Posted at 3:45 PM (CST) by & filed under In The News.

The Fed’s A “Joke,” Saxobank CIO Prefers Gold Amid Increased Uncertainty
Tyler Durden on 09/20/2015 16:55 -0400

“A joke” and “far from impressive”, both descriptions give you a sense of the frustration being felt by Saxo Bank’s Chief Economist Steen Jakobsen who analyses the decision not to raise rates in this brief clip. The Fed “missed opportunity to raise rates for first time since 2006″according to Steen who has been consistently arguing against what he calls the Fed’s “pretend-and-extend” culture. Volatility and uncertainty will remain high and there’s now little chance of a rate rise this year suggests Steen (expecting a big rally in gold), given that EM economies and China are unlikely to emerge from the doldrums in the near-term.

The last minute gets dark…

“…as always with The Fed is clearly shying away from taking any hard decisions, from actually taking any accountability ort responsibility for resetting the clock on this extremely easy monetary policy… they are just as likely to cut as to hike.”



Housing “Brightspot” Burns Out – Existing Home Sales Plunge Most In 7 Months
Tyler Durden on 09/21/2015 10:09 -0400

After an almost incessant rise since January, Existing Home Sales in August plunged 4.8% (the most since January and dramatically worse than the -1.65 drop expected). This is the 3rd biggest monthly collapse since the financial crisis. While the Northeast saw no change, The West (down 7.8% MoM) and South (down 6.6% MoM) saw the biggest plunges in sales as median home prices fell for the 2nd month in a row. It appears the one brightspot in the economy (according to mainstream media) has burned out as affordability and excitability come to a turning point.

An ugly month for sales: (must be the weather)



Chart: Bloomberg

Lawrence Yun, NAR chief economist, says home sales in August lost some momentum to close out the summer. “Sales activity was down in many parts of the country last month — especially in the South and West — as the persistent summer theme of tight inventory levels likely deterred some buyers,” he said.

But, always eager to find a silver lining, no matter what the data says,

“The good news for the housing market is that price appreciation the last two months has started to moderate from the unhealthier rate of growth seen earlier this year.”

Speaking of prices, this is where they stand: “the median existing–home price for all housing types in August was $228,700, which is 4.7 percent above August 2014 ($218,400). August’s price increase marks the 42nd consecutive month of year–over–year gains.”


Posted at 2:46 PM (CST) by & filed under Jim's Mailbox.

Dear Jim,

This is simply an illustration of our new lower standard of living. Two wage earners now have a harder time than our Dads did when they were the sole earner for the family. Such is progress?
Bill Holter

The Typical Male U.S. Worker Earned Less in 2014 Than in 1973
Sep 18, 2015 By David Wessel


The typical man with a full-time job–the one at the statistical middle of the middle–earned  $50,383 last year, the Census Bureau reported this week.

The typical man with a full-time job in 1973 earned $53,294, measured in 2014 dollars to adjust for inflation.

You read that right: The median male worker who was employed year-round and full time earned less in 2014 than a similarly situated worker earned four decades ago. And those are the ones who had jobs.

This one fact, tucked in Table A-4 of the Census Bureau’s annual report on income, is both a symptom of an economy that isn’t delivering for many ordinary Americans and at least one reason for the dissatisfaction, anger, and distrust that voters are displaying in the 2016 presidential campaign.

What about women? Well, they haven’t closed the pay gap with men, but the inflation-adjusted earnings of the median female worker increased more than 30% between 1973 and 2014, to $39,621 from $30,182, according to census data.


Posted at 9:42 AM (CST) by & filed under

By Greg Hunter’s

Dear CIGAs,

Financial writer Bill Holter contends the recent announcement of the Federal Reserve not to raise rates means the “Fed has Lost Control.” Holter explains, “Whatever the Fed does is wrong. The reason I say that is because no matter what they do, they can’t fix what they have already done. There is no policy at this point that can repair where we are at this point as far as debt ratios, derivative outstanding and the money supply exploding. Nothing that they do now can fix it. The only thing that remains is a reset.”

In the reset, Holter contends, “All debt will be impaired. . . . A reset is going to be a shutdown of the system. Everything will stop. When you are talking about bonds being impaired, you are probably going to see that start or begin in the derivatives market. The derivatives is the tail that has been wagging the dog for years. Derivatives are leverage, and you can use that leverage to control prices. If they can put $1 down and control $100, you can pretty much control the price of an asset, and that’s what they have done. They have supported stocks. They pushed interest rates down and supported bonds. They have suppressed gold and silver prices. They were able to paint a picture using derivatives with 100 to 1 or more of leverage, and when they lose control, that derivative chain between bank A, B, C and D is going to snap. When it snaps, the music stops and everything is going to stop. Once something does break, I don’t think it will take much more than 48 hours for you to wake up in the morning and find that nothing works. Your credit card doesn’t work. Your debit card doesn’t work. You go to your bank and the ATM doesn’t work, and nothing is going to work. The entire financial system will shut down. The reset will be the reopening. It’s not the closure that will kill you, it’s going to be the reopening. In the reopening, everything is going to be revalued. How long will it take to reopen? I have no idea. It could be a week, two weeks, one month, two months or six months. Who knows, but the financial landscape is going to look different, and values will be unrecognizable.”

This is not going to just be a financial problem, but a problem getting things you need to live. Holter says, “These big stores get stocked up every single night. . . . The average store only has food for about two or three days. So, this is not going to just be an issue about you paying your bills. It’s going to break down so badly it is going to be an issue about whether or not you can get food.”

On gold and silver, is this the bottom? Holter says, “To answer your question, yes, I think this is the bottom. Can they push the price down again?   It’s possible, but like you say back in 2009, silver on the COMEX was trading just under $9, and to buy retail metal, you could not get anything under $15. . . . The physical market has hit a hard bottom.”


Posted at 5:42 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

News out of Canada this past week provided a bit of a twist in the FATCA rules. As you know, FATCA requires the reporting of bank and financial assets held overseas by U.S. citizens and their institutions. Several readers sent this along believing the United States IRS was engulfing the records of Canadian citizens. I don’t believe this to be the case. As I understand it, this ruling will only affect U.S. citizens living in Canada or people with dual U.S./Canadian citizenship.

While this ruling was not a blockbuster, I believe it is important to revisit FATCA itself. As I understand it and have been told by tax professionals, the law only pertains to banks (accounts) and brokers (securities). Silver or gold held in non-bank vaults do not generate reporting requirements either from the vault or the customer. Effectively, holding gold or silver in a non-bank vault outside of the U.S. is currently a legal avenue to having assets of value outside of borders with no reporting requirements. Could this change? Yes it could but it will be a difficult one to enforce as a non-bank vault has no financial or banking charter which could be used as leverage. What I am saying is this, the way it currently stands, non-bank vaults cannot be threatened with their license being pulled.

This current situation is an important one because it is still a legal “escape route” for capital. You can do this as easily as the elite can, though not in magnitude of course. As I wrote Friday, should you desire help with storage, please contact me and I will put you in touch with the storage specialist at Miles Franklin.

It has now been nearly six months that Jim Sinclair and I have been working together. We wanted to give it some time to make sure our partnership “fit” and was comfortable. It is! We are like minded and have complemented each other by asking hard questions and pushing each other to think things “further” through. As many of you may know, prior to partnering with Jim I wrote for Miles Franklin’s blog. Many never knew I also brokered metal for them. I was paid to write, had I publicly written “call me” it would not have been fair to the other brokers in the office so I remained muted regarding my capacity as a broker.

I am writing now at Jim’s request because he believes it is time. He has done a couple of large trades through Miles Franklin and was quite pleased. After his “testing” Miles Franklin and our time working together, Jim wants me to let you know that I broker metal. I myself have completed numerous trades with them and have 100% in their ability to deliver.

Please e-mail me or give me a call and I will be happy to work with you to secure, at least in part, your financial future.

Standing watch,

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

Posted at 3:02 PM (CST) by & filed under Jim's Mailbox.

Hi Jim,

I think it’s incredible; Martin Armstrong is starting to sound an awful lot like you. “Yellen is trapped. She CAN’T raise rates now.” Ya think?

I remember the night at the CMRE dinner when a man stood up and asked you why you thought QE would fix anything. You responded, “I didn’t say it would help. I said that’s what they’re going to do.”

I just laugh now when my friends tell me about your latest “ridiculous” prediction. I say, “yeah; it’s funny, every time Jim Sinclair says something radical people laugh themselves to tears. then when he’s right, they say, “well of course that had to happen.”

My father bought a piece of property in Watchung, NJ for $60,000 in the early 1970′s. People told him he was crazy. One builder said, “Nelson, it’ll cost $1 million to put a bridge over the stream to access that property.” Dad just said, “someday it’ll be worth it to build a $1 million bridge to this land.” He sold that land 10 years later for $1 million. The developer just sold the last LOT up there for $3.5 million last year. Just a lot. Not even house on it in a development with a bunch of McMansions on it. $3.5 million for just the lot. People forget that the value of money changes.

You’ll get a chuckle out of this: in 2001, when you said that by January of 2011, gold would hit $1650 when it had been stuck around $400 for years, people I know laughed and laughed and told me how crazy you were. I just said, “well he has a better record than any one I know. You’d do well to listen. In 2011, when gold hit $1650 in JUNE, not January one guy said to me, “damn that Sinclair; my February options expired worthless.” I said, you mean you actually… oh nevermind.”

As my grandfather used to say, “some people don’t have the brains they were born with.”

In 2001, we had JUST finished paying all of our bills to the hospitals and doctors and I had nothing. I scraped together $14,000 and bought every ounce of gold I could lay my hands on. Coins, bars and mostly, through gold mining shares. Ten years later I was up 2000%.

Thanks for your advice over the years and for killing yourself over to give ordinary folks amazing amounts of information for free.


Posted at 10:07 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

The following is a quote from King World News and Richard Russell

The Greatest Wealth Transfer In History

This is all part of a longer-term bottoming process in the gold market. It’s impossible to know if the bottom has already been made, but there is no question that when gold enters the next leg higher in this secular bull market, fortunes will be made on the upside in gold, silver, and the high-quality mining shares. Likewise, fortunes will be lost as paper assets such as bonds implode as one of the greatest wealth transfers in world history unfolds.


Russia Boosts Gold Reserves by Most in at Least Five Months
Eddie Van Der Walt
September 18, 2015 — 10:45 AM EDT

Russia’s appetite for gold accelerated last month, with the country adding the most to its reserves since at least March.

The nation increased holdings to 42.4 million ounces from 41.4 million ounces in July, the central bank said on its website Friday. The amount bought was about the same as the 30.5 metric tons that Russia purchased in March, then the highest amount in six months.

Russia, the sixth-biggest holder of the metal, more than tripled its hoard since 2005 and holds the most metal since at least 1993, International Monetary Fund data show. It’s been steadily buying bullion even as international sanctions over the Ukrainian conflict and a plunge in oil prices contributed to a collapse in the ruble. Gold priced in rubles jumped 60 percent in the past year.

“Russia has been building its holdings for a long time now for very political reasons,” Adrian Ash, head of research at BullionVault, said by phone from London. “It shows the emerging-market bid remains strong for gold, which is proving supportive.”


Russia added about 13 tons in July and 24 tons the month before that. China, Kazakhstan, Ukraine and Belarus are among other nations that have been accumulating gold.

Gold for immediate delivery has dropped 3.7 percent this year to $1,140.70 an ounce in London. Prices are heading for a third annual decline as the Federal Reserve moves closer to raising interest rates, diminishing bullion’s allure because the metal doesn’t pay interest, unlike some competing assets.



Jim Sinclair’s Commentary

That number will surely get the Brother’s attention. Time to get out the non-existent nukes.

One million Yemeni fighters prepare to invade Saudi Arabia
Thursday, 17 September 2015 14:52

A million Yemeni tribal fighters are gathering near the border with Saudi Arabia in preparation to invade the Kingdom, Iran’s Kayhan newspaper has reported.

The newspaper quoted what it described as “informed sources” in Sanaa as saying that “the political forces and the tribes of Yemen announced a general alarm to mobilise one million Yemeni fighters near the border with Saudi Arabia to invade its territory and curb its aggression on Yemen.”

The paper quoted a spokesman for the Yemeni army, Brigadier General Sharaf Ghalib Luqman, as claiming that his army has captured Saudi, Emirati, Bahraini and Qatari fighters in the province of Marib and will present them to the media in the coming days.

It added that Yemeni army units and Houthi rebels have besieged two Qatari battalions in Marib and that Qatar has appealed to Saudi Arabia not to bomb the region to ensure its citizens will not be victims of “friendly fire”.

Remarking on the Houthi attack on the Safer camp in Marib, Kayhan reported that Saudi Arabia has moved all soldiers from the base into its territory after the killing of 300 Emirati, Saudi and Bahraini fighters.



‘Mystery Inside an Enigma’: Why Are US Neocons Dying to Intervene in Syria?
17:15 18.09.2015

American analysts are weighing pro et contra of a potential Syrian campaign; “aye, there’s the rub”: if Washington topples Syria’s Bashar al-Assad, the political vacuum will be most likely filled by the notorious ISIL and al-Qaeda extremists, Patrick J. Buchanan warns.

While the European refugee crisis goes on, voices have emerged demanding that the ongoing fighting in Syria should be ended; however, some Western experts go so far as to urge Washington to send US troops or well-armed American proxies to oust democratically elected Bashar al-Assad, claiming that the Syrian President is the root of all evil in the Middle East.

Furthermore, they accuse Russia of supporting Damascus and turn a blind eye to the fact that Moscow is contributing a lot to a difficult battle against terrorism in the region.

Referring to the fact that the American strategy in Iraq and Libya has proved ineffective and disastrous, Timothy E. Kaldas, a Cairo-based analyst and non-resident fellow at the Tahrir Institute for Middle East Policy, poses a question: how will the US’ Syrian operation be different?

“How will this be different? What specific changes in the strategy will mitigate the disastrous consequences of the invasion of Iraq or the air strikes in Libya so as to prevent continuing the cycle of violence that has contributed to the destabilization of the region and the displacement of tens of millions of people? Failure to begin by answering this question means forming a plan that will deliver the same tragic failures we have become all too familiar with,” Kaldas asks the advocates of intervention in his article for Defense One.

On the other hand, US conservative political commentator and author Patrick J. Buchanan warns that if Washington topples democratically elected Syrian President Bashar al-Assad, the political vacuum will be filled by Islamists, namely the notorious Islamic State.



Jim Sinclair’s Commentary

Thank God there is no inflation!

In America’s most expensive city THIS is what $350K buys you in San Francisco

  • A dilapidated and tiny two bedroom, one bathroom home is being sold in the Outer Mission neighborhood of the city for $350,000
  • The 765-square-foot wood siding house is being showcased as a ‘single family’ listing
  • Built in 1906, it is described as a ‘distinguished home in need of work’

PUBLISHED: 19:33 EST, 17 September 2015 | UPDATED: 00:34 EST, 18 September 2015

In many cities across the country, $350,000 is enough to buy a nice sized home with all the trimmings.

But in America’s most expensive city, San Francisco, that amount of money is only enough to land a person in a wooden shack.

A new real estate listing in the Outer Mission neighborhood of the city has a dilapidated 765-square-foot wood siding home for sale for $350,000.

The two bedroom and one bathroom California dwelling sits on a 1,633-square-foot lot on 16 De Long Street in the city.



Posted at 10:01 AM (CST) by & filed under Jim's Mailbox.


The level of skulduggery and manipulations shows no boundaries when it comes to what the banksters are capable of doing and willing to do to keep their lies going.

The place called hell is warming up for these crooks and one can only hope it will be good and hot!

CIGA Larry and Miki

Primary Dealers Rigged Treasury Auctions, Investor Lawsuit Says
Alexandra Scaggs Matthew Leising
September 17, 2015 — 5:00 AM EDT

The same analytical technique that uncovered cheating in currency markets and the Libor rates benchmark — resulting in about $20 billion of fines — suggests the dealers who control the U.S. Treasury market rigged bond auctions for years, according to a lawsuit.

The analysis was part of a 115-page lawsuit filed in Manhattan federal court on Aug. 26 by Quinn Emmanuel Urquhart & Sullivan LLP and other law firms. The plaintiffs built their case against the 22 primary dealers who serve as the backbone of Treasury trading — including Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley — using data from Rosa Abrantes-Metz, an adjunct associate professor at New York University who has provided expert testimony in rigging cases.

Her conclusion: More than two-thirds of a certain type of Treasury auction appear to have been rigged. She found issues with other auctions, too.

“The only plausible explanation is that Defendants coordinated artificially to influence the results of the auctions in the primary market,” according to the complaint filed by the Cleveland Bakers and Teamsters Pension Fund and other investors.

The lawsuit, which seeks unspecified damages, comes as the U.S. Justice Department probes whether information in the Treasury auction market is being shared improperly by financial institutions, three people with knowledge of the investigation said in June. Treasury traders at some banks learn of customer demand hours before auctions, and were communicating with their counterparts at other firms via chat rooms as recently as last year, Bloomberg News reported earlier this year.




The result of high speed computers that never lose money and

electronic specialists.





Just a slight tweak in the article and Larry will have it right.

“So we know that, no matter what the Fed does, we can count on six major money-making opportunities for the next few years:

The euro will continue to crash. European stocks will continue to decline. The Japanese yen will continue to implode. And Japanese stocks will continue to fall. And we can capture huge profit potential with investments that soar when these things sink.

And we also know that as money comes out of these things, it will flow into the U.S. dollar and U.S. stocks, creating even greater profit opportunities for us.”

The money will flow alright, but into the safe haven of precious metals!

With global economies expected crater, our economy will be dragged down with them.

For that matter, we are at the greatest risk because our financial engineering has dug us into a hole, a massive debt chasm, from which there is no escape.

CIGA Wolfgang Rech

Fed FAILS to raise rates: What it means

Just after 2:00 PM today, the Federal Reserve announced that it will NOT raise interest rates at this time. In its statement, the Fed said that it will wait to see further strengthening in the economy, leaving many to speculate that it may still raise rates later this year.

All over TV right now, pundits are pontificating on what this means. Will investors lose confidence due to the Fed’s failure to act? Or will they be emboldened by the specter of several more months of zero percent rates?

The good news is, we don’t have to know the unknowable. We already have all the information we need to go for life-changing profits — not just now, but all the way through 2020.

We know that the most powerful cycles in the economic universe are converging into a supercycle that will cause government debt to implode around the globe; first in Europe, then in Japan and finally, here in the United States.

We know that even now — in the run-up to C-Day (convergence day) on October 7, massive amounts of capital are flowing out of the euro and yen and out of European and Japanese stocks.

And we know where the lion’s share of that money is going: Straight into the last safe haven investments in the world: The U.S. Dollar and U.S. stocks.

So we know that, no matter what the Fed does, we can count on six major money-making opportunities for the next few years:

The euro will continue to crash. European stocks will continue to decline. The Japanese yen will continue to implode. And Japanese stocks will continue to fall. And we can capture huge profit potential with investments that soar when these things sink.

And we also know that as money comes out of these things, it will flow into the U.S. dollar and U.S. stocks, creating even greater profit opportunities for us.

This is precisely why I created Supercycle Trader: To help you harness the most powerful economic wave any of us will ever see in our lifetimes: The supercycle of 2015-2020.

You owe it to yourself to get the facts: Click this link to read my report and to discover how you can not only survive, but USE this crisis to go for windfall profits.

Yours for supercycle survival and profits,


Larry Edelson

Senior Analyst, Weiss Research
Editor, Supercycle Trader

Posted at 10:06 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

Yesterday’s article “Is YOUR ‘pool’ full?” drew many responses and much to my surprise a reply from Bron Suchecki himself! I must say, even though I disagree with some of his writings, Mr. Suchecki is a class act and true gentleman. He began with an apology for the title and closing of his article “Who is the player and who is being played?”. He wrote his intention for that phrase was for his example of the games played with warehouse stocks.

Bron did not refute my logic but disagrees about the cause for the current retail coin shortages. He believes the shortages exist because the mints cannot keep up with demand, it is not a problem getting the raw metal he says. I would simply ask this, “why is gold in London in severe backwardation?” This condition should NEVER exist.

What he did disagree with is paying a large premium to own coins in hand. I would again simply ask, what is the cost to own a coin and have it in your hand? It is the physical price, not the pooled price nor any other paper price. We clearly saw an example of HUGE premiums of physical over paper in 2008, while COMEX briefly traded under $9, no physical metal changed hands under $15. So, what was the “real” price back then?

He went on to say he was surprised at my statement “if you hold metal in hand, you have no question as to whether you own it” because that as he said “implied I did not trust Eric Sprott’s funds or James Turk’s services”. Let me say this, I know Mr. Sprott very well and I know James Turk via e-mail and his writitngs, I trust them both. That said, I trust my own eyes more than I trust ANYTHING OR ANYONE (even though age is taking its toll and it’s time for glasses). One final point he agreed with to my shock was “there will be future cases of fraud and empty vaults” even citing the latest at Bullion Direct as an example. (As a side note, the biggest example of “empty vaults” was Morgan Stanley charging full storage fees for nonexistent metal. Only to be slapped on the wrist because they had the paper to pay clients with) I believe his thought process here reinforces much of what I wrote yesterday. Mr. Suchecki finished his e-mail by pointing out Perth Mint has been in business for 116 years, is still owned by the government and provided a bar list for perusal.

To finish I must say thank you for the reply Bron. You showed me you are a gentleman and a class act with your response! Now I will do something I have hesitated to do because I never want to appear self serving or like a carnival barker. Since joining forces with Jim, I have retained my business relationship with Miles Franklin, still broker metals and can help with storage of metals via Brink’s in Montreal. We also have “non bank” storage agreements in Switzerland, Hong Kong, and Singapore. While I cannot comment first hand on the Swiss, Hong Kong or Singapore facilities, I have been personally to the Brink’s vault and observed while they audited the holdings. I saw with my own eyes how and where the metals are stored and how they are audited. This process is done every six months by an independent auditor. If segregated storage is something you feel necessary because you hold too much metal to be safely secured personally, please feel free to contact me.

Standing watch,

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