Posted at 11:57 PM (CST) by & filed under In The News.

Bill Holter’s Commentary

Can anyone really “live” on just $1,000 per month?  Besides, what happens when the money runs out?

America Hits Rock Bottom: Cities Are Paying Criminals $1000 Per Month “Not To Kill”
Submitted by Tyler Durden on 03/28/2016 16:29 -0400

It is widely known that in the past 6 months there has been a loud debate about helicopter money, i.e., giving out ordinary people (bypassing the banks) money directly printed by the Fed. What is less known is that when it comes to the most despicable underbelly of American society, cash to the tune of $1000 per month is already being “helicoptered” to some of the most brazen criminals living in the US today with one simple condition: “don’t kill people.”

Take the case of Lonnie Holmes, 21, who lives in Richmond, a working-class suburb north of San Francisco and whose four his cousins had died in shootings. He was a passenger in a car involved in a drive-by shooting, police said. And he was arrested for carrying a loaded gun. When Holmes was released from prison last year, officials in this city offered something unusual to try to keep him alive: money. They began paying Holmes as much as $1,000 a month not to commit another gun crime.

This is not just appeasement: it’s sheer idiocy pure and simple, and it’s only just starting.

According to the WaPo, “cities across the country, beginning with the District of Columbia, are moving to copy Richmond’s controversial approach because early indications show it has helped reduce homicide rates.”

If readers are shocked by this “modest payment” it is for a good reason: the program requires governments to reject some basic tenets of law enforcement even as it challenges notions of appropriate ways to spend tax dollars.

In Richmond, the city has hired ex-convicts to mentor dozens of its most violent offenders and allows them to take unconventional steps if it means preventing the next homicide. For example, the mentors have coaxed inebriated teenagers threatening violence into city cars, not for a ride to jail but home to sleep it off — sometimes with loaded firearms still in their waistbands. The mentors have funded trips to South Africa, London and Mexico City for rival gang members in the hope that shared experiences and time away from the city streets would ease tensions and forge new connections.

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Bill Holter’s Commentary

This could be really bad …when business and government clash?

Banks Ordered to Defend Suit Claiming Benchmark Rate Rigging
Jef Feeley / Jennifer Surane

Bank of America Corp., Barclays Plc and a dozen more banks must face investor claims that they rigged a benchmark used in the sales of interest-rate derivatives and other financial instruments.

U.S. District Judge Jesse Furman in Manhattan Monday rebuffed the banks’ request to throw out antitrust lawsuits accusing the institutions of colluding to set ISDAfix, affecting trillions of dollars of financial instruments. The rate is used to set prices on interest-rate swap transactions, commercial real-estate mortgages and other securities.

An Alaska pension fund and other investors raised “plausible allegations that a conspiracy among the defendants existed,” Furman said in a 36-page ruling. He allowed antitrust and breach-of-contract contract claims to proceed to trial, while throwing out other allegations.

Starting in 2009, the banks used electronic chat rooms and other means of private communication to set ISDAfix, typically submitting identical rate quotes, investors said in their suit. They are seeking billions in losses tied to the alleged rate-fixing scheme.

Bill Halldin, a Bank of America spokesman, and Kerrie Cohen, a Barclays spokeswoman, declined to comment on the ruling. RBS officials didn’t respond to requests for comment. Spokespersons for the other banks declined to comment.

Many Banks

Investors also named as defendants Citigroup Inc., Deutsche Bank AG, BNP Paribas SA, HSBC Holdings Plc, Royal Bank of Scotland Group Plc, Credit Suisse Group AG, UBS AG, Goldman Sachs Group Inc., Nomura Holdings Inc., Wells Fargo & Co. and JPMorgan Chase & Co.

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Posted at 10:30 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Mr. Williams shares the following with us.

- U.S. Economic Reality Remains Non-Recovery and Renewed Downturn
- Upside Revision to Fourth-Quarter GDP Growth Was Not Meaningful
- Revisions Were Driven by Soft Data Elements Such as Guesstimated Services and “Other Goods”
- Quarterly Growth Rates in the Broader Gross National Product (1.1%)
and the GDP-“Equivalent” Gross Domestic Income (0.9%)
- Were Weaker than the Headline Gross Domestic Product (1.4%)
- Net of Revisions, GDI Growth Was 0.3%
- Annual Real GDP Growth Still the Weakest Since First-Quarter 2014

“No. 795: Fourth-Quarter 2015 GNP, GDP, GDI ”
Web-page: http://www.shadowstats.com

Posted at 12:43 PM (CST) by & filed under Jim's Mailbox.

Dear CIGAs,

  1. Gold is going to a price that will surpass even what Bill and I see on the upside.
  2. The price discovery mechanism is trending towards physical.
  3. The Comex is ancient history and does not know it.
  4. What is a contract written in paper worth if they do not function?
  5. The super-rich need their own protection and know it. You do not get that kind of money being stupid.
  6. The right time to own gold is any time and in retrospect that will be proven correct.
  7. Cash is for transactions only.
  8. Gold is for wealth protection.
  9. Don’t let the trillionaires run you out of your position in order to increase theirs.

Jim,

You can’t second guess the best. Actually, you can, but do so at your own risk.

CIGA Wolfgang Rech

“The Gold Weighting In Stan Druckenmiller’s Portfolio Is A Warning For Us All
Wednesday March 16, 2016 14:41

When perhaps the best hedge fund manager ever puts 30% of his portfolio into one investment we get very interested here at Hedge Fund Insiders.

We focus exclusively on the investments being made by the best managers in the world.  The most compelling opportunities to us are those where one of these great managers takes an extraordinarily concentrated position.

In this case the investor is Stan Druckenmiller who now has 30% of his portfolio in the SPDR Gold Trust.”

Compounding Money At 30% Per Year For A Quarter Century

For a 25 year period from 1986 through 2010 Stan Druckenmiller was “the man” in the hedge fund world.  His investment performance was untouchable.

The annualized rate of return for his firm Duquesne Capital Management was 30%.  Even more staggering is the fact that he and his investors did not have to endure a single down year over that stretch.

Think of the different investing environments he navigated through.  A technology bubble, a housing collapse, an Asian flu, the list goes on.   Druckenmiller generated incredible returns through them all.

His investment approach can be generally described as being willing to take a big swing when he is certain that a great opportunity is in front of him.  A concentrated portfolio is generally the only way to create the kinds of returns Druckenmiller generated.  The fact that he invested that way and didn’t have any down years is hard to fathom.

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Jim/Bill,

Modern alchemy: Turning 3 cents into 25 cents.

Selling you nothing, for something. The value of a quarter is less than 3 cents, yet gets the government stamp of approval as being worth 25 cents.

This can be done with any coin. Amazing how money is instantly created. That’s all you need to know to see whose side the government is on. It certainly isn’t on the public’s side.

Caveat Emptor!

CIGA Wolfgang Rech

DETERMINING THE TRUE VALUE OF MONEY

Weight of a quarter: 5.67 g

Number of grams per ounce: 28.4 g/oz

Composition of a quarter: 91.7% copper, 8.3% nickel
Amount of metal in a quarter: 5.2g copper,  .47g nickel

Copper price per gram: .0049 cents
Nickel price per gram: .0085 cents

Intrinsic Value of a quarter:  2.9 cents
(2.5 cents of copper and 0.4 cents of nickel)

Posted at 1:12 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

The latest from John Williams’ www.ShadowStats.com.

- Nominal Durable Goods Orders on Track for First-Quarter Contraction, Both Before and After Consideration of Commercial Aircraft Orders
- February Orders Fell versus Downwardly-Revised January Reporting
- On Track for Quarterly and Annual First-Quarter Contractions, Unstable New-Home Sales Held in Smoothed, Low-Level Stagnation
- Existing-Home Sales Tumbled Anew Amidst Unstable Reporting and a Continued Increase in Distressed Sales

“No. 794: New Orders for Durable Good, New- and Existing-Home Sales ”
Web-page: http://www.shadowstats.com

 

Bill Holter’s Commentary

But Martin, you called us idiots when we suggest (with all sorts of anecdotal evidence and proof) the gold market is rigged? Are you suggesting the Treasury market is rigged but they would not dare such an act with gold and silver? This one goes under the category of “C’mon Man”!

Is Goldman Sachs Rigging U.S. Treasury Auctions?
Posted Mar 23, 2016 by Martin Armstrong

Goldman Sachs is at the center of a probe into the rigging of U.S. Treasury Auctions, which was the same allegation that resulted in the Treasury shutting down Salomon Brothers in 1991. I wrote about this incident when Salomon was caught. The fact that such rigging in commodities markets was standard for decades was common knowledge. When the commodity industry took over, the practices of such schemes infested Wall Street. Suddenly, what was standard in pork bellies became standard in the U.S. Treasury auctions.

Salomon’s #1 competitor was Goldman Sachs who realized they could be shut down if they were caught doing the same game. It is my belief that this is when a strategy was developed at Goldman Sachs to do a reverse takeover of government. Suddenly, CEOs of the firm infiltrated politics with huge donations and won the prize of U.S. Secretary of the Treasury twice. Draghi is ex-Goldman and now sits at the head of the ECB. He is also a member of the Troika, as is the PM of Australia. I believe they installed people like Larry Summers and bought the Clinton White House to ensure that Glass Steagall was repealed. I believe they own Hillary right down to her pantyhose. They were involved in creating Greek debt as well as their alleged involvement in Malaysia. The German TV ZDF ran a show exposing how Goldman Sachs was ruling the world. It has been removed from the internet.

The curious fact here is that this is starting to leak out to the mainstream press. This is most likely not a coincidence and will have some ramifications, certainly for Hillary as well as Cruz given they both have connections to Goldman Sachs. Hillary has refused to release her transcripts of speeches at Goldman and Cruz “forgot” that they them lent him money. I have written before about my contest with Goldman Sachs. They kept me in prison and demanded the source code to our model. In today’s world of information, ignorance can only be a matter of choice.

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Anti-Establishment … Then And Now
Garrett Jones

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Jim Sinclair’s Commentary

Here is the difference between Bill and I and the gold haters.

Helicopter Money Takes Flight as Latest Drastic Monetary Idea
Simon Kennedy
March 22, 2016 — 6:01 PM EDT
Updated on March 23, 2016 — 6:38 AM EDT

After more than 600 interest-rate cuts and $12 trillion of asset purchases failed to move the inflation needle enough, central banks may need to head even deeper into uncharted territory.

The way to get the world out of its disinflationary rut could lie in them directly financing government stimulus — a strategy known as deploying “helicopter money” after a 1969 proposal from Nobel laureate Milton Friedman.

Economists at Citigroup Inc., HSBC Holdings Plc and Commerzbank AG all published reports to investors on the topic in the past two weeks, while hedge fund titan Ray Dalio sees potential in the idea. European Central Bank officials are already squabbling about what President Mario Draghi calls a “very interesting concept.”

“We don’t know for certain that ‘helicopter money’ will be the next attempted silver bullet, however the topic is receiving considerably more attention,” said Gabriel Stein, an economist at Oxford Economics Ltd. in London. “The likelihood is reasonably high of some form being implemented somewhere.”

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Bill Holter’s Commentary

A function of the “exit door” shrinking. How do you sell with no one willing to buy?

Liquidity Death Spiral Traps Credit Suisse
By Lisa Abramowicz
Mar 23, 2016 8:46 AM MST

Credit Suisse just got caught up in the same liquidity death spiral that has claimed a growing number of debt funds.

Some of the bank’s traders increased holdings of distressed and other infrequently traded assets in recent months without telling some senior leaders, Credit Suisse CEO Tidjane Thiam said on Wednesday in a Bloomberg Television interview. This is bad on several levels. For one, it highlights some pretty poor risk management on the part of senior officers at the Swiss bank.

But perhaps more important from a market standpoint, it exposes a trap in the current credit market: Traders are getting increasingly punished for trying to sell unpopular debt at the wrong time. The result has been a growing number of hedge-fund failures, increasing risk aversion by Wall Street traders and further cutbacks at big banks.

This all simply reinforces the lack of trading in less-common bonds and loans. At best, this spiral is inconvenient, especially for mutual funds and exchange-traded funds that rely on being able to sell assets to meet daily redemptions. At worst, it could set the stage for another credit seizure given the right catalyst — perhaps a sudden, unexpected corporate default or two, or the implosion of a relatively big mutual fund.

To give a feeling for just how inactive parts of the market have become, consider this: About 40 percent of the bonds in the $1.4 trillion U.S. junk-debt market didn’t trade at all in the first two months of this year, according to data compiled from Finra’s Trace and Bloomberg. While corporate-debt trading has generally increased by volume this year, more of the activity is concentrated in a fewer number of bonds.

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Posted at 3:19 PM (CST) by & filed under Jim's Mailbox.

Jim,

The elites continue their never ending attacks on Trump. These jerks are so convinced they are correct they will never come to understand that the people are ready for reform not business as usual. Once you get the backing of the inside the beltway crew you can say anything you want publically and not fear repercussions.

CIGA Lawrence

Ryan slams ‘ugliness’ in politics amid Trump-driven chaos
By ERICA WERNER, Associated Press

WASHINGTON (AP) — House Speaker Paul Ryan on Wednesday decried ugliness and divisiveness in American politics, delivering a veiled but passionate rebuke to GOP front-runner Donald Trump and the nasty tone of the presidential race.

“When passions flair, ugliness is sometimes inevitable. But we shouldn’t accept ugliness as the norm,” Ryan told an invited audience of congressional interns on Capitol Hill.

“If someone has a bad idea, we tell them why our idea is better. We don’t insult them into agreeing with us,” he said.

“We don’t resort to scaring you, we dare to inspire you.”

The Wisconsin Republican never mentioned Trump’s name or that of any other candidate, Republican or Democratic. But his targets were clear in a sometimes frightful campaign season that’s featured insults, sucker-punches and near-riots as often as substantive policy debates.

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Posted at 8:13 AM (CST) by & filed under In The News.

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Jim Sinclair’s Commentary

Wow, pay to play sure has gotten cheap.

Former Goldman Employee Avoids Prison, Gets $5,000 Fine For Stealing Secret NY Fed Documents
Tyler Durden on 03/22/2016 17:47 -0400

One week ago we were stunned to learn, and report, that as part of the “sentencing” of former NY Fed employee Jason Gross who had admitted to stealing confidential Federal Reserve information and passing it on to his former boss Rohit Bansal, then employed at Goldman Sachs, in hopes of generating goodwill and a comfortable post-Fed job at 200 West, he somehow managed to avoid any jail time and instead was slapped with a draconian penalty: a $2,000 fine…. oh and some community service.

The sentencing judge, U.S. Magistrate Judge Gabriel Gorenstein, explained his ludicrous decision by saying his treatment of Gross sent “a powerful message to others.” Right – a message that if you steal from the Fed and hand over the information to a potential future employer, you will never go to prison but instead will pay a token fine and dig some trenches. And that’s if you get caught.

While we were disgusted with the lack of justice for Gross, we knew we would be even more disgusted once his co-conspirator, former NY Fed and Goldman employee, Rohit Bansal, was sentenced earlier today. We said that “as for Bansal, who also pleaded guilty in November to theft of government property, he is scheduled to be sentenced on Tuesday. We expect he too will avoid prison time.”

This, too, turned out to be 100% correct.

As we predicted one week ago, and as Bloomberg reported moments ago, Rohit Bansal avoided prison time, and instead was sentenced to two years’ probation after pleading guilty to a misdemeanor. U.S. District Judge Gabriel Gorenstein at a sentencing hearing in Manhattan also ordered Bansal to perform 300 hours of community service and pay a $5,000 fine.

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Jim Sinclair’s Commentary

Citizens, wherever he is going do not go. Armed forces, wherever he is going be sure to go ahead of him.

THIRD brush with terror: American Mormon, 19, left with burns and shrapnel injuries in Brussels attack also survived Boston and Paris bombings

Mason Wells, 19, an American Mormon missionary, has survived his third terrorist attack

Mason was in Paris last year during the attacks and a block away from the finish line of the Boston Marathon during the bombings

The teen suffered a ruptured Achilles tendon, injuries from shrapnel and second- and third-degree burns on his face and hands

Despite his injuries, his parents said he is in good spirits and expected to make a full recovery

By Kalhan Rosenblatt
Published: 18:22 EST, 22 March 2016 | Updated: 07:35 EST, 23 March 2016

An American Mormon missionary was injured in the horrifying Brussels airport terrorist attack after having previously survived the Boston bombing and the Paris attacks.

ISIS has claimed responsibility for the double blasts, which left at least 14 people dead at Brussels Airport.

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Jim Sinclair’s Commentary

Forgive them for they know not what they do.

Bank Of Japan Unleashes Yield Curve Chaos: JGBs Inverted At Short- And Long-End
Tyler Durden on 03/22/2016 22:00 -0400

You know you have ‘tinkered’ too much in the machincations of what dealers now call a “dead market” when the world’s largest sovereign bond market is inverted at the short-end and the long-end. The utter folly of Peter Pan policy has sent 10Y JGB yields below the BoJ’s overnight call rate for the first time ever…

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Japan’s 10-year bond yield dropped to a record -12.5bps Friday, falling below the the negative deposit rate introduced by the Bank of Japan last month, after the central bank’s operation to buy long-term debt met the lowest investor participation on record. Yields on government debt have tumbled since the BOJ announced Jan. 29 that it would start charging 10bps interest on some deposits held at the bank starting Feb. 16.

40Y Yields are down a stunning 90bps since the BoJ went full retard… to record lows.

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AND yields are so low that demand for 40Y JGBs has driven its yield below the 30Y yield by the most ever…

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As Bloomberg notes, Japan’s long-term bond yields extended their push to record lows, driven by a shortage as the central bank buys record amounts of securities.

Investors are hoarding the debt because it still pays interest, while shorter maturities have negative yields.

“We’re in a situation where traders have no stock of the bonds,” said Hideo Suzuki, the chief manager of foreign exchange and financial products trading at Tokyo-based Mitsubishi UFJ Trust & Banking Corp.

A double inversion – we are sure just a little more debt monetization and the ‘deflation mindset’ will be vanquished.

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Posted at 9:23 PM (CST) by & filed under In The News.

Bill Holter’s Commentary

Nine charts so simple even a caveman can understand!

Obama’s latest fraud: ‘Economic recovery’ disproven in just 9 charts
Numbers demonstrate failure of administration’s policies
Jerome R. Corsi

NEW YORK – The Federal Reserve Bank of St. Louis updates quarterly a set of nine easy-to-understand charts that demonstrate how Obamanomics, the economic policies of the Obama administration, have failed to produce real economic benefits for the American people.

The nine charts illustrate that Obamanomics has dramatically increased both consumer and government debt; driven U.S. workers out of the labor force in a manipulation of statistics designed to allow the Bureau of Labor Services to report an unemployment rate that is artificially low; increased health-care costs despite the passage of the Affordable Care Act; and produced a questionable economic recovery, with U.S. growth rates still hovering at near-recession levels of economic stagnation.

This article is an update of a report published by Rachel Stoltzfoos, “Obama’s Economy in 9 Charts,” in the Daily Caller on Oct. 30, 2015. In September 2015, ZeroHedge.com introduced the concept of selecting nine charts to describe the Obama economy from the dozens of charts produced and updated by the Federal Reserve Bank of St. Louis.

Student loans

The first chart tracks student loans, making it clear that as of the third quarter 1990, there were no outstanding student loans. At the beginning of the Obama administration, in the first quarter of 2009, student loans stood at $146.6 billion. From there, the graph rises steeply. By the fourth quarter 2015, the last quarter for which the Federal Reserve Bank of St. Louis charted the data, student loans had risen to $945.6 billion.

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The origin of the student loan program can be traced to Bill Clinton signing the Omnibus Reconciliation Act of 1993, which set up a phase-in of a direct government lending for student loans that replaced the program of government guarantees of private student loans arranged largely through banks, beginning with the National Defense Education Act of 1958 and the Federal Family Education Loan Program in 1965.

In signing the Health Care and Education Reconciliation Act of 2010, President Obama engineered a government takeover of the student loan program, so that today all student loans are direct government loans.

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Jim Sinclair’s Commentary

Too bad the weather was rather pleasant this winter. If it were not this flop would be blamed on it.

US Manufacturing PMI Misses By Most Since 2013, Presidential Election Blamed
Tyler Durden on 03/22/2016 09:55 -0400

Given the extraordinary jumps in several regional Fed surveys, hope was rife that US Manufacturing PMI’s flash print would jump… it didn’t. Hovering near multi-year lows at 51.4, PMI missed expectations of 51.9 by the most since Aug 2013. With record highs in wholesale inventories, Markit claims that “pre-production inventories decline at the steepest pace in over 2 years.” The blame for this plunge: dollar strength, weak global demand, and Trump.

Not recovering…

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As Markit explains,

Manufacturers signalled a further reduction in their inventory volumes in March. The latest fall in stocks of finished goods was the fastest since November 2015, while pre-production inventories declined at the steepest pace for over two years.

“US factories continue to endure their worst spell for three and a half years.Headwinds include reduced spending by the struggling energy sector, the strength of the dollar, persistent weak global demand and growing uncertainty caused by the looming presidential election.

“While some comfort might be drawn from the marginal rise in the PMI compared to February, the rate of growth remains worryingly weak and the lack of a stronger rebound is a disappointment, given that many companies reported bad weather to have hit activity in the first two months of the year.

“The persistent weakness seen in March therefore ends a disappointing quarter for manufacturing. When viewed alongside the similar downturn seen in the sister services PMI in February, the survey data are pointing to very modest GDP growth in the first quarter. Hopes are therefore pinned on a rise in Thursday’s Services flash PMI for March to reassure that the economy is not completely stalling.”

Which signals GDP weakness ahead…

“The persistent weakness seen in March therefore ends a disappointing quarter for manufacturing. When viewed alongside the similar downturn seen in the sister services PMI in February, the survey data are pointing to very modest GDP growth in the first quarter. Hopes are therefore pinned on a rise in Thursday’s services flash PMI for March to reassure that the economy is not completely stalling.”

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Posted at 5:44 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

QE has many different faces but one thing is absolutely constant. In a global economy QE anywhere is QE everywhere in terms of the final outcome.

CORPORATES LINE UP TO CASH IN ON ECB FUNDING

Paris (AFP) – The European Central Bank’s plan to buy corporate bonds to help the eurozone economy is boosting the private-sector debt market which promptly responded with a new record-sized company bond.

With interest rates near or below zero and few other monetary policy tools left in its arsenal, the ECB announced earlier this month that it would begin buying non-bank corporate bonds in addition to the government bonds it has been purchasing to stimulate the economy.

Less than a week after the ECB’s announcement, and months before it is to actually buy any bonds, a new record for a euro-denominated corporate bond issue was set on Wednesday when brewer Anheuser-Busch InBev said it was seeking to raise 13.25 billion euros ($14.9 billion).

“In our view this highlights the current positive backdrop for primary issuance induced by the ECB’s new easing measures” and particularly the new corporate bond programme, credit analysts at Dutch bank ING wrote in a note to clients.

The corporate debt market has already benefitted indirectly as ECB purchases of government bonds have pushed investors into the corporate market, lowering borrowing rates.

In addition to the corporate bond purchases, the ECB also announced earlier this month a programme to effectively pay banks if they step up their lending.

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Jim Sinclair’s Commentary

One month Hawk, the next month Dove. During each month Fed representatives declare their program is to the contrary. The message is clear. Our decisions makers are without any clear direction at all.

WEAKEN THE DOLLAR — THE DOVISH FED’S HIDDEN AGENDA?

Washington (AFP) – In lowering its likely path of future interest rate increases this week, the Federal Reserve pushed down the dollar, perhaps aiming to ease strains caused by clashing monetary policies.

Several analysts and economists interpreted the language as an effort by the Fed to rein in the dollar’s gains against other currencies. A strong dollar weighs on import prices, thus keeping US inflation in check, and encourages volatility on the financial markets.

Fed Chair Janet Yellen acknowledged the importance of the dollar in policy making at her post-FOMC meeting news conference Wednesday.

But, questioned about influence from the divergence in monetary policies, she insisted: “It does not mean that monetary, US monetary policy is somehow constrained in a way that makes it impossible for our monetary policy to diverge from policies abroad.”

“To any conspiracy theorists it’s all become quite clear. There is a global coordinated central bank effort to weaken the (dollar) in play,” said Chris Weston, chief market strategist at IG Markets, evoking a secret “Shanghai Accord” at the G20 meeting of finance chiefs last month.

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Bill Holter’s Commentary

Free and fair markets! Asking the “master” how it’s done.

Exclusive: China central bank to Fed: A little help, please?
Mon Mar 21, 2016 3:17pm EDT

Confronted with a plunge in its stock markets last year, China’s central bank swiftly reached out to the U.S. Federal Reserve, asking it to share its play book for dealing with Wall Street’s “Black Monday” crash of 1987.

The request came in a July 27 email from a People’s Bank of China official with a subject line: “Your urgent assistance is greatly appreciated!”

In a message to a senior Fed staffer, the PBOC’s New York-based chief representative for the Americas, Song Xiangyan, pointed to the day’s 8.5 percent drop in Chinese stocks and said “my Governor would like to draw from your good experience.”

It is not known whether the PBOC had contacted the Fed to deal with previous incidents of market turmoil. The Chinese central bank and the Fed had no comment when reached by Reuters.

In a Reuters analysis last year, Fed insiders, former Fed employees and economists said that there was no official hotline between the PBOC and the Fed and that the Chinese were often reluctant to engage at international meetings.

The Chinese market crash triggered steep declines across global financial markets and within a few hours the Fed sent China’s central bank a trove of publicly-available documents detailing the U.S. central bank’s actions in 1987.

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