Posted at 9:14 AM (CST) by & filed under In The News.

What Can Go Wrong When Everything Is So Wonderfully Controlled?
May 14, 2019

Great and Wonderful Tuesday Morning Folks,   

      Gold is under British pressure this morning with the trade below the Maginot Line at $1,299.60, down $2.20 with the low at $1,296.60 and the high to beat at $1,304.20. Silver, however, is trading higher and at $14.80, close to the high at $14.825 with a low at $14.745. The US Dollar is still seeing some rather large support from all overseas trades with the value pegged at 97.125, up .005 after reaching 97.20 with the low at 97.075. All of this was done way before 5 am pst and the Comex open.   

      Our view of precious metals thru the eyes of a South American in Venezuela now shows Gold at 12,979.76, a huge gain of 148.82 Bolivar overnight with Silver at 147.815 regaining all that was lost yesterday and more. Argentina’s Peso now has Gold pegged at 58,647.33 regaining a ginormous 1,072.67 Peso’s in the overnight with Silver’s gain equaling 11.107 Pesos at the price of 667.841. A friendly reminder here is Gold trades in a 100 troy ounce contract and Silver at 5,000 within the commodity sector. This is done in order to make international trades equal in size. In short, these moves are huge and are going to happen in other currencies as they too, start to fail.   

      The May Silver Deliveries on the Comex now shows a demand of 307 contracts waiting for physical and with a Volume of 1 up on the board so far this morning. This count proves a drop of 16 contracts and with Harvey Organ’s late night data points, proving 13 out of these 16 got delivered as we wait for more demands to reduce the amount of physicals which in turn will either kill the Comex, or force prices higher till more product becomes available. Our proof of manipulation in Silver shows up in the Overall Open Interest and even with yesterday’s Gold price pop, the manipulators added 1,903 more Silver shorts in order to stay the price with the total Overnight Obligations now at 204,018 pieces of paper in a system that is now totally controlled by algos that do not have real price value in mind at all, it’s all about price suppression.    

More…

Posted at 8:37 AM (CST) by & filed under Jim's Mailbox.

Jim,

This is what the public needs to know. I can only hope they watch and learn.

Dave

Video: 5G Apocalypse, The Imminent Dangers
May 10, 2019

What is 5G? We need to know the dangers of this technology.

A full length documentary by Sacha Stone exposing the 5G existential threat to humanity in a way we never imagined possible!

Scientists, environmental groups, medical doctors and citizens around the world are appealing to all governments to halt telecommunications companies’ deployment of 5G (fifth generation) wireless networks, which they call “an experiment on humanity and the environment that is defined as a crime under international law.”

Watch the video below.

More…

 

Jim,

On the weekly talks we have warned a false flag operation could lead to war.

Dave

US Accuses Iran Of Attack On Saudi Tankers
May 14, 2019

Update: Just as everyone with half a frontal lobe had expected, the WSJ reported late on Monday that according to an initial U.S. assessment, “Iran was likely behind the attack” on the two Saudi Arabian oil tankers and two other vessels damaged over the weekend near the Strait of Hormuz, a U.S. official said, a finding that, whether confirmed or not, will certainly inflame military tensions in the Gulf and likely result in a global proxy war that drags in the US, China and Russia. Oh, and that would be the Persian Gulf for those wondering, not the Gulf of Tonkin, which is where another famous False Flag naval incident occurred.

Furthermore, as we predicted would happen on Sunday, this “official assessment”, was the first suggestion by any nation that Iran was responsible for the attack and follows a series of U.S. warnings against “aggression” by Iran or its allies and proxies against military or commercial vessels in the region.  Some more details from the WSJ:

The U.S. official, who declined to be identified, didn’t offer details about what led to the assessment or its implications for a possible U.S. response. The U.S. has said in the past week that it was sending an aircraft carrier, an amphibious assault ship, a bomber task force and an antimissile system to the region after it alleged intelligence showed Iran posed a threat to its troops.

“If they do anything, they will suffer greatly. We’ll see what happens with Iran,” President Trump said while meeting with Hungary’s Prime Minister Viktor Orban at the White House earlier on Monday.

More…

Posted at 1:30 PM (CST) by & filed under Jim's Mailbox.

The author may be anonymous but the numbers are correct.  …COMEX is used to price gold and silver by the brute force of paper.  This game will change overnight when it does!

Bill

Bill/Jim,

Tens of millions of virtual gold ounces, or hundreds of virtual gold tons are traded per day on the Comex, with a purported physical delivery component to them

Yet, not one single ounce has moved inside the 9 separate dealer vaults in about a week. These vaults purportedly hold 7.7 Million ounces of gold, but not one single ounce has moved in about a week (makes sense right).

Today, about 600 tons of purported virtual gold futures were traded, yet the dealers have barely 6 tons in the dealer vaults.

The COT report indicates that the Commercials (“Dealers”) currently have a net short position of 312 virtual gold tons and a gross short position of 1,018 virtual gold tons.

2 of the 9 dealer vaults have not one ounce of dealer gold!

6 of the 9 dealer vaults have not one ton of dealer gold!

Yet, the Comex is the world’s foremost price discovery mechanism for the physical gold price.

Wonderful!

-Anonymous

 

But I thought unemployment was the lowest it’s been since 1969???

Bill

Bill/Jim,

Subject: 102.047 million working age Americans did not have a job in April up 259K from March or 49% of potential working age Americans | FRED

96.223 million working age Americans Not in labor force for April  https://fred.stlouisfed.org/series/LNS15000000

+ 5.824 million working age Americans unemployed for April https://fred.stlouisfed.org/series/UNEMPLOY (when you no longer receive unemployment compensation you are moved to the not in labor force category even though you still don’t have a job and are no longer counted as being unemployed.)

102.047 million working age Americans for April without a job up 259,000 from March.

/ 206.354 million potential working age Americans for April https://fred.stlouisfed.org/series/LFWA64TTUSM647S#0

49% of working age Americans for April without a job.

Posted at 8:51 AM (CST) by & filed under In The News.

Split Tongued Devils at the Helm
May 13, 2019

Good Monday Morning Folks,    

      We start our day off with some red across the board with Gold now at $1,284.70, down $2.70 and up from the low of $1,282.40 with a high at $1,289.20. Silver is leading the dip with its trade at $14.655, down 13.5 cents and right by the low of $14.64 with the high at $14.795. One would think the Dollar would be benefiting from this push but alas, it too is trading down at 97.09, off by 3.5 points in between a high of 97.165 and the low at 97.025. All of this negative trading has already happened, in the land that ignores the (Brexit) vote, just before 5 am PST, and our Comex open.    

      Gold’s price under the Venezuelans massively printed Bolivar now has the metal priced at 12,830.94 Bolivar, a loss of 11.99 with Silver at 146.367, losing .999 Bolivar. The other South American currency under stress, the Argentine Peso, now has Gold priced at 57,574.66 Pesos proving a loss of 612.85 over the weekend with Silver at 656.734 A-Pesos, losing 10.921 of value in what can only be called a damn good buy zone as they try to resuscitate the fiats value. Good luck with that.   

      May Silver Deliveries continue on in orderly fashion with the Demands for physical now at 323 contracts waiting for receipts and with a Volume of 13 posted up on the board so far this morning, proving a swap of 5 obligations during Friday’s trading period.  As we’ve mentioned many times before the only way the precious metals can be controlled is by using paper contracts in order to “stay the price” as the buyers of physical take away as much as they can with the Overall Open Interest count now at 202,115 Overnighters proving an additional 1,464 more pieces of paper where needed for price control.    

More…

Bill Holter’s Commentary

It seems we told you the day after the ’16 election to look up who Judy Shelton was…

Judy Shelton, Trump’s Next Fed Choice, Favors A Gold Standard And Free Trade
May 13, 2019

Authored by Mike Shedlock via MishTalk,

Economist Judy Shelton, a Trump economic advisor and a gold standard advocate is rumored to be Trump’s next Fed pick.

Bloomberg reports White House Considers Economist Judy Shelton for Fed Board

The White House is considering conservative economist Judy Shelton to fill one of the two vacancies on the Federal Reserve Board of Governors that President Donald Trump has struggled to fill.

She’s currently U.S. executive director for the European Bank for Reconstruction and Development, and previously worked for the Sound Money Project, which was founded to promote awareness about monetary stability and financial privacy.

Case for Monetary Regime Change

On April 21, Judy Shelton had an ope-ed in the Wall Street Journal: The Case for Monetary Regime Change.

More…

Posted at 8:51 AM (CST) by & filed under General Editorial.

With the coming financial crisis and subsequent economy, lots of things which have been a part of the American way of life will change out of economic necessity. Lots of “middlemen” will be removed from the stream of commerce.  This is already seen and fostered by online purveyors, but certain businesses could be eliminated entirely.

Auto dealerships are middlemen who may be eliminated. This will not really help the consumer through a better vehicle price because manufacturers will merely raise prices if permitted to sell directly to the public. The auto dealership has been a business which has been a historically significant part of our business culture, but may not be around for long after the coming financial crisis.

Dealerships are middlemen between the consuming public and the auto manufacturer. These dealerships exist due to franchise laws which prevent auto manufacturers from selling vehicles directly to the public. Dealerships are already struggling to keep their lights on in the present economy. Most people today don’t buy vehicles ~ they lease them. A restructuring or repeal of franchise laws could eliminate dealerships. A repeal of franchise laws may be viewed as necessary to keep the auto manufacturers financially solvent and able to continue production. Auto dealers don’t have a powerful lobby, but auto manufacturers do. The repeal of franchise laws could render franchise contracts avoidable and would have the effect of shuttering auto dealerships.

If dealership franchises were eliminated, the subsequent economic impact would be the loss of those retail jobs, services, utilities, insurance, taxes and attendant carrying costs which support such businesses. It would be possible then for vehicle manufacturers to merely have it’s agents place orders for vehicles and outsource warranty work. Then, manufacturers could raise prices to keep up with whatever demand remains for vehicles and be able to remain in production. The ripple effect of a repeal of the franchise laws would support the manufacturers and keep manufacturing jobs, but spell economic disaster everywhere a dealership presently exists. If this seems unlikely, it may not be when triage in supply and demand occurs. Dealerships can’t sell something which does not exist because manufacturers are out of business and government can’t bail them out. If the middlemen or the manufacturer is to be sacrificed, I submit to you that it will be the dealerships.

The auto industry is among the largest manufacturing industries which remain in the USA and keeping them going will have priority over middlemen who would go under anyway absent their vehicle supply from manufacturers. The government makes the laws and can change the laws. Although there is a mandate in the USA against government impairing contracts, this has not been the case, and we need to look no further than the healthcare sector to see what is required of the consumer and the provider whether, either agrees or not.

Another sector of middlemen which could be eliminated due to financial necessity is in Real Estate. It is already occuring and already being seen. This elimination is a slower consumer driven demise which doesn’t require a change in the laws, it only requires a change in public perception and public education. Real estate is not a sector which has or needs a lobby but it does need a constituency. The constituency is home buyers and sellers.

Many sellers are already moving to the personal sale of real property. Personal sales of property are legal and a seller doesn’t need a real estate broker/agent to sell their own property, privately.  Some people are not capable of negotiating the purchase and sale of real estate, but many are, and only need information and opportunity to sell real estate privately.

Real estate commissions are ultimately a choke point for sellers who can’t afford the loss of those proceeds of a sale. This is especially true in an ever tightening market. More and more, sellers are disillusioned with listings not selling, and many are reverting to their lawful right of “For Sale By Owner” (FSBO). Real estate agents and brokers are middlemen just like auto dealerships. The issue sellers have with sales isn’t that they can’t achieve a bargain and sale with a prospective purchaser, it is the sellers inability to attract a buyer to make their property known to the buying public, and the information needed to sell. Anyone can go to a stationery store, or online to acquire a Real Estate Purchase and Sales Contract. Those contracts should ultimately be reviewed by an attorney, but the era of “caveat emptor” could be the framework of the future real estate market.

With online real estate advertising service providers like Zillow and Trulia, or FSBO sites, or even Craig’s list, real estate agents and brokers can be eliminated from real estate sales at a significant savings. Real estate agents and brokers could be the dinosaurs of real estate sales and it is happening already, especially in areas of already depressed housing market, and areas with older housing stock. The real estate agents and brokers are already a dying breed in some areas and for this reason, they may not survive a financial crisis.

Cutting out the middleman is going to be the new business model following a financial crisis. Any intermediary which can be by-passed in any supply chain will be eliminated due to economic necessity. The Internet which provides direct access to producers will continue to eliminate the middleman. Online purveyors like Amazon are already cutting out the middleman and it is the wave of the future. It really isn’t a wave…it’s a tsunami!

CIGA Kat

Posted at 10:03 AM (CST) by & filed under In The News.

Trust And Follow Your Guts! (TFG)
May 10, 2019

Great and Wonderful Friday Morning Folks,   

      We start the last day of the week off with Gold trading slightly higher with the price at $1,285.90, up 70 cents as I watched London’s Algos force the natural price movement lower from the high of $1,287.60, as they attempt to push Gold below the low created so far at $1,283.90. Silver was not giving us the sell signal, till just now, with its trade at $14.755, down 1.8 cents at its low of $14.75 with the high at $14.83. These very low price movements are not doing anything to the currency trade as we observe our US Dollar not moving either with the price at 97.135, down 2.9 points inside another tight range between the high at 97.245 and the low at 97.095. Of course all of this was done before the Comex Open, at 5 am, and a few hours before the London close.    

      The Venezuelan Bolivar now has Gold priced at 12,842.93 proving a gain of 33.96 Bolivar with Silver’s trade now at 147.366 Bolivar, losing only .09 Bolivar cents during the overnight swing. Argentina’s Peso now has Gold valued at 58,187.51 A-Peso’s, gaining back 381.27 with Silver now pegged at 667.655 regaining 2.233 A-Pesos. We post these prices swings in order to keep the traders eyes on point. One day these huge swings WILL occur in the primary currencies, and that day is getting closer and closer.    

      May Silver’s Delivery demand count now stands at 328 contracts, with 100% of the funds already allocated and in position for the physical purchases with a Volume of 3 up on the board so far this morning. This proves a drop of only 38 receipts from yesterday’s count as the wait continues until there is no more physical to be had at these prices. There is a ton of non-movement everywhere in precious metals prices with the Overall Open Interest being stagnated with the count at 200,651 Overnighters proving 1,634 more shorts had to be added in order to “fake the price” as these Algos restrict virtually all movements in the “first currencies of the world” (Silver and Gold). It’s the Volume and Open Interest counts in the commodity sector that are controlling the prices, not supply and demand. This will change in time and most likely will be the last thing to be reversed. Then the Boom in price will happen.

More…

Bill Holter’s Commentary

If your knees are weak on silver, read this…it is factual!

Silver In Charts: Supply/Demand Crunch After Years Of The Opposite
May 9, 2019

The data is in: based on a review of reports from multiple consultancies, the silver market has officially entered a supply/demand imbalance. The structure now in place sets up a scenario where a genuine crunch could occur.

The silver price has been stuck in a trading range for five years now. But behind the scenes, an imbalance has been forming that could potentially lead to price spikes based solely on the inability of supply to meet demand.

That statement isn’t based on some far-out projection or end-of-world scenario. It comes solely from the latest supply and demand data. As you’ll see, it demonstrates just how precarious the state of the silver market is. And as a result, how easily the price could ignite.

Here’s a pictorial that summarizes the current state of supply and demand for the silver market. See what conclusion you draw…

More…

Bill Holter’s Commentary

My Cousin Vinny would call this “aidn’ and abettin'”, others might say accomplice?

Pope Issues New Law Requiring All Catholic Priests, Nuns To Report Clergy Sexual Abuse
May 9 2019

VATICAN CITY – Pope Francis has issued a new law requiring all Catholic priests and nuns around the world to report clergy sexual abuse and cover-ups by their superiors to church authorities, in a groundbreaking new effort to hold the Catholic hierarchy accountable for failing to protect their flocks.

The church law published Thursday provides whistle-blower protections for anyone making a report and requires all dioceses around the world to have a system in place to receive the claims confidentially. And it outlines procedures for conducting preliminary investigations when the accused is a bishop, cardinal or religious superior.

It’s the latest effort by Francis to respond to the global eruption of the sex abuse and cover-up scandal that has devastated the credibility of the Catholic hierarchy and his own papacy.

More…

Posted at 9:56 AM (CST) by & filed under Jim's Mailbox.

Yes Wolfgang, as we have said for several years, it really is all about debt…TOO MUCH of it!

Bill

Jim/Bill,

Let this sink in!

“Never before in human history have we seen so much debt.  Government debt, corporate debt, shadow-banking debt, and consumer debt are all at record levels. Not just in the U.S., but all over the world.

If you are thinking this is a “Goldilocks economy,” “there is no recession in sight,” “Central Banks have this under control,” and that “I am just being bearish,” you would be right.

But that is also what everyone thought in 2007.”

Being prepared, for what’s to inevitably come, is half the battle.

CIGA Wolfgang Rech

What Could Go Wrong? The Fed’s Warns On Corporate Debt
May 5, 2019

Authored by Lance Roberts via RealInvestmentAdvice.com,

“So, if the housing market isn’t going to affect the economy, and low interest rates are now a permanent fixture in our society, and there is NO risk in doing anything because we can financially engineer our way out it – then why are all these companies building up departments betting on what could be the biggest crash the world has ever seen?

What is more evident is what isn’t being said. Banks aren’t saying “we are gearing up just in case something bad happens.” Quite the contrary – they are gearing up for WHEN it happens.

When the turn does come, it will be unlike anything we have ever seen before. The scale of it could be considerable because of the size of some of these leveraged deals.” – Lance Roberts, June 2007

It is often said that no one saw the crash coming. Many did, but since it was “bearish” to discuss such things, the warnings were readily dismissed.

Of course, what came next was the worst financial crisis since the “Great Depression.”

But that was a decade ago, the pain is a relic of history, and the surging asset prices due to monetary policies has once again lured both Wall Street and Main Street into the warm bath of complacency.

It should not be surprising warnings are once again falling on “deaf ears.”

More…

 

Not off base Wolfgang, right on point!

Bill

Jim/Bill,

Still more Moral Hazard?

First of all, isn’t that what QE is?  Buying bonds to inject cash?

Only, instead of arbitrarily buying bonds, you’re targeting specific issues.

Secondly, now bond investors don’t have to worry about losing money.  The FED would have their back.

Moral Hazard.  Throw caution into wind.  Damn analysis.  Just buy, buy, buy.

You’re creating a demand for paper which the rest of the world is shying away from.

Thirdly, what happens when interest rise?  Imagine the losses the Fed would take.

Am I off base?

CIGA Wolfgang Rech

Fed Launches “Rate-Peg-Instead-Of-QE” Trial Balloon For Next Crisis
May 10, 2019

Authored by Wolf Richter via WolfStreet.com,

Wall Street hype artists and assorted QE mongers would be deeply disappointed.

This came packaged into the middle of a speech by Federal Reserve Board Governor Lael Brainard, on “How Does Monetary Policy Affect Your Community?” It was under the subheading, “Some Issues to Explore.” And it would be a huge shift in how the next crisis will be handled.

During the next crisis when short-term interest rates are already at zero – for the Fed, that is still the lower bound – the Fed might not do the type of QE it did during and after the Financial Crisis when it set a target to buy a fixed amount of securities every month.

Instead, during the next crisis, when 0% short-term interest rates are no longer enough to stimulate the economy, the Fed might announce a target for slightly longer-dated interest rates, such as one-year rates, Brainard said. And it would buy just enough securities with those maturities, to bring the one-year yield down to the target range. And if more stimulus is needed, it might target two-year rates, she said:

Under this policy, the Federal Reserve would stand ready to use its balance sheet to hit the targeted interest rate, but unlike the asset purchases that were undertaken in the recent recession, there would be no specific commitments with regard to purchases of Treasury securities.

More…