Posted at 5:17 PM (CST) by & filed under USAWatchdog.com.

By Greg Hunter’s USAWatchdog.com (Early Saturday Release)

(Programming note:  I am releasing this now (Saturday 12/3/16) because I think it is the most important interview of the year on USAWatchdog.com.)

Legendary gold and market expert Jim Sinclair says, “Markets do not exist anymore . . . and you can’t time what does not exist.” Sinclair contends a huge transition is underway, and the old system cannot be fixed. A new one is on the way, and the old one is going to end with a bang.  Sinclair explains, “Right now, they’re eating each other, and the eventuality is, getting back to the steam pot, there is going to be a day when there is only going to be one shark left, one very fat shark left, and what happens next?  That shark starves to death because it ate all the food.  So, the end of this is the explosion of that steam cooker which is called capitalism.”

Posted at 5:37 PM (CST) by & filed under In The News.

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Jim Sinclair’s Commentary

Have you ever noticed that more than 95% of the worlds dictators comes from the left?

Inside Fidel Castro’s Life Of Luxury And Ladies While Country Starved
November 27, 2016

With his shaggy beard and rumpled, olive-drab fatigues, Fidel Castro presented himself to the world as a modest man of the people.

At times, he claimed he made just 900 pesos ($43) a month and lived in a “fisherman’s hut” somewhere on the beach

But Castro’s public image was a carefully crafted myth, more fiction than fact.

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Jim Sinclair’s Commentary

Modi should go back to being a Tea Walla. If he screws with gold importation he will have punched his own ticket.

India’s Rural Economy Hit Hard As Informal Lending Breaks Down
November 27, 2016

Life was good for Mitharam Patil, a wealthy money lender from a small village in the Indian state of Maharashtra.

Small-time financiers like Patil would typically lend cash to farmers and traders every day, providing a vital source of funding for a rural economy largely shut out of the banking sector, albeit at interest rates of about 24 percent.

All that came crashing down on Nov. 8, when Prime Minister Narendra Modi banned 500 and 1,000 rupee ($7.30-$14.60) banknotes, which accounted for 86 percent of currency in circulation.
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Posted at 5:20 PM (CST) by & filed under General Editorial.

This degraded world has little chance of significant change with another Goldman Alumni as Secretary of the US Treasury as well an other 1% being in the US cabinet as Secretary of Commerce.

The greatest men and women that every walked the Earth did not have a penny to their name or in any self administrated charitable trust. What we have might be better than than the alternative, but most probably not by much. A president is usually the sum of his closest advisors.

Where I am concerned the case is closed.

Personally, I am extremely disappointed.

Machiavelli, or more formally Niccolò di Bernardo dei Machiavelli lives. He has often been called the founder of modern political science or the worst SOB that ever took birth.

We are back to the “Hope and Change” mock scenario.”

Posted at 4:42 PM (CST) by & filed under Jim's Mailbox.

Jim,

It is really that they are $&%#*scarred that yields are rising hence why they pummel gold. As a result of the upwards trending yields the dollar of course also strengthens.

They can’t have higher yields and higher gold prices because that would open the floodgates into gold something that will have to happen anyway!!! Because of the asymmetric markets.

When we break the 2.50% we will get to 3% in no time!!

Imagine how much the EM countries are getting hit by the stronger dollar and the translation losses that are being incurred on the foreign S&P500 income (50%). Lower future earnings and thus prices.

Basically one can only invest in volatility and we have such high volatility in all asset classes because everything is so unstable equities, bonds, metals, currencies!!! Rational investments in any asset class doesn’t hold ground!

GG

Posted at 12:25 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

More MSM Fake news revealed.

War on Cash – Happening Faster Than We Ever Imagined – Here Are Some Examples You May Have Missed
November 30, 2016

India is the most notable recent example– the embarrassing debacle a few weeks ago in which the government, overnight, “demonetized” its two largest denominations of cash, leaving an entire nation in chaos.

But there have been so many smaller examples.

In the US city of New Orleans, the local government decided earlier this month to stop accepting cash payments from drivers at the Office of Motor Vehicles.

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Gold Extends Losses Below $1200 As Dollar Soars
November 30, 2016

Gold futures prices dropped to $1,171 this morning as the dollar surged into the European closed and the OPEC deal sent oil prices spiking. The precious metal is now unchanged since October 2014, but as UBS notes is dramatically oversold at current levels.

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Gold is unchanged since Oct 2014…

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UBS notes that last week’s break below $1200 does not change our view on gold. The recent undershooting below $1240 and $1200 we continue to see as an extension of the summer correction (based on the overshooting in rates and therefore rising real rates), instead of starting a new major breakdown. With the break of the 2012 downtrend in US inflation expectations but expecting a pullback in yields into Q1, it should be just a question of time to see a new bounce/rally starting in gold/gold mines.

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Posted at 12:18 PM (CST) by & filed under USAWatchdog.com.

Dear MSM,

Your nose grew – your nose grew. Liar liar, pants on fire.

The Age news of the people takes birth with Greg Hunter.

Bravo Greg!

Jim

Fake News List Death Knell for MSM-Paul Craig Roberts
November 30, 2016

The latest is called “Fake News List Death Knell for MSM-Paul Craig Roberts.” Economic expert and journalist Dr. Paul Craig Roberts thinks the recent publication of the so-called ‘fake news” list recently published by the Washington Post signals a major turning point for all of the mainstream media (MSM). Dr. Roberts explains, “I think this is the death knell for the mainstream media. I think this list essentially kills the credibility of the mainstream media and certainly the Washington Post. It has demonstrated it is completely devoid of any integrity. I am a former Wall Street Journal editor, and if we had done something like that, Warren Phillips would have fired every one of us. We would have been told to get out. You can’t carry on this kind of assault on people. I think this is a sign of desperation.”

On why the markets haven’t crashed, Dr. Roberts, who was an Assistant Treasury Secretary in the Reagan Administration, says, “The markets are all rigged. So, when you try to look at the markets in traditional ways such as price/earnings ratios, earnings growth, or sales growth or any kinds of things like this, they don’t know anything because the Federal Reserve has probably the largest trading desk in the world. They can trade anything, in fact, everything, and they have no limits on their pocketbook…In order for the Fed to protect the dollar, the dollar’s exchange value from the massive outpouring of dollars that the Fed created to buy all the bonds, they had to stop the dollar from falling in relation to gold. So, they have to go in and sell massive amounts of gold shorts in the futures markets. This is how they knock the gold price down…Unless the world runs on the dollar or unless the rest of the world abandons the dollar, I can’t see anything that would bring down this house of cards. They can continue this because the Fed can create all the money it wants. There is no limit.”

On the oligarchs trying to control Donald Trump with the threat of crashing the economy, Dr. Roberts contends, “The easiest thing for the oligarchs to do would be to orchestrate an economic crash, and they can do this easily because it’s a house of cards held up by the Fed. If they come to the conclusion that they can’t control him and he is actually a threat to them, they’ll just crash the economy, and then they’ll go to Trump and say hey look, you are blamed for this and on the defensive. If you want to get out of this, you have to appoint us, and we’ll get you out of this. That’s the sort of power that the oligarchs have over Trump. I have said from the beginning that Trump has the sort of strong will you have to have to bring change from the top down.”

On holding physical gold and silver, Dr. Roberts, who holds a PhD in economics, says, “Anyone who has surplus funds should be holding gold and silver because the dollar should be reduced already to the level of toilet paper. The Federal Reserve’s balance sheet has exploded. It’s grown so much. So, you have this massive increase in supply of money, but not in goods and services. The reason we are not experiencing hyperinflation is not much of that money got into the economy. It went into financial assets and bid up stock prices, bond prices and real estate prices…If the world turns on the dollar, the Fed is not going to be able to sustain it. Gold and silver have always been money… If people don’t want the currency because it’s worthless, it’s nice to have something to engage in trade with until some new monetary system can be formed. I think it is very reckless to abuse the dollar the way it has been abused.”

Join Greg Hunter as he goes One-on-One with former Assistant Treasury Secretary Dr. Paul Craig Roberts, founder of PaulCraigRoberts.org. Here’s the link: http://usawatchdog.com/fake-news-list-death-knell-for-msm-paul-craig-roberts/

Greg

Posted at 7:54 PM (CST) by & filed under General Editorial.

My Dear Friends,

This article is extremely positive for the price gold and silver but you must take your time, reading it carefully therefore understanding it. GG, I and BH do and this must be studied so you will also see the new world we have fallen into. Dante would be proud

Since there is no precedent for economic conditions globally today few if any outside of GG and we understand how to converging circumstances are bullish for gold and very bullish for silver. Globalism may have bitten the dust but the impact of this experiment is going to be with us for a generation. The reset is coming but not by central bank decision. It is coming because we have exterminated all markets with techies running the show.

You must grasp the awful pickle that pensions and insurance companies are in to add to all the others back story dollar negatives there are from outrageous OTC counter party commitments to the size of all debt. Brevet is done This could be three strikes and the EU is out for all practical purposes.

10-Year US Treasury Yield Will Break Out Of 35-year Range By Yearend 2016! (Part 1)
November 26, 2016

Why Interest Rates Will Break Out: Illiquidity, NO Vote Italy And Increasing Risk

Gundlach believes that Trump’s policies can raise the bond yields to 6% in the next 4 to 5 years. I believe that the recent surge in interest rates worldwide, with global bonds posting the biggest two-week loss ($1.8trn) in 26 years (since 1990) as President-elect Donald Trump sent inflation expectations surging, will rise above 3% before the end of 2016. Why? Because investors, mainly the hedge funds, and not so much the life insurance and pension companies that often hold their bonds until maturity, must get wary that the 10y Treasury Yield might break the 2.5% (we have already reached the 2.40% level on Wednesday November 23) and subsequently the very important 3% – see below.

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Since 1981 when Volcker raised the Fed Funds Rate from 11.2% in 1979 to 20% in June of 1981, interest rates have been trending downward. Consequently, when the yield rises above the 3% level it breaks the declining range which has been intact for the last 35 years. Subsequently with the tremendous illiquidity in the market, caused by the Central Bankers and new regulations, we could very quickly see yields of 4%, 5%…and even 6%. The 35-year break out will not be gradual…as that is the nature of patterns breaking out of long-term trends.  

Do you think investors want to stay in the bond market with the Italian NO vote on December 4? This is almost a certainty with all its potential unwanted consequences of breaking up the EU and much higher Italian interest rates with as first culprit the Italian retail investors (bail-ins) and huge losses for the French banks on their Italian bond positions. International banks have lent Italian banks €550bn of which €250bn was lent by the French banks. This could force worldwide bond CDS (Credit Default Swaps) and interest rates much higher. Everybody will go for the gates because breakouts of long-term (35 year) ranges are very violent and extreme. Consequently, funds don’t want to incur even bigger losses before the end of the year and annihilate bonuses or what is left of them. On top of that we have the Fed meeting on December 13-14 with an almost 100% certainty that the Fed Funds Rate will be raised.

In my opinion the rising interest rates will not be a consequence of the anticipated rate of inflation (stemming from the low base effect of commodities), as is normally the case, but will be the result of the increasing risks (the status is changing everywhere) and poor market conditions such as illiquidity.

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10-Year US Treasury Yield Will Break Out Of 35-year Range By Yearend 2016! (Part 2)
November 27, 2016

Debt levels have increased by 47% from $150trn in 2008 to $220trn in 2016!!

Despite the low interest rates and the subsequent underfunding of the pension plans, global debt levels have increased significantly since 2008. Debt across the nonfinancial sectors of almost every economy remains close to record highs, meaning that the potential for negative wealth effects in the real economy is very much there. Whilst world GDP has increased by 16% from $63trn in 2008 to $73trn in 2015 according to figures of the World Bank the overall global debt has increased by 47% from $150trn in 2008 to $220trn+ in 2016. A threefold increase compared to the increase in GDP. The following chart shows how global debt has increased from 2000 to 2014.

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As we know loans or debt bring forward future income because future income needs to be used to repay the capital sum and the interest charges and thus future GDP forecast will be lower with ever increasing debt levels. This will mean that ultimately a huge capital destruction will take place because valuations will come crashing down following the reduced ability to consume which will lead to much lower price earnings ratios. It will be a self-feeding dynamic.  And this will result in the debouchment of the currencies leading to less and less global purchasing power! Don’t forget the currency is ultimately the benchmark of your (global) wealth. And therefore when currencies are debouched, as we witnessed with the Brexit and the subsequent flash crash in the UK, it is important to maintain purchasing power by buying physical gold and silver. Gold and silver are valued in all currencies and thus when one currency undergoes a devaluation gold and silver keep their value in other currencies unless that currency is the reserve currency, the US dollar. Just also look at India where the abolishment of the Rupee 500 ($7.5) and 1,000 ($15) notes, which are no longer legal tender, saw gold exceeding $2,000/oz. or 50,000 rupees per 10 grams of gold ($1=R68.5056). Another clear example of how the value of paper money that can be manipulated and declared worthless and the rise of the value of the ultimate currencies gold and silver that have value on their own. N’importe quai what politicians determine gold and silver will never lose their value. Ever wondered why so many Central Banks have a large part of their forex reserves in gold?

Anyway the following example will illustrate the diminishing returns of the incumbent US economy and the additional loans that are needed to create decreasing incremental value in GDP. According to the latest BEA (Bureau of Economic Analysis) revision, the nominal annualized Q1 GDP in the US was $18.23 trillion (according to the World Bank 2015 global GDP was $73trn), an increase of just $65 billion from the previous quarter or an annualized 0.7% rate; the question is how much credit had to be created to generate this growth. Well, according to the Z.1 (Fed, Financial Accounts of the United States – Z.1), total credit rose increased by $645 billion to a new record high $64.1 trillion. It means that in 1Q2016, $10 in new debt was needed to generate just $1 in new economic growth (see below)! Basically these figures show the inefficiency of the incumbent economic system with an infrastructure that desperately needs a complete overhaul, lower taxes and fewer regulations that prohibit the creation of new businesses. Though it is like spaghetti software whereby new software is added to existing software, which becomes a change on changes often typified as spaghetti software. One needs a “clean sheet” to really realize the efficiencies of a new beginning. Though this virtually impossible and history shows us that we first have to go through a period of “creative destruction” before we can fully realize the potential of our investments.

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