Posted at 2:24 PM (CST) by & filed under Bill Holter.

Dear CIGAs,

We will no doubt look back upon the current era as the “crime of the century” for so many different reasons. Actually, current times represent the worst financial crimes of ALL TIME! The various crimes and how they are operated are too numerous to list and would probably fill a three volume set of books, let’s concentrate on just one. Central to everything is the U.S. issuing the global reserve currency by fiat knowing full well it truly means “non payment”. The absolute cornerstone to the dollar retaining confidence and thus value has been the suppression of the price of gold.

Before getting to specifically what I’d like to point out, let’s look at a couple common sense points which beg questions. How is it China has been importing 2,400 tons of gold over the past two and a half years without any upward push to the gold price? This amount equals almost EXACTLY the TOTAL amount of gold mined annually around the world! How is it possible that ALL production has been purchased by China and yet the price goes down? The answer of course is quite simple unless you purposely close your eyes or disingenuously “apologize”.

The argument from the apologists is that “traders” on COMEX and LBMA believe gold will go lower so they are sellers and this is where the downward pressure has come from. You as a reader already know that much of the “selling” is done at midnight (or off hours) in the U.S. which is the lunch break in Asia, China specifically. The massive selling (as much as total global production in less than two trading days) has usually taken place during off hours when the volume is lightest and price moves the most, especially with any significant volume. The result has been gold now trades at or very near the cost of production and silver well below production costs. None of this is new, only a refresher. The reaction in the actual physical markets is backwardation, premiums over spot prices and actual shortages. Put simply, low price has brought out additional physical demand.

To the point, the following is a snapshot of inventory movement (or the lack of) within the COMEX gold vaults this month:

Initial standings
Oct 21/2015



Withdrawals from Dealers Inventory in oz


Withdrawals from Customer Inventory in oz  nil


Deposits to the Dealer Inventory in oz


Deposits to the Customer Inventory, in oz


No of oz served (contracts) today

13 contracts
1300 oz

No of oz to be served (notices)

650 contract (65,000  oz)

Total monthly oz gold served (contracts) so far this month

364 contracts

36,400 oz

Total accumulative withdrawals  of gold from the Dealers inventory this month


Total accumulative withdrawal of gold from the Customer inventory this month

184,991.8  oz

Only 185,000 ounces have been withdrawn from the customer (eligible) accounts and ZERO from the dealer (registered) accounts. What is not shown is there have been ZERO dealer deposits and ONLY TWO customer deposits in all month. One of 32,150 ounces and another of just over 300 ounces for the entire month! It is clear the large entry was a “kilo” deposit of one ton even though COMEX deals, quotes and supposedly delivers in ounces.

Why is this interesting you ask? Because at the beginning of the month there were over 10 tons worth of contracts standing for delivery with dealers only having just over 5 tons available to deliver. This figure has now dropped to about 3 tons standing …but the amount of registered gold for delivery is right where it was at the beginning of the month? How could this be if gold has been delivered? Is there a “secret stash” where gold is being delivered from or has “settlement” occurred using cash?

I have my own idea as to why no gold at all has entered the dealer’s vaults, it is a symptom of the disease. If gold was so plentiful we should have seen all sorts of movements of gold into dealer accounts to support deliveries, we have seen none, zero, NADA! Remember, October is an active delivery month which originally had over 10 tons standing for delivery versus 5+ tons available. If we go out to Dec., this contract has open interest representing some 11+ million ounces … while dealers claim only 182,000 to deliver!

Yes, yes, the open interest ALWAYS collapses and delivery “always gets made”. But doesn’t it seem strange to you that a market with less than $200 million worth of inventory is the pricing to a $5 trillion monetary asset? In comparison, a single ranch in Texas just got sold for nearly 4 times the size of what COMEX claims they have available for delivery. It used to be the tail was wagging the dog. Now, COMEX inventory has been bled down so far it can be said just a few hairs on the tail is wagging the dog!

Surely I will receive comments like “this will go on forever” or “don’t worry, nothing ever comes of these delivery months”. It should be pointed out, as it stands right now a single trade of 1,820 contracts represents the entire deliverable inventory and we have seen on multiple occasions where 3,000-6,000 contracts have been sold (in one trade) to collapse the price. I ask, how does COMEX keep this in the box when something very “REAL” happens? “Real” meaning a mere push of our financial system by China? Or a military shove by Russia? Or something as simple as a “truth bomb” being released on the American public? Can an inventory of less than $200 million fiat dollars make good and keep hidden the core crime to the crime of the century? Is this why China is moving toward a physical exchange? Once they “take it out …they will take it up”!

Standing watch,

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

Posted at 2:21 PM (CST) by & filed under Jim's Mailbox.


Does Money Supply include all the below?

-Equity investments
-Bond investments
-Credit investments
-Derivative investments

If not, if it is only cash and deposits held in banks (and those are slowly being eliminated), then wouldn’t it be impossible to track the velocity and supply of money in order to judge inflationary pressures?

It seems all money is being diverted into risk assets.

Is true money supply, as an indicator, dead?

CIGA Wolfgang Rech

Dear Wolfgang,

This is a complex item that we have no way of changing. The BLS and Fed will continue to report their data on flawed metrics as you and I see. In this administration it will not change.

Your conclusions are totally correct, but what do we do about the false data we inundated with every day?

The money went to the banks and has disappeared into the monstrous debits created by failed OTC derivatives that still exist. The debits covered transformed the program cash into the vaults of the winners on the derivative and was reported by them as trading profits. It thereby created the 1%.

The worldwide financial entities were broke and are still if “mark to market” accounting was reinstated by the gatekeepers on truthful accounting who have sold their souls, also known as the FASB.

These falsehoods will not stop the economic reactions to the truth, just slow it down. The result is certain, and will occur and are now taking form.

Stay the course and do not allow the hired hands of the opposition scare you out here. Payment can be made in many ways including acceptance by the elite they strain to become.

Remember them all when Gold closes over $2100.


Banks Are Now Rejecting Deposits… Is a Cash Ban Next?
Submitted by Phoenix Capital Research on 10/22/2015 10:11 -0400

The Central Banks hate physical cash. So much so they there will likely try to ban it in the near future.

You see, almost all of the “wealth” in the financial system is digital in nature.

1) The total currency (actual cash in the form of bills and coins) in the US financial system is a little over $1.36 trillion.

2) When you include digital money sitting in short-term accounts and long-term accounts then you’re talking about roughly $10 trillion in “money” in the financial system.

3) In contrast, the money in the US stock market (equity shares in publicly traded companies) is over $20 trillion in size.

4) The US bond market  (money that has been lent to corporations, municipal Governments, State Governments, and the Federal Government) is almost twice this at $38 trillion.


Posted at 2:13 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Good for gold going forward.

Oct 22, 2015 – 4:21 PM GMT
by Ewa Manthey

China Construction Bank (CCB) will join the twice-daily electronic auction process to set the benchmark price of gold on October 30, Intercontinental Exchange (ICE) said in a statement on Thursday.

CCB is the second Chinese direct participant to join the LBMA Gold Price, following the approval of Bank of China in June.

This brings the number of participants to 12 alongside JP Morgan Chase Bank, Scotiabank, HSBC, Société Générale, UBS, Barclays and Goldman Sachs in the LBMA Gold Price, which formally replaced the near-century-old London Gold Fix on March 20.

The twice-daily gold fix, which had been in operation since September 12, 1919, came under increased regulatory and media scrutiny. A third-party operator was seen as a critical step in modernising the image of the process, while also providing enhanced transparency and compliance with legislation.

ICE subsidiary ICE Benchmark Administration (IBA), which was established in April 2013 to administer benchmarks, now provides the price platform, methodology and overall administration and governance for the LBMA gold price.

China, the world’s biggest producer and consumer of bullion, is seeking greater influence in international commodities pricing.



Jim Sinclair’s Commentary

It is a global marketplace that we live and invest in. Not just the US and EU.

US Dollar Dumped Against Asian FX As Releveraging Chinese Send Margin-Debt To 6-Week Highs
Tyler Durden on 10/22/2015 21:39 -0400

Chinese stocks are not as exuberant as European, Japanese (which are rolling over), and US markets at the open as they cling to unchanged for the day and week (despite margin debt rising to a six-week high). The main event in AsiaPac trading appears to be a huge re-entry into the EUR-ANY-EM-FX carry trade as The USDollar gets pummeled against Asian FX (despite EUR weakness). PBOC weakened the Yuan fix by the most in 8 days to its lowest in 2 weeks.

Japanese stocks soared during the US session but are fading at the open…


Chinese stocks flat in the pre-open…


Even as Margin Debt hits a 6-week high…



Posted at 10:20 AM (CST) by & filed under In The News.

Goldman is getting nervous: “There are significant risks to our forecast for Gold price weakness”
Tyler Durden on 10/21/2015 20:17 -0400

When it comes to assets, economists, Wall Street, and central planners love them all… except one: gold. Forget about Bernanke’s hilarious sworn testimony that gold has “value only due to tradition”, and recall Mario Draghi’s QE announcement in December 2014 when asked what sorts of assets should be included in QE, his response: “we discussed all assets BUT gold.”

Well of course the ECB will never buy gold – by its very nature, the precious metal stands for everything the legacy insolvent regime patched together with the superglue of money printing central-bankers, hates: prudent use of money and leverage, living within one’s means, and most importantly, saving not spending. Gold applied to the current regime where the world is drowning in about 3.5 times more debt than GDP would mean wiping out trillions in equity value that should not exist.

It also makes impossible such monstrous abortions as $1 quadrillion in global derivatives which, like a house of cards, is only as strong as the weakest counterparty, and is why central banks around the globe have gone all in on the Greenspan/Bernanke/Yellen/Draghi put, and will never allow another major bank to fail again.

Ironically, while the “very serious”, if laughable and totally discredited people, take every opportunity to bash gold, they are quietly buying up all the physical gold they can find, whether it is in London (where the local vaults are practically empty), or in Beijing or Bombay, which are the largest natural sources of demand for physical gold.

Lately these same “serious” people are starting to get nervous, because while most other “commodities” have seen their prices plummet in the biggest crash since Lehman, gold just went green for the year. And the last thing the financial system, already teetering on the edge of global recession, can handle is another massive momentum wave out of “intangible” assets and into very real gold, like what happened in 2010 and 2011 before the BIS ended gold’s meteoric rise in September 2011.

Enter Goldman, which moments ago admitted that while its “base case is still for higher US real interest rates, lower gold”, it may be wrong adding that “while our base case remains for higher US real rates and lower gold prices, there are significant risks that our forecast for gold price weakness is pushed out, should the Fed surprise us and remain on hold in December.”


Posted at 10:59 AM (CST) by & filed under Bill Holter.

Dear CIGAs,

For many years I have written about “debt saturation” being the ultimate problem and the end game to the current system. Back in 2007 I wrote how we were facing a solvency problem rather than a liquidity problem. When the Treasury and Fed treated the 2008 debacle with more liquidity, I was adamant they were treating the wrong disease with the wrong cure. Fast forward to present day, we should soon see what the “disease” actually was, how incurable it now is and how devastating to our way of life it will be.

The following charts do not in any way say “this is it”, meaning the saturation level is here and now. They do however show you what the problem is and how we have gotten to this point in time.


What does tell you the problem is here and now are your own eyes. If you are willing to look, you will see various European nations without the ability to issue more debt while Japan’s debt to GDP ratio has long ago passed the banana republic threshold. Look around the United States and you will see various cities and states where revenue can no longer support even debt service, never mind pay down any principal. If you look at the federal government debt, you will see foreigners are now sellers. The big buyer is the Fed itself. This is THE definition of monetization. There is no other alternative.

The problem with “debt saturation” is this, all fiat systems (Ponzi schemes) must have new investors in order to “grow”. This is what is meant when you hear the word “reflate”. The reflation process is always funded by new waves of borrowing. For years we would see various economic sectors passing the baton of reflation until there were few left with the ability to borrow more. Then we saw the real estate markets get to a point where more debt could not be added. Finally, various sovereign governments and their central banks picked up the baton in a final reflation. We have particularly seen this since 2008 with the various fiscal spending plans and quantitative easings.

One other area to mention is oil. Oil price and usage has been very important to the U.S. Federal Reserve Note. Since all oil has been priced and settled in dollars, this was “abnormal” demand but still huge “petro dollar” demand nonetheless! We now have two things happening in the oil market, slightly lower usage because of weak economic activity and MUCH lower prices. This will act to lower demand and velocity for the dollar.

None of the above should be anything new for readers. If you think past where we are now then you understand Richard Russell’s term “inflate or die” is where we are headed. The ability to reflate is now gone nearly all over the planet! Everything has already been levered, re levered and levered again to the point where no un hypothecated collateral is left …and even with zero percent interest rates debt service is becoming overwhelming. So what is left?

What comes last as a final solution is a REFLATION of central bank balance sheet values. Ask yourself this, how “rich” or how much wealth would central banks have if they valued their gold at $10,000 per ounce or higher? Or MUCH HIGHER!? The rest of the world can already see the Western financial system is at the end of their ropes. Bretton Woods which started out as a gold standard and morphed into a con game has failed. Should the world go back to gold (at vastly higher prices), central banks and treasuries who do actually hold gold will be able to avoid “bankruptcy”. Some, with enough gold will even be able to reflate!

I guess the best way to finish this piece is by asking a few questions that drive home the answer. If as central banks have recently said is true, “central banks can no longer save the world”, then who or what will? If the central banks are actually in trouble (they are), who will save the central banks? I submit to you, the central banks really and only have one way out with a caveat. This one way out is to reflate the only thing you have left that has not been inflated, the GOLD! By revaluing gold to levels far above where individuals can buy it, the banks will elevate themselves above their peon citizens grasp. They “fill” the black holes in their balance sheets AND allow themselves a way to continue the game of reflation!

I did mention there was one caveat. This is all dependent on whether or not the treasury or central bank ACTUALLY HAS GOLD to reflate! This I believe is going to create huge problems in the West as gold has been flowing from West to East. It seems to me, the East is beginning to do as they please and make their own rules in spite of U.S. wishes. Is this because “they have the gold?”

Standing watch,

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

Posted at 10:57 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Sure, this administration will do whatever they wish.

Iran’s Supreme Leader approves nuclear deal, orders govt implementation on conditions
Published time: 21 Oct, 2015 11:10Edited time: 21 Oct, 2015 11:53

Iran’s Supreme Leader Ayatollah Ali Khamenei has approved the nuclear deal between Tehran and world powers, ordering it to be implemented subject to certain conditions, his official website says.

In a letter to President Hassan Rouhani, Iran’s highest authority said the US and European Union should clearly announce the elimination of sanctions against Tehran. Khamenei has warned that the deal has several structural weak points.

Khamenei adds in his letter that any remarks, suggesting that sanctions against Iran will remain in place for some reason, would go against the agreement reached between Iran and the P5+1 group of countries (the US, UK, France, China and Russia, plus Germany) over Tehran’s nuclear program.

“Any comments suggesting the sanctions structure will remain in place or [new] sanctions will be imposed, at any level and under any pretext, would be a violation of the JCPOA,” the letter states.



Jim Sinclair’s Commentary

They have officially taken the L out BLS.

The BLS Just “Revised” Away One Full Month Of Job Gains For Year Ending March 2015
Submitted by Tyler Durden on 09/17/2015 10:16 -0400

As if there was not enough negative data for the Fed to contend with, and make the case for a rate hike delay already, moments ago the BLS released the preliminary estimate of its “annual benchmark revision to the establishment survey employment series” for the 12 month period ended March 2015.  While the final report will not be released until February 5, 2016, with the publication of the January 2016 Employment Situation news release, today’s release will give the Fed yet another reason for concern as the BLS just admitted that at least 208K total jobs (and 255K private jobs) were overestimated in the year ending March 2015.

This is equivalent to eliminating nearly one full month of job gains in the specified 12 month period, and spread across the various months, would have meant a constant series of NFP headline misses instead of consensus beats, likely leading to a far more adverse algo kneejerk reaction on the first Friday of every month.

From the BLS:

Each year, the Current Employment Statistics (CES) survey employment estimates are benchmarked to comprehensive counts of employment for the month of March. These counts are derived from state unemployment insurance (UI) tax records that nearly all employers are required to file. For National CES employment series, the annual benchmark revisions over the last 10 years have averaged plus or minus three-tenths of one percent of total nonfarm employment. The preliminary estimate of the benchmark revision indicates a downward adjustment to March 2015 total nonfarm employment of -208,000 (-0.1 percent).

Preliminary benchmark revisions are calculated only for the month of March 2015 for the major industry sectors in table 1. The existing employment series are not updated with the release of the preliminary benchmark estimate. The data for all CES series will be updated when the final benchmark revision is issued.

Table 1 shows the March 2015 preliminary benchmark revisions by major industry sector. As is typically the case, many of the individual industry series show larger percentage revisions than the total nonfarm series, primarily because statistical sampling error is greater at more detailed levels than at an aggregated level.

And here is the latest quandary for the Fed which mercifully will be able to ignore this latest confirmation the economy has been slowing down substantially in the past year, well above what the various other economic indicators have already suggested.



The September Jobs Report Was Even Worse: U.S. States Lost A Total Of 22,000 Jobs
Tyler Durden on 10/20/2015 15:23 -0400

Remember that September jobs report when the US supposedly only added 142,000 jobs, which was so bad it sent stocks soaring the most in years?

As it turns out the sum was far greater than the parts, because according to today’s BLS breakdown of jobs by state, not only did more than half, or 28, states lose jobs in September, but the total number of jobs losses, at 120,000, was about 20% more than the cumulative job gains of 99,000.

How that -21,000 total job loss when summing across all states compares to the alleged gain of 143,000 jobs at the consolidated level reported two weeks ago, we’ll leave to the reader to decide, suffice to say that any and all data coming out of the BLS and not making sense, has become the norm.

Also not making any sense, is the state with the most purported job gains, because while firing tens of thousands of oil patch workers, Texas mysteriously – according to the BLS – added 26,600 jobs. The gains occurred in a range of industries, including retail, shipping, education, health care, and hotels and restaurants. Or even more low-paying jobs used a “plug” filler by the BLS to offset the real collapse of America’s high-paying manufacturing jobs. New York added the second-most, with 12,000, which is also curious considering all banks but Goldman reported they have continued to layoff tens of thousands of workers.



Jim Sinclair’s Commentary

You have to admit for those that write on current events this visual is scary. Will the laws of Sedition be re-established in practice?

Former US drugs agent sentenced to 6 1/2 years in jail for stealing Bitcoins in Silk Road probe
Published time: 20 Oct, 2015 08:39

A disgraced former US federal agent has been sentenced to 78 months in jail for stealing $50,000 worth of Bitcoins during a government probe into the black market website Silk Road while pretending to give its founder information about the investigation.

Carl Force, 46, who used to work as a US Drug Enforcement Administration (DEA) agent, admitted charges of extortion, money laundering and obstruction of justice. US District Judge Richard Seeborg who oversaw the case at a federal court in San Francisco said the level of his betrayal was “breathtaking.”

The severity of the sentence, which will also see Force have to pay $340,000 in compensation, was handed down as a warning to other potential officials not to engage in corruption.

“The court should send a message that this kind of conduct will be met with a harsh penalty in the form of a high-end prison sentence. A message of leniency communicates to other potentially corrupt government officials that the possibility of prison might be worth the risk in order to profit several hundred thousands or millions of dollars,” the sentence read.

Force’s defense team had been asking for a four-year sentence, citing mental health issues and his battles with alcoholism.

“I’m sorry, I lost it and I don’t understand a lot of it,” Force said.


Posted at 10:50 AM (CST) by & filed under Jim's Mailbox.


The title of the article says it all…

It shouldn’t be about saving the markets, but rather, saving the economy! That state of mind is why EVERYONE should own gold.

CIGA Wolfgang R

What Can the Fed Do to Save the Markets This Time?
Submitted by Phoenix Capital Research on 10/20/2015 16:16 -0400

Throughout the last six years, whenever stocks began to collapse, some Fed official emerged to dangle some new monetary policy (usually more ZIRP or QE) as an incentive to get investors back into the market.

If these verbal interventions didn’t work and the markets cratered, breaking through key support, the Fed implement a new monetary policy.

The most obvious examples of this occurred with QE 2 in 2010 and Operation Twist in 2011: both policies were unveiled when stocks took out the critical 12-month moving average and we at risk of re-entering a bear market.





The best news I’ve heard in years!

It’s when EVERYONE believes it’s real, it becomes the time to start thinking about selling.

CIGA Wolfgang Rech

Gold – A Rally No-One Really Believes In
Submitted by Tyler Durden on 10/20/2015 – 12:46


Anecdotal evidence from press reports, survey data and positioning data all agree on one point: very few people believe that the recent rally could actually be for real.




The significance of this article can’t be overemphasized. Gives new meaning to “Brother, can you spare a dime.”

In declining economies worldwide, and the populace (along with governments) laden with overwhelming debt burdens, there can be only one way out… monetization (printing presses)!

And we all know what that means for gold.

CIGA Wolfgang Rech

With Just $10 “You’re Wealthier Than 25% Of Americans”
Submitted by Tyler Durden on 10/21/2015 09:14 -0400

Submitted by Simon Black via,

Last week Credit Suisse released its annual Global Wealth Report.

The big headline grabber was their analysis showing that the top 1% of people now own 50% of the world’s wealth.

That is true and rather astonishing.

However, the report had another finding that was even more astonishing and largely overlooked.

What they found was that, as a percentage of the world’s population, there are now more poor people in the United States and Europe than there are in China.


Shown here, along the left side of the graph you can see that 10% and 20% of the world’s poorest are in North America and Europe.

Here, they aren’t talking about income. They define poor as lacking ‘wealth’, i.e. taking into account assets and liabilities like cash and debt.

Credit Suisse estimates that half of the world has a net worth less than $3,210. And a large chunk of Americans and Europeans can’t make that cut because their net worth is negative.




An interesting chart on the Dollar, from Citi analyst Tom Fitzpatrick, for those into technical analysis.

Shows 2 double tops, in a declining mode.

CIGA Wolfgang Rech


When the dollar initially breached the neckline in August, we saw a bounce for a 4 day before lower again on August 19.  So far, this time it has been the same – we closed below the neckline (94.06) 4 sessions ago and have since bounced.  A similar follow through would see one more day of US Dollar gains (today) before we head lower…

Click here to read the full article…

Posted at 6:04 PM (CST) by & filed under In The News.



Jim Sinclair’s Commentary

MSM would have you believe this is a one off situation, but the majority of State to a degree is close to this.


Jim Sinclair’s Commentary

If you review what this has meant in the history of Chinese finance you will discover that events like this are gold positive for the average Chinese citizen.

Sinosteel to Default on Bonds After Government Said to Help
October 19, 2015 — 9:35 PM MDT

A Chinese state-owned steel trader is set to default on a bond payment even after the government was said to have stepped in to help, highlighting worsening corporate finances as an economic slowdown deepens.

Sinosteel Co. will delay an interest payment due Tuesday on 2 billion yuan ($315 million) of 5.3 percent notes maturing in 2017, according to a statement on Chinabond’s website Monday. The firm is doing so as it plans to back the bonds with stock of unit Sinosteel Engineering & Technology Co., and that may affect issues related to interest payment, it said without elaborating. The failure to pay interest on time constitutes a default, said Industrial Securities Co., Haitong Securities Co. and China Merchants Securities Co.

More Chinese firms are struggling to repay obligations after the yuan’s fall, a stock rout and speculation that the bond market is overheating. Government-backed companies aren’t immune, and defaults this year had already included two state-owned enterprises, according to China International Capital Corp. The weakest economic growth in a quarter century has also taken a toll on commodities companies, with coking-coal importer Winsway Enterprises Holdings Ltd. defaulting on dollar notes earlier this year.

“Investors should avoid lower-rated steel and coal companies,” analysts at Huachuang Securities Co. led by Tang Yawen said in a report Monday. “With the economy slowing, some companies are likely to run into repayment issues.”

Option Postponed

Two calls Tuesday to Beijing-based Sinosteel went unanswered.

The company said Friday that it had postponed a date at which investors can demand early repayment on its 2017 securities. Investors can’t sell back the debentures until Nov. 20, after an original option date of Oct. 20, it said.



Jim Sinclair’s Commentary

This time the elite just might be screwing around with the wrong people.

Retired truck drivers could see their pension checks cut in half
By Katie Lobosco

Retiree Bill Hendershot stands to lose $2,104 a month if his pension fund gets its way.

The Central States Pension Fund is pursuing a plan that would slash pension checks in half for some former union truck drivers. The fund is on the brink of insolvency and says it needs to cut benefits for 273,000 current and future retirees in order to stay afloat.

Hendershot was told earlier this month that he should brace for a 60% cut as early as July, pending approval from the Treasury Department. If that happens, his remaining check will be $1,396.

“This is going to be rough. It’s quite likely that I’ll have to try to find some work. But who’s going to hire a 74-year-old?” he said.

Hendershot retired after working 35 years as a truck driver. He and his wife live on his pension and their Social Security benefits. The sharp reduction in his payment from the Central States fund would wipe out more than one-third of the total monthly income they have now.

Before last year, current retirees would have been protected from these cuts. But a controversial law passed last December allows multi-employer pension funds to reduce benefits if they are projected to run out of money. A lot of these funds — which cover more than 10 million workers — are in financial trouble.

Related: 273,000 union workers face pension cuts

The Central States Pension Fund covers workers and retirees from more than 1,500 companies across a range of industries including trucking, construction and even Disneyland workers. Truck drivers once made up a majority of participants, and are now a majority of those facing cuts. A lot of their companies went bankrupt after the industry was deregulated in the 1980s, which is a big reason why the fund is in trouble now. It has five retirees for every active worker.