Posted at 9:12 AM (CST) by & filed under Jim's Mailbox.

We all thank you for your graphics Dave! Intended or not, your last chart is illuminating, one who values gold in dollars, euros, yen, or sheckels has it backwards…fiat is measured by the weight of gold or silver!

‘We now live in a world where doctors destroy health, lawyers destroy justice, universities destroy knowledge, governments destroy freedom, the press destroys information, religion destroys morals, and the banks destroy the economy.’ Chris. Hedges. (1956-    ).

Posted at 4:55 PM (CST) by & filed under Jim's Mailbox.

Wealth disparity shown in pictures.

Bill

‘This is the tendency of all human governments. A departure from principle becomes a precedent for a second; that second for a third; and so on, till the bulk of society is reduced to mere automatons of misery, to have no sensibilities left, but for sinning and suffering. And the forehorse of this frightful team is public debt. Taxation follows that, and in its train, wretchedness and oppression.’ Thomas Jefferson. (1743-1826).

Posted at 9:26 AM (CST) by & filed under General Editorial.

He can tell you this now…because he is retiring!

Courtesy of JB.

Bill

There’s “Way Above-Average Speculation”, Retiring Boss Of Massive US Fund Warns Retail Investors To “Step Away From Risk”
December 27, 2021

Even The Fed has finally been forced to admit the market is trading at ‘elevated levels’, and is “vulnerable to large declines.”

So when the CEO of one of the largest active US fund managers tells investors to “step away from risk” to avoid being burned in increasingly speculative markets, it is perhaps time to start paying attention as the S&P makes it 69th record high this year, pushing its valuations to ’11’ on the Spinal Tap amplifier of ‘overvaluedness’.

$1.6 trillion fund group T. Rowe Price CEO Bill Stromberg, who is retiring at the end of the year, cautioned in an interview with the Financial Times that “over [the] last two years there has been a way above-average amount of speculation, adding that “we’ve been in a cycle where there has been very free-form risk-taking.”

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Posted at 8:40 AM (CST) by & filed under Jim's Mailbox.

It looks like Dismal Dave needs cold beer for the holidays?

Bill

‘If government wishes to see a depression ended as quickly as possible, and the economy returned to normal prosperity, what course should it adopt? The first and clearest injunction is: don’t interfere with the market’s adjustment process.

‘The more the government intervenes to delay the market’s adjustment, the longer and more gruelling the depression will be, and the more difficult will be the road to complete recovery.’ Murray Rothbard. (1926-1995).

Posted at 8:35 AM (CST) by & filed under General Editorial.

Bill Holter’s Commentary

Wait, what? What about the “petrodollar”?
Saudi Arabia Is Building Ballistic Missiles With China’s Help
December 24, 2021

Authored by Dave DeCamp via AntiWar.com,
CNN reported on Thursday that US intelligence agencies have concluded Saudi Arabia is now actively manufacturing its own ballistic missiles with the help of China.

As the world’s largest importer of arms, Saudi Arabia has purchased ballistic missiles from China in the past but has not previously had the ability to manufacture them.

Unnamed sources told CNN that US officials at several agencies have been briefed in recent months on “on classified intelligence revealing multiple large-scale transfers of sensitive ballistic missile technology between China and Saudi Arabia.”

In a statement to CNN, China’s Foreign Ministry said the two countries are “comprehensive strategic partners” and “have maintained friendly cooperation in all fields, including in the field of military trade.”
“Such cooperation does not violate any international law and does not involve the proliferation of weapons of mass destruction,” the statement said.

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Posted at 9:23 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

No danger here…what could possibly go wrong?

OCC Report Shows JPMorgan Chase Owns 62 Percent of all Stock Derivatives Held at 4,914 Banks in the U.S.
December 23, 2021

The Office of the Comptroller of the Currency (OCC), the regulator of national banks that operate across state lines, released a report on Monday that details the quantity and variety of derivatives held by commercial banks, savings associations and trust companies as of September 30. (According to the Federal Deposit Insurance Corporation, there were 4,914 commercial banks, savings associations and trust companies operating in the U.S. with FDIC insurance as of September 30.)

The striking detail in the OCC report is that one taxpayer-backstopped, federally-insured bank, JPMorgan Chase Bank N.A., is for some unfathomable reason sitting on 62 percent of all stock (equity) derivatives held at all 4,914 federally-insured banks in the United States. The second striking detail is that this federally-insured bank’s holdings of stock derivatives come to a notional amount (face amount) of $3.3 trillion. (Yes, trillion with a “t.” See above chart.) And the third striking detail is that 74 percent of JPMorgan Chase’s stock derivatives are not centrally-cleared but instead are opaque, over-the-counter (OTC) contracts – highly likely beyond the scrutiny of bank regulators.

Why is any taxpayer-backstopped bank in the United States allowed to own anything near a trillion dollars in stock derivatives, let alone a bank like JPMorgan Chase that has admitted to an unprecedented five criminal felony counts brought by the Justice Department in the past seven years, with three of those felony counts for rigging markets.

The Dodd-Frank financial reform legislation of 2010 promised Americans two things pertaining to derivatives. First, it promised that federally-insured banks would no longer house the derivatives that blew up much of Wall Street and the U.S. economy in 2008. This was known as the “push-out rule” where derivatives were to be pushed out to other parts of the bank holding company which could be wound down in case of insolvency, without impacting the federally-insured bank – or so the theory went. That promise was derailed in December 2014 when Citigroup (the recipient of the largest bailout in U.S. history during the 2008 financial crisis and its aftermath) was able to get its pawns in Congress to repeal the push-out rule by attaching an amendment to a must-pass spending bill to keep the government running. (See our report: Meet the Two Congressmen Who Facilitated Today’s Derivatives Nightmare at Wall Street’s Mega Banks.)

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