Nov 8/Gold rallies $8.35 to close at $1283.75 and silver was up 16 cents to $17.11/India is back with respect to gold demand as officially they import close to 900 tonnes (with smuggling over 1000 tonnes)/Tax reform looks dead in the water/USA to remove detente with Cuba/

 

GOLD: $1283.75  UP $8.35

Silver: $17.11 UP 16  cents

Closing access prices:

Gold $1281.50

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: $1285.90 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1277.60

PREMIUM FIRST FIX:  $8.30(premiums getting smaller)

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SECOND SHANGHAI GOLD FIX: $1285.00

NY GOLD PRICE AT THE EXACT SAME TIME: $1279.00

Premium of Shanghai 2nd fix/NY:$6.00 PREMIUMS GETTING smaller)

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LONDON FIRST GOLD FIX:  5:30 am est  $1282.25

NY PRICING AT THE EXACT SAME TIME: $1280.85???

LONDON SECOND GOLD FIX  10 AM: $1284..00

NY PRICING AT THE EXACT SAME TIME. 1285.10 ??

For comex gold:

NOVEMBER/

NOTICES FILINGS TODAY FOR OCT CONTRACT MONTH: 7 NOTICE(S) FOR  700  OZ.

TOTAL NOTICES SO FAR: 973  FOR 97,300 OZ  (3.026TONNES)

For silver:

NOVEMBER

 1 NOTICE(S) FILED TODAY FOR

5,000  OZ/

Total number of notices filed so far this month: 864 for 4,320,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID  $7481 OFFER /$7505    UP $365.00  (MORNING)

BITCOIN CLOSING;  BID $7319 OFFER: 7344 //  UP $204.00

end

Let us have a look at the data for today

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In silver, the total open interest FELL BY A CONSIDERABLE  5170 contracts from 208 ,500 DOWN TO 203,330 WITH  YESTERDAY’S  TRADING IN WHICH SILVER FELL BY A RATHER LARGE  27 CENTS. THE CROOKS WERE SOMEWHAT SUCCESSFUL IN COVERING SOME THEIR MASSIVE SILVER SHORTS.  YESTERDAY WE NO DOUBT HAD SOME OF OUR NEWBIE SPEC LONGS WERE STOP LOSSED OUT OF THEIR CONTRACTS TO WHICH OUR BANKERS DUTIFULLY COVERED. 

RESULT: A GOOD SIZED DROP IN OI COMEX  WITH THE  CONSIDERABLE 27 CENT PRICE FALL.  NEWBIE SPEC LONGS WERE AGAIN STOP LOSSED OUT OF THE SILVER ARENA TO WHICH ARE BANKERS DUTIFULLY COVERED.

 In ounces, the OI is still represented by just OVER 1 BILLION oz i.e.  1.016 BILLION TO BE EXACT or 145% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT OCT MONTH/ THEY FILED: 1 NOTICE(S) FOR 5,000  OZ OF SILVER

In gold, the open interest SURPRISINGLY FELL  BY A TINY 584 CONTRACTS DESPITE THE GOOD SIZED FALL IN PRICE OF GOLD ($4.75) WITH YESTERDAY’S TRADING .  The new OI for the gold complex rests at 536,843. NEWBIE LONGS RE-ENTERED THE ARENA TO WHICH THE BANKERS DUTIFULLY SUPPLIED THE NECESSARY SHORT PAPER..OUR BANKERS WERE UNSUCCESSFUL IN COVERING ANY GOLD SHORTS. 

NO EFP’S WERE ISSUED FOR THE NOVEMBER CONTRACT MONTH.

Result: A GOOD SIZED  INCREASE IN OI WITH THE FALL IN PRICE IN GOLD ($4.75). WE HAD MINIMAL BANK SHORT COVERING AS WE HAD NEWBIE LONGS RE-ENTERING THE GOLD COMEX AREA TO WHICH OUR BANKERS DUTIFULLY SUPPLIED THE NECESSARY SHORT PAPER.

we had: 7 notice(s) filed upon for 700  oz of gold.

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

GLD:

A huge change in gold inventory at the GLD/ a withdrawal of 1.18 tonnes

Inventory rests tonight: 843.09 tonnes.

SLV

TODAY WE HAD NO CHANGE IN SILVER INVENTORY AT THE SLV

INVENTORY RESTS AT 318.074 MILLION OZ

end

.

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

1. Today, we had the open interest in silver FELL  BY A LARGE  5,170 contracts from 208,500  DOWN TO 203,330 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH THE CONSIDERABLE FALL IN SILVER PRICE (A DROP OF 27 CENTS).  OUR BANKERS WERE MILDLY SUCCESSFUL IN THEIR ATTEMPT TO COVER SOME OF THEIR SILVER SHORTS. NEWBIE LONGS IN SILVER EXITED THE ARENA AS THEY WERE STOP LOSSED OUT OF THEIR CONTRACTS BY THE BANKERS.

RESULT:  A GOOD SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 27 CENT FALL IN PRICE  (WITH RESPECT TO YESTERDAY’S TRADING). OUR BANKER FRIENDS WERE MILDLY SUCCESSFUL IN THEIR ATTEMPT TO COVER SOME OF THEIR HUGE BURGEONING SILVER SHORTS . . . NEWBIE LONGS EXITED THE SILVER ARENA AS THEY WERE STOP LOSSED OUT OF THEIR LONGS TO WHICH OUR BANKERS DUTIFULLY  COVERED THEIR SHORT PAPER.

(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 1.89 points or .06% /Hang Sang CLOSED DOWN 86.74 pts or 0.30% / The Nikkei closed DOWN 23.78 POINTS OR 0.10%/Australia’s all ordinaires CLOSED UP 0.03%/Chinese yuan (ONSHORE) closed UP  at 6.6288/Oil DOWN to 56.93 dollars per barrel for WTI and 63.48 for Brent. Stocks in Europe OPENED  RED  .  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.6288. OFFSHORE YUAN CLOSED WEAKER TO THE ONSHORE YUAN AT 6.6356  //ONSHORE YUAN  STRONGER AGAINST THE DOLLAR/OFF SHORE WEAKER TO THE DOLLAR/. THE DOLLAR (INDEX) IS WEAKER AGAINST ALL MAJOR CURRENCIES. CHINA IS  VERY HAPPY TODAY.

3a)THAILAND/SOUTH KOREA/NORTH KOREA

i)North Korea//South Korea

b) REPORT ON JAPAN

c) REPORT ON CHINA

4. EUROPEAN AFFAIRS

i)GERMANY/DEUTSCHE BANK

Not good for the world’s largest derivative bank:  their trading revenue drops 30% and now in a desperate scramble for profit they are trying to ramp up their loan business to which there is nobody

( zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)IRAN/SAUDI ARABIA/USA

Iran slams Saudi Arabia on the ballistic attack on the Saudi Airport.  They claim Iran had nothing to do with it.

( zerohedge)

ii)LEBANON

A must read…the real reason for the Saudi conflicts in the middle east:  gasoline as Saudi is desperate to stop Iranian gas coming from Qatar through Syria onto Lebanon and then through Europe.  Saudi must stop the Shiite crescent and that is why they enlisted the help of Israel who will side with them along with the USA

( Golem/XIV/blog)

iii)Now we find the real motive behind the Saudi purge:  800 billion USA in confiscated assets

( zerohedge)

6 .GLOBAL ISSUES

 

7. OIL ISSUES

USA oil production jumps to record highs; Oil falls

( zerohedge)

8. EMERGING MARKET

9.   PHYSICAL MARKETS

 i) interesting:  “buy bitcoin” overtakes “buy gold” on online searches

( GATA/Bloomberg)

ii)Bitcoin rises above 7500.00 /  Goldman Sachs claims it may go higher.  Bitcoin has no underlying value and eventually it will go to its intrinsic value and that is zero.  However I point out the rise in price and you can visualize that gold will rise to bitcoin’s value or greater once manipulation ends

( zerohedge)

iii)Bitcoin then explodes northbound to $7900.00
(courtesy zerohedge)

iv)India is now heading for importation of 900 tonnes of gold. This is official gold and does not include smuggled gold which is somewhere around 150 to 200 tonnes

( Lawrie Williams/Sharp’s Pixley)

 10.  USA stories which will influence the price of gold/silver

 i)Now the senate is considering a one year delay in the cutting of the corporate rate to 20%. The markets do not like this and down goes the dollar ”

( zerohedge)

ib)Markets do not like this:  Another delay on the tax bill as it will not be released on Thursday. Mnuchin admits that the Corporate tax cut delay in implementation is likely.  My bet: nothing gets passed.

( zerohedge)

ii)Michael Snyder reports that Bricks and mortar retail store closing have now hit a new record high.  West coast homelessness skyrockets

( Michael Snyder/Economic Collapse Blog)

iii)Quite a statistic: 1/3 of all students attending college drop out and many of those default on their student loans

( zerohedge)

iv)Maui/Hawaii:

Citizens in Maui are outraged at a huge 52% spike in pension contributions to the public pension employee system after the government raised property taxes by a huge 30 million dollars

( zerohedge)

v)Repealing Obamacare individual mandate would save the USA $338 billion due to less subsidies. However they need to find more money elsewhere to fund the tax cuts.  This will not happen:

( zerohedge)

vi)This sure looks like political sabotage as Hillary’s Fusion GPS operative met with Russian lawyer Natalia Veselnitskaya one hour before and one hour after the Trump Jr meeting

( zerohedge)

vii)CUBA/USA

the White House is now moving to formally reverse the Obama Era detente with Cuba which will again restrict USA citizens from visiting the island
(courtesy zerohedge)

Let us head over to the comex:

The total gold comex open interest SURPRISINGLY FELL BY A TINY  584 CONTRACTS UP to an OI level of 536,843 WITH THE GOOD SIZED FALL IN THE PRICE OF GOLD ($4.75 RISE IN YESTERDAY’S  TRADING).  SOME NEWBIE LONGS AGAIN ENTERED THE GOLD ARENA WITH THE BANKERS REGRETTABLY  SUPPLYING THE NECESSARY PAPER AS THEY  COVERED A MINIMAL AMOUNT OF THEIR HUGE SHORTFALL.

NO EFP’S WERE ISSUED FOR NOVEMBER YESTERDAY.

Result: a  SURPRISE TINY DECREASE IN OPEN INTEREST DESPITE THE CONSIDERABLE  FALL IN THE PRICE OF GOLD ($4.75.)  WE  HAD MINIMAL  BANKER SHORT COVERING.  NEWBIE LONGS AGAIN ENTERED THE GOLD ARENA EMBOLDENED DUE TO GLOBAL TENSIONS ESPECIALLY IN SAUDI ARABIA.  OUR BANKER FRIENDS REGRETTABLY HAD TO SUPPLY THE NECESSARY SHORT PAPER AS THEY WERE TOTALLY UNSUCCESSFUL IN THEIR ATTEMPT TO COVER ANY GOLD SHORTS.

 

We have now entered the NON active contract month of NOVEMBER.HERE WE HAD A LOSS OF 104 CONTRACT(S) DOWN TO 84.  We had 110 notices filed YESTERDAY so surprisingly we again gained 6 contracts or 600 additional oz will stand for delivery in this non active month of November. TO SEE BOTH GOLD AND SILVER RISE IN AMOUNT STANDING (QUEUE JUMPING) IS A GOOD INDICATOR OF PHYSICAL SHORTNESS FOR BOTH OF OUR PRECIOUS METALS.

The very big active December contract month saw it’s OI LOSE 13,115 contracts DOWN to 345,546. January saw its  open interest rise by 147 contracts up to 589.  FEBRUARY  saw a gain of 10,817 contacts up to 125,397.

.

We had 7 notice(s) filed upon today for  700 oz

 VOLUME FOR TODAY (PRELIMINARY) NOT AVAILABLE

CONFIRMED VOLUME YESTERDAY: 353,759

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And now for the wild silver comex results.  Total silver OI FELL BY a CONSIDERABLE 5170 CONTRACTS FROM 208,500 DOWN TO 203,330 WITH YESTERDAY’S  27 CENT FALL IN PRICE. WE HAD MILD BANKER SHORT COVERING AS THE CROOKS  STOP LOSSED SOME OF SILVER LONGS OUT OF THEIR CONTRACTS  WITH RESPECT TO YESTERDAY’S TRADING…. WE MAY HAVE HAD SOME SILVER EFP’S  ISSUED FOR DECEMBER, BUT I DOUBT IT..JUST LONGS HIT WITH STOP LOSSES!! .
The new front month of  November saw its OI fall by 7 contracts  and thus it stands at 3.  We had 7 notices served YESTERDAY so we gained 0 contracts or an additional NIL oz will stand in this non active month of November.   After November we have the big active delivery month of December and here the OI FALL by 7,093 contracts DOWN to 131,204.  January saw A GAIN OF 6  contracts RISING TO 745.

We had 1 notice(s) filed for  5,000 oz for the OCT. 2017 contract

INITIAL standings for NOVEMBER

 Nov 8/2017.

Gold Ounces
Withdrawals from Dealers Inventory in oz   nil oz
Withdrawals from Customer Inventory in oz  
29,312.128
 oz
BRINKS
JPMORGAN
Deposits to the Dealer Inventory in oz    nil oz
Deposits to the Customer Inventory, in oz 
86,974.222 oz
Scotia
No of oz served (contracts) today
 
7 notice(s)
700 OZ
No of oz to be served (notices)
77 contracts
(7700 oz)
Total monthly oz gold served (contracts) so far this month
973 notices
97300 oz
3.026 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  0 kilobar transaction(s)/ 
 WE HAD nil DEALER DEPOSIT:
total dealer deposits: nil oz
We had nil dealer withdrawals:
total dealer withdrawals:  nil oz
we had 1 customer deposit(s):
i) Into Scotia: 86,974.222 oz
total customer deposits  86,974.222  oz
We had 0 customer withdrawal(s)
total customer withdrawals; nil  oz
 we had 0 adjustment(s)
For NOVEMBER:

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 7 contract(s)  of which 0 notices were stopped (received) by j.P. Morgan dealer and 4 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 NOVEMBER. contract month, we take the total number of notices filed so far for the month (973) x 100 oz or 97300 oz, to which we add the difference between the open interest for the front month of NOV. (84 contracts) minus the number of notices served upon today (7 x 100 oz per contract equals 105,000  oz, the number of ounces standing in this NON active month of NOV
 
Thus the INITIAL standings for gold for the NOVEMBER contract month:
No of notices served  (973) x 100 oz  or ounces + {(84)OI for the front month  minus the number of  notices served upon today (7) x 100 oz which equals 105,000 oz standing in this  active delivery month of NOVEMBER  (3.265 tonnes)
SOMEBODY AGAIN IS IN GREAT NEED OF PHYSICAL GOLD.
WE GAINED 6 ADDITIONAL CONTRACTS OR 600 OZ OF ADDITIONAL GOLD STANDING FOR METAL AT THE COMEX
THIS IS THE FIRST TIME EVER THAT WE HAVE WITNESSED CONSIDERABLE QUEUE JUMPING IN GOLD AT THE COMEX. SILVER’S QUEUE JUMPING STARTED IN MAY 2017 AND HAS NOT LET UP ONCE COMMENCED.
.
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Total dealer inventory 553,576.101 or 17.218 tonnes  (dealer gold continues to disappear)
Total gold inventory (dealer and customer) = 8,771,477.277 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 14 MONTHS  82 NET TONNES HAS LEFT THE COMEX.
end
And now for silver
AND NOW THE NOVEMBER DELIVERY MONTH
NOVEMBER INITIAL standings
 Nov 8/ 2017
Silver Ounces
Withdrawals from Dealers Inventory  nil
Withdrawals from Customer Inventory
 603,004.662 oz
CNT
Deposits to the Dealer Inventory
 nil oz
Deposits to the Customer Inventory 
 nil
oz
No of oz served today (contracts)
1 CONTRACT(S)
(5,000,OZ)
No of oz to be served (notices)
2 contract
(10,000 oz)
Total monthly oz silver served (contracts) 864 contracts

(4,320,000 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  0 deposit(s) into the dealer account:
total dealer deposit: nil    oz
we had nil dealer withdrawals:
total dealer withdrawals: nil oz
we had  1 customer withdrawal(s):
 i) Out of  CNT: 603,004.662 oz
TOTAL CUSTOMER WITHDRAWAL 603,004.662  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: nil   oz
 
 we had 0 adjustment(s)
The total number of notices filed today for the NOVEMBER. contract month is represented by 1 contracts FOR 5,000 oz. To calculate the number of silver ounces that will stand for delivery in NOVEMBER., we take the total number of notices filed for the month so far at 864 x 5,000 oz  = 4,320,0000 oz to which we add the difference between the open interest for the front month of NOV. (3) and the number of notices served upon today (1 x 5000 oz) equals the number of ounces standing.
 

 

.
 
Thus the INITIAL standings for silver for the NOVEMBER contract month:  864 (notices served so far)x 5000 oz  + OI for front month of NOVEMBER(3) -number of notices served upon today (1)x 5000 oz  equals  4,330,000 oz  of silver standing for the NOVEMBER contract month. This is EXCELLENT for this NON active delivery month of November. 
We gained 0 contracts or an additional NIL oz will stand for metal in the non active delivery month of November.
AS I MENTIONED ABOVE, WE HAVE BEEN WITNESSING QUEUE JUMPING IN SILVER FROM MAY 1 2017 ONWARD. IT IS NOW COMFORTING TO SEE CONSIDERABLE QUEUE JUMPING OCCURRING CONTINUALLY IN GOLD FOR THE FIRST TIME SINCE RECORDED TIME AT THE GOLD COMEX!!(1974). QUEUE JUMPING CAN ONLY OCCUR ON PHYSICAL METAL SHORTAGE.
 
 ESTIMATED VOLUME FOR TODAY:  32,037
CONFIRMED VOLUME FOR YESTERDAY:  110,833 CONTRACTS
YESTERDAY’S CONFIRMED VOLUME OF 110,833 CONTRACTS EQUATES TO 554 MILLION OZ OR 79.1% OF ANNUAL GLOBAL PRODUCTION OF SILVER
 
 
Total dealer silver:  43.218 million 
Total number of dealer and customer silver:   229.765 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 2.3 percent to NAV usa funds and Negative 2.4% to NAV for Cdn funds!!!! 
Percentage of fund in gold 62.4%
Percentage of fund in silver:37.3%
cash .+.3%( Nov 8/2017) 
2. Sprott silver fund (PSLV): STOCK  FALLS TO -1.04% (Nov 8 /2017) 
3. Sprott gold fund (PHYS): premium to NAV RISES TO -0.50% to NAV  (Nov 8/2017 )
Note: Sprott silver trust back  into NEGATIVE territory at -1.04%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.50%/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

NOV 8/ANOTHER HUGE WITHDRAWAL OF 1.18 TONNES OF GOLD FROM THE GLD DESPITE GOLD’S RISE TODAY.  INVENTORY RESTS AT 843.09

Nov 7/a huge withdrawal of 1.48 tonnes of gold from the GLD/Inventory rests at 844.27 tonnes

NOV 6/ a tiny withdrawal of .29 tonnes to pay for fees etc/inventory rests at 845.75 tonnes

Nov 3/no change in gold inventory at the GLD/Inventory rests at 846.04 tonnes

NOV 2/STRANGE!!! WE HAD ANOTHER WITHDRAWAL OF 3.55 TONNES FROM THE GLD DESPITE GOLD’S RISE OF $6.60 YESTERDAY AND $1.55 TODAY/INVENTORY RESTS AT 846.04 TONNES

Nov 1/a withdrawal of 1.18 tonnes of gold from the GLD/Inventory rests at 849.59 tonnes

OCT 31/no change in gold inventory at the GLD/Inventory rests at 850.77 tonnes

Oct 30/STRANGE WITH GOLD UP THESE PAST TWO TRADING DAYS, THE GLD HAS A WITHDRAWAL OF 1.18 TONNES FROM ITS INVENTORY/INVENTORY RESTS AT 850.77 TONES

Oct 27/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 851.95 TONNES

Oct 26./A WITHDRAWAL OF 1.18 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 851.95 TONNES

Oct 25/NO CHANGE (SO FAR) IN GOLD INVENTORY/INVENTORY RESTS AT 853.13 TONNES

Oct 24./no change in gold inventory at the GLD/inventory rests at 853.13 tonnes

OCT 23./NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 853.13 TONNES

OCT 20/NO CHANGE IN GOLD INVENTORY AT THE GLD/ INVENTORY REMAINS AT 853.13 TONNES

oCT 19/NO CHANGE/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

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Nov 8/2017/ Inventory rests tonight at 843.09 tonnes
*IN LAST 267 TRADING DAYS: 97.86 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 202 TRADING DAYS: A NET  59,42 TONNES HAVE NOW BEEN ADDED INTO  GLD INVENTORY.
*FROM FEB 1/2017: A NET  28.31 TONNES HAVE BEEN ADDED.

end

Now the SLV Inventory

NOV 8/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.074 MILLION OZ

Nov 7/a huge withdrawal of 944,000 oz from the SLV/inventory rests at 318.074 million oz/

NOV 6/no change in silver inventory at the SLV/Inventory rests at 319.018 million oz/

Nov 3/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS TONIGHT AT 319.018 MILLION OZ.

NOV 2/A TINY LOSS OF 137,000 OZ BUT THAT WAS TO PAY FOR FEES LIKE INSURANCE AND STORAGE/INVENTORY RESTS AT 319.018 MILLION OZ/

Nov 1/STRANGE!  WITH SILVER’S HUGE 48 CENT GAIN WE HAD NO GAIN IN INVENTORY AT THE SLV/INVENTORY RESTS AT 319.155 MILLION OZ/

Oct 31/no change in silver inventory at the SLV/Inventory rests at 319.155 million oz

Oct 30/STRANGE!WITH SILVER UP THESE PAST TWO TRADING DAYS, WE HAD A HUGE WITHDRAWAL OF 1.133 MILLION OZ FROM THE SLV/INVENTORY RESTS AT 319.155 MILLION OZ/

Oct 27/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.288 MILLION OZ

Oct 26/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.288 MILLION OZ/

Oct 25/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.288 MILLION OZ

Oct 24/no change in inventory at the SLV/inventory rests at 320.288 million oz/

oCT 23./STRANGE!!WITH SILVER RISING TODAY WE HAD A HUGE WITHDRAWAL OF 1.039 MILLION OZ/inventory rests at 320.288 million oz/

OCT 20NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 321.327 MILLION OZ

oCT 19/INVENTORY LOWERS TO 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

Nov 8/2017:

Inventory 318.074 million oz
end
  • 6 Month MM GOFO

    Indicative gold forward offer rate for a 6 month duration

    + 1.43%
  • 12 Month MM GOFO
    + 1.65%
  • 30 day trend

end

Major gold/silver trading/commentaries for WEDNESDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

Platinum Bullion ‘May Be One Of The Only Cheap Assets Out There’

Platinum Bullion ‘May Be One Of The Only Cheap Assets Out There’

Platinum “may be one of the cheap assets out there” and “is cheap when compared with stocks or bonds” according to Dominic Frisby writing in the UK’s best selling financial publication Money Week.

Platinum Bullion in USD (15 years)

Frisby writing in Money Week laments the total absence of value in today’s markets. He then identifies an asset that is both cheap (on a relative basis) and is valuable and the article is well worth a read:

The value investor’s lament – where have all the cheap assets gone?

Every week in MoneyWeek magazine there’s a small column devoted to great investors from the past. You read a bit about who they were, what their circumstances were and what their methodologies were.

Sometimes I’ve heard of them, sometimes I haven’t – but as often as not it seems that they were a value investor of some kind. Value investing is, I suppose, the most basic and instinctive of investing systems. You buy when you deem something to be cheap and you sell when it gets expensive. The principle has been applied for as long as humans have invested money.

And yet it no longer seems to work. In this modern age of suppressed rates, quantitative easing, and easy (if you mix in the right circles) money, nothing is cheap – except money itself.

Value investors have, mostly, been beaten by index trackers, and those who have simply gone long (ideally with as much leverage as possible), have wiped the floor with the prudent. Sensible, disciplined approaches have not worked. The stock market has flown and taken everything with it.

As I went for my daily walk yesterday, I asked myself: “What out there is actually cheap at the moment?”

Trader wearing a Finding value has become increasingly difficult

It depends on your valuation matrix, of course, but it’s hard to make the case that stocks are cheap. The Dow, the S&P 500, the Nasdaq – they are all at all-time highs, pretty much. I’m not saying they can’t go higher. But all-time highs is not cheap.

The various FTSE indices are also in record territory, same too France and Germany. Japan is at 20-year-plus highs. On a country-by-country basis you might be able to argue somewhere is cheap – Greece (for a reason) – but it’s hard to say there is real value out there in stocks as an asset.

The same goes for bonds. The yields on government bonds are, except for exceptional cases, minimal. As low as, 2016 excepted, they’ve ever been. Again, yields could fall – bonds could get even more expensive – but you can’t make the case that government bonds are cheap. The same goes for corporate and junk bonds.

In the UK, the real estate market has two sides to it. In places like London, Brighton, Bristol, Oxford or Cambridge, prices bear little relation to local earnings.

Then there are other regions where the 2007 highs were never recovered. You could find value in, say, parts of the Midlands or North Devon. But that’s not the same as being irresistibly cheap. Moreover, the future for UK real estate investing does not look good to me – it seems the government does not want to encourage it beyond owning your own home.

You start looking at other assets: bitcoin and digital assets. Nope. Not cheap. Art. Nope. Not cheap either.

The only asset class that’s cheap right now

About the only assets I can find that are cheap are in the commodities sector. Oil looks reasonable value. I’m writing this piece from Texas, and I can tell you that oil consumption shows no signs of abating.

But the real zinger for me is platinum.

It’s as though the kid at school, who used to get straight As in all his grades and be captain of all the sports teams, has suddenly for no apparent reason, been relegated to the back of the class. He’s politely putting his hand up and saying, “Hey, remember me?” but nobody cares. They’re all ignoring him.

John wrote about this the other week, but it really is striking.

Back in the day, platinum was the star. It was a precious metal, so it would benefit from all the inflation of the 2000s. But it was an industrial metal too, so it would benefit from the industrial expansion. Rare, beautiful, hard to produce. What could possibly go wrong?

The world blows up and gold and silver go to the moon – platinum goes there too. The global economy expands, everybody has more money – one thing they spend their new-found wealth on is platinum jewellery. It’s more precious than gold after all. People start driving more. More cars = more platinum.

Instead, platinum has gone nowhere, and it’s been forgotten.

The body blow seems to have been the Volkswagen scandal. Diesel emissions are greater than stated. The future for diesel cars (which use platinum in their catalytic converters), and thus the future for the precious metal, looks grim.

Meanwhile, the whole “gold as money” narrative has upped sticks and and moved to bitcoin. Central banking works apparently, and so there is no need for precious metals.

And the wealth created by the economic expansion of the past few years has not trickled down into platinum jewellery buying sufficiently to affect the price. The money must have all gone to rich folk who already own platinum!

Any strike or mishap in South Africa that might affect platinum supply (something like 90% of platinum is mined there) has just been met with a global shrug.

Platinum is simply too cheap

Well, let me tell you a thing or two, Mr Market, who doesn’t care about platinum. You’re wrong!

Gold (at around $1,290 per ounce) is now about 40% more expensive than platinum (around $925). That is not normal. Platinum is supposed to be more expensive than gold. Gold is typically 75% of the price of platinum. To redress that balance , platinum should be around $1,600.

Platinum’s cheap little sister palladium (which is a law unto itself) is now more expensive than platinum. Again, that is not normal. It happens every now and then – well, once since 1970, in 2000-2001 – but it is the exception, not the rule. It’s like a BMW – nice, but not that nice – costing more than a Rolls Royce.

Platinum is cheap when compared with stocks or bonds. It is sitting around or just below its cost of production, which is going to strain supply (in fact it already has).

Who cares about platinum? Nobody really. It’s amazing that a metal this embedded in our collective psyche is meeting such apathy.

The chart below shows the platinum price over the last ten years.

Platinum price chart

You can see the steady decline from 2011 through to 2016, the brief rebound rally, and then further declines. But those further declines have been with much more of sideways bias. In other words, although there aren’t many buyers, the hard selling seems to be done.

I get why nobody is buying platinum – there’s no compelling narrative for it at the moment. There’s no reason to buy it beyond that it’s cheap. But nor is there any real reason to sell it.

There’s often a cycle to bear markets. First you get the hard selling, then you get the forgotten phase – when an asset is simply overlooked. It seems we are in such a phase now.

Although we need not see a huge rise in the near-time, I would say the downside risk here is limited in a way that it isn’t in other asset classes – stocks, bonds, bitcoin – where the downside risk is fairly substantial.

It’s a case of accumulating and sitting patiently. Which is what value investors do.

You can read the full article on Money Week here

Note: The safest ways to own platinum is with platinum coins, platinum bars (delivery and Secure Storage) and platinum certificates all of which are offered by phone by GoldCore. They will be available for online purchase when our new website goes live in the coming days.

News and Commentary

Gold edges higher as dollar slips (Reuters.com)

Stocks Slide, Dollar Gains as Taxes Take Focus (Bloomberg.com)

Wall Street extends losses as financial stocks weigh (Reuters.com)

Gold Imports by India Slump as Inventories Pile Up (Bloomberg.com)

Gold market is moving from West to East – Shanghai Gold Exchange Chairman (Xinhaunet.com)

Centuries of Data Forewarn of Rapid Reversal From Low Interest Rates (Bloomberg.com)

Prepare Your Finances For Interest Rate Rises (MoneyWeek.com)

‘Hyper-Crash’ Is Coming – It’s Not The Everything Bubble, It’s The Global Short Volatility Bubble (ZeroHedge.com)

Explosive Leaked Secret Israeli Cable Confirms Israeli-Saudi Coordination To Provoke War (ZeroHedge.com)

Global Markets Incredibly Inflated & Artificially Manipulated – Marc Faber (USAWatchDog.com)

Gold Prices (LBMA AM)

08 Nov: USD 1,282.25, GBP 976.82 & EUR 1,105.43 per ounce
07 Nov: USD 1,276.35, GBP 970.92 & EUR 1,103.28 per ounce
06 Nov: USD 1,271.60, GBP 969.72 & EUR 1,095.61 per ounce
03 Nov: USD 1,275.30, GBP 976.24 & EUR 1,094.59 per ounce
02 Nov: USD 1,276.40, GBP 965.09 & EUR 1,095.92 per ounce
01 Nov: USD 1,279.25, GBP 961.48 & EUR 1,099.52 per ounce

Silver Prices (LBMA)

08 Nov: USD 17.00, GBP 12.96 & EUR 14.65 per ounce
07 Nov: USD 17.01, GBP 12.95 & EUR 14.70 per ounce
06 Nov: USD 16.92, GBP 12.90 & EUR 14.59 per ounce
03 Nov: USD 17.09, GBP 13.05 & EUR 14.67 per ounce
02 Nov: USD 17.08, GBP 12.98 & EUR 14.66 per ounce
01 Nov: USD 16.94, GBP 12.74 & EUR 14.55 per ounce


Recent Market Updates

– World’s Largest Gold Producer China Sees Production Fall 10%
– German Investors Now World’s Largest Gold Buyers
– Gold Price Reacts as Central Banks Start Major Change
– Why Switzerland Could Save the World and Protect Your Gold
– Invest In Gold To Defend Against Bail-ins
– Stumbling UK Economy Shows Importance of Gold
– Wozniak and Thiel Fuel Bitcoin-Gold Debate: Gold Comes Out On Top
– Russia Buys 34 Tonnes Of Gold In September
– Gold Will Be Safe Haven Again In Looming EU Crisis
– Gold Is Valuable Due to “Extreme Rarity” – Must See CNN Video
– Gold Is Better Store of Value Than Bitcoin – Goldman Sachs
– Next Wall Street Crash Looms? Lessons On Anniversary Of 1987 Crash
– Key Charts: Gold is Cheap and US Recession May Be Closer Than Think

END

Interesting:  “buy bitcoin” overtakes “buy gold” on online searches

(courtesy GATA/Bloomberg)

‘Buy bitcoin’ overtakes ‘buy gold’ as online search phrase

 Section: 

By Eddie VanDer Walt
Bloomberg News
Tuesday, November 7, 2017

Add bitcoin to the list of things denting gold’s appeal.

Bullion’s rally faltered in the past two months as the dollar strengthened and global equities set new records, while concerns over Brexit and Catalonia’s push for independence failed to drum up notable haven demand. Now bitcoin’s surge is attracting investor interest toward the cryptocurrency and away from the metal, the biggest online vaulting service said.

According to Google Trends, global searches for “buy bitcoin” have overtaken “buy gold” after previously exceeding searches for how to purchase silver. Last month, the amount of gold changing hands on BullionVault’s online trading platform dropped by almost a third from the 12-month average. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2017-11-07/bitcoin-rally-is-erod…

END

Bitcoin rises above 7500.00 /  Goldman Sachs claims it may go higher.  Bitcoin has no underlying value and eventually it will go to its intrinsic value and that is zero.  However I point out the rise in price and you can visualize that gold will rise to bitcoin’s value or greater once manipulation ends

(courtesy zerohedge)

Bitcoin Rebounds Back Above $7500 As Goldman Eyes Next Wave Higher

Bitcoin has roundtripped $1200 from record highs near $7600, down to $6900, and back up to $7500 this morning on the heels of renewed interest in China crypto trading and a technical report from Goldman suggesting $7941 as a short-term target.

Quite a move but back to highs…

Two months ago, when Chinese regulator issued the “Seven Regulatory Bodies” Announcement and shut down the Bitcoin trading, the whole world thought that China Bitcoin gates were closing.

image courtesy of CoinTelegraph

As CoinTelegraph notesthough optimists were claiming that Chinese government might free Bitcoin trading under certain circumstances in the future, nobody anticipated that the day is coming this soon.

On Nov. 1, ZB.com, a new cryptocurrency trading platform, began to serve sellers and buyers all over the world, including those in mainland China. ZB.com has become a major trading platform which provides trades of BTC, LTC, ETH, ETC and another major type of cryptocurrencies within a few days.

What’s more, on Nov. 8, it started to accept CNY as a deposit. In other words, the CNY trading market which was closed by the regulators is activated now. The platform only accepts credit cards and debit cards for CNY deposit. WeChat Pay and Alipay are not accepted yet.

Though it’s still too soon to state that Bitcoin trading is freed by the Chinese government, it’s highly likely that the government, instead of banning Bitcoin and cryptocurrencies is more interested in regulating the market and supervising the trading. Like it or not, a new era of Bitcoin in China is coming, and law and order might play a more significant role now.

Additionally Goldman Sachs technical analysis team signals Bitcoin’s next leg is higher to $7941…

It exceeded an equality target from the July low at 6,044. This break indicated potential for an impulsive advance, one that could reach at least 7,941. This is the minimum target for a 3rd of 5-waves up and should therefore be a level from which to watch for signs of a consolidation.

It’s important to emphasize that a stall near 7,941 should be viewed as corrective/counter-trend. A typical 4th wave will often hold ~23.6% of the length of wave 3; which from 7,941 measures out to ~6,767. Given that this is just a 3rd of 5-waves up, the implications are that Bitcoin has potential to run further over time (wave 5 of 5).

View: Next in focus 7,941. Might consolidate there before continuing higher. Consider the pullback corrective against 6,767. Re-assess below 6,042 (38.2%).

 end
Bitcoin then explodes northbound to $7900.00
(courtesy zerohedge)

Bitcoin Explodes To $7900 After Hard Fork Suspended

The USD price of Bitcoin just exploded higher – near $7900 – on heavy volume as CoinDesk reports The organizers of a controversial bitcoin scaling proposal are suspending an attempt to increase the block size by way of a software upgrade. Bitcoin is up over 10% today, now up over 650% YTD:

As CoinDesk detailsknown for its strong early support from bitcoin startups and mining pools, the plan, called Segwit2x, or simply 2x, was to trigger a block size increase at block 494784, expected to occur on or around November 16th.

Understanding Segwit2x: Why Bitcoin’s Next Fork Might Not Mean Free Money

The suspension was announced today in an email, written by Mike Belshe, CEO and co-founder of bitcoin wallet software provider BitGo. One of the leaders of the Segwit2x project, he argued that the scaling proposal is too controversial to move forward.

He wrote:

“Unfortunately, it is clear that we have not built sufficient consensus for a clean block size upgrade at this time. Continuing on the current path could divide the community and be a setback to Bitcoin’s growth. This was never the goal of Segwit2x.”

“Until then, we are suspending our plans for the upcoming 2MB upgrade,” he added.

The note is also signed by companies that originally supported the plan, forged at an in-person meeting in May, including CEO and co-founder Mike Belshe, Xapo CEO Wences Casares, mining pool Bitmain co-founder Jihan Wu, Bloq CEO and co-founder Jeff Garzik, Blockchain CEO and co-founder Peter Smith and Shapeshift CEO and founder Erik Voorhees.

The group still has hopes that the block size will be increased further down the line, once there is more agreement from stakeholders.

dend

Then for no apparent reason Bitcoin was whacked down to 7100 and then it rebounded again:

Crypto Chaos As Bitcoin Drops $800 From Spike Highs

Having surged higher to almost tagged $7900 on the heels of news thatthe SegWit2x ‘hard fork’ would be suspended, Bitcoin has now crashed back to $7100.. before surging back to $7400…

end

India is now heading for importation of 900 tonnes of gold. This is official gold and does not include smuggled gold which is somewhere around 150 to 200 tonnes

(courtesy Lawrie Williams/Sharp’s Pixley)


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/9 AM EST

 
 i) Chinese yuan vs USA dollar/CLOSED UP AT 6.6288/shanghai bourse CLOSED UP AT 1.89 POINTS .06%   / HANG SANG CLOSED DOWN 86.74 POINTS OR 0.30% 

2. Nikkei closed DOWN 23.78 POINTS OR 0.10%   /USA: YEN FALLS TO 113.58

3. Europe stocks OPENED  RED  /USA dollar index FALLSS TO  94.91/Euro DOWN TO 1.1591

3b Japan 10 year bond yield: FALLS TO  . +.026/ GOVERNMENT INTERVENTION    !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 114.07/ 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::  56.93 and Brent: 63.48

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 DOWN for WTI and DOWN  FOR Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO  +.316%/Italian 10 yr bond yield DOWN to 1.721%  /SPAIN 10 YR BOND YIELD UP TO 1.456%  

3j Greek 10 year bond yield FALLS TO  : 5.092???  

3k Gold at $1280.60 silver at:17.05:  6 am est)   SILVER NEXT RESISTANCE LEVEL AT $18.50 

3l USA vs Russian rouble; (Russian rouble DOWN 10/100 in  roubles/dollar) 59.47

3m oil into the 56 dollar handle for WTI and 63 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 GOOD SIZED REVALUATION NORTHBOUND 

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 113.58 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  0.9989 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1577 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 FALLING to  +0.316%

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 2.307% early this morning. Thirty year rate  at 2.768% /

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

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

Bank Stocks, Dollar Slide Hit By Fresh Tax Reform Doubts

 

U.S. equity futures are little changed as European and Asian shares retreated, led by sliding bank stocks and a drop in the dollar as doubts over republican tax cuts and ongoing bond curve flattening hurt sentiment and prompted fresh questions over the viability of the US expansion.

Investor concerns also returned to geopolitics as Trump continued his tour of Asia with a mission of rallying the world to stand up to the North Korean threat. Calling out by name Russia and China, he said Wednesday that all responsible nations must join forces to deny Kim Jong Un’s regime any form of support. As Bloomberg reports, Trump is also expected to discuss trade with his Chinese counterpart, Xi Jinping. But the biggest overnight catalyst was a renewed fear about the fate of GOP tax cuts, as fresh doubts emerged about tax reform progress after the Washington Post reported Senate Republican leaders were considering holding cuts back by a year, while they are also said to be considering repealing deductions for state and local taxes.

Derek Halpenny, head of research at Mitsubishi UFJ in London told Reuters he was dubious over the progress of the tax cuts program being urged by U.S. President Donald Trump’s campaign. “The initial phases of discussions within the House (of Representatives) have brought up a lot of divisions and problems … If the story is true that they’re considering a delay of one year to the corporate tax cut, those big differences will need to be sorted,” he said. Francois Savary, chief investment officer at Prime Partners, said the doubts over the tax issue reinforce the case for some consolidation in the market, which has been fully priced for good news. “It’s something that would impact the domestic stocks in the U.S. and would be a setback for the market in general (and) it’s more than stock specific as people would reassess earnings growth expectations to the downside,” he said.

In addition to hitting the dollar, tax fears also led to renewed flattening in the yield curve, which sent Goldman shares 1.5% lower and weighed the most on the main stock index. The 2s10s curve dropped below 69bps and has now flattened for 8 sessions in a row which is the longest run since November 2015. The 5s30s curve also fell below 79bps and both are at 10 year lows. Clearly rates markets are saying something about the prospect of the tax bill as it stands so it’ll be interesting to see if that changes when we see the Senate version.  Ongoing flattening, which precedes an inversion, also implies that investors are expecting a slowdown if not recession.

European bonds were also snared by yield curve flattening, with yields on long-term German bonds falling to two-month lows on Wednesday.

In European equities, the Stoxx Europe 600 Index declined, with banks underperforming following disappointing results from Credit Agricole SA. European banking stocks were the worst performing sector as share indexes across the continent opened lower, following a poor session for U.S. banks. The two main European banking indices suffered the most, falling 1.1% and 0.9%, respectively, dragging an index of pan-European stocks lower 0.2%.

Elsewhere, in a largely risk-off session seen through the European periphery without a clear catalyst, Spanish bonds led a sell-off, with the 10Y Spain underperforming Italy by 2.5bps as large block trade sent bund futures to session high. European equity markets mirror peripheral underperformance, with smaller Italian banks particularly weak, while Credit Agricole slumped -4.5% after a poor earnings report. The retail sector was supported by Marks & Spencer (+0.9%) after positive trading numbers. In the U.K., Prime Minister Theresa May was weighing whether to fire a member of her cabinet only seven days after her defense secretary quit in a sexual harassment scandal.

Earlier, Asian shares wrung out another decade peak as data showed China’s demand for imports remained buoyant, pushing the MSCI world equity index to a fresh high. Beijing reported imports in October rose 17.2% from a year earlier, beating forecasts of 16%, but export growth was just under estimates at 6.9%.  Some more from Goldman on China’s trade numbers:

October exports and imports growth moderate, in line with consensus

Exports growth for China moderated to 6.9% yoy in October from 8.1% yoy in September, and import growth also slowed to 17.2% yoy from 18.6% yoy in September. Both readings are in line with consensus. The moderation in year-on-year growth may be partially due to the mid-autumn festival distortion, though probably to a lesser extent compared to those seen in Korea and Taiwan data. In sequential terms, exports fell 0.1% mom sa non-annualized, down from a modest increase of 0.2% in September. Imports increased by 0.3% mom sa non-annualized, moderating from 2.5% in September. The trade surplus increased to US$38.2bn from US$28.6bn in September.

For exports to major destinations, growth of exports to the EU and Japan improved to 11.4% yoy and 5.7% yoy, from 10.4% yoy and 0% yoy in September, respectively, while that to the US and ASEAN moderated to 8.3% yoy and 10.1% from 13.8% yoy and 10.7% in September.

For commodity imports, the imports growth decelerated both in volume and value terms. Specifically, in volume terms, iron ore imports fell 1.6% yoy, vs. +10.6% yoy in September; crude oil imports grew 7.8% yoy, vs. 11.9% yoy in September; steel products imports contracted 12.0% yoy, vs. +9.7% yoy in September. In value terms, iron ore imports decelerated to 16.9% yoy from 30.2% yoy in September; crude oil imports grew 29.1% yoy, vs. 29.4% yoy in September; steel products imports decelerated to 9.3% yoy, from 28.6% yoy in September.

Both exports and imports growth moderated in October 

An index of Asian stocks held steady at a decade high following the WaPo report that Senate Republicans are considering a one year delay in the implementation of a corporate-tax cut. The MSCI Asia Pacific Index rose 0.2% to 171.76 at 4:28 p.m. in Hong Kong after earlier rising to its highest since 2007 for a second day following little change in U.S. stocks on Tuesday. Consumer discretionary stocks including Sony Corp. and Toyota Motor Corp. gained, while energy companies dropped. The regional benchmark has to add less than a point to set a new record.

“The U.S. tax cut plan is looking like a long-drawn process and thus softer leads from equities overnight are weighing on Asian stocks,” said Jingyi Pan, market strategist at IG Asia Pte in Singapore. A lack of tax cuts as the earnings season draws down may set Asian stocks up for a correction, she added. Japan’s Topix index rose to the highest close since November 1991 amid optimism over corporate earnings, while the Nikkei 225 Stock Average retreating from its highest close since January 1992 marked Tuesday.

Emerging-market stocks slipped for the first time in three days, led by declines in the Middle East, while currencies were little changed. Goldman and Blackrock both said the developing-nation equity rally has further to go.  Shares in Saudi Arabia continued to decline even as kingdom sought to ease tension among global investors over a crackdown that’s seen princes and billionaires arrested. Stocks indexes in the U.A.E., Qatar, Oman and Saudi Arabia fall, led by a 1.9% drop in Dubai’s DFM General Index, the steepest in a year; Saudi Arabia’s anti-corruption purge and deepening feud with Iran spur a selloff across Gulf stock markets to the tune of almost $7 billion in three days.

The dollar weakened vs all G-10 peers except the pound and Treasuries were underpinned by the abovementioned corporate tax delay report; EUR/USD rose to session high in London trading with interbank names unwinding euro shorts. The pound fell a second day against the dollar, weighed by concern that U.K. PM Theresa May could lose a second member of her cabinet within a week as she is pondering whether to fire her International Development Secretary Priti Patel who held unauthorized meetings with Israel behind May’s back. USD/JPY was sold by leveraged accounts in Tokyo. Aussie gains despite weaker-than- forecast China trade surplus.
Chinese crude imports slipped they lowest level in a year, pushing oil prices lower, although traders said the overall market remains well supported because of OPEC-led supply cuts. WTI was also pressured ahead of the release of U.S. crude stockpiles data, while Treasuries were supported after bunds rallied on the back of block trades. U.S. crude oil was lower 0.2% at $57.06 while Brent crude futures were steady at $63.72 and off a over two-year peak of $64.65 hit earlier in the week.

Expected economic data include MBA mortgage applications and crude inventories. 21st Century Fox, Manulife Financial and Monster Beverage are among companies scheduled to report earnings

Market Snapshot

  • S&P 500 futures little changed at 2,586.70
  • STOXX Europe 600 down 0.06% to 394.40
  • MSCI Asia up 0.1% to 171.74
  • MSCI Asia ex Japan down 0.04% to 560.49
  • Nikkei down 0.1% to 22,913.82
  • Topix up 0.2% to 1,817.60
  • Hang Seng Index down 0.3% to 28,907.60
  • Shanghai Composite up 0.06% to 3,415.46
  • Sensex down 0.6% to 33,180.32
  • Australia S&P/ASX 200 up 0.03% to 6,016.27
  • Kospi up 0.3% to 2,552.40
  • German 10Y yield rose 0.5 bps to 0.332%
  • Euro up 0.1% to $1.1601
  • Italian 10Y yield fell 8.3 bps to 1.437%
  • Spanish 10Y yield rose 5.0 bps to 1.458%
  • Brent futures up 0.2% to $63.79/bbl
  • Gold spot up 0.3% to $1,279.04
  • U.S. Dollar Index down 0.08% to 94.83

Top Headline News

  • U.S. Tax: Senate Rep. leaders are considering a delay in corp tax cut by 1-year; would save $100b: Washington Post
  • Eyeing 2018 Midterms, Democrats Score Wins in Key Governor’s Races
  • President Donald Trump arrived in Beijing where he’ll meet with President Xi Jinping. Representatives from about 40 U.S. companies are expected to accompany Trump’s trade mission to China and sign deals for billions of dollars
  • BOJ board member Yukitoshi Funo says the central bank won’t necessarily keep policy the same until 2% is hit
  • China data: Oct. exports 6.1% y/y vs est. 7%; imports 15.9% y/y vs est. 17.5%; trade balance 245.5b yuan vs 280.5b yuan
  • Moody’s: Healthy economic growth and synchronized global expansion seen in 2017 likely to continue next year; global sovereigns have stable outlook for 2018
  • Federal Reserve Bank of Philadelphia President Patrick Harker suggested he’ll likely support a third 2017 interest-rate increase next month, but said he wants to see signs of inflation moving higher before backing tightening next year; has penciled in three increases for 2018
  • Catalan separatists missed the deadline to form an alliance to run as a united block, boosting Spain’s chances of restoring some normality to the rebel region
  • The House tax- writing committee entered its third day of work to hammer out the details of the Republican tax cut plan
  • The Asia-Pacific Economic Cooperation (APEC) CEO Summit is held in Danang, Vietnam
  • Fed’s Harker: Fed on track for Dec. hike; wants to see progress on inflation before 2018 hikes; repeats currently 3 hikes next year are penciled in by him
  • BOE Agents’ Summary of Business Conditions: pay growth had edged up and now expected to be somewhat higher in 2018; pay settlements expected to be 2.5-3.5% next year vs 2-3% in 2017
  • API inventories according to people familiar w/data: Crude -1.6m; Cushing +0.8m; Gasoline +0.5m; Distillates -3.1m
  • China Oct. trade balance: $38.2b sv $39.1b est; Exports 6.1% vs 7.0% est; Imports 15.9% vs 17.5% est.

Asian equities traded mixed with profit taking initially dragging down major bourses, while the rally in commodities ran out of steam. Additionally, US equity futures were also off marginally following reports that Senate GOP is said to consider delaying corporate tax rate cut for a year. ASX 200 (+0.07%) initially pulled away from its recent 10yr high seen yesterday, while Commonwealth Bank shares outperformed after a firm earnings report. Similarly, the Nikkei 255 (-0.1%) also retreated from its recent highs with financials leading the losses, while Toyota shares surged higher after strong earnings. Both the Shanghai Comp (+0.5%) and Hang Seng (+0.3%) moved into positive territory fuelled by tech stocks as shares in China Literature doubled on their debut trading session, in turn shrugging off the Chinese trade data which missed analyst estimates. In credit markets, JGBs have been supported by spill over buying in USTs while the Japanese curve has been noticeably steeper with the short-end yet again outperforming as the 2yr yield falls 1.5bps.

Top Asian News

  • Thailand Holds Key Rate Near Record Low as Growth Gains Momentum
  • Bharti Airtel Drops After Qatar Fund Seeks $1.5 Billion Selldown
  • IPO Fever Hits Hong Kong Market as 1-in-20 People Try to Buy

European equities continue the week’s trade in a subdued fashion, and reside in the marginal green. Utilities outperform, led by EON and SSE, following stela earnings from the latter, leading the FTSE higher. Energy struggles, albeit marginally so as oil markets slow their weekly gains, failing to help boost the sector. We suspected that there was more positive momentum building than any real desire to push prices lower, and that it was probably only a matter of time before the previous 10 year futures high was breached. However, follow-through buying has perhaps not been as strong or pronounced as anticipated (yet), despite reports of some 15k lots purchased from  163.40 (ie a tick above yesterday’s Eurex session peak) to the new 163.51 peak. To recap, 163.69 is the closest bullish objective on some charts, and that would nudge the equivalent yield down to 0.30%, which could be sticky. Elsewhere, and in keeping with the general fixed friendly trend, Gilts have extended gains to 125.67/1.217% in cash terms and T-notes have traded at 125-15/2.31% approx.

Top European News

  • ABN Amro Falls as Quarterly Net Interest Income Misses Estimates
  • SSE Leads U.K. Shares Higher on Retail Energy Merger With Innogy
  • Marks & Spencer Woes Deepen as New Chairman Tightens Hold
  • Paschi Declines Further as Lending and Commissions Disappoint
  • Maersk Closer to Drilling Deal After $1.8 Billion Writedown

In FX, markets are likely to await comments from BoE’s Carney and McCafferty, expected both in the early European evening. Cable has seen some marginal downside in early trade, as the majority of FX markets struggle to find any real direction following the lack of impetus from Asia. Sterling has struggled against the EUR in recent trade, edging toward yesterday’s 0.8835 highs. Falling yields have been the theme of recent trade, as the US curve trades around flattest levels since 2007. USD/JPY remains undeceive however, retaining lows around November’s 113.55- 113.70 support range and looking back toward 114.00, with the
large option expires between 113.50 and 114.50 signalling that the pair will remain in a tight range.
The lack of trade is evident of anticipation for the RBNZ later this evening, with rates expected to remain at 1.75%. The implied vol
indicates minimal risk, at the lowest levels of the year, helped by big expiries contacting – 640mln 0.6920-25 and 651mln at
0.6950.

In commodities, WTI and Brent crude futures have retraced from 2y highs, as the bulls take a breather, as the former trades around 57.00/bbl. It has been noted that China Oct crude oil imports have dropped to their lowest levels in over a year. Precious metals have traded largely sideward throughout the European and Asian sessions, as much focus remains on global risk sentiment as Trump continues his tour of Asia.

Looking at what appears to be a fairly light day ahead, BoJ meeting minutes from the October meeting are due this evening while Germany’s Merkel speaks this morning and the BoE’s Kohn speaks around lunchtime. With little in the way of other data, expect the US tax developments to remain a focus along with President Trump’s trip around Asia. Deutsche

US Event Calendar

  • 7am: MBA Mortgage Applications, prior -2.6%

* * *

DB’s Jim Reid concludes the overnight wrap

A Happy Trumpiversary to all our readers this morning. Yes, believe it or not, today marks exactly 12 months since the US election on November 8th 2016. A lot has happened in the last year, not least the President increasing his Twitter following by 29,111,914 people, or slightly more than the population of Ghana.

Twelve months on from the election and while markets have been a bit mixed in the last 24 hours it feels like most investors are still somewhat sitting of the sidelines waiting for further developments on tax reform. The general feeling is that we should get the Senate bill on Thursday, which as we noted yesterday will be closely watched given that it’s likely to include some significant differences relative to the House bill. Republican Senator Ted Cruz was reported as saying yesterday that GOP lawmakers need “to do more” than what is on the table so far. In the meantime markups to the House bill continued for a second day yesterday and will likely continue into today also.

As noted above it was a bit of a mixed session for the most part yesterday although US markets did end up closing a bit firmer in the last 30 minutes or so of trading. Indeed after the Stoxx 600 and DAX had closed -0.49% and -0.66% respectively in Europe, the S&P 500 closed broadly flat (-0.02%), not helped by a softer performance for banks. It appears that the latest developments in Saudi Arabia drove the early price action with the Gulf nation expanding its crackdown on anti-corruption.

The news yesterday was that Saudi Arabia had ordered banks to freeze bank accounts for dozens of individuals who have not been arrested. Bloomberg also reported that the Saudi Arabia Monetary Authority had sent a list of  hundreds of names to lenders which told them to freeze bank accounts linked or under those names. Later on, Saudi authorities moved to calm concerns and noted that the bank accounts frozen only relate to individual suspects, not of the companies they control.

The most eye-catching move yesterday in markets though was perhaps that of peripheral bond markets. BTPs rallied 8bps yesterday to 1.689% while 10y yields in Spain and Portugal closed 6.1bps and 9.7bps lower respectively – with the latter below 2% for the first time since April 2015. We’ve been scratching our heads a bit to explain the price action. With Treasuries (-0.2bps) and Bunds (-0.8bps) little changed there was some suggestion that the move was a bit of a delayed reaction to the Sicily regional election result on the weekend given the fairly muted price action on Monday. In any case the moves stood out given the relatively benign changes elsewhere. It is however worth noting that yesterday was another day of flattening across the Treasury curve. The 2s10s curve dropped below 69bps and has now flattened for 8 sessions in a row which is the longest run since November 2015. The 5s30s curve also fell below 79bps and both are at 10 year lows. Clearly rates markets are telling us something about the prospect of the tax bill as it stands so it’ll be interesting to see if that changes when we see the Senate version.

Jumping to the overnight news now where most of the headlines are focused on Trump’s address at the National Assembly in Seoul. The President said that North Korea’s Kim has turned the nation into “a hell that no person deserves” and called for more help from Russia and China, noting “…to those nations that choose to ignore this threat…the weight of this crisis is on your conscience”. The words appear in stark contrast to a much calmer rhetoric from Trump about 24 hours ago. The President is scheduled to visit China next where he is due to have a private dinner with President Xi.

Markets in Asia appear to have largely ignored Trump’s comments overnight though with the Kopsi (+0.19%), ASX 200 (+0.13%) , Shanghai Comp (+0.38%) and Hang Seng (+0.30%) up slightly and the Nikkei (-0.19%) currently the only index in the red. After the bell in the US, Snap Inc. dropped 17% following its’ softer than expected 3Q result and that appears to be weighing on US equity futures.

Moving over to the ECB now where there was a bit of interest in a Bloomberg story yesterday which suggested that three significant ECB policymakers had pushed at last month’s policy meeting to link the overall level of monetary stimulus (rather than just asset purchases) with the outlook for inflation. The article highlighted that the three policy makers were Board member Coeure, Bundesbank President Weidmann and Bank of France Governor Villeroy de Galhau. Earlier in the month, Bloomberg reported that Coeure didn’t oppose having an open-ended QE, but hopes “this will be the last extension”.

Staying with the ECB, yesterday we heard from President Draghi who spoke on banks and bad debts. He noted that European banking supervision “has been instrumental in building a stronger banking sector” and while non-performing loan levels have been coming down, from 7.5% of loans in early 2015 to 5.5% now, “the problem is not yet solved”.

Prior to this, ECB board member Sabine Lautenschlaeger noted “I would have liked a clear exit (for QE) and a different decision” in the October ECB meeting, perhaps in part as “for (her) that was ok to say (as) we can…now move gradually… out of non-standard measures, as the monetary policy stance will still be very accommodative and very expansionary”. On inflation, Lautenschlaeger said that “I am very confident that inflation will pick up and that in the medium term… we will achieve our goal”. Elsewhere on banks, she noted profitability is low for many banks and that they need to diversify their sources of revenue and seek a sustainable business model, but “all banks have to adapt to more stringent rules…they come at a cost, but in the long run, their benefits are greater”. Finally, the head of Supervision at the ECB Daniele Nouy noted that 50 banks have discussed their Brexit business relocation plans with authorities in the EU bloc.

Over at the Fed, new Chief of Bank Regulation Randal Quarles didn’t give too much away in his public debut. He noted that in terms of regulation, “everything is up for a fresh look” and that “in a very short period of time”, the Fed will be looking for ways to make the regulatory process more transparent. Further, since starting at the Fed, he has found ‘quite an openness” for “taking a fresh look at regulation”. Elsewhere, Democratic Senator Tester noted members of the Senate Banking Committee are “getting very close” to agreeing on a bill to ease regulation on financial institutions.

Away from the markets, OPEC revealed in its annual report yesterday that it now expects North American shale output to jump to 7.5m barrels per day in 2021, which is c.56% higher than its forecasts made last year, in part as OPEC’s output cuts have supported an oil price recovery that should help the US producers. OPEC and its partners are scheduled to meet on 30th November to decide whether or not to extend the oil production cuts from March 2018. WTI oil dipped -0.26% yesterday and is trading marginally lower this morning.

Before we look at the day ahead, it was a fairly light day for economic data yesterday but for completeness we note that in the US, September JOLTS job openings were in line at 6,093k (vs. 6,075k expected), while consumer credit grew stronger than expected at US$20.8bln (vs. US$17.5bln).

In Germany, the September IP was below expectations at -1.6% mom (vs. -0.9%) and 3.6% yoy (vs. 4.5% expected), with production of capital goods and energy weighing on growth. Notably, growth in 3Q remained reasonably sound at 0.9% qoq. In Europe, both the Eurozone and Italian September retail sales beat expectations, coming in at 0.7% mom (vs. 0.6% expected ) and 0.9% mom (vs. 0.2 expected) respectively. Over in the UK, the October Halifax house price index was broadly in line at 0.3% mom (vs. 0.2% expected) and 4.5% yoy. Elsewhere, BRC reported same-store retail sales fell 1.0% yoy in October, which is the worst result since March.

Looking at what appears to be a fairly light day ahead, BoJ meeting minutes from the October meeting are due this evening while Germany’s Merkel speaks this morning and the BoE’s Kohn speaks around lunchtime. With little in  the way of other data, expect the US tax developments to remain a focus along with President Trump’s trip around Asia.

3. ASIAN AFFAIRS

i)Late TUESDAY night/WEDNESDAY morning: Shanghai closed UP 1.89 points or .06% /Hang Sang CLOSED DOWN 86.74 pts or 0.30% / The Nikkei closed DOWN 23.78 POINTS OR 0.10%/Australia’s all ordinaires CLOSED UP 0.03%/Chinese yuan (ONSHORE) closed UP  at 6.6288/Oil DOWN to 56.93 dollars per barrel for WTI and 63.48 for Brent. Stocks in Europe OPENED  RED  .  ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.6288. OFFSHORE YUAN CLOSED WEAKER TO THE ONSHORE YUAN AT 6.6356  //ONSHORE YUAN  STRONGER AGAINST THE DOLLAR/OFF SHORE WEAKER TO THE DOLLAR/. THE DOLLAR (INDEX) IS WEAKER AGAINST ALL MAJOR CURRENCIES. CHINA IS  VERY HAPPY TODAY.

3a)THAILAND/SOUTH KOREA/NORTH KOREA

NORTH KOREA//SOUTH KOREA

3b) REPORT ON JAPAN

 

3C   CHINA REPORT.

GERMANY/DEUTSCHE BANK

Not good for the world’s largest derivative bank:  their trading revenue drops 30% and now in a desperate scramble for profit they are trying to ramp up their loan business to which there is nobody

(courtesy zerohedge)

5. RUSSIA AND MIDDLE EASTERN AFFAIRS

IRAN/SAUDI ARABIA/USA

Iran slams Saudi Arabia on the ballistic attack on the Saudi Airport.  They claim Iran had nothing to do with it.

(courtesy zerohedge)

Iran Slams Saudi, US Claims It Ordered Ballistic Missile Attack From Yemen

On Tuesday Iran slammed Saudi and US claims that it was supplying Yemen’s Houthi rebels with advanced ballistic missiles that Saudi Arabia says targeted Riyadh international airport on Saturday – which would be a violation of a UN resolution which ensures conformity to the Iran nuclear deal.

Iran’s state-run IRNA news cited a letter sent to the UN Security Council signed by Iranian ambassador Gholamali Khoshroo, saying that Iran “categorically” rejects Saudi Arabia’s “baseless and unfounded accusations and considers it as destructive, provocative and a ‘threat to use of force”’ against a UN member state in defiance of the UN charter. Iran’s foreign minister further called the Saudi claims “contrary to reality and dangerous”.

Iran’s state-run PressTV file photo purporting to show a missile being fired from the direction of Yemen toward Saudi Arabia earlier during the conflict. 

Though Saudi Arabia has mounted an aggressive aerial bombing campaign of deeply impoverished and disease-ridden Yemen for over the past two years, killing and wounding tens of thousands of civilians, it is Iran that is coming under intense pressure this week. Yesterday Saudi Arabia charged its regional rival Iran with “an act of war” while stating through its military coalition executing Yemen operations that, “Iran’s role and its direct command of its Houthi proxy in this matter constitutes a clear act of aggression that targets neighboring countries, and threatens peace and security in the region and globally.”

However, the Iranian ambassador’s letter to the UN responded directly to the charges with, “Such provocative statements by the Saudis are nothing but an attempt to shift the blame and to distract attention from its war of aggression against Yemen.” Other Iranian officials, according to various reports, called the Saudi claims “fake news”.

Saudi Arabia has cast itself as the victim of external Iranian and pro-Shia plotting after its internal weekend of chaos which included a missile attack from Yemen, the deaths of two princes and other high officials within a mere 24 hours, and an aggressive crackdown against dissent in the royal family which saw close to a dozen princes placed under house arrest. While lashing out at Iran’s supposed campaign of destabilization in Yemen and in the region, it appears that the Saudis are set to step up proxy skirmishes with Iran across the Middle East, possibly with the support of regional allies.

Predictably, the US immediately backed Saudi claims of direct Iranian involvement in the Yemeni conflict while citing no specific evidence. US Ambassador to the UN Nikki Haley pointed to a prior missile fired in July which she said was an Iranian Qiam, and likened the previous attack with Saturday’s missile launch, saying it “may also be of Iranian origin,” and added that the ballistic missiles were not “a type of weapon that had not been present in Yemen before the conflict.”

Haley further claimed that Iran’s Islamic Revolutionary Guard Corp‎s had violated UN resolutions on Yemen and Iran, and said, “We encourage the United Nations and international partners to take necessary action to hold the Iranian regime accountable for these violations.”

Why don’t these congresspeople want to talk about the war in Yemen?

Above: Why is Yemen ignored in US politics? The US itself has been an integral part of the coalition (also including Bahrain, Kuwait, UAE, Egypt, Sudan, and with the UK as a huge supplier of weapons) fighting Shia Houthi rebels, which overran Yemen’s north in 2014. Saudi airstrikes on the impoverished country, which have killed many thousands of civilians and displaced tens of thousands, have involved the assistance of US intelligence and use of American military hardware.

Regardless of the degree to which Iran may or may not be involved in advising and assisting Houthi rebels, it is astounding that in the rare moments that US officials actually make reference to the humanitarian disaster in Yemen, it is nebulous “Iranian agents” that are blamed even while American and British bombs are dropped from Saudi-piloted jets on a civilian population.

Saudi Arabia has in recent years managed to use the UN to protect and enhance its image when it comes to questions of both domestic human rights abuses and rampant war crimes in Yemen. Absurdly, the autocratic country which has Wahhabi Islam for its official state religion continues to serve its 3-year term on the UN Human Rights Council.

But it appears that for now that the Saudi “but Iran did it” line is enough to satisfy Nikki Haley and the US administration.

END

A must read…the real reason for the Saudi conflicts in the middle east:  gasoline as Saudi is desperate to stop Iranian gas coming from Qatar through Syria onto Lebanon and then through Europe.  Saudi must stop the Shiite crescent and that is why they enlisted the help of Israel who will side with them along with the USA

(courtesy Golem/XIV/blog)

LEBANON

Lebanon – The Next Front In The Great Gas War

Via Golem XIV’s blog,

The Great Gas War has already two distinct fronts: The now relatively quiet Northern Front in Ukraine and the Southern Front in Syria in which the Western empire has been losing. It looks to me that Lebanon is being targeted as the next front, where the West hopes its loses might be recouped.

Yesterday, November 6th,  Reuters reported,

Saudi Arabia said on Monday that Lebanon had declared war against it because of attacks against the Kingdom by the Lebanese Shi‘ite group Hezbollah.

This comes after Israel, Saudi’s long time though largely un-offical best friend in the region,  has been very publicly preparing to renew its own war with Lebanon – or more accurately with Hezbollah.  As the American news journal Newsweek put it recently,

ISRAEL PREPARES FOR ANOTHER WAR WITH HEZBOLLAH AS IDF PRACTICES LEBANON INVASION.

Why now and why Lebanon?  Well the rulers of Saudi, a Sunni dominated country, will tell us that it is because Hezbollah is a Shia terrorist organisation. “Hezbollah” literally means the “Party of Allah” or “Party of God”.  Saudi Gulf affairs minister Thamer al-Sabhan yesterday pointedly referred to Hezbollah as, “the Lebanese Party of the Devil”.  Saudi is not alone of course, Hezbollah has also been listed as a terrorist organisation by America, Israel, the Arab League, the UK and the EU. It is also, however, part of the popular government of Lebanon having seats in its parliament.

I suggest, however, a powerful reason that a new war with Hezbollah may be in the offing is because Lebanon is the next link in any gas pipeline that could potentially bring Iranian Gas to Europe. That was the reason the West decided to “liberate” the Syrian people and it will be why they decide to enforce the same salvation upon the people of Lebanon. Having failed to liberate the Syrians, Saudi, the West, its Sunni Gulf allies and Israel will now see if they can succeed in blocking any Iranian gas ambitions by liberating the Lebanese from their own government.  I would not be surprised to hear quite soon from opposition groups vocally denouncing the government or at least Hezbollah. I expect spokes people from those groups to suddenly get a global platform along-side American and regional supporters such as Saudi.

When I look at Saudi I can’t help but notice that it has , all in a short space of time, begun wars in neighbouring Yemen and Syria, and declared first Qatar and now Lebanon supporters of terror if not actually themselves terrorists. Saudi has gone from a nation surrounded by allies or at least states with whom it had basic diplomatic relations, to a nation surrounded by enemies.  It begins to remind me of Israel in that respect.

Gas of course is not the be all and end all. In many ways it is a surface marker, the means for regional and global struggles for political power and influence.  For Saudi it is the basis of its struggle for regional supremacy with Qatar. For America it is the regional marker for its proxy struggle with Russia for political dominance and for control over gas supplies to Europe.  America has sided with Saudi. Russia and China have sided with Qatar.  Qatar struck a decisive blow for dominance and for a new Qatar focused power structure when it opened the region’s only clearing house for settlement of Gas contracts in Yuan.

I see the political turmoil inside Saudi as a struggle between those who see the House of Saud’s only hope for a future to be to remain firmly aligned with America and therefore by extension, with Israel, versus those who might consider switching or at least splitting their allegiance so as to move closer to Russia/China. A move which might be correct but which would concede to Qatar some large portion of what has been up till now Saudi’s pre-eminence.

Wars in Yemen, Syria and soon Lebanon make the divide between these two possible futures for The House of Saud, very sharp.

For Israel it will mean war and troops on the ground. America will certainly help in the air but Israel will shed blood on the ground.

What will Russia do? I doubt it will put troops into Lebanon. But I could very easily see it extending in to Lebanon the air support it has deployed in Syria. I could see Iran being tempted to send troops or at least ‘advisors’ or perhaps just ‘allow’ zealots who want to go, to do so. And that itself may be part of what some in America would like – tempt Iran into lending support and then declare anew that Iran is, pointing at new evidence,  a state sponsor of international terror.  America has desired a confrontation with Iran for a long time and want a new excuse.

The Great Gas War has not finished. I suggest it is about to open a new front. A front that could ignite a wider conflict.

end

Now we find the real motive behind the Saudi purge:  800 billion USA in confiscated assets

(courtesy zerohedge)

Real Motive Behind Saudi Purge Emerges: $800 Billion In Confiscated Assets

From the very beginning, there was something off about Sunday’s unprecedented countercoup purge unleashed by Mohammad bin Salman on alleged political enemies, including some of Saudi Arabia’s richest and most powerful royals and government officials: it was just too brazen to be a simple “power consolidation” move; in fact most commentators were shocked by the sheer audacity, with one question outstanding: why take such a huge gamble? After all, there was little chatter of an imminent coup threat against either the senile Saudi King or the crown prince, MbS, and a crackdown of such proportions would only boost animosity against the current ruling royals further.

Things gradually started to make sense when it emerged that some $33 billion in oligarch net worth was “at risk” among just the 4 wealthiest arrested Saudis, which included the media-friendly prince Alwaleed.

One day later, a Reuters source reported that in a just as dramatic expansion of the original crackdown, bank accounts of over 1,200 individuals had been frozen, a number which was growing by the minute. Commenting on this land cashgrab, we rhetorically asked “So when could the confiscatory process end? As we jokingly suggested yesterday, the ruling Saudi royal family has realized that not only can it crush any potential dissent by arresting dozens of potential coup-plotters, it can also replenish the country’s foreign reserves, which in the past 3 years have declined by over $250 billion, by confiscating some or all of their generous wealth, which is in the tens if not hundreds of billions. If MbS continues going down the list, he just may recoup a substantial enough amount to what it makes a difference on the sovereign account.”

Then an article overnight from the WSJ confirmed that fundamentally, the purge may be nothing more than a forced extortion scheme, as the Saudi government – already suffering from soaring budget deficits, sliding oil revenues and plunging reserves – was “aiming to confiscate cash and other assets worth as much as $800 billion in its broadening crackdown on alleged corruption among the kingdom’s elite.

As we reported yesterday, the WSJ writes that the country’s central bank, the Saudi Arabian Monetary Authority, said late Tuesday that it has frozen the bank accounts of “persons of interest” and said the move is “in response to the Attorney General’s request pending the legal cases against them.” But what is more notable, is that while we first suggested – jokingly – on Monday that the ulterior Saudi motive would be to simply “nationalize” the net worth of some of Saudi Arabia’s wealthiest individuals, now the WSJ confirms that this is precisely the case, and what’s more notably is that the amount in question is absolutely staggering: nearly 2x Saudi Arabia’s total foreign reserves!

As the WSJ alleges, “the crackdown could also help replenish state coffers. The government has said that assets accumulated through corruption will become state property, and people familiar with the matter say the government estimates the value of assets it can reclaim at up to 3 trillion Saudi riyal, or $800 billion.”

While much of that money remains abroad – and invested in various assets from bonds to stocks to precious metals and real estate – which will complicate efforts to reclaim it, even a portion of that amount would help shore up Saudi Arabia’s finances.

A prolonged period of low oil prices forced the government to borrow money on the international bond market and to draw extensively from the country’s foreign reserves, which dropped from $730 billion at their peak in 2014 to $487.6 billion in August, the latest available government data.

Confirming our speculation was advisory firm Eurasia Group, which in a note said that the crown prince “needs cash to fund the government’s investment plans” adding that “It was becoming increasingly clear that additional revenue is needed to improve the economy’s performance. The government will also strike deals with businessmen and royals to avoid arrest, but only as part of a greater commitment to the local economy.”

Of course, there is a major danger that such a draconian cash grab would result in a violent blowback by everyone who has funds parked in the Kingdom. To assuage fears, Saudi Arabia’s minister of commerce, Majid al Qasabi, on Tuesday sought to reassure the private sector that the corruption investigation wouldn’t interfere with normal business operations. The procedures and investigations undertaken by the anticorruption agency won’t affect ongoing business or projects, he said. Furthermore, the Saudi central bank said that individual accounts had been frozen, not corporate accounts. “It is business as usual for both banks and corporates,” the central bank said.

However, this is problematic: first, not only is the list of names of detained and “frozen” accounts growing by the day…

The government earlier this week vowed that it would arrest more people as part of the corruption investigation, which began around three years ago. As a precautionary measure, authorities have banned a large number of people from traveling outside the country, among them hundreds of royals and people connected to those arrested, according to people familiar with the matter. The government hasn’t officially named the people who were detained.

… but the mere shock of a move that would be more appropriate for the 1950s USSR has prompted crushed any faith and confidence the international community may have had in Saudi governance and business practices.

The biggest irony would be if from this flagrant attmept to shore up the Kingdom’s deteriorating finances, a domestic and international bank run emerged, with locals and foreign individuals and companies quietly, or not so quietly, pulling their assets and capital from confiscation ground zero, in the process precipitating the very economic collapse that the move was meant to avoid.

Judging by the market reaction, which has sent Riyal forward tumbling on rising bets of either a recession, or devaluation, or both, this unorthodox attempt to inject up to $800 billion in assets into the struggling local economy, could soon backfire spectacularly.

Meanwhile, for those still confused about the current political scene in Saudi Arabia, here is an infographic courtesy of the WSJ which explains “Who Has Been Promoted, Who Has Been Detained in Saudi Arabia

6 .GLOBAL ISSUES

7.OIL ISSUES

USA oil production jumps to record highs; Oil falls

(courtesy zerohedge)

‘Take That OPEC’ – WTI Slides As US Crude Production Jumps To Record High

WTI/RBOB extended losses post-API data overnight, but DOE data sparked some algo chaos as a surprise crude build (+2.24mm vs -2.45mm exp) was offset by a bigger than expected gasoline draw (exactly opposite what API reported). In addition, US crude production jumped to a new all-time high – take that OPEC!

API

  • Crude -1.562mm (-2.45mm exp)
  • Cushing +812k
  • Gasoline +520k (-1.85mm exp)
  • Distilates-3.133mm

ADOEPI

  • Crude +2.24mm (-2.45mm exp)
  • Cushing +720k
  • Gasoline -3.31mm (-1.85mm exp)
  • Distilates -3.359mm

Last night’s API data showed smaller crude draw and a surprise gasoline build, but DOE surprised with a big crude build and biugger gasoline draw (and a notable build in Cushing stocks)…

Production has normalized back at cycle highs as storm effects fade, surging to new cycle highs in the last week

And total US Crude output just hit a new record high…

WTI was back below $57 and RBOB below $1.80 ahead of the DOE data, sinking after last night’s surprise gasoline build

“If the EIA data disappoints then it could take further steam off the market,” says Jan Edelmann, analyst at HSH Nordbank.

end

8. EMERGING MARKET

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

Euro/USA   1.1591 DOWN .0009/ 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  RED

USA/JAPAN YEN 113.58 DOWN 0.169(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 1.3107 DOWN .0065 (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 1.2742 DOWN .0020(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 FELL by 9 basis points, trading now ABOVE the important 1.08 level  FALLING to 1.1591; / Last night the Shanghai composite CLOSED UP 1.89 POINTS OR .75%      / Hang Sang  CLOSED DOWN 86.74 POINTS OR 0.30%   /AUSTRALIA  CLOSED UP 0.03% / EUROPEAN BOURSES OPENED  RED 

The NIKKEI: this TUESDAY morning CLOSED DOWN 23.78 POINTS OR .10% 

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

2/ CHINESE BOURSES / : Hang Sang CLOSED DOWN 86.74 POINTS OR 0.30%  / SHANGHAI CLOSED UP 1.89 POINTS OR .06%    /Australia BOURSE CLOSED UP 0.03% /Nikkei (Japan)CLOSED DOWN 23.78 POINTS OR 0.10%

INDIA’S SENSEX IN THE RED

Gold very early morning trading: 1280.65

silver:$17.06

Early WEDNESDAY morning USA 10 year bond yield:  2.307% !!! DOWN 1 IN POINTS from TUESDAY night in basis points and it is trading JUST BELOW resistance at 2.27-2.32%. (POLICY FED ERROR)

The 30 yr bond yield  2.768 DOWN 1 IN BASIS POINTS  from TUESDAY night. (POLICY FED ERROR)

USA dollar index early WEDNESDAY morning: 94.91 DOWN 1 CENT(S) from YESTERDAY’s close. 

This ends early morning numbers  TUESDAY MORNING

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And now your closing WEDNESDAY NUMBERS  \1 PM

Portuguese 10 year bond yield: 2.007% UP 7 in basis point(s) yield from TUESDAY 

JAPANESE BOND YIELD: +.026%  DOWN 1/2  in   basis point yield from TUESDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.485% UP 8  IN basis point yield from TUESDAY 

ITALIAN 10 YR BOND YIELD: 1.746 UP 4 POINTS  in basis point yield from TUESDAY 

the Italian 10 yr bond yield is trading 26 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: +.326% DOWN 0 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 1.1593 DOWN ,0008 (Euro DOWN 8 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 113.62 DOWN 0.123(Yen UP 12  basis points/ 

Great Britain/USA 1.3106 DOWN  0.0065( POUND DOWN 65 BASIS POINTS)

USA/Canada 1.2725 DOWN.0038 Canadian dollar UP 38 Basis points AS OIL ROSE TO $56.97

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This afternoon, the Euro was DOWN 8 to trade at 1.1593

The Yen ROSE to 113.62 for a GAIN of 12  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 65 basis points, trading at 1.3106/ 

The Canadian dollar ROSE by 38 basis points to 1.2725  WITH WTI OIL RISING TO :  $56.95

The USA/Yuan closed AT 6.6280
the 10 yr Japanese bond yield closed at +.026% DOWN 1/2  IN  BASIS POINTS / yield/ 

Your closing 10 yr USA bond yield UP 1  IN basis points from TUESDAY at 2.316% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic  USA 30 yr bond yield: 2.779 UP 1 in basis points on the day /

Your closing USA dollar index, 94.85  DOWN 6 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 UP  16.61 POINTS OR 0.22%
German Dax :CLOSED UP 3.15 POINTS OR 0.02%
Paris Cac  CLOSED DOWN 9.21 POINTS OR 0.17% 
Spain IBEX CLOSED DOWN 2.20 POINTS OR 0.02%

Italian MIB: CLOSED DOWN 131.29 POINTS OR 0.57% 

The Dow closed up 6,13 POINTS OR .03%

NASDAQ WAS closed DOWN 21.33 Points OR 0.32%  4.00 PM EST

WTI Oil price;   56.97   1:00 pm; 

Brent Oil: 63.97  1:00 EST

USA /RUSSIAN ROUBLE CROSS:  59.11 DOWN  26/100 ROUBLES/DOLLAR (ROUBLE HIGHER BY 26 BASIS PTS)

TODAY THE GERMAN YIELD FALLS TO  +.326%  FOR THE 10 YR BOND  1.00 PM EST EST

END

This ends the stock indices, oil price, currency crosses and interest rate closes for today 4:30 PM

Closing Price for Oil, 4:30 pm/and 10 year USA interest rate:

WTI CRUDE OIL PRICE 4:30 PM:$56.80

BRENT: $63.47

USA 10 YR BOND YIELD: 2.330%  (ANYTHING HIGHER THAN 2.70% BLOWS UP THE GLOBE)

USA 30 YR BOND YIELD: 2.789% 

EURO/USA DOLLAR CROSS:  1.1595 DOWN .0005

USA/JAPANESE YEN:113.88   up  0.136

USA DOLLAR INDEX: 94.85 DOWN 6 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.3117 : down 53 POINTS FROM LAST NIGHT  

Canadian dollar: 1.2725 UP 38 BASIS pts 

German 10 yr bond yield at 5 pm: +0.326%

END

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

TRADING IN GRAPH FORM FOR THE DAY

Junk Bonds Dump To 3-Month Lows Amid Longest Curve Flattening Streak In 6 Years

Ignoring the surge in junk bond risk and collapse of the yield curve, stock investors were overheard saying…

Gold remains the post-Saudi-purge winner…

Stocks rebounded today. The Dow has nopw beenup 7 days in a row thanks to today’s last second ramp…

But despite small caps bounce, they remain red on the week… as Dow, S&P, and Nasdaq scramble green

VIX was once again driven back below 10 to ensure a green close for The Dow etc…

The Media complex was busy today with rumors and headlines surrounding the AT&T, Time-Warner deal and the removal of CNN…

FANG Futures began trading today and FANG stocks ended lower but dip-buyers were evident…

Credit Markets continue to collapse… HYG at 3 month lows…

HYG (the high yield bond ETF) has seen outflows for 8 of the last 10 days)

With stocks and bonds notably divergent…

Notably the last few days have seen both bonds and stocks bid (just as both were sold in late Oct)

Treasury yields rose modestly today…

The Treasury yield curve continues to flatten. 5s30s is now down 10 days in a row – the longest flattening streak since March 2011 and Dec 2005 – if it goes 11 days that will be an all-time record.

And even banks are now starting to pay attention…

The Dollar Index drifted lower again, hovering at pre-payrolls levels…

Chaos in crude markets today as the DOE data sparked WTI selling, RBOB buying but then the machines took over and pumped’n’dumped it…

Gold and Silver managed to hold onto gains after selling off non-stop once Europe closed…

Finally, Bitcoin saw some crazy moves today after surging on the suspension the SegWit2x hard fork, then collapsing and then jumping back higher again – all on heavy volume…

END

Now the senate is considering a one year delay in the cutting of the corporate rate to 20%. The markets do not like this and down goes the dollar ”

(courtesy zerohedge)

Tax Bill Fiasco: Senate Considering 1 Year Corporate Tax Cut Delay; Dollar Slides

Suddenly Republican tax reform is looking deader than a door  nail.

According to the Washington Post, which cites “ four people familiar with a draft of the legislation ” not only is there little to no compromise on the way forward, but the only thing Senate Republicans leaders can agree on is to punt the centerpiece of the GOP tax plan by at least a year, and are considering a one-year delay in the implementation of a major corporate tax cutThis change would lower the corporate tax rate from 35 percent to 20 percent in 2019, not 2018 as currently constructed by a House GOP bill. And while the delay would save $100 billion in much needed funds, it would be met with resistance from Trump, who wants the tax cuts implemented immediately.

In any case, to ensure that companies don’t postpone major investment decisions and wait for the lower rate in 2019, Senate Republicans are considering allowing companies to immediately deduct capital investments in 2018 from their taxable income, the WaPo sources said.

The news comes amid the expected growing opposition in the Senate to the current bill. One day after Trump nemesis John McCain said tax reform is “dead on arrival”, on Tuesday, Sen. Ted Cruz said that the House tax bill could end up raising taxes on some middle-class Americans, and he pushed for assurances that the Senate bill would lower everyone’s taxes. Meanwhile, senators Marco Rubio and Mike Lee are pushing for an expansion of the child tax credit beyond what was introduced in the House. They have called for raising the child tax credit from $1,000 to $2,000. The House bill would raised the credit to $1,600.

Furthermore, the WaPo adds, that significant differences are also expected on the individual income-tax provisions.

Senate negotiators are planning to eliminate the state and local tax deductions that families take, going further than the House bill. They are also expected to retain roughly seven income tax brackets, rather than the four the House has proposed.

Details could change ahead of a formal release of a bill this Thursday by the Senate Finance Committee.

There will be a number of other changes to the taxes that certain businesses pay and the way companies are taxed on overseas earnings. Senate negotiators aren’t planning to include a temporary $300 “family flexibility credit” contained in the House bill. It’s this credit, which would expire after five years, that has fueled criticism that the House bill would eventually lead to higher taxes for some middle class families.

Separately, Bloomberg reports that on Tuesday afternoon President Trump called into a meeting between Senate Democrats, National Economic Council Director Gary Cohn and White House Legislative Affairs Director Marc Short, Democratic Sen. Jon Tester tells reporters. Tester said that Trump spoke (maybe screamed would be a better description) for about 15 minutes by phone from Asia and insisted the rich will be hurt by the tax bill.

During the same meeting, Dem. Senator Sherrod Brown gave Cohn copies of two bills he wants in the tax package, including one that would boost income of those making $20k-$70k. Brown added that Trump said over the phone he liked the ideas in the bills Brown presented; “I don’t know if McConnell is not hearing what the president is saying or if McConnell is not paying attention,” Brown says.

Or maybe Trump just hasn’t heard yet that Senate Republicans, after failing to repeal Obamacare not too long, now plans to concede on the most important aspect of Trump’s proposed tax plan.

In any case, a decision on delaying the implementation of the corporate rate has not been made, the WaPol said. House Ways and Means Committee Chairman Kevin Brady (R-Texas), in writing his legislation, was considering having the corporate tax rate cut phase out after eight years but made a change the night before the bill was introduced to effectively make it permanent.

With the news of the potential delay hitting the market, the dollar in general, and the USD/JPY in particular was the first casualty and the pair was sold by leveraged accounts in Tokyo.

(courtesy zerohedge)

Another Delay: Senate Won’t Release Tax Bill On Thursday As Mnuchin Admits Corp Tax Cut Delay Likely

Yesterday, the dollar slumped and yields dropped after a WaPo report claimed that the corporate tax cut could – the core piece of GOP tax reform – would be delayed by up to a year, a clear indication that there may be irreconcilable differences in the Senate regarding tax reform. Then, moments ago, Axios confirmed as much, reporting that the Senate “won’t release its version of the GOP tax bill tomorrow”, citing a senior GOP aide. On Tuesday Mitch McConnell said that the bill would come out on Thursday. That said, the aide reportedly said “this wasn’t a delay, because the release of the Senate bill was always going to start after the House Ways and Means Committee finished marking up its bill.”

As Axios explains, the delaying introduction of the bill is problematic “because it not only gives off the impression that things aren’t going well (whether it’s true or not), but also removes one more day that could have been spent getting the caucus on board with the bill.”

Meanwhile, speaking on Bloomberg, Treasury Secretary Mnuchin said that the White House’s preference would be to start the corporate tax rate cut next year, which again implies a material probability of delay.

“Our strong preference is that the corporate tax rate starts next year. The longer we wait, the worse it is for the economy,” Mnuchin said in interview on Bloomberg TV.

Asked whether he rules out delaying corporate tax cuts: “Again, I’d just say, the president’s strong preference — he feels very strongly that he wants to start this right away. But having said that, we’ll have to look at the entire Senate package — I assume it’s just a money issue — as to how they’re moving the different pieces around”

“It’s not a philosophical issue; I’m sure they’d like to start this just as soon as they can”

Some other soundbites courtesy of Bloomberg:

  • MNUCHIN: STATE ELECTIONS DIDN’T CHANGE OUR TAX STRATEGY
  • MNUCHIN: WE’RE GOING THROUGH HEALTHY PROCESS ON TAXES ON CMTEES
  • MNUCHIN: PRESIDENT WOULD LIKE TO KILL HEALTH CARE MANDATE
  • MNUCHIN: KILLING HEALTH CARE MANDATE WOULD FREE UP LOT OF MONEY
  • MNUCHIN: HOUSE MOVE ON CARRIED INTEREST STEP IN RIGHT DIRECTION
  • MNUCHIN: WE’RE SENSITIVE TO NEED OF STATE TAX EXEMPTION
  • MNUCHIN: THERE ARE SHORT-TERM CONCERNS ABOUT FX IMPACT ON TRADE
  • MNUCHIN: PART OF DOLLAR STRENGTH REFLECTS U.S. ECONOMY
  • MNUCHIN: I DON’T THINK YELLEN HAS MADE DECISION ON STAYING

In the final update, CNBC reports that “the Senate tax plan is not expected to include a controversial 20 percent excise tax on imports by multinational companies, according to three people briefed on the issue.”

The tax is a critical revenue raiser in the House bill—worth about $155 billion over a decade—and applies to purchases by U.S. subsidiaries of multinational businesses from their foreign counterparts. Among the most vocal opponents of the new fee is the conservative advocacy group Heritage Action, which called it a “backdoor border adjustment tax.”

The fee covers both intangible goods such as intellectual property as well as consumer parts. But unlike the border adjustment tax—a proposal that Republicans have discarded—the transactions must occur within a single parent company. Business groups such as the Organization for International Investment also fear the tax could disrupt international supply chains and raise costs for multinational companies—and ultimately consumers.

“It’s an extraterritorial reach into global supply chains that were never part of the U.S. tax base,” OFII President Nancy McLernon said. “It will have a disproportionate impact on international companies that have made a deliberate decision to invest and create jobs in the United States.”

Last week, House Ways and Means Committee Chairman Kevin Brady defended the tax as a crucial to ensuring that companies do not shift profits overseas. He said that the border adjustment tax was abandoned months ago and that the excise tax in the current bill bears no resemblance to that proposal.

With so many moving parts and even more conflicting opinions, it will be surprising if a one day delay by the Senate is all it boils down to.

END

(courtesy Michael Snyder/Economic Collapse Blog)

The Economy Is Okay?! U.S. Retail Store Closings Hit New Record High As West Coast Homelessness Soars

Authored by Michael Snyder via The Economic Collapse blog,

If the U.S. economy is doing just fine, why have we already shattered the all-time record for retail store closings in a single year?

Whenever I write about our “retail apocalypse”, many try to counter my arguments by pointing out the growing dominance of AmazonAnd I certainly can’t deny that online shopping is on the rise, but it still accounts for less than 10 percent of total U.S. retail sales.  No, something bigger is happening in our economy, and it isn’t receiving nearly enough attention from the mainstream media.

Back in 2008, a plummeting economy absolutely devastated retailers and it resulted in an all-time record of 6,163 retail stores being closed that year.

So far in 2017, over 6,700 stores have been shut down and we still have nearly two months to go!  The following comes from CNN

More store closings have been announced in 2017 than any other year on record.

Since January 1, retailers have announced plans to shutter more than 6,700 stores in the U.S., according to Fung Global Retail & Technology, a retail think tank.

That beats the previous all-time high of 6,163 store closings, which hit in 2008 amid the financial meltdown, according to Credit Suisse (CS).

Just within the last week, we have learned that Sears is closing down another 60 stores, and Walgreens announced that it intends to close approximately 600 locations.

Overall, about 300 retailers have declared bankruptcy so far in 2017, and we are on pace to lose over 147 million square feet of retail spaceby the end of the year.

Oh, but it is all Amazon’s fault, right?

Meanwhile, mainstream news outlets are reporting that homelessness is “exploding” out on the west coast.

For instance, we are being told that there are “400 unauthorized tent camps” in the city of Seattle alone

Housing prices are soaring here thanks to the tech industry, but the boom comes with a consequence: A surge in homelessness marked by 400 unauthorized tent camps in parks, under bridges, on freeway medians and along busy sidewalks. The liberal city is trying to figure out what to do.

But I thought that the Seattle economy was doing so well.

I guess not.

Down in San Diego, they are actually scrubbing the sidewalks with bleach because the growing homeless population is spreading hepatitis A everywhere…

San Diego now scrubs its sidewalks with bleach to counter a deadly hepatitis A outbreak. In Anaheim, 400 people sleep along a bike path in the shadow of Angel Stadium. Organizers in Portland lit incense at an outdoor food festival to cover up the stench of urine in a parking lot where vendors set up shop.

Over the past two years, “at least 10 cities or municipal regions in California, Oregon and Washington” have declared a state of emergency because homelessness has gotten so far out of control.

Does that sound like a healthy economy to you?

The truth is that the financial markets have been doing great since the last financial crisis, but the real economy has never really recovered in any sort of meaningful way.

With each passing day, more Americans fall out of the middle class, and the homeless populations in major cities all over the nation continue to grow.

We truly are in the midst of a long-term economic collapse, and if we don’t find a way to fix things our problems will just continue to accelerate.

So don’t be fooled by the mainstream media.  They may be trying to convince you that everything is just wonderful, but that is not the reality that most people are facing at all.

*  *  *

Michael Snyder is a Republican candidate for Congress in Idaho’s First Congressional District, and you can learn how you can get involved in the campaign on his official website. His new book entitled “Living A Life That Really Matters” is available in paperback and for the Kindle on Amazon.com.

END

Quite a statistic: 1/3 of all students attending college drop out and many of those default on their student loans

(courtesy zerohedge)

About 33% Of Students Drop Out Of College; Here’s How Many Go On To Default On Their Student Debt

Roughly 70% of America’s bright-eyed and bushy-tailed high school seniors will go on to binge drink study at a 4-year college, but, to our complete shock, less than two-thirds of them will manage to graduate with a degree.  Even worse, 30% of the students will drop-out after just one year on campus.

Not surprisingly, a survey conducted recently by LendEDU found that college dropouts still manage to rack up an average of nearly $14,000 worth of student debt during their brief college careers and a staggering number of them go on to default on that debt in very short order.

LendEDU polled 1,000 respondents that had dropped-out of a four-year higher education institution and also held some amount of student loan debt. We wanted to find out how much student loan debt they owed when the walked away from college.

Respondents were given the ability to enter in an exact dollar amount when asked how much student loan debt they held when they made the choice to drop-out of school. After averaging together all 1,000 responses, we found that when the average college dropout finally gave up on college, they owed $13,929.65 in student loan debt.

LendEDU pegs the average student loan debt per graduated borrower figure at $27,975, so the aforementioned debt per dropout amount makes good sense. Under the assumption that most dropouts leave campus by the end of their second year, the debt per dropout figure is nearly half of the four-year debt per borrower figure of $27,975. That figure cut in half would equal $13,987.50, a tick above our debt per dropout figure of $13,929.65.

Nearly half of college dropouts interviewed by LendEDU admitted they’re not currently making payments.

Even worse, just over 35% of the students interviewed said they hadn’t made a single payment toward their student loans since dropping out of college…

…all of which resulted in nearly 50% of respondents saying they’re currently in default on their student loans.

Asked why they dropped out of college, roughly one-third of students cited “financial reasons”…financial reasons that presumably get much worse after they drop out of school and ruin their credit by defaulting on their student loans.

The plurality of college dropouts, 35.30 percent, cited “financial reasons” as the main reason for leaving their respective college campuses. Trailing closely behind was “social/family reasons,” which brought in 34 percent of the vote.

After those two options, there was a significant drop-off. ?12.90 percent of poll participants selected “other,” while 11 percent cited “health reasons,” and 5.40 percent dropped-out because of “academic reasons.” Finally, “legal reasons” was an answer option selected by only 1.40 percent of the respondents polled.

Digging further, we asked the 353 respondents that cited “financial reasons” as the main cause for dropping out this question: “More specifically, did you drop out of college because you didn’t want to borrow more student loan debt?”

Around three-fourths (74.79 pecent) of this sub-section of college dropouts responded “yes” to the question found above. Meanwhile, 25.21 percent of those who dropped-out because of financial troubles maintained that student loan debt had nothing to do with their monetary woes.

Of course, despite their lack of success their first time around, nearly two-thirds of college dropouts say they’re considering a second attempt at earning a college degree.  Moreover, we’re almost certain that their previous defaults will in no way hamper the appetite of banks that will be all too eager to throw even more taxpayer subsidized student loans at their “do-over” attempts…

About two-thirds, 64.30 percent, of the 1,000 college dropouts that participated in this poll intended on going back to college to finish up their degrees. Contrarily, 35.70 percent of the respondent poll stated they had no plans to enroll in classes again.

The fact that quite the clear majority of college dropouts with student debt are set on going back to colleges? speaks to both the regret in their original choices to drop-out and also the belief that a college degree will greatly aid in their ability to grow their future earning potentials.

…student loans that we’re sure these dropouts will take despite reporting overwhelming “regret” for taking their initial round of loans.

Oh well, these students have to pay for those binge drinking trip to Cancun somehow…not going is simply not an option.

END

Maui/Hawaii:

Citizens in Maui are outraged at a huge 52% spike in pension contributions to the public pension employee system after the government raised property taxes by a huge 30 million dollars

(courtesy zerohedge)

Pension Panic In Paradise: Maui Residents Outraged Over 52% Spike In Pension Contributions

Earlier this year, Maui County residents in the island state of Hawaii were somewhat less than ecstatic to learn that their property taxes were going to increase by approximately $29.7 million for fiscal 2018.  According to County Council member statements at the time, the additional funding was needed to help provide better public services for Maui residents.

That said, fast forward just a few months and it looks like a substantial portion of those tax increases won’t go to provide better public services for Maui residents at all but rather will be plowed into the state’s massively underwater pension fund.  As The Maui News points out today, Maui’s contributions to the state Employees’ Retirement System will surge 52% over just the next couple of years…and that’s if everything goes to plan.

“This is a massive, massive increase,” Williams said.

Maui County paid $31 million into the pension fund in fiscal 2017. But now, its payments will increase to approximately $34 million in fiscal 2018, $36 million in fiscal 2019, $42 million in fiscal 2020 and $47 million in fiscal 2021.

This amounts to a total of $36 million in extra payments by Maui County over the next four years alone — and its contributions are set to remain just as high every year afterward.

Williams said the extra payments were needed to help the public pension system avert a crisis in unfunded liabilities, currently estimated at about $12.4 billion.

Pension

Meanwhile, as we’ve pointed out multiple times before, the victims of Hawaii’s ponzi failure will inevitably be the kids as funding gets diverted from public schools and into the pockets of a few retired public employees.

Williams is correct that the increased payments will help the state pay down its unfunded liabilities and return to being able to meet its current obligations to state and county employee retirees. But a new crisis has begun — the crisis of taxpayers feeling the pressure to bail out the system.

Williams acknowledged that the counties would be under more financial pressure.

“We know over time it really crowds out other goods and social services that are required, whether it’s education or roads or hospitals, or you name it,” he said. “There are limited revenues available, and these are commitments that have been made and need to be paid.”

But, maybe there’s a better way…we happen to know of a guy who recently paid $100 million for a large chunk of Kauai and is eager to settle a dispute with locals over his massive border wall (see: Protesters Plot “Border Wall” Rally For Tomorrow…At Zuckerberg’s Sprawling $100mm Hawaiian Estate)…perhaps a 1x gift to the Hawaii retirement ponzi is the perfect solution?

Zuck

end

Repealing Obamacare individual mandate would save the USA $338 billion due to less subsidies. However they need to find more money elsewhere to fund the tax cuts.  This will not happen:

(courtesy zerohedge)

Repealing Obamacare’s Individual Mandate Would Save $338 Billion

With Republicans scrambling to find every possible dollar to pay for Trump’s “massive” tax reform package, on Wednesday morning a new analysis by the CBO calculated that repealing ObamaCare’s individual mandate – an idea that had been floated previously by Trump – would save $338 billion over 10 years. CBO previously estimated repeal would save $416b over 10 years due to reduced use of Obamacare subsidies, demonstrating once again how “fluid” government forecasts are.

The report was released as the Senate prepares to unveil its own version of the Tax reform bill amid growing GOP dissent, and comes as some Republicans are pushing for repealing the mandate within tax reform, as a way to help pay for tax cuts. Still, as The Hill reports, that idea has met resistance from some Republican leaders who do not want to mix up health care and taxes. Previously the CBO had come under fire on Tuesday from Sen. Mike Lee (R-Utah), who slammed the agency after Sen. Bill Cassidy (R-La.) told The Hill that he had been informed that the CBO was changing its analysis of the mandate to find significantly less savings.

Just as notable was the CBO’s announcement that it was changing the way it analyzes the mandate, which Republicans suspect would show less government savings and fewer people becoming uninsured as a results.

“The agencies are in the process of revising their methods to estimate the repeal of the individual mandate,” he said. “However, because that work is not complete and significant changes to the individual mandate are now being considered as part of the budget reconciliation process, the agencies are publishing this update without incorporating major changes to their analytical methods.”

Sen. Tom Cotton, R-Ark., who has been one of the most vocal advocates of including repeal of the individual mandate in the tax bill, has touted the savings that would come as a result. His team said it is confident that the scoring will include similar numbers to previous reports. “We’re confident the CBO estimate will still show a substantial — north of $300 billion — savings for tax reform,” Caroline Tabler, spokeswoman for Cotton, told the Washington Examiner in an email.

CBO has been criticized for years for its analyses on the effects of the individual mandate. Republicans have charged that the mandate isn’t as effective as CBO concludes and have said they want to see it repealed. Some Obamacare supporters also have said it should be stronger by becoming more expensive or should be more heavily enforced.

While the CBO calculation is a boost to Republicans who want to repeal the mandate in tax reform, because it means there are still significant savings to be had from repealing the mandate, mandate repeal still faces long odds. Repealing the mandate – a broadly unpopular decision in many states – could also destabilize health insurance markets by removing an incentive for healthy people to enroll.

Earlier in the day, the CBO said that according to the Joint Committee on Taxation, the “Tax Cuts and Jobs Act” would increase deficits over the next decade by $1.4 trillion, which is good enough to slip under the $1.5 trillion limit required for reconciliation. The CBO did however add that the additional debt service would boost the 10-year increase in deficits to $1.7 trillion.

This sure looks like political sabotage as Hillary’s Fusion GPS operative met with Russian lawyer Natalia Veselnitskaya one hour before and one hour after the Trump Jr meeting

(courtesy zerohedge)

Sabotage?: Hillary’s Fusion GPS Operative Met With Russian Lawyer Before And After Trump Jr. Meeting

Earlier this summer we were all led to believe that the now-infamous meeting between Donald Trump Jr. and Russian lawyer Natalia Veselnitskaya was undeniable evidence that the Trump campaign had colluded with the Russian government to effectively stage a coup by preemptively blocking Hillary from her rightful throne.  But, what if it was all just a setup?

According to a report from Fox Newsjust hours before Natalia Veselnitskaya sat down with Trump Jr., Paul Manfort and Jared Kushner at Trump Tower on June 9, 2016, she was with Fusion GPS co-founder and former Wall Street Journal reporter Glenn Simpson in a Federal Manhattan courtroom.  Adding to the mystery, Fox reports that the pair were together shortly after the Trump Jr. meeting as well. 

Of course, this is an intriguing new development because just a couple of months prior to these events, Fusion GPS was paid at least $1 million by Hillary’s campaign and the DNC to ‘prove’ that Trump was working with the Russians.  All of which begs the obvious question, was the whole Trump Jr. fiasco nothing more than a failed attempt at political sabotage by the Hillary campaign?

The co-founder of Fusion GPS, the firm behind the unverified Trump dossier, met with a Russian lawyer before and after a key meeting she had last year with Trump’s son, Fox News has learned. The contacts shed new light on how closely tied the firm was to Russian interests, at a time when it was financing research to discredit then-candidate Donald Trump.

The June 2016 Trump Tower meeting involving Donald Trump Jr. and Russian lawyer Natalia Veselnitskaya occurred during a critical period. At that time, Fox News has learned that bank records show Fusion GPS was paid by a law firm for work on behalf of a Kremlin-linked oligarch while paying a former British spy Christopher Steele to dig up dirt on Trump through his Russian contacts.

But hours before the Trump Tower meeting on June 9, 2016, Fusion co-founder and ex-Wall Street Journal reporter Glenn Simpson was with Veselnitskaya in a Manhattan federal courtroom, a confidential source told Fox News. Court records reviewed by Fox News, email correspondence and published reports corroborate the pair’s presence together. The source told Fox News they also were together after the Trump Tower meeting.

Meanwhile, not only were Simpson and Veselnitskaya together before the Trump Jr. meeting, as it turns out Fusion GPS was hired by BakerHostetler to represent Russian firm Prevezon in an asset forfeiture case, a firm which Veselnitskaya also represented and was the reason that she was in the U.S. in the first place.  To summarize, Fusion GPS and Veselnitskaya were effectively co-workers defending a Putin-linked Russian operative on trial in the U.S. for a massive $230 million money laundering fraud.

NBC News first reported that Veselnitskaya and Simpson were both at a hearing centered around another Fusion client, Russian oligarch Denis Katsyv. His company, Prevezon Holdings, was sanctioned against doing business in the U.S. for its alleged role in laundering more than $230 million. Fox News obtained audio records from that hearing in the U.S. Court of Appeals for the Second Circuit.

The wrongdoing had been uncovered by Russian lawyer and whistleblower Sergei Magnitsky, who was beaten to death in a Russian prison in 2009 after being arrested for probing Prevezon and other companies with ties to Russian President Vladimir Putin.

In December 2012, the Sergei Magnitsky Rule of Law Accountability Act was passed into U.S. law, freezing Russian assets and banning visas for sanctioned individuals. Fusion’s Simpson is believed to have been working with Veselnitskaya and Rinat Akhmetshin, a former Soviet counter-intelligence officer turned Russian-American lobbyist, to overturn the sanctions.

The Senate Judiciary Committee interviewed Simpson for more than 10 hours on August 22nd though a spokesman for the committee refused to comment on whether Simpson confirmed his contact with Veselnitskaya during the closed-door session.

Of course, as we’ve noted previously (see: Hillary Clinton Lied, Paid For “Trump Dossier”), the DNC and Clinton campaign hired Fusion GPS for over $1 million in April 2016 through lawyer Marc Elias, who was general counsel for the Clinton campaign. Fusion, in turn, paid Steele $168,000 for the dossier, memos from which were shared with the FBI in the summer of 2016.

So what say you?  Was it all just an innocent coincidence or political sabotage?

the White House is now moving to formally reverse the Obama Era detente with Cuba which will again restrict USA citizens from visiting the island
(courtesy zerohedge)

White House Moves To Formally Reverse Obama-Era Detente With Cuba

After months of blustery rhetoric and half measures, the White House is finally taking steps to undo another one of former President Barack Obama’s legacy-defining foreign-policy accomplishments.

The Washington Post reports that, in a landmark ruling, the Trump administration is reversing some of Obama detente with Cuba by cracking down on travel and business with the island.

Under the new rules, most individual visits to Cuba will no longer be allowed, and U.S. citizens will again have to travel as part of a licensed group, accompanied by a group representative. Americans will also be barred from staying at a long list of hotels and from patronizing restaurants, stores and other enterprises that the State Department has determined are owned by or benefit members of the Cuban government, specifically its security services.

Administration officials said that the new regulations, which go into effect Thursday, would not affect travel arrangements already made or contracts already signed, which are to be grandfathered in under existing law.

Trump was extremely critical of Obama’s Cuba policy during the campaign, but after taking office did relatively little to restrict the newly opened lines of trade and tourism opened up by Obama, who made it much easier for US tourists to visit the island, so long as they could justify the trip under a list of criteria issued by the Obama State Department.

Trump railed against Cuba during a speech he gave back in May, sparking speculation that he would threaten to punish Cuba unless it returns US fugitives like Assata Shakur, who received political asylum on the island after being convicted of killing a New Jersey state trooper and escaping from a US prison.

Trump was spurred to act over the summer after US media reported on a series of mysterious cyberattacks that targeted more than 20 US diplomats stationed in Havana, including an unusually large number of spies.

Trump expelled most of Cuba’s Washington-based diplomats, and recalled two-thirds of US personnel from Havana after blaming Cuba for not doing more to prevent the attacks, though the US has said there’s no evidence to suggest the attacks were orchestrated by the Cuban government.

But now that it seems like Trump is getting serious, expect more restrictions to follow as Trump follows through with other promises like barring US companies American from making deals with the Cuban military, which controls much of the state-run tourism industry.

END

Well that about does it for tonight

I WILL SEE YOU ON THURSDAY NIGHT

HARVEY

 

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3 comments

  1. rand clifford · · Reply

    Harvey, your intelligence and the way you display your knowledge…admirable. Exceptional. But there persists a grave problem.

    The Pilgrim’s Society stated many decades ago that they and other filthy fiatsters would: “…keep the price of silver low as a sow’s belly until hell freezes over.”

    Since it is state-sponsored concrete boots on the “paper price” of precious metals, in years we will probably see silver “skyrocket” to almost $20. Or will it be $3? The current state criminality is bedrocked…until it doesn’t matter anymore.

    Thank you for the years of speaking truth to the sewer (“power”). Admirable.

    Like

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