Posts Categorized: Jim’s Mailbox

Posted by & filed under Jim's Mailbox.

Jim/Bill,

Banking issues slowly creeping into public view.

Certainly most are aware of Deutsche Bank’s $50 trillion derivative exposure and the roughly $6.40 share price target that people say could trigger a panic.  Currently DB is trading $6.88

However, problems don’t necessarily have to be relegated to the majors.

Remember Credit – Anstalt?

 

 

 

 

 

Run Louis (Louis Nathaniel de Rothschild)! Run!

CIGA Wolfgang Rech

PBOC Panics, Floods Market With Liquidity As Interbank Funding Freezes After Baoshang Seizure
May 29, 2019

With China’s bond market continues to be hammered in the aftermath of the government’s surprise seizure of Baoshang  Bank (see “A Big Wake Up Call”: Chinese Bond Market Roiled By First Ever Bank Failure”), the PBOC – whose open market operations had been in dormancy for much of 2019 – finally panicked and on Wednesday injected a whopping net 250 billion yuan ($36 billion) into the financial system via open-market operations, as it fills what traders have dubbed a growing funding gap following the Baoshang failure.

 

 

 

 

 

 

 

 

The consequences of this liquidity flood were instant: China’s overnight repurchase rate, a measure of interbank liquidity, tumbled the most in three weeks, while the benchmark 7-day repo rate also declined.

 

 

 

 

 

 

 

 

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Americans’ Life Savings Wiped Out In Mexican Bank Fraud Scheme
May 29, 2019

A Bloomberg report reveals how a Mexican bank employee directed a retirement fraud scheme at American retirees living in San Miguel de Allende, a city in Mexico’s central highlands.

 

 

 

 

 

 

 

 

 

Monex Casa de Bolsa SA de CV Monex Grupo Financiero has been investigating allegations that an employee stole approximately $40 million from American clients.

Marcela Zavala Taylor, the suspected Monex banker at the center of the fraud, allegedly sent American clients falsified statements that showed their accounts were fully funded, said several of the bank’s clients in a Bloomberg interview.

The fraud was discovered in late December when clients couldn’t retrieve funds from their accounts. Bank officials told clients that $40 million in funds from 158 accounts disappeared.

Bloomberg spoke with several clients who said Monex attempted to reach settlements at a massive discount versus what was stolen from their accounts. Others said the bank asked them to file charges against Zavala.

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Jim/Bill,

This headline says it all…….

Stocks Slammed As Credit Cracks, Retail Routed, Yield Curve Craters

Looking at the news items over the last 24 hours makes you wonder…..is there anybody we aren’t picking a fight with?

CIGA Wolfgang Rech

Russia Slams “Crude Provocation” Nuclear Testing Accusations By US

China Accuses US Of “Naked Economic Terrorism,” Will “Fight Until The End”

Chinese Activists Urge War With US ‘Until Pacific Ocean Splits In Two’ 

Iran’s Oil Exports Plunge To 400,000 Bpd In May

Trump Risks New Front In Trade War As Talks With Europe Falter

US Threatens Europe With “Loss Of Access To US Financial System” Over SWIFT-Evading Iran SPV

US Troops To Be Based In Saudi Arabia, Qatar Against “Iran Threat”

Footage Captures Arms “Rat Line” On “Mysterious Planes” Fueling Libya War 2.0

Posted by & filed under Jim's Mailbox.

Jim,

In the news this week:

https://www.reuters.com/article/uk-britain-sterling/pound-set-to-break-record-losing-streak-vs-euro-may-statement-eyed-idUSKCN1SU0SF

I am not including Brexit news, you can get that anywhere, but the only interesting part for us is probably the pound up after resignation announced but probably not for long.

https://www.cnbc.com/2019/05/24/jp-morgan-slashes-second-quarter-gdp-forecast-to-just-1percent.html

Economists at JPM cut 2nd qtr forecast from 2.5% to 1% and 1% is probably generous.

https://www.washingtonpost.com/opinions/trumps-next-fed-nominee-wants-a-gold-standard-its-an-idea-past-its-time/2019/05/23/81aac8c4-7d8d-11e9-8bb7-0fc796cf2ec0_story.html?utm_term=.f9f5bfbefae9

Shelton wants a gold standard

https://www.cnbc.com/2019/05/23/nearly-25-percent-of-americans-are-going-into-debt-trying-to-pay-for-necessities.html

25% of Americans going into debt for necessities

https://www.coindesk.com/russian-central-bank-to-consider-gold-backed-cryptocurrency

Russia considers gold back cryptocurrency

https://www.cnbc.com/2019/05/23/trump-to-give-16-billion-to-farmers-hurt-by-trade-war-sonny-perdue.html?__source=iosappshare%7Ccom.apple.UIKit.activity.Mail

I think this is just political spin against China.  The farmers aren’t in trouble because of China.  The farmers are in trouble because in March over a million head of cattle were killed from floods.  The cattle which survived can’t be fed because the grasslands are covered by flood mud and there isn’t any grass for grazing.  The fields can’t be planted because of continuing rains and soggy ground.  This has nothing to do with China.  This is BS propaganda.  This has nothing to do with trade wars.  It’s sickening.  These floods are going to be to the coming economic crash what the dust bowl was to the Great Depression.  Never let a disaster go to waste…just use it for a political agenda.

https://www.channelnewsasia.com/news/business/deutsche-bank-ceo-readies-investment-bank-cuts-as-stock-hits-low-11558226

Deutsche Bank going down the gurglar…no surprise here.

https://finance.yahoo.com/news/student-loan-credit-card-delinquincies-144156981.html

US debt at $13.6 trillion.  Higher than in 2008

CIGA K

Posted by & filed under Jim's Mailbox.

The Velocity of Money chart for those that listen to the JSMineSet subscriber audio.

JB

Velocity of M2 Money Stock (M2V)

 

 

 

 

 

 

 

 

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Could declassifation of prime documents cause dehydration?

Jim

I live in the land of dehydration, this is not it…

JB

Watch: Sickly Nadler Passes Out During De Blasio Presser
May 24, 2019

Maybe he’s tired from signing all of those subpoenas.

One day after Nancy Pelosi publicly questioned President Trump’s mental health and suggested that his family should consider an ‘intervention’, Jerry Nadler – the chairman of the Judiciary Committee and point man for various Congressional investigations involving the president, staff from his 2016 campaign, and members of his administration – appeared to pass out during a press conference held by New York City Mayor Bill de Blasio.

Footage shot by NBC New York shows de Blasio stopping a press conference at P.S. 199 in the Upper West Side of Manhattan to come to Nadler’s aid, offering the Congressman water, and remarking that he appeared to be dehydrated.

When de Blasio asked if he was okay, Nadler responded with a faint ‘no’.

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Posted by & filed under Jim's Mailbox.

Courtesy of JB.

Jim

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jim/Bill,

Sending chills down my spine.

Be afraid. Very afraid!

2007 Redux?

“If DB goes under with its massive book of derivatives, other banks would be in the same trouble as DB. Nenner says

This is not a hyped prediction considering the IMF called DB the “most systemically dangerous bank” in the world in 2016. If DB does break $6.40, do we get a daisy chain of default around the world? Nenner says”

When fear grips the market, it will game over.

A new epoch of reality will take hold.  It will be called the “Golden Times”.

CIGA Wolfgang Rech

Nenner: If Deutsche Breaks $6.40 “The World Is In Trouble”
May 22, 2019

Via Greg Hunter’s USAWatchdog.com,

Renowned geopolitical and financial cycle expert Charles Nenner says if there was ever a global canary in the coal mine warning for the financial system, it is Germany’s Deutsche Bank (DB). Late last year, Nenner predicted if DB stock went below $8 a share, “You should be worried.” Recently, DB stock hit all-time lows and now sits around the $7.40 per share level.

 

 

 

 

 

 

 

 

 

Nenner warns, “I see it can hold up to late July, and then it can go to $6.50 (per share)…”

“If it breaks below $6.40, it can go out of business. So, it’s a very serious situation… I think all the markets can have a bounce in a couple of days to the end of July. That’s why DB might hold up, but if it gets below $6.40, the world is in trouble.”

This is not a hyped prediction considering the IMF called DB the “most systemically dangerous bank” in the world in 2016. If DB does break $6.40, do we get a daisy chain of default around the world? Nenner says:

“It is a very dangerous situation. I don’t think DB is the only one. They just got caught. I think if you look at the balance sheets very closely of other banks, especially Europe and Italian banks, you will see a lot of troubling signs also. I don’t think it’s only Deutsche Bank. It’s much more…

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Jim/Bill,

This is quite an eye opening article.

This is getting very, very dicey!  This is no longer about government vs government, but a nationalistic trend taking everyone down with it.

A full blown consumer war getting underway.

And furthermore, it appears that despite all the “good” reports of our economic activity, coming out from government sources, may just be hogwash.

…and will likely lead to a global trade recession or even a depression, which as we showed last week

 

 

 

 

 

 

 

 

 

 

 

 

…may have already started.

CIGA Wolfgang Rech

The Boycott Begins: Chinese Company Orders Employees To “Stop Using American Products, Eating At KFC”
May 22, 2019

In a harbinger of what’s to come as the US-China trade war gets worse by the day, a Chinese company has told all of its employees to boycott American products and halt international travels to the U.S., reported The Epoch Times.

 

 

 

 

 

 

 

 

 

 

Jinggang Motor Vehicle Inspection Station notified all employees last Thursday, May 16 that the use of iPhones, driving in American automobiles, eating at American fast food restaurants, using American household products, and even traveling to the U.S. was forbidden by a new company policy; any employee who violated the new rules would be fired. Here are some excerpts from the notice:

“Employees are prohibited from purchasing or using iPhones; instead, they are recommended to use Chinese domestic brands of cell phones, such as Huawei.

“Employees are not allowed to purchase vehicles made by China-U.S. joint venture automakers. They are recommended to purchase 100 percent Chinese-made vehicles.

“Employees are forbidden to eat at McDonald’s or Kentucky Fried Chicken. They are not allowed to purchase P&G [Proctor and Gamble, a U.S. maker of household products], Amway [U.S. maker of health and beauty products], or any other American brands. Employees must not go to the United States as a tourist.”

The company’s memo was emailed to employees several days after state-run newspaper Global Times published an editorial piece that called on the Chinese public to “fight a people’s war” against the U.S.

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People won’t realize they missed the boat for all the gold in China.

CIGA K

Why China Is the World’s Largest Gold Consumer
May 19, 2019

Gold has long enjoyed deep cultural significance in China, which holds the title for being both the world’s largest gold consumer and its largest producer. Demand for the yellow metal in China looks like it will continue to rise, driven by a combination of increasing levels of wealth, global economic uncertainty and changing central bank policy.

Momentum Drivers

We typically see four key drivers for gold demand in any market: jewelry purchases, industrial use, central bank purchases and retail investment. China’s market is no exception.

Jewelry Sales: Gold plays a strong role in traditional celebrations in China, and is typically gifted at weddings and births, while ornamental gold sales also spike around the Lunar New Year and during Golden Week in October. At a time when gold jewelry sales are static or falling in many markets, they rose by 3 percent in China in 2018 to reach a three-year high of 23.7 million ounces accounting for 30 percent of the world’s total, according to the World Gold Council (WGC). The rising wealth of China’s growing middle class is expected to continue to support this trend going forward.

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The headline here says it all. The underlying question here is the compelling one…If everything in global currencies is as good as we are told, “Why are the Swiss ready to step in?” This is like someone saying “I’m innocent” but saying, “You need to talk to my criminal defense lawyer.” If you are innocent, Why are you represented by a criminal defense lawyer. Are people really this stupid? I guess so.

CIGA K

SNB Is Prepared to Intervene in Currency Markets, Official Says
May 20, 2019

Go inside the global economy with Stephanie Flanders in her new podcast, Stephanomics. Subscribe via Pocket Cast or iTunes.

The Swiss National Bank stands ready to intervene in currency markets if necessary, according to one of its policy makers.

“We’ve always said that we have this approach that we have on the one hand negative interest rates still in place, but we’ve always said that whenever we feel it’s necessary we would be intervening, and that still counts,” Thomas Moser said while attending a conference in Copenhagen on Monday. “So if we feel that there is a need for more interventions we will certainly do it.”

For the past four years, the SNB used a deposit rate of minus 0.75% plus a pledge to use interventions to keep the haven franc in check.

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Posted by & filed under Jim's Mailbox.

Right you are Wolfgang!

Bill

Jim/Bill,

Words from the past come back to remind us of our rights….lest we forget.

The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government – lest it come to dominate our lives and interests.”
-Patrck Henry

When the people fear their government, there is tyranny; when the government fears the people, there is liberty.”

-Thomas Jefferson

Who is restraining who in today’s world?

Who fears who in today’s world?

CIGA Wolfgang Rech

France Threatens Journalists With Jail Time For Exposing Government Lies About Yemen
May 22, 2019

Via Middle East Eye,

France has threatened three French journalists with potential jail time for using secret documents to reveal the country’s involvement in the Yemen civil war.

In a series of reports published in April, investigative journalists from Disclose and Radio France revealed the number of French arms sold to Saudi Arabia and the United Arab Emirates.

The documents, authored by France’s Directorate of Military Intelligence (DSGI), showed that senior French officials had lied about the role of French weapons in the Yemen War.

Following the publication of the reports in April, Disclose’s co-founders Geoffrey Livolsi and Mathias Destal and Radio France journalist Benoît Collombat were asked to attend a hearing at the DSGI headquarters in Paris.

The three journalists refused to reveal their sources after being questioned by the DSGI on the origin of the document, their work and posts on Facebook and Twitter.

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Jim/Bill,

This is dove tails with Wolfgang’s post.

Dave

Vicious Cycle: The Pentagon Creates Tech Giants and Then Buys their Services
May 22, 2019

by T.J. COLES

The US Department of Defense’s bloated budget, along with CIA venture capital, helped to create tech giants, including Amazon, Apple, Facebook, Google and PayPal. The government then contracts those companies to help its military and intelligence operations. In doing so, it makes the tech giants even bigger.

In recent years, the traditional banking, energy and industrial Fortune 500 companies have been losing ground to tech giants like Apple and Facebook. But the technology on which they rely emerged from the taxpayer-funded research and development of bygone decades. The internet started as ARPANET, an invention of Honeywell-Raytheon working under a Department of Defense (DoD) contract. The same satellites that enable modern internet communications also enable US jets to bomb their enemies, as does the GPS that enables online retailers to deliver products with pinpoint accuracy. Apple’s touchscreen technology originated as a US Air Force tool. The same drones that record breath-taking video are modified versions of Reapers and Predators.

Tax-funded DoD research is the backbone of the modern, hi-tech economy. But these technologies are dual-use. The companies that many of us take for granted–including Amazon, Apple, Facebook, Google, Microsoft and PayPal–are connected indirectly and sometimes very directly to the US military-intelligence complex.

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Jim,

The New York Times is called out by Peter Koenig.

Dave

Venezuela In “Misery” – Lies And Deceit By The Media Open Letter To The New York Times
May 19, 2019

Note by The Saker: I normally don’t post open letters, but in this case I made an exception since this latter is also an analysis and because of the importance of this issue.

by Peter Koenig for The Saker Blog

To the Editor in CHIEF

NYT – 18 May 2019

Venezuela’s Collapse Is the Worst Outside of War in Decades, Economists Say

Subtitle:

Butchers have stopped selling meat cuts in favor of offal, fat shavings and cow hooves, the only animal protein many of their customers can afford.

This introduction is accompanied by a picture of a man in rags, pushing a shopping cart through a garbage dump site. You, NYT, say it is in Maracaibo, Venezuela, the man looking for recyclables. The photo could be from anywhere, the same with a picture further down in the text – depicting a young woman nursing a baby in the dark – you say in a typical Venezuelan blackout.

This is a flagrant misrepresentation of what’s going on in Venezuela.

The New York Times is known for selecting photos from places of misery, could be slums from anywhere in the world, and placing them where it is most convenient to propagate a lie story – a story meant to demean a country in the public opinion, a country that the empire wants to subdue by bashing and insulting it – so the public – the braindead western public, notably in the US and Europe, will tolerate or even scream for a “humanitarian invasion” from the friendly US of A.

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Jim,

How many times can the USA get away with bombing a country based on lies?

Dave

Further Evidence US Attacked Syria Based on False Flag
May 19, 2019

By Tony Cartalucci “Information Clearing House” –   Further evidence has emerged indicating that the alleged 2018 Douma, Syria chemical attack was staged by US-backed militants, not the Syrian government.

With the US plotting war from South America to the South China Sea, understanding how US-backed militants staged the attack, allowing the Western media to sell US military intervention to the global public based on a lie – will help guard against similarly staged attacks in the near future.

Recent revelations mean the US not only falsely accused Damascus of having carried out the attack – but launched military strikes against Syria based on an entirely false pretext. To date, the US has categorically failed to produce any convincing evidence backing their original claims.

Conversely, a subsequent investigation carried out by the Organisation for the Prohibition of Chemical Weapons (OPCW) produced damning evidence suggesting a false flag event was carried out by US-backed militants. This included a chlorine gas cylinder found in a militant weapons workshop inspected by OPCW investigators closely matching the two cylinders allegedly used in the 2018 Douma attack itself.

While US-backed militants insisted two gas cylinders were dropped on Douma by government helicopters, the OPCW noted that the alleged craters caused by the cylinders’ impact matched those on nearby buildings clearly caused by high-explosive ordnance.

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Jim/Bill,

Interesting how things are evolving on the foreign policy front.

As we noted previously, the reason for the dramatic market response is that the presidential visit flags policy priorities, and “rare earths have featured in the escalating trade spat between the U.S. and China.” 

We have witnessed, over the past years, the threats by the U.S. imposed upon foreign corporations and governments in terms of the Dollar.

“Do not go along with our self serving foreign policies and ideological beliefs and you will be banned from trading with us, from US Dollar transfers via SWIFT, and from even getting your gold back that’s in storage and safekeeping within our borders.

Well, the implications of such acts are far reaching and enormous.  No longer will the world trust us to honor commitments in international trade, finance, and safety.

There will be a point when alternative suppliers will be sought out and relied upon to the exclusion of U.S. counterparts.

There will be to turning back.

CIGA Wolfgang Rech

Rare-Earth Stocks All Soar “Limit Up” After Xi’s Threat
May 21, 2019

Chinese rare-earth stocks soared overnight for a second day following the implicit trade restrictions (export ban?) threat signaled by Xi Jinping’s visit to JL Mag, a material producer in Jiangxi province.

As Bloomberg notes, China Northern Rare Earth, Shenghe Resources, China Minmetals Rare Earth, and JL MAG Rare-Earth all spiked by the 10% daily limit in mainland trading, extending Monday’s similar gains…

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Posted by & filed under Jim's Mailbox.

People don’t realize that they are voluntarily giving up cash for digital. The less cash in circulation, the easier it will be for TPTB to make us go cashless. If we want to remain autonymous and without transaction records, we need to keep cash in circulation as long as possible. Everything else except for PMs are traceable, trackable and taxable. We all need to be using more cash, not less.

Jim

Jim/Bill,

The number of cash machines around the world fell last year as usage of paper money and coins continues to decline.

I can’t help but believe this is what the government wants.

Nobody really has cash anymore.  And by that, I mean money. We’ve all read articles how the current generation is living paycheck to paycheck and can’t afford to purchase homes anymore.

So, to keep the economy’s head above water, we corral the herd of Millennials, and everyone for that matter, into credit cards and subsequent debt overload.   Just to keep them buying….stuff.

But eventually, it will all come home to roost one day.

CIGA Wolfgang Rech

Number Of ATMs Falls Globally As Cash Continues To Die
May 20, 2019

The number of cash machines around the world fell last year as usage of paper money and coins continues to decline.

New research by banking consultancy RBR claims that the number of ATMs (automated teller machines) declined by 1% to 3.24m in 2018.

The fall comes amid declining usage of cash in developed markets globally. Sweden has already gone cashless and only 30% of transactions in the UK use cash today. Consumer group Which? said this month that the number of free cash machines in the UK declined by 1,700 in the first three months of the year.

Four of the world’s five biggest markets for cash machines registered a drop in numbers last year, RBR said. The number of ATMs fell in China, the USA, Japan, and Brazil.

“While the outcome was the same, each of these markets had its own reasons for the removal of ATMs,” RBR said. “In China, the swift adoption of non-cash payments has contributed to a similarly rapid fall in ATM installations. Branch closures have led to fewer bank ATMs in the USA.”

Growth in the number of ATMs in India, the fifth biggest market, slowed. Between them, China, the USA, Japan, Brazil, and India are home to over half of the world’s ATMs.

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Jim/Bill,

Not for anything, but it’s the concept that bothers me.

Promising to pay the holder in silver, then reneging.

A silver certificate dollar bill is a former circulation of paper currency that allowed for the direct exchange of silver.

Certificates were issued in place of the silver dollars because of the weight of the coins.

In 1963, the House of Representatives passed PL88-36, repealing the Silver Purchase Act and instructing on the retirement of $1 silver certificates. The act was predicated by a prospective shortage of silver bullion

Investors of silver were naturally upset at the passing of this law, which rendered their holdings worthless.

Never, ever trust anyone. Not even the government.

 

 

 

 

 

First they convince you that the paper promises are as good as silver…simply easier to carry around.

Then they say…Sorry Charlie.

CIGA Wolfgang Rech

What Is a Silver Certificate Dollar Bill Worth Today? (SLW, SVM)
May 20, 2019

A silver certificate dollar bill is representative of a unique piece of history. It no longer carries any monetary value as an exchange for silver, yet collectors still seek out the print. Its history dates back to the 1860s, and the certificate is a unique historical artifact representing a time period when the monetary structure of the United States was changing.

Silver-Certificate Dollar Bill

A silver certificate dollar bill is a former circulation of paper currency that allowed for the direct exchange of silver. This representative money allowed for the redemption of silver coins or raw bullion equal to the certificate’s face value. The certificate was used to back U.S. paper currency systems during the 1800s and 1900s. Other countries to have issued silver certificates include Cuba and the Netherlands.

Old Silver Dollar Certificates

The U.S. government began issuing silver certificate dollars in 1878. The certificates were initially issued in response to the Fourth Coinage Act of 1873. Enacted by the 42nd United States Congress, the act abolished the rights of holders of silver bullion to have their holdings converted into legal-tender dollars, ending bimetallism and effectively placing the United States on the gold standard. In 1874, the legal-tender status for silver certificates was removed for debts exceeding $5.

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