MARCH 12/GOLD REBOUNDS AGAIN AND DOWN ONLY $3.00 TO $1320.40/IN ACCESS MARKET IT CLOSES ABOVE $1323.00/SILVER IS DOWN ONLY 8 CENTS TO $16.32/ IN ACCESS MARKET SILVER ABOVE $16.55/ ABE GOVERNMENT IN JAPAN MAY BE IN TROUBLE AS THE “KINDERGARTEN” SCANDAL RESURFACES/THERESA MAY FINDS RUSSIA RESPONSIBLE FOR THE POISONING OF 21 PEOPLE , INCLUDING THE TWO PRINCIPAL VICTIMS/IN THE USA, A HUGE FEB DEFICIT OF 215 BILLION DOLLARS DUE TO LACK OF RECEIPTS AND HIGHER OUTLAYS INCLUDING INTEREST ON THE BURGEONING DEBT/MORE SWAMP STORIES/

 

 

GOLD: $1320.40  DOWN $3.00

Silver: $16.52 DOWN 8 CENTS

Closing access prices:

Gold $1323.20

silver: $16.53

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: $1329.15 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME: $1322.90

PREMIUM FIRST FIX: $6.20

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SECOND SHANGHAI GOLD FIX: $1331.10

NY GOLD PRICE AT THE EXACT SAME TIME: $1322.40

PREMIUM SECOND FIX /NY:$8.70

SHANGHAI REJECTS NY PRICING OF GOLD.

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LONDON FIRST GOLD FIX: 5:30 am est $1317.23

NY PRICING AT THE EXACT SAME TIME: $1320.50  ??

LONDON SECOND GOLD FIX 10 AM: $1319.15

NY PRICING AT THE EXACT SAME TIME. $1317.60???

For comex gold:

MARCH/

NUMBER OF NOTICES FILED TODAY FOR MARCH CONTRACT: 0 NOTICE(S) FOR nil OZ.

TOTAL NOTICES SO FAR:4 FOR 400 OZ

For silver:

MARCH

101 NOTICE(S) FILED TODAY FOR

505,000 OZ/

Total number of notices filed so far this month: 4828 for 24,140,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $9772/OFFER $9,842: UP $826(morning)

Bitcoin: BID/ $8795/offer $8867: DOWN $149  (CLOSING/5 PM)

 

end

Let us have a look at the data for today

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In silver, the total open interest ROSE BY A TINY SIZED 436 contracts from 196,520  RISING TO 196,956  DESPITE FRIDAY’S STRONG  21 CENT RISE IN SILVER PRICING.  WE OBVIOUSLY HAD ZERO COMEX LIQUIDATION. HOWEVER, WE WERE AGAIN NOTIFIED THAT WE HAD ANOTHER GOOD SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP : 1107 EFP’S FOR MAY AND ZERO FOR ALL  OTHER MONTHS  AND THUS TOTAL ISSUANCE OF 1107 CONTRACTS.  WITH THE TRANSFER OF 1107 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 24-48 HRS IN THE ISSUING OF EFP’S. THE 1107 CONTRACTS TRANSLATES INTO 5.535 MILLION OZ   WITH THE RISE IN OPEN INTEREST IN SILVER AT THE COMEX.

ACCUMULATION FOR EFP’S/SILVER/J.P.MORGAN’S HOUSE OF BRIBES, / STARTING FROM FIRST DAY NOTICE/FOR MONTH OF MARCH:

19,463 CONTRACTS (FOR 8 TRADING DAYS TOTAL 19,463 CONTRACTS OR 97.315 MILLION OZ: AVERAGE PER DAY: 2432 CONTRACTS OR 12.160 MILLION OZ/DAY

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  97.315 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 13.90% OF ANNUAL GLOBAL PRODUCTION

ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S:  589.79 MILLION OZ.

ACCUMULATION FOR JAN 2018: 236.879 MILLION OZ

ACCUMULATION FOR MONTH OF FEBRUARY: 244.945 MILLION OZ

RESULT: WE HAD A SMALL SIZED GAIN  IN COMEX OI SILVER COMEX OF 436 DESPITE THE STRONG 21 CENT RISE IN SILVER PRICE.  WE ALSO HAD A GOOD SIZED EFP ISSUANCE OF 1107 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 1107 EFP’S  FOR THE  MONTH OF MAY WERE ISSUED FOR  A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS.   WE GAINED  1543 OI CONTRACTS i.e. 1107 open interest contracts headed for London (EFP’s) TOGETHER WITH A INCREASE OF 436  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE RISE IN PRICE OF SILVER OF 21 CENTS AND A CLOSING PRICE OF $16.70 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. 0.984 BILLION TO BE EXACT or 141% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT FEBRUARY MONTH/ THEY FILED: 101 NOTICE(S) FOR 505,000 OZ OF SILVER

 

In gold, the open interest  FELL BY A FAIR SIZED 1618 CONTRACTS DOWN TO 495,769  DESPITE THE STRONG REBOUND IN PRICE ON FRIDAY YESTERDAY ( GAIN OF$2.25) HOWEVER  FOR TODAY, THE CME RELEASED THE DATA FOR EFP ISSUANCE AND IT TOTALED AN GOOD SIZED  6847 CONTRACTS  THE ISSUANCE OF,  APRIL SAW THE ISSUANCE OF 6847 CONTRACTS ,  JUNE SAW THE ISSUANCE OF 0 CONTRACTS AND THEN ALL OTHER MONTHS ZERO.    The new OI for the gold complex rests at 497,187. ALSO REMEMBER THAT THERE WILL 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 FEBRUARY 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  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES. IN ESSENCE WE HAVE A GOOD  OI GAIN   IN CONTRACTS: 1618 OI CONTRACTS DECREASED AT THE COMEX AND A GOOD SIZED 6847 OI CONTRACTS WHICH NAVIGATED OVER TO LONDON.THUS  TOTAL OI GAIN:  5229 CONTRACTS OR 522,900 OZ =16.26 TONNES

FRIDAY, WE HAD 7106 EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MARCH : 75,643 CONTRACTS OR 7,564,300  OZ OR 235.28 TONNES (8 TRADING DAYS AND THUS AVERAGING: 9455 EFP CONTRACTS PER TRADING DAY OR 945,500 OZ/ TRADING DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :   SO FAR THIS MONTH IN 8 TRADING DAYS IN  TONNES: 235.28 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2017, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 2555 TONNES

THUS EFP TRANSFERS REPRESENTS 235.28/2550 x 100% TONNES =  9.21% OF GLOBAL ANNUAL PRODUCTION SO FAR IN MARCH ALONE.

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:  1485,62 TONNES

ACCUMULATION OF GOLD EFP’S FOR JANUARY 2018: 653.22  TONNES

ACCUMULATION OF GOLD EFP’S FOR FEBRUARY: 649.45 TONNES

Result: A  FAIR SIZED DECREASE IN OI AT THE COMEX WITH THE STRONG REBOUND IN PRICE IN GOLD TRADING FRIDAY ($2.25 ULTIMATE GAIN).  HOWEVER, WE HAD ANOTHER HUGE SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 6847 CONTRACTS AS THESE HAVE ALREADY BEEN NEGOTIATED AND CONFIRMED.   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 6847 EFP CONTRACTS ISSUED, WE HAD A NET GAIN IN OPEN INTEREST OF 5229 contracts ON THE TWO EXCHANGES:

6874 CONTRACTS MOVE TO LONDON AND 1618 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 16.26  TONNES).

we had: 0 notice(s) filed upon for nil oz of gold.

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

GLD

WITH GOLD DOWN $3.00 : NO  CHANGES IN GOLD INVENTORY AT THE GLD /

Inventory rests tonight: 833.73 tonnes.

SLV/

WITH SILVER DOWN 8 CENTS TODAY: 

A BIG CHANGES IN SILVER INVENTORY AT THE SLV/ A DEPOSIT OF 943,000 O

/INVENTORY RESTS AT 319.012 MILLION OZ/

end

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

1. Today, we had the open interest in silver ROSE BY 436  contracts from 196,520 UP TO 196,956 (AND now A LITTLE  CLOSER TO THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE THE STRONG REBOUND AND GAIN IN PRICE OF SILVER  (21 CENT RISE WITH RESPECT TO  FRIDAY’S TRADING).   OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE ANOTHER  2686 EFP CONTRACTS FOR MAY  (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 SOME COMEX SILVER COMEX LIQUIDATION. IF WE TAKE THE  OI GAIN AT THE COMEX OF  436 CONTRACTS TO THE 1107 OI TRANSFERRED TO LONDON THROUGH EFP’S, WE OBTAIN A GAIN OF 1543  OPEN INTEREST CONTRACTS  WE STILL HAVE A STRONG AMOUNT OF SILVER OUNCES THAT ARE STANDING FOR METAL IN MARCH (SEE BELOW). THE NET GAIN TODAY IN OZ ON THE TWO EXCHANGES:  7.715 MILLION OZ!!!

RESULT: A FAIR SIZED  INCREASE IN SILVER OI AT THE COMEX DESPITE THE STRONG REBOUND AND RISE IN SILVER PRICING ON FRIDAY (21 CENTS GAIN IN PRICE) . BUT WE ALSO HAD ANOTHER GOOD SIZED 1107 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR MARCH, DEMAND FOR PHYSICAL SILVER INTENSIFIES AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)MONDAY MORNING/LATE FRIDAY NIGHT: Shanghai closed UP 19.83 POINTS OR 0.59% /Hang Sang CLOSED UP 598.12 POINTS OR 1.93% / The Nikkei closed UP 354.83 POINTS OR 1.63%/Australia’s all ordinaires CLOSED UP 0.53%/Chinese yuan (ONSHORE) closed UP at 6.3277/Oil UP to 61.05 dollars per barrel for WTI and 65.16 for Brent. Stocks in Europe OPENED GREEN EXCEPT LONDON  .   ONSHORE YUAN CLOSED UP AT 6.3277 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.3257 /ONSHORE YUAN TRADING WEAKER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING MUCH STRONGER AGAINST THE DOLLAR . CHINA IS  VERY  HAPPY TODAY (STRONGER CURRENCY GOOD CHINESE MARKETS/BUT TRUMP TARIFFS  INITIATED/ ) 

 

 

 

3a)THAILAND/SOUTH KOREA/NORTH KOREA

 i)North Korea

 

b) REPORT ON JAPAN

Last year , we reported to you on the Japanese “kindergarten” scandal.  It roiled Japanese markets for weeks only to be saved by North Korean rockets flying over Japan.  It has now resurfaced and there are reports of altered documents involving Abe’s wife. The tax department also has to answer for this.  The deputy finance minister, Aso is has the tax department reporting to him so he may have to resign and that will put the entire Japanese economic “recovery” in jeopardy

 

( zerohedge)

3 c CHINA

Here is how China might retaliate against those tariffs initiated by Trump

( zerohedge)

4. EUROPEAN AFFAIRS

i)England/Russia

Theresa May is set to blame sovereign Russia for the nerve gas attack on that ex Russian spy.  They seem to have chemical markets connected to a Russian laboratory.  How this is proof that Putin is behind this is your guess, but England is set to initiate more sanctions and she is asking the world to join her with their additional sanctions

 

( zerohedge)

i b)Theresa May declares Russia is clearly responsible for the Skripal poisoning and that this act “amounts to unlawful use of force against the UK”

however I doubt if she will do anything..

( zerohedge)

 

ii)Poland

This is how European Commissioner Tusk, a Pole, double crossed his own country Poland

( GEFIRA)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

USA/ISRAEL/IRAN

Trump realizes that Iran’s high unemployment and lack of growth is causing internal problems for that country.  He is now demanding major changes to the Obama-Iran agreement.  He wants Iran to withdraw from sponsoring terrorism throughout the middle east. Trump in May will not re certify the deal.

( zerohedge)

6 .GLOBAL ISSUES

 

7. OIL ISSUES

It sure looks like the OPEC deal could fall apart by june

(courtesy Irina Slava/OilPrice.com

8. EMERGING MARKET

9. PHYSICAL MARKETS

i)Alabama becomes the 37th state to exempt sales tax on gold and silver bullion as well as coins

( GATA>Numismatic News.Iola Wisconsin)

ii)Ralph Benko explains beautifully by the USA had continual trade deficits in order to maintain its status as the world’s reserve currency.  The USA exported paper dollars which cost them a few pennies and got real goods for that paper money but this occurred with a curse..the USA manufacturers were decimated.  Now Trump is attempting to stop this..

a good read//

(Ralph Benko/GATA)

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

A. i)Trading: Early this afternoon

(zerohedge)

 

2) We have been highlighting this to you for the past several weeks:  i.e. the rise in risks to banks.  The Libor-OIS spread shows an increasing risk for banks to lend to one another.  No doubt a major part of this risk has been the dollar repatriation from Europe back to the USA

( zerohedge)
3)February has not been a good month traditionally for the USA government as we get our traditional tax return drains. Feb 18 was a terrible month for the government as its deficit climbed to $215 billion, the highest deficit since  Feb 2012.  Take note of the Feb 2018 interest at 28 billion dollars.  It is now climbing because the total debt is climbing to almost 21 trillion.
(courtesy zerohedge)
B i)David Stockman writing over the weekend: the bubbles are waiting for their pin prick:
(courtesy David Stockman/ContraCorner)

C i)SWAMPVILLE

a)  1.Stormy Daniels tapes a segment for “60 Minutes” with Anderson Cooper
( zerohedge)
a) 2,Trump is considering an injunction trying to block the “60 Minutes” airing of the interview of Stormy Daniels by Anderson Cooper
( Jon Queally/CommonDreams.org/Buzzfeed)

b)Over the weekend, Trump is said to be ready to clean house.  That means that Kelly, McMaster, Kushner and Ivanka Trump may all be on their way out

( zerohedge)

c)The Wall Street Journal is set to be close to completion of the Trump obstruction probe but it does not look like it is so( zerohedge)

d)A good one.. a former CIA officer highlights the criminal Clinton Foundation as the biggest sscandal in USA history

(Greg Hunter/USAWatchdog/)

e)Michael Snyder explains why he is running for Congress and how he must drain the swamp

( zerohedge)

Let us head over to the comex:

The total gold comex open interest FELL BY A FAIR SIZED 1618 CONTRACTS DOWN to an OI level 497,187  WITH THE STRONG REBOUND IN PRICE AND AN ULTIMATE  RISE IN THE PRICE OF GOLD ($2.25 GAIN/ FRIDAY’S TRADING).  WE HAD MINIMAL COMEX GOLD LIQUIDATION.  HOWEVER THE CME REPORTS THAT  THE BANKERS ISSUED AN FAIR SIZED  COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS. WE HAD A 6874 EFP’S ISSUED FOR APRIL ,   0 FOR JUNE AND ZERO FOR ALL OTHER MONTHS:  TOTAL  6874 CONTRACTS.  THE OBLIGATION STILL RESTS WITH THE BANKERS ON THESE TRANSFERS. ALSO REMEMBER THAT THERE IS NO DOUBT A HUGE DELAY IN THE ISSUANCE OF EFP’S AND IT PROBABLY TAKES AT LEAST  48 HRS AFTER LONGS GIVE UP THEIR COMEX CONTRACTS FOR THEM TO RECEIVE THEIR EFP’S AS THEY ARE NEGOTIATING THIS CONTRACT WITH THE BANKS FOR A FIAT BONUS PLUS THEIR TRANSFER TO A LONDON FORWARD… THE COMEX IS NOW AN ABSOLUTE FRAUD!!

ON A NET BASIS IN OPEN INTEREST WE GAINED TODAY: 5229 OI CONTRACTS IN THAT 6874 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST 1618 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES: 65229 contracts OR 667,400  OZ OR 20.67 TONNES.

Result: A  TINY SIZED DECREASE IN COMEX OPEN INTEREST DESPITE THE STRONG REBOUND IN PRICE ON FRIDAY ULTIMATELY ENDING UP WITH A GAIN OF $2.25   TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES: 5229 OI CONTRACTS..

We have now entered the non active contract month of MARCH where we LOST 17 contracts DOWN to 543 contracts. We had 0 notices served upon yesterday, so in essence we LOST 17 contacts or an additional 1700 oz will not stand for delivery at the comex AND THESE BOYS MORPHED INTO LONDON BASED FORWARDS.

April saw a LOSS of 13,384 contracts DOWN to 260,706. May saw another GAIN of 115 contracts to stand at 358. The really big June contract month saw a GAIN of 9,405 contracts UP to 144,733 contracts.

We had 0 notice(s) filed upon today for  000 oz

comex gold volumes are RISING AGAIN

Here is a summary of the latest gold trading volumes at the Comex per year

certainly the introduction of EFP’s has certainly had an effect:

Trading Volumes on the COMEX

PRELIMINARY COMEX VOLUME FOR TODAY: 230,582 contracts

CONFIRMED COMEX VOL. FOR YESTERDAY:  396,559 CONTRACTS

comex gold volumes are RISING AGAIN

Here is a summary of the latest gold trading volumes at the Comex per year

certainly the introduction of EFP’s has certainly had an effect:

Meanwhile, gold-trading volumes on the COMEX have never been higher:

end

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And now for the wild silver comex results.

Total silver OI ROSE BY A SMALL 436  CONTRACTS FROM 196,520 UP TO 196,956 DESPITE FRIDAY’S STRONG  21 CENT REBOUND AND  RISE IN FRIDAY TRADING).   HOWEVER,WE WERE ALSO INFORMED THAT WE HAD  1107 EMERGENCY EFP’S FOR MAY 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: 1107.   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 OBVIOUSLY HAD ZERO LONG COMEX SILVER LIQUIDATION BUT WE ALSO HAD A HUGE SIZED GAIN IN TOTAL SILVER OI FROM OUR TWO EXCHANGES. WE ARE ALSO WITNESSING A STRONG 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  1543  SILVER OPEN INTEREST CONTRACTS 436 CONTRACT GAIN AT THE COMEX COMBINING WITH THE ADDITION OF 1107 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN ON THE TWO EXCHANGES:1563 CONTRACTS 

AMOUNT STANDING FOR SILVER AT THE COMEX

We are now in the  active delivery month of MARCH and here the front month LOST 140 contracts FALLING TO 499 contracts. We had 173 contracts filed upon yesterday, so we GAINED 33 contracts or an additional 165,000 will  stand in this active delivery month of March.(AS SOMEBODY IS IN GREAT NEED OF PHYSICAL SILVER)

April LOST 3 contracts FALLING TO 427 .

The next big active delivery month for silver will be May and here the OI LOST 1835 contracts DOWN to 143,245

We had 101 notice(s) filed for 850,000 OZ for the MARCH 2018 contract for silver

INITIAL standings for MARCH/GOLD

MARCH 12/2018.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
nil oz
Deposits to the Dealer Inventory in oz NIL oz
Deposits to the Customer Inventory, in oz  nil OZ
No of oz served (contracts) today
0 notice(s)
 400 OZ
No of oz to be served (notices)
543 contracts
(54300 oz)
Total monthly oz gold served (contracts) so far this month
4 notices
400 oz
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 deposit into the dealer accounts:  NIL  oz
total inventory withdrawals out of dealer accounts; nil oz
we had 0 withdrawals out of the customer account:
total withdrawal: nil   oz
we had 0 customer deposit
total customer deposits: nil oz
we had 1 adjustment(s)
i) Out of Scotia: 32.15 oz removed from the customer account
(one kilobar removed from the customer side of things)
total registered or dealer gold:  339,378.269 oz or 10.556 tonnes
total registered and eligible (customer) gold;   9,124,611.485 oz 283.813 tones
THE COMEX IS AGAIN IN STRESS AS ONLY 10.556 TONNES OF GOLD ARE LEFT TO SERVICE DELIVERIES
 

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

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To calculate the INITIAL total number of gold ounces standing for the MARCH. contract month, we take the total number of notices filed so far for the month (4) x 100 oz or 0 oz, to which we add the difference between the open interest for the front month of FEB. (543 contracts) minus the number of notices served upon today (0 x 100 oz per contract) equals 54700 oz, the number of ounces standing in this nonactive month of MARCH (1.7013 tonnes)

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

No of notices served (4 x 100 oz or ounces + {(543)OI for the front month minus the number of notices served upon today (0 x 100 oz )which equals 54700 oz standing in this  nonactive delivery month of March . THERE IS 10.556 TONNES OF REGISTERED GOLD AVAILABLE FOR DELIVERY SO FAR.

WE LOST 17 CONTRACTS OR AN ADDITIONAL 1700 OZ WILL NOT STAND FOR DELIVERY IN THIS NON ACTIVE DELIVERY MONTH OF MARCH.

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XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

IN THE LAST 18 MONTHS 70 NET TONNES HAS LEFT THE COMEX.

end

And now for silver

AND NOW THE DECEMBER DELIVERY MONTH

MARCH INITIAL standings/SILVER

March 12 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
 173,610.010 oz
Brinks
CNT
Scotia
Deposits to the Dealer Inventory
nil
oz
Deposits to the Customer Inventory
nil oz
No of oz served today (contracts)
101
CONTRACT(S
(505,000 OZ)
No of oz to be served (notices)
398 contracts
(1,990,000 oz)
Total monthly oz silver served (contracts) 4828 contracts

(24,140,000 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 0 inventory movement at the dealer side of things

total inventory deposits/withdrawals/ into dealer: nil oz

we had 0 deposits into the customer account

 

i) JPMorgan:  zero

*** JPMorgan for most of 2017 and in 2018 has adding to its inventory almost every single day.

JPMorgan now has 135 million oz of  total silver inventory or 54% of all official comex silver.

JPMorgan did not add any silver into its warehouses (official) today.

total deposits today:  nil oz

we had 3 withdrawals from the customer account;

i) Out of brinks 2,999.300 oz

ii) Out of CNT::  63,331.230 oz

iii) Out of Scotia:  107,279.480 oz

total withdrawals; 173,610.010  oz

we had 0 adjustments

 

total dealer silver:  59.419 million

total dealer + customer silver:  252.110 million oz

The total number of notices filed today for the March. contract month is represented by 101 contract(s) FOR 505,000 oz. To calculate the number of silver ounces that will stand for delivery in March., we take the total number of notices filed for the month so far at 4828 x 5,000 oz = 24,140,000 oz to which we add the difference between the open interest for the front month of Mar. (499) and the number of notices served upon today (101 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the March contract month: 4828(notices served so far)x 5000 oz + OI for front month of March(499) -number of notices served upon today (101)x 5000 oz equals 26,130,000 oz of silver standing for the March contract month. 

We GAINED an additional 33 contracts or 165,000 additional silver oz will stand for delivery at the comex as somebody was in urgent need of physical silver.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

ESTIMATED VOLUME FOR TODAY: 52,584 CONTRACTS

CONFIRMED VOLUME FOR YESTERDAY: 100,143 CONTRACTS

YESTERDAY’S CONFIRMED VOLUME OF 100,143 CONTRACTS EQUATES TO  502 MILLION OZ OR 71.7% 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 RISES TO -2.08% (MARCH 12/2018)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.50% to NAV (March 12/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -2.08%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.50%/Central fund of Canada’s is still in jail but being rescued by Sprott.
Sprott WINS hostile 3.1 billion bid to take over Central Fund of Canada

(courtesy Sprott/GATA)

3.SPROTT CEF.A FUND (FORMERLY CENTRAL FUND OF CANADA): NAV RISES TO -3.03%: NAV 13.67/TRADING 13.28//DISCOUNT 3.13.

END

And now the Gold inventory at the GLD/

MARCH 12/WITH GOLD DOWN $3.00/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 833.73 TONNES

MARCH 9/WITH GOLD UP $2.25/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 833.73 TONNES

March 8/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 833.73 TONNES

MARCH 7/WITH GOLD DOWN 8.00/A SLIGHT CHANGE IN GOLD INVENTORY AT THE GLD/A WITHDRAWAL OF .25 TONNES TO PAY FOR FEES//INVENTORY RESTS AT 833.73 TONNES

MARCH 6/WITH GOLD UP $15.60/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 833.98 TONNES

March 5/WITH GOLD DOWN $4.10/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 833.98 TONNES

MARCH 2/WITH GOLD UP $18.70/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 833.98 TONNES

March 1/WITH GOLD DOWN ANOTHER $12.30/A HUGE CHANGE IN GOLD INVENTORY/ A DEPOSIT OF 2.96 TONNES/INVENTORY RESTS AT 833.98 TONNES

FEB 28/WITH GOLD DOWN ANOTHER 70 CENTS/NO CHANGE IN GOLD INVENTORY/INVENTORY RESTS AT 831.03 TONNES/.

feb 27/WITH GOLD DOWN $13.80 WE HAD NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 831.03 TONNES

FEB 26/WITH GOLD UP $2.40/WE HAD ANOTHER INVENTORY GAIN/THIS TIME 1.77 TONNE ADDITION TO THE GLD INVENTORY/INVENTORY RESTS AT 831.03 TONNES/WE HAVE HAD 5 INCREASES IN THE PAST 6 TRADING GOLD SESSIONS/

FEB 23/WITH GOLD DOWN $1.15, WE HAD A GOOD INVENTORY GAIN OF 1.47 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 829.26 TONNES

FEB 22/WITH GOLD UP 90 CENTS AGAIN TODAY, WE HAD NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 827.79 TONNES

FEB 21/ WITH THE 90 CENT GAIN WE HAD ANOTHER DEPOSIT OF 3.15 TONNES OF GOLD INTO THE GLD INVENTORY/INVENTORY RESTS TONIGHT AT 827.79 TONNES

Feb 20/WITH GOLD DOWN BY $24.25, THE CROOKS DECIDED THAT THEY HAD BETTER RETURN (DEPOSIT) 3.34 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS TONIGHT AT 824,64 TONNES

Feb 16/WITH GOLD UP BY 25 CENTS, THE CROOKS DECIDED AGAIN TO RAID THE COOKIE JAR BY WITHDRAWING 2.36 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 821.30 TONNES

Feb 15/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 823.66 TONNES

Feb 14/AN ADDITIONAL OF 2.95 TONNES OF GOLD INTO GLD WITH THE HUGE GAIN OF 27.40 IN PRICE/INVENTORY RESTS AT 823.66 TONNES

Feb 13/WITH GOLD UP $3.40 WE HAD NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 820.71 TONNES

Feb 12/STRANGE!!WITH GOLD RISING BY 12.00 DOLLARS, THE CROOKS DECIDED AGAIN TO WITHDRAW 5.6 TONNES OF GOLD FOR EMERGENCY USE ELSEWHERE/INVENTORY RESTS AT 820.71 TONNES

Feb 9/AGAIN WITH HUGE TURMOIL ON THE MARKETS, THE CROOKS WITHDREW 2 TONNES OF GOLD FROM THE GLD INVENTORY/INVENTORY RESTS AT 826.31 TONNES

Feb 8/DESPITE THE GOOD GAIN IN PRICE FOR GOLD TODAY/THE CROOKS REMOVED .96 TONNES FROM THE GLD INVENTORY/INVENTORY RESTS AT 828.31 TONNES

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

MARCH 12/2018/ Inventory rests tonight at 833.73 tonnes

*IN LAST 340 TRADING DAYS: 107,41 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 270 TRADING DAYS: A NET 48.89 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.

end

Now the SLV Inventory

MARCH 12/WITH SILVER DOWN 8 CENTS/A BIG CHANGES IN SILVER INVENTORY AT THE SLV/ A DEPOSIT OF 943,000 OZ/INVENTORY RESTS AT 319.012 MILLION OZ/

MARCH 9/WITH SILVER UP 21 CENTS, NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.069 MILLION OZ/

March 8/WITH SILVER DOWN 1 CENT TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.069 MILLION OZ/

MARCH 7/WITH SILVER DOWN 27 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.069 MILLION OZ/

MARCH 6/WITH SILVER UP 38 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.069 MILLION OZ/

March 5/WITH SILVER DOWN 11 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.069 MILLION OZ/

MARCH 2/WITH SILVER UP 23 CENTS: A HUGE 1.479 MILLION OZ WAS ADDED TO SILVER’S INVENTORY/INVENTORY RESTS AT 318.069 MILLION OZ/

March 1/WITH SILVER DOWN 11 CENTS TODAY/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.590 MILLION OZ./

FEB 28/WITH SILVER DOWN 5 CENTS TODAY/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.590 MILLION OZ/

feb 27/WITH SILVER DOWN 17 CENTS/NO CHANGE IN SILVER INVENTORY/INVENTORY RESTS AT 316.590 MILLION OZ

FEB 26/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.590 MILLION OZ/

FEB 23/WITH SILVER DOWN 10 CENTS TODAY, WE HAD ANOTHER HUGE ADDITION OF 1.315 MILLION OZ/INVENTORY RESTS AT 316.590 MILLION OZ/

fEB 22.2018/WITH SILVER DOWN  1 CENT TODAY, WE HAD NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 315.271 MILLION OZ/

FEB 21/WITH SILVER UP 15 CENTS TODAY, WE HAD A GOOD SIZED INVENTORY ADDITION OF 1.226 MILLION OZ/INVENTORY RESTS AT 315.271 MILLION OZ/

Feb 20/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 314.045 MILLION OZ

Feb 16/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 314.045 MILLION OZ/

Feb 15/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 314.045 MILLION OZ/

Feb 14./NO CHANGE IN SILVER INVENTORY DESPITE THE HUGE RISE IN PRICE/INVENTORY RESTS AT 314.045 MILLION OZ

Feb 13./NO CHANGE IN SILVER INVENTORY TODAY/INVENTORY RESTS AT 314.045 MILLION OZ/

Feb 12/AGAIN, WITH TODAY’S HUGE RISE IN SILVER PRICE, IN TOTAL CONTRAST TO GOLD: NO CHANGE IN SILVER INVENTORY/INVENTORY RESTS AT 314.045 MILLION OZ/

Feb 9/AGAIN WITH TURMOIL ON THE MARKETS, STRANGELY IN TOTAL CONTRAST TO GOLD: NO CHANGE IN SILVER INVENTORY/INVENTORY RESTS AT 314.045 MILLION OZ/

Feb 8/DESPITE THE TURMOIL TODAY AND A PRICE RISE: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 314.045 MILLION OZ/

MARCH 12/2018: A BIG CHANGE TO SILVER INVENTORY/ A DEPOSIT OF 943,000 OZ

Inventory 319.012 million oz

end

6 Month MM GOFO 1.99/ and libor 6 month duration 2.27

Indicative gold forward offer rate for a 6 month duration/calculation:

G0FO+ 1.99%

libor 2.27 FOR 6 MONTHS/

GOLD LENDING RATE: .28%

XXXXXXXX

12 Month MM GOFO
+ 2.38%

LIBOR FOR 12 MONTH DURATION: 2.54

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.16

GOLD LENDING RATES FALLING TO APPROACH ZERO AS PHYSICAL GOLD IS SCARCE/GOFO  RATES RISING

end

 

Major gold/silver trading /commentaries for MONDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

Gold Protects As Cashless Society Threatens Vulnerable

Gold Protects As Cashless Society Threatens Vulnerable

– Swedish authorities concerned cashless society is happening ‘too quickly’ and heading into ‘negative spiral’
– Only 25% of Swedes paid in cash at least once a week in 2017, 36% never use cash
– Cash usage in Sweden falling both as share of GDP and in nominal terms
– Sweden may be world’s first economy to introduce a cryptocurrency, the e-krona
– Cashless is not a disincentive for illegal drug trade, Guardian finds
– Gold in safe jurisdictions will protect against raids on cash and wealth

The total value of cash payments in Sweden is just 2% of GDP. Two-thirds of people rarely use cash and even homeless Big Issue sellers are accepting cards. These are the statistics of Sweden’s cashless society. A country, which is often touted as the most cashless on earth, is in part proud of these numbers but also wonders if it might be too much too soon.

A campaign, called Kontantupproret (“the cash insurgency), demands that the future of money should be a democratic decision, not left just to banks and businesses. Many believe that the cashless society is leaving the old, unbanked and vulnerable behind.

The concerns are so great that a parliamentary review has been launched and central bank, Riksbank, is planning on launching a study into the unintended consequences of the cashlesss society, this summer.

“If this development with cash disappearing happens too fast, it can be difficult to maintain the infrastructure” for handling cash, said Mats Dillen, the head of the parliamentary review. ““One may get into a negative spiral which can threaten the cash infrastructure,” Dillen said.

Banks are now so loathed to work with cash that Riksbank Governor Stefan Ingves has said they may consider forcing banks to provide cash to customers. But this is tricky when the wider economy is no longer set up to accept it.

As we have highlighted before, going cashless may make sense to many businesses in terms of keeping costs down but it makes the most sense to the government and banks who gain full oversight and access to your money once it can only be kept in digital form.

This cashless dream is likely to turn into a nightmare. Not only for the vulnerable but also for anyone who likes to have the final say on what happens to their wealth.

Sweden’s Gone Too Far

The value of cash in circulation has fallen to its lowest level since 1990 and is more than 40% below its 2007 peak. The extreme push for cashless has seen the amount of cash in circulation fall, especially dramatically in 2016 and 2017.

Strangely the central bank are now looking into launching the e-krona, a digital currency which will work as a complement rather than a replacement to cash. The jury is out on whether or not this is as much a PR stunt as it is a further ‘solution’ for the cashless economy.

Sweden may have moved too quickly as protest groups are beginning to rally against the cashless economy. Some declare the refusal to accept cash as undemocratic whilst the elderly are being rapidly locked out of services that would have previously been open to cash payments.

If you have the means to pay in the legal tender (in this case krone) then who is to say how you can pay? After all, currently cash is not illegal, so why are so many people being made to feel like they’re wrong to use it?

Going cashless arguably increases the number of vulnerable economic participants. This isn’t meant in reference to those who are unbanked. In fact, the opposite: Those who are currently society’s least vulnerable – those with savings, investment portfolios and a good banking relationship – could become extremely vulnerable.

How do you go cashless without a bank?

There is also the issue of those who are simply unable to offer anything other than cash – the unbanked.

“The beauty of cash is that it’s a direct and simple transaction between all kinds of different people, no matter how rich or poor,” financial writer Dominic Frisby told The Guardian. “If you begin to insist on cashlessness, it does put pressure on you to be banked and signed up to financial system, and many of the poorest are likely to remain outside of that system. So there is this real danger of exclusion.”

In Sweden, the unbanked is not a major issue. But, in the likes of America where 7% are unbanked and in developing countries it is a problem.

Banks and governments are keen to ‘on-board’ these customers as easily as possible, but in some cases it is just not worth it.

“Billions of poor people in the developing world depend on cash to buy goods for very small amounts, often mere cents,”  Srinivasan Sivabalan wrote in Bloomberg. “It may be too costly to host those transactions on a network. That could create a second-class citizenry of people who don’t have equal access to banking services.”

Criminalising cash thanks to its criminal links

One of the major arguments against cash, by governments, is that it facilitates illegal activities such as money laundering and the drug trade. Last year, we highlighted the Swedish authorities’ role in making cash an almost criminal possession:

“In general, the rule of thumb in Scandinavia is: ‘If you have to pay in cash, something is wrong,’” writes Mikael Krogerus for Credit Suisse. Arvidsson explains that “At the offices which do handle banknotes and coins, the customer must explain where the cash comes from, according to the regulations aimed at money laundering and terrorist financing,” The hassle, for the depositor, is enough to make them go cashless.

Here in the UK, cash as a criminal’s payment of choice has been widely touted but it might not be so relevant. The Guardian spoke to several individuals and businesses about how cashless could or was impacting them. One of them was a drug dealer who fundamentally disagreed that the push for cashless would stop drug dealing:

People always go on about how the cashless society will spell the end of drug dealing but although I started selling for cash on the street, my trade has been entirely online for the last couple of years at least. There are different ways customers can pay for drugs on the darknet. They can use Bitcoins, localbitcoins, virtual private networks or [an operating system called] Tails. Buying on the darknet is more risky for dealers than customers.

Compared to selling on the street, the darknet is easier and safer for me – and also more profitable because I sell in bulk rather than dealing with individual pills and small bags of weed. And because I’m selling in bulk, my prices are lower than when I dealt on the street, so it’s a win-win.

I’ve heard some people say the darknet is the next generation of drug dealing. But from where I’m looking, it’s this generation’s way of buying drugs. Cash never comes anywhere near buyer or seller, so all the government’s promises that the cashless society would outlaw drug dealing are a lie.

Making the stronger, weaker. 

By demanding one pays just with digital cash – by card, by digital currency etc. then you are demanding that a person store their wealth with a counterparty.

Of course, the majority of us do this for many elements of our wealth, especially that which we use for day-to-day expenses. But, currently we have the option to hold some in cash and some in digital form. If we go cashless then we can no longer do this.

This makes us vulnerable to huge forces, beyond our control. Namely, malicious hackers and the banks with their all-too-easy-to-invoke bail-in policies.

As interest rates turn negative and the risk of bail-ins grows closer by the day, holding cash appears increasingly attractive but also unattractive for those politicians and bankers who want an easy way out of another financial crisis.

Physical assets such as gold and silver, when held in segregated, allocated accounts cannot fall victim to these sticky fingered forces. As Dr. Constantin Gurdgiev reminds us:

Cash and monetary assets, such as gold, cannot be expropriated or bailed-in as long as they are held in physical form and under proper storage. Cashless accounts amplify the importance of monetary assets, such as gold, in fulfilling the function of being safe havens against systemic risks – risks that are associated with high probability of Government expropriation.

Once all of your money is in the digital banking system you are immediately vulnerable. You can get ready for it to be frozen, taken to fund a bail-in and even taxed. And in the meantime, enjoy governments, banks and possibly large corporations knowing what you’re spending your money on.

What’s the alternative?

Of course, if you find yourself in Sweden or any other country pushing the cashless agenda you may feel there is little you can do to ‘opt out’ of the new regime.

There is one thing you can do and that’s in regard to your savings. Of course, your day to day spending money will have to be in the form of fiat-based cashless payments but what you decide to keep in the bank in the short-term does not have to be cash.

Cash and other forms of intangible assets are difficult to protect in this digital era.

Dostoevsky wrote, ‘Money is coined liberty’. Sadly this only remains true for one form of money: gold and silver. It is no longer the case for cash. History shows multiple attempts of wealth confiscation and restrictions on freedom, each time individuals and governments have returned to gold and silver in order to protect their savings and their privacy.

The role of precious metals in a cashless society are key and investors should remember the importance of diversification and holding assets, under direct ownership, outside of the vulnerable and exposed banking system.

Recommended reading 

The Alternative Fact of the Cashless Society

Cashless Society – Risks Posed By The War On Cash

Threats Posed By “Bank Holidays” and “Cashless Society”

News and Commentary

Stocks in Japan, South Korea surge on news of Trump-Kim meeting (MarketWatch.com)

Stocks Rise in Asia on Trump-Kim Summit; Yen Drops (Bloomberg.com)

Gold dips as dollar firms amid hopes for easing U.S.-N.Korea tensions (Reuters.com)

Stocks, Bonds Rise as Trump Signs Off on Tariffs (Bloomberg.com)

U.S. Household Debt Rose Last Quarter at Fastest Rate Since 2007 (Bloomberg.com)


Image source: Bloomberg

Hugo Salinas Price: Without trade deficits, U.S. dollar can’t be world reserve currency (Plata.com.mx)

Reuters exclusive: Five banks open up trillion-dollar gold club (Reuters.com)

Trump’s Historic Bet on Kim Summit Shatters Decades of Orthodoxy (Bloomberg.com)

ECB Assumes Final QE Push Totaling 30 Billion Euros (Bloomberg.com)

Hungarian National Bank Decides to Bring Gold Reserves Back Home (HungaryToday.hu)

Gold Prices (LBMA AM)

09 Mar: USD 1,319.35, GBP 955.21 & EUR 1,072.50 per ounce
08 Mar: USD 1,325.40, GBP 955.08 & EUR 1,070.39 per ounce
07 Mar: USD 1,332.50, GBP 960.07 & EUR 1,071.86 per ounce
06 Mar: USD 1,324.95, GBP 957.01 & EUR 1,074.00 per ounce
05 Mar: USD 1,326.30, GBP 958.78 & EUR 1,075.63 per ounce
02 Mar: USD 1,316.75, GBP 955.70 & EUR 1,071.04 per ounce
01 Mar: USD 1,311.25, GBP 953.80 & EUR 1,075.75 per ounce

Silver Prices (LBMA)

09 Mar: USD 16.49, GBP 11.92 & EUR 13.40 per ounce
08 Mar: USD 16.48, GBP 11.89 & EUR 13.31 per ounce
07 Mar: USD 16.65, GBP 12.01 & EUR 13.42 per ounce
06 Mar: USD 16.62, GBP 11.96 & EUR 13.41 per ounce
05 Mar: USD 16.51, GBP 11.95 & EUR 13.42 per ounce
02 Mar: USD 16.45, GBP 11.92 & EUR 13.36 per ounce
01 Mar: USD 16.32, GBP 11.87 & EUR 13.39 per ounce


Recent Market Updates

– London Property Sees Brave Bet By Norway As Foxtons Profits Plunge
– Gold Does Not Fear Interest Rate Hikes
– RaboDirect Closing – Gold May Protect From Irish Banks Going “Belly Up Again” – Finuncane
– Silver bullion will likely outperform gold bullion going forward
– Gold $10,000? Goldnomics Podcast Quotations and Transcript
– Trump Risks Trade and Currency Wars – Protectionism and Economic War Loom
– Four Key Themes To Drive Gold Prices In 2018 – World Gold Council
– Is The Gold Price Going To $10,000? (Goldnomics Podcast 3)
– Gold Corridor From Dubai to China Sought By China
– Digital Gold Provide the Benefits Of Physical Gold?
– Weekly Briefing: Currency Wars – ECB Warns Re Trump, Russia and Turkey Buy Gold and BOE Bitcoin Warning
– Russian Central Bank Buys Gold – 600,000 Ounces Or 18.7 Tons In January As Venezuela Launches ‘Petro Gold’
– Bitcoin or British Pound ‘Pretty Much Failed’ As Currency?

janskoyles
END

Andrew Maguire’s Kinesis money which is a “bitcoin” but backed 100% by allocated gold and silver is set to go.

it think it would be a great idea to look at this!

please read at:  https://kinesis.money/#/

(Andrew Maguire)

Andrew Maguire

2:57 PM (1 hour ago)
to me

Harvey

Here It is my friend!  https://kinesis.money/#/ Please let everyone know.

Let catch up on Monday if you have time. We have billions in the hopper ready to be allocated on the 1st day of trading. The paper market days are over.

Warm regards

Andy

end.

THE FOLLOWING CAME FROM KOOS JANSEN:

YOU WILL NOTE THAT FOR THE FIRST TIME EVER CHINA EXPORTED GOLD TO LONDON.

THE QUESTION IS WHY?

I ASKED MY GOOD FRIEND  REG HOWE FOR HIS THOUGHTS ON THIS AND WE AGREE THAT THERE ARE TWO POSSIBILITIES:  1) THAT THERE IS EXTREME SHORTAGE IN LONDON AND A MAJOR BANK COULD NOT DELIVER UPON ALONG OVER THERE..  CHINA WOULD BE ASKING FOR A BIG QUID PRO QUO FOR PROVIDING THE NECESSARY PHYSICAL.  (IT MAKES SENSE IN THE FACT THAT GOLD IS IN BACKWARDATION IN LONDON)

2. TO HELP IN THE FACILITATION OF THE NEW OIL FOR YUAN FOR GOLD NEW FORMAT OR SOME FUTURE MEASURE THAT CHINA WILL REQUIRE OR AT LEAST BENEFIT FROM ADDITION PHYSICAL LIQUIDITY IN LONODN..

REGARDLESS, IT SHOWS SCARCITY OVER THERE.

FROM REG HOWE TO ME:

“Have read speculation that it may have to do with the mechanics of settling the new oil and gold contracts in physical.  More generally, I would guess it’s one of two things: (1) Chinese help in containing some serious stress in the gold market due to lack of physical, e.g., some central bank or major bullion bank unable to deliver, in which case there is likely a big quid pro quo; or (2) a positioning to facilitate some (other) future measure by China that will require or at least benefit from additional physical liquidity in London. In any event, seems to be more evidence of severe shortage of physical in London, otherwise they would just buy it there at today’s suppressed prices.”

END

 

Alabama becomes the 37th state to exempt sales tax on gold and silver bullion as well as coins

(courtesy GATA>Numismatic News.Iola Wisconsin)

 

Alabama exempts gold and silver bullion and coins from sales tax

 Section: 

ICTA Wins Another One for Coin Buyers

By Dave Harper
Numismatic News, Iola, Wisconsin
Thursday, March 8, 2018

The Industry Council for Tangible Assets has notched another sales tax win.

Congratulations.

Alabama becomes the 37th state to exempt sales of gold, silver, platinum, and palladium bullion and money, ICTA’s David Crenshaw reports.

Numismatic commerce can blossom thanks to Gov. Kay Ivey. She signed into law Senate Bill 156 on March 6 to create a sales and use tax exemption on U.S. coins and currency and precious metals bullion sales.

Of course she isn’t the only one who deserves the high praise of collectors.

“The bill’s author, Sen. Tim Melson, along with its House sponsor, Rep. Ron Johnson, championed the bill through the legislature,” said Phil Darby (J&P Coins and Currency in Helena).

“Alabama coin businesses and collectors owe them a debt of gratitude,” Darby said. …

… For the remainder of the report:

http://www.numismaticnews.net/buzz/icta-wins-another-one-coin-buyers

END

Ralph Benko explains beautifully by the USA had continual trade deficits in order to maintain its status as the world’s reserve currency.  The USA exported paper dollars which cost them a few pennies and got real goods for that paper money but this occurred with a curse..the USA manufacturers were decimated.  Now Trump is attempting to stop this..

 

a good read//

 

(Ralph Benko/GATA)

 

Ralph Benko: Trade deficits are the price of issuing the world reserve currency

 Section: 

8:30p ET Sunday, March 11, 2018

Dear Friend of GATA and Gold:

Financial writer and gold standard advocate Ralph Benko this week joined those explaining that huge trade deficits are inevitable for any country that enjoys the “exorbitant privilege” of issuing the world reserve currency.

Benko writes:

“World War II — in which my heroic father Max Benko fought along with millions of others — left America relatively unscathed. After V-Day our allies and our vanquished enemies’ economies lay in shambles. We could (and did) give ourselves a treat while extending an invisible helping hand — one much greater than the Marshall Plan — to war-torn Europe and Japan.

“How? After World War II, the world, led by America, entered into an arrangement called Bretton Woods. This made the U.S. dollar the world’s ‘reserve currency.’

“In practice, Bretton Woods meant that Americans could consume more than we produce — an exorbitant privilege — by exporting dollars rather than goods. How, exactly, did that work? ….

“As American economist Barry Eichengreen summarized: ‘It costs only a few cents for the Bureau of Engraving and Printing to produce a hundred-dollar bill, but other countries had to pony up $100 of actual goods in order to obtain one.’

“That privilege, which made great sense during the period immediately after World War II, became a curse.

“How did our ‘exorbitant privilege’ transform into a curse? By inequitably prejudicing our manufacturers.

“The key element — the reserve currency status of the dollar — of the Bretton Woods ‘Calvinball’ monetary treaty remains in place. Time to end that … as Donald Trump seems to almost preternaturally intuit.”

Benko’s commentary is headlined “Exit Gary Cohn. Enter Lewis Lehrman, Steve Forbes, or Larry Kudlow?” and it’s posted at Forbes here:

https://www.forbes.com/sites/ralphbenko/2018/03/09/exit-gary-cohn-enter-…

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee
CPowell@GATA.org

end


 _____________________________________________________________________________________

Your early MONDAY 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 6.3277  /shanghai bourse CLOSED UP 19.53 POINTS OR 0.59%  / HANG SANG CLOSED UP 598.12 POINTS OR 1.93%
2. Nikkei closed UP 354.83 POINTS OR 1.65% /USA: YEN FALLS TO 106.53/  

3. Europe stocks OPENED DEEPLY IN THE GREEN EXCEPT LONDON     /USA dollar index FALLS TO 90.08/Euro RISES TO 1.2309

3b Japan 10 year bond yield: FALLS TO . +.053/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 106.53/ 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:: 61.65  and Brent: 65.16

3f Gold DOWN/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 FALLS TO +.636%/Italian 10 yr bond yield UP to 2.023% /SPAIN 10 YR BOND YIELD DOWN TO 1.423%

3j Greek 10 year bond yield FALLS TO : 4.184?????????????????

3k Gold at $1315.60 silver at:16.46     7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 16/100 in roubles/dollar) 56.82

3m oil into the 61 dollar handle for WTI and 64 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 106.53 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 0.9502 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1685 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now POSITIVE territory with the 10 year FALLING to +0.636%

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 2.896% early this morning (THIS IS DEADLY TO ALL MARKETS). Thirty year rate at 3.154% /

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

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

Global Markets Rally, S&P Back Over 2,800 On “Goldilocks” Mood Ahead Of Treasury Deluge

The “goldilocks” mood that was unleashed after Friday’s jobs report (high growth, low inflation) has spread around the globe, sending Asian and European markets higher as trade-war concerns took a back seat to economic optimism. The dollar slipped and Treasuries held strady even as the US Treasury prepares to sell $145 billion in debt today (including both 3Y and 10Y Paper), while most commodities fell.

“Friday’s U.S. employment data was about as perfect a set of figures as you can get from a policy maker’s point of view. The increase in jobs was nothing short of amazing,” said ACLS Global’s Marshall Gittler. “In other words, it was a ‘Goldilocks’ report:  not too hot, not too cold, just right.”

“Our customers are still bullish,” Chris Brankin, chief executive officer at TD Ameritrade Singapore, told Bloomberg TV. “You saw the jobs report last Friday, which was a perfect scenario — you had an uptick in wages, but not too much. Investors have taken that opportunity to buy the market dips and we look for the bull market to continue.”

European shares shot up across the board, following their Asian counterparts, while emerging market currencies strengthened as investors bought up so-called riskier assets and sold safe haven securities such as gold and government bonds. After the S&P surged 1.7% on Friday – its second best day of the year – S&P futures have continued to levitate overnight, and are back above 2,800 and fast approaching their late January all time highs of 2,883.

The Stoxx Europe 600 Index rose for a sixth day, poised for the longest winning streak since October as utility companies set the pace following a bid by EON for RWE’s Innogy. Germany’s DAX led gains in Europe, rising 0.9% while MSCI’s world equity index hit a two-week high. Concerns over tariffs have been weighing on European stocks, with the main European stock index hitting a seven-month low at the start of the month. It has recovered somewhat from that trough to rise 0.3% on Monday.

Earlier, the MSCI Asia-Pacific ex-Japan Index climbed 1.4 percent, poised for a third session of gains. South Korea rose 1%, while Australia’s main index added 0.7 percent, boosted by mining shares on news that Australia could be exempt from new U.S. trade tariffs on steel and aluminum imports.  Hong Kong stocks climbed with other Asian markets after Friday’s U.S. jobs report showed an increase in hiring without rapid wage gains: the Hang Seng gained 1.9%, its third day of gains, and the highest since Feb. 5. The Hang Seng China Enterprises Index jumped 2.1%, also up for third session, while on the maindland, the Shanghai Composite added 0.6% and the ChiNext Index of smaller shares rose 1.4%.

In global FX, investors shifted their focus to politics sending the Aussie higher after the country secured an exemption from U.S. tariffs on steel and aluminum and as politicians from a wide range of other countries joined the chorus to also be on the list of Trump tariff exemptions. Meanwhile, as noted last nightthe yen jumped after Japan’s Finance Minister Taro Aso refused to step down despite news that his name and that of Prime Minister Shinzo Abe were removed from documents connected with a land-sale scandal, creating uncertainty around the future of Abenomics. The advance however was pared after Aso said he won’t resign.

Commenting on the USDJPY, Masashi Murata, a currency strategist at Brown Brothers Harriman in Tokyo said that “The theme for 2018 is the risk of the dollar-yen breaking 100,” adding that the yen above that level “wouldn’t look excessive from the perspective of its fundamentals.” Separately, Goldman analysts said that the BOJ and the Japanese government have “very limited” policy options for reining in yen appreciation, and they are most likely to take a wait-and-see stance until the latest round of gains comes to an end.

Investors had trimmed holdings of yen last week on news U.S. President Donald Trump was prepared to meet with North Korean leader Kim Jong Un, a potential breakthrough in nuclear tensions in the region. U.S. officials on Sunday defended Trump’s decision, saying the move was not just for show and not a gift to Pyongyang.  “Now the U.S. is back to goldilocks at least for now, the tariffs are less severe, and Kim and Trump are to meet,” said Shane Oliver, Sydney-based chief economist at AMP.  “We still expect more volatility this year as many of these issues have further go run, but the broad trend in shares likely remains up.”

The dollar edged lower a second day as markets digested Friday’s jobs report, which kept stocks in Asia and Europe underpinned.

In geopolitical news, North Korea reportedly wants a peace treaty and to build ties with US, while its leader Kim also wants a US embassy in Pyongyang.

In Brexit news, UK and EU companies reportedly could face an additional GBP 58bln in annual costs in the event of a no-deal Brexit. Meanwhile, UK consumer spending suffered its weakest start to the year since 2012, according to data compiled by Visa.

In rates, the yield on 10-year Treasuries climbed less than one basis point to 2.90%,the highest in more than two weeks. Germany’s 10-year yield dipped one basis point to 0.64%, while Britain’s 10-year Gilt rose less than one basis point to 1.493 percent.

Today, US rates traders will have a very busy day with the US set to sell $145BN in sells 3- and 6-month bills, as well as a 3-year notes and 10-year notes reopening. Big concessions into the auctions are expected to help soak up the massive supply. As a reminder the last time that the market faced a 3y and 10y auction on the same day last year Treasuries sold off following weak demand in the latter auction.

Oil prices pared back gains seen on Friday with WTI (-0.5%) and Brent (-0.6%) seen lower amid concerns of rising US output looming in the market despite a slowdown in rig drilling activity recorded at the back end of last week. In the metals complex, following the US steel and aluminium tariffs, Chinese iron ore future fell for a 3rd straight session hitting near four-month lows closing down 2.6%. The steelmaking raw materials are under pressure from softer demand and high product inventories held by trading companies. The WSJ reported that OPEC is reported to be divided regarding views on the right price of oil with Iran said to prefer USD 60/bbl, while Saudi Arabia would prefer prices to be at USD 70/bbl. There were also reports that Iran Oil Minister Zanganeh stated that OPEC could agree in June to begin relaxing oil output cuts for 2019.

Bulletin Headline summary from RanSquawk

  • DAX outperforms amid multi-billion revamp in German utility sector.
  • USD-index hovers around 90, having trimmed earlier losses.
  • Looking ahead, highlights include the Eurogroup meeting, 3- and 10-year note auctions from the US

Market Snapshot

  • S&P 500 futures up 0.3% to 2,798.25
  • STOXX Europe 600 up 0.3% to 379.19
  • MXAP up 1.6% to 178.46
  • MXAPJ up 1.4% to 588.82
  • Nikkei up 1.7% to 21,824.03
  • Topix up 1.5% to 1,741.30
  • Hang Seng Index up 1.9% to 31,594.33
  • Shanghai Composite up 0.6% to 3,326.70
  • Sensex up 1.2% to 33,713.20
  • Australia S&P/ASX 200 up 0.6% to 5,996.12
  • Kospi up 1% to 2,484.12
  • German 10Y yield unchanged at 0.649%
  • Euro up 0.2% to $1.2328
  • Italian 10Y yield rose 2.5 bps to 1.753%
  • Spanish 10Y yield unchanged at 1.436%
  • Brent futures down 0.6% to $65.10/bbl
  • Gold spot down 0.3% to $1,320.39
  • U.S. Dollar Index down 0.1% to 89.98

Top Overnight News

  • North Korean leader Kim Jong Un wants to sign a peace treaty and establish diplomatic relations with the U.S., which includes having a U.S. embassy in Pyongyang, Dong-A Ilbo newspaper reports, citing an unidentified senior official at South Korean President Moon Jae-in’s office
  • China’s trade minister Zhong Shan warned that a trade war with the U.S. would bring disaster to the global economy, but said his nation won’t start one and that talks with the Trump administration continue
  • China, Canada and Hong Kong are among the economies most at risk of a banking crisis, according to early-warning indicators compiled by the Bank for International Settlements
  • Add one more thing to the list of worries for the world’s most indebted nation: weakening demand at its bond auctions. While there’s no danger of the U.S. being unable to borrow as much as it needs, over the past two years, the drop-off has been unmistakable
  • Britain may soon start to see the beginning of the end of austerity, as the Chancellor of the Exchequer prepares to announce the smallest deficit in a decade during his Spring Statement on Tuesday
  • London house prices are falling at the fastest pace since the depths of the recession almost a decade ago, with the capital’s most expensive areas seeing the biggest declines, according to a report published by Acadata on Monday

Asia stocks were higher across the board as the region took its first opportunity to react to Friday’s rally on Wall St and jobs data from US where NFP smashed expectations, but wage growth slowed which in turn provided a goldilocks backdrop for stocks. ASX 200 (+0.6%) was led by commodity names after crude rallied over 3% on Friday and PM Turnbull confirmed Australia is to be exempted from US tariffs. Nikkei 225 (+1.6%) outperformed but closed off its best levels as the cronyism scandal continued to haunt PM Abe after Japan’s Finance Ministry confirmed documents had been doctored in a land-sale to a school operator which allegedly used ties to PM Abe’s wife to get a cheap deal on state-owned land. Elsewhere, Hang Seng (+1.5%) and Shanghai Comp. (+0.7%) also gained although the mainland got off to a slow start as US-China trade war concerns somewhat lingered and as participants also mulled over Xi’s power consolidation after China’s legislature voted to formally scrap presidential term limits from its constitution. Finally, 10yr JGBs are flat with demand constrained amid the heightened appetite for risk, while the BoJ were also in the market but kept its Rinban amounts unchanged from the prior.  The PBoC injected CNY 50bln via 7-day reverse repos and CNY 40bln via 28-day reverse repos; the PBoC also set CNY mid-point at 6.3333 (Prev. 6.3451).

As reported last night, Japanese Finance Minister Aso is under pressure to resign over a report regarding alleged favours to a school with connections to the Japanese PM Abe. The prime minister told parliament in February last year that he’d resign if any link emerges between himself or his wife Akie and the land deal.

Top Asian News

  • China Banking Crisis Warning Signal Still Flashing, BIS Says
  • JPMorgan Sees Busiest Mideast Year With IPOs, M&A Driving Deals
  • Japan Finance Minister Under Fire as Abe School Scandal Deepens; Stock Investors Are Nonchalant for Now as Abe’s Scandal Deepens
  • China’s Mystery Russia Oil Partner Seen Delaying $9 Billion Deal

The European cash open mimicked the strong positive sentiment seen in Asia and in the US on Friday following US NFP data beating expectations but wage growth slowing down providing a goldilocks backdrop for stocks. Major bourses are in the green (Euro Stoxx 50 +0.45%) with the exception of the FTSE 100 underperforming weighed down by a strong sterling. DAX 30 is supported by the utilities sector outperforming following reports of RWE (+8.8%) agreeing to swap control of Innogy (+12.9%) for renewable assets with rival E.ON (+5.4%). E.ON has agreed to purchase Innogy from RWE as part of a deal valuing at EUR 20bln, marking one of the largest shake-ups of the European power supply market. This could however place doubt on the deal between Innogy’s Npower and UK listed SSE (-2.2%). Following months of attempted takeover, Melrose (-2.9%) has submitted their final offer to engineering group GKN (+0.8%) of GBP 8.1bln following their previous offer of GBP 7.4bln which GKN described as “fundamentally” undervaluing its business and the approach as “entirely opportunistic”.

Top European News

  • Elkem to Raise $670 Million in Biggest Norway IPO Since 2010
  • May Faces Calls to Retaliate Against Russia After Spy Attack
  • Ruble Is Top Pick for $25 Billion Investor After Czech Bonanza

In FX, it has been a quiet start to the week, but the Greenback is weaker vs all G10 counterparts bar the Loonie, as Usd/Cad hovers above 1.2800 after last Friday’s mixed US and Canadian jobs data (to recap, the former blew away forecasts at 300k+, but latter just missed and would have been negative without part-time workers). The Kiwi is outperforming amidst equity market gains and mostly risk-on trade as it regains 0.7300 status vs the Usd, but Usd/Jpy has pulled back from marginal 107.00+ highs post-NFP to around 106.50 on the land sale scandal involving PM Abe and Finance Minister Aso. Note also, tech resistance around the 21 DMA at 106.79 is capping the pair, but hefty option expiries at 107.00 run off this Thursday and could keep the headline afloat. Aud another relative gainer and firmer within a 0.7845-80 range as Australia negotiates a security deal with the US to avoid aluminium and steel tariffs. Usd/Chf is probing back below 0.9500, Eur/Usd is sitting in a tight band above 1.2300 and Cable is holding between 1.3850-80 ahead of Tuesday’s UK Budget. Back to option expiries, but for today there is 1 bn either side of 1.2300 in Eur/Usd at 1.2275 and 1.2330 and just over 300 mn in Nzd/Usd at 0.7300.

In commodities, oil prices pared back gains seen on Friday with WTI (-0.5%) and Brent (-0.6%) seen lower amid concerns of rising US output looming in the market despite a slowdown in rig drilling activity recorded at the back end of last week. In the metals complex, following the US steel and aluminium tariffs, Chinese iron ore future fell for a 3rd straight session hitting near four-month lows closing down 2.6%. The steelmaking raw materials are under pressure from softer demand and high product inventories held by trading companies. The WSJ reported that OPEC is reported to be divided regarding views on the right price of oil with Iran said to prefer USD 60/bbl, while Saudi Arabia would prefer prices to be at USD 70/bbl. There were also reports that Iran Oil Minister Zanganeh stated that OPEC could agree in June to begin relaxing oil output cuts for 2019.

Looking at the day ahead, as is the norm post payrolls, it’s a quiet start to the week on Monday with the only data of note being the US monthly budget statement for February. Politics should remain at the forefront, however, with Germany’s Chancellor Merkel expected to sign a coalition pact with the Social Democrats in Berlin and Italy’s Democratic Party due to hold a leaders’ meeting to replace Matteo Renzi. EU government officials will also kick off the four-day meeting to discuss  the EU’s Brexit position.

US Event Calendar

  • 10:30am: U.S. to Sell USD45 Bln 6-Month Bills
  • 10:30am: U.S. to Sell USD28 Bln 3-Year Notes
  • 12pm: U.S. to Sell USD51 Bln 3-Month Bills
  • 12pm: U.S. to Sell USD21 Bln 10-Year Notes Reopening
  • 2pm: Monthly Budget Statement, est. $216.0b deficit, prior $192.0b deficit

DB concludes the overnight wrap

So, another week and another hotly anticipated US inflation print for markets to be wary of. In fact, it should be a fairly busy week ahead with plenty of US data despite it being a post payrolls week, bumper Treasury supply which should be a decent test for bond markets and of course unpredictable politics to keep everyone on their toes. Indeed, no doubt the uncertainty fuelled by steel and aluminium tariffs tit-for-tat could continue, while markets will also be waiting for potential further details about President Trump’s meeting with North Korea leader Kim Jong Un. One of the big question marks is where they’ll meet exactly and we can’t help but feel that we could see some sort of Olympics style pitch between nations to host this hotly anticipated event.

On a more serious note the reaction to the proposed meeting has actually been fairly mixed. The optimistic view is that a summit between the US and North Korea could offer a genuine opportunity to reduce tensions on the Korean peninsula, particularly in light of the failures of past agreements. However there appears to be an equal amount of scepticism with some suggesting that it could be an opportunity for North Korea to secure sanctions relief and buy time on nuclear efforts. Only time will tell but it’s clearly a very significant moment for geopolitics globally. Over the weekend CIA Director Mike Pompeo confirmed that the US will be making no concessions to North Korea and that discussions, if they do indeed occur, “will play out over time”.

Back to that big data release for this week, as of this morning the market consensus is for a +0.2% mom headline reading and +0.2% core reading for US CPI on Tuesday. Our US economists expect +0.1% mom and +0.2% mom respectively. The latter should hold at +1.8% yoy should we see that, and in fact our colleagues add that the annual growth rate of core CPI will mechanically rise by around 20bps in the March data release just from annualizing the -10% decline in wireless telephone services.

Meanwhile, also due tomorrow is the Special Congressional election in Pennsylvania which shouldn’t be underestimated as it will likely be seen as a decent bellwether for the prospect of Republicans holding onto majorities in the House and Senate at the November midterms. So that should be interesting. On the same day we’ll have the UK Spring Statement although our rates team and economists aren’t expecting any big policy announcements. The market should instead be focused on the publication of the 2018-19 Gilt remit. You can see a preview of the Statement here. In terms of other snippets, Germany’s Merkel and the Social Democrats are expected to sign a coalition pact today, while Italy’s Democratic Party will also start the search for their new party leader. Brexit related newsflow should also continue with the European Council and European Commission expected to make a statement on Tuesday while the four-day EU ambassadors meeting kicks off today.

All that to look forward to then. Over the weekend it’s actually been fairly quiet for newsflow with the most notable coming from China with the – as expected – announcement that the presidential term limit has been repealed, which in turn will allow President Xi Jingping to in theory hold onto power indefinitely. The other story worth noting is the latest BIS quarterly report which notes that China, Canada and Hong Kong are among those economies most at risk of a banking crisis, based on early warning indicators. The report also pointed towards the dangers of increased passive investing, particularly with regards to “encouraging aggregate leverage”. Elsewhere, on the big protectionist theme reverberating through markets at the moment, China’s trade minister Zhong noted “there are no winners in a trade war…China does not wish to fight a trade war, nor will China initiate one, but we…will resolutely defend the interests of our country”. In Germany, Economy Minister Zypries noted “Trump’s policies are putting the order of a free global economy at risk” and that Europe needs to avoid being divided by Trump’s offer to exempt some countries such as Canada, Mexico and Australia.

So, with the likely highlight for markets this week being Tuesday’s CPI report, it of course follows the softer than expected average hourly earnings data from Friday’s employment report. In fairness, it only just missed consensus as  the unrounded +0.1498% mom compared to expectations for +0.2% mom however downward revisions to prior months meant the annual rate dropped to +2.6% yoy from +2.8% and back to the lowest since November. On the other hand, the other big takeaway from the report was the bumper payrolls number. The 313k print not only smashed expectations for 205k but was also the highest since July 2016. The two prior months were also revised higher by a cumulative 54k. Away from those usual headline grabbers’ one interesting aspect of the report, and which typically flies more under the radar, that our US economists pointed out was the increase in prime-age participation. Fed Chair Powell previously noted in his testimony that still low prime-age labour force participation is one remaining potential source of labour market slack. However, it was noticeable to see this climb four-tenths last month and to the highest since mid-2010. The bottom line is that this could still lend argument to the fact there is still some slack left in the labour market.

All-in-all a bit of a double-edged sword sort of report then. Markets certainly appreciated the goldilocks nature of it with the S&P 500 rallying to a +1.74% gain by the close of play – and touching the highest level since February 1st -and 10y Treasuries climbing to 2.895% (+3.7bps). Fed Funds contracts are now implying odds of just under 25% for 4 rate hikes this year. We’ll of course find out in 9 days time at the next FOMC meeting if the data is enough to support an increase in the median dot to 4. Speaking of bond markets, it’s worth noting that the Treasury market is likely to face a bit of a supply test today as we’ll get both a 3y and 10y auction. As a reminder the last time that the market faced a 3y and 10y auction on the same day last year Treasuries sold off following weak demand in the latter auction.

This morning risk assets are broadly higher in Asia following the positive US lead, with the Nikkei (+1.49%), Kospi (+0.99%), Hang Seng (+1.48%), ASX 200 (+0.55%) and China’s CSI 300 (+0.49%) all up as we type. Markets in Japan have pared back gains slightly following news that Finance Minister Taro Aso is supposedly coming under pressure to quit according to Bloomberg due to his involvement in a scandal related to the sale of public land to a school.

Moving on. In terms of other markets on Friday. The Nasdaq rose +1.79% and to a fresh record high. European equities were broadly higher with the Stoxx 600 up for the fifth straight day (+0.43%) while the DAX was the laggard (-0.07%). Government bonds were weaker with core 10y bond yields up 2-3bp (Bunds & Gilts +1.9bp) while  peripherals slightly underperformed. In FX, the USD dollar index fell 0.10% while the Euro was marginally down and Sterling gained 0.28%. Finally, WTI oil was up for the first time in three days (+3.19% to $62.09/bbl) while precious metals gained slightly.

Away from markets, three unnamed sources told Reuters that ECB staff put forward a scenario to policy makers at last week’s ECB meeting suggesting the bank will end QE this year after winding down for three months followed by a rate increase in the middle of next year. One source noted these are “assumptions…. (and they) don’t have policy relevance because they are not commitments”.  Notably, sources noted the hypothesis was met favourably by policy makers from the Euro area’s richer Northern countries, but less so by the Southern neighbours.

On Friday we also heard from a couple of Fed speakers post the  employment report. The Fed’s Rosengren noted that “I expect that it will be appropriate to remove monetary policy accommodation at a regular but gradual pace – and perhaps a bit faster than the three (rate hikes) envisioned for this year”. He also added that as the labour market continues to tighten “….one would expect to see continued upward pressure on wages”. Elsewhere, the Fed’s Evans noted the payroll report was a “very strong number” and was “looking forward to strong wage growth”. On rates, he noted that he continues to be nervous about inflation running below the Fed’s 2% target and believes “…we have the ability to be cautious”.

With regards to the other economic data on Friday. In the US, the unemployment rate was steady mom at its 17 year low and slightly higher than expected at 4.1% (vs. 4.0%). Elsewhere, the final reading for January wholesale  inventories was revised up 0.1ppt to 0.8%. Factoring in the above, the Atlanta Fed’s estimate of Q1 GDP growth was revised down 0.3ppts to 2.5% saar. In Europe, the January IP was broadly lower than expectations. In Germany, it was -0.1% mom (vs. +0.6% expected) weighted down by lower activity in the construction sector. Notably, annual growth is still solid at +5.5% yoy. France and the UK’s IP were both lower than expected at +1.2% yoy (vs. +3.8% expected) and +1.6% yoy (vs. +1.9% expected) respectively. Elsewhere, Germany’s January trade surplus was less than expected at €17.4bln (vs. €18.1bln) as exports weakened in the month, while the UK’s January trade deficit was -£3.1bln (vs. – £3.4bln expected).

As is the norm post payrolls, it’s a quiet start to the week on Monday with the only data of note being the US monthly budget statement for February. Politics should remain at the forefront, however, with Germany’s Chancellor Merkel expected to sign a coalition pact with the Social Democrats in Berlin and Italy’s Democratic Party due to hold a leaders’ meeting to replace Matteo Renzi. EU government officials will also kick off the four-day meeting to discuss  the EU’s Brexit position.

end

3. ASIAN AFFAIRS

i)MONDAY MORNING/LATE FRIDAY NIGHT: Shanghai closed UP 19.83 POINTS OR 0.59% /Hang Sang CLOSED UP 598.12 POINTS OR 1.93% / The Nikkei closed UP 354.83 POINTS OR 1.63%/Australia’s all ordinaires CLOSED UP 0.53%/Chinese yuan (ONSHORE) closed UP at 6.3277/Oil UP to 61.05 dollars per barrel for WTI and 65.16 for Brent. Stocks in Europe OPENED GREEN EXCEPT LONDON  .   ONSHORE YUAN CLOSED UP AT 6.3277 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.3257 /ONSHORE YUAN TRADING WEAKER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING MUCH STRONGER AGAINST THE DOLLAR . CHINA IS  VERY  HAPPY TODAY (STRONGER CURRENCY GOOD CHINESE MARKETS/BUT TRUMP TARIFFS  INITIATED/ ) 

3 a NORTH KOREA/USA

/NORTH KOREA/USA

 

3 b JAPAN AFFAIRS

 

Last year , we reported to you on the Japanese “kindergarten” scandal.  It roiled Japanese markets for weeks only to be saved by North Korean rockets flying over Japan.  It has now resurfaced and there are reports of altered documents involving Abe’s wife. The tax department also has to answer for this.  The deputy finance minister, Aso is has the tax department reporting to him so he may have to resign and that will put the entire Japanese economic “recovery” in jeopardy

 

(courtesy zerohedge)

Japan Markets Roiled As Moritomo Scandal Returns, Abe May Be Forced To Resign

It was exactly one year ago that the previously unshakeable administration of Japanese Prime Minister Shinzo Abe was rocked by a crisis which prompted some to ask if Abe’s government was on the rocks, and with it – Abenomics: the crisis was not one of bungled economic policies, party in-fighting or any of the other calamities that have brought down Japanese leaders in the past, including Abe’s first administration as prime minister. No, Abe was struggling to shake off a scandal involving a kindergarten.

As we reported last March, Abe had been riding high in the polls and making plans to run for an unprecedented third term as head of the dominant Liberal Democratic Party, when questions first began to be asked about Moritomo Gakuen, a kindergarten operator in Osaka with what was initially described as a conservative curriculum, prompting  the prime minister to declare that he shared many of the philosophies of the school’s president, Yasunori Kagoike.

It would emerge in swift succession that the premier’s wife, Akie Abe, had been named honorary principal of a new school being planned by Kagoike; that the school was being built on land purchased from the government by Moritomo Gakuen for a fraction of its estimated value; that Abe’s wife Akie allegedly donated 1 million yen to the foundation in September 2015 on behalf of her husband, and that the operator’s philosophies imposed upon his young pupils were not just conservative, but tended towards far-right pre-war nationalism. 

The scandal raged for several months, resulting in Abe’s approval rate tumbling, however at the last possible moment, Kim John Un’s ICBM launches successfully distracted the Japanese population, and Abe’s militant response was sufficient for the public to forgive and forget the entire Moritomo incident.

Until now…  because as the Japanese press reported over the weekend, the Moritomo scandal involving PM Abe’s connections with the operators of the right-leaning school implicated in fraud are again roiling markets in Japan.

As NHK reports, while Abe is not the focus of the current investigation and his position remains secure for now, fresh allegations that tax authorities involved may have even fabricated reports in favor of Moritomo could force the resignation of Deputy PM and Finance Minister Aso as the National Tax Bureau reports directly to him.

Specifically, Japan’s Finance Ministry will admit to the Diet on Monday that alterations were made to documents on the controversial state land deal. As we reported a yea ago, the land in Osaka Prefecture was sold to private school operator Morimoto Gakuen in 2016 for only a fraction of its market value. The transaction sparked allegations of favoritism in part because the wife of Prime Minister Shinzo Abe was acquainted with the school operator.

After the scandal came to light last year, the Finance Ministry submitted to the Diet settlement documents for the deal. But, earlier this month, a newspaper alleged that the papers had been altered before being submitted to the Diet. The ministry has since questioned its employees involved in the matter and concluded that changes were made to some wording in the documents.

In reaction to the Morimoto scandal coming back from the dead, six of Japan’s opposition parties will demand Finance Minister Taro Aso step down to take responsibility for the matter, NHK reports. They also plan to demand the government release all related documents and that Nobuhisa Sagawa, who resigned last week as head of the National Tax Agency, be summoned to give testimony at the Diet. He was the ministry’s Financial Bureau chief when the land deal was made.

Meanwhile, the ruling parties are urging the opposition parties, which have been boycotting Diet sessions since last week, to make facts clear through the debate in the Diet.

Meanwhile, analysts have already warned that a resignation by Aso would take the legs out of the current Abe administration, perhaps even forcing the PM to eventually resign as well, and forcing changes at the BOJ.

Furthermore, hitting much closer to home, Kyodo reported that Abe’s wife Akie was among names deleted from altered Finance Ministry documents pertaining to the sale of public land to Moritomo, putting Abe himself in jeopardy.

And one look at Japanese markets shows that investors are starting to get spooked with the USDJPY suddenly sliding taking a hit from concern that deepening of a scandal over alleged favors to a school with connections to Japanese Prime Minister Shinzo Abe may prompt a retreat of Abenomics, said David Lu, director at NBC Financial Markets Asia in Hong Kong…

… while Japanese stocks are paring some of their strong early gains; while the implications of any Aso resignation are hard to fathom at this point, many believe the Nikkei would plunge, and risk-off sentiment could return fast, sending the JPY higher once again.

This, according to Reuters, would be especially the case now, with investors already nervous over possible trade wars and recent stock market volatility.

 

end

c) REPORT ON CHINA

 

Here is how China might retaliate against those tariffs initiated by Trump

(courtesy zerohedge)

“We Will Not Sit Idly By” – Here’s How China Might Retaliate Against US Tariffs

As we highlighted last night, China has threatened to respond to President Trump’s steel and aluminum tariffs with unspecified actions that Chinese officials said could “seriously hurt the international trade order.”

And as Axios warned in a piece published Friday, investors shouldn’t interpret their lack of details as a sign of an empty threat: Rather, China actually has far more leverage with which to retaliate against the Trump tariffs than it did when George W Bush briefly imposed tariffs on imported steel in the early aughts. Back then, Bush rescinded the tariffs, it’s widely believed, because the European Union threatened targeted sanctions that would hurt swing states like Michigan and Florida – states that Bush needed to carry during his 2004 campaign. Unsurprisingly, the EU is embracing a similar strategy this time around.

But today, China’s ability to retaliate now rivals that of the entire European Union – which means this could be the last time the US can “set the agenda” in terms of its relationship with its largest economic rival.

Back in 2002, China produced less than 200 million tons of steel. As of 2016, China could churn out 1 billion tons, forcing Beijing to pare back production or risk a destabilizing glut.

China

Given President Xi Jinping’s decision to abolish term limits, effectively clearing the way for him to serve as dictator for life, the country has the wherewithal and the political will to strike back. Mark Wu, a professor of international trade law at Harvard, said the country needs to do something – if only to save face.

“China has to do something [in response to Trump’s tariffs] just to signal its own resolve,” Wu said.

However, as Wu said, they likely won’t retaliate with the full brunt of their capability, as China would probably be content with watching the Westerners fight it out among themselves.

Ahead of Thursday’s announcement, Zhang Yesui, a top diplomat and former ambassador to the U.S., said:

“China does not want a trade war with the US … [But] we will not sit idly by and will take necessary measures if the US hurts China’s interests.”

Since the earliest days of his campaign, Trump has bashed China, citing the US’s massive trade deficit with China as a sign that naive leaders and the “free trade” globalist establishment were allowing the US to be ripped off…all to benefit the coffers of wealthy elites. Meanwhile, in a sign that the US could be softening its stance, the Trump administration has reportedly asked China for a plan to shave $100 billion off the US’s trade deficit with the No. 2 economy (also known as China’s trade surplus).

Trade

As Axios sees it, there are two routes China can take: 1) it could retaliate by acting against US projects in China, denying US companies permits to operate in China, essentially blocking US companies from one of the world’s most lucrative growth markets…2) it could engage in tit-for-tat retaliatory tariffs against specific US industries and products – much like the EU has threatened to do.

However, not everybody is convinced that China will follow through with a response beyond mere rhetoric: Nathan Chow, a strategist at DBS Group, wrote in a March 9 report that he doesn’t expect the US’s steel and aluminum tariffs to spark a “trade war” with China. Steel and aluminum account for only 3% of China’s total exports (though this figure masks the rampant trans-shipping whereby Chinese steel is dumped into other countries to mask its origins) and 0.6% of its GDP. Chow also argued that Chinese steel exports to the US are much smaller than the country’s top three steel export destinations: South Korea, Vietnam and the Philippines.

Steel

But one key difference between the Bush tariffs and the Trump tariffs is that Trump invoked Section 232 of the Trade Expansion Act – the so-called “national security” justification, which leaves the door open for other WTO members to use a similar argument to justify retaliatory tariffs that COULD escalate into a trade war…

 end

4. EUROPEAN AFFAIRS

 

England/Russia

Theresa May is set to blame sovereign Russia for the nerve gas attack on that ex Russian spy.  They seem to have chemical markets connected to a Russian laboratory.  How this is proof that Putin is behind this is your guess, but England is set to initiate more sanctions and she is asking the world to join her with their additional sanctions

 

(courtesy zerohedge)

 

8. EMERGING MARKET

 end

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

Euro/USA 1.2309 UP .0006/ 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 IN THE GREEN EXCEPT LONDON  

USA/JAPAN YEN 106.53 DOWN  0.274 (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/DEADLY UNWINDING OF YEN CARRY TRADE

GBP/USA 1.3859 UP .0019  (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 1.2825 UP .0014 (CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA)

Early THIS MONDAY morning in Europe, the Euro ROSE by 6 basis points, trading now ABOVE the important 1.08 level RISING to 1.2309; / Last night Shanghai composite CLOSED UP 19.53  OR 0.59% /   Hang Sang CLOSED UP 598.12 POINTS OR 1.93%  /AUSTRALIA CLOSED UP 0.53% / EUROPEAN BOURSES   IN THE GREEN EXCEPT LONDON

The NIKKEI: this MONDAY morning CLOSED UP 354.82 POINTS OR 1.65%

Trading from Europe and Asia:
1. Europe stocks OPENED ALL IN THE GREEN EXCEPT LONDON 

2/ CHINESE BOURSES / : Hang Sang CLOSED UP 598.12 POINTS OR 1.93%  / SHANGHAI CLOSED UP 19.53 OR 0.59%   /

Australia BOURSE CLOSED UP 0.53% /

Nikkei (Japan)CLOSED UP 354.82 POINTS OR 1.65%

INDIA’S SENSEX  IN THE GREEN 

Gold very early morning trading: 1316.70

silver:$16.48

Early MONDAY morning USA 10 year bond yield: 2.896% !!! UP 0  IN POINTS from FRIDAY night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/ 

The 30 yr bond yield 3.154 DOWN 1/2  IN BASIS POINTS from FRIDAY night. (POLICY FED ERROR)/

USA dollar index early  MONDAY morning: 90.08 DOWN 1  CENT(S) from FRIDAY’s close.

This ends early morning numbers MONDAY MORNING

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And now your closing MONDAY NUMBERS \1 PM

Portuguese 10 year bond yield: 1.824% DOWN 4  in basis point(s) yield from FRIDAY/

JAPANESE BOND YIELD: +.0.053% DOWN 0    in basis points yield from FRIDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.401% DOWN 4  IN basis point yield from FRIDAY/

ITALIAN 10 YR BOND YIELD: 1.999 DOWN 2 POINTS in basis point yield from FRIDAY/

the Italian 10 yr bond yield is trading 60 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: FALLS TO +.630%   IN BASIS POINTS ON THE DAY

END

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IMPORTANT CURRENCY CLOSES FOR MONDAY

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

Euro/USA 1.2318 UP .0015 (Euro UP 15 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 106.54 DOWN 0.270 Yen UP 27 basis points/

Great Britain/USA 1.3900 UP .0059( POUND UP 59 BASIS POINTS)

USA/Canada 1.2833 UP  .0024 Canadian dollar DOWN 24 Basis points AS OIL FELL TO $60.75

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This afternoon, the Euro was UP 15 to trade at 1.2318

The Yen ROSE to 106.54 for a GAIN of 27 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 59 basis points, trading at 1.3900/

The Canadian dollar FELL by 24 basis points to 1.2816/ WITH WTI OIL FALLING TO : $60.75

The USA/Yuan closed AT 6.3295
the 10 yr Japanese bond yield closed at +.053%  DOWN 0 BASIS POINTS / yield/
Your closing 10 yr USA bond yield DOWN 1 IN basis points from FRIDAY at 2.885% //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.145  DOWN 1    in basis points on the day /

THE RISE IN BOTH THE 10 YR AND THE 30 YR ARE VERY PROBLEMATIC FOR VALUATIONS

Your closing USA dollar index, 89.98 DOWN 11 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 MONDAY: 1:00 PM EST

London: CLOSED DOWN 20.47 POINTS OR 0.29%
German Dax :CLOSED UP 48.50 POINTS OR 0.39%
Paris Cac CLOSED DOWN 9.15 POINTS OR 0.15%
Spain IBEX CLOSED UP 26.00 POINTS OR 0.27%

Italian MIB: CLOSED  DOWN 1.59 POINTS OR 0.01%

The Dow closed DOWN 157.13 POINTS OR 0.62%

NASDAQ WAS up 27.51 Points OR 0.36% 4.00 PM EST

WTI Oil price; 60.75 1:00 pm;

Brent Oil: 64.41 1:00 EST

USA /RUSSIAN ROUBLE CROSS: 56.68 UP 24/100 ROUBLES/DOLLAR (ROUBLE LOWER BY 24 BASIS PTS)

TODAY THE GERMAN YIELD FALLS TO +.630% 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:$61.37

BRENT: $64.94

USA 10 YR BOND YIELD: 2.865%   THIS RAPID ASSENT IN YIELD IS VERY DANGEROUS/DERIVATIVES START TO BLOW UP/ 

USA 30 YR BOND YIELD: 3.126%/BROKE GUNDLACH’S KEY 3.00% AGAIN WHERE ALL VALUATIONS ON STOCKS BLOW UP/

EURO/USA DOLLAR CROSS: 1.2339 up .0036  (UP 36 BASIS POINTS)

USA/JAPANESE YEN:106.37 DOWN 0.440/ YEN UP 44 BASIS POINTS/ very dangerous as yen carry traders are getting killed/yen continues to rise despite the NYSE rising.

USA DOLLAR INDEX: 89.88 DOWN 21 cent(s)/dangerous as the lower the dollar the higher the inflation.

The British pound at 5 pm: Great Britain Pound/USA: 1.3907: UP 0.0066  (FROM FRI NIGHT UP 66 POINTS)

Canadian dollar: 1.2837 DOWN 28 BASIS pts

German 10 yr bond yield at 5 pm: +0.630%


VOLATILITY INDEX:  15.74  CLOSED  UP   1.10

LIBOR 3 MONTH DURATION: 2.09%  

END

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

TRADING IN GRAPH FORM FOR THE DAY

VIX Spikes Most In 7 Days As Tech Jumps, Dow Dumps

For Dow traders…

 

Ugly close but Nasdaq soared, S&P red, but Dow dropped hard after an exuberant open…

NOTE – Both rebounds in markets today were from the same headline on Larry Kudlow!!

 

The Dow fell back below its Fib 61.8% retrace line and notably made a lower-high…

 

Bank stocks extended Friday’s gain with Goldman jumping on the heels of confirmation about Blankfein’s successor…

While Nasdaq ripped, helped by chip stocks but FANG stocks rolled over (mainly due to NFLX)…

 

It’s an OPEX week – so historically that means a collapse in vol – but VIX jumped back above 16 today following Friday’s flash-crash (its first rise in 7 days)…

 

Although the put-call ratio has normalized to pre-crash levels…

 

And so has the VIX yield curve…

 

High yield bonds fell in price once again as did IG bonds, extending their losing streak. Last week was the 10th straight week that corporate borrowing costs have risen, the longest streak since 1994.

 

Treasury yields tumbled on the day, after two strong auctions, erasing Friday’s hype…

 

With 30Y back below pre-payrolls levels…

 

Breakevens tumbled from the US cash open…

 

The Dollar Index tumbled for the second day, erasing Thursday’s spike higher…

 

Crude was worst as gold scrambled back to unch, despite the drop in the dollar…

WTI/RBOB sank on the day, but rebounded in the afternoon…

Gold roundtripped from its early morning plunge…

 

Cryptos had another ugly day (although Bitcoin remains green from Friday’s close)…after some notable buying overnight…

 

As many start to wonder if Bitcoin is really leading The Dow…

 

end
Afternoon trading 2 pm

Dollar Dumps, Treasury Yields Erase Post-Payrolls Spike

After Friday’s excited celebration of slowing wage growth spiked 30Y Treasury yields, it appears a weekend of reality-checks has prompted some to see economic growth prospects sliding…

And the yield curve is testing back to its flasttest since the start of Feb…

 

And the dollar is plunging…

 

As The Dollar dropped to pre-trade wars levels…

 end
We have been highlighting this to you for the past several weeks:  i.e. the rise in risks to banks.  The Libor-OIS spread shows an increasing risk for banks to lend to one another.  No doubt a major part of this risk has been the dollar repatriation from Europe back to the USA
(courtesy zerohedge)

Is A Dollar Funding Crisis Imminent: Libor-OIS Blows Out The Most Since 2012

Call it the latest paradox of bizarro centrally-planned markets.

On the same day when the Nasdaq hit a new all time high, when the Dow soared and when the payrolls report reincarnated the Goldilocks narrative with one flashing red average hourly earnings headline (“surging jobs + subdued wage growth = an economy that can handle 10Y yields at or above 3.0%”), one of the most closely followed leading indicators of an imminent funding crisis and global credit crunch finally broke above its 6 year range, when the USD Libor-OIS spread jumped 2bps on Friday, rising to 44.23bps.

This was the widest this key spread has been since January 2012, when the latest European sovereign debt crisis was roiling the markets and forced the Fed to open unlimited swap lines with the rest of the world to avoid a global dollar funding crisis and, well, effectively bail out the world – which according to the BIS is synthetically short the USD to the tune of over $10 trillion – for the second time in 4 years.

The move will not come as a surprise to regular readers, as we have been covering it extensively since late 2017:

However, while the overall move wider was expected, the speed of the blow out has taken most analysts by surprise, and the result has been a scramble to explain not only the reasons behind the move, but its sharp severity.

While this is a simplification of the various catalysts behind the spike in Libor-OIS, here is a quick summary of what is going on – the expansion of Libor-OIS and basis swaps have been impacted by a complex array of factors, which include:

  1. an increase in short-term bond (T-bill) issuance
  2. rising outflow pressures on dollar deposits in the US owing to rising short-term rates
  3. repatriation to cope with US Tax Cuts and Jobs Act (TCJA) and new trade policies, and concerns on dollar liquidity outside the US
  4. risk premium for uncertainty of US monetary policy
  5. recently elevated credit spreads (CDS) of banks
  6. demand for funds in preparation for market stress

In recent posts (see above) we have taken a detailed look at each of these components, of which 1 thru 3 are the most widely accepted, while bullets at 4 through 6 are within the realm of increasingly troubling speculation, and suggest that not all is well with the market, in fact quite the contrary.

Whatever the cause of the ongoing blow out in Libor-OIS, this move is having defined, and adverse, consequences on both dollar funding and hedging costs. This alone will have a severe impact on foreign banks, because as DB wrote recently, “the rise in dollar funding costs will damage the profitability of hedged investing and lending by [foreign] financial institutions. Most of the bond investors we have talked with shared a strong interest (and concern) in this topic.” However, the most immediate consequence is that it is now more economical for Japanese investors to buy 30Y JGBs, with their paltry nominal yields, than to purchase FX-hedged 30Y US Treasuries which as of this moment yield less than matched Japanese securities. The same logic can be applied to German Bunds, as the calculus has made it increasingly unattractive for European investors to buy FX_hedged Treasuries.

It’s not just rates: the consequences of rising dollar funding costs will eventually impact every aspect of the fixed income market, even if simply taken in isolation due to the ongoing spike in 3M Libor which still is the benchmark reference rate for hundreds of trillions in floating-rate debt.

The reality, however, is that without a specific diagnosis what is causing the sharp surge wider, and thus without a predictive context of high much higher it could rise, and how it will impact the various unsecured funding linkages of the financial system, it remains anyone’s guess how much wider the Libor-OIS spread can move before it leads to dire consequences for the financial system.

* * *

And while we wait to see if this sharp move will continue, or it will moderate and perhaps reverse, here is a useful primed courtesy of Bloomberg on “why it matters that the Libor-OIS spread is widening.”

Short-term borrowing costs in the U.S. have risen to levels unseen since the financial crisis, and recent moves in two closely watched indicators — the London interbank offered rate and its spread with the Overnight Index Swap rate — are causing some consternation. The spread has expanded to its widest level in more than a year, raising questions about whether risks might be brewing within credit markets. While the recent widening may be technical and doesn’t suggest a systemic risk, several factors in funding markets are likely to prevent a “lasting retracement,” according to analysts.

1. What is Libor?

The London interbank offered rate, or Libor, is a benchmark that’s regarded as a gauge of credit market conditions. Every day, various major banks submit to an administrator estimates of what interest rate they would have to pay to borrow in the interbank market, and these are compiled to establish benchmark rates in five different currencies across seven different loan periods. Those benchmarks underpin interest rates on a range of financial instruments and products from student and car loans to mortgages and credit cards.

2. What’s OIS?

The Overnight Index Swap rate is calculated from contracts in which investors swap fixed- and floating-rate cash flows. Some of the most commonly used swap rates relate to the Federal Reserve’s main interest-rate target, and those are regarded as proxies for where markets see U.S. central bank policy headed at various points in the future.

3. Why does the Libor-OIS spread matter?

It’s regarded as a measure of how expensive or cheap it will be for banks to borrow, as shown by Libor, relative to a risk-free rate, the kind that’s paid by highly rated sovereign borrowers such as the U.S. government. The Libor-OIS spread provides a more complete picture of how the market is viewing credit conditions because it strips out the effects of underlying interest-rate moves, which are in turn affected by factors such as central bank policy, inflation and growth expectations.

4. Why are people worried?

The Libor rate for three-month loans in dollars has climbed to 2.03 percent, a level it hasn’t reached since 2008. Its spread over the OIS rate has also widened quite dramatically following a Congressional deal on the U.S. budget and debt ceiling on Feb. 8. That gap widened by 15 basis points in February and was at 44 basis points on March 9. It is the speed of the move that is giving some investors pause for thought.

5. What pushed it up?

Several factors. One has to do with the torrent of Treasury bill supply that the government has unleashed since lawmakers last month resolved their impasse over the nation’s borrowing limit. With that crisis passed, the Treasury has been replenishing its cash balance and that has meant a flood of debt sales, particularly of shorter-dated securities. That has driven up borrowing costs not just for Uncle Sam, but also for other borrowers in the short-term market who rely on instruments such as repurchase agreements and commercial paper.

6. So that’s the only reason it’s widening?

No, the tax legislation passed by Congress in December is also playing a role. The new law offers incentives forcorporations to bring money back to the U.S. that they had previously stashed overseas. Much of that offshore hoard has tended to be kept in short-term instruments like commercial and bank paper, and a dwindling of those overseas cash piles is likely to mean reduced demand for these products. And that means higher borrowing costs.

7. Anything else?

Yes. The Federal Reserve is shrinking its $4.4 trillion balance sheet, which means there will be less reserves sloshing around in the financial system. As the U.S. central bank pulls back from providing support, banks are going to have to compete more for funding, and that could force short-term rates higher.

 end
February has not been a good month traditionally for the USA government as we get our traditional tax return drains. Feb 18 was a terrible month for the government as its deficit climbed to $215 billion, the highest deficit since  Feb 2012.  Take note of the Feb 2018 interest at 28 billion dollars.  It is now climbing because the total debt is climbing to almost 21 trillion.
(courtesy zerohedge)

February Budget Deficit Surges As Interest On US Debt Hits All Time High

February is traditionally not a good month for the US government income statement: that’s when it usually runs a steep monthly deficit as tax returns drain the Treasury’s coffers. However, this February was worse than usual, because as spending rose and tax receipts slumped, the US deficit jumped to $215 billionthe biggest February deficit since 2012.

 

According to the CBO, receipts declined by 9.4% from last year as tax refunds rose and the new withholding tables went into effect. On a rolling 12 month basis, government receipts rose only 2.1%, a clear slowdown after rising 3.1% in December after contracting as recently as March 2017. At this rate of decline, the US will post a decline in Federal Receipts by mid-2018.

Outlays meanwhile rose by 2% due to higher Social Security and Medicare benefits rose and additional funds were released for disaster relief.

Putting these two in context, in Fiscal 2000, Treasury receipts in the Oct-Feb period were $741.8 bn, nearly matching outlays of $741.6 bn. In Fiscal 2018 meanwhile, receipts in the Oct-Feb period are $1.286 tn while outlays are $1.677 tn. Receipts are growing an average 4% per year, while outlays are rising an average 7%.

Source: Reuters

Here is a snapshot of February and Fiscal YTD receipts and outlays.

 

But most troubling was the jump in interest on the public debt, which in the month of February jumped to $28.434 billion, up 10.6% from last February and the most for any February on record. In the first five months of this fiscal year, that interest is $203.234 bn, up 8.0% y/y and the most on record for any Oct-Feb period.The sharp increase comes as the US public debt rapidly approaches $21 trillion. And with the effective interest rate now rising with every passing month, it is virtually assured that this number will keep rising for the months ahead.

Source: Reuters

end

David Stockman writing over the weekend: the bubbles are waiting for their pin prick:
(courtesy David Stockman/ContraCorner)

Stockman: “The Everything Bubble Is Just Waiting For The Pin”

Authored by David Stockman via Contra Corner blog,

Yesterday we noted that financial markets have become completely uncoupled from reality and that the recent feeble bounces between the 20-day and 50-day chart points were essentially the rigor mortis of a dead bull. As it happened, we were able to share those sentiments with what remains of CNBC’s audience of carbon-based units:

As we also noted as per the chart point mavens, the 20-day average down at 2703 (red line) on the S&P 500 was supposed to represent “support” while the  50-day average (blue line) purportedly functioned as “resistance”.

Well, upon the official announcement of the Donald’s lunatic trade war, there she sat at yesterday’s close—less than one point under the 50-day moving average at 2739.8 (blue line).

But rather than “resistance”, which the raging robo-machines ripped through today like a hot knife through butter, we’d say the blue line represents the last frontier of sanity. That’s because a stock market trading at 25X earnings under today’s baleful circumstances is nothing less than a brobdingnagian bubble (i.e. a huuuge one) frantically searching for the proverbial pin.

We essay the razor sharp aspects of the pin below, but suffice it to say here that the cyclical calendar has just plain run out of time. It is way, way too late in the cycle at 105 months of age to be “pricing-in” anything except the end of the party. And this bubblicious party has embodied the most spectacular central-bank fueled mania yet—meaning that the morning after is going to bring a truly hellacious hangover.

^SPX Chart

Among the many sharp edges of the pin are these:

  1. the virtual certainly of a recession within the next two years and a typical 30%-50% drop in earnings;
  2. the epochal Fed pivot to QT (with other major central banks to follow) and the consequent massive drainage of cash from the bond pits;
  3.  the mad man in the Oval Office and (among other follies) his swell new Trade War, which absolutely will get out of hand globally;
  4.  the impending “yield shock” which will thunder through the financial markets when Federal borrowing hits $1.2 trillion in the coming year–on the way to $2 trillion+ annual deficits as far as the eye can see;
  5. a deeply impaired underlying main street economy which is groaning under $68 trillion of public and private debt and a reverse robin hood financial regime that has left 80% of the population on welfare or struggling to make ends meet on earnings that barely keep up with inflation; and
  6. the swaying giant red elephant in the global economic room—meaning China’s historically unprecedented and freakish explosion of debt, manic building, monumental speculation, systematic lying and fraud and serpentine centralized command-and-control that is destined to end in a spectacular implosion.

Yet the financial system has been so corrupted by the central bank’s long-running regime of financial asset inflation and price falsification that it no longer recognizes anything that is important, fundamental and persisting. Instead, owing to the cult of an ever rising stock market, Wall Street is hopelessly enthrall to recency bias and context-free short-term deltas in the incoming monthly data.

The latter are virtually meaningless under today’s central bank driven Bubble Finance regime, of course, because the direction of economic causation has been reversed.

To wit, clumsy central banks in the pre-1987 world often fueled overheated credit on main street. Rising wage and consumer inflation then forced them to garrote the banking system, thereby triggering a collapse of housing, big ticket durables and CapEx. So the early on-set warning indicators and the eventual fact of main street recession caused the stock market to dive.

By contrast, in a debt saturated global economy run by a linked-convoy of central banks, monetary “stimulus” does not inflate main street or real economies when they are impaled on Peak Debt. It simply inflates monumental financial bubbles in the money and capital markets—-ever expanding bubbles which eventually burst.

These episodically bursting bubbles, in turn, shock the C-suites of the corporate world into desperate sprees of liquidation. That is, the dumping of employees, inventories, fixed assets and restructuring plans designed to brake the fall of their artificially inflated share prices and stock options.

Consequently, neither central bankers nor Wall Street ever see these new style recessions coming because, in fact, they can’t be detected from even an astute reading of the macro-economic tea-leaves.

Self-evidently, that’s because the triggers for recession are embedded in the interstitial bubbles of the financial markets; and while the latter may be obvious to the outsider or even a visiting Martian, they are adamantly denied by the Wall Street stock peddling apparatus and are invisible to the Fed’s financially clueless Keynesian academics and policy apparatchiks who remain glued to their macroeconomic dashboards.

Alas, the sheer resilience of main street capitalism keeps these dashboards mostly flashing green, most of the time. And it doesn’t take much to impress the bubble-besotted financial commentariat and day traders, as this current anemic recovery has amply demonstrated.

In a system so addled by phony bubble wealth, in fact, it apparently doesn’t even matter that the current expansion has generated real final sales growth of only one-third its historic rate; and that even the 1.2%growth rate shown below probably overstates the case owing to systematic and deliberate under-measurement of inflation by Washington’s officialdom.

Stated differently, the macroeconomic “new normal” has been so tepid that it has barely lifted the main street economy out of the deep hole trigged by the last financial bubble meltdown in 2008-2009. Yet as long as the monthly indicators show a smidgeon of green—– as capitalism trudges uphill against the headwinds of debt and central bank induced strip-mining of corporate cash flows and balance sheets—-it is apparently enough to keep the recovery narrative going.

Needless to say, we had a classic case of that this AM with the so-called “blow-out” jobs print at 313,000 for the month of February. Indeed, that number seems pretty impressive—-that is, until you read the fine print on the chart below.

It seems that during the 12 month period depicted in the chart, there were five months in which the BLS establishment survey reported a gain of @300,000 or more jobs, and an average gain of 240,000 per month for the period as a whole.

Except, except. This chart ends in spring 2006!

And about 20 months later the US economy was plunging into the Great Recession.

Moreover, by October 2009, every single one of these jobs had disappeared on a net basis. In fact, the 136.1 million jobs beneath the +300,000 print in March 2006 tumbled all the way to 129.7 million before it was over.

As it happened, the March 2006 high water mark depicted above, was not recovered until  July 2013—-seven full years later!

Needless to say, back then that did not stop the talking heads of bubblevision from celebrating the Goldilocks Economy and claiming that it was smooth sailing ahead because there wasn’t a hint of recession in sight.

Au contraire. There most definitely were numerous neon-lights flashing recession warnings, but they were domiciled in the canyons of Wall Street, not the BLS reports. The imminent threat to goldilocks was the manic sub-prime, credit and stock market bubbles that were being fostered there by the Greenspan Fed.

Although the Great Recession technically incepted in December 2007, the real plunge did not occur until the stock market meltdown of September-October 2008, which caused the C-suites of  corporate America to begin pitching labor, inventories and assets overboard with virtually reckless abandon.

The corporate mayhem only stopped in mid-to-late 2009 (i.e. that’s when the massive monthly layoffs and inventory liquidations essentially ended) when Bernanke’s tripling of the Fed’s balance sheet caused the stock market to begin to convincingly reflate.

At that, the C-suites got their options packages re-priced to far lower levels, thereby permitting  business as usual to begin slowly climbing out of the deep hole triggered by the bursting Wall Street bubble. Still, it took seven full years as documented in the chart below for the establishment payroll count to recapture its Goldilocks level of March 2006.

 

It is also worth noting that the BLS report made its last monthly print at 300,000 in March 2006 (actually it has now been revised multiple times to 297K, which is close enough for government work). That was month # 52 of the Greenspan/housing expansion. By contrast, the US economy is now in month #105 of the Bernanke/Yellen Everything Bubble.

Still, during the last 12 months there have been only two 300,000+ prints and the average monthly employment gain has been just 190,000. That’s 21% below the 240,000 average in the 2006 chart above, and its in a context in which the potential labor force has grown by 29 million or 13%.

Likewise, back in 2006 the Red Ponzi was still in its relative infancy, the Fed had restored some semblance of sanity to the money market with the funds rate at 5.25% by mid-2006, and no one had yet heard of the idea of QT (quantitative tightening) because QE (quantitative easing) has not yet been invented—at least in the US context.

Stated differently, the Fed’s balance sheet was about $700 billion and had plenty of headroom to the upside. Now it is trying to crawl off the ledge at $4.4 trillion—with a destination at +/- $2.5 trillion, as the new Janet in ties and trousers explained to the Congress last  week.

In as word, we don’t think the February print means anything at all—-not in month #105 of a feeble business expansion which is confronting all of the headwinds described above. But as we shall explore further next week, here is the ultimate measure of  Wall Street’s big, bloated, manic bubble begging to find the pin.

To wit, the new quarterly data on household net worth to disposable personal income is literally off-the-charts; it reflects the massive inflation of financial assets and real estate during this third and greatest central bank bubble of this century.

But here’s the thing. The underlying level of income, which is now effectively capitalized at a record 6.8X  is the lowest quality income in modern times. Fully 22% of it is accounted for by transfer payments—-a figure which has more than doubled since the turn of the century.

Yet how can you capitalize at more than 0.0X “income” that is extracted from producers, not generated by new output and wealth?

Social Benefits vs Incomes

 

Likewise, the real growth of wage and salary income relative to the pre-crisis peak has slowed to a virtual crawl. Moreover, as we will also elaborate next week, the bottom half of wage and salary workers, or 80 million persons, earned total annual wages of less than $30,000 in 2016 and averaged just $13,000 each.

What it boils down to is this: The top 1% and 10% of the population, which own 40% and 80% of the financial assets, respectively, are riding high. But, alas, that is way too high for the underlying level and quality of income and the 90% of the population on which they sit.

So the Great Pin is surely coming – and it may be wielding torches and pitchforks when it arrives.

 END
SWAMPVILLE
Stormy Daniels tapes a segment for “60 Minutes” with Anderson Cooper
(courtesy zerohedge)

Stormy Daniels Tapes “60 Minutes” Interview With Anderson Cooper

Ever since news broke that Trump lawyer Michael Cohen won an arbitration hearing meant to stop Stephanie Clifford – aka Stormy Daniels, the adult film star who reportedly had a brief affair with Donald Trump after meeting him at a golf tournament in 2006 – it’s been nonstop Daniels news, as the White House announced that President Trump has hired a lawyer exclusively to handle Daniels-related matters (like enforcing an NDA that she’s claiming is invalid because President Trump never signed it, even though his lawyer paid her the agreed-upon $130,000).

Daniels has also claimed that, by admitting to the payoff during public testimony, Trump lawyer Michael Cohen had violated the NDA, and that it is no longer binding.

CNN, meanwhile, has been all over the Daniels beat, with White House reporter Jim Acosta reporting that Trump is displeased with Press Secretary Sarah Huckabee Sanders’ handling of a reporter’s question during a Wednesday press conference where she acknowledged that Trump had won the arbitration proceeding against Daniels.

Indeed, it appears that, instead of fading away, like most scandals involving the White House, the Trump-Daniels affair is about as persistent as a case of herpes.

Case in point: Today, CNN is reporting that Daniels has filmed a segment for ’60 Minutes’ with CNN’s Anderson Cooper, who is also a regular contributor to ’60 Minutes.’

In January, Daniels appeared on Jimmy Kimmel live, where she shockingly appeared to deny sleeping with Trump, before later denying her denial.

As of Friday, the 60 Minutes feature didn’t have an air date for the segment, saying only that it’d be “soon.”

Cohen has said that “the payment to Ms. Clifford was lawful, and was not a campaign contribution or a campaign expenditure by anyone,” but several election watchdogs have filed complaints with the Federal Election Commission, arguing that the Daniels payment could constitute an unreported campaign expense.

Stormy

Daniels has shared intimate details of her affair with Trump – which lasted roughly 18 months and ended after he failed to secure a spot on “The Apprentice” for the adult film actress (it was network TV, after all). During an interview with “In Touch”, she dished that the sex was “textbook generic” and that Trump once confided in her that he hates sharks, and would never donate to a charity that helps them.

Meanwhile, the president’s supporters in the evangelical community continue to have his back, arguing that whether or not Daniels’ allegations or true makes no difference to them, per the Hill…

“Evangelicals know they’re not compromising their beliefs in order to support this great president,” Pastor Robert Jeffress said on Fox News Thursday. “And let’s be clear, evangelicals still believe in the commandment ‘thou shalt not have sex with a porn star.’”

“However, whether this president violated that commandment or not is totally irrelevant to our support of him,” he continued.

Jeffress said evangelicals knew they “weren’t voting for an altar boy” when they voted for Trump and maintained they supported Trump for his “policies and strong leadership.”

The pastor, who runs the First Baptist Church in Dallas, reminded reporters that evangelicals understand “the concept of sin and forgiveness…”

…Oh, and let’s not forget their appreciation for his Supreme Court picks.

 

END
Trump is considering an injunction trying to block the “60 Minutes” airing of the interview of Stormy Daniels by Anderson Cooper
(courtesy Jon Queally/CommonDreams.org/Buzzfeed)

Trump Considering Action To Block “60 Minutes”‘ Stormy Daniels Interview: Report

Authored by Jon Queally via CommonDreams.org,

As focus continues on the $130,000 payoff at the center of a non-disclosure agreement signed (or not signed) just before the 2016 election, Buzzfeed reports Sunday that lawyers associated with President Donald Trump are “considering legal action” to stop the airing of a 60 Minutes interview between journalist Anderson Cooper and Stormy Daniels, the porn actress whose lawyer said publicly last week had an extramarital sexual relationship with Trump in 2006 while married to his current wife, Melania.

“We understand from well-placed sources they are preparing to file for a legal injunction to prevent it from airing,” someone with knowledge of the legal preparations told Buzzfeed‘s Chris Geidner on Saturday.

In a tweet late last week, Michael Avenatti, the attorney for Daniels, whose real name if Stephanie Clifford, appeared to confirm that an interview with Cooper had taken place:

In his Buzzfeed reporting published on Sunday, Geidner explained:

It was not immediately clear what legal argument the lawyers would be making to support the considered litigation, and Trump and his legal team often have threatened litigation without following through on those threats in the past.

Michael Cohen, Trump’s personal attorney who previously was a longtime lawyer for the Trump Organization, directed questions about the possibility of litigation to Larry Rosen, who Cohen told BuzzFeed News is “my attorney handling this matter.” Rosen — a partner in the firm LaRocca, Hornik, Rosen, Greenberg & Blaha — acknowledged his role in the matter generally but did not comment directly on the possibility of seeking an injunction.

BuzzFeed News has learned that CBS plans to air the 60 Minutes interview with Clifford next Sunday, March 18.

An action to try to prevent the interview from airing would be the latest in a flurry of developments in a case that began just before the 2016 election when Cohen paid Clifford $130,000 in return for her silence about a sexual relationship she allegedly had with Trump in 2006. At the time, Trump was under intense pressure over comments he’d made about his treatment of women in the run-up to the vote.

In an email sent to Buzzfeed on Sunday, Avenatti stated, “Why so many steps to keep the American people from learning the truth? And to think that all this time we all thought this was a democracy where we actually valued free speech.”

Meanwhile, following the story’s publication, much of the reaction online looked like this:

Trump’s lawyers are trying to stop “60 Minutes” from airing interview with Stormy Daniels. That’s just going to make the viewership higher.

Of course, as much as anyone might want to find other important things to talk about – and as Naomi Klein detailed in this TED Talk last week, there is absolutely no shortage of profound crises and concerns that demand our attention – Alyssa Mastromonaco, a former top aide to President Barack Obama, says there are also very serious reasons why the Stormy Daniels story cannot simply be ignored. She writes:

When you go to work in the White House, you divest yourself of your secrets for the same reason you divest yourself of your financial holdings: so people can’t blackmail you. Though the emphasis on Trump’s taxes may have seemed to many voters a secondary issue, the Stormy Daniels scandal shows why they mattered. If President Trump had disclosed his tax returns, like every single candidate and nominee before him, I don’t believe we’d be in this pickle — the pickle of a U.S. president being sued by a porn star after his alleged affair with her, which she claims took place when his new wife had just given birth to their child.

Regardless of whether there’s more to know—and I suspect there’s plenty—what the Daniels saga demonstrates is that the White House officials’ unwillingness to disclose their sordid pasts has compromised the security of the United States. Daniels is blackmailing Trump right now; she wants to expose her version of what happened between them. As The New York Times reported this week, Daniels claims Trump didn’t sign their 2016 nondisclosure agreement; can we trust him to cross the t’s and dot the i’s in other situations? What other secrets might individuals or foreign governments be able to use to get the president of the United States to do what they want?

Writing in the Washington Post, Colbert I. King makes a similar argument in an op-ed titled, “I don’t care if Trump had an affair. I care about the hush money.

In addition to the serious questions about campaign finance violations, King argues there is more to it than that.

“It is about the possibility that the candidate who was elected president of the United States paid or ordered to be paid money to someone to conceal something he privately did – payoff money to keep information about him secret from the voters.”

Given what is known so far, and what may ultimately come out of Special Counsel Robert Mueller’s probe, says King, means the American people have every right to know how far Trump would go to keep embarrassing information from coming out.

Over the weekend, Trump is said to be ready to clean house.  That means that Kelly, McMaster, Kushner and Ivanka Trump may all be on their way out
(courtesy zerohedge)

“A Clean Reset”: Trump Said To Be Cleaning House; Kelly, McMaster, Jared, Ivanka All On Way Out: Report

President Trump is said to be cleaning house, according to Vanity Fair‘s Gabriel Sherman who writes on Friday that  “Trump Is Going for a Clean Reset”: Fuming in the West Wing, Trump Prepares to Defenestrate Cuck Allies and Go Full MAGA. According to a “Republican in frequent contact with the White House,” Trump is “tired of being reined in,” and is ready to clean the slate in the West Wing to his liking.

With the departures of Hope Hicks and Gary Cohn, the Trump presidency is entering a new phase—one in which Trump is feeling liberated to act on his impulses. “Trump is in command. He’s been in the job more than a year now. He knows how the levers of power work. He doesn’t give a fuck,” the Republican said. Trump’s decision to circumvent the policy process and impose tariffs on imported steel and aluminum reflects his emboldened desire to follow his impulses and defy his advisers. “It was like a fuck-you to Kelly,” a Trump friend said. “Trump is red-hot about Kelly trying to control him.”

The solution, according to “five Republicans close to the White House,” is a total changing of the guard: “Trump is going for a clean reset, but he needs to do it in a way that’s systemic so it doesn’t look like it’s chaos.”

The first to go, according to the sources, will be Chief of Staff John Kelly followed by National Security Adviser H.R. McMaster – who Trump has been at odds with for nearly his entire presidency according to reports.

In late February, both CNN and Reuters reported that Kelly and McMaster were reportedly close to quitting or being fired over various issues, including Jared Kushner’s security clearance which was downgraded last week.

“There have been running battles between Trump and his generals,” said one of the officials, speaking on the condition of anonymity. Kelly is a retired Marine general and McMaster an Army lieutenant general.

“But the clearance business is personal, and if Trump sets special rules for family members, I‘m not sure if Kelly and McMaster would salute,” the official said. –Reuters

Then on March 1, NBC reported that HR McMaster is on the verge of being pushed out – with Kelly and Defense Secretary James Mattis reportedly having orchestrated McMaster’s ouster, even going so far as to select a leading candidate for the job.

That might all be out the window says Gabriel Sherman – as Trump is said to be meeting next weekend at Mar-a-Lago with potential candidates for both McMaster and Kelly’s positions. On Tuesday, Trump met with John Bolton, former US Ambassador to the United Nations.

Trump is expected to interview more candidates for both positions, according to two sources. “He’s going for a clean slate,” one source said. Cohn had been lobbying to replace Kelly as chief, two sources said, and quit when he didn’t get the job. “Trump laughed at Gary when he brought it up,” one outside adviser to the White House said. (The White House declined to comment.) –VF

Bye Jared and Ivanka

Next on the list are reportedly Jared Kushner and Ivanka Trump. While Trump remains loyal to his family, Kushner has been attracting an increasing amount of negative press, and is reportedly a central focus of Special Counsel Robert Mueller’s probe into Russian meddling in the 2016 election. The president’s son-in-law is in a weakened position, which Trump may feel will be a detriment going forward.

One scenario being discussed is that Kushner would return to New York to oversee Trump’s 2020 re-election campaign with his ally Brad Parscale, who was hand-selected by the Trump family. One Trump friend referred to it as a “soft landing.” Ivanka will likely stay on longer, perhaps through the summer, before decamping home to New York to enroll the children in a Manhattan private school. Both are presumed to remain in close contact with Trump, who often places significant value on the opinions expressed outside his administration, anyway. –VF

Sherman’s sources claim the couple will try to hang on as long as possible to avoid the impression that they were driven out by Kelly, while both Ivanka and Jared have been furious at the Chief of Staff.

“Why do you have to embarrass Jared like that?” Ivanka complained to a friend recently. Kushner is doing everything he can to appear engaged despite his lack of a security clearance. “He is looking at everything he can do that doesn’t require a clearance,” a former White House official said. Another source added, “The White House is trying to fluff him up again.”

With the seemingly ongoing game of musical chairs once again in play while Trump removes the chairs, one wonders just who will be staffing the West Wing for the rest of the Trump presidency.

end

The Wall Street Journal is set to be close to completion of the Trump obstruction probe but it does not look like it is so

 

(courtesy zerohedge)

Mueller Said To Be “Close To Completion” Of Trump Obstruction Probe

Over the weekend, the Wall Street Journal surprised its readers by reporting that President Donald Trump’s legal team was working with Special Counsel Robert Mueller to reach an early close to his Russia probe, using the possibility of an interview with the president (and the implicit threat of Trump quashing the probe) as leverage to force Mueller into some kind of deal that, by the sound of it, would probably see Trump accept a slap on the wrist.

However, no sooner had the WSJ story dropped than the New York Times appeared to negate it with a report of its own, penned by “Trump whisperer” Maggie Haberman. In it, Haberman writes that Trump is in talks to hire the veteran Washington lawyer who represented Bill Clinton during his impeachment trial. In its story, the NYT specifically reported that – if accurate – the hiring of attorney Emmet Flood would suggest that the probe is unlikely to end anytime soon.

President Trump is in discussions with a veteran Washington lawyer who represented Bill Clinton during the impeachment process about joining the White House to help deal with the special counsel inquiry, according to four people familiar with the matter.

The lawyer, Emmet T. Flood, met with Mr. Trump in the Oval Office this past week to discuss the possibility, according to the people. No final decision has been made, according to two of the people.

Should Mr. Flood come on board, the two people said, his main duties would be a day-to-day role helping the president navigate his dealings with the Justice Department.

Two people close to the president said that the overture to Mr. Flood did not indicate any new concerns about the inquiry. Still, it appears, at the least, to be an acknowledgment that the investigation is unlikely to end anytime soon.

The NYT report infuriated Trump, who issued a scathing tweet accusing the paper of fabricating lies about him.

The Failing New York Times purposely wrote a false story stating that I am unhappy with my legal team on the Russia case and am going to add another lawyer to help out. Wrong. I am VERY happy with my lawyers, John Dowd, Ty Cobb and Jay Sekulow. They are doing a great job and…..

 

…have shown conclusively that there was no Collusion with Russia..just excuse for losing. The only Collusion was that done by the DNC, the Democrats and Crooked Hillary. The writer of the story, Maggie Haberman, a Hillary flunky, knows nothing about me and is not given access.

And as if the will-he-won’t-he routine wasn’t infuriating enough already, Bloomberg joined the fray today, publishing a report saying Mueller could be close to wrapping up parts of his investigation, while putting other pieces of the inquiry on hold for now.

Special Counsel Robert Mueller’s investigation into whether President Donald Trump obstructed justice is said to be close to completion, but he may set it aside while he finishes other key parts of his probe, such as possible collusion and the hacking of Democrats, according to current and former U.S. officials.

The reason? Mueller is worried that, if he brings charges relating to Trump’s purported obstruction of justice, witnesses in other parts of the probe might get cold feet as they circle the wagons. Meanwhile, Republican lawmakers are ratcheting up pressure on Mueller to wrap up the probe.

The obstruction portion of the probe could likely be completed after several key outstanding interviews, including with the president and his son, Donald Trump Jr. The president’s lawyers have been negotiating with Mueller’s team over such an encounter since late last year. But even if Trump testifies in the coming weeks, Mueller may make a strategic calculation to keep his findings on obstruction secret, according to the current and former U.S. officials, who discussed the strategy on condition of anonymity.

Any clear outcome of the obstruction inquiry could be used against Mueller: Filing charges against Trump or his family could prompt the president to take action to fire him. Publicly clearing Trump of obstruction charges — as the president’s lawyers have requested — could be used by his allies to build pressure for the broader investigation to be shut down.

With 17 prosecutors at its disposal, Mueller’s sprawling probe is expected to be the 2016 campaign. Mueller is also expected to issue indictments against those (probably Russian) individuals suspected of hacking the Democratic National Committee before the election while publicly leaking stolen material in an effort to hurt Democrat Hillary Clinton.

Trump

And as we pointed out last week, the Trump family’s foreign business entanglements, as well as efforts by the United Arab Emirates to influence Trump following meeting between a Trump emissary in the Seychelles. Mueller is also reportedly turning up the heat on Trump lawyer Michael Cohen by asking questions about his outreach to a spokesman for Russian President Vladimir Putin about a stalled “Trump Tower Moscow” project.

Perhaps the biggest variable in determining when the probe will end is the cooperation of Trump and his family. As we reported, Trump’s lawyers are reportedly pushing Mueller to accept written replies to his questions.

The timing for whether — and when — to interview Trump or his family members is one of the most sensitive decisions Mueller faces at this stage of his investigation. The special counsel’s office declined to comment for this story.

Trump’s lawyers have also said they expect the probe to wrap up shortly. Mueller has already secured several guilty pleas – including a plea from former Trump National Security Advisor Michael Flynn – and has requested more than 1.4 million pages of documents.

Meanwhile, when it comes to the obstruction investigation, Mueller is believed to be focusing on three main potential violations: Trump’s firing of FBI Director James Comey; the drafting of a misleading statement to the New York Times about a meeting Don Jr. organized with a Russian lawyer and her entourage at Trump Tower during the summer of 2016, and – in an incredibly meta twist – Mueller is also investigating reports that Trump considered firing him last June.

Several members of Trump’s family have also been reluctant to speak with Mueller.

Kushner spoke to Mueller early on in the investigation for a limited interview, while Don Jr. and Ivanka Trump, haven’t been interviewed. There is also no indication that Mueller interviewed former Trump bodyguard Keith Schiller.

Mueller’s team of FBI agents and prosecutors has already interviewed people who could provide firsthand knowledge of possible obstruction of justice, including Comey, Attorney General Jeff Sessions, Deputy Attorney General Rod Rosenstein, Director of National Intelligence Dan Coats and National Security Agency Director Michael Rogers.

Of course, whether the investigation truly is close to wrapping up won’t be known until Mueller tells us. Though a recent barrage of leaks about the expanding scope of the investigation would suggest that, even if it’s not close to being over, it is entering a new, more-intense phase.

end

 

 

A good one.. a former CIA officer highlights the criminal Clinton Foundation as the biggest sscandal in USA history

 

(Greg Hunter/USAWatchdog/)

 

Former CIA Officer Exposes Clinton Charity Fraud As Biggest Scandal In US History

Via Greg Hunter’s USAWatchdog.com,

Former CIA Officer and whistleblower Kevin Shipp says the reason for all the crime and treason at the FBI and DOJ all boils down to one thing – the Clinton’s so-called “charity.”

Shipp explains, “Hillary Clinton was running and is running a global financial criminal syndicate.  She was using these secret servers to conduct Clinton financial money laundering business.”

“The shocking thing about that is all the former directors of the CIA that have come out to support her, from Clapper to Brennan to Morell to Robert Gates supporting her being elected, knew about this criminal syndicate.  Comey was protecting it.  Lynch was protecting it.  Weissmann was protecting it.  And that is the big why.  What’s she got on these people?  Are they financial ties?  They had to be aware of this, especially the counter-intelligence units.  We know it was hacked into by foreign intelligence services because it was just hanging out there.  Hillary Clinton was running a secret server outside the Department of State for the purposes of laundering money through the criminal Clinton Foundation.

Are the crimes and treason of the Clinton Foundation the anvil that is about to drop? Shipp says,

It’s not just an anvil, I think it is a mountain and the nexus of everything.  This “Clinton Global Initiative” (CGI) is worldwide, and it’s been out there for a couple of decades.  It has now intertwined former Directors of the CIA and FBI.   George Soros is a part of it.  It’s connected to all kinds of global financial institutions…

It is at least a $100 billion…

All these people protecting and defending Hillary Clinton and knowing about her criminal syndicate, this goes into the so-called ‘Deep State’ of our government, and it is connected, involved and intertwined in the global criminal crime syndicate called the Clinton Foundation.  This is probably going to be the biggest scandal in U.S. history–once it’s busted.  I think they are quietly working on it now, and I think they have been for the last year.  It is so huge the arrests and indictments could cause a Constitutional crisis with some people being removed.  Maybe that’s why they are moving slowly.  It all comes back down to the Clinton Foundation and the criminal syndicate.”

Is former President Obama involved with the Clinton crime syndicate? Shipp says,

Yes, I am absolutely convinced of it.  George Soros gave $30 million to Obama’s campaign.  Then he gave $27.1 million to Hillary Clinton’s campaign.  Both Obama and Clinton are tied directly into George Soros.  Obama was put into office with millions of dollars that came out of nowhere.

Yes, he’s part of this cabal.  Yes, he’s part of this global syndicate, and in my opinion, the subversion of our government.”

In closing, Shipp contends,“There could be a Constitutional crisis in that we could see Congressmen, Senators, former Directors of the FBI and the CIA perp walked after they receive charges.”

“Could you imagine if senior DOJ officials were arrested, some Congressmen and Senators were arrested and other government officials were arrested on charges and walked out of office?  That’s the Constitutional crisis I am talking about.  Those kind of high level arrests would shake up this nation.  It would be huge, and that’s why it has taken so long and methodical in doing this.”

Join Greg Hunter as he goes One-on-One with CIA whistleblower Kevin Shipp…

END

Michael Snyder explains why he is running for Congress and how he must drain the swamp

 

(courtesy zerohedge)

Congressman To Be Explains Why The Corruption In Washington Is Much Worse Than You Think

Authored by Michael Snyder via The Economic Collapse blog,

What would you say if I told you that committee chairs were for sale in Congress?  And what would you say if I told you that many members of Congress spend far more time on the telephone raising money than on the jobs that the people of their states actually elected them to do?  There is a reason why so many Americans absolutely hate Congress.  At this moment, Congress has an approval rating of just 15 percent, and approval ratings for Congress have been at extremely low levels for a very long time.  We all know that Congress has become completely corrupt, that it is completely unresponsive to the American people and that it has become all about the money.

Many have asked why I would want to become part of such a corrupt institution, and I respond by saying that it is time to take our government back.

*  *  *

U.S. Representative Ken Buck was elected to Congress in 2014, and he recently authored a book that is shaking Washington to the core.  The following is what USA Today had to say about it…

And the second-term Republican is unlikely to make many more with Tuesday’s publication of his tell-all book, Drain the Swamp: How Washington is Worse Than You Think, co-authored with Bill Blankschaen.

In it, Buck says lawmakers are mostly “fat and happy alligators who feel pretty darn comfortable in the swamp.” He casts Republican leaders as “playground bullies” who go to great lengths, including yanking subcommittee chairmanships and canceling lawmakers’ overseas trips, to punish dissenters. And he decries a “pay-to-play” system in which plum committee assignments and leadership slots are tied to lawmakers’ fundraising skills instead of their policy expertise.

One of the things that Buck has revealed that upset me the most is the fact that committee chairs are essentially for sale in Washington.  Here is a brief excerpt from Buck’s book

Here’s how it works for Republicans. If you want to serve on a committee, you have to raise money for the National Republican Congressional Committee (NRCC). The amount varies depending on the committee and role. For example, to serve on a B or C level committee, a GOP House freshman member must raise $220,000 every two years … Veteran members on A committees must raise more than twice that amount  $450,000…

If you become the chair of a B committee – congratulations – you’re now expected to raise $875,000 a year for the NRCC. Chairing an A committee means you must raise $1.2 million.

In order to raise such large amounts of money, members of Congress are expected to spend approximately four hours a day on the telephone raising money.  This is something that I wrote an extended article about last week.

I have already pledged that I am not going to participate in that system and that I am not going to make those calls.

I believe that members of Congress should be spending their time in Washington doing what they were elected to do, and if you want to see this current system dismantled I hope that you will stand with us.

Because the Washington money machine is not behind me, we are funding our campaign entirely through grassroots donations

If we do not stand up to the corruption in Washington, it will just continue to get worse and worse and worse.

That is why we need to send fighters to D.C., and I am being very bold about the fact that I am not going there to play nice.  I am going there to turn over the tables and to turn the current corrupt system upside down, and party leadership is not going to like that at all.

According to the Hillthose that do not play along with the current corrupt system often pay a very high penalty…

And what if you, as a Member of Congress, decide not to play along? For starters, you won’t be able to use the NRCC call suites that are conveniently located two blocks from the House office buildings, and the leadership will put out the word to the K Street lobbying community that they are not to donate or raise funds for you if they wish to stay in the leadership’s good graces. If you’re particularly rebellious, you’ll be stripped of your committee assignments, and maybe even be challenged in a primary by a leadership-backed candidate.

If they try to do those things to me, I still will not back down.

After all, I am not going there to be a career politician.

Instead, I am going there to be part of a national movement to take Congress back for the American people.

In his new book, Ken Buck spoke very eloquently about the need to drain the swamp…

Our founders’ default position was to keep power as far from Washington as possible. We can no longer afford to ignore their wisdom.

A crippling national debt exists because Washington has too much power. Corruption in the federal government is a direct result of so many people getting comfortable in the stagnant political backwaters beside the Potomac.

The concentration of power in D.C. attracts the worst and tempts the best, making it extremely difficult for men and women of character to arise and lead our nation to a healthier place.

The best way to drain the swamp in Washington is to remove the incentive for abuse. Swamps exist when water congregates in one place and becomes stagnant over time.

Draining the swamp means draining Washington of power. Washington can’t abuse power it does not have.

If you want to help us drain the swamp, now is the time to act.

*  *  *

If you believe that it is time to take our government back, send someone to Washington that is committed to doing exactly that.  I am asking for your financial support, and if you live in Idaho’s first congressional district I am respectfully asking for your vote on May 15th.

Michael Snyder is a pro-Trump candidate for Congress in Idaho’s First Congressional District.  If you would like to help him win on May 15th, you can donate online, by Paypal or by sending a check made out to “Michael Snyder for Congress” to P.O. Box 1136 – Bonners Ferry, ID 83805.  To learn more, please visit MichaelSnyderForCongress.com.

I will  see you TUESDAY night

HARVEY

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