Posted at 2:33 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

A vote for Bernie means a lot of free stuff!

Bernie Pulls Ahead of Hillary in the Presidential Race
Posted: 22 Jan 2016 03:46 PM PST

This cartoon is a collection of clichés, and it marks the first time I’ve drawn Bernie Sanders. I enjoy Bernie and I hope he can keep up the pace. Both Bernie and Hillary and wonderful cartoon characters, as are Donald Trump and Ted Cruz. The pundits have it all wrong, this year Americans are voting for the best cartoon candidates.

EMC, VMware, IBM, etc.: Here Come 333,000 Layoffs in Tech, Opines Global Equities
January 22, 2016, 3:36 P.M. ET
By Tiernan Ray

Global Equities Research’s Trip Chowdhry, a one-man shop of investment observations, today opines that layoffs in the mainstream of tech companies are primed to become much worse than expected: He predicts there will be at least 333,000 layoffs in the next twelve months, in part because of developments such as cloud computing.

Chowdhry takes as his cue an article this morning by Barb Darrow over at Fortune, which claims VMware (VMW) is going to lay off 900 people, or 5% of its workforce, as part of its buyout by Dell along with VMware majority holder EMC (EMC). Darrow cites multiple unnamed sources regarding the layoffs.

That’s nothing, says Chowdhry, asserting “the above news item is very likely accurate … but over the 2016, we could see more layoffs.”

Chowdhry’s philosophical justification for such a dour view is in large part that the shift to cloud computing eliminates a lot of IT talent that has been classically devoted to “back-end” operations of IT.

He opines that 70% of the work done in IT is for such back-end things, versus the 30% that is focused on, presumably, more rewarding “domain-specific” tasks.

Chowdhry thinks now with the cloud, because infrastructure is outsourced to Amazon.com(AMZN) and other Web services, the equation flips, and the talent that’s in demand will be domain-are experts, while traditional back-end IT staff goes away. As he summarizes,

70% of the current work which requires Back Expertise, Products and Services is going to get reduced to 30%, and will result in massive 333,000 layoffs in the tech sector Sadly, the new jobs in Functional/Customer Domain will not be immediately filled, as those skills are scarce and the educational system is behind the curve.

More…

Posted at 3:00 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

What a tangled web the global geopolitical situation has become.  Geopolitics and finance have always been interrelated but recently much more so.  As many readers know, I have speculated we would be hit over the head with a “truth bomb” from the East and most likely from Mr. Putin himself.  Just this week Britain has alleged Mr. Putin personally ordered a “hit” on an ex KGB agent for calling him a pedophile  http://nypost.com/2016/01/21/murdered-ex-spy-accused-putin-of-pedophilia/.  Another story came out that Turkey shot down a NATO helicopter which made no press coverage at all in the West.  Also, Victoria Nuland recently travelled to Russia and was refused an audience by Mr. Putin.  This, after John Kerry had a meeting where he went into it saying “Assad must go” and came out saying Mr. Assad can stay …  Why all of this now?  I would simply say this reeks of desperation and also a VERY dangerous strategy to attack Mr. Putin personally.  I say “dangerous” because it raises the likelihood of a response from him.  Can you imagine the outrage were Russia to accuse president Obama or the Prime Minister Cameron of Britain for ordering the murder of someone who called them a pedophile?

Before going any further, I believe nearly ALL of what we are seeing is centered by and on the “petrodollar”.  Will it survive or be replaced?  In my opinion it is no longer “if”, but “when” and by “what” will it be replaced with?  Just over the last two weeks we have seen three very important yet interrelated events.  First, the sanctions against Iran in place over the last 35 years were lifted.  Along with this comes the ability for Iran to sell oil and they will now have access to up to $150 billion worth of assets and accounts previously frozen as reported by many credible non-government sources.

The day after, we saw 10 U.S. captured sailors on their knees as they were said to have “strayed” into Iranian water.  The official U.S. account has changed at least twice.  We heard “mechanical failure” at first, this is unlikely as there were reportedly two separate vessels.  If one had mechanical problems, the other could have tied off and either towed it or held it steady until help could arrive.  Then the story changed to “navigational” problems.  This one I believe …but not the official story they “strayed” into Iranian water.  Again, if it was just one boat, maybe their navigation system malfunctioned …at the same time their communications failed …MAYBE?  But both boats …at the same time lost their comm and navigation systems?  Probably a better chance one of these sailors winning the Powerball lottery two weeks in a row!  Speculation on my part, I believe the electronics were somehow hacked or blocked just as happened with the Donald Cook in the Black Sea in late 2014.

Just a couple of days ago, President Xi of China met with Iranian leaders one day and then the Saudis the following day.  We can only speculate what was discussed but surely oil was the centerpiece.  Naturally China wants to make and diversify oil supply deals from them both.  We have no proof but I believe it is a very good bet President Xi told the Saudis they would be expected to accept yuan for settlement instead of dollars.  There is no denying, the Chinese have done everything in their power to prepare for the dollar being dumped as the world’s reserve currency.  You can argue about timing, you cannot argue about “intent” as China/Russia have set up non Western clearing facilities similar to SWIFT but without any Western interference, trade deals, currency hubs, trading banks, and even gold and oil exchanges where the dollar will not be welcome.

This is not tough to tie all of this together.  I ask you this, what would the world look like the day following a “truth bomb” dropped by Mr. Putin and the Chinese.  Would Americans even notice if he documented several false flags or frauds embedded in U.S. finance such as outright monetization of U.S Treasuries?  No, most certainly not.  Americans would however notice if financial markets collapsed or were shut down.  Russia and China know full well the situation in the West.  It is a bankruptcy waiting to happen as everything is fractional reserve and running on maximum margin while the underlying system is shrinking and no longer supplying enough liquidity.  The way I see it, the stage is truly set for a financial attack on anything and everything American.  Is it implausible for the Saudis to announce they will sell oil in yuan to China?  Or Iran to withdraw their funds from U.S. institutions and then bid for gold with these funds?  If the East does in fact have jamming or hacking capability of Western technology, is it far fetched for them to show it very publicly in one or several situations?  How would the “bookies” react if they saw a prize fighter enter one of the later rounds with his hands tied behind his back?

You can laugh at the above speculation if you choose but it is all quite plausible and actually probable if you look at where things are and what posturing has already been done leading up to this.  Western markets, ALL markets are a fraud.  Our Treasury market is one where the biggest buyer is “our self” …the Fed and the ESF.  We have already seen $1 trillion of foreign reserves offloaded with no effect on yield nor the dollar itself and NO ACCOUNTING ANYWHERE as to “who” bought these offloaded central bank reserves.  Accounting fraud and no rule of law here, nothing to see …please move along!  You can laugh if you want and say Saudi Arabia will never move toward the East …  Saudi Arabia is now in very dire straits financially, who do you think they will side with when Western markets melt down?  Do you really believe they will go down trying to support our dollar?

The stage has already been set.  The East knows the West has bankrupted.  They know we have no gold left because they have it!  They can see the finances of the various cities, states and federal government.  They know the situation in derivatives is one giant mountain of dynamite waiting for a spark.  They know our rule of law is gone and bail ins of depositor funds is next.  We are monetizing their sales of Treasury securities.  “We” are fooling no one except ourselves.  And by “ourselves” I am talking about the vast majority of the population who have grown to rely on the government for everything.  Everyone knows we are broke, yet ask anyone and the odds highly favor you will hear “the government will never let it happen”.  Even if you are silly enough to believe this you must ask yourself, what are the ramifications when markets become “make believe”?

Standing watch,

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

Posted at 2:28 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Are you prepared?

East Coast blizzard kills five drivers in North Carolina, Tennessee as storm barrels toward New York City
BY Meg Wagner
Updated: Friday, January 22, 2016, 1:27 PM

The blizzard expected to wallop the mid-Atlantic this weekend killed at least five people and created treacherous driving conditions across the South Friday as it marched up the East Coast toward New York City.

North Carolina Gov. Pat McCrory said four drivers have died since Wednesday in snow-related wrecks. A woman was killed in Eastern Tennessee Friday when her car slid off an icy road and plummeted down a 300-foot embankment in Butler, officials said. Her husband, in the passenger seat, survived the crash.

The wintry storm dumped snow and freezing rain on the South Friday morning, creating dangerous diving conditions across the region.

North Carolina, which closed major interstates Friday, said troopers have responded to 571 wrecks and more than 800 calls for service since midnight.

Throngs of car wrecks were reported across Virginia, too: State Police Spokeswoman Corinne Geller said troopers responded to 68 crashes statewide and 174 disabled vehicles Friday. No fatalities have been reported.

More…

 

#SNOWMAGGEDON2016: EMPTY STORE SHELVES AS PANICKED SHOPPERS RANSACK GROCERY STORES
“If you don’t have your food & groceries yet I feel sorry for you”
Adan Salazar | Infowars.com – January 21, 2016

Concerned shoppers worried about spending days snowed indoors have hit grocery stores hard leaving empty shelves in their wake, hours before a massive snowstorm is due for the northeastern United States.

A few inches of snow have already piled up in places like Washington DC causing havoc, but forecasters predict Winter Storm Jonas could be a “historic storm” that will bring 50 to 60mph winds and more than two feet of snow.

“We will have blizzard conditions expected. Now already blizzard watches in effect for DC and Baltimore. Gusts are expected for pretty much mid-Atlantic up to the northeast,” Weather.com reports. “Saturday is to be an all snow event up and down I-95, at least the northeastern branch of it.”

Multiple photos uploaded to social media show the aftermath of sporadic panic buys at various grocery stores, leaving empty milk and bread shelves.

More…

Posted at 1:15 AM (CST) by & filed under JSMineset Premium Content.

My Dearest Extended Family and Friends,

As you know, JSMineset has been a go to site for over 13 years when it comes to money/finance/precious metals and just plain sanity. I have personally funded this effort to the tune of more than I’d like to admit.  My recent partnership with Bill Holter has cemented over these past months as we seem to see the world through shared eyes.

After much discussion, Bill and I have decided to offer premium content available to visitors willing to pay a small monthly fee. JSMineset as it stands now will continue to be free for all.  Articles of current interest will continue to be posted and updated just as they have since the site’s inception.  The new premium content site will include these same articles (and significantly more) and will be posted along with extended commentary. Bill’s extraordinary work will be featured on the premium side, although he does plan to make two or three articles each month available to the public on JSMineset.

Another added premium feature and one I believe has been a long time coming will be recorded and posted discussions between Bill and myself.  Rather than talk about what we think is important, we will ask readers to send us their questions.  We will choose several questions of interest to the community for each session and hold an open table discussion.

As we move forward we plan to offer live podcasts with subscribers asking live questions.

Bill and I are currently planning a conference in Tampa and another in Boston with several other cities up for consideration.  As this comes online, we believe it only fair to offer discounted admission to these conferences for our subscribers. Pricing for subscriptions will be nominal as we believe no one should be priced out of the safety of knowledge. The benefits are twofold. JSMineset as it stands now will continue to be free for users, and those willing to subscribe will receive premium, up to the minute commentary not found anywhere else on the web.

Pre-registration information will be posted in the coming weeks as we approach our launch date. We are very excited about the new changes coming, and what it will mean for our readers!

Respectfully yours,
Jim Sinclair and Bill Holter

Posted at 6:46 PM (CST) by & filed under General Editorial.

Dear Extended Family and Friends,

First of all, thank you so much for your overwhelming and positive responses to my article “Be Prepared.” I would also like to take this opportunity to thank those of you who translated that article into other languages and reposted it for the benefit of others on behalf of JSMineset.

Due to your responses, requests and questions, I plan to elaborate on my previous article. Due to the volume, it is not possible for me to write individual replies to the huge number of emails. Your questions are important and the goal of writing about preparedness is to help spread the word so that we can take some prudent actions now, which may help us and our loved ones in the future.

Not all emergencies are end of the world scenarios. Just in the past few days people in Florida died and others were injured due to a weather phenomenon. Thousands were still without power yesterday in Southern Florida from weather, which wreaked havoc. We learned from Katrina that we sometimes need to be prepared to help ourselves. A government isn’t always able to act, or act quickly enough to save lives in an emergency. In the USA, FEMA was designed to keep the government in order, and in control. So, dependence on FEMA for personal survival may not be the highest choice in an emergency. With hurricane Katrina we saw massive destruction of an area in the USA in a very short period of time. The Katrina death toll is still undetermined. Hurricane Katrina is just one example of a natural disaster. Over 15 million people were affected. Katrina impacted about 90,000 square miles.

Emergencies occur everywhere. JSMineset readers are world-wide. I use Katrina as an example, but look at the disruptions in Paris after last November’s tragic attacks.  Take a look at the cost of food in Canada.  Venezuela declared and economic emergency over their currency crisis in the past couple of days. Goldman Sachs calls the situation in Brazil an “outright economic depression” (Bloomberg).  Consider things which can influence the availability of resources wherever you live.  Plan to have food and water and consider other information in the original “Be Prepared” article.  The need for preparedness transcends national borders.

Many of your questions have to do with an emergency scenario where you must remain in your present location.   Many questions were also concerned with, what to look for in a desirable or optimal location.  Although JSMineset isn’t a survivalist site, I will share my ideas and concerns for your consideration.  These are things to consider. The information here are not suggestions or recommendations.  Each person and family’s needs are different.  No one but you can know and consider your needs; your exposure to risks; or how to use resources available for your highest good.

If you live in an area of known risk (floods, hurricanes, droughts, earthquakes, etc.) have an evacuation plan for you and your loved ones.  If you can afford a retreat property, consider moving there so you are out of harm’s way.  In the alternative, have an escape plan which is known by all loved ones without the need for communications systems.  In an emergency, communications systems may be jammed up or unreliable.  Having a plan in advance will not only save time, but reduce the stress and anxiety of trying to locate loved ones under difficult circumstances.  Having an escape plan can be important for every family regardless of where you live. All areas around the world have different positive qualities and various potential hazards.  Your escape may merely be from a densely populated area in a power grid failure or a transportation crisis.  A trucking strike or other transportation problem could prevent food and other goods from reaching stores in densely populated areas. Have a plan to evacuate if you can, and a plan to remain where you are if you can’t evacuate.  Then,  hope you never need it.

Most of the Katrina deaths were older Americans who couldn’t evacuate, or died from lack of assistance and essential services necessary to sustain life.  If you are trapped in a place where you cannot evacuate, or have no other place to go, stock food and supplies, including medicines.  Since power outages are often a problem, have a plan for some type of alternative heat and be familiar with all safety precautions for its use.  A kerosene heater can not only heat your living space, but provide a means of heating food.  Pure white kerosene can be stored and is shelf stable for 15 years.  A filled 5 gallon blue container could be a good investment.  Be completely familiar with the safety precautions for such a heater.  These are ideas to consider, not suggestions for purchases.  Explore your options.  Working smoke/Co2 detectors and fire extinguishers are vitally important for any living space.  Know how to refrigerate your medicines without electricity.  In the USA, FEMA focuses most of its resources on evacuation and containment, and not to individual emergency survival training.  You can probably obtain a brochure from your local Office of Emergency Management if you are in the USA.  Many of our readers are outside of the USA and it is difficult to address any individual needs in one article.  If you have medicine, like insulin which requires refrigeration, you can make a refrigerator for about $5.  $5 can save a life.  Any boy scout knows how to make a simple refrigerator, yet most government sponsored emergency services don’t teach these skills.  Know how to make a “Zeer Pot” and have what is needed available.  If you Google “Zeer Pot” you can learn how to do this.

If you and your family are fortunate enough to consider a retreat location (permanent or temporary), there are some things you may wish to consider.  Not everyone’s criteria will be the same… I would consider places with the following characteristics:

  • Not more than 20-30  minutes from a hospital with a trauma center.  Google “EMS golden hour”
  • Not in the fallout zone of a nuclear reactor.
  • Not near a military base.
  • Not in a highly, densely populated area.
  • Less than 1.5 hours from an International Airport.
  • Location with food sources not dependent on trucking or other shipping/transport.
  • Clean air and environment.
  • Sustainable water supply not dependent on irrigation or piping from other places for water.
  • Continental shelf  areas (research tech-tonic plates)  Places where the ground isn’t unstable.
  • Not in an areas of high risk (floods – particularly tidal wave or tsunami, wind – tornadoes, etc)
  • High potential for natural disasters (hurricanes, tsunami, earthquakes, severe droughts/wild fires. Etc.)
  • Proximity to International borders.
  • Natural resources including abundant wild life.
  • Employment opportunity or opportunity for home bases businesses.
  • Quality and availability of school systems.
  • Access to services and utilities and reasonably reliable power sources or alternative heat/power sources.
  • Near others with skill sets, and farms
  • Near like-minded people.

Based on your interest and requests, it is my intention to  share with you my thoughts on preparedness. I realize I have not addressed many of your questions from the original article. I intend to elaborate on your other areas of inquiry.  Since so much of preparedness relates to where you are, or where you could be in an emergency situation, this topic was elaborated on first.  I hope this article is responsive in terms of what you may wish to consider.

Be positive, but plan.  Take prudent and sensible steps and feel good about your preparations. Have hope and be optimistic, but “Be Prepared.”  As a global community we can share our ideas and thoughts which help us to support each other.  We can plan and prepare and get through whatever comes.  I write to you today to “Be Prepared.”  When your remaining questions are responded to in future writings, I will write to you about opportunities and prosperity.  Being prepared is a first and necessary step in that direction.

Respectfully yours,
Jim Sinclair

Posted at 4:28 PM (CST) by & filed under Q&A Sessions.

Dear CIGAs,

We are happy to announce the next upcoming Q&A session will be held in Tampa, Florida.

Date:

Saturday, February 20th, 2016 from 1pm-5pm.

Where:

Tampa Airport Marriott
Tampa International Airport
4200 George J. Bean Parkway
Tampa, FL 33607

Self parking is available for the event for $6.00 and valet is $12.00.

Cost:

A fee of $100.00US can be made in advance with any major credit card via the PayPal button on the webpage linked below (no PayPal account required). Please be sure to print out your transaction receipt as this will be your registration, confirmation and entry ticket to the meeting. No further confirmation will be sent.

Click here to purchase tickets…

If you prefer, you may alternatively pay $100.00US by cash, bank check or money order made payable to James Sinclair at the door. If you choose this option, you must pre-register via email with Anna Stoerzinger at [email protected]. Please be sure to note your name and number of seat(s) in your email. A confirmation will be sent to you within 5 business days to confirm this pre-registration.

We look forward to seeing you there!
Jim

Posted at 2:11 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

“Someone is lying?” is a humorous title because in today’s world this could pertain to nearly anything.  In this case I am speaking of the Dallas Fed and the banks they oversee.  As you know, Zerohedge wrote last Friday of the Dallas Fed.  They said the Fed had “issued guidance” to the banks they oversee to not report non performing energy loans and also to not push any of these entities into bankruptcy.  Yesterday the Dallas Fed responded with denial in a tweet.

Before continuing please read the response from Zerohedge http://www.zerohedge.com/news/2016-01-18/fed-responds-zero-hedge-here-are-some-follow-questions.

First, I am not a lawyer but ZH’s response sounds very much like a legal response and speaks to “discovery”.  This in itself is quite interesting as it is about the closest thing to “audit the Fed” as we have gotten to this point.  For the Dallas Fed to respond in a public tweet was in my opinion a VERY BAD idea.  I say this for several reasons, first, we now know for a fact the Fed reads what ZH posts.  Secondly and more importantly, since we now know this for fact …the Fed is now caught in a trap of their own making.  Since they read ZH posts, how can they ignore these latest questions.  LOGICAL questions I might add!  And, if they do respond …there will surely be MORE QUESTIONS!

As for the title, someone IS lying and it does not take a rocket scientist to tell “who” it is.  Either the Dallas Fed did not give their banks guidance to hide nonperforming loans or the banks decided to do this on their own.  If the banks did this on their own, then they and their auditors cooked the books and will face consequences.  How do we know this?  Oil has gone from $110 to under $30 and while banks have been lending into the energy patch.  It was recently estimated that around $250 billion in debt has been lent to companies who are now net cash flow negative and unprofitable with $30 oil, there WILL BE bankruptcies!  There is just no way that loan loss reserves are not needed as we are looking at a huge “bubble” inflated and now bursting.

Going one step further, we will certainly see some lawsuits against banks for not adding to loss reserves and properly accounting for the debacle.  Do you think in the court of law and during the true discovery process we won’t find out “why” these banks are hiding the truth?  What then?  If it turns out they ‘fess up and put the blame on orders from the Fed, what happens to Fed credibility?  On the other hand, if the banks do burden the blame …between the very real loan losses and judgments against them …will they even continue to be solvent or even exist?

I don’t want to make this piece too long but the point “someone is lying” is a very important one.  The Federal Reserve as I have recently written has lied themselves into a corner by citing BLS statistics as their reason for raising rates.  In the real world there was ZERO reason to tighten and plenty of reasons to ease which is why we heard on Friday about “negative interest rates”.  This is very similar to a young child who lied and must continue to lie to cover up past lies.  The lies become so big, so prevalent and so illogical that the little kid becomes “frenzied” when even he knows he is caught.  How long before the Fed becomes frenzied?

Standing watch in disbelief!

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

Posted at 2:47 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

“Peddling fiction” …this is what Mr. Obama said of anyone who believes and says the U.S. has a weak economy.  How ironic he should say this when he did, the State of the Union address?  I mean the timing could not have been any better!  In a week where oil prices hit a 14 year low, freight rates at over 30 year lows, equity, credit and FOREX markets all over the world crashing and derivatives blowing up.  How do we know derivatives are blowing up?  Simply because the Dallas Fed has given their banks permission not to mark energy debt to market.  In essence, the Fed has instructed their banks TO PEDDLE FICTION!

http://www.zerohedge.com/news/2016-01-16/exclusive-dallas-fed-quietly-suspends-energy-mark-market-tells-banks-not-force-shale

One must ask the question(s), how can the Fed really do this as accounting firms must sign off on any audits or official financial reports?   Do the accounting firms also get “special waivers” to lie or as our fearless leader says “peddle fiction”?  Also, how can the Fed really do this with a straight face?  Did they really believe the markets would not sniff this out?

http://www.zerohedge.com/news/2016-01-17/us-bank-counterparty-risk-soars-after-energy-mtm-debacle

Just as I was about to send this post out, the Dallas Fed responded to Zerohedge and said they did not “issue such guidance to banks”, the follow up story is here  http://www.zerohedge.com/news/2016-01-18/fed-responds-zero-hedge-here-are-some-follow-questions I personally hope this is true as “reality” will be pulled forward, …one can hope!

Now, we await to hear individual names of “who” is in trouble.  We have already seen Glencore and other commodity trading group bonds collapse.  The credit markets have already discovered Citi and Wells Fargo have just “non” reserved for almost no losses in their energy portfolio.  Is this credible?  Somewhere $500 billion and $1 trillion has been lent into the energy industry over the last 30 months …with probably a minimum expected oil price of $70, is ANYONE profitable at $29?  The rubber will surely meet the road in this market!

While on the subject of fictional accounting, foreign central banks have off loaded some $1 trillion worth of “reserves”, specifically U.S. Treasury securities.  There is only one problem with this, there has been no accounting anywhere publicly on the other side of these trades.  Who bought these Treasuries to provide the cash?  Where are they accounted for?  Most probably the ONLY place where this size transaction could be done in the darkness of night would be the ESF (Exchange Stabilization Fund chartered in the 1930′s).  For $1 trillion worth of securities to go unaccounted is not small potatoes, the only other such “misplacement” was back in Sept. 2001 when it turned out the military could not account for $2.3 trillion but that was overshadowed the following day with the “other” news.

As for peddling fiction, if the BLS used the “old fashioned” unemployment numbers (U-6) they used to report, the U.S. would have 9.9% unemployment.  If they decided to go entirely non fiction the number according to John Williams is 23%!  In a nation of 330 million, we have 94 million “no longer in the work force” and 46 million unable to feed themselves …30% and 15% respectively.  Are these 94 million, independently wealthy and do not need work?  If we were living in a day of still photographs and radios, the food lines could mostly be hidden.  Since we live in a world where everything you do is recorded, these “food lines” are erased by EBT transfer payments …problem solved (at least publicly)!

A little off subject but how about the timing of the Iran deal?  They are now allowed to sell oil at what Wall Street has already called “bottom”?  Are we now looking for another, future bottom?  Also, they now get their hands on somewhere near $150 billion in previously tied up funds.  What will happen to the institutions who will need to credit these funds and forward to Eastern institutions?  Another question, one many have simply laughed off as not doable …what if Iran took a “small” amount, say $10 billion and bought gold with it?  What if they had a “crazy” (and angry) man at the helm and decided to take those funds and bid for every gold ounce for sale on the planet?  Might this be a financial nuclear bomb …?  I am not saying they will do anything other than tend to their own business with these funds, what I AM saying is, we just handed them a very big and very loaded financial gun!

Folks, it is what it is and the global margin call is being issued with no hope of it being met.  The real economy is now contracting with a financial economy more leveraged and in debt than ever before under any measurement.  “Less income and less cash flow to service more debt than in all of history” … this is not fiction, it is stark reality.  Now, we must watch to see what the responses will be as the markets overwhelm all plunge protection teams, central banks and sovereign treasuries.  In plain street language, the markets are now far larger and far more disorderly than the smoke, mirrors, lies and abilities of the financial puppeteers to handle.

We will shortly be hearing individual “names” as we did back in 2008.  Names like Fannie and Freddy, Lehman and Merrill, Citi and AIG.  Once you begin to hear “names”, we will be very close to the plug being pulled on markets.  When you hear individual names it will be like blood in the shark infested waters of the speculators.  These names will be attacked to the death.  Counterparty risk will be back, first and foremost in decision making, NO ONE will be trusted.  Credit markets will begin (they already are) to seize up and the only “policy option” will be to unplug the computers!  I wish it were all fiction!

Standing watch,

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