From Jim Sinclairs website today:

Dear Green Hornet,

The key to the transmission of latent money creation such as the payment to AIG in bailouts which moves into AIG from bailout schemes out the back door to winners on the toxic OTC derivatives is velocity of money. As velocity of money increases, the latent M3 becomes present time M3.

Normally it takes a recovery in business activity to stimulate the Velocity of Money, which is an engine of inflation price wise.

These are not normal times.

Never has any government dared to create in one year monetary inflation equal to the GDP of that country. This is going to be an accomplishment of the USA in this year.

Every hyper-inflation that has ever occurred has happened when Velocity of Money was stimulated by a loss of confidence in the currency unit in the midst of a period of horrid business activity.

This is what will bring hyperinflation

We have heard alot of discussion lately in regards to why the miners could possibly be doing so horribly, when history has shown us that mining stocks should be skyrocketing given the last 8 year bull run in precious metals.

Two words: Naked Shorting

Jim Sinclair has created a movement lately asking to enlist over 200,000 investors, and thousands of mining companies, to put a stop to the criminal activity of Naked Shorting that literally steals money from investors.  You can see more information on Jim Sinclairs initiative here.

One of the best detailed audio explanations of how Naked Shorting works, listen to this audio program.

Hopefully when this all starts coming to light, the brokers who have engaged in this criminal activity will be spending a long time in a cold cell with a large room-mate named Bubba who finds ex-stock brokers attractive.