Posts Categorized: Jim’s Mailbox

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Jim/Bill,

I was making this point during our talk, on Saturday.

Dave

Capitalism on Life Support…Time for a Cure
April 24, 2020

The Covid-19 pandemic is unleashing obscene bailouts of Western industries and companies, as well as lifelines for billionaire business magnates.

It is grotesque that millions of workers are being laid off by corporations which are in turn receiving taxpayer funds. Many of these corporations have stashed trillions of dollars away in tax havens and have contributed zero to the public treasury. Yet they are being bailed out due to shutdowns in the economy over the Covid-19 crisis.

Why aren’t the banks and corporations being forced by governments to pay for their workers on sick leave or in lockdown? It’s because the governments are bought and paid-for servants of the top one per cent. Some political leaders are the embodiment of the one per cent, like Donald Trump and senior members of the U.S. Congress.

The biggest orgy of funny money is seen in the U.S. where the Trump administration and Congress have approved the printing of trillions of dollars to prop up corporations and banks. Meanwhile crumbs are being thrown at millions of workers and their families.

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Jim/Bill,

With the way the world is printing money what do people think the next couple of years will bring?

Dave

Since Inception, The Euro Has Devalued 85% Against Gold

April 27, 2020

Technically, the euro was launched on January 1, 1999, although euro notes and coins started circulating in January of 2002.

2020-04-26_11-17-54

The first gold price recorded in 1999 was €7,879 euros per Kg – or €7.88 euros per gram (we’ll use euros per gram as the gold price in the remainder of this article). By now, the gold price has crossed €51 euros per gram. A new all-time high.

2020-04-26_11-18-33

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CIGA Werner checks in with a very interesting inflation adjusted chart.

Bill

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Werner with historical hyperinflation numbers. With all the current central bank printing, the past looks to be prologue and a new category “the world” may enter this list of shame!

Bill

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Jim/Bill,

Food for thought.

Dave

‘The Food Supply Chain Is Breaking.’ Tyson Foods Warns Of Meat Shortage As Plants Close Due To COVID-19
April 26, 2020

Tyson Foods, one of the U.S.’s biggest meat processors, didn’t mince words in a full page New York Times spread that ran Sunday, in which they warned, “the food supply chain is breaking.”

“As pork, beef and chicken plants are being forced to close, even for short periods of time, millions of pounds of meat will disappear from the supply chain,” John Tyson, Chairman of the Board of Tyson Foods, wrote in a letter published as an advertisement. “As a result, there will be limited supply of our products available in grocery stores until we are able to reopen our facilities that are currently closed.”

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Posted by & filed under Jim's Mailbox.

CIGA Werner checks in with some history for us.
Bill

“The greatest currency of all time. The solidus coin under Constantine The Great weighed about 4.5 grams and lasted just over 700 years with no devaluation.”
 
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Posted by & filed under Jim's Mailbox.

JB,

And from whence will the funds come to pay for it all?

Your pal,

Jim

US Energy Secretary Dan Brouillette announces he has been authorized to expand the Strategic Petroleum Reserves to 1 billion barrels.
April 22, 2020

@ChanelRion

#BREAKING: US Energy Secretary Dan Brouillette announces he has been authorized to expand the Strategic Petroleum Reserves to 1 billion barrels.
Brouillette to meet with Congress today.
Current US oil reserve levels are at 713.5 million barrels.@OANN

Bill,
Who’d a thunk it…? 
CIGA Ron
Just one sentence?
Bill

Screen Shot 2020-04-22 at 2.44.19 PM

Jim,

You said retirees would work ’till they die…they are the most endangered species on the planet.

Dave

McConnell Says He Favors Allowing States To Declare Bankruptcy
April 23, 2020

Senate Majority Leader Mitch McConnell said Wednesday he favors allowing states struggling with high public employee pension costs amid the burdens of the pandemic response to declare bankruptcy rather than giving them a federal bailout.

“I would certainly be in favor of allowing states to use the bankruptcy route,” he said Wednesday in a response to a question on the syndicated Hugh Hewitt radio show. “It’s saved some cities, and there’s no good reason for it not to be available.”

The host cited California, Illinois and Connecticut as states that had given too much to public employee unions, and McConnell said he was reluctant to take on more debt for any rescue.

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Posted by & filed under Jim's Mailbox.

Jim/Bill,

Any one looking for a V shaped recovery better think again.

Dave

States Are in a Quandary as Taxes Evaporate and Virus Spending Soars
April 15, 2020

The ballooning costs of the coronavirus pandemic have put an unexpected strain on the finances of states, which are hurriedly diverting funds from elsewhere to fight the outbreak even as the economic shutdown squeezes their main source of revenue — taxes.

States provide most of America’s public health, education and policing services, and a lot of its highways, mass transit systems and waterworks. Now, sales taxes — the biggest source of revenue for most states — have fallen off a cliff as business activity grinds to a halt and consumers stay home.

Personal income taxes, usually states’ second-biggest revenue source, started falling in March, when millions lost their paychecks and tax withholdings stopped. April usually brings a big slug of income-tax money, but this year the filing deadlines have been postponed until July.

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Jim/Bill,

We have entered uncharted territory.

Dave

2019 to 2032.

Jim

Oil Price Collapse Delivers a Loud Warning
April 21, 2020

“Biggest” or “fastest” declines in history are becoming routine characterizations in business media of everything from stocks to unemployment claims to U.S. Treasury yields and now to commodity prices. You’d have to go back to the 1930s and the Great Depression to find as many similar references.

And there was one other key characteristic that defined the early 1930s and now: unprecedented wealth inequality that had been manufactured by Wall Street running an institutionalized wealth transfer system that culminated in a stock market crash that erased 90 percent of the stock market’s value from 1929 to 1932.

The late MIT economist, Lester Thurow, explained some three decades ago what happens when wealth is concentrated in too few hands:

“Depression is seen as a product of systematic tendencies for the distribution of wealth to become concentrated among a few. When this happens, demand eventually sags relative to supply and long cyclical downturns commence…

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Jim/Bill,
Video of Wuhan, China
If you’re an idiot like me, when you heard about Covid-19 almost decimating an unknown place called Wuhan, China, you probably dismissed it as some little  dump in Asia where they eat bats for dinner.
Dave

Posted by & filed under Jim's Mailbox.

Bill,

Follow the yellow brick road.

Happy Easter to you and to yours.

Regards,

Larry F.

Looks pretty symmetric to us Larry!

Bill

graph

Jim /Bill,

File under “You were warned”.

Dave

WeWork Has Stopped Paying Rent On Multiple Locations
April 8, 2020

Amid asset sales, boardroom battles, and seemingly endless litigation, WeWork has decided to jump on the “well, why should we have to pay according to a signed contract when no one else is” bandwagon and is reportedly skipping rent payments on numerous properties.

Amid an effort to aggressively cut costs as the economic downturn crushes any revenues, The Wall Street Journal reports, according to people briefed on the matter, that WeWork has yet to mail in its April rent check at numerous properties while it tries to renegotiate leases. (Quick aside – WeWork mails in its rent-checks?)

“WeWork believes in the long-term prospects of our locations and our relationships with landlords across the world,” a WeWork spokesperson said in a statement.

“Rather than implementing a companywide policy on rent payments, we are individually reaching out to our more than 600 global landlord partners to work in good faith towards finding asset-specific solutions that benefit all parties involved.”

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Jim/Bill,

You were way ahead on this call…Hats off to you!!

Dave

$20,000 Gold Price: Franco Nevada Chairman Makes The Case
April 8, 2020

Gold prices should skyrocket to much higher levels, even $20,000 in two to five years’ time, as gold reaches a price level close to the level of the Dow Jones Industrial Index, this according to Pierre Lassonde, chairman of Franco Nevada.

“When I look at where we are today, the money creation will take time to [money] into people’s hands. I look at supply chain disruption, I think we’re looking at a two to five year period and I do believe that we will see, if not one to one [in the Dow/gold ratio], then very close to one to one,” Lassonde told Kitco News.

Gold prices have historically seen periods when the levels are close to, if not equal to, the Dow index.

“I just don’t know if the Dow will still be 23,000 or if it will still be $16,000, and even if [the ratio] is two to one, all I’m trying to point out is that the gold price will be materially higher than what it is today,” he said.

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Posted by & filed under Jim's Mailbox.

From our friend CIGA Chuck.

Bill

unnamed

Does this give you a warm and fuzzy feeling?

Courtesy of JB.

Bill

U.S. Stock Clearinghouse Suspends Certificate Repatriation
April 2, 2020

Dear Friend of GATA and Gold:

The Depository Trust & Clearing Corp., which stores most stock certificates and settles most securities transactions in the United States, has suspended all securities repatriation services since March 23 and announced on March 28 that these services will remain suspended until at least April 6. The suspension was attributed to difficulties arising from the virus epidemic sweeping the world.

So anyone who wants to take possession of stock certificates or transfer them to the possession of someone else is out of luck for the time being.

This is a situation that gold advocate and mining entrepreneur Jim Sinclair of JSMineset.com often warned against years ago.

The DTCC says all the rest of its services remain operational, though in recent years some investors and corporate officials have complained that those services include facilitating naked short selling.

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40% of global production? COMEX would have you believe this is bearish for silver?

Courtesy of GG.

Bill

GLOBAL SILVER SUPPLY COLLAPSE ON ITS WAY: Mexico Mining Suspension To Hit Silver Supply
April 2, 2020

Due to Mexico’s Ministry of Health issuing an Executive Order for the immediate suspension of non-essential activities until April 30th, the mining industry in the country has now come to an abrupt halt. The mining industry was hoping for an exemption to the Executive Order, but was not granted one. So, companies are now suspending production and putting their mines on care and maintenance.

According to the article on the Mining Journal website, Mexico mining suspension to hit silver supply:

Under the government decree, non-essential activities are to be suspended immediately until April 30.

The decision is expected to have a significant impact on the supply of silver at a time when demand for silver coins is high. Mexico is the world’s largest silver producer at some 23% of world production and produced more than 200 million ounces in 2019, up from 196.6 million ounces in 2018.

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