Posts Categorized: Jim’s Mailbox

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Sorry Folks. Park’s closed!









Venezuela want its gold back, currently stored in the BOE vaults, and Great Britain says “NO”.

If this doesn’t send red flags throughout the international central banking community, I don’t know what will!

“The very fact that Great Britain asked Venezuela “what do you need your gold for?” is preposterous.

With the penalties in place, it’s impossible to sell the gold straight from the Bank of England.

Adding fuel to the fire, now this:

Germany, the second biggest holders of gold in the world after the US with 3,378 tons, finished repatriating 300 tons from the US last year. It had taken the United States several years to do it! It was reported that the gold bars received by Bundesbank had different labels to make one think that US might have replaced the German bullion with different gold bars bought from the market. It means the gold was not in place when the Germany’s request for return was made. Perhaps, the UK is not able to comply with Venezuela’s request for the same reason – the gold is not in vaults and London needs time to purchase it.

Today it’s Venezuela; tomorrow it could be any other holder on the list of more than 30 nations keeping gold reserves in BOE vaults.”

CIGA Wolfgang Rech

UK Blatantly Violates Norms of Decent Behavior
November 10, 2018

Russia and Venezuela are among the countries the EU, including Great Britain, has imposed sanctions on. Both nations have been targets of London’s vigorous attacks, being blamed for numerous nefarious things they have allegedly done. The UK insists that everyone play by the rules. Meanwhile, London is making mockery of commonly accepted norms in the international relations.

The government of Venezuela is seeking to eventually repatriate at least 14 tons of gold held at the Bank of England (BOE). It has recently asked to release the gold bars worth about £420 million or $550 million. This is the right and timely move as the new round of punitive measures recently imposed on Caracas by Washington showed. The Bank has refused to do so!

UK officials have reportedly insisted that Venezuela clarify its intentions for the gold. Venezuelan President Maduro is suspected by London of harboring plans to sell the national treasure for personal gains. There is also a subterfuge used to explain why the Venezuelan property has not been returned to the owner. The UK says it’s very hard to obtain insurance for the shipment to move the large cargo. Even if Venezuela gets the gold back, it’ll be a large order to use it for raising hard currency because of the new round of US sanctions announced on Nov.1. With the penalties in place, it’s impossible to sell the gold straight from the Bank of England.


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We brought this up on Saturday, accidents can and do happen…then what?


Unsafe Military Encounters Are Getting More Frequent
November 10, 2018

This week, a U.S. Navy reconnaissance aircraft flying in international airspace over the Black Sea was intercepted by a Russian fighter jet. The Navy released video footage of the incident, labeling the intercept “unsafe” and “irresponsible”.

The footage shows the Russian SU-27 turning on its afterburners and banking in front of the U.S. EP-3 Aries, creating vibrations which the crew could feel inside.




We talked about this on Saturday.


Russia Deploys Its Avangard Glide Vehicle – the Unmatched Leader in Hypersonic Technology
November 8, 2018

On Oct. 12 CNBC reported that Russia had hit a snag in its development of its hypersonic weapon, because it was at the time unable to find a source for the critical carbon fiber components. The news agency stated that the Pentagon had doubts that the Avangard hypersonic glide vehicle (HGV) existed. Skepticism seems widespread. Some believe that Russia’s new super weapons are “virtual reality,” while others think they are “mostly hype.” In March, the National Interest cited Michael Kofman, a research scientist for the Center for Naval Analyses and a highly respected analyst, who offered his assurances that there was no chance Russia could field its hypervelocity boost-glide weapon by 2019.  But history has shown that those who believed it to be just a bluff have been proven wrong.

According to recent Russian media reports, the Avangard hypersonic boost-glide system, one of the new super weapons that President Putin mentioned in his address to the Federal Assembly in March, went into production last summer and will be operational with the 13th Strategic Missile Forces division by the end of 2019. It will be deployed near Yasny, a town 502 kilometers (312 mi) southeast of Orenburg in the southern Urals, by the end of 2019.

Normally it takes two systems for a regiment to be combat ready by that time, but in this case that number will be increased to six. At least two regiments with six systems each are expected to be battle-ready by 2027. According to the state armaments program (GPV2027), twelve UR-100UTTKh (NATO: SS-19 Stiletto) missiles will be integrated into the Avangard hypersonic glide vehicles (HGVs). The deployment of the HGV might begin without additional flight tests. Eventually, the Sarmat RS-28 ICBM could be used to deliver the Avangard, potentially carrying a single, massive thermonuclear warhead with a yield exceeding two megatons.




As you said on Saturday, it is all about Sovereign debt!


The Nation’s Fiscal Doomsday Machine is Now Unstoppable
November 9, 2018

By David Stockman

Earlier this year the Donald provoked a bleep-hole moment per the Fox “family channel” or what was otherwise known as the shit-hole moment across the rest of the MSM.

But whatever you called the contretemps spurred by the president’s crude utterance with regard to certain countries domiciled on the African continent, the claim this was evidence that he’s an incorrigible racist was risible. Actually, we already knew that the Donald is a semi-literate bully, who never got (read) the memo on racial comity—to say nothing of political correctness.

 Still, there is a not inconsiderable share of Washington’s preening, self-important ruling class that indulges in that very same kind of gutter talk on a regular basis when puffing their chests and marking the objects of their displeasure. That’s why the shaming chorus which sprung up from all corners of the Swamp was enough to give hypocrisy a bad name.

 But if we have to have a shaming of politicians, there is a far better reason for it than that unfortunate presidential slur.


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Apologies, there is more to the story below.


Embattled Attorney General Jeff Sessions resigns under pressure from Trump
November 7, 2018

Embattled Attorney General Jeff Sessions resigned at the “request” of President Donald Trump on Wednesday after more than a year of public criticism from the president.

Sessions’s chief of staff Matthew Whitaker will serve as acting attorney general, Trump announced.

Whitaker also will assume oversight of the ongoing investigation by special counsel Robert Mueller into Russian interference in the 2016 presidential election, and possible collusion by Trump’s campaign in that meddling, according to the Justice Department.

Whitaker, who has publicly criticized the Mueller investigation, by law can serve as acting AG for a maximum of 210 days.




The latest news this morning regarding international payments systems:

SWIFT Caves To US Pressure, Defies EU By Cutting Off Iranian Banks
November 7, 2018

However, Europe will respond:

See the source image

The U.S. is cutting off their nose to spite their face.

Is anything thought through?

Somebody teach these guys the game of chess.  Checkers just doesn’t cut it anymore.

CIGA Wolfgang Rech

Europe’s Alternative To Swift Another Nail In The Dollar’s Coffin
September 27, 2018


  • Europe’s alternative to SWIFT will allow them to get around trade sanctions the US has put on Iran.
  • Russia, China, and European leaders have all expressed the desire to move past the dollar system for international trade.
  • The Dollar’s reserve currency status is under serious threat considering trade deals being negotiated in other currencies and gold.
  • The Wall Street Journal reports that Europe has agreed to develop an alternative to the SWIFT payments system to facilitate trade with Iran.

    The European Union’s announcement that it would establish a special payments channel to maintain economic ties with Iran sent a clear message to Tehran and Washington: Europe is intent on trying to save the 2015 nuclear deal.



Courtesy of Q via JB.















Courtesy of JB.


The Senate was the target.

Corker + Flake removed.

How do you catch a FISH?

Mission forward.

These people are stupid.



Future proves past.












It’s not the auction itself, but the inner workings that should spook everyone.

Note the common denominator in the past few auctions listed at the end of this posting:  Direct Bidder Collapse!

This could be significant as it represents a lack of demand by asset management firms, which are generally thought of as offsetting any central bank selling.  Here’s a snippet from an older article, but the concept is still the same:

“Global reserves turned negative on a year-over-year basis in the middle of 2015 (blue-line in the chart below). In spite of this and the strong correlation of foreign treasury holdings (red-line), ten-year treasury yields have remained stubbornly low. Many market pundits have theorized that central bank selling pressure in treasuries will be offset by a “risk-off” trade domestically. The argument is that during times of market uncertainty where emerging market governments are grappling with slow economic growth, a flight of capital, and weakening currencies, there is a burgeoning demand among investors and asset managers for treasuries. This demand naturally offsets the selling pressure by Central Banks as they try to stem their currency devaluations by buying their domestic currencies (selling dollars and U.S. treasuries). “






My fear is that the consensus of opinion is showing a global slowdown today, as was back in then, but with a major difference…the Direct Bidder is no longer there!

CIGA Wolfgang Rech

Bond Traders Shocked By Dismal 30Y Auction As Direct Bidder Collapse Continues
November 7, 2018

When discussing yesterday’s stellar 10Y auction, we said that we expect today’s sale of $19 billion in 30Y paper to show the same collapse in Direct bidder demand observed that has been observed for the past 2 weeks. Well, that’s precisely what happened. However, it was much more than just that in what was a truly dismal auction.

Starting at the top, the yield on today’s 30Y auction was 3.418%, the highest since April 2014, which tailed the When Issued 3.395% by 2.3bps, the biggest delta in years and a major surprise for the market which did not expect such a poor topline demand heading into today’s auction. The bid to cover was also dreadful, printing at just 2.058, not only far below last month’s 2.419% and the six auction average 2.36%, but also the lowest since February 2009.

Meanwhile, it was the internals where the big “surprise” was to be found once again, as the ongoing Direct bidder collapse emerged again, with Directs taking down just 2.9% of the auction, far below last month’s 12.8%, and the lowest since Sept. 2009. The Treasury has yet to provide some argument or justification for the ongoing boycott by this aspect of the buyside. Offsetting the plunge in Directs was a relatively strong Indirect bid, if at 59.1% it was also the lowest since March 2018. Rounding off the demand were Dealers, who took down 38.1% of the auction, the highest since August 2015.


Bizzare Plunge In Direct Demand Continues In Today’s 3Y Treasury Auction
November 5, 2018

Two weeks ago we observed a series of Treasury auctions, specifically the 2Y, 5Y and 7Y issues in late October, which were generally in line with historical average except for a perplexing collapse in Direct Bidders. Today, this Direct bidder “boycott” continued, when moments ago the Treasury sold $37 billion in an upsized 3Y auction whose most notable feature was the plunge in the Direct takedown.

First, the big picture: the 3Y auction stopped at a high yield of 2.983%, just below last month’s 2.989% and tailing the When Issued 2.980% by 0.3bps, and the 2nd highest since May 2007. The bid to cover printed at 2.54, also in line with last month’s 2.56 if below the 6 auction average of 2.67.

However, it was the internals where the surprise lay again, because while Indirects took down a strong 49.1%, the highest since July, and above the 42.1 6 auction average, the Directs tumbled again, taking down just 3%, or $1.1 billion, of the auction after tendering $2.8BN in bids. This left Dealers holdings 47.9% of the auction, the highest since December 2016.

As we discussed two weeks ago, it remains a mystery why the Direct bid has suddenly dried out, and due to the Treasury’s somewhat nebulous distinction between Directs and Indirects, as well as what and who Dealers actually buy US paper for, it will be next to impossible to get to the bottom of this recent quandary without the Treasury itself chiming in.


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Until someone uses the right words…



Please note the point that is made by Wolfgang as it pertains to gold confiscation arising out of some definition of Sanctions and or Tariff/Currency conflicts. The bullion gold you hold physically in the USA must be USA minted for your peace of mind.



Logical move.  The more the West squeezes, the more it hurts itself.

Better to have gold in your hand than in western banks.

Confiscation based on sanctions could be a consideration.

“If the government wants to carry out operations with the gold that it plans to bring, it would have to be done with allied countries because of the sanctions,” said Tamara Herrera, an economist with Sintesis Financiera.

Venezuela has been exporting gold to Turkey in the last year, a business that has grown as Maduro has built up ties with Turkish President Tayyip Erdogan.

Selling the gold directly from the Bank of England to a foreign buyer would be logistically easier than shipping it, but could also risk running foul of sanctions.

Imagine that…..Turkey is proving more trustworthy than the Bank of England, or the West in general for that matter.

CIGA Wolfgang Rech

Exclusive: Venezuela Seeks To Repatriate $550 Million Of Gold From Britain – Sources
November 5, 2018

CARACAS (Reuters) – Venezuela is seeking to repatriate about $550 million in gold bars from the Bank of England because of fears it could be caught up in international sanctions on the country, two sources with direct knowledge of the effort told Reuters.

Venezuela’s hard currency holdings have dwindled as existing U.S. financial sanctions have effectively blocked President Nicolas Maduro’s government from borrowing on international markets.

The Trump administration on Thursday issued a new round of sanctions banning U.S. citizens from having dealings with anyone involved in “corrupt or deceptive” gold sales from Venezuela, as part of efforts to boost pressure on Maduro.

Maduro’s government is seeking to bring 14 tonnes of gold held in the Bank of England back to Venezuela, according to two public officials with direct knowledge of the operation, who asked not to be identified.



In the world of sudden change politically, this is not impossible at all. This article should read and considered.
The recent problem with Saudi Arabia is a an example of a situation that could start an financial avalanche, which would be the real straw to break the camel’s back.



If Iran, in retaliation against potential oil export sanctions, decides to close the Straits of Hormuz and commandeer oil tankers and bomb mid-east neighbors involved, then you have $400 oil overnight.

Imagine driving to work with gasoline at $20 – $30 per gallon!

What will you do?

“If we achieve a issue that our oil is not exported, the Strait of Hormuz will be mined. Saudi oil tankers will be seized and regional nations will be leveled with Iranian missiles. 

If Iran decides, a one fall of this region’s oil will not be exported and in 90 minutes all Persian Gulf countries will be wrecked. The UAE and Saudi Arabia will be wrecked in 60 minutes. Right after 90 minutes the U.S. will have nothing at all in this country. And we have not even begun with Israel. Beware of the day we go immediately after Israel, as well. That’s why they want us to spherical up our missiles.”

Probable: NO  Possibele YES

CIGA Wolfgang Rech

Iran Releases 3-Minute Video Message Vowing Global Partners Will Help It Beat Sanctions
November 6, 2018

Less than 24 hours after crippling U.S. sanctions went into effect targeting primarily Iran’s energy sector, and hours after SWIFT suspended Iranian banks from accessing the global financial messaging system, succumbing to pressure from the Trump White House, Iran’s Foreign Minister Javad Zarif has published the Islamic Republic’s official statement in response.

In a 3-minute video posted to YouTube and published by official government social media accounts featuring Zarif standing in front of Tehran during what appears to be the early morning hours of Tuesday in Iran, the FM condemned what he called the “absurd, unlawful, and fundamentally flawed” anti-Iran sanctions that went into effect Monday and called out the “hypocritical claims of the Trump administration”. He confirmed that Iran has rejected the White House’s latest demands articulated alongside the sanctions, and declared willingness to do battle against Washington’s economic warfare for the long haul.

FM Zarif said:

    We have weathered difficult times in the face of 40 years of American hostility, relying solely on our own resources. And today we and our partners across the globe will ensure that our people are least effected by this indiscriminate assault in the economic warfare that directly targets the Iranian people.


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“A step towards contract settlement in the currency of the trading partner’s, not the USD, is a big step backwards for the dollar.”

Courtesy of JB.


Turkey Seeks to Trade in National Currencies With Russia, China, Iran
November 4, 2018

Turkish Foreign Minister Mevlut Cavusoglu’s recent remarks echoed President Recep Tayyip Erdogan’s earlier call to put an end to the dollar’s domination and begin trading in national currencies.

Delivering an opening speech at the 18th session of the D-8 Council of Foreign Ministers in Antalya, Turkish Foreign Minister Mevlut Cavusoglu announced that Ankara was looking to engage in trade with Russia, China and Iran using national currencies.

“We are experiencing a period of trade wars. The best response against this would be using our local currencies in trade. Turkey is preparing to do trade in local currencies with countries such as China, Russia, Iran and Ukraine. We also continue such negotiations with other countries,” he said.

Cavusoglu also stated that it was possible to implement such a plan within the D-8 Organization for Economic Cooperation, also known as the Developing-8, which includes eight emerging economies from the Islamic world – Bangladesh, Turkey, Pakistan, Indonesia, Iran, Malaysia, Egypt and Nigeria.


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I hope you will read this. You need to be informed in order to make informed what they do and what their children are exposed to in the use of cell phones and other electronics.

A forty-nine minute read worth your time.


The Full Story On Emfs: Research, Dangers, And How To Protect Yourself
April 9, 2018

In today’s technology-filled world, we are surrounded by electromagnetic fields (EMFs), invisible energy fields that affect us up to 24 hours a day. With the growth of wireless technologies, there are more questions every day, with the main one being: Are they safe?

While the wireless companies and the Federal Communications Commission (FCC) claim they are, there are more independent studies coming out confirming these fields carry severe health complications for society, as well as harm the environment. Moreover, further digging uncovers how corrupt the FCC is, and that the organization gave up its power to protect the people against EMFs a long time ago.

Since the wireless industry’s growth has not stopped but sped up, it is time to arm ourselves with the knowledge to protect our families.

What we know today is that the World Health Organization (WHO) has classified EMFs as “group 2 carcinogenic: a possible carcinogen to humans,” based on studies that link cellphone use to brain cancer. Some scientists say this is not enough and urge WHO to change EMFs to a “group 1: carcinogenic to humans.”




Here are some notes from Saturdays talk.


The Taliban Is Stronger Now Than At Any Time Since Afghanistan War Began In 2001
November 1, 2018

Afghan security forces’ control of the capital Kabul has slipped in recent months as it also suffers record-level casualties fighting against the Taliban, a watchdog reported.

Resolute Support, the US-led NATO mission in Afghanistan, released figures on Wednesday that showed Afghan forces controlled or influenced 55.5 percent of the capital.

The figure is down 0.7 percent from the previous quarter, according to the US Special Inspector General for Afghanistan Reconstruction (SIGAR), and marks the lowest level since records were first kept in November 2015.

SIGAR added that a full 12 percent of Kabul’s districts were under Taliban control or influence, with 32 percent considered “contested”.

Last year, US President Donald Trump unveilled a new Afghan war strategy that recommitted thousands of troops there and scrapped any timeline for a withdrawal.



Jim and Bill,

As you said on Saturday, bankruptcy is the only way out.

Ernest Hemingway once wrote, “How did you go bankrupt? Two ways. Gradually, then suddenly.”


Who Really Built America’s Massive Pyramid Of Debt?
November 1, 2018

Ernest Hemingway once wrote, “How did you go bankrupt? Two ways. Gradually, then suddenly.”, a website that provides visualizations about money, recently published a new report that shows a unique perspective, breaking down debt into the deficits of each U.S. President has added throughout history.

Hemingway’s warning looks strikingly similar when it comes to the U.S. national debt, which now stands at a whopping $21 trillion.

When President Trump was elected, the National Debt Clock at 1133 Sixth Ave., New York, NY, where it has flashed sobering stats on America’s indebtedness from the Durst Organization-owned office tower since 2004, was quickly removed.

Now, one must check Twitter @NationalDebt for daily sobering tweets about the debt. And, as of October 29, the U.S. national debt officially stood at $21,694,906,926,249.

    $21,694,906,926,249.19 (-) #NationalDebt

    — National Debt Tweets (@NationalDebt) October 29, 2018



The U.S. “Cannot Win Militarily” In Afghanistan, Says Top Commander In Shocking Interview
November 3, 2018

Historians of the now seventeen-year old U.S. war in Afghanistan will take note of this past week when the newly-appointed American general in charge of US and NATO operations in the country made a bombshell, historic admission. He conceded that the United States cannot win in Afghanistan.

Speaking to NBC News last week, Gen. Austin Scott Miller made his first public statements after taking charge of American operations, and shocked with his frank assessment that that the Afghan war cannot be won militarily and peace will only be achieved through direct engagement and negotiations with the Taliban — the very terror group which US forces sought to defeat when it first invaded in 2001.

“This is not going to be won militarily,” Gen. Miller said. “This is going to a political solution.”

Miller explained to NBC:

    My assessment is the Taliban also realizes they cannot win militarily. So if you realize you can’t win militarily at some point, fighting is just, people start asking why. So you do not necessarily wait us out, but I think now is the time to start working through the political piece of this conflict.




You have said this many times…


East Trusts In Physical Gold While West Prefers ‘Mindless Optimism’ – Claudio Grass To RT
November 3, 2018

The latest data from the World Gold Council (WGC) shows that central banks in Eastern Europe and Asia significantly boosted their gold holdings. The regulators purchased 148 metric tons of gold in the third quarter of 2018.

The figure indicates an increase of 22 percent against the same period last year, while some $6 billion dollars were spent on the precious metal.  Russia, Turkey, Kazakhstan, India, as well as Poland and Hungary were the leader among gold net buyers.

The reasons pushing Russia, Turkey and other countries facing US sanctions to buy more gold seem clear. But why are other countries bolstering their gold reserves and why do they find it necessary to diversify their holdings? RT talked to Claudio Grass, an independent precious metal advisory based out in Switzerland to find out why emerging economies are so active in stockpiling gold bullion.

RT: For years, Russia, China, India as well as many Asian countries have been stockpiling gold. More recently, countries like Poland and Hungary have begun to increase national gold reserves. What’s behind the move?


I can only wish I had written this!


George Roof: Presidents I’ve Known-

by George Roof, Chief Master Sergeant, USAF (Retired)

Interesting Google Search on His Name

 http://www.truthorfiction. com/george-roof-presidents- ive-known/

George Roof: Presidents I’ve Known-Correct Attribution!

Retired Air Force Master Sgt. George Roof has penned a viral political commentary titled “President’s I’ve Known.”

Because I am a “lifer” in the military, I’ve seen the impact of a president more than many of you can imagine.  I enlisted with LBJ and saw just what a Democrat clusterflock was all about.  I went to Vietnam and saw how we were constantly and incessantly bombarded with micromanagement from Washington that got thousands of military people killed.  I sometimes wonder if I’ll get to heaven, but if I go to hell, I’m sure I’ll still be a few hundred floors above that bastard Robert McNamara , LBJ, John Kerry, Jane Fonda, and yes, even the “hero” John McCain.

After Johnson “abdicated” rather than having his ass waxed, I lived through Nixon who was hawkish but allowed the generals (and there WERE a few real generals back then versus now) run the show.  He was so out of touch that he never knew North Vietnam was about to surrender when the Paris Accord was presented.

Only God could help us after Gerald Ford was beaten by Jimmy Peanuts who’d been funded by Saudi money.  The military was turned into Section 8 and even the Whitehouse suffered the austerity.

Then the light began to shine and Ronald Reagan swept into the fray.  He not only loved the country and the military, they loved him back.  Esprit d’corps was off the scale during his presidency.  The Liberals were slowly turning into socialists, however, and about this time all the draft dodgers of the 1960’s who’d been given amnesty by Jimmy Peanuts were turning out college graduates with degrees in socialism.


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Hiring for what?

Heh, heh, heh.

I wonder who they’re hiring?

Factory Orders plunge yet hiring surges?

See the source image

Must be the demand for servers for Dollar meals at McDonalds.

CIGA Wolfgang Rech

Factory Orders Growth Slows In September As War Spending Plunges
November 2, 2018

Amid significant revisions, September’s factory order growth slowed from +2.6% MoM in August to +0.7% MoM as it seems the pre-tariff surge is over…

Year-over-year growth in factory orders also slowed notably but remains solid…