Posts Categorized: Jim’s Mailbox

Posted by & filed under Jim's Mailbox.

Jim/Bill,

Deep State antics are easy to spot.

JB

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jim/Bill,

You have told listeners, this was China’s plan.

Dave

China (Officially) Buys Gold For 7th Straight Month As Treasury Holdings Tumble
July 8, 2019

China continued its renewed (public) gold-buying spree in May adding another 10 tons of the precious metal to its reserve – the seventh month of buying in a row.

“It’s a diversification away from the U.S. dollar, particularly given the trade tensions and the potential technology cold war that’s evolving,” said Bart Melek, global head of commodity strategy at TD Securities.

“We have to remember that gold is nobody’s liability.”

While this figure is hotly contested as being an underestimate of Chinese State’s actual gold holdings, its the only figure available, and whatever the real number, its notable that the Chinese government has revived the trend of announcing physical gold purchases each and every month.

“Given the U.S.-China tensions, it is little surprise that China is attempting to diversify away its holdings of the dollar and Treasuries,” Howie Lee, an economist at Oversea-Chinese Banking Corp. in Singapore, said in an email, adding that it’s likely to continue adding in the coming months as its reserve holdings still lag countries such as the U.S. and Germany.

“Aside from its attempt to diversify its holdings of dollars, owning more gold reserves is also an important strategy in China’s rise as a superpower,” Lee said.

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Exactly Wolfgang!
Bill

Jim/Bill,

Much like the parable of frog, the public is being kept from understanding the impending dangers of the Fed interest rate policy decisions on equities, and more importantly, of China’s plan to move from US Treasuries into gold.  Any swift action would create panic in the markets, and China would not be able to sell its US Debt positions.  And gold would soar beyond their reach.  Thus, the slow and steady transition.

A frog sitting on a saucepan handle. The boiling frog is a fable describing a frog being slowly boiled alive. The premise is that if a frog is put suddenly into boiling water, it will jump out, but if the frog is put in tepid water which is then brought to a boil slowly, it will not perceive the danger and will be cooked to death.

en.wikipedia.org/wiki/Boiling_frog

 

 

 

 

 

 

 

 

There has been much speculation lately on the Federal Reserve and its ongoing tightening policy. If you were to only read mainstream economic news you would think the Fed had already reversed course and “capitulated”, but this is not the case. The Fed continues to hold interest rates at their neutral rate of inflation while also moving forward with asset dumps from their balance sheet. Nothing has changed since December/January when the Fed first made minor changes to its public statements hinting at “accommodation”.

https://www.zerohedge.com/news/2019-07-09/gold-will-rise-even-if-fed-doesnt-cut-interest-rates

China continued its renewed (public) gold-buying spree in May adding another 10 tons of the precious metal to its reserve – the seventh month of buying in a row.

“It’s a diversification away from the U.S. dollar, particularly given the trade tensions and the potential technology cold war that’s evolving,” said Bart Melek, global head of commodity strategy at TD Securities.

“We have to remember that gold is nobody’s liability.”

https://www.zerohedge.com/news/2019-07-08/china-officially-buys-gold-7th-straight-month-treasury-holdings-tumble

Be aware

Be cynical

Be safe

CIGA Wolfgang Rech

Posted by & filed under Jim's Mailbox.

Wolfgang,

“Where’s the beef” is part and parcel of our entire fabric these days…

Bill

Jim,

We spoke two weeks ago about the race to devalue all currency’s against gold. The race to the bottom is now on.

Dave

Trump Says US Should Join “Great Currency Manipulation Game” By Devaluing Dollar
July 4, 2019

President Trump has never been a fan of the strong dollar. And after beating around the bush for months by demanding a 50 bp rate cut and more QE from the Fed, it seems the president is now explicitly calling on the US to artificially weaken the greenback by any means necessary.

In a tweet, Trump blasted China and Europe for playing a ‘big currency manipulation game’ and recommended that the US “MATCH” or risk being “the dummies who sit back and politely watch as other countries continue to play their games.”
<blockquote class=”twitter-tweet” data-lang=”en”><p lang=”en” dir=”ltr”>China and Europe playing big currency manipulation game and pumping money into their system in order to compete with USA. We should MATCH, or continue being the dummies who sit back and politely watch as other countries continue to play their games – as they have for many years!</p>&mdash; Donald J. Trump (@realDonaldTrump) <a href=”https://twitter.com/realDonaldTrump/status/1146423819906748416?ref_src=twsrc%5Etfw”>July 3, 2019</a></blockquote>

<script async src=”https://platform.twitter.com/widgets.js” charset=”utf-8″></script>

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Jim/Bill,

Where’s the Beef?

 

 

 

 

 

Appearance is all that matters.   Everything else, the meat, we’ll……who really cares.

First we get the headline reporting huge job increases (Yet unemployment rises!  Go figure)

Then looking deeper into the stats, the next headline reports the increase was due people having to get 2,3,or 4 jobs to keep up with living expenses.  Not really pure job creation based on a roaring economy.

“To summarize: June saw a surge in full-time jobs, as total US employment hit a record high of 157 million workers, however virtually all of this increase was due to workers being forced to get a second (or third, or fourth) job, double- (and triple-)counting those who can no longer make ends meet on one job alone.”

Remember MOPE?   Management of Perspective Economics.

Especially relevant today with the Algo trading dominating the markets.

CIGA Wolfgang Rech

It Wasn’t All Great News: Multiple Jobholders Soar To Record High
July 5, 2019

While the headline payrolls number was stellar, coming in higher than even the most optimistic Wall Street forecast, one aspect of today’s jobs report that will likely become a major talking point for Democrats and other critics of the Trump economy, is that the number of multiple-jobholders soared from 7.855 million to 8.156 million, a monthly surge of 301,000 – the biggest since July 2018, and an indication that the jobs number was far weaker than the headline represents if one excludes all those workers who represented two jobs to the BLS’ various surveys.

 

 

 

 

 

 

 

 

 

 

 

 

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U.S. Adds 224,000 Jobs As Hiring Rebounds In June, Calming Worries About The Economy
July 5, 2019

By Jeffry Bartash

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The numbers: The U.S. added a robust 224,000 new jobs in June, rebounding from a recent lull and calming worries about the health of an economy now entering a record 11th year of expansion.

The increase in new jobs easily beat the 170,000 forecast of economists polled by MarketWatch.

Improved hiring last month dispels for now the threat of a dramatic slowdown in growth for an economy that just this month set the record for longest expansion ever. Ongoing U.S. trade disputes and a faltering global economy have dampened exports, wounded American manufacturers and undermined the confidence of businesses and consumers.

The U.S. and China — the world’s two largest economies — agreed last week to delay pending tariffs and return to negotiations given the high stakes involved.

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Posted by & filed under Jim's Mailbox.

Jim/Bill,

Supporting my post yesterday.

CIGA Wolfgang Rech

ROSS NORMAN : Gold Price Action Suggest Epic Events Close By
July 3, 2019

Love it or hate it … you just cannot ignore gold … it is after all a “bellwether”.

Originally a bellwether was a bell tied around the neck of a castrated ram (a wether) who would lead the other sheep and give the shepherd a ready reckoner on the movements of the flock. In financial markets it just refers to a leading indicator.

Gold is currently suggesting that dark things may be afoot on the economic front.

After six years of relatively tame ‘sheepish’ price performance, gold has suddenly become a turbocharged ram on a motorbike, without a helmet.

 

 

 

 

 

 

 

 

 

 

 

 

 

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Exactly Wolfgang.

Bill

Jim/Bill,

If there were ever any doubts, this should cast them away.

“it seems the president is now explicitly calling on the US to artificially weaken the greenback by any means necessary.”

Trump is signaling the next move for the Dollar, and hence…Gold.

CIGA Wolfgang Rech

Trump Says US Should Join “Great Currency Manipulation Game” By Devaluing Dollar
July 3, 2019

President Trump has never been a fan of the strong dollar. And after beating around the bush for months by demanding a 50 bp rate cut and more QE from the Fed, it seems the president is now explicitly calling on the US to artificially weaken the greenback by any means necessary.

In a tweet, Trump blasted China and Europe for playing a ‘big currency manipulation game’ and recommended that the US “MATCH” or risk being “the dummies who sit back and politely watch as other countries continue to play their games.”

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Posted by & filed under Jim's Mailbox.

As we have continually said, the debt (in the US AND globally) cannot ever be paid back in current values of currency.  This results in “devalue or die…!

Bill

Jim/Bill,

It’s the only exit in the room…Monetization.

Inflate away all debts, both public and private.

From the government’s profligate spending, to Municipal extravagance, to Student debt, to credit card issues, and more.

But the amount of inflation necessary must approach hyper inflationary status to work.

Serious stuff!

Mainly because the end result is the downfall of all economic systems and societal collapse.

CIGA Wolfgang Rech

The Clash Of Generations Is Here: Why People’s QE Is Inevitable
July 1, 2019

Via Global Macro Monitor,

Don’t know if you caught the Democratic debate the other night, which featured Bernie and Joe, who could be the grandfathers of some of the younger candidates that were on stage, but it also confirmed the arrival of what we have been writing about for years, the Clash of Generations.

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Courtesy of CIGA Werner.

Bill

 

This will end in a grand failure to deliver Wolfgang…

Bill

Jim/Bill,

Gold is always an indicator of potential turmoil somewhere.

“Gold was the enemy to me”  Paul Volker

“Then and now, the gold price is viewed as the inverse price of the confidence in the system.”

 

 

 

 

 

 

 

 

 

 

 

Being that is “capped” to prevent anyone from becoming enlightened, today’s jump in price especially significant.

The rise of $28 on no real news, despite any potential intervention, is truly significant.

Something may well be brewing and we’ll soon find out.

CIGA Wolfgang Rech

Paul Volcker: Gold Was the Enemy
March 26, 2015

NEW YORK—Paul Volcker is a living financial legend. As a chairman of the Federal Reserve in the early ′80s, he was singlehandedly responsible for quashing stagflation by raising interest rates to an unheard of 20 percent by June 1981.

What ensued was an unprecedented economic expansion and bull market in stocks, which was only seriously stopped by the Internet bust in 1999, caused by the lax monetary policy of Volcker’s successor Alan Greenspan.

As part of a meeting of the Committee for Monetary Research and Education, Volcker (88) gave us rare insights into his story, the working of the Fed, and current financial issues at the University Club in New York, on March 25.

Volcker served under both Democratic and Republican presidents but got along well with both.

“When I became chairman, we had pretty bad inflation. President Carter was under some pressure. He recognized inflation was a big problem and something had to be done about it,” he said.

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Posted by & filed under Jim's Mailbox.

Slowly but surely the ship sinks. Gold bear phase over.

Jim

Jim/Bill,

The Dollars will come home one day.

JB

Russia, China Sign Agreement on Payments in National Currencies in Blow to Dollar – Reports
June 28, 2019

MOSCOW (Sputnik) – Russian Finance Minister Anton Siluanov and Chinese People’s Bank Governor Yi Gang signed on 5 June an intergovernmental agreement to switch to national currencies in mutual payments, the Izvestiya newspaper reported on Friday, citing a letter from the Russian Finance Ministry.

According to the newspaper, the information about the accord is contained in the letter of Deputy Finance Minister Sergey Storchak to the chairman of the Russian lower house’s Committee on Financial Market, Anatoly Aksakov. The letter was a reply to Aksakov’s inquiry about the ministry’s efforts to intensify work on settlements with economic partners in national currencies and thereby “strengthen the country’s economic security.”

The letter also notes that new mechanisms for payments in national currencies between Russia and Chinese businesses were already under development.

Aksakov, in turn, told the newspaper that one of the options could be creating “gateways” between the Russian and Chinese analogues of the SWIFT payment system. An increase in payments in national currencies however will also require creating a market of ruble and yuan financial instruments, the senior lawmaker stressed. This, according to Aksakov, will let the two nations hedge risks of exchange rate fluctuations in bilateral trade. As a result, the share of ruble payments with China may rise from the current 10 percent to 50 percent in the coming years, the lawmaker estimated.

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Jim/Bill,

When a rotting carcass lies around, the stench gets worse as time goes by.

It’s no different with a zombie bank.

 

 

 

 

 

 

 

 

 

 

 

Take a whiff. Does it smell like Lehman?

CIGA Wolfgang Rech

Deutsche Bank To Fire Up To 20,000: One In Six Full-Time Positions
June 28, 2019

While Deutsche Bank finally delivered some good news for a change to its long-suffering investors, when it miraculously failed to fail the latest Fed stress test, on Friday the chronically sick bank reverted to its “cutting into muscle” baseline when the largest German lender with the €45 trillion notional derivatives was said to be preparing “to cut as much as half its global workforce in equities trading as part of a broad restructuring to boost profitability”, according to Bloomberg with the WSJ adding that the total number could be between 15,000 and 20,000 job cuts, or more than one in six full-time positions globally.

The cuts being contemplated by senior executives reflect an acceleration of Deutsche Bank’s downsizing and another major pullback from its global ambitions. If followed through, the reduction would represent 16% to 22% of Deutsche Bank’s workforce of 91,463 employees, as disclosed by the bank as of the end of March

Some employees in the bank’s equities department, anticipating cuts, have cleared personal belongings from their desks, and salespeople have curtailed client calls and meetings, WSJ reports citing people inside the bank.

Additionally, the investment bank, which had about 38,000 full-time employees at the end of March, is expected to take a big hit in any downsizing. The bank’s global equities operation, which has steadily lost clout to U.S. banks with stronger balance sheets, lost about €750 million in 2018, the Journal reported in March.

According to the proposed plan the bank will eliminate hundreds of positions in equities trading and research, as well as derivatives trading, and is expected to start informing staff of cuts – including in the U.S. and Asia – as soon as next month. Rates trading is also affected.

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Posted by & filed under Jim's Mailbox.

Jim/Bill,

Enough said.

JB

 

 

 

 

 

 

 

 

 

 

 

 

 

Jim/Bill,

We have known this was taking place for years the punch line is the tiny fine. No one goes to jail!

Dave

Merrill Lynch Caught Criminally Manipulating Precious Metals Market “Thousands Of Times” Over 6 Years
June 26, 2019

Remember when it was pure tinfoil-hat conspiracy theory to accuse one or more banks of aggressively, compulsively and systematically manipulating the precious metals – i.e., gold and silver – market? We do, after all we made the claim over and over, while demonstrating clearly just how said manipulation was taking place, often in real time.

Well, it’s always good to be proven correct, even if it is years after the fact.

On Tuesday after the close, the CFTC announced that Merrill Lynch Commodities (MLCI), a global commodities trading business, agreed to pay $25 million to resolve the government’s investigation into a multi-year scheme by MLCI precious metals traders to mislead the market for precious metals futures contracts traded on the COMEX (Commodity Exchange Inc.). The announcement was made by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office. In other words, if the Merrill Lynch Commodities group was an individual, he would have gotten ye olde perp walk.

As MLCI itself admitted, beginning in 2008 and continuing through 2014, precious metals traders employed by MLCI schemed to deceive other market participants by injecting materially false and misleading information into the precious metals futures market.

They did so in the now traditional market manipulation way – by placing fraudulent orders for precious metals futures contracts that, at the time the traders placed the orders, they intended to cancel before execution.  In doing so, the traders intended to “spoof” or manipulate the market by creating the false impression of increased supply or demand and, in turn, to fraudulently induce other market participants to buy and to sell futures contracts at quantities, prices and times that they otherwise likely would not have done so. Over the relevant period, the traders placed thousands of fraudulent orders.

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Posted by & filed under Jim's Mailbox.

Jim,

It seems country after country, is, or has had, a hard time getting the gold they thought was theirs. Wait until this happens to Comex and the ETFs.

Dave

ECB To Italian Government: Your Gold Is Ours
June 25, 2019

As the squabbling over Italy’s populist government’s plans to blow out its budget deficit to finance an agenda of tax cuts and social spending (including a ‘citizen’s income’ that’s essentially UBI-lite) crowded the headlines, the issue of who owns the 2,451 metric tons of gold reserves held by the Bank of Italy has been quietly ignored – at least, outside of Italy.

But that might be about to change.

On Tuesday, the ECB asked the League, the dominant party in Italy’s ruling coalition, to remove a reference to the Bank of Italy holding gold as an “exclusive title of deposit” according to Bloomberg.

Translation? If Italy is not allowed to have title to Italian gold, then Italy’s gold now belongs to the ECB.

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Jim/Bill,

This is a very long, very well researched article and may be the most important story readers have ever read. I hope they take the time needed to study it and realize what has, and is taking place.

Dave

How The CIA Made Google
January 22, 2015

Part 1

By Nafeez Ahmed

INSURGE INTELLIGENCE, a new crowd-funded investigative journalism project, breaks the exclusive story of how the United States intelligence community funded, nurtured and incubated Google as part of a drive to dominate the world through control of information. Seed-funded by the NSA and CIA, Google was merely the first among a plethora of private sector start-ups co-opted by US intelligence to retain ‘information superiority.’

The origins of this ingenious strategy trace back to a secret Pentagon-sponsored group, that for the last two decades has functioned as a bridge between the US government and elites across the business, industry, finance, corporate, and media sectors. The group has allowed some of the most powerful special interests in corporate America to systematically circumvent democratic accountability and the rule of law to influence government policies, as well as public opinion in the US and around the world. The results have been catastrophic: NSA mass surveillance, a permanent state of global war, and a new initiative to transform the US military into Skynet.

THIS IS PART ONE. READ PART TWO HERE.

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