SEPT 11/GOLD UP $3.00 TO $1197.60/SILVER DOWN ONE CENT TO $14.15/CHINA AND THE USA THREATEN EACH OTHER WITH FURTHER SANCTIONS/USA BUDGETARY DEFICIT CLIMBS HIGHER THAN EXPECTED AT $895 BILLION FOR 11 MONTHS: THE USA IS ON TAP TO PRINT 1.8 TRILLION DOLLARS WORTH OF BONDS THIS COMING YEAR/MORE SWAMP STORIES FOR YOU TONIGHT/

 

GOLD: $1197.60 UP  $3.00 (COMEX TO COMEX CLOSINGS)

Silver:   $14.15   DOWN 1 CENT (COMEX TO COMEX CLOSING)

 

Closing access prices:

Gold $1198.60

silver: $14.15

 

 

 

 

 

For comex gold:

SEPT/

 

And now Sept:

NUMBER OF NOTICES FILED TODAY FOR SEPT CONTRACT:  11 NOTICE(S) FOR 1100 OZ  

Total number of notices filed so far for Sept:  537 for 53700 (1.6702 tonnes)

 

 

For silver: 

Sept

24 NOTICE(S) FILED TODAY FOR

120,000 OZ/

Total number of notices filed so far this month: 5635 for 28,125,000 oz

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Bitcoin: BID $6226/OFFER $6310: DOWN  $21(morning)

Bitcoin: BID/ $6210/offer $6295: DOWN  $36(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: $1202.32

NY price  at the same time:$1194.00

 

PREMIUM TO NY SPOT: $8.32

XX

Second gold fix early this morning: $ 1202.14

 

 

USA gold at the exact same time:$1195.40

 

PREMIUM TO NY SPOT:  $6.74

XXXX

 

China is controlling the gold market

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

Let us have a look at the data for today

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In silver, the total OPEN INTEREST FELL BY A CONSIDERABLE 1811 CONTRACTS FROM 209,945 DOWN TO 207,811 DESPITE  YESTERDAY’S  TINY 2 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 JUST LESS THAN 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 A FAIR SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:

37 EFP’S FOR SEPT.  1180 EFP’S FOR DECEMBER AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 1217 CONTRACTS. WITH THE TRANSFER OF 3419 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 1217 EFP CONTRACTS TRANSLATES INTO 6.085MILLION OZ  ACCOMPANYING:

1.THE 2 CENT RISE IN SILVER PRICE AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES WHICH STOOD FOR THE JUNE/2018 COMEX DELIVERY MONTH. (5.420 MILLION OZ);  30.370 MILLION OZ  STANDING FOR DELIVERY IN JULY, FOR AUGUST: 6.065 MILLION OZ AND NOW 30.265 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: 

16,662 CONTRACTS (FOR 6 TRADING DAYS TOTAL 16,662 CONTRACTS) OR 83.310 MILLION OZ: (AVERAGE PER DAY: 2777 CONTRACTS OR 13.885 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF SEPT:  83,310 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 11.90% 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:           2,121.13    MILLION OZ.

ACCUMULATION FOR JAN 2018:                                              236.879     MILLION OZ

ACCUMULATION FOR FEB 2018:                                               244.95        MILLION OZ

ACCUMULATION FOR MARCH 2018:                                        236.67         MILLION OZ

ACCUMULATION FOR APRIL 2018:                                           385.75         MILLION OZ

ACCUMULATION FOR MAY 2018:                                             210.05         MILLION OZ

ACCUMULATION FOR JUNE 2018:                                           345.43         MILLION OZ

ACCUMULATION FOR JULY 2018:                                            172.84          MILLION OZ

ACCUMULATION FOR AUGUST 2018:                                      205.23          MILLION OZ.

RESULT: WE HAD A CONSIDERABLE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1811 DESPITE THE 2 CENT RISE IN SILVER PRICING AT THE COMEX YESTERDAY. THE CME NOTIFIED US THAT WE HAD A FAIR SIZED EFP ISSUANCE OF 1217  CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) .

TODAY WE LOST A SMALL SIZED: 594 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:

i.e 1217 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A DECREASE OF 1811  OI COMEX CONTRACTS. AND ALL OF THIS LOSS IN DEMAND HAPPENED WITH A SMALL 2 CENT RISE 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 30.265 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. 1.039 MILLION OZ TO BE EXACT or 149% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT AUGUST MONTH/ THEY FILED AT THE COMEX: 347 NOTICE(S) FOR 1,735,000 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 30.265 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 FAIR SIZED 2887 CONTRACTS UP TO 470,147 DESPITE THE LOSS IN THE COMEX GOLD PRICE/YESTERDAY’S TRADING (A FALL IN PRICE OF $0.80)THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A GOOD  SIZED 5951 CONTRACTS:

OCTOBER HAD EFP’S ISSUED AND, DECEMBER HAD AN ISSUANCE OF 15941 CONTACTS  AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 470,147. 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 VERY STRONG SIZED OI GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 8828 CONTRACTS:  2887 OI CONTRACTS INCREASED AT THE COMEX AND 5041 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN:  8828 CONTRACTS OR 882,800 OZ = 27.46 TONNES.  AND ALL OF THIS HUGE  DEMAND  OCCURRED WITH A FALL IN THE PRICE OF GOLD/ YESTERDAY TO THE TUNE OF $0.80???

 

 

 

FRIDAY, WE HAD 13,723 EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF SEPT : 49,698 CONTRACTS OR 4,968,000 OZ OR 154.52 TONNES (6 TRADING DAYS AND THUS AVERAGING: 8283 EFP CONTRACTS PER TRADING DAY OR 828,300 OZ/ TRADING DAY),,

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 6 TRADING DAYS IN  TONNES: 154.12 TONNES

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

THUS EFP TRANSFERS REPRESENTS 154/12/2550 x 100% TONNES =  6/04% OF GLOBAL ANNUAL PRODUCTION SO FAR IN JULY ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:     5,351.51*  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 FAIR SIZED INCREASE IN OI AT THE COMEX OF 2887 DESPITE THE LOSS IN PRICING ($0.80 THAT GOLD UNDERTOOK YESTERDAY) // .  WE ALSO HAD A GOOD SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 5941 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 5941 EFP CONTRACTS ISSUED, WE HAD A STRONG GAIN OF 8828 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

5941 CONTRACTS MOVE TO LONDON AND 2887 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 27.46 TONNES). ..AND THIS HUGE DEMAND OCCURRED DESPITE THE  FALL OF $0.80 IN YESTERDAY’S TRADING AT THE COMEX.

 

 

we had: 11 notice(s) filed upon for 1100 oz of gold at the comex.

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

GLD...

WITH GOLD UP $3.00  TODAY: / 

A CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF .26 TONNES AND THAT IS USUALLY TO PAY FOR FEES.

 

 

 

 

/GLD INVENTORY   745.18 TONNES

Inventory rests tonight: 745.18 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 1  CENT TODAY

 

 

WE HAD NO CHANGES FOR SILVER INTO THE SLV INVENTORY

 

 

 

 

/INVENTORY RESTS AT 333.657 MILLION OZ.

 

NOTE THE DIFFERENCE BETWEEN THE GLD AND SLV: THE CROOKS CAN RAID GOLD BECAUSE THEY DO HAVE SOME PHYSICAL.  THEY DO NOT RAID SILVER PROBABLY BECAUSE THERE IS NO REAL SILVER INVENTORIES BEHIND THEM

 

end

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

1. Today, we had the open interest in SILVER FELL BY A CONSIDERABLE SIZED 1677 CONTRACTS from 209,622 DOWN TO  207,945  AND MOVING A LITTLE FURTHER FROM  THE NEW COMEX RECORD SET LAST  MONTH AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  1 1/3 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.  AS YOU CAN SEE, WE HAVE RECORD HIGH OPEN INTERESTS IN SILVER  ACCOMPANIED BY A CONTINUAL LOWER PRICE WHEN THAT RECORD WAS SET…..

 

.

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

 

37 EFP CONTRACTS FOR SEPTEMBER, 1180 CONTRACTS FOR DECEMBER AND  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1217 CONTRACTS . EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  OI LOSS AT THE COMEX OF 1677 CONTRACTS TO THE 1277 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A NET LOSS OF 460 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES: 2.300 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 30.265  MILLION OZ INITIALLY STAND FOR SILVER IN SEPTEMBER….

 

 

RESULT: A SMALL SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 2 CENT PRICING GAIN THAT SILVER UNDERTOOK IN PRICING YESTERDAY. BUT WE ALSO HAD A  GOOD SIZED 1217 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) TUESDAY MORNING/ MONDAY NIGHT: Shanghai closed DOWN 4.68 POINTS OR 0.18%   /Hang Sang CLOSED DOWN 190.87 POINTS OR 0.72%/   / The Nikkei closed UP 291.60 POINTS OR 1.30%/Australia’s all ordinaires CLOSED UP 0.61%  /Chinese yuan (ONSHORE) closed DOWN  at 6.8680 AS POBC RESUMES  ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER/Oil DOWN to 67.89 dollars per barrel for WTI and 77.71 for Brent. Stocks in Europe OPENED RED //.  ONSHORE YUAN CLOSED DOWN AT 6.8680 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8806: 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 is not too thrilled with this:  Trump is weighing sanctions on Chinese senior officials and their companies as well as freezing Chinese assets over in the USA for human rights violations

( zerohedge)

ii)China will ask the WTO to approve their trade sanctions for dumping

( zerohedge)

iii)China responds by halting new USA licenses as the tariff battle intensifies

(courtesy zerohedge)

 

 

4/EUROPEAN AFFAIRS

 

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Syria/USA/Russia

The staged false flag filming of a chemical attack begins in Idlib

( zerohedge)

 

6. GLOBAL ISSUES

 

 

 

7. OIL ISSUES

i)India has a tough decision to make ahead of the sanctions that will be imposed if any nation deals with Iran. The big question is what will India do.  Here is the background

( Tim Daiss/OilPrice.com)

 

ii)Bill Bonner on the 4 big mistakes made by Fed policy.

( Bill Bonner/Bonner and Partners)

8 EMERGING MARKET ISSUES

 

 

9. PHYSICAL MARKETS

i)They do a story on mining safety but will they do a story on the human costs of gold suppression?

( Njini/Bloomberg/GATA)

ii)A huge gold nugget found in an abandoned gold mine in a Western Australia town.  If this starts a gold rush over there, then this could save the town

( London’s daily Mail/GATA)

iii)A good number of 5th century Roman gold coins has been found under an Italian theater.  It seems that somebody forgot to tell their heirs about them

( Charlie Moore/DailyMail/GATA)

d)As we have expected, shown in the graphs reveal huge derivatives in gold and silver soar especially around the time of the smashing.  Who are these guys?  How are they associated with government?

( Chris Powell/GATA)

e)Interesting:  China seeks advise from Wall Street bankers and Barrick gold chairman Thorton

( Tom Mitchell/London’s Financial times/GATA)

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

 

i)Market trading /GOLD/MARKET MOVERS:

MARKET TRADING

 
ii)Market data

a)For the second month in a row, wholesale ‘sales” and inventories missed again this time in July.  It means that the Trump tariffs are beginning to have an effect on trade

( zerohedge)

b)The budget deficit soars to almost 900 billion dollars with one month to go before the beginning of the new fiscal year.  However the true deficit is probably around 1.2 trillion dollars as one must include the auto loans and student loans which are not included because they are an asset as well as a liability.

It seems that David Stockman was correct last year in predicting a true deficit of $1.2 trillion.  What is alarming is the uSA also needs a further 600 billion in funding for the Fed roll offs.  Total amount of bond issuance then for the upcoming year:  North of 1.8 trillion  dollars:  (600 billion dollars for Fed roll off and 1.2 trillion dollars for the true budgetary deficit which needs funding).

( zerohedge)

 

iii)USA ECONOMIC/GENERAL STORIES

a)Trump to unveil a second round of proposed tax cuts hoping to secure the House in the next election
( zerohedge)

b)Florence is now a category 4 hurricane and it is moving slowly. The impact is heading straight for Wilmington NC and could cause massive flooding.(courtesy zerohedge)

c)Is this the real reason that Rahm Emmanuel dropped out of the mayoral race in Chicago:  it is going bust!!

(courtesy TED DABROWSKI/WIRE POINTS)

 

 

 

 

iv)SWAMP STORIES

a)New Strzok -Lisa Page texts discuss an FBI media leak strategy trying to take down Trump. This occurred hours before the first Washington Post bombshell disparaging Carter Page

( zerohedge)

b) King report/swamp stories

 

 

 

Let us head over to the comex:

 

The total gold comex open interest ROSE BY A GOOD SIZED 2887 CONTRACTS UP to an OI level 470,147 DESPITE THE FALL IN THE PRICE OF GOLD ($0.80 LOSS/ YESTERDAY’S COMEX TRADING). FOR TWO YEARS STRAIGHT WE HAVE NOTICED THAT ONE WEEK PRIOR TO FIRST DAY NOTICE OF AN ACTIVE DELIVERY MONTH THE COMEX OPEN INTEREST CONTRACTS AND EFP’S NOTICES EXPONENTIALLY INCREASE AS WELL AS WE WITNESS THE COMEX OPEN INTEREST COLLAPSE. 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 5941 EFCONTRACTS WERE ISSUED:

OCTOBER: 0 EFP’S AND DECEMBER:  5941 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  5941 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 8828 TOTAL CONTRACTS IN THAT 5941 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED 2887 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES:  8828 contracts OR 882,800  OZ OR 27.46 TONNES.

Result: A GOOD SIZED INCREASE IN COMEX OPEN INTEREST DESPITE THE FALL IN PRICE/ YESTERDAY (ENDING UP WITH THE LOSS IN PRICE OF $0.80)THE  TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES:  10.085 OI CONTRACTS..

We are now in the active contract month of SEPTEMBER. For the September contract month, we lost 17 contracts and thus the number of  open interest contracts standing for gold in this front month is 28 contracts. We had 28 notices filed  yesterday so we surprisingly again gained 11 contracts or an additional 1100 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 2568 CONTRACTS DOWN TO 39,270. NOVEMBER SAW A 1 CONTRACT GAIN TO STAND AT 25. DECEMBER SAW ITS OPEN INTEREST RISE BY 3740 CONTRACTS UP TO 362,045.

WE HAD 11 NOTICES FILED AT THE COMEX FOR 1100 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 FELL BY A CONSIDERABLE SIZED 1811 CONTRACTS FROM 209,622 DOWN TO 207,811 (AND FURTHER FROM THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  (THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S OI COMEX LOSS OCCURRED WITH A 2 CENT GAIN IN PRICING.

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF SEPT.AND, WE WERE  INFORMED THAT WE HAD A FAIR SIZED 1217 EFP CONTRACTS:

FOR SEPT:  37 CONTRACTS  AND FOR DECEMBER: 1180 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: 1217.  ON A NET BASIS WE LOST 594 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED 1811 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 1217 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET LOSS ON THE TWO EXCHANGES:   594 CONTRACTS…AND ALL OF THIS LACK OF DEMAND OCCURRED WITH A TINY 2 CENT GAIN

 

 

 

The next active delivery month after August for silver is September and here the OI FELL by 347 contracts DOWN to 452.

We had 347 notices filed on yesterday so we lost 0  number of contracts or NIL ADDITIONAL oz will not  stand at the comex as these guys refused a fiat bonus as well as 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 queue jumping has taken a little holiday.

 

 

 

 

October lost 24  contracts to stand at 606. November saw a gain of 6 contracts to stand at 37.

After Nov., the next big delivery month is December and here the OI fell by 1785 contracts down to 183,067 contracts.

We had 24 notice(s) filed for 120,000 OZ for the SEPTEMBER 2018 COMEX contract for silver

 

 

 

Trading Volumes on the COMEX

 

PRELIMINARY COMEX VOLUME FOR TODAY: 252,084 contracts

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  224,393 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 30.265 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. 10-/2018.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
707.30 oz
jpm
22 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
11 notice(s)
 1100 OZ
No of oz to be served (notices)
17 contracts
(1700 oz)
Total monthly oz gold served (contracts) so far this month
537 notices
53700 OZ
1.6792 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 gold entering the comex vaults.

 

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 withdrawal out of the customer account:
i) Out of jPMorgan:  707.30 oz
22 kilobars
total customer withdrawals:  707.30 oz
we had 0 customer deposit
total customer deposits: nil oz
we had 0 adjustments

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 11 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 6 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 (537) x 100 oz or 53,700 oz, to which we add the difference between the open interest for the front month of SEPT. (28 contracts) minus the number of notices served upon today (11 x 100 oz per contract) equals 55,400 OZ OR 1.723 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 (537 x 100 oz)  + {28)OI for the front month minus the number of notices served upon today (11 x 100 oz )which equals 55,400 oz standing OR 1.723 TONNES in this NON  active delivery month of SEPTEMBER.

Strangely, we added 11 contracts or an additional 1100 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 4.511 TONNES OF REGISTERED COMEX GOLD AVAILABLE FOR DELIVERY AGAINST 1.723 TONNES STANDING FOR SEPTEMBER  

 

 

 

total registered or dealer gold:  145,041.066 oz or   4.511tonnes
total registered and eligible (customer) gold;   8,378,056.516 oz 260.59 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. 10/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
 1,204,808.240 oz
HSBC
Scotia

 

 

Deposits to the Dealer Inventory
nil
oz
Deposits to the Customer Inventory
nil
oz
No of oz served today (contracts)
24
CONTRACT(S)
(120,000 OZ)
No of oz to be served (notices)
428 contract
(2,140,000 oz)
Total monthly oz silver served (contracts) 5625 contracts

(28,125,000 oz)

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

we had 0 inventory movement at the dealer side of things

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

we had 0 deposit into the customer account

i) Into JPMorgan: nil oz

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

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

 

 

ii) Into everybody else:  nil oz

 

 

 

 

 

 

 

 

total customer deposits today: nil oz

we had  2 withdrawals from the customer account;

i) Out of HSBC: 607,308.540 oz

ii) out of Scotia: 597,499.700oz

 

 

 

 

total withdrawals: 1,204,808.230 oz

we had 2  adjustment

i) out of Brinks:  355,966.810oz was adjusted out of the dealer and this landed into the customer account of brinks

ii) Out of Scotia:  797,020.790 oz was adjusted out of the dealer account of Scotia and this landed into the customer account of Scotia

 

 

 

 

 

 

 

total dealer silver:  89.904 million

total dealer + customer silver:  295.031 million oz

The total number of notices filed today for the SEPTEMBER. contract month is represented by 24 contract(s) FOR 120,000 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 5625 x 5,000 oz = 28,125,000 oz to which we add the difference between the open interest for the front month of SEPTEMBER. (452) and the number of notices served upon today (24 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the SEPT/2018 contract month: 5625(notices served so far)x 5000 oz + OI for front month of SEPTEMBER(452) -number of notices served upon today (28)x 5000 oz equals 30,265,000 oz of silver standing for the SEPT contract month.  This is a huge number of oz standing!!

We LOST 0 contracts or an additional nil oz will stand at the comex as these guy refused to morph into London based forwards as well as accepting a fiat bonus for their effort.

 

 

 

 

 

 

 

 

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ESTIMATED VOLUME FOR TODAY:  58,342 CONTRACTS   

 

 

CONFIRMED VOLUME FOR YESTERDAY: 81,070 CONTRACTS..

 

 

YESTERDAY’S CONFIRMED VOLUME OF 81070CONTRACTS EQUATES TO 405 million OZ  OR 57.9% 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 -4.02% (SEPT.11/2018)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -1.67% to NAV (SEPT 11/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -4.02%-/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 11.61/DISCOUNT 4.26.

END

And now the Gold inventory at the GLD/

SEPT 11/WITH GOLD UP $3.00 TODAY: A SMALL CHANGE IN GOLD INVENTORY AT THE GLD; A WITHDRAWAL OF .26 TONNES/INVENTORY RESTS AT 745.18 TONNES

SEPT 10/WITH GOLD DOWN 80 CENTS/ANOTHER HUGE 1.44 TONNES OF WITHDRAWAL FROM THE GLD/INVENTORY RESTS AT 745.44 TONNES

SEPT 7/WITH GOLD DOWN $3.75: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 746.92 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.

 

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SEPT 11/2018/ Inventory rests tonight at 745.18 tonnes

*IN LAST 453 TRADING DAYS: 185.53 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 353 TRADING DAYS: A NET 28,99 TONNES HAVE NOW BEEN REMOVED FROM GLD INVENTORY.

 

end

 

Now the SLV Inventory/

SEPT 11./WITH SILVER DOWN ONE CENT TODAY/WE HAD NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 333.657 MILLION OZ/

SEPT 10.WITH SILVER DOWN 2 CENTS TODAY, WE HAD ANOTHER DEPOSIT OF 940,000 OZ/INVENTORY RESTS AT 333.657 MILLION OZ/

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

 

 

 

SEPT 11/2018:

Inventory 333.657 MILLION OZ

 

6 Month MM GOFO 2.02/ and libor 6 month duration 2.55

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

G0FO+ 2.02

 

libor 2.55 FOR 6 MONTHS/

GOLD LENDING RATE: .53%

XXXXXXXX

12 Month MM GOFO
+ 2.46%

LIBOR FOR 12 MONTH DURATION: 2.86

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.40

end

 

Major gold/silver trading /commentaries for TUESDAY

GOLDCORE/BLOG/MARK O’BYRNE.

 

Ten Years Since Lehman: Biggest Driver of 2008 Financial Crisis Has Only Got Worse

by John Stepek of Money Week

– The “Lehman moment”… could it happen again?
– The finance industry is infested with moral hazard
– Even more moral hazard today sowing seeds of next crisis
– “Next crisis will not look the same as the 2008 crisis”

Protestors hold signs behind Richard Fuld, Chairman and Chief Executive of Lehman Brothers Holdings after its collapse led to the last global financial crisis. REUTERS/Jonathan Ernst/File Photo

 

A decade ago this week, in the US, the government had just nationalised government-sponsored mortgage lenders Fannie Mae and Freddie Mac.

In the UK, the then-chancellor, Alistair Darling, had, at the tail-end of August, given The Guardian one of the most honest interviews ever given by a serving Cabinet minister, in which he warned that we were facing the worst financial crisis in 60 years.

In short, we all knew things were turning bad.

But the full-on tipping point came with the demise of Lehman Brothers, which was barrelling towards the end of its existence.

This week, ahead of the tenth anniversary of the “Lehman moment”, we’re going to be looking at what happened, what’s changed, and whether it could happen again.

Today I want to start with one of the most important concepts you have to understand in order to grasp what went on.

That’s a phenomenon with the rather curmudgeonly name of “moral hazard”.
The finance industry is infested with moral hazard
The notion of moral hazard originated in the insurance industry. It’s a very simple concept. It refers to the danger that if someone is insured against a loss, then they won’t take the necessary steps to prevent that loss from happening in the first place.

So, used more widely, moral hazard is what you get when an individual’s actions are divorced from their consequences. Or as Paul Krugman (loosely paraphrased) puts it, it’s when you take the risk, but someone else bears the cost.

This one notion explains why the entire financial crisis happened.

Human beings respond to incentives. If you pay them to take risk and shield them from the lion’s share of the consequences, then you will get a system that skews towards careless risk-taking.

Let’s start with the finance industry. The finance industry runs almost entirely on Other People’s Money (OPM). That creates an immediate problem. The finance industry likes to present itself as a steward of OPM, from institutional investors to individuals. Instead, it more often cares about getting as big a chunk of that OPM as it can. The more it has, the more fees it can extract from it.

That incentivises the creation of complicated, fee-heavy products. It incentivises the expansion of balance sheets. It incentivises short-term behaviour.

And it incentivises careless expansionism, because caution is penalised if you are trying to win business in a “race to the bottom” environment – note that financial industry whistleblowers were fired or victimised in most cases ahead of the financial crisis.

“Career risk” – whereby falling behind your peers in a booming market means getting fired – militates against a more balanced approach. And a lack of genuine “skin in the game” – investing with your own money – means that the finance industry gets the upside with very little of the downside.

If you get paid a life-changing sum on an annual basis then does it matter if you get fired and the value of your shares collapses? Not really.

As Jimmy Cayne, the bridge-playing, dope-smoking ex-CEO of Bear Stearns, put it to finance writer William D Cohan, on the consequences for him of the financial crisis: “The only people [who] are going to suffer are my heirs, not me… Because when you have a billion six and you lose a billion, you’re not exactly, like, crippled, right?”

You can dismiss some of that as the macho bravado of a wounded Wall Street ego. But the basic point is true.

Ex-Lehman Brothers CEO Dick Fuld might cry himself to sleep every night, mourning his lost reputation (I don’t think he does, by the way, although it clearly still rankles with the man), but he’s crying himself to sleep on a big golden pillow.

Full article courtesy of Money Week here

 


LATEST VIDEO FROM GOLDCORE

Gold Surges to Record Highs in Emerging Market Currencies

 

News and Commentary

Gold slips as dollar firms on Sino-U.S. trade tensions (Reuters.com)

Nikkei jumps, but other Asian markets remain sluggish (MarketWatch.com)

Gold erases daily losses and approaches $1,200 (FXStreet.com)

S&P 500, Nasdaq look to snap 4-day losing streak; energy among biggest gainers (MarketWatch.com)

Europe leads fightback after Asian shares floored again (Reuters.com)


Source: Bloomberg

Ten years on: the biggest driver of the 2008 financial crisis has only got worse (MoneyWeek.com)

Precious metals derivatives soar from $2.5 billion at the end of 2001 to nearly $50 billion in last quarter (Gata.org)

GOLD: The Day of Reckoning Approaches (Youtube.com)

From Buenos Aires To Nashville: The Emerging Market Crisis Spreads From Periphery To Core (DollarCollapse.com)

New Zealand Is The Doomsday Escape Plan For Super Rich of Silicon Valley (Bloomberg.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA AM)

10 Sep: USD 1,195.80, GBP 923.28 & EUR 1,032.45 per ounce
07 Sep: USD 1,200.75, GBP 928.30 & EUR 1,031.32 per ounce
06 Sep: USD 1,204.30, GBP 931.65 & EUR 1,035.82 per ounce
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

Silver Prices (LBMA)

10 Sep: USD 14.22, GBP 10.99 & EUR 12.28 per ounce
07 Sep: USD 14.19, GBP 10.90 & EUR 12.20 per ounce
06 Sep: USD 14.27, GBP 11.03 & EUR 12.27 per ounce
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


Recent Market Updates

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– Gold Remains An “Excellent Way to Hedge” for Longer Term – BNP Interview
– Video: Gold Surges To Record Highs In Emerging Market Currencies – New Highs In USD, EUR, GBP In the Coming Months?
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– This Week’s Golden Nuggets

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Mark O’Byrne
Executive Director

 

 

 
 
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(Andrew Maguire)

 Dear Harvey Organ,

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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:

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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.

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Kinesis Webinar

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END

 

The following is self explanatory

(courtesy GATA/Chris Powell and Harvey Organ)

GATA asks bank regulator to check risks of gold

futures maneuver

 Section: 

12:21p ET Sunday, June 10, 2018

Dear Friend of GATA and Gold:

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

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

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

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

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

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

* * *

May 5, 2018

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

Dear Comptroller Otting:

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

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

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

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

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

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

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

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

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

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

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

Sincerely,

CHRIS POWELL
Secretary/Treasurer

HARVEY ORGAN
Consultant

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

end

Finally, they replied and it was a complete brush off

(courtesy zerohedge)

Currency comptroller brushes off GATA’s inquiry on

gold, silver EFPs

 Section: 

11:35a ET Friday, August 10, 2018

Dear Friend of GATA and Gold:

The U.S. comptroller of the currency, a bank regulator, has declined GATA’s request to inquire into the strange explosion of the use of the emergency procedure of “exchange for physicals” in the settlement by banks of the gold and silver futures contracts they have sold on the New York Commodities Exchange.

Your secretary/treasurer and GATA’s consultant about the Comex, Harvey Organ, wrote to the comptroller, James M. Otting, on May 5, calling attention to the recent enormous use of EFPs, which implies derivatives risks being undertaken by U.S. banks that could cause the banks to fail:

http://www.gata.org/node/18303

“Our concern is that your office may not be aware of large unreported derivative exposure by banks,” GATA wrote.

As months passed without any acknowledgment from the comptroller’s office, your secretary/treasurer appealed to his U.S. representative, John B. Larson, D-Connecticut, to ask the comptroller’s office to reply. The congressman’s office made a second inquiry on Monday this week and today the comptroller’s office provided Larson with a copy of a reply written and mailed Wednesday.

The comptroller’s reply, signed by the deputy comptroller for public affairs, Bryan Hubbard, said only that the comptroller’s office has “dedicated examiners” at the largest banks who “continuously evaluate the credit, market, operational, reputation, and compliance risks of bank trading and derivative activities.”

The reply did not say anything about the use of the “exchange for physicals” procedure for settling futures contracts. That is, the reply was a begrudged brushoff and GATA’s letter would have been ignored completely if not for Representative Larson’s repeated intervention.

Of course GATA hardly expected a conscientious reply to its letter, the comptroller’s office being not an independent regulator but part of the Treasury Department, whose mandate includes administration of the Gold Reserve Act of 1934, which, as amended in the 1970s, authorizes the department’s Exchange Stabilization Fund to secretly intervene in and rig any market in the world, directly or through intermediaries:

https://www.treasury.gov/resource-center/international/ESF/Pages/esf-ind…

But there’s always value in demonstrating government’s lack of candor about what it is doing, especially in regard to the monetary metals.

A PDF copy of the reply from the comptroller’s office is posted at GATA’s internet site here:

http://www.gata.org/files/ComptrollerOfCurrencyReply-08-08-2018.pdf

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

END

 

They do a story on mining safety but will they do a story on the human costs of gold suppression?

(courtesy Njini/Bloomberg/GATA)

When will Bloomberg do a story about the human costs of gold price suppression?

 Section: 

And when will South Africa’s own government care about that issue?

* * *

‘Will I Come Back Dead?’ Human Costs of South African Gold

By Felix Njini
Bloomberg News
Sunday, September 9, 2018

After more than two decades of improving mine safety since the end of apartheid, South Africa’s progress has stalled with an increase in gold-mining deaths.

More than 50 people have died in the country’s mines in 2018, roughly the same number as this time last year. While annual death tolls are far lower than the 615 in recorded in 1993 — the last full year of apartheid — 2017 witnessed the first rise in 10 years.

Most of the gold mining fatalities are due to workers being crushed under falling rocks, caused by more frequent tremors as companies dig deeper for the precious metal, in some cases reaching depths of more than 4 kilometers (2.5 miles). The government is investigating Sibanye Gold Ltd.’s operations, where over half the gold mining deaths occurred this year.

“When you wake up in the morning you think, will I come back dead or alive?” said Sivelly Mangola, a 40-year-old rock drill operator at Sibanye’s Driefontein mine who was once trapped for 30 minutes by a rockfall. “It’s traumatizing.” …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-09-09/-will-i-come-back-dea…

END

A huge gold nugget found in an abandoned gold mine in a Western Australia town.  If this starts a gold rush over there, then this could save the town

(courtesy London’s daily Mail/GATA)

Huge gold nuggets could save mining town in western

Australia

 Section: 

‘There Was Just Gold Everywhere, as Far as You Could See’ — Miners Discover 90 kg of the Precious Metal — Worth a Whopping $15 Million — in Just Four Days

By Kelsey Wilkie
Daily Mail, London
Sunday, September 9, 2018

A $15 million gold discovery could change the fate of a struggling Western Australian town.

Workers at the Beta Hunt mine in Kambalda, 630 kilometers east of Perth, unearthed the gold in a “once in a lifetime discovery.”

The gold was found about 500 meters from the surface in an area 3 meters wide and 3 meters high.

The discovery in a town that was built on the nickel mining has been described as “incredibly unique.”

Kambalda has been fighting for survival, with low nickel prices forcing the closure of four large mines in just three years, the Australian Broadcasting Co. reported.

Miner Henry Dole nearly fell over when they made the discovery during a “business as usual” day. …

… For the remainder of the report:

https://www.dailymail.co.uk/news/article-6149359/Miners-discover-15milli…

END

A good number of 5th century Roman gold coins has been found under an Italian theater.  It seems that somebody forgot to tell their heirs about them

(courtesy Charlie Moore/DailyMail/GATA)

Pristine 5th-century gold coins found under Italian theater

 Section: 

Looks like somebody forgot to tell his heirs about them before he died.

* * *

By Charlie Moore
Daily Mail, London
Sunday, September 9, 2018

A stash of fifth-century gold coins worth millions has been found buried in a pot under an Italian theatre.

Builders demolishing the former Cressoni theater in Como were stunned to discover the cache last Wednesday.

The Roman coins will be examined and dated before ending up in a museum, officials said.

According to Italian media, the coins could be worth millions of euros.

Local archaeologist Luca Rinaldi told Qui Como: “We cannot speak of a precise value because they are not a marketable commodity, but certainly it is an exceptional find and therefore of inestimable value.”

He said the coins dated from the fifth century, adding: “The state of conservation so good that even dating should be fast enough.” …

… For the remainder of the report:

https://www.dailymail.co.uk/news/article-6148791/In-mint-condition-Huge-…

end

My goodness: is the iMF stating that they are running out of paper?

(courtesy Robb/MarketWatch/GATA

IMF’s former chief economist couldn’t be more naive

 Section: 

Acting through intermediaries, the Fed essentially already does what he proposes.

* * *

Fed Should Buy Stocks If There Is Another Steep Recession, IMF’s Former Chief Economist Says

By Greg Robb
MarketWatch.com, New York
Monday, September 10, 2018

The Federal Reserve buying stocks? How about financing the federal deficit? Or buying goods?

These were some of the suggestions for combating the next severe recession given to the central bank by former International Monetary Fund chief economist Olivier Blanchard at the Boston Fed’s monetary policy conference over the weekend.

There is a general sense the Fed has to rethink its approach to combating recessions given the low-interest-rate environment that is persisting.

The problem facing the central bank is easy to describe.

The Fed’s benchmark short-term fed funds rate is now around 2.875 percent. That’s not so much room to cut rates in a downturn, considering that in a typical post-World War II recession, the Fed slashed rates by 5-6 percentage points to turn the economy around after a recession.

Blanchard said the Fed probably has enough tools to handle a run-of-the-mill recession. But if it is another severe recession like the financial crisis, Blanchard urged the central bank to resort to previously unheard of policies. …

… For the remainder of the report:

https://www.marketwatch.com/story/fed-told-it-should-buy-stocks-if-there…

* * *

end

As we have expected, shown in the graphs reveal huge derivatives in gold and silver soar especially around the time of the smashing.  Who are these guys?  How are they associated with government?

(courtesy Chris Powell/GATA)

Precious metals derivatives soar, so who ARE those guys?

 Section: 

8:48p ET Monday, September 10, 2018

Dear Friend of GATA and Gold:

The quarterly report from the U.S. Office of the Comptroller of the Currency showing bank trading revenue, published today and called to GATA’s attention by our friend J.H., contains a remarkable graph showing the increase in the notional value of precious metals derivatives held by “U.S. commercial banks and savings associations” quarter by quarter since 2001.

These derivatives, according to the chart, have increased from about $2.5 billion at the end of 2001 to nearly $50 billion in the quarter ended in July this year.

The chart is excerpted from the report at GATA’s internet site here:

http://www.gata.org/files/PMDerivatives-Q2-2018.pdf

The full report is posted at GATA’s internet site here —

http://www.gata.org/files/OCC-DerivativesReport-Q2-2018.pdf

— and at the OCC’s internet site here:

https://www.occ.treas.gov/topics/capital-markets/financial-markets/deriv…

Perhaps not coincidentally, the value of the precious metals derivatives jumps markedly in 2010 just before the seven-year smashing of monetary metals prices that began in 2011.

Anybody connected with the monetary metals business who is not on the status quo’s take and who looked at the chart might ask the question famously posed by Paul Newman’s Butch Cassidy in the 1969 film “Butch Cassidy and the Sundance Kid”:

“Who are those guys?”

https://www.youtube.com/watch?v=RU3jMgaZ2uI

That is, who are these commercial banks and savings associations and what are their connections to the U.S. government? Are they, for example, mainly primary dealers in U.S. government securities, formally agents of the Treasury Department and Federal Reserve?

Or do they include instead, say, lots of community institutions like the famous Bailey Bros. Building & Loan of Bedford Falls, New York, in the 1946 movie that romanticized locally based banking, “It’s a Wonderful Life”?

This might be an interesting course of inquiry for financial journalism, if there was any.

It might be a compelling course of inquiry for a world gold council or a silver miners association, if there were such organizations and not just shams using similar names.

Investment houses that have put their clients’ money into the monetary metals and the companies that mine them might do well to inquire too if they ever became more interested in creating value for shareholders than mining them for management fees.

Market analysts who chart prices with a mystical belief in the predictive power of “waves” and “candlesticks” might come closer to reality by wondering whether the derivative chart is exerting more powerful magic with the help of entities authorized to create infinite money and deploy it in secret.

Of course anyone who suggests that there might be institutions called central banks and an association of central banks called something like the Bank for International Settlements risks being derided as a “conspiracy theorist.” But then government operating in secret is the very definition of “conspiracy,” if language itself is to retain any meaning.

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

end

Interesting:  China seeks advise from Wall Street bankers and Barrick gold chairman Thorton

(courtesy Tom Mitchell/London’s Financial times/GATA)

China seeks advice from Wall Street bankers and Barrick

Chairman Thornton

 Section: 

Will he recommend buying more gold to democratize the world financial system?

* * *

Beijing Summons Top Wall Street Bankers for Tariff Talks

By Tom Mitchell
Financial Times, London
Sunday, September 9, 2018

The Chinese government is inviting Wall Street’s top bankers to a hastily arranged meeting in Beijing as President Donald Trump threatens to impose punitive tariffs on all Chinese exports to the United States.

According to three people briefed on the initiative, Chinese Communist Party officials have invited the heads of America’s leading financial institutions to attend a “China-U.S. Financial Roundtable” in Beijing on September 16, followed by a meeting with Wang Qishan, vice-president of China

Chinese officials hope the new group, which will be jointly chaired by Zhou Xiaochuan, a former Chinese central bank governor, and John Thornton, the former Goldman Sachs executive who now chairs mining group Barrick Gold, will meet every six months to discuss Sino-U.S. relations and advise the Chinese government on financial and economic reforms.

… For the remainder of the report:

https://www.ft.com/content/c0034cba-b2ca-11e8-99ca-68cf89602132

___________________________________________________________________________________________________________________________________________________________________________________

Your early TUESDAY 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 6.8680/HUGE DEVALUATION FOR THE PAST FOUR WEEKS RESUMES/CHINESE COMING TO USA FOR TRADE TALKS IN NOVEMBER //OFFSHORE YUAN:  6.8808   /shanghai bourse CLOSED DOWN 4.68 POINTS OR 0.18% /HANG SANG CLOSED DOWN 190.87 POINTS OR 0.72%
2. Nikkei closed UP 291.60 POINTS OR 1.30%/USA: YEN RISES TO 111.29/

3. Europe stocks OPENED  IN THE RED  

 

/USA dollar index RISES TO 95.22/Euro FALLS TO 1.1589

3b Japan 10 year bond yield: REMAINS AT. +.12/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 111.29/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET

 

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 67/71  and Brent: 77.89

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 +.420%/Italian 10 yr bond yield DOWN to 2.88% /SPAIN 10 YR BOND YIELD UP TO 1.45%

3j Greek 10 year bond yield FALLS TO : 4.09

3k Gold at $1192.70 silver at:14.09   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 44 /100 in roubles/dollar) 70.10

3m oil into the 67 dollar handle for WTI and 77 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 111.29DESTROYING 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 0.9732 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1278 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 +0.42%

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 2.95% early this morning. Thirty year rate at 3.08%

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

6.  TURKISH LIRA:  UP  TO 6.4713

Global Stocks, Futures Slide As China Shatters Trade Calm

Just when it seemed that the tenuous trade ceasefire between the US and China could result in more stable market sentiment, European stocks dropped -0.5% to session lows led by mining and autos, with S&P futures sliding as volume surged, joining Asia in the red after Reuters reported that China would ask the World Trade Organization for permission to impose trade sanctions on the U.S. rekindling fears over trade relations among the world’s two biggest economies.

The latest trade rumbling pushed the MSCI index of global stocks into the red, as Asian markets dropped for the ninth straight day. The MSCI index of Asia-Pacific shares ex-Japan eased 0.05 percent, but held just above last July’s lows.

There was a hint that China may do something earlier when the Shanghai Composite dipped 0.2 percent, with the index fading all gains set during the morning session. Chinese automakers were among the worst performers in Hong Kong after August sales dropped from a year earlier, adding to investor jitters about the vehicle market’s outlook. Local auto giant Geely Auto fell as much as 4.6% to lowest since June 2017.

After opening broadly higher, European shares were down on the day, with the Stoxx 600 sliding as much as 0.5%, while the Stoxx 600 basic resources index dropped 0.7%, entering a bear market down 20% from its June 6 peak, amid speculation that winter curbs on mills may be milder than had been expected, increasing the possibility of increased supply.

The pound initially rose to five-week highs against the dollar, hitting a high of $1.3087, after the European Union’s chief negotiator Michel Barnier said on Monday a Brexit deal was possible within weeks. Sterling had risen 0.8 percent on Monday.

For the second time in less than a week Barnier has signaled his desire to push ahead on the Brexit negotiations, less than seven months before the United Kingdom is slated to leave the European Union on March 29, 2019. “The Barnier headlines mean there’s a lower hurdle for getting a separation deal done by the end of the year, when the discussion about the future relationship can begin,” said CMC Markets analyst Michael Hewson.

However, after the Reuters China WTO report, cable – like all other risk assets – slumped as the dollar surged to session highs, while the euro gave up all earlier gains and hit a new day low of 1.1576 as US traders walked in.

As a result, emerging market currencies pared earlier gains with a broad index down near 16-month lows and the Indian rupee near a record trough of 72.455 per dollar, while their shares declined. Meanwhile, U.S. two-year Treasury yields held close to their highest level in a decade in the run-up to an anticipated Federal Reserve interest-rate hike this month.

Japan’s currency fell for a third day versus the dollar as Japanese shares rallied. Norway’s krone extended its advance after a business survey by the central bank confirmed the case for tighter monetary policy, starting with a hike next week.

“Weakness is set to remain a recurring theme amid global trade tensions, a broadly stronger dollar and prospects of higher U.S. interest rates,” said Lukman Otunuga, a research analyst at broker FXTM. “With turmoil in Turkey and Argentina triggering contagion fears, appetite for emerging market assets and currencies is likely to continue diminishing.”

In addition to ongoing trade skirmishes, the memory of summertime volatility and weakness in commodities also still provides plenty of reasons for caution as investors brace for meetings of central banks of Argentina, Turkey and Russia this week.

In the latest Brexit news, UK Conservative Party Brexiteers are said to have failed to reach an agreement on an alternate Brexit plan with one Eurosceptic close to the matter stating that the group was not a homogenous one per the FT. An earlier story in the Times had reported that Jacob Rees-Mogg believes that a no-deal Brexit would lift the UK economy by GBP 1.1trl over 15 years and that such a plan is preferable to PM May’s Chequers plan. Former UK Foreign Minister Johnson will continue to “throw rocks” at PM May’s Chequers plan ahead of the Tory conference but has no plans to launch an immediate leadership bid amid the fallout from his personal life, his close allies have claimed.

In geopolitics, the US conducted discussions with UK and France regarding potential Syria strikes. North Korean Leader Kim offered to dismantle nuclear weapons program within 2 years, according to reports citing US National Security Adviser Bolton.

In commodities, WTI held near $68 a barrel amid speculation whether hurricane Florence approaching the U.S. East Coast would disrupt supplies and drive prices higher. Argentina’s central bank is set to hold its key rate at 60 percent today — the highest in the world — and officials may signal some relief for the economy and the peso.

Economic data include JOLTS job openings, wholesale inventories and small business optimism survey.

Market Snapshot

  • S&P 500 futures down 0.2% at 2,873.25
  • STOXX Europe 600 down 0.1% to 375.05
  • MXAP down 0.02% to 159.02
  • MXAPJ down 0.3% to 508.66
  • Nikkei up 1.3% to 22,664.69
  • Topix up 0.7% to 1,698.91
  • Hang Seng Index down 0.7% to 26,422.55
  • Shanghai Composite down 0.2% to 2,664.80
  • Sensex down 0.5% to 37,725.50
  • Australia S&P/ASX 200 up 0.6% to 6,179.68
  • Kospi down 0.2% to 2,283.20
  • German 10Y yield rose 2.5 bps to 0.426%
  • Euro up 0.3% to $1.1628
  • Brent Futures up 0.9% to $78.06/bbl
  • Italian 10Y yield fell 12.3 bps to 2.548%
  • Spanish 10Y yield unchanged at 1.454%
  • Brent Futures up 0.9% to $78.06/bbl
  • Gold spot up 0.01% to $1,196.05
  • U.S. Dollar Index down 0.1% to 95.01

Top Overnight News

  • China is said to ask WTO for authorization to impose trade sanctions on U.S., citing U.S.’s non-compliance in 2017 trade dispute ruling, Reuters reports, citing a meeting agenda; China’s request relates to dumping dispute initiated in 2013, which China said at the time related to goods with an annual export value of $8.4b
  • Italian Foreign Minister Enzo Moavero Milanesi says during Radio Capital interview that he doesn’t “expect a clash” between Italy and the EU over the budget if there is “enough flexibility” in the dialog
  • Japan’s Deputy Prime Minister Taro Aso says no schedule has been decided for the next economic dialogue with U.S. at this point and that he still sees no need for a free trade agreement between the U.S. and Japan
  • Hurricane Florence continued to move toward the U.S. East Coast, poised to become the strongest in almost 30 years to hit the Carolinas as more than one million people began fleeing the American coastline
  • Brexit-backing lawmakers in Theresa May’s divided Conservative Party are gearing up for another fight with the prime minister, this time over how EU law will apply in Britain after it has left the bloc
  • U.K. labor unions voted for a campaign against any Brexit deal reached by Prime Minister Theresa May that fails to address the needs of working people — with a referendum central to their strategy for the fight
  • Australian business confidence slumped to a two-year low in August, a period marked by upheaval in the government that saw Malcolm Turnbull ousted as prime minister
  • Oil held below $68 a barrel as investors assessed whether higher OPEC production can offset a potential global supply crunch sparked by sanctions on Iranian crude
  • Russian prime minister Vladimir Putin urged policy makers to take a more “active position” in addressing borrowing costs that are still high relative to inflation

Asian equity markets traded mixed amid a similar performance in US where most majors finished positively as tariff concerns took a back seat with sentiment supported by news of the GOP releasing plans for a fresh round of tax cuts and as participants also focused on Brexit-related optimism. ASX 200 (+0.6%) was lifted by broad strength across telecoms, tech, energy and financials, while Nikkei 225 (+1.3%) outperformed amid currency moves and M&A news with Renesas to purchase US chipmaker IDT for over USD 6.7bln. Elsewhere, Shanghai Comp. (-0.2%) and Hang Seng (-0.7%) were choppy in which the latter flirted with bear market territory amid ongoing trade uncertainty and continued liquidity inaction by the PBoC. Finally, 10yr JGBs were relatively flat as focus centred on outperformance of riskier assets in Japan and as a mixed 30yr auction also failed to drive price action.

Top Asian News

  • BOJ Seen Willing to Reduce Stocks Target If Buying Drops a Lot
  • Singapore’s Builders Seen Facing Debt Troubles Amid Curbs
  • Tencent Steps Up Share Buyback in First Repurchases 2014
  • China’s Big Insurers Put Faith in Small-Cap Stocks Revival

European equities trade on the backfoot (Euro Stoxx 50 -0.5%) as losses in the continent accelerated amid rising trade tensions following reports China are to ask the WTO to authorise trade sanctions on the US. UK’s FTSE 100 is subdued by a firmer pound  as GBP/USD sits above 1.3000. Sectors are broadly in the red with material names hit the hardest. One to watch on the M&A front, UniCredit (-1.3%), source reports suggest that the company could consider a tie-up with BBVA (+0.2%) or ABN AMRO (+0.5%).

Top European News

  • U.K. Wages Climb More Than Forecast in Tight Labor Market
  • Barnier Sees Deal as Brexiteers Brace for Fight: Brexit Bulletin
  • Partners Group Jumps as Fees Drive Another Beat on Earnings
  • Norway Plans Seismic Study of Russia Maritime Border Area: DN

In FX, it’s a dead heat between the single currency and Sterling in terms of gains relative to the Dollar and other rival currencies, with the former buoyed by more promises from the Italian Government to adhere to the EU budget limits, and the latter still riding high on rising Brexit deal expectations. Eur/Usd gained momentum above 1.1600 after several failed attempts, but faded just ahead of 1.1650 and subsequently slipped back below the figure, as Eur/Gbp pivots around 0.8900 and Cable tests chart resistance around 1.3083-85 that stands in the way of 1.3100. Note, the Pound got a further fleeting boost from above forecast UK wage data over sub-consensus jobs readings on balance, but then slumped aggressively to just under 1.3000 amidst various reports about 1.3100 barrier defence offers in decent size, stops, technical selling and even ‘fat finger’ trades (in spot and futures) before some calm was restored.  SEK/NOK – The Scandi crowns are not slipping too far from recent peaks vs the Eur or Usd, as the Riksbank maintains a broadly upbeat tone, albeit after adjusted rate hike guidance last week, and the latest Norges Bank regional survey reveals a robust outlook for output following strength in the latest quarter. EM – Somewhat out of the limelight for once, but far from out of sight and clawing back more losses vs a generally soft Usd, with the underperforming Rub also firmer even though sanctions loom and the Russian Government continues to urge the CBR to hold fire on rate hikes. Rouble now pivoting 70.0000 vs circa 70.8400 at one stage on Monday.

In commodities, WTI and Brent futures trade marginally higher with the latter dipping below USD 78/bbl in recent trade. Participants will be closely monitoring hurricane developments in the Atlantic with Hurricane Florence prompting mandatory evacuations in the southern East Coast in the US as it nears a category 5 strength. Russian Energy Minister Novak stated overnight that OPEC and allies are to discuss cooperation after 2018 in Algeria while adding OPEC+ members may sign a new long-term cooperation deal in December. Traders will also keep an eye on the latest API crude inventory figures released later today. Elsewhere, Gold pared back earlier gains, currently trading flat, while copper takes a breather from recent losses.

On today’s calendar, we’ll get the July JOLTS survey and July wholesale inventories and trade sales numbers. Away from the data Italy’s Finance Minister Giovanni Tria is due to speak this morning (10.50am BST) at an event in Rome while the ECB’s Nouy is due to speak in at the European Parliament. The Argentina Central Bank meeting is also due, although no change in policy is expected. European Parliament is also due to debate today about possible sanctions against Hungary while Russia President Putin is due to meet China President Xi Jinping at the Eastern Economic Forum.

US Event Calendar

  • 10am: JOLTS Job Openings, est. 6,675, prior 6,662
  • 10am: Wholesale Inventories MoM, est. 0.65%, prior 0.7%
  • 10am: Wholesale Trade Sales MoM, est. 0.1%, prior -0.1%

DB’s Jim Reid concludes the overnight wrap

Markets have generally started the week in a better mood than last week. Last night the S&P 500 and NASDAQ snapped four days of consecutive losses last week to end +0.19% and +0.27% respectively. The NYFANG edged +0.17% to snap a six day losing streak, while prior to this in Europe the STOXX 600 (+0.47%) also climbed by the most in a difficult two weeks.

To be fair EM behaving itself, Brexit headlines more positive, and trade headlines (certainly with the US and EU as you’ll see below) being more upbeat helped but it was the European periphery which really drove things. Indeed the FTSE MIB (+2.30%) and Greek Athex (+2.51%) rallied by the most since 11 June and 1 June, respectively, while the IBEX (+1.09%) and Portugal General (+0.84%) also saw steep legs higher. The weekend comments from Italy’s Finance Minister Giovanni Tria which we noted yesterday as well as Greek PM Alexis Tsipras announcing a package of tax relief measures over the weekend appeared to be the catalysts with banks also a beneficiary. European Banks rallied +1.55% for the biggest gain in 34 trading days with the peripheral banks making up eight of the top ten biggest movers. It was a similar story in bonds with BTPs 12.5bps lower in yield at 2.902% and taking them to the lowest since August 9th while 10yr yields in Greece, Portugal and Spain were 9.3bps, 1.9bps and 1.0bp lower respectively. Treasuries rallied a paltry 0.8bps and traded in a range of 2.0bps on the day, the second tightest of the year, while Bund yields rose a rather dull 1.4bps. So Italy was the main mover in govies. As you’ll see at the end Tria speaks again just before lunch today so one to keep an eye on.

As noted at the top, helping risk sentiment at the margin were some of the headlines out of the meeting between Robert Lighthizer – the US Trade Representative – and Cecilia Malmstrom – the EU Commissioner for Trade. A press release from the USTR confirmed the meeting – which was scheduled as part of improving trade relations – as being “constructive” and that the two representatives will meet again at the end of this month to continue talks. The statement went as far as saying that professional staff will next month “hold further discussions on identifying and reducing tariff and non-tariff barriers to
trade”. So some potentially positive developments and at the least suggesting that the trade war between the US and Europe is on hold for now.

Meanwhile the main focus in FX yesterday, rather than EM, was instead the decent rally for Sterling which bounced following some of the latest Brexit newsflow. Last night the Pound closed up +0.82% versus the Dollar and is back to the highest since August 1st. EU Chief Brexit Negotiator Michel Barnier said, at a press conference in Slovenia, that it was “realistic” and “possible” to get a Brexit deal done by the end of November. Comments from Barnier have been getting incrementally more positive towards a deal being reached so it wasn’t a great surprise to see these headlines. As for timing a possible one-off summit on November 13th now appears most likely for a deal with two EU summits prior to this (one next week and one in October). That move for Sterling meant the FTSE 100 (+0.02%) was the relative underperformer yesterday in equities.

This morning in Asia the positive tone has for the most part continued in markets. The Nikkei (+1.20%) in particular has surged higher helped partly by a weaker Yen, while the Hang Seng (+0.07%) is holding firm despite being on the edge of entering a bear market, and the Shanghai Comp (+0.30%) and ASX (+0.61%) are also firmer. US equity futures are also pointing towards another positive open while bonds and FX have otherwise been fairly quiet. That reflects a mostly non-eventful overnight session for news however the FT is reporting that Mexico is open to moving ahead with signing a bilateral trade deal with the US should Canada not reach a deal on NAFTA. Meanwhile, Japan’s Deputy Prime Minsiter Taro Aso said that no schedule has been decided for the next economic dialogue with US at this point while adding that he still sees no need for a free trade agreement between the U.S. and Japan.

In other news, it wasn’t a particularly busy day for data yesterday with most of the focus also on the UK. The new monthly reading of GDP (started earlier this year) showed that real GDP grew +0.3% mom in July, matching the fastest pace since 2016 and eclipsing consensus forecasts for +0.1% mom. Trade data was positive and industrial production was slightly softer than expected, suggesting that the strong performance was driven by domestic demand. With the market pricing less than one hike per year – the pace that Carney endorsed after the last inflation report – this strong data should support the case for additional rate hikes, though the pound remains more sensitive to Brexit headlines for now.

Away from the UK data, second quarter Turkey GDP printed soft at +5.2% yoy, down from +7.3% in Q1. Fiscal policy has turned less supportive, financial conditions have tightened, the services sector slowed, and construction came to almost a full stop. The latest data in Q3 point to a hard landing, as the 41% YTD Lira depreciation takes its toll. We now expect 2018 and 2019 growth at 3.1% and 1.5%.

As for today’s calendar then, shortly after this hits your email we’ll get Q2 payrolls data in France followed later on by July and August employment data in the UK including earnings and the unemployment rate – both are expected to hold steady. In Germany we’ll get the September ZEW survey where expectations are for broadly no change in either expectations or the current situations gauge. In the US, we’ll get the August NFIB small business optimism reading later this morning, while this afternoon we’ll get the July JOLTS survey and July wholesale inventories and trade sales numbers. Away from the data Italy’s Finance Minister Giovanni Tria is due to speak this morning (10.50am BST) at an event in Rome while the ECB’s Nouy is due to speak in at the European Parliament. The Argentina Central Bank meeting is also due tonight, although no change in policy is expected. European Parliament is also due to debate today about possible sanctions against Hungary while Russia President Putin is due to meet China President Xi Jinping at the Eastern Economic Forum.

 

 

3. ASIAN AFFAIRS

i) TUESDAY MORNING/ MONDAY NIGHT: Shanghai closed DOWN 4.68 POINTS OR 0.18%   /Hang Sang CLOSED DOWN 190.87 POINTS OR 0.72%/   / The Nikkei closed UP 291.60 POINTS OR 1.30%/Australia’s all ordinaires CLOSED UP 0.61%  /Chinese yuan (ONSHORE) closed DOWN  at 6.8680 AS POBC RESUMES  ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER/Oil DOWN to 67.89 dollars per barrel for WTI and 77.71 for Brent. Stocks in Europe OPENED RED //.  ONSHORE YUAN CLOSED DOWN AT 6.8680 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8806: 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 is not too thrilled with this:  Trump is weighing sanctions on Chinese senior officials and their companies as well as freezing Chinese assets over in the USA for human rights violations

(courtesy zerohedge)

Trump Weighing Sanctions On Chinese Officials, Seizure And Freezing Of Chinese Assets

In a move that would sharply antagonize the already frayed relations between the US and China, president Trump is reportedly considering sanctions against Chinese senior officials and companies to punish Beijing’s detention of hundreds of thousands of ethnic Uighurs and other minority Muslims in what we reported recently were “massive internment camps“, the NYT reported citing current and former American officials.

While Trump has engaged in extensive punitive measures against China over the country’s “unfair” trade surplus with the US involving various rounds of tariffs – to which China has responded in tit-for-ta measure – the contemplated economic penalties would be one of the first times the Trump administration has taken action against China because of human rights violations, a topic which Beijing has been acutely sensitive about and could prompt a far more “emotional” response by Beijing. Additionally, US officials are also seeking to limit American sales of surveillance technology that Chinese security agencies and companies are using to monitor Uighurs throughout northwest China.

According to the report, while discussions to publicly rebuke China’s treatment of its minority Muslims had been underway for months among top government officials, the they gained urgency two weeks ago, “after members of Congress asked Secretary of State Mike Pompeo and Treasury Secretary Steven Mnuchin to impose sanctions on seven Chinese officials.”

And as noted above…

Until now, President Trump largely has resisted punishing China for its human rights record, or even accusing it of widespread violations. If approved, the penalties would fuel an already bitter standoff with Beijing over trade and pressure on North Korea’s nuclear program.

Human rights advocates say the mass detentions in the northwest region of Xinjiang are the worst collective human rights abuse in China in decades. It is also a part of President Xi Jinping’s governing style: since taking power in 2012, Xi – who recently changed the constitution to declare himself president for life – has steered China on a hard authoritarian course, which includes increased repression of large ethnic groups in western China, notably the Uighurs and Tibetans.

On Sunday, Human Rights Watch released a detailed report that concluded the violations were of a “scope and scale not seen in China since the 1966-1976 Cultural Revolution.” The report, which was based on interviews with 58 former residents of Xinjiang, recommended that other nations impose targeted sanctions on Chinese officials, withhold visas and control exports of technology that could be used for abuses.

In a process that would make members of the liberal US media faint, the Chinese Muslims in the camps are forced to attend daily classes and denounce aspects of Islam, study mainstream Chinese culture and pledge loyalty to the Chinese Communist Party. Some detainees who have been released have described torture by security officers. Chinese officials have labeled the process “transformation through education” or “counter-extremism education.” But they have not acknowledged that large groups of Muslims are being detained.

What is bizarre about the planned sanctions is that Trump has rarely if ever made statements criticizing foreign governments for human rights abuses or anti-liberal policies, and in fact has praised authoritarian leaders, including Xi. The Trump administration has confronted China over economic issues — the two countries are in the middle of a prolonged trade war — but has said little about rampant abuses by its security forces.

As such any escalation in the human rights arena, where China believes no foreign nations has any right to meddle over fears it could embolden other social groups to oppose and protest Beijing, would result in a significant deterioration in already frayed relations between the two nations.

* * *

Separately, in a report from Bloomberg over the weekend which was largely lost in all the noise over Trump’s proposed $267BN in new tariffs on Chinese imports, the US president is also reportedly considering imposing sanctions on Chinese entities caught stealing U.S. intellectual property via cyber attacks.

The plan being discussed would use an Obama administration executive order that allows the U.S. to impose sanctions on individuals or entities engaging in “malicious cyber-enabled activities.” But it has sparked a heated debate among administration officials, with Treasury Secretary Steven Mnuchin, who has jurisdiction over the potential sanctions, said to be blocking the effort, the people said.

Mnuchin has reason to be concerned: if Trump proceeds with the plan, the US could seize or freeze the assets of Chinese companies caught stealing U.S. firms’ intellectual property. It could also ban them from doing business with American companies.

The ongoing internal debates over new Chinese sanctions highlight how the Trump administration has been looking at raising the pressure on Beijing via measures beyond tariffs, all of which are part of what officials see as “an existential innovation war with China.”

Meanwhile, Trump is preparing to proceed with new tariffs on some 6,000 products from China that account for $200 billion in annual trade and which would be imposed “soon.” On Friday, the president also threatened to hit a further $267 billion in imports from China with tariffs “on short notice,” adding to $50 billion already in place. Together, they would exceed the value of all imported Chinese goods last year, worth $505 billion.

Should one or both of these proposals move beyond the planning stage, China’s response would be stark and all those wondering when US assets will finally respond to the ongoing conflict between the two superpowers will get an answer.

 

END

China will ask the WTO to approve their trade sanctions for dumping

(courtesy zerohedge)

Stock Futures Drop As China Asks WTO To Approve US Trade Sanctions

“Shape up” indeed…

Just weeks after China filed a complaint with the WTO over the US’s Section 201 tariffs on solar panel imports (which Trump imposed back in January, months before the US-China trade spat began in earnest), China is apparently turning up the pressure. According to a Reuters reportChina will ask the WTO during a meeting next week for permission to impose sanctions against the US after accusing it of noncompliance with a 2013 anti-dumping ruling. Reuters, which cited a WTO meeting agenda as its source for the news, said China is alleging that the US failed to modify anti-dumping methodologies to comply with the 2013 ruling.

China

The news sent US equity futures tumbling early Monday morning…

  • *CHINA TO ASK WTO TO AUTHORIZE TRADE SANCTIONS ON U.S: RTRS
  • *CHINA REQUEST FOR SANCTIONS RELATES TO ’13 DUMPING DISPUTE:RTRS

Here’s more from Bloomberg:

  • On Sept. 21, China will ask the WTO dispute settlement body to sanction trade retaliation against the U.S. for its failure to comply with a 2017 dispute ruling that found certain aspects of the U.S. anti-dumping regime to be illegal
  • China previously claimed that it could ask the WTO to approve $8.4 billion in annual retaliatory trade measures against the U.S. stemming from the case
  • This year a WTO arbitrator determined that the U.S. must comply with the 2017 ruling by Aug. 22
  • The U.S. acknowledged on Aug. 27 that it had not fully complied with the ruling and said it “continued to consult with interested parties on options to address the recommendations” of the dispute settlement body

The request will likely lead to years of legal wrangling, per Reuters.

The request is likely to lead to years of legal wrangling over the case for sanctions and the amount. Last year China won a WTO ruling in the dispute, which related to several industries including machinery and electronics, light industry, metals and minerals, with an annual export value of up to $8.4 billion.

As one analyst pointed out, this is likely a strategic decision on China’s part given that it doesn’t have as much leverage to impose tariffs on US imports because of its massive trade surplus with the US.

“I guess they are trying to pursue other avenues to hit back and this is one of them. Certainly something that will trigger some nervousness in markets should they actually go through with it once the US announces those tariffs. For now, they’re still “playing by the rules” and going through the WTO so let’s see how things will develop from here,” said Justin Low at ForexLive.

Meanwhile, in remarks that appear to cut against the aggressive posturing on trade, the head of China’s market regulator said on Tuesday that a trade war would not benefit China or the US – and that tensions could only be resolved via “dialogue and negotiation,” according to a separate Reuters report.

END

China responds by halting new USA licenses as the tariff battle intensifies

(courtesy zerohedge)

China Halts Licenses For US Companies Amid Tariff Battle

As the tariff battle between Washington and Beijing worsens, China has halted license applications from American companies in financial services and other industries until progress is made towards settling the trade dispute, reports APciting an official belonging to a business group.

The disclosure marks the first public acknowledgement that US companies expect their operations in China, or access to China’s markets, may be disrupted by the dispute over Beijing’s technology policy.

China is running out of American imports for penalties in response to U.S. President Donald Trump’s tariff hikes, which has prompted worries that Chinese regulators might target operations of U.S. companies.

The license delay applies to industries Beijing has promised to open to foreign competitors, according to Jacob Parker, vice president for China operations of the U.S.-China Business Council. The group represents some 200 American companies that do business with China. –CNBC

In meetings held over the last three weeks, Cabinet-level officials told USCBC reps that applications from US firms will be put off “until the trajectory of the US-China relationship improves and stabilizes,” according to Parker.

Chinese officials, meanwhile, have promised to increase non-US foreign access to several areas, including banking, insurance, securities and asset management.

“There seem to be domestic political pressures that are working against the perception of U.S. companies receiving benefits” amid the dispute, said Parker, who added that Chinese officials want an end to Trump’s tariff hikes as well as a negotiated settlement.

Beijing matched Trump’s earlier tariff increase on $50 billion of imports but is running out of American goods for retaliation due to their lopsided trade balance. China bought American goods worth about $1 for every $3 of goods it exported to the United States.

Trump is poised to decide whether to raise duties on $200 billion of Chinese goods. Beijing has issued a $60 billion list of goods for retaliation. CNBC

Foreign ministry spokesman, Geng Shueng, said Monday that China is planning to “definitely take countermeasures” if Trump goes ahead with the hike.

Industries in the crosshairs include those tied to engineering or logistics, in which the US has a trade surplus with China. Chinese commentators, meanwhile, think that Beijing may leverage its multitrillion-dollar holdings of US government debt against the US – however that would impose costs on China.

In June, Beijing said that it would impose “comprehensive measures” if necessary, without specifying what those may consist of.

Chinese business leaders have also rejected Trump’s demand that China roll back their “Made in China 2025” initiative, which calls for the state-led emergence of robotics, AI and other technologies.

Washington, Europe and other trading partners say those plans violate Beijing’s market-opening commitments. But Communist leaders see them as a path to prosperity and global influence.

Chinese negotiators agreed in May to narrow their multibillion-dollar trade surplus with the United States by purchasing more American soybeans and other products. Beijing scrapped that deal after Trump’s first tariff increase went ahead July 6. –CNBC

Meanwhile, the Trump administration wants Beijing to reduce the privileges of state-owned companies, and get rid of requirements that foreign companies hand over technology to Chinese partners. That said, Chinese officials in meetings with the USCBS suggested that they would be open to buying more American exports, but “showed no appetite at all” for industry reform, changes to their technology polic or any other US priorities, according to Parker.

I don’t consider that to be very positive for any kind of negotiated outcome in the short term or medium term,” he said.

4.EUROPEAN AFFAIRS

 

UK

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

Syria/USA/Russia

The staged false flag filming of a chemical attack begins in Idlib

(courtesy zerohedge)

Staged Filming of False Flag ‘Chemical Attacks’ Has Begun in Idlib: Russian

MoD

Russian state media channels, in a near simultaneous blitz of information, have issued breaking alerts this morning that anti-Assad insurgents in Idlib have begun filming “fake footage of chemical attacks” based on Russian Ministry of Defense (MoD) statements.

The Russian Center for Syrian Reconciliation says the “fake footage of chemical attacks”  is expected to be delivered to various TV channels and Western journalists before the end of the day Tuesday.

Russia’s Sputnik News indicates based on official Moscow sources:

According to the information received from inhabitants of Idlib province, militants are now filming a staged provocation in the city of Jisr al-Shugur, where “chemical weapons” are depicted as being used by the Syrian army against civilians. The film crews of several Middle Eastern TV channels arrived in Jisr al-Shugur in the morning, as well as the regional affiliate of one of the main American television news networks”, the Reconciliation Center said.

Idlib residents have begun donning ‘protective gear’ according to an Al-Jazeera report. Image source: Reuters

Jisr al-Shugur is a key al-Qaeda held town in Idlib Province, specifically under the control of Hayat Tahrir al-Sham (formerly Nusrah Front, or al-Qaeda). Indeed there have been international journalists inside Jisr al-Shugurover the past weeks.

Official Russian military sources also say two containers with chlorine-based toxic substance have been brought to Jisr al-Shugur; however, the sources did not cite any specific intelligence or provide evidence for the claim.

The Russian MoD described, per Sputnik:

The plot envisages staged scenes showing ‘activists’ of the Civil Defence (“White Helmets”) ‘helping’ the residents of Jisr al-Shughur after the Syrian army allegedly used the so-called barrel bombs with poisonous substances,” the center said.

Meanwhile Russian channel RT also featured the charges in breaking news, describing:

Several Middle East TV channels and a local branch of a leading US news channel have been sent to the city of Jisr al-Shughur in Syria’s Idlib governorate to produce the footage needed for the provocation.

This comes the same morning as a new Wall Street Journal report confirms that the White House is now in direct talks with the U.K. and France over plans for a possible third round of coordinated strikes on Syria should the Syrian Army use chemical weapons during its Idlib assault.

Speaking to reporters after a major speech on Monday, US national security advisor John Bolton slammed Moscow’s allegations of an impending staged “chemical provocation,” saying “That has to be, in the history of propaganda in the 20th and 21st centuries, one of the most outrageous claims that I can think of,” according to the WSJ.

end

6. GLOBAL ISSUES

 

7  OIL ISSUES

India has a tough decision to make ahead of the sanctions that will be imposed if any nation deals with Iran. The big question is what will India do.  Here is the background

(courtesy Tim Daiss/OilPrice.com)

 

Will The U.S. Let India Continue To Import Iranian Crude?

Authored by Tim Daiss via Oilprice.com,

India is increasingly finding itself caught between competing alliances.

On one hand, ties between Washington and New Delhi have improved in recent years in large part to what both sides perceive as increased threats from China both militarily and economically in the South China Sea and overall Indo-Pacific region.

On the other, New Delhi has also experienced improved bilateral relations with Tehran. This improvement in relations, in large part, comes from the two countries’ own oil related interests. Iran, since earlier sanctions against its energy sector were removed in 2016, has been eager to recapture lost market share both in India and the overall Asia-Pacific region as it quickly ramped up oil production post sanctions.

India, as the world’s third largest oil importer after China and the U.S., needs Iranian oil for its expanding refinery sector and also the diversity of supply extra Iranian oil imports would provide. Iran has also been offering India generous discounts on its oil imports this year. As recently as late July, with the first phase of new U.S. sanctions impending, Iran upped the ante ever more by offering to ensure oil cargoes to India after some local insurers stopped providing the service. Currently, India is Iran’s second largest buyer of crude oil after China.

Now, recent data shows that India has been trimming its purchases of Iranian crude due to increased pressure from Washington. Earlier this week, preliminary tanker arrival data indicated that India had imported 5320,000 barrels per day (bpd) of Iranian oil in August, a 32 percent plunge from just one month earlier. Despite the marked decrease, the August figure is still 56 percent higher than the same period last year as Indian refiners continue to take advantage of Iranian discounts.

Another problem for India is the fact that annual import plans from its refiners were already in place before President Trump’s decision in May to reimpose sanctions against Iran over its nuclear development plans. In April, industry sources told media outlets that Indian refiners had planned to double its import of Iranian crude in 2018/19, mostly due to advantageous pricing and discounts offered by Iran. The development at the time marked a pivot in Indian-Iranian bilateral relations and a win-win scenario for the energy sectors in both countries.

Though India trimmed its Iranian oil procurement last month, the question going forward is whether or not this trend will last. New Delhi, for its part, has been waffling over that very question. At times, the country appears to offer a conciliatory tone to Washington to trim Iranian oil imports, while at other times it seems poised to push back against that pressure.

Examining India’s oil imports just from the last three months may help provide a possible future trajectory. India cut its Iranian oil imports in June (just a month after Washington stated it would reimpose sanctions against Iran) by 16 percent from the previous month. In July, however, India’s state refiners actually increased its oil imports from Iran by 30 percent over the previous month, a record high bump to 768,999 bpd. India’s oil imports from Iran in July represented an 85 percent spike from the 415,000 bpd shipped in July 2017. Notably, the marked increase in July’s figures came as Indian state-owned refiners increased Iranian oil procurement in anticipation of uncertainty over upcoming sanctions.

Given the mixed signals over compliance with Washington’s desire for India to cut Iranian oil and with Iran offering even more advantageous procurement incentives to Indian refiners, it appears that India will continue to buy Iranian oil above 2017 levels.

India also bring its own pressure to bear on the U.S. since Washington is becoming increasingly reliant on New Delhi as a deterrent to Chinese hegemony in the region. This week high level Indian and U.S. officials are meeting in New Delhi over several key issues.

Indian foreign minister Sushma Swaraj and Defense Minister Nirmala Sitharaman are holding the first high-level talks with their U.S. counterparts, Secretary of State Mike Pompeo and Defense Secretary Jim Mattis. Part of the agenda includes the goal of boosting cooperation in the Indo-Pacific region and finalizing a pact on encrypted defense technologies.

Though not officially on the agenda, India could also pressure Pompeo for a waiver over its Iranian oil procurement. In July, lower level Indian officials, including those with the ministries of external affairs, home and finance, met with a U.S. delegation led by Marshall Billingslea, the American assistant secretary for Terrorist Financing in the Department of the Treasury to discuss Iranian sanctions, marking what Indian media outlet the Hindustan Times called at the time, “a strong pitch to the US for leniency in complying with sanctions on Iran, citing their likely impact on its oil imports and investment in the Chabahar port.” However, nothing concrete materialized from the meeting.

Pompeo said on Tuesday that the issues of Russian arms sales to India and Iranian oil “will certainly come up [during this week’s meeting in New Delhi], but I don’t think they will be the primary focus of what it is we are trying to accomplish here.”

end

 

Bill Bonner on the 4 big mistakes made by Fed policy.

(courtesy Bill Bonner/Bonner and Partners)

Bill Bonner: America’s Oil Boom Is A Fraud

Authored by Bill Bonner via Bonner & Partners,

Fed policy always consists of the same three mistakes

1) Keeping interest rates too low for too long, resulting in too much debt;

2) Raising interest rates to try to gently deflate the debt bubble; and

3) Cutting rates in a panic when stocks fall and the economy goes into recession.

Well, here comes the Big Bang: Mistake #4 – rarely seen, but always regretted.

Mistake #4 is what the feds do when their backs are to the wall… when they’ve run out of Mistakes 1 through 3.

It’s a typical political trade-off. The future is sacrificed for the present. And the welfare of the public is tossed aside to buy money, power, and influence for the elite.

Apocalypse Now!

Every debt expansion ends in a debt contraction. Stocks crash. Jobs are lost. The economy goes into reverse, correcting the mistakes of the previous boom.

Investors see their money entombed. Householders await foreclosures. The authorities scream: Apocalypse Now!

The more the feds falsify price signals in the boom, the more mistakes there are to correct. For example, this week, a report in The New York Times described the big mistake in the shale oil boom.

You’ll recall that it turned America from a big importer of oil to a major exporter… and revived much of the heartland with big fracking projects in woebegone regions of Texas and North Dakota.

The shale oil boom was even credited with having scuttled the oil market, which dropped from a high of around $130 a barrel in mid-2008 to under $30 in late 2016, thanks to so much new supply.

But guess what? The whole boom was fake. It didn’t add to wealth; it subtracted from it. Accumulated losses over the last five years tote to more than $200 billion, with $36 billion lost in the Bakken shale fields in North Dakota alone.

Had credit been priced properly, it never would have happened. From The New York Times:

The 60 biggest exploration and production firms are not generating enough cash from their operations to cover their operating and capital expenses. In aggregate, from mid-2012 to mid-2017, they had negative free cash flow of $9 billion per quarter.

These companies have survived because, despite the skeptics, plenty of people on Wall Street are willing to keep feeding them capital and taking their fees. From 2001 to 2012, Chesapeake Energy, a pioneering fracking firm, sold $16.4 billion of stock and $15.5 billion of debt, and paid Wall Street more than $1.1 billion in fees, according to Thomson Reuters Deals Intelligence.

That’s what was public.

In less obvious ways, Chesapeake raised at least another $30 billion by selling assets and doing Enron-esque deals in which the company got what were, in effect, loans repaid with future sales of natural gas.

But Chesapeake bled cash. From 2002 to the end of 2012, Chesapeake never managed to report positive free cash flow, before asset sales.

Turkeys Fly

Of course, the same thing could be said of the trillion-dollar companies, Amazon and Apple, whose market capitalizations are largely the result of cheap credit.

And it could be said of the whole tech sector – with its outrageous inputs of capital into companies that have never made a dime.

Or it could be said of emerging markets, which have managed to suck up the loose change spilling out of the financial industry. They promised slightly higher yields, and now, they owe far more than they can pay.

It could also be said of Silicon Valley carmaker Tesla, which now has an estimated $10.5 billion in debt – despite never having made a profit…

Or of the entire stock market, where trillions of dollars in cheap capital have produced very little real return.

“When the wind blows hard enough,” say the old-timers, “even turkeys fly.”

The wind never blew as hard as it did from 2009 to 2018. And overhead now are so many plump, money-losing birds that we suggest you take cover.

Mistake #4

But that’s just the beginning… As the turkeys fall to Earth, the Fed’s reputation is called into doubt. Its manhood is questioned. Congress and the Trump administration, too, are roused to action!

The feds will make the rational choice (for them). They will go for broke.

That is, they will do things that cause you to go broke… while the insiders continue to get rich, following the tried-and-true remedy of Mistake #4 – the refuge of scoundrels and the last resort of jackasses from Zimbabwe to Venezuela.

The essence of Mistake #4 is “printing” money – lots of it – to cover soaring deficits, prop up failing enterprises, reflate markets, rescue sinking households, save the bankers, reward the cronies, and keep the zombies from running wild in the streets.

All this money-printing will spark inflation… which will soon be blazing-hot.

The Fed, of course, is duty-bound to keep prices “stable.” But in the end-of-the-world hysteria, we predict the Fed will “print”… and worry about price stability later.

“When someone is trapped in a house fire… you try to get them out,” the feds will say. “We’ll worry about the fire insurance later.”

Two-trillion-dollar deficits?

Maybe more.

A breathtaking infrastructure boondoggle. A “space force” so far out that it is quickly lost somewhere beyond Mars.

New trade wars to protect U.S. industries from fair competition. A “guaranteed income” for everyone.

Bailouts… Subsidies… Grants… Contracts… Spend, spend, spend. “It’s good for the economy!”

Oh… and new controls on banking and cash… and perhaps gold and even bitcoin… closing the doors to prevent people from escaping the burning building.

Our advice: Run, don’t walk, to the nearest exit now.

end

 

8 EMERGING MARKET ISSUES.

 

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

Euro/USA 1.1589 DOWN .0005/ 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 111.29   UP 0.149  (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 1.3025 DOWN   0.0002  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.3154  DOWN .0009(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 TUESDAY morning in Europe, the Euro FELL by 9 basis point, trading now ABOVE the important 1.08 level FALLING to 1.1589; / Last night Shanghai composite CLOSED DOWN 4.68 POINTS OR 0.18%  /Hang Sang CLOSED DOWN 190.87 POINTS OR 0.72% /AUSTRALIA CLOSED UP  0.61% / EUROPEAN BOURSES ALL RED

 

The NIKKEI: this TUESDAY morning CLOSED UP 291.60 POINTS OR 1.30%

 

Trading from Europe and Asia

1/EUROPE OPENED ALL RED 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang DOWN 190.87 POINTS OR 0.72%  /SHANGHAI CLOSED DOWN 4.68 POINTS OR  0.18%

Australia BOURSE CLOSED UP 0.61%

Nikkei (Japan) CLOSED UP 290.60 POINTS OR 1.30%

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1194.95

silver:$14.12

Early TUESDAY morning USA 10 year bond yield: 2.95% !!! UP 2 IN POINTS from MONDAY night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/

The 30 yr bond yield 3.09 UP 1  IN BASIS POINTS from MONDAY night. (POLICY FED ERROR)/

USA dollar index early TUESDAY morning: 95.22 UP 7  CENT(S) from MONDAY’s close.

This ends early morning numbers MONDAY MORNING

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And now your closing TUESDAY NUMBERS \1: 00 PM

 

Portuguese 10 year bond yield: 1.89% UP 1    in basis point(s) yield from MONDAY/

JAPANESE BOND YIELD: +.12%  UP 0 BASIS POINTS from MONDAY/JAPAN losing control of its yield curve/EXTREMELY VOLATILE YESTERDAY

SPANISH 10 YR BOND YIELD: 1.45% DOWN 0  IN basis point yield from MONDAY/

ITALIAN 10 YR BOND YIELD: 2.94 UP 3   POINTS in basis point yield from MONDAY/

 

 

the Italian 10 yr bond yield is trading 149 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: RISES UP TO +.43%   IN BASIS POINTS ON THE DAY

END

IMPORTANT CURRENCY CLOSES FOR TUESDAY

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

Euro/USA 1.1593 DOWN .0004(Euro DOWN 4 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 111.37 UP 0.429 Yen DOWN 43 basis points/

Great Britain/USA 1.30010 DOWN .0016( POUND DOWN 16 BASIS POINTS)

USA/Canada 1.3130  Canadian dollar UP 33  Basis points AS OIL ROSE TO $69.25

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This afternoon, the Euro was FELL BY 4 BASIS POINTS  to trade at 1.1593

The Yen FELL to 111.37 for a LOSS of 43 Basis points as NIRP is STILL a big failure for the Japanese central bank/HELICOPTER MONEY IS NOW DELAYED/BANK OF JAPAN NOW WORRIED AS AS THEY ARE RUNNING OUT OF BONDS TO BUY AS BOND YIELDS RISE

The POUND LOST 16 basis points, trading at 1.3010/

The Canadian dollar GAINED 33 basis points to 1.3130/ WITH WTI OIL RISING TO 69.25

The USA/Yuan,CNY closed DOWN AT 6.8730-  ON SHORE  (YUAN DOWN)

THE USA/YUAN OFFSHORE:  6.8770 (  YUAN DOWN)

TURKISH LIRA:  6.4377

the 10 yr Japanese bond yield closed at +.12%   DOWN 0  BASIS POINTS FROM YESTERDAY

 

 

Your closing 10 yr USA bond yield UP 4  IN basis points from MONDAY at 2.97 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.11 UP 3  in basis points on the day /

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

Your closing USA dollar index, 95.20 UP 5 CENT(S) ON THE DAY/1.00 PM/

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

London: CLOSED DOWN  5.76 POINTS OR 0.08%

German Dax : CLOSED UP 16.07 POINTS  OR 0.13%
Paris Cac CLOSED UP 14.16 POINTS OR 0.27%
Spain IBEX CLOSED UP 13.30 POINTS OR 0.14%

Italian MIB: CLOSED DOWN:  65..06 POINTS OR 0.31%/

 

The Dow closed  DOWN  59.47 POINTS OR 0.23%

NASDAQ closed UP 21.62points or 0.22% 4.00 PM EST 

 

WTI Oil price; 69.25  1:00 pm;

Brent Oil: 78.81 1:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    69.63/ THE CROSS LOWER BY  0.92 ROUBLES/DOLLAR (ROUBLE HIGHER BY 92 BASIS PTS)

USA DOLLAR VS TURKISH LIRA:  6.4377 PER ONE USA DOLLAR.

TODAY THE GERMAN YIELD RISES +.43 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:$69.42

BRENT: $79.09

USA 10 YR BOND YIELD: 2.98%

USA 30 YR BOND YIELD: 3.12%/

EURO/USA DOLLAR CROSS: 1.1594 UP .0001 ( UP 1 BASIS POINTS)

USA/JAPANESE YEN:111.57 UP 0.432 (YEN DOWN 43 BASIS POINT/ .

USA DOLLAR INDEX: 95.15 UP 1 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.3024 DOWN 4 POINTS FROM YESTERDAY

the Turkish lira close: 6.4304

the Russian rouble:  69.53 UP 1.01 roubles against the uSA dollar.(UP 101 BASIS POINTS)

 

Canadian dollar: 1.3086 UP 77 BASIS pts

USA/CHINESE YUAN (CNY) : 6.8730  (ONSHORE)

USA/CHINESE YUAN(CNH):  6.8778 (OFFSHORE)

German 10 yr bond yield at 5 pm: ,0.43%


VOLATILITY INDEX:  14.16  CLOSED DOWN 0.72

LIBOR 3 MONTH DURATION: 2.334%  .LIBOR  RATES ARE RISING

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

TRADING IN GRAPH FORM FOR THE DAY

 

Stocks Pop As Beijing Backs Off, But Hindenburg Cluster

Hovers

Another day of this:

China was weak overnight after the World Trade Organization said China would ask for permission to retaliate against the U.S. due to its failure to modify anti-dumping methodologies.

 

Europe was mixed to lower across all the majors…


US Futures were weighed down by that until WSJ reported that Beijing was backing off on the tough talk and wooing US firms’ investment dollars, sending stocks soaring… with Nasdaq best…

 

However, gains for the day were pretty much capped at around the European close…

 

Tech stocks outperformed financials for the second day in a row…

 

But that is not helping the big banks as Goldman is now down 10 days in a row – the longest losing streak since the company’s IPO…

 

Treasuries sold off across the curve as U.S. equities rebounded from early lows. The belly led losses in the run-up to Treasury’s $35b auction of 3-year notes, which tailed slightly.

 

Benchmark 10-year yields rose to within a hair of 2.98%, touching the highest level in a month.

 

Meanwhile, traders are shifting to a more hawkish stance as the market’s expectations for rate-hikes in 2019 are now at cycle highs (+42bps) but still well short of The Fed’s +75bps dot plot expectation…

 

The Dollar Index ended the day practically unchanged after testing down to pre-payrolls lows intraday and bouncing…

 

Cryptos were broadly lower with Bitcoin managing to drop the least…

 

Spot the odd one out in commodity-land…

 

Crude rose the most in a week as Hurricane Florence threatened U.S. East Coast gasoline markets and sanctions began crimping Iranian oil exports. East Coast motorists may see “dramatic” spikes in gasoline prices, according to AAA, as mass evacuations stretch supplies and Florence’s heavy rains imperil major fuel pipelines.

 

Perhaps of most note in the commodity space is the divergence between copper and crude… both telling quite different stories about global growth…

Gold futures broke back below $1200 briefly but bounced…

 

But the biggest divergence of all is Gold/Silver which just reached its highest ratio since March 1995 (NOTE  – we appear to be at a historical resistance level)…

 

Finally, we note that the S&P 500 Index is on the verge of setting a new high for overvaluation. Its trailing 12-month price-to-sales ratio surged to 2.25 on Monday, the highest since the dot-com era. If you think it’s just the tech giants skewing the number, think again: The median PSR for index members is more than twice the level of the late 1990s.

And the end of last week showed a new cluster of Hindenburg Omens forming…

Probably nothing.

All it will take to topple this house of cards is a little tap on the brakes from an exogenous factor…

BreakingNNow@BreakingNNow

#BREAKING: Marinelli Snipers Team have cancelled the contract with rider Romano Fenati after grabbing a rival’s brake while travelling at 132mph during the San Marino Moto2.

(Video: @MotoGP)

 

END

market trading/this morning

 

 

Market data

For the second month in a row, wholesale ‘sales” and inventories missed again this time in July.  It means that the Trump tariffs are beginning to have an effect on trade

(courtesy zerohedge)

Wholesale Trade Hit By Double Whammy As Inventories, Sales Miss

One month after wholesale trade was hit with a double whammy, after both wholesale sales and inventories missed, the bad news for businesses continued, with both inventories and sales missing expectations in the month of July.

With expectations for a 0.1% rise in June wholesale sales after last month’s -0.1% decline, the latest number was disappointing on both sides, with the July print coming in at 0.0%, after June was revised even lower, to -0.2%.

Meanwhile, even as inventories rebounded from last month’s disappointing 0.1% increase, the 0.6% print was also a miss to expectations of 0.7%.

So while much of the rest of the economy continues to hum along, gliding on Trump’s fiscal stimulus, when it comes to actual trade and commerce, it appears that the trade war with China is starting to impact if not sentiment just yet – with the latest ISM printing at near all time highs, then performance with two months in a row of disappointing wholesale trade data.

end

The budget deficit soars to almost 900 billion dollars with one month to go before the beginning of the new fiscal year.  However the true deficit is probably around 1.2 trillion dollars as one must include the auto loans and student loans which are not included because they are an asset as well as a liability.

It seems that David Stockman was correct last year in predicting a true deficit of $1.2 trillion.  What is alarming is the uSA also needs a further 600 billion in funding for the Fed roll offs.  Total amount of bond issuance then for the upcoming year:  North of 1.8 trillion  dollars:  (600 billion dollars for Fed roll off and 1.2 trillion dollars for the true budgetary deficit which needs funding).

(courtesy zerohedge)

Budget Deficit Soars To $895 Billion; Will Hit $1 Trillion One Year Ahead Of Plan

The U.S. budget deficit rose to $211 billion in August, nearly double the deficit gap from one year ago, the Congressional Budget Office estimated late Monday, which however was largely due to a calendar quirk: adjusted for shifts in payments, which would have occurred on a weekend, the deficit would have grown by 19%.

Excluding the timing shifts, outlays grew 8%, as the net interest on public debt jumped 25%, defense spending jumped 10%, outlays for Social Security grew 5%, and outlays for Medicare benefits rose 7%. Tax receipts fell by 3%, with corporate taxes dropping by $5 billion, while revenue from income and payroll taxes rose marginally.

Revenue from individual and payroll taxes was up some $105 billion, or 4 percent, as increasing wages, mostly due to more people having jobs, offset a lower withholding rate. while corporate taxes fell $71 billion, or 30%largely due to Trump tax reform, which lowered corporate tax rates as well as the expanded ability to immediately deduct the full value of equipment purchases.

Spending on Social Security and Medicare have climbed 4% as more baby boomers retire, outlays on net interest on the debt have jumped 19% in part due to a higher rate of inflation triggering more payments to inflation-protected securities holders, and defense spending has jumped 6%.

Still, on a cumulative basis, the budget deficit is blowing out in a big way, and in the first 11 months of the fiscal year, the deficit was $895 billion, $222 billion or 39% more than the previous year. This is largely due to outlays which have climbed 7% while revenue rose a mere 1%.

Commenting on the soaring deficit, White House chief economic adviser Kevin Hassett, told reporters on Monday that corporate tax cuts, but not the whole package, would pay for themselves with higher growth.

“I think that the notion that the corporate tax side has about paid for itself is clearly in the data,” he said. “On the individual side, there was about a trillion-dollar cost. About $700 billion of that was a refundable child credit that got expanded at the last minute to get the votes they needed to pass it.”

While other administration officials have made even more bombastic claims that the entire tax cut would pay for itself, including Treasury Sec. Steven Mnuchin and Gary Cohn, this has yet to manifest itself in the numbers.

But what is most ominous, at least to budget hawks, is that the CBO now says the deficit will approach $1 trillion by the end of this fiscal year or one year sooner than disclosed in the CBO’s most recent forecast ; in April the agency didn’t expect the deficit to reach $1 trillion until 2020.

Then again, over the long run none of this matters…

USA economic/general stories
Trump to unveil a second round of proposed tax cuts hoping to secure the House in the next election
(courtesy zerohedge)

“Tax Reform 2.0”: Republicans Unveil Second Round Of Proposed Tax Cuts

House Republicans on Monday released plans for a second round of tax cuts, which follow comprehensive tax legislation enacted in December, just two months ahead of the midterms. House Ways and Means Committee Chairman Kevin Brady (R-Texas) on Monday unveiled the package of three bills touted as a sequel to the 2017 GOP tax law.

Ways and Means

@WaysandMeansGOP

JUST INTRODUCED: Tax Reform 2.0. Focused on permanence, retirement, and innovation. Learn more ➡️ https://waysandmeans.house.gov/brady-hails-introduction-of-tax-reform-2-0-permanent-tax-relief-for-families-and-small-business-helping-families-save-more-and-spurring-innovation-here-in-u-s/ 

Brady Hails Introduction of Tax Reform 2.0: Permanent Tax Relief for Families and Small Business,…

Washington, D.C. – Today, House Ways and Means Committee Chairman Kevin Brady (R-TX) spotlighted the introduction of three bills that collectively build on the growing economic successes of the Tax…

waysandmeans.house.gov

“Last year we said goodbye to America’s old, broken tax code,” said Brady. “Under our new system, we’re seeing incredible job growth, bigger paychecks, and a tax code that works on behalf of families and American businesses. Now it’s the time to ensure we never let our tax code become so outdated again. We look forward to bringing these bills to the Committee soon.”

The three pieces of legislation proposed by Republicans on the tax-writing House Ways and Means Committee would make permanent lower individual rates, eliminate the maximum age for some contributions to retirement accounts and allow new businesses to write off more start-up costs, among other provisions Reuters reported.

Eager to keep the spotlight away from Trump, the GOP has struggled to keep the political focus on the booming economy ahead of November’s election, where forecasters are largely in agreement that Democrats will retake the House if not the Senate.

According to the Hill, some vulnerable Republicans hoping to run on the tax cut and economy have been frustrated that scandals from the White House continue to drown out largely positive economic news.

Others in the GOP raised concern about the new round of tax cuts, which would make permanent a $10,000 cap for deducting state and local taxes, a provision that is unpopular in high-tax states. As a result, blue-state Republicans worry that focusing on the issue ahead of the election will make their reelection bids tougher.

Predictably, democrats blasted the new initiative.

“The first Republican tax law hasn’t helped workers get ahead – wages aren’t keeping up with inflation, costs for health insurance and prescription drugs are rising, and companies are laying people off and shipping jobs overseas,” said Ways and Means ranking member Rep. Richard Neal (D-Mass.). “This new tax legislation is more of the same – it disproportionately benefits the wealthiest Americans while growing the nation’s debt even more.”

With the GOP set to lose a House majority, the probability of this tax package passing is slim to nil absent a pre-midterm hail mary. For those curious to read what is contained in the proposals, the bills introduced today as part of this Tax Reform 2.0 package can be found below:

H.R. 6760, the Protecting Family and Small Business Tax Cuts Act of 2018, sponsored by Rep. Rodney Davis (R-IL), and cosponsored by Rep. Mark Meadows (R-NC), Rep. Mark Walker (R-NC), House Ways and Means Committee Chairman Kevin Brady (R-TX), and all other Ways and Means Committee Republicans.

H.R. 6757, the Family Savings Act of 2018, sponsored by Rep. Mike Kelly (R-PA), and cosponsored by Rep. Paul Mitchell (R-MI), House Ways and Means Committee Chairman Kevin Brady (R-TX), and all other Ways and Means Committee Republicans.

H.R. 6756, the American Innovation Act of 2018, sponsored by Tax Policy Subcommittee Chairman Vern Buchanan (R-FL), and cosponsored by House Ways and Means Committee Chairman Kevin Brady (R-TX) and all other Ways and Means Committee Republicans

END

 

Is this the real reason that Rahm Emmanuel dropped out of the mayoral race in Chicago:  it is going bust!!

(courtesy TED DABROWSKI/WIRE POINTS)

 

A More Likely Reason Rahm Emanuel Dropped Out: The Chicago Time Bomb

 

END

Florence is now a category 4 hurricane and it is moving slowly. The impact is heading straight for Wilmington NC and could cause massive flooding.

(courtesy zeorhedge

 

Millions Brace For Cat 4 Hurricane Florence, Threatened By “Historical Inland Flooding”

With mandatory evacuations issued for coastal regions of North and South Carolina and Virginia, millions of Americans are preparing for what could be the most catastrophic hurricane to hit the US East Coast in many decades. The latest report from the National Hurricane Center (NHC) indicates that Hurricane Florence is packing winds up to 140 mph as a Category 4 storm, which could strengthen and become a Category 5 storm Tuesday.

Computer models forecast the storm to make landfall in North or South Carolina on Thursday, hitting a stretch of coastline that is already vulnerable to sea level fluctuations with 30- to 40-foot waves.

By 5 a.m. Tuesday, the NHC released a report specifying Florence was about 975 miles east-southeast of Cape Fear, North Carolina, and moving west-northwest at 15 mph. Its center will be wedged between Nassau and Bermuda on Wednesday and approach the coast of South and North Carolina on Thursday, as a possible Category 4/5 storm.

image.gif

“The storm looks very bad!” President Donald Trump tweeted Monday afternoon.

South Carolina Gov. Henry McMaster ordered an estimated 1 million people to evacuate from coastal areas of the state as Florence strengthened to a Category 4 storm Monday. North Carolina Gov. Roy Cooper, who ordered an estimated 250,000 residents and visitors to begin evacuating the Outer Banks barrier islands. And Virginia’s governor ordered a mandatory evacuation for some residents of low-lying coastal areas.

image.gif

Global + Hurricane Florence Model Track Guidance overwhelmingly show a direct hit on the Carolinas.

image.gif

Computer models reveal that Florence could slow just off the coast of the Carolinas, it could then bring torrential rains to the Appalachian mountains and as far away as West Virginia, causing flash floods, mudslides, and other hazardous conditions.

Ed Vallee, Vallee Wx Consulting Meteorologist, said the real danger is inland flooding, as was the case in Texas in 2017. He said the European Model, shown below, warns that a “widespread swatch of 10-15″ rain from southern NC to northwestern VA.”

Bloomberg warns that Florence’s potential path of destruction could trigger inland flooding and increase the risks for the environment and public health. There is a severe risk that flooding could overwhelm toxic pits of shit from hog farms and coal-ash and other industrial waste facilities in the three states.

Another significant risk that is getting very little attention but should be very concerning is the dozen or so operating nuclear power plants in the Carolinas to Virginia.

Bloomberg also notes that Florence may cause upwards of $15 billion to $20 billion in covered losses from wind and coastal storm-surge, if the past is any guide, according to catastrophe modeler Risk Management Solutions (RMS).

Covered losses are based on benchmarking two similar hurricanes from decades past — Hazel in 1954 and Hugo in 1989, and convert their damage into present-day dollars, according to Tom Sabbatelli, an event response manager at RMS. However, the figures do not include the potential cost of inland flooding, which Vallee believes could be the real danger at play.

With Florence expected to hit the US East Coast by the end of the week, it is still difficult to predict the exact path and kind of damage the storm might cause.

“There can be the potential for significant uncertainty in a forecast track for a storm like Florence that is so far offshore,” Sabbatelli told Bloomberg. “Every event has its unique characteristics so we’re using that as a broad-brush first pass right now,” he said of the benchmarks.

National Hurricane Center Director Ken Graham said that computer models showed Florence was forecast to stall over the Carolinas once it reaches shore.

“People living well inland should prepare to lose power and endure flooding and other hazards,” Graham warned.

Next 5-Days Rain Forecast:

“It’s not just the coast,” he added. “When you stall a system like this and it moves real slow, some of that rainfall can extend well away from the center.”

What are meteorologist saying about the storm?

“As Hurricane Florence makes landfall, the storm movement will be a crawl. Models are showing monumental rainfall totals along the coast and just inland east of the eye’s landfall location … large area of 20″+ rainfall up to 40″+ Both ECMWF and UKMET show similar patterns,” said Ryan Maue, Meteorologist at @weatherdotus.

Meteorologist Ryan Miller warns about the explosive population growth from the Carolinas to Maryland that he says have “NO hurricane experince.”

Chuck Bell, a meteorologist for NBC4 in DC, says the hurricane “is expected to slow to a near stall after landfall at which point historical inland flooding could take place!”

As hurricane watches are now up for the Carolinas, a slowdown is expected (right at landfall) with substantial inland flooding concerns. This is a dangerous situation, and it is now time to hit the panic button.

SWAMP STORIES

New Strzok -Lisa Page texts discuss an FBI media leak strategy trying to take down Trump. This occurred hours before the first Washington Post bombshell disparaging Carter Page

(courtesy zerohedge)

New Strzok-Page Texts Discuss FBI “Media Leak Strategy”

Within Hours Of Washington Post Bombshell

Newly released text messages between disgraced FBI agent Peter Strzok and former FBI attorney Lisa Page regarding a “media leak strategy” have come under intense scrutiny, as they were exchanged one day before and one day after a bombshell Washington Post article during a critical point in the Trump-Russia investigation, reports Sara Carter and the Daily Caller‘s Chuck Ross.

Photo: Daily Caller

The text messages, revealed Monday by Rep. Mark Meadows (R-NC) and sent the day before and after two damaging articles about former Trump campaign adviser Carter Page, raise “grave concerns regarding an apparent systematic culture of media leaking by high-ranking officials at the FBI and DOJ related to ongoing investigations.” 

Recall that Strzok’s boss, former FBI Deputy Director Andrew McCabe, was fired for authorizing self-serving leaks to the press.

Also recall that text messages released in January reveal that Lisa Page was on the phone with Washington Post reporter Devlin Barrett, then with the New York Times, the reopening of the Clinton Foundation investigation hit the news cycle – just one example in a series of text messages matching up with MSM reports relying on leaked information, as reported by the Conservative Treehouse.

♦Page: 5:19pm “Still on the phone with Devlin. Mike’s phone is ON FIRE.”

♥Strzok: 5:29pm “You might wanna tell Devlin he should turn on CNN, there’s news on.”

♦Page: 5:30pm “He knows. He just got handed a note.”

♥Strzok: 5:33pm “Ha. He asking about it now?”

♦Page: 5:34pm “Yeah. It was pretty funny. Coming now.”

At 5:36pm Devlin Barrett tweets:

Devlin Barrett

@DevlinBarrett

This is a possibility, per sources

Naveed Jamali

@NaveedAJamali

Here’s what I believe: account on device had email account already reviewed. In spite of that, FBI has decided to re-review. Not new emails

The newly released Strzok-Page texts reveal more of the same:

Chuck Ross@ChuckRossDC

Timeline is crucial here:
April 10, 2017: Strzok sends text to Lisa Page regarding “media leak strategy.”
April 11, 2017: WaPo publishes the bombshell Carter Page FISA story.
April 12, 2017: Strzok texts Lisa Page about Carter Page stories. http://dailycaller.com/2018/09/10/strzok-media-leak-text/  @dailycaller

FBI Officials Discussed ‘Media Leak Strategy’ Ahead Of Major Trump-Russia Revelation

Today’s entertainment gossip and chatter

dailycaller.com

The review of the documents suggests that the FBI and DOJ coordinated efforts to get information to the press that would potentially be “harmful to President Trump’s administration.” Those leaks pertained to information regarding the Foreign Intelligence Surveillance Court warrant used to spy on short-term campaign volunteer Carter Page.

The letter lists several examples:

  • April 10, 2017: (former FBI Special Agent) Peter Strzok contacts (former FBI Attorney) Lisa Page to discuss a “media leak strategy.” Specifically, the text says: “I had literally just gone to find this phone to tell you I want to talk to you about media leak strategy with DOJ before you go.”
  • April 12, 2017: Peter Strzok congratulates Lisa Page on a job well done while referring to two derogatory articles about Carter Page. In the text, Strzok warns Page two articles are coming out, one which is “worse” than the other about Lisa’s “namesake”.” Strzok added: “Well done, Page.” –Sara Carter

Meadows says that the texts show “a coordinated effort on the part of the FBI and DOJ to release information in the public domain potentially harmful to President Donald Trump’s administration.

We’re sure Rosenstein will get right on it…

 

-END-

And further swamp stories courtesy of the King report and special thank you to Chris Powell for sending this to us;

Now that Papadopoulos has been sentenced to 14 days in jail for lying to the FBI, he spilling his guts.
(from the King report)
@GeorgePapa19: I introduced candidate Trump to the Egyptian president during the campaign. A president who’s country I actually had deep connections to, and the campaign accepted. I failed to introduce him to Putin
Alexander Downer [ex-Australian Foreign Minister] wanted to meet under incredibly suspicious circumstances.  I found it so odd that Downer, who gained notoriety in Australia for wearing women’s fish nets, invited me to “order” me to stop “bothering” his good friend David Cameron. And told me my views were hostile to British interests.
    So basically, for those paying attention, we have a Clinton friend, connected to the MI6, and private intelligence organizations in London, probing me about my ties to the energy business offshore Israel.   Nothing about the US-Australia relationship.  Yet I supposedly told THAT individual about emails. Something I have no recollection ever discussing.
New Texts Reveal FBI Leaked Information to the Press to Damage Trump
The above story probably is a setup for Trump to declassify and release documents related to possible FISA abuse and Ohr’s 302s (FBI reports of its interviews with Ohr).
Byron York: When a foreign adversary meddled in a presidential election
The country doing the meddling, of course, was China, and the presidential candidate was Bill Clinton, who was already in the White House and seeking re-election in 1996…
    It’s striking how brazen a number of the players were as they went about the task of funneling illegal foreign donations to the Clinton campaign and the Democratic National Committee. The names have been mostly forgotten now — Charlie Trie, John Huang, Johnny Chung — but the record remains…
end

WE WILL SEE YOU ON WEDNESDAY NIGHT.

 

 

HARVEY

 

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