SEPT 6/JOBS REPORT TOMORROW SO EXPECT VOLATILITY IN THE GOLD/SILVER SECTOR/GOLD RISES $3.05 TO $1198.95/SILVER IN THE DOLDRUMS AS IT SUFFERS ANOTHER 4 CENT LOSS TO $14.16/USA IS SET TO INITIATE TARIFFS AGAINST CHINA WHO ARE ALSO PREPARING A RECIPROCAL TARIFF AGAINST THE USA/HUGE FALLOUT FROM THE “SENIOR” TRUMP OFFICIAL OP ED/TRUMP STATES THAT HE MAY DECLASSIFY MANY DOCUMENTS ON THE FISA APPLICATIONS AND BRUCE OHR/

 

GOLD: $1198.95 UP  $3.05 (COMEX TO COMEX CLOSINGS)

Silver:   $14.16   DOWN 4 CENTS (COMEX TO COMEX CLOSING)

 

Closing access prices:

Gold $1200.25

silver: $14.15

 

 

For comex gold:

AUGUST/

 

And now Sept:

NUMBER OF NOTICES FILED TODAY FOR SEPT CONTRACT:  5 NOTICE(S) FOR 500  oz

Total number of notices filed so far for Sept:  435 for 43,500 (1.353 tonnes)

 

 

For silver: 

Sept

291 NOTICE(S) FILED TODAY FOR

1,455,000 OZ/

Total number of notices filed so far this month: 4959 for 24,795,000 oz

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Bitcoin: BID $6342/OFFER $6427: DOWN  $518(morning)

Bitcoin: BID/ $6411/offer $6496: DOWN  $453(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: $1206.18

NY price  at the same time:$1199.00

 

PREMIUM TO NY SPOT: $7.18

XX

Second gold fix early this morning: $ 1206.02

 

 

USA gold at the exact same time:$1197.00

 

PREMIUM TO NY SPOT:  $7.02

XXXX

 

China is controlling the gold market

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

Let us have a look at the data for today

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In silver, the total OPEN INTEREST FELL BY A CONSIDERABLE 2349 CONTRACTS FROM 212,391 UP TO 210,042 DESPITE YESTERDAY’S SMALL 4 CENT FALL IN SILVER PRICING AT THE COMEXTODAY WE  MOVED CONSIDERABLY FURTHER AWAY FROM LAST MONTH’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 , 6 MILLION OZ FOR AUGUST AND NOW OVER 31 MILLION OZ STANDING IN SEPTEMBER. AS WELL WE ARE WITNESSING 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 HUMONGOUS SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:

EFP’S FOR SEPT.  1971 EFP’S FOR DECEMBER AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 1971 CONTRACTS. WITH THE TRANSFER OF 1971 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 1971 EFP CONTRACTS TRANSLATES INTO 9.855MILLION OZ  ACCOMPANYING:

1.THE 4 CENT RISE IN SILVER PRICE AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES WHICH STOOD FOR THE JUNE/2018 COMEX DELIVERY MONTH. (5.420 MILLION OZ);  30.370 MILLION OZ  STANDING FOR DELIVERY IN JULY, FOR AUGUST: 6.065 MILLION OZ AND NOW 30.550 MILLION  OZ STANDING SO FAR IN SEPT.

 

 

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

10,796 CONTRACTS (FOR 3 TRADING DAYS TOTAL 10,796 CONTRACTS) OR 53.980 MILLION OZ: (AVERAGE PER DAY: 3598 CONTRACTS OR 17.99 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF SEPT:  53.980 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 7.71% 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:           2,091.81    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

ACCUMULATION FOR AUGUST 2018:                                      205.23          MILLION OZ.

RESULT: WE HAD A CONSIDERABLE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 2349 DESPITE THE 4 CENT RISE IN SILVER PRICING AT THE COMEX YESTERDAY. THE CME NOTIFIED US THAT WE HAD A GOOD SIZED EFP ISSUANCE OF 1971  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 SMALL SIZED: 336 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:

i.e 1971 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A DECREASE OF 2349  OI COMEX CONTRACTS. AND ALL OF THIS GAIN IN DEMAND HAPPENED WITH A SMALL 4 CENT GAIN IN PRICE OF SILVER  AND A CLOSING PRICE OF $14.20 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, IN AUGUST ANOTHER BIG 6.065 MILLION OZ IN A NON ACTIVE MONTH AND NOW IN SEPTEMBER AN INITIAL MONSTROUS 30.330 MILLION OZ OF SILVER STANDING FOR DELIVERY… NOBODY IS PAYING ATTENTION TO THE HUGE NUMBER OF PHYSICAL OUNCES STANDING FOR SILVER THESE PAST SEVERAL MONTHS.

 

In ounces AT THE COMEX, the OI is still represented by OVER 1 BILLION oz i.e. 1.054 MILLION OZ TO BE EXACT or 150% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT AUGUST MONTH/ THEY FILED AT THE COMEX: 291 NOTICE(S) FOR 1,455,000 OZ OF SILVER

IN SILVER,PRIOR TO TODAY, WE  SET THE NEW COMEX 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   )  FOR AUGUST 6.065 MILLION OZ. AND NOW SEPT:  AN INITIAL HUGE 30.550 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 VERY STRONG SIZED 6909 CONTRACTS DOWN TO 466,443 DESPITE THE GAIN IN THE COMEX GOLD PRICE/YESTERDAY’S TRADING (A RISE IN PRICE OF $2.30)THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A GOOD  SIZED 5303 CONTRACTS:

OCTOBER HAD EFP’S ISSUED AND, DECEMBER HAD AN ISSUANCE OF 5303 CONTACTS  AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 466,209. 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 SMALL SIZED OI LOSS IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 1606 CONTRACTS:  6909 OI CONTRACTS DECREASED AT THE COMEX AND 5,303 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI LOSS:  1606 CONTRACTS OR 160,600 OZ = 4.955 TONNES.  AND ALL OF THIS LACK OF DEMAND  OCCURRED WITH A SMALL GAIN IN THE PRICE OF GOLD/ YESTERDAY TO THE TUNE OF $2.30

 

 

 

YESTERDAY, WE HAD 15652 EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF SEPT : 25,285 CONTRACTS OR 2,528,500 OZ OR 62.15 TONNES (2 TRADING DAYS AND THUS AVERAGING: 9991 EFP CONTRACTS PER TRADING DAY OR 999,100 OZ/ TRADING DAY),,

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 12 TRADING DAYS IN  TONNES: 62.15 TONNES

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

THUS EFP TRANSFERS REPRESENTS 78.64/2550 x 100% TONNES =  3.40% OF GLOBAL ANNUAL PRODUCTION SO FAR IN JULY ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:     5,275.59*  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                       488.54  TONNES  (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 VERY STRONG SIZED DECREASE IN OI AT THE COMEX OF 6909 WITH THE LOSS IN PRICING ($7.55 THAT GOLD UNDERTOOK YESTERDAY) // .  WE ALSO HAD A STRONG NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 5303 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 5303 EFP CONTRACTS ISSUED, WE HAD A GAIN OF 628 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

5303 CONTRACTS MOVE TO LONDON AND 6909 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the LOSS in total oi equates to 4.955 TONNES). ..AND THIS LOSS IN DEMAND OCCURRED WITH THE GAIN OF $2.30 IN YESTERDAY’S TRADING AT THE COMEX.

 

 

we had: 5 notice(s) filed upon for 50oz of gold at the comex.

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

GLD...

WITH GOLD UP $3.05  TODAY: / 

NO CHANGE IN GOLD INVENTORY AT THE GLD/

 

 

 

/GLD INVENTORY   746.92 TONNES

Inventory rests tonight: 746.92 tonnes.

TO ALL INVESTORS THINKING OF BUYING GOLD THROUGH THE GLD ROUTE: YOU ARE MAKING A TERRIBLE MISTAKE AS THE CROOKS ARE USING WHATEVER GOLD COMES IN TO ATTACK BY SELLING THAT GOLD.  IT SURE SEEMS TO ME THAT THE GOLD OBLIGATIONS AT THE GLD EXCEED THEIR INVENTORY

SLV/

WITH SILVER DOWN 4  CENTS TODAY

A SLIGHT CHANGE IN SILVER INVENTORY AT THE SLV; TO PAY FOR FEES:

A WITHDRAWAL OF 147,000 OZ

 

/INVENTORY RESTS AT 329.709 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 CONSIDERABLE SIZED 2349 CONTRACTS from 212,291 DOWN TO  210,042  AND MOVING A LITTLE FURTHER FROM  THE NEW COMEX RECORD SET LAST  MONTH AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..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:

 

EFP CONTRACTS FOR SEPTEMBER, 1971 CONTRACTS FOR DECEMBER AND  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1971 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 2349 CONTRACTS TO THE 1971 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A NET LOSS OF 336 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 1.680 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, A STRONG 6.065 MILLION OZ FOR AUGUST.. AND NOW A HUGE 30.550  MILLION OZ INITIALLY STAND FOR SILVER IN SEPTEMBER….

 

 

RESULT: A CONSIDERABLE SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE 4 CENT PRICING GAIN THAT SILVER UNDERTOOK IN PRICING YESTERDAYBUT WE ALSO HAD A  GOOD SIZED 1971 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR SEPTEMBER, 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 12.74 POINTS OR 0.47%   /Hang Sang CLOSED DOWN 260.03 POINTS OR 0.99%/   / The Nikkei closed DOWN 92.89 POINTS OR 0.41%/Australia’s all ordinaires CLOSED DOWN 1.13%  /Chinese yuan (ONSHORE) closed UP  at 6.8318 AS POBC HALTS ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER/Oil UP to 68.77 dollars per barrel for WTI and 77.50 for Brent. Stocks in Europe OPENED RED //.  ONSHORE YUAN CLOSED  UP AT 6.8318 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8423: HUGE DEVALUATION/PAST SEVERAL DAYS STOPS// TRADE TALKS NOT DOING TOO GOOD   : /ONSHORE YUAN TRADING  STRONGER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING  STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

 

 

 

 

3A/NORTH KOREA/SOUTH KOREA

i)North Korea/South Korea/USA/

Trump responds in kind to north Korea’s pledge of denuclearizaton

( zerohedge)

 

 

 

b) REPORT ON JAPAN

LATE TONIGHT:

He still have not finished with China, the EU and Canada and now Trump hints that he may initiate a trade war with Japan.  Now that battle will be interesting especially with Japan’s closed market

( zerohedge)

3 C/  CHINA

China vows to retaliate if the uSA imposes the next 200 billion dollars worth of tariffs

( zerohedge)

 

4/EUROPEAN AFFAIRS

 

 

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

i)RUSSIA

the Rouble tumbles to 69.63 roubles/per USA dollar as the markets are reacted to the UK poisoning.  Russian 10 yr yields rise to 9 per cent. Medvedev comments that sanctions are starting to hurt Russia

( zerohedge)

 

 

6. GLOBAL ISSUES

 

 

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

i)Rich Asians have been advised to increase their gold holdings amid the emerging market turmoil

( South China Morning post/GATA)

ii)The following story has not been verified.  First, why would China sell 80 billion dollars worth of gold to Russia?

unless it is oil related..
( Pravda)
iii)We have reported on this topic to you last week.  India has purchased gold for the first time since 2009.  It now seems that the government of India will taking lessons from its citizens as these guys have been hoarding gold as the true source of money for decades.(courtesy RT)

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

 

i)Market trading /GOLD/MARKET MOVERS:

MARKET TRADING

 

ii)Market data

Hard data, USA factory orders tumble in July as war spending slumps

( zerohedge)

 

iii)USA ECONOMIC/GENERAL STORIES

a)Oh No this cannot be so…Wells Fargo, such fine and upstanding citizens have been found to have widespread document altering.
( zerohedge)

b)

Another good indicator that the USA economy turned on a dime in July.  Challenger,Christmas Gray announces another 38,472 job cuts in August

(courtesy Challenger,Christmas Gray)

iv)SWAMP STORIES

a)Trump on the issue of a possible government shutdown

( zerohedge)

b)Trump orders the NY Times to reveal the Op-ed source.  The pundits believe it is either Pence or Sessions

( zerohedge)

c)Sean Hannity slams the “swamp sewer creature” behind the anonymous New York Times piece.  Whoever wrote it, (if it is real) is certainly a betrayal to Trump.  It is interesting that Mike Pence  used the term “lodestar” in previous speeches 8 times.

( zero hedge)

 

d)Trump must declassify the FISA documents and the Bruce Ohr hand written notes and this will expose the crooks

( zerohedge)

 

e)A grand jury as convened in Washington looking into the lying by Andrew mcCabe.

( zerohedge)

 

 

Let us head over to the comex:

 

The total gold comex open interest FELL BY A CONSIDERABLE SIZED 6909 CONTRACTS DOWN to an OI level 466,209 DESPITE THE RISE IN THE PRICE OF GOLD ($2.30 GAIN/ 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. IT IS UNUSUAL TO SEE THE OPEN INTEREST IN GOLD CONTINUE TO CONTRACT AS WE START A NEW MONTH (SIMILAR TO WHAT WE ARE WITNESSING IN SILVER).  MAYBE THE BANKS ARE TRYING TO UNLOAD AS MANY AS POSSIBLE OF THEIR SHORT PAPER GOLD/SILVER CONTRACTS.

 

WE ARE NOW IN THE  NON ACTIVE DELIVERY MONTH OF SEPT..  THE CME REPORTS THAT THE BANKERS ISSUED A  GOOD SIZED COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 5,303 EFP CONTRACTS WERE ISSUED:

OCTOBER: 0 EFP’S AND DECEMBER:  5303 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  5303 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 1606 TOTAL CONTRACTS IN THAT 5,303 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST 6909 COMEX CONTRACTS.

NET LOSS ON THE TWO EXCHANGES:  1606 contracts OR 160600  OZ OR 4.955 TONNES.

Result: A STRONG SIZED DECREASE IN COMEX OPEN INTEREST DESPITE THE RISE IN PRICE/ YESTERDAY (ENDING UP WITH THE GAIN IN PRICE OF $2.30). THE  TOTAL OPEN INTEREST LOSS ON THE TWO EXCHANGES:  1606 OI CONTRACTS..

We are now in the active contract month of SEPTEMBER. For the September contract month, we lost contracts and thus the number of  open interest contracts standing for gold in this front month is 92 contracts. We had 10 notices filed  yesterday so we surprisingly again gained 1 contract or an additional 100 oz will stand for gold and these guys refused to accept a fiat bonus and transfer to London.  This is very strange for gold to see queue jumping so early in  the delivery cycle.  We have been witnessing this phenomenon for the past 17 months in silver.

 

 

 

 

 

THE NEXT ACTIVE DELIVERY MONTH IS  OCTOBER AND HERE THE OI LOST 3345 CONTRACTS DOWN TO 45,201. NOVEMBER SAW 0 GAIN IN CONTRACTS TO STAND AT 17 CONTRACTS. DECEMBER SAW ITS OPEN INTEREST FALL BY 3536 CONTRACTS DOWN TO 358,994.

WE HAD 5 NOTICES FILED AT THE COMEX FOR 500 OZ.

 

FOR THE UPCOMING SEPT GOLD CONTRACT MONTH;

 

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

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

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total silver OI FELL BY A CONSIDERABLE SIZED 2349 CONTRACTS FROM 212,391 DOWN TO 210,042 (AND 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 DESPITE A 4 CENT GAIN IN PRICING.

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF SEPT.AND, WE WERE  INFORMED THAT WE HAD A GOOD SIZED 1971 EFP CONTRACTS:

FOR SEPT:  0 CONTRACTS  AND FOR DECEMBER: 1971 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: 1971.  ON A NET BASIS WE GAINED 398 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED 2349 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 1971 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET LOSS ON THE TWO EXCHANGES:  A SMALL 336 CONTRACTS…AND ALL OF THIS DEMAND OCCURRED WITH A TINY 4 CENT GAIN

 

 

 

The next active delivery month after August for silver is September and here the OI FELL by 549 contracts DOWN to 1442.

We had 593 notices filed on yesterday so we gained 44  number of contracts or 220,000 oz will  stand at the comex as these guys refused to accept a fiat bonus and thus they did not morph into London based forwards. For the past 17 months starting in April 2017, we have been witnessing on a constant basis queue jumping as the commercials seek physical silver immediately after first day notice. Today after a one day hiatus, queue jumping returned.

 

 

 

 

October LOST 17  contracts to stand at 647. November saw a gain of 0 contracts to stand at 14.

After Nov., the next big delivery month is December and here the OI FELL by 1687 contracts DOWN to 185,289 contracts.

We had 291 notice(s) filed for 1,455,000 OZ for the SEPTEMBER 2018 COMEX contract for silver

 

 

 

Trading Volumes on the COMEX

 

PRELIMINARY COMEX VOLUME FOR TODAY: 285,275 contracts

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  219,804 contracts

 

 

 

 

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

 

 

 

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. THUS WE ARE WAY AHEAD OF LAST YEAR AS ALREADY WE HAVE 30.550 MILLION OZ OF SILVER INITIALLY STAND. WE WILL NO DOUBT PASS LAST YEAR’S TOTAL OF 32.875 MILLION OZ ONCE SEPTEMBER ENDS AS THE BANKS SCRAMBLE FOR PHYSICAL SILVER.

 

 

 

 

 

 

 

INITIAL standings for SEPTEMBER/GOLD

SEPT. 6-/2018.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
8646.291 oz
BRINKS
HSBC
INT.DELAWARE
Deposits to the Dealer Inventory in oz NIL oz
Deposits to the Customer Inventory, in oz  

nil

oz

 

 

No of oz served (contracts) today
5 notice(s)
 500 OZ
No of oz to be served (notices)
87 contracts
(8700 oz)
Total monthly oz gold served (contracts) so far this month
435 notices
43500 OZ
1.353 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 and still no goldentering the comex vaults.  However are we witnessing some investors leaving the comex because they are afraid that the gold there is unallocated.  Also for the first time ever we dropped below 5 tonnes in the registered gold category.

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 3 withdrawals out of the customer account:
i)( Out of HSBC: 2,602.629 oz
ii) Out of brinks: 3728.862 oz
III) out of Int. Delaware: 2314.800 oz (72 kilobars)
total customer withdrawals:  8646.291 oz
we had 0 customer deposit
total customer deposits: nil oz
we had 2 adjustments
and it may indicate a settlement for gold:
i) Out of Delaware:;  4096.989 oz leaves the dealer and enters the customer account of Delaware
ii) Out of Int Delaware:  9934.35 oz leaves the dealer and enters the customer account of Int. Delaware

FOR THE SEPTEMBER CONTRACT MONTH)

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 5 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 1 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
To calculate the INITIAL total number of gold ounces standing for the SEPT. contract month, we take the total number of notices filed so far for the month (435) x 100 oz or 43,500 oz, to which we add the difference between the open interest for the front month of SEPT. (92 contracts) minus the number of notices served upon today (5 x 100 oz per contract) equals 52,200 OZ OR 1.6236 TONNES) the number of ounces standing in this non active month of SEPT

 

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

No of notices served (435 x 100 oz)  + {92)OI for the front month minus the number of notices served upon today (5 x 100 oz )which equals 52,200 oz standing OR 1.6236 TONNES in this NON  active delivery month of SEPTEMBER.

Strangely, we added 1 contract or an additional 100 oz will stand for physical gold at the comex and these guys refused to accept a fiat bonus to move their contracts over to London.  Let us see if this continues throughout the month as the commercials may be scrambling to obtain any physical gold they can.

 

 

 

 

 

THERE ARE ONLY 4.544 TONNES OF REGISTERED COMEX GOLD AVAILABLE FOR DELIVERY AGAINST 1.6236 TONNES STANDING FOR SEPTEMBER  

 

 

 

total registered or dealer gold:  146,102.034 oz or   4.544 tonnes
total registered and eligible (customer) gold;   8,380,049.816 oz 260.65 tonnes

IN THE LAST 25 MONTHS 94 NET TONNES HAS LEFT THE COMEX.

end

And now for silver

AND NOW THE AUGUST DELIVERY MONTH

SEPTEMBER INITIAL standings/SILVER

SEPT. 6/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
 61,579.300 oz CNT

 

 

Deposits to the Dealer Inventory
nil
oz
Deposits to the Customer Inventory
niloz
No of oz served today (contracts)
291
CONTRACT(S)
(1,455,000 OZ)
No of oz to be served (notices)
1151 contract
(5,755,000 oz)
Total monthly oz silver served (contracts) 4959 contracts

(24,795,000 oz)

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

we had 0 inventory movement at the dealer side of things

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

we had 0 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 everybody else:  0 oz

 

 

 

 

 

 

 

total customer deposits today: nil oz

we had  1 withdrawals from the customer account;

i) Out of CNT: 61,579.300 oz

 

 

 

 

total withdrawals: 61,579.300 oz

we had 2  adjustment

i) out of CNT: 783,856.350 oz was adjusted out of the customer and this landed into the dealer account of CNT

ii) Out of Scotia:  597,499.700 oz was adjusted out of the dealer and this landed into the customer account of Scotia

this is probably a settlement in the delivery process.

 

 

 

 

 

 

total dealer silver:  88.391 million

total dealer + customer silver:  295.295 million oz

The total number of notices filed today for the SEPTEMBER. contract month is represented by 291 contract(s) FOR 1,455,000 oz. To calculate the number of silver ounces that will stand for delivery in SEPT., we take the total number of notices filed for the month so far at 4959 x 5,000 oz = 24,795,000 oz to which we add the difference between the open interest for the front month of SEPTEMBER. (1442) and the number of notices served upon today (291 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the SEPT/2018 contract month: 4959(notices served so far)x 5000 oz + OI for front month of SEPTEMBER(1442) -number of notices served upon today (291)x 5000 oz equals 30,550,000 oz of silver standing for the SEPT contract month.  This is a huge number of oz standing!!

We GAINED 44 contracts or an additional 220,000 oz will stand at the comex as they refused to morphed into London based forwards as well as not accepting a fiat bonus

 

 

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

ESTIMATED VOLUME FOR TODAY:  70,673 CONTRACTS   

 

 

CONFIRMED VOLUME FOR YESTERDAY: 71,420 CONTRACTS..

 

 

YESTERDAY’S CONFIRMED VOLUME OF 71,420 CONTRACTS EQUATES TO 357 million OZ  OR 51.1% 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 -3.57% (SEPT.4/2018)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.49% to NAV (SEPT 4/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -3.57%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 12.11/TRADING 11.63/DISCOUNT 4.04.

END

And now the Gold inventory at the GLD/

SEPT 6/WITH GOLD UP $3.05 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 746.92

SEPT 5/WITH GOLD UP $2.30 TODAY, WE HAD ANOTHER WHOPPER OF A WITHDRAWAL:  6.24 TONNES/INVENTORY RESTS AT 746.92 TONNES

SEPT 4/WITH GOLD DOWN $2.65: ANOTHER 2.65 TONNES OF GOLD LEAVE THE GLD/INVENTORY RESTS AT 755.16 TONNES/

AUGUST 31/WITH GOLD UP $2.15:ANOTHER WITHDRAWAL OF 2.06 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 757.81 TONNES

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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

SEPT 5/2018/ Inventory rests tonight at 746.92 tonnes

*IN LAST 450 TRADING DAYS: 184.09 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 350 TRADING DAYS: A NET 27.55 TONNES HAVE NOW BEEN REMOVED FROM GLD INVENTORY.

 

end

 

Now the SLV Inventory/

SEPT 6/WITH SILVER DOWN 4 CENTS TO: A SLIGHT CHANGE, A WITHDRAWAL OF 147,000 OZ AND THIS IS TO PAY FOR FEES/INVENTORY RESTS AT 329.709 MILLION OZ/

 

SEPT 5./WITH SILVER UP 4 CENTS: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.856 MILLION OZ/

SEPT 4/WITH SILVER DOWN 37 CENTS TODAY/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.856 MILLION OZ/

AUGUST 31/WITH SILVER DOWN ONE CENT TODAY/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 329.856 MILLION OZ/

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/

 

 

 

SEPT 6/2018:

Inventory 329.709 MILLION OZ

 

6 Month MM GOFO 1.98/ and libor 6 month duration 2.54

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

G0FO+ 1.98

 

libor 2.54 FOR 6 MONTHS/

GOLD LENDING RATE: .56%

XXXXXXXX

12 Month MM GOFO
+ 2.40%

LIBOR FOR 12 MONTH DURATION: 2.84

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.44

end

 

Major gold/silver trading /commentaries for THURSDAY

GOLDCORE/BLOG/MARK O’BYRNE.

 

 

Video: Gold S

 

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

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

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

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

(Andrew Maguire)

 Dear Harvey Organ,

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

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

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

https://t.me/kinesismoney

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

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

Kinesis Webinar

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

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

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

Kind Regards,

Kinesis Money
a:C/O ILS Fiduciaries (IOM) Limited, First Floor,Millennium House, Victoria Road, Douglas, Isle of Man IM2 4RW
    
END

 

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

Rich Asians have been advised to increase their gold holdings amid the emerging market turmoil

(courtesy South China Morning post/GATA)

Crazy rich Asians advised to increase gold holdings

amid market turmoil

 Section: 

Asia’s Super-Rich Advised to Add More Gold to Their Portfolios to Protect Assets Amid Storms Pounding Equity Markets

By Louise Moon
South China Morning Post, Hong Kong
Wednesday, September 5, 2018

Advisers to Asia’s super-rich think their clients should put more of their money into gold, taking advantage of price declines to buy the yellow metal amid volatile global markets and U.S.-China trade tensions, a new report says.

A survey of these advisers found a preference for gold holdings amounting to 5 to 10 percent of total assets. That is up from an earlier recommendation of 3 to 5 percent, according the report, “Going for Gold,” which was released today by U.S. financial services firm INTL FCStone.

Most advisers in the survey — 62 percent — said their clients should or maybe should increase their weighting in gold, versus 38 percent who said they should not. The survey was of 174 private banks, family offices, wealth management advisers, and other market experts in Asia.”Not only does Asia, and especially Singapore, offer a remarkably complete and professional gold market infrastructure, but the current global economic, financial, and geopolitical factors could be considered as highly supportive of the rationale to hold and grow the portions of gold in any [high net worth] portfolio,” said Martin Huxley, head of precious metals Asia at INTL FCStone. …… For the remainder of the report:https://www.scmp.com/business/commodities/article/2162861/asias-super-ri…
end
The following story has not been verified.  First, why would China sell 80 billion dollars worth of gold to Russia?
unless it is oil related..
(courtesy Pravda)

Russia buys gold from China

Russia » Economics

Russia buys gold from China. Most likely, Russia spent $80 billion of profit received from the sale of US Treasuries to purchase gold from China, Chinese news agencies report.

The Russian government has been taking measures to decrease the dependence of the Russian economy on the United States by disposing of US debt obligations and accumulating gold reserves. At the same time, Russia has become the largest buyer of gold from the Central Bank of China, the Phoenix newspaper wrote.

The yuan share in gold and foreign exchange reserves of the Central Bank of Russia has nearly tripled and neared the Canadian dollar, while gold and currency of the PRC constitute one-fifth of all reserve assets of the Central Bank,” the newspaper said.

However, according to the Nezavisimaya Gazeta newspaper, sources at Russian financial circles found the allegations in Chinese media strange. According to unnamed sources, it would be strange for Russia to purchase gold for dollars when it is possible to buy gold for rubles. In addition, China has also been ranked as a major buyer of gold even though the Chinese authorities do not disclose the information about the amount of the nation’s gold reserves.

most likely, the opinion of Chinese analysts is based on the fact that the Moscow Stock Exchange and the Shanghai Gold Exchange signed a memorandum of understanding to develop cooperation between the two exchanges in the sphere of gold trade.

“Officially, the Central Bank of the Russian Federation does not discloses the sources, from where it buys gold, but this is not important. In general, the trend of the Russian economy to switch from the West to the East is getting stronger every time the West imposes new sanctions on Russia,” financial analyst Valery Bezuglov told the newspaper.

The Central Bank of Russia withdrew about 80 billion dollars from US Treasuries from January till May 2018. It remains unknown what the bank spent the money on afterwards.

See more at http://www.pravdareport.com/news/russia/economics/06- 09-2018/141543-russia_gold-0/

-END-

We have reported on this topic to you last week.  India has purchased gold for the first time since 2009.  It now seems that the government of India will taking lessons from its citizens as these guys have been hoarding gold as the true source of money for decades.

(courtesy RT)

India getting rid of US Treasury securities and buying gold

Published time: 6 Sep, 2018 10:38

The world’s second biggest gold consumer continues to replenish its bullion reserves, a Reserve Bank of India (RBI) report shows. At the same time, New Delhi is slowly but surely reducing its share of US debt bonds.

The annual report from the Indian financial regulator reveals that the country followed other BRICS partners in adding physical gold to its foreign exchange reserves. The RBI reportedly bought 8.46 metric tons of gold during the last fiscal year ending in March.

As of the end of June, the country’s central bank held 566.23 metric tons of gold against 557.77 metric tons a year ago. The RBI purchased gold for the first time in nearly a decade. The regulator acquired 200 metric tons of the precious metal in 2009 shortly after the global financial crisis.

According to the RBI, India’s international reserves rose by five percent from June 2017 to June 2018 in comparison to the 6.3 percent growth seen in the same period in the previous year.

“Diversification of India’s Foreign Currency Assets continued during the year with attention being ascribed to risk management, including cybersecurity risk. The gold portfolio has also been activated,” the report added.

Meanwhile, the country’s share of US sovereign debt saw a gradual decline from $157 billion in March to $148.9 billion by May, according to the latest US Treasury report.

Eliminating US sovereign bonds has recently become a trend among major holders. According to the latest statistics, Russia dumped 84 percent of its holdings during 2018, while Turkey’s share of US Treasuries fell by 42 percent during the first half of the current year.

At the same time, Japan and China, the biggest holders of the US papers also reduced their shares, albeit insignificantly.

https://www.rt.com/business/437760-india-gold-reserves- us-treasuries/

-END-

_____________________________________________________________________________________________________________________________________________________________________________________

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 UP TO 6.8318/HUGE DEVALUATION FOR THE PAST FOUR WEEKS STOPS/CHINESE COMING TO USA FOR TRADE TALKS IN NOVEMBER //OFFSHORE YUAN:  6.8519   /shanghai bourse CLOSED DOWN 12.74 POINTS OR 0.47% /HANG SANG CLOSED DOWN 260.03 POINTS OR 0.99%
2. Nikkei closed DOWN 92.89 POINTS OR 0.41%/USA: YEN FALLS TO 111.29/

3. Europe stocks OPENED DEEPLY IN THE RED  EXCEPT PARIS

/USA dollar index FALLS TO 95.08/Euro RISES TO 1.1628

3b Japan 10 year bond yield: FALLS TO . +.11/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 111.29/ 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:: 68.77  and Brent: 77.50

3f Gold UP/JAPANESE Yen U/ CHINESE YUAN   ON SHORE UP/OFF- SHORE: UP

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO +.370%/Italian 10 yr bond yield UP to 3.05% /SPAIN 10 YR BOND YIELD UP TO 1.45%

3j Greek 10 year bond yield FALLS TO : 4.45

3k Gold at $1205.35 silver at:14.25   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 14 /100 in roubles/dollar) 68.36

3m oil into the 68 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 111.29 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 0.9693 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1272 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now POSITIVE territory with the 10 year RISING to +0.37%

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 2.90% early this morning (THIS IS DEADLY TO ALL MARKETS). Thirty year rate at 3.07%

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

6.  TURKISH LIRA:  UP  TO 6.5758

“They Just Want To Get Out”: Emerging Stocks On

Verge Of Bear Market As New Trade War Looms

US equity futures rose slightly as European shares rebounded after Asian equity markets opened on Thursday in a sea of red as investors expressed growing concern over the deepening emerging market sell-off, before recovering slightly later in the morning even as Trump was preparing to launch a new trade war with China, announcing another $200BN in Chinese tariffs.

 

While focus remains on efforts from Argentina to Indonesia to sustain confidence, the potential for President Donald Trump to announce another round of tariff hikes on Chinese imports as soon as Thursday also looms large.

Traders were skeptical about taking on more risk ahead of tomorrow’s U.S. jobs report, most saw more pain for developing nations, particularly with President Trump set to follow through with a plan to launch another $200 billion of additional tariffs on Chinese imports after a consultation period ends Thursday. Meanwhile, China warned again that it will be forced to retaliate, if the U.S. ignores resistance in public hearings and imposes additional tariffs, said Gao Feng, a Ministry of Commerce spokesman, at a briefing on Thursday in Beijing. The two nations have maintained contact on a working level since Vice Commerce Minister Wang Shouwen visited the U.S. last month, Gao said.

The good news is that the rout that has roiled emerging currencies took a breather on Thursday, as the Turkish lira and South African rand led a recovery in emerging market currencies resulting in a modest stabilization in EM FX, helping support risk assets across the board with only the Philippine peso sliding.

 

The South African government reiterated plans to reform the economy which supported ZAR, helping push TRY and MXN higher. Offsetting this was the AUD, which was pressured overnight as 2 more of the large banks raise mortgage rates; Elsewhere, the SEK weakened after Riksbank priced out an Oct. hike and hinted that the first hike could take place in 2019. The offshore yuan rallied mid-European morningdriven by reports of a major Chinese bank buying in shorter end of the forward curve, similar to prior moves taken to limit yuan depreciation.

 

And while emerging currencies reversed losses helped further by a dip in the dollar which brought some relief, as did a gain in copper prices, the MSCI Emerging Market Equity Index dropped for a seventh day, and was on the cusp of a bear market down just why of 20% from its January highs, with few signs of relief from a sell-off that’s battered developing economies around the world. Analysts are now questioning whether the rout merely reflects a series of one-off hits or indicates the beginning of a broader malaise.

 

We’ve had a series of idiosyncratic shocks, but this week it has felt like more of a generalised sell-off than an idiosyncratic one,” said Gene Frieda, a strategist at Pimco in London. “Some investors just want to get out now.”

As noted yesterdaythe rout across emerging markets is now the longest since the global financial crisis, or specifically 222 days for stocks, 155 days for currencies, and 240 days for local government bonds. The duration of each selloff – as calculated by Bloomberg – had taken even the most ardent bears by surprise because “not one of the seven biggest selloffs since the financial crisis – including the so-called taper tantrum – inflicted such pain for so long on the developing world.”

 

On Thursday, Asian stocks opened broadly lower as tech sectors were pressured by yesterday’s Nasdaq sell-off. China’s CSI 300 index of mainland listed companies opened nearly 2% lower, following disappointing data released on Wednesday on China’s manufacturing sector and ahead of potential new trade tariffs imposed by the US, before paring losses later in the day. The Shanghai Composite dropped back under 2,700.

 

Indonesia’s stock market also came under pressure as overseas investors have withdrawn some $3.7bn from the market so far this year, according Bloomberg data, pushing the Jakarta Stock Exchange Composite index down 10 per cent year-to-date. In Japan, the Topix index opened the day 0.7% lower, after a 6.7 magnitude quake struke the northern island of Hokkaido. Stocks in the Philippines were the biggest decliners across the developing world after inflation exceeded 6 percent for the first time since 2009.

Although Asian markets have so far fared better than their EM peers, analysts quoted by the FT cautioned that the region has its own problems. Morgan Stanley analysts said the stable renminbi had bolstered Asia over the past month, but added that “risks are building” in Asian currency markets. They said a pick-up in trade tensions would “not help these markets either”, but pointed out that the impact could be mitigated to some degree if the People’s Bank of China managed to keep the renminbi in check. “The momentum right now is quite strong, so you don’t want to stand in front of it,” said Tai Hui, chief market strategist for Asia-Pacific at JPMorgan Asset Management.

Elsewhere, European equity markets opened lower but ground back to flat as the Stoxx Europe 600 Index shook off two days of declines to trade little changed with Italy’s FTSE MIB (+0.4%) outperforming in a continuation of the trend observed in the past few days, while Spain’s IBEX (-0.6%) underperforms, weighed on by financial names with the IBEX 35 banking sector down over 1%. In terms of stock specifics, Safran (+6.1%) shares flew to the top of the Stoxx 600 following an impressive upgrade in guidance. Metal futures also bounced from recent lows with Copper future +1.8%, although the risk on mood may not last long: according to Bloomberg, European stocks are acting more and more like emerging markets as the correlation between the regions’ equities has been on the rise, climbing to 0.6 from 0.3 in June.

Futures on the Dow, S&P 500 and Nasdaq also pointed to a firmer open. Ten-year Treasuries climbed and European bonds were mixed.

In G-10 FX, havens led the way amid concern President Trump will order additional tariffs on China. The dollar slipped and Treasuries edged higher before tier-one data out of the U.S. Emerging markets and European stocks consolidated. The Swedish krona came under pressure after Riksbank said October isn’t a live meeting any more.

Elsewhere, the pound climbed after being whipsawed amid Brexit discussions. Gold advanced with copper. Bitcoin dropped after a report that Goldman Sachs was said to delay setting up a trading desk for cryptocurrencies.

In geopolitical news, a UK naval ship carried out a freedom of navigation operation near Chinese-controlled Paracel Islands in South China Sea, while reports added the ship did not enter China’s territorial waters but the actions suggested it doesn’t recognize China’s excessive claims on the region. There were later comments by China Foreign Ministry that the Royal Navy ship entered its territorial waters and that the Chinese navy warned it to leave, while it added that the UK should avoid provocative actions.

South Korean official stated that a summit will be held with North Korea on Sept. 18th-20th in Pyongyang to discuss practical measures for denuclearization of the peninsula and that North Korea Leader Kim reaffirmed commitment to denuclearization. The official added that North Korean Leader Kim expressed intent to cooperate closely with US and expressed regret over international community’s doubts of his will to denuclearize, while North Korean Leader Kim a also said that nuclear tests have become permanently impossible after the test site was dismantled and that he no longer intends to conduct long-range missile tests, while Kim’s trust in US President Trump is unchanged and is said to want to realize denuclearization during Trump’s first term.

Today key event, of course, is the deadline for the end of the public comment period concerning another potential round of tariffs on $200bn of China imports. Most economists believe the impact on China will be manageable, as officials have space to ease policy. There are however risks to the upside, if a positive trade deal is reached, which would see higher rates, a strong yuan, and less infrastructure spending.

In commodities, WTI and Brent futures traded marginally higher following yesterday’s retreat to below the USD 69.00/bbl and USD 77.50/bbl levels respectively (with the latter reclaiming the level in recent trade). The weekly API inventory report showed a smaller than expected draw in headline crude stockpiles with a muted reaction in the oil market. News flow has been light for the complex thus far. In terms of NHC updates, tropical depression Gordon continues to drift through Western Mississippi, threat of heavy rains and flooding will continue for several days, while Hurricane Olivia and Florence remain strong albeit still away from land. Traders will keeping an eye on the delayed weekly EIA crude inventory report due at 1600BST/1100EDT. The metals complex is broadly benefitting from the pullback in the dollar. Copper outperforms its peers amid upside in Chinese commodities.

Thursday Expected data include jobless claims and factory orders. Broadcom, Dell Technologies, Marvell Technology, and Palo Alto Networks are among companies reporting earnings.

Market Snapshot

  • S&P 500 futures up 0.1% to 2,891.50
  • STOXX Europe 600 down 0.04% to 375.53
  • MXAP down 0.6% to 160.41
  • MXAPJ down 0.7% to 517.07
  • Nikkei down 0.4% to 22,487.94
  • Topix down 0.7% to 1,692.41
  • Hang Seng Index down 1% to 26,974.82
  • Shanghai Composite down 0.5% to 2,691.59
  • Sensex up 0.2% to 38,110.97
  • Australia S&P/ASX 200 down 1.1% to 6,160.42
  • Kospi down 0.2% to 2,287.61
  • German 10Y yield rose 0.4 bps to 0.384%
  • Euro up 0.02% to $1.1632
  • Italian 10Y yield fell 8.2 bps to 2.664%
  • Spanish 10Y yield rose 0.3 bps to 1.452%
  • Brent futures up 0.5% to $77.64/bbl
  • Gold spot up 0.6% to $1,204.08
  • U.S. Dollar Index down 0.1% to 95.11

Top Overnight News

  • It’s “certainly a possibility” that President Trump will move ahead with tariffs on China after a public comment period ends Thursday, White House Press Secretary Sarah Sanders told reporters at the White House
  • Kim Jong Un said he’s open to accepting “stronger” denuclearization measures if the U.S. takes steps that acknowledge measures he’s already taken to suspend weapons testing, according to South Korean officials who met the North Korean leader in Pyongyang
  • Bank of Japan boosted purchases of 5-to-10 year bonds to offset a cut in frequency of operations in September, underscoring its intention to make no major changes in the near term after a July policy tweak
  • BOJ’s move to allow more flexibility in yield movements will delay achieving 2% inflation, board member Goushi Kataoka told business leaders in Yokohama
  • Russia is ready to take the emergency step of buying its own ruble debt if a new wave of U.S. sanctions threatens to upend the market
  • Italian budget package will be EU25-30b according to Il Sole; League and Five Star are looking for 2019 deficit of 2%-2.5% according to Messaggero
  • UniCredit and Intesa Sanpaolo were among 5 Italian banks that had their ratings outlook lowered by Fitch Ratings following the agency’s decision last week to revise Italy’s outlook to negative
  • German factory orders unexpectedly fell for a sixth month this year amid a slump in investment-goods demand from abroad, adding weight to concerns that trade tension may be starting to bite Europe’s largest economy
  • The gap in pricing between longer- maturity Japanese interest-rate swaps traded in Tokyo and in London has fallen to the lowest in a year, suggesting that overseas traders may be giving up on bets of BOJ normalization. Speculation over regulatory changes may also have driven the move
  • The former governor of Finland’s central bank is the new frontrunner in a Bloomberg survey of economists on who’ll succeed Mario Draghi in November 2019. His chief selling point, as the ECB prepares to unwind years of monetary stimulus, might be as a compromise candidate
  • Europe’s safest companies face the highest costs in the bond market for two years as the European Central Bank readies to wind down asset purchases
  • Citigroup Inc. is planning to promote bankers Tyler Dickson and Manolo Falco to run a reconstructed version of its investment banking operations, people familiar with the plan said
  • Trump on possible government shutdown at the end of the month: “If it happens, it happens”
  • Fed’s Kashkari: Wage growth has been quite low, could also see another rift to economy coming from emerging markets; Fed’s Bostic says economic risks perfectly balanced on both upside & downside
  • Riksbank holds rates at -0.50% as expected; tweaks rate path by ruling out Oct. hike and signaling first hike in Dec. or Feb.

Asian equity markets traded mostly lower after a similar lead from US where the Nasdaq underperformed and the tech sector saw its worst performance in over a month as social media executives testified at Congress. ASX 200 (-1.2%) and Nikkei 225 (-0.4%) were negative as Australia mirrored the tech rout stateside and with sentiment in Japan was dampened after the Hokkaido region was hit by a powerful earthquake which triggered large landslides and mass power outages. Elsewhere, Hang Seng (-0.7%) and Shanghai Comp. (flat) both opened lower although the latter then found support just below the 2700 level after stock-supportive measures including a proposed regulatory revision to permit more stock repurchases and with interest income from loans to smaller firms to be VAT-exempted. Finally, 10yr JGBs were higher with prices underpinned by the predominantly risk-averse tone in the region and amid the BoJ’s presence in the market in which it upped its purchases of 5yr-10yr maturities.

Top Asian News

  • Tencent Will Subject Players of its Top Game to Police ID Checks
  • BOJ Needs Extra Easing Not Extra Flexibility, Says Kataoka
  • China Says It Will Retaliate Based on U.S. Moves as Tariffs Near
  • Fugitive Jewelers Rob Indian Business of Trade Pricing Edge

European equities trade mixed (Euro Stoxx 50 +0.1%) with Italy’s FTSE MIB (+0.4%) outperforming in a continuation of the trend observed in the past few days, while Spain’s IBEX (-0.6%) underperforms, weighed on by financial names with the IBEX 35 banking sector down over 1%. In terms of stock specifics, Safran (+6.1%) shares flew to the top of the Stoxx 600 following an impressive upgrade in guidance. Elsewhere, Sodexo (-4.4%) shares took a hit following uninspiring earnings. Also of note: Wirecard (+1.2%) is to take Commerzbank’s (-0.7%) spot in the DAX 30.

Top European News

  • Commerzbank Is Ousted From Benchmark After 30 Years by a Fintech
  • Brexit Pollster Faces Scrutiny Over Secret Political Operations
  • Riksbank Says It’s Ready to Raise Rates in December or February
  • Buyout Firms Circle U.K. Assets as Brexit’s a ‘Building on Fire’

In FX markets, the DXY remained subdued and tested the 95.00 level to the downside as its major counterparts initially extended on recent gains with EUR/USD briefly fuelled after it tripped through stops at the prior day’s highs around 1.1640, while GBP/USD found a base at 1.2900 and held on to the majority of the advances spurred by the recent Brexit-friendly headlines. Elsewhere, JPY firmed against the greenback with the currency spurred by safe-haven and repatriation flows following the Hokkaido earthquake, while antipodeans initially traded higher in which AUD/USD and NZD/USD briefly reclaimed the 0.7200 and 0.6600 handles respectively, but then pared the moves with AUD pressured after more of Australia’s big 4 banks hiked mortgage rates and effectively reduced pressure on the RBA to start tightening policy.

Commodities were mixed overnight with WTI crude futures subdued following the prior day’s retreat to below the USD 69.00/bbl level and after the weekly API inventory report showed a smaller than expected draw in headline crude stockpiles. Elsewhere, gold initially benefitted from a weaker greenback but then met resistance at USD 1200/oz, while copper outperformed the commodity complex amid upside in Chinese commodities.

In the US it’s a fairly packed calendar with the August ADP employment change reading due along with final revisions to Q2 nonfarm productivity and unit labour costs, the latest weekly initial jobless claims print, final August services and composite PMIs, August ISM non-manufacturing, July factory orders and final July durable and capital goods orders data. Keep an eye on potential trade headlines given the deadline for the public comment period on the next round of tariffs.

US Event Calendar

  • 7:30am: Challenger Job Cuts YoY, prior -4.2%
  • 8:15am: ADP Employment Change, est. 200,000, prior 219,000
  • 8:30am: Nonfarm Productivity, est. 3.0%, prior 2.9%; Unit Labor Costs, est. -0.9%, prior -0.9%
  • 8:30am: Initial Jobless Claims, est. 212,500, prior 213,000; Continuing Claims, est. 1.72m, prior 1.71m
  • 9:45am: Markit US Services PMI, est. 55.2, prior 55.2; Markit US Composite PMI, prior 55
  • 10am: ISM Non-Manufacturing Index, est. 56.8, prior 55.7
  • 10am: Factory Orders, est. -0.6%, prior 0.7%; Factory Orders Ex Trans, prior 0.4%
  • 10am: Durable Goods Orders, est. -1.7%, prior -1.7%; Durables Ex Transportation, prior 0.2%
  • 10am: Cap Goods Orders Nondef Ex Air, prior 1.4%; Cap Goods Ship Nondef Ex Air, prior 0.9%

DB’s Jim Reid concludes the overnight wrap

Today marks 14 years at DB for me. I’ll be going through the employee handbook later to see what service landmarks I may be edging closer to. I think in the very very old days you got a silver clock for 25 years’ service. Only 11 years until I can
find a replacement for my iWatch. I’ll be interested to hear of your fascinating long service awards if you have any.

Talking of tech, we wondered in our week ahead whether yesterday’s Congressional hearing with the main tech companies on social media and foreign influences on elections would be a big event. In some ways it was as it finally started to drag US equities down into the risk off mood that it had recently been immune to. However, in broad terms US stocks still outperformed and outside tech most sectors edged higher. Europe saw significant underperformance. Meanwhile the EM sell off continued but moderated a bit and Italy continued to out-perform. Elsewhere the headlines turned more positive on Brexit and the Pound saw a big intra-day swing. So lots going on.

Expanding on these themes now. Firstly the NASDAQ tumbled to a -1.19% loss by the end of play last night which was the biggest fall for the index since July. The NYSE FANG index also fell -2.76% (most since July 30) while Facebook, Twitter and Alphabet – executives of which were testifying at Capitol Hill – were down -2.33%, -6.06% and -0.88% respectively. The S&P 500 was down a more sedate -0.28% with 285/505 stocks rising while the DOW actually clawed back to a small +0.09% gain by the close. It’s worth noting that DB’s US Equity Strategist Binky Chadha published an update on Tuesday with his views into year end. Binky still has a 3000 target for the S&P 500 (current 2888.60) but believes that there are a number of reasons to be cautious in the near-term with the window for a 3-5% pullback open, especially with September usually seasonally weak. Thereafter Binky is a lot more constructive from October into year end.

Meanwhile Europe again was the material underperformer yesterday with the STOXX 600 finishing -1.09% (-1.72% lower this week) and the DAX closing down -1.39% for a fifth consecutive daily loss. That’s the longest losing run since the late January/early February sell-off for the DAX. EM equities shed -1.77%, taking their losses since last Wednesday to -4.47% and -19.74% since their January peak. They did briefly step into bear market territory intra-day though. EM currencies stabilised a bit, trading up +0.16% and closing higher for only the second time over the last eight sessions. The Turkish Lira actually rallied +1.06% while the Argentine Peso gained +1.23%. Media outlets reported that IMF Managing Director Lagarde indicated to Argentine President Macri that expedited disbursements are likely. The South African Rand was down a much less eye watering (relative to recent moves) -0.51%.

Once again the big outlier in European markets was Italian assets. The FTSE MIB (-0.09%) was close to unchanged while 10y BTPs ended 8.3bps lower. That’s in the context of a +2.3bps move for 10y Bunds and flat day for Treasuries. Newsflow out of Italy has turned incrementally more positive with each passing day this week with PM Conte the latest to speak, saying yesterday morning that talks have been “very productive” and that the budget law will keep finances “in order”. Deputy Prime Minister Salvini, head of the League, said “we want to respect the commitments made, with the Italians remaining within the constraints imposed by others,” suggesting that he now plans to avoid confrontation by respecting previous government’s fiscal plans. We will see.

A quick look at Asia this morning where the risk-off tone has continued for the most part. The Nikkei (-0.28%), Hang Seng (-0.64%), Kospi (-0.02%) and ASX (-1.08%) are all in the red although the Shanghai Comp (+0.17%) is still holding onto gains. US equity futures are a little weaker while EM FX is broadly stable. As for newsflow, North and South Korea have agreed to hold a summit later this month (18th-20th) with Kim Jong Un quoted as saying that he is open to accepting “stronger” denuclearization measures, so long as the US acknowledges measures North Korea has already taken. Elsewhere JGBs are little changed after the BOJ’s Katoaka (a known QE hawk) said that the BoJ’s move to allow more flexibility in yield movements will delay achieving the 2% inflation target.

Staying with Asia, today marks the deadline for the end of the public comment period concerning another potential round of tariffs on $200bn of China imports. Our China Chief Economist Zhiwei Zhang believes that the impact on China will be manageable, as officials have space to ease policy. In their base case, they expect further trade confrontation, looser monetary policy, a weaker yuan, and a fiscal boost to infrastructure spending. There are risks to the upside, if a positive trade deal is reached, which would see higher rates, a strong yuan, and less infrastructure spending.

Moving on. The big story here in the UK yesterday was a Bloomberg article which hit the screens in the early afternoon suggesting that the UK and Germany had dropped key Brexit demands and were seeking a watered down version of a future agreement for now to push through the process and avoid a no deal. Indeed the story said that Germany “is ready to accept  a less detailed agreement on the UK’s future economic and trade ties with the EU” and the UK side “is also willing to settle for a vaguer statement of intent on the future relationship” including “postponing some decisions until after Brexit day”. The story went as far as to say that an initially planned document of up to 100 pages could now just be a tenth of that.

So signs of a classic fudge or at least scope for such with any big decisions pushed back to avoid the risk of a no-deal. As always with these stories there’s a question of source reliability but perhaps there’s also no smoke without fire and the more than 1% rally for Sterling from the lows on the back of it showed that the market took some notice. The Pound was actually a little off its intraday highs (closed +0.39% vs. USD) after Reuters reported a German government spokesman as saying that Germany’s position is unchanged. That didn’t seem like a great surprise though and crucially the comment didn’t explicitly refute the earlier story.

Elsewhere the economic data didn’t move the dial particularly for markets yesterday but for completeness the final August PMIs in Europe mostly confirmed the flash estimates. The Eurozone composite PMI printed at 54.5, up 0.1pp from the flash estimate, though readings in France and Germany were revised down 0.2pp and 0.1pp to 54.9 and 55.6pp, respectively. Readings in Spain and Italy came in at 53.0 and 51.7, with Italy’s slowdown in particular raising some concerns as it fell to a 22-month low. Away from Europe, the other standout PMI was in South Africa, where the index dipped further into contractionary territory to 47.2, a 29-month low and comes after data on Tuesday signalled a recession. In the US, the July trade deficit was broadly in line with expectations at -$50.1 billion. Notably, the bilateral deficit with China rose to a new all-time high, at -$36.8 billion.

As far as the day ahead is concerned, shortly after this hits your emails we’ll get July factory orders data out of Germany followed closely by the August construction PMI. In the US it’s a fairly packed calendar with the August ADP employment change reading due along with final revisions to Q2 nonfarm productivity and unit labour costs, the latest weekly initial jobless claims print, final August services and composite PMIs, August ISM non-manufacturing, July factory orders and final July durable and capital goods orders data. Meanwhile the ECB’s Lautenschlaeger is scheduled to speak in Vienna around lunchtime while the Fed’s Williams is due to speak in the afternoon. As mentioned earlier keep an eye on potential trade headlines given the deadline for the public comment period on the next round of tariffs.

 

 

 

3. ASIAN AFFAIRS

i) THURSDAY MORNING/ WEDNESDAY NIGHT: Shanghai closed DOWN 12.74 POINTS OR 0.47%   /Hang Sang CLOSED DOWN 260.03 POINTS OR 0.99%/   / The Nikkei closed DOWN 92.89 POINTS OR 0.41%/Australia’s all ordinaires CLOSED DOWN 1.13%  /Chinese yuan (ONSHORE) closed UP  at 6.8318 AS POBC HALTS ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER/Oil UP to 68.77 dollars per barrel for WTI and 77.50 for Brent. Stocks in Europe OPENED RED //.  ONSHORE YUAN CLOSED  UP AT 6.8318 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8423: HUGE DEVALUATION/PAST SEVERAL DAYS STOPS// TRADE TALKS NOT DOING TOO GOOD   : /ONSHORE YUAN TRADING  STRONGER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING  STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

3 a NORTH KOREA/USA

 

North Korea/South Korea/USA/China

Trump responds in kind to north Korea’s pledge of denuclearizaton

(courtesy zerohedge)

“Thank You Chairman Kim” – Trump Responds To North Korea’s Pledge Of Denuclearization

Late Wednesday evening North Korea announced it would pursue denuclearization by the end of President Trump’s first term, or by early 2021. The announcement came via South Korean President Moon Jae-in and his national security advisor Chung Eui-yong, who met with North Korea’s Kim Jong Un the day prior.

Kim has reportedly set down a timeline for denuclearization, the first step of which is a meeting summit between himself and the South Korean president in Pyongyang on Sept. 18-20, during which the two have pledged to discuss “practical measures” toward denuclearization.

This included a personal “good faith” message reportedly sent from Kim to President Trump via the South Korean envoy, to which the president has already responded early Thursday morning via TwitterKim Jong Un of North Korea proclaims “unwavering faith in President Trump.” Thank you to Chairman Kim. We will get it done together! – Trump stated.

Donald J. Trump

@realDonaldTrump

Kim Jong Un of North Korea proclaims “unwavering faith in President Trump.” Thank you to Chairman Kim. We will get it done together!

 

Kim conveyed the message to President Trump which reportedly reaffirms Kim’s trust in Trump regarding prior diplomatic openings, despite the White House canceling a visit to Pyongyang by the secretary of state last month citing lack of progress.

That message, South Korean national security advisor Chung told reporters after his visit, included that“He particularly emphasized that he has never said anything negative about President Trump.”

Crucially, the developments represent the first time Kim has ever suggested a timeline for dismantling his nuclear weapons program.

Previously the North has offered to give up its nukes only if extensive security guarantees were delivered by Washington, including the removal of all American troops currently stationed on the peninsula and the dismantling of what’s been referred to as its ‘nuclear umbrella’ of deterrence from South Korea and Japan.

The talks included an agreement to to open a liaison office ahead of the Moon-Kim summit to lay the ground work for “practical measures” to be agreed upon.

In his remarks on the planned timeline, Chung further said that Kim showed “frustration over the doubt raised by some parts of the international community about his willingness to denuclearize, and asked us to convey his message to the United States”.

“He said he would appreciate that such good faith is accepted with good faith,” Chung said. “He expressed his strong will to carry out more proactive measures toward denuclearization if action is taken in response to the North’s preemptive steps.” 

According to Chung, Kim desires to see the US take equally significant good faith moves such as the North’s recent reported dismantling of a nuclear test site as well as a missile engine facility, beyond mere recent pledged of suspending joint military exercises with the South.

While US officials have yet to comment on the developments, and the full contents of Kim’s message to Trump have yet to be revealed, North Korean media appeared to confirm the pledge, with the official KCNA news agency saying Kim told the South’s envoys that his “fixed stand” was to transform the Korean peninsula into “a cradle of peace without nuclear weapons, free from nuclear threat”, according to Reuters.

This could constitute the first important breakthrough since Kim and Trump’s historic summit in Singamore last June and a fresh sign that Kim is willing to follow through on work toward total denuclearization.

3 b JAPAN AFFAIRS

LATE TONIGHT:

He still have not finished with China, the EU and Canada and now Trump hints that he may initiate a trade war with Japan.  Now that battle will be interesting especially with Japan’s closed market

(courtesy zerohedge)

USDJPY Tumbles After Trump Hints At Japan Trade War

Next

USDJPY dived after hours (following a day of weakness) after reports from The Wall Street Journal  that President Trump told a columnist that he will take his trade fights to Japan next.

Yen strengthened as safe haven carry flows reverted home on the Trump headlines…

 

WSJ’s James Freeman wrote  about a phone call he received from the president, in which Trump “described his good relations with the Japanese leadership but then added:

“Of course that will end as soon as I tell them how much they have to pay.'”

Freeman said the phone call came after he appeared on Fox News Channel giving the president credit for the results of his tax and regulatory reforms. During the phone call, Freeman wrote, the president sounded “still very focused on eliminating trade deficits with America’s trading partners.”

 
END

3C CHINA

China vows to retaliate if the uSA imposes the next 200 billion dollars worth of tariffs

(courtesy zerohedge)

China Vows To Retaliate If US Imposes Additional Tariffs

China vowed that it will respond and take necessary countermeasures to protect its own economic interests as President Trump is expected to press on with a plan to impose tariffs on an extra $200 billion in Chinese imports as soon as this week.

“China will be forced to retaliate if the U.S. ignores resistance in public hearings and imposes additional tariffs”, said Gao Feng, a Ministry of Commerce spokesman, at a briefing on Thursday in Beijing.

The U.S. public-comment period on the additional tariffs is scheduled to conclude on Thursday, and President Trump is poised to impose previously announced tariffs on $200 billion worth of Chinese goods as early as Friday.

Gao Feng, Ministry of Commerce spokesman

“U.S. measures to pressure China are neither reasonable nor effective”, Gao said. China will closely monitor the impact from additional tariffs, and take strong measures to help both domestic and overseas companies operating in the country to overcome difficulties, according to the spokesman, who also argued for “equal, honest” talk.

“We have the confidence, the capabilities and the tools” to safeguard China’s economic interests, Gao said according to Global Times without further elaborating on the possible countermeasures, adding that any attempt to force China into concession will not work.

 

Although broad negotiations between the two countries have stalled, Gao said officials from both sides have been in contact since a meeting in Washington last month, in an effort to ease rising tensions.

Meanwhile, Trump is winning the trade war, with a survey of manufacturing sentiment earlier this week revealing the second highest number in history while the world’s second-largest economy is grappling with slowing growth, and has taken measures including stepping up infrastructure construction and channeling funds to smaller firms. At home, economists say the extra tariffs would cause China’s economy to slow more sharply next year if they are enacted.

Blaming the US for hurting both Chinese and US businesses, the spokesperson also noted that China will continue to assess tariff impact on companies in China and take measures to help them deal with potential damages.

 

end

4.EUROPEAN AFFAIRS

our resident expert on European affairs pounds the table that there is going to be a great realignment coming to Europe.  He discusses what is going on in Italy, Brexit, Germany, Hungary etc.

( zerohedge)

Luongo: The Great Realignment Is Coming To Europe

Authored by Tom Luongo,

A League Of Leagues Of Their Own In Europe

“There’s no crying in baseball!”
— A League of Their Own

The Great Realignment is coming to Europe next year.  All the writing is on the wall.

This summer saw German Chancellor Angela Merkel survive a leadership challenge by her coalition partner Horst Seehofer over her immigration policy.

She needs political wins to maintain her hold on power.  Standing firm against President Trump on the Nordstream 2 pipeline and having a cordial summit with Russian President Vladimir Putin is a good start.

Because most of Europe is tired of 1) Germany setting policy for the entire EU and 2) anti-Russian sanctions killing their trade.

But week-long protests in the Saxony town of Chemnitz over the stabbing of a local man are dogging her.  Germany’s polling numbers continue ebbing away from Merkel.

The more she is weakened the more emboldened her opposition becomes.

\

Cue Italian Deputy Prime Minister Matteo Salvini and Hungarian President Viktor Orban. They met to openly strategize over ending open migration into the EU.  On the surface Italy and Hungary seem at odds on this issue.

Italy wants its borders closed and its migrants distributed throughout Europe.

Hungary steadfastly refuses to take even one migrant.

This dichotomy is what the European media and politicians think will keep these two rising titans in conflict.

But, as Mike Shedlock pointed out recently at Townhall.com, these two men have bigger goals which they are in total agreement on — securing their borders to preserve their cultural and national identities.

That’s why Salvini is calling for “A League of Leagues” across Europe.  He will succeed.

This is the guy who successfully rebranded the secessionist Northern League into the MIGA party – Make Italy Great Again. 

Then he and Five Star Movement leader Luigi Di Maio navigated the Italian Swamp to form a government experts said couldn’t work, while simultaneously neutering establishment stalking horse Silvio Berlusconi.

Thanks to Salvini’s strategic genius Italian politics will never be the same again.  His League now polls around 30%, which bodes well for it in next year’s European Parliamentary Elections.

Because now his sights are MEGA – Make Europe Great Again.

The quisling European media pounce breathlessly whenever there is a perceived difference of opinion between Salvini and Di Maio, portraying the coalition as weak and tenuous.

Talks between Orban and Salvini were reported alongside Di Maio’s call for migrant burden sharing across the EU.  This is to sow discord where there is none.

The two are in lock-step in confronting Brussels over its IMF-backed austerity program.  They rightly see it as destroying Italy’s economy and its culture.  The program is no different than the one imposed on Greece and is destroying Argentina again, whose currency imploded last week.

They hope this wave of populism sweeping Europe is just a tantrum that eventually will end in tears.

But, there’s no crying in power politics.  

Neither Salvini nor Orban are weak men given to fits of doubt.  And their forming an alliance here is bigger than grandstanding on immigration policy.

With Merkel weak they will isolate French President Emmanuel Macron, make him their nemesis and remake the European Parliament after next year’s elections.

Because the real goal is to take control of the European Commission Presidency, ousting the odious Jean-Claude Juncker.

A “League of Leagues” would unite sovereigntist parties across Europe under one party in the European Parliament.  The European People’s Party rules alongside the Social Democrats in a German-style grand coalition that stands for nothing except more centralized control by EU technocrats.

Like Juncker.

Salvini and Orban want other the Visigrad countries as well as Austria to form the basis for this coalition.

Is it enough?  The 800 lb. Gorilla in this room is Alternative for Germany (AfD).  The official opposition party in the Bundestag, AfD will pick up seats in the European Parliament where they currently have just one.

They are the wild card in this gambit by Salvini and Orban.

As I’ve discussed in the past, AfD is in the process of “Crossing the Chasm” from minor party to major one.  The latest polls, now nearly a month old, have AfD polling between 16 and 18% nationally.

If AfD has a League-like surge from the mid-teens to 30% support, Merkel’s government will fall.

AfD will enter the EU parliament with a tailwind to see Salvini and Orban’s wish fulfilled.
This is why the protests in Chemnitz are important.  It’s why AfD’s rise in CSU-dominated Bavaria is so important.

Public frustration with immigrant violence could shift the German electorate between now and May’s elections that far as more and more Germans embrace local community pride.

Then there’s the Trump Factor.

The harder Donald Trump pushes EU leadership to actually lead at home the more they are exposed as weak fools.  Despite Juncker, Merkel and Macron talking a good game, European companies are abandoning their business with Iran over Trump pulling the U.S. out of the JCPOA.

The more they try to scuttle Brexit and reveal themselves as anti-democratic globalists, the worse the blowback on them is getting.

The new Spanish government willing to discuss greater Catalonian autonomy versus jailing everyone they can and cracking the skulls of old women on the streets of Barcelona.

Images like that are the face of Merkel’s EU.  So are the people in Chemnitz, dressed in black, wearing placards with the pictures of victims of migrant violence on them in silent vigil.

This isn’t a tantrum.  This is real emotion.  Real consequence.

Their tears are real and they are not for sale.

The markets always bet that those in power will remain in power.   The euro refuses to handicap these shifts in the political winds. No one in power wants it to fall too far too fast, or like Merkel, at all.

Because a strong euro to her is the main mechanism for keeping her opposition weak, blaming profligacy and sloth of Italians when it is the mis-pricing of Italian labor via the same over-valued euro that is the reason why Italy cannot grow. out of its debts.

By forming an alliance to reform the EU from within, Salvini and Orban counter that argument while taking the politically-viable path given the strong popular support the EU still has with many voters.

It gives Salvini the cudgel to bludgeon the EU over its intransigence on budget matters.  It allows him to say, “See, I don’t want to leave the euro, but Brussels won’t negotiate for a better Italy.” 

And given this guy’s track record so far, I wouldn’t bet against him making his case to angry European voters this winter.

And then it’ll be the globalists who will be crying.

*  *  *

To support more work like this and get access to exclusive commentary, stock picks and analysis tailored to your needs join my more than 160 Patrons on Patreon and see if I have what it takes to help you navigate a world going slowly mad.

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)RUSSIA

the Rouble tumbles to 69.63 roubles/per USA dollar as the markets are reacted to the UK poisoning.  Russian 10 yr yields rise to 9 per cent. Medvedev comments that sanctions are starting to hurt Russia

(courtesy zerohedge)

Ruble Tumbles On Medvedev Comments, UK

Allegations As Russian Yields Surge

The Russian ruble tumbled as much as 2%, sliding to 69.63, the lowest level against the dollar since March 2016 and its biggest drop since August 8 after Russia’s prime minister Dmitry Medvedev effectively admitted that US sanctions are starting to bite, and said that he is hopeful that the Bank of Russia becomes “active” as rates are high.

“It’s necessary to move from neutral to stimulating oversight of the credit sphere to create conditions for more confident economic growth,” Medvedev said at conference in Moscow, adding that “Interest rates remain quite high despite the successes in holding back inflation.” The prime minister also urged the central bank to take an “active position” to address the issue of elevated rates.

 

According to Rabobank’s Piotr Matys, “market participants are especially sensitive to any comments on monetary policy from prominent officials in current environment” adding that the USDRUB could approach 71.40 in coming weeks.

“It seems that the market has interpreted comments from PM Medvedev as political interference in the monetary policy. Such remarks may undermine credibility of the central bank and Governor Nabiullina, who is well respected by investors for acting decisively during the ruble crisis only a few years ago.”

“From the perspective of technical analysis comments from PM Medvedev may provide USD/RUB with sufficient momentum to break higher from the consolidation pattern that formed over the past few weeks. This bullish breakout would allow USD/RUB to extend gains towards the next important level at around 71.40 in the coming weeks”

Adding to the ruble’s pain was this statement from Bloomberg:

  • U.K. ALLIES BACK BRITISH ASSESSMENT ON RUSSIAN SPY POISONING

It came after Theresa May accused Russia of being being the Scripal poisoning, and presented alleged evidence that the two suspects in the case are in fact Russian secret service agents. With UK allies now seemingly on board the UK version of events, this heightens sanctions risk as tonight there is a UN session on the topic during which more sanctions could be announced.

As the ruble tumbled, bond yields rose, with the benchmark 10Y Russian bond rising above 9% for the first time since 2016.

 

Earlier, Russia’s Deputy Finance Minister Vladimir Kolychev told Bloomberg TV that Russia is ready to take the emergency step of buying its own ruble debt if a new wave of U.S. sanctions threatens to upend the market.

“In a very stressful scenario when we see the conditions of a market failure” both “the central bank and the government have the tools to intervene on the open market to cushion the adjustment period,”

A coordinated response would be a first since the Finance Ministry and the Bank of Russia teamed up early in 2015 to support the ruble at the height of the country’s currency crisis. As turmoil spreads across emerging markets, Russian assets have been battered by harsh U.S. sanctions in April and a “nuclear” option proposed in Congress that could target sovereign debt.

Prompted by fear about US sanctions, foreign holdings of Russian sovereign ruble debt have since declined to the lowest since 2016, and have handed investors a 12% loss since July, the fourth-worst performance among Russia’s peers tracked by Bloomberg.  The share of non-residents in Russia’s ruble-denominated debt has fallen to 26-27%, according to Kolychev. That’s down from a peak of 34.5% in March and 28 percent in July, central bank data show.

 

Still, despite the threat of the harshest U.S. measures to date, officials say Russia is prepared for the worst. At a forum sponsored by the ministry in Moscow on Thursday, Kolychev and colleagues from the central bank, Economy Ministry and a big state bank downplayed the risks from painful new measures, arguing that Russia’s in a strong position to weather any further instability, Bloomberg reported.

The U.S. Senate is set to debate new sanctions to punish the Kremlin for alleged election meddling, including a raft of measures dubbed “the bill from hell” that could bar Americans from buying new issues of Russian sovereign debt and ban the largest state banks from using dollars.

If U.S. actions forced foreign investors to sell Russian debt, Kolychev said in the interview that the first move would be to halt new issuance to keep pressure from building in the market.

On Wednesday, the Finance Ministry canceled a bond auction – the second time in recent weeks – amid rising borrowing costs. In another sign of increasing volatility, the governor of the Bank of Russia said policy makers at next week’s meeting will consider the first increase of the key interest rate since 2014 as inflationary risks grow due to the ruble’s weakness, which however appears to be at odds with what the Russian Prime Minister wants in a situation that is starting to looks similar to what is going on in Turkey.

 

 

6. GLOBAL ISSUES

7  OIL ISSUES

 

 

8 EMERGING MARKET ISSUES.

 

INDIA

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

Euro/USA 1.1628 UP .0006/ 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  IN THE RED EXCEPT PARIS

 

USA/JAPAN YEN 111.29   DOWN 0.160  (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 1.2926 UP   0.0011  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.3181  UP .0006(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 ROSE by 6 basis points, trading now ABOVE the important 1.08 level RISING to 1.1628; / Last night Shanghai composite CLOSED DOWN 12.74 POINTS OR 0.47%  /Hang Sang CLOSED DOWN 260.03 POINTS OR 0.99% /AUSTRALIA CLOSED DOWN  1.13% / EUROPEAN BOURSES ALL RED EXCEPT PARIS

 

 

The NIKKEI: this THURSDAY morning CLOSED DOWN 92.89 POINTS OR 0.41%

 

Trading from Europe and Asia

1/EUROPE OPENED ALL RED EXCEPT PARIS

 

 

 

2/ CHINESE BOURSES / :Hang Sang DOWN 260.03 POINTS OR 0.99%  /SHANGHAI CLOSED DOWN 12.74 POINTS OR  0.47%

Australia BOURSE CLOSED DOWN 1.13%

Nikkei (Japan) CLOSED DOWN 92.89 POINTS OR 0.41%

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1205.50

silver:$14.27

Early THURSDAY morning USA 10 year bond yield: 2.90% !!! 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 3.07 DOWN 1  IN BASIS POINTS from WEDNESDAY night. (POLICY FED ERROR)/

USA dollar index early THURSDAY morning: 95.08 DOWN 10  CENT(S) from WEDNESDAY’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: 1.88% UP 0    in basis point(s) yield from WEDNESDAY/

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

SPANISH 10 YR BOND YIELD: 1.45% UP 0  IN basis point yield from WEDNESDAY/

ITALIAN 10 YR BOND YIELD: 3.06 UP 9   POINTS in basis point yield from WEDNESDAY/

 

 

the Italian 10 yr bond yield is trading 161 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 1.1620  DOWN .0014(Euro DOWN 14 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 110.90 DOWN 0.550 Yen UP 55 basis points/

Great Britain/USA 1.2934 UP .0018( POUND UP 18 BASIS POINTS)

USA/Canada 1.3216  Canadian dollar DOWN 40  Basis points AS OIL FELL TO $67.59

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This afternoon, the Euro was FELL BY 14 BASIS POINTS  to trade at 1.1620

The Yen ROSE to 110.90 for a GAIN of 55 Basis points as NIRP is STILL a big failure for the Japanese central bank/HELICOPTER MONEY IS NOW DELAYED/BANK OF JAPAN NOW WORRIED AS AS THEY ARE RUNNING OUT OF BONDS TO BUY AS BOND YIELDS RISE

The POUND GAINED 18 basis points, trading at 1.2934/

The Canadian dollar LOST 40 basis points to 1.3216/ WITH WTI OIL FALLING TO 67.59

The USA/Yuan,CNY closed DOWN AT 6.8355  ON SHORE  (YUAN WON)

THE USA/YUAN OFFSHORE:  6.8462 (  YUAN DOWN)

TURKISH LIRA:  6.5925

the 10 yr Japanese bond yield closed at +.11%   DOWN 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: 3.06 DOWN 1  in basis points on the day /

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

Your closing USA dollar index, 95.12 DOWN 6 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  64.32 POINTS OR 0.87%

German Dax : CLOSED DOWN 85.21 POINTS  OR 0.71%
Paris Cac CLOSED DOWN 16.38 POINTS OR 0.21%
Spain IBEX CLOSED DOWN 86.70 POINTS OR 0.93%

Italian MIB: CLOSED DOWN:  54.56 POINTS OR 0.27%/

 

The Dow closed  UP  20.88 POINTS OR 0.08%

NASDAQ closed DOWN 72.44 points or 0.91% 4.00 PM EST 

 

WTI Oil price; 67.59  1:00 pm;

Brent Oil: 75.89 1:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    69.33/ THE CROSS HIGHER BY 1.11 ROUBLES/DOLLAR (ROUBLE LOWER BY 111 BASIS PTS)

USA DOLLAR VS TURKISH LIRA:  6.5925 PER ONE USA DOLLAR.

TODAY THE GERMAN YIELD RISES +.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:$67.96

BRENT: $76.67

USA 10 YR BOND YIELD: 2.87%

USA 30 YR BOND YIELD: 3.05%/

EURO/USA DOLLAR CROSS: 1.1626 DOWN .0009 ( DOWN 9 BASIS POINTS)

USA/JAPANESE YEN:110.68 DOWN 0.771 (YEN UP 77 BASIS POINT/ .

USA DOLLAR INDEX: 95.05 DOWN 14 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.2932 UP 18 POINTS FROM YESTERDAY

the Turkish lira close: 6.5838

the Russian rouble:  69.24 DOWN 1.03 roubles against the uSA dollar.(DOWN 113 BASIS POINTS)

 

Canadian dollar: 1.3146 UP 28 BASIS pts

USA/CHINESE YUAN (CNY) : 6.8355  (ONSHORE)

USA/CHINESE YUAN(CNH):  6.8439 (OFFSHORE)

German 10 yr bond yield at 5 pm: ,0.35%


VOLATILITY INDEX:  14.59  CLOSED UP 0.68

LIBOR 3 MONTH DURATION: 2.322%  .LIBOR  RATES ARE RISING

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

TRADING IN GRAPH FORM FOR THE DAY

Stocks Sink As FANG Suffers Longest Losing Streak In 7

Months

“Do you want to play the game?”

ame?”

 

 

China Stocks slumped once again

 

European stocks faded with DAX and CAC underperforming on the week…

 

Nasdaq was the laggard in the US for the 2nd day in a row… with Shanghai Comp back below 2700…(ince again the trend stopped on a dime at the European close)…. The Dow managed to close green (thanks to BA)

 

US Futures show selling pressure on Nasdaq at each of this week’s opens…

 

Semis were really ugly today…thanks to KLA Tencor

 

FANG Stocks down for the 4th day in a row – the longest losing streak since February…

 

NFLX managed gains on the day but FB, AMZN, and GOOGL were not pretty (and AAPL was down)…

 

Bonds and stocks have been selling off together this week…

 

Treasury yields dropped on the day, despite the big Cigna bond issue

 

But 10Y remains higher on the week ahead of tomorrow’s payrolls chaos…

 

The Dollar limped lower for the second day in a row erasing the week’s gains…

 

EM FX was mixed today, ending the day very slightly weaker…

 

While the Argentine Peso surged today (along with the Ruble and Rand), it was the Russia Ruble that suffered most…(weakest since March 2016)

 

Cryptos legged down once again early on today, with Ethereum now down over 20% since Friday’s close…

 

 

 

Crude ended the day lower , silver was flat but copper and gold managed modest gains…

 

WTI bounced back to $68 after its post-DOE inventories tumble…

 

Gold futures managed to hold above $1200 once again…

 

Finally, VIX continues to decouple higher – ahead of payrolls – and stocks are slowly catching down…

end

 

market trading/this morning

Tech Wreck Continues, FANG Hits 3-Week Lows, EM Stocks Enter Bear Market

Contagion continues…

The tech stock rout, which accelerated during yesterday’s Congressional hearing on social network bias, accelerated on Thursday, this time led by a selloff in chipmakers dragging the Nasdaq Composite to a two-week low.

 

The biggest loser was KLA-Tencor, which sank 7.8%, pulling the semiconductor space lower by 1.7%, while semicap equipment peers Lam Research, Applied Materials, Micron and AMD also slumped. Casino shares were also under pressure with Las Vegas Sands down 2.8 percent. The threat of fresh tariffs by the Trump administration on Chinese goods loomed over equity markets.

 

After some early gains, the S&P 500 also slumped further away from its recent all time highs and further below 2,900 as investors were spooked by the imminent announcement of some $200BN in in new Chinese tariffs and ahead of Friday’s jobs report.

After initially falling, the dollar rebounded as emerging market stocks stumbled into bear market territory after enjoying an early morning respite from the selling. Meanwhile, Treasuries edged higher after a disappointing ADP report.

“There are many risks out there,” Chris Rupkey, chief financial economist at MUFG Union Bank in New York, wrote in an email to clients.

“Emerging markets causing market chaos (forget US stocks are at all time highs and could care less), rising trade tensions threatening long-established world trade patterns and disrupting company supply-chains.”

EM Equities have slumped into a bear market…

 

Predictably, attention remains on emerging markets which hold the key to sentiment, with recent losses fueling fears that turmoil could spill into developed markets. While focus remains on efforts from Argentina to Indonesia to sustain confidence, the potential for President Donald Trump to announce another round of tariff hikes on Chinese imports as soon as Thursday also looms large.

Mega-Tech stocks are under pressure once again as FANG slumps to 3-Week lows…

 

 

With all members slumping..

 

Treasuries are bid and the dollar is rising.

Market data

Hard data, USA factory orders tumble in July as war spending slumps

(courtesy zerohedge)

US Factory Orders Tumble In July As War-Spending Slumps

Despite all the exuberance at survey-based data and record-er highs in US stocks, US Factory Orders tumbled in July (down 0.8% MoM – it’s biggest drop since January).

 

 

The driver of the slump was a plunge in defense aircraft and parts spending…

 

Welcome to the AmericanMilitary-Industrial economy!!

END
USA economic/general stories
Oh No this cannot be so…Wells Fargo, such fine and upstanding citizens have been found to have widespread document altering.
(courtesy zerohedge)

Wells Tumbles As DOJ Launches New Probe After Review Found Widespread “Document Altering”

Another day, another scandal involving Warren Buffett’s favorite bank.

 

According to the WSJ, the DOJ is now probing whether employees committed fraud in Wells Fargo’s wholesale banking unit as a after revelations that employees improperly altered customer information. This follows a prior WSJ report that some employees in the unit added information on customer documents, such as Social Security numbers and dates of birth, without their consent.

Meanwhile, the bank’s own review discovered in recent months that in its wholesale banking group the problems were more widespread than previously thought: problems with altered documents initially centered in the part of the wholesale banking business called the business banking group, which focuses on companies with annual sales of $5 million to $20 million. Wells Fargo has found similar problems in its commercial banking division, which primarily serves middle-market companies, and its corporate trust services group, which helps with the administration of securities issued by companies and governments, one of the people said.

According to the Journal, employees altered the customer documents as Wells Fargo was rushing to meet a deadline to comply with a 2015 consent order from the Office of the Comptroller of the Currency.

The regulator had ordered the bank to beef up its anti-money-laundering controls, including its processes for ensuring that there are proper identification documents and that the bank has the ability to see client activities across a common database.

When the OCC issued the consent order, Wells Fargo had more than 100,000 customer accounts it needed to verify, the Journal previously reported. Wells Fargo in May formally asked the OCC for an extension beyond the initial June 30, 2018, deadline.

As a result, over the past year, the bank has been reaching out to thousands of clients requesting updated documentation on information such as relevant client addresses or dates of birth. Banks must have certain information, known as “know your customer” regulatory requirements, in order to keep banking their clients.

In other words, there was fraud everywhere, and then there was fraud to cover up the fraud..

As the WSJ adds, the Justice Department is trying to learn if there is a pattern of unethical and potentially fraudulent employee behavior tied to management pressure. The employees in the wholesale banking unit, the side of the bank that deals with corporate customers, mishandled the documents last year and earlier this year.

The latest probe adds to the problems at Wells Fargo, whose reputation has been crushed since a sales scandal in its consumer bank imploded two years ago.

It also underscores how bad behavior has emerged throughout the bank and has continued even after the 2016 blow-up over sales practices. The bank’s problems have cascaded since then, with issues related to lofty sales goals and improper customer charges emerging across all of its major business units, prompting a range of other federal and state investigations.

The news of the latest probe sent Wells stock tumbling as investors wonder just how “low can Fargo go.”

end

Another good indicator that the USA economy turned on a dime in July.  Challenger,Christmas Gray announces another 38,472 job cuts in August

(courtesy ChallengerChristmas Gray)

2018 August Job Cut Report: Companies Announce 38,472 Cuts

The pace of downsizing in August rose to the third-highest total for the year, as U.S.-based employers announced plans to cut 38,472 jobs, according to a report released Thursday by global outplacement and executive coaching firm Challenger, Gray & Christmas, Inc.

August’s job cut plans are the highest since March, when 60,357 cuts were recorded, and the third highest behind January’s total of 44,653. It is the third time this year that job cuts were higher than the corresponding month last year.

Last month’s total rose 41.8 percent from the 27,122 cuts announced in July and 13.7 percent from the same month last year, when 33,824 cuts were announced.

“August job cut announcements seem to indicate the summer lull is over. Companies are assessing global market conditions and adjusting staffing levels accordingly,” said John Challenger, Chief Executive Officer of Challenger, Gray & Christmas, Inc.

So far this year, employers have announced 310,773 cuts, 7.5 percent higher than the 289,132 cuts announced through this point last year.

Last month saw an increase in companies attributing job cuts to tariffs, specifically tariffs on imported steel, which are ongoing, and newsprint, which have recently been overturned. Companies announced 521 job cuts due to these tariffs in August, for a total of 591 so far this year. Challenger also tracked 613 cuts due to lower demand for coal.

While tariffs have been blamed for cuts, U.S. steel makers announced plans to hire 359 workers in August.

Industrial Goods manufacturers lead in job cut plans in August with 10,188, bringing the year-to-date total to 18,464. Half of these cuts were announced by Johnson Controls, which plans to cut 9,200 jobs by 2020 while also adding 900 sales jobs by the end of the year.

Consumer Products manufacturers announced the second- highest number of job cuts in August with 4,716, bringing the year-to-date total to 26,926. This is 184.5 percent higher than the 9,465 cuts in this sector announced through August 2017.

“Manufacturers are grappling with rising costs, weak demand, and competition on a global scale. We may see additional job cuts as the full ramifications of imposed tariffs are felt,” said Challenger.

Retailers follow with 3,715 cuts announced in August. Retailers lead all industries in job cuts this year with 79,478.

Hiring announcements increased in August to 17,274, the highest total since February.

“Tech companies announced plans to hire over 7,000 workers in August. Demand for people with coding, web and software development, and network security skills and experience are in high demand right now,” said Challenger.

-END-

 

SWAMP STORIES

Trump on the issue of a possible government shutdown

(courtesy zerohedge)

Trump On Possible Government Shutdown: “If It Happens, It Happens”

President Trump indicated on Wednesday that he would accept a government shutdown in order to press for funding for building more of the wall on the U.S.-Mexico border. “If it happens, it happens,” he said about the potential for a government shutdown when the current funding expires at the end of September.

 

Speaking to reporters ahead of a meeting with the Republican House and Senate leadership, Trump said that “if it’s about border security, I’m willing to do anything” even as lawmakers warn that a shutdown ahead of the November midterm elections would be politically perilous. “We have to protect our borders,” Trump added.

Trump has been pushing for a threefold increase in border wall funds for fiscal 2019, although some Republicans who have been noncommittal or skeptical about the increase, have taken a more favorable stance as the Sept. 30 deadline to fund the government approaches.

Earlier on Wednesday we reported that Trump is once again wielding threats of a “good” government shutdown as a cudgel to batter intransigent Democrats and Republicans who are standing in the way of his plans to build his promised wall along the US’s southern border.

Republicans

This isn’t the first time Trump has threatened a shutdown – and at this point in the game, with the outrageous allegation from Bob Woodward’s tell-all vying for dominance in the news cycle and Trump’s trade war contributing to the stress in emerging markets – the president might view a shutdown fight as an advantageous distraction ahead of the Nov. 6 midterm vote. But there’s also reason to believe the president could be sincere about this threat. After all, even his Republican allies in Congress have done seemingly everything in their power to avoid the issue of funding for the border wall.

Republican leaders have been eager to persuade the president to delay a showdown over border-wall funding until later in the year. Earlier Wednesday, House Speaker Paul Ryan indicated that the president understood a government shutdown wouldn’t be effective. As the WSJ notes, Congressional Republicans have worked to complete funding bills for most government departments by the time the current funding expires at end of this month, but would leave the Department of Homeland Security’s funding for later in the year.

Congress is also expected to pass a stopgap measure funding DHS and some other agencies at current funding levels until after the midterm elections.

However, given Trump’s unpredictability GOP leaders have been preparing for the worst-case scenario: That Trump puts his foot down and insists on the shutdown. If he does, lawmakers will have little recourse – unless they could muster the votes to override a presidential veto.

Finally, as this morning, we note that the spread between pre- and post-fiscal-year-end Treasury Bill yields is once again spiking, signaling the market is starting to price in some anxiety across that crucial dateline.

end

Trump orders the NY Times to reveal the Op-ed source.  The pundits believe it is either Pence or Sessions

(courtesy zerohedge)

 

Trump Orders NYTimes To Reveal Op-Ed Source For “National Security” Purposes

Time to get the lawyers involved…

 

 

 

Trump begins by questioning whether a source actually exists: “Does the so-called “Senior Administration Official” really exist, or is it just the Failing New York Times with another phony source?”

And then comes over the top by playing the “Nation Security” threat card, demanding they hand over the source:“If the GUTLESS anonymous person does indeed exist, the Times must, for National Security purposes, turn him/her over to government at once!”

Donald J. Trump

@realDonaldTrump

Does the so-called “Senior Administration Official” really exist, or is it just the Failing New York Times with another phony source? If the GUTLESS anonymous person does indeed exist, the Times must, for National Security purposes, turn him/her over to government at once!

We can only imagine the level of liberal media mania this will cause.

 

While we are waiting for NYTimes’ response, CNN has put together the Top 12 potential sources of the op-ed  based on what we know about the various factions, likes, dislikes, motivations and ambitions within the Trump administration. These are in no particular order.

Don McGahn

We know the White House counsel is a short-timer — planning to leave in the fall. We also know that McGahn has clashed with Trump repeatedly in the past — refusing Trump’s order to fire special counsel Robert Mueller. And McGahn has already shown a willingness to look out for the broader public good, sitting down for more than 30 hours with special counsel Robert Mueller’s team to aid their investigation into Russian interference in the 2016 election.

Dan Coats

The Director of National Intelligence is very much a part of the long-term Washington establishment, having spent not one but two stints in the nation’s capital as a senator from Indiana. Coats has also shown a tendency to veer from the Trump songbook. Informed of Trump’s plans to invite Russian president Vladimir Putin for a summit in the United States this fall, Coats said “That is going to be special” — a line that drew the ire of the President.

Kellyanne Conway

I think it is uniquely possible that someone willing to pen an op-ed this bold and critical of Trump — and in the paper he hate-loves more than any other — might take significant measures to cover their tracks. And Conway is someone who has survived for a very long time in the political game. And not by being dumb or not understanding which way the wind blows. Plus, there is the X-factor of her husband — George — whose Twitter feed regularly trolls Trump.

John Kelly

The chief of staff has clashed repeatedly with the President and seems to be on borrowed time. Kelly sees his time in the job as serving his country in the only way left to him. Might he view exposing Trump in this way as a last way to be of service?

Jeff Sessions

Sessions sticks out as a possibility for a simple reason: He’s got motive. No one has been more publicly maligned by Trump than his attorney general. Trump has repeatedly urged Sessions to use the Justice Department for his own pet political concerns. And this week, Sessions found out that Trump has referred to him as “mentally retarded” and mocked his southern accent, according to a new book by Washington Post reporter Bob Woodward. Sessions is also someone who spent two decades in the Senate prior to being named attorney general by Trump after the 2016 election.

James Mattis

The defense secretary has been Trump’s favorite Cabinet member. But the quotes attributed to Mattis in Woodward’s book are VERY rough on Trump, though Mattis quickly denied that he ever said them. And if anyone has less to lose than Mattis — he is a decorated military man serving his country again — it’s hard to figure out who that would be. Plus, Mattis is an ally of John Kelly (see above) and Rex Tillerson, the former secretary of state that Trump ran out on a rail.

Fiona Hill

Hill, a Russian expert who joined the Trump administration from the Brookings Institute, a DC think tank, might have reason to so publicly clash with Trump. She is far more skeptical about Russia’s motives than Trump — and was notably left out when Trump and Putin huddled on the sides of the G20 meeting in Germany in 2017. She was a close adviser to national security adviser H.R. McMaster, who was removed from the White House. And, she was also reportedly mistaken for a clerk by Trump in one of her earliest meetings with him on Russia.

Mike Pence

The vice president is all smiles, nods and quiet, deferential loyalty in public. Which of course means that he has the perfect cover to write something like this in The New York Times. Pence is also ambitious — and there’s no question he wants to be president. But would taking such a risk as writing this scathing op-ed be a better path to the White House than just waiting Trump out?

Nikki Haley

The United Nations ambassador is, like Pence, one of Trump’s favorites. She is also, however, someone deeply engaged on the world stage and a voice of concern when it comes to how the President views Russia and Putin. Haley, again like Pence, is ambitious and has her eye on national office. Would this service that goal?

Javanka

The combination of Jared Kushner and Ivanka Trump — Javanka! — writing this op-ed would be right out of a soap opera. But that is sort of a perfect way to describe the Trump administration, right? Ivanka Trump said she would work to make her voice heard to her father, but there’s little evidence he’s listened much to her or her husband. Might this be a bit of revenge?

Melania Trump

To be clear, I don’t think the first lady did this. But her willingness to send messages when she is unhappy with her husband or his administration is unmistakable. (“I really don’t care. Do U?”) And, if you believe this administration and Trump are governed by reality shows rules, then Melania writing the op-ed is the most reality TV thing EVER.

END

end

Sean Hannity slams the “swamp sewer creature” behind the anonymous New York Times piece.  Whoever wrote it, (if it is real) is certainly a betrayal to Trump.  It is interesting that Mike Pence  used the term “lodestar” in previous speeches 8 times.

(courtesy zero hedge)

“A Stunning Betrayal”: Hannity Slams “Swamp Sewer Creature” Behind Anonymous NYT “Hit Piece”

Shortly after President Trump lashed out Wednesday night at the “GUTLESS anonymous person” who penned an intensely critical New York Times op-ed describing the “resistance” inside the administration, Fox News host Sean Hannity took to the airwaves for his nightly prime-time show, where he and guest Newt Gingrich took turns slamming the “extraordinary statement of arrogance” as a piece of “deep state” propaganda, and its author as a traitorous, arrogant individual hell-bent on undermining not only the administration, but the American democratic system.

Hannity

Gingrich accused the author of intentionally sabotaging the US government while comparing the anonymous author to disgraced FBI agent Peter Strzok, who was stripped of his security clearance and let go from the FBI for spearheading an clandestine operation from within the bureau to stop Trump from serving as president. Hannity slammed the piece as a “stunning betrayal” while highlighting Trump’s myriad accomplishments during his brief time in office (breakthroughs involving North Korea, the economy and tax reform among them) as evidence against the author’s claim that Trump is heedlessly amoral. The author of the op-ed is clearly just another “swamp sewer creature” who “can’t stand the new sheriff in town,” Hannity said. 

“Whoever this anonymous super-patriot is who wrote the anti-Trump hit piece in the New York Times, I would argue dangerously published, is nothing more than a swamp sewer creature who can’t stand that there is a new sheriff in town,” Hannity said on his show.

Whoever wrote the op-ed clearly believed that they had the “moral authority” to take on the president and defy the popular will of the American people, Gingrich said. By writing the piece, the anonymous official effectively decided to take undermine “the entire American system.”

“They are taking on themselves the moral authority to break to law, to repudiate the commander in chief, to basically repudiate our whole constitutional process and they are now going to decide what they think is right… when you think about it is amazing statement of their willingness to make themselves bigger than the entire American system. And it tells you what people mean when they talk about the swamp and they talk about the deep state,” Gingrich said.

“Here’s a person emerging anonymously in The New York Times to say in essence, ‘Yes, I am the deep state” and I am going to do everything I can to make sure that President Trump cannot perform the job that the American people gave him,'” he added. “That’s an extraordinary statement of arrogance from the part of some person who didn’t win the election, didn’t run for office and has never told us what they believe in.”

Hannity added that he had “never seen a president that worked so hard to stick to the promises he’s made”, adding that the piece’s author clearly “has an agenda, and the agenda is to make themselves look good and hurt the president” and that the author had a genuine “contempt” for the American people.

The full segment below:

 

end

Trump must declassify the FISA documents and the Bruce Ohr hand written notes and this will expose the crooks

(courtesy zerohedge)

 

Revenge: Trump Threatens “Deep State” With Declassification “To Find Additional Corruption” As GOP Allies Call For Release

One day after the New York Times published an anonymous op-ed alleging that a cabal of “resisters” within the White House is actively subverting the Commander in Chief, President Trump threatened to declassify documents which might uncover “Additional Corruption,” right as his GOP allies on Capitol Hill are calling on him to use his Presidential authority to declassify and release reams documents related to the DOJ’s Russia probe.

 

The Deep State and the Left, and their vehicle, the Fake News Media, are going Crazy – & they don’t know what to do,” Trump tweeted Thursday morning, adding: “The Economy is booming like never before, Jobs are at Historic Highs, soon TWO Supreme Court Justices & maybe Declassification to find Additional Corruption. Wow!”

Donald J. Trump

@realDonaldTrump

The Deep State and the Left, and their vehicle, the Fake News Media, are going Crazy – & they don’t know what to do. The Economy is booming like never before, Jobs are at Historic Highs, soon TWO Supreme Court Justices & maybe Declassification to find Additional Corruption. Wow!

In particular, Republican Reps. Mark Meadows, Jim Jordan, Matt Gaetz and Lee Zeldin have asked Trump to declassify more of the heavily redacted FISA surveillance warrant on former Trump campaign aide Carter Page in late 2016. They also want Trump to release all of the official notes filed by twice-demoted DOJ official Bruce Ohr, whose cozy relationship with former UK spy Christopher Steele has come under intense scrutiny in recent weeks.

Lee Zeldin

@RepLeeZeldin

At 12:45PM, I will be joined by @Jim_Jordan @RepMarkMeadows @RepMattGaetz & others to call on @realDonaldTrump to declassify & release the Page FISA apps, Ohr’s 302s & more. The FISA court was misled & the process abused to spy on Americans. We have ZERO tolerance for any of it!

The GOP legislators are also seeking the declassification of “other relevant documents” according to Zeldin’s office.

The GOP lawmakers intend to formally announced [sic] their push on Thursday at a press conference. Trump has long backed his allies’ complaints that the Justice Department has withheld sensitive documents that might expose bias behind the Russia probe, which was launched in July 2016 by the FBI. In January, he agreed to declassify a memo crafted by GOP staff of the House Intelligence Committee that officially confirmed, for the first time, the existence of the Page surveillance warrant. That document had been reported in media but not formally acknowledged by the FBI. –Politico

Wednesday’s anonymous Op-Ed, which the Times claims was written by a “senior official in the Trump administration,” has drawn harsh rebuke from both sides of the aisle and appears to be backfiring spectacularly. While Trump and his supporters have naturally rejected the Op-Ed as everything from “fake news” written by a “coward” (and possibly an outright fabrication by the Times), the editorial has received surprising pushback from notable left-of-center figures.

As we noted Wednesday night, Jessica Roy of the Los Angeles Timesresponded to the NYT Op-Ed within hours, writing: “No, anonymous Trump official, you’re not ‘part of the resistance.’ You’re a coward” for not going far enough to stop Trump and in fact enabling him.

If they really believe there’s a need to subvert the president to protect the country, they should be getting this person out of the White House. But they’re too cowardly and afraid of the possible implications. They hand-wave the notion thusly:

“Given the instability many witnessed, there were early whispers within the cabinet of invoking the 25th Amendment, which would start a complex process for removing the president. But no one wanted to precipitate a constitutional crisis.”

How is it that utilizing the 25th Amendment of the Constitution would cause a crisis, but admitting to subverting a democratically elected leader wouldn’t?

If you’re reading this, senior White House official, know this: You are not resisting Donald Trump. You are enabling him for your own benefit. That doesn’t make you an unsung hero. It makes you a coward. –LA Times

Meanwhile, Glenn Greenwald – the Pulitzer Prize Winning co-founder of The Intercept, also called the author of the op-ed a “coward” whose ideological issues “voters didn’t ratify.” 

Greenwald continues; “The irony in the op-ed from the NYT’s anonymous WH coward is glaring and massive: s/he accuses Trump of being “anti-democratic” while boasting of membership in an unelected cabal that covertly imposes their own ideology with zero democratic accountability, mandate or transparency.

Glenn Greenwald

@ggreenwald

Many of the complaints from the NYT’s anonymous WH coward – not all, but many – are ideological: that Trump deviates from GOP orthodoxy, an ideology he didn’t campaign on & that voters didn’t ratify. Trump may be a threat but so is this covert coup to impose these policies. pic.twitter.com/4Qf54JJHN9

View image on Twitter

Glenn Greenwald

@ggreenwald

The irony in the op-ed from the NYT’s anonymous WH coward is glaring and massive: s/he accuses Trump of being “anti-democratic” while boasting of membership in an unelected cabal that covertly imposes their own ideology with zero democratic accountability, mandate or transparency

So with the left, right and center all calling the anonymous op-ed a coward, and President Trump suggesting everything from a pure fabrication to the “Deep State” using their “Fake News Media” vehicle against him, one has to wonder exactly what’s stopping him from releasing the very documents which would expose more of what many are convinced has been nothing more than a charade.

 

 

end

A grand jury as convened in Washington looking into the lying by Andrew mcCabe.

(courtesy zerohedge)

 

Secret Grand Jury Proceedings Underway Against Andrew McCabe; Witnesses Summoned

Federal prosecutors have been using a grand jury over the last several months to investigate former FBI Deputy Director Andrew McCabe, reports the Washington Post, citing two people familiar with the matter.

 

What’s more, the grand jury has summoned at least two witnesses, and the case is ongoing according to WaPo‘s sources.

The presence of the grand jury shows prosecutors are treating the matter seriously, locking in the accounts of witnesses who might later have to testify at a trial. But such panels are sometimes used only as investigative tools, and it remains unclear if McCabe will ultimately be charged. –Washington Post

McCabe was fired on March 16 after Justice Department Inspector General Michael Horowitz issued a criminal referral following a months-long probe, which found that McCabe lied four times, including twice under oath, about authorizing a self-serving leak to the press. Horowitz found that McCabe “had made an unauthorized disclosure to the news media and lacked candor – including under oath – on multiple occasions.

Specifically, McCabe was fired for lying about authorizing an F.B.I. spokesman and attorney to tell Devlin Barrett of the Wall St. Journal – just days before the 2016 election, that the FBI had not put the brakes on a separate investigation into the Clinton Foundation, at a time in which McCabe was coming under fire for his wife taking a $467,500 campaign contribution from Clinton proxy pal, Terry McAuliffe. 

In order to deal with his legal woes, McCabe set up a GoFundMe “legal defense fund” which stopped accepting donations, after support for the fired bureaucrat took in over half a million dollars – roughly $100,000 more than his wife’s campaign took from McAuliffe as McCabe’s office was investigating Clinton and her infamous charities.

 

Who’s lying?

In May, federal investigators from the D.C. U.S. Attorney’s office interviewed former FBI director James Comey as part of an ongoing probe into whether McCabe broke the law when he lied to federal agents, reports the Washington Post.

Investigators from the D.C. U.S. Attorney’s Office recently interviewed former FBI director James B. Comey as part of a probe into whether his deputy, Andrew McCabe, broke the law by lying to federal agents — an indication the office is seriously considering whether McCabe should be charged with a crime, a person familiar with the matter said. –Washington Post

Of particular interest is that Comey and McCabe have given conflicting reports over the events leading up to McCabe’s firing, with Comey calling his former deputy a liarin an April appearance on The View, where he claimed to have actually “ordered the [IG] report” which found McCabe guilty.

Comey was asked by host Megan McCain how he thought the public was supposed to have “confidence” in the FBI amid revelations that McCabe lied about the leak.

It’s not okay. The McCabe case illustrates what an organization committed to the truth looks like,” Comey said. “I ordered that investigation.

Comey then appeared to try and frame McCabe as a “good person” despite all the lying.

“Good people lie. I think I’m a good person, where I have lied,” Comey said. “I still believe Andrew McCabe is a good person but the inspector general found he lied,” noting that there are “severe consequences” within the DOJ for doing so.

 
END

WE WILL SEE YOU ON FRIDAY NIGHT.

 

 

HARVEY

 

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