Posts Categorized: Jim’s Mailbox

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CIGA Werner sends us a chart that needs no commentary at all except to ask what happened since 2010?
Bill

US Equities v Global Equities (ex US)

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Posted by & filed under Jim's Mailbox.

Jim/Bill,

More cash is required to tell us how wrong we are.

JB

Fed Injects $83BN In Liquidity As Market’s Repo Addiction Getting Worse
January 9, 2020

Two days after we reported that a disturbance may be brewing below the surface of the repo market again, after the first oversubscribed term repo in over three weeks, when on Jan 7 the Fed received $41.1BN in submissions for its $35BN two week repo, we got another indication just how strong the market’s addition to the Fed’s easy repo money has become, when moments ago the Fed announced that its latest 2-week term repo operation was also almost oversubscribed, as $34.3BN in securities ($23.3BN in TSYs, $11BN in MBS) were submitted for today’s $35 billion operation, as dealers continue to scramble to the Fed for liquidity which they are no longer using for merely “regulatory” year-end purposes (since it is no longer year-end obviously), but are instead using it to pump markets directly.

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Jim/Bill,

We all know by now the push for fake meat.   As with fake cigarettes (Vaping) and fake sugar (saccharine), it is proving to possibly be more toxic than the product they are replacing.

It is being shown that fake meat is not necessarily healthier than the real thing.

The reason I bring this up is because of the uncanny parallels between fake meat and fake gold.

Fake gold, ie:  Comex futures, ETFs like GLD, etc., do not necessarily represent a safer alternative.  In fact, they may be more toxic than the individual investor realizes.  Unfortunately, there is no FDA to protect the investor from toxic effects (not that they do such a good job anyway).

The one thing that fake gold has over fake meat is this:  UNLIMITED amounts of fake gold can be printed at will.

Real gold has its limits.

‘A partnership of that magnitude would also raise questions about whether Beyond Meat has the production capacity to serve the thousands of McDonald’s locations in North America. Howard, in Wednesday’s research note, said: “It is of note that Beyond Meat may not have enough capacity to fully supply McDonald’s nationwide at present.” ‘

CIGA Wolfgang Rech

Beyond Meat Stock Reverses As This Key Question Hangs Over Hopes For McDonald’s Deal
January 8, 2020

McDonald’s (MCD) on Wednesday said it would expand its test of a Beyond Meat (BYND) plant-based burger in Canada, a small step toward what an analyst said could send Beyond Meat stock on yet another tear higher on epic sales gains in the years ahead, even as questions remain about its ability to meet demand.

The fast-food burger giant said the test expansion, starting Jan. 14, would include 52 restaurants in Southwestern Ontario. The expanded test will last 12 weeks. McDonald’s began the initial Beyond Meat test, for 28 restaurants in the London, Ontario area, in September.

Most of the restaurants that were part of that first test will keep serving the Beyond Meat sandwich, called the P.L.T., or Plant. Lettuce. Tomato. Starting Jan. 14, the P.L.T. will sell for around 5.99 Canadian dollars, or $4.60.

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Bill/Jim,

A supposed party with possible knowledge inside IRGC says that since yesterday evening, 56 IRGC commanders have been arrested by the IRGC’s intelligence organization. I have not confirmed this as I have no reason to do so, so take this as plausible rumor.

This would presume IRGC being cleared of spies at the moment so no Iranian response until spy/spies found. This is believable as they did this about a year ago. One imagines they have much dissent within the ranks.

So if missiles have hit Iraq as you said, then they must feel confident in their cleansing.

By way, Putin was in Syria today.

Early today several” B2 Stealth Bombers departed their facilities at Whiteman Air Force Base. Cannot mention the specific takeoff time. The Callsigns for these aircraft were “Death-(#)”

Also earlier today, a “herd” of C-130 Hercules transport aircraft took off together from the US East Coast.

You no doubt saw that the coalition have started to move to Kuwait. I can only imagine that a departure from Iraq will be a reality, regardless of what is being said. And I still think there are chess pieces in play not visible.

I am more concerned about the impact potential hostilities will have on the markets with bank fallout as the liquidity is not there. On the Monday the 6th the Fed offered offered $76.9 billion in the overnight Repo facilities, while their exposure for the 1st of January was $255billion. This is not going away anytime soon.

As I have told you this is a international crisis of liquidity that has been brewing for a long time overseas and clearly has grown to domestic issues where markets tie together. There is simply not enough liquidity in the system at this time to alter the mess to come as the Fed is trying to fix a domestic problem while it is being played internationally, while the Primary Dealers in the US are more than happy to profit from the cheaper rates the Fed is trying to maintain. Meanwhile Main Street is being clobbered and many jobs are risk as liquidity woes tank companies.

Cheers, Robert

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Jim/Bill,

Like it or not, the game has changed. And, as Jim has said if you can not catch it, you can not kill it.

Dave

Russian Hypersonic Nuclear Weapon That Can Travel 27 Times The Speed Of Sound Is Now Operational
December 27, 2019

It’s official: exactly one year after Putin oversaw the final test of Russia’s most advanced hypersonic weapon, on Friday a the intercontinental weapon that can fly 27 times the speed of sound became operational, Russia’s defense minister reported to President Vladimir Putin, bolstering the country’s unprecedented nuclear strike capability, one which the US has yet to match.

As AP reports, Russia’s Defense Minister Sergei Shoigu informed Putin that the first missile unit equipped with the Avangard hypersonic glide vehicle entered combat duty.

“I congratulate you on this landmark event for the military and the entire nation,” Shoigu said later during a conference call with top military leaders.

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Jim/Bill,

With all the talk about how bad socialism is, I thought this would be a great time to ask this question. With the FED passing out money at near zero % interest rates to prop up the stock market a market which is mostly owned by the 1% , would this not be socialism for the rich?

Dave

Global Stock Markets Gained $17 Trillion In Value In 2019
December 24, 2019

Global stock markets have been on a torrid run in 2019, adding more than $17 trillion in total value, according to Deutsche Bank calculations.

The value of global equities began the year just under $70 trillion but has now surpassed $85 trillion, according to a chart from Deutsche Bank’s Torsten Slok.

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Jim/Bill,

This is a well written piece, I think, worth our readers’ time.

Dave

PEPE ESCOBAR: You Say You Want A (Russian) Revolution?
December 21, 2019

Once in a blue moon an indispensable book comes out making a clear case for sanity in what is now a post-MAD world. That’s the responsibility carried by “The (Real) Revolution in Military Affairs,” by Andrei Martyanov (Clarity Press), arguably the most important book of 2019.

Martyanov is the total package — and he comes with extra special attributes as a top-flight Russian military analyst, born in Baku in those Back in the U.S.S.R. days, living and working in the U.S., and writing and blogging in English.

Right from the start, Martyanov wastes no time destroying not only Fukuyama’s and Huntington’s ravings but especially Graham Allison’s childish and meaningless Thucydides Trap argument — as if the power equation between the U.S. and China in the 21stcentury could be easily interpreted in parallel to Athens and Sparta slouching towards the Peloponnesian War over 2,400 years ago. What next? Xi Jinping as the new Genghis Khan?

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Jim /Bill,

Readers would be wise to remember it was a gold trader, from Turkey, who worked with Iran, to evade US sanctions.

Dave

Turkish Gold Trader Implicates Erdogan In Iran Money Laundering
November 30, 2017

(Reuters) – A Turkish-Iranian gold trader on Thursday told jurors in a New York federal court that Turkish President Recep Tayyip Erdogan authorized a transaction in a scheme to help Iran evade U.S. sanctions.

Reza Zarrab is cooperating with U.S. prosecutors in the criminal trial of a Turkish bank executive accused of helping to launder money for Iran. At the time of the alleged conspiracy, Erdogan was Turkey’s prime minister.

Zarrab said he had learned from Zafer Caglayan, who was Turkey’s economy minister, that Erdogan and then-treasury minister Ali Babacan had authorized two Turkish banks, Ziraat Bank and VakifBank, to move funds for Iran.

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Jim/Bill,

We are giving away our privacy.

Dave

It Seemed Like A Popular Chat App. It’s Secretly A Spy Tool.
December 22, 2019

WASHINGTON — It is billed as an easy and secure way to chat by video or text message with friends and family, even in a country that has restricted popular messaging services like WhatsApp and Skype.

But the service, ToTok, is actually a spying tool, according to American officials familiar with a classified intelligence assessment and a New York Times investigation into the app and its developers. It is used by the government of the United Arab Emirates to try to track every conversation, movement, relationship, appointment, sound and image of those who install it on their phones.

ToTok, introduced only months ago, was downloaded millions of times from the Apple and Google app stores by users throughout the Middle East, Europe, Asia, Africa and North America. While the majority of its users are in the Emirates, ToTok surged to become one of the most downloaded social apps in the United States last week, according to app rankings and App Annie, a research firm.

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Jim / Bill,

They say that a picture is worth a thousand words – in this case it’s more like a hundred ounces.

The Germans seem to have woken up…is this what a bank run looks like?

Merry Christmas and a very happy and peaceful new year!

CIGA Rose

Thanks for the intel and a Merry Christmas to you and yours Rose!

Bill

image

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Jim/Bill,

I brought this subject up on Saturdays talk…I think this is a good read.

Dave

Nordstream Sanctions A Sad Coda To U.S. Foreign Policy
December 21, 2019

The U.S. crossed the Rubicon this week. And I’m not talking about the ridiculous impeachment of President Trump for doing his job.

I’m talking about passing the NDAA with provisions to sanction ‘from hell’ anyone associated with completion of the Nordstream 2 pipeline. The U.S. is now openly dismissive as a matter of law any ally or partner who engages in economic activity it disapproves of.

We do this all the time with countries we consider rivals or who have committed ‘human rights abuses’ or contravened international laws or societal norms.

But this is about a simple commercial transaction. Yes, it has geopolitical implications, but those are secondary. No one will be harmed by Nordstream 2, The real harm is to the U.S.’s ability to bring political pressure on European countries to adopt its anti-Russian policies.

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Jim/Bill,

On Saturday, I brought this subject up. The “Military Industrial Complex” is as strong as ever…and James Corbett does an excellent job explaining it!

Dave

Episode 370 – The Afghanistan Papers Are Establishment Whitewash BS
December 20, 2019

The Afghanistan Papers! The Afghanistan Papers! Everyone is talking about the Afghanistan Papers! These “incredible” documents must be full of “explosive revelations” about the US-led NATO invasion and 18-year presence in Afghanistan, right? That’s what everyone is saying, after all. But what if I were to tell you that this “bombshell” report from The Washington Post isn’t just a Nothingburger, but is actually an establishment whitewash? You better brace yourself, because that’s exactly what I’m going to tell you on this week’s edition of The Corbett Report podcast.

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Jim/Bill,

While the public is distracted by the side show, the real news gets over looked.

Dave

Trump Impeachment… Slapstick Diversion From Reality
December 20, 2019

Fittingly for the jolly season, the House of Representatives’ vote to impeach Trump was more pantomime than serious politics.

“Oh yes, he is!.. Oh no, he isn’t!..” and so it went on for nearly 10 hours of to-and-fro between Democrats and Republicans. Eventually, the finale came when black-clad Speaker of the House Nancy Pelosi hammered the gavel, announcing President had been impeached – only the third-ever in two-and-half centuries of 45 presidents.

It was a foregone conclusion given the Democrat majority in the House. The next step in the impeachment process goes to the Republican controlled Senate next month where Trump will almost certainly be acquitted.

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Jim/Bill,

The media has the public distracted with impeachment so they do not pay attention to what is going on in the real world.

Dave

War is Good for Business and Organized Crime: Afghanistan’s Multibillion Dollar Opium Trade. Rising Heroin Addiction in the US
December 20, 2019

“The Big Reveal for the Washington Post was the release of the Afghanistan Papers. A series of interviews and documents “compiled in secret” and then the subject of a “legal challenge” from the US government. The WaPo baldly calls it: “A secret history of the war”. But there’s nothing here that’s really secret, and very little actual history. What do they tell us? Absolutely nothing, except what we’re supposed to believe.” ( Kit Knightly, December 20, 2019)

What is the unspoken “secret truth” which has not been featured in the Afghanistan Papers?

***

Afghanistan’s opium economy is a multibillion dollar operation which has a direct impact on the surge of heroin addiction in the US.

Despite president Trump’s announced US troop withdrawal, the Afghan opium trade continues to flourish. It is protected by US-NATO occupation forces on behalf of a nexus of powerful financial and criminal interests.

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Jim/Bill,

As we said on Saturday, if this is the best economy ever, why have 15,000 stores closed in the past two years?

Dave

More Than 9,300 Stores Closed Across US in 2019: Report
December 19, 2019

A report found that more than 9,300 stores have closed or are closing across the United States in 2019, including locations operated by Payless, Gymboree, Fred’s, Walgreens, Family Dollar, and many more.

According to a report (pdf) by Coresight Research, which released its year-end report on the closing stores, 5,844 stores closed in 2018. In 2019, 9,302 stores were reported to have been shut down or were going to be shut down, which is a 59 percent increase over 2018.

Payless ShoeSource shut down 2,100 stores, Fred’s shut down 564, Ascena Retail shut down 781, Gymboree shut down 740, Sears closed down 210, and Charlotte Russe shut down 512. Twelve businesses had at least 200 locations shut down in 2019, the research organization said.

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Jim/Bill,

I would recommend all readers watch the short video in this article.

Dave

AT&T Unleashes 5G In 10 More U.S. Cities Despite Warnings, Lawsuits, And Opposition
December 22, 2019

The Federal Communications Commission (FCC) is supposed to protect the public by regulating the telecom industry. Unfortunately, they don’t and haven’t been since long before the Trump administration (see 1, 2).

They’ve become much more dangerous because of the “Race for 5G” which they’re even allowing to be funded with taxpayer dollars (see 1, 2).

Despite lawsuits, opposition, and warnings, they keep forcing its installation. Doctors and scientists insist that 5G is NOT safe and have been requesting a moratorium on installation since 2017.

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