Posts Categorized: In The News

Posted by & filed under In The News.

  Bill Holter’s Commentary

This should not be a surprise to anyone who’s been paying attention.

Say Hello To Russian Gold And Chinese Petroyuan
March 15, 2022

The Russia-led Eurasian Economic Union and China just agreed to design the mechanism for an independent financial and monetary system that would bypass dollar transactions.

By Pepe Escobar with the author’s permission and cross-posted with The Cradle

It was a long time coming, but finally some key lineaments of the multipolar world’s new foundations are being revealed.

On Friday, after a videoconference meeting, the Eurasian Economic Union (EAEU) and China agreed to design the mechanism for an independent international monetary and financial system. The EAEU consists of Russia, Kazakhstan, Kyrgyzstan, Belarus and Armenia, is establishing free trade deals with other Eurasian nations, and is progressively interconnecting with the Chinese Belt and Road Initiative (BRI).

For all practical purposes, the idea comes from Sergei Glazyev, Russia’s foremost independent economist, a former adviser to President Vladimir Putin and the Minister for Integration and Macroeconomics of the Eurasia Economic Commission, the regulatory body of the EAEU.

Glazyev’s central role in devising the new Russian and Eurasian economic/financial strategy has been examined here. He saw the western financial squeeze on Moscow coming light-years before others.

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Bill Holter’s Commentary

We knew this day was coming several years ago when the Saudis met with Putin and Xi…

Petrodollar Cracks: Saudi Arabia Considers Accepting Yuan For Chinese Oil Sales
March 15, 2022

One of the core staples of the past 40 years, and an anchor propping up the dollar’s reserve status, was a global financial system based on the petrodollar – this was a world in which oil producers would sell their product to the US (and the rest of the world) for dollars, which they would then recycle the proceeds in dollar-denominated assets and while investing in dollar-denominated markets, explicitly prop up the USD as the world reserve currency, and in the process backstop the standing of the US as the world’s undisputed financial superpower

Those days are coming to an end.

One day after we reported that the “UK is asking Saudis for more oil even as MBS invites Xi Jinping to Riyadh to strengthen ties”, the WSJ is out with a blockbuster report, noting that “Saudi Arabia is in active talks with Beijing to price its some of its oil sales to China in yuan,” a move that could cripple not only the petrodollar’s dominance of the global petroleum market – something which Zoltan Pozsar predicted in his last note – and mark another shift by the world’s top crude exporter toward Asia, but also a move aimed squarely at the heart of the US financial system which has taken advantage of the dollar’s reserve status by printing as much dollars as needed to fund government spending for the past decade.

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Bill Holter’s Commentary

Tom Luongo describes the mechanism to reset. Do you remember hearing there are as many as 300+ paper claims to gold ounces available for delivery?


The Ins and Outs of Whose Money is it Anyway?
March 13, 2022


There’s been a massive reaction to Credit Suisse analyst Zoltan Poszar’s note about the birth of a new Bretton Woods agreement.

Every investor in the world should read it. Zerohedge posted (behind their paywall) a lengthy analysis of Poszar’s musing along with some reactions from Wall St. It is well worth your time.

The people most freaked out about this note are the Keynesians who worship at the altar of what Poszar calls Inside Money — money that only exists inside the financial system, bonds, credit, dollars, euros, etc.

Austrians, like myself, have always understood that eventually Inside Money fails because it is ultimately nothing more than a Ponzi Scheme built on top of Outside Money — money that exists outside the financial system, like commodities and bitcoin.

Poszar makes his early case and then goes through the mechanics of what is happening in the financial plumbing of the world economy right now to prove the stresses are real and building quickly towards an implosion of Inside Money and an explosion of Outside Money.

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  Bill Holter’s Commentary

This just issued today by the SEC, sounds like they expect a few margin calls in the near future?  The entire system IS a margin call but at least they can say they warned you ahead of time!

TM Staff Statement
Division of Trading and Markets

March 14, 2022

Staff of the Division of Trading and Markets (“Staff”) urges broker-dealers and other market participants to remain vigilant to market and counterparty risks that may surface during periods of heightened volatility and global uncertainties. It is always prudent that broker-dealers have strong risk management practices. In particular, broker-dealers should be mindful of the following.

Broker-dealers should collect margin from counterparties to the fullest extent possible in accordance with any applicable regulatory and contractual requirements.
Concentrated positions of prime brokerage counterparties pose particular concerns. Staff urges broker-dealers to seek sufficient information to determine counterparties’ aggregate positions in any markets that may experience liquidity concerns and work with the counterparties to mitigate risk.

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Bill Holter’s Commentary

What, no dollars?

India Is Mulling Rupee-Ruble Payments System For Trade With Russia
March 12, 2022

Authored by Jerri-Lynn Scofield via NakedCapitalism.com,

India is discussing how to set up a rupee-ruble payment mechanism to enable it to trade with Russia, to circumvent the U.S. sanctions regime.

India abstained from voting on the March United Nations (UN) General Assembly Resolution demanding an end to Russian offensive in Ukraine (General Assembly resolution demands end to Russian offensive in Ukraine).

Since its Independence, India has tried to steer a neutral course between the U.S. and Russia (and previously, the USSR). During the 1950s, India’s first prime minister, Jawaharlal Nehru, was a prime architect behind the Non-Aligned Movement, under which developing countries tried to pursue their national interests without binding themselves to either the U.S. or Soviet bloc.  India, Indonesia, and Yugoslavia were mainstays of that movement, which today includes 120 member states, 18 observer states, and 10 international organisations.

Following the collapse of the Soviet Union, India developed closer relations with the United States. Most recently, under prime minister Narendra Modi, India’s policy tilted even more decisively in a pro-U.S. direction. Modi and Trump shared a strong affinity, and Modi even travelled to the U.S, to host massive rallies intended to galvanize Indian Americans in support of Trump. See this BBC account for further details, What did the Trump-Modi ‘bromance’ achieve?

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Bill Holter’s Commentary

Not the Onion? I have too many funny thoughts on this to comment, but will instead leave you to your imagination!

Jpmorgan Says It’s Hiring ‘Thousands Of Individuals With Criminal Backgrounds’ Amid The Labor Shortage
March 11, 2022

JPMorgan says it’s pulling out all the stops to combat the labor shortage that’s affecting many US businesses. That includes casting a wider net and hiring people that have historically had difficulty finding employment.

The US’ largest bank has hired thousands of people with criminal records and hundreds with disabilities like autism, Brian Lamb, JPMorgan’s global head of diversity, equity, and inclusion, said during a CNBC event on Thursday. JPMorgan employs well over 200,000 people.

Contending with the labor shortage — which has seen masses of Americans walk off the job and made it more difficult for employers to hire — “is going to require unconventional approaches,” Lamb said. Job seekers no longer need to answer questions about their criminal backgrounds on the bank’s initial applications, he said.

The company is “tapping into the talent pools that have historically been left behind,” Lamb said. Formerly incarcerated people often have a more difficult time getting hired.

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Posted by & filed under In The News.

Bill Holter’s Commentary

Conspiracy theory yesterday but fact today…

Victoria Nuland: Ukraine Has “Biological Research Facilities,” Worried Russia May Seize Them
March 9, 2022

Self-anointed “fact-checkers” in the U.S. corporate press have spent two weeks mocking as disinformation and a false conspiracy theory the claim that Ukraine has biological weapons labs, either alone or with U.S. support. They never presented any evidence for their ruling — how could they possibly know? and how could they prove the negative? — but nonetheless they invoked their characteristically authoritative, above-it-all tone of self-assurance and self-arrogated right to decree the truth, definitively labelling such claims false.

Claims that Ukraine currently maintains dangerous biological weapons labs came from Russia as well as China. The Chinese Foreign Ministry this month claimed: “The US has 336 labs in 30 countries under its control, including 26 in Ukraine alone.” The Russian Foreign Ministry asserted that “Russia obtained documents proving that Ukrainian biological laboratories located near Russian borders worked on development of components of biological weapons.” Such assertions deserve the same level of skepticism as U.S. denials: namely, none of it should be believed to be true or false absent evidence. Yet U.S. fact-checkers dutifully and reflexively sided with the U.S. Government to declare such claims “disinformation” and to mock them as QAnon conspiracy theories.

Unfortunately for this propaganda racket masquerading as neutral and high-minded fact-checking, the neocon official long in charge of U.S. policy in Ukraine testified on Monday before the Senate Foreign Relations Committee and strongly suggested that such claims are, at least in part, true. Yesterday afternoon, Under Secretary of State Victoria Nuland appeared before the Senate Foreign Relations Committee. Sen. Marco Rubio (R-FL), hoping to debunk growing claims that there are chemical weapons labs in Ukraine, smugly asked Nuland: “Does Ukraine have chemical or biological weapons?”

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Bill Holter’s Commentary

Or ever before in history?

Markets Are Now More Vulnerable To Systemic Stress On A Scale Not Seen Since The Global Financial Crisis
March 9, 2022

By Ven Ram, Bloomberg Markets Live commentator and analyst

What’s common to the euro swooning more than 3% in a week, countries in Europe issuing bills and re-opening bonds every other day as repos go special, while nickel prices double in short order to touch $100,000 a ton?

All measures of extraordinary distress in the markets, that’s what. JPMorgan Chase’s head of trading, Troy Rohrbaugh, captures it succinctly when he says that the markets are “extremely treacherous at the moment.”

Yet, given the widespread sanctions on Russia, major credit cards suspending transactions as well as businesses pulling out of the country right, left and center, the story of acute market stress may be just starting to unfold.

Somewhere in all this stage of unadulterated melee, inflation balloons are soaring. So high that DoubleLine Capital’s Jeffrey Gundlach fears the headline number in the U.S. could reach 10% this year. Yet in a quiet corner of that stage, the Fed is trying to figure out the mood music, but is still convinced that baby steps of 25 basis points, taken one step at a time, will be enough to bring down price pressures while also ensuring a soft landing for the economy.

The combination of runaway inflation, pockets of distress and a short squeeze causing a surge in commodity prices all mean that the markets are now more vulnerable to the prospect of systemic stress on a scale not seen since the global financial crisis.

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Bill Holter’s Commentary

Or ever before in history?

Markets Are Now More Vulnerable To Systemic Stress On A Scale Not Seen Since The Global Financial Crisis
March 9, 2022

By Ven Ram, Bloomberg Markets Live commentator and analyst

What’s common to the euro swooning more than 3% in a week, countries in Europe issuing bills and re-opening bonds every other day as repos go special, while nickel prices double in short order to touch $100,000 a ton?

All measures of extraordinary distress in the markets, that’s what. JPMorgan Chase’s head of trading, Troy Rohrbaugh, captures it succinctly when he says that the markets are “extremely treacherous at the moment.”

Yet, given the widespread sanctions on Russia, major credit cards suspending transactions as well as businesses pulling out of the country right, left and center, the story of acute market stress may be just starting to unfold.

Somewhere in all this stage of unadulterated melee, inflation balloons are soaring. So high that DoubleLine Capital’s Jeffrey Gundlach fears the headline number in the U.S. could reach 10% this year. Yet in a quiet corner of that stage, the Fed is trying to figure out the mood music, but is still convinced that baby steps of 25 basis points, taken one step at a time, will be enough to bring down price pressures while also ensuring a soft landing for the economy.

The combination of runaway inflation, pockets of distress and a short squeeze causing a surge in commodity prices all mean that the markets are now more vulnerable to the prospect of systemic stress on a scale not seen since the global financial crisis.

More…

Bill Holter’s Commentary

Why the fuss…hadn’t they already told you that gold is nothing but a “pet rock”?

US Tees Up “Stop Russian Gold Act”, Triggering LBMA And COMEX To Eject Russian Refiners
March 9, 2022

When the UK, US and EU moved to introduce financial sector sanctions against Russia during the week of 21 – 25 February, one set of markets notably hesitant to join the fray were the OTC precious metals markets in London and by extension the precious metals futures markets run by the COMEX.

Awaiting Instructions – LBMA and COMEX

While the London Bullion Market Association (LBMA) quietly moved to kick out Russian banks VTB, Sovcombank, and Orkritie from LBMA membership sometime around 24 – 25 February (and without any sort of announcement), the LBMA appeared to be unable to come to a decision about the 6 LBMA-accredited Russian precious metals refineries on the LBMA Good Delivery Lists of Gold and Silver. This was despite the fact that it was completely obvious that the structural nature and operational activities of these Russian refineries broke the LBMA’s own ‘Good Delivery Rules’ in terms of breaching US-UK-EU sanctions.

Specifically, these six Russian refineries are Krastsvetmet, Prioksky, Novosibir, Uralelectromed, Moscow Special Alloys Plant, and Shyolkosky.

Hence the BullionStar article on 28 February titled “”.

That article also pointed out that every LBMA accredited gold and silver refinery is also on the CME (COMEX) approved brands list (for warranting and delivery), a situation which arose following a CME mass approval in August 2020 of 267 LBMA Good Delivery List gold and silver refineries. Which meant that the 6 Russian precious metals refiners in question were also on the COMEX approved refiner brands list.

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Bill Holter’s Commentary

Pastor Stanley on Victoria Nuland’s admission.

Before Russia and China destroy America The Lord Will Reveal The Sins Of The Leaders To The People And The Sins Of The People Before Their God-Nuland Exposes US As Funding 26 Biolabs In Ukraine
March 9, 2022

According to an article in yesterday’s Zero Hedge ‘Nuland Warns Russia May Seize Ukraine Biolabs, Could Stage False Flag Using Bioweapons’ …’On Tuesday morning, Bloomberg reported that China had accused the US military of operating “dangerous” biolabs in Ukraine’…

Meanwhile, a British source published via Twitter ‘RUSSIA PUBLISHES DOCUMENTS ALLEGING UKRAINE AND US WERE WORKING ON ANTHRAX AND PLAGUE IN BIOLABS’ …’BREAKING: Russia publishes documents which show Ukraine was working on biological weapons near russian borders — such as Anthrax and Plague & that the pentagon has instructed to destroy them — violating article 1 UN prohibition of biological weapons.  — These are US funded labs’…

So these allegations are out there and of course the mainstream media in the US are not making this the important story it should be.

So for all of the neocon (neokommie) news outlets-before you shout ‘conspiracy theory’!-let’s take a look at the news that you refuse to report on…

US Undersecretary of State Victoria Nuland told Sen. Marco Rubio during a hearing that the labs do indeed exist.

Boom.

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Posted by & filed under In The News.

Bill Holter’s Commentary

Please see the charts in this article…does 25-50-75% moves smell like something is resetting to you?

Carnage Everywhere As Market “Begins To Break”
March 8, 2022

There is no other way to describe today’s market carnage than a market in turmoil where things are rapidly breaking as the sudden disappearance of Russia’s “toxic” commodity collateral is suddenly sparking contagion and widespread liquidations.

With S&P futures a one way elevator lower after a modest rip higher on Ukraine ceasefire optimism early in the session, sending spoos more than 120 points down from session highs and closing down 2.9%, below 4,200, its worst close since October 2020…

…and the Dow tumbling more than 800 points, everything was in the red, with the exception of the defensive utility sector and of course energy which is basking in the glow of a historic surge in the commodity space.

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Bill Holter’s Commentary

What is the value of a contract that cannot perform?

The Big Question on Wall Street Is Which Banks Owe $41 Billion on Credit Default Swaps on Russia
March 7, 2022

There is a known $41 billion in Credit Default Swaps (CDS) on Russian debt. There is likely many billions more in unknown amounts. There are also billions more in Credit Default Swaps on state-owned Russian corporate debt and non state-owned Russian corporate debt.

In addition to Wall Street not knowing which global banks and other financial institutions are on the hook to pay out on the Credit Default Swap protection they sold in case of a Russian sovereign debt default (or Russian corporate debt default), there is also approximately $100 billion of Russian sovereign debt (whose default is looking more and more likely) sitting on the balance sheets of foreign banks.

Put it all together and you have the makings of a replay of the 2008 banking crisis when banks backed away from lending to each other because they didn’t know who would fall next from toxic subprime exposure. That led to a liquidity crisis and the unprecedented involvement of the Federal Reserve secretly pumping trillions of dollars into the megabanks on Wall Street and their foreign derivative counterparties.

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Posted by & filed under In The News.

Bill Holter’s Commentary

Who could’ve seen this coming?

Goldman Says Gold Is The Currency Of Last Resort; Trumps Treasuries As Haven-Of-Choice
February 28, 2022

In the last month, as global geopolitical tensions have soared, gold has dramatically outperformed peer ‘safe-havens’ such as US Treasuries, bitcoin, and the swiss franc.

“Gold may continue to outperform other haven assets, with an added tailwind from central bank purchases and also displaying its characteristic as an inflation hedge,” said Yeap Jun Rong, a strategist at IG Asia Pte.

“The conflict has not seen any signs of easing and further escalation may heighten risks of persistent inflationary pressures, which will continue to draw traction for gold prices.”

All three asset-classes had traded with a relatively high correlation for the last few years, but the last two months have that change dramatically…

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Bill Holter’s Commentary

I hate to ask but, game over for who?

“Game Over?” – Russia To Be In Technical Default Within Hours
March 1, 2022

More than two decades ago, on August 17, 1998, Russia defaulted on its debt and devalued the ruble, sparking a political crisis that culminated with Vladimir Putin replacing Boris Yeltsin and which also eventually resulted in the spectacular implosion of a then little known hedge fund called Long Term Capital Management (which was staffed to the gills with “brilliant” Nobel prize winners) which after receiving a Fed-led Wall Street bailout, ushered in the era of too big to fail.

We bring this up because in just a few hours, Russia will be in another technical default.

Amid the flurry of capital controls imposed by Moscow today, the Russian central bank banned coupon payments to foreign owners of ruble bonds known as OFZs in what it said was a temporary step to shore up markets in the wake of international sanctions. What it really is, is a technical default on upcoming interest and maturity payments, with a trigger due as soon as tomorrow.

The Bank of Russia issued the instruction to depositaries and registries as part of a raft of measures announced this week that included a freeze on local security sales by foreigners. It could leave foreign investors who held almost 3 trillion rubles ($29 billion) in the debt at the start of February unable to collect income on their holdings, which are already blocked from sale by restrictions.

“Issuers have the right to make decisions on the payment of dividends and the making of other payments on securities and transfer them to the accounting system,” the central bank said in an emailed reply to questions. “However, the payments themselves will not be made by depositories and registrars to foreign clients. This also applies to OFZ.”

The decision by the central bank was taken to “avoid mass sales of Russian securities, the withdrawal of funds from the Russian financial market and to support financial stability,” it said.

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