Sept 13/Another raid with gold down $4.20 and silver down 4 cents on news of Trump’s supposed tax reform coming on Sept 25/USA threatens China with removal of the SWIFT payment system if they do not back the USA wishes with respect to North Korea/Turkey turns to Russia as it purchases missiles from them/ex UBS trader arrested in the USA for rigging gold and silver/

GOLD: $1324.40 DOWN   $4.20

Silver: $17.79  DOWN 4 CENT(S)

Closing access prices:

Gold $1323.20

silver: $17.78

SHANGHAI GOLD FIX:  FIRST FIX  10 15 PM EST  (2:15 SHANGHAI LOCAL TIME)

SECOND FIX:  2:15 AM EST  (6:15 SHANGHAI LOCAL TIME)

SHANGHAI FIRST GOLD FIX: $1336.44 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1332.55

PREMIUM FIRST FIX:  $3.89

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SECOND SHANGHAI GOLD FIX: $1334.59

NY GOLD PRICE AT THE EXACT SAME TIME: $1331.55

Premium of Shanghai 2nd fix/NY:$3.04

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

LONDON FIRST GOLD FIX:  5:30 am est  $1332.25

NY PRICING AT THE EXACT SAME TIME: $1332.20

LONDON SECOND GOLD FIX  10 AM: $1327.55

NY PRICING AT THE EXACT SAME TIME. 1328.65

For comex gold:

SEPTEMBER/

NOTICES FILINGS TODAY FOR SEPT CONTRACT MONTH: 3 NOTICE(S) FOR  300  OZ.

TOTAL NOTICES SO FAR: 54 FOR 5400 OZ  (0.1679 TONNES)

For silver:

SEPTEMBER

 264 NOTICES FILED TODAY FOR

1,320,000  OZ/

Total number of notices filed so far this month: 4,898 for 24,490,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

end

 

Let us have a look at the data for today

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In silver, the total open interest ROSE BY A RATHER LARGE 1031 contracts from  187,176 DOWN TO 188,207 DESPITE THE  DROP IN PRICE THAT SILVER UNDERTOOK IN YESTERDAY’S TRADING (DOWN 1 CENT(S). WE HAVE NOW HAD THREE DAYS OF TORMENT AND YET THE SILVER OPEN INTEREST HARDLY BUDGES.  THE LONGS ARE REMAINING STOIC AND REFUSE TO GIVE IN TO THE ANTICS OF THE BANKERS.

RESULT: A STEADY RISE IN OI COMEX  DESPITE THE 1 CENT PRICE LOSS. 

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.941 BILLION TO BE EXACT or 134% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MAY MONTH/ THEY FILED: 264 NOTICE(S) FOR 1,320,000  OZ OF SILVER

In gold, the open interest ROSE BY A MONSTROUS 6,487 CONTRACTS DESPITE THE  LOSS  in price of gold ($2.95 LOSS YESTERDAY). The new OI for the gold complex rests at 580,606. NO WONDER THAT WE ANOTHER FLASH CRASH AND ANOTHER DAY OF TORMENT FROM THE BANKERS. 

 

Result: A LARGE INCREASE IN OI DESPITE THE  FALL IN PRICE IN GOLD ($2.95). THE COMMERCIALS SUPPLIED THE NECESSARY SHORT PAPER.  NO DOUBT THAT ANOTHER FLASH CRASH WAS ORCHESTRATED TODAY DUE TO THE HUGE RISE IN OPEN INTEREST IN GOLD AND THE STEADY RISE IN OI IN SILVER

we had: 3 notice(s) filed upon for 300 oz of gold.

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

GLD:

Tonight , we had a huge change in gold inventory last night: a huge addition of 4.14 tonnes of gold.

Inventory rests tonight: 838.64 tonnes

SLV

Today: no change in inventory.

INVENTORY RESTS AT 327.088 MILLION OZ

end

.

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

1. Today, we had the open interest in silver ROSE BY A STEADY  1031 contracts from 187,176  UP TO 188,207(AND now A LITTLE CLOSER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE YESTERDAY’S 1 CENT LOSS IN TRADING. OUR LONGS ARE STRONG AND REFUSE TO BUDGE WITH THE ANTICS OF OUR BANKERS.

RESULT:  A  STEADY RISE IN OI  AT THE COMEX  DESPITE THE LARGE  FALL IN PRICE OF 1 CENTS. NO DOUBT THE RAID WAS CALLED UPON BY OUR BANKERS WHEN THEY SAW BOTH GOLD AND SILVER OI ROSE YESTERDAY.

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

 

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY:  Bloomberg

3. ASIAN AFFAIRS

i)Late TUESDAY night/WEDNESDAY morning: Shanghai closed UP 4.65 POINTS OR 0.14%   / /Hang Sang CLOSED DOWN 78.16 POINTS OR 0.28%/ The Nikkei closed UP 89.20 POINTS OR 0.45%/Australia’s all ordinaires CLOSED DOWN 0.04%/Chinese yuan (ONSHORE) closed UP at 6.5333/Oil DOWN to 48.60 dollars per barrel for WTI and 54.55 for Brent. Stocks in Europe OPENED GREEN EXCEPT LONDON. Offshore yuan trades  6.5352 yuan to the dollar vs 6.5333 for onshore yuan. NOW THE OFFSHORE MOVED A LITTLE WEAKER  TO THE ONSHORE YUAN/ ONSHORE YUAN MUCH STRONGER (TO THE DOLLAR)  AND THE OFFSHORE YUAN IS A LITTLE STRONGER TO THE DOLLAR AND THIS IS COUPLED WITH THE SLIGHTLY  WEAKER DOLLAR. CHINA IS VERY HAPPY TODAY 

 

 

3a)THAILAND/SOUTH KOREA/NORTH KOREA

i)Seems that Kim is using Bitcoin to help the nation facing UN sanctions

( zero hedge)

ii)late this afternoon:

with the world kind of relieved that North Korea would not launch any more missiles, imagery has shown considerable activity at  the launch site and maybe another nuclear test

( zerohedge)

b) REPORT ON JAPAN

c) REPORT ON CHINA

i)The USA threatens China with their removal from SWIFT if it violates North Korean sanctions.  This is a fast way for China to back its yuan with gold if this happens.

( zero hedge)

ii)Hedge funds are abandoning their short positions on China as they say it is just north worth fighting.  Only Kyle Bass remains

( zerohedge)

iii)Late this afternoon:  China will not be happy with Trump blocking Chinese acquisition of chipmaker Lattice Semiconductor

( zerohedge)

4. EUROPEAN AFFAIRS

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

This was largely expected except from the Western allies. Turkey pivots completely towards Russia and signs a missile deal.  Now what will Turkey do with its 3 million migrants holed up inside their country..will they release them onto Greece?..what about Incirlik, the huge air base inside Southern Turkey

( zerohedge)

6 .GLOBAL ISSUES

7. OIL ISSUES

Both West Texas oil and gasoline fall after a huge crude build up in inventory.  The huge production jump offsets the greatest gasoline inventory draw in history due to the hurricanes

( zerohedge)

8. EMERGING MARKET

VENEZUELA

An excellent commentary about the troubles facing Venezuela.  The author describes how the once powerful state oil company PDVSA will face inevitable default

( Christopher Dembik/Saxo Bank)

9.   PHYSICAL MARKETS

i)The market does not like the fact that Jamie Dimon considers Bitcoin a fraud.  It tumbled last night below $4000

(courtesy zero hedge)

ii)Craig Hemke talks about the suppression schemes by the bankers on gold and silver

( Craig Hemke/GATA)

iii)We wish all the luck in the world for these Chinese gold firms as they pursue mining in Indonesia

 

( Bloomberg/GATA)

iv)Hugo explains that if Mexico would not print on a silver coin its value, it will not be melted down when the peso is devalued.  He claims that the value should be announced on a daily basis and that will be an excellent savings vehicle for citizens

( Hugo Salinas Price/GATA)

v)If the USA cuts off China from the SWIFT payment system, you can bet the farm that they would initiate a fully backed yuan to gold

(Bloomberg/GATA)

vi)Gold drops and the dollar rises with news of a tax plan:The USA tax plan is coming on the Sept 25.2017. This has no chance of aiding the amount of tax collections the USA  will incur.  They need to have a consumption tax.  The lowering of the corporate tax to 15% will not solve the necessary income the country needs. In other words, with the losses from the hurricanes and already burgeoning deficits, if a tax cut comes into play, where is the money going to come from to pay for the cuts???…  See David Stockman’s latest paper

 

( zero hedge)
vii)Early afternoon: gold rises/dollar drops on “red hot” Mueller
focusing on social media and the collusion of the Russians with respect to the USA election.please give me a break..this is beyond ridiculous!( zero hedge)

viii)One of many traders that will be arrested and charged with rigging gold/silver etc.

(courtesy zerohedge)

10. USA Stories

i)Twenty Five percent of all homes in the Florida Keys have been destroyed.  Almost all homes have some damage. In the State of Florida 9 million people are without power. We have 750,000 people without power in the Carolinas and Georgia.

( zerohedge)

ii)the Fed is not going to like this: PPI fails expectations: the Fed needs for inflation especially in wages to rise for their models to work

( zerohedge)

iii)Senator Heidi Heitkamp, democrat senator states that somebody must go to jail for the severe breach at Equifax

( zerohedge)

iv)Two more American diplomats affected by the mysterious sonic attacks in Cuba

( zerohedge)

Let us head over to the comex:

The total gold comex open interest ROSE BY A MONSTROUS 6,487 CONTRACTS UP to an OI level of 580,606 DESPITE THE   LOSS IN THE PRICE OF GOLD  ($2.95 LOSS IN YESTERDAY’S trading).  THE GAIN IN OPEN INTEREST FOR THE COMEX GOLD COMPLEX NO DOUBT CAUSED OUR BANKERS TO ORCHESTRATE ANOTHER FLASH CRASH AND CONTINUE WITH THEIR 3RD CONSECUTIVE DAY OF   TORMENT

Result: a  HUGE  SIZED open interest INCREASE with a DROP  in the price of gold. CONTINUAL BANKER TORMENT TODAY WITH ANOTHER FLASH CRASH. 

The new non active September contract month saw it’s OI FALL BY 4 contracts DOWN to 816.   We had 0 notices filed UPON YESTERDAY so we LOST 4 contracts or an additional 400 oz will NOT stand AND 4 EFP’s WERE ISSUED which entitles them to a fiat bonus plus a deliverable contract on a different exchange and most likely that would be London.  These are private deals so we do not get to see the makeup of these deals only the number of EFP’s issued.

The next active contract month is Oct and here we saw a LOSS of 1585 contracts DOWN to 39,909.

The November contract saw A GAIN OF 20 contracts UP to 379.

The very big active December contract month saw it’s OI GAIN OF 6,285 contracts UP to 457,657.

We had 3 notice(s) filed upon today for  300 oz

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And now for the wild silver comex results.  Total silver OI ROSE BY A STEADY  1,031 CONTRACTS FROM 187,176 UP TO 188,207 DESPITE YESTERDAY’S  1 CENT LOSS IN PRICE.   DESPITE THE CONSTANT TORMENT FROM THE BANKERS, OUR LONGS REMAIN RESOLUTE DETERMINED TO TAKE ON OUR BANKERS AS HARDLY ANY SILVER LEAVES FELL FROM THE SILVER TREE.  DEMAND FOR PHYSICAL SILVER REMAINS EXTREMELY HIGH AS AGAIN THE AMOUNT STANDING FOR DELIVERY INCREASED AGAIN AND THIS TIME BY A WHOPPING 905,000 OZ.  WE HAVE BEEN WITNESSING THIS PHENOMENA FOR THE PAST 5 MONTHS.  (SEE BELOW).
RESULT:  A STEADY INCREASE IN OI AT THE COMEX  DESPITE A 1 CENT LOSS IN PRICE. DEMAND FOR PHYSICAL SILVER RISES AGAIN AS THE AMOUNT STANDING INCREASES FOR THE SEPT CONTRACT MONTH BY A WHOPPING 905,000 OZ.  THE BANKERS THIS TIME WERE RETICENT TO SUPPLY THE NECESSARY SHORT PAPER AS THEY COULD NOT CAUSE MORE SILVER LEAVES (OI) TO FALL!!. JUDGING FROM THE TRADING IN GOLD/SILVER TODAY, THE BANKERS SEEM TRAPPED AS THEY TRY TO GET OUT OF THEIR HUGE PAPER SHORTS.

We are now in the active contract month of September (and the last active month until December). Today we witness Sept. OI GAIN OF 23 contacts UP to 1077. We had 158 notices filed yesterday, so we again gained 181 contracts or an additional 905,000 oz will stand for delivery. This phenomenon has been happening in silver for the past 5 months whereby the amount standing increases on each and every delivery day.  This queue jumping highlights the huge demand for silver that we have been witnessing around the globe. The next non active contract month for silver after September is October and here the OI LOST 29 contacts DOWN TO 1076. November saw a GAIN of 3  contract(s) and thus ADVANCING to 62. After November, the NEXT big active contract month is December and here the OI LOST 947 contracts DOWN to 159,583 contracts.

We had 264 notice(s) filed for  1,320,000 oz for the SEPT. 2017 contract

VOLUMES: for the gold comex

ESTIMATED VOLUME TODAY: 298,801 CONTRACTS WHICH IS VERY GOOD

YESTERDAY’S confirmed volume was 303,169 which is VERY GOOD

volumes on gold are STILL HIGHER THAN NORMAL!

INITIAL standings for SEPTEMBER

 Sept.13/2017.

Gold Ounces
Withdrawals from Dealers Inventory in oz   nil
Withdrawals from Customer Inventory in oz  
NIL 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
 
3 notice(s)
300 OZ
No of oz to be served (notices)
816 contracts
(81600 oz)
Total monthly oz gold served (contracts) so far this month
54 notices
5400 oz
0.1679 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   9,193.0  oz
Today we HAD  0 kilobar transaction(s)/ 
total dealer deposits: nil oz
We had nil dealer withdrawals:
total dealer withdrawals:  0 oz
we had 0 customer deposit(s):
total customer deposits; NIL  oz
We had 0 customer withdrawal(s)
total customer withdrawals; NIL oz
 we had 0 adjustment(s)
For SEPT:

Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 3  contract(s)  of which 0 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account.

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To calculate the initial total number of gold ounces standing for the SEPTEMBER. contract month, we take the total number of notices filed so far for the month (54) x 100 oz or 5400 oz, to which we add the difference between the open interest for the front month of SEPT. (816 contracts) minus the number of notices served upon today (3) x 100 oz per contract equals 87,000  oz, the number of ounces standing in this active month of SEPT.
 
Thus the INITIAL standings for gold for the SEPTEMBER contract month:
No of notices served so far (54) x 100 oz  or ounces + {(816)OI for the front month  minus the number of  notices served upon today (3) x 100 oz which equals 87,000 oz standing in this  active delivery month of SEPTEMBER  (2.706 tonnes)
We LOST 4 contracts or 400 oz will NOT stand and 4 EFP’s were issued for September which gives the long holder a fiat bonus plus a deliverable product on another exchange and that most likely will be London.
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Total dealer inventory 741,512.035 or 23.064 tonnes  (dealer gold continues to disappear)
Total gold inventory (dealer and customer) = 8,696,919.037 or 270.510 tonnes 
 
Over a year ago the comex had 303 tonnes of total gold. Today the total inventory rests at 270.44 tonnes for a  loss of 33  tonnes over that period.  Since August 8/2016 we have lost 34 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.
 
IN THE LAST 13 MONTHS  84 NET TONNES HAS LEFT THE COMEX.
end
And now for silver
AND NOW THE AUGUST DELIVERY MONTH
September initial standings
 Sept 13  2017
Silver Ounces
Withdrawals from Dealers Inventory  nil
Withdrawals from Customer Inventory
25,318.530 oz
CNT
Deposits to the Dealer Inventory
nil  oz
Deposits to the Customer Inventory 
 94,304.196 oz
Brinks
No of oz served today (contracts)
264 CONTRACT(S)
(1,320,000 OZ)
No of oz to be served (notices)
813 contracts
(4,065,000 oz)
Total monthly oz silver served (contracts) 4898 contracts (24,490,000 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 4,303,738.7 oz
today, we had  0 deposit(s) into the dealer account:
total dealer deposit: nil   oz
we had 0 dealer withdrawals:
total dealer withdrawals: nil oz
we had 1 customer withdrawal(s):
i) Out of CNT:  25,318.530 oz
TOTAL CUSTOMER WITHDRAWALS: 25,318.530  oz
We had 0 Customer deposit(s):
***deposits into JPMorgan have stopped  again
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: 25,318.530 oz
 
 we had 2 adjustment(s)
i) Out of Brinks:  319,407.830 oz was transferred from the customer into the dealer account of Brinks
ii) out of Delaware:  512702.824 oz was adjusted out of the customer and into the dealer account of Delaware
The total number of notices filed today for the SEPTEMBER. contract month is represented by 264 contract(s) for 1,320,000 oz. To calculate the number of silver ounces that will stand for delivery in SEPTEMBER., we take the total number of notices filed for the month so far at 4898 x 5,000 oz  = 24,490,000 oz to which we add the difference between the open interest for the front month of SEPT (1077) and the number of notices served upon today (264) x 5000 oz equals the number of ounces standing.
 

 

.
 
Thus the INITIAL standings for silver for the SEPTEMBER contract month:  4898 (notices served so far)x 5000 oz  + OI for front month of SEPTEMBER(1077 ) -number of notices served upon today (264)x 5000 oz  equals  28,555,000 oz  of silver standing for the SEPTEMBER contract month. This is excellent for this active delivery month. Silver is being constantly demanded at the silver comex and we witness again the amount of silver demanded daily increase right from the get go. (ON AUGUST 31 (FIRST DATE NOTICE) WE HAD 20.15 MILLION OZ STAND. THUS IN THE FIRST 13 DAYS OF SEPTEMBER, WE HAVE HAD A HUGE INCREASE OF  8.5 MILLION OZ STAND FOR DELIVERY AS DEALERS JUMP QUEUE TRYING TO FIND THE NECESSARY SILVER TO SUPPLY TO OUR LONGS.)
 
WE HAD AN INCREASE OF 181 CONTRACTS OR AN ADDITIONAL 905,000 OZ OF SILVER WILL STAND FOR DELIVERY IN THIS ACTIVE CONTRACT MONTH OF SEPTEMBER. THIS HAS BEEN THE 5th CONSECUTIVE MONTH THAT WE HAVE WITNESSED EITHER AN INCREASE (95% OF THE TIME) OR STANDING PAT (THE OTHER 5%).  WE HAVE NOT HAVE A DECREASE IN STANDING I.E. AS THEY DELIVERY MONTH PROCEEDS NOBODY WISHES AN EFP PRODUCT IN EXCHANGE FOR A DEPARTING LONG.SOMEBODY BIG WANTS SILVER IN A VERY BIG WAY.
Last yr on the first day notice for the Sept silver 2016 contract we had 17.070 million oz stand for delivery.
By month end:  16.075 million oz/
 
Volumes: for silver comex
ESTIMATED VOLUME TODAY: 87,563 CONTRACTS WHICH IS HUGE
YESTERDAY’s  confirmed volume was 68,650 contracts which is EXCELLENT
YESTERDAY’S CONFIRMED VOLUME OF 68,650 CONTRACTS WHICH EQUATES TO 343 MILLION OZ OF SILVER OR 49% OF ANNUAL GLOBAL PRODUCTION OF SILVER EX CHINA EX RUSSIA). IN OUR HEARINGS THE COMMISSIONERS STRESSED THAT THE OPEN INTEREST SHOULD BE AROUND 3% OF THE MARKET.
 
Total dealer silver:  43.707 million (close to record low inventory  
Total number of dealer and customer silver:   217.702 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
end

NPV for Sprott and Central Fund of Canada

1. Central Fund of Canada: traded at Negative 5.3 percent to NAV usa funds and Negative 5.2% to NAV for Cdn funds!!!! 
Percentage of fund in gold 62.3%
Percentage of fund in silver:37.7%
cash .+0.0%( Sept 12/2017) 
2. Sprott silver fund (PSLV): STOCK   NAV FALLS TO -0.29% (Sept 12/2017) 
3. Sprott gold fund (PHYS): premium to NAV RISES TO -0.48% to NAV  (Sept 12/2017 )
Note: Sprott silver trust back  into NEGATIVE territory at -0.29%/Sprott physical gold trust is back into NEGATIVE/ territory at -0.48%/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

http://www.cbc.ca/news/canada/calgary/sprott-takeover-bid-central-fund-c…

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.

end

And now the Gold inventory at the GLD

Sept 13/late last night a huge 4.14 tonnes of gold was added to the GLD inventory/inventory rests at 838.64 tonnes.

Sept 12/as of 5: 40 pm est, no changes in gold inventory at the GLD/Inventory rests at 834.50 tonnes

Sept 11/Today we had a rather large 2.37 tonnes of gold removed from the GLD/Inventory rests at 834.50 tonnes

Sept 8/we had a tiny withdrawal of .34 tonnes and probably that would be to pay for fees like insurance etc.

Inventory rests at 836.87 tonnes

Sept 7./no changes in gold inventory at the GLD/Inventory rests at 837.21 tonnes

SEPT 6/WE HAD ANOTHER DEPOSIT OF 5.91 TONNES INTO THE GLD/IN THE LAST TWO DAYS: 20.69 TONNES/INVENTORY RESTS AT 837.21 TONES

Sept 5/we had a huge deposit of 14.78 tonnes into the GLD/Inventory rests at 831.21 tonnes

Sept 1/ no change in gold inventory at the GLD/Inventory rests at 816.43 tonnes

AUGUST 31/no change in gold inventory at the GLD. Inventory rests at 816.43 tonnes

August 30/another deposit of 2.07 tonnes into the GLD inventory/inventory rests at 816.43 tonnes

August 29/a huge deposit of 9.16 tonnes of probable paper gold/inventory rests at 814.36 tonnes

AUGUST 28/a huge deposit f 5.91 tonnes of gold into GLD inventory/inventory rests at 805.20 tonnes

AUGUST 25/NO CHANGE IN GOLD INVENTORY/INVENTORY RESTS AT 799.29 TONNES

AUGUST 24/no change in gold inventory at the GLD/inventory rests at 799.29 tonnes

August 23/no change in gold inventory at the GLD/Inventory rests at 799.29 tonnes

August 22/no change in gold inventory at the GLD/Inventory rests at 799.29 tonnes/

AUGUST 21/this is good!! a huge deposit of gold into the GLD to the tune of 3.85 tonnes/Inventory rests at 799.29 tonnes

August 18/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 795.44 TONNES

August 17/late last night, a deposit of 4.43 tonnes of gold at the GLD/inventory rests at 795.44 tonnes/the bleeding of gold has stopped.

August 16/no change in gold inventory at the GLD. Inventory rests at 791.01 tonnes

August 15/no change in gold inventory at the GLD/inventory rests at 791.01 tonnes

August 14/this is good!!: a gain of 4.14 tonnes of gold into the GLD inventory/the removal of GLD gone to the east has now stopped probably because there is no physical to send/inventory rests at 791.01 tonnes

August 11/no change in gold inventory/Inventory rests at 786.87 tonnes

August 7/no changes in gold inventory at the GLD/Inventory rests at 787.14 tonnes

AUGUST 4/ANOTHER LOSS OF 4.48 TONNES OF GOLD FROM GLD INVENTORY/INVENTORY RESTS AT 787.14 TONNES.THIS IS A HUGE CRIME SCENE!!

August 3/no change in gold inventory at the GLD/Inventory rests at 791.88 tonnes

August 2/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 791.88 TONNES

Aug 1/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 791.88 TONNES

July 31/NO CHANGES AT THE GLD/INVENTORY RESTS AT 791.88 TONNES

July 28/ANOTHER MASSIVE WITHDRAWAL OF 3.54 TONNES OF GOLD WITH GOLD UP $9.15/INVENTORY RESTS AT 791.88 TONNES

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Sept 13 /2017/ Inventory rests tonight at 838.64 tonnes
*IN LAST 231 TRADING DAYS: 102.46 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 167 TRADING DAYS: A NET  54.97 TONNES HAVE NOW BEEN ADDED INTO  GLD INVENTORY.
*FROM FEB 1/2017: A NET  23.58 TONNES HAVE BEEN ADDED.

end

Now the SLV Inventory

Sept 13/no change in silver inventory at the SLV/Inventory rests at 327.088 million oz/

Sept 12.2017/no change in silver inventory at the SLV/Inventory rests at 327.088 million oz/

Sept 11.2017: no change in silver inventory at the SLV/Inventory rests at 327.088 million oz/

Sept 8/no change in silver inventory at the SLV/Inventory rests at 327.088 million oz/

Sept 7/STRANGE!! WITH DEMAND FOR SILVER HUGE WE HAD ANOTHER 945,000 OZ WITHDRAWN. NO DOUBT THAT THIS IS CRIMINAL ACTIVITY AS SILVER IS WITHDRAWN AND USED TO CONTAIN THE RISE IN PRICE/INVENTORY RESTS AT 327.088 MILLION OZ/

SEPT 6/STRANGE WITH A HUGE DEMAND FOR SILVER THROUGHOUT THE WORLD THESE DOORKNOBS WITHDRAW A HUGE 3.148 MILLION OZ OF SILVER FROM THE SLV/INVENTORY RESTS AT 328.033 MILLION OZ

Sept 5/2017: no change in silver inventory at the SLV/Inventory rests at 331.178 million oz/

Sept 1/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 331.178 MILLION OZ

AUGUST 31/STRANGE!! a huge withdrawal of 2.019 million oz with silver up today./INVENTORY RESTS AT 331.178 MILLION OZ

August 30/no change in silver inventory at the SLV/inventory rests at 333.178 million oz

August 29/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 333.178 MILLION OZ

AUGUST 28/no change in silver inventory at the SLV/Inventory rests at 333.178 million oz/

AUGUST 25/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 333.178 MILLION OZ

AUGUST 24/A HUGE WITHDRAWAL OF 1.229 MILLION OZ FROM THE SLV/INVENTORY RESTS AT 333.178 MILLION OZ

August 23/no change in silver inventory at the SLV/Inventory rests at 334.407 million oz

August 22/no change in silver inventory at the SLV/inventory rests at 334.407 million oz.

AUGUST 21/no change in silver inventory/inventory rests at 334.407 million oz/

August 18/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY REST AT 334.407 MILLION OZ

August 17/A WITHDRAWAL OF 1.418 MILLION OZ LEAVES THE VAULTS OF THE SLV (WITH SILVER UP 25 CENTS YESTERDAY?)/INVENTORY RESTS AT 334.407 MILLION OZ

August 16/no change in silver inventory at the SLV/Inventory rests at 335.825 million oz/

August 15/no change in silver inventory at the SLV/Inventory rests at 335.825 million oz.

August 14./no change in silver inventory/inventory rests at 335.825 million/

August 11/no change in silver inventory tonight.  However we lost 3,781 million oz from Tuesday through Thursday. Inventory rests at 335.825 million oz/

August 7/no change in silver inventory at the SLV/Inventory rests at 339.606 million oz

AUGUST 4/A WITHDRAWAL OF 945,000 OZ/INVENTORY RESTS AT 339.606 MILLION OZ

August 3/A WITHDRAWAL OF 1,181,000 OZ FROM THE SLV/INVENTOR RESTS AT 340.551 MILLION OZ/

August 2/NO CHANGES IN SILVER INVENTORY AT THE SLV

INVENTORY RESTS AT 341.732 MILLION OZ/

August 1/A HUGE WITHDRAWAL OF 945,000 OZ/INVENTORY RESTS AT 341.732 MILLION OZ/

July 31/no change in silver inventory at the SLV/inventory rests at 342.677 million oz

July 28/ A HUGE WITHDRAWAL OF 1.15 MILLION OZ OF SILVER LEAVES THE SLV DESPITE SILVER BEING UP 11 CENTS TODAY/INVENTORY RESTS AT  342.677 MILLION OZ

Sept 13.2017:

Inventory 327.088  million oz
end
  • 6 Month MM GOFO

    Indicative gold forward offer rate for a 6 month duration

    + 1.37%
  • 12 Month MM GOFO
    + 1.54%
  • 30 day trend

end

Major gold/silver trading/commentaries for WEDNESDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

 

Massive Equifax Hack Shows Cyber Risk to Deposits and Investments Today

By Jan Skoyles

  • 44% of US population affected by Equifax hack
  • Hackers took names, birthdays and addresses, Social Security and driver’s license numbers
  • Steve Mnuchin “concerned about the global financial system and keeping it safe,”
  • Hacks is a reminder of the vulnerabilities created in a connected world
  • Cyber security is a major threat to both banking and financial industry
  • Investors should hold physical gold as insurance against hacking and cyber attacks

Last week 143 million people woke up to the news that a data breach at Equifax has left them wide open to financial and identity fraud.

Readers will have no doubt read about the hacking of credit bureau Equifax. Not only were they slow to deal with the issue but three senior executives (including the CFO) sold almost $2 million worth of stock prior to alerting customers to the security breach.

This is the third time in sixteen months that Equifax has been hacked. It is the umpteenth time there has been a data breach at a company that holds financial and personal information of its customers. Each time millions of people’s data and livelihoods has been put at risk.

‘Have no doubt: This means you will be hacked. This means your SIM card will be spoofed. This means someone will try to get into your email and online accounts. This means someone will try to open a credit card in your name.’ John Biggs, Tech Crunch.

Equifax is yet another example of incompetence on the part of data-heavy company, with little recourse for customers affected.

Cyberattacks are continuously evolving into incidents that are relentless and unforgiving. In the last 25 years the sophistication of hackers’ tools has improved.

This recent attack puts the Yahoo breaches of 2014 and 2015 in a rather dim light in comparison to the harm caused by Equifax hackers.

2017 has almost proved to be a coming of age year for hackers. So far this year we have already had the biggest ransomware outbreak that saw data breaches at the NHS, FedEx, Telefonica and Deutsche Bahn.

It is now inevitable that something like this goes on and that we are no longer surprised by it. Why is it happening and what can we do about it?

Why is this happening?

Governments and banks want everything to be digital from online accounts through to digital money. This not only saves them money but also helps with their knowledge about us and means they can continue to print cash without us paying too much attention. They share our information with one another and use this for their own advantages.

As customers we don’t mind this so much because the majority of the time an interconnected world makes our lives easier. It helps us to travel, it helps us to apply for mortgages, it even helps us to book a hotel room with just one click.

The cost of this easy life is the growing threat of hacking. Our entire lives are available to be seen by those who (if they really want it) can get access to it.

We trust these governments and companies not only with our most personal of information but also that they will protect it.

But this is a trust that is not respected by so many organisations.

When it comes to Equifax, customers did not ask them to eat up and store all of this data about them, just for it then to be sold onto marketing companies. It is not the customers’ fault that this data was not kept secure.

Equifax is just one headline in the last month regarding hacks. TechCrunch warns us about a few more:

Hacker group Dragonfly has penetrated operational networks of energy companies that control power grids in the US and Europe, which could allow them to disrupt utilities to hundreds of millions of people

An indefensible vulnerability in all modern cars could let attackers affect sensors, airbags, and anti-lock brakes.

Hackers penetrated voting systems before the 2016 presidential elections, but local officials weren’t warned and the systems haven’t been properly investigated for malware or alterations since.

Hackers are fooling mobile carriers into letting them change the phone associated with a phone number, allowing attackers to empty people’s cryptocurrency wallets

German voting machines can be hacked to change the vote tallies

Hackers want this information for three reasons:

  1. To show you that they can have it if they want it. For some hackers it can be that the actual hacking is more important than what they can actually do with the data. This motive is becoming increasingly rare.
  2. To make money from you or the company. This can either be by using your information to steal from you or claim money on your behalf, or by issuing hefty ransoms in exchange for the data.
  3. Cyber warfare. This is unfortunately the case at the forefront of everyone’s minds when we see big hacks such as the Equifax breach. This has huge implications for not only your personal financial security but also for global safety and security.



Hacking weapons for cyberwar 

Avivah Litan, an analyst at Gartner, told NBC News that the data gathered in these data breaches was not necessarily just going to be used to steal money and identities. Instead, it might end up playing a key role in cyber warfare.

“Cyberwar is in large part conducted through data mining and cyber-intelligence… Enemy nation states build databases of Americans that they then use to get to their targets, for example a network operator at a power grid, or a defense contractor at a missile defense company.”

US Treasury Secretary Steve Mnuchin has also recognised how this latest hack is a sign that far worse things could be on the horizon. Speaking to the CNBC Institutional Investor Delivering Alpha Conference in New York Mnuchin said his main concern was “about the global financial system and keeping it safe.”

For those of a more military leaning cyber hacks are very serious indeed. In June the British American Security Information Council (BASIC) released a report entitled ‘Hacking UK Trident: A Growing Threat’. In the report BASIC explained that a successful cyber intrusion could “neutralise operations, lead to loss of life, defeat or perhaps even the catastrophic exchange of nuclear warheads (directly or indirectly).”

What can be done about it?

In the short-term we need to be aware that this latest attack may have some very significant lasting effects.

The hackers have access to victims’ credit files, social security numbers, credit card details and even driving license information. This is not something we can just change the data for. Unless the US government decides to issue new social security numbers and 143 million Americans decide to move house and change their birth dates then this data is permanently vulnerable to exploitation.

Access to this information could result in major financial theft through identity fraud and just plain access to information. The Federal trade Commission told customers last week to file their tax returns early “as soon as you have the information, before a scammer can.”

Companies need to seriously up their game when it come to security of client accounts. In the United States it is not uncommon to be able to access account just through the last four digits of your social security number. If this wasn’t easy to find out before, it certainly is now thanks to Equifax.

Each time a data breach of this nature takes place it seems that the most companies merely breathe a sigh of relief that it wasn’t their systems which were hacked. Those who were hacked issue an apology and resolve to strengthen their systems.

Instead companies should be striving to become tech companies where security is at the forefront of their strategies.

In the long-term consumers need to protect themselves notably against financial fraud but also the impact of cyber warfare on the wider world.

Protect yourself, don’t rely on others

We used to be told that changing our usernames and passwords on a regular basis was good enough to protect ourselves from security issues.

Now, we have no idea where to start when it comes to information stored online. On a daily basis we partake in a panorama of activities that keep us locked into the interconnected world and our data vulnerable.

Of course one of the biggest areas that we are happy to have automated and made as easy as possible is our money. This is both at the end of money creation and our own personal investments.

As hackers and cyber attackers become more sophisticated we need to be ahead of the game.

All manner of financial, government and infrastructure companies have been hacked. It is likely that many of these small scale attacks have been merely testing of defences.

Be aware that in the future a concerted attack on the global financial system would likely include attempts at disabling various exchanges (both stock and foreign exchange). Banks would also be a key target, ATMs and wire transfers could be disabled and bank balances, which are merely digital figures, could be erased.

We are all dependent on technology and the digital monetary system. A cyberattack would economically paralyse our system. The primary wealth would longer be primarily digital – cash, stocks and bonds – access to tangible wealth would be vital.

Whilst it would be imprudent to predict cyber warfare that results in the collapse of the financial system we do believe it would be prudent to take necessary precautions and diversify into physical gold and silver bullion.

Conclusion – buy gold bullion for insurance

As we explained following the possible US Navy cyber attacks:

By owning allocated and segregated physical gold with GoldCore you are protecting yourself against potential hackers in two ways

First: GoldCore works extremely hard to provide the highest level of security for their clients – both online and offline.

Second: Gold is a tangible asset. This means it cannot just disappear at the touch of a few buttons, courtesy of a few hackers. Should there be a global cyberattack on the financial system, the primary wealth would no longer be primarily digital (cash, stocks and bonds etc).

Gold will not only be important because of its tangible nature but also because of its role as a safe haven in times of geopolitical risks. A cyberattack whether on the U.S. Navy, a civilian ship, an election or across the financial sphere is an attack. It is a weapon being fired by one party on another.

These also pose risks to digital gold providers who do not allow clients to interact and trade on the phone and are solely reliant for pricing and liquidity from online portals and online trading platforms.

Those who have outright legal ownership of physical gold and silver coins and bars outside the banking system will weather the cyber storm better than those who do not.

The hope is that these risks will not materialise. Hope is never a strategy. We believe it is prudent to be aware of and take appropriate measures – sooner rather than later – to protect your wealth.

-END-

-END-

Gold drops and the dollar rises with news of a tax plan:

The USA tax plan is coming on the Sept 25.2017. This has no chance of aiding the amount of tax collections the USA  will incur.  They need to have a consumption tax.  The lowering of the corporate tax to 15% will not solve the necessary income the country needs. In other words, with the losses from the hurricanes and already burgeoning deficits, if a tax cut comes into play, where is the money going to come from to pay for the cuts???…  See David Stockman’s latest paper

 

(courtesy zero hedge)

Gold Drops, USD Pops As Mulvaney/Ryan Signals Tax Plan Coming September 25th

OMB Director Mick Mulvaney told Fox Business this morning that the target date for the release of details around a renewed tax plan is September 25th (presumably 2017) and that has triggered USD-buying and gold-selling.

  • REVENUE NEUTRALITY `NOT ON THE TOP OF OUR LIST’: MULVANEY
  • CAN’T BALANCE U.S. BUDGET LONG-TERM ON CURRENT GROWTH: MULVANEY
  • TRUMP’S FRUSTRATED WITH SLOW PACE OF WASHINGTON ON TAX:MULVANEY
  • TRUMP `ADAMANT’ ABOUT GETTING CORPORATE RATE TO 15%: MULVANEY

These remarks follow Trump’s meeting with Congressional leaders Tuesday evening on the subject. As Reuters reports:

Trump met with six senators including three Democrats who set clear conditions for future cooperation with him on taxes… Also attending were Vice President Mike Pence, White House economic adviser Gary Cohn and Mnuchin.”

As you know, House Speaker Paul Ryan has said that 15% is unrealistic. In his view, something closer to 22.5% is doable.  Paul Ryan has also confirmed that date:

  • *RYAN: OUTLINE OF TAX PLAN WILL BE RELEASED WEEK OF SEPT. 25
  • *RYAN SAYS CONFIDENT TRUMP TO PUSH FOR CONSERVATIVE TAX REFORM

Meanwhile, House Ways and Means Committee Chair Brady, a member of the “Big Six,” has reiterated the target date while adding that he instructed House Republicans that the goal is for the House and Senate to complete the budget process by mid October and then take up the tax bill.

Gold down, USD suring as the “Trump trade”, this time prompted by hopes of tax cuts, appears to be making a comeback.

please give me a break..this is beyond ridiculous!

(courtesy zero hedge)

Gold Pop, Dollar Drop On “Red Hot” Mueller Social Media Probe Headlines

Following a weak 30Y auction, headlines struck that special prosecutor Robert Mueller is said to have “red hot” focus on social media with Bloomberg reporting his team probing Russia-backed fake news on social media. The instant reaction was dollar weakness and gold strength.

This just continues the narrative started last week with Facebook admitting collusion with Russian operatives…

  • MUELLER PROBE IS SAID TO HAVE `RED-HOT’ FOCUS ON SOCIAL MEDIA
  • MUELLER TEAM SAID SEEKING MORE EVIDENCE FROM SOCIAL MEDIA COS.
  • MUELLER TEAM PROBING RUSSIA-BACKED FAKE NEWS ON SOCIAL MEDIA

Bloomberg adds:

“The ability of foreign nations to use social media to manipulate and influence elections and policy is increasingly seen as the soft underbelly of international espionage, another official said, because it doesn’t involve the theft of state secrets and the US doesn’t have a ready defense to prevent such attacks.

 

Agencies including the Office of the Director of National Intelligence and the Federal Bureau of Investigation are now examining what could be done to prevent similar interference and espionage in future elections, starting with the 2018 midterm congressional vote, the official said.

 

At the same time, Russia is ramping up its hacking operations, Director of National Intelligence Dan Coats said.

 

“Russia has clearly assumed an even more aggressive cyber posture by increasing cyber espionage operations and leaking data stolen from those operations,” Coats said Wednesday at the Billington Cybersecurity Summit in Washington.”

 

Mueller’s office declined to comment on the status of the investigation.

And the reaction is negative for the dollar and positive for gold…

As a reminder, we noted last night what a farce this current witch hunt has become… just in case it isn’t crystal clear why the above statement is so ridiculous, please allow us to demonstrate with one simple chart.  This is how the $50,000 worth of ‘Russian’ ad buys on Facebook compares to the $1.2 billion that Hillary spent on her campaign…please note, this is not a mistake…the $50k literally isn’t even big enough to show up on the chart. 

All of which means that one of the following three things is true:

i) Facebook delivers the greatest ROIC to advertisers in the history of mankind,

 

ii) Hillary is the worst allocator of capital ever

 

or iii) this whole narrative is just beyond dumb.

This is just becoming increaingly embarrassing for the establishment as evidenced by Mark Warner, the committee’s top Democrat and a former telecommunications company founder, comments… “This is the Wild, Wild West.”

One of many traders that will be arrested and charged with rigging gold/silver etc.
(courtesy zerohedge)

Former UBS Trader Arrested, Charged With Rigging Gold Prices

Three years after we first identified the former head of UBS’s gold desk in Zurich as someone directly implicated in the rigging of precious metals prices, Bloomberg reports that Andre Flotron, a Swiss resident, was arrested while visiting the U.S., according to people familiar with the matter.

Having been “on leave” since 2014, it appears Andre’s hope that he was gone but “keen to return in due time” are now up in smoke.

 

As Bloomberg reports, Flotron was charged with conspiracy, wire fraud, commodities fraud and spoofing, according to a prepared complaint, and is the second person publicly charged in the U.S. investigation into the fixing of gold, silver, platinum and palladium prices.

As a a reminder, in June, David Liew, a former Deutsche Bank AG trader, pleaded guilty to fraud in federal court in Chicago for his role in the spoofing of contracts for gold, silver, platinum and palladium, according to court papers. Along with spoofing, he also acknowledged front-running customers’ orders.

Flotron’s arrest extends the Justice Department’s examination of whether bank traders conspired to rig interest-rate benchmarks and manipulate currency exchanges.

The probes, which led to guilty pleas and billions of dollars in payouts by some of the world’s biggest banks, also led prosecutors to begin investigating whether metals traders were placing orders without the intent of executing them in an attempt to move prices in their favor, a tactic known as spoofing.

“Flotron and his co-conspirators placed one or more large orders for precious metals futures contracts on one side of the market which, at the time Flotron and his co-conspirators placed the orders, they intended to cancel before execution,” the complaint said.

Swiss regulators have also shown an interest in Flotron, telling him in a2014 letter of a possible enforcement action, two people told Bloomberg News at the time.

It’s unclear whether Switzerland’s Financial Market Supervisory Authority disciplined him.

So it seems another conspiracy theory becomes conspiracy fact.

Thank you Monsieur Flotron for teaching us how market manipulators “trade” gold –  Recall from 2013, when Flotron was ‘trading’, what “a humble block of 2000 gold futs (GC) taking out the bid stack, and slamming the price of gold, managed to halt the gold market: one of the largest “asset” markets in the world in terms of total notional, for 20 seconds” looks like:

 end
The market does not like the fact that Jamie Dimon considers Bitcoin a fraud.  It tumbled last night below $4000

(courtesy zero hedge)

Craig Hemke talks about the suppression schemes by the bankers on gold and silver

(courtesy Craig Hemke/GATA)

 

TF Metals Report: On guard against the banks

 Section: 

12:45p ET Tuesday, September 12, 2017

Dear Friend of GATA and Gold:

Bullion banks suppressing gold and silver futures prices have not lost control of the market, the TF Metals Report says today, but they increasingly are being challenged by speculators pursuing the key moving price averages that have been going up. So, the TF Metals Report concludes, it may take a while for the banks to knock prices back down, but they surely will. The analysis is headlined “On Guard Against the Banks” and it’s posted here:

https://www.tfmetalsreport.com/blog/8554/guard-against-banks

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.com

END

We wish all the luck in the world for these Chinese gold firms as they pursue mining in Indonesia

 

(courtesy Bloomberg/GATA)

 

China gold firms pursue $1.5 billion Indonesia mine

 Section: 

By Vinicy Chan, Brett Foley, and David Stringer
Bloomberg News
Tuesday, September 12, 2017

Shandong Gold Group, one of the biggest Chinese miners of the metal, is among firms considering bids for EMR Capital’s Indonesian gold and silver mine, people with knowledge of the matter said.

China Gold International Resources Corp. is also exploring a possible bid for the Martabe mine in North Sumatra province, according to the people, who asked not to be identified because the details are private. EMR Capital, a resources-focused private equity firm, is weighing options including a sale of the asset, which could fetch as much as $1.5 billion, the people said.

Gold producers are seeking acquisitions amid a rally in the price of the precious metal, which last week touched the highest price in more than a year as concerns over North Korea’s missile ambitions escalated. Shandong Gold’s listed arm agreed in April to pay $960 million for a stake in a Barrick Gold Corp. mine in Argentina, while a group including Fosun International Ltd. said in May it will purchase a stake in Russia’s Polyus PJSC for $887 million. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2017-09-12/china-gold-firms-are-…

END

 

Hugo explains that if Mexico would not print on a silver coin its value, it will not be melted down when the peso is devalued.  He claims that the value should be announced on a daily basis and that will be an excellent savings vehicle for citizens

 

(courtesy Hugo Salinas Price/GATA)

Hugo Salinas Price: A primer on the Mexican ‘Libertad’ silver ounce as a savings vehicle

 Section: 

8:27p ET Tuesday, September 12, 2017

Dear Friend of GATA and Gold:

In “A Primer on the Mexican ‘Libertad’ Silver Ounce as a Vehicle for Savings of the Common Folk,” Hugo Salinas Price of the Mexican Civic Association for Silver explains what happened to Mexican silver coins imprinted with a currency value that quickly was overtaken by depreciation of the peso. That is, the coins were liberated from their currency imprint by melting into bullion for sale in the metals market.

Thus, Salinas Price notes, Mexico can have its own silver currency to shield the savings of its people only by quoting the coin’s peso-exchange value on a daily basis and pledging never to reduce that value.

Minting the currency of the savings of the Mexican people might put some central bankers out of work in Mexico and around the world, but it would bring great strength and employment to real industry in the resource-rich country.

Salinas Price’s commentary is posted at the association’s internet site here:

http://plata.com.mx/Mplata/articulos/articlesFilt.asp?fiidarticulo=319

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org

END

 

If the USA cuts off China from the SWIFT payment system, you can bet the farm that they would initiate a fully backed yuan to gold

 

(Bloomberg/GATA)

Treasury secretary invites China to move from dollars to gold

 Section: 

Mnuchin Threatens More Sanctions on China Over North Korea

By Saleha Mohsin and Arit John
Bloomberg News
Tuesday, September 12, 2017

https://www.bloomberg.com/news/articles/2017-09-12/mnuchin-threatens-fin…

Treasury Secretary Steven Mnuchin warned today that the U.S. may impose additional sanctions on China — potentially cutting off access to the U.S. financial system — if it doesn’t follow through on a fresh round of United Nations restrictions against North Korea.

The UN Security Council added new sanctions against North Korea after leader Kim Jong Un’s regime conducted its sixth and most powerful nuclear test. Mnuchin echoed the U.S. envoy to the UN, Nikki Haley, in calling the sanctions “historic” even though they didn’t include U.S. demands for a full oil embargo and a freeze on Kim’s assets. The new measures include limiting North Korea’s imports of petroleum products and banning textile exports.

“If China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the U.S. and international dollar system — and that’s quite meaningful,” Mnuchin said during an event at CNBC’s Delivering Alpha conference in New York. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2017-09-12/mnuchin-threatens-fin…

END



Your early WEDNESDAY 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 LITTLE STRONGER AT 6.5333 (REVALUATION NORTHBOUND   /OFFSHORE YUAN MOVES SLIGHTLY WEAKER TO ONSHORE AT   6.5352/ Shanghai bourse CLOSED UP 4.65 POINTS OR 0.14%  / HANG SANG CLOSED DOWN 78.16 POINTS OR 0.28% 

2. Nikkei closed UP 89.20 POINTS OR 0.45%    /USA: YEN FALLS TO 110.01

3. Europe stocks OPENED MOSTLY IN THE GREEN     ( /USA dollar index FALLS TO  91.85 /Euro UP to 1.1974

3b Japan 10 year bond yield: RISES  TO  -+.034%/ GOVERNMENT INTERVENTION    !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.87/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD FINALLY IN THE POSITIVE/BANK OF JAPAN LOSING CONTROL OF THEIR YIELD CURVE AS THEY PURCHASE ALL BONDS TO GET TO ZERO RATE!!

3c Nikkei now JUST BELOW 17,000

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

3e WTI::  48.60 and Brent: 54.55

3f Gold UP/Yen UP

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 RISES TO  +.394%/Italian 10 yr bond yield UP  to 2.033%    

3j Greek 10 year bond yield FALLS TO  : 5.457???  

3k Gold at $1334.45  silver at:17.95 (8:15 am est)   SILVER NEXT RESISTANCE LEVEL AT $18.50 

3l USA vs Russian rouble; (Russian rouble DOWN 10/100 in  roubles/dollar) 57.77-

3m oil into the 48 dollar handle for WTI and 54 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 FAIR SIZED REVALUATION NORTHBOUND 

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 110.01 DESTROYING JAPANESE CITIZENS WITH HIGHER FOOD INFLATION

30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning  0.9597 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1492 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.

3p BRITAIN VOTES AFFIRMATIVE BREXIT/LOWER PARLIAMENT APPROVES BREXIT COMMENCEMENT/ARTICLE 50 COMMENCES MARCH 29/2017 

3r the 10 Year German bund now POSITIVE territory with the 10 year RISING to  +0.394%

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 2.158% early this morning. Thirty year rate  at 2.762% /POLICY ERROR)GETTING DANGEROUSLY HIGH

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

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

World Stocks Pull Back Amid Rising Concerns Of A Market Correction

For the first day in three S&P futures have pulled back modestly from record levels as some investors cautioned that gains had gone too far, too fast, European shares are mixed while Asian equities extended their longest rising streak in almost two months as continued gains in Japan and India offset the losses in Hong Kong. The dollar ended a two-day advance as TSY yields dropped in what has become a close correlation trade (see below) while oil and gold rose, perhaps in response to the ongoing plunge in bitcoin.

Following yesterday’s main, and largely disappointing events – the unveiling of the new iPhone(s) – European shares have faltered as a global equity rally showed signs of flagging, with Apple suppliers struggling after the new iPhone release disappointed with a later than expected shipping date. Chipmakers supplying to Apple were among the worst performers, with AMS down 3.9 percent, while Dialog Semiconductor slipped 1.7 percent and STMicro fell 1.1 percent.

Traders said their shares were under pressure due to Apple’s new $999 iPhone X shipping later than expected, on November 3. The price tag could also dent demand for the device in markets such as China. “With the iPhone coming in around $1,000 it will be interesting to see how healthy demand is,” said Mike Bell, global market strategist at JP Morgan Asset Management.  “If it’s relatively healthy I think it shows that there is still quite a lot of pricing power for U.S. companies and that consumers have confidence.”

Bloomberg writes this morning that record stock prices are provoking concern in some corners of the market, with the number of investors seeking protection from a possible plunge jumping. Leon Cooperman, the billionaire founder of hedge fund Omega Advisors, says a correction could start “very soon.” The imminent reduction of bond purchases by central banks in coming months will put pressure on riskier assets including high-yield bonds and equities, according to Citigroup Inc. According to the latest BofA FMS report, the last month saw the largest jump in market participants “taking out protection” in 14 months.

“Central banks will tread carefully and the direct impact of global tapering on the real economy will likely be modest,” Citigroup economists led by Ebrahim Rahbari wrote in a report. “But there is a material risk in our view that major asset price corrections could be triggered by this global tapering,” with U.S. high-yield corporate debt, euro-region periphery sovereign bonds, euro-area corporate bonds, global equities and emerging-market assets most at risk, they wrote.

Furthermore, geopolitical concerns also remain after North Korea said it will accelerate its plans to acquire a nuclear weapon that can strike the U.S. homeland in its first response to fresh United Nations sanctions. Earlier, Treasury Secretary Steven Mnuchin warned the U.S. may impose additional sanctions on China — potentially cutting off access to the American financial system — if it doesn’t follow through on the new UN restrictions

With all that, Europe’s Stoxx 600 index headed for the first drop in six days after U.S. benchmarks and the MSCI All-Country World Index closed at all-time highs a day earlier. Miners led the decline as the price of industrial metals including copper and nickel retreated.

The MSCI Asia Pacific Index advanced 0.1% with basic materials and consumer discretionary shares rising the most among industry groups. Hong Kong’s Hang Seng Index fell 0.3 percent, while the Shanghai Composite Index fluctuated before adding 0.1 percent.  The Topix index rose 0.6 percent at the close in Tokyo. Australia’s S&P/ASX 200 Index was little changed and the Kospi index in Seoul finished the session 0.2 percent lower. Among Apple suppliers, Hon Hai Precision Industry Co. and Pegatron fell, weighing on the Taiex index, which was down 0.7 percent. AAC Technologies Holdings Inc. in Hong Kong also declined. Apple slid along with some of its biggest suppliers on Tuesday.  Japan’s Topix climbed for a third day as investors focused on the local currency’s decline. India’s benchmark S&P BSE Sensex rose to a five-week high, led by the country’s most-valued company Reliance Industries Ltd. Hong Kong’s Hang Seng Index declined after nearing the key resistance level of 28,000. “Positive overnight leads support Asian markets to seek continued upside in the day, though we may witness more caution within the region,” Jingyi Pan, a market strategist at IG Asia Pte Ltd, wrote in an note

In FX, the overnight session was dominated by a sharp reversal in the pound, with U.K. wages coming in weaker than expected underscored the dilemma facing Bank of England policy makers meeting on Thursday to review interest rates. Meanwhile the theme of inflation uptrend is intact across Europe, with CPI prints in Germany and Spain matching estimates; dollar bulls turn cautious, take some money off the table as market attention turns to U.S. CPI data on Thursday, while Canadian dollar advances as WTI crude rises for a third day; Treasuries and core euro-area bonds trade steady, with brief pressure on bund futures heading into auction supply window.

In rates, the yield on 10-year Treasuries fell one basis point to 2.16 percent.  Germany’s 10-year yield decreased one basis point to 0.39 percent.  Britain’s 10-year yield dipped two basis points to 1.087 percent.

West Texas Intermediate crude extended an advance after the International Energy Agency said global oil demand will climb this year by the most since 2015. Gold climbed 0.1 percent to $1,332.60 an ounce. Copper declined 1.6 percent to $2.99 a pound, the lowest in more than three weeks.  The Bloomberg Commodity Index fell less than 0.05 percent to 84.79.

Economic data include MBA mortgage applications, PPI and oil inventories. Cracker Barrel and United Natural are reporting earnings

Market Snapshot

  • S&P 500 futures down 0.1% to 2,493.00
  • STOXX Europe 600 down 0.3% to 380.43
  • MSCI Asia up 0.2% to 163.07
  • MSCI Asia ex Japan down 0.08% to 539.04
  • Nikkei up 0.5% to 19,865.82
  • Topix up 0.6% to 1,637.33
  • Hang Seng Index down 0.3% to 27,894.08
  • Shanghai Composite up 0.1% to 3,384.15
  • Sensex up 0.5% to 32,328.75
  • Australia S&P/ASX 200 down 0.04% to 5,744.26
  • Kospi down 0.2% to 2,360.18
  • German 10Y yield fell 1.3 bps to 0.388%
  • Euro up 0.2% to $1.1986
  • Italian 10Y yield rose 5.6 bps to 1.733%
  • Spanish 10Y yield fell 0.9 bps to 1.593%
  • Brent futures up 0.5% to $54.56/bbl
  • Gold spot up 0.1% to $1,333.08
  • U.S. Dollar Index little changed at 91.84

Top Overnight News

  • Secretary of State Rex Tillerson is consulting U.S. allies in Europe as he seeks a way to toughen restrictions on Iran’s nuclear program a month before President Trump faces a deadline to decide whether to walk away from what he’s called “the worst deal ever”
  • Germany’s August harmonized CPI remained unchanged at 1.8% in the final
    print, in line with estimates; Spain August CPI final reading matches
    forecast
  • In its first official response to new United Nations sanctions, North Korea said it will accelerate its plans to acquire a nuclear weapon that can strike the U.S. homeland
  • North Korea’s latest nuclear test may have been more than twice as powerful as first thought, according to an analysis by 38 North
  • Merkel’s bloc gets 37% support, the lowest for 4 months, in Forsa poll
  • Tuesday’s protests across France won’t deter the government from pushing through its plan to loosen the country’s labor law, Prime Minister Edouard Philippe said
  • U.K. Prime Minister Theresa May is in a double bind as she tries to navigate the politics of Brexit while keeping businesses on side: even when she thinks she’s giving companies what they want, they say she’s made it worse
  • Denmark faces negative rates until 2020, central bank study says
  • Seadrill Files for Bankruptcy in Bid to Shrink Debt Load
  • OPEC Is Said to Discuss Extending Cuts by More Than 3 Months
  • Toshiba Signs Memo With Bain, Struggles to Sell Chip Unit
  • Bain Is Said to Gather $9.4 Billion for New Fund, Topping Target
  • UBS’s Orcel Sees Rocky 2018 For Banks’ Profit as MiFID Kicks In
  • Oil Trades Near $48 as IEA Sees Fastest Demand Growth in 2 Years
  • Bayer Sells $1.4 Billion of Covestro on Path to Separation
  • Trump Premium Gone From U.S. Banks Brings Opportunities: Goldman
  • Pandit Sees 30% of Banking Jobs Disappearing in Next Five Years
  • Deutsche Bank Said to Pledge Cap on U.S. Use of German Deposits

Asia equity markets traded mixed as the momentum from Wall St. was counterbalanced by weakness in Apple suppliers following the tech giant’s product event. ASX 200 (+0.1%) and Nikkei 225 (+0.5%) gained at the open after a trifecta of record closes for the S&P 500, DJIA and Nasdaq, with strength in commodity names and financials leading the upside in Australia. Shanghai Comp. (- 0.1%) and Hang Seng (-0.3%) were subdued with underperformance in the Hong Kong benchmark on a continued pull-back from the 28,000 level, while disappointment was also seen across the Apple supply chain after the tech giant’s product announcement. 10yr JGBs were lower as positive risk appetite prevailed in Japan, although downside was stemmed amid the BoJ’s presence in the market for just below JPY 1tln of JGBs in 1yr-10yr maturity range. PBOC injected CNY 30bln via 7-day reverse repos, CNY 20bln via 14-day reverse repos and CNY 20bln via 28-day reverse repos. PBoC set CNY mid-point at 6.5382 (Prev. 6.5277)

Top Asian News

  • Record Flows to Bearish ETF Shows Taiwan Equities Skepticism
  • RBA’s Harper Says Growth Too Slow to Justify Rate Increase
  • Baring Private Equity Is Said to Restart Sale of SAI Assurance
  • Coal Stocks Lead Declines by Indonesian Miners on Price Concerns
  • Topix Index Posts Biggest Three-Day Gain Since May on Tech Rally
  • Offshore Yuan Interbank Costs Surge as Banks Seen Hoarding Cash
  • Banker Fees on Japan Post Deal Are Said to Top Tobacco Sale

Equity markets trade mixed in Europe, as the FTSE behaves as one of the noticeable underperformers, as both the 100 and 250 struggle amid the pound’s strength yesterday. Sectors see materials underperform, with Glencore and Rio Tinto suffering despite an article from the FT noting market speculation that the two companies merger plans may be revived. The Bund auction will highlight issuance today; the market holds steady as we approach the bidding deadline. However, Portugal and Italy have seen some selling before their respective auctions. Price action has been seen in the UK, as Gilts did see a slight bid ahead of the BoE meeting Thursday, as a result of the marginal miss in the aforementioned UK jobs figures. The UK sold GBP 2.5bln 1.25% in its 2027 Gilt Auction at an average yield 1.161%, b/c 2.25 (Prev. b/c 2.56) and tail 0.2bps Germany sold EUR 2.446bln vs. Exp. EUR 3bln 0.5% 2027 Bund Auction with a b/c 1.6 (Prev. 1.27), average yield 0.39% (Prev. 0.41%) and retention of 18.5% (Prev. 19%)

Top European News

  • Merkel Is Said to Want Schaeuble to Keep His Job After Election
  • Novo Sees Earlier China Launch for Diabetes Drug Amid Epidemic
  • Denmark Faces Negative Rates Until 2020, Central Bank Study Says
  • Richemont’s European Sales Disappoint as Asia Races Ahead
  • Swatch Falls After Apple Shows LTE-Enabled Watch

In currencies, a nticipation was on the 9.30 UK earnings figures, with slight misses seen in both the average earnings issues. GBP has been thenoticeable mover for the morning, cable still resides around recent highs, as all eyes now move to the BoE tomorrow. The lack of safe-haven flows has continued, with the unwinding of recent positions being the theme of the week. Despite Twitter source comments overnight reporting satellites detected new activity in alternate North Korea tunnel portal areas, suggesting preparations for future underground nuclear tests; no reversal was seen in the risk tone. USD/JPY has continued to trade above 110.00, with the figure behaving as support overnight, bulls will be looking for a break of 110.60 to go on and test 111.00, however, we could see a retest of yesterday’s levels first. UOB are evident of this, placing a long limit order with an entry at 109.80. CHF pairs will be in focus this week with the SNB on Thursday, the mentioned dampening of geopolitical fears in the market have caused some franc selling this week; as USD/CHF looks to trade though 0.9620 and break the Aug 16th downward trendline resistance. EUR/CHF now looks towards August’s high at 1.1537, the bullish attacks could be supported by tone from the SNB tomorrow. ING FX expect the SNB to fan the flames of divergence between itself and the ECB, allowing the rate spreads to widen, one thing to watch tomorrow is if the SNB drop the adverb ‘significantly’ when referring to the strength of CHF.

In commodities, OPEC commentary has once again fluttered into the market, resulting in a marginal bullish push in WTI and Brent crude futures. Bullish comments from the Kuwait oil minister stating that producers should comply with output cuts, were met by comments from Venezuela stating that OPEC and Non-OPEC are not close to a deal, yet did state that all options are open for an OPEC-Led supply cut pact.
DOE raised 2018 crude outlook world oil demand growth to 1.69mln bpd (Prev. 1.61mln bpd). Qatar’s energy minister Al-Sada said that it is appropriate for OPEC to look at measures beyond March and that participating countries have been successful in implementing commitments. (Newswires) Venezuela President Maduro said Opec/Non-Opec output cuts are likely to extend until March next year.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior 3.3%
  • 8:30am: PPI Final Demand MoM, est. 0.3%, prior -0.1%;
    • PPI Ex Food and Energy MoM, est. 0.2%, prior -0.1%. PPI Ex Food, Energy, Trade YoY, prior 1.9%
    • PPI Ex Food, Energy, Trade MoM, est. 0.1%, prior 0.0%; PPI Ex Food and Energy YoY, est. 2.1%, prior 1.8%
  • 2pm: Monthly Budget Statement, est. $119.0b deficit, prior $107.1b deficit

DB’s Jim Reid concludes the overnight wrap

I never thought I’d say these words but man it’s good to be back at work. The last two weeks have been wonderful and brutal in equal measures. The best bit has been taking nearly 2 year old Maisie to various clubs and classes. Although if I hear the Hokey Cokey again I’ll go nuts. As for the twins (James and Eddie) they are doing well. Identification is tricky apart from the fact that Eddie is smaller as unbeknown to us the cord was wrapped around him in the womb and he stopped growing towards the end of the pregnancy. However he is feeding ok now and slowly starting to put on weight. However not as much as James who treats meal times as the bond market treats QE. In fact feeding is brutal, especially at night. With one baby and a hard working, breast feeding wife I’m ashamed to say you can hide a little bit. However with premature twins there is no hiding place. They feed a minimum of 8 times a day and each feed takes around 90 minutes when you include nappy changes, pass the parcelling, the initial feed, the bottle of previously expressed milk as a top up as they are too small and weak to naturally feed for very long, the burping and comforting, then the new round of expressing fresh milk and then finally the cleaning and sterilisation of all the expressing units and bottles for next time. If this goes well at best you can get 90 minutes sleep between feeds.

However more often than not they don’t settle and you need to hold them in your arms until they are so asleep they don’t notice that you’ve put them back in their cot. Sometimes the feeds blend into each other. When in their cot whenever you put them down on their backs they naturally roll on their sides to cuddle each other. It is very sweet and we have many images that will take centre stage at their weddings in years to come. All I can say is being a mum to newborns requires a dedication that is astonishing to watch. More so with twins. Although having been ordered around for the last two weeks I’m looking forward to  revenge so my team had better watch out today.

So what did I miss? Well in my last EMR It was Jackson Hole, (very) elevated North Korean tensions and stress about the debt ceiling that was dominating markets. As it stands the fact that we have freshly agreed UN sanctions probably puts the ball back in the North Korean’s court in so far as the risk of unilateral and immediate US action has thus been reduced. Clearly if NK provokes the situation it will become a live issue again but as it stands the US is highly unlikely to make the next move. At the same time the debt ceiling has obviously been pushed out and with the devastating hurricane perhaps causing less havoc than that feared before the weekend, markets continue to take some safe haven hedges off the table. Indeed 10 year USTs and Bunds have now climbed 14bp and 11bp off their intra-day lows from Friday (+4bp and +6bp yesterday).

The bond market sell off received an extra push yesterday with the UK August inflation print which surprised on the upside. Headline inflation rose 0.6% mom (vs. 0.5% expected), but the bigger surprise was core inflation which increased 0.6% mom, lifting through-year inflation to 2.7% yoy (vs. 2.5% expected) – the highest reading since December 2011. Within the details, the inflation pick up was led by clothing and footwear (+4.6% yoy) and prices for household goods (+4.2% yoy). Elsewhere, the PPI and retail price index were also higher than expected, with PPI at 0.4% mom (vs. 0.1% expected) and RPI at 0.7% mom (vs. 0.5% expected).

In response, Gilts were sold off with yields up 9bp to 1.132%, Sterling rallying 0.91% versus the Greenback and the chance of a rate hike next February rising from 44% to 61% (per the Bloomberg calculator). To be fair, other sovereign bond yields were also higher, in part driven by the improving risk sentiment. Core and peripheral bond yields increased 3-7bp across the maturities, with Bunds (2Y: +3bp; 10Y: +6bp), French OATs (2Y: +3bp; 10Y: +7bp), Italian BTPs (2Y: +3bp; 10Y: +6bp) and Portuguese (2Y: +3bp; 10Y: +5bp) yields all higher Elsewhere, US bond yields were modestly higher yesterday (2Y: +2bp; 10Y: +4bps), but  have rallied 1bp this morning.

Although the inflation print is not going to change the BOE policy rate tomorrow, it will be interesting to see how much of a hawkish tone we get. For those who may have missed it, DB’s Mark Wall has outlined his expectations for the BOE rate decision tomorrow. The team continues to expect the BoE to remain on hold until uncertainty about the Brexit transition diminishes, as too many aspects of the policy trade-off hinge on the outcome. For more details Continuing on the inflation theme, the Swedish inflation print for August wasn’t as weak as feared at -0.2% mom (vs. -0.3% expected) yesterday and later on today, we will get the US PPI reading where our team expect a 0.2% mom print at the core level, which will likely see annual inflation rise three-tenths to 2.1% yoy. All this before the main event of the week tomorrow namely the US’s August CPI inflation reading. Can we buck a trend that has seen US inflation undershoot expectations for 5 months?

Now shifting to the very long term, Austria has just sold €3.5bn of 100 year debt in the largest European century bond sale to date. I’m prepared to predict that none of us reading this will be around to see the bond mature, but it’s worth noting that Austria only became an independent republic again 62 years ago (as the second republic). Investor demand was reportedly strong, with bids reaching €11bn. The deal was priced at a yield of 2.112%, which compares favourably to other recent similar maturity bonds, including: Belgium (€0.1bn bond at 2.057%), Ireland (€0.1bn at 2.116%), Mexico (€1.5bn at 4.21%) and Argentina (US$2.75bn at 7.19%).

Moving on, this morning in Asia, markets are a little mixed but generally slightly higher as we go to print, with the Nikkei (+0.47%), ASX 200 (+0.25%), Kospi (+0.16%) leading the way but with the Hang Seng -0.46% and Chinese bourses only c.0.1% higher. US equity futures are pointing to a slightly softer start. This follows US bourses strengthening to another record high last night with the S&P +0.34% and both the Dow and Nasdaq up c.+0.3%. Within the S&P, only the utilities (-1.75%) and real estate sector were in the red, likely reflecting the higher bond yields, while gains were driven by the Telco and financials space.

In Europe, the Stoxx 600 rose for the fifth consecutive day (+0.52%), which the longest streak since April. Across the region, the DAX (+0.40%), CAC (+0.62%) rose but the FTSE dipped 0.17% likely due to the strength in Sterling. Indeed turning to currencies, most of the action was with Sterling after being up 0.79% versus the Euro and +0.91% versus the USD and to a one year high which slightly eases the pain of buying the new iPhone X! Elsewhere, the US dollar index was marginally higher while the Euro/USD edged up 0.12%. In commodities, WTI oil was 0.33% higher following reports that OPEC producers may extend production cuts. Precious metals were slightly higher (Gold +0.32%; Silver +0.56%) and industrial metals also rose modestly with Copper (+0.42%), Zinc (+1.16%) and Aluminium (+2.70%).

Away from the markets and onto the US tax reform. The messaging continues to be a little mixed. On the one hand Treasury Secretary Mnuchin recognized that “there is no question that the stock market has an expectation we are going to get tax reform done….and we are going to create significant growth…which is what this President and administration is focused on”. Further, he has also signalled that new tax rules could be backdated to January. However, in terms of finer details, Mnuchin echoed similar comments by House Speaker Ryan in that the corporate tax rate will be lower, but unlikely to be as low as the 15% originally envisaged by President Trump. Mnuchin said “I don’t know if we’ll be able to achieve that (15%) given budget issues, but we’re going to get this down to a very competitive level”.

Circling back to Brexit. Negotiators have confirmed that next week’s scheduled Brexit talks have been postponed one week to 25 September, with the aim to give both sides more time to ensure they make progress when they reconvene. The delay adds credence to prior reports that PM Theresa May was preparing to make an “important intervention / speech” on the 21st to kick start the talks. Elsewhere, Chancellor Phillip Hammond noted that the UK is seeking a transitional deal which keeps the “status quo”, where the UK keep its access to the EU single market after it departs. Notably, with the Tory Party conference also due in early October, some form of circuit breaker to the talks is likely required to meet the tight deadlines for an EU summit in October. We shall find out soon.

Before we take a look at today’s calendar, we wrap up with other data releases from yesterday. In the US, the July JOLTS report showed the number of job vacancies rose to a new high of 6.17m (vs. 6m expected). Elsewhere, the NFIB small business confidence index remained upbeat and was above market at 105.3 (vs. 104.8 expected). Over in France, the 2Q total payrolls was a tad lower at 0.3% qoq (vs. 0.4% expected) and Italy’s 2Q unemployment rate came in at 11.2% (vs. 11.3% expected).

Looking at the day ahead, the final reading on Germany’s August inflation will be out early in the morning (0.2% mom and 1.8% yoy expected). Then the Eurozone’s July IP and 2Q employment stats are due. Elsewhere, over in the UK, the ILO unemployment rate for July (4.4% expected), claimant count rate and jobless claims change stats are due. In the US, the PPI for August (2.1% yoy for core expected), monthly budget statement and MBA mortgage applications stats are also due. Onto other events, the EU Commission President Jean-Claude Juncker will deliver the state of the union address in France.

3. ASIAN AFFAIRS

i)Late TUESDAY night/WEDNESDAY morning: Shanghai closed UP 4.65 POINTS OR 0.14%   / /Hang Sang CLOSED DOWN 78.16 POINTS OR 0.28%/ The Nikkei closed UP 89.20 POINTS OR 0.45%/Australia’s all ordinaires CLOSED DOWN 0.04%/Chinese yuan (ONSHORE) closed UP at 6.5333/Oil DOWN to 48.60 dollars per barrel for WTI and 54.55 for Brent. Stocks in Europe OPENED GREEN EXCEPT LONDON. Offshore yuan trades  6.5352 yuan to the dollar vs 6.5333 for onshore yuan. NOW THE OFFSHORE MOVED A LITTLE WEAKER  TO THE ONSHORE YUAN/ ONSHORE YUAN MUCH STRONGER (TO THE DOLLAR)  AND THE OFFSHORE YUAN IS A LITTLE STRONGER TO THE DOLLAR AND THIS IS COUPLED WITH THE SLIGHTLY  WEAKER DOLLAR. CHINA IS VERY HAPPY TODAY 

3a)THAILAND/SOUTH KOREA/NORTH KOREA

NORTH KOREA/USA

Seems that Kim is using Bitcoin to help the nation facing UN sanctions

(courtesy zero hedge)

Is North Korea Using Bitcoin To Get Around UN Sanctions?

The latest round of United Nations sanctions against North Korea are designed specifically to prevent Kim Jong Un from obtaining hard currency. Luckily for the Kim regime, there’s always bitcoin.

According to Bloomberg, the isolated country, facing further restrictions on exports that would bring in desperately needed Chinese yuan, has increasingly been turning to bitcoin to circumvent the sanctions.

And to try and keep the illicit digital money flowing, the country has reportedly stepped up attacks against South Korean digital currency exchanges, causing disruptions in one of the largest markets for digital currencies like Ethereum and bitcoin, according to a new report from security researcher FireEye. In addition, the North has managed to breach an English-language bitcoin news website and collect bitcoin ransom payments from global victims of the malware WannaCry attack (although we thought that one had been linked to China?).

“So far this year, FireEye has confirmed attacks on at least three South Korean exchanges, including one in May that was successful. Around the same time, local media reported that Seoul-based exchange Yapizon lost more than 3,800 bitcoins (worth about $15 million at current rates) due to theft, although FireEye said there are not clear indications of North Korean involvement.”

According to Naeem Aslam, a contributor at Forbes, the North cultivated an “army of hackers” to go after digital-currency exchanges after the digital currency’s world-beating gains piqued Kim Jong Un’s interest.

“North Korea has an army of hackers who are constantly targeting South Korea, the hectic trading hub for cryptocurrency. The strategy would aid the country in bypassing many trade restrictions which also include the new sanctions. Moreover, the massive popularity of the cryptocurrency gained Kim’s attention and for crypto traders, this represents an opportunity. A higher demand for cryptocurrency would only boost its price,” said Forbes contributor Naeem Aslam.”

North Korea’s Reconnaissance General Bureau, which directly reports to Kim Jong Un, handles peacetime cyber operations from espionage to network disruptions and employs an estimated 6,000 officers, according to a 2016 report from the International Cyber Policy Centre at the Australian Strategic Policy Institute.

A group within the RGB known as TEMP.Hermit is believed to be responsible for the attacks on the South Korean bitcoin exchanges. FireEye said it has been linked to a 2015 attack on South Korea’s nuclear industry. The hackers have also been tied by other security firms to last year’s attack on Samsung Electronics Co.’s corporate messenger app and the breach of Sony Corp.’s film studio, which the FBI blamed on North Korea.

“They’re pretty capable actors in comparison to other North Korean activity we see,” said Luke McNamara, a researcher at FireEye and author of the new report. “They’ve been creative in how they use their cyber-espionage capability.”

And with the US likely to continue to push for still tighter sanctions as the North continues its provocative missile and nuclear tests – that is, until Russia and China finally say “enough” – the isolated country will likely deepen its reliance on the digital currency.

“We definitely see sanctions being a big lever driving this sort of activity,” McNamara said. “They probably see it as a very low-cost solution to bring in hard cash.”

 

“As more money goes into cryptocurrency exchanges and more people buy bitcoin and ethereum, exchanges become larger targets for this group,” said McNamara. He said so far he did not have evidence that Kim Jong Un’s regime has targeted cryptocurrency exchanges outside of South Korea, but did not rule out the possibility in the future.”

And with so many shadowy digital currency exchanges operating throughout Asia, cashing out the country’s digital currency positions would be easy.

“They could compromise an exchange and transfer those bitcoins to other exchanges elsewhere in Asia or exchange them for a more anonymous cryptocurrency,” said McNamara. “There are variety of things they could do to cash out.”

As Aslam points out, increasing demand for digital currencies from North Korea could ultimately lift prices on a global scale as the country is increasingly forced to transact at in bitcoin, Ethereum and their peers. North Korea isn’t the only country that’s turning to bitcoin out of a sense of desperation. As the Atlantic pointed out earlier this month, thousands of Venezuelans have taken to minería bitcoin – or mining bitcoin – to try and get their hands on precious US dollars.

Because, in some cases, it’s either that, or starvation.

b) REPORT ON JAPAN

end

late this afternoon:

with the world kind of relieved that North Korea would not launch any more missiles, imagery has shown considerable activity at  the launch site and maybe another nuclear test

(courtesy zerohedge)

 

c) REPORT ON CHINA

The USA threatens China with their removal from SWIFT if it violates North Korean sanctions.  This is a fast way for China to back its yuan with gold if this happens.

(courtesy zero hedge)

 

US Threatens To Cut Off China From SWIFT If It Violates North Korea Sanctions

In an unexpectedly strong diplomatic escalation, one day after China agreed to vote alongside the US (and Russia) during Monday’s United National Security Council vote in passing the watered down North Korea sanctions, the US warned that if China were to violate or fail to comply with the newly imposed sanctions against Kim’s regime, it could cut off Beijing’s access to both the US financial system as well as the “international dollar system.”

Speaking at CNBC’s Delivering Alpha conference on Tuesday, Steven Mnuchin said that China had agreed to “historic” North Korean sanctions during Monday’s United Nations vote. “We worked very closely with the U.N.  I’m very pleased with the resolution that was just passed.  This is some of the strongest items.  We now have more tools in our toolbox, and we will continue to use them and put additional sanctions on North Korea until they stop this behavior.”

In response, Andrew Ross Sorkin countered that “we haven’t been able to move the needle on China, which seems to be the real mover on this, in terms of being able to apply the real pressure. What do you think the issue is?  What is the problem?”

The stunner was revealed in Mnuchin’s answer: “I think we have absolutely moved the needle on China.  I think what they agreed to yesterday was historic.  I’d also say I put sanctions on a major Chinese bank.  That’s the first time that’s ever been done.  And if China doesn’t follow these sanctions, we will put additional sanctions on them and prevent them from accessing the U.S. and international dollar system.  And that’s quite meaningful.”

And to underscore his point, the Treasury Secretary also said that “in North Korea, economic warfare works. I made it clear that the President was strongly considering and we sent a message that anybody that wanted to trade with North Korea, we would consider them not trading with us.  We can put on economic sanctions to stop people trading.

In other words, to force compliance with the North Korean sanctions, Mnuchin threatened Beijing with not only trade war, but also a lock out from the dollar system, i.e. SWIFT, something the US did back in 2014 and 2015 when it blocked off several Russian banks as relations between the US and Russia imploded.

Of course, whether the US would be willing to go so far as to use the nuclear option, and pull the dollar plug on its biggest trade partner, in the process immediately unleashing an economic depression domestically and globally is a different matter.  So far Washington has been reluctant to impose economic sanctions on China over concerns of possible retaliatory measures from Beijing and the potentially catastrophic consequences for the global economy. Washington runs a $350 billion annual trade deficit with Beijing, while the PBOC also holds over $1 trillion in US debt.

Ironically, the biggest hurdle to the implementation of the just passed sanctions may be the president himself.  “We think it’s just another very small step, not a big deal,” Trump told reporters at the start of a meeting with Malaysian Prime Minister Najib Razak. “I don’t know if it has any impact, but certainly it was nice to get a 15-to-nothing vote, but those sanctions are nothing compared to what ultimately will have to happen,” said Trump who has vowed not to allow North Korea to develop a nuclear ballistic missile capable of hitting the United States.

Separately, at a hearing of the House Foreign Affairs Committee on Tuesday, Republican Chairman Ed Royce said the U.S. should target major Chinese banks, including Agricultural Bank of China Ltd. and China Merchants Bank Co., for aiding Kim’s regime. Russia also came in for criticism. Assistant Treasury Secretary Marshall Billingslea said in prepared remarks to the committee that North Korean bank representatives “operate in Russia in flagrant disregard of the very resolutions adopted by Russia at the UN.”

While China and Russia supported the latest UN sanctions, officials made clear they were troubled by Haley’s comments in the Security Council that the U.S. would act alone if Kim’s regime didn’t stop testing missiles and bombs. They emphasized the world body’s resolution also emphasized the importance of resolving the crisis through negotiations. “The Chinese side will never allow conflict or war on the peninsula,” Foreign Ministry spokesman Geng Shuang said in a statement on Tuesday.

In a soundbite late on Tuesday, Japan’s Nikkei quoted prime minister Shinzo Abe who said that “in the end, [the North Korean] problems should be solved through diplomatic dialogue,” adding that Japan will “work together with the international community to apply maximum pressure, so that North Korea commits to perfect, verifiable and irreversible denuclearization.” For Japan to engage with the regime, he stressed it would have to be “on the condition that North Korea commits to” this complete denuclearization.”

Which, of course, won’t happen: “sanctions of any kind are useless and ineffective,” Russian President Vladimir Putin told reporters earlier this month at a summit in Xiamen, China. “They’ll eat grass, but they won’t abandon their [nuclear] program unless they feel secure.

Predictably, North Korea’s Foreign Ministry slammed the sanctions saying it “condemns in the strongest terms and categorically rejects” the United Nations adding more sanctions, North Korea’s state-run KCNA reported on Wednesday morning. Instead, North Korea warned it “will redouble efforts to increase its strength” as it seeks to establish “practical equilibrium” with U.S.

And so, not only is the entire geopolitical circle jerk back at square one, but the ball is again back in North Korea’s court, while the decision on whether or not to launch another ICBM really depends on whether China will give it the quiet go ahead; a China which responds notoriously poorly to being threatened in the global financial arena, like for example when the US threatens to kick it out of the global dollar system…

end

Late this afternoon:  China will not be happy with Trump blocking Chinese acquisition of chipmaker Lattice Semiconductor

(courtesy zerohedge)

 

Trump Blocks Chinese Acquisition Of Chipmaker Lattice Semi Over “Security Risk”

Tyler Durden's picture

In a move that will likely cause at least a few frowns in Beijing, Bloomberg reports that President Trump blocked a Chinese-backed buyer from acquiring chipmaker Lattice Semiconductor, not only a “personal rebuke that bodes poorly for several other Chinese buyers seeking U.S. security clearance for their acquisitions”, but also a symbolic escalation of the “cold” trade war with China, hinting that the Trump administration will no longer allow China to acquire advanced US intellectual property, especially when national security may be on the line.

“Consistent with the administration’s commitment to take all actions necessary to ensure the protection of U.S. national security, the president issued an order prohibiting the acquisition,” Treasury Secretary Steven Mnuchin said in a statement.

View image on TwitterView image on TwitterView image on Twitter

Here’s Trump’s order blocking the sale of Lattice Semiconductor to a China-backed fund

The White House said that “the national-security risks posed by the deal included the Chinese government’s role in supporting this transaction, the importance of semiconductor supply chain integrity to the United States government, and the use of Lattice products by the United States government.”

Trump’s move builds on years of U.S. opposition to China’s efforts to bolster its chip industry by buying American technology. China, the world’s largest chip market, has been on the hunt for acquisitions in the field as it looks to build a domestic supply and rely less heavily on imports, as the $300 billion global semiconductor industry undergoes its biggest wave of consolidation. U.S. officials worry that China’s investment push could threaten the competitiveness of American industry and give Beijing access to cutting-edge technology with commercial and military applications.

According to Bloomberg, the deal block was just the fourth time in 27 years that a U.S. president has ordered a foreign takeover of an American firm stopped because of national-security risks.

Trump acted on the recommendation of a multi-agency panel, the White House and the Treasury Department said Wednesday. The spurned buyer, Canyon Bridge Capital Partners LLC, is a private-equity firm backed by a Chinese state-owned asset manager.

Other Chinese deals currently under review include MoneyGram International Inc.’s proposed sale to Ant Financial, the financial-services company controlled by Chinese billionaire Jack Ma. Ironically, the government is also examining an agreement by Chinese conglomerate HNA Group Co. to buy a stake in SkyBridge Capital LLC, the fund-management company founded by Anthony Scaramucci, who was briefly Trump’s White House communications director.

As Bloomberg explains, Portland, OR-based Lattice went to uncommon lengths in hopes of saving its $1.3 billion sale to Canyon Bridge, which was first announced in November. Acquisitions of U.S. companies like Lattice by overseas buyers are reviewed by the Committee on Foreign Investment in the U.S., a panel staffed by senior officials from the Treasury, State, Homeland Security and Defense departments. CFIUS can bless deals or recommend changes to address security concerns. If it doesn’t like a deal, it can recommend the president block it. Lattice and Canyon Bridge refiled three times without winning approval before making the unusual decision to appeal to Trump in hopes of winning him over with a pledge to save jobs.

The failed Lattice acquisition is at least the third Chinese deal that has collapsed this year after failing to win approval from the security panel. The others are HNA’s investment in Global Eagle Entertainment Inc., an in-flight entertainment and internet-services provider, and T.C.L. Industries Holdings’ proposed purchase of Inseego Corp.’s mobile-broadband business.

Now the question is whether China will be sufficiently angered by the decision to tacitly give North Korea the green light to lob one more ICBM in the skies over Japan…

LSCC stock moved sharply lower on the report, although it has since recovered much of its losses, as the deal collapse had been previously telegraphed, and now opens up the company for competitive bids.

Hedge funds are abandoning their short positions on China as they say it is just north worth fighting.  Only Kyle Bass remains

(courtesy zerohedge)

“It’s Not Worth Fighting” – Hedge Funds Are Dumping Their China Shorts

Pretty soon, China bears will be as rare as the Giant Panda.

At least that’s what Bloomberg suggested in a story about how Chinese markets have continued to defy proclamations that country’s economy would soon collapse in an avalanche of bad debt, exposing rampant corporate fraud. Or that a rash of outflows and the pressure of short sellers would force a massive yuan devaluation. Or that the exposure of rampant fraud and abuse in its corporate sector would tank local markets, which rely heavily on shady investment products.

We’ve repeatedly noted when fund managers who once loudly touted their China-related positions either moderated, or changed their minds completely. Just last week, Corriente Advisors’ Mark Hart announced the end of a seven-year options position that would’ve seen a massive payoff if the yuan dropped 50%. As we noted, he’d spent $240 million rolling over the options.

Before that, Kyle Bass, during an appearance on Adventures in Finance, said that while he was 100% certain his thesis will ultimately prove correct, calling the timing has obviously proven difficult.

Bass, in his interview, cited shady retail investment products that have been used to backstop $40 trillion in debt with only $2 trillion in equity as a looming sign of a collapse. (We’ve also noted other questionable financing deals like the use of collateralized commodity transactions, which we discuss in greater detail in “Did China’s Bronze Swan Just Arrive? Copper Inventories Crash Most In History”).

Kyle Bass

Bloomberg has a more complete accounting of how hedge fund managers’ views on China have “evolved” this year, as the promise of the Shanghai Composite’s massive correction, and subsequent yuan devaluation in 2015 proved to be teasers for deeper declines that never materialized.

Crispin Odey (Odey Asset Management): Said the yuan would slide 30% against the dollar after its 1.8% devaluation in August 2015.

Here’s Bloomberg:

“Odey has moderated his views – somewhat. He’s shorting metal stocks on expectations that China’s economy will slow in the second half. But he says betting against the yuan is no longer worth the trouble. ‘They can control their currency very easily,’ he said in an Aug. 8 interview, citing China’s massive current-account surplus. ‘It’s not really worth fighting very much.’”

Kevin Smith (Crescat Capital): Smith said the yuan was “massively overvalued” before the August 2015 devaluation. Now, he is one example of a bear who’s standing by his position despite absorbing stomach-churning losses.

“Smith is sticking to his bearish bets via currency options and short positions in Chinese stocks, even after his macro fund lost about 12 percent so far this year. He said last month that his “mid-target” for the yuan is a 70 percent plunge over the next year.”

John Burbank (Passport Capital): He said in late 2015 that a hard landing in China could trigger a global recession. In May 2016, he called for a major yuan devaluation. Though he hasn’t publicly commented on China in a while, Bloomberg says a July 31 investor letter suggests his “views have moderated.”

While he predicted China’s restrictions on housing and credit this year would be “detrimental” for commodity demand in the second half, he noted that the Communist Party continues to support the economy.

“Recent economic data has in fact been supportive of a continuation of strong growth near-term, with a slowdown possibly pushed to 2018,” Burbank said.

Douglas Greenig (Florin Court Capital): He said in June 2016 that China might devalue its currency because of Brexit.

Now his “quantitative modeling” has changed his mind; he’s now a China bull.

“Locals could sell more currency, but foreign inflows may offset that,” he said in a phone interview.

In summary, Chinese markets have performed strongly this year. Despite calls for further weakness, the yuan has rallied more than 6 percent from its eight-year low against the dollar in December. Chinese credit markets have quieted down after a period of turbulence triggered by a PBOC crackdown on rampant lending, and the Shanghai Composite Index has rallied to its highest level in nearly two years.

Still, at least for yuan bears, there may be a silver lining. The PBOC recently struck down a policy that required sales desks to hold 20% of revenues from sales of FX derivatives in reserve – effectively opening the door to short-sellers as the bank ironically now seeks to stem the currency’s advance against the dollar.

end

5. RUSSIA AND MIDDLE EASTERN AFFAIRS

This was largely expected except from the Western allies. Turkey pivots completely towards Russia and signs a missile deal.  Now what will Turkey do with its 3 million migrants holed up inside their country..will they release them onto Greece?

(courtesy zerohedge)

“What Did They Expect?” Turkey Pivots From NATO, Signs Russia Missile Deal

Confirming, and sending the clearest sign of his previously discussed pivot toward Russia and away from NATO and the West, on Tuesday President Recep Tayyip Erdogan announced that Turkey had signed a deal to purchase a Russian surface-to-air missile system, and paid the first installment. The deal cements Turkey’s recent rapprochement with Russia, despite differences over the war in Syria, the downing of a Russian fighter jet over Turkey in late 2015 and the assassination of a Russian ambassador earlier this year, and comes as Turkey’s ties with the United States and European Union have become strained to the point of breaking.

Although the missile purchase from Russia was made public several months ago, Erdogan’s announcement was the first confirmation that Turkey had transferred money to pay for the S-400 missile system.

“Signatures have been made for the purchase of S-400s from Russia,” Erdogan said in comments published in several newspapers on Tuesday. “A deposit has also been paid as far as I know.”

As the NYT writes, “the purchase of the missile system flies in the face of cooperation within the NATO alliance, which Turkey has belonged to since the early 1950s. NATO does not ban purchases of military hardware from manufacturers outside the American-led alliance, but it does discourage members from buying equipment not compatible with that used by other members.”

According to reports in the Russian media, Turkey is to get four batteries of S-400 launchers complete with targeting radar and control posts. Some aspects of the deal are reportedly to be finalized, but Russian officials said the contract furthers Russia’s geostrategic interests.

* * *

Predictably, the Pentagon promptly reiterated its concerns over the deal, which it said undermines inter-operability of weapons systems among NATO allies. “We have relayed our concerns to Turkish officials regarding the potential purchase of the S-400. A NATO inter-operable missile defense system remains the best option to defend Turkey from the full range of threats in its region,” spokesman Johnny Michael said in a statement.

A NATO official in Brussels where the alliance is headquartered, said that no NATO member currently operates the Russian missile system and that the alliance had not been informed about the details of the purchase by Turkey. “What matters for NATO is that the equipment allies acquire is able to operate together,” the official said, speaking on the condition of anonymity as required by alliance procedures. “Interoperability of allied armed forces is essential to NATO for the conduct of our operations.”

However, on Wednesday Turkish President Recep Tayyip Erdogan slammed the critics of Turkey’s deal with Russia, saying Ankara had no intention of waiting for the protection of its NATO allies.

“They have gone crazy because we made a deal for S-400s,” Erdogan said Wednesday in a speech to the ruling AKP mayors in Ankara, as cited by Hurriyet.

“What do you expect? Should we wait for you? We take care of ourselves in every security point. We are taking precautions and we will continue to do so,” the Turkish leader said.

Erdogan criticized the reluctance of US and Israel to authorize supply of combat drones to Turkey as another example of how Turkish security was sidelined by its allies.

“When they did give [drones], their repair and maintenance put us in a difficult position. Now [Turkey] has come to a point where it can produce its own unmanned, armed air vehicles. And now they are uncomfortable with that,” Erdogan added.

Erdogan also dismissed issues of interoperability, brand loyalties or the geopolitical optics of such a sale. “Nobody has the right to discuss the Turkish republic’s independence principles or independent decisions about its defense industry,” the daily newspaper Hurriyet reported him as saying.

“We make the decisions about our own independence ourselves,” he said. “We are obliged to take safety and security measures in order to defend our country.”

As the NYT adds, Erdogan’s announcement — made to Turkish journalists aboard his presidential jet as he returned from Kazakhstan — appeared timed as a response to two judicial cases announced last week in the United States. One is against his presidential bodyguards, who are charged with assaulting protesters when Mr. Erdogan visited Washington this year. The other is against a group of Turks, including a former minister, accused of breaking United States sanctions against Iran. Erdogan has angrily criticized both cases.

* * *

The S-400 SAM is designed to detect, track and then destroy aircraft, drones or missiles. It’s Russia’s most advanced integrated air defense system, and can hit targets as far as 250 miles away. Russia has also agreed to sell them to China and India, both nations who are masters at reverse engineering.  Most concerning for NATO, however is that the systems delivered to Turkey would not have a friend-or-foe identification system, which means they could be deployed against any threat without restriction.

Turkey has been weighing options for acquiring long-range SAMs for years. In 2013, Ankara surprised other NATO members by announcing that it was going to purchase the FD-2000 system from China, sparking criticism from Washington. Defense observers speculated that Turkey played the China card to put pressure on its allies and get better terms for buying a NATO-compatible SAM system, such as the US-made Patriot PAC-3. The Chinese deal stalled and was eventually scrapped, with Turkey reportedly unhappy over Beijing’s reluctance to hand over the technology behind the advanced system. Last year Ankara announced that it was in talks with Russia over a potential purchase of the S-400.

Turkey has other reasons for the missile purchase. It needs to cultivate good relations with Russia, and it also needs to build its own military defense, said Asli Aydintasbas, a fellow at the European Council on Foreign Relations. “Turkey wants the deal,” she said, “and Russia is only too happy to drive a wedge into the NATO alliance.”

While NATO’s collective defense should have been sufficient for Turkey – NATO deployed Patriot missiles there during a rise of tensions with Syria in the past – Erdogan lost trust in the West since last year’s failed “coup attempt”, which he slammed repeatedly as a Western plot to oust him, and appears determined to secure his own defense.

Furthermore, the transfer of technology from Russia is attractive to Turkey: Erdogan has spoken also of his frustration at having requests to the United States for drones turned down, and of his satisfaction that Turkey developed its own.

Notably, Erdogan’s announcement of the deal with Russia came after Germany said that it was suspending all major arms exports to Turkey because of the deteriorating human rights situation in the country and the increasingly strained ties. “We have put on hold all big requests that Turkey sent to us, and these are really not a few,” the German foreign minister, Sigmar Gabriel, said during a panel discussion in Berlin on Monday, according to Reuters.

While the purchase of Russian missiles will take cooperation between the two nations to a new level, but is not the first time that Turkey has bought military equipment from Russia. It turned to Moscow in the early 1990s to buy military helicopters and armored personnel carriers. Last year, Russia and Turkey reached an agreement to revive a suspended natural-gas pipeline project.

Meanwhile, as the US military-industrial complex has flourished in recent months following a spike in deals with Saudi Arabia, South Korea and other nations courtesy of rising geopolitical tensions, Russia has remained largely squeezed out of the arms market in Western and Eastern Europe, even in countries that once bought nearly all their weapons from the Soviet Union, has looked for years to NATO’S eastern flank as a promising market and the alliance’s weakest link. It has also sold weapons to Greece, another NATO member and to Cyprus, which is not a member of NATO but houses British military bases and effectively serves as an outpost of the alliance.

Meanwhile, as Turkey’s suspicions toward the West have grown, relations with Russia warmed, driven by the personal relationship between Erdogan and Vladimir Putin. Erdogan has expressed personal admiration for Putin, to the consternation of many European and American leaders, if not President Trump. Erdogan has also shown a preference for the Russian model, with its sense of restoring a lost empire, returning Turkey to a more independent place in the world and rejecting Western democracy.

At the same time, the fact that Turkey belongs to NATO has only increased Mr. Putin’s desire to forge strong relations with Mr. Erdogan despite their differences over the conflict in Syria.

“Mr. Putin and myself are determined on this issue,” Erdogan told journalists about the missile deal.

6 .GLOBAL ISSUES

END

7. OIL ISSUES

Both West Texas oil and gasoline fall after a huge crude build up in inventory.  The huge production jump offsets the greatest gasoline inventory draw in history due to the hurricanes

(courtesy zerohedge)

WTI/RBOB Sink After Big Crude Build, Production Jump Offsets Greatest Gasoline Inventory Draw In History

WTI and RBOB prices are higher this morning following API’s reported the biggest gasoline draw in history (compared to EIA data). Of course, disruptions (Florida demand and Texas supply) remain dominant but DOE reports a massive 8.4mm draw in Gasoline inventories – the biggest draw ever. The reaction in prices is anti-climactic as production rebounded and crude built dramatically to offset the exuberance.

Bloomberg’s Javier Blas reminds readers that the report covers the period from 7:01 am on Friday, Sept. 1 to 7:00 am on Friday, Sept. 8. So a lot of disruption from Harvey (particularly from Sept. 1, 2, and 3) will still impact everything from refining intake to crude production and U.S. imports and exports.

API

  • Crude +6.181mm (+4.82mm exp)
  • Cushing +1.32mm (+1.6mm exp)
  • Gasoline -7.896mm (-1.5mm exp) – biggest draw ever
  • Distillates-1.805mm

DOE

  • Crude +5.888mm (+4.82mm exp) – biggest build in 6 mos
  • Cushing +1.023mm (+1.6mm exp- biggest build in 6 mos
  • Gasoline -8.428mm (-1.5mm exp) – biggest draw ever
  • Distillates -3.215mm – biggest draw in 6 mos

Bloomberg Intelligence energy analyst Vince Piazza notes that the impact from hurricane season will keep crude demand subdued, with roughly two million barrels of daily refining capacity off-line. Depressed gasoline consumption should persist temporarily on lower transportation use and suppressed refining utilization.

Gasoline inventories confirmed API’s data and saw the biggest draw in history as Crude and Cushing saw major builds…

The bearish data point is that total U.S. petroleum inventories (that’s crude, refined products, propane and the volatile “other oils” category) have built for the second consecutive week.

Total stocks up 1.7 million barrels, driven by big builds in crude, propane and other oils.

US Distillate exports fell to their lowest levels since 2010.

The massive collapse in US crude production last week – with most of Texas offline – has recovered somewhat with a 572k surge in production this week. However, it is clear that levels of production are well off pre-Harevy levels…

 

“We’ve had some supportive news from all three major oil industry bodies, OPEC seeing robust demand, IEA seeing the same and the EIA downgrading their outlook for U.S. production,” says Ole Hansen, head of commodity strategy at Saxo Bank.

“These are all things that point to a market that’s been in quite a better place than we’ve been in for a long time,” and prices had gained following API’s data, heading into the DOE data.

 

But it appears the biggest draw in history was not enough to hold RBOB prices up…

 

8. EMERGING MARKET

VENEZUELA

An excellent commentary about the troubles facing Venezuela.  The author describes how the once powerful state oil company PDVSA will face inevitable default

(courtesy Christopher Dembik/Saxo Bank)

 

Next Up For Venezuela: PDVSA’s Inevitable Default

Authored by Saxo Bank’s head of macro analysis Christopher Dembik via TradingFloor.com,

A Venezuelan default is only a matter of time.

While debt servicing has been a government priority, declining external liquidity and a deteriorating domestic situation (three-digit hyperinflation, shortages, and a political crisis between the government and the National Assembly) make it a daunting task.

By 2020, the country must repay 30% of the external debt due to expire in the next 23 years.

Venezuela can get access to liquidity via three main ways.

The first option is to borrow directly on the financial market which implies that the country must pay an increasingly prohibitive risk premium due to investors’ fear of sovereign default.

The second option, used intensively in recent years, is to borrow from allies, and especially China.

Since 2009, Venezuela has borrowed at least $60 billion from China (through the Venezuelan-China fund) in exchange for selling oil at a discounted price. Loans were used to pay foreign manufacturers and repay external debt, such as in 2015. This exchange of good practices persisted as long as oil prices were quite high and Venezuela’s political situation was fairly stable. Since 2016, China has made a strategic move to reduce exposure to Venezuela which resulted in the repatriation of Chinese oil engineers (who filled local labour shortages), the end of financial aid, and reduced oil imports.

In this context, it is quite unlikely that Venezuela will be able to count on China for repayment of its loans, which increases the probability of sovereign default in the medium term.

The last option is through the national oil company, PDVSA (Petróleos de Venezuela SA). As the country’s main source of income and access to foreign currency, PDVSA is key for those seeking to gain a real appreciation of Venezuela’s disarray and economic future.

Over the past five years, it has accounted for virtually all of the country’s foreign exchange earnings – about 93%. The financial mechanism is quite simple: PDVSA borrows cash in the US financial market via its local subsidiary Citgo Petroleum Corporation, the sixth-largest US refinery, then the money is transferred to PDVSA and a significant part is allocated to Venezuela’s government budget.

As bonds are issued under US law, which offer a good level of protection to investors, borrowing rates are more affordable than if bonds were issued under Venezuelan law. Until very recently, this has been the least costly way for the country to borrow.

However, access to liquidity and foreign currency is being called into question by PDVSA’s increasing financial difficulties. This dates back to 2003-2004 when then-president Hugo Chavez decided to transfer the majority of PDVSA’s revenues to the government budget in order to finance the Bolivarian missions – a series of social programmes – rather than investing in capex to increase the company’s productivity.

The lack of investment did not have an immediate impact on PDVSA’s financial situation as long as oil prices were above $100/barrel. After all, it was enough to cover the cost of producing one barrel of Venezuelan oil (which are among the most expensive barrels in the world to produce at around $23.50 versus $10 in the Arabian Peninsula)… and to balance the government budget.

The fall in oil prices from mid-2014 led to a massive drop in oil production, as well as lower profit margins and tax revenues.

So far, PDVSA continues to pay its bondholders cash on the barrelhead, which explains why 80% of them buy back bonds when they expire. The company tries to maintain the illusion of a good financial situation, but this is misleading.

The company is running out of cash. It keeps repaying bondholders in order not to cut off the Venezuelan government’s financing flow but it is already unable to pay the  foreign oil field services companies on which it relies.

Since 2015, PDVSA has made extensive use of various financial instruments (credit notes and commercial papers) to settle outstanding bills with foreign companies such as General Electric in order to delay the consequences of this problem. These instruments are not very liquid and are subject to haircuts, but they have two main immediate advantages.

First, they give PDVSA additional leeway in repaying its creditors, up to six years. Furthermore, they give creditors the possibility of being reimbursed by the confiscation of PDVSA assets upon decision of the International Chamber of Commerce, an independent international organization whose secretariat is in Paris.

In the near term, PDVSA faces a challenging debt repayment schedule since it needs to repay $3.2 billion due mostly in October and November. Based on official reports, the company only has $2 billion in cash to service its debt obligations. Nevertheless, a default is unlikely this year; fighting a political crisis and defaulting at the same time would be too complicated to handle.

Venezuela still seems willing and able to pay.

In the worst-case scenario, PDVSA might use a grace period of a few weeks, as it did last year, in order to pull coins out of the sofa to pay these bills. The company can still obtain a new loan from Russian oil company Rosneft and propose as collateral its oilfield stakes; it could get funding from Venezuela’s public banks (which has already been done recently for about $500 million); or the government can decide to use the central bank’s foreign reserves which are officially estimated at $10 billion, of which $1 billion is in cash and $9 billion in gold bars.

Nonetheless, default seems inevitable in the medium term due to the prolonged period of low oil prices and increased US sanctions. President Trump’s executive order of August 24, 2017, strengthened sanctions against PDVSA by prohibiting all transactions related to new debt with a maturity greater than 90 days and by forbidding Citgo from repatriating dividends in Venezuela.

By cutting access to an essential source of funding, the Trump administration is precipitating the default of PDVSA and, given the key economic role of the company, of Venezuela.

Any exit from the crisis will necessarily involve an increase in oil production. Since 2005, the country has been aiming to produce five million barrels per day but this target has never been reached and has been pushed back from year to year. In the first seven months of 2017, average oil production was 1.9 million barrels/day. The objective of multiplying oil production by 2.5 is achievable provided that the government lets the local private sector step in and signs agreements with foreign companies.

In this respect, it can draw inspiration from the US which has increased oil production from 4.3 million to 9.5 million barrels per day over the past five years by relying on numerous small-scale private shale oil companies. However, this also implies full respect of private property, protection of minority investors, and political stability.

end

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

Euro/USA   1.1974 UP .0003/REACTING TO  + huge Deutsche bank problems + USA election:/TRUMP HEALTH CARE DEFEAT//ITALIAN REFERENDUM DEFEAT/AND NOW ECB TAPERING BOND PURCHASES/ /USA FALLING INTEREST RATES AGAIN/HOUSTON FLOODING/EUROPE BOURSES mostly IN THE GREEN 

USA/JAPAN YEN 110.01 DOWN 0.212(Abe’s new negative interest rate (NIRP), a total DISASTER/SIGNALS U TURN WITH INCREASED NEGATIVITY IN NIRP/JAPAN OUT OF WEAPONS TO FIGHT ECONOMIC DISASTER/   

GBP/USA 1.3255 DOWN .0032 (Brexit  March 29/ 2017/ARTICLE 50 SIGNED

THERESA MAY FORMS A NEW GOVERNMENT/STARTS BREXIT TALKS

USA/CAN 1.2144 DOWN .0031 (CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA)

Early THIS WEDNESDAY morning in Europe, the Euro ROSE by 3 basis points, trading now ABOVE the important 1.08 level  RISING to 1.1974; / Last night the Shanghai composite CLOSED  UP 4.65 POINTS OR 0.14%     / Hang Sang  CLOSED  DOWN 78.16 POINTS OR 0.28% /AUSTRALIA  CLOSED DOWN 0.04% / EUROPEAN BOURSES OPENED  MOSTLY IN THE GREEN (EXCEPT LONDON)

The NIKKEI: this WEDNESDAY morning CLOSED UP 89.20 POINTS OR 0.15%

Trading from Europe and Asia:
1. Europe stocks  OPENED  MOSTLY THE GREEN 

2/ CHINESE BOURSES / : Hang Sang CLOSED DOWN 78.16 POINTS OR 0.28%  / SHANGHAI CLOSED UP 4.65 POINTS OR 0.14%   /Australia BOURSE CLOSED DOWN 0.04% /Nikkei (Japan)CLOSED UP 89.20 POINTS OR 0.15%   / INDIA’S SENSEX IN THE RED

Gold very early morning trading: 1332.95

silver:$17.92

Early WEDNESDAY morning USA 10 year bond yield:  2.158% !!! DOWN 1   IN POINTS from MONDAY night in basis points and it is trading JUST BELOW resistance at 2.27-2.32%.

The 30 yr bond yield  2.762, DOWN 1 IN BASIS POINTS  from TUESDAY night.

USA dollar index early WEDNESDAY morning: 91.85 DOWN 3  CENT(S) from TUESDAY’s close. 

This ends early morning numbers  WEDNESDAY MORNING

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And now your closing WEDNESDAY NUMBERS

Portuguese 10 year bond yield: 2.818% DOWN 3 in basis point(s) yield from TUESDAY 

JAPANESE BOND YIELD: +.0340%  UP  1 & 1/2  in   basis point yield from TUESDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.580% DOWN 2  IN basis point yield from TUESDAY 

ITALIAN 10 YR BOND YIELD: 2.04 UP 2 POINTS  in basis point yield from TUESDAY 

the Italian 10 yr bond yield is trading 46 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: +.402% DOWN 1/2  IN  BASIS POINTS ON THE DAY

END

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IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.1897 DOWN .0074 (Euro DOWN 74 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 110.61 UP 0.385(Yen DOWN 39  basis points/ 

Great Britain/USA 1.3216 DOWN  0.0072( POUND DOWN 72 BASIS POINTS)

USA/Canada 1.2195 UP .0020 (Canadian dollar DOWN 20 basis points AS OIL ROSE TO $48.97

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This afternoon, the Euro was DOWN  by 74 basis points to trade at 1.1897

The Yen FELL to 110.61 for a LOSS of 39  Basis points as NIRP is STILL a big failure for the Japanese central bank/HELICOPTER MONEY IS NOW DELAYED/BANK OF JAPAN NOW WORRIED AS AS THEY ARE RUNNING OUT OF BONDS TO BUY AS BOND YIELDS RISE  

The POUND FELL BY 72  basis points, trading at 1.3216/ 

The Canadian dollar FELL by 20 basis points to 1.2195,  WITH WTI OIL RISING TO :  $48.97

The USA/Yuan closed at 6.5415/
the 10 yr Japanese bond yield closed at +.0340%  UP 1 & 1/2 IN  BASIS POINTS / yield/ 

Your closing 10 yr USA bond yield UP 2  IN basis points from TUESDAY at 2.181% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic  USA 30 yr bond yield: 2.780 UP 1/2  in basis points on the day /

Your closing USA dollar index, 92.39  UP 51 CENT(S)  ON THE DAY/1.00 PM/BREAKS RESISTANCE OF 92.00 

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

London:  CLOSED DOWN  20.99 POINTS OR 0.28%
German Dax :CLOSED UP 28.80 POINTS OR 0.23%
Paris Cac  CLOSED UP 8.58 POINTS OR 0.16% 
Spain IBEX CLOSED UP 34.80 POINTS OR 0.34%

Italian MIB: CLOSED DOWN 00.10 POINTS OR 0.00% 

The Dow closed UP 39.22 OR 0.18%

NASDAQ WAS closed up 5.91  POINTS OR 0.09%  4.00 PM EST

WTI Oil price;  48.97  1:00 pm; 

Brent Oil: 54.84 1:00 EST

USA /RUSSIAN ROUBLE CROSS:  57.64 UP 22/100 ROUBLES/DOLLAR (ROUBLE LOWER BY 22 BASIS PTS)

TODAY THE GERMAN YIELD FALLS TO  +0.402%  FOR THE 10 YR BOND  4.PM EST EST

END

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:

WTI CRUDE OIL PRICE 5:00 PM:$49.35

BRENT: $55.07

USA 10 YR BOND YIELD: 2.194%  (ANYTHING HIGHER THAN 2.70% BLOWS UP THE GLOBE)

USA 30 YR BOND YIELD: 2.7902%

EURO/USA DOLLAR CROSS:  1.1886 DOWN .0085

USA/JAPANESE YEN:110.59  UP  0.362

USA DOLLAR INDEX: 92.42  UP 55  cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.3206 : DOWN 82 POINTS FROM LAST NIGHT  

Canadian dollar: 1.2179 down 4 BASIS pts 

German 10 yr bond yield at 5 pm: +0.402%

END

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

TRADING IN GRAPH FORM FOR THE DAY

Late-Day Stock-Buying-Panic Brings Record Highs On Trump Tax Plan Hope

 

Hope is a strategy…

 

As Bloomberg notes, Treasuries fell and the dollar gained as talk of a tax-cut outline on lawmaker’s desks by September 25 revived hopes for the “Trump trade” amid speculation President Trump is adopting a more bipartisan approach in dealings with both Houses of Congress. Revival of the President’s fiscal agenda overshadowed inflation data that showed producer prices for August rising less than economists’ estimates. Oil advanced after the International Energy Agency said demand will climb this year by the most since 2015 while the S&P 500 Index headed into the close little changed after closing at an all-time high a day earlier. Gold headed for its 4th consecutive losing session as investors favored riskier assets.

Small Caps outperformed on the day amid hope for tax reform (more domestically-oriented) as Trannies underperformed…NOTE the sheer panic-buying algos to get Nasdaq and S&P green into the close…

 

But of most note was the utter desperation to get the S&P green…

 

It appears AAPL’s buyback machine kicked in towards the close…

 

Financials managed to scramble back to their 50DMA…

 

While stocks are reaching record highs, VIX remains well off its record lows (for now)…

 

Bond yield continue to catch up to stocks…

 

Treasury yields backed up further, erasing all price gains since August FOMC Minutes release…

 

The Dollar Index rose for the 3rd straight day…

 

Notably today’s shift looks like USD catch up to Bonds’ weakness…

 

 

This is the biggest 3-day gain in 9 months…(biggest spike since the Dec rate hike)

 

Bitcoin tumbled further overnight but bounced back modestly this afternoon…

 

Gold prices fell for the 4th day in a row, mirroring USDJPY once again, with a slight bump on Mueller headlines probing social media…

 

Crude jumped after a big build? to one month highs…

 

and RBOB dropped after a big draw?)

 

…but copper was worst, extending its recent weakness…

 

Crushing Gundlach’s favorite indicator…

 

the Fed is not going to like this: PPI fails expectations: the Fed needs for inflation especially in wages to rise for their models to work

(courtesy zerohedge)

August Producer Price Rise Disappoints, Despite Gasoline, Consumer Loan Cost Surge

Despite significant acceleration year-over-year – thanks to a 9.5% surge in gasoline costs – producer price appreciation in August disappointed expectations. PPI Final Demand YoY accelerated from 1.9% to 2.4% (but fell below the 2.5% expectation), rising only 0.2% MoM.

The corest of the core PPI remained below The Fed’s mandated inflation target for the second straight month…

 

But headline PPI jumped to 2.4% YoY… perhaps putting more pressure on The Fed…

 

Prices for final demand goods advanced 0.5 percent in August, the largest rise since moving up 0.5 percent in April.Most of the August increase can be traced to the index for final demand energy, which climbed 3.3 percent. Prices for final demand goods less foods and energy moved up 0.2 percent.

In contrast, the index for final demand foods fell 1.3 percent. 

Three-quarters of the August increase in the final demand goods index can be traced to prices for gasoline, which jumped 9.5 percent .

Over half of the August increase in the index for final demand services can be attributed to prices for consumer loans (partial), which advanced 1.7 percent

This is the highest level of consumer loan price index since Nov 2015…

In other words, as inflation rises, the cost of taking out a loan to maintain your standard of living is also increasing…

end

Senator Heidi Heitkamp, democrat senator states that somebody must go to jail for the severe breach at Equifax

(courtesy zerohedge)

(courtesy zerohedge)

2 More Americans Affected By Mysterious ‘Sonic Attacks’ In Cuba

Late last year, reports began surfacing that US diplomatic personnel in Cuba were beginning to experience strange and inexplicable symptoms including dizziness, nausea, memory lapses, difficulty hearing and loss of balance. Initial reports attributed the symptoms to a “acoustic attack,” but neglected to provide any salient details about the specific nature of the attacks, or – more importantly – who might have carried them out. The Cuban government quickly denied any knowledge of the attacks.

Fast forward to last month, when CBS News reported that the attacks had caused at least 16 US embassy personnel to suffer traumatic brain injuries, as well as damage to their central nervous systems.

“The diplomats complained about symptoms ranging from hearing loss and nausea to headaches and balance disorders after the State Department said “incidents” began affecting them beginning in late 2016.

 

A number of diplomats have cut short their assignments in Cuba because of the attacks.

 

The source says American diplomats have also been subjected other types of harassment including vehicle vandalization, constant surveillance, and home break-ins.”

Now, the Associated Press is reporting that two more Americans were affected by the attacks, bringing the victim count to 21, and according to one State Department spokesperson, that number could continue to climb.

The additional two individuals appear to be cases that were only recently reported but occurred in the past.

 

The State Department said no new, medically confirmed “incidents” have taken place since the most recent one in late August. Earlier this month, the U.S. disclosed there had been another incident in August after previously saying the attacks had stopped.

 

It’s possible the number could grow even higher as more cases are discovered. State Department spokeswoman Heather Nauert said the U.S. continues to assess American personnel.”

The U.S. didn’t say how serious the newly disclosed incidents were. But the State Department said it was providing “the best possible medical evaluation and care” throughout the ordeal, including aid from a medical officer on staff at the embassy. As the disturbing incident has unfolded, the US has encouraged its diplomatic personnel to immediately report any strange symptoms.

* * *

For now the US government has avoided accusing the Cuban government of being involved in the attacks – though the US quietly expelled two Cuban diplomats from the country’s mission in Washington D.C. shortly before the CBS report – which is widely credited with shining a spotlight on the story – broke.

For its part, the State Department has also been unwilling to speculate about the attacks. However, as Hearing Health & Technology Matters explains, it’s likely the attacks were either carried out using infrasound (sound below 20 Hz) or ultrasound (sound above 20,000 Hz).

Of these two options, Jerry Punch, a researcher at Michigan State University, says infrasound, a not-uncommon torture technique, was the probably culprit for several reasons, which he explains below:

“Punch told HHTM that “compared to ultrasound, infrasound travels farther because of its long wavelengths, is difficult to attenuate by traditional noise-control methods, and potentially affects more people because it is broadly distributed. Paradoxically, infrasound would seem a poor choice as a weapon to be used deliberately against diplomats because it can’t easily be targeted toward specific individuals. Others who’ve not yet experienced symptoms may be affected, whether or not the attacks are deliberate, if the situation continues. If and when the attacks stop, it is likely that symptoms such as headache, dizziness, and nausea will subside. That would be consistent with news reports that symptoms stop when diplomats leave their areas of residence, and with the experiences of people who suffer adverse health effects, among them sleep disturbance, while living near wind turbines. Those individuals typically report that symptoms disappear when they leave their residences and reappear when they return home. Some have abandoned their homes altogether to escape the negative health impacts.”

It goes without saying that we wish for a speedy (and complete) recovery for every diplomat affected. But there are some far more significant issues here that should be addressed directly: How will these attacks influence the Cuba-US relationship? And more importantly, what is being done to hold the parties responsible to account?

While Trump said in June that he would “cancel” former President Barack Obama’s “one-sided deal” with Cuba, in reality, the administration has tightened restrictions on trade somewhat, but taken little meaningful action. Little has been said, or done, since then.

Now we wait to see if even more diplomats were affected.

end

My favourite economist..Rob Kirby on the huge amount of black dollars floating in the USA, on gold and silver

 

a must view..

(courtesy Rob Kirby/Greg hunter/USAWatchdog)

Dark Dollars Propping Up Failing System – Rob Kirby

By Greg Hunter On September 13, 2017 In Market Analysis

Forensic macroeconomic analyst Rob Kirby says few people have any idea how many “dark dollars” are out there. Kirby explains, “When you start talking about how many dollars there are in the world, nobody really knows. I would suggest to you the real quantity of dollars in the world is much greater than anyone imagines. A lot of these dollars are ‘dark,’ and they are held in the bowels of institutions like the Exchange Stabilization Fund (ESF). So, the world may be cruising along thinking the total number of dollars in the world is ‘X,’ but the true amount in the world, if you count the dark ones, might be three or four times ‘X’. This really means the money supply is much bigger than anyone understands or believes.” Kirby contends that the so-called “dark dollars” are being used to prop up the Treasury bond market. The ESF simply buys the debt and essentially hides it.

Then there is the price rigging in the gold and silver markets. Kirby says, “To sell a Bitcoin, you must possess a Bitcoin. If you have one Bitcoin, you cannot sell 500 of them. That’s plain and simple. This goes for JP Morgan or Citi Bank or Goldman Sachs, they can only sell Bitcoin that they own. In the gold market, they can sell all the gold they want. They can sell gold that doesn’t exist and will never be mined.” Kirby points out this is how the big banks suppress the price of gold and silver.

Kirby contends the U.S. dollar is a “rigged” game. Is it about to be knocked out by blockchain technology? Kirby says, “Absolutely. What the cryptos offer that the dollar doesn’t is decentralization. It’s the centralized U.S. fiat dollar and the dollar standard that requires everybody in the world, who wants to buy commodities in international markets, must first purchase U.S. dollars. Crypto currencies bypass the dollar and allow for transmission of ownership in a very rapid, cost effective manner. They bypass the dollar completely. What this really means is with the uptake and accelerated use of cryptos, countries will require less and less dollars in their reserve accounts to purchase the goods they want and need in the international marketplace. What happens when people don’t need dollars anymore? The dollars return home. They come back to America . . . which ultimately means inflation will come to America.”

Kirby says people should be looking to buy gold and silver for protection because it’s still relatively cheap compared to the exploding value of some crypto currencies. Kirby explains, “When you look at the price differential between silver and gold, you see an ounce of silver selling for around $18, and you see an ounce of gold going for $1,340, and that means you would need to sell 75 ounces of silver to buy one ounce of gold. The ratio in nature suggests you should be able to sell eight ounces of silver to buy one ounce of gold. This tells me one of those two prices is very wrong. Either silver is too cheap or gold is too expensive. I don’t think gold is too expensive because I think it’s undervalued too. That leads me to believe that silver is insanely priced and probably the most underpriced asset on the planet. . . . I think silver will be going up in price much more than gold, even though gold is going to go up in price dramatically.”

Join Greg Hunter as he goes One-on-One with Rob Kirby, founder of KirbyAnalytics.com.

Video Link

https://usawatchdog.com/dark-dollars-propping-up-failing- system-rob-kirby/

(To Donate to USAWatchdog.com Click Here )

 

 

that about does it for tonight

I will see you THURSDAY  night

Harvey.

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