Jim’s Mailbox

Posted at 4:19 AM (CST) by & filed under Jim's Mailbox.

Bill/Jim,

A supposed party with possible knowledge inside IRGC says that since yesterday evening, 56 IRGC commanders have been arrested by the IRGC’s intelligence organization. I have not confirmed this as I have no reason to do so, so take this as plausible rumor.

This would presume IRGC being cleared of spies at the moment so no Iranian response until spy/spies found. This is believable as they did this about a year ago. One imagines they have much dissent within the ranks.

So if missiles have hit Iraq as you said, then they must feel confident in their cleansing.

By way, Putin was in Syria today.

Early today several” B2 Stealth Bombers departed their facilities at Whiteman Air Force Base. Cannot mention the specific takeoff time. The Callsigns for these aircraft were “Death-(#)”

Also earlier today, a “herd” of C-130 Hercules transport aircraft took off together from the US East Coast.

You no doubt saw that the coalition have started to move to Kuwait. I can only imagine that a departure from Iraq will be a reality, regardless of what is being said. And I still think there are chess pieces in play not visible.

I am more concerned about the impact potential hostilities will have on the markets with bank fallout as the liquidity is not there. On the Monday the 6th the Fed offered offered $76.9 billion in the overnight Repo facilities, while their exposure for the 1st of January was $255billion. This is not going away anytime soon.

As I have told you this is a international crisis of liquidity that has been brewing for a long time overseas and clearly has grown to domestic issues where markets tie together. There is simply not enough liquidity in the system at this time to alter the mess to come as the Fed is trying to fix a domestic problem while it is being played internationally, while the Primary Dealers in the US are more than happy to profit from the cheaper rates the Fed is trying to maintain. Meanwhile Main Street is being clobbered and many jobs are risk as liquidity woes tank companies.

Cheers, Robert