Jim’s Mailbox

Posted at 1:01 PM (CST) by & filed under Jim's Mailbox.

Courtesy of JB.



















Sending chills down my spine.

Be afraid. Very afraid!

2007 Redux?

“If DB goes under with its massive book of derivatives, other banks would be in the same trouble as DB. Nenner says

This is not a hyped prediction considering the IMF called DB the “most systemically dangerous bank” in the world in 2016. If DB does break $6.40, do we get a daisy chain of default around the world? Nenner says”

When fear grips the market, it will game over.

A new epoch of reality will take hold.  It will be called the “Golden Times”.

CIGA Wolfgang Rech

Nenner: If Deutsche Breaks $6.40 “The World Is In Trouble”
May 22, 2019

Via Greg Hunter’s USAWatchdog.com,

Renowned geopolitical and financial cycle expert Charles Nenner says if there was ever a global canary in the coal mine warning for the financial system, it is Germany’s Deutsche Bank (DB). Late last year, Nenner predicted if DB stock went below $8 a share, “You should be worried.” Recently, DB stock hit all-time lows and now sits around the $7.40 per share level.










Nenner warns, “I see it can hold up to late July, and then it can go to $6.50 (per share)…”

“If it breaks below $6.40, it can go out of business. So, it’s a very serious situation… I think all the markets can have a bounce in a couple of days to the end of July. That’s why DB might hold up, but if it gets below $6.40, the world is in trouble.”

This is not a hyped prediction considering the IMF called DB the “most systemically dangerous bank” in the world in 2016. If DB does break $6.40, do we get a daisy chain of default around the world? Nenner says:

“It is a very dangerous situation. I don’t think DB is the only one. They just got caught. I think if you look at the balance sheets very closely of other banks, especially Europe and Italian banks, you will see a lot of troubling signs also. I don’t think it’s only Deutsche Bank. It’s much more…





This is quite an eye opening article.

This is getting very, very dicey!  This is no longer about government vs government, but a nationalistic trend taking everyone down with it.

A full blown consumer war getting underway.

And furthermore, it appears that despite all the “good” reports of our economic activity, coming out from government sources, may just be hogwash.

…and will likely lead to a global trade recession or even a depression, which as we showed last week













…may have already started.

CIGA Wolfgang Rech

The Boycott Begins: Chinese Company Orders Employees To “Stop Using American Products, Eating At KFC”
May 22, 2019

In a harbinger of what’s to come as the US-China trade war gets worse by the day, a Chinese company has told all of its employees to boycott American products and halt international travels to the U.S., reported The Epoch Times.











Jinggang Motor Vehicle Inspection Station notified all employees last Thursday, May 16 that the use of iPhones, driving in American automobiles, eating at American fast food restaurants, using American household products, and even traveling to the U.S. was forbidden by a new company policy; any employee who violated the new rules would be fired. Here are some excerpts from the notice:

“Employees are prohibited from purchasing or using iPhones; instead, they are recommended to use Chinese domestic brands of cell phones, such as Huawei.

“Employees are not allowed to purchase vehicles made by China-U.S. joint venture automakers. They are recommended to purchase 100 percent Chinese-made vehicles.

“Employees are forbidden to eat at McDonald’s or Kentucky Fried Chicken. They are not allowed to purchase P&G [Proctor and Gamble, a U.S. maker of household products], Amway [U.S. maker of health and beauty products], or any other American brands. Employees must not go to the United States as a tourist.”

The company’s memo was emailed to employees several days after state-run newspaper Global Times published an editorial piece that called on the Chinese public to “fight a people’s war” against the U.S.



People won’t realize they missed the boat for all the gold in China.


Why China Is the World’s Largest Gold Consumer
May 19, 2019

Gold has long enjoyed deep cultural significance in China, which holds the title for being both the world’s largest gold consumer and its largest producer. Demand for the yellow metal in China looks like it will continue to rise, driven by a combination of increasing levels of wealth, global economic uncertainty and changing central bank policy.

Momentum Drivers

We typically see four key drivers for gold demand in any market: jewelry purchases, industrial use, central bank purchases and retail investment. China’s market is no exception.

Jewelry Sales: Gold plays a strong role in traditional celebrations in China, and is typically gifted at weddings and births, while ornamental gold sales also spike around the Lunar New Year and during Golden Week in October. At a time when gold jewelry sales are static or falling in many markets, they rose by 3 percent in China in 2018 to reach a three-year high of 23.7 million ounces accounting for 30 percent of the world’s total, according to the World Gold Council (WGC). The rising wealth of China’s growing middle class is expected to continue to support this trend going forward.



The headline here says it all. The underlying question here is the compelling one…If everything in global currencies is as good as we are told, “Why are the Swiss ready to step in?” This is like someone saying “I’m innocent” but saying, “You need to talk to my criminal defense lawyer.” If you are innocent, Why are you represented by a criminal defense lawyer. Are people really this stupid? I guess so.


SNB Is Prepared to Intervene in Currency Markets, Official Says
May 20, 2019

Go inside the global economy with Stephanie Flanders in her new podcast, Stephanomics. Subscribe via Pocket Cast or iTunes.

The Swiss National Bank stands ready to intervene in currency markets if necessary, according to one of its policy makers.

“We’ve always said that we have this approach that we have on the one hand negative interest rates still in place, but we’ve always said that whenever we feel it’s necessary we would be intervening, and that still counts,” Thomas Moser said while attending a conference in Copenhagen on Monday. “So if we feel that there is a need for more interventions we will certainly do it.”

For the past four years, the SNB used a deposit rate of minus 0.75% plus a pledge to use interventions to keep the haven franc in check.