Posted at 10:16 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

Is the rule of law making a comeback?

Turley: Sessions’ Appointing Utah Federal Prosecutor Much Better for Trump than 2nd Special Counsel
March 31, 2018

WASHINGTON, DC – Professor Jonathan Turley, a top national legal expert on government investigations, commented on Thursday about Attorney General Jeff Sessions’ decision to bring in U.S. Attorney John Huber. Turley called it “brilliant”to combine all the powers of the U.S. Department of Justice’s inspector general with a prosecutor who can bring charges, seek indictments, and get results for President Trump far more quickly than a second special counsel.

Turley is a law professor at George Washington University, who attained national fame during the 1998 impeachment of President Bill Clinton as a top legal authority on special counsels and congressional investigations of government wrongdoing, including criminal wrongdoing. His reputation has only grown during the intervening 20 years, as he has weighed in on scandals and investigations of public officials from both political parties.

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Posted at 11:04 AM (CST) by & filed under In The News.

Cryptocurrencies: Looking Beyond The Hype
June 17, 2018

Abstract

Cryptocurrencies promise to replace trusted institutions with distributed ledger technology. Yet, looking beyond the hype, it is hard to identify a specific economic problem which they currently solve. Transactions are slow and costly, prone to congestion, and cannot scale with demand. The decentralised consensus behind the technology is also fragile and consumes vast amounts of energy. Still, distributed ledger technology could have promise in other applications. Policy responses need to prevent abuses while allowing further experimentation.

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Jim Sinclair’s Commentary

Who cares if Iran blows us all to hell in ten years and one day after this non-signed agreement was supposedly agreed to? Money talks and the insane do not walk. Slavery to Mammon is how societies disintegrate over time, but this occurrence will be in one big bang.

Every nuclear capable entity has a dooms day plan

EU Is Taking Steps To Protect Companies In Iran
June 11, 2018

The European Union is taking steps to protect EU companies investing in Iran from renewed U.S. sanctions on Tehran after U.S. President Donald Trump pulled out of the 2015 nuclear deal.

According to an article published by New Europe weekly on Monday, the European Commission said it has adopted an update of the Blocking Statute and of the European Investment Bank (EIB)’s External Lending Mandate. The move follows up on the informal Leaders’ Meeting in Sofia, as well as the Commission’s announcements of May 18.

“These measures are meant to help protecting the interests of EU companies investing in Iran and to demonstrate the EU’s commitment to the Joint Comprehensive Plan of Action (JCPOA),” the Commission said in a press release.

“The European Union is fully committed to the continued, full, and effective implementation of the JCPOA, so long as Iran also respects its obligations. At the same time, the European Union is also committed to maintaining cooperation with the United States, who remains a key partner and ally,” the Commission said.

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Bill Holter’s Commentary

A definitive list defining the definition of fake news…can you imagine the shrills if such fakery was pointed at our previous king or queen?

50 Media Mistakes in the Trump Era: The Definitive List
June 10, 2018

We the media have “fact-checked” President Trump like we have fact-checked no other human being on the planet—and he’s certainly given us plenty to write about. That’s probably why it’s so easy to find lists enumerating and examining his mistakes, missteps and “lies.”

But as self-appointed arbiters of truth, we’ve largely excused our own unprecedented string of fact-challenged reporting. The truth is, formerly well-respected, top news organizations are making repeat, unforced errors in numbers that were unheard of just a couple of years ago.

Our repeat mistakes involve declaring that Trump’s claims are “lies” when they are matters of opinion, or when the truth between conflicting sources is unknowable; taking Trump’s statements and events out of context; reporting secondhand accounts against Trump without attribution as if they’re established fact; relying on untruthful, conflicted sources; and presenting reporter opinions in news stories—without labeling them as opinions.

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Posted at 10:57 AM (CST) by & filed under Jim's Mailbox.

Courtesy of Dave.

Jim

The Federal Reserve: Public Enemy Number One
June 14, 2018

The following article was written by Peter Schmidt. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.

When currency was backed by gold, a central bank’s main function was to maintain the value of the issued currency in terms of gold. For example, if a central bank created too much money against the gold reserves in the banking system, an increasing number of people would begin to exchange their currency for gold. To combat this, a central bank would be forced to raise interest rates and decrease the money supply. The higher interest rates would incentivize people to exchange gold for larger savings on deposit that earn interest. Banking reserves – gold – would return to the banking system and the economy would return to balance. The prime reason for insisting on defining currency in terms of a precious metal was to provide a self-correcting braking mechanism to the creation of money. As expressed by the great Wilhelm Röpke:

If in the production of goods the most important pedal is the accelerator, in the production of money it is the brake. To insure that this brake works automatically and independently of the whims of government and the pressure of parties and groups seeking “easy money” has been one of the main functions of the gold standard. That the liberal should prefer the automatic brake of gold to the whims of government in its role of trustee of a managed currency is understandable.”[1]

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“Are you really certain the USA has a boom economy to fall back on as this article says?” If that is not so then the problem is Global one more time, times orders of magnitude.

Jim

Jim/Bill,

Disconcerting.

Although only one man’s opinion, it could be a harbinger of things to come.

“If Deutsche Bank goes below $10, I’m not only going to say the U.S. bank stocks start making new lows, the S&P will start to roll over too,” he (Dennis Dick ) said.

Deutsche Bank shares traded down another 1 percent Friday to $11.11.

Flattening yield curve to hurt Euro banks first, then U.S. banks, then S&P. Everything is tied together.

If so, then all roads lead to Gold.

CIGA Wolfgang Rech

A Concerning Weakness In Bank Stocks
June 16, 2018

Coming into 2018, many traders expected the environment of rising interest rates, financial sector deregulation and a booming U.S. economy to create the perfect environment for bank stocks. Unfortunately, the Financial Select Sector SPDR Fund (NYSE: XLF) is down 1.7 percent so far this year, and PreMarket Prep co-host Dennis Dick discussed the troubling trading action on Friday’s show.

Watching Europe Closely

European banks such as Deutsche Bank AG (USA) (NYSE: DB) aren’t out of the woods yet, and U.S. banks stocks aren’t as cheap as they may appear, Dick said.

“I’ve said publicly that I’m bearish the U.S. banks, and I continue to be bearish on the U.S. banks because I don’t know what is going on in Europe,” Dick said. “I don’t like the pricing action of any of the European banks.”

Deutsche Bank shares are down 36 percent in the past month after the Wall Street Journal reported the U.S. Federal Reserve placed assigned a “troubled condition” to Deutsche Bank last year. Shares of European bank stocks Lloyds Banking Group PLC (ADR) (NYSE: LYG), Barclays PLC (ADR) (NYSE: BCS) and Credit Suisse Group AG (ADR) (NYSE: CS) are all down between 3 and 13 percent in 2018.

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Courtesy of JB.

Jim

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Wolfgang, “astute” institutions missed the boat if they are just now locking in financing via extended maturities…but better late than never!

Best,

Bill

Jim/Bill,

What is the FED thinking of?

“And with both T-Bill issuance continuing to surge, and rates rising, two things are certain: not only will the Libor-OIS spread resume blowing out amid the continued surge in short-term supply, but demand will continue slide, although the good news is that we are still well off from the record lows, in which auctions were only 1.5x covered at the start of the century.”

On a path to raising interest rates across the board, they are increasing their issuance of short term paper (which eventually may have to be refinanced in the longer end. If inflation rears its ugly head, short term rates will skyrocket with the FED leading the charge ala Paul Volker).

That could, make that will, send refinancing rates through the roof, increasing debt issuance exponentially.

Even astute corporations are beginning to extend their debt maturities.

CIGA Wolfgang Rech

6 Month Bill Bid-To-Cover Plunges To 2nd Lowest This Decade Amid Fleeing Demand
June 18, 2018

While demand for US Treasurys remains brisk at primary auctions (if more questionable in the secondary market where we recently learned that Russia dumped half of its Treasury holdings, or almost $50BN, in April), the same can hardly be said for the short-end of the market, where moments ago we saw what happens to auction demand in a time of rapidly rising rates.

As shown in the chart below, while the yield on 6 Month Bills auctioned off today came in largely as expected at 2.075%, the demand did not, and after a solid Bid to Cover of 3.59 last week, today’s 6M auction suffered one of its biggest drops on record, tumbling to just 2.78, with $116.9BN in bids tendered for $42BN in paper, down sharply from $150.6BN on June 11. This was the second lowest Bid To Cover this decade, and only better than the 2.74 BTC printed on the February 12, 2018 auction.

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6 Month T-Bill Bid To Cover

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Courtesy of JB.

Jim

Watch Live: FBI Director, Inspector General Testify On “Explosive” Report
June 18, 2018

After President Trump bashed the conclusion of his report duringan impromptu press conference with Fox & Friends on Friday, Inspector General Michael Horowitz, author of the infamous IG report, is set to testify before the Senate Judiciary Committee Monday afternoon at 2 pm ET, along with FBI Director Christopher Wray.

No doubt, lawmakers will have plenty of questions about the report’s conclusion, which determined that Comey and the bureau were innocent of wrongdoing, though the report concluded that Comey was “insubordinate” and also singled out several instances of political bias.

Watch live below:

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Posted at 2:43 PM (CST) by & filed under In The News.

GOP Will Hit FBI, DOJ With ‘Full Arsenal Of Constitutional Weapons’ If They Don’t Comply With Subpoena, Gowdy Warns
June 17, 2018

House Oversight Committee Chairman Trey Gowdy told “Fox News Sunday” that House Speaker Paul Ryan led a meeting Friday night with senior members of the DOJ and FBI, and made it clear that “there’s going to be action on the floor of the House this week if FBI and DOJ do not comply with our subpoena request.”

The House Judiciary Committee has requested more than a million documents from the FBI and DOJ relating to the Hillary Clinton email probe, the firing of former top FBI official Andrew McCabe, and reported surveillance of a Trump aide during the 2016 presidential election.

But Republicans have accused the DOJ and FBI of stonewalling and intentionally impeding their investigation, despite the agencies’ claims that fulfilling the request requires a careful review of the sensitive documents.

Gowdy, R-S.C., said the GOP’s action could involve “the full panoply of constitutional weapons available to the people’s house.”

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Posted at 7:13 AM (CST) by & filed under In The News.

Judge Orders Paul Manafort Detained Amid Witness Tampering Allegations
June 15, 2018

Updated at 12:31 p.m. ET

A federal judge ordered Donald Trump’s former campaign chairman, Paul Manafort, to jail on Friday following allegations by prosecutors that he tampered with witnesses in his case.

“You’ve abused the trust placed in you six months ago,” said Judge Amy Berman Jackson. “I thought about this long and hard, Mr. Manafort. I have no appetite for this.”

But Berman Jackson said she could not turn a blind eye to the charges that Manafort had attempted to contact witnesses in his case after he was on bail.

The judge said Manafort had not committed physical violence but rather had harmed the community.

“The harm in this case is the harm to the administration of justice, the harm to the integrity of the justice system,” Berman Jackson said.

Manafort was led out of the courtroom by security officers; he was not handcuffed. As he approached the courtroom door, he waved to his wife, Kathleen, who nodded to him. Friends hugged Kathleen Manafort as her husband was taken out of court.

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Posted at 7:09 AM (CST) by & filed under Jim's Mailbox.

 

File under did you know?

Dave

Among The Costs Of War: Billions A Year In A.C.?
June 25, 2011

The amount the U.S. military spends annually on air conditioning in Iraq and Afghanistan: $20.2 billion, according to a former Pentagon official.

That’s more than NASA’s budget. It’s more than BP has paid so far for damage from the Gulf oil spill. It’s what the G-8 has pledged to help foster new democracies in Egypt and Tunisia.

“When you consider the cost to deliver the fuel to some of the most isolated places in the world — escorting, command and control, medevac support — when you throw all that infrastructure in, we’re talking over $20 billion,” Steven Anderson tells weekends on All Things Considered guest host Rachel Martin. He’s a retired brigadier general who served as chief logistician for Gen. David Petraeus in Iraq. He’s now in the private sector, selling technologies branded as energy-efficient to the Defense Department.

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Jim/Bill,

Wow!  We’re on our way.

One small step for Texas, one giant leap for mankind.

Remember the Alamo will be replaced by Remember the Fed.

Thanks Texas.

CIGA Wolfgang Rech

The Texas Bullion Depository Officially Opened For Business This Week
June 5, 2018

Authored by Mike Maharrey via The 10th Amendment Center,

The Texas Bullion Depository officially opened for business this week. The creation of the facility represents a power-shift away from the federal government, and sets the foundation to undermine the Federal Reserve’s monopoly on money.

 

 

 

 

 

In June 2015, Gov. Greg Abbot signed legislation creating the state gold bullion and precious metal depository. The facility will not only provide a secure place for individuals, business, cities, counties, government agencies and even other countries to store gold and other precious metals, the law also creates a mechanism to facilitate the everyday use of gold and silver in transactions. In short, a person will eventually be able to deposit gold or silver – and pay other people through electronic means or checks – in sound money.

The facility began accepting deposits of precious metals on Wednesday, June 6. Texas Comptroller Glenn Hegar became the first depositor. He praised the depository as a secure place to store gold and silver.

“Once you’ve made that deposit, it is going to be there tomorrow and in the future, until you make a decision to withdraw it or you want to sell it,” he told the Texas Tribune.

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Trump’s Achilles Heel could just turn out to be the make believe economic boom. This would be quite a surprise to the new Fed Chairman. With Europe in tatters, the entire Potemkin world might just begin its unwind.

GG

“The Global Bond Curve Just Inverted”: Why JPM Thinks A Market Crash May Be Imminent
June 16, 2018

At the beginning of April, JPMorgan’s Nikolaos Panigirtzoglou pointed out something unexpected: in a time when everyone was stressing out over the upcoming inversion in the Treasury yield curve, the JPM analyst showed that the forward curve for the 1-month US OIS rate, a proxy for the Fed policy rate, had already inverted after the two-year forward point. In other words, while cash instruments had yet to officially invert, the market had already priced this move in.

One way of visualizing this inversion was by charting the front end between the 2-year and 3-year forward points of the 1-month OIS. Here, as JPM showed two months ago, a curve inversion had arisen for the first time during the first week of January, but it only lasted for two days at the time and the curve re-steepened significantly in the beginning of April.

 

 

 

 

 

 

 

 

 

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Was it that fellow Holter who a few years ago called this exact period the “Time of the Truth Bombs?”

This could easily make scared but good people in DOJ and FBI come forward with the efforts to execute The Trump Bloodless Coup in the USA,. I think that used to be called “high treason.”

GG

“We Had Whistleblowers”: Nunes Reveals “Good FBI Agents” Tipped Off Congress About Comey Team
June 16, 2018

“Good FBI agents brought this to our attention.”

House Intelligence Committee Chairman Devin Nunes (R-CA) revealed that in late September 2016, “Good FBI agents” stepped forward as whistleblowers to tell them about additional Hillary Clinton emails “sitting” on Anthony Weiner’s laptop.

“I’ve never actually said this before,” said Nunes. “We had whistleblowers that came to us in late September of 2016 who talked to us about this laptop sitting up in New York that had additional emails on it.”

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Looks like the closet may be open for good people to spill the beans all over Heir Mueller. In time, the manipulation in all markets and crooked nerd trading machines will find the light of day right on them.

Jim

If she lives, she’ll testify.

JB

Former Obama Admin Official Linked To Anti-Trump Dossier To Testify Before Congress
June 15, 2018

Former State Department official Victoria Nuland, who reportedly connected FBI officials to the former British spy who wrote the infamous anti-Trump dossier, will testify before the Senate Intelligence Committee next week.

Ms. Nuland, a longtime State Department official who served in the George W. Bush administration as the U.S. Ambassador to NATO, served during the Obama administration as assistant secretary of state for European and Eurasian Affairs.

In that capacity, according to the book “Russian Roulette,” she played an instrumental role in the evolution of Christopher Steele’s negative campaign research on then-presidential candidate Donald Trump in 2016 by giving permission for an FBI agent in London to meet with the former U.K. intelligence officer.

“Russian Roulette” was published earlier this year and written by veteran Washington media figures, Yahoo News reporter Michael Isikoff and Mother Jones magazine’s David Corn.

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Posted at 10:29 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

This article has been haunting me the past few hours.

“At a meeting Thursday, the Fed governors adopted a new rule that caps a big bank’s credit exposure to another bank.”

They (the FED) didn’t just pull this out of their hat.   Something on the banks’ balance sheets, as well as their lust for leverage, is prompting them to head off a financial catastrophe, which they obviously feel is no longer a remote possibility.

There’s been so much talk over the past few years of excess debt, excess leverage, reaching for yield, etc. that we’ve all become immune to any talk of repercussions.

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If only we had a “financial” flu shot.

CIGA Wolfgang Rech

Fed Sets Limits On Biggest Banks’ Loans To Each Other
June 14, 2018

WASHINGTON (AP) — The Federal Reserve has set limits aimed at addressing one of the leading causes of the 2008 financial crisis — the buildup of loans extended by one bank to another among the biggest Wall Street institutions.

At a meeting Thursday, the Fed governors adopted a new rule that caps a big bank’s credit exposure to another bank. The rule is close to a proposal the central bank floated two years ago, but it makes revisions for the credit limits to be tailored to the size of the bank. That’s in line with the Fed’s current approach to regulation under new leaders appointed by President Donald Trump.

The aim of the rule, applied to banks with assets of $250 billion or more, is to help bolster the stability of the financial system. The hope is to prevent a repeat of the crisis that engulfed the financial system in September 2008 when the collapse of Wall Street powerhouse Lehman Brothers raised fears over the stability of banks that had made loans to Lehman.

The Fed oversees Wall Street titans such as JPMorgan Chase & Co., Goldman Sachs & Co., Bank of America Corp. and Citigroup Inc. The banks are considered to be so huge and interconnected that each could threaten the financial system if it collapsed.

“The financial crisis showed that interconnections between our largest and most complex institutions — for example, lending and borrowing between such firms — can threaten the stability of the financial system,” Fed Chairman Jerome Powell said before the vote. He said the new rule “will limit these exposures and their associated risks.”

The affected banks will have between 18 and 24 months to comply with the new limits and to start reporting their loan exposures to the regulators.

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