Posts Categorized: Jim’s Mailbox

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From our friend Werner. Classic hyperinflation in Venezuela. Stocks to the moon in local currency but flushed down the toilet in terms of gold…

Bill

Bill,

The purchasing power of the currency is plunging, collapsing

From the end of August 2018 until now, the Bursatil Stock index has appreciated by 89,638% (this is 89 thousands 638%, not 89.6%) in Bolivar soberano terms.

But in US dollar terms, stocks lost 71% of their value.

image0

During the same period, Gold has appreciated by 444,377% (444 thousands 377%) in Bolivar terms. AMAZING!

CIGA Werne

Posted by & filed under Jim's Mailbox.

Jim/Bill,

An avalanche will take out even the strongest trees. When it gets going, nothing can stand in its way.

Dave

America’s Largest Mall On Verge Of Default After Missing Two Loan Payments
May 21, 2020

Even before the coronavirus pandemic, US malls were in a crisis, with vacancies in January hitting a record high.

shopping vacancy

However, in the post-corona world, commercial real estate has emerged as one of the most adversely impacted sectors (perhaps because the Fed has so far refused to bail it out), with the number of new delinquencies soaring to a record high in recent weeks.

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Jim/Bill,

File under avalanche theory….

Dave

Here Comes The Wave: Loan Defaults Hit 6 Years High
May 22, 2020

Two weeks ago, when looking at the recent flurry of chapter 11 filings and a striking correlation between the unemployment rate and loan delinquencies, we said that a “biblical” wave of bankruptcies is about to flood the US economy.

shopping vacancy

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CIGA Lon checks in with a topic soon to be extremely relevant.  Those who have protected themselves will still be standing yet see most everything fallen down around them.  When the time comes, even though you have been thought and spoken of as an idiot, be charitable!

Bill

Jim & Bill,

There is no need to respond; I know you are both very busy and doing a great job in trying to bring people to a better understanding of what is going to happen and how it is unfolding now.

I heard something in the message from last Saturday that was sent to me yesterday… First, thank you for sending it. It said near the end that the goal is to make it to the ‘other side of the crises’ with assets that can then be deployed to make life very comfortable for the individual. I fully agree with the intent…but I think something is also important. Someone said to finish first one must first finish.

When I was the CFO of a company called Charlotte Russe and doing very well personally and financially; I got the news that my legally separated mother and father were dying and so was my younger unmarried sister. They lived in three very widely separate parts of the country. My wife and I have always worked and lived on less than what we made and our only daughter was very fortunate to have an athletic scholarship to the university she was attending. God has been good to us.

I gave Charlotte Russe a few of months’ notice of my intent to leave and take care of my family. That was not exactly what I wanted to do as my wife and I tried to get ready for a hoped comfortable retirement. I fully enjoyed my job, chosen field of endeavor and continued to consult for several years based on when I could fit it in which meant a reduced income (I’m not a very good salesman….including selling myself).

The point of this is that a lot of people, for a myriad of reasons, are not ready or prepared for this financial crisis. My wife and I don’t donate to organizations but as individuals we help others with funds anonymously and personally over rough spots in life. Though we are careful to give a hand-up and not a handout.

I don’t want any response to this letter, but I do believe that those that have the knowledge and/or, assets should have a goal of helping others during this crises to get through it…..Just as you two are, and have been doing with your financial knowledge and experiences in opening the eyes and ears of those willing to listen and learn. I truly believe there are a lot of people who will need what can be spared by others to get through this mess. That too is a reasonable use of assets and part of the Judeo-Christian ethics of our country.

Lon Gilbert

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Jim/Bill,

I told listeners the bulk of the bail out money would NOT go to Main Street, it would go to Wall Street!

Dave

Senators Express Outrage at Hearing over Mnuchin’s Sneakiness with $500 Billion of Taxpayers’ Money
May 20, 2020 ~

Steve Mnuchin Gives Interview to CNBC Outside of White House on Friday, March 13, 2020

U.S. Treasury Secretary Steve Mnuchin

We’ve been watching Senate Banking Committee hearings for decades. There is typically some level of professional politeness by Senators toward witnesses that are testifying. That didn’t happen yesterday. Both Republicans and Democrats lashed out at Treasury Secretary Steve Mnuchin for effectively cooking up a deal that put him in charge of $500 billion of taxpayers’ money under the stimulus bill known as the CARES Act and has now left Congress in the dark about how that money is being spent. During the hearing, which was held virtually, Senator Elizabeth Warren of Massachusetts summed up the situation to Mnuchin like this: “You are boosting your Wall Street buddies and leaving Americans behind.”

The hearing was called to hear from both Mnuchin and Fed Chair Jerome Powell. The CARES Act, irresponsibly, gave Mnuchin control of $500 billion, of which $454 billion was earmarked to go to the Fed to be leveraged into a $4.54 trillion bailout program. Apparently, Democrats were promised the money would go to help Main Street while the actual crafters of the legislation conveniently forgot to put that language in the bill. The bulk of the numerous programs set up by the Fed, which will use CARES Act money to absorb losses, are structured as bailout programs for Wall Street or the fossil fuels industry.

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Posted by & filed under Jim's Mailbox.

Warren does some math for us from the US debt clock. As you can see, no matter which category of debt you look at, if our “supposed” gold were needed to settle that debt then the dollar price of gold would need to be multiples higher. If Ft. Knox gold was required to cover the entire debt pyramid, we see a VERY LARGE NUMBER! Leaving you with a question, will there be more, or less debt in the future? Either answer can be argued but the result is the same either way…fiat currency burns up in a very large cloud of smoke!

Hi Bill and Jim,

I thought I would add the Fed Balance Sheet and US Consumer Debt to the numbers too… shocking when looking at the big picture. Take your pick of any number and the Gold price should be multiples higher!

Data sources:

https://www.usdebtclock.org/

https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

https://www.statista.com/chart/19955/household-debt-balance-in-the-united-states/

namgcnpadacpdoii

Cheers,
Warren

Jim/Bill,

The story never changes. Wall Street gets a bail out, the tax payer gets the bill.

Dave

Taxpayers Are on the Hook for 98 Percent of the Fed’s $6.98 Trillion Balance Sheet
May 19, 2020 ~

If there has been any positive outcome from the COVID-19 pandemic, it has been that the American people are beginning to take a cold, hard look at how the U.S. economy has been engineered as a vast wealth transfer system for the one percent.

We have peeled back the dark curtain further today on how the Federal Reserve has been structured as an unlimited money spigot to enrich that one percent as it privatizes profits for the criminally-inclined Wall Street titans and socializes the losses to the law-abiding 99 percent of hardworking Americans.

The Federal Reserve Board of Governors consists of seven individuals appointed by the President of the United States and confirmed by the U.S. Senate. As of today, only five of those Governor seats have been filled. As of last Wednesday, these five unelected individuals were overseeing a balance sheet of $6.98 trillion at the Federal Reserve, which is 28 percent of the $25.3 trillion federal government debt that is overseen by 100 elected Senators and 435 elected members of the House of Representatives.

Over just the past year, those five unelected Fed Governors have grown the Fed’s balance sheet by $3 trillion in order to bail out bad bets on Wall Street.

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Jim,

You were the first to tell your readers this banking crisis started long before any one heard of Covid-19. Now many are seeing what you saw early on.

Dave

Another Gigantic US Bank Bailout Under Cover Of A Virus
May 18, 2020

When the Dodd Frank Act was passed in 2010, President Obama triumphantly declared, “No more bailouts!” But what the Act actually said was that the next time the banks failed, they would be subject to “bail ins” – the funds of their creditors, including their large depositors, would be tapped to cover their bad loans.

Then bail-ins were tried in Europe. The results were disastrous.

Many economists in the US and Europe argued that the next time the banks failed, they should be nationalized – taken over by the government as public utilities. But that opportunity was lost when, in September 2019 and again in March 2020, Wall Street banks were quietly bailed out from a liquidity crisis in the repo market that could otherwise have bankrupted them. There was no bail-in of private funds, no heated congressional debate, and no public vote. It was all done unilaterally by unelected bureaucrats at the Federal Reserve.

“The justification of private profit,” said President Franklin Roosevelt in a 1938 address, “is private risk.” Banking has now been made virtually risk-free, backed by the full faith and credit of the United States and its people. The American people are therefore entitled to share in the benefits and the profits. Banking needs to be made a public utility.

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Jim,

You have pointed this out many times now.

Dave

Evidence Suggests U.S. Financial Crisis Started On August 14, 2019
May 14, 2020

In the Federal Reserve’s most recent “Supervision and Regulation Report” on the big bank holding companies it “supervises,” the Fed continued its attempts to perpetuate the narrative that “The banking industry came into 2020 in a healthy financial position” and has simply unraveled as a result of the COVID-19 pandemic. That narrative is built on the same flimsy house of cards that the New York Times and Andrew Ross-Sorkin built the narrative that the mega banks on Wall Street were not responsible for the 2008 financial collapse.

The Fed is desperate to promote this narrative to stop a new Congress next year from holding hearings on why the Fed, for the second time in 12 years, had to engage in trillions of dollars in Wall Street bank bailouts after reassuring Congress for years that the financial system was fine as the Fed loosened or rolled back reforms like the Volcker Rule. The Fed needs this narrative to prevail in order to cover up its own negligent supervision of the behemoth banks.

Depending on the composition of Congress next year, those hearings might bring about not only a restoration of the Glass-Steagall Act (which bans trading houses on Wall Street from combining with federally-insured, deposit-taking banks) but might also put an end to the Fed’s ability to negligently supervise the big banks with one hand, while bailing them out with the other hand, using money it creates out of thin air. (The Fed will report its latest balance sheet tally today at 4:30. It is expected to be close to $7 trillion from the $6.7 trillion it reported last week – which is $2.8 trillion more than it was exactly one year ago. The growth in the Fed’s balance sheet has come as a result of efforts to prop up Wall Street banks.)

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Jim/Bill,

I thought the readers might like this article.

Dave

Meet the Fed’s Global Plunge Protection Team
May 10, 2020

The Dow Jones Industrial Average rallied 455 points by the closing bell on Friday. It seemed sadistic to average folks. One hour before the stock market opened, the Bureau of Labor Statistics had reported the worst U.S. unemployment figure since the Great Depression (14.7 percent) along with the staggering loss of 20.5 million jobs in just the month of April. Within the first half hour of trading, the Dow was up more than 300 points. It then added to those gains in afternoon trading.

None of the explanations offered by mainstream media to explain the incongruous stock trading were accurate. It was not because the stock market had anticipated worse or that the market was rallying because it thought the worst of the economic fallout was behind us. It was because the one emergency funding facility that the Federal Reserve has quietly ramped up more than any other, its Foreign Central Bank Liquidity Swap Lines, was working its magic on Friday.

To understand what happened on Friday, you need to understand what Fed Chair Jerome Powell was methodically setting in place in February.

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Posted by & filed under Jim's Mailbox.

Jim,

You have been clear that the problem started in September.

Dave

Congress Sets Up Taxpayers to Eat $454 Billion of Wall Street’s Losses. Where Is the Outrage?
May 7, 2020

Beginning on March 24 of this year, Larry Kudlow, the White House Economic Advisor, began to roll out the most deviously designed bailout of Wall Street in the history of America. After the Federal Reserve’s secret $29 trillion bailout of Wall Street from 2007 to 2010, and the exposure of that by a government audit and in-depth report by the Levy Economics Institute in 2011, Kudlow was going to have to come up with a brilliant strategy to sell another multi-trillion-dollar Wall Street bailout to the American people.

The scheme was brilliant (in an evil genius sort of way) and audacious in employing an Orwellian form of reverse-speak. The plan to bail out Wall Street would be sold to the American people as a rescue of “Main Street.” It was critical, however, that all of the officials speaking to the media repeat the words “Main Street” over and over.

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Jim/Bill,

You have said this so many times but the public will never be told the truth by our leaders.

Dave

Wall Street’s Financial Crisis Preceded COVID-19: Chart And Timeline
May 1, 2020

If a reputable polling outfit were to ask Americans what caused the current financial crisis on Wall Street, they would say the coronavirus COVID-19 pandemic. If Americans were asked in the same poll when the financial crisis on Wall Street started, they would tie it to outbreaks of the virus in the U.S. this year.

But as the timeline below and the chart above clearly substantiate, the financial crisis on Wall Street began in earnest on September 17, 2019, almost four months before the first death from coronavirus anywhere in the world was reported in China on January 11, 2020 and five months before the first death in the U.S. was reported on February 29, 2020, having occurred one day earlier on February 28. (See the New York Times coronavirus timetable here.)

This big disconnect between what people believe about the current Wall Street crisis and the easily documented facts show just how effective Wall Street’s spin doctors and protection racket have become at promulgating a false narrative through mainstream media outlets. (To help get the truth out to the American people, Wall Street On Parade has chronicled each milestone in the crisis in an investigative series that now includes more than seven dozen articles.)

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