Posted at 5:36 PM (CST) by & filed under In The News.

Dear CIGAs,

Today may have won the Republican candidate’s war for Donald Trump when he said, “I told you so – China did it” commenting on the loss of 1600 points on the Dow in three days.

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Jim Sinclair’s Commentary

As of today the door has slammed shut regarding both the belief that the Fed has omnipotent power to back up the equity bull market and the Plunge Protection Team can protect the equity or any other market no matter how awful the selling is.

Soon, before September ends, the door opens up to silver and gold as the last men standing.

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Jim Sinclair’s Commentary

The American public reacts to market movement by yawning at what will be his first shearing.

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Jim Sinclair’s Commentary

The newest spin by the Money Bunnies of Financial TV.

This morning opening down $1100 was not a bust or break in the stock market. It was a RECALIBRATION long overdue.

 

Jim Sinclair’s Commentary

Attention Federal Reserve:

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Deutsche Bank Sums It Up “The Fragility Of This Artificially Manipulated Financial System Was Finally Exposed”
Tyler Durden on 08/24/2015 09:05 -0400

Today’s dose of vile tinfoil hattery magick comes straight from the bank with the cool $55 trillion or so in derivatives, Deutsche Bank:

The fragility of this artificially manipulated financial system was exposed over the last couple of days of last week. It all ended with the S&P 500 falling -3.19% on Friday – its worst day since November 9th 2011.

* * *

We’ve long felt that the only thing preventing another financial crisis has been extraordinary central bank liquidity and general interventions from the global authorities which we still expect to continue for a long while yet. So when policy changes, risks arise. The genesis of this recent sell-off has been the threat of the Fed raising rates next month, but China’s confrontational move two weeks ago and the subsequent knock-on through EM have accelerated us towards something more serious. We always thought something would get in the way of the Fed raising rates in September and we’re perhaps seeing this now. With 24 days to go until we find out, the probability of a hike has gone down to 34% from a 54% recent peak on August 9th. Having said we always thought something would come along to derail a Fed rate hike we probably should have gone underweight credit. However with trading liquidity poor and with a reasonably high desire to be long amongst investors there has to be a big move to justify the change in stance. Also with a strong possibility that the Fed will relent and that China could add more stimulus soon, there may be a small window to be short European credit. So at the moment this could be a dangerous time to sell. However if it wasn’t for expected intervention and extraordinary central bank policy we would be very bearish as the global financial system remains an artificial construct reliant on the largesse of the authorities.

So 6 years after we first said what at the time was seen as heretical “tinfoil” conspiracy theory, now everyone admits it. Almost time to take a vacation maybe…

More…

Posted at 7:14 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

Friday’s action closed horribly in the U.S. with the Dow losing 530 for the day. This broke away from the support level of 17,200-17,300 which will now become overhead resistance. Global equity markets around the world are in crash mode as more than a dozen are already down 30-50% while the U.S. has just eclipsed the 10% correction zone. My guess is we will see a very weak opening with one or several rally attempts. An exhaustion bottom can be expected in the first half of the week with nervous strength later in the week. This scenario I believe is our best case.

No matter how the week plays out, the credit bubble has been identified, recognized and “pricked”, the equity markets are only a symptom. Do not be fooled by any strength this coming week, it should be used to raise cash. As September moves in, the September-October timeframe looks like a disaster. What may start out as circuit breakers being hit now, will ultimately be the plugs yanked out over the next couple of months. I believe a market closure is in our near term future.

As for gold and silver, these markets are both REALLY tight if you want the physical metal. If you are trading paper metal …oh well, can’t help you. This is the Great Credit Unwind and as such, currencies of all sorts (including the dollar) will take turns crashing. Watch the various sovereign treasury prices and yields (also CDS credit default swaps) as a clue to which country is experiencing an “attack du jour”.

The most likely US/Fed response will be some sort of QE whether they call it QE4 or not, who knows? The Fed will be forced again into further monetization, any talk of a rate hike from here is a complete joke. The real danger lies in what or how the world responds to another QE. Do they hit the Fed’s bid with full force? If I were a foreigner, I would certainly use the Fed as my “exit door” but this remains to be seen. Should foreign central banks (ie. China) sell into the Fed, game over and market closure could be quite rapid as in same or next day.

This is much speculation on my part as to “timing and how” this might all play out. The fact that credit is now unwinding means there is only one question of importance, “when”. Even this has become of less importance as “SOON” has jumped up as the answer. Gold and silver will be your only lifeboats as they are no one’s liability in a world where everything including the money in your pocket is someone else’s liability. IT’S OVER FOLKS! Please do not get caught up in what is mathematically coming!

Standing watch,

Bill Holter
Holter-Sinclair collaboration
[email protected]

Posted at 5:32 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

The following link is a very important interview done Friday morning well before the disastrous close.  Please listen and post or forward.  I will have comments posted late Sunday regarding what I expect this Monday and the week to bring.  The Great Credit Unwinding has begun!  There is precious little time for you to prepare and get done what you need to prior to a shutdown of the credit spigot.  Understand this and get cracking or don’t and sleep until you are rudely awakened!

Standing watch,
Bill Holter

Posted at 5:11 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

Here we are six years after the “Great Financial Crisis”. Since then, every acronym in the book has been thrown at the economy and financial markets but to what end? The economy has gone nowhere over these six years, “recovery” has been the meme …but never “expansion”. Hasn’t anyone wondered about this? In the good old days we used to hear the word “expansion” for two or three years before the natural recession would roll through. This time we’ve heard nothing but recovery …year after year. “Hope” (which is the vestige of fools), year after year.

I wrote in 2008, “this is a crisis of ‘solvency’, more liquidity cannot turn bad loans into good ones”. Now, six years later it turns out this thought process was 100% correct. Other than financial assets being “saved”, all of the QE, all of the additional debt taken on by various sovereign treasuries has done nothing to the real economy of Main St.. The plan was to inflate asset values and this would spill onto Main St.. Even mainstream media when interviewing the talking heads of Wall St. and the liars out of Washington are questioning this. Heck, Peter Fisher (past chief of the plunge protection team Martin) this morning brought this up on his own. He said the policy of inflating assets has not worked and cannot work. The five plus year experiment has failed. One does not have to look far or even “into” the bogus reporting of unemployment to see what is happening. All you need to do is look at oil and Dr. copper. They are both crashing and now threating to break trend lines going back to the 1980′s.

In as few words as possible, we are witnessing a credit collapse. These two commodities (along with many others) are crashing NOT because currencies are so well foundationed or strong and “going up”. No, we are watching them crash because of shrinking demand. This is also confirmed by trade numbers (or lack of). We also see freight rates imploding all over the world due to the same lack of demand and trade. This should tell you something in very loud and very clear terms, the “reflation” efforts have failed miserably!

You don’t need to take my word, your own gut feel or even your very own eyes to know this. “They” have admitted it and we now even see stories going mainstream with titles such as “is the Fed out of bullets? and Fed loses its grip on debt” http://www.bloomberg.com/news/articles/2015-08-20/credit-traders-gird-for-the-worst-as-fed-loses-its-grip-on-debt. Just this week we have seen Alan Greenspan warn the “credit markets are in a bubble” http://www.marketwatch.com/story/greenspan-warns-about-bond-market-bubble-2015-08-19 . If that were not enough, the St. Louis Fed http://www.zerohedge.com/news/2015-08-19/after-6-years-qe-and-45-trillion-balance-sheet-st-louis-fed-admits-qe-was-mistake admits QE was a mistake and did nothing to help the economy.

In the case of Mr. Greenspan, he is simply trying to get on the record far enough to hopefully make historians forget he was the one driving the bus on the road to perdition. He is now on the record gold “is money” and a safe haven versus his precious product the dollar. Has he had some sort of come to Jesus moment? I believe no, not even possible as he’s known all along how money works and where he was driving the bus. His days with Ayn Rand were filled with quotes and writings which sounded much like today’s tin foil hat society! He knew then, he knows now and will know until his last breath, the end of the credit road is in sight. His own “legacy” and nothing else is his concern.

The St. Louis Fed is known as the “teaching” district. Their recent admission QE was a mistake is a little different than Alan Greenspan trying to get on the record. I’m not really sure what their motive is for telling the truth? It certainly does not aid their cause because they are admitting failure.

We stand on the cusp of a credit meltdown. Never mind the stock markets or the commodity markets, they are simply “symptoms” of a credit bubble going bust. The talk of “will the Fed tighten” in Sept. (or EVER again) is hilarious! The Fed will be forced to implement another round of QE no matter what the acronym or name. More QE will do what more QE has already done, simply pile more debt on top of already TOO MUCH DEBT! There are no possible fixes left, the CREDIT CRISIS has arrived. No way to reflate and no way to actually “pay” (settle) on the debt. Central banks all over the world are now beginning to act in their own best interests, it’s like the sharks are eating the sharks.

The credit BUST is here! Markets all over the world are crashing and the U.S. is now losing control. After breaking down yesterday, today looks to be another bad day. If the PPT cannot get any traction today, Monday could be a disaster. I even question whether markets remain open at some point because closure will be the ONLY way to stop the selling which will be forced (by margin calls) in nearly all markets. This is not fear mongering, it is now math. We live in a make believe world created by the illusion that “credit” is a strong foundation, it cannot be. Bad credits cannot be made good by those with too much debt. This is exactly what has been attempted by the largest debtor on the planet. The failure will be spectacular. All money today is nothing more than credit … credit IS the problem!

It is imperative you understand how this will go down. You must have exactly what you think you’ll need and what you want to own going into this. You will have no opportunity to change horses when the markets close. Bluntly, it’s not the closure of markets that will kill you …it will be the reopening!

Standing watch,

Bill Holter
Holter-Sinclair collaboration
Comments welcome! [email protected]

Posted at 2:15 PM (CST) by & filed under In The News.

Stocks Plunge Sharply for a Second Day on Wall Street
By PETER EAVIS AUG. 21, 2015

Stock prices around the world continued to plunge on Friday, threatening to end one of the longest bull runs in the history of the United States stock market.

A searing six-year rally in United States stocks had advanced into the summer months, shrugging off challenges like the dispute over Greece’s debt. But in the last two weeks, world markets tumbled as investors grew increasingly concerned about developments in China, which unexpectedly devalued its currency last week, and the outlook for the economies of other large developing countries.

As the selling gathered steam Friday afternoon, some benchmark indexes were at or near 10 percent below their recent peaks — a “correction” in Wall Street parlance. “This is likely going to go down as the first meaningful correction in four years,” said David Rosenberg, an economist and strategist at Gluskin Sheff.

The Dow Jones industrial average, for instance, is more than 10 percent below the high it reached in trading in May. At Friday’s close, the index was down 530.94 points, to 16,459.75, a loss of 3.1 percent on the day.

The Standard & Poor’s 500-stock index, a broader benchmark, fell below the psychologically important 2,000 mark. It was down 3.2 percent on the day and more than 7 percent below its recent peak. It fell 64.84 points, to 1,970.89.

The Nasdaq, which contains a lot of technology stocks, fell 3.5 percent on Friday, a slide that takes the index nearly 10 percent below its latest high. It closed down 171.45 points, to 4,706.04.

The price of oil, as measured by the benchmark United States crude contract in New York, briefly fell below $40 per barrel, and later on Friday it was trading at $40.11, nearly 25 percent below its price at the start of the year. The decline in the price of oil and other commodities may indicate that there is less demand for such commodities because economies are slowing.

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Jim Sinclair’s Commentary

Credit market confidence depends on the assumption of Fed control. Loss of confidence guarantees the Plunge Protection Team becomes neutralized in all their activities. To manipulate the world markets, you must not fail to control any market of major proportions.

Credit Traders Gird for the Worst as Fed Loses Its Grip on Debt
Lisa Abramowicz
August 20, 2015 — 8:19 AM MST

What happens when the Federal Reserve loses its stranglehold over debt markets? Investors are finding out.

The selloff in corporate bonds is deepening and investors are seeking safety in the longest-dated government debt, which does best when the economy does worst. Defaults are rising as oil tumbles and investors are looking for the best ways to hedge against credit losses.

All this comes as the Fed does, well, nothing much. Instead, it’s China that’s taken the lead with new rounds of financial stimulus in the face of slowing growth. But some days it’s a free for all, with even Kazakhstan wielding its influence.

“Financial markets are desperate for the Fed to drive trading themes, but the ‘world’s central bank’ has fallen to the second rank this summer,” or sometimes third, Jim Vogel, an interest-rate strategist at FTN Financial in Memphis, Tennessee, wrote in a note Thursday.

Benchmark U.S. interest rates are still at about zero, and even if the Fed makes a move this year, it’ll only increase those rates by a fraction of a percentage point. In other words, U.S. monetary conditions are still very easy, more than six years after the worst financial seizure since the Great Depression.

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Posted at 1:22 PM (CST) by & filed under Jim's Mailbox.

Jim,

It appears credibility is commensurate with stature.

CIGA Wolfgang Rech

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Jim,

This is what concerned me yesterday. It appears to be slowly catching the Street’s attention.

What if the insiders, who received the shares at $68, decide to panic? Will it have ramifications in our market?

CIGA Wolfgang R

Wolfgang,

The most accurate sell signal is when a recently issued IPO closes below it issue price. Generally it is a precursor to all hell breaking loose in that situation.

Jim

Alibaba is quickly sinking towards its IPO price
By Matt Turner
Fri, Aug 21, 2015, 3:25 PM EDT

Alibaba’s share price is in danger of breaching its IPO price of $68, less than a year after the trading debut.

The Chinese e-commerce giant priced its huge initial public offering – the largest ever – in New York last September.

It went on to hit a high of $120 in November, but has fallen hard since then.

It hit a low of $68.30 in trading this morning, its lowest share price since listing.

The fresh low comes as concerns over China’s growth makes investors skittish.

Outflows from equity funds over the past week stand at a 15-week high of $8.3 billion. The Shanghai Composite index has fallen 11% this week. US stock indexes also fell for a fourth day in a row in early trading.

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Jim,

When they are all on standby throughout the world, you know things are serious!

4 AM EST tonight, which will be 5 PM Seoul, Korea time, is when the bombing of South Korea could begin. That’s when the ultimatum ends.

Sure, they’ve threatened before and it was just a bunch of hot air. But… you never know. Not saying it’s a certainty, but would you be long stocks and short gold going into the weekend?

CIGA Wolfgang Rech

Plunge Protection Teams Of The World, Unite!
Submitted by Tyler Durden on 08/21/2015 11:48 -0400

Submitted by Charles Hugh-SMith of OfTwoMinds blog,

The herd must be turned away from selling by any means available, and at this point, that means coordinated buying by all the world’s Plunge Protection Teams.

Central bankers are watching Marx’s dictum all that is solid melts into air play out in global stock markets with a terror informed by the scalding memories of 2008′s global financial meltdown.

Once the trap-door opens, there is no bottom without prompt action by the world’s Plunge Protection Teams–the plausible-deniability action heroes of the hyper-speculative status quo who leap into action when global stock markets threaten to melt down.

After half a decade of ceaseless saves, we all know the mechanics of Plunge Protection.

Since the majority of trading is now done by software programs (trading bots, algorithms, etc.), the first step is to create positive momentum so the bots will detect an “up day” and buy, buy, buy.

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Posted at 10:22 AM (CST) by & filed under In The News.

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My Dear Extended Family,

Now the Plunge Protection Team, real in fact and law, has to turn the tide immediately or confidence is gone and so is everything else except monetary gold and silver. Once again the big boys, as in the 1970-1980 period, are about to make the most money over the shortest period of time long on gold and silver. Nothing changes except this might well be the precious metals rally you never sell. There is a sound argument for $50,000 per ounce gold. There is a strong basis to consider the factual lack of physical gold and silver due to the secret buying by the gold banks and super wealthy personalities during the four year decline while pressuring the paper market for precious metals to make the purchases of the physical bullion. I believe that is that is the total story. I have never changed my mind or been told to by the inside, the only ones that really know what the plan is. I am however told that this rally off $1080 gold will be stupendous.

 

S&P 500 Sinks Most in 18 Months as Emerging-Asset Rout Spreads
Jeremy Herron
August 19, 2015 — 7:17 PM EDT Updated on August 20, 2015 — 5:51 PM EDT

The rout in emerging-market assets knocked the Standard & Poor’s 500 Index out of its seven-month trading range and sent U.S. equities down the most in 18 months amid mounting concern that global economic growth is faltering.

A selloff in currencies from Kazakhstan to Thailand roiled stocks around the world, wiping out 2015 gains in U.S. equities and sending the U.K. share market into a correction. Investors sought the safety of gold and Treasuries as the S&P 500 breached a key technical level its been above since March.

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Investor anxiety over emerging markets is increasing as the Federal Reserve considers when to boost interest rates, a move that would burnish the appeal of dollar assets. A global slowdown may delay the move, with minutes of the Fed’s July meeting out Wednesday indicating officials are concerned over stubbornly weak inflation caused in part by a commodities rout.

“There are so many more concerns than hopes,” said Larry Peruzzi, director of international trading at Cabrera Capital Markets LLC in Boston. “There are global growth concerns, Fed minutes created some uncertainty about rates, and also playing a part is oil poised to dip below $40. Add in light August volumes in the stock pot and you get a negative 1 percent move.”

The S&P 500 closed down 2.1 percent by 4 p.m. in New York, its lowest level since February. The MSCI All-Country World Index sank to a seven-month low, as the U.K.’s FTSE 100 Index slipped an eight straight day. Yields on 10-year Treasuries dropped six basis points, or 0.06 percentage point, to 2.07 percent, and gold advanced to a one-month high. Greek bonds declined Prime Minister Alexis Tsipras quit and called snap elections.

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It hurts to say it, but sometimes Donald Trump speaks the truth
Trevor Timm

Donald Trump offends entire voting blocks at will, constantly gets his facts wrong, and most of his policy positions are either contradictory or insane. Yet, on some issues, he’s also right.

His deliberate forays into xenophobia and arrogance on immigration and foreign policy certainly remain awful and ugly, but there’s also another reason he continues to sit atop the Republican polls: he speaks a particular kind of truth about some issues the way only someone with no filter can. These days, his venom particularly stinging to other Republicans, whom he has no problem attacking with a delightful abandon that is usually considered sacrilegious in inter-party primaries.

Or as Jon Stewart described it: “Trump has no control over the projectile vomit of dickishness that comes out of his mouth every time he opens it. It was inevitable that some of his word-puke was going to get on [Republicans].” And sometimes it’s just fun to watch. You can despise the man and dread his presidency, but still enjoy the show.

His criticism of “frontrunner” Jeb Bush – who is really only the frontrunner in the minds of billionaires – have been spot on, yet not something any of the other candidates would dare say for fear of denigrating the last two Republican presidents, Jeb’s brother and father. Trump took credit for the record audience during the first GOP debate by remarking, “Who do you think they were watching? Jeb Bush?” He’s right – Bush is boring. And I don’t mean boring in the technocratic, attention-to-details way. I mean he is mind-numbingly unoriginal and can’t even express those unoriginal ideas in a politically adept manner.

Trump has not minced words on George W Bush’s Iraq War, either, calling it the “disaster” that it was and is, and hammering Jeb for his stumbling defense of his brother’s war and its decade-long aftermath.

And when Trump posted a mash-up video on of the Bush family presidency on Instagram saying “Enough is enough – no more Bushes!” he nailed it. (Granted, Trump’s “solutions” for the second and third Iraq wars is beyond reckless and borderline sociopathic. For Isis, he prescribes re-invading Iraq and “stealing” all of their oil fields, and he claims “we should’ve invaded Mexico” instead of Iraq the first time.)

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China central bank tries to soothe global markets, says no basis for yuan to fall further
By Kevin Yao and Pete Sweeney

China’s central bank said on Thursday there was no reason for the yuan to fall further given the country’s strong economic fundamentals, helping to restore calm to jittery global markets after it devalued the currency earlier in the week.

As the yuan slid for a third straight day, the People’s Bank of China (PBOC) said the strong economic environment, sustained trade surplus, sound fiscal position and deep foreign exchange reserves provided “strong support” for the exchange rate CNY=CFXS.

China’s decision to devalue the currency on Tuesday by pushing its official guidance rate down 2 percent sparked fears of a “currency war” and roiled global financial markets, dragging other Asian currencies to multi-year lows.

It also drew accusations from U.S. politicians that Beijing was unfairly supporting its exporters.

The PBOC said at the time that the move was a one-off depreciation, but sources involved in the Chinese policy-making process told Reuters that some powerful voices within government were pushing for the yuan to go still lower, suggesting pressure for an overall devaluation of almost 10 percent.

PBOC Vice-governor Yi Gang said it was nonsense to believe that government expected the yuan to fall that far.

Earlier on Thursday, the PBOC said there was no basis for continued depreciation of the yuan.

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Jim Sinclair’s Commentary

This currency war is going to get wild and every central bank will seek to protect themselves or basically give up to the marketplace. I figure that is a very good reason for a new high in gold. The Plunge Protection Team that really exists in fact and law is going to have their hands full now. The second the major central banks break ranks this illusion of soundness in international sovereign debt will come to an immediate end. The last man standing will be holding gold. Not US or anyone’s treasuries.

Kazakhstan Follows Russia in Floating the Currency

ASTANA./TASS/. Kazakhstan will allow its national currency tenge to float freely, Prime Minister Karim Masimv said at a government telephone conference on Thursday.

“The decision was made to start a new economic policy from August 20 on the basis of inflation targeting and to cancel the currency corridor,” the premier cited a joint statement of the government and the National Bank.

“A new economic policy in conditions of fundamental negative changes in the global economy necessitates a new monetary policy to ensure a balance between economic growth and stability of prices,” he said.

“With this in view, the government and the National Bank of the Republic of Kazakhstan have made the decision to start the implementation of a new monetary policy, based on the inflation targeting regime and move to a floating exchange rate,” the prime minister said.

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Jim Sinclair’s Commentary

Mr. Williams shares the following with us.

- Unfolding “New” Recession Likely Will Override the Impact of Any Fed Action, Inaction or Continued Befuddlement
- Down in Second-Quarter 2015, Real Earnings Are on Track for Third-Quarter Decline
- Monthly Real Retail Sales Rose by 0.4% in July, with Annual Growth Still Signaling Recession
- July Annual Inflation: 0.2% (CPI-U), -0.3% (CPI-W), 7.8% (ShadowStats)

“No. 745: July CPI, Real Retail Sales and Earnings, Recession and the FOMC ”
Web-page: http://www.shadowstats.com

 

Pentagon Boosts Drone Flights 50% As Bernanke Warns Cutting Defense Spending Could Hurt Economy
August 18, 2015

Submitted by Mike Krieger via Liberty Blitzkrieg blog,

In the event you were becoming concerned that the U.S. government might be backing away from its longstanding policy of endless violence, militarism and bloodshed, fear not. If we know one thing for sure, it’s that defense contractors and the military-intelligence-industrial complex must earn. And continue to earn it will.

So despite the Air Force having a hard time finding pilots for its drones, the Pentagon still plans to ramp up drone flights by 50% over the next four years.

We learn from the Wall Street Journal that:

The Pentagon plans to sharply expand the number of U.S. drone flights over the next four years, giving military commanders access to more intelligence and greater firepower to keep up with a sprouting number of global hot spots, a senior defense official said.

While expanding surveillance, the Pentagon plan also grows the capacity for lethal airstrikes, the most controversial part of the U.S. drone program and its rapid growth under President Barack Obama . Strikes by unmanned aircraft have killed 3,000 people or more, based on estimates by nonpartisan groups.

More…

 

Initial Jobless Claims Rise For 4 Straight Weeks – First Time In 5 Years
Submitted by Tyler Durden on 08/20/2015 08:42 -0400

While still hovering at multi-decade lows, initial jobless claims (up 4,000 to 277k) have now risen for 4 straight weeks (for the first time since August 2010).

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Conference Board “Leading Indicators” Plunges To Lowest Since March 2013
Submitted by Tyler Durden on 08/20/2015 10:04 -0400

The July index of leading indicators, from The Conference Board, cratered in July. The self-referential index (which includes Treasury yields) tumbled to -0.2% as the curve steepened. The last time it was weaker than this was March 2013.

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Posted at 10:07 AM (CST) by & filed under Jim's Mailbox.

Jim,

The key here is “currency wars.”

If death and taxes are a certainty, then currency wars are a certainty to light the fuse for gold’s stratospheric ascent.

This is not simply a matter of perception, technicals, or fundamentals. It’s mathematical!

CIGA Wolfgang R.

Gold: the best defence in a genuine currency war
By: Dominic Frisby 19/08/2015 2,024

Now it’s China’s turn to devalue its currency

Every investment needs a good story if it’s going to fly.

“The internet is going to change the world”, drove the dotcom bubble. “They’re not building any more land,” drove buy-to-let. “The Chinese want the things we take for granted – and there are just so many of them,” drove commodities.

One of the reasons for gold’s demise is that its story lost its magic. It no longer seemed relevant.

I’ve said before that gold needs a new narrative. I didn’t think it would come so quickly.

But I think one may be starting to form.

Everybody’s talking about currency wars

The big financial story of last week was China’s repeated devaluation of the yuan. In just about every related article – and in many of the headlines – the phrase ‘currency wars’ has appeared. It’s all over the papers, TV and the internet. It’s even in the title above.

Of course, currency wars are nothing new. They’ve been around for as long as governments have issued money. Even the clipping of coins by Roman emperors is a sort of currency war, in that it was a devaluation of money.

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Jim,

I was right on the money. See my post and chart from August 6 below.

Dow closed at 16,990 today. Expect a 1,000 point bloodbath tomorrow.

CIGA Wolfgang Rech

Jim’s Mailbox
Posted August 6th, 2015 at 6:55 PM (CST) by Jim Sinclair & filed under Jim’s Mailbox .

Jim,

You could sense it coming!

The market is poised for a major crash. It just broke thru 17,400 support. If it closes today below this level, look out tomorrow!

Note the lower highs and lower lows,

then read the notes below this chart.

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Jim,

When they start downgrading the profitable, iconic animal kingdom (Mickey, Donald, Goofy, ESPN’s football players, etc.) you know the market’s heading for troubled waters.

Go for the gold!

CIGA Wolfgang R

Disney Hit With Another Downgrade On TV Concerns
By The Fly Staff | 08/20/15 – 08:31 AM EDT

NEW YORK ( TheStreet ) — Disney  (DIS) for the second time this week had its stock downgraded by a major Wall Street research firm on concerns of declining television subscriptions.

Bernstein, this morning, followed Wells Fargo’s lead in cutting the stock to Market Perform, the equivalent of a neutral or hold rating. Disney owns TV assets ABC and ESPN.

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Jim,

Technically bullish. This is last night’s close… 1,133.

This morning gold is trading at 1,142 up $9 from yesterday’s close below.

At 1,142, it’s broken thru the 50 day moving average [BLUE LINE]  at 1,138.

Also it’s following the 10 day moving average [GREEN LINE] (a trader’s dream)

Then look at the RSI, MACD, and Money Flow Index… all on bullish trajectory.

The Bull has woken up on our side, is the 1,180 – 1,190 resistance level.  Thru that, it’s the 12 handle!

Not guaranteeing anything, but certainly promising.

CIGA Wolfgang R

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