Posted at 11:07 AM (CST) by & filed under Jim's Mailbox.


Well worth keeping in mind.

CIGA Wolfgang Rech

HSBC: Gold Stands To Benefit From Trade Protectionism
October 14, 2016

Gold could benefit from growing protectionist views toward free trade globally, says HSBC. For starters, calls for protectionism suggest the masses are not happy with government policies. “Gold prices tend to rise during periods of contraction in world trade, and fall during periods of above-level growth, albeit sometimes with a lag,” HSBC says. Analysts note that the World Trade Organization cut its forecast for 2016 global trade growth by more than a third to 1.7%, reflecting a slowdown in China and falling levels of imports into the U.S. This is the first time in 15 years that international commerce is expected to lag the growth of the world economy, HSBC says. “In a world where trade flows may be challenged, gold is likely to be an indirect beneficiary,” the bank continues. “Trade flows partly reflect global economic health and well-being. Declines or obstructions to trade, to the extent that they represent economic dislocation, are likely to be supportive of gold.”\


Posted at 5:45 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Some day these knuckle head lawyers will figure out how to win these suits as they are winnable.

Scotiabank Pushed To Reveal Internal Emails In Gold Fixing Case
October 11, 2016

Canada’s Bank of Nova Scotia, one of the five banks said to have manipulated the gold market, which is worth trillions of dollars in trading value per year, will have to turn over internal emails and other correspondence spanning several years.

Daniel Brockett, the New York lawyer who is spearheading the US lawsuit, told Financial Post that the banks will also have to produce all relevant chat room instant messages and any other written communication they exchanged, whatever the media.

The move comes as a US judge said last week that gold investors could go ahead with their lawsuit accusing four major banks of conspiring for a decade to fix prices and exploit distortions at the expense of investors in global markets for the precious metal.


Posted at 9:41 AM (CST) by & filed under Jim's Mailbox.

Bill and Jim,

I am sure the turn around on gold below the $1,250 – $1,275 level on Friday has not been lost on you two since you are much closer to this than most of us.

Andy Mcquire, in his October 6th commentary on King World, mentions $1,275 as the price where there is 1,000 tonnes of naked shorts on gold on the Comex that need an opportunity to cover their bad bets.

And then we have Goldman Sachs saying that gold should be purchased below $1,250 as a “strategic” buying opportunity the following day.

Add to all of this that the smash happened when China was out of the market ALL WEEK for a national holiday and you have the makings of some interesting fodder for the gang on the phoney COMEX casino to get some major “work” done to help members of the club cover their rear ends before a major upward move in gold and silver.

With all this going on, along with the Obama administration blaming Russia for all the ills of the world in their attempt to distract the public from what is really going on, next week could be EXTREMELY interesting.


Bill and Jim,

Many parties have missed the significance of the Russians advice to return the students studying abroad.

I recall a story my grandfather told me about when at age 17 in 1917, him being in a Boys Finishing Academy in Moscow and being summoned by his uncle who was Postmaster General of Russia and being told that war was coming and instructed to return to the Academy that afternoon, pack his belongings and get on his horse and return to the Ukraine to warn the family to disburse into the countryside because they would be hunted for being wealthy landowners.

The Russian culture is such that family is always brought close to home in times of pending conflict.

Think about safety of children who maybe held as hostages or be subject to retribution at the hands of a country at war, or one that is subject to attack.

A parent will want their children closer at hand at home.

War is coming, Tom to Europe and the Levant. Note the 3 hour emergency meeting in London today. Events are cascading behind the curtains far faster than people know. Whether the war beaters succeed remains to be seen but should be subject to public debate and knowledge. Instead we get balderdash and deceit.

We do not know all the NATO moves but clearly by the Russian moves we can see and ascertain they are preparing for war on 3 fronts shortly. I knew sometime ago now that that was part of their preparation for what they thought might occur. And a reason they have not committed more to Syria. If they wanted to they could intensify the air program but that would leave them weak elsewhere so they are fighting on that front while maintaining their defensive capability. While it is in my opinion, suicide to strike at Syria given the defensive systems in place it does not mean that such an attempt will not be made. It would not be the first time troops are sent to death. While in the Ukraine NATO or perhaps more pointedly US snipers are positioned along with certain Polish troops ( regular or volunteer, likely mixed) for a move on the Donbass with the intent to draw Russia in to what is seen by the planners as contained conflicts. It is why Russia moved the Iskander missiles into Kallingrad which from there will be able to reach as far as Berlin. ( 450 mile radius). Think about why 3 new vessels were dispatched to the Med equipped with Kalibir missiles and having the most deadly anti ship missiles that jointly were developed with India, to why in the case of an outbreak of hostilities the command has been given for local decentralized response.

Hollande being the weak foolish leader he is is, toeing the flawed US line in foreign policy ( it will continue to cost him in the up coming elections) and it is why Putin cancelled his visit of October 19th. In fact, rumor has it that Lavrov will be told to stop talking to Kerry, in the not too distant future ( a terrible signpost when it occurs). A Russian tradition is to always talk and keep the lines of communication open until the advent of hostilities, so one gleams from this when this action happens, an outbreak of “hot” hostilities is very near.

There is so much, we are not being told that it is truly saddening and the media if it had character would have shame. Apart from the alternative media and various bloggers the rest is not worth spending time on. And if when looking at alternative media, ask for who is paying the bills in the background as that too is heavily influenced.

With the cabal in the process of losing control on many fronts it seems war is their preferred reaction. To what gain remains to be seen or even what logic applies to conflict that can go horribly wrong with dire consequences for regions, people and perhaps even the planet. There are simply NO winners in a nuclear fight between nations like America, Russia and China. And the likelihood that peace will be given a chance to bring prosperity to the world is fading fast.


CIGA Robert

Russian Government Officials Told To Immediately Bring Back Children Studying Abroad
October 12, 2016

In Europe, when it gets serious, you have to lie… at least if you are an unelected bureaucrat like Jean-Claude Juncker. In Russia, however, when it gets serious, attention immediately turns to the children.

Which is why we read a report in Russian website Znak published Tuesday, according to which Russian state officials and government workers were told to bring back their children studying abroad immediately, even if means cutting their education short and not waiting until the end of the school year, and re-enroll them in Russian schools, with some concern. The article adds that if the parents of these same officials also live abroad “for some reason”, and have not lost their Russian citizenship, should also be returned to the motherland. Znak cited five administration officials as the source of the report.

The “recommendation” applies to all: from the administration staff, to regional administratiors, to lawmakers of all levels. Employees of public corporations are also subject to the ordinance. One of the sources said that anyone who fails to act, will find such non-compliance to be a “complicating factor in the furtherance of their public sector career.” He added that he was aware of several such cases in recent months.


Posted at 7:52 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

So…HFT crushed the Pound yesterday in 2 minutes???

Two-Minute Mystery Pound Rout Puts Spotlight on Robot Trades

October 7, 2016

Making sense of the foreign-exchange market is Derek Mumford’s bread and butter, but he couldn’t explain this.

In the span of just two minutes in early Asia trading on Friday, the British pound had plunged more than 6 percent, sending the fourth most-traded currency on the planet to the lowest level in 31 years. Mumford, who advises companies on foreign-exchange and interest-rate risks, scrambled to find out why. There was talk of France’s president pushing for a hard-line approach on Britain’s exit from the European Union, and recycled rumors of a “fat finger” trade, but nothing that would justify a drop of this magnitude.

“It was out of proportion to the supposed trigger,” said Mumford, a director at Rochford Capital Pty in Sydney.


Posted at 10:13 AM (CST) by & filed under In The News.


‘I warn you that politicians of both parties will oppose the restoration of gold, although they may outwardly seemingly favor it. Unless you are willing to surrender your children and your country to galloping inflation, war and slavery, then this cause demands your support. For, if human liberty is to survive in America , we must win the battle to restore honest money.’ Howard Buffet. (1903-1964).

Jim Sinclair’s Commentary

The latest from John Williams’

- Political Shenanigans in Reporting of September Labor Conditions Were No Worse than the Standard Monthly Reporting Gimmicks

- Below-Consensus Headline Gain in September Payrolls Probably Was a Contraction, Net of Reporting Biases

- Headline Annual Payroll Growth Held at a 31-Month Low

- With Full-Time Jobs Down in September, All the Household-Survey Employment Gain Was in Part-Time Jobs

- September 2016 Unemployment Rate Changes Were Uneven: U.3 Rose to 5.0%, U.6 Held at 9.7%, ShadowStats-Alternate Rate Held at 23.0%

- Annual M3 Growth Held Even at 4.3% in September 2016, versus August 2016, While the Annual Decline in the Monetary Base Hit a Record

“No. 838: September Employment and Unemployment, ShadowStats Ongoing M3”

Posted at 7:24 PM (CST) by & filed under In The News.


Jim Sinclair’s Commentary

A rather interesting foreign policy stance.

CONFIRMED: U.S. Backs Down Over Syria After Russian Threat To Shoot Down American Aircraft
October 7, 2016

Following yesterday’s Russian warning that Russia stood ready to shoot down US aircraft or missiles attacking Syria, the US has confirmed all plans for military action against Syria have been dropped.

White House spokesman Josh Earnest confirmed this speaking to reporters on Thursday 6th October 2016.

“The president has discussed in some details why military action against the Assad regime to try to address the situation in Aleppo is unlikely to accomplish the goals that many envisioned now in terms of reducing the violence there. It is much more likely to lead to a bunch of unintended consequences that are clearly not in our national interest.”


Jim Sinclair’s Commentary

The bear is waking up!


Jim Sinclair’s Commentary

You know that voter is a strong group in Washington with reservation in the big underground living quarters in the Mountain that want a nuclear way with Russia.

The US Air Force Just Dropped Two Fake Nukes
October 6, 2016

A pair of U.S. Air Force B-2 bombers dropped two 700-pound faux nuclear bombs in the middle of the Nevada desert within the past few days. Now the Pentagon wants to tell you about it.

Conducted “earlier this month,” according to an Oct. 6 press release, the test involved two dummy variants of the B61, a nuclear bomb that has been in the U.S. arsenal since the 1960s. One was an “earth penetrator” made to strike underground targets, the other a tactical version of the B61. Neither carried an actual warhead.

“The primary objective of flight testing is to obtain reliability, accuracy, and performance data under operationally representative conditions,” said the statement from the National Nuclear Security Administration, the Energy Department arm that oversees such tests. “Such testing is part of the qualification process of current alterations and life extension programs for weapon systems.”


Jim Sinclair’s Commentary

The latest from John Williams’

- With Contracting Monthly, Quarterly and Annual Activity, Real Construction Spending Remained Down by 25% (-25%) from Recovering Its Pre-Recession Peak

- Weakest Real Construction Spending Growth since Series Trough in 2011

- Widening of August Trade Deficit Was Due to Shrinking Services Surplus, Reflecting Payments for Importing Rio Olympics Intellectual Property

- With Second-Quarter Real Merchandise Trade Deficit Worst Since 2007, Temporary Soybean Export Explosion Has Narrowed Third-Quarter Deficit

- Central Bank Intervention Appeared to Drive October 4th Gold Selling. Is a Policy Shift Pending?

No. 837: August Trade Deficit, Construction Spending, Fed Policy

Posted at 10:40 AM (CST) by & filed under In The News.

In Major Victory For Gold And Silver Traders, Manipulation Lawsuit Against Gold-Fixing Banks Ordered To Proceed
October 5, 2016

Back in April, precious metal traders felt vindicated when Deutsche Bank agreed to settle a July 2014 lawsuit alleging precious metal manipulation by a consortium of banks. As a reminder, In July 2014 we reported that a group of silver bullion banks including Deutsche Bank, Bank of Nova Scotia and HSBC (later UBS was also added to the defendants) were accused of manipulating prices in the multi-billion dollar market. The lawsuit, which was originally filed in a New York district court by veteran litigator J. Scott Nicholson, a resident of Washington DC, alleged that the banks, which oversee the century-old silver fix manipulated the physical and COMEX futures market since January 2007. The lawsuit subsequently received class-action status. It was the first case to target the silver fix.

The alleged conspiracy started by 1999, suppressed prices on roughly $30 billion of silver and silver financial instruments traded each year, and enabled the banks to pocket returns that could top 100 percent annualized, the plaintiffs said.

Many expected that this case would never go anywhere and that the defendant banks would stonewall indefinitely: after all their legal budgets were far greater than the plaintiffs.


Jim Sinclair’s Commentary

Some see it a little differently.

Deutsche Bank is latest victim of America’s Treasury war
October 5, 2016

António Horta Osório, the chief executive of Lloyds Bank has read it; Peter Sands, the former chief executive of Standard Chartered, has most certainly read it; and Stuart Gulliver, the chief executive of HSBC, thought so much of the book that he hired its author. I suspect there isn’t a bedside table of a single European bank executive worth their salt that has not been graced by a copy of Treasury’s War by Juan Zarate.

It is not hard to see why. It details how US Treasury and White House officials worked out that the dollar’s unrivalled position as the currency of choice for international trade provided them with a unique weapon against America’s enemies – and, increasingly, the world’s banks.

“In Treasury, we realised that private sector actors – most importantly, the banks – could drive the isolation of rogue entities more effectively than governments, based principally on their own interests and desires to avoid unnecessary business and reputational risk,” Zarate writes. US officials developed and deployed a variety of financial techniques against terrorist groups, organised criminals and enemy states such as Syria, North Korea and Iran.


Liberal Professors Outnumber Conservatives Nearly 12 To 1, Study Finds
October 6, 2016

A new study confirms what even the most casual observer of higher education has long known — that conservative professors are vastly outnumbered by liberal ones — but it also shows that the problem is getting worse.

Published in Econ Journal Watch last month, the study looks at faculty voter registration at 40 leading universities and finds that, out of 7,243 professors, Democrats outnumber Republicans 3,623 to 314, or by a ratio of 11 1/2 to 1.

The study comes after a tumultuous few years at American colleges and universities, marked by campus race protests, the disinvitation of conservative speakers and the popularization of phrases such as “trigger warning” and “safe space.”


Jim Sinclair’s Commentary

All is well is Hades. Anyone interest in a World War?

Russia Strongly Warns US Against Striking Syrian Army
October 6, 2016

MOSCOW (AP) — The Russian military on Thursday strongly warned the United States against striking the Syrian army, noting that its air defense weapons in Syria stand ready to fend off any attack.

The statement underlined high tensions between Moscow and Washington after the collapse of a U.S.-Russia-brokered Syria truce and the Syrian army’s offensive on Aleppo backed by Russian warplanes.

Russian Defense Ministry spokesman Maj. Gen. Igor Konashenkov said any U.S. strikes on areas controlled by Syrian President Bashar Assad’s government could jeopardize the lives of Russian servicemen.


Jim Sinclair’s Commentary

You know it is just that simple. Edwards is spot on.

ALBERT EDWARDS: The Economy Looks Like What ‘I Saw Before The 2008 Global Financial Crisis’
October 6, 2016

Albert Edwards does not agree with Larry Summers.

Societe Generale’s über-/perma-bear strategist laid out another dire, debt-fueled prediction in a note to clients on Thursday, warning that the problems with central banks and increasing debt looks like what he saw “before the 2008 Global Financial Crisis.”

In it, Edwards recounts a trip to New York City for a conference at which Larry Summers spoke about his “secular stagnation” thesis.


Jim Sinclair’s Commentary

Yeah sure, first you load your country with undercover terrorists and second you break the world. Good thinking?

Merkel May Have To Make A Choice Of Last Resort
October 6, 2016

WHEN it comes to speculation about German government support for Deutsche Bank, Chancellor Angela Merkel has no good answer.

After years leading the push for new EU rules to contain banking crises without putting taxpayers on the hook, you might expect Merkel to rule out state aid for Deutsche Bank. She has not, even though that would be politically expedient with an election due in 2017.

Confronted with ailing banks, Merkel and other EU leaders face a quandary. Markets assume they will not deploy their biggest weapon — bail-in, or imposing losses on private investors — when it comes to a giant such as Deutsche Bank because of the risk of contagion. Yet policy makers are also increasingly ambivalent about the bloc’s solution for too-big-to-fail banks, largely for the same reason.