JUNE 10/GOLD DOWN $16.40 TO $1325.50//SILVER DOWN 38 CENTS TO $14.66 AS OUR BANKERS ORCHESTRATED A RAID//GLD LOSES ANOTHER 1.17 TONNES OF GOLD//CHINA’S EXPORTS TO THE USA SLOWS DOWN DRAMATICALLY// CHINA ADDS ANOTHER 16 TONNES OF GOLD INTO ITS OFFICIAL HOARD//SUPPOSEDLY THE MEXICO SIGNS A DEAL WITH THE USA TO HELP WITH ILLEGAL IMMIGRATION//MORE SWAMP STORIES TONIGHT//

 

 

GOLD: $1325.50  DOWN $16.40 (COMEX TO COMEX CLOSING)

Silver:  $14.66 DOWN 38 CENTS  (COMEX TO COMEX CLOSING)//

 

Closing access prices:

Gold : $1328.00

 

silver:  $14.71

 

 

 

 

YOUR DATA…

 

 

 

COMEX DATA

 

 

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

today RECEIVING 0/2

EXCHANGE: COMEX
CONTRACT: JUNE 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,341.200000000 USD
INTENT DATE: 06/07/2019 DELIVERY DATE: 06/11/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
323 H HSBC 2
686 C INTL FCSTONE 1
905 C ADM 1
____________________________________________________________________________________________

TOTAL: 2 2
MONTH TO DATE: 539

 

 

 

NUMBER OF NOTICES FILED TODAY FOR  MAY CONTRACT: 2 NOTICE(S) FOR 200 OZ (0.0064 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  539 NOTICES FOR 53900 OZ  (1.6765 TONNES)

 

 

 

SILVER

 

FOR JUNE

 

 

1 NOTICE(S) FILED TODAY FOR 5,000  OZ/

 

total number of notices filed so far this month: 309 for 1545,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 7639 UP 52 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 7907 UP 289

 

 

 

 

end

 

XXXX

 

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE A STRONG  SIZED 2772 CONTRACTS FROM 219.051 UP TO 221,823 WITH THE GOOD 12 CENT GAIN IN SILVER PRICING AT THE COMEX.( LIQUIDATION OF THE SPREADERS HAVE STOPPED FOR SILVER AND IT STOPPED FOR GOLD AS WELL. WE WILL WITNESS A RISE IN THE SPREADERS IN SILVER ONCE WE START TRADING IN JUNE… READY FOR THE FIRST DAY NOTICE JULY CONTRACT.) TODAY WE ARRIVED FURTHER FROM 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 VERY HUGE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:

 0 FOR MAY, 0 FOR JUNE, 4032 FOR JULY AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  4302 CONTRACTS. WITH THE TRANSFER OF 4302 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 4302 EFP CONTRACTS TRANSLATES INTO 20.16 MILLION OZ  ACCOMPANYING:

1.THE 12 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

1.560 MILLION OZ STANDING FOR SILVER IN JUNE//

 

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

19,351 CONTRACTS (FOR 6 TRADING DAYS TOTAL 19,351 CONTRACTS) OR 96.755 MILLION OZ: (AVERAGE PER DAY: 3225 CONTRACTS OR 16.13 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JUNE:  96.755 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 11.09% 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:          985.47    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.

MAY 2019: TOTAL EFP ISSUANCE:                                                136.55 MILLION OZ

RESULT: WE HAD A HUGE SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 2948 WITH THE GOOD 12 CENT GAIN IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A VERY LARGE SIZED EFP ISSUANCE OF 2719 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 WILL RESUME THEIR LIQUIDATION OF THE SPREAD TRADES FOR SILVER ONCE THE JUNE CONTRACT COMMENCES IN EARNEST….

TODAY WE GAINED A VERY STRONG SIZED: 6804 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 4032 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 2772  OI COMEX CONTRACTS. AND ALL OF THIS HUGE DEMAND HAPPENED WITH A 12 CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $15.03 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. 1.082 BILLION OZ TO BE EXACT or 152% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 1 NOTICE(S) FOR 5,000 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/ A MAY:  18.845 MILLION OZ ..JUNE 1.560 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)

.

WITH RESPECT TO SPREADING:  WE  PROBABLY HAD STRONG ACTIVITY OF  SPREADING ACCUMULATION IN SILVER 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 WILL NOW SWITCHED TO SILVER AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX SILVER 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 JUNE BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN SILVER WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING ACTIVE DELIVERY MONTH (JULY), 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.” 

 

IN GOLD, THE OPEN INTEREST ROSE BY A  STRONG SIZED 8,375 CONTRACTS, TO 501,322 WITH THE GOOD $3.50 PRICE GAIN WITH RESPECT TO COMEX GOLD PRICING FRIDAY// /THE SPREADING LIQUIDATION HAS STOPPED AND THESE SPREADING FELLOWS HAVE ALREADY MORPHED INTO SILVER.   THE GAIN IN OI GOLD CONTRACTS IS REAL AND NOT PUMPED UP BY SPREADING.   

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A HUGE SIZED 13,862 CONTRACTS:

APRIL 0 CONTRACTS,JUNE: 0 CONTRACTS, AUGUST 2019: 13,862 CONTRACTS, DEC>  0 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 501,322.  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 AN ATMOSPHERIC SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 22,237 CONTRACTS: 8375 CONTRACTS INCREASED AT THE COMEX  AND 13,862 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 22,237 CONTRACTS OR 2,223,700 OZ OR 69.17 TONNES.  YESTERDAY WE HAD A SMALLISH GAIN OF $3.50 IN GOLD TRADING….AND WITH THAT GAIN IN  PRICE, WE  HAD A HUMONGOUS GAIN IN GOLD TONNAGE OF 69.17  TONNES!!!!!! THE BANKERS WERE SUPPLYING COPIOUS SUPPLIES OF SHORT GOLD COMEX PAPER.

 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF MAY : 80,146 CONTRACTS OR 8,014,600 OR 249.28 TONNES (6 TRADING DAYS AND THUS AVERAGING: 13,357 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 6 TRADING DAYS IN  TONNES: 249.28 TONNES

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

THUS EFP TRANSFERS REPRESENTS 249.28/3550 x 100% TONNES =7.02% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     2,527.19 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

MAY 2019 TOTAL ISSUANCE:                    449.10 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 STRONG SIZED INCREASE IN OI AT THE COMEX OF 8375 WITH THE PRICING GAIN THAT GOLD UNDERTOOK ON YESTERDAY($3.50)) //.WE ALSO HAD A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 13,862 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 13,862 EFP CONTRACTS ISSUED, WE  HAD AN ATMOSPHERIC SIZED GAIN OF 22,237 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

13,862 CONTRACTS MOVE TO LONDON AND 8375 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 69.17 TONNES). ..AND THIS GAIN OF  DEMAND OCCURRED WITH THE RISE IN PRICE OF ONLY $3.50 WITH RESPECT TO FRIDAY’S TRADING AT THE COMEX. WE  HAD ZERO PRESENCE OF SPREADING ACCUMULATION IN GOLD  ///TODAY/

 

 

 

we had:  2 notice(s) filed upon for 200 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD DOWN $16.40 TODAY//

A BIG CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.17 TONNES FROM THE GLD.

 

 

 

 

INVENTORY RESTS AT 756.42 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 38 CENTS TODAY:

 

NO CHANGE WITH RESPECT TO SILVER INVENTORY  AT THE SILVER SLV

 

 

 

 

 

 

/INVENTORY RESTS AT 315.362 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 HUGE SIZED 2772 CONTRACTS from 219,051 UP TO 221,823 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 COMMENCED THEIR ACCUMULATION OF OPEN INTEREST CONTRACTS IN SILVER AND STOPPED THE LIQUIDATION OF THE SPREADERS IN 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: 4032 CONTRACTS  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 4032 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 2772 CONTRACTS TO THE 4032 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A VERY STRONG GAIN OF 6804 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 34.02MILLION 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  18.765 MILLION OZ FOR MAY AND NOW 1.570 MILLION OZ FOR JUNE.

 

 

RESULT: A LARGE SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 12 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// FRIDAY. WE ALSO HAD A HUGE SIZED 4032 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)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED DOWN UP 24.23 POINTS OR .86%  //Hang Sang CLOSED UP 613.36 POINTS OR 2.27%   /The Nikkei closed UP 249.71 POINTS OR 1.21%//Australia’s all ordinaires CLOSED UP .91%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9320 /Oil DOWN TO 52.49 dollars per barrel for WTI and 60.38 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.9320 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9535 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

The Chinese are very clever people.  They are dodging USA tariffs with fake “made in Viet Nam” tags

( zerohedge)

ii)China is indeed limiting its exports of rare earths as the trade war now accelerates\

(courtesy zerohedge)

 

 

 

4/EUROPEAN AFFAIRS

i) ITALY

 

An excellent commentary from tom Luongo as he highlights the Triumvirate of Conte, Tria and Mattarella who are backing Brussels trying to keep Italy in the EMU

(courtesy Tom Luongo)

ii)The ECB sends another trial balloon through Reuters stating that it is willing to cut rates.  It does not like to see its Euro exchange rate high as it is stifling growth in Germany et al. The problem of course, is that if the Euro is lowered so does the deposit rate which is already at record lows.

( zerohedge)

ii b)On the same subject as above:  European markets are not reacting to Draghi’s hinting of lower rates(a must read/John Rubino)

iii)Mish Shedlock explains to us the BREXIT situation and it is now up to Boris Johnson.  It is his to lose(courtesy Mish Shedlock/Mishtalk)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)IRAN/USA

Iran blasts Pompeo after the USA initiated more sanctions against Iranian petrochemical companies.  Iran’s economy is now in complete shambles

( zerohedge)

ii)This is bothersome:  The top Iranian diplomat states that the USA cannot expect to stay safe.  He also says that of Israel.
( zerohedge)

6. GLOBAL ISSUES

 

Mexico/USA

 

a)Peso rises after the USA Mexico migration  deal

(courtesy zerohedge)

b)Trump this morning states that another very important part of the Mexico deal is now finished.  The New York Times and the Washington post thinks that the deal is a phony

(courtesy zerohedge)

 

7. OIL ISSUES

a)For those of you who think that the USA economy is still executing on all 4 cylinders led by shale production:  guess again…the industry is nothing but a gusher of red ink…

(courtesy// Nick Cunningham)

b)Tom Luongo on the same subject as above

(courtesy zerohedge)

 

8 EMERGING MARKET ISSUES

 

i)VENEZUELA/

This is what happens to a rich country who embraced socialism

(courtesy zerohedge)

 

 

9. PHYSICAL MARKETS

i)Look now who is talking about manipulation!! Mnuchin is accusing China of manipulating its currency because of the tariffs.  However he says nothing of the uSA manipulating its stock market and the precious metals

(Karen Yeung/SCMP/GATA)

ii)Looby’s message:  The uSA may end its dollar dominance by doing stupid stuff

( Looby/GATA)

iii)Interesting:  Ghana now overtakes South Africa in gold production

(courtesy Bloomberg/GATA)

iv)Putin calls for deep reform and a removal from the USA dollar(courtesy Agence France-Presse/GATA)

v)China announces an increase in reserves of 15.6 tonnes last month.  China produces around 400 tonnes per year or 33.3 tonnes per month. No gold ever leaves China so they are continually hiding their gold stach.

(London’s Financial Times/GATA)

 

vi)Please support GATA as they are at the top trying to expose the crookedness of bankers

 

(Chris Powell)

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

 

 

MARKET TRADING//

a)Market trading/LAST NIGHT/

 

II)MARKET TRADING

 

ii)Market data

More indications that the uSA economy is faltering; job openings fall and layoffs pick up

(courtesy zerohedge)

 

iii)USA ECONOMIC/GENERAL STORIES

a)Trump reaches a deal with Mexico. Let’s see if they will abide by the conditions of  the agreement

( zerohedge)

b)Homelessness continues to rise in most major USA cities.

( Michael Snyder)

c)Peter Schiff believes very strongly that the Fed had no real intention for normalizing rates…it was a very big lie.  He also states that the Fed is lying about the strong USA economy..hit is very weak. He extends the USA to lower rates from the already low 2.5% and probably bring the rates down to zero trying to avoid the deflation of assets.a good one..

( Peter Schiff)

SWAMP STORIES

(courtesy zerohedge)

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 ROSE BY A STRONG SIZED 8375 CONTRACTS TO A LEVEL OF 501,322 WITH THE SMALLISH  RISE OF $3.50 IN GOLD PRICING WITH RESPECT TO FRIDAY’S // COMEX TRADING)

WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF JUNE..  THE CME REPORTS THAT THE BANKERS ISSUED A VERY STRONG SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 13,862 EFP CONTRACTS WERE ISSUED:

0 FOR JUNE ’19: 0 CONTRACTS , AUG; 13,862 CONTRACTS: DEC: 0   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  13,862 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 OUR LONGS GIVE UP THEIR COMEX CONTRACTS FOR THEM TO RECEIVE THEIR EFP’S AS THEY ARE NEGOTIATING THIS CONTRACT WITH THE BANKS FOR A FIAT BONUS PLUS THEIR TRANSFER TO A LONDON BASED FORWARD.

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES: 22,237 TOTAL CONTRACTS IN THAT 13,862 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED AM VERY STRONG  SIZED 8375 COMEX CONTRACTS.  THE BANKERS SUPPLIED THE NECESSARY SHORT PAPER IN GOLD TO CONTAIN THE PRICE RISE. 

 

NET GAIN ON THE TWO EXCHANGES ::  22,237 CONTRACTS OR 2,223,700 OZ OR 69.17 TONNES.

 

We are now in the  active contract month of JUNE and here the open interest stands at 1259 CONTRACTS as we lost 23 contracts.  We had  9 notices filed yesterday so we lost 14 contracts or 1400 oz of gold that will not  stand for delivery as there appears to be no gold at the comex and thus they morphed into London based forwards (as they are gave up on their luck on finding the fast vanishing supplies of physical gold over here) as well as accepting a fiat bonus for their effort.  The next contract month is the non active month of July and here the OI fell by 30 contracts down to 1230 contracts.  The next big active month for deliverable gold is August and here the OI rose by 6723 contracts up to 377,123.

 

 

 

 

 

TODAY’S NOTICES FILED:

WE HAD 2 NOTICES FILED TODAY AT THE COMEX FOR  200 OZ. (0.0064 TONNES)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total COMEX silver OI ROSE BY A HUGE SIZED 2772 CONTRACTS FROM 219L051 UP TO 221,823 (AND CLOSER TO THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S STRONG  OI COMEX GAIN OCCURRED DESPITE A SMALLISH 12 CENT RISE IN PRICING.//FRIDAY.

 

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF JUNE.  HERE WE HAVE 4 OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 1 CONTRACT.  WE HAD 0 NOTICES FILED ON FRIDAY SO WE GAINED 1 CONTRACT OR AN ADDITIONAL 5,000 OZ OF SILVER WILL STAND AT THE COMEX.  NOTICE THE DIFFERENCE BETWEEN GOLD AND SILVER.  WE STILL HAVE SOME PHYSICAL SILVER IN THE PITS AT THE COMEX AND THUS THE COMMERCIALS WILL GO AFTER THAT SUPPLY TO PUT OUT FIRES ELSEWHERE.  (WITH GOLD, THERE IS NO SUPPLY LEFT. OUR BANKER FRIENDS ARE IN DEEP TROUBLE WITH RESPECT TO GOLD.)

THE NEXT MONTH AFTER JUNE IS THE ACTIVE MONTH OF JULY.  HERE THE OI FELL BY 3711 CONTRACTS DOWN TO 147,6524.  WE GAINED 6 CONTRACTS OF OI FOR AUGUST TO STAND AT 319. THE NEXT BIG ACTIVE DELIVERY MONTH AFTER AUGUST IS SEPT AND HERE THE OI ROSE BY 4903 CONTRACTS UP TO 36,815 CONTRACTS.

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 1 notice(s) filed for 5,000 OZ for the JUNE, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY: 224,518  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  345,702  contracts

 

 

 

 

 

INITIAL standings for  JUNE/GOLD

June 10/2019

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
NIL
kilobars
Deposits to the Dealer Inventory in oz 32,215.302

oz

brinks

(arrived from JPMorgan)

1002 kilobars

 

 

 

 

 

 

 

 

 

 

Deposits to the Customer Inventory, in oz  

 

 

 

nil oz

hsbc

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

No of oz served (contracts) today
2 notice(s)
 200 OZ
(0.0064 TONNES)
No of oz to be served (notices)
1257 contracts
(125,700 oz)
3.909 TONNES
Total monthly oz gold served (contracts) so far this month
539 notices
52,900 OZ
1.6765 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

STILL: SUSPECT GOLD ENTERS THE GOLD COMEX

we had 1 dealer entry:

We had 2 kilobar entries

 

 

i) Into Brinks:  32,215.302 oz

1002 kilobars

arrived from JPMorgan

 

total dealer deposits: 32,215.302 oz

total dealer withdrawals: nil oz

 

we had 0 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into everybody else: nil  oz

 

 

 

total gold deposits: nil  oz

 

 very little gold arrives from outside/ nothing arrived   today

we had 1 gold withdrawal from the customer account:

 

 

Gold withdrawals;

i)  We had 0 withdrawal: out of JPMorgan: nil oz

 

.

total gold withdrawals; nil   oz

 

 

i) we had 1 adjustment today
i) Out of Int. Delaware:  56,517.00 oz was adjusted out of customer and this landed into the dealer account of Int. Delaware
(this is exactly 1758 kilobars)

FOR THE JUNE 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 2 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 0 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 JUNE /2019. contract month, we take the total number of notices filed so far for the month (539) x 100 oz , to which we add the difference between the open interest for the front month of  JUNE. (1259 contract) minus the number of notices served upon today (2 x 100 oz per contract) equals 179,600 OZ OR 5.562 TONNES) the number of ounces standing in this NON active month of MAY

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

No of notices served (539 x 100 oz)  + (1259)OI for the front month minus the number of notices served upon today (2 x 100 oz )which equals 179,600 oz standing OR 5.586 TONNES in this  active delivery month of JUNE.

We LOST 14 contracts or an additional 1400 oz will NOT  stand as these guys  morphed into London based forwards as they just could not find any  real, physical gold at the comex in New York.

 

 

 

 

SURPRISINGLY LITTLE TO NO  GOLD HAS BEEN ENTERING THE COMEX VAULTS AND WE HAVE WITNESSED THIS FOR THE PAST YEAR!!  WE HAVE ONLY 7.3210 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 5.586 TONNES OF GOLD STANDING// THEY SEEM TO BE USING CONSIDERABLE GOLD VAPOUR TO SETTLE UPON UNSUSPECTING LONGS.

 

 

 

 

total registered or dealer gold:  324,118.255 oz or  10.08 tonnes (we again had a huge adjustment yesterday of gold leaving the customer and entering the dealer//this is nothing but gold vapour)
total registered and eligible (customer) gold;   7,675,234.392 oz 238.72 tonnes

 

 

 

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

 

 

 

 

 

FOR THE INITIAL JUNE 2018 CONTRACT WE HAD A HUGE 32.152 TONNES STAND. (VS 5.586 TONNES TODAY/JUNE 2019)

HOWEVER BY MONTH’S END ONLY 21.56 TONNES EVENTUALLY STOOD AS THE REST MORPHED INTO LONDON BASED FORWARDS.  AS YOU CAN SEE, THE CROOKS ARE FOLLOWING THE SAME FORMAT OF MORPHING VS LAST YEAR AS ONLY GOLD VAPOUR SEEMS TO BE PHYSICALLY PRESENT AT THE COMEX AND LONGS MUST TRY THEIR LUCK IN LONDON.

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 June

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
june 10 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 989,326.626 oz
CNT
Brinks
Delaware

 

 

 

 

 

 

 

Deposits to the Dealer Inventory
NIL oz
Deposits to the Customer Inventory
1001.100 oz
Delaware
No of oz served today (contracts)
1
CONTRACT(S)
(5,000 OZ)
No of oz to be served (notices)
3 contracts
15,000 oz)
Total monthly oz silver served (contracts) 309 contracts

1,545,000 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  1 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

i)into Delaware: 1001.100 oz

 

 

 

 

 

total customer deposits today:  1001.100  oz

 

we had 3 withdrawals out of the customer account:

 

i) out of brinks:  377,243.890 0z

 

ii) out of Delaware:  12004.90 oz

iii)  out of CNT 600,677.836 oz

 

 

 

 

 

total 989,326.626  oz

 

we had 2 adjustments :

i) out of Brinks:  711,082.800oz was adjusted out of the dealer and this landed into the customer account of Brinks

ii) Out of Scotia: 10,595.170 oz was adjusted out of the customer and this landed into the dealer account of Scotia.

 

 

 

total dealer silver:  87.119 million

total dealer + customer silver:  301.991 million oz

 

The total number of notices filed today for the JUNE 2019. contract month is represented by 1 contract(s) FOR  nil oz

To calculate the number of silver ounces that will stand for delivery in JUNE, we take the total number of notices filed for the month so far at 309 x 5,000 oz = 1,545,000 oz to which we add the difference between the open interest for the front month of JUNE. (4) and the number of notices served upon today (1 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JUNE/2019 contract month: 309(notices served so far)x 5000 oz + OI for front month of MAY( 4) -number of notices served upon today (1)x 5000 oz equals 1,560,000 oz of silver standing for the JN contract month.

WE LOST 1 CONTRACT OR AN ADDITIONAL 5,000 OZ WILL NOT STAND AS THESE GUYS MORPHED INTO A LONDON BASED FORWARDS AND AS WELL THEY ALSO ACCEPTED A FIAT BONUS FOR THEIR EFFORT.

 

 

 

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 1 notice(s) filed for 5,000 OZfor the JUNE, 2019 COMEX contract for silver

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  108,276 CONTRACTS (we had considerable spreading activity..accumulation

 

 

 

 

 

 

CONFIRMED VOLUME FOR YESTERDAY: 129,438 CONTRACTS..(we no doubt had considerable spreading activity as they are now starting to accumulate in silver)

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 129,438 CONTRACTS EQUATES to 647 million  OZ 92.4% OF ANNUAL GLOBAL PRODUCTION OF SILVER

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

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

 

end

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

 

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV RISES TO -2.07% June 7/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.32% to NAV (june 7/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -2..07%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 13.09 TRADING 12.54/DISCOUNT 4.17

END

And now the Gold inventory at the GLD/

JUNE 10/WITH SILVER DOWN $16.40 TODAY: A BIG  CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 1.17 TONNES/INVENTORY RESTS AT 756.42 TONNES

june 7/WITH GOLD UP $3.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 757.59 TONNES

jUNE 6/WITH GOLD UP  $8.40 TODAY/NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 757.59 TONNES

JUNE 5 WITH GOLD UP $6.00 TODAY/STRANGE: A WITHDRAWAL OF 2.06 TONNES FROM THE GLD/INVENTORY RESTS AT 757.59 TONNES

JUNE 4/WITH GOLD UP 0.85 TODAY: A MONSTROUS PAPER GAIN OF 16.44 TONNES/GLD INVENTORY RESTS AT 759.65 TONNES

JUNE 3/WITH GOLD UP $17.50 TODAY: ANOTHER BIG CHANGE, A DEPOSIT OF 2.35 TONNES OF GOLD INTO THE GLD//

MAY 31/WITH GOLD UP $17.10 TODAY: NO CHANGES  IN GOLD INVENTORY AT THE GLD/GLD INVENTORY RESTS AT 740.86 TONNES

MAY 30: WI6H GOLD UP $6.40 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.52 TONNES/INVENTORY RESTS AT 740.86 TONNES

MAY 29/WITH GOLD UP $3.90 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 737.34 TONNES

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

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

JUNE 10/2019/ Inventory rests tonight at 756.42 tonnes

*IN LAST 607 TRADING DAYS: 177.55 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 507 TRADING DAYS: A NET 11.71 TONNES HAVE NOW BEEN REMOVED FROM THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

JUNE 10/WITH SILVER DOWN 38 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 315.652 MILLION OZ//

june 7/WITH SILVER UP ANOTHER 12 CENTS, NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 315.652 MILLION OZ//

jUNE 6/WITH SILVER UP ANOTHER 9 CENTS TODAY: A FAIR SIZE DEPOSIT OF 630,087 OZ//INVENTORY RESTS AT 315.652 MILLION OZ//

JUNE 5/WITH SILVER UP 4 CENTS TODAY: A HUGE PAPER DEPOSIT OF 2.396 MILLION OZ OF SILVER INTO THE SLV/INVENTORY RESTS AT 314.434 MILLION OZ//

JUNE 4/WITH SILVER UP 1 CENT TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 312.038 MILLION OZ//

JUNE 3/WITH SILVER UP 19 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 312.038 MILLION OZ//

MAY 31/WITH SILVER UP 6 CENTS TODAY: A DEPOSIT OF 422,000 OZ INTO THE SLV INVENTORY//INVENTORY RESTS AT 312.038 MILLION OZ/

May 30/WITH SILVER UP 19 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.616 MILLION OZ///

MAY 29/WITH SILVER UP 11 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 311.616 MILLION OZ//

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////

 

JUNE 10/2019:

 

Inventory 315.652 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 2.03/ and libor 6 month duration 2.37

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

G0LD LENDING RATE: + .34

 

XXXXXXXX

12 Month MM GOFO
+ 2.04%

LIBOR FOR 12 MONTH DURATION: 2.35

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.31

end

 

PHYSICAL GOLD/SILVER STORIES

 

end
i) GOLDCORE BLOG/Mark O’Byrne

Gold To Reach 6 Year High Over $1,400 on Uncertain Outlook for Global Markets

by Bloomberg

Gold is finally gaining the traction needed to boost prices to a level not seen since 2013 as concern mounts over increased trade war tensions and the global growth outlook.

GoldCore.com

Bullion may touch $1,400 an ounce this year as investors hedge risk, according to Rhona O’Connell, head of market analysis for EMEA and Asia regions at INTL FCStone Inc.

Spot gold was at about $1,326 an ounce on Monday after jumping to a 13-month high of $1,348.31 on Friday on the back of a weaker than expected U.S. jobs report for May.

“All the dominant asset classes have a question mark over them at the moment, which is generally when gold comes into play,” O’Connell said by phone before this week’s Asia Pacific Precious Metals Conference in Singapore.

Gold is seeing a revival after a lackluster few months as investors weigh the prospects for slowing global growth and increasing expectations that the Federal Reserve will cut interest rates. Volatility in stocks following the escalating U.S. trade tensions with China and then with Mexico, has led to a surge in demand for havens, with 10-year Treasury yields near a 2017 low and Wall Street’s biggest banks warning of growing recession risks.

“There’s enough elements of risk in the outlook for world economies, there’s still a degree of geopolitical risk, currencies are looking volatile, and the fact that the market’s looking at a recession, the equity markets are obviously under threat,” according to London-based O’Connell.

The steepening U.S. yield curve shows bond traders have concluded that the case for the Fed to cut rates is only strengthening. Last week, Chairman Jerome Powell signaled an openness to loosening, pledging to keep a close watch on the fallout from disputes between the U.S. and its largest partners.

“We are in the late end of the cycle, the Fed’s move is likely a cut, maybe it happens a little later than some are hoping for, but inevitably most likely, it will happen,” said Bart Melek, the global head of commodity strategy at TD Securities in Toronto, who’s also attending the conference.

He sees bullion hitting $1,400, but not until early 2020.

“As volatility increases and the risk of a correction in equity market increases, we’re going to start seeing more significant flows of capital into the gold markets,” said Melek, who sees prices in a range of $1,320 to $1,375 in the second half, and a 2020 fourth-quarter average of $1,425.

LBMA Gold Prices (USD, GBP & EUR – AM/ PM Fix)
07-Jun-19 1334.30 1340.65, 1049.16 1052.14 & 1184.19 1184.60
06-Jun-19 1336.65 1335.50, 1053.15 1051.17 & 1189.62 1185.92
05-Jun-19 1337.75 1335.05, 1052.01 1049.22 & 1185.38 1184.99
04-Jun-19  1323.60 1324.25, 1045.51 1043.77 & 1177.47 1177.26
03-Jun-19  1313.95 1317.10, 1039.47 1042.35 & 1175.99 1175.38
30-May-19 1276.45 1280.95, 1010.44 1015.92 & 1146.25 1151.70
29-May-19 1283.50 1281.65, 1016.02 1013.27 & 1151.04 1150.67
28-May-19 1283.90 1278.30, 1012.87 1008.20 & 1146.91 1142.29
27-May-19 UK Holiday

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

News and Commentary

Gold Market Stretches Gains to 8th Session After Weak Jobs Growth  

China’s Gold Reserves Grow for 6th Straight Month

Trump Is ‘perfectly Happy’ to Hit China With New Tariffs if Xi Meeting Doesn’t Go Well: Mnuchin

Oil Just Had Its Worst Run Since 2008

Global Trade Heading for Worst Year Since Financial Crisis – ING

Watch video here

“Global Trade Conflicts Should See Gold Continue to Outperform”  – Goldcore

China Is Buying More and More Gold as the Trade War Drags On

Gold Looks Headed Toward Six-Year High as Global Markets Outlook Dims

Putting America First May End Dollar Dominance

Gold Giants Battling to Lure Back Investors Who Fled Industry   

Gold Production In South Africa Continues to Fall – Now 2nd Largest Producer in Africa After Ghana

 

Mark O’Byrne
Executive Director
end

Look now who is talking about manipulation!! Mnuchin is accusing China of manipulating its currency because of the tariffs.  However he says nothing of the uSA manipulating its stock market and the precious metals

(Karen Yeung/SCMP/GATA)

Manipulation is when you stop manipulating, treasury secretary says

 Section: 

China Is Letting Value of Yuan Slide to Offset Trade War Tariffs, US Treasury Secretary Steven Mnuchin Says

By Karen Yeung
South China Morning Post, Hong Kong
Saturday, June 8, 2019

U.S. Treasury Secretary Steven Mnuchin today accused China of allowing the value of its currency to slide in a bid to offset the impact of Washington’s trade tariffs on the cost of its goods to American consumers.

“It’s not coincidental in my mind that the currency has moved from approximately 6.30” yuan to the U.S. dollar “to 6.90,” the official said on the sidelines of the G20 finance leaders’ meeting in Japan.

… 

 

Traditionally to manipulate a currency, official intervention in the foreign exchange market has to be conducted in a certain way. Intervening to support the currency’s exchange rate is not regarded as currency manipulation,” he said.”However, when the market is expecting intervention because there have been interventions to support a currency for a very long time — whether by China or any other country — then when there is no intervention, that could create a big market impact,” he said. “The decision not to intervene after intervening for a very long period of time may lead the market to view that there is a desire to have the currency to weaken.” …… For the remainder of the report:https://www.scmp.com/news/china/diplomacy/article/3013678/china-letting-…

* * *
Help keep GATA goingGATA 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.orgTo contribute to GATA, please visit:http://www.gata.org/node/16

end

Putin calls for deep reform and a removal from the USA dollar

(courtesy Agence France-Presse/GATA)

Putin says role of dollar should be reconsidered in world trade

 Section: 

From Agence France-Presse
via The Business Times, Singapore
Friday, June 7, 2019

https://www.businesstimes.com.sg/government-economy/putin-says-role-of-d…

ST. PETERSBURG, Russia — Russian leader Vladimir Putin on Friday renewed calls to revisit the role of the U.S. dollar in global trade and accused Washington of seeking to dominate the world.

Speaking at an economic forum alongside Chinese President Xi Jinping, the Russian president called for deep reform, claiming that trust in the dollar had been on the decline.

… Changes in the global economy “call for the adaptation of international financial organisations, rethinking the role of the dollar, which … has turned into an instrument of pressure by the country of issue on the rest of the world,” Mr. Putin said.

The Kremlin chief, whose country has chafed under numerous rounds of U.S. sanctions, has repeatedly slammed the global financial system established by Washington in the aftermath of World War II.

In a speech at a plenary session, Mr. Putin accused Washington of seeking to “extend its jurisdiction to the whole world.”

“But this model not only contradicts the logic of normal international communication. The main thing is, it does not serve the interests of the future.”

* * *

end

Looby’s message:  The uSA may end its dollar dominance by doing stupid stuff

(courtesy Looby/GATA)

John Looby: Putting America first may end dollar dominance

 Section: 

By John Looby
The Sunday Times, London
Sunday, June 9, 2019

https://www.thetimes.co.uk/edition/ireland/putting-america-first-may-end…

For three-quarters of a century, the hegemony of the dollar and its role as the global reserve currency has been secure. Even the break with gold, and the effective collapse of Bretton Woods in 1971, served only to strengthen rather than weaken its position. Crucially, the dominance of the dollar was cemented by the big oil-exporting states — led by Saudi Arabia — asking for payment exclusively in US dollars.

More recently, China has played a central role. Thirty years ago, Sino-US trade was essentially irrelevant. Since then, the trade relationship has exploded, with the US consuming vastly more than the value of its output, and China doing the mirror opposite. By choosing to direct the vast bulk of its dollars into US treasuries, China is now the biggest private creditor of the US federal government, and arguably the single biggest supporter of the dollar.

Although the US economy today is roughly the same size as the EU — accounting for just over a fifth of global GDP — the dollar still accounts for almost three-quarters of global foreign exchange reserves, and almost 90% of global foreign exchange transactions.

In his insightful 2010 book, “Exorbitant Privilege: The Rise and Fall of the Dollar and the Future of the International Monetary System,” economic historian Barry Eichengreen concludes the likelihood of continuing dollar dominance remains high. Yet his reasoning has a caveat: “Serious economic and financial mismanagement by the United States is the one thing that could precipitate flight from the dollar. And serious mismanagement is not something that can be ruled out. We may yet suffer a dollar crash, but only if we bring it upon ourselves.”

Grappling with the likelihood of such US self-harm, the post-war path of the UK and its troubled currency is instructive.

In 1945, the UK had an extensive empire, formidable armed forces and a globally significant currency. It was also a nuclear power, a permanent member of the UN security council and a serious presence across Asia, Africa and the Middle East. Notwithstanding its relative decline, disproportionate power and prosperity continued to beckon.

But the reckless risk of the Suez Crisis in 1956 — where the threat to sterling from the Oval Office proved decisive — effectively ended the UK’s autonomy. Never again would it be free to act without the imprimatur of the White House. The overestimation of its power had proven calamitous.

By 1976 the UK economy was widely and accurately known as “the sick man of Europe”. Mired in industrial strife and with sterling crashing again, the Callaghan government had little choice but to seek a humiliating IMF bailout in the form of a huge dollar loan. The telling image of the chancellor of the exchequer Denis Healy at Heathrow airport, forced to abandon a trip to Hong Kong and return to the treasury to apply for the loan, captured vividly the loss of power and prestige.

The more sanitised version of the Obama doctrine is: “Don’t do stupid stuff.” Generally seen as a pithy insight guiding his approach to foreign policy, it arguably summarises the broad approach of post-war US policy in many areas. For decades, as the architect and chief beneficiary of the post-1945 global order, America has adroitly defended and extended the reach and the power of the rules-based multilateral system.

The end of US dominance was never likely to be smooth. But compared with his post-war predecessors, the current occupant of the White House has a radically different view of the power and interests of the US. The evidence is accumulating that the benign rationality of US engagement with the rest of the world has inverted.

The possibility that this may undermine the dominance of the dollar is now real and growing. The salutary experience of the UK highlights the cost of myopic and reckless decisions. China, for example, can direct its dollars wherever it chooses. While buying treasuries has been its historic choice, future choices may well be different.

More generally, a new era may be dawning where policymakers and investors across the globe are losing a long-standing constant, while the US faces the loss of a valuable privilege chasing a delusional fantasy to put “America First”. Like sterling before it, there is nothing inevitable or immortal about the dominance of the dollar.

It’s time for investors to review their exposure to dollar-denominated assets. Complacent inertia could prove very costly.

—–

John Looby is a senior portfolio manager at KBI Global Investors. The views expressed are his own.

… 

end

Interesting:  Ghana now overtakes South Africa in gold production

(courtesy Bloomberg/GATA)

The African nation built on gold, loses its production crown to a rival

 Section: 

By Felix Njini
Bloomberg News
Sunday, June 9, 2019

The country that led global gold production for a century and extracted about half the bullion ever mined is now Africa’s second-largest gold producer. Output is shrinking as operators capitulate to stubbornly high costs, regular strikes and the geological challenges of tapping the world’s deepest mines.

Meanwhile, Ghana, a country whose gold mining industry dates back to the 19th century, is benefiting from lower-cost mines, friendlier policies and new development projects.

..South African industry stalwarts AngloGold Ashanti Ltd. and Gold Fields Ltd. are shifting their focus to other countries — including Ghana — where deposits are cheaper and easier to mine. The largest remaining gold miner in South Africa, Sibanye Gold Ltd., is cutting thousands of jobs and diversifying into platinum group-metals as it struggles to contain costs.

The difficulties facing South African gold mines mean output is contracting even though it’s got the world’s second-largest reserves of the metal, according to estimates from the U.S. Geological Survey. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-06-09/nation-built-on-gold-…

end

Please support GATA as they are at the top trying to expose the crookedness of bankers

 

(Chris Powell)

If GATA is doing the right thing, please consider helping us

 Section: 

12:11p ET Sunday, June 9, 2019

Dear Friend of GATA and Gold:

For years GATA’s officers have marveled among themselves that central banking’s gold price suppression policy couldn’t get more obvious, and each time we have been proven wrong. But in a way that may be an indicator of a certain amount of success for the organization.

For with its research, documentation, interpretation, aggregation of relevant news, complaint, and clamor, GATA does seem to have made it harder for central banks to cover their tracks in the gold market. More analysts are either acknowledging that the gold market isn’t free or are ceasing their silly denials of surreptitious market manipulation undertaken or underwritten by governments.

The futures markets, to which central banks retreated with gold price suppression policy when outright and public dishoarding of gold reserves began to fail in the 1960s and 1970s, are showing more signs of strain and producing more crazy anomalies.

Government officials themselves increasingly talk in public about gold’s potential to compete with or even supplant the U.S. dollar in the world financial system, the more so as the United States is weaponizing the dollar and, it seems, threatening to expel nearly everybody from the dollar system, as if the system then would be of any use even to the United States itself.

The rising gold prices of the last few weeks give hope that markets are starting to understand what has been going on for so long. GATA is not the rooster of fable who thought his crowing made the sun rise, but if we have revealed or publicized information that has increased this understanding around the world, maybe we fairly can claim to have hastened the day of deliverance from the totalitarianism and imperialism represented by gold market rigging — hastened the transition to limited and accountable government, fair dealing among nations, free markets, and democracy.

Of course others are far better suited to this work and more obliged to take it on — the monetary metals mining industry itself, its trade organizations like the World Gold Council, and most of all mainstream financial news organizations. When they do their duty GATA will be glad to withdraw. We never meant this work to become a career. Indeed, if it becomes a career, it will have been a failure, and there are many other walls against which one’s head well may pound, if not many that are higher, thicker, and more sinister.

So with your help we aim to press on indefinitely. Our officers lately have been doing many more interviews than usual and some of them have been quite successful in building interest in our issue. Our e-mail dispatch list recent surpassed 8,000 addresses, indicating that our reach is growing, even as we already knew that only a small fraction of the people on that list have contributed to us financially.

So if you have not already made a donation, please consider making one now. To support its work GATA should be trying to raise money constantly, but we’re a small organization and not terribly adept at it. Further, of course, the monetary metals sector has been demoralized for years.

Being up against nearly all the money and power in the world, GATA can’t promise victory, just to keep trying. But Isaiah prophesizes that strength will come to those who do the right thing, and history shows that the bad guys lose when they go too far. So if we are doing the right thing, we’ve got a chance, because the bad guys have gone way too far here.

Since GATA is a tax-exempt 501-c-3 civil rights and educational organization under the U.S. Internal Revenue Code, donations are federally tax-deductible in the United States. To donate, please visit our internet site here:

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

Even a contribution of $1 will be a dollar more than GATA has received or is ever likely to receive from Newmont Mining and Barrick Gold. Their indifference will make your generosity even more appreciated.

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

… end

China announces an increase in reserves of 15.6 tonnes last month.  China produces around 400 tonnes per year or 33.3 tonnes per month. No gold ever leaves China so they are continually hiding their gold stach.

(London’s Financial Times/GATA)

China announces gold reserve increase for sixth straight month

 Section: 

China Gold Reserves Climb for Sixth Month in May

By Alice Woodhouse
Financial Times, London
Monday, June 10, 2019

https://www.ft.com/content/ca50aa10-8b18-11e9-a1c1-51bf8f989972?desktop=…

China increased its gold purchases for the sixth month running in May, taking its total reserves to 1,916 tonnes, while the country’s foreign exchange holdings defied expectations for a fall.

The People’s Bank of China bought 15.6 tonnes of the precious metal last month, according to the central bank.

The country has accumulated 74 tonnes of the precious metal since the end of November, when it initially began ramping up purchases, according to Refinitiv data. The value of its reserves has risen to $79.8 billion as US-China trade tensions have rumbled on.

end

GATA STORIES WITH RESPECT TO GOLD/PRECIOUS METALS.

 



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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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
GOLD//SILVER TRADING TODAY:

 

end

* * *

Your early MONDAY morning currency, Asian stock market results,  important USA/Asian currency crosses, gold/silver pricing overnight along with the price of oil Major stories overnight/7 AM EST

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 6.9320/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.9535   /shanghai bourse CLOSED UP 24.23 POINTS OR .86%

HANG SANG CLOSED UP 613.36 POINTS OR 2.27%

 

2. Nikkei closed UP 249.71 POINTS OR 1.21%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index UP TO 96.84/Euro FALLS TO 1.1310

3b Japan 10 year bond yield: FALLS TO. –.12/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.62/ 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:: 54.11 and Brent: 63.40

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.23%/Italian 10 yr bond yield DOWN to 2.41% /SPAIN 10 YR BOND YIELD DOWN TO 0.61%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.64: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 2.85

3k Gold at $1335.00silver at: 14.91   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 6/100 in roubles/dollar) 64.73

3m oil into the 54 dollar handle for WTI and 63 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 108.62 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 .9909 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1199 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 0.23%

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 2.14% early this morning. Thirty year rate at 2.62%

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

6.  TURKISH LIRA:  UP  TO 5.8004..

 

Global Stocks Race HIgher On Trade Deal, Rate Cut Hopes As Yuan Tumbles, UK Economy Implodes

June’s euphoric rebound from the May slump continued on Monday, as European shares followed Asian stocks higher on Monday after the United States ended plans to impose tariffs on Mexico (at least until the proposal is voted down by Mexico’s legislative body) and as investors anticipated lower U.S. interest rates when the Federal Reserve meets next week on the back of poor jobs data.

The biggest overnight mover was the Mexican peso which soared more than 2% on Monday, its biggest gain in over a year, as investors bought the currency in a relief rally after fretting for the past week that opening up another trade conflict, while still battling with China, could push the United States and other major economies into recession.

Futures on the S&P 500, Dow Jones Industrial Average and Nasdaq 100 all climbed, as one would expect, but much of the overnight rally fizzled as the real threat to the global economy – the trade war with China – showed no signs of relenting.

All Asian markets advanced on Monday in celebration another trade war front had been averted for now, led by Hong Kong and Japan. Hong Kong’s Hang Seng Index closed 2.3% higher, extending its gains into the third day, while China’s Shanghai Composite Index jumped 0.9%. Japan’s Topix Index gained 1.3% to a three-week high and the Nikkei rose 1.2%, with Nippon View Hotel Co. and Denki Kogyo Co. contributing most of the index’s gains. India’s S&P BSE Sensex Index rose 0.2%.

Investors also focused on Chinese trade data reported overnight, which showed imports in May tumbled 8.5% from a year earlier, a much worse than expected outcome that signaled weak domestic consumption. Exports, however, unexpectedly rose 1.1% last month, though this was once again due to front-loading of shipments by firms to avoid higher U.S. tariffs. The frontloading may continue in June, according to Goldman, due to the concerns of possible tariff for the $300bn of China exports to US (late June or early July at the earliest if implemented), which could support exports momentum in the near term. However, with the fading of this effect, exports momentum may turn notably weaker, especially amid moderate global economic growth, which would call for easier domestic policy to maintain growth stability.

Further commenting on the report, Goldman said that growth of imports for major commodities went down broadly. In value terms, crude oil imports slowed to +5.5% yoy in May (vs. +15.5% yoy in April); steel products imports continued to decline by 22.5% yoy in May (vs. -12.7% yoy in April); iron ore imports increased +24.0% yoy in May (vs. +23.1% yoy in April). In volume terms, crude oil imports decelerated to +3.0% yoy in May (vs. +10.8% yoy in April); steel products imports resumed the contraction by 13.1% yoy in May (vs. -3.8% yoy in April); iron ore imports decreased by 11.0% yoy in May (vs. -2.6% yoy in April), all indicating an economy that has hidden a sudden and profound air pocket.

China’s trade also happens to be the core issue depressing global sentiment today: “Mexico is not China and investors will want to see some clear signs of improvement in U.S.-China relations before increasing exposure to risk assets. Before then the market is left focusing on poor Chinese import figures for May…..as speculation builds over whether the PBOC [the People’s Bank of China] allows yuan to trade through 7 per dollar,” said Chris Turner head of FX strategy at ING Bank.

Over the weekend, we learned that China will implement export controls on sensitive sectors to prevent and resolve national security risks, while there were also reports that Chinese authorities reportedly warned several tech companies not to reduce exposure to China more than what was necessary due to trade restrictions or there would be consequences.

European shares followed Asian stocks higher on Monday on the “No Mexican Tariffs” relief rally, and as investors anticipated lower U.S. interest rates when the Federal Reserve meets next week on the back of poor jobs data. The European auto sector was boosted by signs that Fiat Chrysler Automobiles NV and Renault SA were looking for ways to revive their collapsed merger plan and secure the approval of Nissan Motor Co. Fiat Chrysler jumped 3%, while Renault’s shares were up 1%. In London, Thomas Cook’s shares rose 20% after a report that Hong Kong-listed Fosun Tourism was in talks to buy its tour operating business as the British group faces breakup after issuing three profit warnings in the past year.

And speaking of the UK, the country was the center, or rather centre, of an “economic shock” today as a twofer of dismal economic data hit: U.K. Manufacturing output tumbled -3.9%, far below the -1.0% expected, the biggest drop in almost 17 years in April, or since June 2002, as the boost from Brexit stockpiling evaporated and car producers went ahead with planned shutdowns.

At the same time, GDP data “was a bit of a shocker even factoring in domestic politics,” according to Neil Jones, head of hedge-fund currency sales at Mizuho. The pound slumped as much as 0.4% to $1.2685 as GDP comes in at -0.4% m/m versus estimated -0.1%.

“The GDP estimate was downbeat anyway and we came in even lower”: said Jones, noting that the Pound was likely to slide further as “weekend politics does not look encouraging, this morning data is very downbeat and we’re in a market with only a small short at best”

In the United States, expectations the Fed will cut rates boosted stocks on Friday, with the buying continuing on Monday, after a weak jobs report from the U.S. Labor Department. Fed funds rate futures prices, down on Monday after the Mexico deal, are still pricing in more than two 25-basis point rate cuts by the end of this year, with one almost fully priced in by July. The Federal Reserve’s next policy meeting is set for next week, on June 18-19.

Still, not everyone was rushing to buy stocks just inches away from all time highs: “We remain a bit skeptical about the rally since last week, which is again due to expectations for easier monetary policy and easing trade tensions,” said Goldman strategist Christian Mueller-Glissmann. “Equity valuations remain high and global growth is still weak, which suggests draw-down risk remains elevated. As a result, we are reluctant to buy the dip.”

In rates, European government bond yields remained close to all-time lows. Core bond yields in the bloc were still at all-time lows, despite the two basis point move higher in the German bund in early trade to -0.24%, as expectations of easier monetary policy fuel bond buying. US Treasurys were near session highs, rising to 2.1414% after dipping below 2.06% after Friday’s payrolls report.

In FX, the dollar gained versus all G10 peers as Treasuries dropped; antipodeans came under pressure amid a drop in China’s imports, while the yen also felt the heat from the possibility of further BOJ monetary stimulus. The euro briefly fell below $1.13, sliding 0.3%, as leveraged names unwound short-term dollar shorts, even if near a 2-1/2-month high of $1.1347 touched on Friday. Meanwhile in China, the onshore yuan fell to its weakest level since November as trading resumed after a holiday, following comments from China’s central bank governor in which he hinted there was no line in the sand for the currency. Monday’s decline followed the offshore yuan’s tumble to its weakest level since November on Friday, as People’s Bank of China Governor Yi Gang signaled that he was not wedded to defending the nation’s currency at a particular level. Financial markets in China and Hong Kong were closed Friday

In commodities, oil prices rose on Monday after Saudi Arabia said producer club OPEC and Russia should restrict supplies to current levels, with front-month Brent crude futures at $63.61, 0.5%, above Friday’s close. Gold slipped almost 1%, having hit a 14-month high of $1,348.1 per ounce on Friday, near a major resistance around $1,350.

Market Snapshot

  • S&P 500 futures up 0.3% to 2,883.50
  • STOXX Europe 600 up 0.2% to 378.26
  • MXAP up 0.9% to 155.69
  • MXAPJ up 1% to 508.27
  • Nikkei up 1.2% to 21,134.42
  • Topix up 1.3% to 1,552.94
  • Hang Seng Index up 2.3% to 27,578.64
  • Shanghai Composite up 0.9% to 2,852.13
  • Sensex up 0.06% to 39,640.72
  • Australia S&P/ASX 200 up 1% to 6,443.89
  • Kospi up 1.3% to 2,099.49
  • German 10Y yield rose 2.3 bps to -0.234%
  • Brent Futures up 0.2% to $63.39/bbl
  • Italian 10Y yield fell 12.7 bps to 1.991%
  • Spanish 10Y yield rose 4.2 bps to 0.595%
  • Brent futures down 0.2% to $63.19/bbl
  • Gold spot down 0.9% to $1,328.61
  • U.S. Dollar Index up 0.3% to 96.87

Top Headline News from Bloomberg

  • President Trump pushed Mexico — and his own party — to the brink when he threatened massive new tariffs over illegal immigration. And he now has a cross-border deal to show for it
  • China’s export growth unexpectedly rebounded in May and imports dropped, as the trade standoff with the U.S. intensifies and both countries show no signs of deescalating tensions
  • Bank of Japan can deliver more big monetary stimulus if necessary, but needs to take care with its side effects on the financial system, Governor Haruhiko Kuroda said
  • U.K. manufacturing output fell the most in almost 17 years in April as the boost from Brexit stockpiling evaporated and car producers went ahead with planned shutdowns. The 3.9% decline, the most since June 2002, saw the economy as a whole shrink for a second straight month. Vehicle production plunged by a quarter
  • Hong Kong’s leader pledged to press ahead with Beijing- backed legislation easing extraditions to China despite one of the city’s largest protests since the former British colony’s return more than two decades ago
  • Fears are mounting at the European Central Bank that investors are losing faith in the inflation outlook, in a self-reinforcing spiral that could force the institution to dig deeper into its stimulus toolkit. Staff at the euro area’s national central banks are worried that inflation expectations are becoming “deanchored,” according to officials familiar with the matter
  • The Bank of Japan can deliver more big monetary stimulus if necessary, but needs to take care with its side effects on the financial system, Governor Haruhiko Kuroda said
  • Boris Johnson, the front- runner to succeed Theresa May as U.K. prime minister, promised to take Britain out of the EU in October with or without a deal as he hardened his rhetoric on Brexit and unveiled a tax-cut plan as the other leading candidates prepared to start their campaigns on Monday
  • U.S. Treasury Secretary Steven Mnuchin said he had a “constructive” talk on trade with PBOC Governor Yi Gang. Mnuchin said “if they want to come back to the table and have a real agreement we will negotiate”
  • China extended its gold- buying spree as the trade war with the U.S. damps growth expectations and boosts demand for a portfolio diversifier
  • Hong Kong’s leader pledged to press ahead with Beijing-backed legislation easing extraditions to China despite one of Hong Kong’s largest protests since the former British colony’s return more than two decades ago

Asian equity markets began the week higher with sentiment underpinned after US and Mexico reached an agreement to avert tariffs which were set to kick in today, while the region also took impetus from the last Friday’s gains on Wall St. where disappointing Non-Farm Payrolls data spurred Fed rate cut hopes. Nikkei 225 (+1.2%) was lifted by favourable currency flows and following an upward revision to Q1 GDP, with automakers also underpinned by the tariff-related relief as well as news Fiat and Renault Chairmen discussed reviving their merger plan. Elsewhere, Australia remains closed for holiday, while Hang Seng (+2.2%) and Shanghai Comp. (+0.9%) were positive but with initial weakness seen in the mainland following a net liquidity drain by the PBoC and mixed Chinese Trade data in which Trade Balance and Exports topped estimates although a contraction in Imports highlighted subdued domestic demand. Finally, 10yr JGBs were initially pressured on safe-haven outflows but then staged an aggressive comeback as the declining yield narrative persisted and with the BoJ also in the market for JPY 775bln of JGBs.

Top Asian News

  • Chinese Imports Drop as Growing Tensions With U.S. Cloud Trade
  • Kuroda Says BOJ Has Enough Ammunition, Wary of Side Effects
  • China Trust Shares Plunge as $1.7 Billion Products Face Default
  • Hong Kong Stocks Lead Catch-Up Rally Amid Policy Easing Signals

European equities are marginally higher [Stoxx 600 +0.2%] following on from a positive Asia-Pac handover, with sentiment underpinned by the US-Mexico trade agreement, albeit with the positive momentum fading as Washington’s trade spat with China remains a grey cloud over the market. UK’s FTSE 100 (+0.5%) marginally outperforms its peers as exporters in the index benefit from a weaker domestic currency, whilst German, Swiss, Austrian and Norwegian cash markets are closed due to Whit Monday. Sectors largely reflect a “risk-on” mood as defensive sectors such as Utilities, Healthcare and Consumer Staples lag their peers. In terms of individual movers, BAE Systems (+1.2%) shares are supported in light of a mammoth merger between US listed Raytheon (RTN) and United Technologies (UTX), which some say point to renewed demand in the sector; the merger of equals will result in the new Co. having a annual revenue of around USD 74bln. Elsewhere, Fiat Chrysler (+2.2%) shares spiked higher amid reports of potential renewed talks with Renault (+2.1%), with the former also potentially buoyed by the US-Mexico trade agreement as it is one of 8 automakers with plants in the South American country. Finally, Thomas Cook (+14.5%) shares were bolstered by acquisition chatter as Forsun (18% shareholder) is reportedly planning a potential offer for Co’s tour arm which generates sales of GBP 7.4bln.

Top European News

  • Russia U-Turn on Wealth Fund May Cause Dutch Disease, S&P Warns
  • Some ECB Officials Fear Markets Losing Faith in Inflation Goal
  • Ocado Invests in Indoor Farming in Step Beyond Grocery Tech
  • Italy’s Conte Sets Warning to Populists on Talks With Brussels

In FX, the USD has extended its recovery from Friday’s lows, albeit in part due to renewed weakness in rival currencies and despite outperformance in certain EMs on fundamental and technical factors. The DXY just topped out a fraction below 97.000 having declined to sub-96.500 in wake of a weak BLS report that raised already lofty market expectations for Fed easing, with the focus now switching to upcoming CPI data to add more justification for the FOMC to deliver a cut.

  • GBP – Not the biggest G10 loser, but Sterling has been one of the weakest majors in early EU trade on the back of monthly GDP for April showing a faster than forecast contraction in the UK economy as ip, manufacturing and construction output all slumped more than anticipated. The ONS assigned much of the blame to planned shutdowns and Brexit uncertainty that led to a record decline in car production, while transport equipment tanked the most since 1974. Cable duly retreated through 1.2700 in response and Eur/Gbp breached 0.8900 to post 5 month+ peaks.
  • NZD/AUD – The main victims of a slump in Chinese imports, but somewhat perversely it is the Kiwi that is feeling the brunt of the data that exacerbates US-China trade tensions rather than the Aussie and perhaps due to Australia’s national holiday. Nzd/Usd is hovering just above 0.6600 vs Aud/Usd holding around last Friday’s low and several key technical support levels either side of 0.6950, like 10 and 21 DMA convergence circa 0.6955 and a Fib at 0.6945, while the Aud/Nzd cross is hugging the upper end of a 1.0525-00 range.
  • JPY/CHF/EUR – The US-Mexican trade accord has seen the Yen and Franc lose safe-haven appeal and retreat vs the Buck to 108.50+ and 0.9900+ respectively, but Usd/Jpy faces some upside hurdles in the form of 1.1 bn option expiries at the 109.00 strike and then trend-line resistance at 109.15, while Usd/Chf and Eur/Chf (latter pivoting 1.1200) will be conscious that Thursday’s SNB quarterly policy review is looming. Elsewhere, Eur/Usd is testing 1.1300 and bids below the big figure after a brief and minor breach of Fib/30 DMA support at 1.1293 amidst more bleak Italian data that was only partly attributed to calendar distortions due to a national holiday, per ISTAT. Note also, decent expiry interest at 1.1300 in 1.1 bn.
  • CAD – The Loonie remains relatively bid after Canada’s healthy jobs release in contrast to the US and with some extra encouragement via contagion from the aforementioned US-Mexican agreement that bodes well for USMCA prospects. Usd/Cad off lows but still well under 1.3300 in a 1.3278-25 band and near multi-month lows ahead of Canadian housing starts and building permits.
  • EM – As noted above, several regional currencies outpacing the Dollar and none more so than the Peso in relief that Mexico will avoid US tariffs – Usd/Mxn sub-19.2000 and down through 19.1400 at one stage. Meanwhile, the Rand and Lira are also doing well, albeit in corrective moves after hefty losses of late on a steep deceleration in SA GDP/SARB mandate uncertainty, and ongoing US-Turkey strains, as attention turns to the upcoming CBRT policy meeting. Usd/Zar has reversed from 15.0000+ to around 14.8500 and Usd/Try down towards 5.8000, but conversely Usd/Cnh remains close to recent 6.9600+ peaks on the drop in Chinese imports.

Commodities are mixed as the energy complex continues to consolidate following its recent sell-off, with the benchmarks somewhat underpinned by the risk appetite around the market after US President Trump called off tariffs on Mexico which were due to be imposed today. WTI and Brent futures currently hover just above USD 54.00/bbl (ahead of its 200 DMA at 52.60) and USD 63.00/bbl respectively. Turning to OPEC, Saudi’s Energy Minister echoed some comments from the back-end of last week in which he stated that Russian is the only country still undecided on an OPEC+ deal extension, and subsequently, Russia’s Finance Minister noted that Brent prices could potentially fall to USD 40/bbl if the deal is not extended. Elsewhere, amid the possible ramifications of the US-Sino trade war on the global economy, Barclays revised its 2019 oil demand forecast lower by 300K BPD to 1.3mln BPD (in-line with IEA’s 2019 forecast of 1.3mln BPD and marginally higher compared to OPEC’s forecast of around 1.21mln). In terms of precious metals, a firmer risk tone and a stronger Greenback have shaved off some gains in gold (-1.0%) and silver (-1.5%), whilst copper (+0.7%) prices benefit from the risk appetite after Washington struck a deal with Mexico. Finally, iron ore futures are marginally firmer as a firmer Buck caps gains in the base metal, despite China’s iron ore imports rebounding from an 18-month-low last month, against the backdrop of tight supply amidst the recent production disruptions including Vale’s shipment cuts and China’s smog alerts.

US Event Calendar

  • 10am: JOLTS Job Openings, est. 7,496, prior 7,488

DB’s Jim Reid concludes the overnight wrap

I hope you all had a good weekend. I’ve woken up with paint still splattered on me after a Sunday of arts and crafts and also smelling of fairy liquid. My brother bought the kids an industrial sized, battery operated bubble machine and given it’s size it required a big glug of washing up liquid. A very messy afternoon which ended with Maisie in agony and hysterics as fairy liquid ended up being rubbed into her eyes. I was in the doghouse for letting it happen on my watch !!

Markets are blowing small celebratory bubbles this morning as late on Friday the US announced a deal with Mexico to ensure that tariffs don’t get imposed today as planned. However there was some subsequent confusion as Mr Trump tweeted that Mexico has agreed to buy “large” amounts of agricultural products from the US as part of the deal. This didn’t seem to be anywhere in the accord released and sources close to the negotiations suggested on Bloomberg that there weren’t any additional side deals planned. So a bit puzzling but there will be relief that the tariffs have been avoided and perhaps some might believe it shows Trump’s propensity to strike deals after brinkmanship. As such there may be those thinking that a similar thing might happen with the China trade situation. That might eventually be true but it’s not clear this is imminent and as such high uncertainly will continue. As a result of the deal, the Mexican peso is up +2.04% this morning, the highest single day gain since July 2018.

Most other markets in Asia have started the week on a firmer footing taking as a result of the news. The Nikkei (+1.09%), Hang Seng (+2.00%), CSI (+1.43%), Shanghai Comp (+0.98%) and Kospi (+0.86%) are all up. China’s onshore yuan is trading down -0.35% at 6.9338, the weakest level of the year, with all the G-10 currencies also trading softer against the dollar. Elsewhere, futures on the S&P 500 are up +0.23% and the yield on 10y USTs is up +3.5bps while that on 2y USTs is up +4bps bringing the 2s10s spread down to +22.7bps. Gold prices are -0.85% this morning while WTI crude prices are up +0.56%.

This morning in China, we’ve seen trade data for May with the balance standing at $41.65bn (vs. $22.30bn expected) as exports jumped more than expected (at +1.1% yoy vs. -3.9% yoy) while imports saw a sharp slide (at -8.5% yoy vs. -3.5% yoy expected). In terms of trade with the US, exports declined -4.2% yoy (vs. -13.1% yoy last month) while the decline in imports was sharper at -26.8% yoy (vs. -25.8% yoy last month). Meanwhile, China’s May foreign reserves surprised on the upside at $3.101tn (vs. $3.090tn expected and $3.095tn last month). Our China strategists suggest this could either be due to lumpy coupon payments on their holdings or early signs that the Chinese are diversifying away from dollar holdings. You only mark to market when you sell so reserves could go up on this sort of event. We’ll wait for the latest Treasury holdings data to see.In terms of other data releases, Japan’s final Q1 GDP came in one tenth above the preliminary read at +0.6% qoq.

Moving on to this week, China data will take centre stage. After the trade data released earlier we have May CPI and PPI data tomorrow and then the full May activity indicators on Friday. At some stage during the week we should also get the May credit data, which is expected to show an increase in aggregate financing versus the month prior.

As we go into Fed blackout period, in the US the main highlights are May PPI tomorrow, CPI on Wednesday, the May retail sales report on Friday alongside the industrial production print and the preliminary University of Michigan consumer sentiment survey for June. In Europe we’re due to get final May CPI revisions over the week including data for Spain on Wednesday, Germany on Thursday and France and Italy on Friday. The April industrial production print for the Euro Area is also due on Thursday. In the UK we get the April GDP and industrial production data today and April/May employment data on Tuesday.

As for last week, global equity markets performed well, with the S&P 500 snapping a streak of four consecutive weekly losses to advance +4.41% (+1.06% on Friday), its best week since November. Other indexes performed similarly well, with the NASDAQ and DOW gaining +3.88% and +4.71% (1.66% and +1.02% Friday) respectively. There were two key drivers for the strength: increased confidence that the Fed will ease policy this year and firmer expectations that tariffs on Mexico would be avoided before today’s deadline. This was clearly what happened late on Friday night.

May’s nonfarm payrolls report showed that the US economy added only 75,000 jobs last month, minus another -75,000 in net revisions to the prior months. Average hourly earnings were also a touch softer than expected at +0.2% mom and 3.1% yoy. Futures markets moved to completely price in a Fed rate cut at the July meeting, plus an additional 62 basis points of cuts over the subsequent year. Bond yields fell sharply, with 10-year yields down -4.4bps on the week (-3.6bps Friday), but yet again the bigger moves were in the front-end, where 2-year yields fell -7.5bps (-3.1bps Friday).

European equities lagged the US, as the ECB’s meeting proved disappointing last Thursday. President Draghi barely changed the economic outlook or the balance of risks and was reluctant to signal further easing. The market reaction was negative, with equities falling, especially bank shares, the euro strengthening, and bond yields falling. Ultimately, the STOXXX 600 ended +2.28% (+0.93% Friday), though an index of bank stocks ended -0.29% on the week (-0.10% Friday). Bond yields fell across the continent, with bunds down -5.5ps (-1.8bps Friday) to -0.257% and a fresh all-time low. OATs also reached a record low of 0.085% after falling -12.5bps (-3.0 Friday), while BTPs outperformed, falling -31.2ps (-13.0bps Friday) even as the EU stepped up their fight over Italy’s debt. The mix of central bank easing expectations and soft data provided the impetus for the rally, but Italy was also boosted by positive rhetoric from the leaders of its two governing parties, Di Maio of the Five Star Movement and Salvini of the Northern League. They issued a joint statement on Thursday night that said “the government must move forward” on implementing “a constructive dialog with Europe,” helping to alleviate some of the concerns around a potential confrontation with Brussels.

3. ASIAN AFFAIRS

I)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED DOWN UP 24.23 POINTS OR .86%  //Hang Sang CLOSED UP 613.36 POINTS OR 2.27%   /The Nikkei closed UP 249.71 POINTS OR 1.21%//Australia’s all ordinaires CLOSED UP .91%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9320 /Oil DOWN TO 52.49 dollars per barrel for WTI and 60.38 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.9320 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9535 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

China

The Chinese are very clever people.  They are dodging USA tariffs with fake “made in Viet Nam” tags

(courtesy zerohedge)

4/EUROPEAN AFFAIRS

 

i) ITALY/

An excellent commentary from tom Luongo as he highlights the Triumvirate of Conte, Tria and Mattarella who are backing Brussels trying to keep Italy in the EMU

(courtesy Tom Luongo)

 

Salvini Faces Italian Troika Protecting The EU

Authored by Tom Luongo,

Lega leader Matteo Salvini has a problem and it isn’t his coalition partner. Though winning the European Parliamentary elections last month the Euroskeptic government between Lega and Five Star Movement is in a war with a troika of technocrats within his own government.

And that Troika is as trapped as the European Central Bank they are trying to protect. Bear with me, this will take a bit to explain.

Prime Minister Giuseppe Conti and Economy Minister Giovanni Tria are in open revolt against the coalition leaders over the upcoming budget fight with the EU.

Reuters is reporting this morning that these two are working together to undermine the internal reforms Salvini is proposing to spur economic growth from the ground up by instituting a flat tax and spending a whopping $3 billion more than Brussels wants them to on rebuilding crumbling Italian infrastructure.

Prime Minister Giuseppe Conte and Economy Minister Giovanni Tria, both technocrat appointees, have held private conversations with President Sergio Mattarella in recent days on ways of shielding Italy from a gathering political and financial storm, according to two Italian officials with knowledge of the matter.

Conte and Tria are acting with Mattarella, who has a role in ensuring political stability, to effectively curb the behavior of their own government — a populist coalition whose party leaders are railing against EU budget rules

Conte threatened Salvini less than a day after the elections with his resignation if Salvini’s plans did not jibe with his.

Tria consistently and publicly undermines the populist government with statements conciliatory to Brussels’ budget rules, usually less than 24 hours after one of them speaks.

Set the Wayback Machine to coalition talks this time last year. President Mattarella rejected the initial recommended government by Lega and M5S, because their pick Paolo Savona was too anti-EU and hostile to Germany. He played hardball to the end and forced the pick of Prime Minister, in this case Conte.

All three of these guys are as Italian Swamp as it gets. And what’s worse, Mattarella is in power until 2022, only four years into a seven-year term.

Italy has left with this unworkable structure with Salvini and M5S Leader Luigi Di Maio sharing the useless title Deputy Prime Minister. And their power effectively neutered by Italy’s own domestic Troika.

The President is supposed to be a ceremonial title without much power. But, given this structure, and Mattarella’s alliance with Conte and Tria, he has the power to bring down the Italian government and force new elections.

This would send the Italian markets into complete shock and the press would swoop in to blame Salvini for the crisis, even though it was wholly manufactured by political vultures in Rome working for Brussels.

As I went through last week, the polls right now could possibly leave an unworkable situation. But, if Mattarella takes down the government it wouldn’t be Salvini driving the wedge between the League and M5S and they could, likely, form another coalition.

Except that Mattarella would then try to reject whatever Salvini put on the table like he did last year.

The key now is for Salvini and Di Maio to form a united front against Conte, Tria and Mattarella and hold fast to their populist agenda while making the case that Brussels is still calling all the shots in Rome.

Which they are.

And M5S has to embrace Lega’s vision for Italy to stave off a resurgence of the Democrats and muddy the waters further.

What’s going on now is an elaborate game of chicken by the old guard of Italian politics trying to stem the tide of reform and protect entrenched interests. Sound familiar? See Exhibit A: The U.S. under Trump and Exhibit B: Brexit in the U.K.

But the reality is that the ECB has more to lose than Italy does if Italian debt yields spike. It will set off a chain reaction throughout Europe which will hurt Germany and France far more than Italy.

This is why the ECB threatens fines and fire and brimstone one day and lets yields spike but yields have been in a consistent downtrend since the EU acceded to the Italian government on last year’s budget.

Tria, Conte and Mattarella are speaking for the ECB trying to maintain the veneer of stability. The reaction to the horrific U.S. jobs report across the markets is a perfect example of a panic rally in everything as dollars were sold and everything else bought in anticipation the Fed cutting rates.

It was a weird mix of safe-haven international flows and a domestic sigh of relief.

Bond yields across Europe were falling sharply overnight, most notably Italy’s by nearly 20 basis points hoping for increased dollar liquidity while maintaining growth. But the jobs report shocked everyone out of their pajamas.

Those trades unwound fast as the euro spiked alongside gold (still making its grievance with the Central Banks heard), U.S. stocks (Up 1%) and U.S. bonds (down 5 basis points).

This clearly tells us investors across Europe are now getting very antsy about what’s happening on the continent. And that if the U.S. economy is slowing down then being parked in U.S. assets is the right play.

This is a defense against the possibility of Jerome Powell making good on his threat of zero-bound interest rates no longer being considered “extraordinary” during times of distress.

The Fed is telling us rate cuts are coming. The bond markets are demanding it. The political stresses and increasingly desperate moves by entrenched powers fueling it.

And we may have seen the end of the artificial bull market in Italian debt, which should be trading at much higher yields.

This report from Reuters was meant to calm the markets. To float the narrative that the Italian Troika was on the job to maintain sanity and the ECB did its part. Until reality hit them in the face. Europe is a basket case.

Salvini has all the leverage if he’s smart enough to use it until the Italian Troika folds.

 

END
The ECB sends another trial balloon through Reuters stating that it is willing to cut rates.  It does not like to see its Euro exchange rate high as it is stifling growth in Germany et al. The problem of course, is that if the Euro is lowered so does the deposit rate which is already at record lows.
(courtesy zerohedge)

ECB Floats Rate Cut Trial Balloon, Is “Open” To Cutting Rates

Last week’s non-committal ECB announcement caught markets by surprise, with the Euro jumping despite Mario Draghi’s best attempts to signal further easing even as he hinted at growing “downside risks”, prompting speculation that the ECB may have lost the last shreds of its credibility and leading Rabobank to publish a piece titled “Whatever It Takes” > “Whatever“.”

Not used to being spurred by markets, Mario Draghi refused to take such aggression against his legacy quietly – especially as the former Goldman partner is set to retire shortly – and on Sunday, the European Central Bank used its traditional trial balloon conduit, Reuters, which reported that ECB policymakers “are open to cutting the ECB’s policy rate again” if economic growth weakens in the rest of the year and a strong euro hurts a bloc already bearing the brunt of a global trade war, clearly hoping that this jawboning would be sufficient to slam the euro (it wasn’t with the EURUSD basically unchanged from its Friday close).

As a reminder, last Thursday the ECB said that its interest rates would stay “at their present levels” until mid-2020 but President Mario Draghi added rate setters had started a discussion about a possible cut or fresh bond purchases to stimulate inflation.

This conflicting message failed to convince some investors, who saw it as too tenuous a commitment to more stimulus, sending the euro rallying to a nearly 3 month high of $1.1347 against the U.S. dollar.

So in an attempt to convince the skeptics, Reuters cited its traditionally anonymous “two sources” familiar with the ECB’s policy discussions, who said a rate cut was firmly in play if the bloc’s economy was to stagnate again after expanding by 0.4% in the first quarter of the year.

“If inflation and growth slow, then a rate cut is warranted,” said one of the sources, who requested anonymity because the ECB’s deliberations are confidential.

The problem is that no matter what Draghi says, or “floats”, the market is concerned that the ECB is approaching the end of its credible ammo: with the ECB’s deposit rate already negative 40 bps and Germany’s yield hitting all time low. In this context, countering the euro’s strength, rather than lowering already rock-bottom borrowing costs, would be the main reason for a further cut to that deposit rate, one of the sources said.

But how can the ECB pursue a “surgical” devaluation of the euro (amusingly nobody ever accused the central bank of manipulating its currency when in reality that is all it does) without also slamming government bond yields which have made Europe’s entire banking system into a NIRP zombie trading near record low levels?

I’ll give you five reasons for a rate cut,” the source said before repeating “exchange rate” five times.

While the ECB doesn’t formally admit it targets an exchange rate – just like every other central bank –Draghi noted the euro’s appreciation in his news conference on Thursday and has long highlighted the currency as a crucial determinant of financing conditions.

So what FX level could trigger the ECB to move?

The Reuters source said a euro at $1.15 would still be tolerable for some but $1.20 would be a critical level to watch. And now that the bogey has been set, the market will certainly test the ECB’s resolve.

The bigger problem facing Europe is… the US. The common currency has risen by 2% against the dollar in just over a week as the Federal Reserve itself signaled its willingness to cut its interest rates if needed. This, in turn, was seen by some analysts such as those from Goldman, as a sign the U.S. central bank was bowing to pressure from the White House to keep the dollar weak and strengthen the administration’s hand in its trade negotiations. Furthermore, Italy’s central bank governor Ignazio Visco also blamed the euro’s surge after the ECB’s latest decision on “interactions with U.S. interest rates”.

That said, even Reuters conceded that the argument for more quantitative easing from the ECB was less clear to some policymakers, according to the “sources.” One of them said more QE could help soothe stock markets if these were spooked by an escalation in the trade war, although there would be a risk for the ECB in appearing to kowtow to equity investors (not like that has ever stopped central banks, which in recent years have largely admitted their only mandate is preserving a levitating stock market).

Ironically, the other said the main benefit of QE was compressing the difference between short- and long-term borrowing costs, making access to finance easier for companies and households, but this so-called term premium was already low. What he meant is that should the ECB cut rates even more, European banks – already on the edge – will start toppling over like dominoes as the bank business model no longer works under a NIRP regime.

As such it will be poetic irony that the same central banks that launched unprecedented “unorthodox” policies to preserve the world’s banking giants a decade ago, will be the culprits behind the wholesale devastation of these same banks. Luckily for Mario Draghi, he will be far away, merrily enjoying his retirement on the shores of one of central Europe’s scenic (if not too secluded) lakes. His successor however, will not be so lucky.

end

On the same subject as above:  European markets are not reacting to Draghi’s hinting of lower rates

(a must read/John Rubino)

Something Huge Just Happened In Europe

BY JOHN RUBINO ? JUNE 9, 2019

Critics of modern monetary policy have been predicting that the day would come when a central bank would cut interest rates (or at least promise to), and the financial markets, instead of throwing a party, would fall. Then it would be game over for easy money.

This has yet to happen in the US. Both when the Fed stopped tightening in January and when it promised to resume easing more recently, stock prices soared, which implies that the addict is still responsive to new injections.

But in Europe, where monetary policy is further down the road to universally-negative interest rates, the story is different. On Thursday, European Central Bank chair Mario Draghi went back to his tried-and-true “whatever it takes” script, promising to restart QE and cut interest rates even further if the weak EU economy doesn’t pick up steam.

The markets, instead of reacting with their typical euphoria, seemed to recoil. Most EU member bond yields went up rather than down, bank stocks fell and the euro — which would normally be expected to fall on the prospect of easier money — rose.

This is both huge and, like I said, expected. Once a central bank has pushed interest rates below zero and bought up most of the available high-grade bonds, lower interest rates and more bond purchases ought to lose some of their punch. And it appears that they have.

Now comes the panic, as stock and bond markets start to roll over in the face of ECB impotence, forcing Draghi and his soon-to-be-announced successor into even more extreme policies like buying up junk bonds (including Italian sovereign debt) and equities. The question then becomes, will upping the dose give the addict a few more months/years of life, or kill him immediately?

That, like the rest of this, is unknowable because it’s uncharted territory. Negative interest rates and massive QE were already experimental. The next, even more extreme policies will be more so, which means the point where they stop helping and start hurting won’t be clear until after the fact.

But Europe is proof that that day is coming.

-END-

Mish Shedlock explains to us the BREXIT situation and it is now up to Boris Johnson.  It is his to lose

(courtesy Mish Shedlock/Mishtalk)

Tory Choice: Political Extinction Or Halloween Brexit

Authored by Mike Shedlock via MishTalk,

The Brexit party was supposed to win the Peterborough by-election. Instead, Labour won. But that’s the wrong takeaway.

There was a special election to replace an MP in the Peterborough district.

Nigel Farage’s Brexit party was supposed to win the seat.

It didn’t, and Jeremy Corbyn, the Labour Party leader, was mistakenly crowing.

Understanding the Message

“Peterborough has shown clear support for Labour’s programme to end austerity and invest in services and communities, rejecting a decade of Tory cuts and their disastrous handling of Brexit. In this key seat, the Conservatives have been pushed to the margins.”

What a hoot.

Labour’s percentage fell 16 percentage points from the last election.

Brexit has split both Labour and the Tories.

Tweet of the Day

The Brexit Party

@brexitparty_uk

A remarkable result for our 8 week old party. If we can come so close in our 201st target seat, no seat is safe. We’re very proud of @MikeGreeneTBP & our supporters who worked so hard. Thanks to the people of Peterborough who voted for us – we promise you that we’re here to stay!

“A remarkable result for our 8 week old party. If we can come so close in our 201st target seat, no seat is safe.”

That’s the correct message.

Message from Peterborough

Eurointelligence get it correct.

Labour won the Peterborough by-election by the thinest of margins – a few hundred votes – followed closely by the Brexit Party. The Tories were in a distant third place. The result will serve as a useful reminder for the Tories of the Brexit party’s destructive potential. Labour won the seat despite a loss of 16pp compared to the previous election. Farage managed to split the conservative wing into two, thus handing Labour what would otherwise have been an easy win for the Tories given the circumstances in which the by-election took place. Forget all the complacent talk about Farage never having won a seat for himself at a general election. This totally misses the point of what is happening in British politics right now. Even if the Brexit Party were only able to secure a small number of seats, it would still have the potential to wipe out the Tories. First-past-the-post systems leverage small political swings into huge re-distributions of seats.

The by-election will serve as yet another reminder to the Tories that they are facing a straight trade-off between political extinction and a Halloween Brexit. The UK’s political class spent the long hours ahead of the Peterborough results discussing the mechanics of a no-deal Brexit, concluding that it is not possible or realistic for a PM to prorogue parliament – the theoretical ability to suspend the House of Commons in late October. We think the main effect of this debate has been to isolate Dominic Raab, the most extreme of the pro-Brexit candidates. Moderate Tories now support Boris Johnson – just savour this statement for a moment. The contest is his to lose.

There are two scenarios that could lead to new elections. The first is a no-confidence vote that Labour said it will deliver when the new government is installed. The second would be a decision by Johnson to call elections – subject to the usual parliamentary procedures – to gain a majority for his own Brexit strategy.

For the moment Johnson has positioned himself in the right spot: an absolute commitment to the Oct 31 leaving date, together with a willingness to compromise on an agreement. There exists no viable strategy for the Tories away from this finely calibrated line.

Eurointelligence Nails It

I am increasingly at odds with Eurointelligence commentary. But this is not one of those times.

Explaining Theresa May’s Deal

Pater Tenebrarum at the Acting Man Blog has a fitting set of political cartoons. Check it out.

Also check out this video. It’s hilarious.

Matter of Survival

As a matter of survival, Tories need to deliver Brexit by November.

A lengthy delay or a customs union without a short, firm, time limit does not deliver Brexit.

Can Johnson deliver?

I ask that question in Stop Boris Madness In Five Pictures.

My conclusion: “Those backing Remain would do best to support BoJo and hope he makes a big mistake.”

5.RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

IRAN/USA

Iran blasts Pompeo after the USA initiated more sanctions against Iranian petrochemical companies.  Iran’s economy is now in complete shambles

(courtesy zerohedge)

Iran Blasts “Deceitful” Pompeo, Calls New Sanctions An “Act Of Economic Terrorism”

Pompeo’s words were “deceitful, untrue and merely in service of appealing to the public opinion,” blasted Abbas Mousavi, a senior Iranian diplomat, after Washington imposed sanctions against Iranian petrochemical companies despite an earlier promise of negotiations without preconditions.

On Friday, the US Treasury announced it has imposed a new wave of sanctions against Iranian energy businesses. The move is meant to stifle the revenues of the elite Islamic Revolutionary Guard Corps (IRGC), which Washington declared a terrorist organization earlier in April.

This infuriated Iran’s foreign minister, who, as RT reports, exclaimed that this proves that US Secretary of State Mike Pompeo made an empty promise to Tehran less than a week ago, when he said he was ready to start “a conversation with no preconditions.”

“Only one week was needed for the US president’s claim that he was ready to negotiate with Iran to be proven hollow.”

America’s maximum pressure policy is a failed policy tried numerous times before by the country’s previous presidents. This is a wrong path and the US government can be sure that it will not achieve any of the goals set for this policy,”

He called the sanctions an act of “economic terrorism” and said Tehran will not yield to Washington’s pressure.

“All countries have a responsibility to react against the flagrant violations of the fundamental principles of international law and not to allow the international community’s achievements in multilateralism to be further ruined by the bullying and unilateral actions of the American governing body,” Mousavi said.

Of course, we wonder how many of these words were prompted by John Kerry’s guiding hand.

end

This is bothersome:  The top Iranian diplomat states that the USA cannot expect to stay safe.  He also says that of Israel.
(courtesy zerohedge)

Top Iranian Diplomat: US Cannot ‘Expect To Stay Safe’

Iranian Foreign Minister Mohammad Javad Zarif made a series of threats over ongoing tensions in the Persian Gulf amid a visit by Germany’s top diplomat who sought to diffuse the situation.

On Monday, Zarif threatened that the United States”cannot expect to stay safe” after initiating an economic war against the Islamic republic in the wake of President Trump’s decision more than a year ago to withdraw from the 2015 nuclear deal, along with tough sanctions targeting Iran’s oil sector.

“Mr. Trump himself has announced that the U.S. has launched an economic war against Iran,” said Zarif according to the Associated Press, adding “The only solution for reducing tensions in this region is stopping that economic war.”

Whoever starts a war with us will not be the one who finishes it,” he added.

For his part, German Foreign Minister Heiko Maas insisted his country and other European nations want to find a way to salvage the nuclear deal, which saw Iran limit its enrichment of uranium in exchange for the lifting of economic sanctions. But he acknowledged there were limits.

We won’t be able to do miracles, but we are trying as best as we can to do prevent its failure,” Maas said.

However, Europe has yet to be able to offer Iran a way to get around the newly imposed U.S. sanctions. Meanwhile, a July 7 deadline — imposed by Iran — looms for Europe to find a way to save the unraveling deal. –Associated Press

Anger over Israel

At one point during the meeting, Germany’s Heiko Maas angered the Iranian diplomat while discussing Israel.

“Israel’s right to exist is part of Germany’s founding principle and is completely non-negotiable,” said Maas, adding “It is a result of our history and it’s irrevocable and doesn’t just change because I am currently in Tehran.”

According to the report, Zarif grew visibly angry, then offered a list of problems throughout the Middle East, ranging from al-Qaeda to the bombing of Yemeni civilians which he blames on the US and its allies – primarily Saudi Arabia.

“If one seeks to talk about instability in this region, those are the other parties who should be held responsible,” said Zarif.

Zarif’s sharp tone likely comes from Iran’s growing frustration with Europe, as well as the ever-tightening American sanctions targeting the country. Iran’s national currency, the rial, is currently trading at nearly 130,000 to $1. It had been 32,000 to the dollar at the time of the 2015 deal. That has wiped away people’s earnings, as well as driven up prices on nearly every good in the country.

European nations had pledged to create a mechanism called INSTEX, which would allow Iran to continue to trade for humanitarian goods despite American sanctions. However, that program has yet to really take off, something Iran’s foreign ministry spokesman noted before Zarif and Maas spoke to reporters.

“We haven’t put much hope in INSTEX,” spokesman Abbas Mousavi said, according to Iranian state television. “If INSTEX was going to help us, it would have done so already.” –Associated Press

In withdrawing from the nuclear deal, Trump noted that it hadn’t limited Iran’s ballistic missile program, or dealt with what US officials describe as Tehran’s malign influence throughout the wider region.

According to the Tasnim news agency, Iran’s deputy head of their nuclear program, Ali Asghar Zarean, said Tehran had increased the number of centrifuges from 720 in 2015 before the 2015 nuclear deal, to 1044 now at their Fordo underground facility.

The head of the Atomic Energy Organization of Iran, Ali Akbar Salehi, said last month that Iran had begun installing a chain of 20 IR-6 centrifuges at its underground Natanz enrichment facility. Iranian officials say the IR-6 can enrich 10 times faster than an IR-1.

In late May, the U.N. nuclear watchdog said that “up to 33” more advanced IR-6 centrifuges have been installed and that “technical discussions in relation to the IR-6 centrifuges are ongoing.”

Under terms of the nuclear deal, Iran is allowed to test no more than 30 of the IR-6s once the deal has been in place for 8 1/2 years. The deal is murky about limits before that point, which will arrive in 2023. –Associated Press

On Wednesday, Japanese Prime Minister Shinzo Abe will arrive in Tehran as an interlocutor for Trump. Japan was previously a buyer of Iranian oil until the US sanctions took effect.

6.GLOBAL ISSUES

Mexico/USA

Peso rises after the USA Mexico migration  deal

(courtesy zerohedge)

 

Peso Spikes In Early Asia Trading After US-Mexico Migration Deal

The Mexican peso is up around 1.5% in early Asia trading, reacting to the after-hours news of a ‘deal’ between US and Mexico over the migration crisis.

For now, the post-Trump drop has not been entirely erased (while stocks have soared well above that dip)…

Perhaps, as Goldman warned, it is because the tariffs issues “not dead, just dormant” and could be resumed if Mexico doesn’t enforce the agreement, situation at the border changes or amid upcoming U.S. elections.

Goldman Sachs chief Latin America economist Alberto Ramos notes in a report this weekend that avoiding tariffs and an eventual escalation of frictions with the U.S. is a “net positive outcome for markets, but not a free lunch or risk-free proposition for Mexico,”as Mexico’s budget is “increasingly tight.”

Ramos adds that concessions made by the Mexican authorities “could also be politically costly for President Lopez Obrador, whose political support base is not particularly engaged on Central America asylum and migration to the U.S. issues.”

end

Trump this morning states that another very important part of the Mexico deal is now finished.  The New York Times and the Washington post thinks that the deal is a phony

(courtesy zerohedge)

Trump Says “Another Very Important Part” Of Mexico Deal Is Now Finished

Markets are back in rally mode now that President Trump has managed to strike a deal with Mexico (which the New York Times and other members of the liberal press have dismissed as a fraud).

But without getting into to many of the details, Trump revealed via Twitter on Monday that the two sides had “signed and documented another very important part of the immigration and security deal with Mexico.” The details of the plan will be revealed in the “not too distant future”.

Donald J. Trump

@realDonaldTrump

Now with our new deal, Mexico is doing more for the USA on Illegal Immigration than the Democrats. In fact, the Democrats are doing NOTHING, they want Open Borders,
which means Illegal Immigration, Drugs and Crime.

13.2K people are talking about this

Donald J. Trump

@realDonaldTrump

We have fully signed and documented another very important part of the Immigration and Security deal with Mexico, one that the U.S. has been asking about getting for many years. It will be revealed in the not too distant future and will need a vote by Mexico’s Legislative body!..

13.3K people are talking about this

Donald J. Trump

@realDonaldTrump

….We do not anticipate a problem with the vote but, if for any reason the approval is not forthcoming, Tariffs will be reinstated!

According to a team of analysts at Goldman Sachs, while the new agreement is better than tariffs, it is not a free lunch for Mexico, which is perhaps why the peso has not held on to the pre-Trump-tariff warning levels…

The agreement will have “fiscal implications, and may over time also have economic, social, security and political implications for the AMLO administration, including…”

  • Mexico will have to allocate extra budgetary resources for border control and overall migration law and order enforcement.
  • Mexico committed to grant some work permits and to house, feed, and provide healthcare and education to an unspecified number of migrants seeking asylum in the US that will be returned to Mexico. The Mexican authorities will likely have to set up facilities in the north of the country to accommodate the asylum seekers and to provide for their security (many of the border towns are already dealing with serious violence and security issues).
  • If, as seems likely, the number of Central American migrants waiting for the adjudication of US asylum claims grows, there is the risk of tensions in Mexican border communities, as this could put pressure on local social services and stretch local governments’ capacity to attend to the local and arriving communities. Furthermore, diverting limited security forces and law and order assets to both borders may leave other parts of the country thin and exposed in term of security. Overall, beyond the economic costs, the concession made by the Mexican authorities could also be politically costly for President Lopez Obrador, whose political support base is not particularly engaged on Central America asylum and migration to the US issues.
  • The tariffs issue is likely not dead, just dormant. If the Mexican authorities fail to adequately enforce the agreement and/or change the situation at the border in a way that is deemed satisfactory for the US, the threat of punitive tariffs, or other actions, could return. In this regard, US Treasury Mnuchin stated that President Trump will “retain authority to impose tariffs if Mexico fails to live up to immigration deal commitments”. The risk of a resurgence of the immigration and tariffs issue could increase as the US election dynamics intensify.

Of course, if the New York Times’ reporting is accurate, than all of these issues were really laid out months ago, and the tariff debacle was little more than a publicity stunt – a notion that President Trump deeply resents.

end

7  OIL ISSUES

For those of you who think that the USA economy is still executing on all 4 cylinders led by shale production:  guess again…the industry is nothing but a gusher of red ink…

(courtesy// Nick Cunningham)

A “Gusher Of Red Ink” For US Shale

Authored by Nick Cunningham via OilPrice.com,

Oil prices are off more about 20 percent in the last two weeks on growing fears of a brewing economic recession. Commodities of all types have been hammered by the pessimism.

“Fear of global economic growth slowing,” said Peter Kiernan, lead energy analyst at the Economist Intelligence Unit (EIU), according to Reuters, “afflicting the entire energy complex with worries that demand growth will be bearish this year.” Prices for coal, natural gas and LNG, and crude oil have plunged.

“The continued escalation in trade tensions and broad-based fall in manufacturing…suggest that the downside risks to growth are becoming more prominent,” Morgan Stanley analysts said in a note.

Yet another downturn could not come at a worse time for U.S. shale drillers, who have struggled to turn a profit. Time and again, shale executives have promised that profitability is right around the corner. Years of budget-busting drilling has succeeded in bringing a tidal wave of oil online, but a corresponding wave of profits has never materialized.

Heading into 2019, the industry promised to stake out a renewed focus on capital discipline and shareholder returns. But that vow is now in danger of becoming yet another in a long line of unmet goals.

“Another quarter, another gusher of red ink,” the Institute for Energy Economics and Financial Analysis, along with the Sightline Institute, wrote in a joint report on the first quarter earnings of the shale industry.

The report studied 29 North American shale companies and found a combined $2.5 billion in negative free cash flow in the first quarter. That was a deterioration from the $2.1 billion in negative cash flow from the fourth quarter of 2018. “This dismal cash flow performance came despite a 16 percent quarter-over-quarter decline in capital expenditures,” the report’s authors concluded.

They argue that the consistent failure for the sector as a whole to generate positive free cash flow amounts to an indictment of the entire business model. Sure, a few companies here and there are profitable, but more broadly the industry is falling short. The “sector as a whole consistently fails to produce enough cash to satisfy its voracious appetite for capital,” the report said. The 29 companies surveyed by IEEFA and Sightline Institute burned through a combined $184 billion more than they generated between 2010 and 2019, “hemorrhaging cash every single year.”

Rystad Energy put it somewhat differently, although came to the same general conclusion.

“Nine in ten US shale oil companies are burning cash,” the Norwegian consultancy said late last month. Rystad studied 40 U.S. shale companies and found that only four had positive cash flow in the first quarter. In fact, the numbers were particularly bad in the first three months of this year, with the companies posting a combined $4.7 billion in negative cash flow. “That is the lowest [cash flow from operating activities] we have seen since the fourth quarter of 2017,” Rystad’s Alisa Lukash said in a statement.

“Recently released data, which confirmed dismal first quarter earnings, only served to cement negative market sentiment,” Lukash said. “While shale operators continue to focus on improving capital efficiency, investors are putting the industry under extreme pressure, leaving no room for undisciplined spending in 2019.”

More than 170 U.S. shale companies have declared bankruptcy since 2015, affecting nearly $100 billion in debt, according to Haynes and Boone. There have been an estimated 8 bankruptcies already this year, with some $3 billion in debt restructured.

“Frackers’ persistent inability to produce positive cash flows should be of grave concern to investors,” authors from IEEFA and the Sightline Institute wrote.

“Until fracking companies can demonstrate that they can produce cash as well as hydrocarbons, cautious investors would be wise to view the fracking sector as a speculative enterprise with a weak outlook and an unproven business model.”

The industry kept humming along over the past few years, riding out multiple downturns due to periodic reinjections of capital from Wall Street. But, investors are beginning to sour on shale drillers. Very little fresh capital has been raised by shale companies, either from new equity or bond issuance, since late last year, according to IEEFA and Sightline.

The industry now finds itself at a cross roads. With capital markets beginning to shun shale drillers, consolidation is likely the direction the industry will take. The best bet for struggling companies now is to find a willing buyer.

But several oil majors have recently said that shale drillers are fooling themselves with their asking prices. “Most of the things we see tend to look overpriced, and we have tried to maintain cool heads,” Royal Dutch Shell’s CFO Jessica Uhl said on Tuesday, according to Argus Media. Exxon’s CEO Darren Woods echoed that, saying last week that there is “not always alignment among buyers and sellers.” ConocoPhillips’ chief executive Ryan Lance said there are “a lot of bid-ask issues in the market today,” adding that an “expectations change” will be needed before more M&A can occur.

The renewed plunge in oil prices may inject a dose of reality into the shale sector. With WTI back in the low-$50s, the pressure on struggling drillers may intensify.

END

Tom Luongo on the same subject as above

(courtesy zerohedge)

Energy Dominance Or Flatulence? Shale Drillers Bleed Cash

Authored by Tom Luongo,

All of President Trump’s foreign policy can be summed up by two themes, making the world safe for Israel and controlling the price of energy.

He calls the latter “Energy Dominance.” And to those who still believe Trump has a plan, these two things are the only ones consistently in evidence.

His reactions to things contrary to his plan, however, are purely limbic.

These two themes converge completely with Iran. Trump wants Iran neutered to force Jared Kushner’s now-delayed again, “Deal of the Century” onto the Palestinians while also taking Iran’s oil off the market to support surging U.S. domestic production in the hopes of taking market share permanently.

Everything Trump does is in support of these two themes while throwing some red meat at his base over China, Mexico and the border.

It was never his intention to leave Syria back in December, really. Look how easy was it for John Bolton and the Joint Chiefs to convince him to stay because how else would we cut Iran’s exports to zero if we didn’t stop the land route through Iraq?

This is why we’re still harboring ISIS cells in the desert crossing around Al-Tanf at the Jordan/Iraq/Syria border, to stop Iranian oil from coming into the country.

This feeds right into hurting all of Syria’s allies to strengthen Israel’s position.

To paraphrase the song from Aladdin, “It’s stupid, but hey, it’s home.”

If the average Trump voter truly understood the lengths we are going to starve the Syrian army from having enough energy to finish wiping out the Al-Qaeda-linked groups in Idlib and Homs provinces they would burn their MAGA hats and stay home next November.

But they don’t so Trump’s approval rating keeps climbing.

On the other hand, people mostly understand exactly what the “Bay of Fat Pigs” operation in Venezuela was all about, protecting domestic oil production and getting control of Venezuela’s.

The sad truth is that many Americans consider this comeuppance for being stupid enough to elect Nicolas Maduro President.

But this is the guts of Trump’s “Energy Dominance” policy. Use tariffs, sanctions, threats and hybrid warfare to destroy the competition and therefore MAGA.

It would be sad if it wasn’t so pathetic.

And the irony is that the whole plan is predicated on sustainable and nigh-exponential growth of U.S. domestic production.

There’s only one problem with that. It’s completely unsustainable.

The greatness of the U.S. production story is evident if you only look at the number of barrels produced. But that story turns into a nightmare the minute you look one inch deeper to see what the cost of those barrels are and what profit, if any, they produce.

From Zerohedge via Nick Cunningham at Oilprice.com comes this beauty of an image:

Heading into 2019, the industry promised to stake out a renewed focus on capital discipline and shareholder returns. But that vow is now in danger of becoming yet another in a long line of unmet goals.

“Another quarter, another gusher of red ink,” the Institute for Energy Economics and Financial Analysis, along with the Sightline Institute, wrote in a joint report on the first quarter earnings of the shale industry.

The report studied 29 North American shale companies and found a combined $2.5 billion in negative free cash flow in the first quarter. That was a deterioration from the $2.1 billion in negative cash flow from the fourth quarter of 2018. “This dismal cash flow performance came despite a 16 percent quarter-over-quarter decline in capital expenditures,” the report’s authors concluded.

So, higher cash burn rates at high sale prices (remember Q1 here) and lower capex costs as the rig count hits a fifteen-month low.

You can’t hide a lack of profitability forever with financial engineering folks. Even Elon Musk is beginning to figure this out. And, once that reaches critical mass, to quote one of my favorite philosophers, The Tick, “Gravity is a harsh mistress.”

What was that old joke?

“So if we’re selling dollars for ninety-cents how do we make money?”

“Volume.”

If that doesn’t sum up where we are today in the energy space I don’t know what does.

All of this is a product of the Fed’s ridiculous zero-bound interest rate policy allowing energy drillers to issue obscene amounts of low-quality shares and lower-quality debt packaged in such a way to yield the magic 7.5% most pension funds need to maintain their defined benefit payouts without going broke.

This cycle is only partially derailed by the Fed raising rates a couple of points to 2.75%.

All Trump cares about is getting a 4% GDP print before next year’s election to prove his critics wrong. This is why he wants the Fed to lower rates.

It will keep the shale boom going pumping massive amounts of oil which we can’t ship to the coasts to sell to people who don’t want it.

And even if all of the new pipeline capacity alleviates the internal glut that doesn’t mean there’s a market for more of it. Remember, shale produces ultra light sweet crude which most refiners have to blend with heavier feedstock so there really is an upper limit as to how much of this stuff the market wants.

The current and persistent discount of West Texas to Brent, which is still over $9 per barrel is a measure of this since most oil is priced in relation to Brent, even heavy sour grades like Russian Urals, which we’re importing more of to feed domestic refineries strapped for stock now that we’ve embargoes Venezuelan oil.

If the shale boom is so sustainable why are frackers flaring off obscene amounts of natural gas that comes along with it? Why are they wasting what should be salable energy? Maybe because there’s no market for it?

Rystad puts it into context, noting that the most productive gas facility in the U.S. Gulf of Mexico – Shell’s Mars-Ursa complex – produces about 260 to 270 MMcfd of gross natural gas. In other words, the most productive gas project in the Gulf of Mexico only produces about 40 percent of the volume of gas that is being flared and vented in West Texas and New Mexico every single day.

Given this situation I think we’ve reached that part of the story where someone just let a really big one rip and no one is willing to acknowledge it.

Dood… Natural Gas is Awesome!

This is classic overproduction based on time-preference mis-coordinating the use of capital due to artificially-low interest rates. It has nothing to do with a normally functioning market.

But this situation can go on a lot longer thanks to the realities outside of the U.S. shale industry.

When the Fed finally does lower interest rates it won’t be to save the energy producers in North Dakota. It will be to save the banking system from a dollar liquidity shock that will implode Europe.

The market’s reaction to Friday’s horrific jobs report was pure front-running that rate cut mixed with safe-haven behavior knowing that the global growth story is dead.

The U.S. yield curve imploded another 6 basis points. Gold popped to a 2019 high, the Dow put in a major reversal and the euro rallied after a massive run-up in euro-bonds before the New York open reversed some of that.

And there’s Trump demanding lower oil prices on Twitter which is just feeding the problems of the shale drillers already underwater. Rock meet hard place.

Dollars for eight-five cents? MOAR volume!

So Trump has gotten what he wants but not for the reasons he wants it. With growth dying thanks, in part, to his random acts of financial terror, oil prices are now in free fall.

I identified the signals for my Patrons in a Market Report on May 26th, noting a back-to-back-to-back set of reversals I deemed “hugely bearish.” Sometimes, it’s just that easy. More often than not the market is telling you what you need to know, if you would only turn off the spin-machines and read the tape.

But the sad truth is that once the Fed lowers rates the drillers will be encouraged to go back to the credit well one more time because there will be even more demand for their crappy paper. In a yield-starved world everyone is trying to stave off the day of reckoning for as long as possible.

And right now, U.S. pension managers are a shale drillers’ best friend. And so is an ECB trapped like an egg in a vice between a faltering German economy and political system undermining what’s left of growth across Europe.

But not a U.S. President intent on creating a world few want and fewer benefit from while wasting a precious energy by the cubic shit load for a couple hundred thousand votes more than a year from now.

MAGA bitchez.

*  *  *

8. EMERGING MARKETS

VENEZUELA

This is what happens to a rich country who embraced socialism

(courtesy zerohedge)

 

More Than 4 Million Venezuelans Have Now Fled The Country

Ah, the joys of socialism. Amidst a growing political and economic crisis, 4 million citizens have now fled Venezuela. According to a new report by the UN Refugee Agency and the International Organization for Migration, the pace at which citizens are leaving the country has been “staggering”, rising from 695,000 people in 2015 to over 1 million people since November 2018.

The countries surrounding Venezuela have been forced to put regulatory measures in place to stop the flow of migrants, which will soon be the largest in Latin American history, according to Bloomberg. Should the exodus continue, it could surpass the 6.3 million refugees created by the Syrian civil war. 

Over 12 countries met last year to address the flow of migrants that is putting pressure on resources and stoking tensions in the region. A universal policy for dealing with the problem has yet to be enacted and, on Thursday, Peru said it would increase controls later this month by requiring Venezuelans to apply for humanitarian visas before crossing the border.

Colombia remains the primary destination for those leaving Venezuela, and it now hosts 1.3 million people who have fled the country. Peru hosts 768,000; Chile 288,000; Ecuador 263,000; Brazil 168,000 and Argentina 130,000. Mexico, Central America and the Caribbean have also seen an influx of Venezuelan migrants.

Eduardo Stein, the joint UNHCR-IOM Special Representative for Venezuelan refugees and migrants said: “These alarming figures highlight the urgent need to support host communities in the receiving countries. The countries are doing their part to respond to this unprecedented crisis but they cannot be expected to continue doing it without international help.”

Just days ago we reported that Venezuela had defaulted on $750 million in gold-backed swaps with Deutsche Bank. As part of a financing agreement signed in 2016 which we profiled here, Venezuela received a cash loan from Deutsche Bank and put up 20 tons of gold as collateral. The agreement, which was set to expire in 2021, was settled early due to missed interest payments as Venezuela has now effectively run out of foreign reserves.

END

 

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

Euro/USA 1.1310 DOWN .0020 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 /GREEN

 

 

USA/JAPAN YEN 108.62 UP 0.497 (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 1.2677   DOWN   0.0048  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3267 UP .0015 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  MONDAY morning in Europe, the Euro FELL BY 20 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1310 Last night Shanghai COMPOSITE CLOSED UP 24.23 POINTS OR .86% 

 

//Hang Sang CLOSED UP 613.36 POINTS OR 2.27%

 

 

 

 

 

/AUSTRALIA CLOSED UP 0.91%// EUROPEAN BOURSES ALL GREEN

 

 

 

 

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 613.36 POINTS OR 2.27%

 

 

 

 

 

 

/SHANGHAI CLOSED UP 24.23 POINTS OR .86%

 

 

 

 

 

 

 

 

 

Australia BOURSE CLOSED UP 0.91% 

 

 

Nikkei (Japan) CLOSED UP 249.71  POINTS OR 1.21%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1327,30

silver:$14.74

Early MONDAY morning USA 10 year bond yield: 2.14% !!! UP 5 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 2.62 UP 6  IN BASIS POINTS from FRIDAY night.

USA dollar index early THURSDAY morning: 96.84 UP 29 CENT(S) from  FRIDAY’s close.

This ends early morning numbers MONDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing MONDAY NUMBERS \12: 00 PM

Portuguese 10 year bond yield: 0.68% UP 6 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.12%  DOWN 0   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.60%//UP 5 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD: 2.36down 0 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 176 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: RISES –.22% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.58% 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 MONDAY

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

Euro/USA 1.1310  DOWN    .0021 or 21 basis points

USA/Japan: 108.56 UP 434 OR YEN DOWN 43  basis points/

Great Britain/USA 1.2683 DOWN .0043 POUND DOWN 43  BASIS POINTS)

Canadian dollar DOWN 13 basis points to 1.3264

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 6.9311    0N SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.9414  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.7777 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.12%

 

Your closing 10 yr US bond yield UP 6 IN basis points from FRIDAY at 2.14 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.63 UP 5 in basis points on the day

Your closing USA dollar index, 96.79 UP 25  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED UP 43.60  0.59%

German Dax :  CLOSED

 

Paris Cac CLOSED UP 18,45 POINTS 0.34%

Spain IBEX CLOSED UP 58.00 POINTS or 0.63%

Italian MIB: CLOSED UP 1214.40 POINTS OR 0.61%

 

 

 

 

 

WTI Oil price; 54.04 12:00  PM  EST

Brent Oil: 63.10 12:00 EST

USA /RUSSIAN /   ROUBLE CROSS:    64.84  THE CROSS LOWER BY 0.23 ROUBLES/DOLLAR (ROUBLE HIGHER BY 23 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.24 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 :  53.32//

 

 

BRENT :  62.28

USA 10 YR BOND YIELD: … 2.14…   VERY DEADLY//

 

 

 

 

 

 

 

 

 

USA 30 YR BOND YIELD: 2.62..VERY DEADLY/

 

 

 

 

 

EURO/USA 1.1318 ( DOWN 13   BASIS POINTS)

USA/JAPANESE YEN:108,44 UP .316 (YEN DOWN 31 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 96.74 UP 20 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2693 DOWN 33  POINTS

 

the Turkish lira close: 5.7811

 

 

the Russian rouble 64.75   UP 0.03 Roubles against the uSA dollar.( UP 3 BASIS POINTS)

Canadian dollar:  1.3264 UP 11 BASIS pts

USA/CHINESE YUAN (CNY) :  6.9311  (ONSHORE)/we need to watch these levels/anything greater than 6.95 will be deadly./

 

USA/CHINESE YUAN(CNH): 6.9420 (OFFSHORE) we need to watch these levels/anything greater than 6.95 will be deadly/

German 10 yr bond yield at 5 pm: ,-0.22%

 

The Dow closed  UP 78.74 POINTS OR 0.30%

 

NASDAQ closed up 81.07 POINTS OR 1.05%

 


VOLATILITY INDEX:  16.04 CLOSED DOWN .326

LIBOR 3 MONTH DURATION: 2.450%//

 

 

 

FROM 2.453

 

 

 

And now your more important USA stories which will influence the price of gold/silver

TRADING IN GRAPH FORM FOR THE DAY//

Morning Market Melt-Up Momentum Fades But Bonds & Bullion Slide

Powell to markets – “Never gonna let you down”……

 

Chinese markets rallied overnight, but faded in the afternoon session….

Chinese markets rallied overnight, but faded in the afternoon session…

 

European markets also extended last week’s gains…

 

US Equity markets continued to rise today (Dow up for the sixth straight day higher – longest streak since May 2018) following the US-Mexico deal (buy the news?)…but no closing melt-up today

NOTE – the Nasdaq was up over 2% around the European close but stocks faded from that point.

Nasdaq broke above its 50DMA today, but was unable to hold it…

NOTE – The Dow and S&P held above their 50DMA but Small Caps were unable to break the highly clustered DMAs…

 

But notably, the market is shifting very modestly more hawkish as stocks rebound…

 

And bonds refuse to play along…

 

Notably, the initial momentum-ignition short-squeeze faded after Europe closed…

 

And then there’s BYND!! Now up 600% from its IPO price…

 

VIX and stocks are decoupled for the second day in a row…

 

Treasury yields rose notably on the day…

 

But if we pull back a little, they merely tested the upper range of the last few days trading…

 

And no follow-through in the 2Y Yield…

 

The Dollar Index ended the day almost unchanged after a small roundtrip higher overnight …

 

Yuan tested down towards 7 month lows

 

The peso erased last week’s losses, perfectly retracing the post-Trump-traiff threat drop…

 

Bitcoin managed to hold gains as Litecoin jumped and Ripple dumped…

 

With Bitcoin hovering around $8000…

 

After 8 weeks lower, copper was up today as PMs and crude slipped lower…

 

Gold was down today, breaking its longest win streak since 2010

 

WTI was unable to hold the $54 print…

 

Finally, the share prices of the world’s most systemically-important banks are not suggesting all is well…

Embedded video

Hipster@Hipster_Trader

Live shot of investors waiting to buy the dip

149 people are talking about this

end

 

i) Market trading/

 

MARKET TRADING/EARLY THIS MORNING

Dollar, Bond Yields Slide As Trump Warns China, Slams Fed; Stocks Shrug

President Trump did a surprise interview on CNBC this morning covering everything from China trade to the Raytheon-UTX deal.

Most notably were his comments about The Fed, slamming them as a disruptive forceand said they haven’t listened to him, “made a mistake,” by raising rates too much and doing QT.

And China, where Trump accused them of currency manipulation and said he expected to meet Xi at the G20 but if Xi doesn’t go then he will unleash the new tariffs.

Additionally, Trump claimed that China’s weakening currency has offset some of the effects of tariffs.

The Dollar and Bond yields are sliding on Trump’s comments, but – for now – stocks don’t care…

Additional key headlines (via Bloomberg) include:

  • *TRUMP SAYS HE’S CONCERNED ABOUT UNITED TECHNOLOGIES, RAYTHEON
  • *TRUMP: UNITED TECHNOLOGIES, RAYTHEON DEAL MAY CUT COMPETITION
  • *TRUMP SAYS HUAWEI COULD BE PART OF TRADE TALKS WITH CHINA
  • *TRUMP SAYS U.S. CHAMBER OF COMMERCE SHOULD REPRESENT U.S.

 

end

 

LATE AFTERNOON TRADING

 

ii)Market data/

More indications that the uSA economy is faltering; job openings fall and layoffs pick up

(courtesy zerohedge)

Job Openings Fall In April, Layoffs Pick Up

After February’s big dip, and March’s rebound, April Job Openings data was expected to extend the bounce modestly in April but it did not.

April Job Openings fell to 7.449 million (7.496 million expected) from a revised lower 7.474 million in March, but Job Openings remain above the number of unemployed workers in America for the 14th month in a row…

 

There are 0.78 unemployed job seekers for each available job.

Quits reached a new record high but layoffs also ticked higher…

 

Layoffs and discharges at 1.2% in 2019 vs 1.1% in March

  • 1,752,000 people were fired or laid off in April vs 1,788,000 in April last year
  • An additional 344,000 people left their employer due to retirements, transfers to other locations, death, and separations due to disability

On the heels of Friday’s dismal payrolls print, this weaker JOLTS print suggests perhaps the jobs outlook is not as rosy as many perceive.

end

iii)USA ECONOMIC/GENERAL STORIES

Trump reaches a deal with Mexico. Let’s see if they will abide by the conditions of  the agreement

(courtesy zerohedge)

 

-END-

Let us conclude tonight with this great interview of Craig Hemke with Greg hunter

 

https://usawatchdog.com/2019-best-year-for-precious- metals-since-2010-craig-hemke/

2019 Best Year for Precious Metals Since 2010 – Craig Hemke

By Greg Hunter’s USAWatchdog.com (Early Sunday Release)

Financial writer and precious metals expert Craig Hemke says the reason you are seeing the wild markets and rising gold prices is all attributed to the Fed. It is in a horrible position. Hemke explains, “I don’t think ‘panicked’ is the right word because that means they are running around with their hair on fire terrified. I think they realize the corner into which they painted themselves. They are trying to mitigate the damage as much as they can. . . . The smartest thing the Fed can do right now at the next Fed meeting (June 18 & 19) is to cut the Fed Funds Rate by 50 basis points. They could at least kind of get the yield curve flat again, and not leave it so it looks like you are definitely headed into a recession. (Fed Head) Powell is not going to do that because it will look like he’s doing what Trump is telling him to do. . . .He’s probably going to cut by a quarter point. . . . There is also a pretty good chance he does nothing. . . . The reason why interest rates all along that curve are going lower and lower is because money all around the world sees we all are headed into a recession.”

Hemke says confidence in central banks is going to crash right along with the global economy. Hemke contends, “Now, this next time when the economy crashes, which it will inevitably will, they’ll be exposed for the charlatans that they are, stringing everybody along, pretending like they’ve got it under control, confidence in the central bank is going to crash. This means confidence in fiat currency is going to crash, and the only real alternative to fiat currency is sound money and that’s gold. That’s the first big part of why it’s different this time. The other big part is just the math. We are up to $22 trillion in debt versus $10 trillion back in 2009. . . . The deficit through 2029 is $1 trillion a year, and that is under a forecast of 3% economic growth. You are not going to get 3% economic growth. When it’s 1% or 0%, then your tax receipts fall dramatically. Then your deficit explodes.”

Hemke goes on to say, “So, this idea that the Fed can just keep doing what they are doing and things can just keep marching along–no. We are finally at the end of the charade. It’s lasted a lot longer than I thought it could. . . . Now, in 2019, we are right back to where we were in 2010. This is vitally important for people to understand. Eventually, gold is going to break out this year. It’s going to go above $1,360 and the whole world is going to figure this out, and prices are going to accelerate. People who are not buying it now are going to get left behind. . . . Once the demand for all these dollars starts to fall off and disappear, well, those dollars are still out there, and they are all going to come back here to our shores. That’s when you start to get this runaway or hyperinflation because you’ve got so many more dollars than you have demand for dollars. That lessens the value of the dollar and goods go up in cost. . . . The idea you could get 20% inflation is certainly plausible and feasible. . . . Nothing has proven more effective in history to preserve wealth than gold and silver—nothing! . . . . 2019 will be the best year for precious metals since 2010.”

Join Greg Hunter as he goes One-on-One with Craig Hemke, founder of TFMetalsReport.com .

-END-

WELL THAT ABOUT DOES IT FOR TONIGHT

I WILL SEE YOU TUESDAY NIGHT.

HARVEY

2 comments

  1. Hi Harvey,
    In the last few posts, everything after the start of the 7. OIL ISSUES section seems to display as a single paragraph. But if I create a new HTML file containing the source only for the portion starting with the 8. EMERGING MARKETS section, this material seems to display correctly. I don’t recall seeing this problem before and thought I’d mention it in case the problem isn’t caused by my browser version or other technology on my end.

    Like

  2. I just realized that I mistakenly typed “https” instead of “http” in my website’s URL in the metadata for the above comment. This comment has it correct (“http”). Sorry about that.

    Like

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