GOLD: $1177.25 UP $0.20 (COMEX TO COMEX CLOSINGS)
Silver: $14.65 DOWN 4 CENTS (COMEX TO COMEX CLOSINGS)
Closing access prices:
Gold $1184.70
silver: $14.83
For comex gold:
AUGUST/
NUMBER OF NOTICES FILED TODAY FOR AUGUST CONTRACT: 17 NOTICE(S) FOR 1700
TOTAL NOTICES SO FAR 2197 FOR 219,700 OZ (6.8335 tonnes)
For silver:
AUGUST
96 NOTICE(S) FILED TODAY FOR
480,000 OZ/
Total number of notices filed so far this month: 1149 for 5,745,000 oz
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Bitcoin: BID $6378/OFFER $6463: UP $78(morning)
Bitcoin: BID/ $6454/offer $6539: UP $220 (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: $1182.90
NY price at the same time:$1177.50
PREMIUM TO NY SPOT: $5.40
XX
Second gold fix early this morning: $ 1180.84
USA gold at the exact same time:$1174.15
PREMIUM TO NY SPOT: $5.49
China is controlling the gold market
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 1011 CONTRACTS FROM 240,621 DOWN TO 235,287 DESPITE YESTERDAY’S GOOD 14 CENT ADVANCE IN SILVER PRICING AT THE COMEX. WE HAVE GENERALLY BEEN WITNESSING A SLOW COMEX ACCUMULATION THESE PAST SEVERAL DAYS BUT THAT STOPPED ABRUPTLY THE LAST FEW DAYS. HOWEVER, WE HAVE ALSO WITNESSED A LARGE AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY(WELL OVER 30 MILLION OZ AT THE COMEX FOR JULY AND OVER 5 MILLION OZ FOR AUGUST) AS WELL AS CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S. WE WERE NOTIFIED THAT WE HAD A LARGE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:
1451 EFP’S FOR SEPT. , 0 EFP’S FOR DECEMBER AND ZERO FOR ALL OTHER MONTHS AND THEREFORE TOTAL ISSUANCE: OF 1451 CONTRACTS. WITH THE TRANSFER OF 1451 CONTRACTS, WHAT THE CME IS STATING IS THAT THERE IS NO SILVER (OR GOLD) TO BE DELIVERED UPON AT THE COMEX AS THEY MUST EXPORT THEIR OBLIGATION TO LONDON. ALSO KEEP IN MIND THAT THERE CAN BE A DELAY OF 24-48 HRS IN THE ISSUING OF EFP’S. THE 1451 EFP CONTRACTS TRANSLATES INTO 23.665MILLION OZ AND ACCOMPANYING:
1.THE 14 CENT RISE IN SILVER PRICE AT THE COMEX AND
2. THE STRONG AMOUNT OF SILVER OUNCES WHICH STOOD FOR THE JUNE/2018 COMEX DELIVERY MONTH. (5.420 MILLION OZ) 30.370 MILLION OZ STANDING FOR DELIVERY IN JULY, AND NOW 5.950 MILLION OZ FOR AUGUST.
ACCUMULATION FOR EFP’S/SILVER/J.P.MORGAN’S HOUSE OF BRIBES, / STARTING FROM FIRST DAY NOTICE/FOR MONTH OF JULY:
19,021 CONTRACTS (FOR 13 TRADING DAYS TOTAL 19,021 CONTRACTS) OR 95.105 MILLION OZ: (AVERAGE PER DAY: 1463 CONTRACTS OR 7.315 MILLION OZ/DAY)
TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER: SO FAR THIS MONTH OF JULY: 95.105 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 13.58% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)* JUNE’S 345.43 MILLION OZ IS THE SECOND HIGHEST RECORDED ISSUANCE OF EFP’S AND IT FOLLOWED THE RECORD SET IN APRIL 2018 OF 385.75 MILLION OZ.
ACCUMULATION IN YEAR 2018 TO DATE SILVER EFP’S: 1,924.77 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
ACCUMULATION FOR JUNE 2018: 345.43 MILLION OZ
ACCUMULATION FOR JULY 2018: 172.84 MILLION OZ
RESULT: WE HAD A SMALL SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1011 DESPITE THE GOOD 14 CENT GAIN IN SILVER PRICING AT THE COMEX YESTERDAY. THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 1451 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) .
TODAY WE GAINED A SMALL SIZED: 440 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:
i.e 1451 OPEN INTEREST CONTRACTS HEADED FOR LONDON (EFP’s) TOGETHER WITH A DECREASE OF 1011 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A 14 CENT RISE IN PRICE OF SILVER AND A CLOSING PRICE OF $14.64 WITH RESPECT TO YESTERDAY’S TRADING. YET WE HAD A GIGANTIC AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY IN THE BIG JULY DELIVERY MONTH OF SLIGHTLY OVER 30 MILLION OZ AND NOW IN AUGUST ANOTHER BIG 5.955 MILLION OZ IN A NON ACTIVE MONTH. IT SURE LOOKS LIKE ANOTHER FAILED BANKER SHORT COVERING EXERCISE AS BANKERS ARE SCRAMBLING TO COVER THEIR HUGE SHORTFALL IN SILVER.
In ounces AT THE COMEX, the OI is still represented by OVER 1 BILLION oz i.e. 1.176 MILLION OZ TO BE EXACT or 168% of annual global silver production (ex Russia & ex China).
FOR THE NEW FRONT AUGUST MONTH/ THEY FILED AT THE COMEX: 96 NOTICE(S) FOR 480,000 OZ OF SILVER
IN SILVER, WE SET THE NEW RECORD OF OPEN INTEREST AT 243,411 CONTRACTS ON APRIL 9.2018. AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $16.51
ON THE DEMAND SIDE WE HAVE THE FOLLOWING:
- HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ MAY: 36.285 MILLION OZ ; JUNE/2018 (5.420 MILLION OZ) AND JULY 2018 AMOUNT STANDING: 30.370 MILLION OZ ) AND NOW FOR AUGUST 5.950 MILLION OZ.
- HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018
- HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
- RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/ AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ
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).
IN GOLD, THE OPEN INTEREST FELL BY A CONSIDERABLE SIZED 2509 CONTRACTS DOWN TO 477,460 WITH THE LOSS IN THE COMEX GOLD PRICE/YESTERDAY’S TRADING (A FALL IN PRICE OF $1.05). THE CME RELEASED THE DATA FOR EFP ISSUANCE AND IT TOTALED A GOOD SIZED 7166 CONTRACTS:
AUGUST HAD AN ISSUANCE OF 0 CONTRACTS, OCTOBER HAD 0EFP’S ISSUED AND, DECEMBER HAD AN ISSUANCE OF 7166 CONTACTS AND ALL OTHER MONTHS ZERO. The NEW COMEX OI for the gold complex rests at 477,460. 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 AN A GOOD OI GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 4657 CONTRACTS: 2509 OI CONTRACTS DECREASED AT THE COMEX AND 7166 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS TOTAL OI GAIN: 4657 CONTRACTS OR 465,700 OZ = 14.48 TONNES. AND ALL OF THIS GOOD DEMAND OCCURRED WITH A LOSS IN THE PRICE OF GOLD/ YESTERDAY TO THE TUNE OF $1.05.???..
YESTERDAY, WE HAD 11,389 EFP’S ISSUED.
ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JUNE : 97,337 CONTRACTS OR 9,733,700 OZ OR 302.75 TONNES (13 TRADING DAYS AND THUS AVERAGING: 7487 EFP CONTRACTS PER TRADING DAY OR 748,700 OZ/ TRADING DAY),,
TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS : THIS MONTH IN 13 TRADING DAYS IN TONNES: 302.75 TONNES
TOTAL ANNUAL GOLD PRODUCTION, 2017, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 2555 TONNES
THUS EFP TRANSFERS REPRESENTS 302.75/2550 x 100% TONNES = 11.87% OF GLOBAL ANNUAL PRODUCTION SO FAR IN JULY ALONE.***
ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE: 5,021.38* TONNES *SURPASSED ANNUAL PROD’N
ACCUMULATION OF GOLD EFP’S FOR JANUARY 2018: 653.22 TONNES (21 TRADING DAYS)
ACCUMULATION OF GOLD EFP’S FOR FEBRUARY 2018: 649.45 TONNES (20 TRADING DAYS)
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)
ACCUMULATION OF GOLD EFP FOR JUNE 2018 650.71 TONNES (21 TRADING DAYS)
ACCUMULATION OF GOLD EFP FOR JULY 2018 605.5 TONNES (21 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 2509 WITH THE LOSS IN PRICING ($1.05 THAT GOLD UNDERTOOK YESTERDAY) // . WE ALSO HAD A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 7166 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 7166 EFP CONTRACTS ISSUED, WE HAD A GOOD GAIN OF 4657 CONTRACTS IN TOTAL OPEN INTEREST ON THE TWO EXCHANGES:
7166 CONTRACTS MOVE TO LONDON AND 2509 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 14.48 TONNES). ..AND THIS GOOD DEMAND OCCURRED DESPITE A LOSS OF $1.05 IN YESTERDAY’S TRADING AT THE COMEX!!!. ????
we had: 17 notice(s) filed upon for 1700 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 $0.20 TODAY: /
NO CHANGE IN GOLD INVENTORY AT THE GLD
/GLD INVENTORY 773.41 TONNES
Inventory rests tonight: 773.41 tonnes.
TO ALL INVESTORS THINKING OF BUYING GOLD THROUGH THE GLD ROUTE: YOU ARE MAKING A TERRIBLE MISTAKE AS THE CROOKS ARE USING WHATEVER GOLD COMES IN TO ATTACK BY SELLING THAT GOLD. IT SURE SEEMS TO ME THAT THE GOLD OBLIGATIONS AT THE GLD EXCEED THEIR INVENTORY
SLV/
WITH SILVER DOWN 4 CENTS TODAY
NO CHANGE IN SILVER INVENTORY AT THE SLV
/INVENTORY RISES AT 329.104 MILLION OZ.
NOTE THE DIFFERENCE BETWEEN THE GLD AND SLV: THE CROOKS CAN RAID GOLD BECAUSE THEY DO HAVE SOME PHYSICAL. THEY DO NOT RAID SILVER PROBABLY BECAUSE THERE IS NO REAL SILVER INVENTORIES BEHIND THEM
end
First, here is an outline of what will be discussed tonight:
1. Today, we had the open interest in SILVER FELL BY A SMALL SIZED 1011 CONTRACTS from 240,038 DOWN TO 235,287 (BUT STILL WITHIN SPITTING DISTANCE TO A NEW COMEX RECORD. THE LAST RECORD WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). THE PREVIOUS RECORD TO THAT WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER 1 1/4 YEARS AGO. THE PRICE OF SILVER ON THAT DAY: $17.89. AS YOU CAN SEE, WE HAVE RECORD HIGH OPEN INTERESTS IN SILVER ACCOMPANIED BY A CONTINUAL LOWER PRICE WHEN THAT RECORD WAS SET…..VERY STRANGE INDEED AND IT WILL COME TO FRUITION AGAIN VERY SHORTLY
.
OUR CUSTOMARY MIGRATION OF COMEX LONGS MORPH INTO LONDON FORWARDS CONTINUES AS OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE:
0 EFP CONTRACTS FOR AUGUST., 1451 EFP CONTRACTS FOR SEPTEMBER, 0 CONTRACTS FOR DECEMBER AND AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1451 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 1011 CONTRACTS TO THE 1451 OI TRANSFERRED TO LONDON THROUGH EFP’S, WE OBTAIN A NET GAIN OF 440 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 2.200 MILLION OZ!!! AND YET WE ALSO HAVE A STRONG DEMAND FOR PHYSICAL AS WE WITNESSED A FINAL STANDING OF GREATER THAN 30 MILLION OZ FOR JULY AND NOW ANOTHER STRONG 5.950 MILLION OZ FOR AUGUST... AND YET ALL OF THIS HUGE PHYSICAL DEMAND OCCURRED DESPITE A SMALLISH 14 CENT PRICING ADVANCE AT THE SILVER COMEX!!!!????.
RESULT: A FAIR SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE 14 CENT PRICING GAIN THAT SILVER UNDERTOOK IN PRICING YESTERDAY.BUT WE ALSO HAD A STRONG SIZED 1451 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG SIZED AMOUNT OF SILVER OUNCES STANDING FOR AUGUST, 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)FRIDAY MORNING/THURSDAY NIGHT: Shanghai closed DOWN 36.23 POINTS OR 1.34% /Hang Sang CLOSED UP 113.35 POINTS OR 0.42%/ / The Nikkei closed UP 78.34 POINTS OR 0.35%/Australia’s all ordinaires CLOSED UP 0.21% /Chinese yuan (ONSHORE) closed UP at 6.8826 AS POBC HALTS ITS HUGE DEVALUATION /DELEGATION COMING TO THE USA TO SEE TRUMP/Oil UP to 65.80 dollars per barrel for WTI and 72.05 for Brent. Stocks in Europe OPENED DEEPLY IN THE RED //. ONSHORE YUAN CLOSED UP AT 6.8826 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8613: HUGE DEVALUATION/PAST SEVERAL DAYS STOPS TRADE TALKS WILL RESUME IN THE USA : /ONSHORE YUAN TRADING STRONGER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED
/NORTH KOREA/SOUTH KOREA
i)North Korea/South Korea/USA/Russia
b) REPORT ON JAPAN
3 c CHINA
The pentagon warns that China with its long range bombers are training for a strike against the uSA. And the USA is facilitating gold purchases by China onto their soil?…
( zerohedge)
4. EUROPEAN AFFAIRS
5. RUSSIAN AND MIDDLE EASTERN AFFAIRS
i)Iran/USA
Pompeo forms an “Ian Action Group” to coordinate all Iran strategy
( zerohedge)
This is rather scary: Russia is deploying nuclear capable strategic bombers next door to Alaska
( zerohedge)
iii)Turkey
If Turkey fails (collapses) the following will happen: millions of refugees will be flooding into Europe
( zerohedge)
iv)Turkey
(courtesy zerohedge)
6 .GLOBAL ISSUES
( Mac Slavo/SHTFPlan.com)
ii)Canada
Canada reports a huge rise in consumer prices of 3.% year over year and these numbers are really higher as they disguise the true inflation rate. Strangely the loonie spiked higher on the news because the Bank of Canada governor mist raise rates fast against a slowing economy
( zerohedge)
iii)Richard Breslow, is one smart cookie: he points out the huge problems facing the globe this morning which is basically totally ignored e.g. the German bund at .30%, the huge fall in the Turkish lira and other emerging nation currencies
( Richard Breslow/zerohedge)
7. OIL ISSUES
8. EMERGING MARKET
9. PHYSICAL MARKETS
i)Goldcore notes that gold’s fall in price may be official invention by the bankers and the world’s financial system may be showing signs of cracking up
( Chris Powell/Goldcore)
ii)This has zero chance of happening: Keith Weiner is advocating a bond issuance where interest is paid in gold
(Keith Weiner/GATA)
10. USA stories which will influence the price of gold/silver)
i)Market trading /GOLD/MARKET MOVERS:
MARKET TRADING
We are now seeing soft data reports showing that the USA is rolling over: today it is U. of Michigan sentiment and it slumped to an 11 month low. The all important spending category plunged
( zerohedge)
iii)USA ECONOMIC/GENERAL STORIES
iv)SWAMP STORIES
a)What corruption: A Pentagon whistleblower, Adam Lovinger has been stripped of his security clearance and demoted after complaining about questionable government contracts to Stefan Halper and a company headed by Chelsea Clinton
( zerohedge)
b)The Wall Street journal is the only main stream media reporting on the misdeeds of Bruce Ohr, the Dept of Justice and the FBI. Kim Strassel has done a great job reporting on this although she has been receiving a lot of abuse.
She correctly states that all the information on this is located on the 302 forms…but strangely they are all classified. Once they are revealed to congress and once declassified, we will know the truth
( Kim Strassel, Wall Street Journal/zero hedge)
Let us head over to the comex:
The total gold comex open interest FELL BY A CONSIDERABLE SIZED 2509 CONTRACTS DOWN to an OI level 477,460 WITH THE FALL IN THE PRICE OF GOLD ($1.05 LOSS/ YESTERDAY’S COMEX 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 AS WELL AS WE WITNESS THE COMEX OPEN INTEREST COLLAPSE. ONCE WE START A NEW MONTH, WE WILL NOW SEE THE OPEN INTEREST RISE AS THE CROOKS PLAY THEIR RIGGED GAME.
WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF AUGUST. THE CME REPORTS THAT THE BANKERS ISSUED A STRONG SIZED COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 7166 EFP CONTRACTS WERE ISSUED:
OCTOBER: 0 EFP’S AND DECEMBER: 7166 AND ZERO FOR ALL OTHER MONTHS:
TOTAL EFP ISSUANCE: 7166 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: A GOOD 4657 TOTAL CONTRACTS IN THAT 7166 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST 2509COMEX CONTRACTS.
NET GAIN ON THE TWO EXCHANGES: 4657 contracts OR 465,700 OZ OR 14.48 TONNES.
Result: A CONSIDERABLE DECREASE IN COMEX OPEN INTEREST DESPITE THE LOSS IN PRICE/YESTERDAY (ENDING UP WITH A FALL IN PRICE OF $1.05). THE TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES: 4657 OI CONTRACTS..
We have now entered the active contract month of AUGUST where we witnessed the highest obliteration of contracts on record for the first day notice i.e. 33,938 contracts for an open interest standing of only 4,765 contracts. For the August contract month, we lost 111contracts to stand at 272 contracts. The number of notices filed for yesterday was 119 contracts so we gained 8 contacts or an additional 800 oz will stand at the comex as these investors refused to morph into London based forwards and receive a fiat bonus for their efforts.
AFTER AUGUST, SEPTEMBER LOST 45 CONTRACTS AND THUS FALLS TO 2224 CONTRACTS.
THE NEXT ACTIVE DELIVERY MONTH IS OCTOBER AND HERE THE OI LOST 130 CONTRACTS DOWN TO 57,474 CONTRACTS. DECEMBER SAW ITS OPEN INTEREST FALL BY 2259 CONTRACTS DOWN TO 361,516.
WE HAD 17 NOTICES FILED AT THE COMEX FOR 1700 OZ.
INITIALLY FOR THE AUGUST 2017 CONTRACT WE HAD A STRONG 831,100 OZ STAND (25.85 TONNES)
BY MONTH END ONLY 524,500 OZ EVENTUALLY STOOD (16.33 TONNES) AS MANY MORPHED INTO LONDON BASED FORWARDS.
ON AUGUST 17.2017: 1383 CONTRACTS WERE OPEN FOR THE UPCOMING SEPT CONTRACTS VS TODAY, AUG. 17.2018: 2224
Trading Volumes on the COMEX
PRELIMINARY COMEX VOLUME FOR TODAY: 223,419 contracts
CONFIRMED COMEX VOL. FOR YESTERDAY: 373,584 contracts
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And now for the wild silver comex results.
Total silver OI FELL BY A SMALL SIZED 1011 CONTRACTS FROM 240,038 DOWN TO 235,287 (AND A LITTLE FURTHER FROM A NEW RECORD OI FOR SILVER. (THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S OI COMEX LOSS OCCURRED DESPITE A 14 CENT GAIN IN PRICING THAT SILVER UNDERTOOK YESTERDAY.
SINCE WE ARE NOW INTO THE NON – ACTIVE DELIVERY MONTH OF AUGUST, WE WERE INFORMED THAT WE HAD A STRONG SIZED 1451 EFP CONTRACTS: FOR AUGUST: 0 EFP CONTRACTS, FOR SEPT: 1451 CONTRACTS AND FOR DECEMBER: 0 CONTRACTS 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: 1451. ON A NET BASIS WE GAINED 440 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED 1011 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 1451 OI CONTRACTS NAVIGATING OVER TO LONDON.
NET GAIN ON THE TWO EXCHANGES: 440 CONTRACTS.
.
FOR THE FRONT MONTH OF AUGUST WE HAD A NET LOSS OF 158 CONTRACTS DOWN T0 137 CONTRACTS. WE HAD 273 NOTICES FILED YESTERDAY SO WE GAINED 115 CONTRACTS STANDING OR AN ADDITIONAL 575,000 OZ WILL STAND AT THE COMEX AS THESE GUYS AGAIN REFUSED TO MORPH INTO LONDON BASED FORWARDS AND RECEIVE A FIAT BONUS. QUEUE JUMPING AT THE SILVER COMEX IS THE NORM AS THERE IS CONSIDERABLE AMOUNT OF PHYSICAL LOCATED HERE. THERE IS LITTLE QUEUE JUMPING AT THE GOLD COMEX FOR THE SIMPLE REASON THAT THERE IS HARDLY ANY GOLD THERE.
The next active delivery month after August for silver is September and here the OI FELL by 5257 contracts DOWN to 127,871. October GAINED 20 contracts to stand at 201
After October, the next big delivery month is December and here the OI rose by 3448 contracts up to 91,706 contracts.
We had 96 notice(s) filed for 480,000 OZ for the AUGUST 2018 COMEX contract for silver
AND NOW COMPARISON VS AUGUST LAST YR:
ON FIRST DAY NOTICE JULY 31/2017: 1,965,000 OZ STOOD FOR DELIVERY
THE FINAL AMOUNT OF SILVER STANDING: AUGUST 30.2017: 6,245,000 OZ AS WE HAD CONSIDERABLE QUEUE JUMPING.
FOR THOSE THAT WISH TO FOLLOW TODAY’S SILVER OI VS LAST YR
AUGUST 16.2017: 95,493 OPEN INTEREST CONTACTS STILL OPEN FOR THE UPCOMING SEPT ACTIVE CONTRACT MONTH VS TODAY AUG 15.2018: 127,871 CONTRACTS.(DEMAND REMAINS EXTREMELY STRONG DESPITE THE LOWER PRICE)
INITIAL standings for AUGUST/GOLD
AUGUST 17/2018.
| Gold | Ounces |
| Withdrawals from Dealers Inventory in oz | nil oz |
| Withdrawals from Customer Inventory in oz |
19,636.390 oz
scotia
|
| Deposits to the Dealer Inventory in oz | NIL oz |
| Deposits to the Customer Inventory, in oz |
nil oz
|
| No of oz served (contracts) today |
17 notice(s)
1700 OZ
|
| No of oz to be served (notices) |
255 contracts
(25500 oz)
|
| Total monthly oz gold served (contracts) so far this month |
2214 notices
221400 OZ
6.88 TONNES
|
| Total accumulative withdrawals of gold from the Dealers inventory this month | NIL oz |
| Total accumulative withdrawal of gold from the Customer inventory this month | xxx oz |
we have tiny activity inside the comex but still zero gold enters the comex
For AUGUST:
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 17 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 10 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 AUGUST. contract month, we take the total number of notices filed so far for the month (2214) x 100 oz or 221400 oz, to which we add the difference between the open interest for the front month of AUGUST. (272 contracts) minus the number of notices served upon today (17 x 100 oz per contract) equals 246,900 OZ OR 7.6796 TONNES) the number of ounces standing in this non active month of AUGUST
Thus the INITIAL standings for gold for the AUGUST contract month:
No of notices served (2214 x 100 oz) + {(272)OI for the front month minus the number of notices served upon today (17 x 100 oz )which equals 246,900 oz standing OR 7.696 TONNES in this active delivery month of AUGUST.
WE GAINED 8 COMEX CONTRACTS OR AN ADDITIONAL 800 OZ WILL STAND AS THESE GUYS REFUSED TO MORPH INTO LONDON BASED FORWARDS.
THERE ARE ONLY 8.861 TONNES OF REGISTERED COMEX GOLD AVAILABLE FOR DELIVERY AGAINST 7.679 TONNES STANDING FOR JULY
IN THE LAST 24 MONTHS 91 NET TONNES HAS LEFT THE COMEX.
end
And now for silver
AND NOW THE AUGUST DELIVERY MONTH
AUGUST INITIAL standings/SILVER
| Silver | Ounces |
| Withdrawals from Dealers Inventory | nil oz |
| Withdrawals from Customer Inventory |
380,958.636 oz
CNT
Delaware
Scotia
|
| Deposits to the Dealer Inventory |
nil oz
|
| Deposits to the Customer Inventory |
595,605.715 oz
scotia
|
| No of oz served today (contracts) |
96
CONTRACT(S)
(480,000 OZ)
|
| No of oz to be served (notices) |
41 contracts
(205,000 oz)
|
| Total monthly oz silver served (contracts) | 1149 contracts
(5,745,000 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
total dealer withdrawals: nil oz
we had 1 deposit into the customer account
i) Into JPMorgan: nil oz
*** JPMorgan for most of 2017 and in 2018 has adding to its inventory almost every single day.
JPMorgan now has 145.4 million oz of total silver inventory or 50.8% of all official comex silver. (145 million/286 million)
iii) Into Scotia: 595,605.715 oz
total customer deposits today: 595,605.715 oz
we had 3 withdrawals from the customer account;
i) Out of CNT: 80,011.176 oz
ii) Out of International Delaware: 20,054.84 oz
iii) Out of Scotia: 280,892.636
total withdrawals: 380,958.636 oz
we had 0 adjustment
total dealer silver: 82.761 million
total dealer + customer silver: 287.566 million oz
The total number of notices filed today for the AUGUST. contract month is represented by 96 contract(s) FOR 480,000 oz. To calculate the number of silver ounces that will stand for delivery in AUGUST., we take the total number of notices filed for the month so far at 1149 x 5,000 oz = 5,745,000 oz to which we add the difference between the open interest for the front month of AUGUST. (137) and the number of notices served upon today (96 x 5000 oz) equals the number of ounces standing.
.
Thus the INITIAL standings for silver for the AUGUST/2018 contract month: 1149(notices served so far)x 5000 oz + OI for front month of AUGUST(137) -number of notices served upon today (96)x 5000 oz equals 5,950,000 oz of silver standing for the AUGUST contract month
WE GAINED 115 CONTRACTS OR AN ADDITIONAL 575,000 OZ WILL STAND FOR DELIVERY AT THE COMEX AND THESE GUYS REFUSED TO MORPH INTO A LONDON BASED FORWARDS AND THUS THEY WILL NOT TAKE THE FIAT BONUS.
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
ESTIMATED VOLUME FOR TODAY: 79,521CONTRACTS
CONFIRMED VOLUME FOR YESTERDAY: 131,702 CONTRACTS absolutely criminal
YESTERDAY’S CONFIRMED VOLUME OF 131.702 CONTRACTS EQUATES TO 658 million OZ OR 94.0% OF ANNUAL GLOBAL PRODUCTION OF SILVER
COMMODITY LAW SUGGESTS THAT OPEN INTEREST SHOULD NOT BE MORE THAN 3% OF ANNUAL GLOBAL PRODUCTION. THE CROOKS ARE SUPPLYING MASSIVE PAPER TRYING TO KEEP SILVER IN CHECK.
The record level of silver open interest is 234,787 contracts set on April 21./2017 with the price at that day at $18.42
The previous record was 224,540 contracts with the price at that time of $20.44
end
NPV for Sprott
1. Sprott silver fund (PSLV): NAV RISES TO -4.40% (AUGUST 17/2018)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.60% to NAV (AUGUST 17/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -4.40%-/Sprott physical gold trust is back into NEGATIVE/
(courtesy Sprott/GATA)
3.SPROTT CEF.A FUND (FORMERLY CENTRAL FUND OF CANADA):
NAV 12.21/TRADING 11.73//DISCOUNT 3.86.
END
And now the Gold inventory at the GLD/
AUGUST 17/WITH GOLD UP 20 CENTS: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 773.41 TONNES
AUGUST 16/LATE LAST NIGHT, WITH GOLD DOWN $1.05: THE CROOKS RAIDED THE COOKIE JAR ONCE AGAIN: THIS TIME BY 2.06 TONNES/INVENTORY RESTS AT 774.59 TONNES, AND THEN JUST NOW ANOTHER 1.18 TONNES OF GOLD WITHDRAWN TO LEAVE THE INVENTORY LEVEL OF 773.41 TONNES/
AUGUST 15/WITH GOLD DOWN $15.15/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 776.65 TONNES
AUGUST 14/WITH GOLD DOWN $0.45, A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 9.43 TONNES//INVENTORY RESTS AT 776.65 TONNES
AUGUST 13/with gold down $18.00: no changes in gold inventory at the crooked GLD/inventory rests at 786.08 tonnes
AUGUST 10/WITH GOLD DOWN 55 CENTS: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 786.08 TONNES
AUGUST 9/WITH GOLD DOWN BY 70 CENTS, OUR BANKERS AGAIN RAIDED THE GOLD COOKIE JAR TO THE TUNE OF 1.45 TONNES AND THUS THE INVENTORY RESTS AT 786.08 TONNES.ANYBODY HOLDING GOLD AT THE COMEX MUST REMOVE THEIR GOLD IMMEDIATELY AND PLACE IT IN A PRIVATE NON BANK OR CALL ANDREW MAGUIRE AT KINESIS
AUGUST 8/WITH GOLD UP ANOTHER $2.75, OUR BANKERS MUST BE DESPERATE AS THEY RAIDED THE GOLD COOKIE JAR AGAIN TO THE TUNE OF 1.18 TONNES/INVENTORY RESTS TONIGHT AT 788.71 TONNES. ANYBODY WHO KEEPS HIS GOLD AT THE COMEX IS VERY FOOLISH..ALL GOLD AT THE COMEX IS UNALLOCATED.
AUGUST 7/WITH GOLD UP 0.75 TODAY/ANOTHER GIGANTIC WITHDRAWAL OF 6.04 TONNES AND THIS GOLD WAS TO BE USED IN AN ATTEMPTED RAID TODAY AND FAILED/INVENTORY RESTS AT 788.71 TONNES
AUGUST 6/WITH GOLD DOWN $5.30 TODAY: ANOTHER WITHDRAWAL OF 2.06 TONNES AND THIS GOLD WAS USED IN THE RAID TODAY/GLD INVENTORY RESTS TODAY AT 794.90 TONNES
AUGUST 3/WITH GOLD UP $3.10/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 796.96 TONNES
AUGUST 2/WITH GOLD DOWN $7.20/A HUGE WITHDRAWAL OF 3.24 TONNES FROM THE GLD WHICH NO DOUBT WAS USED IN THE RAID TODAY/INVENTORY RESTS AT 796.96 TONNES
AUGUST 1/WITH GOLD DOWN $4.65/NO CHANGE IN GOLD INVENTORY AT THE GLD.INVENTORY RESTS AT 800.20 TONNES
JULY 31/WITH GOLD UP $2.05/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 800.20
JULY 30/WITH GOLD DOWN $0.95/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 800.20 TONNES
july 27/WITH GOLD DOWN $2.85 TODAY, NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 800.20 TONNES
JULY 26./WITH GOLD DOWN $5.65: A WITHDRAWAL OF 2.35 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 800.20 TONNES
JULY 25/WITH GOLD UP $6.45; NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 802.55 TONNES
JULY 24/ WITH GOLD DOWN 10 CENTS: A HUGE DEPOSIT OF 4.42 TONNES INTO THE GLD/INVENTORY RESTS AT 802.55 TONNES
JULY 23/WITH GOLD DOWN $5.55: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 798.13 TONNES
JULY 20/WITH GOLD UP $4.15 A HUGE DEPOSIT OF 4.12 TONNES OF GOLD INTO THE GLD.INVENTORY RESTS AT 798.13 TONNES
JULY 19./WITH GOLD DOWN $1.00: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 794.01 TONNES
JULY 18/WITH GOLD UP 0.40: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 794.01 TONNES
JULY 17/WITH GOLD DOWN $12.40, WE HAD A BIG WITHDRAWAL OF 1.18 TONNES FROM THE GLD/INVENTORY RESTS AT 794.01 TONNES
JULY 16/WITH GOLD DOWN $1.55/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 795.19 TONNES
JULY 13/WITH GOLD DOWN $5.35 THE CROOKS RAID THE COOKIE JAR AGAIN TO THE TUNE OF 3.83 TONNES/INVENTORY RESTS AT 795.19 TONNES
JULY 12/WITH GOLD UP $2.30: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 799.02 TONNES
JULY 11/WITH GOLD DOWN $10.75 THE CROOKS RAIDED THE COOKIE JAR AGAIN TO THE TUNE OF 1.75 TONNES/INVENTORY RESTS AT 799.02 TONNES
JULY 10/WITH GOLD DOWN $3.85: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 800.77 TONNES
july 9/WITH GOLD UP $4.00/ANOTHER RAID ON THE GOLD COOKIE JAR: TWO WITHDRAWALS OF 1.18 TONNES THIS MORNING AND 1.47 TONNES THIS AFTERNOON/INVENTORY RESTS AT 800.77 TONNES
JULY 6/WITH GOLD DOWN $2.45: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 803.42 TONNES
JULY 5/WITH GOLD UP ANOTHER $5.15, THE CROOKS RAIDED THE COOKIE JAR AGAIN TO THE TUNE OF 5.89 TONNES/INVENTORY RESTS AT 803.42 TONNES IN THE LAST 10 TRADING DAYS GLD HAS LOST A HUGE 25.34 TONNES WITH A LOSS OF ONLY $15.25 IN PRICE
July 3/WITH GOLD UP $11.15/THE CROOKS RAIDED THE GLD INVENTORY AGAIN TO THE TUNE OF 9.73 TONNES/INVENTORY RESTS AT 809.31 TONNES
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
AUGUST 17/2018/ Inventory rests tonight at 774.59 tonnes
*IN LAST 435 TRADING DAYS: 157.54 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 385 TRADING DAYS: A NET 1.00 TONNES HAVE NOW BEEN REMOVED FROM GLD INVENTORY.
end
Now the SLV Inventory/
AUGUST 17/WITH SILVER DOWN 4 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.104 MILLION OZ
AUGUST 16/WITH SILVER UP 14 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV” A DEPOSIT OF 1.881 MILLION OZ//INVENTORY RESTS AT 329.104 MILLION OZ/
AUGUST 15/WITH SILVER DOWN 56 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 327.223 MILLION OZ/
AUGUST 14/WITH SILVER UP 6 CENTS TODAY/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 327.223 MILLION OZ
AUGUST 13./with silver down 31 cents today: no changes in silver inventory/inventory rests at 327.223 million oz/
AUGUST 10/WITH SILVER DOWN 15 CENTS: A BIG CHANGE IN SILVER INVENTOR: A WITHDRAWAL OF 1.222 MILLION OZ FROM THE SLV INVENTORY /INVENTORY RESTS AT 327.223 MILLION OZ/
AUGUST 9/WITH SILVER UP 3 CENTS TODAY:NO CHANGE IN SILVER INVENTORY /INVENTORY RESTS AT 328.445 MILLION OZ/
AUGUST 8/WITH SILVER UP 5 CENTS TODAY: NO CHANGE IN SILVER INVENTORY/INVENTORY RESTS AT 328.445 MILLION OZ
AUGUST 7/WITH SILVER UP 3 CENTS, A RAID OF 1.78 MILLION OZ (A WITHDRAWAL) AT THE SLV.INVENTORY RESTS AT 328.445 MILLION OZ/
AUGUST 6/WITH SILVER DOWN 11 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.034 MILLION OZ INTO THE SLV INVENTORY/INVENTORY RESTS AT 330.326 MILLION OZ/
AUGUST 3/WITH SILVER UP 7 CENTS TODAY/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.292 MILLION OZ/.
AUGUST 2 WITH SILVER DOWN 6 CENTS TODAY/A SMALL CHANGE IN SILVER INVENTORY AT THE SLV/ A WITHDRAWAL OF 141,000 OZ FOR THEIR MONTHLY STORAGE AND INSURANCE FEES:INVENTORY RESTS AT 329.292 MILLION OZ/
AUGUST 1/WITH SILVER DOWN 12 CENTS TODAY, NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.433 MILLION OZ/
JULY 31/WITH SILVER UP 5 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.433 MILLION OZ/
JULY 30/WITH SILVER UP 3 CENTS TODAY; NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.433 MILLION OZ.
JULY 27/WITH SILVER FLAT TODAY, NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.433 MILLION OZ/
JULY 26/WITH SILVER DOWN 10 CENTS: STRANGE: A BIG CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.046 MILLION OZ OF SILVER/INVENTORY RESTS AT 329.433 MILLION OZ
JULY 25: WITH SILVER UP 8 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV/ A WITHDRAWAL OF 658,000 INVENTORY RESTS AT 328.304 MILLION OZ/
JULY 24/WITH SILVER UP 8 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 328.962 MILLION OZ/
JULY 23/WITH SILVER DOWN 11 CENTS/NO CHANGES IN SILVER INVENTORY INTO THE SLV/INVENTORY RESTS AT 328.962 MILLION OZ/
JULY 20/WITH SILVER UP 10 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.411 MILLION OZ INTO THE SLV INVENTORY
INVENTORY RESTS AT 328.962 MILLION OZ
JULY 19/WITH SILVER DOWN 17 CENTS TODAY; A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 752,000 OZ INTO THE SLV INVENTORY/INVENTORY RESTS AT 327.551 MILLION OZ/
JULY 18/WITH SILVER DOWN 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 326.799 MILLION OZ/
JULY 17/WITH SILVER DOWN 20 CENTS TODAY: A CHANGE IN SILVER INVENTORY A WITHDRAWAL OF 1.001 MILLION OZ FROM THE SLV: INVENTORY RESTS AT 326.799 MILLION OZ/
JULY 16/WITH SILVER FLAT TODAY, A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.128 MILLION OZ//INVENTORY RESTS AT 327.880 MILLION OZ
JULY 13/WITH SILVER DOWN 16 CENTS TODAY/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 326.752 MILLION OZ.
JULY 12/WITH SILVER UP 12 CENTS TODAY: ANOTHER BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.035 MILLION OZ/INVENTORY RESTS AT 326.752 MILLION OZ/
JULY 11/WITH SILVER DOWN 22 CENTS TODAY: ANOTHER HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 565,000/INVENTORY RESTS AT 325.717 MILLION OZ
JULY 10/WITH SILVER DOWN 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 325.151 MILLION OZ
july 9/WITH SILVER UP 5 CENTS: ANOTHER BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 847,000 OZ ADDED TO INVENTORY/INVENTORY RESTS AT 825.151 MILLION OZ/
JULY 6/WITH SILVER DOWN 2 CENTS/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 324.305 MILLION OZ/
JULY 5/WITH SILVER UP 6 CENTS, A GOOD CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 470,000 OZ/INVENTORY RESTS AT 324.305 MILLION OZ/ FOR THE PAST 10 TRADING DAYS, SILVER INVENTORY HAS ADVANCED BY 4.945 MILLION OZ WITH A LOSS OF 33 CENTS/PLEASE COMPARE THIS WITH THE GLD.
JULY 3/WITH SILVER UP 17 CENTS, A HUGE DEPOSIT OF 1.37 MILLION OZ ADDED TO THE SLV/INVENTORY RESTS AT 323.835 MILLION OZ.
JULY 2/WITH SILVER DOWN 31 CENTS/A HUGE 2.070 MILLION OZ DEPOSIT AT THE SLV/INVENTORY RESTS AT 322.465 MILLION OZ/
AUGUST 17/2018:
Inventory 329.104 MILLION OZ
6 Month MM GOFO 1.92/ and libor 6 month duration 2.51
Indicative gold forward offer rate for a 6 month duration/calculation:
G0FO+ 1.92%
libor 2.51 FOR 6 MONTHS/
GOLD LENDING RATE: .59%
XXXXXXXX
12 Month MM GOFO
+ 2.44%
LIBOR FOR 12 MONTH DURATION: 2.81
GOFO = LIBOR – GOLD LENDING RATE
GOLD LENDING RATE = +.37
end
Major gold/silver trading /commentaries for FRIDAY
GOLDCORE/BLOG/MARK O’BYRNE.
This Week’s Golden Nuggets
News, Market Updates and Videos You May Have Missed
As it’s Friday we are bringing you our weekly digest of the news, market updates, charts and videos that caught our eye this week.
We are also giving you a link to our most recent episode of the Goldnomics Podcast – Jim Rogers on Gold, Silver & Surviving the Coming Crash (Episode 7). We have been getting some great feedback on this and our previous episodes of our podcast, so why not check out one or two episodes this weekend.
Market Updates This Week
Gold And Silver Prices Fall Sharply To Near 2 Year Lows Despite Strong Demand In Turkey
London House Prices Fall At Fastest Rate Since Height Of Financial Crisis
Financial Crisis In Turkey To Trigger “Wider Calamity In Global Markets”
Videos of the Week

Source: Bloomberg and US Global Investors via GoldSeek

Source: Bloomberg and US Global Investors via GoldSeek

Source: Bloomberg

Source: Bloomberg
Gold and Silver Bullion – News and Commentary
Gold inches up, but set for biggest weekly fall in 15 months (Reuters.com)
Gold recovers early lost ground to fresh 19-month low, lacks follow-through (FXStreet.com)
Paulson keeps stake in gold investments during second-quarter: filing (Reuters.com)
Russia Leaves U.S. Debt Hoard Intact After $81 Billion Retreat (Bloomberg.com)
RBS was selling ‘total garbage’ in lead-up to financial crisis, documents show (IrishExaminer.com)
George Washington gold coin sells for $1.7 million | August 16, 2018 (Reuters.com)

Source: Bloomberg and US Global Investors
It’s Time for Contrarians to Get Bullish on Gold (GoldSeek.com)
How much lower can bitcoin and the crypto sector fall? (MoneyWeek.com)
Trump’s funny math on tariffs and the debt (MarketWatch.com)
Trump’s report card: Good marks for jobs, but other subjects need improvement (MarketWatch.com)
Four simple things you should do to succeed in stock markets (StansBerryChurcHouse.com)
Listen on SoundCloud , Blubrry & iTunes. Watch on YouTube below
16 Aug: USD 1,179.65, GBP 928.38 & EUR 1,037.74 per ounce
15 Aug: USD 1,186.70, GBP 933.10 & EUR 1,047.74 per ounce
14 Aug: USD 1,195.30, GBP 935.32 & EUR 1,049.11 per ounce
13 Aug: USD 1,204.40, GBP 944.85 & EUR 1,058.19 per ounce
10 Aug: USD 1,211.65, GBP 947.87 & EUR 1,056.44 per ounce
09 Aug: USD 1,215.50, GBP 944.08 & EUR 1,048.13 per ounce
Silver Prices (LBMA)
16 Aug: USD 14.61, GBP 11.51 & EUR 12.85 per ounce
15 Aug: USD 14.83, GBP 11.66 & EUR 13.10 per ounce
14 Aug: USD 15.04, GBP 11.77 & EUR 13.18 per ounce
13 Aug: USD 15.18, GBP 11.91 & EUR 13.35 per ounce
10 Aug: USD 15.37, GBP 12.04 & EUR 13.41 per ounce
09 Aug: USD 15.48, GBP 12.01 & EUR 13.35 per ounce
Recent Market Updates
– Gold And Silver Prices Fall 1.6% and 4.3% To Near 2 Year Lows
– London House Prices Fall At Fastest Annual Rate Since Height Of Financial Crisis
– Jim Rogers on Gold, Silver, Bitcoin and Blockchain’s “Spectacular Future”
– This Week’s Golden Nuggets
– The Stock Market is Stretched to Double Tech-Bubble Extremes
– Jim Rogers and the World’s New Reserve Currency
– Gold—Even at its Lowest Levels in 2018—is Behaving Just as Prescribed
– Jim Rogers – Making China Great Again! (Video)
– This Week’s Golden Nuggets
– Gold to Enter New Bull Market – Charles Nenner
– Here’s Where the Next Crisis Starts
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:
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:
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
|
The following is self explanatory
(courtesy GATA/Chris Powell and Harvey Organ)
GATA asks bank regulator to check risks of gold
futures maneuver
Submitted by cpowell on Sun, 2018-06-10 16:17. Section: Daily Dispatches
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
Finally, they replied and it was a complete brush off
(courtesy zerohedge)
Currency comptroller brushes off GATA’s inquiry on
gold, silver EFPs
Submitted by cpowell on Fri, 2018-08-10 15:37. Section: Daily Dispatches
11:35a ET Friday, August 10, 2018
Dear Friend of GATA and Gold:
The U.S. comptroller of the currency, a bank regulator, has declined GATA’s request to inquire into the strange explosion of the use of the emergency procedure of “exchange for physicals” in the settlement by banks of the gold and silver futures contracts they have sold on the New York Commodities Exchange.
Your secretary/treasurer and GATA’s consultant about the Comex, Harvey Organ, wrote to the comptroller, James M. Otting, on May 5, calling attention to the recent enormous use of EFPs, which implies derivatives risks being undertaken by U.S. banks that could cause the banks to fail:
http://www.gata.org/node/18303
“Our concern is that your office may not be aware of large unreported derivative exposure by banks,” GATA wrote.
As months passed without any acknowledgment from the comptroller’s office, your secretary/treasurer appealed to his U.S. representative, John B. Larson, D-Connecticut, to ask the comptroller’s office to reply. The congressman’s office made a second inquiry on Monday this week and today the comptroller’s office provided Larson with a copy of a reply written and mailed Wednesday.
The comptroller’s reply, signed by the deputy comptroller for public affairs, Bryan Hubbard, said only that the comptroller’s office has “dedicated examiners” at the largest banks who “continuously evaluate the credit, market, operational, reputation, and compliance risks of bank trading and derivative activities.”
The reply did not say anything about the use of the “exchange for physicals” procedure for settling futures contracts. That is, the reply was a begrudged brushoff and GATA’s letter would have been ignored completely if not for Representative Larson’s repeated intervention.
Of course GATA hardly expected a conscientious reply to its letter, the comptroller’s office being not an independent regulator but part of the Treasury Department, whose mandate includes administration of the Gold Reserve Act of 1934, which, as amended in the 1970s, authorizes the department’s Exchange Stabilization Fund to secretly intervene in and rig any market in the world, directly or through intermediaries:
https://www.treasury.gov/resource-center/international/ESF/Pages/esf-ind…
But there’s always value in demonstrating government’s lack of candor about what it is doing, especially in regard to the monetary metals.
A PDF copy of the reply from the comptroller’s office is posted at GATA’s internet site here:
http://www.gata.org/files/ComptrollerOfCurrencyReply-08-08-2018.pdf
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
END
Goldcore notes that gold’s fall in price may be official invention by the bankers and the world’s financial system may be showing signs of cracking up
(courtesy Chris Powell/Goldcore)
GoldCore: Gold’s counterintuitive fall may be official intervention
Submitted by cpowell on Thu, 2018-08-16 22:11. Section: Daily Dispatches
6:14p ET Thursday, August 16, 2018
Dear Friend of GATA and Gold:
GoldCore’s daily market analysis today cites GATA in acknowledging the possibility that gold’s counterintuitive crash as the world financial system shows signs of cracking up has been caused by surreptitious intervention in the gold futures market by central banks struggling to save the system against market forces. GoldCore’s analysis is headlined “Gold and Silver Prices Fall Sharply to Near 2-Year Lows Despite Strong Demand In Turkey” and it’s posted here:
https://news.goldcore.com/us/gold-blog/gold-and-silver-prices-fall-1-6-a…
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
END
This has zero chance of happening: Keith Weiner is advocating a bond issuance where interest is paid in gold
(Keith Weiner/GATA)
Keith Weiner: Bond paying interest in gold would confirm metal’s role as money
Submitted by cpowell on Thu, 2018-08-16 22:41. Section: Daily Dispatches
6:44p ET Thursday, August 16, 2018
Dear Friend of GATA and Gold:
Keith Weiner, CEO of Monetary Metals in Scottsdale, Arizona, a sort of gold banking house that seeks to increase gold’s use in finance, today appeals for signatures on a petition to Nevada’s legislature in support of a proposal to authorize state government to issue bonds with interest payable in gold.
Such a state-issued bond, Weiner notes, would confirm gold’s role as money even as respectable people don’t want to think of it that way anymore.
It’s hard to see why state government would object to the idea now that the gold price is getting smashed every day, reducing the burden of gold-denominated debt. Of course a rising gold price might do a lot more to reiterate gold’s ancient function as money. But for that to happen the world may have to wait for surreptitious intervention in the gold market by the Bank for International Settlements to diminish. Instead it increased 17 percent in July:
Weiner’s appeal is headlined “Who Would Invest in a Gold Bond?” and it’s posted at the Monetary Metals internet site here:
https://monetary-metals.com/who-would-invest-in-a-gold-bond/
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org\
END
At 3;30 pm the CME releases its COT which gives position levels of our major players
It does not give levels of obligations held by the longs and shorts via the EFP;s
for that reason, the value of this report is very limited at best
| Gold COT Report – Futures | ||||||
| Large Speculators | Commercial | Total | ||||
| Long | Short | Spreading | Long | Short | Long | Short |
| 211,779 | 215,467 | 54,392 | 164,195 | 171,545 | 430,366 | 441,404 |
| Change from Prior Reporting Period | ||||||
| 3,487 | 19,863 | 5,815 | 9,992 | -8,267 | 19,294 | 17,411 |
| Traders | ||||||
| 162 | 115 | 87 | 50 | 44 | 254 | 206 |
| Small Speculators | © GoldSeek.com | |||||
| Long | Short | Open Interest | ||||
| 46,373 | 35,335 | 476,739 | ||||
| -2,029 | -146 | 17,265 | ||||
| non reportable positions | Change from the previous reporting period | |||||
| COT Gold Report – Positions as of | Tuesday, August 14, 2018 | |||||
our large speculators
those large speculators who have been long in gold added 3487 contracts to their long side
those large speculators who have been short in gold added 19,863 contracts to their short side
and the longs almost equal the shorts for the first time in quite some time.
Our commercials
those commercials who are long in gold added 9992 contracts to their long side
those commercials who are short in gold covered (transferred) 8267 contracts from their short side
Our small speculators
those small specs who have been long in gold pitched (transferred) 2029 contracts from their long side
those small specs who have been short in gold covered (transferred) 146 contracts from their short side
and now the silver cot
| Silver COT Report: Futures | |||||
| Large Speculators | Commercial | ||||
| Long | Short | Spreading | Long | Short | |
| 93,346 | 96,182 | 28,512 | 84,657 | 97,033 | |
| 330 | 7,507 | -569 | 5,167 | -4,575 | |
| Traders | |||||
| 105 | 72 | 55 | 45 | 37 | |
| Small Speculators | Open Interest | Total | |||
| Long | Short | 240,038 | Long | Short | |
| 33,523 | 18,311 | 206,515 | 221,727 | ||
| -330 | 2,235 | 4,598 | 4,928 | 2,363 | |
| non reportable positions | Positions as of: | 179 | 142 | ||
| Tuesday, August 14, 2018 | © SilverSeek.com | ||||
our large speculators
those large speculators who have been long in silver added 330 contracts to their long side
those large speculators who have been short in silver added 7507 contracts to their short side.
Our commercials
those commercials who have been long in silver added 5167 contracts to their long side
those commercials who have been short in silver covered (pitched) 4575 contacts from their short side
Our small speculators
those small specs who have been long in silver pitched (transferred) 330 contracts from their long side
those small specs who have been short in silver added 2235 contracts to its short side.
Conclusions:
it is very unusual to see the large specs having almost an identical long and short in both gold and silver
what a manipulation.
end
Your early FRIDAY morning currency, Asian stock market results, important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight/9 AM EST
i) Chinese yuan vs USA dollar/CLOSED UP TO 6.8826/HUGE DEVALUATION FOR THE PAST FOUR WEEKS STOPS/CHINESE COMING TO USA FOR TRADE TALKS //OFFSHORE YUAN: 6.8613 /shanghai bourse CLOSED DOWN 36.23 POINTS OR 1.34% /HANG SANG CLOSED UP 113.35 POINTS OR 0.42%
2. Nikkei closed UP 113.35 POINTS OR 0.42%/USA: YEN FALLS TO 110.45/
3. Europe stocks OPENED ALL RED
//USA dollar index FALLS TO 96.44/Euro RISES TO 1.1393
3b Japan 10 year bond yield: REMAINS AT . +.10/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 110.87/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET
3c Nikkei now JUST BELOW 17,000
3d USA/Yen rate now well below the important 120 barrier this morning
3e WTI:: 65.80 and Brent: 72.05
3f Gold UP/JAPANESE Yen DOWN/ CHINESE YUAN UP
3g Japan is to buy the equivalent of 108 billion uSA dollars worth of bond per month or $1.3 trillion. Japan’s GDP equals 5 trillion usa./“HELICOPTER MONEY” OFF THE TABLE FOR NOW /REVERSE OPERATION TWIST ON THE BONDS: PURCHASE OF LONG BONDS AND SELLING THE SHORT END
Japan to buy 100% of all new Japanese debt and by 2018 they will have 25% of all Japanese debt. Fifty percent of Japanese budget financed with debt.
3h Oil UP for WTI and UP FOR Brent this morning
3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO +.300%/Italian 10 yr bond yield UP to 3.14% /SPAIN 10 YR BOND YIELD UP TO 1.44%
3j Greek 10 year bond yield RISES TO : 4.34
3k Gold at $1177.40silver at:14.64 7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50
3l USA vs Russian rouble; (Russian rouble UP 27 /100 in roubles/dollar) 67.03
3m oil into the 65 dollar handle for WTI and 72 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 110.45 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 0.9956 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1343 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.
3p BRITAIN VOTES AFFIRMATIVE BREXIT/LOWER PARLIAMENT APPROVES BREXIT COMMENCEMENT/ARTICLE 50 COMMENCES MARCH 29/2017
3r the 10 Year German bund now POSITIVE territory with the 10 year FALLING to +0.30%
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 2.85% early this morning (THIS IS DEADLY TO ALL MARKETS). Thirty year rate at 3.01%
5. Details Ransquawk, Bloomberg, Deutsche bank/Jim Reid.
Relief rally in the Turkish lira…no developments at all…
(courtesy Jim Reid/Bloomberg/Deutsche bank/zero hedge)
Selling Returns As Turkish Lira Suddenly
Tumbles, China Stocks Slide To New 2 Year Low
A sense of “risk off” has returned to the the market, with 10Y yields sliding, the dollar rebounding from session lows and the Turkish Lira resuming its plunge, renewing concerns about emerging market contagion, leading to a “red return” across global market monitors, following yesterday’s torrid surge in the S&P500.
The USDTRY surged over 8% on Friday, infecting risk sentiment in a generally subdued and low volume session.
There wasn’t one specific catalyst for the latest sharp selloff, although some cited the latest credit measures to help domestic corporates as potentially increasing pressure on banking system.
In its latest steps to shield the economy and mitigate the impact of “economic attacks on our country”, Albayrak’s finance ministry on Friday said that non-financial companies’ credit worthiness wouldn’t be affected by failure to service debt amid the recent rout. Credit lines to firms would remain open, and pricing and repayment periods would be kept flexible, it said. The finance ministry also said that:
- It would limit breaches due to lira decline in loans won’t be taken into consideration; banks won’t demand loan closings in such instances
- Banks won’t demand additional collateral for corporate loans whose collateral value have declined due to lira depreciation
- Force majeure may be declared on loan repayment delays, dud cheques and protested bills. Thus, companies’ access to credit won’t be impaired
In other words, the government is giving banks a blank slate to continue business as usual even if they are on the verge of collapse, not only intensifying the deterioration of the economy, but breaking down traditional risk signaling pathways.
Another reason behind today’s slide was potential risk-shedding before week long Turkish public holiday and upcoming S&P comments on Turkish rating.
Overnight, President Trump stated that Turkey has taken advantage of US for many years and are now holding US pastor, while he added the US will not pay anything for the release an innocent man but are cutting back on Turkey. Separately, a report in Middle East Eye said that Turkey is ready to release Pastor Brunson but the US is offering nothing in return.
TRY traders are also spooked as we may see the the outcome of the appeal court’s consideration of Pastor Brunson’s release request today: it is expected some time this week after the second criminal court rejected the request on Wednesday. On Thursday, Treasury Secretary Mnuchin also threatened more sanctions overnight over Brunson’s ongoing detention, suggesting further headline risk for US-Turkey tensions. “It still looks like we’re headed to more conflict,” Kathy Jones, chief fixed-income strategist at Charles Schwab Inc. “Neither side seems to be backing down yet.”
Meanwhile, that other closely watched FX pair, the USDCNH briefly pushed lower on reports that the U.S. will pressure for a stronger yuan, however the move was s not sustained given similar reports from WSJ yesterday; and as a result the offshore Yuan was trading around 6.87, just fractionally lower than the Thursday close. Also notable, the offshore yuan interbank rates (Hibors) rose sharply in delayed response to yesterday’s liquidity move via forwards.
European and U.S. equity futures grind lower, in cash equities the bank and auto sectors underperform in typical risk-off manner. S&P index futures were little changed as investors await further developments in the renewed dialog between the U.S. and China. Attention will shift later to leading indicators and University of Michigan Confidence Index, while the only big company to report earnings is Deere & Co. According to Bloomberg, Department-store stocks will be in focus after Nordstrom boosted forecasts and surged after hours, as well as chip stocks after Nvidia and Applied Materials disappointed investors with their outlook.
In Europe, tech shares weighed on the Stoxx Europe 600 Index after disappointing results from U.S. chipmakers including Nvidia and Applied Materials. And while most Asian stocks advanced, Chinese shares slid again as U.S. President Donald Trump prodded Beijing to offer more at the bargaining table in their first major negotiation planned in more than two months. The Shanghai Composite tumbled to a new two year low.
Emerging-market stocks were relatively steady following a seven-session sell-off that brought them to the brink of a bear market, although if the TRY plunge continues contagion may re-emerge: as noted above, the market convulsions were again on show on Friday, as the lira slid to as low as 6.32 per dollar, bringing its losses for the year to more than 40%.
Today’s instability followed news of a possible breakthrough in the U.S.-China trade dispute which brought some calm to markets whipsawed by the brewing financial crisis in Turkey and renewed angst over technology stocks. Traders are catching their breath after a sell-off in commodities and emerging-market stocks, which are on the brink of their worst weekly performance since the February volatility blow-up, signaling the trade war remains the wildcard for many markets.
“I don’t think we’re quite out of the woods yet,” Marcus Miholich, a managing director at State Street Global Advisors Ltd., told Bloomberg TV in Sydney. “Investors have definitely taken note of these tensions and have reallocated into more defensive sectors and defensive names. Given we don’t seem to have the light at the end of the tunnel just yet, that will continue.”
In other geopolitical news, US administration official said President Trump and Russian President Putin agreed in principle that Iran should exit Syria, although the official added that Russia sees this as a difficult task. US Pentagon report stated China has been expanding fleet of long-range bombers during last 3 years and are ‘likely’ training for missions which target the US.
The Bloomberg Dollar Spot Index headed for a third straight week of gains, and rebounded from session lows on Friday as the Turkish Lira slumped. The euro hit a one-week high versus the Swiss franc as risk sentiment keeps improving and filled option-related supply above 1.14 versus the greenback.
The euro extended its advance and gained as much as 0.4% to touch 1.1419 high as stops above 1.14 were triggered, before falling back below that handle. Yen and New Zealand dollars led gains against the greenback, with many short-term accounts citing yuan performance as a driver for the moves; USD/JPY fell as much as 0.4% to 110.49 low with the pair continuing to consolidate between 110-111. The pound erased gains as leveraged supply near highs absorbed buying pressure; the currency headed for its sixth weekly loss.
Treasuries extend gains as the lira weakens, with the UST curve led by 10-year. The yield on 10-year TSYs dropped 1 bp to 2.85%, the lowest in more than four weeks. Italy’s 10-year yield rose less than one basis point to 3.12%.
Elsewhere, oil climbed despite a surprise gain in U.S. crude stockpiles, while zinc fell, heading for its worst weekly performance since 2011. Oil prices are up this Friday but are still set to end the week in the red for the third week in a row. WTI and Brent are both up ~0.25% on the day as energy specific news flow remains light. In the metals scope, Gold is up marginally off the back of USD weakness and testing the USD1180/OZ level to the upside, but is still set for its largest weekly fall in 15 months. Precious metals are slightly in the green with all of silver (+0.2%), platinum (+0.4%)and palladium (+0.1%) up on the day.
Expected data include Conference Board U.S. Leading Index and University of Michigan Consumer Sentiment Index. Deere reports earnings.
Market Snapshot
- S&P 500 futures down 0.1% to 2,841.25
- STOXX Europe 600 up 0.06% to 381.65
- MXAP up 0.5% to 161.95
- MXAPJ up 0.5% to 521.93
- Nikkei up 0.4% to 22,270.38
- Topix up 0.6% to 1,697.53
- Hang Seng Index up 0.4% to 27,213.41
- Shanghai Composite down 1.3% to 2,668.97
- Sensex up 0.8% to 37,952.37
- Australia S&P/ASX 200 up 0.2% to 6,339.23
- Kospi up 0.3% to 2,247.05
- German 10Y yield fell 1.5 bps to 0.305%
- Euro up 0.3% to $1.1412
- Italian 10Y yield fell 5.1 bps to 2.844%
- Spanish 10Y yield fell 0.5 bps to 1.44%
- Brent futures up 0.5% to $71.80/bbl
- Gold spot up 0.3% to $1,177.61
- U.S. Dollar Index down 0.3% to 96.33
Top Headlines from Bloomberg
- President Donald Trump prodded China to offer more at the bargaining table as the two countries prepared for their first major negotiation in more than two months in an effort to head off an all-out trade war
- U.S. Treasury Department will seek to pressure China to lift the value of yuan in coming trade talks, NYT reports, citing unidentified person briefed on the plans
- In government offices and think tanks, universities and state-run newsrooms, there is an urgent debate underway about what many in Beijing see as the hidden motive for Washington’s escalating trade war against President Xi Jinping’s government: A grand strategy, devised and led by Trump, to thwart China’s rise as a global power
- Australian central bank chief Philip Lowe said he’d still like to see the nation’s currency weaken further and sees interest rates remaining at a record low “for a while yet”
- Oil headed for the longest run of weekly declines in three years, dragged down by everything from an emerging-market rout to rising global supplies and lingering concerns over a spat between the world’s biggest economies
- Investors withdrew money from a range of asset classes over the past week analysts at Jefferies write in research note, citing EPFR Global data for week ended Aug. 16.
- NYT: U.S. Treasury will seek to pressure China to lift the value of yuan in coming trade talks, according to people familiar
- Fed’s Powell speech on monetary policy at Jackson Hole confirmed for 10 a.m. New York time on Aug. 24; full agenda to be released at 8 p.m. New York time on Aug. 23.
- Eurozone July CPI unrevised y/y at 2.1%; Core CPI unrevised at 1.1%
- China People’s Daily: China has ‘big room’ for macro-economic control; will take more proactive policies to stabilize trade, including pushing forward signing of free-trade agreements
- Mnuchin says Turkey faces more sanctions if pastor not released
Asian equity markets were mostly higher as the region tracked the performance on Wall St where all majors gained as sentiment was buoyed by trade optimism from the announcement of upcoming US-China trade talks. ASX 200 (+0.1%) and Nikkei 225 (+0.4%) were both higher although the former somewhat lagged after having stalled at fresh highs last seen in over a decade, while gains in Japanese exporters were contained by a stable currency. Hang Seng (+0.4%) and Shanghai Comp. (-1.3%) both initially conformed to the positive risk tone amid the trade-related hopes, continued PBoC liquidity efforts and as Hong Kong-heavyweight Tencent also rebounded from post-earnings losses, although the Shanghai Comp. eventually gave back its gains and then some, as sentiment deteriorated across the mainland. Finally, 10yr JGBs saw mild gains as prices rebounded from the prior day’s weakness and with the BoJ also in the market under its bond buying programme. PBoC injected CNY 90bln via 7-day reverse repos for a net weekly injection of CNY 130bln vs. neutral last week.
Top Asian News
- Turkey-Exposed Cos. May Be Back in Focus After Mnuchin Comments
- U.S. Said to Seek to Pressure China to Lift Yuan in Talks: NYT
- Interest Rates in China Below the U.S. Level Risks Outflows
- Apple Supplier Luxshare Said to Plan Camera Module IPO: Nikkei
European equities have started the day marginally lower (Euro Stoxx 50 -0.3%) as we approach the week’s end. The AEX is currently the underperforming bourse, with losses lead by Vopak (-7.0%) (whom are also at the foot of the Stoxx 600) after missing expectations on all of net profit, EBITDA and revenue. AP Moeller Maersk (+4.7%) also reported earnings, wherein revenues came in above least years results. The co. also confirmed source reports it is looking to spin-off it’s drilling unit and list it on the NASDAQ so as to focus on their transport business. Air France appointed the Ex-COO of Air Canada last night, Ben Smith, as CEO. Despite opening higher Air France shares reversed course amid protests from French unions about the Canadian’s appointment, and are currently down 4.0%.
Top European News
- Tycoon Deripaska Weighs Moving Sanctioned Companies to Russia
- Barclays Scraps Long Stance on Italy Bonds After Latest Selloff
- Draghi’s Richer Toolbox Keeps ECB Calm as Turkey and Italy Rage
- Air France-KLM’s New CEO Faces Immediate Union Threat of Strike
- Atlantia Gains on Report of Talks to Pay Fine on Bridge Collapse
In FX, the dollar index saw some downside deviation from the relatively tight range around 96.500 that has been prevalent since the Try-led EM exodus subsided amidst reports (albeit dated) that the US will urge China to revalue the Yuan during trade negotiations scheduled for next week. The index dipped just under 96.300 amidst broad Usd declines, but still restrained trade overall. TRY/YUAN – The Lira maintained enough recovery momentum to trade a fraction above 5.7500 vs the Dollar, but stopped short of Thursday’s circa 5.7000 high that is very close to a key Fib level and in volatile conditions reversed to hit 6.0000+ levels. Meanwhile, the PBoC halted a run of daily Cny depreciations via the official mid-point fix to leave the offshore Cnh off recent lows and also bolstered by the provision of 7 day liquidity. NZD/AUD – Highlighting the considerably improved risk tone, the Kiwi is making a more concerted effort to form a base at 0.6600 vs its US counterpart, while the Aud has extended above 0.7250 again, though still unable to reach 0.7300 with technical resistance just a head of the big figure and the RBA reiterating no rush or rationale to raise rates anytime soon (Governor Low overnight and message rammed home by Ellis earlier today). EUR/JPY – The next best G10s, as the single currency revisits 1.1400 vs the Greenback where big option expiries run off today (1.9 bn from the big figure to 1.1410) and Usd/Jpy retreats from 111.00 again and also eyes hefty expiry interest, with 2.2 bn at the110.50 strike.
In commodities, oil prices are up this Friday but are still set to end the week in the red for the third week in a row. WTI and Brent are both up ~0.25% on the day as energy specific news flow remains light. In the metals scope, Gold is up marginally off the back of USD weakness and testing the USD1180/OZ level to the upside, but is still set for its largest weekly fall in 15 months. Precious metals are slightly in the green with all of silver (+0.2%), platinum (+0.4%) and palladium (+0.1%) up on the day.
Looking at the day ahead, we end the week with the July leading index and the preliminary August University of Michigan survey.
US Event Calendar
- 10am: Leading Index, est. 0.4%, prior 0.5%
- 10am: U. of Mich. Sentiment, est. 98, prior 97.9; Current Conditions, prior 114.4; Expectations, prior 87.3
DB’s Jim Reid concludes the overnight wrap
Every time it gets a knock it has tended to wobble a little, find its feet, shake off the blow and then power ahead. After the weakness on Wednesday the S&P 500 rallied +0.79% yesterday and is now back to only 1.1% off the record highs again. Meanwhile the VIX – which spiked to 16.86 late morning on Wednesday – closed at 13.45 last night. We’ve had quite a few spikes in equity vol this year and whilst we’ve never returned fully back to the lowest end of the range we saw prior to the early February VIX melt down period, we have repeatedly retraced back most of the way prior to each fresh spike coming along.
In a world of much higher macro uncertainty, earnings have perhaps played a big part in keeping the S&P 500 in good health (perhaps a similar trend to marriage). Yesterday it was the turn of US retail to shine with Walmart up +9.33% after earnings showed that comparable sales rose 4.5% in the three months ending in July, more than double the consensus forecasts. Grocery sales rose the most in 9 years and they also boosted their full-year forecasts for comparable sales and adjusted profit.
From groceries to Turkey and in this ongoing story the highlights over the last 24 hours has been a continued rally in the Lira (+1.89%) yesterday, an investor call from the finance minister and comments from treasury secretary Mnuchin that Turkey faces fresh sanctions if they don’t release pastor Brunson soon. The sanctions headlines took the shine off the Lira and showed that the saga still has a long way to go. This came after the call with investors that reiterated there are no plans for capital controls or to call on the IMF. The ministry talked up the banking sector and an acknowledgement of the need for fiscal discipline. There was a small rally in the Lira during the call which indicated that there were no nasty surprises.
Meanwhile on trade, President Trump told his cabinet members yesterday that “we’re talking to China….they just are not able to give us an agreement that is acceptable, so we’re not going to do any deal until we get one that’s fair to our country” (per Bloomberg). So lots bubbling along before the formal trade talks resume from 22 August. Elsewhere Reuters noted the US trade representative Lighthizer expressed hope that a revised NAFTA trade deal with Mexico could be reached in the next few days.
This morning in Asia, equities are trading modestly higher following the positive leads from the US. Across the region, the Nikkei (+0.44%), Kospi (+0.32%) and Hang Seng (+0.50%) are all up while Chinese bourses are down c0.5% as we type. Meanwhile futures on the S&P are pointing to a marginally positive start while the Yuan and Lira are both little changed.
Now turning back to yesterday, where equities started on a positive footing as trade tensions eased on news of further trade talks between the US and China. Then the improved sentiment gathered pace with a rebound in commodities and sound corporate earnings as noted earlier. In the US, the DOW rallied +1.58% with the help of trade bellwethers such as Caterpillar (+3.2%) and Boeing (+4.3%), while the S&P (+0.79%) and Nasdaq (+0.42%) also advanced. Back in Europe, the Stoxx 600 firmed for the first time in five days (+0.52%) with all sectors in the black while the DAX (+0.61%) and FTSE (+0.78%) also rose. The exception was Italy’s FTSE MIB which fell -1.83% to the lowest since April 2017, in part playing catch up as trading resumed post a holiday Wednesday while the motorway operator (Atlantia) for the recently collapsed bridge tumbled -22.3%.
Meanwhile core government bonds softened along with the risk on tone, with 10y bond yields up 1-2bp (UST +0.4bp; Bunds & Gilts +1.5bp) while Italian BTPs outperformed (-5bp). Domestic Turkish bonds yields remained volatile with 5y and 10y yields up 63bp and 66bp respectively. Turning to currencies, the US dollar index softened for the second day (-0.05%) while the Euro and Sterling gained +0.28% and +0.15% respectively. Meanwhile commodities staged a broad based recovery to recoup most of Wednesday’s losses, with LME lead (+5.86%), Zinc (+4.0%) and Copper (+2.36%) all up. Elsewhere WTI oil nudged up for the first time in four days to $65.46/bbl (+0.69%).
Before we look at the data our US economists have published a detailed update on the inflation outlook. In the near-term, they expect goods inflation to rise further, supporting the broader core inflation gauge. In the medium-term, the macro backdrop supports modestly higher inflation as Phillips curve effects should dominate some dollar headwinds even without accounting for potential non-linearities in the former. Overall the team continues to forecast core PCE and core CPI inflation at 2.3% and 2.5% for end-2019, respectively. If the data evolve as they anticipate, more Fed officials should support taking a restrictive stance. Refer to their note for details
Yesterday’s economic data was a bit mixed. In the US, initial and continuing jobless claims both ticked lower to 212k and 1,721k respectively. Both series remain extremely healthy around their lowest levels in 35 years. While July building permits rose, actual housing starts surprisingly fell, probably reflecting reduced activity in the western US amid ongoing wildfires. The August Philadelphia Fed Business Outlook surprisingly dropped to 11.9 (a positive value indicates expansion), its weakest level since 2016. After yesterday’s strong Empire State manufacturing survey, the picture for this month’s ISM Manufacturing PMI is somewhat muddled. Despite the headline softness however, forward looking subsections looked strong, especially capital expenditure expectations. Wage and inflation expectations remained healthy as well, supporting our economists’ view for further robust US growth and continued Fed rate hikes. In Europe, the June trade balance printed at a seasonally adjusted €16.7 billion, its lowest level since January last year, potentially signalling less robust global demand. In the UK, July retail sales rose 0.7% mom, a more robust pace than expected,though possibly attributable to warm weather and the World Cup rather than stronger fundamentals.
Looking at the day ahead, in Europe, we get June current account data and the final July CPI prints for the Euro area (1.1% yoy expected). In the US, we end the week with the July leading index and the preliminary August University of Michigan survey.
END
3. ASIAN AFFAIRS
i)FRIDAY MORNING/THURSDAY NIGHT: Shanghai closed DOWN 36.23 POINTS OR 1.34% /Hang Sang CLOSED UP 113.35 POINTS OR 0.42%/ / The Nikkei closed UP 78.34 POINTS OR 0.35%/Australia’s all ordinaires CLOSED UP 0.21% /Chinese yuan (ONSHORE) closed UP at 6.8826 AS POBC HALTS ITS HUGE DEVALUATION /DELEGATION COMING TO THE USA TO SEE TRUMP/Oil UP to 65.80 dollars per barrel for WTI and 72.05 for Brent. Stocks in Europe OPENED DEEPLY IN THE RED //. ONSHORE YUAN CLOSED UP AT 6.8826 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8613: HUGE DEVALUATION/PAST SEVERAL DAYS STOPS TRADE TALKS WILL RESUME IN THE USA : /ONSHORE YUAN TRADING STRONGER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED
3 a NORTH KOREA/USA
North Korea/South Korea/USA/China
3 b JAPAN AFFAIRS
c) REPORT ON CHINA/HONG KONG
The pentagon warns that China with its long range bombers are training for a strike against the uSA. And the USA is facilitating gold purchases by China onto their soil?…
(courtesy zerohedge)
China’s Long Range Bombers “Likely Training For
Strikes” Against The US, Pentagon Warns
A new Pentagon report has sounded the alarm over China’s expanding military reach and says the rival to American power is increasing its ability to send bombers further afield while “likely training for strikes” against the United States and its allies.
The warning is contained in an annual Pentagon report prepared for Congress called Military and Security Developments Involving The People’s Republic of China 2018, which further notes a defense spending estimate of $190 billion — a third that of the United States — which has in part gone toward the People’s Liberation Army (PLA) “undergoing the most comprehensive restructure in its history”.
The report comes amidst heightened trade tensions and concerns that China is attempting to gobble up territory in international waters through its militarizing artificial islands in the South China Sea.
“Over the last three years, the PLA has rapidly expanded its overwater bomber operating areas, gaining experience in critical maritime regions and likely training for strikes against U.S. and allied targets,” the report reads.
In terms of potential targeting, this may demonstrate the “capability to strike US and allied forces and military bases in the western Pacific Ocean, including Guam,” the report adds.
However while generally outlining ways that China is establishing itself as an unrivaled regional power, such as through its Belt and Road Initiative (BRI), the report notes that it’s not clear what message Beijing is projecting by carrying out the flights “beyond a demonstration of improved capabilities.”
The report projects that China’s military budget is likely to expand to $240 billion over the next decade, adding that “The purpose of these reforms is to create a more mobile, modular, lethal ground force capable of being the core of joint operations” that can “fight and win” against a major military power.
Notably the Pentagon’s annual report also highlights China’s growing space program “despite its public stance against the militarization of space” — something which likely factored into President Trump’s mid-June announcement that he would “immediately” establish a “space force” as an independent service branch of the Department of Defense.
The report says of the contentious issue of Taiwan, which is claimed by China but maintains de facto independent security ties with the US, that China “is likely preparing for a contingency to unify Taiwan with China by force”.
The assessment spells out China is ready to go to war to protect its claim over the island: “Should the United States intervene, China would try to delay effective intervention and seek victory in a high-intensity, limited war of short duration.”

Acknowledging the potential for rapid and worrisome escalation between the global powers, the Pentagon report stresses that the US “seeks a constructive and results-oriented relationship with China”.
As Reuters points out, “While Washington and Beijing maintain a military-to-military relationship aimed at containing tensions, this has been tested in recent months, notably in May when the Pentagon withdrew an invitation to China to join a multinational naval exercise.”
However, Washington and Beijing have kept communication channels open, despite a growing trade war, as a Chinese trade delegation is set to visit the US this month to initiate a new round of talks.
The Chinese delegation, reportedly to be led by vice-commerce minister Wang Shouwen plans to meet a group led by US Treasury undersecretary David Malpass amidst aggressive US tariffs on $50 billion worth of Chinese goods, and after Trump threatened tariffs on a further $200 billion worth of imports.
end
4. EUROPEAN AFFAIRS
6 .GLOBAL ISSUES
The total debt of all nations has risen to 238 trillion dollars a huge 30 trillion rise from 2016. The looming economic collapse will be upon us in short order
(courtesy Mac Slavo/SHTFPlan.com)
The Looming Economic Collapse: The $250 Trillion Dollar Worldwide Debt Crisis
Authored by Mac Slavo via SHTFplan.com,
As governments raise taxes to cope with their unending spending habits, people are increasingly being forced to supplement their own income with loans. And according to most financial experts, this debt problem is so big that it will usher in a global economic collapse of epic proportions.
According to the Institute of International Finance’s latest Global Debt Monitor, the amount of debt held in the world rose by the biggest amount in two years during the first quarter of 2018.It grew by $8 trillion to hit a new all-time high of $247 trillion, up from $238 trillion as of December 31, 2017. And that’s up by $30 trillion from the end of 2016.
Global debt is staggering to the point most of it will never be repaid and as governments continue their spending sprees and the debts keep mounting, the future of the economy looks bleak. There is more than enough economic data out there to show there could be an economic collapse and stock market crash in 2018. Bill Gross stated in 2017 that “our highly levered financial system is like a truckload of nitroglycerin on a bumpy road”. One wrong move and the whole thing could blow sky high, wrote the Epic Economist. Once this bubble pops, it will fling the globe into a financial crisis of epic proportions never before seen.
According to Financial Times, it is becoming clear that the global monetary policy is now caught in a debt trap of its own making. Continuing on the current monetary path is ineffective and increasingly dangerous. But any reversal also involves great risks. It stands to reason that the odds of another crisis blowing up will continue to rise. –Ready Nutrition
The Epic Economist also has a video out detailing how all of this came to pass. It’s easy enough to understand, yet most still can’t get past their own preconceived notions and biases to comprehend that this will be the fault of governments and those who continue to look to rulers or masters to solve their problems.
“It is all about taking money from us and transferring it into government pockets.And then, taking money from government pockets, and transferring it into the hands of the elite. It’s a game that’s been going on for generations and its time for the humanity to say that ‘enough is enough’.” -Epic Economist
The future of the global economy doesn’t look promising based on the vast amount of debt and wealth being transferred from people to their masters. We are living in economic slavery and until humanity understands that, the only other option is an economic crisis.
It comes as a bit of a surprise the infamous Keynesian economist Bernanke would express concerns over the government’s inability to decrease spending. But now that he has, will Americans heed the warning and protect themselves against the next financial crisis? –SHTFPlan
There are ways to prepare for a financial crisis, although an ongoing and global crash could complicate things for preppers. But there are still ways to prepare and an open and educated mind is step one. If you still believe the government and global elites have your best interests in mind, you probably also don’t anticipate a global economic crash, and therefore, are not going to prepare. For the rest of us, taking on a “prepper’s mindset” will give you the upper hand in any financial crisis.
“If we have learned one thing studying the history of disasters, it is this: those who are prepared have a better chance at survival than those who are not.” -Tess Pennington, author of The Prepper’s Blueprint
end
Canada
Canada reports a huge rise in consumer prices of 3.% year over year and these numbers are really higher as they disguise the true inflation rate. Strangely the loonie spiked higher on the news because the Bank of Canada governor mist raise rates fast against a slowing economy
(courtesy zerohedge)
Loonie Spikes As Canadian Consumer Prices Soar Most Since 2011
Canadian Consumer Prices soared 3.0% YoY in July – well above 2.5% expectations – and the highest inflation rate since 2011.
- Inflation for services in July was 3.2%, the fastest pace since 2008.
- Goods inflation was 2.8%.
Gasoline prices – up 0.8% in July and 25.4% from a year earlier – have also been a main contributor to the recent acceleration in prices. Excluding gasoline, inflation would be 2.2 percent in July.
Monthly inflation was up 0.5 percent in July, versus analyst expectations for a 0.1 percent gain. On a seasonally adjusted basis, inflation was also up 0.5 percent, the biggest increase since January.
As Bloomberg notes, the faster-than-expected gains will test Bank of Canada Governor Stephen Poloz’s resolve to raise interest rates gradually over the next year to avoid a disruption to the economy. Price gains have now reached the upper end of the central bank’s 1 percent to 3 percent inflation range.
And that has prompted an immediate reaction in the loonie – instant buying…
Finally, we note that there was little discernable effect of higher tariffs on consumer prices in July. Statistics Canada released a report on the estimated impacts of Canada’s tariffs on U.S. metal and consumer products and found there would only be a small overall increase — with no more than a decimal point increase to inflation over a limited period of time.
end
Richard Breslow, is one smart cookie: he points out the huge problems facing the globe this morning which is basically totally ignored e.g. the German bund at .30%, the huge fall in the Turkish lira and other emerging nation currencies
(courtesy Richard Breslow/zerohedge)
One Trader Rages “If Your Blood Isn’t Boiling” You’re Not Paying Attention
“If your blood is not boiling,” begins former fund manager and FX trader Richard Breslow, “it’s fine to cut out” he threatens as it seems market participant ‘centrally-planned conditioning-biased’ ignorance or perhaps just blind faith in BTFD because of PPT and Midterms has left the US equity market the lone pretender in a world of de-risking.
Via Bloomberg,
Or perhaps we just sleep-walk until a proper blow-up forces some sort of response.
Of course, if we are confronted with the accusation that we should have acted differently, we can always claim

I understand it’s a Friday in August. I get that people are claiming they’ve had a hard week and want to call it a day. It’s no surprise that weekend-position-aversion remains a problem for risk takers. But with so much going on, if traders can’t be inspired to trade and challenge the status quo, it is safe to conclude that markets remain well and truly broken…Maybe forever.

- the Turkish lira dropped as much as 7%,
- the Shanghai Composite closed at its lowest level since January 2016
- and German bunds are trading back below 30 basis points.
- The Governor of the RBA just said what every central banker wishes they could — that he encourages a weaker currency.
- The Malaysian ringgit is the latest Asian currency to experience the effects of slowing growth, sliding to the lowest in nine months.
- BTPs remain at levels the Italian government can’t afford as their equity markets continue to noticeably underperform their brethren.
- And U.S. equities are impervious to it all.
There’s a lot going on and traders need to ditch their base case that monetary policy will, at the end of the day, save all.
And the really dumb one, that calmer heads will ultimately prevail causing geopolitical and trade tensions to ease.
Did you ever think there would be such a systemic need for a new generation of aggressive hedge funds?
Another fatality of quantitative easing. Why stay up at night selling currency when you can just roll into the office at a decent hour and buy whatever the sovereign wealth funds are currently feasting on?
Incidentally, “base case” is now joining my list of banned expressions and words. It’s just commentator speak for I could be totally wrong but hope to be right somewhere down the line. And I’ll get back to you when it happens. While I’m at it, Purchasing Power Parity and the ground meat version of it are also out. It’s just a useless way into a misguided mean-reversion argument.
How appropriate as next week brings the 20th anniversary of when LTCM went hat-in-hand to banks. Make money, make money, lose it all. Sadly, another word in exile, “existential”, is due to return with great fanfare when the Italian government negotiates its budget with the EU.
Strictly off the record, bullies get their way until someone proves they can be stood up to. It may turn out that Erdogan is the unlikely bearer of that message.
end
Turkey
Fitch states that Turkey’s action are insufficient to restore their credibility. In essence they want the country to raise rates, something that they will not do
(courtesy zerohedge)
Fitch: Turkey’s Actions Are Insufficient To Restore Policy Credibility
To contain the historic plunge of its currency, this week Turkey unleashed an unprecedented barrage of interventions in its market, if not the economy, mostly focusing on crushing short sellers and making shorting the Lira by speculators prohibitively expensive. In fact just moments ago, the Turkish banking regulator launched yet another intervention:
- *TURKEY EXPANDS LIMITS ON FX SWAPS TO SOME LIRA FORWARDS
The one thing Turkey did not do, is despite vague promises of fiscal reform and monetary stabilization, it continues to refuse to do the one thing investors across the globe demand: raise rates and tighten financial conditions.
Confirming that this is the missing link, in a report this morning, Fitch said that Turkey’s incomplete policy response to the lira’s depreciation “is unlikely on its own to sustainably stabilize the currency and the economy.”
The rating agency, which one month ago downgraded Turkey to BB outlook “negative’ with more downgrades set to come, said that it believes “this would require an increase in the policy credibility and independence of the central bank, tolerance of weaker growth by policymakers, and a reduction in macroeconomic and financial imbalances.”
None of those are forthcoming as a result of Erdogan’s stongman tactics.
Meanwhile, in further pain for the Turkish economy, today the lira resumed its slide after a Turkish court rejected an American pastor’s appeal for release, drawing a stiff rebuke from President Donald Trump who said the United States would not take the detention “sitting down”.
“They should have given him back a long time ago, and Turkey has in my opinion acted very, very badly,” Trump told reporters at the White House, referring to Brunson. “So, we haven’t seen the last of that. We are not going to take it sitting down. They can’t take our people.”
It was not immediately clear what additional measures, if any, Trump could be considering. U.S. Treasury Secretary Steven Mnuchin told Trump at a cabinet meeting on Thursday that more sanctions were ready to be put in place if Brunson were not freed.
And as traders once again sold off the Lira, they pushed the return on the Turkish currency down to 37%, making it tied with the Argentine Peso for worst performing currency of 2018.
What happens next? Well, as Fitch explained in its detailed note, absent Erdogan folding and conceding his “new economics” have been wrong, the Lira will continue to suffer until eventually Fitch – as well as S&P and Moody’s – all downgrade Turkey to junk and below as its economic unraveling becomes unfixable.
Below is the full Fitch text (link):
Turkey Moves Insufficient to Restore Policy Credibility
The Turkish lira recovered somewhat this week after falling below TRY7 to the dollar, but is still down around 35% against the dollar in the year to date. Foreign exchange reserves (including gold) dropped to USD96.8 billion at end-June from USD110.4 billion at end-April.
The Central Bank of the Republic of Turkey raised the effective interest rate by 150bp through providing liquidity at the overnight interest rate of 19.25% rather than the main one-week repo rate of 17.75% and reduced reserve requirements to provide an additional USD10.7 billion of liquidity for domestic banks. The banking regulator has also restricted lira short-selling. On Thursday, Treasury and Finance Minister Berat Albayrak reiterated the goals of reducing inflation and the current account deficit, maintaining fiscal discipline and structural economic reform.
Efforts to fill the initial policy vacuum have helped stabilise the lira, as has a pledge from Qatar to invest USD15 billion in Turkey, although details and timing of the investment have not been disclosed. Albayrak ruled out capital controls on Thursday, and we do not believe these are likely as Turkey needs to attract large capital inflows. Nor do we believe Turkey will seek an IMF programme, unless the situation worsens materially, as this would be politically unpalatable.
However, an ad hoc and incomplete policy response cannot fully address the underlying causes of the lira’s fall, namely the large current account deficit and external financing requirements, the jump in inflation (to 15.9% in July), the build-up in foreign currency debt, and deterioration in economic policymaking credibility. These expose Turkey to a more challenging global financing environment, including a stronger US dollar, rising US interest rates and trade tensions, and a deteriorating political relationship with the US. Heightened risks to macroeconomic stability and the challenges of engineering an economic soft landing were key reasons why Fitch downgraded Turkey’s sovereign rating to ‘BB’ from ‘BB+’ and assigned a Negative Outlook on 13 July.
Bilateral support such as that pledged by Qatar is unlikely to meet Turkey’s external financing requirements without a sustainable policy adjustment. We estimate Turkey’s gross external financing requirement at USD229 billion in 2018 (including short-term debt), well in excess of official foreign exchange reserves.
In Fitch’s view, evidence of an appreciation of and genuine commitment to orthodox monetary policy from the top of the Turkish administration, and greater detail on policy measures in the new administration’s economic agenda, plus a track record of implementation, are likely to be required to restore lasting market confidence. Markets appear to believe that only a further increase in the main policy interest rate (which has already been raised by 500bp since April) would establish a sufficient real rate reflective of the risk premium, demonstrate policy credibility, support disinflation, re-establish a nominal anchor and attract capital inflows.
The abrupt tightening in financial conditions will sharpen the slowdown in GDP growth already under way. A slowdown from 2017’s unsustainable 7.4% growth and some depreciation of the real exchange rate were inevitable to reduce imbalances. Turkey’s vibrant economy and favourable medium-term growth potential support sovereign creditworthiness, as does low government debt (28% of GDP at end-2017, of which foreign-currency debt was only 11% of GDP). But the absence of an orthodox monetary policy response to the lira’s fall, and the rhetoric of the Turkish authorities have increased the difficulty of restoring economic stability and sustainability.
7. OIL ISSUES
8. EMERGING MARKET
Your early morning currency/gold and silver pricing/Asian and European bourse movements/ and interest rate settings FRIDAY morning 7:00 am
Euro/USA 1.1393 UP .0021/ REACTING TO MERKEL’S FAILED COALITION/ 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 ALL RED
USA/JAPAN YEN 110.45 DOWN 0.568 (Abe’s new negative interest rate (NIRP), a total DISASTER/NOW TARGETS INTEREST RATE AT .11% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL
GBP/USA 1.2719 UP 0.0007 (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED
USA/CAN 1.3149 DOWN .0011 (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 FRIDAY morning in Europe, the Euro ROSE by 21 basis points, trading now ABOVE the important 1.08 level RISING to 1.1393; / Last night Shanghai composite CLOSED DOWN 36.33 POINTS OR 1.34% /Hang Sang CLOSED UP 113.35 POINTS OR 0.42% /AUSTRALIA CLOSED UP .21% / EUROPEAN BOURSES DEEPLY IN THE RED
The NIKKEI: this FRIDAY morning CLOSED UP 78.34 POINTS OR 0.35%
Trading from Europe and Asia
1/EUROPE OPENED ALL RED
2/ CHINESE BOURSES / :Hang Sang UP 113.35 POINTS OR 0.42% /SHANGHAI CLOSED DOWN 36.23 POINTS OR 0.42%
Australia BOURSE CLOSED UP .21%
Nikkei (Japan) CLOSED UP 78.34 POINTS OR 0.35%
INDIA’S SENSEX IN THE GREEN
Gold very early morning trading: 1176.60
silver:$14.63
Early FRIDAY morning USA 10 year bond yield: 2.85% !!! DOWN 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 3.01 DOWN 2 IN BASIS POINTS from THURSDAY night. (POLICY FED ERROR)/
USA dollar index early FRIDAY morning: 96.44 DOWN 20 CENT(S) from THURSDAY’s close.
This ends early morning numbers FRIDAY MORNING
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And now your closing FRIDAY NUMBERS \1: 00 PM
Portuguese 10 year bond yield: 1.86% UP 1 in basis point(s) yield from THURSDAY/
JAPANESE BOND YIELD: +.10% DOWN 0 BASIS POINTS from THURSDAY/JAPAN losing control of its yield curve/EXTREMELY VOLATILE YESTERDAY
SPANISH 10 YR BOND YIELD: 1.45% UP 0 IN basis point yield from THURSDAY/
ITALIAN 10 YR BOND YIELD: 3.12 DOWN 0 POINTS in basis point yield from THURSDAY/
the Italian 10 yr bond yield is trading 167 points HIGHER than Spain.
GERMAN 10 YR BOND YIELD: RISES TO +.300% IN BASIS POINTS ON THE DAY
END
IMPORTANT CURRENCY CLOSES FOR FRIDAY
Closing currency crosses for FRIDAY night/USA DOLLAR INDEX/USA 10 YR BOND YIELD/1:00 PM
Euro/USA 1.14112 UP .0040(Euro UP 40 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/
USA/Japan: 110.48 DOWN 0.538 Yen UP 54 basis points/
Great Britain/USA 1.2735 UP .0022( POUND UP 22 BASIS POINTS)
USA/Canada 1.3082 Canadian dollar UP 78 Basis points AS OIL ROSE TO $65.91
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This afternoon, the Euro was ROSE 40 to trade at 1.1412
The Yen ROSE to 110.48 for a GAIN of 54 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 GAINED 22 basis points, trading at 1.2734/
The Canadian dollar GAINED 22 basis points to 1.3082/ WITH WTI OIL RISING TO 65.91
The USA/Yuan,CNY closed AT 6.8775 ON SHORE (YUAN UP)
THE USA/YUAN OFFSHORE: 6.8558 ( YUAN UP)
TURKISH LIRA: 6.0750
the 10 yr Japanese bond yield closed at +.10% DOWN 0 BASIS POINTS FROM YESTERDAY
Your closing 10 yr USA bond yield DOWN 3 IN basis points from THURSDAY at 2.86 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.02 DOWN 3 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, 96.28 DOWN 37 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 FRIDAY: 1:00 PM
London: CLOSED UP 2.21 POINTS OR 0.03%
German Dax :CLOSED DOWN 26.62 OR 0.22%
Paris Cac CLOSED DOWN 4.09 POINTS OR 0.08%
Spain IBEX CLOSED DOWN 10.10 POINTS OR 0.11%
Italian MIB: CLOSED DOWN: 108.86 POINTS OR 0.53%/
The Dow closed UP 110.59 POINTS OR 0.43%
NASDAQ closed UP 9.81 points or 0.13% 4.00 PM EST
WTI Oil price; 65.91 1:00 pm;
Brent Oil: 71.73 1:00 EST
USA /RUSSIAN / ROUBLE CROSS: 67.49/ THE CROSS HIGHER BY 66/100 ROUBLES/DOLLAR (ROUBLE LOWER BY 66 BASIS PTS)
USA DOLLAR VS TURKISH LIRA: 6.0750 PER ONE USA DOLLAR.
TODAY THE GERMAN YIELD FALLS TO +.30% 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, 4:00 pm/and 10 year USA interest rate:
WTI CRUDE OIL PRICE 4:30 PM:$65.89
BRENT: $71.72
USA 10 YR BOND YIELD: 2.86%
USA 30 YR BOND YIELD: 3.02%/
EURO/USA DOLLAR CROSS: 1.14413 UP .0069 ( UP 69 BASIS POINTS)
USA/JAPANESE YEN:110.61 down 0.397 (YEN DOWN 40 BASIS POINT/ .
USA DOLLAR INDEX: 96.11 DOWN 53 cent(s)/
The British pound at 5 pm: Great Britain Pound/USA: 1.2748 UP 35 POINTS FROM YESTERDAY
the Turkish lira close: 6.0328
Canadian dollar: 1.3060 UP 99 BASIS pts
USA/CHINESE YUAN (CNY) : 6.8775 (ONSHORE)
USA/CHINESE YUAN(CNH): 6.8320 (OFFSHORE)
German 10 yr bond yield at 5 pm: ,0.300%
VOLATILITY INDEX: 12.63 CLOSED DOWN 0.82
LIBOR 3 MONTH DURATION: 2.322% .LIBOR RATES ARE RISING
And now your more important USA stories which will influence the price of gold/silver
TRADING IN GRAPH FORM FOR THE DAY
Global Stocks Slump, US Stocks Jump Despite
Economic Data Dump
After a week like that, this seemed appropriate…
Before we get started, let’s note that all is not well in the world (despite the constant happy-talk on ‘Murican media)… Global stocks are down 14% from their all-time-high in January…
Year-to-Date… US Stocks are dominating…
31-month lows for SHCOMP as Chinese stocks had another ugly week… (3rd biggest weekly drop since Jan 2016)
“The Chinese stock market does not reflect the speed of the Chinese economy” is what the mainstream media constantly wants to reassure. There’s just one thing…
Asia mega-tech (TATS – Tencent, Alibaba, Taiwan Semi, Samsung) crashed this week…
European stocks were all lower too…
But of course, US equities ended higher… again… The Dow and S&P are no up 6 weeks in a row – because noting else matters. NOTE Nasdaq ended the week lower…
US macro data is the most disappointing in 11 months, but stocks love it…
US stocks were on their own…
And it was all defensives…
Tesla was clubbed like a baby seal as Elon Musk’s NYT confessional failed to create the “feel sorry for me” narrative he hyped for… (worst day since March and worst week for Tesla stocks since Feb 2016 – after the best week since May 2013)
TSLA Bonds are leading…
FANG Stocks were all ugly too…
But AAPL is soaring to new record highs – holding well above the trillion dollar market cap level…
Bonds were bid on the week too…
10Y Yields ended the week unchanged…
Another week, another flattening in the yield curve…
FX markets were once again an active space – but the dollar index ended the week modestly lower…(biggest drop in 6 weeks)
Despite its bounce – after last week’s collapse – EM FX ended the week lower (3rd week in a row)…
The Turkish Lira surged over 6% after last week’s 25%-plus collapse – this is the best week for the Lira since Oct 2008…
After nine straight weeks of weakness, offshore yuan strengthened in the week…helped by the late headlines today…
Year-to-date, the Argentine Peso and Turkish Lira are now tied for being the dirtiest shirt in the abattoir…
Finally in currency-land, cryptos had a serious roller-coaster week with Ethereum crushed and Bitcoin outperforming but the latter half of the week saw a serious bid back in the crypto space…
Commodities ended the week lower but the last two days have seen a notable rebound…
WTI fell to lowest in 2 months breaking below recent range… this is the 7th weekly loss in a row – the longest losing streak since 2014.
Spot Silver’s weakest since Feb 2016 and has fallen for 10 straight weeks in a row. It’s worst ever run…
And finally, we will leave you with this… global risk assets are now tracking the contraction of the global central bank balance sheets (blue line below)… apart from US equities (green line below) – for now…
NOTE – the orange line is the GSIBs (Global Systemically Important Banks) which are now in a bear market… what does that say about the state of the global economy?
END
market trading
late this afternoon: stocks and the yuan and gold jump on reports of a USA=China roadmap for trade talks
(courtesy zerohedge)
Stocks, Yuan Jump On Reports Of US-China “Roadmap” For Trade-Talks
US equity markets are jumping to the highs of the day after the Wall Street Journal reports that Chinese and U.S. negotiators are drawing a road map for talks to end trade deadlock, culminating with meetings between U.S. President Trump and Chinese President Xi Jinping at multilateral summits in November, citing officials in both nations. As part of preparation for the November summit, the two nations have scheduled the previously disclosed mid level talks in Washington next week, the news of which led to a sharp rebound in risk assets in recent days.
As WSJ notes the planning represents an effort on both sides to keep a spiraling trade dispute—which already has involved billions of dollars in tariffs and comes with the threat of hundreds of billions more—from torpedoing the U.S.-China relationship and shaking global markets.
The algos immediate reaction was simple – BTFD…
The Dow is up 150 points to its highest since Feb 27th…
And the yuan is also rallying…
A nine-member delegation from Beijing, led by Vice Commerce Minister Wang Shouwen, will hold meetings with U.S. officials led by the Treasury undersecretary, David Malpass, on Aug. 22 and Aug. 23.
Market DATA
We are now seeing soft data reports showing that the USA is rolling over: today it is U. of Michigan sentiment and it slumped to an 11 month low. The all important spending category plunged
(courtesy zerohedge)
UMich Sentiment Slumps To 11-Month Lows As
‘Spending Plans’ Plunge
Led by a collapse in Americans’ views of the current situation, University of Michigan’s Sentiment Survey dropped to 11-month lows, dramatically missing expectations for a rise.
- Sentiment index decreased to 95.3 (est. 98) from prior month’s 97.9; lowest since Sept., below all analyst estimates
- Current conditions gauge, which measures Americans’ perceptions of their finances, fell to 107.8 from 114.4 in July; 6.6-point drop is biggest since Aug. 2011
- Expectations measure unchanged at 87.3
As Bloomberg reports, consumers showed a broad drop in confidence about major purchases, a possible caution signal for spending following strong gains in the second quarter.
Buying conditions for large household durable goods slipped to the lowest level in almost four years;
Vehicle-buying views were the least favorable since 2013;
and home-buying conditions were seen less favorably than any time in about a decade.
“Consumers voiced the least favorable views on pricing for household durables in nearly ten years,” Richard Curtin, director of the University of Michigan consumer survey, said in a statement. “The recent favorable GDP report had only a small positive impact on growth prospects for the economy and on unemployment expectations.”
Respondents also continued to express concern about how trade tensions may affect the economy. Negative references to levies remained widespread, with 32 percent citing unfavorable references to the trade policy in early August, according to the report, following 35 percent in July.
And this adds to the recent spate of soft survey data catching down to the uglier reality of US economic real data…
Hope is not a long-term strategy.
SWAMP STORIES
What corruption: A Pentagon whistleblower, Adam Lovinger has been stripped of his security clearance and demoted after complaining about questionable government contracts to Stefan Halper and a company headed by Chelsea Clinton
(courtesy zerohedge)
Pentagon Whistleblower Demoted After Exposing Millions Paid To FBI Spy Halper, Clinton Crony
A Pentagon whistleblower was stripped of his security clearance and demoted after complaining about questionable government contracts with both FBI informant spy Stefan Halper and a company headed by Chelsea Clinton’s “best friend” for whom then-Secretary of State Hillary Clinton arranged meetings, reports the Washington Times.
Adam Lovinger, a Trump supporter and 12-year veteran of the Pentagon’s Office of Net Assessment (ONA), filed a whistleblower reprisal complaint with the Defense Department’s inspector general in May against ONA boss James Baker – who hired Halper, 73, to “conduct foreign relations” and kept the details of the spy’s contracts “close to the vest.” Baker was appointed chief of the ONA in 2015 by Obama Defense Secretary, Ashton Carter.
At that point, Lovinger wouldn’t have known was a spy working with the FBI/DOJ on operation “Crossfire Hurricane” – the code name for the Obama administration’s counterintelligence operation against the Trump campaign.
In an internal October 2016 email to higher-ups, Mr. Lovinger wrote of “the moral hazard associated with the Washington Headquarters Services contracting with Stefan Halper,” the complaint said. It said Mr. Baker hired Mr. Halper to “conduct foreign relations,” a job that should be confined to government officials.
…
In the fall of 2016, as the election loomed, Mr. Lovinger sent emails to Mr. Baker and other officials at the Office of Net Assessment complaining about the entire outside contracting process. He also said the office failed to write papers on long-term threats presented by radical Islam, China and Iran.
And in September 2016, Lovinger sent an email directly to Baker summing up the perceived problems, which reads in part:
“Some of our contractors distribute to others their ONA work for personal and professional self-promotion,” wrote Lovinger. “Another part is the growing narrative that ONA’s most high-profile contractors are known for getting paid a lot to do rather peripheral work.”
“On the issue of pay, our contractors boast about how much they get paid from ONA. Such boasting, of course, generates jealously among those outside the club, and particularly from those who have tried to secure ONA contracts unsuccessfully.”
“On the issue of quality, more than once I have heard our contractor studies labeled ‘derivative,’ ‘college-level’ and based heavily on secondary sources. One of our contractor studies was literally cut and pasted from a World Bank report that I just happened to have read the week before reading the contractor study itself. Even the font was the same.”
Halper – an Oxford University professor, former US government official and longtime FBI / CIA asset (who was married to the CIA deputy director’s daughter at one point), received over $400,000 for a 2016 contract which Lovinger complained about.
According to USASpending.gov, Mr. Halper was paid $411,000 by Washington Headquarters Services on Sept. 26, 2016, for a contract that ran until this March. –Washington Times
In total, the American citizen teaching abroad received over $1 million from contracts dated between 2012 and 2016.
Lovinger’s attorney, Sean M. Bigley, filed the second of four complaints on July 18 with the Pentagon’s senior ethics official, claiming that Lovinger’s bosses punished him on May 1, 2017 by abusing the security clearance process to yank his credentials and relegate him to clerical chores. Lovinger’s complaint also names the Washington Headquarters Services, a support agency within the Pentagon that awarded the Halper contracts.
“As it turns out, one of the two contractors Mr. Lovinger explicitly warned his ONA superiors about misusing in 2016 was none other than Mr. Halper,” wrote Bigley in the ethics complaint, which referred to the contracts as “cronyism and corruption.”
“Nobody in the office seemed to know what Halper was doing for his money,” said Bigley. “Adam said Jim Baker, the director, kept Halper’s contracts very close to the vest. And nobody seemed to have any idea what he was doing at the time. He subcontracted out a good chunk of it to other academics. He would compile them all and then collect the balance as his fee as a middleman. That was very unusual.”
A longtime CIA and FBI asset who once reportedly ran a spy-operation on the Jimmy Carter administration, Halper was enlisted by the FBI to spy on several Trump campaign aides during the 2016 U.S. election, including Carter Page and George Papadopoulos.
Halper’s $411,575 award came three days after a September 23 Yahoo! News article by Michael Isikoff about Trump aide Carter Page, which used information fed to Isikoff by “Steele dossier” creator Christopher Steele. The FBI would use the Yahoo! article along with the largely unverified dossier as supporting evidence in an FISA warrant application for Page.
The unassuming university professor approached Page during an election-themed conference at Cambridge on July 11, 2016, six weeks after the September 26 DoD award start date. The two would stay in contact for the next 14 months, frequently meeting and exchanging emails.
He said that he first encountered the informant during a conference in mid-July of 2016 and that they stayed in touch. The two later met several times in the Washington area. Mr. Page said their interactions were benign. –New York Times
And as the Daily Caller reported, Halper used a decades-old association with Paul Manafort to break the ice with Page.
Page noted that in their first conversation at Cambridge, Halper said he was longtime friends with then-campaign chairman Paul Manafort. A person close to Manafort told TheDCNF that Manafort has not seen Halper since the Gerald Ford administration. Manafort and Page are accused in the Steele dossier of having worked together on the campaign’s collusion conspiracy, but both men say they have never met. –Daily Caller
Halper would continue to spy on Page after the election. Two days after the second installment of Halper’s 2016 DoD contract, On July 28, he emailed Page with what the Trump campaign aide describes as a “cordial” communication, which did not seem suspicious to him at the time.
In the email to Page, Halper asks what his plans are post-election, possibly probing for more information. “It seems attention has shifted a bit from the ‘collusion’ investigation to the ‘ contretempts’ [sic] within the White House and, how–or if–Mr. Scaramucci will be accommodated there,” Halper wrote.
Clinton connection
The other complaint lodged by Lovinger concerns a string of contracts totaling $11 million to Long Term Strategy Group – a D.C. consulting firm headed by self-described “best friend” of Chelseal Clinton, Jacqueline Newmyer Deal.
In October, the Washington Free Beacon reported that then-Secretary of State Hillary Clinton arranged meetings in 2009 between Deal and Pentagon officials to discuss contracts – to which Deal says no award “resulted directly or indirectly from the actions or influence of Secretary Clinton.”
According to one 2009 email, Clinton said she recommended Deal to Michele Flournoy, the newly installed undersecretary of defense for policy, who was seeking young women to mentor.
Deal, a specialist in China affairs who worked at the White House as a press aide for First Lady Clinton in the 1990s, wrote back to Clinton saying she would meet Flournoy on May 5, 2009, and stated “thank you very much for making this happen.”
Later that month, Deal thanked Clinton for “all your encouragement and help with DoD, ” shorthand for the Defense Department. –Free Beacon
In a statement, Deal said: “Jacqueline Deal and the Long Term Strategy Group (LTSG) are justifiably proud of their collaboration with the US Department of Defense across multiple administrations over the last two decades, beginning under the administration of President George W. Bush. LTSG’s work has consistently earned the highest respect and confidence of its clientele in government and has won LTSG a reputation for producing research and analysis of exceptional quality.”
end
The Wall Street journal is the only main stream media reporting on the misdeeds of Bruce Ohr, the Dept of Justice and the FBI. Kim Strassel has done a great job reporting on this although she has been receiving a lot of abuse.
She correctly states that all the information on this is located on the 302 forms…but strangely they are all classified. Once they are revealed to congress and once declassified, we will know the truth
(courtesy Kim Strassel, Wall Street Journal/zero hedge)
“Deeply Troubling” – Wall Street Journal Implores “What Was Bruce Ohr Doing?”
The Wall Street Journal continues to counter the liberal mainstream media’s Trump Derangement Syndrome, dropping uncomfortable truth-bombs and refusing to back off its intense pressure to get to the truth and hold those responsible, accountable (in a forum that is hard for the establishment to shrug off as ‘Alt-Right’ or ‘Nazi’ or be ‘punished’ by search- and social-media-giants).
And once again Kimberley Strassel – who by now has become the focus of social media attacks for her truth-seeking reporting – does it again this morning, as she points out – hours after former CIA Director Brennan threw a tantrum over having his security clearance removed – that while Justice has released some damning documents – particularly on what Bruce Ohr was doing – much of the truth is still classified.
What Was Bruce Ohr Doing?
The Federal Bureau of Investigation and Justice Department have continued to insist they did nothing wrong in their Trump-Russia investigation. This week should finally bring an end to that claim, given the clear evidence of malfeasance via the use of Bruce Ohr.
Mr. Ohr was until last year associate deputy attorney general.
He began feeding information to the FBI from dossier author Christopher Steele in late 2016 – after the FBI had terminated Mr. Steele as a confidential informant for violating the bureau’s rules. He also collected dirt from Glenn Simpson, cofounder of Fusion GPS, the opposition-research firm that worked for Hillary Clinton’s campaign and employed Mr. Steele.Altogether, the FBI pumped Mr. Ohr for information at least a dozen times, debriefs that remain in classified 302 forms.
All the while, Mr. Ohr failed to disclose on financial forms that his wife, Nellie, worked alongside Mr. Steele in 2016, getting paid by Mr. Simpson for anti-Trump research. The Justice Department has now turned over Ohr documents to Congress that show how deeply tied up he was with the Clinton crew – with dozens of emails, calls, meetings and notes that describe his interactions and what he collected.
Mr. Ohr’s conduct is itself deeply troubling. He was acting as a witness (via FBI interviews) in a case being overseen by a Justice Department in which he held a very senior position. He appears to have concealed this role from at least some superiors, since Deputy Attorney General Rod Rosenstein testified that he’d been unaware of Mr. Ohr’s intermediary status.
Lawyers meanwhile note that it is a crime for a federal official to participate in any government matter in which he has a financial interest. Fusion’s bank records presumably show Nellie Ohr, and by extension her husband, benefiting from the Trump opposition research that Mr. Ohr continued to pass to the FBI. The Justice Department declined to comment.
But for all Mr. Ohr’s misdeeds, the worse misconduct is by the FBI and Justice Department.
It’s bad enough that the bureau relied on a dossier crafted by a man in the employ of the rival presidential campaign. Bad enough that it never informed the Foreign Intelligence Surveillance Court of that dossier’s provenance. And bad enough that the FBI didn’t fire Mr. Steele as a confidential human source in September 2016 when it should have been obvious he was leaking FBI details to the press to harm Donald Trump’s electoral chances. It terminated him only when it was absolutely forced to, after Mr. Steele gave an on-the-record interview on Oct. 31, 2016.
But now we discover the FBI continued to go to this discredited informant in its investigation after the firing—by funneling his information via a Justice Department cutout.The FBI has an entire manual governing the use of confidential sources, with elaborate rules on validations, standards and documentation. Mr. Steele failed these standards. The FBI then evaded its own program to get at his info anyway.
And it did so even though we have evidence that lead FBI investigators may have suspected Mr. Ohr was a problem.
An Oct. 7, 2016, text message from now-fired FBI agent Peter Strzok to his colleague Lisa Page reads: “Jesus. More BO leaks in the NYT,” which could be a reference to Mr. Ohr.
The FBI may also have been obtaining, via Mr. Ohr, information that came from a man the FBI had never even vetted as a source—Mr. Simpson. Mr. Steele had at least worked with the FBI before; Mr. Simpson was a paid political operative. And the Ohr notes raise further doubts about Mr. Simpson’s forthrightness. In House testimony in November 2017, Mr. Simpson said only that he reached out to Mr. Ohr after the election, and at Mr. Steele’s suggestion. But Mr. Ohr’s inbox shows an email from Mr. Simpson dated Aug. 22, 2016 that reads, in full: “Can u ring.”
The Justice Department hasn’t tried to justify any of this; in fact, last year it quietly demoted Mr. Ohr. In what smells of a further admission of impropriety, it didn’t initially turn over the Ohr documents; Congress had to fight to get them.
But it raises at least two further crucial questions.
First, who authorized or knew about this improper procedure? Mr. Strzok seems to be in the thick of it, having admitted to Congress interactions with Mr. Ohr at the end of 2016. While Mr. Rosenstein disclaims knowledge, Mr. Ohr’s direct supervisor at the time was the previous deputy attorney general, Sally Yates. Who else in former FBI Director Jim Comey’s inner circle and at the Obama Justice Department nodded at the FBI’s back-door interaction with a sacked source and a Clinton operative?
Second, did the FBI continue to submit Steele- or Simpson-sourced information to the FISA court? Having informed the court in later applications that it had fired Mr. Steele, the FBI would have had no business continuing to use any Steele information laundered through an intermediary.
* * *
Strassel concludes with the point that she and The Wall Street Journal Editorial Board have been hammering for months…
We could have these answers pronto; they rest in part in those Ohr 302 forms. And so once again: a call for President Trump to declassify.
It’s time for things to get more serious than slaps on the wrist, firings, and self-inflicted black-eyes!
end
Trump taunts NY Governor Cuomo’s “America Never Great” statement. It will probably be a career threatening!!
(courtesy zerohedge)
Trump Taunts Cuomo: “America Never Great” Statement Is Career Threatening
PlanetFreeWill’s Alexander Paul reports that, in a quick spurt of tweets Friday morning, President Trump continued to slam New York Governor Andrew Cuomo over his assessment that America “was never great.”
“Wow! Big pushback on Governor Andrew Cuomo of New York for his really dumb statement about America’s lack of greatness,” Trump said via Twitter. “I have already MADE America Great Again, just look at the markets, jobs, military- setting records, and we will do even better. Andrew “choked” badly, mistake!”
Wow! Big pushback on Governor Andrew Cuomo of New York for his really dumb statement about America’s lack of greatness. I have already MADE America Great Again, just look at the markets, jobs, military- setting records, and we will do even better. Andrew “choked” badly, mistake!
In a following tweet, Trump called Cuomo’s words “career threatening” and took a shot at his CNN pundit brother, Chris.
When a politician admits that “We’re not going to make America great again,” there doesn’t seem to be much reason to ever vote for him. This could be a career threatening statement by Andrew Cuomo, with many wanting him to resign-he will get higher ratings than his brother Chris!
When a politician admits that “We’re not going to make America great again,” there doesn’t seem to be much reason to ever vote for him. This could be a career threatening statement by Andrew Cuomo, with many wanting him to resign-he will get higher ratings than his brother Chris!
New York Governor Cuomo, who is being considered a possible contender for the presidency in 2020, told an audience during a bill signing event on Wednesday that: “We are not going to Make America Great Again. It was never that great.”
New York Gov. Andrew Cuomo ratchets up verbal feud with Pres. Trump: “We’re not going to make America great again – it was never that great.” https://abcn.ws/2MyzMF0
“We have not reached greatness. We will reach greatness when every American is fully engaged,” he said. “We will reach greatness when discrimination and stereotyping against women, 51 percent of the population, is gone, and every woman’s full potential is realized and unleashed.”
When first commenting on the NY Governor’s statement, Trump expressed disbelief.
“WE’RE NOT GONG TO MAKE AMERICA GREAT AGAIN, IT WAS NEVER THAT GREAT,” the President tweeted Thursday. “Can you believe this is the Governor of the Highest Taxed State in the U.S., Andrew Cuomo, having a total meltdown!”
end
Let’s close out the week as usual, with this offering courtesy of Greg Hunter/USAWatchdog
(courtesy Greg Hunter)
Brennan Loses Security Clearance, Big Tech Killing Free Speech, Dollar Update
By Greg Hunter On August 17, 2018 In Weekly News Wrap-Ups

By Greg Hunter’s USAWatchdog.com (WNW 348, 8.17.18)
Obama Administration CIA Director John Brennan had his security clearance revoked by President Trump. Brennan says it’s an attack on Trump’s critics. Others say it’s the beginning of punishment for being the “ringleader” of a soft coup to remove Donald Trump from office. Are indictments of Brennan and his co- conspirators coming soon?
Say something that big tech companies do not like and you can be banned from social media platforms such at Twitter and Facebook. It’s not just people like Alex Jones getting banned, it is also GOP congressional candidates such as Elizabeth Heng whose family story about escaping brutal communist dictator Pol Pot in Cambodia is considered “obscene.”
Lots of people are worried about the U.S. dollar. Is it going to continue to rise in value? Is the Fed going to keep raising interest rates on the short end of the curve? Can emerging markets like Turkey survive without an economic meltdown? All good questions, and we will try to give you the answers.
Join Greg Hunter as he talks about these stories and more in the Weekly News Wrap-Up.
(This report will talk about revoking top security clearances, suppression of free speech, and the shaky global economy and the strong dollar.)
Video Link
-END-
Judge Ellis receives protection after receiving death threats. The jury is to re
After Death Threats, Manafort Judge Gets Federal Protection; Jury To Resume Deliberations Monday

The judge in Paul Manafort’s Virginia trial for bank and tax fraud revealed in open court on Friday that he has received death threats, and is now traveling with the protection of the US Marshals Service.
“I have the marshal’s protection,” Ellis said. “I don’t even go to the hotel alone. I won’t even reveal the name of the hotel.”
“I had no idea this case excited this emotion in the public,” he added.
Manafort also refused to release the names of the jurors at the request of a coalition of news organizations, citing safety reasons. The Washington Post, New York Times, AP, CNN, NBC, Politico and Buzzfeed all requested the names of jurors deliberating in the Manafort case.
“I don’t feel it’s right if I release their names,” said Ellis.
BREAKING: #Manaforttrial judge won’t release names of jurors citing safety reasons. Says he is under 24/7 US Marshals protection after threats and said “I had no idea this case excited this emotion in the public.”
Meanwhile, the jurors told Ellis in a Friday afternoon note that they are unlikely to reach a verdict before the weekend, and would like to leave at 5 p.m. so one of the jurors can attend an event. Ellis said he would reconvene court at 10 minutes to 5 p.m. to discuss when they would like to reconvene on Monday.
Kevin Downing, an attorney for Manafort, told The Hill that he sees the note as a signal the jury will not reach a verdict on Friday. –The Hill
On Thursday, the jury asked Ellis to redefine reasonable doubt, and had additional questions about reporting foreign bank transactions, shelf companies, filing requirements related to income and what evidence relates to each charge.
WE WILL SEE YOU ON MONDAY NIGHT.
HARVEY





























































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