Posted at 11:55 AM (CST) by & filed under In The News.

Price suppression ends if buyers take delivery, Swiss refiner tells Physical Gold Fund
Submitted by cpowell on 06:20PM ET Wednesday, September 23, 2015. Section: Daily Dispatches
9:19p ET Wednesday, September 23, 2015

Dear Friend of GATA and Gold:

Physical Gold Fund’s John Ward today interviews an unidentified director of a large Swiss gold refinery who asserts, among other things, that gold is heading from West to East in huge volumes; that the gold price at the moment has no correlation to the physical market, which is tight; that if gold buyers ever start taking delivery of metal instead of leaving their metal on deposit with bullion banks, the situation could become dangerous; but that as long as buyers don’t take delivery, the current price mechanism — that is, price suppression by central banks and their bullion bank agents — can continue forever.

Of course this is pretty much the account that GATA and others, like JSMineset’s Jim Sinclair, have been providing for a long time.

The interview is 23 minutes long and can be heard at the Physical Gold Fund’s Internet site here:…

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
[email protected]

Posted at 3:17 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

Last week the clock ran out on the Fed’s latest bluff. They have gone 55 meetings over 80 months without a single tightening or rise in interest rates. Last week was supposed to be “different” and a tightening of credit was predicted by something like 82% of economists polled. We of course now know that no tightening occurred and a trial balloon was even floated about instituting a new round of QE…

This of course was an easy one to call. Look at what the markets have done since that meeting, how much worse would it be had the Fed actually raised rates? Look all around the world and especially at China beginning to unwind, do they need a tightening of credit? They just devalued the yuan again yesterday (without any mysterious plant explosions …yet), had the Fed tightened you must ask yourself how much bigger the devaluation would have been by market forces?

Leading into last week, I think the easiest way to know that credit did not need to be tightened was by looking at international trade. This is one area where the “numbers are the numbers” and are not massaged (annihilated) by government reporters (not to mention mainstream reporters!). You see, the trade numbers pretty much need to match up and the freight rates are extremely hard to hide. Pretty much, they are what they are and if lied about are too easy to debunk. Last week, Zerohedge wrote on this topic when they penned WTO’s Stark Warning On Global Trade: “The Timing Belt On The Global Growth Engine Is Off”.

Further, if you look below at the Baltic Dry index, do you see a “recovery” from 2008 or a dead cat bounce which is now waning? THIS is indicative of global GDP, anything different from individual countries is an outlier and must be seriously questioned (including China).


But why is this even important? First, because it is the REAL PICTURE but more importantly it is a very strong clue to actual rather than “made up” GDP. Spelled out for you, GDP is not growing enough (or at all) to create and bring new capital into the system. “The system” being one which has far more debt than it did during the 2007-09 event. Do you see where I am going with this? Clearly not enough growth exists globally to create the new capital necessary …yes that’s right…to carry a much larger debt load than we had back then!

Maybe it would be a good thing to remind you, one of the big problems back in 2008 was “too much debt”. Not only did the world not “liquidate” debt, it has taken on much more with an underlying economy that has been weakening for several years.

Going back to the top and full turn, how could the Fed have tightened last week? Or better, how can they ever tighten? The next move will be further additions of liquidity …at least as long as markets are open to do the “add”. Of course, just pulling the plug on the computers is another option!

Standing watch,

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

Posted at 1:37 PM (CST) by & filed under Jim's Mailbox.


When killing air is a capital crime with criminal prosecution and $7 billion+ in fines, while killing people receives a slap on the wrists.

Blatant political cronyism at its finest. Right out in the open. The “Right Stuff.”  The stuff revolutions thrive upon.

The scales of Justice?


They went out with the Dark Ages.

CIGA Wolfgang Rech

Dear Volkswagen: This Was Your Biggest Mistake

As we previously commented when it comes to justice, there are those companies that have been bailed out by the US Government, and then there is everyone else. Case in point, GM, which last Thursday was fined $900 million for covering up its faulty ignition switches that caused at least 124 deaths and hundreds of injuries.

The deal with GM was cut by U.S. Attorney for the Southern District of New York Preet Bharara, who said there’s no federal criminal penalty for knowingly putting a deadly product on the market. “It has been a challenging case, for the agencies, for the prosecutors and for me,” Bharara said.

As a result, nobody was prosecuted by the US government. 

“I don’t understand how they can basically buy their way out of it,” Margie Beskau, whose daughter Amy Rademaker was killed in an October 2006 crash, told the Times. “They knew what they were doing and they kept doing it.”

“So much for the Justice Department’s new strong policy on individual prosecution,” University of Maryland Law Professor Rena Steinzor told Corporate Crime Reporter. “This settlement is shamefully weak. A GM engineer knew about the fatal defect even before the first car rolled off the line. He secretly changed the part in 2005 but left hundreds of thousands of cars on the road with the bad switch. GM lawyers conspired to delay the recall. Much harsher penalties and individual prosecutions are warranted. The deferred prosecution is a toothless way of approaching a very serious problem.”




This is of very big interest as Deutsche Bank is the derivative MONSTER in the room! This I believe is quite likely.


Bill Holter

There Are Indications That A Major Financial Event In Germany Could Be Imminent
According to disturbing new intel that I have received, a major financial event in Germany could be imminent


Is something about to happen in Germany that will shake the entire world?

According to disturbing new intel that I have received, a major financial event in Germany could be imminent.  Now when I say imminent, I do not mean to suggest that it will happen tomorrow.  But I do believe that we have entered a season of time when another “Lehman Brothers moment” may occur.  Most observers tend to regard Germany as the strong hub that is holding the rest of Europe together economically, but the truth is that serious trouble is brewing under the surface.  As I write this, the German DAX stock index is down close to 20 percent from the all-time high that was set back in April, and there are lots of signs of turmoil at Germany’s largest bank.  There are very few banks in the world that are more prestigious or more influential than Deutsche Bank, and it has been making headlines for all of the wrong reasons recently.

Just like we saw with Lehman Brothers, banks that are “too big to fail” don’t suddenly collapse overnight.  The truth is that there are always warning signs in advance if you look closely enough.

In early 2014, shares of Deutsche Bank were trading above 50 dollars a share.  Since that time, they have fallen by more than 40 percent, and they are now trading below 29 dollars a share.

It is common knowledge that the corporate culture at Deutsche Bank is deeply corrupt, and the bank has been exceedingly reckless in recent years.

If you are exceedingly reckless and you win all the time, that is okay.  Unfortunately for Deutsche Bank, they have increasingly been on the losing end of things.


Posted at 11:49 AM (CST) by & filed under In The News.



Healthcare costs rise again, and the burden continues to shift to workers
By Noam N. Levey

American workers saw their out-of-pocket medical costs jump again this year, as the average deductible for an employer-provided health plan surged nearly 9% in 2015 to more than $1,000, a major new survey of employers shows.

The annual increase, though lower than in previous years’, far outpaced wage growth and overall inflation and marked the continuation of a trend that in just a few years has dramatically shifted healthcare costs to workers.

Over the past decade, the average deductible that workers must pay for medical care before their insurance kicks in has more than tripled from $303 in 2006 to $1,077 today, according to the report from the nonprofit Kaiser Family Foundation and the Health Research & Educational Trust.

That is seven times faster than wages have risen in the same period.

“It’s a quiet revolution,” said foundation president Drew Altman. “When deductibles are rising seven times faster than wages … it means that people can’t pay their rent. … They can’t buy their gas. They can’t eat.”

By comparison, workers’ wages increased 1.9% between April 2014 and April 2015, according to federal data analyzed by the report’s authors. Consumer prices declined 0.2%.

Raising deductibles and co-pays has traditionally been a way for employers to keep premiums in check.

And the new report shows that premium growth remained modest in 2015.



Jim Sinclair’s Commentary

Not could, but rather will.

Russia-China Alliance Could Launch New World Order
By Ivan Nechepurenko
Jun. 15 2015 21:05

Amid the fanfare and fireworks of Russia’s Victory Day celebrations in May, President Vladimir Putin held a prolific round of talks with his Chinese counterpart Xi Jinping, signing 32 deals aimed at further shoring up ties between two superpowers unimpressed with Western dominance in the international community.

Key among these agreements was the decision by Putin and Xi to link their countries’ key integration projects: the Russian-led Eurasian Economic Union and China’s Silk Road Economic Belt. “Essentially, we seek ultimately to reach a new level of partnership that will create a common economic space across the entire Eurasian continent,” Putin said of the agreement after the talks.

So long as this deal proves capable of materializing beyond diplomatic rhetoric, it will have long-lasting consequences for international relations at large, analysts interviewed by The Moscow Times said. Furthermore, by agreeing to deal directly with the Eurasian Economic Union, China has moved to dispel speculation that Putin is interested only in restoring Russia’s former Soviet glory, experts said. Finally, the deal reveals a lack of desire on behalf of both countries to create a Cold War-like atmosphere, wherein Moscow and Beijing would find themselves competing against one another for influence in Central Asia.

Both countries come into the deal with plenty to offer the other. China has an enormous construction industry and manpower to match. In view of a decrease in the number of large-scale projects at home, these resources could be used to help build up transportation links and infrastructure throughout Eurasia.

In turn, Russia brings to the table diplomatic experience and security expertise specific to Central Asia.

“The logic of the Russia-China relationship has changed. A strategic partnership between the two has become a reality. Other states will have to learn how to deal with this new reality,” said Alexander Gabuyev, chairman of the Russia in the Asia-Pacific Program at the respected Carnegie Moscow Center think tank.



Fed Facade Fails: Everything Suddenly Questioned
Tyler Durden on 09/22/2015 09:34 -0400
Submitted by Pater Tenebrarum via,

Triangle Breakout Failure?

The stock market’s initial reaction to the FOMC announcement was interesting, to say the least. After receiving the umpteenth excuse as to why rates can still not be raised, coupled with a promise that they eventually will be, the market initially rallied on Thursday. And why wouldn’t it? More free money is good for stocks, right?

The Eccles Building, home of the FOMC – Meetings

The rally only lasted for one hour though. In the final hour of trading, the market sold off and closed in negative territory. On Friday, the sell-off intensified somewhat. By Friday’s close, the SPX had lost more than 60 points from its Thursday intra-day high, a sizable chunk over such a brief time period. Below is a chart showing the triangle from which it initially broke out to the upside (ahead of the announcement) and a Fibonacci grid – resistance was encountered right between the traditional 50% and 61.8% retracement levels.


S&P 500 Index, daily: the breakout from the triangle seems to have failed – click to enlarge.

As we are writing these words on Monday, the index is rallying again from the apex of the triangle to which it had returned as of Friday. So one cannot be certain yet that the breakout attempt will really turn out to be a failure – a clear break below the apex would however strongly indicate that a retest of the August lows was likely in the cards (at a minimum).


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]