Posts Categorized: General Editorial

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We have spoken for the last couple of weeks to subscribers how important it is to not allow your broker to hold your stocks if you wish to prevent them from lending them to short sellers.  I am amazed at how many readers have not done this as Jim has spoken of it since at least 2005.  He has also advised investors either DRS their shares or have physical certificates sent to them…yet here we are in 2019 and I am getting bombarded with questions like “why” and “how”.

How?  Contact your broker and tell them you want your shares sent to the transfer agent and then tell the transfer agent to send the certificate sent to you.  Why?  Because your broker effectively neutralizes your original purchase share for share when they lend them to a short seller who will do what short sellers do…SELL the stock you paid for and were dumb enough to allow your broker to lend them!

With regards to the mining share near and dear to our hearts, I have now seen a letter from a broker to a shareholder with my own eyes.  The broker offered 55%/per annum to their customer if they would lend their shares out.  One should probably ask “why”?  Why would a broker offer 55% to borrow shares of any specific company if the current norm to borrow is something like 5% or 6%?  We have also checked with various brokers to see what the cost to borrow is.  It seems the number is now approaching and even over 100% per annum.  Does this make sense in any fashion?  One could conclude there might be a tad bit of a problem on the short side, specifically finding borrowable shares?

In a world where interest rates hover near all time humankind lows, does your eyebrow raise when you hear a broker offering clients 55% per annum to lend their shares?  Does it not tell you something is very, very wrong in this instance?  Does anyone remember the VW short squeeze?

To quote again, “he who sells what isn’t his’n, buys it back or goes to prison?”

Standing watch,

Bill Holter

Holter-Sinclair collaboration

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Via Michael Oliver’s Momentum Structural Analysis michaeloliver@olivermsa.com

For MSA’s history and an introduction to its methodology visit: www.olivermsa.com

Central Banks, The Stock Market, And Gold
March 10, 2019

When the pillars of the asset category that “must” be defended—the stock market—begin to crumble, the central banks always come in with policy guns a blazin’. And again, continuing with policies never imagined before—QEs, ZIRPS, and NIRPS. Game’s on. If you, as an investor or manager, thought CBs had plateaued in their policies of the recent decade, think again. Despite their academic nose-in-the air press conferences, the reality is that their stock markets must always remain inflated. Although couched in such language as “data sensitive” or Draghi’s “the persistence of uncertainties related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets,” the CBs’ message is clear. Rattle their stock markets and they’ll intervene in asset pricing as best they can. And given the success of that artificial pricing over the past decade, they’re no doubt confident they’ll continue to succeed. And so do many investors.

On the financial channels, investors and talking heads consider a likely renewal of easy central bank policy “good for the stock market.” No doubt President Trump is also pleased by Powell’s sharp reversal.

The CBs know they must push the pedal to the metal again. But the problem is that investors aren’t likely to direct the flow into the inflated bubble that the CBs so desperately want to keep inflated—namely, the developed market stock indices. The Fed, ECB, and BOJ know what will happen if those plaster and plywood skyscrapers crumble and give back their false pricing gains (especially from late 2011 to 2018). Such a downturn in that category will generate on-the-ground desperation and fracturing beyond anything seen in 2008. And they know that, though don’t mention it in their press conferences. That’s why the Fed raised its white flag so rapidly and with such little encouragement in December, thus rejoining the “print into infinity” policy.

Nice. We know where they stand now.

Article PDF

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Think awhile about this great new technology.

Are you hearing those voices again?

What are they saying to you?

Are they telling you how to vote? Are they threatening bodily harm to your loved ones, if you do not perform as instructed?

This is better than Alexa screeching at you at 3 AM.

Just wait until this is weaponized, and then used domestically for purposes of controlling civilian populations.

Next, Nick Tesla’s “Death Ray” will be perfected, if it has not already taken place. Put them together and the voice from nowhere will say “Good bye” to you just before the “Ray” engulfs you.

Maybe I should take the “X Files” off of my Netflix preferred list.

Also, do you think 5G can be weaponized?

The biggest problem with laser weapon technology is that you cannot precisely aim, and a laser weapon firing continues far beyond your ill aimed at target.

They shoot LASER-like beams precisely where they need to go…

These boxes leverage high-gain, adaptive antenna technology and sophisticated best-path-selection algorithms.

They are powered by something called MU-MIMO 802.11ax – which stands for multiple user, multiple input, and multiple output antennas.

If you’re an MIT scientist or Harvard engineer – I’m sure you understand that perfectly.

Jim

New Technology Uses Lasers to Transmit Audible Messages to Specific People
January 23, 2019

WASHINGTON — Researchers have demonstrated that a laser can transmit an audible message to a person without any type of receiver equipment. The ability to send highly targeted audio signals over the air could be used to communicate across noisy rooms or warn individuals of a dangerous situation such as an active shooter.

In The Optical Society (OSA) journal Optics Letters, researchers from the Massachusetts Institute of Technology’s Lincoln Laboratory report using two different laser-based methods to transmit various tones, music and recorded speech at a conversational volume.

“Our system can be used from some distance away to beam information directly to someone’s ear,” said research team leader Charles M. Wynn. “It is the first system that uses lasers that are fully safe for the eyes and skin to localize an audible signal to a particular person in any setting.”

More…

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Dear Readers,

For my interests, this is exactly what I  anticipated gold majors would do as the most predictable result of the shocking depletion of new gold finds of significant magnitude any where in the world.

Majors do not explore. Those majors that do have always done a total lousy job of it. They make up rules of exploration that totally tie the hands of the”Out of the Box” mine finders, from which new supply has ALWAYS come.

See: http://www.cloud-capture.com//gc/Final.mp4

Jim Sinclair

Executive Chairman

j.sinclair@tanzanianroyalty.com

Mining.com

Megamerger Push Has Gold Miners Eyeing New Dance Partners
March 7, 2019

A push by the world’s biggest gold miners to get even bigger will likely have a knock-on effect among their competitors, adding new vigor to an industry that failed to inspire investor support in 2018.

The megamerger mania now under way for Newmont Mining Corp., Barrick Gold Corp. and Goldcorp Inc. is likely to result in some of their assets being sold, helping to diversify portfolios for other miners and boosting the interest of investors. More importantly, it could force mid-tier companies to team up in order to successfully compete.

“This is a competitive marketplace in terms of attracting capital, and you have to make a decision at some point,” Michael Siperco, an analyst at Macquarie Capital Markets, said in a telephone interview. “Yamana, Kinross, Iamgold — what’s the strategy here in terms of not getting absolutely left behind?”

More…

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The following are links to articles on the topics from our Saturday talk. As always, I encourage our listeners to read for themselves.

Dave

It is up to those who know and care to lead. As Thomas Paine said, “These are the times that try men’s souls.” Nothing is guaranteed us.

Paul Craig Roberts

Trump’s surrender to the  neoconservatives makes it impossible for an informed person to support him.  He has signed off on the coup against democracy in Venezuela, and he has placed all life at risk by pulling out of the INF treaty with Russia.

http://www.informationclearinghouse.info/51142.htm

 

The US has repeatedly backed the uprising against the left-wing government, and last November Bolton made a keynote speech calling for the “crumbling” of what he called the “Troika of Tyranny” – Venezuela, Nicaragua, and Cuba – saying the states represented a “a sordid cradle of communism in the Western hemisphere.”

After he returned to prominence under George W. Bush in yet another chapter of an unsinkable career, Bolton failed to dislodge Venezuela’s Hugo Chavez, the Sandinistas, or Cuba’s Fidel Castro (at one point, he accused Havana of developing biological weapons, without solid evidence). But as a man who with permission from Donald Trump now seems to be steering US foreign policy on dozens of key issues, Bolton has more resources than ever before to settle his lifelong ideological grudges.

https://www.rt.com/news/452023-john-bolton-nicaragua-ortega-regime-change/

 

February 20, 2019 “Information Clearing House” –    It may seem oxymoronic, but President Trump is living proof that lunatics can think big. Not content with “only” threatening regime change in Venezuela, the American leader is expanding his mission to rid the Western hemisphere of socialism, with Cuba and Nicaragua next in line for US “salvation”.

 

In a particularly unhinged speech last weekend in Miami, Florida, Trump declared Venezuelan President Nicolas Madura a “Cuban puppet” and “failed dictator”. Trump denounced socialism with a verve that has not been heard from a US president since the depth of the Cold War more than 30 years ago.

http://www.informationclearinghouse.info/51131.htm

Let’s Face It: The U.S. Constitution Has Failed

Elections provide the bread-and-circuses staged drama that is passed off as democracy.

http://charleshughsmith.blogspot.com/2019/02/lets-face-it-us-constitution-has-failed.html

 

A must watch video, or read, if you care about the Constitution.

Nightmare and insanity are akin: mysterious and involuntary states that skew and distort objective reality. One wakens from nightmare; from insanity there is no awakening.

Whether Americans live in the one state or the other is the paramount question of this era.

http://www.informationclearinghouse.info/article30620.htm#idc-cover

 

Currencies

 

Will Nations act in their own best interests?

 

US demands China keep value of Yuan stable halt devaluations. According to sources close to the talks, the two sides are discussing how to codify language prohibiting currency manipulation in a memorandum of understanding that would form the outline of a deal.

https://www.zerohedge.com/news/2019-02-19/aussie-yuan-rise-report-us-pressing-china-stabilize-currency

 

Was the strong dollar policy used to suppress the price of gold?

Treasury Secretary Robert E. Rubin, taking a little air out of the rapidly rising dollar, suggested today that the Administration had ended its two-year-long effort to drive up the dollar against the world’s other major currencies.

https://www.nytimes.com/1997/02/08/business/rubin-hints-at-end-to-long-us-push-of-strong-dollar.html

 

US aid…is this for real? We couldn’t get aid to Puerto Rico, but to Venezuela no problem?

 

Trump plans to address the Venezuelan crisis during a gathering in Miami on Monday.

Read more here: https://www.miamiherald.com/news/nation-world/world/americas/venezuela/article226330885.html#storylink=cpy

https://www.miamiherald.com/news/nation-world/world/americas/venezuela/article226330885.html

 

https://www.usatoday.com/story/news/nation/2018/01/30/fema-ending-water-food-aid-puerto-rico/1079442001/

 

What can/should Americans do to right the wrongs?

 

The International Rogue Nation: America

In 2003, America (and its lap-dog UK) invaded and destroyed Iraq on the basis of lies to the effect that the U.S. (and UK) regime were certain that Saddam Hussein had and was developing weapons of mass destruction. These U.S. allegations were based on provable falsehoods when they were stated and published, but the regime’s ‘news’-media refused to publish and demonstrate (or “expose”) any of these lies. That’s how bad the regime was — it was virtually a total lock-down against truth, and for international conquest (in that case, of Iraq): it was mass-murder and destruction on the basis of sheer lies.

http://www.unz.com/article/the-international-rogue-nation-america/

 

Debt? Who is the poster child for over spending?

 

Russia’s foreign exchange reserves can now cover all of the debt owed by both the government and domestic businesses, Russian President Vladimir Putin has announced.

https://www.rt.com/business/451954-russia-reserves-cover-debt/

 

Washington (AFP) – More massive than the US economy, the national debt hit a new record of $22 trillion under President Donald Trump but Republicans who traditionally rail against debt and deficits have remained mum.

https://news.yahoo.com/us-debt-hits-record-under-trump-republicans-mum-020620122.html

 

GOLD

 

The past five years have been baffling for gold bugs.  In an environment of massive central bank money creation, rising government deficits and a populist takeover of many countries’ political systems – all of which should be great for safe haven assets – gold has spiked to around $1,350 four times, only to be smacked back down each time.  Very demoralizing. And now it’s gearing up for another try.

https://www.dollarcollapse.com/gold-1350-resistance/

 

If you’re looking to understand why Gold continues to rally, you don’t have to look any further than the political arena where more and more politicians are calling for wealth taxes and cash grabs.  Gold ALSO knows that Central Banks are trapped… and will be forced to turn on the money printing presses shortly.

https://www.zerohedge.com/news/2019-02-20/great-global-wealth-grab-back-11-trillion-and-counting

 

The silver market is seeing a turn in fortunes as demand for physical bullion picks up, with the U.S. Mint selling out of 2018 and 2019 American Eagle silver coins.  The mint issued a statement late Thursday saying they had run out of last year’s and this year’s dated one-ounce coins.  “Market fluctuations have resulted in a temporary sellout of 2018 and 2019 silver bullion.  Production at the Mint’s West Point facility continues and when sales resume, silver bullion will be offered under allocation,” the mint said.

https://www.kitco.com/news/2019-02-21/U-S-Mint-Sells-Out-Of-American-Eagle-Coins-6M-Sold-YTD.html

 

– Last week, the United States national debt ticked above US$22 trillion for the first time, an amount equivalent to $67,000 per U.S. citizen

– The U.S. federal government owes more money than any other institution in the history of human civilization and it’s just getting worse

Below, a few factoids about just how eye-wateringly, bone-chillingly large the U.S. debt has become

– The U.S. debt is now higher than the combined market value of the Fortune 500 and just with the money it spends on interest, the U.S. could run Canada or Mexico

– Debt from one Trump term could pay for another WWII and all the gold ever mined would only pay off the debt accumulated under Obama

– All the gold in the world mined since the dawn of time adds to about 190,040 tonnes or 6.7 billion ounces. At the current per-ounce price of about $1,300, the world’s goal hoard worth over $8.5 trillion would be not enough to pay off the U.S. debt accumulated between 2009 and 2016

https://news.goldcore.com/ie/gold-blog/the-utterly-unbelievable-scale-of-u-s-debt-right-now/

 

Newmont Mining Corp. (NEM – Get Report) shares jumped higher Friday amid reports that rival Barrick Gold Corp  (GOLD – Get Report) is prepping a hostile takeover bid that would value the mining group at around $19 billion.

https://www.thestreet.com/investing/earnings/newmont-mining-surges-amid-reports-barrick-gold-considering-19-billion-takeover-14874792?puc=yahoo&cm_ven=YAHOO&yptr=yahoo

 

Cold war 2/0 only this time we may not be the winner

 

In his first major public address since the US formally pulled out of the INF arms-control treaty, Russian President Vladimir Putin warned on Wednesday that Russia would point its new arsenal of hypersonic missiles – which can purportedly bypass NATO’s ABM systems – directly at the US if it dares to reintroduce ground-based intermediate-range missiles to Europe.

https://www.zerohedge.com/news/2019-02-20/russia-will-target-us-new-hypersonic-weapons-if-it-deploys-missiles-europe-putin

 

Though Russia won’t deploy weapons preemptively, Putin said that if the US does place weapons in Europe, Russia will deliver an “asymmetric” response and target not only the host countries of those weapons, but “decision-making center” in the US (presumably Washington).

 

The Russian Defense Ministry has released the first video ever showing an underwater ‘field-test’ of the Poseidon, a huge robotic nuclear-capable mini-submarine with a miniature nuclear reactor.

https://www.rt.com/russia/451986-poseidon-underwater-test-video/

 

Weekly police state up date.  Wake up, everyone is being spied on. And don’t tell me you have nothing to hide!

 

Google could face a backlash over privacy after admitting that Nest users were not told about the existence of a microphone on their devices.

https://www.foxnews.com/tech/google-says-built-in-nest-microphone-it-didnt-tell-users-about-was-never-intended-to-be-a-secret

 

In Arizona this week, a state legislator named David Livingston stirred a controversy about DNA that may be a portent of privacy nightmares to come. A law he proposed would have forced many residents to give samples of their DNA to a state database, to be stored with their name and Social Security number.

https://www.theatlantic.com/ideas/archive/2019/02/dna-arizona/583120/

 

Markets HA HA L.O.L. !

The Fed responds to the market, and the market responds to the Fed, until both are so attuned to each other that neither does anything. Today’s much-anticipated release of minutes from the January Federal Open Market Committee meeting revealed that the Federal Reserve would do… nothing.

https://www.asiatimes.com/2019/02/article/the-feds-positive-feedback-loop/

 

The Economy?

 

Needless to say, it is very troubling that Americans are unable to afford home purchases with the 30% mortgage at just 4.5%, and suggests that even if inflation picks up, the Fed may have no choice but to keep rates flat to avoid a housing market crash.

https://www.zerohedge.com/news/2019-02-21/existing-home-sales-crash-accelerates-buyers-cant-afford-house

 

Make America great again!!! It’s a fairy tail.

 

India is not expected to announce the winning bid until after a national election in May. Lockheed offered to move its F-16 production plant in Fort Worth, Texas, to India, if it wins the contract in a boost to Prime Minister Narendra Modi’s “Made In India” strategy to expand its Air Force and defense sector industry.

https://www.zerohedge.com/news/2019-02-21/lockheed-martin-unveils-made-india-f-21-fighter-jet

 

5 G this week.

 

“Putting in tens of millions of 5G antennae without a single biological test of safety has got to be about the stupidest idea anyone has had in the history of the world.”

https://www.sott.net/article/407657-5G-technology-is-the-stupidest-idea-in-the-history-of-the-world-says-Washington-State-science-prof