Posted at 7:20 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Where gold is concerned as it travels it path to the physical market, China and Russia will set the price.

China wants to set prices for the world’s commodities

China has put the world’s traditional financial centers on notice that it wants to develop its raw material markets as hubs for setting prices, seeking to marry the country’s commercial heft with a much greater say in determining how much commodities cost.

“We’re facing a chance of a lifetime to become a global pricing center for commodities,” Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at the Shanghai Futures Exchange’s annual conference in the city on Wednesday. “On the way to realize this goal, we’ll see very intense competition. We have the advantage of trading size and economic growth, but our legislation is still not sound and we lack enough talent.”

China is the world’s largest user of metals and energy, but its traders and companies rely on financial centers outside the country — typically London and New York — to set benchmark prices for most of the commodities they handle and consume. While raw materials trading in the nation remains largely off-limits to overseas investors — who also face currency restrictions — China has long pledged to open up. Fang vowed to press on with that process, while also seeing tough challenges from rival centers as it does so.

‘Starting Point’

“We plan to use crude oil, iron ore and natural rubber futures as the starting point in our efforts to open the domestic market to more foreign investors,” Fang told the audience. China shouldn’t underestimate “the determination of current pricing centers to maintain their status,” he said.



Jim Sinclair’s Commentary

The Fed and talking heads see a solid economic recovery demanding higher interest rates. What planet are they referring to?

Goodbye, empty nest: Millennials staying longer with parents
For millennials, living with parents is now most common arrangement for first time on record
By Christopher s. Rugaber

WASHINGTON (AP) — Many of America’s young adults appear to be in no hurry to move out of their old bedrooms.

For the first time on record, living with parents is now the most common arrangement for people ages 18 to 34, an analysis of census data by the Pew Research Center has found.

And the proportion of older millennials — those ages 25 to 34 — who are living at home has reached its highest point (19 percent) on record, Pew analysts said.

Nearly one-third of all millennials live with their parents, slightly more than the proportion who live with a spouse or partner. It’s the first time that living at home has outpaced living with a spouse for this age group since such record-keeping began in 1880.

The remaining young adults are living alone, with other relatives, in college dorms, as roommates or under other circumstances.

The sharp shift reflects a long-running decline in marriage, amplified by the economic upheavals of the Great Recession. The trend has been particularly evident among Americans who lack a college degree.

The pattern may be a contributing factor in the sluggish growth of the U.S. economy, which depends heavily on consumer spending. With more young people living with their parents rather than on their own, fewer people need to buy appliances, furniture or cable subscriptions. The recovery from the 2008-09 recession has been hobbled by historically low levels of home construction and home ownership.

Jennifer Post, 26, has been living with her parents in Villas, New Jersey, since dropping out of law school two years ago.

A law career wasn’t a good fit for her, Post decided, and now she’s seeking a job in digital media or marketing. There aren’t many opportunities in Villas, a beach town.

Even living at home, she said it’s been hard to save for a move to a bigger city after she was laid off from a baking job in March.



Bill Holter’s Commentary

…and people give me a hard time for using a brontosaurus age flip phone?

US military uses 8-inch floppy disks to coordinate nuclear force operations
Dan Mangan

Maybe they use the ’80s flick “War Games” as a training film, too.

The U.S. Defense Department is still using — after several decades — 8-inch floppy disks in a computer system that coordinates the operational functions of the nation’s nuclear forces, a jaw-dropping new report reveals.

The Defense Department’s 1970s-era IBM Series/1 Computer and long-outdated floppy disks handle functions related to intercontinental ballistic missiles, nuclear bombers and tanker support aircraft, according to the new Government Accountability Office report.

The department’s outdated “Strategic Automated Command and Control System” is one of the 10 oldest information technology investments or systems detailed in the sobering GAO report, which calls for a number of federal agencies “to address aging legacy systems.”

The report shows that creaky IT systems are being used to handle important functions related to the nation’s taxpayers, federal prisoners and military veterans, as well as to the U.S. nuclear umbrella.


Posted at 7:19 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

Have you ever wondered “who” would be blamed this time around? To this point, we speak about the “Lehman moment” when we look back at 2008. Of course it was not Lehman’s fault as they were forced, sacrificed or purposely destroyed, however you’d like to describe it. The way I saw it, the banking system needed an injection of capital, cheap capital and lots of it. The only way to get public funds was to “create” an emergency BEFORE the emergency became all engulfing, this is exactly what they did.

Now, some eight years and multiple $trillions later we are facing another “liquidity crunch”. It does not make sense that liquidity is scarce after all of the various QE’s but it is. The credit markets are very thin and trading even small pieces of credit has become hard work. The liquidity is just not there to support fully functional and liquid markets. The question now becomes, which financial donkey will have the tail of failure pinned on them?

I believe we have been getting the answer over just the last few weeks. My odds on guess is none other than Deutsche Bank, the largest or second largest derivatives monster on the planet. They have settled several cases recently including Libor, stock manipulation and for manipulating the London gold and silver fixes. I find it humorous as we were assured for so many years that gold and silver were THE ONLY things not being manipulated …how foolish of us to have thought such a thing?

As you know, DB is now offering 5% rates on 90 day money from it Brussels division. This makes no sense at all since they should be able to raise money in credit markets or from the ECB directly for nearly 0% or even negative …but for some reason they cannot. I have speculated Deutsche Bank has been “kicked out of the club” and their access to capital is being blocked. This may or may not be true but would make sense since they have agreed to turn state’s evidence and rat on other firms misdoings.

The latest, DB had their credit rating downgraded yesterday to two notches above “junk” Deutsche Bank’s credit rating was downgraded to 2 notches above junk. This will obviously make it even more difficult to raise capital and certainly increase their costs for capital. I find this very curious because from a systemic standpoint, we now have a wobbling counter partner in the derivatives market with well over $50 trillion! How comfortable can those be on the other side of derivatives with Deutsche Bank? Are they (were they ever?) really “hedged” or not? Without a doubt, it will be better not to find out but that is only wishful thinking.

Another aspect is from the judicial side, it now appears the courts are going to allow civil suits against the banks collectively based on criminal acts. The obvious here is that the banks collectively do not have enough capital to settle all the claims that are sure to come. What I am saying here is this, the old “pay to play” model which worked so well for so long may be breaking. It may be that the “paying” part may end up as more expensive than the profits made from “playing”.

All of which… which leads me to an important conclusion, the “banks”, collectively, need the system to come down and they need someone to blame. The “someone to blame” part is obvious, but why do they need the entire system to come down? Think about this, if the collapse is systemic then no one individually (except Deutsche Bank?) will have fingers pointed at them. The next logical point is this, how will a court be able to find for plaintiffs if the banks are ALL broke? Can you really squeeze blood from a stone? And penalizing the banks, no matter what they did would certainly not be viewed as something “for the common good”.

Let’s face it, the system is coming down one way or the other. If you cannot see this yet then all I can say is “you don’t know that you don’t know” and good luck to you. If the banks have reached the point of no return, doesn’t it make sense to “control” the crash? Or at least the narrative? Doesn’t it make sense to be able to point a finger at one particular bank as the reason instead of admitting it is ALL the banks and the system itself that was flawed. It will be very interesting to see how this exactly unfolds but my money is on Deutsche Bank as the Lehmanesque scapegoat!

Speaking of scapegoats, I am sure you saw the Senate vote last week that “sovereigns” (think Saudi Arabia) can be sued civilly. The finger has been pointed at the Saudis for being complicit in 911. The Saudi press returned volley yesterday by claiming the U.S. government was complicit themselves Saudi Press Just Accused US Govt of Blowing Up World Trade Centers as Pretext to Perpetual War. I think what is being missed here is both the Saudis and the U.S. are moving away from the official (impossible) story. Neither now claim that 19 Arabs did this on their own!

Do you see the importance of this? “Truth”, (uncovered in these small portions) is slowly coming out via “truth bombs”. The official stories whether they be financial, political or geopolitical are having small shreds of truth added in. As I have said all along, I believe we will see the mother of all truth bombs dropped by Mr. Putin with an absolutely “shocked” China looking in. Any sort of truth bomb will have U.S. (Western) financial markets as the prime target… Can Western markets even survive the real truth?

This has been a public article, if you enjoyed this and would like to see all of our work please click here to subscribe

Standing watch,

Bill Holter
Holter-Sinclair collaboration
Comments welcome

Posted at 7:11 PM (CST) by & filed under General Editorial.

Dear Readers,

We are NOT proposing a Class Action suit for individuals at this time. The reasons are stated in our original JSM posting. We are litigating for harm to business entities only. For this new type of legal action we are not litigating on behalf of individuals. Please refer to the original posting to understand the reasons for not pursuing a Class Action.

The success of litigation we propose for gold and silver producers will pave the way for individual Class Actions and other cases to prevail on behalf of individual investors. Those actions will follow, but the legal action by the producers needs to be addressed and resolved first to pave the way.

We seek contact from your companies and producers who have been injured. We do not seek contact from individuals who have been harmed by manipulation. We ask that you urge those in executive, decision making levels in your production companies contact us. In recovering damages through them, you will benefit as an investor in that entity.

Please urge the decision makers in your processing company to contact so we can arrange a conference with legal counsel. If you are not an executive decision maker of a processing entity, your email is not being sought for this litigation.

Thank you for your time and attention. Please contact and urge your company to contact us for inclusion in our litigation at no cost to them.

Best regards,
Jim Sinclair

Posted at 8:12 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

This is as major as was the invention of the OTC Derivative as a prolific instrument.

There is a major change in the direction of the wind from behind to directly in the face of the major banksters. If there is more to shift in legal interpretation contained herein then between failed OTC derivatives of all kinds and types plus huge civil awards aggravated by punitive damages, the headline below is absolutely correct. Banks will be dropping like flies.

World’s 16 biggest banks, including RBC, ordered to face Libor lawsuits in ruling court warns could ruin them
Bob Van Voris, Bloomberg News | May 23, 2016 5:41 PM ET

Sixteen of the world’s largest banks including JPMorgan Chase & Co. and Citigroup Inc. must face antitrust lawsuits accusing them of hurting investors who bought securities tied to Libor by rigging an interest-rate benchmark, a ruling that an appeals court warned could devastate them.

The appellate judges reversed a lower-court ruling on one issue — whether the investors had adequately claimed in their complaints to have been harmed — while sending the cases back for the judge to consider another issue: whether the plaintiffs are the proper parties to sue, in part because their claims, if successful, provide for triple damages that could overwhelm the banks.

“Requiring the banks to pay treble damages to every plaintiff who ended up on the wrong side of an independent Libordenominated derivative swap would, if appellants’ allegations were proved at trial, not only bankrupt 16 of the world’s most important financial institutions, but also vastly extend the potential scope of antitrust liability in myriad markets where derivative instruments have proliferated,” the U.S. Court of Appeals in New York said in the ruling.

Bank of America Corp., HSBC Holdings Plc, Barclays Plc, Credit Suisse Group AG, Deutsche Bank AG, Royal Bank of Canada and Royal Bank of Scotland Group Plc are also among the banks sued in Manhattan.



Jim Sinclair’s Commentary

If it is a computer based financial instrument it is sound only if it is hack proof. That is an oxymoron – there are no exceptions whatsoever.

SWIFT to unveil new security plan after hackers’ heists
By Huw Jones and Tom Bergin
Tue May 24, 2016 4:19pm IST

The SWIFT secure messaging service that underpins international banking said on Tuesday it plans to launch a new security programme as it fights to rebuild its reputation in the wake of the Bangladesh Bank heist.

The Society for Worldwide Interbank Financial Telecommunication (SWIFT)’s chief executive, Gottfried Leibbrandt, told a financial services conference in Brussels that SWIFT will launch a five-point plan later this week.

Banks send payment instructions to one another via SWIFT messages. In February, thieves hacked into the SWIFT system of the Bangladesh central bank, sending messages to the Federal Reserve Bank of New York allowing them to steal $81 million.

The attack follows a similar but little-noticed theft from Banco del Austro in Ecuador last year that netted thieves more than $12 million, and a previously undisclosed attack on Vietnam’s Tien Phong Bank that was not successful.

The crimes have dented the banking industry’s faith in SWIFT, a Belgium-based co-operative owned by its users.

The Bangladesh Bank hack was a “watershed event for the banking industry”, Leibbrandt said.

“There will be a before and an after Bangladesh. The Bangladesh fraud is not an isolated incident … this is a big deal. And it gets to the heart of banking.”

SWIFT wants banks to “drastically” improve information sharing, to toughen up security procedures around SWIFT and to increase their use of software that could spot fraudulent payments.



Jim Sinclair’s Commentary

Since the investor discussed has a habit of talking his position, what is said needs to be understood in those terms. Regardless, it is interesting.

Is the Next ‘Color Revolution’ Red or Golden?
13:04 24.05.2016(updated 13:05 24.05.2016)
Stacy Herbert, Max Keiser

On today’s episode of Double Down, hosts Max Keiser and Stacy Herbert are joined by market analyst, Stephen Kendal, to discuss billionaire investor George Soros’ double down on his bet against the S&P500 and long gold.

Click here to listen to the episode…

Nearly eight years since the last financial crash, billionaire hedge fund manager, George Soros, is betting on the same happening again — and he’s putting his money where his mouth is. In the last quarter, Soros has doubled his bet on an S&P500 crash and massively increased his stake in gold miners and gold. Double Down talks to market analyst, Stephen Kendal, who owns a quad server analysing thousands of data points on markets in the UK and US, about whether or not Soros, who is one of the best performing hedge fund managers in history, is making the right move yet again.



Jim Sinclair’s Commentary

We all have to be in violation of at least half a dozen.

20,642 New Regulations Added in the Obama Presidency
James Gattuso / Diane Katz
May 23, 2016

The tide of red tape that threatens to drown U.S. consumers and businesses surged yet again in 2015, according to a Heritage Foundation study we released on Monday.

More than $22 billion per year in new regulatory costs were imposed on Americans last year, pushing the total burden for the Obama years to exceed $100 billion annually.

That’s a dollar for every star in the galaxy, or one for every second in 32 years.

The consequences of this rampant rulemaking are widespread:

Restricted access to credit under the hundreds of rules unleashed by the Dodd–Frank financial regulation statute

Fewer health care choices and higher medical costs from the Affordable Care Act

Reduced Internet investment and innovation under the network neutrality rules dictated by the Federal Communications Commission

These are just a few of the 2,353 regulations of 2015—and there have been 20,642 since Obama took office in 2009.

The worst of last year’s wave—in terms of cost, at least—was the Environmental Protection Agency’s “Clean Power Plan.”



Bill Holter’s Commentary

An excellent visual of how much paper gold is traded versus how much real gold exists.

An Inside Look at the World’s Biggest Paper Gold Market

Gold's Secretive Price Discovery Market: Inside London's Vaults


Posted at 8:48 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

(Courtesy of

Bill Holter from JS Mineset is back to help us document the collapse for the fourth week of May, 2016. And as physical gold and silver moves East and intothe strong hands of more than a billion Chinese, and as foreign banks publicly settle global trade in the Yuan, Bill reminds us that “Every step forward by China, is one or two steps backward for the US and the Dollar, that’s what’s happening. For instance, if the Yuan is backed by gold, then why would someone accept the Dollar in lieu of the Yuan if the Dollar’s not backed by anything.” The build out of the infrastructure for the world to move completely away from the Dollar is almost complete. You have been warned.

Posted at 8:39 PM (CST) by & filed under In The News.

Bill Holter’s Commentary

The Saudis just upped the ante!

Saudi Press: U.S. Blew Up World Trade Center To Create ‘War On Terror’
by Deborah Danan22 May 2016

TEL AVIV – The Saudi press is still furious over the U.S. Senate’s unanimous vote approving a bill that allows the families of 9/11 victims to sue Saudi Arabia. This time, the London-based Al-Hayat daily has claimed that the U.S. planned the attacks on the World Trade Center in order to create a global war on terror.

The article, written by Saudi legal expert Katib al-Shammari and translated by MEMRI, claims that American threats to expose documents that prove Saudi involvement in the attacks are part of a long-standing U.S. policy that he calls “victory by means of archives.”

Al-Shammari claims that the U.S. chooses to keep some cards close to its chest in order to use them at a later date. One example is choosing not to invade Iraq in the 1990s and keeping its leader, Saddam Hussein, alive to use as “a bargaining chip” against other Gulf States. Only once Shi’ism threatened to sweep the region did America act to get rid of Hussein “since they no longer saw him as an ace up their sleeve.”

He claims that the 9/11 attacks were another such card, enabling the U.S. to blame whoever suited its needs at a particular time; first it blamed Al-Qaeda and the Taliban, then Saddam Hussein’s regime in Iraq, and now Saudi Arabia.

September 11 is one of winning cards in the American archives, because all the wise people in the world who are experts on American policy and who analyze the images and the videos [of 9/11] agree unanimously that what happened in the [Twin] Towers was a purely American action, planned and carried out within the U.S. Proof of this is the sequence of continuous explosions that dramatically ripped through both buildings. … Expert structural engineers demolished them with explosives, while the planes crashing [into them] only gave the green light for the detonation – they were not the reason for the collapse. But the U.S. still spreads blame in all directions.

The intention of the attacks, writes al-Shammari in his conspiracy article, was to create “an obscure enemy – terrorism – which became what American presidents blamed for all their mistakes” and that would provide justification for any “dirty operation” in other countries.



Bill Holter’s Commentary

This is VERY significant news! Deutsche Bank is apparently being kicked out of the club and thrown under the bus. In my opinion, the greatest collapse of all time may end up being pinned on them. Surely it could not be the fault of an American insolvency. Watch the ripple effect!

Moody’s Downgrades Deutsche Bank’s Debt Two Notches Above Junk
Submitted by Tyler Durden on 05/23/2016 17:49 -0400

While not quite on the level of last week’s Berenberg downgrade (to Sell) which warned that DB’s problems are now “insurmountable”, shortly after the close Moody’s surprised the market with a downgrade that may have substantial repercussions on the funding costs (and perhaps viability) of the largest German, and European, lender.

Shortly after the market close, the rating agency decided to pile some more pain on the misery that has befallen Germany’s largest lender (who just today admitted it had rigged stocks in addition to seeing yet another MBS probe unveiled against it), when it downgraded the bank’s credit ratings across the board as follows: Senior debt to Baa2, or just two notches above junk, Long term deposits to A3 and counterparty risk assessment to A3.

Moody’s also downgraded Deutsche Bank’s short-term ratings and short-term counterparty risk assessments were also downgraded to Prime-2 from Prime-1 and to Prime-2(cr) and Prime-1(cr).

Moody’s downgrades Deutsche Bank’s ratings (senior debt to Baa2, long term deposits to A3 and counterparty risk assessment to A3(cr)); outlook stable

The full release:

Moody’s Investors Service has today downgraded the ratings of Deutsche Bank AG and affiliates, including the bank’s long-term deposit rating, to A3 from A2, its senior unsecured debt rating to Baa2 from Baa1, its standalone baseline credit assessment (BCA) to ba1 from baa3, and its counterparty risk assessment to A3(cr) from A2(cr). Deutsche Bank’s short-term ratings and short-term counterparty risk assessments were also downgraded to Prime-2 from Prime-1 and to Prime-2(cr) and Prime-1(cr), respectively. Today’s rating action reflects the increased execution challenges Deutsche Bank faces in achieving its strategic plan.

Moody’s also downgraded the ratings of US–based Deutsche Bank Trust Corporation and its trust company affiliates. These trust companies’
long-term deposit ratings were downgraded to A2 from A1, their long-term issuer ratings were downgraded to Baa2 from Baa1, their standalone baseline credit assessment was downgraded to baa1 from a3; their long-term and short-term counterparty risk assessments were downgraded to A3(cr) from A2(cr) and to Prime-2(cr) and Prime-1(cr) respectively. The Prime-1 short-term deposit ratings of these trust companies were affirmed.



Jim Sinclair’s Commentary

Nothing is too big to be hidden in plain view in the new, new normal

A Harvard MBA Guy Is Out to Bring Down the Clintons
By Pam Martens and Russ Martens: May 23, 2016

Remember Harry Markopolos? That’s the tenacious financial expert that pounded on the door of the Securities and Exchange Commission (SEC) for years, providing it with detailed, written evidentiary support for the premise that Bernie Madoff, the respected former Chairman of the NASDAQ stock market, was running a massive Ponzi scheme. The SEC never confirmed the fraud before Madoff confessed as he ran out of money in December 2008 because it skipped the most basic of investigation techniques: it failed to verify if real stocks and bonds actually existed in Madoff’s client portfolios. They didn’t.

There’s a new Markopolos in town with that same brand of leave-no-stone-unturned tenacity and he has his sights set on the charity operations of Hillary and Bill Clinton, known as the Clinton Foundation and its myriad tentacles. Ortel’s actions come just as Hillary Clinton makes her final sprint for the Democratic nomination for President of the United States with Bill in tow as her economic czar. Like Markopolos, Charles Ortel does not mince words.

In a 9-page letter dated yesterday and posted to his blog, Ortel calls the Clintons’ charity the “largest unprosecuted charity fraud ever attempted,” adding for good measure that the Clinton Foundation is part of an “international charity fraud network whose entire cumulative scale (counting inflows and outflows) approaches and may even exceed $100 billion, measured from 1997 forward.” Ortel lists 40 potential areas of fraud or wrongdoing that he plans to expose over the coming days.

Like Markopolos, Ortel has an impressive resume. Ortel’s LinkedIn profile shows that he received his B.A. from Yale and an MBA from Harvard Business School.  He previously worked as a Managing Director at investment bank Dillon Read and later as a Managing Director at the financial research firm, Newport Value Partners. In more recent years, Ortel has been a contributor to a number of news outlets including the Washington Times and

The charges being made by Ortel are difficult to dismiss as a flight of fancy because mainstream media has tinkered around the edges of precisely what Ortel is now calling out in copious detail.

In a 2013 New York Times article, “Unease at Clinton Foundation Over Finances and Ambitions,” reporters Nicholas Confessore and Amy Chozick hint that Hillary Clinton’s political operatives are occupying offices at the Clinton Foundation headquarters, writing that they “will work on organizing Mrs. Clinton’s packed schedule of paid speeches to trade groups and awards ceremonies and assist in the research and writing of Mrs. Clinton’s memoir about her time at the State Department, to be published by Simon & Schuster next summer.”



Bill Holter’s Commentary

Play time with Principe!


Posted at 7:19 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Every step forward for the Yuan and a step backwards for the dollar.

Foreign banks to start China yuan trade settlement on Friday
Thu May 19, 2016 4:57am EDT

The first batch of foreign commercial banks has registered to directly trade yuan CNY=CFXS used for overseas trade settlement and can begin doing so on Friday, the foreign exchange market operator said.

Approved foreign commercial banks include CTBC Bank, Taipei Fubon Bank, Standard Chartered (STAN.L) and Citibank Hong Kong Ltd (C).

Foreign central banks have already been approved to trade directly in the country’s massive interbank forex market.



Jim Sinclair’s Commentary

There are contrails, chemtrails and Zika.

The first is transportation and the last two might be new transportation to a smaller world.


Posted at 10:49 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

At least it was a triple wide!

Mobile home in Malibu’s Paradise Cove sells for a record $5.3 million
Neal J. Leitereg

Seven-figure sales are an everyday occurrence in L.A.’s real estate hot bed, even in the mobile-home market. In Malibu, a mobile home recently changed hands for a record $5.3 million.

Found within the confines of the Paradise Cove Mobile Home Park, the triple-wide house was briefly listed for sale in March for $5.5 million before closing off-market. A year ago, the same property sold for $4 million, records show.

The sale is the most ever paid for a mobile home in Malibu, according to Pinnacle Estate Properties agent Elizabeth Seaman, who represented the buyer. Seaman declined to identify the new owner.