Sanctions on Iran and gold

Jim Sinclair - US Launches Economic War, Gold Reacting

King World News,

26 March, 2012

Today legendary trader and investor Jim Sinclair told King World News that gold has taken a major step towards becoming the currency of choice when it comes to international trade. Sinclair also said the US has launched an economic war against key Asian countries and it is having an immediate impact on the gold market. Here is what Sinclair had to say about the situation: “Wall Street goes to war and the weapon is money. There was a day when we went to war and the weapon was an armada of ships. It was landing on Iwo Jima, mano y mano, it was bravery and honor. Today it’s dollars.”

“We go to war, challenging the other side to do the same because whatever you use as a weapon, the other side is going to tend to use as a weapon. The weapon that’s being used is the interbank transfer system, the way money is sent from bank to bank.

We’ve already seen that Iran has been basically shut out of the SWIFT system and the SWIFT system is what this is all about. The SWIFT system doesn’t take any money for the money that goes through it. The SWIFT system is like the old telephone company. What it does is charge for the use of its communication.

Believe me the SWIFT system works for the West. It’s located in Belgium and you would think the US had no power on it. It’s never discussed as being a US arm, but it is a US weapon.

But we’ve already taken Iran and put a big X on it....

“You’ve got to see now you’ve got this visual in front of you of a battlefield. You’ve got Wall Street firing by lighting off something that looks like a cruise missile, but it’s got SWIFT written on the side.

We tell India to cooperate or suffer the consequences. The statement was made, almost as it was at the beginning of the Iraq war, that if you’re not with us, you’re against us. If you’re not with us, you’re not in the SWIFT system. If your not with us, we’ll shut down your economy.

Now that hasn’t gone over too well with our friends, if we have any. Our friends have been saying, ‘This simply can’t be tolerated. You can’t shut down our economy.’ So we said, ‘Okay, we won’t shut down your economy, but we’ll do it selectively.’ India has said, ‘No way.’ China, ‘No way.’

What we’ve done is we’ve started barter dealing, around the world, in an enormous amount. China has been importing Iranian crude and other Asian countries are doing exactly the same thing. But in truth, over in Asia this hasn’t gone over so well.

You are starting to actually choose economic sides. You see the cruise missile coming over, with SWIFT written on the side, heading straight down into Iran. You see five or six more coming, one says China, one says India and the other three says selectively.

You are beginning to force barter transactions and degrade the system of currency exchange. You are saying to countries around the world, in today’s economic system, today’s world run by bankers and their associates, if we go to war, we’re going to war economically.

If we going to war economically, we have to have to be able to barter. There’s only one thing in the world you can barter with, that’s in a modest size. It can go by air transport and represent a huge amount of money to pay for oil, it’s called gold.

To worry about gold is madness. It’s listening to the mainstream media (propaganda) and not really paying attention to what’s out there. Putting gold into a position to barter, in huge amounts, is a phenomenal forward step for gold.”

This is an extremely powerful and timely interview with Sinclair. Because of the importance what has transpired, the KWN audio interview with Jim Sinclair is available now and you can listen to it by CLICKING HERE.