Posts Categorized: Jim’s Mailbox

Posted by & filed under Jim's Mailbox.

Very interesting and insightful connection of dots by CIGA Kevin.  We believed the new SGE contracts were an attempt by China to “wag the dog” (COMEX).  As you will see below, Kevin connects these new “pledged” CME contracts to GLD (HSBC) as a way to possibly weasel the last real physical gold left.  We discussed this on yesterday’s recorded call for subscribers.

Bill

Did The Comex Just Create More ‘Paper Gold’ For Price Suppression?
November 15, 2019

A mysterious “pledged gold” entry has just showed up on the Comex gold warehouse report. The definition of this new warehouse stock classification for gold is provided in Chapter 7 of the New York Mercantile Exchange rulebook.

In brief, “eligible” gold is a gold bar stored in a Comex vault that meets Comex specifications (quality, size, purity, and brand).

A “registered” gold bar is one that has been designated for delivery and for which a warrant has been issued. This warrant is evidence of and specifies ownership title to the bar. Warrants facilitate the transfer of delivery under a Comex contract.

“Pledged gold” is a bar for which a warrant has been issued but for which the warrant has been placed on deposit at the CME Clearing House as part of a required performance bond.

The Chicago Mercantile Exchange (CME) has its own clearing division through which all trades are confirmed, matched (counterparties being verified), and settled (money changes hands). Each contract has a long and short counterparty.

A clearing member of the exchange is typically a bank, hedge fund, or commercial entity that has been admitted as a clearing member. The clearing mechanism is the “lubricant” that enables any securities exchange to function.

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Jim/Bill,

Even if the public is not in the stock market, they will still get screwed.

The Central Banks will use the public’s money to buy stocks should the markets tank.

So, even if you stay away from the toppy stock market, you will still take a loss.  The Central Banks will use your money to bail everyone out.

“the ECB will buy stocks next to somehow stimulate the European economy, when in reality all it will do is stimulate the bank accounts of those Europeans lucky enough to own stocks.”

And when it comes time to bail, wealthy stockholders will be selling their holdings to the Central Banks.  As in any market crash, there will be few bids in an open and free marketplace.  How sweet to have a Central Bank there to unload to.

But never forget, you can’t take risk out of the markets.  You can only transfer it.

And in this case, it will be transferred onto the public’s shoulders.

CIGA Wolfgang Rech

Wolfgang,

What the average person does not understand is this, once central bank balance sheets are filled with equities it will mean that equities back the very same currency used to purchase the equities…turtles all the way down with the bottom turtle standing on thin air!

Best,

Bill

ECB Member Hints Central Bank Will Buy Stocks When Situation Gets “Really Bad”
November 18, 2019

Following last month’s IMF summit where central bankers from around the world conceded the negative rates no longer stimulate the global economy, the ECB’s new head, convicted criminal Christine Lagarde has found herself in a quandary: besides demanding a fiscal stimulus boost from Germany, one which is unlikely to come for at least another 6 months now that Berlin narrowly avoided a technical recession, what else can she demand to stimulate Europe’s moribund growth at a time when Europe’s key offshore growth dynamo, China, is not only set to grow at the slowest pace on record but is furiously exporting deflation?

The answer came on Saturday courtesy of ECB policy maker Madis Muller, the governor of the Bank of Estonia, who essentially hinted that the ECB could very well buy stocks during the next recession, saying that the central bank could broadened its asset-purchase program, if the economic situation in the euro area deteriorates significantly.

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Jim/Bill,

When the President started the trade wars we warned listeners that past history showed they were not good for the country. Here are some facts.

Dave

Here Are The States Where Trump Trade War Is Hammering China Exports
November 16, 2019

New data from the US Commerce Department shows at least 30 states, many of them Trump states, have observed double-digit declines in merchandise exports to China through Sept. of this year.

In Wyoming, which exports chemical products to China, recorded a -80% plunge in shipments in the first nine months. Alabama’s automobile industry reported a -49% fall in shipments, Idoha -46%, Washington -45%, Aaraknsa -44%, Florida -40%, and Texas -39%. Merchandise exports to China as a whole slumped 15% to $78.8 billion during the period.

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Jim/Bill,

China, on the other hand, is already Brazil’s largest trading partner, with commerce reaching $100 billion annually.

Dave

Brazil Deepens China Ties in About-Face
November 14, 2019

BRASÍLIA—As a fiery conservative candidate last year, President Jair Bolsonaro warned that China was a rapacious predator out to exploit Brazil and he pledged loyalty to a leader he called his American idol, Donald Trump.

Less than a year into his presidency and unable to revive a flat economy, an ebullient Mr. Bolsonaro hosted China’s President Xi Jinping in this capital for a two-day summit of the world’s leading emerging nations that ended Thursday.

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Jim/Bill,

Both parties have fed the military industrial complex. Think of the infrastructure this could have built in the USA!?

Dave

The Costs of Post 9/11 Wars: $6.4 Trillion
November 14, 2019

Since late 2001, the United States has appropriated and is obligated to spend an estimated $6.4 Trillion through Fiscal Year 2020 in budgetary costs related to and caused by the post-9/11 wars—an estimated $5.4 Trillion in appropriations in current dollars and an additional minimum of $1 Trillion for US obligations to care for the veterans of these wars through the next several decades.[2]

The mission of the post-9/11 wars, as originally defined, was to defend the United States against future terrorist threats from al Qaeda and affiliated organizations. Since 2001, the wars have expanded from the fighting in Afghanistan, to wars and smaller operations elsewhere, in more than 80 countries — becoming a truly “global war on terror.” Further, the Department of Homeland Security was created in part to coordinate the defense of the homeland against terrorist attacks.

These wars, and the domestic counterterror mobilization, have entailed significant expenses, paid for by deficit spending. Thus, even if the United States withdraws completely from the major war zones by the end of FY2020 and halts its other Global War on Terror operations, in the Philippines and Africa for example, the total budgetary burden of the post- 9/11 wars will continue to rise as the US pays the on -going costs of veterans’ care and for interest on borrowing to pay for the wars. Moreover, the increases in the Pentagon base budget associated with the wars are likely to remain, inflating the military budget over the long run.

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Jim/Bill,

Where is Kudlow with its pompous nonsense?

CIGA GG

Recession Warning: Freight Volumes Negative YoY For 11th Straight Month
November 15, 2019

Authored by Mike Shedlock via MishTalk,

The Cass Freight Index once again warns again of economic contraction.

Donald Broughton, founder of Broughton Capital and author the Cass Freight Index says the index signals contraction, possibly by the end of the year.

That’s just one one month away.

Six Key Points

With the –5.9% decline in October, following the string of declines in May through September (ranging from -3.0% to -6.0%), we repeat our message from the previous five months: the shipments index has gone from “warning of a potential slowdown” to “signaling an economic contraction.”

We acknowledge that: all of these negative percentages were against tough comparisons (some extremely tough), and the Cass Shipments Index has gone negative before without being followed by a negative GDP. However, demand is weaker across almost all modes of transportation, both domestically and internationally.

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Posted by & filed under Jim's Mailbox.

There is something very big being covered up here.

JB

Understand? Transparency versus opacity They want you to believe nothing to see here. We have told you many times to “watch credit, THIS is credit on steroids!

Bill

The Fed Has Created The Big Lie For Congress On Its Repo Loans While The New York Fed Blocks Freedom Of Information Requests
November 14, 2019

Yesterday Federal Reserve Chairman Jerome Powell testified before the Joint Economic Committee of Congress. Only one Congressman, Kenny Marchant (R-TX), had the courage to ask Powell about the Fed’s intervention in the repo loan market beginning on September 17. Since that time the Fed has been pumping hundreds of billions of dollars each week (that the New York Fed creates electronically out of thin air) into its 24 primary dealers on Wall Street. These primary dealers are not commercial banks that might be inclined to use the funds to make loans to local businesses or to consumers to buy a house and help their local economies. No, 23 of the 24 primary dealers are stock brokerage firms and investment banks that engage in leveraged bets in the stock, bond, commodities, and derivatives markets. The 24th is a foreign bank. (See primary dealer list below.)

There is nothing in the legislation that created the Fed, the Federal Reserve Act, that allows it to be the lender-of-last-resort to the trading houses on Wall Street. The Fed’s Discount Window, which is legally allowed to make emergency or seasonal loans, is restricted by law to just deposit-taking banks – not Wall Street trading houses.

And yet, bailing out Wall Street is exactly what the Fed has been doing since September 17 of this year and what it did secretly to the tune of $29 trillion during the financial crisis from December 2007 to the middle of 2010. The Fed does have some leeway in an emergency situation but that has to be brief and defined. The Fed has announced that it’s planning to keep its current money spigot to Wall Street flowing into at least January of next year. But according to Powell’s testimony to Congress yesterday, there’s no pressing crisis on Wall Street. Powell stated that “The core of the financial sector appears resilient, with leverage low and funding risk limited relative to the levels of recent decades.”

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Jim/Bill,

Every Saturday, I stress the banks own both parties!

Dave

Jamie Dimon Tells 60 Minutes He’s A Patriot; There’s Good Reason To Think He’s A Crime Boss
November 10, 2019

Jamie Dimon was interviewed by Lesley Stahl this evening on the CBS investigative news program, 60 Minutes. The gist of Dimon’s argument is that candidates for President, such as Senator Elizabeth Warren, should stop vilifying him simply because he’s “successful.” Dimon also wants the public to know that it’s “dead wrong” to think he’s not a “patriot.”

. . .

Chapter Five of the book is titled: “The Case for Prosecuting Officers of JPMorgan Chase Under RICO.” The trial lawyers write:

“This country cannot move forward with integrity until it faces the fact that bankers have criminalized the financial services industry. We, the people, have to demand an honest government that enforces the law, even against super rich criminals. As Robert Kennedy said, ‘Every society gets the kind of criminal it deserves. What is equally true is that every community gets the kind of law enforcement it insists on…If Jamie Dimon is running a criminal institution, he should be prosecuted for it. And law enforcement has the perfect tool for such a prosecution: the Racketeer Influenced and Corrupt Organizations Act (‘RICO’).”

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Jim/Bill,

Every step forward for China is a step back for the USA.

Dave

Greece, China Sign 16 Belt And Road Deals To Open New Superhighway
November 12, 2019

Chinese President Xi Jinping is on an official visit in Athens Monday has signed 16 agreements in sectors including agriculture, energy, ports, and tourism aimed at increasing Belt and Road Initiative (BRI) projects in the European Union, reported Bloomberg.

President Xi met with political leaders in Athens Monday, after the Prime Minister of Greece Kyriakos Mitsotakis visited China last week.

Beijing is planning on significantly boosting Chinese investment in Greece, which could lay the groundwork for a new superhighway of trade between Europe and China.

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Jim/Bill,

As long as the market goes up every day Americans will look the other way.

Dave

Events In Bolivia Follow Script Of ‘Color Revolution’ – The Antithesis Of Democracy
November 12, 2019

 From the claim of a ‘stolen’ election to the opposition burning ballots and the forced resignation of President Evo Morales, the events in Bolivia have followed the script of the original “color revolution” in Serbia.

A politician critical of Washington seeks re-election, and wins the vote in the first round under the existing rules. Opposition parties cry foul and demand a runoff, only to attack the polling stations and burn the ballots, making an accurate count impossible. Then their demands escalate: the “dictator” must resign without a new vote, the “people power” in the streets demands it.

Yes, this is Bolivia in early November 2019. But I remember it also being Serbia, in early October 2000 – back when it was still known as Yugoslavia. One or two similarities would be a coincidence; this kind of eerie overlap points to something more. Especially when what happened in Serbia would later be identified as the very first case of “color revolution.”

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Jim/Bill,

If you listened to the presidents speech yesterday, he said every thing was the best ever. I am confused. What should we believe?

Dave

Trump Talks Trade, Praises Negative Rates At Economic Club Of New York
November 12, 2019

Update 2: During President Trump’s speech on Tuesday, he laid out his economic message for the 2020 campaign: Under his administration, the US has experienced more than five years of uninterrupted growth, and record-low unemployment.

Trump said he reversed policies imposed by his predecessors that restrained the economy, blaming regulations and trade deals advanced by other presidents. He added that the “political class sold out American workers.”

The president reiterated his criticism of the Fed, which he has repeatedly bashed for not cutting interest rates sooner. Yet, this time he actually called for the central bank to consider cutting rates into negative territory like they have in Europe. When Trump’s praise of negative interest rates only evoked a brief burst of applause, Trump remarked that “only the smart people are clapping.”

Turning his attention to trade, markets were caught between Trump’s more optimistic pronouncements and his more threatening statements. He accused China and India of taking advantage of the US, while promising the audience that a trade deal with China is well within the US’s grasp.

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Jim/Bill,

I say it every Saturday; nothing changes no matter what party is in office.

Dave

MSM Adamantly Avoids the Word ‘Coup’ in Bolivia Coverage
November 12, 2019

There has been a military coup in Bolivia backed by violent right-wing  rioters and the U.S. government, but you’d hardly know this from any of the mainstream media headlines.

“Bolivian President Evo Morales steps down following accusations of election fraud” proclaims CNN.

“Bolivia’s Morales resigns amid scathing election report, rising protests” reports The Washington Post.

“Bolivian Leader Evo Morales Steps Down” says The New York Times.

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Jim/Bill,

The MSM, fake news, will not tell the people the truth. Here is what Mr. Roberts thinks.

Dave

Trump Has Presided Over A Major Crime Against Humanity
November 12, 2019

Information Clearing House” –  Not long ago I read that a US Assistant Secretary of State, or perhaps it was a member of the National Security Council, said that now that Washington had reestablished control over Ecuador, it would not be long before the governments of Bolivia, Venezuela, and Cuba would be overthrown.

Venezuela is proving to be hard for Washington to crack. Washington was banking on its NGO forces paid to stage protests, together with monetary bribes to the Venezuelan military, to chase Maduro out of office. But so far the Venezuelan military has refused to desert their country for Washington. Washington can, of course, raise the offer to the generals. Perhaps the generals are awaiting larger bribes.

However, the Bolivian military took the money and on the basis of protests organized by US-financed NGOs and the National Endowment for Overthrowing Democracy forced Evo Morales out of office. This is a huge loss for Bolivia.

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Bill/Jim,

What will happen when all this printing stops?

JB

Is The ‘Mother Of All Bubbles’ About To Pop?
November 11, 2019

When the New York Federal Reserve began pumping billions of dollars a day into the repurchasing (repo) markets (the market banks use to make short-term loans to each other) in September, they said this would only be necessary for a few weeks. Yet, last Wednesday, almost two months after the Fed’s initial intervention, the New York Federal Reserve pumped 62.5 billion dollars into the repo market.

The New York Fed continues these emergency interventions to ensure “cash shortages” among banks don’t ever again cause interest rates for overnight loans to rise to over 10 percent, well above the Fed’s target rate.

The Federal Reserve’s bailout operations have increased its balance sheet by over 200 billion dollars since September. Investment advisor Michael Pento describes the Fed’s recent actions as Quantitative Easing (QE) “on steroids.”

One cause of the repo market’s sudden cash shortage was the large amount of debt instruments issued by the Treasury Department in late summer and early fall. Banks used resources they would normally devote to private sector lending and overnight loans to purchase these Treasury securities. This scenario will likely keep recurring as the Treasury Department will have to continue issuing new debt instruments to finance continuing increases in in government spending.

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Bill,

As you wrote last week for subscribers if an event takes place and MSM gives it little to no coverage is there any reaction from the markets or the public?

Dave

Over 100 Missiles Against Syria: US, UK And France Committed An International War Crime Against Syria On 14 April 2018
November 6, 2019

It is now clear that on 14 April 2018, the three Governments of U.S., UK, and France, fired over a hundred missiles against Syria, on no more ‘justification’ than staged videos that had been done by those regimes’ own proxy boots-on-the-ground fighters in Syria, who are trying to overthrow Syria’s existing, non-sectarian Government and replace it by a Sharia-law regime that would be selected by agents of Saudi Arabia’s ruling family.

In other words: the fighters whom the U.S., UK, and France, had been arming and training, had themselves created this pretext of a faked ‘gas attack’ having been perpetrated against civilians, as an excuse in order for those three national regimes (which Governments are those jihadists’ own foreign supporters and backers — the real  international “Deep State” imposing the empire of which they themselves are already a part as the empire’s proxy boots-on-the-ground army) to, additionally and now directly, invade Syria, by means of over a hundred missiles against Syria, on that date: 14 April 2018.

. . .

Perhaps most of what Americans think is true is false, and most of what Americans think is false is true, but certainly Americans are an enormously deceived and misinformed people. This nation’s military-industrial-press complex or Government (i.e., America’s billionaires, who control all of that) have seen to it, and nobody will tell the American public. (This news-report has been offered to virtually all of them for publication.) How can a nation be a democracy if the public never learn the truth about the Government that rules them?

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Bill,

This is Conrad, who who single sails trans-world races. He recently lost his entire mainsail in the fray. He singlehandedly sailed the to the finish many hundreds of miles away.

He jerry-rigged the ship in the fierce ocean.

He has a good sense of humor re: his training now for the Southern Ocean race.

Jim

 

Jim/Bill,

This is why I said to Denny on Saturday, China is holding a strong hand.

Dave

How Russia and China Are Building Eurasia Into a Geopolitical Powerhouse
November 8, 2019

Together, Russia and China have outstripped America economically and militarily within Eurasia and are in the process of drawing the European Union into a vast, increasingly prosperous alliance as America pursues an increasingly dystopian future. Their leaders ares so dominant, their vision is so seductive, their alliance so strong, their weapons so advanced and their pockets so deep that their centripetal force is almost irresistible. Russia’s leadership–Putin, Lavrov, Nabiullina, Siluanov and Shoygu–is the best in the country’s history and, as President Trump observed, “China’s leaders are much smarter than our leaders. It’s like taking the New England Patriots and Tom Brady and having them play your high school football team.” President Xi has visited Moscow more than any other capital city and has met Vladimir Putin thirty times, calling him, “My best, most intimate friend.”

* * *

Colonial nations lost their political and economic freedom because imperial centers of capital needed to control resources crucial for their survival, wealth, and power[2]. This is the real meaning of the terms ‘national security’ and ‘national interest.’ Powerful nations’ ‘national security’ is the control of an economic empire of subject states and the strategies through which this is carried out are their ‘national security secrets.’ They practice the antithesis of what they preach: their trumpeting of peace, freedom, justice, rights, democracy, and majority rule disguises those strategies for controlling other people and their resources be kept secret. The most pernicious is that multi-party democracy and a free press and must precede successful development.

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Jim/Bill,

On Saturday, Denny asked, “could the US Government seize private citizens gold?” I responded, “they can do what ever they want as there appears to be no rule of law”.

Dave

Pentagon: We’ll Shoot Any Syrian Official Who Tries to Access Syrian Oil
November 10, 2019

Authored by Andrea Germanos via CommonDreams.org,

Pentagon officials asserted Thursday U.S. military authority over Syrian oil fields because U.S. forces are acting under the goal of “protecting Americans from terrorist activity” and would be within their rights to shoot a representative of the Syrian government who attempted to retake control over that country’s national resource.

The comments came from Pentagon spokesperson Jonathan Hoffman and Navy Rear Admiral William D. Byrne Jr. during a press briefing in which the two men were asked repeatedly about the legal basis the U.S. is claiming to control Syrian oil fields.

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