Posts Categorized: In The News

Posted by & filed under In The News.

Bill Holter’s Commentary

Really?

Forbes Slammed For Encouraging Women to Vacation Alone in Pakistan
October 14, 2019

Forbes faced ridicule and condemnation after the media outlet encouraged women to travel alone to Pakistan, including to areas where the Taliban is active.

“Pakistan. It’s not exactly on every solo female traveler’s bucket list. But that doesn’t mean that it shouldn’t be,” states the article, which serves as promotional material for Vlogger Eva zu Beck, who made a video asserting that Pakistan “could be the world’s #1 tourism destination.”

The article even notes how Beck headed straight into “Taliban Territory” during the trip, which is obviously a fantastic idea for any female traveling alone.


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J. Johnson’s Latest – Silver The Signal!
October 15, 2019

Great and Wonderful Tuesday Morning Folks,   

      Gold is still trading higher but that Silver Signal, the one that everyone is supposed to ignore yet has proven to be factual, is still signaling, with Gold at $1,497.80, up 20 cents after being pushed down from the high at $1,503 to the low at $1,492.70, which happened only a few minutes ago. Silver the signal, is down 5.5 cents with its price at $17.655, up from the low (minutes ago) during London’s churn at $17.590 with the high to beat at $17.765. The US Dollars basket of currencies, is still being supported by those that print with the trade at 98.25 up 8 points and close to the high at 98.28 with the low at 98.005. All this was done before 5am pst, the Comex open, and the London close.   

      Venezuela’s Bolivar now has Gold valued at 14,959.28 showing a loss of 24.97 Bolivar from yesterday’s early morning quote with Silver at 176.329 virtually unchanged from yesterday. In Argentina, the Peso has Gold valued at 86,918.94, losing 163.96 Pesos in the overnight with Silver at 1,024.34 showing a loss of 0.460 in A-Peso value. In Turkey, Gold is now down 98.86 in T-Lira value, after all, a nation warring with its neighbor’s is nothing these days with Golds value now at 8,803.65 T-Lira. Silver under the same craziness is now trading at 103.756 Lira’s, losing 1.005 Lira’s.      

      October Silver Deliveries gained again during yesterday’s semi-holiday with the total demand count now at 339 fully paid for contracts waiting for receipts and with a Volume of 6 up on the board so far today but with zero trading range. We have to assume so much here; is this an entry into, or an exit out of, a spread trade? If these answers are yes, what is the damn price? Silver’s Overall Open Interest gained since yesterday’s early morning count with this morning’s total at 209,719 showing the shorts added 764 more contracts to stay the price or maybe even to push Silver into “the signal”.   

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Posted by & filed under In The News.

Bill Holter’s Commentary

Just a thought, they tell us they can create “wealth” from nothing…can they also create clean energy from nothing and leave no trace of a footprint?

Electric Cars Could Be Just Another Ecological Disaster
October 9, 2019

As sea levels rise and climate-change protests grow ever louder around the world, the owners of electric cars may feel they are doing their bit to avert a global-warming crisis. If so, they may be deluding themselves. Electric vehicles currently account for less than 0.5% of the world’s cars. That will change soon. Many countries, including France, Canada, the UK and Norway, have set target dates for ending the sale of gasoline or diesel vehicles between 2025 and 2040, and major car manufacturers are racing to dominate this new and lucrative market.

Around the world, consumers have so far been reluctant to embrace electric cars, but a tipping point will come when there are sufficient charging points and drivers realize that a car that runs on fossil fuel has no resale value. And when that happens, whether the electric car is going to save us or destroy us will depend on what type of power we use to charge its batteries.

When the UK announced in 2017 that the sale of new gasoline and diesel vehicles would be banned from 2040, there was a sharp intake of breath from the national grid. With 9 million vehicles being charged daily, the current maximum peak-time demand for electricity could increase by as much as 50%, which is beyond current capacity. As this scenario will be replayed wherever millions of electric cars are plugged in, the most pressing question will be: Where will we get the electricity to charge them?

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Bill Holter’s Commentary

No kidding? But this is a central bank saying it…

Central Bank Issues Stunning Warning: “If The Entire System Collapses, Gold Will Be Needed To Start Over”
October 14, 2019

It’s not just “tinfoil blogs” who (for the past 11 years) have been warning that a monetary reset is inevitable and the only viable fallback option once trust and faith in fiat is lost, is a gold standard (something which even Mark Carney hinted at recently): central banks are joining the doom parade now too.

An article published by the De Nederlandsche Bank (DNB), or Dutch Central Bank, has shocked many with its claim that “if the system collapses, the gold stock can serve as a basis to build it up again. Gold bolsters confidence in the stability of the central bank’s balance sheet and creates a sense of security.”

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J. Johnson’s Latest – Ag – The Stress Is Still Here!
October 14, 2019

Great and Wonderful Monday Morning Folks,    

      Gold got some strength over the weekend with the trade at $1,500.30, up $11.60, just above the Algo made Maginot line, with the high close by at $1,501.50 and the low at $1,481.30. Silver is the Tag A Long Kid again with its trade up 11.1 cents at $17.655 with its “close by high” at $17.670 with the low at $17.455. The US Dollar is being supported as well, keeping up with that “Dollar supports Gold therefore Gold supports the Dollar” idea with its trade at 98.195, up 19 points with the close by high at 98.25 and the low to beat at 98.040. All this was done while everyone else but us traded, before 5 am pst, the Comex open, and the London close.   

      Over in the lands of heavily printed currencies we have the Venezuelan Bolivar, proving what will happen in the primaries once the algos break with Gold trading at 14,984.25 Bolivar, showing us a slight increase of 142.82 in Bolivar value with Silver at 176.329 Bolivar, gaining 2.147. In Argentina, the Peso now has Gold valued at 87,082.90 showing us a gain of 1,022.01 in A-Peso profit with Silver now at 1,024.80 Pesos showing a 14.90 Peso gain. Over in Turkey, Gold is now priced at 8,902.51 proving a gain of 201.12 in T-Lira value with Silver now at 104.761 gaining back 2.655 T-Lira, recovering almost all of Friday’s beatings. Not even a war can get the algos to break the controls set in precious metals, one day this too will matter.     

      The October Silver Delivery Count shows a 1 order gain during Friday’s trades giving us a total of 338 fully paid for contracts waiting for receipts and with a trading Volume of 2 up on the board so far this morning with a trading range between $17.54 and $17.525 with the high the last price traded. Silver’s Overall Open Interest continues to contract with the trade’s count losing 1,254 Overnighters since Friday mornings tally with the total now at 208,955 Obligations. All that’s needed now, is a continual drop in Ag’s overall Open Interest, as the Options play remains, then things could get really interesting.     

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Bill Holter’s Commentary

Journalism is dead…They have called us conspiracy theorists even though much of what we have spoken of has in fact been proven correct and factual.  I think the term used to describe journalists should be “conspiracists” because they create news to support their handlers agendas.  What kind of world do they think they are leaving their children?

Ummm…IS THIS REAL?! ABC News Appears To Have Used Gun Range Footage From 2017 Claiming It’s Current Combat In Syria
October 14, 2019

OK, so we’re not 100% sure this is actually real but wow…it certainly looks like the same footage. But as with all things Twitter, we are sharing with a grain of salt.

Maybe two grains of salt.

Watch.


It certainly looks like the same footage…and then there’s the alleged source of the alleged video.

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Bill Holter’s Commentary

Yes…and if pigs had wings they could fly?

Awkward! Chelsea Clinton Emphatically States A Person With A Beard And A Penis Can ‘Absolutely’ Identify As A Woman, While Mom Hillary Shuffles And Looks Conflicted As She Blames ‘Generational’ Differences For Not Being As Open To Trans Rights
October 13, 2019

It may appear Hillary and Chelsea Clinton always see eye-to-eye, but in a recent interview one topic cracked the facade of the like-minded mother-daughter power duo. 

The one issue Hillary and Chelsea don’t appear to agree on entirely is transgender self-identification.

In an interview with The Sunday Times, journalist Decca Aitkenhead asked the Clintons if someone with a beard and a penis can ever be a woman, to which Chelsea replied emphatically, ‘Yes.’

However, as Aitkenhead describes it, Hillary looked ‘uneasy’, and blamed generational gaps for being less accepting.

‘Errr. I’m just learning about this,’ Hillary responded. ‘It’s a very big generational discussion, because this is not something I grew up with or ever saw. It’s going to take a lot more time and effort to understand what it means to be defining yourself differently.’

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Posted by & filed under In The News.

Bill Holter’s Commentary

But whatever you do, don’t call it “QE”…because that denotes monetization?

Fed Looked to Advance Discussion of Reserves Amid Repo Turmoil
October 9, 2019

Federal Reserve policy makers, jolted by last month’s disturbances in short-term funding markets, talked at their most recent meeting about the appropriate level of bank reserves the system needs, paving the way for the likely balance-sheet expansion that Chairman Jerome Powell flagged on Tuesday.

The minutes from the Federal Open Market Committee’s Sept. 17-18 gathering showed that participants noted the possibility of resuming trend growth of the balance sheet to help stabilize reserves. Policy makers also suggested that the committee should consider the merits of introducing a standing repurchase agreement facility — a new tool to control short-term rates.

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Bill Holter’s Commentary

So what do you believe? Market based numbers or the BLS propaganda?

Global Air Freight Decline Now Worst Since 2008 Financial Crisis
October 12, 2019

The escalating trade war between the US and China has accelerated the synchronized global downturn. Global exports continue to collapse, and the global Purchasing Managers Index (PMI) remains under 50, stuck in contraction territory. All of these ominous signals indicate a global trade recession could be imminent in 2020.

New data from the International Air Transport Association (IATA) shows global air freight volumes, measured in freight tonne kilometers (FTKs), plunged 3.9% in August YoY, and this was the tenth consecutive month of contraction and the most extended decline since the 2008 financial crisis.

Global trade volumes are quickly slowing, down over 1% from a year ago.

Trade across the world could be at a standstill by 2H20. Air cargo volumes have been hit with tremendous macroeconomic headwinds from a global slowdown that started in late 2017. An intensifying trade war between the US and China has undoubtedly accelerated the global downturn, damaging emerging markets that are highly exposed to exports, like Europe, India, and many countries in Asia.

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Bill Holter’s Commentary

This is true for the entire system from top to bottom!

Beware of Funny Financials
October 11, 2019

(Bloomberg Opinion) — However frothy valuations currently seem to be, optimists can always argue they’re justified by strong earnings. In the past four years, S&P 500 operating earnings per share have grown by nearly 40%.

Those numbers, however, may be as airy as the asset prices they support. The U.S. government’s national income and product accounts — which cover a broader number of businesses than the S&P, use tax returns and adjust for certain accounting practices — suggest that corporate profits actually peaked in 2014 and have been stagnant since. The national accounts also show significant downward revisions to corporate profit margins over the previous five years. While one would expect some discrepancies between that data and S&P numbers, which are based on Generally Accepted Accounting Principles (GAAP), the gulf is too wide to be ignored.

What’s going on? In many cases, accounting choices appear to be distorting results. In early 2019, General Electric Co. reported GAAP losses of $2.43 per share; under adjusted figures it earned $0.65 per share. Tesla Inc. reported full-year GAAP losses of $5.72 per share but “non-GAAP” losses were only $1.33 per share. Over 95% of S&P 500 companies regularly use at least one non-GAAP measure, up about 50% over the last 20 years.

One question is how companies choose to recognize income. In the case of long-term, multi-year contracts, such as construction projects, reported revenue can be based on a formula: a portion of the total contract amount, calculated as costs incurred in the relevant period as a percentage of total forecast costs. Understating estimated final costs allows margins to be increased and greater revenue to be recognized up front.

Following the collapse of Carillion PLC, the firm was found to be aggressive in recording income which was sensitive to small changes in assumptions. Given the trend to converting sales of products (such as software) into long-term service contracts, these risks are only going to grow.

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Bill Holter’s Commentary

This should prove to be some good stuff!  Keep in mind, this whistleblower will have recorded voices/images as opposed to third hand hearsay.  The left while trying to protect an “anonymous” whistleblower, will somehow find fault and call for this person’s head!

“The CNN Tapes Are Coming”: Project Veritas Teases A Coming “CNN Whistleblower”
October 12, 2019

Having exposed the disturbing realities inside Facebook, Google, The New York Times, and The State Department; Project Veritas’ James O’Keefe just hinted at what could be his biggest exposé yet…

Teasing what appears to be a real whistleblower – and remember, these individuals should be protected, according to Schiff et al. – O’Keefe just told an audience in Washington DC that “our next Project Veritas #BeBrave insider is from within CNN.”

 

 

 

 

 

 

 

 

Teasing what appears to be a real whistleblower – and remember, these individuals should be protected, according to Schiff et al. – O’Keefe just told an audience in Washington DC that “our next Project Veritas #BeBrave insider is from within CNN.”

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Posted by & filed under In The News.

J. Johnson’s Latest – All This Daily Activity Is Simply A “Show Of Distractions”
October 11, 2019

Great and Wonderful Friday Morning Folks,   

      Gold is still being hammered during London’s trading period; we think it’s to keep everyone’s mind off all the printing that’s going on that’s collapsing the value of the US Dollar (more to come later). Gold is now trading at $1,486.00, down $15 and right by the low at $1,485.30 with the far away high at $1,508.00. Silver is being brought to bear as well with its trade at $17.44, down 16.2 cents and right by its London low of $17.42 with the high at $17.785. Now we look at the US Dollar’s value with the trade at 98.015, down 39.6 points and recovering from a low of 97.92 with the high at 98.450. Of course, all this happened before 5 am pst, the Comex open, and the London close.   

      In Venezuela, Gold is now valued at 14,841.43 Bolivar proving a loss of 272.65 Bolivar with Silver at 174.182 dropping 3.546 in Bolivar value. Argentina’s Peso now has Gold valued at 86,060.89 showing a 1,316.55 A-Peso drop in value with Silver continuing lower at 1,009.90 reducing the money of the people’s value some 17.66 Pesos. Over in Turkey, where the problems are many, Gold’s trade under the Lira is now at 8,701.39 Lira taking out more than double yesterday’s gains proving a loss of 215.12 in value with Silver now at 102.106 T-Lira, showing a reduction of 2.743 Lira overnight.    

      October Silver Deliveries now show a demand count of 337 fully paid for contracts waiting for receipts and for some reason not getting them filled showing a reduction of 2 from yesterday’s tally and with a Volume of 2 up on the board yesterday. So, once again, is this part of a spread exit or where there 2 more purchases and 4 receipts getting delivered? As of this morning, we have another 2 lot on the Volume side of the ledger and with a trading range between $17.595 and $17.40 with the last price being the low so far.    

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Posted by & filed under In The News.

J. Johnson’s Latest – Another Reason to Hold Precious Metals?
October 10, 2019

Great and Wonderful Thursday Morning Folks,   

      Gold was doing a lot better earlier with the trade now at $1,513.30, up 50 cents after hitting $1,522.30 with the low at $1,508.80. Silver is showing the “weak” signal with its trade at $17.795 down 1.5 cents after the high of $17.935 was reached at the restart of trade last night with the low at $17.695. The US Dollar finally has some movement in it, with its trade down 35.5 points at 98.46, recovering from the low at 98.37 with the high at 98.795. All of this was done before 5 am pst, the Comex open, and the London close.   

      Gold’s value under the Venezuelan Bolivar gained 60.92 overnight with its trade at 15,114.08 Bolivar with Silver losing a little, with its price at 177.728 dropping 0.399 Bolivar. In Argentina, the Peso now has Gold pegged at 87,377.44 Pesos showing a gain of 188.46 with Silver at 1,027.56 Pesos, proving a drop-in value of 4.17 Pesos. In Turkey, the Lira has Gold valued at 8,916.51 Lira giving those that hold a 125.25 T-Lira gain with Silver at 104.849 proving a gain of 0.832 in T-Lira value.   

      October Silver’s Delivery requests are now at 339 fully paid for (5,000 ounce) contracts waiting for receipts and again with zero Volume up on the board so far this morning. During yesterday’s trade 4 purchases showed up with prices yet, as of this morning, the delivery count was only reduced by 4 from yesterday’s numbers. So, where there 4 more purchases bringing the delivery total to 8 receipts or was it only 4? This is the problem in the ledgers the Comex numbers give with their lack of information regarding spreads entering or exiting inside the delivery month.      

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Bill Holter’s Commentary

Maybe not THE most insolvent nation on the planet but certainly the most insolvent in the EU… now issues bonds with a negative yield?  Umm, have the buyers never heard of the concept of “risk premium”?  Absolutely nuts and the entire episode will end as THE biggest credit collapse in all of history,  And remember, when credit goes, so do fiat currencies as they all have one thing in common…they have value because “credit” is their foundation!

For The First Time Ever, Greece Issues Negative Yielding Debt
October 10, 2019

As armies of fixed income strategists battle over whether US Treasuries are facing higher or lower yields, Greece has no such qualms and in a historic shift today, the former bond market pariah and Eurozone’s most indebted nation, joined the exclusive club of negative-yielding European nations when bond investors lined up to pay the nation that was at the heart of Europe’s sovereign debt crisis.

A sale of €487.5 million of 13-week bills on Wednesday drew Greece’s first-ever negative yield of minus 0.02% as investors now pay Athens for the privilege of lending it cash, as Bloomberg first reported. Greece joins the likes of Ireland, Italy and Spain – not to mention virtually all core Eurozone nations – which benefit from the ECB’s insane monetary policy and deepening fears of a global recession.

It’s been an unprecedented turnaround for twice bankrupt Eurozone member, whose bondholders suffered massive losses back in March 2012 when the country was forced to accept the biggest bond restructuring in history, bringing the Eurozone to the verge of collapse.

Just a few years and several trillions in bond purchases by the ECB later, the region is grappling with an altogether different problem – the spread of negative yields, which reduces borrowing costs for governments in a form of soft default, one which is crushing savers, pension funds and insurers, and which has prompted some of the most respected names in finance to shriek in terror as the cost of money in even Europe’s most insolvent nations is now negative.

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Posted by & filed under In The News.

Bill Holter’s Commentary

An excellent article by Ronan Manly. “Transparency” will not just destroy the paper gold markets but the entire system as we know it!

LBMA Needs Reform To Serve The Physical Precious Metals Market
October 8, 2019

Among the wider precious metals community, it would be fair to say that the London Bullion Market Association (LBMA) has always been looked upon with a degree of suspicion. The reasons for the suspicion include:

    That the LBMA banks created and unleashed on to the world the concept of fractional-reserve bullion banking, unallocated precious metal accounts, and synthetic cash-settled paper gold products unbacked or fractionally-backed by physical metal.

    That the founding members of the LBMA were a group of powerful bullion banks and brokers.

    That the LBMA was founded “at the behest” of the Bank of England.

    That the LBMA operates at the nexus of secretive central bank gold lending transactions where transparency is, to say the least, non-existent.

All of these reasons would be valid concerns, but they are not getting to the heart of the issue. The heart of the issue is that the LBMA does not represent the physical gold and silver markets nor does it champion the interests of physical precious metals savers and investors.

Rather, the LBMA promotes and protects and paper gold and silver markets and works on behalf of the bullion banks which operate and control these derivative paper markets through OTC precious metals trading, the London daily price fixings, and COMEX precious metals futures trading. All the while the LBMA with a straight face claims to be the “

” and ““. A global authority appointed by who you might ask? Well, the banks of course!

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J. Johnson’s Latest – Politics And Governments Shutting Down Is Nothing To Worry About (Until?)
October 9, 2019

Great and Wonderful Wednesday Morning Folks,   

      Gold is trading higher but not like earlier with the right now price at $1,507.20, up $3.30 after reaching $1,516.90 with the low close by at $1,505.10. Silver lead the charge and may be leading the calm with the trade at $17.835, up 13.5 cents with the low at $17.72 after hitting $18 before the story about China agreeing again, and again, and again, hit the tape. The US Dollar is stagnated with the trade at 98.745, down 7.7 points with the high at 98.865 and the low at 98.595. All this was done before 5 am pst, the Comex open, and the London close.    

      In our emerging markets currency watch we see a pullback in Gold’s prices but a good strong rally in Silver. In Venezuela, Gold is now priced at 15,053.16 Bolivar proving a reduction of 31.96 in value with Silver at 178.127 giving Silver a 0.703 Bolivar gain. In Argentina, Gold is now priced at 87,188.98 Pesos, it too losing 167.22 Pesos with Silver at 1,031.73 Pesos, a gain of 13.62. The Turkish Lira now has Gold priced at 8,791.26 Lira showing a loss of 25.32 with Silver at 104.017 showing a gain of 1.268 in T-Lira value.    

      October Silver Deliveries now show a request count of 343 fully paid for demands for physical and with zero Volume up on the board so far this morning. This proves a reduction of 5 contracts from yesterday’s early morning quote that either got their physicals here or in London (paper or physical?). Silver’s Overall Open Interest shows a gain as 2,840 more contracts were added to the mix in order to keep liquidity happy giving us an early count of 214,136 Overnighters keeping Silver in place.    

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Jim Sinclair’s Commentary

More than half of the amount of munis held by households—a third of the $4 trillion market—now sits in separately managed accounts or mutual funds, a trend that has changed the way the bonds are sold.

This trend exists not only in the muni market but has just been accelerated in the equity market. The idea of trading for free has eliminated the broker dealer leaving only major funds and EFTs as equity traders. This has very significant implications for what future markets will look like along with future implications of AI.

Money Managers Gain Sway Over Muni Market [Subscription Required]
October 9, 2019

A larger-than-ever share of municipal bonds is being managed by professionals, shaking up a market that has traditionally been the domain of mom- and-pop investors.

The rapid expansion of muni money managers, under way for more than a decade, reached a milestone in the past year: More than half of the total amount of muni bonds held by households—a third of the $4 trillion market—now sits in separately managed accounts or mutual funds.

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Jim Sinclair’s Commentary

Even with a rebound on trade hopes, the KBW Nasdaq Bank Index of large bank stocks has fallen more than 4% this month, compared with a 2% decline for the S&P 500

Apparently, more people understand the genesis of the problem in the repo market than before.

The Rebound in Bank Stocks Was Short-Lived
October 9, 2019

Bank stocks have erased much of their September rally and are sliding once again in October, hurt by bets on lower interest rates and expectations for a turbulent earnings season.

Even with a rebound on trade hopes Wednesday, the KBW Nasdaq Bank Index of large bank stocks has fallen 4.7% so far this month, compared with a 1.9% decline for the S&P 500. In the past 12 months, the gauge of lenders has slid 11%, while the S&P is slightly higher.

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Jim Sinclair’s Commentary

So far, trade talks have resume multiple times and in all probability will continue that partner?

Trade Talks Resume at Pivotal Moment in U.S.-China Relations
October 9, 2019

WASHINGTON—Senior U.S. and Chinese officials will square off for trade talks Thursday at a pivotal moment in the countries’ relationship, with higher tariffs looming if negotiators fail to break a five-month stalemate.

The backdrop for the talks has become more complicated. What started as a U.S. assault on Chinese trading practices has become muddied by other issues, from China’s repression of its Muslim minorities to the possible impeachment of President Trump.

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Posted by & filed under In The News.

J. Johnson’s Latest – Silver’s Open Interest Keeps Dropping but Not Their Call Options….
October 8, 2019

 Great and Wonderful Tuesday Morning Folks,   

      Gold is trading higher after yesterday’s game of shorts went bust with the trade now at $1,510.40, up $6 from the low at $1,492.10 with the high close by at $1,512.40. Silver is following along with the trade at $17.605, up 6.5 cents after being dipped down to $17.305 with its high close by at $17.65. The US Dollar is down 6 points at 98.605 with its high at 98.73 and the low at 98.54. All of this reversal happened during London’s play time, before 5 am pst, the Comex open, and before London is done.    

      Our Emerging Markets Currency Watch is proving how right we are about the fiat crisis with Gold under the failed currency called the Venezuelan Bolivar now trading at 15,085.12 showing a gain of 56.93 Bolivar with Silver now at 175.830 giving the people a 0.899 Bolivar profit. In Argentina, the failed currency called the Peso now has Gold valued at 87,356.20 Pesos, proving a gain of 567.31 overnight with Silver’s gain posting a 7.91 A-Peso profit with the price at 1,018.11 Pesos. The Turkish Lira now has Gold priced at 8,816.58 showing what Gold can do when their president decides to make the value of its currency, umm unstable, proving 176.06 T-Lira gain in Gold’s value with Silver now at 102.749 T-Lira proving a gain of 2.176 in the overnight.    

      October Silver Deliveries keeps chugging along with the total request count now at 348 demands for physical and with Zero Volume up on the board so far this morning. Yesterday’s activity proved 8 contracts traded “with a price” yet the total count dropped 17 giving us the understanding that some of these demands were either settled out here at the COMEX or got papered over in London. Until we know for a fact (a full untampered viewable paper trail) what has happened to the supposed deliveries in London, we will continue to challenge the idea that these are actual physical deliveries of real product or it’s just paper transferred from one failed institution going to another on the verge of bankruptcy.     

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Posted by & filed under In The News.

Bill Holter’s Commentary

Please keep in mind that no Ponzi scheme can survive (period!) without new money…think the Fed is going to need a bigger hose? QE to infinity was correct when Jim coined the term and is extremely correct now with the Fed’s back against the wall.

Velocity of M2 Money Stock

 

 

 

 

 

 

 

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Bill Holter’s Commentary

…in a year or two this will look like a GREAT DEAL for pensioners as the piper arrives demanding payment!

GE To Freeze Pensions For 20,000 Workers
October 7, 2019

General Electric Co. said it was freezing its pension plan for about 20,000 U.S. workers and offering pension buyouts to 100,000 former employees, as the conglomerate joins the ranks of U.S. companies phasing out a guaranteed retirement.

GE is one of the rare big U.S. manufacturers that still allows salaried workers to accrue traditional pension payments, though it closed its plan to new participants in 2012. The company’s profits have evaporated in recent years, prompting GE to slash its dividend and Chief Executive Larry Culp to look for ways to pare it debts.

Some Expected Larry Culp to Break Apart GE. Instead, He’s Trying to Fix It.

GE’s traditional pension plans, which were underfunded by $27 billion as of the end of 2018, are one of the company’s biggest liabilities. The company said the latest changes could reduce its pension deficit by as much as $8 billion.

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Bill Holter’s Commentary

Negative interest rates? The snake eats its own tail!

“Money’s Not Worth Anything Anymore” – Ex-Credit Suisse CEO Blasts “Crazy” Negative Rates
October 7, 2019

Oswald Gruebel, who served as Credit Suisse CEO from 2004 to 2007 and as UBS Group AG’s top executive from 2009 to 2011, has slammed ECB policy in an interview with Swiss newspaper NZZ am Sonntag.

“Negative interest rates are crazy. That means money is not worth anything anymore,” Gruebel exclaimed.

“As long as we have negative interest rates, the financial industry will continue to shrink.”

Who can blame him – judging by the all-time low in European inflation expectations, ECB policy has been an utter failure…

 

 

 

 

 

 

 

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J. Johnson’s Latest – Silver’s December Call Options Stand Out Like a Sore Thumb!
October 7, 2019

Great and Wonderful Monday Morning Folks,  

     Even though there is every reason in the world to see the precious metals skyrocket this morning we are seeing it once again being held back with Gold now at $1,504.70 down $8.20 with the London low at $1,502.80 with the start pretty much being the high at $1,518.80. Silver is down but not like Gold with its trade at $17.515 down 11 cents after dropping to $17.435 during the London trade with its high at $17.70, its starting price as well. The US Dollar, which seems to be in the hands of the international print controllers, is still being supported with the trade at 98.55, up 6.2 points after reaching up to 98.68 with the low at 98.43. All of this was done starting Sunday Night at 3pm pst, before 5 am, the Comex Open, and the London close.  

     In Venezuela, Gold is now trading at 15,028.19 Bolivar showing a drop of 94.88 from Friday mornings write up with Silver at 174.931 Bolivar losing 1.199 over the weekend. In Argentina, Gold is now valued at 86,788.89 Pesos showing a reduction of 526.44 Pesos with Silver at 1,010.20 Pesos dropping 6.78 in Peso value. Over in Turkey, the Lira now has Gold valued at 8,640.52 giving the noble metal a 16.02 T-Lira gain with Silver at 100.573 Lira showing a slight gain of 0.127 in T-Lira value.  

October Silver Deliveries continue with the demand count now at 365 fully paid for (5,000 ounces) contracts and with a Volume of 1 up on the board so far this morning with the buy price at $17.45. The Demand Count was reduced by 85 contracts that either received their receipts here or in London on the last trading day before the Chinese Golden Week ends. Silver’s Overall Open Interest, the game we’ve been focusing on for the past 3+ years now, has a total count of 211,678 Overnighters proving another 1,477 Obligations have left the field of play as we slowly see the game players reduce their risks.    

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Bill Holter’s Commentary

This ex bartender could never have come up with this herself, the ghosts of Marx and Salinsky must have helped out? Some truly crazy stuff but at least she does not promise a free “unicorn in every pot”!  Additionally, I mentioned this to my Costa Rican horse this morning and he is pissed, he wonders why he had to enter the US legally and without promises of “free shit”?

Congresswoman Alexandria Ocasio-Cortez

Representative Ocasio-Cortez believes that we must build a just society to protect our communities and uplift our neighbors. A Just Society legislation aims to combat one of the greatest threats to our country, our democracy, and our freedom: economic inequality.

It is for that reason that Representative Ocasio-Cortez introduced these measures, to fight to address economic injustice. These stark inequalities are being used by those in power to amplify fear and anger in our communities and further divide us. We must act boldly and swiftly to reverse the corrosive effects extreme inequality and poverty are having on our society.

A Just Society aims to ensure that we are on a path towards shared prosperity for all. A just society provides a living wage, safe working conditions, and healthcare. A just society acknowledges the value of immigrants to our communities. A just society guarantees safe, comfortable, and affordable housing. By strengthening our social and economic foundations, we are preparing ourselves to embark on the journey to save our planet by rebuilding our economy and cultivate a just society.

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Jim Sinclair’s Commentary

The last political speech in the US dealt with how high the US economy was…?

Stocks Tick Lower as Investors Await Trade Developments
October 7, 2019

U.S. stocks inched lower Monday, weighed down by declines among shares of consumer staples companies.

Trading was relatively quiet with no data of note released in the U.S. and few developments on the U.S.-China trade front. Major indexes flitted between small gains and losses for much of the session before turning lower in the afternoon.

As the week progresses, traders say they will be keeping their eyes on headlines emerging from Washington, where high-level officials are set to meet to discuss the U.S. and China’s trade relationship.

With expectations low among investors, even a partial deal might be enough to help keep things on track, said Geoffrey Yu, head of the U.K. investment office at the wealth-management arm of UBS.

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Jim Sinclair’s Commentary

Some investors are concerned that recent turmoil in a key short-term cash market, where banks borrow to fund operations that could exacerbate difficulties in trading bonds.

Behind every event in interest rate markets, there is a cost. The cost can easily be manipulation but not in this case. The cause is the hidden failure of a financial institution , replacing the financial institution with a problem, and the support of that problem through the near term cash market in the form of a beard.

Wild Swings in Repo Rates Raise Concerns About Bond Market’s Liquidity
October 7, 2019

Some investors are concerned that recent turmoil in a key short-term cash market where banks borrow to fund operations could exacerbate difficulties trading bonds.

Spikes in the cost of overnight loans using repurchase agreements, or repos, could hit bond trading in two ways, investors and analysts said. Rising repo rates make it more expensive for securities dealers to borrow money and to hold government bonds—actions they take frequently to facilitate client trades and manage their risks.

In the repo market, where banks and money-market mutual funds typically lend cash for periods as short as one night in exchange for safe collateral such as Treasurys, rates surged as high as 10% last month from about 2.25% amid an unexpected shortage of available cash in the financial system.

Bond investors tend to worry about liquidity, or the ability to buy or sell a particular security, because the market doesn’t have a central exchange and a lack of trading partners could create wide gaps in prices at times of market stress. Differences in the various features of corporate bonds, which are often issued in relatively small sizes, can also make trading difficult.

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Jim Sinclair’s Commentary

If they got any looser, they’d come untied.

Investors Should Fear More Competition Among Ratings Companies
October 7, 2019

Inflated ratings on complex debt structures were one of the culprits of the 2008 financial crisis. While standards have since tightened a lot, new ratings companies threaten to loosen them again.

Back in August, an exhaustive data analysis by The Wall Street Journal found that the three challenger ratings companies—DBRS, Kroll Bond Ratings Agency and Morningstar—tend to rate bonds more highly than the three established ones— Moody’s, S&P Global and Fitch Ratings.

Now, there are signs that the arrival of Kroll into Europe’s structured credit market this summer also is starting to push down credit standards.

Collateralized loan obligations, or CLOs, have experienced a boom over the past few years, as record-low interest rates have pushed investors into all sorts of higher-yielding paper. CLOs are portfolios of bank loans to heavily indebted corporations that are sliced into tranches with different levels of risk. Despite the scary acronym, they actually withstood the financial crisis even as the market for other types of complex debt collapsed.

But signs of frothiness are slowly creeping in. Companies are getting more indebted and lenders’ ability to attach conditions to the loans underpinning CLO portfolios—so-called covenants—has waned.

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