Posted at 10:25 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

Please watch Doc Dave Janda, General Michael Flynn knows where all the bodies are buried…I don’t believe this gets swept under the rug!

J. Johnson’s Latest – FOMC Starts Today Putting To Sleep The Precious Metals
September 17, 2019

Great and Wonderful Tuesday Morning Folks,   

      It’s the start of the FOMC 2 day gala, with the precious metals being are allowed to trade, but not higher with Gold at $1,508.40, down $3.10 after dipping down to $1,500.90 before recovering with the high close by at $1,509.20. Silver is following along with its trade at $17.92, down 10.6 cents (after testing support response) with the bottom at $17.82 and a high to beat at $17.98 before we head towards yesterday’s Comex closing price at $18.025. The Currency rollover is mostly complete (with the Canadian Dollar rolling out today) placing the December US Dollar value at 98.150, down 2.5 points and close to the low at 98.12 with the high at 98.290. All of this flat activity happened before 5 am pst, the Comex open, and the London close.   

      Our Emerging Markets Currency watch is showing Silver strengthening while Gold is still correcting. In Venezuela, the Bolivar is now pricing Gold at 15,065.15 losing another 32.99 in Bolivar value with Silver at 178.976 virtually unchanged from yesterday’s price. In Argentina, Gold is valued at 84,886.23 Peso’s, dropping 147.21 with Silvers trade at 1,008.34 showing a gain of 3.93 Peso’s. In Turkey, Gold is priced at 8,628.83 showing a loss of 16.21 Lira with Silver at 102.494 showing a 0.015 T-Lira gain.    

      September’s Silver Delivery demands now stands at 315 fully paid for contracts waiting for receipts proving a 74 count drop that were either delivered here or in London and with no trading range or Volume to report so far. Silver’s Overall Open Interest remains elevated but shows a good reduction on a strong rally day offering up the suggestion that shorts took out some of their upside risk potential. The Overall Open Interest now stands at 214,290 Overnighters proving a reduction of 2,762 from yesterday’s early morning count.

More…

Bill Holter’s Commentary

RICO? Criminal enterprise? Now how is the Fed going to carry out their activities in the gold market? A safe bet no one else will accept the “honor” of being their beard if it comes with jail time…Please notice the absence of Blythe Masters? Will she be a DOJ star witness? As I wrote yesterday, yes “times are changing”!

DOJ Accuses JPMorgan’s Precious Metals Trading Desk Of Being A Criminal Enterprise
September 17, 2019

Who would have thought that JPMorgan’s precious metals trading desk is the functional equivalent of the mafia, and that its one-time leader, Blythe Masters, was the mafia’s don? 

Well, almost everyone who didn’t mind being designated a conspiracy theorist for years. And now comes vindication, because this has just been confirmed by the DOJ, which accused the PM trading desks at JPMorgan of being deeply involved in what prosecutors described as a “massive, multiyear scheme to manipulate the market for precious metals futures contracts and defraud market participants.”

In an indictment unsealed on Monday morning, the DoJ charged Michael Nowak, a JPMorgan veteran and former head of its precious metals trading desk and Gregg Smith, another trader on JPM’s metals desk, in the probe. (Blythe Masters was somehow omitted).

“Based on the fact that it was conduct that was widespread on the desk, it was engaged in in thousands of episodes over an eight-year period — that it is precisely the kind of conduct that the RICO statute is meant to punish,” Assistant Attorney General Brian Benczkowski told reporters.

More…

Bill Holter’s Commentary

As we’ve told you for several years…it will be a credit event!

“Nobody Knows What’s Going On”: Repo Market Freezes As Overnight Rate Hits All Time High Of 10%
September 17, 2019

Back in the summer of 2013, China’s banking system was on the verge of collapse when its overnight repo rates briefly soared to the mid-20% range, prompting the central bank to take emergency intervention to avoid a funding freeze.

As of this morning, the US is halfway there.

After we reported yesterday that “something snapped” as chaos hit the report market, and the overnight repo rate exploded as high as 7% for a variety of reasons including:

  • elevated UST supply,
  • bloated dealer balance sheets and year-end regulatory constraints
  • a banking system near reserve scarcity,
  • investors selling bonds back to dealers, and
  • banks and money-market funds to make their quarterly tax payment

More…

Bill Holter’s Commentary

…so they are saying the manipulation of precious metals has been going on since before 2008?  Isn’t this what us tin foil hat whackos have said all along?  And didn’t the CFTC do an investigation where they found “nothing actionable”?  If DOJ truly wants to cook some crooked goose, maybe they should pull the “time and sales” reports on the days where 10 or 20 tons of gold hit the markets in 30 second time frames …ONLY THEN will we know who was behind the blatant naked short selling that suppressed prices.  “Spoofing” is for pikers and unknowing pawns will do prison time while those who authorized the naked sales of as much as 10% of global production in 5 minutes (MANY TIMES) will walk away scott free.  The problem of course is if you go after those at the top …they will likely squeal on those in government who “suggested” the strategy in the first place!

JP Morgan Blames Bear Stearns For ‘Criminal Enterprise’ At Precious Metals Trading Desk
September 17, 2019

Now that prosecutors have blamed what they have described as a criminal organization operating inside JP Morgan, it appears the largest bank in the US by assets is resorting to an old strategy for sloughing off accusations of corporate fraud: Blaming it all on an acquisition.

According to Bloomberg, two traders who joined JPM’s precious metals trading desk after the takeover of Bear Stearns helped introduce the illegal manipulation strategy known as ‘spoofing’ to their peers on the desk, including the bank’s now-former head of the bank’s precious metals trading desk, Michael Nowak, who was one of three employees charged with participating in an organized fraud yesterday. Though prosecutors allege that some of the desk’s employees were already engaged in ‘deceptive practices’.

 

 

 

 

 

 

 

 

 

 

 

More…

Posted at 10:13 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

First we have GM and their massive strike:

All work has stopped at more than 50 General Motors factories and warehouses in the U.S. More than 48,000 workers are on strike

https://news.yahoo.com/auto-workers-strike-against-general-224731305.html

Now the massive Kaiser Permanente Hospital System going on strike.

Funny how this doesn’t make the headlines.

Are we coming to the end of a 2 decade long moratorium on wage growth?  Are wage pressures beginning to ignite inflationary fires?

CIGA Wolfgang Rech

80,000 Kaiser Workers Plan 7-Day Strike That Will Affect California, 5 Other States
September 16, 2019

The Coalition of Kaiser Permanente Unions announced late Monday their roughly 80,000 workers will walk off their jobs as part of a seven-day strike beginning Oct. 14 in California, five other states and the District of Columbia.

“We believe the only way to ensure our patients get the best care is to take this step,” said Eric Jines, a radiologic technologist at Kaiser Permanente in Los Angeles. “Our goal is to get Kaiser to stop committing unfair labor practices and get back on track as the best place to work and get care. There is no reason for Kaiser to let a strike happen when it has the resources to invest in patients, communities and workers.”

Patients will see picket lines at Kaiser Permanente hospital, medical office buildings and other facilities in California as well as in Colorado, Washington, Oregon, Maryland, Virginia and D.C.

The Coalition of Kaiser Permanente Unions came together in the 1990s as a way to end devastating strikes that threatened to cripple the company and make it less competitive.

More…

Posted at 10:15 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

“Central banks are now all in and no longer even have the option of not protecting asset prices from falling” – Tyler Durden

“Liquidity Dies In Darkness”: Trillions In Assets Have No Financial Disclosure To Support Them
September 15, 2019

While there has been extensive discussion of the passive/ETF/index fund bubble, most recently by Michael “Big Short” Burry, who most recently joined the parade of skeptics warning of the implicit and explicit dangers the passive investing bubble carries with it, perhaps the most interesting angle of the ETF stampede into fixed income securities – which include junk bonds and leveraged loans in addition to the recent frenzy for investment grade debt – is the fact that a substantial portion of it now trades with virtually no fundamental information. In other words, assets are being bought (if not so much sold) simply to accommodate the flood of investor money, with no regard for actual financial data or corporate newsflow.

This is highlights in a recent note by TCW’s Chief Investment Officer of Fixed Income, Tad Rivelle, who currently manages some $170 billion in AUM, and who writes that as a result of the above, “not only have the debt markets ballooned in size, but the growth has come disproportionately from those segments of the debt market where financial disclosure is poor.”

As a result of this, Rivelle observes that “If democracy dies in darkness, so does liquidity in that embodiment of economic democracy, i.e., the capital markets.” His conclusion is jarring: this lack of underlying information, while ignored when the tide is rising, leads to an immediate collapse in liquidity when the selling begins and results in a scramble for information, to wit:

When information is scarce, investors must color in between the lines. That which is not known nor well quantified must be assumed or modeled. The door is therefore open to different investors reaching quite different conclusions about the underlying value of an asset leading, of course, to illiquidity.

More…

J. Johnson’s Latest – Are The Algos Prepared For This In Silver?
September 16, 2019

 Great and Wonderful Monday Morning Folks,   

      Gold is trading higher after that “unplanned” short attack on Friday failed miserably, unless they really wanted us to know they planned this ahead of time, with the trade now at $1,511.70, up only $12.20 after reaching up to $1,519.70 before the Algo’s came in to set things straight with the low down at $1,506.30. Silver is held in check as well and by the same Algo team with its trade at $17.92, up 35.1 cents after breaking thru and up to $18.065 with the low at $17.69. The September US Dollar trade, which ends today, is currently at 98.345, up 9 points and is literally at the high with the low at 98.055. All of this was done before 5 am pst, the Comex open, and the London close.   

      In Venezuela, Gold is now priced at 15,098.10, showing a loss of 25.97 Bolivar with Silver now gauged at 178.976 Bolivar proving a 2.996 loss in value. In Argentina, Gold is now priced at 84,739.02 showing a loss of 200.54 Peso’s with Silver now valued at 1,004.51 losing 17.64 in Peso value. Turkey’s Lira now has Gold priced at 8,645.04, it too losing from Friday mornings early price check by the tune of 61.08 T-Lira with Silver at 102.481 showing it lost 0.793 in T-Lira value. It must be remembered here that the drop in price occurred on Friday during Comex’s trading times and after my post. Precious metals are recovering from that “unplanned” Friday hit but has yet to fully restore its value. We still stay Resolute in our beliefs that the buyers are winning.   

      It looks like all the activity in the September Silver Deliveries last Friday was all about clearing demands off the board with the total count at 389 fully paid for contracts waiting for physicals here or in London showing a drop of 136 in count. So far this morning we have a Volume of 4 posted up on the board with no trading range. This is supposed to be a spread trader exiting a spread in the delivery month, which should have a price attached to it, but alas, those that break the rules are the ones that are supposed to enforce them.     

More…

Posted at 11:02 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

This was brought up on Saturday for listeners.

Dave

Recovered From Russian Servers: 2010, 9/11 And The Impossibility Of Flying Heavy Aircraft Without Training
September 13, 2019

Nila Sagadevan is an aeronautical engineer and a pilot.

There are some who maintain that the mythical 9/11 hijackers, although proven to be too incompetent to fly a little Cessna 172, had acquired the impressive skills that enabled them to fly airliners by training in flight simulators.

What follows is an attempt to bury this myth once and for all, because I’ve heard this ludicrous explanation bandied about, ad nauseam, on the Internet and the TV networks—invariably by people who know nothing substantive about flight simulators, flying, or even airplanes.

A common misconception non-pilots have about simulators is how “easy” it is to operate them. They are indeed relatively easy to operate if the objective is to make a few lazy turns and frolic about in the “open sky”. But if the intent is to execute any kind of a maneuver with even the least bit of precision, the task immediately becomes quite daunting. And if the aim is to navigate to a specific geographic location hundreds of miles away while flying at over 500 MPH, 30,000 feet above the ground the challenges become virtually impossible for an untrained pilot.

More…

Posted at 8:39 AM (CST) by & filed under USAWatchdog.com.

By Greg Hunter’s USAWatchdog.com (Click Here for Pt #1)

There is a new engineering analysis and investigation done by the University of Alaska that says on 9/11/2001, building #7 was a controlled demolition and did not fall because fire melted the beams. This new report totally contradicts the official story and reveals a gigantic lie the public has been told for the past 18 years. The mainstream media (MSM) is largely ignoring this ground breaking report. Why? Former CIA Officer Kevin Shipp, who is an expert on counter-intelligence, says, “This is shocking . . . . As always, they call everyone who looks into this a conspiracy theorist.  These 3,000 structural engineers who took part in this study are engineers and architects, are high level people, and many have PhD’s . . . and it was conclusively proven. I would urge people to read the University of Alaska study and also watch the video of tower #7 collapsing. I met with a structural engineer, and he said there was no way that building just collapsed. There was a freefall, and no way was that a fire on one of the floors. That was a controlled demolition.”

Shipp goes on to say, “Why are they (MSM) not covering it, I think, is the big question. . . . In one of my lectures, I show how the news media is controlled by the Shadow Government and the Deep State. The owners of these media companies are all connected to globalism. They do not want the true story of 9/11 coming out because of what it could mean. It could mean it was not terrorists on a plane and that it was an inside job from someone who planted explosives clearly in tower #7 and very possibly in the other two towers. They don’t want that coming out. Why? It could involve officials and parties within the United States. A lot of people cannot cross that psychological barrier because of what it means. I think it’s up at the University of Alaska because they were the only ones that would do it. The other universities are covering this up. They would not even let them come to their university, and I am talking Harvard and others. So, they went to University of Alaska, and they said yeah, let’s do it.”

More…

Posted at 10:28 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

Mr. Dimon is correct.  Hedge yourself.

“Preparing for an era of zero rates in the U.S. is part of the “normal course” of risk management, the CEO said.”

Because it may be coming…..free money globally!

And we all know there will be the Devil to pay!

Nothing, but nothing, is ever free.   A concept foreign to most.

Furthermore, we now have a culture embedded with false values.

“Some businesses would see no impact from zero rates, “

As with Student Loans (where the government is seeking to forgive them, at the expense of those who struggled to pay their way),

zero rates will benefit the excessive debtor, at the expense of the frugal saver.

The wrong people are being rewarded.

Some businesses would see no impact from zero rates,

CIGA Wolfgang Rech

There is nothing “normal” about zero interest rates Wolfgang…

Bill

JPMorgan CEO Jamie Dimon: Potential For Zero Rates ‘Obviously’ A Concern
September 11, 2019

JPMorgan Chase & Co. (NYSE: JPM) CEO Jamie Dimon downplayed the likelihood of interest rates hitting zero, but the bank executive is taking steps to prepare for it, CNBC reported Tuesday. 

What Happened

Dimon said Tuesday at a conference in New York he doesn’t believe the U.S. will join other countries worldwide with negative or zero interest rates, according to CNBC. But the bank executive is “thinking about how to be prepared” if this occurs and said it will “obviously” be a problem.

Some businesses would see no impact from zero rates, although there are others that would see their margins diminish — and there is “very little” that can be done in that case, CNBC quoted Dimon as saying.

The 10-year yield dipped as low as 1.44% in August and moved higher to 1.69% Tuesday. In contrast, benchmark bonds in developed economies like Germany come with a negative yield, CNBC said. 

Why It’s Important

Even a veteran bank executive like Dimon was caught by surprise with the Federal Reserve’s move to lower interest rates, Fox Business reported.

Dimon said at the conference he believed rates would be “heading up, not down” in 2019.

More…

 

Jim/Bill,

If Central Banks are scrambling for gold at any cost, shouldn’t everyone be?

“Price is not the determining factor in central bank buying—

When central banks are “buying as heavily as they are, it provides cover and a rationale for other central banks to do the same.”

They smell a massive currency war in the air and are diligently preparing for the aftermath.

“The moves are due to concerns about the outlook for currencies, including the dollar and the euro, says Mark O’Byrne, research director at GoldCore in Dublin.  

O’Byrne added that the risk of the trade war descending into a currency war may also be feeding central bank diversification into gold.”

When there is no where else left to turn, people will realize the true value of gold!

CIGA Wolfgang Rech

 Why Russian And Chinese Central Banks Will Keep Buying Gold
September 13, 2019

Emerging markets have beefed up gold holdings, undeterred by prices near their highest levels in more than six years, as countries such as Russia and China diversify their foreign-exchange reserves—a trend that is likely to continue.

“Central bank buying is, of course, important to the supply/demand dynamic for the metal, but is much more important in terms of sentiment toward the metal,” says Brien Lundin, editor of Gold Newsletter. When central banks are “buying as heavily as they are, it provides cover and a rationale for other central banks to do the same.”

Russian central bank gold reserves stand at 2,219.2 metric tons, according to the World Gold Council, or WGC, based on the latest data available in September from sources including the International Monetary Fund. China’s holdings are at 1,936.5 metric tons.

Given the latest prices, with the most-active gold futures contract GCZ19, -0.80%  settling at $1,499.50 an ounce on Friday, and about 32,151 troy ounces in one metric ton, the value of Russia’s gold reserves is at roughly $107 billion.

More…

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

J. Johnson’s Latest – Au/Ag Prepping For The Triple Witch Week
September 13, 2019

Great and Wonderful Friday Morning Folks,

Gold is positive again in the early morning with the trade now at $1,514.30, up $6.90 with the high nearby at $1,515.40 with the low at $1,502.90. Silver is up as well with the price at $18.22 up 4.3 cents after reaching up to $18.265 with the low at $18.045. The US Dollar, which spiked up to 90.105 during yesterday’s trade, and because the Draghi team cut rates to negative .5%, is now at 98.040 down 26.8 points for the moment with the high at 98.435 and the low close by at 98.000. All of this was done while the Comex was closed, before 5 am pst, and before the closing of London for the week.

In Venezuela, the Bolivar is losing value as Gold’s price increased with the price now pegged at 15,124.07 Bolivar, showing a gain of 18.97 in value with Silver now at 181.972, showing us a loss of .849 in value. Argentina’s Peso now has Gold valued at 84,939.56 showing a pullback with 11.96 Pesos taken off the price with Silver now at 1,022.15, losing 6.24 Pesos. In Turkey the Lira now has Gold valued at 8,583.96 proving a gain of 5.84 Lira after yesterday’s sudden reduction in interest rates just before the Euro-Union did the same with Silver now at 103.274 proving Silver lost 0.593 in T-Lira value.

September Silver Deliveries is still where all the activity resides with the Demands for Physicals standing at 525 fully paid for requests waiting to be transferred to London because we still have no physicals settled out here, proving a drop in count from yesterday’s numbers of 171 contracts with 135 (yesterday’s end of trade Volume) contracts being traded in-between a trading range $18.165 and $18.08 (yesterday). What we think we are witnessing in the early morning trades is the first purchases are always done at the higher pricings but later in the day, much smaller amounts of contracts get settled bringing the prices lower towards the end of the day. In short, more purchases are done at the higher prices but these single lot orders seem to be getting “special privilege” for the sake of reducing the price only. Really bizarre thinking reducing the prices instead of raising them when we see strong and continual daily demands. That’ll teach those buyers! It seems the Comex really has become a bankers joke.

More…

J. Johnson Updates

We have another 8 purchases inside the September Silver Delivery System which just by coincidence (again) has sent the prices down to $18.795…Proving the thesis that these low purchase numbers are just for keeping prices low…

Stay Resolute!

J. Johnson

And now the Volume in September is at 141 with the price still at $17.795…More buying means cheaper prices…Go Team Go!!

J. Johnson

Posted at 10:21 AM (CST) by & filed under In The News.

J. Johnson’s Latest – Impressive rally in Precious Metals – Resolutes?
September 12, 2019

Great and Wonderful Thursday Morning Folks,    

      Gold has turned higher in the overnight with the trade now at $1,512.40, up $9.20 and close to the high to beat at $1,513.70 with the low just below the Maginot line at $1,496.80. Silver is following with its price at $18.305, up 13.5 cents with the high to beat at $18.380 and a low at $18.085. The US Dollar, the one currency that refuses to lose support, even when the President is saying “drop the value so we can compete” publicly, is now trading at 98.55, down 7.8 points inside a very tight trading range between 98.67 and 98.495. All of this was done before 5 am pst, the Comex open, and the London close.     

      Our emerging markets currency watch is mixed (for now) with the Venezuelan Bolivar holding Gold’s price at 15,105.10 Bolivar adding 133.94 in value with Silver at 182.821, improving the value by 1.401 Bolivar. In Argentina, the Peso’s price for Gold now stands at 84,951.52, an increase in value of 1,027.84 with Silver now trading at 1,028.39 adding 11.40 Peso’s to its value. Over in Turkey, the Lira has surged in price as the central over there cut rates by 3.25% now putting Gold’s price at 8,578.12 showing a reduction in value of 62.80 Lira’s with Silver’s trade at 103.867 showing a loss of .823 Lira as we suspect this to only be a temporary pullback and should follow the norm (higher) real soon.       

      Yesterday was an impressive day inside Silver’s Delivery Month with the demand for physicals now at 696 fully paid for obligations showing us the Resolute Buyer is still demanding product as he increased the demands by 98 more (5,000 ounce) contracts during yesterday’s trade and with a total Volume of 318 buy/sells taking place after our secondary post. As of this morning’s activity, we see a Volume of 53 up on the board so far with a trading range between $18.165 and $18.070 with the last trade at $18.145.     

      Silver’s Overall Open Interest is now at 217,625 Overnighters showing us the entire increase from yesterday’s secondary note being inside the Deliveries. The additions total 93 in count compared to the 98 added yesterday inside the September contract, so someone owes us 5 more contracts (joke). How much control do they really have if there is arguably no product to sell at these super cheap prices? We haven’t seen a single ounce leave Comex yet (thank you Harvey for your posts) so far this month.      

More…