Posted at 1:11 PM (CST) by & filed under Jim's Mailbox.


As you dig deeper into the financial circumstances in the US, you find that things are certainly not very rosy for the lower classes.

CIGA Larry

U.S. Lags Behind G-7 in Bank Accounts as Poor Can’t Build Assets
By Jeanna Smialek  Nov 11, 2014 9:47 AM ET 

Marissa Austin Tobin has lived most of her 37 years without a bank account.

“I was irresponsible,” said Austin Tobin, who lives in Louisville, Kentucky. “I would pay my bills, but I would just spend the rest of my money.”

She needed to establish a financial history to qualify for a loan to start a catering business, so Austin Tobin opened accounts this year under a “Fresh Start” banking program that aims to help those who had mismanaged finances. Her savings, while still limited at about $500, are growing.

That’s not the case for some lower-income households as the world’s largest economy lags behind other developed nations in banking participation. The share of the U.S. population 25 and older with a savings or checking account was 91 percent in 2011, lower than any other Group of Seven nation except Italy, based on the latest available World Bank data. That compares with 98 percent in Canada and the U.K. and 99 percent in Australia.

A less inclusive financial system cuts into people’s ability to prove creditworthiness and build assets, making it more difficult for households to get ahead. The costs of alternatives, including check-cashing operators, payday lenders and nonbank money-order suppliers, often borne by those without accounts, also exacerbate wealth inequality.



This result will help give courage to the gold initiative that the Swiss vote on the end of November. The status quo central planners will be pushed further and further by the people want to control of their life and assets.

CIGA Larry

Catalan Voters Tell Madrid to Back Down
45 Nov 10, 2014 8:07 AM EST
By Leonid Bershidsky

Spanish Justice Minister Rafael Catala may have grounds to declare that yesterday’s nonbinding independence vote in Catalonia was “an act of pure propaganda that only served to exacerbate divisions among Catalans.” Yet in the face of such open contempt from the Madrid government, support for Catalan independence keeps growing.

The outcome of the poll was ambiguous for secessionists. Some 2.24 million people voted, 80.7 percent of them for full independence, another 10 percent for considering Catalonia a state but within Spain, and 4.5 percent against even the idea of statehood. That puts the number of secession supporters at only a third of the 5.4 million people estimated (by the Catalan government) to be eligible to vote. Because this poll was nonbinding, voters weren’t fully confronting the reality of splitting off from one of the world’s major nations and a key European Union member.

And as in Scotland, the spiral of silence phenomenon probably pushed people to back independence. As Susana Beltran, a member of anti-secession Catalan Civil Society, explained, "People who don’t want this are afraid to speak out. They don’t want problems with their friends, with their jobs, in life in general.”




Anyone want to take a jab at this one? Let’s see how this is reported in the MSM. Talk about STRANGE!

CIGA David

ISIS Going Back To The "Gold Standard"
Submitted by Tyler Durden on 11/11/2014 – 10:00

It appears the terrorist organization known as Islamic State has been watching the fiasco of fiat money and reading Alan Greenspan and Ron Paul. As The Daily Mail reports, ISIS wants to introduce its own currency and plans to bring back solid gold and silver dinar coins in an attempt to solidify its makeshift caliphate. Around 1500 years after the Dinar was first introduced – made from pure gold and silver – ISIS plans to implement the change within a few weeks, changing changing from regular dinars and Lira to golden dinars and silver dirhams.


Posted at 11:10 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

John Williams comments.

- October’s Labor Numbers Skewed by Seasonal-Factors Distorted by Last Year’s Government Shutdown 
- Resulting Understated October 2014 Unemployment Rates:  5.8% (U.3), 11.5% (U.6), 23.0% (ShadowStats) 
- Election Polling Again Indicated No Economic Recovery, With Pocketbook Issues Dominating the Voting – New Proprietary Analyses 
- GAAP-Based 2014 Federal Deficit Was About $6 Trillion, Versus Headline Cash-Based $0.5 Trillion Shortfall 
- 2014 Net Federal Obligations Approached $100 Trillion, GAAP-Based, Net Present Value 
- Reporting Shenanigans: Headline Deficit Well Shy of Jump in Debt 
- Fed Monetized 78% of Headline 2014 Federal Deficit 
- Annual Money Supply M3 Growth Held at 4.2%

"No. 672: October Labor Data, Money Supply M3, Federal Deficit, Election 2014" 


Jim Sinclair’s Commentary

More blowback from sanctions.

China to avoid dangerous maritime route thanks to gas deal with Russia’
Published time: November 10, 2014 11:11

Most of China’s energy resources are imported via the Pacific, and is threatened by the US military presence. The gas deal with Russia allows China to minimize the risks, China-based journalist Brendan O’Reilly told RT.

Lin Shaowen from China Radio International on the China-Russia gas deal: “It’s a deal coming at the time of need. When China is looking for more sources of energy, Russia is looking for stable long-term market that is reliable. We both have reached a deal that will last for decades. So it’s certainly good news for the two economies.”

Russia and China have agreed a second gas deal, the so-called western route. President Vladimir Putin and Chinese leader Xi Jinping signed a memorandum of understanding at the Asia-Pacific summit in Beijing. The deal is expected to be signed next year and secure a yearly supply of 30 billion cubic meters of gas to China.

RT: Russia and China are inching towards their second huge gas deal. How big is this agreement? What does this deal mean for Russia, China and the rest of the world?


Jim Sinclair’s Commentary

Part of the Great Leveling.

Ten million jobs at risk from advancing technology
Up to 35pc of Britain’s jobs will be eliminated by new computing and robotics technology over the next 20 years, say experts
By Alan Tovey, Industry Editor
5:00AM GMT 10 Nov 2014

Ten million British jobs could be taken over by computers and robots over the next 20 years, wiping out more than one in three roles.

Low-paid, repetitive positions are most likely to go, with people earning less than £30,000 a year five times more likely to see their jobs taken over by machines than those paid £100,000, new research has warned.

Huge advances in technology risks creating an under-class of low-skilled people whose jobs have been automated, according to a joint report from Deloitte, the Big Four accountancy firm, and the University of Oxford.

The research predicts that as much as 35pc of jobs across the country will be made redundant by technical advances over the next 10 to 20 years – some 10.8m positions. According to the latest official data, 30.76m people are employed in the UK.

The study, which contains data for all of the UK but focuses on London, says the lower-paid jobs in the capital are eight times more likely to be wiped out than better paid ones.

Overall, workers in London are seen as being safer than those in the rest of the UK, with the study predicting 30pc of jobs will go in the capital. This is because London has fewer manufacturing jobs – a sector likely to face greater automation – as well as a higher proportion of jobs which are creative or require greater skills and knowledge that are less susceptible to being taken on by machines because they cannot replicate human thought.


Jim Sinclair’s Commentary

This is as hardball as it gets. Science has now become a high risk occupation

5 nuclear scientists assassinated near Damascus – report
Published time: November 10, 2014 08:00  
Edited time: November 10, 2014 11:05

Five Syrian nuclear scientists have reportedly been killed by unknown assailants while riding a bus north of Damascus, near the research center where they worked, the UK-based Syrian Observatory for Human Rights reports.

Unidentified attackers murdered five nuclear energy engineers who worked in the scientific research center near the neighborhood of Barzeh, northern Damascus,” Observatory director Rami Abdel Rahman told AFP.

The news agency meanwhile reports that four of the atomic engineers were Syrian, while the other one was Iranian.

“Their bus was ambushed while they were on their way to the research centre. Their assailants shot them dead," Rahman said.

So far no one has claimed responsibility for the attack.

The UN International Atomic Energy Agency (IAEA) said last year that Syria had declared a “small amount of nuclear material,” most probably highly enriched uranium, used in a Miniature Neutron Source research reactor, near Damascus, Reuters reported.

This is not the first time that Syrian scientists have been targeted in deliberate assassinations.


Xi Dangles $1.25 Trillion as China Counters U.S. Refocus
By Bloomberg News  Nov 9, 2014 5:01 PM GMT+0100 

President Xi Jinping sought to counter U.S. efforts aimed at boosting influence in Asia by flexing China’s economic muscle days before a Beijing summit with his counterpart Barack Obama.

Speaking to executives at a CEO gathering in Beijing, Xi outlined how much the world stands to gain from a rising China. He said outbound investment will total $1.25 trillion over the next 10 years, 500 million Chinese tourists will go abroad, and the government will spend $40 billion to revive the ancient Silk Road trade route between Asia and Europe.

“China’s development will generate huge opportunities and benefits and hold lasting and infinite promise,” Xi said. “As China’s overall national strength grows, China will be both capable and willing to provide more public goods for the Asia Pacific and the world.”

China has used the Asia-Pacific Economic Cooperation forum summit under way in Beijing to put forward its own trade and economic proposals to strengthen its sway in Asia. Those incentives complement a greater assertiveness in territorial disputes and moves to upgrade its military after decades of U.S. dominance in the region.

China is rolling out counteroffers for each promise made by President Barack Obama, whom he’ll meet this week in Beijing as part of the summit. Xi is pushing the Free Trade Area of the Asia-Pacific in response to the U.S.-backed Trans-Pacific Partnership, which excludes China. An Asia Infrastructure Investment Bank mostly financed with money from Beijing is seen as an answer to the Asian Development Bank and other multinational lenders where the U.S. and Japan have the most influence.


Jim Sinclair’s Commentary

Wars can easily start by mistake or malfunction.

Close military encounters between Russia and the west ‘at cold war levels’
Report lists 40 cases of ‘brinkmanship’ in past eight months, including near-collision between Russian spy plane and passenger jet
Ewen MacAskill, defence and security correspondent
Sunday 9 November 2014 19.01 EST

Close military encounters between Russia and the west have jumped to cold war levels, with 40 dangerous or sensitive incidents recorded in the past eight months alone, according to a report published on Monday.

The report, Dangerous Brinkmanship by the European Leadership Network, logs a series of “highly disturbing” incidents since the Ukrainian crisis began earlier this year, including an alarming near-collision between a Russian reconnaissance plane and a passenger plane taking off from Denmark in March with 132 passengers on board.

What made the incident especially dangerous was that the Russian plane did not have on its transponders, the usual method of signalling its presence to other aircraft.

The report by the London-based thinktank comes after a warning from former Soviet president Mikhail Gorbachev that the world is “on the brink of a new cold war”.

The encounters have taken place mainly around the Baltic Sea but also in the Black Sea and along the US and Canadian borders.

“We believe the nearly 40 incidents logged are a very serious development, not necessarily because they indicate a desire on the part of Russia to start a war but because they show a dangerous game of brinkmanship is being played, with the potential for unintended escalation in what is now the most serious security crisis in Europe since the cold war,” say the report’s authors Thomas Frear, Lukasz Kulesa and Ian Kearns.


John Williams’ Take On The October Unemployment Report: "The Economy Remains In Terrible Shape"
Tyler Durden on 11/10/2014 11:40 -0500

When it comes to inflation data, there are two parallel sources: the BLS, and ShadowStats’ John Williams, who continues to plough through the underlying "data" using pre-pre-pre-revision protocols, and every month reveals a parallel universe in which something shocking is revealed: the truth. Here is his take on the October "weaker but really stronger than expected" jobs numbers. Here is what really happened.

From ShadowStats

Never Recovered, the Economy Remains in Terrible Shape.  The large number of opening headlines in today’s (November 9th) missive reflects various stories, ranging from twisted unemployment data, to an election dominated by underlying economic reality, and to headline 2014 financial results on the federal government’s operations that should raise some troubling questions in the markets.  The general outlook is unchanged

Twisted Unemployment Numbers.  Headline October 2014 unemployment reporting, in particular, was skewed heavily by warped seasonal-adjustment factors that do account properly for last year’s government shutdown.  When the U.S. government closed in October 2013, the shutdown encompassed the Bureau of Labor Statistics (BLS) base-period for determining the unemployment and employment detail in the household survey, as well as for determining employment in the payroll survey.  The BLS was unable to determine fully the impact of the government shutdown on the monthly October labor data.

For last year’s October 2013 headline payroll-employment survey, the shutdown’s impact generally was guesstimated by the BLS, but it was not reflected in the headline reporting of the time.  For the headline unemployment and employment detail, some government employees were counted among the unemployed as being on temporary lay-off, some were just counted as employed but absent from work.  Where the headline employed dropped by 735,000, unemployed only rose by 17,000 in October 2013 (see Commentary No. 572 and Commentary No. 580 for the analysis of the time).  Where all government employees should have returned to work by the November 2013 reporting, the headline employed rose by 818,000, the unemployed dropped by 365,000.


Posted at 2:44 PM (CST) by & filed under In The News.

UBS To Settle Gold/Silver Manipulation Activities
November 9, 2014 Financial Markets

Intrinsic currencies like gold and silver, for example, are acceptable without a 3rd party guarantee.  – Alan Greenspan, (LINK)

The Financial Times is reporting that UBS has agreed to settle charges against it by the UK’s Financial Conduct Authority that it engaged in the manipulation of the gold and silver markets.  While it may come as a surprise to chart wranglers like Trader Dan or interminably hot air windbags like Dennis Gartman and Martin Armstrong that gold and silver are manipulated by the big bullion banks, UBS has de facto admitted to such illegal activity.

This comes on the heels of a £1.5 billion pound ($2.4 billion) settlement agreement (to be announced Wednesday) that includes UBS, Barclays, Citigroup, HSBC, JP Morgan and RBS connected to charges of foreign exchange market rigging.

If these banks are rigging forex trading, it means that they are de facto rigging gold and silver. Why? Just ask Alan Greenspan: “Gold is a currency. It is still, by all evidence, a premier currency. No fiat currency, including the dollar, can match it…Gold has a monetary characteristic which is intrinsic.”

I’m wondering if part of the $40 move higher in gold on Friday was driven by insiders – i.e. the banks – who knew that the UBS gold/silver manipulation settlement deal was going to be announced by the FT today (Sunday, November 9).



Jim Sinclair’s Commentary

Charles Nenner says the following:

Gold Volatility – Weekly Cycles – November 2, 2014 Sunday – Forecast 9 of 10

We are now positive on Gold since our last cycle bottomed

Also, volatility seems to pick up

Gold – Longer Term Weekly Cycles – November 2, 2014 Sunday – Forecast 10 of 10

We took out all short term cycles and – looking at the picture now – we have to get bullish on Gold

Chinese and Canadian central banks agree to $30 billion currency swap

Submitted by cpowell on 07:13PM ET Saturday, November 8, 2014. Section: Daily Dispatches

By Andrea Hopkins
Saturday, November 8, 2014

BEIJING — The central banks of China and Canada have agreed to a currency swap worth 200 billion yuan ($32.67 billion) or C$30 billion, according to a Canadian government statement issued at a meeting of Asia Pacific nations on Saturday.

The swap will be effective for three years, according to a separate statement from China’s central bank. The agreement was announced after Canadian Prime Minister Stephen Harper met Chinese Premier Li Keqiang.

China’s central bank, the People’s Bank of China, will also appoint a clearing bank in Canada for yuan — or renminbi, as the currency is also called — as part of a memorandum of understanding, the statement said. It did not say which bank would be appointed as the clearing bank, but it is likely to be one of China’s four largest banks. …

… For the remainder of the report:…

Posted at 1:27 PM (CST) by & filed under Jim's Mailbox.

Dear Jim,

The harder the US pushes Russia, the closer it gets to China.

CIGA Larry

Russia, China Sign Second Mega-Gas Deal: Beijing Becomes Largest Buyer Of Russian Gas
Submitted by Tyler Durden on 11/09/2014 09:51 -0500

As we previewed on Friday, when we reported that "Russia Nears Completion Of Second "Holy Grail" Gas Deal With China", moments ago during the Asia-Pacific Economic Cooperation forum taking place this weekend in Beijing, Russia and China signed 17 documents Sunday, greenlighting a second "mega" Russian natural gas to China via the so-called "western" or "Altay" route, which as previously reported, would supply 30 billion cubic meters (bcm) of gas a year to China.

Among the documents signed between Russian President Vladimir Putin and Chinese leader Xi Jinping were the memorandum on the delivery of Russian natural gas to China via the western route, the framework agreement on gas supplies between Russia’s Gazprom and China’s CNPC and the memorandum of understanding between the Russian energy giant and the Chinese state-owned oil and gas corporation.

“We have reached an understanding in principle concerning the opening of the western route,” Putin said. “We have already agreed on many technical and commercial aspects of this project, laying a good basis for reaching final arrangements.”

RIA adds, citing Gazprom CEO Alexei Miller, that the documents signed by Russia and China on Sunday define the western route as a priority project for the gas cooperation between the two countries.


Posted at 1:32 PM (CST) by & filed under In The News.



Jim Sinclair’s Commentary

The fix was manipulated to support a bear market. Not to hard to determine if you were hurt.

If the London gold fix may have harmed you, contact Berger & Montague soon
Submitted by cpowell on 05:51PM ET Thursday, November 6, 2014. Section: Daily Dispatches
8:53p Thursday, November 6, 2014

Dear Friend of GATA and Gold:

If you traded gold or gold futures or options in the last decade and feel that you were injured by the manipulation of the London gold fix, you may have some recourse.

In July a judge in U.S. District Court in New York appointed Berger & Montague of Philadelphia and Quinn Emanuel Urquhart & Sullivan of New York, two major law firms, to lead an anti-trust lawsuit against the London gold-fixing banks.

Berger & Montague was of counsel to GATA some years ago and a press release about the firm’s appointment is posted at the law firm’s Internet site here:–montague-to-helm-gold-fix-c…

More information about the case, including the text of the lawsuit, is posted at the law firm’s Internet site here:…

In March GATA invited gold traders and investors to contact Berger & Montague to learn about the firm’s investigation of the London gold price fixing:

Now that the case has become more active, GATA again encourages anyone who believes he may have been harmed by the London gold fix — gold traders and investors, gold mining companies, and others — to contact Berger & Montague to learn about the case. Since the court has set a major deadline in December, it will be good to make contact with Berger & Montague soon. The lawyers handling the case may be reached by e-mail at:

[email protected]

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust


Jim Sinclair’s Commentary

This will be the largest file in the world on the finest names possible internationally

Apec agrees network to share information on corruption
8 November 2014 Last updated at 05:24 ET

Countries of Asia and the Pacific region have agreed to set up a network to share information on corruption.

Apec members said in a statement that the purpose of the agreement, proposed by China, was to deny safe haven to anyone engaged in corruption.

It comes amid efforts by Chinese President Xi Jinping to clamp down on corrupt officials, including those who try to escape abroad.

Apec leaders are expected to back the deal at a summit in Beijing next week.

US Secretary of State John Kerry hailed the move as a "major step forward".

"Corruption not only creates an unfair playing field, it not only distorts economic relationships, but corruption also steals from the people of every country the belief that the system can work for everybody," he told journalists.

Extradition concerns

The Asia Pacific Economic Cooperation (Apec) group statement said it had set up the Network of Anti-Corruption Authorities and Law Enforcement Agencies (ACT-NET).

The network commits its 21 member states to "deny safe haven to those engaged in corruption, including through extradition, mutual legal assistance and the recovery and return of proceeds of corruption".

It will also "establish measures and systems to protect whistleblowers".

Officials say that the proposal was initiated by China and backed by the US.


Jim Sinclair’s Commentary

Planning? How unusual a challenge for the industrialized nations.

Leaders of BRICS countries to hold negotiations before G20 summit
17:33 November 7, 2014 Interfax

The leaders of the BRICS countries will meet before the G20 summit in Brisbane, Australia, Russian presidential aide Yury Ushakov said.

"The main task is to reach agreements on the main issues on the agenda of the G20 summit. Specifically, the meeting will address the implementation of the decision to launch the new BRICS Development Bank and the pool of contingent currency reserves with a total capital of $200 billion, which was mentioned in the previous summit," Ushakov told a briefing on Friday.

Ushakov said special attention will be given at the BRICS meeting to issues relating to the reform of international financial institutions, specifically, redistribution of IMF quotas.

"The BRICS countries favor prompt implementation of the 2010 agreements as the most just and meeting the modern economic reality," he said.

Ushakov said the meeting will also address international issues, specifically, the intensification of the interaction between the BRICS countries in the settlement of regional conflicts, issues relating to the non-proliferation of weapons of mass destruction, counterterrorism, drug threat, and international information security.

Ushakov reiterated that Russia plans to give attention to trade expansion and increasing technological and industrial cooperation.

The BRICS countries create almost 30% of the world’s GDP ($15.4 trillion) and make up the world’s largest market because some 3 billion people (40% of the planet’s population) live in these countries.


Jim Sinclair’s Commentary

Sanctions make new friends and significant deals.

Russia Nears Completion Of Second "Holy Grail" Gas Deal With China
Submitted by Tyler Durden on 11/07/2014 18:29 -0500

Six months ago, something few had expected would take place in 2014, or even in the coming years, happened: under Western pressure and out of a desire to diversify away from an increasingly hostile European market, Russia signed the so-called "Holy Grail" gas deal with China, pivoting away from the west and toward with Beijing.

As part of the deal, the two nations reached a $400 billion agreement to construct the Power of Siberia pipeline, which will deliver 38 billion cubic meters (bcm) of gas to China. The compromise was a lower price than Gazprom would have otherwise hoped for, however in taking a cue right out of Amazon, "Russia would make up in volume what it lost in price." This eastern route will connect Russia’s Kovykta and Chaynda fields with China, where recoverable resources are estimated at about 3 trillion cubic meters.

And then today, with little fanfare, Russia’s president Putin – whose economy is said to be reeling as a result of a plunging currency, paradoxically something Japan would love to be able to achieve on such short notice – told the media ahead of his visit to the Asia Pacific Economic Conference on November 9-11, that Moscow and Beijing have agreed many of the aspects of a second gas pipeline to China, the so-called western route, or as some already are calling it, the "second holy grail."

“We have reached an understanding in principle concerning the opening of the western route,” Putin said. "We have already agreed on many technical and commercial aspects of this project laying a good basis for reaching final arrangements,” the Russian President added.

As RT reports, the opening of the western route, the Altai, would link Western China and Russia and supply an additional 30 bcm of gas, nearly doubling the gas deal reached in May.

Once the Altai route is completed, China will become Russia’s biggest gas customer, able to receive up to 68 bcm of gas annually, surpassing the 40 bcm Russia supplies Germany each year.


Posted at 2:09 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Sanctions blowback.

China, Russia boost military cooperation: Officials
November 6, 2014, 7:30 am

Ahead of a meeting between Chinese President Xi Jinping and his Russian counterpart Vladimir Putin this week, senior Chinese and Russian military officials said on Wednesday that the two countries have reached agreements on a slew of important military cooperation projects during the 17th round of strategic consultation.

“Many cooperation projects in critical areas were agreed upon during the current round of consultation,” said Valery Gerasimov, Chief of the General Staff of the Russian Armed Forces without revealing details.

Gerasimov met Wang Guanzhong, Deputy Chief of the General Staff of the Chinese People’s Liberation Army (PLA) on Wednesday.

The two sides discussed “the current international and regional security situations, regional issues as well as the relationship between the two militaries”, said China’s state agency Xinhua.

Gerasimov said these projects could help enhance mutual trust and between the two militaries as military ties between Russia and China are a crucial part of their “strategic cooperation”.

Russian and Chinese Presidents Vladimir Putin and Xi Jinping will hold bilateral talks on the sidelines of the APEC Leaders Summit which will be held in Beijing from Nov. 7-11. This will be the 5th Xi-Putin meeting in 2014.

The two allies also plan to hold joint celebrations next year for the 70th anniversary of the end of World War II.

Meanwhile, Russian President Vladimir Putin said Wednesday Moscow has secured $7.7 billion in arms contracts with global clients this year, dashing reports that Western sanctions have hit Russia’s arms exports.


Job Cuts Surge 68%, Most In 3 Years; Worst October Since 2009
by Tyler Durden on 11/06/2014 08:12 -0500

Maybe this explains the election results? Challenger reports US companies laid off over 51,000 people in October, the most since May (and 2nd most since Feb 2013). This is a 68% surge MoM (and 11.9% rise YoY) – the biggest monthly rise since September 2011. Retail, Computer, and Pharma industries saw the biggest layoffs. Hiring also collapsed from the record 567,705 exuberance in September to just 147,935 in October. This was the worst October for layoffs since 2009.

Worst rise in layoffs in 3 years…


and worst October since 2009…



The oxymoron of the labor force when labor means not working: 92 million Americans are not in the labor force with 12 million of those being added only in the last 4 years.
Posted by mybudget360 in economy, not in labor force, unemployment

This week we will be getting the employment numbers.  The unemployment rate is expected to stay steady or even drop which is comical given that we have 92 million Americans not working today and another 19 million that are fully unemployed.  Those not in the labor force continues to grow beyond the basic changes in demographics.  This topic rarely receives any coverage since those not working largely have no funds to back lobbying groups or to put ads out in the media.  Yet we can see this dissatisfaction when Americans are asked about their views on the economy.  The majority think the economy is doing poorly and this is expected given the underlying numbers.  You have young Americans going to college and many are coming out to low wage jobs and hefty student loans.  In the last 4 years alone we have added 12 million Americans to the not in the labor force category.  This measure is used to calculate the unemployment rate and given this group is not factored in, the unemployment rate looks much better than it truly is.  The oxymoron that we have is we have a labor force that is largely not doing labor.

Labor force not working 

The biggest startling fact most Americans are unaware of is that one out of three Americans support the other two-thirds of the nation.  First, you have the massive 92 million not in the labor force.  Another 19 million are labeled as unemployed.  Then you have over 32 million working in government jobs.  When we look at the actual private sector workforce, we then begin to see that our employment numbers are not as great as many would like you to believe.


Dollar Retreats After US Jobs Data
Alliance News 
Friday November 07, 2014 3:34 AM

BRUSSELS ( Alliance News ) – The US jobs data for October has been released at 8:30 am ET Friday . The greenback eased from its early highs against its major counterparts after the data.

The greenback was trading at 115.08 against the yen, 0.9708 against the franc, 1.2399 against the euro and 1.5820 against the pound around 8:31 am ET .


Why There Is No Wage Growth: America Will Soon Have More Waiters And Bartenders Than Manufacturing Workers
Submitted by Tyler Durden on 11/07/2014 09:08 -0500

While the headline jobs print was a modest kneejerk disappointment at least until it is appropriately spun in some sort of "goldilocks" frame, where the October jobs report was a true disappointment, was in the report of average hourly earnings: rising at just 0.1% for the month and 2.0% Y/Y, it missed expectations across both metrics. As a reminder, even Janet Yellen has observed that with the unemployment rate ridiculously low and thus meaningless to shape policy, the key thing the Fed head is watching is any changes in wages to determine where benign wage inflation is headed. Well, as the chart below shows, it is headed exactly nowhere, because 6 years after the recovery, wages simply refuse to rise.


And while there are many reason to explain this phenomenon, most of which have been covered here in the past, here is the easiest explanation of why wages have, and will continue to disappoint to the downside. From the report:

Food services and drinking places added 42,000 jobs in October, compared  with an average gain of 26,000 jobs per month over the prior 12 months.

Employment in professional and business services continued to trend up over  the month (+37,000).  Over the prior 12 months, job gains averaged 56,000 per  month. In October, employment continued to trend up in temporary help services  (+15,000).

In brief: well-paying jobs lower, low-paying jobs much higher.

And to visualize it: in October the US economy added the most waiters and bartenders in over a year. In fact at 42K, one in every five jobs "created" in the US economy went to a bartender, or a waiter.


Posted at 1:13 PM (CST) by & filed under Jim's Mailbox.

Jim Sinclair’s Commentary

The real facts of the Swiss referendum concerning gold.

Dear Jim,

I hope you are keeping well.

No, they are wrong.

If there is a majority Yes vote for the country as a whole the Initiative, as it stands, becomes part of the constitution on Nov 30. There is one additional condition, there has to be a majority of cantons also. This means that out of 26 cantons, the popular vote must be yes in 14 for the Initiative to pass.

No further ratification is required. The government or parliament cannot change it. Only another public referendum can.  This is real people power and proper democracy which does not exist in any other country as far as I know.

Kindest regards,

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


When the stock market goes higher on prospects of continued QE, AND the stock market goes higher on discontinuation of QE… it should set off red flags in your investment decisions.  Namely, STAY AWAY!

Something is not Kosher.

Then to top it off, the Street (who in the past, hung on his every word) ignores former Fed Chairman Greenspan’s warning to get into gold, stat!  Another BIG red flag.

Be smart.
Be safe.
Be in gold.

These are not times for hubris!

CIGA Wolfgang

Post-Election Reality Check

Gold prices end sharply lower as the U.S. dollar soars. U.S. stocks end mostly higher on a rebound in oil prices. Gold last traded at $1,145 an ounce. Silver at $15.44 an ounce.

The mid-term elections are behind us and it appears the political landscape in America is changing.

But how much is really changed?

Historically, political developments have had less impact on the investment world and financial markets than economic developments and fiscal and monetary policy. The key going forward will be the future of those factors.

As expected, last week the Federal Reserve announced it would be ending its open market bond purchases known as Quantitative Easing (QE). The bond-buying campaign helped to fuel one of the largest stock market bubbles in American history.

The impact on the rest of the economy is much harder to assess. Some economists dismiss the purchases as inconsequential. And some say the Fed has exacerbated economic inequalities by helping to lift financial markets while the rest of the economy languishes.

One critic of the impact of QE is former Fed Chairman Alan Greenspan. Greenspan said, "I don’t think it’s possible for the Fed to end its easy-money policies in a trouble-free manner."

Greenspan also said gold is a good place to put money these days given its value as a currency outside of the policies conducted by governments.

Wall Street is ignoring his warning evidently as, despite many worrying signs, the stock market has once again hit record heights.


This is a "Dog bites man" story, not a "Man bites dog" one.

The word "Republicans" should be replaced by the word "Politicians."

Since when have politicians, of EITHER party done what their constituency have voted them in for?

A nation fools, spineless fools is what we have become.  We are following the script of HG Wells’ "Time Machine."  Watch it and see the parallels.  (Warlocks sound the siren, and the populace walks obediently to their death).

With all due respect to my fellow citizens who have been mislead.

CIGA Wolfgang Rech

Victorious Republicans face familiar dilemma
By Richard Cowan and David Lawder

WASHINGTON (Reuters) – Victorious Republicans appeared at odds on Wednesday over how to capitalize on their new control of the U.S. Congress. Some lawmakers were eager to use their new muscle to step up attacks on President Barack Obama, while others talked hopefully of compromises that could lead to rare bipartisan legislation.

The strongly diverging views were an early indicator of the task ahead for House of Representatives Speaker John Boehner and likely new Senate leader Mitch McConnell, who will have to find a way of reconciling moderates and conservatives in their caucuses to show Americans that Republicans can govern and not just obstruct Obama’s legislative agenda.



Hilarious. Saturday Night Live comedy hour has gone 24 hours nonstop in the Main Street Media. No need to wait for Saturday anymore… just turn on the news at any time.

‘On Wednesday, Kseniya Yudaeva, deputy chairwoman of Russia’s central bank, promised to sell the country’s gold to fund imports "if it becomes necessary".’

Really!  What next?

-Announcement that they will sell all their armaments "if it becomes necessary"?

-Announcement that they will withdraw from the Ukraine "if it becomes necessary"?

-Announcement that they will give up drinking vodka "if it becomes necessary".

Yeah, right!

I’m insulted that the press could issue such a mindless and nonsensical release.   Even if true, they (the press) would be playing directly into Russia’s hands.

Think about this for a moment:  Russia accumulated gold at higher prices over the past few years; and they have accumulated US Dollar reserves when the Dollar was cheaper during that same period. 

So what would they do?  Sell gold at a loss?  Or sell US Dollars (which they want to get rid of anyway with the advent of the de-dollarization agenda) at a profit, since it has climbed significantly in the past few months?

What would you do? Sell gold at a loss or Dollars at a profit?

For that matter, I don’t believe they are under pressure to sell anything.

Any school kid knows the answer, so I can’t believe the author would subscribe to his own work. It can only be a planted article by the Western powers that be.

The following excerpt is most likely on the wish list of every Chinaman, Russian, and Indian!  What better way to quietly accumulate the world’s gold supplies at the cheapest price possible, by shaking out the weak hands with such press releases.  A shrewd move indeed!

"Unfortunately for the government the announcement could not have been worse timed. Gold is getting crushed. It hit $1,140 per ounce on Wednesday, down by about 2.3%. At one point it got as low as $1,137, its lowest level since April 2010. Selling into a falling market would fail Investing 101."

Hey, but what do I know?

One other point.  In the article the following comment was posed:

"Six months is the critical level to insure the Russian population against the possibility of severe hardship in case the crisis deepens and they are deprived of foreign goods. (Russia imports a large amount of staples including butter, cheese and meat.)"

Butter and Cheese could bring one of the world’s superpowers to its knees?  Heaven help us all if that is the case.  Furthermore, let us not forget that Ukraine is the "breadbasket" of Europe.  Always has been.  I wouldn’t be surprised if Russia receives its products from them… not from Wisconsin or Vermont!

Remember people, this is NOT rocket science. What IS rocket science, is bending and manipulating facts and events to your own benefit, whether it is by Russia or by the USA.  All the ordinary man needs to do is… think!

CIGA Wolfgang Rech

Now We Know Why Russia Has Been Building Up Its Gold Reserves
By Tomas Hirst

Since September 2012 Russia has been quietly building up its gold reserves, hitting 1,149.8 tonnes last month — it’s highest level since 1993.  In the process the country has overtaken both Switzerland and China on its way to amassing the sixth largest gold reserve pile in the world.

This was part of a sensible strategy to diversify its foreign exchange reserves (currently $439 billion in size), which were overwhelmingly held in dollars and euros. Despite the huge increase, gold still accounted for only 9.7% of the country’s total reserves as at the end of June — though recent spending by the central bank to defend the rouble is likely to have increased its share.