JULY 12//GOLD REBUFFS ATTACK BY THE BANKERS TODAY: GOLD UP $5.25 TO $1410.30 AND ADDS ANOTHER 4 DOLLARS IN THE ACCESS MARKET//SILVER UP 10 CENTS TO $15.22//USA POISED TO INCREASE SANCTIONS ON IRAN AND ALSO ON TURKEY//SURPRISINGLY THE EXPORT JUGGERNAUT CITY STATE OF SINGAPORE ANNOUNCES HUGE SLOWDOWN IN ITS ECONOMY//VOLVO ANNOUNCES THAT IT MAY PULLOUT OF SWEDEN//SWAMP STORIES AND MANY EPSTEIN COMMENTARIES//

GOLD: $1410.30  UP  $5.20 (COMEX TO COMEX CLOSING)

 

Silver:  $15.22  UP 10 CENTS  (COMEX TO COMEX CLOSING)//

 

 

 

Closing access prices:

Gold : $1415.80

 

silver:  $15.24

 

 

YOUR DATA…

 

 

COMEX DATA

 

 

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

today RECEIVING  3/5

EXCHANGE: COMEX
CONTRACT: JULY 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,404.300000000 USD
INTENT DATE: 07/11/2019 DELIVERY DATE: 07/15/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
661 C JP MORGAN 3
690 C ABN AMRO 1
737 C ADVANTAGE 2 2
905 C ADM 2
____________________________________________________________________________________________

TOTAL: 5 5
MONTH TO DATE: 833

 

 

 

NUMBER OF NOTICES FILED TODAY FOR  JULY CONTRACT: 5 NOTICE(S) FOR 500 OZ (0.2674 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  833 NOTICES FOR 83300 OZ  (2.5909 TONNES)

 

 

 

SILVER

 

FOR JULY

 

 

20 NOTICE(S) FILED TODAY FOR 100,000  OZ/

 

total number of notices filed so far this month: 3637 for   18,185,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 11786 UP 301 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 11,702 UP 221

 

 

 

 

end

 

 

 

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL A SMALL  SIZED 380 CONTRACTS FROM 219,540 DOWN TO 219,160 WITH THE 9 CENT LOSS 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 STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:,

0 FOR JULY. 0 FOR AUGUST, 1211 FOR SEPT, AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1211 CONTRACTS. WITH THE TRANSFER OF 1211 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 1211 EFP CONTRACTS TRANSLATES INTO 6.05 MILLION OZ  ACCOMPANYING:

1.THE 9 CENT LOSS 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//

20.835 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:

10,824 CONTRACTS (FOR 9 TRADING DAY TOTAL 10,824 CONTRACTS) OR 54.120 MILLION OZ: (AVERAGE PER DAY: 1202 CONTRACTS OR 6.01 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY:  54.120 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 7.73% 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:          1212.73   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 380, WITH THE 9 CENT LOSS IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  STRONG SIZED EFP ISSUANCE OF 1211 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) .

 

TODAY WE GAINED A SMALL SIZED: 831 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 1211 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 380  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 9 CENT LOSS 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. 1.096 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: 20NOTICE(S) FOR 100,000OZ 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 20.835 MILLION OZ
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018) AND NOW AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

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

.

 

IN GOLD, THE OPEN INTEREST FELL BY A HUGE 7766 CONTRACTS, TO 595,495 WITH THE $5.25 PRICING LOSS WITH RESPECT TO COMEX GOLD PRICING YESTERDAY// /THE SPREADING ACCUMULATION WILL NOW COMMENCE FOR GOLD….

ALSO WE AGAIN HAD A HUGE DISCREPANCY BETWEEN THE PRELIMINARY NUMBERS AND THE FINAL NUMBER OF 8,000 CONTRACTS.  nO DOUBT THAT THIS WAS USED IN THE ATTACK OF OUR PRECIOUS METALS YESTERDAY.

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A GIGANTIC  SIZED 13,150 CONTRACTS:

APRIL 0 CONTRACTS,JUNE: 0 CONTRACTS, AUGUST 2019: 1315 CONTRACTS, DEC>  0 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 595,495.  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 5384 CONTRACTS: 7766 CONTRACTS DECREASED AT THE COMEX  AND 13,150 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 5384 CONTRACTS OR 538,400 OZ OR 16.75 TONNES.  YESTERDAY WE HAD A LOSS OF $5.25 IN GOLD TRADING.AND WITH THAT LOSS IN  PRICE, WE  HAD A GOOD GAIN IN GOLD TONNAGE OF 16.75  TONNES!!!!!! THE BANKERS WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER.

 

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 GOLD 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.” 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JULY : 71,824 CONTRACTS OR 7,182,400 oz OR 223.40 TONNES (9 TRADING DAY AND THUS AVERAGING: 7980 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 9 TRADING DAYS IN  TONNES: 223.40 TONNES

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

THUS EFP TRANSFERS REPRESENTS 223.40/3550 x 100% TONNES =6.29% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     3150.23  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 HUGE SIZED DECREASE IN OI AT THE COMEX OF 7766 WITH THE  PRICING LOSS THAT GOLD UNDERTOOK ON YESTERDAY($5.25)) WE ALSO HAD  A GIGANTIC SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 13,150 CONTRACTS AS THESE HAVE ALREADY BEEN NEGOTIATED AND CONFIRMED.   THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX.  I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS HARDLY ANY GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES. IF YOU TAKE INTO ACCOUNT THE 13,150 EFP CONTRACTS ISSUED, WE HAD A GOOD SIZED GAIN OF 5384 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

13,150 CONTRACTS MOVE TO LONDON AND 7766 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 16.75 TONNES). ..AND THIS GOOD INCREASE OF  DEMAND OCCURRED DESPITE THE LOSS IN PRICE OF $5.25 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX. WE HAVE ALREADY WITNESSED STRONG SPREADING ACCUMULATION IN GOLD AS THE NON ACTIVE DELIVERY MONTH PROCEEDS.

 

 

 

we had:  5 notice(s) filed upon for 500 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD UP $5.20 TODAY//

NO CHANGE IN GOLD INVENTORY AT 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 10 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 TINY SIZED 380 CONTRACTS from 219,540 DOWN TO 219,160 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 GOLD AND STOPPED THE LIQUIDATION OF THE SPREADERS IN SILVER

 

 

 

 

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. 1211  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1211 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 380  CONTRACTS TO THE 1211 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A SMALL GAIN OF 831 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 4.31 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 20.835 MILLION OZ STANDING SO FAR.

 

 

RESULT: A SMALL SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE 9 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 1211 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)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED UP 12.79 POINTS OR 0.44%  //Hang Sang CLOSED UP 39.82 POINTS OR 0.14%   /The Nikkei closed UP 42.37 POINTS OR 0.20%//Australia’s all ordinaires CLOSED DOWN .25%

/Chinese yuan (ONSHORE) closed DOWN  at 6.8811 /Oil UP TO 60.31 dollars per barrel for WTI and 66.70 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.8811 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8813 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/

Truce ends:  China to sanction American defense contractors who sell arms to Taiwan

( zerohedge)

4/EUROPEAN AFFAIRS

i)UK

Boris Johnson  (BoJo) is to become the next UK Prime Minister and now he is set to bring the UK out of the terrible EU deal it was dealt many years ago

(courtesy zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

 

i)IRAN/ISRAEL

 

Israel’s Mossad passed information to the IAEA of radioactivity in a facility that the Iran’s claim is a carpet factory.  If so this is a huge violation of the Iranian deal and this could lead the European faction to also pull out of the deal

(zerohedge)

ii)IRAN/UK

An oil tanker is waiting for a 2nd warship which will accompany the ship through the Strait of Hormuz

(zerohedge)

iii)IRAN/USA

The USA is contemplating using the “snapback” provision in the 2015 Iran nuclear deal to bring back the tough sanctions against Iran for violating the uranium enrichment program.  The USA would need either England and France to initiate the proceedings.With England set to leave the EU under a no deal Brexit, England will now do doubt back the USA
( zerohedge)
iv)Turkey/USA
The USA is now set to respond as the S 400s arrive
(zerohedge)

6. GLOBAL ISSUES

i)As I promised you there is no such thing as made made climate change: It just does not exist\Finish research proves the fact.

( zerohedge)

ii)SINGAPORE
This is very telling: export juggernaut Singapore reports that its economy unexpectedly tumbles.  This is a huge Bellwether as to global growth.  Chinese exports also slide big time  (see above)
(zerohedge)
iii)SWEDEN
By goodness!! The entire world associates Sweden with Volvo. The executives now want to leave due to rise in violent crime brought on by the huge influx of migrants.   Nobody wants to come to the next largest city in Sweden Gothenburg due to the crime wave.
(Paul Watson/.Summit News)

iv)DHL

Another solid Bellwether: DHL sounds the alarm bell on collapsing world trade and reports that a significant downturn is now underway

(courtesy zerohedge)

7. OIL ISSUES

 

 

8 EMERGING MARKET ISSUES

 

i)INDIA/USA

After Washington removed trade privileges of a growing nation last month, India was angry and initiated new tariffs on the uSA./ Trump is angry and he might bring on new tariffs against India.

(zerohedge)

 

 

9. PHYSICAL MARKETS

i)My goodness: this central bankers is soooo dumb! After accumulating gold he wants now to reverse course by buy Chinese debt and USA debt as reserves?????

(Bloomberg/GATA)

ii)We need a reliable measure of value across borders and through time:  the only answer is gold and silver

( Judy Shelton/gATA)

iii)Dave Kranzler correctly states that the Fed Chairman has got it wrong with a gold standard.  If a country has a gold standard, a central bank is not needed.

( Dave Kranzler/IRD/GATA)

iv)What a joke: London’s gold market is more liquid (in physical metal) than bonds ..so says the crooked LBMA

( Reuters/GATA)

v)Pam and Russ Martens note the similarity between what happened in 2008 and today.

A must read..

(courtesy Pam and Russ Martens/GATA/WallStreet on Parade)

vi)I brought the following important article to your attention yesterday but I am repeating it.  GoldMoney’s Alasdair Macleod on analyzing the futures market positioning of large traders concludes that we have a “whale” on the loose who first suppressed the price of silver and then more recently accumulated the metal..that whale is non other than Mainland, sovereign China.

(courtesy Alasdair Macleod/GoldMoney/GATA)

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

 

 

 

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

II)MARKET TRADING/USA

 

 

ii)Market data/USA

Strong PPI numbers, at 1.7% and this is a forerunner for higher inflation numbers. The big question is;s:  does the Fed care?

(courtesy zerohedge)

iii)USA ECONOMIC/GENERAL STORIES

a)Welcome to Chicago!!

(zerohedge)

b)The storm is set to hit Louisiana on Saturday and it will be devastating..especially because New Orleans is below sea level and the Mississippi River is already 10 feet above levels i.e. at 16 feet

(zerohedge)
c)J and J tumble on reports of a criminal probe as to whether they knew that their talc could produce cancer
(courtesy zerohedge)

SWAMP STORIES

i)Epstein sold his “Lolita Express” weeks before his arrest

(zerohedge)

ii)It sure looks like Jeffrey Epstein is either an asset of the CIA or the Mossad.  In 2008 he gets off due to his “intelligence”.  Is Epstein using blackmail to garner information?

(Giraldi// American Herald Tribune)

iii)Epstein is not having a good day as 12 more victims come forward and that should stpo his release and also bring on the new case against him

(zerohedge)

iv)Acosta resigns

(courtesy zerohedge)

v)Expect a showdown between Republicans and Democrats as the House votes to block Trump from engaging in an Iranian war unless Congress approves first

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

 

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A HUGE SIZED 7766 CONTRACTS TO A LEVEL OF 595,495 WITH THE LOSS OF $5.25 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  GIGANTIC SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 13,150 EFP CONTRACTS WERE ISSUED:

 FOR AUGUST; 13,150 CONTRACTS: DEC: 0   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  13,150 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: 5384 TOTAL CONTRACTS IN THAT 13150 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A HUGE SIZED 7766 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 ::  5384 CONTRACTS OR 538,400 OZ OR 16.75 TONNES.

 

We are now in the NON  active contract month of JULY and here the open interest stands at 22 CONTRACTS as we LOST 55 contracts.  We had  57notices filed yesterday so we surprisingly gained 2 contracts or 200 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.  We continue to witness continual queue jumping in gold as the crooks search out badly needed physical metal. The next big active month for deliverable gold is August and here the OI FELL by a strong 22,653 contracts DOWN to 339,821. The next contract month is the non active month of September and here we lost 11 contracts down to 174. Next up is October and here the OI rose by 1075 contracts up to 18,759.

 

 

 

TODAY’S NOTICES FILED:

WE HAD 5 NOTICES FILED TODAY AT THE COMEX FOR  500 OZ. (0.0155 TONNES)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total COMEX silver OI FELL BY A TINY SIZED 380 CONTRACTS FROM 219,540 DOWN TO 219,160 (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 TINY  OI COMEX LOSS OCCURRED WITH A 9 CENT LOSS IN PRICING.//YESTERDAY.

 

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF JULY.  HERE WE HAVE 550OPEN INTEREST STAND FOR DELIVERY WITH A GAIN OF 9 CONTRACTS.  WE HAD 3 NOTICES FILED YESTERDAY SO WE GAINED 12 CONTRACTS OR AN ADDITIONAL 60,000 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 3 CONTRACTS UP TO 1143.  THE NEXT BIG ACTIVE DELIVERY MONTH AFTER AUGUST IS SEPT AND HERE THE OI FELL BY 1472 CONTRACTS DOWN TO 151,513 CONTRACTS.

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 20 notice(s) filed for 100,000 OZ for the JULY, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY: 287,871  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  468,261  contracts

 

 

 

 

 

INITIAL standings for  JULY/GOLD

JULY 12/2019

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
5 notice(s)
 500 OZ
(0.0155 TONNES)
No of oz to be served (notices)
17 contracts
(1700 oz)
0.052788 TONNES
Total monthly oz gold served (contracts) so far this month
833 notices
83,300 OZ
2.5909 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 1 adjustment today:
Out of HSBC and this is a settlement of 2 tiny contracts:  201.07 oz was adjusted out of the dealer and this landed into the customer account at HSBC

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 5 contract(s) of which 3 notices were stopped (received) by j.P. Morgan dealer and 10 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 (833) x 100 oz , to which we add the difference between the open interest for the front month of  JULY. (22 contract) minus the number of notices served upon today (5 x 100 oz per contract) equals 85,000 OZ OR 2.6438 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 (833 x 100 oz)  + (22)OI for the front month minus the number of notices served upon today (5 x 100 oz )which equals 85,000 oz standing OR 2.6438 TONNES in this  active delivery month of JUNE.

We GAINED contracts or an additional 200 oz will stand as these guys refused to morph into London based forwards as well as negating a fiat bonus. Somebody was in need of physical gold badly on this side of the pond…VERY UNUSUAL TO SEE QUEUE JUMPING CONTINUE 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 10.0412 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 2.6438  TONNES OF GOLD STANDING// THEY SEEM TO BE USING CONSIDERABLE GOLD VAPOUR TO SETTLE UPON UNSUSPECTING LONGS.

 

 

 

total registered or dealer gold:  322,825.827 oz or  10.0412 tonnes 
total registered and eligible (customer) gold;   7,696,026.969 oz 239.37 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 12 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 277,563.068 oz
CNT

 

 

Deposits to the Dealer Inventory
NIL oz

 

Deposits to the Customer Inventory
2948.403 oz
Delaware
No of oz served today (contracts)
20
CONTRACT(S)
(100,000 OZ)
No of oz to be served (notices)
530 contracts
 2,650,000 oz)
Total monthly oz silver served (contracts) 3637 contracts

18,185,000 oz)

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

**

 

we had 0 inventory movement at the dealer side of things

 

 

total dealer deposits: NIL  oz

total dealer withdrawals: nil oz

we had  1 deposits into the customer account

into JPMorgan:  nil  oz

ii)into Delaware:  2,948.403 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:  2948.403  oz

 

we had 1 withdrawals out of the customer account:

 

i) out of CNT: 277,563.068 oz

 

 

 

 

 

 

total 277,563.068  oz

 

we had 0 adjustments :

 

 

 

total dealer silver:  91.993 million

total dealer + customer silver:  306.648 million oz

 

The total number of notices filed today for the JULY 2019. contract month is represented by 20 contract(s) FOR 100,000 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 3637 x 5,000 oz = 18,185,000 oz to which we add the difference between the open interest for the front month of JULY. (550) and the number of notices served upon today (20 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JULY/2019 contract month: 3637 (notices served so far) x 5000 oz + OI for front month of JULY (550) number of notices served upon today (20)x 5000 oz equals 20,835,000 oz of silver standing for the JULY contract month.

WE GAINED 12 CONTRACTS OR AN ADDITIONAL 60,000 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 20 notice(s) filed for 100,000 OZ for the JUNE, 2019 COMEX contract for silver

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  48,607 CONTRACTS (we had considerable spreading activity..accumulation

 

CONFIRMED VOLUME FOR YESTERDAY: 66,081 CONTRACTS..(we no doubt had considerable spreading activity as they are now starting to accumulate in silver)

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 66,081 CONTRACTS EQUATES to 330 million  OZ 47.2% 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 -0.21% JULY 12/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.87% to NAV (JULY 12/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -0.21%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 13.68 TRADING 13.15/DISCOUNT 3.87

END

And now the Gold inventory at the GLD/

 

JULY 12/WITH GOLD UP $5.20 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 800.54 TONNES

JULY 11.WITH GOLD DOWN $5.25: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 800.54 TONNES

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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

JULY 12/2019/ Inventory rests tonight at 800.54 tonnes

*IN LAST 622 TRADING DAYS: 134.22 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 522 TRADING DAYS: A NET 31.46 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

 

end

 

Now the SLV Inventory/

JULY 12/WITH SILVER UP 10 CENTS: NO CHANGE IN SILVER INVENTORY/INVENTORY RESTS AT 332.518 MILLION OZ//

JULY 11/NO CHANGE IN SILVER 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//

 

JULY 12/2019:

 

 

Inventory 322.394 MILLION OZ

LIBOR SCHEDULE AND GOFO RATES:

 

seems that they are offering to lend gold real cheap to encourage the raid!!

 

YOUR DATA…..

6 Month MM GOFO 2.22/ and libor 6 month duration 2.21

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

G0LD LENDING RATE: + .01

 

XXXXXXXX

12 Month MM GOFO
+ 2.15%

LIBOR FOR 12 MONTH DURATION: 2.19

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.04

end

 

PHYSICAL GOLD/SILVER STORIES

 

end
i) GOLDCORE BLOG/Mark O’Byrne

Facebook Should Link its Libra Cryptocurrency to Gold – Steve Forbes

Billionaire publisher Steve Forbes wrote a letter to Mark Zuckerberg last week encouraging Facebook to back Libra with gold:

Dear Mr. Zuckerberg:

Your company made big headlines when it announced it would be launching a cryptocurrency called the Libra in 2020. Not surprisingly, given the nature of the times, the project has been greeted with intense criticism and skepticism. Don’t lose heart. In one sense, the idea of a company creating its own kind of money is an old one. The airlines’ frequent-flier miles are really a form of money that customers can earn and use to buy trips and various other things. Credit card companies, hotels and numerous retailers have all sorts of loyalty programs in which people earn points that will let them buy all manner of goodies.

 “But if you play your cards right with the Libra, you could be to money and finance what Henry Ford was to automobiles. Your new currency could take its place alongside the inventions of coins and paper money many centuries ago.

It could replace the U.S. dollar as the global currency. “

Full article via Forbes here

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

News and Commentary

Trump: I’m ‘not a Fan’ of Cryptocurrencies, and Facebook May Need a Banking Charter for Libra

Gold Declines as Treasury Yields Advance, Dollar Pares Losses

China Copper Imports in June Plunge 27% From a Year Earlier

Disastrous Bond Auction Sparks Rate-rout Selloff in Stocks

Is Silver Really a Better Buy Than Gold?

Get Ready for Epic Levels of Monetary Debasement

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

11-Jul-19 1423.10 1413.75 1135.06 1126.62 & 1262.72 1255.83
10-Jul-19 1395.45 1408.30, 1117.34 1126.78 & 1243.35 1252.68
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

GOLDNOMICS PODCAST (Episode 12)

Watch Podcast Here or Listen on Apple PodcastsSoundCloud or Blubrry

Receive Our Free Daily or Weekly Updates by Signing Up Here

Mark O’Byrne
Executive Director

ii) Physical stories courtesy of GATA/Chris Powell

My goodness: this central bankers is soooo dumb! After accumulating gold he wants now to reverse course by buy Chinese debt and USA debt as reserves?????

(Bloomberg/GATA)

 

Central banker with too much gold wants Treasuries instead

 Section: 

By Evgenia Pismennaya and Anna Andrianova
Bloomberg News
Thursday, July 11, 2019

With trade wars and sluggish growth making goldbugs of central bankers around the world, one country wants to buck the trend.

The central Asian nation of Uzbekistan is unwinding decades of isolation, opening its economy and modernizing its markets after the death in 2016 of Islam Karimov, the country’s ruler for the previous quarter-century.

… 

Currency controls have been rolled back, the government debuted eurobonds in February, and now central bank Governor Mamarizo Nurmuratov is looking to buy U.S. and Chinese sovereign debt as he diversifies the nation’s $26 billion of international reserves away from the yellow metal.

“We want to buy U.S. paper and the debt of other countries, including China,” Nurmuratov, 59, said in an interview in St. Petersburg, Russia. “The share of gold is near 50%, but in the future it can be lower.” …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-07-11/central-banker-with-t…

end

We need a reliable measure of value across borders and through time:  the only answer is gold and silver

(courtesy Judy Shelton/gATA)

Judy Shelton: We need a reliable measure of value — across borders and through time

 Section: 

Gee — What does that sound like?

* * *

Forget ‘Hawks” and ‘Doves.’ We Need a Level Monetary Playing Field

By Judy Shelton
The Washington Post
Thursday, July 11, 2019

https://www.washingtonpost.com/opinions/forget-hawks-and-doves-at-the-fe…

More than a decade has passed since the devastating global financial meltdown. Ben Bernanke, Federal Reserve chairman at the time, described it as “the worst financial crisis in global history, including the Great Depression.” The 2008 debacle’s economic and political repercussions are still playing out, with damaging effects on social cohesion.

Given that the central bank of the United States had more influence than any other government institution over the creation of money and credit in the lead-up to the disaster, it is important to be able to include the Fed in discussions of how best to safeguard financial stability and promote productive economic growth. Questioning the Fed’s infallibility in making monetary policy decisions should not be interpreted as an attack on its “independence” but rather an honest effort to stir much-needed debate.

One major aspect of monetary policy that has not received sufficient examination is the international role of the U.S. dollar and how trade flows are affected by interest-rate policies implemented by the world’s other major central banks. Central bank actions are a powerful force driving exchange rates among leading currencies, which helps explain why financial markets obsess over every syllable in statements by central bank officials.

History can be especially informative when it comes to evaluating the relationship between optimal economic performance and monetary regimes. In the 1930s, for example, the “beggar thy neighbor” tactic of devaluing currencies against gold to gain a trade export advantage hampered a global economic recovery. Yet today little attention is focused on the role of the differential interest-rate policies pursued by central banks in causing the currency shifts that alter the terms of trade among competing producers in world markets and raise tensions among trading partners.

The absence of rules aimed at maintaining a level monetary playing field invites currency manipulation that could spark a backlash against the concept of free trade. Countries engaged in competitive depreciation undermine the principles of genuine competition, and those that have sought to participate in good faith in the global marketplace are unfairly penalized by the monetary sleight of hand executed through central banks.

U.S. leadership is necessary to address this fundamental violation of free-trade practices and its distortionary impact on free-market outcomes. When the United States’ trading partners engage in currency manipulation, it is not competing — it’s cheating.

That is why it is vital to weigh the implications of U.S. monetary policy on the dollar’s exchange-rate value against other currencies. Trade and financial flows can be substantially altered by speculative market forces responding to the public comments of officials at the helm of the European Central Bank, the Bank of Japan or the People’s Bank of China — with calls for “additional stimulus” alerting currency players to impending devaluation policies.

When currencies shift downward against the dollar, it makes U.S. exports more expensive for consumers in other nations. It also discounts the cost of imported goods compared with domestic U.S. products. Downshifting currencies against the dollar has the same punishing impact as a tariff. That is why, as in the 1930s during the Great Depression, currency devaluation prompts retaliatory tariffs.

Ultimately, it is the set of economic policies that a nation adopts that determines its success. Greater opportunity and prosperity depend on a pro-growth agenda that substantially reduces the regulatory burden on business, cuts taxes, unleashes energy initiatives and diligently seeks improved trade relationships. Stable money is also an important pillar: The Fed should focus on nurturing a strong U.S. economy while ensuring a level international monetary playing field. Monetary policy must take into account both objectives.

The goal shouldn’t be to achieve a strong dollar or a weak dollar, but a dependable dollar. In a world with some $13 trillion in negative-yielding debt largely engineered by the European Central Bank, and a bizarre yield curve that has the Fed paying 2.35 percent interest on excess bank reserves while the 10-year U.S. Treasury rate hovers around 2.05 percent, a rising dollar would not be helpful. Borrowers around the world hold trillions in dollar-denominated debt; a monetary misstep that exacerbated exchange-rate pressures could raise the specter of global financial instability.

Given the need to reconcile domestic and international monetary objectives, the old labels of “hawks” vs. “doves” — focused strictly on domestic monetary policy — at the Federal Reserve are no longer useful. What’s needed is a woodpecker to hammer away with a message about the importance of money serving as a reliable measure of value — across borders and through time.

—–

Judy Shelton is an economist and the author of “Money Meltdown: Restoring Order to the Global Currency System.” President Trump has announced that he plans to nominate her to the Federal Reserve Board.

* * *

Join GATA here:

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
Friday-Monday, November 1-4, 2019

https://neworleansconference.com/

* * *

Help keep GATA going

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

http://www.gata.org

To contribute to GATA, please visit:

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

end

Dave Kranzler correctly states that the Fed Chairman has got it wrong with a gold standard.  If a country has a gold standard, a central bank is not needed.

(courtesy Dave Kranzler/IRD/GATA)

Dave Kranzler: Fed chairman fails the gold standard test

 Section: 

11:24a ET Thursday, July 11, 2019

Dear Friend of GATA and Gold:

Dave Kranzler of Investment Research Dynamics today scolds Federal Reserve Chairman Jerome Powell for misunderstanding the central bank’s role under a gold standard. Under a gold standard, Kranzler writes, the United States would not need a central bank at all. His commentary is headlined “Jerome Powell Fails the Gold Standard Test” and it’s posted at IRD here:

http://investmentresearchdynamics.com/jerome-powell-fails-the-gold-stand…

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

end

What a joke: London’s gold market is more liquid (in physical metal) than bonds ..so says the crooked LBMA

(courtesy Reuters/GATA)

London’s gold market is more liquid than bonds, LBMA says

 Section: 

But of course, since it’s infinite paper.

* * *

By Peter Hobson
Reuters
Thursday, July 11, 2019

LONDON — London’s gold market is much more liquid than government or corporate bonds, the London Bullion Market Association said today, presenting new figures it said meant gold should not be subject to tough new liquidity rules.

The rules, due to go into force in the European Union in 2021, treat physically traded gold and other precious metals like any other commodity and require banks to hold more assets to match their exposure as a buffer against adverse price moves.

… 

The LBMA has lobbied for precious metals to be exempt, arguing the regulation is unnecessary and would disrupt London’s bullion clearing system, which settles gold transactions worth around $25 billion a day. …

… For the remainder of the report:

https://www.reuters.com/article/gold-regulation-nsfr/londons-gold-market…

end

Pam and Russ note the similarity between what happened in 2008 and today.

A must read..

(courtesy Pam and Russ Martens/GATA/WallStreet on Parade)

Pam and Russ Martens: Is there a stealth financial crisis? Alarms are ringing

 Section: 

By Pam and Russ Martens
Wall Street on Parade
Thursday, July 11, 2019

Shhh! Don’t wake the Wall Street bank regulators from their decade-long slumber to whisper in their ear that the same critical signs they ignored in 2007 and early 2008 are rearing their ugly heads again.

Let’s take a look at the clear warning signs that began in July 2007 and then contrast them against what is happening today.

… 

On July 17, 2007, Bear Stearns announced that two of its hedge funds, which had held about $1.5 billion in investor capital in the first quarter of the year, were now mostly worthless. On August 9, 2007, BNP Paribas, France’s largest publicly traded bank, announced it was freezing customer withdrawals from three of its funds, effectively preventing customers from accessing $2.2 billion. It cited “evaporation of liquidity” and the inability “to value certain assets.”

Fast forward to today: On June 3, 2019, one of Britain’s highest-profile money managers, Neil Woodford, stunned global markets by announcing that his firm’s flagship fund, the $4.7 billion Woodford Equity Income Fund, would freeze customer withdrawals. The decision resulted from heavy outflows and a large stake in illiquid stocks. The U.K. securities regulator, the Financial Conduct Authority, has opened an investigation into the matter. …

… For the remainder of the commentary:

http://wallstreetonparade.com/2019/07/is-there-a-stealth-financial-crisi…

* * *

end

I brought the following important article to your attention yesterday but I am repeating it.  GoldMoney’s Alasdair Macleod on analyzing the futures market positioning of large traders concludes that we have a “whale” on the loose who first suppressed the price of silver and then more recently accumulated the metal..that whale is non other than Mainland, sovereign China.

(courtesy Alasdair Macleod/GoldMoney/GATA)

 

Alasdair Macleod: A whale is accumulating silver futures, probably China acting through JPM

 Section: 

3:09p ET Thursday, July 11, 2019

Dear Friend of GATA and Gold:

GoldMoney research director Alasdair Macleod, analyzing the futures market positioning of large traders and hearing from silver miners about how they sell their product, concludes today that a “whale” has been loose in the silver market, first suppressing prices to facilitate accumulation of metal, more recently hedging itself in preparation for higher prices. Macleod believes that the “whale” is the People’s Bank of China and that JPMorganChase is acting as its broker.

Macleod’s analysis is headlined “A Whale Is Accumulating Silver Futures” and it’s posted at GoldMoney here:

https://www.goldmoney.com/research/goldmoney-insights/a-whale-is-accumul…

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

iii) Other physical stories:

Nicholas adds to the “whale silver story”

Nicholas Biezanek

3:27 AM (10 minutes ago)

to Williamme
HI Bill/ Harvey,
Alasdair Macleod made the following statement in an article yesterday:
In the context of the silver futures market it is huge. But it seems unlikely to be an attempt to corner the silver market, because Comex-registered vaults have about 9,500 tonnes of silver bullion and LBMA vaults at the end of March had 36,195 tonnes. In other words, there is 1.66 times annual mine supply in these two vaulting systems alone. Given healthy vaulting supply, someone attempting a repeat of the Bunker-Hunts’ attempt to corner the market in 1979 has a massive hill to climb, particularly when such an attempt might be thwarted by the regulators changing the rules.
Whilst I always read with interest anything Alasdair hasto say, I make the following observations:maybe eligible COMEX silver is in general play -who knows (eligible silver comprises 6,685 tonnes of the 9,500 figure quoted above).But in respect of the LBMA,the following must be borne in mind.When the LBMA discloses loco London silver vault holdings, the aggregate figure includes all the SLV holdings Moreover,even if unallocated silver accounts with LBMA custodians and sub custodians are a wretched joke, what about all those claims of allocated silver account holders on this LBMA vaulted silver? The LBMA would never ever disclose (even if it has this information) the extent of criminal fractional reserving as practiced by its custodians. In the case of gold, the most conservative estimate is 100/1 (upper range about 500/1)-I have not sighted any fractional reserving estimates in respect to silver.Deutsche Bank has about Euro 1.35 trillion assets on its balance sheet. How can there be a problem with such a cornucopia of assets in play? There is,however, a huge problem here because of all the claims on those assets. Just because the LBMA never ever discloses any information  about all the myriad of claims on the total vaulted silver in loco London does not mean that somehow there is ‘healthy vaulting supply -as claimed above.If I am wrong, please let all of us in GATA know, as nearly two decades of research amount to disinformation if the world is actually awash with physical vaulted silver supply.
Regards
Nicholas
end
The dangers of crypto exchanges and crypto currencies…they can be hacked.
Today a big Japanese crypto exchange suffered a 32 million hack
(courtesy Huillet/CoinTelegraph)

Japanese Crypto Exchange Suffers $32 Million Hack

Authored by Marie Huillet via CoinTelegraph

Japanese crypto exchange Bitpoint has suspended all services after losing $32 million in a hack involving XRP, Bitcoin (BTC) and other cryptocurrencies.

In an official announcement on July 12, Bitpoint revealed that it had lost around 3.5 billion yen (~$32 million) — 2.5 billion yen (~$23 million) of which belonged to customers and 1 billion (~$9.2 million) to the exchange.

 

Courtesy of CoinTelegraph

Bloomberg reports that shares of Bitpoint’s parent firm Remixpoint Inc. shed 19% following news of the incident, and were untraded in Tokyo as of 1:44 p.m. “on a glut of sell orders.”

Alongside XRP and Bitcoin, a total five different cryptocurrencies had been stored in the affected hot wallets, including Litecoin (LTC) and Ether (ETH).

The exchange’s cold wallets are not reportedly thought to have been compromised, Bitpoint’s announcement indicates.

Bitpoint was one of multiple domestic crypto exchanges to have been served a business improvement order from Japan’s financial regulator, the Financial Service Agency (FSA), during its wide-ranging inspections of industry businesses, per Bloomberg.

As previously reported, the industry record-breaking hack of $534 million of NEM from Japan’s Coincheck exchange in January 2018 had been attributed to the fact that the coins were stored in a low-security hot wallet.

In 2019, May’s $40 million hack of top crypto exchange Binance has loomed large over the industry – at least eight crypto exchanges have been the target of large-scale hacking incidents in the first half of this year, most recently Singapore-based Bitrue.

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 FRIDAY 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: 6.8811/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.8813   /shanghai bourse CLOSED UP 12.79 POINTS OR 0.44%

HANG SANG CLOSED UP 39.82 POINTS OR 0.14%

 

2. Nikkei closed UP 42.37 POINTS OR 0.20%

 

 

 

 

3. Europe stocks OPENED ALL GREEN EXCEPT GERMAN DAX/

 

 

 

USA dollar index UP TO 96.99/Euro RISES TO 1.1256

3b Japan 10 year bond yield: FALLS TO. –.11/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.28/ 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:: 60.31 and Brent: 66.70

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.20%/Italian 10 yr bond yield UP to 1.73% /SPAIN 10 YR BOND YIELD UP TO 0.54%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.93: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield RISES TO : 2.34

3k Gold at $1407.65 silver at: 15.13   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 24/100 in roubles/dollar) 63.04

3m oil into the 60 dollar handle for WTI and 66 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 108.28 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 .9854 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1096 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 0.20%

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 2.13% early this morning. Thirty year rate at 2.65%

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

6.  TURKISH LIRA:  UP  TO 5.7188..

All News Is Good News” As S&P Rises Above 3,000 While Bond Selloff Accelerates

This is one of those morning where bad news is good news for stocks while good news is bad news for bonds… or in other words, any news is good for stocks.

Despite fresh all time highs in US equities, where the S&P is set to open above 3,000 after closing at 2,999.9 on Thursday, world shares came within a whisker of posting their first weekly loss since May on Friday and the dollar was down for a third day, even as a stronger-than-expected U.S. inflation print failed to shake bets on Federal Reserve interest rate cuts.

 

With U.S. equity futures rising further after the S&P 500 Index closed Thursday at a record high on hopes the global economy will slow even more, forcing the Fed to cut by 50bps and more thereafter, European stocks ticked higher in early trade following the latest dismal trade data out of Asia, with gains in auto and chemical shares pushing the benchmark Stoxx 600 toward its first increase this week.

Earlier in the session, the MSCI index of Asia-Pacific shares outside Japan was down 0.1%, with the regional benchmark set for its first weekly decline since May, as investors continued to monitor trade tensions between the U.S. and China. Markets in the region were mixed, with China, Hong Kong and South Korea advancing and Indonesia, Australia and Japan dropping. Financial firms gained while communications and technology companies retreated. The Topix slipped 0.2%, with Bandai Namco, Keyence and Fanuc among the biggest drags. South Korea called for an international probe into Japanese claims that it allowed the export of sensitive materials to North Korea, as disputes escalated between Seoul and Tokyo. The Kospi gauge closed 0.3% higher. The Shanghai Composite Index rose 0.4%, supported by large insurers and banks. Beijing said trade talks with the U.S. will restart, while stressing its core concerns. The S&P BSE Sensex Index was little changed. After recent elections, India is positioned to overhaul a regulatory environment that could deter foreign investments, U.S. Commerce Secretary Wilbur Ross said.

As reported earlier, following a dismal GDP print out of Singapore, where the economy unexpectedly contracted by 3.4% with consensus expecting an increase…

… investor attention then turned to China, whose export growth slowed in June and imports shrank more than expected: specifically, exports fell 1.3% in June from a year ago and imports shrank a more-than-expected 7.3%. On top of that its trade surplus with the United States, a major source of friction with its biggest trading partner, rose to $29.92 billion in June from $26.9 billion in May.

 

The latest poor trade data comes after a string of disappointing economic reports from around the globe, which showed that the global economy suffered from a protracted U.S.-China trade war that forced major central banks to take a more accommodative stance, which in turn has pushed US stocks to fresh all time highs. China is also due to release second-quarter GDP figures on Monday which are expected to show the world’s second-largest economy slowing to its weakest pace in at least 27 years.

There was a modest silver lining in the latest industrial production figures for the euro zone, which contracted -0.5%, stronger than the -1.6% expected, even if this was the 3rd consecutive negative print leaving economists split on whether the numbers will reveal any meaningful signs of recovery, and whether it would have any impact on the ECB’s dovish state of mind, as consensus now expected a 0.10% rate cut and return of QE.

 

European Central Bank policymakers gathering last month agreed on the need to be ready to provide more stimulus to the euro zone economy in an environment of “heightened uncertainty”, official minutes of the meeting showed on Thursday.

In FX, the dollar was lower for a third straight day, down 0.1%. A stronger-than-expected inflation print failed to shake  convictions that the Federal Reserve will start cutting interest rates at a policy meeting later this month. On Thursday, the core CPI index rose 0.3% in June, the largest increase since January 2018, data on Thursday showed. The reading pushed U.S. Treasury yields higher, but money markets still indicated one rate cut at the end of July and a cumulative 64 basis points in cuts by the end of 2019. The lira weakened after Turkey said it started receiving parts of a Russian-made missile defense system, a move opposed by the U.S.

Comments by Chicago Fed President Charles Evans scheduled later on Friday and New York Fed President John Williams on Monday will provide a chance to gauge how dovish the central bank is, said Masafumi Yamamoto, chief forex strategist at Mizuho Securities. “If these Fed officials are not as dovish as Powell, and if the New York Fed’s manufacturing survey on Monday proves stronger than forecast, they could show that the dollar weakening in response to Powell’s congressional testimony was overdone.”  Elsewhere in currencies, the euro got a boost from a selloff in the German bond market, rising 0.1% to $1.1270.

In rates, the recent rout continued as European government bonds extended their declines, heading for the worst week since at least October, after the industrial output print beat. German government bonds were set for their biggest weekly selloff in nearly one-and-a-half years, as yields jumped from -0.40% to -0.24% and the French 10Y yield has risen from -0.14% to +0.06%, as signs of economic strength in the United States and parts of Europe suggested fears of a downturn may be overdone.

Meanwhile, in the latest blow to the US-China trade ceasefire, President Donald Trump complained that China hasn’t  increased its purchases of American farm products, a promise he said he had secured at his G-20 meeting with the  country’s president Xi Jinping last month. That did not stop Trump’s trade advisor Peter Navarro to lie to the world, declaring that US-China trade talks are going great.

In commodities, Elsewhere, WTI oil headed for its sixth advance in seven sessions and hovered near six-week highs as operators in the Gulf of Mexico braced for Tropical Storm Barry.

Global benchmark Brent crude gained 0.77% to $67.03 per barrel. U.S. West Texas Intermediate (WTI) crude was up 0.68% to $60.57 a barrel. Gold prices regained their shine thanks to renewed trade worries and rate cut expectations. Spot gold last traded up 0.5% at $1,410.99 per ounce. Cryptos rose after Trump’s trash talking tweet.

It’s a quiet calendar, with the only expected data coming from US PPIs. MTY Food Group is reporting earnings

Market Snapshot

  • S&P 500 futures up 0.2% to 3,011.00
  • STOXX Europe 600 up 0.2% to 387.43
  • MXAP down 0.09% to 160.16
  • MXAPJ down 0.1% to 525.49
  • Nikkei up 0.2% to 21,685.90
  • Topix down 0.2% to 1,576.31
  • Hang Seng Index up 0.1% to 28,471.62
  • Shanghai Composite up 0.4% to 2,930.55
  • Sensex up 0.3% to 38,949.50
  • Australia S&P/ASX 200 down 0.3% to 6,696.55
  • Kospi up 0.3% to 2,086.66
  • German 10Y yield rose 0.4 bps to -0.221%
  • Euro up 0.09% to $1.1264
  • Italian 10Y yield fell 3.6 bps to 1.345%
  • Spanish 10Y yield rose 6.0 bps to 0.536%
  • Brent futures up 1.1% to $67.22/bbl
  • Gold spot up 0.5% to $1,410.31
  • U.S. Dollar Index down 0.1% to 96.94

Top Overnight News from Bloomberg

  • China’s export growth slowed in June and imports shrank more than expected, as the continuing trade war with the U.S. and a global slowdown hurt trade
  • Deeply negative yields on Europe’s highest-rated bonds are driving investors seeking the right mix of returns and safety into assets such as interest-rate swaps
  • Turkey says it received on Friday the first major cargo of a Russian missile-defense system whose purchase has drawn the threat of U.S. sanctions over its potential to undermine NATO’s military capabilities. The lira weakened
  • Britain raised the threat level to the highest possible for ships operating in the Persian Gulf as tensions escalate in a region accounting for a third of seaborne petroleum trade
  • Europe’s economy got a shot in the arm on Friday with a report showing the biggest jump in industrial production in four months. Output jumped 0.9% from the previous month, beating the 0.2% median estimate of economists
  • Federal Reserve Chairman Jerome Powell suggested that the central bank has room to ease monetary policy as the tie between the inflation and jobless rates has broken down
  • Donald Trump complained that China hasn’t increased its purchases of American farm products, a promise he said he had secured at a meeting with the country’s president, Xi Jinping, at the Group of 20 summit last month
  • German Economy Minister Peter Altmaier sees a 50% chance of the European Union striking a trade agreement on industrial goods with the U.S., possibly this year
  • S&P Global Ratings is the first foreign credit-rating company to rate domestic Chinese bonds after awarding its top score to a unit of the country’s largest bank
  • The Trump administration will hold off on imposing sanctions against Iranian Foreign Minister Javad Zarif, two people familiar with the matter said on Thursday evening
  • Japan’s Government Pension Investment Fund bought about 1.3 trillion yen ($12 billion) of foreign bonds on a currency- hedged basis during the fiscal year ended March 31, according to its annual report. This is the first time it has bought debt overseas with currency hedging already in place, according to a person with knowledge of the matter
  • China may remain the “primary threat” to the U.S. military for as long as a century after learning how to fight more effectively by watching American wars in the Middle East, President Donald Trump’s nominee to lead the Joint Chiefs of Staff said

Asian equity markets were somewhat cautious as the region awaited the latest Chinese trade data and following a mixed performance on Wall St. where markets were tentative amid a plethora of Fed speakers, although the DJIA outperformed and rose above the previously uncharted 27K level. ASX 200 (-0.3%) was dragged lower by most mining-related sectors but with downside stemmed by resilience in the largest-weighted financials industry and strength in energy after news Santos is considering a takeover of rival Oil Search, while Nikkei 225 (+0.2%) mirrored an indecisive currency with index giant Fast Retailing the outperformer after it posted 9-month profit growth. Hang Seng (+0.2%) and Shanghai Comp. (+0.4%) were choppy ahead of the Chinese trade figures and after PBoC inaction resulted to a net weekly drain of CNY 220bln, although Chinese press reports continued to suggest potential for lower rates in China and more room for easing. Finally, 10yr JGBs followed suit to the weakness of their counterparts in US where the curve bear steepened in the aftermath of firmer than expected CPI data, while the tentative risk tone and BoJ presence for JPY 940bln of JGBs also failed to provide support for prices.

Top Asian News

  • JPMorgan’s $50 Billion Fund Halves EM Holdings on Trade Risk
  • Jokowi Vows Sweeping Indonesia Reforms: ‘I Have Nothing to Lose’
  • China Trade Slows, Imports From U.S. Slump as Tariffs Take Toll
  • AB InBev Asia Unit Is Said to Struggle to Price Hong Kong IPO

Major European Indices are little changed, and haven’t substantially deviated from their mildly positive opening levels [Euro Stoxx 50 +0.1%]. The Dax (U/C) was waylaid in pre-market trade where the future was initially higher by around 0.4%, however, following Daimler (-1.3) stating that their Q2 EBIT is to be significantly below expectations, at EUR -1.6bln vs. Prev. EUR +2.6bln, futures then indicated a lower open for the bourse. The profit warning from Daimler did impact the opening calls and initial cash levels for its major counterparts though the likes of Volkswagen (1.0%) and BMW (U/C) have largely recovered. Other notable movers this morning include, Ab InBev (-2.0%) who are subdued following a sources report that Budweiser’s Hong Kong unit will not price its IPO before Friday; follows on from reports earlier in the week that the pricing is to be at the lower end of the indicative range. A beat on EBIT Exp. has pushed EMS-Chemie (+6.0%) to the top of the Stoxx 600, with Swatch (+3.6%) just below this after being upgraded to buy at Goldman Sachs. Finally, and perhaps this mornings largest mover is Thomas Cook (-44.0%) after the Co. announced they are seeking a GBP 750mln injection from the Fosun Group, which would give the group a controlling stake in the tour operator and a minority interest within the airline its self; with the majority of the Co’s GBP 1.4bln in debt to be written off and converted into shares diluting the value for existing shareholders, hence the overwhelmingly negative reaction to this news.

Top European News

  • Thomas Cook Seeks $940 Million Rescue Led by Investor Fosun
  • European Industry Shows Signs of Life as Output Beats Estimates
  • Swedish Bank SEB Tops Estimates as Rivals Mired in Scandal
  • Russia’s 22% Returns Leave Sanctions-Wary Investors In the Dust

In FX, we start with AUD/NZD/CAD/CHF – The non-US Dollars continue to prosper at the expense of their major counterpart, with the Aussie back on the 0.7000 handle, albeit just, Kiwi inching closer towards 0.6700 and Loonie not far from 1.3000 where big barriers reside having breached last week’s pre-NFP and prior 2019 peak of 1.3038. Usd/Cad continues to decline on Fed/BoC policy divergence as the former seems almost certain to deliver an insurance cut at the end of the month, while the latter is sticking to a neutral stance. Similarly, Aud/Usd is realigning after the RBA’s consecutive 25 bp OCR reduction and shift to wait-and-see mode, while Nzd/Usd appears to be biding time ahead of next week’s Q2 NZ inflation data that will be a key driver for the RBNZ. Elsewhere, the Franc is also gaining further ground vs the Buck after surpassing 0.9900, but also outperforming against the Euro with the cross eyeing 1.1100 following a break below 1.1150.

  • GBP/JPY/EUR/SEK/NOK – All moderately firmer, as Cable holds above 1.2500 and the Yen pivots 108.50 in close proximity to decent expiry options (1.2 bn between 108.50-40). However, the Pound has drifted back down from recovery highs closer to 1.2600 amidst dovish comments from BoE’s Vlieghe in the event of a no deal Brexit when he believes rates could be set near zero, while Usd/Jpy remains reluctant to venture too far under 108.00. By the same token, the single currency is still confined below 1.1300 amidst an array of expiries spanning 1.1250 (1 bn), 1.1270-75 (1.1 bn) and the big figure (1.1 bn), with no real boost from better than expected Eurozone ip data even though EGB yields have rebounded further in response. Hence, Eur/Sek has now slipped through 10.5500 and Eur/Nok is straddling 9.6100, though the Swedish Krona has been underpinned to an extent by Riksbank minutes retaining guidance for a repo hike around the turn of the year and its Norwegian neighbour is underpinned by firm oil prices.
  • EM – Although the Greenback is off lows and the DXY is probing 97.000+ levels again, the latest leg up in Usd/Try is mainly due to heightened US/EU-Turkey angst and anticipation that tougher sanctions are on the way. Note also, the Lira’s lurch towards 5.7150 at one stage also came amidst reports that the first batch of S-400 missile system components have arrived from Russia.

In commodities, WTI and Brent are in positive territory and adding to the weeks gains of around USD 4.0/bbl on the back of significant drawdowns in weekly crude data, ongoing geopolitical tensions including the seizure of Iran’s Grace 1 which is carrying 2.1mln/bbl of light crude and the Gulf of Mexico storm. On the latter, the NHC have most recently stated that Storm Barry may become a hurricane by Friday night or early Saturday, in terms of production, reports are indicating that around 53% of the Gulf’s production is shut; the concern/focus may switch more towards refineries as the storm approaches land with Louisiana representing 20% of the US’ refinery capacity. This morning saw the release of the final monthly oil market report, where the IEA maintained their 2019 global oil demand growth estimate at 1.2mln BPD; for reference, earlier in the week OPEC also maintained their forecast at 1.14mln BPD while EIA cut theirs to 1.07mln BPD. Gold (+0.1%) Is modestly firmer this morning benefiting from the dollars ongoing weakness. However, the metal has drifted back towards the USD 1400/oz mark and if this mornings relatively rangebound trade continues is set to finish the week within a few dollars an ounce of where it started; and indeed in a similar area to the last two weeks closing figures. Elsewhere, copper prices have continued to trade sideways post the key Chinese data, which had little impact on the metal.

US Event Calendar

  • 8:30am: PPI Final Demand MoM, est. 0.0%, prior 0.1%; PPI Ex Food and Energy MoM, est. 0.2%, prior 0.2%
  • 8:30am: PPI Final Demand YoY, est. 1.6%, prior 1.8%; PPI Ex Food and Energy YoY, est. 2.1%, prior 2.3%
  • 9:45am: Bloomberg July United States Economic Survey
  • 10am: Fed’s Evans to Speak on Trade and Economy in Chicago

DB’s Jim Reid concludes the overnight wrap

Just to make sure everyone is up to speed, a final reminder about DB Research at the top today. After some difficult decisions were announced last weekend about the firm’s direction, we want to reiterate that DB Research will remain at the forefront of the firm with strong backing from senior management. 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.

One publication we will continue to publish is our flagship Thematic magazine “Konzept” where we take a big picture theme and use our expertise across research to delve deeper into the relevant issue. The latest edition was out on Wednesday and was entitled “How 5G will change your life” ( link ). In this we look behind the hype of the 5G rollout and examine the unexpected impact on everything from smartphones to factories to politics and Smart Cities. Although to balance things out, do we have a data addiction crisis? We highlight in the report that a third of millennials spend two hours or more each work day looking at their phones for personal activities, according to some reports. Is this part of our current global productivity problem?

Not even 4G could come to my rescue yesterday as all day meetings stopped me seeing a monumentally destructive performance by England’s cricketers to beat Australia in the semi-final of the World Cup. To the uninitiated (most of our global readers), the final is on Sunday against New Zealand at home at Lords in London. So how will I be watching this weekend’s once-in-a-lifetime event? In the ground? In a pub with friends? On the sofa with the children bringing me regular refreshments? No. I’ll be out of the loop on a plane to Asia. What awful planning on my behalf.

Outside of a rare England semi-final win in any sport, yesterday’s main event was the slightly higher-than-expected US CPI report, which surely reduces the chances of a 50bps cut at the end of the month even if market pricing didn’t change too much. The market still implies around 31bps of cuts this month, or around a 17.5% chance for a 50bps cut. That’s just slightly lower than where we were after Powell’s statement was initially released on Tuesday. 10-year yields rose sharply though as we’ll discuss below. Despite the pretty calm Fed pricing, we actually got a slew of new information yesterday.

Apart from day two of Powell’s congressional testimony, in which he largely reiterated his remarks from Tuesday, we also heard from FOMC members Barkin, Bostic, Williams, and Quarles. The first two gave hawkish comments, with Barkin saying “I don’t see the current levels of inflation or inflation expectations as a trigger for additional accommodation” and Bostic responding affirmatively to a question about whether he opposes a rate cut. While hawkish, this could perversely raise the odds for a cut later this month. By illustrating that Barkin and Bostic, two non-voters, are not in favor of easing, it actually raises the odds that voting members are in the pro-cut camp. One of those is likely NY Fed President Williams, who said that “the arguments for adding policy accommodation have strengthened.” Quarles, who focuses more on financial regulation, largely reiterated the comments from Powell.

Through all that noise, ten-year treasury yields grinded higher throughout the session, getting two separate boosts, first from the inflation report and subsequently from a soft 30-year auction. Yields rose +9.9bps from their morning lows, with around +3.2bps happening in the minutes after the CPI data and another +2.8bps immediately following the weak auction and ultimately closed +7.5bps on the day at 2.136%. The 30-year auction, which was held after Europe had already closed up for the day, had a notably largely large tail. The $16bn reopening ended up yielding more than 2bps higher than the when-issued trading level.

At our big FIC forum two weeks ago where there was over $25trn of investable money represented, less than 10% thought we would see 10yr yields at 2.25% before 1.75%. It perhaps shows how stretched things might have got a couple of weeks back. Maybe some of that is unwinding a bit at the moment.

Just on the US inflation data itself, the core printed at an unrounded +0.2942%, which compared with expectations for +0.2%. That pushed the year-on-year rate up a tenth to +2.1% with most of the move driven by payback to some of the outliers from earlier softer data. Of less coverage but of no less interest we had an unexpected upward revision to June CPI in Germany (+0.3% mom from +0.1%) even if France was left unchecked at +0.3% mom. However, the upside was partially driven by calendar effects, so it’ll be important to see if the rise is sustained in the July print.

It was also a fairly weak day for European bonds yesterday as well, with 10y Bunds up +4bps to -0.225% and to the highest level in a month, with yields also up a similar amount across the rest of the continent with the exception of BTPs (-3.7bps) and GGBs (-1.8bps), which seemed to get more of a lift from the risk-on moves. The surprise upward revision to German CPI perhaps played a role in the moves before the US CPI report gave them an extra jolt. Attention also focused on comments from ECB board member Coeure, who downplayed the significance of falling market-based measures of inflation expectations. He said that ECB staff analysis suggests that the recent decline in 5y5y inflation swap rates (-35.6bps this year) have been driven by changes in risk premiums, not actual inflation expectations. If true, this would reduce the pressure on the ECB to ease policy. The ECB meeting minutes, which showed “broad agreement” for action if conditions deteriorate, didn’t really move the needle. Equity markets were certainly a lot more sanguine with the STOXX 600 finishing -0.12% but down for a fifth consecutive session.

In equity markets, the S&P 500 again traded above 3000 intra-day but ultimately ended at 2999.89, so we’ll have to wait for another session to finally close above it. The index slipped between gains and losses during the afternoon but eventually ended +0.23%. The rise in yields and the poor auction slightly held back sentiment, as did a tweet from President Trump attacking China for “letting us down in that they have not been buying the agricultural products from our great farmers that they said they would.” HY spreads tightened -3bps to their narrowest level in over seven weeks, while the dollar and oil both finished close to flat.

This morning in Asia equity markets are trading higher, with the Nikkei (+0.11%), the Hang Seng (+0.55%), the Shanghai Comp (+0.46%) and the Kospi (+0.30%) all trading higher. Meanwhile, S&P 500 futures are +0.26% at 3011.75, suggesting we may have another attempt at closing above the 3,000 mark again today. The moves in Asia come ahead of the release of Chinese trade data this morning, where consensus expectations are that the country’s trade balance will rise to $45.00bn in June, up from $41.65bn in May. Data released overnight also showed the Singaporean economy unexpectedly contracted in the second quarter, by -3.4% (vs +0.5% expected) on an annualized basis, bringing the yoy growth rate down to +0.1% (vs +1.1% expected), the lowest since Q2 2009. Given the country’s dependence on trade, its economy is vulnerable to escalations in the US-China trade war.

Moving on. In Europe yesterday, there was some interest in comments out of the IMF given Lagarde’s incoming presidency at the ECB with the headlines quoting the IMF as saying that if further accommodation was required “the ECB should consider a new asset purchase programme anchored by capital key and possibly broadened to a larger set of assets”. At the same time, it said there may be only “limited room to cut rates further as diminishing returns set in” and that a “possible tiered deposit rate would have a very small impact on aggregate bank profitability and questionable impact on credit conditions”. Food for thought then.

To more fully recap Powell’s comments, he again said the economy is in “a very good place” but stressed concern about “crosscurrents such as trade tensions and concerns about global growth.” He also said that the neutral rate of interest and the neutral rate of unemployment are likely lower than the Fed had previously thought, which means that “monetary policy hasn’t been as accommodative as we had thought.” This adds further evidence in favour of a rate cut at the end of this month.

As for the other data that was out yesterday, in the US, jobless claims declined 13k last week to 209k and the lowest since April. It’s worth noting that there might be some volatility in this data at the moment due to retooling in the auto sector; however, it still continues to underscore the point that the labour sector remains upbeat. Later on, the June monthly budget statement showed a -$8.5bn fiscal deficit for June, as spending (+12.5% yoy) vastly outpaced revenues (+5.6%).

To the day ahead now, which this morning includes May industrial production data for the Euro Area before the June PPI report in the US is due out this afternoon. Away from that and next in line for the Fed is Evans this afternoon when he speaks in Chicago on trade and the economy, while over at the ECB we’re due to hear from Visco while at the BoE Vlieghe is due to speak.

 

 

3A/ASIAN AFFAIRS

I)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED UP 12.79 POINTS OR 0.44%  //Hang Sang CLOSED UP 39.82 POINTS OR 0.14%   /The Nikkei closed UP 42.37 POINTS OR 0.20%//Australia’s all ordinaires CLOSED DOWN .25%

/Chinese yuan (ONSHORE) closed DOWN  at 6.8811 /Oil UP TO 60.31 dollars per barrel for WTI and 66.70 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 6.8811 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 6.8813 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

Truce ends:  China to sanction American defense contractors who sell arms to Taiwan

(courtesy zerohedge)

China To Sanction American Defense Contractors Who Sell Arms To Taiwan

When it comes to tail risks that could cause WWIII, simmering tensions around Taiwan and Beijing’s increasingly belligerent rhetoric probably rank as one of the most probable. Since at least the beginning of the year, President Xi has warned that ‘reunification’ between Taiwan and the mainland is inevitable, and hinted that Beijing wouldn’t hesitate to attack any foreign power that tries to stop China. In response, Taiwan’s President Tsai Ing-wen has insisted that the people of Taiwan would ‘never’ tolerate rule by the Communist Party, and insisted that the island’s military would fight.

In the middle of this, Washington has okayed the sale of $2.2 billion in weapons, including missiles and tanks, to Taiwan. The decision outraged Beijing, which accused Washington of interfering in its relations with its wayward province.

Now, Beijing is moving ahead with an unprecedented provocation: China’s Foreign Ministry Spokesman Geng Shuang said in a statement that Beijing intends to impose sanctions on American companies selling arms to Taiwan.

That list likely includes most of the major American defense contractors, particularly General Dynamics, the maker of the Abrams tank, and Raytheon, maker of the Stinger missile – two of the armaments being purchased by Taiwan.

 

  • CHINA SAYS TO SANCTION U.S. FIRMS INVOLVED IN TAIWAN ARMS SALES
  • U.S. GOVT IN `TOTAL DISREGARD’ OF CHINA, MINSTER WANG YI SAYS
  • WANG YI: U.S. SHOULDN’T HAVE OFFICIAL RELATIONS WITH TAIWAN

The announce comes as Chinese Foreign Minister Wang Yi warned during a trip to Hungary on Friday that Washington must end its dealings with Taiwan, saying that continuing would be like “playing with fire.”

Wang

Wang Yi

He added that no foreign power will be able to prevent China’s reunification with its runaway province. Though the US has vowed to protect Taiwan should the mainland try to invade. Wang added that the US government is in ‘total disregard’ of China.

And just like that, the prospects for moving from trade war to military confrontation with Beijing have climbed considerably.

END

4/EUROPEAN AFFAIRS

UK

Boris Johnson  (BoJo) is to become the next UK Prime Minister and now he is set to bring the UK out of the terrible EU deal it was dealt many years ago

(courtesy zerohedge)

Boris Johnson Has Already Won The UK PM Election With 12 Days Remaining To Vote

Authored by Mike Shedlock via MishTalk,

Johnson is headed for a landslide victory based on votes already cast. Hunt can’t win even if he gets 100% of the rest.

Unlike a general election, held on a single day plus a variable number of postal votes, a conservative party election is entirely postal. The voting period ends July 22.

On the basis of votes already cast, the Conservative Home Page says “Johnson has Won Already“.

Today, our survey shows Johnson on 72 per cent and Hunt on 28 per cent. We have varied the standard question and added one to ask whether or not respondents have already voted. Seventy-one per cent of respondents say that they have done so

If the survey is accurate, it would be reasonable to assume, on the evidence available at the moment, that Johnson will win somewhere between 67 per cent and 72 per cent of the vote.

And if the survey is correct, Johnson has won this contest already. Even if the entire 28 per cent of those who haven’t voted yet opt for Hunt, he cannot catch the front-runner.

In conclusion, our surveys and YouGov’s poll last weekend are all singing the same song. Johnson has won.

The 67-72% prediction takes into consideration a You-Gov poll last week that had Johnson at 67% and Hunt at 29%.

Newly Registered Voters

YouGov

@YouGov

That being said, the voting records of these newly-joined members are still strongly Conservative: 92% voted Tory in 2017, as did 71% in 2015. Only 2% did at the EU elections (but then so did only 22% of all members) https://yougov.co.uk/topics/politics/articles-reports/2019/07/11/does-conservative-party-have-problem-entryism?utm_source=twitter&utm_medium=website_article&utm_campaign=chris_curtis_tory_entryism 

View image on Twitter

YouGov

@YouGov

These newly-joined members are more pro-Boris.: 85% say they will vote for him. But given the membership as a whole backs Boris over Hunt by 74% to 26%, all these new members are doing is shifting the dial, not changing the resulthttps://yougov.co.uk/topics/politics/articles-reports/2019/07/11/does-conservative-party-have-problem-entryism?utm_source=twitter&utm_medium=website_article&utm_campaign=chris_curtis_tory_entryism 

View image on Twitter

Deliver Brexit or Else

YouGov

@YouGov

By 48% to 24% Brits say Boris Johnson should resign if he fails to deliver Brexit by 31 October (providing he is in power in the first place). Conservative voters are split (38% to 39%) https://yougov.co.uk/opi/surveys/results?utm_source=twitter&utm_medium=daily_questions&utm_campaign=question_2#/survey/91df19e3-a2f7-11e9-9a56-0b5cb68d6164/question/ad353dc5-a2f7-11e9-8c8b-4531b95c0f5a/politics 

Congratulations!

Congratulations to Boris Johnson, the next UK PM.

He will deliver Brexit one way or another.

END

Deutsche  Bank

ARCADIA ECONOMICS

Will Deutsche bank crash the markets..you betcha

a must view

(courtesy Dave Kranzler/Chris Marcus)

Will Deutsche Bank Crash The Markets – With Dave Kranzler

July 10, 2019

Deutsche Bank had a big restructure over the weekend. Leaving many concerned that a potential failure could be the spark to crash the markets.

Given their massive derivative position, a Deutsche Bank failure could also potentially be the break point in the precious metals manipulation.

Which means we were fortunate to have Dave Kranzler of Investment Research Dynamics join me on the show to discuss what’s happening, how it’s likely to play out, and how he’s positioning the investors in his fund.

Dave also commented on which type of mining stocks investors might want to own in that environment. And whether silver is one of the most undervalued assets he’s ever seen in his career.

So to find out what’s going on, click to watch the video now!

Chris Marcus

Chris Marcus

July 10, 2019

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Israel/Iran.

Israel’s Mossad passed information to the IAEA of radioactivity in a facility that the Iran’s claim is a carpet factory.  If so this is a huge violation of the Iranian deal and this could lead the European faction to also pull out of the deal

(zerohedge)

Mossad Led Inspectors To Iran-made “Radioactive Material” At Disputed Site

According to a breaking Axios and Israeli Channel 13 report the International Atomic Energy Agency (IAEA) has uncovered damning evidence of radioactive material at an Iranian nuclear site. The site at Turquzaba, Iran — which had previously been subject of a prop-laden Netanyahu presentation before the UN in September 2018 — “was used to store nuclear equipment and material” alleges Israel; however, Iran has long asserted the warehouse was nothing but a carpet factory. 

It appears Israeli’s elite intelligence agency Mossad was behind passing the initial information regarding Iranian efforts to “hide evidence” on to the IAEA and UN inspectors. Prime Minister Netanyahu had previously accused Iran of covering its tracks, allegedly removing 15 kilograms of undeclared enriched uranium from the facility a mere month prior to his UN speech.

 

The Israeli PM’s September 2018 UN speech, via Reuters

According to Israeli reporter Barak Ravid, who broke the story of Israeli intelligence tipping off international inspectors, the IAEA is still sitting on the information and is in the process of prepping a report for UN member states. He reports the following in Axios:

 

  • Israel passed information about the warehouse to the IAEA, and UN inspectors visited the site several months ago, Israeli officials tell me. Their last visit was in March.
  • IAEA inspectors took soil samples to try and find evidence of radioactivity. The IAEA has since been analyzing the results and preparing a report.
  • The tests came back positive, according to the Israeli officials, and in the last few weeks it became clear that the remains of radioactive material were found at the site. The officials say that indicates Iran was storing undeclared nuclear equipment or materials.

If accurate, this would be a serious breach of the 2015 JCPOA, which both Washington and Tel Aviv have long claimed Iran was already in breach of prior to Trump’s unilateral US pullout from the nuclear deal in May 2018. Israeli officials described it as a “game changer”.

Israeli officials leaking this information is an attempt to prove a severe violation; however, confirmation will only be determined if and when a final IAEA report does come out, yet no date has been given.

The Jerusalem Post reports that “top Israeli sources revealed that the IAEA is sitting on the information and has avoided making it public to date.”

Between the time Mossad supposedly uncovered evidence of radioactive material at the site and IAEA inspectors actually arriving, there was concern that any and all on-site evidence would be wiped. But The Jerusalem Post report notes “there have been instances in the past where the Islamic republic’s cleaning crew was not careful enough and left behind traces which inspectors picked up on.” Apparently that scenario happened in this case.

Meanwhile, Netanyahu has continued to press the White House on keeping its “maximum pressure” campaign against Tehran alive, with Netanyahu holding his second phone call with President Trump of the past week on Wednesday.

END
IRAN/USA
The USA is contemplating using the “snapback” provision in the 2015 Iran nuclear deal to bring back the tough sanctions against Iran for violating the uranium enrichment program.  The USA would need either England and France to initiate the proceedings.With England set to leave the EU under a no deal Brexit, England will now do doubt back the USA
(courtesy zerohedge)

Washington Weighing ‘Snapback’ Of UN Sanctions On Iran

Washington is about to squander whatever goodwill it gleaned from the series of mysterious tanker attacks that it blamed on Iran by leveraging its veto power at the UN Security Council to impose special ‘snapback’ sanctions on Tehran.

In the latest sign that the Trump Administration is planning to redouble its pressure campaign against the Islamic Republic in response to Tehran’s uranium enrichmentBloomberg reports that senior US officials are debating whether to impose the ‘snapback’ sanctions – which would further elevate tensions between Washington and Tehran – in response to Iran’s breach of thresholds for the size of its uranium stockpile and the level of enrichment.

Tehra

Though the US formally withdrew from the treaty last year, officials believe Washington could still invoke the mechanism, which would ultimately trigger a return to UN Security Council sanctions beyond those the US is already imposing unilaterally.

A return to the sanctions straightjacket that first drove Tehran to the negotiating table would destroy whatever is left of the European signatories’ effort to salvage the deal. It would also seriously piss off the other signatories, particularly since the US has already quit the deal, and therefore shouldn’t have a say.

But ultimately, even Obama era officials agree that there’s “an argument to be made” for triggering the snapback sanctions.

“Do I think there’s an argument to be made for snapping back? Sure,” said Richard Nephew, who was the lead sanctions expert for the Obama administration team that negotiated the 2015 accord. “Do I think the rest of the council agrees? No. It’s not clear people would stay in their chairs during discussions if we invoked this.”

Nephew, now a senior research scholar at Columbia University, said the snapback was designed to give the U.S. unilateral privileges to restore sanctions through the Security Council. At the time, the provision was a major part of Secretary of State John Kerry’s pitch for Congress to acquiesce to the deal. It’s also something that an “America First” president like Trump would like.

Here’s how the US would pull it off: the whole process would take two months, and it may require the help of France or the UK, both of whom are trying to save the deal, but still might acquiesce as they worry that Tehran has failed to restrain itself.

Under the snapback clause, any of the signatories to the Iran accord can cite Iran for violating the accord in a complaint to a dispute resolution committee.The matter eventually could be brought before the Security Council, which could vote on a resolution to keep the previous sanctions from going back into force. But the U.S. could get its way by exercising its veto on the council.

It’s no easy fix: The process could take two months or longer. And in today’s circumstances, other participants in the deal would be likely to argue that the U.S. is no longer allowed to invoke the mechanism.

To get around a dispute over whether the U.S. has standing to initiate the snapback mechanism, American officials are leaning on France and the U.K. to consider exercising it. The Europeans are signaling they’re not at that point yet, but they are using the American threats to put pressure on Iran to restrain itself, according to Western diplomats at the UN.

Many of the signatories are still angry with the US for leaving and trashing the deal, and have criticized for aggravating tensions in the region.

A meeting in Vienna on Wednesday foreshadowed just how explosive any efforts for a snapback would be. The U.S. sought a special meeting of nuclear inspectors to increase pressure against Iran. Instead, the Americans drew pushback from Russia, China and Europe, all of whom blame the Trump administration for the crisis.

France, Germany and the U.K. issued a joint statement on the eve of the meeting saying that while they were concerned by Iran’s violations, it’s the job of the remaining participants in the deal, known as the Joint Comprehensive Plan of Action, to address disputes.

“The EU deeply regrets the U.S. withdrawal and calls on all countries to refrain from taking any actions that impede the implementation of the JCPOA commitments,” it said.

To be sure, US sanctions have done considerable damage to the Iranian economy, and it’s unclear whether the UN sanctions would add a significant amount of pressure. But the fact that this is being seriously considered shows that the Iran hawks are working to regain control of the agenda, despite President Trump’s insistence that he doesn’t “want a war” with Iran.

END

IRAN

Iran is ramping up uranium enrichment in underground nuclear bunkers built underground to protect it from bombs.

(courtesy Ross Ibbetson/Mailonline)

and special thanks to G for sending this to us.

Iran ‘is ramping up uranium enrichment in underground nuclear bunker built under a mountain to protect it from bombs’

  • Fordow nuclear facility is a fortified lair buried deep inside a rural mountain range 80 miles south of Tehran
  • Surrounded by steel fencing, guard towers and S-300 anti-air missiles, massive tunnels lead to its dark heart
  • Built in 2002 for nuclear armament, Tehran said it would be re-purposed under the 2015 Iran Deal
  • But a bombshell report has revealed it could rapidly revert to its original function as the Iran Deal crumbles

By ROSS IBBETSON FOR MAILONLINE

Iran is building a sprawling nuclear facility beneath a mountain to protect it from bombardment and prying eyes, experts have claimed.

The Fordow nuclear enrichment facility, located around 80 miles south of Tehran, was never re-purposed as was promised in the 2015 Joint Comprehensive Plan of Action (JCPOA).

Iranian nuclear scientists can rapidly produce weapons-grade levels of nuclear enrichment within the deep underground corridors of the facility, a leading think tank said on Wednesday.

The plant is buried in a mountain range, originally under the command of the Islamic Revolutionary Guard, it is heavily fortified by a ring of steel fencing with guard towers every 80ft.

Russian-made S-300 missile systems were installed three years ago and it has become a hot-spot of activity as satellite imagery reveals intensifying construction, according to the Institute for Science and International Security.

The U.S. Air Force has B-2 stealth bombers armed with the 33,000lb ‘bunker buster,’ but experts fear the plant could be indestructible.

Fordow nuclear enrichment facility, located around 80 miles south of Tehran, surrounded by a double-ring of steel, guard towers and Russian-made S-300 missile systems

Fordow nuclear enrichment facility, located around 80 miles south of Tehran, surrounded by a double-ring of steel, guard towers and Russian-made S-300 missile systems

The facility is surrounded by a ring of steel and guard towers which cut through the rugged terrain - towards the top of the image a road can be seen leading inside which branches off, one route heading to a building with a white roof and another to the underground bunker

The facility is surrounded by a ring of steel and guard towers which cut through the rugged terrain – towards the top of the image a road can be seen leading inside which branches off, one route heading to a building with a white roof and another to the underground bunker

A zoomed in map showing the entrance through the perimeter fence to the top left and further tunnel entrances positioned in the top right section of the mountain range

A zoomed in map showing the entrance through the perimeter fence to the top left and further tunnel entrances positioned in the top right section of the mountain range

Tunnels are used to access the lair which is packed with more than 1,000 centrifuges used in nuclear production.

The Institute for Science and International Security, founded by former UN nuclear inspector David Albright, say: ‘Everything required to enrich uranium to weapons grade could be quickly reconstituted in the underground portion of the facility.

‘Fordow is potentially part of Iran’s current threats to progressively go to higher enrichment levels and increase its stocks of enriched uranium, and if conducted there, Fordow’s underground tunnel complex is fortified to withstand aerial bombardment.’

 

It was built in 2002 under the ‘Amad Plan’ – Iran’s nuclear weapons program – but its discovery by Western intelligence forced Tehran to convert it to a power plant in 2009.

And in 2016, the JCPOA decreed that it be converted into a ‘nuclear, physics and technology centre,’ but it is now a key asset in what the Trump administration calls ‘nuclear extortion.’

Tunnels are used to access the heart of the facility which is packed with over 1,000 centrifuges used for nuclear production

Tunnels are used to access the heart of the facility which is packed with over 1,000 centrifuges used for nuclear production

Satellite images show two tunnels forking off the highway and deep into the mountain range in the rural desert landscape of Iran

Satellite images show two tunnels forking off the highway and deep into the mountain range in the rural desert landscape of Iran

According to the Institute for Science and International Security there are some ancillary service buildings dotted around the surface, but the real heart of the project is buried in an underground facility

According to the Institute for Science and International Security there are some ancillary service buildings dotted around the surface, but the real heart of the project is buried in an underground facility

The U.S. President has lashed the renegade state with sanctions over alleged breaches to the JCPOA and Iran has responded with attacks on oil tankers in the Strait of Hormuz and shooting down a U.S drone.

Trump has called the Obama-era JCPOA ‘the worst deal in history,’ and according to the Institute for Science and International Security, ‘there is little reason to believe that Iran ever intended any meaningful conversion of the Fordow tunnel complex.’

Iran announced last week that it had exceeded the amount of low-enriched uranium it is allowed to stockpile under limitations set in the 2015 nuclear deal.

EU urges Iran to reverse uranium enrichment and uphold nuclear deal

The facility is also guarded from air attacks by Russian-made S-300 missile systems (pictured: a Russian S-300 air defence system launches a missile during military exercises at the Ashuluk shooting range in Russia)

The facility is also guarded from air attacks by Russian-made S-300 missile systems (pictured: a Russian S-300 air defence system launches a missile during military exercises at the Ashuluk shooting range in Russia)

President Hassan Rouhani

President Donald Trump

President Donald Trump (right) has slapped heavy sanctions on Iran after it says Tehran breached the 2015 JCPOA, President Hassan Rouhani has engaged in heated rhetoric with Trump after attacks on tankers and a US drone

Rouhani says Britain face ‘consequences’ for seizing Iranian tanker

IRAN/UK

An oil tanker is waiting for a 2nd warship which will accompany the ship through the Strait of Hormuz

(zerohedge)

“Dangerous Game”: UK Deploying 2nd Warship To Protect Tankers In Gulf

Amid ongoing “tanker wars” following the UK’s unprecedented and aggressive seizure of a super tanker transporting Iranian oil to Syria last week, which led to an alleged thwarted counter-attempt of Iran’s IRGC to block a UK-flagged tanker in the Persian Gulf Wednesday, Britain says it plans to send a second warship to the region.

Currently the HMS Montrose is shadowing the BP-owned British Heritage tanker after it was approached by IRGC boats — this as Britain raised its threat level to British shipping in the gulf area to its highest. Per government statements, the HMS Duncan, a type 45 Destroyer, will be deployed alongside the HMS Montrose in the region for a short period.

“We are concerned by this action and continue to urge the Iranian authorities to de-escalate the situation in the region,” a Downing Street spokesman had said Wednesday of the dangerous encounter with Iran’s military in the gulf earlier that day.

 

HMS Duncan in the foreground, via UK Defence Journal

And on Thursday a separate UK official stated: “As part of our long-standing presence in the Gulf, HMS Duncan is deploying to the region to ensure we maintain a continuous maritime security presence while HMS Montrose comes off task for pre-planned maintenance and crew changeover,” according to the BBC.

“This will ensure that the UK, alongside international partners, can continue to support freedom of navigation for vessels transiting through this vital shipping lane.” At the moment the HMS Duncan is in Mediterranean waters.

The Pentagon also this week described plans to work with allies to provide military escorts to ships traversing waters near Iran, as concerns grow that any major incident would threaten global oil supplies, which would no doubt send prices soaring.

Already other international ships are reportedly waiting for military escorts prior to entering the Strait of Hormuz, as Bloomberg describes in a breaking report:

VLCC Atlantic Pioneer, an Isle of Man-flagged tanker, sailed near Ras Tanura port in Saudi Arabia, turned away without loading any cargo and is now headed toward the Strait of Hormuz, Bloomberg ship-tracking data shows.

The vessel is expected to wait for an escort from British naval ship HMS Montrose before sailing through the waterway, data intelligence firm Kpler SAS says in note released Friday.

Meanwhile Iran has continued to point the finger at Washington for the soaring tensions and growing “tanker war” after accusing the UK of detaining its some 1 million barrels of oil aboard a Panamanian-flagged vessel “at the behest of” the US government “in line with America’s hostile policies”.

Foreign ministry spokesman Abbas Mousavi said: “This is a dangerous game and we advise them not get involved in this game under America’s influence.”

“We ask them again to release the tanker immediately, which will be in all countries’ interest,” he added.

end
Turkey/USA
The USA is now set to respond as the S 400s arrive
(zerohedge)

US Prepares Response As Video Confirms Russian S-400 Delivery To Turkey

Turkey has confirmed delivery of the first round of S-400 anti-air missile systems components. The first batch reportedly arrived at an airbase near Ankara, which was caught on video.

A NATO official told CNN on Friday: “It is up to allies to decide what military equipment they buy. However, we are concerned about the potential consequences of Turkey’s decision to acquire the S-400 system.” Those consequences are shaking the alliance given Turkish media is already reporting a punitive response from Washington is imminent:

U.S. sources tell Ahval, there will be a response by the U.S. government with regards to the arrival of S-400 Russian defense systems in Turkey, soon.

Embedded video

DAILY SABAH

@DailySabah

Defense Ministry releases close-up footage of Russian S-400 missile system parts being unloaded from cargo planes upon arrival to be re-assembled in Turkeyhttp://sabahdai.ly/p4bulx

Russia’s TASS news has indicated a second delivery will be made in the coming weeks, with a third delivery, carrying over “120 anti-aircraft missiles of various types” to be delivered “tentatively at the end of the summer, by sea.”

TASS also noted that Turkish S-400 operators will receive training on the systems in Russia, following a prior training program involving 20 Turkish personnel last Spring.

 

Russian AN-124 cargo plane landed in Ankara on Friday carrying parts of the S-400 system. Via CNN/Getty

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.

Embedded video

Babak Taghvaee@BabakTaghvaee

: media (‘s Anadolu Agency) released video of the first S-400 SAM battery of which were delivered by two Air Force’s An-124-100 transport airplanes, RA-82038 and RA-82013 from 224th Flight Unit at AB, few hours ago.

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.”

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.

And while the Turkish Lira has been on a stronger path for much of the past month, surprising many, today it finally appeared to get a moment of realization that the US is unlikely to let this provocation without a response, and the result has been a sharp spike in the USDTRY.

On the other hand, with Erdogan now de facto central bank chief, it is only a matter of time before the pair trades back to whatever level the Turkish president deems satisfactory, even if it means the vaporization of Turkish FX reserves and the eventual collapse of the country’s economy.

end

6. GLOBAL ISSUES

As I promised you there is no such thing as made made climate change: It just does not exist\Finish research proves the fact.

(courtesy zerohedge)

Bombshell Claim: Scientists Find “Man-made Climate Change Doesn’t Exist In Practice”

A new scientific study could bust wide open deeply flawed fundamental assumptions underlying controversial climate legislation and initiatives such as the Green New Deal, namely, the degree to which ‘climate change’ is driven by natural phenomena vs. man-made issues measured as carbon footprint. Scientists in Finland found “practically no anthropogenic [man-made] climate change” after a series of studies. 

“During the last hundred years the temperature increased about 0.1°C because of carbon dioxide. The human contribution was about 0.01°C”, the Finnish researchers bluntly state in one among a series of papers.

This has been collaborated by a team at Kobe University in Japan, which has furthered the Finnish researchers’ theory: “New evidence suggests that high-energy particles from space known as galactic cosmic rays affect the Earth’s climate by increasing cloud cover, causing an ‘umbrella effect’,” the just published study has found, a summary of which has been released in the journal Science Daily. The findings are hugely significant given this ‘umbrella effect’ — an entirely natural occurrence  could be the prime driver of climate warming, and not man-made factors.

 

Clouds over Los Angeles, via AFP/Getty 

The scientists involved in the study are most concerned with the fact that current climate models driving the political side of debate, most notably the Intergovernmental Panel on Climate Change’s (IPCC) climate sensitivity scale, fail to incorporate this crucial and potentially central variable of increased cloud cover.

“The Intergovernmental Panel on Climate Change (IPCC) has discussed the impact of cloud cover on climate in their evaluations, but this phenomenon has never been considered in climate predictions due to the insufficient physical understanding of it,” comments Professor Hyodo in Science Daily. “This study provides an opportunity to rethink the impact of clouds on climate. When galactic cosmic rays increase, so do low clouds, and when cosmic rays decrease clouds do as well, so climate warming may be caused by an opposite-umbrella effect.”

In their related paper, aptly titled, “No experimental evidence for the significant anthropogenic [man-made] climate change”, the Finnish scientists find that low cloud cover “practically” controls global temperatures but that “only a small part” of the increased carbon dioxide concentration is anthropogenic, or caused by human activity.

The following is a key bombshell section in one of the studies conducted by Finland’s Turku University team:

We have proven that the GCM-models used in IPCC report AR5 cannot compute correctly the natural component included in the observed global temperature. The reason is that the models fail to derive the influences of low cloud cover fraction on the global temperature. A too small natural component results in a too large portion for the contribution of the greenhouse gases like carbon dioxide. That is why 6 J. KAUPPINEN AND P. MALMI IPCC represents the climate sensitivity more than one order of magnitude larger than our sensitivity 0.24°C. Because the anthropogenic portion in the increased CO2 is less than 10 %, we have practically no anthropogenic climate change. The low clouds control mainly the global temperature.

This raises urgent questions and central contradictions regarding current models which politicians and environmental groups across the globe are using to push radical economic changes on their countries’ populations.

 

Image source: NASA

Conclusions from both the Japanese and Finnish studies strongly suggest, for example, that Rep. Alexandria Ocasio-Cortez’s “drastic measures to cut carbon emissions” which would ultimately require radical legislation changes to“remake the U.S. economy” would not only potentially bankrupt everyone but simply wouldn’t even work, at least according to the new Finnish research team findings.

To put AOC’s “drastic measures” in perspective  based entirely on the fundamental assumption of the monumental and disastrous impact of human activity on the climate  — consider the following conclusions from the Finnish studies:

“During the last hundred years the temperature increased about 0.1°C because of carbon dioxide. The human contribution was about 0.01°C.

Which leads the scientists to state further:

“Because the anthropogenic portion in the increased carbon dioxide is less than 10 percent, we have practically no anthropogenic climate change,” the researchers concluded.

And the team in Japan has called for a total reevaluation of current climate models, which remain dangerously flawed for dismissing a crucial variable:

This study provides an opportunity to rethink the impact of clouds on climate. When galactic cosmic rays increase, so do low clouds, and when cosmic rays decrease clouds do as well, so climate warming may be caused by an opposite-umbrella effect. The umbrella effect caused by galactic cosmic rays is important when thinking about current global warming as well as the warm period of the medieval era.

Failure to account for this results in the following, according to the one in the series of studies: “The IPCC climate sensitivity is about one order of magnitude too high, because a strong negative feedback of the clouds is missing in climate models.”

 

Image source: AFP/Getty 

“If we pay attention to the fact that only a small part of the increased CO2 concentration is anthropogenic, we have to recognize that the anthropogenic climate change does not exist in practice,” the researchers conclude.

Though we doubt the ideologues currently pushing to radically remake the American economy through what ends up being a $93 trillion proposal (according to one study including AOC’s call for a whopping 70% top tax rate — will carefully inquire of this new bombshell scientific confirmation presented in the new research, we at least hope the US scientific community takes heed before it’s too late in the cause of accurate and authentic science that would stave off irreparable economic disaster that would no doubt ripple across the globe, adding to both human and environmental misery.

And “too late” that is, not for some mythical imminent or near-future “global warming Armageddon” as the currently in vogue highly politicized “science” of activists and congress members alike claims.

 end
SINGAPORE
This is very telling: export juggernaut Singapore reports that its economy unexpectedly tumbles.  This is a huge Bellwether as to global growth.  Chinese exports also slide big time  (see above)
(zerohedge)

“I Thought The Numbers Would Be Bad, But This Is Ugly” – Singapore Economy Unexpectedly Tumbles; Chinese Exports Slide

The latest confirmation that global trade is suffering its gloomiest period since the financial crisis, if not outright depressionary as we pointed out two months ago

… came overnight from Asia, where first global trade hub Singapore delivered some shockingly bad news about the state of its economy, followed shortly by the latest disappointing Chinese exports report.

The first warning shot to the global economy came from Singapore, where Gross domestic product in the trade-reliant city state declined an annualized 3.4% in the second quarter, a plunge from 3.8% in Q1 and far below the 0.5% consensus estimate. This was the biggest drop since 2012.

“I thought the numbers would be bad, but this is ugly,” said Chua Hak Bin, an economist at Maybank Kim Eng Research Pte in Singapore. “The whiff of a technical recession is real. We thought it might be shallow, but the risks now is that it might be deeper.”

Singapore, which is one of the world’s most reliable trade proxies and due to its heavy reliance on commerce and its complicated integration in regional and global supply chains makes it vulnerable to a slowdown in world growth and tariff wars. Exports have already taken a big hit over the past few months, with shipments plunging in May by the most since early 2013; the latest report revealed that the plunge in GDP was largely due to a collapse in electronics shipments.

Manufacturing contracted an annualized 6% in the second quarter from the previous three months. Construction declined 7.6%, reversing a 13.3% expansion in the first quarter. The services industry shrank 1.5% in the second quarter.

“Singapore is the canary in the coal mine, being very open and sensitive to trade,” said Chua Hak Bin, an economist at Maybank Kim Eng Research Pte in Singapore. The data “points to the risk of a deepening slowdown for the rest of Asia.”

Despite the dismal numbers, the local government is still hopeful about the future, and sees the economy expanding 1.5%-2.5% this year, compared with 3.1% in 2018. Officials are set to revise that projection in August, Minister for Trade & Industry Chan Chun Sing told Parliament this week, adding that Singapore was “well-placed to weather the storm” given its sound economic fundamentals, strong fiscal position, and progress in restructuring the economy. Singapore isn’t expecting a full-year recession yet but the government is “monitoring the situation closely,” Finance Minister Heng Swee Keat said in a Facebook post.

Others are far more skeptical: “As weak as Singapore’s standstill in 2Q GDP was, 2H will probably be much worse without a rapprochement in U.S.-China trade relations. Our forecast for a 0.2% year-on-year contraction in 2019 remains on course” said Bloomberg economist Tamara Henderson.

* * *

Separately, in the second blow to global trade – and the latest confirmation that China will be forced to engage in even more aggressive stimulus – Beijing’s latest trade figures showed exports fell 1.3% in June from a year ago and imports shrank a more-than-expected 7.3%.

Exports were in line with consensus expectations, with imports slightly weaker. In sequential terms, exports were down by 1.0% mom sa non-annualized in June, partly reversing a gain of 2.2% in May which was boosted by the frontloading from exporters. Imports remained weak, down by 0.6% mom sa non-annualized in June, albeit to a lesser extent (-6.1% non-annualized in May). China’s trade surplus increased to US$50.4bn in June from US$41.7bn in May.

The main culprit for the latest disappointing data? Exports to the US contracted significantly by 7.8% yoy in June, down further from -4.1% yoy in May. Exports to the EU also decelerated to a decline of 3% yoy in June from +6.1% yoy in May, and exports to Japan increased modestly by 2.4% yoy (v.s. +0.5% yoy in May). In contrast, exports to ASEAN accelerated significantly to +12.9% yoy in June from +3.5% yoy in May.

Meanwhile, on the other side, imports of crude oil accelerated in June, while imports of steel products remained weak. Imports of iron ore continued to decline in volume terms, though increasing in value terms on higher prices. In value terms, crude oil imports accelerated to +8.2% yoy in June (vs. +5.5% yoy in May); steel products imports declined by 19.5% yoy in June (vs. -22.5% yoy in May); iron ore imports increased +34.6% yoy in June (vs. +24.0% yoy in May). In volume terms, crude oil imports were up by 15.2% yoy in June (vs. +3.0% yoy in May); steel products imports remained weak at 9.1% yoy in June (vs. -13.4% yoy in May); iron ore imports decreased by 9.7% yoy in June (vs. -11.0% yoy in May).

According to Goldman, “weaker global demand, higher tariffs from the US and smaller impacts from the frontloading (compared to May) may have contributed to the slowdown in exports momentum in June, though depreciation in RMB over the past several months may have been supportive.” As a result Goldman believes that exports momentum may remain modest in coming months, given moderate global economic growth, and combined with weak private demand, will result in easier domestic policy to maintain growth stability. The latest State Council meeting also announced measures to support exports (e.g., improving export tax rebate policies and lowering export insurance fees). And since China’s trade surplus jumped, if for all the wrong reasons (drop in exports, bigger drop in imports), expect a furious Trump to opine negatively any moment, putting a China deal further out of reach.

END

DHL

Another solid Bellwether: DHL sounds the alarm bell on collapsing world trade and reports that a significant downturn is now underway

(courtesy zerohedge)

DHL Sounds Alarm On Collapsing World Trade: “Significant Downturn” Underway 

A new quarterly report from logistics company DHL, measured global air and sea cargo trade volumes between March and June, found trade data continues to deteriorate in the US and China as there is still no resolution to end the trade war, reported South China Morning Post (SCMP).

Chinese imports were “losing significant momentum,” the report stated, indicating the epicenter of the slowdown was situated in basic raw materials, capital equipment and machinery, and consumer fashion goods. The loss of momentum in DHL trade data has also been confirmed in official Chinese import data releases.

The report indicated that the US trade outlook is more dangerous than China: DHL expected a “significant downturn, driven by heavy losses in exports outlook.” DHL said both air and sea freight have plunged into negative territory in 2Q19, with extreme weakness in basic raw materials, chemicals, and technology.

“The declining outlook for US exports indicates that, so far, the US is missing its goal of strengthening its export economy with a harsher trade course against China,” DHL said.

DHL’s Global Trade Barometer measured air and sea container freight for seven countries, which together accounted for more than 75% of world trade

The report focused on early-cycle commodities to detect turning points in global trade flows — goods such as automobile bumpers, touch screens for smartphones, and brand labels for clothes.

If shipments of early-cycle commodities edged down, DHL was able to forecast lower demand finished goods.

“The data is expressed as a figure, with a reading above 50 indicating a positive outlook over the three month period, and below 50 a negative. For the US, air trade fell from 53 in March to 45 in June, while sea trade fell from 57 to 43. In the case of China, air trade fell from 57 to 51 over the same period, while sea trade fell from 55 to 47,” said SCMP.

During the observed period, there was a tremendous escalation of the trade war when President Trump raised tariffs on $200 billion of Chinese goods from 10% to 25%, while China retaliated with 25% tariffs on $60 billion of US goods.

A synchronized decline in global trade has also sent JPMorgan’s Global Manufacturing PMI to its lowest level for over six-and-a-half yearsand posted back-to-back sub-50.0 readings for the first time since the second half of 2012.

So, like the two other times, when macro matters again global stocks will crash.

END
SWEDEN
By goodness!! The entire world associates Sweden with Volvo. The executives now want to leave due to rise in violent crime brought on by the huge influx of migrants.   Nobody wants to come to the next largest city in Sweden Gothenburg due to the crime wave.
(Paul Watson/.Summit News)

Volvo CEO Says Company May Leave Sweden Partly Due To Rise in Violent Crime

Authored by Paul Joseph Watson via Summit News

The CEO of Volvo warns that the company is considering moving its headquarters out of Sweden in the future, partly due to a rise in violent crime.

Håkan Samuelsson told a conference that the car maker was losing its appeal to foreign experts and engineers and further explained his concerns during an interview with SVD Näringsliv.

“We are building cars, we cannot solve the other problems, someone else must do that,” the CEO said, adding that it is becoming more difficult to attract workers due to Sweden’s worsening reputation.

“It’s definitely not helping when people read about shootings in Gothenburg and wonder if they really dare to move to Gothenburg,” said Samuelsson.

If the situation does not improve, the CEO warned that the company may even have to consider leaving Sweden in the future.

“Often people believe that decisions like these are taken by senior management or in China. But the fact is that we will only place our headquarters in a country where things work. At the moment, we are not close to such a discussion. But yes, it is something that might happen in the future,” said Samuelsson.

However, Chief of Police in Gothenburg County Erik Nord denied there was a problem, accusing Samuelsson of getting misinformation from social media.

As we have previously highlighted, surveys show that migrants are vastly overrepresented in violent crime and rapes in Sweden, but the government stopped gathering official statistics back in 2005.

This was long before the problem was exacerbated by the arrival of over 150,000 new “refugees” mainly from Islamic countries from 2015 onwards.

Swedish author Björn Ranelid recently warned that the level of crime and violence the previously sedate country is experiencing amounts to a “small scale war”.

 

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END

———————————————————

7. OIL ISSUES

 

 

8 EMERGING MARKET ISSUES

INDIA/USA

After Washington removed trade privileges of a growing nation last month, India was angry and initiated new tariffs on the uSA./ Trump is angry and he might bring on new tariffs against India.

(zerohedge)

US Presses For Rollback Of Indian Tariffs As Trade Tensions Simmer

US trade reps are about to meet with their Indian counterparts on Friday for the first time just days after President Trump hinted that he might open up a new front in the trade war by calling India’s tariffs “unacceptable.”

According to Reuters, a delegation led by Christopher Wilson, assistant US trade representative for South and Central Asia, will meet Indian officials to try to re-start negotiations on the tariffs, which were imposed in retaliation for Washington removing some trade privilegesfrom Indian products not long after Narendra Modi, India’s prime minister, secured his re-election.

India

The agenda for the talks looks something like this: The US will seek a rollback of some of those tariffs, and India will, in return, seek better access to the US market for Indian farm products, according to an Indian official.

It’s unlikely that India will immediately commit to any changes to foreign investment rules for foreign e-commerce firms such as Walmart’s Flipkart and Amazon, a major goal for the American side.

India’s strict rules have forced both companies to rework their business strategies for serving the world’s most populous market.

Back in January, Walmart told the Trump Administration that India’s new investment rules for e-commerce could potentially hurt the bilateral trading relationship because of their regressive nature.

Meanwhile, tensions with Pakistan remain elevated. Despite pleas from India’s government to reopen its airspace, which it closed in February following one of the most intense diplomatic crises in recent memory, Pakistan has refused, saying it won’t reopen its airspace until India withdraws its forward-positioned fighter jets.

END

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

Euro/USA 1.1256 UP .0006 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /GREEN EXCEPT GERMAN DAX

 

 

USA/JAPAN YEN 108.28 DOWN 0.315 (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 1.2530   UP   0.0009  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3035 DOWN .0034 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  FRIDAY morning in Europe, the Euro ROSE BY 6 basis points, trading now ABOVE the important 1.08 level RISING to 1.1256 Last night Shanghai COMPOSITE CLOSED UP 12.79 POINTS OR 0.44% 

 

//Hang Sang CLOSED UP 39.82 POINTS OR 0.14%

/AUSTRALIA CLOSED DOWN 0,25%// EUROPEAN BOURSES ALL GREEN EXCEPT GERMAN DAX

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN EXCEPT GERMAN DAX 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 39.62 POINTS OR 0.14%

 

 

/SHANGHAI CLOSED UP 12,79 POINTS OR 0.44%

 

Australia BOURSE CLOSED DOWN. 25% 

 

 

Nikkei (Japan) CLOSED UP  42.37  POINTS OR 0.20%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1408.70

silver:$15.14-

Early FRIDAY morning USA 10 year bond yield: 2.13% !!! DOWN 1 IN POINTS from THURSDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.65 DOWN 1  IN BASIS POINTS from THURSDAY night.

USA dollar index early FRIDAY morning: 96.99 DOWN 5 CENT(S) from  THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING

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And now your closing FRIDAY NUMBERS \12: 00 PM

Portuguese 10 year bond yield: 0.58% UP 4 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.16%  UP 3   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: 2.15 DOWN 0 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 171 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: RISES TO –.29% IN BASIS POINTS ON THE DAY//

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

 

END

IMPORTANT CURRENCY CLOSES FOR FRIDAY

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

Euro/USA 1.1339  UP     .0043 or 43 basis points

USA/Japan: 107.50 UP .198 OR YEN DOWN 20  basis points/

Great Britain/USA 1.2712 UP .0005 POUND UP 5  BASIS POINTS)

Canadian dollar DOWN 37 basis points to 1.3229

 

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The USA/Yuan,CNY: AT 6.8685    0N SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.8693  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.8254 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.16%

 

Your closing 10 yr US bond yield UP 2 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: 2.58 UP 4 in basis points on the day

Your closing USA dollar index, 96.50 DOWN 13  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 FRIDAY: 12:00 PM

London: CLOSED DOWN 9.71  0.24%

German Dax :  CLOSED DOWN 15.47 POINTS OR .13%

 

Paris Cac CLOSED DOWN 7.24 POINTS 0.13%

Spain IBEX CLOSED UP 18.70 POINTS or 0.20%

Italian MIB: CLOSED UP 27.19 POINTS OR 0.13%

 

 

 

 

 

WTI Oil price; 57.44 12:00  PM  EST

Brent Oil: 65.14 12:00 EST

USA /RUSSIAN /   ROUBLE RISES:    63.28  THE CROSS HIGHER BY 0.41 ROUBLES/DOLLAR (ROUBLE LOWER BY 41 BASIS PTS)

 

TODAY THE GERMAN YIELD RISES  TO –.29 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 :  60.29//

 

 

BRENT :  66.73

USA 10 YR BOND YIELD: … 2.11…

 

 

 

USA 30 YR BOND YIELD: 2.64..

 

 

 

 

EURO/USA 1.1269 ( UP 20   BASIS POINTS)

USA/JAPANESE YEN:107.86 DOWN .737 (YEN UP 74 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 96.82 DOWN 23 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2572 UP 52  POINTS

 

the Turkish lira close: 5.7107

 

 

the Russian rouble 62.96   DOWN 0.16 Roubles against the uSA dollar.( DOWN 16 BASIS POINTS)

Canadian dollar:  1.3035 UP 34 BASIS pts

USA/CHINESE YUAN (CNY) :  6.8808  (ONSHORE)/we need to watch these levels/anything greater than 6.95 will be deadly./

 

USA/CHINESE YUAN(CNH): 6.8803 (OFFSHORE) we need to watch these levels/anything greater than 6.95 will be deadly/

German 10 yr bond yield at 5 pm: ,-0.21%

 

The Dow closed  UP 243.95 POINTS OR 0.90%

 

NASDAQ closed UP 48.10 POINTS OR 0.59%

 


VOLATILITY INDEX:  12.30 CLOSED DOWN .63

LIBOR 3 MONTH DURATION: 2.303%//libor dropping like a stone

 

 

 

 

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

TRADING IN GRAPH FORM FOR THE DAY//

Stocks Surge To Record Highs As Payrolls & Powell Spark Bond Bloodbath

Chinese, European, and US Small caps all lost ground on the week… could be worse though, you could be a bond or bund-holder…

 

Chinese stocks ended the week lower but the losses were all on Monday…

Hang Seng’s China index tumbled into a death-cross…

 

Only Italy managed gains on the week in Europe with Germany’s DAX tumbling…

And while German stocks tumbled, German bunds collapsed (worst yielding spike since June 2017)…

 

Even Small Caps ramped into the green for the week today, but ended red. The Dow and Nasdaq led the week though…

The Dow, Nasdaq, and S&P all closing at the high of the day and at record highs…

Not a meltup…

 

Cyclical stocks melted up today, outperforming defensives that had dominated the week until then…

 

S&P Tech Sector topped 20x Fwd P/E today – its highest since Nov 2007…

 

JNJ tumbled on DoJ criminal probe headlines..

 

For the first time in 7 weeks, the aggregate return from holding the long-bond and the S&P was negative…

Credit and equity protection costs diverged notably the last few days as VIX collapsed to a 12 handle and credit spreads widened…

 

Treasury yields exploded higher this week (except 2Y) and including the Friday spike from payrolls, 30Y is up almost 18bps…

 

With 30Y spiking up to 7-week highs…

 

The yield curve steepened dramatically this week…

 

But we note that each time the 3m10Y curve tried to get back above zero (un-invert), it failed…

 

The dollar is down 3 days in a row to end the week (post-Powell) after surging post-Payrolls…

 

Meanwhile, FX vols have collapsed. USDJPY implied vol is at a record low…

So much for surging economic policy uncertainty

Cryptos were mixed this week with Bitcoin gaining over 5% and the rest of the larger alt-coins losing ground… (but rallying on the day after Trump’s comments)

 

Big gains for commodities this week with oil prices up large and silver very modestly outperforming gold…

 

WTI ended the week back above $60 but hit a wall of resistance at the longer term downtrend…

 

Gold held above $1400 on the week but has gone nowhere for almost a month…

 

Finally, we offer the following from BofA:

“…we anticipate an “overshoot” in credit & equity prices in coming months, followed by an overshoot in gold (US$ devaluation) before big H2 top in asset prices (as bond bubble pops & policy impotence visible).”

And then?

 

end

 

i) Market trading/

 

MARKET TRADING/LATE MORNING

Definitely Not A Fed-Juiced Melt-Up, Nope!

Despite “good” data and Fed’s Evans remarking on how “strong” the economy is, markets are soaring higher (beginning at the cash open) this morning…

Extending the week’s gains post-Powell…

Because the market knows that all the time the Eurodollar and Fed Funds markets are pricing in 25,50,75bps of cuts, Powell is powerless to push back.

 

 

LATE AFTERNOON

 

ii)Market data/

Strong PPI numbers, at 1.7% and this is a forerunner for higher inflation numbers. The big question is;s:  does the Fed care?

(courtesy zerohedge)

Core Producer Prices Print Hotter-Than-Expected – Does The Fed Even Care?

Following a slowdown in headline consumer price growth, headline producer price inflation was expected to slow in June (already at the lowest since Jan 2017) but it printed hotter than expected at +1.7% YoY (vs +1.6% YoY exp).

Under the hood, PPI services jumped as PPI goods dumped:

  • The index for final demand services rose 0.4 percent in June, the largest increase since climbing 0.8 percent in October 2018
  • Prices for final demand goods moved down 0.4 percent in June, the largest decrease since falling 0.6 percent in January.

The China trade war is now creeping into PPI:

“Most of the June advance is attributable to margins for final demand trade services, which moved up 1.3%.”

The indexes for health, beauty, and optical goods retailing; apparel, footwear, and accessories retailing; machinery, equipment, parts, and supplies wholesaling; loan services (partial); and truck transportation of freight also moved higher.

In contrast, prices for traveler accommodation services fell 4.0 percent. The indexes for jewelry retailing and airline passenger services also declined.

But, the big one was a 19.9% surge in corn prices.

However, more worrying for the goldilocks-crowd baying for a Fed rate-cut, is Core PPI printed much hotter than expected (+2.3% YoY vs +2.1% YoY exp) confirming the rebound in consumer price inflation…

Transitory seems to be the only word!!

So will The Fed actually be data-dependent (remember, Powell said the jobs report didn’t change his mind)? or is this rebound in inflation also transitory?

end

iii)USA ECONOMIC/GENERAL STORIES

Welcome to Chicago!!

(zerohedge)

Dozens Of Mercedes “Totaled, Stripped Of Parts” After 75 Cars Stolen From Chicago Ride-Sharing Company

Ridesharing company Car2Go experienced a significant theft of its high end cars, including dozens of Mercedes CLA sedans and GLA sport utility vehicles, on what should have otherwise been a dull Monday in April in Chicago, according to Bloomberg.

Demand for Car2Go’s high end vehicles mysteriously spiked one Monday and, instead of these Benz’ being returned, they wound up congregated together on several blocks in West Chicago. When the company’s employees went to retrieve the vehicles, they found a group of thieves had claimed them as their own. Some blocked the vehicles in to prevent repossession while others threatened the company’s employees.

And while Car2Go has the ability to remotely disable vehicles, the situation made it difficult for them to figure out which ones to disable. After the theft, Facebook videos begin showing up of Mercedes’ around Chicago being joyridden, totaled and stripped of parts. Kendell Kelton, a Car2Go spokeswoman said:

“This was a unicorn incident for us as a company. We’ve never seen this type of fraudulent activity at this scale ever, ever.”

Once Car2Go was unable to retrieve the cars on their own, they asked the Chicago Police Department for help. By the middle of the week, the company had suspended service in Chicago altogether, tacitly acknowledging that they couldn’t figure out the difference between legitimate customers from theives. A total of 75 cars were compromised and all were eventually recovered, despite the fact that some of them have been destroyed.

Although rare, this incident highlights one of the major risks inherent to shared internet-connected vehicles. As scooter sharing services are also finding out, lending out a bunch of luxury vehicles to almost anybody that wants them is a great way to wind up with them vandalized or stolen.

Ride sharing networks have struggled in general of late, especially with the rise of Uber and Lyft. Car2Go recently merged with BMWs car sharing network, ReachNow, in hopes of strengthening their operations and broadening their appeal. Together, they operate in a total of nine cities. Car2Go had traditionally subjected all of its users to background checks conducted by humans, but quicker sign ups became a “must have” for ride sharing companies that wanted to bring on more new members faster.

“You see Uber or Lyft, or Airbnb, or all the scooters—they all have instant verification,” Kelton said.

The executive team in Europe, where fraud is much less prevalent, was also eager to lower barriers to entry. So in April, the company stopped conducting manual background checks in favor of automated ones – and almost immediately, about 20 people orchestrated the Mercedes theft by setting up 80 phony accounts using fake or stolen credit cards as payment methods. It’s still unclear whether the theft was a direct result of the policy change or not.

And oddly, the thieves didn’t seem to have much more than joyriding in mind. Many of the vehicles still had their Car2Go stickers on them, functional GPS trackers and license plates. Officers patrolling the area had little trouble spotting the vehicles, because nothing had been modified on them. On one day, police arrested almost 2 dozen joyriders. Only one person was charged with a felony: a 19-year-old who was found with a pocket full of fake credit cards.

This type of attack was unprecedented, but there has been an ongoing stream of smaller incidents in years past. Enterprise, for instance, stopped operating its car sharing service in Chicago in 2017 due to high rates of fraud and vandalism. ReachNow had to wrap up service in Brooklyn in 2018 after many vehicles begin disappearing after the company implemented an automated approval process.

Also, for Car2Go, it hasn’t been unusual for people to sublease vehicles after they order them from the service. The practice is in violation of Car2Go’s rules and has been an issue in Chicago since the company started operating there. Car2Go has since reverted back to manually reviewing new accounts in Chicago and says it hasn’t had any serious issues since then.

end
The storm is set to hit Louisiana on Saturday and it will be devastating..especially because New Orleans is below sea level and the Mississippi River is already 10 feet above levels i.e. at 16 feet
(zerohedge)

Up To 25 Inches Of Rain! – New Orleans Faces “Storm Of Biblical Proportions”

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

New Orleans is about to be hit by “an extreme rainfall event” that is likely to be the worst disaster that the city has seen since Hurricane Katrina.

It is being projected that Tropical Storm Barry could officially become a hurricane before it makes landfall on Saturday, but in this case the wind speed is not really that important.  Instead, the massive amount of rain that this immense storm will dump on southern Louisiana is the greatest danger, because the region is potentially facing flooding that is absolutely unprecedented.  In fact, one weather expert is even warning that the flooding could be so dramatic that it might actually “change the course of American history”

Weather expert Eric Holthaus warned that, while the impending disaster would be “an entirely different type” of flooding than 2005’s Katrina, it could be just as harmful – and might even “change the course of American history.”

So why is there so much concern?

Well, the NOAA is now projecting that some portions of southern Louisiana could get up to 25 inches of rain from this storm

The NOAA Weather Prediction Center (WPC) upped its rainfall forecast for Barry on Thursday afternoon, calling for a pocket of 20-25” amounts near Barry’s track between Thursday and Sunday evening. It’s very unusual for a NOAA/WPC forecast to depict amounts above 20”, which testifies to the center’s high confidence in this extreme rainfall event.

Many parts of New Orleans are already severely flooded, and if that amount of rain actually falls on the city over the next several days the water pumps are going to be completely overwhelmed.

In addition, this is the very first time that New Orleans has ever had to deal with a tropical system when water levels on the Mississippi River are this high.

According to CNN, the river is about 8 to 10 feet higher than it normally would be at this time of the year…

Tropical Storm Barry presents New Orleans with an unprecedented problem, according to the National Weather Service.

The Mississippi River, which is usually at 6 to 8 feet in midsummer in the Big Easy, is now at 16 feet, owing to record flooding that’s taken place this year all along the waterway.

Tropical Storm Barry is going to produce a substantial storm surge, and normally that wouldn’t be too much of a problem, but in this case it could push the water level in the Mississippi River above the levee system that protects New Orleans.  The following comes from the Daily Mail

The center warned New Orleans residents that if the storm becomes a hurricane, it could potentially bring a coastal storm surge into the mouth of the Mississippi River capable of raising the river’s height to 20 feet above sea level – the highest crest in more than 90 years and high enough to overflow some sections of the levee system protecting the city.

We are being told that authorities have “great confidence” in the levee system, but we all remember what happened during Hurricane Katrina.

So basically New Orleans is facing a perfect recipe for flooding, and nobody is quite sure what is going to happen next.  Already, a state of emergency has been declared in five parishes

“Look, there are three ways that Louisiana floods: storm surge, high rivers and rain,” Gov. John Bel Edwards said Thursday. “We’re going to have all three.”

States of emergency have been declared in Orleans, Jefferson, St. Bernard, Plaquemines and St. Charles parishes. Jefferson Parish and Plaquemines Parish have instituted mandatory evacuations as a precaution in low-lying areas or those outside major levees.

And at this point, we don’t have to wonder if there will be “catastrophic flooding” in New Orleans, because some parts of the city are already under “3 to 4 feet of water” thanks to all of the rain that has already fallen…

After Wednesday’s onslaught of heavy rain, Valerie Burton said her neighborhood looked like a lake outside her door.

“There was about 3 to 4 feet of water in the street, pouring onto the sidewalks and at my door,” Burton said. “I went to my neighbors to alert them and tell them to move their cars.”

Over the next few days things will get a lot worse for New Orleans.

The only question is how much worse.

And guess what?  Once the storm leaves southern Louisiana, it is expected to head north directly through the heartland of America.

Yes, the exact same area that has been relentlessly pounded by storm after storm for months.  We were already potentially facing widespread crop failures all across the middle portion of the country, and this massive storm is going to make things much worse.

According to the NOAA, the 12 months ending in June were the wettest 12 months in all of U.S. history…

Rain – and plenty of it – was the big weather story in June, adding to a record-breaking 12 months of precipitation for the contiguous U.S. It’s the third consecutive time in 2019 (April, May and June) the past 12-month precipitation record has hit an all-time high.

And now here in July an absolutely monstrous storm is going to rip through the middle of the country at the worst possible time.

The scenarios that I have been warning about are starting to develop right in front of our eyes, and many Americans are becoming extremely concerned about what the months ahead will bring.

It seems like every week we are talking about another unprecedented disaster.  America is being hammered over and over again, and this latest blow to New Orleans looks like it could be extremely severe.

Let us hope that this storm does not turn out to be as bad as the meteorologists are now projecting, because it appears that many Americans are about to have their lives completely turned upside down.

end
J and J tumble on reports of a criminal probe as to whether they knew that their talc could produce cancer
(courtesy zerohedge)

J&J Shares Tumble On Report Of ‘Asbestos In Talc’ Criminal Probe

Johnson & Johnson shares are down over 5% after Bloomberg reports that, according to people with knowledge of the matter, the U.S. Justice Department is pursuing a criminal investigation into whether Johnson & Johnson lied to the public about the possible cancer risks of its talcum powder…

Shareholders are selling first, thinking later…

While baby powder only accounts for a small fraction of J&J revenues, it is a core brand and the criminal probe, which hasn’t been reported previously, coincides with a regulatory investigation and civil claims by thousands of cancer patients that J&J’s Baby Powder talc was responsible for their illness.

Now, a grand jury in Washington is examining documents related to what company officials knew about any carcinogens in their products, the people said.

END
Expect a showdown between Republicans and Democrats as the House votes to block Trump from engaging in an Iranian war unless Congress approves first
(courtesy zerohedge)

House Votes To Block Trump From Iran War As Senate Showdown Looms

The Democrat-led House voted Friday to block President Trump from taking military actions against Iran without first seeking Congressional approval – a vote which had the support of more than two dozen Republicans, much to John Bolton’s chagrin.

According to the Washington Postthe vote will likely ensure a showdown with the GOP-controlled Senate over whether the restriction will be included in the final bill negotiated between the two chambers. Of note, the House version contains an exception for cases of self-defense.

Republicans in both the House and Senate have argued that such language would embolden Tehran amid a ‘divided’ Congress.

 

“Our national security is not a game. But that is exactly how Democrats are treating it,” said House Minority Leader Kevin McCarthy (R-CA) on Friday morning.

House Armed Services Committee Chairman Rep. Adam Smith (D-WA) pushed back, saying that Republicans “can opposite it, that’s fine, but to say we don’t care about national security . . . is a baldfaced lie.”

“In fact, our bill isn’t just good, it’s better than the ones that the Republican Party has put together, because we believe the Pentagon should be accountable,” added Smith.

At the center of the Iran amendment is a dispute over how much money should be allocated to the Pentagon and military this year. While Trump and the Republicans want $750 billion, the House bill limits it to $733 billion – a figure Smith says military leaders have previously endorse.

The Iran amendment is just one of several high-profile measures that lawmakers voted this week to include in the first defense authorization bill Democrats have steered through the House since taking over the majority earlier this year. Those measures, which range from ending U.S. participation in Saudi Arabia’s military campaign in Yemen to undoing President Trump’s ban on transgender troops, helped secure the support of liberal Democrats from the congressional Progressive Caucus, who had previously warned that they might vote against the defense bill. –Washington Post

Liberal Democrats, meanwhile say $733 billion is still too steep vs. the current fiscal year’s $717 billion allocation, and have proposed a $16.8 billion reduction to war funding – an effort which failed in the House.

SWAMP STORIES

Epstein sold his “Lolita Express” weeks before his arrest

(zerohedge)

Epstein Sold ‘Lolita Express’ Weeks Before Arrest: Court Document

A curious footnote has appeared in a court filing by Jeffrey Epstein’s attorneys suggesting that the registered sex offender sold his infamous Boeing 727-200 weeks before his Saturday arreston suspicion of sex-trafficking minors.

While arguing for why Epstein should be allowed to remain under house arrest pending trial, his attorneys made the case that the wealthy financier would “deregister or otherwise ground his private jet,” with the footnote reading “Mr. Epstein owns one private jet. He sold the other jet in June 2019,” placing the sale just weeks before his July 6 arrest upon his return from Paris in his Gulfstream G550according to Bloomberg

On other words, it looks like the financier unloaded the potentially ‘evidence-rich’ aircraft – said to have had a bed installed where passengers reportedly had group sex with young girls – right before the hammer came down.

According to investigative journalist Conchita Sarnoff – who first revealed the former president’s extensive flights on Epstein’s “lolita express” in a 2010 Daily Beast exposé – former president Bill Clinton flew on the ‘lolita express’ no fewer than 27 times. 

 

Via Radar Online

Clinton claimed in a Monday statement that he only took “a total of four trips on Jeffrey Epstein’s airplane” in 2002 and 2003, and that Secret Service accompanied him at all times – which Sarnoff told Fox News was a total lie.

Other famous guests include actor Kevin Spacey and Chris Tucker, who flew with Clinton to Africa to tour HIV/AIDS project sites, according to New York Magazine in 2002, which notes how much Epstein revered the former president.

In his eyes, Clinton as a species represents the highest evolutionary form of the political animal. To be up close to him, as he was during the African journey, is akin to seeing the rarest of beasts on a safari. As he put it to a friend upon his return from Africa, “If you were a boxer at the downtown gymnasium at 14th Street and Mike Tyson walked in, your face would have the same look as these foreign leaders had when Clinton entered the room.He is the world’s greatest politician.” –New York Magazine

Epstein’s ‘timely’ sale of the Lolita Express begs the question of what he may have known, and when he knew it. Notably, following a series of reports by the Miami Herald, the Senator Ben Sasse (R-NE) in February opened a probe into Epstein’s 2008 ‘sweetheart’ plea arrangement brokered by current Secretary of Labor Alex Acosta.

Timely airplane sales aside, several questions remain to be answered – including a better understanding of Epstein’s relationship with the FBI, and exactly what resulted in his ‘sweetheart’ plea deal in 2008.

Techno Fog@Techno_Fog

Yet more records.

1/23/2008: The FBI was directly involved in the DC meetings with the DOJ about Epstein.

Did Mueller attend?

View image on Twitter

Techno Fog@Techno_Fog

Looks like we have an answer on Epstein’s cooperation with the FBI/DOJ, thanks to great reporting by @MiamiHerald

The DOJ wanted to prosecute executives instead of a child molester.

DOJ priorities.

View image on TwitterView image on Twitter
END
It sure looks like Jeffrey Epstein is either an asset of the CIA or the Mossad.  In 2008 he gets off due to his “intelligence”.  Is Epstein using blackmail to garner information?
(Giraldi// American Herald Tribune)

Giraldi: Did Pedophile Jeffrey Epstein Work For Mossad?

Authored by Philip Giraldi via The American Herald Tribune,

The extent of Israeli spying directed against the United States is a huge story that is only rarely addressed in the mainstream media.

The Jewish state regularly tops the list for ostensibly friendly countries that aggressively conduct espionage against the U.S. and Jewish American Jonathan Pollard, who was imprisoned in 1987 for spying for Israel, is now regarded as the most damaging spy in the history of the United States.

Last week I wrote about how Israeli spies operating more-or-less freely in the U.S. are rarely interfered with, much less arrested and prosecuted, because there is an unwillingness on the part of upper echelons of government to do so. I cited the case of Arnon Milchan, a billionaire Hollywood movie producer who had a secret life that included stealing restricted technology in the United States to enable development of Israel’s nuclear weapons program, something that was very much against U.S. interests. Milchan was involved in a number of other thefts as well as arms sales on behalf of the Jewish state, so much so that his work as a movie producer was actually reported to be less lucrative than his work as a spy and black-market arms merchant, for which he operated on a commission basis.

That Milchan has never been arrested by the United States government or even questioned about his illegal activity, which was well known to the authorities, is just one more manifestation of the effectiveness of Jewish power in Washington, but a far more compelling case involving possible espionage with major political manifestations has just re-surfaced.

I am referring to Jeffrey Epstein, the billionaire Wall Street “financier” who has been arrested and charged with operating a “vast” network of underage girls for sex, operating out of his mansions in New York City and Florida as well as his private island in the Caribbean, referred to by visitors as “Orgy Island.” Among other high-value associates, it is claimed that Epstein was particularly close to Bill Clinton, who flew dozens of times on Epstein’s private 727.

*(Alex Acosta (L) Jeffrey Epstein (R))

Epstein was arrested on July 8th after indictment by a federal grand jury in New York. It was more than a decade after Alexander Acosta, the top federal prosecutor in Miami, who is now President Trump’s secretary of labor, accepted a plea bargain involving similar allegations regarding pedophilia that was not shared with the accusers prior to being finalized in court. There were reportedly hundreds of victims, some 35 of whom were identified, but Acosta deliberately denied the two actual plaintiffs their day in court to testify before sentencing.

Acosta’s intervention meant that Epstein avoided both a public trial and a possible federal prison sentence, instead serving only 13 months of an 18-month sentence in the almost-no-security Palm Beach County Jail on charges of soliciting prostitution in Florida. While in custody, he was permitted to leave jail for sixteen hours six days a week to work in his office.

Epstein’s crimes were carried out in his $56 million Manhattan mansion and in his oceanside villa in Palm Beach Florida. Both residences were equipped with hidden cameras and microphones in the bedrooms, which Epstein reportedly used to record sexual encounters between his high-profile guests and his underage girls, many of whom came from poor backgrounds, who were recruited by procurers to engage in what was euphemistically described as “massages” for money. Epstein apparently hardly made any effort to conceal what he was up to: his airplane was called the “Lolita Express.”

The Democrats are calling for an investigation of the Epstein affair, as well as the resignation of Acosta, but they might well wind up regretting their demands. Trump, the real target of the Acosta fury, apparently did not know about the details of the plea bargain that ended the Epstein court case. Bill and Hillary Clinton were, however, very close associates of Epstein. Bill, who flew on the “Lolita Express” at least 26 times, could plausibly be implicated in the pedophilia given his track record and relative lack of conventional morals. On many of the trips, Bill refused Secret Service escorts, who would have been witnesses of any misbehavior. On one lengthy trip to Africa in 2002, Bill and Jeffrey were accompanied by accused pedophile actor Kevin Spacey and a number of young girls, scantily clad “employees” identified only as “massage.” Epstein was also a major contributor to the Clinton Foundation and was present at the wedding of Chelsea Clinton in 2010.

With an election year coming up, the Democrats would hardly want the public to be reminded of Bill’s exploits, but one has to wonder where and how deep the investigation might go. There is also a possible Donald Trump angle. Though Donald may not have been a frequent flyer on the “Lolita Express,” he certainly moved in the same circles as the Clintons and Epstein in New York and Palm Beach, plus he is by his own words roughly as amoral as Bill Clinton. In June 2016, one Katie Johnson filed lawsuit in New York claiming she had been repeatedly raped by Trump at an Epstein gathering in 1993 when she was 13 years old. In a 2002 New York Magazine interview Trump said  “I’ve known Jeff for fifteen years. Terrific guy… he’s a lot of fun to be with. It is even said that he likes beautiful women as much as I do, and many of them are on the younger side. No doubt about it – Jeffrey enjoys his social life.”

Selective inquiries into wrongdoing to include intense finger pointing are the name of the game in Washington, and the affaire Epstein also has all the hallmarks of a major espionage case, possibly tied to Israel. Unless Epstein is an extremely sick pedophile who enjoys watching films of other men screwing twelve-year-old girls the whole filming procedure smacks of a sophisticated intelligence service compiling material to blackmail prominent politicians and other public figures. Those blackmailed would undoubtedly in most cases cooperate with the foreign government involved to avoid a major scandal. It is called recruiting “agents of influence.” That is how intelligence agencies work and it is what they do.

That Epstein was perceived as being intelligence-linked was made clear in Acosta’s commentswhen being cleared by the Trump transition team. He was asked “Is the Epstein case going to cause a problem [for confirmation hearings]?” … “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.’”

Questions about Epstein’s wealth also suggest a connection with a secretive government agency with deep pocketsThe New York Times reports that “Exactly what his money management operation did was cloaked in secrecy, as were most of the names of whomever he did it for. He claimed to work for a number of billionaires, but the only known major client was Leslie Wexner, the billionaire founder of several retail chains, including The Limited.”

But whose intelligence service? CIA and the Russian FSB services are obvious candidates, but they would have no particular motive to acquire an agent like Epstein. That leaves Israel, which would have been eager to have a stable of high-level agents of influence in Europe and the United States. Epstein’s contact with the Israeli intelligence service may have plausibly come through his associations with Ghislaine Maxwell, who allegedly served as his key procurer of young girls. Ghislaine is the daughter of Robert Maxwell, who died or possibly was assassinated in mysterious circumstances in 1991. Maxwell was an Anglo-Jewish businessman, very cosmopolitan in profile, like Epstein, a multi-millionaire who was very controversial with what were regarded as ongoing ties to Mossad. After his death, he was given a state funeral by Israel in which six serving and former heads of Israeli intelligence listened while Prime Minister Yitzhak Shamir eulogized: “He has done more for Israel than can today be said” 

*(Trump  (left) with Robert Maxwell (right) at an event.)

Epstein kept a black book identifying many of his social contacts, which is now in the hands of investigators. It included fourteen personal phone numbers belonging to Donald Trump, including ex-wife Ivana, daughter Ivanka and current wife Melania. It also included Prince Bandar of Saudi Arabia, Tony Blair, Jon Huntsman, Senator Ted Kennedy, Henry Kissinger, David Koch, Ehud Barak, Alan Dershowitz, John Kerry, George Mitchell, David Rockefeller, Richard Branson, Michael Bloomfield, Dustin Hoffman, Queen Elizabeth, Saudi King Salman and Edward de Rothschild.

Mossad would have exploited Epstein’s contacts, arranging their cooperation by having Epstein wining and dining them while flying them off to exotic locations, providing them with women and entertainment. If they refused to cooperate, it would be time for blackmail, photos and videos of the sex with underage women.

It will be very interesting to see just how far and how deep the investigation into Epstein and his activities goes. One can expect that efforts will be made to protect top politicians like Clinton and Trump and to avoid any examination of a possible Israeli role. That is the normal practice, witness the 9/11 Report and the Mueller investigation, both of which eschewed any inquiry into what Israel might have been up to. But this time, if it was indeed an Israeli operation, it might prove difficult to cover up the story since the pedophile aspect of it has unleashed considerable public anger from all across the political spectrum.

Senator Chuck Schumer, self-described as Israel’s “protector” in the Senate, is loudly calling for the resignation of Acosta. He just might change his tune if it turns out that Israel is a major part of the story.

END
Epstein is not having a good day as 12 more victims come forward and that should stpo his release and also bring on the new case against him
(zerohedge)

“They Have No Fear” – A Dozen New Epstein Abuse Victims Come Forward

Jeffrey Epstein’s defense team is arguing that their client should be released on house arrest until his trial. They’re also arguing that the charges being brought against Epstein in New York were previously resolved in Florida ten years ago, where Epstein struck his sweetheart deal with prosecutors led by now-Labor Secretary Alex Acosta.

But it appears the FBI’s request that any other victims of Epstein come forward succeeded in convincing more than a dozen women, whose cases were not part of the Florida prosecution, to come forward and testify about the abuse they suffered at the hands of Epstein.

Epstein

According to the Miami Herald, which revived prosecutors’ interest in Epstein with its ‘Perversion of Justice’ series of investigative reports about how Epstein was let off with a slap on the wrist and minimal jail time despite evidence that he was an inveterate, unrepentant pedophile. At least four women have contacted David Boies, the New York power-lawyer who represents some of Epstein’s victims, and at least 10 others have approached other lawyers who have previously represented Epstein’s victims.

Following Epstein’s arrest Saturday in New Jersey, four women have reached out to New York lawyer David Boies, and at least 10 other women have approached other lawyers who have represented dozens of Epstein’s alleged victims in the past.

Jack Scarola, a Palm Beach attorney, said at least five women, all of whom were minors at the time of their alleged encounters with Epstein, have reached out to either him or Fort Lauderdale lawyer Brad Edwards.

“The people we are speaking to are underage victims in Florida and in New York. They are not individuals whose claims have previously been part of any law enforcement investigation,” Scarola said.

[…]

“I believe that there was a fairly effective message that was delivered by New York authorities that victims need not fear that they will be treated in the same way that victims had been treated in South Florida,” Scarola said

For Epstein’s lawyers, the timing couldn’t be worse. The enigmatic financier’s legal team filed a motion Thursday for pre-trial release, arguing that Epstein had maintained a “spotless” record since pleading guilty to Florida state charges a decade ago. Epstein’s lawyers have offered to surrender his passport, “demobilize” his cars and his private jet, hire a security team to monitor Epstein, have him wear an ankle bracelet and have “trustees” live in Epstein’s $77 million Manhattan mansion along with hm. Epstein’s brother, Mark Epstein, has also pledged his Palm Beach estate for his brother’s bail.

Ep

Prosecutors are alleging that Epstein abused dozens of girls between 2002 and 2005. They have also argued that Epstein’s limitless means make him a flight risk, no matter how restrictive his bail conditions are.

But New York prosecutors – who say they found “an extraordinary volume of photographs of nude and partially nude young women and girls” while executing a search warrant at his Manhattan residence last weekend – have already argued that he’s likely to either flee the country or add to what they say are dozens of victims as young as 14 from New York to Palm Beach.

“I don’t care if he gives up his license and his jet, he still has the wherewithal to take off any time,” said Spencer Kuvin, a Palm Beach attorney who represents three Epstein accusers. “Think about it – if he was a plumber in Queens, do you think the judge would say ‘Yeah, let’s give him an ankle bracelet and send him home?'”

Prosecutors have also cited Epstein’s history of alleged witness intimidation as another reason he should be held.

12 years ago, Epstein signed a non-prosecution agreement with the US Attorney’s Office for the Southern District of Florida after federal agents identified three dozen girls who were allegedly victimized by Epstein at his mansion in Palm Beach.

As part of the deal, Epstein was allowed to plead guilty to two lesser prostitution-related charges and serve 13 months in the Palm Beach County jail. During his stay, Epstein’s valet picked him up six days a week and drove him to his West Palm Beach office, where he worked under a work-release program.

Judging by their stories, it appears Epstein abused many of these women in New York, which would clearly constitute new crimes that would be outside the scope of his previous deal.

end
Acosta resigns
(courtesy zerohedge)

Acosta Resigns Over 2008 Epstein Plea Deal Controversy

Labor Secretary Alexander Acosta announced his resignation on Friday after receiving harsh criticism for his role in brokering a 2008 plea deal with registered sex-offender and pedophile Jeffrey Epstein.

I do not think it is right or fair to have me as the focus,” said Acosta, adding “I thought the right thing was to step aside.”

Steve Herman

@W7VOA

Alongside @POTUS on @WhiteHouse South Lawn, @SecretaryAcosta announces he’s leaving his job.

Steve Herman

@W7VOA

They say @SecretaryAcosta called @POTUS this morning and informed him of this and it was the labor secretary’s decision to leave.

Jim Acosta

@Acosta

WH officials initially viewed Alex Acosta’s performance earlier this week as stabilizing. But last night a senior WH official told us Sec. Acosta was “not out of the woods.”

Acosta held a press conference on Wednesday in which he suggested Epstein’s deal was the fault of Florida state prosecutors, or possibly the judge, or anyone else but him – and that Epstein would have walked free without the deal he was behind.

“I wanted to help them,” Mr. Acosta, who was the top federal prosecutor in Miami at the time, said of the victims during an hourlong session with reporters at the Labor Department. “That is why we intervened. And that’s what the prosecutors of my office did — they insisted that he go to jail and put the world on notice that he was and is a sexual predator.” –NYT

TicToc by Bloomberg

@tictoc

TWO DAYS AGO:

Reporter: What makes you so confident that Trump won’t fire you?

Acosta: “I serve at the pleasure of the president. If at some point he says, you’re not the right person for this right now, I respect that”

Embedded video

TicToc by Bloomberg

@tictoc

EARLIER: Acosta defended his handling of Epstein’s plea deal when he was the top federal prosecutor in southern Florida over a decade ago.

NOW: He’s resigning

Embedded video
See TicToc by Bloomberg’s other Tweets

Not true said former Palm Beach County state’s attorney, Barry Krischer – who said that Acosta abandoned a 53-page federal indictment “after secret negotiations between Mr. Epstein’s lawyers and Mr. Acosta,” according to The Hill.

Peter Alexander

@PeterAlexander

READ IT HERE: Former Palm Beach (FL) State Atty Barry Krischer challenges Acosta’s characterization of why Acosta pursued a plea deal for Epstein: “I can emphatically state that Mr. Acosta’s recollection of this matter is completely wrong.”

While Epstein has allegedly victimized up to 60 girls, many of them underage according to the Miami Herald, his sweetheart deal for just two counts of solicitation of prostitution (one with a minor), and included working from his West Palm Beach office for as much as 12 hours a day for up to six days a week. He was also required to register as a sex offender, and was given immunity from federal prosecution.

end

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

Powell Comments to Senate Banking Committee on Thursday

  • Libra Raises a Lot of Serious Concerns
  • Companies with More Debt Hit Harder in Downturn (Brilliant!)
  • U.S. Economy in Very Good Place but Uncertainties weigh
  • We’ve signaled that We’re Open to More Accommodation
  • We’ll Use Our Tools to Keep Expansion Going
  • Housing is Sideways but Without Risky Problems
  • Worried by Some Weakness in the Business Sector
  • Labor Market is Very Tight, Employers Training Workers
  • Fed Has Room to Cut, May Have Kept Policy Too Tight

Not that is really matters right now, but Core Inflation for June is +0.3 % m/m and +2.1% y/y. This allegedly key Fed inflation metric has traded between 2% and 2.4% for 16 months – despite the usual BLS chicanery that diminishes real inflation.  Headline inflation is 1.6%.  It is being muted by energy (-3.4% y/y) and utility (-2.1% y/y – natural gas) prices.

Shelter is +3.5% y/y due to rent inflation.  Medical care is +2.5% y/y.  Household furnishings & operations increased 0.8% in June, the biggest increase since February 1991.  The increase is due to Gardening & Lawn Care jumping 6.1%.

Energy prices tumbled from mid-May until late June.  Gasoline is up about 20% from its June low.  So, July CPI could be much hotter – unless the BLS works its magic to mitigate real inflation.

US core inflation posts biggest gain in nearly 1 1/2 years

The overall CPI edged up 0.1% last month, held back by cheaper gasoline and food prices… In June, gasoline prices dropped 3.6% after falling 0.5% in May

https://www.cnbc.com/2019/07/11/consumer-price-index-june-2019.html

BBG Economics: Firming June CPI Won’t Stop Fed Cut at July Meeting

Ironically, a strong rebound in core CPI comes on the back of [Powell’s]… testimony and Fed minutes, which suggested a return to Fed’s 2% inflation target “would take longer than previously projected.”

  • Elevated uncertainty appears to be a stronger catalyst for “insurance cuts” than below-target inflation…
  • If firming inflation persists, the more hawkish committee members will be less willing to relent…

The big farce in Powell’s dovish braying to Congress the past two days is his over-reliance on the word ‘uncertainty’.  This seems to be the main factor upon which Powell rests his case for a rate cut.  When isn’t there uncertainty?  Are the naïve academics that run the Fed trying to convince us that their usual forecasting is largely certain?  Do these academics really believe that economics is hard science?

@NorthmanTrader: It bears repeating: Jerome Powell is promising rate cuts with the loosest financial conditions since 1993 [Chart at link]    https://twitter.com/NorthmanTrader/status/1149014191107465218?s=09

ESUs and stocks surged again on Thursday in anticipation of more Powell dovish braying at the Senate.  ESUs and stocks peaked 15 minutes before Powell’s appearance.  Obviously, traders wanted to jettison their position earlier than on Wednesday, when the market peaked 6 minutes prior to Jerry’s testimony.

@realDonaldTrump: Mexico is doing great at the Border, but China is letting us down in that they have not been buying the agricultural products from our great Farmers that they said they would. Hopefully they will start soon!   10:04 ET [Some pundits blame this DJT tweet for the early decline yesterday.  However, ESUs and stocks were already about 20 minutes into a decline when the tweet appeared.

Disastrous” 30 Year Auction: Foreigners Flee As Bid to Cover Plummet

Indirects (foreigners) clearly sitting out today auction, and taking down just 50% of the final allotment, far below last month’s 60.8%, and the recent average of 58.9%, and more importantly the lowest since February 2015. And with Directs taking down 16.8%, or above the 14.6% recent average, it left Dealers taking down 33.2%, the most since last November…

https://www.zerohedge.com/news/2019-07-11/disastrous-30-year-auction-foreigners-flee-bid-cover-plummets

Yields jump on stronger-than-expected inflation data, weak Treasury auction

https://www.cnbc.com/2019/07/11/us-bonds-yields-tick-lower-after-fed-chair-powells-dovish-testimony.html

@NewYorkFed: The UIG measures continue to estimate trend CPI inflation to be approximately in the 1.9% to 2.6% range… The UIG [Underlying Inflation Gauge] “full data set” measure decreased from a currently estimated 2.71% in May to 2.64% in June.

U.S. underlying inflation stirring; labor market tightening – may limit the scope of the impending easing cycle…  https://www.reuters.com/article/us-usa-economy-idUSKCN1U61NR

After the ugly 30-year auction, ESUs and stocks tumbled to session lows.  After a tepid rally attempt for the VIX Fix, ESUs and stocks hit new session lows.  The pre-last hour rally appeared.  It stalled 15 minutes before the final hour.  From 14:38 ET until 15:45 ET, ESUs traded within 2 handles.   Apparently the girls & boys that have tried to push the S&P 500 Index above 3000 for the past two days lacked confidence in their endeavor.  So, they waited until the last 15 minutes to manipulate ESUs higher and close the S&P 500 Index above 3000.  The last-gasp rally hit 2999.91 at the close.

The fools at the Fed might have turned the bond market with their incessant dovish pap.  The 30-year bond is breaking down.  The 10-year note is teetering and the two-year’s yield appears to have bottomed. The odds are very high that if the Fed cuts rates 50bps this month, the 2-year yield could cross above the Fed Funds Target Rate and signal that the Fed is too loose.  You can’t make this up!

Over the past several months there has been beaucoup pontificating about the cascading 2-10 yield spread and how it is signaling recession.  Most pundits forgot to mention that this curve changes direction a few quarters before the recession arrives.  Furthermore, when the 2-10 curve moves above its monthly moving average, stocks have cratered soon thereafter: December 2000 and July 2007.

Cargo Ship Owned by JPMorgan Chase Seized After 20 TONS of Cocaine Found Onboard

The MSC Gayane, which is owned by J.P. Morgan Asset Management and chartered to MSC, is subject to possible forfeiture.  [As of now, no comment from renowned virtue signaler Jamie Dimon.]

https://jonathantgilliam.com/cargo-ship-owned-by-jpmorgan-chase-seized-after-20-tons-of-cocaine-found-onboard/

Wall Street banks bailing on troubled U.S. farm sector

JPMorgan grew its farm-loan portfolio by 76 percent, to $1.1 billion, between 2008 and 2015… Total U.S. farm debt is on track to rise to $427 billion this year, up from an inflation-adjusted $317 billion a decade earlier and approaching levels seen in the 1980s farm crisis…

   But now… JPMorgan and other Wall Street banks are heading for the exits, according to a Reuters analysis of the farm-loan holdings they reported to the Federal Deposit Insurance Corporation (FDIC).

    The agricultural loan portfolios of the nation’s top 30 banks fell by $3.9 billion, to $18.3 billion,between their peak in December 2015 and March 2019, the analysis showed. That’s a 17.5% decline…

https://www.reuters.com/article/us-usa-farmers-lending-insight/wall-street-banks-bailing-on-troubled-u-s-farm-sector-idUSKCN1U618F

UCLA prof guilty of conspiring to steal missile secrets for China, could face more than 200 years in prison – Shih and co-defendant Kiet Ahn Mai tried to access illegally a protected computer owned by a U.S. company that manufactured semiconductor chips called monolithic microwave integrated circuits (MMICs). MMICs are used by the Air Force and Navy in fighter jets, missiles and missile guidance technology, and electronic military defense systems…    https://www.campusreform.org/?ID=13423

“The relationship between the slack in the economy or unemployment and inflation was a strong one, fifty years ago … and has gone away,” Fed Chair Jay Powell said in his testimony in Congress.https://cnb.cx/2jD0jVp

WaPo: Joe Biden’s Senate records could answer questions about his past actions — but they’re being kept secret – “The entire collection is unavailable,” said Andrea Boyle Tippett, a spokeswoman for the University of Delaware… https://www.msn.com/en-us/news/politics/joe-bidens-senate-records-could-answer-questions-about-his-past-actions-%E2%80%94-but-theyre-being-kept-secret/ar-AAEc4gW?ocid=spartanntp

Biden does it again!  For the past few months, Democrats have vehemently denied that they advocate ‘open borders’.  Yesterday Joe asserted, “I respect no borders and cannot be contained by any walls.”

Elizabeth Warren Will Increase Admission of Immigrants by 800% if She Wins in 2020

https://saraacarter.com/elizabeth-warren-will-increase-admission-of-immigrants-by-800-if-she-wins-in-2020/

De Blasio: I’ll pay female athletes equally if elected president https://trib.al/J7KVcyd

AOC ups ante in feud with Pelosi, suggests speaker is ‘singling out’ newly elected ‘women of color’

https://www.foxnews.com/politics/ocasio-cortez-pelosi-singling-out-women-color

Women of color are now hurling the race card at the Dem elites who have played that card for decades.

Democratic lawmaker unloads on Ocasio-Cortez, chief of staff for ‘using the race card’

Clay, a member of the Congressional Black Caucus, fumed at Ocasio-Cortez and the group of progressive lawmakers that includes Reps. Rashida Tlaib (Mich.), Ilhan Omar (Minn.) and Ayanna Pressley (Mass.).

    “What a weak argument, because you can’t get your way and because you’re getting pushback you resort to using the race card?… I agree with the Speaker. Four people, four votes out of 240 people, who cares.”…   https://thehill.com/homenews/house/452671-democratic-lawmaker-unloads-on-ocasio-cortez-chief-of-staff-for-using-the-race

DJT: Democrats had to quickly take down a tweet called “Kids in Cages, Inhumane Treatment at the Border,” because the horrible picture used was from the Obama years. Very embarrassing

Jeffrey Epstein’s ‘Infinite Means’ May Be a Mirage

Mr. Epstein’s wealth may have depended less on his math acumen than his connections to two men — Steven J. Hoffenberg… and Leslie H. Wexner, the billionaire founder of retail chains…

    His investment firm reported having $88 million in capital from its shareholders in 2002…

    Mr. Epstein’s big break came when…tutored the son of Alan Greenberg, the chairman of the mighty investment bank Bear Stearns, and ended up joining the firm…

    By 1998 — the year he bought Little St. James, a 70-acre island off St. Thomas… Mr. Epstein said he had told clients that he accepted only investments greater than $1 billion…

https://www.nytimes.com/2019/07/10/business/jeffrey-epstein-net-worth.html

END

Let us close out the week with two commentaries and interviews

The first is Greg Hunter and the second, a dandy with Von Greyerz

(courtesy Greg Hunter and Egon Von Greyerz)

Epstein Sex Web Exposed, Trump Social Media Summit, Inflation Coming

By Greg Hunter On July 12, 2019

Billionaire money manager Jeffery Epstein has been arrested for sex trafficking and other charges in New York this week. He reportedly catered to top world leaders, politicians and business executives on his private island, reportedly called “Orgy Island.” The case is way more than one billionaire’s lust for underage girls. It could deliver a significant blow to the global elite of a magnitude that has never happened before in history.

President Trump held a “Social Media Summit” at the White House. In reality, it was a meeting of victims of big tech censorship, such as conservatives and pro-life groups that big tech routinely blocks, shadow-bans or outright de- platforms because it does not like their views. Trump is getting ready to level the social media playing field well ahead of the 2020 Presidential election. Big tech executives will meet in the White House in a few weeks with the President.

The Fed signaled today it will cut rates in a few weeks. I thought the economy was great. What happened? Apparently, the economy is not so great, especially abroad. The ECB (European Central Bank) is going to print up a fresh 2.9 trillion euros to combat deflation and a downward spiraling economy. It seems the entire world, including the USA, is seeing signs of the economy slowing down dramatically.

Join Greg Hunter of USAWatchdog.com as he talks about these stories and more in the Weekly News Wrap-Up.

-END-

Egon von Greyerz interviewed by Lynette Zang

July 12, 2019

by Egon von Greyerz

“A Crazy World! We have the biggest bubble ever in history and it will all end in tears.”

This is how Egon starts the interview with Lynette. Egon goes on to discuss that we will soon begin a most spectacular secular bear market in stocks and bonds.

Central banks will panic as they fail with their rescue attempt of the financial system. They can never save a world infested with debt of $250 trillion.

In addition, the real derivatives amount outstanding is at least $1.5 quadrillion and when counterparty fails, the derivative bubble will implode.

Egon also talks about the institutions’ scandalous investment policy of buying government bonds that will never be repaid with real money. Retirees will suffer and end up with no pension.

Lynette and Egon agree that wealth preservation is now critical and the best way to protect wealth is to own physical gold and silver.

But precious metals should not be held for the purpose of price gains but as insurance against a rotten financial system.

As the system comes under pressure, central banks will lose control of interest rates which will go dramatically higher.

When you hold gold for wealth preservation reasons, you should not look at the price. Nevertheless, gold and silver will reach much higher levels which Egon mentions in the interview.

Gold and silver is for everyone, not just for the wealthy says Egon. Anyone could afford 1 gram of gold for $45 or an ounce of silver for $16. When hyperinflation arrives like in Venezuela, small amounts of gold and silver will be life saving.

Egon doesn’t believe in an orderly reset although the US will try. The real reset will be disorderly with bubble assets imploding and gold and silver surging.

Egon von Greyerz

 

Well that about does it for tonight

I will see you on MONDAY night

H

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