JULY 17/SILVER CONTINUES TO SHINE UP ANOTHER 29 CENTS TO $15.93//GOLD REVERSES COURSE AND IT IS UP $11.35 TO $1421.35//THE UAE VESSEL LOCATED BUT STILL HAVE NOT HEARD FROM CREW//SENATOR RAND PAUL ON A MISSION TO SOFTEN TENSIONS WITH IRAN//SWAMP STORIES FOR YOU TONIGHT//

GOLD: $1421.35  UP  $11.35 (COMEX TO COMEX CLOSING)

 

 

Silver

$15.93  UP 29 CENTS  (COMEX TO COMEX CLOSING)//

 

 

 

Closing access prices:

Gold : $1426.50

 

silver:  $15.97

 

YOUR DATA…

 

COMEX DATA

 

 

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

today RECEIVING 1/6

EXCHANGE: COMEX
CONTRACT: JULY 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,409.200000000 USD
INTENT DATE: 07/16/2019 DELIVERY DATE: 07/18/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
661 C JP MORGAN 1
690 C ABN AMRO 2
737 C ADVANTAGE 1 5
905 C ADM 3
____________________________________________________________________________________________

TOTAL: 6 6
MONTH TO DATE: 864

 

NUMBER OF NOTICES FILED TODAY FOR  JULY CONTRACT: 6 NOTICE(S) FOR 600 OZ (0.0186 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  864 NOTICES FOR 86400 OZ  (2.6874 TONNES)

 

 

 

SILVER

 

FOR JULY

 

 

23 NOTICE(S) FILED TODAY FOR 105,000  OZ/

 

total number of notices filed so far this month: 3786 for   18,930,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 10997 DOWN 98 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 9,751 DOWN 307

 

 

 

 

Let us have a look at the data for today

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IN SILVER THE COMEX OI ROSE BY AN ATMOSPHERIC AND CRIMINALLY  SIZED 9372 CONTRACTS FROM 220,093 UP TO 229,465 WITH THE HUGE 31 CENT GAIN IN SILVER PRICING AT THE COMEX.

TODAY WE ARRIVED CLOSER TO  AUGUST’S 2018  RECORD SETTING OPEN INTEREST OF 244,196 CONTRACTS.

WE HAVE ALSO WITNESSED A LARGE AMOUNT OF PHYSICAL METAL STAND FOR COMEX DELIVERY AS WELL WE ARE WITNESSING CONSIDERABLE LONGS PACKING THEIR BAGS AND MIGRATING OVER TO LONDON IN GREATER NUMBERS IN THE FORM OF EFP’S.  WE WERE  NOTIFIED  THAT WE HAD A HUGE SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:,

0 FOR JULY. 0 FOR AUGUST, 6139 FOR SEPT, AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  6139 CONTRACTS. WITH THE TRANSFER OF 6139 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 6139 EFP CONTRACTS TRANSLATES INTO 30.695 MILLION OZ  ACCOMPANYING:

1.THE 31 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

20.885 MILLION OZ INITIAL STANDING FOR JULY

 

WE HAD SOME ZERO 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:

17,195 CONTRACTS (FOR 12 TRADING DAYS TOTAL 17,195 CONTRACTS) OR 85.98 MILLION OZ: (AVERAGE PER DAY: 1432 CONTRACTS OR 7.164 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY:  85.98 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 12.28% 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:          1243.58   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 AN UNBELIEVABLE SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 9372, WITH THE 31 CENT GAIN IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  GIGANTIC SIZED EFP ISSUANCE OF 6139 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 AN OUT OF THIS WORLD SIZED: 15,511 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 6139 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 9372  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 31 CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $15.64 WITH RESPECT TO YESTERDAY’S TRADING.  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. 1.1149 BILLION OZ TO BE EXACT or 164% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 23 NOTICE(S) FOR 115,000 OZ OF SILVER

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

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

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ  MAY: 36.285 MILLION OZ ; JUNE/2018  (5.420 MILLION OZ) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   )  FOR AUGUST 6.065 MILLION OZ. , SEPT:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./ DEC. AT 21.925 MILLION OZ   JANUARY AT  5.825 MILLION OZ.AND FEB 2019:  2.955 MILLION OZ/ MARCH: 27.120 MILLION OZ/  APRIL AT 3.875 MILLION OZ/ A MAY:  18.845 MILLION OZ ..JUNE 2.660 MILLION OZ//JULY 20.885 MILLION OZ
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018) AND NOW AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

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

.

 

IN GOLD, THE OPEN INTEREST FELL BY A CONSIDERABLE 5472 CONTRACTS, TO 601,900 WITH THE  $2.15 PRICING LOSS WITH RESPECT TO COMEX GOLD PRICING YESTERDAY// /THE SPREADING LIQUIDATION HAS NOW COMMENCED FOR GOLD….

AGAIN WE HAD A HUGE DISCREPANCY BETWEEN THE PRELIMINARY NUMBERS AND FINAL NUMBERS . TODAY, OVER 6,000 CONTRACTS AND GENERALLY WHEN THIS OCCURS WE HAVE A RAID.  THEY DID NOT DISAPPOINT US ON THIS REGARD YESTERDAY.

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A GOOD SIZED 5676 CONTRACTS:

APRIL 0 CONTRACTS,JUNE: 0 CONTRACTS, AUGUST 2019: 5676 CONTRACTS, DEC>  0 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 601,900.  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 Small SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 204 CONTRACTS: 5472 CONTRACTS DECREASED AT THE COMEX  AND 5676 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 204 CONTRACTS OR 20,400 OZ OR 0.63 TONNES.  YESTERDAY WE HAD A SMALL LOSS OF $2.15 IN GOLD TRADING.AND WITH THAT  LOSS IN  PRICE, WE  HAD A SMALL GAIN IN GOLD TONNAGE OF 0.63  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 SILVER WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING ACTIVE DELIVERY MONTH (JULY), AND THAT IS WHEN THE CROOKS SELL THEIR SPREAD POSITIONS BUT NOT AT THE SAME TIME OF THE DAY.  THEY WILL USE THE SELL SIDE OF THE EQUATION TO CREATE THE CASCADE (ALONG WITH THEIR COLLUSIVE FRIENDS) AND THEN COVER ON THE BUY SIDE OF THE SPREAD SITUATION AT THE END  OF THE DAY. THEY DO THIS TO AVOID POSITION LIMIT DETECTION. THE LIQUIDATION OF THE SPREADING FORMATION CONTINUES FOR EXACTLY ONE WEEK AND ENDS ON FIRST DAY NOTICE.” 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JULY : 94,925 CONTRACTS OR 9,492,500 oz OR 295.26 TONNES (12 TRADING DAY AND THUS AVERAGING: 7910 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 12 TRADING DAY IN  TONNES: 295.26 TONNES

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

THUS EFP TRANSFERS REPRESENTS 295.26/3550 x 100% TONNES =8.311% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     3222.08  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 CONSIDERABLE SIZED DECREASE IN OI AT THE COMEX OF 5472 DESPITE THE TINY PRICING LOSS THAT GOLD UNDERTOOK YESTERDAY($2.15)) //.WE ALSO HAD  A GOOD SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 5676 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 5676 EFP CONTRACTS ISSUED, WE  HAD AN SMALL GAIN OF 204 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

5676 CONTRACTS MOVE TO LONDON AND 5472 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 0.6345 TONNES). ..AND THIS HUGE INCREASE OF  DEMAND OCCURRED DESPITE THE LOSS IN PRICE OF $2.15 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX. WE HAS NOW COMMENCED WITH SPREADING ACCUMULATION IN GOLD AS  THE MONTH PROCEEDS/

 

 

 

we had:  6 notice(s) filed upon for 600 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD UP $11.35 TODAY//

 

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

 

INVENTORY RESTS AT 799.37 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 29 CENTS TODAY:

 

A BIG CHANGE WITH RESPECT TO SILVER INVENTORY  AT THE SILVER SLV:

A MASSIVE “PAPER” DEPOSIT OF: 8.518 MILLION OZ//

 

 

 

 

 

/INVENTORY RESTS AT 341.036 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 COMEX SILVER ROSE BY AN ATMOSPHERIC SIZED 9372 CONTRACTS from 220,093 UP TO 229,465 AND CLOSER TO THE NEW COMEX RECORD SET LAST IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  1 1/3 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.  AS YOU CAN SEE, WE HAVE RECORD HIGH OPEN INTERESTS IN SILVER  ACCOMPANIED BY A CONTINUAL LOWER PRICE WHEN THAT RECORD WAS SET…..THE SPREADERS HAVE COMMENCED THEIR ACCUMULATION OF OPEN INTEREST CONTRACTS IN 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. 5676  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 5676 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE OI GAIN AT THE COMEX OF 9372  CONTRACTS TO THE 6139 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A RECORD GAIN OF 15,511 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 77.555 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,  2.660 MILLION OZ FOR JUNE WITH JULY AT 20.885 MILLION OZ STANDING SO FAR.

 

 

RESULT: AN ATMOSPHERIC SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 31 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A HUGE SIZED 6139 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

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

 

 

(report Harvey)

.

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 5.92 POINTS OR 0.20%  //Hang Sang CLOSED DOWN 24.45 POINTS OR 0.09%   /The Nikkei closed DOWN 66.07 POINTS OR 0.31%//Australia’s all ordinaires CLOSED UP .42%

/Chinese yuan (ONSHORE) closed UP  at 6.8771 /Oil UP TO 57.98 dollars per barrel for WTI and 64.92 for Brent. Stocks in Europe OPENED RED//ONSHORE YUAN CLOSED UP // LAST AT 6.8771 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8794 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 STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER 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

4/EUROPEAN AFFAIRS

i)UK

i)BoJo’s new plan would sideline parliament on Oct 31 and thus guarantee a no deal brexit

(zerohedge)

ii)EU

Merkel’s ally , Ursula Von Der Leyen has been elected to the top EU post replacing Juncker

(zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)Turkey/USA

So far, no sanctions.  However Turkey will not be getting the F 35 fighter jets

(zerohedge)

ii)Turkey/Iraq

Erdogan will not be a happy camper with this news:  In Northern Iraq (ERBIL),  a vice consul was assassinated in a brazen daytime attack.  The Kurds as you know are very angry with the constant incursion of Turkey into Norther Iraq

(courtesy zerohedge)

iii)Iran/UAE

The missing vessel has been located in Iran.  However Iran claims that the vessel was disabled and needed Iran’s help.  That sounds good except for the fact that the crew has not been heard from since Saturday,

your guess is as good as mine on this one..

(zerohedge)

6. GLOBAL ISSUES

Simon Black comments on the fact that 1/4 of all bond issuance is negative in yield and now he witnesses that some junk bonds are negative yielding.  Why do investors buy this crap..because many expect yields to go deeper into the negative and thus these bonds will yield a capital gain. This is absurd and that is why he buys gold

 

(Simon Black)

7. OIL ISSUES

Oil prices plunge and the deep state is in panic mode as Trump sends in Rand Paul to ease tensions with Iran

(zerohedge)

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

i)For your interest, a gigantic one tonne gold coin has made its way to Wall Street

( Loder./WallStreet Journal/GATA)

ii)We brought this to your attention yesterday but it is worth repeating..China has reduced its uSA holdings again amid the trade war escalation  It is now down to 1.11 trillion uSA dollars.

(zerohedge)

iii)Tom Luongo tackles gold.  He assumes China has only 4,000 tonnes. I believe that they have accumulated gold for over 25 years and have amassed something like 20-25,000 tonnes.  This would make Tom’s point mute.

a good read…

(Tom Luongo)

iv)Why Judy Shelton, a gold bug would be great as a Fed Governor

(Mark Hendrickson/EpochTimes)

10. USA MARKETS

 

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

II)MARKET TRADING/USA

 

 

ii)Market data/USA

Despite a collapse in mortgage rates, building permits have now plunged the most since 2006..this is quite telling and indicative of a huge slowdown in the economy

(Zerohedge)

iii) Important USA Economic Stories

a)Due to the poor harvest season, the USA is experiencing shortages of many canned vegetable items.

(Michael Snyder)

b)This ought to get people angry:  Boeing is setting aside 144,000 per ife taken on those two Boeing 737 Max crashes

(zerohedge)

iv) Swamp commentaries

i)Pelosi briefly banned from speaking in the house after calling Trump a “racist”

(zerohedge)

ii)Even while serving his 13 month sentence, Epstein was abusing young girls. It is alleged that he settled with his abused girls for millions.

(zerohedge)

iii)This is highly unusual:  Judge Emmett Sullivan is hauling in Michael Flynn’s former lawyers into court and they are being accused of withholding case files

(zerohedge)

v) King report/Courtesy of Chris Powell of GATA which includes the major swamp stories.

 

 

LET US BEGIN:

 

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A CONSIDERABLE SIZED 5472 CONTRACTS TO A LEVEL OF 601,900 DESPITE THE SMALL LOSS OF $2.15 IN GOLD PRICING WITH RESPECT TO YESTERDAY’S // COMEX TRADING)

WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF JULY..  THE CME REPORTS THAT THE BANKERS ISSUED STRONG SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 5676 EFP CONTRACTS WERE ISSUED:

 FOR AUGUST; 5676 CONTRACTS: DEC: 0   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  5676 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: 204 TOTAL CONTRACTS IN THAT 5676 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A CONSIDERABLE SIZED 5472 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 ::  204 CONTRACTS OR 20400 OZ OR 0.6345 TONNES.

 

We are now in the NON  active contract month of JULY and here the open interest stands at 17 CONTRACTS as we lost 13 contracts.  We had 19 notices filed yesterday so we surprisingly again  gained  6 contracts or 600 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 again witness queue jumping in the comex gold arena. The next big active month for deliverable gold is August and here the OI FELL by a 11,277 contracts DOWN to 317,778. The next non active month is September and here the OI rose by 11 contracts up to 673.  The next active delivery month is October and here the OI rose by 1289 contracts up to 21,867.

 

 

 

TODAY’S NOTICES FILED:

WE HAD 6 NOTICES FILED TODAY AT THE COMEX FOR  600 OZ. (0.0186 TONNES)

 

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And now for the wild silver comex results.

Total COMEX silver OI ROSE BY AN ATMOSPHERIC AND CRIMINALLY SIZED 9372 CONTRACTS FROM 220,093 UP TO 229,465 (AND CLOSER TO THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S CONSIDERABLE  OI COMEX GAIN OCCURRED WITH A 31 CENT GAIN IN PRICING.//YESTERDAY.

 

 

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF JULY.  HERE WE HAVE 414 OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 106 CONTRACTS.  WE HAD 122 NOTICES FILED YESTERDAY SO WE GAINED BACK 16 CONTRACTS OR AN ADDITIONAL 80,000 OZ OF SILVER WILL STAND AT THE COMEX…. AND THESE GUYS REFUSED TO MORPH INTO A LONDON BASED FORWARD AS WELL AS NEGATING A FIAT BONUS. LET US WAIT AND SEE IF THEY ARE 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 16 CONTRACTS UP TO 1150.  THE NEXT BIG ACTIVE DELIVERY MONTH AFTER AUGUST IS SEPT AND HERE THE OI ROSE BY 8441 CONTRACTS UP TO 159,979 CONTRACTS.

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 23 notice(s) filed for 115,000 OZ for the JULY, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY: 356,523  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  364,244  contracts

 

 

 

 

 

INITIAL standings for  JULY/GOLD

JULY 17/2019

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  

50,299.680 oz

scotia

 

No of oz served (contracts) today
6 notice(s)
 600 OZ
(0.0186 TONNES)
No of oz to be served (notices)
11 contracts
(1100 oz)
0.0342 TONNES
Total monthly oz gold served (contracts) so far this month
864 notices
86400 OZ
2.6874 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 1 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into Scotia: 50,299.680  oz

 

 

 

total gold deposits: nil  oz

 

very little gold arrives from outside/ a good amount  arrived   today

we had 0 gold withdrawal from the customer account:

 

 

total gold withdrawals; nil  oz

 

 

i) we had 0 adjustment today

FOR THE JULY 2019 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 6 contract(s) of which 1 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
To calculate the INITIAL total number of gold ounces standing for the JULY /2019. contract month, we take the total number of notices filed so far for the month (864) x 100 oz , to which we add the difference between the open interest for the front month of  JULY. (17 contract) minus the number of notices served upon today (6 x 100 oz per contract) equals 87,500 OZ OR 2.7216 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 (864 x 100 oz)  + (17)OI for the front month minus the number of notices served upon today (6 x 100 oz )which equals 86,900 oz standing OR 2.7216 TONNES in this NON  active delivery month of JULY.

We GAINED 6 contracts or an additional 600 oz will stand as these guys refused to morph into London based forwards as well as negating a fiat bonus.

 

 

 

 

 

SURPRISINGLY LITTLE TO NO  GOLD HAS BEEN ENTERING THE COMEX VAULTS AND WE HAVE WITNESSED THIS FOR THE PAST YEAR!!  WE HAVE ONLY 10.0438 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 2.7216  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;   7,746,900.529 oz 240.96 tonnes

IN THE LAST 33 MONTHS 115 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 17 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 639,559.879 oz
Int = Delaware
Loomis
HSBC

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
nil oz
No of oz served today (contracts)
23
CONTRACT(S)
(115,000 OZ)
No of oz to be served (notices)
391 contracts
 1,955,000 oz)
Total monthly oz silver served (contracts) 3786 contracts

18,930,000 oz)

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

 

 

we had 0 inventory movement at the dealer side of things

 

 

 

total dealer deposits: nil  oz

total dealer withdrawals: nil oz

we had  0 deposits into the customer account

into JPMorgan:  nil  oz

ii)into everybody else:  0 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:  0  oz

 

we had 3 withdrawals out of the customer account:

 

 

i) Out of Int. Del: 9,739.489 oz

ii) Out of HSBC:  508,936.070 oz

iii) out of Loomis: 120,884.320 oz

 

 

 

 

 

total 639,559.879  oz

 

we had 0 adjustments :

 

 

 

total dealer silver:  92.592 million

total dealer + customer silver:  306.599 million oz

 

 

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 23 notice(s) filed for 115,000 OZ for the JULY, 2019 COMEX contract for silver

 

The total number of notices filed today for the JULY 2019. contract month is represented by 23 contract(s) FOR 115,000 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 3786 x 5,000 oz = 18,930,000 oz to which we add the difference between the open interest for the front month of JULY. (414) and the number of notices served upon today (23 x 5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JULY/2019 contract month: 3786 (notices served so far) x 5000 oz + OI for front month of JULY (414) number of notices served upon today (23)x 5000 oz equals 20,885,000 oz of silver standing for the JULY contract month.

WE GAINED 16 CONTRACTS OR AN ADDITIONAL 80,000 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. 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 23 notice(s) filed for 115,000 OZ for the JULY, 2019 COMEX contract for silver

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  106,541 CONTRACTS (we had considerable spreading activity..accumulation

 

CONFIRMED VOLUME FOR YESTERDAY: 136,135 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 136,135 CONTRACTS EQUATES to 680 million  OZ 97.2% 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

 

 

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NPV for Sprott 

1. Sprott silver fund (PSLV): NAV FALLS TO -1.59% ((JULY 17/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.68% to NAV (JULY 17/2019 )
Note: Sprott silver trust back into NEGATIVE territory at -1.59%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 1.408 TRADING 13.55/DISCOUNT 3.75

END

And now the Gold inventory at the GLD/

JULY 17/WITH GOLD UP $11.35 TODAY: A BIG WITHDRAWAL OF 1.17 TONNES FROM THE GLD//INVENTORY RESTS AT 799.37 TONNES

JULY 16: WITH GOLD DOWN $2.15 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 800.54 TONNES

JULY 15: WITH GOLD UP $1.85 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 800.54 TONNES

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

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

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

JULY 17/2019/ Inventory rests tonight at 799.37 tonnes

*IN LAST 625 TRADING DAYS: 135.39 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 525 TRADING DAYS: A NET 30.29 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

 

end

 

Now the SLV Inventory/

JULY 17: WITH SILVER UP ANOTHER 29 CENTS: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 8.518 MILLION OZ/INTO THE SLV INVENTORY///INVENTORY RESTS AT 341.036 MILLION OZ//

JULY 16: WITH SILVER UP 31 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.518 MILLION OZ

JULY: 15  WITH SILVER UP 11 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 332.518 MILLION OZ

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//

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

JULY 17/2019:

 

 

Inventory 341.036 MILLION OZ

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 2.26/ and libor 6 month duration 2.21

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

G0LD LENDING RATE: – .05

 

XXXXXXXX

12 Month MM GOFO
+ 2.19%

LIBOR FOR 12 MONTH DURATION: 2.21

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.02

end

 

 

end

 

PHYSICAL GOLD/SILVER STORIES

 

 

 

end
i) GOLDCORE BLOG/Mark O’Byrne

Europe Circumvents U.S. Sanctions On Iran

Europe has found a way of circumventing U.S. sanctions on Iran. The governments of France, Germany and the United Kingdom have developed a special purpose vehicle (SPV) to enable European businesses to maintain non-dollar trade with Iran without breaking U.S. sanctions. That SPV, known as INSTEX, is now up and running.

The three governments announced the successful implementation of INSTEX at a meeting of the Joint Commission of the Joint Comprehensive Plan of Action (JCPOA) on June 28, 2019. The meeting was chaired on behalf of the EU by the Secretary General of the European External Action Service (EEAS), Helga Schmid, and was attended by representatives of China, France, Germany, Russia, the United Kingdom, and Iran.

The fact that INSTEX’s implementation went ahead despite President Trump imposing additional sanctions on Iran shows how little support there is in Europe for the U.S. administration’s belligerence. If INSTEX also succeeds in attracting major third countries such as China, the U.S. may find itself increasingly isolated. This could call into question not only the relationship between the U.S. and its allies, but also the U.S.’s power in the world.

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


Gold Prices End Lower; Silver Rallies to Highest Finish Since February

Gold Eases as Robust U.S. Data Trims Aggressive Rate Cut Hopes

As Fed Nears Rate Cut, Policymakers Debate How Deep, and Even if

Could A Deutsche Bank Collapse Crash The Markets?

Bank Run: Deutsche Bank Clients Are Pulling $1 Billion A Day

Boris Johnson’s New Plan Would Sideline Parliament And Guarantee A ‘No Deal’ Brexit

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

16-Jul-19 1416.10 1409.85, 1136.85 1134.79 & 1260.05 1256.88
15-Jul-19 1416.25 1412.40, 1127.76 1127.24 & 1255.93 1253.79
12-Jul-19 1405.60 1407.60, 1122.23 1122.14 & 1248.74 1251.50
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

Watch Video Here

Click here for GoldCore’s You Tube Channel

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Mark O’Byrne
Executive Director
end

ii) Important gold commentaries courtesy of GATA/Chris Powell

For your interest, a gigantic one tonne gold coin has made its way to Wall Street

(courtesy Loder./WallStreet Journal/GATA)

A gigantic gold coin makes its way to Wall Street

 Section: 

By Asjyiyn Loder
The Wall Street Journal
Tuesday, July 16, 2019

Richard Hayes plans to leave a $45 million coin on the streets of Manhattan all day today, but he isn’t particularly worried about a thief carting it off.

The coin — with Queen Elizabeth’s profile pressed onto one side and a mid-hop kangaroo on the other — is beyond the wiles of the average pickpocket. It measures nearly 32 inches in diameter and is almost 5 inches thick.

… 

Oh, and it weighs about 2,200 pounds. (That is more than 32,000 troy ounces, for the precious-metals buffs out there.)

Mr. Hayes is the chief executive of the Perth Mint, one of the world’s largest gold refiners. He flew to the U.S. from Australia with the world’s largest gold coin in tow, on a publicity tour for his exchange-traded fund.

What people don’t understand about gold, Mr. Hayes says, is how much it weighs—probably because Hollywood gets it so wrong. A cubic foot of iron weighs about 491 pounds. The same volume of gold tips the scales at 1,206 pounds. …

… For the remainder of the report:

https://www.wsj.com/articles/a-gigantic-gold-coin-makes-its-way-to-wall-…

END

We brought this to your attention yesterday but it is worth repeating..China has reduced its uSA holdings again amid the trade war escalation  It is now down to 1.11 trillion uSA dollars.

(zerohedge)

China’s Treasury holdings extend drop amid trade war escalation

 Section: 

By Sarah McGregor and Katherine Gdreifeld
Bloomberg News
Tuesday, July 16, 2019

China’s holdings of U.S. Treasuries dipped in May to the lowest in two years amid an escalation of the trade war between the world’s two largest economies.

The Asian nation’s pile of notes, bills, and bonds fell by $2.8 billion to $1.11 trillion, according to Treasury Department data released Tuesday in Washington. It was the third straight month of declines and left China’s holdings the smallest since May 2017.

… 

China remained the U.S.’s biggest foreign creditor. Japan was next, with $1.1 trillion, up by $37 billion from a month earlier, which was the biggest gain since 2013. The $9.2 billion gap between the two nations’ holdings was also the smallest since Japan was last the largest U.S. foreign creditor two years ago. …

https://www.bloomberg.com/news/articles/2019-07-16/china-s-treasury-hold…

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iii) Other physical stories:

Tom Luongo tackles gold.  He assumes China has only 4,000 tonnes. I believe that they have accumulated gold for over 25 years and have amassed something like 20-25,000 tonnes.  This would make Tom’s point mute.

a good read…

(Tom Luongo)

 

Will The Multi-Polar World Be Backed By Gold?

Authored by Tom Luongo,

It’s not news that China and Russia have been buying gold by the hundreds of tonnes. It’s not news that Russia divested itself of most of its U.S. Treasury holdings last year in response to Donald Trump’s sanctions on Rusal, upsetting the global Aluminum market.

Russia has led the charge on central bank gold buying, having increased its official holdings from 400.3 tonnes in Q1 of 2007 to 2168.3 tonnes as of the end of Q1 2019. That’s a 442% increase in gold reserves.

 

China, on the other hand, has only in the past couple of years joined Russia’s party of announcing its gold buying on a monthly basis. Previously, China would simply drop a 500-600 tonne bomb on the markets and see what would shake out of it.

Now, few people who follow this stuff believe China’s government only owns 1916.3 tonnes of gold. Estimates range from 4000 to 6000 tonnes. Like Russia, very little of China’s domestic production of gold (404 tonnes in 2018) leaves China and makes its way into the global market.

It is mostly absorbed by the Chinese population via purchases off the Shanghai Gold Exchange (SGE). And the PBoC itself uses Chinese banks as proxies to buy its gold overseas from the U.K., Singapore and Switzerland.

Russia’s gold buying consumes most, and sometimes all, of Russia’s domestic production (297 tonnes in 2017). The same is true for Kazakhstan (68.4 tonnes) and a few other countries.

It’s easy when looking at these trends to see that something big may be on the horizon, that gold is on the verge of being re-monetized and a major shakeup to the world financial system is imminent.

That the multi-polar world is here. It’s not, but it’s coming.

The boys at The Duran had a fascinating (if a bit forward-looking) video recently where they discuss the situation brewing between the U.S. and China.

The basic thesis is that the U.S. and China are headed for a mostly amicable divorce of their economies, a disentangling as it were. And that that would then allow for the emergence of the so-called multi-polar world that both Russian President Vladimir Putin and Chinese Premier Xi Jinping are working towards.

On this point I don’t disagree. It’s a strong point Alex Mercouris makes here that the U.S. and China have acknowledged their growing contention in the global economy but that there is no need for a completely antagonistic relationship.

The U.S. doesn’t have to extend the unipolar moment into infinity to ‘win’ this ‘war’ with China. That is globalist thinking, maximalism to the extreme.

The U.S. and China can, strategically, disengage from each other while cultivating different paths for their futures. And this is the essence of the phrase ‘multi-polar.’ If that is Trump’s vision on this that is an improvement over the globalist Davos Crowd perspective so entrenched in Europe, which brooks no dissent from its Borg-like behavior.

It’s neither optimal nor likely but it sets a tone that will shift the future outcomes in the right direction. To do this Trump has to win re-election and be successful in confronting the Swamp via Jeffrey Epstein like I believe he’s doing.

However, and this is the bigger point coming back to gold, I do think Russia and China setting up their part of the multi-polar world based on a gold standard similar to Bretton-Woods is not workable.

There are a number of reasons for this but the main one is that Bretton-Woods never worked in the first place. The discipline of the reserve currency nation, the U.S., was never in observed. We violated the terms of the $35/ounce gold peg immediately.

First, by selling off the greatest hoard of silver ever amassed and then by simply printing the money during the Johnson and Nixon Administrations. It is insane to think that Russia and/or China will for any length of time exhibit any real fiscal discipline that would allow for a Bretton-Woods-style currency regime to work.

This is libertarian critique 101, folks. Just because the U.S. can’t keep its hand out of the cookie jar, doesn’t mean Russia post-Putin will. And the less said about the Chinese shadow banking bubble the better.

Moreover, the U.S. and the EU still have their gold reserves. Even if some or all of it has been lent out to suppress the price at times. I don’t believe that’s been the case since China opened up the Shanghai Gold Exchange and Russia began accumulating in earnest.

That would have put explosive upward pressure on the price of gold as thousands of tonnes would have had to be sourced to settle those positions. Instead, the U.S. and the EU were likely allowed to unwind any short positions over time which allowed years of annual production to flow east.

And this is the fundamental problem of a government-backed gold standard. It will not ever last. Governments create market interventions which have to be paid for via money printing or debt. And both of those things belie the discipline of the gold standard.

There is an infinite gap between the intention of China and Russia to build a multi-polar global financial system between East and West and the re-emergence of a gold-backed currency regime.

Because, for a moment, let’s get real about who owns what gold.

On the West side of the world we have the U.S., EU, BIS, the IMF and the Gulf states.

On the other side we have the central banks in the Russia/China orbit who are currently accumulating gold or are becoming independent actors on the world stage. It’s a bigger list than in the past twenty years, but that list is still small (The BRI Bloc (as defined by me herein) consists of the following countries: Russia, China, India, Iran, Iraq, Turkey, Qatar, Belarus, Uzbekistan, Tajikistan, Kyrgyzstan, Kazakhstan, Thailand, Malaysia, Serbia and Brazil).

Going through World Gold Council numbers for Q1 2019 we get the following numbers. Just over 7000 tonnes of gold for what I’m calling Eastern BRI Bloc, those countries that are both accumulating gold in their reserves and are important partners in China’s Belt and Road Initiative (BRI). It’s impressive that they have added more than 3000 tonnes over the past six-plus years.

Total Belt + Road Bloc Gold Holdings Still Dwarfed by U.S. Reserves.

However, that’s still less than the U.S.’s 8133.5 tonnes let alone the more than 10,000 tonnes that make up the reserves of the European Union countries and doesn’t include the 2814 tonnes owned by the IMF, the 504 tonnes owned by the ECB itself or the 102 tonnes owned by the Bank of International Settlements.

For any discussion of this bloc challenging the reserve status of the U.S. and European systems, There would have to be at least another 6000 tonnes available between China and Russia that are not on their official books to even being to make that argument look realistic.

Let’s use M1 money supply figures for a proxy of what gold backing would look like, just to get a lay of the land.

For all of the talk of the U.S.’s imminent bankruptcy, the gold reserves at current prices make up 9.6% of M1 at current prices ($1415/oz). China’s official gold reserves make up just 1.0% of M1. Even if you believe the upper end of China’s estimated real gold holdings it’s still only 3.3% of M1.

If you count the estimated 16,000 tonnes held privately in China and that was convertible into currency that would still only get China up to 12.2% backing of M1 with gold.

Russia is the closest there is to a gold-backed currency there is. The ruble by that metric (M1) 84.0% backed by Russia’s official gold reserves.

That is an eye-popping number and it tells you that the Russians have very prudently saved over the past fifteen years or so. They have built what we Austrian economists like to call a ‘pool of real savings’ to lever into higher order investments.

Russia is now ready to deploy a significant part of its trade surplus and even some of its pool of real savings to build new and needed infrastructure for Russia. Putin mentioned in his annual 4-hour direct line that he was ready to begin spending some of Russia’s oil revenues, drifting away from neoliberal and monetarist Alexei Kudrin and towards the nationalist/Keynesian Sergei Glazyev.

Given the state of Russia’s finances and a 10+ billion per month trade surplus, this is a no-brainer really. It’s their down-payment on the multi-polar world.

And it marks a specific shift in attitude which will assist China in building out Belt and Road but it will do nothing to allow for a return to any kind of gold standard until China gets its financial house in order.

To sum up, what killed Bretton-Woods was the same thing that killed the British pound post-WWI, a refusal to price gold accurately by the governments printing the money. Britain could have kept the gold standard and more of its empire had it re-valued the pound to reflect the money supply in 1918.

It didn’t and it destroyed the British post-war economy. The same thing is happening now. And the U.S. will either have to allow the world’s assets to plunge by 50-90% or allow the price of gold to rise to reflect the amount of money in circulation.

Given the numbers I just laid out that should give you an idea of just how much higher gold has to go to balance the books of the world. And no one in power, other than the Russians, are prepared for that kind of event.

Because until that happens there is no incentive for gold to circulate as money, or the discipline of the gold standard to be observed.

What China is doing, like Russia and the rest of the BRI Bloc, is they are building gold reserves to build the confidence of the world for the day when trust in the Western system fails. By having significant gold ‘backing’ but without convertibility those countries today adding to their rainy day funds will be the places capital will flow towards to avoid the whirlwind.

That is when the multi-polar world can be inaugurated.

*  *  *

END

Why Judy Shelton, a gold bug would be great as a Fed Governor

(Mark Hendrickson/EpochTimes)

In Support Of Judy Shelton’s Nomination To The Fed

Authored by Mark Hendrickson via The Epoch Times,

With President Donald Trump’s two previous nominees to the Federal Reserve Board of Governors – Stephen Moore and Herman Cain – having withdrawn in the face of stiff resistance in the Senate, the president has nominated two economists – Judy Shelton and Christopher Waller – to those posts.

Waller’s nomination seems safe. He’s an insider, the current executive vice president of the Federal Reserve Bank of St. Louis.

 

Shelton, on the other hand, is encountering some resistance because she’s an unconventional choice. Her opponents condescendingly scorn her as a “goldbug,” because of her minority viewpoint that the dollar should be backed by gold.

Greg Ip, the erudite economics writer for The Wall Street Journal, questioned whether Shelton is suitable for the position in his most recent column. (It should be noted that the Journal’s editorial page unhesitatingly supports her nomination.) Monetary policy and its political ramifications are incredibly complex, far from an exact science, and people of goodwill can disagree strongly about them. Let me say that while Ip makes some valid points, he’s off target on others, and so I disagree with the doubts he raises about Shelton’s nomination.

Ip diplomatically starts off with two balancing statements, the first true (in certain contexts), the second an indisputable truism:

“Mainstream economists consider the gold standard … impractical—and dangerous,” and

“Mainstream economists have no monopoly on truth.”

Is a gold standard “impractical”? Yes, it is today, but it shouldn’t be. A gold standard is unsustainable, thus impractical, in a country such as ours where the government doesn’t control spending and balance its budget. Gold is “honest” money. Is it “dangerous”? Yes, but only to power structures that depend on fiat money (i.e., money unbacked by anything of real nonmonetary value) for their perpetuation.

One reason why Shelton favors a gold standard is that it has a virtue that Ip acknowledged in his article:

“When all countries were on gold, it made exchange rates stable and predictable.”

Indeed, a multinational gold regime facilitates free and fair trade—a Trump policy goal that most politicians at least pay lip service to. Contrariwise, spasmodic exchange rate fluctuations complicate and undermine free trade.

The problem is that politicians both here and abroad want the benefits of a gold standard without having to submit to the discipline on government spending that gold imposes.

At the midpoint, Ip’s article becomes problematical. He writes, “To goldbugs … the gold standard’s main appeal is ideological.” Why “ideological”? Aren’t ideologies belief systems that people cling to even when confronted by overwhelming evidence that what they crave doesn’t work as advertised (see “socialism”)? Advocates of a gold standard do so for reasons of benevolence. They want a currency that’ll hold its purchasing power and that makes it harder for government to absorb and commandeer private functions through the printing press. The monetary ideologues today are those who advocate fiat currencies that transfer economic power from Main Street to the governing elite.

Ip chides Shelton for having “accused the Fed of printing money to finance Mr. Obama’s deficits.” That sounds like a fairly accurate accusation to me.

We can debate whether the various rounds of quantitative easing (QE) financed the Obama deficits directly, but the Fed’s ZIRP (zero interest rate policy) certainly did make it easier for President Barack Obama to run immense deficits. The Fed enabled Uncle Sam to “tote the notes” of federal debt more easily by driving down its annual interest expense. Concurrently, ZIRP deprived millions of American savers of the ability to earn modest, safe returns on their savings at banks. In essence, under ZIRP economic power shifted to Washington and its Wall Street auxiliaries at the expense of the U.S. middle class.

As for Shelton’s 2011 declaration that inflation would “inevitably result” from the Fed’s money creation, she appears to have been wrong in the short term, but may prove to be tragically correct in the long term.

To explain: In the short term, prices didn’t rise much in response to the Fed’s money printing. OK, so Shelton doesn’t have a crystal ball. Nobody does. Recall that former Fed Chairman Ben Bernanke famously stated, circa 2007, that the housing market wouldn’t have a significant impact on the economy—only to have the housing bubble burst and trigger a financial crisis that became the Great Recession.

We’re all learning about the effects of various Fed policies as we go. We can see now in retrospect that the Fed’s policy of paying banks to hold excess reserves rather than lend those funds out to finance private-sector economic activity (a policy that Shelton has openly criticized) restrained consumer prices, even as government spending soared—another way in which economic power was siphoned from the private sector to the public sector.

In the long term, though, it’s possible that the chickens of the multi-trillion expansion of the Fed’s balance sheet during the QE years will ultimately come home to roost in dollar depreciation. Then, the dollar may lose its status as the global reserve currency and domestic prices might soar. Let’s all hope it doesn’t, but we need people on the Federal Reserve Board who, like Shelton, want to avoid a return to the destructive inflation of the 1970s.

I agree with Ip that Shelton appears to be somewhat partisan. He also writes, though, that the Fed “prides itself on political independence.”

Does anybody really believe that the Fed is above partisan politics? After pursuing ZIRP-like policies to the very end of the Obama presidency before finally starting to raise rates shortly after Trump became president, how can anyone believe that the Fed is free of partisan sympathies?

Another example: Janet Yellen displayed her partisanship for all to see by using her authority as Fed chair to try to persuade economists to jump on board the progressives’ climate change agenda and urge Congress to pass a tax increase (i.e., a carbon tax).That was totally inappropriate, and is a sure sign that a fresh voice such as Shelton’s should be added to the board of governors.

Shelton is 100 percent correct when she questions why a dozen people (the Federal Reserve Board of Governors) should set the prices of capital (interest rates) any more than they should set the price of cars, houses, or bubble gum.

Markets can do that and do it better—as they did before there even was a Federal Reserve system. Shelton opposes policies that would be more at home in a centrally planned economy. That alone is reason enough to confirm her.

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 6.8771/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.8794   /shanghai bourse CLOSED DOWN 5.92 POINTS OR 0.20%

HANG SANG CLOSED DOWN 26.45 POINTS OR 0.09%

 

2. Nikkei closed DOWN 66.07 POINTS OR 0.31%

 

 

 

 

3. Europe stocks OPENED ALL RED

 

 

 

USA dollar index UP TO 97.30/Euro RISES TO 1.1219

3b Japan 10 year bond yield: FALLS TO. –.12/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.26/ 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:: 57.98 and Brent: 64.92

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.29%/Italian 10 yr bond yield DOWN to 1.57% /SPAIN 10 YR BOND YIELD DOWN TO 0.44%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.86: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield RISES TO : 2.28

3k Gold at $1403.90 silver at: 15.64   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 24/100 in roubles/dollar) 62.77

3m oil into the 57 dollar handle for WTI and 64 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 108.26 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 .9893 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.1099 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

3p BRITAIN VOTES AFFIRMATIVE BREXIT/LOWER PARLIAMENT APPROVES BREXIT COMMENCEMENT/ARTICLE 50 COMMENCES MARCH 29/2017

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.29%

The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. Next step for Greece will be the recapitalization of the banks and that will be difficult.

4. USA 10 year treasury bond at 2.09% early this morning. Thirty year rate at 2.61%

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

6.  TURKISH LIRA:  UP  TO 5.6872..

Global Rally Fizzles As Bank Earnings Muzzle Low-Volume Euphoria

S&P futures pared gains, and traded unchanged as mixed Q2 earnings and disappointing hints by banks on future revenue gave traders concerns about the sustainability of the rally, while European stocks struggled for traction amid fresh trade tensions.

US equity futures gave up some of their earlier (low-volume) gains after Bank of America’s net interest income fell short of analysts’ expectations, though CEO Brian Moynihan said the economy appeared to be improving. The Stoxx Europe 600 index nudged higher amid a mixed bag of reports from companies including Swatch, Ericsson and ASML. In the US, earnings from the big banks JPMorgan, Citigroup and Wells Fargo this week have raised concerns that lower interest rates will pressure profits at a time when revenue growth is already slow.

Adding some nervousness to markets was a threat from U.S. President Donald Trump to tax another $325 billion worth of Chinese goods. And in the latest evidence that trade tensions were hurting businesses, railroad CSX reported a quarterly profit that missed estimates and lowered its full-year revenue forecast, sending its shares 7.2% lower. Also worth noting, on Tuesday more dovish comments from Federal Reserve Chairman Jerome Powell did little to stir markets, suggesting easing may be fully priced in as Bloomberg points out.

Meanwhile, in Europe, strong quarterly profit from Dutch chip equipment maker ASML helped semiconductor makers  including Advanced Micro Devices, Micron Technology, Intel and Applied Materials rise between 0.4% and 1.6%. Qualcomm jumped 5.6% after the U.S. Justice Department asked a federal appeals court to pause the enforcement of a sweeping antitrust ruling against the mobile chip supplier.

Earlier in the session, Asian stocks slipped for a second day, with South Korean shares leading declines amid regional and global trade tensions. Technology and energy were among the weakest sectors after U.S. President Donald Trump reiterated that he could impose additional tariffs on Chinese imports if he wants. Most markets in the region dropped, while Australia bucked the trend with the S&P/ASX 200 gauge up 0.5%, supported by BHP Group after the miner forecast iron ore production will rise as much as 6% this fiscal year. China’s Shanghai Composite Index fell as large financial companies led losses. The Kospi retreated 0.9%, dragged by Samsung Electronics and SK Hynix, while the Topix closed 0.1% lower. India’s Sensex added 0.2%, with Kotak Mahindra Bank and Infosys among the biggest boosts, as investors awaited more corporate earnings.

In FX, the dollar halted a two-day rally, held down by gains in commodity currencies, with the Canadian dollar rallying ahead of inflation data. Even so, it held near its strongest level in a week as traders awaited economic data and speeches by Federal Reserve officials in coming days for clues about the size of expected interest-rate cuts this year. The pound traded near the lowest levels since April 2017 as the risk of a no-deal Brexit continued to preoccupy investors.

Elsewhere, Bitcoin extended a slide below $10,000.

 

In commodities, WTI and Brent futures are nursing some of yesterday’s losses after prices slid around 3% on comments from the US which suggested a tempering of US-Iran tensions, albeit this was later rebutted by Iran. Upside for the complex has been limited by a number of supply-side factors including the narrower-than-expected drawdown in API crude stocks (-1.4mln vs. Exp. -2.7mln).  Furthermore, refineries in the Gulf are restarting operations post-storm Barry, with only 59% of production still offline (vs. 69% on Monday).

Elsewhere, gold prices are gravitating closer to the key 1400/oz mark as the Dollar index gains more ground above 97.00. Meanwhile, Dalian iron ore futures have retreated from recent record highs as investors digested news about higher transaction fees in all iron ore futures contracts on the DCE alongside a rise in iron ore shipments to China from Australia.

Expected data include housing starts and building permits. Abbott, Bank of America, IBM, and Netflix are among companies reporting earnings.

Market Snapshot

  • S&P 500 futures up 0.1% to 3,011.00
  • STOXX Europe 600 down 0.01% to 389.06
  • MXAP down 0.2% to 160.30
  • MXAPJ down 0.3% to 527.76
  • Nikkei down 0.3% to 21,469.18
  • Topix down 0.08% to 1,567.41
  • Hang Seng Index down 0.09% to 28,593.17
  • Shanghai Composite down 0.2% to 2,931.69
  • Sensex up 0.2% to 39,201.86
  • Australia S&P/ASX 200 up 0.5% to 6,673.26
  • Kospi down 0.9% to 2,072.92
  • German 10Y yield fell 2.7 bps to -0.271%
  • Euro up 0.02% to $1.1213
  • Italian 10Y yield fell 3.5 bps to 1.259%
  • Spanish 10Y yield fell 3.2 bps to 0.459%
  • Brent futures up 0.7% to $64.81/bbl
  • Gold spot down 0.3% to $1,402.29
  • U.S. Dollar Index little changed at 97.35

Top Overnight News from Bloomberg

  • President Donald Trump reiterated that he could impose additional tariffs on Chinese imports if he wants, after promising to hold off on more duties in a trade-war truce he reached with China’s Xi Jinping last month
  • European car registrations fell sharply in June, resuming a downward spiral this year that has seen profit warnings at German manufacturer Daimler AG and a quarterly automotive division loss at rival BMW AG.
  • Hong Kong is beginning to reckon with the economic cost of ongoing protests against the government’s extradition bill, as the disruption risks driving away local shoppers and deterring tourists from mainland China.
  • President Donald Trump reiterated that he could impose additional tariffs on Chinese imports if he wants, after promising to hold off on more duties in a trade-war truce he reached with China’s Xi Jinping last month.
  • Fed Chairman Jerome Powell said the central bank is “carefully monitoring” downside risks to U.S. growth and “will act as appropriate to sustain the expansion,” reiterating concerns last week that cemented expectations for an interest-rate cut later this month
  • The next leader of the European Commission, Ursula von der Leyen, said she hopes to dissuade President Trump from imposing tariffs on EU cars by reminding him of all the areas where European and American interests coincide
  • A lawyer who won a landmark ruling that allows the U.K. to reverse Brexit is considering what could be one of several lawsuits seeking to block any attempt to suspend Parliament to force through a no-deal departure from the bloc
  • The U.S. and Japan are working on a small trade deal that would involve agriculture and autos, Reuters reported citing three unidentified industry sources familiar with the talks
  • China’s holdings of U.S. Treasuries dipped in May to the lowest in two years amid an escalation of the trade war between the world’s two largest economies. The Asian nation’s pile of notes, bills and bonds fell by $2.8b to $1.11t, according to Treasury Department data released Tuesday in Washington
  • House Speaker Nancy Pelosi said she sees “forward motion” after yet more talks with Treasury Secretary Steven Mnuchin to negotiate higher spending levels in a budget deal that congressional leaders want to attach to a bill raising the debt limit before Congress’s August recess
  • Japan’s long-term foreign currency debt rating was affirmed by Fitch at A because of the nation’s advanced and wealthy economy, high governance standards and strong public institutions
  • Oil held its biggest loss in two weeks as President Trump’s threat of new tariffs on Chinese imports rekindled fears about global demand, while the U.S. signaled a possible easing of tensions with Iran

Asian equity markets traded mostly lower as the region followed suit from the lacklustre performance on Wall Stwhere all major indices pulled back from record levels as participants digested the first bout of blue-chip earnings and with risk sentiment also pressured after comments from US President Trump added to the doubts for a near-term breakthrough with China. This weighed on the regional indices from the open although the ASX 200 (+0.5%) quickly bucked the trend with upside in defensive sectors and miners leading the turnaround including BHP which gained after it topped production estimates despite output declining Y/Y, although the energy sector underperformed after crude prices slipped around 3%. Nikkei 225 (-0.3%) and KOSPI (-0.9%) weakened as the soured Japan-South Korea relations and ongoing trade dispute continued to take its toll, while Hang Seng (-0.1%) and Shanghai Comp. (-0.2%) conformed to the glum after US President Trump suggested there is a long way to go regarding trade with China and that the US can put tariffs on another USD 325bln of goods if it wants. Furthermore, China made a hawkish addition to its trade team indicating that it is in no hurry to wrap up trade discussions, although pressure in the mainland was limited after the PBoC conducted a consecutive substantial liquidity injection. Finally, 10yr JGBs were subdued as prices initially ignored the upside in T-notes and weakness in stocks ahead of a 20yr JGB auction, which proved to be mixed but still showed a higher b/c to provide marginal support in late trade.

Top Asian News

  • Hong Kong Protests Have City’s Residents Plotting Their Exit
  • Morgan Stanley Revises Call on Turkey Rate, Sees Bigger July Cut
  • Shining Star of Mideast Stock Markets Seen Losing Sparkle
  • India Shadow Bank Said to Discuss Rescue Plan With Bondholder

A muted session thus far for European equities [Eurostoxx 50 Unch] as the region has derived little inspiration from a mixed Asia-Pac handover. Sectors are mixed with clear underperformance seen in the Energy sector following yesterday’s decline in oil prices, whilst defensive sectors are kept afloat by the somewhat cautious tone. Individual movers this morning have largely been driven by earnings. Swatch (+5.0%) rose to the top if the SMI as operating profits topped estimates and amid expectations of positive overall growth in FY 19. Likewise, ASML (+4.2%) rests near the top of the Stoxx 600 as the Co. beat on revenue forecasts and expects Q4 “to be very strong”. On the flip side, Ericsson (-4.9%) shares are pressured as the Co. expects negative impacts to increase in H2 this year. Finally, Swedbank (-5.8%) declined to the foot of the pan-European index as its firm earnings were overshadowed by shortcomings in regard to its money laundering investigation.

Top European News

  • Deutsche Bank’s Prime-Broker Deal Could Elevate BNP in Asia
  • Ericsson Ends Run of Earnings Beats With Asia Warning
  • Chip Gear Maker ASML Gets Boost From 5G Push Amid Memory Slump
  • Swedbank Slashes Dividend as Baltic Dirty-Money Probes Drag On
  • Swatch Climbs as Watchmaker Takes Aim Against Gray Market

In FX, Nzd/Usd has rebounded relatively firmly back above 0.6700 and is retesting the 200 DMA circa 0.6718 mainly due to the Greenback losing a bit of its retail sales momentum and the DXY fading just shy of 97.500, though the Kiwi may have gleaned some belated traction from yesterday’s rebound in GDT auction prices after the in line and firmer NZ CPI data for Q2 overnight. Similarly, Usd/Cad has retreated towards 1.3050 from close to 1.3100 as the Loonie eyes Canadian inflation data for independent impetus and draws some underlying support from firm crude prices in the run up.

  • CHF – Somewhat surprisingly perhaps, or at least unexpectedly, Usd/Chf and Eur/Chf are both firmer and nudging big figures at 0.9900 and 1.1100 respectively without any apparent rationale for Franc underperformance. However, following recent strength it would not be out of the realms of reality to point the finger at official intervention/rate checking or front-running the SNB.
  • EUR/JPY/AUD/GBP – All narrowly mixed vs the Usd, as the single currency clings on to the 1.1200 handle after a more concerted attempt to fill evidently substantial bids at the round number, albeit in no small part due to contagion from another bout of Sterling weakness as Cable tumbled further below 1.2400 and Eur/Gbp touched 0.9050. Note, however, Eur/Usd appears capped ahead of decent option expiries between 1.1250-55 (1.1 bn), just like Usd/Jpy within 108.12-32 given similar size expiry interest running off at 108.00 (1.5 bn) and 108.30 (1.1 bn) at the NY cut. Elsewhere, Aud/Usd has drifted back towards 0.7000 after topping out a few pips short of 0.7050 on Tuesday amidst less positive vibes on US-China trade prospects following President Trump’s latest tweets and tariff threats plus the appointment of a so called hawk to Beijing’s negotiating team. Back to the beleaguered Pound, no real reaction to largely in line UK inflation data, with the exception of PPI input prices that were considerably weaker than forecast.
  • EM – The Rand is a notable regional laggard, with Usd/Zar hovering near the top of a 14.0000-13.9500 range ahead of SA retail sales data at midday and the SARB meeting on Thursday when a rate cut is widely anticipated (-25 bp), while ongoing doubts about Eskom are also weighing on sentiment.

WTI and Brent futures are nursing some of yesterday’s losses after prices slid around 3% on comments from the US which suggested a tempering of US-Iran tensions, albeit this was later rebutted by Iran. Upside for the complex has been limited by a number of supply-side factors including the narrower-than-expected drawdown in API crude stocks (-1.4mln vs. Exp. -2.7mln).  Furthermore, refineries in the Gulf are restarting operations post-storm Barry, with only 59% of production still offline (vs. 69% on Monday). Elsewhere, gold prices are gravitating closer to the key 1400/oz mark as the Dollar index gains more ground above 97.00. Meanwhile, Dalian iron ore futures have retreated from recent record highs as investors digested news about higher transaction fees in all iron ore futures contracts on the DCE alongside a rise in iron ore shipments to China from Australia.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior -2.4%
  • 8:30am: Housing Starts, est. 1.26m, prior 1.27m; MoM, est. -0.71%, prior -0.9%
  • 8:30am: Building Permits, est. 1.3m, prior 1.29m; MoM, est. 0.08%, prior 0.3%
  • 2pm: U.S. Federal Reserve Releases Beige Book

DB’s Jim Reid concludes the overnight wrap

It might have been the 50th anniversary of Apollo 11 lifting off yesterday in what five days later followed with the first man landing on the Moon, however US equities failed to shoot for the moon as they retreated off their record highs. Indeed yesterday’s closing moves of -0.34% for the S&P 500, -0.09% for the DOW and -0.43% for the NASDAQ coincided with another fairly benign intraday range and also with summer-like trading volumes. There was actually a large volume of newsflow to digest, but it seemed like ultimately comments from President Trump outweighed everything else, with the market declining after he said that there’s “a long way to go as far as tariffs where China is concerned, if we want. We have another $325 billion we can put a tariff on.” Away from that, there was a bumper US retail sales report, a soft German ZEW survey, a selloff in oil prices, a mixed bag of US bank earnings reports, and a slew of Fedspeak.

Bond markets were a bit more exciting. Indeed, 10y Treasuries sold off as much as +5.2bps, boosted by the bumper US retail sales numbers with the 2s10s curve flattish following a similar move at the front end. However they ended only +1.4bps higher, off their highs, at 2.103% following dovish comments from Fed officials and a swoon in oil prices. WTI crude fell -3.29% in New York after US Secretary of State Pompeo suggested that Iran was willing to negotiate on its missile program. Positive progress could open the door to higher exports, and although Iranian sources subsequently denied the story, oil held its losses. The selloff in Treasuries also helped Bunds to finish flat on the day after rallying post the soft German ZEW survey number while the STOXX 600 ended +0.35% higher.

This morning Asia has followed Wall Street’s lead with little new newsflow to report, with the Nikkei (-0.40%), Hang Seng (-0.32%), Shanghai Comp (-0.05%) and the KOSPI (-0.92%) all trading lower. S&P futures have made a marginal gain however, up +0.06%.

Coming back to the US bank earnings yesterday, the highlights were strong results from Goldman Sachs (+1.86%) and JPMorgan (+1.04%). Both banks beat consensus profit estimates, with Goldman performing especially well in equity trading and investment banking. Wells Fargo (-3.02%) underperformed sharply though after reporting disappointing progress on costs. Somewhat worryingly for the sector as a whole, the three banks saw pressure on their net interest margins, which follows naturally from the recent fall in rates. The S&P 500 banks index retreated -0.52%.

As for the Fedspeak yesterday, the highlight on the calendar was undoubtedly a speech by Chair Powell in the early evening. However, his remarks were largely unchanged from his recent rhetoric, saying the Fed will “act as appropriate.” His only truly interesting comment was regarding the Fed’s ongoing policy review, providing the first calendar guidance for the results and saying the FOMC will devote time at regular FOMC meetings soon to discuss it, with a final result due in H1 next year.

Instead, remarks from Dallas President Kaplan and Chicago President Evans proved more impactful. The former said that he could support an “adjustment in the policy rate in light of market-determined rates,” which was a big shift from his recent stance against any cuts. That caused rates to ease off their highs, and the move was further supported by dovish comments from Evans who said that “we are little bit more restrictive than we need to be, and we need to be more accommodative.” He also weighed the arguments for and against an immediate 50bps cut, saying “if I think it takes 50bps before the end of the year to get inflation up then something right away would make that happen sooner.” So at least for him, a voting member this year, the door remains open for a 50bps cut. Right now the market prices around a one-in-four chance of a 50bps cut happening this month, with a 25bps cut fully priced.

Meanwhile in Europe, the European Parliament supported Ursula von der Leyen as the next President of the European Commission, with a majority of 383 MEPs voting in favour, narrowly above the absolute majority of 374 required. The appointment process isn’t yet finished however, as the other members of the Commission will need to be chosen, and the full college of Commissioners including the Commission President needs to win a parliamentary vote of approval, which will take place after the summer. Notable comments in von der Leyen’s remarks yesterday included her goal that she was seeking “the first climate-neutral continent in the world by 2050”, and on Brexit, she said that “I stand ready for a further extension of the withdrawal date should more time be required for a good reason.”

Elsewhere, just on the details of the June retail sales report in the US which as mentioned at the top revealed that ex-auto and gas sales rose +0.7% mom and therefore far exceeded expectations for a +0.3% mom rise. The control group component also rose +0.7% mom which helped push some of the oft-watched GDP trackers higher, including a 0.3pp uptick for the Atlanta Fed’s tracker to 1.6%. That includes an estimated 4.2% expansion in consumer spending, with the headline GDP figure predicted to be softer as a result of headwinds from inventories and trade. In fact, the annualized retail control reading for Q2 was 7.52% which was the highest quarterly print since Q4 2005, and the 6-month annualized rate was the highest-ever at 11.05%. The May control group reading was also revised up by one-tenth so a much rosier picture for the consumer compared to investment and supply data of late.

Indeed, in contrast the June industrial production reading was flat in June which compared to expectations for a +0.1% mom reading. However, in what is likely to please the Fed following comments by Powell about weakness in manufacturing output being a concern, the June manufacturing production print bettered expectations at +0.4% mom (vs. +0.3% expected).

As for the rest of the US data which was a bit more mixed, the import price index ex-petrol in June slid more than expected (-0.4% mom vs. -0.2% expected) while the NAHB housing market index rose 1pt in July to 65. Finally the May business inventories reading of +0.3% mom was in line.

Prior to this in Germany that July ZEW expectations survey reading of -24.5 was a 3.4pt decline from June and was also weaker than expected. It’s also back to testing the -24.7 low mark made in July and October last year. The good news is that the monthly drop was a lot more modest in comparison to the 19pt decline in June. What was interesting was the reference to the Iran conflict in the text as an additional concern alongside the now-standard mentions of Brexit and trade war risks.

There was better news for the data here in the UK where unemployment held steady in May and earnings crept higher. Indeed the unemployment rate held at 3.8% although employment growth did slow slightly, however the bigger takeaway was the 3.6% print for regular wage growth (vs. +3.5% expected). This somewhat affirms a robust underlying trend following sizeable rises in private sector regular pay in April too.

Despite that Sterling fell -0.87% and even broke below $1.240 at one stage intraday. Clearly the market isn’t putting much emphasis on the UK data at the moment and instead throwing more weight behind the incremental pricing of a hard Brexit. On that, Sky News ran a story yesterday suggesting that Boris Johnson, should he win the PM job, could send lawmakers home in October to stop them hindering a possible no deal Brexit. However, the report also said that a decision hasn’t been made yet. It was also reported by the Times last night that Johnson wanted to have an early election while the current Labour Party leader Jeremy Corbyn is “still around”.

Finally, looking at the day ahead this morning we’ve got more data out of the UK with the June CPI/RPI/PPI data docket before the final June CPI revisions for the Euro Area are released. In the US we’re due to get June housing starts and building permits data. This evening we’ll also get the Fed’s Beige Book while the Fed’s George is due to speak at 6.30pm BST on the economic outlook. As for earnings, Bank of America is the latest US bank to report while the tech sector will also be in focus with eBay, Netflix and IBM also releasing earnings.

 

3A/ASIAN AFFAIRS

I)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 5.92 POINTS OR 0.20%  //Hang Sang CLOSED DOWN 24.45 POINTS OR 0.09%   /The Nikkei closed DOWN 66.07 POINTS OR 0.31%//Australia’s all ordinaires CLOSED UP .42%

/Chinese yuan (ONSHORE) closed UP  at 6.8771 /Oil UP TO 57.98 dollars per barrel for WTI and 64.92 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED UP // LAST AT 6.8771 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.8794 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 STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER 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

 

4/EUROPEAN AFFAIRS

UK

BoJo’s new plan would sideline parliament on Oct 31 and thus guarantee a no deal brexit

(zerohedge)

Boris Johnson’s New Plan Would Sideline Parliament And Guarantee A ‘No Deal’ Brexit

The British pound tumbled to its weakest level in more than two years on Tuesday as fears of a ‘no deal’ Brexit continued to weigh on GBP, which has been steadily sinking during the Tory leadership contest that many expect will send Boris Johnson, a committed Brexiteer, to No. 10 Downing Street.

GBP

And on Tuesday, Johnson – who said last night that he wouldn’t accept any time limits (both he and his rival Jeremy Hunt ruled out such a measure), unilateral escape hatches or any other kind of elaborate device to make the Irish Backstop more palatable – gave investors one more reason to worry: Sky News reports, citing anonymous sources from within Johnson’s campaign, that the candidate could delay a customary speech by the Queen that marks the beginning of the Parliamentary session – this would render MPs unavailable on Oct. 31, the day the UK is set to leave the EU. Though Johnson’s rival Jeremy Hunt has said he’s open to another brief delay, Johnson’s position is that on Halloween, Brexit will finally mean Brexit.

There have been some negotiations to work out an alternative to Theresa May’s withdrawal agreement, but thanks to the inevitability of dealing with the hated Irish Backstop – which conservatives argue would effectively allow Europe to annex Northern Ireland – talks have once again been fraught.

 

Boris

As Sky explains (for our American readers), Parliament is typically out of session for between one and two weeks ahead of the Queen’s speech – meaning MPs would in effect be unavailable to stop a no-deal Brexit immediately before October 31.

Johnson’s campaign confirmed that the delay is one option being explored, but insisted that no final decision had yet been made. But others pointed out that this move would scupper the chances of a last-minute deal, since Parliament wouldn’t be there to approve it.

With an orderly Brexit is looking less likely by the day – even as some remainer Tories join the struggle to thwart their own future leader. And for anybody trying to discern what might happen next, well, BBG has put together yet another complicated Brexit flow chart.

 

END

EU

Merkel’s ally , Ursula Von Der Leyen has been elected to the top EU post replacing Juncker

(zerohedge)

Merkel Ally Narrowly Elected To Top EU Post, Averting “Major Institutional Crisis”

Germany’s Ursula von der Leyen, considered a key and close ally of Chancellor Angela Merkel, has been narrowly elected president of the EU Commission, becoming the first woman to fill Europe’s most powerful policy-making post, and the first German at the helm in over half a century.

The 60-year old center-right German defense minister will replace Commission President Jean-Claude Juncker starting November 1st after receiving votes from over half of the members of the European parliament on Tuesday evening. 383 European lawmakers voted in favor of von der Leyen assuming the EU’s most visible post, surpassing the 374 votes needed to confirm her. Chief Economist at Berenberg Bank, Holger Schmieding said the EU had “averted a major institutional crisis” by securing the appointment.

 

Germany’s Ursula von der Leyen has been elected the new President of the European Commission, set to take office Nov. 1, via Reuters

Schmieding pointed out further that there’s now no doubt that Christine Lagarde, who just announced her resignation as head of the IMF, will be next President of the European Central Bank.

Ursula von der Leyen’s succeeding Luxembourg’s Juncker means the top policy job will remain in Christian Democratic party hands (CDU) for another five years. Her nomination over two weeks ago was generally considered a “total surprise”. She’s long been considered among the strongest pro-EU voices in Merkel’s cabinet.

A BBC political analyst pointed out that “European leaders will be breathing a sigh of relief,” given it “took days of fraught negotiations and a difficult compromise among EU countries to nominate von der Leyen.

“Our most pressing challenge is keeping our planet healthy,” she had told the EU Parliament prior to the vote. “This is the greatest responsibility and opportunity of our times.” She also vowed to push for more social welfare oversight by the EU, to advance women’s rights, and to root out poverty.

Bloomberg noted,

She also pledged to turn parts of the European Investment Bank, the EU’s lending arm, into a “climate bank” in a bid to unlock 1 trillion euros of investment ($1.12 trillion) over the coming decade.

On commerce, she’s warned against the dangers of protectionism and upheld the World Trade Organization’s multilateral vision. “We defend the rules-based order because we know it is better for all of us,” she said.

The BBC summarized her positions outlined in her speech given in European parliament Tuesday as follows:

  • She would push to give the European Parliament “the right of initiative” – meaning the Commission would have to legislate on MEPs’ resolutions; currently only the Commission can draft laws
  • On irregular migration to the EU, she said she would boost the EU’s border force Frontex to 10,000 staff by 2024, but said “we need to preserve the right to asylum through humanitarian corridors”
  • She offered an EU “reinsurance scheme” to bolster national insurance schemes for the unemployed.

“The trust you placed in me is confidence you placed in Europe,” she said after securing the vote Tuesday.

Donald Tusk

@eucopresident

Congratulations Ursula @vonderleyen. Congratulations Europe.

“Your confidence in a united and strong Europe, from east to west, from south to north,” she continued “It is a big responsibility and my work starts now,” she added. “Let us work together constructively.”

Interestingly, Poland’s Prime Minister Mateusz Morawiecki pointed out at press conference in Warsaw that votes from Law & Justice MPs had “tipped the balance” in von der Leyen’s favor, and that she sees eye to eye with Poland concerning the “threat from Russia,” as related by Bloomberg. In other words, it was the Poles who assured that Germany maintains its supreme dominance over Europe, and did everything in their power to weaken Russian influence in Europe.

In light of historical events, it would be ironic if that particular twist comes back to bite Poland some day in the not too distant future.

END

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Turkey/USA

So far, no sanctions.  However Turkey will not be getting the F 35 fighter jets

(zerohedge)

Trump To Turkey: “We’re Not Going To Sell You The F-35” After Russian Missile Purchase

Turkish President Recep Tayyip Erdogan celebrated the delivery of the first S-400 anti-air missiles on Tuesday, even going so far as to suggest that Turkey and Russia (the system is made by Russian defense contractor Almaz-Almaty) might collaborate on building weapons. But across the Atlantic, President Trump was less than amused.

Washington has repeatedly insisted that if Turkey bought the S-400 over a steeply discounted Patriot missile system, that the US would block the sale of Lockheed Martin’s F-35 fighter jets – and unprecedented punishment for a NATO member. And as it turns out, that’s exactly what President Trump is planning to do.

Trump

During a Cabinet meeting on Tuesday, Trump said “we are now telling Turkey…we’re not going to sell you the F-35 fighter jets.”

 

Trump added: “It’s a very tough situation that they’re in. And it’s a very tough situation that we’ve been placed in the United States,” Trump said. “With all of that being said, we’re working through it. We’ll see what happens, but it’s not really fair.”

But Trump was mum on a more pressing issue: Whether Washington will subject Ankara to sanctions under the Countering America’s Adversaries Through Sanctions Act, or CAATSA. While Erdogan has suggested that Trump would find a way to avoid the sanctions, last year, Congress set a high bar for waiving sanctions under CAATSA.

And what’s more, if Washington doesn’t make an example of Ankara, it could have a full-blown mutiny on its hands, as New Delhi is also eyeing the S-400.

Trump isn’t the only senior US official talking tough about the S-400. During his Senate Armed Services Committee confirmation hearing, Esper said that he has told his Turkish counterpart that “you can either have the S-400 or the F-35, you cannot have both.”

But who knows? Maybe one one-on-one phone call between Erdogan and Trump will resolve everything.

 

end

Turkey/Iraq

Erdogan will not be a happy camper with this news:  In Northern Iraq (ERBIL),  a vice consul was assassinated in a brazen daytime attack.  The Kurds as you know are very angry with the constant incursion of Turkey into Norther Iraq

(courtesy zerohedge)

Turkish Diplomat Assassinated In Brazen Daytime Attack On Erbil Restaurant

A brazen daylight assassination raid by unknown attackers on a restaurant in the northern Iraqi city of Erbil has left at least one Turkish diplomat dead and two others injured. “They were shot at point blank range by unknown assailants,” one eyewitness described of the afternoon attack which local security sources described as a “serious” and developing situation.

Despite global headlines initially identifying three diplomats killed, Turkey’s Foreign Ministry confirmed “One personnel of the Erbil embassy was killed in an armed attack today afternoon as he was outside the embassy building.” However, it appears multiple diplomatic personnel were shot, with one Iraqi bystander possibly killed. The shooting comes during an uptick in Turkey’s highly controversial cross-border operations against the PKK in northern Iraq.

 

Via Rudaw

Iraq’s Irbil is the seat of the Kurdistan Regional Government (KRG), which Turkey has historically had very tense relations with as it’s long attempted to root out the outlawed Kurdistan Workers’ Party (PKK). Ankara has in the past accused Iraq and Syria of harboring Kurdish “terrorists” at war with the Turkish state across its border.

Since 2018 and multiple times before, notably in 2008, Turkey’s armed forces have been embroiled in military offensives in northern Iraq, which both the KRG and the federal government in Baghdad have condemned as illegal incursions and a violation of Iraqi sovereignty.

Conflicting reports suggest more may have died, given at least three were shot by “unknown assailants” per Al Jazeera:

Security sources earlier told Al Jazeera that at least three Turkish security personnel were killed in Wednesday’s attack. Among those reported killed on Wednesday was the Turkish deputy council-general.

Al Jazeera’s Osama Bin Javaid, citing security sources, said the incident took place in the upscale neighbourhood of Ankawa.

“They were shot at point blank range by unknown assailants,” he told, reporting from Iraq’s capital, Baghdad.

The area of the shooting is being described as among “the safest in the city” according to reports.

And further, one well-known US war correspondent has pointed out the restaurant is located directly across from the US consulate in the city.

View image on TwitterView image on Twitter

EHA News@eha_news

A restaurant with embassy personnel inside in ‘s was attacked, leaving one personnel dead.

It was reported that ‘s Ambassador Hakan Karaçay was not at the scene during the attack.

 

The group of Turkish diplomats had been dining at the restaurant when the attack to place, however, top Turkish diplomat in Erbil Hakan Karaçay was not present. The AFP reported the Turkish vice consul as being among the dead.

Local media reports the area is in lock down as KRG police attempt to track and root out the suspected assassins.

Recent weeks have witnessed an uptick in Turkey’s highly controversial cross-border operations against the PKK in the Hakurk region of northern Iraq. Likely the gunmen belonged to the PKK or another Kurdish militant movement angered by recent Turkish aggression in the region.

end

Iran/UAE

The missing vessel has been located in Iran.  However Iran claims that the vessel was disabled and needed Iran’s help.  That sounds good except for the fact that the crew has not been heard from since Saturday,

your guess is as good as mine on this one..

(zerohedge)

 

Iran Claims It Rescued “Missing” UAE Tanker After US Said IRGC “Forced” It Toward Iran

The saga of the UAE “mystery” tanker which seems to have disappeared after its transponder went dark late Saturday night, and which no one has heard from since it drifted toward Iranian waters in the Strait of Hormuz over the weekend, has deepened after Iran contradicted US media reports of IRGC involvement.

The semi-official news agency ISNA said hours after initial reports on Tuesday suggested Iran’s military “forced” the vessel into Iranian waters that Iranian navy vessels actually came to the assistance of the disabled foreign oil tanker. The statement indicated the vessel was partially disabled and in desperate need of repairs.

“(Spokesman) Abbas Mousavi said… that an international oil tanker was in trouble due to a technical fault in the Persian Gulf… After receiving a request for assistance, Iranian forces approached it and used a tugboat to pull it toward Iranian waters for the necessary repairs to be carried out,” ISNA said, as cited by Reuters.

 

UAE-owned oil tanker Riah, via The Daily Mail

The AP reported how it all started over the weekend:

Tracking data shows an oil tanker based in the United Arab Emirates traveling through the Strait of Hormuz drifted off into Iranian waters and stopped transmitting its location over two days ago, raising concerns Tuesday about its status amid heightened tensions between Iran and the U.S.

The report detailed that the Riah, a 58-meter oil tanker which operates frequently in the region, switched off its transponder for the first time in three months after 11pm on Saturday, based on tracking data.

As of Monday “red flags” were raised as US officials began inquiring of the Riah’s status. CNN’s Pentagon correspondent Barbarra Starr had this to say based on intelligence sources: “US intel increasingly believes UAE tanker MT RIAH forced into Iranian waters over the weekend by #IRGC naval forces. UAE isn’t talking.”

 

Via Marine Traffic/The Daily Mail

Summarizing the statements of anonymous US intelligence and defense officials, the Jerusalem Post reported:

US officials believe that the Panama flagged tanker M/I RIAH was seized by the Iranian Revolutionary Guard on Saturday night, when it was crossing the Strait of Hormuz in international waters. Information from the US intelligence agency indicated that the IRGC troops forced the tanker to enter Iranian territorial waters before withdrawing the vessel to Iran’s Qeshm Island.

View image on TwitterView image on Twitter

ELINT News@ELINTNews

: This is the last known position of the UAE (Panama flagged) oil products tanker in Iranian waters near Iran’s Qeshm island 44 hours ago. CNN’s @barbarastarrcnn reports US intel belives IRGC Navy may have forced the vessel into Iranian waters, no contact with crew.

However, this could be another case of hawkish US intelligence and defense officials hyping a false threat. Starr continued based on her source: “Some Gulf sources say ship simply broke down/towed by Iran. US says though no contact with crew. Last location Qesham Island.”

Following the UK’s controversial and aggressive move to seize a tanker carrying 2 million barrels of Iranian oil of Gibraltar earlier this month, Tehran’s military has threatened to in turn intercept UK vessels.

This also comes after repeat pledges over the past year by Iran’s leaders following a US sanctions campaign that if Iran is blocked from exporting its oil out of the gulf then no country would be able to traverse the vital oil shipping lanes either.

The question remains: is this yet another knee-jerk attempt of US officials to immediately “blame Iran” in order to ramp up pressure? Could the “missing” UAE vessel just be the result of an accident or being disabled at sea?

end

6.Global Issues

Simon Black comments on the fact that 1/4 of all bond issuance is negative in yield and now he witnesses that some junk bonds are negative yielding.  Why do investors buy this crap..because many expect yields to go deeper into the negative and thus these bonds will yield a capital gain. This is absurd and that is why he buys gold

 

(Simon Black)

Insanity: Now Even Junk Bonds Have Negative Yields

Authored by Simon Black via SovereignMan.com,

75 years ago this month, a group of 744 delegates from around the world gathered at the very posh Mount Washington Hotel in New Hampshire to build a brand new global financial system.

The year was 1944. World War II was still raging in Europe and the Pacific.

But with the successful invasion of Normandy well underway, the Allies knew that Hitler’s days were numbered. And they needed to start preparing for a post-war world.

Everyone knew the US would emerge from World War II as the the dominant superpower.

So the financial system they designed put the United States at the center of the world economy.

They called it the Bretton Woods system, named for the town in New Hampshire where they gathered.

And their central idea was that the value of the US dollar would be fixed to gold at a rate of $35 per troy ounce, while every other currency would be fixed to the US dollar.

The Swiss franc, for example, was fixed at a rate of 4.3 francs per US dollar, while the Danish krone was fixed at 4.8.

Bretton Woods ushered in a period of remarkable economic stability worldwide.

During the roughly quarter-century that the Bretton Woods system was in place, banking crises were almost nonexistent. Recessions were rare.

And global debt fell from nearly 150% of GDP at the end of World War II, to roughly 30% by the early 1970s.

Then it all came to a screeching halt in 1971.

The United States, weighed down by a costly war in Vietnam, suddenly and unilaterally terminated the agreement.

The US government wanted the flexibility to print as much money as it needed without being forced to maintain the gold standard.

So the whole system collapsed, practically overnight.

And it was replaced by a new standard where unelected central bankers have supreme authority to conjure near infinite quantities of money out of thin air.

The effects have been pretty disastrous.

Ever since the end of Bretton Woods, global debt has skyrocketed to roughly $200 TRILLION, approximately 225% of GDP. (Harvey:  correct number is 250 trillion dollars)

Banking crises and financial shocks have become much more commonplace. Market crashes are more severe. Recessions are more common. Inflation worldwide has soared.

(It’s ironic that, back in 1944, the price of a room at the Mount Washington was $18. Today it’s over $250.)

Perhaps most of all, we now regularly witness some of the most extreme financial anomalies imaginable.

And one of the most obvious examples of this is negative interest rates.

In a number of countries, including Switzerland, Japan, Denmark, and the entire Eurozone, central bankers have printed so much money that interest rates are actually negative.

If you buy a TEN YEAR German government bond, for instance, your annual investment return will be NEGATIVE 0.27% per year, based on this morning’s rates.

That’s insane.

But just a few days ago the insanity reached a whole new level.

According to the Wall Street Journal, there are now some JUNK BONDS in Europe that have negative yields.

Think about this: a junk bond is basically debt issued by a company with financials so risky that analysts expect there’s a good chance the company won’t pay its debts.

Hell, the company might not even be in business by the time the debt matures.

And yet, despite these substantial risks, investors are willing to loan money to these companies… at NEGATIVE rates of return.

Seriously?? You take all that risk and then GUARANTEE that you’ll lose money.

Why do investors put up with it? Saturday’s Wall Street Journal offers a chilling explanation:

One euro junk bond from U.S. packaging company Ball Corp, for example, trades at a yield of minus 0.2% and matures in December 2020. That compares to a European deposit rate of minus 0.4% or a yield on a German government bond with a similar maturity of about minus 0.7%.

The choice for investors is about the balance between needing to stay invested and how much risk to take, according to Tim Winstone, a fixed-income portfolio manager at Janus Henderson. A bond like Ball Corp’s is “a safe place to hang out,” Mr. Winstone said. “And just because something is negative-yielding, that doesn’t mean it can’t get more negative-yielding.” Falling yields mean rising bond prices and gains for investors, at least on paper.

Many expect more bond yields to go negative as central banks in the U.S. and Europe cut interest rates or return to bond-buying to stimulate economies. In Europe especially, investors are realizing that negative interest rates are going to last a long time because the ECB needs to overshoot its inflation target to make up for the long spell when inflation has been far below 2%. Without a period of higher inflation, it won’t meet its target on average over the medium term.

The number of junk-rated companies with negative-yielding bonds will definitely go up, according to Barnaby Martin, credit strategist at Bank of America Merrill Lynch. “It doesn’t take much for it to go from 14 companies to 30 or 50 or 100,” he said.

In other words, as John Rubino recently noted, investors are now extrapolating falling interest rates into the future and playing junk bonds for the capital gains they’ll generate when their future borrowing costs go down. This is one of those sentiment shifts that financial historians will single out for special attention when sifting through the rubble of the coming crash.

Honestly I’m not a pessimistic person. But this sort of absurdity makes me pause and consider what might happen next.

The global economic expansion is one of the longest on record, ever. Financial markets around the world are soaring at all-time highs. Stocks. Bonds. Real Estate.

One of the only things we know for sure about financial markets is that they are ALWAYS cyclical. Up/Down, Boom/Bust. These cycles have been with us forever.

It’s impossible to predict exactly WHEN the decline will occur. But when you see JUNK bonds with NEGATIVE yields, it’s likely that we’re probably close to the end of the boom phase.

It’s possible this madness could continue for a while longer. Or it could end tomorrow.

No one has a crystal ball… but the important fact is to realize that at some point, this trend has got to correct.

All the trillions of dollars printed out of thin air to buy securities that yield negative interest rates will eventually have consequences.

That’s why I think makes sense to take sensible steps to protect yourself… no matter what happens next.

That’s why I own gold.

Gold is still one of the only asset classes in the world that’s not anywhere near an all-time high (unlike stocks, bonds and real estate).

In fact, relative to what’s going on in the world, gold is downright cheap.

Gold is something people tend to buy in times of uncertainty… and right now, there is a lot of uncertainty.

Between trade disputes, financial madness, and the Bolsheviks coming to power, I see a lot of reasons to own gold.

Gold is also at an interest tipping point: gold supplies around the world are falling, and that could be a major catalyst for much higher gold prices in the future.

It’s never a good idea to dump all your life savings into any one thing. But at a time when central banks are printing more money out of thin air, and the bull market is long in the tooth, allocating a portion of your savings to gold can make a lot of sense.

END

EBOLA/CONGO/UGANDA

Ebola has broken out again in the Congo and this may turn out to be a huge global emergency

(zerohedge)

W.H.O. Declares Congo Ebola Outbreak A Global Emergency

Jut as we warned a month ago, the World Health Organization said today – following a meeting of experts – that the deadly Ebola outbreak in Congo has become an international public health emergency.

World Health Organization (WHO)

@WHO

The International Health Regulations Emergency Committee on in provided the following public health advice for neighbouring countries:

View image on Twitter

World Health Organization (WHO)

@WHO

BREAKING NEWS: The outbreak in constitutes a public health emergency of international concern, citing concerning geographical expansion of the virus: WHO Director-General, @DrTedros following the IHR Emergency Committee’s recommendation \

More than 1,600 people have died since August in the second deadliest Ebola outbreak in history, which is unfolding in a region described as a war zone.

 

As AP reportsthis week the first Ebola case was confirmed in Goma, a major regional crossroads on the Rwandan border with an international airport. Experts have feared this for months.

And now, WHO Director-General Tedros Adhanom Ghebreyesus has confirmed that the health group was concerned that the virus could spread outside of the Democratic Republic of Congo.

“Although there is no evidence yet of local Ebola transmission in either Goma, DRC or Uganda, these two events represent a concerning geographical expansion of the virus,” the director general said at a press conference.

World Health Organization (WHO)

@WHO

LIVE from WHO HQ: Press Conference on the International Health Regulations Emergency Committee on in https://www.pscp.tv/w/b_9U6TI2MTAyMHwxQmRHWUFRWGFYb0dYNLHjCwIfBPdIruApMC9GQAZ_1FrYo48F09xyOWSLinc= 

Who @WHO

LIVE from WHO HQ: Press Conference on the International Health Regulations Emergency Committee on #Ebola in #DRC

pscp.tv

The outbreak began in August 2018 and has infected more than 2,300 people.

Interestingly, WHO does not recommend any restrictions on travel or trade, which, it says “rather than stopping Ebola, can actually hamper the fight. Such restrictions force people to use informal and unmonitored border crossings, increasing the potential for the spread of disease.”

 

Tedros concluded the press conference by saying:

“Now is the time for the international community to stand in solidarity with the people of DRC, not to impose punitive and counter-productive restrictions that will only serve to isolate DRC.”

However, as  The Organic Prepper’s Daisy Luther recently wrote, people like to think of Ebola as a disease that only strikes superstitious locals in the deepest jungles of the Democratic Republic of Congo. But just like the last time the disease made it to our shores, there are warning signs and it’s time to start paying attention.

There are several events in the news that when looked at together, lead to concerns we could be looking at a replay of 2014.

This article is not being written to demonize people from certain regions or the world, to bring up arguments for or against immigration, or to scare the pants off you. It’s a collection of facts that I’ve written with as little bias as possible.

A quick recap of the 2014 outbreak that made its way to our shores

Everyone remembers the Ebola outbreak of 2014. It ripped through West Africa for two years, killing over 11,000 people and sickening nearly 30,000. But the reason WE remember it in the United States is that it crept into our country. Shortly after the CDC warned us to prepare for a potential Ebola pandemic, the first case was diagnosed in Dallas, Texas, when a man from West Africa visited the hospital on two occasions, having been turned away the first time as just having “the flu.” The original patient died, and two nurses caring for him caught the potentially deadly virus. One patient completely overwhelmed an entire hospital.

It is honestly shocking that more people didn’t become ill, as one nurse traveled on a plane while sick, and in another incident, a doctor in New York City who had volunteered in Guinea was also diagnosed. All in all, eleven people in the United States were treated for Ebola (that we know of, anyway) and it certainly wasn’t because of the expert handling of the near-crisis. It was pure luck.

There were all sorts of mismanagement. Everything from not requiring a quarantine of travelers returning from the affected area to housing 11 potential cases in a hotel to a ship from Liberia with sick passengers being allowed to dock in New Orleans to the near-disastrous handling of contaminated samples in Dallas, it is an absolute miracle that there was no major outbreak in the US.

If there were hundreds or thousands of patients across the country, it wouldn’t take long for things to devolve into absolute chaos. Ebola can have a death rate as high as 90%.

1) The DRC is in the midst of the second largest Ebola outbreak in history.

According to the World Health Organization, confirmed cases of Ebola have exceeded 2000 in the DRC. This makes it the second-largest outbreak in history, after the 2014-2016 epidemic.

There are several reasons that the WHO has been unable to get a handle on this outbreak. Last year, I wrote about how the families of Ebola patients were breaking them out of quarantine and taking them to prayer meetings. I also wrote that the disease had reached a major urban center, increasing the likelihood of its spread.

The area at the heart of the outbreak is a warzone, which makes it difficult for doctors to treat patients, and at the same time, the patients are untrusting of modern medicine. People are fleeing Ebola-stricken villages in fear, which just makes the spread more likely.

2) Ebola is no longer contained within the DRC

Today it was reported that Ebola has hopped the border into Uganda, where today, a young patient died. The five-year-old deceased has two relatives who have also tested positive.

Zero Hedge reports:

On Wednesday, health experts in both countries were scrambling to understand how the boy’s relatives crossed the border on June 9th, and who they may have infected along the way. The boy was taken to a Ugandan hospital after vomiting blood and exhibiting other symptoms, while two relatives of the boy also tested positive for Ebola. Uganda has been heavily screening visitors from Congo for signs of fever, and has vaccinated more than 4,700 health workers against the disease according to a joint statement by WHO and Ugandan officials.

Uganda’s health ministry said the boy’s mother, who is Congolese but married to a Ugandan and living in the Kasese district of Uganda, had travelled back to Congo to nurse her sick father, who subsequently died of Ebola. On returning to Uganda, the boy had started coughing up blood and vomiting and was taken to Kagando hospital where health workers immediately suspected Ebola.

A sample of his blood tested positive for Ebola and on Wednesday two of the boy’s relatives were also confirmed to have contracted the disease. –Financial Times (source)

Experts have warned if Ebola spreads into other countries that the virus will become even more difficult to contain.

Angola, which shares a border with the DRC, has closed that border to prevent the spread of the virus into their country.

3) The Department of Border Patrol just apprehended a large group of people from Africa

In a press release, the Border Patrol announced on May 31 that they had apprehended 116 people from Africa trying to cross the Mexican/US border.

U.S. Border Patrol agents assigned to the Del Rio Station apprehended a large group of 116 individuals Thursday.

“Large groups present a unique challenge for the men and women of the Del Rio Sector,” said Chief Raul Ortiz. “This large group from Africa further demonstrates the complexity and severity of the border security and humanitarian crisis at our Southwest border.”

Agents performing line watch operations apprehended the group after they illegally crossed the Rio Grande into the U.S. around 10:30 p.m.

This is the first large group apprehended in the Del Rio Sector and the first large group of people from Africa – including nationals from Angola, Cameroon and Congo – apprehended on the Southwest border this year. (source)

Here’s a video of the apprehension. This link came from the press release above.

4) And these aren’t the only people from the DRC coming into the United States through Mexico.

Border Patrol says that there’s an uptick of migrants from this part of the world entering the United States through the Southern border.

On June 5, agents assigned to the Eagle Pass Station arrested a group of 34 people from the continent of Africa. Since May 30, more than 500 people from the continent of Africa have been arrested by the U.S. Border Patrol in Del Rio Sector. Agents have encountered immigrants from Africa crossing the Rio Grande River in multiple separate events, including one group of over 100 individuals. These groups are primarily made up of family units from the Republic of the Congo, the Democratic Republic of the Congo and Angola. (source)

On June 6, San Antonio news station put out a desperate plea for French-speaking volunteers to help with an influx of migrants from the area. Interim Assistant City Manager Dr. Collen Bridger shared the details of the situation with KEN 5:

Bridger said the Congolese migrants began to arrive in town on Tuesday. They told Migrant Resource Center workers, they traveled with a group of about 350 migrants through Ecuador to the southern border.

“When we called Border Patrol to confirm, they said, ‘yea another 200 to 300 from the Congo and Angola will be coming to San Antonio,’” Bridger said.

That included Masengi, a Congolese migrant, who didn’t want to have his face on camera but told KENS 5 via Google Translate he arrived to the southern border as an asylum seeker.

He said he came to America for security reasons and said, “My family is staying in my country but with the help of the USA I can get it back.” (source)

San Antonio will be sending the asylum seekers to other cities across the United States.

…The city opened up the Frank Garrett Center to house the Congolese migrants for the weekend, but after that, they’re not sure where they’ll house them especially since they don’t know how long some of them will be here.

“The plan was 350 of them would travel from San Antonio to Portland. When we reached out to Portland Maine they said, ‘Please don’t send us any more. We’re already stretched way beyond our capacity,” Bridger said.

“So we’re working with them [the migrants] now to identify other cities throughout the United States where they can go and begin their asylum seeking process. (source)

Obviously, just because a person is Congolese doesn’t mean they are infected with Ebola. These are just a series of connecting facts to which we should pay attention.

At this time, there is no evidence that anyone has Ebola in the United States, including Congolese asylum seekers. Border Patrol has said this internet rumor is not true.

5) The medical screening process is overwhelmed

Another concern is the quick screening process performed by physicians at the border. There has been a massive influx of immigrants crossing through from Mexico into the United States and the system is overwhelmed.

While every person crossing has some kind of health check-up, Ebola is difficult to catch in the early stages. According to the CDC:

Diagnosing Ebola Virus Disease (EVD) shortly after infection can be difficult. Early symptoms of EVD such as fever, headache, and weakness are not specific to Ebola virus infection and often are seen in patients with other more common diseases, like malaria and typhoid fever.

To determine whether Ebola virus infection is a possible diagnosis, there must be a combination of symptoms suggestive of EVD AND a possible exposure to EVD within 21 days before the onset of symptoms (source)

I was unable to find detailed information on the exact screening process for asylum seekers crossing the border from Mexico. If someone locates it, please share it in the comments so I can update this article.

Update: Here’s a link to the CDC’s recommended screening process for refugees. It particularly notes tests for Hepatitis, HIV, parasites, malaria, STDs, and tuberculosis, along with some general tests. Keep in mind that the symptoms of Ebola may not show up for 21 days, so it’s possible for a person to pass a medical exam during the incubation period.

There are quarantine stations at all US points of entry and laws that cover isolation and quarantine. As for how long people are quarantined, it appears it may be 72 hours.  There’s obviously going to be some travel time, too, but it really depends on how the asylum seeker reached the border. Did they spend months walking through Mexico on foot? If so, they would have already shown symptoms. But it has not been made clear how they arrived at the border.

(Thank you to Sandy and Lisa for this additional information.)

Conclusion

The stage is being set for what could be a catastrophe of epic proportion. Here’s what you need to know to prep for a potential Ebola outbreak in the United States and here’s a detailed book about prepping for a variety of pandemics. Here’s more information about how Ebola is transmitted.

The United States dodged the bullet last time Ebola cast its shadow here. Will we get that lucky again?

 

7. OIL ISSUES

Oil prices plunge and the deep state is in panic mode as Trump sends in Rand Paul to ease tensions with Iran

(zerohedge)

Oil Prices Plunge After Trump Sends Rand Paul To Ease Tensions With Iran

A huge development that could roll back fast escalating tensions between Washington and Tehran in the Persian Gulf: Politico reports that Sen. Rand Paul  the outspoken anti-interventionist Libertarian Republican from Kentucky  has been handpicked by President Trump as his emissary to mediate with Iran after the Kentucky senator proposed the idea.

Trump has now reportedly signed off on the plan, first pitched over the past weekend by Paul at a golf outing as a way to avoid escalating toward military conflict with Iran, according to multiple US officials.

 

Sen. Rand Paul (R-KY), file photo: Getty

It’s as yet unclear just how far along the plan is, or if a potential meeting with Iranian Foreign Minister Javad Zarif has actually been agreed to, but Sen. Paul would seek to ease tensions while providing a White House exit away from the two bad options of direct conflict or continued “tanker wars” which could sink global oil markets.

Politico reported the following details on Wednesday:

Over a round of golf this past weekend, Sen. Rand Paul asked President Donald Trump’s blessing for a sensitive diplomatic mission.

Paul proposed sitting down with Iranian Foreign Minister Javad Zarif to extend a fresh olive branch on the president’s behalf, according to four U.S. officials. The aim: to reduce tensions between the two countries. Trump signed off on the idea.

Like his father Ron Paul, the junior Paul has over the past years been outspoken in favor of drawing down US troops world-wide and ending “regime change wars”. He’s been a consistent critic since the start of his political career on everything from Afghan policy to the 2003 invasion of Iraq, to US covert efforts to overthrow Assad.

For now, it seems the market is viewing this positively as oil prices are re-plunging on the apparent de-escalation (though this will likely frustrate OPEC).

Also likely frustrated is the ‘deep state’, no doubt already riled over Trump’s choice to represent the White House at the table with Zarif. As Politico reported further:

Paul has long been at odds with the team of hawks serving at the top echelons of the Trump administration, including National Security Adviser John Bolton and Secretary of State Mike Pompeo. At the outset of the administration, he led a public campaign against the administration’s current special envoy to Venezuela, Elliott Abrams, when his name was floated as a candidate for deputy secretary of state — and helped to scuttle his candidacy by bashing his hawkish views in an appearance on Tucker Carlson’s Fox News show, according to a source directly familiar with the events.

Currently FM Zarif is in New York, on a restricted US visa that only allows him to travel withing blocks on the UN headquarters, for United Nations meetings and sit-down interviews with journalists.

END

8 EMERGING MARKET ISSUES

 

 

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

Euro/USA 1.1219 UP .0007 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 ALL /RED 

 

 

USA/JAPAN YEN 108.26 UP 0.065 (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 1.2406   DOWN   0.0003  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3062 DOWN .0024 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  WEDNESDAY morning in Europe, the Euro ROSE BY 7 basis points, trading now ABOVE the important 1.08 level RISING to 1.1219 Last night Shanghai COMPOSITE CLOSED DOWN 5.92 POINTS OR 0.20% 

 

//Hang Sang CLOSED DOWN 26.45 POINTS OR 0.09%

/AUSTRALIA CLOSED UP 0,42%// EUROPEAN BOURSES ALL RED 

 

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED

 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 26.45 POINTS OR 0.09%

 

 

/SHANGHAI CLOSED DOWN 5.92 POINTS OR 0.20%

 

Australia BOURSE CLOSED UP. 42% 

 

 

Nikkei (Japan) CLOSED DOWN 66.07  POINTS OR 0.31%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1402.10

silver:$15.62-

Early WEDNESDAY morning USA 10 year bond yield: 2.09% !!! DOWN 1 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.61 DOWN 1  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 97.30 DOWN 9 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.51% DOWN 4 in basis point(s) yield from YESTERDAY/

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

SPANISH 10 YR BOND YIELD: 0.45%//DOWN 4 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,59 DOWN 2 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 114 points higher than Spain.

 

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

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.88% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.1230  UP     .0018 or 18 basis points

USA/Japan: 108.09 DOWN .104 OR YEN UP 10  basis points/

Great Britain/USA 1.2434 UP .0025 POUND UP 25  BASIS POINTS)

Canadian dollar UP 46 basis points to 1.3041

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 6.8736    0N SHORE  (UP)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.8750  (YUAN UP)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.6830 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield DOWN 5 IN basis points from TUESDAY at 2.08 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.59 DOWN 5 in basis points on the day

Your closing USA dollar index, 97.21 DOWN 19  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 41.74  0.55%

German Dax :  CLOSED DOWN 89,94 POINTS OR .72%

 

Paris Cac CLOSED DOWN 42.67 POINTS 0.76%

Spain IBEX CLOSED DOWN 92,90 POINTS or 0.99%

Italian MIB: CLOSED DOWN 124.70 POINTS OR 0.56%

 

 

 

 

 

WTI Oil price; 57.23 12:00  PM  EST

Brent Oil: 64.31 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    62.76  THE CROSS LOWER BY 0.25 RUBLES/DOLLAR (RUBLE HIGHER BY 25 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  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 :  56.65//

 

 

BRENT :  63.56

USA 10 YR BOND YIELD: … 2.05…

 

 

 

USA 30 YR BOND YIELD: 2.56..

 

 

 

 

 

EURO/USA 1.1224 ( up 13   BASIS POINTS)

USA/JAPANESE YEN:108.05 DOWN .144 (YEN UP 14 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97. 22 DOWN 17 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2435 UP 25  POINTS

 

the Turkish lira close: 5.6894

 

 

the Russian rouble 62.93   UP 0.08 Roubles against the uSA dollar.( UP 8 BASIS POINTS)

Canadian dollar:  1.3048 UP 38 BASIS pts

USA/CHINESE YUAN (CNY) :  6.8736  (ONSHORE)/we need to watch these levels/anything greater than 6.95 will be deadly./

 

USA/CHINESE YUAN(CNH): 6.8792 (OFFSHORE) we need to watch these levels/anything greater than 6.95 will be deadly/

German 10 yr bond yield at 5 pm: ,-0.29%

 

The Dow closed  DOWN 115.78 POINTS OR 0.42%

 

NASDAQ closed DOWN 37.59 POINTS OR 0.46%

 


VOLATILITY INDEX:  13.61 CLOSED up .75

LIBOR 3 MONTH DURATION: 2.299%//libor dropping like a stone

 

 

 

 

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

MARKET TRADING//USA

TRADING IN GRAPH FORM FOR THE DAY//

Gold, Silver, & Bonds Jump; Stocks Dump As Trade Talks Stall Over Huawei

“There was blood” in the oil complex as Iran tensions were de-escalated.

 

China was flat overnight as the afternoon session erased the morning session’s gains…

 

 

European stocks were sold today, accelerating their losses after US opened…

 

 

US markets were ugly today with Trannies trounced (hurt by a collapse in CSX) erasing all the gains from yesterday and then some (to go from first to worst on the week)… All majors red on the week…

 

 

The S&P 500 fell back below 3,000..

 

Weak close as headlines about trade talks stalling hit…

 

 

 

VIX was notably higher today…

 

Credit markets have widened dramatically in the last few days…

 

Treasury yields tumbled hard today…

 

10Y yields are back at post-Powell prepare remarks levels…

 

The yield curve continued to flatten…

 

The 3m10Y curve has now been inverted for 38 straight days…

 

The dollar was weak today with selling pressure coming as US equity markets opened…

 

Yuan found support at the PBOC fix and rallied on the day…

 

Some early ugliness in cryptos was met with dip-buying power, lifting Bitcoin from within a tick of an $8000 handle to within a tick of $10000…

 

Still ugly on the week though…

 

Silver continues to dramatically outperform as crude is clubbed like a baby seal…

 

Oil prices plunged further as Iran de-escalation continued… (and inventory data did not help the bull’s case)…

 

Gold spiked…

 

Silver soared most since January today, up to $16 for the first time since February (up 7 of the last 8 days)

 

And silver is ripping back against the yellow metal…

This silver surge should not be a huge surprise as we warned previously of the extreme level it had reached…

 

Finally, we note that the global aggregate volume of negative-yielding debt is on the rise again and along with it both gold and bitcoin…

Correlation is not causation but if anything is a sign of policymaker-idiocy, $13 trillion of negative-yielding debt must be close.

END

a)Market trading/LAST NIGHT/USA

 

II)MARKET TRADING/USA

 

 

ii)Market data/USA

Despite a collapse in mortgage rates, building permits have now plunged the most since 2006..this is quite telling and indicative of a huge slowdown in the economy

(Zerohedge)

Building Permits Plunge Most In 3 Years Despite Tumbling Rates

After weak home sales data and re-weakening in mortgage applications (but a modest recovery in homebuilder sentiment), expectations were for a slowdown in starts and permits but the June prints were shockingly bad.

Housing Starts dropped 0.9% MoM (worse than the 0.7% expected) but Building Permits plunged 6.1% MoM – the worst drop since March 2016.

This occurred despite a collapse in mortgage rates during the reporting period.

This is the 6th month in a row of YoY declines in Building Permits…

Under the surface, multi-family starts tumbled 9.4% MoM as single-family jumped 3.5% from 818K to 847K

And multi-family permits collapsed 20.7%, from 454K to 360K, the lowest since Feb 2017.

Two of four regions posted an increase in housing starts last month, led by a 31.3% rise in the Northeast and a 27.1% advance in the Midwest. New construction declined 9.2% in the South and 4.9% in the West.

Get back to work Mr. Powell!!

end

iii) Important USA Economic Stories

Due to the poor harvest season, the USA is experiencing shortages of many canned vegetable items.

(Michael Snyder)

“Due To A Poor Harvest Season, We’re Experiencing Shortages On Many Canned Vegetable Items”

Authored by Michael Snyder via The Economic Collapse blog,

I know that this headline is alarming, but it is actually a direct quote from a notice that was recently posted in a Kroger supermarket.

And as you will see below, similar notices are being posted in the canned vegetable sections of Wal-Mart stores nationwide.  I would encourage you to examine the evidence in this article very carefully and to come to your own conclusions about what is happening.  At this moment, social media is buzzing with reports of shortages of canned vegetables all around the country.  But so far, the mainstream media is being eerily quiet about all of this.  Is there a reason why they aren’t saying anything?

For months, I have been reporting on the extremely bizarre weather patterns that are causing crop failures all over the planet.  But I certainly did not expect that we would already begin to see product shortages on the shelves of major U.S. supermarkets this summer.  What I am about to share with you is shocking, but the truth needs to get out.  For those that share my articles on your own websites, I know that all of the images in this article are going to be an inconvenience, but it is imperative that you include them when you republish this article because they tell a story.  All of the images are taken directly from Facebook, and they prove that we are now facing a nationwide shortage of canned vegetables.

So let’s get started.

This first image was posted on Facebook by Scott L. Biddle, and it shows a “product shortage” notice that was posted in the canned vegetable section of a Wal-Mart in Tennessee…

All the way over on the west coast, similar notices were photographed by Gina Helm Taylor in the state of Oregon on July 12th…

And here are a couple of notices that Daniel Moore was able to photograph during his lunch break at his local Wal-Mart…

It appears that the exact same notices were sent to Wal-Mart stores all across America.  Here is another one from Carol Guy Hodges…

And lastly, here is a photo that was shared by Randy Sevy…

This certainly isn’t the end of the world, and we can definitely survive without canned vegetables for a few weeks.

But as crop failures around the globe continue to intensify, will shortages such as this start to become increasingly common?

Earlier today, I received a very detailed email from a reader that had some excellent intel about what was going on at his own local Wal-Mart.  The following is an excerpt from what he sent to me…

This is alarming in and of itself, however, they are experiencing shortages across most product categories. The only information I could find online was pointing to a driver shortage. I noticed the shortage over the holiday weekend and returned this past weekend to take a closer look. There were problems with paper products, OTC medications, pickles (everyone wanted pickles?), lunch meats and hot dogs, vinegar, produce, alcohol, eggs, cereal, and feminine hygiene products. None of these items had signs like those posted in canned veggies, instead there were small tags placed over the original price tag the say “out of stock” in very small print.

While a driver shortage could cause issues, it’s a little odd to me that there are 12 packs of toilet paper and 6 packs of coke but no 24 packs of either. One of the items being restocked were more of the 12 packs of toilet paper. Does a driver shortage account for this? Another oddity is that one Walmart may have pickles but no tortillas while the exact opposite will be true for a different Walmart. The employees that would normally be stocking were instead counting products (manually) and pulling product to the front of the shelves. There was a six foot stretch of Cheerios along one shelf that was one box deep, hiding the empty shelves behind them.

One more item to note is that the first trip I made over the fourth of July weekend was to purchase canned corn. They had 9 cans of what I was looking for so I purchased them all. The following weekend they had restocked the same corn (there were 10 cans) but the price had increased almost 30%! The original purchase was for $1.44 while one week later the price had increased to $1.88.

Sadly, the economic law of supply and demand is going to continue to push prices higher.

And the tighter that food supplies become, the higher prices will go.

Since the mainstream media is being completely silent about this, many people on social media don’t have much information to go on.  Speculation is rampant, and many are fearing the worst.

One Facebook user named Stephen Dubaniewicz believes that all of the product shortage notices at his local Wal-Mart could mean that a food shortage is on the way…

Hopefully we have some more time before things start getting really bad, but I would encourage you to use this time to get prepared while you still can.

For months, I have been documenting the problems that U.S. farmers have been experiencing due to all of the endless rain and flooding in the middle of the country.

But sometimes a picture is worth a thousands words, and this before and after photo from Nebraska speaks volumes…

We know that food production in the United States is going to be way below expectations this year.

And as I just showed you, it appears that a shortage of canned vegetables has already begun.

A full-blown crisis has not arrived yet, but perhaps one is a lot closer than many of us had anticipated.

This is a huge story, and I will continue to keep you updated.

end

This ought to get people angry:  Boeing is setting aside 144,000 per ife taken on those two Boeing 737 Max crashes

(zerohedge)

Boeing Thinks A Human Life Is Worth Just $150,000

Two weeks ago, we noted how, after ignoring them for months (presumably at the behest of its legal department), Boeing had decided to dedicate $100 million (roughly 1% of its 2018 revenue) to the families of the victims from the Lion Air and Ethiopian Air crashes. However, that number came with a catch: Some of the money would be used for ‘community development’ and ‘education efforts’.

Boeing

Split among the families of the 346 victims, at $100 million, each family would receive just under $300,000 – a pittance when one considers that this is compensation meant to offset the taking of a human life.

But as it turns out, the families won’t even get that much, because as CNBC reported on Wednesday, Boeing is planning to distribute only $50 million to the families of victims, and will retain Ken Feinberg (famous for being the special master of the US government’s Sept. 11 Victim Compensation Fund) as co-administrator of victims’ fund. The rest will presumably go to these unspecified initiatives that the company has mentioned.

CNBC Now

@CNBCnow

JUST IN: Boeing says it is dedicating $50M of its $100M pledged for “near-term relief” for families of the victims of the Lion Air and Ethiopian Air crashes; company retains Ken Feinberg as co-administrator of victims fund.http://cnbc.com

US Top News and Analysis

CNBC is the world leader in business news and real-time financial market coverage. Find fast, actionable information.

For the record, this breaks down to just $144,508 per human life.

We’re sure the callousness with which Boeing has treated the families of the victims of the two crashes that led to the global grounding of Boeing’s 737 MAX 8 (and exposed serious flaws in Boeing’s safety testing processes and the FAA’s oversight) will make them even more willing to settle the multitude of litigation that the aerospace company is facing.

end
The markets are not going to like this:  Netflix plummets after the company reports a collapse in subscriber growth.
(zerohedge)

Netflix Plummets After Company Reports Collapse In Subscriber Growth, Decline In US Subs

Is the Netflix juggernaut finally dead?

Back in April, when Netflix reported strong Q1 earnings, what surprised most investors was the company’s unexpectedly weak outflook, predicting a sharp slowdown in subscriber growth, and expecting 5.00 paid subscriber.

In retrospect, nobody was prepared for just how bad the final number would be, because moments ago while Netflix reported strong top and bottom line results, it was the collapse in Q2 subscriber growth that is the reason why the stock is plunging over 10% after hours, specifically Netflix reported that in Q2 it added a tiny 2.7 million subs, far below the company’s 5.0 million forecast, and well below the Wall Street consensus estimate of 5.06 million.

First the good news: EPS of 60 cents was above the 56 cents expected, with revenue of $4.92 right on top of the expected $4.93 billion. Additionally, the company reported a rather impressive Q1 EBITDA of $836 million, well above the $584MM in Q1. Of course, if that was the extent of it, NFLX stock would be surging. Looking ahead, Netflix reported that Q3 forecast revenue would be $5.250 8BN, a 31.3% increase Y/Y, which is also above the estimate of $5.2BN, a number which would generate EPS of $1.04.

However, the reason why Netflix is tumbling after hours is because just like one and two quarters ago, the growth story is once again in jeopardy as a result of the company’s surprisingly weak subscriber print: to wit, whereas Wall Street expected Q2 subscribers to rise by 5.06 million, Netflix reported just half this number, or 2.70 million, which in addition to a far weaker than expected 2.825mm intl subs, domestic subs actually declined by 126K in Q2 to 60.1 million, a sharp slowdown from the 9.6 million paid net subscribers added in Q1.

Looking ahead, Netflix now expects total subscribed growth in Q3 to rebound massively from 2.7 million to 7.00 million, rising to 158.56 million, of which the domestic subscribers are expected to increase by 800,000 from a drop of 126,000 in Q2, with international subs rising by 6.2 million to 97.66 million.

Commenting on this optimistic outlook, NFLX said that while its US paid membership was essentially flat in Q2, its expects it to return to more typical growth in Q3, “and are seeing that in these early weeks of Q3. We forecast Q3 global paid net adds of 7.0m, up vs. 6.1m in Q3’18, with 0.8m in the US and 6.2m internationally. Our internal forecast still currently calls for annual global paid net adds to be up year over year. There’s no change to our 13% operating margin target for FY19, up 300 basis points year over year.”

Some more details on why the company believes Q3 will be a turnaround quarter:

Q3 has started with Stranger Things season 3, and the first two weeks of Q3 are strong. In addition to the recently released season 3 of Stranger Things, our second half content slate includes new seasons of La Casa de Papel (Money Heist), The Crown, and the final season of the iconic Orange is the New Black as well as big films like The Irishman from Martin Scorsese and action movie 6 Underground (directed by Michael Bay and starring Ryan Reynolds).

While we don’t doubt the company’s sincere optimism, the fact that it has now disappointed on current or projected subs for three quarters in a row suggests that something may be off with the company’s growth model, and perhaps its recent eagerness to hike prices is coming back to painfully bite it in the ass.

Which brings up the question we asked last quarter: why did Netflix announce a price hike in late Q1, to which we bring up the answer provided by Anthony DiClemente last quarter, who was worried that the market is “pricing in perfection” and wondered if the real story behind the recent price increase is that the company sees revenue coming more from fee increases than subscriber growth, suggesting an end to the company’s unbridled growth trajectory.

Considering the abysmal subscriber growth in Q2 it appears he was right, and the risk is that the price increase alienates even more existing subs, even though the company itself disagreed, saying that price increases in the U.S., Brazil, Mexico and parts of Europe will slow subscriber growth for a brief period, but won’t affect growth in the long run. Well, it now appears the long run may have been affected.

And then there was Netflix’s Free Cash Flow, or rather Free Cash Inferno, which after modestly easing off in Q1 after exploding higher in Q4 of 2018, has once again started to rise, and in Q2 was $593 million, $35 million more than a year ago.

In other words, the company may no longer be growing by leaps and bounds, but at least it continues to burn unprecedented amounts of cash.

All things considered, the fact that NFLX has plunged as much as 12%, sending

end

iv) Swamp commentaries

Pelosi briefly banned from speaking in the house after calling Trump a “racist”

(zerohedge)

Pelosi Briefly Banned From Speaking In The House After Calling Trump “Racist”, Leading To Chaos On House Floor

House Speaker Nancy Pelosi (D-CA) was briefly banned from speaking on the House floor on Tuesday after she made disparaging comments about President Trump’s ‘racist’ behavior, sparking chaos in the chamber.

GOP lawmakers fumed after Pelosi slammed Trump as “xenophobic” for a Sunday tweet in which he told progressive Democrats to “go back” and “fix the totally broken and crime infested places from which they came.”

“How shameful to hear him continue to defend those offensive words, words that we have all heard him repeat, not only about our members, but about countless others,” said Pelosi, adding “”There is no place anywhere for the president’s words, which are not only divisive but dangerous, and have legitimized and increased fear and hatred of new Americans and people of color.

In response to Pelosi’s comments, Rep. Doug Collins (R-GA) claimed that her remarks violated House rules forbidding personal attacks against the president or lawmakers.

After Collins asked Pelosi if she would like to rephrase her comments, Pelosi said she had cleared them with the parliamentarian in advance.

I would like to make a point of order that the gentlewoman’s words are unparliamentary and ask they be taken down,” Collins said.

Rep. Emmanuel Cleaver (D-Mo.), who was presiding over the floor then reminded members “to refrain from engaging in personalities toward the president.” –The Hill

House Majority Leader Steny Hoyer, a Democrat, said “The words used by the gentlewoman from California contained an accusation of racist behavior on the part of the President,” adding “The words should not be used in debate.

Hoyer’s comments technically banned Pelosi from speaking on the House floor for the rest of the day, while the debate over Pelosi’s comments caused the House to come to a standstill as lawmakers debated what to do next.

Rep. Cleaver dramatically ‘abandoned the chair’ and dropped the gavel on the dais while the situation unfolded.

NBC News

@NBCNews

JUST IN: Rep. Cleaver, who had been presiding over the House chamber, declares “I abandon the chair” and drops gavel on the dais as House members await ruling on if Speaker Pelosi’s comments on the president’s tweets will be taken down.

Embedded video

NBC News

@NBCNews

Rep. Cleaver: “We don’t ever, ever want to pass up, it seems, an opportunity to escalate, and that’s what this is. I dare anybody to look at any of the footage and see if there was any unfairness. But unfairness is not enough, because we want to just fight. I abandon the chair.”

Embedded video

Ultimately, Pelosi’s comments were allowed to stand after a motion to strike her comments failed 190-232. Every Republican voted in favor of the motion.

END

This is highly unusual:  Judge Emmett Sullivan is hauling in Michael Flynn’s former lawyers into court and they are being accused of withholding case files

(zerohedge)

Mike Flynn Judge Hauls Former Lawyers Back Into Court; Accused Of Withholding Case Files

A DC federal judge has ordered Michael Flynn’s former attorneys to appear in court next month after Flynn’s current legal counsel claims they haven’t been given the entire case file by the team at Covington & Burling.

Judge Emmet Sullivan, and Obama appointee, scheduled a status conference for August 27 at 11 a.m., and has invited a Senior Legal Ethics Counsel to weigh in on the conversation.

 

“In light of the representations made by defense counsel regarding the delay in receiving the client files, the Court hereby gives notice to the parties of the Court’s intent to invite Senior Legal Ethics Counsel for the District of Columbia Bar to attend the status conference and explain on the record the applicable District of Columbia Rules of Professional Conduct,” wrote Sullivan.

In a filing on Thursday, Flynn’s new attorneys Jesse Binnall, Sidney Powell and William Hodes wrote that they “do not yet have the entire file” from Flynn’s former lawyers and said they had been advised “it will be several weeks before all the information can be transferred.”

Flynn’s attorneys also reiterated that they already have a “massive” amount of files to review — spanning four hard drives that exceed 253 gigabytes of documents — and noted they had identified “crucial and troubling issues that should concern any court” without going into detail. –The Hill

Flynn’s former attorneys have responded, saying they will have the rest of the case files delivered by July 26, per Politico.

Hyperion@hyperion5182

Significant?

Brian Cates@drawandstrike

The fricking judge is asking the SENIOR LEGAL ETHICS COUNSEL for DC to be there for this hearing.

That is highly unusual so yes, it’s significant.

Meanwhile, Flynn’s former attorney testified on Tuesdayagainst Flynn’s former business partner, 67-year-old Bijan Rafiekian, an Iranian-American who has been charged with illegally acting as an unregistered agen of a foreign government.

 

Bijan Rafiekian

Prosecutors called ex-Flynn attorney Robert Kelner as a witness Tuesday at the trial of Bijan Rafiekian, 67, an Iranian-American businessman who was Flynn’s key counterpart in a lobbying and consulting firm the retired Army general opened after leaving government, Flynn Intel Group.

During about two-and-a-half hours on the witness stand in federal court in Alexandria, Va., Kelner appeared to do some damage to Rafiekian by telling jurors that the Flynn associate never shared key information about links between the lobbying work and Turkish government officials.

Kelner also said Rafiekian, better known as Kian, seemed upset by the lawyers’ recommendation in early 2017 that the firm make a retroactive filing about the work Flynn’s firm did to try to build support for the extradition from the U.S. of a dissident Turkish cleric, Fethullah Gulen. –Politico

“My recollection is that he was not happy about it. In part, he was not happy about the suggestion that FIG’s work primarily benefited the Government of Turkey,” said Kelner.

Attorney Robert Barnes raises the question: “Why was Covington firm ever representing Flynn given it knew it might be a material witness in a case related to Flynn? Did the government knowingly profit from this conflict?”

Robert Barnes@Barnes_Law

Why was Covington firm ever representing Flynn given it knew it might be a material witness in a case related to Flynn? Did the government knowingly profit from this conflict? https://politi.co/2JCeynD

Even while serving his 13 month sentence, Epstein was abusing young girls. It is alleged that he settled with his abused girls for millions.

(zerohedge)

Epstein Sexually Abused Girls During Work-Release Jail Sentence; Settled With Accusers For Millions

Jeffrey Epstein sexually abused girls during his 13 month work-release prison sentence during which he was allowed to ‘work’ out of his West Palm Beach office for up to 12 hours a day, six days a week, according to attorney Brad Edwards, who represents some of Epstein’s alleged victims.

During a Tuesday press conference in New York City, Edwards introduced a woman named Courtney Wild, who says Epstein began abusing her when she was 14-years-old, according to Business Insider.

Edwards said during the press conference that he raised the accusation to challenge the idea that Epstein was a model citizen while in jail. Edwards also said that Epstein was in his office most of the day during his 18-month sentence, of which he served 13 months, and that he had female visitors under the age of 21.

Edwards said Epstein had sexual interactions with the female visitors that constituted abuse and were similar in nature to the abuses described in the indictment and charges Epstein faces in court, which are one count of sex trafficking of minors and one count of conspiracy to engage in sex trafficking of minors. –Business Insider

Wild appeared in court on Monday during Epstein’s bail hearing, saying “I was sexually abused by Jeffrey Epstein starting at the age of 14,” while standing just feet from the pedophile money manager.

Meanwhile, Bloomberg reveals that Epstein paid millions of dollars to silence accusers – including Wild.

Some of Epstein’s civil settlements exceeded $1 million, according to a person with knowledge of the matter. Three were for a total of $5.5 million, court records show. The total amount of Epstein’s civil payments is unknown, but it’s likely a small fraction of the $559 million that prosecutors say Epstein has claimed as his net worth.

More than two dozen lawsuits were ultimately resolved in private settlements after Epstein signed a non-prosecution agreement in 2008 that allowed him and four accomplices to avoid federal charges. –Bloomberg

Epstein’s attorneys also used aggressive tactics with the women, according to the report – interviewing friends, neighbors and employers in abusive ways. The girls were grilled about their lives – including criminal records, drug use, and in one case – a history of abortions.

“Does it give you any, any emotional pain that you aborted three fetuses?” asked Epstein attorney Mark Luttier. “Wouldn’t you agree with me that aborting three fetuses would be far more traumatic than giving a man a massage in the nude?” he asked.

Meanwhile, Epstein’s publicist fed stories to the media “impugning the credibility of the victims” which suggested that their “allegations of abuse were made solely to extract money.”

According to the New York Post, Epstein also approached New York City publicist R. Couri Hay several years ago to ‘beg for help with his image,’ allegedly saying “I don’t want ‘billionaire pervert’ to be the first line of my obituary.”

Of note, Epstein is not a billionaire.

Hay’s advice? Go to a mental-health facility for a year, donate to charity, meet the Pope and go meet with his rabbi. Now that he faces up to 45 years in the slammer, he may also want to engage a prison coach.

v) King report/Courtesy of Chris Powell of GATA which includes the major swamp stories/major economic stories.

Q2 Big bank results, June Retail Sales and Industrial Production should alarm Fed doves.

Interest income declined at JP Morgan and Wells Fargo.  Goldman generated its earnings from prop trading.  We wonder how much of the prop trading profit is beneficial marks on Tier 2 & 3 assets.

JPM Trading Revenues Miss across the Board, Cuts Net Interest Income Outlook; Shares Slide   https://www.zerohedge.com/news/2019-07-16/jpmorgan-trading-revenues-miss-across-board-cuts-net-interest-income-outlook

Wells’ Interest Income Tumbles in Urgent Warning How Fed Will Cripple US Banks

https://www.zerohedge.com/news/2019-07-16/wells-interest-income-tumbles-urgent-warning-how-fed-will-cripple-us-bank

Goldman Prop Trading Saves the Day as FICC, iBanking Revenues Tumble; Average Wage Drops

https://www.zerohedge.com/news/2019-07-16/goldman-prop-trading-saves-day-ficc-ibanking-revenues-tumble-average-wage-drops

Die Welt’s @Schuldensuehner: Additional ECB rate cuts would further hurt European banks. Acc to Goldman, a 20bp cut could lead to an aggregate €5.6bn (-6%) profit cut for 32 Euro banks under coverage. If rates were cut by 100bp, ¼ would turn loss-making. For Goldman tiering becomes critical…

If the Fed slashes rates in the coming quarters, US banks and retirees will suffer.

Now we know why Jamie Dimon has been doing an inordinate amount of virtue signaling.  Oh, and after Jamie clutched his pearls over social issues and donated millions of JPM cash to ‘causes’, he decided to dismiss 1000 JPM workers in Q2.  Doesn’t charity begin at home?

June US Retail Sales increased 0.4%; 0.2% was expected.  Ex-Auto sales increased 0.4%; 0.1% was expected.  Ex-Auto & Gas sales surged 0.7%, because tumbling gasoline prices weighed on retail sales.  With gasoline prices up double digits since mid-June, headline retail sales could be very strong for July.

June Industrial Production was unchanged with +0.1% expected.  However, manufacturing production increased 0.4%; 0.3% was expected.  Stronger than expected auto production appeared in June.

ESUs chopped sideways on Tuesday until the pre-NYSE open rally appeared.  They topped at 8:00 ET.  ESUs then fell from 3021.75 to 3014 at NYSE open.  Traders, of course, bought the opening dip.

The first rally after the opening dip ended in ten minutes.  ESUs fell back near their opening low.  Another rally appeared.  It ended within 21 minutes.  Late in the morning Trump bombed stocks.

OAN’s @GretaLWall: DOW falls from record high after President Trump told Cabinet the US “still has a long way to go” on trade talks with China, threatened to impose tariffs on remaining $325B of Chinese goods if the two sides cannot come to a deal.

Powell generated a short-lived rally late in the noon hour when he suggested that the Fed should cut rates because of global turmoil.  Street breezes keep whispering ‘Deutsche Bank’.

Bank Run: Deutsche Bank Clients Are Pulling $1 Billion A Day

According to Bloomberg Deutsche Bank clients, mostly hedge funds, have started a “bank run” which has culminated with about $1 billion per day being pulled from the bank…

https://www.zerohedge.com/news/2019-07-16/bank-run-deutsche-bank-clients-are-pulling-1-billion-day

Powell speaking/sucking up in Paris: “We have seen how monetary policy in one country can influence economic and financial conditions in others through financial markets, trade, and confidence channels. Pursuing our domestic mandates in this new world requires that we understand the anticipated effects of these interconnections and incorporate them into our policy decision making.”…

https://www.cnbc.com/2019/07/16/feds-powell-says-uncertainties-have-increased-chances-of-a-rate-cut.html

Powell: “Uncertainties about this outlook have increased, however, particularly regarding trade developments and global growth,”

https://www.bloomberg.com/news/articles/2019-07-16/powell-reiterates-fed-will-respond-to-mounting-downside-risks

Chicago Fed President Evans fomented an afternoon rally when he said he was okay with a 50bp cut.

Unfortunately for traders that bought on Evans’ remarks, ESUs and stocks tumbled during the final 18 minutes of trading.  It was an ugly day for stocks.  ESUs closed near the low of the day.

The dollar rallied smartly.  The pound tumbled on reports that a ‘no deal’ Brexit was probable.  The other factor in the dollar rally was the Street had to recalibrate the odds of Fed rate cuts.  The 100% odds of a 25bp rate cut on July 31 fell to 76.5.  The odds of a 50bp rate cut on July 31 are now 23.5%.

@realDonaldTrump: “Billionaire Tech Investor Peter Thiel believes Google should be investigated for treason. He accuses Google of working with the Chinese Government.”… A great and brilliant guy who knows this subject better than anyone! The Trump Administration will take a look!

@GaryKaltbaum: THE MORONIC FED STATEMENT OF THE DAY: Fed’s Kaplan says any potential rate cut should be limited as too much stimulus could fuel financial imbalances! Dude, that left the building 10 years ago. $13 tril negative yield debt, junk yielding negative. I could go on.

@realDonaldTrump: The Democrat Congresswomen have been spewing some of the most vile, hateful, and disgusting things ever said by a politician in the House or Senate, & yet they get a free pass and a big embrace from the Democrat Party. Horrible anti-Israel, anti-USA, pro-terrorist & public… shouting of the F…word [Tlaib called DJT a “M-Fer”], among many other terrible things, and the petrified Dems run for the hills. Why isn’t the House voting to rebuke the filthy and hate laced things they have said? Because they are the Radical Left, and the Democrats are afraid to take them on. Sad!…

    Get a list of the HORRIBLE things they have said. Omar is polling at 8%, Cortez at 21%. Nancy Pelosi tried to push them away, but now they are forever wedded to the Democrat Party. See you in 2020!

The US House went banana republic on Tuesday. Countless rules were broken by Pelosi and others in their zest to call Trump a ‘racist’.

Dem-led House formally condemns Trump remarks deemed ‘racist,’ after dramatic floor fight over Pelosi – The moment was largely overshadowed by a dramatic floor fight earlier in the day that ended with House Speaker Nancy Pelosi ruled out of order for a breach of decorum.

    The unexpected mayhem in Congress, which briefly resulted in the revocation of Pelosi’s speaking privileges on the House floor, left commentators and lawmakers stunned. “So, Democrats vote to break House rules and decorum, so that they can call Trump out on decorum. Surreal,” wrote Wall Street Journal columnist Kimberley Strassel…

     Fox News is told Collins used House Rule XVII, Clause 1(B). That rule requires that remarks on the floor “be confined to the question under debate, avoiding personality.”…

     As the consultation dragged on, Pelosi then appeared to leave the House floor, which itself constituted a violation of House Rules when someone’s words were taken down. Members are supposed to be seated on the floor when a member’s words are stricken.

    The scene then became even more bizarre when the chair, Rep. Emanuel Cleaver, D-Mo., told representatives after the lengthy huddle that he was trying to make a fair ruling as to whether Pelosi had broken House rules governing decorum, but people weren’t cooperating…

     Cleaver simply declared, “I abandon the chair,” and left — a moment with no apparent precedent in modern congressional history…

     After the final vote on the resolution Tuesday night, Texas Rep. Al Green, a Democrat, reintroduced articles of impeachment against Trump. They were not expected to pass.

https://www.foxnews.com/politics/house-dems-formally-condemn-trumps-racist-remarks-floor-fight-pelosi

The WSJ’s @KimStrassel: I do wonder if liberals understand the real harm of diluting the word “racist” to the point of little or no meaning

New documents revisit questions about Rep. Ilhan Omar’s marriage history

New investigative documents released by a state agency have given fresh life to lingering questions about the marital history of Rep. Ilhan Omar and whether she once married a man — possibly her own brother to skirt immigration laws… [This is why DJT is tying Omar to Pelosi.]

http://www.startribune.com/new-documents-revisit-questions-about-rep-ilhan-omar-s-marriage/511681362/

While Trump tormented Pelosi and the Dems’ Fab Four as well as the media, out of the spotlight, AG Barr invoked a multilateral treaty [8 US Code §1158(a)(2)(A)] that declares Mexico a safe third country.  This means all Central American asylum seekers will be sent legally to Mexico for their hearings. Because this is a treaty, no court has any jurisdiction over the AG’s determination as stipulated in the treaty.  8 U.S. Code § 1158. Asylum  https://www.law.cornell.edu/uscode/text/8/1158

John Solomon: FBI’s spreadsheet puts a stake through the heart of Steele’s dossier

Over months of work, FBI agents painstakingly researched every claim Steele made about Trump’s possible collusion with Russia, and assembled their findings into a spreadsheet-like document.

    Multiple sources familiar with the FBI spreadsheet tell me the vast majority of Steele’s claims were deemed to be wrong, or could not be corroborated even with the most awesome tools available to the U.S. intelligence community. One source estimated the spreadsheet found upward of 90 percent of the dossier’s claims to be either wrong, nonverifiable or open-source intelligence found with a Google search…  https://thehill.com/opinion/white-house/453384-fbis-spreadsheet-puts-a-stake-through-the-heart-of-steeles-dossier#.XS5gC_aFRC0.twitter

‘Doomsday scenario’: Cash shortage squeezes huge Dem field – Nearly half of Democratic candidates spent more campaign cash than they raised in the second quarter of the year.

    The disclosures show a yawning gap growing between the Democratic primary’s five front-runners — who combined to rake in about $100 million — and a collection of rivals…

https://www.politico.com/story/2019/07/16/2020-democrats-money-shortage-fec-1416133

@washingtonpost: Joe Biden: I’ll challenge Trump to do push-ups on stage if he makes fun of my age or mental state [Biden channeling Jack Lalanne – pretty much certifies his mental state.]

end

It was Catherine Fitts who first discovered 21 trillion dollars missing from the Dept of Defense.  Then this has been verified by Rob Kirby and it is this 21 trillion dollars that is sloshing around USA markets. The money is off balance sheet

(courtesy Greg Hunter/Rob Kirby)

$21 Trillion Missing Biggest Story on Planet – Rob Kirby

 

By Greg Hunter On July 17, 2019

Macroeconomic analyst Rob Kirby says you may not be hearing much about it from the globalist controlled propaganda of the mainstream media (MSM), but the “$21 trillion in ‘missing’ U.S. federal money is still the biggest story on the planet.” Kirby contends, “It’s the biggest story ever because it explains so much of what is going on in our financial reality. . . . Lots of people in my circles talk about there being a lack of collateral, which is a lack of government bonds in the marketplace. They refer to that as a lack of collateral; yet, we see equity markets making new highs. We see Bitcoin making new highs. We’ve even seen the sleepy precious metals market get some legs and make moves upward in recent months. . . . There is no shortage of money anywhere globally, and that’s because of the $21 trillion in ‘dark money’ being fed into the system while the unwanted U.S. debt is being purchased and memory holed. . . . It’s paradoxical, but you have a lack of collateral and too many dollars.”

Kirby says, “Nobody wants to believe what is happening” with trillions of extra printed dollars sloshing around the planet, but that does not mean this will not end badly. Kirby is predicting big inflation, and even hyperinflation is coming as a result of all the digital fiat cash. Kirby says, “In a financial sense, people are going to be screwed worse than they understand. Most people cannot believe these most heinous financial crimes against humanity have already happened. . . . At some point, I see a dramatic reduction in the living standard coming to everybody in the Western world. Let’s just say it will be all countries that have their boat tied to the U.S. dollar because the dollar is being rejected now. We are seeing evidence of it with the rejection of U.S. government debt and reduced participation of U.S. government debt auctions.”

Kirby lays out what is coming and says, “When the dollars start coming home, there will be inflation. We have seen the rejection of U.S. debt, but the dollars are being recycled into other things like Bitcoin and equities. There is going to come a point where the dollars are going to come home to America, and people are going to start demanding real stuff. . . . I can envision a day when there might be a domestic dollar and an international dollar, and there might be two values assigned to the domestic and international dollar. Whether this happens or not, the purchasing power of the dollar is going to be diminished as the story about the “missing” $21 trillion gains traction around the world.”

Join Greg Hunter as he goes One-on-One with Rob Kirby, founder of KirbyAnalytics.com.

-END-

 

well that about does it for tonight

I will see you, Thursday night.

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