June 9/Another whacking of gold: down $7.80 with silver down 20 cents/For the 7th consecutive day, the amount of silver standing at the comex increases right from its starting point at First Day Notice/Theresa May falls short by 8 seats of a majority sending problems for her and for the UK/More on the Comey affair/

GOLD: $1268.50  down $7.80

Silver: $17.19  down 20  cent(s)

Closing access prices:

Gold $1294.30

silver: $17.68










Premium of Shanghai 2nd fix/NY:$6.75


LONDON FIRST GOLD FIX:  5:30 am est  $1274.25




For comex gold:



TOTAL NOTICES SO FAR: 2118 FOR 211,800 OZ    (6.5878 TONNES)

For silver:

For silver: JUNE


Total number of notices filed so far this month: 783 for 3,915,000 oz



Another raid as the bankers are determined to bury those who play the paper gold and paper silver game.


Over at the comex, the amount standing for the silver metal again rose in similar fashion to what we witnessed last month and also in April. It is up for the 7th consecutive day. We certainly have a determined entity trying to get its hands on whatever silver is available.

Let us have a look at the data for today


This is where we are heading:  (JB Slear/Jim Sinclair)


According to JB Slear, this is what the future holds. Why should I write words. Get into the cellar as fast as you can!






In silver, the total open interest FELL BY 922  contract(s) DOWN to 205,319 WITH THE FALL IN PRICE OF SILVER THAT TOOK PLACE WITH YESTERDAY’S TRADING (DOWN 19 CENT(S). In ounces, the OI is still represented by just OVER 1 BILLION oz i.e.  1.0260 BILLION TO BE EXACT or 147% of annual global silver production (ex Russia & ex China).


In gold, the total comex gold FELL BY  8,583 contracts WITH THE GOOD SIZED WHACKING GOLD TOOK  ($13.80 with YESTERDAY’S TRADING). The total gold OI stands at 488,383 contracts.


we had 13 notice(s) filed upon for 1300 oz of gold.



With respect to our two criminal funds, the GLD and the SLV:


We had no changes in tonnes of gold at the GLD:

Inventory rests tonight: 867.00 tonnes



Today: no changes in inventory/

THE SLV Inventory rests at: 339.605 million oz



First, here is an outline of what will be discussed tonight:


(report Harvey)


2.a) The Shanghai and London gold fix report



2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY:  Bloomberg


i)Late THURSDAY night/FRIDAY morning: Shanghai closed UP 8.06 POINTS OR 0.26%   / /Hang Sang CLOSED DOWN 32.77 POINTS OR 0.13% The Nikkei closed UP 104.00 POINTS OR 0.52%/Australia’s all ordinaires  CLOSED UP 0.01%/Chinese yuan (ONSHORE) closed DOWN at 6.7971/Oil UP to 45.70 dollars per barrel for WTI and 47.94 for Brent. Stocks in Europe OPENED MIXED       ..Offshore yuan trades  6.7913 yuan to the dollar vs 6.7971 for onshore yuan. NOW  THE OFFSHORE IS MUCH WEAKER TO THE ONSHORE YUAN/ ONSHORE YUAN A LITTLE WEAKER (TO THE DOLLAR)  AND THE OFFSHORE YUAN IS MUCH WEAKER TO THE DOLLAR AND THIS IS COUPLED WITH THE MUCH STRONGER DOLLAR. CHINA NOT HAPPY WITH THE NEWS THAT ITS DEBT HAS BEEN DOWNGRADED



A little background on those 4 anti ship missiles fired by North Korea.  It was a test  for precise accuracy and it is alarming to the west

( Mac Slavo/SHTFPlan)



Whenever you see the Chinese 5 year/10 yr invert , then recession is flashing red!! Actually everything is inverting!

( zerohedge)




Theresa May wins  318 seats and falls short of a majority.  She will hook up with the Irish right wing Democratic Unionist Party to allow her to govern:

( zerohedge)

ii)An important lesson for us all.  A must read…

( Simon Black/SovereignMan.com)


Tillerson asks for the blockade against Qatar to stop as it is hindering the USA campaign against ISIS
( zero hedge)


Mexican Industrial production simply crashes in April

( zero hedge)



rig counts rise for the 21 st consecutive week

( zero hedge)



i)Trading today in gold:

the Crooks are at it again:

( zero hedge)

ii)Mexico owes Canadian miners more than 360 million dollars with Goldcorp the lions share at 230 million

( Reuters/GATA)

iii)Chris Powell comments on the huge raid we have been experiencing this past two days:

( Chris Powell/GATA)

iv)A great reason to whack gold today:  Gold imports jump 400% as the increase in GST tax fear as spurred stocking of gold

( Bloomberg)

v)totally absurd:  Jim Cramer discusses bitcoin and highlights that it may hit 1 million dollars.

( Mish Shedlock/Mishtalk)


10. USA Stories

i)Trump accuses Comey of being a “leaker” and a liar and also he claims total and complete vindication

( zerohedge)

ii)Trump is set to file a complaint against Comey for leaking the memos to the New York Times and CNN

( zerohedge)

iib)Lawyer Kasowitz produces the May 11 New York Times article which clearly shows that someone leaked the memo prior to Trump’s tweet on the 12 of May


( zero hedge)

iic)In a press conference Trump hints that he has the Comey tapes and he then tells the press that they are going to be very disappointed..

(courtesy zero hedge)

ii d)that did not take long!! The House Intelligence Committee demanded from Trump the tapes, if they exist..

( zerohedge)

iii)Not a good sign for the economy:  credit card defaults surge the most since 2009:

( zero hedge)

iv)A huge drop in auto inventories will cause the revised 2nd quarter GDP to fall further

( zero hedge)

v)The list of retails in danger of bankruptcy now climb to 22

( zero hedge)

vi)Again Alan Dershowitz states that there is no obstruction case and was glad when Comey stated that yes, the President can say who will be prosecuted and who will not be prosecuted.

( the Fly)

Let us head over to the comex:

The total gold comex open interest FELL BY A GOOD SIZED 8.583 CONTRACTS DOWN  to an OI level of 488,383 WITH THE FALL(WHACK) IN THE PRICE OF GOLD ($13.80 with YESTERDAY’S trading). The bankers were expecting more gold leaves to fall from the gold tree and as such they could not cover as much as they wanted.

We are now in the contract month of JUNE and it is one of the BETTER delivery months  of the year. In this JUNE delivery month we had A  LOSS OF 84 contract(s) FALLING TO  1997.  We had 57 notices filed yesterday so we LOST ANOTHER 27  contracts or an additional 2700 oz will NOT stand for delivery in this very active delivery month of June AND WITHOUT A SHADOW OF DOUBT THESE 27 CONTRACTS RECEIVED AN EFP CONTRACT WHICH ENTITLES THEM TO A FIAT BONUS PLUS A FUTURE GOLD CONTRACT/OR A LONG CALL OR MOST LIKELY A LONDON BASED FORWARD GOLD CONTRACT. THESE EFP’S ARE PRIVATE OFF COMEX TRANSACTIONS. THE STUBBORN LONGS WHO ARE REMAINING STOIC ARE SO FAR REFUSING THAT FIAT BONUS

Below is a little background on the EFP contracts  initiated by our bankers:
We now know for certain that private EFP contracts are given by the bankers when faced with an upcoming active delivery month and they state that this is for emergency purposes only and that they do not have actual physical metal to deliver upon in the front month.  We just do not know the makeup of that private deal.  It is my contention that the longs in GOLD FOR INSTANCE at the end of MAY(for June contracts) were given a fiat bonus plus a long “in the money” call for a  future July contract or a August FUTURE contract or MAYBE EVEN A LONDON BASED FORWARD GOLD CONTRACT. . and this is why the total comex open interest complex obliterates as we enter first day notice.  So now everything makes sense: the obliteration of OI as we enter first day notice has not really occurred in the real sense but replaced with a future long contract call and/or an off -comex London based gold contract  with some bonus money for their effort.

The non active July contract LOST 69 contracts to stand at 2,258 contracts. The next big active month is August and here the OI LOST 9019 contracts DOWN to 363,535.

We had 13 notice(s) filed upon today for 1300 oz


The next big active month will be July and here the OI LOST 4242 contracts DOWN to 122,456 as we start to wind down before first day notice Friday, June 30.  July will be interesting to watch in silver as we witness fewer players pitching for EFP contracts than with gold.

The month of August, a non active month picked up 4 contracts to stand at 28.  The next big active delivery month for silver will be September and here the OI already jumped by another 3049 contracts up to 43,021.

I will give you a snapshot as to what happened last year at the exact number of days before first day notice:

June 9.2016:  103,688 contracts were still outstanding vs 122,456 contracts June 9.2017

At the conclusion of June, the final standing for physical silver was 3,080,000 oz and we have already surpassed that number this year  (3,945,000 oz).

The line in the sand is $18.50 for silver and again it has been defended by the criminal bankers.  Once this level is pierced, the monstrous billion oz of silver shorts will blow up. The bankers are defending the Alamo with their last stand at the $18.50 mark. THE NEW RECORD HIGH IN OPEN INTEREST WAS SET FRIDAY APRIL 21/2017 AT:  234,787.

We had 84 notice(s) filed for 420,000 oz for the June 2017 contract

VOLUMES: for the gold comex

Today the estimated volume was 200,263 contracts which is GOOD

Yesterday’s confirmed volume was 264,414 contracts  which is GOOD

volumes on gold are STILL HIGHER THAN NORMAL!

INITIAL standings for JUNE
 June 9/2017.
Gold Ounces
Withdrawals from Dealers Inventory in oz   nil
Withdrawals from Customer Inventory in oz  
 27,352.819 oz
Deposits to the Dealer Inventory in oz nil  oz


Deposits to the Customer Inventory, in oz 
 nil oz
No of oz served (contracts) today
13 notice(s)
1300 OZ
No of oz to be served (notices)
1984 contracts
198,400 oz
Total monthly oz gold served (contracts) so far this month
2118 notices
211800 oz
6.5878 tonnes
Total accumulative withdrawals  of gold from the Dealers inventory this month   NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month   143,815.8 oz
Today we HAD  0 kilobar transaction(s)/ 
We had 0 deposit into the dealer:
total dealer deposits: nil oz
We had NIL dealer withdrawals:
total dealer withdrawals:  NIL oz
we had no dealer deposits:
total dealer deposits:  nil oz
we had 0  customer deposit(s):
total customer deposits; nil  oz
We had 1 customer withdrawal(s)
 i) out of Brinks:  27,352.819 oz
total customer withdrawal: 27,352.819  oz
 we had 0 adjustments:

Today, 0 notice(s) were issued from JPMorgan dealer account and 2 notices were issued from their client or customer account. The total of all issuance by all participants equates to 13  contract(s)  of which 0 notices were stopped (received) by j.P. Morgan dealer and 7 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account.

To calculate the initial total number of gold ounces standing for the JUNE. contract month, we take the total number of notices filed so far for the month (2118) x 100 oz or 211,800 oz, to which we add the difference between the open interest for the front month of JUNE (1997 contracts) minus the number of notices served upon today (13) x 100 oz per contract equals 410,200  oz, the number of ounces standing in this active month of JUNE.
Thus the INITIAL standings for gold for the JUNE contract month:
No of notices served so far (2118) x 100 oz  or ounces + {(1997)OI for the front month  minus the number of  notices served upon today (13) x 100 oz which equals 410200 oz standing in this  active delivery month of JUNE  (12.7589 tonnes)
Total dealer inventory 900,191.813 or 27.99 tonnes DEALER RAPIDLY LOSING GOLD
Total gold inventory (dealer and customer) = 8,775,733.659 or 272.96 tonnes 
Over a year ago the comex had 303 tonnes of total gold. Today the total inventory rests at 272.96 tonnes for a  loss of 30  tonnes over that period.  Since August 8/2016 we have lost 81 tonnes leaving the comex. However I am including kilobar transactions and they are very suspect at best
I have a sneaky feeling that these withdrawals of gold in kilobars are being used in the hypothecating process  and are being used in the raiding of gold!

The gold comex is an absolute fraud.  The use of kilobars and exact weights makes the data totally absurd and fraudulent! To me, the only thing that makes sense is the fact that “kilobars: are entries of hypothecated gold sent to other jurisdictions so that they will not be short with their underwritten derivatives in that jurisdiction.  This would be similar to the rehypothecated gold used by Jon Corzine at MF Global.
And now for silver
June INITIAL standings
 June 9 2017
Silver Ounces
Withdrawals from Dealers Inventory  nil
Withdrawals from Customer Inventory
 nil oz
Deposits to the Dealer Inventory
NIL oz
Deposits to the Customer Inventory 
 nil oz
No of oz served today (contracts)
(420,000 OZ)
No of oz to be served (notices)
7 contracts
( 35,000 oz)
Total monthly oz silver served (contracts) 783 contracts (3,915,000 oz)
Total accumulative withdrawal of silver from the Dealers inventory this month  NIL oz
Total accumulative withdrawal  of silver from the Customer inventory this month 2,295,343.5 oz
today, we had  0 deposit(s) into the dealer account:
total dealer deposit: NIL  oz
we had Nil dealer withdrawals:
total dealer withdrawals: nil oz
we had 0 customer withdrawal(s):
 We had 0 Customer deposit(s):
***deposits into JPMorgan have now stopped
In the month of March and February, JPMorgan stopped (received) almost all of the comex silver contracts.
why is JPMorgan bringing in so much silver??? why is this not criminal in that they are also the massive short in silver
total customer deposits  nil oz
 we had 0 adjustment(s)
The total number of notices filed today for the JUNE. contract month is represented by 84 contract(s) for 420,000 oz. To calculate the number of silver ounces that will stand for delivery in JUNE., we take the total number of notices filed for the month so far at 783 x 5,000 oz  = 3,920,000 oz to which we add the difference between the open interest for the front month of JUNE (91) and the number of notices served upon today (84) x 5000 oz equals the number of ounces standing


Thus the initial standings for silver for the JUNE contract month:  718(notices served so far)x 5000 oz  + OI for front month of JUNE.(91 ) -number of notices served upon today (84)x 5000 oz  equals  3,950,000 oz  of silver standing for the JUNE contract month.
We gained 6 contracts or an additional 30,000 oz will stand for delivery. WE ALSO HAD 0 EFP CONTRACTS THAT WERE ISSUED AS THE LONGS REFUSED A FIAT BONUS: THEY WANT THEIR PHYSICAL SILVER.
Volumes: for silver comex
Today the estimated volume was 79,174 which is HUGE
Yesterday’s  confirmed volume was 101,041 contracts which is HUGE
Total dealer silver:  34.315 million (close to record low inventory  
Total number of dealer and customer silver:   204.477 million oz
The record level of silver open interest is 234,787 contracts set on April 21./2017  with the price at that day at  $18.42
The previous record was 224,540 contracts with the price at that time of $20.44

NPV for Sprott and Central Fund of Canada

1. Central Fund of Canada: traded at Negative 7,5 percent to NAV usa funds and Negative 7.4% to NAV for Cdn funds!!!! 
Percentage of fund in gold 61.7%
Percentage of fund in silver:38.2%
cash .+0.1%( June 9/2017) 
2. Sprott silver fund (PSLV): STOCK  6.53%!!!! NAV  ??? (june 9/2017) 
3. Sprott gold fund (PHYS): premium to NAV FALLS to -0.52% to NAV  (June 9/2017 )
Note: Sprott silver trust back  into POSITIVE territory at -?? /Sprott physical gold trust is back into POSITIVE/ territory at -0.52%/Central fund of Canada’s is still in jail  but being rescued by Sprott.

Sprott’s hostile 3.1 billion bid to take over Central Fund of Canada

(courtesy Sprott/GATA)

Sprott makes hostile $3.1 billion bid for Central Fund of Canada

 Section: Daily Dispatches

From the Canadian Press
via Canadian Broadcasting Corp. News, Toronto
Wednesday, March 8, 2017


Toronto-based Sprott Inc. said Wednesday it’s making an all-share hostile takeover bid worth $3.1 billion US for rival bullion holder Central Fund of Canada Ltd.

The money-management firm has filed an application with the Court of Queen’s Bench of Alberta seeking to allow shareholders of Calgary-based Central Fund to swap their shares for ones in a newly-formed trust that would be substantially similar to Sprott’s existing precious metal holding entities.

The company is going through the courts after its efforts to strike a friendly deal were rebuffed by the Spicer family that controls Central Fund, said Sprott spokesman Glen Williams.

“They weren’t interested in having those discussions,” Williams said.

 Sprott is using the courts to try to give holders of the 252 million non-voting class A shares a say in takeover bids, which Central Fund explicitly states they have no right to participate in. That voting right is reserved for the 40,000 common shares outstanding, which the family of J.C. Stefan Spicer, chairman and CEO of Central Fund, control.

If successful through the courts, Sprott would then need the support of two-thirds of shareholder votes to close the takeover deal, but there’s no guarantee they will make it that far.

“It is unusual to go this route,” said Williams. “There’s no specific precedent where this has worked.”

Sprott did have success last year in taking over Central GoldTrust, a similar fund that was controlled by the Spicer family, after securing support from more than 96 percent of shareholder votes cast.

The firm says Central Fund’s shares are trading at a discount to net asset value and a takeover by Sprott could unlock US$304 million in shareholder value.

Central Fund did not have any immediate comment on the unsolicited offer. Williams said Sprott had not yet heard from Central Fund on the proposal but that some shareholders had already contacted them to voice their support.

Sprott’s existing precious metal holding companies are designed to allow investors to own gold and other metals without having to worry about taking care of the physical bullion.


At 3:30 pm we receive the COT which gives position levels of our major players. However because of the EFP’s issued, makes this report totally distorted

The report encompasses May 31, first day notice.  You will recall we had a massive obliteration of open interest on the day but since then more paper gold has been added.

what an absolute fraud!

First the Gold COT:

Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
312,240 107,775 29,475 108,298 324,652 450,013 461,902
Change from Prior Reporting Period
61,698 24,323 -6,074 4,547 37,682 60,171 55,931
188 96 78 48 59 268 206
Small Speculators  
Long Short Open Interest  
44,028 32,139 494,041  
-376 3,864 59,795  
non reportable positions Change from the previous reporting period
COT Gold Report – Positions as of Tuesday, June 6, 2


those large specs that have been long in gold added an unheard 61,698 contracts

those large specs that have been short in gold added 24,323 contracts to their short list



those commercials that have been long in gold added 4547 contracts to their long side

those commercials that have been short in gold added a whopping 37,682 contracts.


those small specs that have been long in gold pitched 376 contracts to their long side

those small specs that have been short in gold added 3864 contracts to their short side.


there is only one word to describe this: fraud!

Onto silver: note the difference between gold and silver

Silver COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
101,713 35,772 31,973 52,429 128,053 186,115 195,798
5,145 618 -158 -432 4,110 4,555 4,570
95 48 59 35 38 159 123
Small Speculators
Long Short Open Interest
22,852 13,169 208,967
-823 -838 3,732
non reportable positions Change from the previous reporting period
COT Silver Report – Positions as of Tuesday, June 6, 2017


those large specs that have been long in silver added 5145 contracts to their long side

those large specs that have been short in silver added 618 contracts to their short side



those commercials that have been long in silver covered a tiny 432 contracts from their long side

those commercials that have been short in silver added only 4110 contracts to their short side



those small specs that have been long in silver covered 564 contracts to their long side

those small specs that have been short in silver covered 570 contracts.


note the difference between gold and silver. Do not read anything into these figures as everything is paper.  there is no physical settlement as EFP’s distort especially in gold.

And now the Gold inventory at the GLD

June 9/no change in inventory at the GLD/Inventory rests at 867.00 tonnes


June 7 a huge change in inventory/a deposit of 13.93 tonnes/inventory rests at 864.93 tonnes

June 6/ no changes in inventory at the GLD/Inventory remains at 851.00 tonnes

June 5.2017/no changes at the GLD/Inventory remain at 851.00 tonnes

June 2/2017/a huge deposit of 3.55 tonnes of gold into the GLD/Inventory rests at 851.00 tonnes


May 31./ no change in gold inventory at the GLD/Inventory rests at 847.45 tonnes

May 30/no change in gold inventory at the GLD/Inventory rests at 847.45 tonnes

May 26./no change in inventory at the GLD/Inventory rests at 847.45 tonnes

May 25./no change in inventory at the GLD/Inventory rests at 847.45 tonnes

May 24/no change in inventory at the GLD/inventory rests at 847.45 tonnes

May 23/a paper withdrawal of 5.03 tonnes of gold from the GLD/Inventory rests at 847.45 tonnes



May 18/a withdrawal of 1.18 tonnes of gold from the GLD/Inventory rests at 850.71

May 17/no change in the GLD inventory/inventory rests at 851.89 tonnes

May 16./ no change in the GLD inventory/inventory rests at 851.89 tonnes

May 15/no change in the GLD inventory/inventory rests at 851.89 tonnes

May 12/no changes in GLD/inventory rests at 851.89 tonnes

may 11/no changes in GLD inventory/inventory rests at 851.89 tonnes

May 10/no changes in GLD inventory/inventory rests at 851.89 tonnes/

May 9/a withdrawal of 1.19 tonnes from the GLD/Inventory rests tonight at 851.89 tonnes

May 8/no change in inventory at the GLD/Inventory rests at 853.08 tonnes

May 5/no changes in inventory at the GLD/Inventory rests at 853.08 tonnes

May 4/A tiny change in inventory at the GLD /a withdrawal of .28 tonnes to pay for fees/inventory rests at 853.08 tonnes

May 3/no change in inventory at the GLD/Inventory rest at 853.36 tonnes

May 2/no change in inventory at the GLD/Inventory rests at 853.36 tonnes

May 1/ no changes in inventory at the GLD/inventory rests at 853.36 tonnes

June 9 /2017/ Inventory rests tonight at 867/00 tonnes


Now the SLV Inventory

June 9/no change in silver inventory at the SLV/Inventory rests at 339.605 million oz/


June 7/no change in inventory at the SLV/inventory rests at 339.605 million oz/

June 6/no change in inventory at the SLV/Inventory rests at 339.605 million oz.

June 5/a huge change at the SLV/a withdrawal of 1.371 million oz /inventory rests at 339.605 million oz/

June 2/no change in silver inventory at the SLV/Inventory rests at 340.976 million oz/


May 31./ no change in silver inventory at the SLV/inventory rests at 340.976 million oz/

May 30/no change in silver inventory at the SLV/inventory rests at 340.976 million oz

May 26/another paper withdrawal of 946,000 oz of silver from the SLV with silver rising/inventory rests at 340.976 million oz

May 25/no change in silver inventory at the SLV/Inventory rests at 341.922 million oz

May 24./a “paper” withdrawal of 1.893 million oz from the SLV/inventory rests tonight at 341.922 million oz

May 23/no change in silver inventory at the SLV/inventory rests at 343.815 million oz

May 19/no change in silver inventory at the SLV/Inventory rests at 343.815 million oz.

may 18/2017/another big deposit of 1.42 million oz added to the SLV/inventory rests at 343.815 million oz.

may 17/no change in silver inventory at the SLV/Inventory rests at 342.395 million oz/

May 16./we had a huge addition of 1.416 million oz of silver into the SLV/inventory rests at 342.395 million oz

May 15/no changes in silver inventory/inventory rests at 340.979 million oz/

May 12/a huge change in silver: a deposit of 2.369 million oz/inventory rests at 340.979 million oz

May 11/no changes in silver inventory at the SLV/Inventory rests at 338.610 million oz

May 10/ a gigantic 3.833 million oz of silver added to the SLV and this occurred with the constant whacking of silver for the past 17 trading sessions/inventory rests at 338.610 million oz

may 9Again, no movement of inventory at the SLV. Inventory rests at 334.777 million oz

May 8/no change in silver inventory at the SLV/inventory rests at 334.777 million oz/

May 5/Strange!! no change in silver inventory at the SLV/Inventory rests tonight at 334.777 million oz

May 4/a very tiny withdrawal of 144,000 oz to pay for fees/inventory rests tonight at 334.777 million oz/

May 3/strange!! with the drop in price of silver we had no change in inventory at the SLV/inventory rests at 334.921 million oz

May 2/extremely strange again/a huge 3.502 million oz deposit into the SLV despite silver being in the toilet for the past several trading days.Inventory 334.921 million oz

may 1/extremely strange/with silver being walloped these past several days, the inventory rises again by a huge 1.136 million oz/(maybe someone can explain this phenomena??)

June 9.2017: Inventory 339.605  million oz
We are going to provide GOFO rates  (gold) each day and shortly silver
courtesy of Bron Suchecki of Monetary Metals
and here is today’s figures:

The actual figures can be found on our home page https://monetary-metals.com/

with this box in the left side

6 month: 1.26%

12 month:  1.43%


Unlocking the Productivity of Gold
M: +61 4 1210 1912 | bron@monetary-metals.com
Skype: bron.suchecki
Twitter: @bronsuchecki
Website: monetary-metals.com
Use this link to encrypt and safely send confidential documents to Monetary Metals®


Major gold/silver trading/commentaries for FRIDAY



Gold in Pounds Surges 1.5% To £1,001/oz – UK Political Turmoil Likely

– Gold in pounds rises 1.5% from £986/oz to £1,001/oz after shock UK election result

– Gold reaches 7 week high and surges 6% in the last 30 days from £942/oz to £1,001/oz

Gold in pounds – 1 month

– Very robust gold sales experienced by gold brokers, including GoldCore, in the UK this week and today 

May’s ruling Conservative party loses overall majority and prospect of hung U.K. parliament

PM May vulnerable from within Tory Party and Corbyn has called for her to resign

Corbyn and Labour party on the rise which may pose risks to vulnerable London property market and UK economy as investor sentiment towards UK sours further

– Vote set to boost political turmoil in UK, complicate Brexit talks with EU whose hand is strengthened

As reported by Bloomberg News this morning:

Gold priced in sterling surged to the highest level in more than seven weeks as Prime Minister Theresa May failed to win an overall majority in the U.K. election, signaling further political turmoil less than a year after Britain voted to leave the European Union.

The outcome throws into doubt May’s future as prime minister just days before negotiations are due to start on the country’s exit from the EU.

Instead of increasing her majority to strengthen her hand in talks with European leaders, May has lost seats and the Conservative Party has fallen short of an absolute majority in parliament.

“The weakness in the pound has pushed up gold prices in sterling,” said Madhavi Mehta, an analyst at Kotak Commodity Services Pvt in Mumbai. “The pound has weakened amid prospects that the Brexit negotiations will be long and arduous.”

Spot gold rose as much as 2.2 percent to £1,007.52 pounds an ounce before trading at 1,002.34 pounds by 3:32 p.m. in Singapore. Bullion in the U.S. currency retreated 0.4 percent to $1,272.93 an ounce, extending its decline from a seven-month high of $1,296.15. It’s heading for the first weekly drop since early May.

The Conservative Party was on course to win 318 seats, down from 330 held at the start of the campaign and short of the 326 seats needed for an overall majority. Jeremy Corbyn’s Labour Party will take 261 seats, a gain of 29 seats, according to BBC projections.

The shock results came after a day when the European Central Bank kept interest rates unchanged and former FBI Director James Comey gave testimony to a Senate panel about meetings with President Donald Trump that centered on whether the president sought to quash part of a federal probe into Russian meddling in the 2016 election.

While bullion prices in dollar terms have come off seven-month highs, assets in the SPDR Gold Trust, the largest exchange-traded fund backed by the metal, have expanded to 867 metric tons, the highest level since December.

Full article on Bloomberg

News and Commentary

Gold in Pounds Rises to Seven-Week High on Hung U.K. Parliament (Bloomberg.com)

Sterling Falls Sharply On Hung Parliament In UK General Election (Investing.com)

Gold Imports by India Jump Fourfold as Tax Fear Spurred Stocking (Bloomberg.com)

Banco Popular faced eurozone’s first large-scale bank run – ECB (Reuters.com)

With gold mining activity nearing pre-boom levels, is this the end of the downturn? (ABC.net)

Source: Zero Hedge

Someone Just Dumped $4 Billion Of Gold Futures Ahead Of Comey Testimony (ZeroHedge.com)

40.5 Tonnes Of Paper Gold Dumped In 4 Minutes (InvestmentResearchDynamics.com)

The World’s Most And Least Peaceful Countries (Statista.com)

Spain’s Banco Popular Bailed In, Acquired By Santander For €1.00 (ZeroHedge.com)

India’s Tax Change Will Increase Gold Demand To 950 Tonnes By 2020 (Barrons.com)



Trading today in gold:

the Crooks are at it again:

(courtesy zero hedge)

UK Election Chaos Sparks Selling Spree In Bonds & Bullion

Because nothing says sell safe-havens like a shocking election result in the nation at the center of European Union chaos…

Exit Polls signal May failure… sell Gold


At least bonds initial reaction made some sense… but since then it’s been Sell the dip in yields and buy stocks… because more QE will paper over any political cracks, we’re sure…

Some have suggested that this is due to the May coalition implying a ‘softer’ Brexit, implying less global turmoil, implying less need for safety? We remind those ‘thinkers’, like pregnancy, there’s no half-Brexit.



Mexico owes Canadian miners more than 360 million dollars with Goldcorp the lions share at 230 million

(courtesy Reuters/GATA)

Mexico owes Canadian miners more than $360 million, Reuters says

By Alexandra Alper and Susan Taylor
Thursday, June 8, 2017Mexico’s tax agency is holding more than $360 million in tax rebates owed to six Canadian miners, including $230 million to Goldcorp Inc., according to sources and official documents seen by Reuters, escalating the situation into a showdown between the Mexican government and Canadian mining firms operating in Mexico.In a string of meetings, Canadian officials have pressed Mexico to fix the problem, which hamstrings mining companies’ ability to invest in operations and is particularly difficult for smaller, cash-strapped miners and explorers, people familiar with the matter said.Vancouver-based Goldcorp declined to comment on its outstanding refund, which represents 142 percent of its 2016 net profit and 6 percent of its full-year revenue.Goldcorp, the world’s No. 3 gold miner by market value, is owed the largest amount, according to documents seen by Reuters, followed by Torex Gold Resources, a small, Toronto-based miner that began commercial production at its Mexico mine last year and is waiting on a refund of some $66.5 million. …… For the remainder of the report:http://www.reuters.com/article/us-mexico-mining-tax-exclusive-idUSKBN18Z…

* * *


Chris Powell comments on the huge raid we have been experiencing this past two days:

(courtesy Chris Powell/GATA)


Gold’s counterintuitive movement is an old story but it can’t be told


11:54a ET Thursday, June 8, 2017

Dear Friend of GATA and Gold:

Dave Kranzler of Investment Research Dynamics reports that a huge amount of “paper” gold was dumped on the futures exchange in New York today, apparently in connection with the anticipated congressional testimony of former FBI Director James Comey:


Kranzler writes: “One/some/several ‘entities’ decided at 9:38 this morning that it was necessary to dump 14,315 contracts of paper gold. This is just the August contract. In total a lot more was unloaded. This represents 1.43 million ounces of gold. The Comex is showing only 900,000 ounces of ‘gold’ as ‘registered,’ or available for delivery in June, July, and August (assuming all of that gold is actually sitting physically in the Comex vaults as reported). If we make that generous assumption, 531,000 ounces of paper gold were naked-shorted.”

The counterintuitive movement of the gold price long has been one of GATA’s major points. It came to the attention of the Bank of Russia back in 2004, when the bank’s deputy chairman, Oleg V. Mozhaiskov, cited it in remarks to the London Bullion Market Association meeting in Moscow.

Mozhaiskov said: “The statistical correlation between the market prices of dollar and gold is obvious. For the problem we discuss today it means specifically that gold, in addition to its unique physical and chemical properties used in industry, has retained its particular monetary attractiveness for cautious financial investors, and its market price is still heavily influenced by the state of the international monetary system.

“This dualism in gold price formation distinguishes it from other commodities and makes the movements in the price sometimes so enigmatic that market analysts need to invent fantastic intrigues to explain price dynamics. Many have heard of the group of economists who came together in the society known as the Gold Anti-Trust Action Committee and started a number of lawsuits against the U.S. government, accusing it of organizing an anti-gold conspiracy. They believe that with the assistance of a number of major financial institutions (they mention in particular the Bank for International Settlements, J.P. Morgan Chase, Citigroup, Deutsche Bank, and others), some senior officials have been manipulating the market since 1994. As a result, the price dropped below US$300 an ounce at a time when it should, if it had kept pace with inflation, have reached US$740-760.

“I prefer not to comment on this information but dare assume that the specific facts included in the lawsuits might have given ground to suspicion that the real forces acting on the gold market are far from those of classic textbooks that explain to students how prices are born in a free market.”

Mozhaiskov’s address is posted at GATA’s internet site here:


GATA often has quoted the incisive remark of South African gold advocate Peter George on the eve of GATA’s conference in Dawson City, Yukon, in August 2005, a remark captured at the 35-second mark in the first video frame at GATA’s Internet site here:


George said: “In the last 10 years the central banks have effectively shown that when there is a real crisis, gold actually goes down. And it’s so blatant, it’s a joke.”

Your secretary/treasurer has put it more sardonically, as in a dispatch in 2012:


“If the Northern Hemisphere was destroyed in a nuclear war, the Federal Reserve, JPMorganChase, and HSBC would get some brokers to Sydney, Rio de Janeiro, and Johannesburg to sell gold futures massively and drive the price down by at least 5 percent. Kitco market analyst Jon Nadler would crawl out from the rubble and opine to the cockroaches that the gold price had fallen because so many gold buyers had been killed, as he always had predicted would happen. CPM Group’s Jeff Christian would telephone New Zealand not to worry because he was flying down with reams of gold-colored paper that would work just as well in Wellington as it did in New York as long as nobody asked what was behind it. And the World Gold Council would console itself with whatever high-fashion models could be found wearing nose rings in French Polynesia.”

Mainstream financial news organizations know all about this but are not likely to find it curious while JPMorganChase, HSBC, and other bullion and investment banks remain among their largest advertisers and while their organizations are owned by large multi-media corporations heavily regulated by governments. For as Upton Sinclair observed in 1934 as he tried to break through the media oligopoly of his time in his campaign for governor of California, “It is difficult to get a man to understand something when his salary depends upon his not understanding it.”

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.




A great reason to whack gold today:  Gold imports jump 400% as the increase in GST tax fear as spurred stocking of gold

(courtesy Bloomberg)

Gold imports by India jump fourfold as tax fear spurred stocking

By Swansy Afonso and Shruti Srivastava
Bloomberg News
Thursday, June 8, 2017India, which vies with China as the world’s top gold consumer, saw a fourfold increase in imports of the precious metal in May as traders stocked up fearing that the government would fix a higher rate for jewelry under a new national goods tax to be implemented from next month.Overseas purchases advanced to 126 metric tons in May from 31.5 tons a year earlier, according to a person familiar with provisional data from the finance ministry, who asked not to be identified as the data aren’t public. Finance Ministry spokesman D. S. Malik declined to comment on the data.India fixed the goods and services tax for gold at 3 percent, effective from July 1. The rate is lower than expected, Ketan Shroff, joint secretary at the India Bullion and Jewellers Association Ltd. said on Monday. The duty will replace more than a dozen domestic levies including excise tax and state tariffs, making India a common market for the first time. …… For the remainder of the report:https://www.bloomberg.com/news/articles/2017-06-08/gold-imports-by-india…

* * *


totally absurd:  Jim Cramer discusses bitcoin and highlights that it may hit 1 million dollars.

(courtesy Mish Shedlock/Mishtalk)



Jim Cramer Goes Batty: “Bitcoin May Hit $1,000,000”; Act Now Before It’s Too Late!

Authored by Mike Shedlock via MishTalk.com,

It’s hard to know when bubbles will end but when analysis goes ape-sh*t batty, it’s easy to know the bubble exists.

Jim Cramer’s analysis of Bitcoin provides a perfect example.

CNBC reports Cramer says it’s possible bitcoin could reach $1 million one day.

The price of digital currency stockpiled by companies to pay off potential cyberthreats could reach $1 million one day, CNBC’s Jim Cramer said Wednesday.


Cramer was responding to a recent comment by Business Insider CEO Henry Blodget, who said bitcoin could go to $1 million.


“I think it could because the European banks are frantically trying to buy them so they can pay off ransomware. It’s a short-term way to be able to deal with cybersecurity. It is the way to pay off the bad guys,” Cramer said on “Squawk on the Street.”


“When you get hit and you’re not sure how to do bitcoin, these cyberattackers have customer service desks,” Cramer said.

What Blodget Really Said

Blodget also mentioned the downside: “Bitcoin could go to $1 million (or fall to $0),” said Blodget maintains the view that “ultimately, Bitcoin has no intrinsic value.”

New Target $1,000,000

The Coin Telegraph reports Bitcoin Price Can Reach $1 Mln: CNBC’s Jim Cramer.

On the CNBC show “Squawk on the Street,” Cramer stated that the demand toward Bitcoin is rapidly increasing and because of Bitcoin’s decentralized nature, its price could potentially enter the $1 mln region, which would bring the market cap of Bitcoin to tens of trillions of dollars.


However, Cramer’s reasoning behind his Bitcoin price prediction was fundamentally flawed as he failed to grasp the core purpose of Bitcoin and why investors are starting to purchase Bitcoin.


“I think it could because the European banks are frantically trying to buy them so they can pay off ransomware. It’s a short-term way to be able to deal with cybersecurity. It is the way to pay off the bad guys.”


Such claim is evidently non-factual because the European Bitcoin exchange market only accounts for nine percent of the global Bitcoin exchange market and it is behind the US, Japan, China and South Korea in trading volumes.


More importantly, Cramer’s statement fails to consider the fact that Bitcoin is being utilized as a currency and safe haven asset more than it is being used as a lifeline to feed ransomware developers.


In the case of WannaCry ransomware, the biggest ransomware attack in history, the distributors earned less than $100,000. That is only 0.0012 percent of the European Bitcoin exchange market. Thus, to say that Bitcoin price is rising because of 0.0012 percent of traders from the fifth largest Bitcoin exchange market is not an accurate depiction of the surging Bitcoin price.


Regardless, Cramer believes that Bitcoin price will reach $1 mln one day due to its rapidly increasing trading volumes and demand from investors.

Frantically “Trying” to Buy Bitcoins?!

The idea that banks need to “try” to buy Bitcoins is absurd.

Do. Or do not. There is no try.

Customer Service Desks

Cyberattackers have “customer service desks”? really? And they can be trusted? And banks don’t have backups? So banks need to “try” to stockpile Bitcoins as a precaution? And that will push the price to $1,000,000?

At least Henry Blodget discussed the downside without absurd hype.

Action to Take

If you think Bitcoin has any chance of hitting $1,000,000 then buy one for $2,725 or so and relax. Bitcoin is a life-long insurance policy.

Unlike term insurance, Bitcoin never expires. And unlike real estate, it’s easily divisible.

So buy one, put it in your will, and pass it to your kids. But make them promise to hold on to it. After all, a single Bitcoin may very well be worth $1 billion someday!

Why not? Why not $10 billion?

Even at $1 million, the world would be flooded with tens-of-thousands or hundreds-of-thousands of dollar “billionaires”.

Hyperinflation Anyone?

Back in the real world, please think of what it would take for Bitcoin to hit $1,000,000. The answer is hyperinflation. The US dollar would essentially go to zero vs everything.

So when Cramer or anyone else discusses the possibility of $1,000,000 Bitcoins, they are really discussing the possibility of hyperinflation in US dollars.

Act Now Before It’s Too Late

This setup reminds me of a post I did in 2005: It’s Too Late.

I think it’s too late.


In fact I know it’s too late.


How do I know?


The following Email I received tonight should explain it nicely.


When you see stuff like this, not only is it too late, it’s way too late.


As a practical matter, and without all the hype, I will stick with gold even as I wish I had taken out some Bitcoin insurance at $1, $10, $100, or even $1,000.

Supposedly, it’s still not too late.



Your early FRIDAY morning currency, Asian stock market results,  important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight


1 Chinese yuan vs USA dollar/yuan  WEAKER 6.7971(DEVALUATION SOUTHBOUND   /OFFSHORE YUAN MOVES  WEAKER TO ONSHORE AT   6.7913/ Shanghai bourse CLOSED UP 8.06 POINTS OR 0.26%  / HANG SANG CLOSED DOWN 32.77 POINTS OR 0.13% 

2. Nikkei closed UP 104.00 POINTS OR 0.52%   /USA: YEN RISES TO 110.39

3. Europe stocks OPENED MIXED        ( /USA dollar index RISES TO  97.38/Euro DOWN to 1.1179


3c Nikkei now JUST BELOW 17,000

3d USA/Yen rate now well below the important 120 barrier this morning

3e WTI::  45.78 and Brent: 47.94

3f Gold DOWN/Yen DOWN

3g Japan is to buy the equivalent of 108 billion uSA dollars worth of bond per month or $1.3 trillion. Japan’s GDP equals 5 trillion usa./“HELICOPTER MONEY” OFF THE TABLE FOR NOW /REVERSE OPERATION TWIST ON THE BONDS: PURCHASE OF LONG BONDS  AND SELLING THE SHORT END

Japan to buy 100% of all new Japanese debt and by 2018 they will have 25% of all Japanese debt. Fifty percent of Japanese budget financed with debt.

3h Oil UP for WTI and UP for Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO  +.260%/Italian 10 yr bond yield DOWN  to 2.10%    

3j Greek 10 year bond yield FALLS to  : 6.01???  

3k Gold at $1273.00  silver at:17.35 (8:15 am est)   SILVER BELOW  RESISTANCE AT $18.50 

3l USA vs Russian rouble; (Russian rouble DOWN 4/100 in  roubles/dollar) 56.95-

3m oil into the 45 dollar handle for WTI and 47 handle for Brent/

3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation  (already upon us). This can spell financial disaster for the rest of the world/China forced to do QE!! as it lowers its yuan value to the dollar/GOT A SMALL SIZED DEVALUATION SOUTHBOUND 


30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning  0.9714 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0861 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.


3r the 10 Year German bund now POSITIVE territory with the 10 year FALLS to  +0.260%

The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”.  Next step for Greece will be the recapitalization of the banks and that will be difficult.

4. USA 10 year treasury bond at 2.204% early this morning. Thirty year rate  at 2.861% /POLICY ERROR)GETTING DANGEROUSLY HIGH

5. Details Ransquawk, Bloomberg, Deutsche bank/Jim Reid.

(courtesy Jim Reid/Bloomberg/Deutsche bank/zero hedge)

S&P Futures At Record High After “Shocking” UK Election Result


“Triple Threat Thursday” is now a distant memory, with both the ECB and Comey testimony “non-events” for the market, although the UK general election was a shocker in which contrary to expectations, Theresa May lost her majority in Parliament, sending sterling tumbling overnight and prompting even more confusion about the UK’s political fate and the future of Brexit. That however did not spook risk assets, and on Friday morning, European stocks gained with Asian stocks little changed, while S&P500 futures were set for new all time highs. Just like after Brexit, it was U.K. stocks that rallied the most among developed markets as the pound fell.

With the majority of seats counted, May’s Conservatives had no way to win an outright majority in parliament. That raised fears the political turmoil could delay and confound talks on leaving the European Union, which are due to start in less than two weeks, and the pound shed over 2 percent against the dollar.

Sterling dropped as low as $1.2636 in early London trading, before clawing back some ground. Yields on 10-year gilts fell 3 basis points to 1.00 percent. However, the damage contained, with S&P futures edging up 0.2 percent to 2,434, and just shy of record highs.

“The uncertainty is bad news for sterling,” said Bank of America, Merrill Lynch European equity & cross-asset strategist James Barty. “I think for the global market it doesn’t matter. Unlike Brexit, which at the time had a spillover into other markets, this is a very UK-specific thing.”

Most impacted by the UK result was the pound, which plunged the most in eight months as the election intended to strengthen Prime Minister Theresa May’s hand in negotiations with the European Union instead cast doubt over her future. The currency’s retreat gave British stocks a boost, but the election’s impact beyond the U.K. was muted.

The euro extended losses to three days, and the Stoxx Europe 600 Index swung. Fears of a supply glut continue to weigh on oil, but it managed to reverse an earlier decline.

“For now, the results of U.K. elections do not appear to be threatening the global growth story,” Mark Haefele, global chief investment officer at UBS Group AG, said in a note to clients. But for Britain,“political uncertainty is likely to more than offset any benefit from a marginally weaker pound,” he said.

The FTSE 100 Index jumped 0.8 percent. The Stoxx Europe 600 Index swung before trading little changed. Futures on the S&P 500 rose 0.1 percent. The underlying gauge advanced less than one point on Thursday, for a second day of gains.

In other overnight news, there was muted reaction to China inflation report as producer prices missed expectations, and eased further; PBOC reverse repos close to maturities; overnight Hibor falls for sixth day; Shanghai Composite closed modestly higher.

Overnight, Wall Street had also seemingly judged that the testimony of former FBI director James Comey was not life-threatening for the administration of President Donald Trump. Comey accused Trump of firing him to try to undermine the investigation into possible collusion by his campaign team with Russia’s alleged efforts to influence the 2016 election.

“I think the market is taking less of an alarmist review of this situation because there is no smoking gun here,” said Jefferies & Co money market economist Thomas Simons. “So it’s not particularly impactful for thinking about … Trump’s economic agenda to go through.”

In commodity markets, spot gold was 0.3% lower at $1,274.20 an ounce. Oil prices remained subdued, wit Brent having settled at its lowest since Nov. 29, the eve of an OPEC production cut deal.

Bulletin Headline Summary from RanSquawk

  • UK PM May’s Conservative Party failed to win a majority in the UK general election although are still the largest party in government
  • The Northern Irish DUP are expected to support the Conservatives in a “confidence and supply” arrangement, not a formal coalition
  • Theresa May is now scheduled to head to Buckingham Palace to request to form a government

Market Snapshot

  • S&P 500 futures up 0.2% to 2,434.25
  • STOXX Europe 600 down 0.1% to 388.76
  • MXAP down 0.03% to 155.14
  • MXAPJ unchanged at 505.75
  • Nikkei up 0.5% to 20,013.26
  • Topix up 0.08% to 1,591.66
  • Hang Seng Index down 0.1% to 26,030.29
  • Shanghai Composite up 0.3% to 3,158.40
  • Sensex down 0.06% to 31,193.17
  • Australia S&P/ASX 200 up 0.02% to 5,677.80
  • Kospi up 0.8% to 2,381.69
  • German 10Y yield unchanged at 0.257%
  • Euro down 0.3% to 1.1178 per US$
  • Brent Futures down 0.4% to $47.69/bbl
  • Italian 10Y yield fell 12.1 bps to 1.884%
  • Spanish 10Y yield fell 2.8 bps to 1.448%
  • Brent Futures down 0.3% to $47.70/bbl
  • Gold spot down 0.3% to $1,274.34
  • U.S. Dollar Index up 0.5% to 97.43

Top Overnight News

  • May’s Bet Fails, Pound Falls as Government Loses Majority; House Passes Dodd-Frank Rollback Bill; FDA Toughens Stance on Opioids
  • Theresa May’s future as Britain’s prime minister was thrown into doubt after her gamble to call an early election backfired spectacularly, casting uncertainty over the government’s make-up as well as the direction and timing of negotiations on leaving the European Union
  • Ousted FBI chief James Comey and President Donald Trump accused each other of lying about their private encounters in the wake of dramatic Senate testimony that centered on whether the president sought to quash part of a federal probe into Russian meddling in the 2016 election
  • Dish Network, Amazon considering extending their partnership or potentially merging sometime in the next few months
  • Saudi Arabia dwarfs Qatar on almost any measure, yet there are plenty of ways the tussle between the Gulf neighbors could end up hurting the world’s biggest oil exporter — even if it wins
  • Central banks are poised to start rowing in the one direction again

Asian equities have been somewhat unreactive to this hurdle for PM May and the uncertainty now surrounding the UK political front, with Asian bourses as well as US equity futures relatively mixed. Nikkei 225 (+0.7%) has been the outperformer thus far following the softness in the JPY, which had been looking to test yesterday’s high around 110.40. Shanghai Comp (+0.2%). and Hang Seng (-0.1 %) struggled to find any firm direction, while the marginal gains in the ASX 200 (+0.2%) were led by the rise in miners. Finally, 10yr JGB traded marginally higher as yields trickled lower throughout the session, with JGB’s also supported by the BoJ’s rinban operation.

  • Chinese CPI (May) Y/Y 1.5% vs. Exp. 1.5% (Prey. 1.2%).
  • Chinese PPI (May) Y/Y 5.5% vs. Exp. 5.6% (Prey. 6.4%)

Top Asian News

  • China’s Factory Inflation Eases as Raw Material Prices Decline
  • Philippines Suspends Resorts World Manila’s Casino Permit: BTVPh
  • Great Wall Motor Gains as Strong Pre-Orders Seen for New Model
  • Li Ka-Shing’s Firms Slump as Falling Pound Hurts Profit Outlook
  • Hong Kong Stocks Retreat From 2015 High Amid Overheating Signs
  • Dalian Iron Ore Caps Third Weekly Drop on Steel Market Outlook
  • SoftBank Boosts Japan Stocks, Beating Impact of ‘Super Thursday’
  • Little Impact Seen From U.K. Vote, ECB Meet, Comey: Asian NDFs

In European trading, the weaker GBP has benefitted UK equities with the FTSE 100 opening higher by over 1% before paring some of the gains amid the political uncertainty over what comes next. Utility companies led the way higher with SSE and Centrica both near the top of the FTSE, while large multinationals were helped by the depreciation in the GBP. Unsurprisingly, banking names such as Lloyds and RBS, declined while homebuilders also fell as the increased uncertainty could ultimately slow house purchases. Defensive sectors drove gains in other European equity markets with health care stocks performing well across the region. Gilts opened lower but recovered as UK equity markets reversed some of the gains. The UK data had little impact on UK asset classes despite industrial output rising less than expected in April, after declining for the previous three months.

Top European News

  • Young Seek Revenge on Old as Divided Britain Upends its Politics
  • Airbus Warns U.K. Government: Retain Labor Mobility to Save Jobs
  • U.K. Heads for Hung Parliament as May’s Election Gamble Fails
  • U.K. Industrial Output, Manufacturing Rise Less Than Forecast
  • DUP Said to Consider Arrangement to Ensure May Has Support: Sky
  • M&G Bond Manager Says Election Could Lead to Second Brexit Vote

In currencies, the initial reaction was seen in the GBP after the exit poll released on Thursday evening, which showed the Conservatives would fall short of a majority. GBP/USD then dropped to its lowest level in 7 weeks as reports emerged that Theresa May would not resign, although some profit taking saw GBP/USD bounce a little off its lowest levels. Other FX markets have been relatively unreactive with JPY weakness observed amid USD/JPY demand at the Tokyo fix. Today sees large options (2.1 bIn) expire at today’s 1000am NY cut. The pound weakened 1.7 percent to $1.2732 at 10:58 a.m. in London.
The yen retreated 0.3 percent to 110.35 per dollar.  The euro slipped 0.3 percent to $1.1181. The Bloomberg Dollar Spot Index added 0.4 percent, gaining for a third day.

In commodities, WTI and Brent crude futures both stabilised after the large declines seen in the early part of the week and since the OPEC meeting in early June. The market has largely shrugged off the geopolitical tensions in the Middle-East with Qatar and other Gulf countries. West Texas oil gained 0.5 percent to $45.89 a barrel, after two days of losses. Crude has slumped this week as an unexpected increase in U.S. crude stockpiles cast doubt on OPEC’s ability to rebalance world crude markets.  Gold fell 0.3 percent to $1,274.18 an ounce, declining a third day.

Looking at the day ahead, while the fallout from the UK election will no doubt be front and centre, there is also a little bit of data to get through. This morning in Europe we get more hard data points with more industrial production prints due in France and the UK along with trade data out of Germany and also the UK. In the US we are due to receive the wholesale trade report. The EU/NATO Conference is also due today. It’s worth also noting that this Sunday France begins the two-step process to elect a new National Assembly with polls due to close on Sunday evening. The second round is on June 18th.

US Event Calendar

  • 10am: Wholesale Inventories MoM, est. -0.3%, prior -0.3%
  • 10am: Wholesale Trade Sales MoM, est. 0.2%, prior 0.0%

* * *

DB’s Jim Reid concludes the overnight wrap

You’ll wake up to shock and chaos this morning here in the UK. In numbers terms this election result is a bigger surprise than Brexit or Trump if not quite on the same scale in terms of wider global market implications.

I say wake up as if you’re like me you haven’t been to bed yet so forgive my rambling. With 516 out of 650 seats declared at 4.25am the BBC/ITV forecasts are that the ruling Conservative party will fall a handful of seats short of an overall majority. They may be able to form a working majority with the help of the Northern Irish Unionist Parties (who may win around 10 seats) but if so this would still be a very weak government and PM Theresa May might be vulnerable given she staked her reputation on holding this very early election when her party had a 10-20% lead in the polls. Another election is possible at any time really. How this leaves the Brexit negotiations is a complete mystery. The range of eventual outcomes are now much wider on this front. Hard line Brexit Tories will hold more power in a weak Tory administration of some form but the possibility of fresh elections relatively soon and an alternative more soft line approach is also a possibility. Given we’re on a tight Brexit timetable this is not great news for the UK. The Europeans must be watching with some amusement. Overall it’s going to be constitutional chaos in the UK for the foreseeable future. Ironically the Conservative Party look set to win around 44% of the vote and increase their share – an impressive number in the context of recent decades. However as we discussed yesterday the return to a two party state hasn’t allowed them to run away with things.

In markets Sterling immediately tumbled -1.96% as soon as the exit poll hit the screens, touching a low of $1.2709. It’s recovered a little but is still down -1.62% versus yesterday’s close. The moves have mostly been contained in the currency. FTSE 100 futures are -0.20% while S&P 500 futures are actually up slightly. Safe havens like Gold (-0.60%) and the Yen (-0.26%) are weaker and Treasuries are flat. Bourses in Asia are generally flat to up +0.90% too.

Whatever the overall results of this election some of the stats about potential age demographics of the voters is very interesting. Sky did a poll on election day and found amongst 18-34 year olds Labour were on 63% and Conservatives 27%. With 35-54 year olds both were on 43% and over 55 year olds Labour on 23% and Conservatives on 59%. Labour made a huge push for the young who don’t normally vote in high numbers and the Conservative Party actually proposed policies that worked against their natural older vote perhaps thinking their early lead in the polls gave them an opportunity to try to balance the books more. So were the young more motivated than normal and were the elderly less motivated? It’s fascinating as this shows the dilemma a lot of politicians have around the world. We generally have a wealth divide where the older generation (who normally vote) have a high proportion of it relative to the young who are generally in debt and/or in many countries unemployed. It feels this divide is at the higher end of the historical range.

Are the young starting to rebel more and are looking for hope? Can you politically afford to attack the wealthier older voter to help redistribution? One of the big themes of our long-term study last year was that we thought we were at the end of a 35 year super cycle of policy, politics and with it interest rates and asset prices. Our argument was that the Trump and Brexit vote marked the turning point when the disenfranchised were starting to actually win elections/ referendums. If policy wasn’t increasingly calibrated to these ‘forgotten’ people then the incumbents would get voted out. What we felt was that this would mean more fiscal spending, bigger deficits and less reliance on monetary policy at least until fixed income markets rebelled and then you’d probably get central banks forced to monetise that debt. This was our slow roadmap for the future and nights like last night may be another inching towards that. As Mr Trump has discovered it’s not easy to increase spending though but I think the trend will be up in the years to come.

There’s no doubt that this will dominate the rest of Friday for markets but investors have also got the ECB to mull over following an overall fairly dovish outcome from yesterday’s policy meeting. The most significant part of the statement and as largely expected was the removal of the “or lower” rates guidance and also upgrading economic growth forecasts by 0.1pp. Mario Draghi also said that risks to the growth outlook are now “broadly balanced” which represented an upgrade to neutral. However, the inflation tone was distinctly dovish. Draghi described the outlook for core inflation for the rest of the year as “low and flat” which as our European economists aptly put is “insufficient”. Core inflation forecasts for 2018 and 2019 were revised lower by 0.1pp to 1.4% and 1.7%. Our colleagues note that these numbers are still consistent with a gradual exit but the ECB can afford to take it slowly. Our team highlight another two important points from the meeting. The first is that there was not a single hint of the ECB preparing the ground for tapering or a phasing out of QE and the second is that the Council is cautious about wage inflation. As a result, our economists have now pushed back their timing of exit. They had expected a taper pre-announcement decision in September and one-off depo hike in December. However they now expect a six-month extension of QE to be announced in December at a slower pace of €40bn. QE will likely continue in H2 2018 at a slower pace still and a oneoff depo rate hike cannot be excluded in mid-2018 if further concessions need to be made to the hawks. In summary the start of the policy rate tightening cycle is more likely to be mid-2019 than end 2018. You can find more in our economists’ report here.

Markets reacted swiftly to the ECB with the Euro edging lower initially before consolidating into the close to finish -0.38%, although it is down another -0.27% this morning and below $1.120. Benchmark Bund  (-1.3bps) and OAT (-4.8bps) yields were both lower although it was the periphery which stood out with yields down 5bps to 13bps although as you’ll see shortly for reasons as much linked to Italian politics. 10y Treasury yields were actually a little higher (+1.6bps to 2.189%) while the S&P 500, despite getting a decent boost from Banks, limped to a +0.03% close. The James Comey testimony ended up being mostly a nonevent with both sides trading blows and accusing each other of lying, but as we had seen on Wednesday there was no silver bullet to really get markets excited about. It’s worth noting that late last night the House Republicans passed a bill to dismantle parts of the Dodd-Frank Act following a 233-to-186 majority. The Bill passes to the Senate now however it’s not expected to have much chance of passing in its current form.

Staying with markets, as noted above the standout mover in European bond markets yesterday was BTPs. 10y yields fell 12.8bps to 2.154% and the most since March 2016. This followed lawmakers in the  ruling Democratic Party saying that the push to reform the country’s electoral law was “dead” which in turn lowered the probability of a snap election as early as this autumn. This followed the far right anti-establishment 5SM rejecting the proposal in a parliament debate yesterday. The FT suggested that the PD and 5SM could still go back to the drawing board in the coming days however so it might not be the last we hear of it. Led by Banks, the FTSE MIB also rallied to the tune of +1.46% yesterday which was in the context of the Stoxx 600 (-0.01%) closing more or less flat.

Back to Asia this morning where inflation reports have also been released in China. Headline CPI for May has nudged up three-tenths to +1.5% yoy, matching market expectations, however PPI slipped a little more than expected to +5.5% yoy (vs. +5.6% expected) from +6.4% in April. That makes it three straight monthly declines in the annual PPI reading although as a reminder that does follow 14 straight months of acceleration.

With regards to the remaining data yesterday, in the US the sole release was the latest weekly initial jobless claims print which came in at 245k and which has left the four-week moving average at a still low 242k. In Europe the main focus was on the final Q1 GDP revision for the Euro area which was revised up onetenth to +0.6% qoq after expectations were for no change. That also saw the annual rate notched up two-tenths to +1.9% yoy and the highest since Q4 2015. Away from that Germany reported a better than expected +0.8% mom uplift in industrial production in April (vs. +0.5% expected). That has lifted annual growth to +2.9% yoy from +2.2%.

Looking at the day ahead, while the fallout from the UK election will no doubt be front and centre, there is also a little bit of data to get through. This morning in Europe we get more hard data points with more industrial production prints due in France and the UK along with trade data out of Germany and also the UK. In the US we are due to receive the wholesale trade report. The EU/NATO Conference is also due today. It’s worth also noting that this Sunday France begins the two-step process to elect a new National Assembly with polls due to close on Sunday evening. The second round is on June 18th


i)Late THURSDAY night/FRIDAY morning: Shanghai closed UP 8.06 POINTS OR 0.26%   / /Hang Sang CLOSED DOWN 32.77 POINTS OR 0.13% The Nikkei closed UP 104.00 POINTS OR 0.52%/Australia’s all ordinaires  CLOSED UP 0.01%/Chinese yuan (ONSHORE) closed DOWN at 6.7971/Oil UP to 45.70 dollars per barrel for WTI and 47.94 for Brent. Stocks in Europe OPENED MIXED       ..Offshore yuan trades  6.7913 yuan to the dollar vs 6.7971 for onshore yuan. NOW  THE OFFSHORE IS MUCH WEAKER TO THE ONSHORE YUAN/ ONSHORE YUAN A LITTLE WEAKER (TO THE DOLLAR)  AND THE OFFSHORE YUAN IS MUCH WEAKER TO THE DOLLAR AND THIS IS COUPLED WITH THE MUCH STRONGER DOLLAR. CHINA NOT HAPPY WITH THE NEWS THAT ITS DEBT HAS BEEN DOWNGRADED  



A little background on those 4 anti ship missiles fired by North Korea.  It was a test  for precise accuracy and it is alarming to the west

(courtesy Mac Slavo/SHTFPlan)



WW3 Approaches, North Korea Launches 4 Anti-Ship Missiles





North Korea fired four anti-ship missiles into the sea east of the Korean Peninsula Thursday. The South Korean military said this new test was intended to demonstrate North Korea’s advancements in “precise targeting capability.”

As tensions continue to rise between the United States and the rogue nation of North Korea, the missile tests conducted also continue. This is now Kim Jong-Un’s fourth missile test in one month, as the volatile North Korean dictator continues to balk at the United Nations sanctions against his country. In fact, this is the nation’s first missile test since the UN implemented more, harsher, sanctions on the fascist nation.

South Korea’s joint chiefs said the projectiles, launched near the eastern port city of Wonsan, were believed to be surface-to-ship cruise missiles. “We assess that North Korea intended to show off its various missile capabilities, display its precise targeting capability, in the form of armed protests against ships in regard to US Navy carrier strike groups and joint naval drills,” Roh Jae-cheon, a spokesman for South Korea’s Joint Chiefs of Staffs told reporters.

The missiles went about 200 kilometers (124 miles), South Korea’s military said in a statement, adding the US military was undertaking a more detailed analysis. “Our military has strengthened surveillance and alertness readiness in cases of additional provocation by [the] North Korean military and is maintaining all readiness posture while we are tracking and monitoring [the] related situation,” the statement read.

Analysts say each launch, regardless of its success, improves missile technology for the dictatorship. The tests also ultimately provide information that will bring North Korea closer to its goal of building a missile that could reach the US. The launch comes one day after South Korea’s government suspended the deployment of a controversial US missile defense system which had strained relations with China and angered North Korea.

North Korean state media made no mention of the reported launches Thursday, but earlier warned Japan not to “gamble on its destiny.” The statement said, “If Japan is concerned about its security, it should not act (as) a poodle of the US but withdraw its hostile policy toward the DPRK and remove the US military bases for aggression (sic) from its territory.” Japan has been conducting evacuation drills in response to the North Korean provocation of war, and now they are mulling over the addition of missile shelters.

As North Korea continues to push the limits of it’s neighboring nations and the United States, it certainly seems like WW3 is becoming inevitable.




Whenever you see the Chinese 5 year/10 yr invert , then recession is flashing red!! Actually everything is inverting!

(courtesy zerohedge)

“Historic” Chinese Yield Curve Inversion Flashes Recession

A month ago, China 5s10s curve inverted for the first time ever, flashing warning signs of an imminent recession(but technical, liquidity factors were offered as excuses for this shift in the belly of the curve). The curve then double-inverted (with 3s10s inverting) seemingly confirming fundamental fears. And now, China’s yield curve is inverted from 1Y to 10Y for the second time in history.

China’s $1.7 trillion government-bond market is turning curiouser and curiouser

The yield on China’s one-year government bond climbs 6 basis points to 3.66%, rising above the 10-year yield of 3.65%, ChinaBond data show.

This is only the second time that the yield curve has inverted in data going back to 2006, with the first coming during a record cash crunch in June 2013.

As The Wall Street Journal recently wrote, such a “yield-curve inversion” defies normal market logic that bonds requiring a longer commitment should compensate investors with a higher return. It usually reflects investor pessimism about a country’s long-term growth and inflation prospects.

Perplexed traders and analysts offered up many excuses…

“Many of us are scratching our heads for an explanation because this kind of curve inversion is absolutely not normal,” said Wang Ming, a partner at Shanghai Yaozhi Asset Management Co., a bond fund that manages 2 billion yuan ($289.66 million) in assets.


“The inversion is a form of mispricing in the bond market,” said Liu Dongliang, senior analyst at China Merchants Bank . “The fact that no one is taking the bargain despite the higher yield on the five-year bond just shows how depressed investors’ mood is.”


“It’s really difficult to predict when the selloff or such anomalies will end because China’s bond market is reacting to the regulatory crackdown only and is no longer reflecting economic fundamentals,” said China Merchants Bank’s Mr. Liu.

But of course, the reality is – without massive and continued credit creation, there are very large questions about just how ‘dynamic’ Chinese growth could be and while technical flows are certainly part of the reasoning for short-end yields rising, the question is, why wouldn’t the rest of the world pile in to ‘reach for yield’… unless the fundamentals really did have them worried?

The nature of the inversion (higher yields, higher funding costs, and leverage pressure) is starting to reflexively impact the real economy (and hence the chances of dramatically lower growth/recession), as The FT reportsChinese corporate bond financing hit a record low in May, as a market rout discouraged new issuance while a wave of previously issued notes came due.

The combination of tight liquidity and a regulatory crackdown on leveraged investment in bonds has hammered China’s debt market in recent months.

Net corporate bond financing — new issuances less maturities — totalled negative Rmb217bn ($31bn) in May, well below the previous record low of negative Rmb89bn in February, according to data from Wind Information.


A “regulatory windstorm” led by China’s ambitious new banking regulator, Guo Shuqing, has targeted banks’ use of borrowed money to invest in bonds. The People’s Bank of China has also drained liquidity from the money market, making it more expensive for banks to borrow from each other to fund bond purchases.


“Banks’ demand for bonds has drastically reduced. The shock has been pretty large,” said Xu Hanfei, chief fixed-income analyst at China Merchants Securities in Shanghai. “Pressure has spread from the liabilities side to the asset side,” he said, referring to the impact of higher funding costs on demand for bonds.


“In the context of the increasing financing difficulty for bonds and non-standard (shadow bank) products, issuers of low quality are more severely impacted, and the corresponding credit risks tend to increase,” Haitong chief economist at Jiang Chao wrote this week.

Investors are also nervous about rising credit risk.

According to a survey of investors by Haitong Securities, only 5 per cent of bond investors are “optimistic” about low-rated corporate bonds. Companies cancelled or postponed 400 planned bond sales worth Rmb390bnbn in the year to May, up from Rmb286bn in cancellations a year earlier, according to Wind data.

But apart from that, we are sure everything is fine in the world’s biggest/second-biggest economy.




Theresa May wins  318 seats and falls short of a majority.  She will hook up with the Irish rightwing Democratic Unionist Party to allow her to govern:

(courtesy zerohedge)

Theresa May Says She Will Form A Government With Support Of DUP Party

In a last ditch Hail Mary effort to avoid resignation and new snap elections, Theresa May arrived at Buckingham Palace earlier to meet with the Queen where she will attempt to cling to power by linking her Conservative party with Northern Ireland’s rightwing Democratic Unionist Party (DUP) following the disastrous election that left her short of a governing majority.

As noted earlier, May has reached an understanding with Northern Ireland’s Democratic Unionist Party to form a coalition U.K. Government. With 649 of 650 seats declared, the Conservatives had won 318 seats and Labour 261. 326 seats are needed for majority. The DUP, which took 10 seats, was considering an arrangement which would involve it supporting a Conservative minority government on key votes in parliament but not forming a formal coalition, Sky said.

“If … the Conservative Party has won the most seats and probably the most votes then it will be incumbent on us to ensure that we have that period of stability and that is exactly what we will do,” a grim-faced May said after winning her own parliamentary seat of Maidenhead, near London.

The prime minister is headed back to Downing 10 after meeting with the Queen shortly after midday to seek permission from the Queen to form a new government despite the Tories winning just 318 seats in Thursday’s general election, eight short of the 326 needed to secure a majority on their own. The support of the 10 members of parliament elected for the DUP, the more hardline of the two traditional pro-British parties in Northern Ireland, would put Mrs May just over the threshold to form a government.

According to the FT, the DUP has not agreed formally to join a coalition with the Tories, though such arrangements could be agreed later. Regardless, the deal means Mrs May will govern over a union of highly disparate interests. The Tories’ surprising expansion in Scotland means her new parliamentary party will include several MPs with strong pro-EU credentials, while the DUP is a fierce supporter of departure from the EU — even though Northern Ireland voted to remain.

In addition, she will face fierce resistance from opposition parties at Westminster. Leaders of the three largest, including Labour’s second-place finisher Jeremy Corbyn, all called for her to resign.


Nicola Sturgeon, the Scottish first minister and head of the Scottish National party, said Mrs May had “lost all authority and credibility” while Liberal Democrat leader Tim Farron said she “should be ashamed” and should resign “if she has an ounce of self respect”.

While the DUP is not a perfect match for the Tories ideologically — they are further left on public spending but more hardline on social issues such as gay marriage and abortion — the party is opposed Mr Corbyn, who expressed support for Irish nationalism during the 1980s.

“The two parties have worked well together for two years; there’s no reason to suppose they won’t continue to do so in the future,” said one DUP official. “But the point made time after time to Labour MPs remains: for as long as you allow yourselves to be led by an IRA cheerleader, you exclude yourselves from entering Number 10.”

Upon return to Downing 10, Theresa May said that she will “now form a government” as she seeks to govern with the support of the Northern Irish DUP party. She also adds that Brexit talks will start in 10 days as scheduled.

Earlier in the day, European Union leaders expressed fears that May’s shock loss of her majority would delay the Brexit talks, due to begin on June 19, and so raise the risk of negotiations failing.

As Reuters reported, May’s Labour rival Jeremy Corbyn, once written off by his opponents as a no-hoper, said May should step down and he wanted to form a minority government.

“We need a government that can act,” EU Budget Commissioner Guenther Oettinger told German broadcaster Deutschlandfunk. “With a weak negotiating partner, there’s a danger that the (Brexit) negotiations will turn out badly for both sides.”

The EU’s chief negotiator said the bloc’s stance on Brexit and the timetable for the talks were clear, but the divorce negotiations should only start when Britain is ready. “Let’s put our minds together on striking a deal,” Michel Barnier said.

But there was little sympathy from some other Europeans. “Yet another own goal, after Cameron now May, will make already complex negotiations even more complicated,” tweeted Guy Verhofstadt, the former Belgian premier who is the European Parliament’s point man for the Brexit process.



An important lesson for us all.  A must read…

(courtesy Simon Black/SovereignMan.com)


This Is How A “Bail-Out” Becomes A “Bail-In”

Authored by Simon Black via SovereignMan.com,

Here’s the perfect example of how insane our financial system has become.

It was announced yesterday that, after a 24-hour white-knuckled ride, Spanish banking giant Banco Popular had been sold to Banco Santander for the price of just 1 euro.

Note- that’s 1 euro in TOTAL. Not 1 euro per share.

Banco Popular had once been one of Spain’s largest banks.

But just as certain banks tend to do from time to time, Popular sacrificed responsibility and good conduct for quick profits.

They spent years gambling their depositors’ savings away on idiotic, dangerous, pitiful loans. And those bad loans eventually came back to bite them.

The modern business of banking is all about pooling customer deposits together and making various loans and investments with those funds.

Safe, responsible banks make sensible investments.

They maintain extremely high loan standards. And they keep a SUBSTANTIAL rainy day fund set aside in case those loans and investments go bad.

Banco Popular did none of those things.

Back in 2006 during the height of the real estate bubble, for example, Popular maintained a liquidity ratio of less than 2% according to its annual report that year.

This means that over 98% of its customers’ savings had been gambled away on bad loans and bad speculations.

Eventually those risky loans started failing, and the bank started losing money.

Last year alone Popular lost 3.5 billion euros, which is about as much as they earned in all of the bubble years combined.

Fearing for the banks ability to continue servicing its customers, European regulators stepped in on Tuesday and forced a fire sale.

Banco Santander “won” that auction, again, paying a symbolic price of just 1 euro.

This means that Banco Santander will now inherit all the toxic loans (and consequent losses) that Popular had on its books.

The insanity here is that Santander had almost no time to conduct its due diligence, i.e. research the business to understand what they were buying.

Banco Popular had a balance sheet worth over $150 billion with hundreds of thousands of different loans.

It would take months to even begin scratching the surface of such a massive balance sheet.

By comparison, the last time I bought a business I paid $6 million and spent more than a year conducting due diligence.

Santander bought a $150 billion business and spent less than 24 hours trying to understand what they were buying.

This is nuts. And ENORMOUSLY risky for Santander.

But perhaps even more insane is that this deal is now being hailed by European governments and financial media as a wonderful solution to the looming problem of bank insolvency.

It doesn’t take a rocket scientist to understand that this problem wasn’t really solved.

It was just transferred from one bank to another. The assets are still toxic. They just happen to be owned by Santander now.

Most importantly, Banco Popular is FAR from alone.

Here in Italy, in fact, a number of smaller banks are teetering on insolvency.

And regulators have been scrambling trying to find potential suitors to copy this shotgun wedding ‘solution’.

But so far, no success.

Not a single bank in Italy has sufficient capital to absorb the toxic debts of another.

Plus the government itself is totally bankrupt.

So basically an insolvent government and insolvent large banks are trying to figure out how to bail out insolvent smaller banks.

It’s total madness.

And this is the important lesson: eventually they run out of options.

There’s no one left to bail out a bad bank… no taxpayers, no white knight, no bondholders, no shareholders. Nobody.

Except for depositors.

This is when a “bail out” becomes a “bail in”, and the depositors get stuck with the bill.

Bottom line: This matters. It’s your money at stake.

Don’t simply assume that your bank is in good condition. Examine their financial statements and find out for sure.

Don’t keep 100% of your life’s savings at a single institution. Make sure you diversify. If a bail-in ever occurs, it will be the largest depositors who get hit first.

And definitely consider diversifying geographically. Avoid keeping everything in the same country, especially if that country is bankrupt– the bail-in risk is much higher.

The world is a big place and there’s a ton of opportunity out there, including plenty of responsible, conservative places to bank.

And it’s hard to imagine you’ll be worse off because a portion of your savings is in a safe, well-capitalized bank.




Tillerson asks for the blockade against Qatar to stop as it is hindering the USA campaign against ISIS
(courtesy zero hedge)

Tillerson Tells Arab States To Lift Qatar Blockade: “It’s Hindering The Campaign Against ISIS”

Secretary of State Rex Tillerson called on the Saudi Arabia-led coalition, which includes UAE, Bahrain and Egypt and others, to lift its blockade of Qatar, saying that the cutoff is hindering the fight against the (Qatar-funded) Islamic State. Tillerson also said the blockade had led to food shortages and forced families to uproot themselves and pull their children from school.

“We believe there are unintended consequences, especially during this holy month of Ramadan but they can be addressed immediately,” Tillerson said.

The secretary of state said the Emir of Qatar has made progress in countering terrorism but needs to do more.  He added that after speaking to Gulf nations, he believes the countries involved in the dispute – all U.S. allies – are stronger together, and “the elements of a solution are available.” Even so, he said, Qatar must do more to combat extremism.

The Qatar crisis – the result of Saudi Arabia and its Arab allies severing diplomatic ties as well as land, sea and air travel with Qatar – has thrust the U.S. into a delicate position, because of its alliances with all sides, and because Qatar hosts the nerve center for U.S. air operations in the Middle East, including the fight against Islamic State. Making this more awkward is the widespread knowledge that both Qatar and Saudi Arabia are the biggest sponsors of terrorism in the region.

Separately Qatar’s foreign minister, Sheikh Mohammed bin Abdulrahman Al Thani, said that sanctions imposed upon his country violate international law, calling the moves by Saudi Arabia and other Arab nations an “unjust siege.”

speaking in the German town of Wolfenbuettel on Friday alongside German Foreign Minister Sigmar Gabriel, Qatari Foreign Minister Sheikh Mohammed bin Abdulrahman Al Thani also said that his nation’s hope was for diplomacy and dialogue.

He asked: “What crime did Qatar commit to deserve such a punishment that violates international law?”

Well, funding and supporting terrorism for once.

Gabriel said it was important to prevent any “further escalation” and that Germany was willing to help with any negotiations, noting that other diplomatic efforts were already being made by the U.S., Kuwait and others, and that he was “optimistic” they would be able to organize talks.


Mexican Industrial production simply crashes in April

(courtesy zero hedge)


Mexican Industrial Production Crashes In April

Delayed blowback from Trump? Mexico’s Industrial Production crashed 4.4% in April – the biggest drop since Oct 2009 – with manufacturing dropping 1.7% after surging 8.5% in March.

This is the 3rd MoM drop in a row (and biggest MoM drop since Nov ’15)…

However, Manufacturing was not the worst of it as Mining plunged 9.6% YoY, Utilities declined 3.0%, and Construction tumbling 6.5%.

Whether it is the recent surge in the peso or fears oif trade wars, this is a somewhat unprecedented and sudden downshift.



rig counts rise for the 21 st consecutive week

(courtesy zero hedge)

New US Shale Play Emerges As Rig Count Rises For 21st Week In A Row

Crude production from the Lower 48 dropped marginally last week, despite rising rig counts…


And in the last week oil rig counts rose once again (21st week in a row) up 8 to 741 – highest since April 2015 – notably given the lagged response to prices, we might expect the rig count rises to slow here.

But, while the Permian has dominated the conversation in recent months, OilPrice.com’s Irinia Slav explains the next big US shale play…

Media coverage of the U.S. shale oil and gas industry makes it sound like the Permian is the only place where things are happening. Everybody is buying acreage in the Permian, selling acreage in other shale plays, and production costs are falling the fastest in that same Permian.

True as this may be, this shale play is by no means the only one where production is growing. In fact, oil and gas output across the shale patch has been growing, as the Energy Information Administration’s latest drilling productivity report shows. And that’s not all because there is a new actor on stage: Powder River Basin in Wyoming.

Now, in its May drilling productivity report the EIA confirmed what media have been saying: the Permian is the hottest spot in the shale patch, with a 71,000-bpd increase in output in April. This hottest spot was followed by the Eagle Ford, which some see as a declining play but if we are to believe EIA data, it is far from a decline: drillers there added 36,000 bpd to total output in April.

Bakken, which the EIA last year said will become the largest source of tight oil and gas in the U.S., added 6,000 bpd to daily production, with Niobrara added 7,000 bpd. Even the Marcellus and Utica plays, which are more famous for their gas, are yielding more crude, with both adding 1,000 bpd to overall output in April.

All in all, despite much skepticism and open doubts in the actual performance of U.S. shale, the fact is that shale drillers are indeed boosting production. There is a school of thought that says the shale bubble will burst at some point, when producers stop being able to service the debts they are taking out to increase production but let’s bear in mind that they are not just investing in more production. Shale drillers are also investing in efficiency improvements that lower their production costs.

Now for the new player in the field, which is in fact not new at all. Bloomberg’s Alex Nussbaum calls Wyoming’s (and Montana’s) Powder River Basin “a home to cattle ranches and coal mines.” Yet until the 2014 price crash, the PRB was one of the shale oil basins that were growing at the fastest rate. Then prices tanked and drillers started getting out.

Now drillers are returning to the PBR. Crude oil production in the basin jumped to 1,000 bpd of oil equivalent over the last 12 months from less than 800 barrels and a major drilling expansion is on the way.

EOG, Chesapeake, and Devon Energy are planning to spend a combined US$600 million in that part of Wyoming, and pipeline operators are eager to expand in that direction. The reason: land prices are much lower than those in the Permian, for the moment. It’s all about early birds catching worms, and the earlier a bird is the better because prices in Powder River are already rising. A year ago, Nussbaum says, drilling permits went for less than US$1,000 per acre. Now, an acre costs US$17,000.

It may be that the Powder River Basin will repeat the success of the Permian, not least because its geology is similar, which of course means low production prices. Just this week, a local midstream operator, Evolution Midstream, purchased a gas gathering system from peer Lucid Energy Group, saying the asset will make the foundation for regional expansion now that interest in the Powder River Basin is growing so fast.




Your early morning currency/gold and silver pricing/Asian and European bourse movements/ and interest rate settings FRIDAY morning 7:00 am



GBP/USA 1.2776 UP .0054 (Brexit  March 29/ 2017/ARTICLE 50 SIGNED



Early THIS FRIDAY morning in Europe, the Euro FELL by 9 basis points, trading now ABOVE the important 1.08 level  FALLING to 1.1179; Europe is still reacting to Gr Britain HARD BREXIT,deflation, announcements of massive stimulation (QE), a proxy middle east war, and the ramifications of a default at the Austrian Hypo bank, an imminent default of Greece, Glencore, Nysmark and the Ukraine, along with rising peripheral bond yield further stimulation as the EU is moving more into NIRP, and now the Italian referendum defeat AND NOW THE ECB TAPERING OF ITS PURCHASES/ THE USA’S NON tightening by FAILING TO RAISE THEIR INTEREST RATE AND NOW THE HUGE PROBLEMS FACING TOO BIG TO FAIL DEUTSCHE BANK + THE ELECTION OF TRUMP IN THE USA+ TRUMP HEALTH CARE BILL DEFEAT AND MONTE DEI PASCHI NATIONALIZATION / Last night the Shanghai composite CLOSED  UP 8.06 POINTS OR 0.26%     / Hang Sang  CLOSED DOWN 32.72 POINTS OR 0.13% /AUSTRALIA  CLOSED UP 0.01% / EUROPEAN BOURSES OPENED MIXED

We are seeing that the 3 major global carry trades are being unwound. The BIGGY is the first one;

1. the total dollar global short is 9 trillion USA and as such we are now witnessing a sea of red blood on the streets as derivatives blow up with the massive rise in the rise in the dollar against all paper currencies and especially with the fall of the yuan carry trade. The emerging market which house close to 50% of the 9 trillion dollar short is feeling the massive pain as their debt is quite unmanageable.

2, the Nikkei average vs gold carry trade ( NIKKEI blowing up and the yen carry trade HAS BLOWN up/and now NIRP)

3. Short Swiss franc/long assets blew up ( Eastern European housing/Nikkei etc.

These massive carry trades are terribly offside as they are being unwound. It is causing global deflation ( we are at debt saturation already) as the world reacts to lack of demand and a scarcity of debt collateral. Bourses around the globe are reacting in kind to these events as well as the potential for a GREXIT>

The NIKKEI: this FRIDAY morning CLOSED UP 104.00 POINTS OR 0.52%

Trading from Europe and Asia:
1. Europe stocks  OPENED MIXED

2/ CHINESE BOURSES / : Hang Sang CLOSED DOWN 32.77 POINTS OR 0.13%  / SHANGHAI CLOSED UP 8.06 POINTS OR 0.26%   /Australia BOURSE CLOSED UP 0.01% /Nikkei (Japan)CLOSED UP 104.00 POINTS OR 0.52%    / INDIA’S SENSEX IN THE GREEN

Gold very early morning trading: 1273.65


Early FRIDAY morning USA 10 year bond yield: 2.204% !!! UP 2 IN POINTS from THURSDAY night in basis points and it is trading JUST BELOW resistance at 2.27-2.32%.

 The 30 yr bond yield  2.861, UP 2  IN BASIS POINTS  from THURSDAY night.

USA dollar index early THURSDAY morning: 97.38 UP 47  CENT(S) from THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING



And now your closing FRIDAY NUMBERS

Portuguese 10 year bond yield: 3.017%  DOWN 1/2 in basis point(s) yield from THURSDAY 

JAPANESE BOND YIELD: +.056%  DOWN 2  in   basis point yield from THURSDAY/JAPAN losing control of its yield curve

SPANISH 10 YR BOND YIELD: 1.444%  DOWN 3 IN basis point yield from THURSDAY (this is totally nuts!!/

ITALIAN 10 YR BOND YIELD: 2.087 DOWN 11   POINTS  in basis point yield from THURSDAY 

the Italian 10 yr bond yield is trading 65 points HIGHER than Spain.





Closing currency crosses for FRIDAY night/USA DOLLAR INDEX/USA 10 YR BOND YIELD/1:00 PM 

Euro/USA 1.1197 UP .0009 (Euro UP 9 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 110.49 UP  0.623 (Yen DOWN 63 basis points/ 

Great Britain/USA 1.2727 UP 6 ( POUND UP 6 basis points) AND DOWN 200 POINTS FROM 6 PM LAST NIGHT

USA/Canada 1.3436 DOWN .0087 (Canadian dollar UP 87 basis points AS OIL ROSE TO $46.06


This afternoon, the Euro was UP by 9 basis points to trade at 1.1197


The POUND FELL BY 200  basis points, trading at 1.2727/ FROM 6 PM LAST NIGHT

The Canadian dollar ROSE by 87 basis points to 1.3436,  WITH WTI OIL RISING TO :  $46.09

The USA/Yuan closed at 6.798/
the 10 yr Japanese bond yield closed at +.056% DOWN 1 IN  BASIS POINTS / yield/ 

Your closing 10 yr USA bond yield UP 1/3 IN basis points from THURSDAY at 2.209% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic  USA 30 yr bond yield: 2.866  UP 1  in basis points on the day /

Your closing USA dollar index, 97.29 UP 38 CENT(S)  ON THE DAY/1.00 PM 

Your closing bourses for Europe and the Dow along with the USA dollar index closing and interest rates for FRIDAY: 1:00 PM EST

London:  CLOSED UP 77.35 POINTS OR 1.04%
German Dax :CLOSED UP 102.14 POINTS OR 0.80%
Paris Cac  CLOSED UP  35.47 POINTS OR 0.67% 
Spain IBEX CLOSED  UP 25.20 POINTS OR 0.23%

Italian MIB: CLOSED  UP 90.01 POINTS/OR 0.38%

The Dow closed UP 89.44 OR 0.42%

NASDAQ WAS closed DOWN 113.85 POINTS OR 1.80%  4.00 PM EST
WTI Oil price;  46.06 at 1:00 pm; 

Brent Oil: 48.34 1:00 EST




This ends the stock indices, oil price, currency crosses and interest rate closes for today

Closing Price for Oil, 5 pm/and 10 year USA interest rate:


BRENT: $48.21


USA 30 YR BOND YIELD: 2.856%


USA/JAPANESE YEN:110.33  UP 0.455

USA DOLLAR INDEX: 97.27  UP 35  cent(s) ( HUGE resistance at 101.80 broken TO THE DOWNSIDE)

The British pound at 5 pm: Great Britain Pound/USA: 1.2736 : down 200 POINTS FROM THURSDAY NIGHT  

Canadian dollar: 1.3464 down 2 BASIS pts 

German 10 yr bond yield at 5 pm: +0.264%


And now your more important USA stories which will influence the price of gold/silver


FANGtastrophe Strikes Stocks As Growth Gamble Gives Up After VIX Hits 24-Year Lows

Been a while since we have been able to use this one…

Something changed today – the incessant bid for growth disappeared and value outperformed dramatically…


Small Caps soared again today, before getting dragged down with everything else… (but NASDAQ plunged – worst day since Brexit) – They tried to BTFD


And Small Caps have still managed to rise for 3 straight weeks…The Dow managed to bounce back into the green towards the close on a big buy-biased MOC


Small Cap Financials exploded higher in the last few days – the biggest jump since the election


VIX hit a 24-year low before all hell broke loose spiking above 12, and its 50/100 DMA…


At 9.37 lows today, this was the lowest VIX print since 1993…


FANG stocks were slammed today…biggest down day since the election

AMZN lost $17B in mkt cap in about 5 seconds.

Not helped this note from Goldman…

AMZN had a fun afternoon…


NVDA faded when Citron’s Andrew Left called the crazy-AI/VR/Chip/All-Things-To-All-People company a “casino stock”


Tech tumbled as Energy and Financials surged…


Treasury yields rose for the 3rd day in a row – pushing higher on the week, erasing the gains from payrolls…but the tech plunge into the close sent yields back lower…


The Dollar Index ended the week unchanged despite chaotic swings in Cable, EUR, and AUD…


Cable retraced most of its post-My-Snap-Election gains aftet last night’s disappointment…


Bitcoin had another big week (+16.7%) – up 8 weeks in a row – mainly driven by early week gains..


WTI/RBOB bounced modestly today ended the week ugly…


Silver and Gold were down on the week…


There’s this… While we have heard every excuse for why this ratio is not relevant, we can’t help but wonder how this is anything but a caution sign…


And finally there’s this…



Trump accuses Comey of being a “leaker” and a liar and also he claims total and complete vindication

(courtesy zerohedge)


Trump Slams “Liar, Leaker” Comey, Claims “Total And Complete Vindication”

After an uncharacteristic two-day social media silence, in which some wondered if White House lawyers had finally taken control of Trump’s iPhone, President Trump broke a nearly two-day silence on Twitter Friday morning to slam James Comey as a “liar” and a “leaker” the day after the fired FBI director’s testimony before Congress.

In the tweet, which may be the first of many, Trump claimed “total and complete vindication” from the Senate Intel Committee hearing, in which Comey likewise accused him of “lies” and requesting the FBI end a criminal investigation.

Despite so many false statements and lies, total and complete vindication…and WOW, Comey is a leaker!

Despite a brief statement by his private lawyer following Comey’s three hour testimony, Trump had remained silent on Twitter throughout Thursday surprising many, when much of the U.S. was glued to the TV screen, following every word in Comey’s first public comments since the president fired him early last month.

Comey said he believed Trump terminated him over the FBI’s investigation into Russian meddling in the 2016 election, he also revealed that he had authorized a close friend to leak a memo to the NYT. “I didn’t do it myself for a variety of reasons, but I asked him to because I thought that might prompt the appointment of a special counsel,” Comey said. Comey also disclosed that Loretta Lynch had exerted pressure on him during the Hillary Clinton probe.

During the highly charged hearing with the Senate Intelligence Committee, a blunt-talking Comey said that he was “confused” and “concerned” when Trump said in May that he was firing him for undermining the morale of the agency he had led since 2013.

“The administration then chose to defame me, and more importantly, the FBI by saying the organization was in disarray, that it was poorly led, that the workforce had lost confidence in its leader,” Comey said.

We now look forward to Comey’s response, as Trump appears unwilling to let it go.


Trump is set to file a complaint against Comey for leaking the memos to the New York Times and CNN

(courtesy zerohedge)


Trump’s Lawyer Will File Leak Complaint Against Comey

President Trump’s outside counsel, Marc Kasowitz, will file a leak complaint regarding former FBI Director James Comey’s leaked memos with the Department of Justice, a source close to the outside legal team tells NBC News, NBC reports. Kasowitz is expected to file the complaint with the DOJ’s Inspector General and the Senate Judiciary Committee after Comey testified Thursday that he allowed a personal friend to leak unclassified memos of his conversations with the president to news outlets in hopes it would trigger the appointment of a special counsel.

“I asked a friend of mine to share the content of a memo with the reporter,” Comey said during yesterday’s Senate hearing. “I didn’t do it myself for a variety of reasons, but I asked him to because I thought that might prompt the appointment of a special counsel.”

As was revealed later in the day, Comey’s friend was Columbia Law Professor Dan Richman.

It was not clear if Comey was also the source of numerous other leaks originating at the FBI. Some republicans took issue with the fact that while the FBI had leaked much of the details of the FBI’s ongoing investigation into Russia meddling, nobody had “leaked” that there was no ongoing probe against Trump personally.

In a statement after Comey’s testimony Thursday afternoon, Kasowitz labeled Comey as “one of these leakers” who are “actively attempting to undermine the president” and strongly suggested that federal authorities investigate Comey’s leaks — even though the memo that Comey gave to a friend was not classified and was turned over after he was fired.

On Friday morning, after nearly two days of twitter-silence, Trump lashed out at Comey out as a “leaker.” He also said that he was “vindicated” while accusing Comey of “false statements and lies,” i.e., perjury.

Despite so many false statements and lies, total and complete vindication…and WOW, Comey is a leaker!


Lawyer Kasowitz produces the May 11 New York Times article which clearly shows that someone leaked the memo prior to Trump’s tweet on the 12 of May


(courtesy zero hedge)

Trump Lawyer Doubles Down On Comey Perjury Accusation

Yesterday, the Twittersphere lit up when Julie Davis of the New York Times sent out a tweet suggesting that Trump’s personal attorney, Marc Kasowitz, had potentially made a serious blunder in mixing up his timeline of when Comey first leaked details of his meetings with Trump to the Times.  Davis, and most of the media, assumed that Kasowitz was referring to an article published on May 16th by the New York Times entitled “Comey Memo Says Trump Asked Him to End Flynn Investigation.”

Kasowitz is mistaken re NYT stories on Comey memos. We never quoted memos prior to Trump’s 5/12 tweet re tapes; 1st story doing so was 5/16


Of course, given that Trump’s tweet about the Comey tapes was sent 4 days prior it couldn’t have possibly been triggered the the NYT’s May 16th story….which led Ms. Davis of the Times to publish her ‘gotcha’ tweet.

James Comey better hope that there are no “tapes” of our conversations before he starts leaking to the press!


Unfortunately for her, Kasowitz has just released a clarifying statement which points out that he was never referring to the May 16th article in his statement yesterday, but rather an article published on May 11, entitled “In a Private Dinner, Trump Demanded Loyalty. Comey Demurred,” which seems to discuss, in detail, the same facts presented in Comey’s now infamous memos.  Here is the full statement from Kasowitz:

Statement of Marc Kasowitz, Attorney to President Donald J. Trump:


Numerous press stories have misreported that our statement yesterday incorrectly claimed that the New York Times was reporting details from Mr Comey’s memos the day before President Trump’s May 12, 2017 Tweet because, according to these reports, the first New York Times story to mention the memos specifically was May 16, 2017, which was after the Tweet.


Our statement was accurate and was not referring to the May 16, 2017 story.


Rather, Mr. Comey’s written statement, which he testified he prepared from his written memo, describes the details of the January dinner in virtually verbatim language as the New York Times May 11, 2017 story describing the same dinner.


That story was the day before President Trump’s Tweet.


It is obvious that whomever was the source for the May 11, 2017 New York Times story got that information from the memos or from someone reading or who had read the memos.


This makes clear, as our statement said, that Mr Comey incorrectly testified that he never leaked the contents of the memo or details of the dinner before President Trump’s May ’12. 2017 Tweet.

Trump lawyer Mark Kasowitz issues new statement, saying statement yesterday “was accurate.”


In a press conference Trump hints that he has the Comey tapes and he then tells the press that they are going to be very disappointed..

(courtesy zero hedge)

Trump Hints He Has Comey Tapes, Tells Press: “You’re Going To Be Very Disappointed, Don’t Worry”

Trump just dropped an awful lot of bombs in a very short period of time during a brief press conference with the Romanian President held in the White House Rose Garden.

First, on the issue of the infamous ‘Comey tapes,’ Trump hinted that they do, in fact, exist and he will “tell you about it over a short period of time.”

Reporter: “And you seem to be hinting that there are recordings of those conversations.”


Trump:  “I’m not hinting anything.  I’ll tell you about it over a very short period of time….Oh, you’re going to be very disappointed when you hear the answer. Don’t worry.”


On whether he would be willing to refute Comey’s testimony under oath, Trump said he would “100 percent” be willing to tell Special Counsel Mueller that he did not ask for Comey’s loyalty or ask for him to drop the Flynn investigation.

Reporter:  “Would you be willing to speak under oath to give your version of events?”


Trump:  “100%.  I hardly know the man, I’m not going to say “I want you to pledge allegiance.”  Who would do that?  I mean think of it.  I hardly know the man.  It doesn’t make sense.”


And on why Trump felt vindicated by Comey’s testimony:

“No collusion, no obstruction, he’s a leaker…”

House Intel Committee Tells Trump To Hand Over Comey Tapes “If They Exist”

Tyler Durden's picture

Moments after an exchange between Trump and a reporter during a White House press conference, in which the president refused to publicly state if the “Comey tapes” exist – while insinuating that they do  – and that Trump will reveal an answer shortly…

Reporter: “And you seem to be hinting that there are recordings of those conversations.”


Trump:  “I’m not hinting anything.  I’ll tell you about it over a very short period of time….Oh, you’re going to be very disappointed when you hear the answer. Don’t worry.”

… the House Intel Committee formally requested that the White House produce any tapes (or memos) of such a conversation – if they in fact  exist – and that Trump hand them over within two weeks.

Full statement from the House Intel Committee:

HPSCI Russia Investigation Notification on Letters to Comey and  White House


Washington, DC — Today, Reps. Mike Conaway and Adam Schiff announced that they sent two letters related to the House Permanent Select Committee on Intelligence Russia Investigation.


First, the Committee wrote to former Federal Bureau of Investigation Director James Comey to request any notes or memoranda in his possession memorializing  Comey to request any notes or memoranda in his possession memorializing discussions Comey had with President Trump.


Second, the Committee wrote a letter to White House Counsel Don McGahn, requesting that he inform the Committee whether any White House recordings or memoranda of Comey’s conversations with President Trump now exist or have in the past. To the extent they exist now, the Committee’s letter asks that copies of such materials be produced to the Committee by June 23.

And so the drama between Trump and Comey, which appeared to be on its way out, just got a fresh lease on life, with Friday, June 23 now set to be the next media frenzy day.


that did not take long!! The House Intelligence Committee demanded from Trump the tapes, if they exist..
(courtesy zerohedge)

House Intel Committee Tells Trump To Hand Over Comey Tapes “If They Exist”

Moments after an exchange between Trump and a reporter during a White House press conference, in which the president refused to publicly state if the “Comey tapes” exist – while insinuating that they do  – and that Trump will reveal an answer shortly…


Reporter: “And you seem to be hinting that there are recordings of those conversations.”


Trump:  “I’m not hinting anything.  I’ll tell you about it over a very short period of time….Oh, you’re going to be very disappointed when you hear the answer. Don’t worry.”

… the House Intel Committee formally requested that the White House produce any tapes (or memos) of such a conversation – if they in fact  exist – and that Trump hand them over within two weeks.

Full statement from the House Intel Committee:

HPSCI Russia Investigation Notification on Letters to Comey and  White House


Washington, DC — Today, Reps. Mike Conaway and Adam Schiff announced that they sent two letters related to the House Permanent Select Committee on Intelligence Russia Investigation.


First, the Committee wrote to former Federal Bureau of Investigation Director James Comey to request any notes or memoranda in his possession memorializing  Comey to request any notes or memoranda in his possession memorializing discussions Comey had with President Trump.


Second, the Committee wrote a letter to White House Counsel Don McGahn, requesting that he inform the Committee whether any White House recordings or memoranda of Comey’s conversations with President Trump now exist or have in the past. To the extent they exist now, the Committee’s letter asks that copies of such materials be produced to the Committee by June 23.

And so the drama between Trump and Comey, which appeared to be on its way out, just got a fresh lease on life, with Friday, June 23 now set to be the next media frenzy day.

Not a good sign for the economy:  credit card defaults surge the most since 2009:

(courtesy zero hedge)

Credit Card Defaults Surge Most Since Financial Crisis

In late April, after some disturbing monthly charge-off reports from major credit card vendors, we reported that according to the latest data from the S&P/Experian Bankcard Default Index, as of March 2017, the default rate on US credit cards had jumped to 3.31%, an increase of 13% from a year ago, and the highest default rate since June 2013.

The troubling deterioration prompted Moody’s to pen its own report yesterday titled “Spike in Charge-off Rates Indicates a Slide in Underwriting Standards” and as Moody’s analyst Warren Kornfelf writes, the steep increase in credit card charge-off rates in 1Q’17 and 4Q’16 was the largest since 2009, and indicates that “strong underwriting standards in place since the financial crisis have deteriorated, potentially rapidly.”

According to Moody’s, the “the size of the jump was surprising in light of the ongoing strength of the US employment market” unless of course the BLS is chronically, for political reasons or otherwise, misreporting the real dynamics in the labor market, or else the even more chronic failure of rale wages to rise means increasingly more Americans can not even make their minimum credit card payments.

First quarter charge-offs were highest for Capital One Financial, First National of Nebraska and Synchrony Financial (unrated), whose portfolios were already the weakest performing. Charge-offs at Capital One, First National of Nebraska and Synchrony rose to 5.31% (up 1.08% year-over-year), 4.21% (up 0.71%) and 5.40% (up 0.56%), respectively.

Capital One especially stood out, as its Q1 charge-offs almost reached their historical average while Discover and First National of Nebraska’s climbed to just over 80% of theirs; Citigroup rose to about 70%.

Another confirmation there is something very wrong with the consumer (or measures of US economic resilience), receivable growth at most issuers has exceeded U.S. nominal GDP, which totaled 3.7% in 2015 and 2.8% in 2016; when credit growth significantly exceeds nominal GDP growth it raises potential red flags such as aggressive underwriting to drive loan growth.

As noted last month, the results of the Fed’s latest survey of US bank senior loan officers showed a weakening in underwriting standards, coupled with plunging demand for credit cards and auto loans.

In Q1 2017, banks reversed the net tightening that they reported in Q4 2016, the first reversal since 2010. Moodys warsn that the steady and modest loosening of standards from 2011 to 2016 reflected an ongoing period of normalization4, but lending standards and the credit quality of new accounts can change quickly. Additionally, the Q1 2017 loosening has only been matched or surpassed in four quarters since 2012 (Q2 2015 and three 2014 quarters). The only positive news from the Q1 2017 survey was that for the first time in at least seven years, two percent of banks reported that they had tightened their credit card standards considerably

If lending standards continue to degrade, things could get messy in a hurry in the event that the economy takes a turn for the worse, according to Warren Kornfeld, a senior vice president at Moody’s.

“Although card standards were extremely tight in the years following the financial crisis, if underwriting then loosened materially, as the rise in charge-offs suggests, asset quality could continue to deteriorate rapidly going forward, especially in the event of a recession,” said Moodys.

* * *

Whatever the reason for the sudden surge in credit card charge-offs, it’s not the only red flag about the state of the US consumer. Recall CoreLogic’s warning from last month, namely that that stalwart of any viable business cycle, mortgage performance, has finally started to deteriorate…

While loan performance improved across various loan types throughout the first five years of the expansion, over the last year three of the four major types of loans began experiencing a deterioration in loan performance. The exception to the deterioration in credit performance was real estate, which continues to improve. However, a closer look reveals performance is deteriorating, albeit from pristine levels of performance.


While performance for the 2016 vintage is still very good from relative to the last two decades, it is beginning to worsen. Historically, when the mortgage credit cycle begins to deteriorate it continues to do so until the economy bottoms and the credit cycle begins to improve again.

… and it is becoming clear that the US consumer, responsible for 70% of US economic growth, has finally rolled over.



A huge drop in auto inventories will cause the revised 2nd quarter GDP to fall further

(courtesy zero hedge)

Q2 GDP To Suffer As Wholesale Inventories Plunge In April

Thanks to a big drop in automotive inventories (and sales) and farm products, April’s final wholesale inventories data tumbled 0.5% MoM. It has not seen a bigger drop since May 2013.

Auto Inventories dropped 1.4% MoM and Farm Products tumbled 2.4% MoM, but Petroleum products 5% drop was the biggest.

This is considerably worse than the preliminary print.

YoY Growth in both Wholesale Inventories and Sales are starting to roll over…


All in all, this signals Q2 GDP could be in for a big downside surprise.


The list of retails in danger of bankruptcy now climb to 22

(courtesy zero hedge)

“It’s A Perfect Storm”: List Of Retailers In Danger Of Bankruptcy Hits Record 22

The US retail sector continues to sink at an alarming rate, and according to the latest iteration of Moody‘s list of retailers who are in danger of filing for bankruptcy, there are now 22 distressed retailers whose troubled financials the rating agency believes could make them potential bankruptcy candidates in the near future, up substantially from just two months ago, and topping the 19 recorded at the peak of the Great Recession.

According to Moody’s analyst Charles O’Shea, legacy retailers such as Sears, Neiman Marcus and others on the rating agency’s retail distress list, face a “perfect storm” and warned that “you’re on the Andrea Gail right now, and the water’s starting to get very choppy.” The worst could be yet to come as the Moody’s analyst writes that “the ranks of distressed retailers is set to keep growing over the next 12 to 18 months amid a secular shift in the industry.”

Moody’s list consists of all retailers which have ratings of Caa or lower. That number has grown to 22, or approximately 15%, of the firm’s retail and apparel universe. “When you’re down there in C-a land, bankruptcy is a real possibility,” O’Shea said.

“The majority of retailers remain fundamentally healthy,” said O’Shea, “But as select groups of retailers continue to deteriorate — in particular department stores and specialty retailers — we believe the distressed ranks will keep growing, fueled in part by distinct vulnerabilities within the B2/B3 retail population.”

Focusing on those retailers with imminent default risk, Moody’s adds that of 42 B2/B3 rated issuers (as of April 30, 2017), seven face $1.1 billion of maturities for asset-based loans and revolving credit facilities over the next year- elevating the risk of default for already-stressed and distressed issuers should the strong refinancing pace driving recent high-yield issuance recede. Such a risk is underscored by Moody’s US speculative-grade default forecast, which predicts a decline in the overall US speculative-grade default rate to 3% by April 2018 from 4.5% today, even as spec-grade retail and apparel default forecasts trend significantly higher, at 6.7% and 6.8%, respectively.

Some of the highliights from the latest Moody’s report

  • Competitive challenges are intensifying and the credit erosion among more challenged retail sectors and individual retailers is crystallizing rapidly as more issuers file for bankruptcy and miss payments
  • The competitive challenges weighing on earnings performance for bigger retailers like Amazon.com, Walmart Stores, Best Buy and Target will have potentially devastating ripple effects for smaller, more challenged retailers over the next several quarters
  • Common characteristics of retail and apparel companies with lower credit ratings include stressed liquidity, weak quantitative credit profiles, challenged competitive positions, sponsor ownership and erratic management structure
  • Liquidity is typically the driving force in the assessment of credit risk, and a key determinant in any drop into Caa/Ca territory. “Risk becomes more acute when a company is facing a meaningful debt maturity.”

Some names that figured previously on Moody’s list have already filed for Chapter 11 protoection: among them discount footwear company Payless ShoeSource and Rue21, a teen fashion retailer, both filed for bankruptcy recently, while Gymboree, a specialty seller of children’s apparel, missed its June 1 interest payment and is expected to announce its bankruptcy filing shortly.

While landing on the distressed list of “super fallen angels” is not a death sentence, recently JC Penney managed to crawl out of it, the probability that a company will end up in bankruptcy rather than get its financial in orders is orders of magnitude greater.  “There are companies that come out of that,” said O’Shea, who noted that iconic retailer J.C. Penney “was down there, and is now out,” with an improved rating.

Doing the math here, with one company “out” and everyone else eventually filing, restructuring lawyers are finally going to be busy after a nearly decade-long hiatus.

Below is the full list of deeply distressed retailers:

  • Boardriders SA  – sporting subsidiary of Quiksilver
  • The Bon-Ton Stores – parent of department store chain
  • Fairway Group Holdings – food retailer
  • Tops Holding II – supermarket operator
  • 99 Cents Only Stores – discount retailer
  • TOMS Shoes – footwear company
  • David’s Bridal – wedding dresses and formalwear seller
  • Evergreen AcqCo 1 LP – parent of thrift chain Savers
  • Charming Charlie – women’s jewelry and accessories
  • Vince LLC – clothing retailer
  • Calceus Acquisition – owner of Cole Haan footwear firm
  • Charlotte Russe – women’s clothing
  • Neiman Marcus Group – luxury department store
  • Sears Holdings – owner of Sears and Kmart.
  • Indra Holdings – holding company owner of Totes Isotoner
  • Velocity Pooling Vehicle – does business as MAG, Motorsport Aftermarket Group
  • Chinos Intermediate Holdings – parent of J. Crew Group
  • Everest Holdings – manages Eddie Bauer brand
  • Nine West Holdings – clothing, shoes and accessories
  • Claire’s Stores – accessories and jewelry
  • True Religion Apparel – men’s and women’s clothing
  • Gymboree – children’s apparel (bankrupt: Harvey)




David Stockman on the Comey affair:


J.Edgar Comey’s Big Fat Nothingburger


Comey’s ballyhooed testimony contained nothing not already known. It had nothing remotely about obstruction of justice and nothing that matters at all. It’s just a replay of what Comey has been leaking all along.

Indeed, it’s the Nothingburger that proves Imperial Washington has become completely unhinged in its groundless RussiaGate hysteria. Washington is stumbling toward a lawless defenestration of a sitting president in the name of a hypocritical obeisance to a tortured version of “the law”.

It is a smoking gun in only one sense: It proves why Comey should have been fired on day one and why the Wall Street assumption that it can count on “Washington governance as usual” is so dangerously misguided.

The point is very simple. What we have is an entirely unstable, unsustainable hothouse economy and financial system. The giant bubble that was reflated after the 2008 crisis will soon violently implode and take the economy down with itunless it is again bailed-out by extraordinary Washington action.

But this time there is no one home on either end of Pennsylvania Avenue and no beltway bailout brigade at the ready. Today’s Senate show trial proves that the Imperial City is descending irretrievably into unprecedented dysfunction and political fratricide. The very fact of today’s farce is reason itself to run, not walk, from the feckless insouciance of the casino.

But to get this all in context, let’s start with the Senate Intelligence Committee hearing itself and its sad chairman, Senator Richard Burr of North Carolina. When it comes to treacherous betrayal, we’d just as soon go with Aaron (Burr).

The Senator knows full well that there is nothing to the Russian meddling story because if there was any kind of documented proof it would have leaked long ago. But he is a deck-hand of the national security apparatus and is willingly conducting today’s installment of the Imperial City’s anti-Russian witch hunt.

The substance of RussiaGate is simply the evidence-free assessments, judgments, surmises, and inferences of Deep State operatives dead set against Donald Trump from the very beginning.

That brings us to J. Edgar Comey. From the very beginning with his backhanded acquittal of Hillary last July, he has conducted himself as FBI Dictator, not director.

As the Wall Street Journal editorial page noted about Comey’s repeated whinny invocations of the FBI’s “traditionally independent status in the executive branch,”

Independent? This is a false and dangerous view of law enforcement in the American system.

Mr. Comey is describing an FBI director who essentially answers to no one. But the police powers of the government are awesome and often abused, and the only way to prevent or correct abuses is to report to elected officials who are accountable to voters. A director must resist intervention to obstruct an investigation, but he and the agency must be politically accountable or risk becoming the FBI of J. Edgar Hoover.

This whole “independence” is a smokescreen for relentless self-aggrandizement. That was evident in Comey’s statement about his first encounter with the President-elect on January 6th at Trump Tower with respect to the Christopher Steele “dossier”.

There was absolutely no reason of state for that presentation except to conduct a devious exercise in political intimidation. It was not even remotely a valid or necessary heads-up about a national security matter to the incoming occupant of the Oval Office.

He knew that the “salacious and unverified” document, as he described it, was not in any way, shape or form a national security document or product of an FBI investigation. To the contrary, it was a raw political attack.

So the January 6th briefing amounted to a deliberate hazing of the man who had been elected President. It had nothing to do with counter-intelligence or any other public purpose. Instead, it was a message from the permanent beltway government that “we rule, not you”.

As Alan Dershowitz so brilliantly and cogently schooled Anderson Cooper last night, the head of the FBI may have a 10-year term, but he serves at the pleasure of the president, and can be fired by the latter at will. The president also has the absolute and unequivocal power to tell the Attorney General and the head of the FBI — in the same room or separately — what to investigate and not to.

Furthermore, as Dershowitz made crystal clear, he could’ve told Comey that General Flynn had just been pardoned, and that the investigation should be dropped immediately. All of that would have been perfectly legal and constitutional.

The proposition that the Attorney General and FBI director operate in some insulated and antiseptic sphere above the president’s authority as head of the executive branch has been an entirely self-serving invention of the Deep State in the years since Watergate.

But that’s mere custom and practice, not law. It’s the outcome of a rolling putsch under which the permanent government, and the Washington-based apparatchiks and K-Street racketeers who feed off it, have gradually usurped control of American democracy.

In that respect, the three most powerful and destructive institutions within the beltway are the Federal Reserve, the $75 billion Intelligence Community and the Pentagon’s permanent military and civilian bureaucracy. All of them, like Comey, drape themselves in the cover of public spirited “independence” in order to exercise power unimpeded by the masses and their elected representatives.

The Congressional intelligence committee and the likes of Senators Burr and Warner are simply their subservient handmaids. In that role they have enabled the Comey’s and Brennan’s of the world to not only rule the roost, but to feign deep offense and invoke self-created “protocol” if and when they are challenged by elected officeholders.

The fact that this has all been invented during the last few decades is evident on every page of America’s recent and distant history book.

J. Edgar Hoover, for example, had amassed the same “independence” that Comey and his fawning MSM commentariat now claim. But Hoover was a menace to liberty and his arbitrary campaigns against citizens like Martin Luther King were a blight on the institutions of American democracy.

Is the garbage in the Steele dossier any different than Hoover’s tawdry collection of blackmail?

Likewise, was JFK brought under a cloud of suspicion for undermining the sacred independence of the Justice Department when he made his brother Attorney General?

What about when Nixon appointed his law partner to the job? Or when Ronald Reagan appointed as Attorney General a nice man, William French Smith, who was the husband of Nancy’s shopping companion?

As the Wall Street Journal also correctly observed, the “remarkable presumptuousness of the Comey mindset” and the false claim of high-minded independence behind it was evident during the campaign.

When it served his craving for the limelight, Comey broke the purportedly sacred DOJ “protocol.” He absolved Hillary Clinton’s mishandling of classified material without the involvement of Justice prosecutors or even telling then Attorney General Loretta Lynch.

Mr. Comey’s disregard for the chain of legal command is why Mr. Trump was right to fire him, whatever his reasons.

The January 6th presentation of the Steele “dossier” to Trump was an outright act of Hoover-style blackmail by the FBI director. It was a ringing statement that the phony “Russian meddling” narrative would be used against the White House whenever it suited the purposes of Comey and the Deep State he represented.

And that gets us to the heart of Comey’s big fat Nothingburger. As repeatedly insisted, General Mike Flynn was a fairly dangerous hawk, nut-job and Islamophobe who should never have been made director of the national security council. But in trying to open a back channel to the Kremlin through Ambassador Kislyak at the end of December, he did absolutely nothing wrong.

The move was small potatoes compared to Kissinger’s use of a KBG agent as a back channel during the December 1968 transition. It can’t hold a candle to the blatant Logan-act violation of Ronald Reagan’s team when they promised the Iranians a more attractive deal if they released the hostages on inauguration day (which they did), rather than before the election (which was Jimmy Carter’s planned “October Surprise”).

When Flynn was fired on February 13, Trump praised him offered no plausible reason for his dismissal because there wasn’t one. The Donald and his team had simply panicked in the face of the RussiaGate hysteria generated by the Deep State and propagated by mainstream media.

The bottom line was simple. The Donald had a guilty conscience for firing someone who had supported him during the campaign when the entire neocon establishment was abusing him.

Accordingly, the Donald made the plaintive request to the FBI director, who serves at his pleasure, to go easy on the blameless, short-lived director of the national security council.

The President then returned to the topic of Mike Flynn, saying, “He is a good guy and has been through a lot.” He repeated that Flynn hadn’t done anything wrong on his calls with the Russians, but had misled the Vice President.

He then said, “I hope you can see your way clear to letting this go, to letting Flynn go. He is a good guy. I hope you can let this go.” I replied only that “he is a good guy.” . . . I had understood the President to be requesting that we drop any investigation of Flynn in connection with false statements about his conversations with the Russian ambassador in December.

This is obstruction of justice?

No, it’s an Imperial City that has become unhinged.

And if you are not yet convinced, just consider the piece of evidence from two months ago when the now-French leader, Macron’s campaign was allegedly hacked by the Russians. His populist opponent, Marine Le Pen, had also said it was time to have a rapprochement with Putin.

Right on schedule, here was the election-eve story from the NYT under the ominous title: “Russian Hackers Who Targeted Clinton Appear to Attack France’s Macron“:

The campaign of the French presidential candidate Emmanuel Macron has been targeted by what appear to be the same Russian operatives responsible for hacks of Democratic campaign officials before last year’s American presidential election, a cybersecurity firm warns in a new report.

The report has heightened concerns that Russia may turn its playbook on France in an effort to harm Mr. Macron’s candidacy and bolster that of Mr. Macron’s rival, the National Front leader Marine Le Pen, in the final weeks of the French presidential campaign.

Actually, the whole story was a  crock. Here’s the truth of the matter from the head of France’s own cybersecurity agency:

The head of the French government’s cyber security agency, which investigated leaks from President Emmanuel Macron’s election campaign, says they found no trace of a notorious Russian hacking group behind the attack.

In an interview in his office Thursday with The Associated Press, Guillaume Poupard said the Macron campaign hack “was so generic and simple that it could have been practically anyone.”

He said they found no trace that the Russian hacking group known as APT28, blamed for other attacks including on the U.S. presidential campaign, was responsible.

As I’ve said before, buckle up. There is one bumpy ride ahead.

Ed. Note: For more from David Stockman, Reagan’s former budget director, get your copy of his FREE book TRUMPED!


David Stockman
for The Daily Reckoning



Again Alan Dershowitz states that there is no obstruction case and was glad when Comey stated that yes, the President can say who will be prosecuted and who will not be prosecuted.

(courtesy the Fly)

Alan Dershowitz Says Comey Was a ‘Coward’ For Leaking to Press; Says Obstruction Case Non-Existent Against the President

The_Real_Fly's picture

Content originally published at iBankCoin.com

Get in here shills. It’s time for your daily lesson on the sacred documents of the U.S. Constitution. Following up on his emphatic belief that the President can, essentially, do whatever the hell he wants with the FBI head — the famed Harvard Law professor called the former director a ‘coward’ for leaking his notes to the press, saying “I thought it shows a lot of cowardice. The head of the FBI (audible laughter), the guy is supposed to be a strong and powerful guy and he’s afraid of a couple seagulls (referring to Comey’s depiction of the press outside his home to seagulls).”

He added, “He should have had the courage to get on television and release the memos and talk about it or not talk about it. But to have some friend become his surrogate was absurd.”

Dershowitz then reiterated his thoughts about the non-existent obstruction case against the President.

“We should just stop talking about obstruction of justice, there’s no plausible case there.”

You know things are bad when the head of the FBI is called a coward by Alan Dershowitz — for fucks sake.

(courtesy Greg Hunter/USAWatchdog)

Comey the Leaker, Trump the Winner, Debt and Stock Market at All-Time High

By Greg Hunter On June 9, 2017 In Weekly News Wrap-Ups

Fired FBI Director James Comey made a stunning revelation this week in Congressional Hearings about the so-called Russian collusion investigation. Comey outed himself as a leaker of privileged information when he released a personal memo to the New York Times that implied Trump tried to interfere with the investigation into alleged Russian ties to the Trump campaign. Comey admitted to leaking the memo in order to force a Special Prosecutor to be appointed. Did Comey break the law? Donald Trump’s lawyer, Marc Kasowitz, was featured in a headline that said, “President Trump’s Lawyer: ‘Leaker’ Comey ‘Retaliatory’ in ‘Unauthorized Disclosures’ to Press of ‘Privileged Communications with the President.’ ” Also, as part of a very bad week for Comey, he is facing a new lawsuit that claims “FBI Illegally Spied on Government & Trump.”

Meanwhile, Comey claims he was fired because of the Russia investigation, but Comey repeatedly said that Trump was not the target of the investigation. Comey also repeatedly said that Trump did not obstruct the investigation. You can’t have it both ways. Comey can’t testify that there was no obstruction, and then leak information to get a Special Prosecutor appointed to look into obstruction. Now, even the mainstream “Destroy Trump” media is backing off. Chris Matthews says the so-called Russian/Trump collusion story “came apart” with the James Comey testimony. Comey should hire a criminal defense lawyer.

We have a record stock market once again at the same time the world has record debt. Most of the debt is simply unpayable. Maybe this is the reason why multi-billion dollar money manager Paul Singer is “very concerned.” Singer said on Bloomberg this week, “What we have today is a global financial system that’s just about as leveraged, and in many cases more leveraged, than before 2008.” You might remember that 2008 was the last time the financial markets had a major meltdown that required the Fed and every central bank in the world to come to the rescue with trillions of dollars in bailout money. What could go wrong?

Join Greg Hunter of USAWatchdog.com as he talks about these stories and more in the Weekly News Wrap-Up.

Video Link

http://usawatchdog.com/comey-the-leaker- trump-the-winner-debt-and-stock-market-at-all-time-high/



We will see you Monday night


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