Posted at 5:04 PM (CST) by & filed under General Editorial.

clip_image002

Dear CIGAs,

What the heck is happening to markets all over the world?

The answer to this is … there are no markets. There are no legitimate markets from bonds to Gold.

Computers are trading with computers and that is all there is. These computer run markets are virtual markets and that is all there is. The computer run markets create prices which are so virtual that there its no depth to any market anywhere on anything. Volatility goes wild as computers overtake markets. Central banks, lacking no practical tools, are pushing the panic button.

Today, the Japanese bond market clearly over ran their control protocols and breached established parameters. A strong close at 3% or higher on United States ten year bonds could cause a leap in rates due to the fact that there are few real position takers. This is the result of central banks creating artificial market rates which are so low they are an insult to an investor’s understanding of market fundamentals.

All of the central banks of the industrialized world have stepped out onto thin ice and unknown territory where there is no place to safely move and no room to breathe. This is the bomb that could detonate in any or all markets at any time.

Gold is trading in India just below $3,000 USD. This could have been caused by a mistake between the central banks of India and the US Federal Reserve. This mistake is devastating for India economy while the best advertisement gold has ever had.

Bonds markets are doing strange things in the EU because of illiquidity and factors in the Euro/dollar market which are independent of all other considerations.

Stock markets have made record highs on no volume so once again illiquidity is raising its very dangerous head.

We will go into more detail on all of these points but for now, I urge you to do the following to the degree possible:

Hold your precious metals positions and remain calm.

Eliminate all or as much margin (credit) in anything, anywhere.

Have a least a month worth of cash at home.

Put all your securities into direct registration (DRS).

Do the basics of my recent articles on being prepared.

Situations may become more difficult but we can Be Prepared.

Jim

Posted at 4:14 PM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

Shout it from the rooftops……

If a Central Bank can’t produce an audited report of the serial numbers of its gold bars, then it’s gold holdings don’t exist!

I can’t believe the financial community is that gullible!

CIGA Wolfgang Rech

European Central Bank gold reserves held across 5 locations. ECB will not disclose Gold Bar List.
November 17, 2016

The European Central Bank (ECB), creator of the Euro, currently claims to hold 504.8 tonnes of gold reserves. These gold holdings are reflected on the ECB balance sheet and arose from transfers made to the ECB by Euro member national central banks, mainly in January 1999 at the birth of the Euro. As of the end of December 2015, these ECB gold reserves were valued on the ECB balance sheet at market prices and amounted to €15.79 billion.

The ECB very recently confirmed to BullionStar that its gold reserves are stored across 5 international locations. However, the ECB also confirmed that it does not physically audit its gold, nor will it divulge a bar list / weight list of these gold bar holdings.

Questions and Answers

BullionStar recently put a number of questions to the European Central Bank about the ECB’s gold holdings. The ECB Communications Directorate replied to these questions with answers that appear to include a number of facts about the ECB gold reserves which have not previously been published. The questions put to the ECB and its responses are listed below (underlining added):

Question 1: “The 2015 ECB Annual Report states that as at 31 December 2015, the ECB held 16,229,522 ounces of fine gold equivalent to 504.8 tonnes of gold. Given that the ECB gold holdings arose from transfers by the respective member central banks, could you confirm the storage locations in which this ECB gold is currently held (for example at the Bank of England etc), and the percentage breakdown of amount stored per storage location.

More…

Posted at 12:11 PM (CST) by & filed under General Editorial.

Dear CIGAs,

This essay is especially relevant and of great importance now.

Jim

Notes From Underground: The Answer Is, “We’ll See”
November 10, 2016

The experts are out with more ridiculous forecasts about the Trump victory and what it means for the various aspects of the financial markets. But let me toot my own horn for a moment: The trading outcomes for a Trump victory were on target, except for the dollar rally sustaining itself, but that is something I will be analyzing as we go forward. It amazes me how the media rushes back to the same forecasters who have so badly predicted many of the major political outcomes of the last two years. An important book for my readers is Tetlock’s “Superforecasting,” which makes a very powerful argument about following the experts.

But the movement in the STEEPENERS has been “breathtaking.” I want to go on record as saying I disagree with Stan Druckenmiller’s long-term view on the GOLD. This now becomes GOLD versus all fiat currencies so LONG GOLD versus yen, euro, Swiss and anything else as the central banks have started down a dangerous path since the ECB, BOJ and BOE continue on the road of large-scale asset purchases, or QE. The only way this trade will turn is if SHORT-TERM RATES GO TO REAL YIELDS ON THE SHORT END OF THE CURVE. CURVE STEEPENERS WILL NOT HURT ASSETS BECAUSE THEY WILL BE FUNDED WITH ULTRA CHEAP SHORT TERM BORROWING.

There are many things afoot in the global financial world as politics becomes the center piece of financial decisions. We have the Italian referendum on December 4, the FOMC mid-month and the coming French elections. So many moving parts, and, of course we have the actual economic data, which has been tepid around the world. The Trump headwind will give the FED an excuse to keep rates on hold as Yellen and Brainard seek to be on guard to see to it that WAGES run hot.

More…

Posted at 1:05 PM (CST) by & filed under In The News.

clip_image002

Bill Holter’s Commentary

Now, can you imagine where this country would be in 4 years had not “We the People” risen up? It will not be a bed of roses from here by any stretch because the debt is carved in stone, but as I wrote immediately after the election …”it was a vote FOR or AGAINST the RULE OF LAW!” These are the “tolerant” ones?!

From ‘Rape Melania’ To Mocking Violent Beat Downs Of White People, The Extreme Cruelty And Mental Illness Of The Left Has No Place In A Civilized Society
November 15, 2016

It’s now obvious to nearly every reasonable person that the cruelty, lawlessness and mental illness being demonstrated by those on the political left has no place in a civilized nation.

Not only did America-hating leftists carry a RAPE MELANIA sign to an anti-Trump protest, they made the hashtag #RapeMelania go viral on Twitter, where the leftist tech corporation allowed it to reach the top of its trending hashtag chart.

Yes, the same Twitter that banned numerous accounts of people who criticized Hillary Clinton’s health problems openly allowed users to share the “rape Melania” hashtag. Obviously, this is because people on the left are so compassionate about women, right? Sure it is…

More…

Posted at 11:59 AM (CST) by & filed under Bill Holter.

In response to Federal Reserve & Clintons Doomed-Clif High
Posted November 14, 2016

Jim/Bill,

I can’t wrap my head around the housing call.

“In short, High says your home will go down in value while you are paying much more for supplies to live in it.”

If the cost of a front door or new siding approaches the cost of a home, wouldn’t the home price also rise?

Put another way, if the cost of a snickers bar approaches the cost of a home, wouldn’t that force the home price higher?

Unless, of course, the carry costs of the home (insurance, RE Taxes, utilities, etc.) become so onerous that home affordability drops.

Am I correct?

Another thing, the following flies above my head. No clue as to the reasoning.

“They are worried about the destruction of all of this debt by dollars pouring back into the U.S. The debt is actually being paid off by all this money coming back into the U.S. It’s not an actual increase of actual cash. It is a destruction of all the derivatives . . . It is debt destruction for sure. “

Any simplification?

Yours,

CIGA Wolfgang Rech

Wolfgang, I believe he speaks to the ability of others to purchase your home. It does not matter what it costs to build something if no one can afford to buy it…

Bill

Bill has explained it well. Might I add if your house is selling in dollars, what are they going to be worth?

Jim

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

Dear CIGAs,

As we spoke of in our last interview and my last article, “meet Judy Shelton”.  Please read the following as Ms. Shelton appears to be part of the Trump administration.  Could she be senior economic advisor, or even Fed chair?  Who knows but she is a sound money advocate and has her head screwed on correctly.  If you do not know of her now, I believe you soon will!

Bill

Posted at 11:50 AM (CST) by & filed under In The News.

facebook_1478863148730

Jim Sinclair’s Commentary

Highest since the last bubble burst. Let’s crank those interest rates and watch the black hole swallow housing.

U.S. Foreclosure Activity Increases 27 Percent in October
November 8, 2016

ATTOM Data Solutions, curator of the nation’s largest fused property database, today released its October 2016 U.S. Foreclosure Market Report™, which shows a total of 105,481 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — in October, up 27 percent from a 129-month low in September but still down 8 percent from a year ago.

October marked the 13th consecutive month where U.S. foreclosure activity decreased on a year-over-year basis, but the month-over-month increase in October was the biggest monthly increase since August 2007.

Counter to the national trend, 28 states and the District of Columbia posted year-over-year increases in overall foreclosure activity in October, including New York (up 10 percent), Pennsylvania (up 20 percent), Ohio (up 4 percent), Georgia (up 22 percent), Virginia (up 15 percent), Massachusetts (up 11 percent), Arizona (up 17 percent), Indiana (up 3 percent), Wisconsin (up 3 percent), and Colorado (up 64 percent).

More…

Jim Sinclair’s Commentary

This will get delayed. Instability in Italy is always bad.

Italy Referendum Result Could Send Shockwaves Through Markets And DESTROY Europe
November 14, 2016

Analysts believe the outcome of the ballot on constitutional reform could have massive global implications.

With many European leaders already coming under severe pressure from anti-EU parties ahead of elections next year the significance of the Italian result is huge.

Defeat for Italian Prime Minister Matteo Renzi could lead to even deeper social turmoil in countries already struggling with austerity, immigration problems and a growing contempt for Brussels.

More…