Posts Categorized: Jim’s Mailbox

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Jim/Bill,

First we have GM and their massive strike:

All work has stopped at more than 50 General Motors factories and warehouses in the U.S. More than 48,000 workers are on strike

https://news.yahoo.com/auto-workers-strike-against-general-224731305.html

Now the massive Kaiser Permanente Hospital System going on strike.

Funny how this doesn’t make the headlines.

Are we coming to the end of a 2 decade long moratorium on wage growth?  Are wage pressures beginning to ignite inflationary fires?

CIGA Wolfgang Rech

80,000 Kaiser Workers Plan 7-Day Strike That Will Affect California, 5 Other States
September 16, 2019

The Coalition of Kaiser Permanente Unions announced late Monday their roughly 80,000 workers will walk off their jobs as part of a seven-day strike beginning Oct. 14 in California, five other states and the District of Columbia.

“We believe the only way to ensure our patients get the best care is to take this step,” said Eric Jines, a radiologic technologist at Kaiser Permanente in Los Angeles. “Our goal is to get Kaiser to stop committing unfair labor practices and get back on track as the best place to work and get care. There is no reason for Kaiser to let a strike happen when it has the resources to invest in patients, communities and workers.”

Patients will see picket lines at Kaiser Permanente hospital, medical office buildings and other facilities in California as well as in Colorado, Washington, Oregon, Maryland, Virginia and D.C.

The Coalition of Kaiser Permanente Unions came together in the 1990s as a way to end devastating strikes that threatened to cripple the company and make it less competitive.

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Jim/Bill,

This was brought up on Saturday for listeners.

Dave

Recovered From Russian Servers: 2010, 9/11 And The Impossibility Of Flying Heavy Aircraft Without Training
September 13, 2019

Nila Sagadevan is an aeronautical engineer and a pilot.

There are some who maintain that the mythical 9/11 hijackers, although proven to be too incompetent to fly a little Cessna 172, had acquired the impressive skills that enabled them to fly airliners by training in flight simulators.

What follows is an attempt to bury this myth once and for all, because I’ve heard this ludicrous explanation bandied about, ad nauseam, on the Internet and the TV networks—invariably by people who know nothing substantive about flight simulators, flying, or even airplanes.

A common misconception non-pilots have about simulators is how “easy” it is to operate them. They are indeed relatively easy to operate if the objective is to make a few lazy turns and frolic about in the “open sky”. But if the intent is to execute any kind of a maneuver with even the least bit of precision, the task immediately becomes quite daunting. And if the aim is to navigate to a specific geographic location hundreds of miles away while flying at over 500 MPH, 30,000 feet above the ground the challenges become virtually impossible for an untrained pilot.

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Jim/Bill,

Mr. Dimon is correct.  Hedge yourself.

“Preparing for an era of zero rates in the U.S. is part of the “normal course” of risk management, the CEO said.”

Because it may be coming…..free money globally!

And we all know there will be the Devil to pay!

Nothing, but nothing, is ever free.   A concept foreign to most.

Furthermore, we now have a culture embedded with false values.

“Some businesses would see no impact from zero rates, “

As with Student Loans (where the government is seeking to forgive them, at the expense of those who struggled to pay their way),

zero rates will benefit the excessive debtor, at the expense of the frugal saver.

The wrong people are being rewarded.

Some businesses would see no impact from zero rates,

CIGA Wolfgang Rech

There is nothing “normal” about zero interest rates Wolfgang…

Bill

JPMorgan CEO Jamie Dimon: Potential For Zero Rates ‘Obviously’ A Concern
September 11, 2019

JPMorgan Chase & Co. (NYSE: JPM) CEO Jamie Dimon downplayed the likelihood of interest rates hitting zero, but the bank executive is taking steps to prepare for it, CNBC reported Tuesday. 

What Happened

Dimon said Tuesday at a conference in New York he doesn’t believe the U.S. will join other countries worldwide with negative or zero interest rates, according to CNBC. But the bank executive is “thinking about how to be prepared” if this occurs and said it will “obviously” be a problem.

Some businesses would see no impact from zero rates, although there are others that would see their margins diminish — and there is “very little” that can be done in that case, CNBC quoted Dimon as saying.

The 10-year yield dipped as low as 1.44% in August and moved higher to 1.69% Tuesday. In contrast, benchmark bonds in developed economies like Germany come with a negative yield, CNBC said. 

Why It’s Important

Even a veteran bank executive like Dimon was caught by surprise with the Federal Reserve’s move to lower interest rates, Fox Business reported.

Dimon said at the conference he believed rates would be “heading up, not down” in 2019.

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Jim/Bill,

If Central Banks are scrambling for gold at any cost, shouldn’t everyone be?

“Price is not the determining factor in central bank buying—

When central banks are “buying as heavily as they are, it provides cover and a rationale for other central banks to do the same.”

They smell a massive currency war in the air and are diligently preparing for the aftermath.

“The moves are due to concerns about the outlook for currencies, including the dollar and the euro, says Mark O’Byrne, research director at GoldCore in Dublin.  

O’Byrne added that the risk of the trade war descending into a currency war may also be feeding central bank diversification into gold.”

When there is no where else left to turn, people will realize the true value of gold!

CIGA Wolfgang Rech

 Why Russian And Chinese Central Banks Will Keep Buying Gold
September 13, 2019

Emerging markets have beefed up gold holdings, undeterred by prices near their highest levels in more than six years, as countries such as Russia and China diversify their foreign-exchange reserves—a trend that is likely to continue.

“Central bank buying is, of course, important to the supply/demand dynamic for the metal, but is much more important in terms of sentiment toward the metal,” says Brien Lundin, editor of Gold Newsletter. When central banks are “buying as heavily as they are, it provides cover and a rationale for other central banks to do the same.”

Russian central bank gold reserves stand at 2,219.2 metric tons, according to the World Gold Council, or WGC, based on the latest data available in September from sources including the International Monetary Fund. China’s holdings are at 1,936.5 metric tons.

Given the latest prices, with the most-active gold futures contract GCZ19, -0.80%  settling at $1,499.50 an ounce on Friday, and about 32,151 troy ounces in one metric ton, the value of Russia’s gold reserves is at roughly $107 billion.

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Jim/Bill,

Liquidity to what end?

“If Draghi gets aggressive on the monetary stimulus, look for something similar to the BOJ’s program: A qualitative quantitative easing (QQE), which would involve purchasing of equities in addition to bonds. If it is QQE then the monthly amount ought to be BIGGER as there are plenty of bank and financial stocks that the ECB could purchase, pumping liquidity into the financial system while supporting bank stock valuations, which have been decimated under negative interest rates.”

Liquidity to help institutions and hedge funds get out of financial stocks before the collapse?

Certainly, in my eyes, supporting financial stocks will do that, but nothing to resolve the economic turmoil Europe ( and the rest of the world ) is undergoing.

The public, again, is having the wool pulled over their eyes.

 

 

 

 

 

 

 

 

 

 

Stupidity represented by politicians

(not looking beyond their noses)

Fear represented by the public

(over reacting to the natural market corrections and cleansing mechanism in capitalism)

Greed represented by the big investment houses (utilizing the political system to their own ends, at the expense of the public)

CIGA Wolfgang Rech

Notes From Underground: The ECB and the Swan Song of Mario Draghi
September 10, 2019

We are coming to the end of Mario Draghi and the “Whatever It Takes” era. Remember, the head of the European Central Bank said he would do whatever it takes to preserve the EURO. This fealty to the currency has resulted in a -40 basis point deposit rate, a massive expansion of the ECB’s balance sheet via sovereign and corporate bond purchases.

The EURO has been weakened since it has been a beloved tool of the carry traders. The negative result has been that European domestic banks have been crushed as lending margins have disappeared and negative rates have resulted in net payments to the ECB from the banks. (Unlike in the United States, where the interest on excess reserves rate has resulted in the FED paying out interest premiums to its deposit-taking institutions.)

Now, we’re going to have to contend with Draghi’s presentation Thursday, his last before Christine Lagarde takes the scepter.

The EUROPEAN SOVEREIGN DEBT markets have been pricing out an uber-dovish Draghi as BUNDS, OATS and BTPs have all been in corrective mode. The consensus seems to be that the ECB will cut the deposit rate to NEGATIVE 50 BASIS POINTS while embarking on a new, open-ended QE plan of 25 billion euros per month.

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Bill,

Who does the CFTC think they should respond to if not a Representative?

JB

GATA is like a dog on the mailman’s leg!

Bill

Congressman Keeps Pressing Treasury, CFTC About Gold Market Rigging
September 10, 2019

Dear Friend of GATA and Gold:

U.S. Rep. Alex X. Mooney, R-West Virginia, is continuing his efforts to get answers from the U.S. Treasury Department, Federal Reserve, and Commodity Futures Trading Commission about surreptitious interventions by the U.S. government in the financial and commodity markets and particularly the gold and silver markets.

Mooney’s efforts began with letters sent to the Federal Reserve chairman and treasury secretary in April 2018:

http://www.gata.org/node/18210

In July 2018 the Fed and Treasury responded to Mooney but only incompletely, the Fed denying that it was trading in gold but refusing to say whether it is trading in other markets, the Treasury giving a partial denial of gold trading but failing to answer about the government’s policy toward gold:

http://www.gata.org/node/18407

In February this year Mooney asked the CFTC, as GATA already had done, if it has jurisdiction over manipulative trading undertaken by the U.S. government or brokers acting for the U.S. government, or if such manipulative trading is authorized by federal law:

http://www.gata.org/node/18832

The CFTC has never responded to GATA or to Mooney.

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Jim/Bill,

There is a massive substitution of U.S. dollar assets by gold – a strategy which has earned billions of dollars for the Bank of Russia just within several months.”

“Remember, nothing lasts forever…”

CIGA Wolfgang Rech

It is not just Russia Wolfgang!

Bill

Russia, China Continue “Massive Substitution” Of Dollar Assets By Gold
September 9, 2019

“I think it’s clear to everyone now” exclaimed Russian President Vladimir Putin, (and French President Macron recently said so publicly), “that the leading role of the West is ending. I cannot imagine an effective international organization without [Russia], India and China.”

 

 

 

 

 

 

 

 

 

And while most politicians are all talk, in the case of both Russia and China, their actions speak louder than their words.

China‘s foreign exchange reserves jumped to $3.1072 trillion despite the falling yuan and escalating trade war with the US, while raising its gold holdings by nearly 2.89 million troy ounces (99 tons) in nine months. That’s nearly five percent more since the end of last year.

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Jim/Bill,

We have said this from day one about trade wars.

Dave

Trade Wars Are a Fool’s Game
September 8, 2019

According to the great military thinker, Maj. Gen. J.F.C. Fuller, ‘the object of war is not victory. It is to achieve political goals.’

Too bad President Donald Trump does not read books. He has started economic wars against China, Russia, Iran, Cuba and Venezuela without any clear strategic objective beyond inflating his ego as the world’s premier warlord and punishing them for disobedience.

Trump’s wars are economic. They deploy the huge economic and financial might of the United States to steamroll other nations that fail to comply with orders from Washington. Washington’s motto is ‘obey me or else!’ Economic wars are not bloodless. Imperial Germany and the Central Powers were starved into surrender in 1918 by a crushing British naval blockade.

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Bill,

This was brought up on Saturday’s talk.

Dave

9/11 and the American Orwellian Nightmare
September 6, 2019

Next week will mark the 18th anniversary of the 9/11 attacks. Politicians and bureaucrats wasted no time after that carnage to unleash the Surveillance State on average Americans, treating every citizen like a terrorist suspect.   Since the government failed to protect the public, Americans somehow forfeited their constitutional right to privacy. Despite heroic efforts by former NSA staffer Edward Snowden and a host of activists and freedom fighters, the government continues ravaging American privacy.

Two weeks after the 9/11 attacks, Deputy Assistant Attorney General John Yoo sent a secret memo to the Bush White House declaring that the Constitution’s prohibition on unreasonable searches was null and void: “If the government’s heightened interest in self-defense justifies the use of deadly force, then it also certainly would justify warrantless searches.” Yoo is best known for writing a harebrained memo on why presidents can order torture but he also helped sanctify the wholesale demolition of privacy.

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Bill,

You and I have been called Conspiracy nuts for years because we did not believe the official 9-11 story. It looks like we were right all along. Do not hold your breath waiting for MSM to cover this story.

Dave

Fire Did Not Cause 3rd Tower’s Collapse on 9/11, New Study Finds
September 4, 2019

“Information Clearing House” – On September 11, 2001, at 5:20 PM, the 47-story World Trade Center Building 7 collapsed into its footprint, falling more than 100 feet at the rate of gravity for 2.5 seconds of its seven-second destruction.

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Jim/Bill,

I brought this story up last Saturday. Here is the article for listeners!

Dave

Breaking News: Dr Tim Ball Defeats Michael Mann’s Climate Lawsuit!
August 23, 2019

Supreme Court of British Columbia dismisses Dr Michael Mann’s defamation lawsuit versus Canadian skeptic climatologist, Dr Tim Ball. Full legal costs are awarded to Dr Ball, the defendant in the case.

The Canadian court issued it’s final ruling in favor of the Dismissal motion that was filed in May 2019 by Dr Tim Ball’s libel lawyers.

The plaintiff Mann’s “hockey stick” graph, first published in 1998, was featured prominently in the U.N. 2001 climate report. The graph showed an “unprecedented” spike in global average temperature in the 20th Century after about 500 years of stability.

Skeptics have long claimed Mann’s graph was fraudulent.

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