SEPT 7/GOLD DOWN $3.75 TO $1195.20/SILVER DOWN ANOTHER 2 CENTS TO $14.14/ SLV ADDS A HUGE 3.008 MILLION OZ INTO INVENTORY DESPITE SILVER’S FALL TODAY AND THROUGHOUT THE WEEK/SILVER DEMAND IS SO HIGH THAT THE INVESTORS CLEAN OUT ALL OF THE MINT’S INVENTORY/CHINA’S DEMAND FOR THIS YEAR WILL NOW EXCEED 2200 TONNES/ANOTHER PHONY JOBS REPORT: READ DAVE KRANZLER FOR THE TRUTH/TRUMP AFTER IMPOSING 200 BILLION IN TARIFFS, WANTS TO PUT ON ANOTHER 267 BILLION DOLLARS WORTH AND THAT SENT THE DOW DOWN, GOLD DOWN AND THE DOLLAR HIGHER/IRAN IN BIG TROUBLE IN THEIR ECONOMY AS THE RIYAL EXCEEDS 150,000 RIYALS PER DOLLAR/MORE SWAMP STORIES FOR YOU TONIGHT

FINALIZED DRAFT

 

GOLD: $1195.20 DOWN  $3.75 (COMEX TO COMEX CLOSINGS)

Silver:   $14.14   DOWN 2 CENTS (COMEX TO COMEX CLOSING)

 

Closing access prices:

Gold $1196.60

silver: $14.16

 

 

 

 

H

 

 

For comex gold:

AUGUST/

 

And now Sept:

NUMBER OF NOTICES FILED TODAY FOR SEPT CONTRACT:  63 NOTICE(S) FOR 6300  oz

Total number of notices filed so far for Sept:  498 for 49,800 (1.5489 tonnes)

 

 

For silver: 

Sept

295 NOTICE(S) FILED TODAY FOR

1,475,000 OZ/

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

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XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: BID $6324/OFFER $6409: DOWN  $92(morning)

Bitcoin: BID/ $6377/offer $6467: DOWN  $39(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: $1206.75

NY price  at the same time:$1202.25

 

PREMIUM TO NY SPOT: $4.50

XX

Second gold fix early this morning: $ 1206.26

 

 

USA gold at the exact same time:$1201.50

 

PREMIUM TO NY SPOT:  $4.76

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 ROSE BY A SMALL 420 CONTRACTS FROM 210,042 UP TO 210,462 DESPITE YESTERDAY’S SMALL 4 CENT FALL IN SILVER PRICING AT THE COMEX. TODAY 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.  1230 EFP’S FOR DECEMBER AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 1230 CONTRACTS. WITH THE TRANSFER OF 1230 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 1230 EFP CONTRACTS TRANSLATES INTO 6.15MILLION OZ  ACCOMPANYING:

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

2. THE STRONG AMOUNT OF SILVER OUNCES WHICH STOOD FOR THE JUNE/2018 COMEX DELIVERY MONTH. (5.420 MILLION OZ);  30.370 MILLION OZ  STANDING FOR DELIVERY IN JULY, FOR AUGUST: 6.065 MILLION OZ AND NOW 30.345 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: 

12,026 CONTRACTS (FOR 4 TRADING DAYS TOTAL 12,026 CONTRACTS) OR 60.130 MILLION OZ: (AVERAGE PER DAY: 3006 CONTRACTS OR 15.03 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF SEPT:  60.130 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 8.59% 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:           2,097.96    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 SMALL SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 420 DESPITE THE 4 CENT FALL IN SILVER PRICING AT THE COMEX YESTERDAY. THE CME NOTIFIED US THAT WE HAD A GOOD SIZED EFP ISSUANCE OF 1230  CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) .

TODAY WE GAINED A GOOD SIZED: 1650 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:

i.e 1230 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A INCREASE OF 420  OI COMEX CONTRACTS. AND ALL OF THIS GAIN IN DEMAND HAPPENED WITH A SMALL 4 CENT LOSS IN PRICE OF SILVER  AND A CLOSING PRICE OF $14.16 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 30.345 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 30.345 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 ROSE BY A good SIZED 3634 CONTRACTS UP TO 469,843 WITH THE GAIN IN THE COMEX GOLD PRICE/YESTERDAY’S TRADING (A RISE IN PRICE OF $3.05)THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A GOOD  SIZED 4749 CONTRACTS:

OCTOBER HAD EFP’S ISSUED AND, DECEMBER HAD AN ISSUANCE OF 4749 CONTACTS  AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 469,843. 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 STRONG SIZED OI GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 8,383 CONTRACTS:  3634 OI CONTRACTS INCREASED AT THE COMEX AND 4749 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN:  8,383 CONTRACTS OR 838,300 OZ = 26.07 TONNES.  AND ALL OF THIS HUGE  DEMAND  OCCURRED WITH A TINY  GAIN IN THE PRICE OF GOLD/ YESTERDAY TO THE TUNE OF $3.05

 

 

 

YESTERDAY, WE HAD 5303 EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF SEPT : 30,034 CONTRACTS OR 3,003,400 OZ OR 93.41 TONNES (4 TRADING DAYS AND THUS AVERAGING: 7509 EFP CONTRACTS PER TRADING DAY OR 750,900 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: 93.41 TONNES

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

THUS EFP TRANSFERS REPRESENTS 93.41/2550 x 100% TONNES =  3.66% OF GLOBAL ANNUAL PRODUCTION SO FAR IN JULY ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:     5,290.36*  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 INCREASE IN OI AT THE COMEX OF 3634 WITH THE GAIN IN PRICING ($3.05 THAT GOLD UNDERTOOK YESTERDAY) // .  WE ALSO HAD A STRONG NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 4749 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 4749 EFP CONTRACTS ISSUED, WE HAD A GAIN OF 8383 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

4749 CONTRACTS MOVE TO LONDON AND 3634 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 26.07 TONNES). ..AND THIS HUGE DEMAND OCCURRED WITH A TINY GAIN OF $3.05 IN YESTERDAY’S TRADING AT THE COMEX.

 

 

we had: 63 notice(s) filed upon for 6300 oz of gold at the comex.

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

GLD...

WITH GOLD DOWN $3.75  TODAY: / 

A CHANGE IN GOLD INVENTORY AT THE GLD/  ANOTHER WITHDRAWAL OF 1.48 TONES

 

 

 

/GLD INVENTORY   745.44 TONNES

Inventory rests tonight: 745.44 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 2  CENTS TODAY

A REAL SHOCKER:

WE HAD A  HUGE DEPOSIT OF: 3.008 MILLION OZ INTO THE SLV

 

 

 

 

/INVENTORY RESTS AT 332.717 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 ROSE BY A SMALL SIZED 420 CONTRACTS from 210,042 UP TO  210,462  AND MOVING A LITTLE CLOSER TO  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, 1230 CONTRACTS FOR DECEMBER AND  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1230 CONTRACTS . EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  OI GAIN AT THE COMEX OF 420 CONTRACTS TO THE 1230 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A NET GAIN OF 1650 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 8.250 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 30.345  MILLION OZ INITIALLY STAND FOR SILVER IN SEPTEMBER….

 

 

RESULT: A SMALL SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE 4 CENT PRICING LOSS THAT SILVER UNDERTOOK IN PRICING YESTERDAY. BUT WE ALSO HAD A  GOOD SIZED 1230 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) FRIDAY MORNING/ THURSDAY NIGHT: Shanghai closed UP 10.71 POINTS OR 0.40%   /Hang Sang CLOSED DOWN 1.35 POINTS OR 0.01%/   / The Nikkei closed DOWN 180.88 POINTS OR 0.80%/Australia’s all ordinaires CLOSED DOWN 0.25%  /Chinese yuan (ONSHORE) closed DOWN  at 6.8425 AS POBC RESUMES SLIGHTLY ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER/Oil DOWN to 67.86 dollars per barrel for WTI and 76.67 for Brent. Stocks in Europe OPENED RED //.  ONSHORE YUAN CLOSED DOWN AT 6.8425 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8480: HUGE DEVALUATION/PAST SEVERAL DAYS RESUMES// TRADE TALKS NOT DOING TOO GOOD   : /ONSHORE YUAN TRADING  STRONGER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING  WEAKER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

 

 

 

 

3A/NORTH KOREA/SOUTH KOREA

i)North Korea/South Korea/USA/

 

 

 

 

b) REPORT ON JAPAN

 

3 C/  CHINA

i)China intercepts a British warship in the Parcel Islands, in international waters as they claim expanded territorial rights.  The uSA is not amused

( zerohedge)

ii)And now the shocker: after just initiating another 200 billion dollars worth of tariffs on China, Trump states that he will impose another $267 billion in additional tariffs.  That cut the market totally by surprise as the Dow plummeted and the dollar rose  (CNY plummets). Will China devalue the yuan to 7 to one and set off a contagion like never before.

(courtesy zerohedge)

 

4/EUROPEAN AFFAIRS

i)Mainland China orders NHA to sell its entire stake in Deutsche bank and that sends its stock southbound.

( zerohedge)

ii)This could present many problems.  Danish owned Danske bank in Estonia laundered an astonishing 150 billion dollars as a criminal investigation has been launched.  This comes 6 months after neighbour Latvian bank ABLV was also caught dealing in bribery and money laundering

( zerohedge)

 

iii)An excellent paper from Michael Harnett of Bank of America. In 1998 we had contagion but the stimulus to that contagion was the piercing of the bubble in Japan.  That set of Japan into a two decade period of deflation. The contagion of 2018 is missing one ingredient…what will be the big piercing of a bubble.  His answer:  Europe with it’s huge debt and now the ECB willing to stop the purchase of sovereign bonds from which those in the southern half of Europe will certainly fell the pain

( zerohedge)

 

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)Iraq/USA

Last night the Green zone was under attack when at least 3 mortars struck near the USA embassy gate in the heart of the Iraqi capital.

( zerohedge)

ib )The Sunni denominated Basra witnesses the storming of the Iranian embassy in the oil rich area.  This follows shia forces shelling the Green zone inside the capital of Baghdad

( zerohedge)

ii)SYRIA/USA

Trump does another 180 degree shift and now calls on a regime change in Syria

( zerohedge)

iii)Turkey/IRAQ/CYPRUS/ISRAEL
An extremely important commentary from our experts on Middle Eastern affairs: GEFIRA.
Gefira outlines 3 specific areas where Turkey will secure oil due to the fact that they need to import 1 million barrels of oil per day and their lira is falling, making these expenditures cost prohibitive.
1. Take over the oil fields in Kirkuk, Iraq.
2. take over the gas fields surrounding the Israeli-Cyprus discovery
3. forge alliances with Qatar and secure their supplies of LNG
(courtesy GEFIRA)

iv)Iran

The economy in Iran is tanking faster than a speeding bullet as the Riyal reaches 150,000 to one and many staple goods disappear like diapers

(courtesy zerohedge)

6. GLOBAL ISSUES

 

 

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

i)The gold market intervention in June by the BIS translates into a loss of 100 dollars per oz

( Robert Lambourne/GATA)

ii)The next stage for gold as there will be a realignment of monetary systems and that system will be backed by gold.  This is why China and Russia have been massively buying gold

(courtesy Alasdair Macleod/GATA)

iii)My goodness:  demand for gold in China is again on the rise with SGE withdrawals = demand coming in at 191 tonnes.  If they continue on this pace, they will exceed 2200 tonnes of gold. To get the customer demand you must remove the sovereign gold addition.  China now produces around 420 tonnes per year.  We should also subtract around 100 tonnes for scrap gold.  Thus demand from the Chinese citizens:  1680 tonnes per year and this gold will all come from the west.

( Lawrie Williams/Sharp’s Pixley)

iv)Good reason for the crooks to bash silver; silver demand surges enough to empty the Mint of their 2018 American eagles.

( Adrian Ash)

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

 

i)Market trading /GOLD/MARKET MOVERS:

MARKET TRADING

Dollar rises, yields rise on a red hot wage gain plus gain in hourly earnings

(courtesy zerohedge)

ii)Market data

a)Supposedly the wage growth comes in red hot as they add 201,000 jobs above the 191,000 consensus. The key hourly earnings also game in red hot rising to .4% much higher than the expected .2%.  The dollar rises, gold falls, and yields spike  (see above)

( zerohedge)

 

iii)USA ECONOMIC/GENERAL STORIES

 

 

iv)SWAMP STORIES

a)The FBI hid the fact that on wiretaps, Russia thought Carter Page was an “idiot” and unworthy of recruiting.  These facts were left out of the FISA applications

( zerohedge)

b)Guiliani states (and he is correct to do so) that Trump will not answer any questions about obstruction

( zerohedge)

c)Trump on the warpath as he demands Sessions to investigate that anonymous Op-Ed.  He is also looking at legal action. I personally do not think it is anybody at the senior level.  I agree with Craig Roberts that it was written by a deep stater like Brennan or Rosenstein(courtesy zerohedge)

 

 

 

 

Let us head over to the comex:

 

The total gold comex open interest ROSE BY A CONSIDERABLE SIZED 3634 CONTRACTS UP to an OI level 469,843 WITH THE RISE IN THE PRICE OF GOLD ($3.05 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 4749 EFCONTRACTS WERE ISSUED:

OCTOBER: 0 EFP’S AND DECEMBER:  4749 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  4749 CONTRACTS.

THE OBLIGATION STILL RESTS WITH THE BANKERS ON THESE TRANSFERS. ALSO REMEMBER THAT THERE IS NO DOUBT A HUGE DELAY IN THE ISSUANCE OF EFP’S AND IT PROBABLY TAKES AT LEAST  48 HRS AFTER LONGS GIVE UP THEIR COMEX CONTRACTS FOR THEM TO RECEIVE THEIR EFP’S AS THEY ARE NEGOTIATING THIS CONTRACT WITH THE BANKS FOR A FIAT BONUS PLUS THEIR TRANSFER TO A LONDON BASED FORWARD.

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES: A 8383 TOTAL CONTRACTS IN THAT 4,749 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED 3634 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES:  8383 contracts OR 838,300  OZ OR 26.07 TONNES.

Result: A GOOD SIZED INCREASE IN COMEX OPEN INTEREST WITH THE RISE IN PRICE/ YESTERDAY (ENDING UP WITH THE GAIN IN PRICE OF $2.30). THE  TOTAL OPEN INTEREST LOSS ON THE TWO EXCHANGES:  8383 OI CONTRACTS..

We are now in the active contract month of SEPTEMBER. For the September contract month, we lost 3 contracts and thus the number of  open interest contracts standing for gold in this front month is 89 contracts. We had 5 notices filed  yesterday so we surprisingly again gained 2 contracts or an additional 200 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 1465 CONTRACTS DOWN TO 43,736 NOVEMBER SAW A 2 CONTRACT GAIN TO STAND AT 19. DECEMBER SAW ITS OPEN INTEREST RISE BY 1225 CONTRACTS UP TO 360,219.

WE HAD 63 NOTICES FILED AT THE COMEX FOR 6300 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.

 

 

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And now for the wild silver comex results.

Total silver OI ROSE BY A SMALL SIZED 420 CONTRACTS FROM 210,042 DOWN TO 210,462 (AND CLOSER TO 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 LOSS IN PRICING.

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF SEPT.AND, WE WERE  INFORMED THAT WE HAD A GOOD SIZED 1230 EFP CONTRACTS:

FOR SEPT:  0 CONTRACTS  AND FOR DECEMBER: 1230 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: 1230.  ON A NET BASIS WE GAINED 1650 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED 420 CONTRACT GAIN AT THE COMEX COMBINING WITH THE ADDITION OF 1230 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN ON THE TWO EXCHANGES:  A SMALL 1650 CONTRACTS…AND ALL OF THIS DEMAND OCCURRED WITH A TINY 4 CENT LOSS

 

 

 

The next active delivery month after August for silver is September and here the OI FELL by 332 contracts DOWN to 1110.

We had 291 notices filed on yesterday so we lost 41  number of contracts or 205,000 oz will not  stand at the comex as these guys accepted a fiat bonus on top of a 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 took a little holiday.

 

 

 

 

October gained 28  contracts to stand at 675. November saw a gain of 0 contracts to stand at 14.

After Nov., the next big delivery month is December and here the OI rose by 314 contracts UP to 185,603 contracts.

We had 295 notice(s) filed for 1,475,000 OZ for the SEPTEMBER 2018 COMEX contract for silver

 

 

 

Trading Volumes on the COMEX

 

PRELIMINARY COMEX VOLUME FOR TODAY: 274,442 contracts

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  304,644 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 30.345 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. 7-/2018.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
1286.000 oz
INT.DELAWARE
40 KILOBARS
Deposits to the Dealer Inventory in oz NIL oz
Deposits to the Customer Inventory, in oz  

nil

oz

 

 

No of oz served (contracts) today
63 notice(s)
 6300 OZ
No of oz to be served (notices)
26 contracts
(2600 oz)
Total monthly oz gold served (contracts) so far this month
498 notices
49800 OZ
1.5489 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 1 withdrawals out of the customer account:
III) out of Scotia 1286.000 oz 40 kilobars)
total customer withdrawals:  1286.000 oz
we had 0 customer deposit
total customer deposits: nil oz
we had 1 adjustments
and it may indicate a settlement for gold:
ii) Out of Int Delaware:  482.25 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 63 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 12 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 (498) x 100 oz or 49,800 oz, to which we add the difference between the open interest for the front month of SEPT. (89 contracts) minus the number of notices served upon today (63 x 100 oz per contract) equals 52,400 OZ OR 1.629 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 (498 x 100 oz)  + {89)OI for the front month minus the number of notices served upon today (63 x 100 oz )which equals 52,400 oz standing OR 1.629 TONNES in this NON  active delivery month of SEPTEMBER.

Strangely, we added 2 contracts or an additional 200 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 4.529 TONNES OF REGISTERED COMEX GOLD AVAILABLE FOR DELIVERY AGAINST 1.6290 TONNES STANDING FOR SEPTEMBER  

 

 

 

total registered or dealer gold:  146,102.034 oz or   4.529 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. 7/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
 90,198.316 oz CNT
Delaware

 

 

Deposits to the Dealer Inventory
505,360.08
oz
Brinks
Deposits to the Customer Inventory
600,938.340
oz
Brinks
No of oz served today (contracts)
295
CONTRACT(S)
(1,475,000 OZ)
No of oz to be served (notices)
815 contract
(4,075,000 oz)
Total monthly oz silver served (contracts) 5254 contracts

(26,270,000 oz)

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

we had 1 inventory movement at the dealer side of things

 

i) Into the dealer Brinks:  505,360.08 oz

total dealer deposits: 505,360.08 oz

total dealer withdrawals: nil oz

we had 1 deposit into the customer account

i) Into JPMorgan: nil oz

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

JPMorgan now has 145.4 million oz of  total silver inventory or 50.8% of all official comex silver. (145 million/286 million)

 

 

ii) Into Brinks:  600,937.340 oz

 

 

 

 

 

 

 

 

total customer deposits today: 600,937.340 oz

we had  2 withdrawals from the customer account;

i) Out of CNT: 89,213.616 oz

ii) out of Delaware: 984.700 oz

 

 

 

 

total withdrawals: 90,198.316 oz

we had 2  adjustment

i) out of CNT: 815,346.594 oz was adjusted out of the customer and this landed into the dealer account of CNT

ii) Out of Brinks:  230,819.04 oz was adjusted out of the dealer and this landed into the customer account of Brinks

this is probably a settlement in the delivery process.

 

 

 

 

 

 

total dealer silver:  89.481 million

total dealer + customer silver:  296.311 million oz

The total number of notices filed today for the SEPTEMBER. contract month is represented by 295 contract(s) FOR 1,475,000 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 5254 x 5,000 oz = 26,270,000 oz to which we add the difference between the open interest for the front month of SEPTEMBER. (1110) and the number of notices served upon today (295 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the SEPT/2018 contract month: 5254(notices served so far)x 5000 oz + OI for front month of SEPTEMBER(1110) -number of notices served upon today (295)x 5000 oz equals 30,345,000 oz of silver standing for the SEPT contract month.  This is a huge number of oz standing!!

We LOST 41 contracts or an additional 205,000 oz will NOT stand at the comex as they morphed into London based forwards as well as accepting a fiat bonus

 

 

 

 

 

 

 

 

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ESTIMATED VOLUME FOR TODAY:  78,410 CONTRACTS   

 

 

CONFIRMED VOLUME FOR YESTERDAY: 75,738 CONTRACTS..

 

 

YESTERDAY’S CONFIRMED VOLUME OF 75,738 CONTRACTS EQUATES TO 378 million OZ  OR 54.1% 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 FALLS TO -3.89% (SEPT.4/2018)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.39% to NAV (SEPT 4/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -3.89%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 12.10/TRADING 11.59/DISCOUNT 4.14.

END

And now the Gold inventory at the GLD/

SEPT 7/WITH GOLD DOWN $3.75: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.48 TONNES OF GOLD FROM THE GLD VAULTS/INVENTORY LOWERS TO 745.44 TONNES

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

 

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SEPT 7/2018/ Inventory rests tonight at 745.44 tonnes

*IN LAST 451 TRADING DAYS: 185.57 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 351 TRADING DAYS: A NET 29.03 TONNES HAVE NOW BEEN REMOVED FROM GLD INVENTORY.

 

end

 

Now the SLV Inventory/

SEPT 7/WITH SILVER DOWN 2 CENTS (AND DOWN 48 CENTS FOR THE WEEK): WE HAD A HUGE DEPOSIT OF 3.008 MILLION OZ INTO THE SLV/

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 7/2018:

Inventory 332.717 MILLION OZ

 

6 Month MM GOFO 2.01/ and libor 6 month duration 2.54

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

G0FO+ 2.01

 

libor 2.54 FOR 6 MONTHS/

GOLD LENDING RATE: .53%

XXXXXXXX

12 Month MM GOFO
+ 2.43%

LIBOR FOR 12 MONTH DURATION: 2.85

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.42

end

At 3:30 pm we receive the COT report which in reality has no intrinsic value as we have no idea what happens to the EFP’s

First the gold COT

 

Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
199,762 213,259 55,455 168,732 162,207 423,949 430,921
Change from Prior Reporting Period
-7,608 2,826 -5,369 3,151 -11,636 -9,826 -14,179
Traders
163 107 81 54 47 255 199
 
Small Speculators   © GoldSeek.com   
Long Short Open Interest  
49,169 42,197 473,118  
3,661 8,014 -6,165  
non reportable positions Change from the previous reporting period
COT Gold Report – Positions as of Tuesday, September 4, 2018

our large speculators

those large specs who have been long in gold pitched (transferred) a huge 7608 contracts from their long side

those large specs who have been short in gold added 2826 contracts to their short side.

specs go net short by 10,400 contracts.

our commercials

those commercials who have been long in gold added 3151 contracts to their long side

those commercials who have been short in gold covered a huge 11,635 contracts

commercials go net long by 14,500 contacts

our small speculators.

those small specs who have been long in gold added 3661 contracts to their long side

those small specs who have been short in gold added 8014 contracts to their short side

Conclusions:  the specs have never been this net short and commercials have never been this net long at the comex

however we do not know what happened to all of those EFP issuance.

 

silver COT

Silver COT Report: Futures
Large Speculators Commercial
Long Short Spreading Long Short
83,061 112,035 16,989 81,421 66,808
-3,479 8,897 -4,065 -6,117 -19,313
Traders
107 80 42 46 33
Small Speculators Open Interest Total
Long Short 212,391 Long Short
30,920 16,559 181,471 195,832
-1,277 -457 -14,938 -13,661 -14,481
non reportable positions Positions as of: 172

our large speculators

those large specs who have been long in silver pitched (transferred) 3479 contracts from their long side

those large specs who have been short in silver added a huge 8897 contracts to their short side

our commercials

those commercials who have been long in silver pitched (transferred) 6117 contracts from their long side

those commercials who have been short in silver covered (transferred) a huge 19313 contracts from their short side.

our small speculators.

those small specs who have been long in silver pitched (transferred) 1277 contracts from their long side

those small specs who have been short in silver covered (transferred) 457 contracts from their short side.

wow!! this is unbelievable

the speculators are now at record levels of net short

and the commercials are now at record levels of net long

Major gold/silver trading /commentaries for FRIDAY

GOLDCORE/BLOG/MARK O’BYRNE.

 

 

Gold Remains An “Excellent Way to Hedge” for Longer Term – BNP Interview

– “Why hedge because everything is going straight up”?
– Now “is exactly the time when should hedge” as volatility in U.S. markets is low
– “September is the most dangerous month of the year for equities”
– Gold is an “excellent way to hedge for the longer term against the possibility that both equities and bonds go down together at some point and that is quite likely in the next 12 months…
– “Hedging is a form of insurance. You want to buy it when it is cheap and you hope never to use it”
– “The best time to hedge is when prices are low”

Watch Bloomberg Video of BNP Paribas’ global head of equity derivative strategy Edmund Shing on hedging the U.S. markets and gold as a long term hedge and insurance

 

 

News and Commentary

Gold rises on dollar weakness, physical demand (Reuters.com)

Asian Stocks Head for One-Year Low, Yen Advances (Bloomberg.com)

Nasdaq falls as U.S. lawmakers grill Facebook, Twitter executives (Reuters.com)

US Mint Gold Coins sales sink in August (ScrapRegister.com)

U.S. Trade Gap Widens Most Since 2015; China Deficit Hits Record (Bloomberg.com)


Source: Bloomberg.com

ASIA’s super rich advised to add more gold to their portfolios (SCMP.com)

Gold And Silver Are Acting Like It’s 2008. They May Be Right (DollarCollapse.com)

Gold’s Ratio to Silver Hits Its Highest Level Since 2008 (Bloomberg.com)

Emerging-Market Contagion Fear Sparks Deepening Rout: Inside EM (Bloomberg.com)

Why Pain in Argentina And Turkey Is Hurting Indonesia (Bloomberg.com)

America’s Finances Seem Fishy (BonnerAndPartners.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below


Gold Prices (LBMA AM)

05 Sep: USD 1,194.70, GBP 932.46 & EUR 1,031.74 per ounce
04 Sep: USD 1,195.75, GBP 932.57 & EUR 1,034.20 per ounce
03 Sep: USD 1,201.70, GBP 933.00 & EUR 1,035.75 per ounce
31 Aug: USD 1,206.85, GBP 927.58 & EUR 1,034.03 per ounce
30 Aug: USD 1,202.35, GBP 924.25 & EUR 1,028.49 per ounce
29 Aug: USD 1,204.30, GBP 935.14 & EUR 1,032.33 per ounce

Silver Prices (LBMA)

05 Sep: USD 14.17, GBP 11.05 & EUR 12.22 per ounce
04 Sep: USD 14.25, GBP 11.11 & EUR 12.33 per ounce
03 Sep: USD 14.53, GBP 11.27 & EUR 12.50 per ounce
31 Aug: USD 14.66, GBP 11.27 & EUR 12.56 per ounce
30 Aug: USD 14.67, GBP 11.27 & EUR 12.54 per ounce
29 Aug: USD 14.69, GBP 11.40 & EUR 12.60 per ounce


Recent Market Updates

– Video: Gold Surges To Record Highs In Emerging Market Currencies – New Highs In USD, EUR, GBP In the Coming Months?
– September Is The Best Month For Gold and Worst Month For Stocks
– Pound Investors Face Months of Volatility Into Brexit Endgame
– This Week’s Golden Nuggets
– Video: “Financial War” Deepens as Russia Buys Gold and Dollar Hegemony At Risk – Rickards on CNN
– Will Indebted Nations Globally Follow Venezuela Into Hyperinflation?
– End Of Dollar Hegemony May Happen Soon and Badly Impact Indebted America
– 10 Incredible Photos From Venezuela Show The Disastrous Risks Of Currency Devaluation
– This Week’s Golden Nuggets
– Video: Is Silver Set for a Massive Breakout?
– Banks Now Long Gold, Short Dollar. What Do They Know?
– Russia Buys 800,000 Ounces Of Gold In July
– Gold Season – Is This It?

Mark O’Byrne
Executive Director

 

 
 
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

The gold market intervention in June by the BIS translates into a loss of 100 dollars per oz

(courtesy Robert Lambourne/GATA)

Gold market intervention by BIS declines after $100 price plunge

 Section: 

By Robert Lambourne
Thursday, September 6, 2018

Gold swaps and gold derivatives undertaken by the Bank for International Settlements appear to have declined by about 24 percent in August, according to the bank’s statements of account for that month and July:

https://www.bis.org/banking/balsheet/statofacc180831.pdf

https://www.bis.org/banking/balsheet/statofacc180731.pdf

The information provided in the BIS’ monthly statements is not sufficient to calculate a precise amount of gold-related derivatives, including swaps, but the bank’s total estimated exposure as of August 31 was about 370 tonnes of gold, down 115 tonnes from the approximately 485 tonnes as of July 31.

The bank’s gold swaps and derivatives had increased by 17 percent from June through July. During this period the gold price fell by about $100 per ounce.

The BIS provides little information on what it is doing in the gold market, why, and for whom and refuses to answer questions about its activity in the market:

http://www.gata.org/node/17793

But it is evident that the bank continues to trade constantly in gold, and its secrecy engenders suspicion that the bank seeks to control the monetary metal’s price on behalf of its member central banks.

—–

Robert Lambourne is a retired business executive in the United Kingdom who consults with GATA about the involvement of the Bank for International Settlements in the gold market.

END

The next stage for gold as there will be a realignment of monetary systems and that system will be backed by gold.  This is why China and Russia have been massively buying gold

(courtesy Alasdair Macleod)

Alasdair Macleod: Apocalypse, or not?

 Section: 

1:33p ET Thursday, September 6, 2018

Dear Friend of GATA and Gold:

Civilization is not heading for the apocalypse, GoldMoney research director Alasdair Macleod writes today, but rather toward a realignment of empires and monetary systems, away from domination by the United States and its dollar toward Asian power and the return of sound money — currencies backed by and convertible into gold.

But Macleod acknowledges that the transition won’t be smooth.

His analysis is headlined “Apocalypse, or Not?” and it’s posted at GoldMoney here:

https://www.goldmoney.com/research/goldmoney-insights/apocalypse-or-not-…

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

Alasdair Macleod….

Apocalypse, Or Not?

Members of the American libertarian movement, particularly extremist preppers, are often associated with a belief that a complete breakdown in society is the only outcome from government economic policies and will lead to complete social disintegration. At the centre of their concerns is monetary destruction, with other issues, such as the erosion of personal freedom and the right to bear arms, important but peripheral. They cite history, particularly the hyperinflationary collapses, from Rome to Zimbabwe, and now Venezuela. They draw on Austrian economic theory, which fans their dislike of government and their expectation of total chaos.

Properly reasoned economic theory certainly reduces the science to one of black and white conclusions, which suits conclusion-jumpers. But the whole point of it is to explain society’s errors, so that they may be corrected. It is only by understanding the errors of state intervention and socialism, both communistic and fascist, that solutions can be found. Solutions then need to be applied, not taken into a mountain or forest retreat never to be implemented.

The real world does not work on black and white economic theories. It progresses along a muddled course, torn between statist mistakes and society’s unending patience with government intervention. Governments are the source of all wars and wealth destruction, but societies tolerate them. Philosophers have argued over this from Plato versus Aristotle onwards, and we are still here, two and a half millennia later, chewing over the same bones.

History records our philosophical chewing, and Man’s continuing conflict with and tolerances of the state. It records the rise and fall of kings, emperors, dictators and governments. Hermits and other preppers come and go, either unrecorded or, like Saint Simeon Stylites, noted as little more than historical footnotes. To future generations, prepping will almost certainly be a bygone curiosity, and humanity will continue despite government suppression.

This article is an attempt to rationalise an apparently apocalyptic future into how it is likely to evolve over the coming years. In the absence of a nuclear Armageddon, what we fear, more than anything else, is actually uncertainty and change.

Out with the old

Uncertainty and change are with us all the time. In a truly free market economy we embrace it because they are driven by our personal economic interests, and it is a continual process. But the desire for change is driven by us only in our role as consumers; as workers or businessmen facing competition for our existing labour and skills we tend to resist it. It is that side of us that a government taps into.

Modern governments, except where they are overtly mercantilist, don’t do change. Their support, indeed their reason for being, is based on anti-progressive lobbying from both establishment businesses and socialistic pressure groups. Government economists do not recognise progress, living in a stagnant world of historical statistics. Progressive change interferes with their certainties and is therefore never properly considered.

This is what the welfare states in the West have become, societies managed by anti-progressive governments, nominally responsible to their electorates, but in fact with a life of their own. The interests of governments have long since departed from those of consumers and increasingly conflict with their needs and wants. It is a process that has evolved to the current position over the last hundred years, when governments had understood their role should be strictly limited to identifiable national interests, when government employees deferred to the general public as their civil servants, and importantly, when the national currency was based on money chosen collectively by individuals.

It is therefore a much larger issue than just money. It is about the direction of political travel. For individuals it has become a prolonged road to serfdom, where power and personal freedom have been sequestered by the government from the consumer. The consumer has lost the right to keep his own income, and his preferences are now regarded by the state as subject to its control, to plan and dispose of as it sees fit.

The so-called free world was first ruled by the British and then by the Americans. The roots of both regimes were trade, protected by a government enforcing the rules of property ownership, the certainties of contract law and laws that protected individuals in their interpersonal relationships. As law-makers, governments now legislate to extend control over their peoples. And now the American government, in the name of American business, is even directing its own citizens not to buy from foreigners and is taxing them if they do so.

It is not the first time the state has interfered with our preferences in this way. The lurch into protectionism that led to the Smoot-Hawley Tariff Act of 1930 was one example, and the nationalisation policies of Britain’s post-war government another. These were errors from which a retreat proved possible. Today, the West’s democratic system has reached a point from which no ordered retreat back to free markets, to personal freedom and to governments which serve the people and not themselves, seems possible. Change will only come from the ultimate collapse of a system that promotes interests over freedom.

Transiting to the new

Western doomsters, seeing the contradictions around them and armed with little more than libertarian ideals, believe the world is coming to an impasse. They know it will end badly, and America’s resistance to decline by retreating into yet greater suppression of freedom confirms this view. The mistake is to assume nothing will replace the disintegration of the American state.

Money is the talisman for the doomsters’ vision. The destruction of paper currencies is inevitable, they say. Given these dissenters are very much American-based, their approbation is reserved for the dollar. But we should all take notice because the dollar is the reserve currency. That is to say, we measure our own currencies primarily against the dollar, and we use the dollar to settle our international trade. Our central banks tend to the view that they should generally manage their currencies in dollar terms. Therefore, if the dollar falls, we should all fall with it.

After a temporary bout of strength, concerns that the dollar will enter a terminal decline are spreading in some quarters. There are those who point to the seemingly limitless accumulation of unproductive debt, and the fact that the lessons from succeeding credit crises are always ignored. Today, the chatter is of a global monetary reset, with proposed solutions incorporating debt write-offs, the mobilisation of super-monies such as SDRs, and monetary applications of blockchain technology. The libertarians talk of total monetary failure and of gold, somehow rising from the ashes of the dollar’s immolation. All these solutions ignore wider issues. For the fact of the matter is we face the end of an empire. The American global empire is being superseded by an Asian phoenix.

The loss of influence to rivals is always painful. America’s geopolitical strategists feel acutely threatened by the Russian-Chinese partnership. America’s backing for Georgia in 2008, stimulating colour revolutions in Ukraine, and a proxy war over Syria have all failed to destabilise Russia. Afghanistan and Iran are works in progress, or rather non-progress. In the past, America could rely on unwavering support from her NATO allies. One of them, Turkey, has now all but defected, and the Europeans are breaking ranks on sanctions over Iran and Russian energy imports.

American trade tariffs against China must also be regarded in this light. Recent moves to retain influence in key African nations as well are too late. China is already the largest infrastructure provider to sub-Saharan Africa by far, and she is not making the mistake of just giving money to African politicians. The politicians get their money from extended aid and new donations dressed up as trade deals from America and Britain, as they always have. The West cannot even buy respect, let alone influence, because the Chinese are doing the real work.

America never had very much influence in sub-Saharan Africa anyway. Instead, she focused on North Africa and the Middle East. Regimes from Iraq to Libya have been changed at America’s behest.

It was the agreement with Saudi Arabia in 1974 that oil would be sold exclusively for dollars that legitimised the dollar as the global trade and pricing currency. When Iraq proposed to sell oil for euros, it was invaded, and Saddam Hussein deposed and executed. When Libya proposed a new central African currency based on gold, civil war suddenly broke out and Ghadaffy was hounded and shot by a mob. The message was simple: don’t mess with America and the dollar.

This has now changed. China is buying oil for yuan, and there’s nothing America can do about it. America has tried to destabilise Russia with dollar sanctions, unsuccessfully. President Trump has leant on Angela Merkle not to do business with Russia and Iran. He has also threatened this NATO ally with trade tariffs. The message to Germany is clear, the alliance with America no longer applies. Consequently, Germany is quietly turning her back on America and continuing to trade with Russia. The old threats just don’t work anymore.

China and Russia have long planned to jointly lead Asia and Eastern Europe into a new economic bloc. The Shanghai Cooperation Organisation was set up firstly to coordinate security and anti-terrorist activities, but this morphed into unifying Asian trade. China is building the infrastructure to make the Asian continent the most powerful economic unit ever seen. No doubt she will rebuild Syria when the Americans have left. No wonder America’s strategic planners are worried.

Post-apocalypse currencies

In 1983, China enacted the Regulations of the PRC on the Control of Gold and Silver, giving the People’s Bank of China the responsibility for all the nation’s gold and silver resources under Article 4 of those regulations. In 2002, the Shanghai Gold Exchange was launched by the PBOC and private individuals were permitted to own gold. It is clear that the PBOC over two decades had accumulated sufficient gold to then allow ordinary citizens to do the same. China even advertised the merits of gold ownership, encouraging individuals to accumulate gold. We have no knowing how much gold the Chinese state had accumulated, but given contemporary gold prices, inward dollar flows in the 1980s and trade surpluses thereafter, China could easily have accumulated a strategic reserve of 20,000 tonnes before the public was authorised to acquire gold. We may never know the true figure. We do know that in addition to the state’s accumulation, some 17,000 tonnes have been withdrawn from SGE vaults by the general public.

The Russian government has belatedly begun to accumulate gold reserves, and has now declared reserves of 2,170 tonnes, and importantly, has reduced its dollar reserves substantially to do so. Even India, a staunchly Keynesian state, has finally started accumulating additional gold reserves, having repeatedly tried and failed to encourage its own people to transfer gold to the government. Its nationals have probably accumulated over 10,000 tonnes since the Gold Control Act was repealed in 1990. Other Asian states from Turkey to Mongolia have all been building official gold reserves as well.

There can be no doubt that Asians and their governments not only hold the traditional view that gold is the ultimate money, but their coordinated physical accumulation is strong circumstantial evidence that gold will have an official monetary role in future. In this context, even Germany’s gold policy is interesting. We know the Bundesbank traditionally retains a strong anti-inflation bias and is unlikely to view the ECB’s management of the euro with favour. Furthermore, Germany decided to repatriate some of her gold reserves held at the New York Fed. After an embarrassing row with the US authorities, the gold sought was eventually returned. Various motives were ascribed to this move by Germany, but perhaps the most interesting possibility – which was never reported – is that Germany’s deep state was looking to the East.

Other European nations, particularly France and Italy, retain substantial gold reserves, which places them in a good position to adapt to a Eurasian world without the dollar. We can see that a future without it, and without other fiat currencies backed by nothing other than dollar reserves is certainly possible. It will involve enormous challenges, not least for governments relying on inflationary financing. To secure sound money, governments will be forced to discard socialism and embrace freer markets to bring their own financial demands under control. Those that don’t could rapidly descend into an Argentinian or even a Venezuelan monetary hell.

The US, which still records the largest official reserves, can also stabilise the dollar by offering gold backing and convertibility. To do so would require a significantly higher gold price, as indeed would be the situation for China’s yuan. But it also requires an enormous leap in official imagination, not only concerning gold’s reintroduction as backing for the dollar, but over America’s imperial role. It requires an acceptance that America can never win the geopolitical war with China and Russia, and must accept a diminished global status, just as Britain did when she rapidly shed her colonies in the 1960s.

It is hard to see America giving up her hegemony willingly, and therefore it will be down to events. America and other welfare states also face a transition into more free-market oriented economies with considerably less state intervention. That will not be easy either. Furthermore, there is no guarantee Russia and China will take on the mantle of world domination successfully, but we can be reasonably certain they have planned for this eventuality for a long time.

In the absence of a transformation towards sound money, the loss of purchasing power for pure fiat money will not be a smooth process. The next credit crisis, itself an event of which we can be sure, will almost certainly be met with lower interest rates and more quantitative easing, designed to support the banks with new money and to finance rocketing government deficits. State-issued currencies are bound to accelerate in their decline following this renewed inflation of supply, but for currencies to really collapse requires the public to change its preferences in favour of goods and totally against fiat money. In practice, the public tends to hold onto their belief in state money longer than might seem reasonable, in the hope that its purchasing power will stabilise.

It will be at the next credit crisis, if not before, that China and Russia will reveal their plans to protect their currencies from a financial and currency collapse in the West.

Conclusion

The prospects for fiat currencies and welfare states are not good, but it is a mistake to think homo economicus will sink with them. The views of the super-bears appear to be fundamentally parochial, particularly among the preppers in America. Instead of society’s destruction, we face a period of seismic change, notably the rise of Asia as the centre for global economic power.

Asia’s two major currencies, the yuan and the rouble, will not survive in their current form. They will have to be backed by gold, but fortunately for the world this has long been China’s backstop plan, and Russia is now belatedly acquiring the gold necessary to back the rouble as well. Depending how China and Russia go about it, this could easily be achieved with current levels of gold backing and a somewhat higher gold price.[i]

America could save the dollar by following suit. She probably has sufficient gold reserves, but to do so requires her to abandon almost everything the government and the Fed currently believe in and is therefore only likely to happen under duress.

But our central conclusion is that we will survive, and to retreat into mountain and jungle hideaways to escape an apocalypse is a mistake. We do not face a new Dark Age. What we do face are some home truths about unsound money, bringing with them considerable uncertainty and change.

[i] I wrote about this here: https://www.goldmoney.com/research/goldmoney-insights/gold-s-monetary-rehabilitation

end
The Fed rejects a plan from a Connecticut bank to offer interest rates equal to what they pay for funds parked at the Fed
(courtesy Chris Powell/Bloomberg)

_

Fed rejects bank for being too safe

 Section: 

1:49p ET Thursday, September 6, 2018

Dear Friend of GATA and Gold:

Bloomberg News opinion columnist Matt Levine today reports that the Federal Reserve is blocking the bid of a bank recently formed in Connecticut to give ordinary bank depositors access to the much higher rate of interest paid by the Fed to regular banks.

The availability to ordinary depositors of such a mechanism, Levine writes, might overthrow the banking business as currently constituted, since ordinary depositors then might flee regular banks to enjoy the risk-free higher interest now reserved for those banks by the Fed.

The Fed’s obstruction of the new bank’s concept seems to confirm longstanding suspicions that the central bank’s primary objective is to serve the banking industry rather than the people.

Levine’s commentary is headlined “Fed Rejects Bank for Being Too Safe” and it’s posted at Bloomberg News here:

https://www.bloomberg.com/view/articles/2018-09-06/fed-rejects-bank-for-…

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

end

My goodness:  demand for gold in China is again on the rise with SGE withdrawals = demand coming in at 191 tonnes.  If they continue on this pace, they will exceed 2200 tonnes of gold. To get the customer demand you must remove the sovereign gold addition.  China now produces around 420 tonnes per year.  We should also subtract around 100 tonnes for scrap gold.  Thus demand from the Chinese citizens:  1680 tonnes per year and this gold will all come from the west.

(courtesy Lawrie Williams/Sharp’s Pixley)

LAWRIE WILLIAMS: Chinese gold demand on the rise

Contrary to media reports suggesting weak Chinese gold demand based primarily on a big fall in gold imports from Hong Kong, the latest gold withdrawal figures out of the Shanghai Gold Exchange paint a very different picture. August gold withdrawals came to just short of 191 tonnes compared with 161 tonnes for the same month a year earlier and 144 tonnes in August 2016. Year to date SGE gold withdrawals at 1,366 tonnes are around 6% up on the first 8 months of 2017 and over 10% up on the corresponding 2016 figure. If this advantage is maintained for the remainder of the year the full year figure could well be in excess of 2,150 tonnes – and bring the full year total close to the second best year for SGE gold withdrawals ever.

Month   2018 2017 2016 % change 2017-2018 % change     2016- 2018
January   223.58 184.41 225.08 +21.2%   -0.7%
February*   118.42 148.24 107.60 -20.1% +10.7%
March  192.61  192.25 183.24   +0.2%  +5.1%
April  212.64  165.78 171.40   +28.3% +24.1%
May  150.58  138.08 147.28   +9.1%  +2.2%
June  140.59  155.51 138.51   -9.6%  +1.5%
July 137.41  144.71 117.58   -5.0%  +16.9%
August   190.59   161.41 144.44 +18.1%  +32.0%
September  214.24 170.90
October*  151.54  153.25
November  189.10  214.72
December  185.21  196.37
Year to date 1,366.43 1290.46 1235.13 +  5.9% +10.6% 
Full Year  2,030.48  1,970.37

Source: Shanghai Gold Exchange. Lawrieongold.com

* These months include week long New Year and Golden Week holiday periods

But back to the Hong Kong figures. The media made great play of the fact that July gold exports from Hong Kong to Mainland China were substantially down on the previous month – China’s July net gold imports via Hong Kong plunge 45 pct m/mwas the Reuters headline – and the article went on to make the very out-of-date comment that the Hong Kong figures serve as a proxy for total Chinese gold imports, which they have not done for some years now. Judging by known gold export figuresfrom countries which report these it is doubtful whether even half mainland China’s gold imports are routed through Hong Kong nowadays. The greater part now comes in via Beijing and Shanghai and perhaps other ports of entry.

It is true, though, that perhaps July was a weakish month for Chinese gold demand – but not significantly so as shown in the SGE withdrawal figures above. And, of course, August figures are likely to be much stronger with SGE gold withdrawals that month the highest for 3 years, although still well short of the record 2015 figure when withdrawals from the SGE totalled over 260 tonnes. In August.

Gold imports into China can be somewhat obscure, particularly where they involve the import of gold bearing concentrates for refining from Chinese-owned and other properties which have implemented deals direct with Chinese refiners. The latest of these is probably Polymetals’s big new Kyzyl gold mine in Kazakhstan which has just started up and is shipping its goldconcentrate directly into the Chinese mainland for refining. This is a world class operation and will, on its own, produce around 10 tonnes of gold a year from 2019. While 10 tonnes is not a hugely significant amount of gold in the context of annual Chinese gold imports, it will not show up in easily monitored statistics like those from Switzerland, Hong Kong, the UK, the U.S. and Australia all of which break down their gold exports on a country-by country basis. It is the sum of known gold imports, plus China’s own production (China is comfortably the world’s largest producer of gold) plus an allowance for scrap and imports from unknown sources as being close to the SGE annual withdrawals total which leads us to equate SGE gold withdrawals to Chinese total annual demand which should yet again total over 2,000 tonnes this year.

With the low gold price also seen as boosting demand in India, the world’s second largest gold consumer which, according to GFMS, has just recorded particularly strong gold imports in August – apparently a 15-month high, gold is perhaps performing more strongly than its COMEX- manipulated price might suggest. Hang in there. There should be better times ahead.

https://www.sharpspixley.com/articles/lawrie-williams- chinese-gold-demand-on-the-rise-_282915.html

06 Sep 2018

end

Good reason for the crooks to bash silver; silver demand surges enough to empty the Mint of their 2018 American eagles.

(courtesy Adrian Ash)

Silver Demand Surge empties Mint of 2018 American Eagle Silver Coins

September 7, 2018 |

Silver Demand Surge empties Mint of 2018 American Eagle Silver Coins

The U.S. Mint has temporarily sold out of its 2018 American Eagle Silver Coins and is currently in the process of producing more.

“This is to inform you that due to recent increased demand, the United States Mint has temporarily sold out of its inventories of 2018 American Eagle Silver Bullion Coins,” U.S. Mint said in a press release published on Thursday.

The announcement comes amidst the strongest silver sales from the U.S. Mint since the start of last year. In August, the U.S. Mint sold 1.53 million one-ounce American Eagle Silver coins, up 72% from the previous month.

In contrast, sales of American Eagle Gold coins fell to a four-month low in August, mirroring a decrease in sales from the same period last year.

While silver coins have done much better than gold coins, physical silver continues to lag in price performance. The gold-silver ratio has expanded to 84.75, while silver has fallen to two-year lows.

Peter Hug, director of Global Trading at Kitco, said that the wholesalers responded by raising premiums by as much as 25%.

“We think that the increase is temporary and may mitigate in about two weeks. We mention it for the investors that have grown weary of the silver market. For those that have thrown in the towel and want to exit their silver positions, the upside is that bid premiums have also gone higher,” he said in a commentary Thursday. – David Lin

Silver Demand Surge empties Mint of 2018 American Eagle Silver Coins

The United States Mint notified its authorized purchasers Sept. 6 that the bureau’s inventory of American Eagle silver coins is temporarily exhausted.

Mint spokesman Michael White released the notification memo that was sent to the authorized purchasers:

“This is to inform you that due to recent increased demand, the United States Mint has temporarily sold out of its inventories of 2018 American Eagle Silver Bullion Coins,” the memo reads. “All orders received prior to this communication shall be honored.

“The United States Mint is in the process of producing additional 2018 American Eagle Silver Coins. We will make these coins available for sale shortly.”

https://www.commoditytrademantra.com/silver-trading- news/silver-demand-surge-empties-mint-of-2018-american- eagle-silver-coins/

-END-

____________________________________________________________________________________________________________________________________________________________________________________

Your early FRIDAY morning currency, Asian stock market results,  important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight/9 AM EST

i) Chinese yuan vs USA dollar/CLOSED DOWN TO 6.8425/HUGE DEVALUATION FOR THE PAST FOUR WEEKS RESUMES/CHINESE COMING TO USA FOR TRADE TALKS IN NOVEMBER //OFFSHORE YUAN:  6.8480   /shanghai bourse CLOSED UP 10.71 POINTS OR 0.40% /HANG SANG CLOSED DOWN 1.35 POINTS OR 0.01%
2. Nikkei closed DOWN 180.88 POINTS OR 0.80%/USA: YEN RISES TO 110.84/

3. Europe stocks OPENED DEEPLY IN THE RED 

 

/USA dollar index FALLS TO 94.93/Euro FALLS TO 1.1619

3b Japan 10 year bond yield: REMAINS AT. +.11/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 110.84/ 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:: 67.86  and Brent: 76.67

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

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

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

3h Oil DOWN for WTI and DOWN 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 DOWN to 2.99% /SPAIN 10 YR BOND YIELD DOWN TO 1.44%

3j Greek 10 year bond yield FALLS TO : 4.25

3k Gold at $1201.50 silver at:14.19   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 14 /100 in roubles/dollar) 69.37

3m oil into the 67 dollar handle for WTI and 76 handle for Brent/

3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation. This can spell financial disaster for the rest of the world/

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 110.84DESTROYING 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 0.9659 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1223 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 2.88% early this morning (THIS IS DEADLY TO ALL MARKETS). Thirty year rate at 3.06%

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

6.  TURKISH LIRA:  UP  TO 6.4643

Global Stocks Slide On Tariff, Payrolls Suspense; Dollar

Drops

Profile picture for user Tyler Durden

Global markets slumped in suspense over today’s main events, with S&P 500 futures falling along with European and Asian shares as investors awaited the latest move in the U.S.-China trade war after the comment period deadline passed overnight, even as August payrolls data loomed later on Friday. A weaker dollar helped emerging-market equities snap seven days of declines while EM currencies also rose.

World shares limped toward their worst week in almost six months on Friday, with Asia carving out a 14-month trough as investors braced for a new salvo of Sino-U.S. tariffs. A Thursday slump in U.S. chip stocks and reports that President Trump had also weighed a trade feud with Japan dragged on tech-heavy Asia overnight, while Europe’s main bourses faded after an initial attempt push higher, with the Stoxx 600 index falling to session low, down 0.3% reversing gains of 0.2%, driven lower by banks and as travel stocks declined. The Europe STOXX 600 was set to end the week with a 2.3% loss, its worst weekly performance since the end of March. Emerging market stocks have lost even more, some 3%, while U.S. equity futures pointed to a softer open following a negative session in Asia as equities fell in Japan, South Korea and Australia, while those in China posted gains.

European banks dropped 1% after Dow Jones reported that China asked HNA Group to exit Deutsche Bank, and ING said its license to operate could be threatened because of information technology and working system problems. As a result, the European Bank Index dropped lowest since November 2016.

Core European bonds fell, while Italian bonds gained on optimism the government will stick to European Union budget-deficit rules. In fact, Italian bonds headed for the biggest weekly gain in almost three months after the country’s finance chief reassured investors that this month’s budget won’t breach European Union rules.

Chinese blue chips had managed their 0.5 percent bounce as beaten-down health care stocks found buyers after taking a savaging in recent months amid vaccine scandals. MSCI’s broadest index of Asia-Pacific shares outside Japan had still lost 0.3% though, having earlier reached its lowest since mid-July last year. The Nikkei shed 0.8 percent, undermined by a rising yen and reports U.S. President Donald Trump could be contemplating taking on Japan over trade.

Trader nerves have been frayed further after the public comment period for proposed tariffs on an additional $200 billion worth of Chinese imports passed. The tariffs could now go into effect at any moment, although there was no clear timetable. China has warned of retaliation if Washington launches any new measures. Australia’s dollar, often used in as play on China’s fortunes due to its huge metals exports there, hit a 2-1/2 year low early on it Europe.

“It is all linked to the trade comment period expiring and now we are wondering what the implementation plan is going to be and how China is going to respond,” Saxo Bank’s head of FX strategy John Hardy said. “The Aussie dollar of course is a proxy within G10 for that,” he added, also pointing to shares in mining giants such as BHP trading down near key technical levels.

There was a silver lining after the MSCI Emerging Market Index jumped 0.4%, on course to snap a 7-day losing streak after falling into a bear market earlier in the week. China had closed higher overnight despite the tariff feud and Turkey’s lira and South Africa’s rand and Argentina’s peso all looked relatively calm early on.

Other emerging markets were trying to steady after a punishing week, with Indonesia and the Philippines still badly scarred by fears of capital flight following crises in Argentina and Turkey and the rumbling U.S.-China trade strains.

“It seems unlikely the tariffs are not implemented as the U.S. administration believes that they are winning the trade war and will be in a stronger position to negotiate if they put more pressure on China,” JPMorgan analysts wrote in a note. “The tech sector was also very weak overnight, with a slide in Micron of almost 10 percent and further weakness in the Chinese Internet ADRs.”

Elsewhere in EM, Brazil’s stocks and currency jumped after presidential candidate Jair Bolsonaro was stabbed during a street rally as traders bet that the attack will wind up creating sympathy for the candidate and help propel him into the second round of voting.

The Turkish lira advanced for a third day and Turkish bonds rallied as an emerging-market currency rout showed signs of easing.

With the EM rout fading for now, traders returned to more familiar themes: trade tensions and central banks. The Thursday deadline for public comment on proposed U.S. tariff hikes on an additional $200 billion of Chinese imports came and went without any fresh announcement from Washington. Eyes now turn to the U.S. payrolls report for August which is expected to show a robust rise of 191,000 – in part as July was temporarily depressed by the closure of the Toys R Us chain that month – which investors will watch with particular attention following dovish comments by New York Fed President John Williams on Thursday.

Still, as we noted previously, Goldman analysts cautioned that: “Despite employment indicators pointing to another strong report, it is worth noting that there is a tendency for August payrolls to initially disappoint and then be revised up noticeably later.”

Just as important will be figures on U.S. wages where a rise above the 0.2 percent forecasted would likely boost the dollar and pressure Treasury prices.

The dollar could do with the lift, having lost out to the safe-haven yen and Swiss franc. It was changing hands at 110.70 yen after falling 0.7 percent on Thursday, the sharpest one-day loss in seven weeks. Part of the decline came after a Wall Street Journal columnist reported Trump had mused about starting a trade fight with Japan. The dollar also hit a four-month low on the franc around $0.9645. Against a basket of currencies, the dollar index nudged lower to 94.939 and was heading for a fourth weekly drop.

Elsewhere in G-10 FX, the pound was little changed on the day and headed for its first weekly loss since mid-August. The euro was a shade higher at $1.1645, while sterling idled at $1.2939 amid ongoing uncertainty over Brexit negotiations. The dollar dipped and Treasuries moved lower before the U.S. payroll report on Friday, which will offer clues on the labor market’s health, the state of wage inflation and the pace of future Fed rate hikes.

In commodities, WTI and Brent futures were marginally higher in early European trade thus far with the former hovering around the USD 68/bbl level. According to Reuters trade flow data, US imports of crude oil from Saudi Arabia in August and September are set to reach the highest 2-month level early of 2017, citing the relatively cheap prices as advantageous for US refiners. News flow remains light for the complex, however, next week will see the release of the EIA short-term energy outlook, OPEC’s monthly report and IEA’s oil market report. Elsewhere, spot gold trades flat as the yellow metal flirts with the USD 1200/oz level ahead of the release of key US jobs data later, while copper underperforms amid ongoing trade-related concerns.

Market Snapshot

  • S&P 500 futures down 0.08% to 2,876.75
  • STOXX Europe 600 down 0.1% to 373.05
  • MXAP down 0.2% to 160.23
  • MXAPJ down 0.2% to 515.81
  • Nikkei down 0.8% to 22,307.06
  • Topix down 0.5% to 1,684.31
  • Hang Seng Index down 0.01% to 26,973.47
  • Shanghai Composite up 0.4% to 2,702.30
  • Sensex up 0.2% to 38,302.99
  • Australia S&P/ASX 200 down 0.3% to 6,143.81
  • Kospi down 0.3% to 2,281.58
  • Brent Futures up 0.2% to $76.68/bbl
  • Gold spot up 0.1% to $1,201.26
  • U.S. Dollar Index down 0.1% to 94.91
  • German 10Y yield rose 0.8 bps to 0.363%
  • Euro up 0.2% to $1.1645
  • Brent Futures up 0.2% to $76.68/bbl
  • Italian 10Y yield rose 2.9 bps to 2.694%
  • Spanish 10Y yield fell 0.7 bps to 1.442%

Top Headline News from Bloomberg

  • President Trump described his good relations with Japanese leadership in a Thursday phone call but added “of course that will end as soon as I tell them how much they have to pay,” according to an opinion piece from Wall Street Journal’s James Freeman, who added that it seems that Trump is still bothered by the terms of U.S. trade with Japan
  • Some of America’s most prominent technology companies and retailers made a last-minute push to convince President Donald Trump to reverse course on a plan to impose tariffs on $200 billion in Chinese imports
  • The Federal Reserve shouldn’t hesitate to invert the yield curve if raising short-term interest rates above long-term yields becomes necessary to achieve the U.S. central bank’s targets, New York Fed President John Williams said
  • President Donald Trump said he’d like to shut down the U.S. government to try to force congressional Democrats to fund a wall along the Mexican border, but likely won’t do it before the midterm elections
  • Mario Draghi will only just manage to raise the European Central Bank’s interest rates before his term as president ends in October 2019 amid continued risks from U.S. tariffs and Italian politics, according to a Bloomberg survey of economists
  • Nafta talks between the U.S. and Canada have seemed upbeat, but are not expected to lead to a deal this week, a Canadian government official said, speaking on condition of anonymity
  • Germany’s industry is experiencing further signs of strain amid trade tensions between the U.S. and the European Union, with production unexpectedly declining for a second consecutive month
  • Euro-area GDP increased 0.4 percent in the second quarter, matching an earlier estimate
  • Sweden’s two traditional political blocs are running neck-and-neck ahead of Sunday’s election, with neither close to a majority amid growing support for the nationalist Sweden Democrats
  • French President Emmanuel Macron is preparing for a showdown between supporters of liberal values and proponents of nationalism as he bids to rally support ahead of European elections in May

Asia equity markets traded negative following a lacklustre lead from the US where continued weakness in tech and underperformance in energy dragged most US majors lower, while upcoming NFP jobs data and trade-related concerns added to the tentative tone. ASX 200 (-0.6%) and Nikkei 225 (-0.9%) were lower with nearly all sectors in Australia in the red and energy among the worst hit following the recent pullback in crude, while Tokyo stocks underperformed on a firmer currency and after US President Trump hinted that Japan could be next on the agenda. Conversely, Hang Seng (-0.9%) and Shanghai Comp. (-0.1%) initially outperformed despite the potential escalation in the trade dispute with the consultation period for the proposed tariffs on USD 200bln of Chinese imports now expired. Furthermore, China had declared it would retaliate against fresh tariffs and plans to take necessary countermeasures to support its companies, while the PBoC were also active today and injected CNY 176.5bln through its 1yr MLF. Chinese stocks then deteriorated heading into the tariff deadline to conform to the overall risk-averse tone and amid increases in money market rates which saw the Hong Kong overnight CNH HIBOR hit its highest level since late June. Finally, 10yr JGBs were marginally higher as they tracked the prior session’s gains in T-notes and with support seen amid the risk averse sentiment in the region, while today’s enhanced liquidity auction for 2yr-20yr JGBs also saw improved results across all metrics.

Top Asia News

  • Philippine Central Bank Pledges ‘Strong’ Action on Inflation
  • Hong Kong, China Stocks Wobble as U.S. Tariff Consultations End
  • China End-Aug. Forex Reserves at $3.1097T; Est. $3.115T
  • Deutsche Bank Top Holder HNA Is Said to Plan Exiting Its Stake

European equities trade slightly softer (Eurostoxx 50 -0.4%) following a negative read from Asia with sentiment dampened on trade concerns and ahead of the upcoming NFP data, while UK’s FTSE 100 is pressured by miners on the back of softer base metal prices. Sector wise, telecom names outperform as French listed Iliad (+5.7%) shares jumped higher on rumours of going private. The company decline to comment.. In stock specific news, IAG (-2.9%) is under the hammer after subsidiary BA said at least 380,000 customers credit card details have been compromised in a data theft.

Top European News

  • Europe’s Stocks Finally Get Some Love With 1st Inflows in 26 Wks
  • Iliad Shares Soar as Oddo Says Buyout Scenario Is Credible
  • Steve Bannon’s Favorite Swedish Party Is Set to Upend Status Quo
  • How Did Russia’s Gas Giant Get Beaten by Its Smaller Rival?

In FX, AUD was the marked G10 underperformer and main victim of ‘pending’ $200 bn Chinese import tariffs by the US, alongside the threat that President Trump turns his trade offensive towards Japan next. Having failed yet again to clearly overcome resistance around 0.7200 vs the Usd, reported bids from exporters and short covering or profit taking demand at 0.7150 has been severely tested and briefly breached before a relatively firm bounce, albeit amidst broader Greenback weakness, as the Aud continues to lose ground against its NZD antipodean peer with the cross down under 1.0900 – Kiwi holding towards the upper end of a 0.6560-95 range vs the Usd and not really reacting to comments from RBNZ Governor Orr last night. EUR – Conversely, the single currency is the major front-runner vs the Dollar and overcame a post-German data wobble in early EU trade to test offers around 1.1650, with some technical impetus derived as the headline pair held just above the 100 HMA (1.1607). Note also, more decent option expiry interest in the mix with 1 bn running off between 1.1635-50 at the NY cut. CAD/CHF/JPY – All pretty flat against the Usd, but retaining the bulk of gains made on Wednesday as the Loonie benefited from positive NAFTA talk via the US President and reaffirmation of gradual rate hike guidance by BoC’s Wilkins. Usd/Cad currently circa 1.3130 and awaiting Canadian jobs data alongside US NFP. The Franc is also on the firmer side of recent ranges around 0.9650 and its safe-haven counterpart, Jpy trades around a new pivot of 110.50 and bang in the middle of 1 bn option expiries at the 110.00 and 111.00 strikes. EM – So far so good, as regional currencies continue their comeback, led by the Try that has extended its rebound on renewed CBRT tightening expectations, with the Lira now over 6.5000 again vs the Usd. Similarly, the Rouble has been boosted by signals from the Central Bank that a rate hike could well be in the offing next Friday (just a day after the CBRT policy meeting) and Usd/Rub is back below 69.0000 in response, while Usd/Zar has retreated further towards 15.0000.

In commodities, WTI and Brent futures are marginally higher in early European trade thus far with the former hovering around the USD 68/bbl level. According to Reuters trade flow data, US imports of crude oil from Saudi Arabia in August and September are set to reach the highest 2-month level early of 2017, citing the relatively cheap prices as advantageous for US refiners. News flow remains light for the complex, however, next week will see the release of the EIA short-term energy outlook, OPEC’s monthly report and IEA’s oil market report. Elsewhere, spot gold trades flat as the yellow metal flirts with the USD 1200/oz level ahead of the release of key US jobs data later, while copper underperforms amid ongoing trade-related concerns.

US Event Calendar

  • 8:30am: Change in Nonfarm Payrolls, est. 191,000, prior 157,000
  • 8:30am: Unemployment Rate, est. 3.8%, prior 3.9%
  • 8:30am: Underemployment Rate, prior 7.5%
  • 8:30am: Average Hourly Earnings MoM, est. 0.2%, prior 0.3%; Average Hourly Earnings YoY, est. 2.7%, prior 2.7%
  • 8:30am: Average Weekly Hours All Employees, est. 34.5, prior 34.5
  • 8:30am: Labor Force Participation Rate, prior 62.9%

DB’s Jim Reid concludes the overnight wrap

So a week to go until the 10-year anniversary of the Lehman default weekend. Of more immediate interest is that today we welcome in another payrolls Friday. They’ve generally been a bit dull over the last 7 months after the excitement of the average hourly earnings (AHE) spike in the release from the first week of February. As you’ll no doubt remember this caused unparalleled chaos in volatility markets. Since then, this number has been relatively well behaved. For today, DB are a tenth above consensus for AHE at +0.3% mom which, if correct, would equal the post-crisis yoy high of +2.8%. We should continue to keep a very close eye on this number as when the labour market is as tight as it is, the risks are virtually all on the upside for wages. Beware of the seasonality that often makes August’s payroll number weaker than expected. This is why unemployment and AHE will likely be more instructive today. The full preview is at the end.

So as we approach the end of the first week of September it’s been one where the negativity baton has been passed from EM to US tech. Indeed, the big mover yesterday was the NASDAQ again which tumbled -0.91% and so takes the three-day loss to -2.30% this week. The NYSE FANG index was also down -1.65% which means the -5.37% sell-off in the three days this week is now the biggest three-day move since the big selloff at the end of July. A not-so insignificant $158bn of value has also been wiped from that index over the last three days.

Anyway, the moves also weighed on the S&P 500 (-0.37%), while the DOW ended up bucking the trend to close +0.08%. The recent weakness is clearly being driven largely by tech given the outperformance for the other bourses. That said the VIX did rise above 15 intra-day for only the second time over the last two months (close 14.65). Here in Europe, the STOXX 600 (-0.59%) closed lower for the third session in a row. The FTSE MIB (-0.27%), despite finishing lower, continues to outperform much of Europe this week; it is now up +1.27% on the week compared to the STOXX 600’s -2.35% drop. Bond markets were generally a sideshow, with yields a couple of basis points lower for Treasuries and Bunds. EM FX meanwhile ended last night a rather modest +0.16% and in the grand scheme of things has had two days of fairly stable moves (although equities have been a lot weaker). Indeed the Argentine Peso (+2.84%) and Turkish Lira (+0.28%) both strengthened for the second day in a row while even the South African Rand (+0.58%) was stronger. In fact, there’s only been 2 other days since the start of August that those three currencies have all finished the same day stronger. The Russian Ruble fell -1.43% after Prime Minister Medvedev said he hopes the Bank of Russia takes an “active position” to address high interest rates. The new head of the Bank of Russia’s monetary-policy department, Alexey Zabotkin, issued similar comments by saying that financial conditions are already tightening, and that this will be part of the discussion around any future rate moves. Sentiment was not helped by the UK and allies’ joint statement formally accusing Russia of using the nerve agent Novichok on British soil.

Overnight the generally risk off tone has continued into Asia once again. Japan is leading the way in terms of underperformance (Nikkei -1.18%) not helped by a WSJ article which came out late last night suggesting that President Trump may turn his focus on trade tariffs over to Japan. Elsewhere the Hang Seng (-0.86%), Shanghai Comp (-0.13%), Kospi (-0.62%) and ASX (-0.63%) are also lower capping a tough week for the region. Coming back to trade there hasn’t been any news overnight post the deadline passing for the public comment period although there is a story on Bloomberg suggesting that some of the big US tech companies have made a big pushback to the proposed $200bn of tariffs on China. So we’ll see what today brings. NAFTA could also be in the spotlight after Canada’s Foreign Minister Chrystia Freeland said that a deal is unlikely this week but talks remain upbeat.

Coming back to yesterday which was a busy day for data but there were a couple of prints which stood out in the US. The first was the latest weekly initial jobless claims reading which at 203k (vs. 213k expected) marked a new cycle low and in fact the lowest since 1969. The second was the August ISM nonmanufacturing reading which backed up the manufacturing print earlier in the week by coming in at a much stronger than expected 58.5 (vs. 56.8 expected) – a jump of 2.8pts from July and so reversing much of the sharp decline that month. The details showed that the majority of significant components rose too, with the exception of prices. So further evidence that GDP growth isn’t showing signs of abating just yet.

In Europe, German manufacturing orders fell -0.9% in July, a big miss versus the expected +1.8% expansion. The fall was mostly attributable to a big drop in external orders from outside the Eurozone, suggesting some potential softening in external demand. Risks around Italy, trade, and EMs may also be contributing to uncertainty and may be weighing on business spending plans. In Switzerland, second quarter GDP printed at a very robust +3.4% yoy, exceeding expectations for +2.4%. This represents the strongest pace of growth since 2010, and the Swiss Franc rallied +0.75% versus the Euro to its strongest level in over a year. Apart from data, focus yesterday was on a speech by new NY Fed President John Williams (formerly of the San Francisco Fed). He broadly confirmed the house view for Fed policy and the economy. He downplayed the relevance of a flattening or inverted yield curve as a recession signal, assuming other asset prices maintain their positive signals. He described the outlook as “a bit of a Goldilocks economy from a policy maker point of view” and said that “we don’t feel the need to raise interest rates more quickly.” This supports DB’s expectations for two more rate hikes this year and four more in 2019. Williams also downplayed the risks to the US economy from stresses in emerging markets, “but we need to be on top of that.” Separately, Chicago Fed President Evans repeated his hawkish view that rates should proceed to neutral, or even a bit further. This is a big change from an FOMC member who used to be among the most dovish, but didn’t move markets. Separately, the Canadian dollar appreciated as much as +0.52% versus the US dollar after Deputy Governor Wilkins said that the Bank of Canada considered dropping their commitment to a “gradual approach” to rate hikes, which could signal a potential acceleration in the pace of hikes beyond the currently-discounted path of one per quarter. Food for thought internationally.

As for what to look forward to today the aforementioned US employment report dominates the agenda. Consensus is for a 191k payrolls reading which follows a much softer than expected 157k last month. Our US economists are slightly more cautious and have pegged a 185k forecast which is more conservative than their models imply largely because payrolls have missed consensus in the month of August for seven consecutive years which is a fairly telling stat. Indeed the average miss is 46k in the last seven Augusts. To be fair that probably dampens the importance of today’s data but the earnings numbers will still be a big focus.

The market is expecting a +0.2% mom average hourly earnings number which should be enough to keep the annual rate at +2.7% yoy. As mentioned earlier our economists actually expect a slightly stronger +0.3% earnings print which would push the annual rate up a tenth to +2.8% and just slightly behind September 2017’s hurricane-distorted post-recession high. Meanwhile our colleagues expect the unemployment rate to hold steady at 3.9% although the market expects a one-tenth fall to 3.8%.

Elsewhere, shortly after this hits your screens we’ll get July trade and industrial production data out of Germany followed shortly by the same in France. A couple of hours later we then get the final Q2 GDP revisions for the Euro area although the market isn’t expecting any changes from the +0.4% qoq advanced estimate. In the US all eyes will be on the aforementioned  August employment report while at some stage today we’ll also get August foreign reserves data out of  China. Meanwhile it’s a busy day for Fedspeak with Rosengren, Mester and Kaplan all on the cards. It’s worth noting that an informal meeting of EU economic and financial affairs ministers will also kick off today and continue into Saturday.

 

 

3. ASIAN AFFAIRS

i) FRIDAY MORNING/ THURSDAY NIGHT: Shanghai closed UP 10.71 POINTS OR 0.40%   /Hang Sang CLOSED DOWN 1.35 POINTS OR 0.01%/   / The Nikkei closed DOWN 180.88 POINTS OR 0.80%/Australia’s all ordinaires CLOSED DOWN 0.25%  /Chinese yuan (ONSHORE) closed DOWN  at 6.8425 AS POBC RESUMES SLIGHTLY ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER/Oil DOWN to 67.86 dollars per barrel for WTI and 76.67 for Brent. Stocks in Europe OPENED RED //.  ONSHORE YUAN CLOSED DOWN AT 6.8425 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8480: HUGE DEVALUATION/PAST SEVERAL DAYS RESUMES// TRADE TALKS NOT DOING TOO GOOD   : /ONSHORE YUAN TRADING  STRONGER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING  WEAKER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

3 a NORTH KOREA/USA

 

North Korea/South Korea/USA/China

3 b JAPAN AFFAIRS

 
END

3C CHINA

China intercepts a British warship in the Parcel Islands, in international waters as they claim expanded territorial rights.  The uSA is not amused

(courtesy zerohedge)

China Sought To Intercept British Warship, Claiming Expanded Territorial Waters

In but the latest incident among a growing list that point to China’s expanding claims on the South China Sea, a British naval ship carrying Royal Marines had a confrontation with Chinese military vessels as it reportedly traveled through international waters.

The incident took place near the Chinese-controlled Paracel Islands in South China Sea, and while the UK claims its ship stayed only in recognized international waters, China’s foreign ministry is disputing that claim, calling the British navy’s actions a “provocation”.

HMS Albion, via UK Defence Journal 

Reuters reports of the disputed incident:

The HMS Albion, a 22,000 ton amphibious warship carrying a contingent of Royal Marines, exercised its “freedom of navigation” rights as it passed near the Paracel Islands, two sources, who were familiar with the matter but who asked not to be identified, told Reuters.

The vessel was traveling to Ho Chi Minh City, where it safely docked after the encounter which according to a Reuters source involved China deploying “a frigate and two helicopters to challenge the British vessel, but both sides remained calm during the encounter.”

The Paracel Islands are hotly disputed territory, and though occupied entirely by China are also claimed by Vietnam and Taiwan, the British vessel may have entered to within twelve nautical miles of the Paracels, which is the internationally recognized territorial boundary demarcating where sovereign waters extend.

Britain may have been testing China’s resolve regarding its recent claims to the Paracels.

Two major flashpoint areas in the South China Sea: the Paracel and Sratly islands. 

The incident took place on August 31, but has only now been revealed. China’s Foreign Ministry describes it as an act of aggression with no forewarning or permission to enter what it claims is its territorial waters. China’s foreign ministry described in a statement:

The relevant actions by the British ship violated Chinese law and relevant international law, and infringed on China’s sovereignty. China strongly opposes this and has lodged stern representations with the British side to express strong dissatisfaction.

“China strongly urges the British side to immediately stop such provocative actions, to avoid harming the broader picture of bilateral relations and regional peace and stability,” the statement continued. “China will continue to take all necessary measures to defend its sovereignty and security.”

A spokesman for the Royal Navy negated the claim, and responded with: “HMS Albion exercised her rights for freedom of navigation in full compliance with international law and norms.”

Current Britain-China relations have been described as “delicate” of late given London’s seeking a post-Brexit free trade deal from Beijing, which has suggested what’s being hailed as a potential future “golden era” in ties.

In previous years multiple reports have documented an extensive Chinese military build-up in the Parcel Islands, including the deployment of Russian-made surface-to-air missiles, which China’s Defense Ministry long ago confirmed, saying it’s lawful for China “to deploy defense facilities within its territory, and the facilities have existed for years.”

The area is coveted for its potential oil and gas resources, and China’s heavy deployment and defense of the region has increased tensions among territorial claimants.

This latest incident follows a string of similar encounters throughout the summer involving various international vessels and aircraft, including a last August incident where a US Navy plane flying 16,500 feet over the South China Sea was unexpectedly contacted by the Chinese and warned to “Leave immediately and keep out to avoid any misunderstanding”.

 

Beijing has laid down an extensive claim in what the rest of the world considers open international waters. China’s so called “nine-dash line” encircles as much as 90 percent of the contested waters in the South China Sea, and runs up to 2,000 kilometers from the Chinese mainland and within a few hundred kilometers of Malaysia, Vietnam, and the Philippines — all within this vaguely defined zone Beijing claims as within its “historical maritime rights”.

The UN estimates that one-third of global shipping passes through the expansive area claimed by China — and crucially there’s thought to exist significant untapped oil and natural gas reserves in region. 

Despite many Chinese warnings threatening the US, UK, and Australian vessels of late, which also involves aggressive encounters with the Philipines’ armed forcies, Washington and London have made it clear that they will maintain and increase an active presence in the region.

end

And now the shocker: after just initiating another 200 billion dollars worth of tariffs on China, Trump states that he will impose another $267 billion in additional tariffs.  That cut the market totally by surprise as the Dow plummeted and the dollar rose  (CNY plummets). Will China devalue the yuan to 7 to one and set off a contagion like never before.

(courtesy zerohedge)

 

Stocks Plunge On Trump Shocker: Threatens China With Another $267BN In Tariffs

The Friday moment everyone has been waiting for, namely whether or not Trump would greenlight the next $200BN in China tariffs now that the comment period is over. Moments ago we got the answer when Trump, speaking to reporters on board of Air Force 1, just said that he is ready to impose another $267BN in China tariffs in addition to the $200 billion proposed that his administration is putting the final touches on.  From Bloomberg:

  • TRUMP: ANOTHER $267B CHINA TARIFFS READY TO GO, ADDED TO $200B
  • TRUMP: EXTRA $267B CHINA TARIFFS COULD BE READY ON SHORT NOTICE

This would mean that Trump would be taxing a grand total of $517BN in Chinese exports ($50BN + $200BN +$267BN)Putting China’s trade surplus with the US in context, it was $375BN in 2018. It was not clear what tariff rate Trump had in mind for either the new $267BN or existing $200BN in tariffs.

The news comes one day after the Dept of Commerce announced that the US trade deficit with China hit an all time high $36.9 billion in July.

Meanwhile, in terms of actionable developments, there were none, because for all those expecting Trump to launch the $200BN in 2nd round tariffs today, Trump suggested that nothing is imminent:

  • TRUMP ON $200B TARIFFS: COULD BE SOON DEPENDING ON WHAT HAPPENS

The latest salvo from Trump in the trade war rattled U.S. stocks a day after top American executives made a last-minute push to convince the president to not impose fresh tariffs. Instead, Trump Friday signaled he’s ready to target a sum of goods equal to virtually all imports from China. The tariff drama overshadowed an August jobs report that showed a healthy labor market with signs of wage inflation that could clear the way for two more rate hikes this year.

The reaction on the market was instant, and the Dow Jones tumbled by 100 points in seconds once the headlines hit. The Dow Jones Industrial Average fell the most as multinationals from Boeing to United Technologies and 3M retreated after Trump unveiled the latest shocker.

Additionally, the dollar spiked to session highs, while over in China, the offshore Yuan tumbled to two-day lows as the worst case outcome from trade wars just got even worse.

The question now is how will China respond to this latest provocation? Clearly, the biggest question is weather the PBOC will once again let the yuan depreciate and let the currency go to 7.00 or beyond.

Commenting on the latest developments, Bong-Seok Choi, director of research at San Francisco-based Wetherby Asset Management, told Bloomberg that “the risks are real and there’s increasing evidence that we’re closer to more of a full blown trade war. The trade wars only serve as a catalyst for the turning of the cycle. Things can change rather quickly, so the trade war, if a lot of the threats do materialize, I think things will turn very quickly.”

end

4.EUROPEAN AFFAIRS

Mainland China orders NHA to sell its entire stake in Deutsche bank and that sends its stock southbound.

(courtesy zerohedge)

Deutsche Bank’s Top Investor Selling Its Entire Stake Under Orders From China

Deutsche Bank stock slumped, and European bank shares dropped to the lowest level since late 2016 after the WSJ reported that Deutsche Bank’s top investor, HNA Group – one of China’s largest conglomerates – intends to completely exit its stake in the German bank as it reverses a debt-fueled acquisition spree under pressure from Beijing.

The extremely levered and cash-strapped Chinese conglomerate, which most recently still held almost 8% of DB’s voting rights, is selling the investment following orders from China that it focus on its core airline business, as what was once the world’s most aggressive rollup and acquiror of international companies goes into reverse. It’s not clear how HNA would sell the stake, which it controls through a series of complex derivatives, according to Bloomberg.

HNA Group, a company which previously was dubbed as systemically important for China’s economy, and an owner of airlines and hotels that amassed more than $40 billion worth of businesses and stakes in companies in an aggressive global acquisition spree from 2015 to 2017, has been dismantling its overseas empire to shrink its balance sheet under renewed pressure from Chinese regulators and its creditors. HNA’s sale of its DB stake had been previously speculated, but never actually confirmed.

The sale will only add to pressure on Deutsche Bank, whose shares have slumped amid several unsuccessful turnaround efforts, and could act as a catalyst amid speculation that it may need to merge with another lender in the long run. As for HNA, the liquidation will mark the unwinding of one of the most high-profile investments made during a multi-year acquisition spree that cost the company tens of billions of dollars.

DB shares fell as much as 2.1%, bringing its 2018 losses to a staggering 40%.

As recently as 2017, HNA held as much as 9.9% of Europe’s largest bank through a combination of outright holdings and options, but it’s been reducing the investment and replacing actual shares with financial instruments. Most of the stake is now controlled through derivatives that limit HNA’s losses.

While HNA had previously said it was committed to the stake, Beijing instructed it to focus on its main business of travel and stop diversifying through acquisitions when China’s top leaders earlier this year agreed to help HNA raise funds, the WSJ reported. This year alone, the company has sold more than $17 billion in assets, including its holdings in Hilton Worldwide Inc.

In addition to its current 7.6% stake in Deutsche Bank, which it plans to gradually dispose of over the next 18 months, HNA also plans to sell assets currently valued at more than $10 billion. They follow announced or completed asset sales totaling roughly $20 billion.

News of HNA’s liquidation pressured not only DBK stock, but the entire European banking sector which has been hit hard by recent global developments, and today traded at a 22 month low, hitting the lowest level since November 2016.

There was some good news for DB investors: it’s not personal. HNA is in also talks to sell California-based technology distributor Ingram Micro, which it bought for $6 billion in 2016—and Zurich cargo handler Swissport International Ltd., WSJ sources said. It also plans to dispose of its stakes in dozens of Chinese banks, trusts and insurance companies.

HNA’s exit would leave a void in Deutsche Bank’s org chart that could attract other strategic buyers, such as Cerberus Capital, which is already a top investor in Deutsche Bank and also holds a large stake in rival Commerzbank AG. That has prompted speculation in the past that it may seek to combine the two.

As for HNA, it remains burdened by one of the largest interest expenses in the world according to Bloomberg. In July, it was roiled by the sudden death of co-Chairman Wang Jian, a tragedy that threw a wrench at its normalization plans as Wang was said to be the mastermind behind the purchase of many of the assets that are now being sold.

To some, HNA’s departure may be a welcome move: the conglomerate has long been a controversial shareholder for the lender. After HNA helped anchor Deutsche Bank’s $8.5 billion capital hike in early 2017, it has since become a source of infighting and uncertainty for the lender’s executives and investors. For most of last year, Deutsche Bank’s then-CEO, John Cryan, refused to meet with HNA, irking Deutsche Bank Chairman Paul Achleitner, who had courted the Chinese investor. Cryan viewed the structure of HNA’s investment in Deutsche Bank as speculative and risky for other investors.

Cryan did eventually meet HNA Chief Executive Adam Tan in November 2017. Just a few months later, Cryan was ousted as Deutsche Bank CEO

end

This could present many problems.  Danish owned Danske bank in Estonia laundered an astonishing 150 billion dollars as a criminal investigation has been launched.  This comes 6 months after neighbour Latvian bank ABLV was also caught dealing in bribery and money laundering

(courtesy zerohedge)

“It’s Bigger Than We Thought” – Danske Bank Money-Laundering Case Involved Staggering $150 Billion

Roughly six months after Latvia’s third-largest lender, ABLV, was thrust into insolvency following shocking allegations of bribery and money laundering, a similar story is playing out in neighboring Estonia, where the local branch of Danske Banke on Friday revealed that a suspected money laundering scheme is much more serious than investigators had previously realized.

Call it the local Wells Fargo: while initial reports that billions of dollars of illicit funds from shadowy sources in the former Soviet Union had flowed through the branch were largely ignored by the markets, the Wall Street Journal sent shares of Danske bank spiraling lower when it reported that as much as $150 billion was laundered through the bank between 2007 and 2015 – a staggering amount that dwarfs the size of the entire Estonian banking industry. Initial reports from earlier in the year had the suspected illicit funds at $8 billion.

Danske

Danske’s loss, along with discouraging reports involving ING (where an internal warning reportedly said its license to operate could be threatened) and the imminent departure of Deutsche Bank’s top shareholder, drove European banks to their lowest level since November 2016.

Banks

While Danske is facing investigations by Danish and Estonian authorities, larger European regulators like the FCA have so far declined to get involved, which is perhaps fortunate for the bank’s shareholders. However, the staggering size of the fraud virtually guarantees future action as regulators look to plug what appears to be a gaping hole in the European financial system’s regulatory purview.

Danske’s Estonian branch is the subject of criminal investigations in Denmark and Estonia, prosecutors in the countries said. The Danish Financial Supervisory Authority reprimanded the bank for weak controls in May and ordered Danske to hold about $800 million more in capital, but didn’t issue a fine.

The problems at Danske highlight the growing concern among authorities about how illicit money flows—especially from Russia—are channeled through European-regulated banks to the West.

Shell companies, including many registered in the U.K., controlled most of the accounts in question, and many of the accounts had links to people in Russia and former Soviet Union countries, people familiar with the matter said. The U.K.’s Financial Conduct Authority isn’t probing the bank, according to a person familiar with the matter.

What’s worse, Danske’s leaders resisted doing anything about the suspicious activity until they were forced to when a correspondent bank suddenly refused to do business with their Estonian branch.

At Danske, clients would typically move funds among several companies with accounts at its Estonia branch before transferring the money to accounts in banks in Turkey, Hong Kong, Latvia, the U.K. and other countries, one of the people familiar with the investigation said.

Danske’s management dragged its feet dealing with the issue, according to a report filed by Danish regulators this year, ignoring complaints from correspondent banks and internal whistleblowers. Estonian regulators complained to Danish counterparts as early as 2012 and compiled a 200 page report in 2014 detailing the local branch’s extensive failures to obtain even basic information about the source of its clients’ income.

“There were many red flags,” said Kilvar Kessler, chairman of the management board of the Estonia’s banking supervisor, the Finantsinspektsioon.

It was only after another bank refused to deal with Danske’s Estonian unit that the bank shut down “non resident” Estonian accounts in 2015.

Danske’s CEO was involved in oversight of the Estonian branch and apparently was complicit in the cover-up…which seems to cut against the bank’s claims that the branch operated as an “independent unit”.

Danske Chief Executive Thomas Borgen was in charge of international banking—including in Estonia—during part of the period under investigation. He was promoted to run the bank in 2013. He declined to comment.

[…]

Such large sums were able to slip by European regulators’ watch for years largely because of a series of design flaws in the Continent’s anti-money-laundering systems, said James Oates, the founder of Cicero Capital, a financial adviser in the Estonian capital of Tallinn.

“Everybody was looking the other way because they thought they were covered, and it turns out they weren’t,” said Mr. Oates.

Danske Bank’s Estonia branch isn’t directly supervised by the European Central Bank, which in any case lacks the authority to investigate money-laundering cases. Estonian authorities, meanwhile, say that because Danske operated as a branch—and not a subsidiary with a legal entity based in Estonia—they had limited authority and incomplete information.

Parent bank Danske said in a September 2017 statement that the Estonia branch “operated very much as an independent unit, with its own systems, procedures and culture regarding anti-money-laundering measures.”

And in what can only be described as a profound understatement, Danske Bank Chairman Ole Andersen said in a statement that issues with the bank’s Estonian order book were bigger than the bank realized.

“Any conclusions should be drawn on the basis of verified facts and not fragmented pieces of information taken out of context,” Danske Bank Chairman Ole Andersen said in a statement.“As we have previously communicated, it is clear that the issues related to the portfolio were bigger than we had previously anticipated.” The bank says the results of its probe are being finalized.

Given the scope of the fraud, we imagine this isn’t the last we’ll hear about it in the coming days and weeks; we also imagine that many Russian oligarchs are having sleepless nights as Europe’s noose on their offshore funds is closing slowly but surely.

end

An excellent paper from Michael Harnett of Bank of America. In 1998 we had contagion but the stimulus to that contagion was the piercing of the bubble in Japan.  That set of Japan into a two decade period of deflation. The contagion of 2018 is missing one ingredient…what will be the big piercing of a bubble.  His answer:  Europe with it’s huge debt and now the ECB willing to stop the purchase of sovereign bonds from which those in the southern half of Europe will certainly fell the pain

(courtesy zerohedge)

BofA: This Is A Redux Of The 1998 Crisis…. Just One Thing Is Missing

Last weekend we highlighted the most stunning divergence observed since the great financial crisis: non-US equity markets have underperformed the US the most over a 3-month period since the failure of Lehman, a divergence which Bank of America said  “is reaching levels normally only exceeded in bear markets.”

This divergence, which has been observed across many other asset classes including commodities, Chinese stocks, European banks and others which have recently entered (and in many cases remained) in so-called “rolling bear markets”, is highlighted in the latest note by BofA’s Michael Hartnett who writes that global stocks ex US tech are now down -6.2% YTD, while no less than 809 of 1150 EM stocks have entered a bear market.

But it’s not stocks that BofA is worried about, it’s bonds, and specifically US investment grade BBB bonds which are annualizing a 3.2% loss (2nd worst since 1988), and which to Hartnett is the true “canary.”

And if the “canary” is indeed singing – if remains ignored by US stock markets – there is one reason, and it’s very simple: according to Hartnett one should “Buy when the central banks buy, sell when…”

Indeed, so far the tailwind from global QE is still here, and has resulted in record global EPS, 4% US GDP, $1.5tn US tax cuts, $1tn stock buybacks… yet poor 2018 returns.

The reason is a familiar one: the liquidity supernova is going into reverse, i.e., the “end of excess liquidity:”

End of excess returns: CB’s bought $1.6tn assets in 2016, $2.3tn 2017, $0.3tn 2018, will sell $0.2tn in 2019; liquidity growth turns negative in Jan’19 for 1st time since GFC.

Which brings us back to the topic of rolling bear markets, or as Hartnett dubs it: “Bitcoin to Popcoin”, or a world in which the bursting of the Bitcoin bubble may have been the first domino:

XBT 1st FX crash of 2018…TRY, VEF, ARS, IDR, BRL, ZAR…Great EM Currency Crash of 2018 (Chart 6) to revive EM in 2019, but autumn risk is EM contagion via FX, spreads & EPS to Europe and finally US.

BofA once again reminds us of its favorite crisis indicator: the collapse of the Brazilian Real, writing that the Euro is at highs vs BRL, which “historically coincides with financial event (Chart 1).”

And while the divergence observed between the US and the rest of the world may appear unique, it has happened on various occasions in the past, most notably in 1998.

Which brings the next question: Is the current market a redux of 1998? To Hartnett the answer is yes for the following reasons:

  • Fed tightening,
  • US decoupling,
  • flattening yield curve,
  • collapsing EM,
  • underperforming levered quant strategies

All of these echo ’98; but one thing is missing: global contagion.

For those who may not remember – or have been born – back in 1998 it was Japan that spread Asian crisis in ’98 (China):

Fast forward 20 years when the BofA CIO believes that this time Europe will be the epicenter of the 2018 global contagion, with the collapse in foreign orders of German capital goods -12% past 7 months – a harbinger of what is coming.

And if the foreign orders from Germany is the “canary”, BofA predicts that a volatile autumn surge in the Euro – as EU investors repatriate – would “indicate EM morphing into global  deleveraging event.

And if Euro repatriation in Europe is the 1st vector of contagion, BofA predicts that the second, and far more obvious one, is simply debt, or Credit contagion:

Credit spread widening the 2nd vector of contagion:

watch credit spreads in excessively indebted Europe (credit/GDP  258%), China (credit/GDP 256% = record), EM (record credit/GDP 194%), US IG BBB ($4.93tn outstanding, up from $1.08tn ’08).”

In conclusion, Hartnett asks rhetorically if there has “ever been an investment acronym that didn’t end in a bubble” and notes that 4 of 8 FAANG+BAT stocks are now in bear market territory. This will also point the way to the end of the upcoming global contagion which “ends with investors selling what they own & love (see tech flows below), jump in systemic risk & the Fed blinking.”

end

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

Iraq/USA

Last night the Green zone was under attack when at least 3 mortars struck near the USA embassy gate in the heart of the Iraqi capital.

(courtesy zerohedge)

US Embassy In Baghdad’s Green Zone Under Attack

It appears that a new sectarian civil war is beginning to erupt in Iraq during a sensitive government transition phase, and the United States and its local allied forces in the Baghdad government are targets.

According to early breaking reports tonight at least three mortars have struck near the US embassy’s gate in the protected ‘green zone’ at the heart of the Iraqi capital.

Early unconfirmed photographs and local statements indicate a sizable fire may have broken out as a result of the mortars, which may have totaled at four.

Unconfirmed photo of tonight’s attack circulating on Iraqi social media. 

Though there’s currently no reports of injuries or significant damage to the embassy, Western journalists on the ground say the American facility and grounds appear to have been specifically targeted by Iran-backed Shia militias.

انتفاض قنبر E Qanbar@eqanbar

Video attack on in our sources confirm by backed

And elsewhere in Basra, to the south, there are reports that Iran’s consulate is under siege and further that more than a dozen local Shia militia HQ offices have been torched.

In Baghdad, regional sources indicate loud sirens are blaring at the American embassy in the aftermath of the attack.

Michael P Pregent@MPPregent

Early reports: Point of Origin for mortar attacks on US Embassy is Ziyouna neighborhood in Baghdad – AAH controlled area.

Tonight’s targeted attack comes two days after ten pro-Iran Shia militias in the country published a statement vowing to expel foreign troops and advisers by force if they didn’t immediately leave Iraq.

“We will deal with them [foreign troops in Iraq] as occupying forces, and we will use our legitimate rights by employing all possible means to force them out of the country,” the Iraqi factions warned, adding that foreign troops were “in their sights”.

The Tuesday statement further declared there was an “Anglo-American-led dirty and dangerous conspiracy to impose a devilish coalition” on the people of Iraq which seeks to weaken the government and make Baghdad a puppet of Brett McGurk, who is the White House appointed special envoy for the anti-ISIL coalition.

Nafiseh Kohnavard

@nafisehkBBC

What’s happening in tonight :
-3 mortars have landed near the US embassy’s gate in green zone ,no major damage.
-Unconfirmed news about Iran’s consulate being under siege by the protesters in
-About 13 Shia forces’ HQs were set on fire in Basra

Currently a tense tug-of-war is underway as the United States and Iran struggle to influence the formation of the next national government in Baghdad.

Elsewhere in Iraq popular protests and riots are springing up in response to lack of basic services like electricity and clean water.

Babak Taghvaee@BabakTaghvaee

: Just 30 minutes ago hundreds of people of who have armed themselves with sticks, batons & small weapons announced that they are going to attack |ian consulate in & will set it on fire. Mortar attack at ‘s Green Zone might be related.

Over the past days Iraqi Prime Minister Haider Abadi has further stirred tensions by sacking key government ministers — a move interpreted by many as sectarian driven.

Abdulla Hawez

@abdullahawez

All major governmental buildings set on fire by protesters in ‘s Basra; protesters have also set fire on offices of Badr, Asai’b Ahl al-Hak, Nujaba’a, Dawa party, state of law office, Hizbollah & other political party offices.

Meanwhile the Sunni-dominant southern city of Basra is now in the midst of a full sectarian civil war, as multiple buildings of Shia parties and militias have been torched over the past twenty-four hours.

Blesa Shaways@Bilesa_Shaweys


Three protesters have been killed in , now the army militants and commanders are fleeing the city and running toward .

It will be interesting to see the White House and Pentagon’s response to the currently crumbling security situation.

The rapidly unfolding crisis this week could result in the US boosting its troop and security presence at key coalition posts in the country, or potentially begin withdrawal of non-essential personnel.

Inside the Green Zone, file photo via CNN
US Embassy building, part of the sprawling complex inside the Green Zone

Developing… 

END

The Sunni denominated Basra witnesses the storming of the Iranian embassy in the oil rich area.  This follows shia forces shelling the Green zone inside the capital of Baghdad

 

(courtesy zerohedge)

 

Protesters Storm And Torch Iranian Consulate In Iraq’s

Basra

On Thursday eveningIran’s consulate in Basra was placed under siege by a throng of demonstrators after a 24-hour period in which a dozen local Shia militia HQ offices and buildings were torched across the city. Mass protests and riots have grown in the city since Monday.

The same night in Baghdad, regional sources indicate at least three mortars targeted the US embassy in Baghdad’s protected ‘green zone’ landing near the gate but not causing significant damage. The events were part of a worsening sectarian crisis across the country in which pro-Iran Shia forces have vowed to expel “foreign occupying forces” — however in the Sunni-majority southern city of Basra, Sunni groups have been engaged in mob reprisal attacks. 

Moments ago as evening descends on Iraq, Al Arabiyaand other regional sources report a large group of demonstrators have now stormed the Iranian consulate at the end of Thursday overnight and daylong Friday protests

A government building in Basra goes down in flames as demonstrators riot against the government and the lack of basic services in Basra on September 6, 2018. Via AFP

Reuters confirms the consulate was overtaken by the mob near dusk local time: “The consulate is in the upscale neighborhood of al-Barda’iya, southeast of the city center,” according to early reporting.

الأكثر مشاهدة@TopSaudiNews2

متظاهرو العراقية يهتفون أمام القنصلية الإيرانية : “ برا برا والبصرة حرة حرة”

Early unconfirmed video circulating among regional sources show that the consulate is on fire.

The below are the first unconfirmed photos of the burning Iran consulate to emerge:

Steven nabil

@thestevennabil

Major developments: 🔴 Iraqi protesters burn down the Iranian consulate in Basra

Babak Taghvaee@BabakTaghvaee

: Just 30 minutes ago hundreds of people of who have armed themselves with sticks, batons & small weapons announced that they are going to attack |ian consulate in & will set it on fire. Mortar attack at ‘s Green Zone might be related.

Men wielding sticks and small weapons were filmed making their way toward the consulate Thursday overnight. Chants could be heard in front of the consulate, saying Iran out, Basra remains free”.

Earlier in the week as Iraqi government buildings came under attack Iran formally requested that Baghdad send extra security personnel to guard the consulate. Prior local reports suggest there was a beefed up security presence; however, crowds of demonstrators appear to have swelled during the night.

END

developing..

SYRIA/USA

Trump does another 180 degree shift and now calls on a regime change in Syria

(courtesy zerohedge)

Trump Does 180 Shift On Syria: Regime Change Back On The Table

Will the war in Syria never end? Will the international proxy war and stand-off between Russia, the United States, Iran, and Israel simply continue to drift on, fueling Syria’s fires for yet more years to come?  It appears so according to an exclusive Washington Post report which says that President Trump has expressed a desire for complete 180 policy shift on Syria.

Only months ago the president expressed a desire “to get out” and pull the over 2,000 publicly acknowledged American military personnel from the country; but now, the new report finds, Trump has approved “an indefinite military and diplomatic effort in Syria”.

 

The radical departure from Trump’s prior outspokenness against militarily pursuing Syrian regime change, both on the campaign trail and during his first year in the White House, reportedly involves “a new strategy for an indefinitely extended military, diplomatic and economic effort there, according to senior State Department officials”.

This even though one of the Pentagon’s main justifications for being on Syrian soil in the first place — the destruction of ISIS — has already essentially happened as the terror group now holds no significant territory and has been driven completely underground.

But most worrisome about the Post report is that sources said to be close to White House policy planning on Syria suggest that Trump has made a commitment to pursuing regime change as a final goal.

Crucially, the report describes that “the administration has redefined its goals to include the exit of all Iranian military and proxy forces from Syria, and establishment of a stable, nonthreatening government acceptable to all Syrians and the international community.”

Of course, there’s the glaringly obvious issue of the fact that the most powerful top competing “alternatives” to the current government in Damascus include groups like Hay’at Tahrir al-Sham, which currently holds Idlib and is under direct allegiance to al-Qaeda chief Ayman al Zawahiri (as recently confirmed in the US State Department’s own words).

Donald J. Trump

@realDonaldTrump

President Bashar al-Assad of Syria must not recklessly attack Idlib Province. The Russians and Iranians would be making a grave humanitarian mistake to take part in this potential human tragedy. Hundreds of thousands of people could be killed. Don’t let that happen!

The shift stems from the White House’s re-prioritizing the long held US desire for the complete removal of Iranian forces from Syria. There’s reportedly increased frustration that Russia is not actually interested in seeing Iran withdraw, despite prior pledges as part of US-Russia largely back channel diplomacy on Syria.

However, the Post report quotes a top Pompeo-appointed official, James Jeffrey, who is currently “representative for Syria engagement” at the State Department, to say that U.S. policy is not that “Assad must go” but that immense pressure will be brought to bear, and in terms of future US troop exit, “we are not in a hurry”.

“The new policy is we’re no longer pulling out by the end of the year,” Jeffrey said while noting the mission would largely shirt ensuring Iranian departure. He also indicated to that Trump is likely “on board” on signing off on “a more active approach” should there be direct confrontation with either Iran or Russia. 

It goes without saying that such a significant policy shift makes the possibilities of just such a confrontation — or perhaps “provocation” — over Idlib all the more dangerous considering it now appears Trump may now be looking for an excuse to act, which would provide the usual convenient distraction from problems at home.

end
Turkey
An extremely important commentary from our experts on Middle Eastern affairs: GEFIRA.
Gefira outlines 3 specific areas where Turkey will secure oil due to the fact that they need to import 1 million barrels of oil per day and their lira is falling, making these expenditures cost prohibitive.
1. Take over the oil fields in Kirkuk, Iraq.
2. take over the gas fields surrounding the Israeli-Cyprus discovery
3. forge alliances with Qatar and secure their supplies of LNG
(courtesy GEFIRA)

Turkey Will Secure Its Energy Supply, No Matter The Cost

Via GEFIRA,

Economic problems resulting from US sanctions and the decline in the value of the Turkish lira will increase the already record high trade deficit, currently half of which is related to energy imports.In 2017 it amounted to 77 billion USD, more than twice the amount of 2016. Erdoğan is determined to create a politically dominant state. To this end he needs to ensure energy independence, which can be done through the occupation of the oil fields in Kirkuk, and the acquisition of the gas fields of Cyprus.

Last year Turkey consumed more than 1 million barrels of oil a day. Energy spending increased from 27.16 billion USD in 2016 to 37.19 billion USD in 2017, which made up 50% of the trade deficit.

 

The increase in oil prices will affect the trade deficit even more, while 75% of its value will be energy imports. The average annual barrel price in 2017 was 54 USD, and this year the average cost is about 70 USD, and the price will continue to rise. All of this is a drag on Turkish economy. To counteract the negative balance sheet, Recep Erdoğan will take more determined steps to ensure energy independence. This, however, will lead to turmoil in the region.

 

1. Kirkuk, one of the oldest and largest oil fields in the Middle East, is located in the Kurdish autonomous area in northern Iraq. Iraqi Kurdistan took control of them in 20113) and decided to connect Kirkuk with the existing pipeline to Ceyhan to bypass Baghdad and sell Iraqi oil on the international market without the consent of the Iraqi authorities. After the Iraqi part of the Kirkuk-Ceyhan pipeline had been taken over by ISIS and partly destroyed, the Kurdish authorities created a pipeline transmission network, and so were able to export 300,000 barrels a day to Anatolia.In October 2017, the region was retaken by the Iraqi army. The government in Baghdad has committed itself to building a new transmission line from Kirkuk to the Turkish border (around 350 km), where it will merge with the existing oil infrastructure leading to Ceyhan.4) Both the Iraqi and Kurdish authorities want Turkey to be perceived as the most important oil importer from the Kirkuk fields (other countries adjacent to Iraq are self-sufficient in terms of oil), Erdoğan has a different strategy for this area.. Kurdish oil fields can produce up to 1 million barrels a day, which equals Turkish demand. In 2016 Erdoğan declared “If the gentlemen desire so, let them read the Misak-i Milli (National Oath) and understand what the place means to us,” The Turkish president referred to an Ottoman Parliament-sealed 1920 pact that designates Kirkuk and Mosul as parts of Turkey.

Ankara wants to regain these regions lost in 1926 as a result of the Treaty of Ankara regulating the border with Iraq, which was then a British colony. The agreement signed in 1926 stipulates that although the areas do not belong to Turkey, Ankara has the right to initiate military action in case of destabilization in the region. Thus, the agreement between Turkey, United Kingdom and Iraq is Erdoğan’s pretext for increasing Turkey’s military presence in Kurdistan.

In August 2018 Erdoğan said Turkey was taking steps to save Iraq’s Qandil (and possibly Sinjar) area from being a “nest of terror”. It took the form of the Tiger Shield operation, whose aim was to combat the Kurdistan Workers’ Party (PKK) with its headquarters and training bases in Northern Iraq.8)Both Ankara and Baghdad treat it as a terrorist organization threatening both countries. As a result Turkey has created 11 military bases in the Kurdistan area and doubled the number of soldiers stationed there. The Iraqi authorities, however, are afraid of the growing involvement of Turkey on Iraqi soil.

 

[The map of Turkey according to the Ottoman Parliament-sealed, 1920 National Oath that designates today’s Kurdistan Region, Mosul, Syrian Kurdistan, Aleppo, parts of the Balkans and Caucasus as Turkish soil.]

While an outright takeover of Kirkuk is not imminent, Ankara realises that the incorporation of Kirkuk into its economic sphere or creation of a Turkmen vassal-state will solve a large part of its energy problems. However, Erdoğan, being a statesman, will take his time in reaching his goal. The leader of the Iraqi Turkmen Front (ITF) said last month in support of Turkey: “An attack on Turkey is an attack on all of the region’s Turkmen,” he added “The situation of the region’s Turkmen — in both Iraq and Syria — is all connected,” he said: “As Turkmen, a strong Turkish lira is good for us.”

2. Turkey under the pretext that some areas of the coastal sea zone in Cyprus (like Block 3, which Gefira team analyzed in February) fall under the jurisdiction of Ankara-dependent Turkish Cypriot government (Northern Cyprus) intends to extract gas from the Cyprus Exclusive Economic Zone (EEZ). At the beginning of this year the Turkish navy prevented the Italian Eni group vessel from operating in the Cypriot economic zone. Erdoğan already made a statement addressed to the authorities in Nicosia and Athens:

“„We warn those who overstep the mark in Cyprus and the Aegean. (…) They are standing up to us until they see our army, ships and planes”.

The statement of the President of Turkey confirms the greater military involvement in this part of the Mediterranean and the intensification of the exercises. At the beginning of the month Foreign Minister of Turkey Mevlüt Çavuşoğlu said that Turkey could start drilling in the Eastern Mediterranean this autumn as the country had already purchased a platform. A conflict in this area is inevitable.President Erdoğan warned Cyprus and international gas exploration companies that the violation of Turkish interests would have bad consequences. We expect that if Ankara takes over Cypriot gas blocks, Israel will be on the side of Cyprus, which has its own interests in this area and whose troops are stationed there. In September, Greece, Israel and Cyprus will hold a summit about gas exploration in the Eastern Mediterranean and Turkish plans to drill in the region. Ankara is not invited.

3. Maintaining good relations with Qatar is essential for Turkey. Both Turkey and Qatar are supporters of Muslim Brotherhood and it is said that Qatar’s row with the Gulf countries is about its assistance to the brotherhood.22) Turkey is still a staunch supporter of Morsi, the abolished Egyptian Muslim Brotherhood president of Egypt. Ankara and Doha are strategic partners on political, economic and military levels. Qatar supplied Turkey with 1.5 billion tonnes of LNG.23) Ankara is Qatar’s important and natural security ally.As part of the 2014 military cooperation agreement, Turkey created a military base in Qatar, and in the aftermath of the 2017 Gulf Crisis decided to increase its contingent there.24) Ankara’s presence in Qatar is a better security guarantor than the US, which sacrificed their staunch ally Hosni Mubarak of Egypt. Turkey also provided Qatar with food by plane when the other countries of the Gulf blocked the latter’s supply lines.25)Doha repays Ankara by promising to help to the amount of USD 15 billion in the form of support for “many economic projects, investments and deposits” and a currency swap.26) In return for further military presence and support for Qatar through Turkey, Doha may repay further investments and financial measures aimed at stopping the decline of the Turkish lira.

Military forces have changed governments in Afghanistan, Iraq, Yemen, Libya but failed to do so in Syria. The goal is the same as with the actions against Venezuela, Iran and Turkey. Before the election the Gefira team predicted that the financial attack on Turkey would stop after the election, but we were wrong. We also said that Erdoğan would not give in, and we were right. Erdoğan’s plan for Turkey is the restoration of the Ottoman power and its role in the region and in the world. To accomplish that, he has to shrink its trade deficit and secure his energy supply.

 

end

Iran

The economy in Iran is tanking faster than a speeding bullet as the Riyal reaches 150,000 to one and many staple goods disappear like diapers

(courtesy zerohedge)

“Even Diapers Are Scarce”: Iran’s Rial Plummets To Record Low Amid Economic Carnage

An on the ground report by the Associated Press details the disastrous effects of the Iranian rial’s continuing slide as it hit a record low starting Wednesday: residents in Tehran are frantically lining up outside money changing offices, diapers and many basic staples have disappeared from store shelves, and hard currency only is being demanded even to book an airline ticket. 

The rial has this week plummeted 140 percent since the United States withdrew from the Iran nuclear deal a mere four months ago in May.

Local and international reports indicate that on Wednesday the national currency began trading at over 150,000 rials to $1USD in the currency exchange shops of Tehran.

Image source: TIMA via Al Monitor

As the AP reports“Those who went to work at the start of the Iranian week on Saturday saw their money shed a quarter of its value by the time they left the office on Wednesday.” There’s a sense of nervousness and panic in the air according to the report, with a rush to find black market money changers on the streets, even though state media has yet to acknowledge just how low the true value of the rial has fallen.

Meanwhile Iran’s top leadership continues to lash out at Washington for stripping common citizens of their daily needs. In a speech over the past weekend Iran’s supreme leader Ayatollah Ali Khamenei, condemned the US sanctions as economic “sabotage” while making specific mention of diaper shortage.

Via the WSJ

“Imagine that in Tehran or other major cities, baby diapers suddenly become scarce. This is happening, this is real, this is not make-believe. Baby diapers!” Khamenei said, according to the official state transcript. “This makes people angry. On the other side, the enemy wants people to be angry with the government and system. This is one of their ways.”

Domestic diaper companies rely on some 70% imported raw material to produce their diapers. Purchasing the material from abroad while the rial simultaneously crashes has left over ten diaper producers on the verge of bankruptcy.

Currency exchange office, Tehran, via AFP

Middle East news and analysis site Al-Monitor details the crisis, which is being echoed across multiple other major industries which in the past could be relied on to supply lower and middle class families with cheap products:

Iran’s diaper needs are met by both imports and domestic manufacturers.

The recent increase in prices has been blamed on the devaluation of the national currency as well as hoarding by some distributors of imported brands. Union leaders also say a lack of raw materials has led to a production halt at several diaper factories in the country. “At least 10 Iranian diaper producers are on the verge of bankruptcy,” Seyyed Hossein Dokmehchi told Iran Labor News Agency.

Adding to manufacturer’s woes is the fact that when the bulk of such raw materials get stuck in customs offices, companies must deal in official rates of the Central Bank of Iran.

As Al-Monitor explains, Iranian manufacturing companies now lose the moment they import the goods:

They had registered their orders based on the official exchange rate of 42,000 rials per dollar, per recent directives issued by the Central Bank of Iran for essential goods. Now the importers are required to pay a margin calculated on a secondary rate for the importation of non-essential goods. That rate stands at around 90,000 rials per dollar, far higher than the rate extended to prioritized imports, but lower than the open market of around 14,000 rials per greenback.

Meanwhile on the streets of Tehran money-change office began shuttering their shops once the rial began reaching upward of 150,000 to the dollar.

Those that have remained open are requiring citizens to show airline tickets for travel abroad as proof the foreign currency is for travel.

Parliament has reportedly been considering a plan to distribute subsidized goods to meet Iranians’ basic needs, with lawmakers announcing they’ve allocated $13 billion for commodities and medicine and a further $6 billion to help the poor.

As quoted by the AP, budget head Mohammad Bagher Nobakht lamented of what’s to come, describing a future of “long queues in front of the shops, like money exchange houses, that can create an ugly scene in the city alleys and streets.”But it appears Tehran is already deep in the midst of this, and such scenes will only get worse.

end

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 FRIDAY morning 7:00 am

Euro/USA 1.1619 DOWN .0001/ 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 

 

USA/JAPAN YEN 110.84   UP 0.353  (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 1.3008 UP   0.0084  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.3125  DOWN .0030(CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS FRIDAY morning in Europe, the Euro FELL by 1 basis point, trading now ABOVE the important 1.08 level FALLING to 1.1619; / Last night Shanghai composite CLOSED UP 10.71 POINTS OR 0.40%  /Hang Sang CLOSED DOWN 1.35 POINTS OR 0.01% /AUSTRALIA CLOSED DOWN  0.25% / EUROPEAN BOURSES ALL RED

 

The NIKKEI: this FRIDAY morning CLOSED DOWN 180.88 POINTS OR 0.80%

 

Trading from Europe and Asia

1/EUROPE OPENED ALL RED 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang DOWN 1.35 POINTS OR 0.01%  /SHANGHAI CLOSED UP 10.71 POINTS OR  0.40%

Australia BOURSE CLOSED DOWN 0.25%

Nikkei (Japan) CLOSED DOWN 180.88 POINTS OR 0.80%

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1201.80

silver:$14.19

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

The 30 yr bond yield 3.06 DOWN 1  IN BASIS POINTS from THURSDAY night. (POLICY FED ERROR)/

USA dollar index early FRIDAY morning: 94.93 DOWN 9  CENT(S) from THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now your closing FRIDAY NUMBERS \1: 00 PM

 

Portuguese 10 year bond yield: 1.90% UP 2    in basis point(s) yield from THURSDAY/

JAPANESE BOND YIELD: +.11%  DOWN 0 BASIS POINTS from THURSDAY/JAPAN losing control of its yield curve/EXTREMELY VOLATILE YESTERDAY

SPANISH 10 YR BOND YIELD: 1.46% UP 1  IN basis point yield from THURSDAY/

ITALIAN 10 YR BOND YIELD: 3.04 DOWN  2   POINTS in basis point yield from THURSDAY/

 

 

the Italian 10 yr bond yield is trading 158 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: RISES UP TO +.39%   IN BASIS POINTS ON THE DAY

END

IMPORTANT CURRENCY CLOSES FOR FRIDAY

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

Euro/USA 1.15740  DOWN .0046(Euro DOWN 46 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 112.20 UP 0.706 Yen DOWN 71 basis points/

Great Britain/USA 1.2933 UP .0009( POUND UP 9 BASIS POINTS)

USA/Canada 1.3170  Canadian dollar DOWN 15  Basis points AS OIL FELL TO $67.62

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

This afternoon, the Euro was FELL BY 46 BASIS POINTS  to trade at 1.1574

The Yen FELL to 111.20 for a LOSS of 71 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 9 basis points, trading at 1.2933/

The Canadian dollar LOST 15 basis points to 1.3170/ WITH WTI OIL FALLING TO 67.62

The USA/Yuan,CNY closed DOWN AT 6.8438  ON SHORE  (YUAN DOWN)

THE USA/YUAN OFFSHORE:  6.8465 (  YUAN DOWN)

TURKISH LIRA:  6.3946

the 10 yr Japanese bond yield closed at +.11%   DOWN 0  BASIS POINTS FROM YESTERDAY

 

 

Your closing 10 yr USA bond yield UP 7  IN basis points from THURSDAY at 2.94 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.10 UP 4  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, 95.31 UP 39 CENT(S) ON THE DAY/1.00 PM/

Your closing bourses for Europe and the Dow along with the USA dollar index closing and interest rates for FRIDAY: 1:00 PM 

London: CLOSED DOWN  41.26 POINTS OR 0.56%

German Dax : CLOSED UP 4.38 POINTS  OR 0.04%
Paris Cac CLOSED UP 8.38 POINTS OR 0.16%
Spain IBEX CLOSED DOWN 37.50 POINTS OR 0.41%

Italian MIB: CLOSED DOWN:  79.53 POINTS OR 0.39%/

 

The Dow closed  DOWN  78.86 POINTS OR 0.30%

NASDAQ closed DOWN 20.18points or 0.25% 4.00 PM EST 

 

WTI Oil price; 67.62  1:00 pm;

Brent Oil: 76.39 1:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    69.67/ THE CROSS HIGHER  1.44 ROUBLES/DOLLAR (ROUBLE LOWER BY 44 BASIS PTS)

USA DOLLAR VS TURKISH LIRA:  6.3946 PER ONE USA DOLLAR.

TODAY THE GERMAN YIELD RISES +.39 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:$67.82

BRENT: $77.02

USA 10 YR BOND YIELD: 2.94%

USA 30 YR BOND YIELD: 3.10%/

EURO/USA DOLLAR CROSS: 1.1590 DOWN .0060 ( DOWN 60 BASIS POINTS)

USA/JAPANESE YEN:110.99 UP 0.505 (YEN DOWN 51 BASIS POINT/ .

USA DOLLAR INDEX: 95.38 UP 36 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.2919 DOWN 5 POINTS FROM YESTERDAY

the Turkish lira close: 6.4070

the Russian rouble:  69.91 DOWN 0.69 roubles against the uSA dollar.(DOWN 69 BASIS POINTS)

 

Canadian dollar: 1.3180 DOWN 25 BASIS pts

USA/CHINESE YUAN (CNY) : 6.8438  (ONSHORE)

USA/CHINESE YUAN(CNH):  6.8490 (OFFSHORE)

German 10 yr bond yield at 5 pm: ,0.39%


VOLATILITY INDEX:  14.59  CLOSED UP 0.68

LIBOR 3 MONTH DURATION: 2.327%  .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

Trump Tariff Threat Trounces Tech Turnaround, Tesla

Tattered

It was supposed to be a blockbuster day for stocks, if not so much for bonds, and it started off well.

One hour after the BLS reported the strongest growth in average hourly earnings in 9 years…

… stocks started off strong, even if the performance through mid-day left something to be desired.

The early rebound was driven by tech stocks, with a rebound in the battered semis and chip sector…

…helping FANGs reverse two days of sharp declines, at least in early trading.

Treasury yields showed more enthusiasm, with a sharp bond selloff after the bell sending 10Y yield to 2.95%, after opening at 2.88%. The move was matched across the curve, even if yield curve remained perfectly flat intraday and was last seen fractionally lower.

However the pleasant mood in the market was promptly spoiled just around noon, when Bloomberg carried over comments from Trump aboard Air Force 1, in which the president threatened to impose an additional $267BN in tariffs on China imports, in addition to the $200BN already contemplated, capturing virtually all Chinese exports. The latest salvo from Trump in the trade war rattled U.S. stocks a day after top American executives made a last-minute push to convince the president to not impose fresh tariffs. The result in the Dow Jones was instant, sending the multi-national heavy index tumbling by 100 points. At its low point, the Dow was down nearly 180 points…

… although as the day progressed, and as traders realized that the big “risk-off” event of the day, Trump’s announcement of $200BN in new Chinese tariffs, would be delayed, stocks recouped much of their losses, and the Nasdaq was virtually unchanged after peeking into the green on a few occasions.

The dour mood returned shortly after 3:30pm however, when Apple announced that it would likely be hit by the Chinese sanctions:

  • APPLE: PROPOSED TARRIFS AFFECTS WATCH, AIRPODS, APPLE PENCIL
  • APPLE SAYS PROPOSED TARRIFS ALSO AFFECT MAC MINI, SOME CABLES

Although even fears that Apple margins would be impacted failed to put too much pressure on stocks, and the S&P never really moved too far below the unchanged line.

Earlier in the session, dollar weakness helped emerging-market stocks snap seven days of declines while a gauge of currencies also rose.

The rebound, however, will be brief as today’s surge in the dollar which guarantees at least two more rate hikes this years, and potentially more in 2018, means that the pain for EMs will return as soon as Monday.

In summary, another day of whiplashes, in which Trump proved that with one phrase he can crush sentiment on a moment’s notice.

Meanwhile, as LPL Financial ‘s Ryan Detrick tweeted this morning, it’s been a tough start to the month of September for the S&P 500, which has fallen for the fourth day in a row. This is notable, because as he notes, “going back to the Great Depression, only two times did it start down the first four days. 1987 and 2001.

And, as Bloomberg shows, a 20-year seasonality chart bears that out, with “2018 a far cry from recent history.”

Which is troubling for hedge funds, because as Nomura showed earlier in the week, September has traditionally been a month of two-halved: a strong first half, and then a slide in the second.

It may be the case that have decided to skip the first half and go straight to the selloff.

Finally, it’s worth noting that just hours after Elon Musk gave a controversial interview in which he showed off his flamethrower and smoked pot, first Tesla’s Chief accounting officer quit after just one month on the job, followed immediately by an announcement that Tesla’s head of HR would not be returning to the company. The news sent TSLA stock plunging as much as 10%, its biggest one day drop in 2 years…

… While Tesla bonds plunged to the lowest on record.

Is the long-overdue bursting of the Tesla bubble emblematic of the sentiment shift in the market in general? Tune in next week and find out.

END

market trading/this morning

Dollar rises, yields rise on a red hot wage gain plus gain in hourly earnings

(courtesy zerohedge)

Dollar, Yields Surge After Wages Come In Hot

Wage inflation is back with a bang, and so is speculation that the Fed will be forced to hike far longer than the market expects, which of course means much more pain for emerging markets.

Because just as EM currencies breathed a sigh of relief that the dollar may have finally peaked after 4 weeks of declines, the greenback surged following today’s average hourly earnings number, which as a reminder, was the strongest in 9 years…

… leading to a sharp spike in the dollar.

The stronger dollar has translated to immediate yield strength as well, with 10Y yields jumping 5bps as high as 2.93%…

… while 2Y notes rose to 2.686%, the highest since July 2008.

As for stocks, they are down, but nothing too dramatic just yet, with S&P futures down about 9 points and the Dow -90.

As a reminder, it was the “hot” January hourly earnings print that according to many prompted the sharp selloff that Friday that cascaded into the VIXtermination event the following week. Is the market about to have another similar ugly reaction now that wage inflation, and the Phillips curve, appears to finally be making a comeback?

 

Market data

Supposedly the wage growth comes in red hot as they add 201,000 jobs above the 191,000 consensus. The key hourly earnings also game in red hot rising to .4% much higher than the expected .2%.  The dollar rises, gold falls, and yields spike  (see above)

(courtesy zerohedge)

Wage Growth Comes In Scorching Hot As US Adds More Than Expected 201K Jobs

While many were expecting a potential downside surprise due to the ‘residual seasonality’ of August payrolls (discussed previously), moments ago the BLS reported that after a weaker than expected July (which was revised lower from 170K to 153K), August payrolls came in strong than expected at 201K, above the 191K consensus estimate.

The revisions were less exciting: With the June revision down from +248,000 to +208,000, and the change for July was revised down from +157,000 to +147,000. With these revisions, employment gains in June and July combined were 50,000 less than previously reported.

As a reminder, it is likely that August will be revised even higher, as Bloomberg economist Tim Mahedy writes:

“Even though payroll gains exceeded consensus, keep in mind that August has a history of upward revisions, so this number is likely to be even stronger. Over the past five years, August payrolls have been revised up by an average of 51k relative to the first print.”

However, as we noted in our preview, while the payrolls number is generally ignored by the market with the unemployment rate near all time lows, and which in August was 3.9%, just above the 3.8% expected…

what prompted the spike in the dollar, and the lower  kneejerk response in risk assets, was the average hourly earnings print, which came in scorching hot, relatively speaking, rising 0.4% last month, double the 0.2% expected, and 2.9% on a Y/Y basis, the highest going back to 2009.

The breakdown by sector shows that durable goods manufacturing and professional and business services were the biggest contributors to the earnings increase, but the gains were fairly broad-based across sectors: wholesale trade, education and health services, nondurable goods manufacturing, and retail trade all logged solid gains as well.

Here’s Mahedy again: “Average hourly earnings reached an expansion high, growing by 2.9% on a 12-month basis. Policy makers have been waiting for signs that inflationary pressures are on the horizon. Here’s the first sign.

As a reminder, it was the “hot” January hourly earnings print that according to many prompted the sharp selloff that Friday that cascaded into the VIXtermination event the following week. Is the market about to have another similar ugly reaction now that wage inflation, and the Phillips curve, appears to finally be making a comeback?

Back to the report, we find another positive: the broader U-6 measure of unemployment fell to 7.4% from 7.5% as number working P/T for economic reasons fell 188k to 4.379 million.

More good news: the participation rate fell to 62.7% from 62.9%.

And even more good news: the number of involuntary part-time workers plunged back to 2007 levels, yet another confirmation of a tightening labor market.

Unlike prior months, there were no gimmicks in the hours worked, as the average workweek for all employees on private nonfarm payrolls remained unchanged at 34.5 hours in August.

Breaking down the job additions:

  • Professional and business services added 53,000 jobs in August and 519,000 jobs over the year.
  • In August, health care employment rose by 33,000, with job gains in ambulatory health care services (+21,000) and hospitals (+8,000). Health care has added 301,000 jobs over the year.
  • Wholesale trade employment increased by 22,000 in August and by 99,000 over the year. Durable goods wholesalers added 14,000 jobs over the month and accounted for about two-thirds of the over-the-year job gain in wholesale trade.
  • Employment in transportation and warehousing rose by 20,000 in August and by 173,000 over the past 12 months. Within the industry, couriers and messengers added 4,000 jobs in August.
  • Mining employment increased by 6,000 in August, after showing little change in July. Since a recent trough in October 2016, the industry has added 104,000 jobs, almost entirely in support activities for mining.
  • Employment in construction continued to trend up in August (+23,000) and has increased by 297,000 over the year.
  • Manufacturing employment changed little in August (-3,000). Over the year, employment in the industry was up by 254,000, with more than three-fourths of the gain in the durable goods component.
END
And today’s last word of the jobs report  belongs to Dave Kranzler of IRD who tells the real truth
(courtesy Dave Kranzler/IRD)

The Employment Report Has Become Orwellian In The Extreme

“Today’s job numbers might be the biggest disaster I’ve ever seen reported. This Fall could get real ugly real fast. The deterioration of the participation rate is so big it makes me suspicious of earlier numbers.” – John Titus, producer of Best Evidence videos.

Titus goes on to say, “”The Household Survey” is showing a net loss of 1.47 million jobs year-over-year and a Labor Force reduction north of 2 million [YoY]. CNBC headline: ‘Economy adds more jobs than expected.’”

The employment report is unquestionably the most manipulated economic report issued by the Government. The content of the the headline on which the mainstream media bases its  broadcast and analysis of the report is entirely disconnected from the actual data contained in the report. The damning data that no one in the financial media or Wall Street seems to be able to find is at the top of the BLS ’ report:

As you can see, the “civilian labor force”declined by 469,000 people in August from July. The number of “employed” dropped 423,000. The “not in labor force” increased by nearly 700,000. With these facts in mind (“facts” at least as far as the BLS numbers contain any shards of credibility),  how can the Government claim that 201,000 “jobs were created” in August? How can CNBC say the “economy created more jobs than expected?”  Based on the numbers in the details of the BLS report, it looks like, between the decline in the number of people employed and the decline in those not counted as part of the labor force, the economy shed over 1 million jobs.

Titus remarked to me that, in terms of manipulating the data to make the headline report look positive, this is the worst report he’s ever scrutinized: “In terms of people leaving the labor force, it sure looks like earlier data was was manipulated to hell and back and the BLS just couldn’t hide it any longer. The deltas are f—ing crazy.”

By the way, has anyone besides me noticed that the BLS calls this report the, “Employment Situation Report?”  What does that even mean?

On another note, my colleague and Mining Stock Daily collaborator, Trevor Hall, posted a fascinating interview with Scott Close and Dr. Eric Jensen of EMX Royalties.  EMX employs a project generator royalty  model and has 92 assets, three of which are current-pay royalty assets. One topic covered is what EMX will do with the cash proceeds from the sale of its giant Malmyzh copper-gold project in eastern Russia. EMX will receive a cash payment ($68 million) that is approximately two-thirds of EMX’s current market cap ($98 million).  You can listen this interview by clicking on the image below (or this link: MSD / EMX Royalty):

end

USA economic/general stories

-END-

 

SWAMP STORIES

The FBI hid the fact that on wiretaps, Russia thought Carter Page was an “idiot” and unworthy of recruiting.  These facts were left out of the FISA applications

(courtesy zerohedge)

FBI Hid Fact That Russia Thought Carter Page Was An “Idiot” Unworthy Of Recruiting: Sperry

The FBI, in its ham-handed FISA application on former Trump campaign adviser Carter Page, somehow forgot to include the fact that Russian spies thought Page was an “idiot” who was unworthy of recruiting, according to Paul Sperry of RealClear Investigations.

The FBI was aware of Russians’ skepticism that Page knew anything of value or was a significant player because the bureau had recorded them voicing such doubts in a wiretap, from an earlier espionage case involving three Russian spies working undercover for the Kremlin in New York. –RCI

The FBI of course used that 2013 case as part of the FISA application – claiming to have evidence of Page’s recruitment by the Kremlin, however the “idiot” part was deliberately withheld.

They have been made public only in redacted form, professing evidence that Page was “recruited” by Russian intelligence and had “coordinated” with the Russian government. But “that’s a mischaracterization of the facts in the case,” a congressional source said. –RCI

This vital detail was also omitted from three subsequent renewals of the wiretap warrant, at least one of which Deputy Attorney General Rod Rosenstein signed off on. The warrants from the Foreign Intelligence Surveillance Court (FISC) enabled the DOJ/FBI to spy on Page and others he was in contact with for almost a year, according to Sperry’s sources.

As Sperry notes, when the FISA warrants are viewed in totality, it’s clear that “the court was not alerted to this seemingly critical information,” according to congressional sources, which happened despite the FBI and DOJ officials having full access to the 26-page court filing.

The FISA applications omit the fact that a Russian intelligence officer called page ‘an idiot,’ ” one congressional source said. The official spoke only on condition of anonymity due to the still-classified nature of the information. –RCI

What’s more, former FBI officials as well as agents familiar with FISA warrants say that the DOJ’s affidavits for Page appear to be “material misrepresentations” which fail to adhere to so-called Woods Procedures which require the accuracy of facts from sworn declarants – procedures which were strengthened in 2003 by Robert Mueller, then director of the FBI.

Withholding material and exculpatory evidence from the FISA applications may also have violated Page’s Fourth Amendment protections against omissions of material facts that would undermine or negate probable cause to search.

It is illegal,” said veteran FBI agent Michael Biasello. “The affiant” — the person swearing to the affidavit — “cannot cherry-pick only information favorable to the case.” –RCI

Who’s exposed?

According to Sperry, if the DOJ ever prosecutes itself for this and other FISA abuses, senior officials who swore out the Page warrants could be subject to perjury and conspiracy charges, incluging James Comey, Andrew McCabe, Sally Yates and Rod Rosenstein – who could all be barred from appearing before the FISA court as well.

Read the rest here.

 
END
Guiliani states (and he is correct to do so) that Trump will not answer any questions about obstruction
(courtesy zerohedge)

Giuliani: Trump Will Not Answer Any Questions About Obstruction

In his most forceful rebuke of the Mueller probe to date, Trump attorney Rudy Giuliani told the Associated Presson Thursday that the president will not be answering any of the investigation’s questions about whether he obstructed justice last year by firing former FBI Director James Comey.

“That’s a no-go. That is not going to happen,” Giuliani said. “There will be no questions on obstruction.”

Earlier in the day, Giuliani had hinted that the Mueller probe had continued to push for an in-person interview with the president by revealing that they shared a “formula” for said interview with Trump’s lawyers. That followed reports earlier in the week that Mueller would be open to accepting at least some answers to his questions to be submitted in written form. In response, Giuliani suggested that Trump’s lawyers would be happy with this arrangement, though they’d like to stop Mueller’s team from asking follow-up questions.

“It would be in written form and if you want to follow up on our answers, justify it. Show us why you didn’t get there the first time,” Giuliani said. “We aren’t going to let them spring it on us,” said Giuliani, who has served as lawyer-spokesman for the president’s personal legal team

Trump’s lawyers have been battling with Mueller since late last year over whether Trump would sit for an interview with investigators, but so far the two sides have yet to reach an accord – though Giuliani had hinted earlier in June that a final decision might arrive soon. While Trump said early this year that he’d be happy to testify, his lawyers have reportedly been pushing him to refuse Mueller’s request. Mueller’s team has said it would subpoena Trump in the event of a refusal, which would almost certainly prompt a bitter legal battle that would likely rise all the way to the Supreme Court.

Trump

However, fortunately for Trump and his team, the widely anticipated confirmation of Brett Kavanaugh as the next Supreme Court Justice will likely tilt the odds in his favor as the court’s two newest members would both be conservatives appointed by Trump. And with the legal precedent for compelling a president to testify remaining vague, Trump’s legal team is likely growing increasingly comfortable with the idea that, should Mueller issue a subpoena, it would be easily rebuffed. Mueller probably understands this, too – hence his recent attempts to get Trump’s team to at least agree to answering some questions in writing.

end

The probable “senior official” is wrote the New York Times Op Ed was nobody…a fake..written by the likes Brennan, Rosenstein etc trying to stir the  pot ahead of Trump releasing the confidential documents

a must read…

(courtesy Craig Roberts)

https://www.paulcraigroberts.org/2018/09/06/i-know-who-the-senior-official-is-who-wrote-the-ny-times-op-ed/

I Know Who the “Senior Official” Is Who Wrote the NY Times Op-Ed

Dear Readers: Your website needs your support. It cannot exist without it.
When you read my column below, you will read what you cannot find anywhere else–a clear, concise, correct explanation of who the author is of the New York Times op-ed falsely attributed to a “senior Trump official.”

I Know Who the “Senior Official” Is Who Wrote the NY Times Op-Ed

Paul Craig Roberts

I know who wrote the anonymous “senior Trump official” op-ed in the New York Times. The New York Times wrote it.

The op-ed (http://www.informationclearinghouse.info/50194.htm) is an obvious forgery. As a former senior official in a presidential administration, I can state with certainty that no senior official would express disagreement anonymously. Anonymous dissent has no credibility. Moreover, the dishonor of it undermines the character of the writer. A real dissenter would use his reputation and the status of his high position to lend weight to his dissent.

The New York Times’ claim to have vetted the writer also lacks credibility, as the New York Times has consistently printed extreme accusations against Trump and against Vladimir Putin without supplying a bit of evidence. The New York Times has consistently misrepresented unsubstantiated allegations as proven fact. There is no reason whatsoever to believe the New York Times about anything.

Consider also whether a member of a conspiracy working “diligently” inside the administration with “many of the senior officials” to “preserve our democratic institutions while thwarting” Trump’s “worst inclinations” would thwart his and his fellow co-conspirators’ plot by revealing it!

This forgery is an attempt to break up the Trump administration by creating suspicion throughout the senior level. If Trump falls for the New York Times’ deception, a house cleaning is likely to take place wherever suspicion falls. A government full of mutual suspicion cannot function.

The fake op-ed serves to validate from within the Trump administration the false reporting by the New York Times that serves the interests of the military/security complex to hold on to enemies with whom Trump prefers to make peace. For example, the alleged “senior official” misrepresents, as does the New York Times, President Trump’s efforts to reduce dangerous tensions with North Korea and Russia as President Trump’s “preference for autocrats and dictators, such as President Vladimir Putin of Russia and North Korea’s leader, Kim Jong-un” over America’s “allied, like-minded nations.” This is the same non-sequitur that the New York Times has expressed endlessly. Why is resolving dangerous tensions a “preference for dictators” and not a preference for peace? The New York Times has never explained, and neither does the “senior official.”

How is it that Putin, elected three times by majorities that no US president has ever received, is a dictator? Putin stepped down after serving the permitted two consecutive terms and was again elected after being out of office for a term. Do dictators step down and sit out for 6 years?

The “senior official” also endorses as proven fact the alleged Skripal poisoning by a “deadly Russian nerve agent,” an event for which not one scrap of evidence exists. Neither has anyone explained why the “deadly nerve agent” wasn’t deadly. The entire Skripal event rests only on assertions. The purpose of the Skripal hoax was precisely what President Trump said it was: to box him into further confrontation with Russia and prevent a reduction in tensions.

If the “senior official” is really so uninformed as to believe that Putin is a dictator who attacked the Skripals with a deadly nerve agent and elected Trump president, the “senior official” is too dangerously ignorant and gullible to be a senior official in any administration. These are the New York Times’ beliefs or professed beliefs as the New York Times does everything the organization can do to protect the military/security complex’s budget from any reduction in the “enemy threat.”

Do you remember when Condoleezza Rice prepared the way for the US illegal invasion of Iraq with her imagery of “a mushroom cloud going up over an American city”? Iraq had no nuclear weapons, and everyone in the government knew it. There was no prospect of such an event. However, there is a very real prospect of mushroom clouds going up over many American and European cities if the crazed Russiaphobia of the New York Times and the other presstitutes along with the Democratic Party and the security elements of the deep state continue to pile lie after lie, provocation after provocation on Russia’s patience. At some point, the only logical conclusion that the Russian government can reach is that Washington is preparing Americans and Europeans for an attack on Russia. Propaganda vilifying and demonizing the enemy precedes military attacks.

The New York Times’ other attack on President Trump—that he is unstable and unfit for office—is reproduced in the fake op-ed: “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,” writes the invented and non-existent “senior official.”

Americans are an insouciant people. But are any so insouciant that they really think that a senior official would write that the members of President Trump’s cabinet have considered removing him from office? What is this statement other than a deliberate effort to produce a constitutional crisis—the precise aim of John Brennan, James Comey, Rod Rosenstein, the DNC, and the New York Times. A constitutional crisis is what the hoax of Russiagate is all about.

The level of mendacity and evil in this plot against Trump is unequaled in history. Have any of these conspirators given a moment’s thought to the consequences of removing a president for his unwillingness to worsen the dangerously high tensions between nuclear powers? The next president would have to adopt a Russophobic stance and do nothing to reduce the tensions that can break out in nuclear war or himself be accused of “coddling the Russian dictator and putting America at risk.”

The reason that America is at risk is that the CIA and the presstitute media have put America—and Europe—at risk by frustrating President Trump’s intention to reduce the dangerous level of tensions between the two major nuclear powers. Professor Steven Cohen, America’s premier Russian expert, says that never during the Cold War were tensions as high as they are at this present time. As a former member of The Committee on the Present Danger, I myself am a former Cold Warrior, and I know for a fact that Professor Cohen is correct.

In America today, and in Europe, people are living in a situation in which the liberal-progressive-left’s blind hatred of Donald Trump, together with the self-interested power and profit of the military security complex and election hopes of the Democratic Party, are recklessly and irresponsibly risking nuclear Armageddon for no other reason than to act out their hate and further their own nest.

This plot against Trump is dangerous to life on earth and demands that the governments and peoples of the world act now to expose this plot and to bring it to an end before it kills us all.

end

From the King report

More swamp stories for you to digest

(courtesy King report):

WaPo: Prosecutors use grand jury as investigation of Andrew McCabe intensifies
Federal prosecutors have for months been using a grand jury to investigate former FBI deputy director Andrew McCabe — an indication that the probe into whether he misled officials exploring his role in a controversial media disclosure has intensified, two people familiar with the matter said.  The grand jury has summoned more than one witness, the people said, and the case is ongoing…
 
John Solomon with another scoop: Bruce Ohr’s efforts to secretly reshape the Trump probe started earlier in summer ’16 – Steele first approached the FBI about the raw intelligence of possible Trump-Russia ties on July 5, 2016, when he stopped by the bureau’s office in Rome. Whatever transpired there, that first contact was not enough to cause the FBI to start an immediate probe.  Then Ohr, the No. 4 DOJ official, intervened, according to the newly discovered information.
 
FBI Kept from U.S. Spy Court Russian View of Carter Page as ‘an Idiot’
The potentially exculpatory detail was also withheld from three renewals of the wiretap warrant before a special government surveillance court…
 
[ex] U.S. Attorney Joe diGenova: Rod Rosenstein under Investigation for Fake FISA Warrants
No longer has authority to sign FISA applications…
 
Relax, President Trump: New York Times Has History of Exaggerating Seniority of Anonymous Officials          https://townhall.com/columnists/phelimmcaleer/2018/09/06/relax-president-trump-new-york-times-has-history-of-exaggerating-seniority-of-anonymous-officials-n2516340
 
CIRCUS: Mueller Gives Witness ‘Special Permission’ to Bring His Dog “Bianca” to Testify at Grand Jury – Bianca the dog is in D.C. to attend the hearing against Roger Stone, who Credico said threatened to take the Coton de Tulear canine away from him. Credico will be ratting out Stone for alleged threatening email… [As far as we can tell, this is NOT a parody!]
end

Trump on the warpath as he demands Sessions to investigate that anonymous Op-Ed.  He is also looking at legal action. I personally do not think it is anybody at the senior level.  I agree with Craig Roberts that it was written by a deep stater like Brennan or Rosenstein

(courtesy zerohedge)

“Issue Of National Security”: Trump Demands Sessions Investigate Anonymous Op-Ed, Looking At Legal Action

President Trump on Friday said that he wants Attorney General Jeff Sessions to investigate who wrote an anonymous Op-Ed in the New York Times critical of his administration, as a matter of national security.

Speaking to reporters on board Air Force One, the President also mentioned possibility of legal action against the Times, which published the Op-Ed claiming to be from “part of the resistance inside the Trump administration.

During a Thursday night campaign rally event in Billings, Trump called on the Times to publish the name of the author “at once.”

PRESIDENT DONALD TRUMP: The so-called resistance is angry because their horrible ideas have been rejected by the American people, and it’s driving them crazy. Crazy. They’re the ones, honestly, that have been driven crazy.

The latest act of resistance is the op-ed published in the failing New York Times by an anonymous — really an anonymous, gutless coward. You just look. He was — nobody knows who the hell he is, or she, although they put he, but probably that’s a little disguise. That means it’s she.

But for the sake of our national security, the New York Times should publish his name at once. I think their reporters should go and investigate who it is. That would actually be a good scoop.

(APPLAUSE)

That would be a good scoop. Unelected deep state operatives who defy the voters to push their own secret agendas are truly a threat to democracy itself. And I was so heartened when I looked

Trump added: “I think it’s backfired. Seriously. People that don’t exactly dig us and they don’t exactly like me, they’re fighting for us. It’s an incredible — it’s actually a beautiful thing. We picked up a lot of support, because at some point this whole thing is going to be exposed. And it’s really bad, and it’s really dangerous, and it’s really sad for the media and the mainstream media. It really is sad.”

To that end, Pulitzer Prize winning co-founder of The Intercept, Glenn Greenwald, 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

end
Let us close out the week with this offering courtesy of Greg Hunter of USAWatchdog

SM and Deep State Panic, Forbes Issues Warning, Farm Report

By Greg Hunter On September 7, 2018 In Weekly News Wrap-Ups

Greg Hunter’s USAWatchdog.com (WNW 351 9.7.18)

Panic is the word that comes to mind with the Democrats, Deep State and the mainstream media (MSM) with the shrill attacks on President Trump using only anonymous sources. They are trying to assassinate his character by making things up about his mental health that are totally untrue. They are lying to try to remove him from office because his policies are good for “We the People” but horrible for them.

Forbes is issuing a warning on the economy. Forbes says things my look strong with a sky high stock market, but they are saying things are “. . . extremely unhealthy, artificial bubble economy that will end in a crisis even worse than 2008.”

Some areas of the country are doing great and have plenty of rain, but other areas have been in drought conditions, and the crops are taking a huge hit. Greg Hunter will let you know how it is going in the farm report.

Join Greg Hunter as he talks about these stories and more in the Weekly News Wrap-Up.

After the Interview:

Dr. Dave Janda of the popular “Operation Freedom” radio show will be Greg’s guest for the Early Sunday Release.

Video Link

https://usawatchdog.com/msm-and-deep-state-panic- forbes-issues-warning-farm-report/

-END-

TO ALL OUR JEWISH FRIENDS OUT THERE, WE WISH YOU A VERY HAPPY AND PROSPEROUS NEW YEAR.

WE WILL SEE YOU ON MONDAY NIGHT.

 

 

HARVEY

 

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