Posted at 12:13 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Please listen to this presentation because it encapsulates what Bill Holter and I have been saying for generations. The time is now. The people coming out of their MSM induced coma now will not be moved by market camouflage. They cannot care less as they have never owned a security or commodity. No politician can deny and convince others in that state of denial that the system is totally broken.

The sheeple are waking up, and the grounds of political, economic and social order is shaking. It cannot be stopped.

This man who is free of filters is joy to hear.

Nigel Farage tells MEPs: You’re not laughing now

He was jeered as he addressed the parliament during an emergency debate on the UK’s vote to leave the EU.

Mr Farage, who was jeered by some MEPs, said EU politicians were “in denial” about the eurozone and migration.

EC president Jean-Claude Juncker asked Mr Farage: “You were fighting for the exit, the British people voted in favour of the exit. Why are you here?”

Mr Juncker said the will of the British people must be respected, but said the Leave campaign had “fabricated reality” with some of its claims.

“Isn’t it funny,” Mr Farage said.

“When I came here 17 years ago and said I wanted to lead a campaign to get Britain to leave the Europeans Union, you all laughed at me.

“Well you’re not laughing now.”

He called for a “grown up and sensible attitude to how we negotiate a different relationship”, and declared: “Most of you have never done a proper job in your lives.”

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Alan Greenspan: Scotland Will Leave the United Kingdom
9:47 AM EDT June 27, 2016

Former Federal Reserve Chairman Alan Greenspan talks about Scotland’s desire to leave the United Kingdom following the Brexit referendum. He speaks with Bloomberg’s Tom Keene and Michael McKee on “Bloomberg ‹GO›.” (Source: Bloomberg) 

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Jim Sinclair’s Commentary

This is a process whereby an exchange moves from a futures exchange to a cash exchange. Be prepared for margin levels to rise to levels you never even considered.

CME Group Increasing Margins For Comex Gold Futures
Monday June 27, 2016 08:50

(Kitco News) – Margins will rise for Comex gold futures at the close of business on Monday, according to a notice from exchange operator CME Group.

In the case of the main Comex gold contract, the margin for new speculative positions will rise to $6,050 from $4,950. The maintenance margin for existing speculative, plus all hedge positions, will rise to $5,500 from $4,500.

Margins act as collateral on trades in the futures market. CME Group said the increase was “per the normal review of market volatility to ensure adequate collateral coverage.”

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Jim Sinclair’s Commentary

Well, sort of.

Greenspan Just Recommended Return to Gold Standard

9:50AM Update: Greenspan says the next unexpected U.S. economic move will be on the inflation side and “although we don’t have inflation now, you don’t have it until it’s there”.

Greenspan also called U.S. entitlements the “third rail” of American politics “you touch it and you die“. He said the “whole entire U.S. Presidential election should be about entitlements”, but all of the candidates will be afraid to discuss it.

________________________________________

Original Post:

Former Federal Reserve Chairman Alan Greenspan was just a guest on Bloomberg news and recommended that the U.S. return to a gold standard! He then said, “if people call me a gold bug, they should ask themselves why do central banks own gold now?!” 

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Jim Sinclair’s Commentary

Brexit will not go away no matter how hard MSM proclaims and Financial TV pleads.

The End Game Of Bubble Finance — Political Revolt
June 27, 2016

During Friday’s bloodbath I heard a CNBC anchor lady assuring her (scant) remaining audience that Brexit wasn’t a big sweat. That’s because it is purportedly a political crisis, not a financial one.

Presumably in the rarified canyons of Wall Street, politics doesn’t matter much. After all, when things get desperate enough, Washington caves and does “whatever it takes” to get the stock averages moving upward again.

Here’s a news flash. That’s all about to change.

The era of Bubble Finance was enabled by a political abdication nearly 50 years ago. But as Donald Trump rightly observed in the wake of Brexit, the voters are about to take back their governments, meaning that the financial elites of the world are in for a rude awakening.

To be sure, the apparent lesson of the first TARP vote when the bailout was rejected by the House in September 2008 was that politics didn’t matter so much.

Wall Street’s 800 point hissy fit was all it took to prostrate the politicians. Indeed, the presumptive free market party then domiciled in the White House quickly shed its Adam Smith ties and forced the congressional rubes from the red states to walk the plank a second time in order to reverse the decision.

There was a crucial predicate for this classic crony capitalist capture of the authority and purse of the state, however, that should not be overlooked. Namely, that in the mid-cycle period of the world’s 20-year experiment in central bank driven Bubble Finance the rubes had not yet come to fully appreciate that they were getting the short end of the stick.

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Jim Sinclair’s Commentary

Don’t expect your copy in the mail of a blog publishing the entire report on the internet.

Benghazi panel offers new details on attack in 800-page report
By Julian Hattem - 06/28/16 08:54 AM EDT

The House Select Committee on Benghazi is offering new details about the fatal 2012 attack in an 800-page report that criticizes the Obama administration’s response and offers new fire against Hillary Ciinton.

The report, after more than two years of work and $7 million in expense, does not fundamentally alter the public’s understanding of the attacks, which left four Americans dead and have simmered throughout President Obama’s time in office.

But the analysis includes new facts sure to be seized upon by the administration’s critics, and which are likely to serve as points of attack against Clinton during the general election.

Among the new revelations is the notion that Ambassador Chris Stevens, who along with three other Americans was killed in the attack, was in Benghazi with the aim of erecting a permanent diplomatic post, to replace the temporary one that came under fire.

Military orders also appeared to have gotten lost or misinterpreted on their way down the chain, the report claims. And the Libyan forces that eventually evacuated the surviving Americans from the CIA annex were in fact former loyalists of deposed strongman Moammar Gaddafi, and not militia groups with a previous relationship with the U.S.

In the Sept. 11, 2012, attacks, Stevens and State Department information management officer Sean Smith died when their diplomatic compound came under attack. Former Navy SEALs Glen Doherty and Tyrone died from mortar fire hours later, at a nearby CIA annex.

Scrutiny over the terror attack has dogged the Obama administration for the last four years, and in the process has become a byword for scandal on par with Watergate.

Critics suspect the Obama administration of having turned a blind eye to security, failing to come to the victims aid and then misleading the public in the aftermath.

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Jim Sinclair’s Commentary

Safety is an illusion by which the public happily surrenders their constitutional rights.

THE SECURITY FIRM THAT EMPLOYED THE ORLANDO SHOOTER PROTECTS AMERICAN NUCLEAR FACILITIES
By Eric Schlosser
JUNE 27, 2016

How could the world’s largest private security firm employ an armed guard who, for almost a decade,angrily and openly threatened to commit mass murder?COURTESY YOUTUBE

Omar Mateen, the killer responsible for the carnage at the Pulse night club in Orlando, two weeks ago, began training to become a corrections officer during the fall of 2006. He worked at a prison in Indiantown, Florida, while attending a correctional academy at a community college. His training didn’t last long. In April, 2007, the Florida Department of Corrections “administratively dismissed” Mateen, and he was kicked out of the academy. Mateen had felt slighted for being a Muslim, warned that a massacre like the one at Virginia Tech could occur at the academy, and talked about shooting his classmates at a school cookout. Administrators worried that he might show up on campus with a gun. Five months later, he was hired by G4S Secure Solutions USA, Inc., to work as an armed security guard. He obtained a license to carry a concealed weapon and, over the years, fulfilled various assignments for the company. At the St. Lucie County Courthouse, where G4S had a contract, one of Mateen’s tasks was screening visitors for guns.

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Posted at 11:21 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

This is exactly what you gentlemen have been espousing for quite some time now.

“So, with a NET position of 180,000 contracts short and with every contract representing 100 ounces of paper gold, the paper losses to these Banks for every $10 move in the gold price amounts to about $180,000,000. Multiplying that out…When gold was up nearly $100 early Friday, these Banks were on the losing side of a $1,800,000,000 move. Even for the likes of JPM et al, that’s a lot of fiat!

So, what did they do? Like any arrogant and addicted gambler, they doubled-down!”

The corrupt, illegal practices of the Comex in manipulating gold and silver, vis a vis the bullion banks and unlimited naked shorting to cap prices.

CIGA Wolfgang Rech

Onward Toward Bullion Bank Collapse
by Sprott Money
Jun 28, 2016 5:40 AM

The events of Friday not only speed the eventual collapse of the Bullion Bank Paper Derivative Pricing Scheme, they also highlight the fraud of this current system and shine light upon the utter desperation of these Banks to maintain it.

We’ve written about this countless times over the past six years. Here are just two recent examples:

In short, as a measure of controlling the paper prices of gold and silver, The Bullion Banks that operate on The Comex act as de facto market makers of the paper derivative, Comex futures contract. This gives them the nearly unlimited ability to simply conjure up new contracts from thin air whenever demand for these contracts exceeds available supply and, almost without exception, these Banks issue new contracts by taking the short side of the trade versus a Spec long buyer. Never do these Banks put up actual collateral of physical metal when issuing these paper derivative contracts. Instead, they simply take the risk that their “deep pockets” will allow them to outlast the Spec longs and, without the risk of having to make physical delivery, The Banks almost always win. Eventually, an event like the runup to the Brexit vote or all of the Fed Goon jawboning of May will spook The Specs into selling and this Spec selling is used by The Banks to buy back (cover) their ill-gotten naked shorts and lower total open interest back down. (If you’re confused by this, please click the second link listed above for a more detailed explanation of this process.)

How this influences price is simple. If the supply of the paper derivative futures contract was held constant on a daily basis, then price would have to rise or fall based upon simple supply/demand dynamics. When the amount of buyers exceeded sellers, price would have to rise to a point at which existing owners would be willing to sell. But this is NOT how the Comex futures market operates! Because the market-making Banks have the ability to create new contracts from whole cloth, they can instead flood the “market” with new supply whenever it’s necessary. This mutes potential upside moves by imparting fresh new supply for the Spec buyers to devour. Price DOES NOT have to rise to a new, natural equilibrium. Instead, price equilibrium is found where demand meets this new supply.

As a case in point, simply study the “market” impact on gold “prices” in the hours that followed the Brexit decision in the UK. As turmoil shook the global markets, gold shot higher and, at one point, was up nearly $100. However, within hours it had given back nearly half of those gains and then spent the remainder of the day in an unusual and very tight trading range while virtually every other “market” was rocked with volatility throughout the trading day. See below:

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Jim/Bill,

What you say Druck?

‘It’s actually what legendary hedge fund manager Stanley Druckenmiller, who historically has never been a really big gold investor, was talking about at the Sohn Conference in May. 

“My hint is what is the one asset you did not want to own when I started Duquesne in 1981? It’s traded for 5,000 years and for the first time has a positive carry in many parts of the globe as bankers are now experimenting with the absurd notion of negative interest rates. Some regard it was a metal. We regard it was a currency, and it remains our largest currency allocation,” Druckenmiller said.

Pal, a Goldman Sachs alum who also ran GLG’s macro fund, thinks owning both the dollar and gold is “very attractive.” He added that the downside is “very limited” given that traditionally when the dollar goes down, gold goes up. The upside is that they both go up.”

I always like “win/win” situations.

CIGA Wolfgang Rech

Gold is sending a dark sign that ‘almost everything has changed’ in the market
Investors need to be paying attention to the move in gold and the US dollar, Raoul Pal and Grant Williams, cofounders of Real Vision Television, both said.
By Julia La Roche
Tue, Jun 28, 2016, 9:16AM EDT

Gold and the US dollar are no longer behaving normally and it’s crucial that investors pay attention to this move, Raoul Pal and Grant Williams said during a discussion about the Brexit on Real Vision Television—a subscription financial news service they cofounded.

Gold is widely considered a hedge against the US dollar. When the dollar falls in value, gold prices often rise. However, this relationship has been breaking down.

Pal, a former macro fund manager and author of the research letter “The Global Macro Investor,” recently said that a dollar rally along with a gold rally is “a sure sign that almost everything has changed.”

Williams, the author the research letter “Things That Make You Go Hmmm,” agreed that it’s a “sign that there’s some move toward an end game of sorts.”

Following the stunning Brexit vote last week, investors simultaneously piled into gold and the US dollar, which are both considered safe-haven assets in the international financial markets. Both gold and the dollar have rallied.

For gold and the dollar to move in the same direction is not normal. It’s actually a sign of uncertainty or financial stress.

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Posted at 11:02 PM (CST) by & filed under In The News.

BREXIT BODY COUNT — Bill Holter

 

Bill Holter’s Commentary

If you lived in bubble and could get no other news whatsoever, THIS alone is a flashing red signpost pointing you toward gold and silver!

European Banks Crash To Worst 2-Day Loss Ever As Default Risk Soars
by Tyler Durden
Jun 27, 2016 1:19 PM

So much for George “Panic-Monger” Osborne’s calming statement this morning, European banks have collapsed this morning to close down between 20% and 30% since the Brexity vote. The last 2 days plunge in EU banks (down 23%) is the largest in history (double the size of Lehman) and pushes European bank equity market cap to its lowest (in USD terms) ever.

Worst.Drop.Ever…

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UK and European banks have collapsed…

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Posted at 2:30 AM (CST) by & filed under In The News.

Not Lovin’ It: McDonald’s To Close Over 500 Restaurants Worldwide To Stay Afloat
June 24th, 2016 | by Vandita

Even as the world’s biggest fast food chain moves its headquarters to a $250 million 608,000-square-foot complex in Chicago’s West Side in the spring of 2018, McDonald’s intends to close about 500 weaker-performing, company-operated locations worldwide in 2016 to bolster profits.

McDonald’s spokeswoman Becca Hary confirmed the announcement, released just days after it withdrew its branches from Middle Eastern and three Latin American countries, in an email to The Street:

“It’s important to note that while we will have a net reduction in restaurants [in the US], the impact is minimal in comparison to the 14,000 restaurants we operate across the US. We consistently review our restaurant portfolio and make strategic decisions to better position our business for the future.”

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Bill Holter’s Commentary

I completely missed this last week …maybe because our press did not report it? If true, more than just our standard of living is about to change.

Obama Administration and UN Announce Global Police Force to Fight ‘Extremism’ In U.S.
by Pamela Geller2 Oct 2015

Loretta Lynch announced at the United Nations that her office would be working in several American cities to form what she called the Strong Cities Network (SCN), a law enforcement initiative that would encompass the globe.

This amounts to nothing less than the overriding of American laws, up to and including the United States Constitution, in favor of United Nations laws that would henceforth be implemented in the United States itself – without any consultation of Congress at all.

The United Nations is a sharia-compliant world body, and Obama, speaking there just days ago, insisted that “violent extremism” is not exclusive to Islam (which it is). Obama is redefining jihad terror to include everyone but the jihadists. So will the UN, driven largely by the sharia-enforcing Organization of Islamic Cooperation (OIC) and the pro-Islamic post-American President Obama, use a “global police force” to crush counter-jihad forces?

After all, with Obama knowingly aiding al-Qaeda forces in Syria, how likely is it that he will use his “global police force” against actual Islamic jihadists? I suspect that instead, this global police force will be used to impose the blasphemy laws under the sharia (Islamic law), and to silence all criticism of Islam for the President who proclaimed that “the future must not belong to those who slander the prophet of Islam.”

What is a global police force doing in our cities? This is exactly the abdication of American sovereignty that I warned about in my book, The Post-American Presidency: The Obama Administration’s War on America. The Obama Department of Justice made it clear that it was exactly that when it distributed a press release last week announcing the “Launch of Strong Cities Network to Strengthen Community Resilience Against Violent Extremism.” In that press release, the DoJ complained that “while many cities and local authorities are developing innovative responses to address this challenge, no systematic efforts are in place to share experiences, pool resources and build a community of cities to inspire local action on a global scale.”

So if the local and municipal effort to counter the euphemistic and disingenuous “violent extremism” is inadequate and hasn’t developed “systematic efforts are in place to share experiences, pool resources and build a community of cities to inspire local action on a global scale,” the feds – and the UN – have to step in. Thus the groundwork is being laid for federal and international interference down to the local level. “The Strong Cities Network,” Lynch declared, “will serve as a vital tool to strengthen capacity-building and improve collaboration” – i.e., local dependence on federal and international authorities.

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Posted at 3:23 PM (CST) by & filed under In The News.

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Jim Sinclair’s Commentary

Mr. Williams shares with us.

- In the Context of Almost-Certain Heavy Central-Bank Interventions, Headline Market Volatility Largely Retrenched from Recent Hype that Brexit Would Lose
- Yen and Gold Were Strongest Versus the Dollar Since 2014
- Real Median Household Income Tumbled Anew in May
- Ex-Commercial Aircraft, Real Durable Goods Orders Are in a Trend for Second-Quarter Annualized Contraction of 1.8% (-1.8%)
- Aggregate Real Durable Goods Orders Continued in Smoothed, Low-Level, Stagnant Non-Recovery
- In the Context of Downside Corrections to Prior Months, May New-Home Sales Fell Sharply
- Continuing in Low-Level Stagnation, Non-Recovering New-Home Sales Remained Shy of Pre-Recession Peak by 60.3% (-60.3%)
- Despite Highest Existing-Home Sales Level Since 2007, Activity Remained Shy of Pre-Recession Peak by 23.9% (-23.9%), Continuing in a Smoothed Pattern of Stagnation
- Freight Index Showed Continuing Non-Recovery and Deepening New Recession

“No. 816: Durable Goods Orders, Home Sales, Freight Index, Household Income, Brexit ”
PDF: http://www.shadowstats.com

 

Jim Sinclair’s Commentary

David has a good handle on today.

Bravo Brexit!
June 24, 2016
David Stockman

At long last the tyranny of the global financial elite has been slammed good and hard. You can count on them to attempt another central bank based shock and awe campaign to halt and reverse the current sell-off, but it won’t be credible, sustainable or maybe even possible.

The central banks and their compatriots at the EC, IMF, White House/Treasury, OECD, G-7 and the rest of the Bubble Finance apparatus have well and truly over-played their hand. They have created a tissue of financial lies; an affront to the very laws of markets, sound money and capitalist prosperity.

So there will be payback, clawback and traumatic deflation of the bubbles. Plenty of it, as far as the eye can see.

On the immediate matter of Brexit, the British people have rejected the arrogant rule of the EU superstate and the tyranny of its unelected courts, commissions and bureaucratic overlords.

As Donald Trump was quick to point out, they have taken back their country. He urges that Americans do the same, and he might just persuade them.

But whether Trumpism captures the White House or not, it is virtually certain that Brexit is a contagious political disease. In response to today’s history-shaking event, determined campaigns for Frexit, Spexit, NExit, Grexit, Italxit, Hungexit and more centrifugal political emissions will next follow.

Smaller government—–at least in geography—–is being given another chance. And that’s a very good thing because more localized democracy everywhere and always is inimical to the rule of centralized financial elites.

The combustible material for more referendums and defections from the EU is certainly available in surging populist parties of both the left and the right throughout the continent. In fact, the next hammer blow to the Brussels/German dictatorship will surely happen in Spain’s general election do-over on Sunday (the December elections resulted in paralysis and no government).

When the polls close, the repudiation of the corrupt, hypocritical lapdog government of Prime Minister Rajoy will surely be complete. And properly so; he was just another statist in conservative garb who reformed nothing, left the Spanish economy buried in debt and gave false witness to the notion that the Brussels bureaucrats are the saviors of Europe.

So the common people of Europe may be doubly blessed this week with the exit of both David Cameron and Mariano Rajoy. Good riddance to both…

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Posted at 2:59 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

The sheep are awakening. The “Fort Elite” on the hill is under siege. I suspect the battle is going to be quite uncomfortable as real change comes. Brexit feels like the opening scene in a horror movie when everyone is anticipating something very scary, but not yet jumped out of their skin.

Brexit: Britain Votes with Trump, against Hillary, Obama
by JOEL B. POLLAK23 Jun 2016

British voters chose to “leave” the European Union on Thursday, defying the polls — and President Barack Obama, who had urged Britain to “remain” in the EU. Former Secretary of State Hillary Clinton had also urged Britain to stay in the EU. Only Donald Trump had backed the campaign to leave.

Republican strategists had panned Trump’s decision to travel to the UK in the midst of campaign turmoil, and in the wake of his blistering attack on Hillary Clinton earlier this week.

Now, however, it looks like a risk that paid off handsomely, in the currency of foreign policy credibility.

Obama’s advice may have pushed some voters to “leave.” In April, he warned British voters they would be at the “back of the queue” in trade with the U.S. if they left the EU. Some, like Andrew Roberts, took offense, writing in the Wall Street Journal:

Surely—surely—this is an issue on which the British people, and they alone, have the right to decide, without the intervention of President Obama, who adopted his haughtiest professorial manner when lecturing us to stay in the EU, before making the naked threat that we would be sent “to the back of the queue” (i.e., the back of the line) in any future trade deals if we had the temerity to vote to leave.

Was my country at the back of the line when Winston Churchill promised in 1941 that in the event of a Japanese attack on the U.S., a British declaration of war on Japan would be made within the hour?

Were we at the back of the line on 9/11, or did we step forward immediately and instinctively as the very first of your allies to contribute troops to join you in the expulsion of the Taliban, al Qaeda’s hosts, from power in Afghanistan?

Or in Iraq two years later, was it the French or the Germans or the Belgians who stood and fought and bled beside you? Whatever views you might have over the rights or wrongs of that war, no one can deny that Britain was in its accustomed place: at the front of the line, in the firing line. So it is not right for President Obama now to threaten to send us to the back of the line.

Hillary Clinton also backed a “remain” vote in April, with a senior policy adviser issuing a statement on her behalf:

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Jim Sinclair’s Commentary

This is a real concept that needs deep understanding. The world has changed. The sheeple are waking. I always thought that would be a step forward. I hope it is.

Five reasons Brexit could signal Trump winning the White House
Katty Kay Presenter, BBC World News
20 June 2016

The two most surprising political phenomena of this year have been the rise of Donald Trump and the success of the Leave Europe camp in Britain’s referendum on Brexit.

Few pundits saw either coming (and full disclosure, I include myself here, particularly on Trump) – but we should have and now would be a good chance to make up for past oversight by looking at how the two are linked.

This week, polls suggest, Britain may pull out of the European Union. Opinion polls currently have the 23 June referendum too close to call but the Brexit camp (those in favour of the UK splitting from the EU) has been inching ahead in recent weeks.

Later this year, Americans will decide whether to elect Donald Trump as the 45th US President, or Hillary Clinton.

Opinion polls also suggest this race is close, though with five months to go, those polls aren’t terribly instructive yet. Yet the result next week in Britain could give us some indication of how Americans will vote in November.

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Jim Sinclair’s Commentary

You have to love his delivery

‘EU is failing, EU is dying’: Nigel Farage speech following Brexit vote

The leader of the Independence Party (UKIP), Nigel Farage, has called for June 23 to go down in history as ‘Independence Day’, adding that it’s a “victory for ordinary, decent people, a victory against the big merchant banks.”

 

Jim Sinclair’s Commentary

I am convinced that people do not appreciate the significance of what has occurred. Yes market have reacted but what has not worked is still up and cranking. Everything has intervention from central banks and financial TV blared out no problem.

The Brexit contagion: How France, Italy and the Netherlands now want their referendum too
Matthew Holehouse, Brussels
23 June 2016 • 9:06am

Voters in France, Italy and the Netherlands are demanding their own votes on European Union membership and the euro, as the continent faces a “contagion” of referendums.

EU leaders fear a string of copycat polls could tear the organisation apart, as leaders come under pressure to emulate David Cameron and hold votes.

It came as German business leaders handed a considerable boost to the Leave campaign by saying it would be “very, very foolish” to deny the UK a free trade deal after Brexit.

Markus Kerber, the head of the BDI, which represents German industry, said that 1970s-style trade barriers would result in job losses in Germany.

“Imposing trade barriers, imposing protectionist measures between our two countries – or between the two political centres, the European Union on the one hand and the UK on the other – would be a very, very foolish thing in the 21st century.”

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Posted at 2:43 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

BREXIT! I have to admit, I did not believe it would happen. Rather, I did not believe it would be “allowed” to happen. In retrospect I believe the elites will look back and wish they had “Diebold” doing the vote count. This vote has so many various ramifications, it is hard to wrap your head around what it means but let’s take a look at what stands out most.

First and foremost, the “people stood up and spoke”. The vote to exit is without a doubt the largest protest vote the world has seen in many years. It is important to note that the Brexit vote is symptomatic of what is happening worldwide. I would also say it is very similar to the Trump phenomenon here in the States, people are angry. (I would also say the results are very encouraging to the Trump camp). Next, we must wonder “who” is next? Italy, Spain, France? Then, the next exit is the curtain for the EU experiment as a whole. It is only a matter of time before the next referendum (Italy in October), Brexit is only the beginning of an end where individual countries will prefer to steer their own destinies. “Globalization” has been dealt a huge blow!

It should be noted, the vote yesterday was only a referendum and does not guarantee the Parliament will petition to leave the Eurozone. It will be interesting to see how the Brits react if Parliament defies their wishes. All of this will take “time” to occur, but time is not something I believe is available and will most likely be cut short by the markets short circuiting.

As for markets, Brexit is being called a six sigma “Black Swan”. I had planned to write today that the entire system itself is the fabled Black Swan, I think we will soon see if this thought is correct. The world will wake up Monday morning to all sorts of margin calls. You must understand, the “carry trade” is held on very thin margin. No matter what market you are looking at, they all moved several percentage points versus 1% or much less used to carry positions. My point is this, many “counterparties” were outright blown up today and are dead entities unable to perform. Yes I am sure the Fed, ECB and BOJ will provide liquidity but that will not erase the losses, it will only postpone the pronouncement of death.

I believe it is VERY important to look at the “direction” that all markets have taken since the Brexit news. THIS is the direction of Mother Nature versus the direction of the elite controllers. You can call the moves “out of control” if you wish, the important thing to understand is the control of markets was temporarily lost and went in “bad” directions. These “bad” directions are your road map as to which direction various assets will move in the upcoming re set. I say the above with one caveat, capital flowed into U.S. Treasuries and German bunds, a reset will not be kind to the owners of debt from any issuer.

To finish, clearly today’s unanimous winner in ALL currencies was gold. As I wrote above, I believe the action today is your road map and a “tell” as to where we are headed. Financially, the system blew up behind the scenes and we will soon hear “who, where and how much”. We have gone nearly eight years with “unlimited paper” pushing, pulling and “pricing” markets in directions that supported the Alice in Wonderland world. The knee jerk reactions you saw today will only become more violent as today was only for starters. The only question remains, how long can they keep markets open? The carry trade unwind can only go so far without control being totally lost. Central banks will be mere straws in a hurricane of fear. A complete re set of “pricing” is not far off!

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Standing watch,

Bill Holter
Holter-Sinclair collaboration
Comments welcome bholter@hotmail.com