Posts Categorized: Jim’s Mailbox

Posted by & filed under Jim's Mailbox.

Jim/Bill,

Yra has summarized the impending Dollar decline perfectly.

“I have cautioned for several years that it is not INFLATION that is the impetus for a GOLD rally but investor fears about central banks losing control of monetary policy in a fiat currency world.”

Inflation, as we have all experienced in the past, brings with it significantly higher prices.

But a loss of faith in fiat currency brings hyperinflation, something we have never experienced.

We will witness an impeding tsunami of rising prices in ALL commodities…gold, silver, copper, nickel, and all the others.

What you won’t see anymore is the trite phrase “Keep the Change”.

That “Pot of Gold” is sitting right under your nose.

 

 

 

 

 

 

 

 

Those coins in your pocket will amaze you.

Unlike paper fiat, it’s not economically feasible to remove coins from circulation and replace them.  Even so, their inherent base value will drive them out of circulation.

Remember Gresham’s Law…bad money drives out good.

CIGA Wolfgang Rech

Notes From Underground: Just When It Couldn’t Get More Volatile
June 6, 2019

The above reference is from the wonderful cult movie, Putney’s Swope. The CEO of a major advertising firm has a heart attack during a board meeting and the sycophants don’t realize it as they continue peppering him with questions. When he’s unable to respond they ask, “How Many Syllables, Mario?”

On Thursday, we will listen as the ECB holds its regular post-meeting press conference. You know, the one where President Mario Draghi pretends to answer questions about ECB policy. There will be NO CHANGE, especially since the EURO has recently rallied in response to a sharp drop in U.S. yields.

Also, on Tuesday the Reserve Bank of Australia lowered its overnight cash rate by 25 basis points to 1.25%, citing trade disputes and the increased uncertainty “affecting investment intentions in a number of countries.” The RBA was actually optimistic about the Aussie economy as they noted that employment has been strong and labor force participation improving but they chose to cut rates regardless of some positive domestic forces.

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Notes From Underground: Trump Has Weaponized The Dollar. Do the Longs Know?
June 12, 2019

Some shots were fired last Friday, but it seems that the markets can only hear the siren song of White House tweets. There was an important story from Bloomberg reporter Saleha Mohsin titled, “Trump’s Currency War Plan Puts Treasury and Commerce at Odds.” The article noted that “a Commerce Department proposal to impose countervailing tariffs on countries that it determines have devalued their currencies has alarmed officials at the Treasury Department.”

It appears that President Trump has grown frustrated by Treasury’s failure to name any country as a “currency manipulator.” It has been Treasury’s bailiwick to monitor the foreign exchange interventions of countries who strive to artificially hold down the value of their currencies in an effort gain a competitive advantage versus any G20 country, especially the U.S. (from the Treasury Department perspective).

Switzerland, Canada, the European Union and recently Australia all invoke their currency values as an important variable in setting monetary policy, but the Treasury has failed to label any of them as manipulators and seek retribution. It was Commerce Secretary Wilbur Ross at Davos in January 2018 who said, “And, unfortunately, every single day there are various parties violating the rules and trying to take unfair advantage. So trade wars have been in place for quite a little while; the difference is the US troops are now coming to the ramparts.”

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Posted by & filed under Jim's Mailbox.

Courtesy of Dismal Dave Down Under.

Jim

Could JPMorgan Chase Be Hit with a Fourth Felony Count for Rigging Precious Metals Markets?
June 11, 2019

By Pam Martens and Russ Martens

On September 25, 2013, after spending five years and 7,000 hours using taxpayers’ money investigating the potential rigging of the silver market, the Commodity Futures Trading Commission (CFTC) concluded that “there is not a viable basis to bring an enforcement action with respect to any firm or its employees related to our investigation of silver markets.” The investigation was provoked by multiple complaints asserting the market was rigged.

The CFTC is a Federal regulator that oversees the U.S. commodities markets. The U.S. Department of Justice (DOJ) is also a Federal agency and the only one that can bring a criminal case against firms and individuals who commit conspiracy and fraud in commodity and securities markets. (The Securities and Exchange Commission can bring only civil, not criminal, cases.)

On October 9 of last year, the DOJ used its criminal powers and charged John Edmonds, a former long-time employee of JPMorgan Chase, with one count of commodities fraud and one count of conspiracy to commit wire fraud, commodities fraud, commodities price manipulation and spoofing.

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Jim/Bill,

Soon, the paper price will be irrelevant.

Dave

Indian Gold Demand Surged In April And May
June 11, 2019

Via SchiffGold.com,

After a dip in demand in 2018, it appears Indians are buying gold again.

 

 

 

 

 

 

 

 

 

Anecdotal data seemed to indicate strong demand for the yellow metal in India during the Akshaya Tritiya holiday. Retailers reported sales were up by as much as 25%. As it turns out, demand was indeed strong. Gold imports into India were up 36% year-over-year in May, according to sources cited by Bloomberg.

India imported 105.8 tons of gold in May. That compares with just 77.6 tons a year earlier. Combined shipments of gold into the country during April and May came in at 226.6 tons. That was up about 74% from the same period in 2018.

 

 

 

 

 

 

 

 

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Posted by & filed under Jim's Mailbox.

Jim,

You told listeners this would be the outcome.

Dave

Pepe Escobar: The Unipolar Moment Is Over
June 10, 2019

Authored by Pepe Escobar via ConsortiumNews.com,

The Russia-China strategic partnership, consolidated last week in Russia, has thrown U.S. elites into Supreme Paranoia mode, and they are now holding the whole world hostage…

 

 

 

 

 

 

 

 

 

Something extraordinary began with a short walk in St. Petersburg last Friday.

After a stroll, they took a boat on the Neva River, visited the legendary Aurora cruiser, and dropped in to examine the Renaissance masterpieces at the Hermitage. Cool, calm, collected, all the while it felt like they were mapping the ins and outs of a new, emerging, multipolar world.

Chinese President Xi Jinping was the guest of honor of Russian President Vladimir Putin. It was Xi’s eighth trip to Russia since 2013, when he announced the New Silk Roads, or Belt and Road Initiative (BRI).

First they met in Moscow, signing multiple deals. The most important is a bombshell: a commitment to develop bilateral trade and cross-border payments using the ruble and the yuan, bypassing the U.S. dollar.

Then Xi visited the St. Petersburg International Economic Forum (SPIEF), Russia’s premier business gathering, absolutely essential for anyone to understand the hyper-complex mechanisms inherent in the construction of Eurasian integration. I addressed some of SPIEF’s foremost discussions and round tables here.

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Jim/Bill,

With all gold buying taking place, among nations, it is only a matter of time before the price must move much higher.

Dave

Bullion The Bully: Beijing Answers Trump’s Tariffs With Massive Gold-Buying Spree
June 11, 2019

China’s vast gold stockpile saw another boost in May, marking an ongoing increase for a sixth straight month, according to the latest data published by the People’s Bank of China.

Last month, the central bank raised its bullion reserves to 61.61 million ounces from 61.10 million in the previous month. As of the end of May, the nation’s stockpile was valued at $79.83 billion compared to $78.35 billion a month earlier. In tonnage terms that marks an increase of 15.86 tons, after almost 58 tons of gold were added over the five months through April.

In May, the country’s total foreign exchange reserves, the world’s largest, reportedly edged  0.2 percent, or $6 billion higher, reaching $3.101 trillion. The increase shifted the expectations of analysts polled by Reuters, who projected the reserves to drop by five billion to $3.090 trillion.

The latest boost to Beijing’s gold stash reportedly reflects China’s move towards diversifying its bullion and foreign currency holdings amid the protracted trade dispute with the US.

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Courtesy and authored by Clive Maund.

Jim

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Posted by & filed under Jim's Mailbox.

Jim,

You have told our Saturday listeners this for a year now. I hope they paid attention and took your advice on how to protect them selves. It is here and it is now.

Dave

The Next Stage Of The Engineered Global Economic Reset Has Arrived
June 6, 2019

Authored by Brandon Smith via Alt-Market.com,

When discussing the fact that globalists often deliberately engineer economic crisis events, certain questions inevitably arise. The primary question being “Why would the elites ruin a system that is already working in their favor…?” The answer is in some ways complicated because there are multiple factors that motivate the globalists to do the things they do. However, before we get into explanations we have to understand that this kind of question is rooted in false assumptions, not logic.

The first assumption people make is that that current system is the ideal globalist system – it’s not even close.

When studying globalist literature and white papers, from Aldous Huxley’s Brave New World, to H.G. Wells’ book The New World Order and his little known film Things To Come, to Manly P. Hall’s collection of writings titled ‘The All Seeing Eye’, to Carol Quigley’s Tragedy And Hope, to the Club Of Rome documents, to Zbigniew Brzezinski’s Between Two Ages, to former UN Director Robert Muller’s Good Morning World documents, to Henry Kissinger’s Assembly Of A New World Order, to the IMF and UN’s Agenda 2030, to nearly every document on globalization that is published by the Council on Foreign Relations, we see a rather blatant end goal described.

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Posted by & filed under Jim's Mailbox.

Something very strange is happening.

JB

Global Trade Collapsing To Depression Levels
May 15, 2019

With the trade war between the US and China re-escalating once more, investors are again casting frightened glances at declining global trade volumes, which as Bloomberg writes today, “threaten to upend the global economy’s much-anticipated rebound and could even throw its decade-long expansion into doubt if the conflict spirals out of control.”

“Just as tentative signs appeared that a recovery is taking hold, trade tensions have re-emerged as a credible and significant threat to the business cycle,” said Morgan Stanley’s chief economist, Chetan Ahya, highlighting a “serious impact on corporate confidence” from the tariff feud.

To be sure, even before the latest trade war round, global growth and trade were already suffering, confirmed most recently by last night’s dismal China economic data, which showed industrial output, retail sales and investment all sliding in April by more than economists forecast.

 

 

 

 

 

 

 

 

 

 

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Gold Gold Gold!

JB

Central Banks Are Buying Gold At The Fastest Pace In Six Years
May 15, 2019

Authored by Simon Black via SoveriegnMan.com,

Earlier this month the World Gold Council published its quarterly report– and it shows that central banks and foreign governments from around the world are buying up gold at their fastest pace in six years.

 

 

 

 

 

 

 

 

 

This is pretty big news, and it says a LOT about the future of the dollar.

Remember, central banks and foreign governments hold literally TRILLIONS of dollars of reserves… and traditionally they do this by buying US government debt.

It sounds strange, but to big institutions, banks, etc., US government debt is equivalent to cash. They use it as a form of money.

More importantly, they hold US dollars because that’s the global standard: the US dollar has been the world’s primary international reserve currency for seventy five years.

So US debt is extremely liquid. In fact, the $22 trillion US debt market is the biggest and most liquid market in the world.

But foreign governments have started breaking with the tradition of buying treasuries.

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Posted by & filed under Jim's Mailbox.

Bill,

BOOM!!! someone just bought 50 – 5,000 ounce contracts of Silver for delivery between $15 and $14.88. The last 2 trades were at $14.88. This is done to control the futures prices and is the exact reverse of what should be happening. Draining the Comex is still the play.

Looks like the buyer triggered some selling out in the futures. Right now I see another order for 62 more contracts at $14.735…Someone has figured the game and is taking them on in the physical purchases…

J.J.

Posted by & filed under Jim's Mailbox.

Bill,

I am sure any minute China will back down? Not a chance.

They would lose face at home and that can not happen.

Dave

China’s Wei Threatens ‘Fight To The End’ With US
June 1, 2019

China’s top security official on June 2 articulated an uncompromising defense of his country’s stance on the contested South China Sea and threats to invade Taiwan in an anticipated address at a top security conference in Singapore.

“Building facilities on one’s own territories is not militarization,” Lieutenant General Wei Fenghe said, responding to accusations that China has militarized islands in the sea as a means of taking effective control of what the US and others regard as international waters.

Wei also warned of a “fight to the end” with the US in their escalating trade spat, and a “fight at all costs” for “reunification” with Taiwan, the island nation China considers a renegade province. The US has recently upped its strategic support for the democratically-run nation, much to Beijing’s chagrin.

“No attempts to split China will succeed. Any interference in the Taiwan question is doomed to failure,” said Wei, dressed in his uniform of a general in the People’s Liberation Army (PLA).

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