Nov 21/Gold rises by $5.10 and silver is up by 7 cents/a Monstrous 21,428 EFP’s transferred out of the comex and lands as a forward in London/Sara Carter; Proof of Clintons and Obama in Uranium One scandal/

GOLD: $1282.00  UP $5.10

Silver: $17.00 UP 7 cents

Closing access prices:

Gold $1280.70

silver: $16.97

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: $1287.34 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1280.10

PREMIUM FIRST FIX: $7.24

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SECOND SHANGHAI GOLD FIX: $1288.21

NY GOLD PRICE AT THE EXACT SAME TIME: $1279.95

Premium of Shanghai 2nd fix/NY:$8.26

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LONDON FIRST GOLD FIX: 5:30 am est $1280.00

NY PRICING AT THE EXACT SAME TIME: $1280.55

LONDON SECOND GOLD FIX 10 AM: $1283.30

NY PRICING AT THE EXACT SAME TIME. 1283.30

For comex gold:

NOVEMBER/

 NUMBER OF NOTICES FILED TODAY FOR NOVEMBER CONTRACT:  1 NOTICE(S) FOR 100 OZ.

TOTAL NOTICES SO FAR: 1053 FOR 105,300 OZ (3.375 TONNES)

For silver:

NOVEMBER

0 NOTICE(S) FILED TODAY FOR

nil OZ/

Total number of notices filed so far this month: 884 for 4,420,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $8198 OFFER /$8224 down $30.00 (MORNING)

BITCOIN : BID $8206 OFFER: $8235 // down $22 (CLOSING)

end

Let us have a look at the data for today

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In silver, the total open interest FELL BY A LARGELY ANTICIPATED 7611 contracts from 205,094 DOWN TO 197,483 WITH RESPECT TO YESTERDAY’S TRADING  WHICH SAW SILVER FALL  BY A CONSIDERABLE 45 CENTS AND FALL WELL BELOW THE HUGE $17.25 SILVER RESISTANCE.   WE HAD CONSIDERABLE LONG COMEX LIQUIDATION.  HOWEVER   WE WERE ALSO NOTIFIED THAT WE HAD QUITE A HUMONGOUS NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE : 2998 DECEMBER EFP’S WERE ISSUED ALONG WITH 0 EFP’S FOR MARCH FOR A TOTAL ISSUANCE OF 2998 CONTRACTS. (THE ISSUANCE FOR MARCH THAT WE HAVE SEEN THESE PAST FEW DAYS BOTHERS ME A LOT AS THIS IS SUPPOSE TO BE FOR EMERGENCY IN THE UPCOMING DELIVERY MONTH).  I GUESS WHAT THE CME IS STATING IS THAT THERE IS NO SILVER TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. THURSDAY WITNESSED  1078 EFP’S ISSUED FOR YESTERDAY.

RESULT: A HUGE SIZED RISE IN OI COMEX WITH THE 45 CENT PRICE FALL.  WE HAD CONSIDERABLE  COMEX LONGS  EXITED OUT OF THE COMEX .  HOWEVER FROM THE CME DATA 2998 EFP’S  WERE ISSUED FOR TUESDAY FOR A DELIVERABLE CONTRACT OVER IN LONDON WITH A FIAT BONUS. IN ESSENCE THE  DEMAND FOR SILVER PHYSICAL INTENSIFIES GREATLY. WE REALLY LOST ONLY 4613 CONTRACTS.

In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.987 BILLION TO BE EXACT or 141% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT OCT MONTH/ THEY FILED: 3 NOTICE(S) FOR 15,000 OZ OF SILVER

In gold, the open interest FELL  BY A LESS THAN EXPECTED 9,277 CONTRACTS WITH THE HUGE SIZED FALL IN PRICE OF GOLD ($19.70) WITH RESPECT TO YESTERDAY’S TRADING. WE HAD CONSIDERABLE COMEX LONGS EXIT THE ARENA.  HOWEVER  THE TOTAL NUMBER OF GOLD EFP’S ISSUED YESTERDAY FOR TODAY  TOTALED A TOTALLY UNBELIEVABLE: 21,428 CONTRACTS OF WHICH THE MONTH OF DECEMBER SAW 21,428 CONTRACTS AND FEB SAW THE ISSUANCE OF 150 CONTRACTS. YESTERDAY, WE WITNESSED A TOTAL OF 12,711 EFP’S ISSUED FRIDAY  FOR MONDAY.  The new OI for the gold complex rests at 550,561. DEMAND FOR GOLD INTENSIFIES DESPITE THE CONSTANT RAIDS.  EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION.  THE BANKERS AT THE COMEX  HAVE JUST STATED THAT THEY HAVE NO METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NOT BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS SEVERELY BACKWARD IN BOTH GOLD AND SILVER AND ON TOP OF THAT IT IS TAKING 6 TO 10 WEEKS TO OBTAIN PHYSICAL WHEN FORWARDS ARE DUE.

Result: A HUGE SIZED DECREASE IN OI  WITH THE MAMMOTH FALL IN PRICE IN GOLD ON YESTERDAY ($19.70). WE  HAD AN UNBELIEVABLE HUMONGOUS NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 21,428. THERE OBVIOUSLY DOES NOT SEEM TO BE ANY PHYSICAL GOLD AT THE COMEX AN YET WE ARE APPROACHING THE HUGE DELIVERY MONTH OF DECEMBER. I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS NO GOLD PRESENT AT THE GOLD COMEX. IF YOU TAKE INTO ACCOUNT THE 21,428 EFP CONTRACTS ISSUED, WE HAD A NET GAIN OPEN INTEREST OF 12,151:  21,428 CONTRACTS MOVE TO LONDON AND 9277 LEAVE THE COMEX.

we had:  1  notice(s) filed upon for 100 oz of gold.

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

GLD:

No change in gold inventory at the GLD/

Inventory rests tonight: 843.39 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 7611 contracts from 205,094 DOWN  TO197,483 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH THE HUGE FALL IN SILVER PRICE (A LOSS OF 45 CENTS ). HOWEVER, OUR BANKERS  USED THEIR EMERGENCY PROCEDURE TO ISSUE A MONSTROUS 2998  PRIVATE EFP’S FOR DECEMBER (WE DO NOT GET A LOOK AT THESE CONTRACTS)  AND 0 EFP’S FOR MARCH FOR A TOTAL OF 2998 EFP CONTRACTS.  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. THIS IS QUITE EARLY FOR THESE EFP ISSUANCE..USUALLY WE WITNESS THIS ONE WEEK PRIOR TO FIRST DAY NOTICE AND THIS CONTINUES RIGHT UP UNTIL FDN.  WE ALSO HAD CONSIDERABLE  AMOUNT OF SILVER COMEX LIQUIDATION.

RESULT: A HUGE SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 45 CENT LOSS IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING). HOWEVER, WE  HAD ANOTHER 2998 EFP’S ISSUED ,TRANSFERRING OUR COMEX LONGS OVER TO LONDON TOGETHER WITH CONSIDERABLE  SILVER COMEX LIQUIDATION.  YESTERDAY WE EXPERIENCED 1078 EFP’S ISSUED FOR TRANSFER TO LONDON.

(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 MONDAY night/TUESDAY morning: Shanghai closed UP 18.10 points or .53% /Hang Sang CLOSED UP 557.76 pts or 1.91% / The Nikkei closed UP 154.72 POINTS OR 0.70%/Australia’s all ordinaires CLOSED UP 0.27%/Chinese yuan (ONSHORE) closed DOWN at 6.6336/Oil UP to 56.55 dollars per barrel for WTI and 62.36 for Brent. Stocks in Europe OPENED GREEN ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.6336. OFFSHORE YUAN CLOSED WEAKER TO THE ONSHORE YUAN AT 6.6362 //ONSHORE YUAN WEAKER AGAINST THE DOLLAR/OFF SHORE WEAKER TO THE DOLLAR/. THE DOLLAR (INDEX) IS STRONGER AGAINST ALL MAJOR CURRENCIES. CHINA IS   VERY HAPPY TODAY.(MARKETS STRONG)

 

 

3a)THAILAND/SOUTH KOREA/NORTH KOREA

i)North Korea/South Korea

 

b) REPORT ON JAPAN

c) REPORT ON CHINA

China to crackdown online lenders and they are crashing

( zerohedge)

4. EUROPEAN AFFAIRS

Bill Blain outlines 4 major threats that can bring Europe crashing down:

( Bill Blain/Mint Partners)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)Lebanon/Israel

The Lebanese army is now on full combat readiness at the southern border ready to counter Israel

( zerohedge)

ii)Saudi Arabia

Publicly traded Kingdom holdings seems to be in trouble as the Saudi purge is playing havoc to its financing

( zerohedge)

iii)Russia/Syria

Putin hold a surprise meeting with Assad on what he wants with Syria now that the terrorists have been defeated.  He will phone Trump later today to discuss the matter:

( zerohedge)

 

6 .GLOBAL ISSUES

7. OIL ISSUES

Oil tops 57 dollars per barrel after another big drawdown

( zerohedge)

8. EMERGING MARKET

This is going to hurt joint venture partners  as bankrupt Venezuela is demanding oil without payment.  Obviously when dividends are declared they will get nothing. This oil is being used internally to feed its people

 

( zerohedge)

 

9. PHYSICAL MARKETS

i)As I described to you yesterday, the one drawback to Bitcoin is that hackers can hack and steal.  Last night 31 million dollars worth of Bitcoin tether was stolen.  Wait until the futures come and then bitcoin price will be slaughtered
( zerohedge)

ii)Doomsday preppers are starting to switch from gold to bitcoin.  Good luck to them. There is nothing backing bitcoin.  It needs to be backed by gold.

( zerohedge)

iii)We brought this to your attention yesterday;  The raid dropped the gold price right at its 50 day moving average of $1275. This resistance level held(courtesy zerohedge/GATA)

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

i)Morning trading NY
the yield curve continues to collapse as the 2 yr/10 yr plunges below 60 basis points with the 5 over 30 yr plunging to 65 basis points.  It sure seems that the yield curve is heading for inversion and that generally means recession
( zerohedge)

ii)A very good question:  why is the Dept of Justice downplaying reports and proof linking both Obama and Clinton to the Uranium 1 scandal

( zerohedge)

iii)Journalist Sara Carter provides proof of Obama/Clinton involvement in the Uranium 1 scandal and how the DOJ is trying to credit Campbell, the FBI informanta must read..

 

(courtesy Zero Point Now)

iv)Uber is bleeding red ink badly.  It’s 2nd quarter cash burn was over 600 million dollars or 7 million a day. Mutual funds are announcing that they are going to slash their valuations by 15%.  Then why did Uber purchase 1 billion dollars worth of driverless Volvos?

( zerohedge)

v)Existing home sales rise on a month to month basis but still drop year over year.  The rise might be due to the tentative removal of tax incentives to purchase a home

( zerohedge)

vi)both Trump and Putin are acting like true statesmen:

 

(courtesy zerohedge)

Let us head over to the comex:

The total gold comex open interest SURPRISINGLY ONLY FELL BY ONLY 9277  CONTRACTS DOWN to an OI level of 5550,561 DESPITE THE  MAMMOTH FALL IN THE PRICE OF GOLD ($19.70 DROP WITH RESPECT TO YESTERDAY’S TRADING).  WE EXPERIENCED SOME GOLD COMEX  LIQUIDATION. HOWEVER  WE DID HAVE A HUMONGOUS 21,428 COMEX LONGS EXIT THE COMEX ARENA THROUGH THE EFP ROUTE AS THEY RECEIVE  A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS. THE CME REPORTS THAT 21,278 EFPS WERE ISSUED FOR DECEMBER AND 150 WERE ISSUED FOR MARCH. THE OBLIGATION STILL RESTS WITH THE BANKERS ON THESE TRANSFERS. DUE TO THE HUGE INCREASE IN OI YESTERDAY, THE BANKERS FELT IT OBLIGATORY TO RAID THE COMEX  TRYING TO GET OUR MATHEMATICAL LONGS TO FALL FROM THEIR RESPECTIVE TREE.

ON A NET BASIS IN OPEN INTEREST WE GAINED: 12,201 CONTRACTS IN THAT 21,428 LONGS WERE TRANSFERRED AS LONGS TO LONDON AS A FORWARD AND WE LOST 9227 COMEX CONTRACTS.  NET GAIN 12,201

Result: a HUGE DECREASE IN COMEX OPEN INTEREST WITH THE HUGE SIZED FALL IN THE PRICE OF GOLD ($19.60.)  HOWEVER A HUGE 21,428 EFP’S ISSUED FOR A FIAT BONUS AND A DELIVERABLE FORWARD GOLD CONTRACT IN LONDON. WE HAD CONSIDERABLE  COMEX GOLD LIQUIDATION YESTERDAY.

.

We have now entered the NON active contract month of NOVEMBER.HERE WE HAD A LOSS OF 0 CONTRACT(S) REMAINING AT  10. We had 1 notices filed YESTERDAY so GAINED 1 contracts or 100 additional oz will stand for delivery AT THE COMEX in this non active month of November.

The very big active December contract month saw it’s OI LOSS OF 24,513 contracts DOWN to 243,578.  January saw its open interest RISE by 85 contracts UP to 960. FEBRUARY saw a gain of 13,742 contacts up to 226,514. DEMAND FOR GOLD INTENSIFIES TO THE HIGHEST DEGREE.

We had 1 notice(s) filed upon today for 100 oz

VOLUME FOR TODAY : 428,049 (PRELIMINARY)

CONFIRMED VOLUME YESTERDAY: 474,373 contracts.  (comex volumes are intensifying)

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And now for the wild silver comex results.

Total silver OI FELL  BY A HUGE 7611 CONTRACTS FROM 204094 DOWN TO 197,483 WITH YESTERDAY’S HUGE SIZED 45 CENT FALL IN PRICE. HOWEVER WE DID HAVE A MONSTROUS 2998 PRIVATE EFP’S ISSUED FOR DECEMBER AND 0 EFP’S FOR MARCH BY OUR BANKERS TO COMEX LONGS WHO RECEIVED A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. THIS IS QUITE EARLY FOR THE ISSUANCE. USUALLY WE WITNESS THIS EVENT ONE WEEK PRIOR TO FIRST DAY NOTICE AND IT CONTINUES RIGHT UP TO FDN.  WE HAD CONSIDERABLE LONG SILVER COMEX LIQUIDATION.  THE TOTAL EFP’S ISSUED TODAY TO OUR COMEX LONGS TOTAL 2998 AND THUS DEMAND FOR PHYSICAL SILVER INTENSIFIES AGAIN

 

The new front month of November saw its OI FALL by 3 contract(s) and thus it stands at 3. We had 3 notice(s) 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 FELL by 22,620 contracts DOWN to 75,364, YET WE HAD 2998 EFP’S ISSUED WHICH MEANS A GOOD PERCENTAGE OF THE ROLLOVERS LANDED IN LONDON AS A TRANSFER OF OI FOR A FORWARD.  January saw A GAIN OF 59 contracts RISING TO 1304.

We had 0 notice(s) filed for NIL oz for the NOV. 2017 contract

INITIAL standings for NOVEMBER

 Nov 21/2017.

Gold Ounces
Withdrawals from Dealers Inventory in oz   nil oz
Withdrawals from Customer Inventory in oz  
 nil
 oz
Deposits to the Dealer Inventory in oz    nil oz
Deposits to the Customer Inventory, in oz 
nil
oz
No of oz served (contracts) today
 
1 notice(s)
100 OZ
No of oz to be served (notices)
9 contracts
(900 oz)
Total monthly oz gold served (contracts) so far this month
1053 notices
105,300 oz
3.275 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 trans

WE HAD nil DEALER DEPOSIT:
total dealer deposits: nil oz

We had nil dealer withdrawals:
total dealer withdrawals: nil oz

we had 0 customer deposit(s):

 

total customer deposits nil  oz

We had 0 customer withdrawal(s)

 

Total customer withdrawals: nil oz

we had 0 adjustment(s)

 

For 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 1 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account.

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To calculate the INITIAL total number of gold ounces standing for the NOVEMBER. contract month, we take the total number of notices filed so far for the month (1053) x 100 oz or 105,300 oz, to which we add the difference between the open interest for the front month of NOV. (10 contracts) minus the number of notices served upon today (1 x 100 oz per contract) equals 106,200 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 (1053) x 100 oz or ounces + {(10)OI for the front month minus the number of notices served upon today (1) x 100 oz which equals 106,200 oz standing in this active delivery month of NOVEMBER (3.303 tonnes)

WE GAINED 1 ADDITIONAL CONTRACTS OR 100 OZ OF ADDITIONAL GOLD STANDING FOR METAL AT THE COMEX

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THE COMEX GOLD CONTRACT AT AROUND THE SAME TIME AS LAST YEAR:  (NOV 22) WE HAD 199,751 GOLD CONTRACTS STANDING AND THIS COMPARES TO 243,578 TODAY . THE DIFFERENCE IS HUGE!

ON FIRST DAY NOTICE FOR DECEMBER,  THE INITIAL  GOLD STANDING:  39.038 TONNES STANDING

BY THE END OF THE MONTH:  FINAL: 29.791 TONNES STOOD FOR COMEX DELIVERY AS THE REMAINDER HAD TRANSFERRED OVER TO LONDON FORWARDS.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Total dealer inventory 514,112.106 or 15.999 tonnes (dealer gold continues to disappear)
Total gold inventory (dealer and customer) = 8,826,580.395 or 274.54 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 80 NET TONNES HAS LEFT THE COMEX.

end

And now for silver

AND NOW THE NOVEMBER DELIVERY MONTH

NOVEMBER INITIAL standings

AND NOW THE NOVEMBER DELIVERY MONTH
 Nov 21/ 2017
Silver Ounces
Withdrawals from Dealers Inventory  nil
Withdrawals from Customer Inventory
 700,530.500oz
Scotia
Deposits to the Dealer Inventory
 nil oz
Deposits to the Customer Inventory 
 600,685.34
oz
CNT
No of oz served today (contracts)
0 CONTRACT(S)
(NIL,OZ)
No of oz to be served (notices)
0 contract
(NIL oz)
Total monthly oz silver served (contracts) 885 contracts(4,420,000 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

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 Scotia: 700,530.500 oz

TOTAL CUSTOMER WITHDRAWAL  700,530.500 oz

We had 1 Customer deposit(s):

i) Into CNT:

261,594.766 oz

***deposits into JPMorgan have stopped again
In the month of March and February, JPMorgan stopped (received) almost all of the comex silver contracts.
why is JPMorgan bringing in so much silver??? why is this not criminal in that they are also the massive short in silver

total customer deposits: 600,685.34 oz

we had 1 adjustment(s)

 

i) out of CNT: 261,594.76 oz leaves the dealer and lands into the customer account of CNT

The total number of notices filed today for the NOVEMBER. contract month is represented by 0 contracts FOR NIL 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 884 x 5,000 oz = 4,420,0000 oz to which we add the difference between the open interest for the front month of NOV. (0) and the number of notices served upon today (0 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the NOVEMBER contract month: 884 (notices served so far)x 5000 oz + OI for front month of NOVEMBER(0) -number of notices served upon today (0)x 5000 oz equals 4,420,000 oz of silver standing for the NOVEMBER contract month. This is EXCELLENT for this NON active delivery month of November.

We gained 0 contract(s) 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. THE TRANSFER OF EFP’S TO LONDON FURTHER INTENSIFIES THE DEMAND FOR PHYSICAL METAL!!

AT THIS TIME LAST YEAR WE HAD 56,352 NOTICES STANDING FOR DELIVERY FOR SILVER.  THIS YEAR  75,364 WITH THE SAME NUMBER OF TRADING DAYS LEFT.

ON FIRST DAY NOTICE FOR THE DECEMBER CONTRACT WE HAVE 15.282 MILLION OZ STAND.

THE FINAL STANDING: 19.900 MILLION OZ AS QUEUE JUMPING INTENSIFIED.

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ESTIMATED VOLUME FOR TODAY: 173,740
CONFIRMED VOLUME FOR YESTERDAY: 197,483 CONTRACTS

YESTERDAY’S CONFIRMED VOLUME OF 197,483 CONTRACTS EQUATES TO 987 MILLION OZ OR 141% OF ANNUAL GLOBAL PRODUCTION OF SILVER

THE COMMODITY LAW SUGGESTS THAT OPEN INTEREST SHOULD NOT BE MORE THAN 3% OF ANNUAL GLOBAL PRODUCTION.  THE CROOKS ARE SUPPLYING MASSIVE PAPER TRYING TO KEEP SILVER IN CHECK.

Total dealer silver: 43.555 million
Total number of dealer and customer silver: 231.587 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 2.4 percent to NAV usa funds and Negative 2.1% to NAV for Cdn funds!!!!
Percentage of fund in gold 62.3%
Percentage of fund in silver:37.4%
cash .+.3%( Nov 21/2017)

2. Sprott silver fund (PSLV): NAV FALLS TO -1.06% (Nov 21 /2017)
3. Sprott gold fund (PHYS): premium to NAV FALLS TO -0.60% to NAV (Nov 21/2017 )
Note: Sprott silver trust back into NEGATIVE territory at -1.06%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.60%/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)

END

And now the Gold inventory at the GLD

Nov 21/no change in gold inventory at the GLD/inventory rests at 843.39 tonnes

NOV 20/no change in gold inventory at the GLD/Inventory rests at 843.39 tonnes

Nov 17/no change in gold inventory at the GLD/inventory rests at 843.39 tonnes

Nov 16./NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 843.39 TONNES

Nov 15./no change in gold inventory at the GLD/inventory rests at 843.09 tonnes

NOV 14/a small deposit of .300 tonnes into the GLD inventory/Inventory rests at 843.39 tonnes

Nov 13/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 843.09 TONNES

Nov 10/no change in gold inventory at the GLD/Inventory rests at 843.09 tonnes

Nov 9/no changes in inventory at the GLD/Inventory rests at 843.09 tonnes

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

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Nov 21/2017/ Inventory rests tonight at 843.39 tonnes

*IN LAST 277 TRADING DAYS: 97.56 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 212 TRADING DAYS: A NET 59,72 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.
*FROM FEB 1/2017: A NET 28.61 TONNES HAVE BEEN ADDED.

end

Now the SLV Inventory

Nov 21/no change in silver inventory at the SLV/inventory rests at 318.074 million oz/

NOV 20/no change in silver inventory at the SLV/inventory rests at 318.074 million oz

Nov 17/no change in silver inventory at the SLV/inventory rests at 318.074 million oz/

Nov 16./NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.074 MILLION OZ/

Nov 15./no change in silver inventory at the SLV/inventory rests at 318.074 tones

NOV 14/no change in silver inventory at the SLV/Inventory rests at 318.074 tonnes

Nov 13/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.074 MILLION OZ

Nov 10/no change in silver inventory at the SLV/Inventory rests at 318.074 million oz/

Nov 9/no change in silver inventory at the SLV/inventory rests at 318.074 million oz.

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

Nov 17/2017:

Inventory 318.074 million oz

end

6 Month MM GOFO
Indicative gold forward offer rate for a 6 month duration

+ 1.57%
12 Month MM GOFO
+ 1.78%
30 day trend

end

 

 

 

Major gold/silver trading/commentaries for TUESDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

Gold Versus Bitcoin: The Pro-Gold Argument Takes Shape

– Gold versus Bitcoin: The pro-gold argument takes shape
– Why cryptocurrencies will not replace gold as a store of value
– Similarities between crypto and gold but that does not make them substitutes
– Gold remains a highly liquid market, cryptocurrencies continue to be fragmented and difficult to spend
– Bitcoin  does not make it an effective hedge against stocks
– Gold coins and bars cannot be hacked and vaults are insured

This weekend saw bitcoin shoot up over $8,000 and Bloomberg covered how some preppers were turning to bitcoin over gold. Does this mean it’s all over for gold? Is it set to be supplanted as a safe haven by crypto currencies?

Hardly. People read such information and continue to believe that gold and cryptocurrencies are substitute assets. They are not. So why are they so often pitched against one another?

Bitcoin and its contemporaries clearly have a role to play, the volume of demand demonstrates this and the technology is powerful. But, that role is not as a replacement for gold as a store of value.

Risk Hedge sums it up saying:

“Despite what the crypto-evangelists will tell you, digital tokens will never and can never replace gold as your financial hedge.”

Risk Hedge provided a great summary of the major flaws and differences in the gold versus crypto debate and the six reasons are listed below.

#1: Cryptocurrencies Are More Similar to a Fiat Money System Than You Think.

The definition of “fiat money” is a currency that is legal tender but not backed by a physical commodity.

Since the United States abandoned the gold standard in the 1970s, this has been the case with all major currencies, including the US dollar.

Ever since then, US money supply has kept increasing, and so has the national debt. In contrast, the dollar’s purchasing power has been on the decline.

Take a look at this historical gold price chart.

The huge spike in gold prices started right around the time when the Bretton Woods agreement collapsed in 1971 and US paper dollars couldn’t be converted to gold anymore. A clear sign of the decline in the dollar’s purchasing power since the move into a pure fiat money system.

It’s clear that cryptocurrencies partially fit the definition of fiat money. They may not be legal tender yet, but they’re also not backed by any sort of physical commodity. And while total supply is artificially constrained, that constraint is just… well, artificial.

You can’t compare that to the physical constraint on gold’s supply.

Some countries are also exploring the idea of introducing government-backed cryptocurrencies, which would take them one step closer toward fiat-currency status.

As RussiaIndia, and Estonia are considering their own digital money, Dubai has already taken it one step further. In September, the kingdom announced that it has signed a deal to launch its own blockchain-based currency known as emCash.

So ask yourself, how can you effectively hedge against a fiat money system with another type of fiat money?

#2: Gold Has Always Had and Will Always Have an Accessible Liquid Market.

An asset is only valuable if other people are willing to trade it in return for goods, services, or other assets.

Gold is one of the most liquid assets in existence. You can convert it into cash on the spot, and its value is not bound by national borders. Gold is gold—anywhere you travel in the world, you can exchange gold for whatever the local currency is.

The same cannot be said about cryptocurrencies. While they’re being accepted in more and more places, broad, mainstream acceptance is still a long way off.

What makes gold so liquid is the immense size of its market. The larger the market for an asset, the more liquid it is. According to the World Gold Council, the total value of all gold ever mined is about $7.8 trillion.

By comparison, the total size of the cryptocurrency market stands at about $161 billion as of this writing—and that market cap is split among 1,170 different cryptocurrencies.

That’s a long shot from becoming as liquid and widely accepted as gold.

#3: The Majority of Cryptocurrencies Will Be Wiped Out.

Many Wall Street veterans compare the current rise of cryptocurrencies to the Internet in the early 1990s.

Most stocks that had risen in the first wave of the Internet craze were wiped out after the burst of the dot-com bubble in 2000. The crash, in turn, gave rise to more sustainable Internet companies like Google and Amazon, which thrive to this day.

The same will probably happen with cryptocurrencies. Most of them will get wiped out in the first serious correction. Only a few will become the standard, and nobody knows which ones at this point.

And if major countries like the US jump in and create their own digital currency, they will likely make competing “private” currencies illegal. This is no different from how privately issued banknotes are illegal (although they were legal during the Free Banking Era of 1837–1863).

So while it’s likely that cryptocurrencies will still be around years from now, the question is, which ones? There is no need for such guesswork when it comes to gold.

#4: Lack of Security Undermines Cryptocurrencies’ Effectiveness.

Security is a major drawback facing the cryptocurrency community. It seems that every other month, there is some news of a major hack involving a Bitcoin exchange.

In the past few months, the relatively new cryptocurrency Ether has been a target for hackers. The combined total amount stolen has almost reached $82 million.

Bitcoin, of course, has been the largest target. Based on current prices, just one robbery that took place in 2011 resulted in the hackers taking hold of over $3.7 billion worth of bitcoin—a staggering figure. With security issues surrounding cryptocurrencies still not fully rectified, their capability as an effective hedge is compromised.

When was the last time you heard of a gold depository being robbed? Not to mention the fact that most depositories have full insurance coverage.

#5: Hype and Speculation Continue to Drive Cryptocurrencies’ Value.

Since the beginning of the year, the value of Bitcoin has more than quadrupled—a tremendous spike in value that has sent investors rushing to invest in cryptocurrencies. But could this be nothing more than a market bubble?

One of the world’s most successful hedge fund managers, Ray Dalio of Bridgewater Associates, certainly seems to think so.

In September 2017, he told CNBC, “It’s not an effective store hold of wealth because it has volatility to it, unlike gold. Bitcoin is a highly speculative market. Bitcoin is a bubble.”

The spike in Bitcoin prices seems to only lend credence to this view. With such an extreme degree of volatility, cryptocurrencies’ value as a hedge is questionable. Most people buy them for the sole reason of selling them later at higher prices.

This is pure speculation, not hedging.

#6: Cryptocurrencies Do Not Have Gold’s History as a Store of Value.

Cryptocurrencies have been around for less than a decade, whereas gold has been used as a store of value for thousands of years. Because of this long history, we know for a fact that stocks and bonds have low or negative correlations with gold, particularly during periods of economic recession. This makes gold a powerful hedge.

What little data we have on cryptocurrencies does not show the same. Consider this year alone: while the US stock market continues to run record highs, the same goes for Bitcoin.

It’s true that gold has also gone up, but the correlation has been very low and, during times of recessions, tends to swing to the negative side, as you can see in the graph below.

Since 2010, there have been 15 times where the S&P 500 has seen drops of 5% or more. Out of those 15 stock market downturns, Bitcoin has been down for 10 of them.

How is that a good hedge?

Read the original article here


Related Content

Millennials Can Punt On Bitcoin, Own Gold and Silver For Long Term

Gold Is Better Store of Value Than Bitcoin – Goldman Sachs

Bitcoin and Gold – Outlook and Safe Haven?

News and Commentary

Gold falls on pressure from stronger dollar, rate hikes in focus (Reuters.com)

Asian Stocks Advance; Dollar, Treasuries Steady (Bloomberg.com)

Gold, Euro Slump As Merkel Admits “New Elections Are The Better Way” (ZeroHedge.com)

Yellen Says She’ll Leave Fed Once Powell Sworn in as Chair (Bloomberg.com)

No EU deposit insurance if bad loans not cut: ECB’s Draghi (Reuters.com)

Source: Bloomberg

Gold Drops To Key Technical Support After $2 Billion Purge (ZeroHedge.com)

Gold is rising despite threat of higher interest rates – Rickards (DailyReckoning.com)

Thorne, Magic Money, and Cyberbucks: Three pre-Bitcoin monetary experiments (JPKoning.Blogspot.ie)

The Fed Plans For The Coming Recession – Next-Generation Crazy (DollarCollapse.com)

ECB wants to end deposit protection & offer savers ‘appropriate amount’ of their own money (RT.com)

Gold Prices (LBMA AM)

21 Nov: USD 1,280.00, GBP 967.04 & EUR 1,090.69 per ounce
20 Nov: USD 1,292.35, GBP 974.82 & EUR 1,096.43 per ounce
17 Nov: USD 1,283.85, GBP 969.31 & EUR 1,088.19 per ounce
16 Nov: USD 1,277.70, GBP 969.01 & EUR 1,085.53 per ounce
15 Nov: USD 1,285.70, GBP 976.62 & EUR 1,086.29 per ounce
14 Nov: USD 1,273.70, GBP 972.47 & EUR 1,086.59 per ounce
13 Nov: USD 1,278.40, GBP 977.59 & EUR 1,097.89 per ounce

Silver Prices (LBMA)

21 Nov: USD 17.00, GBP 12.85 & EUR 14.50 per ounce
20 Nov: USD 17.15, GBP 12.94 & EUR 14.56 per ounce
17 Nov: USD 17.09, GBP 12.95 & EUR 14.49 per ounce
16 Nov: USD 17.04, GBP 12.92 & EUR 14.48 per ounce
15 Nov: USD 17.12, GBP 13.00 & EUR 14.45 per ounce
14 Nov: USD 16.94, GBP 12.92 & EUR 14.45 per ounce
13 Nov: USD 16.93, GBP 12.93 & EUR 14.53 per ounce


Recent Market Updates

– Money and Markets Infographic Shows Silver Most Undervalued Asset
– Is New Fed Chief A “Swamp Critter Extraordinaire”?
– Deepening Crisis In Hyper-inflationary Venezuela and Zimbabwe
– UK Debt Crisis Is Here – Consumer Spending, Employment and Sterling Fall While Inflation Takes Off
– Protect Your Savings With Gold: ECB Propose End To Deposit Protection
– Internet Shutdowns Show Physical Gold Is Ultimate Protection
– Gold Coins and Bars Saw Demand Rise 17% to 222T in Q3
– Prepare For Interest Rate Rises And Global Debt Bubble Collapse
– Platinum Bullion ‘May Be One Of The Only Cheap Assets Out There’
– 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

Gold trading today:

Gold, Bonds, & Yen Surge As US Equity Markets Open

US equity futures were deleriously bid from the moment Europe opened overnight

 

But as US equity cash markets opened, risk off’ flows suddenly hit sending Yen, bonds, and gold kneejerking higher…

 

 

 END

“Foundation For A Rebound?” – Gold Jumps Above Key Technical Level On Heavy Volume

The last 3 days have been ‘nosiy’ in precious metals markets with gold swinging from the best day in 5 months to the worst day in 4 months and now to another high volume surge, breaking the barbarous relic back its 100-day moving-average…

It sems the 100DMA is a key level with heavy volume being used to push gold futures around it.

UBS asks “Is gold establishing a foundation for a rebound?”

Gold longs rebuild while shorts continue to hesitate

Gold is holding reasonably well near the highs of the range established in the past couple of months. A few macro factors have been supportive of late: the pullback in the dollar, a pause in the rise in US nominal and real rates particularly on the long end, consolidation in equities, and political and fiscal uncertainty in the US. Latest political headlines out of Europe are probably helping at the margins, although currency moves could complicate the impact. Stepping back from near-term developments, it’s worth noting that the gold market’s correction and subsequent consolidation has generally been orderly. The relatively measured unwinding of positions on Comex from the year’s highs reached in September is a reflection of this. Latest CFTC data shows that gold net long positions have been tentatively rebuilding over the past couple of weeks; at 22.33moz, market net length looks relatively lean around 60% of the all-time high, albeit still higher than the 12-month average around 17 moz. The recent build in net positioning was mainly due to gains in gross longs. Although gold shorts increased for the first time in four weeks as of November  14, volumes were very modest.

Gold resilience helps position the market for a rebound up ahead

A combination of resilient longs and hesitant shorts has helped gold form a decent base and enabled prices to climb above some support levels, improving the overall technical picture. As we have previously noted, we think gold’s resilience is in large part due to lingering uncertainty; although macro risks in general are perceived to be lower, there is an acknowledgment that known unknowns and unknown unknowns continue to lurk. Additionally, some seasonal demand is likely also keep gold supported. Bits and pieces of interest are evident out of China, although there seems to be no urgency to stock up for the Lunar New Year holidays which will occur later in February this time around. Market participants have also indicated a preference to hold off until after the FOMC December meeting is out of the way. We think gold’s performance of late and the prospect for further seasonal demand to kick in – albeit with unexceptional volumes – should put gold in a reasonably healthy position for a rebound above $1300 towards the year-end through to early 2018.

Russia adds a huge 21.8 tonnes of gold to its reversed and is now 42 tonnes away from China.  However China does not disclose its reserves any longer.  My bet is that officially they have north of 20,000 tonnes of gold.
(courtesy Lawrie Williams/Sharp’s Pixley)

LAWRIE WILLIAMS: Russian gold reserves – now 1,800 tonnes and rising

The Russian central bank added another 700,000 ounces of gold (21.8 tonnes) to its gold reserves in October, which now puts it within a whisker of China’s 1,842.6 tonnes with a total holding of 57.9 million ounces – or just over 1,800 tonnes. Given that China is currently reporting zero month by month increases in its reserves (which we believe is not its true gold accumulation position), it looks as though Russia, which has been expanding its gold reserves by around 200 tonnes a year (around 185 tonnes so far this year – with 2 months to go), remains on target to overtake China’s ‘official’ reserve figure by the end of the current year, or early next.

As we have noted here before, we consider the Chinese reports of zero additions to its officially reported gold reserve figure, which has remained static for 12 months, as dubious at the very least. While we don’t think Russia’s gold reserves increases are designed to leapfrog China as the world’s No. 5 national official holder of gold, they will do this if the country continues to add to reserves at the current rate and China continues to report zero increases.

Rather, the Russian gold reserve building programme is in place in part to reduce the nation’s reserve dependence on the U.S. dollar. This is in recognition that the increasingly hostile rhetoric that is arising from the neocon element in the U.S. hierarchy could lead to Russia being cut off from the U.S. financial system as the possibility of economic sanctions being increased, as suggested by U.S. Treasury Secretary Steve Mnuchin, is seen as real. While President Trump may well be disinclined to raise the ante in any U.S. – Russian stand- off, his lack of success in ‘draining the Washington DC swamp’, which still seems to call the tune on U.S. foreign relations policy, suggests Russia’s current policy vis- à-vis gold may be a sensible one.

https://www.sharpspixley.com/articles/lawrie-williams- russian-gold-reserves-now-1-800-tonnes-and- rising_274134.html

-END-

As I described to you yesterday, the one drawback to Bitcoin is that hackers can hack and steal.  Last night 31 million dollars worth of Bitcoin tether was stolen.  Wait until the futures come and then bitcoin price will be slaughtered
(courtesy zerohedge)

Bitcoin Tumbles Then Rebounds After Hackers Steal $31 Million Tethers

The rise in Bitcoin’s price was approaching “warp speed” above $8,200 overnight when, as so often happens, it went into another sharp reversal. After hitting an intra-day high of almost $8,265 in early trading on Tuesday, the price crashed more than $400 to $7,827, its biggest drop since November 13. This time it wasn’t another Dimon-esque rant, or the prospect of another fork (technically, these are bullish) but an old-fashioned theft in another cryptocurrency, Tether. Tether is a controversial crypto-business which provides a wallet service allowing crypto exchanges to store and convert fiat currencies to “safe” tokens (not to be confused with an ICO token) and vice versa.

What an amazing ending to our 3hr live  talk on @jimmysong‘s Channel to learn that  just got hacked for $30 Million. More on that tomorrow, but for now check out the video w/ @Bitfinexed@flibbr & @BTCVIXhttps://www.youtube.com/watch?v=TerIjELO7IY pic.twitter.com/rN6I3V0nNO

So the price of  dropped almost $500 on the hack news. If YOU decided to panic sell your  (or ) for  please explain your logic. I would love to hear it 😂pic.twitter.com/79AtmgGbRo

View image on Twitter

Tether has a market cap of roughly $673 million and is the world’s nineteenth largest cryptocurrency, based Coinmarketcap.com data. Regarding the theft, Tether alleges that $31MM of USDT tokens (Tethers trading at parity with the dollar) were stolen on 19 November 2017.

From the Tether press release:

Tether Critical Announcement

 

Yesterday, we discovered that funds were improperly removed from the Tether treasury wallet through malicious action by an external attacker. Tether integrators must take immediate action, as discussed below, to prevent further ecosystem disruption.

 

$30,950,010 USDT was removed from the Tether Treasury wallet on November 19, 2017 and sent to an unauthorized bitcoin address. As Tether is the issuer of the USDT managed asset, we will not redeem any of the stolen tokens, and we are in the process of attempting token recovery to prevent them from entering the broader ecosystem. The attacker is holding funds in the following address: 16tg2RJuEPtZooy18Wxn2me2RhUdC94N7r. If you receive any USDT tokens from the above address, or from any downstream address that receives these tokens, do not accept them, as they have been flagged and will not be redeemable by Tether for USD.

What is especially troubling, is how easy it was – in retrospect – to “steal” over $30MM worth of cryptos and send them on to a “non-extradition” address. As per Tether’s announcement, the $31MM was simply sent to “an unauthorised Bitcoin address.” While likely futile, the company took steps to recover the loast money: as The Crunch reports:

In response Tether said it has flagged the tokens — meaning that it will track them and prevent the holder from exchanging them through its service — and that it is working to recover them. For partners, the back-end wallet service has been suspended. Tether said it will investigate the incident while it rolls out an update to Omni Core — its software for partners — that will prevent the stolen coins from recirculating into its ecosystem by essentially locking them into the alleged hacker’s wallet.

Where things begin to get murky, is the extent to which there may or may not be a relationship between Tether and another controversial player in the cryptocurrency space, Bitfinex. The latter is the major crypto exchange which was famously hacked in 2016, after which the Bitcoin price fell 20%. The Crunch notes that some crypto players are already expressing concern about a potential “inside job”.

One of the partners that uses Tether is crypto exchange Bitfinex, which itself lost 119,756 bitcoin — then worth $72 million but valued at over $950 million today — in a hack over a year ago. As Coindesk reports, the incident is sure to throw up more questions about the relationship between Tether and the secretive exchange Bitfinex. The duo are rumored to share owners, and have been accused of leaning on each other to manipulate the market. Already, there are theories circulating that suggest this new attack could be an inside job.

This latest hit to Bitcoin is likely to prompt more discussion of the relative advantages of gold versus Bitcoin. In a recent post On Zero Hedge, John Rubino cited an article on the Risk Hedge website “All the Reasons Cryptocurrencies Will Never Replace Gold as Your Financial Hedge” in which security was highlighted as one of the key risks for cryptos.

#4: Lack of Security Undermines Cryptocurrencies’ Effectiveness.

 

Security is a major drawback facing the cryptocurrency community. It seems that every other month, there is some news of a major hack involving a Bitcoin exchange.  In the past few months, the relatively new cryptocurrency Ether has been a target for hackers. The combined total amount stolen has almost reached $82 million.

 

Bitcoin, of course, has been the largest target. Based on current prices, just one robbery that took place in 2011 resulted in the hackers taking hold of over $3.7 billion worth of bitcoin—a staggering figure. With security issues surrounding cryptocurrencies still not fully rectified, their capability as an effective hedge is compromised. When was the last time you heard of a gold depository being robbed? Not to mention the fact that most depositories have full insurance coverage.

In another recent post, “Doomsday Preppers Are Switching Allegiance From Gold To Bitcoin”, the issue of security was also prominently discussed. However, for preppers, the main issue was what would happen if the grid failed. As we’ve suggested, it’s hardly surprising given Bitcoin’s performance that investors and preppers alike have switched their allegiance towards the pre-eminent crypto-currency. However, more events like this, will only add to the view that there is a place in portfolios (and bunkers) for both. After Bitcoin topped $8200 yesterday, we noted the following amusing comment from currency brokerage ForexTime.

I find it remarkable and somewhat frightening how, no matter how much Bitcoin is pummeled by sellers, it simply bounces back even stronger.”

We’re not there yet, but the price is already closing in on the pre-theft record high of $8,300 as we write.

And, as Bloomberg adds, the incident is the latest in a long list of hacks which while denting confidence in the security of cryptocurrencies, “typically have fleeting market impact: bitcoin has surged to one record after another during the past few years despite major thefts from exchanges including Bitfinex and Mt. Gox.”

 end
Doomsday preppers are starting to switch from gold to bitcoin.  Good luck to them. There is nothing backing bitcoin.  It needs to be backed by gold.
(courtesy zerohedge)

These doomsday preppers are starting to switch from gold to bitcoin

 Section: 

By Eddie VanDer Walt
Bloomberg News
Monday, November 20, 2017

Wendy McElroy is ready for most doomsday scenarios: a one-year supply of nonperishable food is stacked in a cellar at her farm in rural Ontario. Her blueprint for survival also depends upon working internet: part of her money, assuming she needs some after civilization collapses, is in bitcoin.

Across the North American countryside, preppers like McElroy are storing more and more of their wealth in invisible wallets in cyberspace instead of stockpiling gold bars and coins in their bunkers and basement safes.

They won’t be able to access their virtual cash the moment a catastrophe knocks out the power grid or the web, but that hasn’t dissuaded them. Even staunch survivalists are convinced bitcoin will endure economic collapse, global pandemic, climate change catastrophes and nuclear war. …

At first glance, it seems counter-intuitive that some of bitcoin’s most ardent proponents are people motivated by the belief that public infrastructure will collapse in times of social and political distress. Bitcoin isn’t yet widely accepted as a method of payment and steep transaction costs make it inconvenient to use at vendors that do take it. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2017-11-20/can-bitcoin-survive-a..

 END
Doomsday preppers are starting to switch from gold to bitcoin.  Good luck to them. There is nothing backing bitcoin.  It needs to be backed by gold.
(courtesy zerohedge)

Zero Hedge: Gold drops to key support after $2 billion purge

 Section: 

From Zero Hedge
Monday, November 20, 2017

After surging above its 50-day moving-average on Friday, it appears someone is keen for that key technical level not to hold as they dumped almost $2 billion notional in seconds this morning, testing down to the 50-day moving average.

Fifteen thousand contracts dumped in under two minutes. … But for now the 50-day moving average is holding. …

… For the remainder of the report:

http://www.zerohedge.com/news/2017-11-20/gold-drops-key-technical-suppor…

END

We brought this to your attention yesterday;  The raid dropped the gold price right at its 50 day moving average of $1275. This resistance level held

(courtesy zerohedge/GATA)

Zero Hedge: Gold drops to key support after $2 billion purge

 Section: 

From Zero Hedge
Monday, November 20, 2017

After surging above its 50-day moving-average on Friday, it appears someone is keen for that key technical level not to hold as they dumped almost $2 billion notional in seconds this morning, testing down to the 50-day moving average.

Fifteen thousand contracts dumped in under two minutes. … But for now the 50-day moving average is holding. …

… For the remainder of the report:

http://www.zerohedge.com/news/2017-11-20/gold-drops-key-technical-suppor..


Your early TUESDAY 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 DOWN AT 6.6336/shanghai bourse CLOSED UP AT 18.10 POINTS .53% / HANG SANG CLOSED UP 557.76 POINTS OR 0.21%
2. Nikkei closed DOWN 135.04 POINTS OR 1.91% /USA: YEN RISES TO 112.56

3. Europe stocks OPENED GREEN  /USA dollar index RISES TO 94.09/Euro FALLS TO 1.1725

3b Japan 10 year bond yield: RISES TO . +.033/ GOVERNMENT INTERVENTION !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 112.56/ 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:: 56.55  and Brent: 62.36

3f Gold UP/Yen DOWN

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO +.352%/Italian 10 yr bond yield DOWN to 1.775% /SPAIN 10 YR BOND YIELD DOWN TO 1.487%

3j Greek 10 year bond yield RISES TO : 5.298???

3k Gold at $1278.21 silver at:16.98: 6 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 40/100 in roubles/dollar) 59.43

3m oil into the 56 dollar handle for WTI and 61 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 112.53 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 0.9943 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1659 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 +0.353%

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 2.361% early this morning. Thirty year rate at 2.771% /

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

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

Bonds, Futures, Global Stocks All Rise, Boosted By “Germany’s Brexit Moment”; TSY Curve Collapse Continues

 

S&P 500 futures are higher, continuing on yesterday’s momentum, after European and Asian shares also rose alongside a rebound in oil, as the year-end performance chase appears to be accelerating. There were several different moving parts in a mixed European session, in which early Euro strength gave way to weakness…

… which in turn pushed the Stoxx 600 and US index futures higher, rising above yesterday’s session high on negligible volumes.

Global equity futures rallied with Hang Seng futures outperforming and flash smashing to close the session, after a strong finish for Chinese equities following a report out of MNI that Chinese deleveraging may not be as stringent next year.

European stocks rose this morning (Stoxx 600 +0.3%) as the Euro sank, helped by positive notes out from Goldman Sachs, who are overweight European automakers.  Goldman said in a Europe strategy note that “deep value sectors” (autos, oil, and utilities) will help Stoxx Europe to return 12% in next 12 months. As a result, European automakers outperform led by VW for a second straight day, with the SXAP index advancing as much as 1.9%, best of 19 groups on the Stoxx Europe 600 benchmark (Volkswagen +3.8%, Porsche +2.7%, BMW +2%, Daimler +1.7%).  Additionally, Imperial Brand shares rallied after their CEO change, as analysts speculate that this could increase the likelihood that the company will be taken over by Japan Tobacco. Airliner EasyJet is flying high this morning following strong financial results. Bunds are taking another look at 163.00+ levels having faded rallies above the big figure on several occasions recently.

Stocks have already moved on from this weekend’s German government crisis: German President Frank-Walter Steinmeier said Germany was facing its worst governing crisis in the 68-year history of its post-World War Two democracy and pressed all parties in parliament “to serve our country” and try to form a government.

“The events have already been likened to Germany’s Brexit-moment,” said Daniel van Schoot, an economist at Rabobank. “That is perhaps exaggerated, but the German political situation is now very unpredictable, more than in the past three decades.”

Bonds across the region followed a rise in Treasuries after the
European Central Bank was said to be likely to make only small
adjustments to its guidance on monetary policy next year. EGBs rallied led by gilts which are supported ahead of index extension tomorrow, additionally some focus from European traders on dovish ECB sources piece from yesterday.

The dollar stayed within relatively tight ranges versus its major peers, with average volumes. The euro and the pound edged higher, backed by leveraged interest, only to be capped by their respective 55-DMAs before shedding gains. The Swedish krona led G-10 losses on the back of record low interbank rate fixings, while the Turkish lira pared a drop to an all-time low after the central bank raised borrowing costs. Meanwhile, sterling was steady and gilts advanced amid reports Prime Minister Theresa May has the backing of ministers to offer the European Union more money to break the Brexit deadlock. The Australian dollar dropped to a five-month low after suggestions from the central bank that interest rates will stay lower for longer; EUR/SEK breache’d 10.00 briefly before fading back. Turkey’s lira hit a new record low against the dollar but pared some of the drop after its central bank tightened liquidity, as the standoff between Erdogan and central bank continues.

In overnight central bank announcements, the Bank of England’s Deputy Governor Cunliffe said inflation has been a bit lower than BoE forecast in Autumn and that it’s possible to wait before tightening policy until there is clear evidence that pay growth is responding to unemployment level. Elsewhere, RBA minutes from November 7th meeting stated that any further appreciation in AUD would slow expected pick-up in inflation and the economy. The minutes also stated that there is considerable uncertainty on how fast wages might pick up and add to inflation, while it added that a pass through to inflation may be delayed by many factors. RBA’s Lowe stated that there is ‘not a strong case’ for near-term change in interest rates with the bank paying attention to soft wage growth.

In the U.S., confirmation that Federal Reserve Chair Janet Yellen will leave the board in February creates a fourth vacancy for President Trump to fill, making it trickier for investors to bet on the central bank’s interest rate trajectory next year. While the Thanksgiving holiday gives traders an excuse to pause, equities are heading into the end of the year near their peaks, with investors optimistic about global growth and company earnings.

Meanwhile the collapse in the US Treasury curve continuedwith 2s10s moving below 60bps, and screaming inversion as soon as early next year.  At the same time, The gap between French and German borrowing costs on Tuesday narrowed to its tightest level since before the euro zone debt crisis of 2010-2012.  Germany’s 10-year yield fell two basis points to 0.34%, the lowest in almost two weeks. Britain’s 10-year yield decreased four basis points to 1.257%, the lowest in almost two weeks. Japan’s 10-year yield dipped one basis point to 0.033%, the lowest in more than a week.

Oil prices rose on expectations of an extended OPEC-led production cut, although rising output in the United States capped gains. Brent crude futures were up 0.78 percent to $62.72.     West Texas Intermediate crude fell 0.6 percent to $56.09 a barrel. Gold increased 0.3 percent to $1,280.39 an ounce. Copper gained 0.3 percent to $3.13 a pound, the highest in more than a week.

Expected economic data include Chicago Fed National Activity Index and existing home sales. Companies including Medtronic, Lowe’s, Salesforce, Analog Devices, HP Enterprise and HP Inc. are reporting earnings

Bulletin Headline Summary from RanSquawk

  • EU bourses firmer this morning with auto names racing away amid a positive note from Goldman Sachs
  • FX price action fairly tepid thus far.
  • Looking ahead, highlights include US existing home sales, APIs, ECB’s Coeure and Fed’s Yellen

Market Snapshot

  • S&P 500 futures up 0.2% at 2,586.75
  • STOXX Europe 600 up 0.3% at 387.49
  • MSCI Asia up 0.9% to 171.57
  • MSCI Asia ex Japan up 1.1% to 565.37
  • Nikkei up 0.7% to 22,416.48
  • Topix up 0.7% to 1,771.13
  • Hang Seng Index up 1.9% to 29,818.07
  • Shanghai Composite up 0.5% to 3,410.50
  • Sensex up 0.4% to 33,492.20
  • Australia S&P/ASX 200 up 0.3% to 5,963.52
  • Kospi up 0.1% to 2,530.70
  • German 10Y yield fell 1.7 bps to 0.346%
  • Euro down 0.08% to $1.1724
  • Italian 10Y yield fell 2.7 bps to 1.543%
  • Spanish 10Y yield fell 2.4 bps to 1.491%
  • Brent futures up 0.8% to $62.69/bbl
  • Gold spot up 0.3% to $1,280.53
  • U.S. Dollar Index little changed at 94.08

Top Overnight News

  • U.K. Prime Minister Theresa May won the backing of ministers on both sides of her divided cabinet to offer the European Union more money to break the Brexit talks deadlock; Barring some major breakthrough, global banks will implement their relocation plans early next year to guarantee they’re able to have new offices inside the EU running by the time the U.K. exits
  • German Chancellor Angela Merkel said she’s ready to face voters again to break the country’s political stalemate, betting they won’t blame her for failed talks on forming a coalition
  • Germany: FDP chairman reaffirms rejection of four-party talks; SPD reiterates they will not be part of a grand coalition
  • Putin held a surprise meeting with Syria’s Bashar al-Assad, kicking off a diplomatic drive this week to outline the terms of an end to the Middle Eastern country’s civil war; Putin will speak by phone with Trump later Tuesday, the Kremlin said
  • The ECB is likely to make multiple small adjustments to its guidance on monetary policy next year rather than any major change in language as it ends quantitative easing, according to euro-area officials familiar with the thinking of policy makers
  • BOE: Cunliffe says CPI will peak in 4Q 2017, it’s possible to wait before tightening; McCafferty says equilibrium unemployment rate may be below 4.5%
  • RBA’s Lowe: no strong case for a near-term adjustment in policy, more likely that next move in rates will be higher; increasingly likely that inflation will be subdued for some time yet
  • MNI: PBOC deleveraging campaign may ease somewhat in 2018; PBOC will continue to manage currency and capital controls for at least another decade, according to people familiar
  • Turkey Central Bank: has decided to provide all funding from its late liquidity window effective Wednesday, which will raise the weighted average cost of funding by 25bps
  • Nestle Is Said to Be Among Potential Hain Celestial Suitors
  • AT&T, U.S. Prepare to Battle in Court Over Time Warner Merger
  • Cannabis Grower Aurora Plans to Go Hostile With CanniMed Bid
  • ECB Is Said Likely to Take Small Steps in QE Exit Guidance

Asian equity markets were higher across the board as the region took the impetus from the positive close on Wall St, with Nikkei 225 (+0.9%) underpinned as exporters benefitted from JPY weakness. The benchmark Japanese index briefly broke above the 22,500 level as stocks coat-tailed on the rebound in USD/JPY, with Toshiba reprieved from yesterday’s slump to sit among the biggest gainers. ASX 200 (+0.3%) also traded with broad-based optimism across its sectors albeit to a lesser extent and Chinese markets completed the upbeat picture following another significant liquidity operation by the PBoC, with the Hang Seng (+1.5%) leading on continued gains in its largest weighted stock Tencent which recently became a member of the exclusive USD 500bln market-cap-club. Finally, 10yr JGBs were relatively flat throughout the session with demand subdued by the broad positive risk tone and a tepid longer-dated enhanced liquidity auction, although a mild uptick was seen in late trade as prices broke above 151.00. PBoC injected CNY 130bln in 7-day reverse repos, CNY 40bln in 14-day reverse repos and CNY 10bln in 63-day reverse repos. Net of maturities, the injection was only CNY 10bn however. PBoC also set the CNY mid-point weaker at 6.6356 vs Prev. 6.6271. Elsewhere, the Japanese Government to cut 30 and 40 year JGB supply in FY 2018/2019.

Top Japanese News;

  • Top Fund Backs Tencent to Drive Hong Kong Index Even Higher
  • China H Shares Jump to Two-Year High as Financial Firms Rally
  • Richest Asian Banker Sees Once-in-Lifetime India Opportunity
  • Turkey Lifts Bank-Funding Costs as Lira Weakens to All-Time Low

European equities modestly higher this morning (Stoxx 600 +0.2%), with positive notes out from Goldman Sachs, who are overweight European automakers.  Goldman said in a Europe strategy note that “deep value sectors” (autos, oil, and utilities) will help Stoxx Europe to return 12% in next 12 months. As a result, European automakers outperform led by VW for a second straight day, with the SXAP index advancing as much as 1.9%, best of 19 groups on the Stoxx Europe 600 benchmark (Volkswagen +3.8%, Porsche +2.7%, BMW +2%, Daimler +1.7%).  Additionally, Imperial Brand shares rallied after their CEO change, as analysts speculate that this could increase the likelihood that the company will be taken over by Japan Tobacco. Airliner EasyJet is flying high this morning following strong financial results. Bunds are taking another look at 163.00+ levels having faded rallies above the big figure on several occasions recently. The bullish fundamentals and flow/positioning motives are well known and documented, but chart-wise market contacts note that support around 162.86 (rising trendline and Monday’s late Eurex base) held on the downside, prompting some intraday buying for a bounce to  163.06 resistance initially and then 163.16 (yesterday’s session peak) vs a high so far at 163.15. Beyond that, 163.22 needs to be breached to expose 163.40 and this month’s 163.63 peak. However, another retreat and failure to retain grasp of the 163.00 handle will bring 162.82 back into play as support (Monday’s actual intraday low), and on a break those short term longs not booking profit at 163.06 are expected to bail. Turning to Gilts, more upside also seen and a return to the 125-plus zone, at 125.29 for a 33 tick gain on the day vs 12 tick loss at one stage, before easing back slightly on larger than forecast UK PSNB shortfalls.

Top European News

  • Brexit-Hit Banks Said to Start Moving Staff Abroad in Early 2018
  • Paris, Amsterdam Brexit Winners as Coin Toss Assigns EU Agencies
  • May Prepares New Brexit Offer After Talks With Ministers
  • U.K. Budget Deficit Widens as Inflation Boosts Debt Costs
  • Uniper Tells Shareholders to Reject Fortum’s Takeover Offer
  • EasyJet Reaping Benefit of Ryanair Retreat as Winter Prices Gain

In FX markets, price action has been relatively contained thus far. The USD index is firmer around the 94.000 handle in thin holiday-impacted trade, with the USD gaining ground vs most major counterparts on a generally more risk-on mood. EUR has been resilient in the face of Germany’s struggles to form a new Government and the threat of another election. EUR/USD continues to find support ahead of stops around 1.1720 and bids at 1.1700, with reported fixing demand in Asia propping the pair, but the 100 DMA around 1.1745-50 capping recovery gains. Elsewhere, AUD has rebounded from overnight lows post-RBA minutes, as Governor Lowe underlined that the next move in rates will be up, although the lead time to any tightening remains lengthy. Meanwhile, GBP was unreactive to the latest public borrowing data as markets look to see whether or not PM May will get the green-light for an enhanced divorce bill offer to the EU.

In commodities, WTI and Brent crude futures have continued to climb through the European session with energy related newsflow on the light-side as prices retrace some of the declines seen in the early stages of yesterday’s session. Energy markets are looking ahead to next week’s OPEC meeting, however, markets are firmly expecting an extension to existing production cuts in lieu of recent rhetoric from the cartel. In metals markets, gold only managed to nurse some of yesterday’s losses overnight as a broad positive risk tone kept safe-haven demand subdued. Copper maintained most of the prior session’s gains with prices supported by the risk appetite and amid gains in Chinese steel and iron ore prices on optimism for increased demand following the winter season.

Looking at the day ahead, central bank speakers will likely be the centre of attention again with Fed Chair Yellen due to speak in the evening as part of a series with former BoE governor Mervyn King, while the ECB’s Coeure chairs a panel in Frankfurt in the afternoon. Datawise, UK public sector net borrowing and CBI trends data for October and November are due, while in the US the Chicago Fed national activity index and existing home sales data for October is due.

US Event Calendar

  • 8:30am: Chicago Fed Nat Activity Index, est. 0.2, prior 0.2
  • 10am: Existing Home Sales, est. 5.4m, prior 5.39m
  • 10am: Existing Home Sales MoM, est. 0.19%, prior 0.7%
  • 6pm: Fed’s Yellen Speaks at Stern Business School

DB’s Jim Reid concludes the overnight wrap

There wasn’t much contagion yesterday after the surprise collapse in German coalition talks late on Sunday night. Over the last couple of years negative market reaction to political shocks has often been over before you can digest it fully. Examples being the Greek and Brexit referendums and the Trump election results. Although the German coalition talks collapsing is much lower key than these events, it was still interesting that the DAX was only negative for 1 hour 16mins and that the Euro had snapped back into positive territory 37 minutes earlier even if it  did soften again as the day progressed closing -0.49% against the dollar. The DAX closed +0.50% (high to low had been as much as +1.23%) and the Stoxx 600 +0.67% (range 0.91%).

Overall it’s hard to see what the solution is to the gridlock in Germany but it’s also hard to see it being that negative for markets other than at the margin. Mrs Merkel yesterday effectively ruled out a minority government and the SPD continue to rule out a return to a Grand Coalition so unless talks can be reignited, a snap election early next year seems increasingly likely. As an outsider not as familiar with the German election process as many of my readers I can’t help wondering how a fresh election will help much with recent polls seemingly not changing that much from the September 24th election. However, perhaps the campaigning would persuade enough voters to change their mind that the coalition math might be easier. Unlikely but possible.

The good news from our economists in Germany is that the political system means there’s no power vacuum and thus no time pressure to progress things. This probably helped prevent the market reacting too negatively yesterday although it can’t be too positive at the margin for Brexit talks and for fresh Macron/ Merkel European initiatives in the near-term. For more on the technicalities and options open now see the note “Coalition talks collapsed – unchartered territory ahead” from our German economists yesterday.

Overnight, the Fed’s Yellen has confirmed that she will be stepping down from the Board of Governors once Mr Powell is sworn into the office. Her vacancy will give President Trump a fourth spot to fill in the new Fed, including the Vice Chairman spot. Elsewhere, Trump has redesignated North Korea as a state sponsor of terrorism and the Treasury department is  expected to announce additional sanctions today. Notably, Secretary of State Tillerson “still hopes for diplomacy” with the State. We wonder whether North Korea will retaliate with some form of defiance after this so watch out for that. This morning in Asia, markets have followed the positive lead from the US. The Hang Seng (+1.30%), Nikkei (+0.93%), Kospi (+0.15%) and Shanghai Comp (+0.40%) are all up as we type.

Turning to Brexit headlines, it seems that in addition to the stalemate on UK’s financial settlement to the EU, there are other unresolved issues before talks can move onto trade and a transition deal. Chief EU Brexit negotiator Barnier has noted that the Irish border will require a specific solution and it’s up to “those who wanted Brexit” to come up with those solutions.  Elsewhere, he has warned “the legal consequence of Brexit is that the UK financial services providers lose their passport (rights to the EU bloc)”. Also press reports last night suggested that PM May has cabinet approval to double the settlement offer from the current EUR20bln.

Moving onto central bankers’ commentaries now. The ECB’s Draghi reiterated that despite the sound economic recovery, “underlying inflation pressures are still subdued as labour market  slack remains significant….(and that we) still need time to translate into dynamic wage growth”. On non-performing loans in the EU bloc, he cautioned that we need to “…work together to cope with this problem….but at the same time doesn’t create the destabilizing effects that people fear”. On Brexit, he noted it was difficult to properly analyse, mainly because “we don’t have yet a precise or even imprecise view of what the negotiating platform will be”. Notably, he said that the Brexit “transition can be managed in a smooth way…but it should be done without compromising over the integrity of the single market”, although “this is easier to be said than done”.

Following on, BOE policy maker Mr Ramsden has warned that Brexit could put the economy in an “unusual” slow down for years. He noted “given the long horizon over which the effects of Brexit could play out, we’re likely to be on the flat part of the saucer for some time”. On his decision to dissent on the recent rate hike, he noted there may be more room for the economy to grow without price gains, noting “…one must pay close attention to any signs that above target inflation is feeding through to second-round effects in domestic costs…so far, that doesn’t seem to be the case”.

Now recapping other markets performance from yesterday. US equities all strengthened, with both the S&P and Nasdaq up c0.1% and Dow up 0.31%. Within the S&P, telco (+0.97%) and financials stocks rebounded and led the gains, with partial offsets from health care and utilities names. European markets were all modestly higher despite the German political instability.  Across the region, the Stoxx 600 (+0.67%), DAX (+0.50%) and CAC (+0.40%) rose modestly, while the FTSE 100 was the relative underperformer (+0.12%). The modest risk on bias was evident in volatility measures, with the VIX down for the third consecutive day (-6.8% to 10.65) while the VSTOXX also fell -7.05% after spending only 43 minutes higher at the open.

Over in government bonds, core bond yields were mixed but little changed (UST 10y: +2.3bp; Bunds +0.2bp; Gilts -0.3bp), while peripherals outperformed with Italy and Spanish yields down 3-4bp. Elsewhere, the flattening across the Treasury curve has continued with the 5s30s curve c3bp flatter to 68.8bp, marking a fresh 10 year low.

Turning to currencies, the US dollar index and Sterling gained 0.44% and 0.12% respectively, while Euro fell 0.49% following the aforementioned developments in Germany. In commodities, WTI oil dipped 0.58%, in part as investors await potential confirmation of production cuts in the upcoming OPEC meeting on 30th November. Elsewhere, precious metals weakened (Gold  -1.20%;Silver -2.30%), with Gold down the most since late September, while other base metals were mixed (Copper +0.91%; Zinc -0.06%; Aluminium -1.44%).

Away from the markets, DB’s China research team have published another note looking at China’s macro risks. They have noticed new signs of a tightening in fiscal and monetary policies over the past week. For example, on the fiscal front, the Ministry of Finance issued a document to tighten control over public private partnership projects. On monetary front, the  government released draft guidelines on the asset management sector, which from a macro perspective could structurally constrain financial leverage and further tighten credit growth. Overall, the team believes these new measures are positive for China in the long term, but in the next 6 months they will likely cause the economy to slow.
Elsewhere the latest ECB holdings were released yesterday. Net CSPP

purchases last week was €2.33bn and Net PSPP purchases €12.27bn. This left the CSPP/PSPP ratio at 19.0% last week (15.4% over the last 4 weeks vs. 11.5% before QE was trimmed in April 2017). Although we don’t think CSPP will be trimmed much after the January taper last week’s buying seemed anomalous in part as issuance was high over the period and the ECB may have taken advantage of this, particularly as the upcoming holiday season might bring liquidity challenges later on.

Moving to the limited macro data releases from yesterday. In the US, the October Conference board leading index was above expectations at 1.2% mom (vs. 0.8% expected) and 5.2% yoy – the highest since May 2015. In Germany, the October PPI was in line at 0.3% mom and 2.7% yoy. In Japan, we saw a trade surplus of JPY323bn in October, which was modestly larger than expected.

Looking at the day ahead, central bank speakers will likely be the centre of attention again with Fed Chair Yellen due to speak late in the evening as part of a series with former BoE governor Mervyn King, while the ECB’s Coeure chairs a panel in Frankfurt in the afternoon. Datawise, UK public sector net borrowing and CBI trends data for October and November are due, while in the US the Chicago Fed national activity index and existing home sales data for October is due.

 

 

3. ASIAN AFFAIRS

i)Late MONDAY night/TUESDAY morning: Shanghai closed UP 18.10 points or .53% /Hang Sang CLOSED UP 557.76 pts or 1.91% / The Nikkei closed UP 154.72 POINTS OR 0.70%/Australia’s all ordinaires CLOSED UP 0.27%/Chinese yuan (ONSHORE) closed DOWN at 6.6336/Oil UP to 56.55 dollars per barrel for WTI and 62.36 for Brent. Stocks in Europe OPENED GREEN ONSHORE YUAN CLOSED DOWN AGAINST THE DOLLAR AT 6.6336. OFFSHORE YUAN CLOSED WEAKER TO THE ONSHORE YUAN AT 6.6362 //ONSHORE YUAN WEAKER AGAINST THE DOLLAR/OFF SHORE WEAKER TO THE DOLLAR/. THE DOLLAR (INDEX) IS STRONGER AGAINST ALL MAJOR CURRENCIES. CHINA IS   VERY HAPPY TODAY.(MARKETS STRONG)

3 a NORTH KOREA/USA

NORTH KOREA/SOUTH KOREA

 

3b) REPORT ON JAPAN

3c CHINA REPORT.

 

China to crackdown online lenders and they are crashing

(courtesy zerohedge)

Chinese Online Lenders Are Crashing After Credit Crackdown

The ADRs of several Chinese lenders, such as recently IPO’d Qudian and Hexindai, are crashing following a report from Netease that the country has decided to halt approvals for new online microlenders, citing risky cash-loan businesses at some firms.

Bloomberg reports that the Netease report raised concern that the lenders, some of which just recently listed in the U.S., could be subject to further restrictions.

ADRs of Qudian (green) and China Rapid Finance (blue) fell as much as 20 percent, with Hexindai (red) and Yirendai also dropping…

Adding to the pain, state-backed business publication Yicai Global earlier said Qudian suffered a data leak related to millions of student users, citing a Nov. 20 article from local media outlet Yibencaijing.

*  *  *

Once again the greedy, make-a-quick-buck, what-could-go-wrong, US equity market investor is left holding the bag… Will they ever learn?

end

4. EUROPEAN AFFAIRS

 

Bill Blain outlines 4 major threats that can bring Europe crashing down:

(courtesy Bill Blain/Mint Partners)

Ignore Merkel And Brexit: According To Bill Blain, A New Threat Can Bring Europe Crashing Down

Blain’s Morning Porridge, Submitted by Bill Blain of Mint Partners

Europe is like a 4D game of Jenga, and Germany is a very wobbly block – as are the banks

Europe is an enormous 4 dimensional game of Jenga.  At the moment there are far too many blocks in play. Some of them are likely to leave the edifice teetering but standing. The question is: will any cause it to tumble?

Top of the wobbly blocks list is Merkel – what happens next in Germany? The CDU’s disastrous shift left has opened the door for the extreme right, and has fractured her own support.

Merkel’s survivability is questionable. In her wake, all efforts to rejig Europe via closer union and monetary/fiscal harmonisation via banking union are absolutely on hold while the German constitutional crisis (yep, for that is what it is) plays out.

Markets don’t seem particularly worried – they have become blasé about political risk and look to the upside of Germany’s apparent rosy and robust financial strength. What’s not to like about Germany?  What can possibly go wrong – it regards the current Merkel issue as a short-medium term minor concern. Get over it.

On a purely German basis they might be right. The critical thing for Europe is who follows Mutti?

Merkel’s threats to call another vote rather than continue coalition talks looks like bluster – sounds like she’s trying to scare the opposition parties into a deal rather than go through the uncertainty of  second election. If it comes to a second vote, it’s another miscalculation.

The question being asked yesterday was “who replaces her?” She’s been inordinately successful ensuring all upcoming potential political rivals were snuffed out, but one name I heard from two good sources is Jens Spahn. If you’ve never heard about him (and since he’s a German politician you probably haven’t), this lays out where he’s coming from.

Clearly I have no right to speculate on what happens in German politics when UK politics is such a mess. However, I am indebted to my colleague Steve Previs for pointing out the similarities between the UK and Germany.

Spot the difference and who said what: “No deal is better than a bad deal” and “No coalition is better than a bad coalition”.

Of course, Brexit is the second wobbly Jenga block. May is looking likely to up her divorce offer – which will further destabilise her own position but might force recalcitrant Europeans to notice. I doubt itThey are currently looking to the East.. not the West. Ahead of tomorrow’s UK budget, there is some interesting stuff in the papers about how European budget spending will have to be slashed post-Brexit. The pain will be felt across the European soft-underbelly!

But the wobbliest Jenga Block might remain the European financial system – and I don’t mean moving the EBA to Paris. (Good luck to them. After all, the French government would never ever be overly cosy with banks… would it..?

The latest wizard wheeze from the ECB is a real sweetie… according to a discussion paper published by the ECB last week on revision the Union’s crisis management framework; if a bank looks wobbly, then: “covered deposits and claims under investor compensation” should be replaced by “discretionary exemptions”.

Crashing minor chords.

The issue of German liability for the new European deposit insurance scheme (EDIS) was one of the issues that caused the coalition talks to fail: no Germans politician wants associated with policies that would mean paying the liabilities of Italian banks!

It might be even more confusing. Has the ECB just turned the basis of finance on its topsy-turvy head – again? If you’ve been buying covered bonds issued by undercapitalised, over-NPL’d European banks – then worry. By putting “covered deposits” in the firing line, covered bonds lose secured status and look subject to the same bail-in **** and all the other uncertainty the ECB leaves in its wake. Pfanbriefe anyone? Suckers!

And getting rid of depositor credit insurance? What a marvellous idea. It certainly fits with the European dream.. You know the one: how Europe would work much better if there just weren’t any pesky complaining citizens to worry about. Why not just Europeanise the whole European banking sector, take everyone’s money and give it to French farmers and Brussels Eurocrats?

It would be much simpler.

Of course it’s all about the Germans refusing to bail out feckless foreign types.. (Of course it is.. everything in Europe is about the Germans..) It’s a carrot and stick approach to solving the Italian bank conundrum – if they reduce NPLs, then the ECB will graciously bail depositors via the EDIS. Otherwise, the Germans aren’t going to give them access.

The ECB knows best. (Which is to do what the Germans tell it to do…)

end

5. RUSSIA AND MIDDLE EASTERN AFFAIRS

Lebanon/Israel

 

The Lebanese army is now on full combat readiness at the southern border ready to counter Israel

 

(courtesy zerohedge)

Lebanese Army On “Full Combat Readiness” At Southern Border To Counter “Israeli Enemy”

Two days after Israel provided the first ever official confirmation of covert ties with Saudi Arabia, a step many analysts see as a precursor to future conflict in the Middle East involving adversaries Iran and Lebanon, on Tuesday the head of the Lebanese Army told the military to be at “full combat readiness” to face “the Israeli enemy” at the country’s southern border. The announcement comes as Arab nations, including Saudi Arabia, vow to tighten their grip on Lebanon’s Hezbollah militia.

The army needs to be prepared to “confront the threats and violations of the Israeli enemy and its hostile intentions against Lebanon,” Joseph Aoun said on Tuesday, while urging the army to cooperate with United Nations forces in Lebanon under UN Security Council Resolution 1701, adopted to resolve the 2006 Israel-Lebanon conflict. The statement came after Lebanese President Michel Aoun said that “Israeli targeting still continues and it is the right of the Lebanese to resist it and foil its plans by all available means,” according to Reuters.

قائد الجيش للعسكريين: أدعوكم إلى الجهوزية التامة على الحدود الجنوبية لمواجهة تهديدات العدو الإسرائيلي وخروقاته، وما يبيّته من نيّات عدوانية ضد لبنان وشعبه وجيشه، كما إلى السهر الدائم على حسن تنفيذ القرار 1701 بالتنسيق والتعاون مع قوات الأمم المتحدة في لبنان، حفاظاً على الاستقرار.

President Aoun’s remarks were echoed by Lebanese Foreign Minister Gebran Bassil, who also cautioned Tel Aviv against sparking a war, according to RT. Lebanon is ready to act, but will do its utmost to prevent Israel from an invasion, he told RT last week. “We should restrain Israel from starting a war exactly because Lebanon is sure to win it,” he said.


Lebanese Army soldiers. Hassan Abdallah / Reuters

As reported at the start of the month, Lebanon has been undergoing a deep political crisis after Prime Minister Saad Hariri abruptly resigned on November 4 in a televised statement from Saudi Arabia. In his resignation address, Hariri accused Iran and Shiite Hezbollah militia of sowing strife in Arab countries.

As further reported, on Sunday the Arab League called an emergency meeting in Cairo blaming Iran for destabilizing the region. The alliance also described Hezbollah as a terrorist organization, but stopped just short of threatening any action against either. Ahmed Aboul Gheit, the Arab League’s secretary-general, said its members may reach out to the UN Security Council to discuss possible steps against the Islamic republic.

Meanwhile, Tehran dismissed the Arab League statement on Iran, saying it was “full of lies” and the product of Saudi “pressure and propaganda.” Iranian Foreign Ministry spokesman Bahram Ghasemi called on Saudi Arabia to stop its “barbaric attacks” in YemenHe also called on Riyadh to drop its embargo on Qatar, a country which has close ties to Tehran.

 On Tuesday, president Aoun defended Hezbollah, saying his country had been subject to Israeli invasions for decades and therefore had the right to protect itself. Aoun rejected “insinuations accusing the Lebanese government of partnering in terrorist acts.”

“Lebanon has confronted Israeli aggressions from 1978 until 2006 and has been able to liberate its territories,” he added, as cited by National News Agency.

For those who may have missed some of the recent, rapidly moving events in the region, here is a quick rundown:

Saudi Arabia, a regional arch-rival of Iran, has recently demanded that the Lebanese government pressurize Hezbollah to disarm, and also threatened to take action against Iran’s “aggressive” involvement in the affairs of Yemen and Lebanon. Speaking to Reuters last Thursday, Saudi Foreign Minister Adel Al-Jubeir said Riyadh is “reacting to that aggression and saying enough is enough.”

 

The bellicose statements from Saudi Arabia notably coincided with comments made by Israel’s top political and military brass. On Sunday, Israel’s Energy Minister Yuval Steinitz told Israeli Army Radio that cooperation “with the moderate Arab world, including Saudi Arabia, is helping us curb Iran.” Steinitz added that his country, which fought Arab nations in several wars, is “usually the party that is not ashamed” of such ties.

 

The disclosure comes days after Lieutenant General Gadi Eisenkot, chief of staff of the Israeli Defence Forces (IDF), said that Tel Aviv is willing to contribute to “a new international alliance” in the Middle East, which is determined “to stop the Iranian threat.”He said that, while Israel does not planning on striking Hezbollah, it is ready to share intelligence on Iran with Saudi Arabia. Tel Aviv and Riyadh do not have diplomatic ties with each another.

Earlier this week, Iran reiterated once again it is determined to bring lasting peace to Syria, while its Gulf neighbors are sparking tensions in the region. Tehran has been working with international allies such as Russia and Turkey to ensure ceasefire in Syria and pave the way for political reconciliation, Iranian Foreign Minister Javad Zarif said on Sunday. At the same time, Riyadh “fuels terrorists, wages war on Yemen, blockades Qatar [and] foments crisis in Lebanon,” Zarif tweeted. The Iranian diplomat posted his statement after a new round of talks with his Russian and Turkish counterparts, Sergey Lavrov and Mevlut Cavusoglu, respectively who met in Antalya, Turkey, on Sunday to discuss the Syrian conflict.

On Wednesday, the president of Iran and Turkey are set to meet with Russian president Putin in Sochi, where a day after a previously undisclosed meeting with Syrian leader al-Assad, Putin will seek to formalize the end of the Syrian civil war and establish the framework for the future in the middle east, one which certainly will include a prominent role for the Kremlin which has eagerly stepped into the power vacuum left by the receding US presence from the region.

end

 

Saudi Arabia

Publicly traded Kingdom holdings seems to be in trouble as the Saudi purge is playing havoc to its financing

 

(courtesy zerohedge)

Saudi Purge Claims Its Latest Corporate Victim As Kingdom Holdings Sees $1.3 Billion Bank Deal Collapse

For the past couple of weeks we’ve written frequently about the sudden political turmoil in Saudi Arabia that resulted in two Saudi princes being killed in a span of just 24 hours and dozens others being detained on charges of corruption while having their bank accounts frozen.  Here are couple of our most recent background posts on the topic:

Now, per an exclusive report from Reuters, it appears as though the latest casualty of the Saudi shakeup is a financing deal sought by the $8 billion dollar Kingdom Holdings which is owned and run by Prince Alwaleed bin Talal...at least until he was recently arrested that is.

Kingdom Holding’s plan to borrow money to fund new investments has stalled because owner Prince Alwaleed bin Talal has been detained in Saudi Arabia’s anti-corruption crackdown, according to four banking sources familiar with the matter.

 

Kingdom 4280.SE had approached banks to obtain the loan, but the financing plan has been held up because the lenders are worried about potential repercussions if they lend to the prince’s company, the sources said.

 

One of the sources, who was approached for the loan, said it would have been worth roughly 5 billion riyals ($1.3 billion).

SA

For those who aren’t familiar with the company, Kingdom Holdings is a leading Saudi investment firm with stakes in prime real estate including New York’s Plaza Hotel and London’s Savoy Hotel.

The busted bank deal apparently surfaced after Kingdom Holdings attempted to pledge an equity position it recently acquired in Banque Saudi Fransi as collateral for a new $1.3 billion loan but several banks balked until the charges levied against Prince Alwaleed bin Talal were resolved.

Kingdom completed the acquisition of a 16.2 percent stake in local lender Banque Saudi Fransi (BSF) 1050.SE in September, buying about half of France’s Credit Agricole stake in BSF for 5.76 billion riyals.

 

The company approached banks to obtain a loan that would have been secured by its BSF stake, as the company wanted to leverage the newly acquired shares in order to make new investments, according to the sources.

 

One of the four sources, a senior banker at a Saudi financial institution, said the loan deal would not go ahead until the situation facing the prince was resolved.

Of course, Kingdom Holdings is likely not the only Saudi company finding it difficult to tap debt markets these days as Moody’s recently warned that a prolonged freeze of bank accounts could “damage corporate credit quality” all across the country.

Eight Saudi and international bankers, including the four sources, said in addition to the Kingdom loan, a range of other transactions involving clients who are directly or indirectly involved in the detentions had also been put on hold.

 

Banks have not reached the point of recalling existing loans, but they have increased the level of scrutiny for some new financing, the bankers said.

 

In a report last week, debt rating agency Moody’s said a prolonged freeze of bank accounts in Saudi Arabia could damage corporate credit quality in the kingdom because large depositors were often large borrowers and business owners.

 

“Saudi Arabia’s corporate sector remains dominated by unlisted family-owned businesses with uneven governance and disclosures and frequent intermingling of individual and corporate activities, which ultimately could expose corporates to these individuals’ frozen accounts,” Moody’s said.

Meanwhile, despite assurances from the Riyadh government that the economy would not suffer from the country’s political turmoil “because investigators are targeting only individuals, not their companies,” Kingdom Holdings shareholders don’t seem to be convinced…

Kingdom

 

end

6 .GLOBAL ISSUES

Zimbabwe

The impeachment process to remove Mugabe as begun:

 

(courtesy zerohedge)

Zimbabwe Military Says Mugabe Impeachment Process Has Begun

Zimbabwe President Robert Mugabe baffled his country and the world last night when, instead of publicly announcing his resignation, he reaffirmed his intention to stay on as the head of state in Zimbabwe, and admonished members of his ruling ZANU PF party for their “arbitrary decision making” and “victimization.”

Mugabe’s defiance immediately spurred conspiracy theories, including one where military commanders who flanked Mugabe during his speech smuggled him an alternate version following the review of his initial draft.

 

Y’all need to watch closely. They legit switched ‘s speech or did something hella fishy. Smh. 

 

Rumors circulated that some ZANU PF lawmakers had fled the country to avoid participating in an impeachment vote, though they were later debunked, according to local media reports. Still, the military’s deadline for Mugabe’s resignation – initially set at noon local time on Monday – has come and gone, and Mugabe remains the nominal leader of Zimbabwe, even if he’s still under house arrest, according to BBC.

However, ZANU PF appears to be reaching the end of its patience with its long-time leader. In a media briefing, party member Paul Mangawana said Zimbabwe’s lawmakers will move to formally impeach Mugabe tomorrow, and that he could be formally removed from office as soon as Wednesday.

Discussions about the impeachment proceedings began Monday, Reuters added.

Reuters added that impeachment would represent an ignominious end to the career of the “Grand Old Man” of African politics, who was once lauded across the continent as an anti-colonial hero. Chief whip Lovemore Matuke told Reuters ZANU-PF members of parliament would meet at 1230 GMT to start mapping out Mugabe’s impeachment.

In the draft motion, the party accused Mugabe of being a “source of instability”, flouting the rule of law and presiding over an “unprecedented economic tailspin” in the last 15 years.

It also said he had abrogated his constitutional mandate by trying to position his unpopular wife, Grace, as his successor.

While the process of impeaching Mugabe looks complex on paper and involves a joint sitting of the Senate and National Assembly, then a nine-member committee of senators, then another joint sitting to confirm his dismissal with a two-thirds majority. However, constitutional experts said ZANU-PF had the numbers and could push it through in as little as 24 hours.

“They can fast-track it. It can be done in a matter of a day,” said John Makamure, executive director of the Southern African Parliamentary Support Trust, an NGO that works with the parliament in Harare.

A statement released Monday evening (local time) by Gen Chiwanga reaffirmed the military’s commitment to ensuring a peaceful transition of power.

 

View image on TwitterView image on TwitterView image on Twitter

A statement just released tonight by Gen. Chiwenga

 

One Zimbabwe lawmaker said there will be another caucus meeting for ZANU PF members beginning at 10 am local time Tuesday. It also noted that the President has called for a cabinet meeting. The MDCT, another party, will also be in caucus, while the president meets with his cabinet.

 

Tomorrow there will be another caucus meeting for ZANU PF at 10am, while at the same time the President has called for a cabinet meeting. The MDCT will be in caucus and I assure Zimbabwe that all MPs will put Zimbabwe First

 

However, ZANU PF’s chief whip said that if Mugabe calls a cabinet meeting, no ministers will attend.

 

President Robert Gabriel Mugabe & Vice President Grace Mugabe arrived at Robert Gabriel Mugabe International Airport, awaiting flight on Robert Gabriel Mugabe Airways after an afternoon capping graduands at Robert Gabriel Mugabe University situated along Robert Gabriel Mugabe Way

 

Despite the political upheaval – and the marches that occurred over the weekend – local media reported that people were going on with their lives, on their way to work, children were in class, vendors were on the streets and taxis were meandering through the streets of Harare.

However, while the demonstrations were peaceful, tanks were strategically positioned at Mugabe’s office and other key government institutions, a clear indication that the standoff is far from over.

end

Mugabe resigns

(courtesy zerohedge)

Zimbabwe President Robert Mugabe Resigns

Zimbabwe’s Speaker of Parliament Jacob Mudenda had barely finished reading the rules and regulations of how impeachment proceedings would proceed against President Robert Mugabe when the 93-year-old leader and former revolutionary surprised his colleagues by officially resigning the presidency – something he had been reluctant to do even after the military placed him under house arrest last week.

Both Reuters and the Associated Press confirmed that Mugabe had resigned, citing an announcement made by Mudenda.

 

BREAKING: President Robert Mugabe has resigned, Speaker of Parliament confirms

 

“I Robert Gabriel Mugabe in terms of section 96 of the constitution of Zimbabwe hereby formally tender my resignation… with immediate effect,” said speaker Mudenda, reading Mugabe’s letter.

“My decision to resign was voluntary on my part.”

Mugabe has ruled Zimbabwe since the country gained its independence from the UK in 1980.

end

Bloomberg reports on some positive developments with respect to NAFTA being saved.  Both the Cdn loonie and the Mexican peso rise.

(courtesy zerohedge)

Peso, Loonie Spike On Positive NAFTA News

With NAFTA negotiations currently taking place, and NAFTA currencies very sensitive to every headline, both the Peso and Loonie suddenly spiked on a Bloomberg headline that suggests that talks just may be progessing in a favorable fashion:

  • NAFTA DEAL NEAR ON TELECOM, ENERGY, E-COMMERCE:MEX BUSINESS REP

While details are lacking for now, USDMXN has charged lower on the headline, as any whiff of Nafta being saved sends both MXN and CAD surging. USDMXN is now at 18.8625 and USDCAD is at 1.275.

7.OIL ISSUES

 

Oil tops 57 dollars per barrel after another big drawdown

 

(courtesy zerohedge)

8. EMERGING MARKET

 

This is going to hurt joint venture partners  as bankrupt Venezuela is demanding oil without payment.  Obviously when dividends are declared they will get nothing. This oil is being used internally to feed its people

 

(courtesy zerohedge)

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

Euro/USA 1.1725 DOWN .0013/ REACTING TO MERKEL’S FAILED COALITION/ 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 GREEN 

USA/JAPAN YEN 112.56 UP 0.006(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 1.3227 down .0014 (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 1.2802 UP .00011(CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA)

Early THIS TUESDAY morning in Europe, the Euro FELL by 13 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1725; / Last night the Shanghai composite CLOSED UP 18.10 POINTS OR .53% / Hang Sang CLOSED UP 557.16 POINTS OR 1.91% /AUSTRALIA CLOSED UP 0.17% / EUROPEAN BOURSES OPENED ALL GREEN 

The NIKKEI: this TUESDAY morning CLOSED UP 154.72 POINTS OR 0.70%

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

2/ CHINESE BOURSES / : Hang Sang CLOSED UP 557.76 POINTS OR 1.91% / SHANGHAI CLOSED UP 18.10 POINTS OR .52% /Australia BOURSE CLOSED UP 0.27% /Nikkei (Japan)CLOSED UP 154.72 POINTS OR 0.70%

INDIA’S SENSEX IN THE GREEN

Gold very early morning trading: 1278.85

silver:$16.98

Early TUESDAY morning USA 10 year bond yield: 2.361% !!! DOWN 1/2 IN POINTS from MONDAY night in basis points and it is trading JUST BELOW resistance at 2.27-2.32%. (POLICY FED ERROR)

The 30 yr bond yield 2.771 DOWN 1 IN BASIS POINTS from MONDAY night. (POLICY FED ERROR)

USA dollar index early TUESDAY morning: 94.09 UP 1 CENT(S) from YESTERDAY’s close.

This ends early morning numbers TUESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now your closing TUESDAY NUMBERS \1 PM

Portuguese 10 year bond yield: 1.917% DOWN 4 in basis point(s) yield from MONDAY

JAPANESE BOND YIELD: +.033% DOWN 0  in basis point yield from MONDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.478% DOWN 4 IN basis point yield from MONDAY

ITALIAN 10 YR BOND YIELD: 1.777 DOWN 3 POINTS in basis point yield from MONDAY

the Italian 10 yr bond yield is trading 29 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: +.351% DOWN 1 IN BASIS POINTS ON THE DAY

END

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IMPORTANT CURRENCY CLOSES FOR TUESDAY

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

Euro/USA 1.1739 UP.0002 (Euro UP 2 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 112.40 DOWN 0.143(Yen UP 14 basis points/

Great Britain/USA 1.3235 UP 0.005( POUND UP 5 BASIS POINTS)

USA/Canada 1.2762 DOWN  .0048 Canadian dollar UP 48 Basis points AS OIL ROSE TO $56.71

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

This afternoon, the Euro was UP 2 to trade at 1.1739

The Yen ROSE to 112.40 for a GAIN of 14 Basis points as NIRP is STILL a big failure for the Japanese central bank/HELICOPTER MONEY IS NOW DELAYED/BANK OF JAPAN NOW WORRIED AS AS THEY ARE RUNNING OUT OF BONDS TO BUY AS BOND YIELDS RISE

The POUND ROSE BY 5 basis points, trading at 1.3235/

The Canadian dollar ROSE by 48 basis points to 1.2762 WITH WTI OIL RISING TO : $56.71

The USA/Yuan closed AT 6.6290
the 10 yr Japanese bond yield closed at +.033% DOWN 0  IN BASIS POINTS / yield/
Your closing 10 yr USA bond yield DOWN 1 IN basis points from MONDAY at 2.361% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.7680 DOWN 4 in basis points on the day /

Your closing USA dollar index, 93,97 DOWN 11 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 TUESDAY: 1:00 PM EST

London: CLOSED UP 21.88 POINTS OR 0.30%
German Dax :CLOSED UP 108.88 POINTS OR 0.83%
Paris Cac CLOSED UP 25.70 POINTS OR 0.48%
Spain IBEX CLOSED DOWN 32.10 POINTS OR 0.32%

Italian MIB: CLOSED UP 137.19 POINTS OR 0.62%

The Dow closed UP 160,80 POINTS OR .69%

NASDAQ WAS closed UP 71.76 Points OR 1.06% 4.00 PM EST

WTI Oil price; 56.71 1:00 pm;

Brent Oil: 62.43 1:00 EST

USA /RUSSIAN ROUBLE CROSS: 59.14 DOWN 23/100 ROUBLES/DOLLAR (ROUBLE HIGHER BY 23 BASIS PTS)

TODAY THE GERMAN YIELD RISES TO +.351% 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:$56.92

BRENT: $62.51

USA 10 YR BOND YIELD: 2.356% (ANYTHING HIGHER THAN 2.70% BLOWS UP THE GLOBE)

USA 30 YR BOND YIELD: 2.760%

EURO/USA DOLLAR CROSS: 1.1740 up .0003

USA/JAPANESE YEN:112.44 down 0.114

USA DOLLAR INDEX: 93.97 down 11 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.3239 : down 2 POINTS FROM LAST NIGHT

Canadian dollar: 1.2781 up  32 BASIS pts

German 10 yr bond yield at 5 pm: +0.351%

END

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

TRADING IN GRAPH FORM FOR THE DAY

Yield Curve Crash Continues As Stocks Surge On Biggest Short-Squeeze In 11 Months

Ignore gold, ignore earnings expectations, ignore the dollar, ignore the yield curve… and…

 

German stocks sum it all up… Buy The F**king German Government Crisis… (even as EUR stays weaker)

 

Record Highs all around in ‘Murica…

 

As once again the European Session (green boxes) cominated the ramp…

 

As VIX was slammed back to a 9 handle…

 

Here’s a couple things though…

 

The last 5 days have been quite a ride for ‘shorts’… as “Most Shorted” stocks have soared over 6% – This is the biggest short-squeeze since Dec 8th 2016 (which was followed by a 6% decline)

 

High yield bond prices rose once again but remain below the 200DMA for the 11th straight day (the longest period since Q1 2016)

 

But the ultra-sensitive Small Caps love the tiny relief in HY…

 

Treasury yields were mixed oncoe again as the long-end rallied (30Y -2bps) and short-end was sold (wY +2bps)…

 

For the first time since early Nov 2007, the spread between 2Y and 30Y Treasury yields has crashed below 100bps…

 

In fact the yield is crashing this year at the fastest rate in at least a decade

 

The Dollar Index declined once again…

 

Bitcoin surged to yet another record high…

 

WTI/RBOB rallied today ahead of tonight’s API data…

 

Gold and Silver held on to early gains today but faded in the afternoon…

 

And here is why stocks are rallying to record highs… because earnings expectations are tumbling, silly!!

Morning trading NY
the yield curve continues to collapse as the 2 yr/10 yr plunges below 60 basis points with the 5 over 30 yr plunging to 65 basis points.  It sure seems that the yield curve is heading for inversion and that generally means recession
(courtesy zerohedge)

Yield Curve Carnage Continues

The US Treasury yield curve collapse continued its unending path to inversion overnight with 2s10s plunging to sub-60bps and 5s30s hits a 65bps handle for the first time since Nov 2007.

 

2s10s has flattened for 3 days straight, 6 of the last 7 days, and 14 of the last 17 days to a 58bps handle…

 

5s30s has flattened 3 days straight, 6 of the last 7 days, and 16 of the last 19 days to a 65bps handle…

 

As a reminder, it took The Fed hiking rates to 5.25% in the last cycle before investors finally gave in and financial conditions tightened… for now as financial conditions ease towards record levels, despite a hiking and normalizing Fed, so the yield curve collapse accelerates…

 

As a gentle reminder to all those shrugging this off, BofA reminds that in seven out of seven occasions in the last 50 years an inverted yield curve has been the prelude to recession.

In fact, the last four times the US yield curve was at these levels, the US economy was already in recession…

 

end
A very good question:  why is the Dept of Justice downplaying reports and proof linking both Obama and Clinton to the Uranium 1 scandal
(courtesy zerohedge)

Why Is The DOJ Downplaying Reports Of Proof Linking Obama And Clinton To Russian Corruption

Following the release of the identity of the FBI informantJustice Department officials in recent days said that informant William Campbell’s prior work won’t shed much light on the U.S. government’s controversial decision in 2010 to approve Russia’s purchase of the Uranium One mining company and its substantial U.S. assets.

However, The Hill’s John Solomon has reviewed 1000s of new memos from an FBI informant that clearly show illegal activity surrounding a Russian plot to corner the American uranium market, ranging from corruption inside a U.S. nuclear transport company to Obama administration approvals that let Moscow buy and sell more atomic fuels.

FBI informant Campbell, acting as a consultant trying to help Rosatom overcome political opposition to the Uranium One deal, gathered evidence for six years, and, according to the more than 5,000 pages of documents from the counterintelligence investigation, there are a number of evidenciary links betweeen corrupt Russians, President Obama, and Hillary Clinton…

The Hill’s John Solomon details that Campbell documented for his FBI handlers the first illegal activity by Russians nuclear industry officials in fall 2009, nearly a entire year before the Russian state-owned Rosatom nuclear firm won Obama administration approval for the Uranium One deal.

“The attached article is of interest as I believe it highlights the ongoing resolve in Russia to gradually and systematically acquire and control global energy resources,” Rod Fisk, an American contractor colleage working for the Russians, wrote in a June 24, 2010 email to Campbell.

Part of the goal was to make Americans more reliant on Russian uranium before a program that converted former Soviet warheads into U.S. nuclear fuel expired in 2013, according to documents and interviews. Russia’s ambitions including building a uranium enrichment facility on U.S. soil, the documents show.

The FBI task force supervising Campbell since 2008 watched as the Obama administration made more than a half dozen decisions favorable to the Russian’s plan, which ranged from approving the sale of Uranium One to removing Rosatom from export restrictions and making it easier for Moscow to win billions in new commercial uranium sales contracts.  The favorable decisions occurred during a time when President Obama and Secretary of State Hillary Clinton were pursuing a public “reset” to improve Moscow relations, a plan that fell apart after Russia invaded Ukraine.

Multiple congressional committees recently got permission from the Justice Department to interview Campbell after The Hill reported last month the existence of his informant work. Lawmakers want to know what the FBI did with the evidence Campbell gathered in real time and whether it warned President Obama and top leaders before they made the Russian-favorable decisions, like the Uranium One deal.

Since Campbell’s identity emerged in recent days, there have been several statements by Justice officials, both on the record and anonymously, casting doubt on the timing and value of his work, and specifically his knowledge about Uranium One. However, as The Hill’s John Solomon crucially details, the more than 5,000 pages of documents reviewed by The Hill directly conflict with some of the Justice officials’ accounts.

For instance, both Attorney General Jeff Sessions in testimony last week and Deputy Attorney General Rod Rosenstein in a letter to the Senate last month tried to suggest there was no connection between Uranium One and the nuclear bribery case.

 

Their argument was that the criminal charges weren’t filed until 2014, while the Committee of Foreign Investment in the United States (CFIUS) approval of the Uranium One sale occurred in October 2010.

 

“The way I understand that matter is that the case in which Mr. Mikerin was convicted was not connected to the CFIUS problem that occurred two to three years before,” Sessions testified to the House Judiciary Committee last week, echoing Rosenstein’s letter from a few weeks earlier.

 

But investigative records show FBI counterintelligence recorded the first illicit payments in the bribery/kickback scheme in November 2009, a year before the CFIUS approval.

 

There is zero doubt we had evidence of criminal activity before the CFIUS approval, and that Justice knew about it through NSD [the natural security division],” said a source with direct knowledge of the investigation.

This clear conflict has angered a number of Republican congress members (not so many Democrats)…

“Attorney General Sessions seemed to say that the bribery, racketeering and money laundering offenses involving Tenex’s Vadim Mikerin occurred after the approval of the Uranium One deal by the Obama administration. But we know that the FBI’s confidential informant was actively compiling incriminating evidence as far back as 2009,” Rep. Ron DeSantis, (R-Fla.) told The Hill.

 

“It is hard to fathom how such a transaction could have been approved without the existence of the underlying corruption being disclosed. I hope AG Sessions gets briefed about the CI and gives the Uranium One case the scrutiny it deserves,” added DeSantis, whose House Oversight and Government Reform subcommittees is one of the investigating panels.

 

Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) sent a similar rebuke last week to Rosenstein, saying the deputy attorney general’s first response to the committee “largely missed the point” of the congressional investigations.

 

“The essential question is whether the Obama Justice Department provided notice of the criminal activity of certain officials before the CFIUS approval of the Uranium One deal and other government decisions that enabled the Russians to trade nuclear materials in the U.S,” Grassley scolded.

The Hill documents numerous attempts at misinformation and ‘fake news’ attempting to downplay or obfuscate documented evidence from Campbell of the timing of events.

Most critically, The Hill points out that Campbell’s debriefing files also show he regularly mentioned to FBI agents in 2010 a Washington entity with close ties to Bill and Hillary Clinton that was being paid millions to help expand Tenex’s business in the United States.

The entity began increasing its financial support to a Clinton charitable project after it was hired by the Russians, according to the documents.

 

Campbell engaged in conversations with his Russian colleagues about the efforts of the Washington entity and others to gain influence with the Clintons and the Obama administration.

 

He also listened as visiting Russians used racially tinged insults to boast about how easy they found it to win uranium business under Obama, according to a source familiar with Campbell’s planned testimony to Congress.

And…

In recent days, news media including The Washington Post and Fox News anchor Shepard Smith have inaccurately reportedanother element of the story: that Uranium One never exported its American uranium because the Obama administration did not allow it.

 

However, the Nuclear Regulatory Commission authorized Uranium One to export through a third party tons of uranium to Canada for enrichment processing, and some of that product ended up in Europe, NRC documents state.

 

A Uranium One executive acknowledged to The Hill that 25 percent of the uranium it shipped to Canada under the third-party export license ended up with either European or Asian customers through what it known in the nuclear business as “book transfers.”

It is clear by their desperation, that someone is trying to hide something as in leaked stories late last week, Justice officials anonymously questioned Campbell’s credibility pointing to episodes of drinking and reckless driving.

However, The Hill’s sources familiar with the full body of Campbell’s work said they expect he can provide significant new information to Congress.

“Will he be able to prove that we knew Russia was engaged in criminal conduct before Uranium One was approved, you bet,” the source said.

 

“Were the Russians using political influence and pulling political levers to try to win stuff from the U.S. government, you bet.

 

Was he perfect, no one in this line of work is. But we were focused on much larger issues than just that.”

All of which still leaves us asking – why is the Justice Department downplaying this evidence and not moving forward with the probe? Two immediate scenarioes are possible – first, the rot is so deep and pervasive that the establishmentarians left are forcing the hands of the few; or second, the Deep State has Sessions by the balls.

Read more here…

end

Journalist Sara Carter provides proof of Obama/Clinton involvement in the Uranium 1 scandal and how the DOJ is trying to credit Campbell, the FBI informant

a must read..

 

(courtesy Zero Point Now)

 

Journalist Sara Carter Destroys DOJ Attempt To Discredit FBI Informant And Stonewall Uranium One Investigation

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Content originally published at iBankCoin.com

Several weeks ago a bombshell report by John Solomon and Alison Spann of The Hill revealed that an undercover FBI informant embedded deep within the Russian nuclear industry had uncovered evidence as early as the fall of 2009 of a massive plot by Russia to corner the American Uranium market. Evidence of the scheme was in the hands of the FBI an entire year before the Obama administration approved the sale of Uranium One to Russia’s state-owned Energy giant, Rosatom – which has since been exporting ‘yellowcake’ uranium to Canada, Europe and elsewhere via a Kentucky trucking firm.

Based on what the FBI knew – including evidence which purportedly includes a video of Russians preparing briefcases of bribe money – the deal never should have gone through. Moreover, both Robert Mueller and current deputy Attorney General Rod Rosenstein were directly involved – and current Attorney General Jeff Sessions and other Justice Department officials appear to be covering for them.

Mueller’s FBI knew

Key among the troubling revelations from The Hill is the undercover informant’s claim that Obama’s FBI, headed at the time by director Robert Mueller, knew that Russian nuclear officials had routed millions of dollars to the U.S. designed to benefit former President Bill Clinton’s charitable foundation during the time Secretary of State Hillary Clinton served on a government body that provided a favorable decision to Moscow” – a deal which would eventually grant the Kremlin control over 20 percent of America’s uranium supply, as detailed by author Peter Schweitzer’s book Clinton Cash and the New York Times in 2015.

The FBI mole also gathered extensive evidence that Moscow had compromised an American uranium trucking firm, Transport Logistics International (TLI) in violation of the Foreign Corrupt Practices Act – engaging in a scheme of bribes and kickbacks involving the company which would have transported the U.S. uranium sold to Russia in the ’20 percent’ deal.

The Russians were compromising American contractors in the nuclear industry with kickbacks and extortion threats, all of which raised legitimate national security concerns. And none of that evidence got aired before the Obama administration made those decisions,” a person who worked on the case told The Hill, speaking on condition of anonymity for fear of retribution by U.S. or Russian officials.” –The Hill

In short, the FBI had ample evidence of the Russian plot before the Obama administration approved the Uranium One deal.

Iron-Clad Gag Order Lifted

The FBI informant – outed five days ago as energy consultant William Campbell -was “threatened” by Obama admin AG Loretta Lynch to keep quiet, according to his attorney – former Reagan Justice Dept. official and former Chief Counsel to the Senate Intelligence Committee Victoria Toensing. After Senate Judiciary Committee Chairman Chuck Grassley (R-VA) demanded Campbell be allowed to testify in front of Congress, the gag order was lifted.

Sessions And The DOJ are running Interference

In a move which can only be interpreted as an effort to protect the FBI, the Obama administration and the Clintons, AG Jeff Sessions and several Justice Dept. officials have been casting doubt on the value of Campbell’s evidence, along with the need for a Special Counsel to investigate.

Via John Solomon of The Hill

“both Attorney General Jeff Sessions in testimony last week and Deputy Attorney General Rod Rosenstein in a letter to the Senate last month tried to suggest there was no connection between Uranium One and the nuclear bribery case.Their argument was that the criminal charges weren’t filed until 2014, while the Committee of Foreign Investment in the United States (CFIUS) approval of the Uranium One sale occurred in October 2010.”

THIS IS A LIE – which has rubbed several Congressional republicans the wrong way:

“Attorney General Sessions seemed to say that the bribery, racketeering and money laundering offenses involving Tenex’s Vadim Mikerin occurred after the approval of the Uranium One deal by the Obama administration. But we know that the FBI’s confidential informant was actively compiling incriminating evidence as far back as 2009,” Rep. Ron DeSantis, (R-Fla.) told The Hill.

“It is hard to fathom how such a transaction could have been approved without the existence of the underlying corruption being disclosed. I hope AG Sessions gets briefed about the CI and gives the Uranium One case the scrutiny it deserves,” added DeSantis, whose House Oversight and Government Reform subcommittees is one of the investigating panels.

Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) sent a similar rebuke last week to Rosenstein, saying the deputy attorney general’s first response to the committee “largely missed the point” of the congressional investigations.

“The essential question is whether the Obama Justice Department provided notice of the criminal activity of certain officials before the CFIUS approval of the Uranium One deal and other government decisions that enabled the Russians to trade nuclear materials in the U.S,” Grassley scolded.”

Meanwhile – John Solomon and journalist Sara Carter have copies of the FBI informant’s evidence, and Carter just annihilated the DOJ in an explosive report laying out the players, the timeline, and the evidence at hand.

By the time the sale of Uranium One was approved by the Obama Administration, the FBI’s investigators had already gathered substantial evidence and the bureau was also aware of Russia’s intentions to enter the U.S. energy market and its desire to purchase a stake in American uranium,” Carter writes.

Highlights: 

  • FBI mole William Campbell was a highly valued FBI asset – paid $51,000 by FBI officials at a celebration dinner in Chrystal City, VA, where Campbell’s attorney says they thanked him for his service.
  • Campbell was required by the Russians, under threat, to launder large sums of money – which allowed the FBI to uncover a massive Russian “nuclear money laundering apparatus”
  • Campbell collected over 5,000 documents and briefs over a six year period
  • Campbell uncovered a Russian plot to penetrate the Obama administration and gain approval for the Uranium One sale, including a 2010 email which describes “Russia’s intent on expanding its Uranium expansion in the United States.” 

“The attached article is of interest as I believe it highlights the ongoing resolve in Russia to gradually and systematically acquire and control global energy resources,” said Fisk, who titled the subject line of the email ‘Russian uranium.’  The article attached to Fisk’s email, was a Reuters report in June, 2010, titled ‘Despite price falls, ARMZ confident of Uranium One shareholder approval. –Sara Carter

This is not just about bribery and kickbacks but about a U.S. company that was transporting yellow-cake for the Russians with our approval, an unnamed U.S. Intelligence official told Carter, adding “This should raise serious questions. At the time everyone was concerned about Russia’s ties to Iran, we still are. And of course, Russia’s intentions and reach into the U.S. energy market.”

And after all of that, Attorney General Jeff Sessions doesn’t think there is “enough basis” to appoint a second Special Counsel to investigate the Uranium One deal.

Moreover, Carter reports that “several Justice Department officials, who formerly commended Campbell, have spoken on background to other news agencies disparaging Campbell and his work at that time – despite the FBI’s glowing review and $51,000 check.

Carter writes:

“In a story by Michael Isikoff, published on Yahoo, a DOJ official involved in the case stated that Campbell was a “disaster” as a potential witness and that “there was no question that Campbell’s credibility was such that the prosecutors had to restructure the case,” the source said.“He got cut out of the case entirely.” It is important to note that Campbell was going through 35 intense radiation treatments after being diagnosed with cancer during his time with the FBI, according to hospital records.

After years of effective reporting and working in harms way, the cancer diagnosis and treatment had a profound effect on Campbell’s ability to interact with in the final stages prior to the indictments,  said Toensing.

She said her client is ready to present Congress with all he knows and called the stories a “smear job.”

This is what the left do-provide false talking points to compromised reporters who are willing to regurgitate whatever they are fed,” said Toensing.”

Keep in mind – all it took for Rod Rosenstein to establish Mueller’s Special Counsel on Russian influence was a dubious Russian hacking report by a discredited DNC-linked security firm and a hearsay memo from former FBI director James Comey, stating that President Trump asked him to go easy on former National Security Advisor Mike Flynn.

If the DOJ continues to stonewall the Uranium One investigation and Campbell’s testimony is given the runaround, one has to wonder if any of the 5,000 documents – or even the Russian bribe video – will mysteriously appear in the public domain for the world to see.’

end

 

Uber is bleeding red ink badly.  It’s 2nd quarter cash burn was over 600 million dollars or 7 million a day. Mutual funds are announcing that they are going to slash their valuations by 15%.  Then why did Uber purchase 1 billion dollars worth of driverless Volvos?

(courtesy zerohedge)

Cash-Hemorrhaging Uber Announces Plans To Drop $1 Billion On Driverless Volvos

Earlier this summer we noted Uber’s staggering 2Q cash burn of $600 million which equates to roughly $7 million in net cash outflows every single day.  The staggering, and consistently growing, cash burn figures resulted in several mutual funds announcing they would slash their valuations of the struggling rideshare company by up to 15%. 

Of course, if cash burn was a concern before for Uber investors before then they should probably take note of the company’s newly announced decision to drop roughly $1 billion on driverless Volvos.  According to Bloomberg, Uber has just penned a deal to pick up 24,000 brand new Volvo XC90’s in their push to flood the U.S. market with self-driving taxis.

Uber Technologies Inc. agreed to buy 24,000 sport utility vehicles from Sweden’s Volvo Cars to form a fleet of driverless autos, Bloomberg News reports.

 

The XC90s, priced from $46,900 at U.S. dealers, will be delivered between 2019 and 2021 in the first commercial purchase by a ride-hailing provider, Volvo said in a statement Monday. San Francisco-based Uber will add its own sensors and software to permit pilot-less driving.

 

“This new agreement puts us on a path toward mass-produced, self-driving vehicles at scale,” Jeff Miller, Uber’s head of auto alliances, told Bloomberg News. “The more people working on the problem, we’ll get there faster and with better, safer, more reliable systems.”

 

“The automotive industry is being disrupted by technology and Volvo Cars chooses to be an active part of that disruption,” Chief Executive Officer Hakan Samuelsson said. “It’s a new market that’s emerging and we’re the first to be delivering into that segment.”

Volvo

Of course, as we’ve pointed out multiple times before, to the extent the technology works consistently, avoiding the nasty consequences of death and mayhem in the event of failure, autonomous vehicles are worth big money to Uber and consumers…though not so much for the automotive OEMs (see “Ford Announces Plans To Self-Destruct Starting In 2021“).  As we’ve pointed out, the cost of paying drivers is a substantial portion of the roughly $1.00 per mile charge paid by Uber riders.  To the extent that cost can be removed from the equation then fares charged by companies like Uber will decline materially.

Unfortunately, for the auto OEMs the story is the exact opposite.  In theory, truly autonomous cars could result in substantial increases in passenger car utilization rates and, therefore, declines in annual car sales.  But apparently, Volvo CEO Hakan Samuelsson isn’t worried (yes, we can sense the pure optimism in the quote below):

“That could be seen as a threat,” says Volvo Cars CEO Hakan Samuelsson. “We see it as an opportunity.”

But still, even if the technology works, the question remains how quickly consumers will adopt it, if at all. Certainly there certainly has been no shortage of videos hitting You tube lately of driverless cars plowing through red lights and getting into accidents…which seems less than ideal.

end

Existing home sales rise on a month to month basis but still drop year over year.  The rise might be due to the tentative removal of tax incentives to purchase a home

(courtesy zerohedge)

Existing Home Sales Drop Year-Over-Year For 2nd Straight Month – First Time Since 2014

Following September’s positive housing data rebound, October data is starting well with existing home sales surging 2.0% MoM (better than expected 0.2%) to 5.48mm SAAR, as US existing home sales inventory tumbled 10.4% YoY, to 1.8 months, the lowest since 1999.

Sales of previously owned U.S. homes rose to a four-month high, indicating demand was firming at the start of the quarter as the impact from hurricanes faded, according to a National Association of Realtors report released Tuesday.

 

However, this is the second straight YoY sales decline, first back-to-back months since 2014…

The median sales price increased 5.5% YoY to $247,000.

Bloomberg reports that Houston and several areas of Florida saw gains when compared with a year earlier, while Miami is still showing some softness, according to NAR.

As in the past, economic activity including in the housing industry typically bounces back after major storms as rebuilding and repair work gets under way.

Another possible headwind comes from tax legislation being advanced in Congress, which the Realtors association strenuously opposes.

The group said last week that the plans debated by lawmakers would “overwhelmingly remove the tax incentive to purchase and own a home in America,” and economists surveyed by Bloomberg said the House bill would reduce demand from homebuyers.

“The momentum appears to be good,” Lawrence Yun, NAR’s chief economist, said at a press briefing accompanying the report. The hurricane impact was “more modest” than anticipated in October and activity is “quickly bouncing back.”

The tax plan could be a “major wild-card disrupter to the housing recovery,” he said. Even so, he sees another “respectable year in 2018,” provided any tax changes don’t set back demand.

end

The USA strikes Somali and kills more than 100 ISIS members

(courtesy zerohedge)

US Airstrike In Somalia Kills More Than 100 al-Shabab Militants

More than 100 al-Shabaab militants were killed Tuesday in the latest US airstrike in Somalia the Pentagon announced, the latest in a series of strikes against the al Qaeda affiliated group and ISIS fighters in the war-torn country meant to support the local government. The strike occurred 125 miles northwest of the capital of Mogadishu, and was the 29th such strike since the start of 2017, and 7th since November 9.

The Pentagon released the following statement commemorating the latest airstrike:

U.S. Conducts Airstrike in Support of the Federal Government of Somalia

 

In coordination with the Federal Government of Somalia, U.S. forces conducted an airstrike in Somalia against an al-Shabaab camp on Tuesday, Nov. 21 at approximately 10:30 a.m. local Somalia time, killing more than 100 militants. The operation occurred 125 miles northwest of the capital, Mogadishu.

 

Al-Shabaab has pledged allegiance to al-Qaeda and is dedicated to providing safe haven for terrorist attacks throughout the world. Al-Shabaab has publicly committed to planning and conducting attacks against the U.S. and our partners in the region.

 

U.S. forces will continue to use all authorized and appropriate measures to protect Americans and to disable terrorist threats. This includes partnering with AMISOM and Somali National Security Forces (SNSF); targeting terrorists, their training camps and safe havens throughout Somalia, the region and around the world.

 

Our political and security goals in Somalia are the same: a reconstituted Somali state at peace internally and able to address all threats within its territory.

As we reported yesterday, the Defense Department has deployed more than 500 personnel in Somalia including military, civilians and contractors, more than double the 200 personnel that had been reported to be in Somalia in March 2017, according to US Africa Command which oversees US forces on the continent. The personnel are part of the effort to support African forces fighting al-Shabaab as well as ISIS forces there. While estimates have fluctuated over time, the US now estimates there are between 3,000 and 6,000 al-Shabaab fighters and less than 250 ISIS operatives in Somalia.

US troops have primarily operated in Somalia to provide training and assistance for local forces, according to CNN, but US special operations forces also continue to rotate in and out of Somalia, conducting counter terrorism operations according to defense officials.

Early November saw a decided uptick in US airstrikes in Somalia. Africa Command and the Pentagon insist the series of airstrikes are simply due to the ability to identify targets and not as a direct result of a number of recent massive deadly suicide attacks in the Somali capital of Mogadishu, including a double truck bomb attack in October that killed hundreds.

“We’ve always stressed the importance of putting pressure on the network,” said Samantha Reho, an Africa Command spokesperson. “The opportunities presented themselves with the right conditions and are purely coincidence.”

The increase in strikes in Somalia as well as Libya and Yemen, is driven by the intelligence that is gathered, according to officials: “I think as we constantly assess the battle space, when targets present themselves that are actionable and within the law of armed conflict, we’re going to strike those targets,” Lt. Gen. Kenneth McKenzie, director of the Joint Staff told reporters.

There have been 29 strikes acknowledged by the Pentagon so far this year. Seven of those strikes took place between November 9 and 14.

  • November 9, killing several militants, 100 miles west of the capital of Mogadishu.
  • November 10 in the Lower Shabelle Region of Somalia, about 20 miles north of Mogadishu, killing several militants.
  • November 11 near Gaduud, about 250 miles southwest of the capital, Mogadishu. Prior to the strike, US forces observed the al-Shabaab combatant participating in attacks on a U.S. and Somali convoy. US forces subsequently conducted the strike under collective self-defense authorities.
  • November 12 there were two separate airstrikes against al-Shabaab and ISIS, killing several terrorists. The first was against al Shabaab in the Lower Shabelle region, the second against ISIS in Puntland.
  • November 13, there was another airstrike 250 miles southwest of Mogadishu when al Shabaab fighters posed a threat to a Somali led counterterrorism operation.
  • November 14 strike against al Shabaab about 60 miles northwest of Mogadishu.

The strikes have been “made possible” by President Donald Trump’s decision in April to grant new authorities to the commander of Africa Command. The new authorities gave the Africa Command commander the ability to carry out “precision airstrikes” in support of African Union and Somali troops fighting terrorists in Somalia. Previously, strikes could only be conducted in self-defense of US forces.

Separately, the US military also carried out two drone strikes in Libya on Friday and Sunday, targeting ISIS fighters in near Fuqaha, Libya, multiple US officials told CNN

end

 

both Trump and Putin are acting like true statesmen:

 

(courtesy zerohedge)

Trump And Putin Speak “For More Than An Hour” By Phone; Discuss Syria, North Korea, Ukraine

As previewed this morning, when we discussed the surprise meeting between Syria’s al-Assad and Vladimir Putin in which the Syrian president said “Today, on behalf of the Syrian people, I extend my gratitude to you for what you did, we will never forget it”, the Russian president was set to hold a phone call with Donald Trump ahead of further meetings in Sochi on Wednesday with the leaders of Iran and Turkey. Moments ago both the Kremlin and White House released read outs of the talking points on the call that took place around noon.

According to ABC, president Donald Trump spoke for more than an hour Tuesday by phone with Russian President Vladimir Putin. Syria, Iran, North Korea and Ukraine were on the agenda, the White House said.

The Kremlin echoed the White House, and said that the two leaders discussed “a number of topics”, including the Syrian crisis, the North Korean nuclear problem and the situation in Afghanistan as well as the Ukrainian crisis. Putin briefed Trump in the phone call about his talks with the Syrian leader and plans for a political settlement in Syria.

Putin stressed that there were no alternatives for full implementation of the Minsk agreements on peaceful settlement of the armed conflict in eastern Ukraine. .

“Considering the crisis situation in southeastern Ukraine, the Russian president pointed out the absence of a real alternative for the unconditional implementation of the Minsk accords signed on February 12, 2015,” the statement said.

The Kremlin also said Putin also called for coordination of anti-terror efforts with the U.S. Afghanistan was also discussed, the Kremlin said.

Trump and Putin spoke informally several times last week when they attended a summit in Vietnam, where they agreed on a number of principles for the future of war-torn Syria. The following close exchange also took place:

I WILL SEE YOU ON WEDNESDAY NIGHT

AS THURSDAY IS THANKSGIVING, i WILL NOT PROVIDE A COMMENTARY

BUT i WILL RESUME FRIDAY NIGHT.

HARVEY

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