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.

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Posted at 12:02 AM (CST) by & filed under General Editorial.

Jim Sinclair’s Commentary

Behold, we live in the BS world.

The Inflation Targeting Scam And Why It Guarantees The Mother Of Financial Meltdowns
May 19, 2016

The estimable Martin Feldstein put the wood to the Fed in a recent op ed and in so doing hit the nail directly on the head. He essentially called foul ball on the whole inflation targeting regime and the magic 2.00% goalpost in part due to the measuring stick challenge.

A fundamental problem with an explicit inflation target is the difficulty of knowing if it has been hit.

That problem is plainly evident in the chart below. You could very easily make the argument that goods prices are beyond the Fed’s reach because they are set in the world markets and by the marginal cost of labor in China and the EM.

Therefore the more domestically driven CPI index for services such as housing, medical care, education, transportation, recreation etc. is the more relevant yard stick. Alas, if there is something magic about 2.00%, why then, mission accomplished!

On a five year basis, services inflation is up at 2.2% annually, and during the past year it has heated up to 3.2%.

Then again, if the Fed were not comprised of power-hungry apparatchiks looking for any excuse to intrude in the financial markets and dominate their hourly behavior, it might well recognize the merit of what we have termed “CPI Using Market Rent” (box).

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Jim Sinclair’s Commentary

It looks like pay to play might have just gotten much more expensive.

Banks Sued by Investor Over Agency-Bond Rigging Claims
By Tom Schoenberg, David McLaughlin, Chris Dolmetsch
May 18, 2016 — 1:44 PM MST
Updated on May 18, 2016 — 5:11 PM MST

How Wall Street Led LendingClub Into Crisis

Suit follows probes of SSA bond market in U.S. and U.K.

Traders are alleged to have colluded to fix bond prices

Bank of America Corp. and Deutsche Bank AG were among five banks sued over claims that traders conspired to manipulate trading agency bonds issued by government entities and institutions like the World Bank, harming investors who bought and sold the securities.

The suit by Boston Retirement System, a pension fund representing city workers, follows inquiries by U.S. and U.K. authorities into the market for the debt, known as supranational, sub-sovereign and agency bonds, or SSAs. The probes target alleged illegal collusion in international trading and follow billions of dollars in settlements over claims that banks rigged interest-rate benchmarks and currency markets.

“Defendants’ scheme was driven by greed and opportunity,” the fund said in the complaint filedWednesday in Manhattan federal court.

The lawsuit, which also names Credit Agricole SA, Credit Suisse Group AG and Nomura Holdings Inc. or their units as defendants, resembles claims made against banks over misconduct in currency markets. It accuses traders of colluding with one another to fix prices at which they bought and sold SSA bonds in the secondary market. It adds the threat of possible triple damages available under U.S. antitrust law for investors harmed by any illegal price-fixing.

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Jim Sinclair’s Commentary

Just another way for the 1% to screw you.

House Republicans Rig Hearing to Block Consumers from Going to Court
Public Citizen Is Fighting to Return Access to the Courts to American Consumers
By Pam Martens and Russ Martens: May 19, 2016 

The ink was barely dry on a proposal by the Consumer Financial Protection Bureau (CFPB) to restore the rights of banking customers to take their grievances into a court of law instead of a system of forced arbitration, when House Republicans threw together a hearing yesterday to scaremonger over make-believe evils of the proposal. The hearing was convened by the Republican-controlled Financial Institutions and Consumer Credit Subcommittee of the House Financial Services Committee and not-so-subtly titled “Examining the CFPB’s Proposed Rulemaking on Arbitration: Is it in the Public Interest and for the Protection of Consumers?”

The American Law Litigation Daily called the hearing “seriously lopsided.” ValueWalk called it “skewed.” We’re calling it brazenly rigged.

Paul Bland, Executive Director of the Nonprofit, Public Justice

In decades of watching Senate and House hearings, we have never seen a more unlevel playing field. Out of the four witnesses called to testify, three were hand-picked to parrot the position of the banks with one lonely witness on hand to counter their repeated misstatements of fact. Watching that one lone witness, Paul Bland, Executive Director of the nonprofit organization, Public Justice, attempt to provide balance to the proceeding was akin to watching bullies on the playground hurling dumb epithets at the straight-A kid in their class.

Most of the Republicans didn’t even bother to call on Bland or ask his opinion.  At one point, Republican Congressman Blaine Luetkemeyer of Missouri, a former banker himself, posed a slanted question to all four witnesses, then snapped at Bland, “You’re outvoted, it’s three to one.” When you rig a witness panel, naturally you can easily achieve three opinions against one. (On a side note, Luetkemeyer is attempting to do to endangered species what’s currently happening to banking customers – strip them of protections from predators.)

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Jim Sinclair’s Commentary

Minimum wage rises. Get more money. People lose their jobs. Price of goods and services rise. All employees put on part time. Politician get the vote of those hurt the most.

Wendy’s to Lay Off All Cashiers, Autonomize 6,000+ Locations to Fight Wage Increases
May 17th, 2016 

The fight for $15 per hour. The unintended consequences of raising the minimum wage are already beginning to take hold on several industries nationwide. In one of the most public moves combating wage increases to date, Wendy’s fast food chain has announced plans to automatize cashiers at over 6,000 facilities nationwide by the end of 2016.

Though Wendy’s made their decision official this past Thursday, Company CEO Emil Brolick hinted last August that the franchise might do just this. At the time Wendy’s was debating laying off employees in favor autonomization, or increasing the prices on their menu. As Emil Brolick stated “our franchisees will likely look at the opportunity to reduce overall staff, look at the opportunity to certainly reduce hours and any other cost reduction opportunities, not just price. You know there are some people out there who naively say that these wages can simply be passed along in terms of price increases. I don’t think that the average franchisee believes that.”

Wendy’s CFO Todd Penegor went on to add “We continue to look at initiatives and how we work to offset any impacts of future wage inflation through technology initiatives, whether that’s customer self-order kiosks, whether that’s automating more in the back of the house in the restaurant. You’ll see a lot more coming on that front later this year from us.”

Indeed they will. In an interview with Business Daily, Wendy’s representatives noted how the company’s 258 restaurants in California were struggling to keep up with the $10/hr wage demands, and similarly, the company’s 200+ franchises in New York simply cant keep up with the cost of wage inflation. Last month these two states voted to impose a minimum wage increase to 15$ statewide – going into effect within the next several years.

This legislation, along with the growing support for “the fight for $15$” nationwide, was the deciding factor. Wendy’s will now faze out cashiers at every location nationwide, in favor of self serve kiosks. The company also claims they will move forward with mobile phone ordering and mobile payment systems, which the company has been testing for the last several years.

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Bill Holter’s Commentary

Below are links to portable solar electricity. I have ordered these myself and make no endorsement other than they were recommended to me by a friend. I believe you should also buy a couple of good quality car batteries to store electricity. I can imagine nothing worse than spending a summer in Texas without even a floor fan running. While this will certainly not keep you accustomed to how you live now, it will not attract “flies” like a noisy generator will. Food for thought.

http://www.amazon.com/ECO-WORTHY-Portable-Folding-Monocrystalline-Controller/dp/B00XJ5QY0I?ie=UTF8&keywords=ECO-WORTHY%2012%20Volts%2080%20Watts%20Portable%20Folding&qid=1462678245&ref_=nav_signin&s=lawn-garden&sr=1-1

http://www.newegg.com/Product/Product.aspx?Item=9SIA71P2FJ7543&cm_re=inverter-_-9SIA71P2FJ7543-_-Product

Posted at 11:50 PM (CST) by & filed under Jim's Mailbox.

Jim,

Anyone with half a brain knows that if the US dollar is the major part of their reserves and the economy is sinking you had better get your reserves out of the dollar and into something more reliable that will hold its value. Like GOLD!!!!

CIGA Larry

U.S. debt dump deepens in 2016
by Patrick Gillespie
May 17, 2016: 8:35 AM ET

Central banks are dumping America’s debt at a record pace.

China, Russia and Brazil sold off U.S. Treasury bonds as they tried to soften the blow of the global economic slowdown. They each sold off at least $1 billion in U.S. Treasury bonds in March.

In all, central banks sold a net $17 billion. Sales had hit a record $57 billion in January.

So far this year, the global bank debt dump has reached $123 billion.

It’s the fastest pace for a U.S. debt selloff by global central banks since at least 1978, according to Treasury Department data published Monday afternoon.

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Jim/Bill,

My point exactly (regarding no left in the world, but price drops on Fed interest rate hike).

Apple rallies from 90 to 95 on such news.

CIGA Wolfgang Rech

Apple went from the hottest hedge fund stock to the coldest in just 3 months
Hedge funds unloaded about $7 billion worth of Apple stock in the first quarter.
By Julia La Roche

Hedge funds unloaded more than $7 billion worth of Apple (AAPL) stock during the first quarter, according to 13-F regulatory data compiled by FactSet.

The iPhone-maker’s stock had been a hedge fund darling for a long time. The stock had been the top purchase in the fourth quarter of 2015. According to Goldman Sachs, Apple ranked 7th among the stocks that “matter most” with 47 of 860 large hedge funds holding it as a top ten equity position.

“Apple, which was the top purchase by hedge funds last quarter, became the top sale by hedge funds in Q1,”FactSet’s Andrew Birstingl said in a new report. “The company saw $7.1 billion of its stock removed by hedge funds. Icahn Associates Holding was the main contributor to the selloff, as the activist firm exited its entire investment, valued at $4.8 billion.”

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Posted at 12:38 AM (CST) by & filed under General Editorial.

Dear Comrades in Golden Arms,

I was there and considered by some to have been the largest gold trader from 1968 to March 1980. I recall every day of it like it was yesterday.

NOW:

  1. I do not believe that gold has registered its all-time high by a long shot.
  2. I do not accept the recent decline from above $1900 as a gold bear market.
  3. I believe all accepted tools for market timing will fail in the long term super bull market.
  4. I believe the recent long decline to be but a reaction in the giant bull gold market.
  5. Into a new New Normal, all previous relationships between gold and anything will not apply.
  6. The basic motivator of new gold prices to come finds it basis in the physical gold market, not in the paper gold market.
  7. The 1% are not stupid or in the main would not have the positions that they have if market jerks.
  8. Knowing without any doubt what is about to occur, they have been for 8 years cleaning out the physical market.
  9. China and Russia are not gold speculators, but know exactly what is about to occur, having made it a policy to accumulate gold on a continuing basis.
  10. Like China and Russia, the right time to buy gold and therefore silver is when you have spare cash to do it.
  11. The demand for physical gold will eventually overcome the physical market, forcing deliveries to be taken on all the world’s paper markets and demanded in the forgotten large OTC derivatives of gold, written naked.
  12. The sign that this is taking place will be the ever increasing margin requirement of paper gold until it hits 100%.
  13. At that point the paper exchange is no longer a paper exchange but rather a physical exchange because physical gold supply will trade at a large premium to paper gold.
  14. This is the point in time when the question will be asked what is the value of a metals contract that cannot perform, the paper gold contracts.
  15. The answer to a non-performing contract is that its value is zero.
  16. Paper gold will trade down to the value of the paper it is written on, zero.
  17. At that time the value of physical gold will be whatever the major owners of physical wish it to be.
  18. The value of gold producing companies still functioning will be determined by their over the ground stored physical at full gold value and its underground gold at a modest discount to the stockpiled gold.
  19. Very few gold miners can grasp that concept. Investors do not have a clue.
  20. Talking heads seem to be getting a hint that something has changed in gold but have no clue as to why.
  21. This transmutation of what gold is, is happening right now, not some time in the future.
  22. The gold market is reflecting this in this minor recovery, making all fishing line market movements a great buy while gambleholic traders still can sell modestly into Rhino horn moves up.
  23. I do not think trading is correct because the final change will come overnight. You will go to sleep in one financial market and wake up the next day in the new New Normal financial world where gold, not paper, is King.
  24. The 1% makes this one of the first choices of assets to own on their decision tree.
  25. This explains the strange action of gold with the manipulators to the dirty work of their masters.
  26. As the paper price of gold is capped, the 1% are the major buyers on the physical metals, mostly direct from refiners and producers.
  27. This means that trillions of paper dollars need to be covered.
  28. The USDX may well be the most useless indicators of the value of the dollar.
  29. The value is not to be registered against other fiat currency, but rather in buying gold versus gold.
  30. As such, the USDX falls out of its traditional relationship to gold. This also reduces the SDR to a joke.
  31. Therefore the 1% is on the bull side of gold in the physical market while the Banksters have been on the short side of the gold price via paper.
  32. Time is running out for the short of paper gold to be a riskless trade with the Federal Reserve at its back. The intrinsic value of the silver and gold contract is zero and zero cannot fulfill the contract obligation of the paper gold contract. That is how the paper metals exchanges go boom. Therefore zero value for a delivery month on paper gold or silver is zero profit to the short of gold and silver paper contracts.
  33. All those long gold anything will have the wind at their back for a long and deserved change.

Questions are answered by Bill and I on the premium service where we have recorded numerous conversations on

what may well be the most important subjects you need to understand. Some of these conversations have over an hour of in-depth material.

Best Regards,
Jim

Posted at 8:36 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

…yet we continue to poke the Bear and the Dragon on a daily basis?

‘Wiped Out’: Air Force losing pilots and planes to cuts, scrounging for spare parts
By Jennifer Griffin, Lucas Tomlinson
Published May 14, 2016

EXCLUSIVE: It was just a few years ago, in March 2011, when a pair of U.S. Air Force B-1 bombers – during a harsh winter storm – took off from their base in South Dakota to fly across the world to launch the air campaign in Libya, only 16 hours after given the order.

Today, many in the Air Force are questioning whether a similar mission could still be accomplished, after years of budget cuts that have taken an undeniable toll. The U.S. Air Force is now short 4,000 airmen to maintain its fleet, short 700 pilots to fly them and short vital spare parts necessary to keep their jets in the air. The shortage is so dire that some have even been forced to scrounge for parts in a remote desert scrapheap known as “The Boneyard.”  

“It’s not only the personnel that are tired, it’s the aircraft that are tired as well,” Master Sgt. Bruce Pfrommer, who has over two decades of experience in the Air Force working on B-1 bombers, told Fox News.

Fox News visited two U.S. Air Force bases – including South Dakota’s Ellsworth Air Force Base located 35 miles from Mount Rushmore, where Pfrommer is stationed – to see the resource problems first-hand, following an investigation into the state of U.S. Marine Corps aviation last month.  

Many of the Airmen reported feeing “burnt out” and “exhausted” due to the current pace of operations, and limited resources to support them. During the visit to Ellsworth earlier this week, Fox News was told only about half of the 28th Bomb Wing’s fleet of bombers can fly. 

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Posted at 10:47 AM (CST) by & filed under General Editorial.

Dear CIGAs,

In our system, a person is considered innocent until proven guilty.

Here is some information of alleged acts dating back to 2010 to a situation many of you directly experienced and a few even repeated as presented to you in chat rooms and on public websites. My company and I have been hounded by internet trolls directly based on alleged material produced by these alleged acts.

https://www.sec.gov/litigation/admin/2016/34-77466.pdf

ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND- DESIST PROCEEDINGS PURSUANT TO SECTION 21C OF THE SECURITIES EXCHANGE ACT OF 1934, SECTIONS 203(f) AND 203(k) OF THE INVESTMENT ADVISERS ACT OF 1940, AND SECTION 9(b) OF THE INVESTMENT COMPANY ACT OF 1940 

UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934 Release No. 77466 / March 29, 2016
INVESTMENT ADVISERS ACT OF 1940 Release No. 4359 / March 29, 2016
INVESTMENT COMPANY ACT OF 1940 Release No. 32059 / March 29, 2016

ADMINISTRATIVE PROCEEDING File No. 3-17184

In the Matter of CHRISTOPHER M. GIBSON, Respondent.

I.

The Securities and Exchange Commission (“Commission”) deems it appropriate and in the public interest that public administrative and cease-and-desist proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 (“Exchange Act”), Sections 203(f) and 203(k) of the Investment Advisers Act of 1940 (“Advisers Act”), and Section 9(b) of the Investment Company Act of 1940 (“Investment Company Act”) against Christopher M. Gibson (“Respondent” or “Gibson”).

By the Commission.

Page #11

Brent J. Fields Secretary