Posts Categorized: Jim’s Mailbox

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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Posted by & filed under Jim's Mailbox.

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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Posted by & filed under Jim's Mailbox.

From our friend Robert, a set of eyes from outside of the US.

Bill

Democrats’ ‘Star Witness’ Admits He Wasn’t On Trump-Ukraine Call, Sole Source Was NY Times
November 6, 2019

House Democrats have released the latest in the series of heavily-redacted transcripts of the secret hearings they had undertaken in recent weeks – that of Bill Taylor – the top US diplomat in Ukraine – ahead of his public testimony next week.

As The Hill notes, Taylor is viewed as a key witness who previously testified in meticulous detail about what he considered an effort by Trump and his allies to pressure Ukraine into opening investigations that would benefit Trump politically.

In leaked copies of his 15-page opening statement, Taylor voiced concerns that the Trump administration had withheld nearly $400 million in aid as leverage to get Ukrainian President Volodymyr Zelensky to open investigations into interference in the 2016 election and former Vice President Joe Biden, one of his leading 2020 political rivals.

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Bill/Jim,

If what we are seeing moves forward, we may be witnessing the “Unwinding” of the criminal element…

JB

Dangerous Liaisons: New York Fed and JPMorgan’s Incestuous Relationship
November 6, 2019

The Federal Reserve Bank of New York (New York Fed) is just one of the 12 regional Federal Reserve banks around the country. But it has amassed enormous powers for itself since the Federal Reserve was created in 1913. Three of those powers dwarf all others: the ability to create money electronically at the push of a button; the accepted right to meddle in the markets; and the supervision of some of the largest bank holding companies in America.

After Wall Street blew itself up under the indulging and incompetent supervision of the New York Fed in 2008 and it was exposed that the Fed had secretly created $29 trillion in electronic money to bail out zombie banks – most of that funneled out by the New York Fed – most rational folks would have assumed that Congress would have stripped it of supervisory and money-printing powers for bailouts. Insanely, that did not happen and here we are today with the same deeply-conflicted New York Fed creating its own money to dole out $690 billion a week in super-cheap loans to unnamed securities firms while buying up $60 billion a month in the debt of the United States. (The Fed doesn’t want you to call the $60 billion a month QE4 because that would strongly suggest that this is just Stage II of the continuing 2008 bailout of Wall Street and that QE-Infinity is coming.)

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Jim/Bill,

Will only cryptocurrencies be used?

Dave

Sidewalk Labs Document Reveals Company’s Early Vision For Data Collection, Tax Powers, Criminal Justice
October 30, 2019

A confidential Sidewalk Labs document from 2016 lays out the founding vision of the Google-affiliated development company, which included having the power to levy its own property taxes, track and predict people’s movements and control some public services.

The document, which The Globe and Mail has seen, also describes how people living in a Sidewalk community would interact with and have access to the space around them – an experience based, in part, on how much data they’re willing to share, and which could ultimately be used to reward people for “good behaviour.”

Known internally as the “yellow book,” the document was designed as a pitch book for the company, and predates Sidewalk’s relationship and formal agreements with Toronto by more than a year. Peppered with references to Disney theme parks and noted futurist Buckminster Fuller, it says Sidewalk intended to “overcome cynicism about the future.”

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From our friend Werner.
Bill

Posted by & filed under Jim's Mailbox.

Jim/Bill,

On Saturday, Denny asked what Turkey’s breaking with NATO would mean for the USA as the former world leader.

Dave

Post-Trump, Macron Is Enlightened And Sochi Is The New Washington
November 2, 2019

Now that it’s all over but the shouting, a few people need to be thinking about the future, as Trump’s long-delayed impeachment gets underway. In the US, this will be a difficult exercise, due to the riveting, minute by minute coverage of a process that will continue for months, leading into the 2020 presidential election. However, on a positive note, America’s soap opera is forcing Europeans to begin a process that that has been delayed since the fall of the Berlin Wall and the dissolution of the Soviet Union.

Decades after these earth-shattering events, Europe is weakened by the triple difficulties of immigration, right-wing populism and continued obedience to Washington. As French President Emanuel Macron takes over from Angela Merkel’s decades-long leadership, Europe is no longer a model for social-democracy, but a cacophony. Although France is ‘the US’s closest ally after Great Britain’, only the website of a Russian-American known as The Saker publicized Macron’s recent, stunning acknowledgement that the world is fundamentally changing. In a yearly speech to France’s Foreign Ambassadors that reflects an education system based upon the rigorous analysis of complex ideas, (incarnated in the ‘dissertation’ that even science majors must master) forty-one year-old Macron announced that the international order is being shaken to its roots “by the great upheaval taking place for the first time in history.”

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Jim/Bill,

On Saturday, we talked about gun barrel diplomacy.

Dave

China Breaks The Western Debt Stranglehold On The World
November 2, 2019

The difference between the west and east is stark. While anybody and any country that does not agree with the US dictate and doctrine, risks being regime-changed or bombed, China does not impose her new Silk Road – the BRI – to any country. China invites, respecting national sovereignty. Who wants to join is welcome to do so. That applies as much to the Global South, as it does to Europe.

China’s President Xi Jinping launched the BRI in 2013. In 2014 Mr. Xi visited Madame Merkel in Germany, offering her to be at that time the western-most link to the BRI. Ms. Merkel under the spell of Washington, declined. President Xi returned and China continued working quietly on this fabulous worldwide economic development project – BRI – THE economic venture of the 21st Century, so massive that it was incorporated in 2017 into the Chinese Constitution.

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Jim/Bill,
Ever wonder why skyscrapers aren’t built 200, 300, 500, or more stories high?
The foundation can’t support them.
No different with debt.
Collapse is imminent.
This is a chart worthy to hang on your wall for a continual reminder of our precarious position:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

And this one points to the growing fear pervasive at the FED:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Be afraid. VERY afraid.
CIGA Wolfgang Rech

The ‘Mother Of All Bubbles’ Could Blow Up The Economy If Profits Don’t Improve, Warns Blackstone Strategist
November 4, 2019

“When we try to pick out anything by itself, we find it hitched to everything else in the universe,” wrote famed naturalist John Muir more than a century ago, referring to an epiphany he had while hiking in California’s Yosemite Valley.

In our call of the day, Blackstone BX, -1.04% strategist Joseph Zidle offers a similar take, but with dollar signs instead of granite cliffs.

“At the end of any economic cycle, we often get warnings that appear to be unrelated,” he wrotein a recent not. “It’s in hindsight that we realize that they were not at all random.” Investors saw this during the runup and aftermath of the housing bubble, he added, and we’re seeing it now.

Among the recent troubles he thinks are connected are repo market woes, negative-yielding debt, global trade conflicts and collapsing manufacturing. And every cycle ends with excess.

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Bill/Jim,

When JPM begins forfeiting higher yields from corporate lending, and parks its stash in 1.5% government bonds, it should send a red flag to all.

Expect a wave a defaults.  Not that “govvies” will protect them should yields soar on oversupply, but at least they’ll have a more liquid exit door.

This is NOT the bull market and roaring economy we are led to believe.

CIGA Wolfgang Rech

As I wrote in my article for subscribers today, “don’t listen to what they say, watch for what exactly they are doing”!

Bill

JPMorgan Pours $130bn Of Excess Cash Into Bonds In Major Shift
November 3, 2019

JPMorgan Chase has pushed more than $130bn of excess cash into long-dated bonds and cut the amount of loans it holds, marking a major shift in how the largest US bank by assets manages its enormous balance sheet. The moves, which have seen the bank’s bond portfolio increase by 50 per cent, are prompted by capital rules that treat loans as riskier than bonds. As it continues to return billions of dollars to shareholders in dividends and share buybacks each year, JPMorgan has less room than some rivals to hold riskier assets.

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