How does he know?
“How does anyone know an answer to a question? By being told. By having sources,” Sinclair revealed to King World News, Friday. “I’m half a century in the business. I’ve constantly kept up my contacts in a very unique and focused way. Quantitative easing was made clear to me, prior to Bernanke’s speech to the Washington group, prior to quantitative easing.”
Nearly three years later, there’s been no chink in that assessment, as evidenced by the Fed’s subsequent QE2 program, bogus currency swaps schemes as well as the most recent backdoor bailout of Europe through the Troika earlier this year.
“The next step in the formula is the fatigue of Asia in supporting bad Western monetary habits and QE to infinity to protect the long term 28 year up-trend line in the 30 year U.S. Treasury bond market,” he said in a Jul. 2, 2009 post.
A look at a 20-year chart of the 30-year Treasury reveals the trend line Sinclair had spoken of. Investors seeking clues to the dollars next major move could find in the chart of the 30-year bond.
Both the MACD and Slow STO indicate intermediate-term technical topping in the 30-year bond, and the trend line has held ever since the Jul. 2009 post.
As far as the outlook for the gold market, Sinclair is as bullish on gold as he’s as sure of more QE from the Fed.