Posted at 12:44 PM (CST) by & filed under USAWatchdog.com.

August 20, 2017

Economist John Williams is putting out a rare “Alert” on his popular ShadowStats.com newsletter. What does Williams see that scares him?  Williams explains, “There are several factors.  Number one, I think we are at risk of an extreme market reaction just tied to the economy slowing down unexpectedly against headline expectations.  That is going to mess up the Fed’s planning for raising rates and liquidating their balance sheet.  That is going to force them back to quantitative easing (money printing).  That, in turn, will savage the dollar.   As the dollar plummets, so will U.S. stock prices.  They are heavily supported by the influx of capital from abroad. . . . Given the underlying fundamentals in the markets and in the economy, I think all the components are in place for one of the great financial panics of all time.”

Williams says this is why gold is poised to go up. Williams says, “Gold is the ultimate hedge against all the craziness in the world and very bad financial markets, dangerous currency markets and bad inflation.  Physical gold is the ultimate hedge because it retains its value over time. . . . I have been looking for it to go higher, and it is going to go a lot higher as the circumstances deteriorate.”

At some point, Williams says, “You are going to see a plunge in the dollar. . . . All of a sudden, they are going to stop raising rates . . . and as the economy deteriorates and puts more financial stress on the banking system, they’ve got to go back to quantitative easing. They can’t let the banking system fail.  They have propped up the dollar, but you are going to see a plunge in the dollar.  The fed does not have to actually move to quantitative easing for the dollar to tank, you just have to have the markets shift in sentiment to that effect, and you will see the dollar tank.”

Williams says, “A big factor in the dollar’s value is political stability or the perceived political stability. Right now, you have a circumstance in Washington where there is tremendous political discord.  I can’t remember seeing anything like this in the past.  The President has effectively had his options shut off in terms of moving the economy.  I was looking for him to get elected because of the weakness in the economy. . . . This intensifies the problems for the economy, but I can tell you right up front it’s a big negative for the dollar. . . . If you have a move for impeachment for the President, that will tank the dollar.”

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Posted at 12:40 PM (CST) by & filed under Jim's Mailbox.

Dismal Dave digs up a quote for the ages!

Bill

‘We are in danger of being overwhelmed with irredeemable paper, mere paper representing not gold, not silver, no sir, representing nothing but broken promises, bad faith, bankrupt corporations, cheated creditors and a ruined people.’ Daniel Webster. Speech in the US Senate, 1833. (1782-1852).

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Posted at 4:34 PM (CST) by & filed under In The News.

Bill Holter’s Commentary

Wow! Voter fraud? What a surprise!

U.S. Has 3.5 Million More Registered Voters Than Live Adults – A Red Flag For Electoral Fraud
August 18, 2017

American democracy has a problem – a voting problem.

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As reported by the National Review’s Deroy Murdock, who did some numbers-crunching of his own, “some 3.5 million more people are registered to vote in the U.S. than are alive among America’s adult citizens. Such staggering inaccuracy is an engraved invitation to voter fraud.”

Murdock counted Judicial Watch’s state-by-state tally and found that 462 U.S. counties had a registration rate exceeding 100% of all eligible voters. That’s 3.552 million people, who Murdock calls “ghost voters.” And how many people is that? There are 21 states that don’t have that many people.

Nor are these tiny, rural counties or places that don’t have the wherewithal to police their voter rolls.

California, for instance, has 11 counties with more registered voters than actual voters. Perhaps not surprisingly — it is deep-Blue State California, after all — 10 of those counties voted heavily for Hillary Clinton.

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Posted at 10:48 AM (CST) by & filed under Jim's Mailbox.

CIGA Robin sends us the irony of ironies!

Bill

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Wolfgang, it has been said “hope is the vestige of fools”. I believe this saying is substantially correct. Best,

Bill

Jim/Bill,

This is what are markets have been reduced to…..

“The University of Michigan Sentiment survey beat expectations with its preliminary August print (97.6 vs 94.0 exp) driven by a massive spike in ‘hope’ as currenct conditions slump to their weakest since Nov 2016.”

“Hope” trumps (no pun intended) Stats”.

If you can’t prove, with actual facts, that the economy is roaring ahead, use “Hope” as your primary proof.

What next when you can’t even use “Hope”? “Take our word for it” ?

PT Barnum WAS right…..”There’s a sucker born every minute”.

CIGA Wolfgang Rech

UMich Beats But Warns A Drop Is Imminent
August 18, 2017

The University of Michigan Sentiment survey beat expectations with its preliminary August print (97.6 vs 94.0 exp) driven by a massive spike in ‘hope’ as currenct conditions slump to their weakest since Nov 2016.

How long will that ‘hope’ spike last?

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Posted at 10:47 AM (CST) by & filed under In The News.

Rickards Exposes The Elite’s Plan To Freeze The Financial System
August 17, 2017

Today’s complacent markets are faced with a number of potentially destabilizing shocks.

Any one of them could potentially lead to another financial crisis. And the next crisis could see draconian measures by governments that most people are not prepared for today.

You’ll see what I mean in a moment.

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But first, what are the catalysts that possibly trigger the next financial crisis?

First off, a debt ceiling crisis is just over a month away. If the ceiling isn’t raised by Sept. 29, the federal government is likely to default on at least some of its bills.

If a deal isn’t reached, it could rock markets and possibly trigger a major recession.

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Bill Holter’s Commentary

This falls under the category of “spew whatever comes to mind, throw as much crap as possible up against the wall and hope some of it sticks”?  Whether you know it, understand it, or not … we are part/parcel and witnesses to what will be seen as THE most historical era humanity has ever seen.

CONFUSION: Maxine Waters accuses Ben Carson of being ‘white-wing nationalist’
August 18, 2017

Maxine Waters’s latest rant against Donald Trump and his administration was so unhinged, it amounted to word spittle that could be hear on any street corner in L.A.

Appearing before the Los Angeles Community Review Board, Waters launched into Trump, Treasury Secretary Steve Mnuchin and HUD Secretary Ben Carson.

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Posted at 12:28 PM (CST) by & filed under Bill Holter.

Kathryn and I are returned from our recent trip, my surgery will be Monday at O:dark early. For the first time in years I went several 24 hour periods staying off the internet and two 48 hour stints …without the slightest withdrawal symptoms. Rest assured your e-mails with comments and questions were all read, but few if any were answered as I needed some down time. Many have sent well wishes and prayers, I appreciate the well wishes and welcome ALL prayers!

Our weekly recording for subscribers will be done over the weekend and posted as will one premium article prior to Monday. Next week’s commentary will depend on the speed of recovery and clarity of thought during the recovery.

The most blatant stupidity while we were away has to be the attempt to erase …and rewrite American history. While they are at it, why not “erase” the value of those pieces of paper with the evil slave owning dead presidents on them? This will happen with or without seditious help. If you cannot see this as a coup attempt, please awaken. One topic for this weekend’s work.

Bill

Posted at 12:26 PM (CST) by & filed under In The News.

Bill Holter’s Commentary

No it is not, the deadliest threat is when goat heads with crossed wires and agendas make up fake facts and have a platform (that once upon a time actually reported real facts) to spew bullshit to skew perception. I don’t think these people realize the further from reality they become, the further those with common sense and traditional values will dig in their heals. As a result, Civil War is becoming a very real possibility. I would bet on the side which is armed with rational thought and real bullets…and supports The Constitution!

CNN’s Chris Cuomo: “Extreme Right Is The Number One Domestic Terror Threat In The U.S.”
August 17, 2017

CNN’s Chris Cuomo is a man who likes to make up his own ‘facts’. Remember back in October 2016 when he told his CNN viewers that it was “illegal to possess” documents published by Wikileaks but continued that “it’s different for the media…so everything you learn about this, you’re learning from us.” That’s one way to keep a captive audience and control messaging…just scare them into viewership by telling them it’s illegal to consume information directly from their original sources…

Unfortunately, despite being mercilessly mocked on social media, Cuomo didn’t learn his lessons from his Wikileaks mishap. Just this morning Cuomo decided to drop another creative ‘fact’ on viewers saying “the number one domestic terror threat in the U.S. is the extreme right…just look at the stats.” Courtesy of the Daily Caller:

“If you take anarchists at their worst, do you have malefactor? Do you have criminals in their ranks? Do you have people who do violent things? Yes, yes, yes, yes. That is not a moral equivalency to the KKK,” Cuomo said. “It’s certainly not an equivalent to what we see on the right. Just look at the stats. The number one domestic terror threat in the U.S. is the extreme right. There is not even a close second.”

“That’s all they’re about is hate. Two out of three people on this panel they don’t want to exist!”

Which we guess is a completely accurate statement if you ignore the 2,996 people killed in the 9/11 attacks, 49 people killed in the Orlando night club shooting, 14 people killed in San Bernadino, etc.

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Bill Holter’s Commentary

What could possibly go wrong?

Millennials are financing everything from bed sheets to concert tickets
August 17, 2017

Millennials want luxury sheets, Peloton exercise bikes and music festival tickets, but they don’t always have enough cash or a desire to put them on a credit card. So they are turning to an even more expensive method of payment: financing. In recent years, payment companies including PayPal PYPL, -1.49% Affirm and Bread have created installment plans for retailers that give consumers the option to finance the weirdest purchases over time.

See also: Young Americans want to live like millionaires (on the cheap)

These payment methods have taken hold at a time when millennials have been more reluctant than their parents to use credit cards. Millennials had about two credit cards each on average last year, according to the credit reporting company Experian. That’s compared with about three for boomers and an average of 2.5 for members of Generation X. Now, they don’t have to wait to be able to afford that Vitamix blender.

What could go wrong? Quite a lot, consumer advocates say.

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Bill Holter’s Commentary

Not important enough to even be mentioned in the news cycle? I’m pretty sure I know the moment in time when it will be important enough…

Social Security Requires A Bailout That’s 60x Greater Than The 2008 Emergency Bank Bailout
August 11, 2017

A few weeks ago the Board of Trustees of Social Security sent a formal letter to the United States Senate and House of Representatives to issue a dire warning: Social Security is running out of money.

Given that tens of millions of Americans depend on this public pension program as their sole source of retirement income, you’d think this would have been front page news…

… and that every newspaper in the country would have reprinted this ominous projection out of a basic journalistic duty to keep the public informed about an issue that will affect nearly everyone.

But that didn’t happen.

The story was hardly picked up.

It’s astonishing how little attention this issue receives considering it will end up being one of the biggest financial crises in US history.

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Bill Holter’s Commentary

A funny comment from the article; “While most people in Stamford seemed to like the idea, others asked, do you really need to legislate common sense?”. I would ask, is it possible to legislate common sense? As a side note, my interest in this article arose because I once needed a police escort to exit the Stamford rink as a visiting opponent. They had very passionate fans back in the day!

Stamford Officials Eye Legislation That Would Outlaw ‘Distracted Walking’
August 16, 2017

STAMFORD, Conn. (CBSNewYork) — Drivers aren’t the only ones who could be fined for texting or talking.

Now, there’s a proposal to keep pedestrians safe that could set off a national trend.

Crossing busy Broad Street in downtown Stamford can be a challenge, even if you’re not staring down at text messages on your cell phone.

“I see mothers pushing their babies, they’re texting and I’m like how do y’all do all this at this intersection? That scares me,” Dawn Thompson said.

“There been many times where I looked down on my phone and then notice that there’s a car coming right at me, and I feel like a moron whenever that happens,” Nicole Neurohr said.

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Jim Sinclair’s Commentary

This so important from Zero Hedge, I must be sure all have seen it. This is coup against the office of the President of the United states. This coup is home grown. Face it!

Why Was This ‘Crowd Hire’ Company Recruiting $25 An Hour ‘Political Activists’ In Charlotte Last Week?
August 17, 2017

Trump ignited a political firestorm yesterday during an impromptu press conference in which he said there was “blame on both sides” for the tragic events that occurred in Charlottesville over the weekend.

Now, the discovery of a craigslist ad posted last Monday, almost a full week before the Charlottesville protests, is raising new questions over whether paid protesters were sourced by a Los Angeles based “public relations firm specializing in innovative events” to serve as agitators in counterprotests.

The ad was posted by a company called “Crowds on Demand” and offered $25 per hour to “actors and photographers” to participate in events in the “Charlotte, NC area.” While the ad didn’t explicitly define a role to be filled by its crowd of “actors and photographers” it did ask applicants to comment on whether they were “ok with participating in peaceful protests.” Here is the text from the ad:

Actors and Photographers Wanted in Charlotte

Crowds on Demand, a Los Angeles-based Public Relations firm specializing in innovative events, is looking for enthusiastic actors and photographers in the Charlotte, NC area to participate in our events. Our events include everything from rallies to protests to corporate PR stunts to celebrity scenes. The biggest qualification is enthusiasm, a “can-do” spirit. Pay will vary by event but typically is $25+ per hour plus reimbursements for gas/parking/Uber/public transit.

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Posted at 12:19 PM (CST) by & filed under Jim's Mailbox.

A very astute question Werner!

Bill

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Our friend Robert checks in regarding the debt bubble in China. We must sound like broken clocks but history will look back at this period in time and wonder how the public could not see …it’s all about credit, TOO MUCH OF IT!

Bill

So When Will China’s Debt Bubble Finally Blow Up?
August 17, 2017

Corporate debt in China has soared to $18 trillion, or 169% of GDP, the largest pile of corporate debt in the world, according to the worried Bank for International Settlements. The OECD has warned about it earlier this year. The New York Fed warned about this debt boom in February and that it could lead to a “financial crisis,” but that authorities have many tools to control it.

The IMF regularly warns about China’s corporate debt, broken-record-like, and did so again a few days ago, lambasting the authorities for their reluctance to tamp down on the growth of debt. The “current trajectory,” it said, “could eventually lead to a sharp adjustment.”

The Chinese authorities – the government and the central bank, supported by the state-owned megabanks – have allowed some bonds to default, rather than bail them out, to make some kind of theoretical point, and they have been working furiously on a balancing act, tamping down on the credit growth that fuels the economy and simultaneously stimulating the economy with more credit to keep the debt bubble from imploding. A misstep could create a global mess.

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The real question is not what happens just in China but what is collateral damage outside the country, because they will seek to sell those assets first to protect their internal economy. Otherwise the dragon clans will tear the country apart, just like it has happened before in their history.

Cheers,

Robert

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Jim/Bill,

We increasingly hear about gold’s movement being contrary to what political and economic headlines presuppose.

Gold is telling you something. Listen!

Gold is seeing the “Forest for the Trees”, with the trees being “massaged” economic stats and ancillary markets that supposedly dictate gold’s price.

Stand back and you too will see the light.

CIGA Wolfgang Rech

ECB Minutes Strengthen Dollar and Gold
August 17, 2017

Wednesday was the FOMC and gold rallied, this morning the ECB minutes were released. The euro immediately dropped before cutting some of the losses while gold rallied into a stronger dollar. This just shows how clueless the central bankers around the world are, they have no idea what to do next.

Gold is poised to make the run to 1,300 which it should break through and push higher. Uncertainty and idiocy are everywhere, the FED and the ECB are doing their best to screw up everything, while making policy adjustments that will not work. Kicking the can down the road never works and this time will not be different, BEWARE.

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Gold Shrugs Off 12K Drop In Weekly Jobless Claims
August 17, 2017

(Kitco News) – Gold prices are holding on to overnight gains despite ongoing strength in the labor market.

U.S. initial weekly jobless claims fell by 12,000 to a seasonally adjusted 232,000 in the week to Saturday, the Labor Department said. The total was well below expectations.

Market consensus called for initial claims to be around 240,000. The government left the prior week’s tally unchanged at 244,000 claims.

Gold prices were holding on to solid gains ahead of the report and remain relatively unchanged at $1,290.60 an ounce.

Meanwhile, the four-week moving average for new claims – often viewed as a more reliable measure of the labor market since it smoothens out week-to-week volatility – fell by 500 to 240,500.

Continuing jobless claims, the number of people already receiving benefits and reported with a one-week delay, decreased by 3,000 to a seasonally adjusted 1,953,000 during the week ending Aug. 5, the government said.

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Courtesy of CIGA JB.

Jim

Abraham Lincoln monument torched in Chicago: ‘An absolute disgraceful act’
August 17, 2017

Abraham Lincoln has joined George Washington on the list of those targeted by Chicagoans in a national debate over Civil War-era monuments.

Alderman Raymond Lopez took to Facebook Wednesday night to decry a defaced statue of the nation’s 16th president in the Englewood neighborhood. The giant bust appears to have been damaged after someone in the 15th Ward sprayed and ignited a flammable liquid.

“What an absolute disgraceful act of vandalism. This bust of Abraham Lincoln, erected by Phil Bloomquist on August 31, 1926, was damaged & burned,” Mr. Lopez wrote, a local NBC affiliate reported. “If anyone has any information regarding this act, please contact the police or my office immediately.”

“F- Abe Lincoln,” responded Quintin Mitchell, whose comment was “liked” or deemed “funny” by 160 others.

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Courtesy of CIGA JB

Jim

U.S. pension funds sue Goldman, JPMorgan, others over stock lending market

August 17, 2017

(Reuters) – Three U.S. pension funds sued six of the world’s largest banks on Thursday, including Goldman Sachs Group Inc (GS.N) and JP Morgan Chase & Co (JPM.N), accusing them of conspiring to stifle competition in the more than $1 trillion stock lending market.

In the lawsuit filed in a Manhattan federal court, the funds accused the banks of boycotting start-up lending platforms by threatening and intimidating their potential clients. The defendants include Bank of America Corp (BAC.N), Credit Suisse AG CSAG.UL, Morgan Stanley (MS.N), UBS AG (UBSG.S), Goldman and JP Morgan.

The Iowa Public Employees’ Retirement System, Orange County Employees’ Retirement System and Sonoma County Employees’ Retirement Association said in the lawsuit that the banks have cornered the market on stock lending in violation of federal antitrust law.

“Through various improper means, the likes of Goldman Sachs and Morgan Stanley have for years colluded to maintain their power over this little-known-but-lucrative corner of Wall Street,” said Michael Eisenkraft, a lawyer for the funds and partner with Cohen Milstein.

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