Posted at 12:00 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

He has our prayers even if the timing is whacked.

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Jim Sinclair’s Commentary

The recovery just roars on. Let’s get those interest rates up so we can normalize?

Atlanta Fed Throws In The Towel: Cuts Final Q1 GDP Forecast To Just 0.2%
April 27, 2017

Well that was fast: literally seconds ago we posted JPM’s Q1 GDP forecast revision, saying “while we wait to see if the Atlanta Fed will cut its final Q1 GDP estimate ahead of tomorrow’s official print to 0% or negative.” At precisely the same time as we hit the publish button, the Atlanta Fed came out with its revised forecast and it’s a doozy: after starting its Q1 GDP nowcast at 2.5%, rising as high as 3.4%, and plunging recently as low as 0.5%, the Atlanta Fed has “thrown in the towel” on the quarter in which the Fed hiked rates, and while not negative – or 0.0% – it was about as close as it could go without the Fed losing all credibility for having hiked in a contraction quarter.

From the Atlanta Fed:

Latest forecast: 0.2 percent — April 27, 2017

The final GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2017 is 0.2 percent on April 27, down from 0.5 percent on April 18.

More…

Jim Sinclair’s Commentary

“Get out the laser cannon on a stable platform and deny any North Korean missile into the air.” – JES

North Korean Crisis ‘Worst I’ve Seen,’ Top Navy Officer Warns
April 27, 2017

The senior U.S. Navy officer overseeing military operations in the Pacific region told lawmakers Thursday that the North Korean crisis is the worst he’s seen — testifying that it’s only a matter of time before Kim Jong Un has the capability of launching a nuclear warhead toward the United States.

“The crisis on the Korean peninsula is real—the worst I’ve seen,” said Commander of U.S. Pacific Command Adm. Harry B. Harris Jr. “There is some doubt within the intelligence community whether Kim Jong Un has that capability today or whether he will soon, but I have to assume he has it, the capability is real, and that he’s moving towards it.”

Harris spoke to the Senate Armed Services Committee a day after all 100 U.S. senators were invited to White House grounds for a North Korea briefing.

More…

Posted at 12:11 PM (CST) by & filed under Jim's Mailbox.

Silver short positions at 23 highs! And the dumping of futures by the commercials is losing its luster

On the heels of gold and silver continuing to consolidate gains, the war in the gold and silver markets continues as the commercials (Fed, BIS, bullion banks) shorts in the silver market just hit a new all-time record! As we know the silver futures short positions are at record levels in order to depress the silver price at all costs. The silver market is less deep than the gold market, and therefore easier to manage. This way it is less difficult for the authorities, by suppressing the silver prices, to demotivate investors to invest in the precious metals. The monetary authorities don’t want the silver price to break the $18.50/oz. and $21/oz. resistance levels for fear of much higher silver prices. They don’t want the lit to come off of the pressure cooker.

We can clearly see the tug of war going on in silver on the point and figure chart here below.

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And for gold the authorities don’t want gold break the $1,300 level, which could open the way to the important $1,400 level and subsequently give us $2,000. We can see on the chart here below why the $1,400 level in gold is so important.

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In recent days we have seen the strongest price manipulation going on in gold when the bullion banks dumped 22,000 gold futures contracts on Tuesday April 18 just before the London fix, which resulted in a $8, fall of the gold price in order to rise subsequently $15!!! In my point of view this is a clear sign of the increasing demand for gold from investors wanting to hedge themselves against the geopolitical risks, peak markets and an imminent weakening of the US dollar whilst the Fed and bullion banks seemingly are losing their control in depressing the gold and silver prices. The number of strong hands, investors that believe in the long-term prospects for gold and silver and are holding on to their positions, are clearly increasing and will give the commercials a huge headache. This dumping was respectively repeated on April 19 when an additional 20,000 futures contracts were sold. Both dumps had a notional value of between $2.5-$3bn (20,000 x 100 x 1290= $2.58bn). See below the chart of the net short position of the gold futures held by the commercials (Fed+ BIS + bullion banks)

Commercials have been adding to their gold short positions, but not nearly as aggressively as they have been in the silver market (see chart below).

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Commercial Silver Shorts Hit All-Time Record (10-year chart)

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The net short position of the commercials now almost amounts to 125,000 contracts equal to 125,000 x 5,000 = 625m oz. of silver or 71% of the 2016 annual silver production of 880m oz. Below is a look at a longer-term 23-year chart of commercial shorts in the silver market, which puts even better in perspective how extreme the current short positions are!! We all know what happens when short positions need to be covered!

23-Year Commercial Silver Chart Shows Record Short Positions

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Pushing gold and silver prices to bargain levels is frustrating the suppressing efforts of the commercials and triggering ever so more purchasing

In my point of view at these low and bargain price levels the bullion banks undermine their own goals of depressing the gold and silver prices “in order to make the dollar look better than justified on the basis of its fundamentals”. Remember when the time is up it is up and the fundamentals will rule and no attempted manipulation will succeed because there will be no doubt in anybody’s mind which path to choose. Price will meet time.

Quite similar as with gold despite the increasing short positions the silver price reverses its sell-offs the whole time indicating that people find silver a real bargain hence the funds of money flowing into silver. What the Fed, BIS and bullion banks don’t seem to understand, or do they, is that considering the peak markets and deteriorating fundamentals gold and silver look very attractive, especially at these low levels. And of course the most important inverse correlator for gold and silver the US dollar has run its course. As described in my last article http://www.safehaven.com/article/44222/what-if-the-fed-lowers-instead-of-hiking-interest-rates I think that the real fundamentals of the US economy are as such that there is no room for further hikes if anything the Fed will most likely have to cut interest rates. And thus the reasoning for so many investors to hold long positions in the US dollar will be over hence why gold and silver become more attractive because of their inverse correlation, after all they are expressed in US Dollars.

Anyway these fundamentals put a support under the gold and silver prices and thus the lower the commercials push prices the more purchases they automatically trigger. Why? Because as mentioned gold and silver are the bargain of the century as will be proven by history. Why do you think the Russians and Chinese are accumulating as fast and as much as possible without causing higher prices? Because gold and silver are real money, remember gold and silver nobody’s obligation (nobody’s counter-party obligation). It is like getting a Christmas present from the US. The Russians and Chinese must be laughing all the way to the bank, the best bargain they ever got from the US. They are selling their treasuries because they know that the levels of US debt and US dollar are not sustainable despite all the QEs and thus swap the treasuries for gold. And the Fed, BIS and bullion banks in their almighty wisdom think they can keep the inevitable debasement of the US dollar at bay and gold and silver depressed. Or do they know they don’t they have any choice?

The HFT algos, also used by the Fed, BIS and bullion banks, are not programmed to deal with unexpected high sigma events. It is these events that will ultimately break the manipulation of gold and silver

This is a tug of war that is coming to an end. The monetary authorities have so far been able to control the gold and silver prices using algorithm trading. In a world where HFT represents 80%-90% of daily trading volume the “counter-parties” need to use the same tools to be effective. In fact everything is being driven by these momentum programs and for human intervention is no place anymore. Who needs research if computer determine the decision to buy or sell. Though for the exception that confirms the rule, we know that when we have unexpected events (“emotional” or extraordinary events such as Brexit or Trumps election or other geopolitical events) algorithm trading doesn’t work these algorithms are not programmed to trade unexpected events or high standard deviations. Algos are purely based on mathematical patterns that interpret facts and models and can’t trade on discretionary unexpected events. Extraordinary events are those when the standard deviation, a deviation from a normal range or the mean, would be in excess of 4 to 5. I will explain. If a data distribution is normal then about 68% of the data values are within one standard deviation or divergence from the mean about 95% are within two standard deviations and about 99.7% lie within three standard deviations.

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Statistical theory holds that 68% of all observations in a normal distribution lie within one standard deviation of the average of that sample. Events that lie on the fringes of this distribution are defined by a number of sigmas (standard deviations), which denote the increasing improbability of this outcome being realized. So if something, an event or fact, is statistically within the realm of normal expectations it will be within SD 1 or 2.

A good example out of real life to illustrate the concept of standard deviation is the following. The average height for adult men in the United States is about 70 inches (177.8 cm), with a standard deviation of around 3 inches (7.62 cm). This means that most men (about 68%, assuming a normal distribution) have a height within 3 inches (7.62 cm) of the mean (67–73 inches (170.18–185.42 cm)) – one standard deviation – and almost all men (about 95%) have a height within 6 inches (15.24 cm) of the mean (64–76 inches (162.56–193.04 cm)) – two standard deviations. If the standard deviation were zero, then all men would be exactly 70 inches (177.8 cm) tall. If the standard deviation were 20 inches (50.8 cm), then men would have much more variable heights, with a typical range of about 50–90 inches (127–228.6 cm). Three standard deviations account for 99.7% of the sample population being studied, assuming the distribution is normal (bell-shaped). And one uses the same methodology for determining trading patterns of equities, bonds, interest rates, currency movements etc. etc. Though as mentioned it’s the unpredictable and unexpected events that can hardly be modeled using the fact-based algos, as we have seen with Brexit. Following the Brexit vote the British Pound suffered an 18-standard-deviation devaluation! In other words believed to be impossible to happen within the normal business practices.

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And in my point of view it will be these kind of moments, the unexpected not foreseen events, whereby the HFT algorithms can’t function and will be obsolete (similar to having no market makers in the pit to provide price quotes), that the gold and silver prices will need in order to finally break free from their relentless manipulation.

5 minute suspension rule on the Comex doesn’t apply to the OTC market allowing the bullion banks to re-adjust their positions

And although the commercials will have hedged the short positions they hold on the exchange traded Comex by opposite positions on the non-standardized and opaque OTC market they are most likely to double turn (replace one short position with two long positions) in order not to incur huge losses and in turn make significant profits from going long. Though the question will be who will be so stupid to take the short side when this happens. Another point of interest I should emphasize here is that when the comex suspends trading for 5 minutes the commercials can use that time to also get their positions readjusted in the OTC market. The OTC market doesn’t suspend trading because it is not an exchange traded market but an unregulated bilateral market without any standardized rules. When the prices are too much in flux it is difficult to agree prices on a bilateral trade hence why when the prices on the comex are suspended parties will be granted time to agree their OTC trades. See the 5-minute Comex rule here below.

Nymex/Comex Rule Regarding Special Price Fluctuation Limits for Certain NYMEX and COMEX Metals Futures and Options Contracts

“The Exchanges will monitor the price movements of lead-month primary futures contracts in real-time on a daily basis. Price movements in lead-month primary futures contracts will result in triggering events. Triggering events result in monitoring periods, possible temporary trading halts followed by the re-opening of trading, and price fluctuation limit expansions.

If the lead-month primary futures contract is bid or offered via CME Globex at the upper or lower first special price fluctuation limit, the Exchanges will consider such an occurrence a triggering event that will begin a five-minute monitoring period in the lead-month contract.”

The force majeure will propel gold and silver prices much much higher because of the criminal imbalance between paper contracts and physical backing

In other words the commercials will be able to save their skin despite their sanctioned unlawful behavior though the lit will be off the gold and silver prices. With hundreds of gold and silver contracts “backed” by only one physical ounce of gold and silver the Comex will have to call for a force majeure and settle nominally in US dollars. At this moment the Comex will have failed and the commercials will lose their price setting monopoly. Paper futures without 100% backing of physical gold or silver will be a phenomenon of the past. Gold could straight away go to $2,000/oz. and silver to $125/oz. especially when counterparty risk is showing its ugly head and the dollar is losing its value.

People ask me why I believe that gold and silver could make such leaps higher. Well if you have 200 paper gold futures outstanding for only one physical ounce of silver or gold in registered inventories and suddenly nobody trusts the dollar anymore and wants that one physical ounce the real laws of supply and demand kick in and will leap prices much much higher.

Conclusion: Insure your wealth against the fake valuations!

I think anyway that investors would do well to shift their focus more and more from the flakey intangible assets to the tangible assets such gold and silver, agricultural land and non contaminated fresh water. Next to that investing in the stock and bond markets is already for a long time not based on fundamentals. Everything is fake; the valuations of stocks, bonds and currencies are completely distorted by QEs, ZIRP and NIRP, actions of the Plunge Protection Team and the HFTs with their algos. So explain to me how an investor can invest on the basis of real fundamentals and is not taken for a ride as we are witnessing for example with the GDX and GDXJ. We live in a fake society whereby fake is ruling our reality!

Anyway why buy insurance for your house, your car, and your life but not for your wealth? Why not put 10%-15% of your wealth in physical gold and silver and the gold and silver mining companies if you want to hedge your investments in your house and investments. If everything goes well all your assets will do well whilst if things turn sour gold and silver could give that nice leveraged hedge if you have the physical. When it happens people will wake up and realize that physical gold and silver are money the only real money the only reality and that everything with paper is just paper, worth hardly anything, fake!

© Gijsbert Groenewegen April 26, 2017 g.groenewegen@silverarrowpartners.com

Posted at 8:27 AM (CST) by & filed under Jim's Mailbox.

Wolfgang, interesting mention of the USSR.  I remember telling my wife back in 1991 about six months before their collapse that it was coming.  She asked me how I knew …I told her that gold bars with “the Czar’s stamp” and less than 90% fineness were turning up all over the world which meant they had hit the bottom of the barrel for hard currency and selling the last of their trove.  Too bad they didn’t have their own “COMEX” and printing press to play the game with?

Best, Bill
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Jim/Bill,
 
Simple and to the point.  Even a child can see the reasoning.
 
“The USSR didn’t just fail one day, as does a person who dies of a sudden heart attack or stroke. It was more like a wasting illness brought on by an unhealthy lifestyle. A physician tells a morbidly obese patient: “Your daily consumption of twelve cocktails, three packs of cigarettes, and 4,000 calories, and your refusal to engage in exercise more strenuous than walking to the refrigerator will kill you, but I can’t say when.” For both individuals and governments, certain choices are incompatible with continued existence, and the Soviet government made plenty of those.”
 
CIGA Wolfgang Rech

Next Crisis: Worthless Paper, Angry Citizens, Collapse Risk
April 26, 2017
The USSR didn’t just fail one day, as does a person who dies of a sudden heart attack or stroke. It was more like a wasting illness brought on by an unhealthy lifestyle. A physician tells a morbidly obese patient: “Your daily consumption of twelve cocktails, three packs of cigarettes, and 4,000 calories, and your refusal to engage in exercise more strenuous than walking to the refrigerator will kill you, but I can’t say when.” For both individuals and governments, certain choices are incompatible with continued existence, and the Soviet government made plenty of those.


Very few people foresaw its failure when it was imminent, even purported experts. The small group who said Soviet communism wouldn’t work because it couldn’t work were disparaged right up until it didn’t work. However, the deck is always stacked in favor of those predicting this or that government will fail. Ultimately they all do because they all come to rest on a foundation of coercion and fraud, which doesn’t work because it can’t work.


There is both a quantitative and qualitative calculus for individuals subject to a government: what the government takes versus what individuals get back. Government is a protection racket: turn over your money and it promises physical security from invasion and crime, and adjudication and restitution in the event of civil or criminal wrongs. The quantitative calculus: am I getting more back than I put in? The qualitative calculus: what activities and people does the government help or hinder?
More…

Jim/Bill,

Wait until we start using 10 to the 18th power for Quintillion!

We’ll really lose the populace. They won’t have clue what our deficit is. Perhaps that’s plan!

And how soon before Google takes on a whole new meaning? 10 to the 100th power.

Googol 100 10,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,

000,000,000,000,000,000,000,000,000,000

Name Power Number SI symbol

SI prefix

One

0 1 (none) (none)

Ten

1 10 da(D) deca

Hundred

2 100 h(H) hecto

Thousand

3 1,000 k(K) kilo

Ten Thousand (Myriad)

4 10,000

Hundred Thousand

5 100,000

Million

6 1,000,000 M mega

Billion (Milliard) 9 1,000,000,000 G giga

Trillion (Billion) 12 1,000,000,000,000 T tera

Quadrillion (Billiard) 15 1,000,000,000,000,000 P peta

Quintillion (Trillion) 18 1,000,000,000,000,000,000 E exa

Sextillion (Trilliard) 21 1,000,000,000,000,000,000,000 Z zetta

Septillion (Quadrillion) 24 1,000,000,000,000,000,000,000,000 Y yotta

Octillion (Quadrilliard) 27 1,000,000,000,000,000,000,000,000,000

Nonillion (Quintillion) 30 1,000,000,000,000,000,000,000,000,000,000

Decillion (Quintilliard) 33 1,000,000,000,000,000,000,000,000,000,000,000

Undecillion (Sextillion) 36 1,000,000,000,000,000,000,000,000,000,000,000,000

Duodecillion (Sextilliard) 39 1,000,000,000,000,000,000,000,000,000,000,000,000,000

Tredecillion (Septillion) 42 1,000,000,000,000,000,000,000,000,000,000,000,000,000,000

Quattuordecillion (Septilliard) 45 1,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000

Quindecillion (Octillion) 48 1,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000

Sexdecillion (Octilliard) 51 1,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000

Septendecillion (Nonillion) 54 1,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000

Octodecillion (Nonilliard) 57 1,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000

Novemdecillion (Decillion) 60 1,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000

Vigintillion (Decilliard) 63 1,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000

… … … … …

Googol 100 10,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,

000,000,000,000,000,000,000,000,000,000

CIGA Wolfgang Rech

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QUINTILLION…

Bill

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Jim/Bill,

A trillion here, a trillion there….and soon we’ll be talking quadrillions!

What number comes next?

Furthermore I don’t see anything about a personal tax cut. Only business.

Nor is there mention of the debt we will be incurring with his massive infrastructure spending program!

Am I the only idiot that sees “Weimar Germany” written all over it?

CIGA Wolfgang Rech

Trump To Order Corporate Tax Rate Cut To 15%, Loading Up To $2 Trillion In Extra Debt
April 24, 2017

Ahead of Trump’s much anticipated tax announcement on Wednesday, the WSJ reports that the president has ordered his (mostly ex-Goldman) White House aides to accelerate efforts to create a tax plan “slashing the corporate rate to 15% and prioritizing cuts in tax rates over an attempt to not increase the deficit” which means that without an offsetting source of revenue, Trump is about to unleash the debt spigots, a proposal which will face fierce pushback from conservatives as it is nothing more than a continuation of the status quo under the Obama administration, and may well be DOA.

The WSJ adds that during an Oval Office meeting last week, “Trump told staff he wants a massive tax cut to sell to the American people” and that it was “less important to him if the plan loses revenue.”

Hoping to add a sense of dramatic urgency – after all his 100 day deadline hits on Saturday – Trump told his team to “get it done,” in time to release a plan by Wednesday.

More…

Posted at 8:22 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

Maybe it should be equipped with a laser cannon to take down any missed launched. They exist and they work too well?

Trump sends Cruise missile-carrying nuclear submarine to South Korean port as he warns Kim Jong Un ‘is a problem that needs to be finally solved’
April 25, 2017

A nuclear-powered US submarine arrived in a South Korean port on Tuesday in a show of force amid concerns that North Korea may attempt another missile launch or nuclear test on Tuesday.

The port call in Busan by the USS Michigan came as an American aircraft carrier strike group continued steaming towards Korean waters.

And as tensions in the area continued to rise, the top nuclear envoys from South Korea, Japan, and the US met in Tokyo to discuss North Korea’s refusal to give up its nuclear program.

More…

Jim Sinclair’s Commentary

Does this sound familiar?

Next Crisis: Worthless Paper, Angry Citizens, Collapse Risk
April 26, 2017

The USSR didn’t just fail one day, as does a person who dies of a sudden heart attack or stroke. It was more like a wasting illness brought on by an unhealthy lifestyle. A physician tells a morbidly obese patient: “Your daily consumption of twelve cocktails, three packs of cigarettes, and 4,000 calories, and your refusal to engage in exercise more strenuous than walking to the refrigerator will kill you, but I can’t say when.” For both individuals and governments, certain choices are incompatible with continued existence, and the Soviet government made plenty of those.

Very few people foresaw its failure when it was imminent, even purported experts. The small group who said Soviet communism wouldn’t work because it couldn’t work were disparaged right up until it didn’t work. However, the deck is always stacked in favor of those predicting this or that government will fail. Ultimately they all do because they all come to rest on a foundation of coercion and fraud, which doesn’t work because it can’t work.

There is both a quantitative and qualitative calculus for individuals subject to a government: what the government takes versus what individuals get back. Government is a protection racket: turn over your money and it promises physical security from invasion and crime, and adjudication and restitution in the event of civil or criminal wrongs. The quantitative calculus: am I getting more back than I put in? The qualitative calculus: what activities and people does the government help or hinder?

More…

Posted at 12:38 PM (CST) by & filed under In The News.

Bill Holter’s Commentary

If this is not fake news and in fact true, I do not know what to say.

US Preparing To ‘EVACUATE 230,000 Americans From South Korea’
April 24, 2017

DONALD Trump has demanded the evacuation of US citizens from South Korea as part of a drill named Courageous Channel, military sources have revealed.

The operation, set to take place in June, will prepare for the safe exit of around 230,000 Americans in the case of conflict.

If the Pyongyang was to attack, tens of thousands of American civilians, including military dependents residing in and around the capital city of Seoul, could very well be caught in the crossfire.

More…

 Revealed: 300 BILLION Pieces Of Plastic Are Found Floating In The Once Pristine Arctic Ocean
19 April 2017

Hundreds of tonnes of plastic are cluttering the once pristine Arctic Ocean and doing great damage to the planet, a new report has found.

On top of the danger of fish and other wildlife swallowing the plastic, the material contains toxic chemicals that leak into the ocean.

These toxins can attract other chemicals in the water to create concentrated hot spots of deadly waste.

More…

Posted at 12:37 PM (CST) by & filed under Bill Holter.

Please watch, forward or post my latest interview with Greg Hunter http://usawatchdog.com/captains-of-dollar-are-panicked-bill-holter/    

Also, below is our latest public article:

Zerohedge put out an interesting article yesterday: Why “Nothing Matters”: Central Banks Have Bought A Record $1 Trillion In Assets In 2017. Please note this is $3.6 trillion annualized rate so far this year.

Of particular note is this chart:

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What jumps out at you should be the quadrupling of the their balance sheets since 2007 from $3.5 trillion to over $14 trillion.

So what exactly does this mean? Basically, to keep the system from imploding upon itself the world’s central banks had to “create” over $10 trillion of liquidity by purchasing assets onto their balance sheets. This is puts forth a “chicken or the egg” question, or actually two as you will soon see.

First, central banks have been buying everything …including stocks, to prevent the markets from turning down. It is safe to say they understand that with the leverage and derivatives outstanding they cannot allow markets to correct (or God forbid actually enter bear markets). They understand the “size” of the derivatives markets is so large, NO ONE can withstand a downturn and actually be called upon to perform their “insurance payments”.

So the central banks have a problem here, they are now “forced” to purchase assets to prevent market downturns but one should ask the question “who will they eventually sell to”? The answer of course is “no one” because there is no one large enough to take these assets off their books. Chicken or the egg question number one; did the central banks create the bubble going in to 2008 or did the bubble of 2008 create the current central bank balance sheet bubble?

While you are pondering that question, let’s look at another, much more important chicken or the egg question. Central banks “create money” via credit. They are now buying all sorts of assets from “pristine” (sovereign debt) to “ugly” (junk debt to get it off of bank balance sheets) to truly “stupid” (stocks). Also, please keep in mind central banks for the most part are the issuers of currencies, their balance sheets and what they are comprised of “backs” the currency. They have put themselves in the position of buying assets they know they can never sell. They can never sell because there are no buyers large enough to buy, AND, they would then be creating the downturn in markets they originally denied if they ever stopped buying let alone selling assets.

With the above in mind, what does this mean for the currencies they issue? Won’t they be forced to continually purchase ever more assets to prevent markets from collapsing? And doesn’t an ever larger balance sheet mean money supplies expanding and thus more currency units outstanding versus basically static amounts of real goods available? Do you see where this is going?

OK, chicken or the egg question number two; the central banks by definition create inflation (via currency and credit), does the continual creation of their “product” (fiat) in order to prevent the destruction (deflation) of their product …actually destroy their product? Simplified, because “money” MUST be created at ever greater amounts to avoid deflation, are the central banks forced to ultimately destroy their currency? The answer of course is YES. Central banks are forced in the exact same mathematical manner as any Ponzi scheme …to issue currency in an exponential manner.

What has actually happened was entirely predicable since 1913. At some point the U.S. (and thus the entire world as the dollar is the reserve currency) would reach debt saturation by definition. We did so in the 2006-2007 era. The only balance sheets left to “reflate” at that point were the sovereign treasuries/central banks themselves. They by result have destroyed their own balance sheets over the last 10 years. It is only a matter of time until this is fully recognized by the investing/consuming public and thus lose confidence in the central banks themselves. At this point, central banks will destroy their own currency by doing what they do …creating currency and credit. From here, the faster they run, the faster the boogeyman catches them!

Standing watch,

Bill Holter

Holter-Sinclair collaboration

Comments welcome bholter@hotmail.com

Posted at 2:40 PM (CST) by & filed under Jim's Mailbox.

Jim,

You know the man who stands on the corner with the sign. The end is near, forget him. The end has already taken place. you just do not know it yet.

CIGA GG

Global Debt Explodes At ‘Eye-Watering’ Pace To Hit £170 Trillion
April 4, 2017

Global debt has climbed at an “eye-watering” pace over the past decade, soaring to a fresh high of £170 trillion last year, according to the Institute of International Finance (IIF).

The IIF said total debt levels, including household, government and corporate debt, climbed by more than $70 trillion over the last 10 years to a record high of $215 trillion (£173 trillion) in 2016 – or the equivalent of 325pc of global gross domestic product (GDP).

It said emerging markets posed “a growing source of concern” to financial stability and the global economy as debt burdens in these countries climb at a rapid pace.

More…

Jim,

An outside shock that can’t be controlled by the Fed and BIS will break the camel’s back and suddenly people’s eye pads will come off and they will become aware of the real situation.

It is about the awareness! This is what is lacking hence why people need to be shocked into reality!

By the way Macron is like a little boy, I wouldn’t be surprised if Le Pen wins!

The end is near. No, the end has come!

CIGA GG

More Retail Stores Are Closing Than at the Height of the Great Recession: Report

April 22, 2017

This week it was Bebe. Last month it was Staples. In February it was JCPenney.

Stores are closing at an epic pace. In fact, the retail industry could suffer far more store closures this year than ever.

Brokerage firm Credit Suisse said in a research report released earlier this month that it’s possible more than 8,600 brick-and-mortar stores will close their doors in 2017.

More…

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Courtesy of CIGA GG

Jim

The Banking Industry Abuses Its Customers Worse Than United Airlines

April 17, 2017

Last week the Internet was ablaze with disgust after a man was physically dragged off a United Airlines flight.

What’s amazing, though, is that there are countless cases of another industry abusing its customers in far, far worse ways than the airlines.

I’m talking, of course, about the banking industry.

1. Banks treat you like criminal suspects too.

Sure, United had a man dragged away like he was a rape suspect being hauled off to jail.

More…