Posts Categorized: Jim’s Mailbox

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Until someone uses the right words…



Please note the point that is made by Wolfgang as it pertains to gold confiscation arising out of some definition of Sanctions and or Tariff/Currency conflicts. The bullion gold you hold physically in the USA must be USA minted for your peace of mind.



Logical move.  The more the West squeezes, the more it hurts itself.

Better to have gold in your hand than in western banks.

Confiscation based on sanctions could be a consideration.

“If the government wants to carry out operations with the gold that it plans to bring, it would have to be done with allied countries because of the sanctions,” said Tamara Herrera, an economist with Sintesis Financiera.

Venezuela has been exporting gold to Turkey in the last year, a business that has grown as Maduro has built up ties with Turkish President Tayyip Erdogan.

Selling the gold directly from the Bank of England to a foreign buyer would be logistically easier than shipping it, but could also risk running foul of sanctions.

Imagine that…..Turkey is proving more trustworthy than the Bank of England, or the West in general for that matter.

CIGA Wolfgang Rech

Exclusive: Venezuela Seeks To Repatriate $550 Million Of Gold From Britain – Sources
November 5, 2018

CARACAS (Reuters) – Venezuela is seeking to repatriate about $550 million in gold bars from the Bank of England because of fears it could be caught up in international sanctions on the country, two sources with direct knowledge of the effort told Reuters.

Venezuela’s hard currency holdings have dwindled as existing U.S. financial sanctions have effectively blocked President Nicolas Maduro’s government from borrowing on international markets.

The Trump administration on Thursday issued a new round of sanctions banning U.S. citizens from having dealings with anyone involved in “corrupt or deceptive” gold sales from Venezuela, as part of efforts to boost pressure on Maduro.

Maduro’s government is seeking to bring 14 tonnes of gold held in the Bank of England back to Venezuela, according to two public officials with direct knowledge of the operation, who asked not to be identified.



In the world of sudden change politically, this is not impossible at all. This article should read and considered.
The recent problem with Saudi Arabia is a an example of a situation that could start an financial avalanche, which would be the real straw to break the camel’s back.



If Iran, in retaliation against potential oil export sanctions, decides to close the Straits of Hormuz and commandeer oil tankers and bomb mid-east neighbors involved, then you have $400 oil overnight.

Imagine driving to work with gasoline at $20 – $30 per gallon!

What will you do?

“If we achieve a issue that our oil is not exported, the Strait of Hormuz will be mined. Saudi oil tankers will be seized and regional nations will be leveled with Iranian missiles. 

If Iran decides, a one fall of this region’s oil will not be exported and in 90 minutes all Persian Gulf countries will be wrecked. The UAE and Saudi Arabia will be wrecked in 60 minutes. Right after 90 minutes the U.S. will have nothing at all in this country. And we have not even begun with Israel. Beware of the day we go immediately after Israel, as well. That’s why they want us to spherical up our missiles.”

Probable: NO  Possibele YES

CIGA Wolfgang Rech

Iran Releases 3-Minute Video Message Vowing Global Partners Will Help It Beat Sanctions
November 6, 2018

Less than 24 hours after crippling U.S. sanctions went into effect targeting primarily Iran’s energy sector, and hours after SWIFT suspended Iranian banks from accessing the global financial messaging system, succumbing to pressure from the Trump White House, Iran’s Foreign Minister Javad Zarif has published the Islamic Republic’s official statement in response.

In a 3-minute video posted to YouTube and published by official government social media accounts featuring Zarif standing in front of Tehran during what appears to be the early morning hours of Tuesday in Iran, the FM condemned what he called the “absurd, unlawful, and fundamentally flawed” anti-Iran sanctions that went into effect Monday and called out the “hypocritical claims of the Trump administration”. He confirmed that Iran has rejected the White House’s latest demands articulated alongside the sanctions, and declared willingness to do battle against Washington’s economic warfare for the long haul.

FM Zarif said:

    We have weathered difficult times in the face of 40 years of American hostility, relying solely on our own resources. And today we and our partners across the globe will ensure that our people are least effected by this indiscriminate assault in the economic warfare that directly targets the Iranian people.


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“A step towards contract settlement in the currency of the trading partner’s, not the USD, is a big step backwards for the dollar.”

Courtesy of JB.


Turkey Seeks to Trade in National Currencies With Russia, China, Iran
November 4, 2018

Turkish Foreign Minister Mevlut Cavusoglu’s recent remarks echoed President Recep Tayyip Erdogan’s earlier call to put an end to the dollar’s domination and begin trading in national currencies.

Delivering an opening speech at the 18th session of the D-8 Council of Foreign Ministers in Antalya, Turkish Foreign Minister Mevlut Cavusoglu announced that Ankara was looking to engage in trade with Russia, China and Iran using national currencies.

“We are experiencing a period of trade wars. The best response against this would be using our local currencies in trade. Turkey is preparing to do trade in local currencies with countries such as China, Russia, Iran and Ukraine. We also continue such negotiations with other countries,” he said.

Cavusoglu also stated that it was possible to implement such a plan within the D-8 Organization for Economic Cooperation, also known as the Developing-8, which includes eight emerging economies from the Islamic world – Bangladesh, Turkey, Pakistan, Indonesia, Iran, Malaysia, Egypt and Nigeria.


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I hope you will read this. You need to be informed in order to make informed what they do and what their children are exposed to in the use of cell phones and other electronics.

A forty-nine minute read worth your time.


The Full Story On Emfs: Research, Dangers, And How To Protect Yourself
April 9, 2018

In today’s technology-filled world, we are surrounded by electromagnetic fields (EMFs), invisible energy fields that affect us up to 24 hours a day. With the growth of wireless technologies, there are more questions every day, with the main one being: Are they safe?

While the wireless companies and the Federal Communications Commission (FCC) claim they are, there are more independent studies coming out confirming these fields carry severe health complications for society, as well as harm the environment. Moreover, further digging uncovers how corrupt the FCC is, and that the organization gave up its power to protect the people against EMFs a long time ago.

Since the wireless industry’s growth has not stopped but sped up, it is time to arm ourselves with the knowledge to protect our families.

What we know today is that the World Health Organization (WHO) has classified EMFs as “group 2 carcinogenic: a possible carcinogen to humans,” based on studies that link cellphone use to brain cancer. Some scientists say this is not enough and urge WHO to change EMFs to a “group 1: carcinogenic to humans.”




Here are some notes from Saturdays talk.


The Taliban Is Stronger Now Than At Any Time Since Afghanistan War Began In 2001
November 1, 2018

Afghan security forces’ control of the capital Kabul has slipped in recent months as it also suffers record-level casualties fighting against the Taliban, a watchdog reported.

Resolute Support, the US-led NATO mission in Afghanistan, released figures on Wednesday that showed Afghan forces controlled or influenced 55.5 percent of the capital.

The figure is down 0.7 percent from the previous quarter, according to the US Special Inspector General for Afghanistan Reconstruction (SIGAR), and marks the lowest level since records were first kept in November 2015.

SIGAR added that a full 12 percent of Kabul’s districts were under Taliban control or influence, with 32 percent considered “contested”.

Last year, US President Donald Trump unveilled a new Afghan war strategy that recommitted thousands of troops there and scrapped any timeline for a withdrawal.



Jim and Bill,

As you said on Saturday, bankruptcy is the only way out.

Ernest Hemingway once wrote, “How did you go bankrupt? Two ways. Gradually, then suddenly.”


Who Really Built America’s Massive Pyramid Of Debt?
November 1, 2018

Ernest Hemingway once wrote, “How did you go bankrupt? Two ways. Gradually, then suddenly.”, a website that provides visualizations about money, recently published a new report that shows a unique perspective, breaking down debt into the deficits of each U.S. President has added throughout history.

Hemingway’s warning looks strikingly similar when it comes to the U.S. national debt, which now stands at a whopping $21 trillion.

When President Trump was elected, the National Debt Clock at 1133 Sixth Ave., New York, NY, where it has flashed sobering stats on America’s indebtedness from the Durst Organization-owned office tower since 2004, was quickly removed.

Now, one must check Twitter @NationalDebt for daily sobering tweets about the debt. And, as of October 29, the U.S. national debt officially stood at $21,694,906,926,249.

    $21,694,906,926,249.19 (-) #NationalDebt

    — National Debt Tweets (@NationalDebt) October 29, 2018



The U.S. “Cannot Win Militarily” In Afghanistan, Says Top Commander In Shocking Interview
November 3, 2018

Historians of the now seventeen-year old U.S. war in Afghanistan will take note of this past week when the newly-appointed American general in charge of US and NATO operations in the country made a bombshell, historic admission. He conceded that the United States cannot win in Afghanistan.

Speaking to NBC News last week, Gen. Austin Scott Miller made his first public statements after taking charge of American operations, and shocked with his frank assessment that that the Afghan war cannot be won militarily and peace will only be achieved through direct engagement and negotiations with the Taliban — the very terror group which US forces sought to defeat when it first invaded in 2001.

“This is not going to be won militarily,” Gen. Miller said. “This is going to a political solution.”

Miller explained to NBC:

    My assessment is the Taliban also realizes they cannot win militarily. So if you realize you can’t win militarily at some point, fighting is just, people start asking why. So you do not necessarily wait us out, but I think now is the time to start working through the political piece of this conflict.




You have said this many times…


East Trusts In Physical Gold While West Prefers ‘Mindless Optimism’ – Claudio Grass To RT
November 3, 2018

The latest data from the World Gold Council (WGC) shows that central banks in Eastern Europe and Asia significantly boosted their gold holdings. The regulators purchased 148 metric tons of gold in the third quarter of 2018.

The figure indicates an increase of 22 percent against the same period last year, while some $6 billion dollars were spent on the precious metal.  Russia, Turkey, Kazakhstan, India, as well as Poland and Hungary were the leader among gold net buyers.

The reasons pushing Russia, Turkey and other countries facing US sanctions to buy more gold seem clear. But why are other countries bolstering their gold reserves and why do they find it necessary to diversify their holdings? RT talked to Claudio Grass, an independent precious metal advisory based out in Switzerland to find out why emerging economies are so active in stockpiling gold bullion.

RT: For years, Russia, China, India as well as many Asian countries have been stockpiling gold. More recently, countries like Poland and Hungary have begun to increase national gold reserves. What’s behind the move?


I can only wish I had written this!


George Roof: Presidents I’ve Known-

by George Roof, Chief Master Sergeant, USAF (Retired)

Interesting Google Search on His Name

 http://www.truthorfiction. com/george-roof-presidents- ive-known/

George Roof: Presidents I’ve Known-Correct Attribution!

Retired Air Force Master Sgt. George Roof has penned a viral political commentary titled “President’s I’ve Known.”

Because I am a “lifer” in the military, I’ve seen the impact of a president more than many of you can imagine.  I enlisted with LBJ and saw just what a Democrat clusterflock was all about.  I went to Vietnam and saw how we were constantly and incessantly bombarded with micromanagement from Washington that got thousands of military people killed.  I sometimes wonder if I’ll get to heaven, but if I go to hell, I’m sure I’ll still be a few hundred floors above that bastard Robert McNamara , LBJ, John Kerry, Jane Fonda, and yes, even the “hero” John McCain.

After Johnson “abdicated” rather than having his ass waxed, I lived through Nixon who was hawkish but allowed the generals (and there WERE a few real generals back then versus now) run the show.  He was so out of touch that he never knew North Vietnam was about to surrender when the Paris Accord was presented.

Only God could help us after Gerald Ford was beaten by Jimmy Peanuts who’d been funded by Saudi money.  The military was turned into Section 8 and even the Whitehouse suffered the austerity.

Then the light began to shine and Ronald Reagan swept into the fray.  He not only loved the country and the military, they loved him back.  Esprit d’corps was off the scale during his presidency.  The Liberals were slowly turning into socialists, however, and about this time all the draft dodgers of the 1960’s who’d been given amnesty by Jimmy Peanuts were turning out college graduates with degrees in socialism.


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Hiring for what?

Heh, heh, heh.

I wonder who they’re hiring?

Factory Orders plunge yet hiring surges?

See the source image

Must be the demand for servers for Dollar meals at McDonalds.

CIGA Wolfgang Rech

Factory Orders Growth Slows In September As War Spending Plunges
November 2, 2018

Amid significant revisions, September’s factory order growth slowed from +2.6% MoM in August to +0.7% MoM as it seems the pre-tariff surge is over…

Year-over-year growth in factory orders also slowed notably but remains solid…



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Something’s going on.

Something wicked this way comes.

It’s not what we see that should concern us…..

it’s what we don’t see.

‘Curiously, Fed Governor Lael Brainard said she plans to vote against proposals, arguing they would raise “the risk that American taxpayers again will be on the hook” to bail out banks.

“I see little benefit to the institutions or the system from the proposed reduction in core resilience that could justify the increased risk to financial stability and the taxpayer,” Brainard says in prepared remarks.

Her caution is warranted in light of the recent earnings shock unveiled by Bank OZK which unveiled a deeply distressed commercial real estate portfolio, which sent its stock plunging and prompted questions whether banks are covering up deterioration in some of their CRE holdings.’

It’s not out of the goodness of their heart that the FED will be embarking on an easing of capital requirements.


CIGA Wolfgang Rech

Fed To Ease Liquidity Requirements For Regional Banks As Brainard Warns Of More Bailouts
October 31, 2018

On Wednesday the Federal Reserve is set to vote on proposals that would further ease capital requirements for banks with assets of $700 billion or lower, expanding on Trump’s promise to deregulate Wall Street.

The biggest benefits will come to banks with between $100 billion and $250 billion of assets – or the bulk of regional banks – who would no longer have to adhere to liquidity coverage ratio and proposed net stable funding ratio, according to prepared remarks by Fed Vice Chairman of Supervision Randal Quarles. Firms between $100 billion and $250 billion would also face stress tests every two years, instead of annually

“A reduction of this magnitude is appropriate because most U.S. banking firms in this group are not engaged in complex activities and have more stable funding than systemic banks given their relatively traditional business models,” said Quarles.

At the same time, Non-Wall Street banks that have more than $250 billion of assets would move to a “calibrated” liquidity coverage ratio that is in the range of 70% to 85% of full LCR, Bloomberg notes.

Meanwhile, large banks will generally see little benefits from today’s deregulation: Quarles said that large bank holding companies now have about $1.3 trillion of capital, and the Fed proposals would reduce that by only $8 billion.

Curiously, Fed Governor Lael Brainard said she plans to vote against proposals, arguing they would raise “the risk that American taxpayers again will be on the hook” to bail out banks.




This proverb comes to mind.


‘Day-Trading’ Trump Says “Today Looks Good For Stock Market”
October 31, 2018

While Presidents have traditionally shied away from commenting too much on the stock market, President Trump has been ‘unusual’ in his focus on the arbitrary measure of America’s success (or failure).

Having been quite for much of the month – as US equity markets collapse most since the financial crisis – Yesterday’s dead cat bounce along with today’s extension…




Look around you, what do you see?  It is happening now right before your eyes and you still question the strategy?




I think I need you to talk me down again. In my office I am officially considered crazy for liking gold. So much so that the complex risk manager called me about my personal gold positions. Do you see anything on your radar that is close to change this trade? I thought the FANGS finally cracking would do it but so far no change. I hope the wait is worth it. Because we deserve it!



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Courtesy of CIGA Gary.






Yes. The is crazy. Crazy like a fox.

We all know that “perception is reality.”

If the masses believe something, then the trend will go their way.

We see it stocks and bonds.

You also have it in economics. It’s called MOPE.

Perhaps the true economic and monetary figures, which we don’t get to see, are indicating a huge rise in inflationary pressures.

Perhaps the chickens have already come home to roost, and we are the last to find this out.

In an attempt to ward off another inflationary spiral, you could have the Fed intervening with higher rates, without telling us the true nature of their actions.

Wolfgang Rech

Ron Paul: Trump Is Right, The Fed Is Crazy
October 29, 2018

Authored by Ron Paul via The Ron Paul Institute for Peace & Prosperity,

President Trump recently called the Federal Reserve’s interest rate hikes crazy. Leaving aside President Trump’s specific complaint, which is likely motivated by the belief that low rates will help him win reelection, he is right that “crazy” is a good way to describe the Federal Reserve.

When not forced to use a government-created currency, individuals have historically chosen to use a precious metal such as gold or silver as money. The reasons include that precious metals are durable and their value tends to remain relatively stable over time. A stable currency ensures that prices accurately convey the true value of goods and services.

A main value of a precious metal is it accurately conveys the true price of money, which is the Interest rate. If the interest rate reflects the manipulation of central bankers and not true market conditions, individuals will be unable to properly allocate resources between savings and current consumption.



Courtesy of JB.


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From our friend Dismal Dave, he understands it is all about credit.


America’s Debt: A Recipe for Disaster
October 30, 2018

Bill Bonner

YOUGHAL, IRELAND – Back in Ireland for a few days, we take up an agreeable routine. We read and write in the morning. In the afternoon, we lay stone, closing the open gable ends of our old barn.

We’ve done stone masonry in France, Argentina, and now here. (There are no stones in the Maryland tidewater.) This is the best.

The stones here are more rectangular and easier to split. The only problem is that we’re working high up on a scaffold. And while the stones are easy to lay, it’s hard to get them up to where we’re working…

When the sun sets, we are worn out… and eager to return to our laptop.

So let’s look at yesterday’s trading…


Time to Worry
October 30, 2018

James Grant

 It took the United States 193 years to accumulate its first trillion dollars of federal debt. We will add that much in the current fiscal year alone.

America’s deteriorating public credit is the cold-button issue of the 2018 midterms. With rare bipartisanship, Democrats and Republicans compete to pretend that the country isn’t going broke. In 1992, the third-party presidential candidate Ross Perot likened the widening gap between federal receipts and federal spending to “the crazy aunt tucked away in the room upstairs nobody talks about.” The old gal’s dottier than ever.

It took the United States 193 years to accumulate its first trillion dollars of federal debt—the gross debt, as it’s called. We will add that much in the current fiscal year alone. All told, the government owes $21.5 trillion, give or take a few careless tens of billions—that works out to $65,885 for each American. It’s the ease of borrowing that drives the growth in federal IOUs.

The remote political cause of this predicament is the ideology of statism. In Washington, this takes the form of tax and tax, spend and spend, elect and elect; on Wall Street, it’s found in too-big-to-fail, a virtually socialized mortgage market, and an overreaching, manipulative central bank.


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Trump is right, it’s time to End the Fed!


Trump Is Right: The Fed Is A Big Problem
October 29, 2018

Authored by Thorstein Polleit via The Mises Institute,

President Donald J. Trump has taken on the Federal Reserve (Fed), saying that Fed chairman Jerome H. Powell is threatening US economic growth by further raising interest rates. Mainstream economists, the financial press and even some politicians react with indignation: the president’s comments undermine the Fed’s political independence, potentially endangering the confidence in the US dollar. Such a public reaction is, at first glance, understandable – as mainstream economists have declared the political independence of the central bank a “golden calf” issue.

Monetary theorists argue that a politically independent central bank is best for the currency and the economy. As a result, most central banks around the world, including the Fed, have been made politically independent. But is this so? Well, if the economy thrives, politicians leave the Fed alone. If the economy stumbles, or if the Fed pursues unpopular measures, it runs the risk that Congress or the president may revise the Federal Reserve At of 1913, stripping it of its power. In fact, the Fed’s monetary policy cannot deviate too much from the Congress’ and the president’s political agenda.

Granted: In good times, the Fed is more or less protected from the demands of political parties. But what about the influence from ‘special interest groups’ such as the banking industry on Fed policymaking? There should hardly be any doubt that the Fed caters, first and foremost, to the needs of commercial and investment banks. As the monopoly producer of the US dollar, it creates – in close cooperation with the banking community – new Greenbacks mostly via credit expansion out of thin air. In this sense, the Fed and private banks represents a cartel.