SEPT 21/GOLD DOWN $9.90 TO $1196.80 BUT SILVER HOLDS AND IS UP 2 CENTS TO $14.31/ANOTHER HUGE 2 MILLION OZ QUEUE JUMPING AT THE SILVER COMEX AS THE BANKERS ARE WORRIED ABOUT SILVER’S STRENGTH IN LONDON AND IN THE EAST/USA SANCTIONS CHINA AFTER IT BUYS WEAPONS FROM RUSSIA/DANSKE BANK WILL NO DOUBT LOSE ITS COVETED AAA RATING AS THE FALLOUT FROM THE SCANDAL INTENSIFIES/INDIA IN TURMOIL TODAY WITH DEFAULTS ON A BIG FINANCE OPERATION: CREDIT DEFAULTS SURGE ON SOVEREIGN INDIA BONDS/ TERRIFIC PAPER BY Nicholas Biezanek AS HE ANALYZES THE ISSUANCE OF EFP’S FOR THE PETROYUAN CONTRACTS/NEW YORK TIMES REPORTS THAT ROSENSTEIN WANTED TO WEAR A WIRE TO TRAP TRUMP AS SOME STAFF MEMBERS WANTED INVOKE ARTICLE 25 ON OUR PRESIDENT/

 

 

GOLD: $1196.80 DOWN  $9.90 (COMEX TO COMEX CLOSINGS)

Silver:   $14.31  UP 2 CENTS (COMEX TO COMEX CLOSING)

 

Closing access prices:

Gold $1199.20

silver: $14.30

 

 

 

 

 

For comex gold:

SEPT/

 

And now Sept:

 

 

NUMBER OF NOTICES FILED TODAY FOR SEPT CONTRACT:  0 NOTICE(S) FOR 100 OZ 

Total number of notices filed so far for Sept:  609 for 60900 (1.8942 tonnes)

 

For silver: 

Sept

 

 

34 NOTICE(S) FILED TODAY FOR

140,000 OZ/

Total number of notices filed so far this month: 6934 for 34,670,000 oz

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Bitcoin: OPENING MORNING TRADE  $6705: UP  $218

 

Bitcoin: FINAL EVENING TRADE: $6769  UP 287.00

 

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: $1212.79

NY price  at the same time:$1208.00

 

PREMIUM TO NY SPOT: $4.79

XX

Second gold fix early this morning: $ 1215.33

 

 

USA gold at the exact same time:$1209.00

 

PREMIUM TO NY SPOT:  $6.33

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 FAIR SIZED 802 CONTRACTS FROM 206,832 DOWN TO 206,030 DESPITE YESTERDAY’S 3 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 FAIR SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:

EFP’S FOR SEPT.  1303 EFP’S FOR DECEMBER AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 1601 CONTRACTS. WITH THE TRANSFER OF 1303 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 1303 EFP CONTRACTS TRANSLATES INTO 6.515MILLION OZ  ACCOMPANYING:

1.THE 3 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 39.445 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: 

26,491CONTRACTS (FOR 14 TRADING DAYS TOTAL 26,491 CONTRACTS) OR 132.455 MILLION OZ: (AVERAGE PER DAY: 1892 CONTRACTS OR 9.461 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF SEPT:  132.455 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 18.92% 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:           2,179.27    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 FAIR SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 802 DESPITE THE 3 CENT RISE IN SILVER PRICING AT THE COMEX YESTERDAY. THE CME NOTIFIED US THAT WE HAD A GOOD SIZED EFP ISSUANCE OF 1303  CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) .

TODAY WE GAINED A SMALL SIZED: 501 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:

i.e 1303 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 802  OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A 3 CENT RISE IN PRICE OF SILVER  AND A CLOSING PRICE OF $14.29 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 39.445 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 145% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT AUGUST MONTH/ THEY FILED AT THE COMEX: 707 NOTICE(S) FOR 3,535,000 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 39.445 MILLION OZ.
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018) AND NOW AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

AND YET, WITH THE EXTREMELY HIGH EFP ISSUANCE, WE HAVE A CONTINUAL LOW PRICE OF SILVER DESPITE THE ABOVE HUGE DEMAND.  TO ME THE ONLY ANSWER IS THAT WE HAVE SOVEREIGN  (CHINA) WHO IS ENDEAVOURING TO GOBBLE UP ALL AVAILABLE PHYSICAL SILVER NO MATTER WHERE, EXACTLY WHAT J.P.MORGAN IS DOING. AND IT IS MY BELIEF THAT J.P.MORGAN IS HOLDING ITS SILVER FOR ITS BENEFICIAL OWNER..THE USA GOVERNMENT WHO IN TURN IS HOLDING THAT SILVER FOR CHINA.(FOR A SILVER LOAN REPAYMENT).

IN GOLD, THE OPEN INTEREST FELL BY A FAIR SIZED 1231 CONTRACTS DOWN TO 473,183 DESPITE THE GAIN IN THE COMEX GOLD PRICE/YESTERDAY’S TRADING (A RISE IN PRICE OF $2.80)THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 7834 CONTRACTS:

OCTOBER HAD EFP’S ISSUED AND, DECEMBER HAD AN ISSUANCE OF 7834 CONTACTS  AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 473,183. 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 GOOD SIZED OI GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 6603 CONTRACTS:  1231 OI CONTRACTS DECREASED AT THE COMEX AND 7834 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN:  6603 CONTRACTS OR 660,300 OZ = 20.54 TONNES.  AND ALL OF THIS DEMAND  OCCURRED WITH A GAIN IN THE PRICE OF GOLD/ YESTERDAY TO THE TUNE OF $2.80

 

 

 

YESTERDAY, WE HAD 5414 EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF SEPT : 102,774 CONTRACTS OR 10,277,400 OZ OR 319.67 TONNES (14 TRADING DAYS AND THUS AVERAGING: 7341 EFP CONTRACTS PER TRADING DAY OR 734,100 OZ/ TRADING DAY),,

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 14 TRADING DAYS IN  TONNES: 319.67 TONNES

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

THUS EFP TRANSFERS REPRESENTS 319.67/2550 x 100% TONNES =  12.53% OF GLOBAL ANNUAL PRODUCTION SO FAR IN JULY ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:     5,516.45*  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 SMALL SIZED DECREASE IN OI AT THE COMEX OF 505 DESPITE THE GAIN IN PRICING ($2.80 THAT GOLD UNDERTOOK YESTERDAY) // .  WE ALSO HAD A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 7834 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 7834 EFP CONTRACTS ISSUED, WE HAD GOOD GAIN OF 7329 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

7834 CONTRACTS MOVE TO LONDON AND 1231 CONTRACTS DECREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 20.54 TONNES). ..AND ALL OF THIS HUGE DEMAND OCCURRED WITH A GAIN OF $2.80 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 $9.90  TODAY: / 

NO CHANGSE IN GOLD INVENTORY AT THE GLD:

 

 

 

 

 

 

/GLD INVENTORY   742.23 TONNES

Inventory rests tonight: 742.23 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 UP 2  CENTS TODAY

 

 

WE HAD NO CHANGES FOR SILVER :

 

 

 

 

 

/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 FAIR SIZED 802 CONTRACTS from 206,832 DOWN TO  206,030  AND MOVING A LITTLE FURTHER FROM THE NEW COMEX RECORD SET LAST  MONTH AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  1 1/3 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.  AS YOU CAN SEE, WE HAVE RECORD HIGH OPEN INTERESTS IN SILVER  ACCOMPANIED BY A CONTINUAL LOWER PRICE WHEN THAT RECORD WAS SET…..

 

.

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

 

EFP CONTRACTS FOR SEPTEMBER, 1303 CONTRACTS FOR DECEMBER AND  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1303 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 802 CONTRACTS TO THE 1303 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A NET GAIN OF 501 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 2.505 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 37.395  MILLION OZ INITIALLY STAND FOR SILVER IN SEPTEMBER….

 

 

RESULT: A GOOD SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 3 CENT PRICING GAIN THAT SILVER UNDERTOOK IN PRICING YESTERDAY. BUT WE ALSO HAD A GOOD SIZED 1303 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR SEPTEMBER, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

 

 

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i) FRIDAY MORNING/ THURSDAY NIGHT: Shanghai closed UP 68.24 POINTS OR 2.50%   /Hang Sang CLOSED UP 475.91 POINTS OR 1.73%/   / The Nikkei closed UP 195.00 POINTS OR 0.82%/ Australia’s all ordinaires CLOSED UP 0.45%  /Chinese yuan (ONSHORE) closed UP  at 6.8445 AS POBC STOPS  ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER/Oil DOWN to 70.83 dollars per barrel for WTI and 79.55 for Brent. Stocks in Europe OPENED GREEN//.  ONSHORE YUAN CLOSED UP AT 6.8445 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8387: 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

Last night a global bond sell off as yields rise.  In Japan the government is doing another tapering of its long term  (30 to 40 yr variety as supplies in this area narrow.
( zerohedge)

3 C/  CHINA

a)This could be far reaching!! China is furious after the USA sanctioned China for buying Russian weapons.

This will move China and Russia closer together

( zerohedge)

b)The former head of the POBC Zhou, an extremely clever individual claims that Chinese exporters cold soon ditch the USA markets for other markets

( zerohedge)

 

 

4/EUROPEAN AFFAIRS

i)ITALY

Figures released by Eurostat seem to have suggested that a concentration of EU scientists and engineers left Italy for the UK and Germany

( zerohedge)

ii)DENMARK

This could be far reaching:  Dankse bank holds 1/3 of all deposits in Denmark and this scandal and all of the fines that will be leveled against the bank will be devastating and that could cost its coveted AAA rating

( zerohedge)

iii)UK

The market is not taking the news from Theresa May that UK citizens should prepare for a no deal as there is a UK-EU impasse.

( zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Israel/Russia

Israel reveals the destruction of the Syrian ammunition facility in the attack on Latakia (Monday).  Israel will be sending in their Air Force commander to Moscow with details on how the downing of the Russian reconnaissance plane was series of unfortunate events.  The plane was shot down accidentally by Syrian surface to air missiles.

( zerohedge)

 

6. GLOBAL ISSUES

 

 

 

7. OIL ISSUES

Trump to get his wish:  OPEC tumbles on a report that both OPEC and non OPEC countries will boost oil output by 500,000 barrels per day.

( zerohedge)

 

 

 

8 EMERGING MARKET ISSUES

INDIA

Contagion is spreading to India as they are rocked by a default on one of their big financing companies, IL and FS.

Credit default swaps rise to the highest level in years.

(zerohedge)

 

 

 

9. PHYSICAL MARKETS

i)Another heist in the cryptocurrency space and again it is Japan with a huge $60 million stolen

( Reuters/GATA)

ii)gold trading early this morning: gold flash crashes as crooks release a paper $1.2 billion gold short in the December contract.  We are so thankful that we have regulators watching over us

( zerohedge)

iii)An excellent commentary on the on goings of the Petroyuan oil contract in Shanghai and how this will eventually cause gold to rise: Shanghai also engages the use of EFP’s but on very stringent rules.  Are holders of yuan waiting to turn in their EFP yuan for gold?
a must read…
(courtesy Nicholas Biezanek)

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

 

i)Market trading /GOLD/MARKET MOVERS:

MARKET TRADING

Both the Br. pound and the Cdn loonie both tumble as there is:

1. no foreseeable deal on the Brexit with the EU

2 no deal on NAFTA for Canada

( zerohedge)

 

ii)Market data

Markit reports a huge drop in the USA service component but  the Markit manufacturing rebounds.  The big storm was blamed

( zerohedge)

 

 

iii)USA ECONOMIC/GENERAL STORIES

a)Maybe  Ford was almost raped by his look a like: Chris Garret…a new theory emerges. Ford has now debunked this. However let us see how this plays out
( zerohedge)

b)Trump weighs in and asks pertinent questions on this case:

a) if the attack was as bad we are led to believe, why did she or “her loving parents” not file with local law enforcement? I ask that she bring those filings forward so that we can learn  date, time, and place!”
b)“Why didn’t someone call the FBI 36 years ago?”
( zerohedge)
c)The reason for that solar observatory closing was due to child pornography filtered through this facility
(courtesy zerohedge)

d)Wells Fargo continues to disappoint as they cut 10% of their staff

( zerohedge)

 

iv)SWAMP STORIES

a)Nellie Ohr and James Baker refuse to sit for Congressional testimony and they will be subpoenaed

(courtesy zerohedge)

b)The fun begins:  Trump asks the Inspector General to review documents for declassification on an expedited basis. Trump also states that he has the last word on the matter

( zerohedge)

c)More swamp stories/King report

d)This is totally nuts:  Rosenstein proposed to secretly record Trump in an effort to invoke the 25th amendment.  It sure shows Rosenstein’s resentment of Trump and he should be fired.  Judging by these actions, it sure looks like we found the guy who penned the NY Times op ed earlier this month

( zerohedge)

Let us head over to the comex:

 

The total gold comex open interest FELL BY A FAIR SIZED 1231 CONTRACTS DOWN to an OI level 473,183 DESPITE THE RISE IN THE PRICE OF GOLD ($2.80 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.

 

WE ARE NOW IN THE  NON ACTIVE DELIVERY MONTH OF SEPT..  THE CME REPORTS THAT THE BANKERS ISSUED A  STRONG SIZED COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 7834 EFP CONTRACTS WERE ISSUED:

OCTOBER: 0 EFP’S AND DECEMBER:  7834 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  7834 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 6603 TOTAL CONTRACTS IN THAT 7834 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST 1231 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES:  6603 contracts OR 660,300 OZ OR 20.54 TONNES.

Result: A GOOD SIZED INCREASE IN COMEX OPEN INTEREST WITH THE RISE IN PRICE/ YESTERDAY (ENDING UP WITH THE GAIN IN PRICE OF $2.80). THE  TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES:  6603 OI CONTRACTS..

We are now in the active contract month of SEPTEMBER. For the September contract month, we lost 0 contract and thus the number of  open interest contracts standing for gold in this front month is 17 contracts. We had 0 notice filed  yesterday so we gained 0 contract or an additional NIL oz will stand for gold and these guys refused to accept a fiat bonus and transfer to London.

 

 

 

 

 

THE NEXT ACTIVE DELIVERY MONTH IS  OCTOBER AND HERE THE OI LOST 2844 CONTRACTS DOWN TO 29,779. NOVEMBER SAW A 3 CONTRACT LOSS TO STAND AT 88. DECEMBER SAW ITS OPEN INTEREST RISE BY 1292 CONTRACTS UP TO 368,772.

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

 

FOR THE 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.

 

FOR THE OCTOBER CONTRACT MONTH: OCTOBER IS THE WEAKEST OF ALL DELIVERY MONTHS IN GOLD.

FOR THE COMEX OCT 2017 GOLD CONTRACT MONTH: WE INITIALLY HAD 300,600 OZ STAND FOR DELIVERY OR 9.349 TONNES.

AT THE CONCLUSION OF THE OCTOBER TRADING MONTH: 333,300 OZ OR 10.367 TONNES FINALLY STOOD FOR DELIVERY AS WE HAD ONE DAY OF QUEUE JUMPING.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total silver OI FELL BY A FAIR SIZED 802 CONTRACTS FROM 206,832 DOWN TO 206,660 (AND FURTHER FROM TO THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  (THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S OI COMEX LOSS OCCURRED WITH A 3 CENT GAIN IN PRICING.

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF SEPT.AND, WE WERE  INFORMED THAT WE HAD A GOOD SIZED 1303 EFP CONTRACTS:

FOR SEPT:  0 CONTRACTS  AND FOR DECEMBER: 1303 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: 1303.  ON A NET BASIS WE GAINED 501 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A 802 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 1303 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN ON THE TWO EXCHANGES:   501 CONTRACTS…AND ALL OF  DEMAND OCCURRED WITH A 3 CENT GAIN

 

 

 

The next active delivery month after August for silver is September and here the OI FELL by 297 contracts DOWN to 983.

We had 707 notices filed on yesterday so we gained another monstrous 410 contracts or 2,050,000 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 last week, queue jumping resumes in earnest  in the silver pits. In the past 3 days we gained a whopping 8,535 million oz as there seems to be a huge fire (shortage) of silver somewhere.

 

 

 

 

 

October LOST 26  contracts to stand at 508. November saw a GAIN of 26 contracts to stand at 200.

After Nov., the next big delivery month is December and here the OI fell by 616 contracts down to 175,958 contracts.

We had 28 notice(s) filed for 140,000 OZ for the SEPTEMBER 2018 COMEX contract for silver

 

Trading Volumes on the COMEX

 

PRELIMINARY COMEX VOLUME FOR TODAY: 334,338 contracts

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  252,554 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 39.445 MILLION OZ OF SILVER INITIALLY STAND.  AS I HAVE STATED ALL MONTH: “WE WILL NO DOUBT PASS LAST YEAR’S TOTAL OF 32.875 MILLION OZ ONCE SEPTEMBER ENDS AS THE BANKS SCRAMBLE FOR PHYSICAL SILVER.”…AND WE SURELY  ACCOMPLISHED THIS FEAT.

 

 

AND NOW COMPARISON FOR OCTOBER:

 

FOR THE OCTOBER 2017 CONTRACT MONTH WE HAD 4.205,000 OZ OF SILVER INITIALLY STAND FOR DELIVERY.

BY MONTH’S END WE HAD 5,475,000 OZ FINALLY STAND AS QUEUE JUMPING IN SILVER WAS ALREADY IN THE NORM.

OCTOBER IS A NON ACTIVE DELIVERY MONTH FOR SILVER BUT AS YOU CAN SEE OCT 2017 DELIVERIES WERE PRETTY

GOOD.

 

 

 

 

 

INITIAL standings for SEPTEMBER/GOLD

SEPT. 21-/2018.

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

NIL

 

oz

 

 

No of oz served (contracts) today
0 notice(s)
 NIL OZ
No of oz to be served (notices)
17 contracts
(1700 oz)
Total monthly oz gold served (contracts) so far this month
609 notices
60900 OZ
1.8942 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 tiny activity at  the comex and still  no gold  entered the comex vaults yesterday and today.

 

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 1 withdrawal out of the customer account:
i) out of Delaware: 199.989 oz
total customer withdrawals:  199.989 oz
we had 0 customer deposit
total customer deposits: nil oz
we had 0 adjustments

FOR THE SEPTEMBER 2018 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/2018. contract month, we take the total number of notices filed so far for the month (609) x 100 oz or 60,900 oz, to which we add the difference between the open interest for the front month of SEPT. (17 contracts) minus the number of notices served upon today (0 x 100 oz per contract) equals 62,600 OZ OR 1.9471 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 (609 x 100 oz)  + {17)OI for the front month minus the number of notices served upon today (0 x 100 oz )which equals 62,600 oz standing OR 1.9471 TONNES in this NON  active delivery month of SEPTEMBER.

We gained 0 contract or an additional nil 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 as queue jumping in gold intensifies.  Let us see if this continues throughout the month as it looks like the commercials are scrambling to obtain any physical gold they get a hold of.

 

 

 

 

 

THERE ARE ONLY 4.511 TONNES OF REGISTERED COMEX GOLD AVAILABLE FOR DELIVERY AGAINST 1.9471 TONNES STANDING FOR SEPTEMBER  

 

 

 

total registered or dealer gold:  145,041.066 oz or   4.511 tonnes
total registered and eligible (customer) gold;   8,270,616.995 oz 257.25 tonnes

IN THE LAST 25 MONTHS 98 NET TONNES HAS LEFT THE COMEX.

end

And now for silver

AND NOW THE AUGUST DELIVERY MONTH

SEPTEMBER INITIAL standings/SILVER

SEPT. 21/ 2018
Silver Ounces
Withdrawals from Dealers Inventory nil oz
Withdrawals from Customer Inventory
 971,862.584 oz
Brinks
CNT
Delaware
HSBC

 

 

Deposits to the Dealer Inventory
nil
oz
Deposits to the Customer Inventory
599,417.507
oz
CNT
No of oz served today (contracts)
28
CONTRACT(S)
140,000 OZ)
No of oz to be served (notices)
955 contract
(4,775,000 oz)
Total monthly oz silver served (contracts) 6934 contracts

(34,670,000 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 1 deposit into the customer account

i) Into JPMorgan: nil oz

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

JPMorgan now has 142.435 million oz of  total silver inventory or 48.9% of all official comex silver. (142 million/291 million)

ii) Into CNT:  599,417.507 OZ

 

 

 

 

 

 

 

 

 

 

total customer deposits today: 599,417.507 oz

we had  4 withdrawals from the customer account;

i) Out of Brinks: 335,996.810 oz

ii) Out of CNT: 90,829.834 oz

iii) Out of Delaware: 3017.250 oz

iv) Out of HSBC: 542,045.640 oz

 

 

 

 

 

 

 

total withdrawals: 971,862.584  oz

we had 0  adjustment

 

 

total dealer silver:  83.999 million

total dealer + customer silver:  291.561 million oz

The total number of notices filed today for the SEPTEMBER 2018. contract month is represented by 28 contract(s) FOR 140,000 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 6934 x 5,000 oz = 34,670,000 oz to which we add the difference between the open interest for the front month of SEPTEMBER. (983) and the number of notices served upon today (28 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the SEPT/2018 contract month: 6934(notices served so far)x 5000 oz + OI for front month of SEPTEMBER(983) -number of notices served upon today (28)x 5000 oz equals 39,445,000 oz of silver standing for the SEPT contract month.  This is a huge number of oz standing!!

We gained 410 contracts or an additional 2,050,000 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:  100,791 CONTRACTS   

 

 

CONFIRMED VOLUME FOR YESTERDAY: 88,821CONTRACTS..

 

 

YESTERDAY’S CONFIRMED VOLUME OF 88,821 CONTRACTS EQUATES TO 444 million OZ  OR 63.4% OF ANNUAL GLOBAL PRODUCTION OF SILVER

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

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

end

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV RISES TO -3.48% (SEPT.21/2018)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -1.70% to NAV (SEPT 21/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -3.48%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 12.14/TRADING 11.68/DISCOUNT 3.85.

END

And now the Gold inventory at the GLD/

SEPT 21/WITH GOLD DOWN $9.90/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 742.23 TONNES

SEPT 20/WITH GOLD DOWN $2.80/A SMALL WITHDRAWAL OF .3 TONNES AND THIS IS TO PAY FOR FEES/742.23 TONNES

SEPT 18/WITH GOLD DOWN $3.00: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 742.53 TONNES

SEPT 17/WITH GOLD UP $5.20: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 742.53 TONNES

SEPT 14/WITH GOLD DOWN $6.95 TODAY, ANOTHER HUGE 2.65 TONNES OF GOLD WAS REMOVED FROM INVENTORY AT THE GLD..PRETTY SOON WE WILL HAVE ZERO INVENTORY/INVENTORY RESTS AT 742.53 TONNES

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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

SEPT 21/2018/ Inventory rests tonight at 742.23 tonnes

*IN LAST 461 TRADING DAYS: 188,48 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 361 TRADING DAYS: A NET 31.94 TONNES HAVE NOW BEEN REMOVED FROM GLD INVENTORY.

 

end

 

Now the SLV Inventory/

SEPT 21/WITH SILVER UP 2 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 334.973 MILLION OZ/

SEPT 20/WITH SILVER UP 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 334.973 MILLION OZ/

SEPT 18/WITH SILVER DOWN 4 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 334.973 MILLION OZ/

SEPT 17/WITH SILVER UP 8 CENTS TODAY:NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 334.973 MILLION OZ/

SEPT 14/WITH SILVER DOWN 11 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 334.973 MILLION OZ/

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/

 

 

 

SEPT 21/2018:

Inventory 334.973 MILLION OZ

 

6 Month MM GOFO 2.07/ and libor 6 month duration 2.58

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

G0FO+ 2.07

 

libor 2.58 FOR 6 MONTHS/

GOLD LENDING RATE: .51%

XXXXXXXX

12 Month MM GOFO
+ 2.49%

LIBOR FOR 12 MONTH DURATION: 2.90

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.41

end

At 3:30 pm we receive a report which has no value but for completeness sake, I will provide it for you

The EFP issuance and transfers distort the data

COT Gold, Silver and US Dollar Index Report – September 21, 2018
 — Published: Friday, 21 September 2018 | Print  | Comment – New!

 

Gold COT Report – Futures
Large Speculators Commercial Total
Long Short Spreading Long Short Long Short
197,797 208,641 56,478 171,293 169,602 425,568 434,721
Change from Prior Reporting Period
-570 2,684 2,453 2,101 423 3,984 5,560
Traders
168 104 78 55 51 259 198
Small Speculators   © GoldSeek.com
Long Short Open Interest
43,868 34,715 469,436
-3,998 -5,574 -14
non reportable positions Change from the previous reporting period
COT Gold Report – Positions as of Tuesday, September 18, 2018

OUR LARGE SPECULATORS

those large speculators who have been long in gold pitched (transferred) 570 contracts from their long side

those large speculators who have been short in gold added 2684 contracts from their short side

OUR COMMERCIALS

those commercials who have been long in gold added 2101 contracts to their long side

those commercials who have been short in gold added 434 contracts to their short side

 

OUR SMALL SPECULATORS

those small specs who have been long in gold pitched (transferred) 3998 contracts from their long side

those small specs who have been short in gold covered (transferred) 5574 contracts from their short side.

Commercials continue to go net long and speculators net short and yet they continue to raid/?

 

silver cot

Silver COT Report: Futures
Large Speculators Commercial
Long Short Spreading Long Short
80,024 105,540 15,371 77,147 68,313
-1,071 -2,958 -2,968 -993 2,547
Traders
113 66 43 41 33
Small Speculators Open Interest Total
Long Short 205,469 Long Short
32,927 16,245 172,542 189,224
1,532 -121 -3,500 -5,032 -3,379
non reportable positions Positions as of: 176 124
Tuesday, September 18, 2018   ©

OUR LARGE SPECULATORS

those large specs that have been long in silver pitched (transferred) 1071 contracts from their long side

those large specs that have been short in silver covered (transferred) 2958 contracts from their short side.

OUR COMMERCIALS

those commercials who have been long in silver pitched (transferred) 993 contracts from their long side

those commercials who have been short in silver added 2547 contracts from their short side

OUR SMALL SPECULATORS

those small specs that have been long in silver added 1532 contracts to their long side

those small specs that have been short in silver covered (transferred) 121 contracts from their short side.

Conclusions;

specs still net short and commercials net long

 

 

Major gold/silver trading /commentaries for FRIDAY

GOLDCORE/BLOG/MARK O’BYRNE.

 

off today

 

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

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

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

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

(Andrew Maguire)

 Dear Harvey Organ,

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

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

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

https://t.me/kinesismoney

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

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

Kinesis Webinar

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

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

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

Kind Regards,

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

 

The following is self explanatory

(courtesy GATA/Chris Powell and Harvey Organ)

GATA asks bank regulator to check risks of gold

futures maneuver

 Section: 

12:21p ET Sunday, June 10, 2018

Dear Friend of GATA and Gold:

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

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

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

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

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

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

* * *

May 5, 2018

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

Dear Comptroller Otting:

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

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

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

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

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

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

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

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

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

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

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

Sincerely,

CHRIS POWELL
Secretary/Treasurer

HARVEY ORGAN
Consultant

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

end

Finally, they replied and it was a complete brush off

(courtesy zerohedge)

Currency comptroller brushes off GATA’s inquiry on

gold, silver EFPs

 Section: 

11:35a ET Friday, August 10, 2018

Dear Friend of GATA and Gold:

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

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

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

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

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

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

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

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

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

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

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

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

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

END

Another heist in the cryptocurrency space and again it is Japan with a huge $60 million stolen

(courtesy Reuters/GATA)

 

Japan hit by another cryptocurrency heist, with $60

million stolen

 Section: 

By Taiga Uranak
Reuters
Wednesday, September 20, 2018

TOKYO — Japanese cryptocurrency firm Tech Bureau Corp. said about $60 million in digital currencies were stolen from its exchange, highlighting the industry’s vulnerability despite recent efforts by authorities to make it more secure.

Tech Bureau, which had already been slapped with two business improvement orders by regulators this year, said its Zaif exchange was hacked over a two-hour period on Sept. 14. It detected server problems on Sept. 17, confirmed the hack the following day, and notified authorities, the exchange said today. …

… For the remainder of the report:

https://www.reuters.com/article/us-crypto-currencies-japan-cybercrime/ja…

END

In light of the market rigging and the CFTC conviction of these individuals, Chris Powell pens a great question to them:

(courtesy Chris Powell/GATA)

 

GATA asks CFTC if market rigging by U.S. govt. is legal

 Section: 

12:56p ET Friday, September 21, 2018

Dear Friend of GATA and Gold:

The U.S. Commodity Futures Trading Commission this week announced it has imposed penalties on two futures traders for attempting to manipulate the gold market and other markets with “spoofing” trades:

https://www.cftc.gov/PressRoom/PressReleases/7797-18

https://www.cftc.gov/PressRoom/PressReleases/7796-18

In response, GATA is asking the commission whether its jurisdiction covers futures market manipulation by the U.S. government or brokers acting for the U.S. government, or whether such manipulation is authorized by law, like the Gold Reserve Act of 1934 as amended in the 1970s, which established the U.S. Treasury Department’s Exchange Stabilization Fund:

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

gold trading early this morning: gold flash crashes as crooks release a paper $1.2 billion gold short in the December contract.  We are so thankful that we have regulators watching over us

The letter containing GATA’s inquiry to the CFTC is posted in PDF format here:

http://www.gata.org/files/GATALetterCFTC-09-21-2018.pdf

U.S. citizens can assist this endeavor by asking their members of Congress to urge the CFTC to reply promptly to GATA’s inquiry.

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

end

Another great letter appealing to the new Shareholder’s gold countil

 

(courtesy Chris Powell)

GATA appeals to the new Shareholders Gold Council

 Section: 

12:37p ET Friday, September 21, 2018

Dear Friend of GATA and Gold:

Now that the Shareholders Gold Council has formally gotten started, according to the Bloomberg News report dispatched to you a little while ago —

http://www.gata.org/node/18509

GATA today is appealing to the council’s founder, investment fund manager John Paulson, to allow GATA to make a presentation to the council about the longstanding policy of Western governments and central banks to intervene in the gold market surreptitiously to suppress the monetary metal’s price.

The council represents a lot of influence in the monetary metals mining business and the financial markets and might do much to help expose and end the market manipulation.

Of course the World Gold Council ignores this issue and seems to exist mainly so that there might never be a world gold council. Maybe the Shareholders Gold Council can be more relevant both to investors in the monetary metals and to the cause of free markets and transparent and limited government.

GATA’s appeal to the Shareholders Gold Council is posted in PDF format here:

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

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

(courtesy Chris Powell)

 

Gold Flash-Crashes Below $1200, Over A Billion

Notional Puked In 1 Minute

As the dollar suddenly spiked this morning, someone puked over $1.2 billion notional gold futures in the space of one minute, sending the precious metal back below $1200…

In the minute ended at 0845ET, more than 10,000 December gold futures contracts, each representing 100 ounces,changed hands on the Comex in New York. That amounts to approximately $1.2 billion notional of the precious metal. That was about 30 times the 100-day average for that time of day.

And as goes gold, so goes silver…

But both are now being bid back up, gold back above $1200.

end
An excellent commentary on the on goings of the Petroyuan oil contract in Shanghai and how this will eventually cause gold to rise: Shanghai also engages the use of EFP’s but on very stringent rules.  Are holders of yuan waiting to turn in their EFP yuan for gold?
a must read…
(courtesy Nicholas Biezanek)

Trying to Interpret The Petroyuan Data and Possible Linkage to a Rumour of a Forthcoming 1,000 Tonne Physical Gold Call on the SGE.

Nicholas Biezanek

Two petroyuan contracts have now expired and all that virtually Yuan 13 trillion of petroyuan turnover has appeared to have achieved since 26th March 2018 is a very counter intuitive 10% decline in the RMB/USD cross rate. Is the petroyuan a monumental ‘nothing burger’, as most Western commentators predicted? Remember 2017, when all that was required to keep precious metals contained was an elevated COMEX O/I count; in 2018 alone, more than five thousand, five hundred tonnes of EFP gold transfers have been added to the arsenal of suppressive techniques and silver EFT transfers, in less than nine months, exceed more than three full years of annual mine production. Maybe a bit of patience is required instead of our ingrained expectations of instantaneous results in order to witness any ‘changing of the guard’ that this gargantuan ‘game changer’, the petroyuan, will inevitably engineer. All I know about the petroyuan is self-taught and there is precious little information available on the internet that adds to this understanding. Indeed my principal interest relates to the impact of any additional Yuan (RMB) accruing to foreign entities in China that might eventually seek a home on the Shanghai Gold Exchange. In particular, I heard a rumour that perhaps a thousand tonnes of gold could seek to exit the Shanghai Gold Exchange in December 2018.Below I argue that this could certainly be attributable to petroyuan dealings. There are 15 major sections in the rules and regulations of the Shanghai International Energy Exchange and the section on Delivery Rules has 162 individual articles and the section on Clearing Rules has 93 such articles-it is a complex and daunting environment, and any emails requesting clarification are returned with cryptic ‘spam type’ messages.

China’s Daily Importation of 7.6 Million Barrels of Crude Oil

In the days leading up to the start of petroyuan trading, some commentators were seeking to disparage the viability of its trading framework by postulating questions as to delivery capacity and storage feasibility. Please absorb the data in the following internet extract.( China had the infrastructure already in place to accommodate crude oil importation of at least 7.6 million barrels per day irrespective of the trading platform that determined the terms and conditions of such trade.)

“’Ageing fields and high production costs dragged down China’s domestic crude oil production in January and February 2018, on a par with the lowest level on record according to Chinese government data.

In the first two months of 2018, China’s crude oil production dropped by 1.9 percent from the same period last year to average 3.76 million barrels per day, according to Reuters calculations of data by China’s National Bureau of Statistics. The production level in January and February equaled the lowest on record since at least 2011, a level which was hit again in August last year.

Much of the production decline so far this year could be attributed to the drop in production of China’s largest oil producer, China National Petroleum Corp (CNPC), whose production fell by 1.6 percent year on year, a source with direct knowledge of the matter told Reuters on Wednesday.

CNPC has reduced production at some oil fields and expects domestic production to gradually decline, according to the source.

China is the world’s top crude oil consumer and importer. For each day in 2016, China consumed 11.5 million barrels of oil, over a half million barrel increase from 2015, according to the annual report released by China Petroleum and Chemical Industry Association (CPCIA).Jul 25, 2017.’’

Therefore it can be seen that divorced from the commencement of any futures trading platform, China has a preexisting requirement to import at least 7.6 million barrels of oil per day. Here is another independent extract that corroborates this number.

For 2016, China imported in the neighborhood of 7.6 million barrels of crude oil per day. The top nine leading exporters of crude to China for the same period are as follows:

Country

Percent of Total Imports

Russia

14.5%

Saudi Arabia

13.3%

Angola

11.9%

Oman

9.6%

Iraq

9.1%

Iran

8.0%

Brazil

5.2%

Venezuela

3.9%

United Arab Emirates

3.3%

Most of the above countries produce medium sour crude oil, which is the main umbrella classification that is stipulated in the Shanghai International Energy Exchange specifications. These precise classifications can be amended by ‘ad hoc’ directives but, if China is already accommodating imports from all the above listed countries, then presumably there are no major compatibility issues with China’s very extensive refining capacity.

How many countries in the above list are now still firmly entrenched as loyal, wretched vassals of the US hegemony? In a public article released this month (Global Crisis Hot Spots and PressurePoints-an absolute must read), Dr. Jim Willie states that the Saudis are already accepting RMB as oil payment by China. If even the Saudis are moving East, then is it at all feasible to assume that any of the countries in the above list might trade petroyuan futures but then revert to the legacy petrodollar platform as the basis for spot trade in USDs.

It seems as though the aggressive promotion of this alternative Shanghai petroyuan platform is a major strategic objective of America, since it has recently sought to drive Iran 100% into close alliances with China and Russia in order merely to survive. On 4th November ,inter alia, the following will apply: The National Iranian Oil Company (NIOC) will also see sanctions along with petroleum-related transactions that include the purchase of petroleum, petroleum products, and petrochemical products from Iran. The USA’s simultaneous assault on all of Russia, China, and Turkey etc. receives a lot of publicity but the garrote being now tightened on Iran certainly precludes any USDs being a medium of exchange in current and future trading of Iranian oil. The chances of any Sino/Russo trade currently or in future being conducted in USDs is also certainly just about zero. Only this morning came the following announcement: “The US has imposed sanctions on the Chinese military over its purchasing of Russian military jets and surface-to-air missiles. It says such purchases contravene US sanctions on Moscow introduced over Russian actions in Ukraine and alleged interference in US politics. China recently bought 10 Russian Sukhoi Su-35 fighter jets and S-400 missiles.’

Current Data on Petroyuan Volumes

Here is a table depicting the spectacular rise of trading in the petroyaun framework up to 21st September 2018..( There are still four trading days left in September 2018-the 24th September 2018 is a Chinese public holiday).

Shanghai Energy Exchange

YUAN

March (from 26th ) 2018

114,040,764,200

April-SC1809 2018

533,735,069,200

May -SC1809 2018

1,764,654,402,200

June-SC1809 2018

1,904,712,268,000

July-SC1809 2018

2,760,888,297,200

August- all contracts 2018

3,439,548,500,000

Sept -all contracts to 21st 2018

2,387,819,503,000

12,905,398,803,800

(Normally a contract’s last trading day is the last working day of the month, but 24th September is a public holiday and the first week of October is the traditional Chinese extended holiday; therefore the SC1810 contract closed on 20th September 2018 to allow for the mandatory 5 day settling period for the SC1810 before this forthcoming extended holiday.)

We have now witnessed two contract expirations. The inaugural SC1809 closed on 31st August 2018 with an open interest of just 1,202 contracts (at 1,000 barrels per contract) and then the SC1810 expired yesterday with an open interest of just 288 contracts (at 1,000 barrels per contract). Currently just about all trading volume is focused on the SC1812 (last trading day 30th November 2018) and as of 21st September 2018, the open interest currently stands at 43,742 contracts, but then there is a still a relatively long way to go until closure on 30th November 2018.

Exchange for Physical Contracts (EFPs) on the Shanghai International Energy Exchange

The followers of Harvey Organ’s work will know that, in respect of the COMEX/LBMA, EFP contracts embody all the most corrupt, opaque and criminally manipulative characteristics of naked short paper gold/silver trading and absolutely no one has a clue as to what is really transpiring. It is the complete opposite in respect of the Shanghai International Energy Exchange and the rules for Exchange for Physical Contracts are spelt out in detail in the section relating to Delivery Rules, chapter 3, articles 19 to 33. Article 19 describes the basic framework:

Article 19: The exchange of futures for physicals, or the EFP, is the process where the buyers and the sellers who hold opposite positions of a futures contract expiring in the same month reach an agreement through negotiation to, upon approval of the Exchange, tender a notice of EFP to have their respective positions in such contract closed out by the Exchange at the price prescribed by the Exchange, and exchange, at the price mutually agreed upon, the warrant of the underlying commodity which has a quantity equivalent to and is identical to or similar with the underlying commodity of the futures contract.

Where is all this leading? Let us now try and unpack these petroyuan trading volumes as recorded above. A peculiarity of petroyuan data is that it is ‘double sided counted’ (presumably each leg of a contract is measured independently) so consequently the petroyuan turnover above must be halved for the purposes of any further analysis and then an average Yuan cost of 520 per barrel has been assumed:

Total Turnover

12,905,398,803,800

Barrels traded up to 21st Sep 2018

12,409,037,311

China imports about 7.6 million barrels of oil per day, so just 70 days of oil imports is equal to about Yuan 270 billion being the equivalent of 1,000 tonnes of gold. How probable is it that the Shanghai International Energy Exchange has already traded upwards of 12.4 billion barrels but then only 1,490,000 barrels, being an almost imperceptible 0.012% of trading volume has hitherto stood for delivery and all other positions have been settled so that there is a consequent necessary reversion to legacy petrodollar platforms to satisfy China’s appetite for 7.6 million barrels of oil per day? Indeed China’s total crude oil importation requirements for the six months from April to September 2018 would be less than 1.4 billion barrels and this is no more than 11% of the volume traded to date on the petroyuan platform. Just revisit the list above of China’s principal trading partners for oil imports. I don’t think that it is too far-fetched to postulate that much of China’s recent oil imports could have been effected by exchange for physical contracts under the umbrella of the petroyuan framework. If my postulation has any kind of solid basis, then China’s oil trading partners could be amassing substantial hoards of Yuan. The convertibility of Yuan into gold on the SGE has always been a concept inextricably linked to the petroyuan platform. Additionally the concept of a gold backed trade note may well come into play in the not too distant future as part of a forthcoming ‘reset’, whereby an alternative to fiat currency is introduced into global trade as a more sustainable and viable foundation for stable money to replace the current fiat global currency regime that the USA has so abused.( Refer again to the aforementioned article of Dr. Jim Willie-the emergence of a gold trade note has featured prominently in Jim Willie’s forecasts for some time now and his record of correct forecasting is very formidable). The only (minimum) figures for both Chinese and Russian gold reserves that make any sense within the context of historical reports, mining statistics of local production that is never exported and more recent ‘West to East’ flows of rerefined physical gold are 30,000 tonnes of gold reserves in respect of each individual country. If, on the other hand, you are confident that the serial, annual creation of more than two trillion fiat USDs (in addition to 14 trillion USDs created at the time of the Lehman crisis plus the additional 21 trillion USDs of arcane budget appropriations uncovered by Mark Skidmore) is a sustainable global model that the East will accept in perpetuity, then there is nothing to see here in my ramblings. I am not sure there is much middle ground.

If you are still confident shorting paper gold in such circumstances, good luck. After all the COMEX does have 4 tonnes of registered gold, so what could possibly go wrong? If, on the other hand, my postulations are on the right track, since the commencement of the petroyuan contract, the exporters to China of its known physical oil import requirements could have amassed sufficient Yuan by 30th November to purchase up to 3,000 tonnes of gold on the SGE. Are you currently naked shorting paper gold without absolute certainty as to the identity of the counter party holding ‘EFP claims’ of 5,516 tonnes on the LBMA? If not, could anybody be that brain dead! It would be a bit ironic if legitimate and rule based EFPs on the Shanghai International Energy Exchange played a part in the unraveling of the gargantuan LBMA/ EFP fraud* currently in play.

(* I meticulously look at the LBMA’s own disclosures of loco London precious metal vault holdings, when such are disseminated three months in arrears and these are metronomically constant in the case of both gold and silver, after adjustment for separately disclosed BOE holdings and custodial GLD/SLV holdings. Therefore these ‘EFP’ transfers, since inception, have involved absolutely no delivery of physical metal yet a plethora of regulators refuse even to entertain queries as to the nature of an LBMA/COMEX ‘EFP’ and so no one has any clue as to what is going on; moreover allegations of serial uber criminality are never refuted, never ever-refer to the work of Harvey Organ for more details).

end

A lot of food for thought on the silver/gold manipulation story from Ted Butler tonight

 

Ted Butler….

Constructive Suggestion

Theodore Butler | September 21, 2018 – 11:56am

Shortly after I posted publicly last week’s article, “Is the COT Report Still Valid?,” commentary on my article was posted by Chris Powell, from GATA, suggesting that I consider the possibility that JPMorgan may be operating in the silver and gold markets as an agent under orders from the US Government and not as a principal for its own account (as I believe). I want to thank Chris for offering his input and I’m not kidding when I say it’s much better for an article to generate interest than to be ignored.

Since I know this is a widely-held opinion, namely, that the US Government is behind the silver and gold manipulation, ostensibly to defend the dollar, I have always considered this to be a possibility and believe I have written about it previously. Since there is no question that the regulators have continuously evaded allegations of wrongdoing by JPMorgan in the silver and gold markets, that’s reason enough to admit to the possibility of US Government involvement.

Throw in the fact that the US Government arranged the pivotal takeover of Bear Stearns by JPMorgan, thrusting JPM into the role of the biggest COMEX gold and silver short in early 2008. It’s easy to suspect some level of governmental involvement. On the other hand, I’m more persuaded that JPMorgan is acting on its own behalf in its silver and gold activities. No doubt that JPMorgan extracted some type of “free get out of jail card” on its takeover of Bear Stearns and that has accounted for the CFTC turning a blind eye towards JPM’s corrupt behavior in silver and gold. However, that’s very different from the US government orchestrating things. What things?

Well, for starters, how about JPMorgan never taking a loss, only profits in all its COMEX silver and gold dealings over the past decade. And for the bank amassing 750 million ounces of physical silver and 20 million ounces of gold over the past 7.5 years at artificially- depressed prices. Since when did the US Government become a profit-motivated precious metals trader and hoarder? It’s not what they do

Specific public allegations of criminal activity directed at public companies, particularly financial institutions, like banks, are quite rare. Retaliation is swift and harsh. How many thousands of lawyers does JPM have at its command to attack any claims of wrongdoing? I have frequently called JPMorgan a stone cold crook in its silver and gold dealings. And truth be told, I was quite frightened of the consequences of doing so when I first started to make such allegations ten years ago, and sending these complaints to them. That’s because it is unheard of a large public company of any type to ignore complaints alleging criminal activity. After ten years, any fears I had have disappeared. The only reason JPM and the CME have not responded is because they are both guilty as charged. Therefore, I’d like to suggest to GATA and others to press the issue.

To my knowledge, GATA has three board members, Chris Powell, Bill Murphy and Ed Steer. Ed has already become fully convinced that JPMorgan is the chief player in the silver (and gold) manipulation, as anyone who reads his daily newsletter will attest. Bill now talks more about silver and JPMorgan than he does about gold, a marked reversal from the past. In the most constructive sense possible, I’d like to suggest that GATA go all the way and focus on JPMorgan’s activities as its main thrust. After all, that seems to be the direction it is headed anyway. In practical terms, it will be much easier to crack JPMorgan, than the US Government.

One final thought that occurred to me after I published these comments to subscribers. I have traced the COMEX silver manipulation from the mid-1980’s. Ronald Reagan was president when this scam started and we’ve had five different presidents from either political party since then. If the silver manipulation was a coordinated US Government run operation, it would involve a remarkable string of inside operatives over the past three decades. When I look at daily developments from Washington DC, I am struck by the extraordinary amount of leaking on all issues from both sides of the aisle. That makes it hard for me to believe that a three-decade secret on such an important issue, precious metals manipulation, could be preserved by the same people who can’t seem to keep confidential anything else. Again, my point is not whether the US Government is using JPMorgan to manipulate silver and gold or not, but that JPM is involved in either event. As a result, JPMorgan should be the focal point.

Ted Butler
September 21, 2018

______________________________________________________________________________________________________________________________________________________

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

i) Chinese yuan vs USA dollar/CLOSED UP TO 6.8445/HUGE DEVALUATION FOR THE PAST FOUR WEEKS STOPS/CHINESE COMING TO USA FOR TRADE TALKS IN NOVEMBER //OFFSHORE YUAN:  6.8385   /shanghai bourse CLOSED UP 68.24 POINTS OR 2.50% /HANG SANG CLOSED UP 475.91 POINTS OR 1.73%
2. Nikkei closed UP 195.00 POINTS OR 0.82%/USA: YEN RISES TO 112.67/

3. Europe stocks OPENED  IN THE GREEN EXCEPT SPAIN 

 

 

/USA dollar index RISES TO 94.04/Euro FALLS TO 1.1768

3b Japan 10 year bond yield: RISES TO. +.13/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 112.22/ 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:: 70,83  and Brent: 79.55

3f Gold DOWN/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 +.460%/Italian 10 yr bond yield UP to 2.85% /SPAIN 10 YR BOND YIELD UP TO 1.50%

3j Greek 10 year bond yield RISES TO : 4.07

3k Gold at $1204.70 silver at:14.37   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 33/100 in roubles/dollar) 66.64

3m oil into the 71 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 112.67DESTROYING 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 0.9558 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1247 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now POSITIVE territory with the 10 year FALLING to +0.46%

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 3.07% early this morning. Thirty year rate at 3.20%

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

6.  TURKISH LIRA:  UP  TO 6.2782

 

Euphoria Grips Markets As Traders Brace For Quad

Witching, Huge Index Rebalance

Global equity markets rallied into the last day of the week, with euphoric sessions in Asia and Europe pushing U.S. equity futures through overnight highs and into new all time highs, amid a trader focus on today’s quadruple witching and huge S&P rebalancing.

US traders braced for a surge in volume on “quad-witching” day that will see stock index futures, stock index options, stock options, and single stock futures expire…

… on top of the largest revision to the Global Industry Classification Standard since 1999 as Facebook, Google and others exit the Info-Tech sector and move to the newly created Communication Services sector, which replaces the venerable Telecom sector.

The MSCI All-Country World Index was poised for a seven-month high after its strongest week since May, as stocks across Asia capped their best two-week rally since February. China’s Shanghai Composite soared 2.5% amid receding trade war fears, despite a flimsy start after the PBoC refrained from liquidity operations and dramatically slowed its net liquidity efforts for the week.

Japan’s Topix Index closed at the highest in four months as the yen continued to slide despite the BOJ’s announcement to further taper its bond buys in the 25+ year bucket, which bear steepened the JGB curve, and sent the yield on 10-year JGB bonds up 1.5 bps to 0.13%, the highest level since Aug. 3. Morgan Stanley revised upward its USD/JPY forecast through to mid-2019, citing continued strength in U.S. asset prices and rising bond yields in developed markets.

European markets ignored poor PMI data, and were green across the board, as the Stoxx Europe 600 Index headed for its best week in six months rising 2% from last Friday, led by the beaten-down mining and auto sectors, while banks have also been outperformers. Those sectors have been increasingly immune to the global trade noise, which is a hint that investors have started to price in the impact of tariffs and are now seeing upside risks if a trade deal is signed. Europe will see some index rebalancing today as well, as Dassault Systemes will replace Solvay in the CAC40, Wirecard will replace Commerzbank in the DAX, while Linde Tendered, Amadeus IT and Kering will replace Saint-Gobain, E.ON and Deutsche Bank in the Euro Stoxx 50.

Still, storm clouds may be gathering because as Bloomberg notes, there have been quite a few profit warnings in Germany since August, including Henkel, Continental, K+S, Zalando, Ceconomy, Suedzucker, Tom Tailor to name a few.

Amid the bubbly stock market, further political drama erupted in Europe, with French president Macron branding Brexiteers as “liars” and ongoing fighting inside the Italian coalition government over the next budget. But the noise did not stop the pound and the euro from flying. With the dollar weakening in recent days, the correlation between the Euro Stoxx 50 and the euro reaches its highest level in two years.

Even as stocks soared, core European bonds inched higher after the latest PMI data showed euro-area expansion edged lower in September as manufacturing export orders slumped to the weakest in five years, though the euro clung onto gains to head for a three-month high. Europe’s September Composite PMI showed misses across the board, with France 53.6 vs 54.6 est; Germany 55.3 vs 55.4 est; Eurozone 54.2 vs 54.5 est; Markit noted the near stagnation of exports dragging manufacturing slower, and despite a buoyant services sector, risks to growth appear tilted to the downside.

View image on TwitterView image on TwitterView image on Twitter

IHS Markit PMI™@IHSMarkitPMI

Flash Eurozone PMI drops to 4-mo low of 54.2 (vs 54.5 in Aug), slowdown driven by weakest growth in manufacturing sector since May 16, while goods exports declined for the first time in over 5 years. More here: http://ihsmark.it/uaFD30lUGEG

Italian bonds climbed as Finance Minister Giovanni Tria prepares a draft budget.

The greenback whipsawed before edging higher, but remained on course for its worst weekly performance in two months as measured by the Bloomberg Dollar Spot Index. The euro briefly climbed above $1.18 as medium-term accounts closed shorts, while fast-money names took profit on pound longs.

Elsewhere in FX, the euro initially edged up against the dollar although it has since dropped to session lows after a disappointing round of Manufacturing and Service PMI data, while the pound weakened against pairs after European Union leaders bluntly rejected U.K. Prime Minister Theresa May’s “chequers” Brexit blueprint and warned that time is running out for striking a deal; the Swiss franc rallied a second day against the dollar. In Japan, the yen slid, touching a two-month low as investors looked past the U.S.-China trade war, boosting stocks and sapping demand for haven assets; Japan’s government bond yields advanced after the Bank of Japan signaled it is persisting with stealth tapering by cutting purchases of bonds due in more than 25 years. The Aussie touched a three-week high, supported by the improving risk sentiment and as S&P Global Ratings raised the outlook on Australia’s AAA credit rating to stable from negative

US 10Y yields traded north of 3.00%, although so far all attempts to stage a firm break out above the key technical level of 3.10% have been unsuccessful.

In Brexit news, former UK Brexit Secretary Davis warned as many as 40 MPs could vote against PM May’s Chequers plan but added that Brexiteers are “reasonably terrified” of a Labor general election victory and that Downing Street is “banking on” this fear. UK PM May today will review the fallout of the Salzburg summit with her closest aides with suggestions from a senior minister that she could have to re-write her Chequers Brexit plan. However, BBC’s Kuenssberg tweeted that no announcement is to be made today by PM May, despite suggestions there would be.

Meanwhile, over in Italy Deputy PM and Five Star Leader Di Maio said he never wanted to bring down the government and reiterated being committed to keep election promiseswhile Italy’s League said it will govern with Five Star Movement for five years and will respect all the points in the government program. Di Maio later said new pension rules, flat tax and universal income will be part of the 2019 budge.

Elsewhere, crude oil headed for a second weekly advance, with Brent and WTI set to end the week positive by over 1% ahead of the OPEC meeting in Algeria this weekend, leading the Bloomberg Commodity Index to its highest level in more than a month. JP Morgan raised its Q4 Brent forecast by $22/bbl to $85/bbl.

Elsewhere on Friday, copper climbed to highest level in more than a month as metals extend their surge, with Goldman Sachs predicting raw materials will gain through the year-end as investors become used to trade war tensions and growth in major economies remains strong. Gold still holds strong above $1,200.

On today’s calendar, expected data include PMIs with no major company scheduled to report earnings.

Market Snapshot

  • S&P 500 futures up 0.1% to 2,943.00
  • STOXX Europe 600 up 0.5% to 384.69
  • MXAP up 1% to 166.04
  • MXAPJ up 1.2% to 529.29
  • Nikkei up 0.8% to 23,869.93
  • Topix up 0.9% to 1,804.02
  • Hang Seng Index up 1.7% to 27,953.58
  • Shanghai Composite up 2.5% to 2,797.49
  • Sensex down 1% to 36,762.09
  • Australia S&P/ASX 200 up 0.4% to 6,194.60
  • Kospi up 0.7% to 2,339.17
  • German 10Y yield fell 0.8 bps to 0.463%
  • Euro up 0.08% to $1.1786
  • Italian 10Y yield rose 2.9 bps to 2.521%
  • Spanish 10Y yield fell 0.7 bps to 1.504%
  • Brent futures up 0.8% to $79.35/bbl
  • Gold spot little changed at $1,207.87
  • U.S. Dollar Index little changed at 93.95

Top Overnight News from Bloomberg

  • Donald Trump continued to hit out at China days after announcing another round of tariffs. The Trump administration hasn’t put a process in place for companies to get exemptions from 10 percent tariffs it’s imposing on $200 billion of Chinese goods, unlike earlier rounds of the duties, four people familiar with the matter said
  • Japan’s 40-year yield climbed above 1 percent after the Bank of Japan cut buying of debt due in more than 25 years by 10 billion yen at its regular operation on Friday, the first reduction in the segment since July
  • Theresa May promised fresh plans to break the stalemate in Brexit negotiations after European Union leaders bluntly rejected her blueprint and warned that time is running out for striking a deal
  • Nafta talks have probably missed the latest in a string of deadlines, leaving all eyes on the U.S. over what will happen next
  • Oil retreated after U.S. President Trump resumed his criticism of OPEC, as the global benchmark crude flirted with $80-a-barrel earlier this week
  • Australia ratings outlook revised to stable from negative by S&P. Stable outlook reflects expectations that the general govt fiscal balance will return to surplus by the early 2020s, S&P Global Ratings says
  • U.K.’s Theresa May promised fresh plans to break the stalemate in Brexit negotiations
  • Hong Kong’s sleepy foreign- exchange market suddenly came to life on Friday, propelling the local dollar to its biggest gain in 15 years. In a city that keeps its currency on one of the world’s tightest leashes, swings greater than 0.4 percent have only happened three times since Hong Kong widened its trading band in 2005
  • A former Deutsche Bank AG trader who was responsible for submitting the company’s daily borrowing rates — combined with those of other banks to calculate the Libor benchmark — said he would often alter the figure at the request of other traders to benefit their own positions
  • GAM holding AG said it had begun paying out some investors as it proceeds with the wind-down of suspended star manager Tim Haywood’s funds, and plans to return more than 80 percent of the money to clients in certain funds in coming days
  • Euro-area expansion edged lower in September as manufacturing export orders slumped to the weakest in five years, according to IHS Markit’s composite Purchasing Managers Index which slowed to 54.2 in September, down from 54.5 in August

Asian equity markets traded higher as the region took impetus from the rally in US where the Nasdaq outperformed on a rebound in tech, while the S&P 500 and DJIA notched all-time highs. ASX 200 (+0.4%) and Nikkei 225 (+0.8%) were positive with Australia led by strength in miners following the recent upside in the metals complex, while the Japanese benchmark remained underpinned by a weaker currency and approached closer towards this year’s highs. Hang Seng (+1.7%) and Shanghai Comp. (+2.5%) both conformed to the heightened global risk appetite and markedly outperformed their peers, despite a flimsy start for mainland China after the PBoC refrained from liquidity operations and dramatically slowed its net liquidity efforts for the week. Finally, 10yr JGBs declined amid gains in stocks and after a reduction of the BoJ’s Rinban purchases of 25yr+ JGBs to JPY 50bln from JPY 60bln, which pushed the 20yr yield and 30yr yield to their highest since July 2017 and October 2017 respectively. PBoC skipped open market operations for a net weekly injection of CNY 60bln vs. CNY 330bln net injection last week. Japanese Economy Minister Motegi said they will hold a 2nd round of bilateral trade discussions with US in New York on Monday, while he added he wants a win-win outcome and doesn’t expect it to lead to FTA negotiations. Furthermore, Japanese Chief Cabinet Secretary Suga said PM Abe and US President Trump will meet for dinner on September 23rd and will hold a summit on September 26th.

Top Asian News

  • India Stock Market Rocked by Sudden Plunge in Financial Shares
  • Japan’s Long Bonds Join Global Selloff as BOJ Tapers Buying
  • Hong Kong Dollar Gone Wild: A 0.6% Move Shocks a Sleepy Market
  • Dewan Crashes as Much as 60% on Fear Default at Rival May Spread

European equities have started the day on the front foot, with the Eurostoxx 50+0.8% on the day, and setting the index up for a 2.7% climb this week, as trade concerns continue to ease. The FTSE MIB is todays outperformer, driven by Atlantia, who have  reportedly not had the Hochteif-Abertis acquisition next week quashed, despite suggestions it may be delayed by the Italian bridge disaster. Mining names are leading gains in the FTSE 100, with Rio Tinto, Glencore and Anglo American benefitting from higher metals prices. Just Eat are at the foot of the index on competition concerns after source reports suggested Uber is looking to take over Deliveroo.

Top European News

  • Euro Area Expansion Unexpectedly Slows on Trade War Turmoil
  • Italian Data Revision Gives Tria Final View for Populist Budget
  • Spain’s CaixaBank to Take $530 Million Charge on Repsol Sale
  • Denmark Says U.S. Won’t Take Drastic Steps Against Danske Bank
  • Putin’s Government Said to Fume After First Rate Hike Since 2014

In FX, the Euro extended and widespread gains for the single currency with early tests of 1.1800 vs the Greenback and 0.8925 vs the Pound before weaker than expected Eurozone preliminary PMIs (German manufacturing in particular) stymied the Eur’s advance. CHF/NZD/AUD – All firmer vs the Usd, as the DXY attempts to keep its head above key chart support (93.713 and 93.640) and in touch with the 94.000 handle, with the Franc now eyeing 0.9550, Kiwi hovering just below 0.6700 and Aud re-testing 0.7300 in wake of Moody’s reaffirming NZ’s AAA rating and maintaining a stable outlook after S&P’s upgraded its outlook for Australia overnight. In EM, The Rand continues to outperform or carry the recovery baton across the region after yesterday’s hawkish hold from the SARB, and the Zar is now eyeing the 14.2000 level flagged by the Central Bank vs the Usd with extra momentum derived from SA President Ramaphosa’s economic stimulus plan based on reallocating budget expenditure rather than ramping up spending.

In commodities, oil is in the green heading into the weekend, with Brent and WTI set to end the week positive by over 1% ahead of the OPEC meeting in Algeria this weekend. In energy newsflow JP Morgan raised their Q4 Brent forecast by USD 22/bbl to USD 63/bbl. Metals are generally higher, with the market benefitting from a marginally softer dollar and further dissipation of trade tensions. Gold is set for a 1.5% weekly rise in prices, its first weekly rise in four, and is up on the day. This comes despite Goldman Sachs revising down their gold price forecast to USD 1325/oz from USD 1450/oz. Copper is the largest benefactor of reduced trade tensions, with the industrial material up 2% on the day, and hitting a 6 week high, despite Barclays expecting copper prices to fall from USD 6,603/T in 2018 to USD 6,263/T in 2019

Looking at the day ahead, the main focus datawise should be the flash September PMIs in Europe and the US. The consensus expects no great change in the composite level for the Eurozone of 54.5 and likewise the manufacturing component while in the US only very modest increases in the manufacturing and services prints are expected. Away from that the final Q2 GDP revisions are due in France while in the UK August public sector net borrowing data is slated for release. A reminder also that today is quadruple witching day in the US which is when the quarterly expiration of futures and options occurs on the same  day – a four days a year phenomenon. It can usually lead to increased volumes and volatility in certain equity markets so something to be aware of.

US Event Calendar

  • 9:45am: Markit US Manufacturing PMI, est. 55, prior 54.7
  • Markit US Services PMI, est. 55, prior 54.8
  • Markit US Composite PMI, prior 54.7

DB’s Jim Reid concludes the overnight wrap

Risk is having a great time at the moment with the main highlight yesterday being another fresh all-time high for the S&P 500 (+0.78%) – the 19thtime this year we’ve closed with a new high but only the 5th since January. The NASDAQ (+0.98%) and DOW (+0.95%) were up even more with the latter also hitting a new high – the first since January.The VIX also hit an intraday low of 11.31 (closed at 11.80) while it was one-way traffic in Europe too with the STOXX 600 rallying +0.70% to notch up a fifth consecutive daily gain – the longest streak since early July. The DAX (+0.88%), CAC (+1.07%), FTSE MIB (+0.51%) and IBEX (+1.03%) also didn’t miss out and as you’ll see shortly it’s been a decent end to the week for Asia too.

In early US trading yesterday it looked like we might be talking about new highs for equities and a new YTD high for 10yr Treasury yields after they rose sharply to an intraday high of 3.094% (within two basis points of the May YTD and 7yr high) following a decent slug of US data releases. However, a rally back saw yields eventually pare all of that move to close unchanged at 3.064%. Yields in Europe also ended largely 1-2bps lower. There were no obvious headlines which drove the u-turn for yields but with 10yr Treasury yields up 26bps from the August lows, pullbacks are to be expected.

As we discussed yesterday this most recent sell-off in rates has not been accompanied by a sell-off in bond implied vol measures as it was with the selloffs in January/February and in May. I asked our rates strategist Francis Yared last night why vol hasn’t increased this time around and he believed it was because there hadn’t been any major change in inflation expectations as part of the move. It has been as much about removing some of the flight to quality premium that had been in the bond market over the summer due to Italy, Turkey, wider EM woes and the trade war. Indeed, since the recent trough on 25 August, real yields have driven 21bps of the 26bps move in Treasuries; inflation breakevens have moved only 5bps. Inflation remains the glue to stability in financial markets. Growth is strong (especially in the US) but the Fed can be measured, vol can stay relatively contained and risk firm if inflation remains subdued. We still think the risks on inflation are still asymmetric on the upside at the moment though. In terms of activity indicators all eyes next on today’s flash PMIs from around the world.

Back to yesterday, the factors which appeared to be contributing to the strong day for risk were a rebound for US tech, decent US data, no further escalation in the trade war, and in fact incrementally positive news from China with Premier Li Keqiang announcing that China would reduce tariffs on non-US imports from the majority of its trading partners, possibly as soon as next month. A weaker USD (-0.66%) and yet another strong day for EM FX (+0.71%) probably didn’t hurt either.
As mentioned at the top Asia is finishing the week on a high after taking its lead from Wall Street yesterday. The Nikkei (+1.03%) – which is up for the sixth consecutive session and five of which have seen gains of at least +0.96% – is joined by the Hang Seng (+0.93%), Shanghai Comp (+0.98%) and Kospi (+0.39%) in posting solid gains. Futures in the US are also up while in bonds long end JGBs have seen the biggest move (30y +3.8bps) after the BoJ trimmed purchases of bonds with maturities of more than 25 years by 10bn yen overnight. Meanwhile comments by President Trump on Fox News yesterday in which he said “it’s time to take a stand on China” has seemingly done little to dampen sentiment while the only data out overnight has come in Japan where core and corecore inflation printed in line with expectations at +0.9% yoy and +0.4% yoy respectively.

Touching on that US data that we highlighted above, the headline grabber was another new 48-year low (when population was a lot lower) for jobless claims at 201k (vs. 210k expected). Continuing claims also hit the lowest since 1973. Meanwhile the Philly Fed PMI hit 22.9 for September (vs. 18.0 expected) which was an 11pt rise from August. Helping risk (and perhaps stabilising bond yields) was the soft prices component while other components like new orders, shipment and employment all jumped. Later in the day, the August Conference Board Leading Index printed at 0.4%, modestly below expectations but still consistent with third quarter growth above 3% and consistent with our expectations. August home sales were flat mom, suggesting some softness, which is understandable given the 80bps rise in mortgage rates over the last year.

In Europe it was more strong data out of the UK which stole the show. Core retail sales printed +0.3% mom compared to expectations for a -0.2% mom decline. Prior month data was also revised up and as a reminder this follows better than expected CPI earlier this week and strong wages data last week. So we’ve seen a strong run of data from the UK of late and the latest has helped Sterling (+0.92% yesterday) to rise back above $1.32 for the first time since July. As for the latest Brexit headlines, the two sides continue to go back and forth with no immediate progress. Nevertheless, press reports suggested that EU officials have picked 17-18 November for another summit, at which they aim to agree on a formal Brexit arrangement before the transition period begins in March next year.

Speaking of Brexit, yesterday our UK economists published a special report diving into the impact on the UK economy from a crash Brexit. They calculate that UK growth would be around 4% cumulatively lower than under their baseline scenario by end-2020 with a two-year recession hitting in 2019 and 2020. With a large fiscal response (taken to be GBP 25bn of additional borrowing a year), the loss of output is less severe, with the UK economy growing 0.2% and 0.5% in 2019 and 2020 respectively. The team also make the point that the impact on the EU would be material. They expect the net cost of a crash Brexit to be around 0.5% of EU GDP. This would mean that their base case projection of EU growth (excluding the UK) would fall from 1.7% to 1.1% (y-o-y and rounded).

On the flip side our US economists were of the opinion that this time could be different and that Mr Powell could engineer the first ever soft US landing after unemployment has undershot the natural rate. This is especially relevant ahead of next week’s FOMC meeting, when officials will give their first macroeconomic projections for 2021. See here for their full report.

In Italy the only new news over the last day was a story about 5SM leader Di Maio threatening to quit the coalition over budget talks if it is not stretched to implement election campaign promises. Italian bonds sold off a bit after this, with 10y and 2y yields up 3.0 and 7.7bps, respectively.

Before we wrap up, in credit, Michal in my team published a one-pager with charts and commentary called “Credit Fund Flows – Europe Less Weak, US Still Strong” which provides the latest update on fund flows after rather brutal European IG outflows in the previous weekly period and puts them in the context of flows in other asset classes.

In terms of the day ahead the main focus datawise should be the flash September PMIs in Europe and the US. The consensus expects no great change in the composite level for the Eurozone of 54.5 and likewise the manufacturing component while in the US only very modest increases in the manufacturing and services prints are expected. Away from that the final Q2 GDP revisions are due in France while in the UK August public sector net borrowing data is slated for release. A reminder also that today is quadruple witching day in the US which is when the quarterly expiration of futures and options occurs on the same  day – a four days a year phenomenon. It can usually lead to increased volumes and volatility in certain equity markets so something to be aware of.

 

 

 

3. ASIAN AFFAIRS

i) FRIDAY MORNING/ THURSDAY NIGHT: Shanghai closed UP 68.24 POINTS OR 2.50%   /Hang Sang CLOSED UP 475.91 POINTS OR 1.73%/   / The Nikkei closed UP 195.00 POINTS OR 0.82%/ Australia’s all ordinaires CLOSED UP 0.45%  /Chinese yuan (ONSHORE) closed UP  at 6.8445 AS POBC STOPS  ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER/Oil DOWN to 70.83 dollars per barrel for WTI and 79.55 for Brent. Stocks in Europe OPENED GREEN//.  ONSHORE YUAN CLOSED UP AT 6.8445 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8387: 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

Last night a global bond sell off as yields rise.  In Japan the government is doing another tapering of its long term  (30 to 40 yr variety as supplies in this area narrow.
(courtesy zerohedge)

BOJ Unexpectedly “Stealth Tapers”, Sparking Japanese

Bond Selloff

The global bond rout accelerated overnight, when Japan surprised the market – which had been already on edge over the BOJ’s tightening intentions – with an announcement to further “stealth taper” its QE by trimming its buying of bonds due in more than 25 years by 10 billion yen ($88.9 million), from 60 to 50 billion yen at its regular operation on Friday, the bank’s first reduction in the segment since July.

The announcement bear-steepened the JGB curve, sending local long-term bond yields climbing to just shy of the highest levels since the central bank introduced its negative interest-rate policy in January 2016. The yield on 10-year JGB bonds climbed 1.5 bps to 0.13%, the highest level since Aug. 3, after trading 0.5bps before the BOJ announcement

The move was most pronounced among the longest duration Japanese bonds, as 30-year JGB yields rose 4bps to 0.89% hitting the highest level since October, while 40-year broke 1% level, rising as much as 4.5bps, and the highest since November. Futures volumes were running 200% of 10-day average through morning trade.

The “super-long” sector for Japanese bonds is favored by institutional investors, and especially pension funds who are seen as major buyers of 40-year debt, life insurers are among the largest holders of 20- and 30-year zones. And as Bloomberg notes, the 1 percent level for the super-long zones is seen as critical in prompting these long-term investors to shift some money back into the yen from higher-yielding overseas debt.

The 30-year yield rose four basis points to 0.89 percent, while that on 20-year debt increased 2.5 basis points to 0.645 percent.

JGB volatility spiked in July after the BOJ said it would tolerate a wider band of fluctuations in the benchmark yield and allow more flexibility in bond operations, allowing the 10Y yield to rise as high as 0.20% in an attempt to steepen the yield curve and provide some comfort for struggling local banks, even as it continues to push forward with its extraordinary monetary easing. On July 31, the BOJ said that it will allow the 10-year yield to deviate by as much as 0.2% points around zero percent.

Earlier this week, governor Kuroda on Wednesday kept the BOJ’s monetary policy unchanged and reaffirmed its commitment to reaching 2 percent inflation. Meanwhile, the re-election as party leader of PM Abe – who appointed Kuroda to head the BOJ in 2013 – will ultimately serve as an endorsement of his mix of monetary easing, regulatory reform and fiscal flexibility.

Yet even with the de facto tightening, the Japanese yen ignored Friday’s tapering move, dropping to a two-month low versus the dollar and the USDJPY rising as high as 112.87, as the Topix index rallied to the highest level since May in the footsteps of the furious rally that has gripped global stocks in recent days.

Commenting on the move, Mitsubishi UFJ’s Naomi Muguruma said that “the BOJ’s action is in line with the policy of conducting market operations more flexibly and is aimed at improving market activity, not at raising yield levels.The move also comes in light of a supply/demand balance as government bond issuance in the super-long zone is reduced this year.”

The rise in Japanese yields joined a global selloff in U.S. Treasuries, which overnight traded at 3.08% – one of the highest levels in recent years – and German bunds, ahead of another interest-rate hike by the Federal Reserve next week. The European Central Bank this month confirmed it will cut bond-buying in half next month and anticipates that new purchases will be halted by the end of the year.

While Friday’s surprising announcement will bolster speculation that the BOJ is seeking to intentionally guide yields higher, many investors do not see the advance in Japanese yields sustaining as they see authorities carrying on with the ultra-loose monetary policy indefinitely, after Prime Minister Shinzo Abe’s winning his third straight three-year term as head of the ruling Liberal Democratic Party on Thursday took him a step closer to becoming the country’s longest-serving premier.

“The BOJ’s move Friday confirmed market views that it will continue to gradually reduce buying in super-long maturities as it looks sustain its easy policy for a while with Abe government continuing,” said Akio Kato of Mitsubishi UFJ Kokusai Asset Management in Tokyo. “The longer-yields have reacted but their moves are contained within the levels of steepening anticipated under the BOJ’s latest tweaks.”

In an attempt to encourage curve steepening, earlier in the month the central bank raised purchases of short-tenor notes this month to offset a cut in frequency of operations for those maturities.

Still some said this may be too much ado about nothing:  “We shouldn’t read too much into each operation as it is conducted within the policy mandate” of being more flexible, said Muguruma of Mitsubishi UFJ.

 
END

3C CHINA

This could be far reaching!! China is furious after the USA sanctioned China for buying Russian weapons.

This will move China and Russia closer together

(courtesy zerohedge)

 

“The US Will Bear Responsibility”: China Furious After

US Sanctions Beijing For Buying Russian Weapons

It has been barely two weeks since China joined Russia in the “Vostok” war games, the largest display of Eurasian military might since 1981 when the Soviet Union was still a global superpower, and already the US has found an opening to try and drive a wedge between China and Russia, or at least express its displeasure with their increasingly close relationship.

Amid a simmering trade dispute between the US and China, the US has imposed sanctions on a branch of the Chinese military in retaliation for China’s recent purchase of Russian combat aircraft and anti-air surface to air missiles.

The sanctions are more of a nuisance than anything else, blocking China’s Equipment Development Department from participating in the dollar-based financial system and from doing business with US businesses, while also blocking the agency and its head, Li Shangfu, from applying for US export licenses.

Aircraft

As Reuters adds, the US State Department said it would immediately impose sanctions on China’s Equipment Development Department (EDD), the military branch responsible for weapons and equipment, and its director, Li Shangfu, for engaging in “significant transactions” with Rosoboronexport, Russia’s main arms exporter.

The sanctions are related to China’s purchase of 10 SU-35 combat aircraft in 2017 and S-400 surface-to-air missile system-related equipment in 2018, the State Department said. They block the Chinese agency, and Li, from applying for export licenses and participating in the U.S. financial system.

It also adds them to the Treasury Department’s list of specially designated individuals with whom Americans are barred from doing business.

The US also blacklisted another 33 people and entities associated with the Russian military and intelligence, adding them to a list under the 2017 law, known as the Countering America’s Adversaries Through Sanctions Act, or CAATSA.

As one might expect, the sanctions provoked an outraged response from China, which demanded that the US correct its “mistake” immediately or face “consequences”, per RT.

Beijing has threatened that Washington will face “consequences” if it doesn’t withdraw the recent batch of sanctions against China over military cooperation with Russia.

China’s Foreign Ministry did not mince words, saying Washington should immediately correct its “mistakes” before it’s too late.

China, predictably, was furious, with Foreign Ministry spokesman Geng Shuang telling reporters in Beijing that the move seriously harmed bilateral relations and military ties.

“China expresses strong indignation at these unreasonable actions by the U.S. side and has already lodged stern representations.”

“We strongly urge the U.S. side to immediately correct the mistake and rescind the so-called sanctions, otherwise the US side will necessarily bear responsibility for the consequences,” he said, without giving details.

Geng also insisted that the purchases were part of “normal” military exchanges between Russia and China – pushing back against the US as it seeks to dictate the terms of global trade between two geopolitical rivals.

China has “normal” military exchanges and cooperation with Russia, aimed at protecting regional peace and stability, which is not against international law or aimed at any third party, Geng added.

China will continue to work with Russia to promote strategic cooperation at an even higher level, he said.

But for all of China’s indignation, one anonymous US official told Reuters that the sanctions are actually targeted at Moscow, not Beijing.

One US administration official, who briefed reporters on condition of anonymity, said the sanctions imposed on the Chinese agency were aimed at Moscow, not Beijing or its military, despite an escalating trade war between the United States and China.

“The ultimate target of these sanctions is Russia. CAATSA sanctions in this context are not intended to undermine the defense capabilities of any particular country,” the official told reporters on a conference call.

“They are instead aimed at imposing costs upon Russia in response to its malign activities,” the official said.

Meanwhile, an analyst said the sanctions would do little to impede China’s military expansion, as Beijing only relies on Russia to “plug holes” in its military offerings.

Collin Koh, a security analyst at Singapore’s S Rajaratnam School of International Studies, said the sanctions would do little to counter the evolving research and development relationship between China and Russia.

One Russian lawmaker insisted that the sales would have “zero impact” on Russian arms sales.

In Moscow, Russian member of parliament Franz Klintsevich said the sanctions would not affect the S-400 and SU-35 deals.

“I am sure that these contracts will be executed in line with the schedule,” Klintsevich was quoted as saying by Russia’s Interfax news agency. “The possession of this military equipment is very important for China.”

Security analysts in Asia said the move was largely symbolic and would only push Moscow and Beijing closer together.

“The imposition of U.S. sanctions will have zero impact on Russian arms sales to China,” said Ian Storey, of Singapore’s ISEAS Yusof Ishak Institute.

Instead of discouraging their trading relationship, the sanctions will only push Russia and Beijing closer together.

Both countries are opposed to what they see as U.S. bullying and these kind of actions will just push Beijing and Moscow even closer together,” he said, adding that Moscow needed Chinese money and Beijing wanted advanced military technology.

The US has previously taken steps to sanction China’s military: For example, under President Obama, the US DOJ indicted several military intelligence operatives for hacking into the networks of US companies. President Trump issued the sanctions on Thursday, shortly after China announced that it would cut import levies for foreign goods (except for the US). But beyond the trade war and rising geopolitical tensions between the US and Russia, the subtext of Trump’s decision is clear: If you’re going to buy arms, buy them from a US defense contractor, or face the consequences. Yet, we’re sure the mainstream media will overlook this story since it clashes with the narrative that President Trump is merely a “pawn” of Russian President Vladimir Putin.

END

 

 

 

The former head of the POBC Zhou, an extremely clever individual claims that Chinese exporters cold soon ditch the USA markets for other markets

(courtesy zerohedge)

 

Ex-PBOC Head Warns China’s Exporters Could Soon Ditch The US

Former Chinese central bank governor Zhou Xiaochuan suggested on Wednesday that the direct impact on China of the trade war with the US “appears limited,” though it could quickly prompt China’s top exporters to pivot away from US markets. Xiaochuan, who left the bank in March after 15 years at the helm, told Reuters that China’s economy would be stable in 2018, with an expected growth rate of 6.5%, but needed to shift away from an economic model based on “urbanization,” or constructing ghost cities.

However, the main risk to the global economy is protectionism according to the ex-PBOC head. The costs of protectionism could hit the US the hardest, as Chinese firms are expected to withdraw from US markets and expand into other global economies:“I think it will force China to look at many other markets. So it’s not necessarily a good thing for the United States,” he said.

“I think the speed of (geographical) diversification can be relatively fast and beyond many people’s expectations.”

Reuters said Xiaochuan downplayed the idea that protectionism will severely affect economic growth in China, which he said had been estimated at 0.2-0.8% of GDP, but added that trade wars are creating uncertainties and could hurt business confidence.

Xiaochuan is right, in the latest US Economic Outlook via Barclays, US Economist Michael Gapen revealed that global growth momentum is already slowing.

Gapen also showed that global trade volume as a share of world GDP has likely reached a turning point into a protectionist era.

As a result of the peak in “hyper-globalization”, China is being forced to change its growth strategy after many decades. The economic driver of supplying Western markets with cheap goods and constructing ghost cities in China are over. “Whether this is reaching the peak or has peaked and maybe going down, we need to find some new economic growth driver,” said Xiaochuan.

That new “driver” could be the Belt and Road Initiative (BRI), China’s ambitious effort to promote regional cooperation and connectivity on a trans-continental scale via infrastructure-building projects covering Eurasia, various oceans, and parts of Africa (while saddling up neighboring nations with massive debt due to China).

The BRI will allow China to pivot away from the US markets and the dollar system by enabling the internationalization of the yuan (also known as the renminbi (RMB)) with countries along this new economic system.

Xiaochuan added that more global market participants might start using the yuan as China improves the exchange rate regime and the currency becomes more usable and convertible. “So if the other currencies have some problem, the global market may decide to use more RMB.”

As China exporters begin to pivot away from the US and focus on BRI countries, has Trump protectionist bluff backfired and alienated one of the country’s biggest trading partners?

end

4.EUROPEAN AFFAIRS

ITALY

Figures released by Eurostat seem to have suggested that a concentration of EU scientists and engineers left Italy for the UK and Germany

(courtesy zerohedge)

 

Italy Is Suffering The Worst ‘Brain-Drain’ In Europe

Figures released today by Eurostat have revealed a concentration of the European Union’s scientists and engineers in the UK and Germany.

As Statista’s Martin Armstrong points outcombined, the two countries are home to 38 percent while at the same time only accounting for 29 percent of the EU’s total population.

Infographic: Brain Drain Within the EU? | Statista

You will find more infographics at Statista

Conversely, France and Italy have 25 percent of the total population but only 16 percent of the scientists and engineers, but Italy stands out among the larger populations with just a 6% share of the EU’s scientists and engineers, while representing 12% of the EU’s total population – a serious brain drain.

end

DENMARK

This could be far reaching:  Dankse bank holds 1/3 of all deposits in Denmark and this scandal and all of the fines that will be leveled against the bank will be devastating and that could cost its coveted AAA rating

(courtesy zerohedge)

Danske Bank Scandal Could Cost Denmark Its ‘AAA’ Rating

Denmark has for decades maintained a reputation as one of Europe’s most cleanest and most credit-worthy countries. But that reputation now lies in tatters thanks to the widening scandal involving the country’s largest lender, Danske Bank, and allegations that it blithely aided shadowy criminals from the Soviet Union by helping them launder money through Danske’s branch in Estonia.

Danske

An internal audit published Wednesday by Danish law firm Bruun & Hjejle only exacerbated the situation by revealing that the potential for fraud was even larger than authorities initially believed – with a total of $234 billion in transactions now labeled “suspicious” by the bank. Denmark’s government, which is presently investigating the bank along with authorities in Estonia and the US, revealed that the bank is potentially facing as much as 4 billion kroner ($630 million) in fines, according to Bloomberg. That sum is many multiples of Estonia’s GDP.

Danske officials estimated at the time that they had done business with some 6,200 “suspicious” clients between 2007 and 2015, when the bulk of the alleged money laundering occurred.

That would be tantamount to the largest fine ever levied by Danish authorities, which is understandable, since the Danske scandal is one of the largest money laundering cases in European history. Bloomberg Intelligence estimates Danske may have to pay more than 1 billion euros ($1.2 billion) in total.

This could have a serious impact on the bank’s financial health, which could be hugely problematic for Danes because the bank holds one-third of all deposits in the country. Indeed, the scandal could have far-reaching ramifications for the entire Danish financial system and Danish companies as S&P has warned that the case might impact Denmark’s AAA credit score. Germany, Norway, the Netherlands, Switzerland, Sweden, Leichtenstein and Luxembourg also have AAA ratings from S&P in Europe.

Denmark

According to EU Observer, Danish authorities began  seriously investigating the allegations only after a whistleblower, and investigative reporters, shed light on it last year. These revelations followed warnings from Estonian, US and Russian authorities. Yet the bank refused to act on the warnings as now-former CEO Thomas Borgen, who resigned earlier this week, brushed them aside. Before ascending to the top job, Borgen was in charge of the bank’s international business, and the Estonia branch was a crucial locus of profits. Borgen said at a board meeting in 2010 that he did not “come across anything that could give rise to concern,” according to meeting minutes released by the bank on Wednesday.

To save face, the bank pledged €200 million ($235 billion) to create an anti-money laundering foundation in Denmark and Estonia that will “serve only subsidiaries of our Nordic customers and international customers with a solid Nordic footprint.” Meanwhile, Danish Trade Minister Rasmus Jarlov on Wednesday said he would begin drafting “significantly sharper” penalties for money laundering.

According to the internal audit, Bruun & Hjejle said many of the transactions originated in Moscow and St. Petersburg, and some may have involved “members of the Putin family.”

Since the scandal first surfaced earlier this year, Danske bank shares have tumbled 35%.

And if S&P moves through with the downgrade, or the US Treasury Department hints that it may be considering sanctions that would ban Danske from handling dollars – a punishment known as “the death penalty” – that selloff could get much, much worse.

END

UK

The market is not taking the news from Theresa May that UK citizens should prepare for a no deal as there is a UK-EU impasse.

(courtesy zerohedge)

Cable Crushed As Defiant Theresa May Warns “Prepare For No Deal.. EU, UK At Impasse”

Update 2: Following a brief delay, May has begun speaking and the market is not taking it well.

Speaking at No 10 Downing Street, May said “neither side should demand the unacceptable of the other” and demands “serious engagement”

“Throughout this process I have treated the EU with nothing but respect. The U.K. expects the same” and “at this late stage in the process it’s not acceptable to simply reject.”

“We now need to hear from the EU what the real issues are and what the alternatives are. Until we do, we cannot make progress. Until then, we must and will continue the work of preparing ourselves for no deal.”

As Bloomberg notes, May has said hers is the only credible option on the table for a future relationship with the EU after the U.K. leaves next year. Both sides are seeking to agree a deal at the EU Council meeting in October

Additional headlines:

  • *MAY: EU OFFERED OPTION WOULD MAKE MOCKERY OF REFERENDUM
  • *MAY SAYS EU, UK LONG WAY APART ON TWO BIG ISSUES
  • *MAY: NO DEAL IS BETTER THAN BAD DEAL
  • *MAY SAYS UK, EU AT AN IMPASSE
  • *MAY: CANNOT ACCEPT ANYTHING THREATEN INTEGRITY OF UNION
  • *MAY: THE UK EXPECTS RESPECT FROM THE EU
  • *MAY: NOT ACCEPTABLE TO SIMPLY REJECT OTHER SIDE’S PROPOSAL
  • *MAY: NOW NEED TO HEAR FROM EU WHAT REAL ISSUES ARE
  • *MAY: MUST CONTINUE TO PREPARE OURSELVES FOR NO DEAL
  • *MAY: EVEN IN NO DEAL, EU CITIZENS RIGHTS ARE PROTECTED
  • *MAY: WILL NOT OVERTURN RESULTS OF REFERENDUM

And cable is getting crushed…

*  *  *

Update 1Theresa May’s statement is being delayed due to power issue at the prime minister’s house.

Laura Kuenssberg

@bbclaurak

Statement being delayed by technical, not political issues – can’t quite believe it but apparently the power isn’t working properly in Number 10

end

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

Israel/Russia

Israel reveals the destruction of the Syrian ammunition facility in the attack on Latakia (Monday).  Israel will be sending in their Air Force commander to Moscow with details on how the downing of the Russian reconnaissance plane was series of unfortunate events.  The plane was shot down accidentally by Syrian surface to air missiles.

( zerohedge)

New Satellite Images Reveal Aftermath Of Israeli Strikes On Syria; Putin Accepts Offer to Probe Downed Jet

An Israeli satellite imaging company has released satellite photographs that reveal the extent of Monday night’s attack on multiple locations inside Syria.

ImageSat International released them as part of an intelligence report on a series of Israeli air strikes which lasted for over an hour and resulted in Syrian missile defense accidentally downing a Russian surveillance plane that had 15 personnel on board.

The images reveal the extent of destruction on one location struck early in attack in the port city of Latakia, as well as the aftermath of a prior strike on Damascus International Airport. On Tuesday Israel owned up to carrying out the attack in a rare admission.

Syrian official SANA news agency reported ten people injured in the attacks carried out of military targets near three major cities in Syria’s north.

The Times of Israel, which first reported the release of the new satellite images, underscores the rarity of Israeli strikes happening that far north and along the coast, dangerously near Russian positions:

The attack near Latakia was especially unusual because the port city is located near a Russian military base, the Khmeimim Air Force base. The base is home to Russian jet planes and an S-400 aerial defense system. According to Arab media reports, Israel has rarely struck that area since the Russians arrived there.

The Russian S-400 system was reportedly active during the attack, but it’s difficult to confirm or assess the extent to which Russian missiles responded during the strikes.

Three of the released satellite images show what’s described as an “ammunition warehouse” that appears to have been completely destroyed.

The IDF has stated their airstrikes targeted a Syrian army facility “from which weapons-manufacturing systems were supposed to be transferred to Iran and Hezbollah.” This statement came after the IDF expressed “sorrow” for the deaths of Russian airmen, but also said responsibility lies with the “Assad regime.”

Israeli Prime Minister Benjamin Netanyahu also phoned Russian President Vladimir Putin to express regret over the incident while offering to send his air force chief to Russia with a detailed report — something which Putin agreed to.

According to Russia’s RT News, “Major-General Amikam Norkin will arrive in Moscow on Thursday, and will present the situation report on the incident, including the findings of the IDF inquiry regarding the event and the pre-mission information the Israeli military was so reluctant to share in advance.”

Russia’s Defense Ministry condemned the “provocative actions by Israel as hostile” and said Russia reserves “the right to an adequate response” while Putin has described the downing of the Il-20 recon plane as likely the result of a “chain of tragic accidental circumstances” and downplayed the idea of a deliberate provocation, in contradiction of the initial statement issued by his own defense ministry.

Pro-government Syrians have reportedly expressed frustration this week that Russia hasn’t done more to respond militarily to Israeli aggression; however, it appears Putin may be sidestepping yet another trap as it’s looking increasingly likely that Israel’s aims are precisely geared toward provoking a response in order to allow its western allies to join a broader attack on Damascus that could result in regime change.

END

6. GLOBAL ISSUES

 

7  OIL ISSUES

Trump to get his wish:  OPEC tumbles on a report that both OPEC and non OPEC countries will boost oil output by 500,000 barrels per day.

(courtesy zerohedge)

 

OPEC Tumbles On Report OPEC, Non-OPEC May Boost Output By 500,000 Barrels

Trump may get his wish after all.

One day after the US president issued an implicit warning to remove military support for “middle eastern” nations, tweeting that “they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices! We will remember. The OPEC monopoly must get prices down now!”…

… Reuters reports that during tomorrow’s meeting of oil producing states, OPEC and Non-OPEC states may boost production by half a million barrels per day:

OPEC AND NON-OPEC COUNTRIES DISCUSSING POSSIBLE PRODUCTION INCREASE BY ANOTHER 500,000 BPD – SOURCE FAMILIAR WITH DISCUSSIONS

In kneejerk response, Brent pared all of its intraday gains and dropped as low as $78.64, while WTI last traded higher by 23c at $70.55/bbl, also sliding sharply from its $71.80/bbl high.

Earlier in the day, Brent rose above $80 a barrel mark on Friday ahead of a meeting of energy officials who are meeting this weekend to discuss output policy as US sanctions on Iran’s oil exports already begin to restrict supplies. Brent approached four-year highs, rising $1.42 a barrel to $80.12.

On Sunday, OPEC and non-OPEC states will gather in Algeria on Sunday to talk about raising output to offset any impact from a drop in Iranian exports, which has boosted oil prices and prompted the abovementioned angry tweet from Trump.

Among the key concerns ahead of the gathering is how severe the drop in Iranian barrels will be and how much Saudi Arabia, Russia and other big producers will be able to raise their output to compensate for the losses, amid concerns about available spare production capacity, which acts as a buffer should prices rise too high.

“In our view, near-term spare capacity is effectively maxed out,” said analysts at Energy Aspects. They said Saudi Arabia and Russia may not be able to accelerate production much further any time soon even if they signal that they are prepared to unleash more volumes on the market.

It now appears that a half a million boost in production, driven most likely by Saudi Arabia which will be delighted to take over Iran’s market share, much to Tehran’s fury, will be one such response.

end

8 EMERGING MARKET ISSUES.

INDIA

Contagion is spreading to India as they are rocked by a default on one of their big financing companies, IL and FS.

Credit default swaps rise to the highest level in years.

“Volatility Erupts”: India Rocked By Biggest Market

Plunge In 4 Years

UpdateIL&FS has confirmed it is unable to service its obligations in respect of interest payment of the Non-Convertible Debentures, which was due on September 21, 2018.

The fear of contagion has spread across the banking sector and up into India’s sovereign risk, now at 18-month highs…

*  *  *

Turmoil broke out in a relatively stable corner of the global market overnight, when “volatility erupted” in India’s stock market on Friday, after plunges in Yes Bank and Dewan Housing Finance set off an exodus from financial shares and slammed the broader stock market. Yes Bank sank to the lowest level since 2016, losing 30% of its value in one day, after India’s banking regulator refused to extend the tenure of the lender’s chief executive officer,” while Dewan tumbled 43% for its steepest loss on record, Bloomberg reported.

“IL&FS’ problem and Yes Bank’s issues are impacting every financial stock in the market,” A K Prabhakar, head of research at IDBI Capital Market Services Ltd., said by phone. “Leveraged positions are being reduced.”

As a result, the benchmark S&P BSE Sensex plunged, swinging from a 1% gain to a drop of as much as 3% – its wildest intraday move in more than four years – before closing with a 0.8% loss.

Friday’s declines showed that even India is becoming increasingly sensitive to the recent shockwave across the EM space, and that investors remain jittery about Indian financial shares after the recent default by Infrastructure Leasing & Financial Services shook confidence in the sector.

The IL&FS downgrade and default may have nudged investors to avoid potential collateral damage in other financial stocks.

“Downgrades are a serious possibility” for non-bank financial companies, Aneesh Srivastava of IDBI Federal Life Insurance Co. said.

Meanwhile, some investors are concerned that the Reserve Bank of India may tighten rules for housing finance firms after a long legacy of shoddy lending that’s resulted in India’s ballooning bad debt crisis (profiled in “Step Aside Italy: India Is Emerging As Ground Zero Of The World’s Biggest NPL Crisis“) which has received surprisingly little coverage around the globe. This comes after the central bank said Yes Bank’s chief executive officer will have to step down at the end of January.

“Investors are speculating that more bad loans may come to light as RBI may take stricter action,” said Soumen Chatterjee, head of research at Guiness Securities.

The RBI has also taken a tough line with other private-sector bank CEOs in recent months. The central bank refused to extend the tenure of Axis Bank Ltd. chief Shikha Sharma, who said she would step down at the end of 2018 despite support from shareholders.

After a strong rally, which has been largely insulated from the broader emerging market turmoil, cracks have started to emerge in India’s stock market which is down sharply from its late August highs, as the outlook for India stocks appears to be turning amid the financial-industry turmoil.

Adding to the concerns, on Sept 16, Goldman Sachs published a report that called time on the rally and downgraded its stance to the equivalent of a hold rating, citing elevated valuations.

“A bearish phase in the market is beginning,” IDBI Federal’s Srivastava said, which brings us to the question we asked two weeks ago: Is India emerging as the biggest risk in emerging markets?

end

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

Euro/USA 1.1768 DOWN .0008/ 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 SPAIN

 

 

USA/JAPAN YEN 112.67   UP 0.171  (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 1.3197 UDOWN   0.0073  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.2913  UP .0004(CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS FRIDAY morning in Europe, the Euro FELL by 8 basis point, trading now ABOVE the important 1.08 level RISING to 1.1768; / Last night Shanghai composite CLOSED UP 68.24 POINTS OR 2.50%  /Hang Sang CLOSED UP 475.91 POINTS OR 1.73% /AUSTRALIA CLOSED UP  0.45% / EUROPEAN BOURSES ALL GREEN EXCEPT SPAIN

 

 

The NIKKEI: this FRIDAY morning CLOSED  UP 195.00 POINTS OR 0.82% 

 

 

Trading from Europe and Asia

1/EUROPE OPENED ALL GREEN EXCEPT SPAIN

 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang UP 475.91 POINTS OR 1.73%  /SHANGHAI CLOSED UP 68.24 POINTS OR  2.50%

Australia BOURSE CLOSED UP 0.45%

Nikkei (Japan) CLOSED UP 195.00 POINTS OR 0.82% 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1205.15

silver:$14.36

Early FRIDAY morning USA 10 year bond yield: 3.07% !!! UP 1 IN POINTS from THURSDAY night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/

The 30 yr bond yield 3.20 UP 0  IN BASIS POINTS from THURSDAY night. (POLICY FED ERROR)/

USA dollar index early FRIDAY morning: 94.04 UP 13  CENT(S) from THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now your closing FRIDAY NUMBERS \1: 00 PM

 

Portuguese 10 year bond yield: 1.87% DOWN 1    in basis point(s) yield from THURSDAY/

JAPANESE BOND YIELD: +.13%  UP 1 BASIS POINTS from THURSDAY/JAPAN losing control of its yield curve/EXTREMELY VOLATILE YESTERDAY

SPANISH 10 YR BOND YIELD: 1.50% DOWN 1  IN basis point yield from THURSDAY/

ITALIAN 10 YR BOND YIELD: 2.83 DOWN 5   POINTS in basis point yield from THURSDAY/

 

 

the Italian 10 yr bond yield is trading 133 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: FALLS UP TO +.46%   IN BASIS POINTS ON THE DAY

END

IMPORTANT CURRENCY CLOSES FOR FRIDAY

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

Euro/USA 1.1745 DOWN .0031(Euro DOWN 31 Basis points/ represents to DRAGHI A COMPLETE POLICY FAILURE/

USA/Japan: 112.61 UP 0.112 Yen DOWN 11 basis points/

Great Britain/USA 1.3071 DOWN .0199( POUND DOWN 199 BASIS POINTS)

USA/Canada 1.2913  Canadian dollar DOWN 3  Basis points AS OIL FELL TO $70.22

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

This afternoon, the Euro was FELL BY 31 BASIS POINTS  to trade at 1.1745

The Yen FELL to 112.61 for a LOSS of 11 Basis points as NIRP is STILL a big failure for the Japanese central bank/HELICOPTER MONEY IS NOW DELAYED/BANK OF JAPAN NOW WORRIED AS AS THEY ARE RUNNING OUT OF BONDS TO BUY AS BOND YIELDS RISE

The POUND LOST 199 basis points, trading at 1.3071/

The Canadian dollar LOST 3 basis points to 1.2913/ WITH WTI OIL FALLING TO 70.22

The USA/Yuan,CNY closed DOWN AT 6.8571-  ON SHORE  (YUAN DOWN)

THE USA/YUAN OFFSHORE:  6.8470 (  YUAN DOWN)

TURKISH LIRA:  6.2786

the 10 yr Japanese bond yield closed at +.13%   UP 1  BASIS POINT FROM YESTERDAY

 

 

Your closing 10 yr USA bond yield UP 1  IN basis points from THURSDAY at 3.07 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.22 UP 2  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, 94.26 UP 35 CENT(S) ON THE DAY/1.00 PM/

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

London: CLOSED UP  122.91 POINTS OR 1.67%

German Dax : CLOSED UP 104.40 POINTS  OR 0.85%
Paris Cac CLOSED UP 42,58 POINTS OR 0.78%
Spain IBEX CLOSED UP 6.70 POINTS OR 0.07%

Italian MIB: CLOSED UP:  148.36 POINTS OR 0.69%/

 

 

WTI Oil price; 70.22  1:00 pm;

Brent Oil: 78.45 1:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    66.53/ THE CROSS HIGHER BY  0.23 ROUBLES/DOLLAR (ROUBLE LOWER BY 23 BASIS PTS)

USA DOLLAR VS TURKISH LIRA:  6.2786 PER ONE USA DOLLAR.

TODAY THE GERMAN YIELD FALLS +.46 FOR THE 10 YR BOND 1.00 PM EST EST

END

This ends the stock indices, oil price, currency crosses and interest rate closes for today 4:30 PM

Closing Price for Oil, 4:00 pm/and 10 year USA interest rate:

WTI CRUDE OIL PRICE 4:30 PM:$70.83

BRENT: $78.77

USA 10 YR BOND YIELD: 3.06%

USA 30 YR BOND YIELD: 3.20%/

EURO/USA DOLLAR CROSS: 1.7751 DOWN .0024 ( DOWN 24 BASIS POINTS)

USA/JAPANESE YEN:112.55 UP 0.056 (YEN DOWN 6 BASIS POINTS/ .

USA DOLLAR INDEX: 94.21 DOWN 30 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.3080 DOWN 190 POINTS FROM YESTERDAY

the Turkish lira close: 6.2908

the Russian rouble:  66.45 DOWN 0.15 roubles against the uSA dollar.(DOWN 15 BASIS POINTS)

 

Canadian dollar: 1.2915 DOWN 5 BASIS pts

USA/CHINESE YUAN (CNY) : 6.8571  (ONSHORE)

USA/CHINESE YUAN(CNH):  6.8496 (OFFSHORE)

German 10 yr bond yield at 5 pm: ,0.46%

 

The Dow closed  UP  86.52 POINTS OR 0.32%

NASDAQ closed DOWN 41,27  points or 0.51% 4.00 PM EST


VOLATILITY INDEX:  11.54  CLOSED DOWN 0.26

LIBOR 3 MONTH DURATION: 2.367%  .LIBOR  RATES ARE RISING/big jump today

(from 2.335 yesterday)

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

TRADING IN GRAPH FORM FOR THE DAY

 

Tariff-Tantrum, Walmart-Warning, & Dollar-Dump Spark

Global Stock-Buying Panic (Except US Tech)

 

Seriously…

 

 

Chinese stocks soared higher this week (SHCOMP +4.3%) – the best week since March 2016…

 

While China surged in two major National Team pumps, Europe was a one-way-street of stock-love all week…

 

But US markets were a little more mixed with The Dow leading, S&P holding gains, and Nasdaq, Small Caps, & Trannies all red…

 

It was quad-witch today, and a massive index reclassification, which prompted yuuge volume in stocks…

 

On the day, The Dow trod water rather too calmly as the rest of the market rolled over…and some serious moves into the close…

 

Dow (blue) leads the way in September (+3%) as Small Caps (red) and Nasdaq (green) remain in the red…

 

US still leads the world on the year…

 

FANG Stocks ended lower on the week

 

Making headlines all week were the weed-stocks, as Tilray exploded higher and crashed back to earth, but the broader cannabis market (ETF MJ), had a big week…

But it’s not a bubble…

 

Ahead of today’s major index reclassification, the S&P Tech sector ETF (XLK) saw an unprecedented inflow (at a time when heavyweight tech growth stocks like FB and GOOGL are about to be removed from it)…

 

Treasury yields rose for the 4th week in a row (longest losing streak since Feb)…

 

The yield curve steepened on the week (but was well off its steepest levels by the close)…

 

Notably after Tuesday’s major surge in yields – back above 3.00%, 10Y Yields have largely trod water in a very narrow range…

 

But 10Y remains off 2018 yield highs for now…

 

The Dollar Index fell for the second straight week – the biggest two-week drop since January…

NOTE – this week played out almost exactly like last week from a price-pattern perspective

Cable crashed most since June 2017 today following May’s “no deal” speech…

 

And as the Argentine Peso soared, Cable was even worse on the day than the Turkish Lira…

EM FX had the best week since February… back to 4-week highs…

 

The Hong Kong dollar jumped by the most since October 2003 this week, with analysts citing the prospect of higher rates in the city and stop losses as possible triggers.

 

Cryptocurrencies had a big week, but none bigger than altcoin Ripple, up over 100% on the week…

Copper soared this week on China stimulus hopes but despite USD weakness, PMs managed only modest gains…

 

Gold had a chaotic moment of manipulation this morning as someone decided 0845ET was the perfect time to puke $1.2 billion notional of paper gold into the futures market… Silver bounced back but gold was less able to…

 

Copper had its best week since Nov 2016 (Trump election)…

 

Finally, we note that U.S. stock valuations are increasingly in a world of their own…

The gap between these indicators widened in the 12 months ended Thursday by 20 percent, more than it has in any calendar year since 1997, according to data compiled by Bloomberg.

And as stocks hit record highs in price and valuations, @ETF.com reports that a massive $34 bn poured into ETFs this week…

END

 

 

market trading/this morning

Both the Br. pound and the Cdn loonie both tumble as there is:

1. no foreseeable deal on the Brexit with the EU

2 no deal on NAFTA for Canada

(courtesy zerohedge)

 

Dollar Suddenly Surges As Pound, Loonie Tumble

After sliding to the lowest level since late July, the Bloomberg Dollar index has found renewed strength this morning, spiking in the past hour.

However, unlike recently when dollar strength was the result of EM weakness, today’s action is largely the result of two G-10 events: on one hand, the British pound is tumbling following Theresa May’s defiant gamble to go all in Brexit negotiations, saying she will not “change tack” despite the EU rebuke of her Chequers plan. Pulling off a Trudeau, when she said that “no deal is better than a bad deal” spooked the FX market, at which point traders started pricing in a greater likelihood of a cliff-edge Brexit, as they had in August.

As Bloomberg’s Stephen Kirland points out, while there’s still time left for talks to move forward, as the deadline approaches the window for reaching some kind of compromise narrows markets will remain volatile: “a close today above the 21-DMA could open the way for further pound losses.”

Meanwhile, Canada’s currency also tumbled when after spiking shortly prior following stronger than expected retail sales, Kevin Hasset speaking on Fox News, warned that Nafta negotiations with Canada are not going well at all:

WHITE HOUSE ADVISER HASSETT SAYS GETTING ‘VERY, VERY CLOSE’ TO HAVING TO MOVE FORWARD ON TRADE DEAL WITH MEXICO AND NOT CANADA: RTRS

This was enough to send the Loonie sharply lower, hitting session lows and adding to more USD strength as tariff and Brexit tensions are once again back on the table.

Market data

Markit reports a huge drop in the USA service component but  the Markit manufacturing rebounds.  The big storm was blamed

(courtesy zerohedge)

US Services Economy Collapses To 18-Mo Lows As Manufacturing Rebounds, Storms Blamed

Having fallen for the last 3-4 months, as ISM’s surveys have rebounded, Markit’s Manufacturing and Services PMIs were expected to bounce modestly in the flash September print (after Europe’s composite PMI fell disappointingly).

However, Markit reported a mixed picture for September with Services collapsing to the lowest since March 2017 and Manufacturing rebounding… as it seems Services is catching down to the reality of dismal ‘hard data’.

  • Markit US Manufacturing 55.6 vs 55.0 exp
  • Markit US Services 52.9 vs 55.0 exp.

The Composite Index slipped to its weakest since April 2017…

 

Comment Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:

With storms hitting the east coast, it was no surprise to see some disappointing survey data in September, with the flash PMI indicating that the pace of economic growth slipped to its lowest for almost one-and-a-half years.

“However, business activity remained encouragingly resilient during the month, commensurate with third quarter GDP growing at an annualised rate approaching 3%.

“Growth may well pick up again as we move into the fourth quarter. With new orders growth accelerating and backlogs of work rising due to weather-related disruptions, the survey data suggest underlying demand remains robust and that there’s an accumulation of work that will roll over into stronger economic growth in coming months.

Most encouraging was an upturn in hiring. The survey’s employment gauge rose to a level indicative of non-farm payroll growth topping 200,000 in September.

On the downside, prices charged spiked higher again during the month, rising at the steepest rate seen for at least nine years, as supply shortages and rising costs, often linked to tariffs, fed through to selling prices.

“The escalation of trade wars, and the accompanying rise in prices, contributed to a darkening of the outlook, with business expectations for the year ahead dropping sharply during the month. While business activity may rebound after the storms, the drop in optimism suggests the longer term outlook has deteriorated, at least in the sense that growth may have peaked.

USA economic/general stories
Maybe  Ford was almost raped by his look a like: Chris Garret…a new theory emerges. Ford has now debunked this. However let us see how this plays out
(courtesy zerohedge)

Was Kavanaugh Accuser Almost Raped By His Doppelgänger? A New Theory Emerges

A new theory has emerged in the case of whether Supreme Court nominee Brett Kavanaugh sexually assaulted accuser Christine Blasey Ford roughly 35 years ago; it was Kavanaugh’s high school look-alike, whose high school house better fits Ford’s description, and who kept in touch with the other guy allegedly in the room, Mark Judge.

The theory was presented Thursday afternoon by Ed Whelan, a former clerk to USSC Justice Antonin Scalia and currently president of the Ethics and Public Policy Center (EPPC), a conservative think tank. Using entirely circumstantial evidence which could certainly ruin the life of the man at the center of the new theory, Whelan suggests that Kavanaugh’s high school doppelgänger, Chris Garrett, may have in fact been responsible for Blasey Ford’s recollection of the alleged incident.

Brett Kavanaugh (left), Chris GarrettEarlier this week, Whelan tweeted “By one week from today, I expect that Judge Kavanaugh will have been clearly vindicated on this matter. Specifically, I expect that compelling evidence will show his categorical denial to be truthful. There will be no cloud over him.”

Here is his theory: 

Ed Whelan@EdWhelanEPPC

Okay, I’ll begin laying out some information concerning Christine Blasey Ford’s allegations against Judge Kavanaugh.

Ed Whelan@EdWhelanEPPC

Dr. Ford may well have been the victim of a severe sexual assault by someone 36 years ago. Her allegations are so vague as to such basic matters as when and where that it is impossible for Judge Kavanaugh to *prove* his innocence.

Ed Whelan@EdWhelanEPPC

But there are compelling reasons to believe his categorical denial. Let’s look at one set of reasons.

Ed Whelan@EdWhelanEPPC

According to Ford’s letter, the assault occurred “in a suburban Maryland area home at a gathering that included me and four others.” Her WaPo account adds that the house was “not far from” the Columbia Country Club.

Ed Whelan@EdWhelanEPPC

The “four others” that she and her lawyer have identified are Kavanaugh, Mark Judge, P.J. Smyth, and a female classmate of Ford’s. None of the four lived in the vicinity of the Columbia Country Club.

Ed Whelan@EdWhelanEPPC

The “four others” that she and her lawyer have identified are Kavanaugh, Mark Judge, P.J. Smyth, and a female classmate of Ford’s. None of the four lived in the vicinity of the Columbia Country Club.

Ed Whelan@EdWhelanEPPC

Kavanaugh’s home was 3.6 miles away; Smyth’s 4.3 miles; Judge’s 10 miles; and the female classmate’s 7 miles.

Ed Whelan@EdWhelanEPPC

Here is a map of the homes in relation to Columbia Country Club.

View image on TwitterView image on Twitter

Ed Whelan@EdWhelanEPPC

Here is a house that is barely a half-mile from the Columbia Country Club. Street address: 3714 Thornapple Street, Chevy Chase.

View image on TwitterView image on Twitter

Ed Whelan@EdWhelanEPPC

Here is the house’s floor plan: main floor and upstairs. https://www.zillow.com/homedetails/3714-Thornapple-St-Chevy-Chase-MD-20815/37173778_zpid/ 

Ed Whelan@EdWhelanEPPC

The floor plan corresponds closely to Ford’s description of the house where the gathering took place. Here’s the “short stair well” (part of a U-shaped staircase with landing) running up from the foyer next to the living room.

View image on Twitter

Ed Whelan@EdWhelanEPPC

Right at the top of the stairs is a door leading to a bedroom. This matches Ford’s account of the location of the bedroom she was “pushed” into.

View image on Twitter

Ed Whelan@EdWhelanEPPC

END
Trump weighs in and asks pertinent questions on this case:
a) if the attack was as bad we are led to believe, why did she or “her loving parents” not file with local law enforcement? I ask that she bring those filings forward so that we can learn  date, time, and place!”
b)“Why didn’t someone call the FBI 36 years ago?”
(courtesy zerohedge)

Trump Challenges Kavanaugh Accuser To Produce Actual Evidence Of Assault

In what will, we are sure, now become the liberal media’s focus for the next 24hr news cycle, President Trump appears to have weighed in on Supreme Court nominee Brett Kavanaugh’s accuser’s credibility.

Trump appeared to set the scene for his latest tweet by noting earlier that Judge Brett Kavanaugh is a fine man, with an impeccable reputation, who is under assault by radical left wing politicians who don’t want to know the answers, they just want to destroy and delay. Facts don’t matter. I go through this with them every single day in D.C.”

Donald J. Trump

@realDonaldTrump

Judge Brett Kavanaugh is a fine man, with an impeccable reputation, who is under assault by radical left wing politicians who don’t want to know the answers, they just want to destroy and delay. Facts don’t matter. I go through this with them every single day in D.C.

Which led to the following tweet, questioning the fact that if the attack was as bad we are led to believe, why did she or “her loving parents” not file with local law enforcement?

” I ask that she bring those filings forward so that we can learn  date, time, and place!”

Donald J. Trump

@realDonaldTrump

I have no doubt that, if the attack on Dr. Ford was as bad as she says, charges would have been immediately filed with local Law Enforcement Authorities by either her or her loving parents. I ask that she bring those filings forward so that we can learn date, time, and place!

And cue the outraged accusations that he is attacking a poor woman who was too afraid to come forward at the time, because when it comes to this kind of crime accusation, as Trump says “facts don’t matter” and you’re guilty, period, or something.

However, Trump was not done. He doubled-down on his questioning of Ford’s recollection of events, asking “Why didn’t someone call the FBI 36 years ago?”

Donald J. Trump

@realDonaldTrump

The radical left lawyers want the FBI to get involved NOW. Why didn’t someone call the FBI 36 years ago?

Why indeed?

end

The reason for that solar observatory closing was due to child pornography filtered through this facility
(courtesy zerohedge)

The Reason The Solar Observatory Was Closed Is Revealed, And It’s As Disturbing As It Is Unbelievable

As we noted earlier in the week, The National Solar Observatory in Sunspot, New Mexico reopened on Monday after it was shut down September 6 following a mysterious FBI raid, according to the group which manages the facility.

And despite federal agents swooping in on a Blackhawk helicopter, and a “bunch of people around antennas and work crews on towers” before the site was completely evacuated – the official explanation has left people scratching their heads; According to officials, they had been cooperating with an existing law enforcement investigation, when “a suspect in the investigation potentially posed a threat to the safety of local staff and residents,” so “moving the small number of on-site staff and residents off the mountain was the most prudent and effective action to ensure their safety.”

AURA has been cooperating with an on-going law enforcement investigation of criminal activity that occurred at Sacramento Peak. During this time, we became concerned that a suspect in the investigation potentially posed a threat to the safety of local staff and residents. For this reason, AURA temporarily vacated the facility and ceased science activities at this location.

The decision to vacate was based on the logistical challenges associated with protecting personnel at such a remote locationand the need for expeditious response to the potential threat. AURA determined that moving the small number of on-site staff and residents off the mountain was the most prudent and effective action to ensure their safety. –AURA

No word on why the FBI was involved, or urgently needed to fly in on a loud, suspect-spooking helicopter instead of simply driving to the facility, or why they couldn’t just arrest the guy and keep the place open. Also no explanation for the work crew climbing all over the towers, or why they shut down the post office.

But it gets even more mysteriousas SHTFplan.com’s Mac Slavo notes, the “official” reason for the closure is far more sinister, as KTSM.com reports:

A federal search warrant reveals that Sunspot Solar Observatory was shut down as FBI agents conducted computer forensic searches for child pornography.

The source of child pornography was traced to an IP address used at the observatory and a source within the building observed a computer with “not good” images on it, the warrant states.

The warrant also states that the suspect used the observatory’s WiFi and a personal laptop to download the images.

According to the FBI, a janitor is the main suspect. He was one of the few people who had access to the observatory from dusk until dawn. His name is listed on the warrant, but he has yet to be charged with a crime.

The observatory reopened on September 17.

Some are skeptical about this explanation, given that all employees were evacuated from the site. About a dozen residents who live around the site were also evacuated. The U.S. Postal Service decided to evacuate employees, too, according to a report by the Alamogordo Daily News.

Evacuating employees, local residents, and post office employees seems a little extreme, doesn’t it? How would a computer containing child pornography (as terrible as it is) be dangerous to employees and people who were not even in the building?

Why were the people working on the radio towers?

When was the last time a pedophile was taken down with a Blackhawk? It appears to us that the “official” reason for this debacle is even more unreasonable than the official “facts” behind the Skripal murders in England (though we are sure it will not be long before the Russians are blamed for the solar minimum and the need to shut down the observatory (either them or Trump).

END

Wells Fargo continues to disappoint as they cut 10% of their staff

(courtesy zerohedge)

Wells Fargo Announces 10% Staff Cuts As CEO Struggles To Impress Analysts

As hopes for a steeper yield curve have lifted bank stocks, Wells Fargo CEO Tim Sloan is apparently trying to bolster Wells’ lagging share price as the numerous scandals that have tarnished the banks credibility and triggered fines, criminal probes and an unprecedented Fed sanction have continued to take their toll.

Per Bloomberg, Sloan is planning to trim its workforce by between 5% and 10% over the next three years with the explicit goal of propping up the company’s shares. While the cuts could provide the bank with necessary cover to purge bad apples from its employee ranks, they have also been broadly expected since the bank reported one of its worst-ever mortgage numbers as the division struggles under the yoke of Fed sanctions and with a housing market that is already beginning to roll over.

Wells

In recognition of Wells’ collapse in mortgage lending, Sloan announced last month that the bank would lay off more than 600 employees from its mortgage division after losing the mantle of America’s top mortgage lender to nonbank fintech phenom Quicken LoansAlso, the fact that the housing market is beginning to roll over isn’t helping bolster the bank’s assets.

Sloan, who made the announcement to employees at a town-hall meeting on Thursday, has reduced headcount as he cleans up the bank and streamlines operations. The San Francisco-based lender is struggling to grow under the weight of a Federal Reserve assets cap. It had 265,000 employees as of June 30, according to a regulatory filing.

“It says something about the revenue environment for them,” Charles Peabody, an analyst at Portales Partners, said in an interview. “If they’re not in the midst of recognizing that revenues are in trouble, they’re anticipating it.”

Sloan has already promised $4 billion in cost cutbacks by the end of next year. The cuts announced Thursday have already been incorporated into the bank’s year-end expense targets for 2018, 2019 and 2020, according to the company.

“We are continuing to transform Wells Fargo to deliver what customers want – including innovative, customer-friendly products and services – and evolving our business model to meet those needs in a more streamlined and efficient manner,” Sloan said in a statement.

Wells shares have climbed 23% since Sloan took the reins in October 2016. However, it continues to lag the KBW Ban Index by 53%.

Wells

Meanwhile, analysts’ continued pessimism has sparked rumors that the bank’s board is seeking to oust Sloan. Earlier this year, reports circulated that they had approached Gary Cohn about taking over.

Analysts cut their estimates for Wells Fargo earnings again and again after the Fed punished the bank with an unprecedented cap on growing assets. The analysts began this year predicting a record $24 billion annual profit, and now the average estimate is for less than $21 billion, the weakest since 2012. Speculation that the bank wants a new CEO spilled into public this week when the New York Post said the board had approached former Goldman Sachs Group Inc. executive Gary Cohn.Cohn, who earlier this year finished a stint as a White House adviser, denied the report, as did Wells Fargo Chair Betsy Duke, who said Sloan “has the unanimous support of the board, and this support has never wavered.”

But with the bank unable to meaningfully expand its assets thanks to the Fed’s sanctions, Sloan has few alternatives aside from trimming head count and costs if he wants to impress the analysts. Expect more heads to roll in the near future.

SWAMP STORIES

Nellie Ohr and James Baker refuse to sit for Congressional testimony and they will be subpoenaed

(courtesy zerohedge)

Nellie Ohr Refuses To Sit For Congressional Testimony

After Trump Declassification Order

Spygate operative Nellie Ohr is refusing to appear in a closed-door Congressional hearing that was slated for Friday, according to Chuck Ross of the Daily Caller.

Ohr, who worked for Fusion GPS, the firm behind the Steele dossier, was scheduled to appear for interviews during a joint session with the House Judiciary and House Oversight & Government Reform committees. But two congressional sources said that she is not cooperating with the requests and will have to be subpoenaed to compel her appearance.

The sources also said that former FBI general counsel James Baker is not cooperating with the committees’ request for an interview.

“The Committee continues to seek the testimony of Nellie Ohr and Jim Baker and will compel their testimony if necessary,” an aide to House Judiciary Committee Chairman Bob Goodlatte told TheDCNF. –Daily Caller

Ohr’s cancellation comes on the heels of an order by President Trump to declassify Trump-Russia documents “immediately” and “without redaction,” including the text messages from several key players, including Ohr’s husband, twice-demoted DOJ official Bruce Ohr.

Nellie Ohr, a Russia expert who speaks fluent Russian, was set to discuss her work for opposition reserarch firm Fusion GPS – which employed her from December 2015 until right after the 2016 US election as part of their anti-Trump efforts. In 2010, she represented the CIA’s “Open Source Works” expert working group, along with her husband Bruce and Fusion GPS co-founder Glenn Simpson.

Josh Caplan@joshdcaplan

Nellie Ohr, the wife of demoted DOJ official, Bruce Ohr, not only worked for Fusion GPS, but has also represented the CIA’s “Open Source Works” group. https://www.ncjrs.gov/pdffiles1/nij/230846.pdf 

Notably, the Ohrs had extensive contact with Christopher Steele, the ex-MI6 spy who authored the salacious anti-Trump dossier used to justify spying on the Trump campaign during the election, and later to smear Donald Trump right before he took office in 2017. According to emails turned over to Congress and reported in late August, the Ohrs would have breakfast with Steele on July 30 at the downtown D.C. Mayflower hotel – days after Steele had turned in several installments of the infamous dossier to the FBI. The breakfast took place one day before the FBI/DOJ launched operation “Crossfire Hurricane,” the codename for the official counterintelligence investigation into the Trump campaign.

“Great to see you and Nellie this morning Bruce,” Steele wrote shortly following their breakfast meeting. “Let’s keep in touch on the substantive issues/s (sic). Glenn is happy to speak to you on this if it would help,” referring to Fusion GPS co-founder Glenn Simpson.

Ohr’s contacts with Steele increased after the FBI cut ties with the dossier author just before the election because of unauthorized contacts with the press. Ohr provided at least a dozen briefings to the FBI about his interactions with Steele from November 2016 to May 2017. –Daily Caller

Congressional GOP have repeatedly questioned why the FBI continued to rely on Ohr as a backchannel from Steele after they determined that the former UK spy was unfit to remain a confidential source over improper media disclosures.

Oddly, Nellie Ohr also became a Ham radio enthusiast late in life – which some have surmised may have been a method of communicating in the Trump-Russia probe without being surveilled by the NSA or other government agencies.

was Nellie Ohr’s late-in-life foray into ham radio an effort to evade the Rogers-led NSA detecting her participation in compiling the Russian-sourced Steele dossier? Just as her husband’s omissions on his DOJ ethics forms raise an inference of improper motive, any competent prosecutor could use the circumstantial evidence of her taking up ham radio while digging for dirt on Trump to prove her consciousness of guilt and intention to conceal illegal activities. –The Federalist

Looks like by avoiding her Friday testimony, Nellie Ohr will buy time to get her story straight, after a subpoena – and ostensibly after whatever new information will be brought to light resulting from Trump’s declassification order.

end

 

The fun begins:  Trump asks the Inspector General to review documents for declassification on an expedited basis. Trump also states that he has the last word on the matter

(courtesy zerohedge)

 

Trump: Inspector General To Review Documents For

Declassification “On An Expedited Basis” 

President Trump added a major caveat to his Monday order to release all text messages related to the Russia investigation with no redactions, as well as specific pages from the FBI’s FISA surveillance warrant application on former Trump campaign aide Carter Page, and interviews with the DOJ’s Bruce Ohr.

In a Friday morning Tweet, Trump said: “I met with the DOJ concerning the declassification of various UNREDACTED documents. They agreed to release them but stated that so doing may have a perceived negative impact on the Russia probe. Also, key Allies’ called to ask not to release. Therefore, the Inspector General has been asked to review these documents on an expedited basis. I believe he will move quickly on this (and hopefully other things which he is looking at). In the end I can always declassify if it proves necessary. Speed is very important to me – and everyone!”

Donald J. Trump

@realDonaldTrump

I met with the DOJ concerning the declassification of various UNREDACTED documents. They agreed to release them but stated that so doing may have a perceived negative impact on the Russia probe. Also, key Allies’ called to ask not to release. Therefore, the Inspector General…..

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

(courtesy zerohedge)

@ByronYork: If past is any lesson, there will be strategic leaks before the release of Trump-Russia documents the president has ordered declassified.
John Solomon with the latest leak: FBI memos detail ‘partisan axes,’ secret conflicts behind the Russia election meddling assessment
James Comey was chief anti-Trump dossier proponent within U.S. intelligence community
The sources said James R. Clapper, then director of national intelligence, and John O. Brennan, then director of the CIA, objected on grounds that the dossier remained largely unconfirmed information from a former British spy, not vetted U.S. intelligence…[IC trying to exonerate Brennan and Clapper?]
FBI Had “Two Sets of Records” on Trump Investigation; Comey, McCabe Implicated: Carter
One that was real, one that was made for appearances… I also believe that there are people within the FBI that have actually turned on their former employers and are possibly eventestifying and reporting what happened inside the FBI to both the Inspector General and possibly even a Grand Jury….
Source: Nellie Ohr Is Refusing To Appear For Congressional Deposition
Nellie Ohr, the wife of Justice Department official Bruce Ohr, is refusing to appear before Congress for a closed-door hearing that was scheduled to take place this Friday… Ohr, who worked for Fusion GPS, the firm behind the Steele dossier, was scheduled to appear for interviews during a joint session with the House Judiciary and House Oversight & Government Reform committees…
@PoliticalShort: Nellie Ohr is refusing to appear before Congress for a closed-door hearing that was scheduled to take place this Friday. Also, former FBI general counsel James Baker is not cooperating with the committees’ request for an interview either.
@Thomas1774Paine: Who can truly blame FBI execs for blowing off Congress. All these people do is talk talk talk talk talk. And hide in their behind-door meetings. And NEVER put anyone in jail for contempt. I’d be laughing too. Feckless lot.
@ByronYork: Showdown? In letter, Pelosi/Schumer/Schiff/Warner order intel agencies to ignore presidential order on declassification until consulting with Congress.http://ow.ly/Mplg30lSrYn
Democrat Letter Raises Serious Constitutional Concerns—and Some Serious Questions
Congressional members are responsible for various oversight issues, but they cannot issue an “order” to officials within the Executive Branch—especially one that attempts to circumvent a Presidential Order…
    The demand by the Go8 Congressional Democrats is a written attempt to assume power not rightly granted by our Constitution…
@FoxNews: @AlanDersh: “I would say the vast majority of classified material today is classified to protect the reputation of people, not to protect the national interests of the United States.”
Former Scalia Law Clerk Drops Pictures & Evidence That Blows Christine Ford’s Case Wide Open   https://www.thegatewaypundit.com/2018/09/former-scalia-law-clerk-drops-pictures-and-evidence-that-blows-christine-fords-case-wide-open/
end
This is totally nuts:  Rosenstein proposed to secretly record Trump in an effort to invoke the 25th amendment.  It sure shows Rosenstein’s resentment of Trump and he should be fired.  Judging by these actions, it sure looks like we found the guy who penned the NY Times op ed earlier this month
(courtesy zerohedge)

Rosenstein Proposed Secretly Recording Trump, Invoking 25th Amendment

If this latest revelation from the New York Times doesn’t drive President Trump to fire Deputy Attorney General Rod Rosenstein, or convince Congress to impeach him, then we can’t imagine what would.

Rosenstein

In a shocking report citing a bevy of anonymous DOJ officials, the NYT recounted on Friday an aborted mutiny attempt organized by Rosenstein, who allegedly tried to organize members of Trump’s cabinet to invoke the 25th amendment to oust Trump from office. In an attempt to persuade the clearly reluctant members of Trump’s cabinet, Rosenstein suggested that he had taped Trump “to expose the chaos” he said was engulfing the West Wing.

Mr. Rosenstein made the remarks about secretly recording Mr. Trump and about the 25th Amendment in meetings and conversations with other Justice Department and F.B.I. officials. Several people described the episodes, insisting on anonymity to discuss internal deliberations. The people were briefed either on the events themselves or on memos written by F.B.I. officials, including Andrew G. McCabe, then the acting bureau director, that documented Mr. Rosenstein’s actions and comments.

None of Mr. Rosenstein’s proposals apparently came to fruition. It is not clear how determined he was about seeing them through, though he did tell Mr. McCabe that he might be able to persuade Attorney General Jeff Sessions and John F. Kelly, then the secretary of homeland security and now the White House chief of staff, to mount an effort to invoke the 25th Amendment.

According to the NYT, this all happened during the spring of 2017, shortly after Trump cited a letter that Rosenstein had penned criticizing former FBI Director James Comey’s handling of the Clinton probe as justification to fire Comey. Rosenstein reportedly felt he had been “used” by the president as an excuse to fire Comey.

Rosenstein also tried to recruit some of his would-be co-conspirators to surreptitiously record Trump in the Oval Office.

Mr. Rosenstein then raised the idea of wearing a recording device or “wire,” as he put it, to secretly tape the president when he visited the White House. One participant asked whether Mr. Rosenstein was serious, and he replied animatedly that he was.

The Times said Rosenstein “appeared conflicted, regretful and emotional” during what can only be described as a coup attempt against a sitting president.

While Rosenstein and Trump clearly never saw eye to eye, the level of resentment that Rosenstein harbored toward the president was not previously known. Unsurprisingly, the story has already fired up speculation  that Rosenstein may have been the anonymous administration official who penned a critical op-ed that was published earlier this month in the New York Times.

Trading News@4xInsight

I think the NYT just revealed who anonymous is!

Trading News@4xInsight

Sept. 21 (New York Times) — Rod Rosenstein, the official who appointed Robert Mueller, once proposed secretly taping President Trump and removing him via the 25th Amendment.

And as Arthu Schwartz put it, enough is enough:

Arthur Schwartz

@ArthurSchwartz

Enough is enough. Time to clean house — starting with this traitor. https://www.nytimes.com/2018/09/21/us/politics/rod-rosenstein-wear-wire-25th-amendment.html 

Two weeks into his job as deputy attorney general, Rod J. Rosenstein was confronted with a crisis: the president’s firing of James B. Comey as F.B.I. director.

Rosenstein Suggested He Secretly Record Trump and Discussed 25th Amendment

In the turbulent days after the firing of James B. Comey, the deputy attorney general appeared conflicted about his role and wanted to expose administration dysfunction, people around him said.

nytimes.com

And if you still had any lingering doubts that the deep state doesn’t exist…well…

Nick Short

@PoliticalShort

Rosenstein suggested last year that he secretly record President Trump in the White House and he also discussed recruiting cabinet members to invoke the 25th Amendment to remove Trump. But there’s no deep state right? https://www.nytimes.com/2018/09/21/us/politics/rod-rosenstein-wear-wire-25th-amendment.html 

end

Let us close out this tumultuous week with this offering courtesy of Greg Hunter/and Dr Dave Janda

(courtesy Greg hunter/Dr Dave Janda)

Kavanaugh Triggers Dems, Declassified – Deep State Panic, Obama Trump Meeting Revealed

By Greg Hunter On September 21, 2018 In Weekly News Wrap-Ups

By Greg Hunter’s USAWatchdog.com (WNW 353 9.21.18)

Today, I am doing something different for the Wrap-Up. I have brought in Dr. Dave Janda of the popular radio show “Operation Freedom” to talk about the week’s top stories. The Wrap-Up is more in the form of a discussion and not the normal presentation.The confirmation of Judge Kavanaugh to the Supreme Court continues to spiral out of control. Will Dr. Ford, who has made a serious sexual assault allegation from more than 35 years ago about Judge Kavanaugh, testify in front of Congress? The Democrats look desperate to block Kavanaugh because after he is seated on the highest court all Hell is going to break loose. Indictments cometh from the Trump Administration.

Dr. Janda says what the Democrats are doing is panicking over the declassifying and release of incriminating DOJ and FBI documents that prove there was a plot to frame President Trump with phony evidence. The Dems and Deep State are fighting the confirmation of Judge Kavanaugh to the Supreme Court because they know when he is seated, Trump will have another judge loyal to the Constitution and a solid 5 to 4 court. This means that criminals in top positions in the U.S. government can and will be indicted. The Dems and Deep State are doing everything possible to block Kavanaugh, but he is going to be pushed through.

Dr. Janda also reveals that his sources say a meeting took place between former President Obama and President Trump. Why did Obama call for a meeting? What was the outcome? Janda breaks this news and puts it into perspective.

Another hot story happened in the Middle East, and a gigantic conflict was averted–for now. Janda says the Deep State is desperate to get Russia pulled into a fight to cover up all the financial crimes that the top New World Order players have committed. Russia did not take the bait, and Janda explains why with the help of his sources.

Greg and Dave also talk about the reset of the economy and the restoration of the rule of law that is coming.

Join Greg Hunter and Dr. Dave Janda as they do an in- depth discussion on the week’s top stories in the Weekly News-Wrap-Up. (It’s 1 hour and 20 minutes long.)

After the Interview:

Retired firefighter Mark Taylor, author of “The Trump Prophecies,” will be the guest for the “Early Sunday Release.” Mark Taylor’s popular book has been made into a full length feature film that has an early October release date. Click here to see the trailer.

Video Link

https://usawatchdog.com/kavanaugh- triggers-dems-declassified-deep-state-panic-obama-trump- meeting-revealed/

-END-

 

WE WILL SEE YOU ON MONDAY NIGHT.

 

ALL THE BEST

 

 

HARVEY

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