APRIL 8/GOLD UP $6.40 TO $1297.90//SILVER UP 14 CENTS TO $15.25//GOLD ADVANCES EARLY IN SESSION ABOVE $1300 BUT IS DIRVEN BACK//CHINA ADDS 11.2 TONNES TO ITS OFFICIAL RESERVES AND MOST LIKELY ARE SIGNALING SOMETHING//ITALY DEMANDS ITS GOLD BACK FROM THE EU/ECB AND THEY DO ARE HEADING FOR A GOLD BACKED LIRA//BIG NEWS ON THE EUROPEAN FRONT AS SALVINI HAS ORGANIZED A POPULIST ALLIANCE HEADING INTO THE EUROPEAN ELECTIONS//THE USA EVACUATES TRIPOLI AS AN INVASION UNDER GENERAL HAFTER (FROM BENGHAZI) IS ALREADY BEGUN//MORE SWAMP STORIES FOR YOU TONIGHT////

 

 

 

 

 

 

GOLD: $1297.90  UP $6.40 (COMEX TO COMEX CLOSING)

Silver:  $15.25 UP 14 CENTS (COMEX TO COMEX CLOSING)

Closing access prices:

Gold :  $1297.80

 

 

silver: $15.26

 

JPMorgan has been receiving gold with reckless abandon and sometimes supplying (stopping)

today RECEIVING:  16/87

EXCHANGE: COMEX
CONTRACT: APRIL 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,290.400000000 USD
INTENT DATE: 04/05/2019 DELIVERY DATE: 04/09/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
132 C SG AMERICAS 1
323 H HSBC 20
657 C MORGAN STANLEY 1
657 H MORGAN STANLEY 45
661 C JP MORGAN 16
737 C ADVANTAGE 32 22
800 C MAREX SPEC 4 2
880 H CITIGROUP 26
905 C ADM 5
____________________________________________________________________________________________

TOTAL: 87 87
MONTH TO DATE: 4,115

 

 

 

NUMBER OF NOTICES FILED TODAY FOR  APRIL CONTRACT: 87 NOTICE(S) FOR 8700 OZ (.2706 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  4115 NOTICES FOR 411500 OZ  (12.799 TONNES)

 

 

SILVER

 

FOR APRIL

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

60 NOTICE(S) FILED TODAY FOR 300,000  OZ/

 

total number of notices filed so far this month: 757 for 3,785,000  oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :$5005   UP $107

 

 

Bitcoin: FINAL EVENING TRADE: $5158 UP 10

 

 

end

 

XXXX

 

 

 

 

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A FAIR  SIZED 782 CONTRACTS FROM 204,897 UP TO 205,679 DESPITE FRIDAY’S 2 CENT FALL IN SILVER PRICING AT THE COMEX.  TODAY WE ARRIVED CLOSER TO AUGUST’S 2018  RECORD SETTING OPEN INTEREST OF 244,196 CONTRACTS. WE MUST HAVE HAD  CONSIDERABLE SHORT COVERING AGAIN TODAY. NO DOUBT THAT THE ENTIRE RISE AT THE COMEX WAS DUE TO THE SPREADERS.

 

WE HAVE ALSO WITNESSED A LARGE AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY AS WELL WE ARE WITNESSING CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S.  WE WERE  NOTIFIED  THAT WE HAD A SMALL SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:

0 EFP’S FOR MARCH,  0 FOR APRIL,  0 FOR MAY, 382 FOR MARCH 2020  0 AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE: OF 382 CONTRACTS. WITH THE TRANSFER OF 382 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 2716 EFP CONTRACTS TRANSLATES INTO 1.91 MILLION OZ  ACCOMPANYING:

1.THE 2 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.:

27.120 MILLION OZ STANDING IN MARCH.

AND NOW 3.860 MILLION OZ STANDING FOR SILVER IN APRIL.

 

 

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

7989 CONTRACTS (FOR 6 TRADING DAYS TOTAL 7989 CONTRACTS) OR 39.94 MILLION OZ: (AVERAGE PER DAY: 1332 CONTRACTS OR 6.657MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAR:  39.94 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 5.70% 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:          612.64    MILLION OZ.

JANUARY 2019 EFP TOTALS:                                                      217.455. MILLION OZ

FEB 2019 TOTALS:                                                                       147.4       MILLION OZ/

MARCH 2019 TOTAL EFP ISSUANCE:                                           207.835   MILLION OZ

 

 

RESULT: WE HAD A SMALL SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 782 DESPITE  THE  2 CENT LOSS IN SILVER PRICING AT THE COMEX /FRIDAY... THE CME NOTIFIED US THAT WE HAD   A SMALL SIZED EFP ISSUANCE OF 382 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 FAIR SIZED: 1164 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 382 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 782 OI COMEX CONTRACTSAND ALL OF THIS  DEMAND HAPPENED WITH A 2 CENT LOSS IN PRICE OF SILVER ????  AND A CLOSING PRICE OF $15.11 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. 0.997 BILLION OZ TO BE EXACT or 143% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 60 NOTICE(S) FOR  300,000 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/ MARCH: 27.120 MILLION OZ/ AND NOW APRIL AT 3.860 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 AND THIS TIME BY A SMALL SIZED 743 CONTRACTS, TO 435,913 DESPITE THE  GAIN IN THE COMEX GOLD PRICE/(A RISE IN PRICE OF $1.35//FRIDAY’S TRADING).  

 THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A SMALL SIZED 2815 CONTRACTS:

APRIL 0 CONTRACTS,JUNE: 2815 CONTRACTS DECEMBER: 0 CONTRACTS, JUNE 2020l  0 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 435,913. 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 NET GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 2072 CONTRACTS: 743 OI CONTRACTS DECREASED AT THE COMEX  AND 2815 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 2072 CONTRACTS OR 207200 OZ OR  10.36 TONNES. FRIDAY WE HAD A RISE IN THE PRICE OF GOLD TO THE TUNE OF ONLY $1.35….AND YET WITH THAT, WE HAD A GOOD GAIN IN TONNAGE OF 10.36TONNES!!!!!!. 

 

 

 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF APRIL : 32,891 CONTRACTS OR 3,289,100 OR 102.30 TONNES (6 TRADING DAYS AND THUS AVERAGING: 5482 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 6 TRADING DAYS IN  TONNES: 102.3 TONNES

TOTAL ANNUAL GOLD PRODUCTION, 2018, THROUGHOUT THE WORLD EX CHINA EX RUSSIA: 3555 TONNES

THUS EFP TRANSFERS REPRESENTS 102.3/3550 x 100% TONNES = 2.88% OF GLOBAL ANNUAL PRODUCTION SO FAR IN DECEMBER ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     1477.93 TONNES

JANUARY 2019 TOTAL EFP ISSUANCE;   531.20 TONNES

FEB 2019 TOTAL EFP ISSUANCE:             344.36 TONNES

MARCH 2019 TOTAL EFP ISSUANCE:       497.16 TONNES

 

 

WHAT IS ALARMING TO ME, ACCORDING TO OUR LONDON EXPERT ANDREW MAGUIRE IS THAT THESE EFP’S ARE BEING TRANSFERRED TO WHAT ARE CALLEDRIAL 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 FAIR SIZED  DECREASE IN OI AT THE COMEX OF 743 DESPITE THE GAIN IN PRICING ($1.35) THAT GOLD UNDERTOOK FRIDAY) //.WE ALSO HAD A  SMALL SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 2815 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 2815 EFP CONTRACTS ISSUED, WE  HAD A GOOD GAIN OF 2072 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

2815 CONTRACTS MOVE TO LONDON AND 723 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 10.36 TONNES). ..AND ALL OF THIS GOOD  DEMAND OCCURRED WITH  RISE IN PRICE OF $1.35 IN FRIDAY’S TRADING AT THE COMEX

 

 

 

we had:  87 notice(s) filed upon for 8700 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD UP $6.40  TODAY 

VERY VERY STRANGE!!

 

A BIG CHANGE IN GOLD INVENTORY AT THE GLD

ANOTHER WITHDRAWAL OF GOLD FROM THE GLD: 0.88 TONNES

THE CROOKS NEED THIS GOLD TO PUT OUT DEMAND FIRES HERE AND ABROAD.

WE ARE COMING TO THE BOTTOM OF THE BARREL WITH RESPECT TO PHYSICAL GOLD HELD AT THE GLD.

 

 

 

 

 

 

INVENTORY RESTS AT 761.67 TONNES

 

 

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

 

SLV/

WITH SILVER UP 14 CENTS  TODAY:

 

NO CHANGES IN SILVER INVENTORY AT THE SLV
IT SURE LOOKS LIKE THERE IS NO PHYSICAL SILVER AT THE SLV TO ROB.

 

 

/INVENTORY RESTS AT 309.167 MILLION OZ.

 

 

end

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

1. Today, we had the open interest in SILVER ROSE BY A FAIR SIZED 782 CONTRACTS from 204,897 UP TO 205,639 AND CLOSER TO THE NEW COMEX RECORD SET LAST IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  1 1/3 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.  AS YOU CAN SEE, WE HAVE RECORD HIGH OPEN INTERESTS IN SILVER  ACCOMPANIED BY A CONTINUAL LOWER PRICE WHEN THAT RECORD WAS SET….. I WROTE THE FOLLOWING ON THURSDAY AND FRIDAY:

“YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST IS STARTING TO RISE IN THIS NON ACTIVE MONTH OF APRIL BUT SO IS THE OPEN INTEREST OF  SPREADERS. THE OPEN INTEREST IN SILVER WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING ACTIVE DELIVERY MONTH (MAY), AND THAT IS WHEN THE CROOKS SELL THEIR SPREAD POSITIONS BUT NOT AT THE SAME TIME OF THE DAY.  THEY WILL USE THE SELL SIDE OF THE EQUATION TO CREATE THE CASCADE (ALONG WITH THEIR COLLUSIVE FRIENDS) AND THEN COVER ON THE BUY SIDE OF THE SPREAD SITUATION AT THE END OF THE DAY. THEY DO THIS TO AVOID POSITION LIMIT DETECTION. THE LIQUIDATION OF THE SPREADING FORMATION CONTINUES FOR EXACTLY ONE WEEK AND ENDS ON FIRST DAY NOTICE.”

 

 

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., 382 FOR MAY AND MARCH 2020: 0 CONTRACTS  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 382 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE  OI GAIN AT THE COMEX OF  782 CONTRACTS TO THE 382 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE  OBTAIN AN FAIR SIZED GAIN OF 1164  OPEN INTEREST CONTRACTS.  THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 5.82 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,  27.120 MILLION OZ FOR MARCH. AND NOW 3.860 MILLION OZ FOR APRIL.

 

 

RESULT: A FAIR SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE TINY 2 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// FRIDAY. WE ALSO HAD A SMALL SIZED 382 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

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

 

 

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED //Hang Sang CLOSED BOTH CHINESE HOLIDAY  /The Nikkei closed UP 82.55 POINTS OR 0.38%/ Australia’s all ordinaires CLOSED DOWN .79%

/Chinese yuan (ONSHORE) closed UP  at 6.7079 AS TRUCE DECLARED FOR 3 MONTHS /Oil UP to 62.69 dollars per barrel for WTI and 69.52 for Brent. Stocks in Europe OPENED GREEN

ONSHORE YUAN CLOSED UP // LAST AT 6.7079 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.7136 / TRADE TALKS NOW ON/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /CHINA RETALIATES WITH TARIFFS/ TRUMP RESPONDS TO NEW TARIFFS AND IT NOW A FULL TRADE WAR COMMENCED

 

 

 

 

 

 

 

 

 

 

 

 

3A//NORTH KOREA

 

 

 

 

b) REPORT ON JAPAN

 

 

 

3 China/Chinese affairs

China/Boeing

More trouble for Boeing as China suspends its 6 billion dollar order for 100 of the Boeing 737 Max 8 planes

( zerohedge)

 

4/EUROPEAN AFFAIRS

i)BREXIT/EU/

Tom Luongo on how the EU is tearing apart the UK over Brexit

end

( Tom Luongo)

ii)An excellent commentary on the BREXIT situation by Michael Anthony.  He lays out for us how May fell for the Irish backstop and how that is hindering their exit and the will of the people.

He outlines the two outcomes that are now inevitable.a must read…

( Michael Antony/Off Guardian.org

iii)Rob Slane offers his opinion as to how Brexit will evolve. With Parliament revolting, he believes that there is going to be Brexit and it will be May’s Brexit and it will enslave the UK for years.

( Rob Slane/BlogMire.com)

iv)GERMANY

there is no question that Germany is the entire strength of the EU because of its huge exporting capabilities. As we have been telling you over the past few months:

(zerohedge)

 

v) EU/Europe

We knew that this would be inevitable:  Europe’s right wing populist parties are uniting behind Salvini in the next EU elections in May

( zerohedge)

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)Iran//USA

Not sure what this means as Iran, itself is a terrorist nation.  Trump has designated Iran’s revolutionary guard a foreign terrorist group. What this means for addition sanctions…is your guess.

( zerohedge)

ii)Libya/USA

Oil prices rise as USA forces evacuate Tripoli as fighting in the Libyan capital is heating up

( zerohedge)

iii)As General Hafter’s forces seem ready to advance onto Tripoli from its base in Benghazi, Mike Pompeo is fearing a bloodbath and a good reason for oil to rise today.
( zerohedge)

6. GLOBAL ISSUES

the hunt for yield: as these new Canadian bonds are backed by nothing but junk

(courtesy zerohedge)

 

7. OIL ISSUES

 

Tom Luongo now believes the Saudis will pivot towards China and the yuan and abandon the uSA dollar. This will be the ultimate blow to the dollar hegemony

( Tom Luongo)

 

 

8 EMERGING MARKET ISSUES

 

i)VENEZUELA

This does not look good; Pompeo warns NATO that they must confront the “emerging threats” coming from Russia and Chin in Venezuela.

( zerohedge)

ii)Pictures of the state of affairs inside Venezuela today

( zero hedge)

 

 

 

9. PHYSICAL MARKETS

i)Trump wants lower interest rates as well as the Fed to stop shrinking its balance sheet.

(bloomberg/gata)

 

ii)This is outlined below: China increases the pace of announced additions to its gold reserves.  They are probably sending a message to the rest of the world.

(Bloomberg/GATA)

 

iii)The New York Sun states that there is panic over Trump’s two picks, Moore and Cain. There is no panic withus

( New York Sun/GATA)

iv)Bloomberg states its opinion that the Fed will bow to Trump’s bid for lower interest rates. Trump wants lower rates because he sees:  “no inflation”

 

( Miller/GATA)

 

v)Gold and silver coins are money and thus should never be taxed. Kudos to West Virginia to exempt bullion coins from sales tax.

( Numismatic News/GATA)

 

vi) For the 4th month in a row, China has added gold its official reserves.  It added 11.2 tonnes of gold to its reserves which now sand at 60.62 million oz. or 1885.50 tonnes of gold.  This gold has already been bought previously and produced by China.  China produces are 410 tonnes of gold per year or 34 tonnes per month. This is the bare minimum that its reserves must rise since it does not ship any gold outside the country. We are in the camp that suggests that China has between 20,000 to 25,000 tonnes of gold stored away.
( Pakiam/Bloomberg)

 

 

vi  b)China, announced that it added 11.2 tonnes of gold to its official reserves even though it produces around 34 tonnes per month. However after a long hiatus of not reporting, this is the 4th straight month of “official” additions.  The last time that they started to increase their official reserves, they engaged in a wicked devaluation.

Are they signaling another such event

( zerohedge).

 

vii)This ought to be fun:  Italy’s gold does not belong to its people unlike the uSA where its gold is down by its citizens.  Now the two major coalition partners want to change the rules:

1. it wants the Bank of Italy to buy back shares of of the Bank of Italy held by private banks
2. it wants all of its gold to be declared an asset of the people
good luck to them when they find that most of their gold has been leased out…
( zerohedge)

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

 

 

MARKET TRADING//early this morning/FOMC

 

 

 

ii)Market data

Hard data, factory orders slumped badly in February.  We continue to witness hard data reports showing a declining uSA and for that matter, a global economic decline

( zerohedge)

 

ii)USA ECONOMIC/GENERAL STORIES

a)Rosenberg is going full bear as he states that the Fed will embrace helicopter money in the next few years.

I think it will be this year..

( Rosenberg/zerohedge)

b)Uninsured farmers in the Mid -West are facing an existential crisis as the floods destroyed hundred’s of million dollars in crops that were stored in bins. The water came in so fast that the farmers had no time to protect their stored crops….. It is the worst economic disaster for USA framers in USA history

(courtesy Michael Snyder

 

iv)SWAMP STORIES

a)How the Russian hoax came to be;

a must read..

Devin Nunes via Washington Examiner)

b)The witch hunt on Trump continues as the Democrats are now demanding his tax returns.

( zerohedge)

c)Mulvaney:  the Democrats will never see Trump’s tax returns

( zerohedge)
d)Trump at war with California with respect to the national emergency at the border
( zero hedge)

e)John Solomon on Sunday pointed out that the Ukrainians were meddling in the 2016 election.  And they were interfering for Hillary Clinton.

( Sara Carter)
f)Doug Collins, the ranking Republican on the House Judiciary committee shreds Nadler to pieces for bullying Mueller. He orders that it should be Mueller who is to testify immediately(courtesy zerohedge)
E)SWAMP STORIES/MAJOR STORIES//THE KING REPORT

 

end

 

 

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST REVERSED COURSE AGAIN BY FALLING 743 CONTRACTS.  TO A LEVEL OF 435,913 DESPITE THE  GAIN IN THE PRICE OF GOLD ($1.35) IN FRIDAY’S // COMEX TRADING) 

WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF APRIL..  THE CME REPORTS THAT THE BANKERS ISSUED A SMALL SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 2815 EFP CONTRACTS WERE ISSUED:

FOR APRIL 0 FOR JUNE ’19: 2815 CONTRACTS , DEC; 0 CONTRACTS: 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  2815 CONTRACTS.

THE OBLIGATION STILL RESTS WITH THE BANKERS ON THESE TRANSFERS. ALSO REMEMBER THAT THERE IS NO DOUBT A HUGE DELAY IN THE ISSUANCE OF EFP’S AND IT PROBABLY TAKES AT LEAST  48 HRS AFTER LONGS GIVE UP THEIR COMEX CONTRACTS FOR THEM TO RECEIVE THEIR EFP’S AS THEY ARE NEGOTIATING THIS CONTRACT WITH THE BANKS FOR A FIAT BONUS PLUS THEIR TRANSFER TO A LONDON BASED FORWARD.

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES: 2072 TOTAL CONTRACTS IN THAT 2815 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A FAIR SIZED 782 COMEX CONTRACTS.

 

NET GAIN ON THE TWO EXCHANGES ::2072 contracts OR 207,200 OZ OR 10.36 TONNES.

 

We are now in the active contract month of APRIL and here the open interest stands at 443 contracts, having lost 33 contracts.

We had 105 notices filed upon yesterday, so we GAINED 72 contracts or an additional 7200 oz will  stand as these guys refused to morph into London based forwards as well as NEGATING a fiat bonus.  THE GOLD COMEX ,AND FOR THAT MATTER THE GLOBE, IS VOID OF GOLD AS THE CROOKS DESPERATELY SEARCH FOR BADLY NEEDED GOLD. TO PUT OUT FIRES OCCURRING ELSEWHERE!!

 

The next non active delivery month after  APRIL is the NON active delivery month is MAY and here the OI FELL 7 contracts DOWN to 2035 contracts. The next contract month after May is June and it is an active month.  Here the open interest FELL by 1830 contracts DOWN to 322,659 contracts.

 

 

 

 

TODAY’S NOTICES FILED:

WE HAD 87 NOTICES FILED TODAY AT THE COMEX FOR 8700 OZ. (

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total COMEX silver OI ROSE BY A FAIR SIZED 782 CONTRACTS FROM 204,897 UP TO 205,679(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 STRONG OI COMEX GAIN  OCCURRED DESPITE A  2 CENT FALL IN PRICING.//YESTERDAY. HOWEVER MOST OF THE COMEX GAIN WAS DUE TO THE SPREADERS.

 

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF APRIL AND THE  OPEN INTEREST IN THIS FRONT MONTH RESTS AT 75 CONTRACTS FOR A LOSS OF 0 CONTRACTS ON THE DAY.

WE HAD 0 NOTICES SERVED UP YESTERDAY, SO WE GAINED  0 CONTRACTS OR AN ADDITIONAL NIL OZ OF SILVER WILL STAND AT THE COMEX AS INVESTORS REFUSED TO MORPH INTO LONDON BASED FORWARDS AS WELL AS NEGATING A FIAT BONUS.

 

 

 

 

 

AFTER APRIL, WE HAVE THE ACTIVE DELIVERY MONTH OF MAY AND HERE THE OI FELL BY 3344 CONTRACTS DOWN TO 125,387. CONTRACTS.. THE NEXT MONTH OF JUNE ADDED 1 CONTRACTS TO TOTAL 33. AFTER JUNE, THE VERY BIG DELIVERY MONTH OF JULY HAD A GAIN OF 3677 CONTRACTS UP TO 49,976 CONTRACTS.

 

 

 

 

 

 

ON A NET BASIS WE GAINED A GOOD SIZED 1164 SILVER OPEN INTEREST CONTRACTS AS WE OBTAINED A 782 CONTRACT GAIN AT THE COMEX COMBINING WITH THE ADDITION OF 382 OI CONTRACTS NAVIGATING OVER TO LONDON.

NET GAIN ON THE TWO EXCHANGES:  1164 CONTRACTS...AND ALL OF THIS GOOD  DEMAND OCCURRED WITH A 2 CENT LOSS IN PRICING// FRIDAY 

 

 

 

 

 

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 60 notice(s) filed for 300,000 OZ for the MARCH, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY:  192,323  CONTRACTS

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  442,811  contracts (volume high due to raid)

 

 

 

 

 

 

 

 

INITIAL standings for  APRIL/GOLD

APRIL 8 /2019.

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
64,973.289
oz
Brinks
Delaware
JPMorgan
Scotia
Deposits to the Dealer Inventory in oz nil

oz

 

 

 

 

 

 

 

Deposits to the Customer Inventory, in oz  

 

 

 

nil oz

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No of oz served (contracts) today
87 notice(s)
 8700 OZ
(.2706 TONNES)
No of oz to be served (notices)
356 contracts
(35600 oz)
1.107 TONNES
Total monthly oz gold served (contracts) so far this month
4115 notices
411500 OZ
12.799 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 no dealer entries:

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

We had 1 kilobar entries

 

we had 0 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into everybody else:  zero oz

 

 

total gold deposits: nil  oz

 

 very little gold arrives from outside/ zero  entries  today

we had 4 gold withdrawals from the customer account:

(maybe investors are taking our advice by not storing their gold at the comex.)

this will hurt our bankers as they need to replace leased gold as all gold stored at the gold comex is unallocated.

 

 

 

total gold withdrawals;  64,973.289  oz

 

we had 2 adjustments…
and this time, this is what i am looking for: and indicative of a settlement:
out of JPMorgan
16,991.05 oz was adjusted out of the dealer JPM and this landed into the customer account of JPM

FOR THE APRIL 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  87 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 16 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 APRIL /2019. contract month, we take the total number of notices filed so far for the month (4115) x 100 oz , to which we add the difference between the open interest for the front month of APRIL. (443 contract) minus the number of notices served upon today (87 x 100 oz per contract) equals 447,100 OZ OR 13.906 TONNES) the number of ounces standing in this active month of APRIL

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

No of notices served (4115 x 100 oz)  + (476)OI for the front month minus the number of notices served upon today (87 x 100 oz )which equals 447,100oz standing OR 13.906 TONNES in this  active delivery month of APRIL.

 

 

WE GAINED 72 CONTRACTS OR 7200 OZ WILL STAND AT THE COMEX AND THESE GUYS REFUSED TO MORPHED INTO LONDON BASED FORWARDS.(AS WELL AS NEGATING A FIAT BONUS FOR THEIR EFFORTS)

 

 

SURPRISINGLY LITTLE GOLD HAS BEEN ENTERING THE COMEX VAULTS AND WE HAVE WITNESSED THIS FOR THE PAST YEAR!!  WE HAVE ONLY 13.6402 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 13.906 TONNES OF GOLD STANDING

THEY SEEM TO BE USING CONSIDERABLE GOLD VAPOUR TO SETTLE UPON UNSUSPECTING LONGS.

 

 

 

 

 

total registered or dealer gold:  438,533.974 oz or  13.6402 tonnes
total registered and eligible (customer) gold;   7,973,532.440 oz 248.01 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.  IT LOOKS LIKE WE ARE GOING TO HAVE A REPEAT OF LAST YEAR WHERE MANY MORPH TO LONDON BECAUSE THERE IS NO METAL AT THE COMEX. SO WE ARE DOING MUCH BETTER IN 2019 AS WE NOW HAVE  TO 13.906 TONNES OF GOLD STANDING.

 

 

IN THE LAST 31 MONTHS 107 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 OF APRIL

INITIAL  standings/SILVER

APRIL 8 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
1,735,613.947 oz

cnt

BRINKS

Delaware

 

 

 

Deposits to the Dealer Inventory
nil oz
Deposits to the Customer Inventory
786,293.343 oz
JPMorgan
Brinks
No of oz served today (contracts)
60
CONTRACT(S)
300,000 OZ)
No of oz to be served (notices)
15 contracts
75,000 oz)
Total monthly oz silver served (contracts) 757 contracts

3,785,000 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

**a special thank you to JB who provided the data for me in the last few days as i just did not have access to it from my computer.

he saved the day!

we had 0 inventory movement at the dealer side of things

 

 

total dealer deposits: nil  oz

total dealer withdrawals: nil oz

we had  12 deposits into the customer account

 

i) Into JPMorgan:  486,787.810  oz

 

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

JPMorgan now has 148.909 million oz of  total silver inventory or 48.90% of all official comex silver. (148 million/305 million)

 

i) Into Brinks:  299,505.593 0z

 

 

 

 

 

 

 

total customer deposits today:  786,293.393 oz

 

we had 3 withdrawals out of the customer account:

i) Out of Brinks; 1,092,421.590 oz

ii) Out of CNT:  629,300.328 oz

iii0 Out of Delaware: 15,892.069 oz

 

total withdrawals: 1,735,613.947   oz

 

we had 1 adjustments..

i) OUt of CNT: 298,872.820 oz was adjusted out of the customer and this landed into the dealer CNT

 

 

 

total dealer silver:  89.878 million

total dealer + customer silver:  305.501 million oz

 

The total number of notices filed today for the APRIL 2019. contract month is represented by 60 contract(s) FOR  300,000  oz

To calculate the number of silver ounces that will stand for delivery in APRIL, we take the total number of notices filed for the month so far at 757 x 5,000 oz = 3,785,000 oz to which we add the difference between the open interest for the front month of APRIL. (75) and the number of notices served upon today (60 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the APRIL/2019 contract month:757(notices served so far)x 5000 oz + OI for front month of APRIL( 75) -number of notices served upon today (60)x 5000 oz equals 3,860,000 oz of silver standing for the APRIL 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 at the comex as these guys refused to morph into London based forwards as well as negating a fiat bonus.

 

 

 

 

FOR COMPARISON VS LAST YEAR:

 

 

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

AT CONCLUSION OF APRIL 2018: 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:  77,259 CONTRACTS

 

 

 

CONFIRMED VOLUME FOR YESTERDAY: 88,299 CONTRACTS… 

 

 

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 88,299 CONTRACTS EQUATES to 472 million OZ  67.40% 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

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

 

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV RISES TO -2.56% (APRIL 8/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.56% to NAV (APRIL 8/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -2.56%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 13.05/TRADING 12.75/DISCOUNT 3.48

END

And now the Gold inventory at the GLD/

APRIL 8/WITH GOLD UP AGAIN BY $6.40: THE CROOKS RAIDED THE COOKIE JAR AGAIN BY .88 TONNES//INVENTORY RESTS TONIGHT AT 761.67 TONNES.

APRIL 5/WITH GOLD UP$1.35: ANOTHER WITHDRAWAL OF 1.74 TONNES OF PHYSICAL GOLD FROM THE GLD INVENTORY: INVENTORY RESTS AT 762.55 TONNES

APRIL 4/WITH GOLD DOWN 90 CENTS TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 764.29 TONNES

APRIL 3:WITH GOLD DOWN 20 CENTS: ANOTHER WHOPPER OF A WITHDRAWAL: 3.81 TONNES FROM THE GLD//INVENTORY RESTS AT  764.29 TONNES

APRIL 2//WOW! WE LOST A WHOPPING 16.16 TONNES OF GOLD WITH A RISE IN PRICE OF $1.80//INVENTORY RESTS AT 768.10

APRIL 1/WITH GOLD DOWN $3.80: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 784.26 TONNES

MARCH 29/WITH GOLD UP $2.70 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 784.26 TONNES

MARCH 28/WITH GOLD DOWN $20.60: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 784.26 TONNES

 

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

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

APRIL 8/2019/ Inventory rests tonight at 761.67 tonnes

*IN LAST 572 TRADING DAYS: 173.28 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 472 TRADING DAYS: A NET 6.46TONNES HAVE NOW BEEN LOST INTO THE GLD INVENTORY.

WE MUST BE GETTING CLOSER TO THE BOTTOM OF THE BARREL FOR PHYSICAL GOLD AT THE GLD.

 

end

 

Now the SLV Inventory/

APRIL 8/WITH SILVER UP 14 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV.INVENTORY RESTS AT 309.167 MILLION OZ///

APRIL 5/WITH SILVER DOWN 2 CENTS: NO CHANGES IN SILVER INVENTORY:  THE CROOKS CANNOT RAID ANY SILVER BECAUSE THERE IS NONE: INVENTORY RETS AT 309.167 MILLION OZ//

APRIL 4/WITH SILVER FLAT TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.167 MILLION OZ/

APRIL 3/WITH SILVER UP TWO CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.167 MILLION OZ/

APRIL 2/ WITH SILVER DOWN ONE CENT TODAY: A SMALL WITHDRAWAL OF 134,000 OZ FROM THE SLV TO PAY FOR FEES/INVENTORY RESTS AT 309.167

APRIL 1/WITH SILVER DOWN ONE CENT TODAY: A SMALL WITHDRAWAL OF 656,000 OZ FROM THE SLV/INVENTORY RESTS AT 309.301 MILLION OZ//

MARCH 29/WITH SILVER UP 12 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.957 MILLION OZ/

MARCH 28/WITH SILVER DOWN 31 CENTS TODAY: A BIG CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 469,000 OZ INTO THE SLV INVENTORY//INVENTORY RESTS AT 309.957 MILLION OZ/

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

 

 

APRIL 8/2019:

 

Inventory 309.301 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 2.14/ and libor 6 month duration 2.64

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

G0LD LENDING RATE: + .50

 

 

XXXXXXXX

12 Month MM GOFO
+ 2.44%

LIBOR FOR 12 MONTH DURATION: 2.75

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.31

end

 

PHYSICAL GOLD/SILVER STORIES

end
i) GOLDCORE BLOG/Mark O’Byrne

Silver B

 

GATA STORIES WITH RESPECT TO GOLD/PRECIOUS METALS.

Trump wants lower interest rates as well as the Fed to stop shrinking its balance sheet.

(bloomberg/gata)

Trump says Fed should cut rates and stop shrinking balance sheet

 Section: 

By Margaret Talev and Craig Torres
Bloomberg News
Friday, April 5, 2019

President Donald Trump said today the Federal Reserve should cut interest rates and stop shrinking its balance sheet, maintaining his pressure on the central bank over its monetary policy.

“I think the Fed should drop rates. I think they really slowed us down. They should get rid of quantitative tightening” and instead restore quantitative easing, Trump told reporters as he departed the White House. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-04-05/trump-says-fed-should.

end

This is outlined below: China increases the pace of announced additions to its gold reserves.  They are probably sending a message to the rest of the world.

(Bloomberg)

China increases pace of announced additions to gold reserve

 Section: 

China Is on a Big Gold-Buying Spree

By Ranjeetha Pakiam
Bloomberg News
Sunday, April 7, 2019

China is on a bullion-buying spree. The world’s second-largest economy expanded its gold reserves for the fourth straight month, adding to optimism that central banks globally will continue to build holdings.

The People’s Bank of China raised reserves to 60.62 million ounces in March from 60.26 million a month earlier, according to data on its website. In tonnage terms, last month’s inflow was 11.2 tons, following the addition of 9.95 tons in February, 11.8 tons in January, and 9.95 tons in December

… 

China, the world’s top gold producer and consumer, is facing signs of a slowing economy, even as some progress is being made in trade negotiations with the U.S. The latest data from the PBOC indicate that the country has resumed adding gold to its reserves at a steady pace, much like the period from mid-2015 to October 2016, when the country boosted holdings almost every month. Should China continue to accumulate bullion at that pace over 2019, it may end the year as the top buyer after Russia, which added 274 tons in 2018. …… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-04-07/china-continues-gold-…

* * *

Help keep GATA going

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

http://www.gata.org

To contribute to GATA, please visit:

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

The New York Sun states that there is panic over Trump’s two picks, Moore and Cain. There is no panic withus
(courtesy New York Sun/GATA)

New York Sun: The panic over the Federal Reserve

 Section: 

From the New York Sun
Sunday, April 7, 2019

It’s hard to recall from the journalistic pack such a panic as has erupted over news that President Trump intends to name Stephen Moore and Herman Cain to the board of the Federal Reserve. The New York Times warns the Fed could end up under the presidential “thumb.” A “hideous specter,” says the Washington Post. “Sabotage” cries the Financial Times. They all bewail the Fed’s independence.

We’re tempted to say that all this solicitude over monetary policy warms the cockles of what’s left of our heart. Yet the fact of the matter is that none of them — neither of the two Timeses nor the Post — are worried about an independent monetary policy. If they were, they’d have been in the fight for the gold standard long ago. It’s the classical, constitutional way to keep monetary policy sound and honest. …

… For the remainder of the commentary:

https://www.nysun.com/editorials/the-panic-over-the-federal-reserve/9063..

END

Bloomberg states its opinion that the Fed will bow to Trump’s bid for lower interest rates. Trump wants lower rates because he sees:  “no inflation”

 

(courtesy Miller/GATA)

This sounds like a rationale for more gold price suppression by the U.S.

 Section: 

Fed May Bow to Trump’s Call for Rate Cuts If Inflation Softens

By Rich Miller
Bloomberg News
Sunday, April 7, 2019

With his call for lower interest rates, President Donald Trump has weighed into a debate inside the Federal Reserve about what central bankers should do about sub-par inflation. It’s not totally crazy to think he’ll eventually carry the day.

In advocating easier credit, Trump and senior economic adviser Larry Kudlow have harped on the paucity of inflation to justify their call for a change of course by the central bank, even with the U.S. economy still expanding.

… 

“The Fed should drop rates,” Trump told reporters on Friday after the government reported a larger-than-expected jump in payrolls for March. “They really slowed us down. There’s no inflation.” …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-04-07/fed-may-bow-to-trump-…

* * *

Help keep GATA going:

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

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node

end

Gold and silver coins are money and thus should never be taxed. Kudos to West Virginia to exempt bullion coins from sales tax.

(courtesy Numismatic News/GATA)

West Virginia exempts bullion coins from sales tax

 Section: 

From Numismatic News, Stevens Point, Wisconsin
Sunday, April 7, 2019

By unanimous vote March 8, the West Virginia Legislature approved Senate Bill 502, originally introduced by Sen. Craig Blaire, R-Martinsburg, which called for the exemption of taxation on sales of investment metal bullion and investment coins. On March 27 West Virginia Gov. Jim Justice signed the bill into law. The law will go into effect on July 1.

The bill defines investment metal bullion as “any elementary precious metal which has been put through a process of smelting or refining, including gold, silver, platinum, and palladium, and which is in such a state or condition that its value depends upon its content and not its form. Investment metal bullion does not include precious metal which has been assembled, fabricated, manufactured, or processed in one or more specific and customary industrial, professional, aesthetic or artistic uses.” …

… For the remainder of the report:

https://www.numismaticnews.net/article/west-virginia-to-end-sales-taxati…

end


iii) Other Physical stories
This ought to be fun:  Italy’s gold does not belong to its people unlike the uSA where its gold is down by its citizens.  Now the two major coalition partners want to change the rules:
1. it wants the Bank of Italy to buy back shares of of the Bank of Italy held by private banks
2. it wants all of its gold to be declared an asset of the people
good luck to them when they find that most of their gold has been leased out…
(courtesy zerohedge)

“It Belongs To The People, Not The Bankers” – Italy Moves To Seize Gold From Central Bank

Two weeks ago, somewhat out of the blue, ECB President Mario Draghi issued an odd statement confirming that the European Central Bank needs to approve any operation in the foreign reserves of euro zone countries, including gold and large foreign currency holdings.

“The ECB shall approve both the operations in foreign reserve assets remaining with the NCBs (national central banks)…and Member States’ transactions with their foreign exchange working balances above a certain threshold,”

“The purpose of this competence is to ensure consistency with the exchange rate and monetary policy of the Union.”

Specifically, Draghi made this statement to two Italian members of the European Parliament.

At the time it did not seem notable for any reason other than its peculiar timing, but now things are starting to make more sense as The Wall Street Journal reports that Italy’s ruling populists pushed ahead this week with efforts to seize control of the central bank and its gold reserves.

Complaining that hundreds of thousands of small individual investors lost billions of dollars after several Italian banks failed in recent years, the anti-establishment ‘5 Star Movement’ and the nationalist ‘League’, depict the central bank as a symbol of a technocratic elite aloof from the needs of ordinary Italians

We need a change of course at the Bank of Italy if we think about what happened in the last years,” said Deputy Prime Minister Luigi Di Maio, leader of the 5 Star Movement.

Five Star and the League have repeatedly attacked the Bank of Italy for not preventing the banking crises, and blamed it for the losses suffered by mom-and-pop savers who had bought bank shares and bonds.

“If you are here with your current account in the red, it’s because the people who were supposed to control things didn’t do so,” League’s leader, Interior Minister Matteo Salvini, told a group of former investors in Banca Popolare di Vicenza, which was liquidated in 2017.

And this week saw Italian lawmakers from 5 Star asking Parliament to pass two draft laws:

One law wouldinstruct the central bank’s owners, most of them private banks, to sell their shares to the Italian Treasury at prices from the 1930s.

The other law woulddeclare the Italian people to be the owners of the Bank of Italy’s reserve of 2451.8 metric tons of gold, worth around $102 billion at current prices.

As The Wall Street Journal notes, such a move could in theory widen the scope for selling the gold and reduce the bank’s reserves, which help underpin the financial system

“The gold belongs to the Italians, not to the bankers,” said Giorgia Meloni, leader of the Brothers of Italy, a far-right opposition party that supports both bills. “We are ready to battle everywhere in Italy and to bring Italians to the streets if necessary.”

The establishment sees it differently, warning that their actions are an attempt to undermine the Bank of Italy’s independence, and to spend the nation’s gold reserves on populist policies.

“Gold is part of the assets of the Bank of Italy and can’t be used for monetary financing of the Treasury,” said Bank of Italy Governor Ignazio Visco.

“This looks like revolutionary expropriation,” said Gianluca Garbi, chief executive of Banca Sistema SpA.

But as The Wall Street Journal concludes, the 5 Star Movement and the League support public ownership of the gold reserves, and with backing from parties comprising 60% of lawmakers, the draft law has enough support to pass. Lawmakers from 5 Star also support nationalizing the central bank, while the League hasn’t decided yet, leaving the bill short of a majority with around 40% support.

As of last week they had forced the creation of a parliamentary commission to look into the failure of Italian banks, launching what could be months of tense scrutiny.

Is it any wonder, Russia (and China) have started to horde gold?

end

For the 4th month in a row, China has added gold its official reserves.  It added 11.2 tonnes of gold to its reserves which now sand at 60.62 million oz. or 1885.50 tonnes of gold.  This gold has already been bought previously and produced by China.  China produces are 410 tonnes of gold per year or 34 tonnes per month. This is the bare minimum that its reserves must rise since it does not ship any gold outside the country. We are in the camp that suggests that China has between 20,000 to 25,000 tonnes of gold stored away.
(courtesy Pakiam/Bloomberg)

China Is on a Big Gold-Buying Spree

China’s on a bullion-buying spree. The world’s second-largest economy expanded its gold reserves for the fourth straight month, adding to optimism that central banks globally will continue to build holdings.

The People’s Bank of China raised reserves to 60.62 million ounces in March from 60.26 million a month earlier, according to data on its website. In tonnage terms, last month’s inflow was 11.2 tons, following the addition of 9.95 tons in February, 11.8 tons in January and 9.95 tons in December.

China, the world’s top gold producer and consumer, is facing signs of a slowing economy, even as some progress is being made in trade negotiations with the U.S. The latest data from the PBOC indicate that the country has resumed adding gold to its reserves at a steady pace, much like the period from mid-2015 to October 2016, when the country boosted holdings almost every month. Should China continue to accumulate bullion at that pace over 2019, it may end the year as the top buyer after Russia, which added 274 tons in 2018.

China has expanded gold reserves in recent months

Governments worldwide added 651.5 tons of bullion in 2018, the second-highest total on record, according to the World Gold Council. Russia quadrupled its reserves within the span of a decade amid President Vladimir Putin’s quest to break the country’s reliance on the U.S. dollar, and data from the central bank show that holdings rose by 1 million ounces in February, the most since November.

Spot gold fell for a second straight month in March even after the Federal Reserve said it would pause on interest rate hikes for the rest of the year, which lead to a surge in equities instead. Still, the longer term outlook is more bullish as central bank purchases should be supportive of prices, with inflows running as high as last year, said Goldman Sachs Group Inc., which expects a rally to $1,450 an ounce over 12 months. Bullion for immediate delivery was at $1,291.76 pm on Friday.

China has previously gone long periods without revealing increases in gold holdings. When the central bank announced a 57 percent jump in reserves to 53.3 million ounces in mid-2015, it was the first update in six years. The latest pause was from October 2016 until December last year.

end

China, announced that it added 11.2 tonnes of gold to its official reserves even though it produces around 34 tonnes per month. However after a long hiatus of not reporting, this is the 4th straight month of “official” additions.  The last time that they started to increase their official reserves, they engaged in a wicked devaluation.

Are they signaling another such event

(courtesy zerohedge).

Is Beijing Signaling An Imminent Currency Devaluation: China Unleashes Gold Buying Spree

Last week we showed how, in a time when reserve managers are actively selling a modest if notable amount of their dollar reserve holdings and replacing them with everything from the yen, to the euro and yen, the one country that has decided it will no longer be part of the USD monetary sphere of influence, is Russia, which has been dumping dollars and buying gold at the fastest pace in decades.

Russia

Yet while Moscow’s appetite for gold, which has doubled Russia’s international gold reserves over the past three years, remains unparalleled, Beijing has also quietly joined its northern neighbor in casting a smaller if just as material vote of no confidence in the dollar: overnight, the PBOC reported that the world’s second-largest economy added to its gold reserves for the fourth straight month, adding to recent speculation that central banks globally will continue to build holdings even as they dispose of their US dollar reserves.

 

Reserves

According to the latest Chinese reserve data, the country’s gold reserves rose to 60.62 million ounces (1885 tonnes) in March from 60.26 million a month earlier, according to data on its website. This was the fourth consecutive month of gold increases: last month’s inflow was 11.2 tons, following the addition of 9.95 tons in February, 11.8 tons in January and 9.95 tons in December. As shown in the chart below, the recent buying spree resumed after a 25 month hiatus, as China stopped reporting gold purchases in October 2016. This trend broke in December, when Beijing announced it had once again started accumulating gold.

As gold bugs are well aware, prior to the last accumulation episode, China had gone for long periods of time without revealing increases in its gold holdings, which confirms that for China reporting whether it is buying gold is not a matter of transparency but sending a clear, political signal (clearly one indicating declining faith in the dollar). When the central bank announced a 57 percent jump in reserves to 53.3 million ounces in mid-2015, it was the first update in six years. And as noted above, the latest pause was from October 2016 until December last year.

As Bloomberg notes, the latest PBOC data indicate that the country has resumed adding gold to its reserves at a steady pace, much like the period from mid-2015 to October 2016, when the country boosted holdings almost every month.

Two observations are worth making here: if China continues to accumulate physical gold at that pace over 2019, it will likely end the year as the top buyer after Russia, which added 274 tons in 2018. More important, however, is that the last time China resumed its gold purchases, was just three months before China’s August 2015 yuan devaluation, which also unleashed a period of dramatic yuan volatility and Chinese economic weakness.

And since for China it is all about signaling – most analysts know that Beijing has been buying gold, it just hasn’t been disclosing this – the question is what exactly is the recent resumption of China’s gold buying meant to signal to the rest of the world?

Meanwhile, until we find out, the world’s isn’t sitting on its hands, as governments worldwide added a whopping 651.5 tons of bullion in 2018, the second-highest total on record, according to the World Gold Council, and nobody more so than Russia which quadrupled its reserves within the span of a decade amid President Vladimir Putin’s quest to break the country’s reliance on the U.S. dollar. Is China next?

end

LAWRIE WILLIAMS: Chinese central bank adds 11.2 tonnes of gold in March

One of the big questions for gold this year is whether official purchase will be maintained at anywhere near last year’s level of 651.5 tonnes – the highest level since 1971 when President Nixon ended the U.S. dollar’s gold convertibility and launched the fiat currency era. Despite Russia and Kazakhstan seen as likely continuing monthly purchases at similar levels to 2018, when the former bought just over 274 tonnes and the latter 50.6 tonnes, accounting for almost 50% of official purchases, the general consensus has been that the totals reported to the IMF might slip a little this year. But the likelihood of official purchases matching, or even exceeding, last year’s total have been enhanced by China returning to announce monthly purchases as from December last year.

Thus, this year China has announced purchases each month to date with the latest 11,2 tonne increasing March, making a total of almost 33 tonnes in the first quarter of the year. At this rate China would add over 130 tonnes in the full year. What we don’t know of course is whether the country also added to its gold reserves over the previous 24 months of reporting zero increases in its reserves to the IMF. It has a track record of building its gold reserves under the radar for several years in a row and then announcing big rises. Has that been the case also for the past couple of years.

Overall one suspects China is, like Russia and probably some other nations too, in diversifying its reserves away from dependence on the U.S. dollar as a reserve currency. The U.S. has been demonstrating its readiness to use the dollar, and its links to global trade, as a weapon to try and bring enemies and allies into line with its global foreign policy, and is running into problems where U.S. policies are not necessarily allied to those of friend and enemy alike. As pointed out in an article in Grant Williams’ excellent ‘Things that make you go hmm..’ newsletter (www.ttmygh.com) the usage of other currencies – notably the Euro and the yuan – as reserve currency elements are growing at the U.S. dollar’s expense. Quoting the U.K.’s Daily Telegraph, it was pointed out that the U.S. dollar’s share of global central bank monetary reserves fell to a still dominant 61.94% in Q$ 2018 – the third successive month of falls. Meanwhile the Euro’s share rose to 20.69 percent – the highest level for four years despite Brexit uncertainties, and the yuan to a still very small 189%, the highest level since the IMF started reporting these levels in Q4 2016. The movement is slow at the moment but the more the U.S. weaponises the dollar, the more this trend will likely continue.

Threats to withdraw access to SWIFT, the key transfer element in global trade, to countries which ignore U.S. economic sanctions (even where it is not their own policy) has seen China create an alternative (with CIPS). A number of Russian banks have joined this system already which is significant given the two countries’ growing trade links, particularly with respect to oil and gar supplies from Russia to China.

The article ends with the comment: “Excluding political enemies from the global dollar system will remain a weapon that can be used at Washington’s whim. But the more the dollar is weaponised against individual countries, the more likely it will be that they will seek alternatives that will bypass the US currency. Although it will take some time for the dollar to be dethroned, current US policies could accelerate its demise as the reserve currency of choice…”

The latest TTMYGH newsletter largely concentrates on the enormous vulnerability in the semiconductor sector where equities have soared despite huge warning signs that the sector is turning down hugely. This follows on from TTMYGH Newsletters highlighting the big downturn in the global motor manufacturing sector and on the collapses which are becoming very apparent in the retail sector. This suggests a serious recession ahead with equities crashing from their rose-tinted highs. As Michael Lewitt would say in his Credit Strategist newsletters – “Buy gold and save yourselves!” We think the yellow metal’s day cannot be far away now.

08 Apr 2019

-END-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

 

end

* * *

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

i) Chinese yuan vs USA dollar/CLOSED/ LAST AT: 6.7189/

//OFFSHORE YUAN:  6.7234   /shanghai bourse CLOSED down 1.76 or .05%

HANG SANG CLOSED up 140.83 points or .47%

 

2. Nikkei closed DOWN 45.65 POINTS OR 0.21%

 

 

 

 

3. Europe stocks OPENED MIXED 

 

 

 

 

 

USA dollar index FALLS TO 97.19/Euro RISES TO 1.1246

3b Japan 10 year bond yield: FALLS TO. –.05/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 111.71/ 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:: 63/37 and Brent: 70.64

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 UP for WTI and UP FOR Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO +01%/Italian 10 yr bond yield DOWN to 2.48% /SPAIN 10 YR BOND YIELD DOWN TO 1.09%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.47: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 3.48

3k Gold at $1297.60 silver at:15.16   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble PU 29/100 in roubles/dollar) 65.22

3m oil into the 63 dollar handle for WTI and 70 handle for Brent/

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

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 111.46 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 0.9996 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1242 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 +0.01%

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 2.50% early this morning. Thirty year rate at 2.91%

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

6.  TURKISH LIRA:  UP  TO 5.6829..GETTING DANGEROUS

 

Futures Slide, Dragged By Boeing, Lack Of “US-China Deal Optimism”

If Boeing thought it could sweep its Boeing 737 MAX production cut under the rug with a late Friday announcement it failed: the company’s decision to cut 737 production by 20% sent BA shares 4% lower in pre-market trading with a BofA downgrade to Neutral not helping, and hit the shares of its suppliers including Meggitt, Melrose and Safran, which all fell between 1 percent and 2.5 percent. More importantly, since Boeing is the biggest component of the Dow, futures on the ‘industrial average’ were lower, with the implied open down more than 100 points, while global market and government bonds also drifted lower as progress toward a trade deal between America and China continued to drag. Oil rose as fighting in Libya raised the risk of supply outages.

As a reminder, on Friday Boeing announced that 737 production will be cut to 42 airplanes per month from 52 starting in mid-April, without giving an end date. Investment bank Cowen said Boeing’s decision to cut the production of the 737 was the right thing to do. “The 737 rate cut to 42/month should help resolve the MAX crisis but with a large 2019 cash hit,” wrote Cowen in a note.

Boeing’s latest woes did not help equity markets around the world, as last week’s global stock rally hit the pause button with MSCI’s world equity index flat as potential flashpoints including a crucial Brexit summit and central bank meetings loomed, and investors began to look ahead to an earnings season that would usher in an earnings recession according to Morgan Stanley.

 

While Dow futures took the brunt of the hit due to Boeing’s dominant position in the index, S&P 500 futs were also lower after the biggest US benchmark rounded out last week with gains that took it to a six-month high, while the Stoxx Europe 600 also nudged into the red. A rally in Shanghai fizzled out, and equities fell in Tokyo as the yen pushed higher.

China equity markets reopened after Friday’s holiday with handsome gains, but they were wiped out by midday with traders awaiting more “optimism” from U.S.-China trade talks; as a result the Shanghai Composite closed 0.1% lower after rising as much as 1.3% earlier; ChiNext index slides 2.1% while the MSCI Asia Pacific index was little changed. Early optimism emerged after a document was published on the central government’s website late on Sunday, in which Beijing said it would step up a policy of targeted cuts to banks’ required reserve ratios to encourage financing for small and medium-sized businesses. Shares rose in Sydney and saw modest gains in Hong Kong.

Early trading in Europe was also muted, with German exports and imports both falling more than expected in February, the latest sign that Europe’s largest economy will likely have meager growth in the first quarter amid increased headwinds from abroad. European stocks slipped 0.2% in early trading, as the weak German data and investor caution ahead of a string of political and monetary policy events held the market back. However, since then the Stoxx 600 index has pared losses and turns slightly positive, as the euro climbs against the dollar ahead of the EU summit. Healthcare (+0.5%) and oil & gas (+0.5%) lead gains, while Travel (-0.5%), construction (-0.5%) and financial services (-0.5%) the main laggards.

Euphoria was also muted due to lack of new trade deal developments, even though Trump’s top economic adviser Larry Kudlow said the two sides are “closer and closer” to a deal, and that top-tier officials would be talking this week. A strong U.S. jobs report Friday didn’t stop President Trump from suggesting the Fed should cut interest rates and stop shrinking its balance sheet.

“Today’s very minor move down has to be seen in light of recent developments,” said Britta Weidenbach, head of European equities at DWS. “We’re back at the levels where the correction started last year. So now the question certainly is, what’s next?”

Quite a few things are next, in fact, as Wednesday is a blockbuster day. We have the EU emergency Brexit summit where they will decide whether to grant the U.K. a further extension and on what terms, an ECB meeting a day earlier than normal, the US CPI report and FOMC minutes all slated for that day. That should be the highlight of the week ahead however we’ve also got a busy week for data out of China, as well as a number of scheduled Fed speakers, the annual IMF and World Bank Spring Meetings and a China-EU Summit. If that wasn’t enough, US banks also kick off earnings season at the end of the week. Oh and Friday also marks the revised point that the U.K. leaves the EU if no extension is given this week.

Investors will also focus on the upcoming earnings season, which kicks off at the end of this week with U.S. banks reporting, and which will be a reality check for markets as analysts now expect a roughly 4% drop in EPS Y/Y, the first such drop since 2016.

“Q1 will definitely not be a good quarter for corporates, and it might well be that the market turns back to fundamentals whereas a lot of hope on China/U.S. trade deals and developments on the interest rate front had driven markets up year-to-date,” said DWS’ Weidenbach.

Bond markets were being squeezed by investors’ search for yield after benchmark German Bunds fell into negative territory. Greece’s 10-year government bond yields were within a shade of their lowest level in over 13 years as a cocktail of positive headlines boosted sentiment towards the country and zero percent Bund yields push investors to riskier investments. German bund yields traded at 1 basis point, just holding in positive territory, while US Treasuries and the dollar were steady after President Donald Trump stepped up pressure on the Federal Reserve to sustain growth.

Looking ahead, though, optimism persists: “Valuations are OK, global growth is expected to improve into the second half of the year, monetary and fiscal policy has become more supportive of markets and the trade war is receding,” said Shane Oliver, investment strategist at AMP Capital Investors Ltd. This “should support decent gains for share markets through 2019 as a whole,” he said.

In the latest Brexit news, UK PM May could offer the Labour Party a post-Brexit customs union today, prior to this The Times reports that PM May is set to offer Jeremy Corbyn a legally binding soft Brexit deal with a “Boris lock” that would make it difficult for a future Eurosceptic prime minister to tear up after she leaves No 10. (Newswires/Times) Separately, UK Labour party want a firm indication that the government is prepared to reopen the political declaration, there may be some movement later (either talks or a new offer), according to BBC’s Nick Eardley. Conservative MPs are warning that they will move to remove UK PM May within weeks if the UK is forced to partake in EU elections and extend membership beyond the end of June.

In FX, we saw some more risk-aversion, as the dollar slipped 0.1% to 97.269 against a basket of currencies, while the euro inched up 0.1%, but hovered near a one-month low at $1.1229 ahead of the ECB meeting later this week. The pound edged higher as British Prime Minister Theresa May appealed to both the public and politicians in search of support for a compromise Brexit plan; whe needs to come up with a new plan to secure a delay from EU leaders at a summit on Wednesday as a deadline of this Friday draws ever closer. In Turkey, President Recep Tayyip Erdogan cited “widespread irregularities” in local elections in Istanbul, sending the lira lower.

In commodities, crude extended gains as an escalation of fighting in OPEC producer Libya overshadowed the biggest increase in U.S. active rigs since May. WTI and Brent prices are revisiting levels last seen in November 2018 (USD 63/bbl and USD 70/bbl respectively). Gains are spurred as conflict in Libya escalates, with Hafta ordering his troops to march towards Tripoli. The fight has not yet effected oil supply, with Port Zawiya closely monitored by oil traders as it is the closest to the conflict. In metals, London copper prices rose as much as 1 percent on Monday, snapping two days of declines.

Expected data include factory orders and durable-goods orders. Kenon Holdings is reporting earnings.

Market Snapshot

  • S&P 500 futures down 0.2% to 2,891.75
  • STOXX Europe 600 down 0.2% to 387.57
  • MXAP up 0.08% to 162.65
  • MXAPJ up 0.2% to 540.47
  • Nikkei down 0.2% to 21,761.65
  • Topix down 0.4% to 1,620.14
  • Hang Seng Index up 0.5% to 30,077.15
  • Shanghai Composite down 0.05% to 3,244.81
  • Sensex down 0.5% to 38,652.54
  • Australia S&P/ASX 200 up 0.7% to 6,221.35
  • Kospi up 0.04% to 2,210.60
  • German 10Y yield unchanged at 0.008%
  • Euro up 0.2% to $1.1234
  • Italian 10Y yield fell 4.1 bps to 2.124%
  • Spanish 10Y yield fell 0.4 bps to 1.101%
  • Brent futures up 0.7% to $70.81/bbl
  • Gold spot up 0.4% to $1,297.25
  • U.S. Dollar Index down 0.2% to 97.24

Top Overnight News

  • U.S. President Donald Trump’s frustration over his inability to fulfill his signature 2016 campaign promise to curb illegal immigration led him to oust his second homeland security chief, as the president eyes his re-election prospects next year; Homeland Security Secretary Kirstjen Nielsen resigned at Trump’s request after meeting with him Sunday, according to people familiar with the matter
  • A long but flexible extension to the Brexit process proposed by the European Union was denounced as “like purgatory” by a leading U.K. lawmaker, as Prime Minister Theresa May sought to gain support for a compromise departure plan
  • Larry Kudlow says the U.S. and China are “closer and closer” to a trade deal, and that top-tier officials would be talking again this week via “a lot of teleconferencing”
  • Bank of Japan Governor Haruhiko Kuroda says the economy is expanding moderately though weakness in overseas economies is weighing on exports and production
  • Oil extended its rally to a five-month high as conflict in major producer Libya increased the risk of new supply outages. Libya’s internationally-recognized government vowed to counterattack against forces loyal to strongman Khalifa Haftar
  • Japanese investors turned net buyers of German sovereign bonds in February, ending a four-month selling streak, according to balance-of-payments data
  • China’s foreign-currency holdings rose as lower government bond yields in developed markets lifted valuations. Reserves increased by $8.58b to $3.0988t in March, the People’s Bank of China said
  • Theresa May is hoping to re-start stalled Brexit negotiations with her chief political rival Jeremy Corbyn, in her search for a compromise plan she can sell to European leaders at a crucial summit this week
  • Japanese investors bought German and French bonds in February, when deepening concern over Europe’s economic slowdown spurred speculation the region’s central bank would join the Federal Reserve in turning dovish on monetary policy
  • Turkish President Recep Tayyip Erdogan urged the country’s election board to investigate “widespread irregularities” in local elections in Istanbul, where a partial recount is already underway after the ruling party contested its defeat. The lira declined on the remarks
  • According to a BOE survey released Monday, 47% of people see rates going up in the next 12 months, compared with 53% in November. Markets are also increasingly pessimistic of a hike amid increased Brexit uncertainty, and see a less than 10% chance of a move in the next year

Asian equity markets began the week mixed as the region somewhat failed to sustain the initial momentum from last Friday’s gains on Wall St, where all majors edged higher and the S&P 500 notched a 7-day win streak after the latest NFP data. ASX 200 (+0.6%) and Nikkei 225 (-0.2%) both opened higher with commodity-related sectors among the biggest gainers in Australia due to strength in metal prices and after WTI crude rallied to fresh YTD highs above the USD 63.00/bbl level, while risk appetite in Japan was less decisive and eventually waned as exporters contended with flows into JPY. Hang Seng (+0.4%) and Shanghai Comp. (U/C) were initially buoyed on return from their extended weekend as they played catch up to the optimism from last week’s US-China trade talks in which both sides noted significant progress was made and with discussions to continue via teleconference this week, while China also plans to ease the burden on businesses in which it will reduce companies’ social insurance contributions by CNY 300bln. However, the mainland gradually deteriorated as some were kept cautious by reports that plans for a US-China joint statement hit a stalemate due to differences regarding access to China’s market. Finally, 10yr JGBs were mildly higher with prices supported as the initial positive momentum in the region waned and with the BoJ present in the market for JPY 280bln in JGBs, while prices also tracked the rebound seen in T-notes in the wake of the US jobs data where weak wage growth subsequently saw the probability of a Fed rate cut this year increase to 75% before paring back to 50%.

Top Asian News

  • China Steps Up Gold-Buying Spree as PBOC’s Hoard Rises Again
  • UniCredit China Employee Said to Allegedly Embezzle $15 Million
  • India’s Cash Crunch Is Weighing on Financial Health of Firms
  • Lira Falls as Erdogan Demands Probe Into Lost Istanbul Vote

A subdued start to the week for European equities [Stoxx 600 unch] following on from a mixed Asia-Pac session as Friday’s NFP optimism waned ahead of another week filled with risk events. Broad-based losses are being experienced across major indices, whilst sectors are relatively mixed with energy names outperforming after WTI and Brent crude rallied to fresh YTD highs. In terms of individual movers, BMW (-0.4%) shares have nursed some losses after opening lower in excess of 2% amid reports that its Q1 results will be impacted by the EU fines into antitrust proceedings. This initially pressured its fellow German peers in sympathy [Daimler (-0.2%), Volkswagen (+0.4%)] who later climbed back above break-even. Sticking with Germany, Dialog Semiconductor (+1.1%) shares were bolstered amid news that the company closed a deal with US tech giant Apple (-0.4% pre-market), ahead of schedule. Finally, Fiat Chrysler (+1.3%) rose to the top of the FTSE MIB following reports the Co. signed a deal with Tesla to bypass EU emission rules. Elsewhere, Boeing (BA) CEO says they plan to cut their 737 Max monthly production by just under 20%. As such Co. are lower by 2.6% in the pre-market.

Top European News

  • Swedbank’s Debt Headache Reveals a ‘Remarkable’ Bond Outlier
  • Fiat to Pool Cars With Tesla to Meet EU Emissions Targets on CO2
  • Ashley Floats New Plan to Stave Off Debenhams Equity Wipeout

In FX, the Dollar continues to drift down from initial post-NFP highs as global stocks wobble and oil climbs to fresh ytd peaks. The DXY remains relatively rangebound, however, and ‘comfortably’ above the 97.000 handle within 97.230-384 parameters.

  • JPY/GBP – The Yen has regained a safe-haven bid and rebounded from circa 111.80 lows through 111.50 and close to the 200 DMA (111.495) vs the Greenback, while technical buying was also noted during the Asia-Pacific session in several Jpy crosses including Eur/Jpy and Nzd/Jpy that tested psychological/round number levels at 125.00 and 75.00 respectively. Meanwhile, Sterling retains an underlying bid vs the Buck above 1.3000 and is straddling 1.3050, as Eur/Gbp pivots 0.8600 in the run up to Wednesday’s EU Brexit Summit when UK PM May will present the case for another A 50 extension backed by a withdrawal plan or at least a strategy to avert no deal on April 12. On that note, she will resume talks with the Labour Party in an effort to find a compromise amidst reports that the opposition want a firm commitment to re-opening the PD rather than additions to the existing document.
  • EUR – The single currency is also holding above a big figure mark vs the Dollar and 2019 lows not far below 1.1200, but chart resistance around 1.1250 and a key Fib is still capping the upside, while hefty option expiry interest at 1.1225 (1.4 bn) is also weighing on the headline pair.
  • NZD/CAD/AUD/CHF – All relatively flat and narrowly mixed vs the Usd, as the Kiwi meanders between 0.6723-37 and also has expiries close by to exert some influence into the NY cut (1 bn at 0.6725). Elsewhere, another upturn in oil prices has helped the Loonie reverse some post-Canadian jobs data losses within a 1.3390-70 band, and is also supporting the NOK vs the Eur with the cross back down through 9.6500. Note, Barclays has shorted Eur/Nok and is looking for a move to 9.5908 with a 9.7100 stop. Elsewhere, the Aussie is hovering around 0.7100 and Franc is sitting tight near parity.
  • EM – The Lira has weakened even further vs the Dollar as municipal election results are recounted in Istanbul and Turkey mulls military action in Syria, while the CBRT has cut its FX swap rate by 150 bp and decided to restart 1 week refunding operations. Usd/Try up over 5.7000 and 5.7100+ at one stage.

In commodities, further supply-side woes have bolstered the energy complex to YTD highs with WTI and Brent futures revisiting levels last seen in November 2018 (USD 63/bbl and USD 70/bbl respectively). Gains are spurred as conflict in Libya escalates, with Hafta ordering his troops to march towards Tripoli. The fight has not yet effected oil supply, with Port Zawiya closely monitored by oil traders as it is the closest to the conflict. The port is scheduled to load 6mln barrels of crude in April which is subject to change if shipments are delayed. Amidst this, the oil complex last week saw speculators adding to their net long positive positions, with managed money positions in ICE Brent rising by just under 27k to result in net long speculative positions at almost 350k lots, the largest since the end of October 2018. Elsewhere, Saudi Energy Minister noted that he does not believe the Kingdom needs to cut output below its target, whilst a key architect of Russia’s OPEC+ deal said that the members could raise oil output in its June meeting. On the Aramco front, Saudi Energy Minister Al-Falih stated that the Aramco bond could attract demand north of USD 30bln (vs. touted USD 10bln) which will be used as part of a payment for the 70% purchase of Sabic (valued at USD 6.9bln). In the metals complex, gold prices are underpinned as the Greenback softened overnight and continues to pull back during the European session thus far. Demand for the yellow metal was also reflected in an increase in China’s gold reserves which showed the fourth consecutive month of gold purchases. Elsewhere, copper benefitted amid overnight gains across Chinese commodity prices in which Dalian iron ore futures extended on record highs, while Shanghai rebar and hot rolled coil rallied over 3% shortly after the open.

US Event Calendar

  • 10am: Factory Orders, est. -0.5%, prior 0.1%; Factory Orders Ex Trans, prior -0.2%
  • 10am: Durable Goods Orders, est. -1.6%, prior -1.6%; Durables Ex Transportation, est. 0.1%, prior 0.1%
  • 10am: Cap Goods Orders Nondef Ex Air, prior -0.1%; Cap Goods Ship Nondef Ex Air, prior 0.0%

DB’s Jim Reid concludes the overnight wrap

This week is set to be busy but get an early night on Tuesday (I can’t due to Champions League football. Exciting!) as Wednesday is a blockbuster day. We have the EU emergency Brexit summit where they will decide whether to grant the U.K. a further extension and on what terms, an ECB meeting a day earlier than normal, the US CPI report and FOMC minutes all slated for that day. That should be the highlight of the week ahead however we’ve also got a busy week for data out of China, as well as a number of scheduled Fed speakers, the annual IMF and World Bank Spring Meetings and a China-EU Summit. If that wasn’t enough, US banks also kick off earnings season at the end of the week. Oh and Friday also marks the revised point that the U.K. leaves the EU if no extension is given this week.

We may also see more US/China trade headlines this week and as a start over the weekend, President Trump’s economic adviser Larry Kudlow said that the US and China are getting “closer and closer” to a trade deal, and that top-tier officials would be talking again this week via “a lot of teleconferencing.” He added that “we’ve made great progress on the IP theft. We’ve made good progress on the forced transfer of technology,” the Chinese have acknowledged their problems, which was a very big hurdle, and “what wasn’t on the table, is on the table.” However, China’s state run news agency Xinhua had said on Friday that “the remaining issues are all hard nuts to crack” while the White House official statement post last week’s trade talks suggested that “significant work remains, and the principals, deputy ministers, and delegation members will be in continuous contact to resolve outstanding issues.” At the moment though it still seems like we are slowly inching towards a deal.

Asian markets have started the week on a mixed note with the Hang Seng (+0.30%) up while the Nikkei (-0.21%) and Kospi (-0.05%) are down erasing early gains. China’s Shanghai Comp was up as much as +0.76% in early trading but is now down (-0.09%) with semiconductor and chip makers stocks weighing on the index (down -3.30%). Elsewhere, futures on the S&P 500 are down -0.17% while the Japanese yen is up +0.31% this morning. Oil prices (WTI +0.54% and Brent +0.51%) are also extending gains this morning as an escalation of fighting in Libya is threatening further supply cuts. In terms of data releases, we saw China’s March foreign reserves at $3.099tn (vs. $3.090tn expected). China’s onshore yuan is trading -0.17% this morning.

In other news, Italian daily Il Sole 24 Ore reported that Italy will make use of a contingency fund of €2bn to ensure its structural deficit target is met amid lower-than-forecast economic output and tax revenue. The media report follows earlier comments from Italian Deputy finance minister Massimo Garavaglia where he said that any shortfall in tax revenue would be offset by the ad hoc funds set aside in the budget following the comments from the EC Vice President Valdis Dombrovskis that weakening growth may force the country to freeze spending.

Moving onto Brexit, EC President Donald Tusk continues to push for a Brexit delay by as long as a year to allow time to forge a new consensus with an option to leave earlier once the withdrawal agreement is ratified by UK Parliament. As a reminder, PM May has asked for an extension up to June 30. Illustrating the tensions in her party, one of the leading Conservative lawmakers, Chief Secretary to the Treasury Liz Truss, warned on Sunday in a BBC radio interview that accepting a long, flexible extension would be “like purgatory” for Britain. Sterling is trading up +0.22% this morning.

Back to the week ahead. For the ECB it’s a chance for them to correct their messaging after disappointment expressed by the market after their last outing. Expect there to be plenty of questions directed at Draghi both on the TLTRO details and also the impact of negative rates. Newsflow on tiering has picked up in recent days including an acknowledgement in the latest meeting minutes. So markets will particularly be looking for clues as to where the internal debate on persistent low rates on bank margins, profitability and the transition mechanism now lies.

Shortly after the ECB on Wednesday we’ll get the March CPI report in the US. The consensus is for a +0.2% mom core reading (it usually is) which would be enough to hold the annual rate at a relatively solid +2.1% yoy. In the evening we then get the FOMC minutes from the March meeting. A reminder that the message from this meeting was undeniably dovish. The median dot moved to no rate hikes this year with seven officials also seeing the Fed on hold at least through the end of 2020.

In Europe the data highlight might be the February industrial production reports with data due for the UK and France on Wednesday and the Euro Area on Friday. However with the recent slight pick up in China manufacturing maybe it’s too early to see any decent turn in data that will be from February. Meanwhile in Asia it’s a busy week for data out of China with March CPI and PPI due on Thursday and March trade data due on Friday. We’re also expecting to get the latest money and credit aggregates data covering March at some stage.

At a more micro level, this week will also see an early drip feed of Q1 earnings in the US including the banks with both JP Morgan and Wells Fargo due to report on Friday. Our US equity strategists noted in their preview report that the consensus and their top-down earnings model points to near flat earnings for Q1 for the S&P 500.

Finally, other things to potentially watch out for this week include China Premier Li Keqiang travelling to Brussels for the five day China-EU Summit today, the annual week long Spring Meetings of the World Bank/IMF kicking off today/tomorrow, Israel’s general election tomorrow, the IMF’s latest World Economic Outlook update tomorrow, the US Congressional Committee holding a hearing on Wednesday with the chiefs of the biggest US banks on “Holding Megabanks Accountable”, the OPEC monthly oil market report on Wednesday, South Korea President Moon Jae-in meeting President Trump on Thursday, and India heading to the polls also on Thursday (albeit voting in phases with results in late May).

Ahead of all this, global equities performed well last week, with numerous major indexes advancing to multi-month highs. Friday’s nonfarm payrolls report didn’t do anything to damage the momentum but China’s PMI the preceding weekend and Europe’s generally better than expected PMIs in the first half of the week were the main catalysts. The S&P 500 gained +2.06% (+0.46% on Friday) to reach a fresh 6-month high, while the Stoxx 600 advanced +2.41% (+0.09% Friday). The DAX also reached a 6-month high, gaining +4.20% on the week (+0.18% Friday). Emerging markets outperformed, gaining +3.45% (+0.77% Friday) to reach their highest level since last August, with the Shanghai Composite pacing gains at +5.04% (closed Friday) to reach a 12-month high.

The positive sentiment pushed core bond yields higher, with treasuries and bunds ending the week +9.4bps and +7.7bps higher (-1.6bps and +1.3bps Friday), respectively. Peripheral European spreads tightened and corporate credit rallied. HY cash spreads in the US and Europe tightened -17bps and -22bps (-2bps and -3bps Friday), respectively. WTI oil advanced +5.20% (+1.88% Friday), boosted by the signs of strong US growth and by data from OPEC which showed a further decline in the cartel’s production.

Recapping Friday’s nonfarm payrolls report, we generally saw a continuation of the “goldilocks” environment, as the headline number beat expectations but wage growth fell short. The US economy added 196,000 jobs in March (177k expected) and the previous two months were revised higher by a net +14,000, with the unemployment rate staying steady at 3.8%. Average hourly earnings rose +0.1% mom, down from 0.4% mom in Feb and short of expectations for 0.3%. This led to the yoy rate dropping from 3.4% to 3.2% – 0.2% lower than expected.

Separately, President Trump made headlines on Friday by treading new ground in his war-of-words with the Fed. He said that “the Fed should drop rates” and that instead “of quantitative tightening, it should actually now be quantitative easing.” He cited the lack of inflation to support his view. Ten-year treasury yields fell a few basis points and the curve flattened slightly after his comments.

3. ASIAN AFFAIRS

i)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED DOWN 1.76 POINTS OR .05% //Hang Sang CLOSED UP 140.83 POINTS OR .47%  /The Nikkei closed DOWN 45.65 POINTS OR 0.46%/ Australia’s all ordinaires CLOSED UP 64%

/Chinese yuan (ONSHORE) closed DOWN  at 6.7189 AS TRUCE DECLARED FOR 3 MONTHS /Oil UP to 62.69 dollars per barrel for WTI and 69.52 for Brent. Stocks in Europe OPENED GREEN

ONSHORE YUAN CLOSED DOWN // LAST AT 6.7189 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.7234 / 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/CHINESE AFFAIRS

China/Boeing

More trouble for Boeing as China suspends its 6 billion dollar order for 100 of the Boeing 737 Max 8 planes

(courtesy zerohedge)

More Boeing Backlash: China Suspends $6 Billion Order For 100 737s

Dealing another blow to public confidence in Boeing’s ability to swiftly reassure regulators that its 737 MAX 8 can be made safe for passenger travel, the South China Post on Monday reported that China Aircraft Leasing Group Holdings has put an order for 100 new 737s on hold, until it can be assured of the aircraft’s safety.

This follows a decision by Indonesia’s national carrier to cancel a $6 billion 737 MAX order. The airline had been planning to order 49 planes. Boeing last week said it would cut its pace of production by 20% to just 42 a month.

China was the first country to ground the 737s after Ethiopian Airlines flight ET302 crashed just minutes after takeoff– the second deadly incident involving the planes in just 5 months. A preliminary report from investigators found that the pilots followed Boeing’s safety procedures, but were still unable to right the plane.

Boeing is working on an update of its MCAS anti-stall software, which is believed to have contributed to both the crash of ET302 and a deadly Lion Air crash that occurred just five months earlier, but the fix is taking longer than anticipated.

Boeing

Per its original delivery schedule, the first 737 was supposed to be delivered to the aircraft lessor in Q3 of this year. Originally, the lessor signed its contract with Boeing in June 2017, ordering 50 aircraft, then increasing it by 25 with an option for another 25. The order for the initial 50 aircraft was valued at $5.8 billion.

The company said it has stopped paying installments on the planes it has ordered.

The Hong Kong-listed lessor, controlled by the state-owned conglomerate China Everbright Group, placed an order for 50 aircraft in June 2017. CALC then increased it by another 25 in December with an option for 25 more as part of its plan to grow its overall fleet from 133 in 2018 to 232 by 2023. According to the original schedule, the first MAX jet was expected to be delivered to CALC in the third quarter of this year and continue up to 2023.

“The purchase has been suspended and we have stopped paying the installments,” said Chen Shuang, chairman of CALC and chief executive of China Everbright, the financial arm of China Everbright Group.

Airlines around the world have grounded the 737s, and last week, the FAA set up a joint review task force that is expected to include other aviation regulators, including possibly China’s, which has been invited to join.

Most of the deliveries weren’t expected until 2021, so the hold won’t impact the lessor’s operations, its spokesman said.

A CALC spokeswoman said that since most of the deliveries to the company were to be made from 2021, “so we see little or no impact on our operations.”

Chen said that they have received assurances from Boeing that “a better solution will be submitted to CALC within two months”, adding that they have not yet discussed compensation.

Chen said both sides are actively seeking a solution to the problem.

“One option being considered is to replace it with other aircraft. But there aren’t too many options,” said Chen.

Of course, the last thing Boeing shareholders wanted to hear after last week’s string of negative headlines was more bad news, particularly after the late-Friday announcement of its production cut, which the company had clearly hoped to sneak by the market. And following the revelation that Boeing might soon have a second large cancellation on its hands, Boeing’s shares – already lower – have sunk even further in premarket trading, weighing on the Dow.

4/EUROPEAN AFFAIRS

i)BREXIT/EU/UK

Tom Luongo on how the EU is tearing apart the UK over Brexit

end

(courtesy Tom Luongo)

The EU Is Tearing The UK Apart Over Brexit

Authored by Tom Luongo via The Strategic Culture Foundation,

Brexit has been a fascinating thing to watch.

Despite all of the twists and turns, the incomprehensible motions, legal maneuvers and behavior of Prime Minister Theresa “I Surrender” May, for me there’s been a simple through-line to it all.

The EU does not want Brexit and if it were to happen it will inflict incredible damage to the British political system and its integrity.

This is really no different than what happened in Greece in 2015. And it was directed by Angela Merkel than and it is being directed by Merkel today.

The EU’s intransigence in negotiations, aside from it having no other option, is an elaborate bluff to separate and divide the British political class, now that the people have voted to leave.

It preyed on the divisions within the U.K.’s structure, empowering Scottish ‘nationalists,’ the SNP, while offering power to the eternal victim-status seeking Labour leadership. It knew it had a Tory leadership willing to play ball with them to find a way to deliver BRINO – Brexit in Name Only – and a civil service that would provide all the supporting data to gaslight millions.

The hysteria over a ‘No-Deal’ Brexit is akin to the hysteria we’re seeing among the hard-left over Climate Change. So, I found it fitting watching a bunch of bare-assed, self-absorbed British watermelons – green on the outside, red on the inside – disrupting Parliament this week.

Both are built on foundations of sand. And both are expressions of the fear that their narratives and political power have peaked and are now on the down side. And when people begin to feel the loss of power and the fear kicks in, they become more desperate and more willing to cheat to win.

Make no mistake, the EU is cheating here. Billions in free advertising for their union is at their beck and call and put into the mouths of MPs, Cabinet Ministers and the media to peddle the worst and most disingenuous arguments against Brexit.

And that pressure is causing real cracks in the British political system.

While Labour, the SNP and the new Independent Group try to paint Brexit as some “Tory psychodrama” for political gains to blame shift their own betrayal of voters the Tories themselves are now fracturing under the pressure somewhat.

From Nick Boles resigning from the party after his ‘Common Market 2.0’ proposal failed to Richard Drax’s mea culpa for mistakenly voting for the May/Merkel Surrender Treaty on March 29th we’re seeing the effects this is having on everyone.

Some of it is Kabuki theatre to be sure. Boles’ resignation was an obvious stunt meant to shame MPs. Even Drax’s regrets had an air of worry over the voter backlash for betraying the Leave vote.

And look at the results. Arch-Remainer and former Attorney General, Dominic Grieve, who spent months working with EU officials to strategize openly on how to betray Brexit now faces de-selection from his constituents.

That’s what it takes to get rid of these people. The so-called Independent Group resigned from their parties and refused to call by-elections to confirm their seats. This is completely against all political protocol and an insult to their constituents. But what would you expect from an arrogant, self-important ignoramus like Anna Soubry?

The reason the EU’s plan to scuttle Brexit is failing is precisely because of what I saw months ago – the British people want their will, no matter how flawed, respected. And the political class is too consumed with its own self-righteousness that it cannot see this.

The entire process has made a mockery of the democratic institutions that exist across the West.

And that was precisely the effect the EU wanted out of all of this. Because even if they lose the latest Battle of Britain, they win in creating the philosophical case as to why direct representation is a stupid form of government.

The EU is a dream arrangement for globalists. It is an unelected leadership mostly immune from the changes in demographics and voter opinions pushing humanity, a base and unruly lot in their mind, towards their chosen outcomes.

By exposing the divisions and corruption of the world’s oldest parliament the EU is furthering the argument for its inevitability in the minds of the younger generation in Britain, setting older, more experienced Leavers against younger, less worldly Remainers.

But it’s not working as well as they expected. The fear campaign has radicalized the hard-core Remain camp. They were always going to be who they are. What it hasn’t done is soften the middle of the electorate. In fact, if anything, they’ve hardened in their stance that they don’t want to be ruled by either Westminster or Brussels.

Now this is music to my libertarian ears, of course, because it highlights what happens when the costs of the political and economic status quo rise above the benefits of it – anger and rebellion.

We’re seeing it in France. We’ve yet to truly see it in Italy. And we’re only beginning to see it in Britain.

The politicians are trying to do the impossible with an angry electorate – betray their wishes and blame the other guy.

Theresa May, in the words of one of my followers, “is acting like a used-car salesman wearing down a mark.”

But her act has worn thin and so has the bullying act in Brussels. And the same can be said for the multiple levels of betrayal of Jeremy Corbyn and Labour.

As we approach April 12th, May will try her blackmail scheme one more time to satisfy her puppet-masters, this time trying to bring Corbyn into her vortex of failure, while deeper divisions are revealed within the House of Commons and more MPs resign, threaten and whine about the looming catastrophe of ‘extremists.’

The United Kingdom may not survive Brexit in its current form. But many who are pushing for disunion, the Scots, may find themselves surprised when they themselves have to face their voters.

And that would leave the EU wondering what went wrong, as they got everything they wanted – a broken, divided U.K. – and still lost the war.

END

An excellent commentary on the BREXIT situation by Michael Anthony.  He lays out for us how May fell for the Irish backstop and how that is hindering their exit and the will of the people.

He outlines the two outcomes that are now inevitable.

a must read…

(courtesy Michael Antony/Off Guardian.org

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

Iran/USA

Not sure what this means as Iran, itself is a terrorist nation.  Trump has designated Iran’s revolutionary guard a foreign terrorist group. What this means for addition sanctions…is your guess.

(courtesy zerohedge)

Trump To Designate Iran’s Revolutionary Guard A Foreign Terrorist Group

The White House is preparing to designate Iran’s Revolutionary Guard Corps (IRGC) as a foreign terrorist organization, the Wall Street Journal reported late Friday, citing US officials.

This would take Washington and Tehran’s four decade long hostile dealings into uncharted territory, likely paving the way for future war, given as the WSJ points out it “would mark the time that an element of a foreign state has been official designated as a terrorist entity.”

 

Major-General Qassem Soleimani, left, the IRGC Quds force commander.

The IRGC is the elite branch of Iran’s armed services founded upon the 1979 Islamic revolution by order of Ayatollah Khomeini and charged by the constitution with safeguarding internal order, and preventing coup attempts and external plotting.

Its specialized “Quds” force is the foreign arm of the IRGC, often accused by US and Israeli officials of committing espionage and terror attacks abroad. It handles all clandestine and special forces style operations on foreign soil.

According to the report, the Trump administration plans to announce the move as early as Monday, which could be accompanied by an alert going out to all military personnel and foreign service staff abroad warning them of possible retaliation.

However, all of Iranian government entities, including the Guard, are already under unprecedented and aggressive sanctions, so it’s unclear just what impact the White House hopes to make; but it certainly will bring Washington and Tehran into more direct conflict.

It’s also a move designed to instill greater fear and hesitancy in European and international countries still trying to do business with Iran, given the IRGC actually controls a significant segment of the Iranian economy.

White House officials have in the past speculated IRGC could have its hands in up to half of the total economy, something veteran Iran analysts say is hugely overblown.

And crucially, the IRGC being branded a terrorist entity would make it much harder if not near impossible for a future American president to attempt to restore relations with Iran, and would permanently dash any near term or future attempt to renew any semblance of the 2015 nuclear deal.

end

Libya/USA

Oil prices rise as USA forces evacuate Tripoli as fighting in the Libyan capital is heating up

(courtesy zerohedge)

6.GLOBAL ISSUES

the hunt for yield: as these new Canadian bonds are backed by nothing but junk

(courtesy zerohedge)

New Canadian Bonds Are Backed By Junk Rated Retailers And Consumer Loans Charging 40% Interest

In a unique twist on the excesses of the last credit bubble, Canada’s bond market is now issuing bonds backed by increasingly riskier assets, but that hasn’t stopped investors from jumping at the chance to buy them – because why would history ever repeat itself when central bankers are here to make sure there is no more risk, ever?

According to Bloomberg, some popular recent deals have included debt backed by assets like mortgages on junk-rated Hudson’s Bay stores and consumer loans that charge interest rates of up to 40%. There is also new debt being backed by home-equity lines of credit, credit cards, and auto loans/leases. Non-banking mortgage lenders may also soon issue similar debt, according to the report. In fact, the only thing that differentiates the current Canadian bond issuance frenzy from what took place in the US in 2005-2006 is… well… we’ll get back to you on that.

These bonds in Canada are starting to hit the market as Canada’s own bond market inverts with the yield on the 10 year government bond trading below the Bank of Canada’s overnight rate. Consumer spending has been poor and inflation has been weak in the country, however its economy recorded its best monthly advance in growth in eight months in January, and has an unemployment rate of 5.8%, a four decade low, so all must be well…

Randall Malcolm, senior managing director of fixed income at Sun Life Investment Management said: “The flattening of the curve, in which you see the ten year bonds inside the overnight rate is prompting investors to hunt for yield.”

Some of these new issues include C$202 million of securities backed by mortgages on Hudson’s Bay department stores, put together by RBC. The top portion of these bonds were priced to yield 3.64%, which is about 200 basis points over government issued bonds. A smaller Class “B” tranche of bonds were issued at a yield of 4.63%. The borrower of the loans is a joint venture between Hudson’s Bay and RioCan Real Estate Investment Trust. Hudson’s Bay is rated six grades below investment grade and RioCan Real Estate Investment Trust holds S&P global’s second-lowest investment rating. Hudson’s Bay has reported losses 9 out of its last 10 quarters.

At least during the financial crisis, we could blame the ratings agencies for not doing their jobs. This coming crisis we’ll instead have to blame underwriters and bond buyers for ignoring them.

The issue has an “element of concentration which I haven’t seen in a long time,” said Malcolm, referring to the fact that it is Canada’s first-ever commercial MBS pooling of loans from a single entity.

Fairstone Financial also recently issued C$322.4 million in bonds backed by consumer loans with rates as high as 39.99%.The issue has an expected maturity of 2.6 years and offers a 3.94% yield. The punchline: 70% of those loans had FICO scores below 649, which is also better known as subprime. It was the first non-prime asset backed security deal out of Canada since 2007. Back then things did not work out quite as expected.

Fairstone spokeswoman Fiona Story said that interest in the deal was brought on by: “Fairstone’s long history and tenured track record of providing transparent and responsible lending options for a segment of the Canadian market that may experience sudden financial needs, but is not eligible for prime credit.”

Canada also had its first issue of Heloc bonds since October 2017 when Fortified Trust sold C$750 million of notes at 2.56%. Borrowing through Helocs in Canada has grown faster than mortgages since 2017 and represents about 11% of total household debt. 

There have also been five additional issues backed by credit-card debt and two by auto loans and leases. Canadian consumers reduced their average monthly payments on credit cards in February to 38% of outstanding balances – the lowest level since 2015.

Vivek Selot, a credit analyst at RBC, said in a March 27 note: “That deterioration in payment rates may be attributed to
some stress on the consumer. Considering that fragile household balance sheets could be a precipitating factor for the credit cycle to turn, any signs of consumer credit quality deterioration seem worthy of attention.”

Making matters worse, we recently pointed out that low rates had buried Canadian consumers under a mountain of debt, which assures that the adverse impact of the next financial crisis will be substantially magnified. Canadians now collectively owe C$2.16 trillion, which as a share of GDP is the highest debt load in G-7 economies, at just over 100%. At the same time, the housing market is starting to cool in the country and people are “freaking out”, even with rates not far above historical lows, according to Bloomberg.

Due to low rates, the once financially sound country has found itself on a recent borrowing binge. The country’s ratio of debt to disposable income rose to a record 174% in the fourth quarter, from 148% a decade earlier.

And while nobody dares to exit the party just yet, everyone is waiting to see what happens next. The Bank of Canada has raised rates 5 times since 2017, resulting in current rates of 1.75%. Federal rules put into place have curbed speculation in the housing market. Home values are falling for the first time in three decades. In other words, the chickens could soon be coming home to roost.

Individual households are also feeling the pain. For instance, the debt service ratio, which measures how much disposable income goes to principal and interest payments, was up to 14.9 in the forth quarter, nearly matching the 2007 record high.

Meanwhile, in yet another credit red flag, auto loan delinquencies hit 0.97% in the last quarter of 2018, which is the highest number since the aftermath of the 2008 recession. Data is also showing a “pronounced shift” to leasing, as higher rates make it less economical to offer cheap longer term loans. Leases made up 36% of the C$7.85 billion in new auto loans in the fourth quarter, the largest share since before the financial crisis.

end

7  OIL ISSUES

Tom Luongo now believes the Saudis will pivot towards China and the yuan and abandon the uSA dollar. This will be the ultimate blow to the dollar hegemony

(courtesy Tom Luongo)

The Ultimate Pivot: Saudi Betrayal Of The Petrodollar

Authored by Tom Luongo,

Saudi Arabia has gone nuclear, threatening the petrodollar. Or has it?

The report from Zerohedge via Reuters that Saudi Arabia is angry with the U.S. for considering a bill exposing OPEC to U.S. antitrust law is a trial balloon.

The chances of the U.S. bill known as NOPEC coming into force are slim and Saudi Arabia would be unlikely to follow through, but the fact Riyadh is considering such a drastic step is a sign of the kingdom’s annoyance about potential U.S. legal challenges to OPEC.

If these things are so unlikely then why make the threat public? There are a number of reasons.

First, one must remember that the Saudis are hemorrhaging money. Their primary budget deficit in 2018 was around 7% of GDP. Since the 2014 crash in oil prices it has gone from almost zero sovereign debt to $180 billion in debt to finance its spending, or around 22% of GDP.

2019’s budget will be even bigger as it tries to deficit spend its way to growth. It’s needs for a higher oil price are built into their primary budget not their production costs, which are some of the lowest in the world.

Second, the Saudis finally opened up the books on Saudi-Aramco this week. And it revealed the giant is far more profitable than thought. It has is eye on acquiring stakes in some of the biggest oil and gas projects out there these past couple of years. It’s floating its first public bond to buy a stake in SABIC to get into the mid and downstream petroleum markets.

Third, the Saudis budget deficit is tied directly to its having pegged the Riyal to the U.S. dollar which leaves them at the mercy of the dollar price of oil. It doesn’t have the flexibility of Russia who free-floated the ruble back in late 2014 to pay local expenses in devalued local currency when oil prices drop.

This is why the Saudis are struggling financially and why Aramco is looking to use its financial might to finally begin making friends and influencing people around the world.

So, a threat to de-couple Saudi oil sales from the dollar is a threat a long time coming.I’ve been talking about this day since I started this blog and for years previous when I wrote for Newsmax.

The petrodollar still forms the backbone of how the U.S. dollar maintains its reserve currency status. That a vast majority of the oil trade is still settled in dollars creates a synthetic form of demand for U.S. debt, which, in turn, liquefies world trade.

The Saudis need budgetary flexibility to assist Crown Prince Mohammed bin Salman’s Vision 2030 plan to remake the Saudi economy a reality. Deficit spending and gutting the country’s balance sheet is not the path to sustainable prosperity.

But since l’affair Kashoggi last fall relations between the U.S. and Saudi Arabia have been deteriorating. The division between a now-hostile U.S. legislature and a deal-making Trump is intensifying.

Congress is forcing President Trump to veto their bill to end U.S. support for the Saudis war in Yemen, another bin Salman tragedy. At the same time, Saudi Arabia is a key part of Trump’s plans to secure peace for Israel (sold as his Deal of the Century to be unveiled on Israeli Independence Day no less).

So Trump needs the Saudis to stay on board with the plan. But the tensions are rising because the Saudis can see how the political and economic winds are shifting. Trump has been running roughshod over the Saudis, shaking them down for weapon sales while trying to take oil market share from them.

About the only area they agree on anymore is their hatred for Iran, which is driven by Trump’s arch-neocon/Israeli Firster cabinet. The Saudis are in an increasingly untenable position and can’t get any relief from either the U.S. or Russia.

So, the conventional wisdom, expressed by the Saudis, is that the U.S. needs the petrodollar to maintain its position of world power. Trump is trying to do just that not by enforcing compliance on the Saudis but by increasing our domestic exports while restricting supply from marginal producers like Libya, Venezuela, Iraq and Iran.

That would give Trump the leverage he needs to confront China, a massive energy importer. But China is also a major Saudi customer and that’s where this threat gets interesting.

China is the one pushing the Saudis to accept yuan for their oil. De-pegging the riyal is the only way they could do that and still manage their foreign exchange reserves.

At the same time, though, Trump wants a weaker dollar because he needs that to fund his gross fiscal debauchery to spend our grandchildren into debtor’s prison.

He even went so far as to instruct the Fed to stop QT, drop rates and even do more QE because the ‘economy is so strong.’ He’s become a cartoon of himself at this point. He needs the Fed to end QT so he can sell more than a trillion of new debt at low rates into the market to fund his insane budget.

And this lends credence to the theory that Trump is actually trying to end the dollar’s reserve currency status. But, like I just said, if he were interested in that he wouldn’t be running the biggest deficit in the country’s history, he would be cutting spending overall.

The situation is beyond complicated but it boils down to the simplest of things. That which is unsustainable will end. The petrodollar is one of those things. It will be torn apart by Saudi spending needs, China’s willingness to buy oil from everyone else, including the U.S., and the waning U.S. influence in the Middle East.

If not today or next week, than in the near future. The question is whether the U.S. is prepared for it or not. Right now the dollar is king. A decade of ZIRP has created a massive synthetic short position in the dollar in the form of emerging market corporate and real estate debt.

But after that? And after that synthetic short pushes the dollar much higher and the price of oil into the floor? That’s when things get truly interesting. For now, the Saudis are making noise. With oil trading in the $60s no one is losing too much money or market share too quickly.

And so the status quo will prevail, for now.

end

8. EMERGING MARKETS

VENEZUELA

This does not look good; Pompeo warns NATO that they must confront the “emerging threats” coming from Russia and Chin in Venezuela.

(courtesy zerohedge)

Pompeo: NATO Must Confront “Emerging Threats” From Russia And China In Venezuela

On Thursday US Secretary of State Mike Pompeo urged NATO leaders to confront the “emerging threats” posed by the Russian and Chinese militaries across the globe, but especially in Venezuela.

“We must adapt our alliance to confront emerging threats… whether that’s Russian aggression, uncontrolled migration, cyberattacks, threats to energy security, Chinese strategic competition, including technology and 5G, and many other issues,” Pompeo said. Though he more specifically linked Russia with the Venezuela crisis in comments to reporters, China remained a talking point as part of the discussion throughout.

 

NATO Secretary General Jens Stoltenberg with Secretary of State Mike Pompeo in Washington on Wednesday, April 3, 2019. Image source: AP

Pompeo addressed a meeting of NATO foreign ministers in Washington marking the transatlantic military alliance’s 70th anniversary. He raised the issue of Venezuela in response to a question over Moscow’s alleged increase in military activity in places like the Black sea, where three Ukrainian naval vessels and their crew were seized in the Kerch Strait last November.

According to remarks made after the meeting to reporters, Reuters noted, “Pompeo said NATO members had agreed Russian troops needed to withdraw from Venezuela, where they were deployed in support of President Nicolas Maduro, who is under pressure from a coalition of more than 50 countries, including the United States, to step down.”

Also according to the report, Venezuela’s deputy foreign minister, Ivan Gil, shot back on Thursday saying Russian forces will stay in Venezuela “as long as needed and did not rule out the possibility more could be added.”

This echoes prior Russian foreign ministry statements on the recent deployment of some 100 Russian troops led by a general. Russia described its forces in Venezuela as “specialists” who are servicing existing contracts related to defense procurement, and which is perfectly legal according to prior agreements between two sovereign countries.

Further as part of the conference NATO chief Jens Stoltenberg called on Moscow to release the Ukrainian vessels and their crews which had been held since the Nov. 25 Kerch Strait incident.

Stoltenberg’s words suggest things could grow hot again in the Black Sea and Caucuses, as NATO is prepared to given more support to regional allies there. According to Reuters:

He said the NATO allies had agreed on a package of measures to step up support for Ukraine and Georgia that included increased surveillance drills and “training of maritime forces and coast guards, port visits and exercises, and sharing information.” Ukraine and Georgia, which like Ukraine is a Russian neighbor and part of the former Soviet Union, are not NATO members.

As for China, officials in Beijing this week firmly rejected reports that the Chinese military had entered Venezuela on a humanitarian aid mission.

“I don’t know where you got this information or for what purpose was it produced, but I can tell you this: what you said is simply not true,” said Foreign Ministry spokesman Geng Shuang on Tuesday.

“The Chinese government’s position on the Venezuela issue is consistent and clear-cut,” Shuang added, noting that China opposes “external interference in Venezuela’s internal affairs, and believe the country’s government and opposition need to seek a political solution through peaceful dialogue.”

Last week the White House had warned all foreign troops and countries “external to the Western Hemisphere” to keep their forces out of Venezuela.

 

end

Pictures of the state of affairs inside Venezuela today

(courtesy zero hedge)

Stunning Photos Reveal “Zombie Apocalypse” Conditions As Caracas “Empties Under Darkness”

New reports by the Associated Press and Human Rights Watch paint a grim and increasingly desperate picture of life inside Venezuela’s populous capital city, especially when the sun goes down and entire neighborhoods become “no-go” zones.

A series of AP photographs entitled As the sun sets, Venezuela’s capital empties presents Caracas as essentially becoming a ghost town after sunset, and depict infrastructure collapse and lack of services like electricity, water, and public transport to the point that eerie scenes of the empty streets and stores feel like a zombie apocalypse has hit.

 

Venezuelan capital of Caracas, AP photo

When dusk turns to night, the AP reports, “the once-thriving metropolis empties under darkness” after recently “a string of devastating nationwide blackouts last month dramatized the decay.”

Horrifyingly for common Venezuelans, years of mismanagement under the Maduro government and externally imposed isolation along with biting US sanctions have further sent Venezuela’s health care system into “utter collapse,” a new Human Rights Watch (HRW) report also finds.

The population of has witnessed a rapid resurgence of preventable deadly diseases.

 

AP: “When the sun goes down in Venezuela’s capital, the once-thriving metropolis empties under darkness.”

This has resulted in the return of rare diseases once thought almost completely eradicated. Commenting on the latest HRW report, which urges the United Nations to declare the Venezuela crisis a complex humanitarian emergency, The Washington Post summarizes:

The new report paints an extremely grim picture of life in Venezuela, whose once-prosperous economy has imploded because of mismanagement and corruption under Maduro, who has been president since the 2013 death of revolutionary leader Hugo Chávez. Oil exports have fallen by more than half.

In addition to widespread malnutrition and sharply increased levels of maternal and infant mortality, more than 9,300 cases of measles have been reported since June 2017, compared to a single case recorded between 2008 and 2015.

For example, “Venezuela did not experience a single case of diphtheria between 2006 and 2015,” the HRW report finds, “but more than 2,500 suspected cases have been reported since July 2016.”

 

Image source: AP

With near constant electricity shortages and sometime complete mass outages, once popular shops in upscale Caracas neighborhoods have struggled to stay open at all.

The AP describes of the below photo, “An ice-cream shop sits empty in the La Mercedes neighborhood of Caracas, Venezuela, early evening Tuesday, March 19, 2019.”

And the report adds, “Often just a single business along a city block is able to stay open in Caracas, awaiting sparse customers.”

Especially high crime areas of Caracas go completely vacant at night, essentially becoming “no go” zones as they were already unsafe even before a spate of recent blackouts meant lower visibility and lack of police and security.

US officials have repeatedly blamed President Nicolas Maduro for overseeing a socialist system of vast corruption; however, Caracas officials have blamed a decade of US sanctions for exacerbating the suffering of ordinary citizens.

 

Image source: AP

Once billboard-lined busy highways over the past weeks appear increasingly empty, especially near dusk. Now billboard spaces are most often empty.

Venezuelans have also had to traverse long distances on foot to get to work, or complete simple tasks like retrieving food and supplies, with previously reliable public transport functioning less if at all in many neighborhoods.

 

Image source: AP

Via the AP: “Billboards often have nothing to promote, their skeletal framework bare long after the wind has ripped away old advertising.”

Other recent reports have described a return to the Middle Ages across many parts of the Latin American country, with descriptions of rotting and souring food on supermarket shelves, citizens making oil lamps, and Caracas residents washing dishes in nearby El Avila mountain streams due to lack of electricity to the city’s water pumps.

The issue of water access has become dire, though the Red Cross has this month begun delivering emergency aid, allowed into the country for the first time since the now months long political crisis following Maduro’s reelection began.

 

Image source: AP

The AP describes a local street side economy of “impromptu shops” moving out of darkened stores and buildings:

Used shoes for sale are displayed on the sidewalk of a graffiti-filled street in Caracas, Venezuela, early Monday, March 25, 2019. Residents desperate for cash transform patches of sidewalk into their impromptu shops, laying out old items as merchandise.

Terrible conditions akin to a scene out of the classic zombie apocalypse film 28 Days Later are described:

As dusk falls, many storefronts are just graffiti-scrawled security doors chained shut. Often just a single business along a city block is able to stay open, awaiting sparse customers. Others close earlier, like a beauty salon, its few remaining clients forced to decide between the simple luxury of haircut or buying food.

Caracas’ La Mercedes neighborhood, famous for its upscale shopping and nightlife, hasn’t been spared. Many of its pubs and fancy restaurants are devoid of waiters and customers. A shopping mall keeps it lights on, but the doors lock hours earlier than they did before, when they teemed with life.

 

Darkened streets of Caracas on March 21, via the AP. 

And further, even high-rises appear abandoned once the sun goes down each night:

High-rise buildings stand unfinished, the workers having long ago abandoned their jobs. Windows are covered over with cardboard rather than finished with glass.

Residents desperate for cash transform patches of sidewalk into their impromptu shops, laying out old shoes or second-hand shirts as merchandise.

The poor and hungry scour through household trash, scattering it across street corners before it’s collected, grabbing anything they can use or eat.

A number of Venezuelan skyscrapers have long sat half-finished and abandoned. Over the past decade squatters have increasingly filled them.

Sadly, Venezuelans’ misery will likely continue with no end in sight, especially given that Washington continues to talk heightened sanctions and war, with the “all options on the table” mantra repeated each week in support of anti-Maduro opposition leader Juan Guaido.

Simultaneously, the Maduro regime appears to be hunkered down for a long period of economic war and isolation, which will only make corruption thrive as a means of survival. Little is expected to change.

end

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

Euro/USA 1.1246 UP .0034 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES MIXED

 

 

USA/JAPAN YEN 111.45  DOWN .234 (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 1.3053    UP   0.0030  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED

USA/CAN 1.3370 DOWN .0006 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS MONDAY morning in Europe, the Euro ROSE by 6 basis points, trading now ABOVE the important 1.08 level  RISING to 1.1229 Last night Shanghai COMPOSITE CLOSED DOWN 1.76 POINTS SOR .05%.

 

 

 

 

//Hang Sang CLOSED UP 140.83 POINTS OR .47%

 

 

/AUSTRALIA CLOSED UP 0.64%// EUROPEAN BOURSES MIXED  

 

 

 

 

 

 

 

 

The NIKKEI: this MONDAY morning CLOSED DOWN 45.65 POINTS OR 0.21%  

 

 

 

 

 

 

 

 

 

Trading from Europe and Asia

1/EUROPE OPENED MIXED

 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 140.83 POINTS OR .47%

 

 

 

 

/SHANGHAI CLOSED DOWN 1.76 POINTS OR .05%

 

 

 

 

 

 

 

Australia BOURSE CLOSED UP 0.64%

 

Nikkei (Japan) CLOSED DOWN 45.65 POINTS OR 0.21% 

 

 

 

 

 

 

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1297.60

silver:$15.16

Early MONDAY morning USA 10 year bond yield: 2.50% !!! DOWN 0 IN POINTS from FRIDAY’S night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.91 UP 1  IN BASIS POINTS from FRIDAY night.

USA dollar index early WEDNESDAY morning: 97.19 DOWN 20 CENT(S) from  FRIDAY’s close.

This ends early morning numbers MONDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

And now your closing  MONDAY NUMBERS \12: 00 PM

 

Portuguese 10 year bond yield: 1.22%  DOWN 4  in basis point(s) yield from FRIDAY/

JAPANESE BOND YIELD: -.05%  DOWN 2   BASIS POINTS from FRIDAY/JAPAN losing control of its yield curve/

 

 

SPANISH 10 YR BOND YIELD: 1.09% DOWN 2   IN basis point yield from FRIDAY

ITALIAN 10 YR BOND YIELD: 2.48 DOWN 0    POINTS in basis point yield from FRIDAY/

 

 

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

GERMAN 10 YR BOND YIELD: FALLS  TO +.00%   IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.48% 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 C44RENCY CLOSES FOR MONDAY

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

Euro/USA 1.1262 UP    .0050 or  50 basis points

 

 

USA/Japan: 111.48 UP 0.214 OR YEN UP 22 basis points/

Great Britain/USA 1.3037 UP .0014 POUND UP 14  BASIS POINTS)

Canadian dollar UP 56 basis points to 1.3319

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY closed AT 6.7164    0N SHORE  (DOWN)

THE USA/YUAN OFFSHORE:  6.7188  (YUAN DOWN)

TURKISH LIRA:  5.6974

the 10 yr Japanese bond yield closed at -.05%

 

 

 

Your closing 10 yr USA bond yield UP 1 IN basis points from FRIDAY at 2.51 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2,92 UP 1 in basis points on the day /

 

Your closing USA dollar index, 97.08 DOWN 31 CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED UP 5.02  0.07%

German Dax : DOWN 45.35 POINTS OR 0.39%

Paris Cac CLOSED DOWN 4.42 POINTS OR  0.08%

Spain IBEX CLOSED DOWN 72.60 POINTS OR  0.76%

Italian MIB: CLOSED UP 13.35 POINTS OR 0.06%

 

 

 

 

WTI Oil price; 64.06 1:00 pm;

Brent Oil: 70.92 12:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    65.05  THE CROSS LOWER BY 0.46 ROUBLES/DOLLAR (ROUBLE HIGHER BY 46 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO +.00 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 :  64.39

 

 

BRENT :  71.07

USA 10 YR BOND YIELD: … 2.52… STILL DEADLY//

 

 

 

 

 

 

 

 

USA 30 YR BOND YIELD: 2.93..STILL DEADLY

 

 

 

 

EURO/USA DOLLAR CROSS:  1.1263 ( UP 51   BASIS POINTS)

USA/JAPANESE YEN:111.51 DOWN .185 (YEN UP 19 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.04 DOWN 35 cent(s)/

The British pound at 4 pm: Great Britain Pound/USA:1.3067 UP 44 POINTS

 

the Turkish lira close: 5.6904

the Russian rouble 64.91   UP .61 Roubles against the uSA dollar.( UP 61 BASIS POINTS)

Canadian dollar:  1.3387  UP 67 BASIS pts

USA/CHINESE YUAN (CNY) :  6.7164  (ONSHORE)/

 

USA/CHINESE YUAN(CNH): 6.7173 (OFFSHORE)

German 10 yr bond yield at 5 pm: ,+0.00%

 

The Dow closed down 83.97 POINTS OR 0.32%

 

NASDAQ closed UP 15.19 POINTS OR 0.19%

 


VOLATILITY INDEX:  13.18 CLOSED up .36 

 

LIBOR 3 MONTH DURATION: 2.592%//

 

 

 

FROM 2.588

 

 

 

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

Boeing Busts Dow Win Streak As Bitcoin, Bond Yields, Bullion & Big Tech Rise

Who’s buying?

 

 

Early strength in China gave way to an ugly day for small cap tech after Friday’s market vacation…

 

Spanish stocks lagged along with Germany’s DAX as UK, Italy, and France ended unchanged…

 

 

US Small Caps (Russell 2000) and Mega Caps (Dow Industrials) underperformed today as tech lifted Nasdaq and S&P…

 

 

AAPL bagged $200.00 for the first time since early November…

 

Dow was weak due to Boeing (accounting for more than the entire point loss of the index)…

 

GE also tumbled…

 

The S&P 500 Information Technology Sector reached a new record high today (taking out the Oct 3rd highs)…

 

Treasury yields rose modestly on the day but failed to erase Friday’s post-payroll yield drop (almost note huge Aramaco deal likely weighed on TSY complex sentiment)…

 

10Y holds above 2.50%…

 

The dollar extended its dump from 120 (Bloomberg Dollar Index)

 

Bitcoin and Ethereum extended recent gains as Bitcoin Cash held the big surge…

 

Bitcoin tagged $5350 intraday before fading…

 

WTI just won’t stop, but the dollar weakness spurred gains across commodity-ville today…

 

Gold gained modestly, with front-month futures back above $1300…

 

And WTI topped $64 on its way to $65 and the Fib 61.8% retracement… (Libya crisis, sanctions against Iran, Venz)

 

Finally, since October 3rd – the last time the S&P 500 was here – earnings expectations and macro-economic data have collapsed…

Is it time for a recoupling?

David Rosenberg@EconguyRosie

The front cover of Barron’s. How perfect. The makings of a market top.

 

end

MARKET TRADING/ LATE MORNING TRADING

 

end

ii)Market data/

Hard data, factory orders slumped badly in February.  We continue to witness hard data reports showing a declining uSA and for that matter, a global economic decline

(courtesy zerohedge)

US Factory Orders Slumped In February As Stocks Soared

US factory orders have been flat to weak for six straight months now…

Factory orders fell 0.5% MoM in February and were revised lower to unchanged in January.

Decoupling from the US equity market’s push for new record highs…

But then again, when did fun-durr-mentals matter?

END

 

iii)USA ECONOMIC/GENERAL STORIES

Rosenberg is going full bear as he states that the Fed will embrace helicopter money in the next few years.

I think it will be this year..

(courtesy Rosenberg/zerohedge)

Uninsured farmers in the Mid -West are facing an existential crisis as the floods destroyed hundred’s of million dollars in crops that were stored in bins. The water came in so fast that the farmers had no time to protect their stored crops….. It is the worst economic disaster for USA framers in USA history
(courtesy Michael Snyder)

Uninsured Farmers Face Existential Crisis As Floods Destroy 100s Of Millions Of Dollars In Crops

Authored by Michael Snyder via The End of The American Dream blog,

This is the worst economic disaster for U.S. farmers in modern American history. 

Our ongoing trade war with China had greatly depressed prices for wheat, corn and soybeans, and so farmers were storing more crops on their farms than ever before in early 2019.  And then the floods came.  The water moved so fast that the vast majority of the farmers in the affected areas could not have moved what they had stored even if they wanted to, and the scale of the losses that these farmers have suffered is starting to become clearer.

According to UPI, “hundreds of millions of dollars in crops” that were destroyed by the flooding were not covered by insurance…

Hundreds of millions of dollars in crops destroyed in Midwestern floods this month were not insured, farmers say. And the losses could leave many without sufficient income to continue farming.

“This uninsured grain issue is really starting to affect people,” said Jeff Jorgenson, a western Iowa corn and soy grower whose farm flooded when the Missouri River spilled over its banks March 12.

Without an extraordinary amount of assistance, there are thousands of farmers that will never be able to come back from this.

One fifth-generation farmer that was interviewed by Fox News said that about 7 million dollars worth of grain was destroyed in his county alone…

Dustin Sheldon, a fifth-generation grain and soybean farmer, watched in horror as the floods that devastated the Midwest began to recede and he could assess the damage to his crops.

He said the record-breaking floods caused about $1 million in losses for his family farm.

“We figured that there is roughly $7 million worth of grain sitting in these grain bins here just in our county alone that is either destroyed or inaccessible right now that we won’t even be able to get to or sell,”he said. “Financially, there’s a lot of farmers that can’t come back from that and they may be out of business.”

According to government regulations, when stored crops get flooded they must be destroyed.

And unfortunately, the government also doesn’t have any sort of a program to cover those losses.  In fact, USDA Under Secretary Bill Northey told Reuters that “there’s nothing the U.S. government can do to help”

Hundreds of farmers may be out of luck trying to recuperate losses after last month’s historic floods in the Midwest. Millions of bushels of grains were destroyed in more than 800 on-farm storage bins – mostly in eastern Nebraska and western Iowa – and U.S. Department of Agriculture (USDA) Under Secretary Bill Northey recently told Reuters that, under current laws and disaster aid programs, there’s nothing the U.S. government can do to help.

Of course Congress could pass a law to change all that, but right now that is not happening and it does not appear likely to happen.

This is yet another example that shows who we send to Congress really matters.  If I had won my race for Congress, I would be endlessly causing havoc until our farmers got the emergency assistance that they desperately need.

Because as it stands, thousands of farmers that have been financially ruined by this flooding are going to be forced out of the profession forever.

For 71-year-old farmer Bruce Biermann, it looks like the end has come after the floodwaters destroyed more than $100,000 worth of his stored crops…

The two grain bins on Bruce Biermann’s farm near Corning, Missouri, could not withstand the strong currents of the Missouri River.

With four feet of water pressing from the outside and grain swelling from moisture inside, the bins burst.

At 71, Biermann is looking at more than a $100,000 loss.

Because of the trade war, he had been storing 12,000 bushels of corn and 8,200 bushels of soybeans until prices went up again.

Now all of that hard work has been washed away, and no help is on the horizon.

33-year-old farmer Travis Green has a similar story

Travis Green, 33, who operates farms in both Kansas and Nebraska, stored 25,000 bushels of yellow corn in a pair of grain bins in White Cloud, Kansas, near the Missouri River.

One of the bins “literally just blasted open,” after it filled with floodwater and the other was uprooted— destroying an estimated $100,000 worth of corn. On top of that, he’s unsure whether he’ll be able to plant anything this year because of the water damage.

Even before the floods came, U.S. farm incomes had already sunk to a 12 year low.  America’s farmers need our help more than ever, and yet Congress has chosen to abandon them.

Overall, AccuWeather is now estimating that the total amount of economic damage from all of this flooding will reach 12.5 billion dollars…

AccuWeather estimates the total damage and economic loss caused by record-breaking flooding in the Midwestern U.S. this spring will total $12.5 billion, based on an analysis of damages already inflicted and those expected by additional flooding, as well as the lingering health effects resulting from flooding and the disease caused by standing water.

Personally, I think that number is too low, but we will see.

And remember, a lot more flooding is still on the way.  Just check out what one expert is saying

“We’re not done. There is what amounts to a wall of water that will cross the state of Missouri, by way of the Missouri River, and meet a rapidly rising Mississippi River,” Dr. Hurburgh says.

The snow in Wisconsin and Minnesota is melting this week, and flooding is expected in northern Illinois and southern Wisconsin. That’s all going to end up in the Mississippi River, at a point, he says.

In addition, a lot more rainfall is coming too.  In fact, powerful storms are set to dump up to 6 inches of rain across the southern portion of the country through Monday night

In addition, the prolonged period of wet, stormy weather will only exacerbate and worsen the ongoing flooding issues on the Mississippi River and its tributaries.

Through Monday night, the highest rainfall totals of 3 to 6 inches are forecast to extend from eastern Texas and western Louisiana into southeastern Arkansas, northern Mississippi and western parts of the Tennessee Valley.

Overall, at least a million acres of U.S. farmland were covered by water by the recent floods.  It is a disaster that we will be talking about for a very long time to come.

Unfortunately, time is not on the side of the thousands of farmers that have been financially ruined by this great tragedy.

Congress needs to act, and they need to do so quickly.

SWAMP STORIES

How the Russian hoax came to be;

a must read..

Devin Nunes via Washington Examiner)

Nunes: The Russian Collusion Hoax Meets An Unbelievable End

Authored by Rep. Devin Nunes, op-ed via The Washington Examiner,

As the Russia collusion hoax hurtles toward its demise, it’s important to consider how this destructive information operation rampaged through vital American institutions for more than two years, and what can be done to stop such a damaging episode from recurring.

While the hoax was fueled by a wide array of false accusations, misleading leaks of ostensibly classified information, and bad-faith investigative actions by government officials, one vital element was indispensable to the overall operation: the Steele dossier.

Funded by the Hillary Clinton campaign and the Democrat National Committee, which hid their payments from disclosure by funneling them through the law firm Perkins Coie, the dossier was a collection of false and often absurd accusations of collusion between Trump associates and Russian officials. These allegations, which relied heavily on Russian sources cultivated by Christopher Steele, were spoon-fed to Trump opponents in the U.S. government, including officials in law enforcement and intelligence.

The efforts to feed the dossier’s allegations into top levels of the U.S. government, particularly intelligence agencies, were championed by Steele, Fusion GPS co-founder Glenn Simpson, and various intermediaries. These allegations were given directly to the FBI and Justice Department, while similar allegations were fed into the State Department by long-time Clinton aide Sidney Blumenthal.

Their efforts were remarkably effective. Officials within the FBI and DOJ, whether knowingly or unintentionally, provided essential support to the hoax conspirators, bypassing normal procedures and steering the information away from those who would view it critically. The dossier soon metastasized within the government, was cloaked in secrecy, and evaded serious scrutiny.

High-ranking officials such as then-FBI general counsel James Baker and then-Associate Deputy Attorney General Bruce Ohr were among those whose actions advanced the hoax. Ohr, one of the most senior officials within the DOJ, took the unprecedented step of providing to Steele a back door into the FBI investigation. This enabled the former British spy to continue to feed information to investigators, even though he had been terminated by the FBI for leaking to the press and was no longer a valid source. Even worse, Ohr directly briefed Andrew Weissmann and Zainab Ahmad, two DOJ officials who were later assigned to special counsel Robert Mueller’s investigation. In short, the investigation was marked by glaring irregularities that would normally be deemed intolerable.

According to Ohr’s congressional testimony, he told top-level FBI officials as early as August or September 2016 that Steele was biased against Trump, that Steele’s work was connected to the Clinton campaign, and that Steele’s material was of questionable reliability. Steele himself confirmed that last point in a British court case in which he acknowledged his allegations included unverified information. Yet even after this revelation, intelligence leaders continued to cite the Steele dossier in applications to renew the Foreign Intelligence Surveillance Act warrant on former Trump campaign adviser Carter Page.

It is astonishing that intelligence leaders did not immediately recognize they were being manipulated in an information operation or understand the danger that the dossier could contain deliberate disinformation from Steele’s Russian sources. In fact, it is impossible to believe in light of everything we now know about the FBI’s conduct of this investigation, including the astounding level of anti-Trump animus shown by high-level FBI figures like Peter Strzok and Lisa Page, as well as the inspector general’s discovery of a shocking number of leaks by FBI officials.

It’s now clear that top intelligence officials were perfectly well aware of the dubiousness of the dossier, but they embraced it anyway because it justified actions they wanted to take – turning the full force of our intelligence agencies first against a political candidate and then against a sitting president.

The hoax itself was a gift to our nation’s adversaries, most notably Russia. The abuse of intelligence for political purposes is insidious in any democracy. It undermines trust in democratic institutions, and it damages the reputation of the brave men and women who are working to keep us safe. This unethical conduct has had major repercussions on America’s body politic, creating a yearslong political crisis whose full effects remain to be seen.

Having extensively investigated this abuse, House Intelligence Committee Republicans will soon be submitting criminal referrals on numerous individuals involved in these matters.

These people must be held to account to prevent similar abuses from occurring in the future. The men and women of our intelligence community perform an essential service defending American national security, and their ability to carry out their mission cannot be compromised by biased actors who seek to transform the intelligence agencies into weapons of political warfare.

 

END

 

The witch hunt on Trump continues as the Democrats are now demanding his tax returns.

(courtesy zerohedge)

Trump On Tax Returns: Law “100 Percent On My Side” 

President Trump on Friday said that the law is “100 percent” on his side in an longstanding battle with Democrats over his tax returns.

Trump, who has agreed to “absolutely” release his returns once they are no longer under IRS audit, told reporters “Hey, I’m under audit. But that’s up to whoever it is. From what I understand the law is 100 percent on my side.”

Embedded video

The Hill

@thehill

President Trump: “From what I understand, the law is 100% on my side” in battle with Democrats over release of tax returns. http://hill.cm/5VVtPYY

That’s not good enough for Congressional Democrats

Wednesday evening Ways and Means Committee Chairman Richard Neal (D-MA) said Wednesday evening that he had filed a formal request with the Treasury to obtain six years’ worth of the president’s tax returns, putting Treasury Secretary Steven Mnuchin in the hot seat.

[The] request tests Mnuchin’s oath of office: whether Mnuchin will faithfully execute the laws of the United States, or whether Mnuchin will bend to the will of the president,” said Steve Rosenthal, a senior fellow at the Urban-Brookings Tax Policy Center who testified before Congress in February about Trump’s tax returns.

When asked on Thursday if he would instruct the IRS to withhold his returns, Trump said “They’ll speak to my lawyers and they’ll speak to the attorney general.”

The IRS has stated that audits don’t preclude people from releasing their own tax information, while House Democrats are attempting to use a provision in the federal tax code which allows the chairmen of Congressional tax committees to ask for tax returns for examination in a closed session.

The law says that the Treasury secretary “shall furnish” the documents for nonpublic examination – a virtually useless requirement given Capitol Hill’s pervasive leaks.

Pushback

Several Key Republicans stand opposed to Neal’s request, including Rep. Kevin Brady of Texas and Sen. Chuck Grassley of Iowa.

Weaponizing our nation’s tax code by targeting political foes sets a dangerous precedent and weakens Americans’ privacy rights,” wrote Brady in a Wednesday letter to Mnuchin. “As you know, by law all Americans have a fundamental right to the privacy of the personal information found in their tax returns.

Key Republicans are critical of the request. The top Republican on the Ways and Means Committee, Rep. Kevin Brady (R-Texas), argued in a letter to Mnuchin Wednesday that the request is “an abuse of the tax-writing committees’ statutory authority,” and he said it weakens Americans’ right to have their personal information kept private.

Senate Finance Committee Chairman Chuck Grassley (R-Iowa) said Thursday that courts have ruled that congressional requests for information need to have legitimate legislative purposes, and Democrats have fallen short on that front.

“They don’t have a purpose,” he said. “All they have are a lot of excuses.” –The Hill

Senator Lindsey Graham, on the other hand, suggested that all 2020 candidates should be required to release their tax returns.

Embedded video

ABC News

@ABC

Sen. Lindsey Graham: “I think you should release your tax returns, if you’re running for president in 2020.”

Lawmakers split as they respond to Pres. Trump’s claims that an audit is keeping him from releasing his tax returns. https://abcn.ws/2UirKVq

During a March Ways and Means Committee hearing, Mnuchin said that the Treasury Department would “follow the law and we will protect the president as we would protect any individual taxpayer under their rights.”

END
Mulvaney:  the Democrats will never see Trump’s tax returns
(courtesy zerohedge)

Mulvaney: Democrats Will ‘Never’ See Trump Tax Returns

Acting White House chief of staff Mick Mulvaney said on Fox News Sunday that Democrats will “never” see President Trump’s tax returns.

Nor should they. That’s an issue that was already litigated during the election. Voters knew the president could have given his tax returns. They knew that he didn’t and they elected him anyway,” said Mulvaney, adding that Democrats “know they’re not going to” get the tax returns.”

“They just want attention on the issue because they don’t want to talk to us about policy.

Embedded video

FoxNewsSunday

@FoxNewsSunday

MIck Mulvaney says that the democrats will never see President Trump’s taxes and that they know they won’t

On Wednesday evening,Ways and Means Committee Chairman Richard Neal (D-MA) said that he had filed a formal request with the Treasury, asking IRS Commissioner Charles Rettig to turn over six years’ worth of the president’s tax returns, putting Rettig’s boss – Treasury Secretary Steven Mnuchin, in the hot seat.

On Friday, President Trump said that the law is “100 percent” on his side over his decision not to release his returns while he’s under IRS audit.

“Hey, I’m under audit. But that’s up to whoever it is. From what I understand the law is 100 percent on my side.”

Embedded video

The Hill

@thehill

President Trump: “From what I understand, the law is 100% on my side” in battle with Democrats over release of tax returns. http://hill.cm/5VVtPYY

Speaking of Democrats who have “no interest in working with this President,” Mulvaney also told Fox News that the Democrat party is “infested” with what we call “Trump Derangement Syndrome,” adding “they still can’t accept that he won the election.

Embedded video

FoxNewsSunday

@FoxNewsSunday

Mick Mulvaney tells @billhemmer that the democrats will never stop investigating the President

Mueller report

Mulvaney said that Democrats were “caught flat footed” by the Mueller report’s conclusion of no collusion with Russia. “They really did believe that Mueller would find collusion and find obstruction, in fact they had invested very heavily in that.”

Embedded video

FoxNewsSunday

@FoxNewsSunday

Mick Mulvaney tells @billhemmer that the democrats really didn’t see the Mueller report concluding with no collusion

Border crisis

When asked what the plan was to get out of the current border crisis, Mulvaney said that Mexico has to do more to prevent immigrants from entering Mexico, and that they need to accept people that the United States sends back over the border. The acting CoS also said that Congress “must act,” adding that “the laws are what’s acting as this giant magnet for these illegal immigrants, and Congress has to change those laws.”

Embedded video

FoxNewsSunday

@FoxNewsSunday

Mick Mulvaney tells @billhemmer there are 3 things that really need to happen to end the border crisis

Embedded video

FoxNewsSunday

@FoxNewsSunday

Mick Mulvaney tells @billhemmer that more people are starting to realize there is a crisis at the border

end
Trump at war with California with respect to the national emergency at the border
(courtesy zero hedge)

“We Can’t Take You Anymore”: Trump Says US Is “Full” During Border Speech

Hours after California and 19 other states filed a lawsuit to try and stop President Trump from appropriating funds for his border wall via his national emergency declaration, President Trump flew to Calexico for a press conference with immigration agents and border patrol officials that was tantamount to flipping a giant middle finger to the state’s recently inaugurated, rapidly anti-Trump governor, Gavin Newsom. Not to mention California Attorney General Xavier Becerra, who has repeatedly challenged the Trump administration on immigration-related issues.

Bolstered by a flurry of news stories about the rapidly deteriorating situation at the border, which is being exacerbated by an unprecedented surge in the number of asylum seekers from Central America, Trump declared that at least 400 miles of his promised wall would be built over the next two years, and blamed Democrats for the slow progress so far. Trump has been pushing Congress to tighten asylum rules, to make it harder for migrants to qualify.

Trump

Notably, his visit came a day after he withdrew his nominee to lead ICE, the longtime border official Ron Vitiello, who had appeared to be on track for confirmation until Trump decided he wanted to go in a “tougher direction.”

He also repeated his explanation for backing off his threat to close the border, saying that Mexico has been cracking down on migrants traveling through its territory, and reiterated his threat to tariff auto parts and close the border if significant progress hasn’t been made in a year, according to the Associated Press.

During the press conference, Trump shared a message to migrants that he described as “our new statement,” and warned anyone traveling to the US – whether it’s to declare asylum, or enter illegally – to instead “turn around.”

“This is our new statement- the system is full. We can’t take you anymore. Whether it’s asylum or anything you want – illegal immigration – we can’t take you anymore. Our country is full. Our area is full. The sector is full. Can’t take you anymore, I’m sorry. Turn around.”

During the meeting, Trump was presented with a piece of the future border wall.

Unsurprisingly, the president’s visit triggered Gov. Newsom to condemn the president’s efforts to shut down immigration,.

“Since our founding, this country has been a place of refuge – a safe haven for people fleeing tyranny, oppression and violence. His words show a total disregard of the Constitution, our justice system, and what it means to be an American,” said Democratic Gov. Gavin Newsom.

Watch a clip from his speech below:

Embedded video

Aaron Rupar

@atrupar

TRUMP: “This is our new statement- the system is full. We can’t take you anymore. Whether it’s asylum or anything you want – illegal immigration – we can’t take you anymore. Our country is full. Our area is full. The sector is full. Can’t take you anymore, I’m sorry. Turn around”

end
John Solomon on Sunday pointed out that the Ukrainians were meddling in the 2016 election.  And they were interfering for Hillary Clinton.
(courtesy Sara Carter)

Were The Ukrainians Meddling In The 2016 Election, Too? For Hillary Clinton!

Via SaraCarter.com,

John Solomon published another blockbuster investigation Sunday on possible alleged interference in the 2016 election involving Ukraine.

Ukrainian sources told Solomon that the  Trump Justice Department has allegedly not followed up on evidence given to the department by Ukrainian law enforcement officials.

Those Ukrainian officials said they have evidence showing that American Democrats, along with allies in Kiev,  sought to interfere in the 2016 U.S. elections and obstruct ongoing criminal probes.

Solomon interviewed Kostiantyn Kulyk, deputy head of the Prosecutor General’s International Legal Cooperation Department. He told The Hill that he, along with other senior law enforcement officials, have tried since last year to get visas from the U.S. Embassy “in Kiev to deliver their evidence to Washington.”

Kulyk told Solomon, we were supposed to share this information during a working trip to the United States. However, the (U.S.) ambassador blocked us from obtaining a visa. She didn’t explicitly deny our visa, but also didn’t give it to us.”

According to Solomon’s interview with Kulyk,

Ukrainian businessmen “authorized payments for lobbying efforts directed at the U.S. government. In addition, these payments were made from funds that were acquired during the money-laundering operation. We have information that a U.S. company was involved in these payments.”

Kulyk said the company is tied to one or more prominent Democrats, Ukrainian officials insist, as reported by The Hill.

end

To read more on this in-depth investigation go to The Hill…

END

Doug Collins, the ranking Republican on the House Judiciary committee shreds Nadler to pieces for bullying Mueller. He orders that it should be Mueller who is to testify immediately

(courtesy zerohedge)

Top House Republican Shreds Nadler For Bullying Barr; Wants Mueller To Testify “Immediately”

Rep. Doug Collins, the top Republican on the Democrat-controlled House Judiciary Committee, wrote a scathing letter to the panel’s chairman, Rep. Jerry Nadler (D-NY) accusing him of putting Attorney General William Barr in an “untenable but politically convenient situation.”

According to the letter, Barr would be forced to “break the law” if he complies with a subpoena for special counsel Robert Mueller’s unredacted Russia report and its underlying evidence. If Barr doesn’t, Nadler will “label him as part of a cover-up,” according to the letter.

Barr has vowed to release a version of Mueller’s Russia report by the middle of April, with redactions made to grand jury and classified information, – as required under federal law.

House Democrats voted last Wednesday to authorize subpoenas for Mueller’s report and its underlying evidence with no redactions.

Collins notes that Nadler could compel AG Barr to provide the unredacted report if he launches an impeachment hearing, however the top Republican on the panel noted “Perhaps you are loath to begin an impeachment hearing when the facts do not support one.”

“Instead, you refuse to head down that path for political reasons, and have chosen the path of greatest resistance, and least legality – attacking the Attorney General for refusing to break the law while misleading the American public about what the law requires or allows.” 

“Your decision to make groundless claims and repeatedly threaten to go to court not only distracts from other Committee business but, based on firm legal precedent, will also end — after months, if not years, of litigation.”

View image on TwitterView image on TwitterView image on Twitter

Rep. Doug Collins

@RepDougCollins

Democrats can cite no precedent for their demands for grand jury information from the , but there’s a solution we should all be able to agree on: The Judiciary Committee should invite the Special Counsel to testify immediately.

374 people are talking about this

Collins suggests that if Nadler isn’t going to launch an impeachment hearing, he invite Mueller to testify “immediately.”

“For nearly two years, Special Counsel Mueller oversaw an investigation that issued more than 2.800 subpoenas, executed nearly 500 search warrants, and interviewed approximately 500 witnesses. Attorney General Barr was never part of this investigation, and instead simply reviewed the Special Counsel’s final report and has provided Congress, so far, with the Special Counsel’s principal conclusions.”

“I urge you to do the right thing, follow the law, and invite the Special Counsel to testify before the Committee immediatelyDoing so ensures we will hear the unfiltered truth from a man who conducted his investigation with integrity and professionalism.”

END

It looks like Felicity huffman and 13 others are set to plead guilty in the college admissions scam

(courtesy zerohedge)

Felicity Huffman, 13 Others To Plead Guilty In College Admissions Scam

In the latest development in the “largest college admissions scam uncovered in U.S. history,” on Monday afternoon actress Felicity Huffman and 13 others agreed to plead guilty in the scandal, signaling that prosecutors are aggressively wresting deals from the wealthy parents, according to Bloomberg.

The 14 are among 50 people accused by Boston federal prosecutors of engaging in schemes that involved cheating on college entrance exams and paying $25 million in bribes to secure their children admission at well-known universities. Federal prosecutors announced the deals on Monday afternoon, identifying the parents and a University of Texas men’s tennis coach who have negotiated plea bargains.

It’s not yet clear what their sentences will be: according to one New York lawyer, Huffman and Lori Loughlin could end up serving time in prison for their alleged involvement in the high-profile college admissions cheating scandal. Last Wednesday, the Full House and Desperate Housewives stars appeared alongside other wealthy parents in U.S. District Court in Boston for the first time since they were charged in March. During their preliminary hearings, they were both read the federal felony charges they face after their arrests in March: conspiracy to commit mail fraud and honest services mail fraud.

And while the charges carry a potential maximum sentence of five years for each actress, it is more likely that as a result of the plea deal, the celebrities will avoid prison time and be slapped with substantial penalties instead.

* * *

Huffman, who starred in “Desperate Housewives,” was among 33 parents charged in March with participating in the scheme in hopes of getting their children into universities including Yale, Georgetown and the University of Southern California. Prosecutors dubbed it the “largest college admissions scandal the U.S. has ever prosecuted.”

“With deep regret and shame over what I have done, I accept full responsibility for my actions and will accept the consequences that stem from those actions,” Huffman said in a statement. “My daughter knew absolutely nothing about my actions, and in my misguided and profoundly wrong way, I have betrayed her.”

She wasn’t alone: “No words can express how profoundly sorry we are for what we have done,” two of the parents, Bruce and Davina Isacksons, said in a statement on Monday. “Our duty as parents was to set a good example for our children and instead we have harmed and embarrassed them.” They added that they have also let down their “entire community” and said they have cooperated with prosecutors and would continue to do so.

Also last Friday, Gordon Caplan, the former co-chair of Willkie Farr & Gallagher and one of the highest-profile parents in the scandal, also said he would admit his guilt.

Authorities said the scheme was overseen by California college admissions consultant William “Rick” Singer, who has pleaded guilty to facilitating the cheating scam and bribing coaches to present the parents’ children as fake athletic recruits.

Huffman, who is married to the actor William H. Macy, is accused of making a $15,000 contribution to Singer’s foundation in exchange for having an associate of Singer’s in 2017 secretly correct her daughter’s answers on an SAT college entrance exam at a test center that prosecutors say Singer controlled.

Yet while the rich and famous taking advantage of their wealth to get further ahead in life – or help their children to do so – is hardly surprising, what is most bizarre about this entire fiasco is that some still believe that students are still admitted purely on their merits, which is quite delightful in a time when hedge fund managers, politicians and public figures donate tens of millions of dollars to their alma maters not for some giant vanity project, but to extract benefits in exchange for their “donations.” And as the US judicial system is preoccupied with Huffman, Loughlin and the like, far greater crimes take place every day on Wall Street, Washington and, of course, the Marriner Eccles building, and will continue to do so without any DOJ intervention, until one day a revolution finally does break as the population demands real justice for everyone.

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

-END-

 

Let us conclude tonight’s commentary with this great interview with John Rubino and Greg Hunter.  Rubino correctly states that gold is moving back into the centre of the global finanacial system

 

(courtesy Rubino/Greg hunter/USAWatchdog)

Rubino: “Gold Is Moving Back Into The Center Of The Global Financial System”

Via Greg Hunter’s USAWatchdog.com,

What’s Cheap? Gold and Silver – John Rubino

By Greg Hunter On April 7, 2019 In Market Analysis 65 Comments

Unemployment is near 3% and President Trump is calling for rate cuts and quantitative easing. Is the economy doing well or getting ready to tank? Financial writer John Rubino says, “We went from being at all-time highs to down 20% in sort of a flash crash in two months towards the end of last year. That told the Fed and the other central banks that they can never tighten again. This is it for this cycle and for the entire remaining time of today’s financial system for higher interest rates. They abruptly announced to never mind about those four rate hikes that were going to happen in 2019. We (the Fed) are not going to do anything. If we do anything, it will be in the opposite direction and cut interest rates and a new round of QE, etcetera and etcetera. The stock market went right back up to record levels. . . . The end part of this story is how good all this is for gold. . . . The next thing from the Fed will be a rate cut, and it will increase and not decrease its balance sheet. . . . We are going to go preemptively to monetary easing, and that’s really new. This is very, very new. You normally don’t do this. You wait until you see a bear market and a slowdown in the economy that gets people laid off before you start aggressively easing. Apparently, we are going to do that stuff before that stuff starts happening. Who knows what the impact of that will be? If it works the way they want, more people will get hired, wages will pick up and we’ll have inflation in the 4% or 5% range before you know it.”

So, with near record low yields on bonds and near record high prices for stocks, Rubino has just one question. Rubino says, “What’s cheap? Gold and silver. What is down and what is cheap relative to the fundamentals. It’s not just the price of gold and silver, it’s how much gold and silver exists relative to how much paper wealth is in the world. The amount of gold and silver that we are bringing out of the ground is growing at 1% or 2% per year. The amount of paper wealth in the world is growing exponentially. . . .Gold is moving back into the center of the global financial system.”

Another big factor to consider is debt. Rubino says, “Every big country is running deficits that are dramatically bigger than they were five years ago. In the U.S., we are back to $1 trillion a year deficits, which is Obama Administration post Great Recession kind of numbers, and we are doing it 10 years into an expansion. . . . So, in the next recession, we will be taking on huge amounts of new debt at an accelerating rate. We are not fixing any of the mistakes . . . which mean the problems that are going to flow from today’s mistakes are going to be that much bigger because we are compounding yesterday’s mistakes. . . . This is new and scary and fascinating. From a safe distance, this is going to be very interesting to watch. Unfortunately, for most people, they will not be a safe distance. They will be right in the middle of the tornado.

In closing, Rubino says, “It is possible that a garden variety one year recession would blow up the financial markets. That’s the stuff that they are hearing (in the White House) that is terrifying. . . . There are probably older and wiser people whispering in Trump’s ear who are saying the next equities bear market might be the end of the financial world for us. . . . They are so worried, they are will to experiment with monetary policy again in order to prevent the crash that could make them this generation’s Herbert Hoover.”

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with John Rubino, founder of DollarCollapse.com.

end

I WILL SEE YOU TUESDAY NIGHT

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