Posted at 9:05 AM (CST) by & filed under Jim's Mailbox.

Bill,

I am sure any minute China will back down? Not a chance.

They would lose face at home and that can not happen.

Dave

China’s Wei Threatens ‘Fight To The End’ With US
June 1, 2019

China’s top security official on June 2 articulated an uncompromising defense of his country’s stance on the contested South China Sea and threats to invade Taiwan in an anticipated address at a top security conference in Singapore.

“Building facilities on one’s own territories is not militarization,” Lieutenant General Wei Fenghe said, responding to accusations that China has militarized islands in the sea as a means of taking effective control of what the US and others regard as international waters.

Wei also warned of a “fight to the end” with the US in their escalating trade spat, and a “fight at all costs” for “reunification” with Taiwan, the island nation China considers a renegade province. The US has recently upped its strategic support for the democratically-run nation, much to Beijing’s chagrin.

“No attempts to split China will succeed. Any interference in the Taiwan question is doomed to failure,” said Wei, dressed in his uniform of a general in the People’s Liberation Army (PLA).

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Posted at 1:08 PM (CST) by & filed under USAWatchdog.com.

June 2, 2019

By Greg Hunter’s USAWatchdog.com (Early Sunday Release)

Investment advisor and former Assistant Secretary of Housing Catherine Austin Fitts says when it comes to making government accounting secret, there is widespread bipartisan support. We are talking about the new rule from the Federal Accounting Standard Advisory Board (FASAB rule 56) that took government accounting dark. Fitts explains, “If you look at FASAB rule 56, it was approved by both the (Trump) Administration and the bipartisan (Congress) on the same week that everybody was screaming about Judge Kavanaugh. It was passed we had all the hearings on Mr. Kavanaugh’s teenage sex life. At the same time everybody supposedly looks like they are fighting, we had a bipartisan Congress and Administration pass this very quietly underneath the attention given to the Kavanaugh hearings.”

Why did both parties “quietly” pass FASAB rule 56 that makes federal budgets secret? Fitts says, “Since WWII, we have been building secret financial operations, whether it’s the ‘Black Budget’ or what some people call the ‘hidden system of finance.’ Secrecy is a huge financial addiction. I think every member of Congress does not see a way to kick the can down the road without becoming more and more extreme in tactics. I called FASAB 56 ‘secret money for secret armies.’ The same week that passed, an ad came out in one of the mercenary magazines that said ‘Blackwater is coming.’”

Just because trillions of dollars are “missing” and the federal budgets are now “secret” doesn’t mean you cannot see the effects of all the massive amounts of money created. It’s is showing up in the form of inflation, not official inflation calculated by the government, but real inflation for the man on the street. Fitts contends, “The U.S. dollar is getting debased. . . . Inflation is already here. If you are looking at an area with a 14% increase in the cost of goods year over year and your income isn’t rising, or it’s falling, we are already there. It’s not hyperinflation, but it is very significant inflation. It you look at the controls they have put on globally to fight inflation, they are quite significant. The U.S. debt went up 6% last year, and it’s estimated to go up 8% this year. God forbid we try to start any of the wars rattling around the world because the debt will skyrocket. We are in a spiral upward on the amount of debt. Next year, the social security fund will go negative cash flow. In other words, it’s going to stop being a net buyer of Treasuries and is going to be a net seller of Treasuries, which means if the foreigners are not buying, it’s down to the U.S. pension funds and the Fed.”

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Posted at 10:26 AM (CST) by & filed under In The News.

J. Johnson’s Latest – Next Week Should Be Something To Behold!
May 31, 2019

 Happy Friday Morning Folks,   

      Gold starts the morning off higher with the trade at $1,302.10, up $9.70 after reaching up to $1,304.20 with the low at $1,292.50. Silver is still signaling with its trade at $14.485, down .6 of a cent right by the low at $14.46 with the high at $14.54, inside an 8 cent trading range with the reminder that humans should never short a quiet market. The US Dollar is going nowhere as well, with the trade at 97.995, down 5.8 points with its high at 98.085 with the low at 97.86. All of this activity already happened before 5 am pst, the Comex Open, and eventually a London close.   

      Our emerging markets view of Gold is showing the Nobel metal to be trading at 13,004.72 Bolivar, a gain of 198.75 overnight with Silver under the same conditions at 144.669, showing the continuing gains of .35 Bolivar. Argentina’s Peso now has Gold pegged at 58,018.87, regaining in “spike fashion” an additional 1,044.390 in Peso value. Silver under the Peso, is now priced at 645.366, gaining 3.332 in value, giving us hope this may be another turning point indicator to ponder that may help us out on the next rush up in price under the strained effects of the US Dollar. Turkey’s ties with the Dissolving European Union now shows Gold priced at 7,626.60 Lira gaining 79.79 in value with Silver pegged at 84.8224, still losing .2228 in T-Lira value.    

      May deliveries closed out 2 days ago with some of our data being delayed. Once given, it helped clear some of the questions we had as COMEX delivered 216 receipts proving the buy was real, and at the last moments in the scheduling. Now we wonder about those EFP’s to London and what the purpose is there?  June Silver’s Delivery demands now show a count of 253 contracts, fully paid for and waiting for receipts and with a Volume of 10 up on the board so far this morning, proving a drop of some 53 obligations during yesterday’s trades. Silver’s Overall Open Interest fell some more during the previous trade with the count now at 212,851, proving a loss of 772 more shorts in order to stay the price.    

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Posted at 10:53 AM (CST) by & filed under In The News.

Someone Seems To Be Working Overtime, In Precious Metals
May 30, 2019

 Great and Wonderful Thursday Morning Folks,  

       Gold is trading lower this morning, that’s because yesterday was a positive day and it seems the rules of the exchange is “No Two Day Rallies Ever” with Gold now at $1,282.20, down $4.20 inside another tight trading range after the trade was pushed down to $1,279.20 with a high at $1,285.10. Silver is still signaling the Algos with its trade down 3.8 cents at $14.45 with the high at $14.485 and the low at $14.42, a trade swing of only 6.5 cents (someone seems to be working overtime). The US Dollar, the global currency lynch pin to it all, is now valued at 98.055, up 2 points after reaching up to 98.145 earlier with the low at 98.00. Of course all this is done way before America trades aka the Comex Open, and before the London Close.    

      The Emerging Currencies Market is showing Gold priced under the Venezuelan Bolivar to be trading at 12,805.97, taking back 62.92 Bolivar from yesterday’s gains with Silver at 144.319 gaining .998 in the overnight. The Argentine Peso now has Gold pegged at 56,971.28, losing another 588.77 of A-Peso value with Silver at 642.034 regaining 1.018 Pesos as the Silver Signal points higher under these 2 South American currencies. Turkey, which is closely aligned to the European mess now has Gold pegged at 7,546.81 proving a loss of 195.49 in T-Lira value with Silver at 85.0452 losing another 1.1704 in value.    

      Yesterday was the close out day for the May deliveries with the final count for physical Silver demands showing 194 fully paid for 5,000 ounce contracts waiting for receipts. Only 1 more purchase was made during the day but Harvey Organ’s count shows a settling of 119 leaving a balance. Hmmm, if we had a CFTC commissioner who was actually able to be reached and respond to our requests, we would ask them how this could be, then ask them about those Emergency EFP’s going to London these past few years and if they are really for physical deliveries or another part of the hidden paper play? But alas, these commissioners are not here to help us understand the play, they’re here to do something else. June Silver is now our delivery focus with the starting count at 306 obligations with a volume of 27 up on the board so far this morning. It is very possible that the 27 volume in June is an agreed upon rollover with more to come, time will tell, maybe.  Apparently, yesterday’s rally was all about the shorts exiting their trades as the Overall Open Interest lost 7,140 overnighters in order to stay the price with a possible measure of how much of a spike Ag would make since the longs are refusing to exit their positions, leaving the shorts in trouble. This is what we want to see, hopefully the longs, that have “stayed the trade”, are as serious about their positions as the physical buyers are, who have been sopping up as much physical at these prices, knowing full well the future will be counting Silver with a much higher US$ value.     

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Bill Holter’s Commentary

This was only a matter of time…

Malaysia Proposes Common Asian Gold-Backed Currency
May 30, 2019

For years, gold bulls had speculated that China has been quietly piling up physical gold, awaiting the moment to unveil a gold-backed currency, either after the dollar’s reserve status falters or before.

Today, the Malaysian Prime Minister Mahathir Mohamad took one large step in that direction when he proposed the launch of an Asian version of the euro: a common trading currency for East Asia that, unlike the euro, would be pegged to gold, describing the existing currency trading in the region as manipulative (perhaps in reference to China’s currency setting framework).

According to the Malaysian PM, the proposed common currency could be used to settle imports and exports, but would not be used for domestic transactions.

“In the Far East, if you want to come together, we should start with a common trading currency, not to be used locally but for the purpose of settling of trade,” he said at the Nikkei Future of Asia conference in Tokyo. “The currency that we propose should be based on gold because gold is much more stable.”

He said under the current foreign exchange system, local currencies were affected by external factors and were manipulated. He did not elaborate on how they were manipulated, and whether his complaint was against the dollar or the yuan. That said, Mahathir has long been a critic of currency trading, and according to Reuters, he once accused George Soros of betting against Asian currencies.

Incidentally, during the Asian financial crisis two decades ago, Mahathir pegged the ringgit currency at 3.8 to the dollar and imposed capital controls. That peg was scrapped in 2005.

Earlier this week, the Trump administration said that no major trading partner met the criteria required to be placed on the U.S. Treasury Department’s list of its currency manipulators, it named Malaysia among nine countries that required close scrutiny. In response, Malaysia’s central bank said on Wednesday its intervention in currency markets was limited to managing excessive volatility.

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

Jim/Bill,

Banking issues slowly creeping into public view.

Certainly most are aware of Deutsche Bank’s $50 trillion derivative exposure and the roughly $6.40 share price target that people say could trigger a panic.  Currently DB is trading $6.88

However, problems don’t necessarily have to be relegated to the majors.

Remember Credit – Anstalt?

 

 

 

 

 

Run Louis (Louis Nathaniel de Rothschild)! Run!

CIGA Wolfgang Rech

PBOC Panics, Floods Market With Liquidity As Interbank Funding Freezes After Baoshang Seizure
May 29, 2019

With China’s bond market continues to be hammered in the aftermath of the government’s surprise seizure of Baoshang  Bank (see “A Big Wake Up Call”: Chinese Bond Market Roiled By First Ever Bank Failure”), the PBOC – whose open market operations had been in dormancy for much of 2019 – finally panicked and on Wednesday injected a whopping net 250 billion yuan ($36 billion) into the financial system via open-market operations, as it fills what traders have dubbed a growing funding gap following the Baoshang failure.

 

 

 

 

 

 

 

 

The consequences of this liquidity flood were instant: China’s overnight repurchase rate, a measure of interbank liquidity, tumbled the most in three weeks, while the benchmark 7-day repo rate also declined.

 

 

 

 

 

 

 

 

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Americans’ Life Savings Wiped Out In Mexican Bank Fraud Scheme
May 29, 2019

A Bloomberg report reveals how a Mexican bank employee directed a retirement fraud scheme at American retirees living in San Miguel de Allende, a city in Mexico’s central highlands.

 

 

 

 

 

 

 

 

 

Monex Casa de Bolsa SA de CV Monex Grupo Financiero has been investigating allegations that an employee stole approximately $40 million from American clients.

Marcela Zavala Taylor, the suspected Monex banker at the center of the fraud, allegedly sent American clients falsified statements that showed their accounts were fully funded, said several of the bank’s clients in a Bloomberg interview.

The fraud was discovered in late December when clients couldn’t retrieve funds from their accounts. Bank officials told clients that $40 million in funds from 158 accounts disappeared.

Bloomberg spoke with several clients who said Monex attempted to reach settlements at a massive discount versus what was stolen from their accounts. Others said the bank asked them to file charges against Zavala.

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Jim/Bill,

This headline says it all…….

Stocks Slammed As Credit Cracks, Retail Routed, Yield Curve Craters

Looking at the news items over the last 24 hours makes you wonder…..is there anybody we aren’t picking a fight with?

CIGA Wolfgang Rech

Russia Slams “Crude Provocation” Nuclear Testing Accusations By US

China Accuses US Of “Naked Economic Terrorism,” Will “Fight Until The End”

Chinese Activists Urge War With US ‘Until Pacific Ocean Splits In Two’ 

Iran’s Oil Exports Plunge To 400,000 Bpd In May

Trump Risks New Front In Trade War As Talks With Europe Falter

US Threatens Europe With “Loss Of Access To US Financial System” Over SWIFT-Evading Iran SPV

US Troops To Be Based In Saudi Arabia, Qatar Against “Iran Threat”

Footage Captures Arms “Rat Line” On “Mysterious Planes” Fueling Libya War 2.0

Posted at 10:44 AM (CST) by & filed under In The News.

Silver Is The Most Manipulated Market Out There (And For A Reason)
May 29, 2019

Great and Wonderful Wednesday Morning Folks,   

      Our first paragraph of the day is all about the positive in precious metals under the US Dollar, with Gold’s trade at $1,288.50, up $6 and close to the high at $1,290.30 with the low at $1,283.80. Silver is following, like a spoiled child being dragged along, with its trade at $14.35, up 3 cents inside an 8 cent trading range between $14.40 and $14.32. Even the US Dollar is still in a positive with its trade at 97.895, up 5.3 points with a more volatile trading range, with its high so far at 97.94 and a low at 97.75. All of this of course is done while we sleep, before 5 am pst, before the Comex opens, and the London close.      

      Our emerging markets currency watch shows Gold’s price under the Venezuelan Bolivar to be trading at 12,868.89 gaining back 6.99 Bolivar with Silver’s trade at 143.321 losing an additional 1.148 Bolivar since yesterday’s quote. Argentina’s Peso now has Gold priced at 57,560.05, losing 6.764 with Silver at 641.016 A-Pesos, losing 6.267. The Turkish Lira has Gold pegged at 7,742.30 it too losing 24.71 Lira overnight with Silvers price at 86.2156 losing 1.0411 Lira. It seems the emerging markets are still holding all the volatility for now but that will change in time.   

      The May Silver Deliveries are still in play with the Demands for Physical at 194 fully paid for positions proving a drop of 25 contracts in yesterday’s trading activity. What is not shown is the Volume during yesterday’s trade which totaled 97 with Harvey Organ evidencing 77 of these notices being delivered during the trading day. This is telling us the demands are still there and someone is stepping in at the very last moments, to make sure their orders do not stay in the hands of the bankers for very long and at the same time, proving there is still product to play with (for now).    

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