JULY 10 /GOLD REBOUNDS NICELY UP $11.65 TO $1410.35 AND THEN ANOTHER 8 DOLLARS IN THE ACCESS MARKET//SILVER UP 9 CENTS TO $15.21 AND THEN ANOTHER 3 CENTS IN THE ACCESS MARKET//POWELL IN HIS TESTIMONY TO CONGRESS BECOMES VERY DOVISH AND INDICATES HE WILL LOWER RATES IN LATE JULY// BILL BLAIN TAKES ON BOEING AND THINKS THEY MAY FAIL!!//HUGE STORIES ON

 

GOLD: $1410.35  UP  $11.65 (COMEX TO COMEX CLOSING)

 

Silver:  $15.21  UP 9 CENTS  (COMEX TO COMEX CLOSING)//

 

 

Closing access prices:

Gold : $1419.25

 

silver:  $15.25

 

 

YOUR DATA…

 

 

COMEX DATA

 

 

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

today RECEIVING 5/22

EXCHANGE: COMEX
CONTRACT: JULY 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,397.500000000 USD
INTENT DATE: 07/09/2019 DELIVERY DATE: 07/11/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
657 C MORGAN STANLEY 2
661 C JP MORGAN 5
690 C ABN AMRO 6
737 C ADVANTAGE 12 15
905 C ADM 4
____________________________________________________________________________________________

TOTAL: 22 22
MONTH TO DATE: 771

 

 

NUMBER OF NOTICES FILED TODAY FOR  JULY CONTRACT: 22 NOTICE(S) FOR 2200 OZ (0.0684 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  771 NOTICES FOR 77100 OZ  (2.398 TONNES)

 

 

 

SILVER

 

FOR JULY

 

 

13 NOTICE(S) FILED TODAY FOR 65,000  OZ/

 

total number of notices filed so far this month: 3614 for   18,070,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 13,042 UP 447 

 

 

 

Bitcoin: FINAL EVENING TRADE: $   $12102 DOWN 845

 

 

 

 

end

 

 

 

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL A SMALL  SIZED 843 CONTRACTS FROM 219,336 DOWN TO 218,493 DESPITE THE 7 CENT GAIN IN SILVER PRICING AT THE COMEX.

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 JULY. 0 FOR AUGUST, 525 FOR SEPT, AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  525 CONTRACTS. WITH THE TRANSFER OF 525 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 525 EFP CONTRACTS TRANSLATES INTO 1.025 MILLION OZ  ACCOMPANYING:

1.THE 7 CENT GAIN IN SILVER PRICE AT THE COMEX AND

2. THE STRONG AMOUNT OF SILVER OUNCES WHICH STOOD FOR DELIVERY IN THE LAST 12 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.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

20.775 MILLION OZ INITIAL STANDING FOR JULY

 

WE HAD CONSIDERABLE SHORT COVERING AT THE SILVER COMEX LAST NIGHT..AND ZERO SPREADING ACCUMULATION.

 

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

9062 CONTRACTS (FOR 7 TRADING DAY TOTAL 9062 CONTRACTS) OR 45.31 MILLION OZ: (AVERAGE PER DAY: 1294 CONTRACTS OR 6.47 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY:  45.31 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 6.47% 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:          1202.91   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

JUNE 2019 , TOTAL EFP ISSUANCE:                                               265.38 MILLION OZ

RESULT: WE HAD A SMALL SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 843, DESPITE THE 7 CENT GAIN IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  SMALL SIZED EFP ISSUANCE OF 525 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) .

 

TODAY WE LOST A SMALL SIZED: 318 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 525 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 843  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 7 CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $15.12 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. 1.093 BILLION OZ TO BE EXACT or 156% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 13 NOTICE(S) FOR 65,000 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 2.660 MILLION OZ//JULY 20.775 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 WILL WITNESS THE MORPHING OF OUR SPREADERS OUT OF SILVER AND INTO GOLD AS THE JULY MONTH PROCEEDS INTO THE ACTIVE DELIVERY MONTH OF AUGUST. 

 

 

 

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 GOLD OPEN INTEREST WILL RISE FROM NOW ON UNTIL ONE WEEK PRIOR TO FIRST DAY NOTICE AND THAT IS WHEN THEY START THEIR CRIMINAL LIQUIDATION.

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

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 JULY 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 TINY 934 CONTRACTS, TO 598977, ACCOMPANYING THE TINY $0.60 PRICING GAIN WITH RESPECT TO COMEX GOLD PRICING YESTERDAY// /THE SPREADING LIQUIDATION WILL NOW COMMENCE FOR GOLD….

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 5397 CONTRACTS:, AUGUST 2019: 4841 CONTRACTS, DEC>  25 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 598,977.  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 GOOD SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 5800 CONTRACTS: 934 CONTRACTS INCREASED AT THE COMEX  AND 4866 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 5800 CONTRACTS OR 580,000 OZ OR 18.04 TONNES.  YESTERDAY WE HAD A TINY  GAIN OF $0.60 IN GOLD TRADING.AND WITH THAT TINY GAIN IN  PRICE, WE  HAD A STRONG GAIN IN GOLD TONNAGE OF 18.04  TONNES!!!!!! THE BANKERS WERE SUPPLYING INFINITE 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 JULY : 52,696 CONTRACTS OR 5,269,600 oz OR 163.90 TONNES (7 TRADING DAY AND THUS AVERAGING: 7528 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 7 TRADING DAY IN  TONNES: 163.90 TONNES

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

THUS EFP TRANSFERS REPRESENTS 163.90/3550 x 100% TONNES =4.61% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     3080.71  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

JUNE 2019 TOTAL ISSUANCE:                   642.22 TONNES

 

WHAT IS ALARMING TO ME, ACCORDING TO OUR LONDON EXPERT ANDREW MAGUIRE IS THAT THESE EFP’S ARE BEING TRANSFERRED TO WHAT ARE CALLED SERIAL FORWARD CONTRACT OBLIGATIONS AND THESE CONTRACTS ARE LESS THAN 14 DAYS.  ANYTHING GREATER THAN 14 DAYS, THESE MUST BE RECORDED AND SENT TO THE COMPTROLLER, GREAT BRITAIN TO MONITOR RISK TO THE BANKING SYSTEM.  IF THIS IS INDEED TRUE, THEN THIS IS A MASSIVE CONSPIRACY TO DEFRAUD AS WE NOW WITNESS A MONSTROUS TOTAL EFP’S ISSUANCE AS IT HEADS INTO THE STRATOSPHERE

 

 

Result: A SMALL SIZED INCREASE IN OI AT THE COMEX OF 934 WITH THE TINY PRICING GAIN THAT GOLD UNDERTOOK ON YESTERDAY($0.60)) //.WE ALSO HAD  A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 4866 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 4866 EFP CONTRACTS ISSUED, WE  HAD A STRONG  SIZED GAIN OF 8557 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

4866 CONTRACTS MOVE TO LONDON AND 934 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 18.04 TONNES). ..AND THIS HUGE INCREASE OF  DEMAND OCCURRED ACCOMPANYING THE TINY  GAIN IN PRICE OF $0.60 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX. WE WILL COMMENCE WITH SPREADING ACCUMULATION IN GOLD AS  THE MONTH PROCEEDS/

 

 

 

we had:  22 notice(s) filed upon for 2200 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD UP $.11.65 TODAY//

LATE THIS AFTERNOON A HUGE 6.46 PAPER TONNES WERE ADDED TO THE GLD//

 

 

INVENTORY RESTS AT 800.54 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 9 CENTS TODAY:

 

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

 

 

 

 

 

 

/INVENTORY RESTS AT 332.518 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 FELL BY A SMALL SIZED 843 CONTRACTS from 219,336 DOWN TO 218,493 AND FURTHER FROM 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 JULY: 0 CONTRACTS FOR AUGUST: 0, FOR SEPT. 525  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 525 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE OI LOSS AT THE COMEX OF 843  CONTRACTS TO THE 525 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A SMALL LOSS OF 318 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES: 1.59 MILLION OZ!!! AND YET WE ALSO HAVE A STRONG DEMAND FOR PHYSICAL AS WE WITNESSED A FINAL STANDING OF GREATER THAN 30 MILLION OZ FOR JULY, A STRONG 7.475 MILLION OZ FOR AUGUST..  A HUGE 39.505  MILLION OZ  STANDING FOR SILVER IN SEPTEMBER… OVER 2 million  OZ STANDING FOR THE NON ACTIVE MONTH OF OCTOBER.,  7.440 MILLION OZ FINALLY STANDING IN NOVEMBER.  21.925 MILLION OZ STANDING IN DECEMBER , 5.845 MILLION OZ STANDING IN JANUARY. 2.955 MILLION OZ STANDING IN FEBRUARY,  27.120 MILLION OZ FOR MARCH., 3.875 MILLION OZ FOR APRIL  18.765 MILLION OZ FOR MAY  NOW 2.660 MILLION OZ FOR JUNE WITH JULY AT 20.775 MILLION OZ STANDING SO FAR.

 

 

RESULT: A SMALL SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE 6 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A SMALL SIZED 525 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)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 12.93 POINTS OR 0.44%  //Hang Sang CLOSED UP 88.41 POINTS OR 0.31%   /The Nikkei closed DOWN 31.67 POINTS OR 0.15%//Australia’s all ordinaires CLOSED UP .41%

/Chinese yuan (ONSHORE) closed DOWN  at 6.8833 /Oil UP TO 57.82 dollars per barrel for WTI and 65.36 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.8833 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8898 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/

Debt is crushing China.  (it is well over 40 trillion in USA dollars)

(zerohedge)

ii)This is very important:  China’s PPI signals a looming deflation threat originating in Chhina and spreading throughout the globe

(courtesy zerohedge)

iii)CHINA’S largest supplier of consumer goods has now warned that Chinese factories are in urgent and desperate shape due to many USA companies leaving  China for other destinations.

(COURTESY ZEROHEDGE)

 

 

4/EUROPEAN AFFAIRS

i)UK

Interesting 40% of all Brits are scared of a “no deal” Brexit and are stockpiling food ,medicine and clothes

(courtesy zerohedge)

ii)UK/FRANCE/USA/GERMANY/SYRIA

The UK and France accept Trump’s calls for more troops into Syria as Germany continues to rebuff the USA despite the fact that the USA protects Germany.
(zerohedge)

iii)UK Ambassador who insulted Trump as inept has resigned

(courtesy zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)LEBANON/USA/HEZBOLLAH

Trump sanctions two members f the Lebanese parliament as being members of Hezbollah

(zerohedge)

ii)TURKEY

This is an ongoing saga.  For our newcomers will be explain.  Israel discovered natural gas off of the coast of Haifa several years ago.  The Israeli;s realized that the discovery was heading into Cypriot waters and onto Greek waters. The discovery is huge and the amount of natural gas can probably heat all of Europe for 30 years as well as keep Israel and Cyprus in a self sustaining mode with respect to energy.  In 1974 Cyprus was invaded by the Turks as there was a major problem between the two ruling factions, the Greeks and the Turks.  An armistice was agreed upon whereby the North belonged to Northern Cyprus and the Southern part and its capital Nicosia belong to the Greek side.  The problem is that Turkey never recognized the agreement.  Now the Turks want the natural gas and oil from that discovery and they are attacking ships doing the drilling.\\The EU now wants to sanction Turkey after a second drilling ship has been detained in Cypriot waters by the Turks.

(zerohedge)

iii)TURKEY/SYRIA
Bankrupt Turkey is again set to invade the North West part of Syria as it looks like that there is a new offensive in Idlib province headed by the SA.  The SAA is backed by the USA
(courtesy zerohedge)

iv)TURKEY RUSSIA/ USA/NATO

The deal has been completed: Russia delivers the S 400 SAMS to Turkey. As indicated before Trump is furious and now let us see how he will do
( zerohedge)

6. GLOBAL ISSUES

 

7. OIL ISSUES

 

 

8 EMERGING MARKET ISSUES

 

i)VENEZUELA/

 

 

 

9. PHYSICAL MARKETS

i)China adds 10 tonnes to its official reserves.  We know that they produce around 400 tonnes per year or 33 tonnes per year.  Not one oz leaves so you know that they do not include all of their purchases and/or production into reserves.  It is stored at official banks and they will decide sometime in the future to include those into official status.

(Pakiam/Bloomberg/GATA)

ii)Wall Street worried about USA currency intervention?

( Bloomberg/GATA)

iii)Gold is trading much better during these summer months

( USAGold./GATA)

iv)Kiener sells it all as he states that Governments are aggressively manipulating all financial assets including gold/silver.

(Kiener/Bloomberg/GATA)

v)interesting reading:  as I commented to you on Monday, gold smuggling to India and also to Japan is a very lucrative business and it is a symptom of government’s own war on gold

(courtesy Bullion star)

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

 

 

 

MARKET TRADING//USA

a)Market trading/THIS MORNING/USA

Powell unexpectedly dovish and no doubt he will cut rates

( zerohedge)

II)MARKET TRADING/USA/late trading

Usually the extra ordinary measures used by government once the debt ceiling has been reached is a full 7 months.  They officially reached the debt ceiling on the 2nd of MARCH 2018… which should put the drop dead date around the first week of October.  Government has been glowing with reports of increasing jobs and wage growth and that somehow has not been translated where it is needed most…tax collection.  It seems that our boys may run out of money by the first week of September..one month early….
(zerohedge)

 

ii)Market data/USA

iii)USA ECONOMIC/GENERAL STORIES

i)Trump backs away from supporting the Hong Kong protests in the hope of reviving the trade talks with Beijing.

(zerohedge)

ii)The complicated mess of Obamacare is to get an appellant court hearing today which will eventually lead to the entire removal of Obamacare.

(zerohedge)

iii)Interesting:  Trump has asked two board nominees for their views on the dollar.  He wants it lower

(courtesy zerohedge)

iv)Bill Blain takes a close look at Boeing and how it might fail:(zerohedge)

SWAMP STORIES

FOUR commentaries on Jeffery Epstein…he may bring down many major Republican and Democrats.
(courtesy Watson, Michael Snyder, Ann Coulter…  plus others)
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 934 CONTRACTS TO A LEVEL OF 591,164 ACCOMPANYING THE SMALL GAIN OF $0.60 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  STRONG SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 4866 EFP CONTRACTS WERE ISSUED:

 FOR AUGUST; 4841 CONTRACTS: DEC: 25   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  4866 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: 5800 TOTAL CONTRACTS IN THAT 4866 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A SMALL SIZED 934 COMEX CONTRACTS.  THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD TO CONTAIN THE PRICE RISE. 

 

NET GAIN ON THE TWO EXCHANGES ::  5800 CONTRACTS OR 580,000 OZ OR 18.04 TONNES.

YESTERDAY I REPORTED TO YOU ON THIS DEVELOPMENT:

“THE IS BECOMING QUITE ALARMING:  FOR THE PAST 10/11 TRADING DAYS, WE HAVE WITNESSED AT LEAST A 6,000 CONTRACT DIFFERENTIAL BETWEEN THE PRELIMINARY OI NUMBER AND THE FINAL OI NUMBER OF GOLD ON NINE OF THOSE SESSIONS. TODAY IT WAS IN EXCESS OF 8,000 CONTRACTS. ALL OF THE DIFFERENCE OCCURS IN THE FRONT MONTH OF AUGUST . THIS IS HIGHLY MANIPULATIVE AND FRAUDULENT.  THE CFC REFUSES TO SUPPLY ANY ANSWER TO THIS.

THEY DID NOT DISAPPOINT US AGAIN TODAY AND THUS FOR THE PAST 12 TRADING DAYS WE HAVE HAD A HUGE DISCREPANCY BETWEEN THE PRELIMINARY OI AND THE FINAL OI…ALTHOUGH TODAY IT WAS SLIGHTLY LESS THAN 6000 CONTRACTS. SOMETHING IS SERIOUSLY WRONG AT THE GOLD COMEX.”

TODAY THE DISCREPANCY WAS SLIGHTLY LESS THAN 3,000 CONTRACTS.

We are now in the NON  active contract month of JULY and here the open interest stands at 50 CONTRACTS as we LOST 26 contracts.  We had 43 notices filed yesterday so we surprisingly  gained  17 contracts or 1700 oz of gold that will stand for delivery as there appears to be some gold at the comex  as they will now try their luck on finding the fast vanishing supplies of physical gold over here. We usually witness queue jumping in silver immediately after first day notice but not gold.  That changed today. The next big active month for deliverable gold is August and here the OI FELL by a strong 16,121 contracts DOWN to 379,353. The next delivery month is Sept and here the Oi increased by 50 contracts up to 179 contracts. After Sept, is Oct and here the OI rose by 768 contracts to 16,931.

 

 

 

 

TODAY’S NOTICES FILED:

WE HAD 22 NOTICES FILED TODAY AT THE COMEX FOR  2200 OZ. (0.0684 TONNES)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total COMEX silver OI FELL BY A FAIR SIZED 843 CONTRACTS FROM 219,336 DOWN TO 218,493 (AND FURTHER FROM 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  COMEX LOSS OCCURRED DESPITE A 6 CENT GAIN IN PRICING.//YESTERDAY.

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF JULY.  HERE WE HAVE 554OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 175 CONTRACTS.  WE HAD 176 NOTICES FILED YESTERDAY SO WE GAINED 1 CONTRACTS OR AN ADDITIONAL 5,000 OZ OF SILVER WILL ATTEMPT TO STAND AT THE COMEX…. AND THESE GUYS REFUSED TO MORPH INTO A LONDON BASED FORWARD AS WELL AS NEGATING A FIAT BONUS. LET US WAIT AND SEE IF SUCCESSFUL IN OBTAINING PHYSICAL METAL ON THIS SIDE OF THE POND. AFTER JULY WE HAVE THE NON ACTIVE MONTH OF AUGUST AND HERE WE GAINED  12 CONTRACTS UP TO 1155.  THE NEXT BIG ACTIVE DELIVERY MONTH AFTER AUGUST IS SEPT AND HERE THE OI FELL BY 2122 CONTRACTS DOWN TO 153,404 CONTRACTS.

 

 

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 13 notice(s) filed for 65,000 OZ for the JULY, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY: 448,215  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  341,395  contracts

 

 

 

 

 

INITIAL standings for  JULY/GOLD

JULY 10/2019

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  

nil

 

No of oz served (contracts) today
22 notice(s)
 2200 OZ
(0.0684 TONNES)
No of oz to be served (notices)
28 contracts
(2800 oz)
0.0870 TONNES
Total monthly oz gold served (contracts) so far this month
771 notices
77100 OZ
2.398 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 0 kilobar entries

 

 

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

 

we had 0 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into Everybody else: nil  oz

 

 

 

total gold deposits: nil  oz

 

very little gold arrives from outside/ NO amount  arrived   today

we had 0 gold withdrawal from the customer account:

 

 

total gold withdrawals; nil   oz

 

 

i) we had 0 adjustment today

FOR THE JULY 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 22 contract(s) of which 5 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

To calculate the INITIAL total number of gold ounces standing for the JULY /2019. contract month, we take the total number of notices filed so far for the month (771) x 100 oz , to which we add the difference between the open interest for the front month of  JULY. (50 contract) minus the number of notices served upon today (22 x 100 oz per contract) equals 79,900 OZ OR 2.4852 TONNES) the number of ounces standing in this NON active month of JULY

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

No of notices served (771 x 100 oz)  + (50)OI for the front month minus the number of notices served upon today (22 x 100 oz )which equals 79,9000 oz standing OR 2.4852 TONNES in this  active delivery month of JUNE.

We GAINED 17  contracts or an additional 1700 oz will stand as these guys refused to morph into London based forwards as well as negating a fiat bonus. Somebody was in need of physical gold badly on this side of the pond…VERY UNUSUAL TO SEE QUEUE JUMPING THIS EARLY IN THE UP FRONT JULY CONTRACT MONTH.

 

 

 

 

 

 

SURPRISINGLY LITTLE TO NO  GOLD HAS BEEN ENTERING THE COMEX VAULTS AND WE HAVE WITNESSED THIS FOR THE PAST YEAR!!  WE HAVE ONLY 10.0438 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 2.4852  TONNES OF GOLD STANDING// THEY SEEM TO BE USING CONSIDERABLE GOLD VAPOUR TO SETTLE UPON UNSUSPECTING LONGS.

 

 

 

 

total registered or dealer gold:  322,910.634 oz or  10.0438 tonnes 
total registered and eligible (customer) gold;   7,696,711.704 oz 239.40 tonnes

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 JULY

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
JULY 10 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 201,587.154 oz
CNT
HSBC

 

 

Deposits to the Dealer Inventory
NIL oz

 

Deposits to the Customer Inventory
nil oz
No of oz served today (contracts)
13
CONTRACT(S)
(65,000 OZ)
No of oz to be served (notices)
541 contracts
 2,705,000 oz)
Total monthly oz silver served (contracts) 3614 contracts

18,070,000 oz)

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

**

 

we had 0 inventory movement at the dealer side of things

 

 

total dealer deposits: NIL  oz

total dealer withdrawals: nil oz

we had  0 deposits into the customer account

into JPMorgan:  nil  oz

ii)into everybody else:  nil oz

 

 

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

JPMorgan now has 153.4 million oz of  total silver inventory or 50.36% of all official comex silver. (153.4 million/304.6 million

 

 

 

 

total customer deposits today:  6,042.400  oz

 

we had 2 withdrawals out of the customer account:

 

i) out CNT: 23,383.264 oz

 

iii) Out of HSBC:  178,203.830 oz

 

 

 

 

 

total 201,587.154  oz

 

we had 0 adjustments :

 

 

 

total dealer silver:  93.631 million

total dealer + customer silver:  306.939 million oz

 

The total number of notices filed today for the JULY 2019. contract month is represented by 13 contract(s) FOR 65,000 oz

To calculate the number of silver ounces that will stand for delivery in JULY, we take the total number of notices filed for the month so far at 3614 x 5,000 oz = 18,070,000 oz to which we add the difference between the open interest for the front month of JULY. (554) and the number of notices served upon today (13 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JULY/2019 contract month: 3614(notices served so far)x 5000 oz + OI for front month of JULY(554) number of notices served upon today (13)x 5000 oz equals 20,775,000 oz of silver standing for the JULY contract month.

WE GAINED 5 CONTRACTS OR AN ADDITIONAL 5,000 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 JOINING GOLD!.

 

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 13 notice(s) filed for 65,000 OZ for the JULY, 2019 COMEX contract for silver

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  75,769 CONTRACTS

 

 

CONFIRMED VOLUME FOR YESTERDAY: 55,919 CONTRACTS..

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 55,919 CONTRACTS EQUATES to 279 million  OZ 39.9 OF ANNUAL GLOBAL PRODUCTION OF SILVER..makes sense!!

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

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

 

end

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

 

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV RISES TO -0.56% JULY 10/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.59% to NAV (JULY 10/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -0.56%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 13.81 TRADING 13.27/DISCOUNT 3.94

END

And now the Gold inventory at the GLD/

JULY 10//WITH GOLD UP $11.65 A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER GOLD DEPOSIT OF 6.46 TONNES/INVENTORY RESTS AT 800.54 TONNES

JULY 9/WITH GOLD UP 70 CENTS, A HUGE PAPER WITHDRAWAL OF 2.89 TONNES WHICH WAS USED IN THE FUTILE RAID ON GOLD AND SILVER THIS MORNING//INVENTORY RESTS AT 794.08 TONNES

JULY 8/ WITH GOLD DOWN 35 CENTS A HUGE WITHDRAWAL OF 1.47 TONNES FROM THE GLD/INVENTORY FALLS TO 796.97 TONNES

JULY 5TH/WITH GOLD DOWN $19.50/NO CHANGES IN GOLD INVENTORY AT THE GLD//INV RESTS AT 798.44 TONNES

JULY 3// WITH GOLD UP $12.60 TODAY A SURPRISE WITHDRAWAL OF 1.76 TONNES FROM THE GLD//INVENTORY RESTS AT  798.44

 

JULY 2. WITH GOLD UP $18.90 A HUGE “PAPER” DEPOSIT OF 6.16 TONNES INTO THE GLD/INVENTORY RESTS AT 800.20 TONNES

JULY 1: WITH GOLD DOWN $24.70 A HUGE “PAPER GOLD” WITHDRAWAL OF 1.76 TONNES FROM THE GLD/INVENTORY RESTS TONIGHT AT 794.04 TONNES

JUNE 28/WITH GOLD UP $.90 TODAY: ANOTHER 2.05 TONNES OF PAPER GOLD REMOVED AND THIS GOLD WAS USED IN ATTACKING GOLD AT THE COMEX/INVENTORY RESTS AT 795.80 TONNES

JUNE 27/WITH GOLD DOWN $6.10: ANOTHER HUGE WITHDRAWAL OF 1.76 PAPER TONNES FROM THE GLD INVENTORY/INVENTORY RESTS AT 797.61 TONNES

JUNE 26/WITH GOLD DOWN $3.00: WE HAD A HUGE WITHDRAWAL OF 2.37 TONNES FROM THE GLD/INVENTORY RESTS AT 799.61 TONNES

JUNE 25/WITH GOLD UP $1.30 (AND WAY UP BEFORE THE BANKERS WHACKED) WE WITNESSED ANOTHER 1.95 TONNES OF PAPER GOLD ADDED TO THE GLD INVENTORY//INVENTORY RESTS AT 801.98 TONNES

JUNE 24/WITH GOLD UP $18.00 A MONSTROUS PAPER DEPOSIT OF 34.93 TONNES/INVENTORY RESTS AT 799.03 TONNES

JUNE 21/WITH GOLD UP $  2.90, NO CHANGE IN GOLD INVENTORY: INVENTORY RESTS AT: 764.10 TONNES

June 20/WITH GOLD UP $47.95, NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 764.10 TONNES

JUNE 19 WITH GOLD DOWN $1.65: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 764.10 TONES

JUNE 18/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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

JULY 10/2019/ Inventory rests tonight at 800.54 tonnes

*IN LAST 620 TRADING DAYS: 134/22 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 520 TRADING DAYS: A NET 31.46TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

Now the SLV Inventory/

JULY 10/WITH SILVER UP 9 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.518 MILLION OZ//

JULY 9/WITH SILVER UP A SMALL 7 CENTS A GIGANTIC INVENTORY GAIN OF 4.026 MILLION OZ/ INVENTORY RESTS AT 332.518 MILLION OZ AND NOW IT SHOULD BE QUITE CLEAR THAT THE SLV ( AND GLD ARE FRAUDS)

JULY 8/WITH SILVER UP 7 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 328,492 MILLION OZ

JULY 5/WITH SILVER DOWN 32 CENTS WE STRANGELY HAD A HUGE INVENTORY GAIN OF 2,234 MILLION OZ//INVENTORY RESTS AT 328.492 MILLION OZ

JULY 3 WITH SILVER UP 10 CENTS A HUGE INCREASE IN INVENTORY..INVENTORY RESTS AT 326.151 MILLION OZ

JULY 2/WITH SILVER UP 4 CENTS TODAY: NO CHANGES IN SILVER INVENTORY/INVENTORY RESTS AT 323.330 MILLION OZ//

JULY 1/ WITH SILVER DOWN 16 CENTS: A SURPRISING DEPOSIT OF 936,000 OZ INTO THE SLV/INVENTORY RESTS TONIGHT AT 323.330 MILLION OZ/

JUNE 28/WITH SILVER UP 6 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 322.394 MILLION OZ//

JUNE 27/WITH SILVER DOWN 7 CENTS: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.575 MILLION OZ INTO THE SLV/INVENTORY RESTS AT 322.394 MILLION OZ//

JUNE 26/WITH SILVER UP 17 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.819 MILLION OZ/

JUNE 25/WITH SILVER DOWN 25 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.819 MILLION OZ.

JUNE 24/WITH SILVER UP 11 CENTS: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.819 MILLION OZ//

JUNE 21/WITH SILVER DOWN 22 CENTS: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.819 MILLION OZ//

JUNE 20/WITH SILVER UP 53 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 319.819 MILLION OZ/

JUNE 19/WITH SILVER DOWN 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 319.070 MILLION OZ/

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 XXX CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 316.775 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//

 

JULY 10/2019:

 

 

Inventory 332.518 MILLION OZ

LIBOR SCHEDULE AND GOFO RATES:

 

 

 

YOUR DATA…..

6 Month MM GOFO 2.20/ and libor 6 month duration 2.26

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

G0LD LENDING RATE: + .06

 

XXXXXXXX

12 Month MM GOFO
+ 2.14%

LIBOR FOR 12 MONTH DURATION: 2.27

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.13

end

 

PHYSICAL GOLD/SILVER STORIES

 

end
i) GOLDCORE BLOG/Mark O’Byrne

Why the Gold Rally Is Set to Run

A confluence of factors is leading to a rally in gold prices that could last for several years.

It’s all systems go for gold investors.

The bullion market is stirring from a multiyear slumber and looks set to enter a sustained rally, experts say. Double-digit increases within the next 18 months may be only the start of the price surge.

“[W]e believe there is a very good chance that this marks the beginning of a new gold bull market,” says gold market veteran Joe Foster, portfolio manager for the VanEck International Investors Gold Fund. Foster says the run is “likely to last several years.”

Full article via The Street here

GOLDNOMICS PODCAST (Episode 12)

Watch Podcast Here or Listen on Apple PodcastsSoundCloud or Blubrry

News and Commentary

Gold Dips as Dollar Ticks Higher, All Eyes on Fed

Wall Street Weighs Wild-card Risk of U.S. Move to Weaken Dollar

London Gold Trading Volumes Surged in Late June as Prices Rocketed – LBMA

LBMA Gold Prices (AM/ PM Fix – USD, GBP & EUR)

09-Jul-19 1387.90 1391.55, 1113.51 1115.61 & 1239.39 1241.54
08-Jul-19 1404.90 1400.10, 1121.11 1119.38 & 1251.20 1248.19
05-Jul-19 1414.40 1388.65, 1126.43 1110.92 & 1255.99 1237.70
04-Jul-19 1415.25 1414.90, 1125.41 1125.55 & 1254.19 1254.59
03-Jul-19 1425.10 1413.50, 1133.52 1123.31 & 1262.78 1251.65
02-Jul-19 1393.10 1391.05, 1105.01 1101.02 & 1233.59 1231.77
01-Jul-19 1390.05 1390.10, 1099.81 1099.99 & 1227.41 1227.74
28-Jun-19 1413.20 1409.00, 1114.87 1108.18 & 1241.07 1237.81

Buy, Transfer & Store Gold and Silver in Zurich, Switzerland – Six Months Free Storage & Complimentary Silver Eagle – Info Here

Receive Our Free Daily or Weekly Updates by Signing Up Here

Mark O’Byrne
Executive Director

ii) Physical stories courtesy of GATA/Chris Powell

China adds 10 tonnes to its official reserves.  We know that they produce around 400 tonnes per year or 33 tonnes per year.  Not one oz leaves so you know that they do not include all of their purchases and/or production into reserves.  It is stored at official banks and they will decide sometime in the future to include those into official status.

(Pakiam/Bloomberg/GATA)

China announces seventh month of adding to gold reserves

 Section: 

China’s Gold Hoard Swells

By Ranjeetha Pakiam
Bloomberg News
Monday, July 8, 2019

Central banks are going after gold in 2019, boosting holdings as economic growth slows, trade, and geopolitical tensions rise, and some authorities seek to diversify their reserves away from the dollar.

The People’s Bank of China said today it raised reserves for a seventh month in June, adding 10.3 tons, following the inflow of almost 74 tons in the six months through May. Last week Poland said it more than doubled its gold assets over this year and last, becoming the top holder in central Europe. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-07-08/central-banks-gold-ru..

END

Wall Street worried about USA currency intervention?

(courtesy Bloomberg/GATA)

Wall Street dons a ‘tinfoil hat’ to ponder U.S. currency intervention

 Section: 

Give that hat back!

* * *

By Katherine Greifeld
Bloomberg News
Monday, July 8, 2019

A growing chorus of Wall Street foreign-exchange analysts is writing about the risk that U.S. President Donald Trump may move beyond words in his quest for a weaker dollar.

From ING to Canadian Imperial Bank of Commerce, more analysts in recent weeks have been openly contemplating the wild-card notion that the administration could intervene to cheapen the dollar. The research comes as Trump has intensified criticism of both the Federal Reserve and other countries’ currency practices. The U.S. leader tweeted last week that Europe and China are playing a “big currency manipulation game” and called on the U.S. to “MATCH, or continue being the dummies.” …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-07-08/wall-street-dons-tinf…

END

Gold is trading much better during these summer months

(courtesy USAGold./GATA)

No summer doldrums for gold this year, USAGold’s News & Views says

 Section: 

8:50p ET Monday, July 8, 2019

Dear Friend of GATA and Gold:

Market sentiment is changing fast in favor of investing in gold, even sentiment in the Financial Times, according to USAGold’s News & Views newsletter for July. No summer doldrums for the monetary metal this year, the newsletter says. It’s headlined “Summer Doldrums Turned Upside Down” and it’s posted at USAGold here:

https://www.usagold.com/cpmforum/nv1007-july19/

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

END

Kiener sells it all as he states that Governments are aggressively manipulating all financial assets including gold/silver.

(Kiener/Bloomberg/GATA)

Governments ‘aggressively manipulating’ all financial assets, Swiss Asia Capital’s Kiener tells Bloomberg

 Section: 

10:27a ET Tuesday, July 9, 2019

Dear Friend of GATA and Gold:

Bloomberg television last week let Swiss Asia Capital Managing Director Juerg Kiener mention market manipulation in the same breath with gold.

It happened on the “Bloomberg Markets: Asia” program July 4, where, asked about gold’s prospects, Kiener said, “We’ve been now in a period where we’ve been aggressively manipulating almost all financial assets.” With bonds increasingly carrying negative interest rates, Kiener continued, gold becomes more attractive, especially since central banks have come to think that printing money and negative rates are “God’s work.”

The interview with Kiener is 7 minutes long and can be viewed at Bloomberg here:

https://www.bloomberg.com/news/videos/2019-07-09/swiss-asia-capital-s-ki…

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

END

iii) Other physical stories:

interesting reading:  as I commented to you on Monday, gold smuggling to India and also to Japan is a very lucrative business and it is a symptom of government’s own war on gold

(courtesy Bullion star)

Gold Smuggling to India & Japan is a Symptom of Governments’ War on Gold

Submitted by BullionStar.com

Smuggling gold to India and Japan has become a lucrative business for many dealers and middlemen across Asia. It is widely known that demand for physical gold by Asian populations is insatiable. From the estimated 25,000 tonnes of gold held by India’s population to the more than 20,000 tonnes of gold calculated to be held by China’s population, these two countries alone hold nearly one quarter of the world’s known above ground gold stocks.

However, beyond China and India, gold is central to almost all Asian societies and cultures. While sometimes forgotten, Japan became one of the world’s largest gold market in the 1970s and 1980s when it imported thousands of tonnes of gold to satisfy its investment boom in gold. Hong Kong’s gold market, one of Asia’s oldest, is and has been a physical gold hub for more than 100 years. Adding in South Korea, Taiwan, Singapore, and Thailand, and the Asian region then is truly the centre of the physical gold world.

But while some Asian countries’ governments, such as Singapore and Hong Kong, embrace a free-market ethos to supporting their gold markets and allowing unhindered imports and non-distorted saving and investment in gold with zero Goods and Services Tax on investment gold, other Asian economies, such as India and Japan, still throw up import barriers, taxes and penalties, distorting the free flow of gold, distorting their local gold prices, and creating what we then call gold smuggling.

1 kilo gold bars smuggled into Japan and seized by customs

The Incentive to Smuggle Gold to India an Japan

While the regional media in Asia readily documents the nearly daily instances of detected gold smuggling to India and gold smuggling to Japan, they rarely if ever consider the underlying problem. Gold smuggling is a symptom of a problem. And that problem is that these governments are imposing penal taxes, costs and frictions on the free ownership and free movement of gold, thereby distorting the ability of people to choose to save in invest in the ultimate form of money, which is and always has been gold.

The incentive for smugglers is as follows. When an economy taxes gold imports at entry, such as India, the gold import tax or gold import duty distorts the international gold price and inflates the price of gold within that country by the amount of the tax. If gold can be bought outside the country, and smuggled into the country while avoiding the import tax, it can be sold by the smuggler at the tax inclusive price and the difference earned as profit.

The same is true of the GST on gold in Japan which inflates the local gold price. If gold can be purchased outside the country at the international price, smuggled in, and sold at the local gold price, the difference can be kept by the smuggler.

Distortions on the Gold Price

With offending countries, such as India and Japan, now doubling down with ever higher distortions against the free flow of gold, smuggling of gold to India and Japan may increase further. As will the associated costs of the surveillance of smuggling and the bureaucracy of anti-smuggling regulations.

In India, where the government wages a perennial battle against gold but consistently loses the war, the finance minister has just shocked the bullion markets by announcing a budget hike on the import duty on gold and other precious metals from 10% to 12.5%. Prior to the budget, India’s long-suffering gold bullion jewelry dealers had been calling for a reduction in the gold import rate, not a hike, and the government not surprisingly ignored them, stepping up its war on gold.

Seized gold bars smuggled into Japan 

Further east in Tokyo, Japan is set to further damage its consumption sector this coming October 2019 when it implements an across the board hike in the GST consumption tax from the current 8% to 10%, a tax hike which will include a 10% GST on gold. Japan’s consumption tax on gold had already been raised from 5% to 8% in April 2014, and October’s coming tax hike will effective double the tax distortion on the local gold price within a five-year period.

 

Gold Import Duties are Illogical and Ineffective

The imposition of import duty on gold and GST on gold is illogical and ineffective. Raising gold import taxes and gold consumption taxes only increases gold smuggling to India and Japan, as would be expected. Consider the example of Japan when it raised its gold consumption tax from 5% to 8% in April 2014. For the 12 months to June 2014, there were only 8 detected gold smuggling attempts compared to 467 detected smuggling attempts in the year to June 2017.

Most gold smuggled into India and Japan is probably never detected. Japanese authorities seized just over 2 tonnes of gold in 2018, but detected cases of smuggling gold seem like only a fraction of the amount of gold smuggled in. Looking at the huge level of gold exports in Japan which can’t be accounted for by gold imports, the Japanese Finance Ministry estimates that in 2017, there could have been at least 160 tonnes smuggled  into the country. And with Japan being a group of islands, most smuggled gold is flown in hidden on passengers on flights from the likes of South Korea, China, Hong Kong, Taiwan, and Singapore.

India on the other hand has 15,000 kms of land borders with Pakistan, China, Nepal, Bhutan, Burma, Bangladesh as well as neighbouring Sri Lanka. And plenty of daily flights from Dubai and the likes of Thailand and Singapore. Up to 95 tonnes of gold was smuggled into India in 2018, according to the World Gold Council, but this is a conservative estimate since the figure could be any amount given its porous land borders.

 

The War On Gold Smuggling is a War on Gold

In theory, the main reasons for import duties are to raise revenue for governments or to protect domestically produced goods. Likewise, the rationale for consumption taxes is to raise government revenue or to deter populations from harmful consumption. Given that India is not a large producer of gold from mining and that owning gold is not harmful to a population, the respective governments of India and Japan claim that the purpose of India’s gold import duties and Japan’s consumption tax on gold are to raise revenue.

But the targeting of gold, which is money, goes beyond mere revenue collections, because the governments in question are statist and interventionalist in nature and have a fear and hatred for gold. This fear and hatred is precisely because gold is a far better form of money than their national fiat currencies, and a far better form of wealth protection against their depreciating fiat currencies.

These countries’ populations know this instinctively and demonstrate this by their very real demand for physical gold bars and coins, and thus these governments are waging a war against gold and a war against the freedom of their citizens to make free market choices on how they can save and invest.

Government imposition of import and consumption taxes on gold and the associated penalties for smuggling are the tools of statists who despise the nature of gold, which is that gold provides economic freedom and liberty. Ironically, the more governments crack down on the freedom of populations to invest in gold by imposing import and consumption taxes, stiffening smuggling penalties and beefing up border and airport surveillance, the more these governments inadvertently endorse gold as a superior wealth preserver, and a superior store of value and safe haven compared to the ever decaying value of their fiat currencies.

Confiscated gold from smuggling being displayed by Indian police

Gold is Borderless

Gold is borderless and international and flows to where its most wanted. It is cherished for its lack of counterparty risk precisely because it is not issued by any monetary authority, government of other issuing authority. With their tax distortions and draconian anti-smuggling surveillance systems, these governments are not only penalizing their own nations, but penalizing all nations and all peoples who want to use the ultimate form of money that is gold, while waging a war against the economic freedom to save and invest in the true asset that has been real money for thousands of years.

It is thus ethically and morally repulsive for these governments to try to stop people escaping the financial repression that these same governments and their central banks have themselves created by interfering in their citizens rights to save and invest in gold while penalizing and criminalizing those who wish to do so. The gold suppression is also affecting gold demand negatively and is thus also affecting the wider gold market negatively.

Gold smuggling is a symptom of a problem. And that problem is that governments impose penal taxes, costs and frictions on the free ownership and movement of gold, distorting the ability of people to choose to save in invest in the ultimate form of money, gold. All to protect their artificially inflated systems of limitless debt-based money supplies and depreciating fiat currencies that stifle and control their populations’ savings and investment choices.

This article was originally published on the BullionStar.com website under the title “Gold Smuggling to India & Japan is a Symptom of Governments’ War against Gold“.

end

Bill Holter

3:37 PM (11 minutes ago)

to Harvey
Gold going to 87,000 dollars per oz??see why Bill Holter and the legendary Jim Sinclair believe so!!
(courtesy Bill Holter/Jim Sinclair)

or here:

 

Dollar Will Be Sliced in Half – Bill Holter & Jim Sinclair

By Greg Hunter On July 10, 2019

Near the beginning of this year, legendary investor Jim Sinclair and his business partner Bill Holter said the reset would start in June. Is the recent jump in gold prices confirming this? Sinclair says yes and predicts a two-tier reset in the next few years. . . . The first will be a devaluing of the dollar. Sinclair explains, “The reset has already started. . . . The only thing holding up the dollar is its universal use as a contract settlement mechanism in Russia and China and everywhere else, and that simply is not happening anymore. . . . The dollar is going lower. . . . In the first reset, the dollar will get sliced in half.  That means the little guy will get sliced in half in terms of his buying power. You need to look at gold, not a speculation, but as a savings account. If the dollar gets sliced in half, you basically double the value (of your gold) if not more. I think much more. . . . In the second reset, that will take gold to a price where it will balance the ability to pay global debt. That’s the major move coming forward. Right now, we are definitely going back to the $1,850 and $1,925 area per ounce for gold. The second reset, you can pick any price you want for gold. Pick a high price.”

With the national debt officially at $22 trillion, and the additional “missing” $21 trillion discovered by Economics Professor Mark Skidmore at Michigan State University in 2017, you have a huge amount of debt and dollars floating around. This fact makes Sinclair’s prediction of $50,000 per ounce gold a few years ago look conservative. Bill Holter has done the math and says it simply must go much higher. Holter explains, “If you take the 8,300 tons the U.S. supposedly has, and I did this math last year when the official national debt was approaching $21 trillion, gold would need to be $87,000 per ounce to cover just the on books debt. I am not talking about the “missing” money, not future guarantees, pensions, Social Security and things like that. . . . So, the number is $87,000 per ounce for gold or multiples of that. What’s going to happen? The people who are running this understand this as much as we do, and the system is going to go down. So, why not create a false flag and kick the table over so you can point at it and say our policies would have worked if it wasn’t for whatever event they come up with.”

Can they put this off until after the 2020 election? Holter says, “It just might be one big last kick of the can . . . but prepare yourself and prepare your family. Have extra food. Have a way to purify water. Make a plan where you can go it alone for a couple of weeks or a couple months or more. That is what is coming for us all. Trump is going to preside over a bankruptcy. When he was elected, we predicted that he would preside over the bankruptcy of the United States. . . .The math says it is guaranteed.”

Sinclair says, “He is a master at bankruptcy. You maintain the item that is a producing asset, and you ‘jubilee’ or get rid of debt that has failed. You go through with a machete and take everything down that does not produce. . . . We have been warning people to be their own central banks and be able to take care of themselves for no less than 90 days.”

Join Greg Hunter as he goes One-on-One with financial writer Bill Holter and legendary investor Jim Sinclair of JSMineset.com.

-END-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

 

end

 

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 6.8833/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.8898   /shanghai bourse CLOSED DOWN 12.93 POINTS OR 0.44%

HANG SANG CLOSED UP 88.41 POINTS OR 0.31%

 

2. Nikkei closed DOWN 31.67 POINTS OR 0.15%

 

 

 

 

3. Europe stocks OPENED ALL RED EXCEPT ITALY

 

 

 

USA dollar index UP TO 97.45/Euro RISES TO 1.1218

3b Japan 10 year bond yield: RISES TO. –.12/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.92/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 59.22 and Brent: 65.56

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.30%/Italian 10 yr bond yield UP to 1.77% /SPAIN 10 YR BOND YIELD UP TO 0.47%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.07: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 2.28

3k Gold at $1396.10 silver at: 15.10   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 15/100 in roubles/dollar) 63.66

3m oil into the 59 dollar handle for WTI and 65 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 108.97 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 .9917 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1124 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 RISING to 0.30%

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 2.09% early this morning. Thirty year rate at 2.58%

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

6.  TURKISH LIRA:  UP  TO 5.7492..

Global Markets Extend Drop As Traders Await Powell

With yesterday’s late ramp failing to push the Dow into the green, the Industrial Average is set to open lower for the 4th day – it’s longest stretch of losses since March – as global stocks treaded water on Wednesday amid depressed volumes while Treasury yields rose around the globe and the dollar was steady, as investors waited to hear whether the world’s most powerful central banker would confirm or confound expectations for a U.S. rate cut this month. As a reminder, all eyes are on Powell today, as he kicks off two days of testimony in Congress, with traders hoping for further signals on the direction of Fed rates as markets price in a quarter-point reduction in July.

The MSCI index of world stocks was little changed after three days of losses, although Europe’s subdued start reflected pre-event caution rather than how the day would pan out. U.S. futures traded slightly lower, alongside European shares, as investors awaited Fed Chair Powell’s speech later today.

Europe’s Stoxx 600 index resumed a decline, down 0.3%, after briefly trimming losses following news that the European Commission cut its euro-area economic outlook, strengthening the case for more monetary stimulus as bad news tried desperately to be good news. This failed with a bang after French industrial production was substantially stronger than expected by consensus of 0.2%, with total output rising 2.1%, making the case for more easing weaker and hitting stocks.  Defensive sectors are among worst performers after leading the recent rally as bond yields continued to rebound. Real estate, food-and-beverage shares and utilities fell the most, while banks and energy shares rose. London’s FTSE edged up 0.2% and France also rose after better-than-expected French industrial data, while Germany’s Dax lagged with a loss of 0.4%.

 

Earlier in the session, Asian stocks edged up, led by technology and communications; markets in the region were mixed, with Taiwan advancing and India retreating. Japan’s Topix fell 0.5% for a third day of losses, as Recruit Holdings, Fanuc and Nintendo weighed on the gauge. Machine tool makers declined after a trade group reported that orders slumped the most in almost a decade. The Shanghai Composite Index declined 0.4%, with PetroChina and Industrial & Commercial Bank among the biggest drags while Chinese blue chips barely budged as data showed inflation remained subdued.  China’s factories barely escaped deflation in June while consumer prices gained. The S&P BSE Sensex Index dropped 0.3%, driven by Larsen & Toubro, Axis Bank and Tata Consultancy Services. U.S. President Donald Trump criticized India’s decision to impose higher tariffs on a slew of American goods.

While few expect fireworks, there is the possibility that Powell will surprise to the hawkish side today after last week’s stellar jobs report. Still, a worrying lack of inflation – as measured by the BLS if not real-world inflation which keeps rising – is one reason investors are counting on Powell to sound suitably dovish when he testifies to Congress on Wednesday. Futures still fully price in a 25-basis-point cut at the Fed’s July 30-31 meeting, but they no longer suggest a half-point move. They had implied a 25% probability of an aggressive cut before an upbeat U.S. jobs report on Friday.

“I think the market seems to be veering toward a less dovish message from Powell than was the prevalent a couple of weeks ago,” said BoNY Mellon strategist Neil Mellor, who still thought the Fed would cut by 25 basis points this month — the first U.S. cut since the financial crisis — but whether it keeps going was much less clear. “The real interest is what happens thereafter,” Mellor said. “If we are talking about a stronger dollar, then we have to bear in mind comments from President Donald Trump last week, who said, ‘Well, perhaps we should start manipulating the dollar.’”

Overnight, Atlanta Fed President Raphael Bostic said the central bank was debating the risks and benefits of letting the U.S. economy run “a little hotter.” Meanwhile, U.S. and Chinese trade officials held “constructive” talks on trade by phone on Tuesday, White House economic adviser Larry Kudlow said.

 

Oil and treasury yields jumped, as the cooling in rate fever saw bonds give back a little of their rally. Yields on two-year Treasuries rose to 1.917% from their recent low of 1.696% and Europe’s benchmark yields up around five basis points.  The Italian market is outperforming after the country obtained strong demand for its bonds.

That in turn has helped the dollar index against a basket of currencies rebound to 97.500 from a June low of 95.843. The dollar also gained to 108.92 yen though the brighter French data helped the euro gain to $1.1225 still down from its $1.1412 level of just a couple of weeks ago.  The Mexican peso began to recover after sliding on Tuesday when Finance Minister Carlos Urzua suddenly resigned, citing “extremism” in economic policy. The Canadian dollar was on the defensive before a Bank of Canada meeting, in case policymakers tried to slow the currency’s recent rally.

Elsewhere, gold fell 0.3% to $1,393.68 per ounce as the dollar gained, while Bitcoin rose back over $13,000.

Oil prices rose on Middle East tensions and news that U.S. stockpiles fell for a fourth week in a row. Brent crude futures gained 64 cents to $64.80. U.S. crude was up 82 cents to $58.65 a barrel. MSC Industrial and Bed Bath & Beyond are among companies reporting earnings.

Market Snapshot

  • S&P 500 futures down 0.2% to 2,977.50
  • STOXX Europe 600 down 0.2% to 387.30
  • MXAP up 0.1% to 159.01
  • MXAPJ up 0.4% to 522.16
  • Nikkei down 0.2% to 21,533.48
  • Topix down 0.2% to 1,571.32
  • Hang Seng Index up 0.3% to 28,204.69
  • Shanghai Composite down 0.4% to 2,915.30
  • Sensex down 0.3% to 38,598.04
  • Australia S&P/ASX 200 up 0.4% to 6,689.79
  • Kospi up 0.3% to 2,058.78
  • German 10Y yield rose 5.3 bps to -0.301%
  • Euro up 0.1% to $1.1224
  • Italian 10Y yield fell 5.1 bps to 1.378%
  • Spanish 10Y yield rose 1.9 bps to 0.439%
  • Brent futures up 1.8% to $65.29/bbl
  • Gold spot down 0.3% to $1,393.15
  • U.S. Dollar Index down 0.1% to 97.40

Top Overnight News from Bloomberg

  • President Trump has grown concerned that the strengthening U.S. dollar is a threat to his economic agenda and has asked aides to cast about for ways to weaken the greenback, according to people familiar with the matter
  • Jerome Powell is likely to leave Fed rate cuts firmly on the table when he appears before Congress this week, even though the latest U.S. jobs report dialed down the urgency to ease borrowing costs.
  • Looking at Italy’s debt market, you’d be forgiven for thinking that the embattled nation’s problems were firmly behind it. Bonds had their best week in more than six years, and yields are at the lowest since 2016, prompting the government to lock in bargains by issuing 50-year debt on Tuesday
  • U.K. MPs narrowly passed a measure aimed at stopping the next Prime Minister forcing the country out of the European Union without an agreement, against their wishes
  • U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke on the phone with their Chinese counterparts, marking the first high-level contact after their presidents agreed to resume trade talks
  • China’s factories barely escaped deflation in June while consumer prices gained
  • Oil jumped as a report showing a reduction in U.S. crude inventories tightened a supply outlook that’s being threatened by rising tension in the Middle East
  • Members of Britain’s Parliament delivered a sharp warning to the country’s next prime minister after narrowly passing a dramatic result Tuesday: they will not allow him to pursue a no- deal Brexit without a fight
  • French industrial output surged in May, indicating the euro area’s second-largest economy resisted the region’s broader manufacturing downturn. Industrial production jumped 4% from a year earlier, the strongest increase since 2017, beating even the most optimistic prediction in a Bloomberg poll of economists
  • The U.K. economy rebounded in May as car factories resumed work following Brexit-related shutdowns. GDP rose 0.3% after a decline in the previous month, the Office for National Statistics said Wednesday

Asian equity markets traded somewhat mixed following a similar lead from Wall St. as participants await fresh clues on Fed policy from the upcoming Fed Chair Powell congressional testimony and FOMC minutes release. ASX 200 (+0.4%) was led higher by outperformance in the tech sector and as financials rebounded from yesterday’s capital buffer pressure with the Big 4 also helped after S&P provided more favourable outlooks on their credit ratings, while Nikkei 225 (-0.1%) was indecisive with sentiment at the whim of a choppy currency. Elsewhere, Hang Seng (+0.3%) and Shanghai Comp. (-0.4%) lacked firm direction with initial upside seen after reports USTR Lighthizer and Treasury Secretary Mnuchin conducted a phone call with China Vice Premier Liu He which was said to have gone well and was constructive. However, the mainland briefly gave back the gains following liquidity outflows and as participants digested mixed inflation data in which PPI printed flat Y/Y which was softer than expected and lacked growth for the 1st time in nearly 3 years. Finally, 10yr JGBs were lower as they tracked the downside in T-notes and amid a lack of BoJ presence in the market today.

Top Asian News

  • Feud Atop Asia’s Biggest Budget Carrier Starts Getting Ugly
  • Thailand Is Taking Steps to Curb Inflows Amid Baht’s Rally

European indices are tentative this morning [Euro Stoxx 50 U/C], taking a similar stance to their Asia-Pac counterparts in awaiting testimony from Fed’s Powell later in the session. Once again, the Dax (-0.4%) is underperforming its peers, though not to the same extent as in the prior session, as BASF (-0.7%) continues to weigh after yesterdays profit warning as does Bayer (-1.0%) after the Co. state they are continuing, and on track with exiting the animal health business. Sectors are mixed with the notable outperformers being Energy names, in-line with the broader complex following yesterdays larger then expected API draw, while the Financial sector is also benefitting from some consolidation in Deutsche Bank after the Co’s restructuring plans were unveiled over the weekend (+2.1%), with other banking names being lifted as well this morning. As such, the FTSE MIB (+0.5%) is leading the bourses this morning with gains in the index stemming from strong Italian banking names this morning. Elsewhere, European semiconductors have benefitted from Taiwan Semiconductor’s strong monthly sales with the likes of Infineon (+2.0%), and STMicroelectronics (+2.2%) benefitting.

Top European News

  • Atlantia Said to Consider Taking 35-40% Stake in Alitalia: Sole
  • U.K. Economy Returns to Growth in May as Car Production Gains
  • Superdry Plunges After Warning of Sales Drop in Reset Year
  • Italy’s Wondrous Bonds Cover Up Budget Challenges Still Ahead

In FX, the Dollar is somewhat softer vs G10 counterparts on balance as the clock ticks down to the first semi-annual testimony from Fed Chair Powell and minutes to June’s FOMC policy meeting that in theory should be relatively redundant barring any major revelations that supplement or contradict the tone of his text and Q&A. The DXY just dipped under 97.350 and close to technical support around 97.312 (55 DMA) having held below/respected daily chart resistance at 97.680 yesterday.

  • CHF/GBP/EUR – The major outperformers, albeit marginal, with Usd/Chf drifting back down towards 0.9900 and the Franc also outpacing the Euro within a 1.1140-20 range despite some rare Eurozone data beats via French and Italian ip that have underpinned the single currency in Usd terms, but not threatened stops said to be in place on a break of 1.1240 or the 55 DMA (1.1233). Meanwhile, the Pound has rebounded a bit more firmly from another test of early 2019 ‘flash crash’ lows against the Buck and 0.9000+ vs the Euro in the wake of a raft of UK data, as firmer than forecast 3 month rolling and y/y GDP prints appear to have overshadowed misses in other metrics. Cable is nudging back up towards 1.2500, but could be capped by some option expiry interest spanning 1.2495 and the big figure.
  • CAD/NZD – The Loonie has bounced from recent lows vs its US peer against the backdrop of firm oil prices, but more in anticipation that the BoC will retain a hawkish stance or bias in comparison to the Fed chair. Usd/Cad has eased back towards 1.3100 with options indicating a 75 pip break-even for the policy pronouncements that coincide with Powell’s presentation, although his text will be released at 13.30BST and for previews of both events see the Ransquawk Research Suite. Elsewhere, the Kiwi has staged an even more impressive recovery from what looks to have been a stop-driven plunge overnight through 0.6600 vs the Greenback to circa 0.6570, and the allure of mega expiries at 0.6610 may well be the catalyst as 2.4 bn rolls off at the NY cut.
  • AUD/JPY/NOK – All on the defensive, as the Aussie only just survived a test of 0.6900 with the aid of cross-winds from the aforementioned Kiwi nosedive and Aud/Nzd reclaiming 1.0500+ status before reversing again, while the Yen got to within 2 pips of 109.00, but is now off worst levels as offers at the big figure remained untouched and hefty expiry interest (1.7 bn at the strike) also kept the headline pair in check. The Norwegian Krona weakened in wake of softer than expected inflation data, but Eur/Nok pulled up just shy of a key chart level in the form of the 100 DMA at 9.7147.

In commodities, WTI and Brent are firmer on the day and currently just below session highs, with WTI remaining around the USD 59.00/bbl level after the complex benefitted from the larger than expected headline API draw last night at -8.129mln vs. Exp. -3.1mln, with participants now looking to today’s EIA release for confirmation of this. An additional factor for this mornings upside is the ongoing weather situation in the Gulf of Mexico, where the NHC are currently stating that there is a 90% chance of a cyclone forming within the next 48 hours; as such multiple production platforms have begun evacuating workers and shutting production. As a reference point, the Gulf of Mexico accounts for around 15% of the US’s total production. Gold (-0.2%) remains capped below the USD 1400/oz level and has thus-far failed to benefit from the mild dollar weakness as participants await Fed Chair Powell’s testimony and the FOMC minutes later in the session. Elsewhere, a Brazilian court has ruled that Vale must remedy all damages from January’s dam collapse, with no monetary value being set as the judge did not believe it is yet possible to quantify the compensation figure.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior -0.1%
  • 8:30am: Powell Testimony to House Financial Services Panel Released
  • 10am: Wholesale Inventories MoM, est. 0.4%, prior 0.4%; Wholesale Trade Sales MoM, est. 0.3%, prior -0.4%
  • 10am: Fed’s Powell Testifies Before House Financial Services Panel
  • 1:30pm: Fed’s Bullard To Speak at Washington University in St. Louis
  • 2pm: FOMC Meeting Minutes

DB’s Jim Reid concludes the overnight wrap

Thanks for all your emails and calls yesterday about the future of research at DB after some difficult decisions were announced over the weekend about the firm’s direction. We want to reiterate that DB Research will remain at the forefront of the firm. As well as FIC, Macro, QIS, Data Science, and Thematic research, DB is still committed to providing extensive and top-quality Company Research coverage in Europe and the US. DB will combine Equity Research and Research Sales into a newly formed Company Research and Advisory Group to strengthen ongoing connectivity with institutional clients. So if you are a consumer of any of our research and have any questions, please let me know and we can try to answer them.

While a mild dose of risk aversion has returned to markets this week the reality is that it’s been very quiet for newsflow with investors mostly waiting for today’s main event. Indeed Fed Chair Powell is due to make his semi-annual monetary policy testimony before the House Financial Services Committee at 3pm BST this afternoon (10am EDT). As our US economists highlighted in their preview here , in the past the testimony had largely adhered to the outcomes of the latest FOMC meetings and on that we’re due to receive the latest FOMC minutes after Powell’s testimony. Our colleagues expect Powell to reiterate the relatively upbeat assessment of the labour market but if questioned more closely about the underlying details, they would not be surprised if Powell were to sound a mild note of caution about the recent downshift in hours worked. As for inflation, they expect Powell to reiterate the same concerns the FOMC highlighted at the last meeting, namely wage growth and weaker global growth holding down inflation around the world.

Friday’s employment report saw the market re-price back towards a 25bps cut at the meeting later this month (currently 27bps priced in) and it does feel like it would take a very big dovish surprise from Powell today to change that from here. However the Q&A with Congress in particular will warrant a close watch all the same. Yesterday, we got comments from Philadelphia Fed President Harker which were, at the margin, hawkish. He said that “there’s no immediate need to move rates in either direction at this point” and noted that trimmed-mean measures of inflation are at or near target. Harker is near the centre of the committee, so his hesitation to endorse a cut is significant.

Back to markets where yesterday the S&P 500 (+0.13%) squeaked out a positive gain despite trading in the red for the most of the session. The DOW (-0.08%) retreated slightly, largely due to poor performance by MMM (-2.06%), which has a large share in the index. There was better news for tech stocks, with the NASDAQ (+0.54%) retracing some of its recent underperformance to close higher. Again though, volumes were around 20% below the usual daily average. In Europe the STOXX 600 (-0.51%) also ended in the red while there was a sharper loss for the DAX (-0.85%) primarily as a result of a profit warning from BASF. Bond markets were also quiet with 10y Treasuries (+1.4bps) and Bunds (+1.2bps) both a whisker higher in yield – the latter unaffected by the ECB’s Lane reiterating that “substantial accommodation is still required.” BTPs (-5.2bps) were stronger after Italy’s reopening of its 50-year bond. As for credit, HY spreads in the US were +2bps wider while in commodities oil (+0.59%) was a shade higher. EM assets fell again, with FX and equities down -0.15% and -0.30%, but there were outsized moves in Mexican assets after Finance Minister Urzua resigned, citing dissent on economic policy issues. The peso weakened -1.15% versus the dollar and Mexico’s benchmark equity index slid -1.75%.

Overnight, Bloomberg has reported that US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke on the phone with their Chinese counterparts Vice Premier Liu He and Commerce Minister Zhong Shan, yesterday. China’s Ministry of Commerce confirmed the conversation in a brief statement this morning, saying the two sides “exchanged opinions on implementing the consensus reached in Osaka” by Presidents Xi Jinping and Donald Trump. Meanwhile, the White House economic adviser Larry Kudlow said that the discussions were “constructive,” and added that officials are planning more meetings but that no details have been confirmed while saying, “hopefully we can pick up where we left off but I don’t know that”. He also said that the US government would ease restrictions on Huawei by relaxing the licensing requirements and added that Xi had agreed with Trump to scale up purchases of US products, including soybeans and wheat, along with possibly energy as part of a “good-faith” move to show how open China is to resolving trade differences. Elsewhere, Kellyanne Conway, counsellor to President Trump, said yesterday before the news reports started pouring in about the phone call, that US officials will continue to speak with their Chinese counterparts on trade issues and perhaps make a trip there “shortly.”

This morning in Asia markets are largely trading higher with the Hang Seng (+0.32%) and Kospi (+0.61%) leading the gains while the Nikkei (-0.04%) and Shanghai Comp (-0.02%) are trading flattish in directionless trading. Elsewhere, futures on the S&P 500 are broadly unchanged while WTI crude oil prices are up +1.31% as the American Petroleum Institute report showed a continued draw-down in US crude stockpiles while tensions in the Middle East continued to rise as Iran’s chief of staff for armed forces vowed yesterday to respond to Britain’s seizure of the tanker, highlighting the risks to shipping in a waterway that about a third of all seaborne petroleum travels through. In terms of data we’ve also had the latest inflation numbers out of China where June CPI printed in line with expectations at 2.7% while PPI was unchanged yoy against expectations of a +0.2% rise yoy.

In other overnight news, Turkey’s President Erdogan said that there is need for a “complete revision” at the country’s central bank by saying that “the central bank is the most important linchpin in the finance leg of economy. Unless we make a complete revision there and put it on a strong foundation, we may face serious troubles there.” He justified firing the previous central bank governor by saying that Turkey paid a “heavy price” for Cetinkaya’s mistakes, which included a failure to communicate with markets and his inability to inspire confidence while adding, “This became intolerable, after which we made an assessment of it with our friends led by the Treasury and Finance Minister, and then we came to the conclusion that making a change here would be beneficial.” The Turkish lira is trading broadly unchanged at 5.7339.

Back to yesterday where we did get some Brexit related news. The first was Labour’s Corbyn confirming that the Labour Party would back a new referendum on any exit deal and also campaign to stay in the EU rather than leave on terms negotiated by the Conservatives. However they still feel they can get a better Brexit deal and their position is still not clear if we were to see a general election. Later on in the day, parliament voted 294-293 in favour of the measure requiring the Government to give fortnightly updates on power-sharing in NI to parliament this autumn. That will in theory make it more challenging for the next Prime Minister to force a no-deal Brexit by suspending Parliament. It’s difficult to say how much that changes the dynamics, but it feels likeSeptember/October will have the ability to see a constitutional crisis here in the UK. Sterling fell to an intraday low of $1.244 yesterday which was the weakest since April 2017 and this morning is hovering at $1.2454.

Over on the continent, the German newspaper Sueddeutsche Zeitung reported that Chancellor Merkel plans to announce a new investment plan to channel billions of euros into the country’s less developed regions. The unconfirmed plans would be the biggest in decades and would reportedly focus on digital infrastructure, public transport, and job creation. It remains to be seen how such a plan would be financed, and given previous false dawns regarding German fiscal expansion, it may be worth waiting for official confirmation.

Finally, there was a small amount of data out yesterday. In the US the June NFIB small business optimism reading declined 1.7pts to 103.3 but did still come in a little bit better than the consensus of 103.1. Later on the May JOLTS reported showed that job openings slowed slightly in May to 7.32m after expectations were for a rise. That said, since we know that employment data improved in June so this is fairly stale now.

To the day ahead now where the obvious highlight is Fed Chair Powell’s testimony this afternoon. Outside of that we’ve also got scheduled comments from the Fed’s George as we go to print right now and Bullard this evening. The FOMC minutes this evening are the other highlight. As for data releases, May industrial production prints are due in France, Italy and the UK this morning along with the May GDP reading for the latter. In the US the May wholesale inventories print is the only release of note. Elsewhere the BoC meeting is due this afternoon while the BoE’s Tenreyro is also due to speak.

end

3A/ASIAN AFFAIRS

I)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 12.93 POINTS OR 0.44%  //Hang Sang CLOSED UP 88.41 POINTS OR 0.31%   /The Nikkei closed DOWN 31.67 POINTS OR 0.15%//Australia’s all ordinaires CLOSED UP .41%

/Chinese yuan (ONSHORE) closed DOWN  at 6.8833 /Oil UP TO 57.82 dollars per barrel for WTI and 65.36 for Brent. Stocks in Europe OPENED RED// ONSHORE YUAN CLOSED DOWN // LAST AT 6.8833 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8898 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

Debt is crushing China.  (it is well over 40 trillion in USA dollars)

(zerohedge)

China’s Losing Control Of Its Crushing Debt Load As Defaults And Missed Payments Skyrocket

China’s economic slowdown and heavy debt load is affecting everybody in the country – even it’s “jewelry queen”, Zhou Xiaoguang, according to the Wall Street Journal.

Zhou, who went from selling trinkets on city streets to taking a seat in China’s parliament and becoming Ernst & Young‘s “Entrepreneur of the Year” was faced with the reality of being unable to pay her company’s billions of dollars in debt while in a bankruptcy court in April.

She is just one example of a massive debt burden taking its toll on China.

China has relied on borrowing to fuel its expansion for at least a generation. In 2018, the country was known for creating four billionaires a week and is number one globally in self-made fortunes. But this quick pace of growth, with many borrowing heavily in the process, also masked companies’ strategic mistakes.

Fueled by debt, many over-expanded into crowded sectors and now those mal-investments and mis-allocations of resources are coming back to bite them.

Over the past decade, the overall debt of the country has quadrupled to about three times the value of last year’s national output. Corporate debt makes up 2/3 of the total, amounting to more than $26 trillion last year. Most of the money is owed by government-run companies, but the stress is starting to surface also at private companies, who have less wiggle room with creditors and less support from the government.

For instance, Chenxi Group was decimated by lenders last year when they suddenly decide to call in loans. Earlier that year, the founder of machine maker Zhejiang Jindun Group committed suicide, leaping to his death, leaving the company to later reveal that it owed about $1.4 billion to loan sharks.

This year, Dong Wenbiao’s jet-maintenance to elder-care conglomerate, China Minsheng Investment Group, missed debt payments several times by days or weeks before making good on its obligations. In other words, the cracks in the surface of starting to show.

Joseph P.H. Fan, a professor of finance and accounting at Chinese University of Hong Kong said:

“Many Chinese entrepreneurs tend to borrow as much as possible, even if the core business doesn’t need it.”

Fan called Zhou’s company, Neoglory, a “textbook example” of the country’s misallocation of financial resources.

Neoglory fueled its evolution into a conglomerate through borrowings that ballooned to $6.8 billion even though cash was tight and profits were weak. The company took on new risks to borrow as it progressed, including tighter covenants and shorter payback schedules. When the company defaulted on a bond payment in mid September, its troubles became very evident.

Zhou commented:

 “Though winter may be tough to live through, it’s a good time to do introspection.”

Chinese courts have now ordered Zhou’s assets frozen. 

Starting in 2017, Beijing started to dial back an excess of lending by the financial sector – this became a deleveraging that caused shortages at many private companies. This crunch exposed egregious fundamental problems. At the same time, China’s broader economy was losing momentum. Its expansion maxed out at 10.6% in 2010 and now economists are hardly optimistic that the government’s bottom line 6% target will be achieved this year.

The country desperately needs companies that might lead China to a new stage of development that’s less dependent on construction and exports. The debt load is making it difficult for business owners to reinvest in the economy and the trade dispute with the United States continues to wear away at the country’s confidence.

And the cracks continue to show: last month, a government takeover of Baoshang Bank, sparked problems for other small banks and headaches for customers. It was the first bank takeover by regulators in decades and caused near panic.

The corporate bond market is a small part of the puzzle but is relatively transparent compared to lending. Chinese companies last year had $1.72 trillion in debt securities outstanding, which was the second highest after American companies, who carry $5.81 trillion.

Economists say the acceleration of the borrowing is worrisome. This acceleration has often proceeded recessions in other countries, and happened right before the 2008 crisis. Corporate bond demand weakened in 2018 and Beijing has now reversed its stance on lending and is encouraging banks to lend more.

More than 18,000 companies filed bankruptcy petitions in Chinese courts last year, which is about twice as many as the previous year. Bankruptcy had previously been a rare action to take in China. Bond defaults also hit record numbers last year at 125, which was five times the number in 2015. Defaults are running at an even faster pace in 2019 so far

end

This is very important:  China’s PPI signals a looming deflation threat originating in China and spreading throughout the globe

 

(courtesy zerohedge)

China Producer Prices Signal Looming Deflation Threat

Despite an avalanche of monetary and fiscal easing, record-breaking credit injections, and the media’s insistence that a trade war will cause inflation carnage, China’s producer prices were unchanged year-over-year in June – the weakest since August 2016.

Producer Goods (-0.3%) and Raw Materials (-2.1%) were the biggest deflationary drivers of PPI’s weakness.

At the same time, China consumer prices rose 2.7% YoY (as expected), hovering near its highest since Feb 2018. Food

 

As Bloomberg notes, the deceleration brings back fears of a return of deflation which would erode companies’ profit and their ability to repay debt. In the longer term, lower factory prices in China could put pressure on global inflation outlook via exports.

Going forward, “a rising base effect will likely help bring down headline CPI, barring sudden surges in food prices; and PPI may be capped due to a rising base and overall lackluster demand,” Eva Yi, economist at China International Capital Corp. wrote in a note.

However, given the relationship with China’s lagged credit impulse, we suspect deflation will threaten China for at least the next six months, before taking off…

CHINA’S largest supplier of consumer goods has now warned that Chinese factories are in urgent and desperate shape due to many USA companies leaving  China for other destinations.
(COURTESY ZEROHEDGE)

World’s Largest Supplier Of Consumer Goods Warns Chinese Factories In “Urgent And Desperate” Shape

The largest supplier of consumer goods in the world – China’s Li & Fung – has said that Chinese factories are becoming “urgent and desperate” as US retailers move out of the country amid the ongoing trade war, according to Bloomberg, and more factory shut downs are likely to follow as the trade war continues.

Companies like Li & Fung Ltd., which designs, sources and transports consumer goods from Asia for some of the world’s biggest retailers, are being pushed by their American clients to shift production out of China.

Spencer Fung, chief executive officer said: “U.S. clients are definitely very, very worried. Everyone is making razor-thin margins already and most people have a huge percentage in China. So if the biggest source increases the price by 25%, they are worried.”

And although he didn’t specify Walmart by name, the US retailer is the company’s second largest customer, accounting for 7.6% of its revenue.

Because of its position as a liaison connecting American retail companies to Asian factories, Fung has a clear perspective of the shifts taking place around the world due to the trade war. While trade deal talks have “resumed” following a recent ceasefire, there are signs that the global supply chain, traditionally very reliant on China as the factory to the world, is being permanently transformed. Companies like Intel, Apple, and Amazon have all said they are reviewing their global supply chain.

Fung continued, talking about President Trump and his Twitter habits: “Nobody’s investing, nobody’s buying. The trade war is causing people to stop investment because they don’t know where to put the money. Many people put the money into Vietnam with one tweet.”

Looking ahead, China’s contribution to Li & Fung’s total sourcing will fall from 59% in 2015 to less than 50% this year for the first time.

Meanwhile, at the same time as Chinese factories are suffering, other Asian hubs have become beneficiaries.Americans have already seized all the manufacturing capacity in Vietnam as a result.

“Vietnam, for example, is full, completely full. There’s no extra capacity for the U.S. companies to get in,” Fung said.

To preserve market share, Chinese factories are slashing prices out of sheer desperation, creating an opportunity for European and Japanese consumer brands. Fung is advising clients to take advantage of these prices.He said: “It is a buying opportunity for European and non-U.S. retailers. In China, there are a lot of factories with less and less orders. They’re offering actually pretty good prices to anybody.”Fung sees the global supply chain shakeup as an opportunity for his company to re-emerge. Its 50-country sourcing network means it can shift out of China as clients desire. The company is also at the tail end of a restructuring plan after divesting of non-core businesses and streamlining its operations.
end

4/EUROPEAN AFFAIRS

UK

Interesting 40% of all Brits are scared of a “no deal” Brexit and are stockpiling food ,medicine and clothes

(courtesy zerohedge)

40% Of Brits Brace For ‘No Deal’ Brexit By Stockpiling Food, Medicine & Clothes

On July 31, we’ll hit the 90-day mark until “Brexit Day 2.0”, and with both Boris Johnson and Jeremy Hunt promising to leave with or without a deal, the British pound is hitting fresh 2019 lows as it becomes increasingly clear that whoever wins the Tory leadership contest will opt for a ‘no deal’ exit later this year, unless the EU caves.

And just like that, the same old ‘Project Fear’-type stories that were impossible to ignore during the second half of 2018 and the opening months of 2019 have returned to the headlines. This time, it’s Business Insider writing about how Britons are stockpiling food, medicine and clothes to prepare for a ‘no deal’ Brexit.

Veg

These trends have, of course, already been reported on in exhaustive detail.

But it never hurts to remind them again how they should be ‘preparing’ for the day that voters demanded more than three years ago.

To wit, the ‘intelligence’ company Blis claimed that 40% of Britons have started stockpiling goods in fear that there will be shortages following a no-deal Brexit.

The most commonly stockpiled item is food. 56% of those Brits who are stockpiling are doing so with food items. 44% are building up supplies of household items, and well over a third (37%) are doing so with medicine.

The public is even stockpiling clothing. Over a quarter of Brits (28%) have bought extra clothes and shoes to prepare for shortages and higher prices in aftermath of the UK leaving the EU without a deal on October 31.

Both candidates to replace Theresa May as prime minister, Boris Johnson and Jeremy Hunt, have promised to take the UK out of the EU this year, with or without a deal, with Johnson insisting that leaving on October 31 is “do or die.”

The revelation that nearly half of British people are stockpiling goods like food and medicine in their own homes comes as British businesses ramp up preparations for a possible no-deal Brexit on October 31.

Business Insider has also reported that there’s a greater risk of seeing runs on consumer staples later this year. While many Britons did stockpile some supplies ahead of the original Brexit Day date in March, the scene could potentially be worse this time around. This time, there’s a greater risk that supermarket shelves might go empty, because excess storage space is filled with goods for the holidays.

One of BI’s sources said ‘no deal’ would be “disastrous” for the food and beverage industry. Products with limited shelf lives would be particularly scarce.

“Within weeks it is likely that shoppers would notice significant and adverse changes to the products available and random, selective shortages. Limited shelf life products would face the most immediate risk.”

The timing of Britain’s exit is also problematic.

“Food and drink manufacturers face difficulty in securing frozen and chilled warehousing space or logistics capacity for stockpiling, as this is peak Christmas production and the space required is already booked,” they said.

“Manufacturers will therefore have no spare production capacity or ability to store ingredients and finished products.”

“UK food imports will climb from autumn onward as fresh food stocks decline, so any no-deal disruption will have a major impact on availability.”

A majority of respondents to the sto

 

Iry also said they feared they’d have less disposable income as a result of Brexit. But we’ve heard that one before, too.

END
UK/FRANCE/USA/GERMANY/SYRIA
The UK and France accept Trump’s calls for more troops into Syria as Germany continues to rebuff the USA despite the fact that the USA protects Germany.
(zerohedge)

UK & France Accept Trump’s Call For More Troops In Syria As Germany Rebuffs

Amid an awkward diplomatic row between the UK and US following leaked cables sent from Britain’s ambassador to the United States back to London which described President Trump as “inept,” “insecure” and “incompetent,” the United Kingdom joined France Tuesday in being among the only US allies to heed the administration’s call to bolster forces in Syria.

Notably Germany has rebuffed the US request to deploy additional troops as part of the “anti-ISIS coalition” primarily in Syria’s north and east after US special envoy James Jeffrey told Die Welt’s Sunday edition that,We want ground forces from Germany to partially replace our soldiers.” This as the Pentagon plans a draw down in line with Trump’s longtime promise to the American public of a “full” and “complete” withdrawal which has been long delayed since last year over concerns that either pro-Assad and Iranian forces or Turkey could fill the vacuum.

 

Image source: Reuters

The Guardian confirmed the following on Tuesday:

US officials briefed on Tuesday that Britain and France would contribute 10% to 15% more elite soldiers, although the exact numbers involved remain secret.

The decision was first reported in the journal Foreign Policy, which described the development as “a major victory … for Donald Trump’s national security team” because few other countries had been willing to help out.

The US call for increased German presence had reportedly caused deep division in Chancellor Angela Merkel’s ruling coalition, per the AFP:

Discord broke out in German Chancellor Angela Merkel’s ruling coalition Sunday, after the United States urged the country to send ground troops to Syria as Washington looks to withdraw from the region.

The Pentagon is believed to have slowly begun drawing down its presence in Syria, from a force which is believed to have been anywhere from 2,000 to multiple thousands, down toa possible current level of 400

The UK has not commented on its own troop numbers in Syria, nor how many more it plans to send, but the bulk are believed to be special forces SAS soldiers.

The White House has of late been putting pressure on European allies to step up presence in Syria so it can essentially finally “declare victory” against ISIS and get out.

Meanwhile, Damascus sees any foreign, US or European presence as “foreign invaders” illegally encroaching on Syrian sovereignty at a moment Washington still prioritizes “countering Iran” in the region.

end

UK Ambassador who insulted Trump as inept has resigned

(courtesy zerohedge)

UK Ambassador Who Insulted Trump Resigns

The UK ambassador to the US whose abrasive criticisms of President Trump triggered a mini-diplomatic crisis right in the middle of the Tory leadership contest to decide the next PM has resigned.

In an emailed statement, Kim Darroch resigned, saying the “current situation is making it impossible for me to carry out my role as I would like.”

Darroch

Kim Darroch

 

Here’s the full text of his resignation letter:

Since the leak of official documents from this embassy there has been a great deal of speculation surrounding my position and the duration of my remaining term as ambassador. I want to put an end to that speculation. The current situation is making it impossible for me to carry out my role as I would like.

Although my posting is not due to end until the end of this year, I believe in the current circumstances the responsible course is to allow the appointment of a new ambassador.

I am grateful to all those in the UK and the US, who have offered their support during this difficult few days. This has brought home to me the depth of friendship and close ties between our two countries. I have been deeply touched.

I am also grateful to all those with whom I have worked over the last four decades, particularly my team here in the US. The professionalism and integrity of the British civil service is the envy of the world. I will leave it full of confidence that its values remain in safe hands.

In a response to Darroch’s letter, the head of the UK diplomatic service praised Darroch for doing his job with great dignity “as you always have” and blamed a “malicious leak” for undermining him.

On behalf of the diplomatic service, I accept your resignation with deep personal regret.
Over the last few difficult days you have behaved as you have always behaved over a long and distinguished career, with dignity, professionalism and class.

The prime minister, foreign secretary and whole of the public service have stood with you: you were the target of a malicious leak; you were simply doing your job.

I understand your wish to relieve the pressure on your family and your colleagues at the embassy; I admire the fact that you think more of others than yourself. You demonstrate the essence of the values of British public service.

I want to stress my deep appreciation for all you have done over the last four decades. In a series of demanding roles – including national security adviser and permanent representative to the European Union – you have loyally served the government of the day without fear or favour. We have been lucky to have you as a friend and colleague. You are the best of us.

The editor of HuffPost UK reported that Darroch decided to resign last night after Boris Johnson, who will likely be the UK’s next prime minister, refused to defend him.

Paul Waugh

@paulwaugh

Colleagues of Kim Darroch tell me he decided last night that he had to quit – after he saw @BorisJohnson fail to stand up for him on .

Then again, this fact is hardly surprising. According to Craig Murray, who shared his experiences with Darroch in an essay that we published last night, the now-former ambassador was notorious for his ‘rude’ and ‘aggressive’ mannerisms. Per Murray, Darroch’s comments about Trump were hardly out of character.

Kim Darroch is a rude and aggressive person, who is not pleasant at all to his subordinates. He rose to prominence within the FCO under New Labour at a time when right wing, pro-Israel foreign policy views and support for the Iraq War were important assets to career progress, as was the adoption of a strange “laddish” culture led from No. 10 by Alastair Campbell, involving swearing, football shirts and pretending to be working class (Darroch was privately educated).

Macho management was suddenly the thing. At a time when news management was the be all and end all for the Blair administration, Darroch was in charge of the FCO’s Media Department. I remember being astonished when, down the telephone, he called me “fucking stupid” for disagreeing with him on some minor policy matter. I had simply never come across that kind of aggression in the FCO before. People who worked directly for him had to put up with this kind of thing all the time.

PM Theresa May, who along with the UK diplomatic service backed Darroch during the controversy, said his resignation was “a matter of great regret” and added that public servants must be able to give “full, frank” advice.

Leaked cables from the embassy that were reported in the press revealed that Darroch had called Trump “inept” and “incompetent”.

Trump tweeted after the leak that he would “no longer deal” with Darroch. Despite an apology, Trump ramped up his attacks on Darroch on Tuesday, calling him “wacky” and “incredibly stupid.” Trump also seized the opportunity to take another shot at Theresa May and her Brexit deal which had been “a disaster!” according to Trump.

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

LEBANON/USA/HEZBOLLAH

Trump sanctions two members f the Lebanese parliament as being members of Hezbollah

(zerohedge)

“No Distinction”: US Sanctions Hezbollah Members Of Lebanese Parliament For First Time

The Trump administration has over the past months taken more aggressive sanctions measures on Hezbollah leadership amid the ongoing heightened tensions with Iran, given the Lebanese Shia paramilitary group has long been seen as an arm of the Ayatollahs on the Mediterranean.

But on Tuesday the US Treasury Department took the historically unprecedented step of placing two Hezbollah representatives in Lebanon’s parliament on its sanctions blacklist.

 

File photo of Hezbollah leader Hassan Nasrallah with Lebanese President Michel Aoun, years prior to Aoun’s election. Image source: Reuters

Starting in 2018 Hezbollah and parties considered aligned with Hezbollah vastly increased their presence and power in parliament — which created an awkward and delicate situation given limited US military aid to the Lebanese Army, which itself maintains a quietly cooperative stance the country’s most powerful militia, especially in anti-ISIS operations of the past years related to the war in Syria.

The political backlash following the new sanctions is sure to put US-Lebanon relations further on edge. According to the AFP:

The Treasury named MPs Amin Sherri and Mohammed Hasan Raad to a terror-related blacklist, saying that Hezbollah uses its parliamentary power to advance its violent activities.

Also placed on the blacklist was Wafiq Safa, a top Hezbollah official close to Hezbollah Secretary General Hassan Nasrallah.

Announcing the sanctions, the Under Secretary of Treasury for Terrorism and Financial Intelligence, Sigal Mandelker, said, “Hezbollah uses its operatives in Lebanon’s parliament to manipulate institutions in support of the terrorist group’s financial and security interests, and to bolster Iran’s malign activities.”

The White House has further accused Hezbollah of running a major global drug trade, which reaches deep into Latin America, allegedly fueling its pro-Iranian and anti-Israeli agenda around the globe, according to past claims from the State Department.

 

Hezbollah members of parliament, via The Daily Star (Lebanon) 

Further unprecedented is that the move for the first time makes no distinction between the “purely political” wing of Hezbollah and is paramilitary activities:

“It is time, we believe, for other nations around the world to recognize that there is no distinction between Hezbollah’s political and military wing,” a senior administration official who insisted on anonymity told journalists.

“To any member of Hezbollah considering running for office, know that you will not be able to hide beneath the cover of political office,” the official said.

The newly sanctioned Lebanese politicians and Hezbollah members have been lawmakers in Beirut for years:

Raad, 64, is the head of the parliamentary bloc of the party and an MP since 1992.

Sherri, 62, is a 17-year Hezbollah veteran of parliament representing Beirut. A Treasury official said Tuesday that Sherri had threatened violence against officials of a Lebanese bank and their families last year after the bank froze the accounts of a US-sanctioned Hezbollah financier.

This is part of the broader “maximum pressure” campaign the White House has been waging against Iran over the past month, and following the recent US drone shoot down by Iran’s military.

Iran’s Foreign Minister Mohammad Javad Zarif was expected to be placed under sanctions as well, however, the US Treasury has yet to name him as on the blacklist.

END

TURKEY

This is an ongoing saga.  For our newcomers will be explain.  Israel discovered natural gas off of the coast of Haifa several years ago.  The Israeli;s realized that the discovery was heading into Cypriot waters and onto Greek waters. The discovery is huge and the amount of natural gas can probably heat all of Europe for 30 years as well as keep Israel and Cyprus in a self sustaining mode with respect to energy.  In 1974 Cyprus was invaded by the Turks as there was a major problem between the two ruling factions, the Greeks and the Turks.  An armistice was agreed upon whereby the North belonged to Northern Cyprus and the Southern part and its capital Nicosia belong to the Greek side.  The problem is that Turkey never recognized the agreement.  Now the Turks want the natural gas and oil from that discovery and they are attacking ships doing the drilling.\\The EU now wants to sanction Turkey after a second drilling ship has been detained in Cypriot waters by the Turks.

(zerohedge)

EU Mulls Sanctions On Turkey After 2nd Drilling Ship Deployed In Cypriot Waters

Turkey and Europe are headed for a showdown in the eastern Mediterranean over Turkish plans for oil and gas exploration and drilling in Cypriot-recognized waters, with the European Union reportedly now mulling cutting financial assistance to Turkey over the illegal drilling. EU envoys are reportedly meeting Wednesday to discuss various punitive measures against Turkey, including suspending aviation talks and even sanctions.

The latest crisis was triggered after Turkish drilling vessel Yavuz sailed to an area off Cyprus’ east coast at the start of this week — the second to follow a first drilling vessel, Fatih, which had already been exploring in Cypriot waters. Notably, the vessels have been accompanied by the Turkish military, including drones, F-16 fighters, and warships.

 

Turkish drillship Yavuz, via Hurriyet Daily News

Turkish authorities have been brazen in publicizing their territorial claims and actions backing them, even as EU leaders have slammed the now months-long exploration and drilling expansion in solidarity with Cypriot condemnations (since last May).

Turkish Vice President Fuat Oktay had warned over the weekend while speaking from the Turkish-occupied north of Cyprus: “Those who move against the legitimate rights of Turkey or the Turkish Cyprus and discount Turkey in the region will not be able to reach their aims,” according to Hurriyet Daily.

However, EU foreign minister Federica Mogherini warned Turkey this week that the EU would respond “appropriately and in full solidarity with Cyprus” after Ankara announced the deployment of the Yavuz drilling vessel. Previously, the Fatih had been deployed a mere 42 miles off the west coast of Cyprus.

Embedded video

TRT World

@trtworld

Turkey’s drilling vessel “Fatih” was given a salute by a Turkish Air Force F-16 jet

The EU’s Mogherini said following news of the second drill ship deployment that it’s an “unacceptable escalation” which violates EU-member Cyprus’ sovereignty:

Turkey’s declared intention to illegally conduct a new drilling operation northeast of Cyprus is of grave concern. This second planned drilling operation, two months after the start of the ongoing drilling operations west of Cyprus, is a further unacceptable escalation, which violates the sovereignty of Cyprus.

“We call on the Turkish authorities, once again, to refrain from such actions, act in a spirit of good neighborliness and respect the sovereignty and sovereign rights of the Republic of Cyprus in accordance with international law,” she added.

The Cypriot government has repeatedly condemned Turkey’s “blatant violation of international law” and urged the EU to take firmer action.

“The Republic of Cyprus is determined to continue to defend its legal rights to the benefit of all its legal citizens, intensifying its efforts at a legal, political and diplomatic level, using all means at its disposal, especially in the framework of the European Union,” a new Cypriot government statement reads.

The president of Cyprus Nicos Anastasiades previously slammed Turkey for its “unprecedented escalation of illegal action” which constitutes a “second invasion” in the eastern Mediterranean, blaming Ankara for illegally drilling inside its exclusive economic zone.

Both the internationally recognized Greek Cypriot government and Turkey – which occupies northern Cyprus – have overlapping claims of jurisdiction for offshore oil and gas research in the natural gas-rich eastern Mediterranean.

Turkish President Recep Tayyip Erdogan has recently been provocatively sending warships near Cypriot waters in order to ward off foreign competition to oil and gas research, according to Cypriot officials, also seeking to bar Cypriot ships and planes from freely traversing its own European recognized waters.

But Erdogan is also bumping up against other Mediterranean countries’ plans in the region — notably Israel and Egypt as well, at a moment he’s engaged in multiple crises both domestic and related to the West  even as Turkey has long sought EU membership.

Turkey has in the past demanded that Cyprus formally recognize the breakaway Turkish Republic of Northern Cyprus (since 1974) and allow it to share revenues from Cypriot gas exploration.

Furthermore Turkey has laid claim to a waters extending a whopping 200 miles from its coast, brazenly asserting ownership over a swathe of the Mediterranean that even cuts into Greece’s exclusive economic zone.

Such claims have been condemned by the US, European Union, and Egypt, with NATO officials recently signalling to Turkey that it was out of line. Should the Turkish military attempt to enforce its drilling claims and run up against Cypriot and Greek vessels, it could spark a deadly encounter which would force the EU and NATO to finally weigh in more forcefully.

END
TURKEY/SYRIA
Bankrupt Turkey is again set to invade the North West part of Syria as it looks like that there is a new offensive in Idlib province headed by the SA.  The SAA is backed by the USA
(courtesy zerohedge)

Large Turkish Military Build-up On Idlib Border As New Assad Offensive Looms

Via AlmasdarNews.com

A large Turkish military convoy reportedly deployed to the border of northwestern Syria last night, the state-owned Anadolu Agency reported on Tuesday.

According to the Anadolu report, the Turkish military was comprised of 50 armored vehicles that made their way to the Hatay Province’s border with the Idlib Governorate.

 

Image via Christian Turner

The Turkish military troops, which were comprised of their commando units, deployed to the Qarqkhan District of the Hatay Province.

While the reason for the deployment was not revealed, it likely has to do with the new reports of a Syrian Arab Army (SAA) offensive in northwestern Syria.

Since May, Turkey has accused the Syrian Army of frequent attacks on some of their observation points. The most recent Syrian Army attack on the Turkish observation post resulted in a hostile exchange between the two parties.

View image on TwitterView image on TwitterView image on TwitterView image on Twitter

EHA News@eha_news

📷 | The Armed Forces () has sent new military reinforcements to the |n border

A convoy of armored vehicles including tanks has been sent to the Suruç and Akçakale districts of ‘s Şanlıurfa city at the border with Syria’s Ain-Al Arab and Tal Abyad

Turkish media aired footage of lines of Turkish military reinforcements headed toward the Syrian border outside Idlib.

Embedded video

Lucifuge Rofocale@rofoca_lucifuge

More Turkish commando troops are on their way to the observation points in Idlib Turkey’s Hatay border gate

The Syrian government has demanded that Turkey completely withdraw from Syria; however, Ankara maintains that they are fighting ‘terrorists’ along their border.

The ‘terrorists’ targeted by the Turkish military are members of the U.S.-backed People’s Protection Units (YPG) and Syrian Democratic Forces (SDF). Ankara claims both of these Kurdish-led groups are offshoots of the outlawed Kurdistan Workers Party (PKK).

END
TURKEY RUSSIA/ USA/NATO
The deal has been completed: Russia delivers the S 400 SAMS to Turkey. As indicated before Trump is furious and now let us see how he will do
(courtesy zerohedge)

Done Deal: Russian S-400s Begin Arriving In Turkey

Russian and Turkish state sources confirmed Wednesday that deliveries of S-400 anti-aircraft missile systems are now underway, with parts for the advanced Russian systems already having arrived in Turkey via transport planes with a team of Russian specialists, reportedly in the eastern Anatolian city of Malatya as well as the capital of Ankara.

Russian Presidential Spokesman Dmitry Peskov announced of the provocative transfer which has for the past year been met with condemnation by the United States – including the threat of sanctions and blockage of F-35s to Turkey – that “Deliveries of Russian S-400 complexes to Turkey are carried out as planned.”

 

Image source: AFP

The US this week again warned of “real and negative” consequences if Turkey completes the purchase of the S-400, which is now definitively a done deal with the S-400 equipment arrivals in Turkey. “Those consequences include participation in the F-35 program,” a State Department spokesperson said Tuesday.

Turkey, for its part, shot back on Wednesday that the US must avoid taking the “wrong steps,” with the foreign ministry saying in a statement, “We are inviting the US to avoid taking the wrong steps which would exclude diplomacy and dialogue and harm relations.”

Starting months ago Turkey consistently affirmed it’s “a done deal” and that there would be no cancellation, even as Washington urged “alternatives” such as US Patriot missiles.

But as of today it now appears there’s no further dialogue to be had on the S-400, which early this week President Recep Tayyip Erdogan declared would be a positive development for the defense of the region “and for the world”. On Wednesday Erdogan further described to reporters:

“Some people have a question about why we buy the S-400, why we make such an investment. If we have to, we will have the right to use them. If someone attacks us, we will use these air defense systems. That’s why we make such an investment.”

Interestingly, the new US Ambassador to Turkey, David Satterfield, just arrived in the country to take up his post at the US Embassy in Ankara on same day the S-400 deliveries began.

The State Department’s stance is that “nothing has changed” concerning US resistance to the S-400 deal. Concerns have been driven over fears that it would allow Russia to access sensitive information on the defenses of NATO aircraft, especially if Turkey’s military is simultaneously operating the Lockheed Martin made F-35 advanced stealth fighter.

“The Turkish authorities know the legislation that has been passed in Congress as it relates to CAATSA,” U.S. State Department spokeswoman Morgan Ortagus said on Tuesday . “We have said that Turkey will face real and negative consequences if they accept the S-400, including participation in the F-35 program.”

At least two batches of the S-400 surface-to-air missile batteries are expected to be delivered in total, however, they likely won’t be ready for deployment until October, according to reports.

The question of which side decides to blink or compromise first will be interesting, given we’re now past the point of no return.

6. GLOBAL ISSUES

7. OIL ISSUES

 

 

8 EMERGING MARKET ISSUES

 

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

Euro/USA 1.1218 UP .0013 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 /RED EXCEPT ITALY

 

 

USA/JAPAN YEN 108.92 DOWN 0.015 (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 1.2471   UP   0.0013  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3132 DOWN .0003 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  WEDNESDAY morning in Europe, the Euro ROSE BY 13 basis points, trading now ABOVE the important 1.08 level RISING to 1.1218 Last night Shanghai COMPOSITE CLOSED DOWN 12.93 POINTS OR 0.44% 

 

//Hang Sang CLOSED UP 88.41 POINTS OR 0.31%

/AUSTRALIA CLOSED UP 0,41%// EUROPEAN BOURSES ALL RED EXCEPT GERMAN ITALY

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED EXCEPT ITALY

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 88.41 POINTS OR 0.31%

 

 

/SHANGHAI CLOSED DOWN 12.93 POINTS OR 0.44%

 

Australia BOURSE CLOSED UP .41% 

 

 

Nikkei (Japan) CLOSED DOWN 31.67  POINTS OR 0.15%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1395.90

silver:$15.10-

Early WEDNESDAY morning USA 10 year bond yield: 2.09% !!! UP 3 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.58 UP 4  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 97.45 UP 4 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

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And now your closing WEDNESDAY NUMBERS \12: 00 PM

Portuguese 10 year bond yield: 0.51% DOWN 7 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.12%  UP 4   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.44%//UP 2 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD: 1.74 UP 0 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 130 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: RISES TO –.31% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.05% 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 WEDNESDAY

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

Euro/USA 1.1254  UP     .0050 or 50 basis points

USA/Japan: 108.43 DOWN .500 OR YEN UP 50  basis points/

Great Britain/USA 1.2506 UP .0049 POUND UP 49  BASIS POINTS)

Canadian dollar UP 36 basis points to 1.3091

 

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The USA/Yuan,CNY: AT 6.8729    0N SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.8715  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.6883 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield DOWN 1 IN basis points from THURSDAY at 2.06 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.56 DOWN 2 in basis points on the day

Your closing USA dollar index, 97.09 DOWN 40  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 3.97  0.10%

German Dax :  CLOSED DOWN 63.14 POINTS OR .51%

 

Paris Cac CLOSED DOWN 4.51 POINTS 0.08%

Spain IBEX CLOSED DOWN 21.00 POINTS or 0.23%

Italian MIB: CLOSED UP1587.79 POINTS OR 0.73%

 

 

 

 

 

WTI Oil price; 59.91 12:00  PM  EST

Brent Oil: 66.47 12:00 EST

USA /RUSSIAN /   ROUBLE RISES:    63.14  THE CROSS LOWER BY 0.68 ROUBLES/DOLLAR (ROUBLE HIGHER BY 68 BASIS PTS)

 

TODAY THE GERMAN YIELD RISES  TO –.31 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 :  60.35//

 

 

BRENT :  66.52

USA 10 YR BOND YIELD: … 2.06…   VERY DEADLY//

 

 

USA 30 YR BOND YIELD: 2.58..VERY DEADLY/

 

 

 

 

 

EURO/USA 1.1252 ( UP 47  BASIS POINTS)

USA/JAPANESE YEN: 108.47 DOWN .464 (YEN UP 46 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.12 DOWN 37 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2503 UP 45  POINTS

 

the Turkish lira close: 5.6822

 

 

the Russian rouble 63.18   UP 0.63 Roubles against the uSA dollar.( UP 63 BASIS POINTS)

Canadian dollar:  1.3083 UP 45 BASIS pts

USA/CHINESE YUAN (CNY) :  6.8729  (ONSHORE)/we need to watch these levels/anything greater than 6.95 will be deadly./

 

USA/CHINESE YUAN(CNH): 6.8822 (OFFSHORE) we need to watch these levels/anything greater than 6.95 will be deadly/

German 10 yr bond yield at 5 pm: ,-0.31%

 

The Dow closed  UP 76,71 POINTS OR 0.29%

 

NASDAQ closed UP 36.38 POINTS OR 0.28%

 


VOLATILITY INDEX:  13.03 CLOSED DOWN 1.06

LIBOR 3 MONTH DURATION: 2.341%//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//

“It’s Absurd” – S&P Tops 3,000 As Powell Promises Rate-Cuts Are Coming

Did The Fed jump the shark entirely with their non-data-dependent rate-cut that was so exposed today?

The most dovish rhetoric since 2017…

Ben Breitholtz@benbreitholtz

Powell offers up the Fed’s most DOVISH rhetoric during a single day of speeches since 2017. @DataArbor @biancoresearch

It is very difficult to look at these markets and listen to Jay Powell and make any sense of it,” exclaimed CNBC’s Rick Santelli.

Even the typical cheerleaders are losing faith. None other than CNBC’s Steve Liesman asked (rhetorically):

“At 3000 on the S&P and 1.83 on the 2Y, how much looser do financial conditions need to be.”

Powell spent the morning explaining how much “uncertainty” there is and why that means a rate cut is urgently needed… trouble is, stocks don’t care in the least…

Perhaps of even more note, even The Fed is waking up to the fact that it is – in fact – manipulating markets…

“While overall financial conditions remained supportive of growth, thoseconditions appeared to be premised importantly on expectations that the Federal Reserve would ease policy in the near term to help offset the drag on economic growth stemming from uncertainties about the global outlook and other downside risks.”

The Fed suddenly realizes the reflexive impact of its policies (and perhaps the vicious cycle endgame they know they will be unable to escape from by the time this is over).

Stocks only track global liquidity…

And nothing else…

So are bonds right? Or stocks?

Simply put, it’s madness:

Nasdaq (all time closing high) outperformed on the day, but it was the S&P crossing above 3,000 that made the headlines. Trannies ended red…

 

NOTE – stocks dipped into the European close before rebounding.

S&P tagged 3k at the open but failed twice to get back up there…

 

 

Small caps continue to dramatically underperform the S&P…

 

 

Defensive stocks once again dominated the gains…

 

 

FANG stocks are at critical resistance…

 

 

Treasury yields tanked on Powell’s reaffirmation of uber-dovishness, with the short-end massively outperforming (2Y -8.5bps, 30Y +3bps)…

 

 

10Y Yields stalled at the pre-FOMC levels and dumped on Powell…

 

But the 2s10s curve steepened dramatically…

 

One of the biggest steepening days of the last decade…

But while the curve steepened, 3m10Y remains inverted for 35 straight days…

The odds of a 50bps rate cut have exploded today, from 0% to 23%…

Before we leave rates-land, debt-ceiling anxiety is increasingly evident in the yield curve…

 

The dollar dumped on the day after Powell promised rate-cuts but remains well off the pre-payrolls levels…

NOTE – The move has been extremely technical, with the dollar index stalling at pre-FOMC levels and rolling over.

 

Cryptos had a bad day, tumbling on Powell’s prepared remarks and the incessant questions from Congress on Libra…

 

 

With Bitcoin bashed back below $12k…

 

 

Commodities were all higher on the day as the dollar dived but oil was the huge outlier…

 

 

WTI Crude exploded higher today, back above $60 as inventories showed major draws and tensions in the MidEast picked up once again…

 

Gold jumped back above $1400…

 

Finally, as Credit Suisse notes, this has been the longest period of negative macro surprises in the past 20 years – while it of course also has been the longest expansion ever…

But, since the June FOMC meeting, gold remains the easy winner…

Perhaps the precious metal is pricing in policy failure on an increasingly catastrophic level.

end

 

i) Market trading/

Powell unexpectedly dovish and no doubt he will cut rates

(courtesy zerohedge)

Stocks, Bonds, & Gold Spike As Dollar Dives After Powell’s Dovish Remarks

‘dovish-er’ than expected set of prepared remarks from Fed Chair Powell has sparked a bid in bonds, stocks, and gold as the dollar takes a dive ahead of his testimony late this morning.

Dow futures love the bad economic news… are up 150 points on Powell’s promises…

 

The dollar is rapidly pulling back from the pre-FOMC levels it has recovered to…

And as the dollar dives, investors are buying gold…

And bonds (also yields diving from the pre-FOMC levels)…

Powell’s remarks suggest he is comfortable with market pricing of an interest rate cut at the end of July. This was an opportunity to push back against those expectations if he wanted to, and he did just the opposite. July rate-cut odds are back at 100% (from 92.5% pre-remarks).

Since the June FOMC, gold remains the biggest winner…

end

MARKET TRADING/LATE MORNING/FOMC

FOMC Minutes Show “Many Fed Officials” See Rate-Cuts Warranted

Since the June FOMC meeting, Gold has dramatically outperformed. Stocks are higher but bonds and the dollar have roundtripped to unchanged (at least before Powell’s testimony sparked some comeback).

Better-than-expected macro data has been the theme in the short amount of time since the June FOMC meeting…

But Powell vehemently shrugged good news off today, happier instead to promote the more pessimistic side.

However, eyes remain on the FOMC Minutes for any more signs of dovishness spreading across the Fed members, though notably Powell’s testimony today – uber-dovish – outweighs one-month old meeting minutes.

In fact today alone, the odds of a 50bps rate cut in July has surged to 23% from 0% before Powell spoke…

But the Minutes still managed to be more dovish than expected…

*MANY FED OFFICIALS SAW STRONGER RATE-CUT CASE AMID RISING RISKS

However…

*FED: SEVERAL OFFICIALS DIDN’T YET SEE A STRONG RATE-CUT CASE

There was one sensible member…

*A FEW FED OFFICIALS SAW RATE CUT RISKING FINANCIAL IMBALANCES

But, downside is the worry now…

*MANY FED OFFICIALS IN JUNE SAW RISKS WEIGHTED TO THE DOWNSIDE

For now, Fed Funds futures are steady after the Minutes, with 70bps of easing priced in for 2019.

*  *  *

 

end

LATE AFTERNOON//TRADING
Usually the extra ordinary measures used by government once the debt ceiling has been reached is a full 7 months.  They officially reached the debt ceiling on the 2nd of MARCH 2018… which should put the drop dead date around the first week of October.  Government has been glowing with reports of increasing jobs and wage growth and that somehow has not been translated where it is needed most…tax collection.  It seems that our boys may run out of money by the first week of September..one month early….
(zerohedge) 

Treasury Curve ‘Kink’ Signals Debt-Ceiling Anxiety Is Accelerating

Treasury Secretary Steven Mnuchin is reportedly seeking to arrange another budget and debt ceiling meeting with House Speaker Nancy Pelosi, according to Senate Appropriations Chairman Richard Shelby.

Perhaps Mr. Mnuchin has noticed the dramatic ‘kink’ that has appeared in the short-term US Treasury market.

 

Focusing in specifically on the ‘kink’, we see a dramatic escalation in debt-ceiling anxiety over the last month…

In fact, The Bipartisan Policy Center now forecasts a risk that the debt limit “X Date” – the date when the federal government can no longer pay all of its bills in full and on time – could occur in the first half of SeptemberThis “X Date” risk falls earlier than BPC’s previous projection range, based on new data and analysis.

As the summer progresses, the Treasury Department will continue to expend its cash on hand and extraordinary measures —legally permissible accounting maneuvers that enable limited additional borrowing authority when the debt limit is reached, as it was in March.

The latest data reveal a serious risk that the ‘X Date’ could fall in early September, particularly if federal revenues underperform,” said Shai Akabas, BPC’s director of economic policy. “The alignment of certain payments in the first two weeks of the month, prior to when Treasury will receive a cash influx of quarterly tax payments, could exhaust Treasury’s borrowing room.”

“Even though our projection continues to show that the most likely timing of the ‘X Date’ remains early October, uncertainty is high, and it would be reckless for policymakers to run the risk of default by failing to deal with the debt limit in advance of the August recess.”

Federal revenues for Fiscal Year 2019 have been sluggish, with overall revenue growth running at less than 3 percent. Weaker-than-expected corporate income tax collections, in particular, seem to be related to the 2017 tax cuts. When combined with BPC’s increased ability to base estimates on its short-term model as the “X Date” draws nearer, updated analysis has unearthed the possibility of an inability to meet all federal obligations in the first half of September.

“It is unusual for us to note a specific risk outside of our latest projected ‘X Date’ range, but this new analysis has revealed a dangerous scenario that cannot be ignored. Budget negotiators need to know that time is running short,” Akabas stated.

“All forecasts carry uncertainty, but given the potentially devastating economic consequences, it would be irresponsible for Congress to ignore this new forecast. The only way to take the possibility of default off the table this year is to pass a debt limit extension in the coming weeks.”

Senate Majority Leader Mitch McConnell said yesterday that he hopes lawmakers can consider a budget deal “soon” to avoid the chaos caused by short-term spending bills, because the House is in session for only three weeks before the August break, “time is running out.”

 

ii)Market data/

iii)USA ECONOMIC/GENERAL STORIES

Trump backs away from supporting the Hong Kong protests in the hope of reviving the trade talks with Beijing.

(zerohedge)

Trump Abandoned Support For Hong Kong Protests To Revive Trade Talks With Beijing

If it seems like Washington toned down its support for the Hong Kong anti-extradition bill protest movement after Trump’s meeting with President Xi in Osaka, that’s because Trump ordered his administration to pull punches as part of his pact with his Chinese rival in order to ensure that trade talks with China didn’t wither on the vine.

Trump

Citing several senior administration officials, the FT reports that Trump explicitly promised Xi that the US would roll back its support for the pro-democracy movement in Hong Kong and tone down its criticism of Beijing’s approach to Hong Kong to entice China to return to the table.

And as Hu Xijin confirmed Wednesday morning, the US and Chinese trade delegations have restarted talks, and a trip to Beijing by Mnuchin and Lighthizer, the leaders of the American trade delegation, might be in the offing in the very near future.

Hu Xijin 胡锡进

@HuXijin_GT

Chinese and US negotiators held a phone conversation. Chinese side only confirmed the phone conversation, without mentioning the conversation is “constructive” as described by the US side. So cautious it seems Chinese side has learned lessons from previous changes.

Here’s more from the FT:

The US president made the commitment when the two leaders met at the G20 summit in Osaka, according to several people familiar with the meeting. One person said Mr Trump made a similar pledge in a phone call with Mr Xi ahead of the G20 summit.

Concrete steps taken by the administration include pressuring Kurt Tong, the outgoing US general consul, to leave out criticisms of Beijing from his final speech. A Washington think tank also delayed what was assumed to be a critical speech by Tong, presumably under pressure from the White House.

Others have complained that Tong isn’t the only Beijing critic who has been muzzled by the administration in recent weeks.

Following the Trump-Xi meeting, the state department told Kurt Tong, the departing US consul general in Hong Kong, to remove several critical comments about China from his final speech in the Asian financial hub. Mr Tong had told people he would give a speech about Hong Kong that would mention the erosion of freedoms by China in the territory, but the veteran diplomat was forced to water down the July 2 address.

[…]

Mr Tong, who retires on Friday, was also due to give a talk at the Center for Strategic and International Studies, a think-tank, in Washington on Wednesday. But the speech was postponed at short notice, leading some to say privately that the state department had instructed him to push back the address. One person familiar with talks at CSIS said the Trump administration was more aggressive about policing officials than its predecessors. “Our speakers from state and defence get pulled or told they can’t take questions or do things on the record about half the time these days — usually at the last minute,” he said.

Previously, the Trump Administration had warned that passage of the extradition bill might force it to cancel Hong Kong’s status as a sovereign entity, and instead treat it as if it were formally a part of mainland China. That would rob the city state of the special status that has helped transform it into a global financial hub. Hedge fund manager Kyle Bass has cited the removal of this status as a pillar of his short-HK dollar thesis.

But as we’ve previously documented, Trump is willing to give away a lot to ensure that a trade deal happens.

So, Hong Kongers can stop looking to the US for support as the movement continues into its second month.

end
The complicated mess of Obamacare is to get an appellant court hearing today which will eventually lead to the entire removal of Obamacare.
(zerohedge)

Frustrated Judges Slam “Complicated” Obamacare Mess

When John McCain stymied a Republican-controlled Congress from gutting Obamacare back in the summer of 2017, he infuriated President Trump and sent pundit tongues wagging about how Republicans might never manage to kill the law.

Two years later, the Trump Administration is backing 19 Republican-controlled states, including Texas, in a lawsuit that they hope will eventually prompt the Supreme Court to invalidate the entire law – something it declined to do back in 2012, when Chief Justice John Roberts sided with the court’s liberals to preserve the law.

Medical

But first, the complicated legal mess must wind its way through the appeals courts, where a panel of judges is apparently having a hard time untangling the Trump administration’s position, which is constantly in flux. As Bloomberg reports…

While the red states and the Trump administration are technically adversaries in this challenge, their lawyers sat at the same table during the hearing and told the judges they both think Obamacare is unlawful. However, Hawkins took pains to highlight inconsistencies that have developed in the Trump administration’s position, which left Flentje, the Justice Department lawyer, occasionally struggling to explain himself.

When the challenge was in the lower court, the Justice Department said it didn’t need a specific judicial order halting the ACA because the federal government would treat the judge’s decision as a nationwide injunction. Later, the Trump administration shifted gears and said it will keep enforcing Obamacare until a court orders it to stop.And last week, the administration shifted positions again to insist that lower-judge’s order only blocks Obamacare in states that sued to overturn it.

At a hearing this week before a panel of appeals-court judges, a DoJ lawyer effectively begged the court to resolve the issue, much like the Supreme Court did when it legalized gay marriage nation-wide.

Several times, Flentje seemed to almost beg the judges to resolve the impasse between the White House and Congress, as the Supreme Court did when Obama refused to defend the federal law denying recognition to same-sex marriages.

“The courts then said this was a reasonable way to let the judicial branch have the final say,” Flentje sai. “The Supreme Court discussed this conundrum and said it’s a reasonable way, especially when we have a complicated statute that covers a lot of ground.”

A gang of attorneys appeared before the panel during the hearing, including a lawyer representing the White House, a lawyer representing Congress, and a hodge podge of attorneys representing the red states (who are challenging the law) and the blue states (who are defending it).

But the judges at times sounded confused about the administration’s position to invalidate the law in states that are challenging the federal legislation, but let it stand in the blue states that want it.

“Why does Congress want the judiciary to be a taxidermist for every big-game legislative accomplishment it achieves?” the rookie on the panel, Kurt Engelhardt, an appointee of President Donald Trump, asked the lawyer representing the U.S. House of Representatives during a lively hearing in New Orleans.

Another judge didn’t understand how the federal government thinks it can administer a law it believes is completely unconstitutional in just parts of the country.

“You want to strike it down, only in certain states, in its entirety?” U.S. Circuit Judge Jennifer Elrod, appointed by President George W. Bush, asked a lawyer for the Justice Department.

“A lot of this stuff has to be sorted out, and it’s complicated,” replied the attorney, August Flentje, as he shifted uncomfortably. “We haven’t gone down that road yet.”

Whatever happens, most expect the Supreme Court to have the final say. And with President Trump’s appointment of two very conservative judges (Brett Kavanaugh and Neil Gorsuch), it’s likely that the court might be more predisposed to issue a bold ruling that invalidates the law in its entirety, potentially ending health coverage for 20 million people just as the 2020 campaign is heating up.

end
Interesting:  Trump has asked two board nominees for their views on the dollar.  He wants it lower
(courtesy zerohedge)

Trump Asked Fed Board Nominees For Their Views On The Dollar

President Trump has renewed his attacks on the greenback lately by ratcheting up pressure on the Fed to deliver a steep rate cut this month (which, in Trump’s mind, would help Powell stay one step ahead of the uber-dove Mario Draghi and his probable successor, Christine Lagarde), and accusing Europe and China of manipulating their currencies to disadvantage the US.

Greenback

And according to the most recent report from Bloomberg, Trump has tasked his aides with figuring out exactly what can be done to safely weaken the greenback, and he has also asked both Judy Shelton and Christopher Waller, his two latest nominees to fill the empty Fed board seats, about their views on the dollar.

So far, Trump’s attacks on the dollar have been mostly bluster. But as Bank of America pointed out in a conspicuously prescient research note published last month, jawboning is one of Trump’s most reliable tools for knocking down the dollar. BofA affirmed that the dollar is trading 13% above its long-term average, a sign that Trump is correct to call it overvalued.

REER

BofA warned that the administration might soon take direct action to weaken the dollar, either through jawboning, or perhaps even direct intervention via the New York Fed’s markets desk. Pressing the Fed to ease – although the odds of a rate cut have fallen since Friday’s surprisingly robust jobs report – is another option outlined by BofA. A weaker dollar would, in theory, help bolster US exports and act as a shot in the arm for the economy as Trump prepares to battle it out for a second term.

And as BofA showed, incidences of Trump jawboning the dollar have grown more frequent over the past year.

Dollar

Of course, when moving to weaken the dollar, the Trump administration must tread carefully or risk igniting an all-out currency more among its G-20 allies. In a communique, the group agreed to avoid targeting exchange rates for the purposes of competitive devaluation. Though there is some wiggle room: temporary interventions to stabilize one’s currency would be permitted under the agreement.

During his interview with Trump, Waller, currently the head of research at the St. Louis Fed, led by the dovish James Bullard, said the Fed doesn’t explicitly target exchange rates (then again, that’s what they all say). But one of Trump’s top economic officials, Larry Kudlow, appeared to come around to his boss’s position during an interview with CNBC on Tuesday, where he said that “price level stability and a steady dollar” should be the primary objectives of Fed policy, not employment.

Wall Street strategists are starting to come around to the notion that the greenback’s impressive bull run may have reached a Trump-assisted inflection point.

“Although it would be highly unusual for a US government to attempt further measures to weaken the dollar, it is not beyond the realms of possibility that the Trump administration will try,” said Jane Foley, head of currency strategy for Rabobank.

When it comes to strategies for weakening the greenback, Trump could seek a ‘Plaza Accord 2.0’ with other major economies (since a weaker dollar is broadly in the interest of emerging-market economies that borrow in dollars). Mnuchin could also order the Fed to intervene, as we mentioned above, using money from the Treasury’s exchange stabilization fund and the Fed’s own dollar-denominated assets.

Intervening to weaken the dollar is one thing: Doing it in a way that’s sustainable would be significantly more difficult. That’s because a weaker dollar would stoke inflationary pressures by making imports more expensive. This, in turn, would likely push yields higher and pressure the Fed to hike interest rates.

But even if the administration doesn’t succeed, Trump has already set up the greenback as the perfect scapegoat if the economy goes south between now and election day, 2020. The strong dollar left the US at a competitive disadvantage – and the Fed, not Trump, should shoulder the blame.

end

 

Bill Blain takes a close look at Boeing and how it might fail:

(zerohedge)

Blain: Is Boeing About To Trigger The Next Market Crash

Blain’s morning porridge, submitted by Bill Blain

All eyes on what Powell tells Washington today, but a number of Porridge Readers called to tell me I’m wrong about summer risks! They think my expectation for a long worried nervous but stable summer before markets are bailed out by accommodative central banks in late Q3 is way too optimistic.

A number feel markets are ripe for a sudden and painful rollover in bonds and stocks – and much sooner than I think. What they did agree with was my assessment the likely trigger for a market shock will be a “no-see-em”, something so obviously hidden in plain sight it catches us completely and painfully by the short and curlies. And “Plane” sight might be a good way to put it. I’m wondering if Boeing might be the trigger! (See what I did there..?)

Hang on? We all know the next market collapse isn’t booked till October? Well maybe not. What if someone tries to start the market apocalypse early? That would shock the many market participants who think the perception of a Global Central Bank put means there is nothing to worry about. Complacency is a terrible thing.

Smart bond gurus are shouting bubble! Although US junk bonds have not tightened as much as treasuries through the last uptick, they are still at incredibly tight spreads. European sub-investment grade is rallying in the expectation a tide of new ECB investment grade purchases will lift all boats. Yet, with yields so low as to completely discourage any dealer inventory (which is too high a capital cost anyway), liquidity has never been so thin. As I say in my new book, The Fifth Horseman – How to destroy to Global Economy, (yes, I am going to plug it remorselessly), “Taking higher risk and less liquidity for lower returns is not a winning strategy.” (That is so good I’m adding it to my list of Blain’s Market Mantras.)

If the bond market is finally waking up to the bubble then we’re in trouble. All it took to fire the last crisis were concerns about sub-prime mortgages and a liquidity shut-down. What happens this time if we get a tri-fecta of junk bonds and covenant-lite CDOs, a resumed sovereign debt crisis, and overleveraged zombie corporates sinking the whole bond market? Ouch. That’s going to hurt. I confidently predict the current problems of funds that have had to gate because of illiquidity will be as nothing compared to what may come.

This morning I read Greek bonds yield less than US treasuries! Italy got €17 bln demand for a 50-year bond, basically because investors want convexity and think the ECB is going to ease. (And they want to repeat the spectacular returns garnered by the Austrian Century bond.) Italy has caught a bid because, apparently, the ECB is not going to sanction the country over its breach of GDP/Debt fiscal rules, and the appointment of Christine Lagarde as new ECB president means “do-what-ever-it-takes-for-ever” is nailed on. Even Czech bonds are in negative territory.. It all sounds far too good.

And what about Stocks – surely they will remain insanely optimistic on the back of central bank easing? That’s why they have been hitting new records. UBS is on the wires this morning warning the new US Earnings season that starts on Monday could be a big disappointment. Every 3 months, regular as a bowl of All Bran) some investment bank warns Earnings will disappoint. Maybe this time they will.  UBS say “the bad news is good news” dynamic is set to end. Earnings growth expectations have slumped to 3% from 20% last year. They say “rate-cut rallies” often prove short-lived.

At the start of this morning’s Porridge I said Boeing might be the trigger that unravels the current market complacency.  Why?

Many readers may not be aware Boeing is the largest component stock of the Dow Jones – 11.6% weighting in the index. That means its potential for unbalancing sentiment across the market is huge. Boeing stock is down 20.5% since it hit a high in early March, and down 17% since the second Boeing B-737 Max Air Ethiopia crash on March 10th. Since that crash, despite increasingly negative new flow and rising legal and regulatory pressure, Boeing is only down 6.5%. That’s pretty stable for a company that could be in serious trouble from a host of demand issues (ie not selling many planes,) regulation, legal (lots of people going to sue), cash, a loss of confidence, and a growing perceptions the company lost sight of safety in search of profit.

I am concerned the market is underestimating just how bad things could go for Boeing, and when it does, the whole equity market will knee-jerk aggressively, triggering pain across all stocks. I noticed yesterday the number of negative posts and comments on Boeing has risen dramatically in recent days. The crunch might be coming.

Let’s consider Boeing’s issues.

Despite the assurances from company HQ in Chicago, it looks increasingly unlikely it will get the B-737 Max back in the air this year. Boeing has just announced its H1 deliveries in 2019 are down 54%. It has only delivered 90 new aircraft this year. Yet, it is producing 42 new B-737 Max’s each month, and is having to store them on airport parking lots! It isn’t getting paid for these aircraft, but it still has supply chain commitments to meet. Boeing is haemorrhaging cash to build an aircraft no-one can fly – not a great strategy.

Why is it taking so long to get the B-737 Max back in the air? Part of the problem is fixing the problem to a level pilots, airlines and importantly, passengers are happy. Quick work arounds – Boeing’s initial response – are not acceptable. The second problem is a belated regulatory kickback by the US Federal Aviation Authority. They are running scared – under weak leadership they’d let Boeing self-regulate itself for years. Now the agency is playing catch-up and it doesn’t help Boeing has been caught out on a host of other certification issues across its whole production since the 2 Max crashes. Even though Donald Trump is now tweeting about his support for Boeing and new orders being imminent from his good friends in Qatar, the FAA is not going to rush to approve any MAX fix.

Boeing is trying to rush deliveries of other aircraft types to buyers to make up for the B-737 Max cash slack. But there have been problems with B-787 Dreamliners built at its state of the art Charleston factory – “shoddy production and weak oversight” said the New York Times.  At least one airline is said to be refusing to accept aircraft built outside Seattle. The US Airforce stopped deliveries of new KC-46 Tankers for a while when they found engineers had left hammers and other tools in wing and control spaces – a clear indication of “safety standards gotten too lax” said Defense News!

Part of Boeing’s problem is its decision not to design new aircraft, but to upgrade old ones. The venerable B-737 is nearly as old as me, first flown in the early 1960s. It made commercial sense for Boeing to keep upgrading and upscaling the design because it kept the factories delivering and they could tell regulators it was just an upgrade not a new design saving billions on testing and training. It’s now clear the Boeing 737 Max was compromised to save money. 2 of them crashed killing 346 people. Someone has calculated 1 in 8 million aircraft passengers die in accidents. It’s about 1 in 300,000 on the B-737 Max. So much for Boeing and Safety.

This has massive implications for Boeing. Its next big upgrade is the B-777X, an “upgrade” of the old B-777. It will be lighter and more efficient for operators, and a new experience for passengers. But, there is now no-way it’s going to get a fast-track path to airline service as a “upgrade”. It’s going to be tested, stressed and pilots trained. Forget next year deliveries. We are looking at years down the road before any of us fly it. Boeing must rue the day they didn’t go with completely new design – which would have been hugely expensive and killed the stock performance of recent years, but would have left Boeing dominating the larger aircraft space and reaping the kinds of returns it could have made on the Dreamliner. It would have been a far more valuable company long-term.

Now the B-787 Dreamliner is tarnished with the botched Boeing brush. The winner is the relatively new Airbus 350 which can do exactly what the Dreamliner does in terms of efficiency and passenger experience. It can also do the B-777’s job. Airbus wins by default.. but what does a beaten Boeing mean for markets?

Crashing minor chords.

SWAMP STORIES

three commentaries on Jeffery Epstein…he may bring down many major Republican and Democrats.
(courtesy Watson  plus others)

Ann Coulter Thinks Epstein Had A “State Sponsor” & Was Running A “Blackmailing” Operation

Authored by Paul Joseph Watson via Summit.news,

“Something much bigger is behind this”

Conservative commentator Ann Coulter says that sex trafficker Jeffrey Epstein had a “state sponsor” backing him and that his operation was a way to blackmail powerful men.

 

During an appearance on 790 KABC, Coulter suggested that Epstein is merely the front man for a far more powerful network.

“Epstein according to both the girls accounts, he wanted them to have sex with powerful men, come back to him and report on it, describe what they wanted what their fetishes were and he had cameras throughout the house so this is obviously for blackmailing purposes,” said Coulter.

It just seems to me something much bigger is behind this — perhaps a state sponsor — powerful enough people

…it just seems to me there’s something a very powerful force behind what’s going on here and I am still nervous about this not coming to a conclusion, somehow this getting compromised,” she added.

Coulter said that it remained a mystery as to how Epstein became a billionaire and that the source of his money should be investigated.

Former President Bill Clinton attempted to distance himself from Epstein last night, claiming he only flew on the infamous ‘Lolita Express’ private jet four times despite flight logs showing at least 26 trips.

As we reported yesterday, speculation is swirling that Epstein may give up names of influential people who used his network in order to secure a maximum prison sentence of no more than five years.

*  *  *

 

end

Snyder: Epstein Case Has The Potential To Be The Biggest Scandal In American History

Authored by Michael Snyder via The Economic Collapse blog,

We are about to open up a can of worms that could turn our entire country completely upside down by the time it is all said and done.

Billionaire Jeffrey Epstein’s horrific crimes have been well known for a very long time, and I have been writing about them for many years. In fact, there were some people that really, really didn’t like it when I wrote about Bill Clinton’s connections to Jeffrey Epstein and “the Lolita Express” during the 2016 presidential election. Flight records show that Bill Clinton took 26 trips on board Jeffrey Epstein’s infamous private plane, and Clinton also spent an enormous amount of time on Epstein’s secluded private “sex island” where underage girls were routinely abused. Of course Jeffrey Epstein had lots of other very famous friends as well, and it has been documented that his “black book” was absolutely filled with marquee names from Hollywood, Wall Street and Washington.

But despite everything that we knew about what was going on, for a very long time it looked like justice would never be served. Epstein got an absolutely ridiculous sweetheart deal from prosecutors in 2008, and none of his famous friends were ever charged with anything. They all probably thought that they had escaped the grasp of law enforcement forever, but this month everything has suddenly changed.

In recent days, authorities apprehended Epstein after his plane returned from an overseas trip, they raided his home, and they formally charged him with sex trafficking and conspiracy

Fund manager Jeffrey Epstein used his wealth and power to sexually abuse dozens of young girls for years at one of the biggest mansions in Manhattan, paying them hundreds of dollars in cash for each encounter and hundreds more if they brought in more victims, U.S. prosecutors said.

Now, federal prosecutors are charging him with sex trafficking and conspiracy. They’re seeking to send him prison for years and seize that Manhattan home.

The indictment unsealed on Monday against the well-connected financier came days after his arrest upon returning from overseas and just hours after federal agents used a crowbar to enter the townhouse.

The U.S. Attorney’s Office for the Southern District of New York is prosecuting Epstein, and they don’t mess around. They win more than 90 percent of the cases that actually go to trial, and Epstein has good reason to be shaking in his boots at this point.

And it is also extremely interesting to note that James Comey’s daughter is one of the prosecutors on this case

Maurene Comey, daughter of former FBI Director James Comey, is reportedly a prosecutor in the new criminal case against convicted pedophile Jeffrey Epstein. This details comes out of a new CNN report. The source is described as a person “with knowledge of the case.”

Will that turn out to be significant?

We shall see as this drama plays out.

In the legal community, everyone has an agenda, and the U.S. Attorney’s Office for the Southern District of New York certainly has an agenda in this case.

But what is their goal?

Why have they decided to pursue this specific case at this specific time?

Perhaps the primary goal is to nail Epstein to the wall once and for all. If Epstein is convicted of all the charges against him, he will spend the rest of his life in prison. And if that is all there is to this story, it won’t be an enormous national scandal.

However, it could also be possible that the U.S. Attorney’s Office for the Southern District of New York wants to use Epstein to get to one or more of his famous friends, and that is where things could get very “interesting”.

And the fact that this case “is being overseen by the Public Corruption Unit of the SDNY” would seem to indicate that something is up…

Second, what should we make of reporting that Epstein’s prosecution is being overseen by the Public Corruption Unit of the SDNY? Short answer: It’s too soon to say. It could mean that a public official is being investigated or will be charged with Epstein. That could be a minor public figure or a major one. It could mean that SDNY is investigating misconduct in the plea that Epstein was given in 2008. Or it could mean none of those things.

After everything that Epstein went through in 2008, you would think that he would clean up his life and get rid of all the stuff that got him into so much trouble in the first place.

But when authorities raided his home, they discovered a “vast trove” of photographic evidence…

Prosecutors said a search of Epstein’s Manhattan mansion after his arrest turned up a ”vast trove” of nude photos of what appeared to be underage girls. Officials said in court papers that the pictures included some on CDs with handwritten labels, including “Misc nudes 1,” “Girl pics nude” and the names of specific young women.

It has also previously been reported that in the old days Epstein would actually record “the sordid orgies he threw for VIPs at his luxury homes using cameras hidden in the walls of guest bedrooms”, but it is not known if those recordings still exist or if authorities were able to find any such recordings when they raided Epstein’s home.

In any event, there is clearly an enormous amount of evidence against Epstein already, and that means his only hope of avoiding prison for the rest of his life is to cooperate with authorities.

And as former federal prosecutor Elie Honig has pointed out, Epstein’s former friends from Hollywood, Wall Street and Washington should be quite scared right now…

We do not know if Epstein will cooperate, but even if he does not, others will very likely be implicated. It seems clear from the indictment that others helped Epstein run his alleged sex trafficking operation and otherwise participated in it. At least some of those names will come out in court proceedings, public filings, potentially trial and perhaps additional indictments. And it’s worth noting that the Epstein case is being handled by the SDNY’s Public Corruption Unit — in my experience, human trafficking cases usually are handled elsewhere in the office — which strongly suggests that public officials could be under a microscope here. Anybody who helped Epstein in any way needs to get a lawyer and get scared.

Of course Epstein could choose to sacrifice himself and protect his friends by not talking, but that isn’t likely to happen. In fact, Jack Posobiec is reporting that Epstein’s lawyers have already made it clear to the SDNY that their client will cooperate as long as he can get a reduced sentence…

SCOOP: Epstein’s lawyer has already made a proffer to SDNY. Epstein will agree to cooperate with the investigation, including giving up the names of individuals that paid for activities with underage girls in exchange for a maximum sentence not to exceed 5 years

In addition to Epstein’s potential testimony, just a few days ago a judge ordered the unsealing of records in a related case that detail allegations of “sexual abuse” by “numerous prominent American politicians, powerful business executives, foreign presidents, a well-known prime minister and other world leaders”

This news comes just days after a judge ordered the unsealing of nearly 2,000 pages of records related to a civil case that could reveal how he and his accused accomplice Ghislaine Maxwell allegedly trafficked underage girls

The documents that will be unsealed are from a defamation case that was settled after Epstein entered a guilty plea guilty to a single charge of soliciting and procuring a person under age 18 for prostitution.

Records in the defamation case contained descriptions of sexual abuse by Epstein along with new allegations of sexual abuse by ‘numerous prominent American politicians, powerful business executives, foreign presidents, a well-known prime minister and other world leaders.’

We will talk about who some of those individuals might be in the second part of this series which I will post later tonight on The Most Important News.

I have been writing about corruption in the political world for a long time, but this could be the scandal of all scandals.

So stay tuned, because I believe that things are about to get extremely interesting.

end
My goodness, this is getting good: Acota reportedly claims that Jeffrey Epstein “belongs to intelligence”. It sure seems that Epstein was running a black mail operation.
(courtesy zerohedge)

Bombshell: Alex Acosta Reportedly Claimed Jeffrey Epstein “Belonged To Intellig

 

*  *  *

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END
Part B of Michael Snyder’s commentary
(courtesy zerohedge)

Major Red Flags Are Causing Many To Doubt Whether Justice Will Be Done In The Epstein Sex Scandal

Authored by Michael Snyder via The Economic Collapse blog,

It won’t just be Jeffrey Epstein that will be on trial in the months ahead.  As this scandal unfoldsthe entire U.S. legal system will be on trial, and if justice does not prevail many Americans will lose faith in the system for good.

And of course the rest of the world will be watching too, and so what are they supposed to think about us if we are not able to put Epstein and all of his dirty friends in prison?  As I detailed in part three of this series, the evidence against Jeffrey Epstein and his partners in crime is mounting.  If Jeffrey Epstein is put behind bars that will be a step in the right direction, but it will not nearly be enough.

At this point it is exceedingly clear to everyone in America that many of Epstein’s famous friends also regularly had sex with underage girls, and they must be held accountable.  In my most recent book I talked about how fundamentally broken our current legal system is, but if federal prosecutors are able to nail Epstein and all of his elite friends that were involved in these sex crimes, I might have to reconsider my position.

However, at this point I am not holding my breath.

Let me try to explain why.  As I have already discussed in this series, one of Epstein’s closest friends during the heyday of “the Lolita Express” was Bill Clinton.  And it turns out that the federal judge that will be presiding over Epstein’s case was appointed to his position by Clinton in 1998

Richard Berman was appointed by Bill Clinton in 1998. He presided over Dinesh D’Souza’s case where D’Souza was convicted of re-imbursing friends to evade campaign contribution limits in a New York election.

Meanwhile, disgraced former FBI director James Comey’s daughter Maurene is one of the prosecutors in the case.

So will Berman recuse himself?

He should, but I doubt that it will actually happen.

Also, the fact that James Comey’s daughter is one of the prosecutors is a major red flag.  I have a gnawing suspicion that something is up, and hopefully I am wrong.

But on a positive note, it was encouraging to see prosecutors call for anyone that has “information about Epstein’s conduct to come forward”

U.S. prosecutors on Monday encouraged anyone with information about Epstein’s conduct to come forward, not just potential victims. To the socialites, celebrities and politicians who attended lavish parties at Epstein’s homes in Manhattan or Palm Beach in the early 2000s or hitched rides on his private jet nicknamed the “Lolita Express” by the tabloids the request carried a clear message: Come talk to us before we seek you out.

And I was also greatly encouraged by the fact that the feds have already announced that more of Epstein’s accusers have already come forward since his arrest…

In the hours since Mr. Epstein’s arrest, prosecutors said, several other women contacted them with complaints about Mr. Epstein. Some of those accusers had never previously spoken to the government, prosecutors said.

Several of Mr. Epstein’s accusers said they were relieved that authorities seemed to be taking their complaints seriously after many years.

Nailing Epstein should be pretty easy, and things got even easier for prosecutors after a “treasure trove” of photographic evidence was found during a raid on Epstein’s New York home.

The tricky part will be nailing Epstein’s famous friends.  In the old days he regularly partied with some of the biggest names in America, and going after them will not be easy.

But it must be done, because the reputation of our entire nation is at stake.  If the rich and famous can sexually abuse underage girls for years and get away with it, how are any of us supposed to have faith in the system?

According to Miami Herald reporter Julie Brown, Epstein and his dirty friends liked to prey on young girls that were as vulnerable as possible

In a November investigation led by Miami Herald reporter Julie Brown, about 80 victims were identified as having been abused by Epstein from 2001 to 2006. The Herald spoke with eight of the accusers. It found:

Most of the girls came from disadvantaged families, single-parent homes or foster care. Some had experienced troubles that belied their ages: They had parents and friends who committed suicide; mothers abused by husbands and boyfriends; fathers who molested and beat them. One girl had watched her stepfather strangle her 8-year-old stepbrother, according to court records obtained by the Herald. Many of the girls were one step away from homelessness.

Whoever was involved in sexually abusing these vulnerable young girls needs to go to prison.  And if it was up to me, their punishment would be a lot worse than that.

Many people out there seem to be convinced that there is no way that these sexual predators will get away this time.  Personally, I am not so sure.  They have the money to hire the best lawyers in the entire country, and we can already see evidence that an effort is being made to protect certain individuals.  For example, a Wikipedia entry for Jeffrey Epstein was suspiciously altered on Sunday

The sentence, “Epstein flew Bill Clinton, Kevin Spacey, and Chris Tucker to Africa in his private jet. Flight records show Bill Clinton flew on Epstein’s plane 26 times,” was removed Sunday.

The edit was made one day before Bill Clinton denied flying on the jet so often, and instead, said he only flew on it four times.

Meanwhile, a sentence mentioning the fact Epstein “attended parties” with Donald Trump was left unaltered.

We shall see how this drama plays out in the months ahead, but anything short of putting all these perverts in prison is going to be a defeat.

The sick and evil behavior of the elite is finally being revealed for all the world to see, and the things that we will learn as more evidence comes out will likely shock all of us.  As Michelle Goldberg has aptly noted, we are about to discover “how rotten our rulers really are”…

In a detention memo submitted on Monday, federal prosecutors outlined some of the evidence seized from a search of Epstein’s house on Saturday night. It included hundreds — possibly thousands — of sexually suggestive photographs of girls who appear underage, as well as hand-labeled compact discs with titles like “Girl pics nude,” and, with the names redacted, “Young [Name] + [Name].”

It seems, at first, astonishingly reckless for Epstein not just to allegedly keep such material, but to keep it in Manhattan, instead of, say, on his private Caribbean island. Maybe, however, it’s simply a sign of how protected he felt. “In my mind there has always been this huge question mark: What is Jeffrey Epstein’s leverage?” Ward said. If we find out, we’ll know just how rotten our rulers really are.

I would really like to believe that all of the bad guys are going to go to prison, but I have seen our legal system fail so many times before.

Perhaps that is the case that will finally turn things around.

Perhaps we will finally see some of the biggest names in America brought to justice.

The whole world is watching, and we cannot afford to get this one wrong.

end

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

BASF warns profit could fall 30% on U.S.-China trade war   https://bloom.bg/2JmFdEB

FTSE 250 stumbles after Ireland sounds Brexit risk

Ireland’s finance minister warned of significant risk of a disorderly Brexit and said the country was preparing to protect itself from any legal consequences as a result…

https://uk.reuters.com/article/uk-britain-stocks-idUKKCN1U40P2

The post-NYSE opening dip rally stalled when Bullard began his speech.

About 15 minutes into Bullard’s speech, this appeared: Fed’s Harker Says He Does Not See a Case for an Interest Rate Cut – WSJ

ESUs jumped higher after Harker’s ‘no rate cut’ comment.  FANGs led the rally, a sign that traders were the primary force in the up move.  ECB Chief Economist Phil Lane generated the rally.

Lane: Substantial Accommodation Is Still Required (10:23 ET)

If More Easing Needed, ECB Has the Tools – We Do Not See a Recession (10:29 ET)

@ecb: Lane: Pro-active measures (including negative rates) are the surest way to ensure inflation climbs to our aim: a temporary period of negative rates is the pathway to positive rates in the future

We are already buying EIB bonds, classified as supranational bonds.  The supranational bond purchases amount to €230 billion.

    We have a variety of tools in our kit. When we need to use them, we will choose the one most suitable for the situation

The rally ended minutes before the European close.  ESUs and US stocks then traded sideways in a tight range that contracted until this appeared:

Lighthizer, Mnuchin Spoke with China’s Liu by Phone over Trade

The ensuing rally produced a two-handle ESU rally.  Even the algos are getting inured to trade hype!

ESUs and stocks then went dead, trading within a one-handle range until the last 45 minutes of trading. ESUs then broke modestly lower.  However, someone juiced ESUs during the final 25 minutes of trading.  This act was probably someone or more ‘protecting the position’ that they entered yesterday.

Most of the activity on Tuesday occurred between the NYSE open and 11:00 ET, 90 minutes.

US, Iranian officials held secret talks in Iraq last week

125 Iranian officials were said to be arrested, charged with espionage in an attempt to neutralize them

    Secret meetings between US government officials and Iranian officials took place last week at a hotel in Erbil, the capital of the Kurdish region in Iraq, sources informed i24NEWS, as the Iranian regime shows signs of a nascent upheaval…

https://www.i24news.tv/en/news/international/1562691436-exclusive-us-iranian-officials-recently-held-secret-talks-in-iraq

Fed Chair Jerome Powell Will Make the Case for Cutting Interest Rates…

https://www.barrons.com/articles/federal-reserve-chair-jerome-powell-will-make-the-case-for-cutting-interest-rates-51562683107?mod=bol-social-tw

Attention Powell et al! What if the long-expected boomer retirement boom never happens? The trend is in that direction [Boomers can’t retire because interest rates are too low, Jerry!]

OECD projections show that labour force participation rates of older workers are headed higher. Over all, the OECD sees the participation rate for 55- to 74-year-olds rising by 3.4 percentage points through 2030 for the median country, with increases ranging from a drop of 2.25 percentage points in Germany to an increase of 11.5 points in Japan. Canada will be second only to Germany in actually seeing a fall in the participation rate of older workers, in the order of about 1.7 percentage points…

https://www.theglobeandmail.com/business/commentary/article-what-if-the-long-expected-boomer-retirement-boom-never-happens-the/

Today – The Street expects Powell to issue dovish comments when he testifies before the House Financial Services Committee at 10:00 ET.  Normally, Democrats flog the Fed Chair to cut rates and supply the juice.  Because Trump is pressuring the Fed to cut rates, Democrats are likely to flog Powell about Fed independence.

The main question for today: How much of yesterday’s morning rally and the late ESU manipulation was due to expectations that Powell would do a Draghi today?  If Powell isn’t dovish, look out!

The S&P 500 Index’s Inside Day from Monday was resolved to the downside.  However, traders poured into ESUs during the morning in America and during the final minutes of NYSE trading.  This created an Outside Day.  Traders will heed the S&P 500 Index high (2981.90) and low (2963.44).

It’s now all up to Powell.  We cannot fathom what he will say; but we’d guess he will try to stay in the middle lane.  ESUs are +5.00 at 21:00 ET in anticipation of Powell going Draghi.

Felix Sater testified, again, at the House Intel Committee yesterday.  Dems and their Media Amen Chorus have tried to paint Sater as a key witness in Trump’s collusion with Russia.  Slater was reportedly involved with the Trump Tower project in Moscow.

 

You haven’t heard much about Sater’s testimony yesterday because there was nothing harmful to leak about Team Trump.  Sater told reporters that the new material that was covered was Sater’s allegation that Fusion GPS’s Glenn Simpson had twice committed perjury.

https://twitter.com/thehill/status/1148682516406165504

 

Why is DJT standing by beleaguered Labor Secretary Acosta despite his involvement with Epstein’s lenient sentence?  Acosta says he was told to leave Epstein alone because “he belonged to intelligence.”

Yesterday, Trump asserted that ‘there were other people behind Acosta’s decision on Epstein’.  When will those peoples’ names be revealed?

 

Jeffrey Epstein’s Sick Story Played Out for Years in Plain Sight

How did the New York financier stay nearly untouchable for decades?

      Epstein’s name, I was told, had been raised by the Trump transition team when Alexander Acosta, the former U.S. attorney in Miami who’d infamously cut Epstein a non-prosecution plea deal back in 2007, was being interviewed for the job of labor secretary. The plea deal put a hard stop to a separate federal investigation of alleged sex crimes with minors and trafficking.

    “Is the Epstein case going to cause a problem [for confirmation hearings]?” Acosta had been asked. Acosta had explained, breezily, apparently, that back in the day he’d had just one meeting on the Epstein case. He’d cut the non-prosecution deal with one of Epstein’s attorneys because he had “been told” to back off, that Epstein was above his pay grade. “I was told Epstein ‘belonged to intelligence’ and to leave it alone,” he told his interviewers in the Trump transition, who evidently thought that was a sufficient answer and went ahead and hired Acosta…

https://www.thedailybeast.com/jeffrey-epsteins-sick-story-played-out-for-years-in-plain-sight

 

@ShimonPro: Epstein’s lawyer yesterday said that the initial agreement was approved “all the way up in main justice and it sure seemed like a global solution at the time to everyone.”

 

Was Epstein running ‘honey traps’ and blackmailing the power elite?

Remember Anna Chapman, the lovely Russian agent who allegedly plied Americans with her wiles in exchange for official secrets but was caught?  This real-life Red Sparrow was exchanged for Americans held by the Russians in 2010 before she could spill any beans

    Back when Ralph Nader wrote his first book, Unsafe at Any Speed, criticizing the Chevrolet Corvair as an alleged safety hazard, General Motors hired a woman to lure him into a compromising situation.  He turned it down and blew the whistle, forcing General Motors to publicly apologize to him and making him into a hero.  The fact that GM was at the time the largest manufacturer in the United States implies that even the mighty and powerful, not just the weak and desperate, resorted to the tactic…

https://www.americanthinker.com/blog/2019/07/the_question_that_must_be_asked_was_epstein_running_honey_traps_and_blackmailing_the_power_elite.html#.XSTrX_Ud0sM.twitter

 

Ann Coulter Thinks Epstein Had a “State Sponsor” & Was Running a “Blackmailing” Operation

“Epstein according to both the girls accounts, he wanted them to have sex with powerful men… and he had cameras throughout the house so this is obviously for blackmailing purposes,” said Coulter.

It just seems to me something much bigger is behind this — perhaps a state sponsor — powerful enough people… and I am still nervous about this not coming to a conclusion, somehow this getting compromised,” she added…

https://www.zerohedge.com/news/2019-07-09/ann-coulter-thinks-epstein-had-state-sponsor-was-running-blackmailing-operation

 

@paulsperry_: Google photos of Jeffrey Epstein and Bill Clinton, previously available on Google Images, appear to have been scrubbed

 

Trump ‘dossier’ author grilled by Justice Department watchdogs: sources

Three attorneys from the Inspector General’s office of the U.S. Department of Justice met in person in early June with dossier author Christopher Steele in Britain…

    One of the two sources said Horowitz’s investigators appear to have found Steele’s information sufficiently credible to have to extend the investigation. Its completion date is now unclear…

https://www.reuters.com/article/us-usa-trump-russia/trump-dossier-author-grilled-by-justice-department-watchdogs-sources-idUSKCN1U410I

 

Trump’s Fighter Jet Sale to Taiwan Advances despite China’s Protests

Previous administrations, including former Presidents George W. Bush and Barack Obama, rejected Taiwan’s request to buy new F-16s, likely so as not to provoke Beijing.  But the Trump administration has recently become more concerned that an attack by China on Taiwan might come sooner rather than later… https://foreignpolicy.com/2019/07/03/trumps-fighter-jet-sale-to-taiwan-advances-despite-chinas-protests-f-16-lockheed-martin/

 

@AsheSchow: Sen. Mitch McConnell on the NBC report that his great-great grandfathers owned slaves:

“You know, I find myself in the same position as president Obama. We both oppose reparations and we both are the descendants of slave owners.”

 

@Barnes_Law: Right now, all the leading Democratic presidential candidates are Senators or long-time ex-Senators seeking to challenge @realDonaldTrump. What isthe success rate of Senators challenging incumbents in American history? Only 1 in 12, and that was 1888.  [In addition, Senator Gore lost to Gov. Bush in 2000.  Senator Clinton lost to Nothing Trump in 2016.]

 

  1. Ross Perot rose from poverty to self-made billionaire

His 19% of the vote in 1992 stands among the best showings by an independent candidate in the past century.  Perot died of leukemia early Tuesday at his home in Dallas… He was 89…

https://apnews.com/6f2a4a73431b43e2bd4534d2dc561125

Well that about does it for tonight

I will see you on THURSDAY night

H

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