Posts Categorized: Jim’s Mailbox

Posted by & filed under Jim's Mailbox.

It is a big question mark to me why people like Obama — He is a wolf in sheep’s clothing!

CIGA GG

How Team Obama Tried To Hack The Election
May 26, 2017

New revelations have surfaced that the Obama administration abused intelligence during the election by launching a massive domestic-spy campaign that included snooping on Trump officials.

The irony is mind-boggling: Targeting political opposition is long a technique of police states like Russia, which Team Obama has loudly condemned for allegedly using its own intelligence agencies to hack into our election.

The revelations, as well as testimony this week from former Obama intel officials, show the extent to which the Obama administration politicized and weaponized intelligence against Americans.

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What Is the US Dollar Saying About the Fed? — I think the dollar is finished! How much longer can you keep on diluting and manipulating the currency till it gives way and it will determine its own fate?

See how important the 92-93 level on the USD index is, see the point and figure chart.

CIGA GG

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What Is the US Dollar Saying About the Fed?
May 26, 2017

Earlier in the week, I argued that the dollar was set to decline, with the Powershares Dollar Index ETF (UUP) heading towards $24.75 – $24.50.

But with the Fed Minutes out of the way, let’s take a fresh look at where the dollar can go.

Most traders considered the Fed’s message to be dovish overall, but let’s ignore the ‘expert’ opinions and get to the heart of the matter: price action

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Jeff Cooper: Is Gold About to Explode?
May 26, 2017

“Prices are governed by Time

Time causes Prices to change.

Time angels are resistant to Price.”

-W.D. Gann

Yesterday’s report shows gold’s big picture ending down-wedge.

As indicated, a breakout over the declining trendline could trigger an explosive advance.

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Posted by & filed under Jim's Mailbox.

Dear Wolfgang,

Bitcoin and all it new brothers and sisters are Tulips and OTC South Sea companies. Do not knock. If you are a trader, there are trades to be made. That is until the musical chairs stop.

Jim

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Jim/Bill,

What is Bitcoin?

I’ve always believed it was an alternative currency.

It can be used to transact business, but is certainly not a storehouse of value or stability. It’s too volatile and has nothing backing it.

Slowly but surely, I’ve seen companies reversing (and yes, many are adopting) their position on accepting bitcoin as the volatility has become too extreme. Imagine accepting $150,000 in bitcoin payment for a Mercedes, only to find a short while later, it’s value dropped to $100,000.

Stability is its inherent flaw.

Which brings me to another point…..what is bitcoin referenced to?

Currencies are always referenced to each other. If money flows into one (increasing its value), it flows out of others (decreasing their value). Essentially, the Dollar’s value is based on its relationship to other currencies.

Commodities (hard, soft, and often real estate) are referenced to the Dollar, primarily because the Dollar is used to transact those commodities. If the Dollar drops in value, commodities rise in value, and vice versa.

Yet bitcoin has none of those relationships.

This leads me to believe it’s not a currency….it is not governed by fluctuations in global currencies in relation to each other. There is no referential connection.

It also leads me to believe it’s not a commodity….it’s price is not governed in any way by fluctuations in global currencies. Again, there is no direct relationship.

So, what it bitcoin?

Is it purely an ephemeral and totally virtual, object of speculation?

Is it simply an IOU, which certainly its M.O.?

Someone please enlighten me.

CIGA Wolfgang Rech

Posted by & filed under Jim's Mailbox.

Jim/Bill,

From what I know of child psychology, you can never tell a child not to do anything.

If a small child finds a gun in your home and points it at you, never, but NEVER, say “don’t shoot”! They will look at that remark as a playful challenge and will shoot.

Better off to say “I’ll bet you can’t shoot that lamp over there.”

Or, how many mothers have told their children not to touch a hot stove, yet the child still does. Sometimes, the only way a child learns is to disobey and suffer the consequences. Painful as it is for us parents, and hopefully not something too harmful for the child.

We all have see the recent articles claiming fund managers are totally confused by the soaring stock market and staying away.

Legendary Investor Asher Edelman Says “I Have No Doubt” PPT Behind Market Rally
May 24, 2017

Legendary vulture investor Asher Edelman, the 1980s model for Gordon Gekko, strayed into what must’ve been uncomfortable territory for CNBC during an appearance on “Smart Money” when he discussed his view that the government’s “plunge protection team” is the only thing propping up the current market rally, and said he suspects that it has again been recently een intervening in the market to keep stocks at record highs.

Few can explain the market’s recent resilience, holding near record highs despite weak economic data and intensifying geopolitical tensions. The main benchmarks have risen for the fourth straight day following last week’s “Trump Dump” despite a terror attack in the U.K., the worst soft economic data since February 2016, and surprisingly low trading volume.

The “plunge protection team” was created by President Ronald Reagan one year after the stock market crash in 1987, when the president called for the creation of the “Working Group on Financial Markets.”

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Now Bitcoin is soaring to unbelievable heights.

Bitcoin Explodes Above $2400 After China Downgrade, Scaling Agreement Reached
May 24, 2017

Following comments from DoubleLine’s Jeff Gundlach tieing the surge in virtual currencies to the demise of China (right before that nation is downgraded), Bitcoin surged overnight, breaking above $2400 for the first time. It is now up over 150% year-to-date.

Bitcoin is up fopr the 26th day in the last 29 sessions, doubling in price in that period…

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All I can say, children, is go for it. Go ahead, put your life savings in equities at this point in time…or better yet….into Bitcoin. They’ll never go down.

Don’t listen to the “parental” naysayers; the “smart money”. What do they know?

CIGA Wolfgang Rech

Posted by & filed under Jim's Mailbox.

Jim/Bill,

Most people assume a “cashless society” implies simply alternative forms of monetary instruments.

It’s more than that. Much More!

The public is running out of cash. So to keep the false prosperity going a bit longer, “spending what you don’t have, vis-a vis plastic, is being encouraged.

No, let me rephrase that…..it’s being demanded!

Remember Popeye’s friend, Wimpy?

“I will gladly pay you Tuesday, for a hamburger today.”

My childhood TV memory.

Of course that phrase was only used back in the early 50’s because plastic wasn’t prevalent then. In fact, “Layaways” were the only option.

The sign below states “Cash Not Accepted”.

Make no mistake, cash IS accepted…..but who has any left?

CIGA Wolfgang Rech

Sweden Inches Closer To Cashless Society As Churches And Homeless Now Accept Plastic
May 18, 2017

The citizens of Sweden are perhaps closer to completely giving up a component of their individual sovereignty than any other country on earth. In a world where government’s abuse of power and intrusion into the personal lives of its blissfully ignorant enablers grows more disturbing by the day, at least for now, cash offers the one opportunity to transact in a truly anonymous way.

That said, Swedes are ditching their physical currency at a breakneck pace with notes and coins in circulation dropping consistently for the past 6 years and down over 15% in 2016 alone.

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According to the following chart from Bloomberg, notes and coins in public circulation dropped to an average of 56.8 billion kronor, just $6.4 billion, in the first quarter of this year, the lowest level since 1990 and more than 40% below its 2007 peak with the pace of the decline accelerating to its fastest ever in 2016.

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Jim/Bill,

I don’t pretend to know everything going on in the world, but certainly many headlines are flashing alerts:

Europe:

-Potential breakup of the EU

-Rioting in Greece,

-Banking crisis in Italy,

-Political turmoil in France,

-Anti Islamic movement in Germany,

-Debt problems with Sweden’s high tax socialism,

-Switzerland about to be on the hook for ALL of Apple stock (thought I’d jsut throw that in there).

South America:

-We have Venezuela oil production collapse throwing the country into the abyss,

-Brazil bloodbath in currencies, bonds, and futures,

-Anti government protests in Paraguay,

-Ecuador’s opposition presidential candidate attacked,

-Argentina’s continual currency devaluation and inflationary spiral

China:

-Major “shadow” banking crisis in recent days,

-Chinese insurers warn of mass defaults and social unrest unless new products can be issued.

America:

-Political upheaval in overthrowing Trump,

-Massive political polarization throughout the country,

-Illegal immigration onslaught,

-Rampant corruption and malfeasance throughout the financial and industrial industries

Now throw all wars and potential conflicts into the mix…….

-N. Korea

-Afghanistan

-Syria

-Palestine

-Iraq

Etc, Etc. Etc,

And the worldwide hacking of ALL computer systems into the mix…….

….where is all the money going to flow for a safety?

Not just the 1 percenters, but all social classes?

CIGA Wolfgang Rech

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Jim/Bill,

This little tidbit of news has been out for the past weeks but flying below the radar.

A nice start.

“Will this new contract help moderate the blatant price manipulation in the gold market by the western banking cartel? Maybe not on a stand-alone basis. But several developments occurring in the eastern hemisphere and among the emerging bloc of eastern super-powers – as discussed in today’s episode of the Shadow of Truth – will begin to close the window on the ability of the west’s efforts to prevent the price of gold from transmitting the truth about the decline of the U.S. dollar’s reserve status and the rising geopolitical instability:”

Can you say “Arbitrage”?

CIGA Wolfgang Rech

Is China Intentionally Making It Harder To Manipulate Gold?
May 22, 2017

A new gold futures contract is being introduced by the Hong Kong Futures Exchange (two contracts actually). The two contracts will be physically settled $US and CNH (offshore renminbi) gold futures contracts. The key to this contract is that it requires physical settlement of the underlying gold, which is a 1 kilo gold bar.

The difference between this contract and the Comex gold futures contract is that the Comex contract allows cash (dollar aka fiat currency) settlement. The Comex does not require physical settlement. In fact, there are provisions in the Comex contract that enables the short-side of the trade to settle in cash or GLD shares even if the long-side demands physical gold as settlement.

With the new HKEX contract, any entity that is long or short a contract on the day before the last trading day has to unwind their position if they have not demonstrated physical settlement capability.

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Posted by & filed under Jim's Mailbox.

Courtesy of CIGA GG

Jim

Italian Supervolcano Is Reaching “Critical Stage” According to Scientists – 360,000 People Could Be Affected
May 22, 2017

The supervolcano is only a few miles away from Naples, a city that is home to over 1 million people.

From Mac Slavo:

Italy has long been a notorious hot spot for seismic activity. That nation’s history is littered with destructive earthquakes and volcanic eruptions that have killed thousands of people. In fact, just last year a 6.2 earthquake managed to kill 120 people in central Italy.

However, those previous incidents could pale in comparison to the destructive capacity of Campi Flegrei; a massive supervolcano that lies just outside of Naples. Researchers in Italy are currently trying to determine if recent activity around the site could be warning us of an impending disaster.

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Posted by & filed under Jim's Mailbox.

From our friend Robert and written by Lisa Frank. Agree with this or disagree. The history is correct and factual, We believe the “theory” is not only plausible but probably dead on. We probably do not need to wait more than a few months to find out one way or the other, indictments will be proof. Pray for the white hats!

Bill and Jim

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You will not read about this in the mainstream media … more things are in the works.

Cheers, Robert

Trump Dropping the Hammer on Comey
May 20, 2017

There are very few crime/mystery novels that approach this true story for compelling drama, intrigue and brinkmanship (with the nation in the balance).

Don’t believe the fake-media story that Trump made a mistake or huge gaffe by firing Comey.

Don’t believe the media narrative from the left that it was an attempt to silence Comey from some investigation into Trump.

Don’t believe the RINO narrative that Comey is a good guy just trying to do his job in terrible circumstances and the timing was bad.

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Posted by & filed under Jim's Mailbox.

From our very astute friend Robert.

Bill

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Jim/Bill,

You gotta love the Italians. Do not underestimate their resolve to get to the bottom of this, They maybe screwed up with local unresolvable problems but they love to go after external parties.

Years ago, I exposed a cross country tax fraud scheme by providing notarized documentary evidence which resulted in the Italians going after a household corporate name in Holland by having their Dutch head offices raided by Interpol. My employees were taken back at the Italian gratitude when they received police escorts to the tarmac bypassing the usual customs and passport lineups at check in.

Deutsche should be worried as the Italians will extract a pound of flesh. And as a result confidence will continue to erode, in all things German.

Cheers

Robert

Deutsche Bank Sued For Running An “International Criminal Organization” In Italian Court
May 18, 2017

Having been accused, and found guilty, of rigging and manipulating virtually every possible asset class, perhaps it was inevitable that Deutsche Bank, currently on trial in Milan for helping Banca Monte dei Paschi conceal losses (as first reported last October in “Deutsche Bank Charged By Italy For Market Manipulation, Creating False Accounts”) is now facing accusations that it was actually running an international criminal organization at the time.

In the closely watched lawsuit, prosecutors used internal Deutsche Bank documents and emails to persuade a three-judge panel to rule that there were additional, aggravating circumstances to the charges the German lender already faces related to various derivatives transactions. As Bloomberg reported overnight, the material included a London trader’s “well done!” message to a banker who is now on trial.

The reason why prosecutors are seeking expanded charges against the German banking giants is that by allowing prosecutors to argue that the bank’s market manipulation crimes were committed by an organization operating in several countries would lead to higher penalties if they win a conviction.

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“Your understanding” is correct Wolfgang.

Bill

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Jim/Bill,

For those who may still be skeptical.

“Plunge Protection Team” was the nickname given to the Working Group by The Washington Post in 1997. The team was initially perceived by some to have been created solely to shore up the markets or even manipulate them. The team was created in response to the 1987 market crash.

The Working Group on Financial Markets was created by Executive Order 12631, signed on March 18, 1988, by United States President Ronald Reagan.

They are located at 33 Maiden Lane in Downtown NYC.

The PPT Modus Operandi when the markets begin to tank (my understanding):

1) Sell Gold

2) Sell Silver

3) Buy USD/JPY Yen

4) Buy Crude

5) Sell 10 year Notes

6) Buy S&P Futures contracts

Other than that, the Fed is hands off.

CIGA Wolfgang Rech

New York Fed Buys Building Housing Plunge Protection Team
February 28, 2012

Since nobody else has any interest in downtown NY real estate, Goldman’s Bill Dudley, currently incidentally in charge of the New York Fed, has decided to step up. “The Federal Reserve Bank of New York (New York Fed) today announced that it has acquired the building at 33 Maiden Lane for $207.5 million from Merit US Real Estate Fund III, L.P. and established a new, wholly owned limited liability company called Maiden & Nassau LLC to serve as owner of the building. The acquisition provides a cost-effective, long-term alternative to the current practice of leasing space in this and other buildings and allows for greater control over maintenance, operation and security of the building.” As a reminder, the 9th floor of 33 Liberty is where the ever elusive, but always present Plunge Protection Team, pardon the “markets group” at the Federal Reserve is housed (more here). And although in recent days it is no secret that the bulk of Fed open market stock order are routed via that one certain HFT powerhouse out of Chicago, it is always a good idea to keep all the market manipulating facilities under one roof. And so, the Fed now will have full domain over everything that transpires under its own roof. And since the building likely has an extended basement, it provides Dudley, and his muppet Ben Bernanke with a convenient location where to store the soon to be confiscated 107 tons of Greek gold.

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Good’ern Wolfgang! … except Jim is not a seller.

Bill

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Jim/Bill,

I know what you’re thinking.

Did he sell 6 gold coins in his pocket or only 5?

Well, to tell you the truth, in all this monetary excitement I’ve kind of lost track myself.

But being these are gold coins we’re talking about, the most powerful monetary instrument in the world and would blow your investments clear off the books, you’ve got to ask yourself one question – Do I feel lucky? Well, do ya, punk?

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CIGA Wolfgang Rech

Posted by & filed under Jim's Mailbox.

My dear extended family,

As promised during our recent call for subscribers, please see below opinion regarding Noble from our dear friend Gijsbert Groenwegen, I agree the information that is public that they got caught long so speculation what side they got killed on with credit lines.

Failure is high risk.

Jim

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Jim,

Regarding Noble;

• Either they were long silver and had to liquidate because the silver price was falling and went against them considering the low margin for silver futures or indeed they had some other losses because the increasing real interest rates and thus had to sell silver because it is one of the most liquid assets.

• I wonder if they were long silver and other commodities such as copper perhaps as a dollar hedge against the Yuan because as we know the 5 versus 10y sovereign bond rates inversed for the first time in the Chinese history last week meaning a weak outlook for the Chinese economy. And as you see below the copper price is still ok and in my point of view no real short coverings or otherwise.

• I will call a guy in London tomorrow who knows a lot about Shibor the Shanghai Libor, in other words the tightness in the Eurodollar market in china . Probably none of the Western banks wants to roll over 3 months US dollar loans in China because of the deteriorating situation in China hence also the weakening outlook for the Yuan. See FT article below about Noble’s financial situation. So perhaps Noble couldn’t roll over and had to liquidate silver.

• Though if the Yuan is expected to weaken that would mean that silver and copper and other US denominated commodities should do well. Although that didn’t happen the GDX and GDXJ have been very lackluster for 4-5 weeks now! Inside info?

• I also wonder if they were wrongly positioned with respect to oil and gas. A lot of traders in oil and gas have been wrongly footed lately!!Someone is keeping the price up and Vitol (Dutch!!!) mentioned that the fundamental demand for oil was weak.

• Look at this Financial Times article of March of the year. They seem to have problems with their debt. As mentioned perhaps the banks don’t want to roll over Noble’s loans.

CIGA GG

Noble Group plans $300m bond
March 6, 2017

Noble Group, the Singapore-listed commodity trader, is planning a $300m bond issue as it looks to replace short-term credit lines with longer-term funding.

Sample the FT’s top stories for a week

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The trading house, which has been hammered by two years of questions over its accounting during a commodity slump, is looking to take advantage of a rally in Asian high-yield debt market to launch the issue.

But the bonds are still likely to carry a coupon of 9 per cent, according to people familiar with Noble’s plans. Cheap finance is essential to commodity traders that typically operate on razor-thin margins.

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