JAN 2/2019/PLUNGE PROTECTION TEAM AGAIN COMES TO THE RESCUE OF USA MARKETS: DOW UP 18 POINTS/NASDAQ UP 30 POINTS/GOLD CONTINUES TO SHINE UP $3.55 TO 1282.15/ GLD HAS A MASSIVE DEPOSIT OF 7.64 TONNES OF GOLD INTO ITS INVENTORY/SILVER UP ANOTHER 10 CENTS TO $15.52/ASIA STOCKS FALTER AFTER CHINA ANNOUNCES A CONTRACTION IN THEIR PMI/ALSO BANKERS SOUND THE ALARM BELL FOR THE CHINESE HOUSING SECTOR/XI THREATENS TAIWAN/ECB TAKES OVER CONTROL OF ITALY’S CARIGE BANK/IRAQI JETS FIRE ON SITES INSIDE SYRIA AFTER A REQUEST FROM ASSAD/REPO RATES IN THE USA CONTINUE TO REMAIN HIGH AS A SIGN OF POOR COLLATERAL/

 

 

 

GOLD: $1282.15 UP $3.55 (COMEX TO COMEX CLOSINGS)

Silver:   $15.52 UP 10 CENTS (COMEX TO COMEX CLOSING)

Closing access prices:

Gold :  1284.60

 

silver: $15.52

 

 

 

 

 

 

 

 

 

For comex gold and silver:

JANUARY

 

 

 

NUMBER OF NOTICES FILED TODAY FOR  JAN CONTRACT: 7 NOTICE(S) FOR 700 OZ (0.0217 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  64 NOTICES FOR 6400 OZ  (.1990 TONNES)

 

 

SILVER

 

FOR JANUARY

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

14 NOTICE(S) FILED TODAY FOR  70,000  OZ/

 

total number of notices filed so far this month: 116 for 580,000

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE  $3785:  down 11

 

Bitcoin: FINAL EVENING TRADE: $3850  up 54 

 

end

 

XXXX

JPMorgan or Goldman Sachs are taking a huge issuance (stopping) of gold at the comex.

today  2/7

DLV615-T CME CLEARING
BUSINESS DATE: 12/31/2018 DAILY DELIVERY NOTICES RUN DATE: 12/31/2018
PRODUCT GROUP: METALS RUN TIME: 20:16:38
EXCHANGE: COMEX
CONTRACT: JANUARY 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,278.300000000 USD
INTENT DATE: 12/31/2018 DELIVERY DATE: 01/03/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
624 C MERRILL 2
657 C MORGAN STANLEY 1
657 H MORGAN STANLEY 2
661 C JP MORGAN 2
737 C ADVANTAGE 3
800 C RCG 4
____________________________________________________________________________________________

TOTAL: 7 7
MONTH TO DATE: 64

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

In silver, the total OPEN INTEREST ROSE BY AN SMALL SIZED  1910 CONTRACTS FROM 174,249 UP TO 176,159 WITH MONDAY’S GOOD 6 CENT GAIN IN SILVER PRICING AT THE COMEXTODAY WE ARRIVED 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 AS WE NOW HAVE JUST LESS THAN 22 MILLION OZ STANDING IN DECEMBER. 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:

3227 EFP’S FOR MARCH,  0 FOR APRIL AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 3227 CONTRACTS. WITH THE TRANSFER OF XXX 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 3227 EFP CONTRACTS TRANSLATES INTO 16.13 MILLION OZ  ACCOMPANYING:

1.THE 6 CENT GAIN IN SILVER PRICE AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES WHICH STOOD FOR DELIVERY IN THE LAST SIX MONTHS:

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING FOR NOVEMBER AND

 21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

AND NOW: INITIALLY 4.935 MILLION OZ STAND IN JANUARY.

 

 

ACCUMULATION FOR EFP’S/SILVER/J.P.MORGAN’S HOUSE OF BRIBES, / STARTING FROM FIRST DAY NOTICE/FOR MONTH OF JANUARY: 3227 CONTRACTS (FOR 1 TRADING DAYS TOTAL 3227 CONTRACTS) OR 16.13 MILLION OZ: (AVERAGE PER DAY: 3227 CONTRACTS OR 16.13 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF DEC:  16.13 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 2.28% 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 2019 TO DATE SILVER EFP’S:           16.13    MILLION OZ.

 

 

 

RESULT: WE HAD A GOOD SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1910 WITH THE 6 CENT GAIN IN SILVER PRICING AT THE COMEX //MONDAY..THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 3227 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 STRONG SIZED: 5137 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:

i.e 2933 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 1910 OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 6 CENT GAIN IN PRICE OF SILVER  AND A CLOSING PRICE OF $15.42 WITH RESPECT TO MONDAY’S TRADING. YET WE HAD A GIGANTIC AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY 

 

 

In ounces AT THE COMEX, the OI is still represented by JUST UNDER 1 BILLION oz i.e. .881 BILLION OZ TO BE EXACT or 126% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT JANUARY MONTH/ THEY FILED AT THE COMEX: 14 NOTICE(S) FOR 70,000 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:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./ DEC. AT 21.925 MILLION OZ  AND NOW JANUARY AT  4.935 MILLION OZ.
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018) AND NOW AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

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

 

IN GOLD, THE OPEN INTEREST ROSE BY 3268 CONTRACTS UP TO 451,360 WITH THE LOSS IN THE COMEX GOLD PRICE/(A FALL IN PRICE OF $2.20//MONDAY’S TRADING)

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A GOOD  SIZED 5767 CONTRACTS:

 

FEBRUARY HAD AN ISSUANCE OF 5767 CONTACTS  AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 451,360. ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE AN STRONG SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 5767 CONTRACTS: 3268 OI CONTRACTS INCREASED AT THE COMEX AND 2499 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN: 5667 CONTRACTS OR 566,700 OZ = 17.93 TONNES. AND ALL OF THIS VERY GOOD DEMAND OCCURRED WITH A LOSS IN THE PRICE OF GOLD/ MONDAY TO THE TUNE OF  $2.20

 

 

 

 

MONDAY, WE HAD 5426 EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JANUARY : 2499 CONTRACTS OR 249,900  OR 7.77 TONNES (1 TRADING DAYS AND THUS AVERAGING: 2499 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE HUGE SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 1 TRADING DAYS IN  TONNES: 7.77 TONNES

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

THUS EFP TRANSFERS REPRESENTS 7.77/2550 x 100% TONNES = 0.3047% OF GLOBAL ANNUAL PRODUCTION SO FAR IN DECEMBER ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     7.77  TONNES   *SURPASSED ANNUAL PROD’N

 

 

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 GOOD SIZED INCREASE IN OI AT THE COMEX OF 3268 DESPITE THE LOSS IN PRICING ($2.20) THAT GOLD UNDERTOOK MONDAY) //.WE ALSO HAD A VERY GOOD SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 2499 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 2499 EFP CONTRACTS ISSUED, WE HAD A STRONG GAIN OF 5767 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

2499 CONTRACTS MOVE TO LONDON AND 3268 CONTRACTS INCREASED AT THE COMEX. (in tonnes, the GAIN in total oi equates to 17.93 TONNES). ..AND ALL OF THIS GOOD  DEMAND OCCURRED WITH THE LOSS OF $2.20 IN MONDAY’S TRADING AT THE COMEX

 

 

we had: notice(s) filed upon for 700 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD UP $3.35 TODAY 

 

A GIGANTIC CHANGE IN GOLD INVENTORY AT THE GLD

A WHOPPER OF A DEPOSIT:  7.64 TONNES

THIS IS VERY GOOD FOR US/

 

 

 

 

 

 

 

 

 

 

 

/GLD INVENTORY   795.31 TONNES

Inventory rests tonight: 795.31 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 6  CENTS  TODAY:

 

 

NO CHANGES IN SILVER INVENTORY

 

 

/INVENTORY RESTS AT 317.223 MILLION OZ.

 

 

end

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

1. Today, we had the open interest in SILVER ROSE BY A GOOD SIZED 1910 CONTRACTS from 174,249 UP TO 176,159  AND MOVING CLOSER TO 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:

 

3227 CONTRACTS FOR MARCH. 0 CONTRACTS FOR APRIL AND  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 3227 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  OI GAIN AT THE COMEX OF 1910 CONTRACTS TO THE 3227 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A GOOD GAIN  OF 5,137  OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 16.13 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… OVER 2 million  OZ STANDING FOR THE NON ACTIVE MONTH OF OCTOBER.,  7.440 MILLION OZ FINALLY STANDING IN NOVEMBER.  21.925 MILLION OZ  STANDING IN DECEMBER AND 4.935 MILLION OZ STANDING IN JANUARY..

 

 

RESULT: A GOOD SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 6 CENT PRICING GAIN THAT SILVER UNDERTOOK IN PRICING// FRIDAY.BUT WE ALSO HAD ANOTHER STRONG SIZE 3227 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)WEDNESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 28.61 PTS OR 1.15% //Hang Sang CLOSED DOWN 715.35 POINTS OR 2.77% /The Nikkei closed DOWN 62.85 PTS OR .31%  / Australia’s all ordinaires CLOSED DOWN 1.47%

/Chinese yuan (ONSHORE) closed up  at 6.8576 AS TRUCE DECLARED FOR 3 MONTHS /Oil DOWN to 44.96 dollars per barrel for WTI and 53.36 for Brent. Stocks in Europe OPENED RED 

//ONSHORE YUAN CLOSED UP AT 6.8576 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8718: HUGE DEVALUATION/PAST SEVERAL DAYS RESUMES// TRADE TALKS NOW ON/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED   : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

 

 

 

 

 

 

 

3A/NORTH KOREA/SOUTH KOREA

i)North Korea/South Korea/USA/

 

 

 

b) REPORT ON JAPAN

 

 

 

3 C/  CHINA

i)CHINA/CANADA

A Canadian, Robert Schellenberg is now facing the death penalty after his original sentence of 15 years was deemed too light.  A British citizen was executed in 2009 for drug smuggling. It now looks like tensions between China and Canada are ratcheting up and this no doubt is China’s way of retribution against the arrest of Hauwei ‘s CF0 Meng

( zerohedge)

ii)Not good:  China is getting more war like:  a Chinese admiral wants to sink “two USA aircraft carriers” that are in the South China Sea

( zerohedge)

iii)TUESDAY NIGHT

In a landmark speech, Xi threatens violence as he wants to invade Taiwan.  He demands “peaceful” reunification. The markets are not too happy with this

( zerohedge)

iv)China has a housing crisis.  There are approximately 50 million apartments unoccupied.  Also 22% of all China’s housing market is unoccupied and yet prices are still rising but a much slower face.  This is an accident waiting to happen

(courtesy zerohedge)

4/EUROPEAN AFFAIRS

 

 

i)EU

Steve Keen is a great economist:  he talks about the lousy growth rate in the Eurozone

( Steve keen)

 

ii)The ECB takes the unprecedented step of putting insolvent Banca Carige in administration.  It is interesting that they could not find a partner for a measly 400 million euros.  This deepens the Italian banking crisis

( zerohedge)

 

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

i)Iraq/Syria/USA

This is a game changer;  Iraqi jets strike terrorists in Syria at the request of Syria’s Assad.  And Iraq is a USA ally?

( zerohedge)

 

 

6. GLOBAL ISSUES

 

 

 

7. OIL ISSUES

Strange events;        at exactly 10’clock the price of oil rose by 2 dollars per barrel without any reason.  Also it seems that two Chinese oil companies have been caught off guard with respect to losses in derivatives.  The Chinese government is afraid of contagion spreading on price????

 

(courtesy zerohedge)

 

 

8 EMERGING MARKET ISSUES

i)Venezuela

 

 

 

9. PHYSICAL MARKETS

i)Clint Siegner writes what we all are witnessing: fake markets and the return of the plunge protection team
( Money Metals/Siegner/GATA)

ii)This is is change;  the Indian government is now pondering ending its hostility to gold(Press Trust of India/GATA)

iii)Very surprising:  USA mint’s American eagle 2018 for gold and silver at 11 yr lows

(courtesy Reuters/gata)_

iv)Some states are now beginning to offer more sound money policies in competition to the fiat dollar

( Cortez/Mises/GATA)

v)A good history lessen as to how we knew manipulation was in the gold/silver market.  Both Reg Howe and myself had shares in the BIS and these crooks confiscated our shares.  Reg Howe argued our case of manipulation and not receiving fair value for our shares and we won at the Hague.  However we lost on a technicality in Boston.

this is a must read…

( Chris Powell)

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

 

 

MARKET TRADING

ii)Market data/

USA MFG  PMI plunges to a 15 month low

( zerohedge)

 

 

iii)USA ECONOMIC/GENERAL STORIES

a)A good look at the 1.5 trillion dollar student loan sector of the USA government.

( Simon Black)

b)Files related to the secret 9/11 attack have been hacked and this collective known as the Dark Overlord wants a hefty ransom in bitcoin.  If not paid, these will release large a large cache of internal files.
( zerohedge)
c)This is a biggy!! Repo rates soars to well above 6% from 2% as the yield curve goes absolutely nuts.  The rise in repo rates means that good collateral is waning
(courtesy zerohedge/2 commentaries)

d)Trump errs;  he believes that the stock market plunge  was due to trade wars..the stock market is faltering due to increases in the Fed interest rates( zerohedge)

iv)SWAMP STORIES

This is quite a story. Mueller got the shock of his life when Concord, a Russian owned American enterprise showed up to defends itself against the special prosecutor.  The lawyer for Concord ridicules Mueller as he is not allowed to see any evidence of their crime..

what nonsense…

( zerohedge)

 

 

E)SWAMP STORIES/MAJOR STORIES//THE KING REPORT

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN  ROSE BY A GOOD SIZED 3268 CONTRACTS UP to an OI level 451,360 DESPITE THE LOSS IN THE PRICE OF GOLD ($2.20) 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  NON ACTIVE DELIVERY MONTH OF JANUARY..  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 2499 EFP CONTRACTS WERE ISSUED:

FOR FEBRUARY:  2499 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  2499 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:  5767 TOTAL CONTRACTS IN THAT 2499 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A CONSIDERABLE SIZED 3268 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES: 5767 contracts OR 576,700  OZ OR 17.93 TONNES.

 

We are now in the NON active contract month of JANUARY and here the open interest stands at 359 contracts as we lost 61 contracts. We had 57 notices filed on Monday so we lost  4 contracts or 400 oz will not stand for delivery as these guys morphed into London based forwards and they also received a fiat bonus for their efforts.

 

The next active delivery month is February and here the OI FELL by 2653 contracts DOWN to 321,672 contracts.  After February, March received its initial 9 contracts to stand at 9.  After March, the next big delivery month is April and here the OI rose by 5653 contracts up to 62,958 contracts.

 

 

 

FOR COMPARISON TO THE  January 2018 contract month

 

 

ON JANUARY 1/2018: 1.297 TONNES STOOD FOR DELIVERY  (Jan 1 2019 initial standing 1.306 tonnes)

EVENTUALLY ON JAN 31.2018: 2.17 TONNES STOOD FOR DELIVERY AS QUEUE JUMPING STARTED IN EARNEST AT THE GOLD COMEX

 

 

WE HAD 7 NOTICES FILED AT THE COMEX FOR 700 OZ. (0.0217 tonnes)

 

 

 

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And now for the wild silver comex results.

Total silver OI rose BY A GOOD 1910 CONTRACTS FROM 174,249 UP TO 176,159 (AND CLOSER TO THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  (THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S OI COMEX GAIN  OCCURRED WITH A 6 CENT GAIN IN PRICING.

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF JANUARY AND THE  AMOUNT OF OPEN INTEREST READY TO STAND IS 885 CONTRACTS HAVING LOST ONLY 110 CONTRACTS FROM YESTERDAY.  WE HAD 102 NOTICES FILED ON MONDAY, SO WE LOST 8 CONTRACTS OR  40,000 OZ OF SILVER WILL NOT STAND FOR SILVER AS THESE GUYS MORPHED INTO LONDON BASED FORWARDS AS WELL AS RECEIVING A FIAT BONUS FOR THEIR EFFORTS.

 

 

THE NEXT NON ACTIVE DELIVERY MONTH IS FEBRUARY AND HERE THE OI FELL BY 1 CONTRACTS DOWN TO 498. AFTER FEBRUARY IS THE VERY BIG AND ACTIVE DELIVERY MONTH OF MARCH AND HERE THE OI ROSE BY 440 CONTRACTS UP TO 142,667 CONTRACTS.

 

 

ON A NET BASIS WE GAINED 5137 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A  1910 CONTRACT GAIN AT THE COMEX COMBINING WITH THE ADDITION OF 3227 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN ON THE TWO EXCHANGES:  5137 CONTRACTS...AND ALL OF THIS DEMAND OCCURRED WITH A 6 CENT GAIN IN PRICING// MONDAY

 

 

 

 

 

FOR COMPARISON TO THE COMEX 2017 CONTRACT MONTH AND JANUARY 2018 CONTRACT MONTH

 

 

 

ON FIRST DAY NOTICE JAN 1/2018 CONTRACT MONTH WE HAD A GOOD 2.695 MILLION OZ STAND FOR DELIVERY’

AT THE CONCLUSION OF JAN/2018 WE HAD 3.650 MILLION OZ STAND AS QUEUE JUMPING WAS THE NORM FOR SILVER

.

 

 

 

 

 

 

 

 

We had 14 notice(s) filed for 70,000 OZ for the FEB, 2018 COMEX contract for silver

 

 

Trading Volumes on the COMEX

 

PRELIMINARY COMEX VOLUME FOR TODAY: 228,347 contracts,

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  130.335  contracts

volumes at the comex for both gold and silver are much less than usual.

 

 

 

 

 

 

 

 

 

 

 

INITIAL standings for  JAN/GOLD

JAN 2-/2019.

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

 

 

 

 

 

Deposits to the Customer Inventory, in oz  

 

NIL

 

OZ

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No of oz served (contracts) today
7 notice(s)
 700 OZ
No of oz to be served (notices)
352 contracts
(35200 oz)
Total monthly oz gold served (contracts) so far this month
64 notices
5700 OZ
0.1990 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 entries:

 

 

total dealer deposits: NIL oz

total dealer withdrawals: 0 oz

We had 0 kilobar entries

 

we had 0 deposits into the customer account

 

total gold customer deposits;  NIL oz

 

we had 0 gold withdrawals from the customer account:

 

 

total gold withdrawing from the customer;  nil oz

 

we had 0  adjustments….

FOR THE DEC 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 7 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 2 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
To calculate the INITIAL total number of gold ounces standing for the JANUARY/2018. contract month, we take the total number of notices filed so far for the month (64) x 100 oz , to which we add the difference between the open interest for the front month of JAN. (359 contract) minus the number of notices served upon today (7 x 100 oz per contract) equals 40,900 OZ OR 1.2721 TONNES) the number of ounces standing in this NON  active month of JANUARY

 

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

No of notices served (64 x 100 oz)  + {420)OI for the front month minus the number of notices served upon today (7 x 100 oz )which equals 40,900 oz standing OR 1.2721 TONNES in this NON  active delivery month of JANUARY.

 

 

 

 

 

THERE ARE ONLY 23.372 TONNES OF REGISTERED COMEX GOLD AVAILABLE FOR DELIVERY AGAINST 1.2721 TONNES STANDING FOR JANUARY

 

 

total registered or dealer gold:  751,413/930 oz or   23.372 tonnes*
total registered and eligible (customer) gold;   8,434,261.646 oz 262.34 tonnes
In December  we had 23.374 tonnes of gold  SERVED UPON against dealer inventory of 23.373 tonnes and  no evidence of settlements.  We generally get a settlement when we see an adjustment from the dealer side to the customer side.. We have now gone through the entire month of December with only one tiny adjustment from a dealer to a customer account.  THERE WERE NO OTHER TRANSFERS TO INDICATE A SETTLEMENT.
Thus by the end of December we had:  23.374 tonnes of gold standing for metal against only 23.186 tonnes of dealer gold and .182 tonnes has been settled…(Dec 17)
We now add 1.306 tonnes of gold served upon against this same 23.301 tonnes available for delivery.
If you want to keep score:
December: 23.374 tonnes
January 1.2721 tonnes
total: 24.646 tonnes against inventory of 23.372 tonnes (registered)

IN THE LAST 27 MONTHS 92 NET TONNES HAS LEFT THE COMEX.

 

end

And now for silver

AND NOW THE NOV DELIVERY MONTH

JAN INITIAL standings/SILVER

JAN 2, 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
651,011.560 oz

 

 

Deposits to the Dealer Inventory
NIL oz
Deposits to the Customer Inventory
nil
oz
No of oz served today (contracts)
14
CONTRACT(S)
70,000 OZ)
No of oz to be served (notices)
871 contracts
4,355,000 oz)
Total monthly oz silver served (contracts) 116 contracts

(580,000 oz)

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

we had 0 inventory movement at the dealer side of things

 

total dealer deposits: NIL oz

total dealer withdrawals: 0 oz

we had 0 deposits into the customer account

 

i) Into JPMorgan: nil oz

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

JPMorgan now has 150.55 million oz of  total silver inventory or 51.03% of all official comex silver. (152.0 million/292 million)

 

ii) Into  everybody else:  zero oz

 

 

 

 

 

 

 

 

 

 

 

 

 

total customer deposits today: nil   oz

we had 2 withdrawals out of the customer account:
i) Out of CNT:  635,176.000 oz ???
ii) Out of Delaware:  15,835.560 oz

 

 

 

 

 

total withdrawals: 651,011.560   oz

 

we had 0 adjustments

 

total dealer silver:  81.854 million

total dealer + customer silver:  293.350 million oz

 

 

 

 

The total number of notices filed today for the JANUARY 2018. contract month is represented by 14 contract(s) FOR 70,000  oz

To calculate the number of silver ounces that will stand for delivery in JAN., we take the total number of notices filed for the month so far at 116 x 5,000 oz = 580,000 oz to which we add the difference between the open interest for the front month of JAN. (885) and the number of notices served upon today (14x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JANUARY/2018 contract month: 116(notices served so far)x 5000 oz + OI for front month of JAN( 885) -number of notices served upon today (14)x 5000 oz equals 4,935,000 oz of silver standing for the JANUARY contract month.  This is a strong number of oz standing for an off delivery month. We lost 8 contracts or an additional 40,000 oz will not stand for delivery and these guys morphed into London based forwards as well as receiving a fiat bonus for their efforts.

 

 

 

 

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

ESTIMATED VOLUME FOR TODAY:  xxx CONTRACTS  … again not available from cme

 

 

 

 

CONFIRMED VOLUME FOR YESTERDAY: 54,272 CONTRACTS… 

volumes at the comex very light considering the break out in silver.

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 54,272 CONTRACTS EQUATES to 271 million OZ  38.7 OF ANNUAL GLOBAL PRODUCTION OF SILVER

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

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

end

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV RISES TO -3.89-% (JAN 2/2018)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.93% to NAV (JAN /2018 )
Note: Sprott silver trust back into NEGATIVE territory at -3.89%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 13/07/TRADING 12.55/DISCOUNT 3.92

END

And now the Gold inventory at the GLD/

JAN 2.2019/WITH GOLD UP $3.35 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 7.64 TONNES/INVENTORY RESTS AT 795.31 TONNES

DEC 31/WITH GOLD DOWN $2.20 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 787.67 TONNES

DEC 28/WITH GOLD UP $2.20 STRANGELY A WITHDRAWAL OF 2.35 TONNES FROM THE GLD/INVENTORY RESTS AT 787.67 TONNES

DEC 27/WITH GOLD UP $8.65: A MASSIVE 15.88 TONNES WAS ADDED INTO THE GLD/INVENTORY RESTS AT 790.02 TONNES

DEC 26/WITH GOLD UP $0.15: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 774.14 TONNES

DEC 24/WITH GOLD UP $15.15: A HUGE DEPOSIT OF 5.00 TONNES INTO THE GLD/INVENTORY RESTS AT 774.14 TONNES

DEC 21/WITH GOLD DOWN $10.15 TODAY: A HUGE WITHDRAWAL OF 2.65 TONNES/INVENTORY RESTS AT 769.14 TONNES

DEC 20/WITH GOLD UP $11.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY AT 771.79 TONNES

DEC 19/WITH GOLD UP $3.15 TODAY: A HUGE DEPOSIT OF 8.23 TONNES OF GOLD ENTERED THE GLD/INVENTORY RESTS AT 771.79 TONNES

DEC 18/WITH GOLD UP $1.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 763.56 TONNES

DEC  17 WITH GOLD UP $10.60 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 763.56 TONNES

DEC 14/WITH GOLD DOWN $5.60: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 763.56 TONNES

DEC 13/WITH GOLD DOWN $2.00: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 763.56 TONNES

DEC 12/WITH GOLD UP $3.05 A HUGE DEPOSIT OF 3.24 TONNES OF GOLD INTO THE GLD/SOMETHING IS BURNING…/INVENTORY RESTS AT 763.56 TONNES

DEC 11/WITH GOLD DOWN $4.85 A SMALL DEPOSIT OF .59 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 760.32 TONNES

DEC 10/WITH GOLD DOWN $3.05 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 759.73 TONNES

DEC 7/WITH GOLD UP $8.35/A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.51 TONNES/INVENTORY RESTS AT 759.73 TONNES

DEC 6/WITH GOLD UP $1.60: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 758.21 TONNES

DEC 5/WITH GOLD DOWN $4.25: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 758.21 TONNES

DEC 4/WITH GOLD UP $7.25: A HUGE WITHDRAWAL OF 3.53 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 758.21 TONNES

DEC 3/WITH GOLD UP $13.25: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 761.74 TONNES

NOV 30/WITH GOLD DOWN $4.00: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 761.74 TONNES

NOV 29/WITH GOLD UP $1.30: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 761.74 TONNES

NOV 28/WITH GOLD UP $9.45 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 761.74 TONNES

NOV 27/WITH GOLD DOWN $8.60 A WITHDRAWAL OF 1.18 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 761.74 TONNES

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

JAN 2.2019/ Inventory rests tonight at 795.31 tonnes

*IN LAST 527 TRADING DAYS: 139.85 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 427 TRADING DAYS: A NET 20.15 TONNES HAVE NOW BEEN ADDED INTO THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

JAN 2/2019/WITH SILVER UP 10 CENTS TODAY/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 317.233 MILLION OZ/

DEC 31/WITH SILVER UP 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 317.233 MILLION OZ/

DEC 28/WITH SILVER UP 10 CENTS TODAY/NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 317.233 MILLION OZ/

DEC 27/WITH SILVER UP 22 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV: AN ADDITION OF 94,000 OZ/INVENTORY RESTS AT 317,233

DEC 26/WITH SILVER UP 27 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 317.139 MILLION OZ

DEC 21/WITH SILVER DOWN 14 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 317.139 MILLION OZ/

DEC 20/WITH SILVER UP 4 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.408 MILLION OZ OF SILVER FROM THE SLV/ INV. RESTS AT 317.139 MILLION OZ/

DEC 19/WITH SILVER UP 10 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 751,000 OZ INTO THE SLV./INVENTORY RESTS AT 318.547 MILLION OZ/

DEC 18/WITH SILVER DOWN 4 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 317.796 MILLION OZ/

DEC 17/WITH SILVER UP 13 CENTS TODAY/ A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 939,000 OZ FROM THE SLV/INVENTORY RESTS AT 317.796 MILLION OZ/.

DEC 14/WITH SILVER DOWN 22 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.735 MILLION OZ/

DEC 13/WITH SILVER UP 2 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.735 MILLION OZ/

DEC 12/WITH SILVER UP 22 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.735 MILLION OZ

DEC 11/WITH SILVER UP ONE CENT TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY ESTS AT 318.735 MILLION OZ/

DEC 10/WITH SILVER DOWN 8 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.735 MILLION OZ/

DEC 7/WITH SILVER UP 16 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 318.735 MILLION OZ/

DEC 6/WITH SILVER DOWN 5 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.817 MILLION OZ//INVENTORY LOWERS TO 318.735 MILLION OZ/

DEC 5/WITH SILVER DOWN 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 321.552 MILLION OZ.

DEC 4/WITH SILVER UP 10 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV:A WITHDRAWAL OF 134,000 OZ//INVENTORY RESTS AT 321.552 MILLION OZ/

DEC 3/WITH SILVER UP 29 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 321.686 MILLION OZ/

NOV 30/WITH SILVER DOWN 17 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.22 MILLION OZ FROM THE SLV /INVENTORY RESTS AT 321.686 MILLION OZ/

NOV 29/WITH SILVER DOWN 2 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 322.906 MILLION OZ.

NOV 28/WITH SILVER UP 23 CENTS TODAY: A DEPOSIT OF 188,000 OZ/INVENTORY RESTS AT 322.906 MILLION OZ/

NOV 27/WITH SILVER DOWN 14 CENTS TODAY: A HUGE WITHDRAWAL OF 2.301 MILLION OZ FROM THE SLV/INVENTORY RESTS AT 322.718 MILLION OZ/

 

 

JAN 2/2019:

 

Inventory 317.233 MILLION OZ

LIBOR SCHEDULE AND GOFO RATES:

 

 

THE RISE IN LIBOR IS CREATING A SCARCITY OF DOLLARS BECAUSE FOREIGN EXCHANGE SWAPS (COSTS) ARE SIMPLY PROHIBITIVE

YOUR DATA…..

6 Month MM GOFO 2.39/ and libor 6 month duration 2.88

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

G0LD LENDING RATE: + .49

 

 

XXXXXXXX

12 Month MM GOFO
+ 2.61%

LIBOR FOR 12 MONTH DURATION: 3.01

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.40

end

 

PHYSICAL GOLD/SILVER STORIES

end
i) GOLDCORE BLOG/Mark O’Byrne

Prepare For Global Debt Bubble Collapse – Outlook 2019

– Are we to prepare for a global Debt Bubble Collapse in 2019?
– 2019 to see the political and economic uncertainty of 2018 continue and likely to deepen
– Investors lulled into a false sense of security by politicians, brokers, bankers etc.
– Much “cheer leading” of the “economic recovery” narrative and by extension financial markets –  particularly property and stock markets
– Trade wars, currency wars, Brexit, Italexit, EU contagion are real risks
– Systemic risks posed by Deutsche Bank, Italian/ Irish etc. banks and indeed nations such as Italy, UK, US and the global debt bubble
– Risk assets and property to under-perform and precious metals to outperform
– Hope for best but be prepared for the worst by increased allocations to cash and gold

In the 10th Episode of The Goldnomics Podcast Mark O’Byrne and Stephen Flood are in conversation with Dave Russell as they look forward to 2019 and discuss what might be in store for financial markets if the trends from 2018 continue.

Listen to the full episode or skip directly to one of the following discussion points:

00:57 – Mark O’Byrne: What has 2019 got in store for us and are we expecting a global debt bubble collapse?

03:41 – Stephen Flood: Rising global debt level is unsustainable and several indicators point to a potential debt bubble collapse in 2019.

05:20 – Mark O’Byrne: Interest rate outlook for the next 12 months.

08:45 – Global debt level nears a quarter of a quadrillion ($250 trillion), 320% of total world output.

10:31 – Humongous debt and associated risks: what role are central banks playing?

11:05 – The end of quantitative easing: Any implication on the stock market?

12:30 – Interest rate hike in 2019: Are big banks insulated?

13:41 – Deutsch Bank: A potential cause of another financial liquidity crisis?

17:40 – Ramifications of a no-deal Brexit.

22:32 – Stephen Flood: Will a no-deal Brexit work out well for the UK in the medium/long term?

24:27 – No-deal Brexit and Bail-Ins: Should depositors and investors be concerned?

26:30 – How likely is it that impeachment proceedings will be instituted against Donald Trump in 2019?

31:30 – How good of a strategist is Donald Trump?

32:41 – Inequality and political events in USA: A peep through the lens of The Arc of Inequality.

36:23 – Instability, inequality and The Arc of Inequality: Looking at the role of populist leaders vs. central banks.

38:17 – Instability and inequality: Looking at the role of technological advancement and oligopolists.

40:51 – Globalization and progress in the east (Asia, India and China, etc.): A cause of reduced standard of living in the western world?

41:36 – De-dollarization of the global economy likely to continue in 2019.

45:13 – US to find it more difficult to fund budget deficits in future.

46:42 – Beyond the doom and gloom: where’s the bright spots out there?

49:50 – Asset allocation: How much should be invested in gold?

51:20 – Stock market advice from “experts”: Any need to be cautious?

52:41 – The implications of recent events for silver in 2019.

55:02 – Cryptocurrency: Outlook for Bitcoin in 2019.

58:01 – Silver vs. Bitcoin, which is a better investment option?

59:14 – Potential global financial crisis in 2019: what would be the main catalyst?

 

Make sure you don’t miss a single episode…… Subscribe to the Goldnomics Podcasts on iTunes, Soundcloud, or YouTube: https://soundcloud.com/goldcore-381451255

YouTube.com/user/GoldCoreLimited

 

Follow us on social media:

GoldCore on Twitter: https://twitter.com/goldcore

GoldCore on Facebook: https://www.facebook.com/GoldCore/

GoldCore on Linkedin: https://ie.linkedin.com/company/goldcore

Visit our website at: https://www.goldcore.com


Secure Storage Ireland – Click here for information

News and Commentary

Gold settles higher as Fed lifts a key interest rate (MarketWatch.com)

Stocks Retreat on Fears of Fed Mistake; Oil Slumps: Markets Wrap (Bloomberg.com)

Asia Stock Carnage Deepens as Hopes Fizzle With Policy Updates (Bloomberg.com)

Gold steadies, Fed signals ‘some’ rate hikes for 2019 (Reuters.com)

Fed lifts rates, now sees ‘some further’ hikes ahead (Reuters.com)


Source: Bloomberg

Gold Bulls Just Regained the Upper Hand (USFunds.com)

$7.9 trillion pile of negative-yielding debt is growing fast (Bloomberg.com)

China’s holdings of U.S. Treasuries fall to lowest since May 2017 (Bloomberg.com)

Investors Should ‘Run For Cover’ – Greenspan Warns after Yellen, IMF, BIS Warnings (CNBC.com)

Alan Greenspan Warns Investors: Bad Economic Times Are Looming (Fortune.com)

Jarring FedEx Outlook Cut Suggests “Severe Global Recession” (ZeroHedge.com)

France and the Crisis of Democracies (FPCS.es)

Brexit Bulletin: The Predictions Edition (Bloomberg.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

 
END
Jan 2

Hope For Best In 2019 But Prepare For Worst by Increased Allocations to Gold and Silver – Outlook 2019 Podcast

Prepare For Global Debt Bubble Collapse with Gold and Silver (Outlook 2019 Podcast)

– Risk assets and property to under-perform and precious metals to outperform (Outlook 2019 Podcast)
– Hope for best but be prepared for the worst by increased allocations to cash, silver and gold
– Market, economic and political uncertainty of 2018 continue and deepen
– Investors lulled into a false sense of security by politicians and assorted financial “experts2
– Much “cheer leading” of the “economic recovery” narrative and by extension markets –  particularly property and stock markets

– Trade wars, currency wars, Brexit, Italexit, EU contagion are real risks in 2019
– Systemic risks posed by Deutsche Bank, Italian/ Irish etc. banks and indeed nations such as Italy, UK, US and the global debt bubble

In the 10th Episode of The Goldnomics Podcast, GoldCore Founder Mark O’Byrne and GoldCore CEO Stephen Flood talk to with Dave Russell as they look forward to 2019 and discuss what might be in store for financial markets if the trends from 2018 continue.

Listen to the full episode or skip directly to one of the following discussion points:

00:57 – What has 2019 got in store for us and might there be a a global debt bubble collapse this year?

03:41 – Rising global debt level is unsustainable and several indicators point to a potential debt bubble collapse in 2019.

05:20 – Interest rate outlook for the next 12 months.

08:45 – Global debt level nears a quarter of a quadrillion ($250 trillion), 320% of total world output.

10:31 – Humongous debt and associated risks: what role are central banks playing?

11:05 – The end of quantitative easing: Any implication on the stock market?

12:30 – Interest rate hike in 2019: Are big banks insulated?

13:41 – Deutsch Bank: A potential cause of another financial liquidity crisis?

17:40 – Ramifications of a no-deal Brexit.

22:32 – Will a no-deal Brexit work out well for the UK in the medium/long term?

24:27 – No-deal Brexit and Bail-Ins: Should depositors and investors be concerned?

26:30 – How likely is it that impeachment proceedings will be instituted against Donald Trump in 2019?

31:30 – How good of a strategist is Donald Trump?

32:41 – Inequality and political events in USA: A peep through the lens of The Arc of Inequality.

36:23 – Instability, inequality and The Arc of Inequality: Looking at the role of populist leaders vs. central banks.

38:17 – Instability and inequality: Looking at the role of technological advancement and oligopolists.

40:51 – Globalization and progress in the east (Asia, India and China, etc.): A cause of reduced standard of living in the western world?

41:36 – De-dollarization of the global economy likely to continue in 2019.

45:13 – US to find it more difficult to fund budget deficits in future.

46:42 – Beyond the doom and gloom: where’s the bright spots out there?

49:50 – Asset allocation: How much should be invested in gold?

51:20 – Stock market advice from “experts”: Any need to be cautious?

52:41 – The implications of recent events for silver in 2019.

55:02 – Cryptocurrency: Outlook for Bitcoin in 2019.

58:01 – Silver vs. Bitcoin: Silver is a better investment option?

59:14 – Potential global financial crisis in 2019: what would be the main catalyst?

Make sure you don’t miss a single episode…… Subscribe to the Goldnomics Podcasts on iTunes, Soundcloud, or YouTube: https://soundcloud.com/goldcore-381451255

YouTube.com/user/GoldCoreLimited

 

Follow us on social media:

GoldCore on Twitter: https://twitter.com/goldcore

GoldCore on Facebook: https://www.facebook.com/GoldCore/

GoldCore on Linkedin: https://ie.linkedin.com/company/goldcore

Visit our website at: https://www.goldcore.com


Secure Storage Ireland – Click here for information

News and Commentary

Asia Stocks Fall as China Data Hits New Year Start (Bloomberg.com)

Asian shares blindsided by dismal China data (Reuters.com)

Democrats maneuver to end shutdown, without Trump wall money (Reuters.com)

U.S. Mint’s American Eagle 2018 gold, silver coin sales at 11-year lows (Reuters.com)

U.S. Stock Futures Slide With European Shares After China Data (Bloomberg.com)

Sydney Housing Slump Deepens as Prices Drop Most Since 1980s (Bloomberg.com)


Source: Bloomberg

Here’s how ugly 2018 was for stocks and other assets (MarketWatch.com)

For the 2019 economic outlook, don’t watch the stock market, watch the Fed (MarketWatch.com)

Troubled German lender Deutsche Bank can survive without a merger or a taxpayer bailout, chairman insists (ThisIsMoney.co.uk)

EU’s JUNCKER WARNS THAT WAR IN EUROPE IS NOT IMPOSSIBLE (Extra.ie)

What if nobody cares about market rigging? Do you? (Gata.org)

Indian government ponders ending hostility to gold (Gata.org)

New gold policy likely soon; looking at all aspects of yellow metal: Suresh Prabhu (MoneyControl.com)

Listen on SoundCloud , Blubrry & iTunesWatch on YouTube below

Gold Prices (LBMA PM)

31 Dec: USD 1,281.65, GBP 1,005.45 & EUR 1,120.03 per ounce
28 Dec: USD 1,277.25, GBP 1,009.16 & EUR 1,114.91 per ounce
27 Dec: USD 1,271.10, GBP 1,006.20 & EUR 1,115.26 per ounce
24 Dec: USD 1,261.25, GBP 996.26 & EUR 1,105.23 per ounce
21 Dec: USD 1,257.60, GBP 993.76 & EUR 1,101.53 per ounce
20 Dec: USD 1,255.00, GBP 988.69 & EUR 1,093.73 per ounce
19 Dec: USD 1,248.60, GBP 986.77 & EUR 1,094.65 per ounce

Silver Prices (LBMA)

31 Dec: USD 15.47, GBP 12.11 & EUR 13.51 per ounce
28 Dec: USD 15.30, GBP 12.05 & EUR 13.34 per ounce
27 Dec: USD 15.06, GBP 11.92 & EUR 13.22 per ounce
24 Dec: USD 14.68, GBP 11.60 & EUR 12.88 per ounce
21 Dec: USD 14.69, GBP 11.59 & EUR 12.86 per ounce
20 Dec: USD 14.77, GBP 11.64 & EUR 12.88 per ounce
19 Dec: USD 14.65, GBP 11.58 & EUR 12.84 per ounce


Recent Market Updates

– Prepare For Global Debt Bubble Collapse – Outlook 2019
– Happy Christmas From All The Team in GoldCore
– Gold Prices Likely To Go Higher In 2019 After 4% Gain In Q4 2018
– Everything Bubble Started Bursting In 2018 – GoldCore Video
– Global Financial System Is ‘Unstable’ and Risk Of ‘Clearing System Seizure’, BIS Warns
– Gold Flowing From West To East and Now To Goldman Sachs
– Brexit Risk Sees Gold Rise To Test EUR 1,100 Per Ounce
– Yellen Warns Another Financial Crisis Is Brewing
– Gold Krugerrand Coin Worth $1,200 Donated To Charity Again
– EU Recession Imminent – Euro Disunion as Brexit, Italy and End of QE Loom
– Gold and Silver Gained 2% and 3% Last Week While Stocks Dropped Nearly 5%
– Irish Central Bank Refuses To Discuss Gold Reserves In Bank of England Vaults
– “Fake Markets” To Lead to Global Financial Crisis? – Goldnomics Podcast

Watch on Youtube here

Mark O’Byrne
Executive Director
 
ii) GATA stories
Clint Siegner writes what we all are witnessing: fake markets and the return of the plunge protection team
(courtesy Money Metals/Siegner/GATA)

Clint Siegner: Fake markets and the return of the Plunge Protection Team

 Section: 

By Clint Siegner
Money Metals News Service, Eagle, Idaho
Monday, December 31, 2018

It’s amazing what passes as a market these days.

Stocks rallied during the Christmas week and the mainstream financial press would like you to believe bargain hunters swooped in after the weeks of heavy selling to grab some deals. The truth is there are very few actual people still evaluating the merits of publicly traded companies.

The markets are driven by programmed trading and central planning. The artificial nature of markets was on full display last week.

Let’s walk through the series of events. …

… For the remainder of the commentary:

https://www.moneymetals.com/news/2018/12/31/fake-markets-and-plunge-prot…

end

Some states are now beginning to offer more sound money policies in competition to the fiat dollar

(courtesy Cortez/Mises/GATA)

What states are doing to offer more currency competition

 Section: 

By J.P. Cortez
Mises Institute, Auburn, Alabama
Saturday, December 29, 2018

The destruction of sound money over the past century stems from actions at the federal level, but there are steps states can take — and even have already taken — to move toward real, sound, constitutional money.

As state legislatures reconvene in the next few weeks, let’s take a look at the current state of play.

Since 2016 sound money has made a splash on the state level. According to the 2018 Sound Money Index, a new ranking of all 50 states on the extent to which they have implemented the pro-sound money policies, there are currently 38 states with an exemption from sales and use taxes on the purchase of gold and silver.

Since 2016 legislators in 10 states have introduced bills, seven of which were signed into law, to restore sound money by eliminating taxes on gold and silver within their borders. …

… For the remainder of the commentary:

https://mises.org/wire/what-states-are-doing-offer-more-currency-competi…

* * *

END

This is is change;  the Indian government is now pondering ending its hostility to gold

(Press Trust of India/GATA)

Indian government ponders ending hostility to gold

 Section: 

New Gold Policy Likely Soon; Looking at All Aspects of Yellow Metal, Commerce Minister Says

From the Press Trust of India
via MoneyControl.com, Mumbai
Thursday, December 27, 2018

The government is working on an integrated gold policy, which is expected to be released soon, to promote growth of the yellow metal industry and exports of jewellery, Commerce and Industry Minister Suresh Prabhu said.

“We are pushing for it as we need an integrated policy. In the next few days we will have a meeting of all concerned people to frame the policy on an expeditious basis. We are looking at all elements of gold in the policy,” Prabhu told PTI.

When asked whether the policy will consider the demand of the industry to cut the import duty on gold, he said: “It will also look at that side of it.”

The domestic industry has demanded a cut in the import duty on gold to 4 percent from the current 10 percent.

The minister said that there is no such policy though India is the largest consumer and importer of gold.

India has the potential to become a “good exporter of value-added gold,” he added.

The policy is likely to focus on promoting the domestic gold industry and exports of gems and jewellery, which contribute about 15 percent to total merchandise exports.

In February, Finance Minister Arun Jaitley announced formulation of a comprehensive gold policy to develop gold as an asset class.

Government think-tank Niti Aayog in August suggested that the government to bring down the import duty on gold from 10 percent and asked to slash the goods-and-services tax rate on the precious metal from the current 3 percent.

The think-tank also recommended reviewing and revamping the gold monetization and the sovereign gold bond schemes, besides setting up a gold board and bullion exchanges across the country to have greater financialization of the yellow metal. …

… For the remainder of the report:

https://www.moneycontrol.com/news/economy/policy/new-gold-policy-likely-…

end

Very surprising:  USA mint’s American eagle 2018 for gold and silver at 11 yr lows

(courtesy Reuters/gata)_

U.S. Mint’s American Eagle 2018 gold, silver coin sales at 11-year lows

 Section: 

By Renita D. Young
Reuters
Monday, December 31, 2018

U.S. Mint sales of American Eagle gold and silver coins dropped to their lowest in 11 years during 2018, U.S. Mint data showed Monday, as investors favored higher-yielding assets despite global stock and bond market volatility late in the year.

Total 2018 sales of American Eagle gold coins sold by the U.S. Mint reached 245,500 ounces, the lowest on a year-over-year basis since 2007. The Mint sold 3,000 ounces of gold coins in December, 85.4 percent lower than November sales, the data showed.

Silver coin sales were 15.7 million ounces, also the lowest since 2007 on an annual basis, according to the U.S. Mint. December American Eagle silver coin sales reached 490,000 ounces, down 70.2 percent from the month prior. …

… For the remainder of the report:

https://www.reuters.com/article/us-usmint-coins/us-mint-american-eagle-2…

end

A good history lessen as to how we knew manipulation was in the gold/silver market.  Both Reg Howe and myself had shares in the BIS and these crooks confiscated our shares.  Reg Howe argued our case of manipulation and not receiving fair value for our shares and we won at the Hague.  However we lost on a technicality in Boston.

this is a must read…

(courtesy Chris Powell)

What if nobody cares about market rigging? Do you?

 Section: 

4:21p ET Tuesday, January 1, 2019

Dear Friend of GATA and Gold:

When GATA got started in January 1999 we figured that the rigging we saw in the gold and silver markets was the work of the big investment banks that heavily traded the monetary metals on the futures exchanges. Our idea was to gather evidence of their collusion and then sue them for triple damages under the Sherman Act, the Clayton Act, and the anti-trust laws of the 50 states.

Before long we realized that the U.S. government and allied governments were heavily involved in this rigging, just they had rigged the gold market in the era of the gold standard and the London Gold Pool of the 1960s, and that these governments likely were using the investment banks as brokers for manipulative interventions. So then we aimed to sue these governments as well and we hired a major anti-trust law firm to research the prospect.

… 

The advice from our lawyers was not encouraging. If the U.S. government was the main instigator of the market rigging, the lawyers said, it probably was legal under the Gold Reserve Act of 1934, which created the U.S. Treasury Department’s Exchange Stabilization Fund and authorized it to trade not just gold but anything deemed by the treasury secretary to bear on the stability of the dollar. The act authorized the fund to do such trading in secret, making it reportable only to the president.

Nevertheless, in 2000 our consultant Reginald Howe, a lawyer with a degree from Harvard, thought he saw an opportunity to get the gold manipulation issue into court. Howe happened to own shares of the Bank for International Settlements, ( and Harvey:  Reg owned 6 shares and I owned 2 shares) which was moving to expropriate those of its shares that were not already owned by governments. Howe knew that the BIS owned a lot of gold and figured that, because of the gold price suppression policy of Western governments, the price being offered by the bank to acquire the privately held shares grossly undervalued them.

Howe also figured that the Gold Reserve Act’s authorization for the U.S. government to trade in gold was not necessarily also authorization for the government to manipulate markets in violation of anti-trust principles.

So with GATA’s endorsement and support, Howe sued the BIS, the Treasury Department, the Federal Reserve, and five big investment banks in U.S. District Court in Boston, accusing them of rigging the gold market and thereby devaluing his shares of the BIS:

http://goldensextant.com/BIS-PFcase.html

A single hearing was held in the case — on November 5, 2001. Your secretary/treasurer attended and reported about it in detail, finding the hearing most notable for eliciting an assertion from an assistant U.S. attorney that the U.S. government claims authority, under the Gold Reserve Act, to trade gold in a way affecting its price — that is, claims the power to rig the gold market:

http://www.gata.org/node/4211

Of course this was just what our anti-trust law firm had cautioned us about.

The judge evaded the Howe lawsuit’s big issues and dismissed the case on a jurisdictional technicality. (An international arbitration later concluded that Howe was right, that the BIS was paying too little for the shares it was recalling.) But no one in authority had denied the main accusation of Howe’s lawsuit, and, indeed, to the contrary, the lawsuit had compelled the U.S. government to claim, in public, the power and right to rig the gold market.

That was a huge accomplishment. But it required GATA to change tactics from trying to get anti-trust law enforced in court to simple exposure of what the U.S. government and its allies were doing.

As a result GATA began researching the longstanding and continuing policy of gold-market rigging by governments, compiling confirmations from government archives and similar sources and admissions by central bankers themselves, which now are summarized here —

http://www.gata.org/node/14839

— and detailed here:

http://www.gata.org/taxonomy/term/21

Fittingly, the BIS continues to supply a monthly statement of account that, when compared to the previous month’s statement, discloses the bank’s constant if largely surreptitious intervention in the gold market on behalf of its member central banks, an inadvertently helpful monthly contribution to GATA’s documentation file.

Once GATA amassed so much documentation, we thought that surely mainstream financial news organizations would have to address it. Strangely, it seemed, they were not eager to do so — maybe because they did not understand how gold is a determinant of currency values, interest rates, and government bond prices. So in January 2008 we published a full-page, full-color advertisement in The Wall Street Journal, having gathered $264,000 to pay for it:

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

The ad had been your secretary/treasurer’s idea — and it proved to be a disaster. The ad may have been noticed — at least it has been viewed more than 372,000 times at GATA’s internet site — but it drew no response at all, not even from the Journal itself, not even an invitation to the newspaper’s ad department Christmas party that year.

Of course we should have known better. That $264,000 was but a tiny fraction of what JPMorganChase and the other gold-trading investment banks representing the U.S. government spend on advertising every year in the Journal and other mainstream financial news organizations. Then there is the government’s own opposition to raising the gold issue. Some mainstream news organizations will challenge the government on smaller matters, but gold-market rigging — the primary mechanism of rigging the currency and bond markets — seems to be considered the most sensitive issue of national security.

Now and then GATA does get attention from mainstream news organizations, and we seem to have been largely responsible for alerting certain governments to the gold suppression scheme, particularly Russia’s and China’s —

http://www.gata.org/node/4235

— which for years have been acquiring gold in large amounts, apparently in anticipation of big changes in the world financial system:

http://www.gata.org/node/11373

Other market participants may be acting quietly on GATA’s findings.

But lately we can’t entirely dismiss a disturbing thought: What if we got our wish and the major mainstream financial news organizations, from the Financial Times to Bloomberg News to The Economist, acknowledged prominently that central banks constantly intervene in the gold market to control the monetary metal’s price and protect their own currencies and bonds, primarily through derivatives trading, thereby effectively rigging allmarkets … and nobody cared, because everybody had been corrupted by the rigging?

What if free and transparent markets, limited and accountable government, and fair dealing among peoples and nations are just cliches from a bygone era?

Anyone can understand the demoralization of the monetary metals industry in recent years. But that demoralization would be unimportant compared to demoralization about free and transparent markets and limited and accountable government, values that are the prerequisites of human progress. No mere lawsuits and courts can preserve those values; they will survive only if they live in the hearts of enough people.

If those values do live there, exposure will work eventually, and GATA believes it is on the verge of compelling government to make its most incriminating admissions yet — or its most incriminating refusals to answer.

We mean to press on nevertheless, but we can’t do it well without financial support. So if you have not yet helped us, please consider doing it now:

http://www.gata.org/node/16

Even a $5 contribution will be more than GATA has received from Newmont Mining or Barrick Gold, companies that do nothing to fend off the great enemies of their investors. GATA will always do what it can, which has been and will remain far more than it ever was thought able to do.

We see dimly in the present what is small and what is great,
Slow of faith how weak an arm may turn the iron helm of fate.

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

end





iii) Other Physical stories
Due to the criminal conviction of trader Edmonds, the USA prosecution is seeking to halt the civil lawsuit. I was misinformed: all discoveries in a civil suit are public and because of that, the prosecution gives the defendants the right to plead the 5th if their testimony incriminates them
(courtesy zerohedge/Chris Powell)

US seeks halt in civil lawsuit accusing JP Morgan of manipulating metals market, citing criminal case

  • The U.S. wants a federal judge to halt a civil lawsuit accusing J. P. Morgan of manipulating precious metals markets. The Justice Department cited an ongoing criminal case as its reason for the request.
  • A former J. P. Morgan trader pleaded guilty in Connecticut last month to manipulation charges.
  • In the guilty plea, the trader said he had learned to make bogus trade orders from senior traders at the bank and that he used the strategy hundreds of times with the knowledge and consent of his immediate supervisors.

A sign of JP Morgan Chase Bank is seen in front of their headquarters tower in New York.

Amr Alfiky | Reuters
A sign of JP Morgan Chase Bank is seen in front of their headquarters tower in New York.

The Justice Department is asking a judge to put the brakes on a civil lawsuit against J. P. Morgan Chase, citing an ongoing probe into a “related criminal case” that involves alleged manipulation of precious metals markets.

The department wants a six-month postponement in the proceedings of the civil lawsuit, which was filed in 2015 by hedge fund manager Daniel Shak and two commodity traders. The government also says it could ask for a longer delay in the case, according to a court filing on Monday.

The move comes days after Shak’s lawyer, David Kovel, sought permission to reopen questioning of two former J. P. Morgan traders and the bank’s current global head of base and precious metals trading.

Kovel, in making the request with the Manhattan federal judge in the civil case, cited last month’s guilty plea by one of those former traders, John Edmonds, in federal court in Connecticut.

Edmonds admitted making bogus bids on precious metals contracts while working at the bank from 2009 to 2015.

Neither J. P. Morgan Chase nor Kovel’s clients have opposed the Justice Department’s request.

In arguing for a delay, the Justice Department said Shak’s lawsuit is “related” to Edmonds’ criminal case and that Edmonds has “pleaded guilty and acknowledged his own participation in such conduct, as well as that of other traders.”

“Edmonds awaits sentencing, but the broader investigation is ongoing,” the Justice Department said. The U.S. wants to delay the civil case “to protect the integrity of its ongoing criminal investigation,” it said.

J. P. Morgan did not respond to a request for comment by CNBC. Kovel declined to comment.

Tuesday night, after this story first was published, Judge Paul Engelmayer ordered the federal prosecutors to explain in detail by Monday why postponing proceedings in the civil lawsuit would not harm those involved, and why reopening questioning “would be detrimental to the Government’s ongoing criminal investigation.”

Englemayer also wrote that he regards Edmonds’ guilty plea “as potentially highly consequential” to the civil case.

In his guilty plea, the 36-year-old Edmonds said he had learned to make bogus trade orders from senior traders at the bank and that he used the strategy hundreds of times with the knowledge and consent of his immediate supervisors. He admitted to working with “unnamed co-conspirators” at J. P. Morgan, according to the Justice Department.

Kovel wants to question Edmonds again as well as Michael Nowak, the bank’s global head of base and precious metal trading, and former J. P. Morgan Chase Managing Director Robert Gottlieb. The three had previously answered questions under oath in the civil case.

Kovel said in court filings that Nowak was the immediate supervisor of Edmonds, while Gottlieb was Edmonds’ mentor.

In his prior deposition, Edmonds said that Gottlieb sat only a “couple feet” away from him for about five years, and that he was “somebody [he] looked up to in the business,” who helped guide and train him.

Nowak is described by Edmonds as his direct supervisor, with whom he would sometimes discuss trading strategies. Nowak was also the person responsible for overseeing the performance and risk of Edmonds’ portfolio, according to the deposition.

Edmonds also stated in his prior deposition that he would enter precious metals trades for both Nowak and Gottlieb, among others.

The civil lawsuit claims Shak and his fellow plaintiffs lost tens of millions of dollars as a result of actions by J. P. Morgan’s traders.

 

 

 

-END-

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

i) Chinese yuan vs USA dollar/CLOSED UP TO 6.8576/HUGE DEVALUATION FOR THE PAST FOUR WEEKS STOPS ON TRUCE/

//OFFSHORE YUAN:  6.8718   /shanghai bourse CLOSED DOWN 28.61 PTS OR 1.15%

 

HANG SANG CLOSED DOWN 715.35 POINTS OR 2.77%

 

 

2. Nikkei closed DOWN 62.85 PTS OR .31%

 

 

 

3. Europe stocks OPENED ALL RED 

 

 

 

 

 

 

/USA dollar index RISES TO 96.47/Euro FALLS TO 1.1406

3b Japan 10 year bond yield: FALLS TO. +.00/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 109.18/ 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:: 44.96 and Brent: 53.36

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

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

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

3h Oil 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 +.16%/Italian 10 yr bond yield DOWN to 2.71% /SPAIN 10 YR BOND YIELD DOWN TO 1.39%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.55: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 4.38

3k Gold at $1284.80 silver at:15.42   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 18/100 in roubles/dollar) 69.63

3m oil into the 44 dollar handle for WTI and 53 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 109.18 DESTROYING 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 0.9856 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1237 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 +0.16%

The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. Next step for Greece will be the recapitalization of the banks and that will be difficult.

4. USA 10 year treasury bond at 2.65% early this morning. Thirty year rate at 2.99%

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

6.  TURKISH LIRA:  UP  TO 5.3692

 

Global Market Bloodbath Returns As Futures Tumble, Asia Suffers Worst Start To Year Since 2016

Any hope for a reversal of the ominous market trends of last year and a positive start to 2019 were quickly dashed overnight when what was originally a gain of as much as 0.6% in S&P futures early in the session was promptly extinguished as futures slumped deep in the red alongside a sea of red in global stocks, after the Caixin China PMI manufacturing survey fell into contraction territory for the first time since May 2017, sending Asian stocks tumbling to the worst start to the year since 2016, while poor PMI reports out of Europe only confirmed that the global economy is slowing.

Weak manufacturing-activity surveys across Asia were followed by disappointing numbers in the euro zone, sending MSCI’s index of world shares 0.4% lower.

“The disappointment that came through in December has transferred into January as well,” said Jingyi Pan, a Singapore-based market strategist at IG Asia Pte. While there was some small development in uncertain Washington politics, it’s a reminder of the U.S.-China trade tensions and “brings back to the surface worries on growth,” she said.

Initially, S&P500 futures rose 0.6%, after President Trump invited the top congressional leaders from both parties to a White House briefing on border security Wednesday and suggested he wants to “make a deal” to end the government shutdown. However, this initial optimism faded quickly and futures fell as much as 2.3%, down almost 70 points from session highs reaching a low of 2,452 and trading down 1.4% last, after a closely watched index of Chinese manufacturing for small and medium enterprises had its lowest reading since May 2017, confirming a prior contractionary print from the official Chinese PMI which tracks larger companies. Nasdaq 100 Index futures and those on the Dow Jones dropped 2.2 percent and 1.5 percent respectively.

The overnight mood reversal took place after the Caixin China December manufacturing PMI fell to 49.7 from 50.2 in November, below the 50 “contraction” threshold for the first time since May 2017. That followed the official gauge, which unexpectedly fell into the same zone for the first time since July 2016 on Monday.

“The trend remains lower for now,” Kyle Rodda, an analyst at IG Group Holdings Plc, told Bloomberg TV. “We’ve had rate hikes from the Fed effectively priced out, so we are looking at a situation when markets are thinking that we are entering a period of slower growth.”

It wasn’t just China: Taiwan’s Nikkei and IHS Markit manufacturing purchasing managers’ index fell to 47.7 in December from 48.4 in November, down from 56.6 a year earlier, partly due to a fall in demand for machinery and electronics goods, along with information and communications equipment, amid slowing orders for new smartphones and the simmering trade war. Malaysia’s PMI fell to 46.8 from 48.2, its lowest reading since the series began. New orders were at their weakest since May. South Korea’s PMI remained in contractionary territory for the second consecutive month even as the overall reading nudged higher. Vietnam’s PMI fell to 53.8, while the Philippines PMI fell to 53.2.

“The PMIs are signaling trouble ahead,” said Hak Bin Chua, an economist at Maybank Kim Eng Research. “There have been some healthy trade numbers in some countries, but this is probably short-lived.”

As a result, the benchmark gauge of Asia-Pacific stocks excluding Japan slumped 1.9 percent as traders returned to work in key regions including Hong Kong, China, Taiwan and Korea. Japan markets are closed and reopen on Jan. 4.  Wednesday’s plunge, which is the worst start to the year since 2016 was largely the result of the abovementioned plunge in the Chinese Caixin PMI.

“Asian markets took a deep dive into negative territory following another disappointing China Caixin manufacturing PMI reading,” said Margaret Yang, market analyst at CMC Markets, in a note to clients. “China manufacturing PMI is falling at a pace faster than economists’ forecast, suggesting global economic slowdown and trade war is hurting the country’s manufacturing activities.”

Chinese H shares lost 2.8% and Shanghai Composite dropped 1.3% after Caixin manufacturing PMI signals contraction for the first time since May 2017. S&P futures reverse early rally to trade 0.8% weaker; MSCI Asia Pacific index falls 0.9% with Japan and New Zealand markets closed for New Year holidays.

Understandably, U.S.-listed China stocks were among the biggest decliners in Wednesday’s pre-market trading as the iShares China Large-Cap ETF fell 2.5% to its lowest since October before paring the decline; the iShares MSCI Emerging Market ETF fell 1.4%. Stocks trading lower included NIO -4.6%, BiliBili -3.4%, Huya -3.1%, Pinduoduo -2.8%, Tencent Music -2.8%, iQIYI -2.2%, Alibaba -1.8%, Qudian -1.6%, Momo -1.3%

Adding to global growth concerns, Singapore’s export-reliant economy grew only 1.6% in the 4th quarter, down sharply from a revised 3.5% previously, and far below the 3.6% expected print.

The Asian gloom continued in Europe, where stocks also dropped with the Stoxx Europe 600 index trading 0.8% lower, dragged by growth sensitive sectors such as basic resources and autos. Banks and insurers were among the laggards after Europe’s PMI readings confirmed the weakness reported earlier in China, with Italy contracting, while France’s survey signaled activity shrank for the first time since late 2016. The euro-zone reading reached its lowest since February 2016. Future output PMIs were at a six-year low.

View image on TwitterView image on TwitterView image on Twitter

IHS Markit PMI™@IHSMarkitPMI

#Eurozone Manufacturing #PMI at 51.4 in December. New work declines for third month running; business sentiment hits fresh six-year low. Italy remained in contraction territory and was also joined by France http://ihsmark.it/OfDm50k55pO

There were also renewed fears in Europe over the clean-up of Italy’s banks, with trading in shares of Banca Carige suspended. Carige failed last month to win shareholder backing for a share issue that was part of a rescue plan. An index of Italian bank shares fell 2.5 percent.

“It’s a continuation of the worries over growth. You can see them in the Asian numbers, which all confirm that we have passed peak growth levels,” said Tim Graf, chief macro strategist at State Street Global Advisors. The knock-on effects from China’s slowdown and global trade tensions were rippling across Asia and Europe, he said. “I don’t think the trade story goes away, and Europe, being an open economy, is still vulnerable,” Graf said.

The data suggests there will be no respite for equities or commodities after the losses of 2018, with “Doctor” Copper, a key gauge of world growth sentiment, falling to 3 1/2-month lows , while Brent crude futures fell 1 percent after losing 19.5 percent in 2018

Commodity-driven currencies also lost ground, led by the Australian dollar. Often used as a proxy for China sentiment, the Aussie fell as much as 0.7 percent to its lowest since February 2016 at $0.70015.

Meanwhile, the continuation of the stock market rout again drove investors into the safety of bonds. The 10-year German Bund yield slumped to 20-month lows of 0.18 percent, its biggest one-day fall in two years, while the US 10Y yield dropped below 2.65%, the lowest level since January 2018.

2Y TSY yields were 2.49% , just barely above the cash rate, from a peak of 2.977% in November. The spread between two- and 10-year yields has in turn shrunk to the smallest since 2007, a flattening that has been a portent of recessions in the past. The German 2-10 yield curve is the flattest since November 2016.

Gold and the yen were the other beneficiaries, with the Japanese currency – the best performer of 2018 – continuing its outperformance in 2019 – and while gold topped six-month highs, the yen extended its rally against the dollar to seven-month highs around 108.9. It strengthened to a 19-month peak against the euro.

“Traditional safe-haven type flows are going into the yen. As we see increased volatility (on world markets), the Japanese (investors) are probably repatriatriating foreign assets,” said Charles St Arnaud, senior investment strategist at Lombard Odier Investment Managers.

Meanwhile, after some early weakness, the dollar inched up against a basket of currencies with the Bloomberg dollar index rising to session highs, just above 1197. The greenback has come under pressure from a fall in U.S. Treasury yields as investors wager the Federal Reserve will not raise rates again. While the Fed itself still projects at least two more hikes, money markets now imply a quarter-point cut by mid-2020.

Fed Chairman Jerome Powell may comment on the outlook when he takes part in a discussion with former Fed chairs Janet Yellen and Ben Bernanke on Friday, while the manufacturing survey and the December payrolls report should shed more light when they emerge on Thursday and Friday respectively.

“What is clear is that the global synchronized growth story that propelled risk assets higher has come to the end of its current run,” OCBC Bank told clients. “Inexorably flattening yield curves … have poured cold water on further policy normalization going ahead.”

Market Snapshot

  • S&P 500 futures down 1.5% to 2,468.25
  • STOXX Europe 600 down 1.1% to 334.12
  • MXAP down 0.9% to 145.48
  • MXAPJ down 1.8% to 468.48
  • Nikkei down 0.3% to 20,014.77
  • Topix down 0.5% to 1,494.09
  • Hang Seng Index down 2.8% to 25,130.35
  • Shanghai Composite down 1.2% to 2,465.29
  • Sensex down 0.8% to 35,950.08
  • Australia S&P/ASX 200 down 1.6% to 5,557.76
  • Kospi down 1.5% to 2,010.00
  • German 10Y yield fell 6.3 bps to 0.179%
  • Euro down 0.2% to $1.1438
  • Italian 10Y yield unchanged at 2.384%
  • Spanish 10Y yield fell 0.9 bps to 1.407%
  • Brent Futures down 1.4% to $53.05/bbl
  • Gold spot up 0.4% to $1,288.01
  • U.S. Dollar Index up 0.1% to 96.18

Top Overnight News from Bloomberg

  • Factory conditions across some of Asia’s most export-oriented economies slumped in December, hit by the U.S.-China trade war and a fading technology boom.
  • In China, the Caixin Media and IHS Markit PMI fell to 49.7 from 50.2, its lowest reading since May 2017. That confirms a trend seen in the official PMI on Monday, which showed a drop to 49.4 in December, the weakest since early 2016
  • U.S. stock-index futures erased earlier gains after Caixin PMI dropped into contraction territory, fueling global growth concerns
  • President Donald Trump invited the top congressional leaders from both parties to a White House briefing on border security Wednesday and suggested he wants to “make a deal” to end the government shutdown
  • President Sergio Mattarella, who has sought to rein in Italy’s populist leaders, took the government to task for ramming spending plans through parliament and warned that the country’s debt mountain penalizes ordinary citizens
  • The lackluster demand for Asian dollar bonds is likely to recover as investors who shunned weaker quality notes during the turbulent final quarter of 2018 now see them as too cheap to ignore. Asia dollar bond sales may total $250 billion to $300 billion in 2019, according to a Bloomberg survey
  • Yen rises versus all major peers after China’s Caixin manufacturing PMI fell into contraction territory, adding to the weight of other data signaling a slowing Chinese economy and driving demand for haven assets. Aussie leads declines against the dollar, nearing a 70 cents psychological level.
  • The European Central Bank took the unprecedented step of placing the cash-strapped Italian lender Banca Carige SpA in temporary administration, a move that could be a prelude to a sale or merger.

Stocks in developing nations fell the most in three weeks as new evidence of slowing Chinese growth compounded investor fears about prospects for the global economy. A closely watched manufacturing gauge in China had its lowest reading since May 2017 amid ongoing trade tensions with America. MSCI’s gauge of stocks slumped after closing out 2017 with four straight days of gains, with shares in Johannesburg tumbling more than three percent. Most emerging-market currencies weakened against the dollar led by Turkey’s lira, while the zloty extended losses versus the euro after Poland’s manufacturing PMI dropped to its lowest mark since 2013. “The disappointment that came through in December has transferred into January as well,” said Jingyi Pan, a Singapore-based market strategist at IG Asia Pte. Political developments in Washington served as a reminder of the U.S.-China trade tensions and brought “back to the surface worries on growth,” she said.

Top Asian News

  • China Leads Slump in Asia Factories as Trade War Cools Demand
  • Singapore’s Export-Reliant Economy Ends 2018 With Slower Growth
  • China’s Xi Seeks Talks to Unify Taiwan With Mainland
  • Asia’s Stocks Post Worst Start to Year Since 2016: Blame China

Major European Indices [Euro Stoxx 50 -0.4%] are in the red following on from the poor performance seen in Aisa. (Of note the SMI remains closed due to Berchtold’s day). The CAC (-1.4%) is underperforming its peers with index heavyweight Renault (-3.2%) towards the bottom of the index as the Co’s Renault-Samsung Motors division reported a significant decrease in year-on-year sales for December; in addition, the political situation remains fraught in France. Sectors are also in the red, with some underperformance seen in materials and energy names due to Chinese Manufacturing PMI showing a contraction, and oil prices in the red due to continued oversupply concerns respectively.

Top European News

  • Italian Populist Di Maio Promises to Cut Pay for Lawmakers
  • Italian Manufacturing Shrinks Again as Nation Nears Recession
  • European Banks Stock Drops as Banca Carige Gets Administrators
  • German Telecom Companies Sue Regulator Over 5G Auction Rules

In FX, DXY entered the EU session on the backfoot with losses of around 0.3% and below the 96.00 level with JPY out-muscling the greenback during Asia-Pac trade as USD/JPY hit a 7-month low.

  • JPY strength was largely driven by the broader risk environment as disappointing Chinese data overnight and the ongoing US government shutdown remain a key focus for investors. As the European session progressed, USD made a resurgence against its peers (ex-JPY) as losses in European equities accelerated following the cash open; DXY reclaimed 96.00 to the upside and trades relatively unchanged.
  • EUR/USD eventually fell victim to the recovery in the USD (after testing 1.1500 to the upside during Asia-Pac trade) as the pair slipped below 1.1450 with some analysts also suggesting EUR/JPY selling as a potential catalyst for the move. As such, the pair has drifted towards 675mln of option expiries between 1.1452-30 with this morning’s PMI metrics from the Eurozone unable to spur much in the way of noteworthy price action with core readings unrevised from their prior’s.
  • For GBP/USD, the pair began the session on the backfoot and slipped back below 1.2700 despite a high print of 1.2774 seen during Asia-Pac hours. Brexit-related commentary has been relatively light thus far with Parliament not returning from their winter break until 7th Jan. As such, the most interesting development for UK assets today has been the latest manufacturing PMI print which came in at 54.2 vs. Exp. 52.5 (Prev. 53.1). Cable briefly reclaimed 1.2700 to the upside before reversing gains with a pick-up in new orders largely attributed to stock-piling ahead of Brexit.
  • AUD/USD fell victim to the disappointing Chinese data overnight which saw Caixin mfg PMI slip into contractionary territory for the first time in 19 months. Losses were also spurred on by the aforementioned pick-up in USD, however, the pair maintains its status on a 0.7000 handle with option-related bids ahead of the key level said to have stopped the rot in the pair.

In commodities, Brent (-1.0%) and WTI (-1.0%) prices are down due to oversupply concerns as US output continues to increase, with US output reaching an all-time high of 11.5mln BPD in October and Russia’s December production of 11.45mln BPD vs. Prev. 11.37mln BPD. Prices are additionally weighed on by signs of a economic slowdown in China, with a Reuters survey of analysts forecasting 2019 average Brent prices at just over USD 69 a barrel; a drop of over USD 5 compared with the previous projection. UAE Energy Minister Mazrouei says that in light of the agreed OPEC+ production cut he is optimistic that oil market balance can be achieved in the first quarter of 2019. Gold (+0.4%) is in the green due to dollar weakness albeit just off of USD 1287.39/oz a 6-month high which was reached earlier in the session. Elsewhere, copper prices have moved lower as Chinese Manufacturing PMI has fallen into a contraction for the first time in 19 months.

US Event Calendar

  • 9:45am: Markit US Manufacturing PMI, est. 53.9, prior 53.9

3. ASIAN AFFAIRS

i)WEDNESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 28.61 PTS OR 1.15% //Hang Sang CLOSED DOWN 715.35 POINTS OR 2.77% /The Nikkei closed DOWN 62.85 PTS OR .31%  / Australia’s all ordinaires CLOSED DOWN 1.47%

/Chinese yuan (ONSHORE) closed up  at 6.8576 AS TRUCE DECLARED FOR 3 MONTHS /Oil DOWN to 44.96 dollars per barrel for WTI and 53.36 for Brent. Stocks in Europe OPENED RED 

//ONSHORE YUAN CLOSED UP AT 6.8576 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8718: HUGE DEVALUATION/PAST SEVERAL DAYS RESUMES// TRADE TALKS NOW ON/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED   : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

3 a NORTH KOREA/USA

 

 

i)North Korea/South Korea/USA/

3 b JAPAN AFFAIRS

3 C CHINA

Monday night

A Canadian, Robert Schellenberg is now facing the death penalty after his original sentence of 15 years was deemed too light.  A British citizen was executed in 2009 for drug smuggling. It now looks like tensions between China and Canada are ratcheting up and this no doubt is China’s way of retribution against the arrest of Hauwei ‘s CF0 Meng

(courtesy zerohedge)

 

 

Canadian Facing Death Penalty For Drug Smuggling As China Orders Retrial

A Chinese court has ordered a retrial for a Canadian national accused of smuggling “an enormous amount of drugs” into the Communist nation, arguing that his initial sentence of 15 years imprisonment followed by immediate deportation was too light.

The sentence, which had not been previously reported, was apparently handed down on Nov. 20. But at a hearing on Saturday, the Canadian citizen, Robert Schellenberg, prosecutors accused him of playing a key role in a major drug smuggling operation and argued that his sentence was far too light, according to Reuters.

The Associated Press reported that few details about Schellenberg’s case have been released.

Robert Lloyd Schellenberg was tried in 2016 but his case has been publicized by the Chinese press following the Dec. 1 arrest of the chief financial officer of tech giant Huawei on U.S. charges related to trading with Iran.

Drug offenses are typically punished severely in China, and drug smuggling offenses are often met with the death penalty – as in the case of a British national who was put to death in 2009 for smuggling more than 4,000 grams of heroin into the country. The initial sentence was handed down by the high court in Dalian, the top court in the northeastern province of Laioning.

Canada

The Canadian government said it has been offering consular support to Schellenberg in the case, and that it has also been in contact with Chinese officials. Canadian diplomats were at the court when the retrial was ordered. Canada has been following the case for several years, but said it couldn’t offer any more details citing privacy concerns.

Though some fear that a retrial could heighten tensions between China and Canada after China detained two Canadians on charges of endangering national security, Ottawa celebrated a decision by Beijing to release a third Canadian who had been detained for allegedly working illegally in the country. China said her deportation would be counted as an “administrative punishment.”

In one development that could lessen tensions, a Canadian government spokesman said on Friday that a Canadian citizen who was detained in China this month had returned to Canada after being released from custody.

The spokesman did not specify when the Canadian was released or returned to Canada. Earlier in the day, broadcaster CBC identified the citizen as teacher Sarah McIver.

China’s Foreign Ministry said this month that McIver was undergoing “administrative punishment” for working illegally.

McIver was the third Canadian to be detained by China following the Dec. 1 arrest in Vancouver of Meng Wanzhou, chief financial officer of the Chinese telecommunications giant Huawei Technologies Co Ltd [HWT.UL], but a Canadian official said there was no reason to believe that the woman’s detention was linked to the earlier arrests.

Foreign Minister Chrystia Freeland didn’t mention the woman last week when she demanded that Beijing release the detained Canadians, though she did reveal that the former diplomat and businessman currently in custody in Beijing had only been allowed one visit with consular officials.

Beijing is still seething over Canada’s decision to arrest Huawei CFO Meng Wanzhou at the behest of the US. She is now out on bail as she awaits extradition. Should Schellenberger face the death penalty, it would likely ratchet up tensions between Ottawa and Beijing, which has threatened “escalation” in its ongoing diplomatic dispute with Canada.

end

Not good:  China is getting more war like:  a Chinese admiral wants to sink “two USA aircraft carriers” that are in the South China Sea

(courtesy zerohedge)

Chinese Admiral Wants To “Sink Two US Aircraft Carriers” Over South China Sea

Mere days after Chinese President Xi Jinping vowed to “resolutely” defend China’s security interest – a veiled reference to maintaining its domination of the South China Sea – News.au has published details from a speech delivered two weeks ago by one of China’s leading military commanders where he outlined a strategy to rebuff the US Navy should it take an even more interventionist posture within the nine-dash line.

Nine

Rear Admiral Lou Yuan told an audience in Shenzhen that the simmering dispute over the East and South China Seas could be decisively ended by sinking two US aircraft carriers.

Taiwan’s Central News Agency reported that Admiral Lou gave a long speech on the state of Sino-US relations, where he declared that the trade spat was “definitely not simply friction over economics and trade,” but a “prime strategic issue.” And that if China wants the US to back off, it must be willing to attack US ships when they intrude in Chinese territory.

China

During the Dec. 20 speech to the 2018 Military Industry List summit, Lou declared that China’s anti-ship ballistic and cruise missiles were capable of hitting US carriers, even when they were in the middle of a “bubble” of defensive escorts.

“What the United States fears the most is taking casualties,” Admiral Lou declared.

He said the loss of one super carrier would cost the US the lives of 5000 service men and women. Sinking two would double that toll.

“We’ll see how frightened America is.”

Lou also explained what he described as the US’s five vulnerabilities, and insisted that China must not hesitate to strike back at any of them should a US fleet even dare to stop in Taiwan.

In his speech, he said there were ‘five cornerstones of the United States’ open to exploitation: their military, their money, their talent, their voting system — and their fear of adversaries.

Admiral Lou, who holds an academic military rank – not a service role – said China should “use its strength to attack the enemy’s shortcomings. Attack wherever the enemy is afraid of being hit. Wherever the enemy is weak …”

“If the US naval fleet dares to stop in Taiwan, it is time for the People’s Liberation Army to deploy troops to promote national unity on (invade) the island,” Admiral Lou said.

Should Taiwan become increasingly restive, China possesses the capability to stage  a military takeover of the island in 100 hours, Lou said. This eventuality is more likely than many might believe, Lou said, adding that 2018 could be a “year of turmoil” for Taiwan, and that a military conflict was possible.

“Achieving China’s complete unity is a necessary requirement. The achievement of the past 40 years of reform and opening-up has given us the capability and confidence to safeguard our sovereignty. Those who are trying to stir up trouble in the South China Sea and Taiwan should be careful about their future.”

“The PLA is capable of taking over Taiwan within 100 hours with only a few dozen casualties,” said retired lieutenant general Wang Hongguang.

“2018 is a year of turmoil for Taiwan, and a possible military conflict may take place in Taiwan soon. (But) As long as the US doesn’t attack China-built islands and reefs in the South China Sea, no war will take place in the area.”

US military commanders have long warned that China’s growing military presence in the Pacific is a serious threat to US security, and China has underscored these concerns by organizing military drills explicitly to threaten Taiwan. Indeed, a military conflict with China remains one of the most widely cited “black swan” risks to global security – a possibility that has only been exacerbated by the trade conflict.

end

 

TUESDAY NIGHT

In a landmark speech, Xi threatens violence as he wants to invade Taiwan.  He demands “peaceful” reunification. The markets are not too happy with this

(courtesy zerohedge)

 

In Landmark Speech, Xi Threatens Violence Against Taiwan, Demands ‘Peaceful Reunification’

With trade talks between the US an China finally ramping up, reviving hopes that a deal might end a slump in global equity markets that has carried into the New Year, one would think ‘Taiwan’ would be the last word any investor wanted to hear. But we’ve been hearing it with an alarming frequency lately. From a belligerent Chinese admiral and from President Xi Jinping.

And in a Wednesday speech to commemorate the fortieth anniversary of a landmark shift in China’s Taiwan policy, President Xi offered a vision of the future relationship between China and Taiwan that blatantly contradicts what Taiwan wants for itself – which is, more autonomy, if not outright independence, as the ruling pro-independence party has repeatedly insisted.

Xi

Instead, Xi insisted during his speech that China reserves the right to use force to bring Taiwan to heel – but that peaceful “reunification” would be Beijing’s goal. Xi has made resolving the “Taiwan issue” a priority.

Taiwan

Here’s Reuters:

China reserves the right to use force to bring Taiwan under its control but will strive to achieve peaceful “reunification” with the self-ruled island that has a bright future under any future Chinese rule, President Xi Jinping said on Wednesday.

Taiwan is China’s most sensitive issue and is claimed by Beijing as its sacred territory. Xi has stepped up pressure on the democratic island since Tsai Ing-wen from the pro-independence Democratic Progressive Party became president in 2016.

Tsai rejected Xi’s call and instead urged China to embrace democracy.

Xi has set great personal store in resolving what the Communist Party calls the “Taiwan issue,” holding a landmark meeting with then Taiwan president Ma Ying-jeou in Singapore in late 2015, just before Tsai was elected.

Xi argued during his speech that the “one country, two systems” model of governing Hong Kong would be ideal for Taiwan (something that the people of Taiwan vehemently oppose). Xi told the audience, which included Taiwanese business people, that independence for Taiwan would be “a disaster”.

Xi spoke at Beijing’s Great Hall of the People on the 40th anniversary of a landmark Taiwan policy statement.

He said “reunification” must come under a one-China principle that accepts Taiwan as part of China, anathema to supporters of Taiwan independence, adding that the “one country, two systems” model of autonomy, with which China governs Hong Kong, was the best way for Taiwan.

China translates the word “tong yi” as “reunification,” but it can also be translated as “unification,” a term in English preferred by supporters of Taiwan independence who point out the Communist government has never ruled Taiwan and so it cannot be “reunified.”

The vast majority of Taiwan’s people are clearly aware that Taiwan independence would lead to a “grave disaster,” Xi told an audience that included Taiwan business people and senior party officials.

And while “Chinese people don’t attack Chinese people,” Xi said China’s military wouldn’t hesitate to resort to violence against foreign interlopers – a veiled reference to the US.

“Chinese people don’t attack other Chinese people. We are willing to use the greatest sincerity and expend the greatest hard work to strive for the prospect of peaceful reunification,” Xi said.

“We do not promise to renounce the use of force and reserve the option to use all necessary measures” to achieve this goal and prevent Taiwan independence, he said.

This, though, was aimed at foreign forces who sought to interfere and the tiny minority of Taiwan independence forces and their activities, Xi said without elaborating in what was likely a reference to the United States, Taiwan’s strongest backer.

In what experts said marked his first overt hint that China actively interferes with elections in Taiwan, Xi said the mainland had succeeded in “frustrating” Taiwan’s independence movement and “other separatist activities,” according to CNN.

During his speech, Xi said China had “achieved a great victory in frustrating the Taiwan independence movement and other separatist activities.”

Lev Nachman, a Taiwan specialist and PhD student in Political Science at the University of California Irvine, said this appeared to be an oblique acknowledgment of interference in the island’s politics.

“I am not sure we are going to get a more clear direct admittance from Xi himself that the (Chinese Communist Party) interferes with Taiwan’s democratic elections,” he said. “This is something we have always known was a phenomenon, but never really had any ‘hard proof.'”

Meanwhile, Xi’s speech followed a new year’s address delivered by Taiwanese President Tsai Ing-wen, who called on Beijing to “face the reality of the existence of the Republic of China.” Her remarks come after her pro-independence party suffered a serious defeat in elections last fall, where voters expressed support for closer ties with Beijing.

Xi’s speech comes a day after Taiwanese President Tsai Ing-wen gave her own New Year’s address, in which she called on Beijing to “face the reality of the existence of the Republic of China,” referring to the island by its official name. She also urged that Beijing to “respect the commitment of the 23 million people of Taiwan to freedom and democracy.”

Tsai resigned as head of the Democratic Progressive Party (DPP) in November after the historically pro-independence party suffered a crushing defeat in local government elections, which also saw voters reject a proposal for the island to compete in international sporting events as “Taiwan” rather than “Chinese Taipei,” a moniker adopted after pressure from Beijing.

While she acknowledged the elections were a “serious test for the current government,” Tsai said the results “absolutely do not mean that grassroots public opinion in Taiwan favors abandoning our sovereignty, nor do they mean that the people want to make concessions regarding Taiwanese identity.”

Though giving up some of their freedoms might seem daunting, Xi tried to assure Taiwan that there was “nothing to fear” from reunification with Beijing – and that they would enjoy even greater economic prosperity under “one country, two systems”. And while Xi said he’d be willing to give Taiwan “broad latitude” for peaceful reunification, China absolutely would not tolerate “any form of separatist activities.”

This much is clear: While Taiwan is satisfied with the status quo, Beijing is growing increasingly uneasy – evidenced by Beijing’s incessant military posturing in the Strait of Taiwan. And if markets are fearful about a collapse in the global trading order due to the US-China trade spat, imagine how they would react to saber-rattling between Beijing and Washington over Taiwan.

end’
China has a housing crisis.  There are approximately 50 million apartments unoccupied.  Also 22% of all China’s housing market is unoccupied and yet prices are still rising but a much slower face.  This is an accident waiting to happen
(courtesy zerohedge)

China Issues A Stark Warning About Its Housing Sector

Something is afoot with China’s housing sector.

On Christmas Day 2018 we reported that the chairman of a leading Chinese state bank warned Chinese investors not to buy property now because “there’s no money to be made” due to high prices and alarming vacancy rates (an ominous development we first discussed last month in “The “Nightmare Scenario” For Beijing: 50 Million Chinese Apartments Are Empty“).

Offering some surprisingly blunt advice which would appear counterproductive to his business model – after all Guoli is incentivized to make as many mortgages as possible – Tian said that “there’s no money to be made if you buy a flat nowadays. If you insist on buying a home, aren’t you trapped at the high price level?” The CCB Chairman was speaking at a forum organized by Peking University’s Guanghua school of management.

As the SCMP reported, the warning by Tian, who is an alternate member of the Communist Party Central Committee, came at a time when the country is in heated debate about the role of the property market – whether it will lead to an bust or whether it can help shore up the economy.

Now, in the latest warning about China’s housing sector, the Communist Party’s People’s Daily warned on Wednesday that China’s regional economies need to reduce their reliance on the property market for growth and instead focus on sustainable longer-term development.

The story is familiar: in recent year, hundreds of cities across China have seen upswings in their local property markets under a long-term plan by Beijing to further urbanize the country. The process of building new homes and revamping old ones has only accelerated in the last few years, backed by local governments keen to boost land sales and meet red-hot property demand. Indeed, the total sales of China’s top 100 real estate developers soared 35% last year, according to private research firm CIRC.

But repeating a now familiar warning that the party is over, Beijing has once again expressed concern that some cities, looking for rapid expansion, have grown their property markets too quickly and at the expense of new industry development, adding potential froth to real estate prices.

“All areas should focus on their own urbanization processes, develop their own pillar industries according to population mobility and resources, and form new points of growth to avoid the old road of relying on real estate to drive the economy,” the commentary quoted a professor at the Capital University of Economics and Business as saying. The warning is almost verbatim a copy of what China Construction Bank chairman Tian Guoli said one week ago when he warned that “there’s no money to be made if you buy a flat nowadays.”

The commentary, which surprisingly appeared in the international edition of the People’s Daily, said a stable and healthy property market is crucial to the development of China’s changing economy, and cited an analyst who said that a thriving property market driven by reasonable prices boosts demand for both raw materials and downstream items such as appliances and home decoration. The flip side, obviously, is a runaway housing bubble and as events in 2006/2007 in the US demonstrated, has a very unpleasant ending.

Meanwhile, as we reported last month, while average new home prices in China’s 70 major cities rose for a 43rd straight month in November, the rate of increase slowed amid weaker growth in the country’s smaller cities, and soft home sales and land purchases suggest a dim outlook for the sector.

The article also comes as a number of Chinese city authorities seek to ease existing curbs on their property markets, despite broader directives from Beijing to keep prices in check.

And yet, in a bizarre flip-flop, last week the city of Hengyang rescinded an order to lift restrictions on property prices, having just introduced the easing measure a day earlier; this example shows the catch 22 that China finds itself in – with much of Chinese economic growth reliant on continued expansion of the housing sector, any attempts to curb said expansion would lead to a more immediate, if less painful economic hit. By delaying the day of reckoning China is only assuring that when the bubble bursts, it will take down not only China’s, but the global economy down with it.

Following the People’s Daily report, the Hong Kong-listed shares of top Chinese real-estate developers China Vanke, Sunac China, China Evergrande, China Overseas Land & Investment and Country Garden all fell, some by as much as 6-7%, while an index tracking major property firms eased 0.7%.

CRIC predicted that the property sector will enter a period of stable growth this year, with the top 100 companies’ annual sales growth rate slowing to 20-30%.

Meanwhile, amid reports of massive housing vacancies as Chinese builders overextended in recent years to prop up GDP resulting in over 50 million empty apartments, there has also been increasing concern that a downturn in the housing market would hit households, banks and developers hard – and this in turn would be a serious threat to China’s state banks and local governments, whose revenues are tied to the property market. Meanwhile, even the smallest turbulence in the market could unleash a furious firesale as builders seek to dump vacant properties: in China, some 22% of the total housing stock is unoccupied, roughly double that of other developed economies.

The net result is that the debt keeping China’s housing bubble afloat has kept rising, with the value of outstanding real estate loans – including mortgage and development lending – reaching 38 trillion yuan (US$5.5 trillion) by the end of September 2018, or 28% of total lending, according to government data, while just personal home mortgages in China have exploded sevenfold from 3 trillion yuan ($430 billion) in 2008 to 22.9 trillion yuan in 2017, according to PBOC data.

By the end of September, the value of outstanding home mortgages had surged another 18% Y/Y to a record 24.9 trillion yuan, resulting in a trend that as Caixin notes, has turned many people into what are called “mortgage slaves.”

What is most troubling, however, and what may have spurred the official government warning, is that despite relatively stable home prices, the foundations behind the housing market are cracking. As the WSJ recently reported, one year ago, a group of homeowners stormed the sales office of their Shanghai complex, “Central Washington”, whose developer, Shanghai Zhaoping Real Estate Development, was advertising new apartments at a fraction of the prices of the ones sold earlier in the year. One apartment owner said the new prices suggested the value of the apartment she bought from the developer in March had dropped by about 17.5%.

“There are people who bought multiple homes who are now trying to sell one to pay off the mortgage on another,” said Ran Yunjie, a property agent. One of his clients bought an apartment last year for about $230,000. To find a buyer now, the client would have to drop the price by 60%, according to Ran.

Of course, if that is the true clearing price to bring China’s massive housing market into balance, a global economic crisis and global deflationary shockwave – launched by China’s housing sector – is now inevitable, it is just a question of when Beijing will finally pull the pin.

4.EUROPEAN AFFAIRS

/EU

Steve Keen is a great economist:  he talks about the lousy growth rate in the Eurozone

(courtesy Steve keen)

Steve Keen Exposes The Delusional ‘Leaders’ Of The Eurozone

Authored by Steve Keen,

I was looking forward to chilling with family and friends in Sydney this New Years Day, but Phil Dobbie ruined it for me with this tweet:

I had forgotten that this was the 20th anniversary of the start of the Euro. But the Eurocrats in Brussels hadn’t. Some hours before the New Year commenced, Juncker and friends put out a press release extoling the virtues of the EuroVirtues such as “unity, sovereignty, and stability … prosperity”.

Well so much for New Year cheer. With this one tweet, the EU put 2019 on track to be even worse than 2018. Using any of those words to describe the Euro—apart perhaps from “unity“, since the same currency is used across most of continental Europe now—is a travesty of fact that even Donald Trump might balk at.

Sovereignty? Tell that to the Greeks, Italians or French, who have had their national economic policies overridden by Brussels. Stability? Economic growth has been far more unstable under the Euro than before it, and Europe today is riven with political instability which can be directly traced to the straitjacket the Euro and the Maastricht Treaty imposed. Prosperity? Let’s bring some facts into Juncker’s fact-free guff.

I’ll start with Phil’s point about Greece. Greece’s GDP has fallen at Great Depression rates since the Eurozone imposed its austerity policies on it, and nominal GDP today is more than 25% below its peak.

Figure 1: Greek GDP and economic growth rate

Now of course that could be blamed on the Greeks themselves, so let’s look compare economic growth in the entire Eurozone to the USA (minus Ireland and Luxembourg, since in the former case their data is massively distorted by data revisions, and the latter has highly volatile data as well, and is so small—under 600,000 people—that it can safely be ignored).

Figure 2: Real economic growth rates

Before the Euro, economic growth averaged 2.5% per year, versus 2.4% in the USA. After the Euro but before the Global Financial Crisis, growth in the Eurozone averaged 2.6%–a 0.1% improvement over pre-Euro levels; but the USA’s growth rate rose to 2.7%, so in comparative terms, the Eurozone fell compared to the USA. So Europe’s tiny improvement over it’s pre-Euro growth rate may be due to factors other than the Euro itself, and its improvement was substantially smaller than the USA’s.

This raw comparison still flatters the Eurozone, since most of the high growth between the start of the Euro and the crisis reflects the bubble-growth of Spain and Greece. Population-weighted figures would look even worse.

But the real comparison is with growth since the crisis. The USA’s average post-crisis growth rate has been anaemic at 1.4%, but this is positively dynamic in comparison to the entire Eurozone’s average post-crisis growth rate of 0.2%. Europe has basically been stagnant for a decade, thanks to the Euro and the austerity policies that are inseparable from it, courtesy of the Maastricht Treaty that Juncker is so proud to have signed.

In reality, the Euro has brought low growth, economic instability, and political discord to Europe. Yet Europe’s unaccountable leaders spin it as an unbridled positive, at a time when ordinary citizens of Europe are donning Yellow Vests and bemoaning their plight.

As Wynne Godley argued so eloquently when the Maastricht Treaty was signed in 1992, the strictures that it and the Euro would impose on Europe would lead to its impoverishment, not its prosperity.

Godley presciently concluded that:

If a country or region has no power to devalue, and if it is not the beneficiary of a system of fiscal equalisation, then there is nothing to stop it suffering a process of cumulative and terminal decline leading, in the end, to emigration as the only alternative to poverty or starvation. (Wynne Godley, 1992)

If this coordinated spin from the Eurozone’s bosses—I refuse to call them “leaders”, because that implies they can be removed—is the best they can do, then 2019 will be every bit as politically unstable as 2018.

end
The ECB takes the unprecedented step of putting insolvent Banca Carige in administration.  It is interesting that they could not find a partner for a measly 400 million euros.  This deepens the Italian banking crisis
(courtesy zerohedge)

ECB Takes “Unprecedented” Step Of Putting Italy’s Banca Carige In Administration

Investors who had hoped that the resolution of Italy’s budget showdown with the EU would mark an end to a volatile period for Italian bonds and stocks were disappointed Wednesday when fears about an Italian banking crisis reemerged after the ECB appointed a slate of temporary administrators to oversee troubled Italian lender Banca Carige after nearly its entire board resigned.

Earlier on Wednesday, Consob, Italy’s market watchdog, said it had suspended trading in shares of Banca Carige for the session following a request by the bank, according to Reuters.

European bank stocks dropped while bonds rallied as fears about softer-than-expected factory orders across the Continent were compounded by the developments in Italy (which proved an exception to the trend of weak PMIs).

Banca

With the bank teetering on the brink of insolvency, the ECB appointed three temporary administrators and a surveillance committee to “take charge” of the lender. The board quit after the bank missed a deadline to shore up its finances, or find a buyer or merger partner, after a fraud scandal, according to the Financial Times.

Fabio Innocenzi, Pietro Modiano and Raffaele Lener have been appointed as temporary administrators while Gianluca Brancadoro, Andrea Guaccero and Alessandro Zanotti have appointed as members of the surveillance committee.

The “unprecedented” move – as Bloomberg called it – follows a failed attempt to raise some 400 million euros last month after the Malacalza family, the billionaire shareholders who control nearly one-third of Carige, abstained from a vote on a turnaround plan, which sought to fill the capital hole left by the fraud scandal.

Carige

The ECB said it had to take action to “stabilize its governance and pursue effective solutions for ensuring sustainable stability and compliance,” the central bank said. Independent administrators have been removed, and the bank’s new overseers will “continuously” report back to the ECB. If the necessary, the administrators must take “action to ensure that the bank restores compliance with capital requirements in a sustainable manner.”

The decision to put the bank into administration is widely seen as a forerunner to a possible sale or merger. According to Bloomberg, the ECB has repeatedly recommended that the bank find a buyer, with Unicredit floated as one possible option, as Carige remains one of the few medium-to-large Italian lenders that hasn’t dealt with its NPL problem.

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

Iraq/Syria/USA

This is a game changer;  Iraqi jets strike terrorists in Syria at the request of Syria’s Assad.  And Iraq is a USA ally?

(courtesy zerohedge)

Iraqi Jets Strike Terrorists In Syria At Assad’s Request As US “Slowing” Troop Pullout

As the United States is reportedly “slowing things down” on Trump’s announced full troop withdrawal, Syria’s President Assad is apparently speeding things up in terms of reasserting sovereign control over all parts of the country, as he’s long promised to “liberate every inch” of natural Syria.

On Sunday Assad took the controversial step of authorizing Iraqi forces to attack terror targets inside Syria at will, according to state-run SANA “without waiting for permission from authorities in Damascus” while the two allies coordinate action against remaining ISIS pockets in the country’s east.

Quickly on the heels of that decision, Iraqi fighters jets bombed ISIS positions across the Syrian border on Monday. According to official reports, “Iraq’s Joint Operations Command said F-16s struck a two-storey house in Souseh, close to the border, that was being used as a meeting place for ISIS leaders.”

Unconfirmed reports say up to two dozen or more ISIS commanders were taken out in the air strikes as a high level meeting had been taking place at one of the locations targeted.

Since Trump’s Syria pullout announcement, Pentagon leaders have expressed concern over who will fill the remaining power vacuum in Syria’s north and east, and have especially feared Iranian entrenchment as a result, as well as the potential of Iraqi Shia pro-Iran militias to fill the gap.

Indeed Monday’s Iraqi air strikes suggest it is precisely Baghdad  — which is ironically an ally of both Iran and the United States, and increasingly of Damascus — which is already stepping up operations while the US is set to move out.

According to the Dubai-based The National, Iraqi leaders hope for even closer cooperation with the Assad government in counter-terror efforts, something sure to trigger alarm bells in Washington and Tel Aviv:

Prime Minister Adel Abdul Mahdi said Iraq is seeking to move beyond its current arrangement with Damascus— under which it launches air strikes against ISIS militants in the neighbouring country after getting approval — but did not offer further details.

“There are groups operating in Syria, and Iraq is the best way to deal with this,” he told reporters in reference to ISIS remnants.

Thus Baghdad is eyeing a larger role in the neighboring war-torn country even beyond having been given carte blanche for cross border air strikes.

This will be met with a desire for active and extreme push back in Washington, resulting in further tensions with Baghdad, as the entirety of America’s Syria policy throughout the war has been driven by fears of the so-called “Shia crescent” or Iranian land bridge which would conceivably connect Tehran with the Mediterranean in a continuous arch of influence via Baghdad, Damascus, and Lebanon, where Iran-backed Hezbollah exercises unrivaled power and influence.

Indeed with the Iraqi Air Force now fully operational over eastern Syria, this feared “land bridge” is already a reality, and will give greater impetus to neocons like Senator Lindsey Graham currently trying to persuade President Trump to walk back or at least greatly slow down the planned US troop withdrawal.

end

6. GLOBAL ISSUES

 

 

 

7  OIL ISSUES

Strange events;        at exactly 10’clock the price of oil rose by 2 dollars per barrel without any reason.  Also it seems that two Chinese oil companies have been caught off guard with respect to losses in derivatives.  The Chinese government is afraid of contagion spreading on price????

 

(courtesy zerohedge)

 

Oil Inexplicably Soars Over $2 In Minutes Amid Chinese Fears Over Rout Contagion

Starting just before 10am ET, oil staged a remarkable surge, rising from sessions lows of $44.50 to $46.50 in the matter of minute, a remarkable levitation which helped trim the overall market’s losses by more than half which pushing Treasury yields modestly higher.

While there was no immediate catalyst for this stunning price spike – some have cited falling Saudi exports which dropped half a million barrels to 7.25mmb/d thanks to lower flows to the U.S. and China, but that makes little sense as i) that was already priced in as part of the latest oil output cuts, and ii) the US is only importing less as a result of its own record production – overnight news which flew under the radar may have something to do with the surge in oil.

Readers will recall that last week, the shares of Asia’s largest petroleum refiner Sinopec plunged following reports that two senior officials at Unipec, the trading subsidiary of Sinopec, had been dismissed by their Communist Party overseers following major losses on soured bets related to oil prices.  While Sinopec confirmed the suspensions saying only they were related to work matters, it only said that Unipec had “made some losses” from crude trading because of a drop in prices, but didn’t link the two.

And yet, overnight Bloomberg reported that in a confirmation that this particular story may have a lot of room to run, China’s state assets regulator was checking on the financial status of derivative trading accounts at some major state companies following the Unipex losses, citing people with knowledge of the situation.

Specifically, as the Bloomberg source revealed, confirming that quietly Beijing is increasingly concerned afraid potential oil price contagion, the State-Owned Assets Supervision and Administration Commission would inspect accounts of companies with derivative trading operations following the Unipec loss, with said inspections said to focus on the profit/loss status of commodity hedging positions.

In other words, Beijing is worried that the Unipec losses may lead to some form of contagion, however good luck to anyone finding out just what has China’s top power echolon freaked out.

However, since Bloomberg adds that some meetings with state-owned oil companies to collect data on trading books have already been held, it is only a mater of time before someone leaks just why China is suddenly worried about oil prices. In the meantime, the best remedy to avoid risk is to simply ramp oil higher, and that’s precisely what we see going on right now.

8. EMERGING MARKETS

Venezuela

 

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

Euro/USA 1.1406 DOWN .0055 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 RED

 

 

 

 

USA/JAPAN YEN 109;18  DOWN 0.496 (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…DEADLY TO OUR YEN SHORTERS

GBP/USA 1.2646     DOWN    0.0072  (Brexit March 29/ 2017/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.3639 UP .0014 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 MONDAY morning in Europe, the Euro FELL by 55 basis point, trading now ABOVE the important 1.08 level FALLING to 1.1406/ Last night Shanghai composite CLOSED  DOWN 28.61 POINTS OR 1.15% 

 

 

//Hang Sang CLOSED DOWN 715.35 POINTS OR 2.77%

 

/AUSTRALIA CLOSED DOWN 1.47%  /EUROPEAN BOURSES RED

 

 

 

 

 

 

The NIKKEI: this WEDNESDAY morning CLOSED DOWN 62.85 POINTS OR .31%

 

 

 

 

 

Trading from Europe and Asia

1/EUROPE OPENED  RED

 

 

 

 

 

 

 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 341.50 POINTS OR 1.34% 

 

 

 

/SHANGHAI CLOSED DOWN 28.61 PTS OR 1.15%

 

 

 

 

Australia BOURSE CLOSED DOWN 1.47%

 

Nikkei (Japan) CLOSED DOWN 62.85 PTS OR .31% 

 

 

 

 

 

INDIA’S SENSEX  IN THE red

Gold very early morning trading: 1284.45

silver:$15.42

Early WEDNESDAY morning USA 10 year bond yield: 2.65% !!! DOWN 3 IN POINTS from MONDAY’S night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%. (POLICY FED ERROR)/DEADLY

The 30 yr bond yield 2.99 DOWN 2  IN BASIS POINTS from MONDAY night. (POLICY FED ERROR)/

USA dollar index early MONDAY morning: 96.47 UP 39 CENT(S) from  MONDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

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And now your closing WEDNESDAY NUMBERS \1: 00 PM

 

Portuguese 10 year bond yield: 1.71% DOWN 1    in basis point(s) yield from MONDAY/

JAPANESE BOND YIELD: +.00%  DOWN 0   BASIS POINTS from MONDAY/JAPAN losing control of its yield curve/

 

 

SPANISH 10 YR BOND YIELD: 1.40% DOWN 2   IN basis point yield from MONDAY

ITALIAN 10 YR BOND YIELD: 2.74 DOWN 0     POINTS in basis point yield from MONDAY/

 

 

the Italian 10 yr bond yield is trading 127 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: RISES UP TO +.17%   IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.52% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A MASSIVE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.1354 DOWN  .0107 or 12 basis points

 

 

USA/Japan: 109.32 DOWN  0.352 OR 35 basis points/

Great Britain/USA 1.2747 UP .0060( POUND UP 60  BASIS POINTS)

Canadian dollar UP 41 basis points to 1.3584

 

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The USA/Yuan,CNY closed DOWN AT 6.8620-  ON SHORE  (YUAN UP)

THE USA/YUAN OFFSHORE:  6.8882(  YUAN DOWN)

TURKISH LIRA:  5.3969

the 10 yr Japanese bond yield closed at +.00%

 

 

 

Your closing 10 yr USA bond yield DOWN 3 IN basis points from MONDAY at 2.67 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.99 DOWN 3 in basis points on the day /

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

Your closing USA dollar index, 96.79 UP 70 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 WEDNESDAY: 1:00 PM 

London: CLOSED UP 6.10 OR 0.09%

German Dax : CLOSED UP 21.23 POINTS OR .20%

Paris Cac CLOSED DOWN 41.3 POINTS OR 0.12%

Spain IBEX CLOSED UP 10.10 POINTS OR 0.12%

Italian MIB: CLOSED UP 6.96 POINTS OR .04%

 

 

 

 

WTI Oil price; 46.83 1:00 pm;

Brent Oil: 55.56 1:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    68.83  THE CROSS LOWER BY .62 ROUBLES/DOLLAR (ROUBLE HIGHER BY 62 BASIS PTS)

USA DOLLAR VS TURKISH LIRA:  5.3969 PER ONE USA DOLLAR.

TODAY THE GERMAN YIELD RISES +.17 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 :46.60

 

BRENT :55.05

USA 10 YR BOND YIELD: 2.65%….deadly

 

 

USA 30 YR BOND YIELD: 2.97%/.deadly

 

 

 

EURO/USA DOLLAR CROSS: 1.1346 ( down 11 BASIS POINTS)

USA/JAPANESE YEN:109.11 DOWN 0.562 (YEN UP 56 BASIS POINTS/..deadly to yen shorters

.

 

USA DOLLAR INDEX: 96.78 UP  29 cent(s)/

The British pound at 5 pm: Great Britain Pound/USA: 1.26110 DOWN 142 POINTS FROM FRIDAY

the Turkish lira close: 5.3967

the Russian rouble:  69.67 down .13 Roubles against the uSA dollar.( down 13 BASIS POINTS)

 

Canadian dollar: 1.3581 UP 45 BASIS pts

USA/CHINESE YUAN (CNY) : 6.8620  (ONSHORE)

USA/CHINESE YUAN(CNH):  6.8765 (OFFSHORE)

German 10 yr bond yield at 5 pm: ,0.17%

 

The Dow closed UP 18.69 POINTS OR 0.08%

 

NASDAQ closed UP 30.60 POINTS OR 0.46%

 


VOLATILITY INDEX:  23.77 CLOSED DOWN 1.65 

 

LIBOR 3 MONTH DURATION: 2.808%  .LIBOR  RATES ARE RISING/

 

FROM 2.797

 

 

 

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

TRADING IN GRAPH FORM FOR THE DAY/WEEKLY SUMMARY/FOLLOWED BY TODAY

 

Stocks Rebound From Early Rout, But Yield Curve Crushed On Global Growth Scare

Trump et al. were quick to reassure markets again that trade talks were going “very well”…

.

 

 

China was not happy overnight (ugly PMI data)…

 

Europe was not having a bonne annee… (ugly PMI data) but then ramped back to unch along with US stocks (France was down)

 

Because nothing says BTFD (to the worst start to a trading year since 2001) like dismal US, EU, and China PMIs… Of course, another huge short squeeze was just what the doctor ordered…

 

However, in the last hour, OCC issued a reassuring statement that the US banking system was “well prepared” – not clarifying ‘prepared’ for what – sending stocks lower into the close…

 

And by the close – thanks to one last minute ramp – all major US equity indices closed green...

 

Tesla stocks tumbled – as once again the equity market catches down to bond’s reality…

 

FANG Stocks were aggressively bid off the early ugly lows…

 

Everyone quickly jumped on the narrative that Oil’s rally prompted stocks to rebound, but Bloomberg’s Vincent Cignarella points out, as we did earlier, that S&P futures began to turn at around 9:45, crude at around 9:25. The Saudi tanker tracking story was out at 10:02.

The Saudis saw a drop in exports, not a cut in production as some are saying. OPEC + production cuts did not start until today and will take some time to show up in data. A drop in exports more likely a result of falling demand, actually growth and crude negative so crude rallying on the Saudi news in my opinion highly unlikely. Some traders saying the spike was a result of a short squeeze, naked put seller driving trading desks to buy up futures contracts for a hedge. Seems more likely when you look at the timing of things. In addition, Russia total crude output near record highs for 2018.

As, as Cignarella concludes, all in all I do not see the equity rally holding up-based on a bad theory.

We agree wholeheartedly as the bond market was clearly not buying the short-squeeze either...

 

Treasury yields were mixed (short-end higher, long-end lower)…

 

10Y Yields hit an 11-month low and 30Y Yields broke back below 3.00%…

 

With the yield curve tumbling…

 

And inverted through around the 8Y maturity point…

 

High yield bond prices fell again but the machines levitated them back to unchanged very briefly before it slid…

 

Initial overnight weakness in the Dollar was violently bid as stocks tumbled, then dropped into the close as OCC issued their statement…

 

Cryptos extended gains for 2019 with Ethereum soaring 15%…

 

Copper was clobbered as China data signaled economic contraction, crude went wild…

 

The big headline of the day was utterly farcical ramp in WTI – which had the smell of some algo gone wild on the back of a fund liquidation...

 

Gold in Yuan rallied on the day…

 

Finally, we note that US economic data is at its weakest since Sept 2017…

So ‘bad’ news is good again?

 

END

market trading

EARLY THIS MORNING

New Year’s Hangover Hammers Markets – Stocks Slammed, Bonds Bid

Update: Things are escalating quickly… Dow futures are down 450 points (down 600 from the highs)…

The initial leg down was triggered by China’s Caixin PMI tumbling into contraction (lowest since May 2017) and that weakness accelerated as Europe opened with a slew of weak PMIs also (EZ worst since Feb 2016)…

Rapidly erasing last week’s ‘odd’ pension-flow driven panic-bids…

Nasdaq futures are worst – down 2.6% from New Year’s Eve close.

While there is a long way to go, this would be the worst start to a new year since 2001 for the S&P 500…

This follows weakness in China overnight… (weakest start to a year since 2006)

And European indices are tumbling, led by France’s CAC…

With the stock dive prompting a sudden safe haven bid into the USD…

US Treasury yields have tumbled… with 30Y back below 3.00%

And bund yields are getting hammered – back to a 17bps handle for the first time since 2017…

 

*  *  *

US futures markets opened overnight with a flourish, extending Monday’s New Year’s Eve panic-bid close. But as with all moments of excess, there is a price to be paid and the hangover has accelerated as markets head into the European open with Dow futures down 400 points from the highs…

 

All the major indices have reversed early gains, back to last week’s lows…

 

And as a reminder, stoks have quiet a catch down to go if bonds are right over the Xmas holiday…

THEN LATE IN THE MORNING:

Nasdaq Plunge ‘Protected’ Into Green By Another Massive Short Squeeze

As US stocks headed for the worst start to a year since 2001, a mysterious bid appeared in  WTI Crude as well as stocks, squeezing shorts…

and ramping Nasdaq futures all the way back into the green…

HY Bond prices levitated back to unchanged…

And of course there’s buybacks…

 

What happens next?

END
THIS AFTERNOON:

Treasury Yields Tumble To 11-Mo Lows Amid Curve Inversion Chaos

US Treasury yields are tumbling (along with German bund yields) as 2019 opens up with a broad risk-off sentiment and global growth scare.

30Y Yields are back below 3.00% and 10Y hit 2.60 handle – its lowest since January 2018…

All of which – confused by shutdown fears, liquidity concerns, repo rate carnage, and The Fed’s QT – has left the yield curve of the supposedly most liquid bond market in the world in a total mess of inversions… from 1Y through 8Y is now inverted…

And as Bloomberg reports, this inversion reinforces the warnings from a market indicator watched by the Fed as one of the most accurate gauges of economic health is pricing in lower rates for the first time in more than a decade.

This little-known near-term forward spread, which reflects the difference between the forward rate implied by Treasury bills six quarters from now and the current three-month yield, fell to -0.0653 basis point on Wednesday.

It was the first time since March 2008 the gauge — seen as a proxy for traders’ outlook on Federal Reserve policy — fell below zero.

Crossing the threshold indicates the market sees easier policy and recession in “the next several quarters,” economists at the U.S. central bank wrote in a research paper dated July 2018.

“When negative, it indicates market participants expect monetary policy to ease, presumably because they expect monetary policymakers to respond to the threat or onset of a recession,” Eric C. Engstrom and Steven A. Sharpe wrote.

“When market participants expected — and priced in — a monetary policy easing over the next 18 months, their fears were validated more often than not.”

If equities are right – the massive underperformance of cyclicals relative to defensives – then Treasury yields have a long way to fall...

But in the short-term, we wonder how much of last week’s buying panic in stocks will hold?

END

market data/

USA MFG  PMI plunges to a 15 month low

(courtesy zerohedge)

US Manufacturing PMI Plunges To 15-Month Lows

Following weakness in China and Eurozone PMIs, US Manufacturing’s final print for December also disappointed, dropping to 53.8 (below its flash print) to the slowest since Sept 2017.

Business confidence tumbled to its lowest since October 2016 and New orders hit a 15-month low.

The rate of job creation softened to an 18-month low. Although firms noted an increase in workforce numbers following greater production requirements, others suggested that low rates of employee retention had weighed on growth.

Chris Williamson, Chief Business Economist at IHS Markit said:

“Manufacturers reported a weakened pace of expansion at the end of 2018, and grew less upbeat about prospects for 2019. Output and order books grew at the slowest rates for over a year and optimism about the outlook slumped to its gloomiest for over two years. The month rounds of a fourth quarter in which manufacturing production is indicated to have risen at only a modest annualised rate of about 1%.

“Some of the weakness is due to capacity constraints, with producers again reporting widespread difficulties in finding suitable staff and sourcing sufficient quantities of inputs. However, the survey also revealed signs of slower demand growth from customers, as well as rising concerns over the impact of tariffs. Just over two thirds of manufacturers reporting higher costs attributed the rise in prices to tariffs.

“Growth was led by strengthening demand for consumer goods, and robust growth was also reported for investment goods such as plant and machinery. But producers of intermediate goods – who supply inputs to other manufactures – reported the weakest rise in new orders for over two years, hinting at increased destocking by their customers.

“A shift to inventory reduction was highlighted by purchasing activity in the manufacturing sector rising at the weakest rate for one and a half years in December, providing further evidence that companies have become increasingly cautious about spending amid rising uncertainty about the outlook.”

2018 marked the first time that Citigroup’s global economic surprise index finished a year below zero since 2008, and China’s disappointing PMI could help drag it even lower to start 2019.

The consistency with which global data is trailing estimates makes consensus forecasts for U.S. GDP for 2019 that have barely budged from their high of 2.6% highly suspect.

Appetite for risk in markets may be scarce until the data stops missing so consistently.

end

USA ECONOMIC STORIES OF INTEREST

A good look at the 1.5 trillion dollar student loan sector of the USA government.

(courtesy Simon Black)

SWAMP STORIES

This is quite a story. Mueller got the shock of his life when Concord, a Russian owned American enterprise showed up to defends itself against the special prosecutor.  The lawyer for Concord ridicules Mueller as he is not allowed to see any evidence of their crime..

what nonsense…

(courtesy zerohedge)

 

Mueller’s Legal Strategy Ridiculed By Courtroom Nemesis; A Veteran Of The “Real Justice Department” 

Robert Mueller is getting dragged through the mud by a veteran Justice Department attorney representing a Russian company indicted by the special counsel’s office on a “make-believe crime,” according to the Washington Times.

The attorney, Eric A. Dubelier, spent eight years prosecuting cases as a Justice Department assistant US attorney based out of D.C. before going into private practice for the law firm Reed Smith. Dubelier refers to his former employer as “the real Justice Department,” with the implication being that Mueller and his team of “13 angry Democrats” as President Trump calls them – are not

In his representation of Russian restaurant company Concord Management and Consulting, which stands accused of supporting a Russian “troll farm” known as the Internet Research Agency, Dubelier has accused Mueller of violating the confidentiality of Concord’s counter evidence, while refusing to provide documents Concord requires to defend itself.

Concord is accused of an elaborate conspiracy with another Russian operation, the Internet Research Agency. The indictment accuses Concord of providing the troll farm $1.2 million monthly to defraud the U.S. The two firms set up fake personas and false Twitter accounts, Facebook ads and other social media posts mostly to disparage Hillary Clinton and support Donald Trump. –Washington Times

The prosecutor wants to “whisper secrets to the judge,” said Dubelier, who added that Mueller is only considering the “short-term political value of a conviction,” and not concerned with the case holding up in appeals court years down the road.

The veteran DOJ attorney didn’t stop there – resurrecting a botched case headed up by Mueller’s top prosecutor, Andrew Weissmann as an example of the special counsel team’s incompetence.  

Mr. Weissmann headed the Justice Department’s Enron task force nearly two decades ago. He won a conviction against the accounting firm Arthur Andersen for shredding the defunct energy firm’s financial documents.

Years later, the U.S. Supreme Court unanimously reversed the conviction. The 2005 decision effectively said that Andersen, by then out of business and its 28,000 employees gone, hadn’t committed a crime. –Washington Times

Mr. Dubelier is exactly right on Mr. Mueller’s motives and tactics,” says Sidney Powell, author of the book “License to Lie,” which exposes decades of Justice Department scandals. His lieutenant Weissmann is the poster boy for prosecutorial misconduct and has no regard for the facts or the law. He will make up whatever he wants to win, and the entire like-minded team views as an accomplishment everyone whose life they destroy in pursuit of their objective.”

When Mueller indicted Concord as one of three Russian companies and 13 individuals, nobody expected anybody to actually show up to court 5,000 miles away to defend themselves. Concord did – which took Mueller by surprise. The special counsel’s first move upon Concord’s entrance to the case was to request a delay, suggesting that because Concord was not properly served with the complaint, the court should deny their right to an initial appearance – as well as the ability to view Mueller’s evidence against them. US District Judge Dabney L. Friedrich didn’t buy it and the case was ordered to continue.

Dubelier also defended the use of fake personas and false Twitter accounts during the 2016 US election, arguing in an Oct. 15 hearing that “When it comes to political speech, one is free to pretend to be whomever he or she wants to be and to say whatever he or she wants to say.”

That’s why in this case this special counsel made up a crime to fit the facts that they have,” Dubelier added. “And that’s the fundamental danger with the entire special counsel concept: that they operate outside the parameters of the Department of Justice in a way that is absolutely inconsistent with the consistent behavior of the Department of Justice in these cases for the past 30 years.”

Judge Friedrich refused to dismiss the case on that premise, but Dubelier wasn’t done – turning next to the ongoing battle over Concord’s ability to view “sensitive” evidence that Mueller won’t allow into the Russian company’s hands due the the owner’s ties to Russian President Vladimir Putin.

“This equates to the burden of preparing for trial without any ability to discuss the evidence with the client who is to be put on trial,” said a frustrated Dubelier. “This has never happened before in reported case law because the notion is too ludicrous to contemplate.”

“What Mueller has turned over is often irrelevant to mounting a defense, such as promotion emails for airlines and personal naked selfie photographs,” said Dubelier in a December filing.

The special counsel is keeping most relevant information between himself and Judge Friedrich, excluding Mr. Dubelier.

Why no probe of dossier writer?

Mr. Mueller won the argument over “sensitive” material. He now wants to hold closed sessions with the judge over classified information — again, without Mr. Dubelier.

Mr. Dubelier responded in a Dec. 27 filing: “The Special Counsel has made up a crime that has never been prosecuted before in the history of the United States, and now seeks to make up secret procedures for communicating ex parte [meaning no defense counsel present] to the court which have never been employed in any reported criminal case not involving classified discovery.”

The defense attorney admitted his motion is “likely fruitless” because Judge Friedrich previously has ruled against Concord. –Washington Times

Skulduggery?

Last summer after Judge Friedrich approved the use of a “firewall counsel” to review evidence for national security concerns, an exasperated Dubelier said he submitted evidence to said firewall lawyer only to see it fall into the hands of Mueller’s team, which then used it to investigate Concord further.

“Surely a remarkable coincidence,” said Dubelier.

Another question raised by the defense is the question of why isn’t former UK spy Christopher Steele – who the Democrats paid to assemble an anti-Trump opposition research dossier, being investigated by the DOJ for election interference just like the Russians?

Steele failed to register under the Justice Department’s Foreign Agent Registration Act – a law which Mueller has brought charges against several defendants, including Concord. Friedrich also rejected Dubelier’s argument of “selective prosecution.”

Mueller’s counter-argument revolves around the notion that Concord’s owner, Yevgeny Prigozhin, is a criminal fugitive who interfered in the US election and is therefore not entitled to view sensitive national security information which he would undoubtedly pass along to the Kremlin.

“Disclosure of such information could cause exceptionally grave damage to the national security,” said Mueller.

In June, Friedrich ruled that Prigozhin is prohibited from viewing non-classified sensitive information which would reveal the US government’s sources and methods of collection evidence, after Mueller’s team argued: “Discovery in this case contains sensitive information about investigative techniques and cooperating witnesses that goes well beyond the information that will be disclosed at trial … Information within this case’s discovery identifies sources, methods, and techniques used to identify the foreign actors behind these interference operations … the government has particularized concerns about discovery in this case being disclosed to Russian intelligence services.”

Mueller claims that as long as Prigozhin – a sanctioned and indicted individual, remains in Russia – he is not entitled to view the sensitive evidence.

-END-

:

SWAMP STORIES/MAJOR STORIES//THE KING REPORT
and special thanks to Chris Powell of GATA for sending this down for us:

‘Real Justice Department’ veteran emerges as Mueller’s top courtroom adversary

He is Eric A. Dubelier, a litigator for the Reed Smith law firm who knows international law and the D.C. playing field. He served eight years prosecuting cases as a Justice Department assistant U.S. attorney in Washington… Mr. Dubelier has depicted Mr. Mueller as a rogue prosecutor willfully ignoring Justice Department guidelines.

    He has accused Mr. Mueller of creating a “make-believe crime” against his Russian client, Concord Management and Consulting, which is accused of funding a troll farm that interfered in the 2016 election…   https://www.washingtontimes.com/news/2019/jan/1/eric-dubelier-emerges-robert-muellers-top-courtroo/

 

@TomFitton: BIG ARMS SCANDAL: ICYMI: Smoking gun docs uncovered by @JudicialWatch show Obama/Clinton were aware arms going to Syria through Benghazi and were warned about rise of ISIS, and they were supporting terrorists in Syria. Is this why Flynn was targeted? https://www.judicialwatch.org/press-room/press-releases/judicial-watch-defense-state-department-documents-reveal-obama-administration-knew-that-al-qaeda-terrorists-had-planned-benghazi-attack-10-days-in-advance/

 

I WILL SEE YOU ON THURSDAY
H
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One comment

  1. In terms of the inventories, we need to know the shares outstanding to see what’s really going on. Going to the GLDs historical spreadsheet, they don’t list it. Looking at today’s closing value, things look kosher. Jan2nd closing values show my calculation of $121.27481 value and $32.792B as the same 270.4M shares outstanding they list.

    Like

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