Posted at 5:45 PM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

When considering the fate of Puerto Rico’s bonds, you must consider the fate of the entire Muni market.

“Responding to whether or not Trump would bail out Puerto Rico as president of the United States…

“No I don’t believe they should, and I think frankly Puerto Rico is better if they don’t because they’ll cut the bonds, they’ll cut them way down there’s far too much debt. The problem with Puerto Rico is they are far, far too much in debt. Don’t forget, I’m the king of debt, I love debt”

As far as how he would suggest Puerto Rico solve its debt issue, The Donald, of course, has a solution for that.

“As a very successful person, I would buy companies, throw them into a chapter, bankrupt it, negotiate, I would do great deals. I didn’t use them for myself, I used them as a business person like others do. I know more about debt than practically anybody, I love debt. I also love reducing debt, and I know how to do it better than anybody. Puerto Rico has too much debt, so you can’t just restructure it. You have to use the laws, you have to cut the debt way down, and get back to business.”

The places to hide your wealth are becoming increasingly scarce.

· The Muni market could tank, not just on Puerto Rico, but on the state of all U.S. muni’s. States are essentially bankrupt.

· The Treasury Bond market is sitting at unprecedented highs, with nowhere to go but down.

· Equities are at all-time highs, with no justification whatsoever! increasing debt for buybacks are the only support as hedge funds begin fleeing.

· Hate to say this, but anyone with serious wealth, will have great difficulty obtaining gold and silver in large quantities. Once the market smells buyers of proportion, especially with the scarcity existing, the offers will pull immediately.

Hate to say this, but only the little guy still has the opportunity to “stack ‘em.”

CIGA Wolfgang Rech

Wolfgang,

This can be looked at from another angle.  Is this where the world is going? Toward a restructuring of debt where creditors get haircuts? Debt (and assets/retirement plans) of all sorts will get haircuts and everyone loses. Even if gold and silver don’t “go up” and just retain current purchasing power …you win by not losing!

Best,
Bill

“Don’t Forget, I’m The King Of Debt, I Love Debt” – Trump Chimes In On Puerto Rico

Submitted by Tyler Durden on 05/05/2016 – 10:40

In an interview with Wolf Blitzer, Donald Trump said that although he is the “king of debt”, and that he “loves debt”, he wouldn’t bail out Puerto Rico.

clip_image001

Responding to whether or not Trump would bail out Puerto Rico as president of the United States…

“No I don’t believe they should, and I think frankly Puerto Rico is better if they don’t because they’ll cut the bonds, they’ll cut them way down there’s far too much debt. The problem with Puerto Rico is they are far, far too much in debt. Don’t forget, I’m the king of debt, I love debt”

As far as how he would suggest Puerto Rico solve its debt issue, The Donald, of course, has a solution for that.

More…

Posted at 5:39 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Mr. Williams shares the following with us.

- First-Quarter 2016 Real Merchandise Trade Shortfall Was Deepest Since Third-Quarter 2007
- Narrowing of March 2016 Monthly Trade Deficit Reflected Weakening Demand for Consumer Goods
- First-Quarter Construction Spending Revised Sharply Lower
- Volatile Real Spending Remained in Non-Recovery, Ongoing Low-Level Stagnation
- Annual Retail Sales Revisions Were Relatively Small, but with Unusual Twists; Weaker Sales Seen with Better-Quality Data
- Downside Revisions Loom for GDP Detail

“No. 804: Trade Deficit, Construction Spending, Retail Sales and Other Revisions “
PDF: http://www.shadowstats.com

Posted at 10:08 PM (CST) by & filed under In The News.

Bill Holter’s Commentary

Mr. Druckenmiller is brilliant, but Bloomberg runs this article? Sacrilege!

Druckenmiller Loads Up on Gold, Saying Bull Market Exhausted
Katherine Burton

Stan Druckenmiller, the billionaire investor with one of the best long-term track records in money management, said the bull market in stocks has “exhausted itself” and that gold is his largest currency allocation.

Druckenmiller, speaking at the Sohn Investment Conference in New York on Wednesday, said while he’s been critical of Federal Reserve policy for the last three years he expected at that time it would lead to higher asset prices.

“I now feel the weight of the evidence has shifted the other way; higher valuations, three more years of unproductive corporate behavior, limits to further easing and excessive borrowing from the future suggest that the bull market is exhausting itself,” said Druckenmiller, who averaged annual returns of 30 percent from 1986 through 2010 at his Duquesne Capital Management.

As bankers experiment with “the absurd notion of negative interest rates,” Druckenmiller said, he’s wagering on gold. “Some regard it as a metal, we regard it as a currency and it remains our largest currency allocation,” he said, without naming the metal.

Metal Gains

Gold futures climbed 20 percent this year in the best start since 2006, helped by speculation that the U.S. Federal Reserve will be slow to tighten monetary policy amid global risks to growth and as lending rates in the euro area and Japan fell below zero.

On the Fed, Druckenmiller said the central bank has borrowed more “from future consumption than ever before.”

More…

 

Bill Holter’s Commentary

…and they had better hope the financial markets STAY rigged!

Over Half of Americans Now Believe the Voting System Is Rigged
Submitted by Tyler Durden on 05/04/2016 12:02 -0400

Submitted by AnonHQ via TheAntiMedia.org,

This American primary season has been unlike any other election in recent memory, if not United States history. Between the Donald Trump phenomenon, Sanders supporters claiming voter fraud after what seems like every single state election and candidates in rivaling parties both publicly stating that the system is rigged, one thing is clear, there is something very strange happening.

We all understand that on some level, of course the system is rigged to a degree. I mean we have all known that Hillary Clinton was going to be ‘the next President’ for over six years now. It is no surprise she is running for election in 2016, we have known this all along. This is the illusion of having a choice in American politics. The reality is that you are presented with a choice to make, the illusion though, is that your choices are narrowed down by a rigged system.

People forget that in 2012 Donald Trump was in the mix to become the next President, however he was told he could not participate in the Republican debates. The same exact thing happened to Rand Paul this year. He did not want to stop campaigning for President, the GOP literally told him they would no longer allow him on the debate stage. Like it or not, on some level the entire system is rigged to a degree and apparently the majority of American citizens now agree. According a new study conducted by Reuters News, “more than half of American voters believe the U.S. system is rigged.”

The study was conducted via an online poll between the dates of April 21 – 26 and consisted of approximately 2,215 people – 1,582 of which were Americans. According to the results, when presented with the question “Agree or disagree: The current system of presidential primaries and caucuses are ‘rigged’ against some candidates?” 47.5% of people agreed. 23.6% disagreed with the statement and 28.9% were undecided or did not have an opinion for or against. Overall 51% of perspective American voters in the upcoming election believe that the system as a whole is rigged in general.

The study also went on to reveal that 71% or respondents said they would favor a direct vote for individual candidates on a single day rather than the current prolonged state delegate based system we see today. People point to the fact that when the primary season first began the Republicans had a field of 17 candidates. Today we are still in the process, some states haven’t even had a vote and yet the field of candidates available to vote for has shrunk down 3 – hardly fair or equal for every state.

More…

Posted at 7:07 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

We have had a run in gold/silver and the shares far greater than nearly anyone had anticipated. And as you know, the buildup of “commercial shorts” particularly in silver are at all-time highs. By rights, if history is any guide we should experience a sharp pullback. This has been the case for several weeks, yet the “pullbacks” have been shallow and short in duration. I will still say “this is the rally you never sell” no matter what the pullback looks like because if you are “out” at the wrong time …you may be out forever.

Click here to read the full article…

Posted at 6:39 PM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

This is very bullish for gold going forward.

Kneejerk reaction by weakening of Euro.

In reality, the less currencies for income to hide, the greater the value of gold as a proxy. (Actually, currencies are a proxy for gold!)

CIGA Wolfgang Rech

The War On Paper Currency Officially Begins: ECB Ends Production Of €500 Bill
Submitted by Tyler Durden on 05/04/2016 – 12:42

Following the denial in February that this action is in any way about reducing cash, Mario Draghi has made his decision: ECB ENDS PRODUCTION AND ISSUANCE OF €500 BANKNOTE. And just like that the second highest denominated European bank note in circulation is dead, driving everyone into the CHF1000 Bill, and implicitly weakening the euro.

That’s not all: as Bank of America pointed out, abolishing the €500 note may even end up even weakening the European currency:

More…

Posted at 11:28 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Russia is now getting up close and personal with USA warships on a regular basis. One slip and another world war is predictable.

30 feet at 500 mph and more can be a tad risky. Russia does not care.

We give way to the world in a treaty with Iran followed by Iran telling the USA and NATO to take long walk off a short pier. If you like these approaches to foreign policy you know who to vote for as President.

U.S., NATO Look to Combat an Aggressive Russia

STUTTGART, Germany — The U.S. and its NATO allies are dusting off their old playbooks this week during a trip abroad by Defense Secretary Ash Carter, citing the myriad threats facing Europe as the impetus for the Pentagon’s pushing the Cold War alliance back onto a continental war footing.

The specter of Russia to the east will hang over a Tuesday ceremony in which Carter will oversee the change of command for U.S. European Command, based here in Germany. Army Gen. Curtis Scaparrotti will take over the post from Air Force Gen. Philip Breedlove, moving into a role that traditionally also makes him the supreme allied commander of NATO’s European forces.

“This is more than just a change-of-command ceremony,” said a senior defense official, who like others spoke on the condition of anonymity about U.S. policy for Europe and goals for Carter’s trip. “[Carter] will talk about Europe and the challenges facing EUCOM. … That means steps that need to be taken to deter Russian aggression.”

Scaparrotti, a counterinsurgency veteran of the war in Afghanistan, spent his latest tour leading U.S. forces supporting the South Korean military against the threat of its northern neighbor.

The Pentagon sees this change as marking a transition away from the commander serving as the principal organizer of an alliance – responsible for maintaining America’s strong ties with European allies and coordinating NATO military action – to one charged to a greater extent with preparing for and preventing war.

More…

Posted at 10:38 PM (CST) by & filed under General Editorial.

Dear CIGAs,

I have been exploring and analyzing the present and proposed litigation of Gold and Silver Precious Metals (PMs). I have reached some conclusions and want to share my views and offer you an important opportunity to join with me to address this problem in a never before used litigation approach.

Are you a PM share investor? … A PM producer? … A company whose business was injured as a result of the manipulation and suppression of the price of Gold or Silver? If so, please email me as soon as possible, and provide contact information for me to confer with you. If your entity meets the above criteria, I will speak with you personally as soon as possible.

I have investigated Class Action Suits, and other conventional causes of action. I have not been satisfied by my findings. We not only need a cause of action, we need a prevailing case. We need a winning plan of action, not just another law suit on top of the heap of other emerging law suits.

After analyzing, investigating and brain storming with various legal counsel, a Class Action Suit doesn’t seem to be the best strategy or tactic for recovering from the market rigging of PMs. It seems apparent that Class Action Suits have too many drawbacks. After careful research, I believe Class Action Suits for redress of PM manipulation will fail due to many of the drawbacks.

Some of the drawbacks are:

  1. Even if successful, the classes may be so large that very little is ultimately returned to the plaintiffs in a settlement.
  2. Class Actions are long, protracted litigation and assets of the defendants may evaporate long before settlement. Class action suits can take a decade to resolve.
  3. Many Class Actions are framed inaccurately regarding who is eligible to be a member of the Class.
  4. The definition of eligibility for Class standing may be too broad and encompass too many plaintiffs.
  5. Many Class actions initially fail in Summary Judgment.
  6. Class Action complaints may be ill-presented and not truly representative of all members of the Class since often some, but not all issues apply to the entire class. This is too cumbersome.
  7. The costs of a Class Action are prohibitively high.
  8. Not all Class Action witnesses represent all members of the Class, or all issues.  Often, witnesses are too academic rather than factual (evidentiary) or probative of actual damages.

The above are just some of the drawbacks to Class Action Suits. We do not choose a Class Action Suit for the above reasons. We plan to win so a winning structure to litigation is fundamentally important to a positive and successful outcome.

I believe after careful consideration, we have found the structure and method of winning in litigation against market manipulators. If you are an executive, decision-making officer of a PM producer, or in the process of becoming a PM producer, or an otherwise already operating entity in the production of PMs, and have damages due to the rigged manipulation of the PMs markets, please email me. I welcome your email and will reach out to you. Your entity can be operating anywhere in the world. I am not proposing a Class Action Suit, but we need each other for our mutual benefit in this litigation. I am happy to reach out to parties who have been financially injured and may be interested in participating with us in this dynamic, never before applied litigation strategy.

No money is being asked of you. We are not soliciting funds to finance litigation, and we will not solicit litigation financing from you during the litigation process. This is a contingent fee litigation, which means legal counsel and expenses for litigation are paid, and only paid when we win.

A few moments of time can determine our mutual needs, desires and benefits. Due to the manipulation which suppressed PM prices, we producers and those becoming producers have been significantly damaged. We need to overcome the apathy this suppression of the PM price has created in the producer’s industry. We need to overcome the inertia these suppressed PM prices have created and move forward to recover our damages. We need to act as expeditiously as possible.

Once interested parties are on board, we will arrange a conference call with legal counsel. Our legal counsel will present the revolutionary framework for our successful litigation against those who have manipulated the price of PMs and financially harmed us due to their actions.

For our JSMineset readers, I request that you urge the production entities you are involved with to discuss this important opportunity with me. Together we can make the difference. Speak with the decision makers of the companies you are invested with and urge them to contact me if I have not already reached out to them. In these matters, bigger is better. Your influence can help and support this cause, and will make the difference. Urge the companies you are invested with to send an email to me and provide a phone number for contact. Do you want all of your losses and damages back? I do! Wake up your company and ask them to have their decision-making representative email me so we can arrange a conference. Because neither you nor your company will recover your damages and losses by just hoping, we must act. Time is short for this window of opportunity.  You have the power. Talk with your companies and take action by asking them to email me.

This opportunity will not last long. The window of opportunity will close quickly. Billions of dollars are a potential recovery in this never before applied legal framework. Your PM companies need to join us. Please urge your PM company to email me at TRECEO108@gmail.com. We are in this together, and we are in it to win it.

Best Regards,
Jim Sinclair

Posted at 9:16 PM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

Can someone enlighten me, please.

Euro traded up, with 1.16 handle overnight Yen traded up, with 105 handle overnight. Although the Aussie Dollar got hit, it didn’t affect those currencies.

Gold traded again over $1,300. DXY broke 93 support and traded at 92.40. This is all VERY bullish for gold and silver.

Then NY opens, and everything gets slammed the opposite way. Hell, even the Dow was down 200 points, with implications of money potentially moving out of stocks and into gold.

We heard yesterday how the Fed is warning Germany and the Far East to strengthen their currencies, as the strong Dollar is hurting the US, so I presume it’s not Fed intervention.

US Treasury Gives Explicit Warning To China, Germany And Japan Not To Devalue Their Currencies
Submitted by Tyler Durden on 04/29/2016 16:24 -0400

While the US Treasury’s semi-annual report on the foreign-exchange policies of major U.S. trading partners has traditionally been, pardon the pun, a paper tiger, as the US has not named a single country as a currency manipulator since it did so to China in 1994, and it didn’t go so far as to blame any country as an outright manipulator in the just released April edition, there was a new addition to the latest report.

In an inaugural “monitoring list”, the US put five economies including China, Japan and Germany (as well as South Korea and Taiwan) on a new currency watch list, saying that their foreign-exchange practices bear close monitoring to gauge if they provide an unfair trade advantage over America.

This is what it said:

In determining the appropriate factors to assess these criteria, Treasury took a thorough approach, analyzing data spanning 15 years across dozens of economies, including all economies that have had a trade surplus with the United States during that period, and which in the aggregate represent about 80 percent of global GDP. The thresholds are relatively robust in that reasonable changes to the thresholds do not materially change the Report’s conclusions. Treasury will also continue to review the factors it uses to assess these criteria to ensure that the new reporting and monitoring tools provided under the Act meet the objective of indicating where unfair currency practices may be emerging. 

Pursuant to the Act, Treasury finds that no economy currently satisfies all three criteria, however, five major trading partners of the United States met two of the three criteria for enhanced analysis. Treasury is creating a new “Monitoring List” that includes these economies: China, Japan, Korea, Taiwan, and Germany. China, Japan, Germany, and Korea are identified as a result of a material current account surplus combined with a significant bilateral trade surplus with the United States. Taiwan is identified as a result of its material current account surplus and its persistent, one-sided intervention in foreign exchange markets. Treasury will closely monitor and assess the economic trends and foreign exchange policies of these economies.

More…

Even the headlines point to higher gold:

Puerto Rico misses payment as debt crisis escalates

Euro leaps above $1.16 for first time since August; dollar dives against yen

ECB deposit rate won’t hit ‘absurdly low’ levels

Stock Futures Slide on Global Economy Health Worries

Treasury 10-Year Yields Tumble on Global Economic Data: Chart

A very confused,
CIGA Wolfgang Rech

Dear Wolfgang,

That is what the manipulation of fixes are set up for. They have such a conviction of being bullet proof they hide in plain sight. See my comments tonight in Mineset.

Respectfully,
Jim

 

Jim,

The flyovers by Russia of the American military in the Baltics and South China Seas and now Iran is telling us to stay out of the Persian Gulf. I don’t mind touting that I have been making the correct assessment of what the countries in the Middle East, China Sea and Baltics have been trying to do. They are telling the US to get out in no uncertain terms.

CIGA Larry

Iranian Supreme Leader Warns U.S.: Flee the Persian Gulf
BY: Adam Kredo
May 2, 2016 12:23 pm

Iranian Supreme Leader Ali Khamenei on Monday warned the United States against keeping a military presence in the Persian Gulf and vowed that the Islamic Republic will continue to carry out a range of war drills in the area, despite warnings, according to recent comments.

Khamenei blasted the U.S. military presence in the Persian Gulf in wide-ranging remarks that ordered America to return its forces “back to the Bay of Pigs.”

Khamanei also said that Iran has the military know-how to eradicate American forces from the region.

“Today, the enemies utter words bigger than their mouths; for instance they develop plans to bring to a halt Iran’s military wargames in the Persian Gulf, what a foolish remark,” Khamenei was quoted as saying on Monday, as Iran holds a series of war drills.

More…