Posts Categorized: Jim’s Mailbox

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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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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Courtesy of Dave.

Jim

OCC Report: JPmorgan Chase And Citibank Control 76 Percent Of All Precious Metals Contracts At 5,362 Federally-Insured Banks
June 24, 2019

By Pam Martens and Russ Martens

As of March 31 of this year, there were 5,362 Federally-insured commercial banks and savings associations in the United States. Just two of these banks, JPMorgan Chase NA and Citibank NA control 75.7 percent of all precious metals derivatives contracts held by all of the 5,362 Federally-insured banks and savings associations. This finding comes from a report released last week by the regulator of national banks, the Office of the Comptroller of the Currency (OCC). (See Table 9 in the Appendix of the OCC report.)

Commercial banks are supposed to be making safe and sound business loans to keep the U.S. economy humming, creating good-paying jobs and making America competitive around the world. But according to the latest OCC report, of the $38.57 billion held in precious metals derivative contracts by all Federally-insured banks and savings associations in the U.S., JPMorgan Chase Bank NA held $17.509 billion and Citibank NA held $11.691 billion. JPMorgan Chase is currently under a criminal probe by the U.S. Department of Justice involving precious metals trades.

Equally concerning, the trading of precious metals derivative contracts by Federally-insured banks has grown exponentially since 2001. At that time it represented less than $5 billion. During the financial crisis in 2008 and 2009, precious metals derivative contracts at the banks were less than $15 billion. They have more than doubled since that time.

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Jim,

Had readers listened to you and Bill on Saturdays talks they would have known this was coming.

Dave

“The Dollar Is Becoming Toxic” – Russian Intel Chief Slams “Aggressive, Unpredictable” US Behavior
June 19, 2019

With the latest TIC data showing China following Russia’s lead and reducing its US Treasury exposure (to two-year lows), as it increases its gold reserves (for six straight months), the unipolar US hegemon faces an ugly trend among the ‘rest of the world’ attempting to de-dollarize, as Sergey Naryshkin,  director of the Russian Foreign Intelligence Service, calls the US dollar is an anachronism of the modern world economy.

 

 

 

 

 

 

 

 

 

Countries across the globe, including Russia, China, India, and others, have been working to diversify their foreign reserves away from the greenback.

 

 

 

 

 

 

 

 

 

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Jim,

You said it would it start this June.

Dave

8 Reasons a Huge Gold Mania Is About to Begin
June 17, 2019

Nick GIAMBRUNO

An epic gold bull market is on the menu for 2019.

I’m not talking about a garden-variety cyclical gold bull market, but rather one of the biggest gold manias in history.

This gold mania will be riding the wave of an incredibly powerful trend… the re-monetization of gold.

The last time the international monetary system experienced a paradigm shift of this magnitude was in 1971.

Then, the dollar price of gold skyrocketed over 2,300%.

It shot from $35 per ounce to a high of $850 in 1980. Gold mining stocks did even better.

Today, gold is still bouncing around its lows. Gold mining stocks are still very cheap. I expect returns to be at least as great as they were during the last paradigm shift.

So let’s get right into it, starting with the first four catalysts that will send gold prices higher…

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Jim/Bill,

Gold investors have not only global economic and political hurdles to evaluate and live by,

Trump backed himself into a corner with China, essentially demanding it give the U.S. ultimate say over its fiscal, monetary and trade policy.

They are terms of surrender.

(What audacity, if true!)

but also “Devine Intervention” (Trump and the Fed intervening to keep a lid on gold and silver).

Remember, no one important wants to see gold rise through the cap currently in place. When it does it will be the biggest tell of all that Draghi, Jerome Powell at the Fed and the rest of the central bankers don’t have any answers for what is happening.

 

 

 

 

 

 

You can keep a lid on gold, economic deterioration, interest rates, etc.  for only so long with monetary intervention.  But like the natural flow and buildup of magma under the earth’s surface, at some point the pressure will create a blowout.

You simply cannot defy physics forever.  There must be payback.  The Devil to pay, so to speak.

CIGA Wolfgang Rech

Draghi Punts, Trump Grunts, Gold Bunts
June 19, 2019

Authored by Tom Luongo,

For months now the markets have been in denial that ECB President Mario Draghi has any answers to the Euro-zone’s problems. Today’s statement confirms what anyone with eyes to see has been saying.

There is no Plan B.

Draghi started the year saying he would end his various QE programs and by June he’s not only put them back on the table (New TLTRO in September) but has now opened up the possibility of taking rates lower.

Draghi told an ECB conference in Sintra, Portugal, that “further cuts in policy rates… remain part of our tools.” He added that there was “considerable headroom” to re-start bond purchases, which inject newly created money into the financial system in the hope of boosting lending and economic activity.

Draghi has been exposed as swimming naked, as Warren Buffet would put it.

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Jim/Bill,

I think we covered this several times. Countries, in the end, will have to do what is best for them, not what is best for the USA.

Dave

As China Looms, Australia’s Military Refocuses on Pacific Neighbors
June 11, 2019

By Jamie Tarabay

. . .

Prime Minister Scott Morrison played it down as a “reciprocal visit” and a sign of “the relationship that we have.” National security experts, however, called it a show of force by China and a double-edged reminder of Australia’s longstanding relationship with China and its growing military ambitions.

“No Australian government is willing to risk relations with China by siding too overtly with Washington,” said Hugh White, emeritus professor of strategic studies at the Australian National University. “This has become more and more clear as U.S. rivalry with China has become more overt.”

Mr. White said Australia had waning confidence that the United States — a reduced presence on the global stage under President Trump’s America First policy — would prevail over China in their strategic contest.

“That’s because China is far stronger than any previous rival, and America, especially under President Trump, looks weak and unreliable, despite the tough talk,” said Mr. White, who recently published a book titled “How to Defend Australia.”

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Jim/Bill,

Never seen this before, but we have a Volume of 40 in June Silver, the delivery month, but no purchases or any price posting…I have no explanation for this whatsoever! Keeping watch!

J. Johnson