Jim Sinclair’s Commentary
The latest from John Williams’ www.ShadowStats.com.
– Nominal Durable Goods Orders on Track for First-Quarter Contraction, Both Before and After Consideration of Commercial Aircraft Orders
– February Orders Fell versus Downwardly-Revised January Reporting
– On Track for Quarterly and Annual First-Quarter Contractions, Unstable New-Home Sales Held in Smoothed, Low-Level Stagnation
– Existing-Home Sales Tumbled Anew Amidst Unstable Reporting and a Continued Increase in Distressed Sales
“No. 794: New Orders for Durable Good, New- and Existing-Home Sales ”
Bill Holter’s Commentary
But Martin, you called us idiots when we suggest (with all sorts of anecdotal evidence and proof) the gold market is rigged? Are you suggesting the Treasury market is rigged but they would not dare such an act with gold and silver? This one goes under the category of “C’mon Man”!
Is Goldman Sachs Rigging U.S. Treasury Auctions?
Posted Mar 23, 2016 by Martin Armstrong
Goldman Sachs is at the center of a probe into the rigging of U.S. Treasury Auctions, which was the same allegation that resulted in the Treasury shutting down Salomon Brothers in 1991. I wrote about this incident when Salomon was caught. The fact that such rigging in commodities markets was standard for decades was common knowledge. When the commodity industry took over, the practices of such schemes infested Wall Street. Suddenly, what was standard in pork bellies became standard in the U.S. Treasury auctions.
Salomon’s #1 competitor was Goldman Sachs who realized they could be shut down if they were caught doing the same game. It is my belief that this is when a strategy was developed at Goldman Sachs to do a reverse takeover of government. Suddenly, CEOs of the firm infiltrated politics with huge donations and won the prize of U.S. Secretary of the Treasury twice. Draghi is ex-Goldman and now sits at the head of the ECB. He is also a member of the Troika, as is the PM of Australia. I believe they installed people like Larry Summers and bought the Clinton White House to ensure that Glass Steagall was repealed. I believe they own Hillary right down to her pantyhose. They were involved in creating Greek debt as well as their alleged involvement in Malaysia. The German TV ZDF ran a show exposing how Goldman Sachs was ruling the world. It has been removed from the internet.
The curious fact here is that this is starting to leak out to the mainstream press. This is most likely not a coincidence and will have some ramifications, certainly for Hillary as well as Cruz given they both have connections to Goldman Sachs. Hillary has refused to release her transcripts of speeches at Goldman and Cruz “forgot” that they them lent him money. I have written before about my contest with Goldman Sachs. They kept me in prison and demanded the source code to our model. In today’s world of information, ignorance can only be a matter of choice.
Anti-Establishment … Then And Now
Jim Sinclair’s Commentary
Here is the difference between Bill and I and the gold haters.
Helicopter Money Takes Flight as Latest Drastic Monetary Idea
March 22, 2016 — 6:01 PM EDT
Updated on March 23, 2016 — 6:38 AM EDT
After more than 600 interest-rate cuts and $12 trillion of asset purchases failed to move the inflation needle enough, central banks may need to head even deeper into uncharted territory.
The way to get the world out of its disinflationary rut could lie in them directly financing government stimulus — a strategy known as deploying “helicopter money” after a 1969 proposal from Nobel laureate Milton Friedman.
Economists at Citigroup Inc., HSBC Holdings Plc and Commerzbank AG all published reports to investors on the topic in the past two weeks, while hedge fund titan Ray Dalio sees potential in the idea. European Central Bank officials are already squabbling about what President Mario Draghi calls a “very interesting concept.”
“We don’t know for certain that ‘helicopter money’ will be the next attempted silver bullet, however the topic is receiving considerably more attention,” said Gabriel Stein, an economist at Oxford Economics Ltd. in London. “The likelihood is reasonably high of some form being implemented somewhere.”
Bill Holter’s Commentary
A function of the “exit door” shrinking. How do you sell with no one willing to buy?
Liquidity Death Spiral Traps Credit Suisse
By Lisa Abramowicz
Mar 23, 2016 8:46 AM MST
Credit Suisse just got caught up in the same liquidity death spiral that has claimed a growing number of debt funds.
Some of the bank’s traders increased holdings of distressed and other infrequently traded assets in recent months without telling some senior leaders, Credit Suisse CEO Tidjane Thiam said on Wednesday in a Bloomberg Television interview. This is bad on several levels. For one, it highlights some pretty poor risk management on the part of senior officers at the Swiss bank.
But perhaps more important from a market standpoint, it exposes a trap in the current credit market: Traders are getting increasingly punished for trying to sell unpopular debt at the wrong time. The result has been a growing number of hedge-fund failures, increasing risk aversion by Wall Street traders and further cutbacks at big banks.
This all simply reinforces the lack of trading in less-common bonds and loans. At best, this spiral is inconvenient, especially for mutual funds and exchange-traded funds that rely on being able to sell assets to meet daily redemptions. At worst, it could set the stage for another credit seizure given the right catalyst — perhaps a sudden, unexpected corporate default or two, or the implosion of a relatively big mutual fund.
To give a feeling for just how inactive parts of the market have become, consider this: About 40 percent of the bonds in the $1.4 trillion U.S. junk-debt market didn’t trade at all in the first two months of this year, according to data compiled from Finra’s Trace and Bloomberg. While corporate-debt trading has generally increased by volume this year, more of the activity is concentrated in a fewer number of bonds.