Posted at 8:12 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

This is as major as was the invention of the OTC Derivative as a prolific instrument.

There is a major change in the direction of the wind from behind to directly in the face of the major banksters. If there is more to shift in legal interpretation contained herein then between failed OTC derivatives of all kinds and types plus huge civil awards aggravated by punitive damages, the headline below is absolutely correct. Banks will be dropping like flies.

World’s 16 biggest banks, including RBC, ordered to face Libor lawsuits in ruling court warns could ruin them
Bob Van Voris, Bloomberg News | May 23, 2016 5:41 PM ET

Sixteen of the world’s largest banks including JPMorgan Chase & Co. and Citigroup Inc. must face antitrust lawsuits accusing them of hurting investors who bought securities tied to Libor by rigging an interest-rate benchmark, a ruling that an appeals court warned could devastate them.

The appellate judges reversed a lower-court ruling on one issue — whether the investors had adequately claimed in their complaints to have been harmed — while sending the cases back for the judge to consider another issue: whether the plaintiffs are the proper parties to sue, in part because their claims, if successful, provide for triple damages that could overwhelm the banks.

“Requiring the banks to pay treble damages to every plaintiff who ended up on the wrong side of an independent Libordenominated derivative swap would, if appellants’ allegations were proved at trial, not only bankrupt 16 of the world’s most important financial institutions, but also vastly extend the potential scope of antitrust liability in myriad markets where derivative instruments have proliferated,” the U.S. Court of Appeals in New York said in the ruling.

Bank of America Corp., HSBC Holdings Plc, Barclays Plc, Credit Suisse Group AG, Deutsche Bank AG, Royal Bank of Canada and Royal Bank of Scotland Group Plc are also among the banks sued in Manhattan.



Jim Sinclair’s Commentary

If it is a computer based financial instrument it is sound only if it is hack proof. That is an oxymoron – there are no exceptions whatsoever.

SWIFT to unveil new security plan after hackers’ heists
By Huw Jones and Tom Bergin
Tue May 24, 2016 4:19pm IST

The SWIFT secure messaging service that underpins international banking said on Tuesday it plans to launch a new security programme as it fights to rebuild its reputation in the wake of the Bangladesh Bank heist.

The Society for Worldwide Interbank Financial Telecommunication (SWIFT)’s chief executive, Gottfried Leibbrandt, told a financial services conference in Brussels that SWIFT will launch a five-point plan later this week.

Banks send payment instructions to one another via SWIFT messages. In February, thieves hacked into the SWIFT system of the Bangladesh central bank, sending messages to the Federal Reserve Bank of New York allowing them to steal $81 million.

The attack follows a similar but little-noticed theft from Banco del Austro in Ecuador last year that netted thieves more than $12 million, and a previously undisclosed attack on Vietnam’s Tien Phong Bank that was not successful.

The crimes have dented the banking industry’s faith in SWIFT, a Belgium-based co-operative owned by its users.

The Bangladesh Bank hack was a “watershed event for the banking industry”, Leibbrandt said.

“There will be a before and an after Bangladesh. The Bangladesh fraud is not an isolated incident … this is a big deal. And it gets to the heart of banking.”

SWIFT wants banks to “drastically” improve information sharing, to toughen up security procedures around SWIFT and to increase their use of software that could spot fraudulent payments.



Jim Sinclair’s Commentary

Since the investor discussed has a habit of talking his position, what is said needs to be understood in those terms. Regardless, it is interesting.

Is the Next ‘Color Revolution’ Red or Golden?
13:04 24.05.2016(updated 13:05 24.05.2016)
Stacy Herbert, Max Keiser

On today’s episode of Double Down, hosts Max Keiser and Stacy Herbert are joined by market analyst, Stephen Kendal, to discuss billionaire investor George Soros’ double down on his bet against the S&P500 and long gold.

Click here to listen to the episode…

Nearly eight years since the last financial crash, billionaire hedge fund manager, George Soros, is betting on the same happening again — and he’s putting his money where his mouth is. In the last quarter, Soros has doubled his bet on an S&P500 crash and massively increased his stake in gold miners and gold. Double Down talks to market analyst, Stephen Kendal, who owns a quad server analysing thousands of data points on markets in the UK and US, about whether or not Soros, who is one of the best performing hedge fund managers in history, is making the right move yet again.



Jim Sinclair’s Commentary

We all have to be in violation of at least half a dozen.

20,642 New Regulations Added in the Obama Presidency
James Gattuso / Diane Katz
May 23, 2016

The tide of red tape that threatens to drown U.S. consumers and businesses surged yet again in 2015, according to a Heritage Foundation study we released on Monday.

More than $22 billion per year in new regulatory costs were imposed on Americans last year, pushing the total burden for the Obama years to exceed $100 billion annually.

That’s a dollar for every star in the galaxy, or one for every second in 32 years.

The consequences of this rampant rulemaking are widespread:

Restricted access to credit under the hundreds of rules unleashed by the Dodd–Frank financial regulation statute

Fewer health care choices and higher medical costs from the Affordable Care Act

Reduced Internet investment and innovation under the network neutrality rules dictated by the Federal Communications Commission

These are just a few of the 2,353 regulations of 2015—and there have been 20,642 since Obama took office in 2009.

The worst of last year’s wave—in terms of cost, at least—was the Environmental Protection Agency’s “Clean Power Plan.”



Bill Holter’s Commentary

An excellent visual of how much paper gold is traded versus how much real gold exists.

An Inside Look at the World’s Biggest Paper Gold Market

Gold's Secretive Price Discovery Market: Inside London's Vaults


Posted at 8:48 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

(Courtesy of

Bill Holter from JS Mineset is back to help us document the collapse for the fourth week of May, 2016. And as physical gold and silver moves East and intothe strong hands of more than a billion Chinese, and as foreign banks publicly settle global trade in the Yuan, Bill reminds us that “Every step forward by China, is one or two steps backward for the US and the Dollar, that’s what’s happening. For instance, if the Yuan is backed by gold, then why would someone accept the Dollar in lieu of the Yuan if the Dollar’s not backed by anything.” The build out of the infrastructure for the world to move completely away from the Dollar is almost complete. You have been warned.

Posted at 8:39 PM (CST) by & filed under In The News.

Bill Holter’s Commentary

The Saudis just upped the ante!

Saudi Press: U.S. Blew Up World Trade Center To Create ‘War On Terror’
by Deborah Danan22 May 2016

TEL AVIV – The Saudi press is still furious over the U.S. Senate’s unanimous vote approving a bill that allows the families of 9/11 victims to sue Saudi Arabia. This time, the London-based Al-Hayat daily has claimed that the U.S. planned the attacks on the World Trade Center in order to create a global war on terror.

The article, written by Saudi legal expert Katib al-Shammari and translated by MEMRI, claims that American threats to expose documents that prove Saudi involvement in the attacks are part of a long-standing U.S. policy that he calls “victory by means of archives.”

Al-Shammari claims that the U.S. chooses to keep some cards close to its chest in order to use them at a later date. One example is choosing not to invade Iraq in the 1990s and keeping its leader, Saddam Hussein, alive to use as “a bargaining chip” against other Gulf States. Only once Shi’ism threatened to sweep the region did America act to get rid of Hussein “since they no longer saw him as an ace up their sleeve.”

He claims that the 9/11 attacks were another such card, enabling the U.S. to blame whoever suited its needs at a particular time; first it blamed Al-Qaeda and the Taliban, then Saddam Hussein’s regime in Iraq, and now Saudi Arabia.

September 11 is one of winning cards in the American archives, because all the wise people in the world who are experts on American policy and who analyze the images and the videos [of 9/11] agree unanimously that what happened in the [Twin] Towers was a purely American action, planned and carried out within the U.S. Proof of this is the sequence of continuous explosions that dramatically ripped through both buildings. … Expert structural engineers demolished them with explosives, while the planes crashing [into them] only gave the green light for the detonation – they were not the reason for the collapse. But the U.S. still spreads blame in all directions.

The intention of the attacks, writes al-Shammari in his conspiracy article, was to create “an obscure enemy – terrorism – which became what American presidents blamed for all their mistakes” and that would provide justification for any “dirty operation” in other countries.



Bill Holter’s Commentary

This is VERY significant news! Deutsche Bank is apparently being kicked out of the club and thrown under the bus. In my opinion, the greatest collapse of all time may end up being pinned on them. Surely it could not be the fault of an American insolvency. Watch the ripple effect!

Moody’s Downgrades Deutsche Bank’s Debt Two Notches Above Junk
Submitted by Tyler Durden on 05/23/2016 17:49 -0400

While not quite on the level of last week’s Berenberg downgrade (to Sell) which warned that DB’s problems are now “insurmountable”, shortly after the close Moody’s surprised the market with a downgrade that may have substantial repercussions on the funding costs (and perhaps viability) of the largest German, and European, lender.

Shortly after the market close, the rating agency decided to pile some more pain on the misery that has befallen Germany’s largest lender (who just today admitted it had rigged stocks in addition to seeing yet another MBS probe unveiled against it), when it downgraded the bank’s credit ratings across the board as follows: Senior debt to Baa2, or just two notches above junk, Long term deposits to A3 and counterparty risk assessment to A3.

Moody’s also downgraded Deutsche Bank’s short-term ratings and short-term counterparty risk assessments were also downgraded to Prime-2 from Prime-1 and to Prime-2(cr) and Prime-1(cr).

Moody’s downgrades Deutsche Bank’s ratings (senior debt to Baa2, long term deposits to A3 and counterparty risk assessment to A3(cr)); outlook stable

The full release:

Moody’s Investors Service has today downgraded the ratings of Deutsche Bank AG and affiliates, including the bank’s long-term deposit rating, to A3 from A2, its senior unsecured debt rating to Baa2 from Baa1, its standalone baseline credit assessment (BCA) to ba1 from baa3, and its counterparty risk assessment to A3(cr) from A2(cr). Deutsche Bank’s short-term ratings and short-term counterparty risk assessments were also downgraded to Prime-2 from Prime-1 and to Prime-2(cr) and Prime-1(cr), respectively. Today’s rating action reflects the increased execution challenges Deutsche Bank faces in achieving its strategic plan.

Moody’s also downgraded the ratings of US–based Deutsche Bank Trust Corporation and its trust company affiliates. These trust companies’
long-term deposit ratings were downgraded to A2 from A1, their long-term issuer ratings were downgraded to Baa2 from Baa1, their standalone baseline credit assessment was downgraded to baa1 from a3; their long-term and short-term counterparty risk assessments were downgraded to A3(cr) from A2(cr) and to Prime-2(cr) and Prime-1(cr) respectively. The Prime-1 short-term deposit ratings of these trust companies were affirmed.



Jim Sinclair’s Commentary

Nothing is too big to be hidden in plain view in the new, new normal

A Harvard MBA Guy Is Out to Bring Down the Clintons
By Pam Martens and Russ Martens: May 23, 2016

Remember Harry Markopolos? That’s the tenacious financial expert that pounded on the door of the Securities and Exchange Commission (SEC) for years, providing it with detailed, written evidentiary support for the premise that Bernie Madoff, the respected former Chairman of the NASDAQ stock market, was running a massive Ponzi scheme. The SEC never confirmed the fraud before Madoff confessed as he ran out of money in December 2008 because it skipped the most basic of investigation techniques: it failed to verify if real stocks and bonds actually existed in Madoff’s client portfolios. They didn’t.

There’s a new Markopolos in town with that same brand of leave-no-stone-unturned tenacity and he has his sights set on the charity operations of Hillary and Bill Clinton, known as the Clinton Foundation and its myriad tentacles. Ortel’s actions come just as Hillary Clinton makes her final sprint for the Democratic nomination for President of the United States with Bill in tow as her economic czar. Like Markopolos, Charles Ortel does not mince words.

In a 9-page letter dated yesterday and posted to his blog, Ortel calls the Clintons’ charity the “largest unprosecuted charity fraud ever attempted,” adding for good measure that the Clinton Foundation is part of an “international charity fraud network whose entire cumulative scale (counting inflows and outflows) approaches and may even exceed $100 billion, measured from 1997 forward.” Ortel lists 40 potential areas of fraud or wrongdoing that he plans to expose over the coming days.

Like Markopolos, Ortel has an impressive resume. Ortel’s LinkedIn profile shows that he received his B.A. from Yale and an MBA from Harvard Business School.  He previously worked as a Managing Director at investment bank Dillon Read and later as a Managing Director at the financial research firm, Newport Value Partners. In more recent years, Ortel has been a contributor to a number of news outlets including the Washington Times and

The charges being made by Ortel are difficult to dismiss as a flight of fancy because mainstream media has tinkered around the edges of precisely what Ortel is now calling out in copious detail.

In a 2013 New York Times article, “Unease at Clinton Foundation Over Finances and Ambitions,” reporters Nicholas Confessore and Amy Chozick hint that Hillary Clinton’s political operatives are occupying offices at the Clinton Foundation headquarters, writing that they “will work on organizing Mrs. Clinton’s packed schedule of paid speeches to trade groups and awards ceremonies and assist in the research and writing of Mrs. Clinton’s memoir about her time at the State Department, to be published by Simon & Schuster next summer.”



Bill Holter’s Commentary

Play time with Principe!


Posted at 7:19 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Every step forward for the Yuan and a step backwards for the dollar.

Foreign banks to start China yuan trade settlement on Friday
Thu May 19, 2016 4:57am EDT

The first batch of foreign commercial banks has registered to directly trade yuan CNY=CFXS used for overseas trade settlement and can begin doing so on Friday, the foreign exchange market operator said.

Approved foreign commercial banks include CTBC Bank, Taipei Fubon Bank, Standard Chartered (STAN.L) and Citibank Hong Kong Ltd (C).

Foreign central banks have already been approved to trade directly in the country’s massive interbank forex market.



Jim Sinclair’s Commentary

There are contrails, chemtrails and Zika.

The first is transportation and the last two might be new transportation to a smaller world.


Posted at 10:49 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

At least it was a triple wide!

Mobile home in Malibu’s Paradise Cove sells for a record $5.3 million
Neal J. Leitereg

Seven-figure sales are an everyday occurrence in L.A.’s real estate hot bed, even in the mobile-home market. In Malibu, a mobile home recently changed hands for a record $5.3 million.

Found within the confines of the Paradise Cove Mobile Home Park, the triple-wide house was briefly listed for sale in March for $5.5 million before closing off-market. A year ago, the same property sold for $4 million, records show.

The sale is the most ever paid for a mobile home in Malibu, according to Pinnacle Estate Properties agent Elizabeth Seaman, who represented the buyer. Seaman declined to identify the new owner.


Posted at 12:02 AM (CST) by & filed under General Editorial.

Jim Sinclair’s Commentary

Behold, we live in the BS world.

The Inflation Targeting Scam And Why It Guarantees The Mother Of Financial Meltdowns
May 19, 2016

The estimable Martin Feldstein put the wood to the Fed in a recent op ed and in so doing hit the nail directly on the head. He essentially called foul ball on the whole inflation targeting regime and the magic 2.00% goalpost in part due to the measuring stick challenge.

A fundamental problem with an explicit inflation target is the difficulty of knowing if it has been hit.

That problem is plainly evident in the chart below. You could very easily make the argument that goods prices are beyond the Fed’s reach because they are set in the world markets and by the marginal cost of labor in China and the EM.

Therefore the more domestically driven CPI index for services such as housing, medical care, education, transportation, recreation etc. is the more relevant yard stick. Alas, if there is something magic about 2.00%, why then, mission accomplished!

On a five year basis, services inflation is up at 2.2% annually, and during the past year it has heated up to 3.2%.

Then again, if the Fed were not comprised of power-hungry apparatchiks looking for any excuse to intrude in the financial markets and dominate their hourly behavior, it might well recognize the merit of what we have termed “CPI Using Market Rent” (box).



Jim Sinclair’s Commentary

It looks like pay to play might have just gotten much more expensive.

Banks Sued by Investor Over Agency-Bond Rigging Claims
By Tom Schoenberg, David McLaughlin, Chris Dolmetsch
May 18, 2016 — 1:44 PM MST
Updated on May 18, 2016 — 5:11 PM MST

How Wall Street Led LendingClub Into Crisis

Suit follows probes of SSA bond market in U.S. and U.K.

Traders are alleged to have colluded to fix bond prices

Bank of America Corp. and Deutsche Bank AG were among five banks sued over claims that traders conspired to manipulate trading agency bonds issued by government entities and institutions like the World Bank, harming investors who bought and sold the securities.

The suit by Boston Retirement System, a pension fund representing city workers, follows inquiries by U.S. and U.K. authorities into the market for the debt, known as supranational, sub-sovereign and agency bonds, or SSAs. The probes target alleged illegal collusion in international trading and follow billions of dollars in settlements over claims that banks rigged interest-rate benchmarks and currency markets.

“Defendants’ scheme was driven by greed and opportunity,” the fund said in the complaint filedWednesday in Manhattan federal court.

The lawsuit, which also names Credit Agricole SA, Credit Suisse Group AG and Nomura Holdings Inc. or their units as defendants, resembles claims made against banks over misconduct in currency markets. It accuses traders of colluding with one another to fix prices at which they bought and sold SSA bonds in the secondary market. It adds the threat of possible triple damages available under U.S. antitrust law for investors harmed by any illegal price-fixing.



Jim Sinclair’s Commentary

Just another way for the 1% to screw you.

House Republicans Rig Hearing to Block Consumers from Going to Court
Public Citizen Is Fighting to Return Access to the Courts to American Consumers
By Pam Martens and Russ Martens: May 19, 2016 

The ink was barely dry on a proposal by the Consumer Financial Protection Bureau (CFPB) to restore the rights of banking customers to take their grievances into a court of law instead of a system of forced arbitration, when House Republicans threw together a hearing yesterday to scaremonger over make-believe evils of the proposal. The hearing was convened by the Republican-controlled Financial Institutions and Consumer Credit Subcommittee of the House Financial Services Committee and not-so-subtly titled “Examining the CFPB’s Proposed Rulemaking on Arbitration: Is it in the Public Interest and for the Protection of Consumers?”

The American Law Litigation Daily called the hearing “seriously lopsided.” ValueWalk called it “skewed.” We’re calling it brazenly rigged.

Paul Bland, Executive Director of the Nonprofit, Public Justice

In decades of watching Senate and House hearings, we have never seen a more unlevel playing field. Out of the four witnesses called to testify, three were hand-picked to parrot the position of the banks with one lonely witness on hand to counter their repeated misstatements of fact. Watching that one lone witness, Paul Bland, Executive Director of the nonprofit organization, Public Justice, attempt to provide balance to the proceeding was akin to watching bullies on the playground hurling dumb epithets at the straight-A kid in their class.

Most of the Republicans didn’t even bother to call on Bland or ask his opinion.  At one point, Republican Congressman Blaine Luetkemeyer of Missouri, a former banker himself, posed a slanted question to all four witnesses, then snapped at Bland, “You’re outvoted, it’s three to one.” When you rig a witness panel, naturally you can easily achieve three opinions against one. (On a side note, Luetkemeyer is attempting to do to endangered species what’s currently happening to banking customers – strip them of protections from predators.)



Jim Sinclair’s Commentary

Minimum wage rises. Get more money. People lose their jobs. Price of goods and services rise. All employees put on part time. Politician get the vote of those hurt the most.

Wendy’s to Lay Off All Cashiers, Autonomize 6,000+ Locations to Fight Wage Increases
May 17th, 2016 

The fight for $15 per hour. The unintended consequences of raising the minimum wage are already beginning to take hold on several industries nationwide. In one of the most public moves combating wage increases to date, Wendy’s fast food chain has announced plans to automatize cashiers at over 6,000 facilities nationwide by the end of 2016.

Though Wendy’s made their decision official this past Thursday, Company CEO Emil Brolick hinted last August that the franchise might do just this. At the time Wendy’s was debating laying off employees in favor autonomization, or increasing the prices on their menu. As Emil Brolick stated “our franchisees will likely look at the opportunity to reduce overall staff, look at the opportunity to certainly reduce hours and any other cost reduction opportunities, not just price. You know there are some people out there who naively say that these wages can simply be passed along in terms of price increases. I don’t think that the average franchisee believes that.”

Wendy’s CFO Todd Penegor went on to add “We continue to look at initiatives and how we work to offset any impacts of future wage inflation through technology initiatives, whether that’s customer self-order kiosks, whether that’s automating more in the back of the house in the restaurant. You’ll see a lot more coming on that front later this year from us.”

Indeed they will. In an interview with Business Daily, Wendy’s representatives noted how the company’s 258 restaurants in California were struggling to keep up with the $10/hr wage demands, and similarly, the company’s 200+ franchises in New York simply cant keep up with the cost of wage inflation. Last month these two states voted to impose a minimum wage increase to 15$ statewide – going into effect within the next several years.

This legislation, along with the growing support for “the fight for $15$” nationwide, was the deciding factor. Wendy’s will now faze out cashiers at every location nationwide, in favor of self serve kiosks. The company also claims they will move forward with mobile phone ordering and mobile payment systems, which the company has been testing for the last several years.



Bill Holter’s Commentary

Below are links to portable solar electricity. I have ordered these myself and make no endorsement other than they were recommended to me by a friend. I believe you should also buy a couple of good quality car batteries to store electricity. I can imagine nothing worse than spending a summer in Texas without even a floor fan running. While this will certainly not keep you accustomed to how you live now, it will not attract “flies” like a noisy generator will. Food for thought.

Posted at 11:50 PM (CST) by & filed under Jim's Mailbox.


Anyone with half a brain knows that if the US dollar is the major part of their reserves and the economy is sinking you had better get your reserves out of the dollar and into something more reliable that will hold its value. Like GOLD!!!!

CIGA Larry

U.S. debt dump deepens in 2016
by Patrick Gillespie
May 17, 2016: 8:35 AM ET

Central banks are dumping America’s debt at a record pace.

China, Russia and Brazil sold off U.S. Treasury bonds as they tried to soften the blow of the global economic slowdown. They each sold off at least $1 billion in U.S. Treasury bonds in March.

In all, central banks sold a net $17 billion. Sales had hit a record $57 billion in January.

So far this year, the global bank debt dump has reached $123 billion.

It’s the fastest pace for a U.S. debt selloff by global central banks since at least 1978, according to Treasury Department data published Monday afternoon.




My point exactly (regarding no left in the world, but price drops on Fed interest rate hike).

Apple rallies from 90 to 95 on such news.

CIGA Wolfgang Rech

Apple went from the hottest hedge fund stock to the coldest in just 3 months
Hedge funds unloaded about $7 billion worth of Apple stock in the first quarter.
By Julia La Roche

Hedge funds unloaded more than $7 billion worth of Apple (AAPL) stock during the first quarter, according to 13-F regulatory data compiled by FactSet.

The iPhone-maker’s stock had been a hedge fund darling for a long time. The stock had been the top purchase in the fourth quarter of 2015. According to Goldman Sachs, Apple ranked 7th among the stocks that “matter most” with 47 of 860 large hedge funds holding it as a top ten equity position.

“Apple, which was the top purchase by hedge funds last quarter, became the top sale by hedge funds in Q1,”FactSet’s Andrew Birstingl said in a new report. “The company saw $7.1 billion of its stock removed by hedge funds. Icahn Associates Holding was the main contributor to the selloff, as the activist firm exited its entire investment, valued at $4.8 billion.”


Posted at 12:38 AM (CST) by & filed under General Editorial.

Dear Comrades in Golden Arms,

I was there and considered by some to have been the largest gold trader from 1968 to March 1980. I recall every day of it like it was yesterday.


  1. I do not believe that gold has registered its all-time high by a long shot.
  2. I do not accept the recent decline from above $1900 as a gold bear market.
  3. I believe all accepted tools for market timing will fail in the long term super bull market.
  4. I believe the recent long decline to be but a reaction in the giant bull gold market.
  5. Into a new New Normal, all previous relationships between gold and anything will not apply.
  6. The basic motivator of new gold prices to come finds it basis in the physical gold market, not in the paper gold market.
  7. The 1% are not stupid or in the main would not have the positions that they have if market jerks.
  8. Knowing without any doubt what is about to occur, they have been for 8 years cleaning out the physical market.
  9. China and Russia are not gold speculators, but know exactly what is about to occur, having made it a policy to accumulate gold on a continuing basis.
  10. Like China and Russia, the right time to buy gold and therefore silver is when you have spare cash to do it.
  11. The demand for physical gold will eventually overcome the physical market, forcing deliveries to be taken on all the world’s paper markets and demanded in the forgotten large OTC derivatives of gold, written naked.
  12. The sign that this is taking place will be the ever increasing margin requirement of paper gold until it hits 100%.
  13. At that point the paper exchange is no longer a paper exchange but rather a physical exchange because physical gold supply will trade at a large premium to paper gold.
  14. This is the point in time when the question will be asked what is the value of a metals contract that cannot perform, the paper gold contracts.
  15. The answer to a non-performing contract is that its value is zero.
  16. Paper gold will trade down to the value of the paper it is written on, zero.
  17. At that time the value of physical gold will be whatever the major owners of physical wish it to be.
  18. The value of gold producing companies still functioning will be determined by their over the ground stored physical at full gold value and its underground gold at a modest discount to the stockpiled gold.
  19. Very few gold miners can grasp that concept. Investors do not have a clue.
  20. Talking heads seem to be getting a hint that something has changed in gold but have no clue as to why.
  21. This transmutation of what gold is, is happening right now, not some time in the future.
  22. The gold market is reflecting this in this minor recovery, making all fishing line market movements a great buy while gambleholic traders still can sell modestly into Rhino horn moves up.
  23. I do not think trading is correct because the final change will come overnight. You will go to sleep in one financial market and wake up the next day in the new New Normal financial world where gold, not paper, is King.
  24. The 1% makes this one of the first choices of assets to own on their decision tree.
  25. This explains the strange action of gold with the manipulators to the dirty work of their masters.
  26. As the paper price of gold is capped, the 1% are the major buyers on the physical metals, mostly direct from refiners and producers.
  27. This means that trillions of paper dollars need to be covered.
  28. The USDX may well be the most useless indicators of the value of the dollar.
  29. The value is not to be registered against other fiat currency, but rather in buying gold versus gold.
  30. As such, the USDX falls out of its traditional relationship to gold. This also reduces the SDR to a joke.
  31. Therefore the 1% is on the bull side of gold in the physical market while the Banksters have been on the short side of the gold price via paper.
  32. Time is running out for the short of paper gold to be a riskless trade with the Federal Reserve at its back. The intrinsic value of the silver and gold contract is zero and zero cannot fulfill the contract obligation of the paper gold contract. That is how the paper metals exchanges go boom. Therefore zero value for a delivery month on paper gold or silver is zero profit to the short of gold and silver paper contracts.
  33. All those long gold anything will have the wind at their back for a long and deserved change.

Questions are answered by Bill and I on the premium service where we have recorded numerous conversations on

what may well be the most important subjects you need to understand. Some of these conversations have over an hour of in-depth material.

Best Regards,