Jan 5/Gold rises by $1.40 to $1320.90//silver up 4 cents to $17.23/Huge gold comex gain of 30,141 contracts coupled with a huge 17,213 gain in gold EFP/ In silver a comex gain of 2536 contracts coupled with a huge 5894 EFP transfer/

 

 

GOLD: $1320.90 up $1.40

Silver: $17.23 UP 4 cents

Closing access prices:

Gold $1319.75

silver: $17.23

For comex gold:

JANUARY/

NUMBER OF NOTICES FILED TODAY FOR JANUARY CONTRACT: 4 NOTICE(S) FOR 400 OZ.

TOTAL NOTICES SO FAR: 242 FOR 24200 OZ (0.7527 TONNES),

For silver:

jANUARY

2 NOTICE(S) FILED TODAY FOR

10,000 OZ/

Total number of notices filed so far this month: 507 for 2,535,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $15,821/OFFER $15,943 UP $698 (morning)

 Bitcoin: BID   16,547/OFFER  $16,667 up  $1429(CLOSING)

end

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

In silver, the total open interest SURPRISINGLY ROSE BY A CONSIDERABLE  2536 contracts from 1921728 RISING TO 191,728 DESPITE YESTERDAY’S TINY 1 CENT FALL IN SILVER PRICING.  WE HAD ZERO  COMEX LIQUIDATION BUT WITHOUT A DOUBT WE WITNESSED ANOTHER MAJOR BANK SHORT- COVERING OPERATION. NOT ONLY THAT , WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER HUGE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE: A HUGE 5894 EFP’S FOR MARCH (AND ZERO FOR OTHER MONTHS) AND THUS TOTAL ISSUANCE OF 5894 CONTRACTS. HOWEVER THE MOVEMENT ACROSS TO LONDON IS NOT AS SEVERE AS IN GOLD AS THERE SEEMS TO BE A MAJOR PLAYER TAKING ON THE BANKS AT THE COMEX. STILL, WITH THE TRANSFER OF 5894 CONTRACTS, WHAT THE CME IS STATING IS THAT THERE IS NO SILVER (OR GOLD) TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. YESTERDAY WITNESSED  EFP’S FOR SILVER ISSUED. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24 HRS IN THE ISSUING OF EFP’S. I BELIEVE THAT WE MUST HAVE HAD SOME MAJOR BANKER SHORT COVERING AGAIN TODAY.

ACCUMULATION FOR EFP’S/SILVER/ STARTING FROM FIRST DAY NOTICE/FOR MONTH OF JANUARY:

16,210 CONTRACTS (FOR 5 TRADING DAYS TOTAL 16,210 CONTRACTS OR 81.05 MILLION OZ: AVERAGE PER DAY: 3242 CONTRACTS OR 16.210 MILLION OZ/DAY)

RESULT: A GOOD SIZED GAIN IN OI COMEX DESPITE THE TINY 1 CENT RISE IN SILVER PRICE WHICH USUALLY INDICATES HUGE BANKER SHORT-COVERING. WE ALSO HAD A HUGE SIZED SIZED EFP ISSUANCE OF 5894 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS.  FROM THE CME DATA 5894 EFP’S WERE ISSUED FOR TODAY (FOR MARCH EFP’S AND NONE FOR ALL OTHER MONTHS) FOR A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS. WE REALLY GAINED 8430 OI CONTRACTS i.e. 5894 open interest contracts headed for London (EFP’s) TOGETHER WITH A INCREASE OF 2536 OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE TINY FALL IN PRICE OF SILVER BY 1 CENT AND A CLOSING PRICE OF $17.19 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A GOOD AMOUNT OF SILVER STANDING AT THE COMEX.

In ounces AT THE COMEX, the OI is still represented by just UNDER 1 BILLION oz i.e. 0.9710 BILLION TO BE EXACT or 139% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT JANUARY MONTH/ THEY FILED: 2 NOTICE(S) FOR 10,000 OZ OF SILVER

In gold, the open interest ROSE BY AN ATMOSPHERIC SIZED 30,141 CONTRACTS UP TO 542,313 WITH THE SMALL RISE IN PRICE OF GOLD WITH YESTERDAY’S TRADING ($2.50). IN ANOTHER HUGE DEVELOPMENT, WE RECEIVED THE TOTAL NUMBER OF GOLD EFP’S ISSUED YESTERDAY FOR TODAY AND IT TOTALED A STRONG SIZED  17,213 CONTRACTS OF WHICH THE MONTH OF FEBRUARY SAW 17,213 CONTRACTS AND APRIL SAW THE ISSUANCE OF 0 CONTRACTS.  The new OI for the gold complex rests at 542,313. DEMAND FOR GOLD INTENSIFIES GREATLY AS WE CONTINUE TO WITNESS A HUGE NUMBER OF EFP TRANSFERS TOGETHER WITH THE MASSIVE INCREASE IN GOLD COMEX OI  TOGETHER WITH  THE TOTAL AMOUNT OF GOLD OUNCES STANDING FOR JANUARY. EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER (BIG RISE IN BOTH GOFO AND SIFO) AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES. IN ESSENCE WE HAVE ANOTHER HUMONGOUS GAIN OF 47,354 OI CONTRACTS: 30,141 OI CONTRACTS INCREASED AT THE COMEX AND A GOOD SIZED 17,213 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.

YESTERDAY, WE HAD 8798 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JANUARY STARTING WITH FIRST DAY NOTICE: 51,490 CONTRACTS OR 5.149 MILLION OZ OR 160.715 TONNES (5 TRADING DAYS AND THUS AVERAGING: 10,298 EFP CONTRACTS PER TRADING DAY OR 1.0298 OZ/DAY)

Result: A HUMONGOUS SIZED INCREASE IN OI WITH THE SMALL SIZED RISE IN PRICE IN GOLD TRADING ON YESTERDAY ($2.50). WE HAD ANOTHER HUGE SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 17,213. THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX AND YET WE ALSO OBSERVED A HUGE DELIVERY MONTH FOR THE MONTH OF DECEMBER. I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS HARDLY ANY GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES. IF YOU TAKE INTO ACCOUNT THE 17,213 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 47,354 contracts:

17,213 CONTRACTS MOVE TO LONDON AND  30,141 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the gain in total oi equates to 147.29 TONNES)

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

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD: with gold up for 11 consecutive days, we still have no changes in gold inventory

Today, NO CHANGES IN GOLD INVENTORY AT THE GLD/

Inventory rests tonight: 836.32 tonnes.

SLV/DESPITE NO CHANGE IN SILVER PRICING WE HAD A HUGE WITHDRAWAL TODAY.

HUGE CHANGES IN SILVER INVENTORY AT THE SLV/ A WITHDRAWAL OF 2.026 MILLION OZ OZ

INVENTORY RESTS AT 318.423 MILLION OZ/

end

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

1. Today, we had the open interest in silver ROSE BY A CONSIDERABLE 2536 contracts from 191,728 UP TO 194,264 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE THE TINY FALL IN PRICE OF SILVER TO THE TUNE OF 1 CENT  YESTERDAY.  WE HAD WITHOUT A DOUBT ANOTHER MAJOR SHORT COVERING FROM OUR BANKERS AS THEY HAVE CAPITULATED. NOT ONLY THAT BUT OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER 5894 PRIVATE EFP’S FOR MARCH (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM).  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. WE HAD NO COMEX SILVER COMEX LIQUIDATION. BUT, IF WE TAKE THE GOOD OI GAIN AT THE COMEX OF 2536 CONTRACTS TO THE 5894 OI TRANSFERRED TO LONDON THROUGH EFP’S WE OBTAIN A GAIN OF 8430 OPEN INTEREST CONTRACTS DESPITE THE MAJOR BANKER SHORT COVERING. WE STILL HAVE A GOOD AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN JANUARY (SEE BELOW). THE NET GAIN TODAY IN OZ: 42.150 MILLION OZ!!!

RESULT: A GOOD SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE TINY SIZED FALL OF 1 CENT IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING). BUT WE ALSO HAD ANOTHER 5894 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE GOOD  SIZED AMOUNT OF SILVER OUNCES STANDING FOR JANUARY, DEMAND FOR PHYSICAL SILVER INTENSIFIES AS WE WITNESS MAJOR BANK SHORT COVERING ACCOMPANIED BY INCREASES IN GOFO AND SIFO RATES INDICATING SCARCITY.

(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

3a)THAILAND/SOUTH KOREA/NORTH KOREA

i)North Korea

b) REPORT ON JAPAN

3 c CHINA

4. EUROPEAN AFFAIRS

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

6 .GLOBAL ISSUES

7. OIL ISSUES

8. EMERGING MARKET

9. PHYSICAL MARKETS

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

Let us head over to the comex:

The total gold comex open interest ROSE BY ATMOSPHERIC 30,141 CONTRACTS UP to an OI level of 542,313 WITH THE SMALL SIZED RISE IN THE PRICE OF GOLD ($2.50 GAIN WITH RESPECT TO YESTERDAY’S TRADING).  OBVIOUSLY WE HAD ZERO COMEX GOLD LIQUIDATION WITH ANOTHER STRONG GAIN IN TOTAL OPEN INTEREST AS WE WITNESSED ANOTHER HUMONGOUS COMEX TRANSFER THROUGH THE EFP ROUTE. THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS. THE CME REPORTS THAT 17,213 EFP’S WERE ISSUED FOR FEBRUARY AND 0 EFP’s  FOR APRIL:  TOTAL  8430 CONTRACTS. THE OBLIGATION STILL RESTS WITH THE BANKERS ON THESE TRANSFERS.

ON A NET BASIS IN OPEN INTEREST WE GAINED TODAY: 47,354 OI CONTRACTS IN THAT 17,213 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED 30,141 COMEX CONTRACTS. NET GAIN: 47,354 contracts OR 4,735,400 OZ OR 147.27 TONNES

Result: A STRONG SIZED INCREASE IN COMEX OPEN INTEREST WITH THE SMALL RISE IN THE PRICE OF YESTERDAY’S GOLD TRADING (2.50.) WE HAD NO GOLD LIQUIDATION ANYWHERE. TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES: 47,354 OI CONTRACTS…

We have now entered the active contract month of JANUARY. The open interest for the front month of JANUARY saw it’s open interest FALL by 14 contracts DOWN to 183.  We had 16 notices served on Friday so we GAINED 2 contracts or 200 additional oz of gold will  stand in this non active month AND AGAIN WE WITNESS QUEUE JUMPING .

FEBRUARY saw a GAIN of 7980 contacts DOWN to 370,433.  March saw a gain of 10 contracts up to 67.  April saw a GAIN of 18,826 contracts UP to 476,468.

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

PRELIMINARY VOLUME TODAY ESTIMATED; 329,333

FINAL NUMBERS CONFIRMED FOR YESTERDAY: 412,858

comex gold volumes are RISING AGAIN

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
And now for the wild silver comex results.

Total silver OI ROSE BY A CONSIDERABLE 2536  CONTRACTS FROM 191,727 UP TO 194,264 DESPITE YESTERDAY’S TINY 1 CENT FALL IN PRICE WHICH SEEMS TO INDICATE WE HAD ANOTHER MAJOR ROUND OF BANKER SHORT-COVERING.  NOT ONLY THAT, WE HAD ANOTHER HUMONGOUS SIZED 5894 EMERGENCY EFP’S FOR MARCH ISSUED BY OUR BANKERS (ZERO FOR ALL OTHER MONTHS) TO COMEX LONGS WHO RECEIVED A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON: THE TOTAL EFP’S ISSUED: 5894. IT SURE LOOKS LIKE THE SILVER BOYS HAVE STARTED TO MIGRATE TO LONDON FROM THE START OF DELIVERY MONTH AND CONTINUING RIGHT THROUGH UNTIL FIRST DAY NOTICE JUST LIKE WE ARE WITNESSING TODAY. USUALLY WE NOTED THAT CONTRACTION IN OI OCCURRED ONLY DURING THE LAST WEEK OF AN UPCOMING ACTIVE DELIVERY MONTH. THIS PROCESS HAS JUST BEGUN IN EARNEST IN SILVER STARTING IN SEPTEMBER. HOWEVER, IN GOLD, WE HAVE BEEN WITNESSING THIS FOR THE PAST 2 YEARS. WE HAD ZERO LONG COMEX SILVER LIQUIDATION BUT A RISE IN TOTAL SILVER OI AS IT SEEMS THAT WE ARE WITNESSING SOME MAJOR BANKER SHORT-COVERING. WE ARE ALSO WITNESSING A FAIR AMOUNT OF SILVER OUNCES STANDING FOR COMEX METAL IN THIS NON ACTIVE JANUARY AS WELL AS THAT CONTINUAL MIGRATION OF EFPS OVER TO LONDON. ON A PERCENTAGE BASIS THERE ARE MORE EFP’S ISSUED FOR GOLD THAN SILVER AS IT SEEMS THAT A MAJOR PLAYER WISHES TO TAKE ON THE CROOKED COMEX SHORTS. ON A NET BASIS WE GAINED 8430 OPEN INTEREST CONTRACTS:

2536 CONTRACT GAIN AT THE COMEX COMBINING WITH THE ADDITION OF 2536 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN: 8430 CONTRACTS

We are now in the poor non active delivery month of January and here the OI GAIN by 17 contracts UP to 41.  We had 0 notices served upon yesterday, so we GAINED 17 contracts or an additional 85,000 oz will  stand for delivery

February saw a GAIN OF 2 OI contracts RISING TO 182. The March contract gained 1819 contracts up to 151,389.

We had 2 notice(s) filed for 10,000 oz for the January 2018 contract for silver

INITIAL standings for JANUARY

Jan 5/2018.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
N/A 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
4 notice(s)
400 OZ
No of oz to be served (notices)
179 contracts
(17,900 oz)
Total monthly oz gold served (contracts) so far this month
242 notices
24200 oz
0.7527 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
I CANNOT RETRIEVE COMEX DATA MOVEMENTS

For JANUARY:
Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 4 contract(s) of which 4 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
To calculate the INITIAL total number of gold ounces standing for the JANUARY. contract month, we take the total number of notices filed so far for the month (242) x 100 oz or 24200 oz, to which we add the difference between the open interest for the front month of JAN. (183 contracts) minus the number of notices served upon today (4 x 100 oz per contract) equals 42,100 oz, the number of ounces standing in this active month of JANUARY

Thus the INITIAL standings for gold for the JANUARY contract month:

No of notices served (242 x 100 oz or ounces + {(183)OI for the front month minus the number of notices served upon today (4 x 100 oz which equals 42,100 oz standing in this active delivery month of JANUARY (1.303 tonnes). THERE IS 33.29 TONNES OF REGISTERED GOLD AVAILABLE FOR DELIVERY SO FAR.

WE GAINED TWO CONTRACTS OR AN ADDITIONAL 200 OZ WILL STAND IN THIS NON ACTIVE DELIVERY MONTH OF JANUARY

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

ON FIRST DAY NOTICE FOR JANUARY 2017, THE INITIAL GOLD STANDING: 3.904 TONNES STANDING

BY THE END OF THE MONTH: FINAL: 3.555 TONNES STOOD FOR COMEX DELIVERY AS THE REMAINDER HAD TRANSFERRED OVER TO LONDON FORWARDS.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Total dealer inventory 1,070,309.229 or 33.29 tonnes (dealer gold continues to disappear)
Total gold inventory (dealer and customer) = 9,143,181.135 or 284.39 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 70 NET TONNES HAS LEFT THE COMEX.

end

And now for silver

AND NOW THE DECEMBER DELIVERY MONTH

DECEMBER FINAL standings

Jan 5/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
N/A oz
Deposits to the Dealer Inventory
nil
oz
Deposits to the Customer Inventory
N/A oz
Scotia
No of oz served today (contracts)
2
CONTRACT(S)
(10,000 OZ)
No of oz to be served (notices)
39 contract
(195,000 oz)
Total monthly oz silver served (contracts) 507 contracts

(2,535,000 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

CANNOT RETRIEVE COMEX INVENTORY DATA

The total number of notices filed today for the JANUARY. contract month is represented by 2 contract(s) FOR 10,000 oz. To calculate the number of silver ounces that will stand for delivery in JANUARY., we take the total number of notices filed for the month so far at 507 x 5,000 oz = 2,535,000 oz to which we add the difference between the open interest for the front month of JAN. (41) and the number of notices served upon today (2 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JANUARY contract month: 507(notices served so far)x 5000 oz + OI for front month of JANUARY(41) -number of notices served upon today (2)x 5000 oz equals 2,730,000 oz of silver standing for the JANUARY contract month. This is VERY GOOD for this NONACTIVE delivery month of JANUARY.  WE GAINED 17 CONTRACTS OR AN ADDITIONAL 85,000 OZ WILL  STAND FOR DELIVERY IN THIS NON ACTIVE DELIVERY MONTH OF JANUARY. 

ON FIRST DAY NOTICE FOR THE JANUARY 2017 CONTRACT WE HAD 3,790 MILLION OZ STAND.

THE FINAL STANDING: 3,730 MILLION OZ

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

ESTIMATED VOLUME FOR TODAY: 82,640

CONFIRMED VOLUME FOR FRIDAY: 104,064 CONTRACTS

YESTERDAY’S CONFIRMED VOLUME OF 104,064 CONTRACTS EQUATES TO 520 MILLION OZ OR 74.2% OF ANNUAL GLOBAL PRODUCTION OF SILVER

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: 59.182 million
Total number of dealer and customer silver: 240.232 million oz

The record level of silver open interest is 234,787 contracts set on April 21./2017 with the price at that day at $18.42
The previous record was 224,540 contracts with the price at that time of $20.44

end

NPV for Sprott and Central Fund of Canada

1. Central Fund of Canada: traded at Negative 2.3 percent to NAV usa funds and Negative 2.1% to NAV for Cdn funds!!!!
Percentage of fund in gold 62.8%
Percentage of fund in silver:37.0%
cash .+.2%( Jan 5/2018)

2. Sprott silver fund (PSLV): NAV RISES TO -0.60% (Jan 4/2018)??????????????????????????????
3. Sprott gold fund (PHYS): premium to NAV RISES TO -0.41% to NAV (Jan 4 /2018 )
Note: Sprott silver trust back into NEGATIVE territory at -0.60%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.41%/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

Jan 5/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 836.32 TONNES

Jan 4/2018/no change in gold inventory at the GLD/Inventory rests at 836.32 tonnes

Jan 3/a huge withdrawal of 1.18 tonnes of gold from the GLD/Inventory rests at 836.32 tonnes

Jan 2/2018/no changes in gold inventory at the GLD/inventory rests at 837.50 tonnes

Dec 29/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 837.50 TONNES

Dec 28/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 837.50 TONNES

Dec 27/NO CHANGES IN GOLD INVENTORY AT THE GLD/ INVENTORY RESTS AT 837.50 TONNES

Dec 26/no change in gold inventory at the GLD

Dec 22/ A DEPOSIT OF 1.48 TONNES OF GOLD INTO GLD INVENTORY/INVENTORY RESTS AT 837.50 TONNES

Dec 21′ NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 836.02 TONNES

Dec 20/DESPITE THE GOOD ADVANCE IN PRICE TODAY/THE CROOKS RAIDED THE COOKIE JAR TO THE TUNE OF 1.18 TONNES/INVENTORY RESTS AT 836.02 TONNES

Dec 19/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 837.20 TONNES

Dec 18 SHOCKINGLY AFTER TWO GOOD GOLD TRADING DAYS, THE CROOKS RAID THE COOKIE JAR BY THE SUM OF 7.09 TONNES/INVENTORY RESTS AT 837.20 TONNES

Dec 15/NO CHANGES IN GOLD INVENTORY/RESTS AT 844.29 TONNES.

Dec 14/a good sized gain of 1.48 tonnes of gold into the GLD/inventory rests at 844.29 tones

Dec 13/no changes in gold inventory at the GLD/inventory rests at 842.81 tonnes

Dec 12/SURPRISINGLY NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 842.81 TONNES

Dec 11/SURPRISINGLY NO CHANGES IN GOLD INVENTORY AT THE GLD DESPITE THE CONSTANT RAIDS ON GOLD/INVENTORY RESTS AT 842.81 TONNES

Dec 8/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 842.81 TONNES

Dec 7/A BIG WITHDRAWAL OF 2.66 TONNES FROM THE GLD/INVENTORY RESTS AT 842.81 TONNES

Dec 6/No changes in GOLD inventory at the GLD/Inventory rests at 845.47 tonnes

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Jan 5/2018/ Inventory rests tonight at 836.32 tonnes

*IN LAST 305 TRADING DAYS: 104.65 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 240 TRADING DAYS: A NET 52.66 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.
*FROM FEB 1/2017: A NET 211.754TONNES HAVE BEEN ADDED.

end

Now the SLV Inventory

Jan 5/DESPITE NO CHANGE IN SILVER PRICING, WE HAD A HUGE WITHDRAWAL OF 2.026 MILLION OZ/INVENTORY RESTS AT 318.423 MILLION OZ.

Jan 4.2018/a slight withdrawal of 180,000 oz and this would be to pay for fees/inventory rests at 320.449 million oz/

Jan 3/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 320.629 MILLION OZ.

Jan 2/WITH SILVER UP DRAMATICALLY THESE PAST 4 TRADING DAYS, THE FOLLOWING MAKES NO SENSE: WE HAD A WITHDRAWAL OF 2.83 MILLION OZ FROM THE SLV

INVENTORY RESTS AT 320.629 MILLION OZ/

Dec 29/no changes in silver inventory at the SLV/inventory rests at 323.459 million oz/

Dec 28/DESPITE THE RISE IN SILVER AGAIN BY 13 CENTS, WE LOST ANOTHER 1,251,000 OZ OF SILVER FROM THE SILVER.

Dec 27/WITH SILVER UP AGAIN BY 17 CENTS, WE LOST ANOTHER 802,000 OZ OF SILVER INVENTORY/WHAT CROOKS/INVENTORY RESTS AT 324.780 MILLION OZ/

Dec 26/no change in silver inventory at the SLV./Inventory rests at 325.582

Dec 21/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 326.227 MILLION OZ/

Dec 20/INVENTORY REMAINS CONSTANT AT 326.337 MILLION OZ (COMPARE WITH GLD)

Dec 19/SILVER INVENTORY REMAINS CONSTANT AT 326.337 MILLION OZ

Dec 18.2017//SILVER INVENTORY CONTINUES TO REMAIN PAT./INVENTORY REMAINS AT 326.337 MILLION OZ/

INVENTORY RESTS AT 326.337 TONNES

Dec 15/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 326.337 MILLION OZ/

Dec 14/a small withdrawal of 377,000 oz and that usually means to pay for fees./inventory rests at 326.337 million oz/

Dec 13/no change in silver inventory at the SLV/Inventory rests at 326.714 million oz/

Dec 12/WOW!ANOTHER STRANGE ONE: SILVER HAS BEEN DOWN FOR 10 CONSECUTIVE DAYS, YET THE SLV ADDS ANOTHER 1.415 MILLION OZ TO ITS INVENTORY. IN THAT 10 DAY PERIOD, SLV ADDS 9.584 MILLION OZ/

INVENTORY RESTS AT 326.714 MILLION OZ

Dec 11/WOW!! ANOTHER STRANGE ONE: SILVER DESPITE BEING DOWN FOR 9 CONSECUTIVE TRADING DAYS ADDS ANOTHER 944,000 OZ TO ITS INVENTORY. FROM NOV 30 UNTIL TODAY SILVER HAS BEEN DOWN EVERY DAY. HOWEVER THE INVENTORY OF SILVER HAS RISEN 8.169 MILLION OZ.

Dec 8/A HUGE DEPOSIT OF 2.642 MILLION OZ/INVENTORY RESTS AT 324.355 MILLION OZ/

Dec 7/strange!! with the continual whacking of silver, no change in silver inventory at the SLV/Inventory rests at 321.713

Dec 6/no change in silver inventory at the SLV/Inventory remains at 21.713 million oz.

Jan 5/2017:

Inventory 318,423 million oz

end

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

+ 1.79%
12 Month MM GOFO
+ 1.98%
30 day trend

end

At 3:30 pm we receive our COT report which is basically useless due to the huge transfer of contracts through the EFP route

Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
241,428 78,160 60,048 155,104 332,704 456,580 470,912
Change from Prior Reporting Period
38,838 11,518 2,405 -365 27,766 40,878 41,689
Traders
170 86 74 45 52 246 183
 
Small Speculators  
Long Short Open Interest  
44,151 29,819 500,731  
3,383 2,572 44,261  
non reportable positions Change from the previous reporting period
COT Gold Report – Positions as of Tuesday, January 2, 2018

Our large speculators:

those large specs who have been long in gold added 38,838 contracts to their long side

those large specs who have been short in gold added 11,518 contracts to their short side

Our commercials;

those commercials who are long in gold pitched 365 contracts from their long side

those commercials who have been short in gold added a monstrous 27,766 contracts to their short side (and that does not include the efp transfers)

our small specs:

those small specs that have been long in gold added 3383 contracts to their long side

those small specs that have been short in gold added 2572 contracts to their short side

Silver COT Report: Futures
Large Speculators Commercial
Long Short Spreading Long Short
75,127 52,377 20,600 70,480 107,672
1,114 -16,988 528 -6,566 9,887
Traders
105 47 46 39 37
Small Speculators Open Interest Total
Long Short 192,423 Long Short
26,216 11,774 166,207 180,649
-2,974 -1,325 -7,898 -4,924 -6,573
non reportable positions Positions as of: 164 11

Our large speculators:

those large specs that have been long in silver added 1114 contracts to their long side

those large specs that have been short in silver covered a monstrous 16,988 contracts

Our commercials;

those commercials  that have been long in silver pitched a huge 6566 contracts from their long side

those commercials that have been short in silver added a net 9887 contracts

our small specs:

those small specs that have been long in silver pitched 2974 contracts

those small specs that have been short in silver covered 1325 contracts.

Major gold/silver trading /commentaries for FRIDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

Spectre, Meltdown Highlight Online Banking and Digital Gold Risks

Spectre and Meltdown Highlight Online Banking and Digital Gold Risks
– Critical hardware flaw breaks basic security: risks to online banking & digital assets
– Nearly all computers worldwide, smartphones and other devices – exposed to major security risk
– Two separate security flaws identified in devices powered by Intel, ARM and AMD chips
– Vulnerability known about for six months by tech insiders
– Cyber crime represents the biggest transfer of economic wealth in history
– Cyber crime damage costs to hit $6 trillion annually by 2021
– All digital assets and information at risk
– Crypto currencies, digital assets including gold exposed
– Physical gold’s benefits highlighted

Editor: Mark O’Byrne


The Spectre and Meltdown double whammy this week underlines the increasing risks in the global computing infrastructure and our online banking and digital asset world of banking and finance.

On Wednesday, came news that anyone who uses a computer, smartphone, tablet etc has been introduced to the concept of ‘hacked hardware’. Two separate security flaws, named ‘Meltdown’ and ‘Spectre’ have been identified in devices powered by Intel, ARM and AMD chips. The flaws make pretty much any device hackable.

Not only are our ‘things’ affected but data centres and devices that connect to the cloud are also at risk.

The problem was identified by Google engineers and has been known about for approximately six months. Whilst no attacks taking advantage of these security flaws have yet been identified, we are talking about an unprecedented number of computers, devices, people and companies, including banks, being exposed.

The BBC estimates that ‘for personal computers alone: there are 1.5 billion in use today (desktop and laptop combined) and around 90% are powered by Intel chips, IDC estimates. That means exposure to the Meltdown bug is potentially huge.’

Meltdown affects laptops, desktop computers and internet servers with Intel chips. However, Spectre is an arguably bigger threat. It affects chips powered by Intel, ARM and AMD. in smartphones, tablets and computers.

Why is this a big deal?

The weaknesses leave any device with affected chips vulnerable to both hacking and slowdown in performance. The flaw could give cyberattackers unauthorized access to sensitive data.

This is scary as for years users have been used to warnings by the tech industry that there are security holes in software. These are regularly taken advantage of by hackers. But we are now exposed to a flaw in hardware. Hardware troubles are arguably much harder to fix and newer impossible to replace given their extensive presence around the world.

Scott Borg, director of the U.S. Cyber Consequences Unit, is most concerned about hardware vulnerabilities over software ones. He sees the biggest threat in industry.

Borg recently spoke at Stanford University and explained the shift in hackers’ mentality:

“Initially,” he said, “[hackers] focused on operations control, monitoring different locations from a central site. Then they moved to process control, including programmable logic controllers and local networks. Then they migrated to embedded devices and the ability to control individual pieces of equipment…You can imagine countless attacks manipulating physical things,”

Why are hackers turning to hardware over software? Surely software has a greater reach? No, argues Borg. The decision to move to hardware is purely economic. Stock manipulation is a key way cyberattackers can take advantage of a hardware malfunction.

“There is a limit to how much you can steal from credit card fraud; there is no limit to how much you can make in taking a position in a market and making something happen,” Borg says. “You can short a company’s stock in a highly leveraged way, then attack the company in a way that makes stock fall, reinvest on the way down, and multiply your investment hundreds of times. This is a big growth area for cybercrime; it has been done multiple times already, but it is really just starting to get under way. This is going to be a huge area for cybercriminals.”

Previously individuals were worried about the clicking on a dodgy link or downloading an unknown file. Worst case we believed was credit card or identity fraud. Now, we’re looking at elements of our portfolio being attacked – imagine if you have shares affected by this latest round of news regarding chip security.

We are also, very seriously, facing an attack on our homes.

Nowhere is safe

This Christmas showed the smart home had arrived. Sales of Amazon’s Alexa and Google’s Echo made headlines as families realised they could have a smart home for just $500. The total spend on Internet of Things products and services was expected to reach $2 trillion by the end of last month.

Gadgets such as wearables and smart fridges make our busy lives more productive. They’re supposed to free up time for us to do ‘fun’ things but they arguably just create space for more tasks we create for ourselves, one of those being securing our home from hackers.

By the end of 2017 there were expected to be 8.4 billion internet-enabled devices in use, increasing to 20.4 billion by the end of 2020. This all sounds great but its a goldmine for hackers.

Which? carried out a series of tests in a ‘smart home’ last year. Eight out of the fifteen devices were found to have security vulnerabilities.

We can even be taken in by freebies. In 2006 McDonald’s Japan put their customers at major financial risk just by giving them a free mp3 player. Popular Science explains:

In late summer of 2006, the Japanese division of McDonald’s decided to run a new promotion. When customers ordered a Coca-Cola soft drink, they would receive a cup with a code. If they entered that code on a designated website and were among 10,000 lucky winners, they would receive an MP3 player pre-loaded with 10 songs.

Cleverly constructed, the promotion seemed destined for success. Who doesn’t like a Coke and a free MP3 player? But there was one problem the marketers at McDonald’s could not anticipate: In addition to 10 free songs, the music players contained QQPass malware. The moment winners plugged their players into a computer, the Trojan horse slipped undetected into their system and began logging keystrokes, collecting passwords, and gathering personal data for later transmission.

This is just one example but a good one of how easy it is for us to be affected by vulnerable hardware. These microchips that are under threat are in our fridges, our cars, our phone, planes and even missiles.

Popular Science goes onto explain:

Even hardware generally considered innocuous could be exploited by hackers and used for covert acts. Modified third-party phone chargers have served as vehicles for malware, as have game consoles. In the world of hardware hacking, any smart device—a refrigerator, clock, even a wearable fitness monitor—could be weaponized.

Such covert actions could inflict even greater harm were they to work their way into the backbone of the Internet: the servers and other networking equipment that comprise the infrastructure of the IT world. Instead of gathering embarrassing emails from a handful of executives, hackers with compromised servers could monitor most of the world’s Internet messages. As companies such as Huawei Technologies and ZTE Corporation—both of which supply telecommunication equipment and have ties to the Chinese military—continue to grow, so too will concerns about network security.

Significant cost

The Cybersecurity Business Report offers the following stats that outline just how vulnerable we are as society and financially:

1. Cyber crime damage costs to hit $6 trillion annually by 2021. It all begins and ends with cyber crime. Without it, there’s nothing to cyber-defend. The cybersecurity community and major media have largely concurred on the prediction that cyber crime damages will cost the world $6 trillion annually by 2021, up from $3 trillion just a year ago. This represents the greatest transfer of economic wealth in history, risks the incentives for innovation and investment, and will be more profitable than the global trade of all major illegal drugs combined.

2. Cybersecurity spending to exceed $1 trillion from 2017 to 2021. The rising tide of cyber crime has pushed information security (a subset of cybersecurity) spending to more than $86.4 billion in 2017, according to Gartner. That doesn’t include an accounting of internet of things (IoT), industrial IoT, and industrial control systems (ICS) security, automotive security, and other cybersecurity categories. Global spending on cybersecurity products and services are predicted to exceed $1 trillion over the next five years, from 2017 to 2021.

3. Cyber crime will more than triple the number of unfilled cybersecurity jobs, which is predicted to reach 3.5 million by 2021. Every IT position is also a cybersecurity position now. Every IT worker, every technology worker, needs to be involved with protecting and defending apps, data, devices, infrastructure and people. The cybersecurity workforce shortage is even worse than what the jobs numbers suggest. As a result, the cybersecurity unemployment rate has dropped to zero percent.

4. Human attack surface to reach 6 billion people by 2022. As the world goes digital, humans have moved ahead of machines as the top target for cyber criminals. There are 3.8 billion internet users in 2017 (51 percent of the world’s population of 7 billion), up from 2 billion in 2015. Cybersecurity Ventures predicts there will be 6 billion internet users by 2022 (75 percent of the projected world population of 8 billion) — and more than 7.5 billion internet users by 2030 (90 percent of the projected world population of 8.5 million, 6 years of age and older). The hackers smell blood now, not silicon.

5. Global ransomware damage costs are predicted to exceed $5 billion in 2017.That’s up from $325 million in 2015—a 15X increase in two years, and expected to worsen. Ransomware attacks on healthcare organizations—the No. 1 cyber-attacked industry—will quadruple by 2020. Cybersecurity Ventures predicts that a business will fall victim to a ransomware attack every 14 seconds by 2019.

What does it all mean? In 2015, Ginni Rometty, IBM’s chairman, president and CEO, said, “Cyber crime is the greatest threat to every company in the world.

How can we protect ourselves?

It’s not time to move off-grid, we’re not suggesting that – don’t worry. But what we do suggest is that you take an element of your portfolio, savings and wealth off-grid.

Physical gold that is allocated and segregated is about as off-grid as you can get when it comes to investments. Sure, you can have some crypto currencies and some shares but they’re unbelievably connected to the outside world thanks to just the click of button. You cannot transact them without using an electronic device.

When it comes to physical gold, it does not rely on you having the safest chip in your smartphone or ensuring no-one is listening to you at home chatting to your loved ones.

Gold bullion has been bought by millions all over the world because of its role in protecting investors during times of war, financial hardship and economic disasters. It is only recently that the idea of cyber warfare and the misuse of this power by governments has become an important point of consideration.

Gold is as relevant here as it always has been. But it is specifically allocated, segregated physical gold which will protect from these risks – not paper gold or digital gold.

Owning gold coins and bars either in one’s possession or in allocated and segregated storage will protect people and will be accessible and liquid. It will protect investors and savers and those who use online banking from malicious attacks. Let’s face it we’re all there already and these growing risks are very real.

Related reading

Internet Shutdowns Show Risk of Digital Gold Platforms

Cyberwar Risk – Was U.S. Navy Victim Of Hacking?

Cyber Wars Could Crash Markets and Threat To Humanity – Buffett and Rickards

News and Commentary

Gold scores longest winning streak since 2011 (MarketWatch.com)

Palladium prices could top gold as record rally continues – GoldCore in Marketwatch (MarketWatch.com)

Turkish central bank’s gold holdings hit record as dollar holdings fall (HurriyetDailyNews.com)

Pakistan ditches dollar for trade with China hours after Trump’s denunciation (CNBC.com)

London house prices dropped in 2017: This is how the experts reacted (CityAM.com)


Commodites Are Cheap Versus Stocks (Incrementum via Capital and Conflict)

Next Decade’s Most Important Chart (CapitalAndConflict.com)

Gold ETF GLD just did something it’s never done before (CNBC.com)

Dow 25K! Here’s what it says about the stock market (MarketWatch.com)

6 money lessons I’m going to remember this year (StansBerryChurcHouse.com)

Iranians Struggle As The Cost Of Basic Goods Surges (Statista.com)

Morgan Stanley Wealth Sells All Junk Bond Holdings, Warns Of Recession Risk (ZeroHedge.com)

Jeremy Grantham, who predicted the last two bubbles, warns the stock market is ready for a “melt-up” (CityAM.com)

Gold Prices (LBMA AM)

04 Jan: USD 1,313.70, GBP 969.77 & EUR 1,090.24 per ounce
03 Jan: USD 1,314.60, GBP 968.20 & EUR 1,092.96 per ounce
02 Jan: USD 1,312.80, GBP 968.85 & EUR 1,087.52 per ounce
29 Dec: USD 1,296.50, GBP 960.84 & EUR 1,082.45 per ounce
28 Dec: USD 1,291.60, GBP 960.43 & EUR 1,082.75 per ounce
27 Dec: USD 1,285.40, GBP 958.78 & EUR 1,081.54 per ounce
22 Dec: USD 1,268.05, GBP 947.74 & EUR 1,069.85 per ounce
21 Dec: USD 1,265.85, GBP 945.97 & EUR 1,065.09 per ounce

Silver Prices (LBMA)

04 Jan: USD 17.13, GBP 12.64 & EUR 14.20 per ounce
03 Jan: USD 17.12, GBP 12.63 & EUR 14.25 per ounce
02 Jan: USD 17.06, GBP 12.59 & EUR 14.15 per ounce
29 Dec: USD 16.87, GBP 12.48 & EUR 14.07 per ounce
28 Dec: USD 16.74, GBP 12.46 & EUR 14.02 per ounce
27 Dec: USD 16.50, GBP 12.30 & EUR 13.87 per ounce
22 Dec: USD 16.18, GBP 12.08 & EUR 13.65 per ounce
21 Dec: USD 16.15, GBP 12.08 & EUR 13.61 per ounce


Recent Market Updates

– Gold Has Best Year Since 2010 With Near 14% Gain In 2017
– Happy 2nd Birthday Bail-in Tool! We Suggest Gold As The Perfect Gift
– 98,750,067,000,000 Reasons to Buy Gold in 2018
– Gold, Bitcoin and the Blockchain Replaces the Banks – Realists Guide To The Future
– It’s A Wonderful Life Is A Wonderful Lesson To Hold Gold Outside of The Banking System
– Goldnomics Podcast – Gold, Stocks, Bitcoin in 2018. Everything Bubble Bursts?
– What Peak Gold, Interest Rates And Current Geopolitical Tensions Mean For Gold in 2018
– New Rules For Cross-Border Cash and Gold Bullion Movements
– ‘Gold Strengthens Public Confidence In The Central Bank’ – Bundesbank
– WGC: 2018 Set To Be A Positive Year For Price of Gold and Investors
– Year-end Rate Hike Once Again Proves To Be Launchpad For Gold Price
– UK Stagflation Risk As Inflation Hits 3.1% and House Prices Fall
– Buy Gold, Silver Time After Speculators Reduce Longs and Banks Reduce Shorts

janskoyles
end
India’s imports climb to almost 1000 tonnes in 2017.
(courtesyBloomberg) 

Gold Imports Said to Rebound Amid Signs India’s Tax Woes Fading

  • Purchases said to have surged 37% in Dec., snaps 3-month drop
  • Global gold prices have risen for four straight weeks

Gold imports by India, the world’s second-biggest market after China, surged 37 percent in December after falling for three straight months, according to a person familiar with the data.

Inward shipments increased to 77.7 metric tons from 56.9 tons a year ago, the person said, asking not to be named as the information isn’t public. In value terms, purchases rose 39.8 percent to 176.7 billion rupees ($2.8 billion). Finance Ministry spokesman D.S. Malik declined to comment.

The data is the latest sign that Asia’s No. 3 economy is recovering from a new consumption tax implemented in July, which had weakened demand and disrupted businesses. Jewelry is among India’s top exports, accounting for about 15 percent of total sales from April through October.

Read: India’s Services Revive as Investors Await GDP Forecast

Including December’s purchases, India’s total imports of gold jumped 66 percent in 2017 to 946.3 tons, according to data compiled by Bloomberg.

Indian consumers probably bought 650-750 tons of the metal last year, according to the World Gold Council — similar to 2016 levels which marked the slackest demand since 2009. In the past year, the sector has also been hurt by tougher requirements for buyers to prove their identity before a purchase, and the capping of the amount of cash used in these transactions.

Gold has started 2018 strongly. The metal is up for a fourth straight week, the longest stretch since June.

end

China’s demand now back over 2000 tonnes

(courtesy Lawrie Williams)

LAWRIE WILLIAMS: China’s 2017 Gold Demand back over 2,000 tonnes

Writing here a month ago we speculated that China’s gold demand for the whole of 2017 as measured by Shanghai Gold Exchange (SGE) gold withdrawals would exceed 2,000 tonnes again. In the event we have been proved correct with SGE full year gold withdrawals totalling a little over 2,030 tonnes thus demonstrating that any talk of falling gold demand in Asia’s economic giant was premature at the least. True it did not equal that of the record 2015 year, but exceeded that of 2016 by around 3%, despite the Chinese New Year falling later this year which would tend to slightly depress the December demand figure by deferring some of the inventory building ahead of the holiday by around 2 weeks.

Month 2017 2016 2015 % change 2016-2017 % change 2015-2017
January 184.41 225.08 255.42 – 18.1%  -27.8%
February* 148.24 107.60 156.36 +37.8% -5.2%
March  192.25 183.24 213.35  +4.9%  -9.9%
April  165.78 171.40 195.45  -3.3%  -15.2%
May  138.08 147.28 162.15  -6.2%  -14.8%
June  155.51 138.51 195.67  +12.3% -20.5%
July  144.71 117.58 285.50  +23.1%  -49.3%
August  161.41 144.44 265.27  +11.7%  -39.2%
September  214.24 170.90 259.98 +25.4% -17.6%
October*  151.54  153.25 176.29  -1.1%  -14.0%
November  189.10  214.72 202.71 -11.9%   -6.7%
December  185.21  196.37 228.21  -5.7%     -18.8%
Full Year  2,030.48  1,970.37 2,596.37  +3.05%

*Short trading months due to Chinese national holidays

Source: Shanghai Gold Exchange, http://www.Lawrieongold.com

As we have pointed out here beforehand there is disagreement among analysts as to whether SGE withdrawal figures are a true measure of Chinese demand. However we continue to point out that totalling up known gold imports from nations which publish country by country gold export figures, plus China’s own known gold production and making a small allowance for scrap conversion gives us a far closer total to the published SGE withdrawal figures than any other Chinese demand estimates which tend to ignore the substantial amounts being absorbed by Chinese banks and financial institutions. So we continue to stand by our estimates equating SGE withdrawals to Chinese demand – a position that China’s Central Bank seems to agree with too.

Even though China’s economy may be flatlining at the moment it continues to be in an overall growth phase as it transforms its economy from an export driven system to a domestic-demand driven one. The middle classes continue to grow in numbers thus enhancing demand for goods, but there is also an inbuilt propensity towards savings and gold and silver play an important part in this. So we would anticipate gold demand in the nation to grow alongside the increase in domestic wealth.

We also assume that the nation is surreptitiously enhancing its gold reserves, even though it claims them to be static. The Chinese state-owned banks are believed to hold large amounts of gold bullion and these are almost certainly considered part of the nation’s gold reserve by the government and the Central Bank. Yet these holdings do not fall into any category that they consider need to be reported to the IMF. and thus appear in the official gold reserve figure, – unless, and until, there is seen to be political advantage in moving them into reportable accounts.

05 Jan 2018

end



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

Relentless Stock Market Meltup Smashes Records Around The Globe

Meltup groundhog day continues as global equity markets begin 2018 with another day of record highs and with their best week in more than a year, extending last year’s rally that has seen volatility plunge and risk appetite surge.

The new year’s ramp to new record highs in stock markets around the world continued for a fourth day on Friday when U.S. equity index futures, European and Asian shares all rose, as did the dollar while oil dropped ahead of the US payrolls report. MSCI’s gauge of world stocks was up 0.15%, above 524 points and at a fresh record high.

European markets opened firmer after Asian shares approached record levels. The pan-European STOXX 600 index was up 0.5%, holding at a two-month high, and the first trading week of the new year looks set to be the best for Euro zone stocks since May, as shares shrug off a stronger single currency that could dampen export earnings. Automakers and healthcare stocks outperformed.

Europe’s surge followed more upside in Asia, where stock indexes in Japan, South Korea and China all rose after U.S. shares surged to fresh records Thursday. The MSCI Asia Pacific Index rose 0.5%, rising for a fourth day to cap its best week since July 2017. Equity benchmarks in the region rose except those in Singapore and Vietnam. The benchmark Topix index is poised for a two-day advance of more than 3%. Materials and healthcare sub-gauges of Asia’s regional index led the gains, rising more than 0.7% each.  Australia’s ASX 200 (+0.7%) continued to make fresh 10yr highs with the index finding support from financial and mining stocks. Nikkei 225 (+0.9%) had its best two day gain since November and probed 26yr highs amid the rise in banking stocks, while Chinese markets also posted gains (Shanghai Comp +0.2%, Hang Seng Index +0.3%). Emerging-market equities reached the highest since 2011.

European bonds were mixed and the euro slipped as data showed inflation in the region slowed. Euro-area inflation slowed to 1.4 percent last month from November’s 1.5 percent, and the underlying rate unexpectedly failed to accelerate, instead holding at 0.9%. As Bloomberg notes, the data highlight the challenge the ECB faces in judging when to unwind its crisis-era stimulus measures, even as some Governing Council members warn of the risks of postponing the decision for too long.

“It could be something of a roller-coaster ride for headline inflation because of oil prices, but what remains crucial is core,” Nick Kounis, head of financial markets research at ABN Amro in Amsterdam, said before the report. “If we’re going to see flattish core inflation prints – and if we see flattish wage prints – then that would make the ECB cautious.”

asde

Today, traders will focus on the U.S. jobs data – and especially wage growth – after minutes released this week from the latest Fed policy meeting indicated most officials favored raising interest rates gradually. The euro stayed lower after data showed annual inflation in the currency bloc slowed in December.

Strategists at Credit Agricole, including Valentin Marinov, said while there was an “upside risk” to the U.S. nonfarm payrolls figures, it would be the average hourly earnings numbers that “should prove to be the most important metric.” “We suspect the dollar will struggle to get much support from a solid headline NFP print in the absence of an acceleration in wage growth,” they wrote in a client note.

The Bloomberg Dollar Spot Index extended gains after trading near three month lows, as investors look to U.S. employment data, with Street whisper numbers pointing to larger job gains compared with the economist consensus forecast of +190K. The EURUSD hovered near day lows after core euroarea inflation missed estimates. Treasury futures drift lower to push cash yields higher cross the curve; 10-year U.S.-German yield gap widens, partly retracing end-2017 compression.

Asia’s emerging-market currencies advanced this week amid continuing weakness in the dollar and as optimism over global growth spurred demand for developing-nation assets. The MSCI EM Asia Index had its best week since July, while sovereign bonds fell. Asia has “promising growth momentum and resilient external positions,” said Frances Cheung, head of Asia Macro strategy at Westpac Banking Corp. in Singapore. The yen dropped for a third day as investors waited for U.S. jobs data. The Australian dollar declined after November trade figures showed an unexpected deficit, while the New Zealand dollar was steady near a two-month high

Oil prices slipped from highs last seen in 2015 after soaring U.S. production undermined a 10-percent rally from lows hit in December driven by tightening supply and political tensions in Iran, and as oil neared a key resistance level.

erfd

Gold prices dipped from the previous session’s 3-1/2 month high, ahead of the U.S. non-farm payroll data, but remained on track for their fourth straight weekly gain.

The 10-year U.S. Treasuries yield stood at 2.460% below its seven-month peak of 2.504% touched on Dec. 21. Germany’s 10-year yield was unchanged at 0.43%, Britain’s 10-year yield fell one basis point to 1.227% while Japan’s 10-year yield rose 1 bp to 0.063%, the highest in more than two months.

Signs of the investor appetite for risk more broadly were evident in Greece, where the euro zone member’s 10-year borrowing costs hit their lowest in 12 years on Friday. The country, recently on the verge of defaulting on its debts, has benefited from expectations of a clean exit from its bailout this year and a revival in the economy.

“Greece’s fundamentals have been on the mend and investors have been looking at the yield pick-up they get from investing in that debt,” said DZ Bank strategist Christian Lenk. “Also, a rising tide lifts all boats – with the euro zone economy doing so well, it’s a very ‘risk on’ environment and that is benefiting Greece.”

Expected data include unemployment rate, non-farm payrolls, factory orders and durable-goods orders. Constellation Brands is among companies reporting earnings.

Market Snapshot

  • S&P 500 futures up 0.3% to 2,730.75
  • STOXX Europe 600 up 0.5% to 395.67
  • MSCI Asia Pacific up 0.6% to 179.04
  • MSCI Asia Pacific ex Japan up 0.6% to 586.16
  • Nikkei up 0.9% to 23,714.53
  • Topix up 0.9% to 1,880.34
  • Hang Seng Index up 0.3% to 30,814.64
  • Shanghai Composite up 0.2% to 3,391.75
  • Sensex up 0.5% to 34,141.10
  • Australia S&P/ASX 200 up 0.7% to 6,122.35
  • Kospi up 1.3% to 2,497.52
  • German 10Y yield fell 0.5 bps to 0.429%
  • Euro down 0.2% to $1.2047
  • Italian 10Y yield fell 5.2 bps to 1.746%
  • Spanish 10Y yield fell 1.4 bps to 1.529%
  • Brent futures down 0.9% to $67.48/bbl
  • Gold spot down 0.4% to $1,317.36
  • U.S. Dollar Index up 0.2% to 92.07

Top Overnight News

  • Euro-area inflation slowed to 1.4% last month from November’s 1.5%, and the underlying rate unexpectedly failed to accelerate, easing pressure on the ECB to unwind stimulus
  • President Donald Trump fired off a tweet saying that a book alleging dysfunction, backstabbing and chaos in his administration was “full of lies” and that he had given the author, Michael Wolff, “zero access” to the White House; Wolff’s publishers said they would bring forward publication of “Fire and Fury” to Friday
  • China capped how much bond traders at brokerages and fund companies can earn from a year’s work to 1 million yuan ($154,000), people with knowledge of the matter said, as regulators step up a campaign to control risk-taking across financial markets

Asian equities closed the week out on a high, following yet another day of gains in the US, whereby the DJIA broke 25k for the first time. Strong data out of the US boosted sentiment with the ADP figure beating analysts’ estimates, hinting at a firm number in today’s US NFP report. ASX 200 (+0.7%) continued to make fresh 10yr highs with the index finding support from financial and mining stocks. Nikkei 225 (+0.9%) had its best two day gain since November and probed 26yr highs amid the rise in banking stocks, while Chinese markets also posted gains (Shanghai Comp +0.2%, Hang Seng Index +0.3%)

Top Asian News

  • Bubbly H.K. Housing Is Unsustainable, $2.6 Billion Fund Says
  • HNA Said to Walk Away From Late-Stage Value Partners Talks
  • Axiata Surges as Carrier Said to Mull $500 Million Tower IPO
  • China Is Said to Keep 6.5% Economic Growth Target Amid Debt Push
  • China Data Mismatch Could Imperil Aluminum’s Stand-Out Surge

European equities (Eurostoxx 50 +0.5%) are also trading higher across the board in the wake of another upbeat Asia-Pac session which saw the Nikkei 225 print its best two-day gain since November. In terms of sector performance, auto names are performing well with Volkswagen (+2.7%), Peugeot (+2.7%) and Fiat Chrysler (+3.2%) all top of the DAX, CAC 40 and FTSE MIB respectively following a slew of broker upgrades at JP Morgan with utility names, Centrica (+1.9%) and United Utilities (+1.4%) at the top of the FSTE 100 following broker upgrades at Credit Suisse. Elsewhere, Dialog Semiconductor (-3.7%) shares are lagging their peers in the wake of reports that Apple products have been hit by chip flaws.

Top European News

  • U.K. Car Sales Drop Most Since Recession on Brexit, Diesel Fears
  • Euro-Area Inflation Slows, Undermining Calls for ECB to Curb QE
  • Ryanair Pulls Further Ahead of Pack Even After Pilot Debacle
  • Deutsche Bank CIB Unit Sought $1.5 Billion Bonus Pool, WiWo Says
  • Dole Food Takeover Approach From Belgium’s Greenyard Fails
  • President Macron Wins French Pollsters’ First Ever ‘Beer Test’

European fixed income has seen trading volumes remain paltry even by normal pre-US jobs data standards (MiFiD 2 and tighter Chinese bond market rules may help to explain low turnover), but there have been some decent moves, disconnects and distortions. Gilts have confounded the weaker or indifferent impulses seen ahead of the Liffe open to push ahead from the off (aside from a brief 2 tick stutter below parity), and printed at 124.88 for a 23 tick gain on what appears to be at least corrective due to their earlier closing time. Nevertheless, Bunds have caught a bid to register a fresh Eurex peak as well, at 161.74 (+15 ticks vs -9 ticks at the other extreme), after holding in at the 50% retracement support level. 161.82-86 forms the next tech resistance area, while bears will still be eyeing 161.36 ahead of Thursday’s 161.26 low and the 161.18 ultimate downside target that has survived several times. US Treasuries marginally weaker pre-NFP, aside from flat 2 year notes as the curve steadies a tad following the most recent bout of flattening.

In FX markets, AUD/USD one of the big movers overnight, with the pair recoiling from 0.7870 to a 0.7835 low on the back of Aussie trade data showing a deficit vs expected surplus as exports completely stagnated. Elsewhere, broad risk appetite, as Wall Street sets more all-time records and global stocks continue to rally, has undermined the traditional safe-haven currencies, and with the JPY also losing ground amidst decent cross-related flows (ie EUR/JPY bids said to be targeting 140.00 from around 136.50 currently). NZD/CAD/GBP/EUR are all holding up relatively well vs the USD as the DXY attempts to stay within touching distance of the 92.000 handle ahead of today’s US jobs report.

In commodities, both WTI and Brent crude futures are seen lower as markets take a breather from the recent rally which had lifted prices to multi-year highs with some profit-taking potentially entering the market. In terms of energy newsflow, things remain on the light side but markets remain sensitive to events in Iran and any potential backlash from the US via sanctions. In metals markets, gold prices have been seen lower overnight amid touted profit-taking, albeit prices remain in close proximity to recent highs. Elsewhere, Chinese steel futures were seen lower overnight as weather concerns continue to sway prices whilst Zinc (highest since mid-2007) remains supported in London amid supply fears.

Looking at the day ahead, the December CPI for the Eurozone (1.4% yoy expected), France (1.3% yoy expected) and Italy are due. Then the Eurozone’s November PPI, Germany’s retail sales and France’s consumer confidence data are also due. In the US, there is the December nonfarm payrolls, ISM non-mfg composite, unemployment rate and average hourly earnings data. Elsewhere, the November trade balance, factory orders as well as the final readings for the durable and capital goods orders are also due. Onto other events, the Fed’s Harker and Mester are both scheduled to speak.

US Event Calendar

  • 8:30am: Change in Nonfarm Payrolls, est. 190,000, prior 228,000
    • Unemployment Rate, est. 4.1%, prior 4.1%; Underemployment Rate, prior 8.0%
    • Average Hourly Earnings MoM, est. 0.3%, prior 0.2%; YoY, est. 2.5%, prior 2.5%
    • Average Weekly Hours All Employees, est. 34.5, prior 34.5
  • 8:30am: Trade Balance, est. $49.9b deficit, prior $48.7b deficit
  • 10am: ISM Non-Manf. Composite, est. 57.6, prior 57.4
  • 10am: Factory Orders, est. 1.1%, prior -0.1%; Ex Trans, prior 0.8%
  • 10am: Durable Goods Orders, prior 1.3%; Durables Ex Transportation, prior -0.1%
    • Cap Goods Orders Nondef Ex Air, prior -0.1%;

DB’s Jim Reid concludes the overnight wrap

Flying at the moment are risk assets after a strong day yesterday. More on this later but it’s an important day for data today. Hot on the heels of a bumper US manufacturing ISM on Tuesday (59.7 vs. 58.2 expected), a beat on the services PMI (53.7 vs 52.5 expected) and ADP (250k vs 190k expected) yesterday, today sees the all-important US employment report. To be honest payrolls (DB forecast upped from 185k to 220k last night, consensus 190k but probably higher now after ADP) is a sideshow as Average Hourly Earnings will be the key part of the release. Both DB and consensus are expecting 0.3% MoM and 2.5% YoY. Earnings are key at the moment as this global recovery/expansion has everything apart from wage growth/inflation which in turn is keeping the Fed rate hikes gradual and volatility low. DB has put out a fair amount of research over the last few weeks detailing how US wage growth is picking up so it’ll be interesting to see whether this can find its way into the main headline data soon!

Elsewhere in the report the unemployment rate (4.1% vs. 4.1%) should remain stable at its lowest level since 2000. Our economists expect this stability to be temporary as they expect the unemployment rate to break through 4% in H1 2018. This level could prove important since they recently found using state-level data  that wage growth picks up significantly as the unemployment rate falls below 4%. So they would argue wage growth is coming even if today’s number is flat.

Given the recent strength in US data, it’s interesting that the big call out of DB yesterday was to target 1.30 on EUR/USD in 2018. George Saravelos suggests that although the Fed is hiking rates, US rate differentials are widening and the dollar has become a G10 high-yielder, the dollar is not responding. He thinks current dynamics look very similar to the 2004-06 Fed cycle. Back then the dollar weakened even as the dollar became one of the highest-yielding currencies in the world. Weaker flows into the US mattered more than rising rates. Our FX team believe flows will matter more in 2018 too, and these are decidedly EUR/USD positive.

The buzz phrase yesterday was speculation about whether we were in a ‘melt up’ for risk assets. US bourses reached fresh highs for the third consecutive day with the S&P 500 up 0.40% and the Dow cracking through 25,000. All Euro equities were higher with Stoxx 600 up 0.89% to the highest in 8-weeks and the Nikkei jumping 3.26% near its 26 year high after trading resumed for 2018. Within the S&P, all sectors excluding real estate and utilities were in the green while the Stoxx’s gains were led by financials and energy stocks. Elsewhere, credit spreads continue to grind tighter (c1bp lower), with US CDX IG now at 46.1bp and Europe Main at 43.9bp.

This morning in Asia, markets are trading higher as we type. The Kospi is up 1.08% and reversing its underperformance from yesterday, while Nikkei and Hang Seng are up 0.82% and 0.05% respectively. Elsewhere, North Korea has accepted South Korea’s proposal for talks on 9 January and Japan’s December Nikkei composite PMI was in line at 52.2.

Staying in Asia, our Japanese team published their macro and equity outlook for 2018. They expect a slowing Japanese economy and forecast 0.9% real GDP growth in 2018 (vs. FY17 1.9%; FY19 0.8%). They note durable goods spending, capital investment and housing investment are at the end of their cycles or are in the midst of transitioning to a decline. On rates, they believe the expected US rate hikes in 2018 should not have much impact on yen interest rates as long as the BOJ continues its yield curve control (YCC) policy – which should continue on the assumption that core CPI will not consistently exceed 1%. Further, they expect Haruhiko Kuroda to be reappointed as BOJ governor, in part due to the absence of a strong alternative candidate. Finally, they maintain their positive stance on Japanese equities, mainly driven by their expectations that aggregate Japanese earnings will remain strong, supported by slowing but robust global growth and a stable if not weaker yen. For more details, refer to the link.

Now recapping other market performance from yesterday. In government bonds, core 10y yields were mixed but little changed. Treasuries initially weakened after the strong ADP print, but pared losses to close +0.5bp to 2.453%, while Gilts rose 2bp and Bunds fell 0.6bp. Notably, peripherals outperformed with yields down 5-7bp, in part supported by Spain’s first government bond sale for the year, selling €4.6bn of bonds which was towards the top end of its targeted range.

Turning to currencies, the US dollar index weakened 0.32%, while Sterling and Euro gained 0.26% and 0.44% respectively. In commodities, WTI oil rose 0.42% and consolidated near its three year high after the EIA report confirmed a fall in US crude inventories. Elsewhere, precious metals strengthened c0.6% (Gold +0.75%; Silver +0.54%) and other base metals also advanced modestly (Copper flat; Zinc +0.62%; Aluminium +0.43%).

Away from markets and onto Brexit, France’s President Macron has called for a unified EU approach and “common mandate” amongst EU members in the next stage of Brexit talks. He noted that each country can have their own interests, but if we acted like the prisoner’s dilemma game theory, then its “probable that collectively we’ll create a situation that is unfavourable to the EU and thus to each one of us”. Elsewhere, the Under Secretary of Agriculture for Trade and Foreign Agricultural Affairs Ted McKinney noted if the UK has its own rules on farming and food standards rather than keeping the existing EU rules, then “there is much greater opportunity for trade” between the two countries.

In the US, the Fed’s Bullard reiterated his views that a tightening labour market is unlikely to materially lift inflation. He also noted that he “would not want the Fed to push so hard that we get to an inverted yield curve situation” and that the yield curve issue “is something that needs to be debated out sooner rather than later”. On Bitcoin, he noted it is not something “that monetary policy makers have to worry very much about at this point”. Elsewhere, the SEC Chairman Jay Clayton noted that “…we again caution you that, if you lose money (on cryptocurrencies), there is a substantial risk that our efforts will not result in a recovery of your investment.”

Before we take a look at today’s calendar, we wrap up with other data releases from yesterday. In the US, the final reading for the December composite PMI was above expectations at 54.1 (vs. 53 previous). Elsewhere, the weekly initial jobless claims were higher than expectations (250k vs. 240k) but continuing claims (1,914k vs. 1,928k expected) were lower.

In Europe, the final readings for the Eurozone’s services and composite PMI were both revised 0.1ppt higher to 56.6 and 58.1 respectively – the highest since the GFC. On a country basis, Germany’s services PMI was unrevised at 55.8 but the composite PMI was 0.2ppt higher at 58.9. In France, its composite PMI was revised 0.4ppt lower to 59.6. Finally, the flash composite PMI for Italy was above market (56.5 vs. 56 expected) while the UK was softer (54.9 vs. 55 expected).

In the UK, the December Nationwide House price index was above market at 2.6% yoy (vs. 2.0% expected), while London posted its first full year decline since 2009 (albeit -0.5% yoy). Elsewhere, the November mortgage approvals (65.1k vs. 64.1k expected) and net lending on dwellings both beat expectations (£3.5bln vs. £3.4bln).

Looking at the day ahead, the December CPI for the Eurozone (1.4% yoy expected), France (1.3% yoy expected) and Italy are due. Then the Eurozone’s November PPI, Germany’s retail sales and France’s consumer confidence data are also due. In the US, there is the December nonfarm payrolls, ISM non-mfg composite, unemployment rate and average hourly earnings data. Elsewhere, the November trade balance, factory orders as well as the final readings for the durable and capital goods orders are also due. Onto other events, the Fed’s Harker and Mester are both scheduled to speak.

end

3. ASIAN AFFAIRS

3 a NORTH KOREA/USA

NORTH KOREA/

high level talks between the two Koreas seems to suggest de- escalation

(courtesy zerohedge)

De-Escalation? Koreas Agree To Hold High-Level Talks Next Week

North Korea is on a roll: just hours after it emerged that in a diplomatic victory for the Kim regime the US and South Korea agreed not to hold military drills during the Olympics, moments ago Yonhap reported that in the latest sign of de-escalation between the neighboring rivals, South and North Korea agreed on Friday to hold high-level talks next week to discuss Pyongyang’s potential participation in the PyeongChang Winter Olympics as well as ways to improve ties.

dsf

North Korea notified Seoul that it has accepted South Korea’s latest offer for talks next Tuesday, according to Seoul’s unification ministry.

“The two sides decided to discuss working-level issues for the talks by exchanging documents,” Baik Tae-hyun, ministry spokesman at the ministry, told a press briefing.

The meeting, on 9 January, will focus on finding a way for North Korean athletes to attend the Winter Olympic Games in South Korea in February, the BBC adds. As we reported previously, North Korean leader Kim Jong-un said this week that sending a delegation to the games would be “a good opportunity to show unity of the people”.

The meeting is expected to be held at Panmunjom, on the border. The so-called peace village, in the heavily guarded demilitarised zone (DMZ), is where the two sides have historically held talks.

The move came after North Korean leader Kim Jong-un expressed willingness to send a delegation to the Olympics to be held in the South next month and said the country is open to inter-Korean talks over the matter during his New Year address. The South proposed Tuesday for a high-level meeting in response.

And, as discussed earlier today, the agreement came as the South and the United States agreed late Thursday to delay their joint military drills during the Winter Olympics.

North Korea has long denounced the military drills as a war rehearsal and used them as an excuse for its provocations. But the South and the U.S. said that the exercises are defensive in nature.

Next week’s talks will be the first inter-Korean dialogue since December 2015.

North Korea sent a document to the South under the name of Ri Son-gwon, the head of the North’s state agency in charge of inter-Korean affairs. The receiver is South Korean Unification Minister Cho Myoung-gyon, the ministry said.

After a nine-year rule of two conservative governments, liberal President Moon, who favors engagement with Pyongyang, took office in May last year. But the North’s nuclear and missile threats have prompted him to maintain the dual track of seeking sanctions and dialogue.

Seoul hopes that better inter-Korean relations can help pave the way for the resolution of North Korea’s nuclear issue and broader talks between the U.S. and North Korea.

Still, some more cynical and skeptical experts said that the North’s overture to South Korea may be aimed at weakening the united front in enforcing sanctions on Pyongyang and driving a wedge in the decades-long alliance between Seoul and Washington. Of course, if contrary to all the recent peace talk North Korea surprises everyone and launches an ICBM during the olympics, it would be a strong tell that recent events were only meant to make Trump look bad, well, worse.

end

 

3 b JAPAN AFFAIRS

c) REPORT ON CHINA

4. EUROPEAN AFFAIRS

6. GLOBAL ISSUES

7. OIL ISSUES

8. EMERGING MARKET

 end

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

DOW: UP 220.74 OR .88%

NASDAQ UP 58.64 OR 0.83%

TRADING IN GRAPH FORM FOR THE DAY

Risk Hits Record Low, Ripple Ravaged As Gold Has Longest Ever Win Streak

What a week…

Quick summary of this week’s records:

  • Record highs for S&P, Dow, and Nasdaq.
  • Lowest VIX close ever.
  • First time VIX has ever traded at or below 9.00 for 3 straight days ever.
  • Nasdaq’s best start to a year since 2004.
  • Near record streak for stocks to remain within 5% of all-time high ever.
  • Individual investors highest stock exposure since 2000.
  • Fastest yield curve flattening since 2007.
  • Longest streak of complacency for risk ever.
  • Longest winning streak for gold ever.
  • Longest winning streak for global commodities ever.

So stocks opened gap up on Tuesday and never looked back…Nasdaq was the week’s big winner… A perfect (holiday-shortened) week for stocks with every index up every day this week…

https://www.zerohedge.com/sites/default/files/inline-images/20180105_eod13.jpg

This week was the biggest short squeeze in 4 months…

https://www.zerohedge.com/sites/default/files/inline-images/20180105_eod14.jpg

As SentimentTrader.com notes, individual investors have the most stock exposure since 2000, and their short-term optimism is now rising. It has done an about-face during the past two months, going from pessimism to the 2nd-highest optimism since the 2009 low.

https://www.zerohedge.com/sites/default/files/inline-images/20180105_eod1_0.png

Additionally, Citi’s Macro Risk Index has now been below its neutral level (meaning relatively low risk aversion) for the longest period in its history starting in 1997. The last time it measured higher than average risk aversion was November 2016.

https://www.zerohedge.com/sites/default/files/inline-images/20180105_eod2_0.jpg

VIX closed at record lows this week and traded at 9.00 or lower for 3 straight days – something it has never done before…

https://www.zerohedge.com/sites/default/files/inline-images/20180105_eod11.jpg

Gold was the day’s big winner post-Payrolls… until the late-day meltup in stocks…

https://www.zerohedge.com/sites/default/files/inline-images/20180105_eod12.jpg

Investors were buying anything with risk… High Yield bonds had the best week in 5 months, smashing back above the 200DMA…

https://www.zerohedge.com/sites/default/files/inline-images/20180105_eod7.jpg

Despite all the equity exuberance, the Treasury yield curve hit new cycle lows and ended flatter on the week…

https://www.zerohedge.com/sites/default/files/inline-images/20180105_eod4.jpg

Treasury yields did rise on the week, snapping higher today after the dismal jobs data…

https://www.zerohedge.com/sites/default/files/inline-images/20180105_eod6.jpg

The Dollar Index fell for the 4th straight week, closing at its lowest since September…

https://www.zerohedge.com/sites/default/files/inline-images/20180105_eod5.jpg

Gold and Bitcoin had a big week….

https://www.zerohedge.com/sites/default/files/inline-images/20180105_eod8.jpg

Copper’s first weekly drop in a month as the rest of the commodity space surged to the longest daily win streak in history…

https://www.zerohedge.com/sites/default/files/inline-images/20180105_eod9.jpg

And in crypto-land, Ripple unraveled today – crashing 35% – before ramping back higher on headlines about Western Union adopting the protocol… ETH (topped $1000) just outperformed XRP on the week…

https://www.zerohedge.com/sites/default/files/inline-images/20180105_eod3.jpg

and Bitcoin topped $16,500…

https://www.zerohedge.com/sites/default/files/inline-images/20180105_eod10.jpg

And don’t forget – Tepper and Cohn have now told you that stocks are not expensive…

Nope…

1

Nope…

Forward P/ETWO

end

A sigma 3 miss on the jobs report as the December job number comes in at only 148,000 instead of the whisper number of 200,000

December Jobs Miss Huge At Only 148K; Hourly Earnings In Line

Well, so much for that 200K+ whisper number for December payrolls, and it appears that Goldman’s warning that winter storms in the last month of the year would depress jobs was spot on after moments ago the BLS reported that December payrolls tumbled from an upward revised 252K in November (from 228K) to only 148K, a 3-sigma miss to expectations of 190K, and the lowest print since July.

asd

The December payrolls number was below all but one sellside estimate:

asd

There was also a big slowdown in private payrolls, which rose 146k vs prior 239k; and below the est. 193k, from 29 economists surveyed.

Of course it wasn’t just sellsides who were wrong: NFP has now printed below ADP for 11 months.

asd

Not helping the huge December miss were prior month revisions, with the change in total payrolls for October revised down from +244,000 to +211,000, while and the change for November was revised up from +228,000 to +252,000. Net, revised gains in October and November combined were 9,000 less than previously reportedAfter revisions, job gains have averaged 204,000 over the last 3 months.

Away from the establishment survey, the change in household employment was 104k vs prior 71k.

Elsewhere, the Dec. unemployment rate came in as expected, at 4.1%, same as November, the lowest in 17 years, while U6 unemployment rose a fraction to 8.1% from 8.0%.

asd

The labor force participation rate 62.7% vs prior 62.7%

In qualitative terms, average weekly hours of 34.5 came in as expected, but what was perhaps most important is that average hourly earnings of 0.3% M/M and 2.5% Y/Y also came in precisely as expected, suggesting no major surprises to the Fed’s dots timetable are imminent.

asd

end

Most of the job creation came from the minimum wage sector

(courtesy zerohedge)

Where The Jobs Were In December: Who’s Hiring… And Who Isn’t

December was expected to be a weaker month than October and November, as a result of the double-whammy of the post-hurricane rebound ending and an adverse winter storm effect, but virtually nobody on Wall Street expected the 3-sigma outlier December payrolls report to be as poor as it was.

So which sectors were responsible for the sharp slowdown in the December jobs growth rate, in which only 148K jobs were added, far below November’s 252K, and the estimate of 190K?

asd

As has been the case for nearly a decade, much of the job growth in December took place among minimum-wage job categories, although, in December somewhat surprisingly, construction was the best performing category, adding some 30,000 jobs and a continuation from the strong performance last month, with most of the increase among specialty trade contractors (+24,000); at the same time, some 25,000 high-paying manufacturing jobs were also added.

At the same time the low-wage staples of leisure & hospitality and education and health both added 29K and 28K respectively. Employment in health care increased by 31,000 in December; employment continued to trend up in ambulatory health care services (+15,000) and hospitals (+12,000)

Employment in professional and business services rose by 12,000 while temp-help jobs increased by 7,000, a big jump from November’s 1,000.

That old faithful – waiters and bartenders – added a solid 25,000. Over the year, employment in food services and drinking places added 249,000 jobs, about in line with an increase of 276,000 in 2016.

But the biggest surprise of all took place in December, however, was the big drop in retail trade, which tumbled by over 20,000 jobs.

sdf

Finally, as Bloomberg shows, below are the industries with the highest and lowest rates of employment growth for the most recent month: monthly growth rates are shown for the prior year.

asd

 
 end

This is not suppose to happen:  the uSA dollar has been sinking for the past 6 months or so and yet the trade deficit spiked to a 6 year high at 50.50 billion dollars last month.

(courtesy zerohedge)

Trade Deficit Spikes To 6-Year High Despite Tumbling Dollar

Don’t show President Trump this chart…

While the equity markets are exuberant, today’s payrolls data suggests all is not awesome, and the US trade balance print is just terrible.

Despite the relative freefall in the US Dollar, the US trade deficit disappointed expectations, spiking above $50 billion.

https://www.zerohedge.com/sites/default/files/inline-images/20180105_trade.jpg

This is the biggest trade deficit since January 2012.

Imports rose 2.5% to a record $250.7b on more inbound shipments of consumer goods and industrial supplies.

Exports climbed 2.3% to all-time high of $200.2b, led by increased shipments of automobiles, consumer merchandise and capital goods including commercial aircraft.

As Bloomberg notes, the widening trade gap could be a drag on fourth-quarter economic growth, keeping gross domestic product from advancing at least 3 percent on an annualized basis for a third straight quarter. Net exports added 0.36 percentage point to the 3.2 percent gain in third-quarter GDP.

In November, the unadjusted U.S. merchandise shortfall with China climbed to the highest since September 2015, while the gap with European Union countries was the largest in a year

Perhaps worse still, ex-Petroleum, this was the biggest trade deficit in US history…

https://www.zerohedge.com/sites/default/files/inline-images/20180105_trade1.jpg

end

The second  report to confirm yesterday’s Markit service sector is the USA Services Report (ISM).

It dropped to a low of 55.9 from an expected 57.6.  ISM manufacturing rose

(courtesy zerohedge)

US Services Sector Slumps As New Orders Crash Most Since Lehman

Confirming the mixed picture from Markit (Manufacturing PMI up, Services PMI down), ISM Services printed a disappointing 55.9 (57.6 exp), dropping to a 4-month low (as ISM manufacturing rises).

https://www.zerohedge.com/sites/default/files/inline-images/20180105_ism.jpg

Perhaps most notably, New Orders have utterly collapsed in the last 2 months post-Hurricanes…

https://www.zerohedge.com/sites/default/files/inline-images/20180105_ism1.jpg

Additionally, Business Activity fell, as did backlogs…but there is quite a difference between manufacturing and services surveys…

https://www.zerohedge.com/sites/default/files/inline-images/20171225_eur.png

Respondents remain mixed:

Many suppliers are proposing price increases, but few are being implemented. Increases in volume and efficiencies seem to be outperforming commodity pricing.” (Accommodation & Food Services)

December is slowing, as is seasonally expected after a strong fall. Business in general is strong [and] within the normal pattern of seasonal fluctuation.” (Management of Companies & Support Services)

“Lumber prices are increasing due to product [being] damaged in the recent wildfires. Duties on steel from Vietnam is expected to cause an increase in steel prices. Ongoing shortages in construction related [to] labor continue to be a problem.” (Construction)

“Ending the year with profits and business levels on track. 2018 is projected to be as productive with an optimistic outlook.” (Finance & Insurance)
“IV solutions are still on national manufacturer back order. Hospital gauze back orders are also causing issues in the industry.” (Health Care & Social Assistance)

We are seeing a resurgence in the business activity of our oil and gas customers, in a positive direction that is impacting our sales.” (Other Services)

end

SWAMP STORIES

First, it was the IRS that started an investigation into the Clinton Foundation.  Now the FBI is doing a parallel investigation

(courtesy zerohedge)

FBI Launches New Investigation Into The Clinton Foundation

Exactly two weeks after we reported that Attorney General Jeff Sessions instructed DOJ prosecutors to dig into the FBI’s handling of the Uranium One investigation, we learn that the FBI has opened a new investigation of the Clinton Foundation launched by the DOJ – spearheaded by its Little Rock, Arkansas field office, according to John Solomon of The Hill.

aa
FBI Offices, Little Rock, Arkansas

The probe will focus on pay-for-play schemes and tax code violations, according to law enforcement officials and a witness who wishes to remain anonymous.

The officials, who spoke only on condition of anonymity, said the probe is examining whether the Clintons promised or performed any policy favors in return for largesse to their charitable efforts or whether donors made commitments of donations in hopes of securing government outcomes.

The probe may also examine whether any tax-exempt assets were converted for personal or political use and whether the Foundation complied with applicable tax laws, the officials said. –The Hill

The witness who was interviewed by Little Rock FBI agents said that questions focused on “government decisions and discussions of donations to Clinton entities during the time Hillary Clinton led President Obama’s State Department,” and that the agents were “extremely professional and unquestionably thorough.”

Also of note, as tweeted by WikiLeaks and reported by the Dallas Observerthe Clinton Foundation has been under investigation by the IRS since July, 2016 after 64 GOP members of congress received letters urging them to push for an investigation. The investigation is being handled by their Dallas office – far away from Washington insiders.

as
Dallas IRS office

The Earle Cabell Federal Building in downtown Dallas is an all purpose office complex, a bastion of federal bureaucracy located at 1100 Commerce St. Most people come for a passport or to get business done in front of a federal judge. But inside, a quiet review is underway that has direct ties to the raging presidential election: The local branch of the IRS’ Tax Exempt and Government Entities Division is reviewing the tax status of the Bill, Hillary and Chelsea Clinton Foundation.

A spokesman for both Hillary Clinton and the Clinton Foundation did not return The Hill‘s calls or emails seeking comments, however they have previously maintained that the Clintons never traded government policy decisions for donations – calling recent focus on the issue a “conservative distraction” from President Trump’s Russia probe.

Of primary interest to the FBI is likely the Uranium One deal, which would 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 scheme allowed Russia to buy its way into the U.S. atomic energy business using the same Clinton Foundation pay-for-play relationship used by 16 countries, including Saudi Arabia – which received a 143% increase in weapons sales over the previous administration after donating to the foundation.

A brief timeline of the Uranium One deal:

  • Between 2008 – 2010, parties involved with Uranium One donated $145 Million to the Clinton Foundation. You can read more about the parties here.
  • June 2009, Russian State Nuclear Agency Rosatom (through a subsidiary) takes a 17% stake in Uranium One.
  • June 2010, Rosatom takes majority (51%) ownership of Uranium One, granting the Kremlin control over 20 percent of U.S. uranium – which Hillary Clinton’s State Department signed off on. The FBI uncovers massive bribery scheme before the Committee on Foreign Investment in the United States (CFIUS) approves deal.
  • June 29th, 2010, Bill Clinton meets with Vladimir Putin at his home in Russia. Later that day Clinton earns $500,000 for a Moscow speech to Kremlin-linked investment bank Renaissance Capital, which assigned a “buy” rating to Uranium One stock.
  • January 2013,  Rosatom State Nuclear Agency acquires the remainder of Uranium one and takes it private.

Also of interest in relation to the Uranium One deal is the fact that weeks after the FBI probe into Hillary Clinton’s email began, the FBI issued notices to every agency in the CFIUS to preserve recordsas discovered by Twitter researcher Katica while looking at FOIA-requested documents.

a

The agencies which received the request included the Nuclear Regulatory Commission, the U.S. Dept. of Treasury, the Office of Director of National Intelligence (ODNI James Clapper), The National Counter Terrorism Center, and the U.S. Department of Energy (DOE).

Five days after the initial request, the same FBI agent sent another round of notifications to the same agencies, adding the National Security Agency (NSA) and the U.S. Secret Service (USSS). The next day, September 3rd, 2015, three more agencies were added to the preservation request: The CIA, the Defense Intelligence Agency (DIA) and the Department of Defense (DOD)

At this point, every single member of the Committee on Foreign Investment in the United States (CFIUS) which signed off on the Uranium One deal was served with a notice to preserve records.

* * *

Another report by The Hill from November reveals that an undercover FBI informant in the Russian nuclear industry who was made to sign an “illegal NDA” by former AG Loretta Lynch, claims to have video evidence showing Russian agents with briefcases full of bribe money related to the controversial Uranium One deal – according to The Hill investigative journalist John Solomon and Circa‘s Sara Carter.

The informant, whose identity was revealed by Reuters as William D. Campbell, will testify before congress next week after the NDA which carried the threat of prison time was lifted. Campbell, originally misidentifed by Reuters as a lobbyist is actually a nuclear industry consultant who is currently battling cancer.

As previously reported, Campbell was deeply embedded in the Russian nuclear industry where he gathered extensive evidence of a racketeering scheme involving bribes and kickbacks.

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

Campbell’s attorney, former Regan Justice Department official Victoria Toensing, previously told Fox Business host Lou Dobbs “He can tell what all the Russians were talking about during the time that all these bribery payments were made.

WikiLeaks also revealed that the house of Saud heavily contributed to the Clinton Foundation, and reports surfaced that they funded 20% of Clinton’s campaign.

a

Indeed, it appears that the Saudis – the old “pre-crackdown” Saudis of course, who wouldn’t let women drive cars, were hoping for a significant return on their investment under a Hillary Clinton White House with John Podesta ostensibly in the Secretary of State role – similar to the 143% increase in weapons sales granted to the Kingdom and other Clinton-foundation friendly governments while Hillary Clinton was Secretary of State.

As reported by International Business Times

The Clinton-led State Department also authorized $151 billion of separate Pentagon-brokered deals for 16 of the countries that donated to the Clinton Foundation, resulting in a 143 percent increase in completed sales to those nations over the same time frame during the Bush administration.

It’s clear they had a lot riding on Hillary, some say in the hopes of co-opting the US military into an intervention in Syria to topple President Bashar al-Assad. The plan was regime change – with the goal of installing yet another Western friendly puppet government which would rubber-stamp a lucrative Saudi/Qatar pipeline through the country, exiting into the Mediterranean through Turkey – as opposed to a competing Russian / Iranian / Syrian pipeline.

a

Moreover, WikiLeaks exposed the fact that Saudi Arabia and Qatar funded ISIS – which then invaded Syria in an effort to co-opt the Arab spring and topple Assad. Recall that Hillary’s plan was to join ISIS in this fight, starting with the institution of a “no fly” zone which would have put the United States in direct conflict with Russia.

There was also, of course, the $1 million check Qatar gave to Bill Clinton on his birthday, as disclosed by WikiLeaks, in which Amitabh Desai, the Clinton Foundation’s director of foreign policy, writes to senior Clinton Foundation officials explaining the “summary of key points” from his meetings with the “Ambassadors from Qatar, Brazil, Peru, Malawi, and Rwanda, in Washington, DC.”

Describing his meeting with the ambassador of Qatar, Desai wrote, “Would like to see WJC [William Jefferson Clinton] ‘for five minutes’ in NYC, to present $1 million check that Qatar promised for WJC’s birthday in 2011.”

It gradually becomes clear that Hillary Clinton was set to use United States military assets at the behest of Saudi Arabia – first for regime change in Syria, and then in Saudi Arabia’s confict with Yemen as the next logical target. It also emerged that Hillary’s right hand woman Huma Abedin has had alleged ties to the Muslim Brotherhood which still haven’t been investigated. John McCain, interestingly enough, chastised Rep. Michele Bachman (R-MN) for pointing this out. In addition, a former Muslim Brotherhood member turned peace activist, Walid Shoebat said in an interview with Front Page Magazine:

The Abedins for decades were actually serving a foreign entity, the government of Saudi Arabia’s Ministry of Islamic Affairs, and not American Democracy as President Obama stated. -FrontPage

With all that said, and there is much more (to scrape the surface read “Clinton Foundation Is Charity Fraud Of Epic Proportions”, Analyst Charges In Stunning Takedown“, it appears that the FBI should have its hands full re-investigating the Clinton Foundation. Perhaps Attorney General Sessions will even ensure that Clinton loyalists within the organization aren’t responsible for things such as; reaching conclusions, recommending charges, closing investigations and changing language which would exonerate otherwise very illegal behavior.

 end
The feud between Bannon and Trump escalates:
(courtesy zerohedge)

Donald Trump Blasts “Sloppy Steve” Bannon As Feud Escalates

Just before midnight on Thursday, as residents of the battered eastern US were heading to bad after a long day of coping with the bomb cyclone, President Donald Trump was awake and apparently still fuming over the excerpts from Michael Wolff’s “Fire And Fury: Inside Trump’s White House”.

And as Trump often does when he’s frustrated, he decided to coin a new nickname for his erstwhile adviser and political ally, Steve Bannon – the source of many of the book’s most jaw-dropping claims. Playing on Bannon’s famously unkempt appearance, Trump labeled the Breitbart News chief “Sloppy Steve.”

I authorized Zero access to White House (actually turned him down many times) for author of phony book! I never spoke to him for book. Full of lies, misrepresentations and sources that don’t exist. Look at this guy’s past and watch what happens to him and Sloppy Steve!

Trump’s lawyers  slapped Bannon with a cease & desist letter on Wednesday. Shortly afterward, Trump pointed out Bannon’s declaration on Breitbart radio the night before, where the anti-establishment Republican called the president “a great man” and said he still supported him.

Bannon

“Looks like he’s changed his tune,” Trump told the reporters. Trump’s legal team is also racing to stop the publication of Wolff’s new book, which was moved ahead to Friday and is reportedly already selling out at many book stores. Wolff cheekily thanked the president for what is probably the greatest marketing push an author could ask for (“buy the book the White House doesn’t want you to read!”)

Twitter unsurprisingly embraced Trump’s latest nickname:

Trump nicknames, ranked (best to worst):
Lyin’ Ted
Rocket Man
Little Rocket Man
Little Marco
Sloppy Steve
Crooked Hillary
Sleepy Eyes Chuck Todd
Cryin’ Chuck Schumer
Low Energy Jeb
Failing New York Times
Psycho Joe
Liddle Bob Corker
Pocahontas

Meanwhile, Bannon’s former political allies are rapidly trying to distance themselves from the renegade pol.The New York Times reported that the Mercer family has publicly denounced Bannon after being infuriated by the claim, included in the book, that they would back him if he decided to run for president in 2020.

CNN  reported that there’s been “a hard push” to convince Breitbart CEO Larry Solov and Susie Breitbart to fire Bannon.

That’s quite the fall from just a year ago when, shortly after the inauguration, Trump granted Bannon’s request to be included on the National Security Council.

end

FBI chief Freedom of Information Officer now states that every single Comey memo was classified

(courtesy zerohedge)

FBI Chief FOIA Officer: “Every Single Memo Comey Leaked Was Classified”

As James Comey trots around the country on his book-selling tour, tweeting bible quotes and nature scenes, a less serene series of events is playing out in Washington D.C. which suggests the former FBI Director may be in trouble over the memos he leaked to Columbia law professor Daniel Richman, allegedly detailing conversations between Comey and President Trump.

a
James Comey, Daniel Richman

While Richman told CNN “No memo was given to me that was marked ‘classified,’ and James Comey told Congressional investigators he tried to “write it in such a way that I don’t include anything that would trigger a classification,” it appears the FBI’s chief FOIA officer disagrees.

While we previously reported that Senator Chuck Grassley (R-IA) said four of the 7 Comey memos he reviewed were “marked classified” at the “Secret” or “Confidential” level – tonight we find out that every single Comey memo was classified at the time, per Judicial Watch director of investigations Chris Farrell – who has a signed declaration from the FBI’s chief FOIA officer to that effect:

We have a sworn declaration from David Hardy who is the chief FOIA officer of the FBI that we obtained just in the last few days, and in that sworn declaration, Mr. Hardy says that all of Comey’s memos – all of them, were classified at the time they were written, and they remain classified. Chris Farrell, Judicial Watch

Therefore, Farrell points out, Comey mishandled national defense information when he “knowingly and willfully” leaked them to his friend at Columbia University.

It’s also mishandling of national defense information, which is a crime. So it’s clear that Mr. Comey not only authored those documents, but then knowingly and willfully leaked them to persons unauthorized, which is in and of itself a national security crime. Mr. Comey should have been read his rights back on June 8th when he testified before the Senate.

In closing, Farrell tells Dobbs “Recently retired and active duty FBI agents have told me – and it’s several of them, they consider Comey to be a dirty cop.”

Here’s hoping 2018 brings more ethical leadership, focused on the truth and lasting values. Happy New Year, everybody.

What was that about “more ethical leadership” Jim?

end

Judge in the Fusion GPS rules for the plaintiffs that they must now hand over all bank records.  They lost on all 4 counts.  Now we get to see who financed the  bogus report

(courtesy zerohedge)

Judge Rules Fusion GPS Must Turn Over Bank Records

Wheels appear to be in motion across D.C. on several fronts.

  • The DOJ is “taking a fresh look” into the Hillary Clinton email ‘matter.’ 
  • The FBI has launched a new investigation into the Clinton Foundation the day after the Clinton’s Chappaqua property catches fire.
  • Former FBI Director James Comey’s full Clinton memo was released, revealing felony evidence of changes which “decriminalized” Hillary Clinton’s behavior. Oh, and every one of the memos he leaked to his Cornell professor buddy was classifiedper a sworn statement by the FBI’s “chief FOIA officer” in a sworn declaration obtained by Judicial Watch.
  • The House Intelligence Committee will be granted access to “all remaining investigative documents,” unredacted, along with all witnesses sought per a deal reached between Deputy Attorney General Rod Rosenstein and Nunes.

The letter, from Nunes to Rosenstein, summarizes an “agreement” reached on a phone call Wednesday evening and also says key FBI and Justice Department witnesses in the probe will be provided for interviews later this month.

The agreement comes after the DOJ and FBI faced a Wednesday deadline to comply, under the threat of new subpoenas and even contempt citations. Under deadline pressure, FBI Director Christopher Wray and Rosenstein met Wednesday with House Speaker Paul Ryan, R-Wis., to discuss the demands from the intelligence committee. –Fox News

And now, days after Fusion GPS penned a vigorous self-defense in the New York Times, a Federal Judge struck has down a request by Fusion to block the House Intelligence Committee from obtaining complete banking records in relation to their activities during 2016. Fusion sought to invalidate a subpoena issued by Committee chairman Devin Nunes (R-CA), which they tried to claim was issued illegally as well as a violation of the 1st Amendment. U.S. District Court Judge Richard Leon struck down all four of Fusion’s request in his order, which is a great read.

aa
Federal District Court Judge Richard J. Leon

Didn’t Fusion GPS’s founders just write an op-ed about how transparent they are? https://twitter.com/PoliticalShort/status/949091925340106763 

A few highlights from the order:

Judge Leon addressed each aspect of Fusion’s request and why he so disagreed, which is why it takes Judges forever to write these things:

1. Fusion asserted that Nunes went rogue and issued the subpoena by himself, “pursuant to no resolution” by the committee, and he recused himself when he had Rep. Mike Conway temporarily take charge of the investigation, therefore Nunes had no authority to request Fusion GPS bank records. 

Judge Leon shut that down immediately:

Nowhere in this press release did Chairman Nunes “recuse” himself” from the Russia investigation. Instead, he simply designated another Committee member to take charge of the investigation, as permitted by Committee Rules.

2. Fusion then requested that Judge Leon narrow the scope of the release to exclude 10 law firms on the grounds that  “[n]one of the law firms about which Intervenor seeks information (other than Perkins Coie and Baker Hostetler) contracted with Fusion GPS to perform work related to Russia or Donald Trump, in any way.

Fusion also alleges that transactions with certain media companies, journalists, and businesses are “not pertinent.”

Judge Leon responds, telling Fusion that the mere fact that two law firms paid Fusion GPS for work related to Trump provides a “reasonable basis to believe that Fusion’s transactions with other law firms during the same time frame may reveal similarly relevant information,” adding “The Committee also has intelligence suggesting that Fusion directed Steele to meet with at least five major media outlets to discuss his work on the Trump Dossier. It is thus reasonable for the Committee to pursue records containing Fusion’s transactions with various media companies and journalists to determine whether they, too, had involvement with the Trump Dossier or with Russian active measures.” 

the Committee possesses intelligence that links these businesses to Russia and Russian operatives, and thus the transactions between Fusion and these businesses could potentially enable the Committee to investigate the nature of these relationships.” -Judge Leon

3. Next, Fusion tried to suggest that if their bank hands over their records, it would infringe on Fusion’s first amendment rights to engage in free political speech, free political activity, and free association – as it would reveal the identity of its clients, and thus would hinder them from contracting anonymously with Fusion in the future. 

In other words: our other clients are going to be really pissed and we’ll lose business because of it.

Judge Leon responds: “Unfortunately for the plaintiff, I cannot agree” – on the basis that Fusion’s commercial relationship with its clients does not provide Fusion with “some special First Amendment protection from subpoenas,” since it would allow “any entity that provides goods and services to a customer who engages in political activity to resist a subpoena on the ground that its client engages in political speech.”

Surely, to recase a line from the great Justice Robert H. Jackson, the First Amendment is not a secrecy pact! –Judge Leon

4. Lastly, Fusion tried to argue that turning bank records over to Congress would violate 12 U.S. Code § 3401 – Right to Financial Privacy statute which “prohibits banks from releasing customer records to a Government authority,” along with “nonaffiliated third party” personal information.

Leon responds: “Ultimately, I find both of plaintiff’s arguments to be without merit. How so?”

First, because Fusion “has no rights under the RFPA because it is not a “person” who may qualify as a “customer” for the purposes of that statute, adding “Unfortunately for the plaintiff, the text of the statute equally forecloses Fusion’s claim of rights.” under the nonaffiliated third party statute.

* * *

In conclusion, Judge Leon rules that the Devin Nunes’ subpoena “was issued pursuant to a constitutionally authorized investigation by a Committee of the U.S. House of Representatives with jurisdiction over intelligence and intelligence-related activities — activities designed to protect us from potential cyber-attacks now and in the future,” adding “Thus, because I find all of Fusion’s objections to the Subpoena to be unavailing, Fusion cannot satisfy the first factor of its burden for obtaining a preliminary injunction – a likelihood of success on the merits – and I need go no further. 

“Plaintiff’s motion must therefore be DENIED.

end
Now Nunes demands the remaining 9500 Strzok email texts and they will be turned over according to Rod Rosenstein.  Also Nunes expands the investigation of the Russian probe
(courtesy zerohedge)

Devin Nunes Demands Remaining 9,500 Strzok Text Messages, Expands Investigation Of Russia Probe

Representative Devin Nunes (R-Ca), chair of the House Intelligence Committee, is expanding his committee’s investigation into the FBI and DOJ’s handling of an ongoing probe into alleged collusion between the Trump campaign and Russia, according to a letter  sent yesterday to Deputy Attorney General Rod Rosenstein.

According to the letter, Rosenstein has finally agreed to comply with a subpoena issued by the House Intelligence Committee last August and produce fully unredacted records of conversations that could shed light on accusations the FBI pursued the investigation in a partisan and unfair manner.

As agreed, designated Committee investigators and staff will be provided access to all remaining investigative documents, in unredacted form, for review at DOJ on Friday, January 5, 2018. The documents to be reviewed will include all FBI Form FD-I 023s and all remaining FBI Form FD-302s responsive to the Committee’s August 24, 2017 subpoenas. The only agreed-upon exception pertains to a single FD-302, which, due to national security interests, will be shown separately by Director Wray to myself and my senior investigators during the week of January 8,
2018.

You further confirmed that there are no other extant investigative documents that relate to the Committee’s investigations into (a) Russian involvement in the 2016 Presidential election or (b) DOJ/FBI’s related actions during this time period. This includes FD-302s, FD-1023s, and any other investigatory documents germane to the Committee’s investigations, regardless of form and/or title. If, somehow, “new” or “other” responsive documents are discovered, as discussed, you will notify me immediately and allow my senior investigators to review them shortly thereafter.

Nunes

Moreover, Nunes has demanded an all-star lineup of witness interviews for the month of January, including FBI Supervisory Special Agent Peter Strzok and his mistress FBI Attorney Lisa Page, which should provide hours of entertainment.

With respect to the witness interviews requested by the Committee, you have agreed that all such witnesses – namely, former DOJ Associate Deputy Attorney General Bruce Ohr; FBI Supervisory Special Agent Peter Strzok; former FBI General Counsel James Baker; FBI Attorney Lisa Page; FBI Attorney Sally Moyer; FBI Assistant Director Greg Brower; FBI Assistant Director Bill Priestap; and FBI Special Agent James Rybicki – will be made available for interviews to be conducted in January.

Lastly, as to the remaining approximately 9,500 text messages between FBI Supervisory Special Agent Peter Strzok and his mistress, FBI Attorney Lisa Page, it is my understanding based on your representations that another search is being conducted and all relevant messages will be provided. Accordingly, the Committee requests production of these messages by no later than close of business, Thursday, January 11, 2018. Similarly, I understand that your office is researching records related to the details of an April 2017 meeting between DOJ Attorney Andrew Weissman (now the senior attorney for Special Counsel Robert Mueller) and the media, which will also be provided to this Committee by close of business on Thursday, January 11, 2018.

Interestingly, the one key witness which seems to be missing from Nunes’ list is former Deputy FBI Director Andrew McCabe.

Of course, as you’re undoubtedly aware by now, Strzok is the same FBI agent who was removed from Special Counsel Mueller’s team after his own text messages revealed an “insurance policy,” apparently crafted in Andrew McCabe’s office, to prevent a Trump presidency.

I want to believe the path you threw out for consideration in Andy’s office – that there’s no way he [Trump] gets elected – but I’m afraid we can’t take that risk.” writes FBI counterintelligence officer Peter Strzok to FBI lawyer Lisa Page, with whom he was having an extramarital affair while spearheading both the Clinton email inquiry and the early Trump-Russia probe, adding “It’s like a life insurance policy in the unlikely event you die before you’re 40.”

Text-from Peter Strzok to Lisa Page (Andy is Andrew McCabe): “I want to believe the path u threw out 4 consideration in Andy’s office-that there’s no way he gets elected-but I’m afraid we can’t take that risk.It’s like an insurance policy in unlikely event u die be4 you’re 40”


Peter Strzok and Lisa Page

The letter is the second in an escalating effort by the House Intelligence Committee to unearth information pertaining to allegations that the Russia probe was spearheaded by anti-Trump elements in the FBI and was mishandled at various junctures.

So grab your popcorn…January is shaping up to be an interesting month…

Here is the  full letter from Nunes

end

Now GOP senators are asking for a criminal probe against the British spy who wrote Trump dossier

(courtesy zerohedge)

GOP Senators Ask For Criminal Probe Of British Spy Who Wrote “Trump Dossier”

Many details surrounding the now-infamous “Trump Dossier,” from who funded it to how exactly it made it’s way into the hands of the FBI and whether or not it was relied upon to secure FISA warrants to spy on members of Trump’s campaign, are critical to determining whether partisan politics, or fact-based investigative work, drove the DOJ’s initial efforts in its Russia probe.

Now, Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Judiciary Subcommittee on Crime and Terrorism Chairman Lindsey Graham (R-SC)  say they’ve uncovered what they believe is sufficient evidence to refer the author of the dossier, ex-MI6 spy Christopher Steele, to the Justice Department for an investigation of potential violations of 18 U.S.C. § 1001 for false statements about the distribution of claims contained in the dossier.

“I don’t take lightly making a referral for criminal investigation. But, as I would with any credible evidence of a crime unearthed in the course of our investigations, I feel obliged to pass that information along to the Justice Department for appropriate review,” Grassley said.

“Everyone needs to follow the law and be truthful in their interactions with the FBI. If the same actions have different outcomes, and those differences seem to correspond to partisan political interests, then the public will naturally suspect that law enforcement decisions are not on the up-and-up. Maybe there is some innocent explanation for the inconsistencies we have seen, but it seems unlikely. In any event, it’s up to the Justice Department to figure that out.”

“After reviewing how Mr. Steele conducted himself in distributing information contained in the dossier and how many stop signs the DOJ ignored in its use of the dossier, I believe that a special counsel needs to review this matter. The rule of Law depends on the government and all who work on its behalf playing by the rules themselves. I hope the Department of Justice will carefully review our letter and take appropriate action,” Graham said.

Steele

According to the letter, yesterday evening Grassley and Graham delivered to Senate Security a letter and classified memorandum for delivery to Deputy Attorney General Rod Rosenstein and FBI Director Christopher Wray containing information that forms the basis of their referral, which they describe as follows:

Under 18 U.S.C. § 1001, individuals are prohibited from making false statements to the federal authorities of the United States. Grassley and Graham are referring Steele for making potentially false statements about the distribution of claims from the dossier.

This referral does not pertain to the veracity of claims contained in the dossier. The referral is for further investigation only, and is not intended to be an allegation of a crime.

It is the practice of the committee to notify the Justice Department whenever it comes across what appears to be credible evidence of a criminal violation that warrants further investigation by appropriate authorities based on information from any source, public or non-public.

In the interest of transparency, the senators and committee staff are working to redact all sensitive information in the classified memorandum sent to Rosenstein and Wray. If and when that process can be lawfully and appropriately completed in consultation with the Justice Department, an unclassified version of the memorandum will be released.

Of course, the only question is whether the alleged false statements made by Steele will result in the same punishment as that bestowed upon Michael Flynn or whether there is an exemption for false statements provided they were intended to harm the current administration.

Here is the full statement by Grassley and Graham

Today, David Stockman talks about the USA war party and how it is a desperate assault on”America First”
a must read…
(courtesy David Stockman)

Unhinged – Part 2: Stockman Slams The War Party’s Desperate Assault On “America First”

Authored by David Stockman via Contra Corner blog,

Read Part 1 here

The major—perhaps only—redeeming virtue of the Donald’s ersatz campaign platform was his clear intent to seek a rapprochement with Russia, revamp America’s commitments to NATO and other cold war relics and to discard “Regime Change” as the core tenant of foreign policy in favor of an “America First” approach to domestic security and safety.

Those eminently sensible notions struck the Deep State’s raison d’etre to the quick. The fact is, there would be no justification for the $800 billion defense, intelligence and foreign aid apparatus on which the very prosperity of the Imperial City depends in the absence of a large state-based enemy; or, better still, without an imperial foreign policy that is implicitly designed to either bully or remove recalcitrant governments anywhere on the planet—-whether or not they have the intent or capacity to harm the US homeland.

And that’s not the half of it. Lurking not far below the surface of the “America First” slogan was the ghost of Senator Robert Taft’s profoundly correct understanding that free enterprise prosperity, minimal government and maximum personal liberty were incompatible with a permanent, fiscally debilitating Warfare State leviathan designed to function as the world’s boots-&-suits-on-the-ground hegemon.

Consequently, Taft strongly opposed a big peacetime navy, a large standing army with forward stationing and rapid global deployment capacities and the proliferation of foreign treaties and aid commitments. To the contrary, he reasoned that in the nuclear age a US-based bomber and missile force of unquestioned striking capacity would more than adequately protect the homeland from foreign military aggression, and at a fraction of the cost of what amounted to permanent imperial legions assigned to patrolling the better part of the planet.

Today Taft’s vision of a homeland defense would be more apt than ever. It would constitute an even cheaper and more efficacious guarantor of the safety and security of the American people than in his time because there are now no rival super-powers with the military and economic might of the Soviet Union. Moreover, missile technology has become so advanced that a relative handful of submarines and hardened domestic launch sites can deter any conceivable foreign threat, which is inherently a nuclear one.

That is, in this day and age there is absolutely no conventional military threat to the safety and security of citizens in Omaha NE, Spokane WA or Springfield MA.

That’s because there is no nation on earth that could mount a giant Naval and Air Armada sufficient to invade the American homeland. Or, if it were foolish enough to try, could it survive the guided missile blitz that would send its forces to Davy Jones’ locker long before they crossed the blue waters which surround the North American continent.

Stated differently, nuclear deterrence, the great ocean moats and a territorial military defense is all that it would take to keep America secure in today’s world. There is no need for Pax Americana, even if it could succeed, which manifestly it has not; and even if it could be afforded, which clearly it can’t be.

To be sure, the Donald is too full of egotistical bluster and too infatuated with militarist trappings to go the full Taft-isolationist route, but given a fair chance his campaign slogans might have shimmied policy in that direction. Clearly a rapprochement with Russia would have enabled a de-escalation of Washington’s imperial presence in the middle east and avoided a dangerous build-up of military tensions and expense in eastern Europe.

In any event, the Deep State was not taking any chances. Trump’s crude and bombastic articulation of the America First proposition amounted to a frontal attack on the intellectual superstructure which keeps the Fifth Fleet in the Persian Gulf, 35,000 troops in Germany, 28,000 of America’s military personal in harm’s way on the Korean peninsula, 11 carrier battle groups on the oceans, a continued expeditionary force of 100,000 troops, dependents and support personnel in Japan and military operations and economic and military aid in more than 100 other nations around the planet.

We are referring here to the utterly bogus notion that Washington represents the indispensable super-power and that American Leadership is always and everywhere the sine quo non of stability, order and peace all around the planet. Indeed, even though Trump has been totally throttled by the War Party in his discombobulated and amateurish pursuit of America First, that has not stopped its leading spokesman and institutions from lambasting him for allegedly sullying Washington’s self-assigned “leadership” role in the world.

In that respect there are few grand poobahs of the War Party who better embody the arrogant pretensions of the American Imperium than the odious president of the Council on Foreign Relations, Richard Hass. According to the latter, the trouble with Trump after one year in office is that he still doesn’t get it; he’s turned his back on the core predicate that animates the Imperial City:

“Trump is the first post-WWII president to view the burdens of world leadership as outweighing the benefits. The United States has changed from the principal preserver of order to a principal disrupter.”

Exactly what hay wagon does he think we fell off from?

How did the war on Vietnam, the First Gulf War to save the Emir of Kuwait’s oil wealth, the futile 17-year occupation of Afghanistan, the destruction of Iraq, the double-cross of Khadafy after he gave up his nukes, the obliteration of much of civil society and economic life in Syria, the US-supplied Saudi genocide in Yemen and the Washington sponsored coup and civil war on Russia’s doorstep in Ukraine, to name just a few instances of Washington’s putative “world leadership”, have anything to do with preserving “order” on the planet?

And exactly how did the “benefits” of these serial instigations of mayhem outweigh the “burdens” to America’s taxpayers—to say nothing of the terminal costs to the dead and maimed citizens in their millions who had the misfortune to be domiciled in these traumatized lands?

Likewise, have the refugees who have been flushed out of Syria, Libya, Yemen, Iraq and elsewhere in the middle east by Washington’s wars done anything for the peace and stability of Europe, where Washington’s victims have desperately fled in their millions?

Yet, there would have been no long-lasting civil war in Syria without the billions of cash and weapons supplied to the so-called rebels and the real jihadis by Washington and its Persian Gulf vassals; nor would Yemen by sinking into famine and cholera plagues without the American bombs, missiles and drone dispatched by the Saudi pilots essentially functioning as hired Pentagon mercenaries.

Indeed, the smoldering ruins of Mosul, Aleppo, Fallujah, Benghazi and lesser places in their thousands hardly speak to a beneficent hegemony. Yet had Washington never brought its fleets and occupying forces to the Middle East after 1970 and had the region not come under the heavy boot of the Central Command and Washington’s assorted proconsuls and plenipotentiaries, the plague of radical Sunni jidhadism would never have arisen, nor is it likely that the ancient rift between the Sunni and Shiite confessions of Islam would have erupted into today’s lethal conflicts.

It is well to note that before 1970, no American soldiers were killed in the middle east; after 1990 virtually all US serviceman who were killed or wounded in combat were stationed in the greater middle east.

It is also worth noting that the answer to high oil prices is high prices, not the Fifth Fleet. In fact, global oil production today has doubled since 1973 owing to price, technology and the worldwide quest for profits by state and private oil companies alike—-even as constant dollar prices per barrel stand far below the peaks reached during that decade. There never was any economic imperative whatsoever to bring the American armada into the region.

So when candidate Trump said the Iraq invasion was a stupid mistake, that Hillary’s war on Khadafy was misbegotten, that he would like to cooperate with Putin on pacifying Syria and that NATO was obsolete, he was actually calling into question the fundamental predicates of the American Imperium.

And that gets us to the Russian threat bogeyman, the War Party’s risible demonization of Vladimir Putin and the cocked-up narrative about the Kremlin’s meddling in the 2016 election.

When Trump captured the GOP nomination against all odds and expectations in the spring of 2016, the War Party went into hyper-drive. Each of these bogus themes were promoted to a fare-the-well through the MSM in order to derail his candidacy; and then, after the fact, to delegitimize and imperil his presidency.

Yet when you examine the thin gruel behind each of these memes, its is fair to say that the Donald has caused the Imperial City itself to become: Unhinged.

In the case of the election meddling meme, there are few more hypocritical instances of the cat-calling-the-kettle-black than this one. The total US intelligence community (IC) budget is upwards of $75 billion—-25% more than Russia’s entire military budget including ships, planes, tanks, ammo, fuel, rations, operations, maintenance and even spare boots—and a big part of that giant IC spend goes to, well, meddling, hacking and sabotage of foreign nations!

The Targeted Access Operations (TAO) unit inside NSA alone has a multi-billion budget which funds thousands of in-house and contractor personnel who spend day and night hacking the communications channels of virtually every government in the world, friend, foe and enemy alike. The very purpose of these intrusions is to interfere with the domestic politics and governance of most of the planet’s population, and in some cases to actually sabotage perfectly appropriate operations, such as the Natanz centrifuges in Iran which were destroyed by the Washington’s stuxnet virus.

If you are not caught up in the War party’s self-serving groupthink, of course, it seems entirely plausible that in the face of these massive Washington cyber-assaults that targeted nations might indeed seek to counterattack, as apparently the Russian security services have done. But for all the beltway bluster, what military or intelligence secrets have actually been compromised by the Russians?

In fact, none have been claimed or have been made public in recent years, and you can be sure that LeakyTown would have made it known had any material national security breaches actually happened.

So what the whole Russian meddling meme boils down to is an assertion that Kremlin operatives have been attacking America in plain sight. That is, they hacked the DNC’s gossip and intrigue-ridden computers and breached the content of Podesta’s password protected political skull-duggery. But airing intra-party skull-duggery is neither a national security matter nor does its disclosure jeopardize American democracy in the slightest.

For crying out loud, if political parties and operatives don’t want to be embarrassed owing to being hacked by commercial blackmailers, political adversaries, just plain misanthropes or foreign security services, as the case may be, they can do what every business in America is required to do. That is, purchase the requisite protective services and software on offer from the world’s $200 billion internet security business.

The very idea that these two alleged hacks amount to some grand assault on American democracy is just plain laughable; and it surely does not take a dozen congressional investigations and the rogue Mueller witch-hunt to preclude any future recurrence. The DNC can just buy some protection—–or maybe even run a level playing field during the next presidential primary.

Besides, as the Donald rightly said, any 400-pound fat guy laying in a bed in Brooklyn could have figured out “password” to gain entrance to Podesta’s computer; and if Russian operatives actually penetrated the DNC computers why weren’t they even examined by the FBI or any other IC agency?

Instead, we have only the word of the Russophobic proprietor of a cyber-security company named Crowdstrike. Need we mention that he is in the business of selling computer security services and software and promoting his apparently dubious products in a field bustling with first rate competitors?

In that context, the $50k of pre-election Facebook ads allegedly purchased by a mythical Russian troll farm are not even a bad joke. That is, not in an election that saw $6 billion of registered campaign expenditures and multiples of that by independent committees and the anti-Trump media.

At the end of the day, we are supposed to believe that a country with a puny $1.3 trillion GDP, which is just7% of the US’ $19.5 trillion GDP, and which consists largely of aged hydrocarbon provinces, endless wheat fields, modest industrial capacities and a stagnant Vodka-favoring workforce, is actually a threat to America’s security.

And we are also supposed to fear the military capacity of a country that has no blue water Navy to speak of and no conventional air-lift and air-attack capacity which could remotely threaten the New Jersey shores, and that spends less in a full year than the Pentagon consumes every 35 days.

Oh, yes, and this midget military is run with an apparent iron-hand by the Cool Hand Luke of  the modern world. Putin may well jail his adversaries in ways that offend western sensibilities, but the last thing he is going to do is commit Russian national suicide by launching a nuclear attack on America.

Yet that’s all he’s got: To wit, a non-existent military threat and a justifiable desire to protect the Russian-speaking populations on his doorstep in Crimea and the Donbas from the depredations of the Civil War that was instigated on the streets of Kiev in February 2014 by the advance guards–the CIA, NED, State Department and Washington funded NGOs—of the American Imperium.

But here’s the thing. The Dems were caught so flat-footed and befuddled by the Donald’s “impossible” win that they have succumbed to the rank anti-Russian propaganda that was fed to them by Brennan, Clapper, Comey and the rest of the Obama inner circle on the eve and aftermath of the November 8th election.

They have now turned this preposterous malarkey into a fevered witch-hunt that has made them—and most especially the MSNBC-following progressive Left—-handmaidens of the Warfare State, even as the baseless claim that Trump colluded with the Russians paralyzes the White House and blocks any movement at all toward the America First promise that flickered briefly during the Donald’s run for the Oval Office.

Needless to say, we know how this movie will end. The Donald is destined to be shown the way by his GOP Capitol Hill “friends” to his last ride on the Richard Nixon Memorial Helicopter. That is, when the polls indicate a Republican mid-term election massacre is in the making.

And that will leave the neocon War Party firmly in control of the GOP and the hysterical Russophobes on top of what was once the Peace Party in post-Vietnam America.

Throughout the length and breadth of the Imperial City, the military-industrial-intelligence-think tank-War Party complex will be laughing all the way to the bank.

It is American democracy and the disenfranchised citizens of Flyover American that will be hung out to dry. Again.

end

I will try and see you MONDAY night

HARVEY

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

%d bloggers like this: