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 10:34 AM (CST) by & filed under In The News.

Good News For Gold Mining Investors – Merger Mania Is Gripping The Sector
January 15, 2019

News broke yesterday of the biggest merger in gold mining history. Newmont Mining (NYSE:NEM) announced that it was combining with Goldcorp (TSX:G/NYSE:GG) to become the world’s largest gold producer.

This follows on the heels of the Barrick-Randgold merger, which was announced last September, and completed a fortnight ago.

It’s merger-mania in gold mining. What are the implications?

The top dog merges with a total dog

Until recently, Newmont Mining had enjoyed top dog status as the world’s largest gold miner. It has three producing mines in the US, three in Australia, two in Ghana and two in South America (comparatively stable jurisdictions for a miner). Last year it produced some 5.3 million ounces of gold, and it has further reserves of just under 70 million ounces. Its market capitalisation, before yesterday’s announcement, was close to $17bn.

Over the last ten years, it has been creditable, if unspectacular performer, at least by gold mining standards, and, since 2016, has comfortably outperformed the sector’s benchmark exchange-traded fund (ETF) – GDX (NYSE:GDX).

More…

Keep in mind this sets up a continuous metal currency metal arbitrage the would be demanded for paper at a key technical point for paper gold in dollars.  JES

Gold Hits An All Time High In 72 Currencies
January 15, 2018

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.

Faulty yardsticks also takes us onto wealth management. Measuring our net worth in local currencies, we might be rather pleased with ourselves – smug even. However we chose to ignore the fact that the yardstick is not a constant … it is shrinking and sometimes really quite fast. It’s the natural corrosive effect of inflation. Knowing this, governments give us a gauge for yardstick shrinkage to use such as RPI or CPI, to reassure you that the shrinkage is minimal… and then lie about it. 

There are alternatives.

More…

Bill Holter’s Commentary

Nothing to see here…unless you are a traitor to the nation, have committed gross financial fraud or traffic in humans!

2019 Brings Changes To Military Justice System
January 1, 2019

FORT MEADE, Md. — A host of changes to the Uniform Code of Military Justice became effective Jan. 1, modernizing definitions for many offenses, adjusting maximum penalties, standardizing court-martial panels, creating new computer-crime laws, and much more.

The changes strike a balance between protecting the rights of the accused and empowering commanders to effect good order and discipline, said Col. Sara Root, chief of the Army’s Military Justice Legislation Training Team.

“We’re pretty excited,” Root said. “It’s a healthy growth of our military justice system.”

Root and three members of her team spent the last year traveling to 48 installations to train 6,000 legal personnel and law-enforcement agents about the changes. Her two-day classes included everyone from judges to law clerks, and privates to generals, she said, and even 600 from other military services.

More…

Posted at 10:18 AM (CST) by & filed under Jim's Mailbox.

The “wrap up smear”.  These people are lying pigs sucking off of the taxpayer teet in an effort to destroy the country …and almost half of the population has no clue and falls for it every time!  All I can say is one half of the population is armed and just so happens to be the half who believe in The Constitution, the other half believes in anything including skittles, rainbows and elusive unicorns!

Bill

 

And the hits keep coming!

JB

Congress Wants Info: Former Top FBI Lawyer Being Investigated For Leaks
January 15, 2019

James Baker, the former top lawyer for the FBI, has been under a Department of Justice investigation since 2017, for allegedly leaking sensitive national security information to the media. The information regarding the leak investigation was confirmed in a letter from top House Republicans on Tuesday who are seeking more information on Baker from the Department of Justice.

Rep. Jim Jordan, R-Ohio, and Freedom Caucus Chairman Rep. Mark Meadows, R-NC, included a transcript of the congressional hearing with Baker in their five page letter to DOJ United States Attorney John Durham. Jordan and Meadows said the investigation into Baker was confirmed during the October, 2018 hearing when Baker’s attorney, Daniel Levin, told the lawmakers his client was under investigation.

In the transcripts, Levin says, “you may or may not know, [Baker has] been the subject of a leak investigation…a criminal leak investigation that’s still active at the Justice Department. So I’m cutting off —”

More…

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