AUGUST 30/TOMORROW ENDS OPTION EXPIRY AND AS ALWAYS GOLD/SILVER ARE WHACKED: GOLD DOWN $6.90 TO $1199.00/SILVER DOWN 20 CENTS TO $14.54/HUGE LIQUIDATION IN BOTH COMEX SILVER AND GOLD CONTRACTS/TRUMP READY TO INITIATE ANOTHER 200 BILLION DOLLARS WORTH OF CHINESE TARIFFS/ITALIAN 10 YR BOND YIELDS CROSS 3.20%/4 NATIONS ARE WITNESSING THEIR CURRENCY PLUMMET: TURKEY WITH THE 3 PM VALUE: 6.6702/BRAZILIAN REAL: 4.15 TO ONE/ARGENTINA PESO 39: 1 AND SOUTH AFRICAN RAND:14.73 TO THE DOLLAR/MORE SWAMP STORIES FOR YOU TONIGHT/

 

GOLD: $1199.00 DOWN  $6.90 (COMEX TO COMEX CLOSINGS)

Silver:   $14.54   DOWN 20 CENTS (COMEX TO COMEX CLOSING)

 

Closing access prices:

Gold $1199.90

silver: $14.54

 

 

For comex gold:

AUGUST/

NUMBER OF NOTICES FILED TODAY FOR AUGUST CONTRACT:  28 NOTICE(S) FOR 2800  oz 

TOTAL NOTICES SO FAR 2414 FOR 241400 OZ (7.5085 tonnes)

For silver:

AUGUST

1 NOTICE(S) FILED TODAY FOR

5,000 OZ/

Total number of notices filed so far this month: 1213 for 6,065,000 oz

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XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $6855/OFFER $6944: DOWN  $159(morning)

Bitcoin: BID/ $6868/offer $6953: DOWN  $145(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: $1210.81

NY price  at the same time:$1205.20

 

PREMIUM TO NY SPOT: $5.61

XX

Second gold fix early this morning: $ 1209.81

 

 

USA gold at the exact same time:$1201.60

 

PREMIUM TO NY SPOT:  $8.21

 

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 SURPRISINGLY FELL BY HUMONGOUS 12,050 CONTRACTS FROM 227,329 DOWN TO 215,279 DESPITE YESTERDAY’S SMALL 10 CENT FALL IN SILVER PRICING AT THE COMEX. WE MUST HAVE HAD  CONTINUAL BANKER AND SPECULATOR SHORT COVERING TO A HIGH DEGREE!! 

TODAY WE MOVED CONSIDERABLY AWAY FROM LAST WEEK’S RECORD SETTING OPEN INTEREST OF 244,196 CONTRACTS.

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 6 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 VERY STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:

125 EFP’S FOR SEPT. , 2791 EFP’S FOR DECEMBER AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 2916 CONTRACTS. WITH THE TRANSFER OF 2916 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 2916 EFP CONTRACTS TRANSLATES INTO 14.58MILLION OZ AND ACCOMPANYING:

1.THE 10 CENT FALL 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 6.065 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: 

37,021 CONTRACTS (FOR 22 TRADING DAYS TOTAL 37,021 CONTRACTS) OR 185.105 MILLION OZ: (AVERAGE PER DAY: 1682 CONTRACTS OR 8.413 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY:  185.105 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 26.42% 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:           2,016.8    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 HUGE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 12,050 DESPITE THE SMALL 10 CENT FALL IN SILVER PRICING AT THE COMEX YESTERDAY. THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 2916  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 LOST A GIGANTIC SIZED: 9134 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:

i.e 2916 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A DECREASE OF 12,050  OI COMEX CONTRACTS. AND ALL OF THIS LOSS OF DEMAND HAPPENED WITH A SMALL 10 CENT LOSS IN PRICE OF SILVER  AND A CLOSING PRICE OF $14.74 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 6.065 MILLION OZ IN A NON ACTIVE MONTH. IT SURE LOOKS LIKE ANOTHER FAILED BANKER AND SPECULATOR SHORT COVERING EXERCISE AS THESE GUYS 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. 1.075 MILLION OZ TO BE EXACT or 153% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT AUGUST MONTH/ THEY FILED AT THE COMEX: NOTICE(S) FOR 5,000 OZ OF SILVER

IN SILVER,PRIOR TO TODAY, 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.  

AND NOW WE RECORD FOR POSTERITY ANOTHER ALL TIME RECORD OPEN INTEREST AT THE COMEX OF 244,196 CONTRACTS ON AUGUST 22/2018 AND AGAIN WHEN THIS RECORD WAS SET, THE PRICE OF SILVER WAS $14.78

AND LOWER IN PRICE THAN PREVIOUS RECORDS.

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. 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) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   ) AND NOW FOR AUGUST 6.065 MILLION OZ.
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018) AND NOW AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  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 HUGE SIZED 7075 CONTRACTS DOWN TO 472,208 WITH THE LOSS IN THE COMEX GOLD PRICE/YESTERDAY’S TRADING (A FALL IN PRICE OF $2.90)THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 5458 CONTRACTS:

AUGUST HAD AN ISSUANCE OF 0 CONTRACTS, OCTOBER HAD EFP’S ISSUED AND, DECEMBER HAD AN ISSUANCE OF 5458 CONTACTS  AND  ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 474.311. 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 FAIR SIZED OI LOSS IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 1617 CONTRACTS:  7075 OI CONTRACTS DECREASED AT THE COMEX AND 5458 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI LOSS:  1617 CONTRACTS OR 161,700 OZ = 5.09 TONNES.  AND ALL OF THIS LOSS OF DEMAND  OCCURRED WITH A  TINY FALL IN THE PRICE OF GOLD/ YESTERDAY TO THE TUNE OF $2.90.

 

 

YESTERDAY, WE HAD 8260 EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JUNE : 146,820 CONTRACTS OR 14,682,000 OZ OR 456.67 TONNES (22 TRADING DAYS AND THUS AVERAGING: 6673 EFP CONTRACTS PER TRADING DAY OR 667300 OZ/ TRADING DAY),,

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 22 TRADING DAYS IN  TONNES: 456.67 TONNES

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

THUS EFP TRANSFERS REPRESENTS 456.67/2550 x 100% TONNES =  17.90% OF GLOBAL ANNUAL PRODUCTION SO FAR IN JULY ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:     5,174.37*  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)

ACCUMULATION OF GOLD EFP FOR AUG. 2018                                                   (23 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 HUGE SIZED DECREASE IN OI AT THE COMEX OF 7075 WITH THE SMALL LOSS IN PRICING ($2.90 THAT GOLD UNDERTOOK YESTERDAY) // .  WE ALSO HAD A  STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 5458 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 5458 EFP CONTRACTS ISSUED, WE HAD A LOSS OF 1617 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

5458 CONTRACTS MOVE TO LONDON AND 7075 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the LOSS in total oi equates to 5.029 TONNES). ..AND THIS LOSS IN DEMAND OCCURRED WITH THE  FALL OF $2.90 IN YESTERDAY’S TRADING AT THE COMEX!!!.

 

 

we had: 28 notice(s) filed upon for 280oz of gold at the comex.

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

GLD...

WITH GOLD DOWN $6.90  TODAY: / 

 

NO CHANGE IN GOLD INVENTORY AT THE GLD

 

/GLD INVENTORY   759.87 TONNES

Inventory rests tonight: 759.87 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 20  CENTS TODAY

A BIG CHANGE IN SILVER INVENTORY AT THE SLV; A DEPOSIT OF 742,000 OZ

/INVENTORY RESTS AT 329.856 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 GIGANTIC SIZED 12,050 CONTRACTS from 227,329 DOWN TO  215,279  AND MOVING CONSIDERABLY AWAY FROM THE NEW COMEX RECORD SET THIS  MONTH AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..WE MUST HAVE HAD BOTH BANKER AND HEDGE FUND SHORT COVERING OCCURRING TO A HIGH DEGREE. THE PREVIOUS RECORD WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  1 1/3 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…..

 

.

OUR CUSTOMARY MIGRATION OF COMEX LONGS CONTINUE TO MORPH INTO LONDON FORWARDS  AS OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE:

 

0 EFP CONTRACTS FOR AUGUST., 125 EFP CONTRACTS FOR SEPTEMBER, 2791 CONTRACTS FOR DECEMBER AND  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2791 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 12,050 CONTRACTS TO THE 2916 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A NET LOSS OF 9134 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES: 45.67 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 6.065 MILLION OZ FOR AUGUST... AND ALL OF THIS HUGE PHYSICAL DEMAND OCCURRED WITH A 10 CENT PRICING LOSS AT THE SILVER COMEX!!!!

 

RESULT: A GIGANTIC SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE SMALL 10 CENT PRICING LOSS THAT SILVER UNDERTOOK IN PRICING YESTERDAY. BUT WE ALSO HAD A  GOOD SIZED 2916 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) THURSDAY MORNING/ WEDNESDAY NIGHT: Shanghai closed DOWN 31.56 POINTS OR 1.14%   /Hang Sang CLOSED DOWN 259.39 POINTS OR 0.89%/   / The Nikkei closed UP 21.25 POINTS OR 0.09%/Australia’s all ordinaires CLOSED UP 0.06%  /Chinese yuan (ONSHORE) closed DOWN  at 6.8316 AS POBC RESUMES SLIGHTLY ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER/Oil UP to 69.87 dollars per barrel for WTI and 77.75 for Brent. Stocks in Europe OPENED RED //.  ONSHORE YUAN CLOSED  DOWN AT 6.8316 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8432: HUGE DEVALUATION/PAST SEVERAL DAYS RESUMES// TRADE TALKS NOT DOING TOO GOOD   : /ONSHORE YUAN TRADING STRONGER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING MUCH WEAKER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

 

 

 

3A/NORTH KOREA/SOUTH KOREA

i)North Korea/South Korea/USA/

Trump threatens bigger than ever war games if the Korean talks fail.  The USA is blaming the stalling of talks on China

( zerohedge)

 

 

 

b) REPORT ON JAPAN

3 C/  CHINA

i)This afternoon: just what we needed:  Report that Trump will proceed with the next 200 billion in China tariffs:

stocks plummet, yuan falls, commodities fall but gold holds

(courtesy zerohedge)

ii)Interesting:  the yuan is becoming more volatile than the Euro.  However when you look at gold per yuan there is no volatility whatsoever.  Rickards has pointed that out to us and it is no doubt true.  China is paying more attention to gold than the worthless USA dollar.

( zerohedge)

iii)The data coming from China is now more fraudulent than ever and as such as we must not pay too much attention to their fudging

( zerohedge)

4/EUROPEAN AFFAIRS

i)Italian 10 yr bond yield hits 3.20% as the world is reacting to the turmoil in the world

( zerohedge)

ii)This is good:  The EU will be willing to scrap all car tariffs to zero as long as the USA does the same. Trump stated previously that he would be willing to do so.

( zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)TURKEY

The Deputy Central banker for Turkey quits leaving just Erdogan’s son in law as the only visible head.  That caused the Turkish lira to plummet to 6.84 but it has now stabilized at 6.75..very dangerous.  Remember anything over 7.1 and the banks fry.

( zerohedge)

Iran/EU/Emerging markets/USA

The following commentary is a must must read.. Brandon Smith is one smart cookie. He states that what is really going on is under the cover of trade wars is the de dollarization of the world.  Iran, Russia and the EU are all seeking ways to avoid the use of the dollar

again a must read..

( Brandon Smith/Alt-Market.com)

iii0RUSSIA/USA/SYRIA

a)Lavrov warns the west not to obstruct any anti terror operations as a new assault on Idlib province is hours away

( zerohedge)

b)How is this for statesmanship?:  The Russians invite the USA to a meeting where they owed that al Qaeda insurgents were planning a false flag chemical attack in order to provoke the west to attack

(courtesy zerohedge)

6. GLOBAL ISSUES

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

i)SOUTH AFRICA

What a mess!! the Rand tumbles to almost 15 to one as the government warns of a “catastrophe’ unless their criminal land reform is allowed.  Believe it or not but the UK government and the IMF are agreeing to this confiscation if it is legal?????..confiscation without compensation????

( zerohedge)

ii)Argentina

 
Argentina in trouble this morning as the Central Bank of Argentina hiked rates to 60% trying to stop the Peso collapse which just hit 39 to one. This just about kills all business inside Argentina and no doubt we will see defaults occurring with reckless abandon
( zerohedge)
iii(This afternoon:  Argentinian Peso collapses to 40. to one and no help in sight.  The IMF has previous experiences with Argentina and all ended in failure.

( zerohedge)

iv) Brazil

first, South Africa, then Argentina and now Brazil, as the real crashes to near record lows of 4.20 to the dollar.

As we pointed out to you, as soon as the real rises above 4:1 to the dollar, contagion will run rampant.

It sure seems that this is the case

(courtesy zerohedge)

 

 

9. PHYSICAL MARKETS

We have highlighted this story for you in the body of my commentary under emerging nations. Argentina raises rates to 60% to stop the Peso slide

(courtesy London’s financial times/GATA)

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

 

i)Market trading /GOLD/MARKET MOVERS:

MARKET TRADING

 

ii)Market data

Important points to take away from this new report:

1/ spending is exceeding income

2. government income is exceeding private sector income

3 core PCE, the favourite number for the Fed has reached its coveted 2% and thus the Fed must raise rates despite the upcoming train wreck in the economy.

( zerohedge)

 

 

iii)USA ECONOMIC/GENERAL STORIES

a)How could this be possible?:  Bankers ..who are fine and upstanding citizens doctoring their expense receipts!!
Wells Fargo fires over a dozen bankers who engaged in this type of fraudulent activity
( zerohedge)

 

b)is this the spark that crashes the bond market??… as we are witnessing many fallen angels like that of Ford which is one notch above junk.  The market just does not want to invest in any of these bonds with yields at the lower end of the spectrum

(courtesy zerohedge)

c)TRUMP’S latest interview:

  1. does not regret appointing Powell but wants him to help him against other nations in the trade war
  2.  Sessions is safe until the election and then he is probably out
  3.  will pull out of the WTO if they do not help the uSA in trade/zerohedge

iv)SWAMP STORIES

a)I brought you this story yesterday but it is well worth repeating. We now have a whistleblower who basically exposed the entire fake Russia election interference probe.  This is the “genesis” of how Obama and his team, tried to get Hillary elected and when that failed, they have tried to bring Trump down.

please read slowly to understand how this mess began

( Sara Carter)

b)Trump unleashed on CNN’s Carl Bernstein

( zerohedge)

c)Trump slams the heads of CNN and NBC

( zerohedge)

d)Quite comical after Lanny Davis admits that he was the CNN source and he now states that his client has no knowledge that Trump knew of the Trump Tower meeting.  Bernstein: I stand by my reporting!!

No wonder CNN ratings are plummeting

 

( zerohedge)

Let us head over to the comex:

 

The total gold comex open interest FELL BY A CONSIDERABLE SIZED 7075 CONTRACTS UP to an OI level 472,208 WITH THE FALL IN THE PRICE OF GOLD ($2.90 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 5458 EFP CONTRACTS WERE ISSUED:

OCTOBER: 0 EFP’S AND DECEMBER:  5458 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  5458 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 LOST THE FOLLOWING TODAY ON OUR TWO EXCHANGES: A 1617 TOTAL CONTRACTS IN THAT 5458 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST 7075 COMEX CONTRACTS.

NET LOSS ON THE TWO EXCHANGES:  1617 contracts OR 161700  OZ OR 5.029 TONNES.

Result: A HUGE SIZED  DECREASE IN COMEX OPEN INTEREST WITH THE SMALL FALL IN PRICE/ YESTERDAY (ENDING UP WITH THE LOSS IN PRICE OF $2.90). THE  TOTAL OPEN INTEREST LOSS ON THE TWO EXCHANGES:  1617 OI CONTRACTS..

We are now in the active contract month of AUGUST. For the August contract month, we lost 71 contracts to stand at 31 contracts. The number of notices filed for yesterday was 62 contracts so we lost 9 contacts or an additional 900 oz will not stand at the comex as these investors morphed into London based forwards and received a fiat bonus for their efforts.

 

 

AFTER AUGUST, SEPTEMBER LOST 281 CONTRACTS AND THUS FALLS TO  619 CONTRACTS.

THE NEXT ACTIVE DELIVERY MONTH IS  OCTOBER AND HERE THE OI LOST 3179 CONTRACTS DOWN TO 53,088 CONTRACTS. DECEMBER SAW ITS OPEN INTEREST FALL BY 4056 CONTRACTS DOWN TO 357,638.

WE HAD 28 NOTICES FILED AT THE COMEX FOR 2800 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.

FOR THE UPCOMING SEPT GOLD CONTRACT MONTH;

ON AUGUST 30.2017: (1 MORE READING DAYS BEFORE FIRST DAY NOTICE) 1026 CONTRACTS WERE OPEN FOR THE UPCOMING SEPT CONTRACT VS TODAY, AUG. 30.2018: (2 MORE READING DAYS) 619

FOR COMEX SEPT/2017  FIRST DAY NOTICE GOLD STANDING:  80,700 OZ OR 2.696 TONNES.

BY THE END OF SEPTEMBER:  57,700 OZ OR 1.797 TONNES FINALLY STOOD AS THE OTHERS MORPHED INTO LONDON BASED FORWARDS.

 

 

Trading Volumes on the COMEX

PRELIMINARY COMEX VOLUME FOR TODAY: 268,755  contracts

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  255,871 contracts

 

 

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And now for the wild silver comex results.

Total silver OI FELL BY A HUMONGOUS SIZED 12,050 CONTRACTS FROM 227,329 DOWN TO 215,279 (AND CONSIDERABLY FURTHER FROM THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  (THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S OI COMEX LOSS OCCURRED WITH A 10 CENT LOSS IN PRICING.AS WE MUST HAVE HAD CONSIDERABLE BANKER AND HEDGE FUND SHORT COVERING

WE ARE NOW INTO THE NON – ACTIVE DELIVERY MONTH OF AUGUST, WE WERE  INFORMED THAT WE HAD A GOOD SIZED 2916 EFP CONTRACTS: FOR AUGUST: 0 EFP CONTRACTS, FOR SEPT:  125 CONTRACTS  AND FOR DECEMBER: 2719 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: 2916.  ON A NET BASIS WE LOST 9134 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED 12,050 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 2916 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET LOSS ON THE TWO EXCHANGES:  9134 CONTRACTS…AND ALL OF THIS ACTION OCCURRED WITH A TINY 10 CENT LOSS?????

 

.

FOR THE FRONT MONTH OF AUGUST WE HAD A NET LOSS OF 1 CONTRACT LOWERING TO 1 CONTRACTS. WE HAD 1 NOTICES FILED YESTERDAY SO WE GAINED 0  CONTRACTS STANDING OR AN ADDITIONAL NIL 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 19,087 contracts DOWN to 13,071.  October LOST 24  contracts to stand at 612

After October, the next big delivery month is December and here the OI rose by 6785 contracts up to 180,021 contracts.

We had notice(s) filed for 5,000 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.

 

AND NOW FOR THE ACTIVE SEPTEMBER SILVER CONTRACT AND COMPARISON TO LAST YR:

 

AUGUST 30.2017:(1 MORE READING DAYS) 14,125 OPEN INTEREST CONTACTS STILL OPEN FOR THE UPCOMING SEPT ACTIVE CONTRACT MONTH VS TODAY AUG 30.2018:(1 MORE READING DAYS)  13,071 CONTRACTS.

 

ON FIRST DAY NOTICE FOR THE SEPT/2017 SILVER CONTRACT MONTH:  20.515 MILLION OZ STOOD FOR DELIVERY AND BY MONTH’S END:  A HUGE 32.875 MILLION OZ WAS THE FINAL STANDING AS WE WERE WELL INTO THE PHENOMENON OF QUEUE JUMPING IN SILVER

 

 

 

 

 

 

 

FINAL standings for AUGUST/GOLD

AUGUST 30-/2018.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
nil oz
Deposits to the Dealer Inventory in oz NIL oz
Deposits to the Customer Inventory, in oz  

nil

oz

 

 

No of oz served (contracts) today
28 notice(s)
 2800 OZ
No of oz to be served (notices)
3 contracts
(300 oz)
Total monthly oz gold served (contracts) so far this month
2414 notices
241400 OZ
7.5085 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

today we have a tiny pulse at  the comex but as usual zero gold enters the comex

THIS IS RATHER SURPRISING:  FOR THE SECOND STRAIGHT BIG DELIVERY MONTHS 
I.E. JUNE AND AUGUST, NO GOLD ENTERS THE COMEX TO SETTLE UPON LONGS STANDING FOR DELIVERY AND NO ACTIVITY WHATSOEVER WITH RESPECT TO INVENTORY CHANGES.
we had 1 kilobar transaction/
We had 0 inventory movement at the dealer accounts
total inventory deposit into the dealer accounts:  NIL  oz
total inventory withdrawals out of dealer accounts; nil oz
we had 0 withdrawals out of the customer account:
total customer withdrawals:  nil oz
we had 0 customer deposit
total customer deposits: nil oz
we had 2 adjustment
and both indicate a settlement for gold:
i) Out of I -D;  2314.800 oz was adjusted out of the dealer and in to the customer account of Int. Delaware
(72 kilobars)
ii)out of JPMorgan; 16,138.56 oz was adjusted out of the dealer and this landed into the customer account of JPMorgan

For AUGUST/2018:

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

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To calculate the INITIAL total number of gold ounces standing for the AUGUST. contract month, we take the total number of notices filed so far for the month (2414) x 100 oz or 241400 oz, to which we add the difference between the open interest for the front month of AUGUST. (31 contracts) minus the number of notices served upon today (28 x 100 oz per contract) equals 241,700 OZ OR 7.517 TONNES) the number of ounces standing in this non active month of AUGUST

 

Thus the INITIAL standings for gold for the AUGUST/2018 contract month:

No of notices served (2414 x 100 oz)  + {(31)OI for the front month minus the number of notices served upon today (28 x 100 oz )which equals 241,700 oz standing OR 7.517 TONNES in this  active delivery month of AUGUST.

WE LOST 9 COMEX CONTRACTS OR AN ADDITIONAL 900 OZ WILL NOT STAND AS THESE GUYS MORPHED INTO LONDON BASED FORWARDS AND RECEIVED A FIAT BONUS FOR THEIR EFFORTS.

 

 

 

 

 

THERE ARE ONLY 8.219 TONNES OF REGISTERED COMEX GOLD AVAILABLE FOR DELIVERY AGAINST 7.517 TONNES STANDING FOR AUGUST  

 

 

 

total registered or dealer gold:  264,270.665 oz or   8.219 tonnes
total registered and eligible (customer) gold;   8,430,566.702 oz 262.22 tonnes

IN THE LAST 24 MONTHS 93 NET TONNES HAS LEFT THE COMEX.

end

And now for silver

AND NOW THE AUGUST DELIVERY MONTH

AUGUST FINAL standings/SILVER

AUGUST 30/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
 1,435,878.01 oz
 int. Delaware
Brinks
HSBC
Scotia

 

 

Deposits to the Dealer Inventory
357,169.06
oz
Brinks
Deposits to the Customer Inventory
1,825,739.600 oz
CNT
Delaware
No of oz served today (contracts)
1
CONTRACT(S)
(5,000 OZ)
No of oz to be served (notices)
0 contract
(NIL oz)
Total monthly oz silver served (contracts) 1213 contracts

(6,065,000 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 1 inventory movement at the dealer side of things

i) Into the dealer Brinks:  357,169.060 oz

total dealer deposits: 357,169.06 oz

total dealer withdrawals: nil oz

we had 2 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)

 

 

ii) Into CNT:::  1,824,760.700 oz

iii) Into Delaware: 978.900 oz

 

 

 

 

 

 

total customer deposits today: 1,825,739.600 oz

we had  4 withdrawals from the customer account;

i) Out of Int- Delaware: 20,225.110 oz

ii) Out of Brinks:  159,996.930 oz

iii) Out of HSBC: 1,155,119.230 oz

iv) Out of Scotia:  100,536.740

 

 

 

 

 

total withdrawals: 1,435,878.01 oz

we had 1  adjustment

i) Out of Delaware:

292,142.195 oz was adjusted out of the customer and into the dealer of Delaware

 

 

 

 

 

 

total dealer silver:  84.261 million

total dealer + customer silver:  292.986 million oz

The total number of notices filed today for the AUGUST. contract month is represented by 1 contract(s) FOR 5,000 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 1213 x 5,000 oz = 6.065,000 oz to which we add the difference between the open interest for the front month of AUGUST. (1) and the number of notices served upon today (1 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the AUGUST/2018 contract month: 1213(notices served so far)x 5000 oz + OI for front month of AUGUST(1) -number of notices served upon today (1)x 5000 oz equals 6,065,000 oz of silver standing for the AUGUST contract month

WE GAINED 0 CONTRACTS OR AN ADDITIONAL NIL OZ WILL STAND FOR DELIVERY AT THE COMEX AS THESE GUYS REFUSED TO MORPH INTO A LONDON BASED FORWARDS

 

 

 

 

 

 

 

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ESTIMATED VOLUME FOR TODAY:  88.254 CONTRACTS   

 

 

CONFIRMED VOLUME FOR YESTERDAY: 135,028 CONTRACTS..criminal  

 

YESTERDAY’S CONFIRMED VOLUME OF 135,028 CONTRACTS EQUATES TO 675 million OZ  OR 96.4.% 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 -3.64.% (AUGUST 28/2018)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -1.28% to NAV (AUGUST 28/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -3.64%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

3.SPROTT CEF.A FUND (FORMERLY CENTRAL FUND OF CANADA):

NAV 12.23/TRADING 11.80/DISCOUNT 3.41.

END

And now the Gold inventory at the GLD/

AUGUST 30/WITH GOLD DOWN $6.90: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 759.87 TONNES

AUGUST 29/WITH GOLD DOWN $2.90 (COMEX TO COMEX BUT UP 6.00 DOLLARS FROM ACCESS CLOSING) THE CROOKS RAIDED THE COOKIE JAR ONCE AGAIN TO THE TUNE OF 4.71 TONNES/INVENTORY RESTS AT 759.87 TONNES AFTER THE WITHDRAWAL.

AUGUST 28/WITH GOLD DOWN $1.60: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 764.58 TONNES

AUGUST 27/WITH GOLD UP ANOTHER $3.00: ANOTHER SURPRISE WITHDRAWAL OF 2.65 TONNES FROM THE GLD/SHAREHOLDERS OF GLD ARE DUMB OWING THIS CRAP/INVENTORY RESTS AT 764.58 TONNES

AUGUST 24/WITH GOLD UP $18.65 TODAY/A SURPRISE WITHDRAWAL OF 1.53 TONNES FROM THE GLD/INVENTORY RESTS AT 767.23 TONNES

AUGUST 23/WITH GOLD DOWN $9.20: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 768.70 TONNES

AUGUST 22/WITH GOLD UP $3.45: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTSAT 768.70 TONNES

AUGUST 21: WITH GOLD UP $5.75/A  BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 3.54 TONNES/INVENTORY RESTS AT 768.70 TONNES

AUGUST 20/WITH GOLD UP $10.20./ANOTHER HUGE WITHDRAWAL OF 1.17 TONNES FROM THE GLD/INVENTORY RESTS AT 772.24 TONNES

 

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

 

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AUGUST 30/2018/ Inventory rests tonight at 759.87 tonnes

*IN LAST 446 TRADING DAYS: 171.14 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 346 TRADING DAYS: A NET 14.6 TONNES HAVE NOW BEEN REMOVED FROM GLD INVENTORY.

 

end

 

Now the SLV Inventory/

AUGUST 30/WITH SILVER DOWN 20 CENTS TODAY, A BIG CHANGE IN SILVER INVENTORY: A DEPOSIT OF 742,000 AT THE SLV.INVENTORY RESTS AT 329.856 MILLION OZ/

AUGUST 29/WITH SILVER DOWN 10 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.104 MILLION OZ/

AUGUST 28/WITH SILVER DOWN 5 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.104 MILLION OZ/

AUGUST 27/WITH SILVERUP 6 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.104 MILLION OZ/

AUGUST 24./WITH SILVER UP 26 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.104 MILLION OZ/

AUGUST 23/WITH SILVER DOWN 20 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.104 MILLION OZ/

AUGUST 22/WITH SILVER DOWN 1 CENT/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.104 MILLION OZ/

AUGUST 21/WITH SILVER UP 2 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.104 MILLION OZ/

AUGUST 20/WITH SILVER UP 6 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/.INVENTORY RESTS AT 329.104 MILLION OZ.

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/

 

 

 

AUGUST 30/2018:

Inventory 329.856 MILLION OZ

 

6 Month MM GOFO 1.96/ and libor 6 month duration 2.53

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

G0FO+ 1.96

 

libor 2.53 FOR 6 MONTHS/

GOLD LENDING RATE: .57%

XXXXXXXX

12 Month MM GOFO
+ 2.53%

LIBOR FOR 12 MONTH DURATION: 2.83

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.30

end

 

 

Major gold/silver trading /commentaries for THURSDAY

GOLDCORE/BLOG/MARK O’BYRNE.

 

 

VIDEO: “Financial War” Deepens as Russia Buys Gold and Dollar Hegemony At Risk

– “This is a financial war … Russia is dumping Treasuries to get out from under dollar hegemony” – Rickards on CNN Money
– Russia ramping up gold buying and has “tripled gold reserves in 10 years,” from 600 to almost 2,000 tonnes
– “Russia is pushing back” against U.S. sanctions using cyber financial warfare and acquiring gold bullion as a hedge
– “The dollar is in long-term decline” and it may follow the British pound which lost its reserve currency status between 1913 and 1944
– “Alternate payment systems” as proposed by German foreign minister are being created right now and it “could affect the US dollar very rapidly”


Transcript From 3 Minute Gold News 

FINANCIAL WAR WITH RUSSIA

The Russian economy is the 12th biggest in the world and it’s one of the three largest natural resource exporters. So US sanctions are having some effect but the Russian Central Bank is handling the situation very well.

It’s important to note that this is a two-way street. There’s a little truth in the idea that the US is omnipotent and can throw sanctions on Russia to get what they want, but Russia is pushing back.

Putin’s not the kind of guy to stand still and take it.

Russia’s response to sanctions is asymmetric (so not in the same way as the US). They meddled in the 2016 election, they’ve done cyber financial warfare, they’ve put sanctions on the U.S. But Russia’s most important response has been to dump US Treasuries and to buy gold in order to get out from under the US dollar hegemony.

This is a financial war and it’s been going on for a long time.

GOLD

Russia added almost 29 tonnes of gold to its reserves in July. Their central bank now owns gold worth an estimated $76 billion.

This helps Russia against these sanction.

Russia just passed China in their gold buying and so that’s caught the attention of many. Plus they’re getting close to accumulating the nice round figure of 2,000 tonnes.

Russia has been accumulating physical gold for ten years now.

Ten years ago their reserves were 600 tonnes of gold and now they have almost 2,000 tonnes.

They’ve tripled their holdings.

The gold market is funny because while it’s liquid, so you can always buy or sell, it’s also thinly traded.

That means buying and selling can impact the market easily and change the price. (You don’t want to buy too much too fast because others will rush in and start buying also and the price will lift quickly because of it.)

Russia has a standing order to buy gold. They’ve let their dealers know that they want to buy consistently but not too much at once. So they buy 10 tonnes or 20 tonnes; a small amount every month.

They’ve been transparent about it, which is smart, so they don’t shock the market.

But 10 – 20 tonnes a month for ten years is how they got up to 2,000 tonnes. This has been going on for a very long time.

In 2009 Jim facilitated a financial war game for the US Pentagon, and he warned the Pentagon at the time that countries would start accumulating physical gold.

He got laughed at by the Harvard professors but it’s turned out to be exactly right.

US DOLLAR WORLD RESERVE CURRENCY STATUS

The dollar’s position right now is very strong. About 60% of global reserves are held in US dollars. It’s about 80% of global payments and almost 100% of global oil pricing.

You could look at that and say it’s impregnable and you can’t take it down.

But you could have said something similar about the United Kingdom’s pound sterling in 1913. Then within a year, with the outbreak of World War I the pound sterling was already into a long term decline. By 1944 at Bretton Woods it was almost a footnote.

So these things don’t change overnight, but they can change quickly.

THE NEW AXIS OF GOLD

What’s important is that Russia is adding to their gold reserves. So is China. So is Turkey. So is Iran and others.

Jim has talked to high up officials at the Pentagon, the Treasury and the Federal Reserve. The Pentagon understands what Jim’s saying but they don’t have any authority over the dollar. The Treasury seems to be asleep at the switch, and the intelligence community is lethargic about gold.

Jim talked to the highest ranking officer in the intelligence community and the officer said, “Oh well, somebody’s got to own it.” Like it was a yard sale or used furniture sale, and no big deal.

The big picture is that all of these countries are trying to get out from under the US dollar hegemony.

And that’s going to happen.

When it does the power of the US to impose sanctions will be gone.

They are all building alternative payment systems to the US dollar system of SWIFT.

The German foreign minister said the other day that Germany needs an alternate payment system.

CRYPTOCURRENCIES

One way for these countries to get out from under the US dollar payment system is to create their own cryptocurrencies.

Not Bitcoin (Jim doesn’t like for reasons covered in past 3 Min. Gold News blogs), but they could use a cryptocurrency with distributed ledger between China and Russia – imagine a Xi coin and a Putin coin – denominated in SDRs (Special Drawing Rights), which is the world money that is created by the IMF (International Monetary Fun).

They could back their new digital coins with gold. And the US dollar would not be involved in that scenario.

This could happen if the US doesn’t reassert dollar hegemony.

One good way for them to do this would be for the US to buy more gold. Jim doesn’t expect them to do this but that would be part of his advice to them.

ALTERNATE SYSTEMS

These alternate payment systems are being created right now. It’s not science fiction and it could affect the US dollar very rapidly.

Transcript of CNN Money Interview with Jim Rickards Courtesy of 3 Minute Gold News

 

News and Commentary

Gold steady as dollar dips; rate hike expectations cap gains (Reuters.com)

Stock Rally Fizzles in Asia; Dollar Holds Retreat (Bloomberg.com)

Pending home sales stumble as housing market momentum wanes (MarketWatch.com)

U.S. second-quarter GDP growth raised to 4.2 percent; consumer spending cut (Reuters.com)

Hunger games: middle-class Venezuelans are liquidating savings to stockpile food, as inflation hits 700 per cent (SCMP)


Source: Bloomberg

Video: Gold Is Excellent Way to Hedge for Longer Term, Says BNP Paribas’ Shing (Bloomberg.com)

Video: Why The Gold Market Looks Poised For Reversal (PeakProsperity.com)

Emerging countries snap up gold to cut dollar dependence (Nikkei.com)

Eleven Reasons Why I Am Super Bullish On Gold and Silver (GoldSeek.com)

Venezuela’s economy collapses: All your questions answered (IndianExpress.com)

There will be a fake Brexit, but it will fool nobody (ClaudioGrass.ch)

 


Gold Prices (LBMA AM)

29 Aug: USD 1,204.30, GBP 935.14 & EUR 1,032.33 per ounce
28 Aug: USD 1,212.75, GBP 939.88 & EUR 1,037.02 per ounce
24 Aug: USD 1,189.95, GBP 928.76 & EUR 1,029.43 per ounce
23 Aug: USD 1,187.30, GBP 923.24 & EUR 1,027.61 per ounce
22 Aug: USD 1,196.85, GBP 928.25 & EUR 1,032.88 per ounce
21 Aug: USD 1,194.10, GBP 931.28 & EUR 1,036.12 per ounce

Silver Prices (LBMA)

29 Aug: USD 14.69, GBP 11.40 & EUR 12.60 per ounce
28 Aug: USD 14.90, GBP 11.56 & EUR 12.74 per ounce
24 Aug: USD 14.62, GBP 11.37 & EUR 12.63 per ounce
23 Aug: USD 14.63, GBP 11.34 & EUR 12.62 per ounce
22 Aug: USD 14.81, GBP 11.49 & EUR 12.77 per ounce
21 Aug: USD 14.78, GBP 11.52 & EUR 12.83 per ounce


Recent Market Updates

– Will Indebted Nations Globally Follow Venezuela Into Hyperinflation?
– End Of Dollar Hegemony May Happen Soon and Badly Impact Indebted America
– 10 Incredible Photos From Venezuela Show The Disastrous Risks Of Currency Devaluation
– This Week’s Golden Nuggets
– Video: Is Silver Set for a Massive Breakout?
– Banks Now Long Gold, Short Dollar. What Do They Know?
– Russia Buys 800,000 Ounces Of Gold In July
– Gold Season – Is This It?
– This Week’s Golden Nuggets
– 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

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Mark O’Byrne
 
end
 
 
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(Andrew Maguire)

 Dear Harvey Organ,

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END

 

The following is self explanatory

(courtesy GATA/Chris Powell and Harvey Organ)

GATA asks bank regulator to check risks of gold

futures maneuver

 Section: 

12:21p ET Sunday, June 10, 2018

Dear Friend of GATA and Gold:

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

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

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

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

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

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

* * *

May 5, 2018

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

Dear Comptroller Otting:

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

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

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

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

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

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

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

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

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

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

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

Sincerely,

CHRIS POWELL
Secretary/Treasurer

HARVEY ORGAN
Consultant

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

end

Finally, they replied and it was a complete brush off

(courtesy zerohedge)

Currency comptroller brushes off GATA’s inquiry on

gold, silver EFPs

 Section: 

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

We have highlighted this story for you in the body of my commentary under emerging nations. Argentina raises rates to 60% to stop the Peso slide

(courtesy London’s financial times/GATA)

Argentina raises interest rate to 60% after currency resumes slide

 Section: 

By Colby Smith
Financial Times, London
Thursday, August 30, 2018

Argentina’s central bank pumped up interest rates by 15 percentage points to 60 percent today after the peso plunged in early trading.

The peso dropped by 15 percent, building on Wednesday’s 7 percent drop — the heaviest since the currency floated in 2015. Today’s selloff leaves the dollar at around ARS39, although trading is volatile.

On Wednesday Argentina’s president Mauricio Macri asked the International Monetary Fund to speed up the disbursement of its $50 billion bailout package. …

… For the remainder of the report:

https://www.ft.com/content/09cc760a-ac59-11e8-89a1-e5de165fa619

end

we have detailed Jim’s Rickards paper with you.  However just to refresh your memory,we will repeat it for you

(courtesy Jim Richards/Daily Reckoning)

World is ganging up against the dollar, Rickards says

 Section: 

10:25a ET Thursday, August 30, 2018

Dear Friend of GATA and Gold:

In a new essay at the Daily Reckoning and an interview with CNN, newsletter editor James G. Rickards discusses the world’s preparations for moving away from the U.S. dollar and U.S. government control over the world financial system.

Rickards’ interview with CNN details Russia’s years-long accumulation of gold and replacement of U.S. Treasuries in its foreign-exchange reserves.

… Dispatch continues below 

Rickards tells CNN that the U.S. Defense Department understands the geopolitical implications of Russia’s move into gold but the U.S. State Department doesn’t seem to care.

His essay at the Daily Reckoning is headlined “The World Is Ganging Up Against the Dollar” and it’s posted here:

https://dailyreckoning.com/the-world-is-ganging-up-against-the-dollar/

His interview on CNN is five minutes long and it’s posted at You Tube here:

https://www.youtube.com/watch?v=TXcLQWfe5x4

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

_____________________________________________________________________________________________________________________________________________________________________________________

Your early THURSDAY 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 DOWN TO 6.8316/HUGE DEVALUATION FOR THE PAST FOUR WEEKS RESUMES/CHINESE COMING TO USA FOR TRADE TALKS IN NOVEMBER //OFFSHORE YUAN:  6.8432  /shanghai bourse CLOSED DOWN 31.56 POINTS OR 1.14% /HANG SANG CLOSED DOWN 259.39 POINTS OR 0.89%
2. Nikkei closed UP 21.25 POINTS OR 0.09%/USA: YEN RISES TO 111.49/

3. Europe stocks OPENED RED

/USA dollar index RISES TO 94.61/Euro FALLS TO 1.1691

3b Japan 10 year bond yield: RISES TO . +.11/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 111.49/ 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:: 69.87  and Brent: 77.75

3f Gold DOWN/JAPANESE Yen DOWN/ CHINESE YUAN  DOWN

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO +.380%/Italian 10 yr bond yield DOWN to 3.15% /SPAIN 10 YR BOND YIELD UP TO 1.46%

3j Greek 10 year bond yield RISES TO : 4.28

3k Gold at $1204.75 silver at:14.67   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 8 /100 in roubles/dollar) 68.12

3m oil into the 69 dollar handle for WTI and 77 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 111.49 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 0.9696 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1337 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 +0.38%

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 2.88% early this morning (THIS IS DEADLY TO ALL MARKETS). Thirty year rate at 3.02%

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

TURKISH LIRA:  DOWN BADLY TO 6.4513

 

Global Markets Slide As Trade War Fears Return, EM Crisis

Grows

The rally that saw US stocks hit a record high for 4 consecutive sessions took a breather overnight as S&P futures and European stocks followed Asian shares lower on Thursday, as trade and geopolitical concerned re-emerged, hurting bullish sentiment.

Stock markets and major government bond yields rose in recent weeks on hopes that a global trade war could be averted, particularly with the leaders of the United States and Canada optimistic they could reach new North American Trade Agreement by Friday. Trump said earlier talks with Canada on overhauling Nafta are going well, while Canadian PM Trudeau said his government his trying to reach an agreement with the U.S. this week but won’t sacrifice its goal of getting the right deal

But with tariffs beginning to hurt the Chinese economy, Asian stocks lost some of their gains and European shares followed suit on Thursday on concerns over trade relations between the world’s two largest economies.

“In all honestly, the NAFTA situation probably reflects a desire to get the agreement over the line before elections in Mexico and the mid-term vote in the U.S.,”said OANDA analyst Craig Erlam. “It doesn’t mean the U.S. will look for a quick solution with China. There’s still a long way to run with these trade situations, and I wouldn’t be surprised if we see more tariffs on more goods before it gets better.”

Indeed, while NAFTA may be resolved as soon as Friday, the US-China trade is only set to worsen as US tariffs on another $200 billion of Chinese goods are expected to take effect next month.

Geopolitical fears also creeped back in, with the Korean Peninsula once again back in the headlines after President Trump accused  China of undermining U.S. efforts to pressure North Korea into giving up its nuclear weapons, indicating his trade war with Beijing is starting to exacerbate geopolitical tensions.

As a result, the mood turned sour in Asia first, where the MSCI index of Asia-Pacific shares ex-Japan dropped 0.3%, with broad gains across the region offset by losses in China which dropped the most in nearly 2 weeks. The Shanghai Composite Index slid 0.9%, closing at session lows and set for its biggest fall since Aug. 17, as tech shares slide and the National Team was clearly absent; The ChiNext Index of small-cap and tech stocks -1.3%, while shares in Hong Kong also fall, with Hang Seng Index -0.9%; Tencent lost 1.3% as biggest drag on the measure.

Earlier, a Reuters poll showed activity among China’s manufacturers probably slowed for the third straight month in August.

“Investors are relatively pessimistic and cautious for now amid low levels of trading volume, as there are still concerns over the development of the Sino-U.S. trade spat,” said Yan Kaiwen, an analyst with China Fortune Securities.

After a serious of aggressive interventions last week by the PBOC halted the Yuan slide, the offshore Yuan has resumed its slide in recent days. The CNH slid even though the PBOC strengthened the yuan fixing by 0.06% to 6.8113 per dollar, stronger than average estimate; central banks skips open-market operations. As Bloomberg reports, offshore yuan turnover jumped to a record in July on the CBOE global markets platform, spurred by President Trump’s attack on Chinese currency practices and the trade war

In Europe equity markets open lower and sell off further, real estate stocks lag after negative comments on the sector by Morgan Stanley; the Europe Stoxx 600 index dropped 0.4 percent on Thursday, dragging the MSCI world equity index off a five-month high. Miners led the retreat as most sectors fell on. Treasuries and most European bonds edged higher.

Today’s profit taking is not unexpected: equities have rallied as August draws to a close, with an index of world stocks heading for a second weekly gain. Central-bank support in China has gone some way to stabilizing the currency and stemming a rout in Shanghai stocks, though worries remain concerning the U.S.-China trade spat and the pace of monetary tightening in the U.S. Looking at the future, sellside analysts are increasingly seeing only upside.

Back to the overnight market, Asia was also the center of some of the biggest overnight currency volatility after the Australian dollar slumped after second-quarter business investment and building approvals were much worse than expectations, while New Zealand’s currency tumbled as business confidence hit a 10-year low. Australia’s currency may fall to 71.6 U.S. cents over next few months as investment conditions in the nation deteriorate, according to Kyle Rodda, market analyst at IG Group in Melbourne

It wasn’t just Asia, however, with broad risk-off sentiment emerging across all markets before tentative stabilization into the North American crossover. While there was no real catalyst cited for the moves, EM weakness was prominent again especially in currencies, as the USDZAR spiked higher through 14.50, driven partly by weakness in local stock market as MTN falls 18% due to Nigeria demanding a $8.1b refund.

The British pound extended its gains against the euro after recording its biggest gain in seven months on Wednesday. The gains came as European Union negotiator Michel Barnier signaled an more accommodative stance toward London in ongoing talks. “It is a slight change in tone from Barnier and a sign that the EU is very aware of the Brexit deadline and they don’t want a no-deal Brexit any more than we do,” said OANDA’s Erlam.

The euro struggled to sustain an early advance as German regional inflation data for August showed slowing price growth in some areas compared with the previous month, as noted. German Regional CPIs y/y (National Est. 2.0%): Saxony 2.0%, Brandenburg 2.0%, Bavaria 2.2%, Baden Wuert. 2.1%, Hesse 1.7%, NRW 2.0%; additionally Saxony Core CPI 1.4% vs 1.5% prev. The common currency failed for a second day to overcome supply above $1.1700 that comes both on a take-profit basis and on fresh positioning, according to two traders in London and Europe

The dollar pared its weekly loss as month-end pressure subsided.

The Turkish Lira accelerated its drop for the 4th day, sending the USDTRY higher by 2.7% and bringing this week’s decline to 9%. Today’s drop was precipitated after Erdogan said that Turkey ” is not without alternatives” and warning that “It’s not possible to make us back down with threats.” Taking another hit at the US, Erdogan said that “some do not hesitate openly stating the fact that they are trying to drive us into a corner through the economy. There are surely structural issues in the Turkish economy. We know these issues and are working to fix them.”

Judging by the plunge in the lira, the market does not seem convinced:  the Lira closed last night -3.0% at 6.469 which is now weaker than where it was on the Friday 3 weeks ago (6.4323) when the panic spread across the market. The only softer closing level was on the following Monday (6.884) but that actually included a big intra-day rally back from the Asian wides. Yesterday was the third day in a row the Lira has weakened (post domestic holidays) while Turkey’s 5yr CDS was also +14.4bps wider and touched 500bps again (recent high was 535.0 on Aug 13).

Meanwhile, yet another emerging market currency is under scrutiny, this time Argentina’s, after the country asked the International Monetary Fund for early assistance, alarming investors and hurting the peso and the country’s bond prices. The IMF said it was studying the request from Argentina to speed up disbursement of the $50 billion loan. The Argentinian peso dropped more than 7 percent on Wednesday, its biggest one-day decline since the currency was allowed to float in December 2015. Yields on Argentina’s 100-year bond issued last year rose to its highest level yet at 9.859 percent overnight.

Elsewhere, WTI and Brent futures trade higher following the larger than expected draw in DoE crude inventories while concern looms of tightening supply by year-end. According to the WSJ, Iran’s oil exports are expected to drop from 2.7mln BPD in June to 1.5mln BPD in September ahead of US sanctions (coming into effect on November 5th). Otherwise, news flow for the complex has remained light thus far. Elsewhere, gold is lower on the day, having tested USD 1200/oz to the downside and currently close to the lower end of the range, while copper is on the backfoot amid underperformance in its largest consumer, China.

Expected data include personal income and spending, and jobless claims. Campbell Soup, Dollar General, and Lululemon are among companies reporting earnings.

Market Snapshot

  • S&P 500 futures down 0.2% to 2,909.00
  • STOXX Europe 600 down 0.4% to 384.92
  • MXAP down 0.3% to 166.05
  • MXAPJ down 0.4% to 538.60
  • Nikkei up 0.09% to 22,869.50
  • Topix down 0.03% to 1,739.14
  • Hang Seng Index down 0.9% to 28,164.05
  • Shanghai Composite down 1.1% to 2,737.74
  • Sensex down 0.2% to 38,648.80
  • Australia S&P/ASX 200 down 0.01% to 6,351.76
  • Kospi down 0.07% to 2,307.35
  • German 10Y yield fell 1.4 bps to 0.39%
  • Euro down 0.2% to $1.1681
  • Italian 10Y yield fell 6.1 bps to 2.852%
  • Spanish 10Y yield fell 1.2 bps to 1.452%
  • Brent futures up 0.4% to $77.45/bbl
  • Gold spot down 0.4% to $1,202.35
  • U.S. Dollar Index up 0.1% to 94.69

Top Overnight News

  • President Trump said talks with Canada to overhaul the North American Free Trade Agreement are going well, expressing optimism the two countries could reach a deal this week
  • Trump: “necessary and appropriate” to maintain a 25% tariff on steel imports and 10% on aluminum; allowing some product exclusions for South Korea, Argentina and Brazil
  • New Zealand business confidence extended its decline with sentiment about the general economy sinking to the lowest in a decade. Australian business investment unexpectedly dropped last quarter despite the broader economy showing solid growth and hiring
  • German Regional CPIs y/y (National Est. 2.0%): Saxony 2.0%, Brandenburg 2.0%, Bavaria 2.2%, Baden Wuert. 2.1%, Hesse 1.7%, NRW 2.0%; additionally Saxony Core CPI 1.4% vs 1.5% prev.
  • Euro-area economic confidence continued its slide in August as risks from trade tensions to politics weigh on momentum. The European Commission’s index of household and business sentiment fell for an eighth month to the lowest in a year
  • The IMF said it will consider Argentina’s request to speed up disbursements from a $50 billion credit line as the government seeks to restore investor confidence
  • Barclays Plc has moved its head of Asia Pacific fixed income syndicate to Hong Kong, as China gains more prominence in the region’s dollar-bond market
  • August has historically been a cruel month for emerging markets. A Bloomberg currency index that tracks carry-trade returns from eight emerging markets, funded by short positions in the dollar, suggests this year has been the worst on record
  • Sweden is increasingly under attack by forces trying to influence and disrupt the election in 10 days, Swedish Radio reported
  • The International Monetary Fund said it will consider Argentina’s request to speed up disbursements from a $50 billion credit line as the government seeks to restore investor confidence as peso tumbles
  • The U.K. government said the European Union should compromise or risk a “no deal” Brexit, as the timeline for reaching an agreement slipped back. Michel Barnier, the EU’s chief negotiator, said the EU was prepared to offer Britain an unprecedented partnership
  • The U.S. exempted South Korea, Brazil and Argentina from metal tariffs

Asian equity markets traded mixed as the initial impetus from Wall St where the S&P 500 and Nasdaq posted a 4th consecutive day of records and where sentiment was underpinned by better than expected US GDP data as well as NAFTA optimism, was eventually clouded by weakness in China. ASX 200 (flat) was initially led by outperformance in telecoms on confirmation of the TPG Telecom-Vodafone Hutchison M&A deal although upside in the index was capped by weakness in financials and following disappointing capex data, while Nikkei 225 (+0.1%) gapped above the 23k level at the open which it then failed to sustain. Elsewhere, Shanghai Comp. (-1.1%) and Hang Seng (-0.9%) were subdued amid continued PBoC liquidity inaction and the ongoing US-China trade dispute, while President Trump also blamed China for the difficulties related to North Korea. Finally, 10yr JGBs were lower amid the mild gains in Japan and after the 2yr JGB auction failed to spur demand despite stronger results. PBoC skipped open market operations for a net neutral daily position.

Top Asian News

  • Erdogan Says Turkey Won’t Back Down, Has Alternatives: Anadolu
  • Downloads of Chinese Ride App Didi Tank After Passenger’s Death
  • Varde, Birla Group Create $1 Billion Venture for Stressed Assets
  • Vodafone Shackled Down Under as Unprofitable Venture Joins TPG

European equities are largely on the backfoot (Eurostoxx 50 -0.7%). Germany’s DAX 30 (-1.0%) is underperforming its peers with the likes of German auto names, Deutsche Bank, Commerzbank and heavyweight Bayer pressuring the index. Sector wise, telecom names underperform despite Bouygues (+3.16%) taking a spot at the top of the Stoxx 600 following earnings, with the likes of Vodafone and Telecom Italia weighing on the sector. Material names are also a laggard, in-fitting with price action in the base metal complex, while Elekta (-8.8%) shares plummeted on disappointed figures.

Top European News

  • Panasonic Plans Post Brexit Move From London to Amsterdam
  • Astaldi Bonds Fall After Report Lenders Seeking Restructuring
  • German Unemployment Drops Further as Companies Signal Optimism
  • French Minister Calls for Patience on Impact of Macron Reforms

In Currencies, the GBP saw some loss of momentum on less positive Brexit talk from Germany’s Finance Minister who is unsure whether there will be a withdrawal agreement and doesn’t rule out a disorderly UK departure from the EU, but Sterling remains supported and not too discouraged by weaker than expected mortgage and consumer credit data. Cable is holding around the 1.3000 level vs just shy of 1.3050 at best, while Eur/Gbp has continued its retreat from close to 0.9100 peaks on Wednesday through 0.9000 and testing the 21 DMA around 0.8977. CAD – The Loonie continues to benefit from NAFTA deal prospects and a possible Friday accord along the lines of the US-Mexico agreement, while firm crude prices are also supportive as Usd/Cad trades within a 1.2935-00 range ahead of Canadian GDP data for Q2. EUR – The single currency has retreated after another rally above 1.1700 vs the Greenback on broadly benign German state CPI and Spanish inflation data, but remains underpinned at the top of a daily cloud formation between 1.1655-81. EM – Another day, but more misery for the region’s 2 whipping boys as the Lira and Rand  depreciate further – Usd/Try now over 6.6000 and Usd/Zar around 14.6500. Elsewhere, the Peso has pared some of its NAFTA-related gains to trade below 19.0000 vs the Buck, but its Argentine counterpart is sharply underperforming even though several forms of intervention were deployed on Wednesday to try and stop the rot – Usd/Ars closed almost 8% higher yesterday just under 33.8980.

In commodities, WTI and Brent futures trade higher following the larger than expected draw in DoE crude inventories while concern looms of tightening supply by year-end. According to the WSJ, Iran’s oil exports are expected to drop from 2.7mln BPD in June to 1.5mln BPD in September ahead of US sanctions (coming into effect on November 5th). Otherwise, news flow for the complex has remained light thus far. Elsewhere, gold is lower on the day, having tested USD 1200/oz to the downside and currently close to the lower end of the range, while copper is on the backfoot amid underperformance in its largest consumer, China.

Looking ahead to today we’ve got arguably the most significant data release of the week with the July personal income and spending reports. As part of that, we’ll get the core PCE reading where the market expects a +0.2% mom outturn to result in the first +2.0% yoy (+1.99% unrounded) reading since April 2012. For previously dovish-leaning policymakers such as Chicago Fed President Evans, hitting the Fed’s official inflation target would be an important milestone and add to their confidence that the Fed can continue on its gradual course of rate increases. So worth watching out for.

US Event Calendar

  • 8:30am: Personal Income, est. 0.4%, prior 0.4%; Personal Spending, est. 0.4%, prior 0.4%
    • Real Personal Spending, est. 0.2%, prior 0.3%
    • PCE Deflator MoM, est. 0.13%, prior 0.1%; PCE Deflator YoY, est. 2.3%, prior 2.2%
    • PCE Core MoM, est. 0.2%, prior 0.1%; PCE Core YoY, est. 2.0%, prior 1.9%
  • 8:30am: Initial Jobless Claims, est. 212,000, prior 210,000; Continuing Claims, est. 1.73m, prior 1.73m
  • 9:45am: Bloomberg Consumer Comfort, prior 58.6

DB’s Jim Reid concludes the overnight wrap

The US equity market continues to devour all that’s put in front of it and hatching new records on a regular basis. This week it seems no news continues to be good news with the S&P 500 (+0.57%) and NASDAQ (+0.99%) climbing to fresh new highs last night and the DOW (+0.23%) cutting the gap to the all-time highs to less than 2%. It’s hard to know if this is just liquidity slowly coming back to markets post the holidays or something else completely but there’s hardly  been a plethora of newsflow for markets to feed off this week aside from the few bits and bobs we’ve touched on below. In fact the moves are coming despite a weak session for EM and specifically Turkey and Argentina with the Lira and Peso both depreciating sharply again.

Indeed the Lira closed last night -3.0% at 6.469 which is now weaker than where it was on the Friday 3 weeks ago (6.4323) when the panic spread across the market. The only softer closing level was on the following Monday (6.884 but that actually included a big intra-day rally back from the Asian wides. Yesterday was the third day in a row the Lira has weakened (post domestic holidays) while Turkey’s 5yr CDS was also +14.4bps wider and touched 500bps again (recent high was 535.0 on Aug 13). In fairness there didn’t appear to be one obvious catalyst for yesterday’s move, although the weakest economic confidence reading since 2009 didn’t help, and likewise the CBT’s move to reinstate borrowing limits on overnight transactions failed to inspire confidence.  Instead of addressing its fundamental imbalances by executing orthodox policies like conventional rate hikes and/or going to the IMF, the CBT continues to tweak its other, unconventional policy tools. The move to tighten interbank liquidity comes only two weeks after the central bank took the exact opposite step.

However, the tough day for the Lira was overshadowed by the steep depreciation in the Argentine Peso, which dropped 7.55% versus the dollar to a new all-time low of 33.97. The currency traded at 18.6 at the end of last year – a 45.3% depreciation to now. The immediate catalyst was President Macri’s request for the IMF to speed up disbursements under its current bailout program. Argentina had received $15bn in June and is due for another $3bn next month, but it is now unclear if that will be enough to stabilize the government’s finances amid persistent reserve drain. Policy interest rates are at 40.0%, but, with inflation rising to 31.2% in July, real rates are not tight enough to encourage capital inflows.  The economy is likely to contract this year, and the benchmark Merval stock index is down 27.6% since its January peak in local currency terms, and over 56% in USD terms.

This morning in Asia, equities are trading mixed after paring back earlier gains. Across the region, the Nikkei (+0.16%) and Kospi (+0.05%) are modestly up while the Hang Seng (-0.61%) and Shanghai Comp. (-0.81%) are down as we  type. Futures on the S&P and treasuries are little changed. Meanwhile the US / Canada NAFTA talks seems to be tracking relatively well, with Canadian Foreign Minister Freeland indicating she had productive discussions with US trade representative Lighthizer and there was “a lot of goodwill” from both sides. She added that officials from both sides “will be meeting until very late tonight”. Earlier on, the Canadian PM Trudeau was also cautiously upbeat as he noted “…there is a possibility of getting (a deal) by Friday”, while adding the caveat that “…it’ll hinge on whether or not there is ultimately a good deal for Canada”. As for data, Japan’s July retail sales rose for the ninth straight month and was above market at 1.5% yoy (vs. 1.2% expected).

Looking ahead to today we’ve got arguably the most significant data release of the week with the July personal income and spending reports. As part of that, we’ll get the core PCE reading where the market and our US economists expect a +0.2% mom outturn to result in the first +2.0% yoy (+1.99% unrounded) reading since April 2012. As our colleagues noted, for previously dovish-leaning policymakers such as Chicago Fed President Evans, hitting the Fed’s official inflation target would be an important milestone and add to their confidence that the Fed can continue on its gradual course of rate increases. So worth watching out for.

It would be nice if that data wakes bond markets up as we stumbled upon a fairly interesting stat yesterday about Treasuries. The 10y yield has traded in a remarkably low 21bps intraday range so far this quarter which is tracking to be the lowest for a quarter since 1965 when we only had closing level data. For some perspective the average quarterly range since 2010 is 62bps. This is slightly biased by yields being as low as they are and us only being 2/3rds of the way through the quarter but the MOVE index, which should adjust for low yields, backs up the point somewhat with the index only a few points off the YTD low at 49.9 (low was 45.3 last month in this quarter) compared to the average of 53.8 in 2018 and all-time low of 44.0 made in November last year.

To be fair, Treasuries and wider bond markets were a bit weaker yesterday. The 10y Treasury closed 0.4bps higher at 2.884% while yields in Europe – with the exception of Italy (more on that shortly) – were 2 to 3bps higher.

Coming back to Italy, the relative outperformance for BTPs (-6.2bps) and the FTSE MIB (+0.68%) yesterday appeared to be down to a flurry of headlines initially reported in Italian press La Stampa suggesting that the Italian government  was reaching out to the ECB for a new round of QE designed to defend Italy’s debt from financial speculation (according to Bloomberg) and also avoid a downgrade. The story was later downplayed by Deputy PM Di Maio although this does follow the recent Bloomberg story about Conte winning a pledge from US President Trump about also buying up Italian debt. To be fair these stories feel like a distraction and noise with the much bigger near term issue for markets being the budget proposal next month.

Elsewhere, the other relatively big mover in FX yesterday was Sterling which rallied as much as +1.39% from the lows before closing +1.19% higher. This followed comments from EU Brexit negotiator Michal Barnier that “we are ready… to propose a partnership like there has never been before with any other third country.” This is consistent with the existing EU offer from March and the readout from Barnier’s meeting last week with UK Brexit Minister Raab. It isn’t new news as the EU still has red lines that haven’t changed. Nevertheless, the market took the news as a positive signal that it lowers the odds of a no-deal Brexit scenario. UK rates sold off as well, as the positive rhetoric raised the odds of further BoE action. The market moved up its pricing for the next rate hike to May from August 2019. Meanwhile the German Finance Minister Scholz seems to have maintained his conciliatory tone as he hopes “we can proceed fast” in negotiating a “manageable exit”.

Meanwhile, the main data print yesterday came in the US with the Q2 GDP revised up 0.1 pp to 4.2% qoq saar. Capital expenditures and net exports both improved slightly, more than outweighing a slight downward revision to consumer spending. This confirms the strong trend in the first half of the year, and our economists maintain their forecast for 3.1% qoq growth this quarter. Separately, pending home sales declined 0.7% mom in July and MBA mortgage applications fell last week. Both are noisy series and shouldn’t detract from the economy’s strong underlying trends.

Looking at the day ahead, apart from the aforementioned US core PCE print, we’ll also get flash August CPI for Germany at 13:00 London today (2.1% yoy expected). That will be preceded by German regional CPI data and the official August unemployment rate. At 10:00 London time, the final Eurozone consumer confidence reading for August will be released by the European Commission.

In the UK, we’ll get mortgage, money supply, and consumer credit numbers for July. Second quarter Canadian GDP growth will print later this afternoon, and is expected to show healthy growth of 3.1% qoq saar. Away from the economic data, EU foreign affairs ministers are due to meet at a conference (continuing into Friday) to discuss topics including the Middle East, trans-Atlantic relations, the Iran nuclear deal and North Korea.

 

 

3. ASIAN AFFAIRS

i) THURSDAY MORNING/ WEDNESDAY NIGHT: Shanghai closed DOWN 31.56 POINTS OR 1.14%   /Hang Sang CLOSED DOWN 259.39 POINTS OR 0.89%/   / The Nikkei closed UP 21.25 POINTS OR 0.09%/Australia’s all ordinaires CLOSED UP 0.06%  /Chinese yuan (ONSHORE) closed DOWN  at 6.8316 AS POBC RESUMES SLIGHTLY ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER/Oil UP to 69.87 dollars per barrel for WTI and 77.75 for Brent. Stocks in Europe OPENED RED //.  ONSHORE YUAN CLOSED  DOWN AT 6.8316 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8432: HUGE DEVALUATION/PAST SEVERAL DAYS RESUMES// TRADE TALKS NOT DOING TOO GOOD   : /ONSHORE YUAN TRADING STRONGER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING MUCH WEAKER 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

Trump threatens bigger than ever war games if the Korean talks fail.  The USA is blaming the stalling of talks on China

(courtesy zerohedge)

Trump Threatens “Bigger Than Ever” War Games If Korea Talks Fail; Blames China

President Donald Trump threatened that he could begin joint military exercises with South Korea and Japan that will be “far bigger than ever” if progress stalls on North Korea nuclear talks. Trump also blamed Beijing for the lack of progress on North Korea’s denuclearization, saying China has put North Korea “under tremendous pressure” in response to the trade war Trump between the two nations.

The president issued the warning in a series of tweets on Wednesday afternoon which he described as a White House statement, after complaining that China was hindering the negotiations due to trade disputes with the U.S.

The White House statement, said that the US President “feels strongly” that Pyongyang has been a subject of “tremendous pressure from China because of our major trade disputes with the Chinese Government” and went on to allege that Beijing continues to provide various types of assistance to the North, including “money, fuel, fertilizer and various other commodities.”thus effectively undermining the US policy of “maximum pressure.”

The White House statement asserted that China is providing Pyongyang with “considerable aid, including money, fuel, fertilizer and various other commodities.”

Donald J. Trump

@realDonaldTrump

STATEMENT FROM THE WHITE HOUSE

President Donald J. Trump feels strongly that North Korea is under tremendous pressure from China because of our major trade disputes with the Chinese Government. At the same time, we also know that China is providing North Korea with…

Despite the White House’s failure to reach progress in implementing the loosely worded agreement between North Korean leader Kim Jong-un and Trump, reached at the bilateral summit in June, the statement stresses that Trump believes his relationship with Kim is a “very good and warm one, and there is no reason at this time to be spending large amounts of money on joint US-South Korea war games.”

Donald J. Trump

@realDonaldTrump

…of money on joint U.S.-South Korea war games. Besides, the President can instantly start the joint exercises again with South Korea, and Japan, if he so chooses. If he does, they will be far bigger than ever before. As for the U.S.–China trade disputes, and other…

Donald J. Trump

@realDonaldTrump

…of money on joint U.S.-South Korea war games. Besides, the President can instantly start the joint exercises again with South Korea, and Japan, if he so chooses. If he does, they will be far bigger than ever before. As for the U.S.–China trade disputes, and other…

The statement notes that should the need arise “the President can instantly start the joint exercises again,” both with South Korea and Washington’s other top regional ally, Japan. As with many things Trump, the restarted wargames would be “far bigger than ever before,” the US president warned.

After effectively accusing the Chinese government of foul play on the Korean peninsula, the statement then concludes by saying the bitter trade dispute between the US and China “will be resolved in time” by Trump and “China’s great President Xi Jinping.”

Donald J. Trump

@realDonaldTrump

…differences, they will be resolved in time by President Trump and China’s great President Xi Jinping. Their relationship and bond remain very strong.

Earlier Wednesday, Trump told reporters at the White House negotiations with North Korea are “doing well,” but “China makes it much more difficult.”

The statement comes after US Defense Secretary Jim Mattis indicated earlier this week that although several major US drills with South Korea had been suspended as an act of goodwill, the Pentagon has “no plans to suspend any more.”

In fact, according to South Korea’s JoongAng Ilbo, the U.S. and South Korea internally decided to hold annual air force exercise called Vigilent ACE in December.  U.S. military personnel from America and other overseas bases will participate in joint drill, the paper reported adding that the decision was made before Defense Sec. James Mattis said on Aug. 28 U.S. won’t suspend more joint military drills with South Korean forces.

Trump’s announcement comes just days after Trump called off a trip to North Korea by Secretary of State Michael Pompeo, saying there hadn’t been enough progress in talks aimed at denuclearizing the Korean peninsula. In a series of tweets Friday, Trump said Pompeo would likely return to North Korea after U.S. trade disputes with China were resolved.

North Korea, which has long been irritated by the joint wargames, recently accused Washington of “double-dealing.” The ruling party’s official newspaper reported that the US contingent stationed in Japan has been rehearsing an invasion into North Korea by “staging secret drills involving man-killing special units” while the White House has been “having a dialog with a smile on its face.”

While there has been little progress on North Korea since the milestone summit in June, no effort to end the escalating trade war between the US and China has borne fruit. The recent talks between American and Chinese officials ended without a breakthrough, and it was reported that no follow-up meetings have been scheduled. In the meantime, China vowed to respond “resolutely” to “the unreasonable measures” taken by the US.

The U.S. has been leaning heavily on China to help enforce tougher sanctions imposed last year against Kim Jong Un’s regime because the country is Pyongyang’s largest trading partner and shares a border with the isolated nation. China “is the route to North Korea,” Trump said Wednesday.

The trade war between the U.S. and China is primed to escalate further after their governments failed to make progress in two days of talks last week. The two sides had met with low expectations for the meetings and no further talks had been scheduled, a person familiar with the discussions said.

In the past week, while the two sides were talking, the U.S. slapped tariffs on a further $16 billion in Chinese imports. Retaliation by Beijing will bring the amount of trade affected by the dispute to $100 billion, with more to come. Looming now are new tariffs that Trump has threatened to impose on some $200 billion in annual imports from China, and Beijing’s already-promised retaliation.

“I don’t like to call it a trade war,” Trump said Wednesday according to Bloomberg.

end

3 b JAPAN AFFAIRS

 

3C CHINA

This afternoon: just what we needed:  Report that Trump will proceed with the next 200 billion in China tariffs:

stocks plummet, yuan falls, commodities fall but gold holds

(courtesy zerohedge)

Stocks, Yuan, Commodities Slump On Report Trump To

Proceed With Next $200Bn In China Tariffs

…millions of exuberant stock-buying voices cried out in terror, and were suddenly silenced.

Headlines from The Wall Street Journal that merely confirmed what everyone and their pet rabbit already knew – that $200 billion more China tariffs were set to hit next week as the comment period expires – sparked selling… everywhere.

While WSJ admits that Trump has yet to make up his mind, they report sources say he backs the additional tariffs (which anyone who can fog a mirror would know from his stance for the last month).

US Stocks dumped…

Boeing and CAT crumbled…

Yuan is getting whacked…

Copper is getting clubbed…

 

“surprise” – Trump’s not backing away from China!

end

Interesting:  the yuan is becoming more volatile than the Euro.  However when you look at gold per yuan there is no volatility whatsoever.  Rickards has pointed that out to us and it is no doubt true.  China is paying more attention to gold than the worthless USA dollar.

(courtesy zerohedge)

 

Is China Losing Control? Yuan More Volatile Than Euro

For First Time Ever

For the first time, FX traders are grappling with wilder swings from China than Europe.

As Bloomberg notes, the offshore yuan has been more volatile than the euro all month after first overtaking the shared currency in July, according to 30-day realized data. And while euro uncertainty remains relatively bracketed between 6 and 8 for the last two years, yuan volatility has soared from 2 to almost 9 – the highest since 2015’s devaluation.

The narrow spread (lower pane) shows China is moving to a more “flexible arrangement” when it comes to managing its currency, Bank of America analysts wrote in a note, predicting the yuan will weaken more this year.

For now it appears the temporary respite from Yuan’s freefall, that ‘mysteriously’ occurred right before the US-China trade talks, has begun to lose momentum.

But while Yuan has become increasingly volatile, the realized volatility of gold (when priced in yuan) has collapsed to record lows

Perhaps supporting the idea that the Chinese care more about the ‘stability’ of the yuan relative to gold then to the arbitrary US dollar fiat money.

So is China losing control? Or is this just as they planned?

end

The data coming from China is now more fraudulent than ever and as such as we must not pay too much attention to their fudging

(courtesy zerohedge)

More Fraud Exposed In Chinese Official Econ Data

For years it has been common knowledge that China takes delight in cooking its economic books. Perhaps the most notorious example is the long-standing problem with the country’s GDP figures, where the combined provincial figures do not tally with the National Bureau Of Statistics’ national total (we discussed this most recently in “Data Fraud At Chinese Province Suggests Local GDP Numbers As Much As 20% “Overcooked“).

 

And while to Beijing painting the economy in a perpetually favorable light – China’s GDP is notoriously the least volatile of all economic metrics – the calculations by China’s National Bureau of Statistics are vital for understanding and shaping policy towards the world’s second largest economy, including the basis on which it can be described as such.

“In an authoritarian system there is definitely an incentive for statistics officials to publish data that will please the government. At the same time, however, economic policy that is based on unreliable data can only be deficient and thus leads to outcomes that will not please the government,” said Carsten Holz, professor of economics from the Hong Kong University of Science and Technology, who has closely studied Chinese statistics for years.

Now a new set of concerns about “cooked” numbers has emerged and it centers on areas such as profits from large industrial companies, retail sales, electricity consumption, coal output, and company revenues in cultural and related industries.

Here, as SCMP reports, one of the “perplexing” issues is that the NBS has traditionally reported positive year-on-year growth rates in percentage terms, while growth in absolute yuan terms has been negative. This deviation, which barely happened in the past, has reinforced scepticism over the quality of the “data” and fuelled the suspicion that the NBS generates data outcomes that match the policy goals of the Chinese government leadership.

For example, in July, profits from industrial enterprises with more than 20 million yuan (US$2.9 million) in revenues rose 16.2% Y/Y, according to the NBS. But comparing this year’s absolute yuan levels with last year’s, profits dropped by 15.92%, according to calculations by the South China Morning Post. The data makes no sense on either a snapshot or total basis, as cumulatively, the profits grew 17.1% year on year in the first seven months, according to the official data, but fell 8.1 % in absolute terms.

 

In footnotes in its data report, the NBS explained that it only compared firms that were included in the data sample both this year and the same time last year. The bureau adjusts its sample periodically during the year, adding or deleting companies depending on whether they rise above or fall below the minimum revenue threshold. In the most glaring example of how to report “Non-GAAP” economic data, Chinese firms that are in only one sample appear to have been stripped out of the calculation, though the revisions in the samples used are not made public.

At the end of 2016, the number of industrial firms with revenues above the threshold stood close to 400,000. And yet, at the end of June, the NBS sample contained 59,000 companies as opposed to 54,000 during the same period last year.

Here too we find the same fudge: these companies’ operating revenues rose by 9.9% Y/Y officially but dropped by 3% in absolute terms.

Such methodology has drawn scorn from some observers for having special “Chinese characteristics” that are not used in other major countries.

And while it is no secret that Chinese economic data are notoriously manipulated, at least in the past Beijing has taken measures to avoid public examples of “two sets of books” showing different results.  One China economist close to the NBS told the SCMP there has been an internal debate over the clarification of data discrepancies.

Hardly surprising, the economist said it was very likely the NBS lowered last year’s base figures to make this year’s profit growth rate from industrial firms higher in percentage terms, the economist said. The revisions form part of a campaign to clean false data from local authorities, who have been inclined to inflate figures to gain more fiscal support from the central government.

Based on calculations by the Post, the provinces and regions that inflated their industrial profit data by more than 30% last year include Tianjin, Hebei, Inner Mongolia, Jilin, Jiangxi, Shandong, and Guangxi. The result is hardly surprising because some of those provinces in question had already been exposed for forging data. For example, the Binhai New Area, an economic zone in Tianjin, was exposed for having inflated its 2016 GDP growth by a third.

* * *

Another example of the NBS “cleaning up” local data is the plunging growth of fixed-asset investment (FAI), which until recently was the biggest part of China’s GDP. During the first seven months of this year, figures show investment by state-controlled firms and private ones increased by 1.5 per cent and 8.8 per cent respectively, compared to 10 per cent and 6 per cent for the whole year of 2017.

“How can the partial year 2018 data have such an extreme flip compared to 2017? It is not credible that state FAI is growing at only one-sixth the pace of the private one, the lowest ratio ever, especially when the press is filled with stories on the difficulties of private firms getting bank loans,” Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics, said.

“For the FAI data, they are beginning to wring out some of the vast overstatement of capital formation so the per cent change reported most recently is calculated against a prior number that has been adjusted.”

As we reported at the time, a 2015 study from the Rhodium Group found that because of different data reporting systems, local authorities tended to overstate growth, which it turn made the central government adjust its national calculations in an attempt to factor this in.

Anecdotally, in the past the NBS has tried different ways of containing local data misreporting, such as embedding tracking chips in excavators and other construction equipment to measure their operating times, which can be compared with reported data on construction activity.

But it’s not just local government fabricating their output to Beijing: even inside the NBS, there is a mistrust of the data generated by different departments. According to the 2015 Rhodium study, the department that calculates the headline figures does not trust the information provided by its own industrial statistics department, which compiles data directly reported by individual firms.

“The statistical system is target-driven, so if consumer spending is targeted to grow at 10 per cent, say, then the statistics collectors make adjustments in order to reach 10 per cent.

“That might [cause the NBS to] change the number of companies being sampled, change the standards for inclusion in the samples, or even (in a case we ran into) call companies and suggest that they reduce last year’s numbers to create a more attractive comparison,” Anne Stevenson-Yang, co-founder of J Capital Research said.

In short: China’s data has long been goalseeked to be whatever “someone” in Beijing orders it to be.

Aware of this, economists have resorted to other indicators, such as monitoring satellite images of the intensity of artificial night lights or rises and fall in energy consumption, to monitor the country’s economic activity.

Amazingly, even this data is now being gamed: last month, China’s National Energy Administration said the country’s primary industry (the official term for the agriculture sector) used 6.5 billion kilowatt-hours of electricity in June, an increase of 6.6 per cent from the same month in 2017. But compared with the figures reported last June, that represented a drop of about 46 per cent.

Caught lying and in the face of intense public suspicion, the agency later admitted that its calculations were based on a lower figure for last year, which excluded some support services based on a new definition of the agricultural sector.

It is the lack of transparency into data calculation methodology that most annoys economists. While NBS chief Ning now says China’s official data is comparable to that of other countries, its reporting standards have yet to catch up with global standards. In short, when it comes to the economic data meant to validate the “second biggest economy” in the world, China is nothing more than a banana republic.

Of course, the simplest solution would be for China to adopt apples to apples proforma numbers, using the old methodology to represent a given data point, something which other nations like the US do. “Indeed the US economy is less volatile than China’s and its local data is more accurate,” the economist close to the NBS said.

The economist said this raised the question why the NBS could not disclose its margin of error or release two sets of data using both the old and new methodology.

“I have repeatedly asked them about this, and they say they can’t. I asked why. They said ‘why invite confusion as it would take lots of effort to explain to laymen why you published two numbers?’.

Indeed, why admit you lied?

end

4.EUROPEAN AFFAIRS

Italian 10 yr bond yield hits 3.20% as the world is reacting to the turmoil in the world

(courtesy zerohedge)

Italian Bonds Are Tumbling

Whether it is due to contagion from the latest emerging markets selloff, or growing concerns about Italy’s budget demands, another market that has gotten whacked on Thursday is the Italian bond market where BTP futures have reversed earlier post-auction gains, dropping to a day low as risk-off sentiment spreads across markets.

As a result, the Italian curve is bear flattening, with the 2y +14bps to 1.30%…

 

… and the 10y BTP yield has jumped +8bps to 3.30%; 5y +5bps to 2.45%;

 

Futures are selling off across the board.

 

Today’s selling brings the 10Y yield to the level last seen during the furious May selloff.

Speaking to Bloomberg, one London-based trader sees selling at the long-end of the BTP curve, though “no specific catalyst evident.”

Should the EM carnage accelerate, keep a close eye on Italy to see if contagion spreads to the weakest of the core markets.

end

This is good:  The EU will be willing to scrap all car tariffs to zero as long as the USA does the same. Trump stated previously that he would be willing to do so.

(courtesy zerohedge)

EU Willing To Scrap Car Tariffs In US Trade Deal:

Politico

Trump’s hard ball negotiating tactics appear to be bearing some fruit, with Politico reporting that Brussels is willing to scrap tariffs on all industrial products, including cars, in trade talks with the United States, EU trade chief Cecilia Malmström said Thursday.

“We said that we are ready from the EU side to go to zero tariffs on all industrial goods, of course if the U.S. does the same, so it would be on a reciprocal basis,” Malmström told the European Parliament’s trade committee. Sending the ball in the Trump’s court, she said that “we are willing to bring down even our car tariffs down to zero … if the U.S. does the same,” adding that “it would be good for us economically, and for them.”

European Commissioner for Trade Cecilia Malmstrom

While the EU’s car tariff of 10% is higher than the general U.S. auto tariff of 2.5%, America imposes a 25% duty on light trucks and pick-ups.

The European gambit may be a non-starter, as during a first meeting in Washington last week, an EU proposal for including cars in the discussions was rejected by the U.S. Brussels and Washington are holding preparatory trade talks to define the scope of a potential future agreement.

Malmström’s comment goes beyond what was agreed in July in the joint statement between European Commission President Jean-Claude Juncker and U.S. President Donald Trump, which only mentioned eliminating tariffs, non-tariff barriers and subsidies for “non-auto industrial goods.”

Malmström insisted that the discussions were not about “restarting TTIP” but aiming for “a more limited trade agreement.” Furthermore, Agriculture would not be in the agreement, nor public procurement as it looks to today, she said.

Following the report, European automakers jumped to the top of the Stoxx 600, which pared declines along with the DAX pared some declines amid hope of improving trade tensions with the U.S., with most names rising over a percent: Ferrari +1.5%, Fiat Chrysler +1.6%, BMW +1.6%, Volkswagen +1.4%, Daimler +1%.

Other assets mirrored the improvement in risk sentiment – bund and Treasury futures pulled further back from day highs, and EUR and CNH trimmed declines.

But as Bloomberg notes, any trade progress depends on a positive response from the U.S. And with frictions remaining on Nafta and China talks, any trade pact will continue to be shrouded in uncertainty. The conclusion: “fon’t expect a sustainable uplift from this news.”

end

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

TURKEY

The Deputy Central banker for Turkey quits leaving just Erdogan’s son in law as the only visible head.  That caused the Turkish lira to plummet to 6.84 but it has now stabilized at 6.75..very dangerous.  Remember anything over 7.1 and the banks fry.

(courtesy zerohedge)

Lira Plummets After Turkish Central Bank Deputy

Governor Quits

It was already an ugly day for the Turkish Lira, which earlier in the day accelerated its drop for the 4th consecutive session, sending the USDTRY to the highest level since August 14 when the currency crashed over the weekend to the lowest level on record.

Today’s drop was initially precipitated after Erdogan said on Thursday that Turkey is not without alternatives”and warning that it won’t “back down over threats.”

In his latest attack on the US, Erdogan said that “some do not hesitate openly stating the fact that they are trying to drive us into a corner through the economy. There are surely structural issues in the Turkish economy. We know these issues and are working to fix them.”

Alas, as we noted earlier, judging by the plunge in the lira, the market did not seem convinced by Erdogan’s latest rant, and proceeded to slide further after closing last night down 3.0% at 6.469 which was weaker than where it was on the Friday 3 weeks ago (6.4323) when the panic spread across the market. The only softer closing level was on the following Monday (6.884) but that actually included a big intra-day rally back from the Asian wides. Yesterday was the third day in a row the Lira has weakened (post domestic holidays) while Turkey’s 5yr CDS was also +14.4bps wider and touched 500bps again (recent high was 535.0 on Aug 13).

Meanwhile, the latest attempts by Turkish authorities to shore up the lira in mid-August that led to a three-day rally in the aftermath, now seem to be losing potency now. And the most recent effort, yesterday’s reintroduction of borrowing limits for banks yesterday – an unwind of what took place just two weeks ago – is proving ineffective.

Then, pouring gas on the fire, the Turkish currency plunged even more,following a Reuters headline that the Turkish central bank deputy Klimici had resigned, and was set to join the Turkish Development Bank. From Reuters:

Turkish central bank’s deputy governor and Monetary Policy Committee member Erkan Kilimci is set to resign from the bank, two sources familiar with the matter told Reuters.

Kilimci is to become a board member for the Development Bank of Turkey, the sources said. No one was immediately available at either bank for comment on Thursday, a public holiday in Turkey.

Turkey’s Central Bank has been under pressure from President Tayyip Erdogan not to increase interest rates, despite the lira’s depreciation against the U.S. dollar by more than 40 percent this year.

The market promptly saw this unexpected departure as an indication that Erdogan’s influence over the central bank is growing, making the much needed rate hikes unlikely, potentially leaving hyperinflation in its wake. In kneejerk reaction, the USDTRY spiked as high as 6.8427 before recovering some losses and last trading at 6.7570, a level which will hardly give emerging markets confidence that capital outflows from Turkey (or Argentina, or elsewhere) are about to stabilize.

 

END

The following commentary is a must must read.. Brandon Smith is one smart cookie. He states that what is really going on is under the cover of trade wars is the de dollarization of the world.  Iran, Russia and the EU are all seeking ways to avoid the use of the dollar

again a must read..

(courtesy Brandon Smith/Alt-Market.com)

Iran Sanctions, Emerging Markets, And The End Of Dollar Dominance

Authored by Brandon Smith via Alt-Market.com,

The trade war is a rather strange and bewildering affair if you do not understand the underlying goal behind it. If you think that the goal is to balance the trade deficit and provide a more amicable deal for U.S. producers on the global market, then you are probably finding yourself either confused, or operating on blind faith that the details will work themselves out.

 

Case in point, the latest reports that the U.S. trade deficit is now on track to hit 10-year highs, after a 7% increase in June. This is the exact opposite of what was supposed to happen when tariffs were initiated. In fact, I recall much talk in alternative media circles claiming that the mere threat of tariffs would frighten foreign exporters into balancing trade on their own. Obviously this has not been the case.

Rumors of China committing to trade talks or “folding” under the pressure have been repeatedly proven false. Though stock markets seem to enjoy such headlines, tangible positive results are non-existent. While the world is mostly focused on China’s reactions, sanctions against other nations are continuing for reasons that are difficult to comprehend.

Sanctions against Russia have been tightened in the wake of the poisoning of Sergei and Yulia Skripal in the UK, even though we still have yet to see any concrete evidence that Russia had anything to do with the attack.

Sanctions against Iran have been reintroduced on the accusation that the Iranian government is engaged in secret nuclear weapons development. And again, we still haven’t seen any hard evidence that this is true.

Such sanctions, based on hearsay, rumor and “classified” data that the public is never allowed to review, present what amounts to an economic fog of war. What appears to be a chaotic mess, however, could actually be a distraction from a greater scheme.

I’m talking about what the IMF commonly refers to as the “global economic reset”. They tend to discuss it in vague fashion, but from what I have gathered from the IMF’s own documentation as well as what other major economic powers are calling for, this reset includes a path to de-dollarization. This means the end of the dollar as the world reserve currency, to be replaced with the SDR, a basket currency system controlled by the IMF.

The Iran sanctions, in and of themselves, do not represent a trigger for a global dollar dump. Though, globalists within the IMF might prefer that the average person or economic analyst believe this possible. In this way, they avoid blame for the potential fiscal suffering that would result when the dollar is displaced and stagflationary consequences strike.

A lot of dominoes have to be carefully and deliberately placed and knocked down in order for the dollar to lose its reserve status, but the process is well underway.

The effects of sanctions on Iranian oil are a perfect example.

Rather than creating a “multipolar world” as mainstream propaganda suggests, we are seeing even more global centralization in the face of the trade war. In recent news, five nations including Russia and Iran have signed an agreement on the Caspian Sea. The longtime dispute over the resource rich region has suddenly ended as tariffs disputed with the U.S. accelerate.

Iran was initially reluctant to sign the deal, but its success now marks a milestone in Russia/Iran relations. To reiterate, two nations that have been sanctioned by the U.S. are now moving closer together for strategic and economic gain. But it doesn’t stop there.

Europe has expressed a distaste for Iran sanctions and is slow to reduce its purchases of Iranian crude and natural gas. In the process, EU nations would lose one of their largest suppliers of energy.  Both France and Germany are considering the use of alternative payment systems in order to sidestep the US and continue trade with Iran.  This move falls in line with reports that Germany is moving away from the US dominated SWIFT payment network to the Chinese based CIPS.

Natural gas is vital to Europe’s economy, including heating during winter months. Initially, before Iran’s export markets opened back up, the EU was heavily dependent on Russian natural gas and oil to meet its demand. With the threat of Iran sanctions set to return this November, guess which supplier is back in town.  Russia and Germany are set to sign an agreement on an oil pipeline called Nord Stream 2, which will increase Russian energy exports substantially. Donald Trump has attacked the proposal, claiming it makes Germany “a captive of the Russians”. This rhetoric, though, only seems to be hastening the process.

I would note that sanctions against Iran are the likely cause of elevated support in Europe for closer economic ties to Russia. Once again, we see the world moving closer together in centralization while the U.S. is being systematically cut out.

Iran has stated openly that it plans to defy U.S. sanctions and this defiance has been met with support not only from Russia, but also China. The Asian export and import powerhouse, already embroiled in a trade war with the U.S., has stated it will not cut Iranian crude imports, and has even suggested removing the dollar as the trade mechanism for oil purchases.

The Iran issue is igniting at an interesting time.

Emerging market economies are facing considerable pressure as the Federal Reserve continues its interest rate hikes and balance sheet cuts in the name of fiscal tightening to combat “inflation”. As I have mentioned in past articles, U.S. banks and corporations were not the only recipients of Fed bailouts, QE and overnight loans. According to the initial TARP bailout audit, which only gives us a small glimpse into the amount of fiat pumped into the global system by the Fed, trillions of dollars were injected into foreign banks and companies.

Emerging market countries became addicted to Fed liquidity over the past decade, using no-cost loans and the weakened dollar to prop up stock markets, bonds and their own currencies. They were the first to see a stock market rebound after bailouts were launched, and now they are the first to see their stock markets plunge as the Fed removes the punch bowl. Emerging market equities have recently suffered an approximate 15% drop as dollar liquidity dries up.

The trade wars have provided perfect cover, distracting the public from the fact that without constant and expanding money creation by the Federal Reserve, assets around the world are plunging in value.

This imbalance in market declines has fooled mainstream analysts, who are claiming it as evidence that Trump’s trade war is “working” and that trade opponents will soon capitulate. In reality, the reverse is more likely true.

As we have seen with Iranian oil, emerging economies are not rushing to placate the U.S. And even European nations like Germany are seeking alternatives that are out of line with U.S. wishes. India has complained openly that the Fed’s balance sheet cuts and interest rate hikes will cause severe economic instability. Though foreign banks still hold trillions in dollars overseas, dollar liquidity has become a major psychological factor. Beyond this, it is the higher COST of dollar based loans due to rising interest rates which mainstream analysts seem to be ignoring.  Debt already accumulated by emerging market banks is set to become much more expensive, and this is likely the trigger behind stock volatility in much of the developing world at this time.  The more expensive debt is, the less international banks and foreign central banks will be borrowing in order to prop up stocks in those regions.

When an addict is unable to get the drug he desires from his traditional source, he will look for alternative sources. Meaning, emerging markets are going to seek out other options to replace the dollar by necessity.

One might wonder if the Fed is aware that they are creating the very conditions that will cause the demise of the dollar. And the answer is yes – they are perfectly aware. Jerome Powell admitted in October 2012 that tightening of QE and higher interest rates could cause severe fiscal crisis. Today, Powell is the Fed chairman, and he is pursuing the very actions he warned about in 2012. If this does not tell you that the Fed is a deliberate saboteur of our system, then I don’t know what does.

We commonly focus on the consequences of Fed policies within America, but rarely consider how the Fed’s actions might hit foreign markets, and then circle around like a boomerang to hit the U.S.

We know that higher interest rates will eventually crush corporate stock buybacks, which have kept U.S. stock markets in an artificial bull market for years.  August is known as the most aggressive month for stock buybacks and this is reflected so far in the recent market rally. But, corporations are already weighted with historic levels of debt not seen since the Lehman crisis, and higher rates will drag them down into even deeper waters. Though, with emerging markets, we see the threat of something far more damaging – the end of the dollar as world reserve.

The consequences? It is possible, though perhaps unprecedented, that the dollar index will decline even while dollar liquidity is being cut. Meaning, severe price inflation as foreign holders of dollars dump them back into U.S. markets as they turn to a basket-based monetary system.

This would likely lead to an explosion in gold prices, but beyond that, an explosion in most commodity prices for Americans. Global banks are more than happy to initiate their “reset” in this manner, as Trump’s trade wars can be used as the perfect cover for any pain that is felt during the transition.

If prices do indeed spike and stocks plummet, tariffs will be blamed instead of the central bankers. When enough fear has been induced in the populace, the IMF and its banker patrons can “ride to the rescue” with the same SDR-based basket system that China and Russia have been calling for as a replacement for dollar hegemony.

In this scenario, America is painted as the bumbling villain that gets what he deserves, while the world is saved from the edge of destruction by the very banking elites that created the catastrophe in the first place.

*  *  *

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end

RUSSIA/USA/SYRIA

Lavrov warns the west not to obstruct any anti terror operations as a new assault on Idlib province is hours away

(courtesy zerohedge)

Russian FM Lavrov Warns West “Don’t Obstruct Anti-terror Ops” As Idlib Assault “Hours Away”

Russian Foreign Minister Sergei Lavrov Lavrov has warned the West not to interfere in Syrian and Russian forces engaged in antiterror actions in the northwest province of Idlib: “I hope our Western partners will not give in to [rebel] provocations and will not obstruct an antiterror operation,” he said.

This as Reuters reports that a planned “phased offensive” is imminent and as massive Syrian Army reinforcements and military convoys have been filmed this week heading toward the last major anti-Assad holdout.

Reuters reports based on Syrian pro-government allied sources:

The offensive would initially target southern and western parts of the insurgent territory, but not yet Idlib city, said the source, an official in the regional alliance backing Assad.

“The final touches for the first stage will be completed in the coming hours,” the official added, without saying when it would start.

 

Lavrov called Idlib a “festering abscess” that needed to be “liquidated” of terrorists and jihadists, according to reports.

“I hope our Western partners will not give in to [rebel] provocations and will not obstruct an antiterror operation,” he said in comments made Wednesday.

Mention of “provocations” is a reference to Russian assertions this week that the al-Qaeda group that controls Idlib, Hay’at Tahrir al-Sham, is planning to stage a “chemical attack” incident in order to blame Syrian and Russian forces, in the hopes that the West will intervene militarily against Damascus.

Russia now says it has staged its largest naval build-up in the Mediterranean since its entry into the war at the invitation of Damascus in 2015.

Lavrov further mentioned Turkey in his Wednesday statements, saying Moscow was in contact with Turkey and the U.S. on the situation in Idlib, noting there is a “full political understanding” between Moscow and Ankara, though the Russian FM didn’t provide details.

Meanwhile, NATO has confirmed the large Russian battleship and naval presence off Syria’s coast, and has called on all external powers to exercise “restraint”; and a United Nations spokesman has warned that “up to 800,000 people could be displaced and that the number of people who are in need of humanitarian assistance.”

In statements made on Tuesday the US State Department reiterated to reporters the United States “will respond to any verified chemical weapons use in Idlib or elsewhere in Syria … in a swift and appropriate manner.”

Spokeswoman Heather Nauert said further that senior U.S. officials have engaged with their Russian counterparts “to make this point very clear to Damascus” — that chemical weapons “will not be tolerated” — and could meet with massive military response. She also repeated that Assad would be held responsible.

Russian state sources on Wednesday cited the Russian Defense Ministry to say it has detailed intelligence confirming militants in Idlib are planning a chemical “provocation”. Per RT News:

The Russian military has received information from several sources in Idlib Province that “a large supply of poisonous agents has been brought to the city of Saraqib on two trucks from the village of Afs,” Major-General Aleksey Tsygankov, head of the Russian Center for Reconciliation of the opposing sides in Syria, said in a statement.

The chemicals were delivered to an arms depot, used by the militant group Ahrar al-Sham, “accompanied by the eight members of the White Helmets organization,” Tsygankov said, adding that the cargo was met by two high-ranked Ahrar al-Sham commanders.

Russia says that as Idlib’s al-Qaeda groups face imminent defeat, they plan to stage an event to gain the attention of the West, which has already promised it will hit back at Syrian government positions.

Analysts have predicted the Idlib campaign will be the bloodiest and longest grinding final battle of the war.

But what should by now be obvious to all is this: Assad, on the verge of total victory, has absolutely no incentive whatsoever to commit the one act that would ensure his own demise after emerging victorious after seven years of war.

end

How is this for statesmanship?:  The Russians invite the USA to a meeting where they owed that al Qaeda insurgents were planning a false flag chemical attack in order to provoke the west to attack

(courtesy zerohedge)

In Rare Meeting, Russia Delivers Intel To US Officials Showing “Planned Chemical Provocation” In Syria

Russia says that its diplomats in Washington formally reached out to US officials and have briefed them on an impending plan by al-Qaeda insurgents in Idlib to stage a false flag chemical attack in order to provoke a Western military attack on Damascus.

This week Moscow has claimed to be in possession of firm intelligence that it says shows armed groups in Idlib are transporting chemicals to area sites, in preparation for the coming major Syrian Army and Russian offensive on the contested province in northwest Syria.

According to RT News, it appears that the State Department previously confirmed that the rare meeting did take place:

Anatoly Antonov, the Russian ambassador in Washington, confirmed to the media on Wednesday that he had met with the US special representative to Syria, James Jeffrey, and David M. Satterfield, acting assistant secretary of state for near eastern affairs.

The attendees of the rare meeting and the fact that it had taken place earlier this week was revealed by US State Department spokesperson Heather Nauert during a daily briefing.

The meeting was reportedly held this past Monday, according to Russian Ambassador Antonov, who told RT it was “constructive and professional”.

We noted previously that Pentagon and US officials have continued pushing the gambit on Syria, with multiple statements last week and this week which appear to be setting the stage to play the “Assad is gassing his own people” card should so much as an inkling of an allegation emerge.

With the dominant al-Qaeda group in control of Idlib, Hay’at Tahrir al-Sham (HTS), facing imminent defeat in what is likely to be a lengthy, grinding final showdown, they have every incentive to claim Syrian government forces are using sarin or another internationally banned substance.

Considering allegations have been hurled at Assad and the Syrian Army before the Idlib assault has even begun, the past week’s war of words signals an unprecedented level of telegraphing intentions for leverage on the battlefield.

Starting last week with John Bolton’s promise that the US “will respond very strongly,” American officials’ threats have gotten progressively more specific, with the State Department spokesperson this week saying “we will respond to any verified chemical weapons use in Idlib or elsewhere in Syria … in a swift and appropriate manner” while also vowing to “hold Assad responsible”.

But it appears Monday’s meeting constitutes a back-channel attempt to calm the fast intensifying situation.

Russia’s ambassador to the US Anatoly Antonov

RT News continues:

At the meeting, Russia officially conveyed its concerns over reports that Washington together with France and the UK is gearing up for another set of airstrikes in Syria under the pretext of a chemical attack, that would immediately be blamed on the Syrian government. Moscow has asked Washington to “provide the facts without delay”to substantiate the new allegations that Damascus uses chemical weapons against its own people.

Russia’s ambassador to the US also reportedly identified the White Helmets as among the actors on the ground assisting in organizing such a potential provocation.

Concerning the specifics of what was shared with the State Department officials at the meeting, RT reports:

Intelligence that Russia has gathered has been shared with the US, and the diplomats were told “in detail” about the provocation against civilians being prepared by Al-Nusra Front (now known as Tahrir al-Sham) in the northwestern province of Idlib.

The Russian Defense Ministry reported earlier that Tahrir al-Sham was plotting a chemical attack that would then be misrepresented as another “atrocity” by the “Syrian regime.” Eight canisters of chlorine have been delivered to a village near Jisr al-Shughur city, and a specially trained group of militants, prepped by the British security company Olive, also arrived in the area to imitate a rescue operation to save the civilian “victims.” Militants plan to use child hostages in the staged incident, according to Antonov.

Such a scenario sounds similar to what Russia alleges happened in April 2017 in Idlib, where there was never so much as an on-the-ground investigation to collect evidence to back the Khan Sheikhoun claimed “sarin attack” incident, which resulted in the Trump White House bombing Syria on mere “rebel” claims and YouTube videos, before waiting for any confirmed scientific proof to back the claims.

To this day the international chemical investigative body and watchdog, the OPCW, has yet to visit the site due to its being controlled by al-Qaeda forces.

Meanwhile, a former Pentagon official, Michael Maloof, told RT that if a major publicized chemical attack claim is made and is quickly echoed in the media, the “burden of proof” won’t matter as Washington and its allies will use it as leverage anyway.

“If history is any precedent, they won’t bother. They did not investigate the last episode before they launched a missile attack into Syria and there’s no reason to suspect that they will this time either,” Maloof said.

“The whole idea is to embarrass Moscow and to intimidate Damascus,” he said.

It appears that Russia is exhausting every diplomatic channel to prevent such a scenario from unfolding; however, mainstream US pundits are already accusing Russia of paving the way for a Syrian regime chemical attack via preliminary propaganda.

However, its difficult to understand what Moscow and Damascus would stand to gain from doing the one thing that ensures greater Western military intervention at the very moment Assad stands with the clear momentum of victory on this side.

6. GLOBAL ISSUES

 

7  OIL ISSUES

 

8 EMERGING MARKET ISSUES.

 

SOUTH AFRICA

What a mess!! the Rand tumbles to almost 15 to one as the government warns of a “catastrophe’ unless their criminal land reform is allowed.  Believe it or not but the UK government and the IMF are agreeing to this confiscation if it is legal?????..confiscation without compensation????

(courtesy zerohedge)

Rand Tumbles As Government Warns Of “Catastrophe”

Unless ‘Land Reform’ Allowed

In a barrage of headlines that sparked chaos in FX algo markets, The South African government proclaimed proudly that it is opposed to illegal land grabs (sparking a rally in the rand) before humans realized that this is mere statement of fact and that the entire reason for this process is to ‘legalize’ land grabs through reform.

As Deputy President David Mabuza said, the nation will “slide into catastrophe” if land reform doesn’t take place.

“The majority of our people are poor and homeless,” he told lawmakers in Cape Town Thursday.

“Our resources to carry out reform are limited.”

And the reaction is now getting real as the Rand nears two-week lows once again…

Notably, the rand is behaving more erratically this month than it did during the height of the power struggle between Jacob Zuma and Cyril Ramaphosa in December. The rand’s one-month historical volatility is now at its highest level since December 2016 and the currency is headed for its worst August performance against the dollar on record, on track for a 9 percent drop.

As Bloomberg notes, President Cyril Ramaphosa has embraced land expropriation without compensation as a means to achieve equality and racial justice, and in a bid to steal a march on populist opponents before elections in 2019. A planned amendment to the constitution is still a work in progress, with public hearings on the matter concluding next month.

Yesterday saw UK PM Theresa May confirm her support of Ramaphosa’s “land reforms” as long as they’re legal…

“The UK has for some time now supported land reform that is legal and transparent and generated through a democratic process. I discussed it with President Ramaphosa during his visit to Britain earlier this year and will discuss it with him again later today,” she said.

“I welcome the comments that President Ramaphosa has already made, bearing in mind the economic and social aspects of it. I think he’s made some comments that it won’t be a smash and grab approach. I think there’s an opportunity to unlock investment.”

And today, The IMF also backed “land reforms” as long as they are “rules based.” 

The IMF’s senior resident representative in South Africa Montfort Mlachila told Reuters that the reform must not damage farm output to ensure South Africans continue to have reliable food supplies.

President Cyril Ramaphosa has said the ruling African National Congress (ANC) plans to change the constitution to allow the expropriation of land without compensation, as most of it is still owned by members of the white minority.

“We are in full support of the need to undertake land reforms in order to address the issues of inequality,” Mlachila said in an interview.

There is need to have a transparent, rules-based, and constitutional process that leads to desirable outcomes. It is particularly important not to undermine agricultural production and food security.”

The question is – who sets the rules, because it is certainly not the market.

 

 

end

Argentina

 

Argentina in trouble this morning as the Central Bank of Argentina hiked rates to 60% trying to stop the Peso collapse which just hit 39 to one. This just about kills all business inside Argentina and no doubt we will see defaults occurring with reckless abandon
(courtesy zerohedge)

Argentine Central Bank Emergency-Hikes Rates To 60% To Stop Peso Collapse

Update: Having met pre-market, it appears the Argentina Central Bank (CBRA) decided that if things got worse they would ‘emergency hike’ rates. And as the peso collapsed to 39/USD, they have just raised the key 7-day leliq rate to 60% (a 1500bp hike)! The rate was last hiked from 40% to 45% on Aug 13th. They also confirmed there will no rate cuts until December.

BCRA

@BancoCentral_AR

El BCRA aumenta la tasa de política monetaria al 60% e incrementa en 5 puntos porcentuales los encajes, integrables con pesos, LELIQ o NOBAC.

For now, it’s not working…

*  *  *

Argentina’s Peso has plummeted over 11% at the open this morning (after crashing almost 8% yesterday) as Macri’s request for faster IMF disbursements has backfired, raising investor uncertainty about Argentina’s ability to repay liabilities.

The peso is now testing 38/USD!!!

This is the worst day for the peso since Dec 2015’s devaluation.

Paul Greer, a money manager at Fidelity International in London, suggests that Mauricio Macri’s administration has made “crucial messaging and strategy mistakes” during the past few years, adding that communication with investors has “consistently been a problem.”

Greer argues that Macri must overhaul the team managing nation’s economy and finances to restore investor confidence, but as Santander notes, unbalanced FX market and volatility in local asset prices could continue during the coming months due to structural deficit of hard currency and uncertainty with Brazil elections. Recent peso devaluation followed strong hedging demand from corporates and individuals in the context of widespread uncertainty that “were not matched by an almost non-existent supply in the last days.” Santander adds that Central Bank firepower to intervene in the FX market is limited.

end

This afternoon:  Argentinian Peso collapses to 40. to one and no help in sight.  The IMF has previous experiences with Argentina and all ended in failure.

(courtesy zerohedge)

The Three Letters Behind Argentina’s Collapse: IMF

As reported earlier today, in response to the unprecedented drop in the Argentina Peso, the Argentina Central Bank (CBRA) decided to engage in an “emergency” rate hike, and as the peso collapsed to 39/USD, it unexpectedly raised the key 7-day leliq rate to 60% (a 1500bp hike). The rate was last hiked from 40% to 45% on Aug 13th. The bank also confirmed there will no rate cuts until December.

Unfortunately for Argentina, the dramatic rate hike is not enough, and with the market expecting some fiscal intervention, the ARS has resumed its slide and was trading at session lows at last check, hitting 40/USD for the first time ever.

But what about the IMF backstop? Well, the market does not appear to be giving the IMF too much credibility, and there may be a reason why as Constantin Gurdgiev explains. Here are his thoughts:

After a short wait, @IMFNews are back in business of taking over small and large-ish countries… and it’s next M&A target is its favourite one: #Argentina, one country that IMF can never cure of itself.

Greek Government spokesperson: “Greece is not Argentina”

In SIX IMF programs of 1992-1999 period, Argentina fulfilled NOT ONE of the IMF conditions for lending in… err… all 6 of these programs. Of the 61 years between 1956 and 2017, the country was under an IMF program for 40. In year 62, it is in program year 41…

By the ENTIRE history of Argentina, new IMF lending to the country is the most perfect exemplification of doing the same thing for 62 years, yet expecting a different outcome.

But do not despair: IMF lending to #Argentina will not completely wasted. It will feed caviar & champagne to an army of advisers, analysts, lobbyists, specialists, technical experts and similarly useless economists inhabiting Washington DC and environs.

Of course, this time, all will be different. The new IMF facility – agreed June this year is the LARGEST IMF loan in history to any state – USD50bn. Argentina’s Government deficit was 6.46% of GDP in 2017 (Italy’s, for comparison was 1.93%). ARG gross Gov debt is at ca 52.6% which is a slim shadow of Italy’s 131.5%. But, ARG current account balance is -5.1% of GDP, while Italy’s is +2.6%. As large as the IMF facility is, it will ONLY cover 14 months of Argentine Current Account Deficit.

All of which means one simple thing: after the last large scale IMF program (excluding subsequent lending to prop up post-program failures), ARG entered a period of economic Depression.

In conclusion: This time, it won’t be much more different, folks.

END

iv) Brazil

first, South Africa, then Argentina and now Brazil, as the real crashes to near record lows of 4.20 to the dollar.

As we pointed out to you, as soon as the real rises above 4:1 to the dollar, contagion will run rampant.

It sure seems that this is the case

(courtesy zerohedge)

Brazil Central Bank Intervenes As Real Crashes Near Record Lows

The bloodbath in Argentina and Turkey is evident in Brazil also where Bloomberg reports that the central bank just intervened for the first time since June 22.

BCB reportedly intervened at 4.20 “to provide liquidity” adding that intervention intensity and frequency will depend on the market. The BCB also attempted to provide some confidence by reaffirming that monetary policy is not directly linked to recent market shocks.

For now, the Real has stabilized.

Additionally, BCB will also offer an additional 30,000 FX swap contracts in auction today from 1:20pm to 1:30pm, according to a statement. Results to be announced at 1:40pm.

END

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

Euro/USA 1.16911 DOWN .0019/ 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 RED

 

USA/JAPAN YEN 111.49   DOWN 0.201  (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 1.3014 DOWN   0.0022  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.2929  UP .0024(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 THURSDAY morning in Europe, the Euro FELL by 19 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1691; / Last night Shanghai composite CLOSED DOWN 31.56 POINTS OR 1.14%  /Hang Sang CLOSED DOWN 259.39 POINTS OR 0.89% /AUSTRALIA CLOSED UP  .06% / EUROPEAN BOURSES ALL RED

 

 

The NIKKEI: this THURSDAY morning CLOSED UP 21.25 POINTS OR 0.09%

 

Trading from Europe and Asia

1/EUROPE OPENED ALL RED

 

 

 

2/ CHINESE BOURSES / :Hang Sang DOWN 259.39 POINTS OR 0.89%  /SHANGHAI CLOSED DOWN 31.56 POINTS OR 1.14% 

Australia BOURSE CLOSED UP .06%

Nikkei (Japan) CLOSED UP 21.25 POINTS OR 0.09%

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1204.30

silver:$14.65

Early THURSDAY morning USA 10 year bond yield: 2.88% !!! DOWN 1 IN POINTS from WEDNESDAY night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/

The 30 yr bond yield 3.02 DOWN 0  IN BASIS POINTS from WEDNESDAY night. (POLICY FED ERROR)/

USA dollar index early THURSDAY morning: 94.61 UP 2  CENT(S) from TUESDAY’s close.

This ends early morning numbers THURSDAY MORNING

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And now your closing THURSDAY NUMBERS \1: 00 PM

 

Portuguese 10 year bond yield: 1.92% UP 2    in basis point(s) yield from WEDNESDAY/

JAPANESE BOND YIELD: +.11%  UP 1 BASIS POINTS from WEDNESDAY/JAPAN losing control of its yield curve/EXTREMELY VOLATILE YESTERDAY

SPANISH 10 YR BOND YIELD: 1.47% UP 1  IN basis point yield from WEDNESDAY/

ITALIAN 10 YR BOND YIELD: 3.21 UP 7   POINTS in basis point yield from WEDNESDAY/DANGEROUS!!

 

the Italian 10 yr bond yield is trading 174 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: FALLS UP TO +.35%   IN BASIS POINTS ON THE DAY

END

IMPORTANT CURRENCY CLOSES FOR THURSDAY

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

Euro/USA 1.1695  UP .0002(Euro UP 2 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 111.78 DOWN 0.625 Yen DOWN 63 basis points/

Great Britain/USA 1.3002 UP .01324( POUND UP 132 BASIS POINTS)

USA/Canada 1.2947  Canadian dollar DOWN 19  Basis points AS OIL ROSE TO $69.33

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

This afternoon, the Euro was FELL BY 62 BASIS POINTS  to trade at 1.1647

The Yen ROSE to 111.17 for a GAIN of 51 Basis points as NIRP is STILL a big failure for the Japanese central bank/HELICOPTER MONEY IS NOW DELAYED/BANK OF JAPAN NOW WORRIED AS AS THEY ARE RUNNING OUT OF BONDS TO BUY AS BOND YIELDS RISE

The POUND LOST 40 basis points, trading at 1.29964/

The Canadian dollar LOST 83 basis points to 1.2983/ WITH WTI OIL RISING TO 69.71

The USA/Yuan,CNY closed UP AT 6.8445  ON SHORE  (YUAN DOWN)

THE USA/YUAN OFFSHORE:  6.8603 (  YUAN DOWN)

TURKISH LIRA:  6.7346

the 10 yr Japanese bond yield closed at +.11%   UP 1  BASIS POINTS FROM YESTERDAY

 

 

Your closing 10 yr USA bond yield DOWN 2  IN basis points from WEDNESDAY at 2.87 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.01 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, 94.83 UP 23 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 THURSDAY: 1:00 PM 

London: CLOSED DOWN  47.18 POINTS OR .62%

German Dax : CLOSED DOWN 67.44 POINTS  OR 0.54%
Paris Cac CLOSED DOWN 27.37 POINTS OR 0.42%
Spain IBEX CLOSED DOWN 109.80 POINTS OR 1.06%

Italian MIB: CLOSED DOWN:  264.97 POINTS OR 1.28%/

 

The Dow closed DOWN  137.65 POINTS OR 0.53%

NASDAQ closed DOWN 21.32 points or 0.26% 4.00 PM EST 

 

WTI Oil price; 69.71  1:00 pm;

Brent Oil: 77.45 1:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    68.28/ THE CROSS HIGHER BY 28/100 ROUBLES/DOLLAR (ROUBLE LOWER BY 28 BASIS PTS)

USA DOLLAR VS TURKISH LIRA:  6.7346 PER ONE USA DOLLAR.

TODAY THE GERMAN YIELD FALLS +.35 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:$70.13

BRENT: $77.56

USA 10 YR BOND YIELD: 2.86%

USA 30 YR BOND YIELD: 3.01%/

EURO/USA DOLLAR CROSS: 1.1672 DOWN .0038 ( DOWN 38 BASIS POINTS)

USA/JAPANESE YEN:111.05 DOWN 0.632 (YEN UP 63 BASIS POINT/ .

USA DOLLAR INDEX: 94.68 UP 8 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.3015 DOWN 21 POINTS FROM YESTERDAY

the Turkish lira close: 6.6566

the Russian rouble:  68.19 DOWN .15 roubles against the uSA dollar.

 

Canadian dollar: 1.2978 DOWN 72 BASIS pts

USA/CHINESE YUAN (CNY) : 6.8445  (ONSHORE)

USA/CHINESE YUAN(CNH):  6.8676 (OFFSHORE)

German 10 yr bond yield at 5 pm: ,0.40%


VOLATILITY INDEX:  13.33  CLOSED UP 1.08

LIBOR 3 MONTH DURATION: 2.312%  .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

Stocks Stall On Trump Tariff Turmoil, Emerging Market

Massacre

Seemed appropriate as the liquidity linkages all start to drag each other down…

China stocks have almost erased The National Team’s work from Monday…

 

After overnight weakness, US Stocks drifted higher as always to start the day, then faded around the time Warren Buffett was interviewed on CNBC (offering little to stoke the bull’s argument), then rebounded after Europe closed, then tumbled on China tariffs headlines (which were 100% known to everyone already)…

 

VIX and stocks have notably decoupled…

 

S&P Industrials took the brunt of the tariff headlines…

 

But do not fear ‘Murica – Amazon surpassed $2000…

“not a bubble”

 

 

While the China Tariff headlines prompted selling in stocks, there was blood on the streets all day in Emerging Markets…

Offshore Yuan tanked after Tariff headlines…

 

The Indian Rupee crashed to a new record low…

 

The Brazilian Real was battered non-stop until BCB intervened for the first time in over 3 months…

 

The Turkish Lira tanked as the central bank deputy governor quit…

 

But the Argentine Peso was the day’s biggest loser – crashing 10% at the close (though notably worse intraday), crossing 41/USD at its worst…

 

 

 

The South African Rand and Mexican and Chilean Peso also plummeted on the day.

The Argentine Peso is now the worst-performer YTD – down over 50% against the Dollar…

Cryptocurrencies also took a hit with only Litecoin and Bitcoin holding the week’s gains…

 

Treasury yields dropped 2-3bps on the day…

 

With 30Y back at 3.00%…

 

And the decoupling between stocks and bonds in the last two weeks has been ridiculous…

 

In commodities, crude continued its rise, everything else not so much…

 

Copper was utterly chaotic today…

 

Gold was also clubbed around the open…but futures held above $1200…

 

Finally, just a little note of interest, US economic data has been more disappointing than Emerging Markets recently relative to expectations…

end

 

market trading/this morning

 

 

Market data

Important points to take away from this new report:

1/ spending is exceeding income

2. government income is exceeding private sector income

3 core PCE, the favourite number for the Fed has reached its coveted 2% and thus the Fed must raise rates despite the upcoming train wreck in the economy.

(courtesy zerohedge)

Fed’s Preferred Inflation Indicator Jumps To 6 Year Highs, Reaches Mandate

The growth rate of Americans’ spending has slowed in the last three months (to +0.4% MoM as expected in July) and income growth has slowed, up just 0.3% MoM in July (below expectations of +0.4%).

However, while income growth year-over-year hovers at 3-year highs, it slowed in July, but spending growth year-over-year accelerated to near 4-year highs (highest since Oct 2014)…

Looking inside the income data, government worker wage growth accelerated as private worker wage growth slowed.

 

And the combination of faster spending and slower income gains pushed the savings rate down to 6.7% – the lowest since 2017 (remember the savings rate was revised and doubled last month)

 

But perhaps most notable is The Fed’s preferred inflation indicator (Core PCE) has hit The Fed’s magic number of +2.0% for the first time since April 2012…

More ammunition for continued rate hikes… despite the slow-moving trainwreck occurring in US housing markets (oh and the Emerging Markets).

end

USA economic/general stories
How could this be possible?:  Bankers ..who are fine and upstanding citizens doctoring their expense receipts!!
Wells Fargo fires over a dozen bankers who engaged in this type of fraudulent activity
(courtesy zerohedge)

Wells Fargo Fires Over A Dozen Bankers For Doctoring Expense Receipts

In what may be the most innocent violation to emerge out of Wells Fargo in years, the WSJ reports that Wells has fired or suspended more than a dozen employees in its investment bank and is investigating dozens of others over violations of the company’s expense policy regarding after-hours meals.

According to the report, Wells Fargo employees ranging from analysts to managing directors in New York, San Francisco and Charlotte, doctored receipts on dinners that they charged to the bank.

“We became aware that certain Wells Fargo Securities team members were not complying with the after-hours meals reimbursement policies after they were brought to the attention of our leaders by concerned team members,” a Wells Fargo spokeswoman said in a statement. “We took action to address the issue and we continue to investigate the matter.”

Wells Fargo, like most other big banks, reimburses staffers for food that they order when they have to stay late at the office to work on deals and other assignments for clients. Some bankers have been known to fabricate the receipts entirely, getting reimbursement cash for a “meal” that was never ordered.

In this particular case, the violation was far less serious: as the WSJ reports, executives within the investment-bank division learned that some employees regularly placed dinner orders through delivery services like GrubHub, Seamless or Square’s Caviar earlier than the policy allowed, the people said. Later, employees allegedly altered the time stamps on emailed receipts to make their meals eligible for reimbursement.

That discovery kicked off an internal review into months of expense filings that resulted in employees being fired or placed on administrative leave and that caused a delay in bonuses that were due to analysts earlier this summer, the people said. Since May, at least nine Wells Fargo analysts and associates have been terminated or have resigned voluntarily after the bank alleged they altered their meal receipts, according to a review of Financial Industry Regulatory Authority records. Banks generally have 30 days to update Finra records.

Of course, as anyone on Wall Street knows, this is a generally accepted practice across most banks, where management typically turns a blind eye and pretends not to notice this modest perk, traditionally taken advantage of by junior bankers, and which ultimately does not hurt shareholders as most of the expenses end up getting comped by clients as part of a far bigger bill.

According to some studies, fake expensing by bankers had been a major driver for the New York restaurant industry which was hurt in the aftermath of the financial crisis, when banks clamped down on the practice of expensing large meals altogether.

However, some more enterprising companies found workarounds: last year, Maloney & Porcelli created an “expense-report generator” that lets you take the total you spent on your meal (or essentially any figure that you choose) and created fake cab, office supply, and cheap-o meal receipts so your boss won’t know about the filet mignon and merlot you had on the company’s tab.

Some took offense at this perk that allowed starving bankers to go back to enjoying their $21 shrimp cocktails, $44 rib steaks ($10 sides are extra), and $46 filet mignons. Incidentlaly, Maloney & Porcelli, is located in the middle of Bank Row in Manhattan’s Midtown East, at the nexus of JP Morgan, UBS, and the former Bear Sterns buildings. Praised as the “best business lunch in NYC” by Gourmet Magazine, they were certainly feeling the pinch.

And now in order to demonstrate just how “clean” it is, Wells decided to pull the practice altogether and soon most other banks will have to follow suit.

end

is this the spark that crashes the bond market as we are witnessing many fallen angels like that of Ford which is one notch above junk.  The market just does not want to invest in any of these bonds with yields at the lower end of the spectrum

(courtesy zerohedge)

“Fallen Angel” Alert: Is Ford’s Downgrade The “Spark” That Crashes The Bond Market

Back in November, still smarting from a year he would rather forget, Russell Clark and his Horseman Capital, i.e. the “world’s most bearish hedge fund” unveiled what he would short next: according to Clark, the next major source of alpha would be shorting fallen angel bonds, or those investment grade companies in danger of being downgraded to junk.

Citing a recent IMF Global Financial Report, Clark said that “US investment grade debt is very low quality, and could produce some large fallen angels [and] mutual funds are much larger in the high yield market than they used to be. [L]ow rates means the capital losses are much higher than they used to be. And that investors in high yield mutual funds are much flightier than they used to be! Essentially the IMF are telling me that if you get a large enough fallen angel, the high yield market will freak out, and volatility will spike causing volatility targeting investors to dump leveraged positions. Sounds good to me.”

One month later, in the aftermath of of Steinhoff fiasco, in which the ECB found itself long tens of millions of bonds in a company which went from investment grade to deep junk after it was revealed that it may have engaged in occasional fraud, crashing the bonds…

… Mario Draghi only made the bearish “fallen angel” case more explicit, by clarifying that going forward the ECB would likely liquidate bonds which were purchased as IG and subsequently downgraded to Junk (as we explained in detail in “The ECB Has Some Bad News For Junk Bond Buyers“)

Then, at the start of June, legendary distressed investor Oaktree Capital, joined the bandwagon of fallen angel hunters, saying that the fund “expects to see a flood of troubled credits topping $1 trillion as rising interest rates overwhelm low-quality loans and bonds.”

Speaking at the Bernstein Strategic Decisions Conference, Oaktree Capital’s Chief Executive Jay Wintrob said that when the cycle turns it will be faster and larger than ever as “fallen angels” proliferate, and added ominously that “there will be a spark that lights that fire.”

Picking up on last week’s warnings by Moody’s, in which the rating agency warned of a junk bond default avalanche as rates rise, Wintrob said that the supply of low-quality debt is significantly higher than prior periods, while the lack of covenant protections makes investing in shaky creditors riskier than ever.

According to the Oaktree CEO, those structural flaws of the bond market mean debt will fall into distress quickly once conditions flip, and “Oaktree is prepared with about $20 billion saved for future investing opportunities.”

That number may be woefully insufficient: the total kept by S&P Global Ratings of potential “fallen angels”, or those investment grade companies in danger of being downgraded to junk, stood at just 45 in April, with $119.3 billion of debt outstanding according to Bloomberg. This is where Oaktree came in, with the rhetorical question posed by Wintrob to lenders, who “should be asking themselves if the market can continue to lend and extend maturities of debt at very low rates.

The potential opportunity for Oaktree is so pressing that the fund has now allocated about a quarter of its assets to troubled issuers.

To be sure, Horseman and Oaktree are not alone preparing for a surge in troubled issuers. The amount of “dry powder” held by fund managers to invest in low-quality debt has grown to around $150 billion, Wintrob estimated. Quoted by Bloomberg, he said this number has shown steady growth as the duration of bonds has increased, which could make the coming price drops even more significant than during the turn of the last credit cycle in 2008.

Which of course would be great news for America’s bankruptcy advisors: as a reminder, a few months ago we quoted Moelis’ co-head of restructuring Bill Derrough who said that “I do think we’re all feeling like where we were back in 2007,” adding that “there was sort of a smell in the air; there were some crazy deals getting done. You just knew it was a matter of time.”

All that is needed is the spark.

* * *

And so, with everyone lying in wait for the proverbial “spark that lights the fire” and leads to the next inevitable bond crash, yesterday Moody’s may have been playing with fire when the rating agency downgraded Ford Motor’s credit rating was to just one notch above junk, making it the biggest single “fallen angel” candidate in the US bond market.

Adding to Ford’s recent woes after it embarked on a costly restructuring that could take years to complete, and rising costs as a result of Trump’s auto tariffs, on Wednesday Moody’s downgraded Ford to Baa3 from Baa2 with a negative outlook, which means that just one more downgrade, and Ford will be rated junk. 

The ratings company cited erosion in Ford’s “global business position and the challenges it will face implementing” its restructuring effort that could rack up $11 billion in the next three to five years.

Ford’s 5.291% notes due 2046 were among the biggest decliners in the investment grade market in the past two days, falling to the lowest since their 2016 issue, or just under 90 cents on the dollar…

… resulting in a generous yield of over 6%, nearly unheard of for an IG issuer these days.

As Bloomberg notes, a descent into junk would be a blow to Ford after six years of investment-grade status. Ford avoided joining its U.S. peers in bankruptcy during the financial crisis, largely thanks to more than $23 billion in loans taken out in 2006. Now, this massive debt pile is coming to haunt the company.

Moody’s is just the first: last month, S&P cut Ford’s outlook to negative from stable and said prolonged weakness in profit and cash flow made a downgrade within two years increasingly likely. S&P rates Ford at BBB, two levels above speculative grade. But that will likely change soon, after the automaker lowered its profit forecast for the year, and is facing a number of headwinds beyond exiting the slowing sedan business in North America. The cost of complying with tougher emission rules in Europe and updating a stale product line in Asia contributed to second-quarter losses in those regions.

Earlier this year, Ford announced it would exit its storied U.S. sedan business, sending shock waves through the auto landscape. In addition, Ford and its Detroit counterparts have been in the crossfire of President Donald Trump’s trade talks with China and Mexico this year, causing volatility among U.S. automakers.

Commenting on the downgrade, Ford spokesman Brad Carroll said the company has had solid financial results and operating cash flows.

“The company has a strong balance sheet, which provides financial flexibility. We know we can capitalize on our strengths, bolster underperforming products and regions and disposition where we cannot make an appropriate return. We’re confident that as we do, the market will recognize our progress.”

Well, it had a strong balance sheet, not so sure about has, because adding to the income statement “perfect storm” is Ford’s rising debt/EBITDA, which has risen from 2.6x to 3.3x between 2016 and the twelve months ending June 2018.

It goes without saying, that slipping closer to junk status puts Ford at risk of higher borrowing costs, while an outright downgrade to junk would unleash a toxic spiral of surging interest rates at a time when Ford’s profitability is sliding fast, forcing the company to issue even more debt to fund its operations, until one day creditors pull the plug.

But here is the bigger problem: Ford – which is now in danger of being a historic “fallen angel” – has more than $80 billion in debt, and would become one of the biggest issuers in the U.S. high-yield bond market if it gets downgraded even one more notch.

Of course, it may not be Ford that catalyzes the crash: as Oaktree warned there is now “a flood of troubled credits topping $1 trillion as rising interest rates overwhelm low-quality loans and bonds.”

However, it would be poetic justice if the auto company that avoided bankruptcy during the Global Financial Crisis is the “spark” that – with its downgrade to junk – is the catalyst that unleashes the next bond market crash, as investors finally flee from the $1+ trillion US junk bond market, precipitating a cascade of selling that spreads into investment grade and, eventually, equities.

Which brings us back to the words from Moelis’ co-head of restructuring Bill Derrough who in may said that “I do think we’re all feeling like where we were back in 2007; there was sort of a smell in the air; there were some crazy deals getting done. You just knew it was a matter of time.”

That time may be almost here.

END

TRUMP’S latest interview:

  1. does not regret appointing Powell but wants him to help him against other nations in the trade war
  2.  Sessions is safe until the election and then he is probably out
  3.  will pull out of the WTO if they do not help the uSA in trade/zerohedge

Trump Threatens To Pull Out Of WTO, Praises Powell, Says Sessions Safe For Now

During a wide-ranging interview with Bloomberg in The Oval Office, President Trump covered everything from AG Jeff Sessions’ job stability to tax cuts for investors and his view on The Fed.

Via Bloomberg,

President Donald Trump said he doesn’t regret appointing Jerome Powell as Federal Reserve chairman, even after criticizing interest rate increases by the central bank.

“I put a man in there who I like and respect,” Trump said Thursday in an interview with Bloomberg News in the Oval Office.

Trump also says the Fed should help him in his trade disputes with China, the EU and other nations,asserting that other central banks are assisting their countries.

“We are not being accommodated,” he said Thursday. “I don’t like that.”

“That being said,” he continued, “I’m not sure the currency should be controlled by a politician.”

No indeed Mr. President (ask Mugabe and Maduro how that worked out).

President Trump also added that he would pull out of the World Trade Organization if it doesn’t treat the U.S. better, continuing his criticism of a cornerstone of the international trading system.

“If they don’t shape up, I would withdraw from the WTO,” Trump said Thursday in an interview with Bloomberg News at the White House.

A U.S. withdrawal from the WTO would severely undermine the post-World War II multilateral trading system that the U.S. helped build. Trump said last month that the U.S. is at a big disadvantage from being treated “very badly” by the WTO for many years and that the Geneva-based body needs to “change their ways.” U.S. Trade Representative Robert Lighthizer has said allowing China into the WTO in 2001 was a mistake.

Perhaps most notably, however, President Trump said he’s considering indexing capital gains to inflation, a change that would amount to a tax cut for investors.

“I’m thinking about it,” Trump said Thursday in an Oval Office interview with Bloomberg News.

The change would slash tax bills for investors when selling assets they have capital gains on — such as stock or real estate — by adjusting the original purchase price for inflation. The change has been a longtime goal of Trump’s top economic adviser, Larry Kudlow, who says the policy would spur job creation and economic growth because people wouldn’t be taxed on phantom income.

And finally, President Trump said Attorney General Jeff Sessions’s job is safe at least until the midterm elections in November.

“I just would love to have him do a great job,” Trump said Thursday in an Oval Office interview with Bloomberg News.

Asked if he’d keep Sessions beyond November, he declined to comment.

SWAMP STORIES

I brought you this story yesterday but it is well worth repeating. We now have a whistleblower who basically exposed the entire fake Russia election interference probe.  This is the “genesis” of how Obama and his team, tried to get Hillary elected and when that failed, they have tried to bring Trump down.

please read slowly to understand how this mess began

(courtesy Sara Carter)

“It Was All A Set-Up” – Pentagon Whistleblower

Exposes Russia Probe Reality

Via SaraCarter.com,

Adam Lovinger, a former Defense Department analyst, never expected that what he stumbled on during his final months at the Pentagon would expose an integral player in the FBI’s handling of President Donald Trump’s campaign and alleged Russia collusion.

 

Lovinger, a whistleblower, is now battling to save his career. The Pentagon suspended his top-secret security clearance May 1, 2017, when he exposed through an internal review that Stefan Halper, who was then an emeritus Cambridge professor, had received roughly $1 million in tax-payer funded money to write Defense Department foreign policy reports, his attorney Sean Bigley said. Before Lovinger’s clearance was suspended he had taken a detail to the National Security Council as senior director for strategy. He was only there for five months before he was recalled to the Pentagon, stripped of his prestigious White House detail, and ordered to perform bureaucratic make-work in a Pentagon annex Bigley calls “the land of misfit toys.” His security clearance was eventually revoked in March 2018, despite the Pentagon “refusing to turn over a single page of its purported evidence of Lovinger’s wrongdoing,” Bigley stated. Conservative watchdog group, Judicial Watch, recently filed a federal lawsuit against the Defense Department to obtain the withheld records.

Lovinger also raised concerns about Halper’s role in conducting what appeared to be diplomatic meetings with foreigners on behalf of the U.S. government because his role as contractor forbids him from doing so, according to U.S. federal law.

An investigation by SaraACarter.com reveals that the documents and information Lovinger stumbled on and other documents obtained by this news site, raise troubling questions about Halper, who was believed to have worked with the CIA and part of the matrix of players in the bureau’s ‘CrossFire Hurricane’ investigation into Trump’s 2016 presidential campaign. Halper, who assisted the FBI in the Russia investigation, appears to also have significant ties to the Russian government, as well as sources connected directly to President Vladimir Putin.

Halper did not respond to requests for comment.

“When Mr. Lovinger raised concerns about DoD’s misuse of Stefan Halper in 2016, he did so without any political designs or knowledge of Mr. Halper’s spying activities,” Bigley told SaraACarter.com.

“Instead, Mr. Lovinger simply did what all Americans should expect of our civil servants: he reported violations of law and a gross waste of public funds to his superiors.”

And for that, Bigley said, Lovinger has paid the ultimate price in his 12-year career as a strategist in the Pentagon’s Office of Net Assessment. According to Bigley, shortly after Lovinger began reporting and asking questions about suspicious contracts given to Halper and others, including one person closely associated Chelsea Clinton, his security clearance was suspended. Later, on April 3, 2018, the DoD’s Washington Headquarters Services Director Barbara Westgate sent a letter to Lovinger indefinitely suspending him from duty and pay status after his clearance was removed in March. The letter stated, “The purpose of this memorandum is to notify you that I am proposing to indefinitely suspend you from duty and pay status in your position as a Foreign Affairs Specialist.”

Lovinger, who is married with three children and is the family’s primary breadwinner, has been living off the generosity of family members since his pay was removed.

The retaliation for whistleblowing was something Bigley expected. “So, we weren’t surprised when DoD bureaucrats moved shortly thereafter to strip Mr. Lovinger of both his security clearance and his detail to the National Security Council, where he had been Senior Director for Strategy as a by-name request of the incoming Trump Administration,” said the attorney.

“Yet, we were puzzled by the unprecedented ferocity of efforts to discredit Mr. Lovinger, including leaks from DoD of false and defamatory information to the press,” he said. “Our assumption was that the other contractor about whom Mr. Lovinger explicitly raised concerns – a close confidante of Hillary Clinton – was the reason for the sustained assault on Mr. Lovinger, and that certainly may have played a role.”

Bigley suspects it was more than the Clinton-connected contracts adding, “Mr. Lovinger unwittingly shined a spotlight on the deep state’s secret weapon – Stefan Halper – and threatened to expose the truth about the Trump-Russia collusion narrative than being plotted: that it was all a set-up.”

Halper’s Ties to Russian Officials Raise Serious Questions

Halper has had a long career and worked in government with several GOP administrations. At 73, the elusive professor spent a career developing top-level government connections–not just through academia but also through his work with members of the intelligence apparatus.

Those contacts and the information Halper collected along the way would eventually, through apparent circumstance, become utilized by the FBI against the Trump campaign. But, it was during his time hosting the Cambridge Intelligence Seminar at the University of Cambridge where Halper shifted from a professor and former government consultant to FBI informant on the Trump campaign.

In 2016, Halper was an integral part of the FBI’s investigation into short-term Trump campaign volunteer, Carter Page. Halper first made contact with Page at his seminar in July 2016. Page, who was already on the FBI’s radar, was accused of being sympathetic to Russia and sought better relations between the U.S. and Russian officials. Halper stayed in contact with Page until September 2017.

During that time, the FBI sought and obtained a warrant from the Foreign Intelligence Surveillance Court (FISC) to spy on Page and used Halper to collect information on him, according to sources. The House Intelligence Committee Russia report and documents obtained by this outlet revealed that the bulk of the warrant against Page relied heavily on an unverified dossier compiled by Former British Spy Christopher Steele and the matter is still under congressional investigation. Steele, who was a former MI6 agent, also had ties to many of the same people, like former MI6 chief Sir Richard Dearlove, who were part of the seminar.

 

Stefan Halper

Halper, along with Dearlove, left the Cambridge Intelligence Seminar in December 2016, saying they were concerned about Russian influence. Halper had told reporters at the time that it was due to “unacceptable Russian influence.”

Ironically, documents obtained by SaraACarter.com suggest that Halper also had invited senior Russian intelligence officials to co-teach his course on several occasions and, according to news reports, also accepted money to finance the course from a top Russian oligarch with ties to Putin.

Several course syllabi from 2012 and 2015 obtained by this outlet reveal Hapler had invited and co-taught his course on intelligence with the former Director of Russian Intelligence Gen. Vladimir I. Trubnikov.

On May 4, 2012, the course syllabus states, “Ambassador Vladimir I. Trubnikov will comment on the challenges faced while directing the Foreign Intelligence Service, his tenure as Ambassador to India, President Putin and the likely course of Russia’s relations with Britain and the U.S.”

In May 2015, Trubnikov returned to teach with Halper at his seminar in Cambridge on “current relations between the Russian Federation and the West.” Other notable intelligence experts attended the event in 2015, including Major Gen.Peter Williams, a former British commander of the mission to the Soviet Forces in Germany.

Halper’s partner in the seminar, Cambridge Professor Neil Kent has also espoused better relations with Russia and Putin in his writings and told Russia Today in a 2014 interview that “everyone is attacking and demonizing Russia.” According to Kent’s biography, he was a professor from 2002 to 2012 at Russia’s St. Petersburg State Academic Institute.

Even more interesting are reports from the British Media outlet, The Financial Times, that state Halper received funds for the Cambridge seminar from Russian billionaire Andrey Cheglakov, who has close ties to Russian President Vladimir Putin. Cheglakov also funded Veruscript in 2016, which raised the suspicion of Dearlove and those connected to the seminar. Veruscript, a publisher for a Russian academic journal, was suspected by MI6 of being a front for Russian intelligence. Kent also happened to be the editor and chief of the journal. He published the inaugural article in the journal “The Journal of Intelligence and Terrorism”  blaming the West for the Russian invasion into Crimea but the journal closed down due to their suspicions.

Dearlove was also concerned “that Russia may be seeking to use the seminar as an impeccably credentialed platform to covertly steer debate and opinion on high-level sensitive defense and security topics,” according to the Financial Times sources.

A former senior intelligence official told this news outlet, It’s all smoke and mirrors. Halper was well aware when he was bringing in Trubnikov in 2012 that the Russian’s were already there at his invitation. The FBI uses Halper to get more information on Trump aides but it’s Halper who has the real connection to Russia.”

Lovinger raised concerns with top officials at the Pentagon in 2016 and noted that Halper went far beyond his work as a contractor after he discovered that the amount of money the professor was being paid for his research did not make sense. Lovinger stressed his concern that Halper was not just being utilized as a contractor, but that he was also conducting diplomatic work for the Pentagon “in violation of federal law,” according to Bigley.

In one email from Stephan Halper to Andrew May, the second highest ranking official in Lovinger’s office, Halper writes about a planned trip to conduct meetings in India.

“I am in Cambridge en route to India – arriving Saturday. So far 14 meetings have been scheduled with various parts of the political-military community. On Monday, a meeting is planned with the Delhi Policy Group where I will meet with Brigadier Seghal who is, apparently working with ONA (Office of Net Assessment) Can you tell me anything about him,” according to the document obtained by SaraACarter.com.

Halper and George Papadopoulos

Halper was not only spying on Page for the FBI in 2016, but he had also made contact in September 2016 with another Trump campaign volunteer, George Papadopoulos. He invited Papadopoulos to London that September, luring him with a  $3,000 paycheck to work on a research paper under contract.  By this time the young Trump campaign volunteer had already been in contact London-based professor, Josef Mifsud, who had basically informed him that the Russians had damaging material about Democratic presidential candidate Hillary Clinton. Misfud’s role has also come into question by Congress.

Eventually, Papadopoulos was swept into Robert Mueller’s Special Counsel investigation and pled guilty to one count of lying to the FBI. His wife, Simona Papadopoulos, who’s been a vocal advocate for her husband, told SaraACarter.com that essentially he was forced to plead guilty because of threats from Mueller’s team and lack of financial resources.

After testifying behind closed doors last month to the House Intelligence Committee, Simona told this outlet that she testified to Congress “as far as George is concerned, he met with individuals following the same pattern of behavior….and all of a sudden (Halper) was asking if he was doing anything with Russians…. This is the case with Halper, who is now proven to be a spy, possibly with (Australian Ambassador) Alexander Downer” who her husband met with in London.

Halper and Michael Flynn 

Before Page and Papadopolous, there was the former head of the Defense Intelligence Agency Army Lt. Gen. Michael Flynn. Flynn had been invited to Cambridge in February, 2014 for a a dinner hosted by both Dearlove and Halper.

But during that time, Flynn was already walking a fine line with the Obama Administration and battling President Obama and the CIA over his deep disagreement with the administration’s narrative that al-Qaeda and extremists groups, had been defeated or were on the run. Several months later Flynn was forced to resign early and ended his tenure as the director of the DIA.

 

Stefan Halper

“Flynn was pushed out by Obama and then became a thorn in the side of Obama and the Clintons when he joined the Trump campaign,” said a former senior intelligence source with knowledge of what happened. “The investigation into Trump didn’t start with Carter Page or George Papadapolous, but with Flynn. Flynn was already on the CIA and Clinton target list. Those same people sure as hell didn’t want him in the White House and they sure as hell didn’t want Trump to win.”

Flynn’s career with Trump ended as quickly as it came. He was forced to resign as Trump’s National Security Advisor 27 days after taking the job. The highly classified conversation between Flynn and former Russian Ambassador Sergey Kislyak was leaked to the Washington Post in January 2017 and he was later questioned by the FBI on that conversation. According to former FBI Director James Comey, the agents who interviewed Flynn did not believe he was lying, but in the end, Flynn pled guilty to one count of lying to Special Counsel Robert Mueller. He had already spent more than $1 million in lawyers fees and sold his home to help with the debt. According to sources, Flynn’s family was being threatened by the Mueller team.

Halper’s involvement in the bureau’s investigation started much earlier than the FBI’s opening of its Crossfire investigation into the Trump campaign on July 31, 2016. He was already providing information on Page, Papadopolous, and Flynn earlier that year.

And it was in 2016 when Halper had told the FBI that he witnessed concerning interactions between Russian academic, Svetlana Lokhova, and Flynn at the February 2014 seminar dinner. This suspicion – without any proof – was then leaked to papers in London and eventually discussed in the U.S. media.  Lokhova told the BBC in May 2017 that when she first saw the allegations raised in the media she thought it was a joke.

Numerous sources with knowledge of the allegations Halper made about Flynn, said that they were “absolutely” false and that Flynn and Lokhova only spoke for a short time at the dinner. Several email exchanges between Lokhova, Flynn and his assistant that took place after the dinner were generic in nature, as Flynn had asked her for a copy of a historical 1930s postcard she had brought to the seminar.

“But it didn’t matter that it wasn’t the truth,” said the former senior intelligence official.

“It was already out there because of Halper’s allegations and the constant leaking and lying of false stories of those to the media.”

end

Trump unleashed on CNN’s Carl Bernstein

(courtesy zerohedge)

Trump Unleashes On “Degenerate Fool” Carl Bernstein Over “Fake News”; CNN Responds

President Trump launched a decisive attack on CNN, roasting the network along with veteran journalist Carl Bernstein for a “Fake News” report over the 2016 Trump Tower meeting.

 

“CNN is being torn apart from within based on their being caught in a major lie and refusing to admit the mistake,” Trump tweeted Wednesday evening. “Sloppy @carlbernstein, a man who lives in the past and thinks like a degenerate fool, making up story after story, is being laughed at all over the country! Fake News”

Donald J. Trump

@realDonaldTrump

CNN is being torn apart from within based on their being caught in a major lie and refusing to admit the mistake. Sloppy @carlbernstein, a man who lives in the past and thinks like a degenerate fool, making up story after story, is being laughed at all over the country! Fake News

Bernistein, who gained notoriety with his coverage of the Watergate scandal, co-wrote an article for CNN in which he claimed that former Trump attorney Michael Cohen was willing to tell special counsel Robert Mueller that then-candidate Donald Trump approved the Trump Tower meeting between his son, Donald Trump Jr. and a Russian attorney (who hates Trump) who promised “dirt” on Hillary Clinton.

Lanny Davis – Cohen’s attorney and lifelong friend of the Clintons, began to backpedal on the claims last week – and later admitted that he was the source for CNN’s story. And while the Washington Post had the good sense to back away from the narrative – CNN did not. Instead, the network hit back against Davis, throwing him under the bus and claiming that he wasn’t their only source.

We stand by our story, which had more than one source, and are confident in our reporting of it,” said a CNN spokeswoman on Tuesday.

Most hilariously, CNN writes in its “bombshell” report: “Contacted by CNN, one of Cohen’s attorneys, Lanny Davis, declined to comment” – a complete lie, considering Davis’s admission that he was their source

Sean Davis

@seanmdav

You reported in a story sourced to Lanny Davis that Lanny Davis refused to comment on the story. That was a lie. And not only did you deliberately lie to push an agenda, you have thus far refused to even acknowledge the lie, let alone apologize for it. https://twitter.com/CNNPR/status/1034949979759108097 

CNN Communications

@CNNPR

Replying to @realDonaldTrump @carlbernstein

Make no mistake, Mr. President, CNN does not lie. We report the news. And we report when people in power tell lies. CNN stands by our reporting and our reporters. There may be many fools in this story but @carlbernstein is not one of them.

In response to Trump’s tweet, CNN’s Communications department responded: “Make no mistake, Mr. President, CNN does not lie. We report the news. And we report when people in power tell lies. CNN stands by our reporting and our reporters. There may be many fools in this story but @carlbernstein is not one of them.”

CNN Communications

@CNNPR

Make no mistake, Mr. President, CNN does not lie. We report the news. And we report when people in power tell lies. CNN stands by our reporting and our reporters. There may be many fools in this story but @carlbernstein is not one of them.

Later Wednesday evening, a feisty President Trump tweeted: “Lanny Davis admits being anonymous source in CNN Report.” @BretBaier  Oh well, so much for CNN saying it wasn’t Lanny. No wonder their ratings are so low, it’s FAKE NEWS!”

Donald J. Trump

@realDonaldTrump

“Lanny Davis admits being anonymous source in CNN Report.” @BretBaier Oh well, so much for CNN saying it wasn’t Lanny. No wonder their ratings are so low, it’s FAKE NEWS!

Nearly two hours after Trump’s first tweet, Don Jr. jumped off the turnbuckle and tag-teamed CNN and Bernstein, who he called a “leftist hack” peddling “literal fake news.”

Donald Trump Jr.

@DonaldJTrumpJr

Comical to watch @CNN covering for leftist hack @carlbernstein. He & Obama staffer @jimsciutto obviously got story wrong. CNN “stands by” it anyway, defending literal fake news. 3 “reporters” were fired for false CNN hit on @Scaramucci & this is FAR worse! https://www.washingtonpost.com/politics/attorney-for-michael-cohen-backs-away-from-confidence-that-cohen-has-information-about-trumps-knowledge-on-russian-efforts/2018/08/26/09d7f26e-a876-11e8-97ce-cc9042272f07_story.html 

And once again:

Donald J. Trump

@realDonaldTrump

END

Trump slams the heads of CNN and NBC

(courtesy zerohedge)

Trump Slams Heads Of CNN, NBC; Says Media Only Cares About “Hatred And Agenda”

In a now traditional daily spectacle, President Trump ripped CNN President Jeff Zucker on Twitter Thursday morning, saying that network’s ratings “suck” and Zucker should be fired, amid the growing feud between the president and the news channel.

“The hatred and extreme bias of me by @CNN has clouded their thinking and made them unable to function. But actually, as I have always said, this has been going on for a long time,” the president tweeted adding that “Little Jeff Z has done a terrible job, his ratings suck, & AT&T should fire him to save credibility!”

Donald J. Trump

@realDonaldTrump

The hatred and extreme bias of me by @CNN has clouded their thinking and made them unable to function. But actually, as I have always said, this has been going on for a long time. Little Jeff Z has done a terrible job, his ratings suck, & AT&T should fire him to save credibility!

Trump and CNN have been clashing all week after the president tweeted that CNN was being ripped apart for “being caught in a major lie and refusing to admit the mistake,” pointing specifically to veteran journalist Carl Bernstein. Bernstein wrote an article in July that accused the president of having prior knowledge of the Trump Tower meeting between Trump campaign personnel and Russians. However, subsequently Lanny Davis, the attorney for former Trump lawyer Michael Cohen, told The Washington Post over the weekend that he was an anonymous source behind said story.

Davis then told NBC News that acting as that source was “a major mistake for which I am 100 percent sorry. I never should have done it unless I was certain and could prove it.”

Other news outlets took down their versions of the CNN report following Davis’s latest comments, however CNN has kept it up, even though it specifically said that “contacted by CNN, one of Cohen’s attorneys, Lanny Davis, declined to comment.”

And now that he is commenting, CNN refuses to publish a retraction. Instead, CNN tweeted Wednesday that CNN does not lie, defending Bernstein

Trump then shifted his focus and targeted NBC Chairman Andrew Lack in a subsequent tweet.

“What’s going on at @CNN is happening, to different degrees, at other networks – with @NBCNews being the worst. The good news is that Andy Lack(y) is about to be fired(?) for incompetence, and much worse. When Lester Holt got caught fudging my tape on Russia, they were hurt badly!”

Donald J. Trump

@realDonaldTrump

What’s going on at @CNN is happening, to different degrees, at other networks – with @NBCNews being the worst. The good news is that Andy Lack(y) is about to be fired(?) for incompetence, and much worse. When Lester Holt got caught fudging my tape on Russia, they were hurt badly!

Finally, Trump lashed out at the media in general, which he again called the “enemy of the people”, and tweeted that he just “cannot state strongly enough how totally dishonest much of the Media is” adding that “truth doesn’t matter to them, they only have their hatred & agenda. This includes fake books, which come out about me all the time, always anonymous sources, and are pure fiction. Enemy of the People!”

Donald J. Trump

@realDonaldTrump

The news from the Financial Markets is even better than anticipated. For all of you that have made a fortune in the markets, or seen your 401k’s rise beyond your wildest expectations, more good news is coming!

In this context, Trump also appeared to clarify that the departure of White House lawyer Don McGahn had little to do with Ivanka and Jared, tweeting that “Ivanka Trump & Jared Kushner had NOTHING to do with the so called “pushing out” of Don McGahn.The Fake News Media has it, purposely,so wrong! They love to portray chaos in the White House when they know that chaos doesn’t exist-just a “smooth running machine” with changing parts!”

Trump concluded on a positive note, urging his followers to look at the market which hit 4 consecutive days of all time highs, and tweeted that “the news from the Financial Markets is even better than anticipated. For all of you that have made a fortune in the markets, or seen your 401k’s rise beyond your wildest expectations, more good news is coming!” It is not clear how many of Trump’s supporters actually have 401k’s.

Donald J. Trump

@realDonaldTrump

The news from the Financial Markets is even better than anticipated. For all of you that have made a fortune in the markets, or seen your 401k’s rise beyond your wildest expectations, more good news is coming!

END

Quite comical after Lanny Davis admits that he was the CNN source and he now states that his client has no knowledge that Trump knew of the Trump Tower meeting.  Bernstein: I stand by my reporting!!

No wonder CNN ratings are plummeting

 

(courtesy zerohedge)

“Sloppy” Carl Bernstein Hits Back At Trump: “I Stand By My Reporting” 

Journalist Carl Bernstein hit back against insults lobbed by President Trump on Wednesday, saying he stands by his July report that then-candidate Trump had prior knowledge of the 2016 Trump Tower meeting, something which Michael Cohen, Trump’s former attorney, was allegedly prepared to tell special counsel Robert Mueller.

“I have spent my life as a journalist bringing the truth to light, through administrations of both parties,” Bernstein tweeted at Trump. “No taunt will diminish my commitment to that mission, which is the essential role of a free press. @CNN stands by its story, and I stand by my reporting,” tweeted Bernstein.

Carl Bernstein

@carlbernstein

.@realdonaIdtrump– I have spent my life as a journalist bringing the truth to light, through administrations of both parties. No taunt will diminish my commitment to that mission, which is the essential role of a free press. @CNN stands by its story, and I stand by my reporting.

Bernstein’s tweet follows a similar defense from CNN, which reads “Make no mistake, Mr. President, CNN does not lie.”

Donald J. Trump

@realDonaldTrump

CNN is being torn apart from within based on their being caught in a major lie and refusing to admit the mistake. Sloppy @carlbernstein, a man who lives in the past and thinks like a degenerate fool, making up story after story, is being laughed at all over the country! Fake News

CNN Communications

@CNNPR

Make no mistake, Mr. President, CNN does not lie. We report the news. And we report when people in power tell lies. CNN stands by our reporting and our reporters. There may be many fools in this story but @carlbernstein is not one of them.

Except here’s the lie:

Lanny Davis – Cohen’s attorney and lifelong friend of the Clintons later admitted that he was the source for CNN’s story amid massive backpedaling over the claim, yet CNN specifically notes in the article that Davis declined to comment: 

Contacted by CNN, one of Cohen’s attorneys, Lanny Davis, declined to comment.

So either Davis is lying or CNN is, and CNN hasn’t refuted Davis’s claim that he was a source. Instead, they doubled down and insisted he wasn’t the only source.

In a Wednesday night tweet, President Trump wrote “CNN is being torn apart from within based on their being caught in a major lie and refusing to admit the mistake,” Trump tweeted Wednesday evening. “Sloppy @carlbernstein, a man who lives in the past and thinks like a degenerate fool, making up story after story, is being laughed at all over the country! Fake News”

Donald J. Trump

@realDonaldTrump

CNN is being torn apart from within based on their being caught in a major lie and refusing to admit the mistake. Sloppy @carlbernstein, a man who lives in the past and thinks like a degenerate fool, making up story after story, is being laughed at all over the country! Fake News

Degenerate fool? 

Does Trump know something we don’t? A 1989 Wahington Post exposé on Bernstein offers some clues – revealing that his angry, cheated-on ex-wife published a novel which “portrays a Bernstein-like character as an emotionally empty, self-absorbed, narcissistic man capable of having sex with venetian blinds.

When ABC Washington offered Bernstein a job as the Washington bureau chief in the 80s, the “power seemed to go to his head,” reported the Post(h/t Josh Caplan)

“I gotta tell you, at ABC, he was just a terrible screw-up. It’s awful to say it. It was awful to watch it.” About this time, people noticed that Bernstein was drinking more heavily. His life had gone beyond chaotic. While Nora was pregnant with their second child, Bernstein had his now-notorious affair with Margaret Jay, wife of the British ambassador. –Wahington Post

Perhaps this is what the President was referring to?

Later Wednesday evening, a feisty President Trump tweeted: “Lanny Davis admits being anonymous source in CNN Report.” @BretBaier  Oh well, so much for CNN saying it wasn’t Lanny. No wonder their ratings are so low, it’s FAKE NEWS!”

Donald J. Trump

@realDonaldTrump

“Lanny Davis admits being anonymous source in CNN Report.” @BretBaier Oh well, so much for CNN saying it wasn’t Lanny. No wonder their ratings are so low, it’s FAKE NEWS!

Nearly two hours after Trump’s first tweet, Don Jr. chimed in, calling Bernstein a “leftist hack” peddling “literal fake news.”

Donald Trump Jr.

@DonaldJTrumpJr

Comical to watch @CNN covering for leftist hack @carlbernstein. He & Obama staffer @jimsciutto obviously got story wrong. CNN “stands by” it anyway, defending literal fake news. 3 “reporters” were fired for false CNN hit on @Scaramucci & this is FAR worse! https://www.washingtonpost.com/politics/attorney-for-michael-cohen-backs-away-from-confidence-that-cohen-has-information-about-trumps-knowledge-on-russian-efforts/2018/08/26/09d7f26e-a876-11e8-97ce-cc9042272f07_story.html 

end

WE WILL SEE YOU ON FRIDAY NIGHT.

 

 

HARVEY

 

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