Posted at 4:36 PM (CST) by & filed under Jim's Mailbox.

CIGA Alex reminds us of sage advice from one of our forefathers!


I find these words particularly appropriate at this time.
‘We must not let our rulers load us with perpetual debt. We must make our selection between economy and liberty, or profusion and servitude. If we run into such debts as that we must be taxed in our meat, in our drink, in our necessities and comforts, in our labors and in our amusements, for our callings and our creed, our people, must come to labor sixteen hours in the twenty-four, give earnings of fifteen of these to the government for their debts and daily expenses; and the sixteenth being insufficient to afford us bread, we must live.
‘We have not time to think, no means of calling the mis-managers to account, but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow suffers. Our landholders, too, retaining indeed the title and stewardship of estates called theirs, but held really in trust for the treasury, contented with penury, obscurity and exile, private fortunes are destroyed by public, as well as by private extravagance.
‘This is the tendency of all human governments. A departure from principle becomes a precedent for a second; that second for a third; and so on, till the bulk of society is reduced to mere automatons of misery, to have no sensibilities left, but for sinning and suffering. And the forehorse of this frightful team is public debt. Taxation follows that, and in its train, wretchedness and oppression.’ Thomas Jefferson. (1743-1826).

Posted at 11:15 AM (CST) by & filed under

Two time, best-selling author Nomi Prins says central bankers have no idea how to stop the easy money policies that they started after the financial meltdown of 2008. Prins explains, “So, when the Fed says they are going to remove assets from their $4.5 trillion book by not reinvesting the interest payment . . . the reality is they haven’t really done that.  They have reduced their book by about $10 billion off of $4.5 trillion since they mentioned they were going to start ‘tapering.”  The media discusses this as a major tightening move.  Somehow all of our economies have finally worked because of central bank activity.  Growth is real.  It’s all positive.  The markets are evidence of that because of the levels they are at; and, therefore, these central banks, starting with the Fed, are going to reverse course of these last 10 years.  The reality is if you look at the actual activity of the central banks, beyond the Fed raising rates by a little bit, there hasn’t been and there isn’t being a reversal of course because they are scared to death that too much of a reversal is going to cause a major crash throughout the financial system. Everything is connected.  All the banks are connected.  Money flows around the world in less than nanoseconds, and all of it has the propensity to collapse if that carpet the central banks have created is dragged from beneath the floor of all this activity.”Prins, who just finished traveling the globe to research her upcoming book, thinks there is one big thing that can take the entire system down. Prins, a former top Wall Street banker, contends, “There hasn’t been any real growth in the real economy.  That is an indication of the misfire of this entire plan.


Posted at 11:13 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

Yes, “very sorry”…In other words, once scores of these jackass Washington professionals start going to jail, Gorgy Porgy figures he gets a free get out of jail card because the Bush era surveillance was “deleted”. I’m sorry, he needs to hang with the rest of the traitors! He essentially dodged the draft, why should it be a surprise he wants to dodge the public hangings? Oh, and are there consequences when something that was ordered…goes ignored? What would happen if it was you or I who “messed up”?

NSA “Sincerely Regrets” Deleting All Bush-Era Surveillance Data It Was Ordered To Preserve
January 20, 2018

There is a growing consensus among many observers in Washington that the national security agencies have become completely politicized over the past seventeen years and are now pursuing selfish agendas that actually endanger what remains of American democracy.

As Philip Giraldi notes, up until recently it has been habitual to refer to such activity as the Deep State, which is perhaps equivalent to the Establishment in that it includes financial services, the media, major foundations and constituencies, as well as lobbying groups, but we are now witnessing an evolutionary process in which the national security regime is exercising power independently.

Nowhere is that “independence” of the ‘state within a state’ more evident than in the blatant and egregious news this week that The National Security Agency destroyed surveillance data it pledged to preserve in connection with pending lawsuits and apparently never took some of the steps it told a federal court it had taken to make sure the information wasn’t destroyed, according to recent court filings.

As Politico reports, the agency tells a federal judge that it is investigating and “sincerely regrets its failure.”


Bill Holter’s Commentary

As we have told you, 2018 will be the year that “truth finally matters”…and lots of it is on track of being exposed!

Weekly Update: New Smoking Gun Clinton Emails!
January 19, 2018

More Smoking Gun Classified Clinton Email

One of the myths perpetrated by Hillary Clinton and her lieutenants is that she was mostly helpless when it came to using email and that she knew nothing about keeping it secure. It has been repeated so often that it has been accepted as true, even though it defies common sense.

Now there is even more evidence to debunk this myth.

This week we released 78 pages of new documents from the State Department containing emails that former Secretary of State Clinton sent and received over her unsecure, non-“” email system. Three of the email exchanges include classified information. The emails also reveal that Clinton had detailed knowledge about the security issues with her non-State Department email system.

On March 8, 2011, Clinton sent classified information regarding Bahrain to Justin Cooper, who reportedly had no security clearance, with instructions to show it to Bill Clinton. Cooper was the Bill Clinton aide who asked State Department IT specialist Bryan Pagliano to build a server for Mrs. Clinton in early 2009, as she started her new job as Secretary of State.

On August 24, 2010, Clinton emailed Cooper additional classified information to print, including the secretary’s call sheet for Indian Finance Minister Pranab Mukherjee.

In a February 13, 2010, email exchange, Clinton passed along classified information to Cooper. It originally was sent to Cheryl Mills (Clinton’s then-chief of staff) by U.S. Ambassador to Mexico Carlos Pascual. The classified information included a note from Mexican Foreign Secretary Patricia Espinosa to Clinton. In the email to Cooper, Clinton asks him to “look for Espinosa’s note and respond.”


Bill Holter’s Commentary

This is a well reasoned editorial and can be summarized under the category “2018 is the year that truth will matter”!

The FISA Memo is All the Ammunition Trump Needs to Take on the CIA
January 19, 2018

FISA is an abomination. Let’s get that out of the way. And since I don’t believe there are any coincidences in U.S. or geo-politics, the releasing of the explosive four-page FISA memo after Congress reauthorized FISA is suspicious.

Former NSA analyst (traitor? hero?) turned security state gadfly Edward Snowden came out in favor of President Trump vetoing the FISA reauthorization now that the full extent of what the statute is used for is known to members of the House Intelligence Committee, who are rightly aghast.

Officials confirm there’s a secret report showing abuses of spy law Congress voted to reauthorize this week. If this memo had been known prior to the vote, FISA reauth would have failed. These abuses must be made public, and @realDonaldTrump should send the bill back with a veto.

— Edward Snowden (@Snowden) January 19, 2018

But, like I said, timing in these things is everything. And the timing on this leak is important.

Someone leaked this memo to the House Intelligence Committee with the sole intention of giving President Trump the opportunity to do exactly what Snowden is arguing for.


Posted at 2:12 PM (CST) by & filed under In The News.

Bill Holter’s Commentary

We have told you of an eventual “cash call” on gold coming from China and Russia.  Asking questions is the way it is and will be done!

US Gold Reserves, Of Immense Interest to Russia and China
January 19, 2018

Recently, Russian television network RT extensively quoted me in a series of articles about the US Government’s gold reserves. The RT articles, published on the website, were based on a series of questions RT put to me about various aspects of the official US gold reserves. These gold reserves are held by the US Treasury, mostly in the custody of the US Mint. The US Mint is a branch of the US Treasury.

The first of these articles, published by RT on 30 December 2017, is titled “US gold of low purity & that’s why audit of reserves will never be allowed – expert tells RT”.

The second article was published by RT on 8 January 2018 and is titled “Russia-China combined gold reserves could shake US dominance in global economy – expert tells RT”

As the subject matter of US gold reserves is broad and wide-ranging, the RT questions and my answers and opinions covered a lot of material and RT therefore decided to divide it’s coverage into 2 articles. The first RT article covered the lack of transparency into the US gold reserves, the fact that has never been any of independent audits of the gold, and the fact that a lot of gold bars that the US claims to hold are actually low purity gold bars which do not conform to international industry standards on tradable wholesale gold bars (i.e. Good Delivery standards).

The first article also touched on the international reaction to and the effects on the US dollar that might unfold if the US gold reserves were found to be less than they are claimed to be.


Posted at 8:31 AM (CST) by & filed under Jim's Mailbox.


Current US Debt:  $20.6 trillion

Current Debt Ceiling:  $20.4 trillion

Of the 3 things that could go awry if the debt ceiling isn’t passed, the 3rd is most crucial!

“Third, owners of U.S. Treasurys would dump their holdings. That would cause the dollar to plummet. The dollar’s drastic decline could eliminate its status as the world’s reserve currency. The standard of living in America would decline. In this situation, the United States would find itself unable to repay its debt.”

Everyone says it would never happen.  Perhaps.

Even the markets are quite glib about it.

But I believe you should never say NEVER.

Giver yourself an education…read the article.

CIGA Wolfgang Rech

U.S. Debt Ceiling: Current Status and Looming Crisis
January 12, 2018

The debt ceiling is a limit that Congress imposes on how much debt the federal government can carry at any given time. When the ceiling is reached, the U.S. Treasury Department cannot issue any more Treasury bills, bonds or notes. It can only pay bills as it receives tax revenues. If the revenue isn’t enough, the Treasury Secretary must choose between paying federal employee salaries, Social Security benefits or the interest on the national debt.

The nation’s debt limit is similar to the limit your credit card company places on your spending. But there’s one significant difference. Congress is in charge of both its spending and the debt limit. It already knows how much it will add to the debt when it approves that year’s budget deficit. When it refuses increase the debt limit, it’s saying it wants to spend but not pay its bills. That’s like your credit card company allowing you to spend above its limit and then refusing to pay the stores for your purchases.

Congress imposes the debt ceiling on the statutory debt limit. That’s the outstanding debt in U.S. Treasury notes after adjustments. The adjustments include unamortized discounts, old debt and guaranteed debt. It also includes debt held by the Federal Financing Bank. The statutory debt limit is just a little less than the total outstanding U.S. debt recorded by the national debt clock.




I would love to be a fly on the wall at the FED.

They are probably discussing this right now.

“Perhaps we should take Amazon Prime out of our stats and substitute Neflix.

After all, people will probably change their habits and make the switch to another carrier.  This way, there is no inflationary impact.”

(Like the old sub chicken for beef shell game).

CIGA Wolfgang Rech

Amazon Boosts Monthly Fee For Prime By $2, Maintains Yearly Rate
January 19, 2018

By Aishwarya Venugopal

(Reuters) – Inc (AMZN.O) raised the monthly fee for the U.S. version of its fast-shipping and video-streaming service Amazon Prime by $2 on Friday, making the case for subscribers to upgrade to an annual plan.

It was the first increase of Prime fees in almost four years and comes at the end of another bullish year and holiday season for Amazon’s dominant online shopping platform.

The move also follows a rise in fees by video streaming rival Netflix Inc (NFLX.O) in October.

Amazon increased the fee for its monthly plan to $12.99 from $10.99, while maintaining the annual fee at $99. It also hiked the monthly subscription fee for college students to $6.49 from $5.49.

“That’s good value, over time they’ve raised the price. I don’t think they will lose many members,” Tigress Financial Partners analyst Ivan Feinseth said.

“Those who use it the most get the most value and won’t mind the higher price and those who don’t use it are not the best customers, so even if they drop off it is not a big loss to Amazon,” he said.



Courtesy of JB


“Explosive”, “Shocking” And “Alarming” FISA Memo Set To Rock DC, “End Mueller Investigation”
January 18, 2018

All hell is breaking loose in Washington D.C. after a four-page memo detailing extensive FISA court abuse was made available to the entire House of Representatives Thursday. The contents of the memo are so explosive, says Journalist Sara Carter, that it could lead to the removal of senior officials in the FBI and the Department of Justice and the end of Robert Mueller’s special counsel investigation.

These sources say the report is “explosive,” stating they would not be surprised if it leads to the end of Robert Mueller’s Special Counsel investigation into President Trump and his associates. -Sara Carter

A source close to the matter tells Fox News that “the memo details the Intelligence Committee’s oversight work for the FBI and Justice, including the controversy over unmasking and FISA surveillance.” An educated guess by anyone who’s been paying attention for the last year leads to the obvious conclusion that the report reveals extensive abuse of power and highly illegal collusion between the Obama administration, the FBI, the DOJ and the Clinton Campaign against Donald Trump and his team during and after the 2016 presidential election.


Posted at 8:27 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

The latest from

– Hurricane Distortions to Economic Reporting Start to Unwind
– Two-Thirds of the 0.9% Monthly Jump in December 2017 Industrial Production Reflected Unseasonably-Bad Weather Boosting Utility Usage
– Full-Year 2017 Production Rose by 1.95%, Following Full-Year Annual Declines of 1.22% (-1.22%) in 2016 and 0.71% (-0.71%) in 2015
– Big Swings in Mining Activity (Oil Production) Drove Those Full-Year Changes, versus Annual Stagnation in Utilities and in the Much-Larger Manufacturing Sector, Despite a Late-2017 Manufacturing Surge for Hurricane-Damaged-Vehicle Replacement
– Fourth Quarter Industrial Production Regained Its Pre-Recession Peak for a Second Time – Dominant Manufacturing Sector Held Shy of Its Pre-Recession Peak by 4.54% (-4.54%), Just Having Passed a Full 10 Years, 120 Months or 40 Quarters of Continuous Non-Expansion; Longest Period of Non-Expansion in the 100-Year History of the Production Series
– In Ongoing Extreme, Monthly Volatility, December Housing Starts Plunged by 8.2% (-8.2%), Reflecting Some Negative Catch Up, as Hurricane-Distorted Boosts Began to Unwind – New Residential Construction Remained in Low-Level, Downtrending Stagnation, with Building Permits Shy by 42.5% (-42.5%), Housing Starts Shy by 47.6% (-47.6%) and Single-Unit Starts Shy by 54.1% (-54.1%) of Recovering Pre-Great Recession Peak Activity
– Multiple-Unit Starts Recovered in 2015, but Have Fallen Back Since by 20.9% (-20.9%) from Their Pre-Recession High

“No. 932: December Industrial Production and Housing Starts”

Weak Dollar Poses a $3.4 Trillion Question for U.S. Credit Markets
January 18, 2018

A key patron of U.S. corporate debt markets — overseas investors — may turn from friend into foe this year.

The weak dollar has whittled down returns for unhedged money managers, raising the prospect of capital flight if the greenback’s losing streak gathers pace, warn Wells Fargo & Co. strategists.

“We see a distinct risk that non-U.S. investors could become net sellers as global economic growth converges and central banks transition from a nearly a decade of easing to more normalized polices, resulting in a lower USD,” strategists led by George Bory wrote in a report distributed to media this week.

The Bloomberg Dollar Spot Index slid to its weakest level in three years Friday, poised for its sixth weekly loss against major peers.


Bill Holter’s Commentary

Normally we don’t post articles like this one but it pissed me off on too many levels to leave alone.  If this is true, what a sad state of mind this woman has.  She talks about “hate and racism” but should look in the mirror.  It amazes me how warped these people have become.  On a side note, had Hillary won, Ms. Squire would probably be on the government payroll already and “outing” the alt-right for all expense paid trips to the nearest FEMA camp!  I cannot imagine paying hard-earned money to send my child to classes taught by someone with no clue as to reason?

  1. Jim read this and commented Ms. Squire would have the job titled in a Hilary administration “Secretary of who to kill”. He also said he hoped and would be proud if we were on the list …but neither of us use Facebook.

SHOCK: An Elon University Professor Is Using Software To Provide Private Details On American Patriots To The Domestic Terror Group Antifa
January 17th, 2018

In an absolutely shocking revelation, a report from Wired Magazine has revealed that a professor at Elon University has devised a so-called “secret weapon”, in support of Antifa, that allows her to keep tabs on at least 400,000 Americans who she believes are members of the alt-right.

The data is then provided to not only the hard-left Southern Poverty Law Center but also directly to radical members of the domestic terror group Antifa who in turn presumably use the doxxed information to target said Americans.

The Wired Magazine report details the work of Megan Squire, a 45-year-old professor  professor of computer science at Elon who have developed the software for the hard-left with the admitted aim at not only getting right-wing patriots fired from their jobs but also possibly killed, as Antifa has been known in the past to violently assault anyone that they believe to be a member of the alt-right.

Amazingly Wired Magazine makes a women literally giving private details on people she just flat out claims are racist to a domestic terrorist group sound like some sort of hero.


Posted at 12:35 PM (CST) by & filed under Jim's Mailbox.

You are correct Wolfgang.




Crisis of Confidence.  Isn’t that the definition of Hyperinflation?

Not inflationary pressures, but confidence?

We’ve been witnessing the Dollar’s castration as the world’s reserve currency used for trade.

China, Saudi, Russia, et al have begun dealing oil for Yuan starting today.

Now note the sentencelow:

“Yet if it’s official purchases of non-dollar currencies contributing to what is going on, their protests will wring a bit hollow.”

Et tu Draghi?

CIGA Wolfgang Rech

Trader Fears Dollar’s Drop “Represents A Crisis Of Confidence About The Country”
January 18, 2018

The dollar index broke down to its weakest level since Dec 2014 yesterday. Despite Fed rate hikes and hawkish forward guidance, every bounce is sold as former fund manager Richard Breslow warns, for get all that, “This looks like the far more worrisome and potentially long-lasting effects of global reserves being consciously built up and allocated in a more widespread fashion.”

Via Bloomberg,

As a gross generalization, I think it’s fair to say that I tend to put a dollar positive spin on things.




What is there to believe anymore?

CIGA Wolfgang Rech

Apple Says It Will Invest $350 Billion In The U.S. Over The Next Five Years
January 17, 2018

Apple (AAPL) is making a major investment in the U.S. economy.

In a release on Wednesday afternoon, the world’s largest publicly-traded company said it would make a “direct contribution” of $350 billion into the U.S. economy over the next five years.

The company said this number does not include ongoing tax payments, or tax revenue generated by wages paid to employees or sales tax on Apple products.

Apple said its capital expenditures, a tax payment due to repatriating overseas profits, and investments in manufacturing in the U.S. will account for $75 billion of its contributions. The company also said it will invest $30 billion to create 20,000 new jobs at existing campuses and will also open a new campus in the U.S.


The Real Story?:

Apple didn’t say it was hiring 20,000 new workers, nor bringing back all of its overseas cash

Many also took Apple’s promise to pay $38 billion in repatriation taxes as a promise that Apple would bring home more than a quarter-trillion dollars it currently has overseas. However, Apple does not have to bring home that money, and much of it is tied up in long-term investments that would make it unlikely.

Apple Didn’t Say It Was Hiring 20,000 New Workers, Nor Bringing Back All Of Its Overseas Cash
January 18, 2018

Apple Inc. announced a series of plans Wednesday that were celebrated as promises to hire thousands of workers and bring home all of its overseas cash.

Well, not necessarily.

Apple AAPL, +0.08%  said in its release that the company planned to “create over 20,000 new jobs through hiring at existing campuses and opening a new one.” The key word there is “create,” which Apple really likes to use when discussing jobs: The company even has a portion of its website dedicated to “job creation” that claims it is “responsible for 2 million jobs” in the United States, most of which are jobs “attributable to the App Store ecosystem.”

Apple currently employs 84,000 people in the U.S., it said Wednesday, while an October filing with the Securities and Exchange Commission said that it has a total of 132,000 full-time employees worldwide, suggesting that about a third of its employees work abroad.


Posted at 10:45 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

Unless these people are camping out for next years season tickets, this is an absolute travesty on all levels. The saddest thing are the arrests being made in California for feeding the homeless…What do you suppose the entire nation will look like once the dollar loses reserve currency status?

Bill Holter’s Commentary

Venezuela is a road map for “the world” at large.

Venezuela’s Cash Crisis: You Can’t Get $1 From A Bank. I Tried.
January 18, 2017

This was a typical day in Caracas, Venezuela, capital of the world’s most miserable economy.

In most of the world, getting a little money out of the bank is an errand, something forgettable. In Venezuela, for millions of people, it is complicated, tedious and surreal, or just impossible.

I moved here a year and a half ago to cover the country’s economic crisis as a freelance journalist. I knew how bad things were, but I never imagined the constant daily struggle to achieve even the simplest of tasks.

As Venezuela has sunk to new depths, prices have skyrocketed, and the currency, the bolivar, has become next to worthless. Supermarkets and banks have become scenes of confusion and chaos: Are they open? Do they have money or food? How much can I get?

Inflation is so rampant — some experts say it ran above 4,000% last year — that it has devoured people’s salaries.

As I write this, one dollar fetches about 191,000 bolivars, according to the black market exchange rate that everyone uses. (Nobody trusts the overvalued official rate because the government has lost credibility among ordinary Venezuelans and in international markets that determine exchange rates.)


Bill Holter’s Commentary

Great article and wish I had written it.  Sometimes the truth hurts …but it is still the truth!

Of Crudeness and Truth
January 12, 2018

Nothing scandalizes a leftist like the truth. Point out that women and men are different, that black Americans commit a disproportionate amount of violent crime, that most terrorist acts are committed by Muslims, and the Left leaps to its collective feet in openmouthed shock, like Margaret Dumont after a Groucho Marx wisecrack. This is racism! This is sexism! This is some sort of phobia! I’m shocked, shocked to find facts being spoken in polite company!

No one is really shocked, of course. This is simply a form of bullying. The Left has co-opted our good manners and our good will in order to silence our opposition to their bad policies. The idea is to make it seem impolite and immoral to mention the obvious.

The bullying is highly effective and very dangerous. In England, in the city of Rotherham, at least 1,400 non-Muslim girls, some as young as 11, were brutally raped by Muslim immigrants over a period of years in the 2000s. Police and other officials worked to keep the facts hidden because, according to multiple reports, they were afraid of being called racist. Think about that: police officers did not want to seem racist, so they stood by and let their city’s children be raped. The same thing goes on in other cities in England and throughout Europe. And in fact, some who have spoken out have had their careers curtailed by manufactured scandal. The message is clear: it’s just not nice to tell the truth. It’s just not done. Don’t do it.


Bill Holter’s Commentary

Add this to the recent ZH article on vintage car prices dropping hard and you can see the barely higher interest rates are already biting hard!

Greenwich Mansions Get Biggest Discounts Since Lehman Fell
January 17, 2018

The fourth quarter was the best time for luxury-home sales in Greenwich last year. It also had the biggest discounts in almost a decade for the tony Connecticut town.

High-end homes that changed hands in the quarter had their prices cut by an average of 13.5 percent, the most since the last three months of 2008, when the housing market all but froze in the months after Lehman Brothers Holdings Inc. filed the largest bankruptcy in U.S. history, according to a report Thursday by Miller Samuel Inc. and brokerage Douglas Elliman Real Estate.

The discounts, in a market that’s still bloated with lavish homes, helped clear some of the backlog. There were three sales for more than $20 million in the fourth quarter. There was only one earlier last year, and none for all of 2016, the firms said.

“Sellers were unrealistic in their pricing and were chasing the market,” Scott Durkin, president of Douglas Elliman, said in an interview. “The real sellers, who wanted to sell, have negotiated down from their asking price.”