SEPT 13/GOLD DOWN $2.65 TO $1202.95/SILVER DOWN 2 CENTS TO $14.22/SKRIPAL SUSPECTS INTERVIEWED ON RT AND IT DOES NOT LOOK LIKE THEY DID THE CRIMINAL ACT/TURKEY RAISES 7 DAY INTEREST RATE TO 24% BASICALLY KILLING OFF ALL OF THEIR BUSINESSES/ERDOGAN VERY ANGRY AT HIS SON IN LAW CENTRAL BANKER/HERE WE GO AGAIN: ANOTHER ME TOO ACCUSER ACCUSES KAVANAUGH OF A SEXUAL MISCONDUCT WHILE THEY WERE IN HIGH SCHOOL/MORE SWAMP STORIES FOR YOU TONIGHT/

 

 

GOLD: $1202.95 DOWN  $2.65 (COMEX TO COMEX CLOSINGS)

Silver:   $14.22  DOWN 2 CENTS (COMEX TO COMEX CLOSING)

 

Closing access prices:

Gold $1201.95

silver: $14.19

 

 

 

 

 

For comex gold:

SEPT/

 

And now Sept:

NUMBER OF NOTICES FILED TODAY FOR SEPT CONTRACT:  0 NOTICE(S) FOR NIL OZ  

Total number of notices filed so far for Sept:  551 for 55100 (1.7138 tonnes)

 

 

For silver: 

Sept

83 NOTICE(S) FILED TODAY FOR

415,000 OZ/

Total number of notices filed so far this month: 5723 for 28,615,000 oz

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Bitcoin: BID $6407/OFFER $6492: UP  $111(morning)

Bitcoin: BID/ $6388/offer $6474: UP  $92(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: $1209.73

NY price  at the same time:$1204.50

 

PREMIUM TO NY SPOT: $5.23

XX

Second gold fix early this morning: $ 1209.13

 

 

USA gold at the exact same time:$1204.80

 

PREMIUM TO NY SPOT:  $4.33

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 2166 CONTRACTS FROM 208,969 DOWN TO 206,803 DESPITE  YESTERDAY’S  9 CENT RISE IN SILVER PRICING AT THE COMEX. TODAY WE  MOVED FURTHER 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 GOOD SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:

24 EFP’S FOR SEPT.  496 EFP’S FOR DECEMBER AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 520 CONTRACTS. WITH THE TRANSFER OF 520 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 2.600MILLION OZ  ACCOMPANYING:

1.THE 9 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 30.475 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: 

18,871 CONTRACTS (FOR 8 TRADING DAYS TOTAL 18,871 CONTRACTS) OR 94.355 MILLION OZ: (AVERAGE PER DAY: 2358 CONTRACTS OR 11.794 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF SEPT:  94,355 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 13.47% 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:           2,132.18    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 2166 DESPITE THE 9 CENT RISE IN SILVER PRICING AT THE COMEX YESTERDAY. THE CME NOTIFIED US THAT WE HAD A SMALL SIZED EFP ISSUANCE OF 520  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 CONSIDERABLE SIZED: 1646 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:

i.e 520 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH A DECREASE OF 2166  OI COMEX CONTRACTS. AND ALL OF THIS LACK OF DEMAND HAPPENED WITH A 9 CENT RISE IN PRICE OF SILVER  AND A CLOSING PRICE OF $14.24 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 30.475 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. 1.034 MILLION OZ TO BE EXACT or 148% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT AUGUST MONTH/ THEY FILED AT THE COMEX: 83 NOTICE(S) FOR 415,000 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 30.475 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 CONSIDERABLE SIZED 2040 CONTRACTS UP TO 471,490 WITH THE GAIN IN THE COMEX GOLD PRICE/YESTERDAY’S TRADING (A RISE IN PRICE OF $8.00)THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 8969 CONTRACTS:

OCTOBER HAD EFP’S ISSUED AND, DECEMBER HAD AN ISSUANCE OF 8969 CONTACTS  AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 471,490. 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 11,009 CONTRACTS:  2040 OI CONTRACTS INCREASED AT THE COMEX AND 8969 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN:  11,009 CONTRACTS OR 1,100,900 OZ = 34.24 TONNES.  AND ALL OF THIS HUGE  DEMAND  OCCURRED WITH A RISE IN THE PRICE OF GOLD/ YESTERDAY TO THE TUNE OF $8.00

 

 

 

YESTERDAY, WE HAD 8670 EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF SEPT : 67,337 CONTRACTS OR 6,733,700 OZ OR 209.44 TONNES (8 TRADING DAYS AND THUS AVERAGING: 8417 EFP CONTRACTS PER TRADING DAY OR 841,700 OZ/ TRADING DAY),,

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 8 TRADING DAYS IN  TONNES: 209.44 TONNES

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

THUS EFP TRANSFERS REPRESENTS 209.44/2550 x 100% TONNES =  8.21% OF GLOBAL ANNUAL PRODUCTION SO FAR IN JULY ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:     5,406.36*  TONNES   *SURPASSED ANNUAL PROD’N

ACCUMULATION OF GOLD EFP’S FOR JANUARY 2018:           653.22  TONNES (21 TRADING DAYS)

ACCUMULATION OF GOLD EFP’S FOR FEBRUARY 2018:         649.45 TONNES  (20 TRADING DAYS)

ACCUMULATION OF GOLD EFP’S FOR MARCH 2018:             741.89 TONNES  (22 TRADING DAYS)

ACCUMULATION OF GOLD EFP’S FOR APRIL 2018:                 713.84 TONNES  (21 TRADING DAYS)

ACCUMULATION OF GOLD EFP’S FOR MAY 2018:                   693.80 TONNES ( 22 TRADING DAYS)

ACCUMULATION OF GOLD EFP FOR JUNE 2018                      650.71 TONNES  (21 TRADING DAYS)

ACCUMULATION OF GOLD EFP FOR JULY 2018                       605.5 TONNES     (21 TRADING DAYS)

ACCUMULATION OF GOLD EFP FOR AUG. 2018                       488.54  TONNES  (23 TRADING DAYS)

WHAT IS ALARMING TO ME, ACCORDING TO OUR LONDON EXPERT ANDREW MAGUIRE IS THAT THESE EFP’S ARE BEING TRANSFERRED TO WHAT ARE CALLED SERIAL FORWARD CONTRACT OBLIGATIONS AND THESE CONTRACTS ARE LESS THAN 14 DAYS.  ANYTHING GREATER THAN 14 DAYS, THESE MUST BE RECORDED AND SENT TO THE COMPTROLLER, GREAT BRITAIN TO MONITOR RISK TO THE BANKING SYSTEM.  IF THIS IS INDEED TRUE, THEN THIS IS A MASSIVE CONSPIRACY TO DEFRAUD AS WE NOW WITNESS A MONSTROUS TOTAL EFP’S ISSUANCE AS IT HEADS INTO THE STRATOSPHERE

Result: A CONSIDERABLE SIZED INCREASE IN OI AT THE COMEX OF 2040 WITH THE GAIN IN PRICING ($3.00 THAT GOLD UNDERTOOK YESTERDAY) // .  WE ALSO HAD A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 8969 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 8969 EFP CONTRACTS ISSUED, WE HAD A STRONG GAIN OF 11,009 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

8969 CONTRACTS MOVE TO LONDON AND 2040 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 34.24 TONNES). ..AND THIS HUGE DEMAND OCCURRED WITH A RISE OF $8.00 IN YESTERDAY’S TRADING AT THE COMEX.

 

 

we had: 0 notice(s) filed upon for NIL oz of gold at the comex.

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

GLD...

WITH GOLD DOWN $2.65  TODAY: / 

NO CHANGES IN GOLD INVENTORY AT THE GLD:

 

 

 

/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 2  CENTS TODAY

 

 

WE HAD A HUGE CHANGES FOR SILVER : A DEPOSIT OF 1.316 MILLION OZ INTO THE SLV INVENTORY

 

 

 

 

/INVENTORY RESTS AT 334.973 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 2166 CONTRACTS from 208,969 DOWN TO  206,803  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:

 

24 EFP CONTRACTS FOR SEPTEMBER, 496 CONTRACTS FOR DECEMBER AND  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 520 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 2166 CONTRACTS TO THE 520 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A NET LOSS OF 1646 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES: 8.230 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 30.475  MILLION OZ INITIALLY STAND FOR SILVER IN SEPTEMBER….

 

 

RESULT: A CONSIDERABLE SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE 9 CENT PRICING GAIN THAT SILVER UNDERTOOK IN PRICING YESTERDAY. BUT WE ALSO HAD A SMALL SIZED 520 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR SEPTEMBER, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

 

 

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i) THURSDAY MORNING/ WEDNESDAY NIGHT: Shanghai closed UP 30.47 POINTS OR 1.15%   /Hang Sang CLOSED UP 669.45 POINTS OR 2.54%/   / The Nikkei closed UP 216.71 POINTS OR 0.96%/Australia’s all ordinaires CLOSED DOWN 0.70%  /Chinese yuan (ONSHORE) closed DOWN  at 6.8668 AS POBC STOPS  ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER/Oil DOWN to 69.44 dollars per barrel for WTI and 79.17 for Brent. Stocks in Europe OPENED GREEN //.  ONSHORE YUAN CLOSED UP AT 6.8468 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8429: HUGE DEVALUATION/PAST SEVERAL DAYS STOPS// TRADE TALKS NOT DOING TOO GOOD   : /ONSHORE YUAN TRADING  WEAKER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING  STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

 

 

 

 

 

 

3A/NORTH KOREA/SOUTH KOREA

i)North Korea/South Korea/USA/

 

 

 

 

b) REPORT ON JAPAN

 

3 C/  CHINA

 

 

 

4/EUROPEAN AFFAIRS

i)UK

Bank of England keeps rates unchanged and this was widely expected

( zerohedge)

ii)EU/ECB

The euro and gold surge as Draghi forecasts significantly stronger core inflation
( zerohedge)

iii)UK/RUSSIA/SKRIPAL POISONING

The two suspects have been interviewed by RT and give a full account of their activities in England.  There is no way that these guys did the criminal act
( zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)TURKEY/ EARLY THIS MORNING:

TURKISH lira crashes to 6.55 after Erdogan attacks his central bank hours before a rate decision. Must be fun in his household as the chief central banker is his son in law

( zerohedge)

ii)Our Turkish Central banker, the son in law of Erdogan, is certainly going to have lots of scorn in his household as he raised interest rates rise by a massive 625 basis points to 24%.  That will certainly kill off most of their businesses inside Turkey

(courtesy zerohedge)

iii)We have been highlighting to you the ambitions of Erdogan over the past year.  Several authors have stated that Turkey is deficient in energy and the Turkish leader will encroach on other sovereign territories to secure their much needed oil and gas.  This is why they covet the Cyprus big gas field discovered by the Israelis over 4-5 years ago.  The Israelis will protect the Cypriots.

( zerohedge)

iv)Turkey’s new sovereign Wealth Fund Chairman: none other than Erdogan
( zerohedge)

v)Iran/Turkey

Interesting move by wealthy Iranians:  they are buying property in Turkey mainly in Istanbul,  Both of these countries are witnessing their currency collapse.
( zerohedge

vi)Russia/USA

The USA will introduce more severe sanctions on Russia over the Skripal case.  This time it will be aimed at the venerable banks

( zerohedge)

vii)Good reason to knock gold down today;  USA destroyer enters the Mediterranean as Syrian tensions escalate.  Also a uSA carrier is on standby
( zerohedge)

6. GLOBAL ISSUES

 

 

 

7. OIL ISSUES

 

 

8 EMERGING MARKET ISSUES

Argentina

Argentina’s annual inflation rate just hit 34.4% with the Peso hitting an all time low of 39.55 to the dollar

(courtesy Gillespie/Bloomberg)

 

 

9. PHYSICAL MARKETS

i)the drunkard Juncker vows to turn the euro into a reserve currency. Wishful thinking

( GATA/London’s Financial Times)

ii)Craig Hemke of Sprott Money suggests the data is not to bullish for paper gold and silver

( Craig Hemke/Sprott/GATA)

iii)These guys come up with a novel thought that gold and silver are under valued

(courtesy USAgold/GATA)

 

iv)Interesting:  the head of a Russian bank, VTB, stated that because of the USA sanctions customers may not get dollars back from their dollar account

( Bloomberg/GATA)

 

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

 

i)Market trading /GOLD/MARKET MOVERS:

MARKET TRADING

 
ii)Market data

Consumer prices supposedly have been contained at 2.7% vs expectations of a 2.8% rise. However services are still very much inflationary. Even hour earnings are on the rise and this in very inflationary!! The dollar tanks, yields tank

(courtesy zerohedge)

 

 

iii)USA ECONOMIC/GENERAL STORIES

a)The White House threatens a military response against any Iran backed militias attack into Iraq
( zerohedge)

b)Goldman Sachs warns of a huge 6 trillion dollars in losses in a global trade war.

( Goldman Sachs/zerohedge)

c)Even though the storm has been reduced to a category 2, Florence is expected to crate huge damage in excess of 30 billion dollars

(courtesy zerohedge)

d)That did not last long:  Trump states that contrary to Mnuchin, the USA is under no pressure to make a deal with China

(courtesy zerohedge)

e)A detailed look at the August budget deficit which just hit a huge 222 billion dollars for the month, the highest deficit of recorded history.  Spending advanced by a whopping 433 billion dollars

(your detailed August budgetary deficit/zerohedge)

iv)SWAMP STORIES

a)Unbelievable:  at the 11th hr we have a #MeToo accuser who will not come forward.  The incident happened while both the accuser and Kavanaugh were in high school.

please give me a break!!

(courtesy zerohedge)

b)From the King report and special thanks from Chris Powell for sending this to us:

( King report

 

Let us head over to the comex:

 

The total gold comex open interest ROSE BY A CONSIDERABLE SIZED 2040 CONTRACTS UP to an OI level 471,490 WITH THE RISE IN THE PRICE OF GOLD ($8.00 GAIN/ YESTERDAY’S COMEX TRADING). FOR TWO YEARS STRAIGHT WE HAVE NOTICED THAT ONE WEEK PRIOR TO FIRST DAY NOTICE OF AN ACTIVE DELIVERY MONTH THE COMEX OPEN INTEREST CONTRACTS AND EFP’S NOTICES EXPONENTIALLY INCREASE AS WELL AS WE WITNESS THE COMEX OPEN INTEREST COLLAPSE. IT IS UNUSUAL TO SEE THE OPEN INTEREST IN GOLD CONTINUE TO CONTRACT AS WE START A NEW MONTH (SIMILAR TO WHAT WE ARE WITNESSING IN SILVER).  MAYBE THE BANKS ARE TRYING TO UNLOAD AS MANY AS POSSIBLE OF THEIR SHORT PAPER GOLD/SILVER CONTRACTS.

 

WE ARE NOW IN THE  NON ACTIVE DELIVERY MONTH OF SEPT..  THE CME REPORTS THAT THE BANKERS ISSUED A  GOOD SIZED COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 8969 EFCONTRACTS WERE ISSUED:

OCTOBER: 0 EFP’S AND DECEMBER:  8969 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  8969 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 11,009 TOTAL CONTRACTS IN THAT 8969 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED 2040 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES:  11,009 contracts OR 1,100,900  OZ OR 34.24 TONNES.

Result: A CONSIDERABLE SIZED INCREASE IN COMEX OPEN INTEREST WITH THE GAIN IN PRICE/ YESTERDAY (ENDING UP WITH THE GAIN IN PRICE OF $8.00). THE  TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES:  11,009 OI CONTRACTS..

We are now in the active contract month of SEPTEMBER. For the September contract month, we gained 22 contracts and thus the number of  open interest contracts standing for gold in this front month is 53 contracts. We had 14 notices filed  yesterday so we surprisingly again gained 36 contracts or an additional 3600 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 and now every day we are witnessing this event in gold.

 

 

 

 

 

THE NEXT ACTIVE DELIVERY MONTH IS  OCTOBER AND HERE THE OI LOST 99 CONTRACTS DOWN TO 37,789. NOVEMBER SAW A 9 CONTRACT GAIN TO STAND AT 35. DECEMBER SAW ITS OPEN INTEREST GAIN BY 1245 CONTRACTS UP TO 362,874.

WE HAD 0 NOTICES FILED AT THE COMEX FOR NIL OZ.

 

FOR THE UPCOMING SEPT GOLD CONTRACT MONTH;

 

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

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

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total silver OI FELL BY A CONSIDERABLE SIZED 2166 CONTRACTS FROM 208,969 DOWN TO 206,803 (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 9 CENT GAIN IN PRICING.

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF SEPT.AND, WE WERE  INFORMED THAT WE HAD A SMALL SIZED 520 EFP CONTRACTS:

FOR SEPT:  24 CONTRACTS  AND FOR DECEMBER: 496 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: 520.  ON A NET BASIS WE LOST 1646 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED 2166 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 520 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET LOSS ON THE TWO EXCHANGES:   1646 CONTRACTS…AND ALL OF THIS LACK OF  DEMAND OCCURRED WITH A  9 CENT GAIN

 

 

 

The next active delivery month after August for silver is September and here the OI FELL by 7 contracts DOWN to 455.

We had 15 notices filed on yesterday so we gained 8 contracts or 40,000 ADDITIONAL oz will 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. After a little holiday,queue jumping in the silver pits resumed in earnest today.

 

 

 

 

October lost 21  contracts to stand at 561. November saw a gain of 26 contracts to stand at 67.

After Nov., the next big delivery month is December and here the OI fell by 2201 contracts down to 180,144 contracts.

We had 83 notice(s) filed for 415,000 OZ for the SEPTEMBER 2018 COMEX contract for silver

 

 

 

Trading Volumes on the COMEX

 

PRELIMINARY COMEX VOLUME FOR TODAY: 299,034 contracts

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  314,914 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 30.475 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. 13-/2018.

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

nil

oz

 

 

No of oz served (contracts) today
0 notice(s)
 NIL OZ
No of oz to be served (notices)
53 contracts
(5300 oz)
Total monthly oz gold served (contracts) so far this month
551 notices
55100 OZ
1.7138 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 had no activity at  the comex and still no gold entering the comex vaults.

 

we had 0 kilobar transaction/
We had 0 inventory movement at the dealer accounts
total inventory deposit into the dealer accounts:  NIL  oz
total inventory withdrawals out of dealer accounts; nil oz
we had 0 withdrawal out of the customer account:
i
total customer withdrawals:  nil 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 0 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account.

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 (551) x 100 oz or 55,100 oz, to which we add the difference between the open interest for the front month of SEPT. (53 contracts) minus the number of notices served upon today (0 x 100 oz per contract) equals 60,400 OZ OR 1.8786 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 (551 x 100 oz)  + {53)OI for the front month minus the number of notices served upon today (0 x 100 oz )which equals 60,400 oz standing OR 1.8786 TONNES in this NON  active delivery month of SEPTEMBER.

Strangely, we added 36 contracts or an additional 3600 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 1.8786 TONNES STANDING FOR SEPTEMBER  

 

 

 

total registered or dealer gold:  145,041.066 oz or   4.511tonnes
total registered and eligible (customer) gold;   8,326,629.530 oz 258.99 tonnes

IN THE LAST 25 MONTHS 96 NET TONNES HAS LEFT THE COMEX.

end

And now for silver

AND NOW THE AUGUST DELIVERY MONTH

SEPTEMBER INITIAL standings/SILVER

SEPT. 13/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
 60,892.950 oz
Scotia

 

 

Deposits to the Dealer Inventory
nil
oz
Deposits to the Customer Inventory
nil
oz
No of oz served today (contracts)
83
CONTRACT(S)
(415,000 OZ)
No of oz to be served (notices)
372 contract
(1,860,000 oz)
Total monthly oz silver served (contracts) 5723 contracts

(28,615,000 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  1 withdrawals from the customer account;

i) Out of Scotia:  60,892.950 oz

 

 

 

 

 

 

 

total withdrawals: 60,892.950 oz

we had 1  adjustment

i) out of Scotia  408,669.690 oz was adjusted out of the customer and this landed into the dealer account of Scotia

 

 

 

 

 

 

 

 

total dealer silver:  90.029 million

total dealer + customer silver:  293.166 million oz

The total number of notices filed today for the SEPTEMBER. contract month is represented by 83 contract(s) FOR 415,000 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 5723 x 5,000 oz = 28,615,000 oz to which we add the difference between the open interest for the front month of SEPTEMBER. (455) and the number of notices served upon today (83 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the SEPT/2018 contract month: 5723(notices served so far)x 5000 oz + OI for front month of SEPTEMBER(455) -number of notices served upon today (83)x 5000 oz equals 30,475,000 oz of silver standing for the SEPT contract month.  This is a huge number of oz standing!!

We gained 8 contracts or an additional 40,000 oz will stand at the comex as these guy refused to morph into London based forwards as well as refusing a fiat bonus

 

 

 

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

ESTIMATED VOLUME FOR TODAY:  84,809 CONTRACTS   

 

 

CONFIRMED VOLUME FOR YESTERDAY: 91,150 CONTRACTS..

 

 

YESTERDAY’S CONFIRMED VOLUME OF 91,150CONTRACTS EQUATES TO 455 million OZ  OR 65.1% OF ANNUAL GLOBAL PRODUCTION OF SILVER

COMMODITY LAW SUGGESTS THAT OPEN INTEREST SHOULD NOT BE MORE THAN 3% OF ANNUAL GLOBAL PRODUCTION. THE CROOKS ARE SUPPLYING MASSIVE PAPER TRYING TO KEEP SILVER IN CHECK.

The record level of silver open interest is 234,787 contracts set on April 21./2017 with the price at that day at $18.42
The previous record was 224,540 contracts with the price at that time of $20.44

end

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV RISES TO -3.27% (SEPT.12/2018)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.40% to NAV (SEPT 12/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -3.27%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 12.13/TRADING 11.69/DISCOUNT 3.56.

END

And now the Gold inventory at the GLD/

SEPT 13/WITH GOLD DOWN $2.65:NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 745.18 TONNES

SEPT 12/WITH GOLD UP $8.00 TODAY:NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 745.18 TONNES

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.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

SEPT 13/2018/ Inventory rests tonight at 745.18 tonnes

*IN LAST 455 TRADING DAYS: 185.53 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 355 TRADING DAYS: A NET 28,99 TONNES HAVE NOW BEEN REMOVED FROM GLD INVENTORY.

 

end

 

Now the SLV Inventory/

SEPT 13/WITH SILVER DOWN 2 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.316 MILLION OZ OF SILVER ENTERS SLV INVENTORY/INVENTORY RESTS AT 334.973 MILLION OZ/

SEPT 12/WITH SILVER UP 9 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 333.657 MILLION OZ/

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 13/2018:

Inventory 334.973 MILLION OZ

 

6 Month MM GOFO 2.02/ and libor 6 month duration 2.56

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

G0FO+ 2.02

 

libor 2.56 FOR 6 MONTHS/

GOLD LENDING RATE: .54%

XXXXXXXX

12 Month MM GOFO
+ 2.48%

LIBOR FOR 12 MONTH DURATION: 2.86

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.38

end

 

Major gold/silver trading /commentaries for THURSDAY

GOLDCORE/BLOG/MARK O’BYRNE.

 

Video: BREXIT To Contribute To London Property Bubble Bursting

Video: BREXIT To Contribute To London Property Bubble Bursting

– Brexit in conjunction with severe price unaffordability, rising interest rates and global economic uncertainty is leading to sharp price falls in London home prices

– London home prices have fallen five months in a row with property prices more than 7% lower in 12 months in some areas

–  The Economist has done research which suggests that London house prices are 50% overvalued and Dublin house prices are 25% overvalued

– The Economist believes that there are many cities with properly bubbles vulnerable to sharp corrections due to rising interest rates and geopolitical uncertainty and  unaffordability

– Reuters poll of housing market analysts and experts predicted that London house prices will continue to fall in 2018 and 2019, with a one-in-three chance of a house price crash

Watch Full Video and Subscribe On YouTube

 

News and Commentary

Juncker vows to turn euro into reserve currency to rival petro-dollar (Politico.eu)

Gold near 1-wk highs as Sino-U.S. trade talk hopes hurt dollar (Reuters.com)

The Fed is trying to finally get back to ‘normal’ after the crisis (CNBC.com)

As Trump embraces more tariffs, U.S. business readies public fight (Reuters.com)

U.S. producer prices post first drop in one-and-a-half years (Bloomberg.com)


Source: SilverInstitute.org

Euro Has the Power to Challenge the Dollar (Bloomberg.com)

The next financial crisis ‘will be more severe’ socially and politically, says billionaire investor Dalio (MarketWatch.com)

Gundlach Says Dollar’s Next Move May Be Downward (Bloomberg.com)

Here’s why one analyst just made a ‘rare’ call to buy some gold (MarketWatch.com)

China to Continue Driving Global Silver Market Forward (SilverInstitute.org)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below


Gold Prices (LBMA AM)

12 Sep: USD 1,197.80, GBP 919.07 & EUR 1,033.10 per ounce
11 Sep: USD 1,194.00, GBP 915.92 & EUR 1,028.75 per ounce
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

Silver Prices (LBMA)

12 Sep: USD 14.16, GBP 10.90 & EUR 12.22 per ounce
11 Sep: USD 14.13, GBP 10.85 & EUR 12.19 per ounce
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


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– This Week’s Golden Nuggets
– Video: “Financial War” Deepens as Russia Buys Gold and Dollar Hegemony At Risk – Rickards on CNN
– Will Indebted Nations Globally Follow Venezuela Into Hyperinflation?
– End Of Dollar Hegemony May Happen Soon and Badly Impact Indebted America

Mark O’Byrne
Executive Director
 
 
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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

the drunkard Juncker vows to turn the euro into a reserve currency. Wishful thinking

(courtesy GATA/London’s Financial Times)

Juncker vows to turn euro into reserve currency to rival dollar

 Section: 

By Mehreen Khan and Jim Brunsden
Financial Times, London
Wednesday, September 12, 2018

Jean-Claude Juncker has vowed to turn the euro into a global reserve currency that could rival the dollar as part of the European Union’s drive to reduce its financial dependence on the United States.

In his last “State of the Union” speech to members of the European Parliament in Strasbourg today, the president of the European Commission said it was an “aberration” that the EU paid for more than 80 percent of its energy imports in U.S. dollars despite only 2 percent of imports coming from the U.S.

Most of the dollar-denominated imports are from Russia and the Gulf states.

“We will have to change that. The euro must become the active instrument of a new sovereign Europe,” said Mr. Juncker, whose five-year tenure as commission president is due to end next year.

… For the remainder of the report:

https://www.ft.com/content/7358f396-b66d-11e8-bbc3-ccd7de085ffe

END

Craig Hemke of Sprott Money suggests the data is not to bullish for paper gold and silver

(courtesy Craig Hemke/Sprott/GATA)

Craig Hemke at Sprott Money: Trader data not so

bullish for gold, silver

 Section: 

3:27p ET Wednesday, September 12, 2018

Dear Friend of GATA and Gold:

Trader positioning data in gold and silver futures in the United States is not as bullish as the prevailing analysis describes, the TF Metals Report’s Craig Hemke writes today at Sprott Money. Particularly, Hemke writes, nothing in the data shows that JPMorganChase & Co., the big player in the monetary metals markets, has gone long in the monetary metals.

Hemke’s commentary is headlined “What Is a Bank and What Is a Commercial?” and it’s posted at Sprott Money here:

https://www.sprottmoney.com/Blog/what-is-a-bank-and-what-is-a-commercial…

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

END

These guys come up with a novel thought that gold and silver are under valued

(courtesy USAgold/GATA)

USAGold’s News & Views September newsletter is up

 Section: 

4:08p ET Wednesday, September 12, 2018

Dear Friend of GATA and Gold:

USAGold’s News & Views newsletter for September features an essay by Thorsten Polleit of the Degussa Market Report arguing that gold is undervalued at the moment, as well as a digest of other gold-related news and commentary. It’s posted in the clear at USAGold here:

http://www.usagold.com/publications/NewsViewsSEPT2018.html

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

END

Interesting:  the head of a Russian bank, VTB, stated that because of the USA sanctions customers may not get dollars back from their dollar account

(courtesy Bloomberg/GATA)

Head of Russian bank warns customers they may not get dollars back

 Section: 

By Annmarie Hordern and Jake Rudnitsky
Bloomberg News
Wednesday, September 12, 2018

Russians with bank accounts in dollars may find they can only make withdrawals in other currencies if new sanctions proposed by U.S. lawmakers take effect.

“I am sure that all the clients of all banks should receive their money back. That’s the principal approach,” VTB Group Chief Executive Officer Andrey Kostin said today. “How, in which currency, is a different story.

The U.S. Senate is considering punishing the Kremlin for alleged election meddling, including a fresh raft of measures dubbed the “bill from hell.” This could bar Americans from buying new issues of Russian sovereign debt and ban Russia’s largest state banks, such as VTB, from using dollars.

Kostin’s comments are an indication to markets that policy makers and businesses are bracing for the worst, and could focus investors’ attention on the possible fallout from sanctions, according to Liza Ermolenko, an economist at Barclays Capital in London. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-09-12/russians-may-have-to-…

end

A good commentary on how physical gold accumulations will kill the petrodollar

(courtesy Stefan Gleason)

Gold accumulations could checkmate the petrodollar

September 13, 2018

by: Stefan Gleason*

President Donald Trump’s administration is playing a game of high-stakes international chess with Russia, Iran, Turkey, China, and other countries viewed as adversaries in trade and geopolitics.

It’s not necessarily the case that tariffs, sanctions, and blustering will result in a hot war. More likely, escalating strife between the U.S. and a bloc of much more populous adversaries will push them to unite more closely to undermine and ultimately dethrone King Dollar.

The U.S. has long been the grandmaster – the dominant player on the geopolitical board – owing largely to its unique reserve currency status.

Quite simply, the U.S. dollar is the go-to currency for world trade. Oil and gold are traded in dollars. Manufactured goods on the international market are traded in dollars. All other currencies are measured against the dollar.

Nations Anxiously Moving to Dollar Alternatives

But all that is in the process of changing. As Washington, D.C.’s international adversaries pursue contra-dollar alliances, it could soon be checkmate for King Dollar.

President Trump recently touted tariffs designed to punish Turkey. The tariffs triggered the biggest financial crisis Turkey has seen in decades.

That may well have been the intended consequence. But the unintended consequence is that Turkey is now being pushed to form stronger economic ties with Iran… which in turn is forming stronger ties with Russia… which in turn is forming stronger ties with China.

Russian Central Bank Gold Reserves

The countries being targeted with tariffs and sanctions have a much larger combined GDP and a combined population that is multiples of the United States.’ What if a contra-dollar bloc formed that was determined to isolate the U.S. from the world financial system?

Russian Deputy Foreign Minister Sergei Ryabkov recently told International Affairs, “The time has come when we need to go from words to actions and get rid of the dollar as a means of mutual settlements and look for other alternatives.”

Foreign Gold Buying Is Ramping Up

One of those alternatives is gold. The Central Bank of Russia is ramping up its gold buying and reducing its holdings of U.S. Treasuries. In recent years, in fact, Russia has been the largest official buyer of gold – followed closely by China.

Earlier this year, the Shanghai International Energy Exchange launched a futures contract for crude oil priced in Chinese yuan. Now Chinese and other international traders can trade the world’s most important energy commodity in a liquid market without using U.S. dollars.

China has also launched a pilot program to purchase oil from Russia and Angola (two of its top suppliers) using yuan. It’s another gambit in the currency war being fought by major powers that have been targeted by the U.S. administration for punishment.

Those calls turned out to be premature. The petro-dollar lived to fight another decade, boosted the perception of the U.S. dollar as a safe haven during the financial crisis and later by the shale oil fracking boom that saw North American oil production surge.

Whether this method of production is sustainable at current oil prices remains to be seen. What’s not sustainable is the U.S. government (officially $21 trillion in debt) being able to extend itself militarily and through punitive economic measures to prop up the petro-dollar.

According to Gal Luft of the Institute for the Analysis of Global Security, “The main front where the future of the dollar will be decided is the global commodity market, especially the $1.7 trillion oil market.”

The Dollar’s Dominance in Global Transactions May End on Trump’s Watch

If China wants to buy oil from Saudi Arabia in yuan, from Russia in rubles or from Iran in gold, then OPEC nations and other major energy exporters will surely figure out how to accommodate their biggest customers.

Dollar Weakens

Whether a new global standard emerges or multiple competing standards rise in tandem, the dollar’s multi-decade run as the world’s dominant transactional currency could end on Trump’s watch.

The trend in the value of the dollar versus other fiat currencies and gold is another question.

China doesn’t actually want the greenback to go down versus its yuan – at least not at this point in the currency wars.

The one alternative currency that stands to benefit as the major national currencies battle each other is gold. It’s the only monetary asset that has proven to be resilient against all economic and geopolitical threats.

*Stefan Gleason is President of Money Metals Exchange,  the national precious metals company named 2015 “Dealer of the Year” in the United States by an independent global ratings group. 

-END-

___________________________________________________________________________________________________________________________________________________________________________________

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

i) Chinese yuan vs USA dollar/CLOSED UP TO 6.8468/HUGE DEVALUATION FOR THE PAST FOUR WEEKS RESUMES/CHINESE COMING TO USA FOR TRADE TALKS IN NOVEMBER //OFFSHORE YUAN:  6.8429   /shanghai bourse CLOSED UP 30.47 POINTS OR 1.15% /HANG SANG CLOSED UP 669.45 POINTS OR 2.54%
2. Nikkei closed UP 216.71 POINTS OR 0.96%/USA: YEN FALLS TO 111.55/

3. Europe stocks OPENED  IN THE GREEN EXCEPT LONDON  

 

/USA dollar index RISES TO 94.86/Euro RISES TO 1.1633

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

 

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 69.44  and Brent: 79.17

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO +.420%/Italian 10 yr bond yield UP to 2.95% /SPAIN 10 YR BOND YIELD UP TO 1.46%

3j Greek 10 year bond yield FALLS TO : 4.03

3k Gold at $1206.10 silver at:14.22   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 78 /100 in roubles/dollar) 68.22

3m oil into the 69 dollar handle for WTI and 79 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 111.55DESTROYING 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 0.9789 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1272 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now POSITIVE territory with the 10 year RISING to +0.42%

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 2.98% early this morning. Thirty year rate at 3.12%

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

6.  TURKISH LIRA:  UP  TO 6.1751

Global Stocks Rise Ahead Of Central Bank Barrage,

Inflation Data

Global trade was front and center again, after the Trump administration proposed another round of trade talks with Beijing before slapping China with $200BN in tariffs in the absence of key concessions from Beijing, while traders were on edge ahead of a slew of central bank announcements and critical CPI data in the US.

One day after Apple’s latest iPhone unveiling disappointed shareholders who sold AAPL stock and pressured tech stocks, world markets calmed and MSCI’s All World index was set for a fourth straight day of gains with S&P futures slightly higher after Asian shares jumped ending a 10 day losing streak, the longest in 16 years, on renewed hopes of fresh trade negotiations between the US and China.

Shanghai, Tokyo, Jakarta stocks all gained around 1% following Wednesday’s sharp drop in the dollar, while Hong Kong’s Hang Seng finished up 1.8%, while China’s yuan also edged higher in the currency markets even if the Shanghai Composite barely budged amid ongoing skepticism inside Ground Zero, China, that talk this time will be different.

Initially, Europe also moved higher, led by automakers with gains between 0.2% and 0.6% for German, French, Italian and Spanish shares offsetting a weaker FTSE in London which was hit by weaker oil and tobacco stocks. However, Europe’s Stoxx 600 index erased gains of as much as 0.3% as the Turkish lira plunged after country’s President Recep Tayyip Erdogan attacked the central bank for continuously missing inflation targets and saying the CBRT “should cut this high interest rate”, just hours before rate decision.

European shares have remained especially sensitive to rising EM risks, especially in Turkey, as exporters and banks have exposure to developing nations. Meanwhile, The euro edged lower and the pound was steady ahead of central bank announcements which are not expected to deliver any major surprises.

Staying in Europe there was some more Italian drama, after La Stampa reported that Italian Finance Minister Giovanni Tria called Prime Minister Giuseppe Conte to discuss the struggle over the 2019 budget and threatened to resign. The FTSE MIB was trying to bounce back after a 17% drop in the past four months, while Italian bonds declined for a third day after the nation’s latest debt auction drew weaker demand.

Meanwhile, as previewed earlier, as part of today’s ECB announcement, the biggest “surprise” will likely be that growth forecasts are tweaked lower, even as the central bank keeps its guidance on interest rates which will stay at record lows “at least through the summer” of next year. According to Bloomberg, given the highly negative sentiment toward the banks – the sector index SX7P is down more than 20% since a peak in January, trades below book value and at 9.3x expected earnings which is its lowest P/E ratio in two years, with a dividend yield of 5% – risk seems to be on the upside for the sector heading into Draghi’s press conference.

Over in the US, index futures all pointed to a slightly firmer open.

In FX, the dollar nudged higher after a weaker than expected PPI report which saw producer prices drop for the first time in 18 months, undermined the case for a faster pace of policy tightening by the Federal Reserve. The latest CPI data is due out at 8:30am today.

The euro hovered around $1.1624 having gained around 0.6 percent so far this week. The yen weakened 0.2 percent to 111.47 per dollar on the soothing trade noises. Sterling held near a six-week high of $1.3087 as Brexit-supporting lawmakers in British Prime Minister Theresa May’s party publicly pledged support for her to stay in power.

Treasuries edged lower while Italy’s bonds under-performed other European sovereign debt as speculation swirled around the fate of the country’s finance minister.

Elsewhere, emerging-market shares and currencies climbed helped by the recent weakness in the dollar, with South Africa’s rand leading the pack. Crude oil pared two days of gains made on the outlook for tighter supply. The potential impact on commodities from Hurricane Florence faded with lower wind speeds. Meanwhile copper held above $6,000 in London as metals broadly keep Wednesday’s gains on optimism around an easing in the US-China trade war.

Market Snapshot

  • S&P 500 futures up 0.09% to 2,891.00
  • STOXX Europe 600 up 0.2% to 377.96
  • MXAP up 0.9% to 160.29
  • MXAPJ up 0.9% to 512.81
  • Nikkei up 1% to 22,821.32
  • Topix up 1.1% to 1,710.02
  • Hang Seng Index up 2.5% to 27,014.49
  • Shanghai Composite up 1.2% to 2,686.58
  • Sensex up 0.8% to 37,717.96
  • Australia S&P/ASX 200 down 0.8% to 6,128.72
  • Kospi up 0.1% to 2,286.23
  • German 10Y yield rose 0.5 bps to 0.416%
  • Euro down 0.06% to $1.1619
  • Brent Futures down 0.9% to $79.03/bbl
  • Italian 10Y yield rose 0.8 bps to 2.589%
  • Spanish 10Y yield rose 0.2 bps to 1.465%
  • Brent Futures down 0.9% to $79.03/bbl
  • Gold spot down 0.03% to $1,205.82
  • U.S. Dollar Index up 0.1% to 94.92

Top Overnight News

  • U.S. government has proposed another round of trade talks with Beijing to avoid further escalation in Donald Trump’s trade war with China, the president’s top economic adviser said
  • If ECB President Mario Draghi intends to plow on with the plan to phase out asset purchases starting next month, then he’ll need to explain why the confidence of policy makers remains intact: decision day guide
  • Hurricane Florence weakened on its course to the U.S. East Coast, but is still big enough to deliver a rainy punch and threaten a huge swath of the Carolinas coastline
  • Italian bonds declined for a third day amid reports that Finance Minister Giovanni Tria threatened to quit over the country’s budget negotiations and the nation’s latest debt auction drew weaker demand
  • The ECB said banks have selected the euro short-term rate, or Ester, as their preferred replacement for Eonia, a gauge of how much they charge each other for loans
  • Erdogan published an executive decree that forces contracts between two entities in Turkey to be made in liras rather than foreign currencies
  • Australian employment jumped by more than twice economists’ estimates in August, while the jobless rate remained unchanged as more people sought jobs
  • Bank of Japan will keep policy unchanged next week, according to all economists surveyed by Bloomberg. A majority point to the central bank staying on hold until after a sales- tax increase next year
  • The EU is gambling on U.K. Prime Minister Theresa May making concessions on the Irish border to pave the way for a Brexit deal in November and are starting to redraft the language on the so-called Irish “backstop” in an attempt to make it more acceptable to Britain
  • Pro-Brexit members of May’s Conservative Party are running out of patience with her refusal to ditch her so-called Chequers proposals and will launch a formal leadership challenge against her if she does not do so in the next three weeks

Asian equity markets were positive with sentiment underpinned by hopes of a de-escalation of the trade dispute after the US invited China for trade talks which was seen to be an effort to get negotiations back on track. This lifted most the regional bourses with Nikkei 225 (+0.9%) also euphoric on better than expected Machine Orders which grew at the fastest pace since January 2016, while ASX 200 (-0.8%) bucked the trend as financials were dampened after further unscrupulous practices were revealed at banking royal commission. Elsewhere, Hang Seng (+2.5%) and Shanghai Comp. (+1.2%) were firmer with sentiment boosted by the more encouraging trade-related headlines and after the PBoC upped its liquidity efforts, while participants also digested lending data in which New Yuan Loans missed estimates although Aggregate Financing, which is the broadest measure for China’s credit growth, topped forecasts. Finally, JGBs were flat as focus centred on the region’s riskier assets, while stronger demand at today’s 5yr auction also failed to underpin prices of the 10yr.

Top Asian News

  • Nobel Prize Winner’s Microlender Enters Japan to Fight Poverty
  • Sri Lanka Says Has Been Acting to Counter Currency, Eco Risks
  • Korea Sovereign Fund Exits Investment With Paul Singer’s Elliott
  • China Welcomes U.S. Invitation for Trade Talk: Commerce Ministry

Equities are mixed, with trading tentative ahead of the BoE, ECB and CRBT rate decisions later on in the day. Major moves have been confined to equity specific stories, with Michelin’s guidance reaffirmation leading the CAC to the top of the bourse pile. Despite FTSE heavyweights RBS (announcement of a special dividend) and Glencore (base metal strength) outperforming, the FTSE is leading the losses in the index space, with SSE close to the foot of the bourse after a broker downgrade.
The IT sector is the marked sector outperformer with semiconductor names benefiting from AMD’s outperformance in the US session.

Top European News

  • European Autos Outperform on Possible New Round of Trade Talks
  • Italy Bonds Dip on Report Tria Offered to Quit on Budget Discord
  • Reports of Tria Resignation Unfounded: Finance Ministry Official

In FX, the DXY index and broad Dollar are softer post-US initiatives to resume formal trade discussions with China, but off lows and relatively side-lined ahead of US inflation data later. The DXY is attempting to nudge back up towards 95.000 from 94.767 at worst, as Usd/G10 pairings consolidate before Thursday’s headline events. AUD – The major outperformer and beneficiary of planned mediation on tariffs between Washington and Beijing, but still labouring on approaches or rebounds to 0.7200, even with the extra incentive of upbeat Aussie data overnight (August payrolls easily exceeded consensus and largely due to full time jobs). Note also, Aud/Usd flanked by hefty option expiry interest at 0.7220-30 (1 bn) and 0.7140-50 (1.1 bn). JPY – Back to the bottom of the G10 pile on the aforementioned de-escalation of global protectionism tensions, and significantly stronger than expected Japanese machinery orders, with reported domestic offers at 111.50 revisited ahead of larger supply said to be lurking between 111.60-70, plus large option expiries between 111.50-65 (2.1 bn) in the mix. EM – The Lira looks all set to grab the limelight at midday with anticipation/hype running rife for the CBRT rate decision amidst extremely wide-ranging estimates about the extent and manner of the flagged policy stance change. For the benchmark 1 week repo, forecasts span from unchanged to as much as +725 bp, while others suggest that the Bank may be more creative/subtle/restricted and tweak other official rates/corridors instead. Usd/Try poised around the middle of a 6.3385-3905 band in the run-up, while the Rand continues its impressive rebound towards 14.8000 vs the Usd on the softer Dollar overall, and with some independent encouragement from Moody’s downplaying the threat of an SA ratings downgrade.

In commodities, oil is slipping after IEA’s monthly report which reported an increased level of production by OPEC to offset falling Iranian production, and weather premiums are being unwound as Florence has weakened abit more, but is still life-threatening storm surge and rainfall is still expected. Brent futures are now hovering above USD 79.00/bbl after breaking USD 80.00/bbl in Wednesday’s trade. This is discounting the potential support offered to the fossil fuel by the closure of oil production facilities in the eastern part of the South China Sea before two typhoons hit the area. In the metals scope, gold is essentially unmoved ahead of this Thursdays Central Bank flurry, with low volumes seen as investors hold off trading the yellow metal. Shanghai copper (+2.3%) has seen its largest one-day gain in 3 months off the back of restored US-China trade talks, with nickel (+2.6%) and zinc (+2.6%) also benefiting from the improved risk tone. IEA Monthly Report: maintains their global oil demand growth forecast for 2018 and 2019 at 1.4mln bpd and 1.5mln bpd respectively. Said that the global oil market is tightening up. The Brent price range of USD 70-80bbl seen since April could be tested. OPEC crude output stands at a 9-month high of 32.63mln bpd in August.

The day ahead will be dominated by the ECB, BoE, CBT and US CPI but there are other data releases to highlight including the final August CPI revisions in Germany and France, Argentina CPI for August, and the latest weekly jobless claims and August monthly budget statement in the US. Worth flagging also is the IMF conference on sovereign debt including opening remarks from Lagarde, as well as scheduled speeches from the Fed’s Quarles (at 3pm BST) and Bostic (at 6pm BST). We’ve not mentioned the BoE but DB agrees with consensus that no changes to policy are likely. Officials may mention the recent softening in economic data and could  comment on ongoing Brexit negotiations, but it shouldn’t be market moving.

US Event Calendar

  • 8:30am: US CPI MoM, est. 0.3%, prior 0.2%; CPI Ex Food and Energy MoM, est. 0.2%, prior 0.2%
  • US CPI YoY, est. 2.8%, prior 2.9%; CPI Ex Food and Energy YoY, est. 2.4%, prior 2.4%
  • 8:30am: Real Avg Weekly Earnings YoY, prior 0.11%; Real Avg Hourly Earning YoY, prior -0.2%
  • 8:30am: Initial Jobless Claims, est. 210,000, prior 203,000; Continuing Claims, est. 1.71m, prior 1.71m
  • 9:45am: Bloomberg Consumer Comfort, prior 58
  • 2pm: Monthly Budget Statement, est. $187.0b deficit, prior $107.7b deficit

DB’s Jim Reid concludes the overnight wrap

There’s the potential for today to be the most exciting day of the week. Indeed, we’ve got the ECB, CBT and BoE meetings as well as a US CPI report all within the space of an hour and a half (from 12pm to 1.30pm for those wanting to get an upper hand on lunch orders).

Of these the ECB, CBT and US CPI are much more likely to be market moving than the BoE. Briefly previewing these, first up is the ECB where our economists’ expectation ( link ) is that we’ll get a confirmation that QE net purchases will be phased out in the final quarter of this year. As a reminder, the ECB included a caveat which gave it optionality of sorts depending on incoming data, but given that the inflation outlook hasn’t weakened since June then there’s little reason to think that there’s been a “major deviation” that could cause the ECB to change its tune. Meanwhile, relative to the most recent consensus expectations, our colleagues note that the June staff forecasts look in line to marginally too optimistic so there’s a moderate risk that the staff revise forecasts slightly lower (around a tenth lower for CPI and GDP). On this it’s worth noting the Bloomberg article doing the rounds yesterday which suggested we would see lower GDP forecasts from the ECB today. Also worth watching out for is President Draghi’s response to Italy. It’s hard to see him approaching any questions from reporters with anything but a straight bat but the market will no doubt be closely watching.

As for Turkey, well the market is expecting the CBT to hike the one-week repo rate to 325bps to 21% although the range among economists on Bloomberg is anywhere from no change to 725bps of hikes. So it could be an interesting meeting. Our economists in Turkey expect ( link ) the CBT hike to 22% while also returning back to full funding from the policy rate. They note that this would translate into 275bps of effective tightening as the marginal lending rate for local banks would move to 22% from 19.25% currently at the overnight facility. Despite rallying yesterday (+1.35%), the Lira is still down -40.19% YTD so clearly the market is crying out for some policy stability to help stem the rout. The question though is how much tightening is needed.

Elsewhere, the consensus for US CPI this afternoon is another +0.2% mom core print for August – the 35th month in a row with such a forecast – which should be enough to keep the annual reading at +2.4% yoy. Our US economists actually expect the latter to round down to +2.3%, however the three and six month annualized changes should firm to +2.45% and +2.12% respectively so it should continue to ensure that the Fed remain resolute in their tightening mode. Last Friday’s strong AHE print and Tuesday’s JOLTS data signalled that inflationary wage pressures should continue, so the inflation pulse does seem to still be on the up for the US right now.

Going into Super Thursday markets in Asia appear to be in a much more upbeat mood which seems to reflect the news that broke yesterday suggesting that US Treasury Secretary Mnuchin had reached out to China to propose a new round of trade talks. Economic Advisor to the White House Larry Kudlow has since confirmed this overnight. The Nikkei (+0.84%) and Hang Seng (+1.40%) are leading gains on the back of that while the Shanghai Comp (+0.14%) and Kospi (+0.18%), although off their highs, are also up. Futures are more or less flat in the US while bonds are more mixed but the overall scope of moves is fairly modest. Looking back to yesterday, equities spent much of day grappling between a tumbling tech sector, another sharp leg higher for oil prices and that story suggesting that the US will propose a new round of trade talks with China. After diving between gains and losses, by the close of play last night the S&P 500 finished +0.04% with energy stocks up +0.51% while the NASDAQ fell -0.23% and wiped out around half of Tuesday’s gain. Apple closed -1.25% (with the stock trading mostly flat after the new iPhone release) and the NYFANG index ended +0.05%. Credit markets continued their recent strength, with the  CDX IG index tightening 1bp to 57.5bps – its lowest level since March. CDS has outperformed cash notably of late.

The MSCI EM index traded up +0.12%, gaining for the only second session in the last eleven trading days. The EM currency index rallied +0.80% after the positive trade headlines regarding new US-China discussions. Meanwhile WTI Oil (+1.62%) turned in its second consecutive >1.5% session yesterday and Brent hit $80/bbl for the first time since May with rising concerns about supply including the impact of Hurricane Florence driving price action. Demand looks healthy too, with US data showing a drawdown in crude oil inventories of 5.3 million versus expectations for a 1.6 million barrel drawdown. Bonds largely ignored the oil and trade headlines though, with Treasuries finishing 1.3bps lower and yields in Europe down a similar amount. BTPs (+0.6bps) underperformed for the  second day, albeit modestly, following a later-denied Ansa news story about the 5SM Party asking for €10bn for its citizen income proposal or otherwise Finance Minister Tria’s resignation.

Ahead of today’s US CPI, yesterday’s headline PPI data for August initially looked like a slight inflation miss but at closer  inspection it was much more of a wash. Indeed the headline number came in at -0.1% mom (vs. +0.2% expected) largely due to the trade component, causing the annual reading to fall to +2.8% yoy from +3.3%. However the healthcare component was a solid +0.18% mom (implying a decent read-through to PCE) and we also saw the ex-food, energy and trade reading rising one-tenth to +2.9% yoy.

We also had speeches from two FOMC members yesterday, though neither signalled a substantive change in policy views. Fed Governor Brainard recommitted to the gradual pace of rate hikes, cited financial stability as a potential concern, and mentioned emerging markets, the yield curve, and the stilllow level of r-star as potential problems moving forward. St. Louis Fed President Bullard reiterated his dovish view that rates are already near neutral, or even already restrictive, given the slope of the yield curve and the level of market-based measures of inflation expectations. Brainard is nearer the centre of the committee and her speech probably better reflects the median FOMC view, but Bullard’s comments remind us that some issues will continue to be debated on the FOMC.

The day ahead will likely be dominated by the four events we highlighted further up (ECB, BoE, CBT and US CPI) but there are other data releases to highlight including the final August CPI revisions in Germany and France, Argentina CPI for August, and the latest weekly jobless claims and August monthly budget statement in the US. Worth flagging also is the IMF conference on sovereign debt including opening remarks from Lagarde, as well as scheduled speeches from the Fed’s Quarles (at 3pm BST) and Bostic (at 6pm BST). We’ve not mentioned the BoE but DB agrees with consensus that no changes to policy are likely. Officials may mention the recent softening in economic data and could  comment on ongoing Brexit negotiations, but it shouldn’t be market moving.

 

 

3. ASIAN AFFAIRS

i) THURSDAY MORNING/ WEDNESDAY NIGHT: Shanghai closed UP 30.47 POINTS OR 1.15%   /Hang Sang CLOSED UP 669.45 POINTS OR 2.54%/   / The Nikkei closed UP 216.71 POINTS OR 0.96%/Australia’s all ordinaires CLOSED DOWN 0.70%  /Chinese yuan (ONSHORE) closed DOWN  at 6.8668 AS POBC STOPS  ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER/Oil DOWN to 69.44 dollars per barrel for WTI and 79.17 for Brent. Stocks in Europe OPENED GREEN //.  ONSHORE YUAN CLOSED UP AT 6.8468 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8429: HUGE DEVALUATION/PAST SEVERAL DAYS STOPS// TRADE TALKS NOT DOING TOO GOOD   : /ONSHORE YUAN TRADING  WEAKER AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING  STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

3 a NORTH KOREA/USA

 

North Korea/South Korea/USA/China

3 b JAPAN AFFAIRS

 
END

3C CHINA

4.EUROPEAN AFFAIRS

UK

Bank of England keeps rates unchanged and this was widely expected

(courtesy zerohedge)

Bank of England Keeps Rates Unchanged In Widely Expected Decision

While far less exciting than today’s Turkish rate announcement which saw the central bank hike the 1 week repo rate by 625bps to 24%, the BOE decided to keep rates unchanged at 0.75% as expected in a unanimous 9-0 vote.

Bank of England

@bankofengland

MPC voted unanimously to maintain at 0.75%

In a relatively upbeat statement, the BOE said that economic activity had been better than expected, and raised its Q3 GDP estimate to 0.5% from the August estimate of 0.4% noting the very limited degree of slack remaining in the economy, and predicting that a small margin of excess demand was projected to emerge by late 2019 and build thereafter, feeding through into higher growth in domestic costs than has been seen over recent years.

As also expected, the BOE repeated its view that any future rate hikes “are likely to be at a gradual and limited” over the next few years as inflation to its 2% target. The central bank also discussed the global economy, noting that it “still appears to be growing at above-trend rates, although recent developments are likely to have increased downside risks around global growth to some degree. ”

In emerging market economies, indicators of growth have continued to soften and financial conditions have tightened further, in some cases markedly.  Recent announcements of further protectionist measures by the United States and China, if implemented, could have a somewhat more negative impact on global growth than was anticipated at the time of the August Report.

In the minutes accompanying the decision, the MPC said it saw more indications of uncertainty over Brexit withdrawal process than a month ago, especially financial markets.

The central bank also noted that ongoing tightening of monetary policy is likely appropriate if economy grows as expected, and that any rate rises are to be gradual and limited.

It noted that recent developments have increased downward risks to above trend global economic growth, especially for EMs.

The central bank highlighted recent protectionist measures by the US and China and said these could have a somewhat more negative effect on growth than expected in August, if implemented Sees Q3 growth of 0.5% QQ (prev. 0.4%)

The market is pricing in the next rate hike for May.

In response to the widely expected announcement, cable has done nothing and was virtually unchanged.

end
The euro and gold surge as Draghi forecasts significantly stronger core inflation
(courtesy zerohedge)

Euro Surges As Draghi Forecasts “Significantly Stronger Core Inflation”

While the ECB indeed trimmed its GDP outlook for 2018 and 2019 as previewed previously, cutting 2018 and 2019 GDP from 2.1% and 1.9% to 2.0% and 1.8%, respectively, and mirroring the recent reversal in the Citi Eurozone surprise index…

… the market ignored this and instead focused on Mario Draghi’s assessment that the expansion is “still solid” while noting that “uncertainty around the inflation outlook is receding.”

Commenting on inflation, Draghi said that while “measures of underlying inflation remain generally muted” he countered that “domestic cost pressures are strengthening, broadening” as “uncertainty around inflation outlook is receding” and expects “underlying inflation to pick up toward end of year, rise gradually in medium term.”

Subsequently, Draghi also said that the ECB projects “significantly stronger core inflation.”

The mood was boosted by Draghi’s comments on, saying that while “we have to wait and see” so far, all the major Italian ministers and the PM have said they will respect the EU’s budgetary requirements, and there has been no contagion out of Italy to Europe yet.

This, together with the latest miss in US inflation as CPI missed across the board one day after PPI posted its first contraction since January 2017 which slammed the dollar, turned out to be a “perfect storm” for EUR shorts, and forced a broad squeeze in the heavily shorted currency while dollar longs were forced to unwind positions.

As a result, the EURUSD jumped +0.5%, setting a session high of 1.1688 with the pair briefly rising above 100-DMA but stalling ahead of technical resistance at 1.1690.

end
UK/RUSSIA/SKRIPAL POISONING
The two suspects have been interviewed by RT and give a full account of their activities in England.  There is no way that these guys did the criminal act
(courtesy zerohedge)

Skripal Suspects Appear For First Time In Shocking Interview: We Are “Framed Tourists”

The same day the US announced it plans a second round of “very severe” sanctions on Russia over the use of a nerve agent in connection to the West’s allegations surrounding the Skripal poisoning, the alleged perpetrators of the poison attack have appeared on RT News for an exclusive interview with RT’s Editor-in-Chief Margarita Simonyan.

Suffice it to say the whole strange Skripal saga just got a lot more bizarre. The pair told Simonyan in the televised interview that they had nothing to do with it, but were very excited to visit the famous Salisbury cathedral as mere sightseers and were in the Salisbury town briefly on two consecutive days, but that they are not GRU agents or Russian spies.

“Our friends had been suggesting for a long time that we visit this wonderful town,” they said, and explained that after the short visit, their“whole lives were turned upside down” as they suddenly became “framed tourists” caught up in the Skripal cause after being falsely accused by UK authorities.

The pair sat stone-faced throughout the interview and delivered brief, concise answers to RT’s questions, while consistently claiming to have been visiting Britain as tourists, but while also acknowledging it was indeed them that appeared in CCTV footage published by the UK authorities.

“Salisbury? A wonderful town?” RT’s Margarita Simonyan asked. “Yes,” Petrov answered tersely. “It is a tourist town,” Boshirov offered. “There’s a famous cathedral there… It is famous not just in Europe, but in the whole world. It’s famous for its 123-metre spire, it’s famous for its clock, the first one [of its kind] ever created in the world, which is still working.”

Upon the start of the interview wherein the two confirm their true identities as Alexander Petrov and Ruslan Boshirov to RT’s Simonyan, the interview proceeds:

SIMONYAN: The guys we all saw in those videos from London and Salisbury, wearing those jackets and trainers, it’s you?

PETROV: Yes, it’s us.

SIMONYAN: What were you doing there?

PETROV: Our friends have been suggesting for quite a long time that we visit this wonderful city.

SIMONYAN: Salisbury? A wonderful city?

PETROV:  Yes.

SIMONYAN: What makes it so wonderful?

BOSHIROV:  It’s a tourist city. They have a famous cathedral there, Salisbury Cathedral. It’s famous throughout Europe and, in fact, throughout the world, I think. It’s famous for its 123-meter spire. It’s famous for its clock. It’s one of the oldest working clocks in the world.

Petrov then explains that the pair planned to visit famous tourist sites in London and in and around Salisbury, but parts of their trip were cut short because of heavy snowfall and inclement weather.

RT

@RT_com

Framed tourists?

FULL INTERVIEW: 5GMT on http://RT.comhttps://on.rt.com/9e8t

The pair say they only spent three days total in England, due their decision to cut it short, but were in Salisbury for some of that time, on two consecutive days:

SIMONYAN: So, you travelled to Salisbury to see the clock?

PETROV: No, initially we planned to go to London and have some fun there. This time, it wasn’t a business trip. Our plan was to spend some time in London and then to visit Salisbury. Of course, we wanted to do it all in one day. But when we got there, our plane couldn’t land on its first approach. That’s because of all the havoc they had with transport in the UK on March 2 and 3. There was heavy snowfall, nearly all the cities were paralyzed. We were unable to go anywhere.

BOSHIROV: It was in all the news. Railroads didn’t work on March 2 and 3. Motorways were closed. Police cars and ambulances blocked off highways. There was no traffic at all – no trains, nothing. Why is it that nobody talks about any of this?

SIMONYAN: Can you give a time line? Minute-by-minute, or at least hour-by-hour, or as much as you can remember. You arrived in the UK – like you said, to have some fun and to see the cathedral, to see some clock in Salisbury. Can you tell us what you did in the UK? You spent two days there, right?

PETROV: Actually, three.

SIMONYAN: OK, three. What did you do for those three days?

PETROV: We arrived on March 2. We went to the train station to check the schedule, to see where we could go.

BOSHIROV: The initial plan was to go there for a day. Just take a look and return the same day.

PETROV: To Salisbury, that is. One day in Salisbury is enough. There’s not much you can do there.

BOSHIROV: It’s a regular city. A regular tourist city.

SIMONYAN: OK, I get that. That was your plan. But what did you actually do? You arrived. There was heavy snowfall. No trains, nothing. So, what did you do?

PETROV: No, we arrived in Salisbury on March 3. We wanted to walk around the city but since the whole city was covered with snow, we spent only 30 minutes there. We were all wet.

In comments that will likely be able to be easily proven or disproven, he followed with: “There are no pictures. The media, television – nobody talks about the fact that the transport system was paralyzed that day. It was impossible to get anywhere because of the snow. We were drenched up to our knees.

In Salisbury, Petrov continued, the two intended “to see Stonehenge, Old Sarum, and the Cathedral of the Blessed Virgin Mary. But it didn’t work out because of the slush.” But they blame the harsh conditions for quickly canceling their plans and “transport collapse”, and they returned the train station after their initial arrival in the town via train from London.

SIMONYAN: All right. You went for a walk for 30 minutes, you got wet. What next?

PETROV: We travelled there to see Stonehenge, Old Sarum, and the Cathedral of the Blessed Virgin Mary. But it didn’t work out because of the slush. The whole city was covered with slush. We got wet, so we went back to the train station and took the first train to go back. We spent about 40 minutes in a coffee shop at the train station.

BOSHIROV: Drinking coffee. A hot drink because we were drenched.

PETROV: Maybe a little over an hour. That’s because of large intervals between trains. I think this was because of the snowfall. We went back to London and continued with our journey.

BOSHIROV: We walked around London…

SIMONYAN: So, you only spent an hour in Salisbury?

PETROV: On March 3? Yes. That’s because it was impossible to get anywhere.

SIMONYAN: What about the next day?

PETROV: On March 4, we went back there, because the snow melted in London, it was warm.

BOSHIROV: It was sunny.

PETROV: And we thought – we really wanted to see Old Sarum and the cathedral. So we decided to give it another try on March 4.

SIMONYAN: Another try to do what?

PETROV: To go sightseeing.

BOSHIROV: To see this famous cathedral. To visit Old Sarum.

SIMONYAN: So, did you see it?

BOSHIROV: Yes, we did.

PETROV: On March 4, we did. But again, by lunchtime, there was heavy sleet.

BOSHIROV: For some reason, nobody talks about this.

PETROV: So we left early.

In total, the pair say they spent only an hour on their first day in Salisbury “because it was impossible to get anywhere,” before taking a train back to London. The men say this all happened on March 3rd, the day before the alleged poisoning of Sergei Skripal, a former Russian military officer and double agent for the UK’s intelligence services, and his daughter Yulia Skripal, in the same town.

However, they say they returned to sightsee in Salisbury the next day, March 4, on the day of the Skripal attack.

And continuing, RT’s Simonyan asked them to divulge proof that they took photographs of the sites. The pair agreed they would provide their tourist photographs to the media as proof of their story.

SIMONYAN: Is it beautiful?

BOSHIROV: The cathedral is very beautiful. There are lots of tourists, lots of Russian tourists, lots of Russian-speaking tourists.

PETROV: By the way, they should have a lot of pictures from the cathedral.

SIMONYAN: Your pictures, you mean?

PETROV: They should show them.

SIMONYAN: I assume you took some pictures while at the cathedral?

PETROV: Of course.

BOSHIROV: Sure, we did. We went to a park, we had some coffee. We went to a coffee shop. We walked around, enjoying those beautiful English Gothic buildings.

PETROV: For some reason, they don’t show this. They only show how we went to the train station.

SIMONYAN: If you give us your pictures, we can show them. So, while you were in Salisbury, did you go anywhere near the Skripals home?

PETROV: Maybe. We don’t know.

BOSHIROV: What about you? Do you know where their house is?

SIMONYAN: I don’t. Do you?

BOSHIROV: We don’t either.

PETROV: I wish somebody told us where it was.

And Boshirov added after the series of questions concerning the Skripal residence: “Maybe we passed it, or maybe we didn’t. I’d never heard about them before this nightmare started. I’d never heard this name before. I didn’t know anything about them.”

On the issue of the alleged “perfume bottle” the UK police claim to have identified as used for delivery of the nerve agent, the two accused men said the prospect is “absurd”.

SIMONYAN: When you arrived in the UK, when you were in London or in Salisbury, throughout your whole trip, did you have any Novichok or some other poisonous agent or dangerous substance with you?

BOSHIROV: No.

PETROV: It’s absurd.

SIMONYAN: Did you have that bottle of Nina Ricci perfume which the UK presents as evidence of your alleged crime?

BOSHIROV: Don’t you think that it’s kind of stupid for two straight men to be carrying perfume for ladies? When you go through customs, they check all your belongings. So, if we had anything suspicious, they would definitely have questions. Why would a man have women’s perfume in his bag?

PETROV: Even an ordinary person would have questions. Why would a man need perfume for women?

And on the issue of the widely circulated and somewhat mysterious (considering the same exact time stamp for each) security camera photographs at Gatwick airport…

SIMONYAN: Right. Here’s the photo that’s got the whole world puzzled. Gatwick. You’re going through the gate at the same time, even at the same second. How do you explain that?

BOSHIROV: I think it’s for them to explain.

PETROV: How can we explain it?

CCTV images of Petrov and Boshirov at Gatwick airport on 2 March 2018.

BOSHIROV: We always go through the gate together. Through the same gate, with the same customs officer. One after another. We walked through that corridor together. We’re always together. As to how it happened – us walking there at the same second and then separately – I think it’s a question that should be put to them.

PETROV: Yeah, on the point of us always going through it together – my English is a bit better, so if any problem crops up, I’m there to help Ruslan out.

SIMONYAN: So you went through together? You didn’t take different corridors?

PETROV: No, we never go through separately.

BOSHIROV: No, never.

SIMONYAN: So what about these photos then? You say it never happened? Or were they doctored?

BOSHIROV: Well, I don’t really know…

PETROV: It’d be a good thing if we could actually remember it…

BOSHIROV: … how they do these things over there. When you arrive at an airport, or leave one, when you go somewhere or other, you never think about the cameras… There’s nothing interesting about them. How they film, or what, or where – I’m not interested in any of that and so I never took any notice. Given that it was them who published these photos with this time on them and all, I think the best thing to do would be to ask them.

Near the end of the interview, the two men explicitly denied working for GRU and demanded a formal apology from the UK government over the whole gambit of accusations.

But when pressed further about how they know each other and their past, said they preferred not give too many public details about their lives, but explained they worked as part of a fitness nutrition supplements business.

end

 

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

TURKEY/ EARLY THIS MORNING:

TURKISH lira crashes to 6.55 after Erdogan attacks his central bank hours before a rate decision. Must be fun in his household as the chief central banker is his son in law

(courtesy zerohedge)

Turkish Lira Crashes After Erdogan Attacks Central

Bank Hours Before Rate Decision

After a few weeks of relative stability in the Turkish Lira – the currency many say started the current EM turmoil – moments ago the TRY collapsed after Erdogan decided to slam the country’s “independent” central bank.

Just hours before a widely expected, and much needed to restore investor confidence, rate hike by the Turkish central bank, President Recep Erdogan decided to attack the central bank out of the blue for “continuously missing inflation targets” just two hours before the bank announces its interest rates decision.

“I have never seen the central bank meeting its year-end inflation forecast,” Erdogan said in speech at Confederation of Turkish Tradesmen and Craftsmen meeting in Ankara.

Stating that inflation is the result of wrong steps by central bank, Erdogan warned the central bank saying that Turkey “should cut this high interest rate“, even as economists and traders expect another rate hike of as much as 400 bps to be announced shortly. While bashing the bank, Erdogan repeated his bizarre “theory” on the relationship between interest rates and inflation, saying that rate hikes only lead to faster price gains.

Erdogan claimed that “interest rate is the reason, inflation is the result” and said that “if you are saying the opposite, you don’t know this business.”

While conventional economics says that higher rates slow demand and lower inflation, Erdogan has long preached the opposite even as the market repeatedly told him he is wrong, sending the lira crashing in recent months and making it one of the worst performing currencies of 2018, plunging over 41% YTD.

Erdogan also said that Turkey “will suspend some tendered projects” that haven’t started yet, and explained that his “sensitivity on interest rates remains the same” even as he clarified that the central bank is independent and will take its own decisions, even as he made it painfully clear that a major rate hike will be frowned upon.

“This is not a crisis, it’s a manipulation” he concluded.

The Turkish central bank is set to announce its benchmark one-week policy rate at 2 pm in Istanbul. The median estimate in a Bloomberg survey forecast the rate would be increased to 21 percent from 17.75%.

And following a few weeks of calm, the TRY promptly crashed, tumbling as much as 3% on Erdogan’s comments, which will now make any announcement by the central bank moot as traders panic what Erdogan may do even if the CBRT does hike rates as expected.

One potential silver lining: as Bloomberg’s Mark Cudmore points out, “by the sounds of things, there’s a possibility for some form of capital controls will be implemented, potentially killing speculative lira shorts.” And while that might save the lira from collapse in the short-run, “it will hurt the economy for a long-time to come.”

end

Our Turkish Central banker, the son in law of Erdogan, is certainly going to have lots of scorn in his household as he raised interest rates rise by a massive 625 basis points to 24%.  That will certainly kill off most of their businesses inside Turkey

(courtesy zerohedge)

Lira Soars After Massive Rate Hike Of 625bps To 24%

President Erdogan will be very unhappy.

Hours after President Erodgan slammed the central bank for high rates and runaway inflation, the central bank defied the president and surprised markets by hiking far more than the 325bps expected, raising the one week repo rate by 625bps to 24% from 17.75%, some 3% above the expected 21% and sending the Lira surging as much as 5% in the process.

To justify its decision, the central bank said that the decelaration in domestic demand has became more visible, and said that “despite the milder impact of demand conditions on inflation, elevated levels of inflation and inflation expectations continue to pose risks on the pricing behavior.”

Following today’s hike, this is what interest rates look like around the world:

  • Argentina: 60%
  • Turkey: 24%
  • Venezuela: 20.5%
  • Iran: 18%
  • Egypt: 16.7%
  • Nigeria: 14%
  • Mexico: 7.75%
  • Pakistan: 7.5%
  • Russia: 7.25%
  • Brazil: 6.5%
  • India: 6.5%
  • Indonesia: 5.5%
  • China: 4.35%
  • Saudi: 2.5%
  • US: 2%
  • Australia: 1.5%
  • Canada: 1.5%
  • UK: 0.75%
  • Euro area: 0%
  • Japan: -0.1%

Here is the CBRT press release:

The Monetary Policy Committee (the Committee) has decided to increase the policy rate (one week repo auction rate) from 17.75 percent to 24 percent.

Recently released data indicate a more significant rebalancing trend in the economic activity. External demand maintains its strength, while slowdown in domestic demand accelerates.

Recent developments regarding the inflation outlook point to significant risks to price stability. Price increases have shown a generalized pattern across subsectors, reflecting the movements in exchange rates. Deterioration in the pricing behavior continues to pose upside risks on the inflation outlook, despite weaker domestic demand conditions. Accordingly, the Committee has decided to implement a strong monetary tightening to support price stability.

The Central Bank will continue to use all available instruments in pursuit of the price stability objective. Tight stance in monetary policy will be maintained decisively until inflation outlook displays a significant improvement. Inflation expectations, pricing behavior, lagged impact of recent monetary policy decisions, contribution of fiscal policy to rebalancing process, and other factors affecting inflation will be closely monitored and, if needed, further monetary tightening will be delivered.

It should be emphasized that any new data or information may lead the Committee to revise its stance.

The summary of the Monetary Policy Committee Meeting will be released within five working days.

In a separate release on lira liquidity management, the CBRT said that Central Bank funding, which is currently provided through overnight lending, “will be provided via one-week repo auctions starting from September 14, 2018.” adding that the one-week transition period has been envisaged for providing all of the funding via one-week auctions.

In kneejerk response to the far bigger than expected rate hike, the Turkish lira surged as much as 5%, dropping from 6.40 vs the dollar to as high as 6.00 before reversing some gains.

end

We have been highlighting to you the ambitions of Erdogan over the past year.  Several authors have stated that Turkey is deficient in energy and the Turkish leader will encroach on other sovereign territories to secure their much needed oil and gas.  This is why they covet the Cyprus big gas field discovered by the Israelis over 4-5 years ago.  The Israelis will protect the Cypriots.

(courtesy zerohedge)

 

end

 

We have been highlighting to you the ambitions of Erdogan over the past year.  Several authors have stated that Turkey is deficient in energy and the Turkish leader will encroach on other sovereign territories to secure their much needed oil and gas.  This is why they covet the Cyprus big gas field discovered by the Israelis over 4-5 years ago.  The Israelis will protect the Cypriots.

(courtesy Ghosal/Gatestone Institute.)

Turkey’s Latest Power Grab: A Naval Base In Cyprus?

Authored by Debalina Ghoshal via The Gatestone Institute,

  • The possibility of a Turkish naval base on Cyprus does not bode well for the chances of a Cyprus reunification deal, particularly after the breakdown of the July 2017 peace talks, which were suspended when “Turkey had refused to relinquish its intervention rights on Cyprus or the presence of troops on the island.”
  • Turkey has 30,000 soldiers stationed on Cyprus, the northern part of which it has illegally occupied since 1974.
  • “If Greek-Turkish tensions escalate,the possibility of another ill-timed military provocation could escalate with them… Moreover, such a conflict might open up an even greater opportunity for Russian interference.” – Lawrence A. Franklin.

Turkey’s Naval Forces Command has “submitted a proposal to the Ministry of Foreign Affairs stating that Turkey should establish a naval base in the Turkish Republic of Northern Cyprus,” according to Turkey’s strongly pro-Erdogan daily, Yeni Safak, which recently endorsed the proposal for the base in an article entitled, “Why Turkey should establish a naval base in Northern Cyprus.”

“The base will enable the protection of Northern Cyprus’ sovereignty as well as facilitate and fortify Turkey’s rights and interests in the Eastern Mediterranean, preventing the occupation of sea energy fields, and strengthening Turkey’s hand in the Cyprus peace process talks.”

Having a naval base in northern Cyprus would also strengthen the self-proclaimed “Turkish Republic of Northern Cyprus,” which is recognized only by Turkey. Cyprus is strategically important: a naval base there would give Turkey easier access to the Eastern Mediterranean’s international trade routes and greater control over the vast undersea energy resources around Cyprus. In the past, Turkey has blocked foreign vessels from drilling for these resources; in June, Turkey began its own exploration of the island’s waters for gas and oil.

Turkey’s Naval Forces Command has “submitted a proposal to the Ministry of Foreign Affairs stating that Turkey should establish a naval base in the Turkish Republic of Northern Cyprus.” Pictured: The Turkish Navy frigate TCG Oruçreis. (Image source: CC-BY-SA-3.0/Brian Burnell via Wikimedia Commons)

This is not the first time that Turkey has set its sights on the area’s resources. In 2014, Ankara dispatched surveillance vessels and warships to Cyprus’s Exclusive Economic Zone (EEZ) to search for hydrocarbons. This incident took place just before the leaders of Greece, Cyprus and Egypt deepened their an energy-cooperation, “freezing Turkey out.” As soon as the accord was signed, Cypriot President Nicos Anastasiades blasted “Turkey’s provocative actions,” saying that they “do not just compromise the peace talks [between Greek and Turkish Cypriots]… [but] also affect security in the eastern Mediterranean region.”

At the time, UN-brokered reunification negotiations, which had been renewed after a long hiatus, ended unsuccessfully yet again, as a result of Turkey’s search for hydrocarbons in the EEZ. According to a November 2014 report in the Guardian:

“Turkey’s decision to dispatch a research vessel into disputed waters last month not only resulted in talks being broken off but has exacerbated the row over drilling rights.”

The possibility of a Turkish naval base does not bode well for the chances of a Cyprus reunification deal, particularly after the breakdown of the July 2017 peace talks between Turkish-Cypriot leader Mustafa Akinci and Cypriot President Nicos Anastasiades. The talks were suspended when “Turkey had refused to relinquish its intervention rights on Cyprus or the presence of troops on the island.” Turkey has 30,000 soldiers stationed on Cyprus, the northern part of which it has illegally occupied since 1974.

Another factor that may be contributing to the Turkish Navy’s desire for a base in Cyprus is Israel. Aside from Ankara’s extremely rocky relations with Jerusalem, Israel and Cyprus have been working to forge an agreement to join their electricity grids and construct a pipeline to link their gas fields to mainland Europe. Although they are in a dispute over development rights of one of these gas fields, Aphrodite, they are invested in reaching a solution that will not damage their increasingly friendly relations.

Erdogan’s considerations should concern NATO, of which Turkey, surprisingly, is still a member, and the rest of the West. As Lawrence A. Franklin recently wrote for Gatestone:

“If Greek-Turkish tensions escalate, the possibility of another ill-timed military provocation could escalate with them. The ability of NATO to respond to other conflicts in the area could be affected, as well as NATO air and naval assets based in both countries. Moreover, such a conflict might open up an even greater opportunity for Russian interference.”

end
Turkey’s new sovereign Wealth Fund Chairman: none other than Erdogan
(courtesy zerohedge)

Meet Turkey’s New Sovereign Wealth Fund Chairman,

Who Has “Now Taken Public Companies Prisoners”

What does a man who already controls pretty much everything in his country  from politics to the judiciary to defense  give to himself? How about direct takeover of his country’s sovereign wealth fund?

President Recep Tayyip Erdogan has appointed himself chairman of Turkey’s sovereign wealth fund after recent promises to exert greater influence over the economy. He’s nixed the old guard management and hand-picked their replacements, in a move his political rival, presidential candidate who lost the June election, Muharrem Ince, has aptly described as taking “public companies prisoners”.

And not to be one to break medieval sultanate tradition, he’s further named his son-in-law and Finance Minister Berat Albayrak as deputy chairman.

Calling this latest move a “crazy example” of the country’s poor management under Erdogan, Ince wrote on Twitter immediately after the news was made public: “The man who has captured the state . . . has now taken public companies prisoners”.

He continued, “This desire to control everything will in the end give way to controlling nothing. And the country pays the bill.”

Beginning in September of 2017, Erdogan indicated he would seek the wealth funds’s reorganization after dismissing its chairman over its failure to meet targets.

Bloomberg reports the bombshell, but not entirely shocking latest news in Erdogan’s long struggle to control everything under the sun:

Zafer Sonmez, head of Turkey and Africa for Malaysia’s government investment vehicle Khazanah Nasional Bhd, was named general manager. Treasury and Finance Minister Berat Albayrak, Erdogan’s son-in-law, will also sit on the board, according to a decree published in the Official Gazette.

The overhaul comes two years after the government formed the fund to capitalize on $200 billion of state assets and put a lid on market turmoil in the wake of a failed coup attempt. But the organization’s goals and strategy were never clearly defined and internal strife led to the firing of its first chief executive officer after Erdogan publicly expressed his disappointment.

Bloomberg lists the wealth fund as including stakes in Turkish AirlinesTurk Telekom, state lenders TC Ziraat Bankasi AS and Turkiye Halk Bankasi AS, and further the stock exchange, Turkey’s national postal service, state oil and pipeline companies, and the national lottery and railway.

Why keep up the charade of even signing paperwork anymore? 

Funny enough it doesn’t appear Erdogan is comfortable with even his own adviser, Yigit Bulut, overseeing the fund as confirmed in FT’s quip“The changes to the sovereign wealth fund sidelined one of the president’s own advisers, Yigit Bulut, who is renowned for once claiming that Mr Erdogan’s enemies were trying to kill him through telekinesis.”

Among the newly Erdogan-hand picked board members, per Bloomberg, are Rifat Hisarciklioglu, head of the Turkish chambers of commerce; Huseyin Aydin, head of the banking association and Ziraat CEO; Arda Ermut, the head of Turkey’s investment support and promotion agency; Erisah Arican, a professor and member of the Borsa Istanbul board; and businessman Fuat Tosyali.

Crucially, FT reports the timing of the move as coming just before a major interest rate announcement:

The latest change came ahead of a critical interest rate announcement on Thursday, a decision seen as a pivotal test of the independence of Turkey’s central bank.

Murat Cetinkaya, the central bank governor, has caused dismay among international investors by resisting calls to raise rates even as inflation has soared to 18 per cent.

Well so much for even a facade of “independence”…

Meanwhile the lira has lost about 40 percent of its value this year after Ankara’s summer long growing spat with Washington and as global institutional concerns over management of the economy have deepened.

Apparently Erdogan’s solution is as simple as… “don’t worry the Sultan is in… I got this”.

end
Iran/Turkey
Interesting move by wealthy Iranians:  they are buying property in Turkey mainly in Istanbul,  Both of these countries are witnessing their currency collapse.
(courtesy zerohedge)

Iranian Money Exits For Turkey’s Troubled Economy As Immigrants Buy Up Turkish Property

A new extensive report in Middle East Eye charts the unsurprising trend of Iranians of means pulling money out of Iran to invest and lay down roots abroad. The only surprise, however, is that they appear to be fleeing one smashed economy for another troubled one in the region: Turkey has experienced a surge in recent Iranian real estate purchases in the country, according to the report.

One Iranian economic migrant interviewed by Middle East Eye summarizes the trend: “To survive and to have a better life, we chose to migrate to Turkey,” said Ali, an Iranian living in Ankara. “Iranian currency has lost its value, even against Turkey’s,” he said, but the Turkish lira still remains more affordable for Iranians than the euro or the dollar.

Image via Hurriyet Daily, Istanbul

“That’s why Iranian’s first step would always be Turkey, even when they actually want to migrate to Europe or America,” Ali said. For other Iranians who had ever had an inkling of relocating abroad, those plans have now been dramatically hastened, as people’s entire savings have turned to nothing seemingly overnight.

“Over one night, I lost half of it after the US president issued an ultimatum and then killed the nuclear deal,” another Iranian told Middle East Eye while filing immigration paperwork at an Istanbul office.

Last week the rial for the first time since President Trump pulled the US from the 2015 Iran nuclear deal began trading at over 150,000 rials to $1USD in the currency exchange shops of Tehran, which marks a dramatic plummet of140 percent since the since the May White House decision to end its terms of the JCPOA agreement and reimpose new rounds of crippling sanctions.

And in the past weeks international journalists have witnessed residents in Tehran and other cities frantically lining up outside money changing offices attempting to get dollars, which the shops are only allowed to issue if citizens can present an airline ticket for travel abroad. Things like diapers and many basic staples which rely on imported raw material to make have largely disappeared from store shelves.

Since last week money-change offices in the country began shuttering their shops once the rial began hitting upward of 150,000 rials to the dollar.

Tehran has been loathe to say it publicly, but some immigration officials in the country have acknowledged Iranians of any available means are exiting the country in droves, though official statistics have yet to be released, according to Middle East Eye.

And many are headed to Turkey, as a bump in Turkish real estate seems to indicate.

The Middle East Eye report begins by explaining Turkey’s own economic woes in its deepening spat with Washington which began in earnest over the summer:

The value of the Turkish lira has plummeted by more than 40 percent since the start of the year amid concern over the country’s monetary policy and as a diplomatic row between Ankara and Washington has intensified.

But this hasn’t put off Iranians. According to the Turkish Statistical Institute, TUIK, the number of properties bought by Iranians in Turkey jumped in the first six months of the year to 944 compared to 792 in all of 2017.

Turkey has remained open to trade with Iran and has continued to purchase Iranian oil in defiance of Washington demands. Simultaneously amidst increasingly closer ties in the face of a common enemy other Turkish institutions have remained open to Iranians, including readily available loans from Turkish banks and a place to store their assets while Iran attempts to weather the storm.

Since the US pullout of the Iran nuclear deal, Iranians “have purchased around 1,000 homes and apartments in Turkey” according to Reza Kami, chairman of the Iran-Turkey Chamber of Commerce.

He explained of the surge, “Besides easy regulations and no need to get visas, people’s predictions about their assets losing their value have played a key role in their decisions.” Likely, this is only the beginning of a trend which is sure to add to the crush of Iran’s economic collapse.

END

Yemen/Saudi Arabia/USA/Iran

This is nuts: another coalition strike on a civilian Yemen bus full of children

(courtesy zerohedge)

 

Another Coalition Strike On Yemen Civilian Bus Occurs The Same Day US Affirms It Stands By Saudis

Just as the U.S. in typical fashion continues lecturing countries like Syria, Russia, and Iran over severe human rights violations, including allegations of everything from launching barrel bomb strikes on civilian areas in Idlib to chemical weapons attacks to sensational spy poisoning ops in the U.K., the Saudi-US coalition in Yemen has attacked another bus full of children and civilians in Yemen.

On Wednesday multiple Yemeni journalists reporting from on the ground confirmed a new airstrike resulting in mass civilian casualties, this time a Saudi-US coalition strike scored a direct hit on a bus station in beseiged Hodeidah City.

The strike occurred the same day Secretary of State Mike Pompeo and Secretary of Defense James Mattis announced they’ve certified the legality of US assistance to the coalition in Yemen before Congress.

Aftermath of the reported Wednesday airstrike in Hodeidah, via Hussain Albukhaiti

And this further comes, as NPR reports, after a long litany of instances of the coalition “causing disproportionate civilian deaths in the Yemen conflict because of airstrikes that have hit markets, weddings and even a bus carrying children from summer camp.” The Red Cross identified 40 children dead from that first major bus attack in Yemen’s north on August 9th.

Sanaa-based journalist Ahmad Algohbary reports of the new Wednesday attack:

Civilians were Killed & injured by Saudi led coalition airstrikes on bus station in Hodeidah City, Yemen. The warplanes are preventing the paramedics from getting into the attack scene.

Mainstream media has been slow to pick up the new report, however the graphic video of the aftermath of the horrific airstrike spread quickly on social media, and was quickly picked up by various journalists (warning: graphic content).

Ahmad Algohbary

@AhmadAlgohbary

First video shows the aftermath of led coalition airstrikes on bus station in City. .
20 were killed and 25 injured including children.
(Warning graphic content).

The video shows what appears to be a burning bus or large vehicle in the aftermath of an alleged airstrike, with casualties lying on the ground, some of them lifeless and beginning to be evacuated by first responders.

Early unconfirmed reports counted upwards of 15 men, women, and children among the dead, with many more wounded.

Beirut-based Al Masdar News reports,citing a local human rights group:

According to their report, at least 15 civilians were killed in the Kilo area of the Hodeidah Governorate after the Saudi Coalition heavily bombarded this part of the province.

This latest bombing the Saudi Coalition comes as the Gulf-backed forces resume their large-scale offensive inside the Hodeidah Governorate.

Also on Wednesday Secretary of Defense James Mattis and Secretary of State Mike Pompeo certified the legality of US assistance to the coalition in Yemen.

Mattis, subsequent to Pompeo’s announcement of Congressional approval, published a statement reaffirming the United States’ commitment to partnering with the Saudis and UAE in their war on Yemen’s Houthi rebels, seen by Washington as Iran’s proxy.

Secretary Mattis’ statement begins, “I endorse and fully support Secretary Pompeo’s certification to the Congress that the governments of Saudi Arabia and United Arab Emirates are making every effort to reduce the risk of civilian casualties and collateral damage to civilian infrastructure resulting from their military operations to end the civil war in Yemen”.

A handful of Congressional leaders have sought to shut down US military action in Yemen.

Rep. Ro Khanna

@RepRoKhanna

Pompeo’s ‘certification’ is a farce. The Saudis deliberately bombed a bus full of children. There is only one moral answer, and that is to end our support for their intervention in Yemen.

If this executive will not do it, then Congress must pass a War Powers Resolution.

John Hudson

@John_Hudson

A month after a Saudi-led airstrike bombed a bus with children in it, Secretary Pompeo certifies today that Riyadh and UAE are “undertaking demonstrable actions to reduce the risk of harm to civilians”

View image on Twitter
View image on Twitter

Pompeo’s certification allows the Pentagon to continue fueling coalition jets, and other areas of partnership such as intelligence sharing.

The statements also come as the United Nations has declared the Yemen war the worst humanitarian crisis in the world.

end

Russia/USA

The USA will introduce more severe sanctions on Russia over the Skripal case.  This time it will be aimed at the venerable banks

(courtesy zerohedge)

 

US To Impose “Very Severe” Sanctions On Russia Over Skripal Case

In the latest salvo meant to convince Mueller that Trump is not a pawn of the Kremlin, a State Dept official said on Thursday that the US plans a second round of “very severe” sanctions on Russia over use of nerve agent. The stated reason: Russia has not allowed on-site chemical weapons inspections, nor has it provided reassurance that it won’t use nerve agents against its own people, says Manisha Singh, Asst. Sec. for bureau of economic and business affairs

“We are looking at this November deadline” under the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991, Singh said, adding that “we plan to impose a very severe second round of sanctions.”

The sanctions will kick in some time in November, presumably just after the November midterms, if Moscow does not take steps in the wake of the poisoning of former Russian spy Sergei Skripal in the United Kingdom, Assistant Secretary of State Manisha Singh said on Thursday.

“We have indicated to them that they can evade, they can make themselves not subject to these sanctions if they allow the onsite inspections, if they give us a verifiable assurance that they will not use these nerve agents against their own people again,” Singh said. “They have not done so so far, so to that extent, we are looking at this November deadline as absolutely, we plan to impose a very severe second round of sanctions under the CBW [Biological Weapons and Warfare Elimination Act].”

While US sanctions on Russia are hardly new, what is surprising this time is that the new round will include not only defense procurement and aid, but also target the country’s increasingly unstable banking sector. Quote Sing: “It’s going to include banking sanctions, prohibition on procurement of defense articles, aid money — it’s a laundry list of items that will penalize the Russian government.”

In kneejerk response, the ruble slumped, erasing most intraday gains resulting from the slumping dollar, although it has since recouped some of the losses.

In early August, the United States announced a new round of sanctions against Russia over its alleged involvement in the poisoning of former Russian spy Sergei Skripal and his daughter Yulia in UK’s Salisbury in March.

The first wave of restrictions took effect on August 22, while the second package would depend on Moscow’s future policies.

END
Good reason to knock gold down today;  USA destroyer enters the Mediterranean as Syrian tensions escalate.  Also a uSA carrier is on standby
(courtesy zerohedge)

US Destroyer Enters Mediterranean As Syria Tensions Build; Carrier On Standby

An American battleship, the USS Bulkeley destroyer, has reportedly entered the Mediterranean and is headed for Syria, equipped with over 50 Tomahawk missiles. This deployment comes after previous reports of the attack submarine USS Newport News (SSN-750) arriving in the Mediterranean, and after the arrival Tuesday of A U.S. Marine Corps small attack carrier full of F-35B stealth jets, the USS Essex, in the Middle East region as detailed by the military website, Task and Purpose.

The Russian news agency Interfax now reports that American forces in the region possess up to 200 Tomahawk cruise missiles available to strike targets in Syria if ordered to do so.

The Wasp-class amphibious assault ship USS Essex (LHD 2) on Sept. 4, 2018, via US NavyAnd the USS Essex, part of the 13th Marine Expeditionary Unit (MEU), has rapid deployment forces of Marine units designed for immediate amphibious landing in coastal areas, along with a advanced stealth fighter aircraft.

Gerald Olin, commander of Amphibious Squadron of which the Essex is part, has defined the deployment’s mission as follows: “The embarked Marines of 13th MEU allow us the flexibility to rapidly respond to crises and set conditions that promote security in the region.”

The build-up in and near the Mediterranean comes amidst a massive Russian navy presence along Syria’s coast and after two weeks of threats from US officials that America will react “swiftly and appropriately” should Assad launch a chemical weapons attack.

Though Russian bombing over Idlib began days ago, it appears a full Syrian Army and Russian assault has been delayed partly over the objections of Turkey.

Guided missile destroyer USS Bulkeley, via US NavyAccording to Task and Purpose the agile Essex small carrier is designed for quick military action and response:

Until recently, the U.S. had no capital ships and just one or two destroyers in the Mediterranean, but the USS Essex, a small, flat-deck aircraft carrier used to launch U.S. Marine Corps F-35B stealth jets that can take off almost vertically, just arrived off the horn of AfricaUSNI News reports.

Though the Essex remains on the opposite side of the Suez Canal from Russia’s ships in the Mediterranean, it’s a quick-moving ship. Additionally, the F-35Bs can fly about 550 miles out from the ship in stealth configurations that make them hard to detect for enemy defenses.

Last week Russia conducted major military drills along Syria’s coast as a show of force. On Saturday footage released by Russia’s Defense Ministry showed marine special forces equipped with the latest Russian gear landing on the shores of the Syrian Latakia province.

As part of the staged invasion, the Russian Marines used helicopters, fast attack craft and armored vehicles while landing from major amphibious ships under cover of dozens of Russian combat aircraft.

Meanwhile, Pentagon officials have said that the US “does not seek to fight the Russians, the government of Syria or any groups that may be providing support to Syria.”

However, the US responded to the Russian drills by its own drill involving over 100 Marines flown to southeast Syria for “snap live-fire exercises” in order to send a “strong message” to Russia after earlier last week Moscow warned its forces could attack in the area near US-occupied At Tanf.

6. GLOBAL ISSUES

 

7  OIL ISSUES

 

8 EMERGING MARKET ISSUES.

Argentina

Argentina’s annual inflation rate just hit 34.4% with the Peso hitting an all time low of 39.55 to the dollar

(courtesy Gillespie/Bloomberg)

Argentina’s Inflation Rate Hits Highest Level of Macri Era

  • Prices rose 3.9% in August from July, most since at least 2016
  • Annual inflation marked 34.4%, likely to accelerate further
Mauricio MacriPhotographer: Christopher Goodney/Bloomberg

Consumer prices in Argentina rose at their fastest pace in August since the nation’s statistics agency regained credibility in 2016, another sign that South America’s second-largest economy is heading for a recession this year.

Inflation reached 3.9 percent in August from July, the fastest pace the agency, known as INDEC, has reported since President Mauricio Macri overhauled it. The agency was widely discredited before that, with the previous government accused of fibbing the numbers. Prices rose 34.4 percent compared to a year ago, according to data published Thursday.

The figures were released just an hour after the peso closed at a record-low of 39.55 per dollar, which is likely to further fuel inflation. A drought, rising U.S. interest rates, policy errors and communication missteps have pulled Argentina toward recession this year.

Inflation, economic growth and the peso’s performance are expected to worsen more. Economists see inflation reaching 40 percent by the end of this year, and the economy contracting nearly 2 percent, according to the most recent central bank survey. That’s a far cry from the projections of 3 percent growth and 19 percent inflation made at the beginning of the year. The peso is already down 50 percent this year, the worst-performing currency in emerging markets.

end

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

Euro/USA 1.1633 UP .0007/ 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  GREEN EXCEPT LONDON

 

USA/JAPAN YEN 111.55   UP 0.336  (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 1.3050 UP   0.0008  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.3005  UP .0002(CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS THURSDAY morning in Europe, the Euro ROSE by 7 basis point, trading now ABOVE the important 1.08 level RISING to 1.1633; / Last night Shanghai composite CLOSED UP 30.47POINTS OR 1.15%  /Hang Sang CLOSED UP 669.45 POINTS OR 2.54% /AUSTRALIA CLOSED DOWN  0.70% / EUROPEAN BOURSES ALL GREEN EXCEPT LONDON

 

The NIKKEI: this THURSDAY morning CLOSED UP 216.71 POINTS OR 0.96%

 

Trading from Europe and Asia

1/EUROPE OPENED ALL GREEN EXCEPT LONDON 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang UP 669.45 POINTS OR 2.54%  /SHANGHAI CLOSED UP 30.47 POINTS OR  1.15%

Australia BOURSE CLOSED DOWN 0.70%

Nikkei (Japan) CLOSED UP 216.71 POINTS OR 0.96%

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1205.60

silver:$14.20

Early THURSDAY morning USA 10 year bond yield: 2.98% !!! UP 2 IN POINTS from TUESDAY night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/

The 30 yr bond yield 3.12 UP 1  IN BASIS POINTS from WEDNESDAY night. (POLICY FED ERROR)/

USA dollar index early THURSDAY morning: 94.86 UP 6  CENT(S) from WEDNESDAY’s close.

This ends early morning numbers THURSDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now your closing THURSDAY NUMBERS \1: 00 PM

 

Portuguese 10 year bond yield: 1.86% DOWN 0    in basis point(s) yield from WEDNESDAY/

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

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

ITALIAN 10 YR BOND YIELD: 2.95 DOWN 1   POINTS in basis point yield from WEDNESDAY/

 

 

the Italian 10 yr bond yield is trading 148 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: RISES DOWN TO +.42%   IN BASIS POINTS ON THE DAY

END

IMPORTANT CURRENCY CLOSES FOR THURSDAY

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

Euro/USA 1.1673 UP .0048(Euro UP 48 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 111.91 UP 0.694 Yen DOWN 69 basis points/

Great Britain/USA 1.3107 UP .0062( POUND UP 62 BASIS POINTS)

USA/Canada 1.3002  Canadian dollar DOWN 1  Basis points AS OIL FELL TO $68.64

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

This afternoon, the Euro was ROSE BY 48 BASIS POINTS  to trade at 1.1673

The Yen FELL to 111.91 for a LOSS of 69 Basis points as NIRP is STILL a big failure for the Japanese central bank/HELICOPTER MONEY IS NOW DELAYED/BANK OF JAPAN NOW WORRIED AS AS THEY ARE RUNNING OUT OF BONDS TO BUY AS BOND YIELDS RISE

The POUND GAINED 62 basis points, trading at 1.3107/

The Canadian dollar LOST 1 basis points to 1.3002/ WITH WTI OIL FALLING TO 68.64

The USA/Yuan,CNY closed UP AT 6.8448-  ON SHORE  (YUAN DOWN)

THE USA/YUAN OFFSHORE:  6.8451 (  YUAN DOWN)

TURKISH LIRA:  6.1081

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

 

 

Your closing 10 yr USA bond yield DOWN 0  IN basis points from WEDNESDAY at 2.96 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.09 DOWN 1  in basis points on the day /

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

Your closing USA dollar index, 94.65 DOWN 15 CENT(S) ON THE DAY/1.00 PM/

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

London: CLOSED DOWN  31.79 POINTS OR 0.43%

German Dax : CLOSED UP 23.25 POINTS  OR 0.19%
Paris Cac CLOSED DOWN 4.01 POINTS OR 0.08%
Spain IBEX CLOSED UP 22.40 POINTS OR 0.24%

Italian MIB: CLOSED DOWN:  116.82 POINTS OR 0.56%/

 

 

 

WTI Oil price; 58.64  1:00 pm;

Brent Oil: 78.34 1:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    68.47/ THE CROSS HIGHER BY  0.53 ROUBLES/DOLLAR (ROUBLE LOWER BY 53 BASIS PTS)

USA DOLLAR VS TURKISH LIRA:  6.1081 PER ONE USA DOLLAR.

TODAY THE GERMAN YIELD RISES +.42 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:$68.82

BRENT: $78.33

USA 10 YR BOND YIELD: 2.97%

USA 30 YR BOND YIELD: 3.11%/

EURO/USA DOLLAR CROSS: 1.1691 UP .0065 ( UP 65 BASIS POINTS)

USA/JAPANESE YEN:111.97 UP 0.756 (YEN DOWN 76 BASIS POINT/ .

USA DOLLAR INDEX: 94.55 DOWN 35 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.3109 UP 65 POINTS FROM YESTERDAY

the Turkish lira close: 6.0843

the Russian rouble:  68.26 UP 0.73 roubles against the uSA dollar.(UP 73 BASIS POINTS)

 

Canadian dollar: 1.3006 DOWN 4 BASIS pts

USA/CHINESE YUAN (CNY) : 6.8448  (ONSHORE)

USA/CHINESE YUAN(CNH):  6.8430 (OFFSHORE)

German 10 yr bond yield at 5 pm: ,0.42%

 

The Dow closed  UP  147.86 POINTS OR 0.57%

NASDAQ closed UP 59.48  points or 0.76% 4.00 PM EST


VOLATILITY INDEX:  12.34  CLOSED DOWN 0.80

LIBOR 3 MONTH DURATION: 2.331%  .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 Face Swarm Of Hindenburg Omens As Treasury Vol

Nears Record Low

 

 

A growing cluster of Hindenburg Omens is raising anxiety levels…

As US equities decouple from the rest of the world and push to ever higher record highs.

As Bloomberg notes, on both the New York Stock Exchange and the Nasdaq there have been eight of these technical patterns over the past six sessions, Sundial Capital’s Jason Goepfert said, the biggest cluster since 2014 and the third-longest stretch in 50 years.

The indicator, named after the German zeppelin that caught fire and crashed more than eight decades ago, gauges indecision in the market and is designed to predict a decline within 40 days.

And while warning signals are flashing in equity land, uncertainty in US Treasury bond markets has plummeted to near record lows…

The CBOE/CBOT 10-year U.S. Treasury Note Volatility fell to 3.38 today, which is the lowest since December when it fell to a record low.

Back to today’s markets, they were uncharacteristically quiet with Trump’s tweet denial of WSJ’s trade talks storythe only news catalyst for a move… (Small Caps and Trannies underperformed on the day)

 

But that impact yuan more than stocks…

 

S&P topped 2,900 intraday and it appears someone wanted to ensure a close above that level…

Thanks to some panic-selling of vol in the last 30 mins…

China stocks were miraculously lifted in the afternoon session…

 

If you’re in the mood for a laugh, here is China’s ‘Tesla’ – NIO – which soared 72% today (after its disappointing IPO yesterday at the low end of its range)…

 

 

Treasury yields tumbled on the CPI miss this morning, but retraced those gains after Europe closed…

 

The Dollar Index dropped once again (3rd drop in the last 4 days)…

 

But EM FX was mixed with Argentina and Brazil dropping as Lira, Rand, and Ruble rallied…

Cryptocurrencies bucked their recent trend and ended in the green today, with Bitcoin managing to scramble up to unchanged on the week…

 

Despite the dollar weakness, commodities could not maintain a bid, fading after the CPI disappointment as Reflation bets faded…

 

WTI dropped back below $69 and Gold futures pushed down towards $1200…

 

Finally, we thought it interesting that the entire Chinese stock market capitalization is now just 5 times larger than AAPL’s (down from nearly 14 times back at the peak of its 2015 bubble)…

The country’s stock market, which is no longer the world’s second biggest, has dropped in value as concerns over economic growth and a trade war with the U.S. linger. China’s market capitalization now stands at $5.7 trillion, leaving its multiple over Apple near the lowest since 2012, according to data compiled by Bloomberg.

 

END

 

market trading/this morning

 

end

Market data

Consumer prices supposedly have been contained at 2.7% vs expectations of a 2.8% rise. However services are still very much inflationary. Even hour earnings are on the rise and this in very inflationary!! The dollar tanks, yields tank

(courtesy zerohedge)

Dollar, Yields Tumble As Consumer Price Growth Slumps, Disappoints

Echoing yesterday’s unexpected PPI drop, Consumer Price growth slowed dramatically in August, missing expectations by the most since May 2017 (following the first monthly drop in PPI since Jan 2017) sparking a drop in the dollar and bond yields.

CPI slowed to 2.7% YoY versus expectations of a  2.8% rise:

 

Core CPI seemed to hit the ceiling once again and slump:

Once again all US inflation is contained in services, with core goods on the cusp of deflation:

The moderation in the core CPI reflected a 1.6% drop in volatile apparel prices.

Even so, the broader slowdown follows data showing a surprise drop in producer prices and suggests the path of inflation could be softer than expected.

At the same time, freight prices and rising wages, along with tariffs and counter- levies, may keep putting upward pressure on inflation. Additionally, the index for medical care fell 0.2% for a second month.

The shelter category, responsible for about one-third of the CPI, showed a 0.3 percent gain, in line with recent increases but slowed YoY, up 3.4% YoY, down from 3.5% and rent inflation rose 3.61% YoyY, down from 3.63%

Prices of new automobiles were unchanged, the first month without a gain since April, while used cars and trucks rose 0.4 percent.

Airfares rose 2.4% following a 2.7% advance in July, amid higher fuel prices, one of the biggest costs for airlines.
Gasoline prices increased 3% in August from the prior month, the most since April, and were up 20.3% Y/Y.

There was some good news: as inflation stalled and wages rose, real hourly earnings posted a 0.2% increase in August, the first in 4 months.

 

Meanwhile, markets were not impressed by the inflation print, which sparked a drop in the dollar…

While bonds once again defied the bears as yields tumbled to the lowest since Monday.

END

A detailed look at the August budget deficit which just hit a huge 222 billion dollars for the month, the highest deficit of recorded history.  Spending advanced by a whopping 433 billion dollars

(your detailed August budgetary deficit/zerohedge)

US Government Spends A Record $433 Billion In One Month As Deficit Explodes

Two days ago we previewed the the US budget deficit for the first 11 months of fiscal 2018, which according to CBO data, hit $895 billion, up $222 billion or 39% from the same period last year. Additionally, we noted that according to CBO calculations, the US would hit a $1 trillion deficit in calendar 2019, one year sooner than the previous forecast of 2020.

Today, the US Treasury released the detailed budget deficit breakdown for the month of September and the first 11 months of the year, and the numbers are scary.

According to the latest Monthly Treasury Statement, in August, the US collected only $219BN in tax receipts – consisting of $106BN in individual income tax, $93BN in social security and payroll tax, a negative $3BN in corporate tax and $24BN in other taxes and duties- a drop of 3.2% from the $226BN collected last August…

… but more concerning was that in August, the 12 month trailing receipt total was barely higher compared to a year ago, up just 0.3% Y/Y after rising as much as 3.1% at the end of 2017, and on the verge of turning negative year over year.

The real highlight of the August budget report was that government outlays,or total spending, soared to $433.3 billion, not only 30% higher than a year ago, but the highest government monthly outlay of any month on record.

This is where the money was spent: social security ($108BN), defense ($65BN), Medicare ($83BN), Interest on Debt ($32BN), and Other ($146BN).

This resulted in a August budget deficit of $214 billion, which was not only one of the highest one-month deficits on record, but also the highest August deficit on record.

The August deficit brought the cumulative 2018F budget deficit to over $898BN during the first 11 month of the fiscal year, up a whopping 40% over the past year.

This was the highest 12 month cumulative deficit since February 2013; as a reminder the deficit is expected to increase further amid the tax and spending measures, and rise above $1 trillion as soon as next year.

And while the August numbers had a few calendar quirks, until recently Most Wall Street firms forecast a deficit for fiscal 2018 – which closes on September 30 – of about $850 billion, a number which has already been surpassed by $50 billion, at which point things get… much worse. As we showed In a recent report, CBO has also significantly raised its deficit projection over the 2018-2028 period.

But while out of control government spending is clearly a concern, an even bigger problem is what happens to not only the US debt, which recently hit $21.3 trillionbut to the interest on that debt, in a time of rising interest rates.

As the following chart shows, US government Interest Payments are already rising rapidly, and just hit an all time high of $538 billion in Q2 2018.

Interest costs are increasing due to three factors: an increase in the amount of outstanding debt, higher interest rates and higher inflation. Needless to say, all three are increasing; furthermore, a rise in the inflation rate boosts the upward adjustment to the principal of TIPS, increasing the amount of debt on which the Treasury pays interest, turbocharging the amount of interest expense.

The bigger question is with short-term rates still just around 2%, what happens when they reach the mid-3% as the Fed’s dot plot suggests it will?

end

This is a huge global Bellwether:  JPMorgan warns that its 3rd quarter revenue will be down from a year ago

the global economies have stalled

(courtesy zerohedge)

JPMorgan Warns Q3 Revenue Will Be Down From A Year Ago

With less than three weeks to go until the end of the quarter, the profit warnings are starting to emerge, and today none other than JPMorgan warned that its Q3 trading revenue would be down compared to 2017.

Speaking at a New York conference, CFO Marianne Lake said that “our markets revenues will be down year-on-year, about mid-single digits.” That was the bad news; the good news is that the bank’s other businesses are doing better: net interest income, loan growth and fees from investment banking are all expected to be better than the company previously expected, Lake said quoted by Bloomberg.

Specifically, net interest income will be around $55.5 billion for 2018, while investment-banking fees will be “strong” and core loans will increase at the high end of a 6% to 7% range, she said. Furthermore, JPMorgan’s book of what it considers core loans expanded 7% in the second quarter, surprising some analysts who had forecast subpar results in that business.

The better than expected (non-trade) results will cost JPM, however: Lake said that total expenses will rise by half a billion to $63.5 billion from the $63 billion previously forecast .

Meanwhile, at the same conference Bloomberg reported that Citigroup also raised its forecasts for profitability and expense reductions. Citigroup’s outgoing CFO John Gerspach said part of the improved outlook comes from U.S. tax reforms and “additional benefits of investments.”

And while the banking appears to be doing well in the current quarter, still largely the result of the ongoing sugar high in the economy, the weakness in trading will likely be more bad news for Goldman which is currently on the verge of extending its record losing streak to 12 days.

end

USA economic/general stories
The White House threatens a military response against any Iran backed militias attack into Iraq
(courtesy zerohedge)

White House Threatens Military Response Against Iran-Backed Militias in Iraq

Iraq may once again, for the first time in nearly a decade, become a theater of US-Iran confrontation according to a White House statement published Tuesday evening.

“The United States will hold the regime in Tehran accountable for any attack that results in injury to our personnel or damage to United States government facilities,” press secretary Sarah Sanders said in a written statement posted to WhiteHouse.gov. “America will respond swiftly and decisively in defense of American lives.”

Image source: Long War Journal

The threat of military force comes after the American embassy in Baghdad’s ‘green zone’ came under a brazen overnight mortar attack last Thursday, which left no one injured but started a blaze near the sprawling embassy’s gate.

Up to four mortars were fired in what officials confirmed was a targeted assault American diplomatic soil. Defense analysts and officials were quick to blame Iran-backed militias in the area, which had previously in the week vowed in a joint statement to expel all “foreign occupying forces” from the country.

And days later multiple rockets were fired at the Basra airport, which is also site of the United States consulate for the area. Though denying it had a role in events in Basra or Baghdad, Tehran’s leaders did admit to a major missile attack on the headquarters of the Kurdistan Democratic Party in Northern Iraqi Kurdistan, which resulted in up to a dozen killed and scores wounded.

Amichai Stein

@AmichaiStein1

: Iran IRGC confirm missile strikes on Kurd rebels in Iraq: 7 missiles fired

The White House statement, which condemns “life threatening attacks” against “the United States consulate in Basra and against the American embassy compound in Baghdad” also follows two weeks of heightened sectarian tensions across various parts of the country, but especially the southern Sunni-majority city of Basra, where the Iranian consulate was burned to the ground after it was stormed by a mob late last week.

Secretary Pompeo

@SecPompeo

Deeply concerned about reports of transferring ballistic missiles into Iraq. If true, this would be a gross violation of Iraqi sovereignty and of UNSCR 2231. Baghdad should determine what happens in Iraq, not Tehran.

The statement puts Iran on notice and pledges that it will be held responsible for such incidents: “Iran did not act to stop these attacks by its proxies in Iraq, which it has supported with funding, training, and weapons,” reads the press release.

mostafa.m@MostafaMe4


Sep 11
Heather Nauert press conference
The condemned behavior the unstabilizing region and missile attack on
@pjpaton @statedeptspox

US officials have yet to reveal any evidence that Iran was directly behind either the embassy or Basra consulate attacks, but days prior ten pro-Iran Shia militias in the country published a statement vowing to expel foreign troops and advisers by force if they didn’t immediately leave Iraq.

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

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

The Shia militias later blamed Washington for being behind the mass anti-Iran and anti-Iraqi government protests that engulfed Basra and resulted in the Iranian consulate being burned down along with dozens of Shia militia headquarters and other facilities across the city.

“The American Embassy is directing the situation in Basra,” charged Abu Medhi al-Mohandis in public statements. Mohandis is a well-known Shiite militia commander who U.S. officials accuse of long being on Iran’s payroll.

All of this also comes after allegations that Iran has transferred ballistic missiles to its proxy forces in Iraq, which are said to be easily capable of hitting Tel Aviv and Riyadh, according to Western and Iraqi intelligence sources cited in a recent Reuters report.

Given current broader tensions in the region and charges of “Iranian expansion” it will be interesting to see if the US again ramps up operations in Iraq. Should the proxy war waging across the border in Syria actually come to an end, it may very well be that Iraq again becomes the new ground zero for the West’s anti-Iran proxy war

end

Goldman Sachs warns of a huge 6 trillion dollars in losses in a global trade war.

(courtesy Goldman Sachs/zerohedge)

Goldman Warns Of $6 Trillion In Losses In A “Severe Trade War”

It was only three months ago that most Wall Street analysts expected that Trump’s trade war threat was just more jawboning from the unorthodox president, with those few who modeled a “worst case scenario ” – such as Barclays – projected that a 10% tariff on all US imports and exports would have a modest overall impact on the US stock market.

Not so anymore, because with the US set to slap a new, $200 billion round of tariffs on Chinese imports any minute, there is a new urgency in forecasting how bad trade war with China could get: after all, with the US economy humming for now, and with blockbuster corporate earnings, it’s the only risk variable moving the market day to day.

Today, after weeks of downplaying the threat of a “worst case scenario”, Goldman Sachs became the latest to weigh in on this topic, highlighting the potential danger to Corporate America if a full-blown trade war erupts. And in a radical departure from his traditional optimism, Goldman chief strategistDavid Kostin went so far as now calling for a bear market, with the S&P dropping 25%, resulting in over $6 trillion in market cap losses, should the U.S. impose 10% tariffs on all imports.

In a sensitivity analysis evaluating a baseline case, as well as a moderate and severe trade war, Kostin predicts that a 25% tariff imposed just on Chinese goods would wipe out growth for S&P 500 companies next year, keeping S&P500 EPS flat at $159. In the extreme case – the one which Barclays evaluated back in June – and in which the U.S. imposed 10% tariffs on all global imports, earnings would drop 10% as costs went up for Americans while crushing corporate profits.

In addition to hammering earnings, Goldman also expects that the PE multiple of the S&P would also contract, dropping from the current 17x to 15x, and resulting in an S&P plunge of 25% from the current 2,888 to 2,200, which would lead to a bear market and wipe out over $6 trillion in market capitalization. For the die-hard BTFDers, Goldman also left an optimistic scenario which sees the S&P rising as high as 3,140 by the end of 2019.

For now, the US – if not global – stock market is taking trade war in stride, and the S&P500 rebounded on Wednesday after a another WSJ report that Trump would proposing a new round of trade talks with China in the near future. The counter argument is that that the higher the S&P rises, the more emboldened Trump becomes that he is winning the trade war and does not need to negotiate with China which will be forced to surrender sooner or later. Which is also why today’s olive branch to China came from Steven Mnuchin and not Trump himself.

Meanwhile, most analysts are convinced that the only event that could force Trump to sit down and negotiate with Beijing in earnest, is a sharp drop in the stock market. Ironically, until that happens, Trump will keep on “winning” the trade war, at least until the already record disconnect between the rest of the world and the S&P grows large enough…

… that the US stock market collapses under its own weight.

end

That did not last long:  Trump states that contrary to Mnuchin, the USA is under no pressure to make a deal with China

(courtesy zerohedge)

Trump Denies WSJ Report, Says “Under No Pressure To Make Deal With China”

The reason why the market spiked yesterday just before noon, if briefly, was a WSJ report that the Trump admin is reaching out to China for a new round of trade talks, in an effort “to give Beijing another opportunity to address Washington’s concerns over trade issues before the Trump administration implements additional tariffs on Chinese imports.”

Many took this with a grain of salt – after all this would be the third time in the past month that the US and China were supposedly trying to break the trade war deadlock – but more importantly, the person behind the outreach was noted globaliset Steven Mnuchin who as we said yesterday, “is well known to be for a resumption of better trade relations”, while trade hawk Navarro has been pushing for a far more hard line stance with China.

To resolve this confusion, we said “Perhaps the best option is just to wait for Trump to tweet his own thoughts on the matter.”

Well, moments ago Trump did just that, when he poured cold water on the diplomatic implications of the WSJ’s report, tweeting that “The Wall Street Journal has it wrong, we are under no pressure to make a deal with China, they are under pressure to make a deal with us.”

Why? Because as we also said yesterday, Trump remains convinced that he has all the bargaining leverage because – according to the stock market – he is winning the trade war with Beijing, to wit:

Our markets are surging, theirs are collapsing. We will soon be taking in Billions in Tariffs & making products at home.

So where does that leave us? Well, pretty much where we were before the WSJ report, or as Trump put it, “If we meet, we meet?”

Donald J. Trump

@realDonaldTrump

The Wall Street Journal has it wrong, we are under no pressure to make a deal with China, they are under pressure to make a deal with us. Our markets are surging, theirs are collapsing. We will soon be taking in Billions in Tariffs & making products at home. If we meet, we meet?

Even though the storm has been reduced to a category 2, Flrence is expected to crate huge damage in excess of 30 billion dollars

(courtesy zerohedge)

“Even Rescuers Can’t Stay”: Deadly Rain, Storm Surges Expected Even As Florence Weakens To Cat 2

With roughly 24 hours remaining until Hurricane Florence makes landfall in southeastern North Carolina, the storm has reportedly weakened to a Category 2 Hurricane. But meteorologists warn that this isn’t any reason for comfort: Because while the storm’s winds have slowed (from around 140 mph to a maximum of 125 mph), the potential for devastation from what’s expected to be one of the most extreme storms in American history remains acute.

And while the storm is no longer considered a “major” hurricane, CNN reports that its reach has expanded. And with the first wind bands set to batter the state beginning later Thursday, the Associated Press warned.

Despite the downgrade, officials warned that the storm will still have a devastating impact.

“Do you want to get hit with a train or do you want to get hit with a cement truck?” said Jeff Byard, an administrator with the Federal Emergency Management Agency.

Analysts are projecting as much as $30 billion in losses due to the storm. In what looks like a best case scenario, Florence eventually could strike as merely a Category 1 hurricane with winds less than 100 mph, but that’s still enough to cause at least $1 billion in damage, Weather Underground meteorology director Jeff Masters said.

According to the NHC, The storm is expected to unleash extreme storm surges, historic flooding, and damaging winds beginning later Thursday, with the southeastern portion of North Carolina set to bear the brunt of Florence’s wrath. Rainfall could range between 20 inches to a staggering 40 inches. Between the rains and the storm surge, the flooding could be “catastrophic,” the Washington Post warned. As the storm moves inland on Friday, a pocket of tropical-storm-force winds nearly 400 miles wide will engulfing much of southern North Carolina and nearly all of South Carolina.

National Hurricane Center

@NHC_Atlantic

Here are the 5 AM EDT Key Messages for Hurricane #Florence. Follow the latest at http://hurricanes.gov

As of 5 am on Thursday, the storm’s winds were topping out at around 110 mph as it barreled northwest at 17 mph. Per the NHC, the storm is about 205 miles east-southeast of Wilmington, NC. The storm’s winds extend 80 miles from its center, while tropical-storm-force winds extend 195 miles outward.

Some of the heavy rains associated with the storm could creep into neighboring Georgia, which could see rains between 6 inches and 12 inches. In the Carolinas, the rain could break North Carolina’s record for a tropical storm, 24 inches, which was set in 1999 near Wilmington. As the storm moves inland, Virginia, West Virginia , Maryland, Washington and Pennsylvania could also experience heavy rains of up to 8 inches, with downed trees and flooding also a possibility.

Here’s a breakdown on how large the storm surge could be in certain areas (courtesy of the Washington Postat its highest, the surges could reach up to 13 feet:

  • Cape Fear to Cape Lookout, including the Neuse, Pamlico, Pungo and Bay Rivers: 9 to 13 feet
  • North Myrtle Beach to Cape Fear: 6 to 9 feet
  • Cape Lookout to Ocracoke Inlet: 6 to 9 feet
  • South Santee River to North Myrtle Beach: 4 to 6 feet
  • Ocracoke Inlet to Salvo, N.C.: 4 to 6 feet
  • Salvo to North Carolina/Virginia Border: 2 to 4 feet
  • Edisto Beach to South Santee River: 2 to 4 feet

State officials continued their warnings after issuing evacuation orders affecting some 3 million people in the Carolinas. The storm’s lurch south led Georgia’s governor to declare a state of emergency Wednesday afternoon for all 159 counties, with a population of 10.5 million people. In the Carolinas and Virginia, more than 10 million people are under a storm watch. Hundreds of schools have closed, and federal officials have warned that the millions of people in the storm’s path could be without electricity for weeks if high winds down power lines and massive rainfall floods equipment. There are 16 nuclear reactors in the region, and crews at the one closest to where landfall is forecast readied the station, at Brunswick, for a shutdown.

Chart

President Trump has approved emergency disaster declarations for the Carolinas and Virginia, which frees up funds for relief and recovery. “We’re as ready as anybody has ever been,” he said after a briefing with FEMA chief Brock Long and Homeland Security Secretary Kirstjen Nielsen.

“North Carolina, my message is clear,” a grim Gov. Roy Cooper said at a briefing Wednesday. “Disaster is at the doorstep and it’s coming in.”

“You put your life at risk by staying,” North Carolina Gov. Roy Cooper said. “Don’t plan to leave once the winds and rains start.”

Both Cooper and South Carolina Gov. Henry McMaster told the more than 1 million people who have been directed to leave that if they don’t do so, they will be on their own.

Even some hardened locals who have weathered previous storms are deciding to leave, according to CNN.

“Even the rescuers cannot stay there,” he said.

Already, more than 300,000 people have left South Carolina. In Carolina Beach, authorities have instituted a 24-hour curfew and ceased allowing traffic to the island via the only bridge between the island and the mainland. The town is less than 5 feet above sea level and officials worry that as many as 1,000 of the town’s 6,300 residents plan to stick it out.

Susan Faulkenberry Panousis has stayed in her Bald Head Island, North Carolina home during prior hurricanes, but not this time. She packed up what she could and took a ferry. “When that last ferry pulls out…it’s unnerving to see it pull away and know, ‘That’s the last chance I have of getting off this island,'” she said Wednesday.

The storm has captivated astronauts aboard the International Space Station. Some of them have taken to tweeting pictures of the storm.

View image on Twitter

Alexander Gerst

@Astro_Alex

Watch out, America! #HurricaneFlorence is so enormous, we could only capture her with a super wide-angle lens from the @Space_Station, 400 km directly above the eye. Get prepared on the East Coast, this is a no-kidding nightmare coming for you. #Horizons

SWAMP STORIES

From the King report and special thanks from Chris Powell for sending this to us:

(courtesy King report)

Former National Security Agency Director Mike Rogers on Tuesday disputed a report published in May 2017 alleging that President Donald Trump asked him to push back against the FBI’s collusion investigation.  “I’ve never had a discussion with collusion with the president of the United States,” Rogers said at an event held at George Mason University, according to CBS News…
New Strzok-Page texts reveal others were ‘leaking like mad’ in lead up to Trump-Russia probe
Strzok again replied: “Think our sisters [other intel agencies] have begun leaking like mad. Scorned and worried, and political, they’re kicking into overdrive.”…
Damning New Strzok Text to Page: “The Times is Angry with Us about the WP Scoop
The text messages suggest that Strzok, along with his paramour, former FBI Attorney Lisa Page, had been in contact with reporters from both newspapers. Strzok specifically mentioned two-time Pulitzer Prize-winning New York Times writer Michael Schmidt his text message to Page…
George Papadopoulos @GeorgePapa19: Hons: @SenatorBurr and @MarkWarner if my lawyers are fine with me testifying, I am more than happy to discuss my suspicious encounters with Alexander Downer; US officials who were reaching out to me around that time,  Stefan Halper,  “Putin’s niece” and of course Joseph Mifsud.
     If I do testify, I think it’s also important for me to detail my interactions with US intelligence officials from US Embassy, London.  Gregory Baker and Terrence Dudley.  Both wanted to ingratiate themselves in campaign via myself. [Bigly important breaking news, if true]

end

Unbelievable:  at the 11th hr we have a #MeToo accuser who will not come forward.  The incident happened while both the accuser and Kavanaugh were in high school.

please give me a break!!

(courtesy zerohedge)

Hail Mary: Kavanaugh Now Has A #MeToo Accuser, Who Won’t Come Forward

California Democratic Rep. Dianne Feinstein has released a frustratingly vague statement about a letter in her possession which allegedly accuses Supreme Court nominee Brett Kavanaugh of “an incident involving Kavanaugh and a woman while they were in high school,” reports The Intercept.

“Senate Judiciary Committee have privately requested to view a Brett Kavanaugh-related document in possession of the panel’s top Democrat, Dianne Feinstein, but the senior California senator has so far refused, according to multiple sources familiar with the situation.” –The Intercept

The letter reads:

“I have received information from an individual concerning the nomination of Brett Kavanaugh to the Supreme Court. That individual strongly requested confidentiality, declined to come forward or press the matter further, and I have honored that decision. I have, however, referred the matter to federal investigative authorities”

David Martosko

@dmartosko

This is so vague that everyone who reads it will assume the worst.

Was that the point of releasing it?

end

WE WILL SEE YOU ON FRIDAY NIGHT.

 

 

HARVEY

 

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