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

Jim/Bill,

Will only cryptocurrencies be used?

Dave

Sidewalk Labs Document Reveals Company’s Early Vision For Data Collection, Tax Powers, Criminal Justice
October 30, 2019

A confidential Sidewalk Labs document from 2016 lays out the founding vision of the Google-affiliated development company, which included having the power to levy its own property taxes, track and predict people’s movements and control some public services.

The document, which The Globe and Mail has seen, also describes how people living in a Sidewalk community would interact with and have access to the space around them – an experience based, in part, on how much data they’re willing to share, and which could ultimately be used to reward people for “good behaviour.”

Known internally as the “yellow book,” the document was designed as a pitch book for the company, and predates Sidewalk’s relationship and formal agreements with Toronto by more than a year. Peppered with references to Disney theme parks and noted futurist Buckminster Fuller, it says Sidewalk intended to “overcome cynicism about the future.”

More…

 

From our friend Werner.
Bill

Posted at 9:07 AM (CST) by & filed under In The News.

J. Johnson’s Latest – Is Today The Right Side of a V Bottom in Silver?

November 6, 2019

 Great and Wonderful Wednesday Morning Folks,    

      Gold has turned positive even with all that newly added “Never Ever Been Seen Before Life of Contract High in Comex Paper Open Interest” with the trade at $1,486.30, up $2.60 after the punch in the price gut low at $1,483.80 with the high at $1,490.30. Silver is simply not allowed to respond in kind as we observe the continual shorting without product as the paper game is allowed to overrule price discovery, until it can’t any longer, with its trade at $17.450, down 11.8 cents after being dipped to $17.36 with a high at $17.62. The US Dollar, really a basket of currencies set to trade against the precious metals, is down 18 points as well with the value at 97.625 and right beside the low of 97.61 with a high only 16 points from the low at 97.77. All of this activity happened before 5 am pst, the Comex open, and the London close.     

      Maybe observing the emerging markets currencies can prove how little the metals move under the US Dollar with all other currencies supporting the Dollar’s control (for now) with Gold, under the Venezuelan Bolivar now trading at 14,844.42, proving a 154.81 Bolivar drop in value of the first currency, as the government supports its fiat, with Silver now at 174.282 knocking off a hefty 50.94 in Bolivar value. In Argentina, the first currency’s price now stands at 88,664.54 showing a drop of 92.55 Peso’s with Silver at 1,040.96 Peso’s losing 30.38 A-Peso’s overnight. In Turkey, the Lira now has Gold pegged at 8,559.02 showing a loss of 67.12 T-Lira with Silver losing 2.707 with its price at 100.455 T-Lira.   

More…

Posted at 9:06 AM (CST) by & filed under USAWatchdog.com.

By Greg Hunter’s USAWatchdog.com

Edward Griffin, author of the wildly popular book about the Federal Reserve “The Creature from Jekyll Island,” is holding a conference this weekend called “Red Pill Expo.” It is all about waking people up from the illusions they are being told. Griffin explains, “The illusions are in health, in politics and in education. The illusions are in the media, in money and in banking, which is my specialty. So, people are coming, some of whom are informed, but most respond to the slogan we are using for the “Red Pill Expo,” and the slogan is ‘Because you know something is wrong.’ That sort of spells it out for most people, not just in America, but for people all over the world. People everywhere are being fed propaganda, lies and false stimuli of all kinds, but deep in their hearts, deep in their instincts, they know something is wrong.”

What’s wrong in the financial world with the longest expansion in history and the Fed starting QE (money printing) again? Griffin says, “We are living in a system of the banks, by the banks and for the banks, and that is the reality. . . . They see that the wheels are coming off. . . . The system of inflation in which we live cannot go on forever. . . . All systems of exponential growth always collapse. They come to an end at some point, and it’s hard to tell exactly at what point, but you do know there is a breaking point where it just moves beyond reality. The banks know this better than anybody. So, I am assuming that they feel they are at the end. You can smell it. You can see it. You can touch it almost. So, what do you do? . . . I think their thinking is, hey, we are at the end and let’s just grab all we can so when the system collapses, we will be okay. That is kind of a crude way of putting it, but I think they are going for broke because they know it is broke, and there is not much they can do about it.”

More…

Posted at 11:06 AM (CST) by & filed under In The News.

J. Johnson’s Latest – Apparently, Physical Silver Is Priceless!
November 5, 2019

 Great and Wonderful Tuesday Morning Folks,   

      Gold is lower in the early morning with the trade at $1,501.80, down $9.50 and right beside its low at $1,500.40 with the high at $1,511.90. Silver is still following with its trade at $17.96, down 9.6 cents and it too right beside its low at $17.94 with the high not that far away at $18.085. With the drop-in precious metals price, one would think the Dollar is in a super rally but alas, the fiat is up only 12.4 points with the trade at 97.48 and right beside its high at 97.50 with the low down at 97.275. All of this was done during London’s trading period, before 5 am pst, the Comex open, and the London close.   

      We apparently have a mishmash occurring in the emerging currency markets with the Venezuelan Bolivar rising causing Gold’s price to drop with the trade at 14,999.23 Bolivar, losing 133.83 in value with Silver at 179.376 down 1.897 Bolivar. In Argentina, where the zeros have yet to be lopped off the currency’s value (like Venezuela did a few years ago), Gold is now trading at 89,590.04 showing a loss of 794.18 A-Pesos with Silver at 1,071.34 it too losing 11.34 A-Pesos. In Turkey, the Lira now has Gold gauged at 8,626.14 Lira giving the holders of Gold a 6.61 T-Lira gain with Silver at 103.162 showing a lose of 0.085 in T-Lira value.    

      The November Silver Deliveries continue to confound me with its Open Interest numbers, which legally requires 100% margin in order to hold a position in the contract. Truly there can’t be someone trying to day trade inside the delivery month, the lack of liquidity is suicide to the day trader, so what are these numbers about? November Silver’s delivery count is now at 23 contracts waiting for receipts and with a Volume of 1 up on the board, and once again with no price. Yesterday, the Open Interest was at 16 which proves a 6 lot “buy”. So, where is the price for this increase in deliveries? Is Silver truly Priceless? Sometime during yesterday’s Comex trading period, the Volume went from Zero to 23 and with No Price once again! Spread trade, exit or entry, new purchases, yada yada yada, all require a price in order to sustain the math, yet even those people that work on the exchange cannot answer what is going on, and we’re supposed to trust the numbers? Not!   

More…

Bill Holter’s Commentary

Deutsche Bank is a dead man walking and will be far more meaningful than Lehman when they finally do go down. There were rumors last week of their bankruptcy, and now more rumors today. No matter how they paint the tape in precious metals today, the $64 trillion question when DB does go down is …got gold?

The Deutsche Bank Death Watch Has Taken A Very Interesting Turn
November 5, 2019

Authored by Michael Snyder via The Economic Collapse blog,

The biggest bank in Europe is in the process of imploding, and there are persistent rumors that the final collapse could happen sooner rather than later.  Those that follow my work on a regular basis already know that this is a story that I have been following for years.  Deutsche Bank is rapidly bleeding cash, they have been laying off thousands of workers, and the vultures have been circling as company executives desperately try to implement a turnaround plan.  Unfortunately for Deutsche Bank, it may already be too late.  And if Deutsche Bank goes down, it will be even more catastrophic for the global financial system than the collapse of Lehman Brothers was in 2008.  Germany is the glue that is holding the EU together, and so if the bank that is right at the heart of Germany’s financial system collapses, the dominoes will likely start falling very rapidly.

 

 

 

 

 

 

 

 

 

There has been a tremendous amount of speculation about Deutsche Bank over the past several days, and so let’s start with what we know.

More…

Posted at 9:18 AM (CST) by & filed under In The News.

J. Johnson’s Latest – Comexian Antics, Bank Failures, and The Power Of Print Failing!
November 4, 2019

Great and Wonderful Monday Morning Folks,   

      Gold is trading higher again as we wait for the “Comexian Antics” to start with the December trade at $1,515.20, up $3.80 with the high close by at $1,516.50 and the low at $1,510.80. Silver is up as well and equally unmoving as Gold with the December contract at $18.15, up 9.8 cents with the high at $18.18 and the low registered at $18.045. The US Dollar, which needs to be printed in order for the banks to keep Silver, Gold, and all commodities at bay, is now valued at 97.11, up 6.9 points and close to the high at 97.155 with the low just below the Maginot line at 96.975. All of this happened after daylight savings time, before 5 am pst, the Comex open, and the London close.   

      Gold in Venezuela is now priced at 15,133.06 Bolivar, proving a gain of 23.97 in value with Silver now priced at 181.273 it too gaining 0.25 of a Bolivar. In Argentina, the Peso has Gold’s value pegged at 90,384.22, a gain of 284.62 Peso’s since Friday’s early morning quote with Silver at 1,082.68, a gain of 2.99 A-Pesos. In Turkey, their currency, the Lira, now has Gold’s value pegged at 8,619.53 Lira, gaining 40.49 with Silver losing 0.554 in T-Lira value with its early morning price at 103.247 Lira.    

      Once again the “Comexian Antics” are carried forward as we still question the Comex numbers when it comes to the real factor of deliveries with the November Silver Demand Count now at 16 fully paid for contracts waiting for receipts proving a drop of 60 obligations and with no price given all day Friday and so far today as well. Were these demands for physical Silver delivered here, or in London, or is it one of those Comex things that is no one else’s business?     

More…

Citi Predicts The Greenback Could Weaken ‘Substantially’ — To As Low As 85 On The Dollar Index
November 1, 2019

The U.S. dollar index could fall to as low as 85 as the Federal Reserve grows its balance sheet again by purchasing more bond assets, a Citi strategist said Thursday.

“Our latest projections are that it would weaken even further — maybe to the high 80s, perhaps even as low as 85,” Mohammed Apabhai, head of Asia Pacific trading strategies group at Citi, told CNBC’s “Street Signs.” Technical analyst Daryl Guppy said last year that 85 is a “historical support level” for the dollar.

The dollar index is a measure of the greenback’s value relative to a basket of currencies, largely made up of the United States’ most significant trading partners.

The Fed increases its balance sheet by buying up bonds and Treasurys as a way of pumping cash into the market. That in turn makes bond yields — which move inversely to prices — drop as the bond prices rise. The dollar usually weakens when bond yields fall.

More…

Posted at 9:15 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

On Saturday, Denny asked what Turkey’s breaking with NATO would mean for the USA as the former world leader.

Dave

Post-Trump, Macron Is Enlightened And Sochi Is The New Washington
November 2, 2019

Now that it’s all over but the shouting, a few people need to be thinking about the future, as Trump’s long-delayed impeachment gets underway. In the US, this will be a difficult exercise, due to the riveting, minute by minute coverage of a process that will continue for months, leading into the 2020 presidential election. However, on a positive note, America’s soap opera is forcing Europeans to begin a process that that has been delayed since the fall of the Berlin Wall and the dissolution of the Soviet Union.

Decades after these earth-shattering events, Europe is weakened by the triple difficulties of immigration, right-wing populism and continued obedience to Washington. As French President Emanuel Macron takes over from Angela Merkel’s decades-long leadership, Europe is no longer a model for social-democracy, but a cacophony. Although France is ‘the US’s closest ally after Great Britain’, only the website of a Russian-American known as The Saker publicized Macron’s recent, stunning acknowledgement that the world is fundamentally changing. In a yearly speech to France’s Foreign Ambassadors that reflects an education system based upon the rigorous analysis of complex ideas, (incarnated in the ‘dissertation’ that even science majors must master) forty-one year-old Macron announced that the international order is being shaken to its roots “by the great upheaval taking place for the first time in history.”

More…

 

Jim/Bill,

On Saturday, we talked about gun barrel diplomacy.

Dave

China Breaks The Western Debt Stranglehold On The World
November 2, 2019

The difference between the west and east is stark. While anybody and any country that does not agree with the US dictate and doctrine, risks being regime-changed or bombed, China does not impose her new Silk Road – the BRI – to any country. China invites, respecting national sovereignty. Who wants to join is welcome to do so. That applies as much to the Global South, as it does to Europe.

China’s President Xi Jinping launched the BRI in 2013. In 2014 Mr. Xi visited Madame Merkel in Germany, offering her to be at that time the western-most link to the BRI. Ms. Merkel under the spell of Washington, declined. President Xi returned and China continued working quietly on this fabulous worldwide economic development project – BRI – THE economic venture of the 21st Century, so massive that it was incorporated in 2017 into the Chinese Constitution.

More…

 

Jim/Bill,
Ever wonder why skyscrapers aren’t built 200, 300, 500, or more stories high?
The foundation can’t support them.
No different with debt.
Collapse is imminent.
This is a chart worthy to hang on your wall for a continual reminder of our precarious position:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

And this one points to the growing fear pervasive at the FED:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Be afraid. VERY afraid.
CIGA Wolfgang Rech

The ‘Mother Of All Bubbles’ Could Blow Up The Economy If Profits Don’t Improve, Warns Blackstone Strategist
November 4, 2019

“When we try to pick out anything by itself, we find it hitched to everything else in the universe,” wrote famed naturalist John Muir more than a century ago, referring to an epiphany he had while hiking in California’s Yosemite Valley.

In our call of the day, Blackstone BX, -1.04% strategist Joseph Zidle offers a similar take, but with dollar signs instead of granite cliffs.

“At the end of any economic cycle, we often get warnings that appear to be unrelated,” he wrotein a recent not. “It’s in hindsight that we realize that they were not at all random.” Investors saw this during the runup and aftermath of the housing bubble, he added, and we’re seeing it now.

Among the recent troubles he thinks are connected are repo market woes, negative-yielding debt, global trade conflicts and collapsing manufacturing. And every cycle ends with excess.

More…

 

Bill/Jim,

When JPM begins forfeiting higher yields from corporate lending, and parks its stash in 1.5% government bonds, it should send a red flag to all.

Expect a wave a defaults.  Not that “govvies” will protect them should yields soar on oversupply, but at least they’ll have a more liquid exit door.

This is NOT the bull market and roaring economy we are led to believe.

CIGA Wolfgang Rech

As I wrote in my article for subscribers today, “don’t listen to what they say, watch for what exactly they are doing”!

Bill

JPMorgan Pours $130bn Of Excess Cash Into Bonds In Major Shift
November 3, 2019

JPMorgan Chase has pushed more than $130bn of excess cash into long-dated bonds and cut the amount of loans it holds, marking a major shift in how the largest US bank by assets manages its enormous balance sheet. The moves, which have seen the bank’s bond portfolio increase by 50 per cent, are prompted by capital rules that treat loans as riskier than bonds. As it continues to return billions of dollars to shareholders in dividends and share buybacks each year, JPMorgan has less room than some rivals to hold riskier assets.

More…

Posted at 7:47 AM (CST) by & filed under Bill Holter.

The world is awash in debt while interest rates are extremely low and at unprecedented levels. Interest rates have been engineered lower by central banks out of necessity. This “necessity” is not so much to spur the real economies on (as they say), rather, rates have been crushed to facilitate the payment of debt service. Bluntly, there would be no financial markets left if rates were at a historical norm of say 7%. The danger of course is that rates do go higher…! What if interest rates do go up? This is a question no one even asks anymore.

This is not to say central banks will ever willingly raise rates around the world. They will not, they cannot! However, there are scenarios where market rates go up all over the world in the face of and in spite of central banks. This could occur for a myriad of reasons but I believe the prime possibilities to be a currency crisis where a major currency or currencies begin to lose purchasing power rapidly, or a major default or a domino of defaults.

Thinking this through, were a major currency to collapse versus other fiats, interest rates would need to rise in that particular region to “risk adjust”. Additionally, were ALL currencies collectively lose purchasing power (think versus gold/silver “going up”), interest rates would also need to rise to risk adjust. You might want to read the previous sentence a couple of times because THIS is exactly why gold and silver have been sat on all these years, to prevent the perceived need for rates to go higher to adjust for currency risk.

Looking at the default issue, as bonds go through the process of defaulting, their prices drop. Lower bond prices mean higher yields, simple related math. If a sector or even sovereign region threaten to or actually default, rates associated will go higher. Should a default begin and turn into a global domino series, rates everywhere will go higher unless central banks buy everything sold and hold in their portfolio defaulted credits (as they did in 2008). In reality, this is exactly what caused the problem in the first place, central banks buying up everything in sight…including stocks!

More…

Posted at 10:47 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

Key words, both party’s and the media.

Dave

The Political Parties & The Media Have Abandoned The Working “Middle Class”
October 31, 2019

. . .

What differentiates classes now is debt, employment security and the ability to build household capital that isn’t just a sand castle of speculative bubble “wealth.” The worker with tradecraft skills (welding, logger, etc.) has more security and earning power than a college graduate with few skills that can’t be outsourced or automated.

Many college graduates work in sectors that are highly exposed to layoffs and downsizing once the economy contracts: food and beverages, hospitality, etc.

All of which leads us to a highly verboten conclusion: both political parties and the corporate media have abandoned the 2/3 of the workforce that is working/middle class. The bottom 20% dependent on government transfers has more security than those earning just enough to disqualify the household for transfers, while the top 15% in the Protected Class are doing just fine unless they’re over-indebted.

The winner take most class and the wealthy dominate both political parties and the media which is now dependent on advertising that appeals to the top 10% of households that collect more than 50% of the national income.

The political parties take care of the government dependent class to keep the rabble from rebelling, and they keep the government gravy train flowing to the Protected Class (healthcare, national defense, academia, government employees) to insure their support at election time, but they take their marching orders from the Aristocracy / Oligarchy that fund their campaigns and enrich them with $100,000 speaking fees, seats on the board of directors, etc.

More…