Global Stock Sell-Off!!!

Greg Hunter’s 

Today’s 500 plus point sell-off is pretty self-explanatory against a world-wide rout in stocks.  The world is deeply in debt, and there is no quick fix.  Europe and America are slowing down and taking the rest of the world with them.  Italy is also having major trouble handling its debt, right along with the other PIIGS (Portugal, Italy, Ireland, Greece and Spain).   Italy is the 8th largest economy in the world.  You thought Greece was a problem?  Wait until Italy cries bailout or default.  Spain surely cannot be far behind Italy; its debt problems are immense as well.   I wonder how long it will take before France and England are added to the PIIGS list.

Back on the other side of the pond, America is spending money like there is no tomorrow.  Congress just voted to borrow another $2.4 trillion.  That total will be used up in a little more than a year, and then there will be another debt ceiling fight or the U.S. will risk another default.  U.S. debt will hit $16.7 trillion before government spending is even slowed down, let alone cut.   This is what an oncoming systemic failure looks like, and people are scared.  They should be scared.  Today, the big guys pulled the trigger on the sell-off.  They got out of the way of the falling knife.  It’s funny how Wall Street tells Main Street to “buy and hold” while it harvests money on the short side.  I think the next wave of selling will come from the retail investor.  I wish them luck getting their money out of the brokerage.

Financial reporters are already saying the market is “oversold,” which, in my mind, says hold on and get ready to buy more.  The case for QE3 (the third round of money printing from the Federal Reserve) is going to be called for by everyone to “save the market.”  After all, Fed money printing is what caused the run up since the 2009 low.  Maybe it will work again before the system crashes and the dollar vaporizes in a hyperinflationary cloud.  I don’t know why stock investors and bond investors think they should never take a loss.  Every market player should be forced to suffer the consequences of poor risk management.  I guess we do not have capitalism anymore, just a kleptocracy.

Gold is down a paltry 1% and stands at $1,650 and change as I write this post.  Already, some of the talking heads are saying the gold trade is done.  Do not believe them for a minute.   That doesn’t mean there will not be severe corrections and sell-offs, but the trend is going up right along with the borrowing, money printing and continuing banker bailouts.  Renowned gold expert Jim Sinclair predicted years ago that gold would hit $1,650 an ounce in 2011—mission accomplished.  Where’s gold heading?  Here’s what I wrote in a post called “Print More Money” just a few months ago.  I wrote, “Sinclair expects gold to trade much higher this year and predicts after 2015, it will be priced at more than $12,500 an ounce.  You should not take Sinclair’s predictions lightly.  In 2002, he predicted gold (priced at around $350 an ounce) would trade at $1,650 an ounce by January 2011.  Today, it is well over $1,500.  In 1974, (the average price that year was $159.00 an ounce) Sinclair predicted gold would top out at $900 per ounce in 1980–it hit $887.50.  Sinclair says, “If QE is even slowed down, the net result would be a public loss of control on the part of what is seen as the U.S. economic management.” So, he expects gold will rise because the powers that be will print more money.”  (Click here to read the complete post.)   

Sinclair is not amateur.  He is a pro and has a track record to prove it.  He started a website several years ago ( ) to warn people of the coming calamity.  While I was at CNN, I interviewed him about what measures people should take to protect themselves.  He was right then and still right today.  If you watch the video from April of 2008, listen to the screams from my fellow CNN colleagues when I say Mr. Sinclair is predicting gold will hit “$1,650 in the next couple of years.”  It sounded outrageous to them, but, of course, we now know it was right on target.  I’m betting Sinclair will hit the bull’s-eye again at $12,500 per troy ounce.  That April 2008 video is below for your viewing pleasure.  Enjoy!

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  1. Davis

    Well now that the debt ceiling debate is over and the Treasury burned through about 60% of the $400 Billion in new boworrowing authority in a single day, it seemed the markets decided to get bact to “the previously scheduled program.” While the various partisan pundits busied themselves blaming their respective opposition for todays meltdown on the DJIA,they tend to ignore the fact as bad as it was on Wall Street the situation in the Euro Zone was far, far worse. Not only were all the various borses off nearly as much as the Dow, the soverign bond market virtually shut down. The sell off in Italian bank stocks was so diasterious trading in the largest banks was suspended. No matter how high they push up the yeild on PIIGS bonds there are no buyers to be found. So it looks like ECB will be forced to step in and buy, i.e. print more and more Euros.

    With the US markets already skitish after and extended sell off the panic on the trading floors must have been palpable. With about 45 mins. to go till closing those investors that had been hanging on day hoping for even a small reversal threw in the towel and the market fell another 150 points.

    I can’t imagine there are many stock brokers or hedge fund managers that are getting much sleep tonight. Far as I’m concerned, serves them right. All that pumping up prices on low trade volumes just came back and bit them on the backsides. It’s not like there haven’t been those of us warning this would happen.

  2. MasterLuke

    Come on greg, you know the best risk management for large hedge funds is to completely control the game so they never loss. It reminds me of that experimental mouse who kep hitting that button to get a little bit of cocaine till they OD. Dont tell the mouse but it felt great going up .. up .. up. The current American Economic Governance has no rational. It is marginally progessing to the state of a dead mouse. This is the equivalent of giving your professors bribes in college to get Straight As. Everyone is playing the same game, the guys with the money keep their money because they cheat. The people without money are slaves because of [Debt}. The system dies [Mouse] because it is the definition of greed and a abomination of what America was founded for.

    Remember America was founded on
    “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.”

    Not Slavery, Debt, and the pursuit of establishment of a blindless eleet who envision illusion, smoke & mirrors, and false words for those who have awoken.

    The downfall was a global phenomenon persuaded and perverted by the spoils of war and illegality.

    • Greg

      You are correct Master Luke!!!

  3. MasterLuke

    And it is illusion that the U.S. markets are a voice of the people. Its a voice of robotic trading designed to react to “news”. Thank you google and technology.

  4. Jerry Frey

    The recent debt ceiling circus maximus was a sideshow to the real main issue: the impeeative for a balanced budget. For years I’ve told my friends we’re screwed. Since te reagan adminitration, I’ve known this of the parallels between our decline and the Fall of the Roman Empire. For example, there was an imbalance in trade between the Western and Eastern halves of the empire and high taxation. Consider: the government lost control of its borders — Goths, Franks, Suevi, Alans — and society experienced moral decay.

    Graphics, like actions, can speak louder than words — here they are:

    • Greg

      Great stuff man! Thank you for the comment and for the link to your site.

  5. Jan

    The President is out selling the Good Ship Hope and doesn’t realize it was torpedoed today. This is a vote of no confidence.

    • Jack Salkovics

      Greg, thank you for bringing long deserved recognition to Jim Sinclair….maybe the only man in recent history who has been
      so good at gold and financial market predictions and an honorable and altruistic man. One who did not profit from the advice he gave us. He is abeacon in an otherwise corrupt world.

  6. Johan

    Thanks Greg!

    Best regards

  7. Roger H.

    Here is the Eleventh Commandment. You all will have to translate from the Latin. So Number Eleven is, “ARGENTUM ET AURUM COMPARENDA SUNT!”

    • Greg

      I think this says “silver and gold must be bought” Am I correct?

  8. Bob

    “I wish them luck getting their money out of the brokerage.” You are so right, Mr. Hunter. With all the chicanery that’s gone on, not being allowed access to one’s cash could be the icing on the cake, which has already been hollowed out by culprits with friends in high places.

  9. Amman

    Watching Ali, Greg and “Miss Gorgeous” was great. 🙂

    Anyway, like I said before – the US is not going anywhere and the US dollar is not going anywhere.

    America’s friends overseas will stand by America when it is time to pick up the pieces and Time to re-make America “Number 1” again.

    In the words of Gerald Celente, Welcome to the New American Renaissance!

  10. HA65MPH


  11. PmEdwards

    To fully understand Mr. Sinclair’s gold trading model please Google:
    There is no question that Mr. Sinclair understands the role of gold. With the Eurozone collectively holding 10,792 tons of gold and the US holding 8,133 tons on the books as sovereign assets it is a certainty that gold will be revalued. By Sinclair’s estimation the revaluation will occure @ 2015.
    To asume that Sinclair is wrong then one only need read Approximaty’s analysis of how he called the top in 1980.
    Balance Of Payments (BOP) that’s what gold backs. It’s the last bullet left in the gun. Fiat money has no where to go but gold ..Greenspan.
    Is 12,500 and ounce gold crazy? No. Who in 1980 when the Dow was trading at about 1000 could have even foreseen the Dow of today over 12,000. It’s all relative.

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