MARCH 27/LBMA/OTC OPTIONS EXPIRY THIS FRIDAY THE SAME DAY AS BASEL III//GOLD DOWN $4.05 TO $1311.25//SILVER DOWN 12 CENTS TO $15.31//SURPRISING GAIN OF 3.23 TONNES OF GOLD INTO THE GLD//SWAPS FOR LIRA INCREASED IN COST BY A WHOPPING 1000 % BY THE END OF THE DAY AS INVESTORS SEEK LIRA TO SHORT//TURKEY MAY FAIL AS THEY ARE RUNNING OUT OF DOLLARS//ISRAEL STRIKES GAZA AGAIN TODAY//SWEDBANK, ONE OF THE OLDEST BANKS IN SWEDEN CAUGHT UP IN MONEY LAUNDERING//TRUMP WARNS PUTIN TO GET OUT OF VENEZUELA/STEPHEN MOORE ( A NEW MEMBER TO BE TO THE FED) VOICES THAT HE WANTS INTEREST RATES DROPPED BY 50 BASIS POINTS IMMEDIATELY//MORE SWAMP STORIES FOR YOU TONIGHT//

 

 

 

 

GOLD: $1311.25  DOWN $4.05 (COMEX TO COMEX CLOSING)

Silver:  $15.31 DOWN 12 CENTS (COMEX TO COMEX CLOSING)

Closing access prices:

Gold :  $1309.70

 

silver: $15.27

 

I am sorry that I made a little error these past few days.  Comex expiry was yesterday and the LBMA and OTC options expire on March 29.2019.  That sets up a nightmare for the banks as Basel III also begins on March 29.

 

I am assure you that there is going to plenty of gold oz standing for the upcoming April contract month.

 

 

 

London/LBMA expires Friday March 29/2019.

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 (0.00311 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  396 NOTICES FOR 39600 OZ  (1.23176 TONNES)

 

 

SILVER

 

FOR MARCH

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

40 NOTICE(S) FILED TODAY FOR 200,000  OZ/

 

total number of notices filed so far this month: 5424 for 27,120,000

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE $4017:UP $68

 

Bitcoin: FINAL EVENING TRADE: $4019  UP 77

 

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: 1,314.300000000 USD
INTENT DATE: 03/26/2019 DELIVERY DATE: 03/28/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
661 C JP MORGAN 1
905 C ADM 1
____________________________________________________________________________________________

TOTAL: 1 1
MONTH TO DATE: 396

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

In silver, the total OPEN INTEREST FOR THE FIRST TIME IN 7 TRADING SESSIONS LOWERS ITS OPEN INTEREST :  THIS TIME BY A SMALL  SIZED 440 CONTRACTS FROM 193,116 UP TO 192,676 WITH YESTERDAY’S 13 CENT FALL 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 STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:

0 EFP’S FOR MARCH,  0 FOR APRIL,  0 FOR MAY, 1017 FOR DECEMBER AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 1017 CONTRACTS. WITH THE TRANSFER OF 1017 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 1017 EFP CONTRACTS TRANSLATES INTO 5.065 MILLION OZ  ACCOMPANYING:

1.THE 13 CENT FALL 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: 27.120 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:

34,044 CONTRACTS (FOR 19 TRADING DAYS TOTAL 34,044 CONTRACTS) OR 170.220 MILLION OZ: (AVERAGE PER DAY: 1891 CONTRACTS OR 9.456 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAR:  170.220 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 24.28% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)*  JUNE’S 345.43 MILLION OZ IS THE SECOND HIGHEST RECORDED ISSUANCE OF EFP’S AND IT FOLLOWED THE RECORD SET IN APRIL 2018 OF 385.75 MILLION OZ.

ACCUMULATION IN YEAR 2019 TO DATE SILVER EFP’S:          535.52    MILLION OZ.

JANUARY 2019 EFP TOTALS:                                                      217.455. MILLION OZ

FEB 2019 TOTALS:                                                                       147.4       MILLION OZ/

 

 

RESULT: WE HAD A SMALL SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 440 WITH THE 13 CENT GAIN IN SILVER PRICING AT THE COMEX /YESTERDAY..THE CME NOTIFIED US THAT WE HAD   A STRONG SIZED EFP ISSUANCE OF 1017 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 VERY SMALL SIZED: 577 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 1017 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 440 OI COMEX CONTRACTSAND ALL OF THIS  DEMAND HAPPENED WITH A 13 CENT FALL IN PRICE OF SILVER  AND A CLOSING PRICE OF $15.43 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. 0.978 BILLION OZ TO BE EXACT or 138% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT FEBRUARY MONTH/ THEY FILED AT THE COMEX: 40 NOTICE(S) FOR  200,000 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: 27.120 MILLION OZ/
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018) AND NOW AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

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

 

IN GOLD, THE OPEN INTEREST FELL BY A HUMONGOUS 15,290 CONTRACTS, TO 509,575 WITH THE  FALL IN THE COMEX GOLD PRICE/(A DROP IN PRICE OF $7.30//YESTERDAY’S TRADING).  YESTERDAY I COMMENTED ON MONDAY’S OI READINGS: “NO EVIDENCE OF ANY SPREADING LIQUIDATION IN GOLD AS WE ARE NOW APPROACHING FIRST DAY NOTICE IN AN ACTIVE DELIVERY MONTH.” I THINK WE JUST HAD OUR INITIAL HUGE FALL IN OPEN INTEREST DUE TO THE LIQUIDATION OF THE SPREADERS.

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 9682 CONTRACTS:

MARCH HAD AN ISSUANCE OF 0 CONTACTS  APRIL 8760 CONTRACTS,JUNE: 922 CONTRACTS DECEMBER: 0 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 509,575. 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 STRONG SIZED LOSS IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 5608 CONTRACTS: 15,290 OI CONTRACTS DECREASED AT THE COMEX AND 9682 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI LOSS OF 5608 CONTRACTS OR 560,800 OR  17.44 TONNES.

YESTERDAY WE HAD A FALL IN THE PRICE OF GOLD TO THE TUNE OF $7.30....AND WITH THAT, WE HAD A CONSIDERABLE LOSS IN TONNAGE OF 17.44 TONNES!!!!!!. (HOWEVER ALL OF THE COMEX LOSS IS PROBABLY DUE TO THE LIQUIDATION OF THE SPREADERS)

 

 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MARCH : 134,498 CONTRACTS OR 13,449,800 OR 418.34 TONNES (19 TRADING DAYS AND THUS AVERAGING: 7078 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 19 TRADING DAYS IN  TONNES: 3418.34 TONNES

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

THUS EFP TRANSFERS REPRESENTS 418.34/2550 x 100% TONNES = 16.40% OF GLOBAL ANNUAL PRODUCTION SO FAR IN DECEMBER ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     1287.30 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 STRONG SIZED  DECREASE IN OI AT THE COMEX OF 10,924 WITH THE LOSS IN PRICING ($7.30) THAT GOLD UNDERTOOK YESTERDAY) //.WE ALSO HAD A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 9682 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 9682 EFP CONTRACTS ISSUED, WE  HAD A VERY SMALL LOSS OF 1242 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

9682 CONTRACTS MOVE TO LONDON AND 15,290 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE LOSS IN TOTAL OI EQUATES TO 17.44 TONNES). ..AND ALL OF THIS LACK OF DEMAND OCCURRED WITH A FALL IN PRICE OF $7.30 IN YESTERDAY’S TRADING AT THE COMEX!!!!! HOWEVER THERE IS STRONG EVIDENCE THAT AGAIN WE HAVE LIQUIDATION OF SPREADERS AS WE HEAD INTO AN ACTIVE DELIVERY MONTH.

 

 

 

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 DOWN $4.05  TODAY 

 

VERY STRANGE!!  A BIG CHANGE IN GOLD INVENTORY

A DEPOSIT OF 3.23 TONNES

 

 

 

 

 

 

 

INVENTORY RESTS AT 784.26 TONNES

 

 

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

 

SLV/

WITH SILVER DOWN 12 CENTS  IN PRICE  TODAY:

NO CHANGES IN SILVER INVENTORY AT THE SLV TODAY

 

 

 

/INVENTORY RESTS AT 309.488 MILLION OZ.

 

 

end

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

1. Today, we had the open interest in SILVER FELL BY A SMALL SIZED 440 CONTRACTS from 193,116 UPTO 192,676 AND FURTHER FORM 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., 1017 FOR MAY AND  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1017 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 440 CONTRACTS TO THE 1017 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE  OBTAIN A GAIN OF 577  OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 2.885 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 27.120 MILLION OZ FOR MARCH.

 

 

RESULT: A SMALL SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 13 CENT FALL IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY.BUT WE ALSO HAD A STRONG SIZED 1017 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)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED UP 25.62 POINTS OR 0.85% //Hang Sang CLOSED UP 161.34 POINTS OR 0.56%  /The Nikkei closed DOWN 49.66 POINTS OR 0.23%/ Australia’s all ordinaires CLOSED UP 0.07%

/Chinese yuan (ONSHORE) closed DOWN  at 6.7241 AS TRUCE DECLARED FOR 3 MONTHS /Oil DOWN to 59.53 dollars per barrel for WTI and 67.72 for Brent. Stocks in Europe OPENED RED 

ONSHORE YUAN CLOSED DOWN // LAST AT 6.7241 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.73127 / TRADE TALKS NOW ON/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

 

 

 

 

 

 

 

 

 

 

 

3A//NORTH KOREA

 

 

 

 

b) REPORT ON JAPAN

 

 

 

3 C/  CHINA

 

4/EUROPEAN AFFAIRS

i)UK/ LAST NIGHT

 

This is not good:  only 7% of all Britons support Theresa May’s handling of Brexit.

(courtesy zerohedge)

ii)ECB

As you know Europe has negative rates.  Now the ECB is contemplating stopping the payment by banks with respect to excess reserves. Japan is doing this but it has had little effect on helping the banks return to profitability

a real mess..

( zerohedge)

iii)Germany

Now we have German Semi Conductor companies join the USA in reporting lack of revenue growth.  Today Infineon slashes revenue growth outlook by a huge 50%/
(zerohedge)

IV)THIS MORNING/GERMANY

The entire world is turning “Japanese” as bond yields tumble as well as huge inversions especially the 3 month/10 yr bond yield.  Markets seem to ignoring this very important development.

(courtesy zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)Turkey

Erdogan realizes his countries economy is in a mess as he needs outside funding namely in dollars.  However the central bank bought out just about all liquidity which caused overnight swaps to hit 700%..totally unheard of… Turkey, in order to survive must need dollars and by causing overnight swaps to rise, the opposite occurs..funding disappears.  Credit default swaps skyrocketed to 478% last night.

LATE IN THE DAY:  SWAPS HIT 1000%/IT SURE LOOKS LIKE TURKEY MAY FAIL

( zerohedge)

ii)ISRAEL/GAZA

Israel strikes the GAZA strip again last night despite reports of a cease fire

(courtesy zerohedge)

6. GLOBAL ISSUES

Canada

Canada might stop Trump’s NAFTA deal if he does not stop steel and aluminum tariffs

( Mish Shedlock/Mishtalk)

ii)SWEDEN 

Swedbank is one of the oldest banks in Sweden founded in 1820.  These guys are now next in line in the money laundering business and this scandal is huge and may implicate Manafort. Their offices were raided early this morning.

( zerohedge)

 

 

7. OIL ISSUES

Venezuela is the the USA sphere of influence.  However both China and Russia lent money to Venezuela and now Russian troops are on the ground in Venezuela as Putin wants his money back

(courtesy zerohedge)

 

 

 

 

8 EMERGING MARKET ISSUES

 

 

Venezuela/Russia/USA

Venezuela is the the USA sphere of influence.  However both China and Russia lent money to Venezuela and now Russian troops are on the ground in Venezuela as Putin wants his money back

(courtesy zerohedge)

 

 

 

9. PHYSICAL MARKETS

i)Craig Hemke writes on the short squeeze on Palladium

( Craig Hemke/Sprott/GATA)

ii)Economist Todd Stein of Fox Business claims that a “soft” default i.e. a huge devaluation of the dollar will not be as catastrophic as a hard default i.e. not paying off its bills. I beg to differ

( Todd Stein/Fox News)

iii)Peter Grandich is back reporting on gold.  He comments that gold will overcome the price suppression engineered by governments and central banks. He expects them to restore gold to its rightful place in the financial system

( Peter Grandich/GATA)

iv)My goodness: whistleblowers awarded 50 million dollars for blowing the whistle on JPMorgan?
I guess we do not count.
(courtesy Bloomberg/Robinson/GATA)

v  )I liked Jim Willie’s latest piece as he zeros in on the fraud at GLD, exactly how I described to you what is happening in this crooked arena.(courtesy Jim Willie)

a must read

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

 

 

MARKET TRADING//early this morning

 

 

 

 

ii)Market data

a)Trump will be pleased with this as the USA trade deficit shrank to 51.1 billion dollars form 60 billion dollars.  However they still have a long way to go

( zerohedge)

b)I promised you that Stephen Moore was going to be a handful for the Fed officials.  He is calling for a 50 basis point cut in the Federal funds rate.  This is why bond yields have been plummeting across the globe today

( zerohedge)

ii)USA ECONOMIC/GENERAL STORIES

a)Look what happens if you have a cell tower next to your home.  I can vouch for cancer problems with this.  We had a hydro electric plant next to our house and many children developed cancer. They tried to tell us that it was the hydro electric plant but we knew otherwise.

( zerohedge)

( zerohedge)

 

iv)SWAMP STORIES

a)The Mueller report will be released in weeks and not months.  The White House may receive an advanced copy of the full report in case they wish to place executive privilege of some of the stuff

( zerohedge)

b)the big question: did Mueller know that there was no Trump Russia collusion well before the midterms?
(courtesy Andrew McCarthy/FoxNews)
c)This guy Swalwell is one big joke: he still maintains Trump is a Russian asset despite the Mueller findings
(courtesy zerohedge)

end

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

 

end

 

 

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN REVERSED COURSE AND FELL BY 15,290 CONTRACTS DOWN TO A LEVEL OF 509,575 WITH THE LOSS IN THE PRICE OF GOLD ($7.30) IN YESTERDAY’S // COMEX TRADING) AND NO DOUBT WE WITNESSED OUR USUAL AND CUSTOMARY DEPLETION OF SPREADERS AS WE HEAD INTO FIRST DAY NOTICE OF AN ACTIVE DELIVERY MONTH!!

WE ARE NOW IN THE  NON ACTIVE DELIVERY MONTH OF MARCH..  THE CME REPORTS THAT THE BANKERS ISSUED A STRONGSIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 9682 EFP CONTRACTS WERE ISSUED:

FOR MARCH:  0. FOR APRIL 8760 FOR JUNE: 922 CONTRACTS AND FINALLY DECEMBER: 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  9682 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 LOST THE FOLLOWING TODAY ON OUR TWO EXCHANGES: 5608 TOTAL CONTRACTSIN THAT 9682 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A STRONG SIZED 15,290COMEX CONTRACTS.  

 

NET LOSS ON THE TWO EXCHANGES ONLY::5608 contracts OR 560800 OZ OR 17.44 TONNES.

 

We are now in the NON active contract month of MARCH and here the open interest stands at 1 contracts  for a  loss of 11 contracts.We had 11 notices served upon yesterday so we  LOST 0 contracts or AN ADDITIONAL NIL 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 27,106 contracts down to 102,259 contracts. The non active month of May lost 35 contracts DOWN to 1214 open interest.  After May, the next active delivery month is June and here the OI stands at 297,922 having gained 8472 contracts.

 

 

 

 

TODAY’S NOTICES FILED:

WE HAD 1 NOTICES FILED TODAY AT THE COMEX FOR 1 OZ. (0.00315 tonnes)

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total COMEX silver OI FELL BY A SMALL SIZED 440CONTRACTS FROM 193,116 DOWN TO 192,250(AND CLOSER TO THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S SMALLOI COMEX LOSS  OCCURRED WITH A 13 CENT FALL IN PRICING.//YESTERDAY 

 

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF MARCH AND THE  OPEN INTEREST IN THIS FRONT MONTH RESTS AT 40 HAVING LOST 4CONTRACTS.

WE HAD 4 NOTICES FILED ON FRIDAY SO WE GAINED 0 CONTRACTS OR NIL 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.

 

 

 

 

AFTER MARCH, WE HAVE THE NON ACTIVE DELIVERY MONTH OF APRIL.  HERE: APRIL LOWERS TO  767 CONTRACTS FOR A LOSS OF 7 CONTRACTS.  AFTER APRIL, THE NEXT BIG ACTIVE DELIVERY MONTH IS MAY AND HERE THE OI FELL BY 2276 CONTRACTS DOWN TO 133,984 CONTRACTS.

 

 

 

 

 

 

ON A NET BASIS WE GAINED A SMALL 577 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A 440 CONTRACT LOSS AT THE COMEX COMBINING WITH THE ADDITION OF 1017 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN ON THE TWO EXCHANGES:  577CONTRACTS...AND ALL OF THIS STRONG  DEMAND OCCURRED WITH A 13 CENT GAIN IN PRICING// YESTERDAY 

 

 

 

 

 

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 40 notice(s) filed for 200,000OZ for the MARCH, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY:  385,622  CONTRACTS

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  401,448  contracts

 

 

 

 

 

 

 

 

Initial standings for  MAR/GOLD

MAR 27 /2019.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
2057.60
oz
Scotia
64 kilobars
Deposits to the Dealer Inventory in oz nil

oz

 

 

 

 

 

 

Deposits to the Customer Inventory, in oz  

 

 

 

 

500.000

oz

 

HSBC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No of oz served (contracts) today
1 notice(s)
 nil OZ
(0.00315 TONNES)
No of oz to be served (notices)
0 contracts
(NIL oz)
Total monthly oz gold served (contracts) so far this month
396 notices
39600 OZ
1.23176 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: 500.000 oz

total gold deposits: 500.000 oz

 

 very little gold arrives from outside/today zero.

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  11 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 (396) x 100 oz , to which we add the difference between the open interest for the front month of MAR. (1 contract) minus the number of notices served upon today (1 x 100 oz per contract) equals 39,600 OZ OR 1.2317 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 (385 x 100 oz)  + {1)OI for the front month minus the number of notices served upon today (1 x 100 oz )which equals 39,600oz standing OR 1.2317 TONNES in this active delivery month of MARCH.

We LOST 0 contracts or an ADDITIONAL NIL OZ WILL STAND AT THE COMEX AS THEY REFUSED TO  MORPH INTO LONDON BASED FORWARDS AS WELL AS  NEGATING 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:  362,403.275 oz or  11.272 tonnes
total registered and eligible (customer) gold;   8,032.321.701 oz 249.83 tonnes

FOR COMPARISON FIRST DAY NOTICE FOR APRIL 2018 AND FINAL STANDING APRIL 30 2018

AT FIRST DAY NOTICE APRIL 1.201819.897 TONNES STOOD FOR DELIVERY

AT CONCLUSION APRIL 30/2018:  ONLY 4.6407 TONNES STOOD AS THE REST MIGRATED TO LONDON THROUGH EFP’S

ON MARCH 27.2018 WE HAD 108,630 CONTRACTS LEFT TO BE SERVED UPON WITH 1 DAY BEFORE FIRST DAY NOTICE FOR THE FRONT APRIL CONTRACT.

ON MARCH 27: 2019 WE HAVE 102,259 CONTRACTS LEFT TO BE SERVED UPON WITH  2 DAYS LEFT BEFORE FIRST DAY NOTICE (March 29/2019)

 

 

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

THE FINAL AMOUNT OF GOLD TONNAGE: MARCH 31/20181.6114 TONNES AS THE REST MORPHED INTO LONDON BASED FORWARDS.

IN THE LAST 30 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 27 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
112,281,580 oz
CNT

 

 

Deposits to the Dealer Inventory
nil oz
Deposits to the Customer Inventory
1,199,007.720
oz
CNT’
Scotia
No of oz served today (contracts)
40
CONTRACT(S)
200,000 OZ)
No of oz to be served (notices)
0 contracts
NIL oz)
Total monthly oz silver served (contracts) 5424 contracts

(27,120,000 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  2 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  599,847.800 oz

ii) Into Scotia:  599,159.920 oz

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

total customer deposits today:  1,199,007.720   oz

 

we had 1 withdrawals out of the customer account:
i) Out of CNT: 112,281.550 oz

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

total withdrawals: 112,281.550  oz

 

we had 2 adjustments

and they were doozies:

i) Out of Brinks:  3,620,000.000 oz was adjusted out of the  dealer and into the customer

ii) Out of CNT:  721,915.214 oz

 

 

total dealer silver:  91.112 million

total dealer + customer silver:  304.393 million oz

 

 

 

 

The total number of notices filed today for the MARCH 2019. contract month is represented by 40 contract(s) FOR  200,000  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 5424 x 5,000 oz = 27,120,000 oz to which we add the difference between the open interest for the front month of MAR. (40) and the number of notices served upon today (40 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAR/2019 contract month: 5424(notices served so far)x 5000 oz + OI for front month of MAR( 40) -number of notices served upon today (40)x 5000 oz equals 27,120,000 oz of silver standing for the MAR contract month.  This is a strong number of oz standing for an off delivery month.

We gained 0 contracts or an additional NIL oz will stand as investors continue to shun morphing into London based EFP’s  as well as negating a fiat bonus.

 

 

 

FOR COMPARISON VS LAST YEAR:

 

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. (MARCH IS AN ACTIVE MONTH)

ON  FIRST DAY NOTICE MARCH 29/2018: WE HAD 1,805,000 OZ STAND FOR DELIVERY FOR THE APRIL DELIVERY MONTH

AT CONCLUSION OF APRIL: 2,485,000 OZ STOOD FOR DELIVERY AS QUEUE JUMPING WAS ALREADY WELL DEVELOPED IN SILVER. (APRIL IS A NON ACTIVE SILVER DELIVERY MONTH)

 

 

 

 

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

TODAY’S SILVER VOLUME:  57,335 CONTRACTS

 

 

 

CONFIRMED VOLUME FOR YESTERDAY: 59,488 CONTRACTS… (

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 59,488 CONTRACTS EQUATES to 297 million OZ  42.40% OF ANNUAL GLOBAL PRODUCTION OF SILVER

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

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

end

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV FALLS TO -2.70% (MAR27/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.79% to NAV (MAR27/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -2.70%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 13.15/TRADING 12.68/DISCOUNT 3.60

END

And now the Gold inventory at the GLD/

 

MARCH 27/SURPRISING! WITH GOLD DOWN AGAIN BY $4.05, THE CROOKS NEEDED TO PUT GOLD BACK INTO THE GLD: THEY ADDED 3.23 TONNES OF GOLD INTO THE GLD//INVENTORY RESTS AT 784.26 TONNES

MARCH 26/WITH GOLD DOWN $7.30 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 781.03 TONNES

MARCH 25/WITH GOLD UP $9.85: A STRONG 2.94 TONNES DEPOSIT INTO THE GLD/INVENTORY RESTS AT 781.03 TONNES

MARCH 22/WITH GOLD UP $5.00 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 778.09 TONNES

MARCH 21/WITH GOLD UP $7.00 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 778.09 TONNES

March 20/WITH GOLD DOWN $5.15 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 778.09 TONNES

MARCH 19/WITH GOLD UP $4.60 TODAY: A MASSIVE 8.23 TONNES OF PAPER GOLD ADDED TO THE GLD INVENTORY/INVENTORY RESTS AT 779.27 TONNES AND THEN A WITHDRAWAL OF 1..18 TONNES OF GOLD REMOVED:  TOTAL GLD INVENTORY REMAINING:  778.09 TONNES

MARCH 18/WITH GOLD DOWN  $0.70: A BIG CHANGE TODAY: A WITHDRAWAL OF 1.32 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 771.04 TONNES

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 27/2019/ Inventory rests tonight at 784.26 tonnes

*IN LAST 567 TRADING DAYS: 150.69 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 467 TRADING DAYS: A NET 16.13 TONNES HAVE NOW BEEN ADDED INTO THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

MARCH 27/WITH SILVER DOWN 12 CENTS; NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.488 MILLION OZ//

MARCH 26/WITH SILVER DOWN 13 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.488 MILLION OZ//

MARCH 25/WITH SILVER UP 15 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.488 MILLION OZ////

MARCH 22/WITH SILVER DOWN 7 CENTS TODAY: A BIG CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 1.356 MILLION OZ///INVENTORY RESTS AT 309.488 MILLION OZ///

MARCH 21/WITH SILVER UP 15 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 310.848 MILLION OZ/

March 20/WITH SILVER DOWN 4 CENTS TODAY: NO CHANGES  IN SILVER INVENTORY//INVENTORY RESTS AT 310.848 MILLION OZ//

MARCH 19/WITH SILVER UP 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY/INVENTORY RESTS AT 310.848 MILLION OZ/

MARCH 18/WITH SILVER DOWN 2 CENTS TODAY: NO CHANGES IN SILVER INVENTORY//INVENTORY RESTS AT 310.848 MILLION OZ///

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 27/2019:

 

Inventory 309.488 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 2.19/ and libor 6 month duration 2.68

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

G0LD LENDING RATE: + .49

 

 

XXXXXXXX

12 Month MM GOFO
+ 2.44%

LIBOR FOR 12 MONTH DURATION: 2.72

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.28

end

 

PHYSICAL GOLD/SILVER STORIES

end
i) GOLDCORE BLOG/Mark O’Byrne

Gold Gains On Recession Concerns and ‘No Deal’ Brexit Risks

– Gold gains due to concerns about slowing growth, monetary and geopolitical risks
– Increasing possibility of ‘No Deal’ Brexit heightens recession risks in UK, Ireland
– Brexit uncertainty is impacting UK & Irish economies; Likely do long term damage
– UK sees sharp slowdown in mortgage approvals in February as housing market slows
– Gold surges to near all time record highs in Australian dollars at $1,860/oz
– Gold in sterling, euros and dollars to follow Aussie dollar in coming months


Gold in GBP (1 Year)

Gold rose to 4 week highs overnight prior to profit taking saw the yellow metal give up some of those gains. Gold marched higher yesterday, extending it’s recent rally due to growing, if belated, concerns over slowing economic growth and the Federal Reserve’s move to looser monetary policies again.

Gold rose 0.8% yesterday to $1,323.40 per ounce which was it’s highest level in a month. Investors have diversified into safe haven gold following news the Fed expects to suspend interest rate rises in 2019. This was something we wrote and spoke about (podcast and video interviews) as inevitable given the fragile nature of the economic recovery.

Even greater uncertainty around Brexit,  just three days before Britain’s scheduled departure from the EU on March 29th may impact sterling and markets and should support gold, especially in sterling which has risen to the £1,000/oz level again.

The UK saw a sharp slowdown in mortgage approvals in February which suggests heightened Brexit uncertainties is taking its toll on the UK housing market. UK banks approved the fewest mortgages in six years as Brexit nears and unsecured consumer credit growth also slowed.

The FTSE 100 joined European stock market counterparts in heading lower yesterday as Brexit worries permeate through European markets.

There will be a very negative impact on Ireland’s economy in the long-term as a result of Brexit, a new report by the Irish ESRI and Department of Finance has concluded. The European Commission (EC) said yesterday that it has completed preparations for a no-deal Brexit, noting “it is increasingly likely that the United Kingdom will leave the European Union without a deal on 12 April”.

Along with gold, certain government bonds have gained, pushing yields to their lowest level in more than a year, while one yield curve measure has inverted for the first time since August 2007. The inversion of the yield curve for three-month and 10-year Treasuries has righted led to recession worries in the market and led to sell offs in stock markets in recent days.

Markets were already attempting to come to grips with weaker economic data of late including poor global manufacturing data and US consumer spending.

Spot gold was up about 1 per cent last week, notching a third consecutive week of gains. Gold has gained nearly 13 per cent since it’s most recent sell off in August.


Complimentary Storage In Zurich For 6 Month when you purchase the minimum amount of 10,000 ($€£) in physical gold and or silver for a limited time only

 

 

News and Commentary

Gold has highest finish in a month as global market jitters persist (MarketWatch.com)

Gold hits 3-week high as global growth fears lift safe-haven appeal (Reuters.com)

Asian shares shaky as U.S. bond yields hit lowest since late 2017 (Reuters.com)

U.S. Treasury yields hit lowest since late 2017, global stocks fall (Reuters.com)

Fed should consider holding more short-term bonds: Rosengren (Reuters.com)


Source: St Louis Fed

A genuinely scary moment for markets (MoneyWeek.com)

The Staggering Amount Of Gold & Silver Investment Since The 2008 Financial Crisis (Twitter.com)

What an Inverted Yield Curve means to the market (Youtube.com)

Over $10 Trillion In Debt Now Has A Negative Yield (ZeroHedge.com)

The Gold Trade Note Has Been Introduced, The [CB] Is On The Chopping Block:Jim Willie (Youtube.com)

Marc Faber – Huge Asset Bubble Will Be Deflated (Youtube.com)

20 Days Left to Find Buying Opportunities in Gold (TheTechnicalTraders.com)

Gold Prices (LBMA PM)

25 Mar: USD 1,319.35, GBP 1001.39 & EUR 1,165.82 per ounce
22 Mar: USD 1,311.10, GBP 998.80 & EUR 1,159.41 per ounce
21 Mar: USD 1,317.30, GBP 1002.99 & EUR 1,155.80 per ounce
20 Mar: USD 1,303.00, GBP 985.07 & EUR 1,147.81 per ounce
19 Mar: USD 1,308.35, GBP 985.06 & EUR 1,152.53 per ounce
18 Mar: USD 1,305.35, GBP 986.19 & EUR 1,150.01 per ounce

Silver Prices (LBMA)

25 Mar: USD 15.52, GBP 11.77 & EUR 13.72 per ounce
22 Mar: USD 15.46, GBP 11.75 & EUR 13.68 per ounce
21 Mar: USD 15.54, GBP 11.85 & EUR 13.64 per ounce
20 Mar: USD 15.32, GBP 11.58 & EUR 13.49 per ounce
19 Mar: USD 15.41, GBP 11.61 & EUR 13.57 per ounce
18 Mar: USD 15.38, GBP 11.60 & EUR 13.54 per ounce

Recent Market Updates

– America’s “Debt Crisis Is Coming Soon”
– Russia Buys 1 Million Ounces Of Gold In February – Become Your Own Central Bank
– 5 Ways to Prosper In the Coming Crisis – Goldnomics Podcast
– Deutsche Bank and Commerzbank May Become EU’s “Too Big To Fail” Bank
– Happy Saint Patrick’s Day from GoldCore
– 188 Internet Shutdowns In 2018 Show Why Physical Gold Is Ultimate Protection
– Buy Gold as Basel III Means “Central Banks and Banks Are Going To Be Buying Gold”
– Invest In Gold Or Bitcoin – Which Is The True Store Of Value?
– Silver Bullion Is The Portfolio Insurance To Buy Now

Mark O’Byrne
Executive Director
 

GATA STORIES WITH RESPECT TO GOLD/PRECIOUS METALS.

Craig Hemke writes on the short squeeze on Palladium

(courtesy Craig Hemke/Sprott/GATA)

Craig Hemke at Sprott Money: An inflection point for palladium?

 Section: 

11:48a SST Wednesday, March 27, 2019

Dear Friend of GATA and Gold:

The short squeeze in palladium is showing signs of moderating, the TF Metals Report’s Craig Hemke writes this week at Sprott Money, while adding that the metal’s upward price trajectory remains intact. It is still an open question, Hemke writes, whether the commodity market-rigging banks will regain control of the market or whether an explosion in palladium will impugn their rigging in the monetary metals markets. Hemke’s analysis is headlined “An Inflection Point for Palladium?” and it’s posted at Sprott Money here:

https://www.sprottmoney.com/Blog/an-inflection-point-for-palladium-craig…

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

end

Economist Todd Stein of Fox Business claims that a “soft” default i.e. a huge devaluation of the dollar will not be as catastrophic as a hard default i.e. not paying off its bills. I beg to differ

(courtesy Todd Stein/Fox News)

Todd J. Stein: U.S. should do a ‘soft’ default on its debt by devaluing dollar

 Section: 

By Todd J. Stein
FOX Business, New York
Tuesday, March 19, 2019

Last month, the national debt Opens a New Window. surpassed $22 trillion — or nearly $180,000 per taxpayer. That figure will roughly double within three decades, since spending on Social Security, Medicare, and Medicaid will balloon as America’s population ages.

Such stratospheric debt levels will be completely untenable — it’d be like saddling every taxpayer with an additional mortgage on top of his or her existing housing, credit card, and student loans. Most tax revenue would go toward interest on the debt, leaving little for safety-net programs, the military, or core government functions. By 2050 the federal government will spend more on interest payments than Social Security, health care, or national defense. …

Our leaders have dug us into a hole. And the best way out is a “soft” default on the national debt.

A hard default, where the government simply refuses to pay its debts, would cause a global economic meltdown. Dollar-denominated Treasuries and federal reserve notes are the lifeblood of the global financial system.

But a soft default — a one-time devaluation of the dollar that enables the government to pay back its debts in full, albeit at a lower intrinsic value — needn’t be catastrophic.

Here’s how a soft default would work. …

… For the remainder of the commentary:

https://www.foxbusiness.com/economy/the-federal-government-should-defaul…

end

Peter Grandich is back reporting on gold.  He comments that gold will overcome the price suppression engineered by governments and central banks. He expects them to restore gold to its rightful place in the financial system

(courtesy Peter Grandich/GATA)

Peter Grandich: Why gold is set to shine again

 Section: 

1:47p SST Wednesday, March 27, 2019

Dear Friend of GATA and Gold:

It’s good to hear GATA’s old friend, former market analyst and financial letter writer Peter Grandich, commenting again on gold’s prospects in a podcast on his internet site. Grandich sees a number of factors helping the monetary metal gradually to overcome the price suppression engineered by certain governments and central banks. He also expects other governments and central banks to restore gold formally to the world financial system. Grandich’s comments are headlined “Gold Set to Shine,” are 10 minutes long, and can be heard here:

http://petergrandich.com/2019/03/25/grandich-podcast-gold-set-to-shine/

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


iii) Other Physical stories
My goodness: whistleblowers awarded 50 million dollars for blowing the whistle on JPMorgan?
I guess we do not count.
(courtesy Bloomberg/Robinson/GATA)

Whistleblowers awarded $50 million by SEC in JPMorgan Case

 Section: 

By Matt Robinson and Neil Weinberg
Bloomberg News
Tuesday, March 26, 2019

The U.S. Securities and Exchange Commission agreed to pay a total of $50 million to a pair of whistleblowers who provided information that helped the agency win a $267 million settlement with JPMorgan Chase & Co. over claims that the bank failed to inform wealthy clients of conflicts of interest in managing their money.

One of the informants will get $37 million, the third-biggest payout in the history of the SEC’s whistleblower program, the agency said in a statement today. The SEC didn’t name the company involved or the people getting the awards, citing federal law that protects confidentiality.

Labaton Sucharow, a law firm that represents one of the whistleblowers, disclosed the link to the JPMorgan case after the SEC’s announcement.

“Blowing the whistle is rarely easy, and it certainly hasn’t been for my client, but this historic SEC whistleblower award and related enforcement action reaffirm that doing the right thing pays,” Jordan Thomas, the whistleblower lawyer, said in a statement. Thomas said his client is a JPMorgan executive. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-03-26/two-whistleblowers-aw…

And here is the Bloomberg story in full:

Two Whistleblowers Awarded $50 Million In “Massive Enforcement Action” Against JPMorgan

The SEC today announced awards totaling $50 million to “two whistleblowers whose high-quality information assisted the agency in bringing a successful enforcement action.” The whistleblowers provided information that helped the agency win a $267 million settlement with JPMorgan over claims that the bank failed to inform wealthy clients of conflicts of interest in managing their money.

One of the whistleblowers will receive $13 million for reporting a tip to the SEC that led to a massive enforcement action charging J.P. Morgan. The second informant will receive $37 million, the third-biggest payout in the history of the SEC’s whistleblower program, the agency said in a statement. The SEC didn’t name the company involved or the people getting the awards, citing federal law that protects confidentiality.

Jordan A. Thomas, chair of Labaton Sucharow’s Whistleblower Representation Practice, served as counsel to the whistleblower, a J.P. Morgan executive, who cooperated in the agency’s investigation. The case, in which JPM agreed to pay $267 million to settle the charges in December 2015, is one of the largest enforcement actions initiated by an SEC whistleblower since the SEC Whistleblower Program was enacted.

“Blowing the whistle is rarely easy, and it certainly hasn’t been for my client, but this historic SEC whistleblower award and related enforcement action reaffirms that doing the right thing pays,” said Mr. Thomas, himself pocketing several million of the SEC award. “Thanks to the SEC Whistleblower Program, today corporate whistleblowers know that the Commission has their back and blowing the whistle anonymously dramatically increases the probability of a happy ending”… certainly one for the law firm which will likely keep about a third of the gross proceeds for filing some paperwork and sending out a few Fedexes.

In December 2015, JPMorgan agreed to pay more than $300 million to the SEC and to the CFTC when it admitted disclosure failures from 2008 to 2013 related to two units that manage money – its securities subsidiary and its nationally chartered bank – as part of the SEC settlement.

“Whistleblowers like those being awarded today may be the source of ‘smoking gun’ evidence and indispensable assistance that strengthens the agency’s ability to protect investors and the capital markets,” Jane Norberg, chief of the  SEC’s whistleblower office, said in the agency’s statement.

As Bloomberg reminds us, tipsters are eligible for payouts if they voluntarily provide the SEC with unique information that leads to a successful enforcement action. Compensation can range from 10 to 30% of the money collected in a case where sanctions exceed $1 million. While the SEC has paid out about $376 million since issuing its first award in 2012, today’s award was the agency’s first since September.

end

I liked Jim Willie’s latest piece as he zeros in on the fraud at GLD, exactly how I described to you what is happening in this crooked arena.

(courtesy Jim Willie)

a must read….

GLD Fund: Divergence Signals Shortage


By: Jim Willie CB, GoldenJackass.com

— Published: Wednesday, 27 March 2019

A Perfect Storm is hitting the Gold market, with an internal factor (QE), an external factor (SGE), and a systemic factor (Basel)All three forces are positive in releasing Gold from the corrupt clutches of the Anglo- American banker organization. The West has an all-out blitz to ditch the USDollar and to adopt the Gold Standard in its early form, namely trade payment. In the last ten years since the Lehman Brothers failure, all systems have undergone the same reckless treatment that the mortgage bonds endured. Slowly the realization is coming to the fore, stated by a few astute analysts. In the last decade, the US-UK banksters have created the USTreasury bond as the global subprime bond. This is the result of astounding persistent magnificent QE abuse, debt explosion, and hidden corruption. The so-called financial stimulus is actually hyper monetary inflation, which has destroyed the bond market. There are no legitimate USTreasury buyers outside the US foreign vassal states.

PERFECT FINANCIAL STORM

The perfect financial storm will be three to five times worse than the 2008 financial crisis that engulfed the subprime bond market. The corporate bond market is turning gradually into a $trillion BBB junk bond field and broken bone yard, after years of abused bond issuance devoted to share buybacks and executive options. It can be stated with accuracy that the entire global bond market is subprime, led by the USTBonds. In the last ten years, absolutely nothing has been fixed, no remedy even attempted, while all the errors, crimes, and reckless monetary policy that created the Lehman fiasco with the Global Financial Crisis, have been repeated on a global scale. Debt has exploded globally, and especially in the USGovt finances. The great unfolding crisis will engulf sovereign bonds, national banking systems, and major corporations. For the last ten years, the USD-based money supply has almost tripled. The process created a coiled spring. The Gold price is due to triple in compensation. Much lost time will be made up for. It just needs some internal, external, and systemic pushes. The Gold market will never let a crisis go to waste; it will respond.

The unfolding global crisis will expose the USTreasury Bond as toxic, the new subprime bond. It will struggle to maintain the safe haven status, but lose the battle. Gold will assume the safe haven status, along with other undetermined hard assets. Attempts by the Basel bunch of uber-bankers, who have no official authority over the Western central banks, will change the course of banking history. That Gold is made a risk-free Tier-1 asset will put forth a direct challenge to the USTBond in banking reserves. All systems will change.

GLD FUND FLASHING SIGNAL OF SHORTAGE

The GLD Exchange Traded Fund can serve as a very reliable early warning signal for a very tight gold supply, and corresponding Gold price upward moves. It signals shortage and tight supply now, with a divergence between London Gold price versus GLD Fund inventory in tonnage.

Consider a lesson on the GLD Exchange Traded Fund. Some preliminary remarks are necessary. It is a fund to deceive the public, whose prospectus is routinely violated by the London banksters. The GLD Fund is used as a magnet for naive ignorant lazy investors, lured to think they own gold. While they might enjoy the upside potential in the Gold price, their investment is a major vehicle used to keep the price down. Its inventory is raided by the US-UK banks, and sold into the market in regular frequent events. The big investors are often denied access to physical gold delivery, since not club members at the big banks, a violation. Nobody enforces the rule. The inventory contains real gold metal, but it is a massive vat for discharge into the market in pure price suppression by the criminal banker set. They manage the fund like a criminal slush fund. With each raid on the GLD vault, the LBMA official Gold price comes down. Notice the tight correlation in the graph below, except in recent months.

Evidence is clear. A divergence can now be seen, from the clear signal between the LBMA Gold price and the critically low GLD vault inventory. The Gold price is going up, while the GLD inventory is going down. Since three months ago, the divergence has begun to show itself. The chart shows data through February of this year.

Another key but subtle point of interest. The official inventory level of the GLD Fund includes gold in motion, a term to describe delivery from mining firms that is in transit. It is never truly in the vaults, since when a delivery is made, another delivery is in motion under new contract stipulation. By that is meant not just trucks loaded with bars, but trucks loaded with concentrated ore heading to refineries, plus bars under contract delivery within the quarter (three months). Furthermore, other gold shows up in the GLD inventory, but it is not available, such as private elite accounts, even pledged allocated gold.

Therefore the effective zero level is far above the posted zero level, which is often estimated by the expert analysts (like EuroRaj) to be around 400 to 600 tonnes gold, very much unknown.This is an important point, since the official GLD inventory is just above 750 tonnes currently. It has varied from 750 tonnes to 850 tonnes in the last 18 months, now near the effective zero mark. As the GLD vaults reach effective zero, the Boyz on Wall Street and London Centre lose the ability to reach into the vaults overnight in dumping exercises intended to pull the Gold price down. They essentially have a tool taken away.

Consider sage words from a Jackass colleague. The purpose of GLD is a private warehouse run by the Bank of England. When the public demand or central bank demand has to be met, they raid the inventory by redeeming share baskets and remove physical bars overnight. The redemption of shares is an act of selling of the paper that drives prices lower, when more exactly the process is actually driven by drainage of physical at this banker slush fund. There is physical gold but it belongs primarily to BOE and certain billionaires. The sheeple cannot get access to it unless they pony up enough cash for 10,000 ounces, and even then, they are often denied the metal. Since the USFed went dovish in December in a reversal of language away from further tightening, and toward more easing, the Gold price has been going up while the GLD Fund tonnage has been going down. The Big Boyz know the RESET is here. Refer to the divergence in progress for the last three months.

The clear signs of physical gold drainage lead to growing distrust in the entire USDollar & USTreasury framework like a creeping slow motion cancer. Gold drainage affects the delicate Supply & Demand equilibrium. The result is an assured imminent situation that reeks of financial instability. The true refuge will be Gold held in personal possession or with trusted access by agents. The irony could be that broken trust of the GLD Fund and broken trust of the LBMA/COMEX, complete with lawsuits, could bring down the paper game and lead the masses into true physical Gold holdings. For more background and other discussion, see Sprott Money (HERE) with a Craig Hemke interview.

DUAL UNIVERSE

The next stage for global finance will incorporate regional structures and platforms. The entire community of nations is making major adjustments as preliminary preparation to the Global RESET, in order to minimize the shock, disruption, and potential chaos. Expect regional themes to dominate, as the Dual Universe comes into form. The East will prefer to trade in Chinese RMB terms, and often in Euro terms. The West will prefer to conduct trade in USD terms, but also British Pounds in trace amounts within the old colonies. A dichotomy has formed with great geopolitical division amidst hostility and trade friction. The entire USFed QE initiative, coupled with unbridled $trillion USGovt debts, has fostered a rebellion amidst visible bond fraud. The rest of the globe is in active revolt, whose movement gains momentum each month. The transition period will involve the two dominant currencies at work: the USD and RMB. The USDollar will not go away quickly or easily. It is well rooted in trade payments systems, in credit systems, in banking systems, and more. The entire Langley seven silos of corrupt illegal enterprises (narcotics, weapons, human trafficking, human organs) are based in the USDollar, with gargantuan savings accounts and business investments. They will not go away anytime soon, which dictates an interim period. The Dual Universe has been born, without much fanfare. The Chinese RMB is to be the designated caretaker, used for ushering in the Gold Standard.

In the meantime, the United States will face an acute risk for the transition. It must assure import supply. The USTreasury Bill will no longer be trusted, or even accepted, following the RESET. Entirely new trade payments systems are coming, and the US will lose its privilege of paying for hard goods with phony money and IOU coupons. The USTBill has a fraudulent backing, an unlimited supply, fraudulent masters, and is coupled with massive debt which is widely seen as unpayable. The US must adapt to the Gold Trade Note in usage. It must contend with shortages and rising prices, following import supply interruptions. It must share global power, while losing the exceptional status. It must ward off isolation. It must reindustrialize. It must pay down the $22 trillion debt. It must source gold for the new currency. It must face the risk of a stark reality in the New Scheiss Dollar, a Third World conception, provided the USGovt resorts to its usual fraudulent finances.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

 

-END-

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

i) Chinese yuan vs USA dollar/CLOSED/ LAST AT: 6.7241/

 

//OFFSHORE YUAN:  6.7327   /shanghai bourse CLOSED UP 25.62 POINTS OR 0.85% /

 

HANG SANG CLOSED UP 161.34 POINTS OR 0.56%

 

 

2. Nikkei closed //DOWN 49.66 POINTS OR 0.23%

 

 

 

 

 

 

 

3. Europe stocks OPENED RED 

 

 

 

 

 

 

 

 

 

 

/USA dollar index FALLS TO 96.74/Euro FALLS TO 1.1270

3b Japan 10 year bond yield: RISES TO. –.07/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 110.37/ 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//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

3d USA/Yen rate now well below the important 120 barrier this morning

3e WTI:: 59.52 and Brent: 67.85

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO –.05%/Italian 10 yr bond yield UP to 2.54% /SPAIN 10 YR BOND YIELD DOWN TO 1.08%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.59: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield RISES TO : 3.80

3k Gold at $1318.50 silver at:15.46   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 43/100 in roubles/dollar) 64.84

3m oil into the 59 dollar handle for WTI and 67 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 110.28 DESTROYING JAPANESE CITIZENS WITH HIGHER FOOD INFLATION

30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning 0.9932 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1196 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 NEGATIVE territory with the 10 year FALLING to –0.05%

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 2.38% early this morning. Thirty year rate at 2.84%

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

6.  TURKISH LIRA:  UP  TO 5.4349

 

Global Stocks, US Futures Slide As Interest Rates Resume Plunge

Monday’s “recession off” optimism lasted just one day, and global markets and US equity futures are once again falling as yields resume their slide and the US yield curve inverts further.

After a brief respite on Monday when mortgage hedgers appeared to take the day off, treasuries resumed their rally with the 10Y yield tumbling as low as 2.35%, following the slide in Bunds as Germany auctioned off its first negative yielding debt with a negative yield at auction, as investors again turned their attention to a deteriorating economic outlook and a shift toward accommodation by major central banks. As a result, stocks in Europe reversed gains along with U.S. equity futures.

Europe’s Stoxx 600 fell, led by utilities and telecommunications shares, while S&P500 futures slipped, even though so far the selling is contained, with the Stoxx 600 down only ~0.4%, far cry from last Friday’s 1.2% rout.

The MSCI Emerging Markets Index’s 0.1% decline also looks tame compared with Monday’s 1.1% slide. Cyclical sectors such as autos and miners are in the green – car makers in particular are getting a boost from Nissan-Renault M&A chatter – and declines are largely confined to bond-proxy sectors. Dividend-paying sectors such as consumer staples, real estate and utilities are outperforming in the lower-for-longer era, according to Bloomberg.

Mario Draghi said in a speech in Frankfurt an accommodative policy stance is still needed in the euro region, although he hinted at possible rate tiering, noting that banks are being hurt by NIRP.

Earlier, Asian markets were mixed, though Chinese shares pushed higher as a burst of diplomacy suggests Beijing and Washington remain determined to de-escalate their trade war.  Markets got a reminder of global growth risks after Chinese data showed industrial profits shrank the most since late-2011 in the first two months of the year. Chinese mainland shares bounced almost one percent as expectations deepened of more central bank stimulus.

“Our view is that reflation story remains on track. We do expect the (Chinese) government to come to the rescue and provide some respite,” said Justin Onuekwusi, portfolio manager at Legal and General Investment Management. “It feels to me that markets had priced in a lower-for-longer (interest rate) environment even before central banks. They had come a long way very quickly and now they are taking a bit of a breather. Global growth overall looks reasonably healthy, despite the slowdown,” he added.

All eyes remain on the US bond market, however, where the key recession indicator, the 3 Month – 10 Year yield hit fresh post crisis lows, sliding as low as -11bps before rebounding modestly.

The U.S. yield curve inversion, which has preceded every U.S. recession for the last 50 years, triggered a sharp stock selloff last week. The drop in yields picked up pace after the U.S. Federal Reserve signaled a halt to its rate increases.

Meanwhile, speculation that the Fed will need to cut rates spread overnight, with some such as Legg Mason’s Brandywine Global

unit even forecasting a cut this year. Stephen Moore, President Trump’s pick for an open Fed board seat, said in an interview with the New York Times that the central bank should immediately cut rates by half a percentage point.

“The money-market curve is telling us that the Federal Reserve needs to do more,” Francis Scotland, director for global macro research at Brandywine, told Bloomberg TV in Hong Kong.

With the global economy headed for recession, traders will be especially focused on the outcome of U.S.-China trade talks, which resume this week, as well as any developments in Britain’s ridiculously interminable Brexit.

In the latest Brexit news, PM May will be urged by her own MPs to name the date of her departure today as the price of getting her Brexit deal through Parliament. PM May will be meeting with the 1922 Committee at 1700GMT today, according to Sky News. UK PM May’s team are debating a potential timetable for her to stand down, which might not necessarily see her make the announcement before MV3, according to the FT.

Additionally, the UK Cabinet Minister is now not expecting free votes for tonight’s indicative votes as some demanded, risking further resignations; according to Sky News’ Faisal Islam. BBC’s Nick Eardley added, however, that no decision has been made as of yet. Opposition Leader Corbyn is preparing to whip his MPs to back a move today that would keep Britain in the single market and customs union.

In overnight FX moves, the pound wobbled as a key Brexit hardliner indicated he’s willing to back Theresa May’s departure deal. But it was the New Zealand dollar that was the standout, tumbling more than 1% after the central bank joined its peers in the United States and Europe by turning dovish – it flagged a possible interest rates cut, sending the kiwi dollar 1.6 percent lower to its lowest in 2-1/2 weeks. The move also weighed on the Australian dollar.

“The market was taken by surprise by the dovish tone,” Thu Lan Nguyen, an analyst at Commerzbank said of the Reserve Bank of New Zealand. “Most central banks have turned dovish. Even those that hiked interest rates did it with a very cautious outlook on rates.”

The dollar index versus a basket of six major currencies was up 0.1 percent at 96.745, building on modest gains overnight.

In emerging markets, there were renewed concerns over Turkey and Argentina where currencies have fallen sharply in recent days. The lira liquidity squeeze has sent overnight swap rates on lira to 700 percent.

In commodities, WTI gave back some of its gains in the previous session after Russia said it was on track with output cuts and disruptions to refiners along the Houston Ship Channel added to supply concerns.

Trade balance and current account figures are due. Companies reporting earnings include Vale, Lululemon and Lennar

Market Snapshot

  • S&P 500 futures up 0.1% to 2,826.50
  • STOXX Europe 600 down 0.3% to 376.33
  • MXAP down 0.2% to 159.39
  • MXAPJ down 0.06% to 523.53
  • Nikkei down 0.2% to 21,378.73
  • Topix down 0.5% to 1,609.49
  • Hang Seng Index up 0.6% to 28,728.25
  • Shanghai Composite up 0.9% to 3,022.72
  • Sensex down 0.2% to 38,147.42
  • Australia S&P/ASX 200 up 0.09% to 6,135.97
  • Kospi down 0.2% to 2,145.62
  • German 10Y yield fell 2.4 bps to -0.039%
  • Euro down 0.04% to $1.1262
  • Brent Futures up 0.3% to $68.20/bbl
  • Italian 10Y yield fell 3.5 bps to 2.114%
  • Spanish 10Y yield fell 3.0 bps to 1.062%
  • Brent Futures up 0.3% to $68.20/bbl
  • Gold spot down 0.1% to $1,314.90
  • U.S. Dollar Index up 0.1% to 96.87

Top Overnight News

  • Mario Draghi said the ECB is ready to soften the impact of negative interest rates if they are found to harm the transmission of monetary policy. The ECB has kept its deposit rate below zero since June 2014 with policy makers insisting negative rates remain part of the tool kit.
  • U.K. PM Theresa May’s Brexit deal may finally be winning support from Conservative hardliners, though she may have to promise to step down to get it over the line. Meanwhile Parliament is preparing to vote on rival plans that could soften — or cancel — Britain’s departure from the European Union.
  • Three months after news first emerged of a hedge fund blowup that threatens to saddle Citigroup Inc. with millions of dollars in losses, details of the fund’s implosion are becoming clearer. GTEC Pandion fund, whose prime broker was Citigroup, started unraveling in August on currency trades mainly involving the Turkish lira.
  • U.S. and Chinese officials resume high-level trade talks this week as they close in on a deal that could just be the first step in the long road to economic peace.

Asian equity markets were mixed as the region somewhat failed to maintain the broad positive momentum from US where all majors finished in the green with the gains led by outperformance in energy and financials. ASX 200 (+0.1%) and Nikkei 225 (-0.2%) were both negative throughout the day although the Australian benchmark just about recovered at the close, while Tokyo stocks underperformed amid currency effects and mass ex-dividend day involving over 1000 stocks including blue-chips Mitsubishi UFJ, SoftBank and Sony. Elsewhere, Hang Seng (+0.6%) and Shanghai Comp. (+0.8%) were initially indecisive amid continued PBoC liquidity inaction and as participants mulled over another deluge of earnings, as well as discouraging data in which February YTD Industrial Profits slumped by the most in nearly a decade. However, sentiment in China then improved with energy names boosted by the recent advances in oil, while there was also reports confirming that China and Italy signed an MOU to make Italy the first western European country to join the Belt & Road initiative. Finally, 10yr JGBs were slightly higher as they tracked the marginal gains seen in T-notes and as the subdued risk appetite in Japan kept prices afloat.

Top Asian News

  • Hong Kong Property Prices May Rise 7% on Liquidity: JPMorgan
  • A $17 Billion Funding Challenge Facing China’s Evergrande
  • Euro Extends Drop Before Draghi; Pound Slips as Volatility Rises
  • Tata, GIC Buy $1.2 Billion Stake in Delhi Airport Operator

A relatively choppy session for European equities thus far [Eurostoxx 50 -0.4%] as sentiment soured after a mixed lead from Asia. Sectors are mostly lower although the consumer discretionary sector (+0.2%) is driving the gains amid the slew of positive news-flow for the auto sector. Renault (+3.4%) shares spiked higher at the open amidst fresh merger talks with Nissan ahead of a bid for Fiat Chrysler (+3.3%), whilst Daimler (+1.2%), BMW (+0.5%), and Volkswagen (+0.4%) shares also march in tandem. Reports stated Daimler was close to selling its 50% “Smart” stake to Geely, meanwhile Volkswagen struck a multi-year partnership with Amazon. Elsewhere utilities underperform despite its defensive properties with Centrica (-1.3%), National Grid (-1.4%), E.ON (-1.6%) all near the foot of their respective bourses. In terms of notable movers, Wirecard (-4.5%) shares shed some of yesterday’s gains after the company announced that some of its Singapore employees may face criminal liability regarding the ongoing accounting scandal. Finally, Swedbank (-7.8%) shares declined after the company confirmed that a search is currently underway at the head office, following on from reports that an internal investigation has been initiated by the Swedish Economic Crime Authority.

Top European News

  • May’s Deal Gains Support Ahead of Votes on Plan B: Brexit Update
  • Billionaire Ashley Weighs Bid Valuing Debenhams at $81 Million
  • Bank of Russia Says Inflation Expectations Fell Again in March
  • Wirecard CEO Braun: We Have No Plans to Release Full Report

In FX, all eyes were on the NZD/AUD as the Antipodean Dollars are back on the rack, with the Kiwi sharply underperforming in wake of OCR cut revelations from the RBNZ overnight after an unexpected switch from neutral to easing mode amidst a bleaker assessment of the economy and heightened risks of a more pronounced downturn. Nzd/Usd slumped over a big figure in response and is clinging to 0.6800, as the Aud/Nzd cross extended recovery gains well beyond 1.0300 to circa 1.0450 before consolidating, and with Aud/Usd retreating to sub-0.7100 at one stage on the back of worrying Chinese data in the form of industrial profits (-14% y/y and weakest in almost 10 years).

  • NOK – Another G10 laggard following a rise in Norwegian unemployment vs the consensus for an unchanged jobless rate, with Eur/Nok back up above 9.6500 vs a more stable SEK around 10.4200 vs the single currency amidst mixed Swedish sentiment indicators, a wider trade surplus and 2019 GDP forecast upgrade via the NIER.
  • JPY/CHF/EUR – Relative outperformers and all firmer vs the Greenback as the Jpy benefits from renewed safe-haven positioning within a 110.70-30 range and moves further away from decent option expiry interest sitting between 110.70-75 (1.4 bn). Similarly, the Franc is benefiting from another downturn in risk sentiment and revisits recent highs around 0.9900 and through 1.1200 against the Euro, which looked vulnerable independently when testing Tuesday’s lows vs the Buck around 1.1250 before some timely support from ECB President Draghi who contended that a more sustained downturn in external demand and other factors have merely hampered rather than scuppered Eurozone inflation convergence towards target. Eur/Usd has subsequently rebounded relatively firmly to challenge Fib resistance at 1.1280, but could be capped ahead of 1.1300 given hefty expiries spanning 1.1255-65 (1.5 bn).
  • GBP/CAD – The Pound remains rangebound around 1.3200 vs the Usd awaiting the next chapter of Brexit and up to 16 amendments to be voted on in Parliament after the Letwin approval – see our headline feed for a situation update and detailed analysis of all the motions tabled that could be selected by the HoC Speaker later today. Note, Cable survived an early downside attempt, and like Eur/Usd held around yesterday’s base, but is likely to face some offers around 1.3250 by the same token. Elsewhere, the Loonie is losing some support from oil prices with Usd/Cad towards the top of a 1.3407-1.3376 band ahead of trade data from Canada and the US.
  • DXY – The index has come up against some psychological and chart resistance just shy of 97.000, with a Fib at 96.956 only marginally and briefly breached. Moreover, the broad Dollar has conceded ground to the aforementioned comeback in rival currencies.

In commodities, the oil complex is extending losses as the risk-off sentiment took the wheel. WTI (-0.8%) futures gave up the recently claimed USD 60/bbl and flirts closer to USD 59.50/bbl whilst Brent futures (-0.3%) rests just below USD 68.00/bbl. Last night’s APIs showed a surprise build of 1.9mln barrels (vs. Exp. draw of 1.2mln) with trader eyeing the release of this week’s DoEs as a fresh catalyst. Further supply side news-flow may also be contributing to the downside as sources stated that Russian oil output in March (so far) stood at 11.30mln BPD, only marginally lower from February’s 11.34mln BPD. Finally, oil officials noted that crude loading operations have resumed in Iraq’s Southern Terminals following a stoppage. Elsewhere metals are largely benefiting from the marginal pullback in the buck with gold (-0.2%) gains also exacerbated by safe-haven demand. However, dollar-induced upside in copper is capped by the risk averse sentiment as the red metal trades sideways. Finally, the majority of miners and port operators in Australia have resumed after 4-6 days of disruption following cyclone activity.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior 1.6%
  • 8:30am: Trade Balance, est. $57.0b deficit, prior $59.8b deficit
  • 10am: Current Account Balance, est. $130.0b deficit, prior $124.8b deficit
  • 12pm: Revisions: Industrial Production and Capacity Utilization

DB’s Jim Reid concludes the overnight wrap

For those of you reading this today who manage people, imagine if your team kept on saying to you that you weren’t doing a very good job and were the worst boss ever (to my team please don’t get any ideas). Then imagine that they got together and first tried to get rid of you but then realised that they couldn’t. Instead, they organised a coup to relieve you of your powers for a day so they could prove they could do a better job.

Well that’s the position the U.K. government finds itself in today as we welcome in what will be another extraordinary day in U.K. politics. Backbenchers will take over proceedings for a day with indicative votes on the agenda with the aim being to try to break the impasse in the most important legislative process faced by the country in a couple of generations.

As things currently stand, Speaker Bercow will announce what options will be considered at 3pm today, the vote will take place at 7pm, and results will be announced around 8:30pm. The vote will reportedly be a single ballot containing every option with a yes/no decision to be made. So it’s quite possible that we end up getting a muddled outcome with no clear majority position. It’s also not yet clear if the government will whip votes or if MPs will be given free reign. The latter seems unlikely. Meanwhile, Sir Oliver Letwin, who had brought forward the motion for parliamentarians to take control of Brexit earlier in the week, has said that there is a little chance that the House of Commons will produce a majority for an alternative way forward today in just a single vote. He further added that, we will have to use this process today “and on Monday to try to work towards a consensus that can carry a majority”. So indicating that a further set of votes on narrowed down alternative options could happen early next week. Sterling is down (-0.18%) this morning.

Obviously, the outcome to today’s indicative votes will depend on what options are actually offered up to be voted on, but when the House of Commons held indicative votes on reforming the House of Lords in 2003, they voted against the status quo of an all-appointed upper house, but then went on to vote against all the alternatives that were presented! With parliament having already voted against May’s deal twice, voted in amendments against a no-deal Brexit and against a second referendum, it seems a big step to think a majority will be found unless horse trading around customs union / single market membership is done cross benches. Whatever happens, it’s worth noting that as things stand, with the Withdrawal Agreement still not approved by MPs and no further extension agreed right now, the legal default remains a no-deal Brexit on April 12.

In terms of yesterday’s developments, Jacob Rees-Mogg, who chairs the European Research Group of Conservative MPs favouring a hard Brexit, said on Twitter that “The choice seems to be Mrs May’s deal or no Brexit.” The implication being that if a no-deal outcome isn’t going to happen, he would reluctantly back the deal rather than risk losing Brexit altogether. Also Boris Johnson said that if “we” vote down May’s deal again there is “an appreciable risk” that Brexit won’t happen. He later said on the BBC that the next stage of negotiations need a new approach with some suggesting it was a hint that he’d consider backing the deal if Mrs May stepped aside.

These two potential key conversions might be too late in the day, especially as Sky News reported yesterday that the DUP would prefer a long extension over accepting Prime Minister May’s deal, and the party’s Brexit spokesman, Sammy Wilson, wrote in the Telegraph that this was a “toxic deal”. For reference, in the last meaningful vote on 12 March, the government lost by 149 votes, so they’d need 75 MPs to switch sides in order for the deal to win. However, the noise is that there may be one last try tomorrow or Friday. Importantly, Mrs May will speak at a private meeting of Conservative politicians early this evening where she will try to persuade them to vote for her deal while many of her party members are expecting her to use the meeting to announce a date when she will quit as prime minister in return for voting for her WA.

Back into a world that carries on outside of our domestic bubble, the S&P 500 rebounded yesterday, advancing +0.72%, with every sub-index rallying. The energy sector advanced +1.45% as Brent crude oil rose +1.31% to within 1% of its four-month high. Comments from Russia’s energy minister Alexander Novak heightened confidence that OPEC+ will maintain its output cap agreements to limit supply and support prices. The DOW and NYFANG indexes lagged a bit, gaining +0.55% and +0.37% respectively, largely due to underperformance by Apple (-1.03%). A US trade judge ruled against the tech giant and recommended bans on imports of certain iPhones (iPhone 7 and iPhone 7 Plus), saying that the products had violated a patent owned by chipmaker Qualcomm (+2.40%). After the US markets closed, the International Trade Commission came up with a second ruling where the full commission ruled against Qualcomm in a different case, which would have led to an import ban on a broad range of iPhones, including the iPhone 7, iPhone 7 Plus, iPhone 8, iPhone 8 Plus, and the discontinued iPhone X. Apple was up +0.62% in after-market trading while Qualcomm was down -0.78%.

European equities also recovered, with the STOXX 600 closing +0.77%, while the FTSE 100 (+0.58%), CAC 40 (+0.26%) and the DAX (+0.89%) all advanced. Government bond yields made a comeback too, with ten-year yields in the UK and Germany up +2.1bps and +1.1bps, respectively, although 10yr Bunds stayed below zero. Italy was an exception however, where yields on ten-year BTPs fell by -3.3bps, reflecting more positive risk appetite, while the flight from safe havens also saw gold lose ground, down -0.44%. US 2 and 10yr yields were both up 2.5bps, mirroring the slight global reversal of the sharp yield rally seen over the preceding few days. This morning, 2yr and 10yr US yields are down -2.7bps and -0.5bps, respectively, steepening the 2s10s curve to 17.9bps from 15.7bps yesterday. This is now near the top of the YTD range having got to the bottom of it last Friday. The move comes in the light of an interview from the Fed Governor nominee Stephen Moore to the New York Times overnight, where he walked back some of his prior critical rhetoric of the Fed but also said that he would want to immediately cut rates by 50bps. The market will take note of this and it could be construed as an attempt by Mr Trump to more politicise the Fed.

Overnight, markets in Asia are trading mixed with the Hang Seng (+0.64%) and Shanghai Comp (+0.55%) up while the Nikkei (-0.42%) and Kospi (-0.04%) are down. Elsewhere, futures on the S&P 500 are up +0.13% while the New Zealand dollar is down -1.56% this morning after the country’s central bank joined the growing global bandwagon of dovish central banks by saying that its next move is more likely to be a rate cut.

Mary Daly, President of the San Francisco Fed, gave a speech on inflation and reiterated the recent Fed position in favour of patience on the rates front. She noted that “data have been coming in a little bit slower than we thought” and that “we’ve seen financial conditions tighten up.” With inflation persistently below target and “inflation expectations edging lower,” Daly is in favor of maintaining an easy policy stance. She mentioned that she is “in the curiosity stage” when asked about changes to the Fed’s inflation targeting framework, a topic that will certainly remain in focus this year.

Back to yesterday and the risk rally came in spite of negative data from the US, where the Conference Board’s consumer confidence measure unexpectedly fell to 124.1 in March (vs. expected 132.5). Both the present situation (160.6) and the expectations measure (99.8) fell from February’s figure, with the present situation figure reaching an 11-month low. The labour diffusion subindex, which measures perceptions on the availability of jobs, fell by -5.7pts, its biggest drop ever outside of a recession, going back to 1967. Added to this, housing starts declined in February, coming in at 1162k (vs. 1210k expected) and building permits fell to 1296k (vs 1305k expected), although the FHFA House Price Index rose by 0.6% mom (vs 0.4% expected) in January. Finally, the Richmond Fed’s manufacturing survey in March fell back to 10, in line with expectations.

In terms of European data, yesterday we had Germany’s GfK Consumer confidence reading for April, which fell slightly to 10.4 (vs 10.8 expected), its second successive decline. In France, the final GDP reading for Q4 was confirmed at 0.3% qoq, in line with previous readings, although full-year GDP growth for 2018 was revised up to 1.6% (from 1.5% previously). However, the Insee’s survey of French manufacturing confidence in March fell to 102, its lowest level since November 2016.

Turning to the day ahead, in addition to the indicative votes on Brexit in the House of Commons, we’ve got French consumer confidence figures for March and February’s PPI release. From Italy, we also have consumer confidence figures, along with manufacturing confidence and economic sentiment, while from the US, we’ll get data on the trade balance for January. Otherwise, we’ve got a number of ECB speakers, including President Draghi, Vice President de Guindos and Chief Economist Praet, and from the US, Kansas City Fed President George will be speaking.

3. ASIAN AFFAIRS

i)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED UP 25.62 POINTS OR 0.85% //Hang Sang CLOSED UP 161.34 POINTS OR 0.56%  /The Nikkei closed DOWN 49.66 POINTS OR 0.23%/ Australia’s all ordinaires CLOSED UP 0.07%

/Chinese yuan (ONSHORE) closed DOWN  at 6.7241 AS TRUCE DECLARED FOR 3 MONTHS /Oil DOWN to 59.53 dollars per barrel for WTI and 67.72 for Brent. Stocks in Europe OPENED GREEN 

ONSHORE YUAN CLOSED DOWN // LAST AT 6.7241 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.73127 / TRADE TALKS NOW ON/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

3 a NORTH KOREA/

 

3 b JAPAN AFFAIRS

3 C CHINA

 

4.EUROPEAN AFFAIRS

UK/LAST NIGHT

This is not good:  only 7% of all Britons support Theresa May’s handling of Brexit.

(courtesy zerohedge)

Only 7% Of Britons Support May’s Handling Of Brexit

Now that Parliament has (at least temporarily) seized control of the Brexit process from Prime Minister Theresa May’s government (prompting the PM to offer Brexiteers her head on a silver platter in exchange for their support for the withdrawal agreement she negotiated with the EU), MPs, including 30 rebel tories and three junior ministers in May’s own cabinet, have finally signaled that they have had enough with the government’s dysfunctional management of the Brexit process.

And as it turns out, public opinion is overwhelmingly on their side. According to a poll of more than 2,600 British adults conducted by the National Centre for Social Research (NatCen), the only issue that remainers and leavers can agree on regarding the whole Brexit process is that May’s government has seriously botched the whole affair. Only 7% of responders said they believed the UK government had handled Brexit well, according to the Guardian.

May

In fact, NatCen noted when it published the results of its polling that researchers were surprised by how those who voted leave had become just as critical of the Brexit process and outcome as remainers.

Clown

A comparison with results from a similar poll carried out in 2017 showed a dramatic decline in confidence. Back then, 29% of respondents had a positive view on the government’s handling of the talks.

Brexit

What’s more, research also found that both leavers and remainers disapproved of May’s withdrawal deal by similar margins – 66% and 64% respectively, up from 20% and 56% in 2017.

Ikea

All of these factors have contributed to a shift in public opinion in favor of remain. But the number of people who would actually change their vote is much smaller than many suspect. To wit, NatCen determined that more than half of the people who didn’t vote in the 2016 referendum would support remaining if a second vote were held today. These numbers have shifted markedly since the immediate aftermath of the election.

Brexit

In any case, the data should be food for thought for Brexiteers like Jacob Rees-Mogg, Iain Duncan and Boris Johnson who are leaning toward siding with Theresa May and backing her deal (presumably in exchange for her promising to resign)

end

ECB

As you know Europe has negative rates.  Now the ECB is contemplating stopping the payment by banks with respect to excess reserves. Japan is doing this but it has had little effect on helping the banks return to profitability

a real mess..

(courtesy zerohedge)

European Bank Stocks Soar: ECB May Launch Deposit Rate Tiering

Europe’s conversion into Japan is accelerating.

After years of justified complaints by Deutsche Bank and other European banks that the ECB’s NIRP policy is crushing their profits, the ECB appears ready to take a page from the BOJ playbook and according to Reuters, the central bank is “studying options to lower the charge that banks pay on some of their excess cash as a possible way to offset the side-effects of its ultra-easy policy.”

While no policy proposal has been made on the matter yet, the purpose of the move – which the BOJ has had in place for years without much beneficial impact to bank bottom lines – would be to return some of more than 7 billion euros ($7.90 billion) a year the ECB collects in interest from banks, Reuters reported.

This so-called deposit rate “tiering” would mean banks are exempted in part from paying the ECB’s 0.40% annual charge on their excess reserves, boosting their profits as they struggle with an unexpected growth slowdown.

In other words, the ECB will soon be forced to admit that when it comes to the financial part of Europe’s economy, its policies have been an outright failure, something Deutsche Bank has said for years. Meanwhile, when it comes to the “boost” negative rates provide to the rest of the economy, not to mention the ECB’s QE and its bloated, multi-trillion balance sheet, one look at Europe’s raging recession should end all debate there.

While tiering would crush what’s left of the ECB’s credibility, another problem with a tiered rate is that it would signal that rates are going to stay low for a very long time, in potential conflict with the ECB’s forward guidance, which sees rates at record lows only until next year. That said, it’s not like the market cares much about the ECB’s guidance any more: markets have already priced out a deposit rate hike for almost another two years as it has now become all too obvious that Mario Draghi will never hike rates during his tenure which appropriately ends on Halloween. Neither will his successor.

As a reminder, the ECB’s Governing Council discussed the merits of a tiered deposit rate at its March 2016 meeting but ultimately decided against it. It appears it has now changed its mind, especially since excess cash sloshing around the euro zone and paying a punitive negative interest rate has ballooned as a result of the ECB’s 2.6 trillion euro bond-buying program.

One thing to note: various forms of tiered rates have been introduced in Japan, Denmark, Sweden and Switzerland; none of them have been successful in actually boosting bank profits. But that consideration did not matter to traders this morning, with the news of possible tiering paring losses in the Stoxx Europe 600 Index, and pushing it up as much as 0.4% in a volatile session, thanks to surging bank stocks as the Stoxx banking sector index jumped as much as 2.2%.

END

THIS MORNING/GERMANY

The entire world is turning “Japanese” as bond yields tumble as well as huge inversions especially the 3 month/10 yr bond yield.  Markets seem to ignoring this very important development.

(courtesy zerohedge)

German Bond Yields Tumble Below Japan’s, US Yield Curve Crash Continues

You know it’s bad when…

For the first time since October 2016, German 10Y bond yields have tumbled below Japanese 10Y bond yields…

 

Meanwhile, the US yield curve continues to crash (3m Bill to 18m Bill)…

 

As Saxo’s Steen Jakobsen notes, this indicator has been shown(in academic papers) to have highest tracking for future Fed path.

The whole world is turning Japanese… and American stock markets just refuse to see it.

 

end
Germany
Now we have German Semi Conductor companies join the USA in reporting lack of revenue growth.  Today Infineon slashes revenue growth outlook by a huge 50%/
(zerohedge)

German Semiconductor Giant Slashes Revenue Growth Outlook By 50%

The warning first appeared in the latest Beige Book of all places.

Readers will recall that three weeks ago, when parsing the Boston Fed section of the Fed report, we found two very troubling references to the current state of semiconductor industry. The first one, while not critical was more of an amusing anecdote why the US labor market has been persistently “strong” as most high frequency indicators have been rolling over. This is what the Beige Book said about the labor market in the context of the semi sector:

A semiconductor manufacturer facing big declines in demand from China put a hiring freeze in place, but they were reluctant to institute layoffs since it takes three to six months to train new workers.

It was the second Boston Fed reference to the semi sector that was far more critical: this is what the Boston Fed said regarding anecdotal reference to manufacturing and related services.

Two [firms] reported substantial drops in sales and two reported significant weakness. The two firms that reported serious issues were a semiconductor manufacturer and a furniture builder…. The semiconductor firm sells mostly to the auto industry and said that a 40 percent drop in new orders from China was the biggest fall in sales since the collapse of Lehman in 2008. Two other firms, both with heavy exposure to semiconductors, said that the market had slowed significantly since earlier in 2018 – Link.

Since then one semiconductor company after another has issued warnings about the state of the industry, even as the Philadelphia Semiconductor Index has, paradoxically, hit all time highs as traders bets on imminent sector recovery sparked by China’s latest kitchen-sinking of various stimulus measures.

But for at least one company, that “imminent” moment can not come soon enough, because moments ago, Infineon, Europe’s semiconductor giant, threw in the towel on the rosy future, and slashed its 2019 revenue guidance ” in view of continued global economic uncertainties and weaker end-market demand.”

The company now sees full year revenue at €8 billion plus or minus 2%, which implies growth of roughly 5% at mid-point vs 2018 revenue of €7.6 billion, which means Infineon just cut its prior guidance of 9% almost in half.

What is perhaps scarier is that for the current quarter, the company said segment results should come in as expected, which means all the weakness is back-end loaded, to coincide with what the rate market increasingly sees as a recession in the back half of 2019.

Discussing the weakness, the company said that the growth rate of the Automotive and Industrial Power Control divisions should come in above group average (unless, of course, the weakness in the auto sector persists), whereas the Power Management & Multimarket division is expected to grow slightly less.  For the Digital Security Solutions division revenue is still assumed to decline by a mid-single digit percent rate compared to previous year.

But the real reason for the guidance cut was simple:

“A number of endmarkets continue to be sluggish,” Infineon said in a statement Wednesday. “In particular, the trend of declining vehicle sales in China has accelerated in February, causing dealer inventories to increase sharply.”

For good measure, the company also cut its profit margin guidance, and now it expects margin to be 16% versus 17.5% before, explaining that “business indicators point to a slower demand recovery than expected thus far”, something which all those algos bidding up the SOX may want to look into.

The Infineon news sent its sending shares tumbling by as much as 8.6%, the biggest intraday drop since Nov. 12.

 

 

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

TURKEY

Erdogan realizes his countries economy is in a mess as he needs outside funding namely in dollars.  However the central bank bought out just about all liquidity which caused overnight swaps to hit 700%..totally unheard of… Turkey, in order to survive must need dollars and by causing overnight swaps to rise, the opposite occurs..funding disappears.  Credit default swaps skyrocketed to 478% last night.

(courtesy zerohedge)

Turkey On Verge Of Collapse As Overnight Swaps Hit 700%, CDS Soar

In Turkey’s ongoing attempt to crush currency manipulators, yesterday we reported that in addition to launching a probe against JPMorgan (for its recent cut to its TRY price target) and threatening “manipulators”, on Monday Turkish authorities took a page of the Chinese currency manipulation playbook, when they made it virtually impossible for foreign investors to short the lira even as they soaked up virtually all intermarket liquidity, potentially threatening to kill the economy.

As we reported yesterday, the overnight swap rate on Monday soared more than ten-fold over the prior two sessions to more than 300%, the highest spike on record going back to the nation’s 2001 financial crisis as offshore funds clamoring to close out long-lira positions failed to find counterparties and the cost of a lira short exploded. Think Volkswagen short squeeze but for a currency.

Well, this unprecedented move continued on Tuesday when Turkish Lira swaps exploded again, more than doubling overnight, and hitting an insane 700%, with some reporting prints as high as 750%

The sudden evaporation of liquidity was partly a result of restrictions imposed by the Banking Regulation and Supervision Agency, or BDDK, imposed during the market rout last summer, which capped the amount of lira that Turkish banks can lend offshore to 25 percent of equity.

There was just one problem: whereas on Monday this “shock therapy” meant to force out the shorts did in fact work, sending the Lira soaring, and the USDTRY tumbling, the continuation of this painful squeeze no longer has a positive impact on the currency, where as of this point most of the shorts had already been stopped out. As a result, the USDTRY actually rose for the day, and was up to 5.4272, after hitting 5.3051 on Monday.

Commenting on this unprecedented move in swaps, Bloomberg’s Mark Cudmore notes that he doesn’t recall “seeing this happen to any liquid and freely tradeable currency in the past 15 years.”

For any fund that has any Turkey exposure, VAR levels will now have shifted significantly. This means that such funds will be pressured to reduce risk elsewhere until any Turkey exposure is closed. Although, the situation in Turkey has not evolved suddenly and it’s unlikely that any but dedicated EM funds have much exposure.

It also means that Turkey is doing its best to burn bridges with all foreign investors, both bulls and bears, which for a country that for the past decade has been entirely reliant on outside capital inflows, could spell a death sentence.

Meanwhile, unable to express their negative views on the economy via the currency – for now – Turkey bears have found a different way of betting on a Turkish economy implosion, namely Credit Default Swap, which soared to 454bps on Tuesday, a 40bps spike, and the highest since last summer’s crisis.

Of course, Erdogan’s vendetta against the shorts, and the elimination of virtually all liquidity just to force an FX squeeze, means that the broader economic slowdown and raging inflation, which is the true reason behind Turkey’s simmering crisis, is about to get much worse. Meanwhile, with local banks burning through reserves to defend the currency on the front-end, and with shorts no longer present, it is only a matter of time before the currency collapses once more, only this time driven not by a flood of shorts but as longs capitulate ahead of what increasingly looks like another Turkish crisis.

end

ISRAEL/GAZA

Israel strikes the GAZA strip again last night despite reports of a cease fire

(courtesy zerohedge)

Gaza Strikes Continued Overnight Despite Reports Of Cease-Fire

Local reports say that Israel and Hamas militants continued to exchange blows throughout the night and early Wednesday morning despite reports of a ceasefire brokered by Egypt, and after Tuesday witnessed moments of relative calm.

The Israeli military said it continued strikes on Hamas targets throughout the early morning hours of Wednesday after a rocket launch from the strip targeted southern Israel, triggering rocket sirens and seek shelter warnings in the Israeli city of Ashkelon.

 

Image source: AMN News

Tuesday was the second day of cross-border violence after the latest round of fighting began when a long-range rocket launched from Gaza slammed into a residential house in central Israel, reportedly wounding seven, including multiple children.

Israeli Prime Minister Benjamin Netanyahu had cut short his US trip where he discussed White House recognition of Israeli sovereignty over the Golan Heights with President Trump — a move which most international countries that have spoken on the matter have condemned, including close regional American ally Saudi Arabia.

The politically embattled prime minister is now just under two weeks ahead the most high pressure reelection campaign of his career on April 9, and as he faces down indictments related to multiple corruption charges and a rising opposition.

 

Image source: AMN News

Amidst the Israeli onslaught on Gaza, Israel opened public bomb shelters throughout most major cities, and its ‘Iron Dome’ missile defense systems appeared active throughout Wednesday morning.

Throughout Monday the Iron Dome system had reportedly intercepted about a dozen rockets, but the tempo of the attacks slowed through Tuesday and into Wednesday.

But as of Wednesday, Reuters reports a “Tense calm” along the Gaza-Israeli border:

But while violence eased amid Egyptian mediation, Israeli forces and Palestinian militants were on hair-trigger footing, with rocket attacks from Gaza and Israeli air strikes in the enclave briefly resuming late on Tuesday after a day-long lull.

Despite dozens of rocket launchings and Israeli attacks, no deaths have been reported. Israel’s Iron Dome anti-missile interceptors have destroyed some of the rockets and Palestinian militants vacated facilities targeted in the air strikes.

Amazingly, not a single death has been recorded from this week’s major flare-up on either side.

 

Israeli residence destroyed by Hamas rocket fire Monday. 

Hamas leadership has been widely reported to be hiding once Israeli airstrikes began, and the IDF has claimed direct hits on a number of Hamas command post since military action ensued.

On Wednesday Egypt is expected to pursue further truce talks according to unnamed Palestinian officials speaking to Reuters.

end

6.GLOBAL ISSUES

Canada

Canada might stop Trump’s NAFTA deal if he does not stop steel and aluminum tariffs

(courtesy Mish Shedlock/Mishtalk)

Canada Might Nix Trump’s NAFTA Deal Unless He Stops Steel Tariffs

Authored by Mike Shedlock via MishTalk,

Trump’s trade deal scorecard might drop to zero unless Trump halts tariffs on Canadian steel and aluminum.

With much fanfare Trump bragged about the USMCA replacement for NAFTA. Canada still has not ratified that agreement, and perhaps won’t at all.

The Wall Street Journal reports Canada Links Trade-Deal Approval to Steel Tariffs.

Canada’s foreign minister indicated Monday the government might delay ratification of the revised North American free-trade deal until the Trump administration lifts its tariffs against Canadian steel and aluminum. “The existence of these tariffs for many Canadians raises some serious questions about ratification,” said Ms. Freeland, in Washington to meet with U.S. Trade Representative Robert Lighthizer and members of Congress.

Given the scandal-fueled political atmosphere and other pieces of legislation on the agenda, Canadian political watchers have said getting the trade deal ratified before summer would prove difficult—and politically unwise given the steel and aluminum tariffs and general animosity in Canada toward President Trump.

Pelosi May Sink the Deal on the US Side

It’s not just Canada that may nix this deal. Also consider New Nafta Is Threatened by Partisan Split Over Enforcement

Led by House Speaker Nancy Pelosi, Democrats want the administration to add provisions to last year’s pact with Canada and Mexico that will ensure Mexico enforces environmental protections and allows its workers to form unions freely.

“Right now, the president’s Nafta update can’t be enforced,” said Sen. Ron Wyden of Oregon, the top Democrat on the Senate committee that oversees trade. “No matter how good a deal looks on paper, it doesn’t mean much if you can’t make sure the other countries live up to their end of the bargain.”

The USMCA requires ratification in the House and Senate as well as legislatures in Canada and Mexico before it could replace the original Nafta that took effect in 1994.

If Mrs. Pelosi’s party remains unified, she could block consideration of USMCA, either by changing the rules of the House or triggering a mechanism inserted by Mr. Wyden into the fast-track trade law—which governs how trade pacts are passed—that would prevent the agreement from getting expedited consideration

Trump’s Trade Deal Scorecard

The self-alleged best deal maker in history does not have a single ratified deal in two years.

Instead, he has infuriated Canada, Germany, and the EU in general.

When Trump backed out of the Trans Pacific Partnership (TPP) he put US farmers at a serious disadvantage in selling agricultural goods to Japan.

By the way, even if USMCA is ratified by the US, Canada, and Mexico, for the US, the Changes are Trivial.

Viewed in that light, Trump’s scorecard is zero even if this passes.

How to Not Make Deals

  1. Infuriate allies
  2. Not understand trade is a two-way street

Trump views every deal as having a winner and a loser and he insists on winner every time.

In reality, both sides have to benefit or there would not be deals.

Results Speak

And let’s not forget the result of his tariff actions to deduce the trade deficit.

The most likely way Trump “succeeds” at reducing the trade deficit is via recession.

For discussion, please see Mission Impossible: Tariffs Didn’t Reduce the Trade Deficit (Deals Won’t Either).

end

SWEDEN 

Swedbank is one of the oldest banks in Sweden founded in 1820.  These guys are now next in line in the money laundering business and this scandal is huge and may implicate Manafort. Their offices were raided early this morning.

(courtesy zerohedge)

Swedbank Shares Plunge As Money Laundering Allegations Snowball, Manafort Implicated

In the competition to determine which European bank was responsible for the most egregious money-laundering violations, it’s beginning to look like boring old Swedbank, Sweden’s oldest lender, has muscled out Deutsche Bank (according to Maxine Waters, the reigning world money laundering champ) and Denmark’s Danske Bank to claim the title.

At this point, there aren’t many banks in the Nordic countries that haven’t been implicated in the massive money laundering scandal led by Danske’s (now-shuttered) Estonian branch. By the Danish bank’s own admission, more than $230 billion in potentially laundered funds flowed through the branch between 2007 and 2015, a sum that dwarfed the GDP of Estonia.

But thanks to a series of embarrassing investigative reports by Sweden’s STV, it appears that not only were Swedbank’s AML controls over the past decade-and-a-half virtually nonexistent,but the bank also worked with some of the same clients who have been tied to Danske bank, as well as clients of disgraced Panamanian law firm Mossack Fonseca,which was famously exposed back in 2016 for facilitating international money laundering and tax avoidance on a massive scale, on behalf of its clients, including criminals, businessmen and – crucially – politicians from all over the world.

Given the Nordic peoples’ reputation for honesty and openness, one might have expected Swedbank to cooperate with international authorities looking into suspicious transactions. But according to a Wednesday STV report, the bank misled American investigators about transactions tied to the Mossack Fonseca leaks.

According to the report, cited by Reuters and Bloomberg,  these included transactions involving Paul Manafort and former Ukrainian President Viktor Yanukovich were among the clients being investigated by the USBoth allegedly received suspicious payments via the Stockholm-based lender, with the cash originating – you guessed it – in Russia and the former Soviet Union.

In a separate scandal, the bank’s headquarters were raided by Sweden’s Economic Crime Authority on Wednesday as part of an investigation into whether the bank broke insider information rules by tipping off its biggest shareholdersto the first SVT report on money laundering, per the FT.

SVT reported Tuesday that Swedbank may have handled as much as $20 billion per year tied to the Danske money laundering case. Additionally, it worked with 100 Mossack Fonseca clients, moving billions of dollars on their behalf.

Unsurprisingly, Swedbank shares plunged in local trading on Wednesday, falling as much as 8% at their lows as the revelations stoked fears about the multiple international investigations into the bank’s conduct. Since the scandal broke earlier this year, the bank’s shares are down more than 20%.

Swedbank

As if the revelations themselves weren’t bad enough, the timing of Wednesday’s report couldn’t be worse for Swedbank shareholders. The bank’s annual shareholder meeting is Thursday. CEO Birgitte Bonnesen will likely need to answer some awkward questions. Not unlike former Danske CEO Thomas Borgen, who resigned last year as the scandal snowballed as shareholders accused him of turning a blind eye to the money laundering when he ran Danske’s international unit, Bonnesen before becoming CEO ran the bank’s audit department before becoming CEO, meaning it will be difficult for her to avoid culpability.

Analysts are already worried that Bonnesen is losing control of the bank, as calls for her to resign grow.

“Our concern is that Swedbank’s management is losing its grip on how to handle what are now snow-balling money-laundering accusations and allegations,” said Philip Richards, an analyst at Bloomberg Intelligence.

One thing is for sure: This is far from over.

end

This is a good one! Jeffrey Snider who is one smart cookie believes that it far worse out there than one believes.

a must read…

(courtesy zerohedge)

Same Planet, Very Different Worlds – What Lies Below The Fed’s Capitulation

Authored by Jeffrey Snider via Alhambra Investment Partners,

This is really getting out of hand. For the fourth day in a row, unofficially, effective federal funds or EFF remains above IOER. At the same, now the 10-year UST yields less. What was last week pretty concerning stuff before the Fed’s capitulation is this week whatever category lies below.

This is not a resumption of the bond bull market. Despite so many popular stories which had predicted it being called off throughout 2018, a bond bull market never existed. To begin with, there is nothing good about what’s going on in these places. More and more these distorted curves suggest pain ahead, the very reason behind what’s driving them to more ridiculous levels.

When the 5-year UST note is yielding 27 bps less than the shortest 4-week UST bill, 6 bps less than the official RRP money market “floor”, this is already quite a ways into troubling territory.

What will surely come next explains the eerie dichotomy that has set in between stocks and bonds. The stock market is almost fully complacent while at the same time bonds are striking serious unnerve. It is, I believe, what I wrote about a few months ago. You know what’s coming:

This is going to be a give and take; action and reaction like always. The more serious it becomes, the more serious the counterpunching. Powell’s already moved on skipping higher dots and going right to a “Fed pause.” It’s really easy if maybe he starts to sound more dovish still – hinting at rate cuts “if conditions warrant.”

The pause is now fully locked in after last week’s FOMC decision and forecastsRather than spark reflation as was probably hoped, curves collapsed since it was policymakers who surrendered. They now have to take the next step which is going to be the first hints of rate cuts. The progression is just that predictable.

The more the bond market suggests this is what will happen I think the happier stock investors will be; more punchbowl baby! Like September 2007, the NYSE is waiting for the (short term) magic to be rekindled, stock investors expecting now that it’s just a matter of time.

Ironically, it’s the very same expectation as what’s being traded in these bond curves only with vastlydifferent interpretations. The stock market holds out hope Powell can and does fix this, several rate cuts if that is what it takes. The bond market is saying, yeah, several rate cuts but why might they be necessary in the first place?

It’s not that maybe, possibly Powell’s FOMC might solve some unknown problem that could turn out badly, the emphasis is on the something that is already rotten.

This bond bull, though, is not a US story. It is a global one. Curves are collapsing all over the place. The Bank of Canada, for example, had been following the Fed’s path in predicting Reflation #3 would amount to globally synchronized growth. The central bank therefore carefully, methodically pushed its overnight benchmark policy rate to 1.75%.

As of today’s close, the 10-year Canadian federal government bond yields 1.55%. Not so happy times in Ottawa.

Over in Japan, the bull-est of all bond bulls, the bull is back in full swing. Going back to October 9, yields have been dropping, the complete disappearance of not just last year’s QQE party but of the entirety of Reflation #3. In today’s trading, the JGB 10s are only a small bit above record low (negative) yields.

The JGB curve, like global counterparts, are falling apart, too.

The same process is playing out in Germany, Australia, etc. Will any of these other places end up caring if Powell does what everyone now expects of him? In the global bond market, when he does start talking about cuts it will like last week’s circus confirm what is already being traded now outside of stocks.

This isn’t his problem to fix, at least not in the way it is supposed to go. I wrote last May about bonds and curves and how many were saying it was the bond market which had the bubble on its hands; yet, at the same time, you could see by nothing more than historical repetition how nothing was materially different:

That’s ultimately what the JGB market has been saying all along. It didn’t matter what the BoJ had done, nor did it matter for more than a few years that the economic outlook might have appeared brighter, in the end nothing actually changed. The economy remained mired in a massive depression, a slump without end. JGB’s were signaling that there is an economic case where recovery isn’t guaranteed no matter how much time might pass – a circumstance far beyond the business cycle.

Call that a bull market if you want, but no sane person would.

Now that it’s back in full swing, and central bankers forced to indulge in its projections everywhere, a few swats backward in federal funds is the answer? By echoing the long and unbreakable “bull market” in JGB’s, from UST’s to Canada bonds these markets are saying the same thing – there was no recovery and there isn’t going to be. It’s only a little strange for stocks to be encouraged by that, rationalizations being what they are.

When those rate cuts do begin, I think the most interesting thing about them won’t be anything to do with the economy. It will be what might happen to EFF, perhaps rounding out the picture of official relevance a little more for the few who take the time to notice these things. If IOER is reduced by 25 bps, which is what markets are now practically guaranteeing (as a start), what will it suggest if EFF falls by only 24 bps, 23 even, perhaps less?

It’s bull, alright.

7  OIL ISSUES

 

8. EMERGING MARKETS

Venezuela is the the USA sphere of influence.  However both China and Russia lent money to Venezuela and now Russian troops are on the ground in Venezuela as Putin wants his money back. Trump warns Putin to get out of Venezuela.

this should be interesting especially after the uSA and the West fooled around with the Ukraine (Crimea) which is a Russian sphere of influence.

(courtesy zerohedge)

 

Trump Warns Putin That “Russia Has To Get Out” Of Venezuela, “All Options Are On The Table”

Days after Vladimir Putin sent military planes and 100 troops to an airport near Caracas over the weekend, on Wednesday President Trump warned Russia against involvement in the Latin American nation, telling reporters in the Oval Office that “Russia has to get out” amid U.S. efforts to back opposition leader Juan Guaido.

Trump was meeting with Fabiana Rosales, the wife of Juan Guaido, who has been recognized as the legitimate leader of Venezuela by the US and various western nations, even as both Russia and China still endorse only the regime of Maduro.

 

President Trump meets with Fabiana Rosales, wife of Venezuelan opposition leader Juan Guaido

Asked if he’d communicated that message to Russia through one of his representatives, Trump said “they know very well.”

Moments before Trump spoke, VP Mike Pence called on Russian President Putin to cease talks with Maduro and said Russia’s military move was “an unwelcome provocation”, clearly failing to grasp the absurdity of what has become a soft US-backed presidential coup (and one which based on reported on the ground has lost most of its recent momentum).

To underscore that the US still hasn’t given up imposing control in the country with the world’s biggest oil reserves, Trump said “all options are on the table,” language he has repeatedly used when asked whether he’s considering U.S. military intervention against Maduro.

“Past administrations allowed this to happen,” Trump said. “I’ve inherited a mess between North Korea, and all of the problems we have all over the world, the entire Middle East and Venezuela. These are things that never — they never should have happened.

“But I’ll fix it,” he added. “We’re fixing it all over the world. That’s what we’re going to do.”

Tensions between the U.S. and Russia escalated over the weekend when a Russian Ilyushin IL-62 passenger jet and an Antonov AN-124 military cargo plane arrived at the international airport outside Caracas on Saturday. Sputnik, a Russian state news outlet, cited unnamed embassy officials in Caracas to report that the troops and 35 tons of cargo under the command of General Vasily Tonkoshkurov arrived to “exchange consultations.”

A Venezuelan Information Ministry official told Bloomberg that the visit was to perform maintenance on Russian military equipment the nation had purchased.

On Monday, Secretary of State Michael Pompeo called his Russian counterpart, Sergei Lavrov, warning that the U.S. and its allies “will not stand idly by as Russia exacerbates tensions in Venezuela.” In response, Lavrov told Pompeo that the U.S. is fomenting a “coup d’etat” against the Maduro government that violates the United Nations charter.

For those who note the uncanny similarities between the Venezuela scenario and both Syria and Cuba (and its missile crisis), you are 100% correct, although how the current geopolitical showdown between the two superpowers ends is still anyone’s guess.

 

end

 

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

Euro/USA 1.1270 DOWN .0003 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems + USA election:///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES  IN THE RED 

 

USA/JAPAN YEN 110.28  DOWN .287 (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 1.3208    DOWN   0.0002  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.3407 UP .0027 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 WEDNESDAY morning in Europe, the Euro FELL by 3 basis points, trading now ABOVE the important 1.08 level  FALLING to 1.1270 Last night Shanghai composite closed UP 25.62 POINTS OR 0.85%/

 

 

 

//Hang Sang CLOSED UP 161.34  POINTS OR 0.56% 

 

/AUSTRALIA CLOSED UP 0.07%// EUROPEAN BOURSES  DEEPLY IN THE RED/

 

 

 

 

 

 

 

The NIKKEI: this WEDNESDAY morning CLOSED DOWN 49.66 POINTS OR 0.23%  

 

 

 

 

 

 

 

 

 

Trading from Europe and Asia

1/EUROPE OPENED RED 

 

 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 161.34 POINTS OR 0.56%

 

 

 

/SHANGHAI CLOSED UP 25.62 POINTS OR 0.85% 

 

 

 

 

 

 

Australia BOURSE CLOSED UP 0.07%

 

Nikkei (Japan) CLOSED DOWN 49.66 POINTS OR .23% 

 

 

 

 

 

 

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1318.40

silver:$15.45

Early WEDNESDAY morning USA 10 year bond yield: 2.38% !!! DOWN 5 IN POINTS from TUESDAY’S night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.84 DOWN 3  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 96.74 UP 1 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

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And now your closing  WEDNESDAY NUMBERS \12: 00 PM

 

Portuguese 10 year bond yield: 1.25% down 5  in basis point(s) yield from TUESDAY/

JAPANESE BOND YIELD: -.07%  DOWN 0   BASIS POINTS from TUESDAY/JAPAN losing control of its yield curve/

 

 

SPANISH 10 YR BOND YIELD: 1.05% DOWN 5   IN basis point yield from TUESDAY

ITALIAN 10 YR BOND YIELD: 2.44 DOWN 3    POINTS in basis point yield from TUESDAY/

 

 

the Italian 10 yr bond yield is trading 139 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: RISES  TO –.08%   IN BASIS POINTS ON THE DAY//

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

 

END

IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.1255 DOWN    .0020 or  20 basis points

 

 

USA/Japan: 110.35 DOWN 0.218 OR YEN UP 22 basis points/

Great Britain/USA 1.3198 DOWN .11( POUND DOWN 11  BASIS POINTS)

Canadian dollar DOWN 49 basis points to 1.3430

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY closed AT 6.7271    0N SHORE  (DOWN)

 

THE USA/YUAN OFFSHORE:  6.7394  YUAN DOWN)

TURKISH LIRA:  5.4426

the 10 yr Japanese bond yield closed at -.07%

 

 

 

Your closing 10 yr USA bond yield DOWN 7 IN basis points from TUESDAY at 2.36 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2,83 DOWN 5  in basis points on the day /

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

Your closing USA dollar index, 96.90 UP 16 CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 32.61  0.44%

German Dax : DOWN 36.64 POINTS OR 0.32%

Paris Cac CLOSED DOWN 16.68 POINTS OR  0.31%

Spain IBEX CLOSED UP 25.40 POINTS OR  0.28%

Italian MIB: CLOSED DOWN 18.10 POINTS OR 0.09%

 

 

 

 

WTI Oil price; 59.10 1:00 pm;

Brent Oil: 67.45 12:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    64.95  THE CROSS HIGHER BY 0.54 ROUBLES/DOLLAR (ROUBLE LOWER BY 54 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.08 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 :  59.40

 

 

BRENT :  67.81

USA 10 YR BOND YIELD: … 2.37… VERY DEADLY//

 

 

 

 

 

 

 

 

USA 30 YR BOND YIELD: 2.81..VERY DEADLY

 

 

 

 

EURO/USA DOLLAR CROSS:  1.1245 ( DOWN 29   BASIS POINTS)

USA/JAPANESE YEN:110.52 down .049 (YEN UP 5 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 96.91 UP  18 cent(s)/

The British pound at 4 pm: Great Britain Pound/USA:1.3215  UP 7 POINTS FROM YESTERDAY

the Turkish lira close: 5.4426

the Russian rouble 64.85   DOWN .43 Roubles against the uSA dollar.( DOWN 43 BASIS POINTS)

 

Canadian dollar:  1.3410  DOWN 29 BASIS pts

USA/CHINESE YUAN (CNY) :  6.7271  (ONSHORE)/

 

USA/CHINESE YUAN(CNH): 6.7382  (OFFSHORE)

German 10 yr bond yield at 5 pm: ,-0.08%

 

The Dow closed DOWN 32.14 POINTS OR 0.13%

 

NASDAQ closed DOWN 48.14 POINTS OR 0.63%

 


VOLATILITY INDEX:  15.15 CLOSED UP .47 

 

LIBOR 3 MONTH DURATION: 2.597%//

 

 

 

FROM 2.608

 

 

 

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

Banks, Big Tech, & Bond Yields Tumble As Fed-Cred Collapses

Goldilocks?

Inconceivable!

After two ugly days, China stabilized last night

 

European markets were volatile today but UK’s FTSE continues to underperform as various Brexit deadlines loom…

Meanwhile, German bund yields dropped back below JGB 10Y yields for the first time since 2016…

 

US markets tumbled shortly after the ubiquitous opening ramp, but reversed the downswing at the EU close. Nasdaq was the laggard today… (Dow was ramped to unchanged but all markets faded into the close)

 

S&P battled with 2800 all day…

 

Banks and Big Tech were both lower on the day…

With FANG stocks ugly…

Semis closed at 10-day lows.

If the yield curve is right, banks have a lot further to fall…

 

Before we leave stock-land, let’s take a peak at Brazil which topped 100,000 for the first time ever and has plunged over 7% since…

 

Treasury yields continued to tumble (down 4-5bps across the curve today)…

 

10Y tumbled to its lowest close since Dec 2017…

And arguably there is a lot more bond shorts to squeeze before this run is over…

 

Pick your point on the yield curve and it’s inverting (or inverting further). Here is the 3m-18m T-Bill curve (shown – in Fed papers – to have highest tracking for future Fed path)…

 

The Dollar rallied for the second day in a row but failed twice to break the 97.00 level…

 

Cable trod water around 1.32 for the 3rd day in a row until May resignation and BoJo flip-flop headlines sparked a late rally…

EM FX plunged today – its been a wild ride recently…

 

Cryptos rallied on the day with Bitcoin Cash leading the way…

 

Weakness across all commodities today even as the dollar only managed modest gains…

 

Some ‘fiduciary’ decided that 0945ET was the exactly right time to dump just under a billion dollars of paper gold…

But Gold futures found support at their 200DMA

 

Silver broke below its 100DMA and found support at its 50DMA.

 

Permian natgas prices plummeted to record lows after a pipeline failure…

 

Finally, and burying the lead, after Moore’s sycophantic op-ed, the market is now pricing in over 40bps of Fed rate-cuts in 2019 – dramatically more dovish than The ECB…

As Fed credibility is well and truly buried – so what is keeping this chasm alive?

 

MARKET TRADING/ 

Stocks Are Tumbling As Overnight Ramp Fails Again

For the second day in a row, overnight gains and an opening panic-bid in the US has rapidly evaporated into the red

While Trannies remain green, all other majors are in the red…

The S&P is testing down its 2800 Maginot Line…

Treasury yields have been down all day, testing new lows…

And critically, while bonds (red), the dollar (green) and gold (orange) are up since Powell’s big pivot, stocks are down and have twice tried and failed to ramp above pre-Powell levels…

ii)Market data/

Trump will be pleased with this as the USA trade deficit shrank to 51.1 billion dollars form 60 billion dollars.  However they still have a long way to go

(courtesy zerohedge)

US Trade Deficit Shrinks By Most in 10 Years As China Gap Tumbles

Having plunged to a record high deficit in December, expectations were for a modest bounce in the US trade balance in January but in fact the deficit ‘tumbled’ from a revised $59.9 billion to $51.1 billion.

Expectations were for a reduction in the deficit to just $57.0 billion, so this is a considerable improvement.

Imports from China plunged, suggesting American companies had been rushing shipments the prior month to beat an expected tariff boost.

In fact, with the pre-tariffs surge seemingly over, the US trade deficit’s decline of $8.8 billion is the biggest shrinkage since Feb 2009.

The data also showed the deficit in goods narrowed to $73.3 billion, while the surplus in services edged up to $22.1 billion.

Additionally, the last three months have seen the deficit with China shrink by an aggregate $8.6 billion – the most in 10 years…

President Trump will be pleased.

end

I promised you that Stephen Moore was going to be a handful for the Fed officials.  He is calling for a 50 basis point cut in the Federal funds rate.  This is why bond yields have been plummeting across the globe today

(courtesy zerohedge)

“Scary Hours” In Bond Market Rocked By “Crazy, Panicky” Moves

While some are ignoring the looming economic crunch and instead blame mortgage convexity hedgers for the sharp move lower in yields in the past week which led to the first inversion in the recession signalling 3M-10Y curve since 2007, even as others do their best to talk down the risk of a recession following yield curve inversion, the slide in yields has continued overnight, with the 10Y yield tumbling as low as 2.35% overnight – the lowest since Dec. 2017 – and the curve inversion hitting a new cycle low of 11bps earlier this morning.

The reason for the latest flush in rates, according to Nomura’s Charlie McElligott, was due to comments in a NYT interview released last night from President Trump’s likely new Fed nominee Stephen Moore who said that the Fed should immediately cut rates 50bps, while ECB’s Draghi and Praet again reiterated dovish guidance on both 1) TLTRO (making it more attractive by “tiering”) and 2) potential for deeper NIRP. As a result, global rates are again “foaming at the mouth” with another leg of “panicky grab,” while risk-assets have been “spooked” by the instability seen in the Rates-trade, with Spooz off 16 handles at their lows from earlier best levels, while FX vol saw some “risk off” flow as well as the Swiss Franc trading at the strongest vs EUR since Jul 2017.

For those who missed it, Moore’s interview with the NYT was “full of fireworks”, with McElligott’s summary below:

  • Moore stated that the Fed should immediately cut rates 50bps
  • “I was really angry” about the Fed’s December hike, Moore told the paper…”I was furious, and Trump was furious too.  I just thought that the December rate increase was inexplicable.  Commodity prices were already falling dramatically.”
  • Moore believes that the Fed should use an index of commodity price changes to drive interest rate policy decisions, a move which would have seemingly meant Rate hikes in the middle of the 2008 recession, as well as at the beginning of the very nascent 2010 / 2011 expansion
  • Moore is sorry he called for Fed Chair Powell to step-down after the FOMC raised interest rates in December—now instead saying “…hopefully I could work with Powell to get him shifted over to a more pro-growth” policy, LOL
  • Moore too acknowledged that his hyperinflation predictions / criticisms of QE policy during the Obama years were incorrect

Whether or not following Moore’s “guidance”, or just due to rising economic pessimism, the Eurodollar market now sees over 2 full rate cuts by December 2020.

 “WE WERE…INVERTED”:

The move in Rates, which are now pricing-in multiple Fed cuts, has been so profound that the Nomura strategist suggests the Fed’s Kaplan was “rolled-out” to counter the market behavior via comments to the WSJ in an interview piece released at 5:32am EST this morning, stating that it is “too soon” for the Fed to consider cutting rates.

So far it has not helped, with the overnight action exacerbated by further “forced-in” moves by the abovementioned MBS convexity hedgers, as swap spreads continue to collapse.

“SCARY HOURS” IN 10Y SWAP SPREADS:

Meanwhile, as attention focuses on the curve flattening, recall that the time to panic – as Goldman reminded readers yesterday – is when the curve proceeds to re-steepen next, something it has been doing in the 5s30s interval. Commenting on the latest steepening in the 5s30s, earlier touching fresh highs last seen in Nov17, McElligott ascribes this to Fed’s Rosengren stating that he favors shortening the WAM (weighted avg maturity) of the Fed’s UST portfolio

This again speaks to the rationale provided behind our recent advocacy of a “Reverse Operation Twist” where the Fed would increase the share of US T-Bills via reinvestment proceeds, which too then later allows flexibility for the Fed to then take the policy step of lengthening the maturing of its B-S the next time a significant economic downturn occurs

This public debate on the composition of the B-S is picking-up steam as they follow comments on the topic Monday from both Fed’s Harker and Evans, indicating policy tweaks to the SOMA WAM are increasingly likely in my eyes

Summarizing the violent action, here is McElligott’s conclusion: “Rates raging” again with an extension of UST- / swap spread- / front-end- / front-end flattener- “stop-ins” again “going off” overnight, with likely “exacerbation” culprits again being “negative convexity” types from MBS- and systematic “short vol” strategies.”

end

iii)USA ECONOMIC/GENERAL STORIES

Look what happens if you have a cell tower next to your home.  I can vouch for cancer problems with this.  We had a hydro electric plant next to our house and many children developed cancer. They tried to tell us that it was the hydro electric plant but we knew otherwise.

(courtesy zerohedge)

SWAMP STORIES

The Mueller report will be released in weeks and not months.  The White House may receive an advanced copy of the full report in case they wish to place executive privilege of some of the stuff

(courtesy zerohedge)

Mueller Report Release In “Weeks, Not Months”; White House Redaction Rules Uncertain

The public release of the Mueller report will take “weeks, not months,” according to Reutersciting a Justice Department official.

Barr released a four-page summary of the report’s central findings on Sunday, however he said he would need more time to review the report to determine what the public could see. Barr told Senate Judiciary Chairman Lindsey Graham (R-SC) of his plans to release the report publicly during a phone call this week.

Meanwhile, there are conflicting reports over whether the White House will receive and advanced copy of the report – with Business Insiderreporting that Barr told Graham that “he would send the special counsel Robert Mueller’s final report on the Russia investigation to the White House before the public sees it, in case it wants to claim executive privilege over any parts.”

Reutersand NBC News, on the other hand, say there are no plans to let the White House see it in advance.

Meanwhile, a debate has been brewing over Barr and Deputy AG Rod Rosenstein’s decision to exonerate President Trump of obstruction in light of Barr’s past comments on the subject.

Barr on Sunday released his own summary of Mueller’s report, which found that there was no evidence that the Trump campaign conspired with Russia during the 2016 election. Mueller declined to come to a conclusion on whether Trump obstructed justice in the Russia probe and instead laid out all the evidence prosecutors had collected before handing in his findings to Barr and Deputy Attorney General Rod Rosenstein.

Barr and Rosenstein then concluded that there was not sufficient evidence to determine that Trump obstructed justice. Their conclusion alarmed legal experts, who said Barr’s past comments on the obstruction inquiry may have compromised his ability to make impartial decisions about that aspect of the investigation. –Business Insider

Barr sent a memo to the DOJ last year criticizing the obstruction probe as “legally insupportable,” and advised that the Justice Department should not sanction it.

Lasering in on Barr’s criticisms, House Democrats are now pushing for the full release of the Mueller report as soon as possible – suggesting that it contains answers to key questions about contacts between Trump associates and Russia which may have occurred yet did not rise to the level of criminality. In short, Democrats want evidence to support insinuations of collusion going into 2020.

The FBI launched a counterintelligence investigation in May 2017 — after Trump fired FBI director James Comey, citing “this Russia thing” as his motivation — into whether Trump was acting as a Russian agent. That inquiry was later folded into the broader Russia investigation. Barr’s summary did not provide any details about Mueller’s findings in the counterintelligence portion of Mueller’s probe, but Justice Department veterans say the special counsel’s full report likely answers many of the questions the public still has. –Business Insider

Last year Trump’s lead attorney, Rudy Giuliani, told Business Insider that the White House wants a chance to review the Mueller report before it reaches the public in order to address any inaccuracies.

end
the big question: did Mueller know that there was no Trump Russia collusion well before the midterms?
(courtesy Andrew McCarthy/FoxNews)

Did Mueller Know There Was No Trump-Russia Collusion Before The Midterms?

Authored by Andrew McCarthy via FoxNews.com,

Almost from the start, Democrats and their media echo chamber have moved the goal posts on collusionThe original allegation – the political narrative that the Clinton campaign, through Obama administration alchemy, honed into a counterintelligence investigation – was that that the Trump campaign was complicit in Russia’s “cyberespionage” attacks on the 2016 election.

But there was no evidence that candidate Trump and his surrogates had anything to do with the Kremlin’s hacking and propaganda schemes. And no supporting logic. The Russians are very good at espionage. They neither needed nor wanted American help, their operations predated Trump’s entry into the campaign, and some of those operations were anti-Trump.

Nevertheless, in short order, that endlessly elastic word, collusion, was being stretched to the breaking point – covering every conceivable type of association between Trump associates and Russia.

Some of these were unseemly, such as the Trump Tower meeting, an apparently unsuccessful effort to obtain campaign dirt on Hillary Clinton. More of them were routine, such as incoming national-security adviser Michael Flynn’s communications with Russian ambassador Sergey Kislyak during the post-election transition. But none of these collusion episodes were criminal. The only “collusion” prosecutors care about is conspiracy; a criminal agreement to violate a federal penal statute – such as the laws against hacking.

There was never any such evidence. There was just unverified, sensational, hearsay nonsense – the Steele dossier generated by the Clinton campaign.

Now that Special Counsel Robert Mueller has concluded that there was no criminal collusion, the question arises: When during their exhaustive 22-month investigation did prosecutors realize they had no case?

I put it at no later than the end of 2017. I suspect it was in the early autumn.

By the time Mueller was appointed on May 17, 2017, the FBI had been trying unsuccessfully for nearly a year to corroborate the dossier’s allegations. Top bureau officials have conceded to congressional investigators that they were never able to do so – notwithstanding that, by the time of Mueller’s appointment, the Justice Department and FBI had relied on the dossier three times, in what they labeled “VERIFIED” applications, to obtain warrants from the Foreign Intelligence Surveillance Court.

And make no mistake about what this means. In each and every application, after describing the hacking operations carried out by Russian operatives, the Justice Department asserted:

The FBI believes that the Russian Government’s efforts to influence the 2016 U.S. presidential election were being coordinated with Page and perhaps other individuals associated with [Donald Trump’s] campaign.

Yes, the Justice Department continued to make that allegation to the secret federal court for months after Trump was sworn in as president.

Notably, in June 2017, about a month after Mueller took over the investigation, while he was still getting his bearings, the Justice Department and the FBI went on to obtain a fourth FISA warrant. Yet again, they used the same unverified information. Yet again, they withheld from the court the fact that this information was generated by the Clinton campaign; that the Clinton campaign was peddling it to the media at the same time the FBI was providing it to the court; and that Christopher Steele, the informant on whom they were so heavily relying, had misled the bureau about his media contacts.

You know what’s most telling about this fourth FISA warrant? The fact that it was never renewed. The 90-day authorization lapsed in September 2017. When it did, Mueller did not seek to extend it with a new warrant.

Think about that for a moment. President Trump fired FBI Director Comey on May 9, 2017. Eight days later, on May 17, Mueller was named special counsel. This appointment effectively wrested control of the Trump-Russia counterintelligence investigation from acting FBI director Andrew McCabe, transferring it to the special counsel.

By August 2017, Mueller had removed the lead investigator, Agent Peter Strzok over the rabidly anti-Trump texts he’d exchanged with Lisa Page, a top FBI lawyer who served as McCabe’s counsel. Page herself had resigned in May. Meanwhile, the FBI reassigned its top counsel, James Baker (who later resigned); and the bureau’s inspection division referred McCabe to the Justice Department’s inspector general for leaking investigative information and then lying about it (and McCabe was later fired and referred to the Justice Department for possible prosecution).

This means that by autumn 2017 when it would have been time to go back to the court and reaffirm the dossier’s allegations of a Trump-Russia espionage conspiracy, the major FBI officials involved in placing those unverified allegations before the court had been sidelined. Clearly up to speed after four months of running the investigation, Mueller decided not to renew these allegations.

Once the fourth warrant lapsed in September, investigators made no new claims of a Trump-Russia conspiracy to the court. The collusion case was the Clinton campaign’s Steele dossier, and by autumn 2017, the investigators now in charge of the Trump-Russia investigation were unwilling to stand behind it.

In order to get the FISA warrants, the Justice Department and the FBI had had to allege that there was probable cause to believe former Trump adviser Carter Page was an agent of Russia. Under FISA law, that requires alleging that he was knowingly involved in clandestine activity on behalf of Russia, and that this clandestine activity involved probable violations of American criminal law – offenses such as espionage. Yet, despite the fact that this representation was made four times in sworn “verified” applications, Mueller never charged Page with a crime – not espionage, not false statements, nothing.

When Special Counsel Mueller closed his investigation last week, he almost certainly knew for about a year and a half that there was no collusion case. Indeed, the indictments that he did bring appeared to preclude the possibility that the Trump campaign conspired with the Kremlin.

Yet the investigation continued. The Justice Department and the special counsel made no announcement, no interim finding of no collusion, as Trump detractors continued to claim that a sitting American president might be a tool of the Putin regime. For month after month, the president was forced to govern under a cloud of suspicion.

Why?

*  *  *

We give Chuck Ross the last word, as his question is perhaps the most critical of all…“Excellent question. Surely it was before Nov 2018. And if Trump is cleared before then, do Dems take over the House?”

Chuck Ross@ChuckRossDC

Excellent question. Surely it was before Nov 2018. And if Trump is cleared before then, do Dems take over the House? https://twitter.com/AndrewCMcCarthy/status/1110697140572049410 

Andy McCarthy

@AndrewCMcCarthy

Andrew McCarthy: How long has Mueller known there was no Trump-Russia collusion? https://fxn.ws/2TVUG5H #FoxNews

end
This guy Swalwell is one big joke: he still maintains Trump is a Russian asset despite the Mueller findings
(courtesy zerohedge)

Swalwell Doubles Down: Maintains Trump Is A “Russian Agent” Despite Mueller Findings

Rep. Eric Swalwell – who sits on the House Intelligence Committee – has doubled down on his claim that President Trump is a Russian agent because nobody has been able to conclusively disprove all of the claims in the Steele Dossier.

Speaking with Fox News‘s Martha MacCallum Tuesday night, Swalwell compared the Jussie Smollett case to the Trump-Russia collusion case – suggesting that Trump and Smollett were similarly let off the hook for their crimes ‘despite everyone knowing they did it.’

“The charges were dismissed, yet we all believe we know what happened because of the evidence that exists in the case,” said Swalwell. “I saw evidence and the country has seen evidence of collusion. Bob Mueller has said that he can’t prove it beyond a reasonable doubt, which I accept, but it doesn’t mean there wasn’t collusion,” he added.

MacCallum took issue with the Smollett comparison – noting that Mueller’s conclusion of “no collusion” came after “two years of investigation [in the collusion case] and 2,800 subpoenas, 500 lawyers, 500 interviews, you’ve had 19 lawyers who’ve been working on this,” adding “Some of the top lawyers in the country have worked on this. So there’s a very big difference between the Smollett case which never saw the light of day, and what we’ve watched over the past couple of years.”

Next, MacCallum played a clip of Swalwell telling MSNBC host Chris Matthews that he thinks Trump is a “Russian agent,” insisting “I haven’t seen a single piece of evidence that he’s not.

In other words, Swalwell is sticking with the transparent logic trap of: ‘Everybody knows you beat your wife Mr. Jones. Do you have evidence that you do not?’

Asked to explain his comments and provide evidence, Swalwell told MacCallum: “I think he acts on Russia’s behalf and he puts Russia’s interests ahead, too often, of America’s interests,” adding “The evidence is that he seeks to reduce the role of NATO — that’s Russia’s position. He’s pulled out of Syria — that’s Russia’s position.”

MacCallum shot back – “He’s also ramped up our … offensive help to the Ukraine,” which Swalwell interrupted – claiming that taking an adversary’s position somehow makes one an “agent” of said adversary.

Swalwell isn’t the only one who can’t accept the Mueller report

Also on Tuesday, CNN analyst and retired lieutenant colonel Ralph Peters told host Anderson Cooper “I can’t let it go. I can’t let it go. The Steele dossier rings true to me.”

Peters speculated that President Donald Trump has acted as an agent of Russia, which is one of the core claims of the Democrat-funded dossier. Peters repeated the familiar argument that Trump will not publicly criticize Russian President Vladimir Putin to make his case.

“He won’t criticize Putin, and why doesn’t he want sanctions? Why has he been slow rolling sanctions? Why does he just dove tail with Putin’s view of the world?” said Peters.

“Anderson, I may be utterly wrong,” he continued. “I may be influenced by my background as an intelligence officer but again, I go back to what has been not addressed: The Steele dossier. Given Trump’s behavioral profile, he was a perfect target and if you want various explanations, the Steele dossier is a viable one.” –Daily Caller

In short, both Swalwell and Peters have discarded the Mueller’s extensive investigation and are instead choosing to believe what’s contained in a Russian-sourced dossier compiled by a former UK spy, who admits it’s not a “finished product,” and parts of which former FBI director James Comey called “unverified and salacious.”

TDS appears to be very real.

end

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

@LeeSmithDC: If it weren’t for President Obama, we might not have done the intelligence community assessment that we did that set off a whole sequence of events which are still unfolding today, notably, special counsel Mueller’s investigation.”—James Clapper on CNN, July 24, 2018

What Did Obama Know and When Did He Know It?

Time for transparency: Mueller effectively indicts the Obama Justice Department and FBI.

https://spectator.org/what-did-obama-know-and-when-did-he-know-it/

Trump ally Lindsey Graham says HE told John McCain to share ‘dirty dossier’ with the FBI but late senator’s aides used ‘piece of garbage’ to unfairly hurt the president

     ‘And I understand that, clearly people are in the McCain world that did some things inappropriate but it was not John McCain. John McCain did not give it to anybody in the press, he talked to me just as soon as he got it, and he turned it over to the FBI and that’s exactly what he should have done,’ Graham said…

https://www.dailymail.co.uk/news/article-6849237/Trump-ally-Lindsey-Graham-says-told-John-McCain-share-dirty-dossier-FBI.html

Graham was McCain’s best Senate buddy.  McCain has been under fire for his role in the dossier.

J Solomon: US embassy pressed Ukraine to drop probe of George Soros group during 2016 election

It turns out the group that Ukrainian law enforcement was probing was co-funded by the Obama administration and liberal mega-donor George Soros. And it was collaborating with the FBI agents investigating then-Trump campaign manager Paul Manafort’s business activities with pro-Russian figures in Ukraine… Internal memos from Soros’s umbrella charity organization, Open Society Foundations, describe a concerted strategy of creating friendships inside key government agencies such as State, DOJ and the FBI that can be leveraged inside the countries Soros was targeting for anti-corruption activism…

https://thehill.com/opinion/campaign/435906-us-embassy-pressed-ukraine-to-drop-probe-of-george-soros-group-during-2016

John Solomon: Trump-Russia collusion did affect an American election — the one in 2018

Polls showed the impact of the Russia coverage on voters. About half of American voters declared they believed Trump or his aides had colluded with Russia, even though they hadn’t…

https://thehill.com/opinion/campaign/435700-trump-russia-collusion-did-affect-an-american-election-the-one-in-2018

On Monday, John Solomon said two current intel agents came to his home and told him “You don’t know how big this is.  The US intel apparatus was used for political dirty tricks.”  ‘We’re telling you this because the tools we use to catch terrorists might be taken from us over this’.  Now we know why John got the best leaks & info.  Video at: https://twitter.com/jsolomonReports/status/1110352575675678722

@paulsperry_: I am hearing the reason the Rosenstein DOJ refused to release his full unredacted August 2017 scope memo & the FBI’s July 2016 Electronic Communication (EC) memo opening the CrossFire Hurricane investigation is because both the scope memo and the EC memo are based on the dossier

George Soros Donated $408,000 to Kim Foxx, Prosecutor Who Let Jussie Smollett Walk

https://www.breitbart.com/politics/2019/03/26/george-soros-donated-408k-to-kim-foxx-prosecutor-who-let-jussie-smollett-walk/

Did Top Prosecutor Break Law Cutting Deal with Jussie Smollett? – Chicago police union president hand-delivered a request to the U.S. Attorney for an investigation of Cook County State’s Attorney Kim Foxx… State law states that after a state’s attorney recuses herself on a case “the court shall appoint a special prosecutor.”… https://patch.com/illinois/chicago/did-top-prosecutor-break-law-cutting-deal-jussie-smollett

Fox 32’s @Dakarai_Turner: As part of settlement with Cook County SAO, Jussie Smolett performed combined 16 hours of community service at Rev. Jesse Jackson Sr’s @RPCoalition. Included critiquing students in broadcast center, working in bookstore, and talking to visitors.

@JackPosobiec: General Flynn has a $5 Million legal bill over a hoax called Russiagate

@Charles_S_Viar: I think it’s clear by now that we no longer have a justice system. It’s a fraud…

Creepy Porn Lawyer Avenatti Was Representing Accused Russia Dossier Creator Alexandra Chalupa           https://www.thegatewaypundit.com/2019/03/creepy-porn-lawyer-avenatti-was-representing-accused-russia-dossier-creator-alexandra-chalupa-guess-he-better-find-a-new-lawyer/

-END-

 

I WILL SEE YOU THURSDAY NIGHT
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