Posted at 2:06 PM (CST) by & filed under Jim's Mailbox.

From our friend Werner. Classic hyperinflation in Venezuela. Stocks to the moon in local currency but flushed down the toilet in terms of gold…

Bill

Bill,

The purchasing power of the currency is plunging, collapsing

From the end of August 2018 until now, the Bursatil Stock index has appreciated by 89,638% (this is 89 thousands 638%, not 89.6%) in Bolivar soberano terms.

But in US dollar terms, stocks lost 71% of their value.

image0

During the same period, Gold has appreciated by 444,377% (444 thousands 377%) in Bolivar terms. AMAZING!

CIGA Werne

Posted at 1:40 PM (CST) by & filed under USAWatchdog.com.

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

Money printing by the Fed and Congress is off the charts. The Federal Reserve doubled its balance sheet in a matter of months, and Congress is pumping out trillions of dollars in spending bills to fight the economic crisis caused by the Covid 19 lockdown. The really scary thing is not the massive money printing, but the fact that absolutely nobody seems to care about the risk to the U.S. dollar. Money manager Peter Schiff thinks he knows why, and explains, “(Back in 2008-2009,) even Larry Kudlow was worried about what the Fed was doing, but nobody is worried about it now.  The reason is they have been lulled into this false sense of complacency in that we got away with it the last time . . . and there was no negative consequence. We didn’t have runaway inflation and did not have loss of confidence in the dollar. So, there was no price to be paid. . . . Since we got away with it before, they think they will get away with it again, and I think they are completely wrong. . . .All we did was inflate a bigger bubble, but now this bubble has popped, and it found the mother of all pins in the Coronavirus that put a gaping hole in it, so the air is coming out much faster. Now, they are trying to reflate this thing. We are going to suffer the consequences, not only what we are doing now, but what we did back then. . . . When is all this inflation going to move out of the stock market and into the supermarket? I am surprised this has not already happened, but I do think we are at the end of the line. . . . Here’s what is going on. We are going to have this massive inflation tax. We are seeing price increases at the supermarkets.”

What has to break is the U.S. dollar, and that’s coming, according to Schiff, “We are going to overwhelm with dollar supply. We are printing all this money. The Fed is buying all these bonds. . . . This is it. The Fed is going all in on QE. There is no limit. They are printing all this money, and, so, ultimately, the dollar is going to tank. It hasn’t happened yet, but it will. That’s when the party really ends. That’s when there is massive pressure on consumer prices. That’s when there is massive (upward) pressure on interest rates. . . . This could be an inflationary depression. We could have hyper-inflation. We didn’t have anything like that in the Great Depression. During the 1930’s, prices went down, and people got some relief with lower prices. That made the downturn not as bad. Imagine high unemployment with the cost of living skyrocketing. That’s what we are heading for. It’s going to be the 1970’s only on steroids because it’s going to be a much deeper economic contraction with a much bigger increase in consumer prices.”

More…

Posted at 2:13 PM (CST) by & filed under In The News.

Bill Holter’s Commentary

WOW, B of A now sounds like a conspiracy theorist! Did fake markets just now happen or were we tin foil hat whackos correct all along? It’s OK, you know the answer…

“Central Banks Have Created A Fake Market”: BofA Asks Why Anyone Would Expect Stocks To Trade Rationally
May 22, 2020

It’s no longer fun to be a Wall Street macro strategist.

On one hand you have to divine the future for risk assets, looking at corporate and economic fundamentals and data, and recommend “big picture” trades based on your assessment of corporate profits and interest rates which have traditionally been the two key drivers to any macro asset allocation decision. On the other, none of that matters in a time of central planning when central banks have taken over price discovery, making your job meaningless as asset prices are now a direct consequence of nothing but central bank liquidity and explicit asset backstops. As Deutsche Bank’s Stuart Sparks put it best, “These are administered markets and market outcomes will be dictated by the policy goals of the Fed and Treasury, and the tools they select to implement policy”

Not only is it not fun, there is a sense of dejected resignation (perhaps as market experts see their careers become obsolete), one which was especially palpable when reading the latest Flow Show report from BofA’s Chief Investment Strategist Michael Hartnett who writes that these are “fake markets” in which “government and corporate bond prices have been fixed by central banks…why would anyone expect stocks to price rationally?”

To be sure there is no rationality in a world in which over the past 8 weeks there has been a 38 million rise in US unemployment coupled with a $10 trillion forecast loss in global GDP in 2020/21; this however has been offset by $4 trillion of asset purchases by central banks resulting in a $15 trillion surge in global equity market cap.

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Posted at 11:01 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

An avalanche will take out even the strongest trees. When it gets going, nothing can stand in its way.

Dave

America’s Largest Mall On Verge Of Default After Missing Two Loan Payments
May 21, 2020

Even before the coronavirus pandemic, US malls were in a crisis, with vacancies in January hitting a record high.

shopping vacancy

However, in the post-corona world, commercial real estate has emerged as one of the most adversely impacted sectors (perhaps because the Fed has so far refused to bail it out), with the number of new delinquencies soaring to a record high in recent weeks.

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Jim/Bill,

File under avalanche theory….

Dave

Here Comes The Wave: Loan Defaults Hit 6 Years High
May 22, 2020

Two weeks ago, when looking at the recent flurry of chapter 11 filings and a striking correlation between the unemployment rate and loan delinquencies, we said that a “biblical” wave of bankruptcies is about to flood the US economy.

shopping vacancy

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CIGA Lon checks in with a topic soon to be extremely relevant.  Those who have protected themselves will still be standing yet see most everything fallen down around them.  When the time comes, even though you have been thought and spoken of as an idiot, be charitable!

Bill

Jim & Bill,

There is no need to respond; I know you are both very busy and doing a great job in trying to bring people to a better understanding of what is going to happen and how it is unfolding now.

I heard something in the message from last Saturday that was sent to me yesterday… First, thank you for sending it. It said near the end that the goal is to make it to the ‘other side of the crises’ with assets that can then be deployed to make life very comfortable for the individual. I fully agree with the intent…but I think something is also important. Someone said to finish first one must first finish.

When I was the CFO of a company called Charlotte Russe and doing very well personally and financially; I got the news that my legally separated mother and father were dying and so was my younger unmarried sister. They lived in three very widely separate parts of the country. My wife and I have always worked and lived on less than what we made and our only daughter was very fortunate to have an athletic scholarship to the university she was attending. God has been good to us.

I gave Charlotte Russe a few of months’ notice of my intent to leave and take care of my family. That was not exactly what I wanted to do as my wife and I tried to get ready for a hoped comfortable retirement. I fully enjoyed my job, chosen field of endeavor and continued to consult for several years based on when I could fit it in which meant a reduced income (I’m not a very good salesman….including selling myself).

The point of this is that a lot of people, for a myriad of reasons, are not ready or prepared for this financial crisis. My wife and I don’t donate to organizations but as individuals we help others with funds anonymously and personally over rough spots in life. Though we are careful to give a hand-up and not a handout.

I don’t want any response to this letter, but I do believe that those that have the knowledge and/or, assets should have a goal of helping others during this crises to get through it…..Just as you two are, and have been doing with your financial knowledge and experiences in opening the eyes and ears of those willing to listen and learn. I truly believe there are a lot of people who will need what can be spared by others to get through this mess. That too is a reasonable use of assets and part of the Judeo-Christian ethics of our country.

Lon Gilbert

Posted at 9:04 AM (CST) by & filed under General Editorial.

Great and Wonderful Friday Morning Folks,

    They just can’t keep the first currency down like they used to with Gold recovering from yesterday’s dip with the trade at $1,735.50 up $13.60 after reaching $1,742.00 from a low at $1,722.50. Silver is recovering from it’s usual bigger beating with the trade at $17.47 up 10.6 cents after reaching $17.565 from it’s low down at $17.19. The US Dollar’s magnet is pulling it towards par with the value pegged at 99.74 up 33.7 points with its high at 99.895 from the low starting point at 99.40. Of course, all this started before 5 am pst, the Comex open, the London close, and after a Philadelphia Judge of Elections was caught stuffing the ballot box, admitting in court he literally was standing in a voting booth and voting over and over, as fast as he could.

     The Venezuelan Bolivar now has Gold priced at 17,333.31 showing a loss of 15.98 with Silver losing 2.447 Bolivar with the price at 174.482. Argentina’s price for Gold now sits at 118,094.77 Peso’s as the currencies pull – pushed the price down only 78.39 with Silver at 1,188.19 A-Peso’s showing a drop of 15.38 overnight. The Turkish Lira’s price, close to settling for the week, now sits at 11,811.85 Lira, and increase of 3.21 T-Lira with Silver’s trade at 118.901 down only 1.516 T-Lira.

      May Silver Delivery Demands now shows 148 fully paid for contracts waiting for receipts. Reducing yesterday’s count by 10, and with a Volume of 11 up on the board today with a trading range between $17.435 and $17.385 with the last trade at the high, up 10 cents, and with NO way to confirm if any of these 11 “buys” are spread trade entries/exits or “new buys”. Yesterday’s price, for the claimed 8 lot purchase was at $17.335. The daily delivery chart claimed a trade happened at $17.435 yesterday, but it doesn’t show up in their tick chart after I reported yesterday morning’s starting Volume of 2, which went to 4 with no price posted. Silver’s Overall Open Interest gained another round of Call Option Killers as the count reached 155,795 Overnighters proving 434 more shorts stayed in the trade after yesterday’s punch in the gut price drop.

      May Gold’s Delivery Demands now total 445 fully paid for contracts waiting for receipts proving a reduction of 83 contracts from yesterday’s trades with today’s starting point trading range between $1,726.70 and $1,726.60 for the 6 Lot Volume already up on the board. Yesterday proves the importance of watching the delivery numbers as Thursday’s Volume reached up to 528 contracts which just so happened to be yesterday’s Open Interest in the delivery month. The Volume Column does not include any of the previous purchases. These are either additional purchases or more entry/exit swaps in deliveries made in a single day. What this may be telling us is Mr. Resolute ain’t done buy’n and soaked up another 52,800 ounces on the dip! That purchase must have puckered up some of the short traders as the Overall Open Interest dropped 342 Obligations leaving the count at 532,367 paper contracts with only 3 days from their Options roll. Maybe it’s nothing to worry about, maybe it is. After all Silver and Gold are very small markets in the eyes of everyone else but the currency manipulators of the world. But when someone steps in and takes away $92,000,000 worth of marbles, they have less marbles (Gold) and more jacks (Debt) to contend with.

      As mentioned here for years, the inability to maintain debt continues to rise and rise (until?) as the virus is now “the blame in the game” as US Commercial Loan defaults, hit a 6 year high. Today’s default news shows a couple of overseas issues with tourism in Japan falling 99.9% in a months’ time with new car sales over in Europe plunging 76% in the same time period, which is also the largest drop ever. These are only a very few examples of the repercussions in the ability to maintain debt payments and staying in business. We expect a sharp increase in these stories, including an epic wave of global bankruptcies, as the world corrects the imbalances in debt, and as the political machine, that seems to have encompassed a few nations politicos, gets fully exposed.

      Those that hold the physicals, are not affected by any political news or these highly valued AAA+ rated debt instruments, held by every single central, which are artificially propped up by our ever-so-truthful rating agencies and their positive spin. Back when Jim Sinclair gave the warning, our marbles where placed at Tier 3. Now our marbles are placed as Tier 1 instruments! Since then we simply watch the show, knowing our retirements are in the safety of our own hands and not those that hold more debt than what can be paid. Those that hold debt, are now jacked, with the ratings heading towards Tier 3.

      Monday is our Memorial Day. I offer my deepest bow of respect to those that fought, bled, and died before us. If it wasn’t for them, we wouldn’t be here. Have a great and wonderful extended weekend and as always …

Stay Strong!

J. Johnson

More J.Johnson content is available with purchase of a JSMineset subscription.

Posted at 11:54 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

Many say there is simply not enough gold to ever go back to a gold standard. I would correct that thinking by adding, “at the current price” there is not enough gold…but at some, higher price, there is certainly enough gold. Adding to what Erik wrote, no more new currency or debt needs to be added to the system to attain say, a gold price of $50,000 per ounce. The money supply and debt has already been created and only awaits a spark to start the huge bonfire of paper everything…!

The United States is a Long Way from Home_001

The United States is a Long Way from Home_002

Posted at 10:48 AM (CST) by & filed under Jim's Mailbox.

Jim/Bill,

I told listeners the bulk of the bail out money would NOT go to Main Street, it would go to Wall Street!

Dave

Senators Express Outrage at Hearing over Mnuchin’s Sneakiness with $500 Billion of Taxpayers’ Money
May 20, 2020 ~

Steve Mnuchin Gives Interview to CNBC Outside of White House on Friday, March 13, 2020

U.S. Treasury Secretary Steve Mnuchin

We’ve been watching Senate Banking Committee hearings for decades. There is typically some level of professional politeness by Senators toward witnesses that are testifying. That didn’t happen yesterday. Both Republicans and Democrats lashed out at Treasury Secretary Steve Mnuchin for effectively cooking up a deal that put him in charge of $500 billion of taxpayers’ money under the stimulus bill known as the CARES Act and has now left Congress in the dark about how that money is being spent. During the hearing, which was held virtually, Senator Elizabeth Warren of Massachusetts summed up the situation to Mnuchin like this: “You are boosting your Wall Street buddies and leaving Americans behind.”

The hearing was called to hear from both Mnuchin and Fed Chair Jerome Powell. The CARES Act, irresponsibly, gave Mnuchin control of $500 billion, of which $454 billion was earmarked to go to the Fed to be leveraged into a $4.54 trillion bailout program. Apparently, Democrats were promised the money would go to help Main Street while the actual crafters of the legislation conveniently forgot to put that language in the bill. The bulk of the numerous programs set up by the Fed, which will use CARES Act money to absorb losses, are structured as bailout programs for Wall Street or the fossil fuels industry.

More…

Posted at 9:20 AM (CST) by & filed under USAWatchdog.com.

By Greg Hunter’s USAWatchdog.com

With every new revelation about what President Trump calls “Obamagate,” you see the curtain being torn down and revealing the corrupt players who were running America and attacking our Republic. Former CIA Officer and counter-terrorism expert Kevin Shipp, who wrote a book about the Deep State called “From the Company of Shadows,” says any hint that POTUS is a tool of the Deep State is preposterous. Shipp explains, “That is absolutely ridiculous. Donald Trump has confronted the Shadow Government and Deep State more than any other president in history, and that includes JFK. JFK did, of course, confront the Deep State and we saw what happened there. There has been no other president that has had the guts to expose the Shadow Government and Deep State like Donald Trump has. What has the Deep State done? They have gone after him with a vengeance. Why would the Deep State attack their own with attacks to try to destroy him and his family if he wasn’t threatening to expose the Deep State? No, he’s not a Deep State president. He’s not perfect. We all know that. There are members of his cabinet that we are concerned about with connections to some of the central banks. We all know that, but Donald Trump is not Deep State. He is splitting the Deep State wide open. Look what DNI Rick Grenell just presented to the President. He authorized for release of names of all the unmaskers. Trump is exposing the Deep State, and, personally, I am proud of him because I have been waiting for this for 20 years for a president to come out and expose these things.”

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