MARCH 15 (IDES OF MARCH)/GOLD SURPRISINGLY REBOUNDS UP $7.50 TO $1303.10//SILVER IS UP 16 CENTS TO $15.33//QUEUE JUMPING CONTINUES AT BOTH THE GOLD COMEX AND SILVER COMEX//USA 10 YR BOND RATE FALLS TO 2.59%//ROCKETS FIRED FROM GAZA LAND IN TEL AVIV BUT IN OPEN SPACES: WAR IS INEVITABLE//BOEING IS TRYING TO FIX THEIR PROBLEM STATING THAT IT IS A SOFTWARE PROBLEM: TO ME IT LOOKS LIKE A HARDWARE PROBLEM//MASSIVE KILLINGS AT A MOSQUE IN CHRIST CHURCH NEW ZEALAND//UNBELIEVABLE: CLINTON LAWYERS STRUCK A DEAL WITH DEPT OF JUSTICE AND FBI NOT TO LOOK INTO CLINTON EMAILS AT HER FOUNDATION: A TWO TIERED SYSTEM OF JUSTICE///MORE SWAMP STORIES FOR YOU TONIGHT///

 

 

 

 

GOLD: $1303..00  UP $7.50 (COMEX TO COMEX CLOSING)

Silver:   $15.33 UP 16 CENTS (COMEX TO COMEX CLOSING)

Closing access prices:

Gold :  $1302.30

 

silver: $15.29

 

Today is options expiry for all USA equities in the Dow and Nasdaq.  Gold/silver is effected for two reasons:

  1. gold/silver equity shares
  2.  GLD/SLV trading on New York

 

We only witnessed minor whacking yesterday.  We start in earnest the expiry of the comex/LBMA options beginning next week.

 

Comex options expiry ends:  Wednesday March 26/2019

London/LBMA expires Monday March 31/2019.

The crooks continue with their whacking right in front of the authorities/regulators despite the criminal probe of precious metals manipulations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For comex gold and silver:

MARCH

 

 

 

NUMBER OF NOTICES FILED TODAY FOR  MAR CONTRACT: 1 NOTICE(S) FOR 100 OZ (0.0031 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  337 NOTICES FOR 33700 OZ  (1.0482 TONNES)

 

 

SILVER

 

FOR MARCH

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

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

 

total number of notices filed so far this month: 5302 for 26,510,000

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE $3913:UP $44

 

Bitcoin: FINAL EVENING TRADE: $3931  UP 51

 

end

 

XXXX

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

today 1/1

EXCHANGE: COMEX
CONTRACT: MARCH 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,293.400000000 USD
INTENT DATE: 03/14/2019 DELIVERY DATE: 03/18/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
661 C JP MORGAN 1
905 C ADM 1
____________________________________________________________________________________________

TOTAL: 1 1
MONTH TO DATE: 337

Let us have a look at the data for today

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In silver, the total OPEN INTEREST FELL BY A CONSIDERABLE SIZED 1403 CONTRACTS FROM 188,266 DOWN TO 186,863 WITH YESTERDAY’S STRONG 30 CENT LOSS IN SILVER PRICING AT THE COMEXTODAY WE ARRIVED FURTHER FROM  AUGUST’S 2018  RECORD SETTING OPEN INTEREST OF 244,196 CONTRACTS. WE MUST HAVE HAD CONSIDERABLE SHORT COVERING AGAIN TODAY.

 

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 CONSIDERABLE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:

0 EFP’S FOR MARCH,  0 FOR APRIL,  2714 FOR MAY, 0 FOR DECEMBER AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 2714 CONTRACTS. WITH THE TRANSFER OF 2714 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 2714 EFP CONTRACTS TRANSLATES INTO 13.570 MILLION OZ  ACCOMPANYING:

1.THE 30 CENT LOSS 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: 26.835 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:

24,126 CONTRACTS (FOR 11 TRADING DAYS TOTAL 24,126 CONTRACTS) OR 120.63 MILLION OZ: (AVERAGE PER DAY: 2193 CONTRACTS OR 10.966 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAR:  120.63 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 17.23% 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:          486.02    MILLION OZ.

JANUARY 2019 EFP TOTALS:                                                      217.455. MILLION OZ

FEB 2019 TOTALS:                                                                       147.4       MILLION OZ/

 

 

RESULT: WE HAD A CONSIDERABLE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1403 WITH THE 30 CENT LOSS IN SILVER PRICING AT THE COMEX /YESTERDAY..THE CME NOTIFIED US THAT WE HAD   CONSIDERABLE SIZED EFP ISSUANCE OF 2714 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) .

TODAY WE GAINED A GOOD SIZED: 1617 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: (DESPITE THE LOSS IN PRICE)

i.e 2714 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 1403 OI COMEX CONTRACTSAND ALL OF THIS  DEMAND HAPPENED WITH A 30 CENT LOSS IN PRICE OF SILVER  AND A CLOSING PRICE OF $15.17 WITH RESPECT TO YESTERDAY’S TRADING. YET WE HAVE 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. 0.936 BILLION OZ TO BE EXACT or 133% 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: 26.835 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 VERY STRONG 8,337 CONTRACTS UP TO 541,737 DESPITE THE FALL IN THE COMEX GOLD PRICE/(A LOSS IN PRICE OF $13.60//YESTERDAY’S TRADING). HOWEVER…….

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A  STRONG SIZED 7547 CONTRACTS:

 

MARCH HAD AN ISSUANCE OF 0 CONTACTS  APRIL 7292 CONTRACTS,JUNE: 255 CONTRACTS DECEMBER: 0 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 541,737. 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 HUMONGOUS SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 18,068 CONTRACTS: 8,337 OI CONTRACTS INCREASED AT THE COMEX AND 7547 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 15,884 CONTRACTS OR 1,588,400= 49.40 TONNES.

YESTERDAY WE HAD A LOSS IN THE PRICE OF GOLD TO THE TUNE OF $13.60.AND WITH THAT, WE HAD A HUMONGOUS GAIN IN TONNAGE OF 49.40 TONNES?????!!!!!!.

 

 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MARCH : 80,360 CONTRACTS OR 8,036,000 OZ OR 249.95 TONNES (11 TRADING DAYS AND THUS AVERAGING: 7305 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 11 TRADING DAYS IN  TONNES: 249.95 TONNES

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

THUS EFP TRANSFERS REPRESENTS 249.95/2550 x 100% TONNES = 9.80% OF GLOBAL ANNUAL PRODUCTION SO FAR IN DECEMBER ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     1123.9 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 8,337 DESPITE THE LOSS IN PRICING ($13.60) THAT GOLD UNDERTOOK YESTERDAY) //.WE ALSO HAD A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 7547 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 7547 EFP CONTRACTS ISSUED, WE  HAD A GIGANTIC GAIN OF 15,884 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

7547 CONTRACTS MOVE TO LONDON AND 8,337 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE STRONG GAIN IN TOTAL OI EQUATES TO 49.40 TONNES). ..AND ALL OF THIS HUGE  DEMAND OCCURRED WITH A LOSS OF $13.60 IN YESTERDAY’S TRADING AT THE COMEX???????!!!!!

 

 

 

we had:  1 notice(s) filed upon for 100 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD UP  $7.80 TODAY 

 

NO CHANGES IN GOLD INVENTORY AT THE GLD//

 

 

 

INVENTORY RESTS AT 772.46 TONNES

 

 

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

 

SLV/

WITH SILVER UP 16 CENTS  IN PRICE  TODAY:

 

 

 

/INVENTORY RESTS AT 310.848 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 CONSIDERABLE SIZED 1403 CONTRACTS from 188,266 DOWN TO 186,863 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., 2714 FOR MAY AND  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2714 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 1403 CONTRACTS TO THE 2714 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE  OBTAIN A GAIN OF 1311  OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 6.555 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 26.835 MILLION OZ FOR MARCH.

 

 

RESULT: A CONSIDERABLE SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE 30 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY.BUT WE ALSO HAD A GOOD SIZED 2714 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)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED UP 31.07 POINTS OR 1.04% //Hang Sang CLOSED UP 160.87 POINTS OR 0.56%  /The Nikkei closed UP 163.83 POINTS OR 0772%/ Australia’s all ordinaires CLOSED DOWN .03%

/Chinese yuan (ONSHORE) closed UP  at 6.7134 AS TRUCE DECLARED FOR 3 MONTHS /Oil UP to 58.62 dollars per barrel for WTI and 66.92 for Brent. Stocks in Europe OPENED GREEN 

ONSHORE YUAN CLOSED UP // LAST AT 6.7134 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.7145 / TRADE TALKS NOW ON/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

 

 

 

 

3A/NORTH KOREA/SOUTH KOREA

 

 

 

i)North Korea/

Bankrupt North Korea is mulling the suspension of nuclear talks with the USA. Kim will announce his decision shortly.  However the sanctions are killing the country.

( zerohedge)

 

 

 

b) REPORT ON JAPAN

 

 

 

3 C/  CHINA

i)China/Last night:

 

The plunge protection team abandons the Chinese stock market.  The small cap Chi Next has seen the last 3 days of notable absence from the PPT

( zerohedge)

ii)The ever changing time line of the Trump trade deal with China

( Mish Shedlock/Mishtalk)

iii)Interesting: Chinese Premier Li vows no massive stimulus despite the fact that Beijing has already launched its massive QE

(courtesy zerohedge)

4/EUROPEAN AFFAIRS

i)A good commentary from Alasdair Macleod as he discusses the new QE model to be introduced by the ECB in September. He states that this stimulus is akin to adrenaline being administered to a dead horse.  The European economies are stalling and the rising inflation will kill off the Euro and its economy for good

( Alasdair Macleod)

ii)DENMARK

Gatestone comments on the failed immigration policies and how this is destroying the country of Denmark

(courtesy Gatestone Institute/Hasselbalch)

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)Iran

Iran holds massive drone drills officially named “Way to Jerusalem” and this is alarming Israel

(courtesy zerohedge)

ii) Middle East

 

6. GLOBAL ISSUES

i)Boeing:

a)The flight pattern showed something was extraordinarily wrong as the plan swung up and down by hundred of feed

( zerohedge)

b)And then they found the “jackscrew” which confirmed that the Boeing 737 max 8 was set to dive:

(courtesy zerohedge)

ii)Multiple fatalities on a raid on a mosque in New Zealand’s southern most city of Christ Church.

(courtesy zerohedge)

 

 

 

7. OIL ISSUES

 

 

 

 

8 EMERGING MARKET ISSUES

 

 

i)VENEZUELA/

 

 

 

 

 

9. PHYSICAL MARKETS

i)Our good friend Hugo Salinas Price is interviewed by a Russian bullion dealer and he discusses government intervention into the gold/silver market.

( Hugo Salinas Price/GATA)

ii)Italy resists both the USA and the EU as they plan to invest into China’s Sick road initiative.  They plan to borrow plenty of dollars form China on this matter

( London’s Financial Times/GATA)

iii)The Hong Kong dollar has been on the weaker side of its peg with the dollar and as such the Monetary authority has been spending billions of dollars defending the peg

( Bloomberg/GATA)

 

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

 

 

MARKET TRADING//early this morning

a) Very dangerous;  USA 10 yr bond yield plummets to 2.58%

( zerohedge)

b) stocks falter in the early morning

(zerohedge)

 

 

ii)Market data

a)The very important NY (Empire Manufacturing Survey) reveals a huge slump and this soft data manufacturing report is at a 22 month low

( zerohedge)

b)Soft data fairy tales as the UMich sentiment rebounds.  The hope factory was the reason for the rise.  However inflation sentiment was a bummer
( zerohedge)

c)The JOLT report shows a soaring number of job openings as well as a huge number of quits (take your job and shove it). This will probably force Powell to raise rates sometime during 2019

(courtesy zerohedge)

ii)USA ECONOMIC/GENERAL STORIES

TIC report:

This is rather alarming:  Foreigners dumped the most USA investments in a decade during the December through January period

(courtesy zerohedge)

 

iv)SWAMP STORIES

What crooks!! The DOJ and the Clinton lawyers struck a secret deal to block the FBI access to the Clinton Foundation emails.  This was in the Strzok testimony held behind closed doors and kept from the public

( 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 8,337 CONTRACTS UP TO A LEVEL OF 541,737 DESPITE THE LOSS IN THE PRICE OF GOLD ($13.60) IN YESTERDAY’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 7547 EFP CONTRACTS WERE ISSUED:

FOR MARCH:  0. FOR APRIL 7292, FOR JUNE:255 CONTRACTS AND FINALLY DECEMBER: 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  7547 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: 15,884 TOTAL CONTRACTS IN THAT 7547 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A HUMONGOUS SIZED 8,337 COMEX CONTRACTS.

NET GAIN ON THE TWO EXCHANGES ONLY::15,884 contracts OR 1,588,400 OZ OR 49.40 TONNES.

 

We are now in the NON active contract month of MARCH and here the open interest stands at 38 contracts  for a  gain of 1 contracts.We had 0 notices served upon yesterday so we  GAINED  1 contracts or AN ADDITIONAL 100 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 lost by 3242 contracts down to 261,062 contracts. The non active month of May picked up 427 contracts for a total of 774 open interest.  After May, the next active delivery month is June and here the OI stands at 189,274 having gained 8761 contracts.

 

 

 

 

TODAY’S NOTICES FILED:

WE HAD 1 NOTICES FILED TODAY AT THE COMEX FOR 100 OZ. (0.0031 tonnes)

 

 

 

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And now for the wild silver comex results.

Total COMEX silver OI FELL BY A CONSIDERABLE SIZED 1403 CONTRACTS FROM 188,266 DOWN TO 186,863(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 CONSIDERABLE OI COMEX GAIN  OCCURRED DESPITE A 30 CENT LOSS IN PRICING.//YESTERDAY 

 

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF MARCH AND THE  OPEN INTEREST IN THIS FRONT MONTH RESTS AT 75 HAVING LOST 122 CONTRACTS.

WE HAD 128 NOTICES FILED YESTERDAY SO WE GAINED 6 CONTRACTS OR 30,000 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 11TH 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 ROSE TO 799 CONTRACTS FOR A GAIN OF 11 CONTRACTS.  AFTER APRIL, THE NEXT BIG ACTIVE DELIVERY MONTH IS MAY AND HERE THE OI FELL BY 1986 CONTRACTS DOWN TO 134,863 CONTRACTS. WE HAVE WITNESSED A MASSIVE SHORT COVERING AT THE BANKS WITH RESPECT TO SILVER COUPLED WITH CONTINUE QUEUE JUMPING……SOMETHING IS SCARING THEM TO DEATH!!!

 

 

 

ON A NET BASIS WE GAINED A GOOD 1311 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A 1403 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 2714 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN ON THE TWO EXCHANGES:  1311 CONTRACTS...AND ALL OF THIS DEMAND OCCURRED WITH A 30 CENT LOSS IN PRICING// YESTERDAY???. 

 

 

 

 

 

 

 

 

 

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:  249,478  CONTRACTS

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  289,665  contracts

 

 

 

 

 

 

 

 

 

Initial standings for  MAR/GOLD

MAR 15 /2019.

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

oz

 

 

 

 

 

 

Deposits to the Customer Inventory, in oz  

 

 

 

 

 

1999.999

oz

 

hsbc

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No of oz served (contracts) today
1 notice(s)
 nil OZ
(0.0000 TONNES)
No of oz to be served (notices)
37 contracts
(3700 oz)
Total monthly oz gold served (contracts) so far this month
337 notices
33700 OZ
1.0482 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

 

we had 0 dealer entries:

 

 

total dealer deposits: nil oz

total dealer withdrawals: 0 oz

We had 0 kilobar entries

 

we had 1 deposit into the customer account

i) Into JPMorgan:  nil oz

ii) Into hsbc:  1999.999

total gold deposits: 1,999.999 oz

 

 very little gold arrives from outside.

we had 0 gold withdrawals from the customer account:

 

 

 

total gold withdrawals;  nil oz

 

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  1 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 1 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 (337) x 100 oz , to which we add the difference between the open interest for the front month of MAR. (38 contract) minus the number of notices served upon today (1 x 100 oz per contract) equals 37,600 OZ OR 1.1664 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 (337 x 100 oz)  + {38)OI for the front month minus the number of notices served upon today (1 x 100 oz )which equals 37,600 oz standing OR 1.1695 TONNES in this active delivery month of MARCH.

We GAINED 1 contracts or an additional 100 OZ ADDITIONAL 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;   8,037,696.166 oz 250.000 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 15 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
831,953.102 oz oz
Int Delaware
Brinks
Scotia

 

 

Deposits to the Dealer Inventory
nil oz
Deposits to the Customer Inventory
600,104.305
oz
CNT
No of oz served today (contracts)
10
CONTRACT(S)
50,000 OZ)
No of oz to be served (notices)
65 contracts
325,000 oz)
Total monthly oz silver served (contracts) 5302 contracts

(26,510,000 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  1 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 147.825 million oz of  total silver inventory or 49.12% of all official comex silver. (147 million/300.8 million)

 

i) Into CNT:  600,104.305 oz

 

 

 

 

 

 

 

 

 

 

 

 

 

 

total customer deposits today:  600,104.305    oz

 

we had 3 withdrawals out of the customer account:

i) Out of Int. delaware:  26,271.952 oz

ii) out of Brinks: 29,836.870 oz

iii) Out of Scotia: 775,844.280 oz

 

 

 

 

 

 

 

 

 

 

 

total withdrawals: 831,953.102 oz    oz

 

we had 0 adjustment

 

total dealer silver:  95.669 million

total dealer + customer silver:  301.449 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 5302 x 5,000 oz = 26,510,000 oz to which we add the difference between the open interest for the front month of MAR. (75) 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: 5292(notices served so far)x 5000 oz + OI for front month of MAR( 75) -number of notices served upon today (10)x 5000 oz equals 26,835,000 oz of silver standing for the MAR contract month.  This is a strong number of oz standing for an off delivery month.

We gained  6 contracts or an additional 30,000 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 11TH 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!

 

 

 

 

 

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:  56,373 CONTRACTS

 

 

CONFIRMED VOLUME FOR YESTERDAY: 74,772 CONTRACTS… 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 74,772 CONTRACTS EQUATES to 387 million OZ  55.2% OF ANNUAL GLOBAL PRODUCTION OF SILVER

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

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

end

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV RISES TO -2.53% (MAR15/2019)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -1.02% to NAV (MAR15/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -2.53%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 13.11/TRADING 12.76/DISCOUNT 2.65

END

And now the Gold inventory at the GLD/

MARCH 15/WITH GOLD UP $7.50 TODAY; NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 772.46 TONNES

MARCH 14/WITH GOLD DOWN $13.60 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 772.46 TONNES

MARCH 13/WITH GOLD UP $11.10 TODAY: A HUGE DEPOSIT AGAIN OF 2.93 TONNES INTO THE GLD INVENTORY/INVENTORY RESTS AT 772.46 TONNES

MARCH 12/WITH GOLD UP $7.00: A HUGE DEPOSIT OF 2.94 TONNES OF GOLD INTO THE GLD INVENTORY/INVENTORY RESTS AT 769.53 TONNES

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

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

MAR 15/2019/ Inventory rests tonight at 772.46 tonnes

*IN LAST 560 TRADING DAYS: 162.59 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 460 TRADING DAYS: A NET 4.230 TONNES HAVE NOW BEEN ADDED INTO THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

MARCH 15/WITH SILVER UP 16 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS TODAY AT 310.848 MILLION OZ//

MARCH 14/WITH SILVER DOWN 30 CENTS: A SURPRISING DEPOSIT OF 1.17 MILLION OZ OF SILVER INTO THE SLV//INVENTORY RESTS AT 310.848 MILLION OZ//

MARCH 13/WITH SILVER UP 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY/INVENTORY AT THE SLV RESTS AT 309.676 MILLION OZ/

MARCH 12/WITH SILVER UP 14 CENTS TODAY: NO CHANGES IN SILVER INVENTORY/INVENTORY AT THE SLV RESTS AT 309.676 MILLION OZ////

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/

 

MAR 15/2019:

 

Inventory 310.848 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 2.16/ and libor 6 month duration 2.70

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

G0LD LENDING RATE: + .54

 

 

XXXXXXXX

12 Month MM GOFO
+ 2.46%

LIBOR FOR 12 MONTH DURATION: 2.85

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.39

end

 

PHYSICAL GOLD/SILVER STORIES

end
i) GOLDCORE BLOG/Mark O’Byrne

Invest In Gold:

 

GATA STORIES WITH RESPECT TO GOLD/PRECIOUS METALS.

Our good friend Hugo Salinas Price is interviewed by a Russian bullion dealer and he discusses government intervention into the gold/silver market.

(courtesy Hugo Salinas Price/GATA)

‘Gold bug from way back’ Salinas Price in broad interview with Russian gold advocate

 Section: 

11:47a ICT Friday, March 16, 2019

Dear Friend of GATA and Gold:

Entrepreneur and philanthropist Hugo Salinas Price, president of the Mexican Civic Association for Silver, this week was interviewed by Russian bullion dealer and gold advocate Dmitry Balkovskiy, proprietor of Goldenfront.ru, discussing government interventions against gold, destruction of the dollar-based financial system by President Trump, Russia’s increasing recognition of gold’s monetary functions, and his philosophy of life and his history in business and monetary metals causes. Salinas Price calls himself “a gold bug from way back” and explains why.

The interview is a half-hour long and can be viewed at YouTube here:

https://www.youtube.com/watch?v=e8qeM6KXZZA

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

END

The Hong Kong dollar has been on the weaker side of its peg with the dollar and as such the Monetary authority has been spending billions of dollars defending the peg

(courtesy Bloomberg/GATA)

Hong Kong seen spending billions more to defend currency peg

 Section: 

By Tian Chen
Bloomberg News
Thursday, March 14, 2019

This round of currency intervention in Hong Kong is far from over.

That’s according to analysts, who are watching the interplay between the amount of money in the city’s financial system and local borrowing costs. Shorting the Hong Kong dollar will remain profitable until the latter starts to go up sharply, and the monetary authority will spend at least another HK$50 billion (US$6.4 billion) defending the peg before that happens, according to Bank of America Merrill Lynch and OCBC Wing Hang Bank Ltd.

Hong Kong’s currency has hit the weak end of its trading band repeatedly over the past week, spurring intervention that’s cost nearly $700 million.

At the heart of the analysts’ calculus is a call on how low the city’s aggregate balance can go before banks start feeling a funding squeeze. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-03-15/hong-kong-seen-spendi…

* * *

Join GATA here:

Mining Investment Asia
Marina Bay Sands Conference and Exhibition Center
Singapore
Tuesday-Thursday, March 26-28

https://www.mininginvestmentasia.com/

Mines and Money Asia
Hong Kong Conference and Exhibition Center
Wan Chai, Hong Kong
Tuesday-Thursday, April 2-4

https://asia.minesandmoney.com/

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

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

END

Italy resists both the USA and the EU as they plan to invest into China’s Sick road initiative.  They plan to borrow plenty of dollars form China on this matter

(courtesy London’s Financial Times/GATA)

Resisting U.S. and E.U., Italy plans to go into hock with China

 Section: 

Italy Eyes Loans from China’s Development Bank for ‘Belt and Road Initiative’ Projects

By Davide Ghiglione, Rachel Sanderson, and James Kynge
Financial Times, London
Friday, March 15, 2019

Italy is considering borrowing from China’s Asian Infrastructure Investment Bank as part of plans to become the first G7 country to endorse Beijing’s contentious “Belt and Road” global investment programme.

The two countries are planning to “explore all opportunities for co-operation” in Italy and “third countries,” according to the five-page draft accord obtained by the Financial Times. The wide-ranging agreement would span areas including politics, transport, logistics, and infrastructure projects.

In a departure from previous Belt and Road Initiative accords, the two countries would “work together with the Asian Infrastructure Investment Bank,” according to the working document.

The draft shows that Italy is in advanced talks with China and resisting pressure from Washington and Brussels to drop those discussions at a time of rising concerns over Beijing’s ambitions and potential security threat. …

… For the remainder of the report:

https://www.ft.com/content/29f4814c-467e-11e9-a965-23d669740bfb


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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

i) Chinese yuan vs USA dollar/CLOSED/ LAST AT: 6.7134/

 

//OFFSHORE YUAN:  6.7145   /shanghai bourse CLOSED UP 31.87 POINTS OR 1.04% /

 

HANG SANG CLOSED UP  160.87 POINTS OR 0.56%

 

 

2. Nikkei closed UP 163.83 POINTS OR 0.77%

 

 

 

 

 

 

3. Europe stocks OPENED GREEN

 

 

 

 

 

 

 

 

/USA dollar index FALLS TO 96.64/Euro RISES TO 1.1319

3b Japan 10 year bond yield: RISES TO. –.03/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 111.70/ 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:: 58.62 and Brent: 66.92

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO +.09%/Italian 10 yr bond yield UP to 2.49% /SPAIN 10 YR BOND YIELD UP TO 1.19%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.40: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 3.81

3k Gold at $1303.80 silver at:15.37   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 13/100 in roubles/dollar) 65.31

3m oil into the 58 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 111.70 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 1.0042 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1364 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 +0.09%

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 2.63% early this morning. Thirty year rate at 3.04%

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

6.  TURKISH LIRA:  UP  TO 5.4673

 

Stocks Surge As Traders Cheer “Quad Witching” Ides Of March

Global stocks rebounded and US equity futures jumped overnight, ignoring concerns over a delay in the Trump-Xi meeting to at least April and North Korea’s threat to resume nuclearization, after a report that U.S.-China trade talks were making progress as fears about a global slowdown faded (even as China’s latest data showed a continued slowdown) and the UK voted to reject a no deal Brexit. European stocks just printed at session highs, rising 0.8%, alongside U.S. index futures which were trading at 2,824, above the 2,817 key resistance level, as emerging-market shares advanced, even as the dollar and Treasuries held steady.

 

The question, as both Nomura and Goldman warned, is what happens after today’s “Quad Witching” Ides of March ends: as a reminder, today is “quadruple witching” Friday, when contracts for stock-index futures, stock-index options, individual stock options and individual stock futures all expire. The risk is that both prior “witches” took place just ahead of major reversals in the S&P, the first in September, just as the market peaked, the second in December, just before the trough.

For now, however, it is shaping up as another impressive week for US stocks, which have not only erased all of last week’s losses but are set for their second best week of the year.

 

Sentiment was boosted after China’s Xinhua reported – for the nth time – that Chinese Vice Premier Liu He spoke by telephone with Treasury Secretary Steven Mnuchin and Trade Representative Robert Lightizer, and the two sides made substantive progress on trade, the news agency Xinhua reported.

Gains in U.K. shares and European technology companies led Europe’s Stoxx 600 to a five-month high after Britain’s parliamentary vote on Brexit, lifting futures on the S&P 500, Dow and Nasdaq. Earlier, Asian markets rose from Tokyo to Beijing, where the Chinese government said it would cut value-added taxes, reinforcing expectations for an eventual pick-up in the second-largest economy and helping push the Australian and New Zealand currencies higher.

“We view the overall outcome of this week’s votes … as positive for UK assets,” strategists at BNP Paribas wrote in a research note. “Indeed, the pound has risen by 2 percent on the week. Yet, while most of the routes ahead now look net positive, we still expect a bumpy path.”

 

In Asia, MSCI’s broadest index of Asia-Pacific shares outside of Japan gained over half a percent. MSCI’s broadest, All-Country World Index was up 1 percent on the day and was set for its best week since early January.

The Shanghai Composite Index added 1 percent and Japan’s Nikkei climbed 0.8 percent. South Korea’s KOSPI rose nearly 1 percent. The index had risen as much as 1.2 percent but gave up some gains following reports that North Korea might suspend nuclear talks with the United States. Comments from Chinese Premier Li Keqiang also helped sentiment. His remarks suggested Beijing is ready to roll out more forceful stimulus to bolster China’s economy.

To boost optimism, China also promised billions in tax cuts and infrastructure spending, as weakening domestic demand and the trade war with the United States curbs economic growth.

China and Europe had been two of the key areas of concern at the start of 2019 and even though there is still much uncertainty, targeted fiscal stimulus in China (VAT cut April 1) and potentially some clarity emerging on Brexit over coming weeks could improve sentiment,” strategists at ING Bank wrote in a note to clients.

In the latest trade news, the most notable development was that Chinese Vice Premier Liu He conducted a phone call with US Treasury Secretary Mnuchin and Trade Representative Lighthizer in which China and US were said to have made further substantive progress on trade discussions, while Mnuchin had earlier commented that he is pleased with progress on trade talks with China and expects elements of Chinese trade talks to be resolved in the near future.  Separately President Trump said we will have news on China trade deal in the next 3-4 weeks one way or the other, while he added that China has been very responsible and very reasonable. In related news, there were also earlier reports which suggested China was proposing tying in an official state visit by President Xi to a US trade deal.

In other China-related news, Premier Li said China faces new downward pressure but added they will not let growth slip out of reasonable range and that China can use reserve requirements as well as interest rates to support the economy. Premier Li added China will cut VAT tax from April 1st and will tighten its belt due to tax cuts, while he hopes US-China trade talks achieve results.

In the top overnight geopolitical news, North Korea is considering suspending nuclear discussions with US and does not intend to yield to US demands, while leader Kim is set to make an official announcement of his position, according to the Deputy Foreign Minister Choe Son Hui. Elsewhere other reports also noted that Kim Jong Un may rethink moratorium on missile launches and that the US threw away a golden opportunity at the Hanoi summit.

In currencies the dollar index slipped 0.2 percent to 96.619 after rising 0.25 percent on Thursday to recover from a nine-day trough of 96.385. The U.S. currency was flat at 111.74 yen. It had dipped to 111.49 yen after the Bank of Japan’s left interest rates unchanged.  The central bank offered a bleaker assessment of exports and output, as global demand waned. Observers said, that it may be too early to expect the BOJ to ease policy further.

The pound strengthened at the end of a week made volatile by critical votes on Brexit in Parliament. Prime Minister Theresa May won the endorsement of British politicians to seek a Brexit delay. The euro edged up 0.1 percent to $1.1315 after slipping 0.2 percent overnight.

Elsewhere, in commodities oil prices rose as investors focused on global production cuts and supply disruptions in Venezuela. U.S. crude futures rose 0.2 percent to $58.74 per barrel, holding close to Thursday’s four-month peak of $58.74. Brent was 0.25 percent higher at $67.39.

Today’s expected data include industrial production and Empire State Manufacturing Survey. Linde and Stella-Jones are reporting earnings

Market Snapshot

  • S&P 500 futures up 0.3% to 2,814.25
  • STOXX Europe 600 up 0.2% to 379.13
  • MXAP up 0.7% to 158.86
  • MXAPJ up 0.6% to 524.65
  • Nikkei up 0.8% to 21,450.85
  • Topix up 0.9% to 1,602.63
  • Hang Seng Index up 0.6% to 29,012.26
  • Shanghai Composite up 1% to 3,021.75
  • Sensex up 1% to 38,131.78
  • Australia S&P/ASX 200 down 0.07% to 6,175.17
  • Kospi up 1% to 2,176.11
  • German 10Y yield fell 0.3 bps to 0.083%
  • Euro up 0.2% to $1.1325
  • Italian 10Y yield fell 5.0 bps to 2.147%
  • Spanish 10Y yield rose 0.3 bps to 1.194%
  • Brent futures up 0.5% to $67.57/bbl
  • Gold spot up 0.6% to $1,303.35
  • U.S. Dollar Index down 0.2% to 96.62

Top Overnight News from Bloomberg

  • Chinese Premier Li Keqiang said China will stick to its current targeted economic support strategy and resist the temptation to engage in large-scale stimulus like quantitative easing or a massive expansion in public spending
  • Prime Minister Theresa May kept her deal with the European Union on life support by winning the backing of British politicians to seek a delay to Brexit just 48 hours after her plan looked dead and buried
  • Bank of Japan Governor Haruhiko Kuroda defended the 2 percent inflation target that guides his monetary-stimulus program after the government advocated taking a flexible approach to the goal; The Bank of Japan left its monetary stimulus program unchanged as it downgraded its assessment of exports, factory output and overseas economies
  • A meeting between President Donald Trump and President Xi Jinping to sign an agreement to end their trade war won’t occur this month and is more likely to happen in April at the earliest, three people familiar with the matter said
  • North Korean Vice Foreign Minister Choe Son Hui said Kim Jong Un would decide soon whether to keep talking with the U.S. and maintaining his moratorium on missile launches and nuclear tests, AP reports
  • China won’t resort to using quantitative easing or massive deficit spending in order to support the economy because such approaches would store up problems for the future, Premier Li Keqiang said.
  • The Senate voted to block President Donald Trump’s declaration of a national emergency to pay for a wall at the border with Mexico, setting up his first veto and highlighting a growing willingness by Republicans in the chamber to split with their president
  • Uncertainty over U.S. waivers for buyers of Iranian oil is starting to grip the market again, under very different circumstances than when American sanctions were set to go into effect last year
  • Mario Draghi’s latest stimulus salvo means his successor as European Central Bank chief may not be forced into the kind of monetary policy U-turn he once faced; Draghi has set in place the conditions to keep the euro zone in easing mode until he leaves office
  • One of the potential candidates to succeed Mario Draghi as European Central Bank president is pushing a review of the institution’s monetary-policy strategy to deal with the risk it may never reach its inflation goal
  • OPEC nations have enough spare crude oil to make up for any supply shock from the escalating crisis in Venezuela, the International Energy Agency said

Asian stocks traded mostly positive across the board as US-China trade optimism helped the region shake off the negative lead from the US, where sentiment was subdued by growth concerns following recent discouraging data from China and the reported delay in the Trump-Xi summit. ASX 200 (-0.1%) and Nikkei 225 (+0.8%) were mixed with upside in Australia capped as weakness in mining names and financials offset the continued outperformance in energy, while the Japanese benchmark coat-tailed on recent currency moves. Elsewhere, Hang Seng (+0.6%) and Shanghai Comp. (+1.0%) were higher as overnight trade-related news flow spurred optimism including comments from President Trump that we will have news regarding a China trade deal in the next 3-4 weeks and although he included a ‘one way or the other’ caveat, he suggested that people will be talking about it for a long time and that China has been very reasonable. In addition, Chinese officials also contributed to the trade hopes after the NPC approved Foreign Investment law reforms dealing with forced tech transfers and IP theft which is seen as an attempt to appease US concerns, while Chinese Premier Li noted that China can use reserve requirements as well as interest rates to support the economy and confirmed VAT tax cuts will begin from next month. Finally, 10yr JGBs were relatively flat with demand dampened as focus centred on riskier assets and after the BoJ policy announcement proved to be a non-event in which it maintained policy settings and downgraded assessments on exports and output as expected.

Top Asian News

  • China Vows to Stick to Targeted Stimulus Amid Jobless Pressure
  • King of India Bond Sales Warns of Worst Crisis Since Lehman

Major European indices have remained firm after opening with mild gains [Euro Stoxx 50 +1.4%], continuing from overnight where risk sentiment improved following US-China trade optimism. Sectors are largely in the green, although there is some mild underperformance in healthcare names. Weighed on simultaneously by a downgrade at Citi Group and reports that the Co’s India operations are the focus of a Singapore probe are Wirecard (-9.1%) who are at the bottom of the Stoxx 600, although this was later refuted by the Co. Elsewhere, and towards the top of the Dax, are BMW (+1.0%) who have been in focus after warning of headwinds impacting the sector and reported FY18 revenue slightly above expectations and EBIT margin above target; which subsequently led to short-term volatility in Co. shares. Separately, UBS (-0.9%) are in the red after their annual trade report where the Co. stated that provisions for litigation, regulatory and other matters reduced FY18 operating profit before tax and net profit for shareholders by USD 382mln.

Top European News

  • UBS Setting Aside Just $516 Million to Cover Record French Fine
  • H&M’s Lower Prices Lift Sales as It Narrows Gap With Zara
  • Hedge Funds Fighting Over Interserve Head for Showdown in London
  • Swedbank May Have Handled Over $10 Billion in Suspect Flows

In FX, The Kiwi has rebounded firmly from lows close to 0.6800 vs its US counterpart after a more conciliatory tone from both sides of the US-China trade divide overnight compared to reports circling on Thursday highlighting ongoing issues that remain unresolved and have rolled back the likely date of a Trump-Xi official signing-off Summit. Nzd/Usd is currently towards the top of a 0.6858-24 range, but hampered somewhat by cross-winds as Aud/Nzd consolidates recovery gains above 1.0300 and the Aussie also reclaims lost ground against the Usd to retest resistance ahead of 0.7100.

  • CAD/EUR/GBP – Also benefiting from the Greenback’s broad loss of momentum as the DXY failed to sustain yesterday’s more bullish technical impulses beyond 96.821 and closer to the 97.000 handle. The Loonie is also deriving some impetus from steadier oil prices and could get a helping hand from Canadian manufacturing sales if expectations for a rebound are confirmed. Usd/Cad is hovering just above 1.3300 and back to within striking distance of the 200 DMA. Meanwhile, the single currency continues to try and establish/build a base on the 1.1300 handle, but resistance around the recent 1.1340 high and mega option expiry interest remain formidable barriers to overcome, with 1.9 bn at the big figure and 3.3 bn running off between 1.305-25 at Friday’s NY cut. Turning to the Pound, and a bout of selling saw Cable test underlying bids/support ahead of 1.3200, while Eur/Gbp spiked to 0.8575, but with little obvious in the way of a catalyst and for once relative quiet on the Brexit front the relatively rapid moves have subsequently reversed to circa 1.3275 and 0.8525 respectively.
  • JPY/CHF – Both relatively flat vs the Dollar and still rangebound, as Usd/Jpy meanders from 111.90 to 111.50 and just above the 200 DMA (111.44) in wake of a dovish BoJ policy meeting, as widely anticipated. Decent expiries from 111.50-65 (1.1 bn) could underpin the headline pair, while 112.00 and a Fib at 112.08 are keeping the upside in check. The Franc is even more contained within 1.0045-20 and vs the Eur around 1.1350 ahead of next week’s quarterly SNB policy review.
  • SEK/NOK – The Scandi Crowns looks set to end the week on the front foot having regained the initiative over the Euro and crossed psychological/technical levels, and with some added backing from a US bank advocating long positions via the Eur/Sek cross and Usd/Nok –  see our headline feed for more details.

In commodities,Brent and WTI prices are softer heading into the weekend, a sharp decline this morning saw prices drop significantly below the day’s ranges, with no significant fundamental news behind this. This morning saw the release of the IEA’s monthly report, which maintained the 2019 global oil demand growth forecasts at 1.4mln BPD, which has been supported by strong non-OECD consumption. IEA state that OPEC crude production in Feb was 30.68mln BPD, a decrease of 240k BPD; due to losses in Venezuela and lower output from both Saudi Arabia and Iraq. Adding that preliminary data for February points to a sharp drop in inventories. Looking ahead on the calendar sees the Baker Hughes rig count at 17:00 GMT due to the US time change, where total rigs decreased by 11 to 1027. Gold (+0.4%) is firmer in spite of the improvement in risk sentiment, potentially due to the yellow metal retracing some of yesterday’s decline where it dropped below USD 1300/oz, for reference spot gold is currently trading around USD 1302/oz. Separately, Indian gold demand may drop in May due to restrictions surrounding cash movement an Industry Official has reported. Elsewhere, copper prices improved overnight on the risk sentiment.

Looking at the day ahead, we get February industrial production (+0.4% mom expected), March empire manufacturing (+10.0 expected), January JOLTS report and preliminary March University of Michigan consumer sentiment report (95.7 expected). The ECB’s Rehn is also due to speak while the IEA monthly oil report is due out.

US Event Calendar

  • 8:30am: Empire Manufacturing, est. 10, prior 8.8
  • 9:15am: Industrial Production MoM, est. 0.4%, prior -0.6%; Manufacturing (SIC) Production, est. 0.1%, prior -0.9%
  • 10am: JOLTS Job Openings, est. 7,225, prior 7,335
  • 10am: U. of Mich. Sentiment, est. 95.7, prior 93.8; Current Conditions, est. 112, prior 108.5; Expectations, est. 88.1, prior 84.4
  • 4pm: Net Long-term TIC Flows, prior $48.3b deficit; Total Net TIC Flows, prior $33.1b deficit

DB’s Jim Reid concludes the overnight wrap

Last week I discussed a new box set I’d been watching. Well this week’s evening entertainment has been streamed live from the House of Commons. I even missed a bit of Liverpool’s glorious victory in Munich on Wednesday to keep an eye on the manoeuvrings of our politicians. I’ve always loved politics and was a member of a UK political party as a teenager (partly in a failed attempt to impress a young lady). However nothing has beaten this week for drama, subterfuge and sub-plots. Last night’s votes were slightly on the more tame side but there were still some surprises. The main (and expected) event was the House of Commons overwhelmingly voting (412-202) to extend Article 50 out to June 30th. Earlier, an amendment to enable a second referendum suffered a big defeat (344-85) so we’re a very long way from such an outcome but Mr Corbyn left it firmly on the table in comments after the votes which reflects their strategic position. The more interesting vote was a narrow defeat (314-312) for an amendment that would have allowed Parliament to take control of the process with indicative votes in the last week of March. The government had already promised this in early April if no other deal is reached beforehand so the big difference is timing and the fact that the government and not Parliament will be still be controlling it. The pound had depreciated as much as -0.98% early in the session ahead of the votes, but partially pared its losses to end the day -0.72% weaker versus the dollar. It’s still +1.74% stronger this week as the direction of travel still appears to be toward a softer Brexit and reduced risks of a no-deal outcome.

So what next? It looks likely that Mrs May will bring the 3rd version of the WA to Parliament on Tuesday, ahead of the European summit next Thursday/Friday. If she fails the EU will likely insist on a long extension and then we’ll either move straight to indicative votes or Mrs May will try a 4th time first. There was some evidence yesterday that more Tory MPs and the DUP are engaging with the government to see how they can back the WA. According to Reuters, Attorney General Cox is in active discussions about how the UK could legally and unilaterally exit the Irish backstop if it wanted to in the future. The key will be if anything ends up changing the DUP’s mind. So far there are no firm conclusions but it’s clear discussions are ongoing.

In the world outside of Westminster risk took a bit of a pause for breath last night in the US following what had been a strong start to the week. Indeed on a light newsflow day, the S&P 500, DOW and NASDAQ closed -0.09%, +0.03% and -0.16% respectively after Europe closed higher with the STOXX 600 finishing +0.78%. Banks also had a good day in Europe (+0.68%), boosted by a +2.1bps rise in bund yields and sentiment towards Italy improved as well. Italian banks gained +1.09% and BTP yields fell -5.1bps, helped by optimistic comments from the ECB’s Benoit Coeure who said that Italy is not a threat to the euro area. The VIX held steady around 13.50,within 0.1pts of its year-to-date low, while the same can be said for the MOVE index (+0.7pts yesterday) and less than a point off its year-to-date low. The same situation applies the V2X in Europe, while the CVIX index of currency volatility has actually dropped to its lowest level in 14 months. So it’s very much back to the bottom of the range for volatility across asset classes. Meanwhile, cash HY spreads were bps -5bps and -1bps tighter in Europe and the US while Treasuries were close to flat.

In Asia this morning we’ve had the BoJ meeting where the central bank decided to maintain its policy rates and asset purchases, as was widely expected, while taking a gloomier outlook for the economy. The BoJ said that Japan’s economy continued to expand moderately, but the global slowdown had caused “some weakness” recently in exports and industrial production but added that the global economy would keep growing moderately and in turn support a rising trend in Japanese exports and a further expansion of the domestic economy. In the meantime, Japan’s Finance Minister Taro Aso said that the BoJ should take a flexible view of the 2% inflation target.

Yields on 10y JGBs are up +0.7bps to -0.045%. We should get further clarity on the BoJ’s view of the economy and the BoJ’s likely appetite for flexibility around the 2% inflation target from Governor Kuroda’s presser (06:30 GMT) which would have already started by the time this reaches your inbox. Elsewhere, China’s Premier Li Keqiang said in a speech at the NPC that China will use tools like reserve-requirement ratios and interest rates to support a slowing economy and won’t take the route of monetary easing (QE or massive deficit spending) as such approaches would lead to problems in the future. He also confirmed that announced tax cuts and social security reductions at the NPC would take effect from April 1 and May 1 respectively while adding that China won’t let the major economic indicators slide out of their proper range. Signifying the continued focus of China’s government towards easing credit access for the SMEs, Li Keqiang said that China will take multiple measures to lower the funding cost for SMEs by 1% this year. On the sticking points in the trade negotiations with the US, Li said that China will revise its intellectual property protection law and added that China will “certainly” implement measures to further open up its market.

In other news, as per Bloomberg Mao Shengyong, the spokesman of China’s National Bureau of Statistics attributed the recent weakness in China’s economic data to the Lunar New Year holidays. He said that many factories and companies close near the holidays thereby usually hurting industrial output in the 4 days ahead of Lunar New Year holidays and 15 to 20 days after it. Meanwhile, China also passed a foreign investment law today which will take effect from January 1, 2020. Under the updated new law China will treat all companies registered in China equally, as opposed to the current division between local and foreign businesses, according to lawmakers. Chinese government support will also apply equally to foreign firms, and their applications for operating licenses won’t be treated differently from domestic rivals while forced technology transfer will be banned. Elsewhere, Russian News Agency Tass has reported – citing North Korean deputy foreign minister Choe Son Hui – that North Korea is reviewing plans to suspend denuclearization talks with the US while adding that North Korea’s leader Kim Jong Un will make an announcement about his decision on this.

Markets in Asia are heading higher with China’s bourses leading the advance – the Shanghai Comp (+1.54%), CSI (+1.85%) and Shenzhen Comp (+1.88%) are all up on the back of above mentioned growth supportive speech from China’s Premier Li Keqiang with Trump’s favorable comments on China (mentioned below), likely also playing a part. The Nikkei (+1.02%), Hang Seng (+0.65%) and Kospi (+0.63%) are also up. Elsewhere, futures on the S&P 500 are up +0.24% and 10y treasury yield is down -0.9bp this morning. In the US, markets could experience higher levels of volatility today on account of “quadruple witching.”

The trade headlines yesterday included the news that President Trump and President Xi Jinping’s meeting was likely to be pushed back to April at the earliest according to Bloomberg. Further, late yesterday evening President Trump said that we will probably know in next three or four weeks about possible trade deal with China, thereby seconding the above Bloomberg story. He also added that China has been behaving very responsible and reasonable. Will there be a Brexit or US/China deal first? Risk was a bit weaker when that trade headline emerged although quickly reversed much of it. More durably, the dollar strengthened +0.22% on the day and the offshore yuan traded -0.32% weaker. The prospect of tariffs remaining in place for longer would be bullish the dollar, all else equal. A reminder that Lighthizer sounded a bit more cautious on trade talks following comments earlier this week. Late afternoon Trump reiterated that “we’re doing very well with China talks” and that “we’re getting what we have to get”. However he also added the caveat that we “can’t say if we’ll strike a final deal with China”.

On a more micro note, General Electric’s share price rose +2.96% and as much as +4.79% earlier after the market latched onto the latest guidance from management that cash flow bleed this year will be no more than $2bn. Credit investors also welcomed the news with 2.7% 22s for example -10.5bps tighter. A reminder that it was General Electric that spooked credit markets towards the back end of last year.

While we’re on that subject, yesterday we published a note looking at USD BBB ‘Super Issuers’. In it we find that these issuers are significantly on the rise and have more debt outstanding than ever before. However, the market is no less concentrated and is below the extremes of the early 2000s. That being said, fundamentals for this cohort are trending in the wrong direction. The fact that the majority of issuers appear to be deleveraging or at least still targeting an IG rating should lend some support, but intention and reality do not always turn out to be the same thing. See the link to the report here .

Staying with credit Michal Jezek has just written up DB’s 9th annual bank capital conference that took place on Wednesday. This included an interview with myself and ECB governor Nowotny. See here for the report.

In other news, yesterday’s data didn’t add much to the mix. In the US the latest weekly initial jobless claims print came in at 229k, a shade higher than the 225k expected and up from 223k the week prior. While that is a four-week high, the four-week moving average nudged down to 224k and has now dropped for three consecutive weeks. Meanwhile the February import price index reading came in at +0.1% mom ex petrol (vs. -0.1% expected) – a still benign reading – while March new home sales slumped (-6.9% vs. +0.2% expected), albeit offset by upward revisions in the prior two months.

In Europe the final February CPI revisions for both Germany (+0.5% mom) and France (+0.1% mom) were left unchanged versus the initial estimates. As you’ll see below we get revisions to the broader Euro Area reading today.

Outside of the usual Brexit drama, the highlights from the scheduled data releases today are the final February CPI revisions for the Euro Area (no change in the +1.0% yoy core expected), and February industrial production (+0.4% mom expected), March empire manufacturing (+10.0 expected), January JOLTS report and preliminary March University of Michigan consumer sentiment report (95.7 expected) in the US. The ECB’s Rehn is also due to speak while the IEA monthly oil report is due out.

3. ASIAN AFFAIRS

i)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED UP 31.07 POINTS OR 1.04% //Hang Sang CLOSED UP 160.87 POINTS OR 0.56%  /The Nikkei closed UP 163.83 POINTS OR 0772%/ Australia’s all ordinaires CLOSED DOWN .03%

/Chinese yuan (ONSHORE) closed UP  at 6.7134 AS TRUCE DECLARED FOR 3 MONTHS /Oil UP to 58.62 dollars per barrel for WTI and 66.92 for Brent. Stocks in Europe OPENED GREEN 

ONSHORE YUAN CLOSED UP // LAST AT 6.7134 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.7145 / TRADE TALKS NOW ON/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

3 a NORTH KOREA/USA

 

 

 

i)North Korea/

Bankrupt North Korea is mulling the suspension of nuclear talks with the USA. Kim will announce his decision shortly.  However the sanctions are killing the country.

(courtesy zerohedge)

North Korea Mulls Suspending Nuclear Talks, Kim To Announce Decision Shortly

Shortly after a de minimus reaction to the Bank of Japan’s economic downgrade, JPY surged against the dollar on headlines from Russian news agency Tass that North Korea is mulling suspending denuclearization talks with the US.

TASS reports, citing Deputy Foreign Minister Choe Son Hui at a press conference in Pyongyang, that North Korea is mulling suspending denuclearization talks with the US.

We have no intention to make concessions to the US requirements [put forward at the Hanoi summit] in any form, much less the desire to conduct such negotiations,” said Choi Son-Hee.

North Korea’s leader Kim Jong Un will make an announcement on his decision about the nation’s further plans after the failed talks in Vietnam, Tass says.

At the same time as these headlines hit, Reuters reports that Chinese Premier Li Keqiang , coincidentally, called for “patience in dealing with Korean peninsula issues,” adding that “China’s stance on denuclearization in North Korea is unchanged.”

Li urges “promoting dialogue between North Korea and the U.S. toward eventual outcome that all parties would like to see.”

Coordinated?

Safe-haven bid for Yen as carry traders derisk (perhaps as first in line of any missile tests)…

And cue the “fire and fury” tweet from President Trump.

end

3 b JAPAN AFFAIRS

3 C CHINA

China/Last night:

The plunge protection team abandons the Chinese stock market.  The small cap Chi Next has seen the last 3 days of notable absence from the PPT

(courtesy zerohedge)

ChiNext Collapse Continues As China’s “National Team” Abandons Investors

After 10 straight days of dip-buying pandemonium in Chinese stock markets – extending gains for small caps from the start of February to +46%! – the last three days have seen a notable absence of the “National Team” rescue bid sparking a 9% collapse in ChiNext…

However, while ChiNext remains the world’s best-performing equity market in 2019, Bloomberg reports that there have been hints that officials don’t want a wild rally, and state media reported that the regulator warned brokers on risks of over-the-counter margin lending.

China’s biggest state-owned brokerage also made a bearish call on shares of a state-owned insurer last week, a move interpreted as a sign the government wants things to slow down.

“This will certainly hurt the market,” Ken Chen, a Shanghai-based analyst with KGI Securities Co., said of insider selling.

“Some retail money will run for the exit after the shareholders’ plans to cut stakes, and that will deplete the upward momentum in stocks.”

Insiders were already concluding it was a good time to exit, with plans to sell a total 16 billion yuan ($2.4 billion) last week alone, the most since August, according to China Merchants Securities.

“Many shareholders of listed firms are cash-strapped,” said Shen Zhengyang, a Shanghai-based strategist with Northeast Securities Co.

“Now with the stock gains, they can finally cut their holdings and use the money to repay loans.”

Finally, Bloombergnotes that Further clues on the market’s direction could come Friday, as focus turns to Premier Li Keqiang’s press conference at the close of the annual National People’s Congress in Beijing.

.END

The ever changing time line of the Trump trade deal with China

(courtesy Mish Shedlock/Mishtalk)

The Ever-Changing Time-Line Of Trump’s Trade Deal With China

Authored by Mike Shedlock via MishTalk,

Trump has changed his tune on a trade deal with China so many times it’s hard to count.

  1. In December, Trump gave China 90 days to conclude a deal Otherwise. Trump said he would boost tariffs on $200 billion of Chinese goods to 25% from the current 10%.Those 90 days ended March 1.
  2. On December 31, I noted Trump Hails “Big Progress” on Trade Deal With China. I commented “Supposedly there is ‘big progress’ on a comprehensive trade deal with China. Color me skeptical.”
  3. On January 19, I noted China Pledges US Buying Spree to Reduce Trade Surplus With US to Zero By 2024. I commented “In discussions that are not yet public, and will likely be empty promises, sources say China Offers a Path to Eliminate U.S. Trade Imbalance.”
  4. On February 22, the Washington Post reported Trump says he expects to meet with China’s Xi and finalize new trade deal but Trump would not rule out extending the deadline beyond March 1.
  5. On February 24, Trump Tweeted there was “substantial progress on intellectual property” and suspended tariffs.
  6. On February 25, I noted Hooray! “Substantial” Progress With China (Just Don’t Ask Where) in response to Trump’s Tweets.
  7. At the end of February, Trump expected a small delay in signing.
  8. On March 2, I noted Trump Assails WTO “Straitjacket”, Attempts Pocket Veto of Entire Organization.
  9. On March 12, the Washington Post stated U.S. Trade Representative Robert E. Lighthizer told the Senate Finance Committee “Our hope is that we are in the final weeks” of negotiations. However, Schumer said on the Senate floor, “It is abundantly clear that China is playing us.”
  10. On March 13, Trump stated that he is in No Rush to Complete China Trade Deal. “I think things are going along very well – we’ll just see what the date is,” Trump told reporters at the White House.

Drum Roll Please…….

Today, Bloomberg reports China and U.S. to Push Back Trump-Xi Meeting to at Least April

The key words here are “at least” April. Lighthizer warned ‘major issues’ remained outstanding in talks.

90 Days Till Who Knows When

We have gone from the certainty of “90 days or else” to canceled tariffs and who knows when.

As I said at the outset, there will be a deal, just don’t expect much substance to it or for China to honor it if there is.

Meanwhile, I am sure a pause in Tariffs and a delay in the deal suits China just fine.

For the record, I think the pause in tariffs is a good thing because tariffs are a bad idea in the first place. US farmers were getting killed by China’s retaliations.

Any deal that eliminates tariffs and retaliations will be a good thing, even if it otherwise accomplishes nothing.

 

end

Interesting: Chinese Premier Li vows no massive stimulus despite the fact that Beijing has already launched its massive QE

(courtesy zerohedge)

China Premier Vows No Massive Stimulus As Beijing Launches Massive Stimulus

When it comes to China, the past decade revealed two things beyond a shadow of a doubt: i) all of the country’s economic data is utterly meaningless as it is entirely fabricated (in this measure it is not much different from other developed nations), goalseeked to fit a specific political narrative, and ii) Beijing has an annoying Trotskyite habit of doing precisely what it vows not to do or accuses others of doing.

A good example of the latter was again observed last night, when Premier Li Keqiang said that China will stick to its current targeted economic support strategy and resist the temptation to engage in large-scale stimulus like quantitative easing or a massive expansion in public spending.

 

Li Keqiang on March 15.

“We certainly need to take strong measures to face the downward pressure,” Li told a news conference Friday at the close of the annual National People’s Congress session in Beijing. “An indiscriminate approach may work in the short run but may lead to future problems. Thus it’s not a viable option. Our choice is to energize market players.

This is ironic because just over a month ago, China quietly launched a quasi-QE program in the form of the PBOC buying perpetual bonds issued by local banks, to flood the system with liquidity and achieve the same end goal as more conventional quantitative easing, and which Rabobank described as a means to keep China’s “Ponzi scheme afloat.”

Just as ironic was Li’s vow not to flood the economy with stimulus, read new debt, one month after the PBOC flooded the economy with a record amount of new debt. Of course, this being China, nobody inside the country will dare to call out Beijing on its hypocrisy for fears of immediate incarceration, as for outside economists, all they care about is to make sure that China will continue its massive reflation of both the domestic and global economy, just to make sure their own optimistic forecast are met, even it means even more pain down the road.

It wasn’t just Li’s double-faced narrative that dominated the last day for the NPC: China’s annual gathering of leaders that started last week has delivered a raft of policy initiatives, while maintaining a focus on using tax cuts and other “targeted” measures to address the weakness in output, Bloomberg reports. Sparking fears in Beijing – which is mostly terrified of a lower/middle class uprising resulting from mass layoffs – China’s deepening slowdown has pushed unemployment higher, intensifying pressure on that calibrated stimulus strategy.

Sure enough, Li reiterated the government’s new emphasis on preventing large-scale job losses in the wake of the slowdown, a day after data showed the unemployment jumped to 5.3 percent in February, the highest level in two years.

Taking a cue from the Trump playbook, Li said the “employment first” strategy put jobs on the same level of priority as fiscal and monetary policy. He also elevated the number of jobs the economy will create “in practice” this year to 13 million from the 11 million target announced last week in his economic policy report although amid reports of mass layoffs in trade-linked companies, it is not exactly clear how Beijing will force companies to hire more people than they are currently firing.

Meanwhile, as part of a separate massive fiscal stimulus, the tax cuts announced last week could exceed the proposed plan of 2 trillion yuan ($298 billion) this year. Included in that total is a cut of 3% to the top bracket of value-added tax aimed at benefiting the manufacturing sector. Policy makers have also cut bank reserve requirements multiple times since last year, releasing liquidity for lending. Li indicated use of that tool would continue.

Separately, Li also hinted at more wholesale monetary easing: “We can use price tools such as reserve-requirement ratios, interest rates,” Li said. “We are not going toward monetary easing, but effectively supporting the real economy.”

The bottom line, according to Li: keep the economy stable and within its historical range: “We won’t let the major economic indicators slide out of their proper range.” Supposedly this means Beijing will be forced to hire even more excel goalseekers to make sure “data” does not deviate from its political mandate.

Curiously, the record size of the tax cut wasn’t matched by an equivalent expansion in the size of the government’s targeted budget deficit, which was nudged wider to 2.8% of gross domestic product from 2.6% in 2018. As part of measures to plug the gap, Li announced that the government has already raised 1 trillion yuan in transferred profits from state-owned enterprises and banks.

How will the government achieve this seemingly impossible mathematical quest? Simple: by admitting that China is a ponzi, where the profits generated from new debt are recycled into the government:

“The central government is determined to ask specific financial institutions and some state-owned enterprises to increase the profits they turn into the national treasury,” Li said. “We’ll also take back the idle funds accumulated over a long time.”

* * *

Besides unveiling how China hopes to kick the financial can for a few more years, Li also touched on some other key topics such as U.S.-China ties, where Li stuck to the message China has pushed for months, reiterating that there were “broad common interests” between the two sides and that they should seek “win-win” outcomes. He said that trade talks between were still underway and that China hoped that “good outcomes will be delivered out of those consultations.”

Li also responded to criticisms from the U.S. and other Western countries that Chinese tech giant Huawei Technologies Co. helps the Chinese government spy. Chinese national security laws require that any organizations must cooperate with national intelligence work – raising fears that the government could lean on Huawei to compromise a telecommunications network in another country.

“Let me tell you explicitly. This is not consistent with Chinese law, this is not how China behaves,” Li said. “We did not do that in the past and will not do that in the future.”

Coming from a man who vowed not to engage in massive stimulus just as China is engaging in massive stimulus, the last statement is hardly a surprise.

 

4.EUROPEAN AFFAIRS

A good commentary from Alasdair Macleod as he discusses the new QE model to be introduced by the ECB in September. He states that this stimulus is akin to adrenaline being administered to a dead horse.  The European economies are stalling and the rising inflation will kill off the Euro and its economy for good

(courtesy Alasdair Macleod)

EU Monetary & Economic Failures

 

Authored by Alasdair Macleod via GoldMoney.com,

The monetary, financial and political weaknesses of the EU are about to be exposed by the forthcoming global credit crisis.

This article assumes the combination of end of credit cycle dynamics and the rise in trade protectionism in 1929 is a valid precedent for gauging the scale of a developing global credit crisis today, as described in my earlier article published here. Then, it was heavier tariffs coinciding with a less destabilising inflation cycle than we face today, a combination that saw stock markets collapse. Today, we have the additional factors of far greater monetary inflation, far higher levels of government debt, low savings coupled with record consumer borrowing, and unbacked fiat currencies likely to lose purchasing power instead of gold-backed currencies which increased their purchasing power.

Declining international trade has already become evident in only a few months, and prescient observers detect early signs of a rapidly developing global recession. In response, the ECB has announced it will target lending to non-financial businesses with its TLTRO-III programme from September onwards.

The larger problem is the crony capitalists in the EU have captured the EU institutions, including the ECB, and will demand ever-accelerating monetary inflation. I have chosen to examine the consequences for the Eurozone, which is one of the more vulnerable economic and political constructs likely to be exposed in the severe economic downturn the world faces today.

The monetary failure

Last week, the ECB announced the reintroduction of targeted long-term refinancing operations for the third time. TLTRO-III is scheduled to start from next September. The idea is to make yet more money available for the banks at attractive rates on condition they increase their lending to non-financial entities.

The policy is justified because the ECB sees growing signs the Eurozone economy is stalling, possibly badly. The weaker Eurozone economies are moving into outright recession, and Germany’s motor exports appear to have dramatically slowed, putting a constraint on her whole economy.

The ECB’s reintroduction of TLTRO is an offer of yet more monetary and credit inflation, despite the evidence that unprecedented waves of monetary inflation in the last ten years have failed in all the objectives for which they were designed, except two: governments have continued to get the funds to spend without meaningful restraint, and insolvent banks have been preserved.

Only two months after its asset purchase programme officially ended, the inflationists are at it again. But one wonders why the ECB bothers to delay TLTRO-III until September. If it is such a good thing, why not introduce it now?

There is another explanation, and that is the ECB is intellectually adrift with no economic compass. We do not know how many economists and monetary specialists are employed in the Eurosystem, which includes the ECB and the regional central banks, but they are certainly not economists, otherwise they would understand money. They may be technicians, which is not the same thing. If they were economists, or more precisely properly schooled in the human sub-science of catallactics (the theory of exchange ratios and prices) they would more fully appreciate the consequences of monetary inflation. They would understand Bastiat’s broken window fallacy: it’s not what you see, but what you don’t see. They see the supposed benefits of inflation but appear blind to the strangulating burden imposed on ordinary people who make up the productive economy.

The destruction and transfer of wealth from Eurozone savers to debtors and from the general public to the banks, government and large corporations are the principal and hidden consequences of monetary inflation. Monetary stimulation is progressively destroying Eurozone economies, which coupled with high taxes and excessive regulation has turned the Eurozone into one massive economic zombie. Any student of catallactics learns this early on. Yet, state-employed economists ignore the mathematics of dilution and are unaware of the changes in relative values people place on an unbacked currency, when they finally realise what the central bank is doing to it.

The ECB’s functionaries are similarly ignorant of catallactics as are their confrères in the other major central banks, but that must not excuse them from ignoring the contradictions inherent in their actions. They wield power, and that has responsibilities. Instead, they are trying for a third time a policy, that even if it appears to briefly succeed, emasculates the Eurozone’s economy even more.

Pumping yet more credit into the Eurozone is as effective as giving adrenalin to a dead horse. Lack of credit is not the problem. Put simply, there is a global momentum of economic contraction evolving, which any business and lending banker would be foolish to ignore. There is a developing crisis, the consequence of earlier monetary inflation in the credit cycle. Economic actors may not understand the origins of the crisis, but we can be certain they are becoming acutely aware of its looming presence. And as the crisis rapidly develops, those that require additional loans will already be insolvent.

The signal sent by the ECB to lending-bankers is likely to be misinterpreted when credit contraction is the looming threat: if TLRTO-III is the smoke, there must be a fire, possibly out of control. Better surely to call in existing loans to businesses rather than waiting to be repaid from profits unlikely to materialise. An encouragement to lend early in the credit cycle is more effective and less likely to be misunderstood than a similar encouragement later in the credit cycle. This is why a renewed TLTRO policy will almost certainly fail.

The inability of bureaucrats, with their heads buried in spreadsheets, to appreciate the role of human psychology is not the ECB’s only failing. Its executives do not even understand what interest rates represent, thinking it is simply the price of money. This is why it believes in keeping interest rates suppressed as a means of increasing credit. Earlier in the credit cycle, rate suppression does generate some credit expansion, mainly in financial rather than non-financial activities, because lower interest rates lead to higher prices for financial assets. That is basically a spreadsheet, almost non-human function. Large industrial corporations are opportunist, borrowing to fund buy-backs and to take over weaker rivals. Smaller and medium-sized business borrowers are usually offered credit only later in the cycle, when it is a mistake to accept it.

Consequently, in a zombie economy, such as that of the Eurozone, the only borrowers are wealth-destroying, socialising, debt-entrapped governments, taking full advantage of the Basel accords, which rates them for lending banks’ purposes as riskless borrowers.

More on the true role of interest rates

Interest is not the price of money. It is a reflection of the difference between future values compared with present values. It has its origin in the human expression of time-preference. When a businessman agrees loan terms with a banker, they should reflect existing time-preference, so as to defer some consumption sufficient to fund investment. Anything else is a distortion with Bastiat-like consequences. Central banks have destroyed the basic function of capital intermediation based on time-preference by replacing savers with money and credit inflation as the principal source of investment capital.

This was wished for by Keynes in his General Theory, published in 1936. He wanted to see savers euthanised (his word) and for the state to provide the necessary capital to businessmen. He expected the entrepreneur to accept state direction of capital. Entrepreneurs “who are so fond of their craft that their labour could be obtained far cheaper that at present” should move from a risk-based approach to business to a socialising function.

Keynes’s wish is granted posthumously, and ordinary people in the Eurozone and elsewhere are paying for it. Economic strangulation and wealth destruction are the consequence. Functionaries such as Mario Draghi and his fellow directors at the ECB are fully committed to pursuing these Keynesian objectives. Having promised their political masters economic salvation on Keynesian principals, they have delivered instead the Keynesian dream, but at the expense of the economy.

Yet, the deferral of TLTRO-III to September suggests that in the back of their collective minds, the panjandrums at the ECB suspect they may be on a path to perdition. Or perhaps it is the influence of the few sound-money men left at the Bundesbank, across the road in Frankfurt, whose families suffered two currency destructions in the twentieth century and vowed never again.

But even they have been silenced. The protests against the ECB in the German and European courts are in the past. If, as this writer expects, the global economy proves to be on the edge of an abysmal credit crisis, there will be no meaningful objection to a further acceleration of monetary inflation to the point where the euro becomes worthless. If so, Mario Draghi will be identified by future generations as a latter-day Rudolf Havenstein, who famously printed the Reichsmark out of existence.

Unlike the Reichsmark, the euro is a cut-and-shut of a number of fiat currencies with very different time preferences. A knowledge of catallactics would have advised against its creation, proof if it was needed of institutional ignorance in matters of money and exchange. If its origin had been one currency, we could expect its demise to follow the path of all fiat currencies in the past. A single state granting itself the sole right to issue the medium of exchange can never resist the temptation to use it as a source of finance until its destruction. But the euro is a compromise between states with track records of widely different rates of inflation. What suits Germany does not suit Italy. The euro could face a quicker destruction, simply by the Eurozone falling apart.

However, Germany and a few Northern states like her appear trapped, this time through TARGET2 imbalances whereby the Bundesbank is owed approaching a trillion euros by the system. Inflation of money and credit, ultimately the cause of these imbalances, has taken the ECB beyond a point of no return. Inevitably, at some future point, ordinary people will replace their wishful thinking, that the ECB and the national central banks have control over the purchasing power of the euro, with a growing realisation that they don’t. And when they awaken to that reality, they will dump all euros surplus to their essential requirements.

We know that attempts by the authorities to side-step successive credit crises ultimately fail, and it is in that light we should look at TLTRO-III. We must conclude that it is a diversion, window dressing for the shop-front of a failing ECB. It will achieve nothing, because the banks do not want to lend to non-financials, with the exception perhaps of the most credit-worthy large corporations, the corporations that have the political class in their pockets. It is not just the ECB following economically destructive policies, but an unholy alliance between big business and politicians, which is what Brussels and the ECB is all about.

Crony capitalists love inflation

It is a good rule of thumb to reckon that GDP is split 20% in favour of large businesses and 80% in favour of small and medium-size enterprises. The 20% employs armies of lawyers and lobbyists for the explicit purpose of influencing politicians and for the implied purpose of restricting competition. It is not widely appreciated that the European Union is a partnership between these crony-capitalists and the political class.

Europe has a long history of powerful industrial dynasties supporting the political class. This crony capitalism, the true source of much social discontent, is a feature of governments everywhere, but it is perhaps embedded in the EU more deeply and insidiously. An important part of this relationship is the profits generated through monetary inflation.

The most outstanding example pf profiteering from inflation was probably that of Hugo Stinnes in Germany, who a hundred years ago was a passionate supporter of the Reichsbank’s inflationary policies. Stinnes used inflation to build further his pre-war empire based on coal, shipping and electricity generation. By 1923 Stinnes’ interests consisted of roughly 4,500 enterprises, producing nearly 20% of Germany’s industrial output. By borrowing in depreciating Reichsmarks he obtained through exports foreign currencies backed by gold, with which he was able to pay off his heavily devalued Reichsmark debts. He earned the soubriquet Inflationskönig. Stinnes died in April 1924, and his empire collapsed shortly afterwards, though a much-reduced Hugo Stinnes Schiffart GmbH still exists.

Stinnes understood how to benefit from inflation, as do the establishment businesses in the Eurozone today. Large corporations, very often with their own finance arms, have direct or indirect access to the ECB’s largess, borrowing at close-to-zero rates to finance their ambitions. Compared with the relatively sound German mark, today’s large German manufacturers must love the euro.

While big business gains its financing advantages against its smaller competitors, the bulk of any economy is not the large crony-capitalistic organisations, but the small and medium size businesses that make up 80% of any economy’s GDP. For banks these are risky customers, relatively so compared with lending to large corporations. As Stinnes discovered, the relationship between big business, the banks and SMEs effectively transferred wealth from the latter to him through monetary debasement.

As surely as the end of the 1920-23 inflation killed off the Stinnes empire, the end of monetary inflation in the Eurozone will kill off the large European multinationals. But now that the crony-capitalists face a contraction in global trade, they are likely to agitate for yet more inflation. They will say they need a competitive euro to offset declining world markets, so the ECB must take steps to ensure the euro depreciates more rapidly against the US dollar. They can only dream of the profits and power earned by Stinnes from hyperinflation, before Hjalmar Schacht ruined everything for him by stabilising the new mark. But they are making a mistake: borrowing euros to earn fiat dollars to eventually pay off devalued euro debts is not the same as borrowing Reichsmarks to accumulate gold-backed foreign currencies.

The major banks are in trouble

Despite the ECB’s subsidy of the Eurozone’s banking system, it remains in a sleepwalking state similar to the non-financial, non-crony-capitalist zombified economy. Gone are the heady days of investment banking. There is now a legacy of derivatives and regulators’ fines. Technology has made the over-extended branch network, typical of a European retail bank, a costly white elephant. The market for emptying bank buildings in the towns and villages throughout Europe must be dire, a source of under-provisioned losses. On top of this, the ECB’s interest rate policy has led to lending margins becoming paper-thin.

A negative deposit rate of 0.4% at the ECB has led to negative wholesale (Euribor) money market rates along the yield curve to at least 12 months. This has allowed French banks, for example, to fund Italian government bond positions, stripping out 33 basis points on a “riskless” one-year bond. It’s the peak of collapsed lending margins when even the hare-brained can see the risk is greater than the reward, whatever the regulator says. The entire yield curve is considerably lower than Italian risk implies it should be, given its existing debt obligations, with 10-year Italian government bonds yielding only 2.55%. That’s less than equivalent US Treasuries, the global risk-free standard.

Government bond yields have been and remain considerably reduced through the ECB’s interest rate suppression and its bond-buying programmes. The expansion of Eurozone government debt since the Lehman crisis has been about 50% to €9.69 trillion. This expansion, representing €3.1 trillion, compares with the expansion of the Eurosystem’s own balance sheet of €2.8 trillion since 2009. In other words, the expansion of Eurozone government debt has been nearly matched by the ECB’s monetary creation.

Bond prices, such as that of Italian 10-year debt yielding 2.55%, are therefore meaningless in the market sense. This has not been much of an issue so long as asset prices are rising and the global economy is expanding, because monetary inflation will keep the fiat bubble expanding. It is when a credit crisis materialises that the trouble starts. The fiat bubble develops leaks and eventually implodes.

Now that the global economy has stopped expanding and is on the brink of recession, under these changing conditions the monetary, systemic and economic dangers facing the Eurozone are rapidly rising. This is a problem beyond the ability of the ECB to contain. Politicians and their institutions in Brussels seem unaware of the approaching storm, but when they do become aware, they will turn to group-think for protection. Like fish in a tightening bait-ball, they actions are set to accelerate their own demise.

The start of EU disintegration

There can be no doubt that the ECB has so far only managed to prevent a financial and systemic crisis materialising because of the background of a worldwide monetary and credit expansion inflating financial asset prices. A global background of rising asset values was necessary for the consequences of the Greek financial crisis to be absorbed without destabilising the whole caboodle. If it had happened during a global credit crisis the outcome would have been different.

Inevitably, at some stage the euro’s purchasing power will begin to fall under the weight of accelerating monetary inflation and the demands from crony-capitalists for a competitive exchange rate. Rising bond yields will be the inevitable outcome, requiring yet more QE from the ECB. It takes little imagination to realise that in an environment of rising bond yields and falling asset values the Italian government and its economy will be exposed to intractable difficulties. The difference from the on-going Greek crisis is Italy’s economy is nearly ten times the size of that of Greece. So far, aided by inflating markets, there has not been a full-blown crisis. In a vicious bond bear market of the scale likely to accompany the next credit crisis, Italy alone could crash the whole Eurosystem.

That could happen by the end of this year, because when things go wrong the pace calamities usually accelerates. Today, the EU is threatened with Brexit, which at the time of writing is yet to be resolved. But there’s a significant possibility Britain will leave the EU without a comprehensive trade deal and without paying all the money allegedly owed to the EU. The money will have to be made up by the other members, principally by Germany, France, Italy and Spain, being the largest remaining economies. Furthermore, the UK’s economic policy is bound to focus on being a competitive regional entrepôt for global trade, enhancing her economic performance relative to a stultifying EU. Existing political tensions within the EU are certain to escalate as the EU falls behind, and Brussels, hooked on profligacy, for the first time faces budget cuts.

It is becoming increasingly obvious to independent observers that the EU supra-national socialising model is failing structurally, politically, economically and financially. The next credit crisis, which appears to be evolving from the seeds of today’s events, looks set to end the European dream.

.END

DENMARK

Gatestone comments on the failed immigration policies and how this is destroying the country of Denmark

(courtesy Gatestone Institute/Hasselbalch)

Denmark In A State Of Unreported Collapse

Authored by Ole Hasselbalch via The Gatestone Institute,

  • The official statistical definition of “descendants” includes only the first generation after the person who migrated to Denmark. So the official figures do not show the real picture.
  • If the population statistics continue to follow that pattern, ethnic Danes — whose birthrate is far lower than that of non-Western immigrants — will become a minority sometime around the year 2065. According to a 2017 report by Statistics Denmark, only about half of non-Western immigrants between the ages of 16 and 64 are employed (53% of men and 45% of women).
  • In 2017, a third of all the people provided for by Denmark’s basic social-welfare system were immigrants, which constitutes a rise of 82% in a mere seven years. These figures show that the public expenses connected to immigration will, in the long run, bring the welfare state to an end.

Contrary to misleading media reports, Denmark is not forcing suffering refugees to live on a remote island. Only foreign criminals “convicted of crimes and slated for deportation under the terms of their sentences” will be housed there. And they will even be given ferry rides to the mainland, under the excuse that this is necessary due to “international conventions”.

The media portrayal of Denmark as a country hostile and inhumane to migrants is misleading, if not completely false.

One reason for the inaccurate picture is that it is painted by journalists’ political bias. Another is that trustworthy official Danish statistics on the country’s immigration problem are both difficult to find and even harder to interpret. A further problem is a lack of reliable research, at best; and purposely distorted data, at worst.

The following breakdown illustrates that rather than being more relatively free of the consequences of mass migration than other European countries in general, and Scandinavian countries in particular, Denmark is in a state of societal collapse. In spite of Copenhagen’s many laws that govern migration and affect immigrants, the Danish people have been experiencing a major cultural and political shift in their life as they have traditionally known it.

Population Projections

In 1960, the population of Denmark was 4,580,708. Today, that number stands at 5,768,712. This growth appears to be largely due to immigration.

In 2016, Statistics Denmark projected that the country will have 507,000 “non-Western” immigrants by the year 2060, and 342,000 “non-Western descendants.”

“Descendants”, however, include only the first generation after the person who migrated. So the official figures do not show the real picture.

In 1989, a private organization, “The Danish Association”, published an alternative projection as part of a special edition of the group’s periodical Danskeren(September 1989, p. 3, not available on the internet.) The article, published anonymously — revealing the degree of political correctness and self-censorship required in Denmark even then — predicted that immigration would remain relatively static, regardless of foreseeable insufficient attempts to tighten legislation. This prediction has turned out to be almost correct up to now.

The article predicted about 1.1 million immigrants around 2020, in accordance with what can be seen in current statistics if you include the third generation of newcomers as well as the probable number of unregistered foreigners.

If the population statistics continue to follow this pattern, ethnic Danes — whose birthrate is far lower than that of non-Western immigrants – will become a minority sometime around the year 2065. This is in fact quite likely to happen, as immigrants defined as “refugees” continue to enter the country; and others, such as arrivals of family members and “walk-ins,” are rarely able to be returned to their countries of origin.

Employment and Social Welfare

According to a 2017 report by Statistics Denmark, only about half of non-Western immigrants between the ages of 16 and 64 are employed (53% of men and 45% of women). When broken down into countries of origin, however, major differences among migrants were revealed — with the employment rate being particularly low among those hailing from Iraq, Lebanon, Somalia and Syria.

Analyzing Statistics Denmark data, the Danish Employers Confederation revealed that in 2016, 41.5% of non-Western immigrants were on welfare, while only 17.5% of ethnic Danes were supported by the same benefits. In 2017, a third of all the people provided for by Denmark’s basic social-welfare system were immigrants, which constitutes a rise of 82% in a mere seven years.

These figures show that the public expenses connected to immigration will, in the long run, bring the welfare state to an end.

Education

According to the same 2017 Statistics Denmark report, 49% of male non-Western descendants, and 70% of female non-Western descendants, completed an education in an employable field, compared to 73% male ethnic Danes and 81% female ethnic Danes.

In addition, ethnic Danish children scored higher on final exams than immigrants’ children and their first-generation descendants (grades of 6.7 for boys and 7.4 for girls, compared to 5.3 respectively 5.9 for non-western first-generation descendants). Those who scored lowest were first-generation descendants of Turkish and Lebanese immigrant parents.

2018 report by the Danish Ministry of Education found a similar difference even among third-generation descendants of migrants. The study was disputed, but the factual results stand. They indicate that many of the long-term descendants of non-Western immigrants will have difficulties satisfying the demands of a modern, highly industrialized Western society.

Unfortunately, reports in Denmark increasingly end up as this one did: If officials publish something that contradicts the fairy-tales of the do-gooders, journalists will take action and scare the transgressor — so he will rephrase what he said without directly correcting it.

The Economy

According to a February 2018 Danish Finance Ministry report, the government’s net annual expenditure on non-Western immigrants in 2015 was 36 billion Danish kroner — approximately $5 billion USD. As there are approximately 5 million ethnic Danes, the taxpayer cost borne by each individual, in effect, came to $1,000 per year, or $4,000 for a family of four.

That figure, however, only refers to public budgets directly related to immigrants. It does not include the additional indirect public funds spent on law enforcement, schools, social security administration and other ancillary matters, due to the presence of non-Western immigrants.

It will not be possible in the long run to finance these rapidly growing expenditures.

Crime

According to the Statistics Denmark report, the crime rate among in 2017 was 35% higher among non-Western male immigrants and 145% higher among male descendants of non-Western immigrants than in the Danish male general population. It should be noted that the figures are misleading, since third-generation descendants of immigrants are counted as Danes also in this context. Male descendants of immigrants from Lebanon – many of whom were, according to the report, stateless Palestinians — followed by male descendants of immigrants from Somalia, Iraq, Pakistan, Morocco and Syria — rated the highest for crime.

Polls

Polls have been taken among immigrants. Examples: In 2006 young adult Muslims in Denmark proved to be more religious that their parents; half of them even thought that freedom of speech should give way for consideration of religious rules and traditions (reported in Jyllands-Posten 21/5 2006). Only 59% of the Muslims though that the constitution alone should be the basis for Danish legislation. More than a third of the Muslims in Denmark felt more connected to their country of origin than to Denmark (Jyllands-Posten 13/5 2006). Four out of 10 boys of Turkish and Lebanese background expect their mother to be at home to take care of family and children (Jyllands-Posten 12/11 2008). About half of the Muslims polled thought that Israel has no right to exist. Other polls show the same depressing picture.

Political Fallout

Do not be fooled by the much-publicized burqa ban that went into effect in Denmark in August 2018. For one thing, it has rarely been enforced — only 13 fines in half a year. Moreover, those who wish to oppose the idea of equality between men and women are free to go to countries where such dress-codes are welcomed.

Do not trust other media stories running along the same lines, either. Suffering refugees are not forced to live on a remote island. Only foreign criminals“convicted of crimes and slated for deportation under the terms of their sentences” will be housed there. And they will even be given ferry rides to the mainland, under the excuse that this is necessary due to “international conventions”.

Refugees are not “stripped” of their valuables at the border. Jewelry and assets exceeding a value of 10,000 Danish kroner ($1,500 USD) have to be handed in to the authorities to help pay for those seeking asylum. Just as Danes do not get social welfare money if they have valuables that enable them to provide for themselves. The actions by the border-control authorities on this are subject to control by the courts.

Other examples of media disinformation on Denmark abound.

The political climate in Denmark is such that even Prime Minister Poul Schlüter (served 1982-1993), a conservative, at a time when there was a discussion in 1989 of reversing the then recently-passed catastrophic immigration legislation, was prevented by the private but heavily subsidized organization Danish Refugee Council from meeting with a representative of the most prominent anti-immigration organization.

Most of all, due largely to the left-wing media, most Danes fail to understand how serious the problem is that the country is facing from the influx of non-Westerners, whose children and grandchildren in unsettling numbers do not appear to be adopting Danish culture and values, and who seem to resist assimilation. It is thus highly unlikely that any political party that opposes immigration will find support among voters to influence legislation enough to meet the country’s urgent needs.

end

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

Iran

Iran holds massive drone drills officially named “Way to Jerusalem” and this is alarming Israel

(courtesy zerohedge)

 

END

War is coming in the middle east:

(courtesy Michael Snyder)

World War 3 Coming? Israel On Brink Of War With Hamas, Hezbollah, Syria, & Iran All At The Same Time

Authored by Michael Snyder via The Economic Collapse blog,

On Thursday, rockets were fired at Tel Aviv for the first time since 2014, and Israel responded by hammering Hamas with airstrikes.  This latest exchange has brought Israel closer to another war with Hamas than ever.  But as you will see below, Israel is also on the brink of war with Hezbollah, Syria and Iran.  And on top of everything else, the most pivotal election in Israel in many years is on April 9th.  If more rockets are fired at Tel Aviv, Prime Minister Benjamin Netanyahu cannot afford to look weak because that could cost him a lot of votes in this very tight election.  But he must walk a very fine line, because a military response that is seen as too harsh could potentially spark a major regional conflict.

Everyone knows that Israel is simply not going to tolerate rockets being fired at Tel Aviv, and so it was quite a shock to learn what had happened on Thursday.  The following comes from the Jerusalem Post

The Israeli military confirmed that two rockets were fired towards central Israel on Thursday evening, with at least two loud explosions heard in the Gush Dan region.

According to the IDF, although the Iron Dome missile defense system was activated, there were no interceptions as both rockets fell in open territory.

It was the first time sirens were activated in Tel Aviv since the last war with Gaza in 2014 and several Israelis were treated for shock.

It was inevitable that there would be a substantial response from the Israeli military, and airstrikes were conducted very rapidly.  According to Fox News, a Hamas naval base was one of the primary targets…

The strikes were occurring in Khan Younis, roughly 15 miles south of Gaza City, according to The Associated Press. There were no immediate reports of injuries.

A Hamas naval base was targeted, the outlet reported, citing Palestinian media.

Originally, Hamas had seemed to deny responsibility for the rocket attacks, but the IDF later confirmed that they were fired by Hamas

We can confirm that the rockets fired from #Gaza at #TelAvivearlier tonight were launched by the Hamas terrorist organization.

If Hamas doesn’t fire any more rockets, this will probably be the end of it for now.

But with Hamas, things are never truly over.

Meanwhile, Israel is also on the brink of war with Hezbollah in the north.

In recent days, Israel has been dealing with massive tunnels that Hezbollah has constructed for the purpose of rapidly moving military forces into northern Israel.  So far, five tunnels have been discovered, but there are probably a lot more.

We are being told that the tunnels are absolutely enormous.  Reportedly, they are large enough “to move heavy military equipment”

For the first time since 1973, the Israel Defense Forces (IDF) confronts the very real prospect of a sizable incursion. Years of fighting alongside Russian and Iranian forces in Syria have transformed Hezbollah into a formidable military force capable of launching such a raid, relying on coordinated infantry, artillery, and even armor and drones. This represents a major leap from Hezbollah’s small hit-and-run tactics in the 2006 Lebanon war.

The tunnels are integral to this new threat. Built in violation of U.N. Security Council Resolution 1701 prohibiting Hezbollah’s rearmament in this area, they are reportedly wide enough to move heavy military equipment and large troop units.

Hezbollah’s leadership continues to threaten Israel with a new war, and it has been estimated that they have built up an arsenal of approximately 150,000 missiles for the next conflict.

Israel is roughly the same size as New Jersey.  Just imagine what would happen if 150,000 missiles were suddenly fired at towns and cities all over New Jersey, and you will have some idea of what Israel is potentially facing.

Of course the Israeli military is far superior to Hezbollah’s forces, but if Israel has to fight Hamas and Hezbollah simultaneously that would be a real challenge.

And then there is Syria.  After eight years of civil war, you would think that Syria would have had enough fighting by now.

Unfortunately, as I pointed out in a previous article, Syrian President Bashar al-Assad just threatened to attack Israel if the Israelis do not leave the Golan Heights.  The following comes from the Jerusalem Post

Syria vowed to attack Israel unless it withdraws from the Golan Heights, World Israel News reported on Thursday.

Syrian Deputy Foreign Minister Faisal Mekdad submitted an official warning to the head of the United Nations Truce Supervision Organization (UNTSO) Kristin Lund, in what seemed to be an attempt to prevent official US recognition of Israeli sovereignty in the Golan.

Can you imagine the stress that Israeli Prime Minister Benjamin Netanyahu must be going through right now?  A major election is less than a month away and he is literally fighting for his political life, and meanwhile several of Israel’s neighbors appear to be preparing for war with his nation.

And Iran appears to be eager for a fight too.  A few weeks ago, a top Iranian general threatened to completely wipe Israel off the map

Asked by a reporter in Tehran about Israeli threats to strike Iranian forces deployed in Syria, Brig. Gen. Hossein Salami was quoted by Iranian news outlets as saying, “Our strategy is to erase Israel from the global political map. And it seems that, considering the evil that Israel is doing, it is bringing itself closer to that.”

He added: “We announce that if Israel does anything to start a new war, it will obviously be the war that will end with its elimination, and the occupied territories will be returned. The Israelis will not have even a cemetery in Palestine to bury their own corpses.”

And Netanyahu also seems to anticipate that a conflict with Iran is coming.  The following comes from NBC News

Israeli Prime Minister Benjamin Netanyahu startled Iranians and even the White House on Wednesday with a strident call for Israeli-Arab action against the government in Tehran that was translated by his office as urging “war with Iran.”

Although Israeli officials tried to soften the reference by altering the English translation, the provocative comment was likely to further the perception that Israel, its Gulf Arab neighbors and the United States are interested in using military action to topple the government of Iran.

I have been warning that a major war is coming in the Middle East for a long time, and now we are closer than ever.

Let us hope for peace, but as we have seen in the past, any peace in the region is always just temporary.

Hamas, Hezbollah and Iran are all fundamentally committed to the complete and total destruction of the state of Israel and nothing is going to change that.  War is coming at some point, and it is going to be extremely bloody.

6.GLOBAL ISSUES

Boeing:

The flight pattern showed something was extraordinarily wrong as the plan swung up and down by hundred of feed

(courtesy zerohedge)

“Something Was Extraordinarily Wrong”: Doomed Boeing Swung Up And Down Hundreds Of Feet

One glimpse at the terrifying trajectory of the Ethiopian Airlines jetliner that crashed on Sunday shortly after takeoff from Addis Ababa and it is clear something was dreadfully wrong from the start.

As The New York Times notes, controllers also observed that the aircraft, a new Boeing 737 Max 8, was oscillating up and down by hundreds of feet – a sign that something was extraordinarily wrong.

Pilots are reportedly abuzz over publicly available radar data that showed the aircraft had accelerated far beyond what is considered standard practice, for reasons that remain unclear.

“The thing that is most abnormal is the speed,” said John Cox, an aviation safety consultant and former 737 pilot.

“The speed is very high,” said Mr. Cox, a former executive air safety chairman of the Air Line Pilots Association in the United States. “The question is why. The plane accelerates far faster than it should.” NYT

According to officials with Ethiopian Airlines, the crew of flight 302 told air traffic control they they were experiencing “flight control” problems just a few minutes before contact was lost. Pilot Yared Getachew – who had more than 8,000 hours of flying experience, reported the initial “flight control” problem in a calm voice within one minute of departure. 

According to the radar, the aircraft was flying far below the minimum safe altitude recommended during takeoff. Within two minutes, the plane had climbed to a safer altitude, and the pilot reported that he wanted to remain on a straight course to 14,000 feet.

The plane then proceeded to rapidly climb and fall by hundreds of feet while flying unusually fast, according to the Times. Air traffic controllers “started wondering out loud what the flight was doing.”

The plane’s trajectory was so erratic that two other Ethiopian flights – 613 and 629, where ordered to remain at higher altitudes.

While the controllers were instructing the other planes to keep their distance, a panicked Captain Getachew interrupted just three minutes into their flight and requested to turn back as the plane accelerated to even higher speeds well beyond the plane’s safety limits.

Flight 302 was immediately cleared to turn back, turning right as it climbed even further.

A minute later, it disappeared from the radar while flying over a restricted military zone.

As the Times notes, the crash of flight 302 is reminiscent of the October crash of another Boeing 737 Max 8 which crashed in Indonesia.

Both took place soon after takeoff, and the crews of both planes had sought to return to the airport.

The possibility that the two crashes had a similar cause was central to regulators’ decision to ground all 737 Maxes, a family of planes that entered passenger service less than two years ago.

After the Indonesia crash, a new flight-control system meant to keep the jet from stalling was suspected as a cause. In both cases, pilots struggled to control their aircraft. –NYT

The investigation of the Ethiopian crash is still in its early stages – with the so-called black boxes containing voice and flight data arriving in France on Thursday for further analysis.

Boeing, meanwhile, has been working on a software update for all 737 Max 8 jets which is expected by April. Meanwhile, questions remain over whether pilots should have undergone more training as airlines rolled out more technologically advanced models.

As we reported on Tuesday, several pilots repeatedly warned federal authorities of safety concerns over the 737 Max 8, with one captain calling the plane’s flight manual “inadequate and almost criminally insufficient,” according to the Dallas Morning News

On Wednesday, the chairman of the transportation committee in the House of Representatives, Peter Defazio (D-OR) said he would investigate the FAA’s certification of the 737 Max, including whether pilots have received inadequate training.

END
And then they found the “jackscrew” which confirmed that the Boeing 737 max 8 was set to dive:
(courtesy zerohedge)

‘Jackscrew’ Found At Ethiopian Crash Site Confirms Boeing 737 Max Was Set To Dive

Having seen the satellite-based trajectories of the Ethiopian Airlines Boeing 737 Max jetliner before its crash, it was clear, as one experienced pilot noted, that “something was extraordinarily wrong.

And now, as Bloomberg reports, a screw-like device found in the wreckage of the Boeing Co. 737 Max 8 has provided investigators with an early clue into what happened:

The so-called jackscrew, used to set the trim that raises and lowers the plane’s nose, indicates the jet was configured to dive, based on a preliminary review, according to a person familiar with the investigation.

The evidence helped convince U.S. regulators to ground the model, said the person, who requested anonymity to discuss the inquiry.

The jackscrew, combined with a newly obtained satellite flight track of the plane, convinced the FAA that there were similarities to the Oct. 29 crash of the same Max model off the coast of Indonesia.

In the earlier accident, a safety feature on the Boeing aircraft was repeatedly trying to put the plane into a dive as a result of a malfunction.

The jet’s flight recorders are in France, where they are being analyzed at the BEA’s laboratories. The agency posted a photo of the mangled hardware and has yet to comment on any progress on getting the data.

“The investigation process has started in Paris,” Ethiopian Airlines said in a Twitter post on Friday.

end

Multiple fatalities on a raid on a mosque in New Zealand’s southern most city of Christ Church.

(courtesy zerohedge)

Multiple Fatalities In New Zealand Mosque Shootings; Gunman Posted Plans On Social Media, Livestreamed Attack

Update4: A photo of the shooter who livestreamed:

Update3: Now there are reports of three possible shooters at two locations, with one in custody.

The Spectator Index@spectatorindex

BREAKING: New Zealand Police reporting the possibility of three active shooters in the Christchurch mosque attacks

New Zealand police have asked all mosques in the country to “shut their doors” until further notice, per BNO News.

Embedded video

BNO News

@BNONews

WATCH: New Zealand police confirm shooting with multiple fatalities at 2 mosques in Christchurch https://bnonews.com/index.php/2019/03/shooting-at-mosque-in-christchurch/ 

According to a manifesto posted to social media before the shooting, he wanted to lead the Untied States to civil war by escalating political and cultural tensions.

 

Nick Monroe@nickmon1112

The shooters manifesto says at one point that this incident is meant to lead the United States to civil war by escalating political and cultural tensions

Update2: Radio NZ has confirmed two shootings, one at the Masjid Al Noor Mosque next to Hagley Park, and at the Linwood Masjid Mosque in the suburb of Linwood.

Update: According to AP, there has been a shooting at a second Christchurch mosqueNo details were immediately available.

***

A gunman wielding an automatic rifle opened fire on a mosque in Christchurch, New Zealand, approximately ten minutes after approximately 300 people began afternoon prayers.

At least nine people have been killed with dozens injured, while eyewitnesses report “there was blood everywhere,” according to Stuff.co.nz and Radio NZ.

Another eyewitness who declined to give his name said there were “bodies all over me,” adding that the gunman emptied at least two magazines into the crowd.

The shooter was described as “white skinned, blonde, quite short and wearing a helmet and a bulletproof vest.” according to witness Ahmad Al-Mahmoud, 37, who broke a window in a door to escape from the mosque.

According to journalist Nick Monroe, the shooter – Twitter user “Brenton Tarrant” who joined in February posted his intention to shoot up the mosque on social media, then livestreamed the shooting.

Nick Monroe@nickmon1112

THIS IS THE NEW ZEALAND SHOOTER’S TWITTER, https://twitter.com/BrentonTarrant/with_replies  http://archive.is/aC2FQ

TWO DAYS BEFORE POSTING ON 8CHAN THEY POSTED THEIR WEAPONRY ON TWITTER

YOU CAN’T BAN 8CHAN FOR THIS
WITHOUT BANNING TWITTER

 

Approximately 20 armed police are clearing buildings nearby, while all schools in the area have been placed into lockdown. No students will be released until the police “have advised us that the lockdown is over and it is safe to do so.”

 

An armed police officer stands outside the Christchurch Mosque on Deans Ave following the shooting. (photo: George Heard/Stuff)

ChCh City Council@ChristchurchCC

In response to a serious ongoing incident we’re locking down number of central city buildings, including the Civic Offices and Central Library. https://www.ccc.govt.nz/news-and-events/newsline/show/3452 

Council places its central city buildings in lock-down

Christchurch City Council is locking down its central city buildings as police urge people in the area to stay indoors as they deal with a shooting at the Christchurch Mosque.

ccc.govt.nz

The Christchurch hospital emergency ward has been cleared out and hospital staff are expecting 40 – 50 injured people.

Embedded video

Mohammad Isam

@Isam84

Bangladesh team escaped from a mosque near Hagley Park where there were active shooters. They ran back through Hagley Park back to the Oval.

Of note, gun ownership in New Zealand is categorized as “restrictive” – as civilians are not allowed to possess handguns, military-style semi-automatic weapons or fully automatic weapons without a permit and a relevant firearm license endorsement.

Developing…

END

7  OIL ISSUES

8. EMERGING MARKETS

 

Venezuela

end

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

Euro/USA 1.1319 UP .0012 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 111.70  DOWN .051 (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 1.3261    UP   0.0003  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.3328 UP .0003 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS FRIDAY morning in Europe, the Euro ROSE by 12 basis points, trading now ABOVE the important 1.08 level  RISING to 1.1319 Last night Shanghai composite closed UP 31.07 POINTS OR 1.04%/

 

 

 

//Hang Sang CLOSED UP 160.87   POINTS OR 0.56% 

 

/AUSTRALIA CLOSED DOWN 0.03%/EUROPEAN BOURSES GREEN 

 

 

 

 

 

 

 

 

 

The NIKKEI: this FRIDAY morning CLOSED UP 163.83 POINTS OR 0.77% 

 

 

 

 

 

 

 

 

Trading from Europe and Asia

1/EUROPE OPENED GREEN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 160.83 POINTS OR 0.77%

 

 

 

/SHANGHAI CLOSED UP 31.07 POINTS OR 1.04% 

 

 

 

 

 

 

Australia BOURSE CLOSED DOWN .03%

 

Nikkei (Japan) CLOSED UP 163.83 POINTS OR 0.77%

 

 

 

 

 

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1303.95

silver:$15.39

Early FRIDAY morning USA 10 year bond yield: 2.63% !!! UP 0 IN POINTS from THURSDAY’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 0  IN BASIS POINTS from THURSDAY night. (POLICY FED ERROR)/

USA dollar index early FRIDAY morning: 96.64 DOWN 14 CENT(S) from  THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING

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And now your closing  FRIDAY NUMBERS \12: 00 PM

 

Portuguese 10 year bond yield: 1.31% DOWN 2  in basis point(s) yield from THURSDAY/

JAPANESE BOND YIELD: -.03%  UP 1   BASIS POINTS from THURSDAY/JAPAN losing control of its yield curve/

 

 

SPANISH 10 YR BOND YIELD: 1.19% DOWN 0   IN basis point yield from THURSDAY

ITALIAN 10 YR BOND YIELD: 2.51 UP 2    POINTS in basis point yield from THURSDAY/

 

 

the Italian 10 yr bond yield is trading 132 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: RISES  TO +.09%   IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.42% 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 FRIDAY

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

Euro/USA 1.1337 UP    .0030 or 30 basis points

 

 

USA/Japan: 111.51 DOWN .254 OR YEN UP 53 basis points/

Great Britain/USA 1.3279 UP .0024( POUND UP 24  BASIS POINTS)

Canadian dollar DOWN 20 basis points to 1.3346

 

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The USA/Yuan,CNY closed AT 6.7137    0N SHORE  (DOWN)

 

THE USA/YUAN OFFSHORE:  6.7127(  YUAN DOWN)

TURKISH LIRA:  5.4651

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

 

 

 

Your closing 10 yr USA bond yield DOWN 3 IN basis points from THURSDAY at 2.60 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 3.02 DOWN 1  in basis points on the day /

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

Your closing USA dollar index, 96509 DOWN 28 CENT(S) ON THE DAY/1.00 PM/

 

Your closing bourses for Europe and the Dow along with the USA dollar index closing and interest rates for FRIDAY: 12:00 PM 

London: CLOSED UP  39.96 OR 0.56%

German Dax : UP 48.96 POINTS OR 0.42%

Paris Cac CLOSED UP 37.13 POINTS OR  0.69%

Spain IBEX CLOSED UP 69.20 POINTS OR  0.75%

Italian MIB: CLOSED UP 91.97 POINTS OR 0.44%

 

 

 

 

WTI Oil price; 58.29 1:00 pm;

Brent Oil: 66.73 12:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    65.15  THE CROSS LOWER BY 0.28 ROUBLES/DOLLAR (ROUBLE HIGHER BY 28 BASIS PTS)

 

TODAY THE GERMAN YIELD RISES  TO +.09 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 :  58.44

 

 

BRENT :  67.05

USA 10 YR BOND YIELD: … 2.59…DEADLY

 

 

 

 

 

 

USA 30 YR BOND YIELD: 3.02..

 

 

 

EURO/USA DOLLAR CROSS:  1.1319 ( UP 12   BASIS POINTS)

USA/JAPANESE YEN:111.50 DOWN .252 (YEN UP250  BASIS POINTS/..

 

 

USA DOLLAR INDEX: 96.59 DOWN 19 cent(s)/

The British pound at 4 pm: Great Britain Pound/USA:1.3288  UP 31 POINTS FROM YESTERDAY

the Turkish lira close: 5.4651

the Russian rouble 64.87   UP .57 Roubles against the uSA dollar.( UP 57 BASIS POINTS)

 

Canadian dollar:  1.3350 DOWN 25 BASIS pts

USA/CHINESE YUAN (CNY) :  6.7137  (ONSHORE)/

 

USA/CHINESE YUAN(CNH): 6.7131  (OFFSHORE)

German 10 yr bond yield at 5 pm: ,0.09%

 

The Dow closed UP 138.93 POINTS OR 0.54%

 

NASDAQ closed UP 57.62 POINTS OR 0.76%

 


VOLATILITY INDEX:  12.93 CLOSED down 0.54 

 

LIBOR 3 MONTH DURATION: 2.614%//

 

 

 

FROM 2.6011

 

 

 

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

Bond Yields Plunge To 2019 Lows As Quad-Witch Crushes VIX

10Y Treasury yields lowest close since Jan 2018 and stocks ever-bid…

…despite sliding EPS expectations and macro data…

Makes us think…

Chinese markets closed green once again as two Friday pumps rescued them from the red – a terrifying thought after last week’s loss…

 

One-way street higher in European stocks this week…

 

This was the Nasdaq Composite’s best week since November, but the late-day weakness (as quad-witch bias fades) took the shine off of things…

NOTE: the opening panic-buying almost every day this week.

 

The S&P closed above 2800 and above the quad top highs…

 

The week’s biggest gains were thanks to a huuge short-squeeze but the last two days suggest they have run out of ammo once again…

 

FANG Stocks had their best week in 2 months but began to lose momo into the end of the week…

 

VIX collapsed to a 12 handle today and credit spreads continued to compress…

 

Treasury yields fell across the curve on the week but 30Y underperformed, scarping along at unchanged…

 

10Y Yields saw the lowest weekly close since Jan 2018…

 

The short-end of the yield curve has now been inverted all year, reaching its record inversion this week…

with 2s and 5s now below the effective funds rate…

 

Market expectations are now for a 16bps rate CUT in 2019, the most dovish since the early Jan crash…

 

This week was the dollar’s worst week of the year (since early December)

 

Cable soared this week as hopes that a no-deal brexit was the off the table buoyed sentiment… This is the second best week for sterling since Sept 2017…

 

EMs rallied most this week…

 

…with ARS having its best week in over 4 months…

 

Despite the dollar dump, only WTI managed solid gains as Copper (China) and PMs basically brokeven…

 

WTI surged above $58…

 

Gold managed to hold above $1300, but rejected the 50DMA…

 

And finally, pigs got slaughtered this week but Lean Hog futures enjoyed their greatest weekly gain on record…

Bloomberg explains that a nasty haemorrhagic virus in pigs might be throwing a lifeline to meat producers who have been badly hurt by the U.S.-China trade spat. As the highly-contagious African swine fever devastates Asian herds, Chinese hog inventories are tumbling, and buyers are turning to the U.S.

But all eyes will be on next week as the Quad Witch drift disappears…

end

 

MARKET TRADING/

early this morning

Very dangerous;  USA 10 yr bond yield plummets to 2.58%

(courtesy zerohedge)

Bond Yields Tumble As US Manufacturing Output Slumps To Weakest Since July

After the shocking surprise plunge in January (led by a big slide in manufacturing output), US Industrial Production was expected to rebound in February.

And while the headline Industrial Production data did rebound, it was much lower than expected (+0.1% MoM vs +0.4% exp)…

However, U.S. factory production slumped for a second month in February, missing forecasts for a pickup, indicating headwinds from the trade war to slower global growth are weighing on manufacturers.

As Bloomberg notes, the results indicate headwinds for manufacturing persist as producers confront uncertainty from trade policy and dimmer projections for major economies from China to Europe. Economists project the U.S. economy will slow in each quarter this year.

The data echo other downbeat reports on the sector. The Institute for Supply Management’s gauge of U.S. factories fell to a two-year low in February in a broad decline across orders, employment, production and deliveries. A separate report earlier Friday showed the New York Fed’s measure of general business conditions fell to the lowest since May 2017.

This is the weakest manufacturing print since July and has sparked a bid for bonds as the growth rebound narrative suffers another blow…

Stocks are also weaker, but have a long way to fall to catch down to bonds…

10Y Yield trades at 2.58% handle – the lowest since January 4th’s yield collapse.

end
Mid morning

Dow Dumps Into Red As Quad-Witch-Bid Fades

The opening panic-bid in stocks is fading as various quad-witch expirations (and market maker pinning) losses its control.

Dow futures are down 200 points from their pre-open highs…

Nasdaq remains the outperformer…

All as bond yields plunge to 2019 lows…

end
AFTERNOON:  WHO HAS IT RIGHT BONDS OR EQUITIES…OUR MONEY IS ON BONDS!!

As Stocks Surge, Treasuries Flash An “Ominous Sign”

With both the Dow, and the broader market saved – for now – from an embarrassing Quad Witch slump by news that Boeing is set to roll out a software upgrade for its 737 MAX airplanes (how a software update will fix what many now see as a hardware issue is unclear, nor is it clear how Boeing effectively admitting guilt for the death of hundreds of people which will unleash billions in lawsuits is bullish), bond yields will have none of it and as we showed earlier, the buying ramp across asset classes is the latest confirmation that equities are not trading on fundamentals (as bonds price in the continued deterioration in the US economy), but merely frontrunning QE4.

That trade got a boost today after industrial production for February disappointed consensus at 0.1% MoM vs. 0.4% survey and -0.4% in January. Meanwhile, manufacturing production contracted for the second straight month despite forecasts of slight expansion, declining -0.4% MoM. This brings capacity utilization back to its lowest level since last July, having declined three straight months (and four of the last five).

The data comes on the back of another miss in the form of Empire manufacturing for March, which disappointed at 3.7 vs. 10.0 survey and 8.8 prior, which to BMO portends “potential weakening more broadly in the manufacturing sector through Q1 despite the loosening of financial conditions that has occurred since December.” All in all, as BMO’s rate strategist Jon Hill noted “a variety of disappointing releases which will continue to push yields lower.”

And speaking bizarre moves during “Freaky Friday”, shortly after the data was released, and the resultant tumble in yield, 3- and 5-year yields inverted modestly vs. fed funds, which according to Hill, was “a self-evident ominous sign.”

The last time 3s and 5s dipped below the Fed Funds was at the start of the year, when the VIX soared and equities tumbled. The big difference now is that not only is the VIX plunging, but the S&P is now rapidly approaching the all time highs hit last September.

Finally, and the latest divergence observed today between risk free assets and safe havens is that today’s 10-year yields tumbled to the lowest levels since the beginning of the year, with the post-CPI intraday bottom now breached.

In short: just as another BMO strategist, the bank’s chartiest Russ Visch noted on Wednesday, “the bond market certainly hasn’t been buying into this week’s strength in equity markets either. The divergence between the S&P 500 and the U.S. 2-year yield (which have traded in lockstep for many months now) is only getting worse.”

His question, and perhaps the only question that matters “Who has it wrong here? Bonds or equities?

The answer will determine what happens after today’s quad witch is over.

ii)Market data/

The very important NY (Empire Manufacturing Survey) reveals a huge slump and this soft data manufacturing report is at a 22 month low

(courtesy zerohedge)

Empire Manufacturing Survey Slumps To 22-Month Lows

After bouncing in February, Empire Manufacturing survey in March dropped back to its weakest since May 2017. Against expectations of a further bounce to 10.0, the data printed at 3.7.

New Orders slowed dramatically (weakest since May 2017)and the Average Workweek contracted for the first time since Nov 2016.

Alternatively, the index for number of employees climbed ten points to 13.8, pointing to an increase in employment levels, even if those workers are apparently working far less.

Meanwhile, in fresh trouble for profit margins, the prices paid index moved higher, rising seven points to 34.1, indicating a pickup in input price increases. Meanwhile, the prices received index fell five points to 18.1, suggesting that selling price increases slowed, and that profit margins will suffer as a result.

‘Soft’ survey data has been slumping since October and now the brief February bounce is fading fast.

And yet, despite the disappointing current print, optimism about the six-month outlook remains solid even if it was slightly lower than last month. The index for future business conditions edged down three points to 29.6. The indexes for future new orders and shipments were also somewhat below last month’s levels. Firms expected solid increases in employment and hours worked in the months ahead. The capital expenditures index was little changed at 28.3, and the technology spending index came in at 20.3.

END
Soft data fairy tales as the UMich sentiment rebounds.  The hope factory was the reason for the rise.  However inflation sentiment was a bummer
(courtesy zerohedge)

‘Hope’ Rebound Sparks Surge In UMich Sentiment Despite Inflation Slump

University of Michigan consumer sentiment survey was expected to rebound further in March and it did…dramatically, from 93.8 to 97.8.

In preliminary data, ‘Hope’ led the way, spiking from 84.4 to 89.2 (above 88.1 exp) with current conditions rising from 108.5 to 111.2 (below 112.0 expectations)

Nearly equal proportions of income groups reported improved finances in early March, but the factors underlying those gains were distinct. Households with incomes in the bottom two-thirds were more likely to cite net income gains compared with last month (+11 percentage points); in comparison, upper income households were more likely to report declines (-4 percentage points) from last month.

Short-term (1Y) inflation expectations tumbled from 2.6% to 2.4%, but longer-term (5-10Y) expectatiosn rose from 2.3 to 2.5%…

Finally we note that the spread between current (high) and future expectations (low) remains extremely wide (pre-recessionary) but has started to correct back…

The difference that accounted for the divergence was how households evaluated their personal finances, as lower income households expressed much more positive assessments. The divergence was due to a monthly jump of one-percentage point in income expectations among middle and lower incomes compared to a change of just one-tenth of a percentage point among those with incomes in the top third. Rising income expectations were accompanied by lower expected yearahead inflation rates, resulting in more favorable real income expectations…

end
The JOLT report shows a soaring number of job openings as well as a huge number of quits (take your job and shove it). This will probably force Powell to raise rates sometime during 2019
(courtesy zerohedge)

US Job Opening Soar To All Time High: 1.3 Million More Than Unemployed Workers

The Fed’s dovish U-turn appears in jeopardy again.

After a modest slowdown in job openings which started in September and continued through November, today’s JOLTS report – Janet Yellen’s favorite labor market indicator – for the month of January  showed an unprecedented surge in job openings across most categories at the start of 2019, with the total number soaring from an upward revised 7.479 million (from 7.335 million), to an all time high 7.581 million, smashing expectations of a 7.225 million print.

And thanks to the surge in job openings, this will be the 11th consecutive month in which there were more job openings then unemployed workers: considering that according to the payrolls report there were 6,235MM unemployed workers, there are now exactly 1.346 million more job openings than unemployed workers currently, (how accurate, or politically-biased the BLS data is, is another matter entirely).

 

In other words, in an economy in which there was a perfect match between worker skills and employer needs, there would be zero unemployed people at this moment (of course, that is not the case.)

Another issue: with the Fed positioned for an economic slowdown, the JOLTS data better turn negative fast or else Powell will soon be facing some very unpleasant questions why the Fed’s rate hikes are on pause when the number of job openings in the economy is soaring to unprecedented levels.

According to the BLS, job openings increased in a number of industries, with the largest increases in wholesale trade (+91,000), real estate and rental and leasing (+60,000), government (+59,000) and information (+42,000). The job openings level decreased in other services (-98,000), retail trade (-97,000), and arts, entertainment, and recreation (-40,000).

Adding to the unexpectedly strong labor picture to close the year, as job openings soared, the number of total hires also increased, rising by 95K in January to just shy of an all time high, and printing at 5.801 million. The hires level was little changed for total private and for government. The number of hires was little changed in all industries and all four regions. According to the historical correlation between the number of hires and the 12 month cumulative job change, the pace of hiring right now is precisely where it should be relative to the cumulative change in hiring.

Meanwhile, the so-called “take this job and shove it indicator”, the quits level, also confirmed the latest labor market strength, rising by 99K to 3.490MM, and was little changed for total private but increased for government (+20,000). Quits increased in arts, entertainment, and recreation (+19,000) and in state and local government education (+17,000). Quits decreased in federal government (-6,000).

Putting all this in in context

  • • Job openings have increased since a low in July 2009. They returned to the prerecession level in March 2014 and
    surpassed the prerecession peak in August 2014. There were 7.6 million open jobs on the last business day of
    January 2019.
    • Hires have increased since a low in June 2009 and have surpassed prerecession levels. In January 2019, there were
    5.8 million hires.
    • Quits have increased since a low in September 2009 and have surpassed prerecession levels. In January 2019, there
    were 3.5 million quits.
    • For most of the JOLTS history, the number of hires (measured throughout the month) has exceeded the number of
    job openings (measured only on the last business day of the month). Since January 2015, however, this relationship
    has reversed with job openings outnumbering hires in most months.
    • At the end of the most recent recession in June 2009, there were 1.1 million more hires throughout the month than
    there were job openings on the last business day of the month. In January 2019, there were 1.8 million fewer hires
    than job openings.

 

 

iii)USA ECONOMIC/GENERAL STORIES

TIC report:

This is rather alarming:  Foreigners dumped the most USA investments in a decade during the December through January period

(courtesy zerohedge)

Foreigners Dumped Most US Investments In A Decade In December/January

U.S. total cross-border investment outflows rose to $143.7b in January, that is the biggest net monthly outflow since Sept 2016…

This is the largest two-month Net TIC outflows since February 2009

 

And the largest 12-month average sales since June 2016…

The breakdown of the outflows show that US Stocks were heavily sold…

 

In fact, foreigners dumped the most US stocks since Sept 2015…

 

Despite the selling, there were some buyers of US Treasuries in January. Japan was the biggest buyer… (the biggest mothly buy since Sept 2013)

Thailand and Taiwan were also big buyers in January, and China also dipped its toe back inf for the 2nd month in a row…

But we note that Luxembourg, Ireland, and the Saudis were big sellers of Treasuries…

 

So, January’s stock market surge was all domestic flow driven.

end

Another scandal brewing:

Grade-Changing Scandal: Judge Orders Baltimore City Schools To Release Documents 

A Baltimore City Circuit Court judge has demanded Baltimore City Public Schools to hand over all documents Fox45 requested after Project Baltimore filed a lawsuit against the school system to get documents they believed would provide bombshell evidence of a massive grade-changing scandal.

“When I saw the ruling, I was elated because I believe in accountability, and government cannot run amuck,” says Scott Marder, of Thomas & Libowitz, the attorney who represented Fox45 in this lawsuit.

Zerohedge readers have been well informed about Project Baltimore’s mission to uncover one of the largest grade-changing scandalspossibly in the country.

The story broke several years ago but has not gained national attention, yet. It all started when Project Baltimore investigated possible grade changing at Northwood Appold Community Academy II, in northeast Baltimore, in August of 2017. Baltimore City Public Schools responded with an internal investigation and found Project Baltimore’s allegations were inconclusive.

So, Project Baltimore, with probably the backing of the Smith family, the family who controls Sinclair Broadcast Group/Fox45 and has tens of millions of dollars invested in the city, sued the school system and won.

“The purpose of a public records law is to hold government accountable. This is an example of that happening, and there needs to be more of it, particularly here with the school system,” says Marder. “It’s a tragedy what’s happened with our kids. When you look at the numbers, it’s extraordinary.”

Marder first filed the lawsuit on behalf of Fox45 about 1.5 years ago. City Schools began to slowly hand over more than 10,000 pages of documents. However, many were redacted. In February, the case went to trial.

Circuit Court Judge Jeannie Hong ruled in Fox45’s favor on all eight orders. The judge ruled that City Schools “willfully and knowingly” violated the law. Now, the school system must hand over all the documents unredacted and pay Fox45 $122,000 in legal fees.

“Had the school board litigated this case without filing frivolous papers in court, the legal fees would not have been nearly as high,” says Marder.

Fox45 points out that the school system regularly asks for increased operating budgets. However, classrooms citywide don’t have basic supplies like paper and pencils. Most schools don’t have heat or conditioning. Somehow, the school spent more than a hundred thousand dollars to fight Project Baltimore in court, a case that they knew was not winnable.

Why did they choose to do that? Project Baltimore asked the school system for a response, but no one replied, yet they did give a statement that read:

“The public has the right to know about City Schools’ activities and affairs, but we believe the Court’s ruling in the legal action brought by Sinclair Broadcasting will have a chilling effect on investigations. Staff members, students, parents, and other members of the community should be able to have reasonable assurance of confidentiality. Without it, they will be less likely to report concerns or respond fully to questions, hindering our ability to identify and address misconduct. We are currently reviewing the ruling to determine possible next steps.” -Anne Fullerton, Baltimore City Public Schools

When City Schools made the argument in court that the public did not have the right to know what was going on behind the scenes, the judge dismissed it, saying the public’s right to know is most important.

“This opinion is not necessarily going to impact other courts, but this opinion should have a huge impact on what the school system does,” says Marder. “The judge very directly told them what they did was wrong. It’s gonna cost them a lot of money, and I don’t think they’re gonna want to be in this position again.”

The court did not give a date for when the school system had to fork over thousands of pages of unredacted documents. Baltimore City Schools are likely to appeal the decision.

One of the largest grade-changing scandals in the country continues to brew in Baltimore. It is only a matter of time before this story gains traction.

end

SWAMP STORIES

What crooks!! The DOJ and the Clinton lawyers struck a secret deal to block the FBI access to the Clinton Foundation emails.  This was in the Strzok testimony held behind closed doors and kept from the public

(courtesy zerohedge)

DOJ And Clinton Lawyers Struck Secret Deal To Block FBI Access To Clinton Foundation Emails: Strzok

The Justice Department and Hillary Clinton’s legal team “negotiated” an agreement that blocked the FBI from accessing emails on Clinton’s homebrew server related to the Clinton Foundation, according to a transcript of recently released testimony from last summer by former FBI special agent Peter Strzok.

Under questioning from Judiciary Committee General Counsel Zachary Somers, Strzok acknowledged that Clinton’s private personal email servers contained a mixture of emails related to the Clinton Foundation, her work as secretary of state and other matters.

“Were you given access to [Clinton Foundation-related] emails as part of the investigation?” Somers asked

We were not. We did not have access,” Strzok responded. “My recollection is that the access to those emails were based on consent that was negotiated between the Department of Justice attorneys and counsel for Clinton.” –Fox News

Strzok added that “a significant filter team” was employed at the FBI to “work through the various terms of the various consent agreements.”

“According to the attorneys, we lacked probable cause to get a search warrant for those servers and projected that either it would take a very long time and/or it would be impossible to get to the point where we could obtain probable cause to get a warrant,” said Strzok.

The foundation has long been accused of “pay-to-play” transactions, fueled by a report in the IBTimes that the Clinton-led State Department authorized $151 billion in Pentagon-brokered deals to 16 countries that donated to the Clinton Foundation – a 145% increase in completed sales to those nations over the same time frame during the Bush administration. 

Adding to speculation of malfeasance is the fact that donor contributions to the Clinton Foundation dried up by approximately 90% over a three-year period between 2014 and 2017, according to financial statements.

What’s more Bill Clinton reportedly received a $1 million check from Qatar – one of the countries which gained State Department clearance to buy US weapons while Clinton was Secretary of State, even as the department signaled them out for a range of alleged ills,” according to IBTimes. The Clinton Foundation confirmed it accepted the money.

Then there was the surely unrelated $145 million donated to the Foundation from parties linked to the Uranium One deal prior to its approval through a rubber-stamp committee.

“The committee almost never met, and when it deliberated it was usually at a fairly low bureaucratic level,” Richard Perle said. Perle, who has worked for the Reagan, Clinton and both Bush administrations added, “I think it’s a bit of a joke.” –CBS

Later in his testimony last summer, Strzok said that agents were able to access “the entire universe” of information on the servers by using search terms to probe their contents – saying “we had it voluntarily.”

What’s bizarre about this, is in any other situation, there’s no possible way they would allow the potential perpetrator to self-select what the FBI gets to see,” said former Utah Rep. Jason Chaffetz – former chair of the House Oversight and Government Reform Committee until 2017 and current contributor to Fox News. “The FBI should be the one to sort through those emails — not the Clinton attorneys.” 

Chaffetz suggested that the goal of the DOJ was to “make sure they hear no evil, see no evil — they had no interest in pursuing the truth.”

“The Clinton Foundation isn’t supposed to be communicating with the State Department anyway,” said Chaffetz. “The foundation — with her name on it — is not supposed to be communicating with the senior officials at the State Department.”

Republican-led concerns that the DOJ, under the Obama administration, was too cozy with the Clinton team during the 2016 presidential campaign have grown louder in recent days. Earlier this week, Fox News exclusively reviewed an internal chart prepared by federal investigators working on the so-called “Midyear Exam” probe into Clinton’s emails. The chart contained the words “NOTE: DOJ not willing to charge this” next to a key statute on the mishandling of classified information.

The notation appeared to contradict former FBI Director James Comey’s repeated claims that his team made its decision that Clinton should not face criminal charges independently.

But Strzok, in his closed-door interview, denied that the DOJ exercised undue influence over the FBI, and insisted that lawyers at the DOJ were involved in an advisory capacity working with agents. –Fox News

Strzok was fired from the FBI after months of intense scrutiny over anti-Trump text messages he exchanged with his mistress – FBI lawyer Lisa Page. Both Strzok and Page were involved at the highest levels of both the Clinton email investigation and the counterintelligence investigation on President Trump and his 2016 campaign.

end

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

Britain’s Parliament votes to delay Brexit [until June 30] by 412 to 402, although the EU must still formally agree to it before March 29   http://bloom.bg/2F5EcO7

The UK Parliament rejected, by 334 to 85, an amendment [H] that called for a Brexit delay in order to hold a second referendum.  MPs also rejected, by a 318 to 302 vote, a Labour amendment [I] that sought an extension to Article 50, so parliament had time to find a majority for a different deal.

The UK Parliament vote to delay Brexit coincided with the VIX Fix rally, which was only two handles.  ESMs then rolled over because there was no enthusiasm for a VIX Fix rally or the increasingly popular penultimate hour of the day, or front run the late ESM manipulation, rally.

John Solomon: The damning proof of innocence that FBI likely withheld in Russian probe

Carter Page’s summer bike ride to a Virginia farm and George Papadopoulos’s hasty academic jaunt to London may emerge as linchpin proof of FBI surveillance abuses during the 2016 election… growing evidence suggests both Trump campaign advisers made exculpatory statements — at the very start of the FBI’s investigation — that undercut the Trump-Russia collusion theory peddled to agents by Democratic sources. The FBI plowed ahead anyway with an unprecedented intrusion into a presidential campaign, while keeping evidence of the two men’s innocence from the courts

    A much bigger scandal — the intentional misleading of the nation’s federal intelligence court — soon may eclipse the Russia narrative that has dominated the media the past two years…  https://thehill.com/opinion/white-house/434054-the-damning-proof-of-innocence-that-fbi-likely-withheld-in-russian-probe#.XIqy-otLxv4.twitter

 

@paulsperry_: DOJ IG Horowitz is investigating who in the sr ranks of FBI & DOJ–including Rosenstein & Yates–knew Bruce Ohr was back-channeling anti-Trump dirt from Steele to the FBI after Steele was terminated by the FBI as a confidential source. Ohr is fully cooperating in probe.

 

Peter Strzok: Clinton, DOJ struck deal that blocked FBI access to Clinton Foundation emails on her private server

https://www.washingtonexaminer.com/news/peter-strzok-clinton-doj-struck-deal-that-blocked-fbi-access-to-clinton-foundation-emails-on-her-private-server

 

Peter Strzok Deleted ‘Personal’ Communications With Lisa Page https://dailycaller.com/2019/03/14/peter-strzok-deleted-lisa-page/

 

AG Bill Barr’s Discussions with Mueller on General Mike Flynn Led to Memo Ending Cooperation

Posobiec said that Mueller’s corrupt prosecutor Andrew Weissmann pushed back and wanted to continue to harass General Flynn…

https://www.thegatewaypundit.com/2019/03/report-ag-bill-barrs-discussions-with-mueller-on-general-mike-flynn-led-to-memo-ending-cooperation/

 

Top Mueller Prosecutor [Weissmann] Stepping Down In Latest Clue Russia Inquiry May Be Ending

https://www.npr.org/2019/03/14/703108073/top-mueller-prosecutor-stepping-down-in-latest-clue-russia-inquiry-may-be-ending

 

Is Barr’s move to curtail possible prosecutorial abuses a factor in Weissmann’s exit?

 

@TomFitton: Andrew Weissmann, Mueller top deputy implicated in Dossier scandal, is anti-Trumper who supported lawless Sally Yates obstruction of @RealDonaldTrump’s travel ban.

 

Lindsey Graham Pledges FISA Abuse Hearings    https://dailycaller.com/2019/03/14/lindsey-graham-fisa-abuse-hearings/

 

John McCain Associate Had Contact with a Dozen Reporters Regarding Steele Dossier

Kramer said he believed McCain was sought out in order to provide more “oomph” in terms of attracting the FBI’s attention…     https://dailycaller.com/2019/03/14/john-mccain-dossier-steele-reporters/

 

Ex-federal prosecutor Andy McCarthy: NY’s political prosecution of Manafort should scare us all

The New York district attorney did not indict Manafort because he committed mortgage fraud. The DA indicted Manafort because he worked on the Trump campaign and could be pardoned during Trump’s presidency. That’s disgraceful.

https://thehill.com/opinion/judiciary/433989-nys-political-prosecution-of-manafort-should-scare-us-all#.XIpZ2Y0vNM8.twitter

 

After Michelle Obama’s former aide’s urging, prosecutor pushed for FBI to investigate Smollett

Anthony Guglielmi, the police department’s chief spokesman, said Foxx conveyed the request to Johnson that Tchen and the Smollett family member wanted the FBI to take over the investigation. He said the case was not moved to federal authorities because “there was a lack of evidence” to support that Smollett was the victim of a federal hate crime…

https://www.usatoday.com/story/life/2019/03/13/jussie-smollett-former-obama-aide-asked-fbi-lead-investigation/3156693002/

 

Paul Ryan Blocked Subpoenas of Democrats [What did they have on Paul?  Why did he retire?]

Trump told Breitbart News in an exclusive lengthy Oval Office interview that Ryan blocked issuance of subpoenas to people he thinks should have been investigated on the political left, and now that the Republicans no longer have the majority in the House, people Trump says Ryan protected may have gotten away with whatever they did that warranted investigation…

https://www.breitbart.com/politics/2019/03/13/exclusive-president-donald-trump-paul-ryan-blocked-subpoenas-of-democrats/

-END-

Let us conclude the week as is our customer with this offering courtesy of Greg Hunter

 

College Scam Distraction, Failed Trump Coup Further Revealed, Economy Teeters

By Greg Hunter On March 15, 2019 In Weekly News Wrap-Ups

The college admissions and bribery scandal is a mess and has already sparked a class action lawsuit against the prestigious colleges involved. Many more lawsuits from aggrieved students and parents will surely follow.

The college scandal is merely a distraction to the biggest political story in U.S. history, and that is the failed Trump coup by the Obama Administration. It involved the FBI, DOJ and CIA and likely went all the way to the top at the White House. We found out this week that the FBI could not investigate the Clinton email scandal properly because it was not allowed access to the emails by the DOJ because of a deal cut with Clinton.

Is the economy worse than we are being told? There is record debt everywhere you look, and it appears that the economy is stalling. Is this why the Fed has done an about face and is stopping with the planned rate hikes?

Join Greg Hunter as he talks about these stories and more in the Weekly News Wrap-Up.

-END-

I WILL SEE YOU MONDAY NIGHT
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