Jim’s Mailbox

Posted at 10:41 AM (CST) by & filed under Jim's Mailbox.

Very interesting and insightful connection of dots by CIGA Kevin.  We believed the new SGE contracts were an attempt by China to “wag the dog” (COMEX).  As you will see below, Kevin connects these new “pledged” CME contracts to GLD (HSBC) as a way to possibly weasel the last real physical gold left.  We discussed this on yesterday’s recorded call for subscribers.

Bill

Did The Comex Just Create More ‘Paper Gold’ For Price Suppression?
November 15, 2019

A mysterious “pledged gold” entry has just showed up on the Comex gold warehouse report. The definition of this new warehouse stock classification for gold is provided in Chapter 7 of the New York Mercantile Exchange rulebook.

In brief, “eligible” gold is a gold bar stored in a Comex vault that meets Comex specifications (quality, size, purity, and brand).

A “registered” gold bar is one that has been designated for delivery and for which a warrant has been issued. This warrant is evidence of and specifies ownership title to the bar. Warrants facilitate the transfer of delivery under a Comex contract.

“Pledged gold” is a bar for which a warrant has been issued but for which the warrant has been placed on deposit at the CME Clearing House as part of a required performance bond.

The Chicago Mercantile Exchange (CME) has its own clearing division through which all trades are confirmed, matched (counterparties being verified), and settled (money changes hands). Each contract has a long and short counterparty.

A clearing member of the exchange is typically a bank, hedge fund, or commercial entity that has been admitted as a clearing member. The clearing mechanism is the “lubricant” that enables any securities exchange to function.

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Jim/Bill,

Even if the public is not in the stock market, they will still get screwed.

The Central Banks will use the public’s money to buy stocks should the markets tank.

So, even if you stay away from the toppy stock market, you will still take a loss.  The Central Banks will use your money to bail everyone out.

“the ECB will buy stocks next to somehow stimulate the European economy, when in reality all it will do is stimulate the bank accounts of those Europeans lucky enough to own stocks.”

And when it comes time to bail, wealthy stockholders will be selling their holdings to the Central Banks.  As in any market crash, there will be few bids in an open and free marketplace.  How sweet to have a Central Bank there to unload to.

But never forget, you can’t take risk out of the markets.  You can only transfer it.

And in this case, it will be transferred onto the public’s shoulders.

CIGA Wolfgang Rech

Wolfgang,

What the average person does not understand is this, once central bank balance sheets are filled with equities it will mean that equities back the very same currency used to purchase the equities…turtles all the way down with the bottom turtle standing on thin air!

Best,

Bill

ECB Member Hints Central Bank Will Buy Stocks When Situation Gets “Really Bad”
November 18, 2019

Following last month’s IMF summit where central bankers from around the world conceded the negative rates no longer stimulate the global economy, the ECB’s new head, convicted criminal Christine Lagarde has found herself in a quandary: besides demanding a fiscal stimulus boost from Germany, one which is unlikely to come for at least another 6 months now that Berlin narrowly avoided a technical recession, what else can she demand to stimulate Europe’s moribund growth at a time when Europe’s key offshore growth dynamo, China, is not only set to grow at the slowest pace on record but is furiously exporting deflation?

The answer came on Saturday courtesy of ECB policy maker Madis Muller, the governor of the Bank of Estonia, who essentially hinted that the ECB could very well buy stocks during the next recession, saying that the central bank could broadened its asset-purchase program, if the economic situation in the euro area deteriorates significantly.

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