From Jim Sinclair's website:


Here is someone that understands intuitively that when paper currency fails, the nationality of that currency increases their transactions in a flight to defend themselves. This can be seen recently in the runs on grocery stores in Iceland. That explodes the velocity of money upwards and delivers hyperinflation right in the middle of a recession and/or depression. It is happening right now, just look far North.

See the closing statement in my Formula that was first presented in its entirety in 2006. It addresses this predictable piece of nonsense that you cannot have hyperinflation in a full-fledged depression. This is total balderdash!

Global systemic crisis Alert - Summer 2009: The US government defaults on its debt
- Public announcement GEAB N28 (October 16, 2008) -

In this 28th edition of the GEAB, LEAP/E2020 has decided to launch a new global systemic crisis alert. Indeed our researchers anticipate that, before next summer 2009, the US government will default and be prevented to pay back its creditors (holders of US Treasury Bonds, of Fannie Mae and Freddy Mac shares, etc.). Of course such a bankruptcy will provoke some very negative outcome for all USD-denominated asset holders. According to our team, the period that will then begin should be conducive to the setting up of a � new Dollar � to remedy the problem of default and of induced massive capital drain from the US. The process will result from the following five factors studied in detail further in this GEAB:

    * The recent upward trend of the US Dollar is a direct and temporary consequence of the collapse of stock markets
    * Thanks to its recent � political baptism �, the Euro becomes a credible � safe haven � value and therefore provides a � crisis � alternative to the US dollar
    * The US public debt is now swelling uncontrollably
    * The ongoing collapse of US real economy prevents from finding an alternative solution to the country's defaulting
    * � Strong inflation or hyper-inflation in the US in 2009? �, that is the only question.

Studying the case of Iceland can give an idea of the upcoming stages of the crisis. That is what our team has been doing ever since the beginning of 2006. This country indeed provides a good illustration of what the US and the UK should be expecting. It can be considered � and that is what most Icelandic people do today � that the collapse of Iceland's financial system came from the fact that it was disproportionate to the size of the country's economy.