Posted at 11:48 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

YouTube owes us an apology! Bill and Jim’s discussion for subscribers was taken down two months ago, presumably for being “fake news”. Now it turns out the Navy is investigating whether or not the two mishaps with the Fitzgerald and McCain were “cyberattacks”. Tinfoil hats? You must make the leap, what does a cyberattack mean for the dollar?

U.S. Navy Investigating If Destroyer Crash Was Caused by Cyberattack
September 14, 2017

The military is examining whether compromised computer systems were responsible for one of two U.S. Navy destroyer collisions with merchant vessels that occurred in recent months, Vice Admiral Jan Tighe, the deputy chief of naval operations for information warfare, said on Thursday.

Naval investigators are scrambling to determine the causes of the mishaps, including whether hackers infiltrated the computer systems of the USS John S. McCain ahead of the collision on Aug. 21, Tighe said during an appearance at the Center for Strategic and International Studies in Washington.  

Investigators are not, however, considering the possibility that the USS Fitzgerald collision, which took place on June 17, was the result of hacking.

“With the McCain incident happening so close to the Fitzgerald,” questions immediately arose about whether computer manipulation could have been the cause of the crash, Tighe said. The Navy has no indication that a cyberattack was behind either of the incidents, but is dispatching investigators to the McCain to put those questions to rest, she said.

Tighe said the Navy plans to use the results of the McCain probe to include a look at cybersecurity in future investigations.

More…

Posted at 11:43 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

I guess it’s easy to take away rights people don’t even know they have?

Poll: Nearly 4 In 10 Americans Can’t Name Any First Amendment Rights
September 13, 2017

According to Penn’s Annenberg Public Policy Center released Tuesday, 37 percent could not name any of the five rights protected by First Amendment, and just about half (48 percent) could name freedom of speech.

In addition, the survey found that 33 percent of those polled were unable to name one of the three branches of the U.S. government, such as legislative, executive and judicial. And only 26 percent of the respondents could name the three branches.

“Protecting the rights guaranteed by the Constitution presupposes that we know what they are. The fact that many don’t is worrisome,” said Kathleen Hall Jamieson, director of the Annenberg Public Policy Center. “These results emphasize the need for high-quality civics education in the schools and for press reporting that underscores the existence of constitutional protections.”

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Trump: US Options On North Korea ‘Effective And Overwhelming’
September 15, 2017

President Trump said Friday that he is confident the United States’ options toward North Korea are “effective and overwhelming.”

“America and our allies will never be intimidated. We will defend our people, our nations and our civilization from all who dare to threaten our way of life,” he told Air Force personnel at Joint Base Andrews. “This includes the regime of North Korea, which has once again shown its utter contempt for its neighbors and for the entire world community.”

“After seeing your capabilities and commitment here today, I am more confident than ever that our options in addressing this threat are both effective and overwhelming,” he continued.

Trump’s comments came after H.R. McMaster, his national security adviser, reaffirmed that the Trump administration has military options in place for dealing with North Korea.

“For those who have said and who have been commenting on a lack of a military option, there is a military option,” he said at the White House briefing, though he noted that it was not the administration’s preferred route for dealing with the nation’s aggressiveness.

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Bill Holter’s Commentary

A witch hunt to prevent a vote to exit the matrix?

Spain: Police Confiscate Trove Of Posters For Catalan Vote
September 17, 2017

BARCELONA, Spain (AP) — Spain’s paramilitary national police force says its agents have confiscated more than 1.3 million posters, flyers and pamphlets promoting the planned independence referendum by Catalonia’s regional government.

The Civil Guard said the campaign literature was seized on Sunday during raids of an unnamed business in Barcelona province that distributes advertising material.

The police force says the trove takes the number of items endorsing the independence referendum that have been confiscated to 1.5 million.

The Spanish government has vowed to stop the planned Oct. 1 secession vote, saying it’s illegal. But Catalonia’s leaders have pushed ahead even though Spain’s Constitutional Court suspended a regional law that paved the way for the referendum and has agreed to review the vote’s constitutionality.

Polls show Catalonia’s 7.5 million residents roughly split on independence.

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Bill Holter’s Commentary

You know we live in a crazy world when something like this is even debated.

College Park, Maryland Won’t Allow Non-Citizens To Vote In Local Elections After All
September 15, 2017

The College Park City Council voted 4-3 Tuesday night to allow legal permanent residents and illegal immigrants to participate in municipal elections. One council member did not vote.

“For most Council actions, a simple majority of Councilmembers present must vote in favor of an item for it to be adopted,” the city said in a news release. “However, changes to the Charter have a different requirement. The City Charter was amended in June to require the affirmative vote of six elected officials to change the Charter.”

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Posted at 1:33 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

The SWIFT system is not such a powerful entity anymore.

I believe this was an error of an intelligence agency (ours), that pulled SWIFT off the shelf to threaten some country over not much at all a few years back.

Now all North Korea will need, in time, is a Mastercard to finance their nuclear program. That is if Russian and China have not hacked STACK first.

STACK™ Partners With Mastercard To Launch The First Digital Money Account With Mobile Tap-To-Pay Functionality
September 11, 2017

STACK announced a partnership with Mastercard today, two weeks ahead of its official Beta launch. More than 20,000 Canadians have registered for the Beta app, which will begin onboarding users this month through Google Play. A public launch for both Android and Apple devices is planned for later this year.

STACK is reinventing financial services with a fee-free alternative to traditional banking. Combining advanced machine learning with customizable tools, the STACK app delivers a smarter way to spend, save and share your money, straight from your smartphone. STACK will be the first financial services provider to offer instant access to multi-currency and crypto wallets as part of a 360-degree solution to personal finance.

STACK accounts will include a chip-and-pin Mastercard prepaid card, providing seamless and secure point-of-sale access to worldwide retailers, global ATM networks and Purchase Protection on every transaction.

“Partnering with Mastercard supports our mission to provide a better alternative to traditional financial services, without compromising convenience or reliability,” said Miro Pavletic, Co-Founder and CEO of STACK. “Mastercard is a trusted technology expert in the payments industry, and we’re committed to working with the best of the best.”

“Canadians want to manage their money on their own terms and STACK is giving them that ability,” said Patrick Sulston, Vice President of Market Development in Canada, Mastercard. “With a Mastercard prepaid card inside the STACK app, Canadians can easily, securely and conveniently access their funds and shop in-store and online.”  

STACK is the first financial technology company in North America to offer members a mobile tap-to-pay option attached to a digital money account, enabling members to pay with their mobile phones. Other features like automated savings, instant rewards and social sharing provide a lifestyle-focused approach to financial services.

“Canadians deserve better than what’s available in the current market,” said Pavletic. “With the advancements of tech-enabled financial services, we can finally offer a replacement to legacy institutions with a new, more consumer-friendly alternative.”

More…

Unprecedented Global Risk – No One Cares
September 15, 2017

“Risk involves the chance an investment’s actual return will differ from the expected return. Risk includes the possibility of losing some or all of the original investment.” (Investopedia)

So there we have it. Risk means that you can lose part or all of the investment. Normally valuations take risk into account. But is the world really valuing the following risks accurately:

A very risky world

Wars

North Korea – South Korea – USA – Japan – China – Russia incl. nuclear war

Ukraine – USA – Russia

Syria – Israel – USA – ISIS – Al-Qaeda – Saudi Arabia, Yemen – Iran, Iraq etc.

China – India – Pakistan – Afghanistan – USA

Plus many more

Civil war and terrorism

In most countries including USA and Europe

More…

Jim Sinclair’s Commentary

The latest from John Williams’ http://www.shadowstats.com

– Net of Hurricane Harvey Effects, Headline Economic Numbers Still Were Miserable, Suggestive of Recession
– Hurricane Impact on August Activity: Mixed, Probably Net-Neutral for Retail Sales; Accounted for 0.75% (-0.75%) of the 0.90% (-0.90%) Drop in Monthly Production


– August Real Retail Sales Declined by 0.61% (-0.61%) in the Month, Plunged by 1.24% (-1.24%) Net of Downside, Prior-Period Revisions


– Third-Quarter Real Retail Sales Are Contracting at an Early (Two-Month) Annualized Pace of 0.4% (-0.4%)


– Ex-Hurricane, August Industrial Production Declined by 0.15% (-0.15%)


– In the Dominant but Still-Faltering Manufacturing Sector of Production: A Record 116 Months of Continued Non-Expansion, with No End in Sight

“No. 910: August 2017 Retail Sales and Industrial Production”

www.shadowstats.com

Posted at 3:05 PM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

This means that the bull market in gold and silver is starting!

CIGA GG

“Markets Are Wrong”: Hugh Hendry Shuts Down His Hedge Fund; Here Is His Farewell Letter
September 15, 2017

In the beginning, Hugh Hendry was the consummate contrarian bear, which helped him make a killing a decade ago when everyone else was blowing up. Unfortunately for him, he did not realize just how far the central planners were willing to take their monetary experiment, so after the market troughed in 2009, he kept his bearish perspective, which cost him dearly in terms of missed gains and lost capital under management, until one day in November 2013, he capitulated and turned bullish, infamously saying “I cannot look at myself in the mirror; everything I have believed in I have had to reject. This environment only makes sense through the prism of trends.”

Since then, the reborn Hendry who would never again fight central banks, gingerly made his way, earning his single digit P&L…

More…

 

Posted at 4:24 PM (CST) by & filed under Bill Holter.

I had not planned on penning a public article today but my plans were changed by Martin Armstrong as he again is busy attempting to rewrite history.  He is again trying to scare people away from their only financial hurricane insurance, gold …why?  Any thinking person knows a credit disaster is coming.  Heck, even he has called for a pending financial disaster himself…but gold is not a safe harbor “this time”?

 

As a reminder of past fallacy, Mr. Armstrong wrote back in September 2015 “…”You are doomed if you cling to the idea that gold will rise simply because stocks decline. Gold was DEVALUED in 1934 since gold was MONEY. What it could purchase for $20.67 then cost $35. (this line has since been deleted from his original article) The government confiscated gold and moved to a TWO-TIER monetary system with gold used exclusively for international settlements, not domestic.”  …Martin Armstrong

 

The fact is, gold was REVALUED 70% higher versus the dollar (and much more versus other assets) as what previously required $20.67 to purchase one ounce of gold moved to $35.  I said at the time, what he wrote could not have been a typo or a mistake, his logic was in reverse and he was trying to rewrite history.

==============================================

 

Fast forward to present, he is at it again.  He recently posted   “Am I certain about the strong dollar?”  Let’s take a look at a few glaring “alterations” of history and poor logic according to Martin Armstrong.

His article starts out with “You can denominate oil to peanuts in some other currency but that still will never put a dent in the dollar. Why? It is capital flows than count and trade is minimal”.

Um not quite right Martin, and we will save this for the end as it’s the main broken bone to the writing.

He then attacks the Euro.  While I do not disagree with his premise that the Euro is flawed because it is a common currency but consists of members with different credit ratings and different interest rates.  I do disagree with his historical recollection.  Martin tells us “In general, Europeans are still trapped in World War II thinking that a stronger currency means economic boom.”  This is absolutely not so (please read “The rotten heart of Europe” by Bernard Connolly).  For years prior to the Euro commencing, nation after nation DEVALUED their currency in order to receive cost benefit for their produced and traded goods.  And besides, hasn’t Mario Draghi continually tried to talk the Euro down and devalue versus other world currencies?  World currencies have been in a race to the bottom, I am not sure what Armstrong is looking at here.

Then he goes on to say “the Chinese yuan will not replace the dollar until AFTER 2032”.  Has he not seen China for at least the last five years or more readying itself to do its business without using dollars?  Trade deals, credit facilities, bourses and clearing facilities all being erected to the EXCLUSION of dollars?  Does he not see the rest of the world distancing themselves from the U.S. and following very closely along with China?  Plus, with history as a guide, the $20 trillion current US debt will double twice to $80 trillion by 2032, will the U.S. even be financially viable by then (is it even viable now)?

He went full circle to what he started with and the most flawed of all; “Denominating oil in yuan or euro means nothing.  Where will you park your cash?”.

And then claims; “The ONLY time we get monetary reform is when the dollar RISES, not declines. Hey, if the dollar declines, then interest rates will continue to travel negative, gold will collapse, the stock market will implode, and Trump will emerge as the best president in history creating massive new American jobs exporting everything not just blue jeans, rock & roll, and US corrupt law. Emerging markets can keep borrowing dollars with no end, dumping commodities that are at excess supply, and everyone will be perpetually happy – the euro will be strong at last and magically the ECB can just keep European governments on life support without end.”

First, he is basically saying we will have economic nirvana with a weaker dollar and only at the expense of the stock market (and gold bulls of course).  A weak dollar sounds wonderful according to him, maybe even “the answer” to a failed system?  Unfortunately there is a thing called “history” which shows when a currency weakens or even collapses, stock markets, (gold), and assets in general skyrocket in that currency …just look at the results of Weimar, Zimbabwe or even Venezuela, their stock markets WENT UP in their own local currencies… not down.  If weak currencies (inflation) were such a good thing, why haven’t we already figured this one out and EVERYONE just print and devalue?  This has been tried over and over again throughout time and always ended up with the fiat currency being busted through over issuance.  “Printing” currency to devalue does not produce prosperity… if it did there would be no poverty anywhere on the planet.  This is historical fact, not opinion.

As for saying denominating oil in yuan, “means nothing”, can he really believe this?  According to Armstrong, “flow” is what is all important (I must agree), … and “trade is minimal”.  I beg to differ, TRADE is ALL IMPORTANT in today’s world and certainly affects capital flow very significantly “at the margin”.  If trade and settlement did not matter to the dollar, then why has the U.S. used its military for so long to enforce the petrodollar?  For that matter, why was the petrodollar scheme set up in the first place?  (It’s OK Martin, you know what happened on Aug. 15, 1971).  I bet Saddam and Mohamar might disagree with Armstrong’s take here if they were still living, what you actually settle oil (and other commodities) DOES MATTER because it affects “flow”, (and ultimately lives!).

I have a couple last questions.  How is it Martin that a weaker dollar will not bring forth “monetary reform”?  I understand your stronger dollar thesis where foreigners are financially blown up for borrowing in dollars that increase the difficulty in payoff and service of their debt.  But why would there need to be monetary reform if the reserve currency was acting like the reserve currency and remained a strong standard to be compared to and saved in?

How is it, a weaker (or significantly weaker) dollar cannot bring forth monetary reform?  What if the dollar is weaker because less people are using it …as they already are today?  What if the dollar is weaker because the Treasury/Federal Reserve balance sheets look like they are approaching junk bond status …and foreigners bail out of dollars …as they already are?  In reality, isn’t it the weak dollar itself (and poor financials of the issuer) that has prompted the rest of the world to seek a new reserve currency in the first place?  They are tired of seeing their “savings” in dollars depreciate AND don’t fancy playing the game of “never getting paid” …!

You see Martin, dollars only promise to pay more dollars and “settlement” is never really made.  With gold, because it is no one else’s liability, IS final settlement… (but you already know this of course).  This is just one more difference between a “currency” and “money” that you seem not to want the public to understand?  I am not sure why this is?  You used to be such a beacon of logic, what happened to it?  Where did it go?

One last question, what would John Edelson or Fred Manko say about your history?

Standing watch,

Bill Holter

Holter-Sinclair collaboration

 

CIGA Wolfgang’s response:

Bill,

Nice retort,

A few points:

-Quite simply, people FLEE a weakening currency (as you stated).  Just look at Venezuela today.

What if the dollar is weaker because less people are using it …as they already are today?  What if the dollar is weaker because the Treasury/Federal Reserve balance sheets look like they are approaching junk bond status …and foreigners bail out of dollars …as they already are?

-China does not want to be a reserve currency.  They simply want a new basket to replace the current Dollar hegemony.  Think Distributed Ledger.

‘Yes, a brave new world where the dollar is no longer the world reserve currency.

Barbara C. Matthews, a former US Treasury Department attaché to the European Union, has reached the same conclusion.

She said the link between the globalists’ currency and Distributed Ledgers “is impossible to avoid.”

And that “the IMF seems to be exploring the possibility of permitting a broader use of [their globalist currency] beyond internal transactions among member central banks.”

Make no mistake, if the IMF is planning to use Distributed Ledgers to replace the U.S. dollar with SDRs. And just to be clear, when SDRs take over, the American people will be left with devalued dollars.

On August 7, 2017, China announced they will begin using Distributed Ledger technology to collect taxes and issue “electronic invoices” to citizens there.’

Bill,http://www.zerohedge.com/news/2017-09-10/dear-president-trump-america-rude-awakening-January

-Reserve currency status is a license for monetary abuse.

“This creates a virtually unlimited demand for U.S. dollars, which allows us to print trillions of dollars each year to pay for wars, debt and anything we want. It keeps our country operating.”

http://www.zerohedge.com/news/2017-09-10/dear-president-trump-america-rude-awakening-january

-Tell the following to Germany and their “Economic Miracle” of the 1950″s (as it’s currency slowly climbed to new heights).  Or to the Japanese in the 1970’s as they branded their product, raised prices, and assumed high quality production.  It was literally quality product recognition that made them great.

“Hey, if the dollar declines, then interest rates will continue to travel negative, gold will collapse, the stock market will implode, and Trump will emerge as the best president in history creating massive new American jobs exporting everything not just blue jeans, rock & roll, and US corrupt law. Emerging markets can keep borrowing dollars with no end, dumping commodities that are at excess supply, and everyone will be perpetually happy – the euro will be strong at last and magically the ECB can just keep European governments on life support without end.”  ….Martin

-Lastly, in regards to flow, see the chart and its importance!

As for saying denominating oil in yuan, “means nothing”, can he really believe this?  According to Armstrong, “flow” is what is all important (I must agree), … and “trade is minimal”.  I beg to differ….Bill.

Great article Bill.

CIGA Wolfgang Rech

Posted at 10:39 AM (CST) by & filed under In The News.

Bubble? Tech Companies “Express Themselves” Through Architecture
September 13, 2017

On August 2, 2004, Bank of America broke ground on its 2.2 million square foot, NYC headquarters – the Bank of America Tower.

The all-glass tower would rise 57 stories above midtown Manhattan, with a giant spire taking the height to 1,200 ft. It’s currently the fourth-tallest building in New York City, and it cost $1 billion.

The next year, investment bank Goldman Sachs broke ground on its $2.4 billion headquarters in downtown NYC.

The investment bank brought an entire village to its Battery Park City digs – including several restaurants from famed restaurateur Danny Meyer, a wine store, a florist, a bakery and a barber shop.

Goldman also bought a nearby hotel (which included a movie theater) and a parking garage.

More…

Bill Holters Commentary

…and how do the “climate change” people explain this?

List of 100 US Patents Related to Weather Modification

Bill Holters Commentary

A 90% cut in pension benefits?  What’s in your pension???

Public Workers From Two More Towns Expected To Lose Calpers Pensions
September 13, 2017

Ten workers and retirees from government agencies in two far corners of California likely will see their pensions slashed because their employers have not paid bills to the state’s largest retirement fund in more than a year.

Trinity County Waterworks District No. 1 west of Redding and Niland Sanitary District from Imperial County are in line to become the third and fourth government agencies to break with CalPERS over the past 12 months in a manner that shortchanges their retirees.

The CalPERS Board of Administration is scheduled next week to vote on ending contracts with the two small districts because they’re in default.

The districts are expected to join the town of Loyalton in Sierra County and an organization called the East San Gabriel Valley Health Consortium as small governments that are falling out of CalPERS because of different financial stresses.

In Trinity, five current and former employees will see their promised pensions slashed by 70 percent. Niland’s five beneficiaries will see a 92 percent to 100 percent cut in pension benefits, according to CalPERS’ staff reports.

More…

Bill Holters Commentary

Solid finance? What happens if the foreign capital stops coming in?

Radical Disconnect As Average Metro Vancouver Earner Reaps $72,000 A Year, Pays $1.4 Million For Home
September 14, 2017

Metro Vancouver, one of the world’s more expensive housing markets, lags far behind other Canadian cities in wage earnings according to latest Statistics Canada figures.

The census stats, released Wednesday, underline a radical disconnect between local wages and skyrocketing home prices in Metro Vancouver, according to Simon Fraser University urban expert Andy Yan.

The median total income for households in Metro Vancouver was $72,662 (15th for census metropolitan regions across Canada) in 2015. By comparison, Calgary’s median total income was number one in Canada at $99,583, while the median household income across Canada was $70,336.

Average housing costs for Canadian cities won’t be released by Statistics Canada until late October. But based on general knowledge of real estate trends across Canada, Yan said he can already draw conclusions on Vancouver’s housing affordability crisis.

“It was really surprising to me that we have the 15th highest incomes in Metro Vancouver, even coming behind Toronto,” Yan said. “What we learned today is in Vancouver you are living in paradise, but your wages are in purgatory.”

More…

The Surprising Place Where Cash Is Going Extinct
September 13, 2017

Somaliland, a self-declared republic in East Africa, faces high illiteracy and has an economy ravaged by a civil war. But it might just become the first cashless society on Earth.

Half a dozen men crowd round one of the many small colourful wooden shacks off a main street in Hargeisa, Somaliland, shouting and arguing over the quality of khat – a mild narcotic that has been likened to both coffee and cocaine – that they’ve just been hastily handed by the vendor.

Untold World

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Customers quickly come and go, grabbing bundles of the green leafy, legal plant that they deem good enough before punching digits into phones and disappearing as quickly as they came.

“We need to do everything quickly, and paying with cash here is slow,” Omar, one of the khat sellers says as he chews on the green leafy plant himself. “It keeps people calm if they can get their khat quickly.”

No cash is transferred, and there’s not a credit card in sight. But customers haven’t got their daily khat fix for free; they’ve paid using their mobiles, transferring money on the sandy Somali street in seconds with little more than a mobile phone and a few numbers.

More…

Gorka: Trump Won on ‘Make America Great Again,’ Not ‘Make the GOP Great Again’
September 14, 2017

Sebastian Gorka, former deputy assistant to President Trump, says that Trump’s willingness to work with Democratic leaders shows he’s serious about his agenda.

Some Republicans took issue with Trump striking a budget deal with Democrats last week and then meeting with Senate Minority Leader Chuck Schumer (D-NY) and House Minority Leader Nancy Pelosi (D-CA) on Wednesday to discuss border security and what to do about so-called “Dreamers.”

On “Hannity,” Gorka argued that Trump won the election with a message of “make America great again,” not “make the Republican Party great again.”

“It isn’t the Republican Party that won last November the 8th. It is a New York real estate billionaire who won. And there’s a reason for that: because they haven’t served the nation’s interests for more than a decade,” Gorka said.

More…

Posted at 10:39 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

This is why China has been so prescient in developing their own payment system.

They saw the writing on the wall. Distancing themselves from U.S. hegemony.

This may certainly be a case where the U.S. is cutting of their nose, to spite their face.

“In other words, to force compliance with the North Korean sanctions, Mnuchin threatened Beijing with not only trade war, but also a lock out from the dollar system, i.e. SWIFT, something the US did back in 2014 and 2015 when it blocked off several Russian banks as relations between the US and Russia imploded.”

Eliminating money transfers and hence trade with China, in addition to forcing the East to utilize the Yuan/Ruble proxy for trade in lieu of the U.S. Dollar.

Bad move (if you don’t own gold).

And the kicker is…………..China sided with the U.S. in UN sanctions against North Korea! WFT?

CIGA Wolfgang Rech

US Threatens To Cut Off China From SWIFT If It Violates North Korea Sanctions
September 13, 2017

In an unexpectedly strong diplomatic escalation, one day after China agreed to vote alongside the US (and Russia) during Monday’s United National Security Council vote in passing the watered down North Korea sanctions, the US warned that if China were to violate or fail to comply with the newly imposed sanctions against Kim’s regime, it could cut off Beijing’s access to both the US financial system as well as the “international dollar system.”

Speaking at CNBC’s Delivering Alpha conference on Tuesday, Steven Mnuchin said that China had agreed to “historic” North Korean sanctions during Monday’s United Nations vote. “We worked very closely with the U.N. I’m very pleased with the resolution that was just passed. This is some of the strongest items. We now have more tools in our toolbox, and we will continue to use them and put additional sanctions on North Korea until they stop this behavior.”

In response, Andrew Ross Sorkin countered that “we haven’t been able to move the needle on China, which seems to be the real mover on this, in terms of being able to apply the real pressure. What do you think the issue is? What is the problem?”

The stunner was revealed in Mnuchin’s answer: “I think we have absolutely moved the needle on China. I think what they agreed to yesterday was historic. I’d also say I put sanctions on a major Chinese bank. That’s the first time that’s ever been done. And if China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the U.S. and international dollar system. And that’s quite meaningful.”

And to underscore his point, the Treasury Secretary also said that “in North Korea, economic warfare works. I made it clear that the President was strongly considering and we sent a message that anybody that wanted to trade with North Korea, we would consider them not trading with us. We can put on economic sanctions to stop people trading.”

More…

 

This is homemade de-dollarization.

The Swift system threat is old news.

Both China and Russia are prepared with their own payment and receive system. Now you will see the growth of the Brics, with their own system in place. We certainly have left over geniuses from the last administration in the charge of the mechanics finance. To complete the farce, all we need is a reappointment of the Chair at the Federal Reserve.

Jim

 

Isn’t this exactly what China is moving towards anyway?

Bill

————————————————-

Jim/Bill,

In the first week of September, my salary increased 20%, when accounting for calendar adjustments. (Only worked 4 days, with Labor Day off).

“When accounting for calendar adjustments, the deficit last month was $97 billion compared with an adjusted deficit of $107 billion the prior year. ”

Why don’t I feel 20% richer?  Isn’t it real?

CIGA Wolfgang Rech

U.S. Government Posts $108 Billion Deficit in August
September 13, 2017

WASHINGTON (Reuters) – The U.S. government recorded a $108 billion deficit in August, the Treasury Department said on Wednesday.

That compared with a budget deficit of $107 billion the same month one year earlier, according to Treasury’s monthly budget statement.

Economists polled by Reuters had forecast the Treasury reporting a $119.5 billion deficit last month.

When accounting for calendar adjustments, the deficit last month was $97 billion compared with an adjusted deficit of $107 billion the prior year.

The deficit for the fiscal year to date was $674 billion, compared to $619 billion in the same period of fiscal 2016. On an adjusted basis, the fiscal-year-to-date deficit was $705 billion last month versus $619 billion in the year-earlier period.

More…

—————————————————-

Dear JB,

When you own crowd screws you, what do you do? Find a new crowd. That is business.

Jim

Most Voters Welcome Trump’s Outreach to Congressional Democrats
September 13, 2017

Despite their failure to advance President Trump’s agenda, congressional Republicans aren’t happy about his outreach to Democrats in the House and Senate, but most voters think it’s a great idea.

A new Rasmussen Reports national telephone and online survey finds that 66% of Likely U.S. Voters say it is good for the country if Trump works with congressional Democrats to advance his agenda. Just 13% think the bipartisan cooperation is bad for the country, while 21% are undecided. (To see survey question wording, click here.)

Only 19% believe the president should continue to rely on congressional Republicans to pass his agenda. That’s down from 29% in early April. Sixty-five percent (65%) now feel he should reach out more to Democrats in Congress for help versus 58% who felt that way five months ago. Sixteen percent (16%) are not sure.

Republicans (72%) are even more enthusiastic about the president working with congressional Democrats than Democrats (62%) and voters not affiliated with either major party (63%) are.

Trump surprised his fellow Republicans when he bypassed them last week to strike a deal with congressional Democrats to move quickly on aid for victims of Hurricane Harvey and to raise the ceiling on government money borrowing until mid-December.

More…

—————————————————-

Finally an arrest (of another lackey), waiting to see his boss get it too.

CIGA JB

Former UBS Trader Arrested, Charged With Rigging Gold Prices
September 13, 2017

Three years after we first identified the former head of UBS’s gold desk in Zurich as someone directly implicated in the rigging of precious metals prices, Bloomberg reports that Andre Flotron, a Swiss resident, was arrested while visiting the U.S., according to people familiar with the matter.

Having been “on leave” since 2014, it appears Andre’s hope that he was gone but “keen to return in due time” are now up in smoke.

More…

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What can possibly go wrong here?

CIGA JB

Study: American Credit Card Debt Close to $1 Trillion
September 11, 2017

Americans are racking up close to $1 trillion in credit card debt, according to a new study.

The study conducted by personal finance website WalletHub found that American credit card debt rose by 6 percent to $936.10 billion, up from $884.70 billion in 2016.

In the second quarter of 2017, U.S. consumers added $33 billion in debt with credit cards — the second-highest amount of debt since 2008.

WalletHub predicts that U.S. consumers will amass $60 million more in debt with credit cards by the end of 2017, pushing the total amount of credit card debt in America to $1 trillion.

The study notes that the average household credit card balance in the U.S. went up to $7,996 in 2017, up from $7,584 during the same period in 2016.

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Jim/Bill,

Funny thing happened to me on my way to old age.

Never thought I’d see the day when inflation was bad for gold!

CIGA Wolfgang Rech

Gold Weakens As U.S. Inflation Beats Expectations In August
September 14, 2017

(Kitco News) – Gold prices fell on Thursday following better-than-expected U.S. inflation data from August.

The U.S. Consumer Price Index rose 0.4% in August, after edging up just 0.1% in July, the U.S. Labor Department said on Thursday. Consensus forecasts were calling for a rise of 0.3%.

The pickup was mainly led by increased gasoline and shelter costs, both rising 6.3% and 0.5%, respectively, the report said.

Annualized inflation also beat forecasts by coming in at 1.9% instead of the expected 1.8%.

In an immediate reaction to the data, gold prices plunged, with December Comex gold trading at $1,322.10, down 0.47% on the day. Thursday’s New York trading session began with gold modestly lower, as the yellow metal was still going through a corrective pullback after reaching a 12-month high last week.

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Coutresy of CIGA JB

Jim

De-Dollarization Spikes – Venezuela Stops Accepting Dollars For Oil Payments
September 14, 2017

Did the doomsday clock on the petrodollar (and implicitly US hegemony) just tick one more minute closer to midnight?

Apparently confirming what President Maduro had warned following the recent US sanctions, The Wall Street Journal reports that Venezuela has officially stopped accepting US Dollars as payment for its crude oil exports.

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Bill/Jim,

Every time North Korea launches another missile, there’s a flight to safety.

What’s interesting is that the flight is to gold…and even the Yen (which you would think be the last place for safety with NK on their doorstep)

Forget Waldo…Where’s the Dollar?

No flight to the Dollar. That speaks volumes!

CIGA Wolfgang Rech

Gold, Yen Spike (Again) After Another North Korea Missile Launch Prep Headline
September 14, 2017

Gold and Yen spiked this morning (right before CPI) on the back of Nikkei headlines about preparation being observed for another North Korean missile launch (following overnight news that US officials had confirmed). Now Reuters reports that defense officials have confirmed to Fox News that North Korea is prepping for a new missile launch and gold and yen are bid once again.

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