Posted at 2:14 AM (CST) by & filed under

By Greg Hunter’s

Economist and money manager Michael Pento has long warned global central banks would lose control and the ability to keep the financial system propped up. The waiting is over. Pento explains, “The central bank charade is over. Remember back in the Great Recession, they took these emergency measures that were going to be ‘temporary in nature.’ They are not temporary in nature. . . . The quantitative tightening program was cut short. It ended in July. . . . They were only able to take away $700 billion of the $3.8 trillion that they created. So, there is $3.1 trillion worth of base money. That’s rocket fuel of real money in the banking system, dry tinder ready to explode to a hyperinflationary crack up boom. They did it on a permanent basis.”

Everywhere you look, nations are up to their necks in unpayable debt in far greater amounts than in the Great Recession. Pento warns, “This is disabling debt on a global basis. It is profuse in China, Japan, Eurozone, United States and throughout the developed world. You cannot service this debt honestly. In other words, the tax base in the European Union, Japan, China and the United States cannot make this debt solvent. So, it has to be defaulted upon. It can be defaulted upon either through inflation or deflation. I think they are going to try both. They tried deflation. It is happening now, and it’s not working out so well. After this crash becomes completely manifest and salient, they will switch towards inflation. I mean inflation like we have never seen before. There will be a strategy to get to inflation. I am not talking about the Fed Funds Rate down to 0%. That’s not going to work. They will probably launch another round of QE (money printing). . . . They are going to have do Modern Monetary Theory (MMT), negative interest rates, ‘Helicopter Money’ and the banishment of cash.”


Posted at 2:10 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

…and where exactly does the capital come from for this new special tool called “countercyclical capital buffer”? I think they’re going to need a bigger boat?

Fed Considers New Tool for a Downturn
August 13, 2019

WASHINGTON—Federal Reserve officials are weighing whether to use a tool that could reduce the risk of a credit crunch in a downturn.

The tool is known as the countercyclical capital buffer. It allows the Fed to require banks to hold more loss-absorbing capital should the economy show signs of overheating, or to keep less of it during bad economic times. The buffer applies generally to banks with more than $250 billion in assets, including firms such as JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc.


J. Johnson’s Latest – The Resolute Longs In Silver Have Yet To Blink!
August 13, 2019

Great and Wonderful Tuesday Morning Folks,    

     Gold has been making newer highs during the overnight with the trade now at $1,537.70, up $20.50 after reaching up to $1,546.10 with the low at $1,520.80. Silver seems to be leading the charge with its trade at $17.42, up 34.9 cents with the high so far at $17.49 with the low down at $17.035. With moves like these in the precious metals one would suspect the Dollar to have fallen but alas, it sits at the centrals support table with its value still pegged at 97.215, up 1.7 points and close to its low at 97.165 with the high at 97.455. All of this activity happened before 5 am pst, the Comex open, and the London close.  

     Our Emerging Markets currency watch is nothing but spectacular for the precious metal bulls! Down south in Venezuela, the Bolivar now has Gold priced at 15,357.78 proving a 199.75 Bolivar gain with Silver adding 4.444 Bolivar with its trade at 173.982. In Argentina, the Peso now has Gold priced at 81,394.88 Peso’s giving the people under that currency a whopping 13,199.54 A-Peso jump in value with Silver doing the same gaining 153.29 A-Pesos with its price at 921.968. The Turkish Lira now has Gold pegged at 8,633.40 showing a gain of 212.37 T-Lira with Silver gaining 3.4636 Lira’s with the price at 97.8137. Yes, it is still our opinion that these price jumps will occur in the primaries as well.    

     August Silver’s Delivery requests gained some purchases during yesterday’s actions with the count now at 210 fully paid for 5,000 ounce contracts, representing a jump of 20 demands for physical and with an early morning trading range between $17.315 and $17.31 and with a Volume of 2 up on the board so far. Of note during yesterday’s trades the Volume in August was way above 100 by the closing of the day giving us the idea that large swaths of EFP’s are still traveling over to London or the buyer of physical is a real manufacturer needing product not only now, but in the future as well. Silver’s Overall Open Interest is proving the Shorts are exiting the manipulation with the count now at 233,043 Overnighter’s proving 5,751 positions have left the field of play while Silver barely moved. We still have more to go, but if the Resolute Longs have finally gauged the play and are successfully pushing out the shorts, we’ll see not only the price of Silver jump, but the OI will continue to fall, how high the price and how low the OI goes is now on the front burner. So far, the Resolute Longs in Silver have yet to blink!  


Posted at 1:49 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

Barbarous relic?

Gold vs Berkshire Hathaway

Returns over Last 20 Years… Berkshire Hathaway: +387% Gold: +488% (see below).

Gold Is Outperforming Berkshire Hathaway Over The Last 20 Years











Bill Holter’s Commentary

100% insanity! Make sure you read the last paragraph because it is correct.

Denmark’s 3rd Largest Bank Is Now Paying People To Take Out A Mortgage
August 11, 2019

Back in 2016, when the first negative interest rate bonds first emerged, we offered readersa glimpse of the NIRP future:

After an intense pow-wow between the administration, Congressional leaders and the Federal Reserve, the Negative Mortgage Rate Program (NMRP) is born. The program is simple. Homeowners will be paid to borrow. The Federal Reserve declares that the NMRP is a brilliant extension of NIRP (negative interest rate policy), because it will benefit everyone, not just the 1%ers.

Here’s how it works: No downpayment needed. 100% financing.

No payments needed. This is the reverse of the negative amortization loans during the subprime era. In other words, it is a negative negative amortization, or neg-neg-am loan. The loan balance will decrease instead of increase.

No need for mortgage insurance since, with no payments, there can be no defaults.

No qualifying needed, hence removing the entire cumbersome loan application process.

Your interest cost will be -$1,000 per year. In other words, your loan balance will be $99,000, if you make no payments at all. Using a commonly accepted 30 year term, the loan balance at the end of 30 years would be around $50,000, all without the borrower having to pay a dime in mortgage expense.

Well for Denmark, the future is now, because three years later and with over $15 trillion in negative-yielding debt around the world, Denmark’s third largest bank is now offering borrowers mortgages at a negative interest rate, effectively paying its customers to borrow money for a house purchase.

Jyske Bank said this week that customers would now be able to take out a 10-year fixed-rate mortgage with an interest rate of -0.5%, meaning customers will pay back less than the amount they borrowed, or precisely what we said would happen in our 2016 preview of the dystopian future.


Bill Holter’s Commentary

And just where do you believe capital will end up when fleeing negative yields?

Investors Ponder Negative Bond Yields In The U.S.
August 11, 2019

A steep slide in U.S. government-bond yields last week wrong-footed investors and left some pondering what was once unthinkable: whether interest rates in America could one day turn negative.

Historically, people who lent money out got more money back later, a way to compensate for inflation, for the risk of not being repaid and for forgoing other investments.


J. Johnson’s Latest – Did The Silver Shorts Blink?
August 12, 2019

 Good Monday Morning Folks,   
      After a weekend of rest Gold continues to ink out a higher value with the trade at $1,517.70, up $9.20 and close to the high at $1,519.90 with the low below the Maginot line at $1,498.60. Silver is following with the trade at $16.975, up 4.4 cents with the high so far at $17.005 and the low at $16.80. The US Dollar, which will eventually be forced lower, is still holding onto its value with the trade at 97.35, up 2.8 points after reaching up to 97.55 with the low real close at 97.29. All of this happened before 5 am pst, the Comex open, and the London close.    

      Our emerging markets currency watch shows Gold still gaining with Silver still dragging its feet, barely that is. Venezuela’s Bolivar has Gold priced at 15,158.03 proving a gain of 22.97 with Silver now priced at 169.538 showing a loss of .449 in Bolivar value. Argentina’s Peso has Gold valued at 68,735.34 showing a gain of 279.54 A-Peso’s with Silver at 768.709 losing 0.158 A-Peso’s over the weekend. Turkey’s Lira has Gold priced at 8,421.03 giving their people a gain of 88.99 in T-Lira value with Silver now at 94.1701 proving a slight gain of 0.607 T-Lira.  

      The August Silver’s Delivery count continues to weaken with the demands now at 190 fully paid for receipts proving a drop in count of 66 requests, delivered either here or in London, and with a Volume of 7 up on the board so far this morning with an added feature of a trading range of $16.875 and $16.860 with the low being the last price traded. Silver’s Overall Open Interest is now at 238,794 Overnighters giving us a possible Silver Shorts Blink in the staring contest of a lifetime proving a drop of 4,997 Obligations since Friday morning’s early count. Hopefully, the Silver Shorts will blink some more, a lot more.  


Bill Holter’s Commentary

Burgers are banned at University of London which is not half as idiotic as Bolsonaro of Brazil suggesting “less pooping” as a way to save the planet! Maybe someone should address chemtrails as a way to save the planet?…even if you ignorantly disavow them, something is definitely coming out of the “asses” of planes that does not resemble the contrails we saw as children. As a side note to President Bolsonaro, what should “regular people” who poop twice a day do???

University Bans Burgers To Help Save The Planet
August 12, 2019

Beef burgers have been banned by a university as part of efforts to tackle the climate emergency.

Goldsmiths, University of London said it is to remove all beef products from sale from next month as the institution attempts to become carbon neutral by 2025.

Students will also face a 10p levy on bottles of water and single-use plastic cups when the academic year starts to discourage use of the products.

The college’s new Warden, Professor Frances Corner, said staff and students “care passionately about the future of our environment” and that “declaring a climate emergency cannot be empty words”.


Brazilian President Suggests Less Pooping To Help Save Environment
August 11, 2019

Brazilian President Jair Bolsonaro on Friday suggested eating less food, and therefore, defecating less, as an answer to some of the world’s problems.

Bolsonaro — who has come under fire in recent weeks after data showed increased deforestation of the Amazon rainforest — offered the response to a reporter who questioned if it was possible to boost the economy, feed those who are hungry and save the environment at the same time. It wasn’t clear if Bolsonaro was being sarcastic.

“It’s enough to eat a little less. You talk about environmental pollution. It’s enough to poop every other day,” Bolsonaro said, according to AFP. “That will be better for the whole world.”


Bill Holter’s Commentary


3 Charts Confirming The Global Economy Is Already In Recession
August 12, 2019

Over the weekend, it finally dawned on Goldman that a protracted trade war – which it not really a trade but a defining clash of the world’s two most advanced superpowers – is bad for the US economy. Yes, the bank which for the longest time was expecting 4 rate hikes this year and for the US-China “trade war” to magically end with an amicable handshake and a hug some time in the next few months, and which only changed its forecast to a rate cut after Powell said he would engage in “mid-cycle easing”, has now once again flip-flopped and in a report published on Saturday warned that it now expects a “bigger hit from the trade war” for the US economy.

The policy uncertainty effect may lead firms to lower capex spending as they wait for uncertainty to resolve. Relatedly, the business sentiment effect of increased pessimism about the outlook from trade war news may lead firms to invest, hire, or produce less. Using industry-level data, we find that greater exposure to sales to China has been associated with slower capex growth as the trade war has intensified. We estimate a total uncertainty and sentiment drag on GDP of 0.1-0.2%.

Overall, we have increased our estimate of the growth impact of the trade war. In our baseline policy scenario, we now estimate a peak cumulative drag on the level of GDP of 0.6%, including a 0.2% drag from the latest escalation. The drivers of this modest change are that we now include an estimate of the sentiment and uncertainty effects and that financial markets have responded notably to recent trade news. Based on our estimates, we have taken down our Q4 growth forecast by 0.2pp to 1.8% (qoq ar).


Posted at 11:22 PM (CST) by & filed under In The News.

Bill Holter’s Commentary

…and this pabulum from the Pope dope who doesn’t need to build a wall because he already lives behind one!

Pope Francis Cautions Against Nationalism, Says Recent Political Rhetoric Has Echoed ‘Hitler In 1934’
August 10, 2019

Pope Francis on Friday said he was “concerned” about recent political rhetoric, cautioning against nationalism and saying that recent political speeches he’s heard “resemble those of Hitler in 1934.”

“I am concerned because we hear speeches that resemble those of Hitler in 1934,” he told Italian outlet La Stampa. “’Us first. We … We … These are frightening thoughts.”

The pope’s comments come after Italian Deputy Prime Minister Matteo Salvini called for the parliament to be dissolved and asked President Sergio Mattarella to institute snap elections as an attempt to push the country’s government further right politically, The Washington Post reported.

Mattarella hasn’t said whether he’ll act on Salvini’s request. But the Post reported that the request comes as Italy grapples with months-long tensions within its coalition government.

The paper noted that Salvini has drawn comparisons to President Trump for his rhetoric saying Italy should be put first and that the country should crack down on immigration.


Posted at 11:19 PM (CST) by & filed under Jim's Mailbox.

Which South Park episode is this?

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”


Posted at 11:12 PM (CST) by & filed under

By Greg Hunter’s (Early Sunday Release) 

Bill Murphy, Chairman of the Gold Anti-Trust Action Committee (GATA), says the market manipulators and price suppressers of gold and silver are fighting a losing battle. Murphy explains, “The open interest on silver is at all-time high levels even though the price is barely $17 per ounce. That shows they are going all out even now to keep it down here. So, at some point, they are going to be overrun. They are going to have what we call a commercial signal failure, where these commercials to the big banks and other people who have been suppressing the price are just completely overrun. A lot of people are not prepared for that, but it is in the works right now. I am pretty sure it is going to occur.”

On gold, Murphy is just as bullish as he looks around the world at the high price of the yellow metal. Murphy says, “Gold is at all-time highs in 73 different countries. In Canada, it is $100 higher than its (previous) all-time highs. The all-time high in U.S. dollars for gold is around $1,900 per ounce. It is going to take that out and start heading for $3,000, and I think it is going to do this faster than people think. The tipping point has been reached, and the gold cartel can’t do what they have done for so long. . . . It’s interesting, people say it’s the low interest rates (driving the price up). We had low interest rates years ago, but all these things have not mattered. Now, they are talking about low interest rates, negative interest rates and debt levels, and it’s all coming to the forefront at once, and they don’t have the physical gold to do what they did for so long. . . . I don’t think the gold cartel can do what they have been doing. Everything has changed, and it has to do with the physical market.”


Posted at 6:42 AM (CST) by & filed under Jim's Mailbox.

Jim & Bill,

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


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?