Posted at 11:35 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

The risks of increased interest rates as “one and done” for the Fed remains extremely high.

Sales Of New Homes Plunge By More Than 7 Percent
September 26, 2016

Sales of new homes retreated in August, one month after surging to the highest level in nearly nine years. Activity fell in all regions of the country except the West.

The Commerce Department says new home sales dropped 7.6 percent last month to a seasonally adjusted annual rate of 609,000 units. That followed a surge in sales in July, when they jumped 13.8 percent to a rate of 659,000, the fastest pace since October 2007.

Sales had been expected to retreat in August following the July surge.

More…

Posted at 10:21 AM (CST) by & filed under In The News.

Stockman was on fox business this [Saturday] morning

Sounded somewhat panicked

Says the whole market is held up by half a dozen robo machines

When asked what he recommended to investors

He said

Get out Monday

Jim Sinclair’s Commentary

Mad men with the world’s future in their hands.

No-Fly Zone Would ‘Require War With Syria And Russia’ – Top US General
September 22, 2016

Speaking to the US Senate, the Pentagon’s leaders blamed Russia for the Aleppo aid convoy attack, but admitted they “had no facts.” Only US coalition planes should be allowed over Syria, they said, though that would require war against both Syria and Russia.

Defense Secretary Ash Carter and General Joseph Dunford, Chairman of the Joint Chiefs of Staff, faced the Senate Armed Services Committee on Thursday to report on the ongoing military operations and “national security challenges” faced by the US. They also asked the senators for more reliable funding, saying the uncertainty was hurting the defense industry.

“Not only our people – our defense industry partners, too, need stability and longer-term plans to be as efficient and cutting-edge as we need them to be,” Carter told the senators.

More…

Dallas Police And Fire Pension In Crisis; Retirees Concerned
September 26, 2016

DALLAS — Still recovering from the July sniper attack that left five law enforcement officers dead, the Dallas Police Department is facing a new crisis as its pension fund approaches insolvency and scores of officers, including Chief David Brown, announce unexpected retirements.

The crisis comes as the Dallas Police Department negotiates with City Hall to raise pay and build its ranks, which union leaders say have been depleted by low pay and poor working conditions. There are currently 3,355 officers in a department that once had 3,600.

Problems with the Dallas Police and Fire Pension system have been simmering for years and were coming to a head when the July 7 sniper attack temporarily united the city. But, in recent weeks, the pension crisis has boiled up again because of fears about the system’s viability and pleas for calm from fund administrators.

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Posted at 12:31 PM (CST) by & filed under Jim's Mailbox.

Hi Jim,

Even the UN is now predicting that the next financial crisis is imminent.

In the UN’s Annual Report by the Conference on Trade and Development published yesterday (see attached), they stated:

“There remains a risk of deflationary spirals in which capital flight, currency devaluations and collapsing asset prices would stymie growth and shrink government revenues. As capital begins to flow out, there is now a real danger of entering a third phase of the financial crisis…”

Makes you wonder how many more warning sirens will have to go off before this supersonic jet explodes in mid-air.

Ry,

CIGA King

Savings Guarantee? U.N. Warns Next Financial Crisis Imminent
September 23, 2016

“There remains a risk of deflationary spirals in which capital flight, currency devaluations and collapsing asset prices would stymie growth and shrink government revenues. As capital begins to flow out, there is now a real danger of entering a third phase of the financial crisis …”

UN Conference on Trade and Development’s Annual Report (UNCTAD), September 22, 2016

This hard hitting critique in the UN Conference on Trade and Development’s Annual Report, released this week, is suggesting that the ‘third leg of the world’s intractable depression is yet to come.’

More…

Posted at 4:39 PM (CST) by & filed under General Editorial.

Our apologies, there will not be a Q+A session this weekend as Jim is a bit under the weather and weak in voice.  We had planned to have Sean from SGT report interview us both but is pushed off until next weekend.  See y’all next weekend!

Posted at 11:48 AM (CST) by & filed under In The News.

Unanswered Questions about Wells Fargo
September 21, 2016

Wells Fargo has admitted to creating 1.5 million unauthorized retail bank accounts and 565,000 unauthorized credit applications. Speaking as the former Assistant Secretary of Housing – FHA Commissioner, my questions are:

How many credit cards were issued to the phony account holders?

How many auto loans were originated for the phony holders?

How many mortgage loans were originated for the phony holders?

Moreover, if credit cards and loans were associated with these accounts:

Who provided related auto and housing insurance?

How many of the mortgage loans were insured by VA or FHA?

How many mortgage loans were securitized by Freddie Mac, Fannie Mae, and Ginnie Mae?

Who are the private investors who bought the related securities?

Are they being paid an above market return?

Are any of these securities being purchased by central banks? If so, which ones? Are phony account mortgages from Wells Fargo among the$1.763 trillion of mortgage-backed securities on the Fed’s balance sheet?

Where did the proceeds of all the mortgages and related securities go?

More…

Posted at 11:45 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

I’m not going to burden you, or myself, with fact checks as we all read the same daily missives from the Mainstream Media.

I’ve decided to alter, hard as it may be, my habitual focus on minute by minute attention to breaking news items and price changes regarding the domestic and global economies. My reluctance to step back and view the forest has done more harm to my thinking than I care to admit.

So let’s look at the forest, and forget about the trees:

-Excessive liquidity via trillions of dollars in QE has been futile in creating economic growth.

-QE is a recipe for eventual hyperinflation.

-Equity markets are in the process of rolling over. Look at ALMOST any stock and you’ll find a rounding top pattern.

-China/Russia have been buying and hoarding gold, hand over fist.

-China/Russia are promoting their own currencies in international trade, leading to the eventual demise of the U.S. Dollar.

-Derivative markets have exploded to over $1 quadrillion.

-Banks, pension funds, hedge funds, etc. have all been accumulating high risk assets in search of yield.

-Most Western nations have accrued massive amounts of debt, mathematically impossible to pay off.

-The November elections in the U.S., no matter who wins, will lead to massive infrastructure and defense spending (not to mention ever increasing entitlements).

-Negative interest rates are not only draining pensioners’ source of livelihood, but contributing to the demise of pension funds themselves.

-As a sidebar, negative interest rates are slowly creating an atmosphere of social discontent with the prospect of banning currency. Now people are forced to pay banks to keep their deposits, and pay governments to purchase their bonds. This can erupt into violent protest among the public, as keeping cash under the mattress (the best investment available to the common man at the moment) will no longer be an option.

-We are as the cusp of slowly losing our Constitutional rights. Our forefathers fight in 1776 to preserve our liberties will have been for naught.

-Criminal charges against the financial community, for fiscal improprieties and lack of adherence to their fiduciary responsibilities, are nowhere to be found. Simply look at the recent Well Fargo debacle where the executive responsible for the massive fraud Carrie Tolstedt) gets released, yet is accommodated with a $125 million parting bonus!

-We are at war with every part of the globe. If that’s not the beginning of WW3, I don’t know what is.

-We are fighting alternative religious sects (read Muslims), alternative nationalities (read Latinos), alternative skin colors (Blacks and Asians), and last but not least…..our Allies in trade and commerce throughout the world.

I find that all these points (and there are many more) to be an irreversible movement toward the bowels of Hell. Let the Fed raise rates or let them lower rates. It really doesn’t matter. There is no turning back.

Markets are no longer free, but manipulated and controlled to such an extent that all your economic education can be tossed out the window. It no longer applies.

On a positive note………………the Nasdaq hit a new all time high!

CIGA Wolfgang Rech

Posted at 1:09 PM (CST) by & filed under Bill Holter.

This story says “Horses communicate with humans”. Really? Did they think it was just a 1,200 pound animal without any thoughts? Probably a good idea to understand “what” your horse is saying to you because if he is pissed for any reason and you do not know it, very bad things can happen! Of course I had to read the article but have to call BS on it right out of the gate. If they really wanted to do what was best for the horse they would let them be horses. A horse blanket? Horses DO NOT need blankets, how did they survive before man? Horses grow a winter coat and unless some idiot puts a blanket on them (which will rub off the winter hair), the horse will be fine! My farrier is 75 years old and worked in North Dakota, Montana and Wyoming for many years, he told me he never saw a horse “freeze to death”. (He did however see one horse suffocate because of an ice storm that froze its nostrils shut). If you blanket a horse once or twice …you must do so for the rest of the winter because you have thinned out the coat. Yes I know, “my poor baby is cold and I want to keep him warm” …let the horse be a horse! Related, a general rule of thumb is to watch “how much” and how thick your horses early winter coat grows in …a very good indicator as to how cold your winter will be.

A short video of man and horse “communicating”.

https://www.youtube.com/watch?v=fU4HtjbOH54&feature=youtu.be