Posts Categorized: Bill Holter
Part 2, Politics and the Rule of Law
December 28, 2017
In this section we will look at “politics and the rule of law” (or the lack of). If you remember, WikiLeaks dumped all sorts of information from the second half of 2016 on. Much of the information was gleaned from John Podesta’s personal e-mail account …and none of it has ever been claimed to be fake e-mails so we can assume they are true. In fact, the reaction to the information (e-mail) dump was to point fingers at “who stole” them and the “illegality” of obtaining them. Never mind “what” the e-mails exposed!
2017 turned out to be the “aftermath” of the many initial shocks from 2016. We have been revealed in 2017 many instances where what first appeared in 2016, was far more severe, rampant, and went way further down the rabbit hole (and up the chain of command) than we could have ever imagined. 2017 served us platter after platter of dirt, each one piled higher and the stench worsened markedly as the year progressed. For instance;
This one has to sting any supporter of Bernie Sanders. Come to think of it, it has to really sting ANY “American”!
Donna Brazile: I found ‘proof’ the DNC rigged the …
She must know of others because “one” does not create a pattern …what would make her so fearful?
Part 3 Sleaze, Various Other Truth Bombs
December 29, 2017
We scratched the surface on Government, finance, politics and the rule of law so far. Today, let’s take a look at sleaze and fraud. The sleaze part is not just “sensational”. It is important because in many cases it crosses any decent person’s red line and should piss anyone off who reads it or discovers it.
The first part is certainly not all inclusive but is wide ranging. That said, 2018 looks to be shaping up as barn burner for the arrests of child molesters and human traffickers. Not only are there over 10,000 sealed indictments, President Trump shocked the world by signing this executive order. https://www.whitehouse.gov/presidential-actions/executive-order-blocking-property-persons-involved-serious-human-rights-abuse-corruption/ I do have concern over this as I believe it steps over the line of considering someone guilty before being proven innocent. Seizing assets prevents one from defending themselves, but if this is necessary to stop what is going on in the world of pedophilia, so be it.
December 26, 2017
Here we are at the end of 2017 with more “truth bombs” released than I could have imagined! In fact, I believe we probably received more “truth” in just one year than collectively in all of human history. This is a sad statement because it also means we have lived behind more lies than at any time prior. Also surprising is none individually have cracked the dam called “confidence”. But do not be fooled as it looks as if the entire dam is moving, particularly in the last few weeks!
As we have stressed all year long and prior, our entire lifestyle relies on credit …and credit relies on confidence. The “truth bomb” thesis from the very beginning came from our belief that confidence will break once enough lies are fully and obviously exposed showing our entire lives (standard of living) as a fallacy. The global standard of living has evolved hand in hand with the credit bubble, it will also deflate hand in hand as the bubble pops. “Truth” will be the catalyst!
The topic is so broad it had to be broken down into 3 (possibly 4?)parts. Our goal is to build categories from individual stories shedding light for you the reader to connect dots. During the year, we heard from readers asking “why” we discuss, politics, the rule of law, geopolitics/international tensions rather than sticking to economics, finance, and ultimately silver/gold? The answer is simple, as the various lies are exposed and the dominoes begin to fall, each truth will create a drop in confidence and push more and more capital out of the rigged casinos toward “safety”. It is human nature to pull in your horns and go back to basics when trust becomes and issue. Another way to say this is for “scared” money, all roads will lead toward gold and silver because they ARE “trust” on their own. The road to silver and gold are paved with many broken promises …which truth bombs are in the process of fully exposing!
Since the outsized dumps of paper gold and silver dating all the way back to 2013, we goldbugs have claimed COMEX was ripe for a delivery default. We were of course viciously trolled and called crazies in comment sections after going through the logic of how much was being sold and how much open interest there was going into “first notice” days versus inventory.
We were called chicken littles because each delivery month would see open interest collapse going into and during the delivery process and default from excess demand always evaporated at the last moments. I wrote several times and questioned the logic of accounts that were fully funded to take delivery…they just “went away”. It defied logic to say the least. We also speculated but could never prove these fully funded longs were “bribed” to not take delivery. It turns out we were correct and wrong at the same time. As it turns out, it looks like some fiat did change hands AND deliveries were made after all but it turns out they have been hidden and did not come from COMEX per se!
Koos Jansen originally found that “EFP’s” (exchange for physical)were being used to divert long’s being delivered to, away from the COMEX and toward London. James Turk then took the baton and actually found the reporting of EFP deliveries on the CME website! As a background, EFP’s have actually been around since 1974 but rarely if ever used. They were originally created as a stop gap measure for a way a short could deliver in an emergency situation. Now, we have discovered this “emergency measure” is being used on a daily basis and in HUGE amounts! For years, Harvey Organ followed all movements in COMEX gold and silver but the final analysis never equated with logic because we did not have this missing “EFP” piece.
To explain as an example, this past Friday saw a decrease of roughly 10,000 Dec. gold contracts. In the past we would wonder why 1,000,000 ounces of gold did not stand for delivery since the accounts were fully funded and ready to take delivery? We also see that 15,000 EFP contracts were written…which means rather than losing 1,000,000 ounces standing, there were actually 500,000 more totaling 1.5 million ounces in the delivery process for just the one day. To put this in perspective for you, Friday’s 1.5 million ounces works out to about 47 tons…in just one day. COMEX claims to have a whopping 28 tons of deliverable gold currently…(less than 900,000 ounces)! Is this “legal”? Yes, I guess you could say it is. Is it “transparent” and has COMEX, CME or even the CFTC alerted the public that this is how deliveries are being made? If nothing else, settling the majority of demand in this fashion is “sneaky”, certainly not transparent.
These EFP transactions have now become “normal” business practice. By looking back to October, roughly 8,500 contracts each and every day were being EFP’d…call this a pace of about 17 million ounces of gold for the month! This equates to eating up total global annual gold production in less than five months assuming no other demand at all. Obviously this cannot continue as London, nor anywhere else has an infinite horde to divest. (As a complete side note but parallel in my opinion, do you remember when QE was used originally for “emergency” purposes and is now considered “normal business practice”)?
The question now becomes “how long can they continue to deliver” at this pace before supply is exhausted? As London’s books are closed and secret, we cannot do the math but we do know they face an impossible task.
Remembering a little history, during the 1800’s, Britain absolutely beat up on China financially, diplomatically and even in war. China was forced to turn ports over to Britain, enter into unfair trade deals and even divest Hong Kong. China was humiliated, lost much of their gold and saw their silver devalued by the West.
We know massive amounts of gold have been going East from the West, this is fact. We also have speculated for years that Western central banks have been supplying gold in order to support currencies and credit markets. Has the clandestine movement of “public” gold away from Western vaults occurred? In my opinion yes, and I do believe this will become a very hot topic and be considered a truth bomb by the public…they will see it as the Treasury being pilfered.
How long and how much gold has been bought by and delivered to China? I believe 20,000 tons at least, which means some of it was “official” Western gold. The Chinese by the way have VERY long memories. They have not forgotten their past treatment. Are they gutting “Britain and the West” by purchasing much of our gold? Are they now returning the favor 150 years later? I have to say, they certainly have good reason to if this is the case.
So there you have it folks, is this COMEX living up to their nickname as they are now caught red handed? The longs have not been abandoning their requests for delivery as we were led to believe. Instead, the deliveries are being diverted to London and not reported by COMEX in their open interest nor delivery figures.
At this point, nearly any short sale to “open” based on COMEX inventories are virtually naked…not to mention each time several million paper ounces are dumped in minutes to crush price. Does this mean COMEX blows up tomorrow? No, but it does mean we now understand “how” the paltry inventories have been protected and how real delivery has been diverted away from annihilating the COMEX inventories. “Fair and transparent price discovery”? I don’t think so but I do believe the Russians and Chinese have seen this day coming. Why else have they have set up markets and clearing facilities of their own? I believe the obvious answer is in the question above…”fair and transparent price discovery”!
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Many have asked how I am doing after my recent hip replacement. Thank you all for your concern and especially prayers! I promised my doctor, Dr. Grayson Moore, I would have a video for him within three months from surgery so here it is. From a martial artist’s standpoint this is a little rough as I have not trained seriously in 9 years and am running pretty hard at 60 years old but am pleased the motion is still there. I knew 9 years ago I did something very bad to my hip but had no idea it was broken. Just as my Dad taught me so many years ago “I got up, dusted myself off and went on down the road”. I hope you enjoy this video as much as I enjoyed making it and now walking around without pain. The operation was a life changing event!
A special thanks to Dr. Grayson Moore for fixing me up and Craig C. for holding the wood and his “drone/editing” skills!
There are many topics to write about today but I just had to shake my head this morning after listening to CNBC for less than 10 minutes. They had a guest on who said “as long as the central banks keep printing, a ‘finite’ amount of stocks and bonds will keep going up”. In essence he is saying that central banks have finally discovered the “holy grail” and can print our way to economic and financial nirvana!
Sorry but this has been tried many times before with the same results beginning with China’s “invention” of paper currency 100’s of years ago representing real monies gold and silver. Yes, to this point, printing has covered over all the pimples and moles but in the process we now have an EVERYTHING bubble…EXCEPT for gold and silver. The funny thing (not so much) is gold and silver are THE ONLY assets throughout all of history to “benefit” during each and every episode of man’s largesse…but this time it is different?
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So many have contacted me recently regarding Andy Hoffman’s sudden flip flop on silver that I feel it necessary to comment publicly. To be clear, this is not a “hit piece” on Andy, rather using logic and common sense I hope it is some comfort for those worried. I believe what and “how” Andy has acted can be classified as irresponsible for several reasons.
First, as many of you know, I was a branch manager for AG Edwards, my last 12 years as a branch manger. I took fairness, honesty and “the law” very seriously. I was a broker for 23 years and never had any type of legal proceeding or settlement ever brought against me or any of my brokers. As a branch manager I was ultimately responsible for everything. If anything goes wrong in a brokerage office, the manager will end up being charged with failure to supervise. One area of great importance is “correspondence”. The BM must initial (yes by hand back then as it is now all electronic) all incoming and outgoing correspondence.
I tell you the above because for the first year or so with Miles Franklin, Andy would send his work to everyone (me included) before it was posted. As is my nature, I read it with an eye toward truth and also “liability”. There were quite a few instances where Andy wrote some things I believed were either wrong, not appropriate or even libelous. At first I wrote to Andy pointing out my concerns but was met with anger. Then I decided to give David and Andy Schectman a heads up with things I believed would pose a problem. There were two article in entirety that fortunately (in my opinion) were not published. My “suggestions” became a problem to the point we were both told not to interact with each other. Andy was then assigned his own editor.
The above is for reference because I still think like a branch manager. In the securities business there is law prohibiting “front running” (though major house and HFT’s do it all the time). Basically what the law says is this; if you are going to act on something, you must advise your clients before doing so. This makes sense and would seem like the right thing to do even (especially!) in the world of “handshakes”. The “way” and timing of the how Andy informed the public is very disappointing to me and does not pass muster in my book.
As far as the “what” he informed us of, everyone is entitled to their opinions even if it defies logic. I won’t go into the Bitcoin argument here but you can listen as JSMinest host’s Bix Weir and Clif High to discuss this weekend. Selling ANY precious metals to purchase Bitcoin in my opinion is foolishness defined. As for moving from silver to gold, because “gold is the metal of Kings and not believing storing hundreds of pounds of silver is anything the public should do waiting for the gold silver ratio to tighten” …this is ridiculous!
Andy has for years written and spoken of the wisdom of holding precious metals …and in particular silver. He used sound logic and hammered away at the “ratio” as being a core reason to favor silver, and for good reason. I cannot explain his reasoning other than reading into his statement regarding “weight”. Storing silver is more difficult than gold but can be easily done using one or more private vaults. Telling us that “gold is the metal of Kings” does not mean anything to me nor does it relate to “value”? The fact is, silver is THE cheapest or most undervalued asset on the planet. You can google that statement and find many articles explaining this. Moving from silver and into gold with ratio of 75-1 defies any and all logic I am aware of!
Though I no longer work directly for Miles Franklin, I have retained my business relationship with them and clear all of my metals business through them. It is because of my friendship and trust for both David and Andy, I decided on my own to write this piece. Andy Hoffman is his own person and responsible for his own actions. I do not know how Miles Franklin will handle this but I feel the need to apologize to readers because you did not deserve the irresponsible nature of “what and how” Andy decided to change his mind and inform us after the fact.