BIS) at that time reported that the amount of derivatives already outstanding exceeded one quadrillion dollars. This number is unimaginable to most human beings.
But that is the actual number (over one quadrillion dollars). They never should have released that number because it created a bit of panic. Central planners immediately changed the accounting method for derivatives and this appeared to bring the total amount down to under $700 trillion. So through the use of an accounting gimmick the total was reduced, but it hasn’t changed the frightening reality of what the world is facing….
There’s absolutely no question that when it’s confirmed that the depositors’ loss of money is not a tax, not a new way of making things whole, but in fact the actual disaster that the global banking system is currently in, you will have a move toward physical gold greater than anyone on this planet now believes is possible. We will also witness the beginning of a level of fear and panic not seen in this world since 1929.”