JUNE 18/D DAY TOMORROW AS MARIO DRAGHI PREEMPTS JEROME POWELL/TOMORROW POWELL ANNOUNCES A POSSIBLE RATE CUT AND GOLD SHOULD MOVE NORTHBOUND//GOLD UP $7.60 TODAY TO $1347.00 //SILVER ADVANCES BY 18 CENTS TO $15.01.

GOLD: $1347.00  UP $7.60 (COMEX TO COMEX CLOSING)

Silver:  $15.01 UP 18 CENTS  (COMEX TO COMEX CLOSING)//

Closing access prices:

Gold : $1346.85

silver:  $15.01

 

TOMORROW IS THE BIG FOMC MEETING.  DRAGHI PREEMPTED POWELL TODAY BY UNLEASHING POSSIBLE QE IN EUROPE

HERE ARE THE KEY PRICES OF GOLD AND SILVER TO WATCH FOR:

 

GOLD: $1350.  THIS LEVEL IS IMPORTANT FOR THE BANKERS AND NO DOUBT HUGE DERIVATIVE TRADES WERE INITIATED HERE.  THE BANKERS WILL DEFEND THEIR LIVES AT THIS LEVEL.  GOLD HAS BEEN BEATEN BACK AT LEAST 6 TIMES ONCE GOLD PIERCED $1350.

SILVER:  $15.06.  MANY ARE COMMENTING ON $15.00 BUT THE REAL PRICE TO WATCH IS $15.06 AS THIS WAS THE PRICE THAT SILVER WAS BEATEN BACK DOWN INTO THE LOW 14 DOLLAR LEVEL.  A PIERCING OF 15.06 WILL CREATE NIGHTMARE FOR OUR BANKERS.

 

STAY TUNED FOR TOMORROW..IT WILL BE A BIG DAY.

 

 

 

YOUR DATA…

COMEX DATA

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

today RECEIVING  237/301

XCHANGE: COMEX
CONTRACT: JUNE 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,338.700000000 USD
INTENT DATE: 06/17/2019 DELIVERY DATE: 06/19/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
657 C MORGAN STANLEY 2
661 C JP MORGAN 259 237
686 C INTL FCSTONE 9
690 C ABN AMRO 1
737 C ADVANTAGE 18 61
800 C MAREX SPEC 1
905 C ADM 14
____________________________________________________________________________________________

TOTAL: 301 301
MONTH TO DATE: 2,114

 

NUMBER OF NOTICES FILED TODAY FOR  JUNE CONTRACT: 301 NOTICE(S) FOR 30100 OZ (0.9362 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  2114 NOTICES FOR 211,400 OZ  (6.5754 TONNES)

SILVER

FOR JUNE

3 NOTICE(S) FILED TODAY FOR 15,000  OZ/

total number of notices filed so far this month: 343 for 1765,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 9163 DOWN 143 

Bitcoin: FINAL EVENING TRADE: $ 9101 DOWN 207

 

end

XXXX

Let us have a look at the data for today

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IN SILVER THE COMEX OI ROSE A TINY  SIZED 84 CONTRACTS FROM 232,913 UP TO 232,997 ACCOMPANYING THE 1 CENT GAIN IN SILVER PRICING AT THE COMEX.( LIQUIDATION OF THE SPREADERS HAVE STOPPED FOR GOLD . HOWEVER WE ARE WITNESSING A RISE IN SPREADING ACCUMULATION BY THE BANKERS IN SILVER)..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 SMALL SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:,

0 FOR JUNE, 406 FOR JULY. 0 FOR AUGUST, 0 FOR SEPT, AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  406 CONTRACTS. WITH THE TRANSFER OF 406 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 406 EFP CONTRACTS TRANSLATES INTO 2.03 MILLION OZ  ACCOMPANYING:

1.THE 1 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:

32,529 CONTRACTS (FOR 12TRADING DAYS TOTAL 32,529 CONTRACTS) OR 162.65MILLION OZ: (AVERAGE PER DAY: 2710 CONTRACTS OR 13.56 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JUNE:  162.65 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 23.23% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)*  JUNE’S 345.43 MILLION OZ IS THE SECOND HIGHEST RECORDED ISSUANCE OF EFP’S AND IT FOLLOWED THE RECORD SET IN APRIL 2018 OF 385.75 MILLION OZ.

ACCUMULATION IN YEAR 2019 TO DATE SILVER EFP’S:          1033.40   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 TINY SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 84, WITH THE 1 CENT GAIN IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  SMALL SIZED EFP ISSUANCE OF 406 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 FAIR SIZED: 490 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 406 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 84  OI COMEX CONTRACTS. AND ALL OF THIS HUGE DEMAND HAPPENED WITH A  1 CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $14.83 WITH RESPECT TO YESTERDAY’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: 3 NOTICE(S) FOR 15,000 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 NO DOUBT HAD SOME ACTIVITY OF  SPREADING ACCUMULATION IN SILVER TODAY AS TOTAL OI ROSE SHARPLY WITH THE SMALLISH GAIN OF 1 CENT. 

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 SMALL SIZED 963 CONTRACTS, TO 523,341 DESPITE THE $1.65 PRICING LOSS WITH RESPECT TO COMEX GOLD PRICING YESTERDAY// /THE SPREADING LIQUIDATION HAS STOPPED AND THESE SPREADERS HAVE ALREADY MORPHED INTO SILVER AND THEY ARE INTO THE ACCUMULATION PHASE OF THEIR OPERATION. THUS THE GAIN IN OI IS REAL AS INVESTORS ARE POURING INTO THE GOLD SECTOR  

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 5891 CONTRACTS:

APRIL 0 CONTRACTS,JUNE: 0 CONTRACTS, AUGUST 2019: 5891 CONTRACTS, DEC>  0 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 523,341.  ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A STRONG SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 6854 CONTRACTS: 963 CONTRACTS INCREASED AT THE COMEX  AND 5891 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 6854 CONTRACTS OR 685,400 OZ OR 21.31 TONNES.  YESTERDAY WE HAD A TINY LOSS OF $1.65 IN GOLD TRADING.AND WITH THAT SMALL LOSS IN  PRICE, WE  HAD A STRONG GAIN IN GOLD TONNAGE OF 21.31  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 JUNE : 115,174 CONTRACTS OR 11,517,400 oz OR 358.24 TONNES (12 TRADING DAYS AND THUS AVERAGING: 9597 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 12 TRADING DAYS IN  TONNES: 358.24 TONNES

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

THUS EFP TRANSFERS REPRESENTS 358.24/3550 x 100% TONNES =10.09% OF GLOBAL ANNUAL PRODUCTION

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     2,636.13 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 SMALL SIZED INCREASE IN OI AT THE COMEX OF 963 DESPITE THE PRICING LOSS THAT GOLD UNDERTOOK ON YESTERDAY($1.65)) //.WE ALSO HAD  A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 5891 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 5891 EFP CONTRACTS ISSUED, WE  HAD AN STRONG SIZED GAIN OF 6854 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

5891 CONTRACTS MOVE TO LONDON AND 963 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 21.31 TONNES). ..AND THIS INCREASE OF  DEMAND OCCURRED DESPITE A LOSS IN PRICE OF  $1.65 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX. WE  HAD ZERO PRESENCE OF SPREADING ACCUMULATION IN GOLD  ///TODAY/

we had:  301 notice(s) filed upon for 30,100 oz of gold at the comex.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

WITH GOLD UP $7.60 TODAY//

NO CHANGES IN GOLD INVENTORY AT THE GLD:

 

INVENTORY RESTS AT 764.10 TONNES

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

SLV/

WITH SILVER UP 18 CENTS TODAY:

NO CHANGES WITH RESPECT TO SILVER INVENTORY  AT THE SILVER SLV:

/INVENTORY RESTS AT 319.070 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 TINY SIZED 84 CONTRACTS from 232,913 UP TO 233,207 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:

FOR JUNE 0 CONTRACTS AND JULY: 406 CONTRACTS FOR AUGUST: 0, FOR SEPT. 0  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 406 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 84 CONTRACTS TO THE 406 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A FAIR GAIN OF 490 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 2.45MILLION 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 2.770 MILLION OZ FOR JUNE.

RESULT: A TINY SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 1 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 406 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

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

(report Harvey)

.

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 2.54 POINTS OR 0.09%  //Hang Sang CLOSED UP 271.61 POINTS OR 1.00%   /The Nikkei closed DOWN 151.29 POINTS OR 0.72%//Australia’s all ordinaires CLOSED DOWN .58%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9267 /Oil DOWN TO 5189 dollars per barrel for WTI and 60.75 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.9267 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9374 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/

China is set to roll out its new rare earth policy as soon as next week and it will be restrictive

(courtesy zerohedge)

Beijing slams Washington’s latest feeble attempt to set up a Trump -Xi meeting\\

( zerohedge)

4/EUROPEAN AFFAIRS

 

i)EUROPE/USA/AIRBUS/BOEING

I would say that Boeing is in a heap of trouble.  On the first day of the big PARIS Air Show:  the orders:  Airbus 13 billion dollars worth of planes: Boeing zero

(zerohedge)

ii)ECB

Draghi clears the way for another round of stimulus which sends gold higher, the euro southbound.  Yields all around the world collapse

(courtesy zerohedge)

iii)Fascinating, the greatest manipulator of the them all, the USA/President Trump accuses Draghi /EU of manipulating the euro.

(courtesy zero hedge)

iv)ITALY/ITALIAN BANKS
My goodness:  Unicredit Italy’s largest bank plus 4 other smaller Italian banks have conspired to rip off customers in a flagrant diamond selling scheme whereby diamonds are sold for double or triple their true worth
(courtesy zerohedge)

v)GERMANY/DEUTSCHE BANK

Deutsche bank will try anything to get its stock up.  Now they are reports that they might sacrifice its CFO Von Moltke

(courtesy zerohedge)

vi)The following is a critical important commentary that you must read.  Many of you know full well that Deutsche bank is in serious trouble.  They are the world’s largest derivative player and we have long suspected that their derivative book is way off side.  You will also recall that Deutsche bank, unilaterally went to the judge in the gold and silver manipulation case to say that their are guilty of manipulating precious metals and if the court would go easy on them, they will provide copious emails and chat room discussions indicating that DB plus a plethora of other banks were guilty of collusion and manipulation..and they certainly provided the information to the court exactly like they said they would.

Jeffrey Snider believes that Deutsche bank believed that fixed income  (huge derivative plays) would be a winner from 2014 on.  They were wrong and now the bank is in a mess.
please read…
(courtesy Jeffrey Snider)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)IRAN/USA

Last night, we learn that the USA will send another 1000 troops to counter Iran.  The Pentagon releases new photos of the tanker attack and it almost definitely proves that it was down by Iran

(zerohedge)

ii)Iran/uSA

The Jerusalem post reveals that the uSA is planning a tactical assault on Iran.

(JERUSALEM POST)

iii)Iran/Japan/Globe
War Drums beating!! Pompeo to present military options to Trump who really does not want war. However, Trump will not stand for aircraft carriers being sitting ducks entering the Strait of Hormuz.
(courtesy zerohedge)

6. GLOBAL ISSUES

Unbelievable in a huge deflationary move, global yields are crashing all over the globe\

(courtesy zerohedge)

 

7. OIL ISSUES

8 EMERGING MARKET ISSUES

i)VENEZUELA/

9. PHYSICAL MARKETS

i)We have pointed out this story to you yesterday:  China has cut its ownership of US Treasuries and they are now at a 2 yr low

( Bloomberg)

ii)Huge Swiss refiner Metalor will stop processing artisanal gold to reduce the risk of illegality

( Reuters /GATA)

iii)Bill Murphy comments how strange it is that our monetary metals is trading from violent to comatose

(LeMetropolecafe/.Bill Murphy/GATA)

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

i)MARKET TRADING USA//

a)Market trading/LAST NIGHT/

b)MARKET TRADING/USA

Market soars with Trump indicating that he is to have an “extended meeting with Xi
(courtesy zerohedge)

ii)Market data/USA

Even though rates are plunging everywhere, housing starts slid in May

( zerohedge)

iii)USA ECONOMIC/GENERAL STORIES

a)The market will not like this: Trump is considering demoting Fed Chair Powell

( zerohedge)

b)An excellent commentary from Michael Snyder as he reviews all of those bad economic numbers coming out during this month

( Michael Snyder)

 

SWAMP STORIES

i)Very sad!! after saying a year ago that his border town in Texas was not a war zone, the Mayor of a border town in the De; Rio district now is freaking out at the Republican for their inaction as illegals are overwhelming his city.

( zerohedge)

ii)New Clinton email review reveals multiple security incidents

(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 SMALL SIZED 963 CONTRACTS TO A LEVEL OF 523,341 DESPITE THE FALL OF $1.65 IN GOLD PRICING WITH RESPECT TO YESTERDAY’S // COMEX TRADING)

WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF JUNE..  THE CME REPORTS THAT THE BANKERS ISSUED A STRONG SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 5891 EFP CONTRACTS WERE ISSUED:

0 FOR JUNE ’19: 0 CONTRACTS , AUG; 5891 CONTRACTS: DEC: 0   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  5891 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: 6854 TOTAL CONTRACTS IN THAT 5891 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A SMALL SIZED 963 COMEX CONTRACTS.  THE BANKERS SUPPLIED THE NECESSARY SHORT PAPER IN GOLD TO CONTAIN THE PRICE RISE. 

NET GAIN ON THE TWO EXCHANGES ::  6854 CONTRACTS OR 685400 OZ OR 21.31 TONNES.

We are now in the  active contract month of JUNE and here the open interest stands at 469 CONTRACTS as we LOST 121 contracts.  We had  119 notices filed yesterday so we lost 2 contracts or200 oz of gold that will not stand for delivery at the comex as it looks like supplies ran out. These players thus morphed into London based forwards and they will try their look on that side of the pond.  They received a fiat bonsu for their efforts.

The next contract month is the non active month of July and here the OI FELL by 48 contracts DOWN to 1338 contracts.  The next big active month for deliverable gold is August and here the OI ROSE by 133 contracts UP to 389,483.

TODAY’S NOTICES FILED:

WE HAD 301 NOTICES FILED TODAY AT THE COMEX FOR  30100 OZ. (0.9362 TONNES)

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And now for the wild silver comex results.

Total COMEX silver OI ROSE BY A SMALL SIZED 84 CONTRACTS FROM 232,913 UP TO 232,997 (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 TINY  OI COMEX LOSS OCCURRED WITH A ONE CENT GAIN IN PRICING.//YESTERDAY.

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF JUNE.  HERE WE HAVE 204 OPEN INTEREST CONTRACTS STAND FOR DELIVERY THUS LOSING 37 CONTRACTS.  WE HAD 40 NOTICES FILED ON YESTERDAY SO WE GAINED 3 CONTRACTS OR AN ADDITIONAL 15,000 OZ OF SILVER WILL STAND AT THE COMEX…. AND THESE GUYS REFUSED TO MORPH INTO A LONDON BASED FORWARD AS WELL AS NEGATING A FIAT BONUS FOR THEIR EXHAUSTIVE EFFORT IN TRYING TO OBTAIN METAL..

THE NEXT MONTH AFTER JUNE IS THE ACTIVE MONTH OF JULY.  HERE THE OI FELL BY 3168 CONTRACTS DOWN TO 121,837.  WE LOST 2 CONTRACTS OF OI FOR AUGUST TO STAND AT 822. THE NEXT BIG ACTIVE DELIVERY MONTH AFTER AUGUST IS SEPT AND HERE THE OI ROSE BY 3211 CONTRACTS UP TO 64,908 CONTRACTS.

TODAY’S NUMBER OF NOTICES FILED:

We, today, had 3 notice(s) filed for 15,000 OZ for the JUNE, 2019 COMEX contract for silver

Trading Volumes on the COMEX TODAY: 367,341  CONTRACTS 

CONFIRMED COMEX VOL. FOR YESTERDAY:  247,424  contracts

INITIAL standings for  JUNE/GOLD

June 18/2019

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
nil oz
Deposits to the Dealer Inventory in oz nil
Deposits to the Customer Inventory, in oz 22,505.00 oz

700 kilobars

No of oz served (contracts) today
301 notice(s)
 30,100 OZ
(0.9362 TONNES)
No of oz to be served (notices)
168 contracts
(16800 oz)
0.5225 TONNES
Total monthly oz gold served (contracts) so far this month
2114 notices
211400 OZ
6.5754 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

we had 0 dealer entry:

We had 1 kilobar entries

total dealer deposits: nil oz

total dealer withdrawals: nil oz

we had 1 deposit into the customer account

i) Into JPMorgan:  nil oz

ii) Into Bank of Nova Scotia: 22,505.00  oz

700 kilobars

this is a phony entry..they need paper gold elsewhere.

total gold deposits: 22,505.00  oz

 very little gold arrives from outside/ paper gold   arrived   today

we had 0 gold withdrawal from the customer account:

Gold withdrawals;

i)  We had 0 withdrawal:

total gold withdrawals; nil   oz

i) we had 0 adjustment today

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 301 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 237 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 (2114) x 100 oz , to which we add the difference between the open interest for the front month of  JUNE. (469 contract) minus the number of notices served upon today (301 x 100 oz per contract) equals 228,400 OZ OR 7.104 TONNES) the number of ounces standing in this active month of JUNE

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

No of notices served (2114 x 100 oz)  + (469)OI for the front month minus the number of notices served upon today (301 x 100 oz )which equals 228,400 oz standing OR 7.104 TONNES in this  active delivery month of JUNE.

We GAINED 2  contracts or an additional 200 oz will  stand as these guys REFUSED TO morph into London based forwards as well as NEGATING a fiat bonus.

SURPRISINGLY LITTLE TO NO  GOLD HAS BEEN ENTERING THE COMEX VAULTS AND WE HAVE WITNESSED THIS FOR THE PAST YEAR!!  WE HAVE ONLY 10.08 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 7.104 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;   7,697.675/092 oz 239.43 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 7.104 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 18 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
155.075.815 oz
CNT
Int DEL.
SCOTIA
Deposits to the Dealer Inventory
NIL oz

 

Deposits to the Customer Inventory
597,102.000 oz
JPM
No of oz served today (contracts)
3
CONTRACT(S)
(15,000 OZ)
No of oz to be served (notices)
201 contracts
1,005,000 oz)
Total monthly oz silver served (contracts) 353 contracts

1,765,000 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:  597,102.000  oz ???

ii)into everybody else:  0

 

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

JPMorgan now has 152.3 million oz of  total silver inventory or 50.18% of all official comex silver. (152.3 million/303.5 million)

total customer deposits today: 597,102.000  oz

we had 3 withdrawals out of the customer account:

i) out of int. Delaware: 26,445.915.

ii) Out of CNT: 29,896.910

iii) Out of Scotia: 98,732.990 oz

total 155,075.815  oz

we had 0 adjustments :

total dealer silver:  87.119 million

total dealer + customer silver:  303.593 million oz

The total number of notices filed today for the JUNE 2019. contract month is represented by 40 contract(s) FOR  40,000 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 353 x 5,000 oz = 1,765,000 oz to which we add the difference between the open interest for the front month of JUNE. (204) and the number of notices served upon today (3 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JUNE/2019 contract month: 353(notices served so far)x 5000 oz + OI for front month of JUNE( 204) -number of notices served upon today (3)x 5000 oz equals 2,770,000 oz of silver standing for the JN contract month.

WE GAINED 3 CONTRACTS OR AN ADDITIONAL 15,000 OZ WILL STAND AT THE COMEX AS THESE GUYS REFUSED TO MORPH INTO A LONDON BASED FORWARDS AND AS WELL THEY ALSO NEGATED A FIAT BONUS.  IT SEEMS THAT SOMEBODY WAS BADLY IN NEED OF PHYSICAL SILVER ON THIS SIDE OF THE POND.

TODAY’S NUMBER OF NOTICES FILED:

We, today, had 3 notice(s) filed for 15,000 OZfor the JUNE, 2019 COMEX contract for silver

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TODAY’S ESTIMATED SILVER VOLUME:  127,025 CONTRACTS (we had considerable spreading activity..accumulation

CONFIRMED VOLUME FOR YESTERDAY: 75,888 CONTRACTS..(we no doubt had considerable spreading activity as they are now starting to accumulate in silver)

YESTERDAY’S CONFIRMED VOLUME OF 75888 CONTRACTS EQUATES to 379 million  OZ 54.2% OF ANNUAL GLOBAL PRODUCTION OF SILVER

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

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

end

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NPV for Sprott 

1. Sprott silver fund (PSLV): NAV RISES TO -1.52% June 18/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -2.04% to NAV (june 18/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -1.52%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 13.20 TRADING 12.63/DISCOUNT 4.93

END

And now the Gold inventory at the GLD

JUNE 18/WITH GOLD UP $7.60: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 764.10 TONNES

JUNE 17/WITH GOLD DOWN $1.65 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 764.10 TONNES

JUNE 14/ WITH GOLD UP $1.05 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 4.40 TONNES OF PAPER GOLD INTO THE GLD///INVENTORY RESTS AT 764.10 TONNES

june 13/WITH GOLD UP $6.60 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.52 TONNES INTO THE GLD INVENTORY/INVENTORY RESTS AT 759.70 TONNES

JUNE 12/WITH GOLD UP $7.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 756.18 TONNES

JUNE 11/WITH GOLD UP $1.65 CENTS TODAY: A TINY CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF .24 TONNES AND THIS IS TO PAY FOR FEES/INVENTORY RESTS AT 756.18 TONNES

JUNE 10/WITH GOLD 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

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JUNE 18/2019/ Inventory rests tonight at 764.10 tonnes

*IN LAST 612 TRADING DAYS: 169.66 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 512 TRADING DAYS: A NET 4.03TONNES HAVE NOW BEEN REMOVED FROM THE GLD INVENTORY.

end

Now the SLV Inventory/

JUNE 18/WITH SILVER UP 18 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 319.070 MILLION OZ/

JUNE 17/WITH SILVER UP ONE CENTS TODAY: A BIG CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.295 MILLION OZ///INVENTORY RESTS AT 319.070 MILLION OZ//

JUNE 14/WITH SILVER DOWN 9  CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.775 MILLION OZ/

JUNE 13/WITH SILVER UP 11 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.775 MILLION OZ/

JUNE 12/WITH SILVER UP 4 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 1.413 MILLION OZ INTO THE SLV INVENTORY/INVENTORY RESTS AT 316.775 MILLION OZ/

JUNE 11/WITH SILVER UP 10 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 315.652 MILLION OZ//

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 18/2019:

Inventory 319.070 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 2.02/ and libor 6 month duration 2.31

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

G0LD LENDING RATE: + .29

XXXXXXXX

12 Month MM GOFO
+ 2.08%

LIBOR FOR 12 MONTH DURATION: 2.29

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.21

end

PHYSICAL GOLD/SILVER STORIES

end
i) GOLDCORE BLOG/Mark O’Byrne

Gold Rises In All Currencies – Gains 1.6% To £1,079/oz In GBP, Near 7 Year High

(courtesy Goldcore)

18, June

Gold prices have risen in all currencies today and especially in British pounds with gold having risen 1.5% to £1,078/oz. Concerns regarding the weak UK economy and Brexit fears continue to weigh on sterling.

More loose monetary policies are making gold attractive again as are the elevated economic and geopolitical risks which are leading to safe haven demand.

Gold has gained more than 6%, since touching a 2019 low of $1,265.85 in early May, due to these risks.

Gold had seen its usual Monday sell off as futures market participants took profits and pushed prices lower again.

The U.S. central bank is expected to leave borrowing costs unchanged this time but possibly lay the groundwork for a rate cut later this year which will support gold.

Expectations of interest rate cuts in the U.S. have increased amid the deepening U.S.-China trade war and signs that the U.S. economy is slowing significantly…

-END-

end

GATA STORIES WITH RESPECT TO GOLD/PRECIOUS METALS.

END

We have pointed out this story to you yesterday:  China has cut its ownership of US Treasuries and they are now at a 2 yr low

(courtesy Bloomberg)

China cuts U.S. Treasury holdings to 2-year low amid trade war

 Section: 

By Sarah McGregor and Katherine Greifeld
Bloomberg News
Monday, June 17, 2019

China cut its U.S. Treasury holdings to the lowest in almost two years as the months-long trade conflict dragged on between the worlds two largest economies.

The nation’s holdings of notes, bills, and bonds declined by $7.5 billion in April to $1.11 trillion, according to Treasury Department data released today in Washington.

The latest numbers were collected before tensions between Washington and Beijing escalated to a new level in May, when trade talks collapsed and President Donald Trump raised tariffs on $200 billion of Chinese goods and announced more increases to come. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-06-17/china-cuts-u-s-treasu…

END

Huge Swiss refiner Metalor will stop processing artisanal gold to reduce the risk of illegality

 

(courtesy Reuters /GATA)

Swiss refiner Metalor to stop processing artisanal gold

 Section: 

By Peter Hobson
Reuters
Monday, June 17, 2019

LONDON — Switzerland’s Metalor, one of the world’s biggest gold refineries, said today it would work only with gold from large industrial mines in order to reduce the risk of illegality in its supply chain.

Informal methods of gold production, known as “artisanal” or small-scale mining, have grown rapidly in recent years as demand for gold has boomed, pushing prices higher.

… 

Artisanal mining provides a livelihood to millions of people, often in poorer countries in South America, Africa and Asia. But it often leaks chemicals into rocks, soil, and rivers, working conditions can be appalling, and the gold such mining yields is often smuggled or used to launder money.

Metalor said it would stop working with artisanal mines or collectors and aggregators — companies that collect and resell gold from artisanal mines — because of the difficulty of ascertaining the mines’ legality and the origin of the gold. …

… For the remainder of the report:

https://www.reuters.com/article/gold-asm-metalor/swiss-refiner-metalor-t…

* * *

end

Bill Murphy comments how strange it is that our monetary metals is trading from violent to comatose

(LeMetropolecafe/.Bill Murphy/GATA)

Bill Murphy: Isn’t it strange? Monetary metals trading goes from violent to comatose

 Section: 

From “Midas” commentary
By Bill Murphy
www.LeMetropoleCafe.com
Monday, June 17, 2019

What will go on in the gold/silver markets will depend on what the Gold Cartel has in mind and what they can get away with. Their designs are well advertised for the public to see — those who want to anyway.

The bull camp is best represented by the physical market and whether it is strong enough to assist speculative longs to hold their ground. …

What is remarkable and not discussed in gold/silver land is how both precious metals can trade in such violent fashion, as they did Friday, and then go comatose as they did today on the Comex, which is just what occurred following the initial flurries. It is just not normal. …

Help keep GATA going:

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

http://www.gata.org

To contribute to GATA, please visit:

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

end



iii) Other Physical stories
We brought to you this article last Thursday.  It is so important that I decided to again send it to you in case you missed it last week.
(courtesy Ted Butler)

Pay Attention Why India is more focused on Silver than Gold

(courtesy Ted Butler)

Several recent articles have highlighted a surge of silver imports to India, prompting me to take a closer look. India has always been a big buyer of silver and gold, befitting the traditions and culture of the country with the world’s second largest population. The population of India, more than 1.3 billion citizens, is now only about 50 million less than that of China. Combined, both countries make up 35% of the total world population (7.7 billion) and have always been large buyers and holders of gold and silver. Together, India and China absorb close to 50% of total world gold and silver mine production.

One big difference between India and China is that the gold and silver buying in India is largely a grassroots phenomenon, emanating from the general population due to deep-rooted customs and traditions; where the buying from China is predominantly from official sources (similar to the gold buying by Russia). To me, this makes the gold and silver buying from India more “free market” and price-sensitive in nature because the more participants in any market, the freer the market is by definition. The many tens and even hundreds of millions of gold and silver buyers from India make the markets there the freest of all.

India has always played a vital role in gold and silver. I remember how my longtime friend and silver mentor, Izzy Friedman, more than 40 years ago, as he was deciding whether to make a major investment in silver in the mid-1970’s, actually flew to India to see for himself if the stories of great silver hoards about to flood the market should prices move higher (from $4 or $5) were true. Izzy saw plenty of silver, but none so closely held in large concentrated quantities to pose a market threat. I believe that’s still the case today.

Indian gold and silver buyers are quite price-sensitive and unlike the typical buyer in the West, Indians tend to buy more when prices are low and less when prices are high. Gold and silver flows into India are one-way affairs – what flows in stays there, never to leave the sub- continent. Gold prices are closer to the highest they have been over the past 5 or 6 years, while silver prices are closer to the lowest they have been over that period, resulting in the silver/gold price ratio widening out to the highest it has been in 25 years. I reviewed the import data from India over the past 15 years with that in mind. For silver, I relied on the Silver Institute’s World Survey and for gold, a straight Google search for Indian imports from 2004 to 2018.

Here’s what I found. The people of India, according to the import data, are buying more silver relative to gold than ever before. It’s not that gold imports are down sharply, it’s much more that silver imports are up sharply. I broke the data from the past 15 years into two segments – the 9 years from 2004 to 2012 and the six years from 2013 to 2018. As a reminder, by comparing the imports of gold and silver on a per ounce basis, all outside influences are neutralized, like currency and overall economic conditions. For instance, the great Indian demonetization of 2016, resulted in sharp declines in the imports of both gold and silver. That’s the objective beauty of making like-kind comparisons – it filters out peripheral issues.

For the 9 years 2004 to 2012, the silver/gold price ratio averaged 56 to 1 and India imported an average of 26.5 million ounces of gold and 85 million ounces of silver each year – or 3.2 times more ounces of silver than gold. Over the next 6 years 2013 to 2018, the silver/gold price ratio widened out to 73 to 1, with silver getting progressively cheaper relative to gold (except in 2016). Over the most recent six years, gold imports fell slightly to an average annual 25.2 million oz, while silver imports surged to 188 million oz annually, up 120% over the yearly average of the prior 9 years. Where imports of silver compared to gold in ounces were 3.2 times from 2004 to 2012, they jumped to 7.5 times from 2013 to 2018.

In the most recent full year of import data, 2018, India imported 24.4 million ounces of gold, the second lowest amount in 9 years, while silver imports were 224 million ounces, the second highest total in 15 years. The amount of silver ounces imported to India last year was more than 9 times the amount of gold imported, the highest level ever. The average silver/gold price ratio for 2018 was 82 to 1, the cheapest silver had been to gold in 15 years, so it’s not surprising that Indian buyers reacted as they did. Of course, while full year data is not available for 2019, the silver/gold price ratio has averaged 86 to 1 year to date, with very recent readings of 90 to 1.

Considering that the silver/gold price ratio has continued to widen out since 2018, exceeding 90 to 1, making silver even cheaper compared to gold, there is every reason to expect that India’s imports of silver have continued to grow, both on an absolute and relative basis compared to gold. What this means, aside from confirming the price-sensitivity (and good sense) of the Indian buyer, is that prices do have consequences. It’s often said that the cure for low prices is low prices because low prices discourage production and encourage demand. The record of India’s silver imports would seem to be clear confirmation of that.

The main price consequence of the surge in silver imports to India is as a direct result of the COMEX price suppression and manipulation of the price. The collective investment reaction in the US and West to the low price of silver (or any investment asset) is not to buy – that’s our investment culture, for better or worse. The collective reaction in India is markedly different and in a very real sense is the ultimate confirmation that silver prices have been manipulated; as what else could prove more conclusively that silver prices were artificially suppressed than the surge in demand from India?

In fact, had there been no surge in demand from India, that would be proof silver wasn’t manipulated in price. What else could possibly explain the surge in silver demand from tens of millions of Indian buyers if not that they felt prices were depressed – not just on an absolute basis, but relative to gold as well? I’m not suggesting that the many millions of Indian buyers are at all aware of the COMEX price manipulation; they just know that silver is unusually cheap and undervalued relative to gold.

So here we have compelling new proof that silver prices have been manipulated – not that more proof was needed. By depressing the price of silver, JPMorgan may have succeeded in discouraging western investment demand and cornering the physical market for its own accumulation, but has also inadvertently stimulated Indian demand. As a result, a brand new Catch-22 has emerged in silver. As and when JPMorgan decides to let silver prices fly to the upside, it is reasonable to assume that Indian demand would fall off, but as that demand falls off, the higher prices will jumpstart western demand. If the right hand doesn’t get you, then the left hand will. Should JPM choose to prolong the silver price suppression, the imports to India should continue to surge and with the concurrent decline in world silver mine production, a physical crunch becomes inevitable. Prices do have consequences. – Ted Butler

-END-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

end
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: 6.9267/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.9374   /shanghai bourse CLOSED UP 2.54 POINTS OR 0.09%

HANG SANG CLOSED UP 271,61 POINTS OR 1.00%

2. Nikkei closed DOWN 151.79 POINTS OR 0.72%

3. Europe stocks OPENED GREEN/

USA dollar index UP TO 97.69/Euro FALLS TO 1.1191

3b Japan 10 year bond yield: FALLS TO. –.12/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.24/ 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:: 51.89 and Brent: 60.75

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.32%/Italian 10 yr bond yield DOWN to 2.12% /SPAIN 10 YR BOND YIELD DOWN TO 0.42%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.44: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield RISES TO : 2.52

3k Gold at $1350.70 silver at: 14.97   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 6/100 in roubles/dollar) 64.25

3m oil into the 51 dollar handle for WTI and 60 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 108.34 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 .9993 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1182 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 0.32%

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 2.02% early this morning. Thirty year rate at 2.52%

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

6.  TURKISH LIRA:  UP  TO 5.8358..

Draghi Unleashes Global Chaos With Preview Of More Stimulus, Prompts Angry Response From Trump

It was shaping up as a slow, boring session with everyone waiting “patiently” for the Fed tomorrow, until right after the European open, when two years after Mario Draghi first laid out the blueprints for the ECB’s rate normalization with a speech about the Eurozone’s “strengthening and broadening recovery” at the ECB’s Sintra forum in 2017, the ECB president finally threw in the towel and said that if the outlook doesn’t improve and inflation doesn’t strengthen, “additional stimulus will be required” adding that the ECB can amend its forward guidance, that rate cuts remain “part of our tools” and asset purchases are also an option. In short, full dovish capitulation by the ECB chief, which in a market addicted to monetary stimulus, was just what the bulls needed to hear.

The news sent global stocks surging…

… the Stoxx 600 rebounding from a loss to a gain of over 1%…

… S&P futures up 14 points, and back over 2,900…

… the German 10Y Bund yield tumbling to an all time record low below -0.30%...

Amusingly, Draghi’s somewhat striking admission of defeat, prompted an immediate response from none other than the US president, who tweeted “Mario Draghi just announced more stimulus could come, which immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA. They have been getting away with this for years, along with China and others”…

Donald J. Trump

@realDonaldTrump

Mario Draghi just announced more stimulus could come, which immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA. They have been getting away with this for years, along with China and others.

… then immediately followed by “European Markets rose on comments (unfair to U.S.) made today by Mario D!”

Donald J. Trump

@realDonaldTrump

European Markets rose on comments (unfair to U.S.) made today by Mario D!

This in turn served to push the Euro slightly higher, recovering some of its losses, as Trump’s warning was interpreted as a threat of more Eurozone tariffs, or alternatively, more pressure on the Fed to cut rates…

… as the final race to the bottom emerges, and looks as follows:

  1. ECB unveils more easing
  2. Trump threatens ECB, responds with Eurozone tariffs
  3. ECB unveils even more easing

So with all these fireworks taking place in just a few short hours, what else happened?

Well, earlier, Japan’s Topix slipped, even as most Asian gauges rose. With European sovereign bonds soaring, led by Italy and Greece, while the Swedish and Austrian 10Y yield dropped below 0% for the first time, as fuel was added to the fire by a report that investor confidence in Germany’s economic outlook worsened dramatically in June…

… US 10Y Yields plunged to new lows, and just 3.2bps away from a 1-handle!

Of course, Draghi isn’t even the main event. Traders were far more focused on what the Federal Reserve announces on Wednesday to see whether Chairman Jerome Powell and his colleagues will validate widespread expectations for interest-rate cuts. The ECB’s announcement may just have changed the calculus.

In currencies, the Bloomberg Dollar Spot Index erased declines as the euro first fell below $1.12, then rebounded above it. Money markets are pricing in a 10bps cut by December from the European Central Bank after President Mario Draghi emphasized the need for stimulus. The kiwi dollar led gains in the Group-of-10 currencies, while the yen was boosted from demand versus the Aussie after RBA’s latest minutes showed more easing is likely

In commodities, oil dropped, with OPEC nations still unable to agree on a date for their next meeting, adding to uncertainty over whether production cuts would be extended.

Expected data include housing starts and building permits. Adobe is among companies reporting earnings

Market Snapshot

  • S&P 500 futures up 0.5% to 2,911.00
  • STOXX Europe 600 up 0.6% to 380.85
  • MXAP up 0.3% to 154.95
  • MXAPJ up 0.6% to 507.49
  • Nikkei down 0.7% to 20,972.71
  • Topix down 0.7% to 1,528.67
  • Hang Seng Index up 1% to 27,498.77
  • Shanghai Composite up 0.09% to 2,890.16
  • Sensex up 0.4% to 39,102.96
  • Australia S&P/ASX 200 up 0.6% to 6,570.00
  • Kospi up 0.4% to 2,098.71
  • German 10Y yield fell 5.0 bps to -0.294%
  • Euro down 0.2% to $1.1191
  • Italian 10Y yield fell 4.8 bps to 1.933%
  • Spanish 10Y yield fell 6.8 bps to 0.458%
  • Brent futures down 0.7% to $60.54/bbl
  • Gold spot up 0.4% to $1,345.06
  • U.S. Dollar Index up 0.1% to 97.68

Top Headline News from Bloomberg

  • ECB’s Draghi said if the outlook doesn’t improve, and inflation doesn’t strengthen, “additional stimulus will be required.” He noted that the ECB can amend its forward guidance, that rate cuts remain “part of our tools” and asset purchases are also an option. He was speaking at the ECB’s annual forum in Sintra, Portugal
  • Bond investors are preparing for another wave of QE from the ECB by returning to some of their favorite post-crisis trades. First up: buy the debt of nations such as France that have greater scope for purchases by the ECB. Next, bet on a drop in longer-maturity yields relative to near-term rates. Then go for higher-returning bonds, like Spain and Italy
  • Investor confidence in Germany’s economic outlook worsened dramatically in June after the Bundesbank predicted the economy will shrink this quarter. An index measuring prospects for the next six months fell to -21.1 in June, a far worse reading than the -5.6 economists expected
  • President Donald Trump’s top trade envoy Robert Lighthizer will be in the congressional hot seat for two days this week, giving lawmakers the chance to grill him about the prospects for a deal with China, as well as various punitive measures threatened by his boss
  • Hong Kong leader Carrie Lam personally apologized for backing a bill that would allow extraditions to China for the first time, her latest move to try and defuse protests that have rocked the city
  • Australia’s central bank is likely to lower interest rates again to drive increased hiring and boost households’ confidence that inflation will return to target. RBA says further rate cut ‘more likely than not’ in period ahead
  • China cut its U.S. Treasury holdings to the lowest in almost two years as the months-long trade conflict dragged on between the world’s two largest economies. The nation’s holdings of notes, bills and bonds declined by $7.5 billion in April to $1.11 trillion, according to Treasury Department data released on Monday
  • Rory Stewart, the rank outsider in the contest to become Britain’s next leader, is suddenly winning support and giving his bigger-name rivals a reason to worry. Officials working for three better-known contenders privately said they believed Stewart could deliver a major upset in the Conservative Party leadership votes this week
  • The U.K. economy will probably flatline in the second quarter and the Bank of England won’t raise interest rates until well into next year, according to a Bloomberg survey

Asian equity markets mostly saw cautious gains ahead of this week’s key risk events and following the marginal gains in the US where trade was otherwise uneventful aside from the strength in tech and telecoms. ASX 200 (+0.6%) and Nikkei 225 (-0.7%) were mixed with Australia led higher by tech and commodity related sectors, in which government plans to introduce a AUD 158bln income tax cut package, as well as anticipation for further RBA policy easing, added to the optimism. Tokyo sentiment was hampered by a firmer currency. Hang Seng (+1.0%) outperformed as business returned to normal following the recent protests and the Shanghai Comp. (+0.1%) was indecisive despite continued PBoC liquidity efforts, as trade uncertainty lingered after economic regulators refused to rule out using rare earths in the trade dispute and the Global Times Editor suggested the potential for a protracted trade war. Finally, 10yr JGBs initially traded steady amid the indecisiveness in the region but were later supported as sentiment in Japan further deteriorated and after the 5yr auction results showed a decline in yields and higher accepted prices from the prior month.

Top Asian News

  • China Cuts Treasury Holdings to Two-Year Low Amid Trade War
  • China’s Trade War Has Investors Flocking to Consumer Stocks
  • Metro Pacific Said Preparing to Start $2 Billion Hospital Sale

European equities are higher across the board [Eurostoxx 50 +1.2%] as the region was bolstered by a dovish Draghi. The DAX (+1.2%) is now back above the 12k level after having visited a pre-Draghi low of 11,986, albeit gains are somewhat limited by a subdued IT sector, meanwhile, the FTSE 100 lags as the index fails to benefit from Draghi’s speech. In terms of sectors, financial names underperform amid the prolongation of negative rates. Defensive sectors are outperforming with healthcare and utilities the standout outperformers.  Movers to the downside today include chipmakers following a profit warning from Siltronic (-13.0%) , citing US-China trade issues. The downbeat market outlook spilled onto STMicroelectronics (-2.0%), ASML (-1.2%) and Infineon (-5.7%), albeit the latter is more influenced by the launch of a capital increase to fund the Cypress Semiconductor acquisition. Finally, Lufthansa shares rest near the foot of the Stoxx 600 following three separate broker downgrades.

Top European News

  • Canary Wharf Group Is Said in Talks to Buy CapCo’s Earls Court
  • Tieto to Buy Evry for $1.5 Billion in Nordic Software Tie- Up
  • German Highway Toll Ruled Illegal and Discriminatory by EU Court
  • Weidmann Waits as Merkel’s Candidate for Juncker Job Falters

In currencies, The EUR currency has slumped to the bottom of the G10 pile and even below the Aussie that was hit overnight by RBA minutes flagging further easing on the basis that benign inflation and wage trends are likely to persist for even longer. In similar vein, ECB President Draghi used the stage at Sintra to deliver a much more dovish/downbeat assessment of price developments and all but signalled another tweak to official guidance at the next policy meeting, if not further stimulus. In short, he acknowledged the recent pronounced drop in inflation expectations and said the GC will look at measures to counter the severity of risks to price severity in coming weeks, and if the situation fails to improve more stimulus will be needed. Eur/Usd has reversed from circa 1.1240 to just over 1.1180 and through 2.1 bn option expiries between 1.1195-1.1205 that may yet influence direction into the NY cut, while Eur/Gbp has pulled back sharply from around 0.8975 to 0.8925. Back down under, Aud/Usd is hovering off 0.6832 lows and Aud/Nzd has reversed towards 1.0500 as the Kiwi keeps tabs on the 0.6500 handle vs its US counterpart ahead of the latest GDT auction and NZ Q1 current account data.

  • CAD/CHF/GBP – All weaker vs the Greenback and partly in sympathy with the Euro and Aussie, but the Loonie also had more negative Chinese-Canadian headlines to digest as Beijing suspended pork imports pending closer inspection of the product. Meanwhile, the Franc slipped through parity, but strengthened in Eur/Chf cross terms to 1.1175 at one stage and will do doubt arouse SNB attention given that the ECB seems to be on the brink of easing further (-10 bp now priced in for December). Elsewhere, Cable is now eyeing 1.2500 and very early January lows after breaching key support at 1.2560, with the next leg of the Tory leadership race looming before UK CPI, retail sales and the BoE unfolds tomorrow and Thursday.
  • JPY/NOK/SEK – The major outperformers, as the Yen regains a safe-haven bid to retest support ahead of 108.00, while the Scandi Crowns benefit from single currency weakness and ECB-Norges Bank/Riksbank policy divergence given a widely expected hike from the former on Thursday. Moreover, the Sek derived some traction from a cautiously upbeat Riksbank business survey and significantly improved 2019 budget surplus forecasts from the SNDO. Eur/Nok around 9.7780 vs 9.8170 at one stage and Eur/Sek holding within a 10.6484-6147 range.
  • EM – Although the Buck has rebounded firmly, if not quite uniformly as noted above (back over 97.500), the Lira has maintained recovery momentum with the aid of some rare constructive comments on the US-Turkey front and reports that talks about the S-400 deal will be held at NATO next week. Usd/Try trading near the base of a 5.8225-8777 band.

In commodities, WTI and Brent futures are lower on the day with the former just above the USD 51.50/bbl level whilst the latter hovers around the USD 60.50/bbl mark. News-flow for the complex was largely surrounding OPEC this morning, with WSJ noting that Saudi intends to push for tighter compliance to OPEC production curbs. Sources also stated that the renewed pact would see the under-complying countries reducing crude supply by 300-400k BPD. In terms of a date, IFX reported that Moscow has reportedly agreed to consider an OPEC+ meeting on July 12th, postponed from the scheduled June 25/26. Looking ahead, traders will be keeping an eye on tonight API inventory release with the street looking for a draw of around 1.75mln barrels. Elsewhere, gold is hovering near intraday highs amid a bout of demand for the safe haven asset. Meanwhile, copper prices are supported despite the underlying risk off tone in the market as Glencore has shut down its Mufulira copper smelter at its Mopani copper mine in Zambia whilst Chile’s Codelco said the Chuquicamata copper mine maintained output capacity at 50% due to the 4th full day of a union strike.

US Event Calendar

  • 8:30am: Housing Starts, est. 1.24m, prior 1.24m; MoM, est. 0.4%, prior 5.7%
  • 8:30am: Building Permits, est. 1.29m, prior 1.3m; MoM, est. 0.23%, prior 0.6%

DB’s Jim Reid concludes the overnight wrap

I’m still in NY and last night I FaceTimed home to find there had been a big furniture delivery. No, not for our new house, but for my daughter’s new dolls house. I bought what I thought was a very good value but nice one only to find that the real money has to be spent furnishing it. It comes completely undecorated and bare. I had a bit of a shock when I saw how much all the trappings to go inside cost. So yesterday a four poster bed, a dining table and various kitchen appliances arrived. Then we spent most of the rest of the conversation debating whether we should also buy dolls house wallpaper! There is part of me that wondered whether I imagined this conversation in some kind of surreal jet lag haze but alas it was only too real.

It was a bit of a sleepy first day of the new week for markets yesterday with fairly minimal news flow to trade off. The good news, however, is that we’ve got a full day of the ECB Forum in Sintra ahead of us and today’s agenda includes an introductory speech from Draghi this morning, comments from various ECB officials including Guindos, Praet, Lane and Coeure, and then a policy panel featuring Draghi, the BoE’s Carney and former Fed Vice Chair Fischer this afternoon. It remains to be seen what will come of the Forum; however, as we mentioned yesterday, we have seen markets move sharply in previous years following comments that emerged from Sintra and with there being plenty of chatter about potentially more stimulus coming from the ECB, it’s worth watching it closely. In his opening remarks last night, Draghi declined to discuss policy or the current outlook, instead keeping his comments focused on the conference and on introducing Olivier Blanchard, who used his keynote address to argue for greater use of fiscal policy in the next downturn; an unusual topic for a central banking conference!

Ahead of the conference yesterday, comments from the ECB’s Coeure attracted a bit of attention following an interview with the FT. Coeure highlighted the dilemma the ECB faces with market pricing, saying that the ECB should neither ignore it nor blindly follow it. Most notably, Coeure said the costs associated with easing policy should not deter the ECB from acting – while also going on to mention rate cuts and the impact of NIRP on banks. In addition to those potential tools, he cited QE and forward guidance as other options. Coeure acknowledged the existing limits on bond-buying, but emphasized that the limits were chosen by the ECB, not by the ECJ or some other outside force, thus hinting that they could be modified. In a similar vein to Blanchard last night, he hinted at the frustration at the lack of fiscal policy from those that could potentially do it. This lack of action might force the ECB to do more in the future, which in turn would magnify the potential lower for longer problem.

With the exception of BTPs – which rallied -4.8bps on minimal news – bond markets were slightly weaker yesterday with 10y Bunds up +1.2bps in yield to the lofty heights off -0.247%. Similarly, Treasuries were +1.4bps higher although they did see a slight rally on the back of a shockingly weak empire manufacturing reading – the biggest monthly decline ever in fact. We’ll have more on that below. That being said, equity markets didn’t appear too fussed with the NASDAQ leading the charge following a +0.62% bounce. FANGS led the way with the NYSE FANG index up +1.75%, though the Philly semiconductor index retreated -0.64%, as cyclical sectors more broadly underperformed. Banks retreated -1.00% and the DOW transports index fell -1.03%. Elsewhere, the S&P 500 (+0.09%) and the STOXX 600 (-0.09%) were both little changed. HY credit spreads were -2bps tighter in the US, while the dollar traded flat. EM currencies were flat as well, while EM equities fell -0.36%.

This morning in Asia markets have mostly followed the lead from Wall Street; however, the exception is the Nikkei, which is down -0.70% after BoJ Governor Kuroda said that the “risks to the global economy are tilted to the downside”. A reminder that the BoJ meeting is this Thursday. Elsewhere the Hang Seng (+0.73%), Kospi (+0.38%) and Shanghai Comp (+0.08%) are all up. In other news, Chinese holding of US Treasuries are continuing to decline with the US Treasury Department data released yesterday highlighting that China’s holdings of US notes, bills and bonds declined by $7.5bn in April to $1.1tn, the lowest since June 2017.

Staying with Asia, yesterday news also broke that President Xi will travel to North Korea on June 20-21, the first time a Chinese leader has made the trip in 14 years. It is possible that North Korea talks are another arena of the US-China confrontation, so developments there could reverberate back onto the tariff war. Separately, Chinese tech giant Huawei said that the new Western sanctions will cost them around $30bn this year and next, as they anticipate 40-60mn fewer smartphone sales this year. While many countries have not joined the US in sanctioning the company, the threat and uncertainty surrounding the firm is enough for many major wireless providers to opt not to carry Huawei’s newest phone model. This was the first time that the company quantified the impact of the US’s sanctions, and the new information was worse than expected.

Also on the trade front, it’s worth keeping an eye on any headlines that could potentially emerge from US Trade Representative Lighthizer’s testimony before Congress today. While the aim of the testimony is to campaign to get Congress to approve the US-Mexico-Canada trade agreement, there’s a reasonable chance that US-China trade issues also get brought up. So that should be worth a watch.

While we’re on politics, here in the UK we’ve also got the second Conservative Party leadership ballot. The cut-off for this round is 33 votes. Unsurprisingly, Johnson remains the front runner following the first round and since then we’ve seen him pick up further support, including that of Health Secretary Matt Hancock – a former contender. While we’re on UK politics, Bloomberg has reported overnight that the UK Chancellor Philip Hammond might leave the government over PM May’s plans to commit nearly £27bn in spending on education over the next three years as this will likely limit the ability of PM May’s successor. Sterling has faded slightly on the back of the story.

Back to the data yesterday and specifically that empire manufacturing print in the US where the -8.6 reading was not only well below consensus for +11.0 , but also marked a drop of -26.4pts from the May reading, which is the biggest ever monthly change based on data going back to 2001. The outright monthly reading is also the lowest since October 2016 and it’s worth noting that this is the first regional Fed survey that usually helps to inform the ISM. The details didn’t make for much better reading, with new orders also down sharply and into negative territory along with employment. So worth watching how other survey data plays out in light of this very soft reading, which will raise concerns about further deterioration in the ISM. Our US economists cited the deterioration in sentiment as a key factor when they downgraded their US growth forecast last week (link ), with the bulk of the -0.4pp revision to 2019 growth coming from reduced capex activity.

As for the other data, the US NAHB housing market index slid -2pts to 64, its first decline of the year. That’s still near its recent cyclical highs. Homebuilder stocks retreated -0.52%, though they actually remain within a percent of their highest levels in a year. In Europe, labour costs rose 2.4% yoy in the first quarter, a 0.1pp acceleration from last quarter. That provides some evidence of tightening labour markets feeding through to wages, albeit gradually.

Looking at the rest of the day ahead, this morning we get the April trade balance and the final May CPI revisions for the Euro Area, as well as the June ZEW survey in Germany, which is expected to deteriorate from the May levels. In the US, we’ve got May housing starts and building permits data. The big event today though is the aforementioned ECB forum in Sintra. Meanwhile, the second ballot in the UK Conservative Leadership Party contest will take place today, while US Trade Representative Lighthizer is due to testify in Congress.

3A/ASIAN AFFAIRS

I)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED UP 2.54 POINTS OR 0.09%  //Hang Sang CLOSED UP 271.61 POINTS OR 1.00%   /The Nikkei closed DOWN 151.29 POINTS OR 0.72%//Australia’s all ordinaires CLOSED DOWN .58%

/Chinese yuan (ONSHORE) closed DOWN  at 6.9267 /Oil DOWN TO 5189 dollars per barrel for WTI and 60.75 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.9267 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.9374 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

b) REPORT ON JAPAN

3c China/Chinese affairs

i)China

China is set to roll out its new rare earth policy as soon as next week and it will be restrictive

(courtesy zerohedge)

China To Roll Out New Rare Earth Policy As Soon As G-20 Meeting

Amid the ongoing trade war with the US, consultations between China’s National Development and Reform Commission (NDRC) and rare earth industry executives have laid the groundwork for limiting rare-earth element (REE) exports.

During a Monday press conference, the Chinese NDRC said it was developing new state policies on rare earth metals, and intends to make them public as soon as possible.

According to Deutsche Bank, the key conclusion from the recent meetings is that Chinese authorities are preparing to limit shipments of rare-earth permanent magnets in addition to rare-earth elements, thereby closing off what was termed an  “escape route” by the Global Times. Beijing’s veiled threats to restrict exports of rare earth metals to the US have been called by many as one of China’s nuclear options in a trade conflict with Washington. The US relies on China for about 80 percent of its rare earths supplies. The metals are used in everything from electric car motors and electronics to oil refining.

This corroborates the widespread assessment that REE exports are hardly the only outlet for such strategic materials. In order for China to more effectively leverage its strategic position, downstream products will also be included. The dollar value of US imports of two key categories of downstream product, NdFeB and SmCo magnets, is larger than the total imports of REEs from China.

A second key conclusion, according to Deutsche Bank’s Michael Hsueh, reflected the idea that traceability and illegal mining must be considered as possible circumvention modes. Traceability was tagged by the Ministry of Industry and Information Technology (MIIT) as an objective in January, along with suspension of licenses for companies violating limits. While China has yet to provide a description of the tracing technology, traceability would be doubly helpful in preventing the use of illegally mined materials domestically and enforcing any export ban. Illegal production was estimated at 40-50 kt in rare-earth oxides in 2015, compared to official output of 105kt that year.

As a reminder, the June 4-5 symposium between the NDRC and officials from key production regions resulted in recommendations to:

  1. broaden, deepen and advance development of the rare earth materials industry,
  2. study suggestions from local levels for innovation,
  3. tighten total output control and crackdown on illegal activities,
  4. strengthen export management with a traceability and review mechanism, and
  5. improve protection of intellectual property in the rare earth industry.

What happens next?

In terms of timing, Deutsche believes that a post-G20 escalation of the trade conflict would likely be required for China to enact any export ban. From China’s point of view, the ideal scenario would preferably involve a short period of export limits. Without the assurance of sustainably high prices, the rest of world is more likely to remain cost challenged and deficient in investment. In this regard, the ability to engineer rapid price declines is just as much of a ‘weapon’ as price spikes. To the extent that ex-China investment was hampered by the decline in prices after 2011, this suggests  ex-China incentive costs are likely above the USD 40/t level for PrNd oxide.

END

Beijing slams Washington’s latest feeble attempt to set up a Trump -Xi meeting\\

(courtesy zerohedge)

4/EUROPEAN AFFAIRS

i)EUROPE/USA/AIRBUS/BOEING

I would say that Boeing is in a heap of trouble.  On the first day of the big PARIS Air Show:  the orders:  Airbus 13 billion dollars worth of planes: Boeing zero

(zerohedge)

 

It’s Airbus $13,000,000,000 – Boeing 0, On The First Day Of The Paris Air Show

As the jarring truth about Boeing’s “cost-cutting above all” philosophy involving the company’s deadly, ill-fated 737 MAX  (or whatever the company’s ill-fated plane may be called soon) receives an ever-wider public appreciation, the company is finding it increasingly difficult to do business as usual.

Take the Paris Air Show, traditionally the venue where the world’s largest aircraft makers lock in deals worth tens of billions of dollars. Well, the first day of the 2019 edition of this boondoggle couldn’t have gone any worse for Boeing, and alternatively it couldn’t have been better for Airbus, which locked in $13 billion in orders for new jets.

Boeing’s tally? $0.

Among those lining up to order Europe’s iconic (if subsidized) airlines included Air Lease Corp., the giant US leasing company, which agreed to buy planes worth $11 billion before customary discounts, including the new A321XLR. Virgin Atlantic also bought eight A330 wide-bodies with options for six more.

And that’s just the beginning: according to Airbus CEO Guillaume Faury, “there’s room to run up the score”, as Bloomberg reports, and with good reason: while Boeing is scrambling to drag the name of its workhorse 737 Max out of the mud as it languishes on the tarmac – literally – after it was idled indefinitely in March after two deadly crashes, Airbus said it was seeing “very strong demand” for its rival A320 family of single-aisle jets.

“As far as we are concerned, you should expect a very positive Paris Air Show with a lot of orders,” Faury said in an interview with Bloomberg Television. Boeing… not so much.

Which is ironic, because just one year ago, the tables were turned. Back then, Airbus, having just gone through a jarring management transition – fallout from a multi-year bribery investigation – announced 431 orders valued at $62 billion at the alternating Farnborough air show in the U.K. That lagged Boeing’s commitments for 528 jetliners valued at $79 billion through the week last year.

Of course, most of the Boeing buyers are now considering whether to cancel their orders depending on what the fate of the MAX will be.

So it is now Airbus’ moment in the sun: according to Bloomberg, “the Air Lease order in particular provided a vote of confidence in the A321XLR, a twin-engine jet that can travel 4,700 nautical miles, more than any other narrow-body on the market. The plane is positioned as a more fuel-efficient successor to Boeing’s discontinued 757, able to connect smaller cities that can’t support service by big wide-body jets.”

The model is also meant to take the wind out of the sails of Boeing’s planned “new midmarket airplane,” or NMA. That jet, dubbed the 797 by analysts, is on hold while the Chicago-based company works through the Max crisis. Airbus’s decision to start sales of the XLR could help sway customers who had been looking at both options.

Airbus’s Air Lease deal also included the A220 plane that the Toulouse, France-based company acquired last year from Canada’s Bombardier Inc. and has been marketing harder, providing a further fillip.

Defiant, Boeing CEO Dennis Muilenburg, gave no ground on either the Max or the NMA, saying that the former will return to service before the end of 2019 and remain the backbone of the company’s short-haul strategy for years to come, in a Bloomberg Television interview. He may be overly optimistic if the best strategy Boeing can come up with is rebranding the plane in hopes of putting its troubles away.

As we reported earlier, CFO Greg Smith said – in all seriousness – that the Max’s branding could be dropped depending on an assessment of consumer and airline sentiment. Perhaps observing the uniform derision that greeted the news, Boeing emphasized in a subsequent statement that it had no immediate plans for a name change.

But if the first day was bad, the final airshow total will be devastating for Boeing. According to aviation consultancy IBA Group, firm and outline orders will total 575 planes, with 435 going to Airbus. That would compare with close to 1,000 at Farnborough.

“Like Farnborough 2018, the Paris Air Show started relatively slowly,” Morris said, suggesting Monday’s action would be eclipsed in coming days. “Perhaps the fashion is now for Day 3 to be the high-water mark.”

Which begs the question: yes, buyers may be recoiling at the thought of buying a Boeing, so to speak, but just how much of a global collapse is there in aircraft demand right now, and is that an indicator that the global recession has – as Morgan Stanley mused earlier today – indeed arrived?

END

ECB

Draghi clears the way for another round of stimulus which sends gold higher, the euro southbound.  Yields all around the world collapse

(courtesy zerohedge)

Euro, Bund Yields Slide, Stocks Rebound As Draghi Clears Way For More Stimulus

We’re amazed that anybody could still be surprised that the European Central Bank might be heading toward more stimulus, particularly after Mario Draghi’s “whatever it takes 2.0” comment earlier this year, but nevertheless, the euro sank and markets shifted into a decidedly more risk-on mode after the outgoing central bank president said during the ECB’s annual conference in Sintra, Portugal that interest-rate cuts are part of the central bank’s “toolkit,” and asset purchases are also an option.

Draghi

Italian bonds extended gains, outperforming other peripheral peers, while the yield on the 10-year German bund fell to a fresh asll-time low, in response to Draghi’s remarks. The European Stoxx 600 Index erased earlier declines of as much as 0.5% to rise 0.4%, and the euro erased earlier gains. S&P 500 futures extend gains to a session high at 0.3%, tracking European shares.

bund

Banking stocks were the largest decliners, while miners outperformed.

Draghi said risk outlook “remains tilted to the downside,” and that more stimulus will be needed if the outlook doesn’t improve. More interest-rate cuts and more QE are part of the central bank’s arsenal, Draghi said.

“The prolongation of risks has weighed on exports and in particular on manufacturing. In the absence of improvement, such that the sustained return of inflation to our aim is threatened, additional stimulus will be required.”

And the central bank will do whatever it feels is necessary to live up to its mandate.

“The (European) Treaty requires that our actions are both necessary and proportionate to fulfil our mandate and achieve our objective, which implies that the limits we establish on our tools are specific to the contingencies we face. If the crisis has shown anything, it is that we will use all the flexibility within our mandate to fulfill our mandate – and we will do so again to answer any challenges to price stability in the future,” Draghi said.

In an example of central bankers speaking gibberish to sound sophisticated, Draghi added that the ECB is able to enhance forward guidance by “adjusting its bias and its conditionality to account for variations in the adjustment path of inflation.”

Draghi said risks from geopolitical factors, protectionism and vulnerabilities in emerging markets have not dissipated and are weighing on the Continent’s manufacturing industry. Major central banks around the world have taken a dovish turn since the start of the year, with many blaming the drop in global trade. Later this week, both the Fed and BoJ will meet, and, with markets pricing in ever-greater chances of a Fed rate cut that some believe could arrive as soon as Wednesday.

To underscore Draghi’s point, Germany’s ZEW investor expectations index tumbled to -21.1, far below the estimate of -5.6, a sign that sentiment continues to deteriorate.

END

Fascinating, the greatest manipulator of the them all, the USA/President Trump accuses Draghi /EU of manipulating the euro.

(courtesy zero hedge)

In Unprecedented Attack, Trump Accuses Draghi Of Manipulating Euro 

Update: Trump isn’t letting this go, and is now attacking Draghi because European stock markets rallied on Draghi’s stimulus remarks, which isn’t “fair” for the US.

Donald J. Trump

@realDonaldTrump

European Markets rose on comments (unfair to U.S.) made today by Mario D!

Now, how long will it take for Trump to tweet about bund yields at new all-time (negative) lows?

* * *

President Trump wasn’t thrilled by this morning’s selloff in the euro, and for the first time, is lashing out at ECB chief Mario Draghi, accusing him in a tweet of intentionally manipulating the value of the shared currency with his stimulus talk.

Donald J. Trump

@realDonaldTrump

Mario Draghi just announced more stimulus could come, which immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA. They have been getting away with this for years, along with China and others.

Earlier, Mario Draghi sent the euro tumbling and German yields to record lows when he said that rate cuts or more asset purchases could be part of the central bank’s toolkit for fending off a recession.

Jerome Powell might be breathing a sigh of relief now that another central banker has, at least temporarily, taken his place in Trump’s cross hairs. However, we would urge him to wait for the inevitable part II later this week, where Trump slams the Fed for not cutting rates or being sufficiently dovish during this week’s meeting, which would have the added benefit of weakening the dollar, or part III, where Trump announces that he’s retaliating by moving ahead with those auto tariffs (or perhaps Mexico-style blanket tariffs), sparking a trade war with the EU and Japan (even though the administration had earlier kicked the can 6 months down the road).

In theory, of course, this could risk setting off a vicious cycle.

zerohedge@zerohedge

The final race to the bottom:
1. ECB unveils more easing
2. Trump threatens ECB, responds with Eurozone tariffs
3. ECB unveils even more easing

One reporter pointed out the irony of Draghi blaming Trump’s trade war for the ECB’s decidedly more dovish stance, then Trump attacking Draghi over it.

Katie Martin

@katie_martin_fx

So, Trump hits the economic outlook, forcing Draghi to consider more stimulus, and then Trump accuses Draghi of manipulating the currency. Have I got this right?

The euro spiked following Trump’s tweet.

EUR

END
ITALY/ITALIAN BANKS
My goodness:  Unicredit Italy’s largest bank plus 4 other smaller Italian banks have conspired to rip off customers in a flagrant diamond selling scheme whereby diamonds are sold for double or triple their true worth
(courtesy zerohedge)

Italian Banks Conspired To Rip Off Customers With Outrageous Diamond-Selling Scheme

Picture this: A group of corrupt banks get together with several similarly corrupt brokers and other parties, and collude to convince the investing public that a  given asset is not only a “safe” investment, but that it’s also worth far more than investors would ever be willing to pay under ideal market circumstances. They accomplish this by colluding to tightly control the flow of information and capital underpinning said market.

Stones

No, we’re not talking about the pernicious marketing of mortgage bonds during the run-up to the financial crisis, though the fraud at the center of one of Europe’s more colorful banking scandals appeared to be just as ruthless, according to a Reuters story about a long-running investigation into a “diamond cartel” set up by several Italian banks and diamond brokers.

At least five Italian banks, and two diamond brokers, have had assets seized in connection with the investigation into fraud, money laundering and other allegations. The entities at the center of the investigation could face greater fines and risk forfeiting seized assets.

The Reuters story offered probably the most comprehensive glimpse yet at a scandal that has been raging since at least 2016.

In a long-running scandal in a sector already tarnished by controversy, Italy’s biggest banks are suspected of colluding with diamond brokers to scam their own customers – allegedly selling them diamonds at vastly inflated prices while marketing them as sound financial investments.

All of the banks, along with a Banco BPM subsidiary, Banca Aletti, are suspected of fraud and money-laundering for using the proceeds to boost profits, according to allegations laid out in the documents used for the seizure order.

Prosecutors also allege that UniCredit and Banco BPM worked out a deal with IDB where, in return for the banks selling IDB’s diamonds, the broker would channel money into their stock, boosting their share capital at a time when it was under pressure from a rising tide of bad debts.

Under Italian law it is deemed to be corruption when one party abuses its commercial position to induce the counter-party to provide it with favors – in this case, the alleged purchase of shares. The IDB officials involved are also under investigation.

According to a criminal lawyer when asked by Reuters, under Italian law, if the banks are charged and convicted, they could be fined millions of euros, risk forfeiting the total of 161 million euros seized from them in February and could even be temporarily suspended from operating by court order.

In Italy, banks have been selling diamonds on behalf of brokers since the 1980s, but they ramped up that business after the global financial crisis, according to prosecutors, when a deep recession left them saddled with soured loans, and a desperate need for more revenue to offset these costs.

Over the last 20 years, more than 100,000 people are estimated to have bought diamonds at Italian banks.

Milan prosecutors believe the banks – which include UniCredit (Italy’s largest bank by assest), and another bank called Banco BPM – teamed up with brokers to sell the stones in blister packs to bank customers, often at more than double their market value, making tens of millions of euros each in commissions. The diamond brokers, meanwhile, made hundreds of millions of euros on the scheme.

Some of the banks have started offering to repurchase the diamonds at the price buyers initially paid, though not all of instituted such a policy.

While we acknowledge that the scheme described above certainly sounds bad, as one Twitter wit pointed out, are these lies and distortions really any worse than selling Italian government bonds?

FxMacro@fxmacro

Italy’s biggest banks are suspected of colluding with diamond brokers to scam their own customers — allegedly selling them diamonds at vastly inflated prices while marketing them as sound financial investments…is this any worse then selling them Italian bonds

Reuters Top News

@Reuters

Exclusive: Banks face new challenges in Italian diamond scandal http://www.reuters.com/article/us-eurozone-banks-italy-diamonds-exclusi-idUSKCN1TI0H5?utm_campaign=trueAnthem%3A+Trending+Content&utm_content=5d079280b1a3150001dd6b27&utm_medium=trueAnthem&utm_source=twitter 

View image on Twitter
END
GERMANY
Early this morning we learn that the all important German economic sentiment (ZEW) plummeted in June. Germany is the powerhouse exporter in Europe and this is a sure sign that things are crumbling in Europe
(courtesy London;s Financial Times)  and a special thank you to Robert H for sending this to us.

German economic sentiment plummets in June — Zew

Trade fears, geopolitical tensions and Brexit weigh on executives’ outlook

A key gauge of expectations for the German economy plummeted in June, as trade fears, geopolitical tensions and Brexit all weighed on financial executives.

The Zew indicator of economic sentiment fell to minus 21.1 this month, dropping 19 points from May and well below expectations of minus 5.9 in a Reuters poll.

“The sharp drop in the Zew Indicator of Economic Sentiment coincides with an increased uncertainty regarding the future development of the global economy and substantially worsened figures for the German economy at the beginning of the second quarter,” said Achim Wambach, president of Zew, a Mannheim-based research house.

“The intensification of the conflict between the US and China, the increased risk of a military conflict in the Middle East and the higher probability of a no-deal Brexit are all casting a shade on the global economic outlook.”

“On top of this, German industry has been reporting worse than expected figures for production, exports and retail sales for April.”

Executives’ views of current conditions also fell, to a score of 7.8, marginally better than analysts had expected.

The euro fell sharply on Tuesday morning, while German government bonds hit a record high, after European Central Bank president Mario Draghi indicated the bank could launch another round of stimulus should the climate of weak growth and political uncertainty fail to lift.

The common currency was recently down 0.3 per cent at $1.1184, while German 10-year Bunds yielded minus 0.3 per cent, down by 0.051 percentage points on the day. Yields fall when prices rise, and negative yields mean new buyers are guaranteed to make a nominal loss if they hold the debt to maturity.

end

GERMANY/DEUTSCHE BANK

Deutsche bank will try anything to get its stock up.  Now they are reports that they might sacrifice its CFO Von Moltke

(courtesy zerohedge)

Deutsche Shares Climb On Reports CFO Von Moltke Might Be Fired

After Deutsche Bank’s announcement that it would follow through on plans to launch a “bad bank” stuffed with toxic assets and long-dated derivatives failed to revive the company’s flagging shares, which tumble to fresh all-time lows seemingly every day now, embattled CEO Christian Sewing is reportedly preparing to make a ritual sacrifice to the finance gods.

JVM

James von Moltke

According to media reports on Tuesday, Sewing is weighing whether to replace CFO James von Moltke and bring in new leadership as the bank prepares to “restructure” its equity and rates trading business outside Europe amid broader cuts to its investment banking operations.

The news provoked a modest bid in DB shares, helping them erase Monday’s losses.

DB

Last night, WSJ reported that one of DB’s senior European bankers, Edward Sankey, is preparing to leave after 15 years at the bank, as cuts to its investment bank “take a toll.” Earlier this week, the bank said it was cancelling its 4% profitability target for 2019, which, like the ‘bad bank’ news, provoked a chorus of guffaws across Wall Street.

At this point, the bank needs to focus on passing the Fed’s next round of stress tests, something DB doesn’t exactly have a great track record of doing. But if DB is found to have failed when the results are released next week, and Sewing brings in a new CFO, at least he’ll have a useful scapegoat in Von Moltke, who was appointed to the role in the Spring of 2017.

end
The following is a critical important commentary that you must read.  Many of you know full well that Deutsche bank is in serious trouble.  They are the world’s largest derivative player and we have long suspected that their derivative book is way off side.  You will also recall that Deutsche bank, unilaterally went to the judge in the gold and silver manipulation case to say that their are guilty of manipulating precious metals and if the court would go easy on them, they will provide copious emails and chat room discussions indicating that DB plus a plethora of other banks were guilty of collusion and manipulation..and they certainly provided the information to the court exactly like they said they would.
Jeffrey Snider believes that Deutsche bank believed that fixed income  (huge derivative plays) would be a winner from 2014 on.  They were wrong and now the bank is in a mess.
please read…
(courtesy Jeffrey Snider)

“Something Just Doesn’t Smell Right” – Is The Big ‘Bad Bank’ Bothering Bonds?

Authored by Jeffrey Snider via Alhambra Investments,

Spitballing In German

Something just doesn’t smell right. As I’ve pointed out over the past few weeks, bill yields have been falling. The front, the 4-week instrument, has seen its equivalent rate plummet. This is consistent with deep liquidity problems as well as looming rate cuts (the two do go hand-in-hand).

Over the past two session, including today, however, bill yields have spiked. No rate cuts, problem solved? Hardly. Bill markets aren’t supposed to behave this way – in either direction. What you see below are positions getting crushed, people taken out on stretchers (to repurpose an old euphemism) for reasons that have nothing directly to do with T-bills.

What follows is more pure speculation on my part, so if that’s not your interest then this mess in bills is already enough to keep anyone busy wondering. Otherwise, I can’t help but figure about that one German bank whose name keeps popping up at these sorts of moments.

The fact that Deutsche Bank is still upright at all might seem evidence to the contrary; in other words, it’s been called a “troubled” bank for many years and no major systemic consequences to this point.

The real problem, in my hypothetical view, is that no one has as yet properly defined “troubled.” For much of those prior years, up until early 2017, DB was obviously in trouble with the US government. Some untoward behavior during the last housing bubble.

After they paid a big fine for it, the matter like the bank was forgotten during globally synchronized growth. And that’s ultimately what grabs my attention – DB’s time on the front pages coincides with eurodollar squeezes. The current one included; including the intensity of Euro$ #4 so far.

I’ve been writing about DB for years. In October 2016, for example, while the DOJ fine was the only explanation put forward you could already tell it was much deeper than that. It’s all but forgotten now, superseded by more insanity, but this one behemoth had actually gotten caught cheating on its stress test – and authorities quite purposefully looked the other way!

As amazing in its deception as that was, the truly appalling nature of it was revealed by the jump in DB’s stock upon opening this week after publication of the affair. In other words, “speculators” (of the non-evil persuasion, apparently) were bidding up the bank because they saw it as an indication that the ECB would surely go to any lengths to rescue it if they were already willing to dilute (fake, in part) the test results meant to calm everyone down.

It’s another sign not just suggesting the twisted nature of central banking but that for Deutsche Bank there really might be something to all this if the European Central Bank would go this far in perhaps just the early stages.

As we know, ever since liquidity indications turned very serious later last year, German authorities in particular have been unusually keen to marry up DB with some other bank; any other bank, even one almost as “troubled.” Equally conspicuous is how no one seems willing to step up. It’s as if everyone else in the behemoth bank business, a disturbed industry itself, is unwilling to pay even a hugely discounted price for what used to be the crown jewel of Europe’s former paradigm.

Why?

A few clues have appeared once again – coincidentally over just the past few days. The Financial Times, among others, has reported DB is now considering a “bad bank.”

Deutsche Bank is preparing a deep overhaul of its trading operations including the creation of a so-called bad bank to hold tens of billions of euros of assets as chief executive Christian Sewing shifts Germany’s biggest lender away from investment banking…

Deutsche’s equity and rates trading businesses outside continental Europe will be severely shrunk or closed entirely as part of the revamp, although the final decision is pending, according to four people briefed on the plan. Managers are also set to unveil a new focus on transaction banking and private wealth management.

The proposed bad bank, which is known internally as the non-core asset unit, will comprise mainly of long-dated derivatives, the people said. [emphasis added]

Longer-dated derivatives being shrunk and disbanded outside continental Europe? Does that sound like to you what it sounds like to me?

Here’s what I wrote about it in May 2014:

In that framing, DB’s capital might look dangerous, particularly with its primary position as the largest derivatives trader in the world. As we know from bank earnings across the industry, fixed income has been an extreme sore spot and one of rising concern (derivative trading falls in here).

I do think that is part of the larger picture, but I don’t believe there is any imminent danger for the bank, with management panicking into an emergency dilution. Instead, I think this relates to the overall planned trajectory that has been altered by the events of the past year. That includes fixed income where banks derive(d) a majority of revenue and profitability.

Let me translate into English: the bank, seeking to reclaim former glory (read: profits), bet huge on global recovery. At the time, it had just completed a capital campaign and quite purposefully announced what it was going to do with it: get into the money dealing businesses almost everyone else was steadily, busily getting out of.

FICC and “bond trading”, call it “fixed income”, that’s a whole lot in derivatives.

  • If Bernanke/Yellen was going to be right about 2014, then it would pay off spectacularly. Big banking would be back in a big way with DB right at the front of the reborn franchise.
  • What if Bernanke/Yellen were wrong about 2014? What if Yellen/Powell were wrong about globally synchronized growth?

DB would be left holding a derivatives book chock full of bad bets; money dealers are not neutral players. They never, ever have been no matter in how many textbooks they are described this way.

And if DB were in such a state, that might account for the distinct lack of suitors as well as the apparent urgency among German state regulators. It could also explain the sudden (but not surprising) appearance of now a €50 billion (first estimate) “bad bank.”

Here’s the thing, though. Deutsche wasn’t all on its lonesome out on the limb of Bernanke’s recovery story. It had partners. There were others on the other side(s) of its trades. There are some substantial systemic considerations to its increasing questions.

In other places, I’ve compared the bank to AIG; not in how it will trigger another 2008-style meltdown. Rather, I believe its tentacles and even business lines were similarly laid out – especially what I imagine to be a clouded securities lending business (the thing that actually cost AIG its whole business) that in May 2014 bet on EM markets and global junk.

If DB was using its considerably lonely perch to create a collateral transformation monolith in the Eurobond as well as global repo and derivatives markets (UST’s are collateral in FX lending/borrowing, too), its reverse triggering a collateral crunch, this could explain a lot more than just DB (why there’s so much collateral urgency among primary dealers in Euro$ #4, for example, over and above what we’d already seen in Euro$ #2 and #3). Why German bunds, in particular, on May 29, 2018?

Unfortunately, this is a lot of speculating on my part. And I want to emphasize, and over-emphasize, the lack of direct evidence for it. It is at best a circumstantial theory. Take it with a huge grain of salt. Trying nothing more than to spitball what may (must?) be going on behind the scenes, how global dollar markets really seem to be almost afraid of something lurking in the shadows, but no longer very deep within them.

How does a July rate cut happen? The global economy further and significantly deteriorating would do the trick. So, too, would a surprise troubled bank surprisingly becoming more visibly troubled still.

END

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)IRAN/USA

Last night, we learn that the USA will send another 1000 troops to counter Iran.  The Pentagon releases new photos of the tanker attack and it almost definitely proves that it was down by Iran

(courtesy zerohedge)

US To Send 1,000 More Troops To Counter Iran As Pentagon Releases New Photographs Of Tanker Attack

Just in case you, like most of the rest of the world (including specifically the Japanese, who demanded more proof), were not convinced of Iran’s culpability in the attacks on the tankers in the Gulf of Oman, the Pentagon has released new, upgraded images and a timeline of events.

During a Monday press briefing it provided more details it said bolsters the US narrative of events, and even including a Navy explosives expert who in a presentation walked reporters through reasons why a mine placement above the Kokuka Courageous’ waterline meant the intent was to damage the tanker but not to sink it. “Iran is responsible for the attack based on video evidence and the resources and proficiency needed to quickly remove the unexploded limpet mine,” according to a statement published with the photos. 

 

Image source: Reuters/US Navy

However, as we previously noted, this particular incident has been met with a nearly unprecedented amount of public and media skepticism, even from the likes of CNN, which had initially bluntly acknowledged, “Iran doesn’t appear to have a lot to gain”. In that same report last week, CNN went so far as to agree with Iran’s foreign minister that the whole narrative was just too terribly simplistic and convenient, as CNN surprisingly put it: Iran’s chief moderate, Foreign Minister Javid Zarif, was right to point out that “suspicious doesn’t begin to describe what likely transpired this morning.” When one party is so easily blamed, it is likely blameless, or unfathomably stupid.

The United Nations, meanwhile, along with the European Union, has urged caution and restraint, with Secretary-General Antonio Guterres calling for an independent investigation, saying “it is very important to know the truth.” And notably Germany’s foreign minister said that the grainy video provided by the US Navy was not enough to convince Berlin of Iran’s guilt. 

Yet in predictable fashion the White House is already mulling additional military deployments to the Middle East, including fighter jets, Patriot missile batteries, and even ground combat troops, according to Reuters. We’ve also entered the all too familiar “a range of options are on the table” rhetoric, as Pompeo said in recent statements.

As of Monday evening US CENTCOM announced the US will send 1,000 additional troops to the Middle East as part of preparedness should American assets or allies come under threat from Iran or its proxies.

 

Image source: Reuters/US Navy

Via ABC News: “The new color images released by U.S. Central Command show an Iranian Revolutionary Guard Corps Ghashti-class patrol boat alongside the Kokuka Courageous during and after the removal of the unexploded mine that had been left on the ship’s hull.”

 

Image source: Reuters/US Navy

Via ABC: There are also close-up photos that show the ring around where magnets had attached the mine to the ship, as well as composite residue from the mine still on the ship’s hull. Additional photos from the Pentagon show the holes caused to the two tankers by the mines.

 

Image source: Reuters/US Navy

The Pentagon during Monday’s briefing doubled down on its claim that it couldn’t have been a torpedo, which is why it emphasized the mine being placed above the waterline.

Also interesting was the explanation concerning why IRGC personnel – according to the US claim – would engage in a dangerous demining operation with so many people aboard the small craft that went to the side of the Kokuka Courageous, per ABC:

The officials described the attempt to remove the unexploded mine in the way shown in the images as “very high risk” and not a way that the U.S. Navy would have ever undertaken. According to those officials they would have removed the mine remotely with as few personnel around the ship as possible.

Below is the Pentagon’s newly updated timeline on June 13 near the Strait of Hormuz, providing the US perspective of events.

* * *

At 3:12 a.m. the destroyer USS Mason received a call from the M/T Front Altair reporting that it was attacked in the Gulf of Oman. A large fire was observed a few minutes later and the destroyer USS Bainbridge, 40 nautical miles away, moved to render aid.

At 4:00 a.m., the M/T Kokuka Courageous reports being hit by an external projectile, taking on water and confronting a fire in its engine room.

At 5:09 a.m. Iran’s Hendijan PGG and “multiple fast inshore attack craft observed within the area.”

At 5:15 a.m. the Front Altair confirms major fire amidships.

At 6:26 a.m. an unidentified Iranian patrol boat requests the M/V Hyundai Dubai hand over crew rescued from the Front Altair, a request the ship complies with.

At 8:05 a.m. The Bainbridge approaches a Dutch tug, the Coastal Ace, which had rescued the crew of the Kokuka Courageous. The Iranian ship Hendijan PGG tried to get to the tug first, according to the Pentagon.

At 8:32 a.m. The sailors rescued by the Coastal Ace are transferred to the Bainbridge.Iran’s Foreign Minister Mohammad Javad Zarif has suggested that Iran’s enemies may have been behind the attacks, essentially framing his country, and renewed calls for a regional dialogue. In a tweet Friday he said, “Unilateral US actions – incl. its #EconomicTerrorism on Iran – are solely responsible for insecurity & renewed tension in our region.”

end

Iran/uSA

The Jerusalem post reveals that the uSA is planning a tactical assault on Iran.

two huge commentaries//Michael Snyder

(JERUSALEM POST)

U.N. OFFICIALS: U.S. PLANNING A ‘TACTICAL ASSAULT’ IN IRAN

The military action under consideration would be an aerial bombardment of an Iranian facility linked to its nuclear program, the officials further claimed.

BY SHLOMO SHAMIR/MAARIV ONLINE
 JUNE 17, 2019 20:05

 

2 minute read.

Secretary of State Mike Pompeo

Secretary of State Mike Pompeo. (photo credit: REUTERS)

Is the US going to attack Iran soon?

Diplomatic sources at the UN headquarters in New York revealed to Maariv that they are assessing the United States’ plans to carry out a tactical assault on Iran in response to the tanker attack in the Persian Gulf on Thursday.

According to the officials, since Friday, the White House has been holding incessant discussions involving senior military commanders, Pentagon representatives and advisers to President Donald Trump.

The military action under consideration would be an aerial bombardment of an Iranian facility linked to its nuclear program, the officials further claimed.

“The bombing will be massive but will be limited to a specific target,” said a Western diplomat.

The decision to carry out military action against Iran was discussed in the White House before the latest report that Iran might increase the level of uranium enrichment.

The officials also noted that the United States plans to reinforce its military presence in the Middle East, and in the coming days will also send additional soldiers to the area.

The sources added that President Trump himself was not enthusiastic about a military move against Iran, but lost his patience on the matter and would grant Secretary of State Mike Pompeo, who is pushing for action, what he wants.

Pompeo has repeatedly made statements against Iran in recent days. He claimed that there is no doubt that the recent explosions in tankers in the Gulf were carried out by Iran.

The possibility of a US attack came at the time of the deterioration of relations between the United States and Iran, against the backdrop of the US’s withdrawal from the nuclear agreement a year ago, and the sanctions on the economy of the Islamic Republic.

In recent days, Iran has announced that it intends to deviate from the nuclear agreement signed in 2015 and to enrich uranium at a higher level than the maximum it has committed to within the framework of the nuclear deal.

In addition to the confrontation over Iran’s nuclear program, the United States accuses Tehran of trying to extend its arm across the Middle East and destabilize the region from Yemen to Syria.

Among other things, the White House blamed Iran for the attack on several oil tankers in recent weeks in the Persian Gulf and even published a video showing Iranian fighters apparently removing a mine that did not explode from a ship that was attacked.

For its part, Iran is threatening to continue countering the US sanctions, as long as the other signatories to the nuclear agreement do not compensate for the economic damage caused to it, and even to withdraw from the NPT (Non-Proliferation Treaty), which prevents countries from developing nuclear weapons.

END

Jerusalem Post: U.S. Bombing Of Iran “Will Be Massive But Will Be Limited To A Specific Target”

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

I write this article with a heavy heart.  In recent weeks I had come to the conclusion that there probably would not be a war with Iran in 2019, but now I have to admit that I was wrong.  U.S. officials were very quick to blame Iran for the attack on two tankers in the Gulf of Oman, and President Trump’s advisers have reportedly been pushing him very hard to strike Iran.  President Trump had been hesitant to engage Iran militarily, but now it appears that he is going to give the war hawks in his administration exactly what they want. 

According to the Jerusalem Posta bombing campaign is being planned that “will be massive but will be limited to a specific target”…

According to the officials, since Friday, the White House has been holding incessant discussions involving senior military commanders, Pentagon representatives and advisers to President Donald Trump.

The military action under consideration would be an aerial bombardment of an Iranian facility linked to its nuclear program, the officials further claimed.

“The bombing will be massive but will be limited to a specific target,” said a Western diplomat.

If this happens, it will start a war.

Iran is home to more than 81 million people, it is armed to the teeth, and it is the global central hub for Shia Islam.

It would be the biggest war that the United States has fought since World War II, and the Iranians would fight to the death and they would throw everything that they have at us.  That would include unleashing all Iranian and Hezbollah operatives in North America to conduct widespread terror operations.  Blood would be spilled on a massive scale, and there would be great chaos inside our own nation.

Are we sure that we really want that?

Unfortunately, events are beginning to spin out of control very rapidly now.  On Monday, Iran announced that it will surpass the uranium stockpile limit that was established by Obama’s nuclear deal in just 10 days

“Today the countdown to pass the 300 kilograms reserve of enriched uranium has started and in 10 days time we will pass this limit,” said Iran’s atomic energy organisation spokesman Behrouz Kamalvandi.

“This is based on the Articles 26 and 36 of the (nuclear deal), and will be reversed once other parties live up to their commitments.”

Kamalvandi acknowledged the country has already QUADRUPLED its production of low-enriched uranium.

Needless to say, that is likely to accelerate U.S. military planning.

And very shortly after Iran announced this, U.S. Defense Secretary Patrick Shanahan released a statement announcing that 1,000 more U.S. troops are being sent to the Middle East

The United States is sending 1,000 additional troops to the Middle East, amid rising tensions between the U.S. and Iran. The decision follows last week’s attack on two tankers in the Gulf of Oman that the U.S. blamed on Tehran, with the Pentagon releasing new images on Monday that officials said show Iranian Islamic Revolutionary Guard Corps (IRGC) members removing an unexploded mine from one of the ship’s hulls.

“In response to a request from the U.S. Central Command (CENTCOM) for additional forces, and with the advice of the Chairman of the Joint Chiefs of Staff and in consultation with the White House, I have authorized approximately 1,000 additional troops for defensive purposes to address air, naval, and ground-based threats in the Middle East,” acting Defense Secretary Patrick Shanahan said in a statement on Monday.

Sending troops to the Middle East will raise tensions, but it won’t start a war.

However, bombing Iran will start a war, and there seems to be a growing consensus in Washington that it needs to be done.  For example, just consider the words of Senator Tom Cotton

As the Trump administration works to convince allies that Iran was responsible for last week’s attack on two tankers near the Persian Gulf, Sen. Tom Cotton (R-Ark.) said Sunday that “this unprovoked attack on commercial shipping warrants retaliatory military strikes.”

“The fastest way to get the fire and fury of the U.S. military unleashed on you is to interfere with the freedom of navigation on the open seas and in the air,” Cotton told CBS’ “Face the Nation.”

Unfortunately, most Americans don’t seem to understand that this would not be anything like our wars in Iraq and Afghanistan.

Iran has been preparing for a military confrontation with the west for decades, and many are convinced that their weapons programs are much more advanced than we have been led to believe.

As our friends at ANP have pointed out, back in 2016 a former director of the CIA and four other formerly high ranking U.S. officials co-authored an editorial in which they made the claim that Iran already has nuclear weapons

We assess, from U.N. International Atomic Energy Agency reports and other sources, that Iran probably already has nuclear weapons. Over 13 years ago, prior to 2003, Iran was manufacturing nuclear-weapon components, like bridge-wire detonators and neutron initiators, performing non-fissile explosive experiments of an implosion nuclear device, and working on the design of a nuclear warhead for the Shahab-III missile.

Thirteen years ago Iran was already a threshold nuclear-missile state. It is implausible that Iran suspended its program for over a decade for a nuclear deal with President Obama.

Iran probably has nuclear warheads for the Shahab-III medium-range missile, which they tested for making EMP attacks. Two recent tests violate UN agreements, demonstrating that Iran is brazenly developing its nuclear-capable missiles. Iran already has the largest medium-range ballistic-missile force in the Middle East.

The individuals that co-authored those paragraphs have some extremely impressive credentials

Ambassador R. James Woolsey, former director of central intelligence, is the chancellor of the Institute of World Politics and the chairman of the Leadership Council of the Foundation for Defense of Democracies; William R. Graham was President Reagan’s science adviser, and acting administrator of NASA, and is the chairman of the Congressional EMP Commission; Ambassador Henry Cooper was the director of the Strategic Defense Initiative and chief negotiator at the Defense and Space Talks with the USSR; Fritz Ermarth was chairman of the National Intelligence Council; Peter Vincent Pry is executive director of the EMP Task Force on National and Homeland Security and served in the Congressional Strategic Posture Commission, the House Armed Services Committee, and the CIA.

Yes, it is possible that they could be wrong.

But what if they are right?

Could we be walking into a war against a bunch of apocalyptic nutjobs that already have nuclear weapons and wouldn’t be afraid to use them against us and our allies?

There is no way that we should be rushing into a war with Iran, because the consequences of such a war could be unthinkable.

We have an extremely limited amount of time to stop this conflict from happening, because once the missiles start flying there will be no turning back.

The clock is ticking, and one wrong move could spark World War 3.  Let us pray that President Trump makes the right decisions, because the fate of countless lives is now in his hands.

end

Iran/Japan/Globe
War Drums beating!! Pompeo to present military options to Trump who really does not want war. However, Trump will not stand for aircraft carriers being sitting ducks entering the Strait of Hormuz.
(courtesy zerohedge)

Pompeo To Present Military “Options” To Trump As Iran Threatens Carriers With “Precision” Ballistic Missiles

Echoing prior comments from Tehran’s leaders that a US aircraft carrier in the Persian Gulf would set the stage fora “shooting gallery,” the commander of Iran’s elite Revolutionary Guard Corps (IRGC) warned Tuesday that its ballistic missiles are capable of hitting “carriers in the sea” with great precision

“These missiles can hit with great precision carriers in the sea… These missiles are domestically produced and are difficult to intercept and hit with other missiles,” Brigadier General Hossein Salami said in a televised speech, per Reuters.

 

A 2017 Iranian military drill involving missile test on a carrier mock-up in the Persian Gulf.

He also asserted that Iran’s ballistic missile technology had tipped the balance of power in the Middle East in Tehran’s favor, even with an increasing build-up of American forces in the region, including the USS Abraham Lincoln carrier strike group deployed last month.

As we previously analyzed, it appears Tehran is now waging its own “maximum counter-pressure” campaign against the White House, given its been largely blocked from exporting its vital two million barrels per day,and the US economic blockade sending its economy into a tailspin. Tehran could force Trump to choose among two bad options: see global oil squeezed with soaring prices due to a “tanker war” and military threats in the Strait of Hormuz, or commit US forces to yet another disastrous regime change war in the Middle East.

 

Iran appears ready to match threat for threat, as we mentioned: a real war is fast unfolding in the Middle East today,a war where oil tankers and oil delivery to the world (30% of world oil supply goes through the Gulf) are the targets

 

Brigadier General Hossein Salami

President Trump and his Middle East allies would have to bear the responsibility of the losses and the increase in the oil price worldwide due to attacks on oil tankers that are not likely to stop even in the face of US threats. This is what today’s IRGC threat against US carriers in the Persian Gulf is all about.

Meanwhile, Secretary of State Mike Pompeo briefed reporters Tuesday after meeting with CENTCOM defense chiefs, saying he’s ready to present Present Trump with a full range of options. “We have to be tightly woven with our military,” Pompeo said, according to Bloomberg; however, he reiterated that “President Trump does not want war”.

Pompeo added that the President had sent Japan’s Prime Minister Shinzo Abe a message to take to Iran’s leaders, without disclosing details of the precise nature of that message. But likely Trump again tried to extend a hand to restart direct negotiations – something which it appears Tehran is unwilling to do again after the US unilaterally pulled out of the JCPOA.

end

6. GLOBAL ISSUES

Unbelievable in a huge deflationary move, global yields are crashing all over the globe\

(courtesy zerohedge)

 

Global Bond Yields Are Crashing(er)

Between Draghi’s promises, Trump’s threats, and the stock market’s pressure on Powell,global bond yields are collapsing this morning.

Let’s start with US Treasuries. 10Y yields have crashed to a 2.01% handle… (lowest since Nov 2016, Trump’s election)

 

Completely decoupled from stocks…

10Y Bund yields have plunged to -32bps!! (a record low)

But it’s global…

AUSTRIAN 10-YEAR BOND YIELD FALLS BELOW 0% FOR FIRST TIME

SWEDISH 10-YEAR BOND YIELD FALLS TO 0% FOR FIRST TIME

POLISH 10YR YIELD FALLS 10BPS, HITS LOWEST SINCE APRIL 2015 (lowest since April 2015)

Maybe bonds are on to something?

Record low global bond yields, near record high global stock prices, and macro is collapsing?

And then there’s this!

END

7. OIL ISSUES

8 EMERGING MARKET ISSUES

i)VENEZUELA/

HUMOUR STORY FOR YOU TONIGHT:
HILLARY JUST CANNOT WIN NOT MATTER WHAT!!

Clinton Broadway Play Shuts Down Early After Ticket Sales Sag

A 90-minute fictional Broadway play about Bill and Hillary Clinton will end its run a month early due to soft ticket sales.

Starring Laurie Metcalf and John Lithgow, Hillary and Clinton was scheduled to close July 21, but will instead hold its final performance on Sunday, June 23 according to producer Scott Rudin.

The show, titled “Hillary and Clinton,” takes place in March 2008 and offers a fictional behind-the-scenes look at the former secretary of state’s first presidential campaign as then-Senator Barack Obama began gaining momentum. –Fox News

The play was launched in Chicago in 2016 with a different cast, and premiered on Broadway in April of this year at the John Golden Theatre. It was described by playwright Lucas Hnath as “a play about the Clintons that’s not a play about the Clintons.”

As the New York Times puts it, the play was “asking us to see the world through the eyes of a woman who ostensibly has all the right stuff to be president and yet is never allowed to win.

Lithgow described the Broadway show as taking on a new sense of “melancholy” in the Donald Trump era, according to the Washington Free Beacon‘s David Rutz.

In May, tickets for the real Bill and Hillary Clinton’s 13 stop speaking tour were similarly dismal – selling for less than $10 on the secondary market in some cities.

END

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

Euro/USA 1.1191 DOWN .0033 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 108.24 DOWN 0.306 (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 1.2516   DOWN   0.0026  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3418 UP .0008 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  TUESDAY morning in Europe, the Euro FELL BY 33 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1191 Last night Shanghai COMPOSITE CLOSED UP 5.65 POINTS OR 0.20% 

//Hang Sang CLOSED UP 2.54 POINTS OR 0.09%

/AUSTRALIA CLOSED UP 0,58%// EUROPEAN BOURSES GREEN

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 271,61 POINTS OR 1.00%

/SHANGHAI CLOSED UP 2.54 POINTS OR 0.09%

Australia BOURSE CLOSED UP. 58% 

Nikkei (Japan) CLOSED DOWN 151.79  POINTS OR 0.72%

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: $1349.60

silver:$14.97-

Early TUESDAY morning USA 10 year bond yield: 2.02% !!! DOWN 9 IN POINTS from MONDAY’S night in basis points and it is trading WELL ABOVE resistance at 2.27-2.32%.

The 30 yr bond yield 2.52 DOWN 9  IN BASIS POINTS from MONDAY night.

USA dollar index early TUESDAY morning: 97.69 UP 13 CENT(S) from  MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing TUESDAY NUMBERS \12: 00 PM

Portuguese 10 year bond yield: 0.53% DOWN 9 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.12%  UP 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.39%//DOWN 20 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD: 2.12 DOWN 23 points in basis points yield from yesterday./

the Italian 10 yr bond yield is trading 183 points higher than Spain.

GERMAN 10 YR BOND YIELD: FALLS –.32% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.44% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

END

IMPORTANT CURRENCY CLOSES FOR TUESDAY

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

Euro/USA 1.1196  DOWN    .0028 or 28 basis points

USA/Japan: 108.43 DOWN .118 OR YEN UP 12  basis points/

Great Britain/USA 1.2541 DOWN .0001 POUND DOWN 1  BASIS POINTS)

Canadian dollar UP 16 basis points to 1.3395

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The USA/Yuan,CNY: AT 6.9032    0N SHORE  (UP)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.9013  (YUAN UP)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.8427 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

Your closing 10 yr US bond yield DOWN 4 IN basis points from MONDAY at 2.05 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.55 DOWN 4 in basis points on the day

Your closing USA dollar index, 97.64 UP 8  CENT(S) ON THE DAY/1.00 PM/

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

London: CLOSED UP 85.73  1.17%

German Dax :  CLOSED UP 245.93 POINTS OR 2.03%

Paris Cac CLOSED UP 118,78 POINTS 2.20%

Spain IBEX CLOSED UP 109.60 POINTS or 1.19%

Italian MIB: CLOSED UP 507.36 POINTS OR 2.46%

WTI Oil price; 53.81 12:00  PM  EST

Brent Oil: 62.16 12:00 EST

USA /RUSSIAN /   ROUBLE RISES:    63.95  THE CROSS LOWER BY 0.36 ROUBLES/DOLLAR (ROUBLE HIGHER BY 36 BASIS PTS)

TODAY THE GERMAN YIELD FALLS  TO –.32 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 :  54.09//

BRENT :  62.30

USA 10 YR BOND YIELD: … 2.05…   VERY DEADLY//

USA 30 YR BOND YIELD: 2.55..VERY DEADLY/

EURO/USA 1.1197 ( DOWN 27   BASIS POINTS)

USA/JAPANESE YEN:108,42 DOWN .131 (YEN UP 13 BASIS POINTS/..

USA DOLLAR INDEX: 97.63 UP 7 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2563 UP 23  POINTS

the Turkish lira close: 5.8347

the Russian rouble 64.07   UP 0.27 Roubles against the uSA dollar.( UP 27 BASIS POINTS)

Canadian dollar:  1.3383 UP 27 BASIS pts

USA/CHINESE YUAN (CNY) :  6.9032  (ONSHORE)/we need to watch these levels/anything greater than 6.95 will be deadly./

USA/CHINESE YUAN(CNH): 6.9013 (OFFSHORE) we need to watch these levels/anything greater than 6.95 will be deadly/

German 10 yr bond yield at 5 pm: ,-0.32%

The Dow closed  UP 353.01 POINTS OR 1.35%

NASDAQ closed UP 131,95 POINTS OR 1.03%


VOLATILITY INDEX:  15.17 CLOSED DOWN .18

LIBOR 3 MONTH DURATION: 2.418%//libor dropping like a stone

FROM 2.410

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

TRADING IN GRAPH FORM FOR THE DAY//

 

Stocks Near Record Highs As Xi Hope & Powell Hype Trump Global Economic Collapse

We hate to be the bearer of bad news, as stocks near record highs, bond yields hit record lows, and global macro collapses to cycle lows…BUT…

 

Chinese stocks missed out on today’s fun (watch them catch up tonight) as they closed before Draghi rescued assets around the world and cornered Powell…

 

European stocks accelerated higher today after Draghi promised moarrrrr….

Sending Bund yields to new record lows…

And pushing yields on various European sovereign notes below 0 for the first time in history.

 

US equities surged in the pre-open on the Draghi and Trump-Xi comments…

 

But drifted lower after the European close with some weakness in the last 30 mins… Nasdaq was the best performer but the S&P 500 lagged…

Nevertheless, the S&P 500 is just 1.25% from its record highs, The Dow around 2% below its and Nasdaq around 3% below (with Small Caps and Trannies still down around 11% from their 52-week highs). China’s Shanghai Composite is down around 12% from its 52-week highs.

 

BYND opened above $200, then plunged back into the red…

 

Notably, BofA’s survey suggests market participants say that drop in the S&P to 2430 would prompt an immediate rate cut by The Fed and to 2350 would prompt Trump to do a trade deal no matter what…

 

Treasury yields plunged on Draghi’s comments and Trump’s follow up, but as the day went on, rates recovered some of the drop (though the long-end notably outperformed)…

Dramatically flattening the yield curve…

Bond yields were extremely volatile…

2Y roundtripped the entire plunge…

and 10Y traded like a penny stock after trading as low as 2.01%!!!

Breakevens continue to collapse…

European inflation forwards soared today – biggest spike since Feb 2012…

Short-dated Bills are extremely volatile – something or someone is in pain

Ahead of tomorrow’s Fed statement, expectations for Fed rate cuts continue to be extremely dovish…

As the global negative debt pile is within inches of a record high…

 

The Dollar spiked as Draghi’s comments drove the euro lower but by the close the dollar ended dovishly lower as Trump-Xi headlines hit…

 

EUR tumbled on the Draghi headlines…back below 1.1200…

 

Yuan spiked on the Trump-Xi call, hitting one-month highs against the dollar…

 

Cryptos slipped lower today, presumably as Facebook’s Libra dominated headlines…Ripple was worst on the day

But Bitcoin held above $9000…

 

Commodities were all higher on the day, led by oil’s gains…

 

Gold was slammed back below $1350 early on as the dollar spiked but rallied back into the green after Europe closed…

 

WTI soared today on the heels of China trade hopes…ripping off the $52 level once again.

 

Finally, we note that global macro data is double-dipping to cycle lows – and the longest period of negative surprises in history…

Who’s right? Global Bonds, Global Stocks, or Global Macro?

So, maybe The Fed should cut rates, right? Trouble is, the market already did, sending financial conditions to near record ‘easy’ levels…

Does The Fed really want to be easing with financial conditions already so easy? If you ask stocks, yep!!

end

i) Market trading/

MARKET TRADING/LATE MORNING
Market soars with Trump indicating that he is to have an “extended meeting with Xi
(courtesy zerohedge)

Dow Soars After Trump Says He Will Have “Extended Meeting” With Xi Next Week

The bears are suffering a trifecta of terror today.

First, Draghi threw in the towel said he would be cutting rates soon.

Second, Powell is expected to unleash the dovish floodgates tomorrow.

And finally, moments ago, Trump restored hope that a trade deal may be forthcoming at next week’s G-20 when he tweeted that contrary to conventional expectations, he will be having an “extended meeting” with Xi next week..

Donald J. Trump

@realDonaldTrump

Had a very good telephone conversation with President Xi of China. We will be having an extended meeting next week at the G-20 in Japan. Our respective teams will begin talks prior to our meeting.

The news sent USDJPY surging…

… the Dow soaring more than 300 points…

… and the S&P approaching all time highs.

So what does this mean for the Fed: with a glimmer of hope now appearing that trade war may be ending, and with the S&P at all time highs, just how does Powell announce a rate cut tomorrow? We’ll find out in just over 24 hours.

end

LATE AFTERNOON

ii)Market data/

Even though rates are plunging everywhere, housing starts slid in May

(courtesy zerohedge)

Housing Starts Slide In May, Despite Plunging Rates

Despite the hype of soaring mortgage applications (refis, not purchases) and homebuilder stocks, housing starts tumbled 0.9% MoM in May (drastically missing expectations for a 0.3% rise), and while permits rose a better than expected 0.3% MoM, it remains very flat for the last six months.

 

Multi-family permits fell in May (to 820k) as single-family rose modestly (to 449k)…

 

The better than expected print for overall starts (at 1.294mm), was thanks to a massive spike in rental units…

Breakdown

  • Housing Starts 1-Unit: -6.4%, from 876K, to 820K
  • Housing Starts Multi Unit: +13.8%, from 383K to 436K

Not exactly a picture of health for the future of millennial homeownership as rental nation remains front and center, despite plunging mortgage rates.

end

iii)USA ECONOMIC/GENERAL STORIES

The market will not like this: Trump is considering demoting Fed Chair Powell

(courtesy zerohedge)

White House Reportedly Explored Legality Of Demoting Fed Chair Powell, Kudlow Denies (Kinda)

Update: Minutes after the Bloomberg reports, White House chief economic advisors Larry Kudlow denied any considerations to demoting Fed Chair Powell, “we are not taking any action to change Powell’s status.”

But then, apparently by mistake, confirmed the discussions had taken place by admitting that the “Powell demotion story was a six-month-old story.”

*  *  *

Since President Trump first discussed firing Jerome Powell, out of a sense of frustration that his Fed Chair pick was not dovish enough, he has regularly expressed his displeasure at central bankers lack of willingness to do whatever it takes to keep him in office (with today’s Draghi debacle top of mind) and the weekend’s interview comments:

“[Powell]’s my pick — and I disagree with him entirely,” Trump said last week in an interview with ABC News.

“Frankly, if we had a different person in the Federal Reserve that wouldn’t have raised interest rates so much we would have been at least a point and a half higher.”

But, things reportedly got a lot more serious than some spurious tweets and off the cuff remarks, as Bloomberg reports, according to people familiar with the matter, the White House explored the legality of demoting Powell in February, soon after Trump talked about firing him.

Bloomberg then reports that Trump’s team conducted the legal analysis and came to a conclusion that has remained closely held within the White House, the people said, requesting anonymity to discuss internal deliberations. It isn’t clear whether Trump directed the legal review, and the people didn’t describe the outcome.

Fed spokeswoman Michelle Smith said in an email: “Under the law, a Federal Reserve Board chair can only be removed for cause.”

END

An excellent commentary from Michael Snyder as he reviews all of those bad economic numbers coming out during this month

(courtesy Michael Snyder)

 

Evidence The US Economy Could Be Plunging Into A Very Deep Recession Is Rapidly Mounting

Authored by Michael Snyder via The Economic Collapse blog,

Not since 2008 have we seen so much bad economic data come rolling in all at the same time. 

Even without a war with Iran, which by the way is looking increasingly likely with each passing day, it definitely appears that the U.S. economy is steamrolling toward recession territory.  The employment numbers for last month were abysmal, global trade has collapsed to the lowest level that we have seen since the last recession, and manufacturing numbers just keep getting worse and worse.  In fact, the New York Fed’s Empire State manufacturing index just suffered the worst one month decline in history

 

The New York Fed’s Empire State business conditions index took a sharp turn for the worse in June, falling into negative territory for the first time in more than two years.  (HARVEY: REPORTED TO YOU YESTERDAY)

The Empire State manufacturing index plummeted 26.4 points to negative 8.6 in June, the New York Fed said Monday. That’s a record decline. Economists had expected a reading of positive 10, according to a survey by Econoday.

Not even during the last recession did we witness a plunge of that magnitude.

And other measures of U.S. manufacturing activity are also “sinking steadily”

And it’s not the only indicator showing a turn for the worse: Others, including the Federal Reserve Bank of Philadelphia’s Manufacturing Business Outlook Survey, have also been sinking steadily.

When you step back and look at the big picture, it becomes quite clear what is happening.

At this point, it is simply not possible for anyone to credibly claim that the U.S. economy is still in good shape.  All of the numbers are pointing in the same direction, and Morgan Stanley’s chief US equity strategist Michael Wilson made this point exceedingly well on Monday

Decelerations and disappointments are mounting:

  • Cass Freight Index
  • Retailer earnings
  • Durable goods orders
  • Capital spending
  • PMIs
  • May payrolls
  • Semiconductor inventories
  • Oil demand
  • Restaurant performance indices…

and our own Morgan Stanley Business Conditions Index (MSBCI). Looking at the MSBCI in particular, the headline metric showed the biggest one-month drop in its history going back to 2002 and very close to its lowest absolute reading since December 2008.

This index has a tight relationship with ISM new orders and analyst earnings revisions breadth. Our analysis shows downside risk to ISM new orders (25% y/y), S&P earnings revisions breadth (6-13%) and the S&P 500 y/y (8%) if historical links hold.

For much more on the collapse of the MSBCI, please see my previous article entitled “Morgan Stanley’s Business Conditions Index Just Suffered The Biggest One Month Decline In History”.

Many analysts are pointing out that our economic problems really seemed to start accelerating once trade negotiations with China completely broke down, and this is true.

If the U.S. and China could find a way to reach a trade agreement, that would be a tremendous short-term boost to the economy at a time when we desperately need it.

But that isn’t going to happen unless President Trump completely caves in.  Because at this point the Chinese are extremely angry, and they are definitely in no mood to compromise.  In fact, one Chinese editorial that was recently published boldly declared that they are ready “to fight it out till the end”

“China will not be afraid of any threats or pressure the United States is making that may escalate economic and trade frictions. China has no choice, nor escape route, and will just have to fight it out till the end,” the Qiushi commentary said. “No one, no force should underestimate and belittle the steel will of the Chinese people and its strength and tenacity to fight a war.”

When Americans are deeply suffering during the next recession, will they be willing to “fight it out till the end” like the Chinese are?

And if a trade war with China wasn’t enough, now we also have a trade war with India to deal with.  In fact, India just hit U.S. exports with a wave of very large tariffs

India just increased tariffs on US exports, dealing another blow to fragile global trade.

The tariffs on several US products will go into effect on June 16, India’s Finance Ministry said in a statement Saturday. The goods targeted include American apples — which will be hit with a 70% tariff — as well as almonds, lentils and several chemical products.

Of course these tariffs were in retaliation for the tariffs that we hit India with after Trump kicked them out of a preferential trade program

The two countries exchange goods and services worth about $142 billion a year, but the relationship has soured in recent weeks after the Trump administration ended India’s participation in a preferential trade program earlier this month. The program exempted Indian goods worth more than $6 billion from US import duties in 2018.

We were certainly heading for a recession even without these trade conflicts, but without a doubt they have made things substantially worse.

And now is definitely not a good time for a recession, because much of the country is completely and utterly unprepared for any sort of an economic downturn.  The following comes from an opinion piece authored by William Spriggs

One oft-cited statistic points to just how unstable the finances of most Americans are: nearly 40 percent of households could not withstand an unexpected expenditure of $400 — the cost of just one medical bill or car repair.

The most unnerving point to keep in mind is that we are even less prepared for a sudden slowing of the economy than we were before the Great Recession of 2008.

During the relatively stable economic times of the past few years, Americans should have been preparing instead of partying.

But instead, most Americans bought into the myth that our massively bloated debt-fueled standard of living could be perpetuated indefinitely.

So now a crisis is coming which many believe is going to be even worse than what we experienced in 2008, and most of us are going to be completely blindsided by it.

END

 

SWAMP STORIES

Very sad!! after saying a year ago that his border town in Texas was not a war zone, the Mayor of a border town in the De; Rio district now is freaking out at the Republican for their inaction as illegals are overwhelming his city.

(courtesy zerohedge)

Democrat Border Town Mayor Freaks Out Over GOP Inaction As Illegals Overwhelm City

The Democrat mayor of a Texas border town – which he said just 14 months ago wasn’t a ‘war zone’ – chewed out staffers for Republican Senator John Cornyn, who he accused of not taking steps to help control the surge of migrants that are overwhelming local resources.

 

Bruno Lozano – Del Rio’s youngest and first openly gay mayor, implored the Congressman’s office to see what the city is dealing with firsthand, according to the Conservative Review.

 

I asked that you go see firsthand and walk through what the Border Patrol is walking through, walk through the system of release, walk through the coalition [of nonprofits and churches], walk through the judicial process, because the senators aren’t here,” said Lozano to Cornyn staffer Jonathan Huhn, while slamming absentee Senators.

They need to see firsthand what’s going on. They need to understand the frustrations that the commissioners, or that the city council, the school board, the hospital officials are managing [and] having to deal with.

Of note, the Texas Tribune reported in March that Border Patrol’s Del Rio sector had begun releasing migrants into the community because it “has experienced a significant rise in the number of family units arrested throughout the sector.”

Lozano went on to describe how managing immigration was ‘not their jurisdiction,’ and that city officials need to focus on their ‘streets, parks and economy.’

We do not have the funds to fund this project that has manifested and been dumped here in the city of Del Rio Texas, Val Verde County, and the entire border. And we’re frustrated. We’re extremely frustrated. Our priorities on the city council are our streets, are our parks, are the economy, are the drive of the community and the places of worship and the places to have leisure activities. It is not the priority to solve immigration. … I will not stand for having to be dumped and find a solution, as mayor … for immigration. It is not our purview; it is not our jurisdiction. It is your job to ensure that you convey the frustration that I share with you all to ensure that our representatives at the federal level are hearing it. It’s falling on deaf ears, and we are tired of it. We are sick and tired of the deaf ears. … It’s happening in real time. -Del Rio, Texas Mayor Bruno Lozano

As the Conservative Review’s Daniel Horowitz notes, Lozano’s outburst at the June 8th special meeting of local officials is quite the turnaround for the left-wing mayor and veteran – who said in April 2018 that he wanted to ‘educate northerners’ that the border is not a “war zone.”

That tells you just how rapidly things have changed, with Del Rio becoming a transit zone for migrants from all over the world coming and draining city transportation services as well as the town’s only hospital.

Watching this mayor’s reaction to the border crisis brings to mind similar reactions from officials in Broward and Palm Beach Counties in Florida last month, when they heard a rumor that 1,000 illegal aliens would be dumped into their counties. These are very Democrat jurisdictions, but even they had zero appetite for the strains of illegal immigrants. –Conservative Review

Del Rio made headlines recently after PBS reported on Sunday that Del Rio Sector Border Patrol apprehended over 500 African migrants, most of whom are from the Republic of Congo, the Democratic Republic of the Congo, Angola and Cameroon.

One recent Saturday in Tijuana, there were 90 Cameroonians lined up to get on a waiting list to request asylum that has swelled to about 7,500 names. Also on the waiting list are Ethiopians, Eritreans, Mauritanians, Sudanese and Congolese.

Cameroonians generally fly to Ecuador because no visa is required and take about four months to reach Tijuana. They walk for days in Panama through dense forest, where they are often robbed and held in government-run camps. They come from Cameroon’s English-speaking south with horrifying stories of rape, murder and torture since late 2016 by soldiers of the country’s French-speaking majority, which holds power. –PBS

Of note, approximately 10-15% of migrants have a “legitimate asylum claim” according to CBP Commissioner Kevin McAleenan.

 

END
New Clinton email review reveals multiple security incidents
(courtesy zerohedge)

New Clinton Email Review Reveals ‘Multiple Security Incidents’ 

 

The State Department revealed in a letter to Sen. Chuck Grassley (R-IA) that it had identified “multiple security incidents” committed by current or former employees who handled Hillary Clinton’s emails, according to Fox News.

So far 23 “violations” and seven “infractions” have been issued as a part of the department’s ongoing investigation – a number that will likely rise according to State Department Assistant Secretary in the Bureau of Legislative Affairs, Mary Elizabeth Taylor. 

“To this point, the Department has assessed culpability to 15 individuals, some of whom were culpable in multiple security incidents,” said Taylor in the letter to Grassley, adding “DS has issued 23 violations and 7 infractions incidents. … This number will likely change as the review progresses.

Donald J. Trump

@realDonaldTrump

Wow! The State Department said it has identified 30 Security Incidents involving current or former employees and their handling of Crooked Hillary Clinton’s Emails. @FoxNews This is really big. Never admitted before. Highly Classified Material. Will the Dems investigate this?

Taylor called the matter “serious” and acknowledged that it was time consuming.

“Given the volume of emails provided to the Department from former Secretary Clinton’s private email server, the Department’s process has been necessarily more complicated and complex requiring a significant dedication of time and resources,” she wrote, saying that the department expects to conclude its investigation by September 1.

What’s the consequence for these “multiple security incidents?” An official slap on the wrist according to the report:

“In every instance in which the Department found an individual to be culpable of a valid security violation or three or more infractions, the Department forwarded the outcome to the Bureau of Diplomatic Security’s Office of Personnel Security and Suitability (DS/PSS), to be placed in the individuals’ official security file,” wrote Taylor. “All valid security incidents are reviewed by DS and taken into account every time an individual’s eligibility for access to classified information is considered.”

“This referral occurred whether or not the individual was currently employed with the Department of State and such security files are kept indefinitely, Taylor added. “Consistent with the referral policy, for individuals who were still employed with the Department at the time of adjudication, the Department referred all valid security violations or multiple infractions to the Bureau of Human Resources.”

Clinton’s private email use has remained in the spotlight, as the DOJ looks into potential misconduct in the handling of federal authorities’ surveillance and intelligence operations in 2016. Then-FBI Director James Comey said in 2016 that Clinton’s handling of classified information was “extremely careless” — remarks that were watered down from their original draft — but that “no reasonable prosecutor” would bring charges.

It emerged earlier this year that then-FBI general counsel James Baker testified that he thought Clinton should have been prosecuted until he was convinced otherwise “pretty late” in the investigation. –Fox News

As former Utah GOP Rep. and current Fox News contributor Jason Chaffetz noted, “What’s bizarre about this, is in any other situation, there’s no possible way they would allow the potential perpetrator to self-select what the FBI gets to see, adding “The FBI should be the one to sort through those emails — not the Clinton attorneys.”

END

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

 

@NewYorkFed: The new orders index also posted a significant decline, falling twenty-two points to -12.0, indicating a decline in orders… The shipments index fell to 9.7 in June from 16.3 in May… Labor market indicators pointed to small declines in employment and hours worked. The index for number of employees fell 8 points to -3.5, its first negative value in over two years, pointing to a small decline in employment levels.  The average workweek index also fell below zero, to -2.2, pointing to a slightly shorter workweek. The prices paid index was little changed at 27.8, suggesting input prices increased at about the same pace as last month.  The prices received index fell 6 points to 6.8, marking a fourth consecutive decline and pointing to an ongoing deceleration in selling price increases… The index for future business conditions fell 5 points to 25.7…The capital expenditures index fell 16 points to 10.5, pointing to slower growth in capital spending plans…The technology spending index fell 10 points to 12.8.  Full Empire State Manufacturing Survey:https://www.newyorkfed.org/survey/empire/empiresurvey_overview

Iran Warns Europe It Will Breach Nuclear Stockpile Cap in 10 Days

  • 60-day deadline to salvage nuclear deal will not be renewed
  • Announcement could further stoke tension in the Gulf

Iran warned European nations on Monday that it would breach in 10 days the landmark 2015 nuclear agreement unless they take action to alleviate the pressure of tightening U.S. sanctions in the coming weeks.  The spokesman for Iran’s atomic energy agency, Behrouz Kamalvandi, said the country would exceed a cap on stockpiles of low-grade uranium on June 27 and threatened to raise enrichment purity beyond a 3.67% limit meant to prevent Iran from making weapons-grade material…

https://www.bloomberg.com/news/articles/2019-06-17/iran-says-will-breach-nuclear-stockpile-limit-in-10-days

Retirees around the world might run out of money 10 years before they die

https://t.co/ddP2xygaHM

Central banks’ financial repression harms retirees more than any demographic.  This is a recipe for social unrest at any time, let alone when the west is plagued with aging populations, notably US Baby Boomers.

@JackPosobiec: Pentagon considering targeted missile strike on Iran’s uranium enrichment facility in early July – @OANN

State Department identifies 23 violations, ‘multiple security incidents’ concerning Clinton emails

The State Department revealed Monday that it has identified “multiple security incidents” involving [15] current or former employees’ handling of Hillary Clinton’s emails, and that 23 “violations” and seven “infractions” have been issued as part of the department’s ongoing investigation… The State Department, calling the matter “serious,” said it expected to conclude the investigation by Sept. 1…

https://www.foxnews.com/politics/hillary-clinton-emails-state-department-violations-security-incidents

The CIA Is Running Scared – Barr’s bloodhounds are sniffing up Langley’s skirts.

In a New York Times article entitled “Justice Department Seeks to Question CIA in its Own Russia Investigation,” the IC makes clear its fear of the results of Barr’s investigation of their spy operation on candidate Trump in 2016 that continued through his early presidency… the CIA believes it should not be accountable for its misdeeds, even if laws have been broken…

    The senior CIA officials Durham’s investigators will question will obviously include CIA Director Gina Haspel, who has the most to lose. She could be fired from her position, lose her reputation, and — if the evidence proves that she violated the law — sent to jail…   https://spectator.org/the-cia-is-running-scared/

@GeorgePapa19: Two weeks after I exposed Italy’s role in spygate, Obama is heading to Italy today to meet with the former Italian prime minister who weaponized his intel assets against us. Keep focused, America. The real headlines are now coming out

 

@TomFitton: Recall John McCain staffer Henry Kerner urged Obama IRS (Lois  Lerner) to “audit so many that it becomes financially ruinous.” Kerner  now runs anti-@RealDonaldTrump Office of Special Counsel that abused power today to lawlessly attack @KellyannePolls.

To understand how and why Kellyanne Conway was selectively targeted by the Office of Special Counsel over so-called Hatch Act violations, one must look no further than Henry Kerner, the special counsel for the United States Office of Special Counsel. He was nominated for the position by President Trump in 2017… [DJT with another stupid hiring – he keeps enlisting people that hate him or his agenda.]

https://pjmedia.com/trending/theres-something-you-should-know-about-the-special-counsel-for-the-osc-that-is-targeting-kellyanne-conway/

Booker Adds a Dash of Anti-Trump Anger to His Message of Love [You can’t make this up!]

‘Anger and love are not mutually exclusive,’ Booker says

https://www.bloomberg.com/news/articles/2019-06-17/booker-adds-a-dash-of-anti-trump-anger-to-his-message-of-love

The stupid, illogical, inciting and insulting comments of politicians keep making new highs.  US voters and the MSM (presumed watchdogs of the Republic) share the blame.

@Uncle_Jimbo: Trump eating his steak well done w/ ketchup is more impeachment worthy than most of the garbage from the Left

Well that about does it for tonight

I will see you on Wednesday night

H

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One comment

  1. lyle aldrich · · Reply

    hey Harvey, I greatly apreciate the work you must put in for each report. In regards to your theory that JPM is acumulating silver for the US to pay back to China I find it hard to believe that JPM would do anything for anyone, even the US in its acumulation of silver. And if they are, why isnt china requesting payback? Thanks for a great site, lyle

    Like

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