MAY 28/COMEX EXPIRY DAY SO WE MUST HAVE OUR COMPULSORY RAID ON GOLD/SILVER: GOLD DOWN $6.40//SILVER DOWN 23 CENTS//STANGE! WITH 3 DAYS LEFT BEFORE THE BIG JUNE GOLD DELIVERY MONTH, NO GOLD ENTERS THE COMEX GOLD ARENA//TRADE WAR WITH CHINA ESCALATES AS CHINA PONDERS BANNING EXPORTS OF RARE EARTHS AND THE USA THINKING OF MORE SANCTIONS WITH CHINA AS A CURRENCY MANIPULATOR//EUROSCEPTIC PARTIES GAIN IN LAST WEEKEND ELECTION RESULTS//BRUSSELS READY TO SANCTION ITALY FOR BUDGET DEFICIT VIOLATIONS WHICH WILL ANGER ITS CITIZENRY//TURKEY INVADES NORTHERN IRAQ//GOOD NUMBER OF SWAMP STORIES FOR YOU TONIGHT///

 I WILL UPDATE LATER TONIGHT ON THE GLD/SLV IF ANY CHANGES

 

GLD UPDATED: 10 PM

 

YOUR DATA FOR TODAY:

 

 

 

 

 

 

 

GOLD: $1277.80  DOWN $6.40 (COMEX TO COMEX CLOSING)

Silver:  $14.34 DOWN 23 CENTS  (COMEX TO COMEX CLOSING)

Closing access prices:

Gold : 1279.90

 

 

 

silver:  $14.36

 

 

 

COMEX EXPIRY FOR GOLD/SILVER:  TUES MAY 28/2019

 

LBMA/OTC EXPIRY: MAY 31.2019

 

 

COMEX DATA

 

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

today RECEIVING  5/8

EXCHANGE: COMEX
CONTRACT: MAY 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,283.000000000 USD
INTENT DATE: 05/24/2019 DELIVERY DATE: 05/29/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
661 C JP MORGAN 5
737 C ADVANTAGE 4 3
905 C ADM 4
____________________________________________________________________________________________

TOTAL: 8 8
MONTH TO DATE: 314

 

 

 

NUMBER OF NOTICES FILED TODAY FOR  MAY CONTRACT: 8 NOTICE(S) FOR 800 OZ (0.0025 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  306 NOTICES FOR 3060000 OZ  (.9517 TONNES)

 

 

SILVER

 

FOR MAY

 

 

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

 

total number of notices filed so far this month: 3574 for 17,870,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $8708  DOWN $51

 

 

Bitcoin: FINAL EVENING TRADE: $  8653 DOWN $73 

 

 

 

end

 

XXXX

 

 

 

 

Let us have a look at the data for today

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IN SILVER THE COMEX OI ROSE BY A CONSIDERABLE SIZED 1429 CONTRACTS FROM 210,149 UP TO 211,578  DESPITE THE 6 CENT LOSS IN SILVER PRICING AT THE COMEX. LIQUIDATION OF THE SPREADERS HAVE STOPPED FOR SILVER BUT IT NOW IN FULL FORCE FOR GOLD. TODAY WE ARRIVED CLOSER TO AUGUST’S 2018  RECORD SETTING OPEN INTEREST OF 244,196 CONTRACTS.

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

 0 FOR MAY, 0 FOR JUNE, 715 FOR JULY AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  715 CONTRACTS. WITH THE TRANSFER OF 715 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 715 EFP CONTRACTS TRANSLATES INTO 3.575 MILLION OZ  ACCOMPANYING:

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

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

AND NOW 18.765 MILLION OZ STANDING FOR SILVER IN MAY.

 

 

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

22,647 CONTRACTS (FOR 19 TRADING DAYS TOTAL 22,647 CONTRACTS) OR 113.23 MILLION OZ: (AVERAGE PER DAY: 1191 CONTRACTS OR 5.955 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF MAY:  113.23 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 16.17% 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:          854.33    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

APRIL 2019 TOTAL EFP ISSUANCE:                                              182.87  MILLION OZ.

RESULT: WE HAD A CONSIDERABLE SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1429 DESPITE THE 6 CENT LOSS IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A VERY FAIR SIZED EFP ISSUANCE OF 715 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) . OUR BANKERS RESUMED THEIR LIQUIDATION OF THE SPREAD TRADES TODAY.

TODAY WE GAINED A FAIR SIZED: 715 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 1715 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 1429  OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A 6 CENT LOSS IN PRICE OF SILVER AND A CLOSING PRICE OF $14.57 WITH RESPECT TO FRIDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY!! 

 

 

In ounces AT THE COMEX, the OI is still represented by JUST OVER 1 BILLION oz i.e. 1.058 BILLION OZ TO BE EXACT or 150% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 40 NOTICE(S) FOR  200,000, OZ OF SILVER

IN SILVER,PRIOR TO TODAY, WE  SET THE NEW COMEX RECORD OF OPEN INTEREST AT 243,411 CONTRACTS ON APRIL 9.2018 AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $16.51.  

AND NOW WE RECORD FOR POSTERITY ANOTHER ALL TIME RECORD OPEN INTEREST AT THE COMEX OF 244,196 CONTRACTS ON AUGUST 22/2018 AND AGAIN WHEN THIS RECORD WAS SET, THE PRICE OF SILVER WAS $14.78 AND LOWER IN PRICE THAN PREVIOUS RECORDS.

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ  MAY: 36.285 MILLION OZ ; JUNE/2018  (5.420 MILLION OZ) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   )  FOR AUGUST 6.065 MILLION OZ. , SEPT:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./ DEC. AT 21.925 MILLION OZ   JANUARY AT  5.825 MILLION OZ.AND FEB 2019:  2.955 MILLION OZ/ MARCH: 27.120 MILLION OZ/  APRIL AT 3.875 MILLION OZ/ AND NOW MAY:  18.765 MILLION OZ ..
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018) AND NOW AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

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

 

IN GOLD, THE OPEN INTEREST FELL BY A CONSIDERABLE SIZED 2436 CONTRACTS, TO 517,279 WITH THE  $1.30 PRICE FALL WITH RESPECT TO COMEX GOLD PRICING FRIDAY/THERE WAS SOME PROBABLE LIQUIDATION OF SPREADERS //FRIDAY BUT HUGE LIQUIDATION TODAY.

WE ARE NOW 3 TRADING DAYS PRIOR TO FIRST DAY NOTICE.  THE SIGNAL WAS GIVEN TO START THE LIQUIDATION PROCESS OF OUR SPREADERS ON MAY 21.  

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A FAIR SIZED 1931 CONTRACTS:

APRIL 0 CONTRACTS,JUNE: 1441 CONTRACTS, AUGUST 2019: 490 CONTRACTS, JUNE 2020  0 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 517,279.  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 FAIR SIZED LOSS IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 505 CONTRACTS: 2436 OI CONTRACTS DECREASED AT THE COMEX  AND 1931 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI LOSS OF 505 CONTRACTS OR 50500 OZ OR 1.57 TONNESFRIDAY WE HAD A SMALL PRICE FALL OF $1.30 IN GOLD TRADING .AND WITH THAT FALL IN  PRICE, WE  HAD A FAIR LOSS OF GOLD TONNAGE OF 1.57  TONNES!!!!!!

 

WITH RESPECT TO SPREADING:  WE  HAD SOME ACTIVITY FRIDAY/HUGE TODAY. 

 

FOR NEWCOMERS, HERE IS THE MODUS OPERANDI OF THE CORRUPT BANKERS WITH RESPECT TO THEIR SPREAD/TRADING.

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

“AS YOU WILL SEE, THE CROOKS HAVE NOW SWITCHED TO GOLD AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX GOLD OPEN INTEREST WILL RISE FROM NOW ON UNTIL ONE WEEK PRIOR TO FIRST DAY NOTICE AND THAT IS WHEN THEY START THEIR CRIMINAL LIQUIDATION.

HERE IS HOW THE CROOKS USED SPREADING AS WE ARE NO INTO THE NON ACTIVE DELIVERY MONTH OF MAY HEADING TOWARDS THE VERY ACTIVE DELIVERY MONTH OF JUNE.

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES, HERE IS THE BANKERS MODUS OPERANDI:

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST IS STARTING TO RISE IN THIS NON ACTIVE MONTH OF MAY BUT SO IS THE OPEN INTEREST OF  SPREADERS. THE OPEN INTEREST IN GOLD WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING ACTIVE DELIVERY MONTH (JUNE), 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.” 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAY : 121,622 CONTRACTS OR 12,162,200 OR 378,29 TONNES (18 TRADING DAYS AND THUS AVERAGING: 6649 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 18 TRADING DAYS IN  TONNES: 378.29 TONNES

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

THUS EFP TRANSFERS REPRESENTS 378.29/3550 x 100% TONNES =10.65% OF GLOBAL ANNUAL PRODUCTION SO FAR IN DECEMBER ALONE.***

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     2193.82 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

APRIL 2019 TOTAL ISSUANCE:                 456.10 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 CONSIDERABLE SIZED DECREASE IN OI AT THE COMEX OF 2436 WITH THE SMALL PRICING LOSS  THAT GOLD UNDERTOOK FRIDAY($1.30)) //.WE ALSO HAD A FAIR SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 1931 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 1931 EFP CONTRACTS ISSUED, WE  HAD A FAIR SIZED GAIN OF 1602 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

1931 CONTRACTS MOVE TO LONDON AND 2436 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE LOSS IN TOTAL OI EQUATES TO 1.57 TONNES). ..AND THIS LOSS OF DEMAND OCCURRED WITH THE SMALL FALL IN PRICE OF $1.30 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX. WE  HAD A SOME/NEGLIGIBLE PRESENCE OF SPREADING LIQUIDATION ON FRIDAY//HUGE AMOUNT OF LIQUIDATION TODAY AS OUTLINED ABOVE.

 

 

 

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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD DOWN $6.50 TODAY

A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.47 TONNES

 

 

 

INVENTORY RESTS AT 737.34 TONNES

 

 

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

SLV/

WITH SILVER DOWN 23 CENTS TODAY:

NO CHANGES IN SILVER INVENTORY AT THE SLV:

 

 

 

 

 

 

 

 

/INVENTORY RESTS AT 311.616 MILLION OZ.

 

 

end

 

OUTLINE OF TOPICS TONIGHT

 

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

1. Today, we had the open interest in SILVER ROSE BY A CONSIDERABLE SIZED 1429 CONTRACTS from 210,149 UP TO 211,578 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…..THE SPREADERS HAVE STOPPED THEIR LIQUIDATION IN SILVER BUT HAVE NOW MORPHED INTO GOLD..

 

 

 

 

EFP ISSUANCE:

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

 

0 CONTRACTS FOR APRIL., 0 FOR MAY, FOR JUNE 0 CONTRACTS AND JULY: 715 CONTRACTS  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1715 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 1429 CONTRACTS TO THE 715 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A STRONG GAIN OF 2144 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 10.72 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 7.475 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., 3.875 MILLION OZ FOR APRIL AND NOW 18.765 MILLION OZ FOR MAY

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE 6 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// FRIDAY. WE ALSO HAD A GOOD SIZED 715 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 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

i)TUESDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED UP 17.53 POINTS OR 0.61%  //Hang Sang CLOSED UP 102.72 POINTS OR 0.38%   /The Nikkei closed UP 77.56 POINTS OR 0.37%//Australia’s all ordinaires CLOSED UP 0.64%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9107 /Oil DOWN TO 59.07 dollars per barrel for WTI and 70,08 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.9107 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9254 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/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 /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

 

 

 

 

3A//NORTH KOREA/ SOUTH KOREA

 

 

 

 

 

 

b) REPORT ON JAPAN

3 China/Chinese affairs

 

i)China/USA//Saturday

In the next trade war between China and the uSA, the commerce department is targeting more tariffs against China for currency manipulation.  And not only that, they are targeting other countries as sell

( zerohedge)

ii)Saturday/China/Wall Street \journal

Fascinating article from the Wall Street Journal outlining how Huawei throughout its life has spent all of their resources stealing from others. This is nothing but a crooked company
( zerohedge)
iii)Monday morning/China

China’s jawboning is losing its major. Remember that there will be trouble ahead if the off shore yuan break 7 to one.

( zerohedge)

iv)This is a major retaliatory move by the Chinese in that they are going to do what the uSA is doing: preventing USA corporation’s products from entering China that poses a threat to their national security.

( zerohedge)

v)We highlighted this to you on Friday and it sure is a wake up call.  This is the first bank that financial regulators allowed to fail  (Baoshang Bank in Mongolia)  Is this a blueprint for future failures?
( zerohedge)

vi)The rhetoric intensifies as now Huawei accuses Fed ewx of diverting packages destined to it and saying that they are doing Trumps dirty work. It is now impossible to do a trade deal with China.

(courtesy zerohedge)

VII) Beijing is ready for the killer blow: banning exports of rare earths

( zerohedge)

viii)Apple braces for a backlash by China especially if citizens of China boycott Apple iphones plus other Apple products..and thus investors are warning of a profit plunge( zerohedge)

4/EUROPEAN AFFAIRS

i)UK

Tom Luongo discusses how Farge has taken down another Tory Government and what to expect next in this saga whereby Eurocrats have no interest in the will of the people

( Tom Luongo/)

 

i  b)  UK

Here are the 8 candidates vying for the job of Prime minister of Great Britain
( Mish Shedlock)
ii)EU
Bankers are stunned as Europe introduces a new security:  negative interest rates on Mortgage Bonds.  Yes, that is correct, a zero interest on bonds on your property
( John Rubino/DollarCollapse.com)
iii)Italy

This will probably be a first: The EU will tax a country over their excessive debt. Actually for the last 5 years Italy’s Debt to GDP has remained around 132 to 135%. You will recall that in December, Salvini wanted to kick start his moribund economy and spend his way out of their quagmire.  The EU has resisted and now they are ready to fine that which the Italian populace will certainly revolt. Grab your popcorn on this:

( zerohedge)

iv)Election results across Europe/May 23-May 26
Populists shatter the EU status quo in the latest parliamentary vote:
( zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)IRAN/USA

Again the rhetoric increases as Iran is now touting “secret weapons” capable of sinking USA warships.  This is in reaction to further troop deployment

( zerohedge)

ii)IRAN/USANow the USA after promising a 1500 troop deployment is now sending a dozen fighter jets and a drone fleet.  The USA is engaging in this due to an escalating campaign by Iran

( zerohedge

iii)LIBYA
After a lull in the fighting, General Hafter seems ready to seize and rip through Tripoli.  He controls the Eastern side of Libya (Benghazi area) and the South.  Once he gets Tripoli which is under UN control, he will have the entire country under his control  He has the backing of the uSAand France
(zerohedge)

iv)TURKEY/SYRIA

Good reason for gold to fall this morning:  Turkey invades Northern Iraq in an attempt to knock out uSA ally Kurds.
I could understand this move if Turkey is a solvent nation but they are not they are insolvent
(courtesy zerohedge

 

6. GLOBAL ISSUES

 

i)The global auto industry

It sure looks like we have reached peak price for new autos.  During May already a massive 38,000 jobs have been shed

( zerohedge)

ii)GLOBAL/FOOD SUPPLY/

This is surely a huge global problems the wettest in all of USA history strikes the USA plus other major hits to all parts of the globe

(courtesy Michael Snyder)

 

 

7. OIL ISSUES

 

 

 

8 EMERGING MARKET ISSUES

 

VENEZUELA/

Maduro is very angry that inbound gas tankers are being “sabotaged” and not allowed to leave their ports heading  to Caracas.

(zerohedge)

 

 

 

 

9. PHYSICAL MARKETS

i)Vietnam, is still a gold loving nation for its citizens and as you can see below, one person bought his house with gold.  The government of course is not happy and would like citizens to use their own currency the Dong.  It just has not caught on…

(courtesy Bloomberg/GATA)

ii)It now seems that the Tanzanian government will now only deal with Barrick in their dispute over a 190 billion dollar tax bill.  Barrick, owns Acacia majority owned and in order to save the day as an informal plan to buy out Acacia’s minority shareholders.

(Bloomberg/GATA)

 

 

 

 

 

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

 

 

MARKET TRADING//

MARKET TRADING/Europe Monday

Early morning//Election results showing a big gain for Eurosceptic parties but not enough to foil a majority for the dominant European parties and their policies.  Trump states that he is not ready for a deal with China

( zerohedge)

TRADING TUESDAY

All is not well this morning with the USA 10 yr bond yield at 2.29

(zerohedge)

TRADING/LATE TUESDAY MORNING
DEAD CAT BOUNCE!

 

 

 

ii)Market data

Good indicator that the uSA economy is faltering:  home price gains have now slumped for the 12th straight month

( zerohedge)

iii)USA ECONOMIC/GENERAL STORIES

a)Welcome to the world of San Francisco

( zerohedge)

b)This is a good indicator of how good the economy is behaving:  Manhattan home prices have tumbled the most since 2010

( zerohedge)
c)Peru on Sunday got hit with a 8.0 magnitude earthquake.  California was then hit with more than 80 tremors.We must be very cognizant of these developments surrounding the ring of fire

( Michael Snyder)

d)Trump attacks the crime bill signed into law by Biden and Bill Clinton

(courtesy zerohedge)

e)This is going to be very costly to insurance companies and the USA government

( zerohedge)

SWAMP STORIES

a)Trump targets the Genesis of the Russian collusion:  how Mifsud fed PapaD. with the phony story in March of 2016 and this was fed to Downer who in turned fed this to the Australian government who in turn fed it back to the FBI. Trump also wants to learn about the Ukrainian government trying to influence the election as they were staunch supporters of Hillary

( zerohedge)

b)The real colluders…the real obstructionists and the real leakers…the Democrats.

a must read…

(courtesy Victor Davis Hanson/for the American Greatness Blog)

E)SWAMP STORIES/MAJOR STORIES//THE KING REPORT
end
LET US BEGIN:

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A CONSIDERABLE SIZED 2436 CONTRACTS TO A LEVEL OF 517,279 WITH THE SMALL FALL OF $1.30 IN GOLD PRICING WITH RESPECT TO FRIDAY’S // COMEX TRADING)

WE ARE NOW IN THE NON ACTIVE DELIVERY MONTH OF MAY..  THE CME REPORTS THAT THE BANKERS ISSUED A FAIR SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 1931 EFP CONTRACTS WERE ISSUED:

0 FOR JUNE ’19: 1441 CONTRACTS , AUG; 490 CONTRACTS: 0 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  1602 CONTRACTS.

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

ON A NET BASIS IN OPEN INTEREST WE LOST THE FOLLOWING TODAY ON OUR TWO EXCHANGES: 505 TOTAL CONTRACTS IN THAT 1931 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A CONSIDERABLE  SIZED 2436 COMEX CONTRACTS.

 

NET LOSS ON THE TWO EXCHANGES : 505 contracts OR 50,500 OZ OR 1.57 TONNES.

 

We are now in the NON active contract month of MAY and here the open interest stands at 57 contracts, having LOST 1 contracts. We had 0 notices served yesterday so we LOST 1 contract or an additional 100 oz will not stand as they guys refused to morph into a London based forward as well as negating a fiat bonus

The next contract month after May is June and here the open interest FELL by 31,327 contracts DOWN to 151,989.  July LOST 62 contracts to stand at 847.  After July the next active month is August and here the OI rose by 27,467 contracts up to 237,645 contracts.  We no doubt witnessed SOME spreading liquidation ON FRIDAY BUT A HUGE LIQUIDATION TODAY. 

 

We have 3 more trading days before first day notice, May 31.2019.

 

 

 

TODAY’S NOTICES FILED:

WE HAD 8 NOTICES FILED TODAY AT THE COMEX FOR  800  OZ. (0.02488 TONNES)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total COMEX silver OI ROSE BY A CONSIDERABLE SIZED 1429 CONTRACTS FROM 210,149 DOWN TO 211,578 (AND CLOSER TO THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S  OI COMEX GAIN OCCURRED with the 6 CENT FALL IN PRICING.//FRIDAY.

 

 

WE ARE NOW INTO THE  ACTIVE DELIVERY MONTH OF MAY.  HERE WE HAVE 219 OPEN INTEREST STAND SO FAR FOR A GAIN OF 10 CONTRACTS.  WE HAD 3 NOTICES SERVED UPON YESTERDAY SO IN ESSENCE WE GAINED 13 CONTRACTS  OR AN ADDITIONAL 65,000 OZ WILL STAND FOR DELIVERY AS THESE GUYS REFUSED TO MORPH INTO LONDON BASED FORWARDS AND AS WELL THEY NEGATED A FIAT BONUS.

 

 

 

 

THE NEXT MONTH AFTER MAY IS THE NON ACTIVE MONTH OF  JUNE.  HERE THIS MONTH LOST 26 CONTRACTS DOWN TO 618. AFTER JUNE IS THE ACTIVE MONTH OF JULY, (THE SECOND LARGEST DELIVERY MONTH OF THE YEAR FOR SILVER) AND HERE THIS MONTH GAINED 1090 CONTRACTS DOWN TO 157,398 CONTRACTS. THE NEXT ACTIVE MONTH AFTER JULY FOR SILVER IS SEPTEMBER AND HERE THE OI ROSE BY 225 UP TO 20,919 CONTRACTS.

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

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

 

 

Trading Volumes on the COMEX TODAY: 556,120  CONTRACTS (high spreading liquidation)  

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  303,461  contracts (some spreading liquidation)

 

 

 

 

 

INITIAL standings for  MAY/GOLD

MAY 28 /2019.

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

oz

 

 

 

 

 

 

 

 

Deposits to the Customer Inventory, in oz  

 

 

 

nil oz

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No of oz served (contracts) today
8 notice(s)
 800 OZ
(0.002488 TONNES)
No of oz to be served (notices)
49 contracts
(4900 oz)
0.1524 TONNES
Total monthly oz gold served (contracts) so far this month
314 notices
31400 OZ
.9766 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

 

we had 0 dealer entries:

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

We had 0 kilobar entries

 

we had 0 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into everybody else: 0

 

 

total gold deposits: 0  oz

 

 very little gold arrives from outside/ nothing arrived   today

we had 0 gold withdrawals from the customer account:

 

 

Gold withdrawals;

i)  We had 0 withdrawal:

 

 

 

 

 

.

total gold withdrawals;   nil oz

 

 

i) we had 0 adjustments today

FOR THE MAY 2019 CONTRACT MONTH)

Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 8 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 5 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 MAY /2019. contract month, we take the total number of notices filed so far for the month (314) x 100 oz , to which we add the difference between the open interest for the front month of MAY. (57 contract) minus the number of notices served upon today (8 x 100 oz per contract) equals 36,300 OZ OR 1.129 TONNES) the number of ounces standing in this NON active month of MAY

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

No of notices served (314 x 100 oz)  + (57)OI for the front month minus the number of notices served upon today (8 x 100 oz )which equals 36,300 oz standing OR 1.129 TONNES in this NON active delivery month of MAY.

We LOST 1 contract or an additional 100 oz will NOT stand for delivery as they  morphed into a London based forwards as well as accepting a fiat bonus.

 

 

 

 

 

SURPRISINGLY LITTLE TO NO  GOLD HAS BEEN ENTERING THE COMEX VAULTS AND WE HAVE WITNESSED THIS FOR THE PAST YEAR!!  WE HAVE ONLY 6.233 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 1.129 TONNES OF GOLD STANDING// THEY SEEM TO BE USING CONSIDERABLE GOLD VAPOUR TO SETTLE UPON UNSUSPECTING LONGS.

IF THIS IS GOING ON IN MAY, I JUST CAN’T WAIT TO SEE WHAT WILL HAPPEN IN JUNE WHICH IS A HUGE DELIVERY MONTH.

 

 

 

 

 

total registered or dealer gold:  200,212.342 oz or  6.2274 tonnes
total registered and eligible (customer) gold;   7,679,487.05 oz 238.86 tonnes

 

 

FOR COMPARISON FIRST DAY NOTICE FOR MAY 2018 AND FINAL STANDING MAY 31 2018//AND COMPARISON

OF OPEN INTERESTS FOR THE UPCOMING JUNE 2019 CONTRACT VS JUNE 2018

 

 

 

AT FIRST DAY NOTICE MAY 1 2018: WE HAD 1.284 TONNES OF GOLD STAND.  BY MONTH’S END:  2.27 TONNES AS WE HAD ONE QUEUE JUMPING IN THE MIDDLE OF THE MONTH.

ON MAY 29.2018 WE HAD 83,331 OPEN INTEREST CONTRACTS STILL OUTSTANDING WITH 2 TRADING DAYS AND THIS COMPARES TO 154,081 CONTRACTS WITH 3 DAYS TO GO.

QUITE A DIFFERENCE!!

FOR THE INITIAL JUNE 2018 CONTRACT WE HAD A HUGE 32.152 TONNE STAND.

HOWEVER BY MONTH’S END ONLY 21.56 TONNES EVENTUALLY STOOD AS THE REST MORPHED INTO LONDON BASED FORWARDS.

IN THE LAST 32 MONTHS 117 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

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
MAY 28 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
28,063.598 oz
CNT
HSBC

 

 

 

 

 

 

 

Deposits to the Dealer Inventory
NIL oz
Deposits to the Customer Inventory
nil oz
No of oz served today (contracts)
40
CONTRACT(S)
(200,000 OZ)
No of oz to be served (notices)
179 contracts
895,000 oz)
Total monthly oz silver served (contracts) 3544 contracts

17,870,000 oz)

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

**

 

we had 0 inventory movement at the dealer side of things

 

total dealer deposits: NIL  oz

total dealer withdrawals: nil oz

we had  0 deposits into the customer account

into JPMorgan:  nil

 

 

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

JPMorgan now has 149.469 million oz of  total silver inventory or 48.80% of all official comex silver. (149 million/307 milli

into everybody else:   nil

 

 

 

 

 

 

 

 

 

 

 

 

total customer deposits today:  nil  oz

 

we had 2 withdrawals out of the customer account:

 

i) out of CNT: 14,918.458 oz

ii) Our od HSBC: 13,145.140 oz

 

 

 

 

 

total withdrawals:  28,063.598 oz

 

we had 1 adjustment :

i)Out of CNT:  124,514.390 oz was adjusted out of the customer account and this landed into the dealer account

 

total dealer silver:  92.549 million

total dealer + customer silver:  306.691 million oz

 

 

The total number of notices filed today for the MAY 2019. contract month is represented by 40 contract(s) FOR  15,000  oz

To calculate the number of silver ounces that will stand for delivery in MAY, we take the total number of notices filed for the month so far at 3574 x 5,000 oz = 17,870,000 oz to which we add the difference between the open interest for the front month of MAY. (219) and the number of notices served upon today (40 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the MAY/2019 contract month: 3574(notices served so far)x 5000 oz + OI for front month of MAY( 219) -number of notices served upon today (40)x 5000 oz equals 18,765,000 oz of silver standing for the MAY contract month.

We GAINED 13 contracts or an additional 65,000 oz will stand as these guys refused to  morph into London based forwards as well as negating a fiat bonus for their efforts. WE HAVE SOME SERIOUS PLAYERS GOING AFTER LARGELY DEPLETED PHYSICAL SILVER!

 

 

 

 

 

 

FOR COMPARISON VS LAST YEAR:

 

 

 

 

ON FIRST DAY NOTICE APRIL 30/2018 (FOR THE MAY 2018 CONTRACT MONTH) WE HAD 24.11 MILLION OZ STAND FOR DELIVERY.  BY MONTH END WE HAD HUGE QUEUE JUMPING AND THUS 36.285 MILLION OZ EVENTUALLY STOOD FOR DELIVERY.

ON FIRST DAY NOTICE FOR THE JUNE 2018 CONTRACT WE INITIALLY HAD  3.43 MILLION OZ STAND WHICH WAS HUGE FOR A NON DELIVERY MONTH

EVENTUALLY, 5.405 MILLION OZ STOOD FOR PHYSICAL DELIVERY.

ON THE 29TH OF MAY WE HAD  731 OPEN INTEREST WITH TWO DAYS BEFORE FIRST DAY NOTICE

ON THE 28TH OF MAY WE HAD 618 OPEN INTEREST CONTRACTS STILL OUTSTANDING WITH 3 DAYS TO GO BEFORE FIRST DAY NOTICE.

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  105,918 CONTRACTS

 

 

 

 

 

 

CONFIRMED VOLUME FOR YESTERDAY: 43,643 CONTRACTS..

volumes on silver are becoming a lot less lately.

 

..

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 43,643 CONTRACTS EQUATES to 218 million  OZ 31.1% 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 FALLS TO -4.35% (MAY 28/2019)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -1.91% to NAV (MAY 28/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -4.35%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 12.76 TRADING 12.21/DISCOUNT 4.48

END

And now the Gold inventory at the GLD/

MAY 28/WITH GOLD DOWN $6.50 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.47 TONNES/INVENTORY RESTS AT 737.34 TONNES

MAY 24/WITH GOLD DOWN $1.60 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 738.81 TONNES

MAY 23/WITH GOLD UP $11.10 TODAY: A STRANGE WITHDRAWAL OF .88 TONNES FORM THE GLD/INVENTORY RESTS AT 738,81 TONNES

MAY 22//WITH GOLD FLAT TODAY: WE HAD A GOOD 1.52 TONNES OF GOLD DEPOSIT INTO THE GLD/INVENTORY RESTS TONIGHT AT 739.69 TONNES

 

MAY 21/WITH GOLD DOWN $3.65 TODAY: A SURPRISE 2.00 TONNES WERE ADDED  TO THE GLD GOLD INVENTORY//INVENTORY RESTS AT 738.17 TONNES

MAY 20/WITH GOLD UP $1.00 A HUGE 2.96 TONNE DEPOSIT INTO THE GLD//INVENTORY RESTS AT 736.17 TONNES

MAY 17/WITH GOLD DOWN $9.70 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 733.23 TONNES

MAY 16/WITH GOLD DOWN $11.50: A WITHDRAWAL OF 3.23 TONNES FROM THE GLD//INVENTORY RESTS AT 733.23 TONNES

MAY 15/WITH GOLD UP $1.50 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 736.46 TONNES

MAY 14//WITH GOLD DOWN $5.45 TODAY: STRANGE!! THE CROOKS DECIDED TO DEPOSIT A HUGE 3.23 TONNES INTO THE GLD INVENTORY//INVENTORY RESTS AT 736.46 TONNES

MAY 13/ WITH GOLD UP ANOTHER $15.40 TODAY: STRANGE! A MASSIVE WITHDRAWAL OF 6.41 TONNES OF GOLD (TO TAME GOLD’S RISE TODAY)/INVENTORY RESTS AT 733.23 TONNES

MAY 10 WITH GOLD UP $2.15 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 739.64 TONNES

MAY 9//WITH GOLD UP $4.00 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 739.64 TONNES

MAY 8/WITH GOLD DOWN $3.70 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 739.64 TONNES

MAY 7/ WITH GOLD UP $1.80: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 739.64 TONNES

MAY 6/WITH GOLD UP $2.35: ANOTHER WITHDRAWAL OF 5.88 TONNES OF GOLD FROM THE GLD/INVENTORY RESTS AT 739.64 TONNES

MAY 3/WITH GOLD UP $9.35 TODAY: A WITHDRAWAL  OF 1.17 TONNES OF GOLD FROM THE GLD INVENTORY/INVENTORY RESTS AT 745.52

MAY 2/WITH GOLD DOWN $12.30 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 746.69 TONNES

MAY 1/WITH GOLD DOWN $1.20 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 746.69 TONNES

APRIL 30/WITH GOLD UP $4.30 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 746.69 TONNES//

APRIL 29/WITH GOLD DOWN $7.00: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 746.69 TONNES

APRIL 26/WITH GOLD UP $9.2//ANOTHER BIG CHANGE IN GOLD INVENTORY AT THE GLD; A WITHDRAWAL OF 1.18 TONNES OF GOLD FROM THE GLD.//INVENTORY LOWERS TO 746.69 TONNES TONNES

APRIL 25//WITH GOLD UP $.05 TODAY  (BASICALLY FLAT) NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 747.87 TONNES

 

APRIL 24 WITH GOLD UP  $6.00 TODAY// TWO TRANSACTIONS: 1)A HUGE WITHDRAWAL OF 2.05 TONNES FROM THE GLD AND THEN II) ANOTHER WITHDRAWAL OF 1.76 TONNES//INVENTORY RESTS AT 747.87 TONNES

APRIL 23./WITH GOLD DOWN $4.45 TODAY: NO CHANGES AT THE GLD/INVENTORY RESTS AT 751.68 TONNES//

APRIL 22/WITH GOLD UP $1.75//A SMALL WITHDRAWAL OF .59 TONNES OF GOLD FROM THE GLD INVENTORY//INVENTORY RESTS AT 751.68 TONNES

APRIL 18/WITH GOLD DOWN $.45 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT752.27 TONNES

APRIL 17/WITH GOLD DOWN $0.10 TODAY: ANOTHER HUGE WITHDRAWAL OF 1.76 TONNES AT THE GLD WHICH WAS USED IN YESTERDAY’S RAID/INVENTORY RESTS AT 752.27 TONNES

APRIL 16/WITH GOLD DOWN $13.60 TODAY: A HUGE WITHDRAWAL OF 3.82 TONNES AT THE GLD/INVENTORY RESTS AT 754.03

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

MAY 28/2019/ Inventory rests tonight at 737.34 tonnes

*IN LAST 600 TRADING DAYS: 196.63 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 500 TRADING DAYS: A NET 30.76 TONNES HAVE NOW BEEN LOST INTO THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

MAY 28/WITH SILVER DOWN 23 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.616 MILLION OZ//

MAY 24/WITH SILVER DOWN 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.616 MILLION OZ/

MAY 23/WITH SILVER UP 16 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.616 MILLION OZ//

MAY 22/WITH SILVER UP 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS TONIGHT AT 311.616 MILLION OZ

MAY 21: WITH SILVER DOWN 3 CENTS TODAY: A SMALL CHANGE IN SILVER INVENTORY AT THE SLV; A WITHDRAWAL OF 750,000 OZ///INVENTORY RESTS AT 311.616 MILLION OZ//

MAY 20/WITH SILVER UP 6 CENTS:NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 312.366 MILLION OZ

MAY 17/WITH SILVER DOWN 13 CENTS TODAY: A BIG CHANGES IN SLV: A WITHDRAWAL OF 3.185 MILLION OZ FROM THE SLV INVENTORY VAULTS:/INVENTORY RESTS AT 312.366 MILLION OZ//

MAY 16/WITH SILVER DOWN 26 CENTS: NO CHANGES IN THE SLV INVENTORY//INVENTORY RESTS AT 315.551 MILLION OZ//

MAY 15/WITH SILVER UP 2 CENTS TODAY: A BIG CHANGE IN SLV  INVENTORY: A WITHDRAWAL OF 1.031 MILLION OZ//  THE SLV/INVENTORY RESTS AT 315.551 MILLION OZ.

MAY 14/WITH SILVER UP 2 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV. INVENTORY RESTS AT 316.582 MILLION OZ/

MAY 13//WITH SILVE5 DOWN 2 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.582 MILLION OZ…

MAY 10/WITH SILVER UP 2 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 316.582 MILLION OZ///

MAY 9/WITH SILVER DOWN 9 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 316.582 MILLION OZ//

MAY 8/WITH SILVER DOWN 3 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.582 MILLION OZ///

MAY 7/WITH SILVER DOWN 3 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.582 MILLION OZ//

MAY 6/WITH SILVER DOWN 3 CENTS WE HAD ANOTHER DEPOSIT OF 891,000 OZ OF SILVER INTO THE SLV/INVENTORY RESTS AT 316.582 MILLION OZ/

MAY 3//WITH SILVER UP 34 CENTS TODAY: A DEPOSIT OF 843,000 OZ INTO THE SLV/TOTAL INVENTORY RESTS AT 315.691 MILLION OZ//

MAY 2/WITH SILVER DOWN ANOTHER 13 CENTS, MIRACUOUSLY THE AUTHORITIES ADD 2.869 MILLION OZ OF SILVER BACK INTO THE SLV/INVENTORY RESTS AT 314.848 MILLION OZ//

MAY 1/WITH SILVER DOWN 23 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ////

APRIL 30/WITH SILVER UP 5 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ/

APRIL 29/ WITH SILVER DOWN 13 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ.

APRIL 26//WITH SILVER UP 12 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ//

APRIL 25/WITH SILVER DOWN 4 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ///

APRIL 24/WITH SILVER UP 15 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ//

APRIL 23./WITH SILVER DOWN 21 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ///

APRIL 22/WITH SILVER UP 4 CENTS TODAY; NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.979 MILLION OZ///

APRIL 18/WITH SILVER FLAT TODAY: A SHOCKING 2.8122 MILLION PAPER OZ WERE ADDED INTO SLV INVENTORY: INVENTORY RESTS AT 311.979 MILLION OZ/

APRIL 17/WITH SILVER UP ONE CENT TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.167 MILLION OZ///

APRIL 16/WITH SILVER DOWN 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 309.167 MILLION OZ//

 

 

MAY 28/2019:

 

Inventory 311.616 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 2.06/ and libor 6 month duration 2.55

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

G0LD LENDING RATE: + .49

 

XXXXXXXX

12 Month MM GOFO
+ 2.31%

LIBOR FOR 12 MONTH DURATION: 2.62

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.31

end

 

PHYSICAL GOLD/SILVER STORIES

 

end
i) GOLDCORE BLOG/Mark O’Byrne

The Best Way To Invest In Gold

By Dominic Frisby, Money Week

Own Gold Britannias and Sovereigns (CGT free) in Swiss vaults

Today we’re talking gold.

I’m not going to make projections about the price – whether it’s going to go up or down.

Instead we’re going to look at the cost of buying and selling gold.

How to buy gold on the cheap

What’s the easiest, cheapest way to buy gold?

Most would say via one of the gold exchange-traded funds (ETFs) such as the ETFS Physical Gold (LSE: PHAU), for more see a list of gold ETFs here. You buy the ETF through your broker, the same way you would buy a share. You pay a small premium to the spot price of gold, and a small annual percentage to cover storage and other related costs.

ETFs really are brilliantly simple. It is because they’re so convenient that ETFs have become the means by which most investors and – perhaps more importantly in the financial scale of things – most institutions buy gold.

Almost as convenient is to open an account with one of the online bullion dealers – the likes of GoldMoney, GoldCore or Bullion Vault. You pay a small premium to the spot price of gold and storage costs are low.

The overall costs are usually marginally higher than ETFs (although in some cases they are lower), but many investors prefer the online bullion dealer route because they feel the gold that they buy is “theirs”. The gold bars are specifically allocated to them and they can take delivery, if they so choose. I should stress it is also possible to take delivery via some ETFs, but the process is more cumbersome.

I have used both methods, and they both have their advantages and disadvantages. Online bullion dealers are great – and this is a growth business – but the most gold bought and sold by investors is held with the ETFs, because institutions prefer them.

Competition between ETFs and bullion dealers has conspired to drive down prices, much to the benefit of the consumer. But there is one huge cost that neither of these methods is able to avoid – tax. This assumes you’re not buying your gold via an ISA or a SIPP, which it is, for the most part, possible to do via ETF or bullion dealer.

Capital gains tax (CGT) currently stands at 20% in the UK for higher rate taxpayers and 10% for lower. Funds don’t pay CGT. It is paid by the investor when they sell or redeem, assuming they made a profit. It kicks in once you have made profits of more than £12,000 in a year.

So over and above that level, you’re facing an unavoidable 10% or 20% cost for buying and selling gold at a profit. It used to be 18% or 28%, but even at current rates, it’s a considerable dent to profits.

There’s another method of buying gold (and silver), which, quite legally, avoids this cost altogether. There is a slightly higher premium to spot when you buy, there are slightly higher storage costs, and there is a slight discount to spot when you sell – but we are talking about a few per cent here, nothing like 20%.

Given the potential savings involved, it’s surprising that more UK investors don’t buy their gold and silver in this way. The method I’m describing, if you haven’t already figured it out, is to buy sovereigns and Britannias.

Gold sovereigns and Britannias – avoid paying capital gains tax on your gold profits

The gold sovereign used to be the pound coin. Imagine that – a pound coin made of solid gold. It was the pound coin from 1816, after the “Great Recoinage”, until 1932, when the UK finally abandoned its gold standard. Until then, the pound really was “as good as gold” – 22 carat gold to be precise (that’s about 92% purity).

A gold sovereign weighs about seven grammes, which is about a quarter of an ounce. Such is the devaluation of money that has taken place over the last three generations, it now takes about 250 pound coins to buy an old pound coin.

Despite the UK no longer being on the gold standard, the Royal Mint began producing sovereigns again in 1957 and continues to the present day. Many of them are minted in that well-known British heartland, Delhi (there is a huge market for them in India).

Technically these coins are legal tender, so they are exempt from CGT.

Aren’t sovereigns collectors’ items, and so more expensive than ordinary gold? Some are. For example the sovereigns struck in 1937 for Edward VIII were never circulated, because he abdicated. Thus the 1937 sovereign has considerable numismatic value. One sold in 2014 for over half a million pounds. That’s some premium.

Usually though, because sovereigns are so common, the numismatic value is zero. You can pick up 100-plus-year-old Victorian coins at a few per cent over spot. You get the history for nothing.

Gold Britannias – which are an ounce in weight – have only been issued since 1987. But they, too, are considered coins of the realm. Despite the fact that an ounce of gold is close to £1,000, the face value of a Britannia is £100. Don’t ask me how that works; I’m sure there’s a reason. But, as coins of the realm, they are exempt from CGT.

The Royal Mint began producing silver Britannias in 1997. They, too, weigh an ounce. They have a face value of £2 (an ounce of silver is about £12). They too are exempt from CGT.

For the quantities you would need to be buying to be liable for 20% CGT, you’re likely to be paying 4%-6% in premium above spot to buy any of these coins. You’ve then got to store them – that’s as little as a few hundred pounds a year if you go for a safety deposit box, but the simplest solution is to store them with the dealer you bought them from, which makes selling that much quicker when you come to do that. There will be a cost to this.

However, all in all, gold sovereigns and Britannias make for a considerable saving on cost because of the CGT exemption – assuming you have made a gain when you come to sell. And of course, there’s no guarantee of that.

So if you think the premium over the spot price is worth paying in order to avoid shelling out 20% CGT, there are a plethora of sovereign dealers out there.

Mark O’Byrne, one of the men behind GoldCore, is a buddy of mine. I like GoldCore. You can deal with them either over the phone or open an account online. You can buy sovereigns, Britannias, bars and probably even bells, and they’ll take care of the storage too.

Full article by Dominic Frisby on Money Week

Own Gold & Silver Coins (CGT Free in the UK) Stored In Zurich With Six Months Free Storage

News and Commentary

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Let’s Hope the Next Prime Minister Has a Sound Grasp of Economics

BIS Reduces Its Gold Swaps by Two-thirds Over Last Two Months

In Vietnam You Can Still Buy a House With Gold, and the Government Doesn’t Like It

Japanese Secret to a Longer and Happier Life is Gaining Attention from Millions Around the World

Baltimore Ransomware Attack: NSA Faces Questions
Click Here

WATCH VIDEO HERE

LBMA Gold Prices (USD, GBP & EUR – AM/ PM Fix)
27-May-19 UK Bank Holiday
24-May-19 1281.50 1282.50, 1011.36 1011.89 & 1145.92 1145.40
23-May-19 1275.95 1283.65, 1009.79 1015.37 & 1146.19 1152.46
22-May-19 1274.00 1273.80, 1005.44 1008.09 & 1141.12 1141.20
21-May-19 1276.00 1271.15, 1004.85 998.62 & 1144.19 1139.84
20-May-19 1275.25 1276.85, 1000.05 1003.22 & 1142.63 1143.42
17-May-19 1285.80 1280.80, 1007.55 1005.17 & 1152.08 1146.70
16-May-19 1295.55 1291.70, 1009.62 1009.46 & 1155.76 1154.78
15-May-19 1298.90 1299.10, 1005.87 1011.87 & 1158.75 1161.53
14-May-19 1297.60 1298.40, 1002.14 1005.48 & 1154.34 1158.04
13-May-19 1282.95 1295.60, 985.95 994.89 & 1142.47 1151.27

 

Mark O’Byrne
Executive Directo

GATA STORIES WITH RESPECT TO GOLD/PRECIOUS METALS.

 

* * *

Vietnam, is still a gold loving nation for its citizens and as you can see below, one person bought his house with gold.  The government of course is not happy and would like citizens to use their own currency the Dong.  It just has not caught on…

(courtesy Bloomberg/GATA)

In Vietnam you can still buy a house with gold, and the government doesn’t like it

 Section: 

By John Boudreau and Nguyen Dieu Tu Uyen
Bloomberg News
Monday, May 27, 2019

Vietnam may be one of the world’s fastest-growing economies, yet it’s still in the dark ages when it comes to joining the global trend toward cashless transactions. To understand why, look no further than to consumers like Tran Van Nhan, who recently bought his two-bedroom home in Hanoi with gold and a sack of cash.

“We paid almost half in gold bars and the rest in cash,” Nhan, a 47-year-old shopkeeper, said of his new $138,000 condo. “We did that because we and the flat’s owner didn’t want to do a bank transfer. We are so used to buying things with cash and gold.”

 

Prime Minister Nguyen Xuan Phuc is trying to drag his citizens into the modern era of digital payments, reduce the amount of U.S. dollars in circulation in the country and establish the dominance of the nation’s domestic currency, the Vietnamese dong. That also means introducing Vietnamese households to credit cards, bank transfers and digital payments rather than carrying around piles of cash and bullion for purchases.

Behind the push is growing frustration among Vietnamese officialdom about the cost of printing banknotes and the need for more transparent payment records in order to crack down on tax evasion and money laundering, a growing problem as the $237-billion economy continues to expand dramatically. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-05-27/vietnam-s-next-revolu…

* * *

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 vi

https://www.bloomberg.com/news/articles/2019-05-15/bitcoin-rally-is-mas

end

It now seems that the Tanzanian government will now only deal with Barrick in their dispute over a 190 billion dollar tax bill.  Barrick, owns Acacia majority owned and in order to save the day as an informal plan to buy out Acacia’s minority shareholders.

(Bloomberg/GATA)

 

Tanzania says it won’t deal with Acacia anymore, only Barrick

 Section: 

Tanzania Says Acacia Mining Won’t Be Allowed Any Role in Country

By Kenneth Karuri and Danielle Bochove
Bloomberg News
Tuesday, May 28, 2019

Tanzania will no longer allow Acacia Mining Plc to manage its mines in the country and will work only with the company’s parent, Barrick Gold Corp., to resolve the two-year impasse that has stymied operations, a government spokesman said.

“We will no longer work with Acacia,” Hassan Abbasi said today by phone. “Under no circumstances can Acacia be a party to the agreements, or have any role in the operation or management of the Barrick mining subsidiaries in Tanzania. The ball is now in Barrick’s court.”

… 

Acacia has been at odds with Tanzania’s government since July 2017, when the state handed the London-listed gold producer a $190 billion tax bill, saying it under-declared bullion exports. Barrick has since led discussions with the government and, in an effort to solve the impasse, surprised the market last week with an informal plan to buy out Acacia’s minority shareholders. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-05-28/tanzania-says-acacia-…



iii) Other Physical stories

A Short History of the Gold Cartel

James Turk
Goldmoney

Governments want a low gold price to make national currencies look good. Gold is recognizable the world over as the “canary in the coal mine” when it comes to money. A rising gold price blurts the unpleasant truth that a national currency is being poorly managed and that its purchasing power is being inflated.

This reality is made clear by former Federal Reserve Chairman Paul Volcker. Commenting in his memoirs about the soaring gold price in the years immediately following the end of the gold standard in 1971, he notes: “Joint intervention in gold sales to prevent a steep rise in the price of gold, however, was not undertaken. That was a mistake.” It was a “mistake” because a rising gold price undermines the thin reed upon which all fiat currency rests — confidence. But it was a mistake only from the perspective of a central banker, which is of course at odds with anyone who believes in free markets.

The U.S. government has learned from experience and has taken Volcker’s advice. Given the U.S. dollar’s role as the world’s reserve currency, the U.S. government has the most to lose if the market chooses gold over fiat currency and erodes the government’s stranglehold on the monopolistic privilege it has awarded to itself of creating “money.”

So the U.S. government intervenes in the gold market to make the dollar look worthy of being the world’s reserve currency when of course it is not equal to the demands of that esteemed role. The U.S. government does this by trying to keep the gold price low, but this is an impossible task. In the end, gold always wins — that is, its price inevitably climbs higher as fiat currency is debased, which is a reality understood and recognized by government policymakers.

So recognizing the futility of capping the gold price, they instead compromise by letting the gold price rise somewhat, say, 15 percent per year. In fact, against the dollar, gold is actually up 16.3 percent per year on average for the last eight years. In battlefield terms, the U.S. government is conducting a managed retreat for fiat currency in an attempt to control gold’s advance.

Though it has let the gold price rise, gold has risen by less than it would in a free market because the purchasing power of the dollar continues to be inflated and because gold remains so undervalued notwithstanding its annual appreciation this decade.

These gains started from gold’s historic low valuation in 1999. Gold may not be as good a value as it was in 1999 but it nevertheless remains extremely undervalued.

For example, until the end of the 19th century, approximately 40 percent of the world’s money supply consisted of gold, and the remaining 60 percent was national currency. As governments began to usurp the money-issuing privilege and intentionally diminish gold’s role, fiat currency’s role expanded by the mid-20th century to approximately 90 percent. The inflationary policies of the 1960s, particularly in the United States, further eroded gold’s role to 2 percent by the time the last remnants of the gold standard were abandoned in 1971.

Gold’s importance rebounded in the 1970s, which caused Volcker to lament the so-called mistakes of policymakers. Its percentage rose to nearly 10 percent by 1980. But gold’s share of the world money supply thereafter declined, reaching about 1 percent in 1999. Today it still remains below 2 percent.

From this analysis it is reasonable to conclude that gold should comprise at least 10 percent of the world’s money supply. Because it is nowhere near that level, gold is undervalued.

So given the ongoing dollar debasement being pursued by U.S. policymakers, keeping gold from exploding upward to a true free-market price is the first thing they gain from their interventions in the gold market. The other thing they gain is time. The time they gain enables them to keep their fiat scheme afloat so they can benefit from it, delaying until some future administration the scheme’s inevitable collapse.

So how does the U.S. government manage the gold price?

They recruit Goldman Sachs, JP Morgan Chase, and Deutsche Bank to do it, by executing trades to pursue the U.S. government’s aims. These banks are the gold cartel. I don’t believe that there are any other members of the cartel, with the possible exception of Citibank as a junior member.

The cartel acts with the implicit backing of the U.S. government, which absorbs all losses that may be taken by the cartel members as they manage the gold price and which further provides whatever physical metal is required to execute the cartel’s trading strategy.

How did the gold cartel come about?

There was an abrupt change in government policy around 1990. It was introduced by then-Federal Reserve Chairman Alan Greenspan to bail out the banks back then, which, as now, were insolvent. Taxpayers were already on the hook for hundreds of billions of dollars to bail out the collapsed “savings and loan” industry, so adding to this tax burden was untenable. Greenspan therefore came up with an alternative.

Greenspan saw the free market as a golden goose with essentially unlimited deep pockets, and more to the point, saw that these pockets could be picked by the U.S. government using its tremendous weight, namely, its financial resources for timed interventions in the free market, combined with its propaganda power by using the news media. In short, it was easier to bail out the insolvent banks back then by gouging ill-gained profits from the free markets instead of raising taxes.

Banks generated these profits through the Federal Reserve’s steepening of the yield curve, which kept long- term interest rates relatively high while lowering short- term rates. To earn this wide spread, banks leveraged themselves to borrow short-term and use the proceeds to buy long-term paper. This mismatch of assets and liabilities became known as the carry trade.

The Japanese yen was a particular favorite to borrow. The Japanese stock market had crashed in 1990 and the Bank of Japan was pursuing a zero-interest-rate policy to try reviving the Japanese economy. A U.S. bank could borrow Japanese yen for 0.2 percent and buy U.S. T-notes yielding more than 8 percent, pocketing the spread, which did wonders for bank profits and rebuilding the bank capital base.

Gold also became a favorite vehicle to borrow because of its low interest rate. This gold came from central bank coffers, but central banks refused to disclose how much gold they were lending, making the gold market opaque and ripe for intervention by central bankers making decisions behind closed doors. The amount lent by central banks has been reliably estimated in various analyses published by GATA as between 12,000 and 15,000 tonnes, nearly half of total central bank gold holdings and four to six times annual gold mine production of 2,500 tonnes. The banks clearly jumped feet first into the gold carry trade.

The carry trade was a gift to the banks from the Federal Reserve, and all was well provided that the yen and gold did not rise against the dollar, because this mismatch of dollar assets and yen or gold liabilities was not hedged. Alas, both gold and the yen began to strengthen, which, if allowed to rise high enough, would force marked-to-market losses on those carry-trade positions in the banks. It was a major problem because the losses of the banks could be considerable, given the magnitude of the carry trade.

So the gold cartel was created to manage the gold price, and all went well at first, given the help it received from the Bank of England in 1999 to sell half of its gold holdings. Gold was driven to historic lows, as noted above, but this low gold price created its own problem. Gold became so unbelievably cheap that value hunters around the world recognized the exceptional opportunity it offered and demand for physical gold began to climb.

As demand rose, another more intractable and unforeseen problem arose for the gold cartel.

The gold borrowed from the central banks had been melted down and turned into coins, small bars, and monetary jewelry that were acquired by countless individuals around the world. This gold was now in “strong hands,” and these gold owners would part with it only at a much higher price. So where would the gold come from to repay the central banks?

While the yen is a fiat currency and can be created out of thin air by the Bank of Japan, gold is a tangible asset. How could the banks repay all the gold they borrowed without causing the gold price to soar, worsening the marked-to-market losses on their remaining positions?

In short, the banks were in a predicament. The Federal Reserve’s policies were debasing the dollar, and the “canary in the coal mine” was warning of the loss of purchasing power. So Greenspan’s policy of using interventions in the market to bail out banks morphed yet again.

The gold borrowed from central banks would not be repaid after all, because obtaining the physical gold to repay the loans would cause the gold price to soar. So beginning this decade, the gold cartel would conduct the government’s managed retreat, allowing the gold price to move generally higher in the hope that, basically, people wouldn’t notice. Given gold’s “canary in a coal mine” function, a rising gold price creates demand for gold, and a rapidly rising gold price would worsen the marked-to- market losses of the gold cartel.

So the objective is to allow the gold price to rise around 15 percent per year while enabling the gold cartel members to intervene in the gold market with implicit government backing in order to earn profits to offset the growing losses on their gold liabilities. The gold cartel’s trading strategy to accomplish this task is clear. The gold cartel reverse-engineers the black-box trend-following trading models.

Just look at the losses taken by some of the major commodity trading managers on their gold trading over the last decade. It is hundreds of millions of dollars of client money lost, and the same amount gained for the gold cartel to help offset their losses from the gold carry trade — all to make the dollar look good by keeping the gold price lower than it should be and would be if it were allowed to trade in a market unfettered by government intervention.

As I see it there are only two outcomes. Either the gold cartel will fail or the U.S. government will have destroyed what remains of the free market in America. I hope it is the former, but the flow of events from Washington and the actions of policymakers suggest it could be the latter.

-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 TUESDAY 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: 6.9107/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.9254   /shanghai bourse CLOSED UP 17.53 POINTS OR 0.61%

HANG SANG CLOSED UP 102.72 POINTS OR 0.38%

 

2. Nikkei closed UP 77.56 POINTS OR 0.37%

 

 

 

 

3. Europe stocks OPENED MIXED /

 

 

 

USA dollar index RISES TO 97.77/Euro FALLS TO 1.1190

3b Japan 10 year bond yield: FALLS TO. –.07/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 109.37/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 59.07 and Brent: 70.08

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.15%/Italian 10 yr bond yield DOWN to 2.71% /SPAIN 10 YR BOND YIELD DOWN TO 0.83%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.86: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 3.19

3k Gold at $1284.20 silver at: 14.50   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 28/100 in roubles/dollar) 64.53

3m oil into the 59 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 109.37 DESTROYING JAPANESE CITIZENS WITH HIGHER FOOD INFLATION

30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning 1.0051 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1248 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 0.15%

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 2.29% early this morning. Thirty year rate at 2.72%

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

6.  TURKISH LIRA:  UP  TO 6.0371..they are toast

 

Treasury Yields Plunge To 19 Month Low As Italian Budget Crisis Returns With A Bang

US equity futures, European stocks the the euro all fell on Tuesday as renewed concern about a fresh clash between Italy’s and Europe over the country’s budget overshadowed talks of a Fiat-Chrysler and Renault merger and EU parliamentary elections which failed to result in a worst-case scenario.

After gains in Asia, hopes that European stocks would open higher were dashed, with Italian shares falling more than half a percent, unwinding early gains in both the STOXX 600 and Germany’s DAX, as Italy’s dispute with the European Commission emerged to dominate European trading as markets opened. The Commission could fine Italy 3 billion euros for accumulating debt and deficits that break EU rules, Italian Deputy Prime Minister Matteo Salvini said on Tuesday. 

“It reopens the whole agenda of whether Salvini wants to be part of the euro or not,” said Colin Harte, a portfolio manager and strategist at BNP Paribas Asset Management. “The danger is that the [dispute between Salvini and the EU] turns out to be more aggressive on both sides, then you will see people switch out of positions],” Harte said.

Renewed focus on Italy means that the spread between Italian and German 10-year debt, which reached around 100 bps between mid-October and mid-March, has blown out to 285 basis points. And as Italian 10Y yield slumped, Italian bank stocks have tumbled to 2018 lows, although on Tuesday they trimmed some losses after European Commissioner Pierre Moscovici said he didn’t favor sanctions for the country.

German government bond yields, deemed the region’s safest asset, fell four basis points to a two-and-a-half-year low. The euro weakened 0.11% against the dollar.

Meanwhile, the ongoing trade war between the US and China found no respite over the long weekend, with Trump saying on Monday that Washington was not ready to make a deal with China, but he expected one in the future. At the same time, he pressed Japanese Prime Minister Shinzo Abe to reduce Japan’s trade imbalance with the United States. The US president also warned that American tariffs on goods from China “could go up very, very substantially, very easily,” while over the weekend the Asian nation pushed back at the perception that the levies were hurting its economy. Escalating trade tensions have sent sovereign bonds higher and pushed global stocks toward their first monthly decline of 2019.  In the US, 10Y Treasury Yields tumbled to 2.271%, the lowest level since October 2017 suggesting an accelerating flight to safety.

Hope for a US-China trade deal still underpins optimism in global markets, but ES futures were down almost 0.25%, taking out Monday’s holiday lows. “Markets are holding their nerve and will start to attach great hope to the meeting between Presidents Xi and Trump in June,” said BNP Paribas’s Harte. “But I’m not as convinced that Trump wants a deal. The big risk is that the U.S. starts being disruptive to supply chains … and the big problem is we don’t really understand how much damage this will do.”

“The Sino-U.S. tensions continue to weigh on equity markets,” said State Street strategist Benjamin Jones. “Thus far, there seems to be little sign of an easing in those pressures on either side of the fence.”

Earlier in the session, Asian stocks advanced for a third day, lifted by advances in China and gains by auto firms after Fiat Chrysler made a “transformative merger” proposal to French peer Renault. Auto stocks rose globally after Fiat Chrysler confirmed it had made proposed a merger with Renault, a deal that would create the world’s third-biggest carmaker. The rally spilled into Asia with Mitsubishi Motors in Japan adding 5.95% and Nissan Motor Co gaining 2.31%.

Otherwise, Asian markets were mixed, with China and Australia rising and Indonesia retreating. Japan’s Topix gauge climbed 0.3%, driven by Toyota Motor and Hitachi. The Shanghai Composite Index closed 0.6% higher, with Foshan Haitian Flavouring and SAIC Motor offering the biggest boosts. A planned increase in the weighting of Chinese A-shares in MSCI indexes after the market closes on Tuesday also boosted shares.

In FX, the dollar index which tracks the U.S. currency against a basket of six other major currencies, rose 0.15% higher at 97.747. The pound whipsawed on two-way flows as traders focused on the race for the next U.K. Prime Minister, while the euro slipped alongside Italian banks and bonds amid concerns of a renewed budget spat with the EU. The yen led gains among G-10 currencies.

The Yuan was largely unchanged after PBoC Governor Yi Gang said he is confident that China can keep the Yuan “basically stable”; the benchmark deposit rate will continue to play a important role in the promotion of market-based interest rate reform; the current benchmark lending and deposit rate is at an appropriate level. And the Chinese – US 10yr yield gap is within a relatively comfortable range. Separately, reported that the PBoC are to increase counter cyclical adjustments, Deputy Chief reiterates they are to maintain a prudent monetary policy.

In commodities, West Texas crude oil nudged above $59 a barrel. Oil prices extended gains after rising more than 1% on Monday, with prices rising on tensions in the Middle East and continuing Russian supply disruptions after a contamination problem discovered last month. Brent crude was 0.29% higher at $70.31 per barrel, having earlier dipped below the $70 mark. WTI crude gained 1.16% to $59.31 per barrel.

Economic data include S&P CoreLogic Case-Shiller home prices, Dallas Fed manufacturing and consumer confidence. Workday and Bank of Nova Scotia are due to report earnings.

Market Snapshot

  • S&P 500 futures down 0.2% to 2,826.25
  • STOXX Europe 600 down 0.4% to 375.17
  • MXAP up 0.3% to 153.81
  • MXAPJ up 0.1% to 500.30
  • Nikkei up 0.4% to 21,260.14
  • Topix up 0.3% to 1,550.99
  • Hang Seng Index up 0.4% to 27,390.81
  • Shanghai Composite up 0.6% to 2,909.91
  • Sensex down 0.2% to 39,618.71
  • Australia S&P/ASX 200 up 0.5% to 6,484.84
  • Kospi up 0.2% to 2,048.83
  • German 10Y yield fell 1.5 bps to -0.159%
  • Euro down 0.04% to $1.1189
  • Brent Futures up 0.01% to $70.12/bbl
  • Italian 10Y yield rose 12.1 bps to 2.304%
  • Spanish 10Y yield fell 2.4 bps to 0.79%
  • Brent Futures up 0.04% to $70.15/bbl
  • Gold spot down 0.07% to $1,284.49
  • U.S. Dollar Index up 0.1% to 97.75

Top Headlines from Bloomberg

  • The Chinese government’s first seizure of a bank in more than two decades reverberated through markets for a second day, driving up funding costs for smaller lenders and adding pressure to shares that already trade at rock-bottom valuations
  • Italian bonds declined and yields jumped for a second day as investors faced the prospect of a new budget standoff between the nation and the EU after the region’s elections strengthened the hand of Deputy Prime Minister Matteo Salvini. The bonds pared losses after EU Commissioner for Economic and Financial Affairs Pierre Moscovici played down talk of sanctions
  • Labour leader Jeremy Corbyn grudgingly promised to support a referendum on any Brexit deal after his party sank to just 14% of the vote in the European election. Leading Conservatives competing to replace Theresa May as prime minister said their party’s near wipe-out in the poll showed voters wanted them to get on and leave the EU
  • French President Emmanuel Macron will push chief Brexit negotiator Michel Barnier as his choice to lead the European Commission, as leaders meet Tuesday in Brussels to begin the jostling to fill the bloc’s leadership spots. Italy will seek a seat on the European Central Bank’s Executive Board, according to a senior lawmaker in the coalition government
  • Alibaba Group Holding Ltd. is considering raising $20 billion via a second listing in Hong Kong after a record-breaking 2014 New York debut. The mega-deal will bring China’s largest company closer to investors at home as U.S. tensions escalate
  • Euro-area economic confidence unexpectedly improved in May, snapping an almost yearlong streak of declines when the region was battling through a host of struggles

Asian equity markets were mostly higher but with gains capped as trade slowly picked up from the holiday lull in the US and UK. ASX 200 (+0.5%) was positive with the gains led by the tech sector and as miners cheered the recent upside in commodities including Chinese benchmark iron ore prices which hit record highs. Nikkei 225 (+0.4%) was underpinned by corporate news flow with Tokyo Electron lifted from a JPY 150bln buyback, while Nissan and Mitsubishi Motors gained following the recent merger proposal between alliance partner Renault and Fiat. Hang Seng (+0.4%) and Shanghai Comp. (+0.6%) gained following a substantial liquidity injection of CNY 150bln by the PBoC which placed the ongoing trade uncertainty on the back seat. 10yr JGBs were steady as they mirrored the sideways trade in T-note futures although saw mild support following the results from the 40yr JGB auction where the b/c was firmer than previous and as 40yr yields hit their lowest levels since September 2016.

Top Asian News

  • China’s First Bank Seizure in 20 Years Spooks Investors
  • Nomura Penalized by Regulator After Market Information Leaked
  • India Has Political Space to Do Difficult Tasks to Spur Economy
  • China Stock Surge Can Repeat as MSCI Boosts Weighting

A downbeat session thus far for European equities [Eurostoxx 50 -0.6%] as the region failed to capitalise on the positive momentum seen in Asia. Most major European bourses are experiencing broad-based losses although Italy’s FTSE MIB (-0.9%) underperforms as banking names are weighed on by the decline in BTPs, whilst the UK’s FTSE (Unch) is supported by heavyweight mining names (Rio Tinto +3.2%, BHP +1.8%, Antofagasta +2.2%) profiting from the surge in iron ore price. Thus, the sector is outperforming whilst most of the other sectors are posting broad-based losses. In terms of individual movers, Renault (+0.7%) shares are higher in a continuation of yesterday’s rise due to a potential Renault-Fiat Chrysler merger. Richemont (-0.6%) and Swatch (-0.8%) are subdued amid a Swiss watch export decline of 0.4% Y/Y. Finally, Thyssenkrupp (+3.2%) rose to the top of the DAX amid a rise in steel prices. In terms of some analysis from Nomura Quant, amongst major hedge funds, macro funds are tilting short equities, with overall sentiment on US-China trade discussions on a gradual downtrend. Whilst some short-lived rallies may yet come, little optimism is seen on the immediate horizon, and it is unlikely hedge funds and CTAs will be convinced to return to buying. “It also looks likely to us that CTAs will go back to closing out long positions in NASDAQ 100 futures and S&P 500 futures starting today” says Nomura.

Top European News

  • Italy Risks $4 Billion EU Penalty Over Failure to Rein in Debt
  • Italy Seeks ECB Board Seat as League Urges ‘Infrastructure QE’
  • Swiss Economy Bounces Back With Growth Surge at Start of 2019
  • Turkish Stocks Rally as Country Hints at Russian Missile Delay

In FX, the dollar remains off recent key day reversal or retracement lows, but the DXY is still struggling to regain sufficient momentum for an attempt to revisit 98.000 and 2019 peaks reached only last Thursday (98.373). However, in a twist to normal month end trends, equity rebalancing flows may be Dollar supportive this week as at least one preliminary model is signalling a net buy, and especially strong against Sterling vs relatively weak demand against the Yen.

  • JPY/NOK/SEK – The clear G10 outperformers as Usd/Jpy retreats from 109.50+ highs to test support ahead of 109.00 at a 109.23 Fib amidst a broad downturn in risk sentiment, while the Scandi Crowns continue to derive encouragement from last week’s stellar unemployment developments rather than less upbeat sentiment indicators today. Indeed, Eur/Nok has had a look at 9.2000 ahead of a key downside technical level in the form of the 100 DMA (9.7190), with extra impetus from higher Norwegian oil investment forecasts, while Eur/Sek is back below 10.7000 and has been under 10.6750.
  • NZD/AUD – The next best majors as the Kiwi holds above 0.6500 vs its US counterpart awaiting the latest RBNZ Financial Stability Report due tomorrow and the Aussie maintains 0.6900+ status ahead of next week’s RBA policy meeting with a 25 bp rate cut all but totally priced in. On that note, Aud/Usd may well be capped by macro offers
  • CAD/GBP/CHF – All slightly softer vs the Greenback, as the Loonie pivots 1.3450 and trades cautiously into Wednesday’s BoC (full preview available on the Ransquawk Research Suite), while the Pound hovers closer to the base of a 1.2700-1.2655 range in the fall-out from last week’s formal notice of resignation from UK PM May and the weekend EU Parliamentary elections, and with the aforementioned end of May Cable signals hardly helping. In similar vein, the Franc has not been able to glean much, if any traction from much stronger than forecast Swiss GDP, as the Government was quick to caution that one-off factors impacted favourably in Q1 and it would not be raising its full year growth forecast on the back of a bumper first quarter, while April’s trade surplus was smaller than expected. Usd/Chf is firmly above recent lows within a tight 1.0050-35 band and Eur/Chf is also looking more solid on the 1.1200 handle between 1.1245-25 vs sub-big figure levels last week.
  • EUR – As noted above, the single currency has rebounded off worst levels vs the Franc despite the return of Italian/EU fiscal tensions, and the Euro is also displaying a degree of resilience against the Dollar within 1.1176-1.1200 trading parameters, albeit not convincingly through 30 DMA resistance (1.1196) or beyond 1.1200 to challenge a Fib at 1.1215.
  • EM – Another marginal move up in the Usd/Cny fix overnight still leaves the spread to Usd/Cnh on a wider trajectory, but the former could be set higher in wake of the PBoC’s move to raise its counter cyclical ‘adjustments’. Elsewhere, the Try has finally reaped some benefit from Monday’s CBRT hike in the RRR, but Turkey is still embroiled in geopolitical and diplomatic conflicts that could see the Lira lurch again.

In commodities, WTI and Brent futures have been relatively resilient to the risk aversion around the market with the former hovering above USD 59/bbl and the latter around USD 70.50/bbl. Of note, there was no WTI settlement yesterday and thus there is a deviation in price change between the two benchmarks. Nevertheless, WTI’s discount to Brent has been gaining more focus, with the WTI/Brent Arb now almost USD -11/bbl. The widening spread is attributed to US stockpiles building keeping WTI subdued, whilst Brent is supported by the Russian oil contamination. Analysts at RBC highlight that physical markets are tight, and inventories are piling up despite the backwardated term structure. “We do not interpret the recent increases as entirely bearish given that the majority of builds from the US to consuming Asia have been deliberate and tactical which has, in turn, kept markets tight” RBC says. Meanwhile, gold (Unch) is flat on the day, but the yellow metal nursed some of its overnight losses as the risk tone deteriorated further, from a technical perspective; immediate levels to the upside include the 50 DMA at 1288.12/oz ahead of the psychological 1290/oz.  Elsewhere, copper remains lacklustre amid the downbeat risk tone, as prices fluctuate on either side of USD 2.70/lb. Finally, Dalian iron ore prices spiked to record highs amid ongoing supply concerns and with stockpiles around 2yr lows.

US Event Calendar

  • 9am: House Price Purchase Index QoQ, prior 1.1%
  • 9am: FHFA House Price Index MoM, est. 0.2%, prior 0.3%
  • 9am: S&P CoreLogic CS 20- City MoM SA, est. 0.5%, prior 0.2%; YoY NSA, est. 2.55%, prior 3.0%
  • 10am: Conf. Board Consumer Confidence, est. 130, prior 129.2
  • 10:30am: Dallas Fed Manf. Activity, est. 5.8, prior 2

DB’s Jim Reid concludes the overnight wrap

By the time you read this I’ll have just taken off for a work trip to Madrid precisely 4 days too early given this weekend’s Champions League final in this city. Unless I find a ticket lying on the floor whilst walking the streets I won’t be going on Saturday. Instead it’s nice to get away after a hard bank holiday weekend. My last google search of the long weekend was “are there pre-schools or nurseries that offer boarding?”. The twins are hard work and into everything but at least they seem to get into trouble together as they follow each other around everywhere. However 3.75 year old Maisie is so demanding. The long weekend basically involved her jumping all over me (often at speed), asking to be spun round all the time (often at speed), to be pushed on the swings (again at speed) and then clinging onto my leg or jumping on my back whenever I tried to do something else. I’m exhausted. To the younger readers please don’t have children in your 40s or beyond. You’ll be exhausted!!!

While I was being beaten up yesterday it was all about Europe with the US and UK on hols.Markets held up relatively well but there was lots to digest in terms of the European Parliament elections and also fresh worries about Italy/EU tensions. The main market highlight of the day was seeing 10yr BTPs rise 12bps to 2.67% while 10yr Bunds fell -2.8bps to -0.147% – the lowest for 3 years and only around 4bps off the all time closing lows. The EP elections in Italy were pretty much in line with forecasts but it was news from Bloomberg that the EU commission is considering a €3.5bn fine for Italy due to their ongoing debt issues that encouraged the bulk of the sell-off. The EU have a regular budgetary meeting next week and there was talk in the article that the next steps towards a fine could come at this meeting. The FTSE-MIB earlier greeted news that Salvini had extended his power base (34% vote vs. 17% in 2018 – with the M5S at 17% down from 33% in 2018) positively and was c.+1.5% just after the open. However it fell after the fine story and closed -0.06% lower with the Stoxx +0.22% as autos climbed after Fiat Chrysler’s proposed merger with Renault was announced over the weekend. Back to Italy and from listening to Salvini talk post elections it doesn’t seem he’s prepared to back down on his views and said taxes won’t be raised and that the EU has to listen to voters. He seems emboldened by a firmer mandate post the EP elections. Interesting times ahead for Italy vs the EU.

For DB’s take on the European wide elections see the piece here from Kevin Koerner. The results were broadly inline with expectations. Populists and anti-establishment parties are continuing to build support without landing knock-out blows. As Kevin writes, “the “grand coalition” of conservatives (EPP) and social democrats (S&D) has lost its traditional absolute majority in the next European Parliament. Together with the liberals and greens, pro-European groups will still hold a clear majority of two-thirds of the seats in the next EP. But policymaking for them will likely become more complex and require broader cross-party agreements and discipline.” A lot depends on the alliances formed over the next few weeks and months. As for the UK, the Brexit party – which is weeks old – stormed the polls with nearly 32%. The second referendum backing Liberals were second with around 20%. Labour were third with c.14%, the Greens fourth were c.12% with the ruling Tories in a shockingly bad 5th at c.9%. What it basically shows is that the UK in still split down the middle in terms of Brexit but the “leave” vote more focused to one party than the “remain” vote. In general election terms where its first past the post you can’t help thinking that it would be easier for the Tories to get to nearer 40% in moving to a harder Brexit policy than it would be for the Labour Party moving to a remain policy as the remain vote is a bit more spread out across parties. Again interesting times. Meanwhile, Labour leader Jeremy Corbyn promised yesterday to support a referendum on any Brexit deal after the results (per Bloomberg). Elsewhere, writing for the Telegraph, the UK Foreign Secretary Jeremy Hunt – who is standing for leader – warned that any Prime Minister who tries to take Britain out of the EU without a deal will likely trigger a general election first which risks the “extinction” of the Conservative Party. Sterling is trading relatively flat (-0.04% to 1.2674) this morning.

This morning in Asia markets are largely up with the Nikkei (+0.43%), Hang Seng (+0.50%), Shanghai Comp (+0.89%) and Kospi (+0.10%) all higher. China’s onshore yuan is down -0.17% to 6.9093. Elsewhere, futures on the S&P 500 are up +0.22% while 10y UST yields are down -1.4bps to 2.307%. In terms of overnight data releases, Japan’s April services PPI came in at +0.9% yoy (vs. +1.1%yoy expected).

As discussed at the top, at the end of last week we updated our credit spread forecasts after the team held a mid-week round table discussion which we wrote up. We’ve been tactically bullish on credit since November 2018 but previously expected this positive momentum to turn in H2. However US President Trump’s May 5th tweet has changed the landscape somewhat and as I’ve been discussing in the EMR since, risk off continues to be the most likely outcome now. We have conducted these round table exercises on numerous occasions over recent times and its fair to say that this was the meeting where there were perhaps the most divergent views within the team which perhaps speaks to the high level of uncertainty there is at the moment about the recent trade war escalation and also where we are in the cycle. I was probably most bearish as I think we bracing ourselves for a summer sell-off as both the US and China are now entrenched enough in their views that it would be difficult for them to back down without substantial external pressure. The war of words has been worse than it was in 2018 and national pride also seems to be at stake now.

The substantial pressure that might be needed to focus minds can likely only come from the markets or economic activity falling sharply. Given that the direct impact of the recent rise in US tariffs on Chinese imports is going to be minimal then the pressure is most likely to come from markets and financial conditions tightening. By the middle of June the public consultation on tariffs on the last $300bn of Chinese imports into the US will end. This final round of goods has the most potential to be damaging to the US and global economy and as such the subsequent decisions on whether to impose tariffs is going to be very important and lead us into a higher risk period for markets.

The base case for me is that continued market pressure eventually leads to a resolution, or a truce at least, and that markets will recover, and the fact that this trade spat will likely continue to keep central banks dovish, could continue to extend this cycle a little further than I thought maybe 6 months ago. As such my (and the team’s) YE forecast are not as bearish for H2 as they were at the start of the year. For me the most important lead indicator of the US cycle remains the 2s10s yield curve(see “ Yield Curve 101 ” for why) and this has remained in a tight range over the last 6 months (mostly between +14bps to +20bps) and has struggled to flatten further since the Powell u-turn in January. Ahead of the last 9 recessions this measure of the curve has always inverted beforehand with the earliest inversion to recession timing being 8 months and the average being nearer 12-18 months. So I think we still have a minimum of 12 months left in this US cycle (outside of a complete and sudden meltdown in global trade) but my confidence of an extended cycle beyond that is low given we’re close to an inversion and with other indicators we have previously discussed suggesting we are quite late cycle (see our note ” The second longest US cycle on record.. and when it might end.. “).So in conclusion unless the US or China back down quickly, I think markets will test their resolve this summer and we’ll have a notable risk-off moment. Assuming this brings some kind of resolution, then YE spreads will all be about where we are in the cycle. I think we’re late cycle but dovish central banks have perhaps bought us a little more time than I thought at the start of the year. See the note ( link ) for the latest spread forecasts and rationale from each member of the team and the aggregated forecasts.

As for the rest of this week, trade will continue to grab the headlines but in this holiday shortened week (US, UK yesterday, parts of Europe on Thursday) the main data releases in the US are the second reading of Q1 GDP (Thursday), the latest PCE inflation data (Friday) and various surveys which will likely capture the trade war period, while in Europe the preliminary CPI readings (Friday) will be closely watched, as will China’s official PMIs on Friday.

The surveys this week will be of greater interest than normal given the recent trade escalations. The ones worth looking out for include the May US consumer confidence report today and the May manufacturing surveys from the Dallas Fed on Tuesday and Richmond Fed tomorrow, and the May Chicago PMI on Friday. In Europe there will also be a close eye on the various confidence indicators today and then the preliminary May CPI reports out of France (tomorrow), Spain (Thursday), Germany and Italy (Friday). A full rest of the week ahead is at the end.

Turning back to last week briefly now for those that were on holiday yesterday. The trading session on Friday was pretty quite calm with many leaving early for the long weekend. Equity trading volumes in the US were 25-33% below normal ahead of the holiday, though markets did advance after a softer week. Economic data was again on the soft side,with US capital goods orders falling short of expectations. Attention focused on UK PM May’s resignation, though it didn’t really have immediate macro or market implications as there has been a growing inevitability about it.

The S&P 500 ended the week -1.17% lower (+0.14% on Friday) with the tech sector again leading losses. That was the third consecutive weekly decline for the headline index, the first such streak since December. The NASDAQ dipped -1.41% (+0.11% Friday), though the real pain was again concentrated in semiconductors, with the Philly semis index -6.4% lower (-0.82% Friday). The DOW outperformed slightly, falling only -0.69% (+0.37% Friday). Treasury yields fell -7.1bps (+0.2bps Friday) and the yield curve continued to flatten, with the 2y10y back down another -3.5bps (-1.4bps Friday) to 15.4bps.

Yields in Europe fell less, with bunds ending -1.3bps lower on the week. Perversely however, European bank stocks underperformed versus their American peers, with the Stoxx Banks index ending the week -4.40% (+0.45% Friday) versus the S&P 500 banks index -0.37% (+1.09% Friday). The headline STOXX index was -1.47% lower (+0.56% Friday), with the Italian FTSE MIB lagging -3.46% (+1.19% Friday) notwithstanding some stocks going ex-div. Nevertheless, BTP yields fell -10.7bps (-8.4bps Friday), helped by Northern League leader Salvini’s comments apparently expressing a willingness to compromise on fiscal targets. This looks a bit out of date after yesterday’s move and rhetoric. The euro advanced +0.40% (+0.20% Friday) as the dollar retreated -0.39% (-0.16% Friday).

end

3. ASIAN AFFAIRS

i)TUESDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED UP 17.53 POINTS OR 0.61%  //Hang Sang CLOSED UP 102.72 POINTS OR 0.38%   /The Nikkei closed UP 77.56 POINTS OR 0.37%//Australia’s all ordinaires CLOSED UP 0.64%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9107 /Oil DOWN TO 59.07 dollars per barrel for WTI and 70,08 for Brent. Stocks in Europe OPENED MIXED/ONSHORE YUAN CLOSED DOWN // LAST AT 6.9107 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9254 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/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 /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

3 a NORTH KOREA/SOUTH KOREA

SOUTH KOREA

end

3 b JAPAN AFFAIRS

3 C CHINA/CHINESE AFFAIRS

i)China/USA//Saturday

In the next trade war between China and the uSA, the commerce department is targeting more tariffs against China for currency manipulation.  And not only that, they are targeting other countries as sell

 

(courtesy zerohedge)

4/EUROPEAN AFFAIRS

UK

Tom Luongo discusses how Farge has taken down another Tory Government and what to expect next in this saga whereby Eurocrats have no interest in the will of the people

(courtesy Tom Luongo/)

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

IRAN/USA

Again the rhetoric increases as Iran is now touting “secret weapons” capable of sinking USA warships.  This is in reaction to further troop deployment

(courtesy zerohedge)

Iran Touts “Secret Weapons” Able To “Sink US Warships” In Reaction To Troop Deployment

Iranian leaders have reacted to Friday’s US announcement for a planned new deployment of 1,500 troops to the Middle East to monitor threats from Iran after the Pentagon specifically blamed Tehran for ordering attacks on a Saudi oil pipeline and four tankers near the Strait of Hormuz — an order which US officials said came from “the highest level”.

Foreign Minister Mohammad Javad Zarif on Saturday slammed the new deployment as “extremely dangerous… for international peace,” according to state news agency IRNA . “Increased U.S. presence in our region is extremely dangerous and it threatens international peace and security, and this should be addressed,” Zarif said.

 

The USS Abraham Lincoln performing a high-speed turn, via US Navy video.

And separately a top Iranian military general touted “secret weapons” that are capable of sinking US warships in the Persian Gulf.

According to Reuters, citing the semi-official news agency Mizan, General Morteza Qorbani, an adviser to Iran’s military command, issued the following threat:

America… is sending two warships to the region. If they commit the slightest stupidity, we will send these ships to the bottom of the sea along with their crew and planes using two missiles or two new secret weapons.

Currently the USS Abraham Lincoln carrier strike group is operational in the region, along with B-52 bombers out of Qatar, and patriot missile batteries.

Other than Iran’s arsenal of long-range ballistic missiles, underwater drone capabilities, and most notably recent claims of a domestic built stealth destroyer and a fleet of small stealth submarines, it is unclear what these “new secret weapons” could be, if they exist at all.

Last December Iran unveiled its first stealth destroyer in a televised ceremony wherein the warship was launched into operation in the Persian Gulf at a moment when tensions with the US were ratcheting up over new rounds of sanctions.

 

The Sahand has stealth capabilities, surface-to-surface and surface-to-air missiles and electronic warfare capabilities, state TV IRNA reported of the ship’s launch late last year. 

We noted Friday of the newly ordered 1,500 force deployment that given the original Pentagon plan reportedly pitched a total troop deployment of up to 10,000 additional forces to counter Iran in the Middle East, Trump’s agreeing to a much humbler 1,500 appears a meager attempt to merely pacify the hawks without actually changing the playing field significantly. Or rather, to put up the pretense and appearance of “doing something” without actually substantively escalating at all.

The president himself seemed to all but admit this in passing remarks to reporters as he left the White House for a trip to Japan: “We want to have protection in the Middle East. We’re going to be sending a relatively small number of troops, mostly protective,” Trump said. “Some very talented people are going to the Middle East right now. And we’ll see what happens,” he added.

However, troop build-up in the region to any degree could prove explosive and extremely dangerous for the prospect of a broader conflagration, considering both the IRGC’s recent terror designation, as well as Iran ally Syria coming under new chemical weapons scrutiny over fresh claims it used poison gas in a battle near Idlib on Sunday.

end

IRAN/USA

Now the USA after promising a 1500 troop deployment is now sending a dozen fighter jets and a drone fleet.  The USA is engaging in this due to an escalating campaign by Iran

(courtesy zerohedge)

Dozen Fighter Jets & Drone Fleet Sent To Counter “Escalating Campaign By Iran”

Along with the newly announced Pentagon deployment of 1,500 troops to the Middle East in order to counter “an escalating campaign by Iran” the US is sending a dozen fighter jets to provide aerial support, the AP reports. This after defense officials for the first time laid explicit blame on Iran’s leaders during statements Friday for allegedly ordering attacks on a Saudi oil pipeline and four tankers near the Strait of Hormuz. 

And in a move that’s most certainly related, the White House also on Friday steamrolled Congress to approve $8 billion in arms sales to the UAE and Saudi Arabia and expedite delivery, invoking a rarely used provision of American arms control laws to bypass lawmakers and approve the weapons sales, citing the escalating tensions with Iran as justification. All of this, combined with Iran’s key regional ally Syria coming under new chemical weapons scrutiny over fresh claims it used poison gas in a battle near Idlib a week ago, suggests we could be headed toward a major new proxy war in the Middle East.

 

Images: Getty via Daily Express

The AP tallied the fresh deployments to join the already in the region USS Abraham Lincoln carrier strike group and four B-52 bombers as follows:

The deployments announced Friday include a squadron of 12 fighter jets, manned and unmanned surveillance aircraft, and a number of military engineers to beef up protection for forces. In addition a battalion of four Patriot missile batteries that was scheduled to leave the Middle East has been ordered to stay. The total number of troops involved is about 1,500, with roughly 600 included in the Patriot battalion. None of those troops will go to either Iraq or Syria.

This suggests the troops could be placed at US or allied bases along the Persian Gulf, in places like the UAE, Qatar, or even possibly Saudi Arabia — something the Saudis have recently said they’d be open to in support of anti-Iran operations.

The newly announced 1,500 troop deployment appears peanuts, however, compared to the already about 70,000 US military personnel currently present in the region. The AP report summarizes further:

The U.S. has about 70,000 troops across the Middle East, including at a major Navy base in Bahrain and an Air Force base and operations center in Qatar. There are about 5,200 troops in Iraq and 2,000 in Syria.

President Trump himself seemed to all but admit the latest build-up is mostly symbolic as a fear-inducing tactic in passing remarks to reporters on his way to Japan Friday: “We want to have protection in the Middle East. We’re going to be sending a relatively small number of troops, mostly protective,” Trump said. “Some very talented people are going to the Middle East right now. And we’ll see what happens,” he added.

Congress has lately tried to reign in Trump’s potential build-up and military action against Iran; however, the president has sent mixed signals: “Right now, I don’t think Iran wants to fight and I certainly don’t think they want to fight with us,” Trump said at the end of this week.

END
LIBYA
After a lull in the fighting, General Hafter seems ready to seize and rip through Tripoli.  He controls the Eastern side of Libya (Benghazi area) and the South.  Once he gets Tripoli which is under UN control, he will have the entire country under his control  He has the backing of the uSAand France
(zerohedge)

Heavy Fighting Rips Through Tripoli As Libya’s Gen. Haftar Renews Offensive

After few week lull in Gen. Khalifa Haftar’s Libya National Army (LNA) advance on Tripoli, fighting has once again ripped through the Libyan capital city, in an ongoing renewed civil war between parallel governments in east and west of the country which has now killed over 500 and pushed 75,000 out of their homes,and has again ramped up the migrant crisis in Europe. 

Reuters reports, “Heavy fighting raged in the Libyan capital on Saturday as eastern forces made a new push to advance inside the city controlled by the internationally recognized government.” The LNA’s new push began Saturday morning in a southern suburb, and continues the siege which began in early April, and has involved tanks, mortars, heavy urban fighting, and warplanes.

 

Recent clashes near Tripoli’s old airport. Image source: Al Jazeera

Gen. Haftar  who solidified control of Eastern Libya over the past two years and swept through the south in January, is seeking full control over Tripoli which would secure his hold of the entire country and its vital oil resources, of which he already controls a major chunk of in the east and south.

He’s long been described by many analysts as the CIA’s man in Libya” — given he spent a couple decades living in exile a mere few minutes from CIA headquarters in Langley, Virginia during Gaddafi’s rule.

Last month, the White House went from a position of nominal support for the UN-backed government in Tripoli (now under attack by Haftar), to openly backing Haftar for the first time. A White House statement said Trump “recognized Field Marshal Haftar’s significant role in fighting terrorism and securing Libya’s oil resources” during a phone call with the “renegade” general.

 

Gen. Khalifa Haftar, head of the Benghazi-based Libya National Army (LNA)

Other countries like France and the UAE are also significant backers of Haftar, with the latter coming under fire for shipping banned weapons to the Libyan warlord. However, awkwardly these and other countries stand against the majority UN recognition of the Government of National Accord (GNA) in Tripoli as the legitimate authority over Libya and its prime minister Fayez al-Sarraj.

Interestingly, Gen. Haftar has just publicly accused the UN of seeking to partition in Libya in condemning his attempts to take the capital. Haftar accused the head of U.N. mission to Libya, Ghassan Salame, of not being impartial, while dismissing proposals for a ceasefire, according to Reuters.

“Partition of Libya is maybe what our adversaries want. This is maybe what Ghassan Salame also wants,” Haftar said.

The Independent

@Independent

Fuelled by outside powers, Libya’s latest war is leaving civilians to suffer@borzou reports pic.twitter.com/u9RPYBdZ1c

Embedded video

However, the reality is that Libya descended into anarchy and warring factions across the four corners of the country the moment of its “liberation” by the US and NATO, which fought a regime change war against Muammar Gaddafi.

The White House has lately cast the conflict brought on by Haftar’s blitz across the country as part of “ongoing counterterrorism efforts” toward the end of achieving “peace and stability in Libya.”

END
TURKEY/SYRIA
Good reason for gold to fall this morning:  Turkey invades Northern Iraq in an attempt to knock out uSA ally Kurds.
I could understand this move if Turkey is a solvent nation but they are not they are insolvent
(courtesy zerohedge

Turkey Invades Northern Iraq In Operation Against Kurdish Militants

Turkey has launched a cross-border operation into neighboring Iraq against Kurdish militants in a mountainous northern region of the country.

The Turkish defense ministry confirmed its military unleashed a barrage of artillery fire and air strikes on Monday afternoon before ground forces entered northern Iraq to “demolish the caves and shelters that are being used by terrorist groups and to eliminate terrorists”  a reference to the outlawed PKK.

“The operation, with the support of our attack helicopters, is continuing as planned,” the statement said further. While cross-border shelling has happened somewhat frequently in the past, Turkey has rarely sent ground troops.

Back in December 2015 when Turkey, claiming to be engaged in counter-ISIS and general counter-insurgency operations, crossed into Iraq with a large ground force then Iraqi Prime Minister Haidar Abadi demanded Turkey cease violating Iraqi sovereignty, in a standoff which proved a major embarrassment for Baghdad.

Turkish state media released video footage of its operation inside Iraq:

Embedded video

TRT World

@trtworld

Turkey launches a counter-terrorism operation dubbed Pence, which means claw in Turkish, in northern Iraq https://www.trtworld.com/article/27052

Not only has Turkey not been bashful about routinely violating the sovereignty of both Iraq and Syria ostensibly to “fight terrorists”, it has often positively boasted about it and published video footage of the incursions.

Citing the defense ministry, Reuters reports the following of the ongoing, controversial operation:

It said the operation targeted Iraq’s Hakurk region, just across the border from Turkey’s southeastern tip, which also borders Iran. The Kurdistan Workers Party (PKK) militant group is based in northern Iraq, notably in the Qandil region to the south of Hakurk.

Video published by the ministry showed helicopters landing commandos on mountainous terrain. It also shared photos showing shells fired by howitzers and soldiers perched on ridges, surveying hillsides with their rifles.

In Syria, Turkey has recently strained its relations with the United States over Washington’s support to the Syrian Democratic Forces (SDF), composed mainly of Kurkdish “People’s Protection Units” (YPG/YPJ), which Ankara sees as but an extension of the “terrorist” PKK.

Turkey’s President Erdogan has repeatedly condemned what he sees as US aid and support to a banned terrorist group, while in recent years American officials have laid blame for the rise of ISIS on Turkey’s well-known and active support to jihadists in northern Syria.

 

END

6.GLOBAL ISSUES

The global auto industry

It sure looks like we have reached peak price for new autos.  During May already a massive 38,000 jobs have been shed

(courtesy zerohedge)

“Everything Is Under Scrutiny”: 38,000 Layoffs Across Auto Industry May Only Be The Beginning

Automakers can’t help but acknowledge the global recession in their industry after a decade of growth. As a result, they are slashing payroll across the board, according to Bloomberg. Countries like China, the United Kingdom, Germany, Canada and the United States have all seen at least 38,000 job cuts over the last six months in the automotive sector. And this could just be the beginning of larger cuts to come.

Daimler CEO Dieter Zetsche said Wednesday that “sweeping cost reductions” are ahead to prepare for what he is calling “unprecedented” industry disruption.

Bank of America Merrill Lynch analyst John Murphy said: “The industry is right now staring down the barrel of what we think is going to be a significant downturn. The pace of decline in China is a real surprise.”

Automakers are cutting shifts and closing factories across the world but the cost cutting goes beyond that. Salaried workers are also being cut, a surefire sign that slowing sales in both China and the US are taking their toll. Additionally, the slow down is coming at a time when automakers have deployed significant capital to invest in electric vehicles.

We reported about Ford’s plans on Monday to cut another 7000 jobs, representing 10% of its workforce worldwide. And the recession, which was likely due to happen regardless of market conditions, comes at the worst possible time. It could be exacerbated by the ongoing trade war, which foreign carmakers have warned could put 700,000 American jobs at risk.

This chart shows all of the job reductions announced and reported over the last six months.

Morgan Stanley analyst Adam Jonas said Tuesday: “Auto companies globally are contemplating life where global production has greater downside risk than upside. The chopping may not be over for Ford,” he continued, estimating a 5% decline in revenue could result in 23,000 more layoffs in the future.

Meanwhile, global light vehicle sales were down 0.5% in 2018 to 94.8 million, which was the first annual drop in global sales since 2009. Zetsche concluded: “Everything is under scrutiny.”

end

GLOBAL/FOOD SUPPLY/

This is surely a huge global problems the wettest in all of USA history strikes the USA plus other major hits to all parts of the globe

(courtesy Michael Snyder)

Crop-tastrophe In The Midwest – Latest USDA Progress Report Signals Nightmare Scenario

END

Authored by Michael Snyder via The Economic Collapse blog,

The last 12 months have been the wettest in all of U.S. history, and this has created absolutely horrific conditions for U.S. farmers.  Thanks to endless rain and historic flooding that has stretched on for months, many farmers have not been able to plant crops at all, and a lot of the crops that have actually been planted are deeply struggling.  What this means is that U.S. agricultural production is going to be way, way down this year.  The numbers that I am about to share with you are deeply alarming, and they should serve as a wake up call for all of us.  The food that each one of us eats every day is produced by our farmers, and right now our farmers are truly facing a nightmare scenario.

You can view the latest USDA crop progress report right here.  According to that report, corn and soybean production is way behind expectations.

Last year, 78 percent of all corn acreage had been planted by now.  This year, that number is sitting at just 49 percent.

And the percentage of corn that has emerged from the ground is at a paltry 19 percent compared to 47 percent at this time last year.

We see similar numbers when we look at soybeans.

Last year, 53 percent of all soybean acreage had been planted by now.  This year, that number has fallen to 19 percent.

And the percentage of soybeans that have emerged from the ground is just 5 percent compared to 24 percent at this time last year.

In other words, we are going to have a whole lot less corn and soybeans this year.

Farmers in the middle of the country desperately need conditions to dry out for an extended period of time, but so far that has not happened.

In fact, last week the heartland was hit by yet another string of devastating storms.  The following comes from CNN

Ten people are dead and a 4 year-old boy remains missing after more than a week of severe weather across the central US that put tens of millions of people at risk.

The deadly spring storm system ravaged several states, unleashing more than 170 reported tornadoes, fierce winds, drenching rain, flash flooding and hail.

One of the tornadoes that was spawned absolutely devastated the capital city of Missouri.  It was reportedly a mile wide, and it stayed on the ground for almost 20 miles

A clearer picture emerged Friday of the size and scope of the powerful tornadoes that tore across Missouri on Wednesday night, leaving a trail of destruction in their paths. The state’s capital, Jefferson City, was among the hardest-hit places, struck overnight by a tornado with a peak wind speed of 160 mph that has been given preliminary rating of EF3.

The monstrous nighttime tornado that struck Jefferson City, a city with a population of about 42,000, was almost a mile wide and was on the ground for nearly 20 miles, toppling homes, ripping roofs off homes and business below.

What we are witnessing is definitely not “normal”, and I have had a number of readers write to me about this recently.  The other day one of my readers in Montana sent me a photograph of a freak May snowstorm that had just hit his area, and another one of my readers in Missouri explained that his boss is freaking out because they haven’t been able to get soybeans in the ground.  All over the country people want answers, and they are frustrated with the lack of information that they are getting from the mainstream media.

Unfortunately, the truth is that things are going to get worse.  Global weather patterns are dramatically shifting, and there is nothing that the authorities will be able to do to stop it from happening.

And it isn’t just in the United States where we are seeing widespread crop failures.  I would encourage you to check out my previous article entitled “Floods And Drought Devastate Crops All Over The Planet – Could A Global Food Crisis Be Coming?”  In that article I discussed the fact that Australia will actually be importing lots of wheat this year, but normally it is one of the largest exporters of wheat in the entire world.  As crops fail all over the globe, there will be a scramble for food, and the wealthy western nations have more money than anyone else.

Over in Asia, the biggest problem right now is African Swine Flu.  Earlier today, I came across a CNBC article which stated that “up to 200 million Chinese pigs” may have already been lost to this nightmarish disease…

A trade fight with the U.S. isn’t the only war China is fighting. African swine flu has decimated the pig population in China and sent pork prices soaring. As many as up to 200 million Chinese pigs have reportedly been lost due to the disease.

Now, Wall Street analysts are scrambling to assess the fallout from the fast spreading illness and how to invest around it.

The entire U.S. pork industry does not even produce 200 million pigs in an entire year.

So another way of looking at this is that the equivalent of what the entire U.S. pork industry produces in an entire year has just been wiped out.

And now African Swine Flu has spread to other countries such as Vietnam and Cambodia, and so this pandemic could soon become a true global cataclysm.

We have never seen so many massive threats hit the global food supply simultaneously, and if this article deeply alarms you that is a good thing.

A perfect storm is rapidly developing, and many expect global events to start accelerating dramatically.

end

7  OIL ISSUES

 

8. EMERGING MARKETS

VENEZUELA/

Maduro is very angry that inbound gas tankers are being “sabotaged” and not allowed to leave their ports heading  to Caracas.

(zerohedge)

Maduro Says Inbound Gas Tankers “Sabotaged” As Part Of US “Imperial Aggression”

Venezuelan President Nicolas Maduro has pointed the finger at the United States and allies in “imperial aggression” for waging a “sabotage” campaign against vital fuel shipments as well as humanitarian aid being sent to the country after multiple tankers and shipments were reportedly damaged.

Maduro is reported to have told a meeting with the political leadership of the United Socialist Party of Venezuela (PSUV) in Caracas this week that vessels carrying food “were sabotaged and did not leave the ports where they were going to leave.” 

“Last week, sabotage was committed against ten tankers [with gasoline] to prevent them from reaching the Venezuelan coast. In any case, this problem is being dealt with and we are stabilizing the situation,” Maduro said late on Monday.

 

Image via the WSJ

He also called the alleged acts of sabotage “torture to the economic body of the country” – however, didn’t offer proof, and said further that problems with the fuel and food ships are “in the process of being resolved”. He described that the US and allied nations currently imposing aggressive sanctions on Venezuela were trying to prevent aid from reaching their destination.

“During the last 5 months of imperial aggression, we have endured financial persecutions, sabotage and coup skirmishes,” Maduro had tweeted Monday from his English-language account.

Nicolás Maduro@maduro_en

During the last 5 months of imperial aggression, we have endured financial persecutions, sabotage and coup skirmishes. However, we managed to strengthen the Civic-Military union and maintain the call to dialogue, with extremist opposition and with […] http://t.peq.cc/Dx35

According to shipping news monitoring site Maritime Herald, the allegations followed in the wake of US envoy for Venezuela Elliot Abrams’ prior indication that the US would soon sanction Venezuelan leaders accused of profiting off inbound food and fuel shipments subsidized by a government program.

The Maritime Herald report noted:

The head of state also revealed the sabotage to the boats that brought food for the program of products with subsidized prices, known as CLAP (acronym of Local Committees for Supply and Production). “The boats brought by the CLAP were sabotaged and did not leave the ports where they were going to leave,” he said.

Last Thursday, the Bolivarian leader guaranteed to the population of the South American country the continuity of CLAP, despite US threats to sanction the officials involved in the plan.

The report further cited Maduro as saying, “Do whatever you want to do, Venezuela will continue with the CLAP, which stings and extends from the hand of the people, from the national production.”

Last week Russian and Venezuelan officials announced plans for Moscow to ramp up humanitarian aid as well as military supplies to the Maduro government, also citing continuing “coup attempts” on the part of Washington after a failed Guaido opposition led uprising at the end of April.

end

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

Euro/USA 1.1190 DOWN .0003 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 110.37 DOWN 0.142 (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 1.2668   DOWN   0.0013  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3471 UP.0035 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 TUESDAY morning in Europe, the Euro FELL BY 3 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1190 Last night Shanghai COMPOSITE CLOSED UP 17.53 POINTS OR 0.61% 

 

 

 

 

 

//Hang Sang CLOSED UP 102.72 POINTS OR 0.38% 

 

 

 

 

/AUSTRALIA CLOSED DOWN 0.54%// EUROPEAN BOURSES ALL MIXED

 

 

 

 

 

 

The NIKKEI: this TUESDAY morning CLOSED UP 77.56 POINTS OR 0.37% 

 

 

 

 

 

 

 

 

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL MIXED

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 102,72 POINTS OR 0.38%

 

 

 

 

 

 

/SHANGHAI CLOSED UP 17.83 POINTS OR 0.61% 

 

 

 

 

 

 

 

 

 

Australia BOURSE CLOSED UP 0.64% 

 

 

Nikkei (Japan) CLOSED DOWN 77,56  POINTS OR 0.37%

 

 

 

 

 

 

 

 

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1284.20

silver:$14.59

Early TUESDAY morning USA 10 year bond yield: 2.29% !!! DOWN 4 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 2.76 DOWN 34  IN BASIS POINTS from FRIDAY night.

USA dollar index early TUESDAY morning: 97.77 UP 16 CENT(S) from  FRIDAY’s close.

This ends early morning numbers TUESDAY MORNING

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And now your closing TUESDAY NUMBERS \12: 00 PM

Portuguese 10 year bond yield: 0.92%  DOWN 5 in basis point(s) yield from FRIDAY/

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

 

SPANISH 10 YR BOND YIELD: 0.79% DOWN 3   IN basis point yield from FRIDAY

ITALIAN 10 YR BOND YIELD: 2.68 UP 12  POINTS in basis point yield from FRIDAY/

 

 

the Italian 10 yr bond yield is trading 189 points HIGHER than Spain.

GERMAN 10 YR BOND YIELD: FALLS –.16%   IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.84% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR TUESDAY

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

Euro/USA 1.1171  DOWN    .0022 or 22 basis points

USA/Japan: 109.52 UP .050 OR YEN DOWN 5  basis points/

Great Britain/USA 1.2666 DOWN .0014 POUND DOWN 14  BASIS POINTS)

Canadian dollar DOWN 45 basis points to 1.3482

 

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The USA/Yuan,CNY: AT 6.9101    0N SHORE  (down)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.9204  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  6.0295 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield DOWN 5 IN basis points from FRIDAY at 2.27 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.71 DOWN 4 in basis points on the day

Your closing USA dollar index, 97.90 UP 92  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 TUESDAY: 12:00 PM

London: CLOSED DOWN 8.78  0.12%

German Dax :  CLOSED DOWN 44.13 POINTS OR 0.37%

Paris Cac CLOSED  DOWN  23.50 POINTS O440.59%

Spain IBEX CLOSED DOWN 24.60 POINTS or 0.27%

Italian MIB: CLOSED DOWN 102.15 POINTS OR 0.50%

 

 

 

 

 

WTI Oil price; 59.14 12:00  PM  EST

Brent Oil: 69.97 12:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    64.67  THE CROSS HIGHER BY 0.15 ROUBLES/DOLLAR (ROUBLE LOWER BY 15 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.16 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

This ends the stock indices, oil price, currency crosses and interest rate closes for today 4:30 PM

Closing Price for Oil, 4:00 pm/and 10 year USA interest rate:

WTI CRUDE OIL PRICE 4:30 PM :  58.88

 

 

BRENT :  69.79

USA 10 YR BOND YIELD: … 2.21…   VERY DEADLY// AND INDICATIVE OF A HUGE RECESSION COMING UPON US

 

 

 

 

 

 

 

 

 

USA 30 YR BOND YIELD: 2.71..VERY DEADLY/ AND INDICATIVE OF A HUGE RECESSION COMING UPON US:

 

 

 

 

 

EURO/USA 1.1164 ( DOWN 29   BASIS POINTS)

USA/JAPANESE YEN:109.36 DOWN .158 (YEN UP 16 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.94 UP 33 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2655 DOWN 26  POINTS

 

the Turkish lira close: 6.0272 (AFTER GOV’T INTERVENTION THIS MORNING)

 

the Russian rouble 64.72   DOWN 0.37 Roubles against the uSA dollar.( DOWN 37 BASIS POINTS)

Canadian dollar:  1.3496 DOWN 59 BASIS pts

USA/CHINESE YUAN (CNY) :  6.9101  (ONSHORE)/we need to watch these levels/anything greater than 6.95 will be deadly./

 

USA/CHINESE YUAN(CNH): 6.9215 (OFFSHORE) we need to watch these levels/anything greater than 6.95 will be deadly/

German 10 yr bond yield at 5 pm: ,-0.16%

 

The Dow closed  DOWN 237,92 POINTS OR 0.93%

 

NASDAQ closed DOWN  29.66 POINTS OR 0.39%

 


VOLATILITY INDEX:  17.45 CLOSED UP 1,60

 

LIBOR 3 MONTH DURATION: 2.524%//

 

 

 

FROM 2.520

 

 

 

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

 

MARKET TRADING/Europe Monday

Early morning//Election results showing a big gain for Eurosceptic parties but not enough to foil a majority for the dominant European parties and their policies.  Trump states that he is not ready for a deal with China

.(courtesy zerohedge)

Futures Fade After Trump Says “Not Ready For Deal With China”, Autos Jump On Fiat Deal

With the US and UK closed for holiday, European shares rose on Monday led by automaker stocks following confirmation of merger talks between Fiat Chrysler and Renault, which sent the two companies surging…

… and after European parliamentary elections saw pro-Europe parties cling to a majority despite major gains for nationalist eurosceptic parties in Italy and France, where Macron was narrowly defeated by Marine Le Pen in a major blow to the deemed successor of Angela Merkel.

The pan-European STOXX 600 added 0.4% with all major European indices in the black, however trading volumes were thin as US and United Kingdom markets are closed for market holidays. Auto stocks climbed 1.8% as Italian-American carmaker Fiat Chrysler confirmed it had made a “transformative merger” proposal to French peer Renault in a deal which would create the world’s third-biggest carmaker. Shares of both companies rallied.

European sentiment was also boosted as pro-European parties retained a grip on the EU parliament, provisional results from the bloc’s elections showed, “though eurosceptic opponents saw strong gains” according to Reuters. Most notably, Europe’s centrists got crushed as the centre-left and centre-right parties lost their combined majority for the first time in 40 years as the FT reported.

That said, investors had been worried about eurosceptic parties gaining a 30% vote share – the level at which they could seriously disrupt European governance and the region’s ability to show unity in addressing key concerns like a global trade war. But whilefar-right, nationalist or anti-EU groups came out on top in Italy, Britain, France and Poland, they failed to alter dramatically the balance of pro-European power in the EU assembly.

“The impression of a fragmented political system remains, but perhaps when all is said and done, the message will be that Brexit has reduced appetite to leave the EU,” said SocGen FX strategist Kit Juckes.”In the simple world of FX a possible crisis is averted, leaving us with familiar issues. Europe needs more growth and while EU leaders argue over who gets which top jobs, it needs easier fiscal policy perhaps most of all,” Juckes said.

The euro initially rallied above $1.12 but by 0920 GMT the single currency was struggling, down 0.1% at $1.1195.

Europe’s gains followed a similar push higher across Asian markets, where shares rose but remained near 4-month lows. Asian stocks edged up, led by material and consumer discretionary firms, after rising on Friday. Most markets in the region advanced, with China, Indonesia and India leading gains. The Topix gauge rose 0.4%, driven by Takeda Pharmaceutical and SoftBank Group. The Shanghai Composite Index advanced 1.4%, with CSC Financial and China Life Insurance providing the biggest boosts. The S&P BSE Sensex Index climbed as much as 1%, as HDFC Bank and Housing Development Finance led a rally.

US equity futures traded in a narrow range, and after posting modest gains following the European open, gave up all their upside.

As always, the latest Trump trade commentary defined trader sentiment. During a state visit to Japan, Trump said the U.S. “isn’t ready to make a trade deal with China” adding that they probably wish they made the deal that they had on the table before they tried to renegotiate it.”Speaking at a joint press conference in Tokyo alongside Japanese leader Shinzo Abe, Trump also said that “they would like to make a deal. We’re not ready to make a deal.”

 

Donald Trump at a news conference in Tokyo on May 27. Photo: Bloomberg

Trump said American tariffs on Chinese goods “could go up very, very substantially, very easily.” His comments came after trade talks between the two countries stalled earlier this month. Each side has since blamed the other, and Trump has threatened billions more in tariffs.

Offsetting some of that gloom, Trump also said that he thinks “in the future China and the United States will absolutely have a great trade deal, and we look forward to that. Because I don’t believe that China can continue to pay these, really, hundreds of billions of dollars in tariffs. I don’t believe they can do that.”

With the US closed, bullishness prevailed modestly, with the MSCI world equity index ahead by 0.1%.

Emerging-market assets were steady as traders awaited the next chapter in the U.S.-China trade standoff. Trading was muted with the U.S. and U.K. markets closed for public holidays.

“In a nutshell, there is nothing really new here, but a sustained flow of mixed news is maintaining a cap of appetite for EMs, particularly those countries that are integrated with China and commodity exporters,” Credit Agricole SA strategists, led by Sebastien Barbe, wrote in a report.

Turkey’s lira climbed for a third day, its longest streak since February, after Turkey’s central bank increased reserve requirements for foreign-exchange deposits by 200 basis points.

Meanwhile, the yuan climbed to its highest in more than a week as China warned traders against shorting it. The currency jumped as much as 0.22% on Monday morning before paring its gain. Guo Shuqing, the head of China’s banking and insurance regulator, said in a speech on Saturday that speculators “shorting the yuan will inevitably suffer from a huge loss.” He joined a chorus of officials and state media outlets who have voiced support for the nation’s currency in recent weeks. “There is less fear that the Chinese yuan will depreciate past 7 against the USD, for now,” DBS Bank Ltd. economists Philip Wee and Eugene Leow write in a note dated Monday.

Meanwhile, the fallout from the government taking control of China’s Baoshang Bank hit the nation’s bond market, pushing up funding costs for lenders and yields on government debt.

European government bond markets were little moved with the spread between the German 10-year bond yield and the Italian 10-year government bond yield little moved after initially narrowing. Spanish and Portuguese bond yields hit record lows.

Elsewhere, U.S. President Donald Trump’s visit to Japan was overshadowed by trade tensions. Trump pressed Japanese Prime Minister Shinzo Abe to even out a trade imbalance with the United States.The yen fell 0.2% against the dollar to 109.495 but remained close to four-month highs hit earlier in May as traders looked for safety in the face of mounting trade-related woes. The South Africa’s rand underperformed peers after debt-laden state power utility Eskom Holdings SOC Ltd. said Friday its chief executive officer will step down. Hungary’s forint held on to most of the gains against the euro from Friday as investors awaited a rate meeting on Tuesday for clues of potential policy action in June.

Finally, the pound held around $1.2703. Sterling had bounced back from a near five-month trough of $1.2605 after British Prime Minister Theresa May last week named a date for her to step down – triggering a leadership contest during which investors fear the risk of a no-deal Brexit will rise.

In commodities, oil prices were mixed following losses from last week when crude dropped the most this year. Concerns the Sino-U.S. trade war could trigger a broad economic slowdown have sent this year’s oil rally into reverse, although OPEC’s supply cuts provided some support. Front-month Brent crude futures rose 0.1% to $68.80 per barrel while U.S. West Texas Intermediate (WTI) crude futures shed 0.5% to $58.33 per barrel.

Iron ore continued its rally, on concern there’s a global shortage in the seaborne market. And Bitcoin climbed to the highest level in a year, after surging almost 70% this month.

Top Overnight News from Bloomberg

  • China advised traders against shorting its currency, with a regulatory official warning that speculators “shorting the yuan will inevitably suffer from a huge loss”
  • With nearly all the vote counts complete from the European Parliament elections, Nigel Farage’s Brexit Party — which wants the U.K. to leave the EU without a deal — was in first place, followed by the Liberal Democrats
  • Mainstream EU parties held their ground against the assault from populists in elections for the bloc’s Parliament as the highest turnout in two decades looked set to reward pro-EU Liberals and Greens
  • Matteo Salvini is set to make his League party Italy’s biggest political force while falling short of the knockout blow that would allow him to seek the premiership, according to projections of votes in the European Parliament elections. French President Emmanuel Macron suffered a narrow defeat to Marine Le Pen’s nationalist movement in the European election
  • South Korean won advanced for a fourth day after the authorities stepped up their attempts to jawbone the currency in the past week
  • Philip Hammond warned Conservative leadership candidates that a government that tries to force a no-deal Brexit on Parliament risks being brought down in a no-confidence vote
  • President Donald Trump acknowledged on Sunday a trade deal with Japan wouldn’t occur during his trip to Tokyo, saying that nothing would be finalized until after Japan’s elections in July
  • President Jair Bolsonaro called on lawmakers to further his reform agenda, starting with the approval of a crucial pension bill in Congress, after thousands of government supporters took to the streets in more than 100 cities across Brazil on Sunday

END

TRADING TUESDAY MORNING

All is not well this morning with the USA 10 yr bond yield at 2.29

(zerohedge)

Trader: Bond Yields Signal All Is Not Right With The World

While global stocks remain near record highs, global bond yields are at their lowest since January 2018, with US Treasury rates at their lowest since Q4 2017 (and the curve inverted out beyond 10 year maturity).

Of course, investors are told to shrug this dramatic divergence off (“it’s Japan and Germany’s fault, not a reflection of US growth”, keep buying NFLX calls and pray to the god of central banking that all will be well.

Former fund manager, and FX trader Richard Breslow disagrees, warning in his latest note that “bond yields signal all is not right with the world.” And understatement perhaps, but there are more disturbing divergences not so easily shrugged off…

Via Bloomberg,

Talk about receiving mixed signals. Equity markets are basically quiet. Up a little in Asia, down a little in Europe. Pretty much trading at very familiar levels that we’ve seen multiple times this month. When the Shanghai Composite rallied in the last minutes of the day, it felt like it just wanted to get back to being neutral rather than responding to any particular news. Foreign-exchange markets have been somewhat more cautious but nothing jaw-dropping. Just a slow start to a holiday-shortened week.

Then you look at global bond yields and can’t help but wonder if something is seriously the matter. This isn’t about inflation undershoots. It isn’t about the latest batch of economic numbers. This is about geopolitics and where do you invest in a world where the quick resolution of our troubles and uncertainties can no longer be most investors’ base case.

Traders are looking at bond yields and concluding that they may be lower than the models suggest but they’re good enough. Bizarrely, even those with negative yields. Dumping stocks wholesale is hard to do. And not possible given many strategies. Besides, as tenuous as they have looked at times, they really haven’t done anything wrong — other than having stopped making new all-time highs on a regular basis. The retracement levels continue to hold. If that ceases to be true, we can revisit.

Getting out of carry is all about timing. You can lighten up, and, obviously, traders have, but it places you one headline away from being seriously off-sides. And the hunt for yield remains a powerful inducement to be involved. Especially for your limited partners who pay for the privilege of sleeping at night. The important skill will be to differentiate between the expected winners and losers within the asset class. You just have to decide which of the world’s problems you are trying to avoid.

It remains something of a mystery why the price action in commodities like precious metals has remained so moribund. And whether that can continue. They may look comatose, but are surely worth keeping a close eye on. The longer they sit, moreover, the technical picture will begin to be more supportive.

In a world of perpetual quantitative easing it became an accepted investing strategy to ignore geopolitical risk other than for very short bursts of time. Maybe that will largely remain the case. Or at least look like it. But not if you are trading bonds. And the more bonds you own, the more “risk” assets you can not only afford to own, but may have no alternative. Don’t expect a single market narrative to neatly describe all price action.

TRADING/LATE TUESDAY MORNING
DEAD CAT BOUNCE!

S&P Gives Up Early Gains, Trannies Tank As Dollar & Bonds Bid

Another dead cat bounce dies…

Another overnight liftathon and opening ramp has ended prematurely with the S&P 500 just going red on the day (joining Small Caps and Trannies deep in the red)…

Bonds have been bid all day…

 

And the dollar is ratcheting higher…

 

end

Tuesday afternoon:

Yield Curve Flashing Biggest Recession Signal Yet: Shilling Thinks It Started!

Authored by Mike Shedlock via MishTalk,

Treasury yields have plunged at the mid to long end of the yield curve producing biggest recession warning yet.

On Friday, US Treasury yields plunged at the mid to long end of the curve providing the most inversions since the start of the Great Recession. This is the biggest recession warning since 2007.

Yield Curve

Major portions of the yield curve are inverted for nearly 15 years.

end

ii)Market data/

Good indicator that the uSA economy is faltering:  home price gains have now slumped for the 12th straight month

(courtesy zerohedge)

US Home Price Gains Slump For 12th Straight Month, Weakest In 7 Years

Case-Shiller’s March home price index showed yet another deceleration in growth – the 12 months in a row of slowingequals the 2014 growth scare’s length but is the weakest growth since July 2012.

After February’s 20-City Composite 3.00% YoY print, expectations were for 2.55% growth in March and it surprised very modestly with a 2.68% YoY print (still the lowest in 7 years)…

Nationally, home-price gains slowed to a 3.7% pace.

“Given the broader economic picture, housing should be doing better,” David Blitzer, chairman of the S&P index committee, said in a statement.

“Measures of household debt service do not reveal any problems and consumer sentiment surveys are upbeat. The difficulty facing housing may be too-high price increases,” which continue to outpace inflation, he said.

While all 20 cities in the index showed year-over-year gains, five were below 2%: Chicago, Los Angeles, San Diego, San Francisco and Seattle, which a year ago posted a 13% increase. Las Vegas led the nation in March with an 8.2% gain, followed by Phoenix.

end

 

iii)USA ECONOMIC/GENERAL STORIES

Welcome to the world of San Francisco

(courtesy zerohedge)

San Francisco: An Expensive, Shit-Covered Cesspool Marked By Crime And Depression

Thanks to high-crime, squalor, relaxed drug laws and an excruciatingly high cost of living, San Francisco has become one of the nation’s most depressing places to live, according to the City-Journal‘s Erica Sandberg.

And it’s not just the shit-covered streets which require highly-compensated “poop patrollers” to try and keep up with the fecal fiasco, or the thousands of used drug needles littering the ground, or the shocking number of aggressive homeless people terrifying touristsSan Francisco is a bastion of property crime – in fact, it’s the worst city in the nation when it comes to burglary, larceny, shoplifting and vandalism, according to the report.

The rate of car break-ins is particularly striking: in 2017 over 30,000 reports were filed, and the current average is 51 per day. Other low-level offenses, including drug dealing, street harassment, encampments, indecent exposure, public intoxication, simple assault, and disorderly conduct are also rampant.

When compounded with other troubles for which the city is now infamous (human feces, filth, and homelessness, which is up 17 percent since 2017), San Franciscans find themselves surrounded by squalor and disorder. –City-Journal

According to many in law enforcement, the crime wave is being fueled by a 2014 law, Proposition 47, which downgraded possession of illegal narcotics for personal use as well as theft of items below $950 in value from felonies to misdemeanors.

All of this has left residents depressed, according to Marina Times EIC Susan Dyer Reynolds, who said “A lot of people are ready to leave because the crimes are causing depression,” adding that so-called homeless navigation centers “are not sober facilities, and people steal and break into cars to feed their habits. Crime will go up. We know this.”

Meanwhile, rampant low-level crimes are intensifying the death of retail in San Francisco.

Landmark Mission District stores are shuttering, citing theft and lack of security. In April, CVS closed two pharmacies that had been ravaged by constant shoplifting. Mom-and-pop businesses, wracked by so-called minor losses, find it impossible to survive. Empty storefronts dot once-vibrant neighborhoods. –City-Journal

“Property and low-level crimes shrink the space for everyday people and enlarge them for the people committing them,” according to criminal prosecutor Nancy Tung, who is running for District Attorney in the 2019 election. “If we continue down this path, we will see more people leave San Francisco.”

Crime hits the poor the hardest

“In the Tenderloin we have vulnerable populations—people of color, the most children, the second-highest concentration of elders, and they are held hostage by drug dealers and theft, and the city tells them these crimes are not that bad,” says Tung. “We are failing to protect them. The police do a good job, because the criminals are caught, only to be released back on the streets over and over.”

“The everyday wear and tear on your psyche gets to you,” said David Young – board president of his South Market building which suffered four window smashings in a six-month period. “When we walk out the door, we know that there is a 100 percent chance we’ll see someone on drugs, in various states of undress, blood on sidewalks, and discarded sharps. These are crimes no one in city hall seems to care about. When you say something about it, you’re called a fascist.

San Francisco used to be an amazing place to live, says Young. “Now people look at the city as an abscess … The cost of housing compared to the quality of life is way off. Everyone is talking about it. Crime has been ignored for so long, and it’s gotten so huge. Serial repeat offenders have no problem making bail, especially drug dealers, as they see it as the cost of doing business.”

Fighting back

Some local residents are taking matters into their own hands. Activist Frank Noto, who co-founded “Stop Crime: Neighborhood for Criminal Justice Accountability,” says he had heard too many stories from locals who were suffering from smash-and-grabs and home burglaries. In 2016, Frank helped win a City Hall grant to fund crime prevention tools, such as installing security cameras and tracking devices.

Neighbors had come together for an art project, which drew crowds—but also crime rings. First tourists’ cars were hit, then residents’ cars, and then homes. So the group started a court-watch program. They attended hearings and observed decisions, and they noted a casual judicial approach to these cases. Their presence didn’t go unnoticed. Judges know that they’re being scrutinized; one actually recused himself. “We have to take a stand,” says Noto. “We talked to one guy, an electrician, who’s been burglarized six times, and all of his tools have been stolen. All we want is for the DA and judges to take this seriously.” –City-Journal

The SF police say they’re ‘doing their best’ for whatever that’s worth. “It looks like hell here, but we are getting those people,” according to SFPD Department Captain Carl Fabbri, who heads up the tenderloin police station. “In our district, robberies are down 17 percent, burglaries are down 28 percent, and auto break-ins are down 26 percent. These results don’t just happen. We’re getting the people off the streets even for two days. When they’re in jail, we see an impact.”

That said, the San Francisco judicial system is letting criminals free too soon, according to people like Fabbri, Tung and Noto. “We could be keeping them and be giving services while they’re in jail,” says Fabbri. “It could really be effective. We need changes in the law and policies, to amend Proposition 47 and strengthen quality-of-life laws.”

We won’t hold our breath… well, maybe.

end
This is a good indicator of how good the economy is behaving:  Manhattan home prices have tumbled the most since 2010
(courtesy zerohedge)

Manhattan Home Prices Tumble Most Since 2010… And Buyers Reappear

Proving that higher prices aren’t always better news, housing in Manhattan may finally be catching a bid after a nearly yearlong slump in prices has plunged far enough to finally attract buyers. Additionally, inventory growth finally looks to be slowing down. 

Manhattan home prices were thrashed again in April, falling the most since 2010 – but this time, there may be somewhat of a silver lining. The falling prices caused buyers to “pounce”, resulting in 1,193 homes under contract during the month – more than any month since April of 2015, according to data provided by Bloomberg and StreetEasy. Perhaps deflation is not so evil after all.

StreetEasy’s price index fell 5.2% from a year ago to $1.11 million. The index measures change in resale prices for the same properties over time. It was the largest decline in the index since April 2010, when the index dropped 6.1%. 

The newfound bid for homes could be a sign that Manhattan’s market may be emerging from a drought of buyers, who had been previously been sitting on the sidelines, scared of overpaying for properties. As prices move toward more realistic buyer expectations, capital has been put to work.

Grant Long, senior economist at StreetEasy said: “Sellers are finally getting that many of their price expectations were not realistic. They’re lowering their prices to a point that’s attractive to buyers.”

Here are some of StreetEasy’s additional findings:

  • The most homes went into contract since 2015. The number of pending sales in Manhattan increased 26.6% from last year, up by more than 250. The number of homes entering contract in Upper Manhattan doubled year over year, from 66 to 132.
  • Inventory growth slowed. While sales inventory growth remained in the double digits at 10.8%, it still moved at the slowest pace in 13 months. The volume of new inventory hitting the market shrank by 9.6% over last year.
  • As sellers priced homes more strategically from the start, fewer made price cuts. The share of homes with a price cut fell slightly for the first time in 13 months. Some 14.1% of Manhattan homes saw a price decrease in April — down 0.6 percentage points from last year. The share of price cuts fell the most in the Upper West Side — down 2.1 percentage points to 14.2%.
  • Luxury home inventory dropped slightly. The number of homes for sale priced within the top 20% of the market fell by 0.3%, the first year-over-year decrease in inventory since February 2018.

Recall, in early May, we wrote that inflated and overpriced retail real estate in Manhattan was turning the city into a “wasteland”. Later, the Post wrote an article confirming our writeup from late March which pointed out that high prices were driving businesses out of town:

If you want to see the future of storefront retailing, walk nine blocks along Broadway from 57th to 48th Street and count the stores.

The total number comes to precisely one — a tiny shop to buy drones.

That’s right: On a nine-block stretch of what’s arguably the world’s most famous avenue, steps south of the bustling Time Warner Center and the planned new Nordstrom department store, lies a shopping wasteland.

It appears that, despite what central bankers think, the only logical, and natural, response to high prices is, gasp, low prices. Unfortunately, while the Federal Reserve may be willing to ease back on US home prices, it has so far refused to do the same to the stock market. And just like unsustainably high prices resulted in the bursting of the housing bubble in 2007, so the inability of the market to deflate to a fair value will be the reason behind the next great bubble burst.

end

Peru on Sunday got hit with a 8.0 magnitude earthquake.  California was then hit with more than 80 tremors.We must be very cognizant of these developments surrounding the ring of fire

(courtesy Michael Snyder)

California Is Shaken By More Than 80 Tremors, Peru Struck By Largest Quake In 12 Years

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

Very early on Sunday morning, a massive 8.0 magnitude earthquake struck a sparsely populated area of Peru.  As you will see below, it was the largest earthquake to hit Peru in 12 years, and other areas of “the Ring of Fire” experienced unusual shaking afterwards.  Here in the United States, there were dozens of detectable earthquakes in the state of California on Sunday, and a lot of people are concerned about what all of these small earthquakes could mean.  More than 80 percent of the world’s earthquakes happen within the Ring of Fire, and many scientists believe that shaking along one section of the Ring of Fire can put stress on other portions.  Of course we have been told over and over again that California is way overdue for a “Big One”, and we know that it is coming someday.  Let us just hope that it can be delayed for as long as possible.

Any major earthquake along the Ring of Fire is reason for concern, and the one that hit Peru on Sunday was definitely very unusual.  According to CBS News, the magnitude 8.0 earthquake was deep enough that it did not cause much damage…

A powerful magnitude 8.0 earthquake struck a remote part of the Amazon jungle in Peru early Sunday, collapsing buildings and knocking out power to some areas but causing only one reported death. The quake struck at 2:41 a.m. and was centered in a vast nature preserve 57 miles east of the small town of Yurimaguas.

Helping limit damage was the earthquake’s depth, at 70 miles below the surface, according to the U.S. Geological Survey. Earthquakes that are close to the surface generally cause more destruction.

But just because it didn’t cause that much damage does not mean that it wasn’t extremely powerful.

In fact, CNN is reporting that it was the strongest earthquake to hit Peru in 12 years and that it “was felt in several regions of the country”…

The earthquake was the strongest in Peru in 12 years, Vizcarra said.

Peru’s National Emergency Operations Center tweeted that the earthquake was felt in several regions of the country, and monitoring continues.

Is it just a coincidence that California was hit by dozens of earthquakes in the aftermath?

I have the USGS website up right now, and it is telling me that there have been more than 80 earthquakes in California within the last 24 hours.

By the time that you look at the same map, the numbers will inevitably have changed, but hopefully you will still be able to see that most of the recent shaking has been in southern California.

And whenever we see a lot of shaking in southern California, that should definitely raise a red flag.

As I have shared in previous articles, one scientific study came to the conclusion that one day an absolutely enormous earthquake “could plunge large parts of California into the sea almost instantly”

The Big One may be overdue to hit California, but scientists near LA have found a new risk for the area during a major earthquake.

They claim that if a major tremor hits the area, it could plunge large parts of California into the sea almost instantly.

The discovery was made after studying the Newport-Inglewood fault, which has long been believed to be one of Southern California’s danger zones.

Someday it will happen.

It is just a matter of time.

There have also been an unusually large number of small earthquakes off the coast of Washington state lately, and this is something that Mac Slavo discussed in one of his recent articles

Earthquakes that cannot be felt are being recorded in record numbers just south of Seattle, Washington. Quakes 20 miles below our feet are slowly releasing, and have been since early April.

For the first time since 2011, three distinct zones in the Pacific Northwest have been “going off” all at once. According to King 5 News, scientists say that the theory is that the sub-ducting ocean plate is being stretched like taffy in the heat that is the mantle of the earth. “Any signal you get is interesting,” said Tim Melbourne, a who runs the Northwest Geodetic Array, which is based at Central Washington University in Ellensburg.

“If you have something out in the dark, and you know it’s dangerous, you know it’s menacing, and every now and then you get a flash of light from it. Any flash of light doesn’t tell you a lot, but you piece them all together and you can start to put together all the angles, and you can start to see the dragon, and it’s a big dragon,” Melbourne said.

Hopefully all of this unusual activity will turn out to be nothing.  But without a doubt we do live at a time when our planet is becoming increasingly unstable, and this has important implications for all of us.

After I wrote the last sentence, I got up to change the song on my music player, and as I scrolled through the selections one of the choices that came up was “City of Refuge” by a group called 4Him.  Considering what I am writing about, I thought that was quite a strange “coincidence”.

For the moment, life in the state of California continues as normal, but scientists assure us that one day a history-changing earthquake will hit the state and they have repeatedly warned us that the San Andreas fault “could unzip all at once”.

When that day finally arrives, it will be far worse than any Hollywood movie has ever imagined, and life in America will never be the same again.

END

Trump attacks the crime bill signed into law by Biden and Bill Clinton

(courtesy zerohedge)

Trump Trounces Biden And Clinton In One Swipe With “Super-Predator” Throwback Tweet

President Trump took a hard swing at both Joe Biden and Hillary Clinton on Monday, referencing a 1994 crime bill originally written by then-Congressman Joe Biden, which was supported by Hillary Clinton, and signed into law by Bill Clinton.

The “1994 Law” was widely blamed for contributing to the mass incarceration of black Americans for low-level drug crimes during the USA’s infamously failed war on drugs.

“Anyone associated with the 1994 Crime Bill will not have a chance of being elected,” tweeted Trump. “In particular, African Americans will not be able to vote for you. I, on the other hand, was responsible for Criminal Justice Reform, which had tremendous support, & helped fix the bad 1994 Bill!”

Donald J. Trump

@realDonaldTrump

Anyone associated with the 1994 Crime Bill will not have a chance of being elected. In particular, African Americans will not be able to vote for you. I, on the other hand, was responsible for Criminal Justice Reform, which had tremendous support, & helped fix the bad 1994 Bill!

In a second tweet, Trump writes “….Super Predator was the term associated with the 1994 Crime Bill that Sleepy Joe Biden was so heavily involved in passing. That was a dark period in American History, but has Sleepy Joe apologized? No!”

Donald J. Trump

@realDonaldTrump

….Super Predator was the term associated with the 1994 Crime Bill that Sleepy Joe Biden was so heavily involved in passing. That was a dark period in American History, but has Sleepy Joe apologized? No!

Notably, Hillary Clinton called young people from disadvantaged communities “superpredators” in a 1996 speech discussing the 1994 bill, a comment widely panned as racist. During the 2016 US election, she described it as a “poor choice of words.”

END
This is going to be very costly to insurance companies and the USA government
(courtesy zerohedge)

“It Looks Like A War Zone” – Millions Without Power As Tornadoes Rip Through Ohio & Indiana

More than 5 million people were left without power after a series of tornadoes ripped through parts of Ohio and Indiana late Monday, destroying homes and severing power lines – the latest installment in a two-week span of powerful tornadoes and thunderstorms that has rocked the Midwest, leaving nine dead.

Ohio

State officials in Ohio told the press that they have confirmed at least seven people were injured in the storms. The town of Celina in Mercer County, about 80 miles north of Dayton, sustained extensive damage, prompting the Ohio Department of Transportation to employ snow plows to remove debris off Interstate 75. Across the region, the NWS issued 36 tornado warnings.

The agency confirmed a “large and dangerous” tornado on the ground near the suburb of Trotwood in Montgomery County shortly before midnight.

“We probably have more than a handful of tornadoes that we need to look at on the ground throughout the region, maybe even more,” said John Franks, a meteorologist with the National Weather Service in Wilmington, Ohio.

The City of Montgomery said it was focusing on ‘life-saving’ measures.

“A large, dangerous tornado touched down last night in northwest Montgomery County,” the county said in a statement. “We are focused on supporting life-saving measures, such as shutting down gas lines or locating people who are trapped by debris.”

Embedded video

Live Report@tweetlivereport

BREAKING: Two major tornadoes hit Dayton In Ohio. Reports of catastrophic damage and multiple injuries:

One Dayton resident told NBC that a tornado destroyed her entire street, adding that she didn’t hear any warning sirens before the storm. A pastor at a church in northern Dayton said one of the storms destroyed his office.

“I saw the clouds spin backwards and the trees began to sway uncontrollably and we took shelter,” she said. “I was standing on the porch that is no longer standing.”

Scott Ritz, a pastor at Northright Wesleyan Church in northern Dayton, told NBC News early Tuesday morning that there was “tremendous damage.”

“My corner office is no longer there,” Ritz said of his church building. “It’s in the parking lot.”

Four shelters opened in Montgomery County overnight to offer cover, food and water to distraught residents. Though ironically, one shelter lost power soon after opening.

Ohio

Thanks to outages at pump stations and water-treatment plants, Dayton officials warned residents to boil their water before drinking.

Adam Aaro

@AdamFox45Now

…”First Responders are performing search and rescue operations and debris clearing. Dayton residents are asked to call 911 for all emergencies.”

Adam Aaro

@AdamFox45Now

Frightening video of aftermath of tornado in Dayton sent to us by a viewer. She says it’s off Troy Street. Many viewers have said the damage looks like a war zone… @ABC22FOX45 pic.twitter.com/X8fjz8Pk47

Embedded video

325 people are talking about this

In nearby Mercer County, at least seven people were hospitalized for injuries sustained during the storm – though thankfully nobody died. The town of Celina, a town of about 10,000 residents about 72 miles northwest of Dayton, saw ‘numerous’ homes destroyed.

WDTN

@WDTN

The Mercer County Emergency Management Director says that emergency crews are focusing their efforts on search and rescue. Residents are asked to stay off roadways if possible. http://bit.ly/2JIHqMh?utm_medium=social&utm_source=twitter_WDTN 

Mercer County EMA focusing on search and rescue

An area in the northwest section of Celina and farther west out of town have suffered extensive damage. Several homes have been destroyed and EMA Director Mike Robbins says there are reports of…

wdtn.com

The mayor of Celina said his town looked like ‘a war zone’ after the storms.

“It looks in areas like a war zone, some of the houses were completely moved off their foundations and gone,” Celina Mayor Jeffrey Hazel told WDTN.

At least one Dayton suburb, the town of Beavercreek, issued an emergency warning telling residents to watch out for gas leaks while crews worked to clear downed power lines.

Ohio

Earlier in the weekend, tornadoes also touched down in Colorado, Iowa and Oklahoma. Tornadoes were also reported in the Eastern part of Ohio.

end

SWAMP STORIES

Trump targets the Genesis of the Russian collusion:  how Mifsud fed PapaD. with the phony story in March of 2016 and this was fed to Downer who in turned fed this to the Australian government who in turn fed it back to the FBI. Trump also wants to learn about the Ukrainian government trying to influence the election as they were staunch supporters of Hillary

(courtesy zerohedge)

Trump Targets UK, Australia And Ukraine Over ‘Greatest Hoax In The History Of Our Country’ 

President Trump on Friday said that he wants Attorney General William Barr to investigate the UK, Australia and Ukrainefor their roles in the ‘greatest hoax in the history of our country.’

Speaking with reporters at the White House on Friday before his trip to Japan, Trump discussed his decision this week to issue a sweeping declassification order – leaving it in the hands of Barr to determine exactly what happened to Trump and his campaign before and after the 2016 US election.

“For over a year, people have asked me to declassify. What I’ve done is declassified everything,” said Trump, adding “He can look andI hope he looks at the UK and I hope he looks at Australia and I hope he looks at Ukraine.”

“It’s the greatest hoax probably in the history of our country and somebody has to get to the bottom of it. We’ll see. For a long period of time, they wanted me to declassify and I did.”

(UK, Australia, Ukraine comment at 2:30)

“This is about finding out what happened,” said Trump. “What happened and when did it happen, because this was an attempted takedown of the president of the United States, and we have to find out why.”

“We’re exposing everything. We’re being a word that you like, transparent. We’re being, ultimately we’re being transparent. That’s what it’s about. Again, this should never ever happen in our country again.”

After the Mueller report made clear that Trump and his campaign had in no way conspired with Russia during the 2016 election, Democrats immediately pivoted to whether Trump obstructed the investigation. Trump and his supporters, however, immediately pivoted to the conduct of the US intelligence community, including the involvement of foreign actors and possibly their governments.

According to a report last week, the discredited “Steele Dossier” – assembled by former MI6 spy Christopher Steele – was referred to as crown materialin an email exchange suggesting that former FBI Director James Comey insisted that CIA Director John Brennan pushed for the inclusion of the dossier in the intelligence community assessment (ICA) on Russian interference.

Moreover, much of “Operation Crossfire Hurricane” – the FBI’s official investigation into the Trump campaign – occurred on UK soil, which is perhaps why the New York Times reported last September that the UK begged Trump not to declassify ‘Russiagate’ documents ‘without redaction.’

Shortly after he announced his involvement with the Trump campaign, aide George Papadopoulos was lured to London in March, 2016, where Maltese professor and self-described Clinton foundation member Joseph Mifsud fed him the rumor that Russia had damaging information on Hillary Clinton. It was later at a London bar that Papadopoulos would drunkenly pass the rumor to Australian diplomat Alexander Downer (who FBI agent Peter Strzok flew to London to meet with the day after Crossfire Hurricane was launched).  (Harvey;  the real Genesis to the story begins March 2016)

 

Joseph Mifsud, George Papadopoulos

Two weeks laterPapadopoulos would be bilked for information by Australian diplomat (another Clinton ally) Alexander Downer at a London bar, who relayed the Russia rumor to Australian authorities, which alerted the FBI (as the story goes), which ‘officially’ kicked off the US intelligence investigation.

George Papadopoulos@GeorgePapa19

We have now pinned Peter Strzok’s boss, Bill Priestap, in London the week of May 6th, 2016 and on the 9th. The day before Alexander Downer was sent to spy on me and record our meeting. Congress must release the transcripts and embarrass the deep state.

As for Ukraine, a Ukrainian court ruled in December that the country meddled in the US election when they revealed details of suspected illegal payments to former Trump campaign manager Paul Manafort.

In 2016, while Mr. Manafort was chairman of the Trump campaign, anti-corruption prosecutors in Ukraine disclosed that a pro-Russian political party had earmarked payments for Mr. Manafort from an illegal slush fund. Mr. Manafort resigned from the campaign a week later. –New York Times

Last week, President Trump’s attorney Rudy Giuliani met with a former Ukrainian diplomat, Andril Telizhenko, who has previously suggested that the DNC worked with the Kiev government in 2016 to dig up ‘dirt’ on then-candidate Donald Trump. Giuliani told the Washington Post in a Friday interview that Telizhenko “was in Washington and he came up to New York, and we spent most of the afternoon together,” adding “When I have something to say, I’ll say it.”

This comes on the heels of Giuliani canceling a trip to Ukraine to meet with President-elect Volodymyr Zelensky to discuss the Manafort situation.

According to The Hill‘s John Solomon,

A former DNC operative steeped in Trump-Russia research approached the Ukrainian government looking for ‘dirt’ on then-candidate Donald Trump during the 2016 US election, citing written answers to questions submitted to Ambassador Valeriy Chaly’s office.

Chaly confirmed that DNC insider of Ukrainian heritage, Alexandra Chalupa, approached Ukraine seeking information on Trump campaign chairman Paul Manafort’s dealings inside the country, in the hopes of exposing them to Congress.Chalupa, who told Politico in 2017 that she had “developed a network of sources in Kiev and Washington, including investigative journalists, government officials and private intelligence operatives,” said she “occasionally shared her findings with officials from the DNC and Clinton’s campaign.In short, a DNC operative of Ukrainian heritage, who shared information with the Clinton campaign and worked with a convicted terrorist to spread misinformation to undermine the legitimacy of the 2016 election, approached the government of Ukraine in the hopes of obtaining “dirt” that would hurt the Trump campaign.And Trump wants AG Barr to look at it all. He’ll be visiting the UK next month, meanwhile, where he can ask outgoing PM Theresa May, or the Queen, all about it.

end

The real colluders…the real obstructionists and the real leakers…the Democrats.

a must read…

(courtesy Victor Davis Hanson/for the American Greatness Blog)

Colluders, Obstructionists, Leakers, And Other Projectionists

Authored by Victor Davis Hanson via American Greatness blog,

Before the defeat of Hillary Clinton, the idea that the Russians or anyone else could warp or tamper with our elections in any serious manner was laughed off by President Obama. “There is no serious person out there who would suggest that you could even rig America’s elections,” Obama said in the weeks leading up to the 2016 election.

Obama was anxious that the sure-to-be-sore-loser Trump would not blame his defeat on voting impropriety in a fashion that might call into question Clinton’s victory. After Clinton’s stunning defeat, Russian “collusion”—thanks initially to efforts by Obama holdover Deputy Attorney General Sally Yates to go after Michael Flynn and the successful attempts of the CIA and FBI to seed the bogus Steele dossier among the government elite—became a club to destroy the incoming Trump Administration.

Colluders, Inc.

How ironic that Russian “collusion” was used as a preemptive charge from those who actually had colluded with Russians for all sorts for financial and careerist advantages.

The entire so-called Uranium One caper had hinged on ex-President Bill Clinton, Secretary of State Hillary Clinton, and their Clinton Foundation uniting with Russian or Russian-affiliated oligarchs to ease restrictions on the sale of North American uranium reserves to a Russian company with close ties to Vladimir Putin. Coincidentally what followed were massive donations from concerned Russian parties to the foundation, as well as a $500,000 honorarium to Bill Clinton for a brief Moscow speech. Note that no more money has been forthcoming from Russia to either of the Clintons or their foundation.

Had Donald Trump been caught, as President Obama was in Seoul in March 2012, on a hot mic assuring the Russians that he would be more flexible with Russia after the 2020 election (“On all these issues, but particularly missile defense, this, this can be solved—but it’s important for him [Putin] to give me space”) he would likely now be facing real impeachment charges.

Imagine the cries of outrage from Representatives Jerrold Nadler (D-N.Y.) and Adam Schiff (D-Calif.) had Trump inadvertently blurted out to the world that he was willing to warp U.S. security interests to fit his own reelection agenda. (Remember: “This is my last election . . . After my election, I have more flexibility.”) Such a stealthy quid pro quo certainly would have been the crown jewel of Special Counsel Robert Mueller’s report.

The locus classicus of Russian collusion, however, is Hillary Clinton’s effort in 2016. The facts are not in dispute. Using the three firewalls of the Democratic National Committee, the Perkins Coie law firm, and Glenn Simpson’s Fusion GPS, the Clinton campaign paid a foreign national, British subject Christopher Steele, to compile a smear dossier against Clinton’s then-opponent, Donald J. Trump.

Steele then bought Russian and Russian-related sources to produce supposed dirt on Trump. None of these Russian-generated smears would ever be verified. In fact, almost immediately most slurs proved to be outright lies and completely made up in their details—if not the stuff of a Russian disinformation campaign.

Nonetheless, Steele seeded his contracted dirt during the 2016 election, and later during the Trump transition and presidency, among the highest Obama Administration officials at the Justice Department, FBI, and CIA. After more than three years of ex-Obama officials’ obfuscation, stonewalling, and chronic lying, we now know Clinton used Russian fake sources both to generate damaging anti-Trump media stories and to prompt government investigations designed to hamstring his governance. Again, if there is such a thing as “Russian collusion,” then Hillary Clinton is its font.

Obstructors of Justice

Mueller spent more than $34 million and wrote over 440 pages to inform the American people that Trump could not realistically be indicted for obstructing justice, mostly because the underlying crime—“collusion”— never existed in the first place. Moreover, Mueller and other officials were never actually hampered in their investigations. No matter: “obstruction” was supposedly the key to destroying the Trump Administration after collusion imploded. To this day it remains the battle cry of the impeach-Trump Left.

But what exactly would real obstruction of justice look like it? It might be a deliberate effort by government officials to mislead and impede the proper conduct of a Foreign Intelligence Surveillance Court, in an effort to spy on an American citizen deemed useful in proving “collusion.”

That is, James Comey, Sally Yates and others signed FISA requests when they knew, but did not dare disclose to the court, that their sources of evidence—the Steele dossier and news accounts in circular fashion based on it—were unverified, products of Hillary Clinton’s bought oppositional research, and written by a contractor at the time fired by the FBI for unprofessional conduct.

Had Comey simply told the court that Clinton had paid for his evidence, that the Yahoo News account was not independent but based on the dossier, that he had fired Steele as an FBI collaborator, and that nothing in the dossier had been verified, then the court never would have granted him permission to spy on Trump campaign volunteer Carter Page. In other words, top FBI and Justice Department officials deliberately obstructed and essentially destroyed the normal protocols necessary to protect the sanctity of legal surveillance, during the election, the Trump transition, and the early Trump presidency.

Or maybe obstruction would be defined as the efforts of a recused attorney general like Loretta Lynch, who had stepped aside from the FBI probe of Hillary Clinton’s emails, to have met secretly on an airport tarmac with the spouse of the target of her department’s investigation.

Or would obstruction be classified as Lynch supposedly ordering the FBI not even to use the word “investigation” when it was investigating Clinton? Or would obstruction constitute deliberately destroying more than 30,000 emails under subpoena, in the fashion that Clinton ordered her aides to “bleach bit” her correspondence and destroy mobile communication devices?

Or would obstruction be classified as deleting emails germane to an investigation of the collusion scam in the fashion of Nellie Ohr erasing emails received from her husband’s government email account, or perhaps in the manner of Mueller team staffers who wiped clean the mobile phones of the fired Lisa Page and Peter Strzok?

Or would obstruction characterize the brag of the anonymous New York Times guest editorialist? He preened in a September 5, 2018 column that he was an unnamed high administration official and NeverTrump Republican who, along with like-minded “resistance” leaders, was trying his best to disrupt his own president’s governance. What would anonymous’s obstruction entail—deliberately ignoring legal mandates? Failing to follow new federal guidelines? Trying to subvert nominations? Illegally leaking to the press? Obstructing anything he did not like, whether in legal or illegal fashion?

Logan Acting

The pathetic attempt to invoke the ossified Logan Act—with two indictments and no convictions in the law’s 220-year history—by Sally Yates likely fueled much of the Trump collusion investigations, well before Mueller’s misadventure.

Yates testified before Congress that her theory of supposed violations of the Logan Act prompted her own request for FBI interviews with Michael Flynn. Trump’s first national security advisor had purportedly dared to talk about sanctions with the Russian ambassador during the Trump transition in the days before Obama left office. In other words, Obama officials believed there really was a viable Logan Act, or at least the façade of one that could be deemed useful to destroy a political opponent.

But for the sake of argument, assume it is unwise to allow any private citizen to subvert government foreign policy. What then would be a classical definition of a Logan Act violation?

Perhaps the ongoing efforts of former Secretary of State John Kerry fit the bill. During the lead-up to the Trump’s Administration’s cancelation of the Iran deal and in its aftermath, private citizen Kerry met with high Iranian officials and purportedly advised them how to obstruct or at least survive the ramifications of Trump’s new Iranian policies.

In spring 2018, Kerry’s sought out meetings with Iranian Foreign Minister Javad Zarif in Norway, Germany, and perhaps as well at United Nations headquarters in New York. He purportedly discussed ways to preserve the spirit of the prior Iran deal negotiated by the two—an agreement which was no longer official U.S. policy and had just been canceled by Trump.

In other words, the ex-secretary of state and, again, now private citizen Kerry met secretly with an Iranian foreign minister to brainstorm about how the elements of their deal might survive his own country’s current policies. Note that Senator Dianne Feinstein likewise just met with Zarif, a sort of copycat performance of House Speaker Nancy Pelosi’s 2007 meeting with the murderous Bashar al-Assad, who at the time was doing all he could to help Iran spike American deaths in Iraq.

If Kerry’s machinations were deemed grey violations of the Logan Act, how about the more overt recent efforts of another former State Department official Susan Thornton? Here is what she boasted about recently in Shanghai to an audience of Chinese analysts and academics:

I tell all our foreign counterparts they should keep steady, keep their heads down and wait. [They should] try to not let anything change dramatically . . . If this skeptical attitude towards talking diplomacy continues in this administration, you might have to wait till another administration . . . 

Thornton seems to be advising the likely veneer of the Chinese apparat and government to stall out the Trump Administration and thus wait to find a more familiar and compliant America that would follow past protocols. That advice might be taken to mean she is advising them to stonewall her current American president and find better ways to facilitate the accustomed serial Chinese patent and copyright infringement, dumping, currency manipulation, technological appropriation, massive trade and account surpluses, and imperialist initiatives in the South China Sea.

When Thornton crows, “I tell all our foreign counterparts” she seems to assume that she is playing the role of omnipotent shadow State Department grandee, whose message is geared to assist almost any power other than her own government.

Thornton’s advice is old news. It is simply a more muscular version of former Obama Pentagon official Rosa Brooks’ June 30, 2017 reassurance to the nation and the world (“3 Ways to Get Rid of President Trump Before 2020”) about how  best to depose the just inaugurated U.S. president without having to wait for a constitutionally mandated election in four years.

After just a week of Trump in office, Brooks had concluded Trump had to go. Her blueprint for his forced retirement was in an apparent answer to “the question being asked around the globe” (note how our would-be best and brightest always boast of having their hands on the pulse of the like-minded global elite).

Presumably Brooks would reassure her foreign friends and kindred Democrats at home that Trump most certainly could be stopped after just a few days in office—if only the right people began the right adoption of her tripartite strategy of either impeachment, removal under the 25th Amendment, or an outright military coup (e.g., “The fourth possibility is one that until recently I would have said was unthinkable in the United States of America: a military coup, or at least a refusal by military leaders to obey certain orders.”)

The revolutionary Brooks could sum up Trump after a few days in office as a likely target of a military plot (one far more likely to have been successful than Andrew McCabe’s later comical 25th Amendment effort to record Trump secretly and then convince the Cabinet of his mental derangement). Brooks ended her scenarios with a triumphant approval of the idea of a revolutionary coup d’étatnever before seen in our history: “For the first time in my life, I can imagine plausible scenarios in which senior military officials might simply tell the president: ‘No, sir. We’re not doing that,’ to thunderous applause from the New York Times editorial board.”

Noble Dangerous Leaking

Lately, House impeachment hounds Nadler and Schiff have whined that Trump’s effort to declassify government intelligence records concerning the collusion scheme poses a grave threat to national security. In other words, the chronic leakers who recently demanded an unredacted Mueller report and serially leak supposed impending “bombshells,” suddenly have become anti-leakers and pro-redactors. The only common denominator in their chameleonism is Trump hatred.

But what would dangerous and illegal leaking consist of?

James Comey leaking to media conduits classified, private-one-on-one presidential conversations to prompt the appointment of a special prosecutor?

Andrew McCabe feeding the media self-serving hoaxes about collusion?

Former Director of National Intelligence James Clapper seeding to CNN the private Comey briefing with President Trump—and then deploring such illegal leaks, as he leveraged that scoop to land himself a future CNN analyst billet?

FBI sources planting stories of pre-election “collusion” with Yahoo and Mother Jones?

Or how about leaks to tip off the media about the timing Roger Stone arrest? Or periodic Mueller team “walls are closing in” and “noose is tightening” leak-lies to the obsequious media?

What have we learned about the Left’s moralistic talk of Trump’s supposed collusion, obstruction, Logan Act violations, and leaking?

  • One, that these are all projections of real resistance behavior. The zeal to remove Trump by any means necessary justified colluding with Russians, obstructing justice, undermining his administration abroad, and chronic leaking.
  • Two, these deep-state and media elites are narcissistically delusional. So inured are they to deference that they really believed they should have the power, indeed the right, to subvert democracy, to overturn a U.S. election on the justification that the wrong voters had voted for the incorrect candidate and both needed to be corrected by the right people. All that is why the last 28 months have been both scary and dangerous.

Real coups against democracies rarely are pulled off by jack-booted thugs in sunglasses or fanatical mobs storming the presidential palace. More often, they are the insidious work of supercilious bureaucrats, bought intellectuals, toady journalists, and political activists who falsely project that their target might at some future date do precisely what they are currently planning and doing—and that they are noble patriots, risking their lives, careers, and reputations for all of us, and thus must strike first.

END

SWAMP STORIES/KEY STORIES/KING REPORT

COURTESY OF CHRIS POWELL OF GATA)

Chinese regulator to take over Baoshang Bank due to credit risks [Big wakeup call on Friday]

There is concern this will add to the vulnerability of country’s financial system amid the economic slowdown.  Baoshang had a total of 156.5 billion yuan ($22.68B) of outstanding loans by the end of 2016, a 65% jump from the end of 2014… non-performing loan ratio was at 1.68% as of December 2016…   https://in.reuters.com/article/us-china-banks-regulator-baoshang-bank-idINKCN1SU1DN

China Warns Traders of ‘Huge Loss’ If They Short the Yuan

https://www.bloomberg.com/news/articles/2019-05-26/china-warns-traders-of-huge-loss-if-they-short-the-yuan

The EU Establishment and elites suffered unexpected losses in the EU Parliamentary Elections.

European elections 2019: Brexit Party tops South East poll [Farage elected; Scotland votes pro-EU]

https://www.bbc.com/news/uk-england-48417564

Le Pen beats Macron in France as nationalists gain in EU vote https://reut.rs/2HV6yMf

@AP: European Parliament projection indicates major losses for mainstream centrists, rise for far-right and Greens.  https://apnews.com/2c137002ee4844b7ac4d2f33e626419f

Greece’s Tsipras calls snap election after EU poll drubbing – Leftist Syriza party falls far behind opposition New Democracy.  https://www.politico.eu/article/greece-alexis-tsipras-calls-snap-election-after-eu-poll-drubbing-syriza/

@tomhfh: The Brexit Party on 29 seats are now the largest single party in the European Parliament.

2019 European election results – European Parliament [Salvini wins in Italy]

https://graphics.france24.com/results-european-elections-2019/?ref=tw_i

Italy Risks $4 Billion EU Penalty for Failing to Curb Debt

https://www.bloomberg.com/news/articles/2019-05-27/italy-risks-4-billion-eu-fine-over-failure-to-rein-in-its-debt

China Commits to Trade Talks amid ‘Groundless’ Huawei Moves

  • Chinese envoy says blacklisting Huawei could spark retaliation
  • There’s no discussion about Trump, Xi meeting for trade deal

Cui said in an interview with Bloomberg TV Friday that China wants to continue working toward a trade agreement for President Donald Trump and Chinese President Xi Jinping to finalize…

https://www.bloomberg.com/news/articles/2019-05-24/china-says-committed-to-trade-deal-calls-huawei-move-unusual

@HuXijin_GT: President Trump on Thursday predicted a swift end to China-US trade war. This kind of confidence believing that the US can quickly press China to submit is the biggest obstacle to reaching a deal. The trade war may last for a long time. I think people better not hold illusion.

Dismal US Durable Goods Orders for April, including a big downward revision for March, weighted on stocks, particularly the DJTA, which was -0.9% minutes before the European close.

  • Apr Durable Orders -2.1%, -2% expected; March +1.7% from 2.6% prior
  • Apr Ex-Trans unch, +0.1% expected; March -0.5% from +0.3% prior
  • Apr Nondef ex-Air -0.9%, -0.3% expected; March -0.6% from unch prior
  • Apr Nondef ex-Air Shipments unch, -0.1% expected; March -0.6% from unch prior

Trump’s Thursday U-turn on China trade and Huawei enraged trade and national security hawks.

@RHFontaine: Suggesting that the US would trade Huawei for, say, soybean purchases, seriously undercuts the argument that an acute security threat is at stake. Yet that’s precisely the argument the admin has made to the world. Need to rule out such horse trading.

China’s biggest chip maker, SMIC, to withdraw from New York Stock Exchange as trade spat with US spills over to technology sector

The sudden move comes as Washington steps up efforts to cut off US technology from China

https://www.scmp.com/business/article/3011737/chinas-biggest-chip-maker-smic-withdraw-new-york-stock-exchange-trade-spat

Freight Market Shifts into Lower Gear – Moderating demand, weaker prices are raising concerns among goods-haulers after last year’s red-hot U.S. shipping market

Prices on the spot trucking market, where businesses book last-minute transportation, were down 16% in April compared with the prior year… The Cass Freight Index for shipments dropped 3.2% in April, the fifth straight month in negative territory…

https://www.wsj.com/articles/freight-market-shifts-into-lower-gear-11558690202?shareToken=st891744644b034af5b0cc32b069e2f34e

 

Maersk Shares Tank after CEO Talks to Analysts about Trade War

New tariffs seen weighing on global container volume growth

    Volumes on trans-Pacific trade btw Asia & North America have already shown signs of decline…global container trade grew just 1.7% in Q1 from a year earlier…compared w/3.6% for all of 2018…

https://www.bloomberg.com/news/articles/2019-05-24/maersk-warns-of-considerable-uncertainties-amid-trade-war

 

Trump Administration Preparing Executive Order on Health-Cost Disclosure – Directive for price transparency could be released next week amid growing pushback against industry’s secrecy

https://www.wsj.com/articles/trump-administration-preparing-executive-order-on-health-cost-disclosure-11558690320

Rumors Swirling that Fired Italian Spies Were Connected in Plot to Eliminate Trump

Members of Italian intelligence were approached by Hillary Clinton, the Obama Administration, and the Deep State in order to frame Trump by PLANTING EVIDENCE on American servers to force Trump to step down from office… The plan was for Italian Intelligence to hack into these servers, plant classified emails from Hillary’s servers inside these servers on American soil, and then alert the FBI…

https://www.thegatewaypundit.com/2019/05/exclusive-rumors-swirling-that-fired-italian-spies-were-connected-in-plot-to-eliminate-trump/

 

@paulsperry_: Note which intelligence agency is missing from POTUS memo directing cooperation with Barr. Right, the NSA. That’s because the NSA has been fully cooperating, including its former director under Obama [Adm. Rogers, exposed illegal unmasking & spying on DJT at Trump Tower]

      There’s no way in hell the former AG & FBI director used state surveillance powers to spy on 4+ members of the opposing presidential campaign w/o the president authorizing it or at least knowing about it. Why Obama’s laying low, not endorsing Biden (who OTOH HAS stuck his neck out)

 

Now that DJT has unleashed the Kraken (Barr), elements in the Deep State are in a panic.  They whined to their favorite MSM journalists and complained that national security will be jeopardized.

 

WaPo’s @costareports: “Stripping the intel leaders of their ability to control information about sources and methods, and handing that power to political actors, could cause human agents to question whether their identity will be protected,” Jeremy Bash [Obama CIA COS] tells Post. “This is dangerous territory.”

@ByronYork: The intelligence agencies have to be under the control of the political branches. The other way around is a very bad idea. In any event, look for IC to strike back at some point

 

@ChuckRossDC: Brennan and other ex-CIA officials fume about declassification order, but ignore that gov’t officials have already leaked a ton of source/method info that was considered negative for Trump.

https://dailycaller.com/2019/05/25/brennan-sources-methods-cia-barr/

 

John Brennan Freaks, Continues Meltdown Following Trump’s Declassification Order

https://www.thegatewaypundit.com/2019/05/john-brennan-freaks-continues-meltdown-following-trumps-declassification-order-video/

 

@SaraCarterDC: Do you think @JohnBrennan is trying to obstruct justice by calling upon Dan Coats and Gina Haspel to “Stand-up” to DOJ & AG Barr Review and @POTUS’ Declassification Order?

 

@Comey: … What impact will loose talk about “spying” and disgraceful talk about “treason” have on FBI agents and analysts? [Comey panic, uses strawman defen.]

 

We are old enough to remember that in 2014 the MSM in demanded that Obama fire Brennan for spying on Senators and lying to Congress about it.  But, BHO & Brennan apparently had other schemes.

 

Adam Schiff: Trump is ‘Stonewalling the Truth’ By Declassifying Information

https://saraacarter.com/adam-schiff-trump-is-stonewalling-by-declassifying-information/

 

Schiff whined that Trump and Barr are “weaponizing” intel agencies against their enemies.  Like Karl Marx reportedly said, “Accuse the other side of that which you are guilty.” [Also attributed to Lenin]

 

@RepAdamSchiff on 4:10 PM – 17 Dec 2016: President Obama can and must declassify as much as possible about Russia hacking our elections. Rest assured, Trump won’t. [Now Schiff complains!]

 

@TomFitton: Rep. Schiff and many fellow Dems angry about @RealDonaldTrump transparency order because it will expose their involvement in the Russiagate lies/Spygate/coup attack.

 

@johncardillo: Funny how the NYTimes, WaPo, CNN, and MSNBC were fine with printing or airing classified intel when it potentially damaged Trump and the GOP, but are now aghast that Barr has the authority to declassify docs damning to Obama, Hillary, and Dems.

 

@JohnOSullivanNR: Spygate is the first American scandal in which the government wants the facts published transparently but the media want to cover them up.

 

@JackPosobiec: Samantha Power targeted any call made about Israeli settlements for unmasking. When she found Gen Flynn making calls she opposed, she passed information to Sally Yates who opened Logan Act investigation. DNI Coats has now reviewed all unmaskings – @OANN  White House plans to declassify documents showing that Samantha Power was on a “one-woman crusade” for the Palestinians and against Israel in 2016. Repeated unmakings were used to ensure her effort did not fail

 

CYA and finger pointing by FBI/DoJ and Intel officials and ex-officials is in full bloom.

 

Ex-FBI lawyer: Page FISA application approved in ‘unusual’ way by McCabe, Yates, & Baker

Anderson said the “linear path” those applications typically take was upended in October 2016, with FBI Deputy Director Andrew McCabe and Deputy Attorney General Sally Yates signing off on the application before she did. Because of that unusual high-level involvement, she didn’t see the need to “second guess” the FISA application…

https://www.washingtonexaminer.com/news/ex-fbi-lawyer-carter-page-fisa-application-approved-in-unusual-way-by-mccabe-yates-and-baker

 

Democrat Feinstein Has Private Dinner with Iranian Foreign Minister — Then Lies and Says State Dept. OKed It – Feinstein’s office said the dinner was arranged with consultation with the State Department.  However …

-END-

WILL SEE YOU WEDNESDAY NIGHT

H

 

 

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