Jan 24/USA DOLLAR TANKS ON MNUCHIN STATEMENT THAT HE WANTS A LOWER DOLLAR VALUE/USA INDEX BREAKS 90 AND ENDS AT 89.25/USA 10 YR BOND NOTE AT 2.65%/GOLD RISES $25.00 TO $1357.15/SILVER RISES 56 CENTS TO $17.50 AND BREAKS THE HUGE $17.25 RESISTANCE/MONSTROUS ISSUE IN GOLD EFPS: 12,223/HUGE SILVER EFP ISSUANCE OF 2598 CONTRACTS/HUGE 2.65 TONNES OF GOLD ADDED INTO THE GLD/NOTHING ADDED INTO THE SLV/HUGE NUMBER OF SWAMP STORIES FOR YOU TONIGHT/

 

 

GOLD: $1357.15 UP $25.00

Silver: $17.50 UP 56 cents

Closing access prices:

Gold $1359.00

silver: $17.57

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

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

SHANGHAI FIRST GOLD FIX: $1348.77 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1341.15

PREMIUM FIRST FIX: $7.62

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SECOND SHANGHAI GOLD FIX: $1358.46

NY GOLD PRICE AT THE EXACT SAME TIME: $1343.00

Premium of Shanghai 2nd fix/NY:$15.46

SHANGHAI REJECTS NY /LONDON PRICING OF GOLD

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LONDON FIRST GOLD FIX: 5:30 am est $1350.50

NY PRICING AT THE EXACT SAME TIME: $1349.80

LONDON SECOND GOLD FIX 10 AM: $1353.70

NY PRICING AT THE EXACT SAME TIME. $1355.25

For comex gold:

JANUARY/

NUMBER OF NOTICES FILED TODAY FOR JANUARY CONTRACT: 8 NOTICE(S) FOR 800 OZ.

TOTAL NOTICES SO FAR: 692 FOR 69200 OZ (2.1524 TONNES),

For silver:

jANUARY

10 NOTICE(S) FILED TODAY FOR

50,000 OZ/

Total number of notices filed so far this month: 726 for 3,630,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $10,947/OFFER $11,047  DOWN $171 (morning)

 Bitcoin: BID   $11,108/OFFER  $11,212 UP $332  (CLOSING/4 PM)

end

Let us have a look at the data for today

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In silver, the total open interest FELL BY A TINY 76 contracts from 200,061 FALLING TO 199,985 WITH YESTERDAY’S 6 CENT LOSS IN SILVER PRICING.  WE THUS  MINIMAL COMEX LIQUIDATION. HOWEVER, WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER HUGE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP ROUTE:  2598 EFP’S FOR MARCH AND ZERO FOR OTHER MONTHS  AND THUS TOTAL ISSUANCE OF 2598 CONTRACTS. HOWEVER THE MOVEMENT ACROSS TO LONDON IS NOT AS SEVERE AS IN GOLD AS THERE SEEMS TO BE  MAJOR PLAYERS WILLING TO TAKE ON THE BANKS AT THE COMEX. STILL, WITH THE TRANSFER OF 2598 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. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24 HRS IN THE ISSUING OF EFP’S.

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

37,797 CONTRACTS (FOR 17 TRADING DAYS TOTAL 37,797 CONTRACTS OR 188.98 MILLION OZ: AVERAGE PER DAY: 2223 CONTRACTS OR 11.116 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  188.98 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 26.99% OF ANNUAL GLOBAL PRODUCTION

RESULT: A TINY SIZED LOSS IN OI COMEX DESPITE THE 6 CENT LOSS IN SILVER PRICE WHICH USUALLY INDICATES ANOTHER FAILED BANKER SHORT-COVERING. WE ALSO HAD A HUGE SIZED EFP ISSUANCE OF 2598 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER . FROM THE CME DATA 2598 EFP’S WERE ISSUED FOR TODAY  FOR A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS. WE REALLY GAINED 2522 OI CONTRACTS i.e. 2598 open interest contracts headed for London (EFP’s) TOGETHER WITH A DECREASE OF 76  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE  FALL IN PRICE OF SILVER OF 6 CENTS AND A CLOSING PRICE OF $16.92 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. 0.999 BILLION TO BE EXACT or 141% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT JANUARY MONTH/ THEY FILED: 10 NOTICE(S) FOR 50,000 OZ OF SILVER

In gold, the open interest SURPRISINGLY ROSE  BY A CONSIDERABLE 9126 CONTRACTS UP TO 582,421 WITH THE GOOD SIZED RISE IN PRICE OF GOLD WITH YESTERDAY’S TRADING ($5.55). IN ANOTHER HUGE DEVELOPMENT, WE RECEIVED THE TOTAL NUMBER OF GOLD EFP’S ISSUED FOR WEDNESDAY AND IT TOTALED A HUMONGOUS SIZED  12,223 CONTRACTS OF WHICH FEBRUARY SAW 11,023 CONTRACTS ISSUED AND  APRIL SAW THE ISSUANCE OF 1200 CONTRACTS.    The new OI for the gold complex rests at 583,590. ALSO REMEMBER THAT THERE CAN BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. 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 COMEX. 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 TODAY WE HAVE A HUGE GAIN OF 21,349  CONTRACTS: 9126 OI CONTRACTS INCREASED AT THE COMEX AND A GOOD SIZED  12,223 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. EXPECT HUGE NUMBERS OF EFP’S TO BE ISSUED AS WE APPROACH FIRST DAY NOTICE IN THE GOLD FEB COMEX CONTRACT, WEDNESDAY JAN 31.2018

YESTERDAY, WE HAD 11,759 EFP’S ISSUED.

ACCUMULATION OF EFP’S/ GOLD(EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JANUARY STARTING WITH FIRST DAY NOTICE: 164,474 CONTRACTS OR 16.474 MILLION OZ OR 512.41 TONNES (17 TRADING DAYS AND THUS AVERAGING: 9674 EFP CONTRACTS PER TRADING DAY OR 967,400 OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :   SO FAR THIS MONTH IN 17 TRADING DAYS: IN  TONNES: 513 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2017, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 2200 TONNES

THUS EFP TRANSFERS REPRESENTS 474/2200 TONNES =  23.31% OF GLOBAL ANNUAL PRODUCTION SO FAR IN JANUARY ALONE.

Result: A SHOCKINGLY STRONG SIZED INCREASE IN OI AT THE COMEX WITH THE FAIR SIZED RISE IN PRICE IN GOLD TRADING ON YESTERDAY ($5.55). WE HAD ANOTHER GIGANTIC SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 12,223. 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 12,223 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 21,349 contractON THE TWO EXCHANGES:

12,223 CONTRACTS MOVE TO LONDON AND  9,126 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 70.03 TONNES).

we had: 8 notice(s) filed upon for 800 oz of gold.

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

GLD

With gold UP $25.00, we had  a huge change in gold inventory at the GLD/A DEPOSIT OF 2.65 TONNES

Inventory rests tonight: 849.32 tonnes.

SLV/ 

A BIG CHANGES IN SILVER INVENTORY AT THE SLV/A HUGE WITHDRAWAL OF 1.131 MILLION OZ FROM THE SLV INVENTORY/

INVENTORY RESTS AT 313.048 MILLION OZ/

end

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

1. Today, we had the open interest in silver FELL BY A TINY 76 contracts from 200,061 DOWN TO 199,985 (AND now A LITTLE FURTHER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) WITH  THE FALL  IN PRICE OF SILVER TO THE TUNE OF 5 CENTS WITH RESPECT TO  YESTERDAY’S TRADING.   OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER GOOD 2598 PRIVATE EFP’S FOR MARCH (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM) AND 0 EFP’S FOR ALL OTHER MONTHS .  EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON. WE HAD ZERO COMEX SILVER COMEX LIQUIDATION. IF WE TAKE THE  OI LOSS AT THE COMEX OF  76 CONTRACTS TO THE 2598 OI TRANSFERRED TO LONDON THROUGH EFP’S WE OBTAIN A BIG GAIN OF 2522 OPEN INTEREST CONTRACTS.  WE STILL HAVE A GOOD AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN JANUARY (SEE BELOW). THE NET GAIN TODAY IN OZ ON THE TWO EXCHANGES: 12.61 MILLION OZ!!!

RESULT: A SMALL SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE TINY FALL  OF 6 CENTS IN PRICE (WITH RESPECT TO YESTERDAY’S TRADING). BUT WE ALSO HAD ANOTHER STRONG 2598 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

i)Late TUESDAY night/WEDNESDAY morning: Shanghai closed UP 12.96 points or 0.37% /Hang Sang CLOSED UP 27.99 pts or 0.08% / The Nikkei closed DOWN 183.97 POINTS OR 0.76%/Australia’s all ordinaires CLOSED UP 0.29%/Chinese yuan (ONSHORE) closed  WELL UP at 6.3748/Oil UP to 64.63 dollars per barrel for WTI and 69.91 for Brent. Stocks in Europe OPENED ALL RED .   ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.2748. OFFSHORE YUAN CLOSED UP AGAINST  THE ONSHORE YUAN AT 6.3732//ONSHORE YUAN MUCH STRONGER AGAINST THE DOLLAR/OFF SHORE MUCH STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS  MUCH WEAKER AGAINST ALL MAJOR CURRENCIES. CHINA IS VERY  HAPPY TODAY.(GOOD MARKETS/WEAKER USA DOLLAR )

 

3a)THAILAND/SOUTH KOREA/NORTH KOREA

i)/North Korea/China/USA

CIA director Mike Pompeo claims that North Korea’s missile program is much more advanced than anyone thought

( zerohedge)

ii)This is not good;  North Korean officials raid homes and farms to feed its army

( Mac Slavo.SHFTplan.com)

END

 

b) REPORT ON JAPAN

 

3 c CHINA

4. EUROPEAN AFFAIRS

 

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

6 .GLOBAL ISSUES

Caterpillar is an excellent Bellwether indicator for global growth.  Today the company announced huge dealer sales, the most in 6 years.

( zerohedge)

7. OIL ISSUES

WTI tops 65 dollars for the first time since 2014 despite record production.

( zerohedge)

8. EMERGING MARKET

9. PHYSICAL MARKETS

i)The LBMA hopes that blockchain can track everybody’s gold. They are correct, it can

( LBMA/GATA)

ii)Even though China has a massive $40 trillion debt, they plan to rescue any or all big banks

( Ambrose Pritchard Evans/GATA)

iii)IMPORTANT ANNOUNCEMENT

Andrew Maguire’s new crypto currency which is fully backed by allocated gold and silver is now ready and it will without a doubt destroy all other cryptos

 

Mp3 download.

(Andrew Maguire)

iv)The Perth mint will also issue a cryptocurrency backed by gold

( GATA)

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

i)LAST NIGHT EARLY TRADING (Tuesday night)

(zerohedge)

ii)Early Wednesday morning

Trade wars are to commence as Mnuchin endorses a weaker USA currency on top of tariffs.  This accelerated the downfall on the uSA this morning
( zerohedge)

iib)The Composite USA PMI which covers both manufacturing and service tumbles to a 8 month low.  It was the service sector that had the big slump

( zerohedge)

iic)Starbucks is the latest company to announce a 250 million dollar spending program for worker benefits which include a pay boost( zero hedge)

iid)The USA seems that it is not doing as well as Europe:  Today existing home sales slumped due to record low supply

( zerohedge)

iii)The bond market is already in bear territory and this will cause a massive crash to the financial system  (as outlined by Russell Clark of Horseman Capital)
( Ray Dalio/zerohedge)

iv)Simple:  Trump to Schumer: if there is no wall, there is no DACA

( zerohedge)
 v)GE’s stock falls as they announce an SEC probe into one of their insurance companies.  They took a huge charge of 6.2 billion dollars

( zerohedge)

vi)SWAMP STORIES

a)A whistleblower has revealed to Congress that a clandestine, offsite meetings have occurred between high ranking FBI and Dept of Justice people with the sole purpose to undermine President Trump.  This was confirmed by Rep Ron Johnson of Wisconsin

( zerohedge)

 

b)A good summary so far of the massive scandal brewing at the FBI

( zerohedge)

c)Judicial Watch does what it does best:  it sues the DOJ for the text messages between our love birds
(courtesy zerohedge/Judicial watch)

 

d)a JOKE!!  it now seems that 1000’s of FBI phones were hit by the same glitch as the lost Strozok-Page texts.  Strange! nobody asks to see the physical phones and nobody has asked the carriers for any copies??

( zerohedge)

 

e)Trump would speak to Mueller under oath in the next few weeks.

( zerohedge)

Let us head over to the comex:

The total gold comex open interest SHOCKINGLY ROSE BY A HUGE 9126 CONTRACTS UP to an OI level of 582,421 DESPITE THE SMALL RISE IN THE PRICE OF GOLD ($5.55 GAIN WITH RESPECT TO YESTERDAY’S TRADING).   WE HAD SURPRISINGLY NO COMEX GOLD LIQUIDATION. HOWEVER THE CME REPORTS THAT  THE BANKERS ISSUED ANOTHER STRONG COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS. WE HAD A GOOD SIZED 11023 EFP’S ISSUED FOR FEBRUARY  AND 1200 EFP’s  FOR APRIL:  TOTAL  12,233 CONTRACTS. THE OBLIGATION STILL RESTS WITH THE BANKERS ON THESE TRANSFERS. ALSO REMEMBER THAT THERE CAN BE A DELAY OF UP TO 48 HRS AFTER LONGS GIVE UP THEIR COMEX CONTRACTS AS THEY ARE NEGOTIATING A PRIVATE EFP CONTRACT WITH THE BANKS… THE COMEX IS NOW AN ABSOLUTE FRAUD!!

ON A NET BASIS IN OPEN INTEREST WE GAINED TODAY: 21,349 OI CONTRACTS IN THAT 12,223 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED 9126 COMEX CONTRACTS. NET GAIN ON THE TWO EXCHANGES: 21,349 contracts OR 2,134,900  OZ OR 66.40 TONNES

Result: A  SURPRISING AND STRONG  INCREASE IN COMEX OPEN INTEREST DESPITE THE SMALL RISE IN YESTERDAY’S GOLD TRADING ($5.55.) WE HAD NO COMEX GOLD LIQUIDATION.  TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES: 21,349 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 159 contracts FALLING TO 26.  We had 162 notices served upon yesterday so we GAINED 3  contracts or an additional 300 oz of gold will  stand AT THE COMEX in this non active month of January AS QUEUE JUMPING RETURNS WITH A VENGEANCE.

FEBRUARY saw a LOSS of 24,785 contacts DOWN to 201,744.  March saw a GAIN of 508 contracts UP to 1313.  April saw a GAIN of 30,502 contracts UP to 257,912.

We had 8 notice(s) filed upon today for 800 oz

PRELIMINARY VOLUME TODAY ESTIMATED;  617,690

FINAL NUMBERS CONFIRMED FOR YESTERDAY:  457,325

comex gold volumes are RISING AGAIN

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And now for the wild silver comex results.

Total silver OI FELL BY A TINY 76  CONTRACTS FROM 200,061 DOWN TO 199,985 DESPITE YESTERDAY’S TINY 6 CENT FALL.  WE WERE ALSO INFORMED THAT WE HAD ANOTHER GIGANTIC SIZED 2598 EMERGENCY EFP’S FOR MARCH ISSUED BY OUR BANKERS (AND 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: 2598.   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 AS WE HAVE JUST SEEN IN GOLD TODAY. THIS PROCESS HAS JUST BEGUN IN EARNEST IN SILVER STARTING IN SEPTEMBER 2017. HOWEVER, IN GOLD, WE HAVE BEEN WITNESSING THIS FOR THE PAST 2 YEARS. NICK LAIRD WAS KIND ENOUGH TO SUPPLY US THE TOTAL FOR 2017 GOLD EFP’S AND IT WAS 6600 TONNES FOR THE ENTIRE YEAR.  WE HAD  ZERO LONG COMEX SILVER LIQUIDATION AND A HUGE SIZED RISE IN TOTAL SILVER OI. 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.  ON A NET BASIS WE GAINED 2522 SILVER OPEN INTEREST CONTRACTS:

76 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 2598 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN TWO EXCHANGES: 2522 CONTRACTS

We are now in the poor non active delivery month of January and here the OI LOST 3 contracts FALLING TO 12.  We had 9 notices served upon yesterday, so we GAINED 6 contracts or an additional 30,000 oz will stand for delivery  AT THE COMEX  AND QUEUE JUMPING CONTINUES

February saw a GAIN OF 10 OI contracts RISING TO 169. The March contract LOST 1100 contracts DOWN to 138,719.

We had 10 notice(s) filed for NIL 50,000 for the January 2018 contract for silver

INITIAL standings for JANUARY

Jan 24/2018.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
 NIL
Deposits to the Dealer Inventory in oz nil oz
Deposits to the Customer Inventory, in oz
 96,095.061 OZ
hsbc
No of oz served (contracts) today
8 notice(s)
800 OZ
No of oz to be served (notices)
18 contracts
(1800 oz)
Total monthly oz gold served (contracts) so far this month
692 notices
69200 oz
2,1524 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
we had 1 kilobar transaction/
We had 0 inventory movement at the dealer accounts
total inventory movement into the dealer accounts:  nil oz
we had 0 withdrawals into the customer account:
i
total withdrawal: NIL  oz
we had 1 customer deposit
i )Into HSBC: 96,095.061 oz
total deposits:  96,095.061 oz
we had 0 adjustments
total registered or dealer gold:  586,501.473 oz or 18.242 tonnes
total registered and eligible (customer) gold;   9,313,542.543 oz 289.69 tones

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 8 contract(s) of which 6 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account.

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To calculate the INITIAL total number of gold ounces standing for the JANUARY. contract month, we take the total number of notices filed so far for the month (692) x 100 oz or 69200 oz, to which we add the difference between the open interest for the front month of JAN. (26 contracts) minus the number of notices served upon today (8 x 100 oz per contract) equals 71,000 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 (692 x 100 oz or ounces + {(26)OI for the front month minus the number of notices served upon today (8 x 100 oz which equals 71,000 oz standing in this active delivery month of JANUARY (2.209 tonnes). THERE IS 18.245 TONNES OF REGISTERED GOLD AVAILABLE FOR DELIVERY SO FAR.

WE gained 3 CONTRACTS OR AN ADDITIONAL 300 OZ WILL STAND IN THIS NON ACTIVE DELIVERY MONTH OF JANUARY AS QUEUE JUMPING CONTINUES

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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

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 15 MONTHS 65 NET TONNES HAS LEFT THE COMEX.

end

And now for silver

AND NOW THE DECEMBER DELIVERY MONTH

DECEMBER FINAL standings

Jan 24 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
 1,190,341,081 oz
CNT
DELAWARE
HSBC
Deposits to the Dealer Inventory
nil
oz
Deposits to the Customer Inventory
 598,818.830 oz
JPMORGAN
No of oz served today (contracts)
10
CONTRACT(S)
(50,000 OZ)
No of oz to be served (notices)
2 contracts
(10,000 oz)
Total monthly oz silver served (contracts) 726 contracts

(3,630,000 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

we had no inventory movement at the dealer side of things

total inventory movement dealer: nil oz

we had 1 inventory deposits into the customer account

i) JPMorgan continues to add silver to its inventory:

Deposit:  598,818.830  oz

total inventory deposits: 598,818.830 oz

we had 3 withdrawals from the customer account;

i) Out of CNT: 599,110.110 oz

ii) Out of Delaware:  4099.071  oz

iii) Out of HSBC; 587,131.900 oz

total withdrawals;  1,190,341.081 oz

we had 0 adjustment

total dealer silver:  45.461 million

total dealer + customer silver:  245.948 million oz

The total number of notices filed today for the JANUARY. contract month is represented by 10 contract(s) FOR 50,000 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 726 x 5,000 oz = 3,630,000 oz to which we add the difference between the open interest for the front month of JAN. (12) and the number of notices served upon today (10 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JANUARY contract month: 726(notices served so far)x 5000 oz + OI for front month of JANUARY(12) -number of notices served upon today (10)x 5000 oz equals 3,640,000 oz of silver standing for the JANUARY contract month. This is VERY GOOD for this NONACTIVE delivery month of JANUARY.  WE GAINED 6 CONTRACTS OR AN ADDITIONAL 30,000  OZ WILL  STAND FOR DELIVERY IN THIS NON ACTIVE DELIVERY MONTH OF JANUARY AS QUEUE JUMPING CONTINUES AS WE PROCEED TO MONTH’S END.

ON FIRST DAY NOTICE FOR THE JANUARY 2017 CONTRACT WE HAD 3.790 MILLION OZ STAND.

THE FINAL STANDING: 3,730 MILLION OZ

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I almost fell from my chair:  we received volumes at the comex and they were on time

ESTIMATED VOLUME FOR TODAY: 116,815

CONFIRMED VOLUME FOR YESTERDAY:   95,499 CONTRACTS

YESTERDAY’S CONFIRMED VOLUME OF 95,499 CONTRACTS EQUATES TO  477 MILLION OZ OR 68.2% 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.

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 

1. Sprott silver fund (PSLV): NAV FALLS TO -2.29% (Jan 23/2018)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.36% to NAV (Jan 23/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -2.29%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.36%/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)

3.SPROTT CEF.A FUND (FORMERLY CENTRAL FUND OF CANADA): NAV FALLS TO 2.85%: NAV 13.96/TRADING 13.56//DISCOUNT 2.89%

 

END

And now the Gold inventory at the GLD/

Jan 24/A HUGE DEPOSIT OF 2.65 TONNES OF GOLD INTO GLD/INVENTORY RESTS AT 849.32 TONNES

Jan 23/NO CHANGE IN GOLD INVENTORY DESPITE GOLD’S RISE/INVENTORY RESTS AT 846.67 TONNES

Jan 22/a huge deposit of 5.71 tonnes of gold despite a drop in price/inventory rests at 846.67 tonnes. In 3 trading days, the GLD has added 17.71 tonnes/the bankers are now in trouble!!

Jan 19/no change in gold inventory at the GLD/Inventory rests at 840.76 tonnes

Jan 18/SHOCKINGLY A HUGE DEPOSIT OF 11.80 TONNES WITH GOLD DOWN ALMOST $12.00/INVENTORY RESTS AT 840.76

Jan 17/no changes in gold inventory at the GLD/inventory rests at 828.96 tonnes

Jan 16/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 828.96 TONNES

Jan 12/no changes in inventory at the GLD despite the rise in gold price/inventory rests at 828.96 tonnes

Jan 11/ANOTHER IDENTICAL WITHDRAWAL OF 2.95 TONNES FROM THE GLD INVENTORY/INVENTORY RESTS AT 828.96 TONNES

Jan 10/with gold up today, a strange withdrawal of 2.95 tonnes/inventory rests at 831.91 tonnes

Jan 9/no changes in gold inventory at the GLD/Inventory rests at 834.88 tonnes

Jan 8/with gold falling by a tiny $1.40 and this being after 12 consecutive gains, today they announce another 1.44 tonnes of gold withdrawal from 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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
Jan 24/2018/ Inventory rests tonight at 849.32 tonnes

*IN LAST 314 TRADING DAYS: 91.83 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 248 TRADING DAYS: A NET 65.48 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.

end

 

 

Now the SLV Inventory

jan 24/NO CHANGE IN SILVER INVENTORY DESPITE THE GOOD ADVANCE IN PRICE/INVENTORY RESTS AT 313.048 MILLION OZ/

Jan 23/ANOTHER HUGE WITHDRAWAL OF 1.131 MILLION OZ OF SILVER DESPITE THE TINY LOSS/THE CROOKS ARE USING THE INVENTORY TO RAID ON SILVER.

JAN 22.2018/with silver down by 5 cents/ the crooks at the SLV liquidate 1.321 million oz of silver/inventory rests at 314.179 million oz/

Jan 19/ no changes in silver inventory at the SLV/inventory rests at 315.500 million oz/

jan 18/A WITHDRAWAL OF 848,000 OZ OF SILVER FROM THE SLV/INVENTORY RESTS AT 315.500 MILLION OZ/

Jan 17/no changes in silver inventory at the SLV/inventory rests at 316.348 million oz/

Jan 16/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.348  MILLION OZ

Jan 12/no changes in silver inventory at the SLV/inventory rests at 316.348 million oz/

Jan 11/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.348 MILLION OZ/

Jan 10/with silver up again, we had a huge withdrawal of 1.227 million oz from the SLV/inventory rests at 316.348 million oz

Jan 9/a withdrawal of 848,000 oz from the SLV/Inventory rests at 317.575 million oz/

jan 8/no change in silver inventory at the SLV/Inventory rests at 318.423 million oz/

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/

.

Jan 24/2017:

Inventory 313.048 million oz

end

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

+ 1.80%
12 Month MM GOFO
+ 2.16%

Major gold/silver trading /commentaries for WEDNESDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

Cyber War Coming In 2018?

– Cyber war is increasing threat – Investors are not prepared for
– Third most likely global risk in 2018 is cyber war say WEF
– “Scale and sophistication of attacks is going to grow”

– EU, US, NATO lay down ground rules for offensive cyber war
– Ireland is viable target for attackers but is ‘grossly unprepared for cyber war’
– UK should expect attack that cripples infrastructure within 2 years
– Trump administration may use nuclear weapons in response to cyber attacks

– Cyber war designed to have a economic impact on countries
– Invest in physical assets as well as digital assets & currencies
– Avoid ETF and digital gold and own physical gold that is allocated and segregated

Editor: Mark O’Byrne

Cyber-attacks are the third most likely global risk for 2018, behind extreme weather conditions and natural disasters, according to a new report by the World Economic Forum.

Estimated to cost over $1 trillion per year, cyber-attacks are now more expensive than natural disasters which in 2017 brought in a bill of $300 billion.

“We are still under resourced in the amount of effort put into trying to mitigate this risk…Cyber is at or above the scale of natural catastrophes [in terms of financial damage caused] and yet the comparative infrastructure is much smaller in scale,” according to John Drzik of WEF report partner Marsh.

The World Economic Forum’s Margareta Drzeniek-Hanouz, head of economic progress, told a press conference that cyber-risks are affecting society and the economy in “new, broader ways.”

They now impact not just the corporate sector as we usually assume but also government infrastructures and the geopolitical sphere. Arguably we are also seeing them shape societies.

The report’s launch comes at a time when cyber-attack warnings are coming in thick and fast. Governments have been warned this week that they are grossly underprepared for an attack which could see politics taken out of the electorate’s hands, billions wiped from financial markets and chaos generally created between otherwise peaceful nations.

The average citizen and investor is only vaguely aware of these risks and has yet to “join the dots” and realise the real risks they pose to economies, financial markets and people’s online savings and investments.

This is becoming urgent and yet complacency is common place with financial media focus on soaring stock markets and parabolic crypto currencies.

Governments, financial service providers, banks, brokerages are all grossly underprepared for a cyber-attack which means that your assets are vulnerable.

Governments unprepared

This week at the incredibly ‘in-touch’ event that is Davos a public-private platform in the form of a Global Centre for Cybersecurity will be launched.

“Cyber-risk is rapidly emerging as a major headache in boardrooms of all sorts of institutions around the world,” Marsh’s John Drzik told the recent  press conference. The new center for cybersecurity will, (launched with Interpol) be a “framework in which there will be a better opportunity for leaders of institutions across the public and private sectors to pool information on their intelligence and response capabilities to get ahead of the curve on a number of these risks.”

Hopefully this is not a case of too little too late.

Throughout the world, including in the United Kingdom and Ireland, experts have been very vocal about the dangers that face entire nations.

CEO of Ward Solutions, Pat Larkin has told the Irish government that they need to ‘wake-up’ to the risks facing the country’s cyber systems as they are totally under prepared for what may come.

The country is completely unprepared for the “doomsday scenario” that was seen in Estonia, in 2007, Larkin warned via the Sun.ie in the first week of this year.

Intermittent but continuous power outages, attacks on the financial infrastructure, the transport and water infrastructure — to the point where it is significantly impacting the commercial and social activities of the citizens and damages the country’s brand internationally and its economy — would be the worst case scenario.

In a warning that is relevant to all  technologically advanced and vulnerable nations, Larkin said:

“A continuous drip-feed of cyber attacks would lead to very unstable environment — a targeted attack like that on Ireland could wreak havoc on the country.

It would have a major impact on everyday life for citizens and businesses.

But it would also be catastrophic for the country’s foreign direct investment.

Major companies come to Ireland to invest for a number of reasons — the talent, tax environment — but they also come here because Ireland is a very politically stable country with good infrastructure and good services.

This is the major challenge for Ireland. Given that we are not well prepared or protected, if someone really did decide to target us they could inflict continuous long-term damage.”

Meanwhile in the UK, Ciaran Martin, head of the country’s National Cyber Security Centre, has told the Guardian:

“I think it is a matter of when, not if and we will be fortunate to come to the end of the decade without having to trigger a category one attack.”

A Category One (C1) attack can be defined as an attack that might cripple infrastructure such as energy supplies, banks (including ATMs) and the financial services sector.

Sadly it is not just country-based attacks that both Ireland, the UK and its contemporaries need to be aware of.

Ciaran Martin explains:

“What we have seen over the past year or so is a shift in North Korean attack motivation from what you might call statecraft – disrupting infrastructure – through to trying to get money through attacks on banks but also the deployment of ransomware, albeit in a way that didn’t pan out in the way the attackers wanted to.”

As well as North Korea, intrusions have been blamed on Russia, China and Iran. Some of these, Martin said, were espionage-based, scouting out vulnerabilities in infrastructure for potential future disruption.

Although the UK signed a treaty with China in 2015 not to engage in cyber-attacks for commercial gain, espionage was left out of the treaty.

“What we have seen from Russia thus far against the UK is a series of intrusions for espionage and possible pre-positioning into key sectors but in a more controlled form of attack from others,” he said.

The changing definition of war

What many nations in their cyber operations seem to be doing, including Russia and the U.S., is something that once would not have come under the definition of war. They (along with the likes of North Korea) are not using things that go ‘bang’ or cause physical harm and destruction.

Instead, they are using weapons which give them a greater advantage in this new multi-polar world which has made way for new forms of competing with one another.

In previous eras ‘war’ came about as a push for territory, now in this interconnected world, physical territory is easier to obtain once you have taken hold of the operating systems, the political system and even the minds of the electorate.

Whilst terrorism is still a priority for Western defence, a British Army Chief believes that the cyber threat, particularly from Russia is a more immediate concern.

As ever, let us hope that calm minds and the diplomats prevail and nations do not pursue the cyber war option.

Worryingly, this is not the attitude of the U.S. military and the Trump administration who, in simple terms, believe that the U.S. should use nuclear weapons in retaliation for a cyber attack.

That’s right, various drafts of the Nuclear Posture Review, as seen by the New York Times, suggest that the US would retaliate to a non-nuclear attack with nuclear weapons.

Journalists David Sanger and William Broad report in the New York Times that nuclear weapons can be used should an adversary conduct “non-nuclear strategic attacks … on U.S., allied, or partner civilian population or infrastructure.”

Quite simply, the new U.S. military doctrine seems to be threatening to nuke anyone who conducts a massively disruptive cyberattack on the power grid, water system  or financial markets of the U.S. or its friends.

Cyber-attacks increase in cost and reach

Infrastructure generally means electricity, water, roads, rails etc to the general public. However, infrastructure in today’s connected world also means cloud based services, online brokerages and bank accounts.

If you use online services, even just email or online banking, then you are exposed to the cloud.

“If an attacker took down a major cloud provider, the damages could be $50bn (£36bn) to $120bn, so something in the range of a [Hurricane] Sandy event to a Katrina event,” warns WEF report author John Drzik.

Companies are well aware of this rising cost and are feeling the pinch already. In the summer of 2017 an attack more potent than WannaCry took a hold of a number of companies’ operations. The attack, NotPetya, went after vulnerabilities in Ukrainian accounting software but ended up causing serious damage to non-Ukrainian counterparties.

Large multinationals from Mondelez to Moller-Maersk, Reckitt Benckiser to FedEx, were forced to warn shareholders that the ‘NotPetya’ cyber attack had hit their bottom line, costing each company hundreds of millions of dollars. They said that the extent of the damage to their finances was not yet known but projected that the year’s revenue would be hit.

The price of a cyber attack varies significantly depending on the kind of breach a company suffers, a company’s size, industry and country, and how well prepared it was for an attack.

Overall, the cost of cyber security for companies rose 22.7 per cent last year to an average of $11.7m, mainly due to a rising number of security breaches. The number of breaches is up an average 27.4 per cent year on year, according to the Ponemon Institute’s Cost of Cyber Crime report. The report was based on 2,182 interviews from 254 companies in seven countries.

And ultimately who bears the brunt of these increased costs? The clients. You and I. That’s not just in monetary terms, its also in terms of risk and inconvenience.

It will be our data that will be increasingly exposed, our passwords that will need to be triple-verified, or our bio-metric data insisted upon in order to access our money and our money confiscated in bail-ins should banks get into difficulties again either due to hacking and cyber war or plain old bankruptcy.

Even then, with all the complex password and finger prints in the world, we cannot be guaranteed that our financial assets are safe. Why not?

Because so many of them are digital. They’re not real. Therefore, they can be manipulated, stolen and vanished should a cyber attacker choose to do so.

Trust people not systems

“Perhaps their strongest control is the human firewall; the person in the business,” says Larkin when advising on how companies can best protect themselves and their data.

Perhaps savers and investors should take the same approach and place increasing trust in assets which are tangible and which can be verified, handled, seen and taken delivery of.

This is not the first time that we have written about the growing threat of cyber terrorism. To many it is seen as scaremongering. A bit like nuclear war it seems to be something that is so far removed from our day to day lives that we cannot relate or appreciate the level to which a cyber attack would disrupt our lives.

All we are doing is reporting on what is already out there regarding the risks of cyber war. Security and defence chiefs, global economic organisations and private companies, governments and journalists are all sitting up and paying attention to these threats. But, many are still severely behind the curve when it comes to the potential impacts on investors and savers.

This is why investors need to stay one step ahead. Luckily for them it’s not as complicated as it is for those trying to protect the infrastructure of massive companies, governments and nations.

It is simply a matter of prudent asset allocation and diversifying into physical assets that cannot be deleted or transferred at the touch of a button: physical, allocated and segregated gold and silver bullion and coins.


Recommended Reading

Massive Equifax Hack Shows Cyber Risk to Deposits and Investments

Cyber Attacks Show Vulnerability of Digital Systems and Digital Currencies

Cyber Wars Could Crash Markets and Threat To Humanity – Buffett

News and Commentary

Gold ETF Assets Climb to Highest Since 2013 (Bloomberg.com)

Gold firm as dollar sinks further (Reuters.com)

Australia Is Cashing In on Gold ETFs (Bloomberg.com)

South Korea now requires verified ID to trade cryptocurrencies (MarketWatch.com)

Gold Market Mulling Blockchain to Secure $200 Billion of Supply (Bloomberg.com)

First Cryptocurrency Freight Deal Takes Russian Wheat to Turkey (Bloomberg.com)


Source: Bloomberg

This Rare Bear Who Called the Crash Warns Housing Is Too Hot Again (Bloomberg.com)

Now that the bond bull market is over, what comes next? (MoneyWeek.com)

Look For The Stock Market To Move Higher Before Topping In Early To Mid March (TheTechnicalTraders.com)

Everyone Is Affected: Why The Implications Of The Intel “Bug” Are Staggering (ZeroHedge.com)

Why Bitcoin Is Silver’s Best Friend In 2018 (Silver-Pheonix500.com)

“America First” and China – and what’s next (StansBerryChurcHouse.com)

Gold Prices (LBMA AM)

24 Jan: USD 1,350.50, GBP 957.50 & EUR 1,093.77 per ounce
23 Jan: USD 1,337.10, GBP 959.10 & EUR 1,091.74 per ounce
22 Jan: USD 1,334.15, GBP 959.12 & EUR 1,087.87 per ounce
19 Jan: USD 1,335.80, GBP 960.17 & EUR 1,087.74 per ounce
18 Jan: USD 1,329.75, GBP 961.14 & EUR 1,088.40 per ounce
17 Jan: USD 1,337.35, GBP 969.45 & EUR 1,092.48 per ounce

Silver Prices (LBMA)

24 Jan: USD 17.19, GBP 12.16 & EUR 13.93 per ounce
23 Jan: USD 16.98, GBP 12.19 & EUR 13.87 per ounce
22 Jan: USD 17.04, GBP 12.25 & EUR 13.90 per ounce
19 Jan: USD 17.04, GBP 12.27 & EUR 13.89 per ounce
18 Jan: USD 17.09, GBP 12.31 & EUR 13.96 per ounce
17 Jan: USD 17.21, GBP 12.49 & EUR 14.10 per ounce


Recent Market Updates

– Government Shutdown Ends – Markets Ignore Looming Debt and Bond Market Threat
– Global Pension Ponzi – Carillion Collapse One Of Many To Come
– The Next Great Bull Market in Gold Has Begun – Rickards
– Gold Bullion May Have Room to Run As Chinese New Year Looms
– Digital Gold Flight To Physical Gold Coins and Bars
– Gold and Silver Bullion Are Only “Safe Investments Left” – Stockman
– Silver Prices To Surge – JP Morgan Has Acquired A “Massive Quantity of Physical Silver”
– London Property Crash Looms As Prices Drop To 2 1/2 Year Low
– Gold Bullion Up 1% In Week, Heads For 5th Weekly Gain As Bonds Sell Off
– Gold Prices Rise To $1,326/oz as China U.S. Treasury Buying Report Creates Volatility
– Gold Hits All-Time Highs Priced In Emerging Market Currencies
– World is $233 Trillion In Debt: UK Personal Debt At New Record
– 10 Reasons Why You Should Add To Your Gold Holdings

janskoyles

 

END

 

Silver breaks the resistance level of $17.25

(courtesy zerohedge)

Silver Spikes Most Since Before Election As Dollar Nosedives

After tagging its 50-DMA yesterday in an ‘odd’ plunge, Silver has screamed higher…

https://www.zerohedge.com/sites/default/files/inline-images/20180124_PM4.jpg

Pushing towards $17.50 on its best day since Nov 1st 2016.

https://www.zerohedge.com/sites/default/files/inline-images/20180124_PM1.jpg

As the dollar nosedives, gold and Bitcoin are also bid…

https://www.zerohedge.com/sites/default/files/inline-images/20180124_PM3.jpg

 

Gold continues its post-Fed-hike ramp…

https://www.zerohedge.com/sites/default/files/inline-images/20180124_PM2.jpg

END

 

Gold and silver trading today courtesy of Lawrie Williams/Sharp’s Pixley

(Lawrie Williams/Sharp’s Pixley)

 

LAWRIE WILLIAMS: Dollar drops, gold soars as U.S. starts to lose control

If gold trading this morning in Europe is anything to go by, gold is headed for US$1,350 an ounce, and not before time. But before non-U.S. gold-owning citizens get carried away with euphoria they should also be aware that the dollar index has dropped below 90 for the first time since early 2014 and the gold price in many other key currencies like the British pound (easily at its highest level against the dollar since the Brexit vote) the Swiss Franc and the Japanese yen, has actually fallen. Silver though has been somewhat left behind with the Gold:Silver Ratio at well over 78, but we do anticipate, if gold stays in the high $1,340s, or breaks through $1,350, that silver will play catch-up. It usually outperforms gold when the latter is rising sharply.

The performance of the dollar gold price level, though, does suggest that the big money into the gold futures markets, which had been successful in keeping the shiny yellow metal price down below $1,340, may be losing control. It could thus see discretion as the better part of valour and allow gold to find a new top and then work hard again to keep it there.

The key though looks to be U.S. dollar strength and it remains to be seen whether the recent decline is an engineered one in an attempt to make U.S.-manufactured goods more competitive (a policy that had had been signalled by President Trump some time back – although since denied). If so a dollar decline may have gained more steam than intended, as these things do. On the face of things the U.S. economy is in a decent growth stage, unemployment is at a low level – both things that might normally lead to dollar strength, not weakness. But perhaps massaged government-produced statistics are beginning to be doubted and the huge U.S. debt level is beginning to come home to roost as some countries seemingly (reportedly) are beginning to reduce their reliance on dollar denominated securities in their foreign exchange holdings. Perhaps the Trump Presidency is not making America great again – at least in terms of dollar dominance of global financial markets – but having the opposite effect globally.

Could all this herald the start of the much predicted crash. Stock markets appear to be stalling, bitcoin has come off nearly 50% from its peak – maybe the speculators and wealth protectors are at last beginning to see gold as an answer. It’s probably too early to tell yet, but signs don’t augur well for the seemingly unending bull markets in equities we have been seeing in the past few years. Market growth is all about confidence. Once that starts getting eroded it can turn into a desperate downwards spiral.

The problem of course for gold is that, should markets collapse, it too could suffer collateral damage as institutions and funds struggle for liquidity and have to sell good assets to stay afloat. We saw this in 2008 in the last big stock market collapse, but the comfort for gold holders, perhaps, is that gold was far faster to recover than equities and went on to perhaps its strongest bull market ever taking the price up to around $1,900-plus over three and a half years, nearly tripling its price from its October 2008 nadir.

As I write the spot gold price has indeed briefly hit the $1,350 level. Whether the U.S. market will allow it to stay there when it opens in just over 3 hours time remains to be seen.

https://www.sharpspixley.com/articles/lawrie-williams- dollar-drops-gold-soars-as-us-starts-to-lose- control_276074.html

 

The LBMA hopes that blockchain can track everybody’s gold. They are correct, it can

(courtesy LBMA/GATA)

 

LBMA hopes that blockchain can track everybody’s gold

 Section: 

Gold Market Mulling Blockchain for $200 Billion of Supply

By Eddie Van Der Walt and Ranjeetha Pakiam
Bloomberg News
Tuesday, January 23, 2018

Gold is going digital.

Blockchain technology may help keep track of the roughly $200 billion of the precious metal dug from remote mines, traded by middlemen, and melted down by recyclers that’s sold each year to buyers scattered around the world.

The London Bullion Market Association, which oversees the world’s biggest spot gold market, will seek proposals including the use of blockchain for tracing the origins of metal, partly to help prevent money laundering, terrorism funding, and conflict minerals, according to Sakhila Mirza, an executive board director.

“Blockchain cannot be ignored,” Mirza, also general counsel of the LBMA, said in an interview Monday. “Let’s understand how it can help us today, and address the risks that impact the precious metals market.” …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-01-23/gold-market-mulling-b.

 

 

END

Even though China has a massive 40 trillion debt, they plan to rescue any or all big banks

(courtesy Ambrose Pritchard Evans/GATA)

 

China plans to rescue any big bank

 Section: 

China Promises Bank Rescue in Next Crisis as Market Prophets Warn on Rising US Rates

By Ambrose Evans-Pritchard
The Telegraph, London
Tuesday, January 23, 2018

China’s financial regulator has vowed to rescue the Chinese banking system immediately to avert a banking crisis when the bubble bursts, issuing a blanket guarantee that no major institution will be allowed to fail.

Beijing says it has studied the errors that led to the Lehman crisis in the 2008 and will not allow a chain reaction to occur, even if this means paying a price in terms of lost economic growth and dynamism.

“We have too much debt in our system. If something bad happens, we have learned from the U.S. financial crisis, and we will move very swiftly to contain the risk so that panic caused by a small institution does not spread,” said Fang Xinghai, the deputy chief of the China Regulatory Securities Commission and a key architect of policy. …

… For the remainder of the report:

http://www.telegraph.co.uk/business/2018/01/23/china-promises-bank-rescu

END

 

IMPORTANT ANNOUNCEMENT

Andrew Maguire’s new crypto currency which is fully backed by allocated gold and silver is now ready and it will without a doubt destroy all other cryptos

 

(courtesy Andrew Maguire)

 

Here is an introduction to this exciting new entity:

 

from Andrew to me:

“It rough and ready but here is some more information. Given to Goldseek yesterday.

Mp3 download.

“While Eric Sprott gold backed offering is helpful as possibly is  Perth mint, our currency differs in every respect. This is an entire gold/silver backed ecosystem that already has the power of adoption by the Indonesian post office system which transacts $9.6 Billion in cross border migrant worker fees, as  well as adoption by the largest 100Million member Islamic Financial group . Attached is the press release linked here…. https://abx.com/2018/01/23/ptpos-abx/

There is much more. Every hedge fund we have discussed this with under NDA’s has committed ALL their physical holdings into this currency. The beauty of this is that bullion does not have to move out of the holder’s direct control and remains 100% allocated in their name, it simply draws a yield. This will also draw in large, institutional money to buy gold vs. treasuries etc as the yield is far greater.

The whitepaper will be released in the next 24 hours and will detail how this currency is able to do this with Zero risk.

The currency will have billions of dollars of liquidity day one. Each once transacted is 100% backed by gold and silver and the bottom up demand cannot be fought by the cartel or officials. Every aspect of our currency meets all the KYC requirements and cannot be stopped. This enormous fresh bullion demand flowing in from Asian post offices alone let alone how much of the $800 billion unbacked, volatile crypto currency market will  want to convert to a currency that has an intrinsic value and also returns them a yield. This gold and silver bullion buying is going to be conducted through our very liquid ABX vaulting network and will backwash into the LBMA forcing the offer to sell to rise.

This is  going to accelerate the inevitable gold silver market reset in a highly leveraged  ‘at the margin’ market.

This is it Chaps!”

Best

ANDREW

end

 

The Perth mint will also issue a cryptocurrency backed by gold

 

(courtesy GATA)

Gold-backed cryptocurrency planned by Perth Mint to entice investors back to metals

 Section: 

By Tara de Landgrafft
Australian Broadcasting Corp., Sydney
Tuesday, January 23, 2018

Australia’s biggest gold refiner, the Perth Mint, is developing its own cryptocurrency backed by physical precious metals.

The ambitious plan, which is subject to a confidentiality agreement, will make it easier for consumers to buy gold.

The mint also plans to make use of blockchain technology, first used as the core component of the digital currency bitcoin, where it works as a public ledger for transactions.

In the 10 years since its inception, blockchain has been used to track transactions in industries from agriculture to land registration and the music recording industry.

For the Perth Mint, the need to bring investors back to precious metals after a boom in alternative investments such as cryptocurrencies posed an opportunity, according to chief executive Richard Hayes. …

… For the remainder of the report:

http://www.abc.net.au/news/2018-01-24/cryptocurrency-backed-by-gold-bein..

END



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

 

i) Chinese yuan vs USA dollar/CLOSED UP AT 6.3748 /shanghai bourse CLOSED UP AT 12.96 POINTS 0.37% / HANG SANG CLOSED UP 27.99 POINTS OR 0.08%
2. Nikkei closed DOWN 183.37 POINTS OR 0.76% /USA: YEN FALLS TO 109.53

3. Europe stocks OPENED RED   /USA dollar index FALLS TO 89.63/Euro RISES TO 1.2334

3b Japan 10 year bond yield: RISES TO . +.084/ GOVERNMENT INTERVENTION !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 109.53/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD FINALLY IN THE POSITIVE/BANK OF JAPAN LOSING CONTROL OF THEIR YIELD CURVE AS THEY PURCHASE ALL BONDS TO GET TO ZERO RATE!!

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 64.63  and Brent: 69.91

3f Gold UP/Yen UP

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO +.584%/Italian 10 yr bond yield UP to 1.919% /SPAIN 10 YR BOND YIELD DOWN TO 1.362%

3j Greek 10 year bond yield FALLS TO : 3.72?????????????????

3k Gold at $1353.64 silver at:17.31: 6 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 3/100 in roubles/dollar) 56.35

3m oil into the 64 dollar handle for WTI and 69 handle for Brent/

3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation. This can spell financial disaster for the rest of the world/

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 109.53 DESTROYING JAPANESE CITIZENS WITH HIGHER FOOD INFLATION

30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning 0.9509 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1731 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now POSITIVE territory with the 10 year RISING to +0.584%

The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. Next step for Greece will be the recapitalization of the banks and that will be difficult.

4. USA 10 year treasury bond at 2.6410% early this morning. Thirty year rate at 2.928% /

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

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

Futures A Sea Of Green As Dollar Bloodbath Accelerates

In what has been a relatively quiet overnight session, equity futures are once again a sea of green, as the stock market meltup continues.

asd

MSCI’s world equity index hit new highs in a continuation of a long running theme but on Wednesday it was a bit more of a mixed picture.

The biggest news, as noted earlier, is that the dollar losing streak entered its third day and the sell-off accelerated to fresh three year lows, after Steven Mnuchin welcomed its recent weakness amid concerns over an increase in U.S. protectionism, saying its decline provides a boost to the American economy through trade.

“It looks as if U.S. politics are indeed affecting the currency market, especially as they start to affect trade policy,” said Marshall Gittler, chief strategist at ACLS Global, pointing to recently-introduced import tariffs as an example. Trump slapped steep tariffs on imported washing machines and solar panels on Monday, giving a boost to Whirlpool Corp and dealing a setback to the renewable energy industry in the first of several potential trade restrictions.

The dollar weakness also meant the DXY index sank below 90, with the euro and the pound hitting fresh cycle highs. The yen took out resistance at 110 per dollar on momentum selling dropping as low as 109.40, the lowest since September, even as the yield on the 10Y Treasury picked up, rising to a session high of 2.6373% from 2.16131% the day before.

“We’re looking for the dollar to continue to depreciate against most currencies,” Daniel Morris, an FX strategist with BNP Paribas, said in an interview with Bloomberg Television. “The U.S. economy has a current-account deficit and it needs to close that — one way to do that is for the dollar to depreciate.”

While the dollar fell As the euro gained the Stoxx Europe 600 Index initially fell before reversing, while emerging-market equities were little changed after eight days climbing.  The FSTE 100 (-0.5%) lags its peers amid a firmer GBP and softness in Sage shares (-5.5%) after a disappointing earnings update. Looking at the sectors, health care names outperform their peers following the latest earnings update from Novartis (+2.4%), to the downside, utility names lag after Suez Environment (-17%) issued a profit warning, IT names are also seen lower with Infineon and STMicroelectronics near the foot of the DAX and CAC respectively.

Meanwhile, the yen pushed past 110 per dollar for the first time since September due to the weak dollar, and South Africa’s rand traded below 12 per dollar for the first time since May 2015. The greenback’s slide also fed into commodities, with oil in New York holding its ground even amid signs of a possible gain in U.S. crude stockpiles. Bitcoin was trading at around $11,000.

asd

However, it was China were records continued to be broken. The Shanghai Composite rose 0.37% to 3359, a new 2 year high.

The SSE 50 index tracking 50 biggest stocks in Shanghai closed higher for the 19th consecutive day;
The Chinext index tracking mid- and small-caps surged near 2.6% to recover 1800 mark.

Meanwhile, the record streak for Chinese stocks in Hong Kong continued. The Hang Seng Index gained 0.08% to 32958, closing at a new record high for the 7th day in a row. The index broke through 33,000 mark at one point, which was the the first time ever. Meanwhile, Hang Seng’s China Enterprises index climbed near 1%, higher for the 19th consecutive day.

Also in Asia, Australia’s ASX 200 (+0.3%) and Nikkei 225 (-0.8%) were varied with Japanese exporter sentiment weighed by a firmer currency and following a miss on trade data. Japan’s exports to China and Asia hit record levels as shipments rose for a 13th straight month in December and manufacturing growth hit a four-year high in January, pointing to an economy that powered through the fourth quarter and into 2018.

  • Japanese Trade Balance Total Yen (Dec) 359.0B vs. Exp. 535.0B (Prev. 112.2B).
  • Japanese Exports YY (Dec) 9.30% vs. Exp. 10.00% (Prev. 16.20%)
  • Japanese Imports YY (Dec) 14.90% vs. Exp. 12.40% (Prev. 17.20%)

10yr JGBs were range-bound as initial support from a risk averse tone was later pared, while the BoJ were also in the JGB market for between 1yr-10yr maturities with all the amounts of its Rinban operation kept unchanged. PBoC injected CNY 110bln via 7-day, CNY 100bln via 14-day and CNY 10bln via 63-day reverse repos. PBoC set CNY mid-point at 6.3916

Over in Europe, French, German composite PMIs beat estimates supported by stronger-than forecast readings for the services sector while manufacturing missed; euro-zone composite PMI jumps to 58.6 from 58.1, exceeding the estimate of 57.9. This is Goldman’s take on the latest strong set of European PMIs:

Today’s 0.5pt rise in the flash composite manufacturing PMI reflects a shift in momentum from manufacturing to services. The manufacturing PMI fell 1.0pt to 59.6, but remains in highly expansionary territory. Within the sub-components, manufacturing output fell 0.9pt, new orders fell 2pt and employment fell 0.7pt. The services PMI accelerated, rising 1.0pt to 57.6, its highest level since 2007.

In France and Germany, the composite PMIs were roughly level, indicating that new momentum in the Euro area PMI lies outside its two largest economies. In Germany, a 1.2pt rise in the services PMI was offset by a 2.1pt decline in the manufacturing PMI (which nonetheless remains above 60.0pt). In France, a more modest decline in the manufacturing PMI (-0.7pt to 58.1) was offset by a small rise in services.

Investors will now shift attention to Thursday’s ECB meeting. The euro surged to a fresh three-year high of $1.2345 ahead of Thursday’s European Central Bank meeting, which is in focus following recent commentary that the central bank could change its policy guidance early this year.

This after the euro zone’s economy outpaced that of the U.S. in 2017 and shows further signs of strength in the New Year. In a strong sign of the positive sentiment towards the region, Spain generated over 40 billion euros of demand in a sale of 10-year government bonds in what is likely one of the largest order books in Europe ever.  Indeed, most low-rated “peripheral” euro zone government bond yields are now trading at their lowest level against benchmark German peers in years; another sign of confidence in the region.

Elsewhere, the British pound powered above $1.41, its highest since the Brexit in June 2016, aided by the weak dollar and optimism around Britain’s chances of securing a favorable Brexit deal.

The dollar’s decline has been a boon to commodities priced in the currency, with gold edging up to $1,341.81 an ounce.  Oil prices were consolidating after jumping more than 1 percent on Tuesday when Brent crude hitting $70 a barrel for the first time in a week. Brent futures was off 22 cents at $69.75, still not far off the three-year high of $70.37 reached on Jan. 15, while U.S. crude CLc1 was marginally higher 4 cents to $64.52 a barrel.

Market Snapshot

  • S&P 500 futures up 0.2% to 2,843.75
  • STOXX Europe 600 down 0.2% to 402.21
  • MSCI Asia Pacific up 0.1% to 186.55
  • MSCI Asia Pacific ex Japan up 0.1% to 608.68
  • Nikkei down 0.8% to 23,940.78
  • Topix down 0.5% to 1,901.23
  • Hang Seng Index up 0.08% to 32,958.69
  • Shanghai Composite up 0.4% to 3,559.47
  • Sensex up 0.05% to 36,156.63
  • Australia S&P/ASX 200 up 0.3% to 6,054.66
  • Kospi up 0.06% to 2,538.00
  • Brent futures down 0.3% to $69.78/bbl
  • Gold spot up 0.6% to $1,348.56
  • U.S. Dollar Index down 0.6% to 89.62
  • German 10Y yield rose 1.9 bps to 0.58%
  • Euro up 0.4% to $1.2351
  • Italian 10Y yield fell 3.3 bps to 1.622%
  • Spanish 10Y yield rose 0.3 bps to 1.361%

Top Overnight News from Bloomberg

  • The Bloomberg Dollar Spot Index extended its slide to make a fresh three-year low in early London session after U.S. Treasury Secretary Mnuchin said a weaker dollar is good for trade; Mnuchin also said he is not “particularly concerned” about the U.S. Treasury market
  • There will be more measures to come, U.S. Commerce Secretary Wilbur Ross tells reporters in Davos, Switzerland, when asked about Donald Trump’s decision to impose tariffs on solar panels and washing machines
  • China has a long history of tit-for-tat retaliation when it comes to trade disputes and may well dust off the same policy playbook in the wake of the Trump administration’s decision to slap tariffs on solar panels and washing machines
  • The Nikkei Japan PMI for manufacturers showed a preliminary reading of 54.4 for January, rising to the highest level since February 2014. New orders were at 56.0, while stocks of finished goods shrank, suggesting demand will continue to be strong in the near term
  • French, German composite PMIs beat estimates supported by stronger-than forecast readings for the services sector while manufacturing missed; euro-zone composite PMI jumps to 58.6 from 58.1, exceeding the estimate of 57.9
  • China President Economic Adviser: China to cut vehicle import tariffs; measures to open up the economy may exceed expectations
  • U.K. Nov. Average Weekly Earnings: 2.5% vs 2.5% est; Earnings Ex-bonus 2.4% vs 2.3% est.
  • European Jan P Composite PMIs: France 59.7 vs 59.2 est; Germany 58.8 vs 58.5 est; Eurozone 58.6 vs 57.9 est; Manufacturing below consensus for all three readings, partly reflected weaker growth of new export orders
  • Japan Jan P Manufacturing PMI 54.4 vs 54.0 prev; highest in four years
  • API inventories according to people familiar w/data: Crude +4.8m; Cushing -3.6m; Gasoline +4.1m; Distillates -1.3m

Asian equity markets traded mixed following an unconvincing close on Wall Street where all majors posted fresh record highs and the Nasdaq 100 outperformed as Netflix led post-earnings, although DJIA failed to hold onto gains and finished flat. ASX 200 (+0.3%) and Nikkei 225 (-0.8%) were varied with Japanese exporter sentiment weighed by a firmer currency and following a miss on trade data. Elsewhere, a cautious tone was seen in Chinese markets with the Hang Seng (-0.1%) and the Shanghai Comp. (+0.3%) choppy alongside early weakness in Shenzhen, as ChiNext heavyweight Leshi Internet & Tech Co. returned from a 9- month trading halt to hit limit down with losses of 10% at the open. Finally, 10yr JGBs were range-bound as initial support from a risk averse tone was later pared, while the BoJ were also in the JGB market for between 1yr-10yr maturities with all the amounts of its Rinban operation kept unchanged. PBoC injected CNY 110bln via 7-day, CNY 100bln via 14-day and CNY 10bln via 63-day reverse repos. PBoC set CNY mid-point at 6.3916

Top Asia News

  • Vietnam’s Biggest Stock Bourse Sees Halt Move to Second Day
  • China Pharma Tycoon Said to Mull $500 Million IPO of Clinic Arm
  • Former Chinese Web Star Plunges as Analyst Tips More Declines
  • Top Indian Steelmaker Seeks to Buy Bhushan, Monnet Assets
  • India Ending Curbs Will Allow 10 Foreign Retailers to Set Shop

European equities (Eurostoxx 50 +3.00 to 3662) trade with little in the way of firm direction in the wake of what was a relatively mixed session during Asia-Pac trade. In terms of outliers from an index perspective, the FSTE 100 (-0.5%) lags its peers amid a firmer GBP and softness in Sage shares (-5.5%) after a disappointing earnings update. Looking at the sectors, health care names outperform their peers following the latest earnings update from Novartis (+2.4%), to the downside, utility names lag after Suez Environment (-17%) issued a profit warning, IT names are also seen lower with Infineon and STMicroelectronics near the foot of the DAX and CAC respectively.

Top European News

  • Euro-Area Economy Opens 2018 With Best Growth in Almost 12 Years
  • U.K. Labor Market Shows Surprise Strength as Employment Rises
  • Spain Is Said to Pressure Abertis Investor to Accept ACS Bid
  • Glapinski: Polish Rates May Increase in 2019 on Wage Pressure

 

In FX, the USD has succumbed to yet more selling pressure, and right across the board as the Greenback’s losses stack up against G10 peers, EM currencies and commodities. The USD was dealt a further blow during European trade after US Treasury Secretary Mnuchin stated that the weaker USD is good for trade. The Index is below layered chart ‘supports’ under 90.000 and now looking at 89.370 to potentially arrest the slide before the next round number. In terms of USD pairings, the 110.00 handle vs JPY has given way and 109.56 ahead of 109.07 are now within sight, while Cable has extended post-Brexit vote highs above the 1.4000 level to around 1.4075 and briefly broke above 1.4100 following the latest jobs report with UK employment at a record high. EUR/USD has probed a bit further beyond 1.2300 to 1.2345, but displaying some caution ahead of tomorrow’s ECB meet and a Fib level at 1.2377. USD/CAD has dipped below 1.2400 amidst some constructive NAFTA noises after the 1st day of the latest round of talks and 1.2355 is the nearest support/recent low. USD/CHF has also breached its previous January base and 0.9500 is within sight, while AUD/USD and NZD/USD are both on track to post fresh year-to-date peaks.

In commodities, WTI crude futures trade in close proximity to the lows seen yesterday in the wake of the latest API inventory report which showed an unexpected build in headline crude stockpiles. Elsewhere in energy newsflow, source reports suggest that Saudi Arabia intend on keeping their Q1 crude oil production at 9.8mln bpd and exports at around 7mln bpd, despite planned domestic refinery maintenance. In metals markets, despite being relatively rangebound overnight, gold has benefitted during European trade from the broad softness in the USD. Elsewhere copper nursed some of its recent losses during Asia-Pac trade amid touted shortcovering. US API weekly crude stocks (19 Jan, w/e) +4.755M vs. Exp. -1.600M (Prev. -5.120M). Saudi Arabia intend on keeping their Q1 crude oil productions 9.8mln bpd, and exports around 7mln bpd, despite planned domestic refinery maintenance

Looking at the day ahead, the latest monthly PMIs with flash January manufacturing, services and composite prints are due for the Euro area, Germany, France and the US. In the UK, the November and December employment stats are due. Also due in the US are December existing home sales and the November FHFA house price index. General Electric and Ford Motor are due to report.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior 4.1%
  • 9am: FHFA House Price Index MoM, est. 0.5%, prior 0.5%
  • 9:45am: Markit US Manufacturing PMI, est. 55, prior 55.1; US Services PMI, est. 54.3, prior 53.7; US Composite PMI, prior 54.1
  • 10am: Existing Home Sales, est. 5.7m, prior 5.81m; MoM, est. -1.89%, prior 5.6%

DB’s Jim Reid concludes the overnight wrap

It seems it would take more than a glass of water to halt the melt up in equities at the moment although yesterday was a day of differentiation as earnings saw winners and losers. The Stoxx 600 (+0.17%) rose for the 11th out of 16 days in 2018 with the DAX (+0.71%) beating the CAC (-0.12%) on decent earnings and a strong ZEW survey (see below). Although the broad US equity indices were flat to slightly higher (S&P +0.22%, Dow -0.01%), the NASDAQ climbed +0.71% as Netflix soared +9.98% after the previous night’s subscriber numbers impressed. On the other side, the DOW was held back by P&G (-3.09%) and Johnson and Johnson (-4.26%) despite headline beats to earnings, in part as some investors were hoping for a faster turnaround at P&G and the US appeals court ruled J&J’s Remicade patent was invalid. As an aside Netflix market cap is now above $100bn after nearly doubling over the last 12 months. Talking of big round numbers, Microsoft climbed above $700bn market cap this week and Apple is also above $900bn. Could the latter soon be the first trillion dollar company since PetroChina hit that mark for one day back in the heady days of 2007?

Staying with records, the MSCI emerging markets index rose for the 8th consecutive day (+1.12%). The last time this occurred was in July 17 and the recent record to beat was back in March 15 when the index rose for 11 straight days. Similarly the HK H-shares index was up for the 18th consecutive day with a cumulative gain of 16.1% (vs. Hang Seng at 11.3%), partly aided by inflows from mainland China. This morning it is up +0.16% as we type, clinging on to  a 19th day of gains, comfortably a record run.

Elsewhere in Asia, markets are taking a breather and are modestly lower. The Kospi is broadly flat (-0.06%), while the Nikkei (-0.67%) and Hang Seng (-0.03%) are all down as we type. The January Nikkei manufacturing PMI was 54.4 (vs. 54 previous). After the bell last night, the world’s largest maker of analog chips Texas instrument fell c7% after its 1Q profit missed market expectations. This morning the main event are the European flash PMIs with the recent strength in this data setting the tone for the global equity rally over the last 18 months so always an important release.

Looking back to yesterday now, in the US, the Fed nominee Marvin Goodfriend received a bit of grilling at the Senate Panel although it is unlikely to jeopardise his confirmation prospects. Elsewhere the US Senate has voted 84-13 to confirm Jerome Powell as the Fed chair.

Now recapping other markets performance from yesterday. Government bonds were firmer with UST 10y yields down the most in c1 month (-3.7bp), partly aided by the dovish BOJ speak earlier while Bunds and Gilts also fell 0.6bp. Peripheral 10y bond yields also declined c3bp, in part as Spain’s biggest syndicated debt offering since 2014 was well received with bids c4.5x higher than the amount offered (€10bn 10-yr notes).

Turning to currencies, the US dollar index extended on its 3 year low (-0.31%), while the Euro and Sterling gained 0.30% and 0.09% respectively. In commodities, WTI oil was up 1.42% ahead of data on US crude stockpiles and Brent was back near $70/bbl again. Elsewhere, precious metals strengthened (Gold +0.55%; Silver +0.20%) but  copper fell 2.01% to a five week low due to concerns of rising inventories while other base metals were little changed (Zinc +0.02%; Aluminium -0.17%).

Away from the markets and onto US trade. China’s Ministry of Commerce noted China is “strongly” dissatisfied with the US tariffs hikes on imported solar panels and washing machines yesterday, calling them a misuse of trade measures. Back home, Senator Pat Roberts noted the President has had a “more populist view” on trade and “I do not know of a Senator in the Republican conference who has not voiced concern about our trade policy”, in part as goods assembled in the US with imported parts can create jobs in both countries too. In markets generally yesterday there was chatter as to whether this marked another small step towards a more protectionist world. Elsewhere, Mexico’s Economy Minister Guajardo said “Mexico is ready to work constructively towards getting” a good agreement on NAFTA and it could happen anywhere from March and even July when the national elections will be on.

Over in Germany, the latest Forsa poll suggests the majority of Germans (59%) support the coalition talks between the SPD and Ms Merkel’s bloc. Notably, 65% of SPD voters welcome the negotiations for a “grand coalition” and support is much higher among CDU and CSU voters (c87%).

Before we take a look at today’s calendar, we wrap up with other data releases from yesterday. In the US, the January Richmond Fed manufacturing index was below market at 14 (vs. 19). In Europe, both the Eurozone’s January ZEW survey on expectations (31.8 vs. 29 previous) and consumer confidence (1.3 vs. 0.6 expected) readings beat expectations, with the latter marking a fresh high since August 2000. In Germany, the January ZEW survey on current situations (95.2 vs. 89.6) rose to a fresh 27 year record high and the expectations index (20.4 vs. 17.7) also beat. In the UK, the public sector net borrowing was lower than expected at £2.6bln (vs. £5bln) as Britain benefited from a strong rise in value-added tax receipts and a £1.2bln credit from the EU due to 2017 budget amendments. Elsewhere, the January CBI trend total orders index was also above at 14 (vs. 12 expected) with trends selling prices higher than last month’s reading (40 vs. 23).

Looking at the day ahead, the latest monthly PMIs with flash January manufacturing, services and composite prints are due for the Euro area, Germany, France and the US. In the UK, the November and December employment stats are due. Also due in the US are December existing home sales and the November FHFA house price index. General Electric and Ford Motor are due to report.

3. ASIAN AFFAIRS

i)Late TUESDAY night/WEDNESDAY morning: Shanghai closed UP 12.96 points or 0.37% /Hang Sang CLOSED UP 27.99 pts or 0.08% / The Nikkei closed DOWN 183.97 POINTS OR 0.76%/Australia’s all ordinaires CLOSED UP 0.29%/Chinese yuan (ONSHORE) closed  WELL UP at 6.3748/Oil UP to 64.63 dollars per barrel for WTI and 69.91 for Brent. Stocks in Europe OPENED ALL RED .   ONSHORE YUAN CLOSED UP AGAINST THE DOLLAR AT 6.2748. OFFSHORE YUAN CLOSED UP AGAINST  THE ONSHORE YUAN AT 6.3732//ONSHORE YUAN MUCH STRONGER AGAINST THE DOLLAR/OFF SHORE MUCH STRONGER TO THE DOLLAR/. THE DOLLAR (INDEX) IS  MUCH WEAKER AGAINST ALL MAJOR CURRENCIES. CHINA IS VERY  HAPPY TODAY.(GOOD MARKETS/WEAKER USA DOLLAR )

3 a NORTH KOREA/USA

NORTH KOREA/SOUTH KOREA/USA

 

CIA director Mike Pompeo claims that North Korea’s missile program is much more advanced than anyone thought

 

(courtesy zerohedge)

 

CIA Director Says North Korea’s Missile Program Is More Advanced Than We Thought

The worst-case scenario for North Korea’s missile program is about to become a reality.

During an interview with CBS This Morning on Monday, CIA Director Mike Pompeo repeated his claim that a nuclear North Korea is only a “handful of months” away from being able to strike the US, according to a new report. Previously, the public estimates from the intelligence community were that North Korea still has at least a year to go before it would acquire the capacity to launch a nuclear strike on the Continental US with a high degree of accuracy.

Pompeo added that the US government is working diligently to extend the timeline, while his interviewer, CBS’s Norah O’Donnell pointed out that he said the same thing a few months prior. Pompeo acknowledged this: “It’s true,” he said.

“I hope to be able to say that a year from now as well,” Pompeo said.

O’DONNELL: This September Kim Jong Un detonated a sixth nuclear bomb. … Did we know that was coming?

POMPEO: Yes. Here’s what we can say. We can always identify that the program is continuing. … We’ll never know the exact nature of what’s taking place. We’ll never know the exact moment that they’re going to continue. But the core risk that the policymakers needed to know was that North Korea’s nuclear weapons program is continuing to expand, advance, become more powerful, more capable, more reliable. Each of those things had been shared with policymakers.

O’DONNELL: So to be clear, how close is Kim Jong Un to being able to deliver a nuclear attack to the territorial United States?

POMPEO: A handful of months.

O’DONNELL: But correct me if I’m wrong. I do believe you have used that phrase, more than six months ago, you said a handful of months –

POMPEO: It’s true. I hope to be able to say it a year from now as well. … The United States government is working diligently to extend that timeline.

Pompeo’s comments followed North Korea’s November launch of its Hwasong 15 intercontinental ballistic missile, its largest and most sophisticated yet. Kim claimed the missile could hit anywhere on the continental US.

As the New York Post explains, US officials dispute that, suggesting the rocket may only make it to the West Coast when loaded down with a nuclear device, as opposed to dummy payloads used in test launches. The missile’s actual range is less clear, because the nation test fired it nearly straight up rather than horizontally.

There is also the question of whether a genuine warhead could withstand the blistering heat that it would be subject to upon re-entering the earth’s atmosphere.

Meanwhile, anxiety over a potential missile strike has been exacerbated by a false alarm missile alert that provoked a mass panic in the state of Hawaii earlier this month.

end

This is not good;  North Korean officials raid homes and farms to feed its army

(courtesy Mac Slavo.SHFTplan.com)

 

WW3 Preparations? Amidst Drought, North Korean Officials Raid Homes And Farms To Feed Army

Authored by Mac Slavo via SHTFplan.com,

North Korean officials are ransacking homes and raiding farms in order to feed their starving army.

 

https://www.zerohedge.com/sites/default/files/inline-images/20180123_NK1.jpg

Not only has the drought taken its toll on the nation, but this newest harsh seizure of food is causing internal clashes between the civilians and the army.

 

 

https://www.zerohedge.com/sites/default/files/inline-images/20180123_NK3.jpg

Soldiers for the communist regime had already been given long periods of leave in order to try to find food and make money to purchase food. However, it hasn’t been enough. Collective farms are suffering due to drought and poor harvests, leading officials to ransack farms and homes in order to find any stored food or money that might benefit the army, Daily NK reports.

https://www.zerohedge.com/sites/default/files/inline-images/20180123_NK2.jpg

While North Korean citizens are used to officials searching for food and asking for bribes, their use of increasingly brutal tactics to feed a starving army has led to reported clashes between troops and citizens. Farms in the country have not been able to meet quotas, and in response, officials are giving them new assignments.

“We are suffering because collective farms in our region did not have a good harvest last year and so we were unable to fulfill the mandatory quota for military provisions. All individuals who weren’t able to meet the demands have been receiving additional assignments since the very beginning of January,” a source in South Hamgyong Province reported to Daily NK.

 “This year, we have to postpone our farm work due to this ‘extremely urgent’ task of gathering food for the military,” the source said.

In the past, individuals were allowed to take leave from farm work to obtain money for fertilizer or farm equipment.  But this year, any money is being used to procure food and other items for military use.

“Last year, most of this region, including the Taehongdan, Pochon, Samjiyon, and Paekam areas, were not able to meet their military provision quotas. These demands are pushing people to their wits’ end,” said a separate source in the Ryanggang Province.

“Sometime in spring, the collective farms that are behind on their quotas will have some of their constituents provide frozen potatoes, which are processed by peeling and drying before presentation to the authorities. But many also call the season the ‘time when thieves (in this case, the farm authorities) rear their ugly heads,‘” he added.

Famine is believed to have previously killed millions of people in the hermit kingdom. The communist regime prioritizes sending food and resources to the military and high ranking government officials over its general population.

 end
 

3 b JAPAN AFFAIRS

c) REPORT ON CHINA

end

4. EUROPEAN AFFAIRS

Caterpillar Dealer Sales Soar Most In 6 Years

If Caterpillar’s dealer sales statistics, traditionally released just one day before the company’s earnings report, are an indication of what to expect from the heavy industrial equipment maker, then CAT’s Q4 results will be a blow out.

As shown in the following chart, growth in world retail sales jumped from 26% to 34% in December, the highest single month increase since August 2011, and nearly double the 19% growth rates just 2 months ago. The last time retail sales spiked this fast we into the 2010-2011 inflationary surge, which led to China rapidly hiking rates to arrest inflation, and unleashed the most acute phase of Europe’s sovereign debt crisis. So far, inflation in China remains missing although that will change soon.

On a regional basis, CAT reported an increase in every single geographic segment:

  • North America machine sales up 23% after rising 12% in Nov.
  • Asia/Pacific Dec sales up 50% after rising 43%
  • Latam Dec. sales up 55% after rising 48%
  • EAME (Europe, Africa, Middle East) Dec. sales up 37% after rising 32%

 

That said, before reading too much into the CAT data, recall that between 2013 and 2017, CAT went through a period of 51 consecutive months of declining retail sales, which however failed to adversely impact either the CAT stock price, or result in an accepted economic recession. It is worth noting, however, that CAT’s rebound, as well as that of every other asset, start in early 2016, right around the time of the Shanghai Accord, when China’s implicit intervention in global market changed everything and has resulted in 21 of 22 consecutive months of S&P growth.

 

7. OIL ISSUES

 

WTI tops 65 dollars for the first time since 2014 despite record production.

(courtesy zerohedge)

 

 

8. EMERGING MARKET

 end

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

Euro/USA 1.2334 UP .0027/ REACTING TO MERKEL’S FAILED COALITION/ SPAIN VS CATALONIA/REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems + USA election:/TRUMP HEALTH CARE DEFEAT//ITALIAN REFERENDUM DEFEAT/AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA FALLING INTEREST RATES AGAIN/HOUSTON FLOODING/EUROPE BOURSES ALL RED 

USA/JAPAN YEN 109.53 DOWN  0.594 (Abe’s new negative interest rate (NIRP), a total DISASTER/SIGNALS U TURN WITH INCREASED NEGATIVITY IN NIRP/JAPAN OUT OF WEAPONS TO FIGHT ECONOMIC DISASTER/

GBP/USA 1.4150 UP .0139 (Brexit March 29/ 2017/ARTICLE 50 SIGNED

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

USA/CAN 1.2330 DOWN .0084 (CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA)

Early THIS WEDNESDAY morning in Europe, the Euro ROSE by 27 basis points, trading now ABOVE the important 1.08 level RISING to 1.2334; / Last night the Shanghai composite CLOSED UP 12.96 POINTS OR 0.37% / Hang Sang CLOSED UP 27.99 POINTS OR 0.08% /AUSTRALIA CLOSED UP 0.29% / EUROPEAN BOURSES ALL RED  

The NIKKEI: this WEDNESDAY morning CLOSED DOWN 183.37 POINTS OR 0.76%

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

2/ CHINESE BOURSES / : Hang Sang CLOSED UP 27.99 POINTS OR 0.08% / SHANGHAI CLOSED UP 12.96 POINTS OR 0.37% /Australia BOURSE CLOSED UP 0.29% /

Nikkei (Japan)CLOSED DOWN 183.37 POINTS OR 0.76%

INDIA’S SENSEX IN THE GREEN

Gold very early morning trading: 1350.95

silver:$17.24

Early WEDNESDAY morning USA 10 year bond yield: 2.6410% !!! UP 3 IN POINTS from TUESDAY night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/ALSO GETTING DANGEROUSLY CLOSE TO 2.70%

The 30 yr bond yield 2.9280 UP 3 IN BASIS POINTS from TUESDAY night. (POLICY FED ERROR)

USA dollar index early WEDNESDAY morning: 89.629 DOWN 50  CENT(S) from YESTERDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

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And now your closing WEDNESDAY NUMBERS \1 PM

Portuguese 10 year bond yield: 1.898% DOWN 1  in basis point(s) yield from TUESDAY/

JAPANESE BOND YIELD: +.084% UP 6/10   in basis points yield from TUESDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.358% DOWN 0  IN basis point yield from TUESDAY/

ITALIAN 10 YR BOND YIELD: 1.909 UP 2  POINTS in basis point yield from TUESDAY/

the Italian 10 yr bond yield is trading 55 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: +.588%  UP 2 IN BASIS POINTS ON THE DAY

END

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IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.2394 UP.0085 (Euro UP 85 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 109.22 DOWN 0.896 Yen UP 90 basis points/

Great Britain/USA 1.4208 UP .0195( POUND UP 195 BASIS POINTS)

USA/Canada 1.2357 DOWN  .0056 Canadian dollar UP 56 Basis points AS OIL ROSE TO $64.80

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This afternoon, the Euro was UP 85 to trade at 1.2394

The Yen ROSE to 109.22 for a GAIN of 90 Basis points as NIRP is STILL a big failure for the Japanese central bank/HELICOPTER MONEY IS NOW DELAYED/BANK OF JAPAN NOW WORRIED AS AS THEY ARE RUNNING OUT OF BONDS TO BUY AS BOND YIELDS RISE

The POUND ROSE BY 195 basis points, trading at 1.4209/

The Canadian dollar ROSE by 56 basis points to 1.2357/ WITH WTI OIL RISING TO : $64.80

The USA/Yuan closed AT 6.3580
the 10 yr Japanese bond yield closed at +.094% UP 6/10  BASIS POINTS / yield/
Your closing 10 yr USA bond yield UP 3 IN basis points from TUESDAY at 2.654% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.945 UP 6  in basis points on the day /

Your closing USA dollar index, 89.35 DOWN 78 CENT(S) ON THE DAY/1.00 PM/

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

London: CLOSED DOWN 88.40 POINTS OR 1.14%
German Dax :CLOSED DOWN 144.86 POINTS OR 1.07%
Paris Cac CLOSED DOWN 40.10 POINTS OR 0.72%
Spain IBEX CLOSED DOWN 46.50 POINTS OR 0.44%

Italian MIB: CLOSED DOWN 213.88 POINTS OR 0.90%

The Dow closed UP 41.31 POINTS OR 0.16%

NASDAQ WAS DOWN 45.23 Points OR 0.61% 4.00 PM EST

WTI Oil price; 64.80 1:00 pm;

Brent Oil: 69.89 1:00 EST

USA /RUSSIAN ROUBLE CROSS: 56.29 DOWN 9/100 ROUBLES/DOLLAR (ROUBLE HIGHER BY 9 BASIS PTS)

TODAY THE GERMAN YIELD FALLS TO +.561% FOR THE 10 YR BOND 1.00 PM EST EST

END

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

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

WTI CRUDE OIL PRICE 4:30 PM:$66.00

BRENT: $70.77

USA 10 YR BOND YIELD: 2.648%   THE RAPID ASSENT IN YIELD IS VERY DANGEROUS/ANYTHING OVER 2.70% AND THE ENTIRE DERIVATIVES BLOW UP

USA 30 YR BOND YIELD: 2.931%

EURO/USA DOLLAR CROSS: 1.2399 UP.0091  OR 91 BASIS POINTS

USA/JAPANESE YEN:109.18 DOWN 0.937/ YEN UP 94 BASIS POINTS

USA DOLLAR INDEX: 89.25 DOWN 88 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.4210 : UP 200 POINTS FROM LAST NIGHT

Canadian dollar: 1.23322 UP 83 BASIS pts

German 10 yr bond yield at 5 pm: +0.561%

END

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

TRADING IN GRAPH FORM FOR THE DAY

The Mnuchin Massacre: Precious Metals Surge Amid Dollar’s Worst Start In 30 Years

The Dollar was smashed with the ugly-stick today as Mnuchin’s comments sparked chaos in FX markets… and as precious metals surged and bond yields jumped… and stocks actually sank (briefly)… we were reminded by the mainstream media that a falling dollar is great for ‘Murica so buy the dip in stocks with all your money on the sidelines…

The Mnuchin Massacre (or Ross Rout)…

 

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EOD5.jpg

 

The Dollar crashed over 1% today – its worst day since The Fed hiked rates in March 2017…

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EOD2.jpg

This is the worst start to a year since 1987…

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EOD3.jpg

Interestingly, stocks soared (just as they are now) as the dollar crashed (just as it is now) in 1987… before things went pear-shaped…

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EOD4.jpg

 

Today, as the dollar dumped so Bitcoin, gold, and silver surged…

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EOD1.jpg

 

Stocks were also whacked with the ugly trade-war stick during the day but the machines worked their magic to get the S&P and Dow back to even… With a late-day flater, only The Dow closed green… at a new record high…

 

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EOD15.jpg

While we v-shape-recovered, we note that Mnuchin and Ross gave stock investors their 2nd 1%-drawdown of the year.

 

VIX briefly topped 12 intraday but was monkey-hammered lower in an effort to get the S&P back to green…BUT FAILED

 

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EOD14.jpg

 

Of course – once the NYSE was unbroken, the panic-bid began…

 

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EOD13.jpg

 

Trannies were trashed as the Airline index plunged on United headlines…The Airline index is now in the red YTD…

 

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EOD10.jpg

This was Airlines biggest plunge (6%) since Brexit.

 

As AAPL continues to slide, so FANG stocks soar…

 

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EOD11.jpg

 

Bonds were dumped overnight but bid off technical support as stocks sank…NOTE that only 2Y Yield are higher on the week…

 

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EOD12.jpg

 

Commodities were all higher on the day as the dollar dumped but precious metals stood out.

Silver surged most since Brexit to 4-month highs…

 

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EOD7.jpg

 

Today saw gold’s highest close since Sept 2016…

 

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EOD8.jpg

 

Bitcoin managed to hold on to gains but Ethereum outperformed on the day…

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EOD9.jpg

 

WTI/RBOB surged after an initial drop following DOE inventory/production data… (WTI almost hit $66, the highest since Dec 2014)

 

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EOD6.jpg

Finally, we leave it up to Sven Henrich to sum things up perfectly…

Please let me know when the euphoria begins 😂

END

 

LAST NIGHT EARLY TRADING (Tuesday night)

(zerohedge)

Dollar Dumps Below Key Level – Worst Start To A Year Since 2003

DOLLAR INDEX SPOT

DXY:CUR
89.939
USD
 0.185
 0.21%

For the first time since December 2014, the Dollar Index has tumbled below 90.00 tonight as the greenback-bloodbath continues in early Asian FX trading…amid US trade policy concerns.

https://www.zerohedge.com/sites/default/files/inline-images/20180123_USD.jpg

2017 was an ugly year for the dollar, but 2018 is starting off worse with the Dollar Index down 2.43% so far – the worst start since 2003.

In fact it has been a one-way street since The Fed hiked rates in December.

https://www.zerohedge.com/sites/default/files/inline-images/20180123_USD1.jpg

 

Also of note tonight, the dollar weakness has sent USDJPY back below 110

https://www.zerohedge.com/sites/default/files/inline-images/20180123_USD2.jpg

As Bloomberg reports, the dollar dropped to a three-year low, weighed by concerns over U.S.’s trade policies and a report that President Donald Trump may be questioned in the Russian investigation.

The Dollar Index is poised for its third day of losses as investors await China’s reaction to Trump’s trade tariffs on solar panels and washing machines.

Special counsel Robert Mueller wants to question Trump about his decision to fire former FBI Director James Comey as well as the removal of Michael Flynn.

“While at this stage Trump’s protectionist rhetoric is being applied sparingly and not drawing a reaction from China, there is the threat of Trump ramping up protectionism,” said David Forrester, a strategist at Credit Agricole SA’s corporate and investment-banking unit in Hong Kong. That will weigh on the dollar, he said.

The question is – will the lagged correlation continue?

 

https://www.zerohedge.com/sites/default/files/inline-images/20180123_USD3.jpg

END
Early Wednesday morning
Trade wars are to commence as Mnuchin endorses a weaker USA currency on top of tariffs.  This accelerated the downfall on the uSA this morning
(courtesy zerohedge)

Dollar Tumbles After Mnuchin Endorses Weaker Currency, Ross Speaks Of Trade Wars

Caught in a relentless downward spiral which has puzzled many a trader, it wasn’t as if the US Dollar needed any help in accelerating its decline, yet that’s precisely what happened this morning in Davos when none other than the US Treasury Secretary Steven Mnuchin “broke with tradition” of supporting the US currency, and said that he endorsed the dollar’s decline as a benefit to the U.S. economy.

Obviously a weaker dollar is good for us as it relates to trade and opportunities, Mnuchin told reporters on Wednesday at the World Economic Boondoggle in Davos. “But again I think longer term the strength of the dollar is a reflection of the strength of the U.S. economy and the fact that it is and will continue to be the primary currency in terms of the reserve currency.”

Well, if China’s ambitions are unchallenged, the dollar’s reserve currency status may not be primary for long, but we’re not there quote yet.

Meanwhile, the dollar tumbled on the news, with the Bloomberg dollar index sliding to its lowest level in three years, extending the recent slide amid investor concern over President Donald Trump’s protectionist agenda and a special counsel investigation stemming from his 2016 campaign.

Mnuchin shocked Davos participants because while it echoed Trump’s own doubts over a strong currency, the Treasury Secretary’s “mini QE” came as U.S. officials confront the global elite with their “America First” agenda.

As Bloomberg adds, just hours after the U.S. slapped tariffs on solar panels and washing machines, commerce Secretary Wilbur Ross, who spoke alongside Mnuchin, said more measures are in the offing. And there is no more efficient way to accelerate trade wars than to slam your own currency, making foreign exporters suffer. The only question is how will they, and everyone else, will respond.

And speaking of trade wars, Wilbur Ross said that “Trade wars are fought every single day… So a trade war has been in place for quite a little while, the difference is the U.S. troops are now coming to the rampart.”

It’s a message Trump is likely to send in person on Friday when he becomes the first American president in 18 years to address the Davos gathering of corporate executives and investors.

 end
The Composite USA PMI which covers both manufacturing and service tumbles to a 8 month low.  It was the service sector that had the big slump
(courtesy zerohedge)

US Composite PMI Tumbles To 8-Month Lows As Services Slump

Following mixed European PMI data (Services up, Manufacturing down), and a divergent December in the US, January flash PMIs show that divergence is expanding with Services slumping to 9-mo lows and Manufacturing up at 12-mo highs.

https://www.zerohedge.com/sites/default/files/inline-images/20180124_PMI2.jpg

This shift has sparked weakness overall with the Composite PMI sliding to its lowest since May 2017…signaling GDP growth way below the 3% hopes.

https://www.zerohedge.com/sites/default/files/inline-images/20180124_PMI1.jpg

Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:

“January saw an encouraging start to the year for the US economy. Business activity across the manufacturing and service sectors continued to expand, driving further job gains as companies expanded capacity. Manufacturing is faring especially well, in part thanks to the weaker dollar, providing an important spur to the economy at the start of the year.

Although the overall pace of economic growth signalled by the surveys waned to an eight-month low, the forward-looking indicators suggest the slowdown will prove transitory. In particular, business optimism about the year ahead improved markedly and inflows of new orders hit a five-month high. Growth should therefore pick up again in coming months.

Inflationary pressures meanwhile kicked higher, with January seeing the second-largest monthly increase in input costs since 2015. Higher oil prices were widely reported but, more generally, stronger demand is also helping companies push through price hikes.”

Some notable sliver-lining-seeking going on in those comments.

end

The USA seems that it is not doing as well as Europe:  Today existing home sales slumped due to record low supply

(courtesy zerohedge)

Existing Home Sales Slump In December On Record Low Supply

December’s housing data kicked off on a dismal note as Existing Home Sales slumped 3.6% MoM (after a 5.6% surge in November, which was revised lower).

Against expectations of a 1.9% MoM Drop, December’s 3.6% plunge is the biggest since Feb 2017. This drop was made worse by the downward revision of November’s 5.6% surge to 5.1%…

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EX1.jpg

Overall, 2017 sales of 5.51m were up 1.1% from 2016 – the smallest gain in three years.

Sales of previously-owned U.S. homes fell in December for the first time in four months, as the market struggles with record-low supply and rising prices, figures from the National Association of Realtors showed Wednesday.

As Bloomberg reports, the decline, deeper than economists estimated, indicates inventory issues across the U.S. are limiting Americans’ ability to purchase despite low mortgage rates and a solid job market. Higher prices spell lower affordability, particularly for first-time buyers: The median selling price rose 5.8 percent in 2017, easily outpacing wage gains.

“Inventory concerns remain with us,” with no immediate sign of a reversal, Paul Bishop, NAR’s vice president of research, said at a press briefing accompanying the report.

https://www.zerohedge.com/sites/default/files/inline-images/20180124_EX2.jpg

The December figures also reflect a squeeze on affordability, even as demand continues apace due to solid job growth and low mortgage rates, Bishop said. “Price growth is going to be a little slower than it might have been without the tax reform,” and sales in 2018 are forecast to be little changed at 5.52 million, he said.

 end

Starbucks is the latest company to announce a 250 million dollar spending program for worker benefits which include a pay boost

(courtesy zero hedge)

Starbucks Will Spend $250 Million On Worker Benefits

Starbucks Corp. just joined the growing list of US corporations that are boosting pay for workers thanks to the Trump tax cuts.

The company revealed Wednesday morning that it plans to spend $250 million on new employee benefits – including a pay boost for domestic workers, in the wake of the federal tax overhaul, Bloomberg reported.

Starbucks

The coffee chain will increase pay for its 150,000 US hourly workersand salaried employees in April, following its regular annual raise earlier this month. It’s the latest US corporation to pledge to spend a portion of its federal tax-cut windfall this month. The company is also giving an extra 2018 stock grant to US employees, and sick time will expand parental leave to include non-birth parents.

“Investing in our partners has long been our strategy,” Starbucks Chief Executive Officer Kevin Johnson said in a memo to employees.

“Due to the recent changes in U.S. tax law, we are able to accelerate some significant partner investments.”

Unlike Wal-Mart, Starbucks isn’t touting a new starting wage. The coffee giant says the new level will vary by region, and it already pays more than the minimum wage in all 50 states.

Starbucks also has been investing in mobile technology to fix congestion at pickup counters in the U.S., where sales have struggled to keep pace with international growth. The company is slated to give investors an update on its progress when it reports earnings on Thursday.

Yesterday, both JP Morgan Chase & Co. and Disney  announced wage hikes and bonuses for employees. JPM also said it would embark on a $20 billion plan to expand its branch locations.

The bond market is already in bear territory and this will cause a massive crash to the financial system  (as outlined by Russell Clark of Horseman Capital)
(courtesy Ray Dalio/zerohedge)

Ray Dalio Says Bond Bear Market Has Begun, Expects Historic Crash

Joining the likes of Bill Gross and Jeffrey Gundlach, and echoing his ominous DV01-crash warning to the NY Fed from October 2016, Bridgewater’s billionaire founder and CEO Ray Dalio told Bloomberg  TV that the bond market has “slipped into a bear phase” and warned that a rise in yields could spark the biggest crisis for fixed-income investors in almost 40 years.

“A 1 percent rise in bond yields will produce the largest bear market in bonds that we have seen since 1980 to 1981,” Bridgewater Associates founder Dalio said in a Bloomberg TV interview in Davos on Wednesday. We’re in a bear market, he said.

Readers may recall that when addressing the NY Fed in October 2016, Dalio made virtually the same prediction when he commented on the bond market’s DV01:

… it would only take a 100 basis point rise in Treasury bond yields to trigger the worst price decline in bonds since the 1981 bond market crash. And since those interest rates are embedded in the pricing of all investment assets, that would send them all much lower.

Dalio is referring to the record DV01 in the bond market, which according to the latest OFR report released in December, has risen to $1.2 trillion: that’s the P&L loss from a 100bps rise in rates.

The watchdog found that “valuations are also elevated” in bond markets. Of particular interest is the OFR’s discussion on duration. Picking up where we left off in June 2016, and calculates that “at current duration levels, a 1 percentage point increase in interest rates would lead to a decline of almost $1.2 trillion in the securities underlying the index.”

Visually:

However, as we explained last December, this is a low-ball estimate which “understates the potential losses” as it “does not include high-yield bonds, fixed-rate mortgages, and fixed-income derivatives”, which would suggest that the real number is likely more than double the estimated when taking into account all duration products. As a reminder, Goldman calculated the entire duration universe at $40 trillion as of the summer of 2016, resulting in $2.4 trillion in losses for a 1% move. By now the number is far, far greater.

* * *

Speaking at Davos, Dalio also predicted that the Federal Reserve will tighten monetary policy more than they have signaled, and said that “economic growth is in the late stage of the cycle but could continue to improve for another two years.”

Echoing what he said on CNBC yesterday, Dalio said that The current economic environment is good for stocks but bad for bond investors.

“It feels stupid to own cash in this kind of environment. It’s going to be great for earnings and great for stimulation of growth.”

Following Dalio’s remarks, Treasury yields spiked and are legging higher again, back above 2.65%

https://www.zerohedge.com/sites/default/files/inline-images/20180124_10Y1.jpg

… while the yield curve is steepening back above YTD flat…

https://www.zerohedge.com/sites/default/files/inline-images/20180124_10Y2.jpg

His full interview below:

https://www.bloomberg.com/api/embed/iframe?id=0da144fe-f0e6-4013-aae6-9b4b7a50a74b

end
Simple:  Trump to Schumer: if there is no wall, there is no DACA
(courtesy zerohedge)

Trump To Schumer: No Wall, No DACA

President Trump fired off a Tuesday night tweet to “Cryin'” Chuck Schumer (D) letting let the New York Senate Minority Leader know that without funding for the wall – one of the president’s cornerstone campaign promises, there would be no compromise on legislation to help so-called Dreamers, something we expected when we reported that Schumer was pulling his border wall funding “offer” on Tuesday.

a

Schumer had offered and then withdrawn a deal which would secure funding for the wall in exchange for an agreement over immigration. Schumer’s office confirmed on Tuesday  that the offer – initially made last Friday during negotiations over the shutdown – had been withdrawn on Sunday.

“Cryin’ Chuck Schumer fully understands, especially after his humiliating defeat, that if there is no Wall, there is no DACA. We must have safety and security, together with a strong Military, for our great people!” Trump tweeted.

Cryin’ Chuck Schumer fully understands, especially after his humiliating defeat, that if there is no Wall, there is no DACA. We must have safety and security, together with a strong Military, for our great people!

Trump was of course referring to the Obama-era “Deferred Action for Childhood Arrivals” program which offers federal protection to illegal immigrants brought into the United States as children. While running for president, Trump said that he would repeal DACA on “day one” of his presidency. Nearly six months later on June 16, 2017 the Department of Homeland Security announced that it would repeal the program, with Attorney General Jeff Sessions confirming the repeal in early September.

Congressional Democrats attempted to strongarm a DACA compromise out of GOP leaders last weekend, threatening to allow a government shutdown if no deal was reached. Republicans called their bluff, as Senate Minority Leader Chuck Schumer caved after three days with a stopgap funding bill that would keep the lights on in DC until February 8 following a commitment from Senate Majority Leader Mitch McConnell (R-KY) to resume immigration talks in February.

As we noted on Monday, Democratic Senators with 2020 presidential aspirations naturally came out against the agreement.

“The Majority Leader’s comments last night fell far short of the ironclad guarantee I needed to support a stopgap spending bill,” said Sen. Kamala Harris (D-Calif.) “I refuse to put the lives of nearly 700,000 young people in the hands of someone who has repeatedly gone back on his word. I will do everything in my power to continue to protect Dreamers from deportation.”

Sens. Cory Booker, Bernie Sanders, Elizabeth Warren, and Kirsten Gillibrand – some of the most vocal members of the Trump “resistance” – all voted against closing debate over DACA.

Earlier this month, House Judiciary Committee member Louie Gohmert (R-TX) wrote a scorching op-ed warning that if Trump betrays his base and works with Republicans to pass a “DACA amnesty” bill without first “securing the border and building a wall where it is needed,” Republicans will get slaughtered in the 2018 midterm elections less than ten months away – with Nancy Pelosi reclaiming her seat as Speaker of the House.

Trump, meanwhile, has said no DACA without a wall. “It’s gotta include the wall,” said the US President at a press conference in early January with Norway’s prime minister. “Any solution has to include the wall, adding “We need the wall for security, we need the wall for safety, we need the wall for stopping the drugs from pouring in.”

 

 

end

 

GE’s stock falls as they announce an SEC probe into one of their insurance companies.  They took a huge charge of 6.2 billion dollars

(courtesy zerohedge)

GE Stock Erases Pre-Open Gains On SEC Probe Headlines

After a brief respite in the early morning hours as GE raised its guidance, shares in the beleaguered company are tumbling once again on a statement that the firm is under investigation by the SEC.

As Bloomberg reports, General Electric said it’s under investigation by the U.S. Securities and Exchange Commission after taking a $6.2 billion charge related to an old insurance business. The company said it’s cooperating fully with the probe, which is in the early stages.

“We’ve been notified by the SEC that they are investigating the process leading to the insurance-reserve increase and fourth-quarter charge, as well as GE’s revenue recognition and controls for long-term service agreements,” GE Chief Financial Officer Jamie Miller said Wednesday on a conference call with analysts and investors.

The result is that early gains are gone…

https://www.zerohedge.com/sites/default/files/inline-images/20180124_GE.jpg

Beforee detail sof the SEC investigation slammed the stock, Reuters reports that the stock was higher in part on investor relief that the company reaffirmed its 2018 profit forecast, RBC Capital Markets analyst Deane Dray said in a note to clients.

“Some short-covering could be triggered just on the news that GE reaffirmed 2018, but the gravity of its operating challenges — especially at Power — are likely to continue to pressure the stock over the near-term,” he wrote.

GE kept unchanged its recent forecast for 2018 earnings of between $1.00 and $1.07 a share, which contrasts markedly with $2 a share that Immelt had promised before being replaced as CEO in August.

But, we leave you with General Electric CEO’s comments which seem to sum things up nicely…

“There will be a GE in the future… but it will look very different”

Smaller? Bankrupt? Broken-Up?

end

 

SWAMP STORIES

A whistleblower has revealed to Congress that a clandestine, offsite meetings have occurred between high ranking FBI and Dept of Justice people with the sole purpose to undermine President Trump.  This was confirmed by Rep Ron Johnson of Wisconsin

(courtesy zerohedge)

Whistleblower Confirms “Secret Society” Meetings Between FBI And DOJ To Undermine Trump

A whistleblower has revealed to Congress that clandestine, offsite meetings between high ranking FBI and DOJ took place in which officials discussed ways to undermine President Trump after the 2016 election, Rep. Ron Johnson (R-WI) told Fox News on Tuesday.

The bombshell revelation all but confirms a “secret society” alluded to in text messages released last Friday between two anti-Trump FBI employees tasked with investigating both Hillary Clinton and Donald Trump.

The secret society — we have an informant talking about a group holding secret meetings off-site,” Johnson said.

“We have to continue to dig into it,” he added. “This is not a distraction. This is biased, potentially corruption at the highest levels of the FBI.” –The Hill

In stunning admission, Sen. Ron Johnson (R-WI) reveals an informant is briefing Congress on “offsite” meetings by “Secret society” mentioned in Strzok-Page texts.

On Monday night, Reps. John Ratcliffe (R-TX) and Trey Gowdy (R-SC) told Fox News of the “secret society” texts between FBI investigators Peter Strzok and Lisa Page – contained within a 384-page batch of text messages delivered to Congress from the DOJ last Friday. Of note Ratcliffe says that Strzok and Page were included in the clandestine anti-Trump cabal at the highest levels of the American intelligence community.

.@RepRatcliffe on 5-month gap discovered in new FBI texts: “For former prosecutors like @TGowdySC & myself…it makes it harder & harder for us to explain away one strange coincidence after another.” http://fxn.ws/2Bnox96 

What we learned today in the thousands of text messages that we have reviewed that perhaps they may not have done that (checked their bias at the door). There’s certainly a factual basis to question whether or not they acted on that bias. We know about this insurance policy that was referenced in trying to prevent Donald Trump from becoming president.

We learned today from information that in the immediate aftermath of his election that there may have been a secret society of folks within the Department of Justice and the FBI to include Page and Strzok to be working against him.

As part of the 384 page document delivery, the Department of Justice notified Congressional investigators that five months of text messages from December 14, 2016 to May 17, 2017 have gone missing (ironically there is a text message about “not keeping texts” from last Friday’s release).

Where are the 50,000 important text messages between FBI lovers Lisa Page and Peter Strzok? Blaming Samsung!

And while Strzok and Page’s communications for five months after the election apparently won’t see the light of day, what we do know is that right before the election, Strzok and Page texted about an “insurance policy” against Donald Trump becoming President.

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”

To recap: we now have text messages between Strzok and Page referencing an “insurance policy” and a “secret society” of people within the DOJ and FBI who came together in the “immediate aftermath” of the 2016 election to undermine President Trump… and a whistleblower who has now told Congress that’s exactly what happened in the form of secret, offsite meetings between officials at the two agencies.

end

 

A good summary so far of the massive scandal brewing at the FBI

(courtesy zerohedge)

“Too Big To Believe” – Massive Scandal Is Brewing At The FBI

As the Potemkin Village walls of The Left’s ‘Trump Collusion’ narrative crash and burn along with special counsel Mueller’s credibility, The New York Post’s Michael Goodwin sees far more wide-ranging problems ahead for America’s ‘intelligence’ agencies as the anti-Trump ‘secret society’ and lovers-texts-gate debacles threaten the core of the Deep State.

Goodwin writes that, during the financial crisis, the federal government bailed out banks it declared “too big to fail.” Fearing their bankruptcy might trigger economic Armageddon, the feds propped them up with taxpayer cash.

Something similar is happening now at the FBI, with the Washington wagons circling the agency to protect it from charges of corruption. This time, the appropriate tag line is “too big to believe.”

https://www.zerohedge.com/sites/default/files/inline-images/20180124_fbi.jpg

Yet each day brings credible reports suggesting there is a massive scandal involving the top ranks of America’s premier law enforcement agency. The reports, which feature talk among agents of a “secret society” and suddenly missing text messages, point to the existence both of a cabal dedicated to defeating Donald Trump in 2016 and of a plan to let Hillary Clinton skate free in the classified email probe.

If either one is true — and I believe both probably are — it would mean FBI leaders betrayed the nation by abusing their powers in a bid to pick the president.

More support for this view involves the FBI’s use of the Russian dossier on Trump that was paid for by the Clinton campaign and the Democratic National Committee. It is almost certain that the FBI used the dossier to get FISA court warrants to spy on Trump associates, meaning it used the opposition research of the party in power to convince a court to let it spy on the candidate of the other party — likely without telling the court of the dossier’s political link.

Even worse, there is growing reason to believe someone in President Barack Obama’s administration turned over classified information about Trump to the Clinton campaign.

As one former federal prosecutor put it, “It doesn’t get worse than that.” That prosecutor, Joseph ­diGenova, believes Trump was correct when he claimed Obama aides wiretapped his phones at Trump Tower.

These and other elements combine to make a toxic brew that smells to high heaven, but most Americans don’t know much about it. Mainstream media coverage has been sparse and dismissive and there’s a blackout from the same Democrats obsessed with Russia, Russia, Russia.

Partisan motives aside, it’s as if a scandal of this magnitude is more than America can bear — so let’s pretend there’s nothing to see and move along.

But, thankfully the disgraceful episode won’t be washed away, thanks to a handful of congressional Republicans, led by California Rep. Devin Nunes, chairman of the House’s Permanent Select Committee on Intelligence. After he accused the FBI of stonewalling in turning over records, the bureau relented, at least partially.

The result was clear evidence of bias against Trump by officials charged with investigating him and Clinton. Those same agents appear to have acted on that bias to tilt the election to Clinton.

In one text message, an agent suggests that Attorney General Loretta Lynch knew while the investigation was still going on that the FBI would not recommend charges against Clinton.

How could she know unless the fix was in?

All roads in the explosive developments lead to James Comey, whose Boy Scout image belied a sinister belief that he, like his infamous predecessor J. Edgar Hoover, was above the law.

It is why I named him J. Edgar Comey last year and wrote that he was “adept at using innuendo and leaks” to let everybody in Washington know they could be the next to be investigated.

It was in the office of Comey’s top deputy, Andrew McCabe, where agents discussed an “insurance policy” in the event that Trump won. Reports indicated that the Russia-collusion probe was that insurance policy.

The text was from Peter Strzok, the top investigator on the Trump case, and was sent to Lisa Page, an FBI lawyer and also his mistress.

“I want to believe the path you threw out for 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 the unlikely event you die before you’re 40 . . . ” Strzok wrote.

It is frightening that Strzok, who called Trump “an idiot,” was the lead investigator on both the Clinton and Trump cases.

After these messages surfaced, special counsel Robert Mueller removed Strzok and Page from his probe, though both still work at the FBI.

Strzok, despite his talk of an “insurance policy” in 2016, wrote in May of 2017 that he was skeptical Mueller’s probe would find anything on Trump because “there’s no big there there.”

Talk about irony.While Dems and the left-wing media already found Trump guilty of collusion before Mueller was appointed, the real scandal might be the conduct of the probers themselves.

Suspicions are hardly allayed by the fact that the FBI says it can’t find five months of messages between Strzok and Page, who exchanged an estimated 50,000 messages overall. The missing period — Dec. 14, 2016 through May 17, 2017 — was a crucial time in Washington.

There were numerous leaks of classified material just before and after Trump’s inauguration on Jan. 20.

And the president fired Comey last May 9, provoking an intense lobbying effort for a special counsel, which led to Mueller’s appointment on May 19.

Jeff Sessions, the attorney general, has emerged from his hidey hole to notice that the FBI has run amok, and said Monday he would “leave no stone unturned” to find the five months of missing texts.

Fine, but the House is racing ahead of him. Nunes has prepared a four-page memo, based on classified material that purportedly lays out what the FBI and others did to corrupt the election.

A movement to release the memo is gaining steam, but Congress says it might take weeks. Why wait? Americans can handle the truth, no matter how big it is.

END

Judicial Watch does what it does best:  it sues the DOJ for the text messages between our love birds
(courtesy zerohedge/Judicial watch)

Judicial Watch Sues DOJ For Text Messages Of FBI’s Strzok And Page

While we wait for Congress to #releasethememo, Judicial Watch has just done what it has been so good at doing in the past: suing the DOJ to get documents under a Freedom of Information lawsuit, in this case the infamous text messages and all other records between Peter Strzok and Lisa Page.

In a just issued press release, Judicial Watch announced today that it filed a Freedom of Information (FOIA) lawsuit against the Justice Department for text messages and other records of FBI official Peter Strzok and FBI attorney Lisa Page (Judicial Watch v. U.S. Department of Justice (No. 1:18-cv-00154)).

Judicial Watch filed suit after the Justice Department failed to respond to a December 4, 2017, FOIA request for:

  • All records of communications, including but not limited to, emails, text messages and instant chats, between FBI official Peter Strozk and FBI attorney Lisa Page;
  • All travel requests, travel authorizations, travel vouchers and expense reports of Peter Strozk;
  • All travel requests, travel authorizations, travel vouchers and expense reports of Lisa Page.

The time frame for the requested records is February 1, 2015 to the present.

The text messages are of public interest because Strzok and Page were key investigators in the Clinton email and Trump Russia collusion investigations. Strzok was reportedly removed from the Mueller investigative team in August and reassigned to a human resources position after it was discovered that he and a FBI lawyer, Lisa Page, who worked for FBI Deputy Director Andrew McCabe, and with whom Strzok was carrying on an extramarital affair, exchanged pro-Clinton and anti-Trump text messages.

Strzok reportedly oversaw the FBI’s interviews of former National Security Adviser, General Michael Flynn; changed former FBI Director James Comey’s language about Hillary Clinton’s actions regarding her illicit email server from “grossly negligent” to “extremely careless;” played a lead role in the FBI’s interview of Clinton; and is suspected of being responsible for using the unverified dossier to obtain a FISA warrant in order to spy on President Trump’s campaign.

Senator Ron Johnson (R-WI), chairman of the Senate Homeland Security and Governmental Affairs Committee, revealed in a letter dated January 20 that the FBI claimed it is unable to preserve text messages for a five-month period between December 14, 2016, and May 17, 2017, due to “misconfiguration issues” with FBI-issued phones used by Strzok and Page. The missing messages span dates between the presidential transition and the launch of Robert Mueller’s Russia probe, where both Strzok and Page were employed.

The Strzok-Page text messages are potentially responsive to several pending Judicial Watch FOIA lawsuits, but the FBI has yet to produce any of the records, explain the missing records to the courts, or otherwise be forthcoming about these newly disclosed materials.

“I don’t believe for one minute that the Strzok-Page texts are really missing,” said Judicial Watch President Tom Fitton. “The IRS told us that Lois Lerner’s emails were ‘missing,’ and we forced them to admit they existed and deliver them to us. The State Department hid the Clinton emails but our FOIA lawsuits famously blew open that cover-up. We fully intend to get the ‘missing’ Strzok and Page documents. And it is shameful the FBI and DOJ have been playing shell games with these smoking gun text messages. Frankly, FBI Director Wray needs to stop the stonewalling”

Full lawsuit below (pdf)

END

a JOKE!!  it now seems that 1000’s of FBI phones were hit by the same glitch as the lost Strozok-Page texts.  Strange! nobody asks to see the physical phones and nobody has asked the carriers for any copies??

(courtesy zerohedge)

Thousands Of FBI Phones Hit By Same “Glitch” Blamed For Lost Strzok-Page Texts

Over the weekend, when it was revealed that i) over 50,000 text messages had been exchanged between anti-Trump agents Peter Strzok and Lisa Page, and ii) an unknown number of the text messages between the two agents were lost, the agency shifted blame to the largest South Korean company, when it informed the DOJ that many FBI-provided Samsung 5 mobile devices did not capture or store text messages due to misconfiguration issues related to rollouts, provisioning, and software upgrades that conflicted with the FBI’s collection capabilities.

In other words, according to the FBI, it was Samsung’s fault that thousands of text message between employees of the world’s premier law enforcement organization during an especially sensitive period, went missing. And as a reminder, during the window of missing text messages, a lot happened: Trump took the oath of office; National Security Adviser Michael Flynn, whom Strzok interviewed, was fired; the controversial anti-Trump dossier was published; the president fired FBI Director James Comey; and special counsel Mueller was appointed to investigate Russian meddling and potential collusion with Trump campaign associates during the 2016 presidential election.

So far nobody has explained just what these “misconfiguration issues” were or why it took five months to notice the huge gap in message retention, but at least it wasn’t Putin’s fault this time.

The latest FBI farce prompted a bemused outburst from President Trump last night who tweeted “Where are the 50,000 important text messages between FBI lovers Lisa Page and Peter Strzok?  Blaming Samsung!

Then, in another comedic twist, when asked Monday whether the FBI “failed to preserve” text message records on similar “Samsung 5” devices belonging to any other FBI officials during that time period, the FBI told Fox News they had “no comment”.

Well, fast forward to today when the FBI did comment, but in retrospect it would have been better if they had kept their mouth shut. According to Fox News, thousands of FBI cellphones were affected by the same technical glitch that the DOJ says led to the loss of five months’ worth of text messages between Strzok and Page.

How many thousands? According to FBI officials, Fox reports that that the glitch affected the phones of “nearly” 10 percent of the FBI’s 35,000 employees.

Which means that it’s not just Strzok and Page whose text messages from the most critical period of Trump’s administration and the Russian probe were lost: the same happened to another 3,498 FBI employees. Which, in more practical terms, means that once the just announced DOJ probe into missing text message expands, miraculously some 3,500 FBI agents will be found to have had an anti-Trump bias but – thanks Samsung – none of their text messages will be accessible either, so there.

And this time the FBI won’t even have to “wipe its server with a cloth” or use a hammer to pulverize some 3,500 cell phones: it will have a perfectly handy alibi.

To which anyone who is not an idiot would retort: “hold on, doesn’t every cell phone carrier have a copy of every text message sent, not to mention the NSA.” The answer, of course, is yes, but apparently neither the FBI nor Congress has figured it out just yet.

Or maybe they have: Fox writes that “Senior Department of Justice officials told Fox News they are “taking steps” to possibly recover the texts from the appropriate cellphone carriers. The same officials told Fox News they are also making every effort to track down the physical cellphones in question so they could be subject to a forensic review.

Although considering that even the NSA admitted last week that it had “accidentally” deleted millions of emails that it was ordered to preserve, somehow we have a feeling that the same scenario will make a miraculous repeat appearance.

Meanwhile, in an attempt to the bottom of the ongoing mystery, Senate Homeland Security Committee Chairman Ron Johnson, R-Wis., and Senate Judiciary Committee Chairman Chuck Grassley, R-Iowa, sent a letter to Inspector General Michael Horowitz noting that the IG’s office said on December 13 that it had all the messages between Strzok and Page between Nov. 30, 2016 and July 28, 2017, something we first reported  on Monday.

Only over a month later did lawmakers learn that there was actually a five-month gap, and they now want the Inspector General’s office to “reconcile” those two points

end

Trump would speak to Mueller under oath in the next few weeks.

(courtesy zerohedge)

 

Trump Says He Would Speak To Mueller Under Oath , Will Say “No Collusion”

Ahead of the imminent showdown between Special Counsel Robert Mueller and President Trump which according to media reports may take place in the near future, Trump spoke to reporters and said that he is ready to speak to Mueller under oath, will say that there is no collusion, and that while no date has been set yet, his lawyers have advised him that the questioning may take place in 2-3 weeks:

“I’m looking forward to it,” Trump told reporters at the White House when asked whether he would submit to questioning by Mueller’s team. “I would do it under oath,” the president added.

Trump said he expects to speak with Mueller in two to three weeks, but cautioned the specifics are being worked out by his lawyers.

This is the first time Trump has signaled officially that he will be interviewed by Mueller’s team.

The president also said he did not remember asking deputy FBI director Andrew McCabe who he voted for in the 2016 election. “I don’t think so,” Trump said. “I don’t remember asking that question.”

Whether he did ask the question or not, Trump called it “unimportant.”

The interaction, which reportedly took place last year, may be of interest to Mueller, who is looking into whether the president sought to block the federal probe into Russia’s election meddling, although in recent months virtually Mueller’s probe has shifted radically, and it is no longer about Russian collusion but rather obstruction.

Then again considering the deep state’s own reported attempts at interference with the presidential election process in the form of dossiers (courtesy of Russians), lost text messages, “secret societies” and documented anti-Trump bias by members of the investigative team, not to mention the FBI’s deplorable track record of data retention when using Samsung devices, Trump may want to do a backup recording of the interview, just in case.

I will  see you THURSDAY night

HARVEY

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