OCTOBER 16/GOLD UP $1.00 TO $1227.90/SILVER DOWN 2 CENTS TO $14.68/GLD ADDS ANOTHER 4.12 PAPER TONNES TO ITS INVENTORY AND THIS IS THE SIGN THAT WE HAVE BEEN WAITING FOR: GOLD WILL BE ON THE MOVE!!/HUNGARY’S CENTRAL BANK INCREASES ITS HOLDINGS BY 1000% TO 31.5 TONNES./POLAND ALSO PURCHASES 4.4 TONNES BUT THAT GOLD IS “STORED” IN LONDON/SURPRISINGLY BOTH CHINA AND JAPAN DUMP USA TREASURIES/CARTER PAGE SUES THE DNC AS WELL AS THE LAW FIRM OF PERKINS COE/

GOLD: $1227.90 UP  $1.00 (COMEX TO COMEX CLOSINGS)

Silver:   $14.68 DOWN 2 CENTS (COMEX TO COMEX CLOSING)

Closing access prices:

Gold :  1224.50

 

silver: $14.67

 

 

 

 

 

 

 

 

 

 

 

 

For comex gold and silver:

OCT

 

 

 

 

 

NUMBER OF NOTICES FILED TODAY FOR  OCT CONTRACT: 30 NOTICE(S) FOR 3000 OZ

Total number of notices filed so far for OCT:  944 for 944400 OZ  (2.9362 TONNES)

 

 

 

 

 

FOR OCTOBER

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

1 NOTICE(S) FILED TODAY FOR

5,000 OZ/

Total number of notices filed so far this month: 340 for 1,700,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE  $6780: UP  $335

 

Bitcoin: FINAL EVENING TRADE: $6785  UP  340 

 

end

 

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  386 CONTRACTS FROM 199,552 DOWN TO  199,166 DESPITE YESTERDAY’S 10 CENT RISE IN SILVER PRICING AT THE COMEX. TODAY WE  MOVED FURTHER FROM AUGUST’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 STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:

120 EFP’S FOR NOV.  1597 EFP’S FOR DECEMBER AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 1717 CONTRACTS. WITH THE TRANSFER OF 1717 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 1717 EFP CONTRACTS TRANSLATES INTO 8.585 MILLION OZ  ACCOMPANYING:

1.THE 10 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  39.505 MILLION  OZ STANDING  IN SEPT. AND 1,805,000 OZ STANDING IN OCTOBER.

 

 

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

25,634 CONTRACTS (FOR 12 TRADING DAYS TOTAL 25,634 CONTRACTS) OR 128.17 MILLION OZ: (AVERAGE PER DAY: 2136 CONTRACTS OR 10.680 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF SEPT:  128.17 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 18.28% 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:           2,347.69    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.

ACCUMULATION FOR SEPTEMBER 2018:                                 167,05          MILLION OZ

RESULT: WE HAD A DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 386 DESPITE THE 10 CENT GAIN IN SILVER PRICING AT THE COMEX //YESTERDAY. THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 1717 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) .

TODAY WE GAINED A GOOD SIZED: 1437 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:

i.e 1717 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 386  OI COMEX CONTRACTS. AND ALL OF  DEMAND HAPPENED WITH A 10 CENT RISE IN PRICE OF SILVER  AND A CLOSING PRICE OF $14.70 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 IN SEPTEMBER AN FINAL MONSTROUS 39.505 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 JUST UNDER 1 BILLION oz i.e. 0.9965 BILLION OZ TO BE EXACT or 144% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT AUGUST MONTH/ THEY FILED AT THE COMEX: 1 NOTICE(S) FOR 5,000 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. , SEPT:  AN INITIAL HUGE 39.505 MILLION OZ./AND NOW OCTOBER:1,805,000 oz
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018) AND NOW AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

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

IN GOLD, THE OPEN INTEREST ROSE BY A CONSIDERABLE SIZED 4981 CONTRACTS UP TO 481,088 WITH THE RISE IN THE COMEX GOLD PRICE/YESTERDAY’S TRADING (A GAIN IN PRICE OF $8.45).THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A VERY GOOD SIZED 7534 CONTRACTS: ALWAYS, ON THE WEEK PRIOR TO FIRST DAY NOTICE IN ANY ACTIVE MONTH WHETHER GOLD OR SILVER THE OI COLLAPSES.  IT IS HERE THAT THE MIGRANTS RECEIVE THEIR FIAT BONUS FOR ENGAGING IN THIS EXERCISE. WE HAD THE FOLLOWING EFP ISSUANCE FOR TODAY:

 

OCTOBER HAD EFP’S ISSUED AND, DECEMBER HAD AN ISSUANCE OF 7534 CONTACTS  AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 481,088. 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 OI GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 14.157 CONTRACTS:  6623 OI CONTRACTS INCREASED AT THE COMEX AND 7534 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN: 14,157 CONTRACTS OR  1,415,700 OZ = 44.03 TONNES. AND ALL OF THIS DEMAND OCCURRED WITH A RISE IN THE PRICE OF GOLD/ YESTERDAY TO THE TUNE OF $8.45.

 

 

 

 

YESTERDAY, WE HAD 8,309 EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF SEPT : 106,953 CONTRACTS OR 10,695,300 OZ OR 335.99 TONNES (12 TRADING DAYS AND THUS AVERAGING: 8.912 EFP CONTRACTS PER TRADING DAY OR 891,200 OZ/ TRADING DAY),,

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 12 TRADING DAYS IN  TONNES: 335.99 TONNES

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

THUS EFP TRANSFERS REPRESENTS 335.99/2550 x 100% TONNES =  13.17% OF GLOBAL ANNUAL PRODUCTION SO FAR IN JULY ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2018 TO DATE:     6,008.48*  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)

ACCUMULATION OF GOLD EFP FOR SEPT 2018                       470.64 TONNES   (19 TRADING DAYS)

 

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

Result: A CONSIDERABLE SIZED INCREASE IN OI AT THE COMEX OF 4981 WITH THE GAIN IN PRICING ($8.45) THAT GOLD UNDERTOOK YESTERDAY) //. WE ALSO HAD A GOOD SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 7534 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 7534 EFP CONTRACTS ISSUED, WE HAD A STRONG GAIN OF 12,515 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

7534 CONTRACTS MOVE TO LONDON AND 4981 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 38.92 TONNES). ..AND ALL OF THIS DEMAND OCCURRED WITH A GAIN OF $8.45 IN YESTERDAY’S TRADING AT THE COMEX.

 

 

we had: 30 notice(s) filed upon for 3000 oz of gold at the comex.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD UP $1.00 TODAY: / 

 

ANOTHER BIG CHANGE IN INVENTORY

 

ANOTHER BIG DEPOSIT OF: 4.12 TONNES  (NO DOUBT THAT THIS IS A PAPER GOLD ENTRY)

(THIS IS A GREAT SIGN THAT THE CROOKS ARE HAVING DIFFICULTY CONTAINING GOLD)

 

 

 

 

 

 

 

 

 

 

 

 

/GLD INVENTORY   748.76 TONNES

Inventory rests tonight: 748.76 tonnes.

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

SLV/

WITH SILVER DOWN 2 CENTS TODAY

NO CHANGES IN SILVER INVENTORY AT THE SLV

 

 

 

 

 

 

 

 

 

 

 

 

/INVENTORY RESTS AT 332.912 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 386 CONTRACTS from 199,552 DOWN TO 199,166  AND MOVING A LITTLE FURTHER FROM THE NEW COMEX RECORD SET LAST IN AUG.2018 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:

i) 120 EFP’s for November… and

 

1597 CONTRACTS FOR DECEMBER AND  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1717 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 386 CONTRACTS TO THE 1717 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A  NET GAIN OF 1051 OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 5.255 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..  A HUGE 39.505  MILLION OZ  STANDING FOR SILVER IN SEPTEMBER…AND NOW 1.805 million  OZ STANDING FOR THE NON ACTIVE MONTH OF OCTOBER.

 

 

RESULT: A DECREASE IN SILVER OI AT THE COMEX DESPITE THE 10 CENT PRICING GAIN THAT SILVER UNDERTOOK IN PRICING// FRIDAY.BUT WE ALSO HAD A GOOD SIZED 1717 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR SEPTEMBER, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

 

 

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i) TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 21.77 POINTS OR 0.85% //Hang Sang CLOSED UP 17.20 POINTS OR 0.07% //The Nikkei closed UP 277.94 OR 1.25%/ Australia’s all ordinaires CLOSED UP 0.50%  /Chinese yuan (ONSHORE) closed DOWN  at 6.9187 AS POBC RESUMES  ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER CANCELLED/Oil DOWN to 71.13 dollars per barrel for WTI and 80.14 for Brent. Stocks in Europe OPENED RED EXCEPT GERMAN DAX//.  ONSHORE YUAN CLOSED SLIGHTLY DOWN AT 6.9189 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED SLIGHTLY UP THE DOLLAR AT 6.9122: HUGE DEVALUATION/PAST SEVERAL DAYS RESUMES// TRADE TALKS STOPPED   : /ONSHORE YUAN TRADING WEAKER  AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

 

 

 

 

 

 

 

 

 

3A/NORTH KOREA/SOUTH KOREA

i)North Korea/South Korea/USA/

 

 

 

b) REPORT ON JAPAN

3 C/  CHINA

 

4/EUROPEAN AFFAIRS

i)ITALY

The war of words continue and yet Juncker states that the EU cannot survive without Italy and he is right.

(courtesy zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)SAUDI ARABIA
Pompeo takes a 12 hr flight to see King Salman of Saudi Arabia. The meeting lasts 15 minutes
It sure looks like some innocent underlings are going to take the fall for the murder
( zerohedge)
ii)TURKEY/SAUDI ARABIA
Supposedly Turkey finds evidence of the killing of Khashoggi inside the Saudi consulate

( zerohedge)

iii)It looks like this one is spiraling out of control”  Republican senators are threatening sanctions against Saudi Arabia
( zerohedge)

iv)the Saudi Prince MbS, totally denies knowledge of the killing and promises a complete investigation( zerohedge

 

6. GLOBAL ISSUES

 

This is good for gold:  Both China and Japan dumped treasuries. Saudi Arabia and Brazil were purchasers of the treasuries.

(courtesy zerohedge)

 

 

 

 

7. OIL ISSUES

 

 

8 EMERGING MARKET ISSUES

ZIMBABWE

 

 

 

 

9. PHYSICAL MARKETS

i)As explained below, the crypto markets are foiled as traders question tether’s dollar’s peg

( Bloomberg/GATA)

ii)This book will have dandy quotes as it exposes the crookedness of Goldman Sachs

( New York Post/Dugan/Carmen Segarra)

iii)Huge story:  Hungary which hardly had any gold to its credit, purchased 3.1 tonnes last month and now a stunning 28.4 tonnes to hold 31.5 tonnes an increase of 1000%.  Poland also increased its holdings by 4.4 tonnes but all of its gold is stored in London and you can bet the farm that it has all be leased out.

(courtesy Ronan Manley)

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

 

 

MARKET TRADING

 

ii)Market data

Another indicator to suggest that the USA economy is now faltering:  industrial production growth beats the street but slows to its weakest level since May

( zerohedge)

 

iii)USA ECONOMIC/GENERAL STORIES

 

iv)SWAMP STORIES

a)Tom Luongo on the upcoming midterm elections. Julian Assange now has internet connections. Luongo discusses what this means:

( Tom Luongo)

b)Project Veritas exposes Missouri Democrat McCaskill for hiding a true liberal agenda form moderate voters

( zerohedge)

c)Carter Page sues and me may get considerable unredacted stuff.  If justice is failed, will the 5 to 4 Supreme Court come into action

( zerohedge)

d)Have fun with this:  Trump will now go after both Stormy Daniels and her lawyer Avenatti
(courtesy zerohedge)
E)SWAMP STORIES/THE KING REPORT

Let us head over to the comex:

 

The total gold comex open interest ROSE BY A CONSIDERABLE SIZED 4981 CONTRACTS DOWN to an OI level 481,088 WITH THE RISE IN THE PRICE OF GOLD ($8.45 GAIN IN 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. ONCE WE GET TO FIRST DAY NOTICE, THEN THE OPEN INTEREST RISES AND AGAIN THEY DID NOT DISAPPOINT US.

 

 

WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF OCT..  THE CME REPORTS THAT THE BANKERS ISSUED A GOOD SIZED COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 7534 EFP CONTRACTS WERE ISSUED:

OCTOBER: 0 EFP’S AND DECEMBER:  7534 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  7534 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 12,515 TOTAL CONTRACTS IN THAT 7534 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED 4981 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES:  12,515 contracts OR 1,251,500 OZ OR 38.92 TONNES.

Result: A CONSIDERABLE SIZED INCREASE IN COMEX OPEN INTEREST WITH THE GAIN IN PRICE/ YESTERDAY (ENDING UP WITH THE RISE IN PRICE OF $8.45)THE  TOTAL OPEN INTEREST GAIN ON THE TWO EXCHANGES:  12,515 OI CONTRACTS..

We are now in the active contract month of OCTOBER. For the October contract month, we lost 159 contracts to fall to 1099 contracts.  We had 60 notices yesterday, so we lost 99 contracts or 9900 oz will not stand for delivery at the comex and these guys marched over to London as they received London based forwards on top of a fiat bonus for their hard work.

The next delivery month is the non active NOVEMBER contract month and here the OI FELL by 67 contracts down to 421.  The next delivery month after November is the very big December contract month and here the OI ROSE by 5842 contracts up to 379,187 contracts.

 

 

 

 

WE HAD 30 NOTICE FILED AT THE COMEX FOR 3000 OZ.

 

FOR COMPARISON BETWEEN LAST YR AND TODAY:

 

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. (VS 13.695 TONNES OCT 2018)

AT THE CONCLUSION OF THE OCTOBER/2017 TRADING MONTH: 333,300 OZ OR 10.367 TONNES FINALLY STOOD FOR DELIVERY

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total silver OI FELL BY 386 CONTRACTS FROM 199,552 DOWN TO 199,166 (AND FURTHER FROM  THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  (THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S  OI COMEX LOSS OCCURRED DESPITE A 10 CENT RISE IN PRICING.

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF OCTOBER AND, WE WERE  INFORMED THAT WE HAD A GOOD SIZED 1717 EFP CONTRACTS:  FOR NOVEMBER:  120 CONTRACTS AND FOR …

 

FOR DECEMBER: 1597 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: 1717.  ON A NET BASIS WE GAINED 1051 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A 386 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 1717 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN ON THE TWO EXCHANGES:   1051 CONTRACTS…AND ALL OF THIS DEMAND OCCURRED WITH A 10 CENT RISE IN PRICING YESTERDAY.

 

 

 

 

We are now in the non active delivery month of October and here we had a LOSS of 20 contracts to stand at 22 contracts.  We had 20 notices filed  YESTERDAY so we gained 0 contracts or NIL oz will stand for delivery at the comex as these guys refused to accept a London based forward plus as well as a fiat bonus 

 

After October, is the non active delivery month of November and here we GAINED 114 contracts up to 825 contracts.  After November, we have a December contract and here we LOST 795 contracts down to 159.592

 

 

 

 

 

 

 

 

We had 1 notice(s) filed for 5,000 OZ for the SEPTEMBER 2018 COMEX contract for silver

 

Trading Volumes on the COMEX

 

PRELIMINARY COMEX VOLUME FOR TODAY: 224,079 contracts,

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  300,505  contracts..

 

 

 

 

 

 

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  OCT/GOLD

OCT 16-/2018.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
 100.000 oz
Brinks
???
Deposits to the Dealer Inventory in oz NIL oz

 

Deposits to the Customer Inventory, in oz  

 

nil

 

oz

 

 

 

 

 

No of oz served (contracts) today
30 notice(s)
 3000 OZ
No of oz to be served (notices)
1069 contracts
(106900 oz)
Total monthly oz gold served (contracts) so far this month
944 notices
94400 OZ
2.9362 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

 

we had 0 dealer entry:

 

total gold entering dealer:  NIL oz

total gold withdrawing from the dealer;  NIL oz

 

we had 0 kilobar transaction/
we had 1 withdrawal out of the customer account:
i  Out of Brinks: 100.000 oz ???
total customer withdrawals:  100.000 oz
we had 0 customer deposit
total customer deposits: nil  oz
we had NIL adjustments

FOR THE OCTOBER 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 30 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 23 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 OCT/2018. contract month, we take the total number of notices filed so far for the month (944) x 100 oz or 100 oz, to which we add the difference between the open interest for the front month of OCT. (1099 contracts) minus the number of notices served upon today (30 x 100 oz per contract) equals 201,300 OZ OR 6.2612 TONNES) the number of ounces standing in this non active month of OCT

 

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

No of notices served (944 x 100 oz)  + {1099)OI for the front month minus the number of notices served upon today (30x 100 oz )which equals 201,200 oz standing OR 6.2612 TONNES in this active delivery month of OCTOBER.

 

We lost 99 contracts or 9900 oz of gold will not stand as these guys morphed into London based forwards and received a fiat bonus for their effort.  THE REASON THEY MORPHED TO LONDON IS BECAUSE THERE IS NO GOLD AT THE COMEX.

 

 

 

THERE ARE ONLY 4.411 TONNES OF REGISTERED COMEX GOLD AVAILABLE FOR DELIVERY AGAINST 6.2612 TONNES STANDING FOR OCTOBER  

 

 

 

total registered or dealer gold:  141,829.805 oz or   4.441 tonnes
total registered and eligible (customer) gold;   8,101,421.184 oz 251.98 tonnes

IN THE LAST 25 MONTHS 104 NET TONNES HAS LEFT THE COMEX.

LADIES AND GENTLEMEN: THERE IS NO GOLD AT THE COMEX..AS THE CROOKS SEEMS TO BE FORCING LONGS TO TAKE DELIVERY OF LONDON FORWARDS AND NOT TAKE POSSESSION OF ANY GOLD AT THE COMEX/

end

And now for silver

AND NOW THE AUGUST DELIVERY MONTH

OCTOBER INITIAL standings/SILVER

OCT 16 2018
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 1,313,321.23 oz
CNT
Scotia

 

 

Deposits to the Dealer Inventory
1,238,898.03
oz
Brinks
Deposits to the Customer Inventory
1,210,658.280
oz
CNT
JPM
No of oz served today (contracts)
1
CONTRACT(S)
5,000 OZ)
No of oz to be served (notices)
21 contracts
(105,000 oz)
Total monthly oz silver served (contracts) 340 contracts

(1,700,000 oz)

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

we had 1 inventory movement at the dealer side of things

i) Into Brinks: 1,238,898.03 oz

total dealer deposits: 1.238.898.03 oz

total dealer withdrawals: nil oz

we had 2 deposit into the customer account

i) Into JPMorgan: 610,237.200 oz

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

JPMorgan now has 143.721 million oz of  total silver inventory or 49.4% of all official comex silver. (143.6 million/289 million)

ii) Into  CNT:  600,421.080  oz

 

 

 

 

 

 

 

 

 

 

 

 

 

total customer deposits today: 1,210,658.280  oz

we had  2 withdrawals from the customer account;

i) Out of CNT 612,633.900 OZ

 

iii) Out of Scotia  700,687.330 oz

 

 

total withdrawals: 1,313,321.230 oz

 

 

we had 0 adjustments

 

 

 

 

 

 

 

 

 

total dealer silver:  75/351 million

total dealer + customer silver:  289.313  million oz

The total number of notices filed today for the OCTOBER 2018. contract month is represented by 1 contract(s) FOR 5,000 oz. To calculate the number of silver ounces that will stand for delivery in OCT., we take the total number of notices filed for the month so far at 340 x 5,000 oz = 1,700,000 oz to which we add the difference between the open interest for the front month of OCT. (22) and the number of notices served upon today (1 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the OCT/2018 contract month: 340(notices served so far)x 5000 oz + OI for front month of OCT (22) -number of notices served upon today (1)x 5000 oz equals 1,805,000 oz of silver standing for the OCT contract month.  This is a huge number of oz standing for an off delivery month.

We gained 0 contracts or an additional NIL oz will be standing at the Comex as these guys refused to morph into London based forwards on top of not receiving a fiat bonus .

 

 

 

 

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

ESTIMATED VOLUME FOR TODAY: 65,612 CONTRACTS  …

 

 

 

CONFIRMED VOLUME FOR YESTERDAY: 67,890 CONTRACTS..

 

 

YESTERDAY’S CONFIRMED VOLUME OF 67,890 CONTRACTS EQUATES TO 339 million OZ  OR 48.4% 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 FALLS TO -3.93% (OCT 16/2018)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -1/40% to NAV (OCT 16/2018 )
Note: Sprott silver trust back into NEGATIVE territory at -3.93%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 12.43/TRADING 11.86/DISCOUNT 4.60.

END

And now the Gold inventory at the GLD/

OCT 16/WITH GOLD UP BY ONLY $1.00/WE HAD ANOTHER 4.12 TONNES OF GOLD ADDED TO THE GLD/INVENTORY RESTS AT 748.76 TONNES

OCT 15/WITH GOLD UP $8.45/ANOTHER 5.65 TONNES OF GOLD WAS ADDED TO THE GLD INVENTORY/INVENTORY RESTS AT 744.64 TONNES

OCT 12/WITH GOLD DOWN $4.35/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 738.99 TONNES

OCT 11/WITH GOLD UP $35.20 TODAY: A HUGE PAPER GOLD INVENTORY GAIN OF 8.82 TONNES/INVENTORY RESTS AT 738.99 TONNES

OCT 10/WITH GOLD UP $2.65 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 730.17 TONNES

OCT 9/WITH GOLD UP $2.00 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 730.17

OCT 8/WITH GOLD DOWN $18.60 NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 730.17TONNES

OCT 5/WITH GOLD UP $3.75, WE HAD A BIG WITHDRAWAL OF 1.47 TONNES FROM THE GLD INVENTORY/INVENTORY RESTS AT 730.17 TONNES

OCT 4/WITH GOLD DOWN $1.90/WE HAD NO CHANGES IN GOLD INVENTORY AT THE GLD/731.64 TONNES

OCT 3/WITH GOLD DOWN $4.05, ANOTHER HUGE REMOVAL OF 6.18 TONNES

OCT 2 WITH GOLD UP $15.80 TODAY A HUGE WITHDRAWAL OF 8.35 TONNES

OCT 1…GOLD ADDS 3.94 TONNES TO THE GLDINVENTORY RESTS AT 746.17 TONNES

SEPT 28/WITH GOLD UP $8.90/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 742.23 TONNES

SEPT 27/WITH GOLD DOWN $10.90: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 742.23 TONNES

SEPT 26/WITH GOLD DOWN $6.05: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 742.23 TONNES

SEPT 25/WITH GOLD UP 0.75: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 742.23 TONNES

SEPT 24/WITH GOLD UP $3.20: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 742.23 TONNES

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

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

OCT 16.2018/ Inventory rests tonight at 748.76 tonnes

*IN LAST 478 TRADING DAYS: 184.42 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 378 TRADING DAYS: A NET 27.89 TONNES HAVE NOW BEEN REMOVED FROM GLD INVENTORY.

 

end

 

Now the SLV Inventory/

OCT 16/WITH SILVER DOWN 2 CENTS/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.912 MILLION OZ/

OCT 15/WITH SILVER UP 10 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.912 MILLION OZ/

OCT 12/WITH SILVER UP 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.912 MILLION OZ/

OCT 11/WITH SILVER UP 25 CENTS TODAY; NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.912 MILLION OZ/

OCT 10/WITH SILVER DOWN 7 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.912 MILLION OZ/

OCT 9/WITH SILVER UP 9 CENTS TODAY: NO CHANGE IN SILVER INVENTORY: SLV INVENTORY RESTS AT 332.912 MILLION OZ

OCT 8/WITH SILVER DOWN 33 CENTS, A GOOD SIZE WITHDRAWAL OF 563,000 OZ/INVENTORY RESTS AT 332.912 MILLION OZ.

OCT 5/WITH SILVER UP 5 CENTS, NO CHANGE IN SILVER INVENTORY AT THE SLV

OCT 4/WITH SILVER DOWN 9 CENTS/A WITHDRAWAL OF 1.316 MILLION OZ

OCT 3WITH SILVER FLAT, A GOOD INCREASE OF 1.879 MILLION OZ INTO INVENTORY

OCT 2 A HUGE CHANGE IN SILVER INVENTORY AT THE SLV/INVENTOR RESTS AT 332.912

OCT 1.NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 333.046 MILLION  OZ.

SEPT 28/WITH SILVER UP 41 CENTS, STRANGELY WE HAD A WITHDRAWAL OF .517 MILLION OZ AT THE SLV.INVENTORY RESTS AT 333.046 MILLION OZ/

SEPT 27/WITH SILVER DOWN 10 CENTS: A HUGE WITHDRAWAL OF 1.457 MILLION OZ AT THE SLV/INVENTORY RESTS AT 333.563 MILLION OZ/

SEPT 26/WITH SILVER DOWN 9 CENTS: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 335.020 MILLION OZ/

SEPT 25/WITH SILVER UP 16 CENTS: STRANGE!! A BIG CHANGE IN SILVER INVENTORY AT THE SVL: A WITHDRAWAL OF 1.645 MILLION OZ/.INVENTORY RESTS AT 335.020 MILLION OZ/

WITH SILVER DOWN ONE CENT TODAY: A HUGE DEPOSIT OF 1.692 MILLION OZ INTO THE INVENTORY OF THE SLV

INVENTORY RESTS AT 336.665 MILLION OZ/

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/

 

 

 

OCT 16/2018:

 

Inventory 332.912 MILLION OZ

LIBOR SCHEDULE AND GOFO RATES:

HUGE JUMP IN LIBOR AND GOFO RATES

YOUR DATA…..

6Month MM GOFO 2.32/ and libor 6 month duration 2.65

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

G0FO+ .33

 

 

XXXXXXXX

12 Month MM GOFO
+ 2.61%

LIBOR FOR 12 MONTH DURATION: 2.97

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.36

end

 

Major gold/silver trading /commentaries for  TUESDAY

GOLDCORE/BLOG/MARK O’BYRNE.

Poland Raises Gold Holdings to Record High in September – IMF

(Reuters) – Poland raised its gold holdings to the highest in at least 35 years, data from the International Monetary Fund showed on Monday.

The country increased its holdings by 4.4 tonnes from August to about 117 tonnes in September, a record, according to data going back to January 1983.

“We have a really exciting announcement coming this Thursday, learn more about it here…”

“While the exchange-traded funds (ETFs) were losing tonnage, the central banks were buying since they had to maintain domestic currency values against a rising dollar,” said George Gero, managing director at RBC Wealth Management.

“I think you will see that continuing. Central banks are trying to maintain some hold on their currencies by storing gold.”

Holdings of SPDR Gold, the largest gold-backed ETF, have registered declines of more than 4 million ounces since hitting a peak in late April as investors have preferred the safety of the U.S. dollar against a backdrop of rising interest rates and as a U.S.-China trade tussle unfolds.

The trade dispute and rising dollar have in turn weighed on emerging markets, with the Polish zloty declining more than 6 percent this year.

 

 

7_Key_Storage_Must_Haves_-_Copy.jpg

 

 

Avoid Digital & ETF Gold – Key Gold Storage Must Haves

 

 

 

 

 

News and Commentary

Poland raises gold holdings to record high in September – IMF (Reuters.com)

Gold hovers near 2-1/2 month high as investors seek safe haven refuge (Reuters.com)

Gold Rises To Near 3-month High (RTTNews.com)

West-Saudi tensions lift safe havens; world stocks slip (Reuters.com)

U.S. budget deficit jumps to $779 billion (MarketWatch.com)

Goldman Sachs’ seedy underbelly exposed in shocking tapes (NYPost.com)


Source: Bloomberg

How to avoid being ruined by nasty stockmarket surprises (MoneyWeek.com)

‘Great Depression’ Ahead? IMF Sounds Dire Warning (ATimes.com)

We Saw Similar Setups In 2000 & 2007 (ZeroHedge.com)

Oil Jumps After Saudi Official Floats “Trial Balloon” Op-Ed Envisioning “Oil Weapon” Devastation (ZeroHedge.com)

Last Week Was Just A Taste Of The Coming Gold Short Squeeze (SeekingAlpha.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA AM)

15 Oct: USD 1,233.00, GBP 937.70 & EUR 1,064.45 per ounce
12 Oct: USD 1,218.75, GBP 922.11 & EUR 1,052.15 per ounce
11 Oct: USD 1,201.10, GBP 910.31 & EUR 1,040.27 per ounce
10 Oct: USD 1,186.40, GBP 902.02 & EUR 1,033.00 per ounce
09 Oct: USD 1,187.40, GBP 910.26 & EUR 1,036.01 per ounce
08 Oct: USD 1,194.80, GBP 914.86 & EUR 1,040.67 per ounce

Silver Prices (LBMA)

15 Oct: USD 14.74, GBP 11.19 & EUR 12.71 per ounce
12 Oct: USD 14.60, GBP 11.04 & EUR 12.60 per ounce
11 Oct: USD 14.40, GBP 10.90 & EUR 12.45 per ounce
10 Oct: USD 14.38, GBP 10.92 & EUR 12.50 per ounce
09 Oct: USD 14.33, GBP 10.98 & EUR 12.51 per ounce
08 Oct: USD 14.47, GBP 11.10 & EUR 12.61 per ounce


Recent Market Updates

– Why It’s Worth Holding Gold Bullion in Your Portfolio
– Gold’s Best Day In 2 Years Sees 2.5 Percent Gain As Global Stocks Sell Off – This Week’s Golden Nuggets
– Gold Up 2.5 Percent As Global Stock Rout Spreads To Europe
– “Gold Is On The Cusp” Of An “Explosion Higher” As Stock and Tech “Crash Is Coming”
– Gold Bottoms As Gold Industry Consolidates and Weak Hands Capitulate
– 60 Charts For The (Last Few Remaining) Gold Bulls
– Poland and Australia Buy Gold As Global Property Bubble Bursts – This Week’s Golden Nuggets
– Brexit To Burst Dublin and London Property Bubbles? GoldCore Video
– Perth Mint’s Gold and Silver Bullion Coin Sales Soar In September
– “I’m Favouring Equities and Gold Over Bonds” – Stepek
– Poland Buys Gold For First Time In 20 years
– This Week’s Golden Nuggets – Central Banks, Goldman, Bank of America Positive On Undervalued Gold

Mark O’Byrne
Executive Director
 

 

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

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

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

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

(Andrew Maguire)

 Dear Harvey Organ,

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

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

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

https://t.me/kinesismoney

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

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

Kinesis Webinar

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

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

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

Kind Regards,

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

 

The following is self explanatory

(courtesy GATA/Chris Powell and Harvey Organ)

GATA asks bank regulator to check risks of gold futures maneuver

 

 Section: 

12:21p ET Sunday, June 10, 2018

Dear Friend of GATA and Gold:

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

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

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

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

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

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

* * *

May 5, 2018

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

Dear Comptroller Otting:

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

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

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

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

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

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

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

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

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

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

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

Sincerely,

CHRIS POWELL
Secretary/Treasurer

HARVEY ORGAN
Consultant

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

end

Finally, they replied and it was a complete brush off

(courtesy zerohedge)

Currency comptroller brushes off GATA’s inquiry on

gold,silver EFPs

 Section: 

11:35a ET Friday, August 10, 2018

Dear Friend of GATA and Gold:

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

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

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

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

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

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

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

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

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

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

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

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

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

END

As explained below, the crypto markets are foiled as traders question tether’s dollar’s peg

(courtesy Bloomberg/GATA)

Crypto markets roiled as traders question Tether’s dollar peg

 Section: 

By Andrea Tan, Eric Lam, and Benjamin Robertson
Bloomberg News
Monday, October 15, 2018

A sudden exodus from the most popular dollar-linked cryptocurrency rippled through digital asset markets on Monday, saddling some investors with losses while propelling Bitcoin to its biggest gain in more than three weeks.

Tether, the so-called stablecoin used as a substitute for the U.S. currency on crypto exchanges around the world, broke its historically tight link with the greenback, touching 85 cents on U.S.-based venue Kraken.

Transactions on Binance, one of the world’s most active platforms for Tether, recently implied a price of about 96 cents, according to CoinMarketCap.com. Bitcoin jumped as much as 8.9 percent to $6,769 as Tether holders shifted into alternative virtual currencies.

“If traders start to flee Tether, it’s a potentially precarious situation,” said Vijay Ayyar, head of business development at Luno, a cryptocurrency exchange. “It basically implies a lot of volatility ahead.” …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2018-10-15/dollar-peg-that-under…

end

This book will have dandy quotes as it exposes the crookedness of Goldman Sachs

(courtesy New York Post/Dugan/Carmen Segarra)

Goldman Sachs’ seedy underbelly exposed in shocking tapes

 Section: 

By Kevin Dugan
New York Post
Thursday, October 11, 2018

Fresh dirt has spilled at Goldman Sachs — and this time it has been caught on tape.

David Solomon, who took the helm of the Wall Street giant from Lloyd Blankfein last week, once blew off criticism of Goldman’s double-dealing in a big energy merger as a matter of “perception” — a cheeky dismissal that came despite a class-action lawsuit against the deal that eventually cost Goldman $20 million in fees

That’s among the cringeworthy quotes that Carmen Segarra claims she secretly recorded behind closed doors for her new book “Noncompliant: A Lone Whistleblower Exposes the Giants of Wall Street.”

The 340-page expose expands on her previous claims that Goldman Sachs has long exploited an improperly cozy relationship with Wall Street regulators. …

… For the remainder of the report:

https://nypost.com/2018/10/11/whistleblowers-new-book-shares-secret-tape…


* * *

end

Trouble with crypto currency “Tether”

(courtesy zerohedge)

Tether Tumbles Below Critical $1 Threshold As Dollar-

Pegged Crypto Doubts Soar

Update: Careful to quickly assuage any potential loss of the narrative and ‘full faith and credit’ of the ‘stablecoin’, Tether released a statement on USDT drop:

“We would like to reiterate that although markets have shown temporary fluctuations in price, all USDT in circulation are sufficiently backed by U.S. dollars (USD) and that assets have always exceeded liabilities.”

See, nothing to panic about.

*  *  *

The only cryptocurrency not rallying right now is the one pegged to the U.S. dollar.

The week started off green for cryptocurrencies like Bitcoin, Ripple, and Ethereum. Collectively, the three of them rose by about 7% according to a CNBC article out early Monday morning. Bitcoin came close to topping $7,000 again, but digital currencies remain in the midst of a longer-term downtrend that has continued over the last year.

This downtrend among all cryptos was exacerbated by the sharp moves lower in equity markets last week, which prompted billions of dollars of digital currency market cap to be wiped away. But Monday kicked off a new week and cryptos are all trying to bounce or pare their losses from last week (for now, at least).

Interestingly enough, the only crypto not participating in the early week rally is Tether, a digital currency that is pegged to the US dollar. Tether was trading 2.5% lower, down to $0.965, after falling much lower earlier in the morning.

This chart of the carnage, as it happened on the Kraken exchange, was posted at about 2AM EST on Monday morning by Twitter user @Bitfinexed. It shows Tether printing as low as $0.85:

The firm that runs the digital currency, Tether, Ltd., has recently been questioned about whether or not it holds enough “reserves” to match the amount of tokens in circulation. The company claims that it does.

Charles Hayter, the chief executive of comparison site CryptoCompare, told CNBC: “There is concern about Tether and whether it is truly backed by dollars and rumors about USDT (tether) being delisted from various exchanges.”

These delisting rumors probably aren’t helping quell volatility, either. This comes after one industry publicationclaims that Bitfinex, a cryptocurrency exchange connected to Tether, has suspended deposits in US Dollars, Euros, Sterling and Yen.

Mati Greenspan, senior market analyst at eToro, told CNBC: “If the perception that tether can hold a stable value is called into question, traders who are holding USDT are most likely to shift their funds into other cryptos in order to hold their value.”

The point of Tether isn’t necessarily to appreciate in value, but rather it is known as a “stablecoin” because it is supposed to, in theory, always trade around one dollar. The digital currency is seen as a way for those worried about the volatility of fiat-to-crypto exchange rates to ensure that they can reliably convert US dollars into digital currencies.

From there, Tether can be used to purchase other digital currencies like Bitcoin and Ethereum.

The question of whether or not Tether’s parent company holds enough in reserves is hardly the first controversy for the coin. We released a report days ago highlighting finance professor John Griffin, who, along with his doctoral student companion, Amin Shams, was one of the two academics that drew market-moving conclusions about bitcoin last year, while the digital currency was trading around $20,000. After sifting through 2 terabytes of trading data, they alleged that bitcoin was being manipulated by someone using Tether to purchase it.

To us, Tether seems like a counterintuitive idea in the sense that it is backed by Fiat, which is the main problem that Bitcoin initially seeked to solve. Forgive us if we are not surprised when the only digital currency that tries to be more like the dollar instead of less like it, winds up being one of the firsts to collapse. 

end
Huge story:  Hungary which hardly had any gold to its credit, purchased 3.1 tonnes last month and now a stunning 28.4 tonnes to hold 31.5 tonnes an increase of 1000%.  Poland also increased its holdings by 4.4 tonnes but all of its gold is stored in London and you can bet the farm that it has all be leased out.
(courtesy Ronan Manley)

Hungarian Central Bank Stuns, Announces 10-Fold Jump

In Gold Reserves

Submitted by Ronan Manly, Bullionstar.com,

In one of the most profound developments in the central bank gold market for a long time, the Hungarian National Bank, Hungary’s central bank, has just announced a 10 fold jump in its monetary gold holdings. The central bank, known as Magyar Nemzeti Bank (MNB) in Hungarian, made the announcement in Budapest, Hungary’s capital.

The details of Hungary’s dramatic new gold purchase are as follows:

  • Before this month, Hungary’s central bank held 3.10 tonnes of gold.
  • During the first two weeks of October, the Hungarian National Bank purchased 28.4 tonnes of gold.
  • This gold purchase raised the central bank’s gold holdings from 3.1 tonnes to 31.5 tonnes, i.e. a 1000% or 10-fold increase.
  • The Hungarian central bank had not altered its gold reserves since 1986, i.e. 32 years ago.
  • The 28.4 tonnes of gold was purchased in ‘physical form’, and ‘its repatriation has already taken place‘ to Hungary.
  • Interestingly, Hungary now holds the same amount of gold as it held 70 years ago.

Some of the newly purchased gold bars of the Hungarian central bank. This gold has also been repatriated to Hungary.

In conjunction with today’s announcement in Budapest, the Hungarian National Bank put together a very interesting press release on its website (in Hungarian), which I have translated and edited, and which I think is worth reading in its entirety. Therefore, I have replicated it below, adding some bold and underlining in places. The press release is as follows:

“Budapest, October 16, 2018 – In view of the long-term national and economic strategy goals, the Monetary Council of the National Bank of Hungary has decided to increase the gold reserves of the country.

As a result, in October 2018 the Bank’s precious metal holdings were raised from the previous 3.10 tonnes to 31.5 tonnes, a tenfold increase.

This is the first time that the Hungarian National Bank has bought gold since 1986.

Following the substantial increase in the Bank’s gold reserves in physical form, its repatriation has already taken place. The possession of precious metal within the country is in line with international trends, supports financial stability and strengthens market confidence in Hungary.

In keeping with the historical role of gold, gold remains one of the safest instruments in the world, and, even under normal market conditions, provides a stability and confidence-building function.

With current holdings of 31.5 tonnes gold reserves, valued at approximately $ 1.24 billion, this size of holdings approaches the historical level that was held by our country at the time of the “golden train”. Within the overall international reserves of the Bank, the share of gold reserves has now risen to 4.4%, which corresponds to the average of non-euro area Central and Eastern European countries.

The role of gold reserves in the nation and in the nation’s economy strategy is becoming more and more appreciated while both the possession and the increase of nations’ precious metals holdings appears to be decisive international trends.

This gold purchase process, based on the strategic decision of the Hungarian National Bank, has increased the domestic gold reserves to 31.5 tonnes. The raising of the gold reserve and the returning of the gold in physical form to Hungary took place in the first half of October 2018.

Increasing and repatriating gold reserves can be considered a significant step in economic history. Since the founding of the Hungarian National Bank in 1924, gold reserves have been maintained, but the stock of that gold has fluctuated considerably over the decades, depending on the purpose of why it was held.

At the end of World War II, Hungary received some 30 tonnes of gold bars and gold coins on the MNB’s legendary “gold train” in the Spital am Pyhrn in Austria. This amount was fully returned to the country after the war while providing cover for the introduction of the new currency of the country, the Forint, thus supporting financial consolidation and the stabilization of the post-war Hungarian economy.

At the end of the eighties, Hungary’s gold reserves, driven by short-term investment objectives, fluctuated between 40 and 50 tons and then, at the time of the change of regime (between 1989 and 1992), the ruling central bank executives decided to reduce to a minimum level of about 3.1 tons, which was the level at the end of September 2018.

With the decision of the MNB today in October 2018, the holdings of 31.5 tonnes of gold reserves is now the same as the level of the stabilization period of 1946.

Gold reserves are held for short-term investment and / or long-term stability purposes by national central banks. The current decision of the Hungarian National Bank was led by the goal of stability, and there are no investment concerns behind the holding of gold reserves.

Gold is not only for extreme market environments, structural changes in the international financial system, and deeper geopolitical crises. Gold also has a confidence-building effect in normal times, that is, gold can play a role in stabilizing and defending.  

Gold is still considered to be one of the world’s safest assets, whose characteristics can be attributed to gold’s unique properties such as finite supply of physical gold, and lack of credit and counterparty risk given that gold is not a claim against a specific partner or country.

Over the past few years, more and more countries have decided to continue to play a decisive role in the use of gold as a traditional reserve asset, and have raised their gold reserves. This course of action was followed by Poland [a neighbor of Hungary], in spite of the fact that Poland had already one of the highest gold reserves in the region.

When raising domestic gold reserves to 31.5 tonnes, the MNB also paid attention to the international and regional role played by gold in central bank reserves. As a result, the Hungarian gold reserve have now increased to 4.4% which is in line with average international reserve ratio for gold for the Central Eastern European region central banks. This move from the end of the international rankings to the middle of the rankings has progressed, both in terms of size and proportion of gold reserves.

On the occasion of the announcement, the National Bank of Hungary has also published a “Golden Book”, which gives an insight into decisive historical periods of Hungary’s gold, such as centuries of golden coins, the rescue of our national treasures by gold trains, and the recent homecoming of the country’s gold reserves.”  [end of press release]

Note that Hungary is a member of the European Union (EU), and therefore the Hungarian National Bank is a member of the European System of Central Banks (ESCB). However, as Hungary is not a member of the Eurozone and does not use the Euro, the Hungarian National Bank is not a member central bank of the European Central Bank (ECB). With Hungary recently under attack from the European Parliament in September, the timing of this new gold purchase by Hungary’s central bank in early October is very interesting, to say the least.

Magyar Nemzeti Bank (MNB)

Poland, Austria, Germany, Netherlands, and now Hungary

In addition to this new Hungarian gold purchase, Reuters is reporting that updated data from the IMF shows that Poland continued to increase its gold purchases in September 2018, raising its gold reserve holdings by 4.4 tonnes during the month to 117 tonnes. This follows similar gold purchases that the Polish central bank made in the summer, when the bank bought two tonnes of gold in July and seven tonnes of gold in August.

With almost all of Poland’s gold held at the Bank of England, a relevant question now is how long before Poland also sees fit to repatriate its gold in physical form away from the fractionally-backed LBMA controlled gold trading centre of London. Another of Hungary’s close neighbors, Austria, has itself spent the last 3 years repatriating 140 tonnes of its gold from the Bank of England in London and has nearly completed this repatriation operation now.

Add to this the high-profile Germany Bundesbank gold repatriation program in recent years, and a similar gold repatriation exercise from the Netherlands central bank, and the trend is clear: central banks in Europe have been flocking to shore up their international reserves with gold, because, as in the words of the Hungarian central bank “Gold is still considered to be one of the world’s safest assets”.

_________________________________________________________________________________________________

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

i) Chinese yuan vs USA dollar/CLOSED DOWN TO 6.9189/HUGE DEVALUATION FOR THE PAST FOUR WEEKS RESUMES/CHINESE COMING TO USA FOR TRADE TALKS IN NOVEMBER CANCELLED //OFFSHORE YUAN:  6.9122   /shanghai bourse CLOSED DOWN 21.77 POINTS OR 0.85%

. HANG SANG CLOSED UP 17.20 POINTS OR 0.07%

 

2. Nikkei closed UP 277.94 POINTS OR 1.25%

 

3. Europe stocks OPENED  IN THE GREEN EXCEPT LONDON FTSE

 

 

/USA dollar index RISES TO 95.03/Euro FALLS TO 1.1579

3b Japan 10 year bond yield: RISES TO. +.15/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 112.01/ 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:: 71.13 and Brent: 80.14

3f Gold UP/JAPANESE Yen DOWN/ CHINESE YUAN:   ON SHORE DOWN/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 DOWN for WTI and DOWN FOR Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO +.50%/Italian 10 yr bond yield UP to 3.46% /SPAIN 10 YR BOND YIELD DOWN TO 1.66%

3j Greek 10 year bond yield FALLS TO : 4.28

3k Gold at $1229.30 silver at:14.77   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 41/100 in roubles/dollar) 65.65

3m oil into the 71 dollar handle for WTI and 80 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 112.01DESTROYING 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 0.9878 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1442 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 +0.50%

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 3.17% early this morning. Thirty year rate at 3.35%

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

6.  TURKISH LIRA:  UP  TO 5.7889

Global Markets Rebound As Calm Returns Ahead Of

Earnings Deluge

Profile picture for user Tyler Durden

European stocks rose thanks to a rebound in Italian assets, following a green session for Asian markets despite China closing red for the third day, as U.S. equity index futures rose 0.4% after a negative session yesterday and ahead of today’s earnings deluge.

U.S. equity futures pointed to a firmer open as Netflix becomes the first large technology company to report results after today’s close, while Goldman and Morgan Stanley wrap up earnings for the big banks.

In Asia, Japan’s equities outperformed, with Hong Kong and Chinese shares retreating again.

“A key concern has been the combined sell-off in equities and bonds, which has weighed on multi-asset portfolios, similar to February,” Goldman strategists wrote in a late Monday note. “At one point the initial sell-off in equities and bonds led to one of the worst periods for simple risk parity strategies since the GFC (Great Financial Crisis). Also the shift in momentum that occurred on Wednesday last week was the largest daily shift in U.S. equity momentum since 2011 by some measures.”

The timid bounce we experienced yesterday which faded all gains into the close has failed to convince traders that markets are ready to break out of the 2750-2800 “gamma gravitation” for the S&P. Volumes were low with the market needing more conviction and traction to take out important resistance levels.  Additionally, credit markets have shown little signs of reassurance so far, with Europe’s Itraxx Europe still trading near the highs of the past three days.

The yen declined, while the dollar edged up from close to a two-week low ahead of a U.S. Treasury currency-manipulation report expected this week.

The Stoxx Europe 600 Index rallied, and pulled away from Monday’s 22-month lows led by Italian shares which rallied after the government reached an agreement on a budget accord, even though EU President Jean-Claude Juncker said the Eurozone would revolt if the EU gives an OK to Italy’s budget. Gains in Italy’s bond and stock markets after Italian Economy Minister Giovanni Tria defended the country’s expansionary budget helped lift sentiment. The euro also firmed. Stock market sentiment in Europe also got a boost from expectations that earnings season will deliver double-digit earnings growth for the third quarter.

“If you look at what’s happening here and now, it is an improvement from what was happening a week ago,” Alexandrovich said. “How long the stability lasts is anyone’s guess.”

Overall sentiment in Europe remains downbeat, however, with 42% of the Stoxx Europe 600 members in oversold territory, while more than a third have been oversold for three days, which Bloomberg notes should have triggered a stronger bounce.

Italian government bond yields fell as much as 12 basis points across the curve, narrowing the spread over German peers, after Italian Economy Minister Giovanni Tria defended the country’s deficit-hiking budget.

“The most important reason (for the drop in yields) is that Tria is continuing to stick to the government and defending the budget,” said DZ Bank strategist Christian Lenk. “This is taken positively by the market.”

The situation between the U.S. and the Kingdom of Saudi Arabia about the disappearance of journalist Jamal Khashoggi seems to have eased a bit with the kingdom cooperating with the Turkish authorities. Press reports suggested Saudi Arabia may admit the journalist died during a botched investigation at its embassy in Istanbul and blame rogue operatives. Nevertheless, U.S. President Donald Trump said he is uncertain if his administration will participate in a Saudi investment conference. As a result, Brent faded the recent move higher, trading around $80. Investors in aircraft manufacturers and defense contractors such as Airbus and BAE are keeping a close eye on the situation.

In Germany, investor optimism slumped back in October after a two-month uptick, with the Zew Economic Sentiment sliding to -24.7 from -10.6, below the -12.0 expected.

Italy managed to agree on a budget at the last minute and submitted it to the EU for review as Finance Minister Giovanni Tria denied any talk of stepping down. The budget is set to see a deficit of 2.4%, as disclosed previously. Following in Italy’s footsteps, Spain’s Socialist government is sticking to its pledge to widen its deficit targets in 2019.

While the bid for haven assets appears to have ebbed, caution is still on display as investors look for any signal from corporates hinting at a slowdown or stronger growth that could affect the pace of Federal Reserve rate hikes. Earnings from Goldman Sachs Group, Morgan Stanley and Netflix are all due Tuesday, while minutes from the latest Fed meeting should offer more clues a day later. In the background, traders are still grappling with continuing U.S.-China trade war rhetoric and geopolitical strains.

Cyclical stocks have done less well than defensive shares, which are seen holding up better during economic slowdowns – since the summer. Over the same period, robust U.S. data contributed to a slide in Treasuries. According to Citi, that divergence is unlikely to last, Bloomberg reports.

Brexit remains firmly planted in the headlines, with European Council President Donald Tusk saying a no-deal Brexit is more likely than ever before to EU leaders ahead of their summit Wednesday. In contrast, Theresa May and Emmanuel Macron struck a positive tone. The pound is steady at $1.315. The Turkish lira was steady following seven days of gains after the country released U.S. pastor Andrew Brunson on Friday.

There was some focus was on the U.S. Treasury’s semiannual currency report due later in the day, with investors waiting to see Washington’s view on China after media reports last week that it has not labeled Beijing a currency manipulator.

Elsewhere, gold is little changed while base metals are weaker, lead by copper down 1.4%. This may have an impact on miners which showed resilience in October.

Expected data include industrial production and capacity utilization. BlackRock, Goldman Sachs, J&J, Morgan Stanley, IBM, and Netflix are among companies reporting earnings.

Market Snapshot

  • S&P 500 futures up 0.4% to 2,759.25
  • STOXX Europe 600 up 0.3% to 360.48
  • MXAP up 0.5% to 153.22
  • MXAPJ up 0.4% to 481.62
  • Nikkei up 1.3% to 22,549.24
  • Topix up 0.7% to 1,687.91
  • Hang Seng Index up 0.07% to 25,462.26
  • Shanghai Composite down 0.9% to 2,546.33
  • Sensex up 0.8% to 35,139.58
  • Australia S&P/ASX 200 up 0.6% to 5,869.88
  • Kospi unchanged at 2,145.12
  • German 10Y yield rose 0.6 bps to 0.509%
  • Euro up 0.09% to $1.1589
  • Italian 10Y yield fell 3.1 bps to 3.172%
  • Spanish 10Y yield fell 1.3 bps to 1.666%
  • Brent futures down 0.5% to $80.34/bbl
  • Gold spot up 0.2% to $1,229.21
  • U.S. Dollar Index little changed at 95.09

Top Overnight News from BBG

  • President Donald Trump said he’s uncertain whether his administration will participate in a Saudi investment conference as CNN said the kingdom is preparing a report saying Jamal Khashoggi died as the result of an interrogation that went wrong.
  • U.K. Prime Minister Theresa May struck a conciliatory tone on Brexit a day after negotiations broke down, as she joined her French counterpart in calling for cool heads to prevail
  • The topic of foreign-exchange rates isn’t usually a part of trade negotiations, says Japan’s finance minister Taro Aso following comments from his U.S. counterpart Steven Mnuchin that the U.S. wants a currency clause in a trade agreement with Japan.
  • Australia’s central bank said a weaker currency is likely helping economic growth, while reinforcing its message that interest rates will remain unchanged, according to minutes of its October policy meeting released in Sydney Tuesday
  • New Zealand inflation picked up in the third quarter amid higher fuel prices and construction costs. The underlying pace excluding one-offs is closer to 0.5% q/q, so the meaningful surprise for the RBNZ is minimal,” said Sharon Zollner, chief economist at ANZ Bank New Zealand in Auckland
  • The U.S. budget deficit grew to $779 billion in Donald Trump’s first full fiscal year as president, the highest since 2012 amid tax cuts and spending increases. The budget gap for the 12 months through September was 17 percent wider than the same 12-month period a year earlier
  • Acting Swedish Prime Minister Stefan Lofven was given the chance to form a government to extend his rule after the opposition failed to find a viable coalition following almost two weeks of talks
  • Italy’s fractured coalition government cobbled together a last-minute budget accord that starts delivering on costly election promises but risks a confrontation with Brussels over European Union fiscal rules. The helped Italian assets – two-year notes led gains across the curve while stocks rose for a second day.
  • China’s local governments may have accumulated $5.8 trillion of off-balance sheet debt, or even more, suggesting further defaults are in store, according to S&P Global Ratings. “The potential amount of debt is an iceberg with titanic credit risks,” the report released Tuesday said.

Asian equity markets partially shrugged-off the US tech-led losses and traded mostly higher as focus shifted on earnings updates. ASX 200 (+0.5%) was led by mining names after the recent strength in gold prices and with Rio Tinto shares supported following its Q3 production update in which iron ore shipments declined Y/Y but the Co. affirmed FY18 shipments at the upper end of its guidance range. Elsewhere, Nikkei 225 (+0.6%) and Japanese exporters coat-tailed on favourable currency moves, while Shanghai Comp. (-0.2%) and Hang Seng (-0.4%) initially conformed to the upbeat tone as participants brushed aside continued PBoC liquidity inaction and took encouragement from the numerous corporate positive profit alerts, although Chinese bourses then failed to sustain the gains and gradually slipped into negative territory. Finally, 10yr JGBs were lower as they tracked weakness in T-notes, with prices also subdued by the improved risk tone in Japan and reduced demand at the 5yr JGB auction.

Top Asian News

  • Tycoon Piramal Said to Mull $1 Billion Contract Pharma Sale
  • China Ditches Deleveraging, Posing Yuan Hit, Citigroup Says
  • Yuan Will Weaken to 7 in 2018 and Go Lower in 2019, UBS Says
  • China May Have $5.8 Trillion in Hidden Debt With ‘Titanic’ Risks
  • China’s Forced Stock Sales Make a Bad Year Worse for Shenzhen

Most major European indices (ex-FTSE 100) are in the green, with Italy’s FTSE MIB (+1.1%) outperforming its peers amid signals the Italian government is working together after the budget was approved by Parliament. Meanwhile, the UK benchmark is pressured by a firmer currency along with heavy-weight mining names following price action in the complex. Sectors are mixed, with utilities names outperforming while energy names lag given the recent slump in oil prices.

In terms of individual stocks, Volvo shares fell over 5% after the detection of premature degradation of emission control components. On the flip side, Drax Group are up by over 4.5% after the company acquired a UK power generation portfolio with a proposed deal for GBP 702mln, while Altice share rose 5% following commentary that Co. has Mirova, Macquaries and KKR as frontrunners for a fibre JV.

Top European News

  • May and Macron Strike Dovish Tone Before High-Wire Brexit Summit
  • Drax to Buy U.K. Plants From Iberdrola in Shift Away From Coal
  • TomTom’s Volvo Deal Ends, Casting Shadow Over Guidance
  • U.K. Wages Increase at Fastest Pace in Almost a Decade

In FX, the GBP derived enough momentum from higher than forecast UK average earnings to breach 1.3200, albeit briefly amidst ongoing Brexit fall-out from the failure to clinch an agreement in time for this week’s EU summit that in turn was a prerequisite for another one in November to finalise a withdrawal deal. CAD/EUR/AUD were all narrowly mixed vs the Greenback, as the DXY continues to pivot 95.000, with the Loonie rebounding from recent 1.3000+ lows after a somewhat mixed BoC business survey on Monday (are rather redundant given that it was conducted pre-USMCA), while the single currency stalled around 1.1600 again and hampered by downbeat ZEW investor sentiment readings. Eur/Usd is just holding above 1.1565 lows, but could be drawn towards hefty option expiries at the 1.1550 strike (1.3 bn ahead of the NY cut). Elsewhere, the Aud did not get any independent support from RBA minutes largely sticking to a neutral stance, but has been caught in the cross-fire from relative Nzd outperformance as that pairing retreats through 1.0900 and 1.0850, plus ‘strong’ technical support between 1.0860-35 along the way. JPY/CHF: A reversal in fortunes for the safe-havens as Asia-Pac stocks put in a relatively resilient performance after recent heavy declines and with Usd/Jpy rebounding off a Fib (111.60) to trade back over 112.00, albeit now running in to decent supply said to be layered all the way up to 112.50. Note also, some big expiry interest containing the pair, with 3.1 bn from 111.60-75 and 1.3 bn at 112.50-65. The Franc has retreated from just shy of 0.9850 to meander within a 0.9900-0.9865 range.

In commodities, WTI and Brent are both lower by over 0.5% with the prices approaching USD 70.00/bbl and USD 80.00/bbl to the downside respectively in anticipation of an increase in U.S inventories, where the EIA noted shale oil output is expected to rise to a record 7.7mln BPD in November. Traders will be keeping an eye on the weekly API crude inventory data released later  today and any developments in Saudi in regards to the missing journalist. Gold is marginally higher in a continuation of market risk aversion as investors seek the yellow metal; with prices pivoting near two-and-a-half month highs. Elsewhere, copper slid 1.5% with the red metal facing its biggest one-day loss in over a week as escalating US-Sino trade tensions weighed on sentiment and demand outlook. Meanwhile, steel demand forecasts from WorldSteel have doubled for both 2018 and 2019, although trade tensions mean that industry risks remain. Finally, Chinese rebar futures pulled back from near-four-week highs, while analysts noted that steel prices in China will remain supported by the country’s resolve to reduce excess and outdated capacity.

On today’s calendar, we get September industrial production, capacity utilization and manufacturing production along with the October NAHB housing market index and August Jolts job openings and total net TIC flows. Away from data, the EU European Affairs ministers are expected to sign off on the draft of the Brexit summit conclusions and Italian Prime Minister Giuseppe Conte will address the lower house of parliament. Morgan Stanley, Goldman Sachs, Blackrock, Johnson & Johnson, IBM, CSX and Netflix will report earnings.

US Event Calendar

  • 9:15am: Industrial Production MoM, est. 0.2%, prior 0.4%; Manufacturing (SIC) Production, est. 0.2%, prior 0.2%
    • Capacity Utilization, est. 78.2%, prior 78.1%
  • 10am: NAHB Housing Market Index, est. 66, prior 67
  • 10am: JOLTS Job Openings, est. 6,900, prior 6,939
  • 4pm: Total Net TIC Flows, est. $60.3b, prior $52.2b; Net Long-term TIC Flows, prior $74.8b

DB’s Jim Reid concludes the overnight wrap

After the excitement of the last couple of weeks, yesterday was surprisingly quiet in markets leaving plenty of room for Brexit to be a focal point. After Sunday’s negativity on the state of progress between the two sides, UK PM May addressed the House of Commons for an update on where we stand. To be fair, she was relatively upbeat vs the tone of the prior 24 hours and was confident that progress was being made. Even French President Macron (a hardliner on Brexit) was relatively dovish on the state of talks when questioned yesterday. Not all hopes are seemingly lost ahead of this week’s EU leaders Brexit summit. However, as our economists laid out in a note yesterday, Mrs May is still trying to “solve the unsolvable” with regards to Northern Ireland. Without getting too bogged down in the technicals (feel free to read it in the note), the differences are over the backstop to the backstop and solving for the EU, the DUP, honouring the result of the referendum and the Conservative Party’s hard Brexiteers.

In their note, our strategists believe that PM May will stretch the negotiation timeline to the limit in a bid to create maximum time pressure to pass a deal through Parliament. Nevertheless, they think that the market is underpricing the risk of a near-term political crisis – either a leadership challenge from Brexiteers or a breakdown in the DUP/Conservative political agreement. They argued last week that the market is pricing a minimal probability of a no deal outcome. While they still anticipate a deal being ratified by the UK parliament by year-end, the risk that they are wrong is greater than current market pricing suggests.

Turning to yesterday’s market action, equities mostly retreated – despite the lack of substantive news – and retraced most of their Friday gains. The S&P 500, DOW, and NASDAQ fell -0.59%, -0.35%, and -1.24%, respectively, as investors rotated into defensive sectors. US Consumer staples and utilities outperformed, gaining +0.60% and +0.35%, while cyclical sectors continued to underperform. Emerging markets in aggregate, which outperformed last week, fell -1.07% though EM FX continued its strong run, gaining +0.47% versus the dollar. European indexes mostly gained, with the Euro Stoxx index up +0.10%. The DAX (+0.78%) outperformed while the CAC (-0.02%) lagged behind. Italian equities gained +0.24%.

Bond yields were little changed yesterday, with the 10y Treasury yield falling -0.9bps and the 10y Bund up +0.5bps. The US Treasury announced that the FY2018 budget came in at $779bn, its widest level since 2012, but marginally smaller than the CBO’s projections 6 months ago. Our rates strategists continue to expect a big increase in the deficit and in new Treasury issuance over the next two years. Italian spreads to bunds tightened -3.6bps ahead of their official budget decision.

This morning in Asia markets are trading mixed with Nikkei (+0.23%) and Kospi (+0.04%) up while, Hang Seng (-0.23%) and Shanghai Comp (-0.15%) are down. Elsewhere, futures on S&P 500 (+0.25%) are slightly higher. Overnight, China’s September CPI was in line with consensus at +2.5% yoy, the highest gain since February while PPI came in a shade higher than consensus at +3.6% yoy (vs. +3.5% yoy expected).

Italy finalized their budget plan last night and submitted it to the European Commission, as expected. The rhetoric from politicians was mixed, with Prime Minister Conte trying to assuage market concerns by asserting that Italy is keeping its “accounts in order.” On the other end of the spectrum, Deputy Prime Minister Salvini said he does not feel bound by the EU deficit rules. This sets the stage for a confrontation between Rome and Brussels, as the European Commission can declare Italy’s budget as non-compliant and demand changes over the next two weeks. Our economists think this type of confrontation is likely, and will likely require some sort of market or political pressure to force Italian policymakers to change tack. As long as the financial stress remains confined to the BTP market, the Commission is unlikely to bend either.

In other news, oil prices have spent the last 36 hours responding to the latest headlines from Saudi Arabia. In early trading yesterday prices were +1.85% higher as investors focused on the US-Saudi Arabia tensions related to the alleged murder of dissident journalist Khashoggi. Forwards on Saudi Arabia’s currency – which is pegged to the dollar – moved to price in a possible devaluation, as investors weighed the possibility that the US deploys sanctions against Saudi officials. Oil eventually retraced most of its gains (WTI oil prices closing +0.62%) as the US President didn’t escalate things further and suggested the Saudi king wasn’t involved. However, the US have said they are yet to decide whether to send a representative to the upcoming Saudi investment meeting. After the close, CNN reported that the Saudis were preparing to declare that the journalist died in a botched interrogation without official sanction. Oil is back up around 0.5% this morning.

Economic data in the US was mixed yesterday, as headline September retail sales printed at 0.1% mom (versus 0.6% expected) and the control group printed at 0.5% mom (versus 0.4%). The control group is an input into the GDP print, so it’s a bit more impactful than the headline reading. Separately, the New York Fed’s October Empire Manufacturing survey – the first such survey for the fourth quarter – printed at 21.1 (versus 20.0). Its qualitative description of the economy was strong, though price pressures “edged down” on the month. Finally, Bank of America reported third quarter earnings, with slightly softer-than-expected net income as loans dropped a bit. The bank’s stock fell -1.35% on the session, underperforming the US banks index.

Today, we see Italy’s August industrial sales and final September CPI, the UK’s September claimant count rate and the August employment report, the Euro area’s August trade balance and October ZEW survey of expectations and, Germany’s October ZEW current situation and expectations survey. In the US, we get September industrial production, capacity utilization and manufacturing production along with the October NAHB housing market index and August Jolts job openings and total net TIC flows. Away from data, the EU European Affairs ministers are expected to sign off on the draft of the Brexit summit conclusions and Italian Prime Minister Giuseppe Conte will address the lower house of parliament. Morgan Stanley, Goldman Sachs, Blackrock, Johnson & Johnson, IBM, CSX and Netflix will report earnings.

 

 

3. ASIAN AFFAIRS

i) TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 21.77 POINTS OR 0.85% //Hang Sang CLOSED UP 17.20 POINTS OR 0.07% //The Nikkei closed UP 277.94 OR 1.25%/ Australia’s all ordinaires CLOSED UP 0.50%  /Chinese yuan (ONSHORE) closed DOWN  at 6.9187 AS POBC RESUMES  ITS HUGE DEVALUATION  /DELEGATION COMING TO THE USA TO SEE TRUMP IN NOVEMBER CANCELLED/Oil DOWN to 71.13 dollars per barrel for WTI and 80.14 for Brent. Stocks in Europe OPENED RED EXCEPT GERMAN DAX//.  ONSHORE YUAN CLOSED SLIGHTLY DOWN AT 6.9189 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED SLIGHTLY UP THE DOLLAR AT 6.9122: HUGE DEVALUATION/PAST SEVERAL DAYS RESUMES// TRADE TALKS STOPPED   : /ONSHORE YUAN TRADING WEAKER  AGAINST OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

3 a NORTH KOREA/USA

 

North Korea/South Korea/USA/China

3 b JAPAN AFFAIRS

 
END

3C CHINA

 

4.EUROPEAN AFFAIRS

ITALY

The war of words continue and yet Juncker states that the EU cannot survive without Italy and he is right.

(courtesy zerohedge)

Juncker Warns ‘The EU Cannot Survive Without Italy’

Ignoring warnings from the European Commission, the ECB and the European Commission (as well as practically every other supranational organization in Europe), the populist-led Italian government managed to submit their draft budget to the Commission before a midnight deadline – an outcome that was cheered by BTP traders, who bought back into Italian bonds, once again compressing the spread to bunds, which has blown out in recent months.

But rather than representing a deescalation of tensions between Italy and Brussels, the game of fiscal chicken in which both sides are presently engaged is instead entering its most acute phase, as Brussels now has two weeks to review the budget proposal before it can either accept the plan, or send it back with requests for revisionsAnd anybody who has been paying even passing attention to the populist government’s denigration of EU budgetary guidelines over the past few months should already understand that Brussels won’t just sit back and accept the budget for what it is.

Juncker

In fact, European Commissioner Jean-Claude Juncker hinted as much Tuesday morning when he told Italian reporters that accepting the budget would be tantamount to inviting an widespread revolt against the EU, per Italian newswire ANSA and the FT. Juncker also blasted Italy for abandoning the fiscal commitments it made when it joined the EU. However, though they have wavered from time to time, the Italians haven’t kept their intentions to press for a budget deficit equivalent to 2.4% of GDP a secret. Even Giovanni Tria, Italy’s economy minister, defended the draft budget, saying the deficit “would be considered normal in all Western democracies, not explosive.”

Undeterred by the fact that there’s absolutely no political will in the Italian government to back down from their budget stance, despite threats from the ECB to provoke a Greece-style banking crisis if the Italians don’t yield to EU rules.

“There is a gap between what was promised and what is being presented today,” said Mr Juncker.

“We are going to have a virtuous debate with our Italian friends who know that their level of public debt is too high and that the draft budget does not fully respect the recommendations of the eurozone ministers.”

“If we accepted the slip, some European countries would cover us with insults and tirades with the accusation we are being too flexible with Italy,” Juncker told Italian media.

Meanwhile, Italian Deputy Prime Minister Matteo Salvini, one of two party chiefs who are effectively running the country, said during a news conference that this budget “doesn’t accomplish miracles, it doesn’t multiply fish and bread, but it opens opportunities to work for hundreds of thousands of youths,” Salvini said in Monday evening news conference flanked by Prime Minister Giuseppe Conte, Di Maio, and Finance Minister Giovanni Tria. “After 137 days of governing, I think we can be satisfied with what we’ve done.”

In reference to the festering acrimony between EU bureaucrats and populist Italian leaders, who have even threatened to sue Juncker for jawboning Italian bond yields, the European Commissioner said speculation that he’s somehow “against Italians” is “rubbish”.

“They attack me, insult me but do not ask questions. Let’s stop saying that I am against Italy. It’s rubbish, it’s a lie,” said Mr Juncker.

Italian Prime Minister Giuseppe Conte is set to address EU leaders at a summit in Brussels on Thursday, despite fears that he might hijack the summit’s agenda, which leaders have hoped would focus on finalizing a draft Brexit deal. But while some EU leaders have pushed to give Italy a pass, fearful of provoking an EU “showdown,” Juncker has continued to insist that the EU must abide by its rules. Conte and Tria are expected to address Italian lawmakers Tuesday afternoon Rome time.

Officials are fearful the mini eurozone summit could become a flashpoint between Rome and the EU if hawkish governments such as the Netherlands demand Mr Conte stick to Rome’s budget commitments. A senior EU official warned against an EU showdown.

“There are clear procedures on assessment of national budgets,” said the official who urged “mutual respect” on all national spending plans. “It is not the role of other member state leaders to make any assessment of the budgets. The ball is in the court of the commission.”

Mr Juncker insisted the assessment would be made without any “prejudice” against Italy’s Eurosceptic coalition government, made up of the rightwing League and anti-establishment Five Star parties.

“Europe operates according to pre-established rules. Incoming governments must respect the word of those who preceded them,” he said.

As speculation about an ‘Italeave’ scenario has continued to fester as the budget showdown has dragged on, one reporter asked Juncker if he felt that European Union could survive an Italian exit. Citing polling data showing that most Italians favor remaining in the EU, Juncker insisted that the EU wouldn’t survive the departure of its third-largest economy – and that Italy wouldn’t survive an exit from the EU.

“Europe needs Italy and Italy needs Europe,” Juncker said, answering “No” when asked if Europe could survive an Italian exit.

But will this in any way shift Brussels’ evaluation of the Italian budget? We think not. Still, we imagine markets will be ‘disappointed’ when Brussels sends the draft back covered in red ink.

 

END

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

SAUDI ARABIA
Pompeo takes a 12 hr flight to see King Salman of Saudi Arabia. The meeting lasts 15 minutes
It sure looks like some innocent underlings are going to take the fall for the murder
(courtesy zerohedge)

Pompeo Took 12-Hour Flight To Saudi Arabia For ’15

Minute Meeting’ With King Salman

Update: After this morning’s mini-meeting, Pompeo said that King Salman had agreed to a “timely” investigation. Meanwhile, Turkish officials have told Western media inside the Saudi consulate to suggest that Khashoggi was killed there.

*POMPEO, SAUDI CROWN PRINCE AGREED TO TIMELY INVESTIGATION

*POLICE FIND EVIDENCE IN SAUDI CONSULATE KHASHOGGI WAS KILLED:AP

*AP CITES A TURKISH OFFICIAL ON CONSULATE

*POMPEO REITERATED TRUMP CONCERNS OVER KHASHOGGI, U.S. SAYS

* * *

Even before the publication of last night’s Saudi trial balloon hinting that the kingdom would soon acknowledge that the extrajudicial killing of Jamal Khashoggi – the insider-turned dissident journalist who walked into the Saudi consulate in Istanbul last week and never walked back out – was the result of a “botched” kidnapping attempt carried out by “rogue killers” (despite reports that the US intelligence community knew that Khashoggi was being “targeted”), two realities had become increasingly clear. One: That the Saudis would avoid responsibility for the killing by pinning it on some unfortunate underling, and two: that there would be few, if any, lasting diplomatic repercussions.

And as more media organizations confirmed reports about Saudi’s plans to spin Khashoggi’s murder as a botched interrogation (we can only imagine what was said in that room to justify the use of such extreme violence), CNNcalculated the Secretary of State Mike Pompeo met with Saudi King Salman in Riyadh for approximately 15 minutes early Tuesday, following his 12-hour-plus flight to the kingdom.

US Secretary of State Mike Pompeo’s meeting with King Salman of Saudi Arabia lasted no more than 15 minutes, CNN estimates based on the time the top US diplomat’s motorcade arrived at the royal court and departed.

The motorcade arrived at the royal court at 11:42 a.m. (4:42 a.m. ET) and left 26 minutes later.There is a fair distance to walk from where the motorcade dropped Pompeo off to where he met the king.

Fortunately, there was time for a quick photo:

Pompeo

To be sure, Pompeo is also expected to meet with MbS during his visit to the kingdom, per the BBC.

And while Trump said on Monday that Pompeo would travel to Turkey “if necessary”, the Saudi’s decision to “come clean” about Khashoggi’s death pretty much rendered Pompeo’s fact-finding mission unnecessary. More important are developments in Turkey, where the joint Saudi-Turkish “investigation” is turning its attention toward the home of the Saudi consul, where a black diplomatic van that departed the Saudi consulate just under two hours after Khashoggi entered was captured on camera disappearing into a garage. Some speculate that this is where the killers finished disposing of Khashoggi’s body. This comes after a “nine-hour” search of the Saudi consulate building that, according to leaks published in Al-Jazeera, turned up “evidence of tampering” by the Saudis. On Tuesday, Turkey’s foreign minister clarified that Saudi had yet to admit its role in Khashoggi’s disappearance and probable death.

Turkish investigators will carry out a search of the Saudi Consul General’s residence on Tuesday as the probe into the disappearance of journalist Jamal Khashoggi continues, according to a Turkish diplomatic source.

CCTV footage released to the media from the day the Washington Post writer vanished show movement of vehicles from the consulate building to the Consul General’s residence nearby.

As speculation mounts that the incident could unseat the increasingly authoritarian Crown Prince Mohammad bin Salman (who has already marginalized or incapacitated nearly every threat to his rule), it’s looking more likely that neither the US nor the rest of the Western world will do much to punish the world’s most important oil exporter, which can “weaponize” the oil market seemingly on a whim.

Any punishment for this flagrant violation of human rights will need to come, therefore, from the private sector, which, according to Bloomberg, could sabotage MbS’s grand Vision 2030 plan, which aims to remake the Saudi economy via a flood of foreign direct investment:

The economic strategy of Saudi Crown Prince Mohammad bin Salman, known as MBS, is to make investment the main engine of economic growth instead of government spending, but the disappearance of Saudi journalist Jamal Khashoggi could frustrate these ambitions. Foreign direct investment, a key part of the plan to reinvent Saudi Arabia’s economy, declined sharply in 2017 and is unlikely to return to previous levels, leaving the government’s target for 2020 beyond reach, according to analysis by Bloomberg Economics. Increased policy uncertainty and, after the Khashoggi incident, the risk of reputational damage to foreign companies working in Saudi Arabia won’t help.

Already, BBG believes FDI in KSA will miss the regime’s target for 2020.

Two

As if to underline this point, CNN reported that three more prominent bank CEOs said Tuesday that they would pull out of MbS’s “Davos in the Desert”. At this point, so many have spurned the conference that CNN felt it would be easier to list the attendees who haven’t already cancelled.

CNN Business

@CNNBusiness

Here’s who is still planning to attend Saudi Arabia’s big conference https://cnn.it/2yFj1iv

END

Supposedly Turkey finds evidence of the killing of Khashoggi inside the Saudi consulate

(courtesy zerohedge)

Turkey Finds ‘Evidence’ Missing Journalist Was Killed

Inside Saudi Consulate: AP

Turkish investigators have only just finished searching the home of the Saudi Arabian consul in Istanbul – a home that was, according to surveillance footage, the destination of a car with diplomatic plates suspected of spiriting the remains of journalist Jamal Khashoggi out of the country’s consulate – and already the Associated Press is reporting that investigators found “evidence” that Khashoggi, a Saudi insider-turned-dissident who occasionally wrote columns for the Washington Post, was murdered inside the Saudi consulate in Istanbul.

Here’s more from the Associated Press:

A high-level Turkish official says police have found “certain evidence” during their search of the Saudi Consulate showing that Saudi writer Jamal Khashoggi was killed there.

The official did not provide details on the evidence that was recovered during the hours long search at the diplomatic mission that ended early Tuesday.

The official spoke to The Associated Press on condition of anonymity because he was not authorized to speak publicly about the investigation.

Turkish officials say Saudi agents killed and dismembered the writer at the Saudi Consulate in Istanbul on Oct. 2. Saudi Arabia previously called the allegation “baseless,” but U.S. media reports suggest the Saudis may soon acknowledge Khashoggi was killed there, perhaps as part of a botched interrogation.

This should probably go without saying, but Turkish Foreign Mevlut Cavusoglu chided the Saudi Arabians on Tuesday, saying that interrogations shouldn’t be held at consulates.

He added: “Consulates aren’t places to hold interrogations. Interrogations should take place in courts, (by) judiciary authorities.”

Meanwhile, Turkey said the Saudis have not admitted to their role in Khashoggi’s death, contrary to media reports.

Foreign Minister Mevlut Cavusoglu also said on Tuesday that Saudi Arabia hadn’t offered any confession to Turkey over its alleged involvement in the disappearance and feared slaying of Saudi writer Jamal Khashoggi.

Asked about a New York Times report that Saudi Arabia might say Khashoggi was killed in an interrogation gone wrong, the minister said: “We have not received such information.”

Meanwhile, Secretary of State Mike Pompeo was all smiles at a meeting with Saudi Crown Prince Mohammad bin Salman:

Pompeo

END
It looks like this one is spiraling out of control”  Republican senators are threatening sanctions against Saudi Arabia
(courtesy zerohedge)

Republican Senators Threaten Sanctions Against Saudi

Arabia

By now, observers in Asia and North American have probably sensed that President Trump’s threats of “severe punishment” for Saudi Arabia, should proof emerge that the kingdom masterminded the murder of Washington Post columnist and dissident expatriate Jamal Khashoggi, were disingenuous. The US intelligence community already has evidence that Saudi was targeting Khashoggi for writing some less-than-flattering things about Crown Prince Mohammad bin Salman. Of course, Trump knows that sanctioning the Saudis or blocking arms sales to the regime could provoke a disproportionate reaction: Worst-case, the kingdom could ‘weaponize’ oil and provoke a global recession. Best case, thousands of those manufacturing jobs that President Trump has fought so hard for could disappear.

McConnell

But following reports that the Kingdom is preparing to admit its role on Khashoggi’s death (the official story: that Khashoggi was killed during an interrogation by rogue killers), Republican lawmakers are stepping up their rhetoric against the kingdom, with several Republican leaders in the Senate saying on Tuesday that the body could move to sanction Saudi Arabia, a policy that would likely find widespread purchase with liberal lawmakers. As speculation that Republicans could levy sanctions against Saudi Arabia via the Magnitsky Act, the controversial law passed to make it easier for the US to punish Russian officials for perceived human rights abuses, Mitch McConnell left the door open to this possibility, saying “it may well be.”

“I can’t imagine there won’t be [a response] but I think we need to find out what happened,” he told Bloomberg. “It may well” be worth sanctioning through Magnitsky Act.

But compared with Lindsey Graham’s comments on Fox and Friends, McConnell’s take was relatively mild.

Lindsey Graham, speaking during an interview with Fox and Friends, said that while he was once Saudi Arabia’s biggest ally, he would never again support Saudi Arabia – and that he would vote to “sanction the hell out of Saudi Arabia” – if Mohammad bin Salman remains in charge. “That guy’s got to go,” he said.

Kyle Griffin

@kylegriffin1

Lindsey Graham: MBS is a “wrecking ball” who had Khashoggi murdered, he’s “toxic” and he’s “gotta go.”

“This guy is a wrecking ball, he had this guy murdered in a consulate in Turkey, and to expect me to ignore it, I feel used and abused.” (via Fox)

Marco Rubio has perhaps been the most consistently vocal in his demands that the US consider halting arms sales to the Kingdom, chiming in two weeks ago following initial reports of Khashoggi’s disappearance that the US should be prepared to punish KSA if reports about Khashoggi’s murder were found to be true. During a recent interview on CNN, Rubio asserted that, if Trump fails to punish Saudi Arabia (assuming the murder is verified) “there will be a very strong Congressional response.” Rubio added that he has already asked for a Magnitsky investigation, meaning that the individuals involved in the killing would be sanctioned.

But not all Republicans feel so strongly. As of Tuesday morning, Treasury Secretary Steven Mnuchin still intends to travel to Saudi’s “Davos in the Desert” next week, though via statement’s from his office, he is keeping his options open.

end

the Saudi Prince MbS, totally denies knowledge of the killing and promises a complete investigation

(courtesy zerohedge)

 

Trump: Saudi Prince “Totally Denied” Knowledge Of

Khashoggi Killing, Promised “Complete” Investigation

While Saudi Crown Prince Mohammad bin Salman was meeting with Secretary of State Mike Pompeo in Riyadh..

Pomp

…The two apparently conferenced in the big boss back in Washington to discuss the ongoing diplomatic crisis that has resulted from the murder of Saudi journalist Jamal Khashoggi at the Saudi’s consulate in Istanbul in what was the first conversation between the prince and Trump since the crisis broke out two weeks ago. Trump had previously spoken with KSA’s aging nominal leader, King Salman. Following the conversation, Trump tweeted Tuesday afternoon that he had spoken with MbS during the prince’s meeting with Pompeo, and that MbS had “totally denied” having any knowledge of the killing that is believed to have taken place inside the consulate. Furthermore, MbS told Trump that he had “already opened” and “would rapidly expand” an investigation into the incident, with Trump concluding by promising that “answers would be forthcoming shortly.”

Donald J. Trump

@realDonaldTrump

Just spoke with the Crown Prince of Saudi Arabia who totally denied any knowledge of what took place in their Turkish Consulate. He was with Secretary of State Mike Pompeo…

 

Donald J. Trump

@realDonaldTrump

Just spoke with the Crown Prince of Saudi Arabia who totally denied any knowledge of what took place in their Turkish Consulate. He was with Secretary of State Mike Pompeo…

Donald J. Trump

@realDonaldTrump

…during the call, and told me that he has already started, and will rapidly expand, a full and complete investigation into this matter. Answers will be forthcoming shortly.

The New York Times on Tuesday published a story explaining why the Trump Administration has been so cautious in its response to the killings. Per the story, the US had been depending on Saudi Arabia to increase oil production as part of a plot to sideline Iranian exports after the US reimposes sanctions on Iran on Nov. 4. While the two countries have a mutual interest in hobbling the Iranian oil industry, the Saudis also have leverage to screw over the US and mitigate the impact of its sanctions. Trump’s tweet also followed reports that the Saudis had undertaken the first retaliation against a Western company over executives abandoning its “Davos in the Desert” by pulling a deal with Virgin Hyperloop. Media reports have suggested that the Saudis intend to blame the killing of Khashoggi on “rogue operatives” who had been sent to the embassy to detain or interrogate Khashoggi.

6. GLOBAL ISSUES

This is good for gold:  Both China and Japan dumped treasuries. Saudi Arabia and Brazil were purchasers of the treasuries.

(courtesy zerohedge)

China & Japan Dump Treasuries As Dollar’s Reserve Status Slumps To 5 Year Lows

Treasury International Capital flows showed Brazil the biggest buyer of Treasurys in August (followed by Ireland and France), but it was China and ‘ally’ Japan that dumped the most Treasurys in the month…

Brazil is Steve Mnuchin’s best friend…

As China reduced their holdings of US Treasurys for the 3rd straight month…

 

Japan flipped to a seller again in August back to the lowest holdings since October 2011…

 

And while the Saudis were buying in August…

 

the broad trend among other majors has been selling…

 

All of which has driven the USDollar’s share of global central bank reserve to its lowest since 2013

And, according to economist Zach Pandl at Goldman Sachs, Washington’s aggressive policy against Moscow could be the biggest driver behind the recent fall of the dollar’s share of global central-bank reserves,who noted that Russia’s Central Bank sold some $85 billion of its $150 billion holding of the US assets from April through June after the US Treasury Department announced new sanctions on Russian businessmen, companies and government officials.

At the beginning of April, as RT reports, Washington expanded its anti-Russian sanction list, including seven Russian tycoons, 12 companies and 17 senior government officials over alleged meddling in the 2016 US presidential election, and according to Pandl, the co-head of global FX and emerging-market strategy, the US policy of unilateral tariff hikes and sanctions is putting at risk the greenback that is still dominating the global currency reserves.

“The Central Bank of Russia likely sold a large portion of its dollar-denominated assets, and perhaps all of its US Treasuries held by US custodians, and transferred them to euro-denominated and yuan-denominated bonds in the second quarter,” the economist said.

“This would account for more than half of the decline in the share of dollar reserves during the quarter.”

According to the recent data revealed by the International Monetary Fund, share of the US national currency in the global central-bank reserves declined to 62.3 percent in the second quarter with holdings in the euro, yen and yuan gained as a share of allocated reserves.

“Sanction risk appears to explain a significant portion of the observed decline,” the analyst said.

“The dollar’s share of reserve assets could decline further if other large reserve holders were to make similar changes as the Central Bank of Russia over time.”

Remember, nothing last forever…

7  OIL ISSUES

 

 

end

8. EMERGING MARKETS

ZIMBABWE

end

 

 

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

Euro/USA 1.1579 DOWN .0004 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems + USA election:///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES IN THE GREEN EXCEPT LONDON 

 

 

 

USA/JAPAN YEN 112.01  UP 0.125  (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 1.3217 UP   0.0639  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.2965  DOWN .0030 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS TUESDAY morning in Europe, the Euro FELL by 4 basis point, trading now ABOVE the important 1.08 level FALLING to 1.1579; / Last night Shanghai composite CLOSED DOWN 21.77 POINTS OR 0.85%

 

//Hang Sang CLOSED UP 17.20 POINTS OR 0.07%

 

/AUSTRALIA CLOSED UP  0.50% / EUROPEAN BOURSES ALL GREEN EXCEPT LONDON FTSE

 

The NIKKEI: this TUESDAY morning CLOSED UP 277.94 POINTS OR 1.25%

 

 

 

Trading from Europe and Asia

1/EUROPE OPENED ALL GREEN EXCEPT LONDON FTSE

 

 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 17.20 POINTS OR 0.07%

 

/SHANGHAI CLOSED DOWN 21.77 POINTS OR 0.85%

 

 

 

Australia BOURSE CLOSED UP .50%

Nikkei (Japan) CLOSED UP 277.94 POINTS OR 1.25%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1230.00

silver:$14.76

Early TUESDAY morning USA 10 year bond yield: 3.17% !!! UP 2 IN POINTS from MONDAY’S night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/

The 30 yr bond yield 3.35 UP 2  IN BASIS POINTS from FRIDAY night. (POLICY FED ERROR)/

USA dollar index early TUESDAY morning: 95.03 DOWN 3  CENT(S) from MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

And now your closing TUESDAY NUMBERS \1: 00 PM

 

Portuguese 10 year bond yield: 1.94% DOWN 6    in basis point(s) yield from MONDAY/

JAPANESE BOND YIELD: +.15%  UP 1  BASIS POINTS from MONDAY/JAPAN losing control of its yield curve/EXTREMELY VOLATILE YESTERDAY…DANGEROUS!!

SPANISH 10 YR BOND YIELD: 1.65% DOWN 3 IN basis point yield from MONDAY/

ITALIAN 10 YR BOND YIELD: 3.45 DOWN 10   POINTS in basis point yield from MONDAY/

 

 

the Italian 10 yr bond yield is trading 180 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: FALLS UP TO +.49%   IN BASIS POINTS ON THE DAY//

 

END

IMPORTANT CURRENCY CLOSES FOR TUESDAY

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

Euro/USA 1.1588 UP .0006 or 6 basis points

 

 

USA/Japan: 112.16 DOWN .325 OR 33 basis points/

Great Britain/USA 1.3210 UP .0056( POUND UP 56 BASIS POINTS)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

This afternoon, the Euro was ROSE BY 6 BASIS POINTS  to trade at 1.1588

The Yen ROSE to 112.16 for a LOSS of 33 Basis points as NIRP is STILL a big failure for the Japanese central bank/HELICOPTER MONEY IS NOW DELAYED/BANK OF JAPAN NOW WORRIED AS AS THEY ARE RUNNING OUT OF BONDS TO BUY AS BOND YIELDS RISE

The POUND GAINED 56 basis points, trading at 1.3210/

The Canadian dollar gained 61 basis points to 1.2932

 

 

The USA/Yuan,CNY closed UP AT 6.9120-  ON SHORE  (YUAN down)

THE USA/YUAN OFFSHORE:  6.9102 (  YUAN down)

TURKISH LIRA:  5.7294

the 10 yr Japanese bond yield closed at +.15%

 

 

 

Your closing 10 yr USA bond yield UP 0 IN basis points from MONDAY at 3.16 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.34 UP 0 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, 94.97 DOWN 8 CENT(S) ON THE DAY/1.00 PM/

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

London: CLOSED UP 28.49 POINTS OR 0.41%

German Dax : CLOSED UP 160.68 POINTS  OR 1.38%
Paris Cac CLOSED UP 76.68 POINTS OR 1.500%
Spain IBEX CLOSED UP 160.000 POINTS OR 1.71%

Italian MIB: CLOSED UP:  415.90 POINTS OR 2.16%/

 

 

WTI Oil price; 71.72 1:00 pm;

Brent Oil: 80.58 1:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    65.30  THE CROSS LOWER BY .37 ROUBLES/DOLLAR (ROUBLE HIGHER by 37 BASIS PTS)

USA DOLLAR VS TURKISH LIRA:  5.7294 PER ONE USA DOLLAR.

TODAY THE GERMAN YIELD FALLS +.49 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:71.91

 

BRENT:81/28

USA 10 YR BOND YIELD: 3.16%

USA 30 YR BOND YIELD: 3.33%/

EURO/USA DOLLAR CROSS: 1.1577 ( DOWN 6 BASIS POINTS)

USA/JAPANESE YEN:112.26 UP .420 (YEN DOWN 42 BASIS POINTS/ .(LACK OF FOR.EXCHANGE SWAPS)

USA DOLLAR INDEX: 95.07 UP 1 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.3187 UP 33 POINTS FROM YESTERDAY

the Turkish lira close: 5.6714

the Russian rouble:  65.36 UP 0.30 Roubles against the uSA dollar.( UP 30 BASIS POINTS)

 

Canadian dollar: 1.2944 UP 51 BASIS pts

USA/CHINESE YUAN (CNY) : 6.9120  (ONSHORE)

USA/CHINESE YUAN(CNH):  6.9133 (OFFSHORE)

German 10 yr bond yield at 5 pm: ,0.49%

 

The Dow closed  UP  547.87 POINTS OR 2.17%

NASDAQ closed UP 214.74  points or 2.89% 4.00 PM EST


VOLATILITY INDEX:  17.89  CLOSED DOWN  3.41

LIBOR 3 MONTH DURATION: 2.449%  .LIBOR  RATES ARE RISING/big jump today

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

TRADING IN GRAPH FORM FOR THE DAY

 

Stocks Soar On Biggest Short-Squeeze Since Trump’s

Election

500 Dow points – what else is there (forget the 2000 point drop last week!!)

 

Before we get started on how bullish the US equity rebound m

Before we get started on how bullish the US equity rebound must be… consider this – today is the biggest short-squeeze day since Nov 2016’s post-Trump election rebound…

 

With “Most Shorted” Stocks soaring off last week’s lows…

 

Sparking a panic-bid in Small Caps and Trannies…

 

Before you get too excited – look how dismal volume was today…

 

All the majors bounced off key technical levels…Small Caps remain below their 200DMA…

 

The Dow erased over 50% of last week’s plunge… (but is still well down from the early October highs)

 

In October, it’s still a sea of red led by Small Caps and Dow is least loser…

 

The big banks soared today. Since earnings began, Morgan Stanley is up 5.6% but JPMorgan is unchanged…

 

But BlackRock tumbled as Institutional investors dumped out of equities…

 

FANG Stocks retraced Fib 38.2% of October’s ugliness…

 

While VIX has slumped back from its spike highs, it remains inverted for the 7th day in a row…

 

China stocks were down again overnight…

 

But Europe continued its incessant bid…led by Italy.

 

While stocks soared, bonds were also marginally bid… were RP funds reloading today?

 

With yields pushing back to unchanged on the week…

 

With 10Y remaining in a tight range…

 

Aggregating Stock and Bond returns today was the best day since Feb 6th… (as both stocks and bonds rallied)

 

The Dollar Index broke briefly below 95 but ended unchanged…

 

PBOC fixed Yuan higher overnight and offshore yuan rallied modestly…

 

EM FX soared led by Peso, Lira, and Rand today…

 

Cryptocurrencies were modestly higher on the day

 

PMs faded and WTI gained on the day…

 

Gold ended unchanged and silver modestly lower…

 

 

 

market trading

market data/

Another indicator to suggest that the USA economy is now faltering:  industrial production growth beats the street but slows to its weakest level since May

(courtesy zerohedge)

Industrial Production Growth Beats But Slows To

Weakest Since May

Industrial Production has risen and beaten expectations for four straight months (up 0.3% MoM vs +0.2% exp),

but we do note that this is the slowest gain since the plunge in May.

Vehicle Production growth slowed from +4.3% MoM to +1.7% MoM in September.

Capacity Utilization missed expectations very modestly (unchanged at 78.1%).

While US ‘hard’ data has serially disappointed for the much of the year, industrial production continues to push higher, rebounding in recent months ahead of tariff turmoil…

 

And finally, for good measure and consistency, the gap between America’s industrial production and America’s stock market measure of industrials has never been bigger…

USA economic/general stories

 

SWAMP STORIES

Tom Luongo on the upcoming midterm elections. Julian Assange now has internet connections. Luongo discusses what this means:

(courtesy Tom Luongo)

As U.S. Polls Tighten, The Signs All Point To Hillary

Authored by Tom Luongo,

In case you haven’t been paying attention, the Republicans are going to remain in control of both the House and the Senate in a couple of weeks.  Since their flawless victory over the Democrats in the fight to confirm Judge Brett Kavanaugh to the Supreme Court, the Republican base is more energized now than at any point since November 2016.

They say pictures are worth a thousand words… so, here’s one.

The Redcoats are Coming, The Redcoats are Coming!

Source: RealClearPolitics.com

And if you don’t think the person that is most worried about this picture is Hillary Clinton, then you haven’t been paying attention.

But, to get to Hillary, I’ll have to connect a few dots.

It is pretty obvious that Trump has begun winning over important parts of the GOP leadership, most notably Senate Majority Leader Mitch McConnell (R-Kentucky), who shared a stage with Trump in Kentucky recently.

While on the other hand, those most in opposition to Trump like Speaker of the House Paul Ryan (D-Wisconsin) and Jeff Flake (D-McCainville) are retiring because they know they can’t win.

Trump and McConnell’s win, as I said previously, “gave spine to the spineless.” Like Trump or hate him, for the most part, the guy is a change agent.

So, McConnell rammed another 15 judges down the Democrats’ throats to allow them time to do a little chair rearrangement on the deck of their party’s Titanic before November 6th.

The early signs have come from the foreign policy front, namely Trump’s cabinet.

The great Justin Raimondo at Antiwar.com feels, “the trend is moving in our direction – toward a new foreign policy for America, one that functions to protect the people of this country rather than police the world. Go not abroad in search of monsters to destroy.”

The reason I can give Raimondo’s optimism an audience stems from Gareth Porter’s recent article about Trump’s cabinet sabotaging him on foreign policy.

The excerpts from Bob Woodward’s book “Fear: Trump in the White House” that Porter pulls together along with other sources paints a very probably scenario of what is going on.   Trump is fighting daily with his cabinet.

I’m sure Woodward’s goal was to show Trump as weak and not in control, because that’s the narrative du jour in the hopes of creating a 25th Amendment challenge to him post mid-terms.

But, since the Democrats are going to lose the mid-terms, this book now can serve as research into the shift in policy coming from Trump starting in mid-November.

And Trump is doing just a little bit more than signaling what’s coming.

I’ve settled on the belief that he fired Nikki Haley.  She was, next to Certified Crazy Person John Bolton, the biggest neoconservative and AIPAC boot-licker in the administration.  I expect Bolton will be gone soon if sanctions on Iran don’t work.

I bet she got wind of his intentions and then quit before the elections out of spite because … AIPAC.

As I said the day it happened, the only way our presence at the U.N. could be worse is if Dick Cheney is made U.N. Ambassador.  So, buh-bye Nimrata.

That was interesting.  But, now Trump’s undercutting Secretary of Defense James Mattis publicly.  He hasn’t done this before.

When the MSM was trying to drive a wedge between Trump and Mattis I didn’t believe it.

When Trump is doing it, I’m listening.  That’s a real change.  Calling Mattis “a sort of a Democrat” is pure signaling to his base that Mattis has been a problem in the Middle East.

Has Trump has finally made the point clear to his generals that staying in Syria and Afghanistan forever is not in the U.S.’s best interests?  Firing Mattis or allowing him to resign gracefully after the mid-terms would be a big move in that direction, if Woodword’s reporting is to be believed.

Woodward paints Mattis as the biggest obstacle to that end, arguing for the standard neoconservative line of defending America by invading the world.

Trump wants us out of Syria and Afghanistan.  His cabinet doesn’t.  So, we’re seeing him beginning to change the cabinet.  Again, this happens as fallout from the Kavanaugh win since that fight changed the game at the grassroots level making it easier for him to fire the paper-hangers and promote the fire-breathers.

Then we have Israel and Syria opening up the Quinetra crossing to and from the Golan Heights for the first time in seven years, even though the war or words between the two countries continues to be belligerent.

Russian Foreign Minister Sergei Lavrov met with Henry Kissinger on the sidelines of the U.N. General Assembly.  Try to find anything out about this in a standard search engine result.   Because “Lavrov Kissinger Meeting” needed the word “TASS” added to it to get this article stub from Russian State News Service TASS.

And that is literally all you will get about this meeting outside of my commenting on it.

Because the Panopticon is real folks.

And that brings me, finally, to Trump’s revoking Hillary Clinton’s security clearance along with five others including her close aide Cheryl Mills.

Hillary and her staff have been using their clearance, like former CIA Director John Brennan to attack Trump in the press.

But, it is, lastly, the news that Ecuador reinstated Wikileaks’ publisher Julian Assange’s Internet and communications is the thing that set off my Spidey-Sense and was the catalyst for this post.

Assange has been held under an effective gag order, like Paul Manafort, for months now  to keep them both from telling their story to the world.  For more than a year Trump has fought an uphill battle against a deluge of distractions, most of which are untrue and some simply intelligence agency provocations designed to push him into untenable positions.

But, the noose is tightening around the conspiracy to oust Trump from power as it is outed bit by bit. With each small revelation, the picture is in focus.  All that was missing was a fundamental change in the political atmosphere.

Because, make no mistake, Assange knows where all the metaphoric and literal bodies are buried.

The pressure on Ecuador’s new President to keep Assange silent must have lifted otherwise he’d still be in effective solitary confinement.   And why would that pressure lift all of a sudden?

Glenn Simpson of Fusion GPS ‘took the Fifth’ in Congressional testimony.  Assistant Attorney General Rod Rosenstein ignored the summons from Congress.

Everyone knows Julian Assange can put the finger on Hillary for what happened in 2016 (and so many other things).

So, putting the last piece to this puzzle together, it should be getting clearer here that some very important people are about to be indicted and/or arrested.

Containment around Hillary’s crimes has been breached and all that’s left now is for the people close to her to start turning on each other.  The mid-terms were their last, best hope for a stay of execution.

But, Kanye West personally ended that hope just days after Kavanaugh was confirmed.

As the newly-empowered GOP bulldogs like Devin Nunes and John Ratcliffe take things to the next level in their investigations expect these trickles to become a torrent in the wake of the Red Tide coming on November 6th.

*  *  *

Join my Patreon if you like connecting dots.

END

Project Veritas exposes Missouri Democrat McCaskill for hiding a true liberal agenda form moderate voters

(courtesy zerohedge)

Veritas Undercover Exposes MO Sen. McCaskill Hiding

Liberal Agenda From Moderate Voters: “People Just

Can’t Know That”

In the third undercover video filmed by Project Veritas  during the ongoing 2018 election season, Missouri Senator McCaskill’s considerably more liberal views – “essentially the same as [Obama’s]” – are exposed as she and her campaign staff conceals them in order to court moderate voters… and she needs them as her and her opponent are essentially tied:

Via ProjectVeritasAction.com,

Said James O’Keefe, founder and president of Project Veritas Action:

“This undercover report shows just how broken our political system has become. Senator McCaskill hides her true views from voters because she knows they won’t like them.” 

Senator McCaskill Talks Gun Bans on Tape

Senator McCaskill revealed her intention to vote on various gun control measures in undercover footage:

MCCASKILL: “Well if we elect enough Democrats we’ll get some gun safety stuff done. They won’t let us vote on it, we’ve got 60 votes for a number of measures that would help with gun safety, but McConnell won’t let ’em come to the floor.”

JOURNALIST: “Like bump stocks, ARs and high capacity mags…?”

MCCASKILL: “Universal background checks, all of that… But if we have the kind of year I think we might have I think we could actually be in a position to get votes on this stuff on the floor and we’d get 60 [votes]…”

JOURNALIST: “So you would be on board with the bump stocks and… high capacity mags.”

MCCASKILL: “Of course! Of course!”

Despite her strong views on gun control, Senator McCaskill does not tend to promote them on the campaign trail or on her website. Rob Mills, who works on Senator McCaskill’s campaign, says that is “…because she has a bunch of Republican voters.”

Another individual who works on Senator McCaskill campaign, Carson Pope, adds that “…a semi-automatic rifle ban is more so what she would support.”

“People just can’t know that.”

According to Mills, Senator McCaskill conceals her support of Moms Demand Action, a gun control group, and other similar organizations because they would “…hurt her ability to get elected.”

MILLS: “But she doesn’t openly go out and support groups like ‘Mom’s Demand Action’ or just like other groups that are related to that. Because that could hurt, her ability to get elected. Because people like see that and they’re like well I don’t want to support her even though they stand for the same policies…”

MILLS: “She’s worked out stuff with Mom’s Demand Action to make sure that she can support their goals without supporting the organization openly. And you know, Mom’s Demand Action does the exact same thing. Like a lot of our volunteers are actually from there. She’s really good about strategy and making sure she has a goal and can get there.”

Nicolas Starost, another individual who works on Senator McCaskill’s campaign, explains how President Obama won’t campaign for Senator McCaskill in Missouri despite their similar views on politics. Starost says this is because Senator McCaskill needs to distance herself from the Democratic party to appeal to more voters:

STAROST: “Because of how like, cause he’s a very liberal candidate. And like… Claire distancing herself from the party is gonna help her win more votes than it will saying like: “Oh here’s Obama, the former President of the United States, to now speak on my behalf.” Which is unfortunate because I love Obama to pieces, and I’d love to see him come here.”

JOURNALIST: “And they essentially have the same views on everything?”

STAROST: “Yeah. People just can’t know that.”

Impeachment

Another individual who works on Senator McCaskill’s campaign, Glen Winfrey, explains plans for the impeachment of President Trump:

JOURNALIST: “So, here’s the real question, Claire holds off on impeachment to get the moderate. What do we tell the moderates when we drop the impeachment hammer afterward?”

WINFREY: “Get over it. It was a national security question. That information was confidential, and she did her duty by not revealing the information until afterward.”

END

Carter Page sues and me may get considerable unredacted stuff.  If justice is failed, will the 5 to 4 Supreme Court come into action

(courtesy zerohedge)

“Getting Some Disclosure”: Carter Page Sues DNC And

Clinton Law Firm Over Sham Dossier Used To Spy On

Him

Former Trump campaign adviser Carter Page told Fox News‘s Sean Hannity on Monday that he is suing the Democratic National Committee (DNC) and Perkins Coie – the law firm used by the DNC and the Clinton campaign to funnel money to Fusion GPS.

Fusion, in turn, launched an expansive opposition research effort against Trump – hiring Nellie Ohr, the wife of a (formerly) high-ranking Department of Justice official, along with ex-MI6 spy Christopher Steele, who assembled the “Steele dossier” – which utilized Kremlin sources.

The dossier was then used by the FBI to obtain a FISA surveillance warrant to spy on Page, while the agency bolstered the warrant application with MSM news articles written by reporters who were fed information by Steele, in what Sean Hannity described as a “fraud” on “four FISA judges.” Interestingly, an un-recused Deputy Attorney General Rod Rosenstein – who is overseeing the Russia investigation – signed off on Page’s FISA application and subsequent renewals.

Chuck Ross@ChuckRossDC

FBI represented to a federal judge that investigators knew for certain that Carter Page met w/ Igor Sechin and Diveykin. Except, the FISA app acknowledges this intel came from Steele dossier. And FBI has acknowledged dossier was not verifieid. http://dailycaller.com/2018/07/21/doj-release-carter-page-fisa/ 

Of note, both Rosenstein and Fusion GPS co-founder Glenn Simpson have suddenly refused to speak to Congressional investigators, with Rosenstein bailing on scheduled testimony last week and Simpson’s lawyer announcing his client plans to invoke his fifth amendment right not to incriminate himself.

James Baker

James Baker, former FBI General CounselRosenstein’s decision not to testify may be due in part to statements made by former FBI top lawyer James Baker, who told Congressional investigators in early October that Rosenstein wasn’t joking about secretly recording President Trump right around the time former FBI Director James Comey was fired, then trying to impeach Trump by invoking the 25th amendment with the recordings.

Deputy Attorney General Rod Rosenstein“As far as Baker was concerned, this was a real plan being discussed,” reports The Hill‘s John Solomon, citing a confidential source.

Baker meets with Perkins Coie

In September 2016, Baker – then the FBI’s top lawyer, met with Perkins Coie at a meeting during which he received “documents and a thumb drive” related to the Russia case, according to Solomon.

Baker was interviewed by lawmakers behind closed doors on Wednesday. Sources declined to divulge much about his testimony, other than to say it confirmed other evidence about the contact between the Perkins Coie law firm and the FBI.

The sources said Baker identified lawyer Michael Sussman, a former DOJ lawyer, as the Perkins Coie attorney who reached out to him and said the firm gave him documents and a thumb drive related to Russian interference in the election, hacking and possible Trump connections. –The Hill

Of the lawsuit, Page said: “I’m just trying to get some justice in terms of getting some disclosure.

We imagine Page may ask a federal judge to force the DOJ to unredact key documents in the Russia investigation – which were ordered released on September 18 by President Trump – only to walk back the order days later. Explaining his change of heart, Trump said he received phone calls from two “very good allies” expressing concern over the release of the documents.

Who called?

Some have pointed out that Australia and the UK have the most to be worried about – as it was Australian diplomat Alexander Downer who played a key role conveying a “drunken admission” from Trump campaign aide George Papadopoulos that Russia had Hillary’s emails. Papadopoulos was reportedly fed the rumor by Maltese professor (and self-described Clinton Foundation member) Joseph Mifsud, who is currently in hiding and might be dead, or not.

The UK, meanwhile, was where much of the spycraft against the Trump campaign was conducted. Christopher Steele aside, at the beginning of Operation Crossfire Hurricane – the code name for the FBI’s counterintelligence operation on Trump, fired FBI agent Peter Strzok flew to London to meet with Downer. The meeting was described as “highly unusual,” and it was the foundation for Mueller’s ongoing investigation according to the New York Times.

Moreover FBI spy Stephen Halper – a US citizen and Cambridge professor, reportedly conducted espionage on Trump advisers Page and Papadopoulos on British soil months before the 2016 US election. Halper’s consulting firm was granted over $1 million in contracts from the Obama Pentagon, with nearly half of it coming directly before the 2016 election. Once the election was over, Halper continued to spy on Page.

If Page is denied justice, will his lawsuit go all the way to a now-conservative Supreme Court?

END

Have fun with this:  Trump will now go after both Stormy Daniels and her lawyer Avenatti
(courtesy zerohedge)

Trump Vows To Go After “Horseface” Stormy Daniels

And Her “3rd Rate Lawyer” Avenatti

President Trump on Tuesday vowed to go after “Horseface” Stormy Daniels and her attorney Michael Avenatti, after a federal judge dismissed her lawsuit against Trump on Monday, ordering her to pay his legal fees.

Trump tweeted on Tuesday morning: “Federal Judge throws out Stormy Danials lawsuit versus Trump. Trump is entitled to full legal fees.” @FoxNews Great, now I can go after Horseface and her 3rd rate lawyer in the Great State of Texas. She will confirm the letter she signed! She knows nothing about me, a total con!

Donald J. Trump

@realDonaldTrump

“Federal Judge throws out Stormy Danials lawsuit versus Trump. Trump is entitled to full legal fees.” @FoxNews Great, now I can go after Horseface and her 3rd rate lawyer in the Great State of Texas. She will confirm the letter she signed! She knows nothing about me, a total con!

Following the dismissal of Daniels’ case (real name Stephanie Clifford), Trump’s legal team issued the following statement:

United States District Judge S. James Otero issued an order and ruling today dismissing Stormy Daniels’ defamation lawsuit against President Trump. The ruling also states that the President is entitled to an award of his attorneys’ fees against Stormy Daniels. A copy of the ruling is attached. No amount of spin or commentary by Stormy Daniels or her lawyer, Mr. Avenatti, can truthfully characterize today’s ruling in any way other than total victory for President Trump and total defeat for Stormy Daniels. The amount of the award for President Trump’s attorneys’ fees will be determined at a later date.

Daniels’ attorney Michael Avenatti responded to Trump, tweeting: “You are a disgusting misogynist and an embarrassment to the United States. Bring everything you have, because we are going to demonstrate to the world what a complete shyster and liar you are. How many other women did you cheat on your wife with while you had a baby at home?”

Michael Avenatti

@MichaelAvenatti

You are a disgusting misogynist and an embarrassment to the United States. Bring everything you have, because we are going to demonstrate to the world what a complete shyster and liar you are. How many other women did you cheat on your wife with while you had a baby at home?

Donald J. Trump

@realDonaldTrump

“Federal Judge throws out Stormy Danials lawsuit versus Trump. Trump is entitled to full legal fees.” @FoxNews Great, now I can go after Horseface and her 3rd rate lawyer in the Great State of Texas. She will confirm the letter she signed! She knows nothing about me, a total con!

Michael Avenatti

@MichaelAvenatti

.@realDonaldTrump – tens of millions of Americans are tired of your fraud, lies, and corruption. They are equally tired of your attacks on women, especially the ones who you have had sex with while cheating on your wives. We (and the UN) are laughing AT YOU, not with you.

Daniels, meanwhile, tweeted: “Ladies and Gentlemen, may I present your president. In addition to his…umm…shortcomings, he has demonstrated his incompetence, hatred of women and lack of self control on Twitter AGAIN! And perhaps a penchant for bestialityGame on, Tiny.”

Stormy Daniels

@StormyDaniels

Ladies and Gentlemen, may I present your president. In addition to his…umm…shortcomings, he has demonstrated his incompetence, hatred of women and lack of self control on Twitter AGAIN! And perhaps a penchant for bestiality. Game on, Tiny.

Donald J. Trump

@realDonaldTrump

“Federal Judge throws out Stormy Danials lawsuit versus Trump. Trump is entitled to full legal fees.” @FoxNews Great, now I can go after Horseface and her 3rd rate lawyer in the Great State of Texas. She will confirm the letter she signed! She knows nothing about me, a total con!

Yesterday, Avenatti responded to the dismissal, tweeting (and then deleting): “We will appeal the dismissal of the defamation cause of action and are confident in a reversal,” while stating that Daniels’ other claims against Trump and Cohen “proceed unaffected.”

Re Judge’s limited ruling: Daniels’ other claims against Trump and Cohen proceed unaffected. Trump’s contrary claims are as deceptive as his claims about the inauguration attendance.

We will appeal the dismissal of the defamation cause of action and are confident in a reversal.

— Michael Avenatti (@MichaelAvenatti) October 15, 2018

Last week Trump’s legal team argued that it made no sense for them to keep fighting in court over a $130,000 hush payment received by Clifford, also known as Stormy Daniels, as she invalidated the non-disclosure agreement she signed with Trump’s longtime fixer and lawyer, Michael Cohen.

The lawsuit is moot because Trump has consented that the agreement, as she has claimed, was never formed because he didn’t sign it and he has agreed not to try to enforce it, Trump said in his court filing. The company created by Cohen to facilitate the non-disclosure agreement, which initially said Clifford faced more than $20 million in damages for talking, said in September that it wouldn’t sue to enforce the deal. –Yahoo

Will Twitter ban Trump for violating their new rules against “language that treats other as less than human?”

Twitter’s Dehumanization Policy

You may not dehumanize anyone based on membership in an identifiable group, as this speech can lead to offline harm.

Definitions:

Dehumanization: Language that treats others as less than human. Dehumanization can occur when others are denied of human qualities (animalistic dehumanization) or when others are denied of their human nature (mechanistic dehumanization). Examples can include comparing groups to animals and viruses (animalistic), or reducing groups to a tool for some other purpose (mechanistic). –Twitter

thebradfordfile™@thebradfordfile

Twitter has a strict policy regarding accounts that “reduces someone to less than human–it will be permanently suspended.” Trump tweets ‘Horseface’.

Let’s hope he just gets a warning.

The aristocrats!

 

SWAMP STORIES COURTESY OF THE KING REPORT

and special thanks to Chris Powell of GATA for sending this down to us:

From ABC’s latest poll: This ABC News/Washington Post poll was conducted by telephone Oct. 8-
11, 2018 among a random national sample of 1,144 adults, with 65 percent reached on cell phones and 35 percent on landlines… Partisan divisions are 33-26-35 percent, Democrats-Republicans-independents…  https://www.langerresearch.com/wp-content/uploads/1201a2TrumpandtheMidterms.pdf
 
Gallup as of September 12, 2018: In politics, as of today, do you consider yourself a Republican, a Democrat or an independent? Republican 26%, Democrat 27%, Independent 44%
 
Before the 2016 Election, Nov. 1-6, 2016: Republican 27%, Democrat 31%, Independent 36%

The usual MSM polls are again under-sampling Republican voters to craft that better fit their biases.  There’s no doubt that they know the sampling is erroneously due to the results of 2016.  But, you don’t have to be right in the MSM to keep your jobs.
 
The GOP controls the WH and Congress plus thirty-something state legislatures and governorships.  So how can polls sample have such a big deficit of GOP to Democrat voters?
 
@brookefoxnews: Bangor Police Dept, Fire Dept, local hazmat team is investigating a suspicious letter at the home of @SenatorCollins in Maine. FBI is aware. Bangor PD is leading the investigation. Criminal Investigation Division is on the scene. Investigation is ongoing.

 

 

 

END-

I DO NOT THINK I WILL BE ABLE TO BRING YOU A COMMENTARY ON WEDNESDAY
HOWEVER I WILL BRING YOU THE COMEX DATA AND MORNING CURRENCY DATA ETC
I WILL LET YOU KNOW IF I CAN DELIVER A THURSDAY COMMENTARY

Harvey

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