OCT 20/GE DISAPPOINTS YET DOW RISES/GOLD DOWN $9.05 TO $1279.35 AND SILVER DOWN 22 CENTS TO $17.03

 

 

GOLD: $1279.35 DOWN $9.05

Silver: $17.03 DOWN 22 cents

Closing access prices:

Gold $1281.20

silver: $17.03

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: $1290.70 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1282.70

PREMIUM FIRST FIX:  $8.00(premiums getting larger)

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SECOND SHANGHAI GOLD FIX: $1292;60

NY GOLD PRICE AT THE EXACT SAME TIME: $1284.55

Premium of Shanghai 2nd fix/NY:$8.00PREMIUMS GETTING LARGER)  

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LONDON FIRST GOLD FIX:  5:30 am est  $1280.25

NY PRICING AT THE EXACT SAME TIME: $1280.40

LONDON SECOND GOLD FIX  10 AM: $1281.20

NY PRICING AT THE EXACT SAME TIME. 1281.40

For comex gold:

OCTOBER/

NOTICES FILINGS TODAY FOR OCT CONTRACT MONTH: 4 NOTICE(S) FOR  400  OZ.

TOTAL NOTICES SO FAR: 2443 FOR 244,300 OZ  (7.599TONNES)

For silver:

OCTOBER

 5 NOTICES FILED TODAY FOR

25,000  OZ/

Total number of notices filed so far this month: 784 for 3,920,000 oz

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Bitcoin:  $5567 bid /$5589 offer DOWN $16.00  (MORNING)

BITCOIN CLOSING;$6040.00 BID/$6060.00 UP $351.00

end

Let us have a look at the data for today

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In silver, the total open interest ROSE BY 1242 contracts from  191,844  UP TO 193,086 WITH RESPECT TO YESTERDAY’S TRADING (UP  25 CENTS).  THE CROOKS ARE STILL HAVING AN AWFUL TIME TRYING TO COVER THEIR MASSIVE SILVER SHORTS. 

RESULT: A GOOD SIZED RISE IN OI COMEX  WITH THE  25 CENT PRICE RISE.  OUR BANKERS COULD NOT COVER ANY OF THEIR HUGE SHORTFALL

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.965 BILLION TO BE EXACT or 138% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT OCT MONTH/ THEY FILED: 5 NOTICE(S) FOR 25,000  OZ OF SILVER.

In gold, the open interest ROSE BY A CONSIDERABLE 4711 CONTRACTS WITH THE  RISE IN PRICE OF GOLD ($7.20) .  The new OI for the gold complex rests at 529,655 .OUR BANKER FRIENDS  COULD NOT COVER ANY OF THEIR GOLD SHORTS. THE BANKERS RETREATED TO HIGHER GROUND 

 

Result: A GOOD SIZED INCREASE IN OI WITH THE RISE IN PRICE IN GOLD ($7.20). WE HAD ZERO BANKER GOLD SHORT COVERING AS THE BANKERS RETREATED TO HIGHER GROUND.

we had: 4 notice(s) filed upon for 400 oz of gold.

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

GLD:   

Tonight , NO CHANGES  in gold inventory at the GLD/

Inventory rests tonight: 853.13 tonnes.

SLV

Today:  NO change in inventory:

INVENTORY RESTS AT 322.271 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 1242 contracts from 191,844  UP TO 193,086(AND now A LITTLE CLOSER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) .  OUR BANKERS WERE AGAIN UNSUCCESSFUL IN COVERING THEIR SILVER SHORTS.

RESULT:  A STEADY INCREASE IN SILVER OI  AT THE COMEX WITH THE  RISE IN PRICE OF 25 CENTS WITH RESPECT TO YESTERDAY’S TRADING. OUR BANKER FRIENDS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO COVER ANY OF OUR SILVER SHORTS

(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

)Late THURSDAY night/FRIDAY morning: Shanghai closed UP 8.48 points or .25% /Hang Sang CLOSED UP 328.15 pts or 1.17% / The Nikkei closed UP 9.12 POINTS OR .04/Australia’s all ordinaires CLOSED UP 0.15%/Chinese yuan (ONSHORE) closed UP  at 6.618/Oil DOWN to 50.91 dollars per barrel for WTI and 57.05 for Brent. Stocks in Europe OPENED IN THE GREEN  .  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.6180. OFFSHORE YUAN CLOSED STRONGER TO THE ONSHORE YUAN AT 6.61790 AND //ONSHORE YUAN  STRONGER AGAINST THE DOLLAR/OFF SHORE STRONGER TO THE DOLLLAR/. THE DOLLAR (INDEX) IS STRONGER AGAINST ALL MAJOR CURRENCIES. CHINA IS HAPPY TODAY

)

3a)THAILAND/SOUTH KOREA/NORTH KOREA

i)North Korea/USA

b) REPORT ON JAPAN

c) REPORT ON CHINA

4. EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

6 .GLOBAL ISSUES

 

7. OIL ISSUES

8. EMERGING MARKET

9.   PHYSICAL MARKETS

10. USA Stories

Let us head over to the comex:

The total gold comex open interest ROSE BY A CONSIDERABLE SIZED 4711 CONTRACTS UP to an OI level of 529,655 WITH THE  RISE IN THE PRICE OF GOLD ($7.20 RISE IN YESTERDAY’S TRADING).   OUR BANKER FRIENDS HAD ZERO SUCCESS IN THEIR ATTEMPT  TO COVER  THEIR HUGE GOLD SHORTFALL YESTERDAY .

OCTOBER IS AN ACTIVE DELIVERY MONTH ALTHOUGH IT IS THE WEAKEST IN TERMS OF ACTUAL DELIVERIES AND OPEN INTEREST.  WE  VISUALIZED THAT THROUGHOUT THE MONTH OF SEPTEMBER, THE CROOKS UTILIZED THE EMERGENCY EFP SCHEME TO TRANSFER OBLIGATIONS OVER TO LONDON. IT THEN STANDS TO REASON THAT IF THE EMERGENCY WAS IN FORCE THROUGHOUT THE MONTH OF SEPTEMBER IT WOULD CONTINUE ON FIRST DAY NOTICE WHEREBY ANOTHER 7200 LONG COMEX CONTRACTS WERE GIVEN 7200 EFP’S.

Result: a  CONSIDERABLE SIZED open interest INCREASE  WITH THE  RISE IN THE PRICE OF GOLD ($7.20.)  .THERE WAS NO SHORTCOVERING YESTERDAY WITH THE BANKERS ADDING TO THEIR HUGE SHORTFALL WITH GOLD’S HIGHER PRICE. 

 

We have now entered the active contract month of Oct and here we saw a GAIN of 68 contracts UP TO 542 contracts.  We had 3 notices filed yesterday so we GAINED 71 contracts or an additional 7100 oz will stand for delivery at the comex in this active delivery month of October and 0 EFP notices were given. The low number of notices early in the delivery cycle is evidence of a lack of physical gold. We have just witnessed another queue jumping in the gold comex which is another indicator of physical shortage.

The November contract saw A LOSS OF 63 contracts DOWN to 875.

The very big active December contract month saw it’s OI loss OF 1238 contracts DOWN to 400,074

.

We had 4 notice(s) filed upon today for  400 oz

 VOLUME FOR TODAY (PRELIMINARY) 302,175

CONFIRMED VOLUME YESTERDAY: 390,228

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And now for the wild silver comex results.  Total silver OI ROSE BY 1242 CONTRACTS FROM 191,844 UP TO 193,086 WITH YESTERDAY’S 25 CENT RISE IN PRICE. WE  HAD ZERO BANKER SHORT COVERING AS THE CROOKS TRIED AND FAILED IN THEIR ATTRMPT TO  LOOSEN ANY SILVER LONGS FROM THE SILVER TREE.
We have now entered the non active contract month of October and here the OI GAINED 2 contacts UP TO 224.  We had 3 notices filed on yesterday so we gained 5 contracts or AN ADDITIONAL 25,000 oz will  stand for delivery and 0 EFP’s were issued.   November saw a LOSS of 1 contract(s) and thus FALLING TO  364 After November, the NEXT big active contract month is December and here the OI GAINED 778 contracts DOWN to 144,857 contracts.

We had 5 notice(s) filed for  25,000 oz for the OCT. 2017 contract

INITIAL standings for OCTOBER

 Oct.20/2017.

Gold Ounces
Withdrawals from Dealers Inventory in oz   n/a
Withdrawals from Customer Inventory in oz  
n/a oz
Deposits to the Dealer Inventory in oz    n/a oz
Deposits to the Customer Inventory, in oz 
 n/a
No of oz served (contracts) today
 
4notice(s)
400 OZ
No of oz to be served (notices)
538contracts
(53,800 oz)
Total monthly oz gold served (contracts) so far this month
2443 notices
244,300 oz
7.5987 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     xxx oz
Today we HAD  xx kilobar transaction(s)/ 
 WE HAD xx DEALER DEPOSIT:
total dealer deposits: xx oz
We had xxx dealer withdrawals:
total dealer withdrawals:  xx oz
we had xxx customer deposit(s):
total customer deposits; xx oz
We had n/a customer withdrawal(s)
total customer withdrawals; nil  oz
 we had xxx adjustment(s)
For OCT:

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 4 contract(s)  of which 0 notices were stopped (received) by j.P. Morgan dealer and 2 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 OCTOBER. contract month, we take the total number of notices filed so far for the month (2443) x 100 oz or 244,300 oz, to which we add the difference between the open interest for the front month of OCT. (542 contracts) minus the number of notices served upon today (4 x 100 oz per contract equals 298,100  oz, the number of ounces standing in this active month of OCT.
 
Thus the INITIAL standings for gold for the OCTOBER contract month:
No of notices served  (2443) x 100 oz  or ounces + {(542)OI for the front month  minus the number of  notices served upon today (4) x 100 oz which equals 298,100 oz standing in this  active delivery month of OCTOBER  (9.271 tonnes).
WE GAINED 71 CONTRACTS OR AN ADDITIONAL 7100 OZ WILL  STAND FOR DELIVERY
 IT WAS OBVIOUS THAT  THERE WAS HARDLY ANY  PHYSICAL GOLD TO DELIVER UPON LONGS IN SEPTEMBER AND THIS CONTINUES ON IN OCTOBER.   THE CROOKS USE THE EFP’S TO TRANSFER THEIR OBLIGATION TO ANOTHER EXCHANGE. THIS IS WHY ANOTHER 5400 EFP’S WERE ISSUED FOR OCTOBER GOLD ON FIRST DAY NOTICE AND IT ALSO EXPLAINS THE LACK OF DELIVERY NOTICES IN THE EARLY PART OF THIS DELIVERY ACTIVE MONTH. QUEUE JUMPING IS ANOTHER INDICATOR OF PHYSICAL SCARCITY AND THIS EVENT HAPPENED AGAIN THIS MORNING.
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Total dealer inventory 598,132.542 or 18.604 tonnes  (dealer gold continues to disappear)
Total gold inventory (dealer and customer) = 8,771,375.170 or 272.82 tonnes 
 
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  80 NET TONNES HAS LEFT THE COMEX.
end
And now for silver
AND NOW THE OCTOBER DELIVERY MONTH
OCTOBER INITIAL standings
 Oct 20/ 2017
Silver Ounces
Withdrawals from Dealers Inventory  n/a
Withdrawals from Customer Inventory
 n/a oz
Deposits to the Dealer Inventory
 n/a oz
Deposits to the Customer Inventory 
 n/a
No of oz served today (contracts)
5CONTRACT(S)
(25,000,OZ)
No of oz to be served (notices)
219contracts
(1,095,000 oz)
Total monthly oz silver served (contracts) 784contracts

(3,920,000 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    xx oz
today, we had  xxx deposit(s) into the dealer account:
total dealer deposit: xxx   oz
we had xxx dealer withdrawals:
total dealer withdrawals: xxx oz
we had  xx customer withdrawal(s):
TOTAL CUSTOMER WITHDRAWALS: xx  oz
We had xx 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: 600,627.490  oz
 
 we had 0 adjustment(s)
The total number of notices filed today for the OCTOBER. contract month is represented by 5 contracts FOR 25,000 oz. To calculate the number of silver ounces that will stand for delivery in OCTOBER., we take the total number of notices filed for the month so far at 784x 5,000 oz  = 3,920,0000 oz to which we add the difference between the open interest for the front month of OCT. (222) and the number of notices served upon today (5x 5000 oz) equals the number of ounces standing.
 

 

.
 
Thus the INITIAL standings for silver for the OCTOBER contract month:  784 (notices served so far)x 5000 oz  + OI for front month of OCTOBER(222) -number of notices served upon today (5)x 5000 oz  equals  4,990,000 oz  of silver standing for the OCTOBER contract month. This is HUGE for this NON active delivery month. THE INCREASE IN TOTAL OZ STANDING FOR SILVER CONTINUES TO ADVANCE
 
WE GAINED 3  CONTRACTS OR  AN ADDITIONAL 15,000 OZ WILL  STAND FOR DELIVERY.
 ESTIMATED VOLUME FOR TODAY:   97,556
CONFIRMED VOLUME FOR YESTERDAY:  113,302 CONTRACTS
 
 
Total dealer silver:  39.345 million (close to record low inventory  
Total number of dealer and customer silver:   220.100 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

will update later tonight

1. Central Fund of Canada: traded at Negative 2.2 percent to NAV usa funds and Negative 2.1% to NAV for Cdn funds!!!! 
Percentage of fund in gold 62.4%
Percentage of fund in silver:37.7%
cash .-0.1%( Oct20/2017) 
2. Sprott silver fund (PSLV): STOCK   FALLS TO -0.73% (Oct 20/2017) 
3. Sprott gold fund (PHYS): premium to NAV RISES TO -0.59% to NAV  (Oct 1892017 )
Note: Sprott silver trust back  into NEGATIVE territory at -0.73%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.59%/Central fund of Canada’s is still in jail  but being rescued by Sprott.

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

(courtesy Sprott/GATA)

Sprott Inc. to take control of rival gold holder Central Fund of Canada

by THE CANADIAN PRESS

Posted Oct 2, 2017 8:43 am PDT

Last Updated Oct 2, 2017 at 9:20 am PDT

TORONTO – Sprott Inc. (TSX:SII) says it has struck a deal to take control of rival gold-holding firm Central Fund of Canada Ltd. (TSX:CEF.A) after a protracted takeover effort.

Toronto-based Sprott said Monday it will pay $120 million in cash and stock for Central Fund of Canada Ltd.’s common shares and for the right to administer and manage the fund’s assets.

The deal, which requires approval from Central Fund shareholders, would see its class A shareholders transferred to a new Sprott Physical Gold and Silver Trust.

Sprott says the deal would add $4.3 billion to its assets under management, which are focused largely on holding physical precious metals on behalf of clients, and 90,000 investors to its client base.

In March, Sprott tried to go through the Court of Queen’s Bench of Alberta to allow Central Fund’s class A shareholders to swap their shares to Sprott after the family that controls Central Fund rebuffed their attempt to make a deal.

Last year Sprott took over Central GoldTrust, a similar fund controlled by the same family, after securing support from more than 96 per cent of shareholder votes cast.

END

And now the Gold inventory at the GLD

oCT 19/NO CHANGE IN GOLD INVENTORY/INVENTORY RESTS AT 853.13 TONNES

Oct 18 /no change in gold inventory at the GLD/ inventory rests at 853.13 tonnes

Oct 17./no change in gold inventory at the GLD/inventory rests at 853.13 tonnes

Oct 16/A HUGE WITHDRAWAL OF  5.32 TONNES FROM THE GLD/INVENTORY RESTS AT 853.13 TONNES

0CT 13/ NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 858.45 TONNES

Oct 12/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 858.45 TONNES

Oct 10/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 858.45 TONNES

Oct 9/ANOTHER DEPOSIT OF 4.43 TONNES INTO GLD/INVENTORY RESTS AT 858.45 TONNES

Oct 6/A DEPOSIT OF 2.96 TONNES OF GOLD INVENTORY INTO THE GLD/TONIGHT IT RESTS AT 854.02 TONNES

Oct 5/A LOSS OF 3.24 TONNES OF GOLD INVENTORY FROM THE GLD/INVENTORY RESTS AT 851.06 TONNES

Oct 4/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 854.30 TONNES

oCT 3/ A HUGE WITHDRAWAL OF 10.35 TONNES FROM THE GLD/INVENTORY RESTS AT  854.30 TONNES

Oct 2/STRANGE/WITH GOLD’S CONTINUAL WHACKING WE GOT A BIG FAT ZERO OZ LEAVING THE GLD/INVENTORY RESTS AT 864.65 TONNES

SEPTEMBER 29/no changes in gold inventory at the GLD/Inventor rests at 864.65 tonnes

Sept 28/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 864.65 TONNES

Sept 27/WOW!! WITH GOLD DOWN $13.25, WE HAD A HUGE 8.57 TONNES OF GOLD ADDED TO THE GLD/

Sept 26/no changes in gold inventory at the GLD/Inventory rests at 856.08 tonnes

Sept 25./Another big deposit of 3.84 tonnes into GLD/Inventory rests tonight at 856.08 tonnes

Sept 22/with gold up only 1 dollar on the day we had a massive 6.21 tonnes of gold added to the GLD/.this is a good sign that gold will advance nicely this coming week.

Sept 21/no change in gold inventory tonight/inventory rests at 846.03 tonnes

Sept 20/no change in gold inventory tonight/inventory rests at 846.03 tonnes

Sept 19/another deposit of 2.07 tonnes of gold into the GLD/inventory rests at 846.03 tonnes

Sept 18/a huge 5.32 tonnes of gold deposit into the GLD despite gold’s whack today/inventory rests at 843.96 tonnes

Sept 15./strange!!no change in GLD after the whacking of gold/inventory remains at 838.64 tonnes

Sept 14./no changes at the GLD/inventory rests at 838.64 tonnes

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

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Oct 20/2017/ Inventory rests tonight at 853.13 tonnes
*IN LAST 254 TRADING DAYS: 87.82 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 189 TRADING DAYS: A NET  69,46 TONNES HAVE NOW BEEN ADDED INTO  GLD INVENTORY.
*FROM FEB 1/2017: A NET  38,35 TONNES HAVE BEEN ADDED.

end

Now the SLV Inventory

oCT 19/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 321.327 MILLION OZ

Oct 18 no change in silver inventory at the SLV/inventory rest at 322.271 million oz

Oct 17/ A MONSTROUS WITHDRAWAL OF 3.494 MILLION OZ FROM THE SLV/INVENTORY RESTS AT 322.271 MILLION OZ

Oct 16/  NO CHANGES IN SILVER INVENTORY AT THE SLV.INVENTORY RESTS AT 325.765 MILLION OZ

oCT 13/ NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 325.765 MILLION OZ

Oct 12/THE LAST TWO DAYS WE LOST 1.113 MILLION OZ FROM THE SLV/INVENTORY RESTS AT 325.765 MILLION OZ

Oct 10/NO CHANGE IN INVENTORY AT THE SLV/INVENTORY RESTS AT 326.898 MILLION OZ/

Oct 9/A HUGE DEPOSIT OF 1.227 MILLION OZ INTO THE INVENTORY OF THE SLV/INVENTORY RESTS AT 326.898 MILLION OZ

Oct 6/NO CHANGE IN SILVER INVENTORY/ INVENTORY RESTS AT 325.671 MILLON OZ

Oct 5/ANOTHER WITHDRAWAL OF 944,000 OZ FROM THE SLV/INVENTORY RESTS AT 325.671 MILLION OZ

OCT 4/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 326.615 MILLION Z

Oct 3/A TINY WITHDRAWAL OF 143,000 FROM THE SLV FOR FEES/INVENTORY RESTS AT 326.615  MILLION OZ

Oct 2/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 326,757 MILLION OZ

SEPTEMBER 29/no changes in silver inventory at the SLV/inventory rests at 326.757 million oz/

Sept 28/NO CHANGES IN SILVER INVENTORY/INVENTORY RESTS AT 326.757 MILLION OZ/

Sept 27/STRANGE!! SILVER IS HIT FOR 24 CENTS YESTERDAY AND. 9 CENTS TODAY AND YET NO CHANGE IN SILVER INVENTORY/INVENTORY RESTS AT 326.757 MILLION OZ

Sept 26./no change in silver inventory at the SLV/.inventory rests at 326.757 million oz

Sept 25./ a big deposit of 1.842 million oz into the SLV/inventory rests at 326.757 million oz/

Sept 22/no change in silver inventory at the SLV/Inventory rests at 324.915 million oz/

Sept 21/no change in silver inventory at the SLV/Inventory rests at 324.915 million oz

Sept 20/no changes in silver inventory/Inventory remains at 324.915 million oz

Sept 19/strange!! another withdrawal of 1.134 million oz despite the rise in silver/inventory rests at 324.915 million oz

Sept 18/a withdrawal of 1.039 million oz from the SLV/Inventory rests at 326.049 million oz

Sept 15./no change in silver inventory at the SLV/Inventory rests at 327.088 million oz/

Sept 14/no change in silver inventory at the SLV/Inventory rests at 327.088 million oz/

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/

Oct 19/2017:

Inventory 321.327 million oz
end
  • 6 Month MM GOFO

    Indicative gold forward offer rate for a 6 month duration

    + 1.39%
  • 12 Month MM GOFO
    + 1.59%
  • 30 day trend

end

 

Major gold/silver trading/commentaries for FRIDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

 

ScotiaMocatta Put For Sale After Multibillion Money-Laundering Scandal

The world’s oldest gold trader is for sale after a massive money laundering scandal may have terminally crippled one of the most iconic names in the business.
Canada’s Bank of Nova Scotia is exploring options for its gold business ScotiaMocatta, the Financial Times reported, which include a possible sale of Canada’s most popular precious metals trader. Scotiabank made a decision to sell ScotiaMocatta following a massive money laundering scandal centered on a U.S. refinery that involved smuggled gold from South America. The ScotiaMocatta business, a mainstay in PM trading, is one of London’s main gold trading banks and is being sold by JPMorgan.
According to the FT sources, ScotiaMocatta’s future had been underway for several months, with ScotiaBank allegedly seeking a buyer for up to a year and was likely to shrink the business if a sale is not completed, although according to the article Chinese buyers – the world’s dumbest money these days – are rumoured to be the key targets of the sale.
While gold trading has been in a cyclical decline in recent years, the “straw that broke the camel’s back” in prompting the sale was Scotiabank’s lending to Elemetal, a precious metals refinery in Dallas. Scotiabank was one of its biggest lenders, they said. The problem emerged in March, when US prosecutors accused workers at a subsidiary of Elemetal, NTR Metals in Florida, of a money laundering scheme using “billions of dollars of criminally derived gold” mostly from Peru.
Here the story take a turn into a slightly surreal detour:

NTR imported more than $3.6bn of gold from Latin America between 2012 and 2015, the court documents allege. Two of the accused, Samer Barrage and Juan Granda, pleaded guilty last month to a charge of money laundering in plea deals.

After the story came to light in March, Elemetal was kicked off the London Bullion Market Association’s “Good Delivery List” of gold refiners;
This was an almost instant death sentence for the company as buyers will usually only buy gold from a refiner on the list. Indeed, in the same month, New York’s Comex futures exchange said it was no longer taking gold from Elemetal for delivery against futures contracts in the world’s biggest gold futures market.
And this is where the scourge of gold rehypothecation emerged, as in the scandal surrounding Elemetal, it became impossible for holders of Elemetal gold to sell the gold bars on, leaving them sitting in bank vaults, according to traders quoted by the FT. Buyers are reluctant to take the gold, given the investigations.
This means that hundreds of millions in loans made to Elemetal by ScotiaMocatta are suddenly stuck in limbo. It also means that one of five bullion banks that settle gold trades in the London market, the world’s largest, has effectively been blackballed. It was built on the 1997 purchase by Scotiabank of Mocatta Bullion, which traces its roots back to 1671. And with Mocatta crippled, Scotiabank, which has the biggest foreign presence of any Canadian bank, is focusing its international strategy on the Pacific Alliance, a Latin American trade bloc comprising Mexico, Peru, Chile and Colombia. It will also hope to find a willing Chinese buyer for the gold trading operation.
Mocatta’s exit will be good news for HSBC and JPMorgan, which dominate the London market; their large balance sheets enable them to provide credit to clients and refiners around the world. Additionally, and unlike Scotiabank, they also have vaults in London. Gold trading in London is estimated to be worth more than $5tn a year, although as the FT notes, there are no precise figures on how much gold is traded there every day.


Your early FRIDAY morning currency, Asian stock market results,  important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight/9 AM EST

 
 i) Chinese yuan vs USA dollar/CLOSED UP AT 6.6180/shanghai bourse CLOSED UP AT 8.48POINTS .25%   / HANG SANG CLOSED UP 328.15 POINTS OR 1.17% 

2. Nikkei closed UP 9.12 POINTS OR .04%     /USA: YEN FALLS TO 113.22

3. Europe stocks OPENED IN THE GREEN ( /USA dollar index RISES TO  93.39/Euro DOWN to 1.1817

3b Japan 10 year bond yield: RISES  TO  -+.075/ GOVERNMENT INTERVENTION    !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 112.44/ 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::  50.91and Brent: 57.05

3f Gold DOWN/Yen DOWN

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

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

3h Oil DOWN for WTI and DOWN or Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO  +.44%/Italian 10 yr bond yield UP to 2.034%  /SPAIN 10 YR BOND YIELD UP TO 1.648%  

3j Greek 10 year bond yield RISES TO  : 5.58???  

3k Gold at $1283.05silver at:17.17:  6 am est)   SILVER NEXT RESISTANCE LEVEL AT $18.50 

3l USA vs Russian rouble; (Russian rouble DOWN 17/100 in  roubles/dollar) 57.48

3m oil into the 50 dollar handle for WTI and 57 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 113.22 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  0.9816as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1590 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  +0.44%

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 2.363% early this morning. Thirty year rate  at 2.877% /

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

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

Stocks Hit New Record Highs, Dollar Jumps On Senate Vote; Japan Has Longest Winning Streak In History

Global stocks hit new all time highs overnight, with US stock-index futures, Asian and European stocks all rising overnight after the Senate adopted a fiscal 2018 budget resolution, paving the way for Trump’s $1.5 trillion in tax cuts, while news that “dove” Jay Powell may be the next Fed chair added to the risk-on sentiment.
Among key macro trades, the USD rallied on optimism Trump tax cuts are a step closer, with USD/JPY close to 113.50 and USD/CHF back above 200DMA. USTs push through overnight lows dragging bunds and gilts lower; short Sterling strip initially bid higher after dovish Cunliffe comments before unwinding due to steepening in Eurodollars. European equity markets opened higher but ground back towards flat, as mining stocks and banks  outperform. The euro slipped as investors awaited the next move in Spain’s Catalan crisis, and the yen fell ahead of Japan’s election. Gold dropped along with European bonds as safe havens lost favor. WTI crude fell as Iraq sought to restore flows from fields in a disputed region. Spanish banks Sabadell and Caixabank weigh on IBEX after Catalan separatists target them for deposit withdrawals; not reflected in Spanish bonds, however, which actually outperform. ZAR weakest in EMFX due to speculation Deputy PM could be fired; crude futures pressured by the strong USD.
In the top overnight event, the Senate voted to adopt budget resolution through 51-49 vote, which paves the way for a tax overhaul and shields a future tax reform bill from a Democrat filibuster. To be sure, this is only the first step in a process that only now becomes fraught with disagreement among republicans. Sure enough, “the budget still has to pass the House, but near-term, it should be supportive for the dollar,” said Shinichiro Kadota, a senior foreign-exchange strategist at Barclays Securities Japan Ltd. in Tokyo. “Senate passage of the budget was a step required for budget reconciliation to advance tax reform.”

There were also reports that US President Trump is leaning towards Powell for Fed Chair. However, it was later reported that US President Trump advisers are said to be leaning towards Taylor or Powell as the next Fed Chair and added that the Fed chair role was down to the aforementioned 2 candidates, although according to online betting site Predicit the contest is now over.

Investors continue to eye political developments in Spain, the decision on a Federal Reserve chair that may sway the path of U.S. interest rates, and Brexit negotiations, suggesting caution as markets head into the weekend. But Thursday’s bout of volatility dissipated quickly as tax-cut optimism took hold. The CBOE Volatility Index, which surged as much as 17 percent on Thursday, actually ended the day in the red and fell further on Friday. Spain’s IBEX was unchanged after falling -0.2% even as the Stoxx 600 gained as officials in Madrid are finalizing plans for taking control of Catalonia.  CaixaBank down 0.4%, Banco Sabadell were down 1.6%; separatist campaign group Catalan National Assembly called on supporters to pull cash from the two banks to protest at their decision to shift their legal domiciles out of the region.

end

3. ASIAN AFFAIRS

i)Late THURSDAY night/FRIDAY morning: Shanghai closed UP 8.48 points or .25% /Hang Sang CLOSED UP 328.15 pts or 1.17% / The Nikkei closed UP 9.12 POINTS OR .04/Australia’s all ordinaires CLOSED UP 0.15%/Chinese yuan (ONSHORE) closed UP  at 6.618/Oil DOWN to 50.91 dollars per barrel for WTI and 57.05 for Brent. Stocks in Europe OPENED IN THE GREEN  .  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.6180. OFFSHORE YUAN CLOSED STRONGER TO THE ONSHORE YUAN AT 6.61790 AND //ONSHORE YUAN  STRONGER AGAINST THE DOLLAR/OFF SHORE STRONGER TO THE DOLLLAR/. THE DOLLAR (INDEX) IS STRONGER AGAINST ALL MAJOR CURRENCIES. CHINA IS HAPPY TODAY.

3a)THAILAND/SOUTH KOREA/NORTH KOREA

NORTH KOREA/USA

b) REPORT ON JAPAN

.

3. CHINA REPORT

You Think You’re Free, Catalonia? Think Again, Spain Says

by Sprott Money
Oct 20, 2017 10:21 AM

You Think You’re Free? Think Again, Spain Says, Begins Preparations to Crack Down on Catalan
Written by Nathan McDonald, Sprott Money News

Governments all over the world need control: they need control over “their” people, they need control over “their” money supply, and through this control they can grow their power and ability to dictate our everyday lives.

Everyone is born under a system of control in today’s modern world. Arguably, for most of history, it has been this way. Sure, we are given freedoms as long as we play within our specifically defined set of rules, but just try to break these rules and watch how quickly the hammer comes down on top of your head.

This is exactly what we have witnessed on October 1st, within the Catalan region of Spain, who voted OVERWHELMINGLY, 92.1% in fact, to exit Spain and become independent. This was a nonviolent, democratic process, by a set of people of a specific region, yet they have learned the hard way that their destiny is far from their own.

The government of Spain looks at this prosperous region as theirs and the people that make up this area are their cash cows – cash cows that are attempting to hop the fence and drift off the farm. This cannot and will not be allowed.

The violent crackdown that we witnessed on October 1st showed the government of Spain’s hand, but they are far from the only government that would act in this way. The global elites of both the West and the East all would act in a similar manner.

Prime Minister Mariano Rajoy is now taking additional steps, invoking Article 155 of their Constitution, which gives them the right to “restore the legality” of the semi-autonomous region. Which I’m sure as you can guess, means forcefully removing the “renegade” government of Catalonia by any means necessary.

Still, Catalonia’s President Carles Puigdemont is not backing down in the face of these threats and hopes that the region can separate peacefully – a truly hopeful wish in my opinion.

This has led to civil society organizations within Catalonia to call for retaliation against the government of Spain, requesting that all citizens within the region initiate a bank run by withdrawing their funds all at once, together.

If you think this call to action is to be taken lightly, then you are forgetting one of the key elements that give the ruling class their power: their control over the fiat money supply and the banking system that keeps it going.

The citizens of Catalonia are going to learn the hard way just how little money the modern day banking system keeps in physical reserve. Quickly the vaults and ATMs will run dry – and then what?

I for one am hopeful that this situation will resolve itself peacefully and the people of Catalonia will be set free, as they have democratically requested, and that this will be a bright shining example of liberty and free will in a modern time. Sadly, I highly doubt that is what is going to occur.

Unless the government of Catalonia steps down on their own accord, then you can expect to see violence and blood in the streets. This action cannot and will not be tolerated by the elites of the world, lest the rest of us peasants get any silly ideas in our heads.

5. RUSSIA AND MIDDLE EASTERN AFFAIRS

6 .GLOBAL ISSUES

Cdn dollar plummets after a poor retail sales report/retail sales fall .7% month over month

(courtesy zerohedge)

Loonie Tumbles After Canadian Retail Sales Suffer Biggest August Slump Ever

Blame the storms… oh wait!
Despite rate-hikes, exuberant discussions from BoC speakers about the economy, and ‘hope’ – a lot of ‘hope’, Canadian retail sales plunged in August…

This is the biggest drop in retail sales since Dec 2015 and is the biggest August drop on record.
And the reaction in the Loonie is clear…

As hope for more rate hikes fades.
Though we are sure this is merely transitory.

7.OIL ISSUES

8. EMERGING MARKET

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

Euro/USA   1.1817 DOWN.0031/ REACTING TO SPAIN VS CATALONIA/REACTING TO  +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ 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  ALL GREEN   

USA/JAPAN YEN 113.22 DOWN 0.530(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 1.3181 UP .0031 (Brexit  March 29/ 2017/ARTICLE 50 SIGNED

THERESA MAY FORMS A NEW GOVERNMENT/STARTS BREXIT TALKS/MAY IN TROUBLE WITH HER OWN PARTY/

USA/CAN 1.2547 UP .0071(CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA)

Early THIS FRIDAY morning in Europe, the Euro FELL by 31 basis points, trading now ABOVE the important 1.08 level  RISING to 1.1823; / Last night the Shanghai composite CLOSED UP 8.48 POINTS OR .25%      / Hang Sang  CLOSED UP 328.15 PTS OR 1.17%   /AUSTRALIA  CLOSED UP 0.15% / EUROPEAN BOURSES OPENED GREEN 

The NIKKEI: this FRIDAY morning CLOSED UP 9.12 POINTS OR .04% 

Trading from Europe and Asia:
1. Europe stocks  OPENED GREEN \

2/ CHINESE BOURSES / : Hang Sang CLOSED UP 328.15 POINTS OR 1.17%  / SHANGHAI CLOSED UP 8.48 POINTS OR .25%    /Australia BOURSE CLOSED UP 0.08% /Nikkei (Japan)CLOSED UP 9.12 POINTS OR .04%    / INDIA’S SENSEX IN THE GREEN

Gold very early morning trading: 1284.00

silver:$17.19

Early FRIDAY morning USA 10 year bond yield:  2.363% !!! UP 5 IN POINTS from THURSDAY night in basis points and it is trading JUST BELOW resistance at 2.27-2.32%. (POLICY FED ERROR)

The 30 yr bond yield  2.877 UP 5 IN BASIS POINTS  from THURSDAY night. (POLICY FED ERROR)

USA dollar index early FRIDAY morning: 93.39 UP 12 CENT(S) from YESTERDAY’s close. 

This ends early morning numbers  FRIDAY MORNING

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And now your closing FRIDAY NUMBERS  \4 PM

Portuguese 10 year bond yield: 2.309% down 4 in basis point(s) yield from THURSDAY 

JAPANESE BOND YIELD: +.075%  UP 1  in   basis point yield from THURSDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.663% UP 23IN basis point yield from THURSDAY 

ITALIAN 10 YR BOND YIELD: 2.043 UP 2 POINTS  in basis point yield from THURSDAY 

the Italian 10 yr bond yield is trading 37 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: +.452% UP 6 IN  BASIS POINTS ON THE DAY

END

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IMPORTANT CURRENCY CLOSES FOR FRIDAY 

Closing currency crosses for FRIDAY night/USA DOLLAR INDEX/USA 10 YR BOND YIELD/3:30 PM

Euro/USA 1.1766 down 81 (Euro down 81 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 113.49 up 0.817(Yen down 82  basis points/ 

Great Britain/USA 1.3184 up  0.0034( POUND up 34 BASIS POINTS)

USA/Canada 1.2619 UP.0138 Canadian dollar DOWN 138 basis points AS OIL ROSE TO $51.47

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This afternoon, the Euro was DOWN 81 to trade at 1.1766

The Yen FELL to 113.49for a LOSS of 81  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 ROSE BY 34 basis points, trading at 1.3184/ 

The Canadian dollar FELL by 138 basis points to 1.2619  WITH WTI OIL RISING TO :  $51.47

The USA/Yuan closed AT 6.620
the 10 yr Japanese bond yield closed at +.067% DOWN 7/10 IN  BASIS POINTS / yield/ 

Your closing 10 yr USA bond yield DOWN 2  IN basis points from THURSDAY at 2.320% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic  USA 30 yr bond yield: 2.83411 DOWN 2 in basis points on the day /

Your closing USA dollar index, 93.20  DOWN 16 CENT(S)  ON THE DAY/5.00 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 FRIDAY: 1:00 PM EST

London:  CLOSED UP  0.19 POINTS OR 0.00%
German Dax :CLOSED UP 1.18 POINTS OR .01%
Paris Cac  CLOSED UP 4.09 POINTS OR 0.08% 
Spain IBEX CLOSED UP 25.20POINTS OR 0.25%

Italian MIB: CLOSED UP 213.64 POINTS OR 0.97% 

The Dow closed UP 165.59 POINTS OR .71%

NASDAQ WAS closed UP 23.99 PTS OR .36%  4.00 PM EST

WTI Oil price;   51.47   3:00 pm; 

Brent Oil: 57.82  1:00 EST

USA /RUSSIAN ROUBLE CROSS:  57.34 DOWN 11/100 ROUBLES/DOLLAR (ROUBLE HIGHER BY 11 BASIS PTS)

TODAY THE GERMAN YIELD RISES TO  +.452%  FOR THE 10 YR BOND  5.00PM 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:$51.47

BRENT: $57.82

USA 10 YR BOND YIELD: 2.385%  (ANYTHING HIGHER THAN 2.70% BLOWS UP THE GLOBE)

USA 30 YR BOND YIELD: 2.892% 

EURO/USA DOLLAR CROSS:  1.1766 DOWN .0081

USA/JAPANESE YEN:113.49   DOWN  0.812

USA DOLLAR INDEX: 93.69DOWN 43 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.3184 : UP 34 POINTS FROM LAST NIGHT  

Canadian dollar: 1.2619 DOWN 138 BASIS pts 

German 10 yr bond yield at 5 pm: +0.452%

END

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

TRADING IN GRAPH FORM FOR THE DAY

GE-Dip-Buying-Panic Sends Dow To ‘Most Overbought’ In 62 Years, Yield Curve Collapse Continues

http://www.zerohedge.com/news/2017-10-20/ge-dip-buying-panic-sends-dow-most-overbought-62-years-yield-curve-collapse-continue?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

END

The Senate just passed their 2018 budget which paves the way for a 1.5 trillion spending bonanza and is the preliminary step in their attempt for tax reform/tax cuts.  This sends the dollar higher. The Fed is not happy that they will have to deal with increased spending while they attempt to raise rates.

(courtesy zero hedge)

Senate Passes 2018 Budget Paving Way For $1.5 Trillion In Tax Cuts, Sending Yields, Dollar Sharply Higher

Senate republicans took a major, if relatively easy, step toward passing Trump’s tax plan on Thursday night with the critical passage of a budget blueprint that would protect a $1.5 trillion tax cut from a Democratic filibuster. Senators narrowly voted 51-49 to pass the fiscal year 2018 budget after a several hour-long marathon on the Senate floor. The budget resolution could also pave the way for opening up the Arctic National Wildlife Refuge in Alaska to oil exploration by ensuring that drilling legislation can pass with only Republican votes according to the NYT.
With a 52-seat majority, Mitch McConnell had a narrow path to getting the 50 votes needed to clear the budget through the upper chamber. But GOP leadership caught a break this week when Sen. John McCain, a holdout over defense spending, announced he would vote yes, and Sen. Thad Cochran, recovering from health issues, returned early to Washington.
The budget’s passage could keep Republicans on track to pass a tax package late this year or early in 2018. That said, there are still plenty of possible complications, not least of all bickering within the GOP over the final shape of the tax package – where the fate of state and local tax exemptions has still to be decided – as the following Goldman flowchart shows: the steps that were successfully passed tonight are shown in green.

The House could pick up the Senate-passed budget as early as next week and give final approval to parliamentary language protecting the Republicans’ coveted tax effort. If House Republicans instead insist on negotiating a compromise that melds the Senate and House budget plans, tax legislation could be delayed.
“Passing this budget is critical to getting tax reform done, so we can strengthen our economy after years of stagnation under the previous administration,” said Senate Majority Leader Mitch McConnell (R-Ky.).

The Senate gave its approval to the budget blueprint on Thursday night after considering a flurry of amendments, a tedious process that gives the minority party an opportunity to force the majority to endure politically difficult votes. One Democratic amendment that was rejected sought to stop tax cuts from going to the top 1 percent; another would have restored cuts to Medicare.
The Senate approved the budget after the previously discussed so-called vote-a-rama, a legislative whirlwind in which amendments are considered one after another
Giving tonight events an aura of fatalistic determinism, Senator Lindsey Graham, and a member of the Budget Committee, said “this is the last, best chance we will have to cut taxes,” and warned that the consequences would be ruinous if the party failed. “That will be the end of us as a party,” he said, “because if you’re a Republican and you don’t want to simplify the tax code and cut taxes, what good are you to anybody?”
Where things get laughable is when one considers the context of what just happened: In Congress, the annual budget resolution provides an outline of federal spending and revenues. The Senate’s blueprint, for the 2018 fiscal year that began Oct. 1, claims to achieve a balanced budget within a decade, assuming greater economic growth and using an accounting method that excludes Social Security. In order to erase projected deficits, it calls for trillions of dollars in spending cuts over the coming decade.But the cuts exist only on paper, without legislation to achieve them.
And as the GOP predicts that by 2028 US government spending will equal revenues, here is what will really happen:
Meanwhile, as Republicans played with excel’s “goalseek” function, Democrats sounded the alarm, warning that the aspirational cuts in the budget plan called for slicing more than $1 trillion from Medicaid and about $470 billion from Medicare over a decade. Unfortunately for Democrats, they have exactly zero say in the matter: Though Democrats have pleaded to have more say in the tax overhaul, parliamentary language in the budget resolution would allow Republicans to pass a tax bill without any cooperation from the minority party.
“Passing this budget is not a requirement for passing tax reform,” said Senator Gary Peters, Democrat of Michigan. “Passing this budget is only a requirement to pass a tax bill with as few votes as possible, without input or buy-in from members of the minority.”
For Republicans, the budget debate provided a moment to showcase their main goal in the coming months, which according to the NYT is approving an overhaul of the tax code for the first time in decades, which they hope will lead to greater economic growth. But before they can move ahead with a tax bill, the House and Senate need to agree on the same budget resolution. The House approved its budget resolution, which had long been stalled, on Oct. 5. The House budget also lays the groundwork for a tax bill, but, unlike the Senate’s approach, it calls for the legislation to not add to the deficit.
The House budget resolution also seeks more concrete action when it comes to cutting spending, instructing committees to come up with legislation that would produce at least about $200 billion in savings.
However, according to The Hill, a House GOP source says the amendment seems sufficient to avoid a conference committee between the two chambers, and allow the House to simply pass the Senate resolution.
Ultimately, however, the only reason why the vote passed so easily is because as the Hill explained, it doesn’t matter, and was merely viewed as a mere vehicle for passing tax reform
“This is the biggest hoax cast upon the American people ever that this budget process even exists. The only thing about this that matters is in preparation for tax reform,” said Sen. Bob Corker (R-Tenn.), who voted for the budget.  Corker noted bluntly that he believes the budget doesn’t have a real-world impact and if he was chairman of the Budget Committee he would disband it. When a staffer told him he was about to miss an amendment vote, he shot back: “yeah, on a vote that doesn’t matter.”
McCain, explaining why he would support the budget, added: “At the end of the day, we all know that the Senate budget resolution will not impact final appropriations.”
Then again, all of these nuances were lost on the shotgun headline scanning algos, which read that Trump’s tax plan is one step closer to passage and sent both the USDJPY…

… and 10Y yields surging…

With gold lower…

With Dow Futs up over 100 points…

… and the Fed cursing their fate, because as Dudley explained yesterday, the last thing the feed needs right now as it is desperate to avoid tightening fast, is a burst of wage inflation, something which Trump’s tax proposal, if it passes, will promptly lead to, crushing the Fed’s carefully laid plan to take years and years in unwinding it balance sheet and rising rates.

END

Continuing with our major story last night, the Senate is now seeking to interview the FBI informant (code named Confidential one) as they are no doubt alarmed that the FBI and the Justice Dept. blocked his testimony and allowed huge bribes to be paid to the Clintons while the FBI  and Justice gleefully entertained this criminal activity.

(courtesy zerohedge)

Senate Seeks To Interview FBI Informant Linking Russian Nuclear Bribery Case To Clinton Foundation

Yesterday we wrote about the FBI’s undercover informant in the Russian nuclear bribery scandal who tried to come forward with his story last year but was silenced after being “threatened” by the Obama administration (full summary at the bottom of this post).
Now it seems as though the Senate Judiciary Committee, chaired by Senator Chuck Grassley, has finally taken an interest in what “Confidential Source 1” might have to say about Russians, bribes, the Clinton Foundation and the Obama administration’s efforts to silence him.  According to Circa, Chuck Grassley has sent a formal letter to the informant’s attorney requesting that her client testify before the Senate Judiciary Committee.

Senate Judiciary Chairman Charles Grassley asked the attorney of a former FBI informant Wednesday to allow her client to testify before his committee regarding the FBI’s investigation regarding kickbacks and bribery by the Russian state controlled nuclear company that was approved to purchase twenty percent of United States uranium supply in 2010, Circa has learned.

In a formal letter, Grassley, an Iowa Republican, asked Victoria Toensing, the lawyer representing the former FBI informant, to allow her client, who says he worked as a voluntary informant for the FBI, to be allowed to testify about the “crucial” eyewitness testimony he provided to the FBI regarding members of the Russian subsidiary and other connected players from 2009 until the FBI’s prosecution of the defendants in 2014.

“Reporting indicates that “the informant’s work was crucial to the government’s ability to crack a multimillion dollar racketeering scheme by Russian nuclear officials on U.S. soil” and that the scheme involved “bribery, kickbacks, money laundering, and extortion,” Grassley states in his letter. “Further, the reporting indicates that your client can testify that ‘FBI agents made comments to him suggesting political pressure was exerted during the Justice Department probe’ and ‘that there was specific evidence that could have scuttled approval of the Uranium One deal.’ It appears that your client possesses unique information about the Uranium One/Rosatom transaction and how the Justice Department handled the criminal investigation into the Russian criminal conspiracy.”

Grassley added that “such information is critical to the Committee’s oversight of the Justice Department and its ongoing inquiry into the manner in which CFIUS approved the transaction. Accordingly, the Committee requests to interview your client.”

* * *
For those who missed it, below is further background on “Confidential Source 1” from our post yesterday.
While the mainstream media has largely ignored it, the scandal surrounding Russian efforts to acquire 20% of America’s uranium reserves, a deal which was ultimately approved by the Obama administration, and more specifically the Committee on Foreign Investment in the United States (CFIUS) which included Hillary Clinton and Eric Holder, is becoming more problematic for Democrats by the hour.
As The Hill pointed out earlier this morning, the latest development in this sordid tale revolves around a man that the FBI used as an informant back in 2009 and beyond to build a case against a Russian perpetrator who ultimately admitted to bribery, extortion and money laundering.  The informant, who is so far only known as “Confidential Source 1,” says that when he attempted to come forward last year with information that linked the Clinton Foundation directly to the scandal he was promptly silenced by the FBI and the Obama administration.

Working as a confidential witness, the businessman made kickback payments to the Russians with the approval of his FBI handlers and gathered other evidence, the records show.

Sources told The Hill the informant’s work was crucial to the government’s ability to crack a multimillion dollar racketeering scheme by Russian nuclear officials on U.S. soil that involved bribery, kickbacks, money laundering and extortion. In the end, the main Russian executive sent to the U.S. to expand Russian President Vladimir Putin’s nuclear business, an executive of an American trucking firm and a Russian financier from New Jersey pled guilty to various crimes in a case that started in 2009 and ended in late 2015.

Toensing added her client has had contact from multiple congressional committees seeking information about what he witnessed inside the Russian nuclear industry and has been unable to provide that information because of the NDA.

“He can’t disclose anything that he came upon in the course of his work,” she said.

The information the client possesses includes specific allegations that Russian executives made to him about how they facilitated the Obama administration’s 2010 approval of the Uranium One deal and sent millions of dollars in Russian nuclear funds to the U.S. to an entity assisting Bill Clinton’s foundation. At the time, Hillary Clinton was serving as secretary of State on the government panel that approved the deal, the lawyer said.

It has been previously reported that Bill Clinton accepted $500,000 in Russian speaking fees in 2010 and collected millions more in donations for his foundation from parties with a stake in the Uranium One deal, transactions that both the Clintons and the Obama administration denied had any influence on the approval.

In the midst of the new discoveries revealed yesterday about the Uranium One case (see: FBI Uncovered Russian Bribery Plot Before Obama Approved Uranium One Deal, Netting Clintons Millions), “Confidential Source 1” has once again hired an attorney, Victoria Toensing, a former Reagan Justice Department official and former chief counsel of the Senate Intelligence Committee, to get his story out.
Sitting down with The Hill earlier, Toensing said that the last time her client tried to speak out “both his reputation and liberty” were “threatened” by the Obama administration in a effort to force his silence.

“All of the information about this corruption has not come out,” she said in an interview Tuesday. “And so my client, the same part of my client that made him go into the FBI in the first place, says, ‘This is wrong. What should I do about it?’”

Toensing said she also possesses memos that recount how the Justice Department last year threatened her client when he attempted to file a lawsuit that could have drawn attention to the Russian corruption during the 2016 presidential race as well as helped him recover some of the money Russians stole from him through kickbacks during the FBI probe.

The undercover client witnessed “a lot of bribery going on around the U.S.” but was asked by the FBI to sign a nondisclosure agreement (NDA) that prevents him from revealing what he knows to Congress, Toensing explained.

When he tried to bring some of the allegations to light in the lawsuit last year, “the Obama Justice Department threatened him with loss of freedom. They said they would bring a criminal case against him for violating an NDA,” she added.

Emails obtained by The Hill show that a civil attorney working with the former undercover witness described the pressure the Justice Department exerted to keep the client from disclosing to a federal court what he knew last summer.

“The government was taking a very harsh position that threatened both your reputation and liberty,” the civil lawyer wrote in one email. In another, she added, “As you will recall the gov’t made serious threats sufficient to cause you to withdraw your civil complaint.”
As we pointed out last summer when Peter Schweizer first released his feature documentary Clinton Cash, the Uranium One deal at the center of this scandal is believed to have netted the Clintons and their Clinton Foundation millions of dollars in donations and ‘speaking fees’ from Uranium One shareholders and other Russian entities.

Russian Purchase of US Uranium Assets in Return for $145mm in Contributions to the Clinton Foundation – Bill and Hillary Clinton assisted a Canadian financier, Frank Giustra, and his company, Uranium One, in the acquisition of uranium mining concessions in Kazakhstan and the United States.  Subsequently, the Russian government sought to purchase Uranium One but required approval from the Obama administration given the strategic importance of the uranium assets.  In the run-up to the approval of the deal by the State Department, nine shareholders of Uranium One just happened to make $145mm in donations to the Clinton Foundation.  Moreover, the New Yorker confirmed that Bill Clinton received $500,000 in speaking fees from a Russian investment bank, with ties to the Kremlin, around the same time.  Needless to say, the State Department approved the deal giving Russia ownership of 20% of U.S. uranium assets
Meanwhile, the ‘journalists’ over at CNN are still trying to get to the bottom of exactly who spent the $100,000 on Facebook ads…

end

A good Bellwether for global growth:  GE plunges 5% after slashing guidance

(courtesy zerohedge)

General Electric Plunges 5% After Slashing Guidance

While it may not have slashed its dividend, yet, General Electric shares plunged 5% in the pre-market after the company cut its 2017 profit forecast while its new CEO grapples with one of the deepest slumps in the iconic US manufacturer’s history. The company reported that adjusted earnings this year are expected to be only $1.05 to $1.10 per share, down over 30% from a previous range of $1.60 to $1.70 a share. This is also sharply lower than the sellside consensus of $1.54 a share.

For the current quarter, the industrial conglomerate and maker of jet engines and gas turbines reported adjusted Q3 EPS of 29 cents, nearly 50% below the 50 cent consensus estimate.
As Bloomberg reports, the revision underscores the severity of the challenges facing Chief Executive Officer John Flannery, who took over Jeffrey Immelt’s longtime post in August. With hurdles from poor cash flows to slumping power-generation markets, GE is by far the biggest loser on the Dow Jones Industrial Average this year and has seen a quarter of its market value evaporate.

The cut is the latest step in what is shaping up to be a dramatic repositioning of GE under its new leadership. Flannery this month welcomed a representative of activist investor Trian Fund Management to GE’s board and announced several management changes. He is seeking deep cost cuts and has said he will consider all options, including portfolio changes.
In addition to GE no longer using a “shadow” private jet for its CEO, not to mention slashing its fleets of private cars and other corporate perks as the WSJ infamously reported yesterday, expect thousands more in layoffs from what was once America’s most iconic company, which in turn will follow to more complaints by the Fed about America’s growing “qualified labor shortage.” And now we wait news on the fate of the company’s dividend which wall street expects to be “massively” cut.

END

WHAT A FARCE!! TRUMP IS THINKING OF BRINGING IN BOTH POWELL AND TAYLOR TO THE FED

(COURTESY ZERO HEDGE)

Trump Considers Bringing Both Powell And Taylor To The Fed Together

The farce is now complete.
What is the best way to run schizophrenic monetary policy in a schizophrenic country, where the Fed sees “mysterious” deflation everywhere even as most ordinary consumers can’t afford to pay their health insurance, resulting in Fed chair candidates ranging from the extremely hawkish end to the dovish one? Simple: if you are Donald Trump, you bring both of them in.
TRUMP SAYS BRINGING TAYLOR, POWELL TO FED TOGETHER AN OPTION
Why? Speaking on Fox News Trump “explained” that “It is in my thinking, and I have a couple of others things in my thinking but I like talent and they’re both very talented people.”
Which is great news, because if just Taylor is bullish, and just Powell is even more bullish, the two together will send the S&P to 3,000 in a few days.
Of course, two may enter, but if the market ever has an even 1% drop, just one – or none – will leave.

What about Yellen?

END

The USA deficit for the fiscal 2017 is much worse than thought as spending in the last month pushed the deficit to 666 billion dollars.

(courtesy zero hedge

US Spent A Record $4 Trillion In Fiscal 2017, Pushing Deficit To $To $666 Billion

One year ago, the CBO forecasted that the  Fiscal 2017 US deficit (for the year ended September 30), would be in the mid-$500 billion range. It was not meant to be, however, and on Friday the Treasury reported that with outlays of $341 billion in the last month of the fiscal year, offset by $349 billion in receipts, the full year deficit grew to a nice, round and very memorable $666 billion in fiscal 2017, up $80 billion or 14% from fiscal 2016. The government ran an $8 billion surplus in September, much smaller than the $33 billion surplus in September 2016. Receipts mid-$500 billion range. It was not meant to be, however, and on Friday the Treasury reported that with outlays of $341 billion in the last month of the fiscal year, offset by $349 billion in receipts, the full year deficit grew to a nice, round and very memorable $666 billion in fiscal 2017, up $80 billion or 14% from fiscal 2016. The government ran an $8 billion surplus in September, much smaller than the $33 billion surplus in September 2016.

for complete commentary..

http://www.zerohedge.com/news/2017-10-20/us-spent-record-4-trillion-fiscal-2017-pushing-deficit-666-billion?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29

Well that about does it for tonight

I will see you FRIDAY night

HARVEY

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