Posted at 6:25 PM (CST) by & filed under General Editorial.

If one offered investors a fat tail put option that never decays or expires, costs about -1% pa to carry, has no counter party risk & no chance of ever becoming worthless, there would be a line out the door. But when one explains that this option is physical gold… no interest.

          S. Mikhailovich

Posted at 10:56 AM (CST) by & filed under Jim's Mailbox.

You gotta love Grannies with guns!

Bill

What’s not to love? Grannies with guns.

JB

 

JB,

It’s about to get really good!

Bill

Federal Court Orders Discovery on Clinton Email, Benghazi Scandal: Top Obama-Clinton Officials, Susan Rice and Ben Rhodes to Respond to Judicial Watch Questions Under Oath
January 15, 2019

Seven Other Top State Department/Clinton Aides Must also Respond to Judicial Watch Queries

(Washington, DC) — Judicial Watch announced today that United States District Judge Royce C. Lamberth ruled that discovery can begin in Hillary Clinton’s email scandal. Obama administration senior State Department officials, lawyers, and Clinton aides will now be deposed under oath. Senior officials — including Susan Rice, Ben Rhodes, Jacob Sullivan, and FBI official E.W. Priestap — will now have to answer Judicial Watch’s written questions under oath. The court rejected the DOJ and State Department’s objections to Judicial Watch’s court-ordered discovery plan. (The court, in ordering a discovery plan last month, ruled that the Clinton email system was “one of the gravest modern offenses to government transparency.”)

Judicial Watch’s discovery will seek answers to:

Whether Clinton intentionally attempted to evade the Freedom of Information Act (FOIA) by using a non-government email system;

whether the State Department’s efforts to settle this case beginning in late 2014 amounted to bad faith; and

whether the State Department adequately searched for records responsive to Judicial Watch’s FOIA request.

Discovery is scheduled to be completed within 120 days. The court will hold a post-discovery hearing to determine if Judicial Watch may also depose additional witnesses, including Clinton and her former Chief of Staff Cheryl Mills.

More…

 

Jim,

We have talked, on Saturdays, about new highs in gold in many countries.

Bill

Gold Hits An All Time High In 72 Currencies
January 15, 2019

It is natural that we measure things by a familiar yardstick – the problem is that being so-biased or lazy, we can be deceived.

Take gold. Popular belief has it that gold prices have not performed especially well despite some egregious geopolitical and economic factors. Well measured in 72 currencies, gold is at … or within a few percentage points … of being at an all time high for people in those countries. Not on the list are the British Pound, the Swiss Franc, the Euro and Chinese Yuan – but we are not far off in all of those currencies too. Only in USD does gold lag – and not all of us live in the US.

Using the dollar gold price, as most of us do, has disguised what is actually quite a powerful bull market. If my memory serves me right, we saw the same phenomenon – a stealth rally in minor currencies – ahead of the last major gold bull run (in dollars) in the late 1990’s. Arguably this may be a very good leading indicator.

More…

Posted at 9:45 AM (CST) by & filed under Jim's Mailbox.

Jim,

This is why Junior miners sitting on known deposits are so important.

Dave

Yet Another MAJOR Reason To Buy Gold
January 14, 2019

For almost a year now, I’ve been advising you that gold production is plunging…

By itself, declining gold production isn’t a huge deal.

It takes hundreds of millions of years for minerals to form deep in the earth’s crust… but humans only need a few decades to extract it.

That’s why mining companies need to constantly explore for new deposits.

And that’s where the problem comes in… mining companies haven’t been exploring.

Large mining companies have been cutting their exploration budgets for years. By the end of 2016, exploration budgets hit an 11-year low.

More…

Posted at 9:36 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

…because rates are so exorbitantly high!

Bill Holter’s Commentary

Global recession has arrived, any questions?

Collapse In Global M1 Signals A Worldwide Recession Has Arrived
January 14, 2019

By now everyone has seen some iteration of this chart showing that the annual change in central bank liquidity is now negative.

 

 

 

 

 

 

Another way to visualize just the Fed’s balance sheet contraction is courtesy of this chart from Morgan Stanley which shows specifically which assets – Treasurys and MBS – are declining on a monthly basis.

More…

Bill Holter’s Commentary

Does anyone see a problem with this?

Posted at 11:37 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

More evidence of the credit markets not working correctly.

U.S. Federal Reserve may need to backstop repo market: BAML
January 11, 2019

NEW YORK (Reuters) – Extreme volatility in a key funding market for banks as 2018 came to a close should serve as evidence that the U.S. Federal Reserve ought to be prepared to serve as a backstop to prevent the market from seizing up, Bank of America Merrill Lynch analysts said on Friday.

The $2.2 trillion repurchase agreement (repo) market enables banks and Wall Street to raise short-term cash to finance their trades and loans by using Treasuries and other securities as collateral.

On Dec. 31, the Secured Overnight Financing Rate (SOFR), a gauge on overnight repo rates, jumped to 3.15 percent, which was 75 basis points above the interest on excess reserves (IOER), or what the Fed pays banks on the excess reserves they leave at the central bank. Prior to the year-end spike, SOFR was running one basis point to six basis points above IOER.

More…

Posted at 9:51 AM (CST) by & filed under General Editorial.

The following are links to articles on the topics from our Saturday talk, The End Of Empire And Reset, available for subscribers. I encourage our listeners to read for themselves.

Dave

https://www.nytimes.com/2019/01/06/world/middleeast/bolton-syria-pullout.html

 

https://www.apnews.com/89288a2b8f274eb7897733078960df56

 

https://www.zerohedge.com/news/2019-01-11/pompeo-announces-international-summit-iran-address-destabilizing-influence

 

https://www.zerohedge.com/news/2019-01-09/bank-england-boss-chinas-renminbi-will-rival-dollar-global-reserve-currency

 

https://www.rt.com/business/448441-russia-reserves-dollar-dump/

 

https://www.bloomberg.com/news/articles/2019-01-09/russia-boosted-yuan-euro-holdings-as-it-dumped-dollars-in-2018

 

https://www.rt.com/news/448426-yellow-vests-financial-bank-protest/

 

https://www.rt.com/op-ed/448381-fall-empires-washington-london-paris/

 

https://www.zerohedge.com/news/2019-01-09/swiss-national-bank-suffers-15-billion-loss-2018-market-rout

 

https://www.bloomberg.com/news/articles/2019-01-07/blackrock-backs-gold-as-growth-cools-while-volatility-stays-high

 

https://mises.org/wire/money-how-its-past-predicts-its-future-0

Posted at 9:47 AM (CST) by & filed under Jim's Mailbox.

Jim,

This is the world’s worst nightmare.

Dave

White House Sought Options to Strike Iran
January 13, 2019

President Trump’s National Security Council asked the Pentagon to provide the White House with military options to strike Iran last year, generating concern at the Pentagon and State Department, current and former U.S. officials said.

The request, which hasn’t been previously reported, came after militants fired three mortars into Baghdad’s sprawling diplomatic quarter, home to the U.S. Embassy, on a warm night in early September. The shells—launched by a group aligned with Iran—landed in an open lot and harmed no one.

More…

 

Jim,

I am sure the protester’s will soon go home and eat cake.

Dave

Watch Absolute Mayhem As Yellow Vests Battle French Riot Police In 9th Week Of Protests
January 12, 2019

The Yellow Vest movement has taken to the streets across France for a 9th week of anti-government protests, as the Gilets Jaunes movement appeared to surge in both number and intensity. While the demonstrations were largely peaceful for most involved, there were several violent skirmishes with police.

More…

Posted at 9:36 AM (CST) by & filed under USAWatchdog.com.

By Greg Hunter’s USAWatchdog.com (Early Sunday Release)

Investment advisor and former Assistant Secretary of Housing Catherine Austin Fitts says it looks like a “global recession is coming.” Is that going to cause the debt reset we’ve been hearing about for years? Fitts says, “Make no mistake about it, there is no reason for the federal government to default or monkey with any debt because they can literally print the currency. The question is how do they make sure whatever they are printing really holds any kind of store of value. I think the reason you are seeing them reengineer the federal bureaucracy and financial transactions infrastructure is because they want much greater and tighter control to do whatever they do, and that includes to continue to debase the currency. They could do this (reset) entirely by debasing the currency. . . . What we are watching . . . is essentially a coup. We had a financial coup, and now we are watching a legal coup to consolidate that financial coup. I would keep my eye on the fundamental governance structure of the U.S. The important thing is not what they do. The important thing is who controls no matter what they do. Now, we have created a mechanism for them to control entirely in secret and create policies entirely in secret, including around the back of a U.S. President. . . . It’s pirating by the ‘just do it’ method. I said to someone the other day, what is it about secret money for secret private armies that you don ‘t understand?”

$21 trillion in “missing money” at the DOD and HUD that was discovered by Dr. Mark Skidmore and Catherine Austin Fitts in 2017 has now become a national security issue. The federal government is not talking or answering questions, even though the DOD recently failed its first ever audit. Fitts says, “This is basically an open running bailout. Under this structure, you can transfer assets out of the federal government into private ownership, and nobody will know and nobody can stop it. There is no oversight whatsoever. You can’t even know who is doing it. I’m telling you they just took the United States government, they just changed the governance model by accounting policy to a fascist government. If you are an investor, you don’t know who owns those assets, and there is no evidence that you do. . . . If the law says you have to produce audited financial statements and you refuse to do so for 20 years, and then when somebody calls you on it, you proceed to change the accounting laws that say you can now run secret books for all the agencies and over 100 related entities.”

More…