Posts Categorized: Jim’s Mailbox

Posted by & filed under Jim's Mailbox.

Jim/Bill,

Can you think of any other country that is going down this road?

Dave

Argentina. The Truce Is Over: The Peso Cannot Survive A Destructive Monetary Policy
October, 1, 2018

The government of Mauricio Macri lived a week of apparent tranquillity, but the resignation of Luis Caputo as President of the Central Bank and a new IMF deal triggered the end of calm.

 

 

 

 

 

 

It was essential for the government to understand that these periods of calm are what it needs to carry out structural reforms, not to think that “everything is discounted” and continue regardless.

The appointment of Guido Sandleris has not been the change that Argentines and markets expected. His profile is perceived as more than continuity, more a defender of the past monetary policies that have led the country to stagflation and a supporter of the price controls that have eroded consumer and investor confidence.

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Jim/Bill,

China will simply trade with other countries.

Dave

New Silk Roads Define Brand China
October 4, 2018

The New Silk Roads symbolize way more than high-speed rail lines crisscrossing Eurasia, or a maze of highways, pipelines and port connectivity. They represent a Chinese alliance with at least 65 participating nations, responsible for 62% of the world’s population and 31% of its GDP.

The Belt and Road Initiative (BRI), as it’s formally known, is not a “road” or a collection of roads, like the Ancient Silk Road. It’s a strategic axis embodying the organizing Chinese foreign policy concept for the next three decades. And BRI goes beyond Eurasia and Africa, extending all the way to Latin America as well, as Foreign Minister Wang Yi stressed in January at the summit between China and the Community of Latin American and Caribbean states.

Tackling every field from communications strategy to infrastructure, finance, culture, education and geopolitical relations between states, BRI aims to reinforce China’s political capital.

The emphasis so far – we’re still in the initial planning stage – is not even on concrete projects, although some are already game-changers. Take for instance the new railway linking the dry port of Khorgos, on the China-Kazakhstan border, to Almaty (in Kazakhstan), Tashkent, Samarkand and Bukhara (in Uzbekistan), Turkmenabat (in Turkmenistan), to Mashhad in Iran and all the way to Tehran.

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Please Dear God,

May the aberrative but positive economic statistical boom last at least through the day of the Med Term election.

May the left never acquire guns.

May Soros have an epiphany and retire to Risikesh, India for his Himalayan cave meditation, missing his next trip to Switzerland and Thailand for the magic rejuvenation procedures.

I know Lord that you picked the right man, not the saint, to get the job done.

May the socialists get voting day wrong, and all appear one day later.

Gratefully,

Jim

Jim/Bill,

Hello? Anybody home in the BLS?

No answer probably because the staff was let go in our record breaking economic resurgence.

America’s largest telecommunications company getting rid of 25% of its workforce?

Yup. Sure looks like a record increase in private sector jobs…….NOT!

Why Traders Are “Whispering” About A 500,000 Jobs Print Tomorrow

Behind the scenes, the rot continues.

CIGA Wolfgang Rech

Verizon’s Severance Offer Goes To About 44,000 Employees
October 4, 2018

Verizon Communications offered voluntary severance packages last month to roughly 44,000 employees.That comes to more than a quarter of the carrier’s workforce.

A spokesman for the company confirmed the scope of the offer, which was previously reported by The Wall Street Journal.

The severance packages will give Verizon “an opportunity to find more efficiencies in the size and scope of our V Team and help expedite the building of an innovative operating model for our future,” Chief Executive Hans Vestberg wrote in a memo sent to employees last week and reviewed by the Journal.

Verizon seeks to cut $10 billion in costs and upgrade to a faster, 5G network.

Employees eligible for the severance packages were offered three weeks’ pay for each year of service up to 60 weeks.

In addition to the offers, Verizon on the same day, notified many information technology employees that they were being transferred to Indian outsourcing giant Infosys as part of a $700 million outsourcing agreement.

Verizon had a global workforce of more than 153,000 employees.

The  employees who either received the severance offer or are affected by the Infosys deal amounts to about 30% of the workforce.

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Courtesy of JB.

Jim

Precious Metals Moving Higher As US Interest Rates Go Pop!
October 4, 2018

Good Thursday Morning Folks,

Gold is higher in the early morning trade gaining $3.80 with the price at $1,206.70 and right beside its high at $1,206.90 with a low at $1,199.60.  Silver has gained 11 cents with its trade at $14.78 and it too is trading right beside its high with its low down at $14.585, sometime way before 5 am pst. The US Dollar is still moving higher with its trade at 95.45, up 4.4 points and it too is right beside its low and nowhere near its high of 95.78. Venezuelan Gold is priced at 298,795,800 gaining another 256,000 Bolivar. Silver, under the same currency, is trading at 3,665,685 gaining 9,941 Bolivar over the past 24 hours.

Oct Silvers delivery count has really fallen off with the totals now at 23 contracts (115,000 ounces) as 59 obligations got settled out during yesterday’s trade with zero volume showing up so far this morning. Silver’s overall Open Interest continues to drop in very slow fashion with the count now at 200,191 overnighters as 54 contracts dropped off the board.    

Another bank branch has been identified as part of a money laundering gang as Danske Bank, in Estonia, was caught washing some $235 billion as the compliance officers are now claiming “this is suspicious”, but only years later. Yet inside the very same article a much bigger scheme has been identified … “And while that might seem like a staggering sum ($235 billion) and raise(s) questions about how regulators on the Continent managed to overlook this, the full scale of the money laundering that took place in the Baltics is even more staggering. According to (the) data provided to Bloomberg by the Estonian central bank in Tallinn, Estonian banks handled about 900 billion euros, or $1.04 trillion, in cross-border transactions – a figure that includes the highly suspect non-resident flows – between 2008 and 2015”. All the while, our Federal Reserve printed more dollars to bail out an unknown amount of international banks. If you can recall, Ben Bernanke couldn’t answer how many foreign banks got our newly printed fiat, very curious. 

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Guess what will happen? Mueller probe? Clintons, Obama? Military tribunals?!

GG

Top FBI Lawyer Flips: Russia Probe Was Handled In “Abnormal Fashion” And Rife With “Political Bias”
October 4, 2018

James Baker, a former top FBI lawyer, told congressional investigators on Wednesday that the Russia probe was handled in an “abnormal fashion” and was rife with “political bias” according to Fox News, citing two Republican lawmakers present for the closed-door deposition.

“Some of the things that were shared were explosive in nature,” Rep. Mark Meadows, R-N.C., told Fox News. “This witness confirmed that things were done in an abnormal fashion. That’s extremely troubling.”

Meadows claimed the “abnormal” handling of the probe into alleged coordination between Russian officials and the Trump presidential campaign was “a reflection of inherent bias that seems to be evident in certain circles.” The FBI agent who opened the Russia case, Peter Strzok, FBI lawyer Lisa Page and others sent politically charged texts, and have since left the bureau. -Fox News

Baker, who worked closely with former FBI Director James Comey, left the bureau earlier this year.

Lawmakers did not provide any specifics about the interview, citing a confidentiality agreement signed with Baker and his attorneys, however they said that he was cooperative and forthcoming about the beginnings of the Russia probe in 2016, as well as the FISA surveillance warrant application to spy on former Trump campaign aide Carter Page.

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Posted by & filed under Jim's Mailbox.

Jim/Bill,

All I can say is “party on Garth”! The bill will come due, and soon.

Dave

US Gross National Debt Jumps by $1.27 Trillion in Fiscal 2018, Hits $21.5 Trillion

by Wolf Richter
October 1, 2018

But wait — these are the Boom Times!

The US gross national debt jumped by $84 billion on September 28, the last business day of fiscal year 2018, the Treasury Department reported Monday afternoon. During the entire fiscal year 2018, the gross national debt ballooned by $1.271 trillion to a breath-taking height of $21.52 trillion.

Just six months ago, on March 16, it had pierced the $21-trillion mark. At the end of September 2017, it was still $20.2 trillion. The flat spots in the chart below, followed by the vertical spikes, are the results of the debt-ceiling grandstanding in Congress:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Your cell phone just rang. So did mine. Courtesy of JB and Q.

Jim

Q Clearance Patriot
November 1, 2017

My fellow Americans, over the course of the next several days you will undoubtedly realize that we are taking back our great country (the land of the free) from the evil tyrants that wish to do us harm and destroy the last remaining refuge of shining light. On POTUS’ order, we have initiated certain fail-safes that shall safeguard the public from the primary fallout which is slated to occur 11.3 upon the arrest announcement of Mr. Podesta (actionable 11.4). Confirmation (to the public) of what is occurring will then be revealed and will not be openly accepted. Public riots are being organized in serious numbers in an effort to prevent the arrest and capture of more senior public officials. On POTUS’ order, a state of temporary military control will be actioned and special ops carried out. False leaks have been made to retain several within the confines of the United States to prevent extradition and special operator necessity. Rest assured, the safety and well-being of every man, woman, and child of this country is being exhausted in full. However, the atmosphere within the country will unfortunately be divided as so many have fallen for the corrupt and evil narrative that has long been broadcast. We will be initiating the Emergency Broadcast System (EMS) during this time in an effort to provide a direct message (avoiding the fake news) to all citizens. Organizations and/or people that wish to do us harm during this time will be met with swift fury – certain laws have been pre-lifted to provide our great military the necessary authority to handle and conduct these operations (at home and abroad).

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LBMA (Lying Broadly on all Metals Association) has some splainin’ to do.

JB

LBMA Clearing and Vaulting data reveal the absurdity of the London ‘Gold’ Market
October 2, 2018

Submitted by Ronan Manly, BullionStar.com

The first day of each month sees the reporting of a number of statistics about the London Gold Market by the bullion bank led London Bullion Market Association (LBMA). These statistics focus on clearing data and vault holdings data and are reported in a 1 month lag basis for clearing activity and a 3 month lag basis for vault holdings data. Therefore the latest clearing data just published is for the month of August, while the latest vault holdings data is for the end of June.

While LBMA clearing data has been published for many years now, publication of vault holdings data by the LBMA is a recent phenomenon and only began at the end of July 2017. As the LBMA press release at the time stated:

“The physical holdings of precious metals held in the London vaults underpin the gross daily trading and net clearing in London. The net clearing is undertaken by the members of the London Precious Metals Clearing Limited (LPMCL).”

Although in both cases the data reported lacks any granularity and are just rolled up numbers, the two sets of statistics are useful in that they highlight the clear contradiction that exists between the huge volumes of fractionally-backed paper trading in the London Gold Market, and the relatively small quantities of underlying physical gold that sit in the gold vaults of the same institutions engaged in this ‘gold’ trading, quantities which are even smaller when Bank of England and ETF gold holdings are excluded.

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Courtesy of JB.

Jim

The Reasons To Hold Precious Metals Continue To Increase – J. Johnson’s Latest
October 3, 2018

Good Wednesday Morning Folks,

One day, the precious metals will be allowed to have several days of positive movement in a row, but for now, the algos will not allow that to happen as we see the trade in Gold down $1.40 after yesterday’s $15 rally with the trade now at $1,205.60 inside the early morning trading range between $1,212.30 and $1,205. Silver is still positive but being forced lower with its trade at $14.735, up 3.2 cents with the high at $14.855 and yes, of course, the current price is right beside its low, thank you London. The US Dollars trade continues its rally with the current value at 95.25, up 11 points within a range between 95.26 and 94.885.  Venezuela’s Gold price is now at 298,539,800, gaining 2,112,400 Bolivar the last 24 hours. Silver’s trade under the same currency is now at 3,655,744 gaining 29,822 Bolivar. Commodity traders are salivating here because the leverage in the commodity contracts (100 ounce contract for Gold and 5,000 ounces per contract for Silver) are spectacular! Which is why the banks have to control the prices. What if we are, right now, at the beginning of the Bolivar drop and the Au/Ag rally but under the US Dollar? Oh boy, the heart beats truly quicken with this thought.

October Silver’s delivery demands increased with the Open Interest count now at 82 obligations for physical AG increasing the number by 3 with a volume of 9 so far in the early morning trade sometime way before 6am pst. Silver’s overall OI continues to flounder with the count dropping 721 overnighters with the total now at 200,245.   

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Courtesy of JB.

Jim

Cotton Says Feinstein Will Be Investigated Over Ford Letter
September 30, 2018

Sen. Tom Cotton (R-Ark.) asserted on Sunday that Sen. Dianne Feinstein (D-Calif.) will face an investigation over her handling of a letter from Christine Blasey Ford in which she alleged Supreme Court nominee Brett Kavanaugh sexually assaulted her decades ago.

Appearing on CBS’s “Face the Nation,” Cotton disputed the legitimacy of Feinstein’s claim that she did not disclose Ford’s letter to Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) because Ford had asked it remain private.

“They have betrayed her. They pointed her to lawyers who lied to her and did not tell her that the committee staff was willing to go to California to interview her. Now all of that is water under the bridge,” Cotton said.

“Those lawyers are going to face a D.C. bar investigation into their misconduct,” he continued. “Dianne Feinstein and her staff is going to face an investigation for why they leaked that.”

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Posted by & filed under Jim's Mailbox.

Jim / Bill,

You absolutely have to see this!

According to BofA/ML there are currently 536 “zombie” companies in the OECD out of a total of 4,600. For context, there were 626 “zombies” in Q2:2009, at the peak of the Great Recession.

If the world economy is doing so great, why is the number of zombie companies rising so precipitously? Where is that number going when the next recession comes and operating margins take a plunge? What will be the impact of rising interest rates and weaker currencies?

Mathematically, there is only one way this is going to end.

CIGA Rose

 

 

 

 

 

 

 

 

 

 

 

 

 

Jim,

Looks like back to basics as we talked about on Saturday.

Dave

Poland Becomes First EU Member to Buy Gold This Century
October 1, 2018

Central Bank Gold Buying Hits Highest Level in Six Years

– Central banks have emerged as  some of the biggest buyers of gold this year as reported by the Financial Times

– Poland added to its gold reserves last month, buying more than seven tons of gold, which followed its purchase of two tons in July

– Poland’s gold buying appears to be the first purchase by a European Union member this century

– Central banks bought a total of 264 metric tons this year to reach the highest level in six years, according to analysts at Macquarie

– It suggests “gold’s appeal to central banks might be widening,” Macquarie said

via FT:

Central banks have emerged as some of the biggest buyers of gold this year, with purchases hitting their highest level in six years, according to analysts at Macquarie.

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As only Hal Turner can deliver.

JB

Kavanaugh Smear Campaign Directly Coordinated By A U.S. Senator And 3 Media Outlets
October 1, 2018

Internal Emails Turned Over To FBI Show the Smear Campaign Against Brett Kavanaugh Was Pre-Planned And Coordinated By A Senator And Major News Outlets.

A **major** news organization, trying to cover itself during the new FBI Investigation into Judge Brett Kavanaugh, has turned over to the FBI email exchanges between one of their Reporters and a sitting U.S. Senator.

The news organization revealed emails from the Senator which instructed media outlets “. . . to push multiple stories but not all at once.”  At least one of the emails said “We need these all spread out for maximum impact to delay his nomination and reclaim the seats needed to outlast the administration.”

The allegations against Kavanaugh were to be “staggered out to trigger public opinion calling for an FBI investigation” when one was not needed because the senators receiving the allegations knew they were already faked/not credible. It was a coordinated smear campaign between a United States Senator, 3 major newspapers, and a news network, to allegedly “criminally obstruct” the operation of the Judiciary Committee and of government operations.

Fearing being criminally charged for a Conspiracy to leak confidential US Senate Information, the news organization and its Reporter SOUGHT — and were GRANTED — Immunity!

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Posted by & filed under Jim's Mailbox.

Jim/Bill,

This is what Saturday’s talk was all about, back to basics.

Dave

Look At How Well Gold Has Retained Its Value From 1,000 Years Ago
September 27, 2018

By Simon Black

. . .

Day-to-day, month-to-month, and year-to-year, the price of gold can fluctuate inexplicably.

But over the long term, whether you’re comparing loaves of bread, home prices, or government tax revenue, it REALLY holds its value.

This is one of the things that makes gold such an excellent hedge against political uncertainty, macroeconomic challenges, financial crises, inflation, etc.

Said another way, gold is great insurance policy for all the “I don’t knows.”

Global debt, for example, recently hit an unfathomable level at nearly $250 TRILLION.

Total US national debt is $21.5 trillion; that exceeds 100% of US GDP, and it’s growing rapidly.

Uncle Sam is burning through cash so quickly that even the Treasury Department expects trillion+ dollar annual budget deficits from now on.

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Courtesy of Dave.

Jim

Paul Craig Roberts: Where Does Our Attention Belong – Kavanaugh Or Yemen?
September 29, 2018

Authored by Paul Craig Roberts,

There are reports that the Washington-initiated and militarily-supported Saudi Arabian war against Yemen have a starving Yemeni population eating leaves.

The Saudis, with Washington’s GPS support, continue to target school buses, massacring children as an element of the terror assault against the population, trying to break Yemeni resistance by murdering children on school buses. Washington continues to supply the Saudis with the weapons to target school buses and the diplomatic support to protect the criminal Saudi regime from war crimes charges.

The European cowards turn their heads. Even Russia is silent. Putin’s “partnership” with the criminal state of Saudi Arabia is more important.

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Jim/Bill,

There was a time, in my earlier days, when news items like this would send the market into a tailspin and gold to new heights.

Yet nothing ever came of them because it all boiled down to hype.

Alas, we are in an era of “the boy who cried wolf”, also known as complacency….the fertilizer for gold.

See the source image

Because when reality hits, the panic will commence.

 

 

 

 

 

CIGA Wolfgang Rech

Iran Warns Saudis Of “Red Lines” And Threatens US Bases “Will Not Be Safe”
September 28, 2018

Iran has issued a number of threats on Friday following official charges made by leaders in Tehran that Saudi Arabia and the UAE funded a terrorist attack on a military parade in a southwest district last Saturday which killed 25 people, including members of the elite Iran’s Revolutionary Guards (IRGC).

Iranian military officials declared “red lines” against the two Gulf countries, threatening war, while in a separate statement a senior cleric said US regional bases will not be safe if “America does anything wrong”.

“If America does anything wrong, their bases around Iran would not remain secure,” Ayatollah Mohammadali Movahedi Kermani was quoted as saying by Mizan news agency while leading Friday prayers in Tehran.

And simultaneously the Fars news agency quoted Brigadier General Hossein Salami, deputy head of the IRGC, as saying in reference to the Saudis and Emirates: “If you cross our red lines, we will surely cross yours. You know the storm the Iranian nation can create.”

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Jim/Bill,

This is the Truth Bomb of all time!

Dave

The 17th Anniversary: 9/11 Family Members, Technical Experts Stand Tall for Truth and Justice at U.S. Capitol
September 27, 2018

The AE911Truth team recently returned from an inspiring series of events we held on September 11, 2018, in the heart of the nation’s capital.

We were joined by a handful of eloquent and moving speakers — including British 9/11 family member Matt Campbell — and by dozens of dedicated activists from the Washington, D.C., area. The latter are fortunate to be stationed where they can speak their message face-to-face with elected officials who’ve failed, for 17 long years, to properly investigate the crimes at the World Trade Center.

This is the story of how we came together to remember the nearly 3,000 people who were murdered that day and to reassert the worldwide demand for 9/11 truth and justice.

Morning at the White House

Our first action of the day was at 10:00 AM outside the White House, led by our intrepid operations manager, Andrew Steele. Why the White House? Because Donald Trump — then candidate Trump — promised on February 15, 2016, that under his watch we would “find out who really knocked down the World Trade Center.”

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Because the memes keep coming and it seems everyone is a Republican now…There seems to be no defense for the game the standing Dems have been caught doing anywhere on social media.

JB

 

 

 

 

 

 

 

This is very, very interesting!

GG

WATCH: Trump Hints $1.8 BILLION Obama Paid to Iran for Nuke Deal Was Ransom For ‘Something Else’; Trump Channels Thomas Paine’s Upcoming Deep State Tell-All Book
September 30, 2018

President Trump on Saturday hinted the pallets of cash the United States paid to Iran — some $1.8 Billion — during the Obama administration might not have been to secure the nuclear deal at all.

Trump’s comments came during a rally in West Virgina on Saturday night. He said the cash payment to Iran could have been a ransom for “something else.”

Thomas Paine labeled the same payment ransom on Wedbesday in a promo video for his upcoming book “Paine: How We Dismantled the FBI In Our Pajamas.” The book comes out on Oct. 29.

Here is that Tweet.

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I still hear that voice of hers, whereby she pretended to cry — it sounded like a sheep! Very artificial.

GG

HUGE! Christine Ford Published 2008 Article on Self-Hypnosis Used to Retrieve and “Create Artificial Situations”
October 1, 2018

by Jim Hoft

hristine Ford has not turned over her therapist’s notes to the Senate regarding her suppressed memories about Judge Kavanaugh abusing her decades earlier.

This may be because if the memories were revealed through hypnosis they would be “absolutely inadmissible” in the court of law in many states, including New York and Maryland.

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So, so funny! He is part of the weasel club with Rosenstein! Trump can actually be quite funny!

GG

President Trump Shreds Phony Vietnam War Hero Blumenthal at Trade Presser “We Call Him Da Nang Richard” (VIDEO)
October 1, 2018

by Cristina Laila

President Trump took no prisoners Monday afternoon’s historic press conference on trade.

On Monday, President Trump announced a new trade agreement with Canada and Mexico.

The new agreement — the USMCA — will replace NAFTA the former agreement signed by Bill Clinton that resulted in the elimination of millions and millions of US jobs.

As expected, the liberal reporters wanted to ambush President Trump with questions about Kavanaugh rather than stay on topic and questions about the new trade agreement.

After one liberal reporter asked about Kavanaugh, President Trump pivoted to phony Vietnam war hero Senator Richard Blumenthal.

“Look at some of these people asking the questions,o. Look at Blumenthal,” Trump said. “He lied about Vietnam. He didn’t just say hey I went to Vietnam…no no..for 15 years he said he was a war hero.”

“We call him ‘Da Nang Richard,’” Trump said shredding Blumenthal AGAIN.

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Posted by & filed under Jim's Mailbox.

We have been talking about this for weeks, but only now has Zero Hedge discovered the Synthetic Dollar Short.

Courtesy of GG.

Jim

Here’s The Reason Why Dollar Funding Costs Are Exploding
September 28, 2018

With the market’s attention yesterday focused on the historic Kavanaugh hearing, it is understandable that the biggest markets story slipped by largely unnoticed: as we noted yesterday morning, that was the sudden spike wider in various dollar basis swaps (i.e. funding costs), amid what appeared to be a widespread, dollar shortage.

Specifically, the cost to hedge FX risk moved sharply higher for foreign investors that hedge USD corporate bond holdings by rolling 3-month FX forwards. On an annualized basis the 3-month hedging cost jumped 47bps to 318bps for JPY/USD and 23bps to 323bps for EUR/USD. As shown in the chart below, the one-day move in the 3 month EUR swap was the biggest since the financial crisis:

 

 

 

 

 

 

 

 

 

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This guy Borio is pretty good, next to that the BIS has great insight in the economies.

GG

The Bank of International Settlement’s Claudio Borio, Who Warned About the Crisis, Says the World Economy Is About to Get Very Sick
September 27, 2018

By Yves Smith

Yves here. We’ve written approvingly of Claudio Borio’s work, since he (along with the BIS’ William White) warned central bankers of the dangers of synchronized housing bubble well before the crisis. The then-celebrated Alan Greenspan airily dismissed those concerns.

Another important paper by Borio, Global imbalances and the financial crisis: Link or no link? hasn’t had the impact it should have. Borio and co-author Piti Disyatat decisively debunked the saving glut theory, which former Fed chair Ben Bernanke has pushed (and sadly probably even believes) as the explanation for the crisis. That theory, conveniently enough, exculpates central bankers of blame for the financial meltdown.

The big shortcoming with that paper, is that Borio and Disyatat wrote it in a very defensive manner, which makes it hard for laypeople to read. Our Andrew Dittmer translated it from Economese into Layspeak.

By Marshall Auerback, a market analyst and commentator. Produced by the Independent Media Institute

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Posted by & filed under Jim's Mailbox.

Jim,

You and Bill warned about trade wars!

Dave

Trade Wars Could Collapse US Car Sales And Slash 715K Jobs: It Would Trigger A “Downward Cycle”
September 27, 2018

The most significant and dangerous risks stem from policymaking. And on top of the list is, of course, the protectionist crusade of the Trump administration to disrupt the post–World War II global economic order the US was instrumental in building.

 

 

 

 

 

 

 

 

 

 

The impact of President Trump’s escalating trade war with China is already being felt, auto experts warn, and not in a good way.

Retaliation by China to tariffs already in place have made some American auto exports uncompetitive, and could collapse US auto sales by 2 million vehicles per year, resulting in the loss of up to 715,000 American jobs and a devastating hit of as much as $62 billion to the US GDP.

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Jim told us over a year ago, the US was over playing its hand using SWIFT, as a weapon, when it did!

Dave

‘We Can’t Bear Any More’: US Pressure Makes Brussels Look For SWIFT Alternatives, Max Otte Says
September 27, 2018

Washington’s aggressive policy of sanctions makes it highly necessary for Brussels to find working solutions to protect European countries against the US’ unpredictable steps, top German economist and professor Max Otte says.

“The US has put a lot pressure on various issues and it has used the sanctions weapon and the economics weapon ever more aggressively even against the European companies, against Swiss companies, and this has put a lot of tensions on European companies, especially since the financial crisis,” the economist and independent investment manager told RT.

“This is too much, we have to go our own way, and we have to strike a new balance, so that might be the turning point right now, but we will only see with hindsight,” Otte said.

Earlier this week, European Union foreign affairs chief Federica Mogherini said the remaining signatories to the Iran nuclear deal – the UK, France, Germany, Russia, China, and the EU – cooperated to create a new “special purpose vehicle” (SPV) to do business with the Islamic Republic without sending money through SWIFT, the global financial clearinghouse.

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Posted by & filed under Jim's Mailbox.

Jim,

I was reading MLQ’s post, on your site, about the cost of everything rising.

Posted September 24th, 2018 at 9:26 AM (CST) by Jim Sinclair & filed under Jim’s Mailbox.

Dear Jim,

Everything else which can be purchased, food, clothing, goods and services, etc are all demanding more currency. Only precious metals are falling in price???

This got me thinking.

WHAT HAS gone higher?

-Groceries

-Gas

-Tobacco products

-Rents

-Home prices

-Insurance costs (homeowners, auto, life, etc.)

-Utilities (gas, electric, garbage removal, water, etc.)

-Cable TV and phone service

-Cell phones (iPhones now over $1,000)

WHAT HASN’T?

Precious metals

Commodities (copper, iron, nickel, etc.)

Seems to be 2 common denominators here.

What are they?

1)                       THE WHAT HASN’T:  An encroaching recessionary tidal wave on a global scale.

2)                       THE WHAT HAS:  A debasement of fiat currency, requiring greater amounts to purchase “stuff”!

CIGA Wolfgang Rech

Posted by & filed under Jim's Mailbox.

From our friend Dan at DK Analytics.

Bill

DK Analytics, Post #47: With Rising Interest Rates, If You Must Buy, Purchase “Value” Vs. “Growth” Stocks — And Then Some
September 20, 2018

A historical interest rate perspective — the US & the world have never been so indebted in both relative to GDP and in absolute terms, yet look at our interest rates:

 

 

 

 

 

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Jim,

World War III is but minutes away and MSM gives it no coverage, all we get is fake, 30 year old sex stories.

Dave

Russian MoD: S-400 data shows Israeli F-16 hid behind Russian Il-20 to avoid Syrian missile (VIDEO)
September 24, 2018

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Judicial Watch continues to expose it all.

JB

 

Confirmed!

JB

 

 

 

 

 

 

 

 

 

Courtesy of CIGA David.

Jim

 

 

 

 

 

 

 

 

Courtesy of Dave.

Jim

Professional Wrestling and the Media
by Jeff Thomas

As a boy, I was quite non-violent, but I confess to having been fascinated with professional wrestling. For one hour, every Saturday morning, I’d watch Yukon Eric, Haystack Calhoun and Killer Kowalski attack each other in the ring in what was called, “professional wrestling.”

Of course, even as a boy, it was evident that it was a sham. Some wrestlers played the role of angry bullies; others were practically cartoon characters. The threats each made to the other before the match, the silly outfits, the absurd holds and body slams – it was clearly phony.

And yet, each Saturday, my friends would say, “Okay, maybe some of it’s phony, but did you see that guy bleedin’? That was real!”

Were my friends as gullible as that? Well not by nature, possibly, but, if they’d accepted that televised wrestling were totally phony, it would have lost all its excitement. Viewers would grow bored with it and cease to watch it. And, of course, it was so compelling – seeing two tough guys dramatically fighting it out in the ring.

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Courtesy of Dave.

Jim

Signs of the Gold Apocalypse: M&A and Fund Extinction
September 24, 2018

Tom Luongo

For bear markets to truly end investor sentiment has to get to a point where they would rather walk on broken glass than buy that asset or asset class.  We’re reaching that point in the precious metals market.

In conjunction with that we also have to see arrogance on the part of short-sellers convinced that all rallies will be sold, keeping a lid on prices.  It doesn’t matter if buyers come in at higher prices or above significant technical support levels, they will push because they become convinced this is a one-way trade.

We see this in the government bond markets as well.  In traderspeak it’s called the [Insert Head of Central Bank Here] Put.  The Greenspan Put begat the Bernanke Put which morphed into the Yellen Put.

Over the past few months we’ve seen sign after sign that the gold and silver markets are nearing the end of their bear markets.  These are signs of extreme distress.  The first I’ve already mentioned, record speculative short positions among futures traders.

Then there was the re-balancing of Vanguard’s $2.3 billion Gold and Precious Metals fund into the Global Capital Cycles Fund, trimming exposure to precious metals to 25% of AUM — Assets Under Management.

And now we’re seeing the M&A (Mergers and Acquisitions) phase of the bear market.  Where companies begin merging to shave costs after having already cut back on production to preserve cash flow.

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Jim/Bill,

This is YUUUUUGE as Trump would say.

 

 

 

 

 

Another nail in the coffin of the Dollar.

And it’s all our own doing.  You can only push people so far.

Once the tipping point has been reached, the Dollar will tank, and the massive Dollar long positions will be liquidated, adding fuel to the fire

We us a dangerous situation.

CIGA Wolfgang Rech

Europe Unveils “Special Purpose Vehicle” To Bypass SWIFT, Jeopardizing Dollar’s Reserve Status

September 26, 2018

In a stunning vote of “no confidence” in the US monopoly over global payment infrastructure, one month ago Germany’s foreign minister Heiko Maas called for the creation of a new payments system independent of the US that would allow Brussels to be independent in its financial operations from Washington and as a means of rescuing the nuclear deal between Iran and the west.

Writing in the German daily Handelsblatt, Maas said “Europe should not allow the US to act over our heads and at our expense. For that reason it’s essential that we strengthen European autonomy by establishing payment channels that are independent of the US, creating a European Monetary Fund and building up an independent Swift system,” he wrote.

Maas said it was vital for Europe to stick with the Iran deal. “Every day the agreement continues to exist is better than the highly explosive crisis that otherwise threatens the Middle East,” he said, with the unspoken message was even clearer: Europe no longer wants to be a vassal state to US monopoly over global payments, and will now aggressively pursue its own “SWIFT” network that is not subservient to Washington’s every whim.

Many discounted the proposal as being far too aggressive: after all, a direct assault on SWIFT, and Washington, would be seen by the rest of the world as clear mutiny against a US-dominated global regime, and could potentially spark a crisis of confidence in the reserve status of the dollar, resulting in unpredictable, and dire, consequences.

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