Posts Categorized: Jim’s Mailbox

Posted by & filed under Jim's Mailbox.

…a sign of the times Wolfgang!

Jim/Bill,

Not only is JC Penny selling used clothing, but Macy’s has jumped on board!

Need any more signs of a recession?

Food lines, perhaps?

Oh, wait…. we already have them.

They’re called “Food Stamps”.

 

 

 

 

 

Perhaps now is a good time for the Salvation Army to go public with a stock offering,

CIGA Wolfgang Rech

Jcpenney Halves Losses, Will Begin Selling Used Clothing
August 15, 2019

Shares of J.C. Penney surged after the ailing department store cut its quarterly losses in half and announced that it would begin selling used clothing to staunch fading sales.

Retailers have been searching for ways to get people back into its stores in the decade since the global economic downturn altered consumer behavior, a period that has run parallel with the ascent of Amazon.com.

Among the worst hit has been J.C. Penney, a company that traces its roots back to 1902 and just received a delisting warning from the New York Stock Exchange because its shares have fallen below $1.

On Thursday, the Plano, Texas, company said it would be partnering with thredUP, a resale website where people can buy and sell clothes online. J.C. Penney will open threadUP shop in 30 stores soon.

“We are not simply running a business – we are rebuilding a business,” said CEO Jill Soltau said in a prepared statement. “We are making a difference and today, I feel more confident than ever that we will reinvigorate and rejuvenate this great company to sustainable, profitable growth.”

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This could be a very real “what if” Wolfgang.
Bill

Jim/Bill,

What if……….one day the East says “you want our products?  Pay in gold.”
“The recent increase in gold prices may be set to continue on the strength of a global push for de-dollarization…
Countries increasingly hostile to the US and dollar hegemony, such as Russia and China, are searching for alternatives to the dollar including gold.”
The ensuing global scramble for gold will be unprecedented.
Remember, you can’t print gold.
CIGA Wolfgang Rech

China Curbs Private Gold Imports As It Adds 10 More Tons To Its Own Hoard
August 14, 2019

China continues to escalate its capital controls with headlines today from Reuters that Chinese authorities have curbed private gold imports since May as the trade war escalated in a move that could be aimed at curbing outflows of dollars and bolstering its yuan.

According to sources, China’s gold imports are down 300-500 tonnes, with around $15-$25 billion, since May.

 

 

 

 

 

 

 

 

 

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Wolfgang,

We have termed this as “all roads lead to gold”!

Bill

Jim/Bill,

Essentially, this article is about a “Mind Reset”.

Old timers look at gold as an inflation hedge.  Higher prices = higher gold.

Today’s youngin’s take a different view.  Higher prices = less chance of a rate cut = lower gold.

That is the way the lemmings trade, because according to the conventional wisdom, if inflation is higher, then the Fed will be less likely to cut rates. After all, they’re cutting rates because inflation is too low and if inflation comes in hotter, well, then there’s less of a reason for the Fed to cut rates. So paradoxically, higher inflation is seen as being bad for gold. And the reason I’m saying paradoxically is because gold is an inflation hedge. Normally, the more inflation the more you want to buy gold.

In my eyes, it’s a win/win situation.

-If prices of goods soar, make no mistake, there will be a run for the gold. That will never change. Think hyperinflation.

-If rates go negative, gold will provide a safe haven without any “opportunity cost” being missed.

And no one is even talking about the fiat currency destruction underway!  When paper becomes worth less, or better yet worthless, the fireworks will begin.

Eyes will open soon.  But by then, it may be too late or too costly.  Kind of like buying life insurance on your deathbed.

CIGA Wolfgang Rech

Schiff: The World Will Drown In An Ocean Of Inflation; Gold Is Going Ballistic
August 15, 2019

Via SchiffGold.com,

The gold market took a one-two punch on Tuesday as Trump made some concessions in the trade war and inflation numbers came in a bit higher than expected. Peter Schiff talked about it in his latest podcast, saying gold traders still don’t understand the gold rally.

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JB with some humor for us, the only problem is “they” think the public is so stupid this explanation may actually be floated?
Bill

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CIGA Nat checks in with a reminder for us of Howard Buffett’s thoughts on precious metals.
Bill

Bill,

You probably have already seen this, but since you posted the incredibly revealing graph comparing Berkshire Hathaway to Gold,  I thought the Super Irony of Buffett’s Father’s writings on Gold in 1948 when he was a congressman from Nebraska, Juxtaposed to his son Warren’s disingenuous Hypocrisy on the value of PM’s would be of interest to your readers.  Wonder what he’ll do with that 120 billion in cash he’s sitting on.  If he’s smart he’ll listen to his Father’s words and do the same thing with gold he did with silver, except keep it this time, and don’t write derivatives on it. Your readers might find Howard Buffett”s  “Freedom Rests On Gold” fascinating, enlightening, and encouraging.
Best,

Nat

Posted by & filed under Jim's Mailbox.

Which South Park episode is this?
Bill

Bill,
I think it’s a secret Democratic plot to re-elect Trump…
Either that or…
It’s the secret Russian operation called “Let Them Speak”
JB

 

Posted by & filed under Jim's Mailbox.

Jim & Bill,

As I have said to listeners every Saturday, this is the plan!

Dave

This Is The Same Pattern The Fed Followed Before The Great Depression
August 9, 2019

Authored by Brandon Smith via Birch Gold Group,

There is immense confusion surrounding July’s Federal Reserve meeting and the rather insane aftermath that has been spurred on in the trade war. The Fed’s latest rate decision of a mere .25 bps cut was seen as “disappointing”, this was then followed by Jerome Powell’s public statements making it clear that this was only a mid-year “adjustment”, and that it was not the beginning of a rate cutting cycle and certainly not the beginning of renewed QE. This shocked the investment world, which was expecting far more accommodation from the Fed after 7 months of built up expectations that the central bank was about to unleash the stimulus punch bowl again.

The question that very few people are asking, though, is why didn’t they? What is stopping them? Everyone from daytraders to the president wants them to do it, yet they continue to keep liquidity conditions tight. In fact, they even dumped another $36 billion in assets from their balance sheet in July. Why?

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Jim/Bill,

Can’t help but wonder what people are thinking.

“Germany’s yield curve is negative all the way out to 30 years”

https://www.zerohedge.com/news/2019-08-07/german-banks-cutting-nose-spite-face

And many other global debt markets, including the U.S, are currently or expected to go negative.

“With more than $15 trillion in debt trading with a negative yield, there doesn’t seem to be any better alternative to gold,”

https://www.kitco.com/news/2019-08-08/Gold-Silver-Precious-Metals-Daily-News-Briefs.html

That sort of leaves out getting any sort of return in the debt markets.

In fact, you have to PAY to keep your money there.

That, by definition, in NOT an investment.

The stock market appears toppy to say the least, especially with the spectre of global recession hanging overhead, especially with widespread currency wars in vogue and Central Banks losing all control.

 “If Trump’s administration considers intervening in the U.S. dollar to bring it down, expect to see another steep rally in the yellow metal price,” Sayed states.

https://www.kitco.com/news/2019-08-08/Gold-Silver-Precious-Metals-Daily-News-Briefs.html

Gold’s surge is a message:  Central Banks are out of control;

..gold is a measure of faith in central banks that everything is under control.

https://www.zerohedge.com/news/2019-08-08/golds-surge-message-central-banks-are-out-control-not-inflation

Perhaps someone can direct me to alternative that doesn’t guarantee to lose me money?

Aside from precious metals, of course.

This looks like a no brainer if I ever saw one.

CIGA Wolfgang Rech

Posted by & filed under Jim's Mailbox.

Jim/Bill,

This is not a trading event, but a seminal one!

“the bank stated that it sees the U.S. dollar losing its status as the world’s dominant currency, and consequently depreciating in value.”
 
“To us, this makes sense: gold is a stable source of value with thousands of years of trust among humans supporting it,” he said.

All I can say is WOW!  The powers that be are revealing themselves.

CIGA Wolfgang Rech

Ditch the Dollar, Buy Gold and Other Currencies: JP Morgan
August 06, 2019

Editor’s Note: Get caught up in minutes with our speedy summary of today’s must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) – Investors should diversify away from the U.S. dollar and increase their exposure to other major currencies and gold, according to a report from JP Morgan.

In a recent market note, the bank stated that it sees the U.S. dollar losing its status as the world’s dominant currency, and consequently depreciating in value.

“There is nothing to suggest the dollar dominance should remain in perpetuity,” the note said. “In fact, the dominant international currency has changed many times throughout history going back thousands of years as the world’s economic center has shifted.”

JP Morgan attributed the dollar’s decline to China’s emerging role as an economic power, a trend that can be traced back to after the Second World War, as China “has been at the epicenter of [a] recent economic shift driven by the country’s strong growth and commitment to domestic reforms.”

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Posted by & filed under Jim's Mailbox.

Jim/Bill,

This period, the era of global interdependence under the guise of capitalism, will go down in books as the greatest heist in history! Allow me to explain.

Anybody who believes the actions of Central Banks are for the good of the people, needs their head examined.

This is all being done to support the banking community’s balance sheets and profitability.

Case in point……

With interest rates in the U. S. near zero and actually negative across the board in Europe, does anyone see mortgage rates dropping to around 1%? Or credit card interest dropping from the current 15-24% rate? Or home equity rates dropping from the current 6-7%?

Fat chance.

And to boot, now people have to PAY banks to store their money!

That tells you everything.

Now we can look forward to weaker currencies because of lower rates and more importantly, weaker economic growth, possibly leading to massive global recession.

The exorbitant rates being charged by the banks will do nothing to alleviate the financial pressure people are under. Housing will not recuperate, spending will continue to decline, debt will continue its exponential rise.

How could this not happen under these conditions?

Unless there is a trickle down effect from the banks to the populace, nothing will change. Of course, can you blame the banks for not wanting to prevent margin expansion?

Just remember, its all coming out of our pockets.   One day, history will note that this period will mark the greatest robbery of the American public in the history of mankind.

Now all your need is hyperinflation so the 1%, after they have picked our pockets of every last dollar, can pick up assets for fractions of a penny on the dollar. It won’t be long now.

Know the meaning of wealth preservation.

It’s spelled G-O-L-D.

Google it before it’s too late.

CIGA Wolfgang Rech

Entire German Curve Drops Below Zero For First Time Ever
August 2, 2019

Somewhere, Albert Edwards is dancing a jig as the ice age he predicted will grip the world, appears to finally be here.

While global equities are sharply lower today following the end of the US-China trade ceasefire, it’s nothing compared to what is going on in the bond market, where one day after the 10Y US Treasury plunged a whopping 6% to 1.832% – the biggest one day drop since Brexit – to the lowest since the Trump election…

 

 

 

 

 

 

 

 

 

 

 

 

 

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