June 11/GOLD UP 65 CENTS TO $1299.25/SILVER IS UP A GOOD 18 CENTS TO $16.91/CONDITIONS FOR A NUCLEAR DISARMAMENT WITH NORTH KOREA LOOKING REAL GOOD; MIKE POMPEO/LOOKS LIKE ITALY IS HAVING A GOOD BANK RUN/ITALY STOPS IMMIGRANTS FROM COMING INTO THE COUNTRY BUT SPAIN ALLOWS THEM TO COME: SPANIARDS ARE NOT TO HAPPY ABOUT THAT/ARGENTIA’S PESO PLUMMETS TO 26 TO ONE/THE BRAZILIAN REAL PLUMMETS TO 3.71 TO THE DOLLAR AS CONTAGION SPREADS/G7 MEETING ENDS WITH CHAOS AS TRUMP CALLS TRUDEAU MEAK/NUNES READY TO LAY OBSTRUCTION CHARGES ON THE DEPT OF JUSTICE/ MOR SWAMP STORIES FOR YOU TONIGHT/

 

GOLD: $1300.30 UP  $0.65 (COMEX TO COMEX CLOSINGS)

Silver: $16.91 UP  18 CENTS (COMEX TO COMEX CLOSINGS)

Closing access prices:

Gold $1298.90

silver: $16.93

For comex gold:

JUNE/

NUMBER OF NOTICES FILED TODAY FOR JUNE CONTRACT:309 NOTICE(S) FOR 30900 OZ.

TOTAL NOTICES SO FAR 6162 FOR 616200 OZ (19.166 tonnes)

For silver:

JUNE

13 NOTICE(S) FILED TODAY FOR

65,000 OZ/

Total number of notices filed so far this month: 907 for 4,535,000 oz

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Bitcoin: BID $6725/OFFER $6825: down $870(morning)

Bitcoin: BID/ $6693/offer $6793: DOWN $902  (CLOSING/5 PM)

end

First Shanghai gold fix comes at 10 pm est

The second Shanghai gold fix:  2:15 pm

First Shanghai gold fix gold: 10 pm est: 1305.33

NY price  at the same time: 1300.60

PREMIUM TO NY SPOT: $5.48

Second gold fix early this morning: 1303.37

USA gold at the exact same time:1298.47

PREMIUM TO NY SPOT:  $4.90

AGAIN, SHANGHAI REJECTS NEW YORK PRICING.

WE WILL NOT PROVIDE LONDON FIXES AS THEY ARE NOT ACCURATE AS TO WHAT IS GOING ON AT THE SAME TIME FRAME.

Let us have a look at the data for today

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In silver, the total OPEN INTEREST FELL BY A SMALL 53 CONTRACTS FROM  230,525 DOWN TO 230,413 ACCOMPANYING YESTERDAY’S SMALL 5 CENT FALL IN SILVER PRICING.    WE ARE NOW WITNESSING OUR USUAL AND CUSTOMARY COMEX LONG LIQUIDATION AS WE ENTERED INTO THE NON ACTIVE DELIVERY MONTH OF JUNE AS LONGS PACK THEIR BAGS AND MIGRATE OVER TO LONDON.  WE WERE  NOTIFIED THAT WE HAD A SMALL SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP: 810 EFP’S FOR JULY, 71 EFP’S FOR SEPT. AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 881 CONTRACTS. WITH THE TRANSFER OF 88CONTRACTS, 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 881 EFP CONTRACTS TRANSLATES INTO 4.405 MILLION OZ  ACCOMPANYING:

1.THE 5 CENT FALL IN  SILVER PRICE  AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES STANDING FOR JUNE COMEX DELIVERY. (4.545 MILLION OZ) DESPITE IT BEING A NON ACTIVE DELIVERY MONTH.

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

16,599 CONTRACTS (FOR 7 TRADING DAYS TOTAL 16,599 CONTRACTS) OR 82.99 MILLION OZ: (AVERAGE PER DAY: 2371 CONTRACTS OR 11.856 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH:  82.99 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 11.22% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)

ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S:            1,397.34      MILLION OZ.

ACCUMULATION FOR JAN 2018:                                               236.879     MILLION OZ

ACCUMULATION FOR FEB 2018:                                               244.95         MILLION OZ

ACCUMULATION FOR MARCH 2018:                                       236.67         MILLION OZ

ACCUMULATION FOR APRIL 2018:                                          385.75         MILLION OZ

ACCUMULATION FOR MAY 2018:                                            210.05       MILLION OZ

RESULT: WE HAD AN SMALL SIZED DECREASE IN COMEX OI SILVER COMEX OF 53 WITH THE TINY 5 CENT FALL IN SILVER PRICE.  WE HAVE NOW ENTERED THE NEW NON ACTIVE MONTH OF JUNE.   THE CME NOTIFIED US THAT IN FACT WE HAD AN SMALL SIZED EFP ISSUANCE OF 881 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 (SEE COMEX DATA) . FROM THE CME DATA:  810 EFP CONTRACTS FOR JULY,  71 EFP’S FOR SEPT. AND ZERO FOR ALL OVER MONTHS   FOR  A DELIVERABLE FORWARD CONTRACT OVER IN LONDON WITH A FIAT BONUS (TOTAL: 881). TODAY WE GAINED A SMALL: 726 TOTAL OI CONTRACTS  ON THE TWO EXCHANGES: i.e.881 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH AN DECREASE OF 53  OI COMEX CONTRACTS. AND ALL OF THIS HAPPENED WITH THE SMALL 5 CENT FALL IN PRICE OF SILVER  AND A CLOSING PRICE OF $16.73 WITH RESPECT TO FRIDAY’S TRADING. YET WE STILL HAVE A GIGANTIC AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY IN THIS NON  ACTIVE JUNE DELIVERY MONTH. IT SURE LOOKS LIKE A FAILED BANKER SHORT COVERING EXERCISE!!

In ounces AT THE COMEX, the OI is still represented by OVER 1 BILLION oz i.e. 1.151 MILLION OZ TO BE EXACT or 164% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT JUNE MONTH/ THEY FILED AT THE COMEX: 13 NOTICE(S) FOR 65,000 OZ OF SILVER

IN SILVER, WE HAVE NOW SET THE NEW RECORD OF OPEN INTEREST AT 243,411 AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $16.51  ON APRIL 9.2018. (AND IN LOOKS LIKE WE ARE GOING TO SEE ANOTHER RECORD HIT THIS MONTH)

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH: 27 MILLION OZ , APRIL: 2.485 MILLION OZ AND MAY: 36.285 MILLION OZ /AND JUNE  (4.545 MILLION OZ SO FAR)
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/ (FINAL)

AND YET, WITH THE EXTREMELY HIGH EFP ISSUANCE, WE HAVE A CONTINUAL LOW PRICE OF SILVER DESPITE THE ABOVE HUGE DEMAND.  TO ME THE ONLY ANSWER IS THAT WE HAVE SOVEREIGN  (CHINA) WHO IS ENDEAVOURING TO GOBBLE UP ALL AVAILABLE PHYSICAL SILVER NO MATTER WHERE, EXACTLY WHAT J.P.MORGAN IS DOING. AND IT IS MY BELIEF THAT J.P.MORGAN IS HOLDING ITS SILVER FOR ITS BENEFICIAL OWNER..THE USA GOVERNMENT WHO IN TURN IS HOLDING THAT SILVER FOR CHINA.(FOR A SILVER LOAN REPAYMENT). IT ALSO LOOKS LIKE BANKER CAPITULATION IN SILVER AS THEY STRUGGLE TO REMOVE SOME OF THEIR HUGE OBLIGATIONS.

In gold, the open interest FELL BY A CONSIDERABLE 3462 CONTRACTS DOWN TO 446,905 DESPITE THE TINY LOSS IN THE GOLD PRICE/YESTERDAY’S TRADING (FALL OF $0.10).  WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF JUNE. NO DOUBT THE BOYS ARE CASHING IN THEIR COMEX LONGS TO BEGIN THE PROCESS TO MOVE INTO LONDON FORWARDS.  THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A FAIR SIZED 5110 CONTRACTS :   JUNE SAW THE ISSUANCE OF 0 CONTRACTS , AND AUGUST SAW THE ISSUANCE OF:  5110 CONTRACTS WITH ALL OTHER MONTHS ZERO.  The new OI for the gold complex rests at 446,905. 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. . 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 SMALL SIZED OI GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES: 3462 OI CONTRACTS DECREASED AT THE COMEX AND A FAIR SIZED 5,110 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN:1648 CONTRACTS OR 164,800 OZ = 5.12 TONNES. AND ALL OF THIS DEMAND OCCURRED WITH A TINY LOSS OF $0.10

FRIDAY, WE HAD 19,617  EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAY : 71,423 CONTRACTS OR 7,142,300  OZ OR 222.155 TONNES (7 TRADING DAYS AND THUS AVERAGING: 10,203 EFP CONTRACTS PER TRADING DAY OR 1,020,300 OZ/ TRADING DAY),,

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 7 TRADING DAYS IN  TONNES: 222.16 TONNES

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

THUS EFP TRANSFERS REPRESENTS 222.16/2550 x 100% TONNES =  8.71% OF GLOBAL ANNUAL PRODUCTION SO FAR IN APRIL ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:  3,673.98*  TONNES   *SURPASSED ANNUAL PROD’N

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

ACCUMULATION OF GOLD EFP’S FOR FEBRUARY 2018:         649.45 TONNES

ACCUMULATION OF GOLD EFP’S FOR MARCH 2018:                741.89 TONNES  (22 TRADING DAYS)

ACCUMULATION OF GOLD EFP’S FOR APRIL 2018:                   713.84 TONNES  (21 TRADING DAYS)

ACCUMULATION OF GOLD EFP’S FOR MAY 2018:                     693.80 TONNES ( 22 TRADING DAYS)

WHAT IS ALARMING TO ME, ACCORDING TO OUR LONDON EXPERT ANDREW MAGUIRE IS THAT THESE EFP’S ARE BEING TRANSFERRED TO WHAT ARE CALLED SERIAL FORWARD CONTRACT OBLIGATIONS AND THESE CONTRACTS ARE LESS THAN 14 DAYS.  ANYTHING GREATER THAN 14 DAYS, THESE MUST BE RECORDED AND SENT TO THE COMPTROLLER, GREAT BRITAIN TO MONITOR RISK TO THE BANKING SYSTEM.  IF THIS IS INDEED TRUE, THEN THIS IS A MASSIVE CONSPIRACY TO DEFRAUD AS WE NOW WITNESS A MONSTROUS TOTAL EFP’S ISSUANCE AS IT HEADS INTO THE STRATOSPHERE

Result: A CONSIDERABLE SIZED DECREASE IN OI AT THE COMEX OF 3462 DESPITE THE TINY $0.10 LOSS IN PRICE // GOLD TRADING YESTERDAY ($0.10 FALL) WE ALSO HAD AN FAIR SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 5110 CONTRACTS AS THESE HAVE ALREADY BEEN NEGOTIATED AND CONFIRMED.   THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX.  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 5110 EFP CONTRACTS ISSUED, WE HAD AN  NET  GAIN OF 1648 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

5110 CONTRACTS MOVE TO LONDON AND 3462 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 4.14 TONNES). ..AND BELIEVE IT OR NOT BUT ALL OF THIS DEMAND OCCURRED AT THE COMEX WITH A TINY LOSS OF $0.10 IN TRADING!!!.

we had: 309 notice(s) filed upon for 30,900 oz of gold at the comex.

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

GLD...

WITH GOLD  UP $0.65  TODAY: / A HUGE CHANGES IN GOLD INVENTORY AT THE GLD/ THE CROOKS ORCHESTRATED A RAID ON INVENTORY OF 3.83 TONNES AS THIS GOLD WAS BADLY NEEDED SOMEWHERE/GLD INVENTORY 828.76 TONNES

Inventory rests tonight: 828.76 tonnes.

SLV/

WITH SILVER UP 18 CENTS TODAY / NO CHANGES IN THE SILVER INVENTORY AT  THE SLV/

/INVENTORY RESTS AT 319.266 MILLION OZ/

end

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

1. Today, we had the open interest in SILVER FELL BY AN SMALL SIZED 53 CONTRACTS from  230,466 DOWN TO 230,413 (AND, FURTHER FROM  THE  NEW COMEX RECORD SET /APRIL 9/2017 AT 243,411/SILVER PRICE AT THAT DAY: $16.53). THE PREVIOUS RECORD OTHER THAN WAS ESTABLISHED AT: 234,787, SET ON APRIL 21.2017 OVER ONE YEAR AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89. OUR CUSTOMARY MIGRATION OF COMEX LONGS MORPH INTO LONDON FORWARDS CONTINUES AS OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE:   (WE DO NOT GET A LOOK AT THESE CONTRACTS AS IT IS PRIVATE BUT THE CFTC DOES AUDIT THEM), 810 EFP’S FOR JULY, 71 EFP CONTRACTS FOR SEPT. AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 881 CONTRACTS . EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  OI LOSS AT THE COMEX OF 53 CONTRACTS TO THE 881 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A GAIN OF 726 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES:  3.63 MILLION OZ!!! AND THIS FAIR SIZED DEMAND OCCURRED DESPITE JUST A TINY 5 CENT FALL IN PRICE .  THE BANKERS ORCHESTRATED THEIR RAID THROUGHOUT LAST WEEK  DESPERATELY TRYING TO PARE THEIR GIGANTIC OPEN INTEREST SHORT ON BOTH EXCHANGES BUT TO NO AVAIL. JUDGING BY THE RECORD NUMBER OF EFP ISSUANCE DURING APRIL AT 385.75 MILLION OZ AND THE CONTINUAL OI GAIN ON THE TWO EXCHANGES, THE CONSTANT RAIDS, (THAT ARE NOW BEING CALLED UPON BY OUR BANKER FRIENDS  IN AN ATTEMPT TO SHAKE AS MANY SILVER LEAVES FROM THE SILVER TREE AS POSSIBLE) AND JUDGING BY THE RESULTS FROM YESTERDAYS ACTION, THEY HAVE NOT BEEN AT ALL SUCCESSFUL.

RESULT: A SMALL SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 5 CENT LOSS  IN SILVER PRICING YESTERDAY. BUT WE ALSO HAD ANOTHER SMALL SIZED 881 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR JUNE, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY 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/SUNDAY NIGHT: Shanghai closed DOWN 14.37 points or 0.47%   /Hang Sang CLOSED UP 105.49 points or 0.34%    / The Nikkei closed UP 109.54 POINTS OR 0.48% /Australia’s all ordinaires CLOSED DOWN .21%  /Chinese yuan (ONSHORE) closed UP at 6.4045/Oil DOWN to 64.93 dollars per barrel for WTI and 75.63 for Brent. Stocks in Europe OPENED ALL GREEN//.  ONSHORE YUAN CLOSED UP AT 6.4045 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.3973/ONSHORE YUAN TRADING WEAKER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING MUCH STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING MUCH STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW LOOKS LIKE A FULL TRADE WAR IS BEGINNING/

/NORTH KOREA/SOUTH KOREA

i)North Korea/South Korea/USA

Pompeo reports that North Korea is making progress in their talks at denuclearization

(courtesy zerohedge)

b) REPORT ON JAPAN

3 c CHINA

i)Points to consider:

  1. China’s GDP is 11 trillion
  2. China’s total debt 2018: 31 trillion uSA dollars
  3. China’s  Central bank balance sheet is 50 trillion USA dollars equiv.
  4.  China’s debt is growing faster than marginal utility and this is unsustainable

( Peter Stoferle/Mises Institute)

4. EUROPEAN AFFAIRS

i)ITALY

Something is scaring Italian depositors as they are removing funds from Italian banks and placing them in foreign accounts..probably a German or Dutch account.

( zero hedge)

ii)Austria/Turkey

this does not look good:  Erdogan warns the Austrian government that Mosque closures could lead to religious wars
(courtesy zerohedge)
iii)Do not worry about Tria’s comments;  this is just the opening.  Eventually Italian debt must be looked at and yes, he may like the Euro but probably not the European Union.  In other words it would be far better for Italy to be out of the EU but they can still be in euro just like Britain. 

( zero hedge)

iv)ITALY

this is a given:  Salvini states that Italy will no longer accept refugees . However Spain volunteers that they will accept migrant that which Italy refuses.
the Spanish people must be angry at this
(courtesy zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

6 .GLOBAL ISSUES

7. OIL ISSUES

8. EMERGING MARKET

ARGENTINA

The Argentinian peso falls to 26 to the dollar coupled with a fall in the Brazilian Real to 3.71 to the dollar as contagion is spreading past with respect to our emerging markets.  The dollar scarcity is certainly having its deleterious effect

(courtesy zerohedge)

9. PHYSICAL MARKETS

i)this is a give:  Trump’s pursuit of isolationism will without question undermine its reserve state . Quite possibly Trump is asking the world to find a better alternative
( Basak.Bloomberg)

ii)The following is self explanatory( GATA/Chris Powell and Harvey Organ)

iii)Bitcoin tumbles after the major crypto exchanges subpoenaed for manipulation

( zerohedge)
iv)Swiss voters get it:  they reject a radical sovereign money lan in a huge landslide defeat.( Bloomberg/GATA)

v)Craig Hemke:  Social Security deficit will be monetized by the government as they continue to spend taxpayers money.  Craig is correct that this will lead to the devaluation of the USA dollar and a wicked inflation.

( Craig Hemke/Sprott)

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

i)USA DATA

ii)MARKET DATA

This will have a terrible effect on USA business growth: Striking UPS workers walkout and it is over 90% of the company’s union members

iii)The G7 meeting did not go over well with Trump insisting on fair trade and the elimination of foreign subsidies and huge tariffs vs the small tariffs the USA places on good arriving from abroad

He states that the uSA will no longer be the “piggy bank that everybody is robbing”

( zerohedge)

iv)Trump states that Canadian Prime Minister Trudeau lied to him and others at the G7 meeting and thus he refuses to endorse the final statement.  Canada will respond to the tariffs imposed on  imports of steel and aluminum into the USA.  Trump claims and he is probably correct that Canada protects its dairy industry and imposes a huge tariff of 270% on dairy products arriving from the uSA in order for Canada to compete.
( zerohedge)

v)SWAMP STORIES

a)What a joke:  the Dept of Justice reneges on its commitment to provide the necessary Trump-Russia documents to Congress

( Sara Carter)

b)Nunes slams the Dept of Justice for Obstruction on FBI spy documents on Stefan Halper

( zero hedge)

Let us head over to the comex:

The total gold comex open interest FELL BY A CONSIDERABLE SIZED 3462 CONTRACTS DOWN to an OI level 446,905 DESPITE THE TINY FALL IN THE PRICE OF GOLD ($0.10 LOSS/ FRIDAY’S TRADING).   FOR TWO YEARS STRAIGHT WE HAVE NOTICED THAT ONE WEEK PRIOR TO FIRST DAY NOTICE OF AN ACTIVE DELIVERY MONTH THE COMEX OPEN INTEREST CONTRACTS AND EFP’S NOTICES EXPONENTIALLY INCREASE.   THE CME REPORTS THAT THE BANKERS ISSUED A FAIR SIZED  COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 5110 CONTRACTS WERE ISSUED: FOR  JUNE, 0 CONTRACTS ISSUED,  FOR AUGUST 5110 CONTRACTS AND ZERO FOR ALL OTHER MONTHS:

TOTAL  5110 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 BASED FORWARD.

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES: 2,029 OI CONTRACTS IN THAT 5110 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST 3081 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES: 1648 contracts OR 16,480  OZ OR 5.129 TONNES.

Result: A CONSIDERABLE SIZED DECREASE IN COMEX OPEN INTEREST DESPITE THE TINY LOSS IN PRICE /FRIDAY  (ENDING UP WITH AN LOSS IN PRICE OF $0.10).  THE  TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES:  1648 OI CONTRACTS..

We have now entered the active contract month of JUNE where we LOST 3829 contracts and that leaves us with 1387 contracts  We had 4049 notices filed upon yesterday so we SURPRISINGLY GAINED A GOOD 220 CONTRACTS OR AN ADDITIONAL 22,000 OZ WILL STAND TO DELIVERY AT THE COMEX AS THESE GUYS REFUSED THE SWEETNER FIAT OFFERED BY THE BANKERS.  I GUESS YOU CAN STATE THAT THIS IS CLOSE TO BACKWARDATION IN NY IN GOLD AS OWNERS REFUSE TO TAKE A GUARANTEED PROFIT TO OBTAIN A LOWER PRICED FUTURE CONTRACT FOR FEAR THAT THE PHYSICAL IS JUST NOT THERE WHEN THE FUTURE COMES DUE!!

.JULY saw a LOSS of 7 contracts to stand at 1354.  The next big delivery month after June is August and here the OI FELL BY 2143 contracts DOWN to 321,530.

AFTER AUGUST, THE NEXT ACTIVE DELIVERY MONTH IS OCTOBER AND HERE THE OI ROSE BY 194 CONTRACTS UP TO 11,789 CONTRACTS.

We had 309 notice (s) filed upon today for 30,900 oz at the comex

FOR COMPARISON:

FOR THE JUNE/2017 CONTRACT INITIALLY 19.95 TONNES STOOD FOR DELIVERY.  AT THE END OF JUNE/2017:  9.176 TONNES STOOD AND THE REST MORPHED INTO LONDON BASED FORWARDS.

Trading Volumes on the COMEX

PRELIMINARY COMEX VOLUME FOR TODAY: 206,989  contracts

CONFIRMED COMEX VOL. FOR YESTERDAY:  232,664   contracts

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And now for the wild silver comex results.

Total silver OI FELL BY A SMALL SIZED 53 CONTRACTS FROM 230,466 UP TO 230,413 (AND A TOUCH FURTHER FROM THE NEW RECORD OI FOR SILVER SET APRIL 9.2018/ 243,411 CONTRACTS)  DESPITE THE TINY 5 CENT LOSS IN SILVER PRICING/ FRIDAY. SINCE WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF JUNE, WE WERE  INFORMED THAT WE HAD A SMALL SIZED 810 EFP CONTRACT ISSUANCE FOR JULY, 71 EFP CONTRACTS FOR SEPT. AND ZERO FOR ALL OTHER MONTHS.  THESE EFPS WERE ISSUED TO COMEX LONGS WHO RECEIVED A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  THE TOTAL EFP’S ISSUED: 881.  ON A NET BASIS WE GAINED 828 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A 53 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 881 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN  ON THE TWO EXCHANGES:  828 CONTRACTS

AMOUNT STANDING FOR SILVER AT THE COMEX

We are now in the NON active delivery month of JUNE and here the front month FELL BY contract FALLING TO 15 contracts. We had 14 notices filed upon yesterday so we gained 13 contracts or an additional 65,000 oz will stand in this non active delivery month of June AS SOMEBODY IS IN URGENT NEED OF PHYSICAL ON THIS SIDE OF THE POND AND QUEUE JUMPING CONTINUES IN EARNEST

The next big active delivery month for silver is July and here the OI LOST 3311 contracts DOWN to 133,519.  The next delivery month is August and here we LOST 1 contract  to stand at 41. The next active delivery month after August for silver is September and here the OI ROSE by 2032 contracts UP to 61,396

We had 13 notice(s) filed for 70,000 OZ for the JUNE 2018 COMEX contract for silver

PLEASE NOTE THE FOLLOWING FOR COMPARISON PURPOSES:

ON MAY 31.2017 WE INITIALLY HAD 396 OPEN INTEREST STAND OR A LARGE 1.98 MILLION OZ 

STOOD FOR METAL.

AT THE CONCLUSION OF JUNE 2017:  4.92 MILLION OZ FINALLY STOOD AS QUEUE JUMPING STARTED IN EARNEST AND IN THE ENSUING YEAR, IT CONTINUED WITH RECKLESS ABANDON INCLUDING WHAT YOU ARE WITNESSING TODAY

INITIAL standings for JUNE/GOLD

JUNE 11/2018.

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
309 notice(s)
 30900 OZ
No of oz to be served (notices)
1078 contracts
(107,800 oz)
Total monthly oz gold served (contracts) so far this month
6162 notices
616,200 OZ
19.166 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz
gold comex comatose despite June being a huge delivery month.
 TODAY, WE HAVE  A TINY  PULSE AT THE GOLD COMEX/ BUT AGAIN NO GOLD ENTERS.
we had 0 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 withdrawal out of the customer account:
total customer withdrawals:  nil oz
to which this landed as a deposit in JPMorgan:
we had 0 customer deposit
total customer deposits: nil oz
AND I WAS WAITING FOR THIS:
we had 1 adjustment(s)
rarely used International Delaware was called into service as they adjusted 41,184.156 oz of gold and this landed into the dealer account and this will be used to deliver upon.

For JUNE:

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 309 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 125 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
To calculate the INITIAL total number of gold ounces standing for the JUNE. contract month, we take the total number of notices filed so far for the month (6162) x 100 oz or 616,200 oz, to which we add the difference between the open interest for the front month of JUNE. (1387 contracts) minus the number of notices served upon today (309 x 100 oz per contract) equals 724,000 oz, the number of ounces standing in this active month of JUNE (22.519 tonnes)

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

No of notices served (6162 x 100 oz)  + {(1387)OI for the front month minus the number of notices served upon today (309 x 100 oz )which equals 724,000 oz standing in this  active delivery month of JUNE .

WE GAINED 220 CONTRACTS OR AN ADDITIONAL 22000 OZ WILL STAND FOR DELIVERY AS QUEUE JUMPING IS STARTING TO INTENSIFY AT THE GOLD COMEX SOMETHING THAT WHICH WE HAVE WITNESSED IN SILVER FOR THE PAST YEAR. 

“THERE ARE ONLY 21.69 TONNES OF REGISTERED GOLD AVAILABLE FOR DELIVERY AGAINST 22.519 TONNES STANDING  WHICH IS MAKING THIS JUNE CONTRACT MONTH AN EXTREMELY INTERESTING ONE TO WATCH 

total registered or dealer gold:  697.363.540 oz or 21.69 tonnes
total registered and eligible (customer) gold;   9,014,904.206 oz 280.401 tonnes

IN THE LAST 18 MONTHS 74 NET TONNES HAS LEFT THE COMEX.

end

And now for silver

AND NOW THE APRIL DELIVERY MONTH

JUNE INITIAL standings/SILVER

JUNE 11/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
 597,642.656 oz
CNT
Deposits to the Dealer Inventory
nil;
oz
Deposits to the Customer Inventory
356,791.320
oz
jpmorgan
No of oz served today (contracts)
13
CONTRACT(S)
(65,000 OZ)
No of oz to be served (notices)
2 contracts
(10,000 oz)
Total monthly oz silver served (contracts) 907 contracts

(4,535,000 oz)

Total accumulative withdrawal of silver from the Dealers inventory this month NIL oz
Total accumulative withdrawal of silver from the Customer inventory this month

we had 0 inventory movement at the dealer side of things

total dealer deposits: nil oz

we had 1 deposits into the customer account

i) Into JPMorgan: 597,642.656 oz

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

JPMorgan now has 140 million oz of  total silver inventory or 52.3% of all official comex silver. (140 million/268 million)

total customer deposits today: 597,642.656 oz

we had 1 withdrawals from the customer account;

i) Out of CNT:597,642.656

total withdrawals;  597,642.656 oz

we had 0  adjustment/

total dealer silver:  66.072 million

total dealer + customer silver:  270.081 million oz

The total number of notices filed today for the JUNE. contract month is represented by 13 contract(s) FOR 65,000 oz. To calculate the number of silver ounces that will stand for delivery in JUNE., we take the total number of notices filed for the month so far at 907 x 5,000 oz = 4,535,000 oz to which we add the difference between the open interest for the front month of JUNE. (15) and the number of notices served upon today (13 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JUNE contract month: 907(notices served so far)x 5000 oz + OI for front month of JUNE(15) -number of notices served upon today (13)x 5000 oz equals 4,545,000 oz of silver standing for the JUNE contract month

We gained 13 contracts or an additional 65,000 oz will stand in this non active delivery month of June as somebody was in urgent need of silver. IN SILVER QUEUE JUMPING HAS BEEN THE NORM FOR OVER A YEAR. IT LOOKS LIKE GOLD WANTS TO JOIN ITS WEAKER SISTER IN THIS SAME PHENOMENON

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

ESTIMATED VOLUME FOR TODAY: 83,451 CONTRACTS

CONFIRMED VOLUME FOR YESTERDAY:85,424 CONTRACTS

YESTERDAY’S CONFIRMED VOLUME OF  85,424 CONTRACTS EQUATES TO 427 MILLION OZ  OR 103% OF ANNUAL GLOBAL PRODUCTION OF SILVER

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

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

end

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV FALLS TO -2.96% (JUNE 11/2018)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.47% to NAV (JUNE 11/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -2.96%-/Sprott physical gold trust is back into NEGATIVE/ territory at -0.47%/Central fund of Canada’s is still in jail but being rescued by Sprott.
Sprott WINS hostile 3.1 billion bid to take over Central Fund of Canada

(courtesy Sprott/GATA)

3.SPROTT CEF.A FUND (FORMERLY CENTRAL FUND OF CANADA): NAV FALLS TO -2.44%: NAV 13.62/TRADING 13.27//DISCOUNT 2.47.

END

And now the Gold inventory at the GLD/

JUNE 1/WITH GOLD UP 65 CENTS/THE CROOKS RAIDED THE COOKIE JAR FOR 3.83 TONNES/INVENTORY RESTS AT 828.76 TONNES

JUNE 8/WITH GOLD DOWN 10 CENTS/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 832.59 TONNES./

JUNE 7/WITH GOLD UP $1.45, THE CROOKS DECIDED TO RAID AGAIN THE GLD GOLD COOKIE JAR TO THE TUNE OF 3.54 TONNES/GOLD INVENTORY LOWERS TO 832.59 TONNES

JUNE 6/WITH GOLD UP $1.30 TODAY, WE HAD NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 836.13 TONNES

JUNE 5/WITH GOLD UP $5.30 TODAY, WE HAD A TINY WITHDRAWAL OF .29 TONNES AND THAT NO DOUBT WAS TO PAY FOR FEES/836.13 TONNES

JUNE 4/WITH GOLD DOWN ONLY $2.50, THE CROOKS UNLEASHED A MASSIVE WITHDRAWAL OF 10.61 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 836.42 TONNES

JUNE 1/WITH GOLD DOWN $5.10 TODAY, A HUGE 4.42 TONNES OF GOLD WAS WITHDRAWN FROM THE GLD AND THIS WAS USED IN THE RAID TODAY/INVENTORY RESTS AT 847.03 TONNES

MAY 31/WITH GOLD DOWN 1.60/NO CHANGE IN GOLD INVENTORY/INVENTORY REMAINS AT 851.45 TONNES

MAY 30/WITH GOLD UP $2.70: A HUGE DEPOSIT OF 2.95 TONNES INTO THE GLD/INVENTORY REMAINS AT 851.45 TONNES

MAY 29/2018/WITH GOLD DOWN $4.50/ NO CHANGES IN GLD INVENTORY/INVENTORY REMAINS AT 848.50 TONNES

May 25/WITH GOLD UP ON THE WEEK BUT DOWN 80 CENTS TODAY: WE HAD A HUGE 3.54 TONNES OF GOLD WITHDRAWAL FROM THE CROOKED GLD/

MAY 24/WITH GOLD UP $12.40/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 852.04

MAY 22/WITH GOLD UP $1.05/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 852.04 TONNES

MAY 21/WITH GOLD DOWN 50 CENTS/A HUGE CHANGE IN GOLD INVENTORY/A WITHDRAWAL OF 3.24 TONNES FORM GLD INVENTORY/INVENTORY RESTS AT 852.04 TONNES

MAY 18/WITH GOLD UP $1.80/A HUGE CHANGE IN GOLD INVENTORY AT THE GLD/ A DEPOSIT OF 9.11 TONNES INTO GLD INVENTORY/INVENTORY RESTS AT 865.28 TONNES/

GLD WAS ONE MASSIVE FRAUD

May 17/WITH GOLD DOWN $1.75/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 856.17 TONNES

MAY 16./WITH GOLD UP $1.05: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 856.17 TONNES

MAY 15/WITH GOLD DOWN $27.35, THE CROOKS WITHDREW 10 TONNES OF GOLD FROM THE GLD WHICH WAS USED IN THE RAID TODAY/INVENTORY RESTS AT 856.17 TONNES

MAY 14/ WITH GOLD DOWN $2.35: A HUGE DEPOSIT OF 4.68 TONNES OF GOLD INTO THE GLD and then a withdrawal of 1.48 tonnes /INVENTORY RESTS AT 866.17

A net gain of 3.2 tonnes of gold.

MAY 11/WITH GOLD DOWN $1.75/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 862.96 TONNES/

MAY 10/WITH GOLD UP $9.60/A WITHDRAWAL OF 1.17 TONNES FROM THE GLD/INVENTORY RESTS AT 862.96 TONNES/SUCH CROOKS

MAY 9/WITH GOLD DOWN $0.55/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 864.13 TONNES

MAY 8/WITH GOLD DOWN $0.10/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 864.13 TONNES

MAY 7/WITH GOLD DOWN $0.55/ANOTHER WITHDRAWAL OF 1.47 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 864.13 TONNES

MAY 4/WITH GOLD UP $2.05/A WITHDRAWAL OF 1.13 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 865.60 TONNES

MAY 3/WITH GOLD UP $7.05/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 866.77 TONNES

MAY 2/WITH GOLD DOWN $1.15/ A HUGE WITHDRAWAL OF 4.43 TONNES FROM THE GLD/INVENTORY RESTS AT 866.77 TONNES

MAY 1/WITH GOLD DOWN $12.15/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 871.20 TONNES

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

JUNE 8/2018/ Inventory rests tonight at 828,76 tonnes

*IN LAST 394 TRADING DAYS: 97.83 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 344 TRADING DAYS: A NET 58.47 TONNES HAVE NOW BEEN ADDED INTO GLD INVENTORY.

end

Now the SLV Inventory/

JUNE 11/WITH SILVER UP 18 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 319.266 MILLION OZ/

JUNE 8/WITH SILVER DOWN 5 CENTS/A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.412 MILLION OZ//INVENTORY LOWERS TO 319.266 MILLION OZ/

JUNE 7/WITH SILVER UP ANOTHER 12 CENTS/A HUGE CHANGE IN SILVER INVENTORY AT THE SL: A WITHDRAWAL OF 1.883 MILLION OZ WITH ALL OF THAT SILVER DEMAND//INVENTORY RESTS AT 320.678 MILLION OZ/

JUNE 6/WITH SILVER UP 14 CENTS TODAY/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 322.561 MILLION OZ/

JUNE 5/WITH SILVER UP 10 CENTS NO CHANGE IN SILVER INVENTORY/INVENTORY RESTS AT 322.561 MILLION OZ

JUNE 4/WITH SILVER DOWN 1 CENTA SMALL CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 522,000 OZ INTO THE SLV/.INVENTORY RISES AT 322.561 MILLION OZ/

JUNE 1/WITH SILVER DOWN 3 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 322.039 MILLION OZ/

MAY 31/WITH SILVER DOWN 7 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 322.039 MILLION OZ/

MAY 30/WITH SILVER UP 16 CENTS: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV/ A DEPOSIT OF 2.071 MILLION OZ/INVENTORY RESTS AT 322.039 MILLION OZ/

MAY 29.2018/ NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.968 OZ

May 25/INVENTORY LOWERS TO 319.968 AS WE HAD A WITHDRAWAL OF 1.035 MILLION OZ

MAY 24/WITH SILVER UP 27 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 321.003 MILLION OZ/

MAY 22/WITH SILVER UP 6 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 321.003 MILLION OZ/

MAY 21/ WITH SILVER UP 5 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 321.003 MILLION OZ/

MAY 18/WITH SILVER DOWN 5 CENTS  A SMALL CHANGE IN SILVER INVENTORY AT THE SLV/ A WITHDRAWAL OF 942,000 OZ/INVENTORY RESTS AT 321.003 MILLION OZ/

May 17/WITH GOLD UP 6 CENTS/A SMALL CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 471,000 OZ//INVENTORY RESTS AT 321.945 MILLION OZ/

MAY 16./WITH SILVER UP 10 CENTS/A HUGE DEPOSIT OF 1.883 MILLION OZ OF SILVER INTO THE SLV/INVENTORY RESTS AT 321.474 MILLION OZ

MAY 15/WITH SILVER DOWN 33 CENTS, NO CHANGES AT THE SLV; THE CROOKS COULD NOT BORROW ANY SILVER BECAUSE THERE IS NONE: INVENTORY RESTS AT 319.591 MILLION OZ

MAY 14/WITH SILVER DOWN 10 CENTS/A SMALL CHANGES IN SILVER INVENTORY AT THE SLV/ A WITHDRAWAL OF 858,000 FROM THE SLV/INVENTORY RESTS AT 319.591 MILLION OZ/

MAY 11/WITH SILVER DOWN 2 CENTS/THE CROOKS WITHDREW A MONSTROUS 2.824 MILLION OZ FROM THE SLV INVENTORY/INVENTORY RESTS AT 320.439 MILLION OZ/

MAY 10/WITH SILVER UP 22 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 323.263 MILLION OZ/

MAY 9/WITH SILVER UP 6 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 323.263 MILLION OZ/

MAY 8/WITH SILVER DOWN 2 CENTS:NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 323.263 MILLION OZ.

MAY 7/WITH SILVER FLAT: A BIG CHANGE IN SILVER INVENTORY AT THE SLV// A WITHDRAWAL OF 942,000 OZ OF SILVER FROM THE SLV INVENTORY/INVENTORY RESTS AT 323.263 MILLION OZ/

MAY4/WITH SILVER UP 5 CENTS/A BIG CHANGES IN SILVER INVENTORY AT THE SLV/ A DEPOSIT OF 1.224 MILLION OZ/INVENTORY RESTS AT 324.205 MILLION OZ/

MAY 2/WITH SILVER UP 24 CENTS/A HUGE CHANGE IN SILVER INVENTORY AT THE SLV// A DEPOSIT OF 6.082 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 322.981 MILLION OZ/

MAY 1/WITH SILVER DOWN 24 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.899 MILLION OZ/

JUNE 11/2018:

Inventory 319.266 million oz

end

6 Month MM GOFO 2.18/ and libor 6 month duration 2.49

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

G0FO+ 2.18%

libor 2.49 FOR 6 MONTHS/

GOLD LENDING RATE: .31%

XXXXXXXX

12 Month MM GOFO
+ 2.74%

LIBOR FOR 12 MONTH DURATION: 2.57

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.14

end

end

Major gold/silver trading /commentaries for MONDAY

GOLDCORE/BLOG/MARK O’BYRNE.

GOLD/SILVER

end

ANDREW MAGUIRE’S KINESIS WHICH IS A”BITCOIN’ BACKED 100% BY ALLOCATED GOLD AND SILVER

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)

 Dear Harvey Organ,

Thank you for your participation in our webinar on June 7th with our host and CEO of Kinesis, Thomas Coughlin.

The response we received has been incredible, we appreciate you taking the time to join us and hope you found it to be beneficial.

Due to such a high influx of questions we received we were unable to have them all answered. Nevertheless, if there was anything which requires more clarification, or you have a query which needs to be rectified, we invite you to join our telegram group:

https://t.me/kinesismoney

We apologize for the technical issues we incurred during the webinar which resulted in it running a little over schedule, we hope that the next one we host will run seamlessly.

A video has been put together and uploaded onto our YouTube channel which can be found here:

Kinesis Webinar

Please share and subscribe to our YouTube channel to be notified of all the latest videos as they become available.

The rapid growth that we are currently experiencing has been incredible and with your support, is only going to get better.

We are working behind the scenes very hard to create a better experience for everyone involved! Stay tuned in as we have many more announcements to be released in the upcoming days.

Kind Regards,

Kinesis Money
a:C/O ILS Fiduciaries (IOM) Limited, First Floor,Millennium House, Victoria Road, Douglas, Isle of Man IM2 4RW
    
END
this is a give:  Trump’s pursuit of isolationism will without question undermine its reserve state . Quite possibly Trump is asking the world to find a better alternative
(courtesy Basak.Bloomberg)

U.S. unilateralism invites world to seek alternative to dollar, Lazard CEO says

 Section: 

Lazard CEO Says Crypto Shows Reserve Status Isn’t Assured for the U.S. Dollar

By Sonali Basak
Bloomberg News
Thursday, June 7, 2018

U.S. isolationism could undermine the dollar’s status as the world’s reserve currency, Lazard Ltd. Chief Executive Officer Ken Jacobs said.

“To the extent that we have a unilateral foreign policy and a unilateral trade policy, we’re sort of tempting the world to find an alternative,” Jacobs said in a Bloomberg Television interview aired today. “Probably the greatest demonstration of soft power is the fact that the U.S. has the reserve currency of the world.”

The U.S. dollar has been the international currency of choice for more than half a century because of its stability in global markets. That keeps a lid on borrowing costs in America and helps fund the U.S. budget deficit as trading partners place their dollars in Treasuries. Threats to that status are still far off, Jacobs said, because the main currencies in Europe and China are unlikely replacements.

Still, “there’s enough technology out in the world today with cryptocurrency and changes going on that you can imagine, if you let your mind wander a little bit, that something becomes an alternative in the future,” he said. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-06-07/u-s-tempts-dollar-s-f…

end

The following is self explanatory

(courtesy GATA/Chris Powell and Harvey Organ)

GATA asks bank regulator to check risks of gold

futures maneuver

 Section: 

12:21p ET Sunday, June 10, 2018

Dear Friend of GATA and Gold:

GATA has appealed to the U.S. comptroller of the currency, who has regulatory authority over banks, to review financial risks certain banks may have incurred through derivatives in the monetary metals markets, particularly through the recent heavy use of the “exchange for physicals” mechanism of settling gold and silver futures contracts on the New York Commodities Exchange.

The appeal was made in a letter sent May 5 to the comptroller, Joseph M. Otting, whose office is part of the U.S. Treasury Department, by your secretary/treasurer and GATA futures market consultant Harvey Organ.

“Exchange for physical” settlements of futures contracts long were considered emergency procedures when a seller was not able to deliver metal from an exchange-approved warehouse and wanted to settle with delivery elsewhere. But now such settlements appear to constitute most gold and silver futures settlements on the Comex. It is a strange development that appears to have been necessitated by the increasing difficulties of central banking’s gold and silver price suppression policy.

GATA has received no acknowledgment of the letter. Its text is below and a PDF copy of it is here:

http://www.gata.org/files/ComptrollerOfCurrencyLetter.pdf

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

* * *

May 5, 2018

Joseph M. Otting, Comptroller of the Currency
U.S. Treasury Department
400 7th Street, SW
Washington DC 20219

Dear Comptroller Otting:

Please let us bring to your attention financial risks to major banks involving their possibly unreported exposure to derivatives in the monetary metals markets.

In recent months gold and silver future contracts issued by U.S. banks on the New York Commodities Exchange have been moved off-exchange for delivery through a mechanism known as “exchange for physical” (EFP) contracts. Until recently use of this mechanism was considered an emergency procedure when a seller did not have access to metal for delivery through Comex warehouses. Now the mechanism seems to be in use for a large share of front-month contracts for which delivery is sought.

Here is an example that is happening at the Comex in the front active month of April for gold and the inactive delivery month of April for silver.

In gold, there were 229,436 EFP contracts for 713.64 tonnes, an average of 10,925 contracts and 1,092,500 ounces per trading day.

In silver, there were 77,150 EFP contracts for 385,750,000 ounces, an average of 3,673 contracts and 18,369,000 ounces per trading day.

London Bullion Market Association rules suggest that these contracts may not be reported to regulators. The LBMA’s bylaws say:

“Figures above exclude any contracts not subject to risk-based capital requirements, such as FX contracts with an original maturity of 14 days or less, futures contracts, written options, and basis swaps. Therefore, the total notional amount of derivatives by maturity will not add to the total derivatives figure in this table.”

We are told that these EFP contracts are transferred from the Comex to London as what are called “serial forwards” and their duration is always less than 14 days, which exempts them from being reported.

It is our understanding that in each quarter your office prepares a report detailing risk undertaken by the banks under the comptroller’s supervision.

These risks include derivatives undertaken by U.S. banks and other obligations that may cause a bank to fail. Our concern is that your office may not be aware of large unreported derivative exposure by banks.

Could you review this matter and let us know your conclusions?

Sincerely,

CHRIS POWELL
Secretary/Treasurer

HARVEY ORGAN
Consultant

Gold Anti-Trust Action Committee Inc.
7 Villa Louisa Road
Manchester, Connecticut 06043-7541

END

as a follow up:

Bill, Ed, Harvey:

I’ve just sent this to my congressman’s office, asking for the comptroller of the currency to be prodded to answer GATA’s letter.
cp
———- Forwarded message ———-
From: Chris Powell <cxpowell@yahoo.com>
Date: Mon, Jun 11, 2018 at 12:21 AM
Subject: letter to comptroller of the currency
To: Mary Yatrousis <mary.yatrousis@mail.house.gov>Hi, Mary:Here’s a somewhat more substantial request for help from Representative Larson.Attached as a PDF is a letter my organization, the Gold Anti-Trust Action Committee Inc., sent to the U.S. comptroller of the currency more than a month ago. We have gotten no acknowledgment.I realize that the mail can be slow in Washington as it undergoes security checks, but I’d be grateful if the comptroller’s office could be encouraged to respond in the near future.Thanks again.

cp
—–
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
7 Villa Louisa Road
Manchester, Connecticut 06043-7541
USA

end

Bitcoin tumbles after the major crypto exchanges subpoenaed for manipulation
(courtesy zerohedge)

Bitcoin Tumbles After Major Crypto Exchanges Subpoenaed For Manipulation, Coinrail Hacked

Bitcoin and other cryptocurrencies flash-crashed Saturday night, one day after the US Commodity Future Trading Commission (CFTC) sent subpoenas four cryptocurrency exchanges in an ongoing probe into bitcoin manipulation that began in late July – following the launch of bitcoin futures on the CME, according to the Wall Street Journal.

CME’s bitcoin futures derive their final value from prices at four bitcoin exchangesBitstamp, Coinbase, itBit and KrakenManipulative trading in those markets could skew the price of bitcoin futures that the government directly regulates.

In delay reaction, Bitcoin fell as much as $433 or 5.6% in Saturday night trading, with some noting that the flash crash happened shortly after a 90th ranked crypto exchange, Coinrail, had suffered a “cyber intrusion“, and was likely the more relevant catalyst for the crypto price drop.

While major Cryptocurrencies were down from 4.5 – 5.5%, Bitcoin Cash dropped over 8.4%. 

Matt [LTC STRONG]@stuffluver12

Ahhhhhh…that feeling when is down further than the others on coinbase.

The CTFC subpoenas were issued after several of the exchanges refused to voluntarily share trading data with the CME after being asked last December. Of note, the CFTC regulates the CTC.

According to the WSJ, the CME, which launched bitcoin futures in December, asked the four exchanges to share reams of trading data after its first contract settled in January, people familiar with the matter said. But several of the exchanges declined to comply, arguing the request was intrusive. The exchanges ultimately provided some data, but only after CME limited its request to a few hours of activity, instead of a full day, and restricted to a few market participants, the people added.

What is curious, is that if there was indeed manipulation since the launch of bitcoin futures, it was to the downside, as the price of cryptos peaked around the time the crypto futures were launched, and are down well over 50% in the 6 months since.

Coinbase in particular has been under the watch government regulators. On February 23, Coinbase sent an official notice to around 13,000 customers to notify them they were legally required to turn over their information to the IRS.

image courtesy of CoinTelegraph

The IRS had initially asked Coinbase in July 2017 to hand over even more detailed information on every one of its then over 500,000 users in an attempt catch those cheating on their taxes. However, another court order in Nov. 2017 reduced this number to around 14,000 “high-transacting” users, which the platform now reports as 13,000, in what Coinbase calls a “partial, but still significant, victory for Coinbase and its customers.”

Coinbase told the around 13,000 affected customers that the company would be providing their taxpayer ID, name, birth date, address, and historical transaction records from 2013-2015 to the IRS within 21 days. Coinbase’s letter to these customers encourages them “to seek legal advice from an attorney promptly” if they have any questions. Their website also states that concerns may also be addressed on Coinbase’s Taxes FAQ. The ongoing legal battle between Coinbase and the US government dates back to November, 2016, when the IRS filed a “John Doe summons” in the United States District Court for the Northern District of California.

On Feb. 13, personal finance service Credit Karma released data showing thatonly 0.04 percent of their customers had reported cryptocurrencies on their federal tax returns. 

And in April, former New York Attorney General, Eric “we could rarely have sex without him beating me” Schneiderman, launched a probe of 13 major cryptocurrency exchanges according to the Wall Street Journal – claiming that investors dealing in the fast-growing markets often don’t have the basic facts needed to protect themselves.

Former AG Schneiderman’s office said the program, called Virtual Markets Integrity Initiative,  is part of its responsibility to protect consumers and ensure the integrity of financial markets, and its goal is to ensure that investors can have a better understanding of the risks and protections afforded them on these sites.

CFTC Commissioner: Crypto is a “modern miracle”

While the CFTC, IRS and New York Attorney General’s office are all cracking down on cryptocurrency exchanges, it seems to all be part of the government’s embrace of virtual currencies.  Last week CFTC Commissioner Rostin Benham called cryptocurrencies a “modern miracle” at the Blockchain For Impact Summit held at the UN in New York last week.

But virtual currencies may – will – become part of the economic practices of any country, anywhere.  Let me repeat that:  these currencies are not going away and they will proliferate to every economy and every part of the planet.  Some places, small economies, may become dependent on virtual assets for survival.  And, these currencies will be outside traditional monetary intermediaries, like government, banks, investors, ministries, or international organizations.

We are witnessing a technological revolution.  Perhaps we are witnessing a modern miracle. -Rostin Benham

Rostin hinted at the upcoming legal action against the exchanges during his speech:

Under the CEA and Commission regulations and related guidance, exchanges have the responsibility to ensure that their Bitcoin futures products and their cash-settlement process are not readily susceptible to manipulation and the entity has sufficient capital to protect itself.  The CFTC has the authority to ensure compliance. In addition, the CFTC has legal authority over virtual currency derivatives in support of anti-fraud and manipulation including enforcement authority in the underlying markets.

Meanwhile, the official Bitcoin website removed references to Coinbase, Blockchain.com and Bitpay, according to Crypto News – only one of which, Coinbase, was subpoenaed.

Olivier Janssens

@olivierjanss

http://Bitcoin.org just removed/censored the 2 largest US Bitcoin companies (@BitPay Payment processing and @coinbase Bitcoin Exchange). It’s a good move: Bitcoin Core is obviously no longer Bitcoin, and should ideally be removed from both @BitPay and @coinbase too.

The CFTC officially recognized bitcoin as a commodity in September of 2015 when it went after Coinflip for operating a platform for trading bitcoin options without the proper authorization. Since the agency effectively asserted its dominance over the bitcoin market with that decision, this is the first time it has given its blessing to an bitcoin options trading platform. Expect a burst of institutional trading activity to follow – especially since they approved institutional options trading in July

end

Swiss voters get it:  they reject a radical sovereign money lan in a huge landslide defeat.

(courtesy Bloomberg/GATA)

Swiss voters reject radical sovereign money plan in landslide

 Section: 

By Catherine Bosley
Bloomberg News
Sunday, June 10, 2018

Swiss voters dismissed a radical proposal to overturn one of the financial system’s core tenets.

The so-called sovereign money initiative, or “Vollgeld,” would have ended the system of fractional reserve banking that has been around for centuries by allowing only the Swiss National Bank to “create” money. But 75.7 percent of voters rejected the measure, according to the government. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-06-10/swiss-set-to-reject-s.

end

Craig Hemke:  Social Security deficit will be monetized by the government as they continue to spend taxpayers money.  Craig is correct that this will lead to the devaluation of the USA dollar and a wicked inflation.

(courtesy Craig Hemke/Sprott)

Craig Hemke at Sprott Money: Social Security deficit will be monetized

 Section: 

12:43p ET Monday, June 11, 2018

Dear Friend of GATA and Gold:

Since the U.S. government is not likely to have the political fortitude to cover the projected Social Security and Medicare revenue deficits with tax increases or benefit reductions, the TF Metals Report’s Craig Hemke writes today that the deficits will be monetized, leading to more devaluation of the U.S. dollar. Against devaluation, Hemke writes, the monetary metals already are offering outstanding protection in places like Brazil and Turkey.

Hemke’s analysis is headlined “The Volcano of Debt” and it’s posted at Sprott Money here:

https://www.sprottmoney.com/Blog/the-volcano-of-debt-craig-hemke-gold-an…

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



___________________________________________________________________

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 TO 6.4045  /shanghai bourse CLOSED DOWN 14.37 POINTS OR 0.47%     HANG SANG CLOSED UP 109.54  POINTS OR 0.48%
2. Nikkei closed UP 109.54 POINTS OR 0.48% /  /USA: YEN RISES TO 110.00/

3. Europe stocks OPENED GREEN  /     /USA dollar index FALLS TO 93.65/Euro RISES TO 1.1767

3b Japan 10 year bond yield: FALLS TO . +.05/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 110.00/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD FINALLY IN THE POSITIVE/BANK OF JAPAN LOSING CONTROL OF THEIR YIELD CURVE AS THEY PURCHASE ALL BONDS TO GET TO ZERO RATE!!

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 64.93  and Brent: 75.63

3f Gold DOWN/Yen DOWN

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO +.47%/Italian 10 yr bond yield DOWN to 2.91% /SPAIN 10 YR BOND YIELD UP TO 1.46%

3j Greek 10 year bond yield RISES TO : 4.73

3k Gold at $1298.70 silver at:16.73   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 47/100 in roubles/dollar) 62.56

3m oil into the 64 dollar handle for WTI and 75 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 110.00 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 0.9869 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1627 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now POSITIVE territory with the 10 year RISING to +0.47%

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 2.96% early this morning (THIS IS DEADLY TO ALL MARKETS). Thirty year rate at 3.10%

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

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

Futures Flat As Nervous Traders Hunker Down

For “The Week From Hell”

Bulletin Headline Summary From RanSquawk

  • European bourses higher ahead of Trump/Kim summit and as Italy reiterates plans to stay in the Eurozone
  • Sterling slides as industrial production has biggest monthly fall since October 2012 and trade deficit widens
  • Looking ahead, highlights include 3- and 10-year note auctions from the US

The “most important week of the year” started off with a session that has been a study in contrasts, with risk-off trades emerging early on in Asian trading, as Asian markets and US futures slipped pressured by the higher Yen in the aftermath of this weekend’s G-7 debacle which resulted in a communique that for the first time ever, was not signed by the US; concerns about a potential trade war, however, quickly morphed into optimism as investors shifted their attention to the historic summit between U.S. and North Korea as well as the meetings by three of the world’s three most important central banks, with the EUR spiking ahead of what may be the ECB’s announcement that it will end QE in early 2019, while Sterling returns to center stage with tomorrow’s critical Brexit vote.

The net result has been an offset of extremes, with US equity futures flat, but don’t expect this to last: as Deutsche Bank’s Jim reid writes, “today is actually the calm before the storm” and we’ll at least be able to monitor the fall out from the tense and quite remarkable G7 meeting over the weekend or G6 vs US meeting as it could be called.

Helping boost sentiment, Italy’s new finance minister, Tria, gave a strong endorsement of the euro in comments over the weekend, prompting UBS to suggest that Italy’s disagreements with the EU seem more likely to focus on immigration than on economics. Italian bonds and stocks surged while helping the Euro rise to session higher highs, after Tria told the Corriere della Sera newspaper over the weekend that there was “no discussion” of any proposal to leave the common currency and that the government would also block any market conditions that would “push toward an exit” (he would naturally say that having seen the recent rout in Italian bonds).

“This is the one of the first references on not letting the fiscal plan getting out of hand, and that the government will not let the BTP-bund spread get to the same wide level as back in 2011-2012,” Danske Bank’s Arne Lohmann Rasmussen told clients. “We expect to see some stabilization in the BTP-bund spread.” And sure enough, Italian 2Y yields tumbled following renewed hope that the status quo will return to Italy.

Of course, it’s only a matter of time before the Italian sentiment changes: after all for the ruling populist coalition to reach its goals, it will have no choice but to bust Italy’s budget, but until then hope has returned. Among his other points  in the Corriere interview, Tria said that the government will seek an EU accord that would allow the exclusion of infrastructure investment costs from the budget deficit; that a review of legislation on co-operative and small banks isn’t a priority; and that he can’t provide targets for growth and deficit before September.

As Bloomberg notes, not all are convinced that Tria’s comments warranted such a large push higher, given the challenges the new government’s fiscal program will pose to the country’s finances as debt stands at around 130% of GDP as Morgan Stanley noted recently.

Santander GCB rates strategist Luca Jellinek posited that much of the move may have been due to short positions being squeezed out. “There were a lot of shorts in Italy,” he said in emailed comments. This rally is “way too much.”

For now, however, Europe will certainly take it to avoid facing the reality of what global trade may look like in a post-Toronto G7 world, where Germany is most at risk. As a result of the Italian optimism, Europe’s Stoxx 600 Index jumped 0.5%, rising for the first time in five days as contracts for the S&P 500 edged upward and Treasuries fell with core European bonds.

Earlier in Asia, shares in Japan (Nikkei +0.5%), Hong Kong (+0.3%) and South Korea (Kospi +0.8%) all advanced modestly on hopes for a successful outcome from the Trump-Kim summit, while China stocks underperformed. Australia’s markets were shut for a holiday.

S&P 500 Index futures were unchanged on Monday morning, after hitting the highest level in three months with a seventh consecutive advance.

In global FX trading, the dollar remains stuck in a narrow range and will probably not make any notable moves until Wednesday’s FOMC meeting…

… while the euro advanced against the dollar, trimming Friday’s losses as haven demand eased. The yen dropped most among Group-of-10 peers followed by the Canadian dollar, which fell in the wake of the G-7 meeting, which ended with deepening tensions over U.S. tariffs and saw a dispute erupt between Trump and Prime Minister Justin Trudeau.  The pound dropped to a session low after data showed U.K. manufacturing output fell the most in 5 1/2 years in April and construction posted a smaller-than-expected gain, casting fresh doubt over the health of the economy. Norway’s krone slipped for the first time in three days after inflation slowed in May, denting expectations for a central bank hike in September. After a week of unexpected blow ups, there have been no new firework in emerging market FX so far.

US Treasuries ground marginally lower while the curve was unchanged; German 10-year bund yields climbed 2bps to 0.47 percent, while the yield on Britain’s 10-year gilt rose 2bps asis points to 1.388 percent, the highest in almost three weeks.

In commodities, oil prices slipped, currently down about 0.3%, pressured by rising US drilling activity, as well as increasing Russian output to 11.1mln BPD in June and Saudi Arabia reportedly increasing oil production by 100k in June ahead of incoming sanctions on Iran. In the metals scope, Gold is currently negative on the day (-0.15%) as markets await news from the Tump-Kim summit. Copper is negative for the second straight session as supply concerns start to ease. Steel futures are steady and trading essentially flat after gains in recent sessions as Chinese demand begins to ease off.

While today is quiet, what is coming is the week from hell, and the highlights are the Fed (Wed), ECB (Thurs) and BoJ (Fri) meetings, the summit between President Trump and North Korean Leader Kim Jong Un tomorrow, an important Brexit Parliamentary vote (Tues) that could shape Brexit and the UK government’s future leadership, US CPI and retail sales (Weds), Putin and Saudi crown prince Mohammed bin Salman meeting at the opening game of the World Cup (Fri) to possibly talk oil production and on the same day it’s the deadline for the US to publish the final list of Chinese products subject to $50 billion in tariffs.

Market Snapshot

  • S&P 500 futures up 0.1% at 2,784.75
  • STOXX Europe 600 up 0.4% to 386.53
  • MXAP up 0.09% to 175.02
  • MXAPJ up 0.3% to 573.39
  • Nikkei up 0.5% to 22,804.04
  • Topix up 0.3% to 1,786.84
  • Hang Seng Index up 0.3% to 31,063.70
  • Shanghai Composite down 0.5% to 3,052.78
  • Sensex up 0.7% to 35,676.23
  • Australia S&P/ASX 200 down 0.2% to 6,045.18
  • Kospi up 0.8% to 2,470.15
  • German 10Y yield rose 1.6 bps to 0.465%
  • Euro up 0.3% to $1.1802
  • Italian 10Y yield rose 6.8 bps to 2.858%
  • Spanish 10Y yield fell 4.0 bps to 1.43%
  • Brent futures down 0.3% at $76.21/bbl
  • Gold spot down 0.2% at $1,295.18
  • U.S. Dollar Index little changed at 93.57

Top Headline News from Bloomberg

  • U.S. President Donald Trump is willing to consider establishing official relations with North Korea and eventually open an embassy in Pyongyang, Axios reports, citing anonymous sources
  • Italian bonds surged after Finance Minister Giovanni Tria made assurances that the country would stay committed to the euro, while also making structural reforms
  • RAI: Italy’s center-right parties made gains in municipal elections in numerous cities, including 14 regional capitals; Five Star suffered setbacks across the country
  • German Chancellor Angela Merkel said she favors a U.S.-Russian summit, seeking to point global diplomacy forward after a tumultuous meeting of Group of Seven leaders
  • Switzerland dismissed a proposal to radically change the way banks lend money, a victory for the financial establishment including central bank chief Thomas Jordan
  • Paris has beaten London as the most attractive European city for investors for the first time in more than a decade, as Brexit fears begin to taint the U.K. capital, according to a report by Ernst & Young
  • Money managers once again cut bets on rising oil prices — the longest streak of declines since 2013
  • Italian finance minister confirms commitment to euro; new govt aims to boost economic growth and employment, not through deficit spending but with structural reforms and better conditions for investment: Corriere
  • U.K Apr. Industrial Production m/m: -0.8% vs +0.1%; Trade Balance -£14.0b vs -£11.4b est.
  • Norway May Underlying CPI y/y: 1.2% vs 1.4% est.
  • China May CPI 1.8% vs 1.8% estimate, PPI 4.1% vs 3.9% estimate

Asia equity markets began the week somewhat cautious ahead of the upcoming key risk events including the summit between US and North Korea tomorrow, as well as the FOMC and ECB policy meetings later this week. Furthermore, a market closure in Australia and the G7 fall out in which Trump refused to endorse the communique and criticized Canadian PM Trudeau as being dishonest and weak, also added to the tentative tone and saw US equity futures briefly pressured at the open. However, US equity futures have since recovered, while both Nikkei 225 (+0.6%) and KOSPI (+0.6%) were marginally positive as focus turned towards the upcoming historical Trump-Kim summit. Elsewhere, Hang Seng (+0.4%) and Shanghai Comp. (-0.3%) were mixed with underperformance in mainland China after inaction by the PBoC led to a liquidity drain and as participants digested mixed inflation data. Finally, 10yr JGBs are flat amid the tentative tone in the region and a lack of Rinban announcement by the BoJ.

Top Asian News

  • With Rates Below Fed’s, Asian Markets Head for Rare Ground
  • South Korea Stocks Lead Gains in Asia Ahead of Trump-Kim Summit
  • Pakistan Said to Devalue Rupee for Third Time Since December
  • ‘Mini 1MDBs’ Rife Across Malaysia, Mahathir’s Adviser Says
  • Pimco Flags Oil Risks as Funds Unimpressed by 8% India Yield

European bourses are largely positive (Euro stoxx 50 +0.7%) ahead of US President Trump’s meeting with Kim Jong Un in Singapore. FTSE is the outperforming bourse on heavy GBP losses following terrible data. FTSE MIB (+1.8%) is being buoyed by Italian bank stocks (FTSE Italia bank index +3.9%) that are benefitting from comments by the Italian Finance Minister Tria who stated that the new government is ‘clear and unanimous’ with its plan to keep the nation inside the EUR. The performance in Italian Banks has followed through to the Financial sector, which is the current outperformer. The energy sector is currently underperforming as a result of falling oil prices. Rolls Royce are down 1% amid reports of further job cuts and more checks for their Trent engines. Daimler are also down about a percent after the KBA found 5 “illegal switch off devices” in their car engines.

Top European News

  • U.K. Manufacturing, Construction Data Cast Doubt Over Economy
  • Italian Markets Rally After Finance Minister Commits to Euro
  • Italian Industrial Output Falls in Slowdown Sign for New Leaders
  • European Cyclical Sectors Underperform After G-7 Drama
  • Draghi May Help Worst-Performing European Stocks Find Way
  • Inmarsat Soars After Satellite Company Rejects EchoStar Bid

In FX, the Dollar index, DXY, is pretty mixed in the aftermath of the weekend G-7 gathering that ended in discord and President Trump disassociating the US from the official communique amidst accusations of dishonesty and deceit between himself and Canadian PM Trudeau. The DXY is on a modestly softer footing as a result, but rangebound and off m-t-d lows around 93.200 within 93.360-540 parameters ahead of CPI data and the FOMC. JPY/CAD: Marked underperformers, with the Jpy seeing stops vs the Usd tripped and another test of resistance around 110.00, but the pair pulling back before the 200 DMA (110.18) amidst reports of supply in Jpy crosses at big figure levels (ie 130.00 vs the Eur) via market contacts. Meanwhile, the Loonie re-tested 1.3000 lows vs its US counterpart in wake of the aforementioned G7 spat as Trudeau called US tariff proposals insulting and Trump retorted by refusing to back the joint statement and claimed his Canadian host had stabbed the US in the back. The pair has retreated since towards 1.2955, but is still 0.4% or so higher alongside Usd/Mxn around 20.3500 even though Mexico’s Economy Minister Guajardo still has high hopes of a NAFTA deal. GBP: Dire UK data in the form of IP, manufacturing/construction output and trade has dragged Cable back down below 1.3400 after the pair stopped just a few ticks shy of its 30 DMA at 1.3444, while Eur/Gbp has rebounded towards 0.8825. EUR: The top G10 performer and back around 1.1800 vs the Greenback ahead of respective Fed and ECB policy meetings this week, with another FOMC hike virtually priced in and expectations turning more hawkish for the latter after recent sourced reports and official comments.

In commodities, oil prices are slipping, with the fossil fuel currently down 0.3%, pressured by rising US drilling activity, increasing Russian output to 11.1mln BPD in June and Saudi Arabia reportedly increasing oil production by 100k in June ahead of incoming sanctions on Iran. In the metals scope, Gold is currently negative on the day (-0.15%) as markets await news from the Tump-Kim summit. Copper is negative for the second straight session as supply concerns start to ease. Steel futures are steady and trading essentially flat after gains in recent sessions as Chinese demand begins to ease off.

Looking at the day ahead, it is a fairly quiet start to the week with the only releases of significance coming from Europe with the May Bank of France industrial sentiment print, and April industrial and manufacturing production, and trade data in the UK, all of which disappointed. Brexit headlines may become a factor with UK’s David Davis set to meet with EU’s Michal Barnier to discuss the state of talks. It’s worth noting that German Finance Minister Olaf Scholz is also set to discuss EU reform in a panel interview.

US Event Calendar:

  • Nothing major scheduled

DB’s Jim Reid concludes the overnight wrap

Before we get to what is almost certainly the most busy week of the year so far for news-flow, as a little light relief this weekend we made the tough decision to restrict Peppa Pig from the TV at home. A few weeks ago I was laughing that the Chinese authorities had banned the show from certain areas due to Peppa’s apparent subversive behaviour. I’m slowly beginning to sympathise with the Chinese decision though. As Maisie has watched more and more Peppa we’ve noticed she’s started to become naughtier. She says “boring” all the time, “yuk” when vegetables come out but the last straw came yesterday when she said that “Daddy is fat”. Peppa does all those things and I had to say to Maisie that a) it’s rude to call people fat and b) I think I’m actually in pretty good shape at the moment thanks very much.

Well I hope all of your batteries are bursting with charge as it’s a week where the hits will come at you faster than insults out of Peppa Pig’s mouth. As well as being my birthday week and the start of the World Cup we have the following landmark events.

Today is actually the calm before the storm but we’ll at least be able to monitor the fall out from the tense and quite remarkable G7 meeting over the weekend or G6 vs US meeting as it could be called. The full week ahead is at the end today but the highlights are the Fed (Wed), ECB (Thurs) and BoJ (Fri) meetings, the summit between President Trump and North Korean Leader Kim Jong Un tomorrow, an important Brexit Parliamentary vote (Tues) that could shape Brexit and the UK government’s future leadership, US CPI and retail sales (Weds), Putin and Saudi crown prince Mohammed bin Salman meeting at the opening game of the World Cup (Fri) to possibly talk oil production and on the same day it’s the deadline for the US to publish the final list of Chinese products subject to $50 billion in tariffs.

The ECB will probably be the most interesting of the central bank meetings given the coordinated signals sent by their various speakers last week that the meeting is a live one for debating the end of QE. Our economists continue to expect QE to end in December 2018 following a Q4 taper but by a narrow margin think the announcement will be in July. It’s worth noting that this week’s meeting will also contain new economic projections from ECB officials so that’ll be worth watching.

Virtually everyone believes the Fed will raise rates 25bps this week and again we’ll see updated economic projections. Will the median dot move from 3 to 4 hikes for 2018? Our economists think the dots stay at 3 for now but they still expect 4 hikes this year while the market is assigning a 43% probability (per Bloomberg) – the highest all year. This will all come a day before the all important US CPI. Before this, by the time you read this tomorrow the first meeting between Trump and Kim Jong Un will have taken place (9am local, 2am BST, 9pm EST). It’s anyone’s guess what will come of that. The bid offer is Nobel Peace prize to nuclear bunker preparation. Interestingly Mr Trump said on  Saturday that he’ll know “within the first minute” if Kim is serious about giving up his weapons. So by 9.01am local time we may know if we have to buy tinned food and defendable bunkers. Later on the same day we’ll see whether peace has broken out in the ruling UK Conservative party where rebels could create havoc for the government’s Brexit bill and Mrs May’s leadership.

So a busy week and so far in Asia the main story is the G7 summit. The summit ended in a war of words as Trump refused to allow US officials to endorse a planned joint communique after Canadian leader Trudeau comments in a press conference at the close of the event basically suggesting US tariffs were insulting. Mr Trump tweeted that the Canadian PM was “very dishonest & weak” and White House advisor Larry Kudlow backed him up by saying on TV yesterday that Trudeau “really kind of stabbed us in the back”. Late last night German Press also reported Chancellor Merkel as saying that the EU wont be “taken for a ride” by the US.

The G7 has been going for around 45 years and never before have you had this kind of fractious relationship  between members.

Overnight, the biggest fallout in markets from that meeting is in FX where the Canadian Dollar (-0.29%) and Mexican Peso (-0.20%) are amongst the bigger movers this morning. In fairness however those moves are still relatively muted and equity markets in Asia certainly don’t appear to be showing any signs of concern. Indeed the Nikkei (+0.54%), Hang Seng (+0.30%) and Kospi (+0.54%) have all posted solid gains to start the week with only bourses in China (Shanghai Comp -0.26%) slightly lower. That’s unlikely to reflect the May inflation figures which were out on Saturday in China though with CPI coming in bang on the money at +1.8% yoy (unchanged from April) after falling food prices were offset by higher oil, and PPI rising a bit more than expected to +4.1% yoy (vs. +3.9% expected; +3.4% previously). Away from all this its worth noting that Italy’s Finance Minister Giovanni Tria was reported in Italian Press (Corriere della Sera) as saying that “there is no discussion of any proposal to leave the euro” and that “the government is determined to block in every way possible market conditions that would push toward an exit”. The single currency is about +0.20% versus the US Dollar post those comments coming out.

Back to Friday, which in the end was a largely mixed day for risk assets. It initially started off fairly sluggish and that continued through the entire European session as a combination of the volatility across EM currencies, some soft  macro data in Europe, a story initially reported in the Nikkei News suggesting that Apple had warned suppliers that parts for the iPhone in the second half of 2018 could be down 20% (although which was later somewhat downplayed), and a bit of nerves ahead of the G7 all appeared to play a factor in one way or another. However, it was also EM currencies that appeared to help lead risk assets to a bit of a bounceback late into the evening with the Brazilian Real (+5.09% for the biggest one-day gain since 2015) at the head of that after the central bank of Brazil announced that it intends to support the currency by flooding the market with FX swaps.

In the end, the S&P 500 closed +0.31% meaning it rose in 4 out of the 5 days last week for a weekly gain of +1.62% – the biggest in 4 weeks. The Dow (+0.30%) closed up a similar amount while the Nasdaq (+0.14%) lagged slightly but still closed within a whisker of its all-time high again. In Europe markets struggled from the get go but did at least pare heavier losses at the open. The Stoxx 600 finished -0.21% which means it ended -0.46% for the week – the third consecutive weekly fall. The DAX also lost -0.35% while the periphery was hit harder with the IBEX and FTSE MIB finishing -0.84% and -1.89% respectively. The latter was also down -3.41% for the week which is the fifth consecutive weekly decline – the longest run since January/February last year.

At the other side of the risk spectrum sovereign bonds were fairly well bid. Going into ECB week, Bunds rallied 3.4bps on Friday although were as much as 8.3bps lower intraday at one stage, falling back below 0.400%. They closed at 0.443% which means they are still up 26bps or so from the intraday Italy-impacted lows in May. OATs were 1.0bp lower on Friday and Gilts 1.1bps. BTPs struggled again though with the 10y rising another 7.8bps. Yields were up 45.5bps last week which is actually the biggest one-week move since November 2011 when BTP yields rose over 60bps in a week.

Speaking of big moves, EM currencies had their fair share of them last week for various reasons. By the close of Friday though there was a fairly even spread of big winners and losers. Indeed over the 5 days the Turkish Lira (+3.92%), Polish Zloty (+1.55%) and Brazilian Real (+1.54%) were the 3 biggest gainers while the South African Rand (-2.90%), Mexican Peso (-1.73%) and Argentine Peso (-1.43%) were the 3 biggest losers. There are a lot of country-specific stories in EM at the moment (Brazil being the latest such example) at a time when the Fed is in full  blown tightening mode and while that hasn’t quite spilled over into an all-out EM crisis is does feel like the seeds have gently been sown with EM central banks now playing a more pivotal role than they have in recent memory to stop all out crisis from happening. It’s certainly one to carefully watch in the background.

Before we wrap up, let’s review the data that was released on Friday. The print which certainly attracted the most attention was the German industrial production report for April which came it at a much softer than expected -1.0% mom (vs. +0.3% expected). This came following softer factory orders data the day prior which suggests a softer read through for Q2 growth so far. The same data was also softer in France (-0.5% mom vs. +0.3% expected) while in the US wholesale inventories rose a little more than expected (+0.1% mom vs. 0.0% expected). What to look out for this week?

It is a fairly quiet start to the week with the only releases of significance coming from Europe with the May Bank of France industrial sentiment print, and April industrial and manufacturing production, and trade data in the UK. Brexit headlines may become a factor with UK’s David Davis set to meet with EU’s Michal Barnier to discuss the state of talks. It’s worth noting that German Finance Minister Olaf Scholz is also set to discuss EU reform in a panel interview.

3. ASIAN AFFAIRS

i)MONDAY MORNING/SUNDAY NIGHT: Shanghai closed DOWN 14.37 points or 0.47%   /Hang Sang CLOSED UP 105.49 points or 0.34%    / The Nikkei closed UP 109.54 POINTS OR 0.48% /Australia’s all ordinaires CLOSED DOWN .21%  /Chinese yuan (ONSHORE) closed UP at 6.4045/Oil DOWN to 64.93 dollars per barrel for WTI and 75.63 for Brent. Stocks in Europe OPENED ALL GREEN//.  ONSHORE YUAN CLOSED UP AT 6.4045 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.3973/ONSHORE YUAN TRADING WEAKER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING MUCH STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING MUCH STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW LOOKS LIKE A FULL TRADE WAR IS BEGINNING/

3 a NORTH KOREA/USA

North Korea/South Korea/usa

Pompeo reports that North Korea is making progress in their talks at denuclearization

(courtesy zerohedge)

Pompeo: Making “Rapid” Progress In Talks With North Korea

Ahead Of Historic Summit

During a press briefing Monday in Singapore, Secretary of State Mike Pompeo assured reporters who were present that talks between the North Korean and US delegations in Singapore have progressed “rapidly” ahead of the historic summit between President Trump and Kim Jong Un, with Pompeo adding that the talks were still taking place.

“Our ambassador to the Philippines Sung Kim met today with [North Korean] Vice Foreign Minister Choe Son Hui,” Pompeo told reporters at a press conference. “They are moving quite rapidly and we anticipate they will come to their logical conclusion even more quickly than we anticipated,” he said.

Pompeo

Meanwhile, the Washington Examiner reported that members of the US and North Korean delegations met for a few hours at the Ritz Carlton hotel to discuss the terms of denuclearization.

“North Korea has previously confirmed to us its willingness to denuclearize, and we are eager to see if its words prove sincere,” Pompeo said. He added that he is hopeful the summit “will have set the conditions for future productive talks” between Washington and Pyongyang.

The summit has provided “an unprecedented opportunity to change the trajectory of our relationship and bring peace and prosperity” to North Korea, Pompeo said. However, he played down the possibility of a quick breakthrough and added that the summit should set the framework for “the hard work that will follow.”

While reporters lobbed questions at Pompeo, he declined to provide any details about what Trump might offer Kim during their meeting – though he said the “US is prepared to take actions that will provide North Korea with sufficient certainty that they can be comfortable that denuclearization doesn’t end badly for them.”

He also emphasized that the negotiations would NOT be conducted in the open “with the media.”

“We are not going to conduct these negotiations in the open with the media,” Pompeo said, before adding that “unique steps can be taken” to satisfy the Kim regime without providing sanctions relief.

“The ultimate objective we seek from diplomacy with North Korea has not changed,”Pompeo said, adding that “complete, verifiable, and irreversible denuclearization of the Korea peninsula is the only outcome that the United States will accept.”

In parting, he made it very clear that US sanctions will remain in place as long as the North hasn’t denuclearized completely, and that if talks don’t move in the right direction, the sanctions “will increase.”

Watch Pompeo’s full briefing below:

end

3 b JAPAN AFFAIRS

end

c) REPORT ON CHINA/HONG KONG

Points to consider:

  1. China’s GDP is 11 trillion
  2. China’s total debt 2018: 31 trillion uSA dollars
  3. China’s  Central bank balance sheet is 50 trillion USA dollars equiv.
  4.  China’s debt is growing faster than marginal utility and this is unsustainable

(courtesy Peter Stoferle/Mises Institute)

China Is In Trouble

Authored by Ronald-Peter Stöferle and Mark J. Valek via The Mises Institute,

Before we discuss the economic situation of China, a few words about China’s strongman, Xi Jinping. The “new Chinese emperor” has engineered a meteoric rise. He started off as simple rural laborer but is now the most powerful Chinese president since Deng Xiaoping. Such a career path requires strength, tact, and probably a dash of unscrupulousness.

While the rulers of China have been able all along to hedge their plans over longer periods than their Western counterparts have, the new legal situation has extended this planning horizon even further. In comparison with those of Western economies, China’s countermeasures against the crisis in 2008 were significantly more drastic. While in the US the balance sheet total of the banking system increased by USD 4,000bn in the years after the global financial crisis, the balance sheet of the Chinese banking system expanded by USD 20,000bn in the same period. For reference: This is four times the Japanese GDP.

The following chart shows the expansion of the bank balance sheet total as compared to economic output. Did the Chinese authorities assume excessive risks in fighting the crisis?

Neither the fact that China’s bank balance sheets amount to more than 600% of GDP nor the fact that they have doubled in terms of percentage of GDP in the past several years suggests a healthy development. Our friends from Condor Capital expect NPL ratios 51F to rise in China, which could translate into credit losses of USD 2,700 to 3,500bn for China’s banks, and this is under the assumption of no contagion (!). By comparison, the losses of the global banking system since the financial crisis have been almost moderate at USD 1,500bn

The most recent crisis does teach us, however, that the Chinese are prepared to take drastic measures if necessary. China fought the financial crisis by flooding the credit markets: 35% credit growth in one year on the basis of a classic Keynesian spending program is no small matter.

Chinese money not only inflates a property bubble domestically but also around the globe (e.g. in Sydney and Vancouver). Further support for the global property markets is in question, given the measures China has recently launched. Due to financial problems, Chinese groups such as Anbang and HNA will have to swap the role of buyer for that of seller.

The IMF has forecast a further doubling of total Chinese debt outstanding from USD 27,000bn in 2016 to USD 54,000bn in 2022. By comparison, in 2016 China’s GDP amounted to USD 11,200bn. This spells debt-induced growth at declining rates of marginal utilityFrom our point of view, this development – which we can also see in the West – iunsustainable.

In its most recent report, “Credit Booms – Is China different?”, the IMF states that in 43 cases worldwide of strong credit growth (i.e. the ratio of credit to GDP grows more than 30% over five years), only five cases ended up without a significant slowdown or a financial crisis. The IMF also points out that no expansion of credit that started at a debt to GDP ratio above 100% of GDP ended well. It is worth noting that China has a high percentage of domestic as opposed to foreign debt, which definitely makes matters easier for the country. But the question is: Will it be different for China this time?

The 19th-century Opium Wars that China fought with England, which are deeply rooted within the collective memory of the Chinese people, are historical events that are of great importance in connection with the punitive tariffs imposed by the US, as they remain a fixed and integral part of the Chinese history curriculum in schools.2 If necessary, China could stir up anti-Western sentiment in order to implement measures that are hard on its own population, even if they are unpopular. The buck would of course stop with the Americans. Thus, the US could shoot itself in the foot with any escalation of the trade war, as we regard the ability to bear hardships and the cohesion of Chinese society as much stronger than those of the American society.

The demographic development of China is also worth a quick sidebar. The World Bank forecasts a population peak of 1.4bn for China in 2028. The decline in population that is predicted to set in around that time should proceed at a similar pace as the increase towards the peak.

The fit-for-work population (aged 16 to 59) has been decreasing since 2012 and is expected to decline by almost 25% to 700mn by 2050. Thus China, much like the West, has the problem of an aging population.

Conclusion

Unlike his Western competitors, China’s new strongman, Xi, can implement his long-term strategy in a targeted and gradual fashion. Xi explicitly underlined his goal of asserting China’s interests in the world by referring to military, economic, political, and diplomatic means in his speech at the National Congress in October 2017.3 He left no doubt that China was not willing to compromise in any shape or form with regard to its territorial integrity (N.B. Taiwan, Hong Kong, Tibet), and he issued point-blank threats against separatist tendencies.

However, the transformation of the economy could (intentionally or otherwise) cause economic distortions not only in China but globally. Recent years have been dominated by a massive expansion of credit. In fact, it is often said that China has blown the biggest credit bubble in history.

It seems there are greater similarities between China and the US than may be visible at first glance. China builds real estate for a shrinking population, invests for an over-indebted client (the US, which even insists on a drastic reduction of the bilateral trade deficit) and finances all this with money it does not have.

4. EUROPEAN AFFAIRS

ITALY

Something is scaring Italian depositors as they are removing funds from Italian banks and placing them in foreign accounts..probably a German or Dutch account.

(courtesy zero hedge)

Italy Hit By Biggest Depositor Run Since 2012

In the aftermath of the recent political and market turmoil in Italy, last weekend we were surprised to report that none other than JPMorgan came to the unexpected conclusion that what Italy’s Euroskeptics are hinting at, if not explicitly pushing for, namely Exitaly, may be the best option for the country, however one which would not take place without major market turbulence.

At the heart of JPM’s argument is that with Italy effectively owing the Eurosystem €426BN via Target2 imbalances, it has the leverage to if not start with a clean slate, then certainly threaten to do so…

… leverage which is further compounded by Italy’s surprisingly favorable current account balance and Net International Investment Position (more details here).

So fast forward just a few days, when later last week the Bank of Italy released data on its aggregated balance sheet for May 2018 including its net Target 2 balance, showing a dramatic increase in its negative net balance. Indeed, the net balance deteriorated by nearly €40bn, its largest monthly deterioration since March 2012, to a new record of -€465bn.

As JPM further details, on the Bank of Italy’s balance sheet, the increase in the Target 2 liability was largely matched by a decrease in deposits from MFIs even as the aggregate size of the balance sheet was little changed, which as JPM’s Nick Panigirtzoglou writes, suggests the worst possible scenario: that some deposits were moved abroad.

This is in sharp contrast with the period of rapid deterioration of the Target 2 balance during the escalation of the Euro area crisis from mid-2011 to mid-2012. At the time, the counterpart to increasing Target 2 liabilities came from an expansion in the Bank of Italy’s assets, primarily from an increase in liquidity provision to the banking system.  Indeed, the levels of excess liquidity in the Eurosystem given QE and the large balance of outstanding TLTROs reduce the need for such liquidity provision.

But, as JPM adds, this tentative sign of deposit outflows highlights another risk posed by a hardening of rhetoric regarding the euro, given that aggregate deposits at Italian banks (excluding deposits by other MFIs and general government) amounted to nearly €1.7tr as of March 2018.

In short: with the risk of both Italeave and redenomination rising, the Italian savers are starting to pull a “Greece”something we observed on Friday in the dramatic spike in Italian bill yields above those of Greece.

Which brings us to the next “big question”: how long will the Italian authorities allow these outflows to accelerate before they too respond with whispers (at first) of capital controls.

8. EMERGING MARKET

ARGENTINA

The Argentinian peso falls to 26 to the dollar coupled with a fall in the Brazilian Real to 3.71 to the dollar as contagion is spreading past with respect to our emerging markets.  The dollar scarcity is certainly having its deleterious effect

(courtesy zerohedge)

Argentina’s Peso Is Collapsing Again

Just a few short days after agreeing a record bailout by The IMF, Argentina’s currency is back in freefall,collapsing to more than 26 pesos per dollar as Argentine truckers plan a national strike on Thursday that investors fear will push the government to fold on reforms… and growing anxiety over BRCA’s decision.

Companies rejected demand for 27% wage increases from truck drivers, Hugo Moyano, leader of the nation’s truckers union, says in press conference, confirming plans for a nationwide strike on Thursday.

Additionally, it appears BCRA’s decision to withdraw its USD5b daily offer shook the FX market. The central bank was absent from the market on Friday and the peso had its biggest drop in two weeks. BCRA decides monetary policy tomorrow, in first meeting after government and International Monetary Fund agreement.

This is the biggest drop in the peso in over a month…

Not good… Record lows for the peso, and falling…

It looks like we’re gonna need more than $50 billion!!

Brazil’s Real is rolling over too as the peso plummets…

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

Euro/USA 1.1781 UP .0014/ 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:///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES GREEN /

USA/JAPAN YEN 110.00   UP 0.480  (Abe’s new negative interest rate (NIRP), a total DISASTER/SIGNALS U TURN WITH INCREASED NEGATIVITY IN NIRP/JAPAN OUT OF WEAPONS TO FIGHT ECONOMIC DISASTER/

GBP/USA 1.3352 DOWN  0.0036  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.2998  UP .0073 (CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS MONDAY morning in Europe, the Euro ROSE by 14 basis points, trading now ABOVE the important 1.08 level RISING to 1.1781; / Last night Shanghai composite CLOSED DOWN 14.37 POINTS OR 0.47%  /Hang Sang CLOSED UP 105.49 POINTS OR 0.48% /AUSTRALIA CLOSED DOWN .21% / EUROPEAN BOURSES  ALL GREEN /

The NIKKEI: this MONDAY morning CLOSED UP 109.54 OR 0.48%

Trading from Europe and Asia

1/EUROPE OPENED ALL GREEN 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 105.49 POINTS OR 0.34%  / SHANGHAI CLOSED DOWN 14,37 POINTS OR 0.47%  /

Australia BOURSE CLOSED DOWN .21%

Nikkei (Japan) CLOSED UP 109.54 POINTS OR 0.48%

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1295.30

silver:$16.77

Early FRIDAY morning USA 10 year bond yield: 2.96% !!! UP 2 IN POINTS from THURSDAY night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/

The 30 yr bond yield 3.10 UP 1  IN BASIS POINTS from THURSDAY night. (POLICY FED ERROR)/

USA dollar index early  MONDAY morning: 93.64 UP 10  CENT(S) from FRIDAY’s close.

This ends early morning numbers MONDAY MORNING

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And now your closing MONDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 2.0% DOWN 5  in basis point(s) yield from FRIDAY/

JAPANESE BOND YIELD: +.05%  UP 3/10   in basis points yield from FRIDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 1.44% DOWN 3  IN basis point yield from FRIDAY/

ITALIAN 10 YR BOND YIELD: 2.84  DOWN 29  POINTS in basis point yield from FRIDAY/

the Italian 10 yr bond yield is trading 140 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: FALLS TO +.490%   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 1.1784 UP .0018(Euro UP 18 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 110,09 DOWN 0.569 Yen UP 56 basis points/

Great Britain/USA 1.3368 DOWN .0020( POUND DOWN 20 BASIS POINTS)

USA/Canada 1.2983 UP  .0053 Canadian dollar DOWN 53 Basis points AS OIL ROSE TO $66.13

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This afternoon, the Euro was UP 18 to trade at 1.1784

The Yen ROSE to 110.09 for a LOSS of 56 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 LOST 20 basis points, trading at 1.3368/

The Canadian dollar LOST 59 basis points to 1.2983/ WITH WTI OIL RISING TO : $66.13

The USA/Yuan closed AT 6.4018
the 10 yr Japanese bond yield closed at +.050%  UP 3/10  IN BASIS POINTS / yield/
Your closing 10 yr USA bond yield UP 5   IN basis points from FRIDAY at 2.97 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.11  UP 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, 93.59  UP 5 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 PM

London: CLOSED UP 56.36 POINTS OR 0.73%
German Dax :CLOSED UP 76.36 OR 0.60%
Paris Cac CLOSED UP 23.69 POINTS OR 0.33%
Spain IBEX CLOSED UP 152 POINTS OR 1.56%

Italian MIB: CLOSED UP 730.22 POINTS OR 3.44%

The Dow closed UP 5.78 POINTS OR 0.02%

NASDAQ closed UP  14.42 OR .19 % 4.00 PM EST

WTI Oil price; 66.13  1:00 pm;

Brent Oil: 76.69 1:00 EST

USA /RUSSIAN ROUBLE CROSS: 62.83 UP 51/100 ROUBLES/DOLLAR (ROUBLE LOWER BY 51 BASIS PTS)

TODAY THE GERMAN YIELD RISES TO +.490% FOR THE 10 YR BOND 1.00 PM EST EST

END

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

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

WTI CRUDE OIL PRICE 4:30 PM:$66.09

BRENT: $76.33

USA 10 YR BOND YIELD: 2.95% the dropping yields signify markets are in turmoil

USA 30 YR BOND YIELD: 3.09%/

EURO/USA DOLLAR CROSS: 1.1783 UP .0017  (UP 17 BASIS POINTS)

USA/JAPANESE YEN:110.03 UP 0.502 (YEN UP 30 BASIS POINTS/ .

USA DOLLAR INDEX: 93.58 UP 4 cent(s)/dangerous as the HIGHER dollar IS DESTROYING THE EMERGING MARKETS.

The British pound at 5 pm: Great Britain Pound/USA: 1.3381 DOWN 0.0007  (FROM YESTERDAY NIGHT DOWN 7  POINTS)

Canadian dollar: 1.2982 UP 56 BASIS pts

German 10 yr bond yield at 5 pm: +490%


VOLATILITY INDEX:  12.35  CLOSED  UP 0.04

LIBOR 3 MONTH DURATION: 2.326%  .

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

TRADING IN GRAPH FORM FOR THE DAY

Stocks Gain, Bonds Feel No Pain As Cryptos

Crash & Dollar Triggers ‘Golden Cross’

Stocks are higher… so the economy must be doing great and Trump must be awesome and trade wars don’t matter, right?

Trannies outperformed and Small Caps managed to extend gains as US equity markets shrug off the weekend’s rhetoric and any potential for errors this week…all spoiled with an ugly close…

Someone shit the bed at the close…

Tech managed to scramble back and ended flat relative to financials today…

VIX was practically unchanged despite the stock market gains…

In credit-land, even Goldman Sachs has started to notice the dramatic divergence between IG credit and stocks…

Treasuries inched higher in yield with 2y notably underperforming…

10Y Yields traded in a crazy narrow range of less then 2bps…

The yield curve flattened notably on the day ahead of the start of FOMC tomorrow…

And while all eyes were on America’s northern neighbor after this weekend’s G-7 debacle, it is the southern neighbor that is struggling as Mexico’s credit risks surges to the highest since Trump’s election and furthermore, above the credit risk of Russia for the first time since March 2008…

The Dollar Index managed a small gain but remains in the extremely narrow closing range for the 18th day in a row…(1168, 1170, 1169, 1168, 1169, 1168, 1171, 1173, 1177, 1170, 1171, 1172, 1171, 1172, 1170, 1170, 1170, 1172…)

The Dollar Index also completed its Golden Cross today (50DMA crosses above the 200DMA)…

Emerging Market FX tumbled…

After a couple days of resurgence, Brazils’ Real rolled over today as Argentina’s peso puked to new record lows…

Finally in currency land – cryptos were clubbed like a baby seal after news of a hack of the 98th biggest exchange in the world…

Silver managed solid gains despite dollar strength and copper’s recent ramp ended abruptly…

Big intraday swing in crude today…back above $66 again

Gold rebounded off $1300 once again…

The gold-to-silver ratio tumbled back to unchanged for the year…

Finally, in the “this won’t end well” file; Canaccord Genuity’s Tony Dwyer notes that the Federal Reserve’s monetary policy uncertainty index has only been this low in four other instances, each which was followed by a sudden swing in equity prices…

end

This will have a terrible effect on USA business growth: Striking UPS workers walkout and it is over 90% of the company’s union members

Striking UPS Workers Will Disrupt Business

Nationwide With Largest US Walkout In Decades

UPS is facing its largest labor strike in decades – as over 90% of the shipping company’s union members have voted to stop working if a deal can’t be reached on the Teamsters’ current labor contract which expires on August 1, according to CBS News.

The tally released by the International Brotherhood of Teamsters Tuesday night had 93 percent of UPS members endorsing the authorization and 91 percent of UPS freight employees backing the measure. A national pact with the union covers about 260,000 UPS workers, and the current contract expires July 31. –CBS

At issue is how employees will be compensated under a rumored plan to deliver packages seven days a week. UPS began delivering on Saturdays last year to keep up with demand. The company is now proposing a two-tier wage structure that would shift part-time workers making $15/hour to full-time at the same wage. Drivers currently make an average of $36 an hour, or around $75,000 per year.

With UPS’s roughly 19 million shipments per day accounting for roughly 6% of the nation’s GDP, a labor dispute could disrupt the US economy. The company transports around 36% of deliveries between the top three logistics providers, while the U.S. Postal Service stands at 35% and FedEx comes in third at 17%.

The vote “gives the negotiating committees bargaining leverage this week and during subsequent negotiations for the national contract and the supplements,” said Teamsters director and co-chairman of the bargaining committee, Denis Taylor.

That said, the Teamsters are deeply divided on the proposal, making a deal more difficult to reach and a strike more likely.

An opposition group within the union, UPS Teamsters United, argues that the delivery company, which posted a $5 billion profit in 2017, should pay new full time workers the same as existing workers. -CNN

Most people understand in the world of Amazon (AMZN) and e-commerce, UPS isn’t going to be Monday to Friday or even Monday to Saturday any more, it’s going to be a seven-day operation,” said David Levin, spokesman for UPS Teamsters United. “But they made record profits. They don’t need concessions to do that.”

While there is still plenty of time for the Teamsters and UPS to reach an agreement before August 1, the faction opposed to the deal may convince rank-and-file members to reject the proposal and move forward with the strike.

“UPS is confident in our ability to reach an agreement,” a company spokesperson told CBS Newsin an email. “Strike authorization votes do not mean a strike is imminent. The reality is that UPS and the Teamsters have already reached tentative agreements, subject to ratification, on a wide variety of non-economic issues.

end

The G7 meeting did not go over well with Trump insisting on fair trade and the elimination of foreign subsidies and huge tariffs vs the small tariffs the USA places on good arriving from abroad

He states that the uSA will no longer be the “piggy bank that everybody is robbing”

(courtesy zerohedge)

Trump At G-7 Closing Remarks: “We’re The Piggy Bank That Everybody’s Robbing”

President Trump’s 24 hours in Quebec while attending the annual G-7 Summit was every bit as confrontationalas we imagined they would be. The president has enraged his fellow world leaders, insulted Justin Trudeau, who’s hosting the summit in Quebec and whom Trump repeated referenced as just “Justin”, and skipped a meeting with French President Emmanuel Macron.

German Chancellor Angela Merkel has attacked him and vowed to challenge his “America First” trade agenda while also confronting him about his climate stance – something that might be difficult to do, since Trump left this morning after he said he would skip  discussions about climate change Saturday night.

Trump

Trump also showed up late to a gender-focused breakfast meeting, billed by the event’s Canadian organizers as a chance for leaders to “draft concrete actions for the G-7 to advance gender equality,” according to CBC. Isabelle Hudon, Canada’s ambassador to France, was making opening remarks when Trump and a flood of press pool members arrived and interrupted her.

As Trump quietly took his place between Christine Lagarde, head of the International Monetary Fund,and Lt.-Gen. Christine Whitecross, the Canadian head of the NATO college in Rome, Trudeau restated his welcome and Hudon repeated her remarks.

Then there were his controversial remarks. Early on, Trump suggested that the G-7 should consider readmitting Russia, which was kicked out in 2014 for its activities in Crimea. Trump instead blamed those on Obama. Also on Friday, Trump floated the idea of ending all tariffs and trade barriers between the US and its allies – a pitch that wasn’t exactly expected, according to Politico. Trump offered the proposal at the end of a “contentious” meeting on trade disputes. Most G-7 members remain furious with Trump over his decision to impose tariffs on aluminum and steel imports, and his threats to impose more trade restrictions. Merkel responded positively to Trump’s suggestion, saying she would consider it.

“We should at least consider no tariffs, no barriers — scrapping all of it,” Trump said, according to officials who were listening and taking notes.

Before leaving for his meeting with Kim Jong Un, Trump provided an update during a live press conference with Larry Kudlow and John Bolton. First he thanked Trudeau and praised Canada as a “beautiful country” before launching into a summary of issues starting with trade. Though he walked away without signing the US on to the traditional post-summit agreement (providing more fodder for critics who sneered about the G-6 + 1), Trump insisted that the G-7 was “tremendously successful” and despite trade tensions “relationships are outstanding.” He adds that the tariff situation is “going to change, 100 percent” as the US is “like the piggy bank that everyone robs”.

During his talk, Trump alternated between stream-of-conscious rambling about trade, Russia and North Korea and taking questions from reporters.

On trade:

“We had productive discussion on having fair and reciprocal” trade and market access.

“We’re linked in the great effort to create a more just and prosperous world. And from the standpoint of trade and creating more prosperous countries, I think they are starting to be committed to more fair trade. We as a nation lost $870 billion on trade…I blame our leaders and I congratulate leaders of other countries for taking advantage of our leaders.”

“If they retaliate they’re making a tremendous mistake because you see we have a tremendous trade imbalance…the numbers are so much against them, we win that war 1000 times out of a 1000.”

“We’re negotiating very hard, tariffs and barriers…the European Union is brutal to the United States….the gig is up…there’s nothing they can say.”

“We’re like the piggy bank that everybody’s robbing.”

“I would say the level of relationship is a ten – Angela, Emmanuel and Justin – we have a very good relationship. I won’t blame these people, unless they don’t smarten up and make the trades fair.”

On eliminating trade barriers:

“That’s the way it should be. No tariffs, no barriers – no subsidies.”

“You go tariff free you go barrier-free you go subsidy-free – that’s the way we learned it at the Wharton School of Finance. We can’t have an example where the US is paying fees of 270%.”

Then “Worst, Fake News” CNN asked President Trump how disastrous his trade policies are and how his actions are hurting relationships… to which he replied very informatively, ending “so you can tell that to your fake friends at CNN…”

Jack Posobiec🇺🇸

@JackPosobiec

President Trump lays it all out on trade to CNN reporter 🔥

On North Korea:

“I feel that Kim Jong Un wants to do something great for his people…he’s got an opportunity that, if you look back into history, few people have ever had.”

“This is a great opportunity for peace and lasting peace and prosperity.”

“It’s going to be something that’s always spur of the moment…this is an unknown personality many people don’t know.”

“You know how they say you know whether you’ll like somebody in the first five seconds? I think I’ll know pretty quickly whether we’re going to make a deal.”

On Russia:

“Some people like the idea of bringing Russia back in.” 

Asked if Crimea should be considered Russia now:

you’d have to ask President Obama because he’s the one who let Crimea get away.He allowed Russia to take Crimea. I may have had a much different attitude.”

Trump is now making the 20-hour flight to Singapore, where he will attend a historic summit with North Korea leader Kim Jong Un. We’ll now keep our eye out for the finalized communique from the group. The US is typically a leader in the crafting of the statement. But this time, it’s unclear if the US had any input at all into the statement, as only the leaders from Britain, Canada, France, Germany, Italy and Japan as well as the presidents of the European Commission and European Council remain at the meeting. But regardless of who writes it, the statement will probably be of little consequence, as UBS points out:

Several heads of state will be heading off on a taxpayer-financed “mini-break” in Canada today. In all of its incarnations (over the past four years, we’ve gone from G-8 to G-6+1) the group hasn’t really accomplished much since an initial burst of enthusiasm with the Plaza Accords and Louvre Accords in the 1980s.

And this meeting likely won’t be any different.

end
Trump states that Canadian Prime Minister Trudeau lied to him and others at the G7 meeting and thus he refuses to endorse the final statement.  Canada will respond to the tariffs imposed on  imports of steel and aluminum into the USA.  Trump claims and he is probably correct that Canada protects its dairy industry and imposes a huge tariff of 270% on dairy products arriving from the uSA in order for Canada to compete.
(courtesy zerohedge)

Trump Rage-Tweets That Trudeau Lied At G-7, Refuses To Endorse Final Statement

Update: French Prime Minister Trudeau has responded to President Trump’s tweets.  Trudeau spokeswoman Chantal Gagnon issues statement by email:

“We are focused on everything we accomplished here at the G-7 summit”

“The Prime Minister said nothing he hasn’t said before – both in public, and in private conversations with the President”

*  *  *

Having been literally ‘squeezed’ by French President Macron while in Quebec for the G-7 Meetings, President Trump has lashed out at another French-speaking leader in a late-Saturday series of rage-tweets.

As The Hill reports, a handshake between President Trump and French President Emmanuel Macron on Friday has gained widespread attention on social media…

Press Plus – Press TV@realPressPlus

Trump-Macron handshake showdown at G7 summit

for the imprint of Macron’s thumb the French leader left on Trump’s hand.

But after hours of to-ing and fro-ing among various representative of the G-7 nations, a final communique is yet to appear – and now, judging by Trump’s tweet tirade – it will indeed be a G6+1…

US President Donald Trump says he will not endorse the final G7 communique and will look to impose tariffs on cars, potentially signalling a worsening of relations in a brewing trade war.

Canadian Prime Minister Justin Trudeau earlier said his country would move ahead with retaliatory measures against the recently imposed US tariffs on allies’ steel and aluminum exports. He said the new tariffs on Canada were “insulting” and said he told Trump directly that Canadians “particularly did not take lightly the fact that it’s based on a national security reason” and held firm to the government’s threat of retaliation.

“Canadians are polite, we’re reasonable, but we also will not be pushed around.”

Trump seemed particularly angered by Trudeau’s apparent two-faced comments, tweeting:

PM Justin Trudeau of Canada acted so meek and mild during our @G7 meetings only to give a news conference after I left saying that, ‘US Tariffs were kind of insulting’ and he ‘will not be pushed around’ Very dishonest & weak. Our Tariffs are in response to his of 270 per cent on dairy!” Trump posted in another tweet.

Donald J. Trump

@realDonaldTrump

PM Justin Trudeau of Canada acted so meek and mild during our @G7 meetings only to give a news conference after I left saying that, “US Tariffs were kind of insulting” and he “will not be pushed around.” Very dishonest & weak. Our Tariffs are in response to his of 270% on dairy!

Based on Justin’s false statements at his news conference, and the fact that Canada is charging massive Tariffs to our U.S. farmers, workers and companies, I have instructed our U.S. Reps not to endorse the Communique as we look at Tariffs on automobiles flooding the U.S. Market!” Trump wrote on Twitter.

Donald J. Trump

@realDonaldTrump

Based on Justin’s false statements at his news conference, and the fact that Canada is charging massive Tariffs to our U.S. farmers, workers and companies, I have instructed our U.S. Reps not to endorse the Communique as we look at Tariffs on automobiles flooding the U.S. Market!

The trade wars just escalated as Trump appears to be shifting his attention to autos now.

It was not immediately clear where the new round of aggression would leave the two leaders and their mercurial attempts to find trade peace.

Earlier while still in Quebec, Trump said he wants to make a deal on NAFTA, and he’s open to working with the current pact or striking separate agreements with Canada and Mexico — as long as they agree to renegotiate every five years.

end

SWAMP STORIES

What a joke:  the Dept of Justice reneges on its commitment to provide the necessary Trump-Russia documents to Congress

(courtesy Sara Carter)

DOJ Reneges On Commitment To Provide Trump Russia Docs To Congress

Authored by Sara Carter,

  • DOJ officials limit a briefing on new documents to a select few Congressional members
  • The briefing is planned to take place during the first two days of the North Korea Summit in Singapore, when all eyes will be on the negotiations
  • Sources worry the documents provided will be heavily redacted
  • A source says during a May 24 Congressional meeting with DOJ, the department argued with congressional members over who would have access to the documents

The Department of Justice reneged on a commitment to provide access to documents they promised to congressional lawmakers by Thursday morning. Instead, DOJ issued a press release after midnight suggesting they will only meet with a group of select lawmakers to discuss the matter on the same day the North Korea summit opens in Singapore, according to numerous sources and a DOJ statement.

Moreover, the Justice Department also issued new stipulations for briefing congressional members and limited the meeting with only the Gang of Eight, which is comprised of eight leaders within Congress who are briefed on classified intelligence matters.

These sources claim that briefing Gang of Eight lawmakers restricts the dissemination and discussion of the documents that will be taken for review. Although the DOJ contends that the documents are highly sensitive material, in reality, these documents are not considered to contain high-level national security information.

So while it seems that DOJ is complying, congressional sources say it means that the documents provided may be highly redacted.

A source familiar with the discussions stated that the documents, “…do not rise to Gang of Eight level material requiring such strict rules that would limit those members to discuss the material with other lawmakers.”

Lawmakers are also questioning the Justice Department’s decision to provide the documents early next week during the highly anticipated start of the North Korea summit. A senior Justice Department official announced the briefing is, “expected on Monday or Tuesday, depending on members’ schedules.”

On May 24, House Intelligence Committee Chairman Devin Nunes (R-CA), Rep. Trey Gowdy, (R-SC) and Rep. Adam Schiff (D-CA), met with DOJ officials and FBI Director Christopher Wray to discuss Nunes’ demand on April 24, for specific classified documents related to the committee’s investigation into the FBI’s handling of the Russia/Trump investigation. According to a source familiar with the discussions, the DOJ pleaded with the members, “not to say anything about the DOJ having brought the documents to the meeting.”

In last night’s press release, however, the DOJ admitted to having the documents. A senior Justice Department official accused the committee members of not reviewing the documents provided at the May meeting stating, “The Department and FBI will also provide the documents that were available for review but not inspected by the members at the previous briefing along with some additional material.”

According to sources with knowledge of the May 24 briefing, the DOJ argued with congressional members over who would have access to the documents during the meeting. The DOJ also limited the distribution of the documents to “only those members in the room” and would not allow investigators to review the documents for their ongoing investigation into the FBI’s handling of the alleged Russia/Trump probe.

“This request for documents is not at the Gang of Eight level,” said a source familiar with the matter.

“This is yet another line of obfuscation, stonewalling and delay tactics by the DOJ.They were supposed to deliver the documents to Congress Thursday and then at the last second did what they always do: fail to keep their commitment. Now they are waiting until the opening of the North Korea summit in an attempt to bury it from the public.”

Rep. Ron DeSantis (R-Fl) told this reporter that the DOJ’s failure to produce documents has put both Congress and the American people in a seemingly never ending predicament that does more harm than good for the nation.

“It’s the same old games and Congress is facilitating this behavior by continuing this back and forth with the Justice Department,” said DeSantis. The lawmaker noted that Congress has the power of the purse and authority to follow through with the contempt proceedings against DOJ Deputy Attorney General, Rod Rosenstein.

DeSantis added, Americans are upset about this and have every reason to be. They could’ve turned these documents over more than eight months ago and answered our questions and we wouldn’t be in the mess that we are in now.”

A senior Justice Department official said in the press release, The Department and FBI are prepared to brief members on certain questions specifically raised by the Speaker and other members… The Department and FBI believe it can provide information that is directly responsive to congressional inquiries in a manner that is consistent with its national security and law enforcement responsibilities, and is pleased to do so.”

The DOJ official said with regard to not providing the documents on Thursday, “Although the Department and FBI would have liked to provide this information as early as this week, officials have taken a little additional time to provide the most fulsome answers to the members’ questions as possible. The Department and FBI take congressional inquiries seriously and believes that the documents provided next week will be valuable to the Gang of Eight.

end
Nunes slams the Dept of Justice for Obstruction on FBI spy documents on Stefan Halper
(courtesy zero hedge)

Nunes Slams DOJ For “Obstruction” On FBI Spy Documents Related To Stefan Halper

House Intelligence Committee Chairman Devin Nunes has accused the Department of Justice of “obstruction” and using “an array of tactics” to withhold key documents related to the FBI’s use of a spy against the Trump campaign.

The spy in question is Stefan Halper, a 73-year-old Cambridge professor, former U.S. government official and longtime spook for the CIA and FBI – whose ex father-in-law was Ray Cline, former Deputy Director of the CIA.

Halper was outed as the FBI informant who infiltrated the Trump campaign to conduct espionage after the Washington Post and the New York Times ran reports that corroborated a March report by the Daily CallerThe Caller detailed Halper’s outreach to several low-level aides to the Trump campaign, including Carter Page, George Papadopoulos, and a cup of coffee he had with campaign co-chair Sam Clovis.

In a Friday letter to Deputy Attorney General Rod Rosenstein, Nunes accused the DOJ of refusing to turn over key documents concerning the agency’s use of Halper.

DOJ continues to obfuscate and delay its production using an array of tactics, such as incorrectly categorizing the requested documents as Gang-of-Eight-level material in order to limit access,” wrote Nunes, in reference to an April 30 subpoena for the documents. “Such conduct by DOJ is unacceptable because the Gang-of-Eight is a legal fiction that has no basis outside of the confines of Presidential approval and reporting of covert actions.”

Nunes added “Your continued refusal to permit Members of Congress and designated staff to review the requested documents is obstruction of a lawful Congressional investigation.”

Rosenstein appears nonplussed at the letter – with a DOJ official commenting to Fox News that the Deputy AG is busy with other matters, and will plan to respond during a previously scheduled briefing on Thursday.

“He, along with the FBI Director and DNI Coats, look forward to further briefing and again presenting responsive documents to Chairman Nunes and the rest of his colleagues in the Gang of 8 meeting scheduled for Thursday of this week,” the official said.

Nunes’ letter was in response to an offer by the Justice Department and the FBI to brief the “Gang of Eight” in an effort to blunt criticism from the House conservatives who repeatedly have pressed for documents and questioned the department’s conduct in the Russia investigation.

The Justice Department originally denied Congress access to any of the documents, citing national security concerns. But it later relented and held two high-level briefings last month in response to pressure from the White House, Nunes and House Speaker Paul Ryan, R-Wis. -Fox News

The DOJ official said last week that the agency would provide new materials and that “the documents that were available for review but not inspected by the members at the previous briefing.”

Frankly the sooner the Department of Justice complies with all of our document requests, which are legitimate document requests, the better this is going to be for everybody, and had they complied with the document requests earlier when we made them, we probably could have spared the country of all of this drama,” Ryan said Thursday.

I will not relent in my duties on behalf of the American public to discover all the facts in this matter,” Nunes concluded in his letter. “Any response falling short of this request will be considered an effort to conceal material information from Congress — a dangerous precedent that threatens the core of our democracy.”

FOX & friends

@foxandfriends

Rep. Nunes sets Tuesday deadline to turn over DOJ records

ON  TUESDAY night

HARVEY

 

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