MARCH 11/TYPICAL RAID DAY FOR GOLD/SILVER AS THE BANKERS NEVER ALLOW A FOLLOW THROUGH: GOLD DOWN $8.00 TO $1291.00/SILVER DOWN 7 CENTS TO $15.27// CONTINUAL QUEUE JUMPING AT BOTH GOLD AND SILVER COMEX// ANOTHER BOIEING 737 MAX 8 FALLS FROM THE SKY AS AN ETHIOPIAN AIRLINE CRASHES AND ALL ABOARD PERISH: CHINA GROUNDS ALL BOEING’S 737 MAX 8’S//BROOKINGS HAVE STATED THAT CHINA HAS OVERSTATED THEIR GROWTH BY 12% IN THE PAST 6 YEARS//SYRIA DEMANDS THE GOLAN HEIGHTS BACK AND IT WILL ATTACK ISRAEL IF SHE DOESN’T COMPLY//ATLANTA FED CUTS FIRST QUARTER GDP GROWTH TO A PALTRY .2%//MORE SWAMP STORIES FOR YOU TONIGHT///

 

 

 

GOLD: $1291.00 DOWN $8.00 (COMEX TO COMEX CLOSING)

Silver:   $15.27 DOWN 7 CENTS (COMEX TO COMEX CLOSING)

Closing access prices:

Gold :  $1293.50

 

silver: $15.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For comex gold and silver:

MARCH

 

 

 

NUMBER OF NOTICES FILED TODAY FOR  MAR CONTRACT: 8 NOTICE(S) FOR 800 OZ (0.0249 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  327 NOTICES FOR 32700 OZ  (1.017 TONNES)

 

 

SILVER

 

FOR MARCH

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

10 NOTICE(S) FILED TODAY FOR 50,000  OZ/

 

total number of notices filed so far this month: 4858 for 24,290,000

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE $3930:DOWN $35

 

Bitcoin: FINAL EVENING TRADE: $3863  DOWN 53

 

end

 

XXXX

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

today 4/8

EXCHANGE: COMEX
CONTRACT: MARCH 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,297.000000000 USD
INTENT DATE: 03/08/2019 DELIVERY DATE: 03/12/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
657 C MORGAN STANLEY 1
661 C JP MORGAN 4
737 C ADVANTAGE 5 3
905 C ADM 3
____________________________________________________________________________________________

TOTAL: 8 8
MONTH TO DATE: 327

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

In silver, the total OPEN INTEREST FELL BY A SMALL SIZED 647 CONTRACTS FROM 191,993 DOWN TO 191,346 DESPITE FRIDAY’S HUGE 30 CENT GAIN IN SILVER PRICING AT THE COMEX.(IT SURE LOOKS LIKE THE RATS ARE TRYING TO FLEE THE SHIP AS WE NO DOUBT WITNESS THE CROOKS ATTEMPTING TO SHORT COVER THEIR MASSIVE POSITIONS!!!) TODAY WE ARRIVED FURTHER FROM  AUGUST’S 2018  RECORD SETTING OPEN INTEREST OF 244,196 CONTRACTS. WE ALWAYS WITNESS A CONTRACTION IN TOTAL OI AS WE APPROACH FIRST DAY NOTICE AND IT SEEMS THE CULPRIT IS THE FORCED LIQUIDATION OF SPREADERS.

WE HAVE ALSO WITNESSED A LARGE AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY 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 SMALL SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:

0 EFP’S FOR MARCH,  0 FOR APRIL,  857 FOR MAY, 0 FOR DECEMBER AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 857 CONTRACTS. WITH THE TRANSFER OF 857 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 857 EFP CONTRACTS TRANSLATES INTO 4.29 MILLION OZ  ACCOMPANYING:

1.THE 30 CENT GAIN IN SILVER PRICE AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES WHICH STOOD FOR DELIVERY IN THE LAST NINE 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  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.

AND NOW: 26.290 MILLION OZ STANDING IN MARCH.

 

 

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

17,857 CONTRACTS (FOR 7 TRADING DAYS TOTAL 17,857 CONTRACTS) OR 89.29 MILLION OZ: (AVERAGE PER DAY: 2551 CONTRACTS OR 12.755 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAR:  89.29 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 12.76% 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:          454.18    MILLION OZ.

JANUARY 2019 EFP TOTALS:                                                      217.455. MILLION OZ

FEB 2019 TOTALS:                                                                       147.4       MILLION OZ/

 

 

RESULT: WE HAD A SMALL SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 647 DESPITE THE 30 CENT GAIN IN SILVER PRICING AT THE COMEX /YESTERDAY..THE CME NOTIFIED US THAT WE HAD   SMALL SIZED EFP ISSUANCE OF 857 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 STRANGELY LOST A SMALL SIZED: 210 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:

i.e 857 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 647 OI COMEX CONTRACTSAND ALL OF THIS  DEMAND HAPPENED WITH A 30 CENT GAIN IN PRICE OF SILVER  AND A CLOSING PRICE OF $15.34 WITH RESPECT TO YESTERDAY’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. 0.975 BILLION OZ TO BE EXACT or 139% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT FEBRUARY MONTH/ THEY FILED AT THE COMEX: 10 NOTICE(S) FOR 50,000 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   JANUARY AT  5.825 MILLION OZ.AND FEB 2019:  2.955 MILLION OZ/AND NOW MARCH: 26.290 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 ANOTHER HUMONGOUS 13,828 CONTRACTS UP TO 513,795 WITH THE RISE IN THE COMEX GOLD PRICE/(A GAIN IN PRICE OF $13.40//FRIDAY’S TRADING). HOWEVER…….

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A  STRONG SIZED 8025 CONTRACTS:

 

MARCH HAD AN ISSUANCE OF 0 CONTACTS  APRIL 8025 CONTRACTS,JUNE: 0 CONTRACTS DECEMBER: 0 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 513,795. 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  A GIGANTIC SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 21,853 CONTRACTS: 13,828 OI CONTRACTS INCREASED AT THE COMEX AND 8025 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 21,853 CONTRACTS OR 2,185,300= 67.97 TONNES.

FRIDAY WE HAD A GAIN IN THE PRICE OF GOLD TO THE TUNE OF $13.40.AND WITH THAT, WE HAD A HUGE GAIN IN TONNAGE OF 67.97 TONNES.

 

 

 

 

FRIDAY, WE HAD 5000 EFP’S ISSUED.

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MARCH : 57,589 CONTRACTS OR 5,758,900 OZ OR 179 .12 TONNES (7 TRADING DAYS AND THUS AVERAGING: 8227 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 7 TRADING DAYS IN  TONNES: 179.12 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2018, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 2555 TONNES

THUS EFP TRANSFERS REPRESENTS 179.12/2550 x 100% TONNES = 7.02% OF GLOBAL ANNUAL PRODUCTION SO FAR IN DECEMBER ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     1054.5 TONNES

JANUARY 2019 TOTAL EFP ISSUANCE;   531.20 TONNES

FEB 2019 TOTAL EFP ISSUANCE:             344.36 TONNES

 

 

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 HUMONGOUS SIZED SIZED INCREASE IN OI AT THE COMEX OF 13,828 WITH THE GAIN IN PRICING ($13.40) THAT GOLD UNDERTOOK FRIDAY) //.WE ALSO HAD A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 8025 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 8025 EFP CONTRACTS ISSUED, WE  HAD A GIGANTIC GAIN OF 21,853 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

8025 CONTRACTS MOVE TO LONDON AND 13,828 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE STRONG GAIN IN TOTAL OI EQUATES TO 67.97 TONNES). ..AND ALL OF THIS HUGE  DEMAND OCCURRED WITH A GAIN OF $13.40 IN FRIDAY’S TRADING AT THE COMEX

 

 

 

we had:  8 notice(s) filed upon for 800 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD DOWN $8.00 TODAY 

 

NO ADDITIONS OR SUBTRACTIONS TODAY

 

 

INVENTORY RESTS AT 766.59 TONNES

 

 

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

 

SLV/

WITH SILVER DOWN 7 CENTS  IN PRICE  TODAY:

A BIG CHANGE IN SILVER INVENTORY AT THE SLV.: A DEPOSIT OF 516,000 OZ

 

 

/INVENTORY RESTS AT 309.676 MILLION OZ.

 

 

end

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

1. Today, we had the open interest in SILVER FELL BY A SMALL SIZED 647 CONTRACTS from 191,993 DOWN TO 191,346 AND FURTHER FROM THE NEW COMEX RECORD SET LAST IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  1 1/3 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.  AS YOU CAN SEE, WE HAVE RECORD HIGH OPEN INTERESTS IN SILVER  ACCOMPANIED BY A CONTINUAL LOWER PRICE WHEN THAT RECORD WAS SET…..

 

.

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

 

0 CONTRACTS FOR MARCH. 0 CONTRACTS FOR APRIL., 857 FOR MAY AND  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 857 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  OI LOSS AT THE COMEX OF 647 CONTRACTS TO THE 857 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE  OBTAIN  A SMALL GAIN  OF 210  OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 1.05 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 , 5.845 MILLION OZ STANDING IN JANUARY. 2.955 MILLION OZ STANDING IN FEBRUARY AND NOW 26.290 MILLION OZ FOR MARCH.

 

 

RESULT: A SMALL SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE 30 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// FRIDAY.BUT WE ALSO HAD A SMALL SIZED 857 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.

BOTH THE SILVER COMEX AND THE GOLD COMEX ARE IN STRESS AS THE BANKERS SCOUR THE BOWELS OF THE EXCHANGE FOR METAL

 

 

(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)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED UP 57.13 POINTS OR 1.92% //Hang Sang CLOSED UP 274.88 POINTS OR 0.97%  /The Nikkei closed UP 99.53 POINTS OR 0.47%/ Australia’s all ordinaires CLOSED DOWN .38%

/Chinese yuan (ONSHORE) closed DOWN  at 6.7247 AS TRUCE DECLARED FOR 3 MONTHS /Oil DOWN to 56.40 dollars per barrel for WTI and 66/24 for Brent. Stocks in Europe OPENED GREEN 

ONSHORE YUAN CLOSED DOWN // LAST AT 6.7247 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.7328: / TRADE TALKS NOW ON/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

 

 

 

 

3A/NORTH KOREA/SOUTH KOREA

 

 

 

i)North Korea/

 

 

 

b) REPORT ON JAPAN

 

 

 

3 C/  CHINA

i)China/Friday night

Auto sales crash in February..we are witnessing an accelerating industry collapse

( zerohedge)

ii)Despite the huge 4.64 trillion yuan injection into the economy  (685 billion USA), growth was a paltry 703 billion yuan.  In other words they needed 6.6 yuan injection to get one yuan unit of growth.  Not good!!
(zerohedge)
iii)Brookings calculates that China has been overstating the size of its economy by 2% a year.  These figures are from 2008 through to 2016.  Thus the true state of its economy is overstated by 12%. Thus China is in far worse shape than thought with respect to true debt to GDP.. Kyle Bass is correct
( zerohedge)

iv)With the downing of Boeing 737 max 8  (Ethiopian Airlines) over the weekend, China has now grounded all Boeing 737’s Max 8.  We are waiting for all Boeings 737 Max 8 to be grounded( zerohedge)

4/EUROPEAN AFFAIRS

i)UK

this is what happens when you have a single payer, socialized health system: disaster

Take a look at the UK health system

( Mac Slavo)

ii)Sunday night:  the pound falls on report that only two cabinet ministers has May’s support ahead of this week’s critical votes. We outline a summary of events which are most likely to occur
(  zerohedge)

iii)Germany/USA/Huawei

The USA warns that if Germany does not drop Huawei then they would be at risk of losing intelligence sharing.  With the huge influx of migrants and thus increased terror risks, this is something that Germany could not afford.

( zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

USA introduces a bill to formally recognize the annexation of the Golan Heights.  Syria wants the Golan Heights back but that will never ever happen.  Syria threatens Israel if she does not give the Golan Heights back to Syria, then Syria will attack Israel.
( zerohedge)
ii)Russia
Russian warship is sailing down the English Channel equipped with a vomiting weapon which is hallucinogenic and makes aiming of weapons impossible
(courtesy zerohedge)

iii)Turkey

Turkey officially enters it’s first recession in over 10 years having 2 consecutive quarters of negative growth. Turkey has double digit inflation and owes a huge amount of dollar denominate debt.  No doubt Turkey will enter crisis mode

( zerohedge)

6. GLOBAL ISSUES

 

i)A great commentary by Wolf Richter has he describes the 10 worst countries for the highest household debt/GDP. The worst nation is Switzerland but the fastest rise in household debt/GDP is China

(courtesy WolfRichter)

ii)Sunday night:
Prime Minister of Pakistan Khan states that his country is ready for war with India. Financially, Pakistan is broke but both powers have nuclear weapons
( zerohedge)
iii)Finland
Socialism at its finest:  Finland’s government falls after attempts to reduce healthcare spending fails.
(courtesy Reuters/)
and special thanks to Robert H for sending this to us:

iv)Economists have now cut global growth to just 2.1% down from 4.% in the middle of last year.

(courtesy zerohedge)

 

7. OIL ISSUES

Norway’s sovereign wealth fund plans to sell shares of its pure play exploration companies.  It will hold onto the biggest integrated producers. It is worried what will happen once oil is depleted form its reserves.

( zerohedge)

 

 

 

 

8 EMERGING MARKET ISSUES

 

 

i)VENEZUELA/

a)Blackout reaches 4 days and there are reports of dozens of deaths..when they will get this lunatic Maduro out of office.

(courtesy zero hedge)

 

b)And now day 5 of the blackout as supermarkets are raided

 

 

 

9. PHYSICAL MARKETS

i)China will not devalue its currency in order to spur exports, reports its chief central banker Yi.

( Yahoo/GATA)

ii)Sound money returns to West Virginia as they end sales taxation on gold and silver

(MoneyMetalsNews/GATA)

 

iii)Dave Kranzler (and so do I) believe that Barrick’s bid for Newmont signals “peak gold” i.e. most of the major deposits have already been found and thus the mergers by the biggies to keep alive

( Dave Kranzler/IRD)

 

iv)Powell thinks that Trump cannot fire him.  I think he can but only for cause. Powell goes on 60 Minutes as he tries to calm markets.

( CNBC/GATA)

 

v)China has increased its official reserves by around 10 tonnes each month.  No doubt that all of their gold has been bought years ago and they are now only officially recording it but at an extremely slow face. However are they signalling the fact that they want a gold backed yuan?

(courtesy zerohedge)

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

 

 

MARKET TRADING

/

 

 

ii)Market data

a)Retail sales rebounded a bit but only after a huge downward revision. Thus if we take the last two months data we witness the biggest 2 month drop in retail sales in a decade.

( zerohedge)

b)THIS IS A HUGE BLOW TO TRUMP:  Atlanta Fed now sees first quarter GDP tumbling to just .2%
( zerohedge)

iii)USA ECONOMIC/GENERAL STORIES

a)Basket case Illinois is still short after a proposed income tax hike

( Digounguy/IllinoisPolicy.Org)

b)As you know China has stopped bringing into its country garbage of the USA.  Now we witness a pollution panic striking major uSA cities as they face consequences of that decision.  The USA is trying to burn the plastic but this is releasing huge amount of toxins into the atmosphere.

( zerohedge)

iv)SWAMP STORIES

a)Two major points of interest in this story:

  1. Graham is going after the FISA abuse as the FBI used undocumented evidence in the probe of Carter Page
  2. Graham is going after the genesis: how this whole episode started i.e. the use of Stefan Halper infiltrating the Trump campaign. Halper was a paid informant of the FBI.

(zerohedge)

b)Bruce Ohr’s testimony has finally been released and it totally contradicts both Rosenstein and Simpson..someone  is lying..either Ohr is telling the truth or Rosenstein/Simpson are lying..my money is on the latter two

( Sara Carter)

c)The Ohr documents reveal that the Dept of Justice tried to protect Steele even though he was fired from them for divulging is dossier to the media

( Kit Klarenberg/SputnikNews/zerohedge)

d)Fox issues a rare rebuke of Judge Jeanine after her attack against Omar’s Hijab. However I believe she was correct in everything she stated

( zerohedge)

 

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

 

end

 

 

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN ROSE BY HUMONGOUS  SIZED 13,828 CONTRACTS UP TO A LEVEL OF 513,795 WITH THE GAIN IN THE PRICE OF GOLD ($13.40) IN FRIDAY’S // COMEX TRADING).

WE ARE NOW IN THE  NON ACTIVE DELIVERY MONTH OF MARCH..  THE CME REPORTS THAT THE BANKERS ISSUED A STRONG SIZED COMEX TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 8025 EFP CONTRACTS WERE ISSUED:

FOR MARCH:  0. FOR APRIL 8025, FOR JUNE: 0 CONTRACTS AND FINALLY DECEMBER: 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  8025 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: 21,853 TOTAL CONTRACTS IN THAT 8025 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A HUMONGOUS SIZED 13,828 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES ONLY::21,853 contracts OR 2,185,300 OZ OR 67.97 TONNES.

 

We are now in the NON active contract month of MARCH and here the open interest stands at 46 contracts  for a loss of 7 contracts.We had 9 notices served upon yesterday so we AGAIN GAINED  2 contracts or AN ADDITIONAL 200 oz will stand at the comex as these guys refused to morph into London based forwards as well as negating a fiat bonus for their effort.

 

 

 

The next non active delivery month after  March is the  active delivery month is April and here the OI rose by 476 contracts up to 291,136 contracts. The non active month of May picked up 30 contracts for a total of 222 open interest.  After May, the next active delivery month is June and here the OI stands at 143,444 having gained 11,879 contracts.

 

 

 

 

TODAY’S NOTICES FILED:

WE HAD 8 NOTICES FILED TODAY AT THE COMEX FOR 800 OZ. (0.0249 tonnes)

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total COMEX silver OI FELL BY A SMALL SIZED 647 CONTRACTS FROM 191,993 DOWN TO 191,346(AND FURTHER FROM THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S SMALL OI COMEX LOSS  OCCURRED WITH A 30 CENT GAIN IN PRICING.//FRIDAY 

 

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF MARCH AND THE  OPEN INTEREST IN THIS FRONT MONTH RESTS AT 410 HAVING LOST 125 CONTRACTS.

WE HAD 126 NOTICES FILED YESTERDAY SO WE GAINED 1 CONTRACT OR 5,000 ADDITIONAL OZ WILL STAND AT THE SILVER COMEX AS THESE GUYS REFUSED TO MORPH INTO LONDON BASED FORWARDS AS WELL AS NEGATING A FIAT BONUS. WE HAVE BEEN WITNESSING QUEUE JUMPING IN SILVER FOR OVER 3 YEARS IN THAT THE TOTAL OZ STANDING INCREASES FROM FIRST DAY NOTICE STANDING.

TODAY THE  SILVER COMEX IS IN STRESS.!! WE HAVE HAD FOR THE 7TH CONSECUTIVE DAY QUEUE JUMPING AND THUS ANOTHER INCREASE IN THE AMOUNT OF SILVER STANDING AT THE COMEX.

 

 

 

 

AFTER MARCH, WE HAVE THE NON ACTIVE DELIVERY MONTH OF APRIL.  HERE: APRIL FALLS TO 804 CONTRACTS FOR A LOSS OF 10 CONTRACTS.  AFTER APRIL, THE NEXT BIG ACTIVE DELIVERY MONTH IS MAY AND HERE THE OI FELL BY 581 CONTRACTS DOWN TO 139,802 CONTRACTS. WE HAVE WITNESSED A MASSIVE SHORT COVERING AT THE BANKS WITH RESPECT TO SILVER…SOMETHING IS SCARING THEM TO DEATH!!!

 

 

 

ON A NET BASIS WE GAINED A SMALL 210 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A 647 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 857 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN ON THE TWO EXCHANGES:  210 CONTRACTS...AND ALL OF THIS   DEMAND OCCURRED WITH A 30 CENT GAIN IN PRICING// YESTERDAY.  THERE IS ONLY ONE ANSWER AS TO WHY SILVER COMEX IS BEHAVING QUITE DIFFERENT TO THE GOLD COMEX AND THAT IS SHORT COVERING BY THE BANKERS.

 

 

 

 

 

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 10 notice(s) filed for 50,000 OZ for the MARCH, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY:  219,221  CONTRACTS

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  336,712  contracts

 

 

 

 

 

 

 

 

 

Initial standings for  MAR/GOLD

MAR 11 /2019.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
385.800
oz
Scotia
12 kilobars
Deposits to the Dealer Inventory in oz nil

oz

 

 

 

 

 

 

Deposits to the Customer Inventory, in oz  

 

 

 

 

NIL

 

oz

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No of oz served (contracts) today
8 notice(s)
 800 OZ
(0.02488 TONNES)
No of oz to be served (notices)
38 contracts
(3800 oz)
Total monthly oz gold served (contracts) so far this month
327 notices
32700 OZ
1.017 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 1 kilobar entries

 

we had 0 deposit into the customer account

i) Into JPMorgan:  nil oz

ii) Into everybody else:  nil

total gold deposits: nil oz

we had 1 gold withdrawals from the customer account:

i) out of Scotia: 385.800 oz

12 kilobars

 

 

total gold withdrawing from the customer; 385.800   oz

thus : 385.500 oz leaves the comex.

we had 0  adjustments…

FOR THE MAR 2019 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 8 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 4 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 MARCH/2019. contract month, we take the total number of notices filed so far for the month (327) x 100 oz , to which we add the difference between the open interest for the front month of MAR. (46 contract) minus the number of notices served upon today (8 x 100 oz per contract) equals 36,500 OZ OR 1.1353 TONNES) the number of ounces standing in this active month of MARCH

Thus the INITIAL standings for gold for the MAR/2019 contract month:

No of notices served (327 x 100 oz)  + {46)OI for the front month minus the number of notices served upon today (8 x 100 oz )which equals 36.700 oz standing OR 1.1353 TONNES in this active delivery month of MARCH.

We GAINED 2 contracts or an additional 200 oz WILL  STAND AT THE COMEX AS THEY REFUSED TO MORPH INTO LONDON BASED FORWARDS AS WELL AS NEGATING TO ACCEPT A FIAT BONUS.

 

HOWEVER, THE GOLD COMEX (AND SILVER COMEX) ARE NOW IN STRESS AS THE CROOKS ARE DESPERATE TO FIND PHYSICAL METAL.

SURPRISINGLY NO GOLD HAS BEEN ENTERING THE COMEX VAULTS AND WE HAVE WITNESSED THIS FOR THE PAST YEAR!!  WE HAVE ONLY 11.388 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE)

 

 

 

 

 

 

 

total registered or dealer gold:  366,127.915 oz or  11.388 tonnes
total registered and eligible (customer) gold;   8,035,858.276 oz 249.94 tonnes

FOR COMPARISON

MARCH 2018 VS MARCH 2019 CONTRACTS

 

 

 

 

 

 

 

ON FIRST DAY NOTICE MARCH 1/2018: TOTAL GOLD TONNAGE STANDING FOR DELIVERY: 2.1524 TONNES

THE FINAL AMOUNT OF GOLD TONNAGE: MARCH 31/2018:  1.6114 TONNES AS THE REST MORPHED INTO LONDON BASED FORWARDS.

IN THE LAST 29 MONTHS 105 NET TONNES HAS LEFT THE COMEX.

 

THE GOLD COMEX IS NOW IN STRESS AS
1. GOLD IS LEAVING THE COMEX
2. GOLD IS LEAVING THE REGISTERED CATEGORY OF THE COMEX.

end

And now for silver

AND NOW THE  DELIVERY MONTH

MAR INITIAL standings/SILVER

MAR 11 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
83,282.198 oz
CNT
int Delaware

 

 

Deposits to the Dealer Inventory
nil oz
Deposits to the Customer Inventory
nil
oz
No of oz served today (contracts)
10
CONTRACT(S)
50,000 OZ)
No of oz to be served (notices)
400 contracts
2,000,000 oz)
Total monthly oz silver served (contracts) 4858 contracts

(24,290,000 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 147 million oz of  total silver inventory or 49.32% of all official comex silver. (147 million/298 million)

 

i) Into everybody else: 0 oz

 

 

 

 

 

 

 

 

 

 

 

 

 

total customer deposits today: nil   oz

 

we had 2 withdrawals out of the customer account:

i) Out of CNT:  40,139.788  oz

ii) out of Int Delaware:  43,142.410 oz

 

 

 

 

 

 

 

 

 

 

 

total withdrawals: 83,282.198    oz

 

we had 1 adjustment

i) out of Scotia:

5,229.860 oz was adjusted out of the customer Scotia and this landed into the dealer account of Scotia

 

total dealer silver:  94.704 million

total dealer + customer silver:  300.084 million oz

 

 

 

 

The total number of notices filed today for the MARCH 2019. contract month is represented by 10 contract(s) FOR  50,000  oz

To calculate the number of silver ounces that will stand for delivery in MAR, we take the total number of notices filed for the month so far at 4858 x 5,000 oz = 24,290,000 oz to which we add the difference between the open interest for the front month of MAR. (410) and the number of notices served upon today (10 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAR/2019 contract month: 4858(notices served so far)x 5000 oz + OI for front month of MAR( 410) -number of notices served upon today (10)x 5000 oz equals 26,290,000 oz of silver standing for the MAR contract month.  This is a strong number of oz standing for an off delivery month.

We gained a tiny 1 contracts or an additional 5,000 oz will stand as bankers queue jumped in order to receive badly needed physical metal. The silver comex is in deep stress as this is the 7TH day in a row of a huge gain in silver oz standing. WE ALSO WITNESSED HUGE SHORT COVERING BY THE BANKERS AS THEY SEEM TO BE SCARED ABOUT SOMETHING!1

 

 

 

 

 

ON MARCH 1.2018 WE HAD 24.670 MILLION OZ OF SILVER STAND FOR DELIVERY. BY THE CONCLUSION OF THE DELIVERY MONTH, 27.190 MILLION OZ STOOD AS QUEUE JUMPING IN THE SILVER COMEX ARENA HAD BEEN THE NORM FOR QUITE A WHILE.

 

 

 

 

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

TODAY’S SILVER VOLUME:  47,653 CONTRACTS

 

 

CONFIRMED VOLUME FOR YESTERDAY: 78,329 CONTRACTS… 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 78,329 CONTRACTS EQUATES to 391 million OZ  55.9% OF ANNUAL GLOBAL PRODUCTION OF SILVER

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

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

end

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV FALLS TO -3.18% (MAR11/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.81% to NAV (MAR11/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -3.18%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 13.05/TRADING 12.66/DISCOUNT 3.18

END

And now the Gold inventory at the GLD/

MARCH 11/WITH GOLD DOWN $8.00 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 766.59 TONNES

MARCH 8/WITH GOLD UP $13.40: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 766.59 TONNES

MARCH 7/WITH GOLD DOWN $1.40 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 766.59 TONNES

MARCH 6/WITH GOLD UP $3.30 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 766.59 TONNES

MARCH 5/WITH GOLD DOWN ONLY $1.70: A HUGE WITHDRAWAL OF 5.87 TONNES FROM THE GLD INVENTORY AND THIS GOLD HAS BEEN USED IN THE WHACKING PROCESS YESTERDAY AND TODAY/INVENTORY RESTS AT 766.59 TONNES

MARCH 4/WITH GOLD ANOTHER $12.50 TODAY: A HUGE WITHDRAWAL OF 11.76 TONNES FROM THE GLD INVENTORY//INVENTORY RESTS AT 772.46 TONNES

MAR 1/WITH GOLD DOWN $16.90 TODAY; A HUGE WITHDRAWAL OF 4.11 TONNES FROM THE GLD INVENTORY//INVENTORY RESTS AT 784.22 TONNES

FEB 28/WITH GOLD DOWN $4.80: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 788.33

FEB 27/WITH GOLD DOWN $6.80: NO CHANGE IN GOLD INVENTORY//INVENTORY RESTS AT 788.33 TONNES

FEB 26  WITH GOLD DOWN $1.10: A WITHDRAWAL OF 1.18 TONNES FROM THE GLD INVENTORY/INVENTORY RESTS AT 788.33

FEB 25/WITH GOLD DOWN $3.10: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 789.51 TONNES

 

FEB 22/WITH GOLD UP $5.15 A HUGE WITHDRAWAL OF 4.99 TONNES OF GOLD FROM THE GLD INVENTORY/INVENTORY RESTS AT 789.51 TONNES

FEB 21/WITH GOLD DOWN $19.50/ A SURPRISE GAIN (DEPOSIT) OF 2.05 TONNES INTO THE GLD INVENTORY/INVENTORY RESTS AT 794.50 TONNES

FEB 20/WITH GOLD UP $3.10 TODAY: SURPRISINGLY NO CHANGE IN GOLD INVENTORY/GLD INVENTORY RESTS AT 792.45 TONNES

FEB 19/WITH GOLD UP $22.95/ TWO TRANSACTIONS: A HUGE 3.82 TONNES OF GOLD WITHDRAWAL FROM THE GLD THIS MORNING AND THEN  0.58 TONNES THIS AFTERNOON///INVENTORY RESTS AT 792,45 TONNES. FROM FEB 1/2019 UNTIL TODAY, GOLD IS UP $24.25 AND YET GOLD WITHDRAWALS ARE A HUGE 31.42 TONNES/THIS IS CRIMINAL!!

FEB 15/WITH GOLD UP $8.00 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 796.85 TONNES

FEB 14//WITH GOLD DOWN $1.10: WE HAD ANOTHER PAPER RAID (WITHDRAWAL) OF 2.04 TONNES/INVENTORY RESTS AT 796.85 TONNES/

FEB 13:/WITH GOLD UP $1.40 TODAY: ANOTHER PAPER RAID BY OUR CROOKED BANKERS AS THEY WITHDREW ANOTHER 2.23 TONNES OF GOLD FROM THE GLD. INVENTORY RESTS AT 798.89 TONNES

FEB 12: WITH GOLD UP $2.20 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 802.12 TONNES

FEB 11/WITH GOLD DOWN $6.25 TODAY: ANOTHER PAPER WITHDRAWAL OF 1.17 TONNES OF GOLD AND THIS GOLD WAS USED TO WHACK OUR PRECIOUS METAL TODAY/INVENTORY RESTS AT 802.12 TONNES

FEB 8/WITH GOLD UP $4.00/THE CROOKS WITHDREW ANOTHER HUGE 6.59 TONNES OF PAPER GOLD AND THIS GOLD WAS USED TO CONTAIN THE PRICE OF GOLD/INVENTORY RESTS AT 803.29 TONNES

FEB 7/WITH GOLD UP 35 CENTS/ANOTHER PAPER GOLD WITHDRAWAL OF 2.06 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 809.76 TONNES

FEB 6/WITH GOLD DOWN $4.85 TODAY: A STRONG PAPER WITHDRAWAL OF 1.37 TONNES FROM THE GLD/INVENTORY RESTS AT 811.82 TONNES

FEB 5/WITH GOLD UP $.30 TODAY: A HUGE PAPER WITHDRAWAL OF 4.11 TONNES/INVENTORY RESTS AT 813.29 TONNES

FEB 4/WITH GOLD DOWN $2.65: TWO TRANSACTIONS: i)A MASSIVE WITHDRAWAL OF 8.37 TONNES OF PAPER GOLD WAS REMOVED FROM THE GLD AND THEN ii) a A STRONG DEPOSIT OF 2.00 TONNES/INVENTORY RESTS AT 817.40 TONNES

FEB 1/WITH GOLD DOWN $3.00 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 823.87 TONNES

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

MAR 11/2019/ Inventory rests tonight at 766.59 tonnes

*IN LAST 557 TRADING DAYS: 168.46 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 457 TRADING DAYS: A NET 1.64 TONNES HAVE NOW BEEN REMOVED INTO THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

MARCH 11/WITH SILVER DOWN 7 CENTS: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 516,000 OZ/INVENTORY RESTS AT 309.676 MILLION OZ///

MARCH 8/WITH SILVER UP 34 CENTS: STRANGE!! TWO TRANSACTIONS!!  IN THE MORNING A WITHDRAWAL OF 703,000 OZ FROM THE SLV/INVENTORY RESTS AT 307,800 OZ/ IN THE AFTERNOON: A DEPOSIT OF 1.56 MILLION OZ/INVENTORY FINALLY RESTS AT 309.160 MILLION OZ//

MARCH 7/WITH SILVER DOWN 4 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 308.503 MILLION OZ//

MARCH 6/WITH SILVER DOWN 2 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 308.503 MILLION OZ

MARCH 5/WITH SILVER UP ONE CENT: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 308.503 MILLION OZ///

MARCH 4/WITH SILVER DOWN 14 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV; A WITHDRAWAL OF 871,000 OZ OF SILVER FROM THE SLV///INVENTORY RESTS AT 308.503 MILLION OZ/

MARCH 1/ WITH SILVER DOWN 38 CENTS/NO CHANGE IN SILVER INVENTORY

FEB 28/WITH SILVER DOWN 12 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.374

FEB 27/WITH SILVER DOWN 14 CENTS//A  SMALL CHANGE IN INVENTORY: A WITHDRAWAL OF 610,000 OZ//SLV INVENTORY RESTS AT 309.374 MILLION OZ/

FEB 26/WITH SILVER DOWN ONE CENT; NO CHANGE IN INVENTORY/RESTS AT 309.984

FEB 25./WITH SILVER DOWN 7 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.984 MILLION OZ/

FEB 22/WITH SILVER UP 7 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.984 MILLION OZ///

FEB 21/WITH SILVER DOWN 37 CENTS: SURPRISINGLY A DEPOSIT OF 1.688 MILLION OZ OF SILVER INVENTORY/ INTO THE SLV/INVENTORY RESTS AT 309.984 MILLION OZ///

FEB 20/WITH SILVER UP 19 CENTS AND ON A TEAR: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 308.296 MILLION OZ/

FEB 19/WITH SILVER UIP 25 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 938,000 OZ/INVENTORY RESTS AT 308.296 MILLION OZ/

FEB 15/WITH SILVER UP 19 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 307.358 MILLION OZ/

FEB 14/WITH SILVER DOWN 11 CENTS: A DEPOSIT OF 423,000 OZ/INVENTORY RESTS AT 307.358 MILLION OZ

FEB 13/WITH SILVER DOWN 4 CENTS TODAY: ANOTHER BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 938,000 OZ FROM THE SLV./INVENTORY RESTS AT 306.935 MILLION OZ/

FEB 12 WITH SILVER UP 3 CENTS TODAY:  NO CHANGE IN SILVER INVENTORY AT TH SLV/INVENTORY RESTS AT 307.873 MILLION OZ/

FEB 11/WITH SILVER DOWN 13 CENTS TODAY:A BIG CHANGE IN SILVER INVENTORY; A WITHDRAWAL OF 1.126 MILLION OZ FROM THE SLV INVENTORY/INVENTORY RESTS AT 307.873 MILLION OZ/

FEB 8/WITH SILVER UP 11 CENTS: ANOTHER WITHDRAWAL OF 657,000 OZ/INVENTORY RESTS AT 308.999  MILLION OZ/

FEB 7/WITH SILVER DOWN 1 CENT TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.656 MILLION OZ/

FEB 6/WITH SILVER DOWN 13 CENTS TODAY; A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 938,000  OZ/INVENTORY RESTS AT 309.656 MILLION OZ/

FEB 5/WITH SILVER DOWN 3 CENTS; NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 310.594 MILLION OZ.

FEB 4/WITH SILVER DOWN 4 CENTS: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 129,000 OZ TO PAY FOR FEES/.INVENTORY RESTS AT 310.594 MILLION OZ/

FEB 1/WITH SILVER DOWN 14 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY  RESTS AT 310.723 MILLION OZ/

 

MAR 11/2019:

 

Inventory 309.676 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 2.13/ and libor 6 month duration 2.68

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

G0LD LENDING RATE: + .55

 

 

XXXXXXXX

12 Month MM GOFO
+ 2.43%

LIBOR FOR 12 MONTH DURATION: 2.88

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.45

end

 

PHYSICAL GOLD/SILVER STORIES

end
i) GOLDCORE BLOG/Mark O’Byrne

Silver Bullion Is The Portfolio Insurance To Buy Now

– Silver prices are low right now and it is time to buy at these bargain prices
– Economists can forecast the next financial earthquake about as well as seismologists can predict a tsunami
– Fear of war, defaults, inflation, civil unrest and anything that undermines trust in government may drive up precious metal prices
– Silver is a better bargain than gold as it is 65% below its 2011 peak

By William L. Silber via Marketwatch


Silver in USD – 10 Years (GoldCore.com)

Fear drives up precious metal prices. Fear of war, defaults, inflation, civil unrest and anything that undermines trust in government. A week after the Lehman Brothers bankruptcy in 2008, gold and silver jumped by 15%. Three years later, during the height of the European government debt crisis, when the obligations of Italy, Ireland, and Greece resembled junk bonds, silver more than quadrupled in value, while gold increased 250%.

Today, fear of a financial collapse has receded, and so have the prices of both precious metals. Gold sits at about $1,300 and silver languishes a little above $15. Is it time to buy at these bargain prices?

The answer is yes, especially silver, but not for the reasons you think.

Few worry about inflation in today’s U.S. economy, but right after the Great Recession, when the Federal Reserve embarked on its program of quantitative easing to jump-start the economy, many were concerned that inflation would emerge. With unemployment reaching 10% in 2009, the Fed expanded money and credit, drove down short-term interest rates to zero, and bought longer-term government bonds and mortgages in unprecedented amounts. According to basic economic analysis, too much money chasing too few goods leads to inflation. But the last nine years have upended that conventional wisdom. Unemployment is now under 4% and inflation remains in check. Buying precious metals to protect against inflation today seems foolish.

But no one knows when the next monetary upheaval will hit. The trigger might be an unanticipated default by a big company that has taken on too much debt — and there are many of those owned by private-equity investors. Or inflation may spurt when we least expect it. Economists can forecast the next financial earthquake about as well as seismologists can predict a tsunami. They know it only after they see it, but then it’s too late to take cover.

Precious metals resemble insurance. We pay premiums before disaster strikes, hoping that we won’t need to make a claim. A small investment in silver and gold, less than 5% of a portfolio, serves the same purpose. We should buy insurance when the premiums are low and keep the coverage. Just let the protection sit there so you can sleep well at night.

The ageless storehouses of gold and silver work when nothing else does, like during the Great Recession. Both precious metals are excellent investments to hedge against unforeseen risks. Silver makes sense because it is cheaper, rises faster than gold when disaster strikes, and is easily divisible into small coins, just in case you need to buy a loaf of bread or an iPhone and paper currency doesn’t work. Gold also belongs in a portfolio, because a small amount goes a long way in settling obligations.

But right now silver is a much better bargain. It has declined by more than 65% from its 2011 peak while gold is off by about 30%. Portfolio insurance is cheap today. If you own silver, hold on. If not, buy it.

Keeping precious metals in the proper framework, a key but relatively small part of a portfolio, avoids the disaster of Nelson Bunker Hunt, the richest man in the world in the 1960s, who went bankrupt buying silver. Escalating inflation during the 1970s made everyone a buyer, but no one did it on a scale like the Texas oil tycoon. Hunt ultimately bought almost 200 million ounces, more than the combined annual output of the four largest-producing countries, and was accused of trying to corner the market. He denied the charge but wound up going bankrupt in the process of accumulating his horde.

How does the richest man in the world lose everything? Instead of treating silver as an investment, part of a portfolio along with other assets, he fell in love with the white metal to the point of obsession, buying more with borrowed money than even he could afford when prices declined.

The lesson: Buy silver now, but do not become obsessed.

Courtesy of Marketwatch

 

 

News and Commentary

Gold holds near one-week high on global slowdown worries (Reuters.com)

‘Brexit in peril’ as May faces heavy defeat (CNBC.com)

Australia’s Newcrest to buy Canadian copper and gold mine for $807 million (Reuters.com)

Feds inch closer to approving Alaska mining project (MCClatchydc.com)

Powell’s ‘60 Minutes’ message to stress Fed independence & efforts to support average American (Powell’s net worth=$100M+) (MarketWatch.com)

Opinion: Silver, not gold, is the portfolio insurance to buy now (MarketWatch.com)

Why Europe’s U-turn has panicked investors (Moneyweek.com)

DAVID BRADY: COMMODITIES SET TO MOVE MUCH HIGHER (PalisadeRadio.com)

Central banks push gold futures down so they can get more metal to remonetize (Gata.org)

Mansa Musa: The richest man who ever lived (The golden king) (BBC.com)

Gold Prices (LBMA PM)

08 Mar: USD 1,294.10, GBP 989.34 & EUR 1,153.95 per ounce
07 Mar: USD 1,285.30, GBP 921.20 & EUR 1,144.17 per ounce
06 Mar: USD 1,285.55, GBP 978.82 & EUR 1,136.82 per ounce
05 Mar: USD 1,285.00, GBP 975.19 & EUR 1,134.78 per ounce
04 Mar: USD 1,287.45, GBP 972.93 & EUR 1,135.14 per ounce
01 Mar: USD 1,309.95, GBP 989.27 & EUR 1,152.23 per ounce

Silver Prices (LBMA)

08 Mar: USD 15.11, GBP 11.56 & EUR 13.48 per ounce
07 Mar: USD 15.07, GBP 11.47 & EUR 13.33 per ounce
06 Mar: USD 15.09, GBP 11.49 & EUR 13.36 per ounce
05 Mar: USD 15.11, GBP 11.47 & EUR 13.33 per ounce
04 Mar: USD 15.16, GBP 11.50 & EUR 13.38 per ounce
01 Mar: USD 15.56, GBP 11.75 & EUR 13.67 per ounce

Recent Market Updates

– EU Isn’t Ready for the Next Recession
–  JPMorgan Is Bullish on Gold as a Hedge Against Rising Inflation
– Gold – It Might Be Different This Time
– Euromillions Winners To Invest In Gold In 2019?
– Gold Still on a Long Term Track to Reach $2,000 An Ounce
– “Gold Is A Global Thermometer Of Risk” – CEO Q+A: Stephen Flood, GoldCore
– U.S. Mint Suspends Silver Bullion Coin Sales After Sales Double In February
– MMT: Modern Monetary Madness Will Lead To Higher Taxes and Inflation

Mark O’Byrne
Executive Director

GATA STORIES WITH RESPECT TO GOLD/PRECIOUS METALS.

China will not devalue its currency in order to spur exports, reports its chief central banker Yi.

(courtesy Yahoo/GATA)

China will not devalue to spur exports, central bank chief says

 Section: 

From Agence France-Press, Paris
via Yahoo News
Sunday, March 9, 2019

China has gone to great lengths to support its currency and would not devalue the renminbi to spur exports or combat trade frictions, the governor of the central bank said today.

Speaking on the sidelines of China’s annual parliamentary session, Yi Gang said Washington and Beijing had discussed exchange rates in recent trade talks and reached a consensus on many “crucial” issues.

… 

U.S. President Donald Trump has long accused Beijing of manipulating its currency to gain a trade advantage and Washington has been seeking assurances on the exchange rate in the ongoing trade talks between the two nations.

“Let me stress here that we will never use the exchange rate for the purpose of competition, nor will we use the exchange rate to increase China’s exports or as a tool in handling trade frictions,” Yi said. “We have committed not to do this.” …

… For the remainder of the report:

https://www.yahoo.com/news/china-not-devalue-renminbi-spur-exports-centr…

… 

END

Sound money returns to West Virginia as they end sales taxation on gold and silver

(MoneyMetalsNews/GATA)

West Virginia legislature votes to end sales taxation on gold and silver

 Section: 

From Money Metals News Service, Eagle, Idaho
Friday, March 8, 2019

CHARLESTON, West Virginia — Sound-money advocates rejoiced today as the West Virginia legislature overwhelmingly passed Senate Bill 502 and sent it to Gov. Jim Justice for his signature.

First passed in the West Virginia Senate unanimously last month, the measure removes state sales taxation of precious metals, specifically on gold, silver, platinum, and palladium bullion and coins.

State Sen. Craig Blair introduced SB 502 with the goal of encouraging precious metals purchasers to keep their investment dollars in the state rather making investments elsewhere. The bill affects purchases of platinum, gold, palladium, or silver bullion valued upon its precious metal content, whether in coin, bar, or ingot form.

The Sound Money Defense League helped make the case to West Virginia legislators, explaining why charging sales taxes on money itself is beyond the pale. In effect, those states that collect taxes on purchases of precious metals are inherently saying gold and silver are not money at all. …

… For the remainder of the report:

https://www.moneymetals.com/news/2019/03/08/west-virginia-gold-silver-ta…

* * *

END

Dave Kranzler (and so do I) believe that Barrick’s bid for Newmont signals “peak gold” i.e. most of the major deposits have already been found and thus the mergers by the biggies to keep alive

(courtesy Dave Kranzler/IRD)

Dave Kranzler: Does Barrick’s bid for Newmont signal ‘peak gold’?

 Section: 

9:10p ET Sunday, March 10, 2019

Dear Friend of GATA and Gold:

Barrick Gold’s bid to acquire Newmont Mining, Dave Kranzler of Investment Research Dynamics in Denver writes today, likely signals “peak gold” — a belief that few if any major gold deposits will be found and that acquiring another big gold-mining company is the only way for Barrick to avert resource depletion.

Kranzler’s analysis is headlined “Is Barrick Gold Signaling Peak Gold?” and it’s posted at IRD here:

http://investmentresearchdynamics.com/is-barrick-gold-signaling-peak-gol…

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

END

Powell thinks that Trump cannot fire him.  I think he can but only for cause. Powell goes on 60 Minutes as he tries to calm markets.

(courtesy CNBC/GATA)

Fed chairman says Trump can’t fire him

 Section: 

By Jeff Cox
CNBC, New York
Sunday, March 10, 2019

Federal Reserve Chairman Jerome Powell said in an interview aired today that he does not think he can be fired by President Donald Trump.

While continuing to avoid direct comment on the president’s withering criticism of central bank interest rate policy, Powell told “60 Minutes” that Trump can’t remove him from office.

“The law is clear that I have a four-year term, and I fully intend to serve it,” Powell told the CBS news magazine show. Asked directly if he thought Trump could fire him, he said, “no.” …

… For the remainder of the report:

https://www.cnbc.com/2019/03/11/fed-chair-powell-the-law-is-clear-trump-..

END



iii) Other Physical stories
China has increased its official reserves by around 10 tonnes each month.  No doubt that all of their gold has been bought years ago and they are now only officially recording it but at an extremely slow face. However are they signalling the fact that they want a gold backed yuan?
(courtesy zerohedge)

China’s Gold-Buying Spree Extends To Third Month

After China’s official gold reserves rose for the first time in around two years (since Oct 2016) in December, Beijing appears to have joined the global gold rush, increasing its gold reserves for the third month in a row in February to 60.26 million ounces.

As we previously notedChina has long been silent on its holdings of gold as many countries are turning away from the greenback.

The value the country’s holdings of the precious metal reached US$79.5 billion, increasing by more than $3 billion compared to the end of last year.

Goldman Sachs has flagged central-bank buying as a plank supporting its bullish outlook for gold, which it expects to rally to $1,400 an ounce over six months.

China is also trying “to diversify its reserves” away from the greenback, according to Jeffrey Halley, senior market analyst at currency broker OANDA. The analyst told the South China Morning Post that the state of affairs in global politics, including a trade war with the US, are driving China’s interest to buy gold as a “safe haven hedge.” 

Just as we saw in 2015/2016, it appears China is reducing its US Treasury exposure as it increases its gold holdings

In January, China dropped to sixth place among the world’s largest holders of the yellow metal behind Russia. With its 67.6 million ounces of gold, Russia now stands in fifth place behind the US, Germany, France, and Italy.

Last month’s inflow of 9.95 tons follows the addition of 11.8 tons in January and 9.95 tons in December. Should China continue to accumulate bullion at that pace over 2019, it may end the year as the top buyer after Russia, which added 274.3 tons in 2018.

Crucially, the size of the gold addition are far less important than the signaling effect – why did China decide now was the right time to publicly admit its gold reserves are rising?

After months of seeming stability in the yuan relative to gold, Q4 2018/Q1 2019 saw China seemingly allow gold to appreciate relative to the yuan (although the last week or so has seen Yuan strengthen against gold)

One wonders if Alasdair Macleod is on to something when he notes thatif the yuan is to replace the dollar for China’s trade, officials will have to back it with gold

It is hard to see how the US can match a sound-money plan from China. Furthermore, the US Government’s finances are already in very poor shape and a return to sound money would require a reduction in government spending that all observers can agree is politically impossible. This is not a problem the Chinese government faces, and the purpose of a gold-linked jumbo bond is not so much to raise funds; rather it is to seal a price relationship between the yuan and gold.

Whether China implements the plan suggested herein or not, one thing is for sure: the next credit crisis will happen, and it will have a major impact on all nations operating with fiat money systems. The interest rate question, because of the mountains of debt owed by governments and consumers, will have to be addressed, with nearly all Western economies irretrievably ensnared in a debt trap. The hurdles faced in moving to a sound monetary policy appear to be simply too daunting to be addressed.

Ultimately, a return to sound money is a solution that will do less damage than fiat currencies losing their purchasing power at an accelerating pace. Think Venezuela, and how sound money would solve her problems. But that path is blocked by a sink-hole that threatens to swallow up whole governments. Trying to buy time by throwing yet more money at an economy suffering a credit crisis will only destroy the currency. The tactic worked during the Lehman crisis, but it was a close-run thing. It is unlikely to work again.

Because China’s economy has had its debt expansion of the last ten years mostly aimed at production, if she fails to act soon she faces an old-fashioned slump with industries going bust and unemployment rocketing. China offers very limited welfare, and without Maoist-style suppression, faces the prospect of not only the state’s plans going awry, but discontent and rebellion developing among the masses.

For China, a gold-exchange yuan standard is now the only way out. She will also need to firmly deny what Western universities have been teaching her brightest students. But if she acts early and decisively, China will be the one left standing when the dust settles, and the rest of us in our fiat-financed welfare states will left chewing the dirt of our unsound currencies.

Is China’s “signal” an explicit warning of the end to the dollar era that has existed since August 1971, when gold as the ultimate money was driven out of the monetary system.

In fact, that appears to be exactly what is happening as for the first time since the end of the second world war, and catalyzed by the GFC 2008/9, central banks have begun to aggressively diversify into gold and away from the US dollar…

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.

A federal judge tells traders that they can combine cases (with the other 6 banks) as they accused JPMorgan of rigging the precious metals market
(courtesy CNBC)

Federal judge tells traders they can combine cases accusing JP Morgan of rigging metals market

  • Litigation in a separate civil case has been put on hold until at least May at the behest of the Justice Department, which is investigating a “related criminal case” that involves alleged market manipulation by precious metals traders at J. P. Morgan.
  • Judge John Koeltl of the Southern District of New York appointed the White Plains, N.Y., law firm Lowey Dannenberg as interim lead counsel for the proposed class action.

71671201

Spencer Platt | Getty Images

A group of traders from across the U.S. who allege that J. P. Morgan Chase manipulated precious metals markets for years are one step closer to bringing a class action suit against the nation’s largest bank.

Earlier this month, a federal judge said five separate lawsuits making similar allegations against the bank could be combined, potentially including thousands of people who traded in the precious metals market from Jan. 2009 through Dec. 2015.

Litigation in a separate civil case has been put on hold until at least May at the behest of the Justice Department, which is investigating a “related criminal case” that involves alleged market manipulation by precious metals traders at J. P. Morgan.

J. P. Morgan declined to comment on this story.

Judge John Koeltl of the Southern District of New York appointed the White Plains, N.Y., law firm Lowey Dannenberg as interim lead counsel for the proposed class action.

Vincent Briganti, a partner at the firm, filed the first suit seeking class action status in November on behalf of Dominick Cognata, a trader who alleges he suffered losses due to J.P. Morgan’s illegal trading conduct in the silver and gold futures and options markets.

That was after the federal court in Connecticut unsealed a criminal plea agreement by John Edmonds, a former J.P. Morgan metals trader. In his guilty plea, Edmonds, who is 36-years old, admitted that he and other “unnamed co-conspirators” fraudulently manipulated the precious metals markets while they were employed at J. P. Morgan from 2009 to 2015.

Edmonds said he had learned the illegal trading tactics from senior traders, and then used them hundreds of times with the knowledge of and consent of his immediate supervisors.

Briganti’s lawsuit also names John Edmonds and a group of yet-to-be-identified precious metals traders and the bank as defendants.

On Wednesday, the lawyers sent a letter to Judge Koeltl saying they were having difficulty locating Edmonds to serve him legal papers and requested a 30-day extension to do so, which the judge granted on Thursday. Briganti noted that they have been in contact with Edmonds’ attorney in the criminal case. Edmonds’ attorney and Briganti could not be reached for comment.

“We are hopeful that this extension will result in completing service on Mr. Edmonds without formal motion practice and a request for alternative means of service,” Briganti said in the letter.

The next step in the civil case is for the plaintiffs to file an amended class action complaint and set a schedule for defendants to respond.

In addition to the proposed class action, J. P. Morgan also faces a separate civil suit which also accuses the bank of rigging precious metals markets.

end

March 4.2019

Parker City News

JP Morgan faces potential class action lawsuit after guilty pleas by a former metals trader

Traders from across the U.S. are banding together to accuse J. P. Morgan Chase of manipulating precious metals markets for years.

At least six lawsuits, all making similar allegations against the nation‘s largest bank, have been filed in New York federal court in the past month, since federal prosecutors in Connecticut with a former J. P. Morgan Chase metals trader.

The cases could potentially include thousands of people who traded in the precious metals market. The White Plains, N.Y., law firm Lowey Dannenberg is asking the court to combine the cases and name it as the lead.

The law firm‘s commodities group is led by Vincent Briganti, the attorney who filed the first lawsuit on behalf of Dominick Cognata, a New York resident who alleges he suffered losses due to J. P. Morgan‘s trading conduct in the silver and gold futures and options markets.

A combined case, seeking class action status, would include anyone who purchased or sold futures contracts or an option on NYMEX platinum or palladium or COMEX silver or gold between at least Jan. 1, 2009, and Dec. 31, 2015. The lawyers believe that “at least hundreds, if not thousands” of traders would be eligible to join the case.

Named as defendants in all of the lawsuits are John Edmonds, a 36-year old former metals trader at J. P. Morgan, a group of yet-to-be-identified precious metals traders and the bank.

Edmonds, a New York resident, pleaded guilty in October to one count of conspiracy to defraud the market and manipulate prices of precious metals futures contracts and one count of commodities fraud. In the criminal plea, Edmonds admitted that he and other “unnamed co- conspirators” at J. P. Morgan, fraudulently manipulated precious metals markets from 2009 to 2015, the same time frame covered in the class action suits.

Briganti filed the initial class action on Nov. 7, just one day after the Justice Department unsealed Edmonds‘ plea in the U.S. District Court of Connecticut.

Edmonds admitted in his guilty plea that he deployed the illegal trading scheme hundreds of times with the direct knowledge and consent of his immediate supervisors. Plaintiffs say they have suffered economic injury, including monetary losses, as a direct result of actions by Edmonds and the other unnamed J. P. Morgan metals traders in the futures and options contracts.

One of the suits alleges that “the number of unlawful trades that JP Morgan traders executed in precious metals futures markets is at least in the thousands.”

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

The Justice Department‘s criminal investigation is still ongoing and recently caused a separate related civil case to be put on hold for at least six months while the government continues its investigation. That civil lawsuit, which also accuses J. P. Morgan of rigging the precious metals market, was filed in 2015 by hedge fund manager Daniel Shak and two commodity traders.

After reviewing the details of the plea agreement, David Kovel, the attorney for Shak‘s suit, sought to re- interview Edmonds, along with two other current and former senior traders at the bank. However, the government argued that reopening questioning would be detrimental to the ongoing criminal investigation. The federal judge overseeing the proceedings ordered a six-month stay in the civil case.

Kovel declined to comment.

Edmonds was originally scheduled to be sentenced in Hartford, Conn., on Wednesday, Dec. 19, but a court filing on Nov. 27 shows the sentencing has been postponed until June. A spokesman for the U.S. Attorney for Connecticut could not elaborate on why the sentencing was postponed since the court filing is under seal.

-END-

Justice Department stalls another class action in gold market rigging, this one against JPM

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

Proceedings in the federal class-action anti-trust lawsuit against JPMorganChase charging the investment bank with manipulating the gold and silver futures markets —

http://www.gata.org/node/18844

— have been suspended for three months at the request of the U.S. Justice Department, just as the department has arranged suspension of proceedings in the class-action anti-trust lawsuit against Deutsche Bank charging similar market manipulation.

… 

In both cases the Justice Department has told U.S. District Court for the Southern District of New York that proceedings would jeopardize its criminal investigation into market rigging, which has been admitted by a former JPMorganChase trader, John Edmonds, who awaits sentencing.

According to court filings, the White Plains, New York, law firm representing the plaintiffs against JPMorganChase, Lowey Dannenberg, concurred in the government’s request to suspend proceedings. The stay is to continue for three months and may be extended.

The Justice Department’s motion, granted by the court on February 26 —

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

— said “the government is not seeking an open-ended stay that could indefinitely postpone this matter and thus jeopardize the parties’ interests in a timely resolution.” The motion added, “Any developments in the criminal case during the period the consolidated action is stayed may reduce or completely resolve the need to litigate certain issues in the consolidated action.”

Much of the Justice Department’s motion is redacted to conceal from the public evidence still under investigation. Edmonds has said he and other traders manipulated the gold and silver markets for years with the knowledge of their supervisors at JPMorganChase. In its motion to conceal that evidence, also granted by the court on February 26, the Justice Department said disclosure “could lead to destruction of evidence, flight from prosecution, and otherwise interfere with the government’s ability to conduct its investigation”:

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

Monetary metals investors may be skeptical of the Justice Department’s stalling the Deutsche Bank and JPMorganChase cases, since the department and the U.S. Commodity Futures Trading Commission do not seem ever to have responded conscientiously to complaints of gold and silver market rigging until the class actions commenced.

How much time will the court give the Justice Department to delay getting to the bottom of the issue? The court might hasten matters if enough monetary metals mining companies protested the harm done to them and their shareholders by market rigging, but of course most monetary metals mining companies don’t mind at all.

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

* * *

 

-END-

Your early MONDAY 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/ LAST AT: 6.7247/

 

//OFFSHORE YUAN:  6.7328   /shanghai bourse CLOSED UP 57.13 POINTS OR 1.92% /

 

HANG SANG CLOSED UP 274.88 POINTS OR 0.97%

 

 

2. Nikkei closed UP 99.53 POINTS OR 0.47%

 

 

 

 

 

 

3. Europe stocks OPENED GREEN

 

 

 

 

 

 

 

 

/USA dollar index RISES TO 96.34/Euro RISES TO 1.1243

3b Japan 10 year bond yield: FALLS TO. –.03/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 111.20/ 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:: 56.40 and Brent: 66.24

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO +.06%/Italian 10 yr bond yield UP to 2.51% /SPAIN 10 YR BOND YIELD DOWN TO 1.05%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.45: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 3.77

3k Gold at $1295.00 silver at:15.12   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 27/100 in roubles/dollar) 66.07

3m oil into the 56 dollar handle for WTI and 66 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 111.20 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 1.0092 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1347 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now POSITIVE territory with the 10 year RISING to +0.07%

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 3.04%

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

6.  TURKISH LIRA:  UP  TO 5.4399

 

Global Markets Rebound On China Stimulus Hopes

After a weekend with relatively few news besides another deadly crash involving Boeing’s new 737 Max which prompted China to halt usage of the airplane and sent Boeing shares plunging and dragging Dow futures lower (Boeing is the biggest member of the Dow), all eyes were on China to see if Friday’s rout when the Shanghai Composite plunged nearly 5% following a key downgrade by a state-owned brokerage, would persist. It did not, and instead the Shanghai and Shenzhen Composites both closed at their highs, up almost 2% for the day following talk of more stimulus from Beijing.

China’s main bourses made back almost half the 4% they lost in Friday’s mauling as the country’s central bank chief pledged more support. The blue-chip CSI300 index jumped 1.9% after Friday’s 4.0 percent fall, which followed poor trade data and a major local bank issuing a rare “sell” rating on a major insurer. China’s central bank on Sunday pledged to further support the slowing economy by spurring loans and lowering borrowing costs after data showed a sharp decline in lending data due to seasonal factors. Furthermore, PBoC Governor Yi Gang stated there is still some room for a RRR cut although the amount of room is less compared with a few years ago and there were also comments from PBoC Deputy Governor Pan that they will keep liquidity ample and set up counter cyclical adjustments, while a central bank official also noted that February money supply data is normal and inline with historical trends. The central bank pledge came as data showed new bank loans in China fell a far more than expected in February, while money supply growth also missed forecasts.

This helped set the mood across both Asia and Europe, where stocks climbed, while S&P futures advanced even as Dow futures tumbled on the previously noted plunge in Boeing shares, while the dollar nudged higher after Fed Chairman Jerome Powell reiterated patience on rates during his first “60 Minutes” appearance, while Treasuries fell.

China’s rebound lifted bullish spirits across the region, with stocks in Japan and Hong Kong also higher, helping lift the MSCI Asia index 0.5%, as traders sought to put the worst week for global stocks of 2019 in the rearview mirror.

European banks helped push the Stoxx 600 Index to its first advance in four sessions, with Commerzbank AG among the biggest winners on reports it’s getting closer to a merger with Deutsche Bank. London’s FTSE made a more impressive 0.8% but that was partly the flip side of a near three-week low for the pound as the chances of Prime Minister Theresa securing support for her Brexit deal at home this week looked increasingly dim. Britain is due to leave the EU in 18 days.

Kallum Pickering, an economist at Berenberg, said a delay to Brexit would be modestly positive for sterling as it would cut the near-term risk of the UK leaving without a transition period in place to minimize economic disruption. “However, it would not completely eliminate the hard Brexit risk which could still come at the end of a delay or as a result of a second referendum,” he added.

In the US, Boeing’s shares were down more than 9% in pre-market trading as China grounded flights involving the model.

Boeing

With no fresh trade deal “optimism”, the bulls hung on to the “patient Fed” narrative, and as Hans Goetti, founder of HG Research, told Bloomberg TV, “with the Fed taking an easier path rather than continuing to raise interest rates, the outlook for equities is relatively constructive” even if Powell didn’t say anything new at all.

Meanwhile, as Bloomberg notes, a barrage of data releases this week will be watched for clues on growth and the impact of central bank policy in the U.S., European Union and China, with the Bank of Japan the next to meet. On the trade front, Beijing and Washington are in general agreement on many crucial issues and have held meaningful discussions on foreign exchange, People’s Bank of China Governor Yi Gang said.

In rates, Treasuries declined after initially rising as the 10-year Treasury hit a two-month low yield of 2.607%. It last stood at 2.6501% while European bonds traded mixed.

In Fx, the day’s European FX gainer was Norway’s crown, after strong inflation data there raised expectations among economists that its central bank will increase interest rates again soon. With markets trading in a period of low volatility, investors have rushed to buy currencies where central banks are still raising rates or economic data has exceeded expectations, indicating a brighter economic outlook.

“This makes (a) March rate hike from Norges Bank a complete done deal, which is a positive for the currency,” Nordea strategists said.

The optimism over Norway’s economic outlook was in contrast to the general caution over the broader European economy after the European Central Bank last week slashed its growth forecasts for 2019 and postponed its expectations of a first rate hike. Short euro bets, already near a 2-1/2 year high, according to latest futures positioning data for the week ending March 5, is likely to receive a further boost in the coming days, investors said. The single currency shuffled sideways at $1.1247 after falling 1.2 percent last week, its biggest weekly loss in more than six months. The Turkish lira held steady even as the country entered its first recession in a decade.

On Monday, President Trump will release the 2020 budget today (comes into effect in October) in which he is to request USD 8.6BN of funding for border wall and is to ask Congress to reduce non-defense spending by an average of 5% in fiscal 2020 budget. Furthermore, growth is exp. 3.2% in 2019, 3.1% in 2020, 3.0% in 2021 and a 10-year forecast of 3.0%, while the proposal will see a balanced budget in 2034 rather than the typical 10-year horizon that has been a goal for Republicans.

Late on Sunday, Fed Chair Powell said that downside risks to the economic outlook have increased and that more economies began to slow 6 months ago, while he added that US economic outlook is still favourable but that trade talks have added to the uncertainty. Fed Chair Powell also stated the economy is in a good place and rates are appropriate considering muted inflation, while he added the Fed does not feel any hurry to change interest rates again and will wait to observe how global conditions evolve before making any changes.

Elsewhere, oil prices climbed as Saudi Arabia extended deeper-than-agreed production cuts into a second month. West Texas Intermediate crude futures rose 0.5 percent to $56.35 per barrel. Brent futures went up 0.4 percent to $62.98 a barrel. Gold eased about 0.1 percent to $1,296.62 per ounce, after briefly breaching $1,300 for the first time since March 1 in the previous session.

On today’s calendar, retail sales figures for January due at 830am EDT will be a key focus given December’s surprisingly weak reading.

Market Snapshot

  • S&P 500 futures little changed at 2,751.50
  • STOXX Europe 600 up 0.3% to 371.83
  • MXAP up 0.5% to 156.87
  • MXAPJ up 0.5% to 517.18
  • Nikkei up 0.5% to 21,125.09
  • Topix up 0.6% to 1,581.44
  • Hang Seng Index up 1% to 28,503.30
  • Shanghai Composite up 1.9% to 3,026.99
  • Sensex up 0.9% to 36,994.11
  • Australia S&P/ASX 200 down 0.4% to 6,180.19
  • Kospi up 0.03% to 2,138.10
  • German 10Y yield unchanged at 0.068%
  • Euro up 0.1% to $1.1247
  • Italian 10Y yield rose 3.4 bps to 2.15%
  • Spanish 10Y yield rose 11.6 bps to 1.167%
  • Brent futures up 1.2% to $66.51/bbl
  • Gold spot down 0.1% to $1,296.74
  • U.S. Dollar Index little changed at 97.35

Top Overnight News from Bloomberg

  • While People’s Bank of China Governor Yi Gang addressed this weekend U.S. concerns over China’s potential depreciation of the yuan in order to blunt the impact of tariffs imposed by the Trump administration, he evaded any mention of a one-sided pledge by Beijing to hold its currency stable. That issue has been a key sticking point in talks in recent weeks, as President Donald Trump pushes for a deal
  • Saudi Arabia will supply its clients with significantly less oil than they requested in April, extending deeper-than-agreed production cuts into a second month, a Saudi official familiar with the policy said
  • Citigroup Inc. is planning to join UBS with an electronic currency trading and pricing engine in Singapore, setting up systems to boost liquidity in Asia’s biggest foreign-exchange hub
  • The Bank of England is asking some U.K. banks to hold three times more liquid assets in the event of a market meltdown with a no-deal Brexit later this month, the Financial Times reported, citing people familiar with the situation

Asian equity markets traded somewhat indecisive as the region digested Friday’s mixed US jobs data in which NFPs severely missed expectations and although the declines across the major US indices were only mild, the S&P 500 still posted a 5th consecutive daily loss and its worst weekly performance YTD. ASX 200 (-0.4%) and Nikkei 225 (+0.4%) were mixed with Energy the underperformer in Australia which some attributed to news of Norway’s sovereign wealth fund exiting energy companies and with the Japanese benchmark reflecting a choppy currency. Elsewhere, Hang Seng (+0.9%) and Shanghai Comp. (+1.9%) eventually outperformed despite a steep drop in lending data over the weekend, as some attributed the sharp decline in New Yuan Loans and Aggregate Financing to seasonal factors, while the PBoC also reportedly pledged to further support the slowing economy by spurring loans and reducing the cost of borrowing. Finally, 10yr JGBs were subdued with price action contained by the indecisive risk tone and lack of BoJ presence in the market.

Top Asian News

  • Hong Kong Tightens Liquidity With $192 Million Peg Defense
  • China Pushes Against U.S. Trade Demands on Enforcement, Yuan
  • India Announces Poll Dates as Modi Fights to Retain Power
  • StanChart Is Said to Challenge Essar Steel Sale to ArcelorMittal

After opening with gains of around 0.5%, major European indices are largely unchanged [Eurostoxx 50 +0.1%] following an indecisive lead from Asia where Chinese stocks eventually outperformed. Goldman Sachs noted that China A shares could be set for large gains as “fear of missing out” takes hold. If retail optimism were to return to its peaks in 2015 and 2018, the CSI 300 would give approximately 50% and 15% potential upside respectively from current levels, Goldman says. Equities across Europe have somewhat waned off opening highs with the FTSE 100 (+0.8%) holding its composure amid a weak domestic currency ahead of a series of Parliamentary votes this week. Meanwhile, Spain’s IBEX (-0.1%) underperforms as heavyweight BBVA (Unch) swings between gains and losses amid reports the Co. is planning board changes in the coming months. Over in Germany, Wirecard (+5.6%) shares lift the benchmark as the Co. expects the final report on fraud allegations soon (Note: Shorting ban on Co shares are still ongoing). Deutsche Bank (+2.2%) also supports the German index amid pre-market reports that the Co. and Commerzbank (+4.6%) have begun tentative merger talks. Finally, Dow Jones Mar’19 futures dipped lower as Boeing shares dropped 10% in pre-market trade following the weekend Boeing 737 Max 8 crash on its way to Nairobi, marking the second disaster for the jet in five months. Several airlines have since grounded the Boeing jet, whilst Airbus shares (+0.4%) are little moved.

Top European News

  • Banca Ifis Plunges After Main Investor Ousts CEO Giovanni Bossi
  • Global Risks Threaten to Choke Off Europe’s Growth Engine
  • Telecom Italia Study on Governance Issues Inflames Investor Spat
  • Danske Laundering Contagion Feeds a New Fear in Borderless EU
  • Debenhams in Talks for More Financing as Ashley Circles

In FX, GBP – Sterling remains under pressure across the board, irrespective of latest bullish bank calls (this time via Eur/Gbp rather than Cable), as talks between UK and EU officials on changes to the back-stop continue to hit a brick wall, and the prospects of a breakthrough looks increasingly bleak before Tuesday’s meaningful vote. Indeed, given the ongoing impasse and indications that PM May’s deal will be roundly rejected again, rumours are now circulating about a provisional or conditional vote before going back to Parliament, and with the possibility of adding the Cox amendment to try and coerce more support. Cable briefly reclaimed 1.3000+ status amidst reports that the EU will not demand more money from Britain in exchange for an extension to the March 29 Article 50 deadline, in contrast to earlier suggestions, but is back below the round number and not far from circa 1.2950 lows hit when stops were said to have been tripped around the 1.2960 level (trend-line support). Meanwhile, Eur/Gbp is hugging the top of a 0.8675-40 range, leaving the aforementioned short strategy underwater at this stage, as the institution entered at 0.8630 with a 0.8760 stop and 0.8400 target.

  • NOK – The Norwegian Crown is also bucking an otherwise relatively muted and rangebound start to the week for G10 currencies/pairings, but outperforming in wake of significantly stronger than forecast CPI data, and especially the core inflation measure. Eur/Nok fell from 9.8250+ to just shy of 9.7600 in response, but is currently holding near 9.7700.
  • EUR/NZD/AUD/CAD/JPY/CHF –  All narrowly mixed vs the Greenback, with the single currency reclaiming some lost ground after its sharp post-ECB demise, but struggling to sustain recovery gains much beyond 1.1250 with resistance seen at 1.1270 (Fib level) and 1.1298, while hefty options may also keep Eur/Usd in check given 2.7 bn sitting between 1.1300-20 and not much on the downside until 1.7 bn at the 1.1200 strike. Meanwhile, the Kiwi is still performing better than the Aussie down under, partly due to post-NFP weakness in its US counterpart and switching via the Aud/Nzd cross that is pivoting 1.0350. Consequently, Nzd/Usd is hovering just above 0.6800, while Aud/Usd is capped circa 0.7050. Elsewhere, the Loonie continues to benefit from upbeat Canadian jobs data in contrast to the headline US tally, and firmer crude prices to an extent, as Usd/Cad eases back from recent 1.3460 highs. Turning to Usd/Jpy and Usd/Chf, both are nearer the apex of respective 111.30-110.90 and 1.0095-70 trading parameters, as the broad Dollar and DXY regain some composure – index meandering between 97.500-250.

In commodities, WTI and Brent futures are trading with firm gains of around USD 0.50/bbl each with recent upside exacerbated by comments from a Saudi Official which stated that the Kingdom plans to cut April crude exports below 7mln BPD. This follows comments from Saudi Energy Minister Al-Falih last week who noted that the Kingdom is currently exporting around 7-8mln BPD of crude. Furthermore, the Official stated that Saudi are to keep oil production in April well below 10mln BPD, compared with February’s output of 10.316mln BPD; according to Industry sources. In the metals complex, spot gold remains sub-1300/oz as the yellow metal is largely dictated by USD-action. RBC notes that gold may still be “well off its YTD highs” although they caveat this by stating “[they] remain of the view that macro headwinds have softened”. The bank also reiterated their 2019 annual average price forecast at USD 1338/oz, and launched a 2020 forecast at USD 1367/oz. Elsewhere, Dalian iron ore prices fell as much as 3.6%, hitting the lowest levels for this month so far as demand waned due to restrictions on steel productions.

Looking at today’s calendar, the main data focus will be in the US where the January retail sales report is due to be released. Prior to that we’ll see the January industrial production and trade balance prints in Germany, and February industrial sentiment reading in France. December business inventories in the US will also be out. Meanwhile, President Trump is expected to release his proposed fiscal 2020 budget, Euro Area finance ministers are due to meet in Brussels and the BoE’s Haskel is due to speak.

US Event Calendar

  • 8:30am: Retail Sales Advance MoM, est. 0.0%, prior -1.2%; Retail Sales Ex Auto and Gas, est. 0.6%, prior -1.4%
    • Retail Sales Control Group, est. 0.6%, prior -1.7%
  • 10am: Business Inventories, est. 0.6%, prior -0.1%
  • 7pm: Powell Gives Welcome Remarks at Conference in Washington

DB’s Jim Reid concludes the overnight wrap

Welcome to a new week. My category 5 man-flu has now been downgraded to a cat 3 cold. This has been a brutal 10 days with the miracle that it didn’t come from my family or hasn’t been passed onto them. The other good news is that it’s obliterated my hay fever symptoms but as I’m slowly getting better they are reminding me of their presence. All I know is that ahead of next winter I’ll be barging past old ladies and children to get to the front of the flu jab queue. I didn’t bother getting one last year and I won’t make that mistake again.

Markets have gone from relatively healthy to decidedly under the weather over the last 36-48 business hours although markets have bounced a little in Asia overnight. Sentiment completely changed after the ECB confused monetary policy meeting on Thursday. A little more doubts creeping in on an imminent trade deal plus a soft payrolls report (albeit with a bumper average hourly earnings print) also contributed. This helped reinforce what was generally the worst week of the year for equities (S&P 500 -2.16%, Stoxx 600 -0.98%, MSCI DM -2.16% , MSCI EM -2.04% and MSCI Global -2.14%) and best week for government bonds.

European banks led equity declines last week on the ECB, trading down -5.78% (-1.89% on Friday) and weighing on the broader STOXX 600 which fell -0.98% (-0.89% Friday). The euro weakened -1.14% (+0.38% Friday), touching its lowest level since mid-2017, and the dollar gained +0.87% (-0.31% Friday). US equities joined the selloff, with the S&P 500, DOW, and NASDAQ dropping -2.16%, -2.21%, and -2.46% (-0.21%, -0.09%, and -0.18% Friday) respectively. Small-caps underperformed sharply, with the Russell 2000 down -4.26% (-0.11%).

Global sovereign bond yields broadly rallied with Bund yields down -11.4bps (+0.2bps Friday) and Treasury yields -12.5bps (-1.1bps Friday). Yield curves flattened, with the US 2s10s curve down -3.7bps (-0.2bps Friday) but within its recent range at 16bps. The German yield curve hit its lowest level since 2016 at 60bps, having fallen -9.1bps (-1.0bps Friday). Peripheral spreads rallied as well, with BTP yields down -22.8bps (+3.5bps Friday). Somewhat surprisingly, despite the broad selloff in equities and the rally in rates, measures of implied volatility remained relatively low, with the VIX increasing +2.5pts (-0.5pts Friday) to 16.1 and the V2x up only +1.0pts (+0.5pts Friday) to 14.4.

The week in Asia has started on a positive note with markets largely heading higher with the Nikkei (+0.37%), Hang Seng (+0.65%), Shanghai Comp (+1.54%) and Kospi (+0.01%) all up. Elsewhere, futures on the S&P 500 are trading flat (-0.02%). Over the weekend we got China’s February credit stats with aggregate financing dipping sharply to CNY 703bn (vs. CNY 1300bn expected) and new loans standing at CNY 885.8bn (vs. 950.0bn expected). The February credit data should however be taken in the context of outsized gains in January (aggregate financing at CNY 4,635.3bn vs. 3,307bn expected). So we probably need another month or two to eat the whole picture. In the meantime, China’s February CPI came in line with consensus at +1.5% yoy while PPI stood at +0.1% yoy (vs. +0.2% yoy expected)

In other news, the PBOC Governor Yi Gang said that they still had some room to cut the amount of money banks must hold in reserve, but it’s much smaller than in previous years. Elsewhere, on trade the White House economic adviser said that the US is making “headway” in trade negotiations with China, brushing off reports suggesting diminishing prospects for a deal and push-back from China while adding that he remains “optimistic” that President Trump and China’s President Xi Jinping would meet to sign a trade pact at some point — possibly in March or April.

Turning to yesterday’s interview by Feb Chair Powell now where he said that the Fed will pay close attention to today’s retail sales report after the surprise dip in December. He also said that the Fed didn’t stop hiking rates because of pressure from President Trump and added that the current rate setting is “roughly neutral”.

Moving on to this week now and with markets suddenly feeling a bit fragile again all eyes turn to Brexit this week in what could be a crucial few days. How many times have we said that about Brexit at the start of a week? Could this really be the one? A BoJ meeting (Friday) and US CPI (Tuesday), PPI (Wednesday) and retail sales data (today) are also highlights, while we’ll get the important monthly data dump in China (Thursday). China’s NPC also enters its second week while the European Parliament votes on a resolution about security threats linked to Chinese tech.

In terms of Brexit, on Tuesday the House of Commons is scheduled to hold a meaningful vote on the amended Withdrawal Agreement. In the meantime, the Telegraph reported over the weekend that if PM May is forced to extend Brexit this week then the EU is preparing to impose punitive conditions, including a multi-billion pound increase in the £39 bn divorce payment. If true this will go down like a lead ballon amongst leavers. The rest of the weekend news has been very quite in terms of progress on the backstop. Unless a legal rabbit is pulled out of the hat very soon tomorrow’s vote will likely result in another huge loss for Mrs May. So surely lots of news today on whether any progress has been made. If the vote is rejected tomorrow, lawmakers will then be asked on Wednesday if the UK should take a no-deal Brexit option off the table in its negotiations. If they do, then on Thursday Parliament will hold a vote on an extension to Article 50. Should the extension be accepted then this would likely result in it being signed off at the March 21/22 EU summit. It’s worth noting that we also get the likely overshadowed Spring Statement from Chancellor Hammond on Wednesday. No policy announcements are expected however we will get an updated set of forecasts. See our UK economists’ preview here .

As for the BoJ on Friday, no change in policy is expected and the meeting also doesn’t include an outlook report so it’s likely to be mostly a non-event. The most important data releases in the US this week include January retail sales today, February CPI on Tuesday and February PPI on Wednesday. We’ll also get important preliminary January durable and capital goods orders data on Wednesday and February industrial production on Friday. For retail sales today, core sales are expected to have risen a solid +0.6% mom during the month following the very weak December stats which lead to a lot of head scratching. CPI is expected to have risen +0.2% mom at the core level (DB at +0.17%) which should still leave inflation running towards the upper end of what would be consistent with the Fed’s inflation target, with both the three- and six-month annualised rates expected at 2.38%. Meanwhile PPI is expected to also be up +0.2% mom at the core. Friday’s 0.4% mom AHE print shows that there is some inflation pressure out there. The 3.4% yoy rate was the highest since April 2009. Even just before the GFC we were only generally in the low to mid 3% range. If you want to get an up to date feel for what all relevant measures are telling you about the US economy, our economists have just started a new monthly dashboard which includes things like their momentum index, FCI, recession probability models, and their hawk-dove scorecard for Fed officials, among others. See here for more.

The highlights in Europe this week are January industrial production reports in Germany, UK and the Euro Area today, Tuesday and Wednesday respectively, January GDP in the UK on Tuesday, and final February CPI revisions for Germany and France on Thursday and the Euro Area on Friday. After the weekend data, China also see’s February’s retail sales, industrial production and fixed asset investment on Thursday. It’s also note worth noting in China is that the NPC will begin its second week from tomorrow. The Congress will conclude with Premier Li Keqiang’s annual press conference on Friday.

 

3. ASIAN AFFAIRS

i)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED UP 57.13 POINTS OR 1.92% //Hang Sang CLOSED UP 274.88 POINTS OR 0.97%  /The Nikkei closed UP 99.53 POINTS OR 0.47%/ Australia’s all ordinaires CLOSED DOWN .38%

/Chinese yuan (ONSHORE) closed DOWN  at 6.7247 AS TRUCE DECLARED FOR 3 MONTHS /Oil DOWN to 56.40 dollars per barrel for WTI and 66/24 for Brent. Stocks in Europe OPENED GREEN 

ONSHORE YUAN CLOSED DOWN // LAST AT 6.7247 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.7328: / TRADE TALKS NOW ON/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

3 a NORTH KOREA/USA

 

 

 

i)North Korea/

3 b JAPAN AFFAIRS

3 C CHINA

China/Friday night

Auto sales crash in February..we are witnessing an accelerating industry collapse

(courtesy zerohedge)

China Auto Sales Crash in February Amid Accelerating Industry Collapse

Just days ago, we reported that US auto sales had tumbled to 18 month lows, continuing what has been an abhorrent start to the year for the automotive industry after a dismal 2018. Unfortunately, the global misery doesn’t appear to be anywhere near over yet, with arguably the world’s most important market, China, set to post another slate of miserable sales numbers for February.

New estimates from China’s Passenger Car Association paint an outright terrifying picture for auto demand in the world’s most populous nation as we head approach the end of the first quarter. Unofficial auto sales data for February includes China’s passenger vehicle sales down 16.9% YOY to 1,207,538 units for wholesale, and down 19.0% YOY to 1,169,751 units for retail. Luxury brands saw a 2.9% retail sales decline and mainstream JV brands had a 13.8% decline. Domestic brands had a 27.5% decline.

Meanwhile, the latest weekly sales estimates for OEMs released by Morgan Stanley show that Chang’an Ford will see a stunning drop of 76.1% in sales, followed by China’s Brilliance Motor, who is set to see a 47.3% decline in sales. BAIC Motor estimates are for sales down 46.9% and SAIC GM expects a drop in sales of 20.8%. SAIC VW and FAW VW will fall 8.9% and 4.1%, respectively, while Dongfeng Nissan is set to fall 8.3%.

Bucking the trend will be names like GAC Honda and BAIC Hyundai, rising 6.4% and 6.8%, respectively. GAC Toyota and Beijing Benz also will see positive traction in YOY sales, rising 20.4% and 17.1% YOY despite falling 62.2% and 21.6% sequentially, while the oddly named GAC Trumpchi is flat Y/Y.

That said, almost all manufacturers are expected to experience significant double digit sequential drops.

The CPCA also expects a “lackluster” market in March with limited effect from discounts offered to rural customers. We reported just days ago that car dealers in China, especially those in rural areas, were unable to lure in new buyers with traditional incentives, even as price reductions of more than 10% from the sticker price are now common, while interest free loans are also being offered to try and lure car buyers to showrooms, especially outside of China’s major cities. For now, however, buyers  aren’t taking the bait.

Making matters worse, amid the slowdown of the world’s second largest economy consumers are starting to do away with big purchases in general. There’s also an argument surfacing that heavy incentivizing could wind up doing more harm than good to automakers’ finances, possibly setting up for more layoffs, restructurings and mergers in the industry.  Shi Jianhua, a deputy secretary general of China Association of Automobile Manufacturers, said “2019 should be a year of the survival of the fittest and we may see more merger and reorganization cases in the auto industry.” 

In late January, Beijing urged authorities to roll out measures to help boost vehicle sales in rural areas, noting that a similar effort about a decade ago helped revive demand. While local governments have yet to make any announcements, automakers are moving ahead with offers of their own.

In the U.S., we noted earlier this month that SUV demand had finally dried up. SUVs were, until this month, one of the sole remaining bright spots in the rapidly slowing U.S. auto market. Despite the fact that they were crippling traditional sedan sales, Americans’ transition to SUVs was seen as a silver lining, prompting many automakers to make infrastructure changes to account for the change in demand.

Those days, however, seem to be over, according to the latest, February U.S. auto sales data. Fiat Chrysler posted its first monthly sales decline in a year, according to Bloomberg. The kicker? Jeep, the company’s driving force for the past several years, showed a rare back-to-back drop in deliveries. Charlie Chesbrough, senior economist of Cox Automotive said: “The results today suggest a much bigger story: The sales pace has finally shifted into a lower gear.”

One thing is for sure: misery in the auto industry isn’t limited to just one country, and doesn’t look like it’ll be stopping anytime soon.

 end
Despite the huge 4.64 trillion yuan injection into the economy  (685 billion USA), growth was a paltry 703 billion yuan.  In other words they needed 6.6 yuan injection to get one yuan unit of growth.  Not good!!
(zerohedge)

Chinese Credit Growth Unexpectedly Crashes In February

Was that it for China’s “Shanghai Accord 2.0”?

One month after the PBOC injected a gargantuan 4.64 trillion yuan ($685 billion) into the economy – more than the GDP of Saudi Arabia – in the month of January in the country’s broadest credit measure, the All-System Financing Aggregate, a credit injection that was so massive it even prompted the fury of China’s prime minister Li Keqiang who lashed out at the central bank for its unprecedented debt generosity in a time when China was still pretending to be on a deleveraging path, the PBOC once again shocked China-watchers, only this time to the downside, when overnight the Chinese central bank reported that in February, aggregate financing increased by a paltry 703 billion yuan, roughly half the expected 1.3 trillion…

… and the lowest print on record in the recently revised series.

On a year-over-year basis, TSF stock growth (after adding local government special bond issuance) was 10.1% in February, vs 10.4% in January, according to Goldman calculates; if adding all local government bond net issuance to TSF flow data, adjusted TSF stock growth at 11.0% yoy in February, lower than 11.2% in January. The implied month-on-month growth of adjusted TSF was 11.9% SA ann, lower than 17.2% in January, all suggesting the January record outlier credit surge may have been just that.

In terms of the impacts of the liquidity supply on the economy, sequential growth of broadly defined TSF (which includes all local government bond issuance) was 11.9% month-over-month annualized after seasonal adjustment, still above its year-over-year growth of 11.0%. This is not particularly low, just not as high as its 17% growth pace in January.

Curiously, new yuan loans increased by 886BN yuan in February (of which new loans to the real economy were 764BN) also below the 950BN consensus, and more notably, above the total system financial aggregate…

… which meant that after surging in January, when shadow banking added some 343BN yuan in new credit, the first positive print in one year, in February shadow banking reversed sharply, and posted a significant drop to the tune of 364.8BN as China’s shadow deleveraging appears to have returned with a bang, after the forceful political pushback against the re-emergence of shadow banking following the January print. Virtually all shadow banking components posted a drop in February, with trust and entrust loans down RMB 55bn (vs RMB -35bn in January; Jan-Feb average RMB -45bn), and bank acceptance bills were down RMB 310bn in February (vs an increase of RMB 379bn in January; Jan-Feb average RMB +34bn).

The sudden reversal in shadow credit follows Premier Li Keqiang urging last month that banks should supply more longer-term loans to the real economy after a surge in short-term bill financing. Even so, corporate bond net issuance slowed down sharply to just RMB 81BN in February, down from RMB 499bn in January.

Meanwhile, growth in China’s broad money supply, or M2, once again slumped and after a modest rebound in January, in February M2 Y/Y growth dropped back to 8.0%, the lowest print in series history.

The February collapse in credit creation following January’s extravagant print likely means that just like most other Chinese data in the pre-New Year period, this too was distorted by the Lunar New Year, and as a result the January surge, far from indicative of a major new reflationary boost may simply suggest that China will maintain a prudent approach to overall economic leverage, which however will be bad news for the stock market which in the second half of February went all in on bets that China has doubled-down on reflating both its, and the global economy.

So how did Chinese credit creation look like for the combined Jan-Feb period? While aggregate financing in the first two months was 5.31 trillion yuan, 1.05 trillion yuan higher than in the same period last year, the annual increase was far more tame than when comparing just January 2019 vs January 2018. At the same time, the shadow banking sector shrank 21.7 billion yuan for the two months:

  • Entrusted loans (organized by a bank between borrowers and lenders) were down 120.8 billion yuan
  • Trust loans (made by trust companies to finance infrastructure and real estate) rose 30.8 billion yuan
  • Bankers’ acceptance (short-term credit issued by a company with a bank’s guarantee) up 68.3 billion yuan

Within February total social financing flows data, new RMB loans to the real economy were RMB 764bn vs Jan RMB 3.6 trillion; Jan-Feb average RMB 2.2 trillion), trust and entrust loans were down RMB 55bn in February (vs RMB -35bn in January; Jan-Feb average RMB -45bn), and bank acceptance bills were down RMB 310bn in February (vs an increase of RMB 379bn in January; Jan-Feb average RMB +34bn). Corporate bond net issuance was RMB 81bn in February (vs RMB 499bn in January; Jan-Feb average RMB 290bn).

Commenting on the disappointing February credit data, Goldman’s China analysts led by MK Tang said that they see the slowdown in credit growth as a result of a less supportive policy stance, which is in turn affected by

  1. a rapid rebound in the equity market which started to pose threat of a repeat of the 2015 boom and bust,
  2. positive developments on trade talks and better than expected January export data,
  3. signs of growth holding up into the new year (better export growth, better Caixin manufacturing PMI), which alleviated the concerns about further economic slowdown,
  4. criticism of January loosening in terms of overly loose overall amount and particularly the discount bill component.

Adding to the seasonality commentary, Goldman also noted that while there are technical reasons such as the timing of the Chinese New Year, if the government wanted they could have kept liquidity supply loose despite these reasons if the economy and markets were very weak and trade talks weren’t progressing well.

Another observation: contrary to tradition, where the monthly Chinese monetary data is released in the middle of the month, the February data was released relatively early as there was a press conference hosted by PBOC Governor Yi Gang and 4 deputy governors.

In the conference Governor Yi said January and February data should be viewed together and is clearly more than the same period last year. But this is still not free from the Chinese New Year effects, and January-March data will give a better view. This comment is important since the impact of the holiday on March data is usually limited but this was not the case last year because of the late timing of the festival. To Goldman, this may be a hint that March liquidity supply will once again be relatively ample, and a reversal of the February plunge.

Several other comments made by the governor are particularly worth noting:

  • RRR level is no longer very high after the five cuts since early last year, though there is still room for further reduction. It is necessary to maintain an appropriate level for a developing country.
  • The PBOC has “mostly exited” from the direct management of the FX rate. FX rate flexibility can serve as an automatic stabilizer of the economy and external account. China will not actively use FX as a policy tool to gain export competitiveness. There was no statement on currency stability as a part of the trade deal. Instead the governor said the two sides discussed the need to respect the right to make monetary policy independently and respect market forces in terms of how the FX rate is determined. Note the lack of direct intervention doesn’t mean there has been lack of indirect intervention and the fact that FX flexibility has advantages doesn’t mean the government will not intervene indirectly to maintain stability, with or without pressures from the US.
  • Interest rate level is down, and the key to lower lending rate is to lower risk premium. These need to be addressed by making the rate setting mechanism more market-based and through structural reforms to lower transaction costs. For example improving the bankruptcy system and reinforcement of law.
  • The PBOC reiterated that interest rate arbitrage activities related to discount bills existed but the amount was limited.

To Goldman, the PBOC’s comments suggest a reduced likelihood of further RRR and market interest rate cuts (the bank didn’t expect benchmark rate cuts to begin with). Credit supply in March (seasonally adjusted) is likely to be higher too, especially because bullish financial market sentiment was at least a partial contributor to regulatory tightening in February. Furthermore, given the equity market has already corrected slightly and these data may dampen sentiment even further, policy makers will be sure to watch against risks of shifting too quickly back toward tightening.

So while today’s data will likely lead to even more bearishness for China’s stock market, which as we noted on Friday plunged after state-owned broker CITIC downgraded a state-owned insurer which had become the poster child of the latest market euphoria, sending the Shanghai Composite tumbling almost 5% on Friday, what does all of this mean for Chinese economy? Here Goldman is slightly below market consensus forecasts in terms of January-February industrial activity growth though even with our forecast, the implied sequential growth would still be a little higher than the level in 4Q 2018. And so while January-February activity data together are still subject to slight downside Chinese New Year distortions on net, Goldman expects March data to be stronger on a year-over-year basis. What happens then will depend on whether Beijing once again open up the credit spigots, or if the current sharp slowdown in credit growth persists indefinitely, further depressing China’s already slowing economy.

end

With the downing of Boeing 737 max 8  (Ethiopian Airlines) over the weekend, China has now grounded all Boeing 737’s Max 8.  We are waiting for all Boeings 737 Max 8 to be grounded

(courtesy zerohedge)

It Begins: China Orders Carriers To Ground Boeing 737s After Ethiopian Airlines Crash

China has ordered all domestic carriers to ground their Boeing 737 MAX 8s after one of the jets seemingly dropped from the sky southeast of Addis Ababa just six minutes after taking off on Sunday. That accident – which killed all 157 people on board – was the second involving one of the jets in five months, and has led to speculation that Boeing might order all of the jets to be grounded pending further inspection.

Chinese media outlet Caijing was the first to report the decision, citing sources within China’s domestic airline industry. Thee 737 MAX, the fourth generation of Boeing’s narrow-body 737 line, was first flown in 2016, making the string of crashes – two in five months – unprecedented and, according to some analysts, extremely suspect.

Global Times

@globaltimesnews

China airline officials have suspended operations for the Boeing 737 Max aircraft: report

The first crash occurred in late October when a 737 MAX operated by Lion Air crashed into the Java Sea, killing the nearly 200 people on board. Before the crash, the crew had reported unusual activity in the jet, including the nose of the plane unexpectedly tipping lower, which was blamed on a faulty data system. That crash is still under investigation.

Though its possible the two accidents could be a coincidence, the fact that they both involved brand new planes is particularly concerning. Yet, airlines have been reluctant to ground flights without a cue from Boeing, or some more evidence unearthed by investigators that the crashes could have been the result of some wider flaw in the plane’s design. Ethiopian Airlines, which operated the ill-fated flight ET302 destined for Nairobi, has the best safety record of any carrier in Africa, and its CEO said at a Sunday press conference that its 737 MAXs would remain airborn.

View image on TwitterView image on TwitterView image on TwitterView image on Twitter

Alex Macheras

@AlexInAir

Update: There are currently hundreds of Boeing jets airborne across the globe right now, including an @FlyEthiopian Airlines one.

As aviation analyst Alex Macheras pointed out during a series of appearances on cable news shows, the fact that two Boeing 737s have crashed in such a short period is truly unprecedented, and it is surprising that Boeing hasn’t already ordered all of the planes to be grounded pending a review.

Embedded video

Alex Macheras

@AlexInAir

LIVE: “It is unprecedented that another Boeing is involved in a fatal accident in the space of just five months”

As airlines slowly wake up to the fact that the lives of hundreds of passengers may be at risk, they might opt to ground the planes on their own,.

Already, futures have dipped on the news out of China. If the groundings become a trend, Dow component Boeing could drag down the broader market on Monday.

Dow

end
Brookings calculates that China has been overstating the size of its economy by 2% a year.  These figures are from 2008 through to 2016.  Thus the true state of its economy is overstated by 12%. Thus China is in far worse shape than thought with respect to true debt to GDP.. Kyle Bass is correct
(courtesy zerohedge)

Brookings Says China Overstated Size Of Its Economy By 12%

Since China managed to weather the fallout from the financial crisis without registering much of a slowdown in its “official” GDP figures, playing “guess the real growth rate” has become one of the most popular parlor games among the professional economist set. Whereas the stakes are much higher for academics on the mainland (one of whom was censored and threatened by government thugs after speculating that GDP growth on the mainland might be closer to 2%), researchers at American think tanks have freely offered estimates ranging from 2% to 4% (which, admittedly, would still put China well ahead of the US).

China

But as investors and economists once again cast a wary eye toward China as signs of flagging growth are once again threatening to sink the whole world into a recession, a team of researchers from the Brookings Institute has published a carefully researched paper detailing the exact mechanism by which authorities in Beijing inflate the country’s GDP figures, while estimating that China’s economy is roughly 12% smaller than the official figures would suggest. Brookings published the paper on Thursday, just two days after Party leaders at the annual National Party Congress lowered their economic growth forecast to between 6% and 6.5% of GDP.

Though the paper focused on the period between 2008 and 2016, it’s the latest evidence that China’s economic slowdown has been more severe than believed, and that the growth rate from last year – China’s worst since the early 1990s – might, in reality, be just under 6% (compared with 6.6%).

China

According to Brookings, much of the manipulation in Chinese official government statistics takes place at the local level. In what the FT described as “a legacy of Maoist state planning”, authorities in Beijing hand down growth targets to local officials, who use it to goalseek the official statistics they hand back.

“China’s national accounts are based on data collected by local governments. However, since local governments are rewarded for meeting growth and investment targets, they have an incentive to skew local statistics. China’s National Bureau of Statistics (NBS) adjusts the data provided by local governments to calculate GDP at the national level,” the study’s authors said.

Evidence of this is relatively obvious: Year after year, the sum total of China’s provincial growth figures is larger than the unadjusted national figures reported by Beijing. Though central authorities accused three provinces of doctoring their data back in 2017, authorities have done little else to discourage the practice.

Inflated data in hand, China’s National Bureau of Statistics struggles to adjust it, and though readings before 2008 were reportedly more accurate, more recently, the figures have been further off the mark, according to Brookings.

“NBS has done a lot of work to weed out the fake numbers added by local government, but it just doesn’t have enough power and capacity, nor the right incentives,” Michael Zheng Song, economics professor at the Chinese University of Hong Kong and a co-author of the paper, told the FT. “It would be unfair to blame NBS for fabricating GDP numbers.”

So, now that we’ve once again affirmed what many have widely suspected, what does this mean for US-China trade talks? Well, it would seem to confirm the argument made by an FT columnist earlier this week that President Xi has just as much to lose from a failed trade deal as President Trump.

Here are a few other conclusions from the paper:

  • Official data overstated growth of nominal GDP by an average of 1.7% per year between 2008 and 2016
  • This made the economy 12% smaller in 2016 than figured indicated
  • GDP growth in real terms was overstated by 2% over the same period
  • The paper’s authors are more confident about GDP data in nominal terms versus real terms
  • Overstatement of industrial and investment output were the most severe
  • Data on consumption was found to be the most reliable

But with authorities anxious to suppress any information that would contradict their economic narrative, we now wait to see whether Beijing will declare former Fed Chair and Brookings Institute economist Ben Bernanke (along with the study’s authors) ‘persona non grata’.

4.EUROPEAN AFFAIRS

UK

this is what happens when you have a single payer, socialized health system: disaster

Take a look at the UK health system

(courtesy Mac Slavo)

UK’s Socialized Healthcare (NHS) Satisfaction Hits An 11-Year Low

Authored by Mac Slavo via SHTFplan.com,

The National Health Services, the United Kingdom’s socialized “Medicare for all” government-run single-payer healthcare is not faring too well.  The satisfaction rate is now at an 11-year low as people die waiting days for care in corridors and those wait times reach historically high levels.

The British Social Attitudes poll of nearly 3,000 people found 53% of in England, Scotland, and Wales were satisfied with services last year, according to a report by theBBC.  That is a three percentage point drop since 2017 and the lowest level since 2007. A peak of 70% was seen in 2010.

Record long wait times and a lack of staff are going to be the result of a government-run program of any kind, which is why it’s so deadly when governments take over that segment of a person’s life.

The United Kingdom’s horror stories should dissuade Americans from accepting any form of single-payer.  National Health Service, which celebrated its 70th anniversary on July 5, is imploding rapidly, according to Forbes.

The NHS has struggled to fully staff its hospitals and clinics since its inception in 1948. But today, the shortages are growing worse. 9% of physician posts are vacant making that a disastrous and deadly shortfall of nearly 11,500 doctors.  The NHS is also short 42,000 nursesIn the second quarter alone, nurse vacancies increased by 17%. Meanwhile, in the United States, nearly all states will have a surplus of nurses by 2030. Doctors and nurses simply don’t want to work for the state, which makes their lives far too difficult and their job far too intense for the money.

And it really isn’t that surprising that people don’t want to work as nurses in Great Britain; it’s a stressful job, with long hours and terrible working conditions – all implemented by the authoritarian government control. Some NHS nurses are taking positions at supermarkets because stacking shelves comes with better hours, benefits, and pay, according to a report in the London Economic. Imagine that; a private job is much superior to a government job. –SHTFPlan

Ruth Robertson, from the King’s Fund, said the issues identified by the public were “long-standing” problems that the government had not yet managed to deal with.  Helen Stokes-Lampard, of the Royal College of GPs, said GPs always wanted to provide the best care they could, so it was “disappointing” to see the drop. “We know that general practice is currently facing intense resource and workforce pressures and while GPs are working incredibly hard to combat these, we understand that many patients are still waiting too long to see their doctor – something we find just as frustrating,” she added.

While the satisfaction with NHS is low, it isn’t as low as it has been historically, but it could continue to drop rapidly as people who need care continue to suffer while waiting. The solution? Of course, the government will throw more money at the NHShoping that the horrific conditions they created will evaporate in the face of the almighty pound.

end
Sunday night:  the pound falls on report that only two cabinet ministers has May’s support ahead of this week’s critical votes. We outline a summary of events which are most likely to occur
(courtesy  zerohedge)

Pound Slides On Report Cabinet Has Turned On May Ahead Of Critical Votes

Ahead of what are expected to be a string of disastrous votes in Parliament this week, the British press is already ratcheting up the pressure on Prime Minister Theresa May, who has reportedly lost the support of all but two of her cabinet ministers.

May

The news sent the pound sliding, a portent of what’s likely to be a rocky week for cable traders.

Pound

May is widely expected to lose a Tuesday vote on a slightly modified version of the withdrawal agreement she negotiated with the EU, which was voted down by a historic margin of 230 votes late last year. Assuming that vote fails, May is expected to call a vote on whether Parliament would support a ‘no deal’ Brexit (also expected to fail). Finally, MPs will have the opportunity to vote on whether they would support delaying Brexit by a few months.

If that vote passes, May will be forced to go to the EU27, hat in hand, and ask their permission for a delay at an upcoming summit. Critics say they worry doing so would essentially amount to May giving up any leverage she still had, only to wind up in the exact same place they are now (which is effectively where they have been since the EU signed off on the withdrawal agreement last year). May has already promised that she wouldn’t lead her party in the next round of elections, and speculation has been mounting that she could be effectively ousted by her cabinet before the summit.

May

Courtesy of the Telegraph

Though, if all three votes fail, there’s a chance that May could be out by the end of the week.

Meanwhile, the Bank of England is doing its part to make sure the British people and their banks don’t lose sight of what a sh*tshow a ‘no deal’ exit could be. The FT reported Sunday that the BoE has told some UK banks to triple their holdings of easy-to-sell assets, enough to withstand a ‘severe stress’ under the UK’s macroprudential guidelines. These banks were told they must have enough cash on hand to prepare for a scenario where the market for interbank credit freezes up for 100 days – up from the 30 under BoE rules adopted late last year – and to also prepare for the possibility that banks would be shut out of foreign exchange markets, leaving them unable to swap sterling for dollars, something that persisted for a few days during the financial crisis, according to the FT.

Though the BoE is expected to relent if a deal looks likely, this is what passes for “sensible prudential management” in the age of Brexit. Perhaps the central bank wants to ensure is call for “severe market volatility” becomes a self-fulfilling prophecy if all else fails and the UK crashes out of the EU.

end

 

Germany/USA/Huawei

The USA warns that if Germany does not drop Huawei then they would be at risk of losing intelligence sharing.  With the huge influx of migrants and thus increased terror risks, this is something that Germany could not afford.

(courtesy zerohedge)

U.S. Warns Germany To Drop Huawei Or Risk Losing Intelligence Sharing

 

Following intense pressure from the US on its European allies to boycott the use of Huawei products in the rollout of next-generation 5G products and shut out the Chinese telecom giant from local markets, Germany was the first nation to rebuke Washington, with Handeslblatt reportingone months ago that the German government wanted to avoid excluding products offered by Huawei.

Then it was the UK’s turn, and as we reported three weeks ago, in the latest “serious blow” to US efforts to persuade allies to ban the Chinese supplier from high-speed telecommunications systems, the FT reported that the British government has concluded that it can “mitigate the risk from using Huawei equipment in 5G networks.” The UK National Cyber Security Centre had reportedly determined that “there are ways to limit the risks from using Huawei in future 5G ultra-fast networks” and in doing so it was ignoring escalating US efforts to persuade countries to bar Huawei from their networks on the basis that it could help China conduct espionage or cyber sabotage.

Now, it is the US’ turn to respond to these “insurgencies” by western ally nations, and as the WSJ reports, the Trump administration has told the German government it would limit the intelligence it shares with German security agencies if Berlin allows Huawei to build Germany’s next-generation mobile-internet infrastructure.

Needless to say, the warning is “likely to cause alarm among German security circles” amid persistent terror threat, largely the result of Merkel’s disastrous “Open Door” policies which allowed over 1 million middle eastern immigrants into he country.

Citing a letter dated Friday from U.S. Ambassador to Germany Richard A. Grenell and addressed to Germany’s economics minister, the US diplomat said that the U.S. “wouldn’t be able to keep intelligence and other information sharing at their current level if Germany allowed Huawei or other Chinese vendors to participate in building the country’s 5G network.”

This, as the WSJ notes, marks the first time the U.S. has explicitly warned its allies that refusing to ostracize Huawei could have consequences on these countries’ security cooperation with Washington. European security agencies have relied heavily on U.S. intelligence in the fight against terrorism for instance.

And now the ball is in Europe’s court, which unless it wants to engage in intelligence-sharing with Moscow and Beijing, will find itself very hard pressed to ignore the latest gambit by the Trump admin. It will be just as interesting to watch how Europe seeks to de-escalate the tensions over the treatment of Huawei when both the UK and Germany already made it clear they will not be dictated to by the US.

 

 

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

USA introduces a bill to formally recognize the annexation of the Golan Heights.  Syria wants the Golan Heights back but that will never ever happen.  Syria threatens Israel if she does not give the Golan Heights back to Syria, then Syria will attack Israel.
(courtesy zerohedge)

Syria Notifies Israel It Will Attack If IDF Doesn’t Leave Golan Heights

In a surprising and provocative ultimatum, Syria has notified Israel through United Nations diplomatic channels that it is prepared to go to war if Israel does not leave the Golan Heights.

Syrian Deputy Foreign Minister Faisal Mikdad reportedly sent the message through the head of the United Nations Truce Supervision Organization (UNTSO), Christine Lund, this past week, according to a World Israel News report and later picked up other major Israeli sources, including The Jerusalem Post. “Syria will attack Israel if it does not leave the Golan Heights,” Mikdad told the UN representative.

 

Israeli forces at border fence along Israeli-occupied side of the Golan Heights and Syria, via Reuters.

Mikdad further warned Lund that Syria will respond with force should Israel continue its attacks on Syria, which have occurred more than a dozen times over the past year, but which seem to have recently paused following Russia’s announced delivery of the advanced S-300 anti-air missile defense system to Damascus late last year.

“We will not hesitate to confront Israel,” Syria’s Mekdad said. “We are also not scared away by its [Israel’s] supporters who are helping to perpetuate the occupation of the Golan,” he added.

Damascus’ firm warning appears a response to a controversial bill recently under renewed consideration by US Congress, co-sponsored by Republican Senators Ted Cruz and Tom Cotton, and Democratic Rep. Mike Gallagher, which aims to give formal US recognition of Israel’s sovereignty over the Golan Heights region.

Meanwhile, multiple Israeli political leaders have responded to Syria’s historic claim to the Israeli-occupied Golan and willingness to go to war over it. While speaking on a visit to the Golan Heights, Blue and White party politicians Gabi Ashkenazi, Yair Lapid, Benny Gantz and Moshe Ya’alon vowed, “It is ours and it will stay ours” — certainly a dominant sentiment that cuts across Israeli party lines.

“We will increase the numbers of residents in the Golan, sending a resounding message to all – we will never relinquish the Golan Heights,” Gantz said, according to The Jerusalem Post. “We will enlist the support of the US and the international community to promote Israel’s interests on our northern border,” he added.

This comes after last month the Syrian Army solidified its hold over its side of the occupied Golan after last year defeating al-Qaeda and ISIS groups who had held the Quneitra area for years prior during the Syrian war.

The Jerusalem Post reported at the time (Feb. 13):

The Syrian Army has sent troop reinforcements to a base in the Quneitra area bordering the Golan Heights, according to the Lebanese Al-Masdar News website. The report came just 24 hours after Syria placed its air defenses on high alert across the western part of the country. This is reportedly the first time Syria has reinforced the border since beginning its military operation in the Quneitra area.

The Assad government had long blamed the Israeli Defense Forces of allowing and facilitating the presence of al-Qaeda and ISIS terrorists on the Syrian side of the Golan border area prior to the the Syrian Army liberating Quneitra.

According to a 2017 Wall Street Journal report Israel and Saudi Arabia had aligned to fund and supply radical groups across the Golan border from the opening years of the conflict.

At that time the WSJ had confirmed the already “open secret” of “Israel supplying Syrian rebels near its border with cash as well as food, fuel and medical supplies for years, a secret engagement in the enemy country’s civil war aimed at carving out a buffer zone populated by friendly forces.”

end
Russia
Russian warship is sailing down the English Channel equipped with a vomiting weapon which is hallucinogenic and makes aiming of weapons impossible
(courtesy zerohedge)

Russian Warship Packing ‘Vomit Weapon’ Sparks Fear After Sailing Down English Channel

A Russian warship carrying a “hallucination” weapon that “makes enemies vomit” successfully navigated the English channel over the weekend after conducting “air defense and countersabotage exercises” near Scotland’s only air force base, according to the UK’s Sunday Times.

Royal Navy warship HMS Defender was deployed to shadow the Russian frigate Admiral Gorshkov and three auxiliary vessels, which performed “provocative drills” in territorial waters, according to SNP defense spokesman Stewart McDonald.

The Gorshkov – the first of a new class of Russian frigates – embarked from the Barents Sea port town of Murmansk, home to Russia’s northern fleet.

Hallucinating device

According to the Times, the Gorshkov is equipped with a “5P-42 Filin” or “Owl” optical device which can “provoke hallucinations and sickness in enemies using fast pulses of high-intensity light beams.”

The non-lethal Filin can be used at night or during twilight and is said to be effective from up to two kilometres away. In tests, volunteers who had the weapon turned on them found it was impossible to aim a firearm at a target protected by it. A fifth experienced something like a hallucination and about half noticed “signs of spatial disorientation, as well as nausea and dizziness”. The device is said to agitate the optic nerves of the enemy by modulating the brightness of the light. –The Times

A Royal Navy spokesman said that the Defender was “monitoring the Russian task group and keeping track of their activity in areas of national interest.”

Scottish politicians, meanwhile, weren’t reassured by the Royal Navy’s response to the Russian ships.

“The UK’s Ministry of Defence is failing Scotland, allowing Russian navy vessels sailing through our territorial waters at will to conduct provocative drills like this,” said SNP Defense spokesman Stewart McDonald.

That said, a Royal Navy insider tells the Times that the Russian group was forced to take shelter in the Scottish islands due to bad weather, and continued their journey when conditions improved.

“They were waiting out the weather. Anyone who says they were trying to agitate is pushing fake news,” said the insider.

For anyone who wants to make their own barf gun, watch below:

 watch below:

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Turkey

Turkey officially enters it’s first recession in over 10 years having 2 consecutive quarters of negative growth. Turkey has double digit inflation and owes a huge amount of dollar denominate debt.  No doubt Turkey will enter crisis mode

(courtesy zerohedge)

Turkey Enters First Recession Since The Financial Crisis

While not exactly a surprise after its currency tumbled in 2018 as inflation soared, interest rates jumped, credit collapsed and the country was briefly targeted by US sanctions, overnight Turkey reported that its GDP tumbled by 2.4% last quarter in line with expectations, following a decline of 1.6% in Q3, officially entering a recession for the first time since the financial crisis.

The economic contraction will likely deal a blow to Turkey’s executive president Recep Tayyip Erdogan as the country heads toward bellwether municipal elections this month, although it is unlikely to result in any major political surprises.

For much of the past decade, capital poured into Turkey during an era of record monetary stimulus around the world driven by Erdogan’s push for growth at all costs and his pressure on the central bank to keep interest rates low. However this uninterrupted expansion that boosted the economy by an average of nearly 7% each quarter since late 2009 ended abruptly following a currency crash, policy missteps and an unprecedented diplomatic rift with the U.S, Bloomberg reported.

“This is an indictment of Erdonomics and a direct consequence of a monetary policy in 2018 conducted in the interests of short-term political expediency rather than economic pragmatism,” said Julian Rimmer, a trader at Investec Bank Plc in London.

The recession lays out the dilemma facing both Erdogan and his central bank: while the country desperately needs lower rates to preserve its impressive economic growth rate, inflation remains solidly in the double digits, and any interest rate cuts threaten to unanchor the lira, sending it tumbling once again and unleashing runaway inflation. Meanwhile, investors are worried that that Turkey will face a long slog to recovery as the torrent of foreign capital dries up while households and companies begin paying down debts. Indeed, private consumption tumbled at a whopping 8.9% last quarter, with Turkey’s GDP per capita falling to $9,632 from a little over $10,000 in 2017.

The Turkish lira declined as much as 0.5% after the data release however it has since recouped all losses as Japanese retail investors scrambled to buy the latest dip.

Despite the downturn, Treasury and Finance Minister Berat Albayrak said the silver lining is that the worst is now behind Turkey and the economy is on track for a rapid recovery. Rising exports and tourism income will be the key drivers for growth, he said on Twitter.

Whether he is right remains to be seen, however the undoing of Turkey’s growth model comes at a sensitive time for Erdogan, who braces for his first test at the ballot box since assuming vastly expanded executive presidential powers last year. After the March 31 vote, Turkey isn’t scheduled to hold another election for four years.

In its scramble to reboot growth, the government has pressured state banks to ramp up lending, helping annualized credit growth turn positive last month for the first time since August. It recapitalized three of its lenders by selling bonds to Turkey’s unemployment fund, and is working on a fresh plan to further bolster state-owned banks’ capital. However, for now the outlook remains bleak. GDP may be in contraction through the first half of 2019, followed by four quarters of tepid growth that will average less than 3 percent from a year earlier, according to analyst consensus.

Adding to Turkey’s misfortunes, the central bank is holding rates high to stabilize the lira and keep inflation in check; as a result of high rates, credit shrank by 7.2% on a quarterly basis in the last three months of 2018. This trickled through the economy where industrial production recently plunged by the most in a decade.

“Unlike Turkey’s past V-shaped recoveries, there’s the significant risk that the recovery will be much slower this time round,” said Inan Demir, an economist at Nomura International Plc in London. “The entire Turkish economy may be facing deleveraging pressures.”

 

 

6.GLOBAL ISSUES

A great commentary by Wolf Richter has he describes the 10 worst countries for the highest household debt/GDP. The worst nation is Switzerland but the fastest rise in household debt/GDP is China

(courtesy WolfRichter)

 

State Of The World’s Biggest Debt Slaves: Americans Wimp Out In Just 11th Place

Authored by Wolf Richter via WolfStreet.com,

And where do Chinese consumers fit in?

Americans are infamous for their eagerness to spend money they don’t have. A whole industry has grown up around making that happen, from payday lenders to the government that guarantees or insures a large portion of the mortgages so that lenders and investors don’t have to carry the risk. Consumer debt is turned into asset-backed securities, from government-guaranteed mortgage-backed securities to subprime-auto-loan-backed securities whose top tranches carry an AA-rating or even a AAA-rating.

It all worked out. But then came the moment when Americans deleveraged, mostly by defaulting on their debts, particularly their mortgage debts, which triggered the US Financial Crisis and then the Global Financial Crisis. The world should have learned a lesson, but no. Who has learned a lesson? American consumers whose household debt in relationship to US GDP has continued to decline.

US household debt inched down to 76.4% of GDP in the third quarter 2018, according to the newest batch of global data from the Bank for International Settlements. This was the lowest level since 2002. It put Americans in the inexplicably wimpy, and for the finance sector, insufferable 11th place:

Even at the peak just before the Financial Crisis, American household debt never quite reached 100% of GDP. This is important as we move on to the winners on this list.

UK households also deleveraged after the Financial Crisis, with the UK banking system kept upright only by massive bailouts and the nationalization of some banks. But recently, household debt as percent of GDP has been ticking up, reaching 86.5%, which put the UK into 10th place:

This ratio is a function of two factors: Household debt measured in local currency and the size of the economy measured by nominal local-currency GDP. This ratio cancels out inflation. When household debt grows more slowly than nominal GDP, the ratio declines. When household debt grows faster than GDP, the ratio increases, and consumers are becoming an ever-riskier part of the financial system.

Then there is Sweden. Swedish households used to be notoriously debt-averse, like German households, and their household-debt-to-GDP ratio remained below 50% until 2001. But then someone figured out how to fix that, and suddenly, Swedes went on a phenomenal borrowing binge, and the household-debt-to-GDP ratio nearly doubled over those years to 88.5%, earning them the 9th place in the debt-slave competition:

On this list of winners, the charts are on the same scale, and that’s why there is so much white space above American, British, and Swedish consumers. Consumers that did not do their job in the early part of this century and did not borrow enough fell off the chart entirely, which is a fate that afflicted the Swedes until 2002.

Germans, with a household-debt-to-GDP ratio of merely 52.7%, still, after all these years, would barely register on the bottom of this chart. And Austrians with a ratio of 48.7% wouldn’t even be on the chart. On the other hand, the white space in the charts gets filled in by the winners on this list.

New Zealand, with a household-debt-to-GDP ratio of 93.3% and in eighth place, has been helped along by a property bubble that has been inflating mortgage debts:

Economists love debt slaves.

Household borrowing converts mostly into household spending, which is the biggest contributor to GDP. So economists adore growing household debt because it means growing GDP, and the economic system moves heaven and earth to get consumers to borrow more so that they buy more and add to GDP. And these households become enslaved to their debts and their financiers.

Korean households have made amazing progress becoming debt slaves, now closing in on the glorious 100% line, with household-debt-to-GDP at 96.9%. At the current pace, a couple more years, and they’ll have arrived!

When household borrowing outruns GDP growth for long enough and reaches certain levels, things can get iffy, as US household debt has shown with its starring role in the Financial Crisis though it never even exceeded 100% of GDP. So below are all the countries whose household-debt-to-GDP ratio now exceeds 100%.

Canadian households have long been making headlines with their top-notch borrowing binge to support their top-notch housing bubble. By other debt measures, such as debt-to-disposable income, Canadian and Australian households have been battling over first place for years. In the debt-to-GDP measure, Canadian households are in a still respectable 6th place: This debt will pose some issues as the majestic housing bubbles in top metros are now deflating:

Norwegian households have bravely taken their household-debt-to-GDP ratio from 81% in 2012 to 101% in 2016. But this has since hit a ceiling as even regulators began to fret about the steep ascent, and a down-tick has been observed in the third quarter:

Households in the Netherlands were track to be undisputed king of the hill, with a debt-to-GDP ratio nearing 120%, in part because GDP plunged during the Financial Crisis, which caused the spike in the debt-to-GDP ratio and the collapse of some banks. During the subsequent euro debt crisis, GDP declined again. But since then, the economy has grown, and households have curtailed their borrowing, edging away from the brink, and in the process getting demoted to 4th place:

Households in Denmark exploded their debt-to-GDP ratio from an already high 90% in 2003 to nearly 140% during the euro debt crisis as the country went through a blistering recession. GDP still hasn’t recovered to the level before the debt crisis, as households are maxed out and have been whittling down their debts, but at 116.7% of GDP, the household-debt-to-GDP ratio lands them on 3rd place on the list of the biggest debt slaves in the world:

Australian households have been caught up in one of the biggest housing bubbles in the world, financed by debt. The household-debt-to-GDP ratio more than doubled between 1997 and 2016. Now that the housing bubble is deflating at an astounding pace, the debt ratio has begun to tick down, but remains in second place:

And the #1 debt slaves in the world: Swiss households. This is one of the reasons interest-rate repression remains the rule in Switzerland. The Swiss National Bank has imposed its negative interest rate policy on the country for years, and there have been stories of mortgages with 0% and even negative interest rates. There is simply too much household debt, and no one wants to see it blow up. Hence the negative interest rate policy. But this policy encourages more household borrowing, and the cycle will continue until it can’t:

The most explosive household debt: China

China is in a category of its own. And so the chart has a different scale. The household-debt-to-GDP ratio is still in the German neighborhood of just above 50%, but it has quintupled in the 12 years since the BIS data began in 2006. The idea that Chinese households are paying cash to sustain their housing bubble or to buy cars has become a bad joke: Chinese consumers have discovered debt, and they are eagerly turning into debt slaves:

Another Global Financial Crisis, with China at the Epicenter? Here’s my podcast, a 13-minute financial rollercoaster ride…. THE WOLF STREET REPORT

end
Sunday night:
Prime Minister of Pakistan Khan states that his country is ready for war with India. Financially, Pakistan is broke but both powers have nuclear weapons
(courtesy zerohedge)

Pakistan Is Ready For War: PM Khan

On Friday Pakistani Prime Minister Imran Khan said the country was ready for war and its army would respond if attacked by India or “any superpower” during a speech in southeast Pakistan’s Chachro town, according to Al Masdar News based on televised footage.

“If someone, if it is India or any superpower, wishes to enslave the Pakistani nation, I want to make it clear that my nation and I will fight until the last breath to save our independence,” he said. “Keep in mind; you will receive a befitting response from here.”

Following repeat Indian accusations that Pakistani actively harbors terrorists which have recently struck Indian troops and police  such as a recent Jaish-e-Mohammed (JeM) Feb. 14 suicide bomb attack which killed 40 in the Indian-controlled part of the disputed Kashmir region, resulting in India sending fighter jets into Pakistan for the first time since the 1970s, leading to current tensions — Khan underscored that his policy has been to defeat all terrorist militias anywhere in Pakistan.

“Unfortunately, this policy was not implemented in the recent past but after we came to power, we decided to implement the National Action Plan,” said Khan.

“Army and nation are ready for war,” said Khan during a Friday speech. 

He vowed that “in case of any misadventure by India, the armed forces and people of Pakistan are fully prepared to respond.”

Despite Khan’s bellicose rhetoric on Friday, both nuclear armed nations appear to have walked back from the brink, also amidst continued diplomatic interventions by Russia and China who have sought to calm tensions and facilitate negotiations.

Pakistan is currently under international pressure to demonstrate that it will not tolerate the presence of Jaish-e-Mohammed or any other terror group on territory under its administration.

According to a New Indian Express report:

Pakistan authorities on Thursday sealed the Lahore headquarters of Mumbai attack mastermind Hafiz Saeed-led Jamaat-ud-Dawa (JuD) and its charity wing Falah-i-Insaniat Foundation (FIF) and detained over 120 suspected militants as part of an ongoing crackdown on banned groups.

The confiscation of properties of JuD and FIF had come after Pakistan formally placed them in the list of banned organizations on Tuesday.

But this will certainly not satisfy India, which has maintained the right to conduct counter-terror exercises even in disputed border regions, which led to the latest round of ratcheting tensions in the first place.

END
Socialism at its finest:  Finland’s government falls after attempts to reduce healthcare spending fails.
(courtesy Reuters/)
and special thanks to Robert H for sending this to us:

Finland’s government falls after attempts to reduce healthcare spending fail

Posted 

Finland’s coalition government resigned on Friday a month ahead of a general election, saying it could not deliver on a healthcare reform package that is widely seen as crucial to securing long-term government finances.

Key points:

  • Prime Minister Juha Sipila said he would resign if the reforms weren’t carried
  • Demographic pressures have reduced Finland’s capacity to pay for healthcare
  • Finland heads to the polls on April 14

Healthcare systems across much of the developed world have come under increasing stress in recent years as treatment costs soar and people live longer, meaning fewer workers are supporting more pensioners.

Nordic countries, where comprehensive welfare is the cornerstone of the social model, have been among the most affected.

But reform has been controversial and, in Finland, plans to cut costs and boost efficiency have stalled for years.

“The picture I’ve got over the last few days from parliament forces me to draw conclusions. There is no way ahead. I am hugely disappointed,” Centre Party Prime Minister Juha Sipila told reporters at a news conference.

“We need reforms, there is no other way for Finland to succeed.”

Parliament’s constitutional committee said the reform package was unconstitutional and required significant changes the government did not have time to implement before the scheduled elections.

President Sauli Niinisto accepted Mr Sipila’s resignation but asked his government of his Centre party and the National Coalition Party to continue in a caretaker capacity until a new cabinet was appointed.

“My government works on a ‘result or out’ principle… one has to carry responsibility in politics,” Mr Sipila said.

He added it was his personal decision to resign.

The government had aimed to dramatically slow the increase in healthcare spending over the next decade, reducing the budget to €18.3 billion euros ($29.2 billion) in 2029 against an estimate of €21.3 billion.

Demographic pressures prompt social welfare cuts

The reforms expected to generate savings by creating 18 new regions to organise healthcare services instead of the 200 entities that are currently responsible.

Critics said the scale of the projected savings was unrealistic.

Other Nordic countries have also grappled with the need to cut costs.

Sweden is to gradually raise its retirement age and has opened up parts of the healthcare system to the private sector in a bid to boost efficiency.

Denmark will gradually increase the retirement age to 73 — the highest in the world — while cutting taxes and unemployment benefits to encourage people to work more.

The problem has been particularly acute in Finland where the financial crisis of 2008-9 magnified the effects of demographic changes such as a rapidly declining birth rate.

Several Finnish governments have tried to push through healthcare reform in different forms over the past 12 years, and all have failed.

Mr Sipila had previously said he would dissolve his centre-right coalition government if it failed to push through its healthcare and local government reform.

With the election so close, analysts said the Prime Minister’s resignation would have a minor effect.

“Since elections were already set for 14 April, the resignation of the government is not a big deal at all at this point. Still, it does create some ugly headlines,” Nordea’s chief analyst Jan von Gerich wrote on Twitter.

The latest poll by national broadcaster Yleisradio (YLE) puts the Social Democrats on 21.3 percent ahead of the National Coalition Party on 16.2 percent and the Centre on 14.1 percent.

In the 2015 general election Mr Sipila’s Centre party topped the poll with 21.2 percent of the vote.

At 9.5 percent of GDP, Finland ranked ninth among EU countries in terms of how much it spent on healthcare in 2016, relative to the size of its economy, according to Eurostat figures.

Spending has declined over recent years as a result of sluggish growth.

France topped the rankings at 11.5 percent of GDP with Germany second and Sweden third. Denmark was fifth.

end

Economists have now cut global growth to just 2.1% down from 4.% in the middle of last year.

(courtesy zerohedge)

 

Economists Cut Global Growth Forecast In Half, Admit Slowdown “Has Taken Us By Surprise”

This is probably the last chart that Mario Draghi wants to see.

Bloomberg  economics’ global GDP tracker has been downgraded to its slowest pace since the financial crisis, with world economic growth slumping to 2.1% on a quarterly basis. That’s down from 4% in the middle of last year.

GDP

And while there’s a chance that a US-China trade deal, the Fed’s “pause”, and a fading of the pressures plaguing Europe might stave off a global recession, Bloomberg economists Dan Hanson and Tom Orlik said the risks appear to be tilted toward the downside. “The risk is that the downward momentum will be self-sustaining.”

“The cyclical upswing that took hold of the global economy in mid-2017 was never going to last. Even so, the extent of the slowdown since late last year has surprised many economists, including us.”

To be sure, the economists aren’t the only ones lowering their outlook on global growth. Last week, the OECD joined the IMF in slashing its 2019 growth forecast, cutting its projection for aggregate global growth to just 1%, just over half of its previous outlook of 1.8%.

While Draghi’s gloomy outlook and decision to push back the timeline for ECB rate cuts last week sent a shock through markets, some ECB officials are apparently still desperately trying to reassure the world that everything is going to be just fine (despite a dearth of economic data implying the opposite).

Executive Board member Benoit Coeure said in an interview with Italian newspaper Corriere della Sera published Monday that “we are still seeing robust economic growth, though it’s less strong than before.”

“It will take longer for inflation to reach our objective, but it will get there. We are reacting to the developments we have seen so far.”

And although Jerome Powell said during an interview with 60 minutes last night that the US economy is “in a good place”, a raft of economic data, including Friday’s shockingly disappointing jobs report, would suggest otherwise.

The extent of the slowdown in recent months has taken many economists by surprise. But as more central banks opt to retreat into the safety of stimulus, or at least back off their hawkish rhetoric, we’ll see if disaster can be averted once again.

7  OIL ISSUES

Norway’s sovereign wealth fund plans to sell shares of its pure play exploration companies.  It will hold onto the biggest integrated porducers. It is worried what will happen once oil is depleted form its reserves.

(courtesy zerohedge)

Norway’s $1 Trillion Sovereign Wealth Fund Is Dumping Oil Stocks

The $1 trillion sovereign wealth fund of Europe’s biggest energy producer is hedging against a scenario where oil prices never return to their levels from 2014.

In a statement released Friday, the Norwegian sovereign wealth fund, which derives its income from the country’s oil and gas revenues, said it planned to sell shares of pure-play exploration companies, while holding on to shares of the biggest integrated producers. The Norwegian government approved the plan on Friday after a year of deliberation.

Norway

It calls for shares of 134 companies classified as exploration and production companies to be removed from the FTSE Russell. Shares of bigger oil firms, like Royal Dutch Shell and Exxon Mobil, will remain.

“The objective is to reduce the vulnerability of our common wealth to a permanent oil price decline,” Finance Minister Siv Jensen said in a statement. “Hence, it is more accurate to sell companies which explore and produce oil and gas, rather than selling a broadly diversified energy sector.”

Ironically, the proposal was hailed by climate activists in 2017 as a sign that an increasingly environmentally conscious Norway was looking beyond the carbon-based energy industry.

News that the plan had finally been approved sent shares of energy companies reeling…

Oil

8. EMERGING MARKETS

 

Venezuela

Blackout reaches 4 days on Sunday and day 5 today: and there are reports of dozens of deaths..when they will get this lunatic Maduro out of office.

(courtesy zero hedge)

Dozens Reported Dead In Venezuela After Mass Blackout Reaches Four Days

Much of Venezuela is still in the dark — now four days running  after the worst blackout on modern record in Latin America enveloped the country last Thursday evening. And as of Saturday, Reuters reported at least 17 deaths at hospitals across the countryattributable to the power outage, given many hospitals are now for days completely reliant on back-up generators to keep life saving ventilators and other medical devices going. Other reports have claimed multiple dozens of deaths across the country, especially in hospital neonatal units.

Embattled socialist president Nicolas Maduro has continued to blame the crisis on an act of “sabotage” by the United States at the Guri hydroelectric dam, for which he’s mobilized troops toprotect the national electricity system for the duration of the power outage. However, most analysts agree the electrical grid mass failure is the result of generally failing infrastructure after years of underinvestment and neglect

 

Lights off across Caracas, photo taken on March 9, via AFP

Following claims made through state TV social media of an “electricity war” being waged by the US and the Venezuelan foreign-backed opposition, Maduro stated on Twitter Sunday: “The national electrical system has been subject to multiple cyberattacks,” and he added, “However, we are making huge efforts to restore stable and definitive supply in the coming hours.”

Over a weekend in which most major cities and towns remained in darkness and without internet, problems compounded as Venezuela’s already aging and mismanaged infrastructure continues to collapse in a domino effect of crises precipitated by the electrical grid mass failure, including endangerment to hospital patients on ventilators and other medical devices, shuttered businesses, and cash-only transactions, which remains difficult given the essentially worthless value of the local bolivar.

Nicolás Maduro

@NicolasMaduro

El Sistema Eléctrico Nacional ha sido objeto de múltiples ataques cibernéticos que ocasionaron su caída y han impedido los intentos de reconexión nacional. Sin embargo, hacemos grandes esfuerzos para, en las próximas horas, restaurar el suministro de forma estable y definitiva.

Already amidst hyperinflationary collapse and worsening public services, Venezuelans are being forced to throw away rotting food and forgo normal communications and transport.

Meanwhile opposition leader Juan Guaido on Saturday called for mass protests to be held throughout the weekend in Caracas, which were also met with large counter-protests by Maduro supporters as the political situation is now linked to the rapidly failing public infrastructure.

What’s being described as a “second outage” which hit Saturday as power in some locations was struggling to come back online was reportedly caused by an explosion at a power station in Bolivar state:

In another blow to Venezuela’s infrastructure, an explosion occurred at a power station in the country’s Bolivar state on Saturday, according to local media. Video posted on social media showed fire and smoke billowing from the site. Venezuelan authorities have not commented.

Netblocks, a non-government group based in Europe that monitors internet censorship, said on Saturday that the second outage had knocked out almost all of Venezuela’s telecommunications infrastructure. — Associated Press

Embedded video

VPItv

@VPITV

11 PM Estado Protección Civil reporta un incendio en los alrededores de la subestación Los Farallones en Ciudad Bolívar Venezuela.

Reuters summarized the steadily worsening situation as of Sunday:

Food rotted in refrigerators, people walked for miles to work with the Caracas subway down, and relatives abroad anxiously waited for updates from family members with telephone and internet signals intermittent.

“What can you do without electricity?” said Leonel Gutierrez, a 47-year-old systems technician, as he carried his six-month-old daughter on his way to buy groceries. “The food we have has gone bad.”

Lines formed outside the few Caracas gas stations with open pumps, while many motorists stopped along the sides of highways to use their mobile phones in the few areas of the city with signal.

Basic transactions even among those able to pay remains a problem after power began returning to parts of Caracas and other cities on Friday, but went down again during the day Saturday.

Reuters summarizes further:

Some bakeries, supermarkets and restaurants were open and running on backup generators, according to Reuters witnesses. Many were asking customers to pay in U.S. dollar bills, since debit card payment systems were not working reliably and local bolivar notes have been scarce for years.

“Customers are buying drinks, batteries and cookies, but we are out of water,” said Belgica Zepeda, a salesperson at a Caracas pharmacy.

Worse, an independent organization called Doctors for Health told Reuters that 17 hospital patients across the country have died as a result electricity outages at hospitals, and the unreliability of back-up generators.

One unconfirmed local report said at least 80 neonatal patients died at University Hospital in Maracaibo, Zulia, over the course of the blackout.

View image on TwitterView image on Twitter

Sotiri Dimpinoudis@sotiridi

: Maduro also claims and blames that the is behind the explosion, at the Sidor electrical Substation near City in Bolivar state in .

According to prior AP reporting, the blackout struck during Thursday evening’s peak rush hour period, and after extending through the night Maduro reportedly ordered all schools and government locations closed. Businesses were further ordered closed in order allow work crews easy access to the failing power infrastructure.

Community food banks have begun to operate with the purpose of getting food into people’s hands before it spoils and store shelves:

Embedded video

Elyangelica González

@ElyangelicaNews

Este Domingo se sumaron más comercios a la iniciativa de entregar alimentos a los vecinos antes que se descompongan. Este local está ubicado en sector Belloso de Maracaibo, estado Zulia. Video: @Gerardtorresp

According to VOA news Venezuelan officials “said the hydroelectric station at the Guri Dam, one of the world’s largest, had been sabotaged, but offered no evidence.”

And predictably, US officials were quick to capitalize on the Venezuelans’ plight, with Secretary of State Mike Pompeo taking to Twitter to say at the end of last week: “Maduro’s policies bring nothing but darkness,” and “No food. No medicine. Now, no power. Next, no Maduro.”

Meanwhile, Sen. Marco Rubio remains busy promoting regime change while getting some basic facts horribly wrong…

View image on TwitterView image on Twitter

Jason Sparks@sparksjls

Oh my god.

Reuters noted that the only blackouts in Venezuela’s recent history that come close to the length and devastation of this current one were in 2013 and 2018. During the former 23 states endured a six-hour outage, while in the later eight states were hit with a 10-hour power outage.

The network monitoring organization NetBlocks says 96% of the entire country remains without internet access as of Sunday.

The current outage has impacted a record 23 out of 24 states and as the country heads into another work week, the situation remains bleak and unclear, especially as Reuters noted, “Electricity experts said that outage was most likely due to failures in the transmission system, and that the government lacks the equipment and staff to repair them.”

end
Day 5 out of the black as looters pillage supermarkets
(courtesy zerohedge)

Looters Pillage Venezuela Supermarkets As Crippling Blackout Hits Day Five

Looting and violence are rapidly on the rise as Venezuela enters its fifth day without power across most of the country though some reports suggest as much as 30% of power has returned to parts of the capital city Caracas.

The UK Daily Mail has published a series of shocking photographs showing the aftermath of mobs looting supermarkets in Caracas as things turn desperate. The already politically unstable Latin American country was plunged into darkness after last Thursday night all but one of 23 statessuffered mass blackouts.

 

Scene after looting in Caracas, via Reuters

As reports of approaching 20 or more deaths at hospitals attempting to operate with faulty back-up generators came in over the weekend, Reuters noted, “Electricity experts said that outage was most likely due to failures in the transmission system, and that the government lacks the equipment and staff to repair them.”

Embedded video

Resistance43v3r ⚔️@resist43v3r

The scene of looting in Baruta, Caracas earlier today. Security forces arrived in large numbers and eventually gained control of the situation there.

Reuters further described “already-scarce food rotting in shops, homes suffering for lack of water and cell phones without reception.”

And the Daily Mail reported “Pictures reveal that some supermarkets in the capital have been left ransacked by desperate residents as they struggle to find food.”

 

Looting in Caracas, via Reuters

Security personnel have been deployed throughout Caracas to prevent mass looting, though we can imagine that since reports of the water supply being impacted by the outage, people are simply reaching desperation and are attempting any way possible to endure the nightmare circumstances.

Photographs showed in some instances looters being piled into police trucks and vans — this as US-backed opposition leader Juan Guaido over the weekend called for nationwide anti-Maduro protests over the failing infrastructure. Most analysts agree the electrical grid mass failure is the result of generally failing infrastructure after years of underinvestment and neglect.

Ivan Alvarado@IvanAlvaradoE

People detained by security forces after looting broke out during an ongoing blackout are pictured in Caracas, Venezuela, March 10, 2019. REUTERS/Ivan Alvarado TPX IMAGES OF THE DAY

Guaido now says he’ll request the National Assembly to declare a “national emergency” on Monday in order to hasten the delivery of international aid into the country, an issue of contention given Maduro’s repeat condemnation of ‘unauthorized’ US aid attempting to reach the borders.

US-backed Guaido is askeing the National Assembly “to take immediate actions with respect to the necessary humanitarian aid.”  

 

Security forces detain looters in Caracas on Sunday, via Reuters.

But Maduro doubled down on his prior allegations that Venezuela was actually the victim of US “sabotage” and an “electricity war,” saying on Twitter Sunday: “The national electrical system has been subject to multiple cyberattacks,” and he added, “However, we are making huge efforts to restore stable and definitive supply in the coming hours.”

The country will enter its fifth consecutive day of power outages on Monday, which have also forced people to rummage through bins for food, queue to charge electronic devices using a solar panel and buy bread with 100-dollar bills after the country was hit by a fourth day of blackouts. — Daily Mail

Worse, an independent organization called Doctors for Health told Reuters that 17 hospital patients across the country have died as a result electricity outages at hospitals, and the unreliability of back-up generators.

 

Looters were arrested and loaded onto police vans in various neighborhoods across Caracas on Sunday, via Reuters.

And one unconfirmed and disputed local report said at least 80 neonatal patients died at University Hospital in Maracaibo, Zulia, over the course of the blackout. Though it remains difficult to assess or confirm such numbers, there’s near universal affirmation that the crisis has hit humanitarian disaster levels, as things like ventilators and life-saving devices at hospitals fail.

The Daily Mail reported:

No national data was available about the impact of the power outage, but an NGO said at least 15 patients with advanced kidney disease died after they stopped receiving dialysis treatments in darkened hospitals.

As of Sunday, businesses remained shut, hospitals struggled to operate, and public transport barely functioned.

The New York Times

@nytimes

Sporadic looting and spontaneous protests. Desperate patients begging doctors to be kept alive. Sunday was the 4th day since Venezuela’s power system went down. https://nyti.ms/2ERkNAe

Sunday was the fourth day since Venezuela’s power system went down, plunging most of the country, including Caracas, the capital, into darkness.

No End in Sight to Venezuela’s Blackout, Experts Warn

Four days after the country’s neglected power system went down, the government has pointed fingers but done little else to restore electricity.

nytimes.com

371 people are talking about this

Meanwhile the network monitoring organization NetBlocks said 96% of the entire country remained without internet access as of Sunday.

 

Caracas, image source: TASS

Caracas has attempted to communicate official government statements about the crisis through State TV social media accounts, but much of the population now remains isolated from the outside world.

Ivan Alvarado@IvanAlvaradoE

Detainees are seen on a truck after looting during an ongoing blackout in Caracas, Venezuela March 10, 2019. REUTERS/Carlos Garcia Rawlins TPX IMAGES OF THE DAY

Reports began to emerge Monday of lights slowly coming back on in parts of Caracas. According to Russia’s TASS news agency:

The power supply of the Venezuelan capital Caracas is restoring, TASS reported from the scene.

After dark it could be seen that a considerable part of the street lighting system had started operating, and there was light in some houses. Caracas residents also reported the renewal of the electric power supply.

For the most part Venezuelans have attempted to carry on with normal life despite the extreme circumstances.

A wedding goes on in the dark…

Embedded video

Sotiri Dimpinoudis@sotiridi

: Even in this situation in the blackout, normal life still continues in ! Here is a video of a newly wed couple getting married in a dark church. Video Credit: @ElyangelicaNews

Over the weekend US officials were quick to capitalize on the Venezuelans’ plight, with Secretary of State Mike Pompeo taking to Twitter to say at the end of last week: “Maduro’s policies bring nothing but darkness,” and “No food. No medicine. Now, no power. Next, no Maduro.”

end

Your early morning currency/gold and silver pricing/Asian and European bourse movements/ and interest rate settings MONDAY morning 7:00 AM….

Euro/USA 1.1243 UP .0013 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 GREEN 

 

 

 

 

 

 

USA/JAPAN YEN 111.20  UP .055 (Abe’s new negative interest rate (NIRP), a total DISASTER/NOW TARGETS INTEREST RATE AT .11% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL…

GBP/USA 1.3011    UP   0.0003  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.3417 UP .0007 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 ROSE by 13 basis points, trading now ABOVE the important 1.08 level  RISING to 1.1216 Last night Shanghai composite closed UP 57.13 POINTS OR 1.92%/

 

 

 

//Hang Sang CLOSED DOWN 274,88   POINTS OR 0.97% 

 

/AUSTRALIA CLOSED DOWN 0.38%/EUROPEAN BOURSES GREEN 

 

 

 

 

 

 

 

 

 

The NIKKEI: this MONDAY morning CLOSED UP 99.53 POINTS OR 0.47% 

 

 

 

 

 

 

 

 

Trading from Europe and Asia

1/EUROPE OPENED GREEN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 274,88 POINTS OR 0.97%

 

 

 

/SHANGHAI CLOSED UP 57.13 POINTS OR 1.92% 

 

 

 

 

 

 

Australia BOURSE CLOSED DOWN 38%

 

Nikkei (Japan) CLOSED UP 99.53 POINTS OR 0.47%

 

 

 

 

 

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1294.60

silver:$15.29

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

 

The 30 yr bond yield 3.04 UP 3  IN BASIS POINTS from FRIDAY night. (POLICY FED ERROR)/

USA dollar index early MONDAY morning: 96.37 UP 3 CENT(S) from  FRIDAY’s close.

This ends early morning numbers MONDAY MORNING

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And now your closing  MONDAY NUMBERS \12: 00 PM

 

Portuguese 10 year bond yield: 1.32% DOWN 3  in basis point(s) yield from FRIDAY/

JAPANESE BOND YIELD: -.03%  DOWN 0   BASIS POINTS from FRIDAY/JAPAN losing control of its yield curve/

 

 

SPANISH 10 YR BOND YIELD: 1.15% UP 10   IN basis point yield from FRIDAY

ITALIAN 10 YR BOND YIELD: 2.56 UP 6    POINTS in basis point yield from FRIDAY/

 

 

the Italian 10 yr bond yield is trading 141 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: FALLS  TO +.06%   IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.50% 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 MONDAY

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

Euro/USA 1.1234 UP   .0004 or 4 basis points

 

 

USA/Japan: 111.19 UP .049 OR YEN UP 5 basis points/

Great Britain/USA 1.3091 UP.0083( POUND UP 83  BASIS POINTS)

Canadian dollar UP 3 basis points to 1.3410

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY closed AT 6.7265    0N SHORE  (DOWN)

 

THE USA/YUAN OFFSHORE:  6.7345(  YUAN DOWN)

TURKISH LIRA:  5.4456

the 10 yr Japanese bond yield closed at -.03%

 

 

 

Your closing 10 yr USA bond yield DOWN 0 IN basis points from MONDAY at 2.64 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.03 DOWN 0  in basis points on the day /

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

Your closing USA dollar index, 97.28 DOWN 2 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 MONDAY: 12:00 PM 

London: CLOSED UP  24.53 OR 0.35%

German Dax : UP 67.36 POINTS OR .59%

Paris Cac CLOSED UP 27.83 POINTS OR  0.53%

Spain IBEX CLOSED UP 37.90 POINTS OR  0.42%

Italian MIB: CLOSED UP 143.56 POINTS OR 0.70%

 

 

 

 

WTI Oil price; 56.48 1:00 pm;

Brent Oil: 66.55 12:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    66.00  THE CROSS LOWER BY 0.34 ROUBLES/DOLLAR (ROUBLE HIGHER BY 34 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO +.07 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 :  56.81

 

 

BRENT :  66.63

USA 10 YR BOND YIELD: … 2.64.

 

 

 

 

 

 

USA 30 YR BOND YIELD: 3.03..

 

 

 

EURO/USA DOLLAR CROSS:  1.1243 ( up 14   BASIS POINTS)

USA/JAPANESE YEN:111.22 UP .080 (YEN DOWN 8  BASIS POINTS/..

 

.

 

USA DOLLAR INDEX: 97.18 DOWN  13 cent(s)/

The British pound at 4 pm: Great Britain Pound/USA:1.3139  UP 131 POINTS FROM YESTERDAY

the Turkish lira close: 5.4456

the Russian rouble 66.00   UP .34 Roubles against the uSA dollar.( DOWN 5 BASIS POINTS)

 

Canadian dollar:  1.3403 UP 8 BASIS pts

USA/CHINESE YUAN (CNY) :  6.7265  (ONSHORE)/

 

USA/CHINESE YUAN(CNH): 6.7320  (OFFSHORE)

German 10 yr bond yield at 5 pm: ,0.07%

 

The Dow closed UP 200.65 POINTS OR 0.79%

 

NASDAQ closed UP 149.92 POINTS OR 2.02%

 


VOLATILITY INDEX:  14.41 CLOSED DOWN 1.64 

 

LIBOR 3 MONTH DURATION: 2.597%//

 

 

 

FROM 2.600

 

 

 

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

Plane Crash Sparks Stock Buying-Panic That Ends Transports Longest Losing Streak In 47 Years

Was the appearance of Powell, Yellen, and Bernanke the reason why the markets went panic-bid today? Seems like it should be the opposite signal?

After a brief dip on Friday, China went full bulltard once again – despite a dramatic slowdown in total social financing growth – with CHINEXT up a stunning 4.4%!!

 

European markets refused to follow China’s lead BUT went bid after US cash markets opened…

 

US Markets are best visualized from the futures market as the divergence between The Dow (down on Boeing) and the S&P/Nasdaq was clear overnight until the cash open when everything went panic bid until the EU close…

 

Nasdaq was the day’s big winner on the cash side… Trannies surged on the day – the first rally day in the last 12 days and breaking the longest losing streak since 1972…

 

Boeing’s plunge (737 max crash) was offset somewhat by Apple’s surge (BofA updgrade) to rescue the Dow (best gain of the day)…AAPL added 40 points to the Dow, BA cut 175pts.

 

Dow futures pushed around 450 points off its intraday lows!!!

 

S&P broke back above its 200DMA (but remains well below the 2800ish level) and Nasdaq also broke back above its 200DMA

 

FANG Stocks drove the surge in Nasdaq (and AAPL)…

 

Buyback-related stocks soared today – erasing Friday’s losses…

 

And yet another short-squeeze…

 

There has been a lot of hand-wringing over the underperformance of transports and semis in the last few weeks. Today that was all dismissed as both industries soared (despite another Boeing crash and no semi-related catalysts)…

 

However, not all is awesome. As Bloomberg notes, if today’s U.S. stock rebound — after the worst week of 2019 — is to continue, it has to overcome a roadblock of negative momentum, not to mention the wall of resistance from 2,800-2,815.

 

And just like that, VIX was crushed and credit spreads collapsed…

 

Stocks and bonds completely decoupled at the cash open…

 

Treasury yields rose very modestly…

 

30Y remains above 3.00% but is coiling…

 

The Dollar Index (DXY) faded for the second day in a row but held above the key 97.00 handle…

 

Cable rebounded – on no good news (lawmakers in the U.K. will vote Tuesday on PM May’s Brexit deal for a second time in two months before the Mar 29 deadline for exiting the EU) – after its worst losing streak since May…

 

While the dollar has dropped the last two days, yuan has been flat…

 

Cryptos slid from Saturday highs…

 

Despite dollar weakness, PMs were sold as copper and crude were bid…

 

WTI tagged $57.00 0twice and failed and Gold broke below $1300 early and never looked back…

 

Finally, spot the difference…

(hint: it’s not the economic outlook or bonds!!)

The official narrative for today’s gains is as follows: “U.S. stocks rebounded from the worst week of the year as chipmakers rallied on deal news and the latest retail-sales data boosted confidence that the economy isn’t headed for a downturn..”

To which we respond via David Rosenberg (and note that this was still the biggest 2mo drop in retail sales in a decade)…

David Rosenberg@EconguyRosie

What a retail sales report! 4 months in a row of decline in furniture/home furnishings; 5 months of decline in electronics/appliance sales; clothing at a 10-month low; gas sales at a 15-month low; electronics at an 18-month low; furniture at a 20-month low. All shutdown related?

108 people are talking about this

 

MARKET TRADING/

 

 

ii)Market data/

Retail sales rebounded a bit but only after a huge downward revision. Thus if we take the last two months data we witness the biggest 2 month drop in retail sales in a decade.

 

Retail Sales Suffer Biggest 2-Month Drop In A Decade Despite Jan Rebound

After December’s narrative-destroying-“outlier” collapse in retail sales, January saw a modest rebound (+0.2% MoM) but against a downwardly revised December (from -1.2% to -1.6% MoM).

 

Under the headline data, things improved more with core retail sales up 1.2% MoM in January (but again with a dramatic downward revision in Dec).

The Control Group – which fits into the GDP data – rebounded +1.1% MoM but saw a huge downward revision in December to -2.3% MoM…the weakest since Jan 2000! But rebounded most since Feb 2014…

Non-store retail sales soared in January…

Sporting Goods and building materials rose by the most…

  • Sporting goods, hobby, musical and book stores: +4.8%
  • Building material and garden equipment: +3.3%
  • Food and beverage stores 1.1%
  • Health and personal care stores: 1.6%
  • General Merchandise stores: 0.8%
  • Miscellaneous store retailers: 0.1%
  • Nonstore (Online) retailers: 2.6%
  • Food service and drinking places: 0.7%

But not everything was rosy with drops in the following sectors:

  • Motor Vehicles and parts dealers -2.4%
  • Furniture and home furnishings -1.2%
  • Electronics and appliance stores -0.3%
  • Clothing and accessories stores -1.3%
  • Gasoline Stations -2.0%

But the headline point is that the last two months have seen the biggest decline since March 2009…

Seems like this rebound print won’t help the GDP expectations due to the downward revisions.

END
THIS IS A HUGE BLOW TO TRUMP:  Atlanta Fed now sees first quarter GDP tumbling to just .2%
(courtesy zerohedge)

GDP Crash: Atlanta Fed Sees Q1 GDP Tumbling To Just 0.2%

While the market was delighted two weeks ago to see a delayed Q4 GDP print of 2.6%, which came in well above the expected 2.2% consensus number, we warned that “while Q4 was clearly a stronger than expected print, the real question is what happens in Q1, when most banks and nowcasts expect GDP to print below 1%, in some cases concerningly so.”

Moments ago we got another confirmation of this, when following the latest retail sales report which saw a dramatic cut to December retail sales even as January surprised modestly to the upside, the Atlanta Fed slashed its Q1 GDP nowcast, and after rebounding modestly from 0.3% to 0.5% a week ago, it has once again slumped, and is now at the lowest recorded level, and just 0.2% away from economic contraction.

This is how the AtlantaFed justified its latest Q1 GDP cut, which as of March 11 was just 0.2 percent, down from 0.5 percent on March 8: “After this morning’s retail sales report from the U.S. Census Bureau, the nowcast of first-quarter real personal consumption expenditures growth declined from 1.5 percent to 1.0 percent.”

It appears that the now-certain Q1 earnings recession won’t be in isolation, with the broader US economy also on the verge of contracting, if only for just one quarter. The question then becomes whether China’s ongoing reflation attempts will be successful (although the February total credit injection was a major disappointment), and lead to a rebound in US growth in the second quarter. If not, what was expected to become the longest US expansion in history in June 2019, will be prematurely terminated by a technical recession just as Donald Trump was set to make a new economic record.

iii)USA ECONOMIC/GENERAL STORIES

Boeing Down 13%, Biggest Drop Since 2001, After Ethiopian Air Crash 

Update 3: The flight attendants union has asked the FAA to investigate the Boeing 737 MAX 8, saying it’s important to address these safety concerns after the second crash in 5 months.

  • *FLIGHT ATTENDANTS UNION ASKS FAA TO INVESTIGATE BOEING 737 MAX
  • *ASSN OF FLIGHT ATTENDANTS SEEKS ACTION AFTER SECOND MAX CRASH
  • *AFA: VITAL TO ADDRESS CREW, PASSENGER CONCERNS AFTER MAX CRASH

* * *

Update 2: Boeing fell to its lows of the session after the open, with shares of the aerospace company and Dow component down 13%, its largest intraday drop since 2001. Concerns about the safety of Boeing’s 737 MAX 8 are weighing on shares of airlines and Boeing suppliers more broadly as well.

Three

Boeing has almost single-handedly dragged the Dow deep into the red, with Dow futures down 270 points while the S&P and Nasdaq remained in positive territory.

Dow

* * *

Update: Indonesia’s Transport Ministry will order the temporary grounding of all 737s while it carries out safety inspections, Reuters reported.

Vincent Lee

@Rover829

Reuters: ‘s transport ministry says to temporarily ground 737 MAX 8 aircraft while it undertakes inspections

In a sign that more details about the crash could soon be known, Ethiopian State TV says it has recovered both ‘black boxes’ from flight ET302, which contains important data that could shed some light on what caused the crash. Included in the data is a cockpit recording which could shed some light on what pilots were saying and doing in the plane’s final moments.

Vincent Lee

@Rover829

Reuters: State TV says black box from flight that crashed Sunday has been recovered

This could be the first major breakthrough in the investigation, and could reveal whether reported “abrupt dives” due to faults in the plane’s flight-monitoring system, which was suspected of causing the Lion Air crash, were to blame.

As of 8:50 am ET, Boeing shares had dropped 11% in premarket to their lowest level of the day, dragging Dow futures down with them.

Chart

With Boeing headed for its biggest drop in at least eleven years, Dow futures are down 200 points while the S&P and Nasdaq look set for a higher open.

Dow

* * *

Boeing ADRs traded on Germany’s Tradegate exchange in Stuttgart slumped more than 9% early Monday as Chinese and Ethiopian airlines grounded their fleets of Boeing 737 MAX 8s as experts question the plane’s safety after an unprecedented series of crashes. Meanwhile, Boeing opened more than 10% lower in the US premarket, weighing heavily on Dow futures, which were off by triple digits.

Boeing

While some airlines opted not to ground their fleets following Sunday’s devastating crash, where an Ethiopian Airlines flight dropped out of the sky six minutes after takeoff, killing everyone on board – including nearly 160 passengers and crew (including 8 Americans) – the fact that the Ethiopian Air crash happened so soon after a similar crash involving a 737 operated by Indonesia’s Lion Air has raised questions about the model’s safety.

On Monday (local time, late Sunday in New York), China’s Civil Aviation Administration of China said all Chinese airlines must suspend their use of the 737 MAX 8 by 10 am London Time.

Boeing

The CAAC said flights would not resume until Boeing had proven that no design flaw contributed to the crashes. China’s regulator said it would notify airlines as to when flights could resume, after it has heard back from Boeing and the FAA.

“Given that two accidents both involved newly delivered Boeing 737-8 planes and happened during take-off phase, they have some degree of similarity,” the CAAC said. It added that it has a “zero tolerance” policy for safety risks.

Chinese airlines have a total of 96 737 MAX 8 jets in service, the state company regulator said on Weibo, including Air China, China Eastern Airlines, China Southern Airlines and Hainan Airlines.

Meanwhile, after initially insisting that its fleet of 737s would remain in the air, Ethiopian Airlines backtracked on Monday and grounded its 737s until further notice as an “extra safety precaution.” The investigation into Sunday’s crash is just getting started, while the probe into the Lion Air crash has yet to produce a conclusive finding.

Cayman Airlines, the British overseas carrier, said it would ground its 737s, though most of the major airlines around the world have not grounded their planes.

Here’s a breakdown of 737 orders/deliveries showing which airlines are most reliant on the narrow-body jet (No. 1 is US-based Southwest), courtesy of Bloomberg:

Boeing

Flight ET302, the Ethiopian Airlines flight that crashed on Sunday, was the second 737 MAX 8 to suddenly crash, killing everybody on board, within five months. In late October, the crew of a Lion Air flight reported technical problems with the plane before it suddenly dropped into the Java Sea off the coast of Indonesia. The two crashes were eerily similar, in that both occurred just minutes after taking off.

The 737 line is Boeing’s cash cow, and the aerospace company has roughly 5,000 737s on back order – so making material redesigns for safety purposes could be hugely problematic for the company’s production, and possibly lead to a flurry of cancelled orders. Already, 350 of the planes are in service around the world.

Basket case Illinois is still short after a proposed income tax hike

(courtesy Digounguy/IllinoisPolicy.Org)

Illinois’ Progressive Income Tax Proposal Falls $2 Billion Short Of Revenue Estimates

Submitted by Orphe Divounguy of IllinoisPolicy.org

Progressive income tax rates proposed Thursday by Illinois Gov. J.B. Pritzker won’t hit his promised $3.4 billion in revenue. Analysis by the Illinois Policy Institute reveals revenue from these proposed rates would bring in only $1.4 billion, according to dynamic estimates, or $2.4 billion, according to static estimates.

This falls far short of closing the budget gap, much less financing billions in new spending. With $14 to $19 billion in spending promises, Pritzker’s proposed rates will nearly guarantee future tax hikes on Illinois’ middle class.

Enacting a progressive income tax with these rates would also cost Illinois 30,400 jobs and $11.2 billion in lost economic activity.

Illinois Policy Institute analysis of Pritzker’s plan shows:  

  • Revenue from these proposed rates would bring in only $1.4 billion, according to dynamic estimates, or $2.4 billion, according to static estimates. Neither situation closes the budget deficit nor allows for billions in new spending.
  • Pritzker would need to raise between $14.3 and $19.4 billion more through a progressive income tax hike to fully implement his spending promises by fiscal year 2022.
  • Nearly a third of small businesses would suffer under this tax. In 2017, small businesses generated 70 percent of all new jobs in Illinois.
  • With this new tax structure, including the corporate income tax and personal property replacement tax, Illinois corporate rate would become 10.45 percent, the second highest in the nation.
  • In his February budget address, Gov. Pritzker said his proposed rates would be more competitive than Iowa’s tax rates, who recently voted to move its top rate to 6.5 percent. Pritzker went back on his promise with a top proposed rate is 7.95 percent on net income over $1 million.

Illinoisans shouldn’t be fooled by this false promise. There is no possible way Gov. Pritzker can fulfill all of his spending promises, pay down billions in debt and still cut taxes for 97 percent of Illinoisans, as his proposal states. He can’t even raise the amount of revenue he claims this proposal does.

Getting rid of Illinois’ constitutionally mandated flat income tax would serve up a blank check for lawmakers to hike taxes on everyone. The governor has already tricked Illinoisans once by taking back his promise of more competitive rates than neighboring states like Iowa and Wisconsin. There is nothing that prevents Pritzker or other lawmakers from changing the rates once the constitution allows a progressive income tax. If he were serious about protecting the middle class, these rates would be written into a constitutional amendment.

Instead of looking out for the state’s most vulnerable, Pritzker’s proposed rates would crush nearly a third of Illinois’ small businesses, who are the lifeblood of our economy. Research shows that progressive income tax structures have no positive effects on income inequality. The only way to protect taxpayers for the long term is through structural reforms to our state’s largest cost drivers: pensions and government worker health insurance.

end
As you know China has stopped bringing into its country garbage of the USA.  Now we witness a pollution panic striking major uSA cities as they face consequences of that decision.  The USA is trying to burn the plastic but this is releasing huge amount of toxins into the atmosphere.
(courtesy zerohedge)

“Pollution Panic” Strikes US Cities As Officials Face Consequences of China’s Waste Blockade

Beginning in Feb 2017, as part of China’s broader “National Sword” campaign, the largest buyer of recyclables from the US, banned 24 types of solid waste from being imported and placed tougher restrictions on the ones it continues to accept.

The move left the recycling industry and authorities in a number of US cities struggling with the disposal of plastic, paper and glass trash, and as RT reports, US officials say it creates pollution, negatively impacting the health of residents.

Communities around trash incinerators have experienced elevated levels of certain cancers,” environmental activist Mike Ewall told Ruptly video agency in Chester, outside Philadelphia, where a large incinerator is located.

It burns around 200 tons of recyclable materials every day.

Ewall noted that burning trash releases 28 times more dioxin pollution” than burning coal, emitting “the most toxic chemicals known to science,” like mercury and lead.

The residents complain that the incinerator affects house prices as well.

It destroyed the sense of community, because people that were here moved. You cannot sell the house. It has destroyed the foundations,” local activist Zulene Mayfield told Ruptly.

Finally, some have suggested Beijing’s move to crack down on waste imports may be part of the ongoing trade war with Washington:

“I have to take off my hat to China: it’s a very clever trade move,” Jeffrey Tucker, the editorial director at the American Institute for Economic Research, told RT, adding that Beijing “would never admit that this is part of the trade war.”

For some context, U.S. plastic waste exports to China plummeted by 92 percent between the first part of 2017 and the first part of 2018.

Infographic: China Won't Accept U.S. Plastic Waste. Now What? | Statista

You will find more infographics at Statista

“It’s a way of putting a huge tariff or a blockade on the worst of American exports to China. If it is a tactic, it’s a brilliant one.”

end

SWAMP STORIES

Two major points of interest in this story:

  1. Graham is going after the FISA abuse as the FBI used undocumented evidence in the probe of Carter Page
  2. Graham is going after the genesis: how this whole episode started i.e. the use of Stefan Halper infiltrating the Trump campaign. Halper was a paid informant of the FBI.

(zerohedge)

.

Lindsey Graham Doubles Down On FISA Abuse Probe As House Democrats Fire Up Post-Mueller Investigations

Days after the Democrat-controlled House Judiciary Committee fired off 81 document requests for their post-Mueller investigations (in anticipation of a ‘disappointing’ Mueller report) – Senate Judiciary Chairman Lindsey Graham has revived his committee’s probe into potential surveillance abuse by the FBI. 

In a Thursday letter to Attorney General William Barr – just three weeks on the job, Graham asked for all FBI and DOJ documents which would explain what steps were taken to verify the Steele dossier before it was used by the FBI to obtain a surveillance warrant on a Trump campaign staffer.

The FBI relied heavily on Steele’s report to obtain four Foreign Intelligence Surveillance Act (FISA) warrants against former Trump campaign adviser Carter Page.

Republicans investigated whether the FBI misled the FISA court by relying on the dossier even though its allegations about Page were unverified. They also asserted the FBI failed to tell surveillance court judges that Steele was working on behalf of the DNC and Clinton campaign on an investigation of Donald Trump. –Daily Caller

Graham also notified Barr that he is investigating the FBI’s original decision making process behind opening up investigations of Trump campaign associates in 2016 – including, we assume, the decision to infiltrate the campaign using Stefan Halper – a former Oxford University professor and longtime intelligence asset who was paid over $1 million by the Obama Department of Defense between 2012 and 2018, with nearly half of it surrounding the 2016 US election.

Furthermore, Graham has requested:

  • All documents and communications originally shared with the Gang of Eight in May 2018 related to the Russia investigation.
  • All “FD-302” forms for former DOJ #4 Bruce Ohr and any other individual at the Department, the FBI, or elsewhere in the federal government who received information from individuals outside the Department or the FBI that was used in the Carter Page FISA applications.

A “302” serves to “report or summarize” witness interviews involved in FBI investigations – while Ohr’s testimony was recently found to have contradicted that of Deputy Attorney General Rod Rosenstein and Fusion GPS founder Glenn Simpson.

Read Graham’s letter below:   ZEROHEDGE

end

Bruce Ohr’s testimony has finally been released and it totally contradicts both Rosenstein and Simpson..someone  is lying..either Ohr is telling the truth or Rosenstein/Simpson are lying..my money is on the latter two

(courtesy Sara Carter)

Bruce Ohr’s Testimony Contradicts Testimony Provided By Rosenstein And Simpson

Authored by Sara Carter,

Department of Justice senior official Bruce Ohr’s testimony contradicts testimony given by other senior government officials and key witnesses who testified before Congress regarding the FBI’s investigation into President Trump’s 2016 campaign and alleged collusion with the Russian government, according to the full transcripts released Friday.

Ohr’s 268-page testimony, released by Republican member of the House Judiciary Committee Georgia Rep. Doug Collins, reveals inconsistency and contradiction in testimony given by Glenn Simpson, founder of embattled research firm Fusion GPS and Deputy Attorney General Rod Rosenstein, who is set to leave his post sometime this month.

It also reveals that many questions are still left unanswered.

The Contradictions and The Revelations 

1. Glenn Simpson suggests in his testimony to the Senate that he never spoke to anyone at the FBI about Christopher Steele, the former British spy he hired to investigate the Trump campaign during the election. However, Ohr suggests otherwisetelling former Rep.Trey Gowdy under questioning “As I recall, and this is after checking with my notes, Mr. Simpson and I spoke in August of 2016. I met with him, and he provided some information on possible intermediaries between the Russian government and the Trump campaign.”

2. In another instance, Simpson’s testimony also contradicts notes taken by Ohr after a meeting they had in December, 2016. Unverified allegations were decimated among the media that the Trump campaign had a computer server that was linked to a Russian bank in Moscow: Alpha Bank. Simpson suggested to the Senate that he knew very little about the Trump -Alpha Bank server story and couldn’t provide information. But Bruce Ohr’s own handwritten notes state that when he met with Simpson in December 2016, Simpson was concerned over the Alpha Bank story in the New York Times. “The New York Times story on Oct. 31 downplaying the connection between Alfa servers and the Trump campaign was incorrect. There was communication and it wasn’t spam,” stated Ohr’s notes. This suggests that Simpson was well aware of the story, which was believed by congressional investigators to have started from his research firm.

3. Ohr testified to lawmakers that Simpson provided information to federal officials that was false regarding Cleta Mitchell, a well-known Republican campaign finance lawyer, and information regarding the National Rifle Association. Sean Davis, with the Federalist pointed this out in a tweet today. Read one of those stories here.

Sean Davis

@seanmdav

Bruce Ohr testified that Glenn Simpson of Fusion GPS provided to federal officials information we know to be false regarding Cleta Mitchell, a Republican campaign finance attorney, and the NRA. Giving false statements to federal officials is a crime under 18 U.S.C. 1001.

4. Deputy Attorney General Rod Rosenstein would not answer questions to lawmakers during testimony about when he learned that Ohr’s wife, Nellie Ohr, was working for Fusion GPS. Just check this out from Rep. Matt Gaetz’s interview with Judge Jeanine on Fox News.

“Rod Rosenstein won’t tell us when he first learned that Nellie Ohr was working for Fusion GPS,” said Gaetz, in August, 2018.

“So I want to know from Bruce Ohr, when did he tell his colleagues at the Department of Justice that in violation of law that required him to disclose his wife’s occupation his sources of income. He did not do that. So when did all of the other people at the Department of Justice find this out because Rod Rosenstein, I’ve asked him twice in open hearing and he will not give an answer. I think there’s a real smoking gun there.”

However, in Ohr’s testimony he says he told the FBI about his wife’s role at Fusion GPS but only divulged his role to one person at the DOJ: Rosenstein. At the time, Rosenstein was overseeing the Trump-Russia probe, and had taken the information from Ohr and gave it to the FBI. Just read The Hill’s John Solomon full story here for the full background on Ohr’s testimony. I highlighted an important date below: remember Rosenstein wouldn’t answer lawmakers questions as to when he knew about Nellie Ohr. It also appears he failed to tell lawmakers about the information he delivered to the FBI.

Ohr stated in his testimony: “What I had said, I think, to Mr. Rosenstein in October of 2017 was that my wife was working for Fusion GPS… The dossier, as I understand it, is the collection of reports that Chris Steele has prepared for Fusion GPS.”

Ohr added: “My wife had separately done research on certain Russian people and companies or whatever that she had provided to Fusion GPS…But I don’t believe her information is reflected in the Chris Steele reports. They were two different chunks of information heading into Fusion GPS.”

5. Ohr also told lawmakers in his testimony that the former British spy, Christopher Steele was being paid by the FBI at the same time he was getting paid by the Hillary Clinton campaign and the DNCHowever, there was another player paying Steele and it was a Russian oligarch named Oleg Deripaska. Deripaska, a tycoon connected to Russian President Vladimir Putin, had well known animus toward his former friend Paul Manafort.

Rep. Mark Meadows asked Ohr during testimony “Did Chris Steele get paid by the Department of Justice?

Ohr’s response: “My understanding is that for a time he was a source for the FBI, a paid source.

In the testimony Ohr also revealed that Steele had told him details about his work with Deripaska saying Deripaska’s attorney Paul Hauser “had information about Paul Manafort, that Paul Manafort had entered into some kind of business deal with” Deripaska. Ohr said Manafort “had stolen a large amount of money from” the Russian Oligarch and that Hauser was “trying to gather information that would show that.”

 

 

end

 

The Ohr documents reveal that the Dept of Justice tried to protect Steele even though he was fired from them for divulging is dossier to the media

(courtesy Kit Klarenberg/SputnikNews/zerohedge)

 

Real Collusion: Leaked Documents Reveal DoJ Protected Steele After FBI Shunning

Authored by Kit Klarenberg via SputnikNews.com,

Steele was cut off by the FBI for revealing his relationship with the Bureau to the media – but Ohr continued to pass information from Steele to his colleagues, regularly spoke to him via email and phone, and met up with him face-to-face on several occasions.

Information watchdog Judicial Watch has released 339-pages of US Department of Justice records, revealing former Associate Deputy Attorney General Bruce Ohr remained in regular contact with ex-MI6 operative Christopher Steele after Steele’s status as a paid confidential informant was terminated by the FBI in November 2016.

“These smoking gun documents show Christopher Steele, a Hillary Clinton operative and anti-Trump foreign national, secretly worked hand-in-glove with the Justice Department on its illicit targeting of President Trump. These documents leave no doubt that for more than a year after the FBI fired Christopher Steele for leaking, and for some 10 months after Donald Trump was sworn in as president, Bruce Ohr continued to act as a go-between for Steele with the FBI and Justice Department. The anti-Trump Russia investigation, now run by Robert Mueller, has been thoroughly compromised by this insider corruption,” said Judicial Watch President Tom Fitton.

Judicial Watch 🔎

@JudicialWatch

NEW: JW announced it received 339 pages of heavily redacted records from the DOJ which reveal that former Associate Deputy AG Bruce Ohr remained in regular contact Christopher Steele after Steele was terminated by the FBI in November 2016 (1/3)http://jwatch.us/diQ3KT

Judicial Watch Uncovers DOJ Records Showing Numerous Bruce Ohr Communications with Fusion GPS and…

Ohr Repeatedly Thanked Steele for ‘Updates’ and Assures Steele he will ‘Pass this [Information] along to my Colleagues’   (Washington, DC) – Judicial Watch announced today it received 339 pages of…

judicialwatch.org

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​Whether an accurate appraisal or not, it’s clear from the assorted communications Ohr was determined to ensure Steele retained access to the Bureau, and this contact remained hidden from public view – for instance, when acting Attorney General Sally Yates was fired by Trump January 2017, Steele feared Ohr would be fired too, and texted him to express his “sympathy and support”.

“If you end up out, I really need another contact point/number who is briefed. We can’t allow our guy to be forced to go back home. It would be disastrous all round, though his position right now looks stable. A million thanks,” Steele wrote.

In response, Ohr assured the Orbis chief he could “certainly” give him an FBI contact “if it becomes necessary”.

On 6 March that year, Senator Chuck Grassley wrote to then-FBI Director James Comey, seeking clarity on the nature of Steele’s relationship with the FBI. The next day, Steele texted Ohr to say he was “very concerned” by the letter, and its “possible implications for our operations and sources…We need some reassurance…Really fundamental issues at stake here”.

Days later, with Comey scheduled to testify before Congress, Steele told Ohr he was “a bit apprehensive” and hoped “important firewalls will hold”. On 24 March, Ohr and Steele discussed their “response” to the testimony, as he understood “an approach from the Senate Intelligence Committee” to Orbis was imminent.

On 26 October, Steele said he’s “very concerned” about documents the FBI intended to turn over to Congress about his work and “relationship with them”.

“Can we have a word tomorrow please? Just seen a story in the media about the Bureau handing over docs to Congress…Peoples live may be engangered [sic],” he despaired.

On 18 November, an again anxious Steele told Ohr it’d been “another tough week here” due to being “under the media spotlight” and the “legal pressures bearing down on us”.

“Also, we remain in the dark as to what has been briefed to Congress about us, our assets and previous work. I know you understand the importance of all this and have done your very best to support us…Sincere thanks for everything you are doing and I hope to speak to you again soon,” Steele texted.

In response, Ohr said he appreciated the “difficulties and uncertainty” he’d been experiencing.

Adding to the intrigue, the documents also reveal Ohr’s wife Nellie – hired as an ‘independent contractor’ by Fusion GPS during the November 2016 Presidential election – sent numerous emails and reports to her husband and other Justice Department officials on Russia issues. Ohr has never been questioned about this clear conflict of interest since, much less punished.

Judicial Watch has unearthed a vast number of documents exposing Steele’s intimate relationship with US authorities and the Clinton campaign – in July 2018, the organization released 412 pages of documents related to Foreign Intelligence Surveillance Act (FISA) warrants targeting Carter Page, a former Trump campaign adviser. The organization claimed the files confirmed the FBI and Department of Justice misled courts and withheld information proving Clinton’s campaign and the Democratic National Committee provided the “intelligence” used to persuade the courts to approve FISA warrants targeting the Trump team.

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Fox issues a rare rebuke of Judge Jeanine after her attack against Omar’s Hijab. However I believe she was correct in everything she stated

(courtesy zerohedge)

Fox Issues Rare Rebuke Of Judge Jeanine After Rant Against Ilhan Omar’s Hijab

Popular Fox News host Judge Jeanine Pirro is under fire after a now viral Saturday segment wherein she questioned Democratic Congresswoman Ilhan Omar’s loyalty to the United States due to her Muslim identity and especially because she wears a hijab, later resulting in a rare rebuke from her own network.

In a monologue on her show “Justice with Judge Jeanine” Pirro questioned everything from Omar’s oath to uphold the Constitution to her Muslim identity to the roots of her anti-Israel views, saying, “Your party is not anti-Israel, she is,” and adding, So if it’s not rooted in the party, where is she getting it from?”

The Fox host said that given her views for which she’s recently been in hot water couldn’t have come from the Democrat party, but must have more sinister anti-American origins.

She strongly suggested Rep. Omar’s views are rooted in Sharia law given that she wear’s a hijab: “Omar wears a hijab, which according to the Koran 33:59 tells women to cover so they won’t get molested,” Pirro said during the opening monologue, and followed with “which in itself is antithetical to the United States Constitution.”

“Think about it: Omar wears a hijab,” Pirro began “Is her adherence to this Islamic doctrine indicative of her adherence to Sharia law, which in itself is antithetical to the United States Constitution?”

Outcry from a number of media figures and legal groups on both the left and the right resulted in Fox later on Sunday issuing a rare statement which “strongly condemned” the segment.

Embedded video

John Whitehouse@existentialfish

Fox host Jeanine Pirro says that Ilhan Omar’s hijab may mean that she’s against the Constitution.

“We strongly condemn Jeanine Pirro’s comments about Rep. Ilhan Omar,” Fox News said in the statement. “They do not reflect those of the network and we have addressed the matter with her directly.”

The clip was then removed from Fox’s YouTube channel, but not before already going viral as the controversy grew into Monday, which resulted in a number of groups, including the American Jewish Committee slamming the segment.

“Suggesting that a member of Congress’s faith or identity is inconsistent with his or her commitment to uphold the Constitution is ugly bigotry. Muslims, Christians, Jews, and others have long served America with distinction. Judge Jeanine should apologize,” the American Jewish Committee said on Twitter.

Author James Surowiecki has also been widely cited in his reaction to Pirro’s comments: “The irony here is that Pirro is a practicing Catholic. And the slur she’s making against Omar — that if she follows the Koran, she can’t follow the Constitution — is remarkably similar to the arguments that were once made against Catholic politicians,” the popular New Yorkerjournalist said.

Amidst the backlash Pirro tried to clarify her remarks, saying on Sunday:

I’ve seen a lot of comments about my opening statement from Saturday night’s show and I did not call Representative Omar un-American. My intention was to ask a question and start a debate, but of course because one is Muslim does not mean you don’t support the Constitution. I invite Representative Omar to come on my show any time to discuss all of the important issues facing America today.

The controversy follows a row that erupted at the West Virginia state capitol last week over a poster that was hung outside the House of Delegates chamber connecting Omar to the September 11 terrorist attacks, resulting in a physical confrontation and an injuring, and ended with the resignation of a Capitol staffer.

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

China’s $345 Billion Stock Rout Shows Beijing’s Fear of Bubbles

Shanghai Composite sinks 4.4%, ends eight-week winning streak

    The bearish call on shares of a state-owned insurer, delivered by analysts at China’s biggest state-owned brokerage, was widely interpreted as a sign that the government wants this year’s world-beating surge in Chinese stocks to slow down

https://www.bloomberg.com/news/articles/2019-03-08/china-s-345-billion-stock-rout-shows-beijing-s-fear-of-bubbles

Does China’s official action to arrest a stock bubble arouse Powell to ‘do something’ about US stocks, or does China’s ploy to arrest an equities bubble give the Fed cover to do nothing?  If the latter is the case, Fed officials and other central bankers can just do what they do best: palaver and procure free sustenance.

U.S.-China Trade Deal Isn’t Imminent So No Summit Date Set, Envoy Says

Negotiators need to narrow gap over enforcement of potential deal before summit arrangements are made, U.S. ambassador to China says… as neither side feels an agreement is imminent…

https://www.wsj.com/articles/u-s-china-trade-deal-isnt-imminent-ambassador-branstad-says-11552031163

On Friday, Trump asserted that when the China trade deal is finalized, he thinks there will be a “very big spike” in the markets.  We think he is partially correct.  There should be a spike; but it could turn into an “Empire State Building” formation.

Minister claims ‘only two’ members of Cabinet still support Theresa May as she faces growing pressure to quit [The pound declined smartly on this report.]

https://www.telegraph.co.uk/politics/2019/03/10/cabinet-minister-claims-two-members-cabinet-still-support-theresa/

China Pushes against U.S. Trade Demands on Enforcement Yuan [Sunday]

By playing down the chances of a currency commitment solely by China, Yi aligned with Vice Commerce Minister Wang Shouwen, who on Saturday said that any enforcement mechanism for a prospective trade deal must be “two way, fair and equal.” Former high ranking officials have said that the deal will be seen as lopsided unless it also binds the U.S. to address China’s own grievances…

https://www.bloomberg.com/news/articles/2019-03-10/china-pushes-against-u-s-trade-demands-on-enforcement-yuan

Yuan Gains Expected to Be Capped as China Pushes Against U.S.

People’s Bank of China Governor Yi Gang signaled that China’s exchange-rate fixing mechanism will remain in place, suggesting that any upside in the yuan from its current 6.65-to-6.90 range against the dollar is limited, for now…

https://www.bloomberg.com/news/articles/2019-03-10/yuan-gains-seen-capped-as-china-pushes-against-u-s-demands

China’s credit growth slowed down in February after previous record rise

Chinese banks extended 885.8 billion yuan in net new yuan loans in February, according to data released by the People’s Bank of China (PBOC) on Sunday. That’s compared to 3.23 trillion yuan January and missedanalysts’ expectation of 950 billion yuan. But February’s tally was still 5.5 per cent higher than 839.3 billion yuan a year earlier…

https://www.yuantalks.com/chinas-credit-growth-slowed-sharply-in-february-after-previous-record-rise

Cohen met with Schiff staff for over 10 hours before House Oversight Committee hearing…

Staff for Intelligence Committee Chairman Schiff, D-Calif., traveled to New York at least four times to meet with him… as Republicans question whether the meetings amounted to coaching a witness…

https://www.foxnews.com/politics/cohen-met-with-schiff-for-more-than-10-hours-before-house-oversight-committee-hearing

 

@seanmdav: There needs to be a full House Ethics investigation of whether Schiff suborned perjury, obstructed justice, or intimidated a witness before his committee… Cohen repeatedly perjured himself…

 

@RoscoeBDavis1: The House has rules. They can depose any potential witness they want to. True enough, BUT they have to do it with both parties always present.  Not only were republicans not there they asked to be there and were denied. They asked to depose Cohen & were denied.  Schifty Schiff has a problem brewing for violating parliamentary procedures and House ethics rules.

 

In Surprise Move, House Republican Releases Bruce Ohr Transcript

Collins, the top Republican on the House Judiciary Committee, took the unusual step by reading a statement on the House floor and providing a link to the Ohr transcript in the public record. The representative said his patience with the Justice Department “has grown thin.”…

     “I intend to make other transcripts public soon,” he said. “I’m willing to consider any reasonable redactions DOJ makes in a timely manner, but won’t allow these transcripts to remain shrouded in secrecy.”…https://amp.dailycaller.com/2019/03/08/doug-collins-bruce-ohr-transcript

 

@seanmdav: Bruce Ohr testified that Glenn Simpson of Fusion GPS provided to federal officials information we know to be false regarding Cleta Mitchell, a Republican campaign finance attorney, and the NRA. Giving false statements to federal officials is a crime under 18 U.S.C. 1001.

      On the left is Glenn Simpson’s sworn testimony that he never spoke to anyone at the FBI about Christopher Steele or his dossier “during the election.”  On the right is Bruce Ohr’s sworn testimony that he spoke w/ Simpson in “August of 2016” about Steele.  https://twitter.com/seanmdav/status/1104037072619401217

Bruce Ohr’s Testimony Contradicts Testimony Provided by Rosenstein and Simpson

https://saraacarter.com/bruce-ohrs-testimony-contradicts-testimony-provided-by-rosenstein-and-simpson/

 

@JackPosobiec: To be clear: We now know Christopher Steele was being paid by the FBI, Hillary, and Russian oligarch Oleg Deripaska all at the same time in 2016

House Democrats already have secret White House documents about Jared and Ivanka’s security clearances because of leaky West Wing – President Trump reportedly overruled chief of staff John Kelly and top White House lawyer who had opposed Jared getting a top clearance

    White House counsel Pat Cipollone… stated flatly that deciding security clearances is among the Executive Branch’s ‘constitutional prerogatives.’ …

https://www.dailymail.co.uk/news/article-6786913/House-panel-secret-White-House-documents-Jared-Ivankas-security-clearances.html

 

WSJ’s Peggy Noonan [ex-Reagan & Bush I speech writer]: Get Ready for the Struggle Session

In America, and even more so on Twitter, there’s a whiff of China’s Cultural Revolution in the air.

   The Chinese Cultural Revolution was… a catastrophe comparable in its societal effects, and similar in its historical feel, to the terrors of Stalin and the French Revolution. No one knows how many died… But what I find myself thinking of these days is the ritual humiliations, the “struggle sessions.”…

    He [Mao] wrote, “feudal forces full of hatred towards socialism . . . stirring up trouble, sabotaging socialist productive forces.” The party had been “infiltrated” by pragmatists and revisionists…

    Joe Biden understands the moment. He quickly apologized last week after calling Vice President Mike Pence “a decent guy.” Progressive Cynthia Nixon denounced Mr. Pence as “America’s most anti-LGBT elected leader and asked Mr. Biden to “consider how this falls on the ears of our community.” “You’re right, Cynthia,” he quickly responded.  All the Democratic candidates have apologized for something

https://www.wsj.com/articles/get-ready-for-the-struggle-session-11552003346

 

Ocasio-Cortez draws bigger crowd at SXSW than 2020 candidates Warren, Klobuchar

https://www.foxnews.com/politics/ocasio-cortez-outdraws-2020-presidential-candidates-warren-klobuchar-at-sxsw

 

Ocasio-Cortez Blasts Capitalism as an ‘Irredeemable’ System [US capitalism ended under FDR]

https://www.bloomberg.com/news/articles/2019-03-10/ocasio-cortez-blasts-capitalism-as-an-irredeemable-system

 

@RealSaavedra AOC at SXSW (03/09): People should be “excited” about “being automated out of work”… Supports taxing corporations at 90%

 

House votes in favor of illegal immigrant voting

https://www.washingtontimes.com/news/2019/mar/8/house-votes-favor-illegal-immigrant-voting/

 

Judicial Watch’s @TomFitton: I estimate at least 900,000 aliens illegal voted in midterms. New numbers out of Texas and Pennsylvania suggest foreign national voting in massive numbers!  And leftists in House vote to support illegal alien voting!

Attachments area

 

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One of my favourite writers on the economy:  Rob Kirby.  We have pointed out that both me and Catherine Fitts discovered a huge 21 trillion dollars has been missing from the Dept of Defense in the past 2 years. These dollars were printed to safeguard the system during the 2008 crisis and was never returned.  It is these dollars that are propping up the system and whacking gold/silver

(courtesy Rob Kirby/Greg Hunter.)

Massive Secret Money Printing Will Shoot Gold Higher – Rob Kirby

By Greg Hunter On March 10, 2019

Macroeconomic analyst Rob Kirby says $21 trillion in “missing money,” discovered in late 2017, is now a “national security” issue but is not a secret to the leaders of the rest of the world. Kirby explains, “The national governments around the world have become all too aware of the shenanigans that have gone on and the poor stewardship that has been illustrated by the keepers of the U.S. dollar, the world’s reserve currency. This is what is at the root of all of our international economic tension. This is what is really at the root of the difficulties and differences between the American regime, the Chinese regime and the Russian regime. These people are aware of what has transpired, and they are not going to tolerate what’s been done in the name of keeping the U.S. dollar propped up as the world’s reserve currency and the criminality that’s been involved in doing so.”

Kirby warns, “Nobody could come to grips with the criminality that was present in our system. . . .   The slow burn is probably not in the cards anymore. We are likely to see very significant change in the very near term going forward. . . . We are starting to see signs of admission that things are not as we were told they were . . . . The system is critically broken. It’s like Humpty Dumpty who fell off the wall. They can’t put the pieces back together again. People are going to have to come clean to what has truly transpired or they are going to be hung. The reality of what has transpired is coming to light whether people want to hear it or not.”

With massive amounts of secret and not so secret money already created, what will happen to gold? Kirby says, “The price of gold will revalue itself once the carnage and the pieces are all on the ground and people around the globe realize the true enormity of the crimes that have been committed. The price of gold will revalue. It will revalue to a dramatically much higher price than we have been accustom to. That’s coming whether we like it or not. . . . We could see something like a real Roman candle in the price of gold. We could see the price do things we could have never ever imagined in the very near future. We are headed for a very, very serious round of inflation and probably a hyperinflation coming to the West. We will live to experience it, and this is baked into the cake. . . . The people in control of the U.S. dollar are very aware that this is coming too. This is why they are muscling up and talking more about gun control and putting in more pieces to implement a police state in America. They are very aware of what is coming.”

Join Greg Hunter as he goes One-on-One with gold expert and macroeconomic analyst Rob Kirby.

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I WILL SEE YOU TUESDAY NIGHT
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