Posted at 3:00 AM (CST) by & filed under Jim's Mailbox.


USD point and figure chart- 92-93 level crucial! If the Fed doesn’t hike interest rates by its June 14 meeting expect the 93 to be reached and breached! It will show the weakness of the US economy! Gold/silver will flourish.




A sign of times and a legacy cost from Private Equity Players who really have proved themselves to be asset strippers of ability.

Gone are the times, when Private Equity Players would buy businesses and remake them to be sold at a future time for a multiple of acquisition cost. Somewhere lost with the same mindset that brought us derivatives and Credit Default Swaps and the like that surfaced in 2007 and from which the economy has never recovered. It is all about financial manipulation and wizardry that carries a price which comes due.

So when people say things will be better and there is no real North American adjustment underway, do not drink the Koolaid. It will affect all of us in one way or another, without exception. As all of North America is experiencing a retail buying decline. And it is not all about internet shopping as actual dollar sales are declining because people are afraid and running out of spending room.

It matters not, whether you are in America or Canada adjustment to declining living standards is inevitable as businesses close or cut back affecting actual employment while putting a damper on expectations and spending. Daily, one can see apprehension in voices and faces of many retail staff who are worried about their jobs. Many of them are putting off dealing with health care issues that will only come back in the future with an increased burden for them and society. And do not think the banks are not watching looking over their shoulder at mortgage risk. Rates do not have to rise to dampen buying. All it takes is a more defensive posture on the part of banks as to who they think is creditworthy to slow sales and lower prices.

Like always, it will be the consistency and quality of earning power that segregates actual buyers from wannabes. And in so doing people who were mortgage qualified now will find themselves under scrutiny in the future as banks look at weakness in either employment tenure or actual employer continuity. It is also a reason you will see people and banks prefer closed ended term mortgages and you will see Credit Union mortgages grow during these times as it is a growth environment for them at the expense of banks.

And yes, for a turn around to occur, we need to see new patient capital invested into the technology of tomorrow to create new industries or remake existing ones into wealth drivers of tomorrow. Sadly, we can expect little if anything from the current band asset strippers bend on self gratification and personal gain at the expense of their employees and the public.



When I was in school, a trillion was only used for the distance light traveled in a year, as in 5.87 trillion miles. A number impossible of any meaningful comprehension.

To understand how large an amount a trillion dollars is, you have to describe it in numbers you can relate to. One million dollars, as in four houses at $250,000 each, is about as large a number as I can get my mind around. I can, also, understand a year of 250 working days with holidays and weekends not counted.

If you spent one million dollars a day, every working day, you would spend 250 million dollars in one year. If you continued to do that for 4 years, you would spend 1 billion dollars. If you wanted to spend 1 trillion dollars, you would have to spend 1 million dollars a day for the next 4,000 years!

If you were able to pay down the national debt by 1 million dollars a day, you would have to do that for the next 80,000 years!

CIGA Stephen


Jim Sinclair’s Commentary

The truth hurts sometimes.

Dollar chart! We are now 96.71! I think this could be the biggest danger in the market . The expectations of an interest rate hike for June 14 is NOT WORKING! WHY? BECAUSE THE ECONOMY IS IN SHAMBLES!

Gijsbert Groenwegen

S&P, Moody’s Downgrade Illinois to Near Junk, Lowest Ever for a U.S. State
June 02, 2017

Illinois had its bond rating downgraded to one step above junk by Moody’s Investors Service and S&P Global Ratings, the lowest ranking on record for a U.S. state, as the long-running political stalemate over the budget shows no signs of ending.

S&P warned that Illinois will likely lose its investment-grade status, an unprecedented step for a state, around July 1 if leaders haven’t agreed on a budget that chips away at the government’s chronic deficits. Moody’s followed S&P’s downgrade Thursday, citing Illinois’s underfunded pensions and the record backlog of bills that are equivalent to about 40 percent of its operating budget.

“Legislative gridlock has sidetracked efforts not only to address pension needs but also to achieve fiscal balance,” Ted Hampton, Moody’s analyst, said in a statement. “During the past year of fruitless negotiations and partisan wrangling, fundamental credit challenges have intensified enough to warrant a downgrade, regardless of whether a fiscal compromise is reached.”





Gingrich: ‘The Deep State Exists’
March 14, 2017

Former Speaker Newt Gingrich (R-Ga.) says there is a “deep state” of entrenched federal government employees undermining President Trump.

“Of course, the deep state exists,” Gingrich told the Associated Press on Tuesday. “There’s a permanent state of massive bureaucracies that do whatever they want and set up deliberate leaks to attack the president.

“They are fighting to keep hold of their power. This is what the deep state does: They create a lie, spread a lie, fail to check the lie and then deny they were behind the lie.”



Silver sets up new launch point — $18.44 and $18.77 crucial levels. Courtesy of CIGA GG.


Look At This Major Launch Point Set Up In The Silver Market!
June 01, 2017

The primary long-term buy signal was back in February 2016, as this momentum chart moved out above the lower red line (price closed that month at $14.89).


In our May 4th, 2017 report we showed some archival examples of how gold transitioned in the past from bull to bear and bear to bull. Same concepts apply to silver and many markets. It is usually a laborious process involving a year and a half or so before a new long term trend change is clear enough for most to see, though annual momentum usually signals the new trend outcome very early on…


Posted at 11:28 AM (CST) by & filed under Jim's Mailbox.


If you ever had any doubts about gold maintaining the value of your wealth, read this.

“Toronto homes aren’t that expensive, if you pay in gold.”

Although housing prices are soaring, if you had your savings in gold….you’d needn’t worry….EVER!

They’ll always be affordable.



CIGA Wolfgang Rech

How Much Gold Would Buy You a Home in Toronto?
May 29, 2017


Toronto homes aren’t that expensive, if you pay in gold.

Douglas Porter, chief economist at the Bank of Montreal, mined data showing that when expressed in terms of gold, house prices in Canada’s red-hot real estate market are far from record highs. An average home in Toronto today costs just over 540 ounces of gold, well below the record 655 ounces in 2005, Porter found.

“The slightly more serious point is that gold is again close to a record high in Canadian dollar terms — and no one is calling the gold market a bubble,” Porter wrote in a May 26 note.


Posted at 2:50 AM (CST) by & filed under Jim's Mailbox.

As Jim puts it, “what is the value of a contract that cannot perform”?



Worth reading and understanding.

The background painted in this article make it quite clear that historically the concept of debt as a asset is fine until the day the debt cannot be carried or cannot be recouped or repaid as at that point both the debtor and holder of the debt have nothing. So the idea today that owning debt instruments be it mortgages or loans that are owed to you is only as good as the ability to pay.

Smith also reconfirms to us that there are only three kinds of assets that have intrinsic value in difficult times….. productive assets that have a daily need, think toothpaste or a razor…. alternative stores of value that encompass everything from eggs to gold….. lastly the knowledge and experience in your head that is needed by society, think shoemaker…

The rest of so called assets from the trivial to the fashion (new phones, or the seasonal hue of blue in a suit or jeans) are nice but not necessary as you can do without and will do so when push comes to shove.

When this bubble pops, we will see quickly the realities of the day.





From what I see here, things are not going to be pretty.

This could be a way of the FED telegraphing to the markets that the punch bowl will slowly be removed.

Even the FED realizes the markets are getting out of control. Best to let some air out now and give the markets a heads up so there won’t be massive panic.

They figure at least it will be expected.


CIGA Wolfgang Rech

Fed President: “A Stock Market Correction Could Actually Be A Healthy Thing”
May 30, 2017

Much of this morning’s interview between CNBC’s Steve Liesman and Dallas Fed’s Robert Kaplan was pre-scripted and uneventful, representing the latest canned discussion of the Fed’s rate hike and normalization plans. Specifically, the former Goldman partner and current Dallas Fed preident once again laid out a noted course for a fairly aggressive path of rate hikes coupled with reductions in the central bank’s balance sheet for the remainder of the year.

Still, there were two notable highlights.

First, Kaplan doesn’t think that’s because the economy is about to take off. Instead, the regional Fed president sees growth likely continuing on the path of about 2% and not the 3% or higher GDP boom forecast in President Donald Trump’s budget.


Posted at 2:44 AM (CST) by & filed under Bill Holter.

His name was Seth Rich, will anyone stand up for him?


Seth Conrad Rich

January 3, 1989 – July 10, 2016
Seth was a 27-year-old Democratic National Committee (DNC) employee who was fatally shot in Bloomingdale, Washington, D.C. The killer(s) of Seth have not been found.
More Information…

Posted at 1:35 PM (CST) by & filed under In The News.

Bill Holter’s Commentary

Written like lyrics with logic!

Charlie Daniels’ Open Letter to Chuck Schumer: You’ve Opened Pandora’s Box
May 24, 2017

Sen. Schumer, I don’t live in your constituency, but in the larger picture, you live in mine and every other legal, taxpaying American citizen who is affected by the power you hold in your political party, your blind allegiance to it and the obstructionist posture to anything that doesn’t directly benefit it.

There’s something sinister about seeing you bent over the lectern in the Senate Chamber, your countenance resembling what I would imagine Edgar Allen Poe’s would look like reciting one of his macabre tales of doom and gloom, as if there is not one drop of happiness in your life, forecasting a dismal future for America if anything President Trump proposes passes both houses, is signed and becomes law.

I know you’re disappointed. I know you had the balloons ready to fall and the corks halfway out of the champagne bottles on election night. And I know you just can’t face the truth that what happened in the election was exactly the same thing you continue to do: you forgot about the working people; you forgot about the empty factories of the rust belt; you took for granted the high crime, low employment inner cities you’ve made unkept promises to for decades.


Posted at 8:55 AM (CST) by & filed under Jim's Mailbox.

Dear Bill/Jim,

A Nation of laws

Very short video – about 84 seconds

Donald Trump should televise this Bill Clinton speech from 1995 and simply state “I’m Donald Trump and I approve this message”  No additional commentary needed.



An Analysis of Bitcoin’s Potential as a Digital Currency
May 28, 2017

Bitcoin Revisited

In a previous newsletter discussion I said that governments probably wouldn’t allow Bitcoin to operate independent of centralized control. Taxation, money laundering, and criminality are impediments to government acceptance of cryptocurrencies as lawful money. I wrote that text a few months ago. Since then I’ve immersed myself in studying blockchain technology and understanding its acceptance in the tiny and rapidly growing Bitcoin community.


Posted at 4:38 PM (CST) by & filed under In The News.

Bill Holter’s Commentary

Surprised? You shouldn’t be!

CNN Journalist ‘Governments Pay Us To Fake News’, Shocking Exposé
November 26, 2016

According to Amber Lyon, a three-time Emmy award winning journalist, CNN is routinely paid by the US government and foreign governments to selectively report on certain events and make up fake news stories.

Furthermore, the Obama administration pay CNN for editorial control over some of their content. report:

Back in March 2011, CNN sent a four person team to Bahrain to cover the Arab Spring. Once there, the crew was the subject of extreme intimidation amongst other things, but they were able to record some fantastic footage. As Glenn Greenwald of the UK’s Guardian writes in his blockbuster article from September 4th 2012:


Bill Holter’s Commentary

My passport is fire resistant, isn’t yours?

Manchester, Berlin, Paris, Nice, London, New York: Passports and IDs Mysteriously Discovered in the Wake of Terror Attacks
May 27, 2017

This article reviews the “mysterious” phenomenon of IDs and Passports of terror suspects routinely discovered (often in the rubble) in the wake of a terrorist attack.

In most cases the alleged suspect was known to the authorities.

Is there a pattern? The ID papers of the suspect are often left behind, discovered by police in the wake of a terrorist attack.


Posted at 3:55 PM (CST) by & filed under General Editorial.

My Dear Extended Family and Friends,

On Memorial Day we remember the men and women who died while serving in our armed forces of the United States of America and all of our past war dead throughout our nations history.

Memorial Day is sometimes confused with Veterans Day, which is commemorated on November 11th of each year. Veterans Day celebrates , commemorates and honors the service of all our military veterans. On Memorial Day, we honor those who gave their lives in military service for our country.
Many of us will be enjoying the long weekend with family and friends. Parades, concerts, and picnics are often the order of the day followed by fireworks displays. We have so many freedoms and so much to be thankful for in the United States. Our enduring gratitude is due to those men and women of our armed forces who made the ultimate sacrifice for our American way of life. Let us take the time to pay our respects and personal tribute to our fallen heroes on this day of remembrance.

Have a good and safe holiday weekend.

Respectfully yours,
Jim & Bill