AUGUST 6/BANKERS CALL FOR A SHORT SQUEEZE ON THE EQUITY MARKETS BUT FORGOT TO WHACK GOLD AND SILVER: GOLD UP $7.85 TO $1472.40//SILVER UP 5 CENTS TO $16.44//CHINA RAISES ITS FIX A TINY TINY BIT AND THAT SENDS THE DOW HIGHER BY 300 PLUS POINTS???CHINA LABELLED A CURRENCY MANIPULATOR BY TRUMP////MAINLAND CHINA SENDS A STERN WARNING TO HONG KONG THAT THEY ARE COMING////OUT OF NOWHERE POLAND ADDS A MONSTROUS 100 TONNES OF GOLD TO THEIR OFFICIAL RESERVES: WHERE DID THEY GET IT?//

GOLD:$1472.40  UP $7.85(COMEX TO COMEX CLOSING

 

 

 

 

 

 

 

Silver: $16.44 UP 5 CENTS  (COMEX TO COMEX CLOSING)/

 

 

 

 

 

 

 

 

 

Closing access prices:

 

 

Gold : $1474

 

silver:  $16.44

with all that manipulation going on in the markets, I think the boys forgot about gold and silver
it should have been whacked but lo and behold they just could not do it:

we are coming very close to a commercial failure!!

 

 

 

 

 

 

COMEX DATA

 

 

 

 

 

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

today RECEIVING 32/92

EXCHANGE: COMEX
CONTRACT: AUGUST 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,464.600000000 USD
INTENT DATE: 08/05/2019 DELIVERY DATE: 08/07/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
118 H MACQUARIE FUT 17
661 C JP MORGAN 35
686 C INTL FCSTONE 39 4
690 C ABN AMRO 19 3
737 C ADVANTAGE 27 6
800 C MAREX SPEC 7 1
880 H CITIGROUP 26
____________________________________________________________________________________________

TOTAL: 92 92
MONTH TO DATE: 4,381

NUMBER OF NOTICES FILED TODAY FOR  JULY CONTRACT: 92 NOTICE(S) FOR 9200 OZ (0.2861 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  4381 NOTICES FOR 438100 OZ  (13.626 TONNES)

 

 

 

SILVER

 

FOR JULY

 

 

61 NOTICE(S) FILED TODAY FOR 305,000  OZ/

 

total number of notices filed so far this month: 1078 for   5,390,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 11,898 DOWN 50 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 11,696 DOWN 127

 

 

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI ROSE BY A SMALL  SIZED 544 CONTRACTS FROM 237,890 UP TO 238,434 WITH THE 12 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 AUGUST, 1649 FOR SEPT, AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1649 CONTRACTS. WITH THE TRANSFER OF 1649 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 1649 EFP CONTRACTS TRANSLATES INTO 8.245 MILLION OZ  ACCOMPANYING:

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

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

22.605 MILLION OZ  STANDING FOR JULY

7.155   MILLION OZ INITIAL STANDING IN AUGUST.

 

WE HAD SOME COVERING OF SHORTS AT THE SILVER COMEX LAST NIGHT AND SOME SPREADING ACCUMULATION.

MODUS OPERANDI OF THE CORRUPT BANKERS AS TO HOW THEY HANDLE THEIR SPREAD OPEN INTERESTS:

 

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 SWITCH 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 NOW INTO THE NON ACTIVE DELIVERY MONTH OF AUGUST HEADING TOWARDS THE VERY ACTIVE DELIVERY MONTH OF SEPTEMBER FOR SILVER.

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

6255 CONTRACTS (FOR 4 TRADING DAYS TOTAL 6255 CONTRACTS) OR 31.275 MILLION OZ: (AVERAGE PER DAY: 1563 CONTRACTS OR 7.818 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY:  31.275 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 4.47% OF ANNUAL GLOBAL PRODUCTION (EX CHINA EX RUSSIA)*  JUNE’S 345.43 MILLION OZ IS THE SECOND HIGHEST RECORDED ISSUANCE OF EFP’S AND IT FOLLOWED THE RECORD SET IN APRIL 2018 OF 385.75 MILLION OZ.

ACCUMULATION IN YEAR 2019 TO DATE SILVER EFP’S:          1358.60   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

JULY 2019   TOTAL EFP ISSUANCE:                                                175.74 MILLION OZ

RESULT: WE HAD A SMALL SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 622, WITH THE 12 CENT GAIN IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  STRONG SIZED EFP ISSUANCE OF 1649 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) .

 

TODAY WE GAINED A VERY STRONG  SIZED: 2271 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 1649 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 544  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 12 CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $16.39 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY!! 

 

 

In ounces AT THE COMEX, the OI is still represented by JUST OVER 1 BILLION oz i.e. 1.192 BILLION OZ TO BE EXACT or 170% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 61 NOTICE(S) FOR 305,000 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 22.605 MILLION OZ; AUGUST 7.155 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 COMEX OPEN INTEREST ROSE BY AN ATMOSPHERIC AND CRIMINALLY SIZED 13,585 CONTRACTS, TO 599,832 ACCOMPANYING THE STRONG  $18.85 PRICING GAIN WITH RESPECT TO COMEX GOLD PRICING YESTERDAY// /THE SPREADING ACCUMULATION HAS NOW COMMENCED FOR SILVER..AS THE LIQUIDATION PHASE FOR COMEX OI GOLD HAS NOW STOPPED..(THUS THE GAIN IN OI IN GOLD IS CONSIDERABLE SANS THE SPREADERS.)

 

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A VERY STRONG SIZED 11,685 CONTRACTS: AUGUST 2019: 0 CONTRACTS, DEC>  11,685 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 599,832,,.  ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE AN ATMOSPHERIC AND CRIMINALLY SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 25,271 CONTRACTS: 13,585 CONTRACTS INCREASED AT THE COMEX  AND 11,685 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 25,271 CONTRACTS OR 2,527,100 OZ OR 78.603 TONNES.  YESTERDAY WE HAD A STRONG GAIN OF $18.85 IN GOLD TRADING….AND WITH THAT GOOD GAIN IN  PRICE, WE  HAD A GIGANTIC GAIN IN GOLD TONNAGE OF 78.603  TONNES!!!!!! THE BANKERS WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER DESPERATE TO CONTAIN THE PRICE RISE.

 

 

 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF AUGUST : 60,654 CONTRACTS OR 6,065,400 oz OR 188.65 TONNES (4 TRADING DAY AND THUS AVERAGING: 15,163 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 4 TRADING DAY IN  TONNES: 188.65 TONNES

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

THUS EFP TRANSFERS REPRESENTS 188.65/3550 x 100% TONNES =5.29% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     3699.91  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 STRONG SIZED INCREASE IN OI AT THE COMEX OF 13,585 WITH THE HUGE  PRICING GAIN THAT GOLD UNDERTOOK YESTERDAY($18.85)) //.WE ALSO HAD  A HUGE SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 11,685 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 11,685 EFP CONTRACTS ISSUED, WE  HAD AN ATMOSPHERIC  AND CRIMINALLY SIZED GAIN OF 25,271 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

11,685 CONTRACTS MOVE TO LONDON AND 13,585 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 78.603 TONNES). ..AND THIS ATMOSPHERIC INCREASE OF  DEMAND OCCURRED WITH THE HUGE GAIN IN PRICE OF $18.85 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX. WE HAVE NOW STOPPED WITH SPREADING LIQUIDATION OF GOLD OI CONTRACTS AND COMMENCED WITH SILVER OI ACCUMULATION 

 

 

 

 

 

we had:  495 notice(s) filed upon for 49500 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

WITH GOLD UP $7.85 TODAY//(COMEX-TO COMEX)

late yesterday a deposit of:4.50 tonnes

 

INVENTORY RESTS AT 835.16 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 5 CENTS TODAY:

LATE LAST NIGHT: A HUGE PAPER DEPOSIT OF 2.34 MILLION OZ OF PAPER SILVER ADDED TO THE SLV

THEN THIS AFTERNOON: A MONSTROUS: 2.994 MILLION OZ PAPER DEPOSIT

A MASSIVE FRAUD

 

 

/INVENTORY RESTS AT 361.907 MILLION OZ.

 

 

 

 

 

 

end

 

OUTLINE OF TOPICS TONIGHT

 

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in SILVER ROSE BY A SMALL SIZED 544 CONTRACTS from 237,890 UP TO 238,434 AND CLOSER TO THE NEW COMEX RECORD SET LAST IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  1 1/3 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.  AS YOU CAN SEE, WE HAVE RECORD HIGH OPEN INTERESTS IN SILVER  ACCOMPANIED BY A CONTINUAL LOWER PRICE WHEN THAT RECORD WAS SET…..THE SPREADERS HAVE COMMENCED THEIR ACCUMULATION OF OPEN INTEREST CONTRACTS IN SILVER AND STOPPED THE LIQUIDATION OF THE SPREADERS IN GOLD

 

 

 

 

EFP ISSUANCE: 

OUR CUSTOMARY MIGRATION OF COMEX LONGS CONTINUE TO MORPH INTO LONDON FORWARDS  AS OUR BANKERS USED THEIR EMERGENCY PROCEDURE TO ISSUE:

 

FOR AUGUST: 0, FOR SEPT. 1649  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1649 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 544  CONTRACTS TO THE 1649 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A VERY STRONG SIZED GAIN OF 2193 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 10.965 MILLION OZ!!! AND YET WE ALSO HAVE A STRONG DEMAND FOR PHYSICAL AS WE WITNESSED A FINAL STANDING OF GREATER THAN 30 MILLION OZ FOR JULY, A STRONG 7.475 MILLION OZ FOR AUGUST..  A HUGE 39.505  MILLION OZ  STANDING FOR SILVER IN SEPTEMBER… OVER 2 million  OZ STANDING FOR THE NON ACTIVE MONTH OF OCTOBER.,  7.440 MILLION OZ FINALLY STANDING IN NOVEMBER.  21.925 MILLION OZ STANDING IN DECEMBER , 5.845 MILLION OZ STANDING IN JANUARY. 2.955 MILLION OZ STANDING IN FEBRUARY,  27.120 MILLION OZ FOR MARCH., 3.875 MILLION OZ FOR APRIL  18.765 MILLION OZ FOR MAY  NOW 2.660 MILLION OZ FOR JUNE WITH JULY AT 22.605 MILLION OZ ;AUGUST AT 7.115 MILLION OZ//

 

 

RESULT: A SMALL SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 12 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// FRIDAY. WE ALSO HAD A STRONG SIZED 1649 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

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

 

 

(report Harvey)

.

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 43.94 POINTS OR 1.56%  //Hang Sang CLOSED DOWN 175.08 POINTS OR 0.67%   /The Nikkei closed DOWN 134.98 POINTS OR 0.65%//Australia’s all ordinaires CLOSED DOWN 2.45%

/Chinese yuan (ONSHORE) closed UP  at 7.0313 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED UP // LAST AT 7.0313 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.0691 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

 

3b) REPORT ON JAPAN

3C  CHINA

i)Very strange!!  China has been manipulating its currency but not southbound but northbound..keeping it higher than it ought to be.  So when China tries to let market forces determine its value, the USA labels China a currency manipulator.

(zerohedge)

ii)This man ought to know the true value of the yuan and he believes that it could sink another 40%

(Kyle Bass)

iii)China show some control as they fix the yuan a lot stronger than market pundits thought. This occurred a few hours after Trump labels China as a currency manipulator.  China has been a manipulator for quite some time, the problem is that they have manipulated their currency upwards to keep the game going

(zerohedge)

iv)More escalation against China as Pence is going to sanction top Chinese officials over human rights abusezerohedge)

v)Michael Every discusses the yuan devaluation and what we must be cognizant of in the coming days

(Michael Every/Rabobank)

vi)I do not look the looks of this:  Beijing warns Hong Kong protesters will be punished…military intervention is possible

(zerohedge)

4/EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

IRAN/CHINA

China;s largest oil company is caught importing Iranian crude. This may be problematic as its parent has considerable assets in the uSA and has it’s stock,  Petro China trades on the NYSE

(zerohedge)

6.Global Issues

 

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

i)India

The plunge in the yuan causes the Indian rupee to fall as well as many believe there will be global devaluations everywhere.  The Rupee descended further into negative territory on the Kashmir chaos\

(zerohedge)

ii)Zimbabwe

Zimbabwe now in total collapse

(zerohedge)

9. PHYSICAL MARKETS

i)The Swiss central bank was at it again, by trying to contain the rise of the Swiss Franc

(Bloomberg)

ii)Chinese authorities decided to let the yuan slide to let the world be aware of slowing growth and Trump’s tariffs

(Reuters)

iii)The irony is immense here:  the USA denounces China for withdrawing its central bank support for its currency.  The whole idea for currency movements should be just market forces and no government support or manipulative practices.

(Wall Street Journal/GATA)

iv)Gold and silver investors should attend this years conference in New Orleans

(GATA)

v)Even though China has been labeled a currency manipulator after it removed its central ban support for the currency…last night they fixed their yuan at higher values

(Bloomberg/GATA)

vi)Now Trump imposes a total freeze on all Venezuelan government assets housed in the USA

(Reuters/GATA)

vii)Russia adds 38.7 tonnes last month.  It produces around 25 tonnes per month so Russia went shopping for around 14 tones. What is fascinating is Poland.  Out of nowhere, these guys bought 100 tonnes of gold.

(courtesy iexpats.com/Jim Atkins)

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

Early last night turmoil in Asia.  That ended once China fixed its yuan currency higher

(zerohedge)

b)MARKET TRADING/USA/MORNING

stocks rebound as Chinese authorities state that they will not use the yuan as a weapon against Trumps’ tariffs. Do not believe them. They will let the yuan fall especially if they allow market forces to determine its value

(zerohedge)

ii)Market data/USA

a)Labour market slowing down as job openings drop to a 4 month low

(zerohedge)

b)Another good indicator that the economy in the uSA is faltering in total contrast to what the clowns at the Fed are seeing:

traffic at the railroads are signalling a broad industrial showdown.
(zerohedge)

iii) Important USA Economic Stories

Goldman Sachs, has now capitulated and believes that:

1. no trade deal before the 2020 election

2 expect 3 rate cuts

3. turmoil in the markets

(goldman Sachs)

iv) Swamp commentaries)

a)Google has too much control.  They no doubt will be doing their part trying to block Trump from being elected in 2020

(zerohedge)

b)this is not April fools…Peter Strzok sues the Dept of Justice and FBI over his firing

(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 ROSE BY AN ATMOSPHERIC AND CRIMINALLY SIZED 13,585 CONTRACTS TO A LEVEL OF 599,832 ACCOMPANYING THE HUGE GAIN OF $18.85 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 11,685 EFP CONTRACTS WERE ISSUED:

 FOR AUGUST; 0 CONTRACTS: DEC: 11,685   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  11,685 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: 28,176 TOTAL CONTRACTS IN THAT 11,685 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A HUMONGOUS SIZED 13,585 COMEX CONTRACTS.  THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD TRYING TO CONTAIN THE PRICE RISE. 

 

NET GAIN ON THE TWO EXCHANGES ::  25,271 CONTRACTS OR 2,527,100 OZ OR 78.603 TONNES.

 

We are now in the  active contract month of AUGUST and here the open interest stands at 2898 CONTRACTS as we LOST 475 contract.  We had 495 notices filed yesterday so we GAINED 20 contracts or 2000 oz of gold that will stand for delivery AS THE CROOKS TRY THEIR LUCK IN FINDING METAL ON THIS SIDE OF POND. THEY HAVE NEGATED ACCEPTING A FIAT BONUS IF THEY DID MORPH OVER TO LONDON. QUEUE JUMPING RETURNS TO THE GOLD COMEX.

 

The next non active month is September and here the OI ROSE by 301 contracts UP TO 4340.  The next active delivery month is October and here the OI ROSE by 2248 contracts UP to 45,875.

 

 

TODAY’S NOTICES FILED:

WE HAD 92 NOTICES FILED TODAY AT THE COMEX FOR  9200 OZ. (0.2861 TONNES)

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total COMEX silver OI ROSE BY A SMALL SIZED 544 CONTRACTS FROM 237,890 UP TO 238,434 (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 12 CENT GAIN IN PRICING.//YESTERDAY.

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF AUGUST.  HERE WE HAVE 414 OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 11 CONTRACTS.  WE HAD 66 NOTICES FILED YESTERDAY SO WE GAINED A FULL 55 CONTRACTS OR AN ADDITIONAL 255,000 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..  THE NEXT BIG ACTIVE DELIVERY MONTH AFTER AUGUST IS SEPT AND HERE THE OI FELL BY 727 CONTRACTS DOWN TO 154,016 CONTRACTS. OCTOBER RECEIVED ANOTHER 6 CONTRACTS TO STAND AT 55.  NEXT ACTIVE DELIVERY MONTH IS DECEMBER AND HERE THE OI RISES BY 1007 CONTRACTS UP TO 52,391.

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 61 notice(s) filed for 305,000 OZ for the AUGUST, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY: 373,535  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  562,862  contracts

 

 

 

 

 

INITIAL standings for  AUGUST/GOLD

AUGUST 6/2019

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 oz

 

 

 

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
92 notice(s)
 9200 OZ
(0.2861 TONNES)
No of oz to be served (notices)
2806 contracts
(280,600 oz)
8.727 TONNES
Total monthly oz gold served (contracts) so far this month
4381 notices
438100 OZ
13.626 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

 

we had 0 dealer entry:

We had 0 kilobar entries

 

 

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

 

we had 0 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into everybody else: nil

 

 

 

total gold deposits: nil  oz

 

very little gold arrives from outside/

Today: zero amount  arrived  

we had 0 gold withdrawal from the customer account:

 

 

 

total gold withdrawals; nil  oz

 

 

i) we had 0 adjustment today
FOR THE AUGUST 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 92 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 35 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 AUGUST /2019. contract month, we take the total number of notices filed so far for the month (4381) x 100 oz , to which we add the difference between the open interest for the front month of  AUGUST. (2898 contract) minus the number of notices served upon today (92 x 100 oz per contract) equals 718,700 OZ OR 22.35 TONNES) the number of ounces standing in this active month of AUGUST

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

No of notices served (4381 x 100 oz)  + (2898)OI for the front month minus the number of notices served upon today (92 x 100 oz )which equals 718,700 oz standing OR 22.35 TONNES in this  active delivery month of AUGUST.

We GAINED 20 contracts or an additional 2000 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 16.013 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 22.35  TONNES OF GOLD STANDING// JUDGING BY THE HUGE SIZE OF THE COMEX NOTICES FILED TODAY, IT LOOKS LIKE SOMEBODY IS WILLING TO TAKE ON THE CROOKS AT THE COMEX.

 

 

 

total registered or dealer gold:  514,823.353 oz or  16.013 tonnes 
total registered and eligible (customer) gold;   7,782,437.492 oz 242.06 tonnes

 

IN THE LAST 34 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 AUGUST

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
AUGUST 6 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 600,251.286 oz
CNT

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
nil oz
No of oz served today (contracts)
61
CONTRACT(S)
(305,000 OZ)
No of oz to be served (notices)
353 contracts
 1,765,000 oz)
Total monthly oz silver served (contracts)  1078 contracts

5,390,000 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

 

 

 

*** 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:  nil  oz

 

we had 1 withdrawals out of the customer account:

 

 

i) Out of CNT: 600,251.286 oz

 

 

 

 

 

 

total 600,251.286  oz

 

we had 1 adjustment :

i) Out of CNT: 1,284,755.370 oz was adjusted out of the dealer account of CNT and this landed into the customer account of CNT

 

total dealer silver:  91.954 million

total dealer + customer silver:  310,915 million oz

 

 

The total number of notices filed today for the AUGUST 2019. contract month is represented by 61 contract(s) FOR 305,000 oz

To calculate the number of silver ounces that will stand for delivery in AUGUST, we take the total number of notices filed for the month so far at 1078 x 5,000 oz = 5,390,000 oz to which we add the difference between the open interest for the front month of AUGUST. (414) and the number of notices served upon today 61 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the AUGUST/2019 contract month: 1078 (notices served so far) x 5000 oz + OI for front month of AUGUST (414)- number of notices served upon today (61)x 5000 oz equals 7,155,000 oz of silver standing for the AUGUST contract month.

WE GAINED A STRONG 55 CONTRACTS  AS THE DEALERS BYPASSED THOSE STANDING TRYING TO GRAB WHATEVER SILVER THEY CAN. WE THUS HAVE AN ADDITIONAL 55 CONTRACTS OR 255,000 ADDITIONAL OZ STAND FOR DELIVERY ON THIS SIDE OF THE POND. THESE GUYS REFUSED AN OFFER FROM THE BANKERS TO ROLL TO A LONDON BASED FORWARD AND THEY ALSO NEGATED A FIAT BONUS FOR NOT ACCEPTING THIS CROOKED CONTRACT.

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 61 notice(s) filed for 305,000 OZ for the AUGUST, 2019 COMEX contract for silver

 

 

 

 

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  78,291 CONTRACTS (we had considerable spreading activity..accumulation

 

CONFIRMED VOLUME FOR YESTERDAY: 124,793 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 124,793 CONTRACTS EQUATES to 623 million  OZ 89.1% OF ANNUAL GLOBAL PRODUCTION OF SILVER..makes sense!!

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

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

 

end

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

 

NPV for Sprott 

1. Sprott silver fund (PSLV): NAV FALLS TO -.25% ((AUGUST 6/2019)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -1.57% to NAV (AUGUST 6/2019 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/

(courtesy Sprott/GATA)

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

NAV 14.53 TRADING 14.14/DISCOUNT 2.66

END

And now the Gold inventory at the GLD/

AUGUST 6.2019: WITH GOLD UP $7.85 A STRONG DEPOSIT OF 4.50 TONNES OF PAPER GOLD INTO THE GLD LATE LAST NIGHT/INVENTORY RESTS AT 835.16 TONNES

AUGUST 5/2019//WITH GOLD UP $18.80/A STRONG DEPOSIT OF 2.94 TONNES OF PAPER GOLD INTO THE GLD/INVENTORY RESTS AT 830.76 TONNES.

AUGUST 2/2019: WITH GOLD UP $25.20: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 827.82 TONNES

AUGUST 1/2019: WITH GOLD DOWN $4.90 TODAY: TWO TRANSACTIONS: i) A PAPER WITHDRAWAL OF 1.47 TONNES (USED IN THE RAID THIS MORNING)/ and ii) A PAPER DEPOSIT OF 4.40 TONNES THIS AFTERNOON!/INVENTORY RISE TO 827.82 TONNES

JULY 31/WITH GOLD DOWN 3.90 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 824.89 TONNES

JULY 30//WITH GOLD UP $9.00 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 824.89 TONNES

JULY 29/WITH GOLD UP $1.00: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 6.75 TONNES INTO THE GLD INVENTORY///INVENTORY RISES TO 824.89 TONNES

JULY 26/WITH GOLD UP $4.50: A HUGE INVENTORY WITHDRAWAL OF 4.09 TONNES OF PAPER GOLD LEAVES THE GLD/INVENTORY RESTS AT 818.14 TONNES

JULY 25.2019: WITH SILVER DOWN 19 CENTS: ANOTHER PAPER WITHDRAWAL OF 1.17 MILLION OZ/INVENTORY REST AT 358.213 MILLION OZ

JULY 24…A BIG CHANGE  IN SILVER INVENTORY AT THE SLV: A GAIN OF 1.685 MILLION OZ/INVENTORY RESTS AT 359.383 MILLION OZ

JULY 23/2019: WITH SILVER UP 5 CENTS TODAY: ANOTHER BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.221 MILLION PAPER OZ ADDED INTO THE GLD INVENTORY//INVENTORY RESTS AT 357.698 MILLION OZ////

JULY 22.2019/WITH SILVER UP 21 CENTS TODAY: A MASSIVE  CHANGES IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 8.939 MILLION OZ ADDED TO THE SLV INVENTORY/INVENTORY RESTS AT 355.919 MILLION OZ//

JULY 19/WITH GOLD DOWN $1.00: A MASSIVE  DEPOSIT OF 11.44 TONNES OF PAPER GOLD INTO THE GLD/INVENTORY RESTS AT 814.62

JULY 18/WITH GOLD UP $5.55 TODAY: A BIG PAPER DEPOSIT OF 3.81 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 803.18 TONNES

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

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

AUGUST 6/2019/ Inventory rests tonight at 835.16 tonnes

 

 

*IN LAST 636 TRADING DAYS: 100.34 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 536 TRADING DAYS: A NET 66.20 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

 

 

 

 

end

 

Now the SLV Inventory/

AUGUST 6/ WITH SILVER UP 5 CENTS: TWO TRANSACTIONS: A HUGE PAPER DEPOSIT OF 2.34 MILLION OZ WAS DEPOSITED INTO THE SLV LATE LAST NIGHT: THEN A HUGE 2.994 MILLION OZ OF A PAPER DEPOSIT THIS AFTERNOON: INVENTORY RESTS AT 361.907 MILLION OZ//

AUGUST 5.2019: WITH SILVER UP 12 CENTS A TINY 142,000 OZ WITHDRAWAL AND THAW AS TO PAY FOR FEES//INVENTORY RESTS AT 356.573 MILLION OZ..

AUGUST 2/2019: WITH SILVER UP 10 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 356.715 MILLION OZ/

AUGUST 1//WITH SILVER DOWN 23 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 356.715 MILLION OZ//

 

JULY 31/WITH SILVER DOWN 14 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 356.715 MILLION OZ//

JULY 30/2019: WITH SILVER UP 8 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 356.715 MILLION OZ//

JULY 29/2019: WITH SILVER UP 4 CENTS TODAY: A SMALL WITHDRAWAL OF 468000 OZ FROM THE SLV/INVENTORY LOWERS TO 356.715 MILLION OZ//

JULY 26.2019: WITH SILVER DOWN 2 CENTS TODAY:  A HUGE 1.03 MILLION OZ OF PAPER SILVER LEAVES THE SLV/INVENTORY LOWERS TO 357.183 MILLION OZ//

JULY 25.2019: WITH SILVER DOWN 19 CENTS: ANOTHER PAPER WITHDRAWAL OF 1.17 MILLION OZ/INVENTORY REST AT 358.213 MILLION OZ

JULY 24…A BIG CHANGE  IN SILVER INVENTORY AT THE SLV: A GAIN OF 1.685 MILLION OZ/INVENTORY RESTS AT 359.383 MILLION OZ

JULY 23/2019: WITH SILVER UP 5 CENTS TODAY: ANOTHER BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.221 MILLION PAPER OZ ADDED INTO THE GLD INVENTORY//INVENTORY RESTS AT 357.698 MILLION OZ////

JULY 22.2019/WITH SILVER UP 21 CENTS TODAY: A MASSIVE  CHANGES IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 8.939 MILLION OZ ADDED TO THE SLV INVENTORY/INVENTORY RESTS AT 355.919 MILLION OZ//

JULY 19/WITH SILVER FLAT TODAY: ANOTHER MONSTROUS PAPER DEPOSIT OF 3.276 MILLION OZ ENTERS THE SLV//WHAT A MASSIVE FRAUD//INVENTORY RESTS AT 346.980 MILLION OZ

JULY 18/WITH SILVER UP 24 CENTS TODAY: A BIG CHANGES IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 2.668 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 343.704 MILLION OZ//

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/

 

AUGUST 6/2019:

 

Inventory 361.907 MILLION OZ

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 2.17/ and libor 6 month duration 2.09

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

G0LD LENDING RATE: – .08

 

XXXXXXXX

12 Month MM GOFO
+ 2.04%

LIBOR FOR 12 MONTH DURATION: 2.04

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.00

end

GOLD TRADING TODAY

Gold Spikes To Overnight Highs As Dow Dumps Into Red

It’s not over…

The Dow just turned red…

Joining Small Caps (and closely followed by S&P and Trannies)

For now, Nasdaq is holding gains.

As Gold surges back to overnight highs…

 

end

 

PHYSICAL GOLD/SILVER STORIES
i) GOLDCORE BLOG/Mark O’Byrne

Gold Surges To $1,475/oz and All Time Record Highs In Pounds, Yen, Canadian and Australian Dollars

6, August

Gold prices have surged in dollars and all currencies due to the escalation in the trade wars and a return to currency wars between China and the U.S.

Gold in USD – 10 Years – GoldCore.com

Gold surged as much as 2% in dollars yesterday and has consolidated on those gains today. It is gold’s highest level in dollars in more than six years (see chart) and gold reached all time record highs (nominal highs and not inflation adjusted highs) in many currencies including the British pound, the Japanese yen, Canadian and Australian dollars.

Trump’s escalation of the trade wars and the worsening U.S.-China trade conflict prompted investors to dump risk assets such as stocks and diversify into safe haven gold.

The trade war escalated at the weekend as U.S. President Donald Trump slapped an additional 10% tariff on $300 billion worth of Chinese imports and China warned that it would retaliate.

Trump escalated the trade and currency wars with Beijing by accusing China of devaluing the yuan, after US stocks saw their biggest drop in a year. The People’s Bank of China (PBOC) responded today and warned that the US decision to designate Beijing a ‘currency manipulator’ harms international rules and will have tremendous ‘consequences’ for global markets.

The risks of a no-deal Brexit and concerns about the UK political and economic outlook have contributed to gold reaching new all time record highs (nominal highs) in British pounds.

Gold priced in sterling pounds has surged 26% since early May to a nominal high of 1,220 pounds an ounce, beating its previous intra-day record of 1,204.63 pounds reached during the crisis in 2011.

Gold priced in sterling soared to a record high due to a growing realisation that a disorderly and highly disruptive British exit from the European Union is now almost certain.

New record highs in dollars, euros and other fiat currencies are only a matter of time now as currency wars see currencies devalue sharply in the coming months and years.

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

The Swiss central bank was at it again, by trying to contain the rise of the Swiss Franc

(Bloomberg)

Swiss central bank sight deposits hit record, suggesting FX interventions

 Section: 

By Catherine Bosley
Bloomberg News
Monday, August 5, 2019

The Swiss National Bank may have intervened to tame the franc’s rise, with record-high sight deposits pointing to currency market activity.

The cash commercial banks hold with the central bank, which economists consider an early indicator of SNB moves in foreign exchange markets, climbed 0.3% from the previous week to 583 billion francs ($597 billion) as of Aug. 2, figures released on Monday showed. That’s the second consecutive sizable increase.

… 

It does suggest interventions,” said Credit Suisse Group AG economist Maxime Botteron, though given the time transactions take to settle, the activity may have taken place in the week ending July 26.

A spokeswoman for the SNB declined to comment on the sight deposit figures. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-08-05/snb-sight-deposits-hi…

* * *

Join GATA here:

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

https://neworleansconference.com/noic-promo/powellgata/

* * *

Help keep GATA going:

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

http://www.gata.org

To contribute to GATA, please visit:

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

END

Chinese authorities decided to let the yuan slide to let the world be aware of slowing growth and Trump’s tariffs

(Reuters)

Slide of China’s yuan had OK of policymakers, sources tell Reuters

 Section: 

By Keith Zhai and Zheng Li
Reuters
Monday, August 5, 2019

Chinese monetary authorities let the yuan slide past the key 7-per-dollar level so that markets could finally factor in concerns around the Sino-U.S. trade war and weakening economic growth, three people with knowledge of the discussions said today.

The yuan tumbled 1.4% and past 7-per-dollar level for the first time in more than a decade today, following two days of weaker-than-expected midpoint settings by the People’s Bank of China.

… 

Those fixings on Friday and today followed U.S. President Donald Trump’s announcement that he will impose 10% tariffs on the remaining $300 billion of Chinese imports from Sept. 1, abruptly breaking a brief month-long ceasefire in a long-running trade war.

“We have had serious internal discussions, including issues such as the timing of the announcement, how to guide the market, and made some arrangements on such issues,” a policy source told Reuters.

“The regulators had a half-resisting, half-allowing idea for the yuan to fall past 7 to the dollar.” …

… For the remainder of the report:

https://www.reuters.com/article/us-china-markets-yuan-sources/china-yuan…

END

The irony is immense here:  the USA denounces China for withdrawing its central bank support for its currency.  The whole idea for currency movements should be just market forces and no government support or manipulative practices.

(Wall Street Journal/GATA)

Pot calls kettle black as U.S. labels China a currency manipulator

 Section: 

The irony here is immense. The U.S. has just denounced China for withdrawing central bank support for its currency and thus letting its currency be valued by the market, while the U.S. government itself secretly trades in the currency and commodity markets and won’t come clean about it even when a member of Congress asks:

http://gata.org/node/18210

http://gata.org/node/18832

* * *

U.S. Designates China a Currency Manipulator

By William Mauldin and Nick Timiraos
The Wall Street Journal
Monday, August 5, 2019

WASHINGTON — The U.S. Treasury labeled China a currency manipulator after the Chinese central bank let the yuan depreciate, capping a day of trade-war escalations that sparked a global fall in financial markets and fears the clash could stall America’s economic expansion.

The uncertainty could pressure the Federal Reserve to consider more interest-rate cuts, following its decision last week to lower rates for the first time in more than a decade.

… 

China’s yuan fell as much as 1.9% to a record offshore low of 7.1087 to the dollar in Hong Kong, according to data from Refinitiv, putting the currency on course for its biggest single-day loss against the dollar since August 2015, when Beijing allowed a sudden depreciation.

In mainland China, the yuan also weakened beyond the 7-yuan-to-the-dollar level — which policy makers in recent years have defended — for the first time since 2008. …

… For the remainder of the report:

https://www.wsj.com/articles/chinas-currency-weakening-escalates-trade-w…

* * *

END

Gold and silver investors should attend this years conference in New Orleans

(GATA)

This year more than ever, gold and silver investors should be in New Orleans

 Section: 

9:53p ET Monday, August 5, 2019

Dear Friend of GATA and Gold:

GATA Chairman Bill Murphy and your secretary/treasurer again will be speaking at the New Orleans Investment Conference this year, and in the letter below the conference’s organizer, Gold Newsletter Editor Brien Lundin, explains why you should join us there.

The New Orleans Investment Conference is probably the most serious financial conference in the United States, even as it is held in what may be the country’s most fun and interesting city. Because of the conference, your secretary/treasurer has been there many times and always looks forward to returning for the beauty, history, food, and atmosphere of the place.

… 

Indeed, the city itself competes heavily with the conference for your attention, so if you’re able, it’s good to give yourself an extra couple of days there.

The New Orleans conference has a long history of concentration on the monetary metals, and now that infinite money and devaluation have broken out among central banks and the monetary metals are on the verge of regaining their rightful places in the world financial system, this year more than ever New Orleans will be where gold and silver investors will want to be.

Registration for the conference entails a substantial expense, but as Brien explains below, if you register quickly you’ll enjoy a serious discount along with extra services at no extra cost and a money-back guarantee in case you don’t profit from attending.

Additionally, if you register using the internet link at the bottom of Brien’s letter, the conference will kindly pay a commission to GATA, which will diminish our fundraising appeals in the future.

So please consider joining us in New Orleans.

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

* * *

The Only Certain Investment
in an Uncertain World

By Brien Lundin
New Orleans Investment Conference
Monday, August 5, 2019

I’m going to hand you the keys to preserving everything you’ve worked for during the turmoil just ahead — to potentially multiplying your wealth during this oncoming crisis and essentially giving you $400 to accept this vital information.

You see, for well over four decades — through some of the most turbulent and dangerous times in investing — there has been no better place to find profits and safety than the legendary New Orleans Investment Conference.

And here’s even better news: This year’s New Orleans Conference is destined to be one of the most rewarding in its 45-year history.

Why? Because while most investors are being whipsawed by President Trump’s tweets and Federal Reserve tea leaves, those coming to New Orleans will get the inside track on a few irreversible trends that will create fortunes.

Let’s take a look at them.

Gold: “Easy money forever” means much higher prices.

The New Orleans Conference has led more investors to profits in gold than any other event in the world.

In fact, our organization was instrumental in getting gold ownership legalized in 1974, and our first conference was specifically held to teach investors how to buy the metal.

Today finds central bankers locked into an “easy money forever” mode that is extremely bullish for gold.

This is no idle speculation: The Fed has completely switched from raising rates to cutting rates.

This will propel metals prices much higher — so we’re once again bringing the world’s most successful gold experts to New Orleans.

You’ll get the top strategies and picks of Rick Rule, Peter Schiff, Brien Lundin, Adrian Day, Brent Cook, Byron King, GATA’s Bill Murphy and Chris Powell, Gerardo Del Real, Gwen Preston, Lobo Tiggre, Thom Calandra, Omar Ayales, Mary Anne and Pamela Aden, Dana Samuelson, and more.

Geo-political and market trends that could make or break you.

From Lady Margaret Thatcher to Ayn Rand to Henry Kissinger to Milton Friedman to Alan Greenspan to Ron Paul and more, the New Orleans Conference has a long history of attracting insightful and even legendary figures on the geopolitical and economic stages.

This year is no exception as we’re bringing in Trump economic adviser Stephen Moore, controversial political commentator Kevin D. Williamson, famed contrarian Doug Casey, Fed expert Danielle DiMartino Booth, respected contrarian advisor Peter Boockvar, popular trading authority Dennis Gartman, plus renowned experts like Adrian Day, Mike Larson, Mark Skousen, Robert Prechter, Steven Hochberg. and more.

Green fever in cannabis.

Fortunes are being made right now in the booming cannabis sector, but many investors are wondering how to get involved — and how to avoid the inevitable busts in this quickly evolving industry.

Have no fear, as New Orleans 2019 is featuring the experts who are finding the biggest winners, including Sean Brodrick of Marijuana Millionaires, Matt Carr of the Oxford Club, and Nick Hodge of the Outsider Club.

They’ll not only show you the specific cannabis subsectors that will be the long-term winners, but they’ll also reveal their hottest picks in this red-hot arena.

The future is now: Artificial intelligence, energy metals, fintech, and other juggernaut trends.

Artificial intelligence, the electrification of transportation, new battery technology, blockchain, crypto, clean energy, e-sports, income-producing real estate, medtech, streaming media, 5G, and more — these are creating huge opportunities for investors who can stay on the cutting edge.

Have no fear: Technology financier Ross Gerber, plus the world’s leading energy metals expert, Simon Moores and the Oxford Club’s tech expert, Matt Carr, will explore all these powerful trends at New Orleans 2019.

With Russ Gray and Robert Helms (the acclaimed “Real Estate Guys”), Chris Martenson and Adam Taggart of Peak Prosperity, and Nick Hodge running our inaugural “Next Big Thing(s)” panel, you’ll get insights into key opportunities that can both make fortunes and protect them.

Our quadruple-your-money guarantee — plus a $400 discount.

We will refund your entire registration fee if you find the conference doesn’t provide profits more than quadruple your cost to attend over the first six months following the event.

You can’t lose.

Correction: You can lose — if you don’t act immediately to secure your place at New Orleans 2019.

But here’s the problem: Our registration fee is about to soar, and at some point we’ll likely completely sell out.

The good news: If you register right now, you’ll save up to $400 from our full rate.

Not only that, you’ll also qualify for a free Gold Club upgrade.

Gold Club status gives you free coffee service throughout the day, an exclusive viewing area just for you, intimate Q&A sessions with many of our most popular speakers, free reports, and more.

It sells for $189, but if you register now you’ll get it for no extra charge at all.

All of this is guaranteed only if you register during this special offer period.

In the days ahead hundreds of thousands of investors will discover how exciting and valuable this year’s New Orleans Conference will be.

I can’t guarantee that any of these discounts, guarantees, or free benefits — or even a hotel room — will be available for much longer.

So if you hope to get in at the current early-bird rate and enjoy our quadruple-your-money-or-it’s-free guarantee and free Gold Club status, you’ll need to call us at 1-800-648-8411 or click on the link below to learn more and register now.

Please don’t delay. I look forward to seeing you down here in New Orleans!

All the best,

Brien Lundin
Editor, Gold Newsletter
CEO, New Orleans Investment Conference

* * *

To learn more or register, call toll-free 800-648-8411 or visit:

https://neworleansconference.com/noic-promo/powellgata/

END

Even though China has been labeled a currency manipulator after it removed its central ban support for the currency…last night they fixed their yuan at higher values

(Bloomberg/GATA)

China limits yuan’s fall after being labeled currency manipulator

 Section: 

By Tian Chen
Bloomberg News
Monday, August 5, 2019

China took steps to slow the yuan’s descent as the effects of Monday’s tumble continued to weigh on markets.

The People’s Bank of China set the daily currency fixing stronger than analysts expected and announced the planned sale of yuan-denominated bonds in Hong Kong. The moves, which came hours after the U.S. labeled the country a currency manipulator, helped drive the offshore yuan higher. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-08-06/yuan-fixing-in-focus-…

END

Now Trump imposes a total freeze on all Venezuelan government assets housed in the USA

(Reuters/GATA)

 

Trump imposes total U.S. freeze on Venezuelan government assets

 Section: 

By Makini Brice, Eric Beech, Matt Spetalnick, and Roberta Rampton
Reuters
Monday, August 5, 2019

WASHINGTON — President Donald Trump today imposed a freeze on all Venezuelan government assets in the United States, sharply escalating a diplomatic and sanctions drive aimed at removing socialist President Nicolas Maduro from power.

The executive order signed by Trump goes well beyond the sanctions imposed in recent months against Venezuela’s state-run oil company PDVSA and the country’s financial sector, as well as measures against dozens of Venezuelan officials.

… 

All property and interests in property of the Government of Venezuela that are in the United States … are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in,” according to the executive order released by the White House.

The scope of the announcement came as a surprise even to some Trump administration allies. “This is big,” said Ana Quintana, senior policy analyst with the Heritage Foundation, a conservative Washington think tank.

Quintana said it appeared the order would be a sweeping embargo on doing business with Venezuela, although she was awaiting details. …

… For the remainder of the report:

https://www.reuters.com/article/us-venezuela-politics-usa-order/trump-im…

iii) Other physical stories:

 

Russia adds 38.7 tonnes last month.  It produces around 25 tonnes per month so Russia went shopping for around 14 tones. What is fascinating is Poland.  Out of nowhere, these guys bought 100 tonnes of gold.  Up until a few days ago Poland has official reserves of 128 tonnes.  Now it is 228 tonnes.  Poland produces only 3.2 tonnes of gold per year and as such the 100 tonnes was purchased outright. Where did this gold come from? My bet: Venezuela.

(courtesy iexpats.com/Jim Atkins)

Price Of Gold Spurred By Central Bank Stockpiling

Demand for gold has climbed to a three-year high mainly due to central banks stockpiling the precious metal.

Central banks bought 224.4 tonnes of gold in the first six months of this year – a year on year rise of 47% and a massive slice of the total first half demand of 374.1 tonnes.

Trade body The World Gold Council claims 2018 saw the highest level of central bank buying of gold in 50 years, and that the trend is continuing.

Poland was the biggest buyer with a huge 100 tonne purchase – the highest central bank deal since India ordered 200 tonnes in November 2009.

National Bank of Poland President Professor Adam Glapiński indicated that this purchase was strategic, with the intention of further safeguarding the financial security of the country.

Gold spot hits six year high

Russia also increased holdings by 38.7 tonnes, bringing the country’s total stockpile to 2,207 tonnes.

Other central bank purchasers of note were China, Turkey, Kazakhstan, India, Ecuador, Colombia, the Kyrgyz Republic and the Philippines.

Taking an overview of the market, a council spokesman said: “Jewellery demand was largely the product of a more positive environment for Indian consumers. Shifts in bar and coin investment were very much price-related: as the gold price powered its way to multi-year highs, profit-taking kicked in and retail investment all but dried up.

“The technology sector reduced its usage of gold due to challenging global conditions, although the outlook is for this element of demand to establish something of a floor over coming quarters.”

Bars and coins tarnish performance

Gold-backed ETF holdings rose 67.2 tonnes to a six-year high of 2,548 tonnes in the first half of the year.

Overall, supply was up 6% to 1,186 tonnes and the spot price of gold ended June on a high of $1,408 an ounce – the highest prices for six years, driven by economic and political uncertainty.

Mining supply increased by 2%, while recycling jumped 9% as the spot price increased through the year.

One of the only market factors to tarnish gold in the first half of the year was a 12% drop in bar and coin investment, mainly accounted for by a 29% year on year drop in China.

 

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0318/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  7.0691   /shanghai bourse CLOSED DOWN 43.94 POINTS OR 1.56%

HANG SANG CLOSED DOWN 175.08 POINTS OR 0.67%

 

2. Nikkei closed DOWN 134.98 POINTS OR 0.65%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index UP TO 97.53/Euro FALLS TO 1.1199

3b Japan 10 year bond yield: FALLS TO. –.18/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 106/34/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 54.84 and Brent: 59.84

3f Gold UP/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 -.54%/Italian 10 yr bond yield DOWN to 1.53% /SPAIN 10 YR BOND YIELD DOWN TO 0.22%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.07: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 2.05

3k Gold at $1463.60 silver at: 16.40   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 32/100 in roubles/dollar) 65.15

3m oil into the 54 dollar handle for WTI and 59 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 106.34 DESTROYING JAPANESE CITIZENS WITH HIGHER FOOD INFLATION

30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning .9745 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0914 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 0.54%

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 1.74% early this morning. Thirty year rate at 2.29%

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

6.  TURKISH LIRA:  UP  TO 5.5383..

Relief Rally Sweeps Across Global Markets After China Stabilizes Plunging Yuan

With the world on the verge of panic last night after the US Treasury’s shocking announcement for the first time in 25 years that China was branded a currency manipulator (after ignoring China’s efforts for years to prop up its currency, just so Beijing would avoid a massive capital flight, all it took was one day of allowing the yuan to tumble for Trump to be triggered), a wave of relief swept across global markets when the PBOC fixed the yuan at 6.9683 per dollar, not only stronger than the 7.00 “line in the sand”, but also marginally stronger relative to the 6.9871 forecast by analysts and traders surveyed by Bloomberg, and the 6.9736 forecast by a major Chinese publication.

The result was that while trade war between the world’s top economies remained near boiling point, some of the heat was reduced just enough by the firmer-than-expected fixing in the yuan rate, which immediately helped steady trader nerves after the biggest drop in the US stock market of 2019 which saw the Dow plunge 767 points.

Safe-haven assets, including bonds and some currencies such as the yen and Swiss franc, settled down as investors moved tentatively back into the euro, pound and some of the emerging market currencies that have been hit in recent days, while U.S. equity futures, which had tumbled as much as 1.9% after the Treasury’s announcement, rose as much as 0.9%, surging 70 points from session lows…

… alongside European stocks while Asian shares fell after what the narrative quickly saw as “China moving to stabilize its currency”, helping ease some of the market turmoil that kicked off the week, and resulting in a buying spree this morning.

The mood remains fragile though and a stray headline or a Trump tweet can undo everything, especially now that the S&P is trading at a level where CTAs turn short.

“I think the tipping point for a more prolonged negative trend (for risk assets) is quite close,” said SEB Investment Management’s head of asset allocation Hans Peterson, referring to the trade war escalation and other risks such as Brexit. “We have reduced both European and global equities. We still have a small overweight in EM (emerging market) stocks but just a small one.”

Meanwhile, now that the US officially declared that China was manipulating its currency, and that Washington would engage the International Monetary Fund to eliminate unfair competition from Beijing, there is confusion as to what the US will do next: “Officially labeling China a currency manipulator gives the United States a legitimate reason to take even more steps,” said Norihiro Fujito, senior investment strategist at Mitsubishi UFJ Morgan Stanley Securities. “The markets are now scrambling to factor in the possibility of the United States imposing not only an additional 10% of tariffs on Chinese imports, but the figure being raised to 25%.

Europe’s Stoxx 600 index extended gain to as much as 0.6%, rebounding from the biggest 2-day drop in three years, and tracking the rebound in S&P futures. Earlier, the European index dropped as much as 0.3% earlier but all 19 sectors advanced in the morning session; LVMH Moet Hennessy Louis Vuitton jumped +2.2% after upgrade at Bernstein, Vivendi soared +7.3% on Tencent talks for UMG stake.

Earlier in the session, stocks dropped across Asia, with MSCI’s Asia-Pacific index ex-Japan ending down 0.75% after brushing its lowest since January. It has lost 3.7% so far this week. The drop was led by health care and energy firms, as traders were spooked by the escalating trade war between China and the US. Most markets in the region were down, with Australia and China leading declines. The Topix retreated 0.4%, nearly erasing its 2019 gains, as electronics and telecommunications companies dragged the Japanese gauge lower. The Shanghai Composite Index closed 1.6% lower, driven by Industrial & Commercial Bank of China and Inner Mongolia Yili Industrial Group. PetroChina’s A-shares fell 1.4% to a record low. India’s Sensex climbed 1.3%, bucking regional declines, after Credit Suisse AG upgraded the nation’s stocks to overweight amid the China-U.S. dispute. Separately, the Indian government cemented its position by revoking seven decades of autonomy in the disputed Muslim-majority state of Kashmir

In rates, although U.S. Treasury yields had edged up from October 2016 lows of 1.672%, German yields stayed down with markets now pricing in a 100% chance that the European Central Bank will cut its already deeply negative interest rates at its next meeting. European bond markets edged higher although Italian debt suffered some weakness following fresh concerns over the Italian budget; U.K. gilts were little changed; U.S. futures rose alongside European stocks while Asian shares fell. Japan’s 10-year yield fell to a three-year trough of minus 0.215%

In FX, all eyes were on the offshore yuan, which early on stretched the previous day’s slide, and briefly weakened to 7.1382, the lowest since international trading in the Chinese currency began in 2010. But it pulled back to 7.0469 after Beijing’s firmer-than-expected yuan fixing on Tuesday. The safe-haven Japanese yen, touched a seven-month high of 105.520 per dollar before it tumbled by more than 1%.

“China has effectively avoided a confrontation with the U.S. in the currency market, spurring short-covering in dollar-yen,” said Marito Ueda, managing director at FX Prime by GMO Corp. in Tokyo. “The Bank of Japan’s increased buying of T-bills also appears to be contributing to yen selling.”

Elsewhere, the AUD/USD headed for its biggest gain in more than two weeks following the recovery in risk sentiment. Aussie held gains as the Reserve Bank of Australia kept interest rates unchanged. The Swiss franc, another currency sought in times of turmoil, has gained roughly 1% against the dollar this week. It set a six-week peak of 0.9700 franc per dollar. The euro was little changed at $1.1199 Tuesday after climbing the previous three days; the pound gained on signs opponents of a no-deal Brexit were hardening their plans.

In commodities, brent crude oil futures plumbed a seven-month low of $59.07 per barrel as the trade war raised concerns about lower demand for commodities. Brent last traded at $60.41 for a gain of 1% as bargain hunting kicked in.  Spot gold advanced to a six-year peak of $1,474.80 an ounce as investors sought the safety of the precious metal. Bitcoin briefly rose above $12,000 overnight before a sudden bout of selling dragged it back down.

JOLTS is the only release today, while Allergan and Disney are among companies reporting earnings.

Market Snapshot

  • S&P 500 futures up 0.9% to 2,855.00
  • STOXX Europe 600 up 0.3% to 370.37
  • MXAP down 0.8% to 150.77
  • MXAPJ down 0.8% to 485.77
  • Nikkei down 0.7% to 20,585.31
  • Topix down 0.4% to 1,499.23
  • Hang Seng Index down 0.7% to 25,976.24
  • Shanghai Composite down 1.6% to 2,777.56
  • Sensex up 1.1% to 37,088.44
  • Australia S&P/ASX 200 down 2.4% to 6,478.09
  • Kospi down 1.5% to 1,917.50
  • German 10Y yield fell 0.7 bps to -0.523%
  • Euro unchanged at $1.1203
  • Italian 10Y yield rose 2.5 bps to 1.215%
  • Spanish 10Y yield fell 0.7 bps to 0.239%
  • Brent futures up 0.5% to $60.09/bbl
  • Gold spot down 0.2% to $1,460.85
  • U.S. Dollar Index little changed at 97.52

Top Overnight News

  • China took steps to limit weakness in the yuan, providing some stability to global financial markets in the wake of Monday’s rout, and said it won’t depreciate the currency to be competitive. The moves from the PBOC, which came after the U.S. labeled the country a currency manipulator, helped drive the yuan up a day after it sank the most since 2015
  • Trump administration formally labeled China a currency manipulator, escalating its trade war with Beijing after the Asian country’s central bank allowed the yuan to fall in retaliation for new U.S. tariffs
  • Japan MOF official says will keep watching FX with sense of urgency
  • Opposition Labour Party leader Jeremy Corbyn signaled he will call a vote of no confidence when Parliament returns next month while rebel MP Dominic Grieve said a growing number of his fellow Conservatives will turn against Prime Minister Boris Johnson
  • Opponents of Boris Johnson’s threat to crash out of the EU without a deal on Oct. 31 are hardening their plans to stop him as the new U.K. prime minister seeks to build support with a series of targeted spending pledges
  • New Zealand’s central bank is poised to cut rates on Wednesday and may hint it’s not done yet as the economy cools and global peers ease policy
  • For the fourth time in the last two weeks, Kim Jong Un’s regime shot unidentified projectiles into the waters between the Korean Peninsula and Japan, South Korea’s defense ministry said
  • Oil reversed a decline as China’s central bank set the yuan fixing stronger than expected, calming investors after the U.S. escalated the trade war by labeling the Asian nation a currency manipulator.
  • Janet Yellen, Ben Bernanke, Alan Greenspan and Paul Volcker made a joint plea for the central bank to be able to operate without political pressures or the threat of removal of its leaders
  • The Fed will be leaning closer to reducing interest rates again next month after President Donald Trump ratcheted up his trade war with China and the central bank may even have to cut more steeply than it did last week
  • China urged Hong Kong citizens to stand up to protesters challenging the government, after a general strike that led to a day of traffic chaos, mob violence, tear gas and flight cancellations. The Hong Kong stocks rout entered its 10th day, the worst such streak since 1984
  • UBS Group AG plans to charge individual wealth clients for holding more than 500,000 euros ($560,000) in cash, extending the fee policy to more of its rich customers as negative interest rates crunch profits

Asian equity markets resumed the sell-off following Wall St’s worse performance YTD where the S&P 500 posted a 6th consecutive day of losses and the DJIA dropped over 900 points intraday due to the US-China trade tensions and CNY slump, while the US designation of China as a currency manipulator added to the jitters and initially pressured US futures after-hours. ASX 200 (-2.4%) and Nikkei 225 (-0.7%) traded with hefty losses and broad weakness across sectors although gold names remained the exception in Australia, while the Japanese benchmark staged a significant recovery as better than expected Household Spending data and a rebound in USD/JPY softened the blow, with earnings releases also a driver for price action. Elsewhere, Hang Seng (-0.7%) and Shanghai Comp. (-1.5%) were pressured by the trade tensions after the US labelled China a currency manipulator whilst China confirmed purchases of US agriculture products have been suspended, although markets found some comfort after the PBoC announced to sell CNY 30bln of bills in Hong Kong and set the reference rate within bounds of the perceived 7.00 line in the sand. Finally, 10yr JGBs were choppy with early upside seen due to the wide risk averse tone which boosted prices to a fresh record high and dragged the 10yr yields to below -0.2% which was seen to be the bottom end of BoJ’s target. However, prices have since eased back with 10yr JGBs now lower as stocks recovered from lows and after a mixed 30yr auction, while T-notes have also retreated to below the 130.00 level amid a pullback from the recent surge triggered by the trade tensions which also saw the 3m/10yr yield inversion at its most prominent since the GFC.

Top Asian News

  • Currency That Gave Birth to Asian Crisis Emerges as Safest Bet
  • Kirin Picks Up $1.2 Billion Stake in Japan Cosmetics Maker Fancl
  • Key Gauge of Japan’s Economy Falls to Lowest Since Early 2010

Major European indices have modestly firmed after a mixed to flat open [Euro Stoxx 50 +0.6%], following on from a lacklustre Asia-Pac handover as Wall St. posted its worst performance for the year thus far. Similarly, sectors are in the green though with gains limited and the energy sector unable to breach into positive territory. In terms of individual movers this morning, Vivendi (+7.0%) are in discussions with Tencent for the sale of a 10% stake in Universal Music, with the deal valuing Vinci’s music business at EUR 30bln; since 2018 the Co. has been exploring a partial Universal Music sale with the deal to include the option for a further 10% stake to be purchased in the future. Moving to earnings this morning saw Deutsche Post (+4.3%) update where they beat on Q2 EBIT and their Germany Post & Parcels division posted positive earnings for the first time since Q4 2017. At the other end of the Stoxx spectrum are InterContinental Hotels (-2.4%) as the Co’s revenue did marginally miss on expectations; finally, with nothing fundamentally new from yesterdays pre-market update Metro AG (-6.7%) remain under pressure after further reiteration of comments that Kretinsky’s investment fund will not be increasing their offer for the Co.

Top European News

  • Opponents of No-Deal Brexit Harden Plans to Block Johnson Threat
  • Biggest Wealth Fund’s Bid to Dump Big Oil Is Now But a Whimper
  • Domino’s Pizza Group Shares Rise After 1H Results, CEO Departure
  • China, Hong Kong Tensions Weigh on InterContinental Hotels

In FX, AUD/NZD – No major surprises from the RBA overnight, but an unexpected boost from trade data revealing a wider than expected and record surplus has helped the Aussie mount a strong recovery from yesterday’s lows with additional support via a Yuan rebound (Usd/Cnh circa 7.0700 vs almost 7.1400 at one stage after a measured/capped 6.9683 Usd/Cny mid-point fix). Aud/Usd is back up near 0.6800 and Aud/Nzd has bounced even further from sub-1.0270 lows towards 1.0400, as the Kiwi also benefited from considerably better than forecast NZ jobs and wage metrics, with Nzd/Usd not far from 0.6600 compared to under 0.6500 at worst on Monday. However, the RBNZ is still seen cutting the OCR by another 25 bp tomorrow and the pair has subsequently eased drifted down to around 0.6550, while Aud/Jpy may lose momentum given mega expiry options at the 72.00 strike (4 bn).

  • GBP/NOK/SEK – The Pound has also regained composure amidst a broad stabilisation in risk sentiment, with Cable just surpassing yesterday’s best before stalling into the 1.2200 level and Eur/Gbp reversing from 0.9250 to a few pips below 0.9200 even though no deal Brexit risk is arguably rising. Similar story for the Scandi Crowns that are paring losses vs a steady Euro and with the Nok encouraged by a partial revival in oil as well.
  • JPY/CHF – Conversely, the tentative and formative Tuesday turnaround in financial markets/mood has taken its toll on the Yen especially as Usd/Jpy spikes from near 105.50 lows to just over 107.00 before topping out, while the Franc has retreated against the Dollar and Euro to 0.9750+ and 1.0930 respectively compared to almost 0.9700 and 1.0900.
  • EUR – In contrast to the Aussie and Kiwi, German factory orders and the construction PMI hardly impacted the single currency even though the former was significantly better than anticipated and the latter lost grip of the 50.0 handle. Instead, Eur/Usd is anchored around 1.1200 and trading more in lock-step with wider Greenback moves as the DXY returns to its 97.500 axis within 97.698-203 parameters, plus the aforementioned Yuan fluctuations on the premise that the Euro may become the default alternative for China if trade wars escalate and US Treasuries are offloaded in response to tariffs and the official declaration that Beijing is a currency manipulator. However, expiries may also be impacting ahead of the NY cut when 1.5 bn roll off between 1.1190-1.1200.
  • EM – The RBI completes this week’s global Central Bank policy meeting rota, and like the RBNZ is expected to reduce key rates by ¼ point and if confirmed it will be 4 such moves in a row. However, the BoK could make an unscheduled appearance in some shape or form before that as an emergency gathering has been convened in South Korea for 23GMT tonight to ‘discuss’ financial conditions. Usd/Inr currently hovering above 70.7300 and Usd/Krw close to 1215.50.
  • RBA kept the Cash Rate Target unchanged at 1.00% as expected and stated it is to adjust policy if needed to support the economy and will monitor developments in labour markets closely. Furthermore, the RBA said outlook for the global economy remains reasonable and that there are signs house prices are stabilizing in Sydney and Melbourne, but also noted it will take longer than expected to reach 2% inflation and that wage growth remains subdued with little upward pressure at the moment.

In commodities, WTI and Brent are firmer thus far, though have tested the USD 55.0/bbl and USD 60.0/bbl marks to the downside on several occasions thus far. Newsflow for the complex has been very light thus far with the only notable update from Goldman Sachs who maintain their US oil growth outlook at 1.3mln BPD for 2019, but lowers 2020’s to 1.1mln BPD vs. 1.2mln BPD. Looking ahead, we do have the API weekly report where expectations are for a headline draw of 3mln, we also have the EIA’s Short Term Energy Outlook on the day’s schedule. In terms of metals, gold has dipped this morning as risk sentiment has arguably strengthened but perhaps more appropriately not deteriorated further, while the yellow metal is weaker it is still significantly above the USD 1450/oz handle. As such, copper prices are firmer deriving support from the aforementioned market sentiment.

US Event Calendar

  • 10am: JOLTS Job Openings, est. 7,326, prior 7,323
  • 12pm: Fed’s Bullard Speaks on U.S. Economy in Washington

DB’s Jim Reid concludes the overnight wrap

Thanks for all your well wishes after news of my bike accident filtered through yesterday. Nice to know that so many people are pleased that I’m still alive. Having said that you’d be a pretty strange lot if you felt the opposite. The clip of the incident recorded from a nearby van’s dashcam has gone viral. Maybe not in a Lady Gaga type way but maybe enough to fill a non-league second division football promotion decider. See my Bloomberg header for the link or ask me and I’ll send. What I didn’t say yesterday was what happened next. I was sprawled across the side of the road with my bike by my side in agony and in shock. The driver then moved to go round me and looked like he was driving off. Like a premier league footballer who has theatrically fallen to the ground, and then realises that there’s actually a goal to score, I got up quickly (in agony mind) and blocked him from moving off and shouted at him. He then shouted back at me that he was moving to one side to park the car. He got out and profusely apologised while I went back to being a premier league footballer on the ground. As for my wife, this all happened before she was even awake and after being driven back home I woke her up with a cup of tea with blood all over me and bits of ripped cloth hanging off my clothing. To say I’ve never seen her wake up quicker would be an understatement.

Will August be as much as a write-off as my bike is? It does continue to feel like it’s going to be one of “those” Augusts where markets are unstable and illiquid, and the tranquility of holidays are ruined. As we discussed last week the stakes for this month were already being raised by markets getting ahead of themselves on both central bank action and risk levels versus the current data. Adding on a fresh US tariff announcement from Mr. Trump on Thursday, the Chinese using the yuan as a retaliatory weapon yesterday, and the US Treasury’s official designation of China as a currency manipulator overnight, and we have a combustible situation.

The Treasury’s statement on China being cited as an FX manipulator alleges that there have been “concrete steps to devalue its currency” in recent days. It goes on to say that “the purpose of China’s currency devaluation is to gain an unfair competitive advantage in international trade.” The fact that the designation came under the 1988 act, rather than the 2015 act, actually makes it a bit less disruptive, as the more recent act is the one that automatically starts a new, specific sanction process. Nevertheless, there may be scope for the Commerce Department to treat the designation as a subsidy, which could clear the way for more and higher tariff rates on Chinese goods.

The signal from the move is unambiguously escalatory, and markets are taking the news negatively. However we have rebounded off the Asian lows as markets took heart from the PBoC fixing the daily reference rate for the onshore yuan at 6.9683 (vs. 6.9871 expected).The onshore yuan is actually trading up +0.15% this morning at 7.0399 while the offshore yuan is trading flattish at 7.0649. Asian equity markets pared some of their deep early losses after the PBOC move but are still trading down with Chinese markets leading declines. The CSI (-2.01%), Shanghai Comp (-2.43%) and Shenzhen Comp (-3.03%) are all down over 2%. The Nikkei (-0.64%), Hang Seng (-0.71%) and Kospi (-0.55%) are also making relatively modest declines. The MSCI HK is on course for the 10th successive decline which would be the worst run since 1984 if we close in the red. Amongst G10 currencies, the Japanese yen is down -0.80% while others are trading mixed. Elsewhere, the S&P 500 futures are trading up +0.2% lower overnight, recouping early losses of c. -1.8%. Yields on 10y USTs are +3.5bps this morning. To be honest markets are a bit all over the place this morning so best to check where we are when you’re reading this.

In other news, North Korea has said overnight that it will take “new road” in negotiations with the U.S., saying that Washington and Seoul would “pay a heavy price” if they continued to disregard the regime’s warnings against holding joint military exercises. The statement came less than an hour after North Korea fired a new volley of short-range ballistic missiles into the sea — its fourth such weapons test in two weeks. Elsewhere, President Trump imposed further sanctions on Venezuela, freezing the government’s assets in the US and adding immigration restrictions in a move aimed at stepping up pressure on the regime of Nicolas Maduro.

Back to yesterday now and these overnight moves come after risk assets took a heavy hit. All three US bourses posted their worst days of the year, with declines approaching or above -3% for each index. The biggest move was reserved for the NASDAQ, which fell -3.47%, while the S&P 500 and DOW finished -2.98% and -2.90% respectively. The S&P 500 is now down for 6 straight sessions, which is the longest such run since October last year. It’s also down -5.99% in that time (-6.73% at yesterday’s lows) which is equivalent to a market cap loss of $1.76 trillion; that’s roughly the same as the annual GDP of Canada. The overall US public markets shed -$906.2bn of value just yesterday, which made yesterday’s session the sixth worst day in market history in terms of absolute losses. The NYSE FANG index also tumbled -4.59%, with China-exposed Apple trading down -5.23%, for the index’s worst day since last October. While tech bore the brunt of the pain, the reality was that all sectors closed lower yesterday, with even relative havens like utilities and consumer staples down -1.51% and -2.69%. Credit wasn’t immune either, with US HY cash spreads +36bps wider and +10bps in Europe.

The moves in US equities unsurprisingly coincided with a decent leg up in volatility with the VIX yesterday closing at 23.47 which is the highest level since January. Month to date the VIX is already up +5.6pts which is the biggest move to start a month over the first three days since February 2018 when inverse vol ETFs were blowing up. Meanwhile, Europe also suffered with the moves matching those in the US at the time of the close with the STOXX 600 down -2.31%. Banks (-1.41%) actually held in relatively well considering despite Bunds hitting a new low of -0.516% (-2.0bps). 30 year bunds closed (-1.6bps at -0.012%) below zero for the first time ever. In the UK, gilts reached 0.512% (-3.8bps).

However the big moves in rates were reserved for Treasuries where 2y and 10y yields fell -12.7bps and -11.9bps respectively. The 10-year note has now rallied -33.5bps over the last 4 sessions, the biggest such rally since 2011. That rally at the short end actually meant the 2y10y curve steepened +0.8bps to 13.7bps. However, the other two prominent yield curve metrics, the 3m10y and the Fed’s forward spread, both flattened, by -6.3bps and -14.7bps. That takes the 3m10y to a fresh cyclical low, its lowest since April 2007. It’s also worth noting that breakevens shot lower with 10y breakevens falling -5.6bps and to its lowest level since September 2016. Other safe havens, e.g. the Swiss Franc (+0.88%), Japanese Yen (+0.45%), and gold (+1.51%) also all performed well. Gold is now up +14.04% this year, passing the S&P 500 in terms of YTD gains (+13.48%). The last time that gold beat the S&P on a full-year basis was 2011.

As for Fed expectations we’ve now shifted all the way back to 67bps of cuts being priced in through year-end. Keep in mind that the day after Powell spoke – just 6 days ago – there were only 34bps of cuts priced in. Yesterday, the Fed’s Brainard spoke about the payments system, and when asked about markets she said “I am certainly monitoring developments very closely.” That was corroborated by Kansas City’s George (who dissented against last week’s cut) who said that “markets move quickly. It takes some time to see how that evolves and so the best I think that you can do right now is just to monitor.”

President Trump took to Twitter throughout yesterday’s session to rachet up his confrontational rhetoric. He accused China of having “dropped the price of their currency to an almost a historic low” and said that their “currency manipulation (…) is a major violation.” He also said that “China is intent on continuing to receive the hundreds of Billions of Dollars they have been taking from the U.S. with unfair trade practices and currency manipulation. So one-sided, it should have been stopped many years ago!” There were also unconfirmed reports of Chinese retaliation, with Bloomberg reporting that Chinese agriculture firms have been told to stop buying US soybeans. Hu Xijin, editor of the English-language Chinese paper the Global Times, tweeted that “Chinese enterprises have halted buying US farm products. The Chinese side won’t submit to the US.”

In other news, data played second fiddle however it didn’t go unnoticed that the US non-manufacturing ISM weakened to the lowest level since August 2018, down -1.4pts at 53.7. The sub-indexes weren’t particularly encouraging either, as new orders fell to 54.1, the lowest since August 2016. On the other hand, employment rose to 56.2, right in the middle of the range since 2017. Earlier in the session, the Markit services PMI was revised +0.8pts higher to 52.2. Obviously, these surveys were conducted before the most recent trade escalation, limiting their immediate relevance.

Over in Europe, the final July PMIs were similarly mixed. The euro area aggregate services PMI came in at 53.2, -0.1pt lower from the flash reading, as expected. Italy’s reading was notably better than expected, up +1.2pts to 51.7 versus expectations for a +0.1 increase. Meanwhile, France was also stronger at 52.6 (from 52.2 flash), while Germany was down at 54.5 (-0.9pts from flash).

To the day ahead now, which is a quiet one for data with only June factory orders data due in Germany this morning and then the June JOLTS report scheduled for the US. Away from that we’re due to hear from the Fed’s Bullard at 5pm BST when he speaks on the US economy in Washington. Earnings releases are also due from Walt Disney and Duke Energy.

 

3A/ASIAN AFFAIRS

I)TUESDAY MORNING/ MONDAY NIGHT: 

SHANGHAI CLOSED DOWN 43.94 POINTS OR 1.56%  //Hang Sang CLOSED DOWN 175.08 POINTS OR 0.67%   /The Nikkei closed DOWN 134.98 POINTS OR 0.65%//Australia’s all ordinaires CLOSED DOWN 2.45%

/Chinese yuan (ONSHORE) closed UP  at 7.0313 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED UP // LAST AT 7.0313 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.0691 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

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

Very strange!!  China has been manipulating its currency but not southbound but northbound..keeping it higher than it ought to be.  So when China tries to let market forces determine its value, the USA labels China a currency manipulator.

(zerohedge)

 

For The First Time In 25 Years, US Treasury Just Designated China A Currency Manipulator

Following the plunge in the yuan overnight, The U.S. Treasury Department on Monday designated China as currency manipulator, a historic move that no White House had exercised since the Clinton administration.

“Secretary Mnuchin, under the auspices of President Trump, has today determined that China is a Currency Manipulator,” the Treasury Department said in a release.

“As a result of this determination, Secretary Mnuchin will engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions.” ”

“This pattern of actions is also a violation of China’s G20 commitments to refrain from competitive devaluation.”

Washington hasn’t labeled a major trade partner a currency manipulator since 1994.

The Offshore Yuan tumbled to a new record low on the headline…

 

USDJPY is also diving as are US equity futures (Dow futures are down 350 from their close, down 500 from the cash close)…

And gold is spiking above $1485…

*  *  *

Full Treasury Statement

The Omnibus and Competitiveness Act of 1988 requires the Secretary of the Treasury to analyze the exchange rate policies of other countries. Under Section 3004 of the Act, the Secretary must “consider whether countries manipulate the rate of exchange between their currency and the United States dollar for purposes of preventing effective balance of payments adjustment or gaining unfair competitive advantage in international trade.”

Secretary Mnuchin, under the auspices of President Trump, has today determined that China is a Currency Manipulator.

As a result of this determination, Secretary Mnuchin will engage with the International Monetary Fund to eliminate the unfair competitive advantage created by China’s latest actions.

As noted in the most recent Report to Congress on the Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States (“FX Report”), China has a long history of facilitating an undervalued currency through protracted, large-scale intervention in the foreign exchange market. In recent days, China has taken concrete steps to devalue its currency, while maintaining substantial foreign exchange reserves despite active use of such tools in the past. The context of these actions and the implausibility of China’s market stability rationale confirm that the purpose of China’s currency devaluation is to gain unfair competitive advantage in international trade.

The Chinese authorities have acknowledged that they have ample control over the RMB exchange rate. In a statement today, the People’s Bank of China (PBOC) noted that it “has accumulated rich experience and policy tools, and will continue to innovate and enrich the control toolbox, and take necessary and targeted measures against the positive feedback behavior that may occur in the foreign exchange market.” This is an open acknowledgement by the PBOC that it has extensive experience manipulating its currency and remains prepared to do so on an ongoing basis.

This pattern of actions is also a violation of China’s G20 commitments to refrain from competitive devaluation.  As highlighted in the FX Report, Treasury places significant importance on China adhering to its G-20 commitments to refrain from engaging in competitive devaluation and to not target China’s exchange rate for competitive purposes. Treasury continues to urge China to enhance the transparency of China’s exchange rate and reserve management operations and goals.

This is very odd since just a few a weeks ago, The US Treasury Report chose not to label China a currency manipulator as it only triggered one of the criteria.

zerohedge@zerohedge

When China was manipulating its currency stronger for years, not a peep.

One day – just one day – it lets it drop (to a fair value) and all hell breaks loose.

This is what the Treasury said about China’s FX policy then:

Treasury continues to urge China to take the necessary steps to avoid a persistently weak currency. China needs to aggressively address market-distorting forces, including subsidies and state-owned enterprises, enhance social safety nets to support greater household consumption growth, and rebalance the economy away from investment. Improved economic fundamentals and structural policy settings would underpin a stronger RMB over time and help to reduce China’s trade surplus with the United States.

The report also said that “Treasury continues to have significant concerns about China’s currency practices, particularly in light of the misalignment and undervaluation of the RMB relative to the dollar. China should make a concerted effort to enhance transparency of its exchange rate and reserve management.”

Despite not accusing China of manipulting the yuan, the report warned that “notwithstanding that China does not trigger all three criteria under the 2015 legislation, Treasury will continue its enhanced bilateral engagement with China regarding exchange rate issues, given that the RMB has fallen against the dollar by 8 percent over the last year in the context of an extremely large and widening bilateral trade surplusTreasury continues to urge China to take the necessary steps to avoid a persistently weak currency.”

The punchline – the US was quite clear in its demands to Beijing:

China needs to aggressively address market-distorting forces, including subsidies and state-owned enterprises, enhance social safety nets to support greater household consumption growth, and rebalance the economy away from investment. Improved economic fundamentals and structural policy settings would underpin a stronger RMB over time and help to reduce China’s trade surplus with the United States.

Well that is all over now.

END

This man ought to know the true value of the yuan and he believes that it could sink another 40%

(Kyle Bass)

 

Kyle Bass Warns Yuan Could Sink Another 40% If PBOC Pulls Support

Too bad Kyle Bass closed his yuan short earlier this year. If he had held that position, he would have made a killing on Monday, when the Chinese currency broke below 7 to the dollar and continued to tumble as the currency war between the world’s two largest economies officially began.

Though Bass insists that the HKD, against which he has taken a large position betting that its more than 30-year-old peg against the dollar will soon break, won’t be far behind the yuan now that Beijing has seemingly stopped supporting the formerly tightly controlled yuan, the hedge fund manager, who still probably profited off his short positions against the currencies of several regional rivals, appeared on CNBC’s “the Closing Bell’ Monday afternoon to talk China.

Inviting Bass to speak made sense: He’s established himself as one of the most prominent China bears in the West, even joining with Steve Bannon to warn investors and ordinary people of the dangers of China’s constant manipulation of the US. And during Friday’s interview, which came as US stocks locked in their worst daily performance of the year, Bass explained how the yuan could sink another 30% or 40% if Beijing completely abandons supporting it.

 

As Bass explained, President Trump’s claim that Beijing manipulates its currency is accurate.

“What’s happening in China is they have to have dollars to sell then to buy their own currency to hold it up. If they were to ever free float their currency, I think it would drop 30% or 40%,” Bass told CNBC’s “Closing Bell.”

“And the reason is they claim to be 15% of global GDP in dollar terms, but less than 1% of global transactions settled in their own currency,” Bass added. And so, they prop their currency up…everyone calling them a currency manipulator – they are trying to hold this whole thing together.”

For the first time since 2008, the exchange rate for China’s onshore yuan sunk below 7 to the dollar on Monday. Pressure on the yuan started last week after President Trump said he would slap tariffs on another ~$300 billion of Chinese imports. It accelerated on Monday when Beijing announced that it would cancel agricultural purchases promised as part of the latest trade war detente.

Bass has warned American corporations not to pressure the Trump Administration to strike a deal with China. He added that Beijing has a history of never living up to its promises re: trade since joining the WTO since 2001.

“Every deal that the Chinese have signed up with us since their inception into the WTO since 2001, China never lives up to their promises,” he said on July 25. “At some point in time, one of our administrative officials is going to hold their feet to the fire and this is kind of a battle of cultures because the Communist Party doesn’t want to submit themselves to anything measurable or enforceable.”

“If the Chinese run out of dollars, they need dollars to buy everything that they import…” Bass said.

He then referenced South Korea back in the 90s during the runup to the Asian currency crisis: South Korea infamously kept USD on its balance sheet after loaning them out to their banks, making their pile of dollar FX reserves an illusion.

Something similar is happening now with China, Bass said.

Watch Bass’s full interview below:

END
China show some control as they fix the yuan a lot stronger than market pundits thought. This occurred a few hours after Trump labels China as a currency manipulator.  China has been a manipulator for quite some time, the problem is that they have manipulated their currency upwards to keep the game going
(zerohedge)

Yuan, Futures Surge After PBOC Fix Is Stronger Than Expected

In the aftermath of the US shockingly designating China a currency manipulator – for the first time in over 25 years –  there was a tense period of several hours in which it appeared that all bets were off, and that with both the US and China seemingly going full tilt, China would fix the Yuan not only far weaker than its Monday rate, but also weaker than expected according to an imputation of the country’s currency basket, which was 6.9736, well below the previous fixing of 6.9225, the first fixing below 6.90 in 2019 and the catalyst for the overnight plunge in risk assets. Heck, some even speculated that Beijing may fix the Yuan below 7.00 vs the USD, if not launch a couple of nukes at the US for good measure.

It wasn’t meant to be though: shortly after 9pm EST, the PBOC lifted the kimono so to speak… and the market collectively exhaled when China revealed that while it had indeed fixed the onshore yuan weaker than Monday, it did so stronger relative to both the 7.00 proverbial line in the sand, and which would have been a retaliatory declaration of outright currency war, but also relative to the expected fixing, with the number coming at 6.9683.

In kneejerk reaction, a wave of relief washed over the market, sending the offshore Yuan surging, and reversing all prior session losses which had dragged it as low as 7.14 just moments ahead of the fix, to above 7.10 last…

 

… while the S&P Emini future recovered all losses from the declaration of China as a currency manipulator

… although after a sharp spike, it appears that the initial euphoria is starting to wear off.

Commenting on the move, Bloomberg’s Garfield Reynolds notes that the PBOC “just won back some measure of control over the slumping yuan with a surprisingly strong fix. There’s some immediate relief seen across bruised risk assets, with crude and the Topix paring declines. And the retreat in havens like Treasuries and the yen signals that the move could reduce some of the heat in markets from the trade-war escalation.”

It might also, Reynolds adds, “soothe the White House to see China leaning against the fundamentals to prop up its currency.”

And while this was certainly a “generous” gesture by Beijing, especially if the two nations are now indeed engaged in FX war, one wonders what if anything China stands to gain by appearing somewhat appeasing: after all just hours earlier it had been branded a manipulator, an insulting designation in a world in which everyone manipulates their currency, and with the US no longer willing to back off, all Xi stood to “win” was to appear weaker when faced with a berserk opponent.

In any case, now that Beijing has shown some control – instead of hurtling head on into a currency war and global financial crisis that would have blown up its banking system – we wait for the next developments, of which there will be plenty. And, as usual, we urge readers to keep a close eye on the events in Hong Kong, which has emerged as the most important geopolitical hotspot of the year, if not decade.

END

Michael Every discusses the yuan devaluation and what we must be cognizant of in the coming days

(Michael Every/Rabobank)

You Thought Monday Was Dramatic In Markets? Welcome To Tuesday!

Submitted by Michael Every of Rabobank

You thought Monday was dramatic in markets? Welcome to Tuesday!

Fortunately, last night Hong Kong did not see the PLA move in but still recorded widespread anarchy on its streets showing the government is clearly not in control: a fresh statement from Beijing is due today, and one wonders what it can add. Will it be as helpful as the statement from the PBOC yesterday that said they are not weakening their currency due to US trade measures, before qualifying that the weaker CNY–which has shocked markets–was “due to the effects of unilateralist and trade-protectionist measures and the expectations for tariffs against China.” (So, yes, they are weakening the currency due to US measures.)

On the back of that this morning we awake to find that US President Trump–after crying out to the Fed about weaker CNH and CNY–has officially labelled China “a currency manipulator”. Naturally this is already seeing already-reeling markets reel further.

The last time China was assessed by the US Treasury on those grounds was a few months ago, where it was found not to be a currency manipulator as it didn’t meet all three of the US’ own criteria (large bilateral trade surplus – tick; current account surplus as % GDP – no tick; persistent intervention to weaken the currency – no tick). Yet now the CNY is finally moving lower in line with its real fundamentals, it IS labelled a manipulator. The irony!

What this US labelling step means in practical terms is unclear as the Treasury’s guidelines state the US must now work with the IMF to address the problems causing the offending currency to be too weak. In this case, of course, the IMF will point out that while China WAS guilty of currency manipulation for years in the past, and the US said nothing “because free trade”, now that CNY is finding its own level, it clearly isn’t guilty – or at least not of that. Indeed, even if the IMF did put forward some policy suggestions, these would probably be listened to by Beijing as much as they are by Berlin,…which might still be next in line to be designated at the rate we are going.

So what will the US do? If you think the answer is nothing then I have a Chinese-funded bridge to sell you. Far more likely they will move forward with more tariffs or countervailing duties, which we discussed a few months ago as being in the works based on US estimates of what the Real Effective Exchange Rate of country should be. If one looks at the principles involved in the new Counter-Veiling Duties (CVD) policy being mooted by the US, all Washington has to do is say they think CNY should be at 6, or 5, and hey presto! They can slap a further crippling set of duties on China based on the difference between that level and where it is actually trading. Even if it doesn’t work quite like that, we are still going to see far greater protectionism via China.

And what will China do? Well, the CNY fix today makes that clear: at 6.9683 vs. 6.9225 (a 458 pip cut): it is going to push the currency even lower. That obviously opens the door to the nightmare scenario of a downwards spiral in Chinese FX and simultaneous upwards spiral in US tariffs – which I have long flagged as all too possible for under the Cold War scenario I believed was playing out between the US and China (rather than the “trade deal soon!” scenario so many neo-classical economists had been plugging, wrongly, on TV all year).

And what will markets do? Crash.Equities are slumping. They will slump more. Bond yields are tumbling. They will tumble far more. 10-year US Treasuries are at 1.67% at time of writing and are possibly going to test through their global financial crisis low as soon as this week: would you want to bet against a 20bp move over the next four sessions at this rate? At the same time, Aussie 10s are through 1% for the first time, putting pressure on the RBA today, who had only just started to feel smug that their blatant institutional spruiking has at least temporarily stabilised house prices. And that’s just one example.

Worry most about the Chinese property developers who have borrowed heavily in USD unhedged. Worry about other EM USD borrowers too, as EM FX tumbles vs the greenback. And worry about global trade flows, as a stronger USD rumbles through the real economy and US-China divorce smashes supply chains. Of course, JPY is up, and EUR too – which sends its own signal: Europe is indeed turning into Japan in more ways than one!

And worry about whether China can stay in control of this process or not. Yes, it “gains” from a weaker Renminbi. For example, you can argue that with USD500bn of exports to the US, putting a 10% tariff on USD300bn of new Chinese exports, meaning a USD30bn “loss”, can be offset by a 6% depreciation in CNH as 6% of USD500bn is USD30bn: we are already over half way there given CNH is trading at 7.13 today vs. 6.88 a few weeks ago. (Of course, it doesn’t work quite as smoothly as that in reality.)

Yet China can lose a lot here, and more quickly than people think. After all, it has a USD2.2 trillion FX debt pile, half of which is short term; a current-account bill of around USD 3 trillion annually (on the total outflow side); far less than USD3.1 trillion in liquid FX reserves to access; and a banking system with USD 40 trillion in largely CNY-denominated assets that can technically be switched into USD by all involved (capped at USD 50,000 per person per year). They already have draconian capital controls in place, but things could get far, far worse ahead. How long until we see FX rationing, both for individuals and firms? Who would be a priority and who wouldn’t, hypothetically?

That China would take such a risk at the same time as there is pushback against Huawei, against the Belt and Road, and against its claims to the South China Sea, to say nothing of Hong Kong, points to the stress it is under and the cul-de-sac it finds itself in. Yet how a “can’t lose face, won’t lose face” China would react to its own EM FX crisis that humbles it leads us on to other, darker scenarios. And none of them say higher bond yields or higher equities.

And it’s still only Tuesday

end

More escalation against China as Pence is going to sanction top Chinese officials over human rights abuse

zerohedge)

 

VP Pence Signals US Plans To Sanction Top China Officials Over Human Rights Abuse

Having  cancelled his apparently “too hawkish” speech just a few weeks ago, presumably in the hopes of maintaining the trade truce with China, Axios reports that Vice President Mike Pence has signaled that the Trump administration is open to using the Global Magnitsky Act to sanction top officials in Xinjiang, China, where more than 1 million Uighur Muslims are being held in internment camps, according to a Chinese religious freedom advocate who met with Pence at the White House Monday.

As a reminder, in an attempt to justify its treatment of ethnic Uighur and other Muslims in Xinjiang, the Chinese government released a white paper in March detailing the state’s anti-terror activity in the autonomous region, claiming that it has adopted a policy that “strikes the right balance between compassion and severity” in its de-radicalization measures.

According to its statistics, China has arrested 12,995 terrorists in the region since 2014 while also seizing over 2,000 explosive devices. Connected to 4,858 religious activities deemed illegal, a total of 30,645 people are said to have been punished. Furthering the focus on religion, Statista’s Martin Armstrong details that 345,229 copies of illegal religious materials are also listed as having been confiscated. The government says that Xinjiang faces a serious threat from Islamist militants and separatists and cites 30 attacks since 1990 which they classify as acts of terror, claiming the lives of 458 people.

 

Infographic: China's

You will find more infographics at Statista

The Chinese state’s actions in the region remain under international scrutiny. Last year, a United Nations human rights panel said that it had received multiple credible reports that 1 million ethnic Uighurs are being held in what it describes as a “massive internment camp”, under the guise of combating religious extremism. The U.S. mission to the UN tweeted in response to these findings that it is “deeply troubled by reports of an ongoing crackdown on Uighurs and other Muslims in China”, calling on China to “end their counterproductive policies and free all of those who have been arbitrarily detained”.

And now, as Axios details, Bob Fu, founder of ChinaAid, said that Pence also told him that he planned to give a second speech about China in the fall to address religious freedom issues. Beijing has been paying close attention to Pence’s plans for a second speech, as the vice president has been at the forefront of the administration’s confrontation with China. So hawkish was a speech Pence gave in October that the New York Times framed it as a portent of a “New Cold War.”

The headlines, via Axiosprompted selling in stocks as it clearly signals continued escalation of the broader war with China.

Finally, Axios reports that Pence had printed copies of his and Secretary of State Mike Pompeo’s recent speeches on China to demonstrate that the administration has been clear about its views on Xinjiang, Fu said.

Pence’s meeting with the Chinese human rights advocates on Monday came on the same day President Trump took another step to escalate his economic conflict with China. Just hours after the meeting, the Treasury Department labeled China a currency manipulator.

end
I do not look the looks of this:  Beijing warns Hong Kong protesters will be punished…military intervention is possible
(zerohedge)

Tiananmen Square 2.0? Beijing Warns Hong Kong Protesters Will Be ‘Punished’ — Military Intervention Possible

As the situation in Hong Kong continues to deteriorate, Beijing has issued a warning that protesters would soon be punished for “criminal acts,” and has refused to rule out military force to quell ongoing anti-government demonstrations, according to The Telegraph.

According to a spokesman for the Beijing-controlled Hong Kong and Macau Affairs Office, demonstrators are causing “Hong Kong to slide into a dangerous abyss,” adding “As for their punishment, it’s only a matter of time.

The Chinese government will never allow any acts that challenge national unity, sovereignty or security, he said, sternly reminding residents that the People’s Liberation Army was a “strong and reliable force that defends every inch of its territory.”

In a jab at protesters, Mr Yang referred to their main slogan, “Reclaim Hong Kong, revolution of our times,” by reminding them Hong Kong was a part of China, saying, “I want to ask those people shouting this, ‘what of Hong Kong do you want to reclaim? Where exactly do you want to reclaim Hong Kong to?” –Telegraph

 

Meanwhile, over 12,000 Shenzhen police officers conducted a publicly broadcasted crowd-control drill – offering protesters a taste of what’s to come.

“A drill will be held to increase troop morale, practise and prepare for the security of celebrations, [and] maintain national political security and social stability,” according to police.

In live videos of the police drills shown on the Yizhibo network, officers in body armour, helmets and shields confronted groups of people in black shirts and red or yellow construction safety helmets – similar to those worn by Hong Kong protesters – who were holding flags, banners, batons and wooden boards. –SCMP

Shenzhen drill attracted unusual attention as it features scenarios that resemble the ongoing riots in . http://bit.ly/2YobnJc  (Video: Shenzhen News Radio)

Embedded video

Police on Monday fired over 800 rounds of tear gas, 140 rubber bullets and 20 sponge rounds (according to official figures), while 148 people were arrested between the ages of 13 and 63.

Monday represented a significant escalation of violence. Until then, police had fired 1,000 rounds of tear gas, 150 of sponge grenades and 160 rounds of rubber bullets in two months of protests. –SCMP

Hong Kong authorities, meanwhile, have refused to meet any of the protesters’ demands – after what began as a protest against an extradition bill – and has expanded into a general anti-government protest.

Beijing has accused foreign actors – including the United States – of “meddling” in Hong Kong in order to destabilize Chinese rule over the region. Also blamed? Poor family values and education for encouraging degeneracy among the youth, while “stressing that better national education was needed to promote patriotism,” according to the report.

The ominous words came as official state media circulated a video of mainland Chinese police engaging in anti-riot drills in Shenzhen, a city just across the border from Hong Kong, shooting tear gas and charging at protesters dressed in black in scenes that resemble the current clashes.

On Monday, Hong Kong was paralysed with more than 200 flights cancelled, widespread disruption to subway services, and tumult on the roads as protesters cut electricity to traffic lights and flooded main avenues. –Telegraph

end

4/EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

IRAN/CHINA

China;s largest oil company is caught importing Iranian crude. This may be problematic as its parent has considerable assets in the uSA and has it’s stock,  Petro China trades on the NYSE

(zerohedge)

China’s Largest Oil Company Caught Importing Iranian Crude

The Trump Administration’s decision to reimpose sanctions on the Iranian oil trade has dramatically reduced Iranian crude exports – but it hasn’t stopped some of the US’s largest economic rivals from accepting shipments of Iranian crude, according to several media investigations. Not only has China continued to import Iranian crude, so have several other Asian and Mediterranean countries, according to data from several tanker tracking services studied by the New York Times and other media organizations.

Per the NYT, in April 2018, before Trump withdrew from the nuclear deal, Iran exported 2.5 million barrels of oil per day.One year later, that figure was at one million. And in June, after the end of the exceptions or waivers, ships in Iranian ports loaded about 500,000 barrels per day, according to Reid I’Anson, an energy economist at Kpler, a company tracking seaborne commodities.

Of course, this fact isn’t lost on the Trump Administration, which, according to the FThas been tracking the movements of tankers linked to China’s biggest state-run oil company amid signs that the ships are helping to bring in Iranian crude.

China National Petroleum Corp, via its subsidiary, the Bank of Kunlun, has, in recent months, employed a fleet of tankers to move oil from Iran to China.

And an NYT visualization of tanker traffic shows the route some of these tankers take while moving oil from Iran to China and elsewhere in the region.

Below are satellite images of some of these tankers docking at Chinese ports.

Last week, the Treasury Department sanctioned Chinese oil trader Zhuhai Zhenrong for buying oil from Iran. The decision was intended to send a message to other Chinese firms, and anyone else buying Iranian oil who also hoped to do business with the US.

“Any entity considering evading our restrictions, particularly related to Iranian petrochemicals, should take this message seriously,” said one official. “We recently sanctioned Zhuhai Zhenrong…for knowingly engaging in a significant transaction for the purchase or acquisition of crude oil from Iran. This action underscores our commitment to enforcement.”

But targeting CNPC would be an especially serious escalation at a time when tensions between the US and China are nearing a breaking point. Even as satellite data and imagery suggest that the tankers linked to Bank of Kunlun are employing tactics including turning off tracking devices and changing their names.

Any US decision to target CNPC would mark a significant escalation given the company’s status as China’s largest oil producer. Its publicly listed arm, PetroChina, has operations in the US and secondary shares listed in New Yorkin addition to partnerships with international energy companies such as Ineos.

Bank of Kunlun said it was “not involved in the crude oil import business” and denied having “violated any laws or regulations.” But people in Washington familiar with the activities of the bank said it was viewed by the US as a “bad actor.” “Bank of Kunlun has always been the sacrificial lamb for CNPC and, more broadly, for the Chinese government,” said one former senior US intelligence official. “It is a bank that the Chinese government recognises as expendable in some sense.”

And cracking down on the Bank of Kunlun would come with certain risks that might impede the US’s agenda, particularly when it comes to North Korea.

“China is not going to do the US any favours,” said Dennis Wilder, a former top CIA and White House official. “This is the price you pay strategically. You cannot tell China on the one hand to be aligned with you on Iran and North Korea and at the same time decide you’re going to retard or destroy some of their corporations.”

Still, after labeling China a currency manipulator last night, it appears Washington has decided on a hardline approach. Will sanctions on CNPC and the rest of the Chinese energy industry be next?

After all, Beijing has made clear that it has no problem being Iran’s most important lifeline during an extremely difficult time.

 

END

6.Global Issues

 

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

India

The plunge in the yuan causes the Indian rupee to fall as well as many believe there will be global devaluations everywhere.  The Rupee descended further into negative territory on the Kashmir chaos\

(zerohedge)

Indian Rupee Plunges Most In Six Years Amid Trade War And Kashmir Chaos 

The Indian rupee (INR) plunged the most in six years amid turmoil in both global equity and currency markets to start the week.

The rupee fell to 70.74 against the US dollar, could test 71.50 level in the coming weeks.

What sparked the overnight currency chaos was China allowing its yuan to pass 7-per-dollar level for the first time since 2008 after President Trump last week escalated the trade war by slapping a 10% tariff on an additional $300 billion of Chinese imports.

The weakness in the rupee was also intensified by uncertainty over Kashmir, a nationwide economic slowdown, and increasing foreign capital outflows.

Cabinet members met with Prime Minister Narendra Modi on Monday to address currency volatility and a deteriorating situation in Kashmir along the Line of Control (LoC).

India removed the special status of Jammu and Kashmir, a move that is expected to increase the deteriorating security situation in the region, Bloomberg noted.

Home Minister Amit Shah told parliament on Monday that Prime Minister Modi scrapped Article 370 of the constitution that granted a degree of autonomy to Kashmire to draft its laws except in communications, defense, finance, and foreign affairs.

“The worries over the political situation in Kashmir and the yuan depreciation are weighing on the currency,” said Paresh Nayar, currency and money markets head at FirstRand Ltd. in Mumbai.

On Monday evening, India’s Upper House passes a bill splitting Jammu and Kashmir into two different administrative states.

Leading up to Monday’s government order, intense fighting between India and Pakistan flared up late last week through the weekend.

Pakistan Prime Minister Imran Khan on Sunday requested the international community to mediate the developing crisis as India continues to strengthen its military forces in Kashmir.

Khan accused India on Saturday of shelling and using cluster bombs on civilians across densely populated areas on the LoC. He asked the United Nations to monitor the situation.

Several Indian television news outlets have reported that Indian military reinforcements are arriving in the Himalayan territory amid threats of conflict with Pakistan.

The India Times reported Saturday that Indian Armed Forces had deployed howitzer artillery pieces in response to what they say Pakistan has broken ceasefire agreements.

India Today

@IndiaToday


India deploys Bofors guns on LoC . @gauravcsawant joins in for more
LIVE : http://bit.ly/IT_LiveTV

Embedded video

Meanwhile, an economic slowdown has plagued Prime Minister Modi’s economy, as new data from the Reserve Bank of India showed disbursed retail loans were at their lowest level in 1H19 in more than five years.

end

Zimbabwe

Zimbabwe now in total collapse

(zerohedge)

Economic Collapse Imminent: Zimbabwe At ‘Tipping Point’ With ‘Wheels Coming Off’ 

Zimbabwe’s economic situation will continue to sour in 2H19 due to unfavorable weather conditions, foreign currency shortages and widespread power cuts, its finance minister said, as he responded to a deteriorating economic outlook by blacking out inflation statistics through the second half, and finally acknowledged what the International Monetary Fund told him in April: economic turmoil ahead.

Prices of essential goods and services have, in some cases, quadrupled this summer, due to the government renaming the RTGS currency as the Zimbabwe dollar, which has been on a rapid decline amid shortages, including electrical power, petrol products, American dollars, and food, reported Bloomberg.

Many Zimbabweans who supported the toppling of decades-long ruler Robert Mugabe two years ago are discovering that their economic situation is the most serious in a decade.

Emmerson Mnangagwa replaced Mugabe in 2017, he promised millions of Zimbabweans of an economic revival and that we are “open for business.” The sugar high of optimism only lasted for a short time; the effects of money supply expansion through the sale of Treasury bills under Mugabe’s rule has outweighed any positive advancements in the last several years. Mnangagwa outlawed the American dollar in favor of local currency that can’t be traded internationally, effectively making it extremely difficult for international firms to do business in the African country.

“Zimbabwe is at a tipping point and if it falls over the edge it’s going to be quite a long way in coming back,” said Derek Matyszak, a Zimbabwe-based research consultant for South Africa’s Institute for Security Studies. “The wheels are falling off. There is no way out of a Ponzi scheme other than a massive infusion of cash to pay off your creditors.”
*chart

Zimbabwe isn’t the only country suspending its inflation statistics for the next six months. Venezuela has also done the same, after inflation in the South American country printed a red hot 1,698,488% in 2018. Zimbabwean officials need to collect comparable data since the introduction of the new currency in February. The last time this happened, it was 2009, when the country dropped the Zimbabwe dollar in support of American dollars after inflation climbed to 500 billion percent.

Steve H. Hanke, a professor of applied economics at the Johns Hopkins University in Baltimore, told Bloomberg that if the black-market exchange rate is used, Zimbabwe’s annual inflation rate is 558%, three times more than the official rate published by the government.

Jee-A van der Linde, an economist at NKC African Economics in Paarl, South Africa, said abandoning the official annual rate is “no real loss from an analytical perspective,” adding that “these elevated inflation readings did little more than create panic and damage what little confidence was left.”

Countries that are in crisis tend to halt the publication of inflation data. In 2013, the IMF condemned Argentina for manipulating its inflation data.

The dollar peg was dropped in February, and the return of the Zimbabwe dollar in June has led to the rapid depreciation of the currency officially trading at 9.0347 to the dollar on Aug. 6.

The government has said it had no other alternative but to reintroduce its own currency amid foreign-currency shortages, something that Hanke objects.

“The Achilles heel is the introduction of the new currency to the exclusion of the dollar,” he said. “They have decided to go in the completely opposite direction and claimed it’s the best thing since sliced bread and it’s going to be an absolute disaster.”

Japhet Moyo, secretary-general of the Zimbabwe Congress of Trade Unions, has warned that cost of essential services jumped 400% this year while pay has risen only by 10%. This has left many millions of people broke and starving.

About 59% of rural Zimbabweans, or about 5.5 million people, don’t have food, a new report by the United Nations and aid groups said last month.

ZimLive@zimlive

These military trucks and buses have been delivered to Zimbabwe – a country that has no food to feed 5.5m people hit by drought; a country that has no electricity, fuel, bread and medicines. A country whose leader urges citizens to take the pain while flying private jets

Embedded video

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It’s entirely possible that the return of street protests over collapsing economic conditions could flare-up in the coming months as there is only so much Zimbabweans will tolerate before an outright economic collapse.

 

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

Euro/USA 1.1199 DOWN .0042 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /GREEN

 

 

USA/JAPAN YEN 106.34 UP 0.735 (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 1.2179   UP   0.0023  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3202 DOWN .0013 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  TUESDAY morning in Europe, the Euro FELL BY 42 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1199 Last night Shanghai COMPOSITE CLOSED DOWN 43.94 POINTS OR 1.56% 

 

//Hang Sang CLOSED DOWN 175.08 POINTS OR 0.67%

/AUSTRALIA CLOSED DOWN 2,45%// EUROPEAN BOURSES ALL GREEN

 

Trading from Europe and Asia

EUROPEAN BOURSES GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 175.08 POINTS OR 0.67%

 

 

/SHANGHAI CLOSED DOWN 43.94 POINTS OR 1.56%

 

Australia BOURSE CLOSED DOWN. 2.45% 

 

 

Nikkei (Japan) CLOSED DOWN 134.98  POINTS OR 0.67%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1464.75.10

silver:$16.39-

Early MONDAY morning USA 10 year bond yield: 1.74% !!! UP 4 IN POINTS from MONDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.29 UP 4  IN BASIS POINTS from MONDAY night.

USA dollar index early TUESDAY morning: 97.53 DOWN 6 CENT(S) from  MONDAY’s close.

This ends early morning numbers TUESDAY MORNING

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And now your closing TUESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.26% DOWN 1 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.18%  UP 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.23%//UP 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,51 DOWN 2 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 128 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.54% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.05% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR TUESDAY

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

Euro/USA 1.1196  DOWN     .00046 or 46 basis points

USA/Japan: 106.36 UP .745 OR YEN DOWN 75  basis points/

Great Britain/USA 1.2153 DOWN 5 POUND DOWN 5  BASIS POINTS)

Canadian dollar DOWN 26 basis points to 1.3239

 

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The USA/Yuan,CNY: AT 7.0198    0N SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0575  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.5303 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.18%

 

Your closing 10 yr US bond yield UP 3 IN basis points from MONDAY at 1.74 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.27 UP 2 in basis points on the day

Your closing USA dollar index, 97.59 DOWN 17  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 56.31  0.78%

German Dax :  CLOSED DOWN 86.66 POINTS OR .74%

 

Paris Cac CLOSED DOWN 3.94 POINTS 0.08%

Spain IBEX CLOSED DOWN 62.90 POINTS or 0.72%

Italian MIB: CLOSED DOWN 121.28 POINTS OR 0.58%

 

 

 

 

 

WTI Oil price; 54.34 12:00  PM  EST

Brent Oil: 59.72 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    65.31  THE CROSS LOWER BY 0.17 RUBLES/DOLLAR (RUBLE HIGHER BY 17 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.54 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

This ends the stock indices, oil price, currency crosses and interest rate closes for today 4:30 PM

Closing Price for Oil, 4:00 pm/and 10 year USA interest rate:

WTI CRUDE OIL PRICE 4:30 PM :  53.67//

 

 

BRENT :  59.10

USA 10 YR BOND YIELD: … 1.71 down 1 basis point//dangerous and did not buy the huge gain in the Dow…

 

 

 

USA 30 YR BOND YIELD: 2.24..down 2 basis points and did not buy the huge gain in the Dow!

 

 

 

 

EURO/USA 1.1198 ( down 43   BASIS POINTS)

USA/JAPANESE YEN:106.52 up .919 (YEN down 92 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.63 UP 11  cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2162 UP 5  POINTS

 

the Turkish lira close: 5.5207

 

 

the Russian rouble 65.30   UP 0.18 Roubles against the uSA dollar.( UP 18 BASIS POINTS)

Canadian dollar:  1.3271 DOWN 57 BASIS pts

USA/CHINESE YUAN (CNY) :  7.0198  (ONSHORE)/ still deadly

 

 

USA/CHINESE YUAN(CNH): 7.0544 (OFFSHORE)  still deadly.

 

German 10 yr bond yield at 5 pm: ,-0.54%

 

The Dow closed UP 311.78 POINTS OR 1.21%

 

NASDAQ closed UP 107.23 POINTS OR 1.39%

 


VOLATILITY INDEX:  19.89 CLOSED DOWN 4.70

LIBOR 3 MONTH DURATION: 2.209%//libor dropping like a stone

 

USA trading today in Graph Form

Gold Gains As China ‘Stability’ Sparks Dead-Cat-Bounce In Stocks

Despite stocks still being down 5% from pre-Powell levels, today’s dead-cat-bounce has prompted a resurgence of ‘everything is awesome’ with several speaking heads proclaiming “the resilience” of markets…

 

It all began when China fixed the yuan a smidge stronger than expected…

 

China stocks managed a small bounce in the afternoon but it was not enough to recover from the US-driven catch down…

 

Hong Kong stocks are down 7 of the last 8 days (its biggest drop since Feb 2018) back in the red for 2019…

 

European stocks did not play along with US markets, ending very weak into the close…

 

US Equities had their momentum ignited and despite a pull back into the EU close (and then reacceleration after), managed to squeeze hold gains with Nasdaq best…

 

NOTE – this was S&P’s best day in 2 months and first up-day in the last seven.

But still ugly on the week…

 

After Europe closed, the short-squeeze in US stocks began…

 

 

Nasdaq led the day, bouncing off a key trendline level…

 

Dow futures soared over 900 points off the overnight lows hit after UST called China a currency manipulator… (seemed like Dow 26k was all the algos wanted)

 

NOTE – Dow futs plunged right after hours, erasing yesterday’s late-day 200 point rampathon – before the currency manipulator calls.

Dow cash bounced off its 200DMA…

 

 

Today’s gains were led by defensives…

 

 

On the heels of a proposed Opioid settlement, drug stocks were monkeyhammered…

 

NFLX is back in a bear market, down 20% from July highs and down 16 of the last 19 days…

 

BYND Barfed back to its secondary offering levels…down 35% from record highs

 

 

Credit spreads tightened very very modestly on the day…

 

Bonds and stocks decoupled during the US day session – both bid…

 

Treasury yields rose on the day, with the short-end underperforming (2Y +4bps, 30Y +1bps)… but remain dramatically lower on the week…

NOTE – 30Y yields slipped to unchanged from the US equity cash close.

 

The yield curve did not steepen, staying at its most inverted of the cycle…

 

Markets are pricing in 2.5 more rate-cuts in 2019 (completely ignoring Powell’s insurance cut last week) – not at all what Jim Bullard was hinting at today…

 

The market is once again getting excited about the prospect of a 50bps cut in September…

 

The Dollar Index found support at pre-Powell levels and rallied today…

 

Cryptos ended lower on the day – despite a big pump-and-dump intraday…

 

Bitcoin spike above $12k intraday…

 

Oil was worst as the dollar rallied but PMs managed gains…

 

Gold was bid back up to overnight highs after tumbling on the CNY Fix…

 

Oil prices plummeted late on with WTI back below $54…

 

WTI closed in a bear market, down 21% from April highs…

 

Finally, with Negative-yielding debt now over $15 trillion, bitcoin and bullion seem like solid sanity trades…

The Value Line Geometric Composite (VLG), an index that tracks the median U.S. stock performance among a universe of roughly 1800 stocks, is at a critical level…

 

And as for stocks, its time to party like its 1998…

And so to summarize:

China fixed the yuan slightly stronger than expected and US equity markets soared rather unbelievably… but Chinese stocks did not, Hong Kong stocks did not, European stocks did not, the dollar rallied, crude crashed, gold gained, bonds were bid even as stocks squeezed higher, and Jim Bullard poured cold water on hopes for ever more rate-cuts. So everything else in the world was saying this is not a reduction in rhetoric, but US mega-tech stocks “know better.”

end

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

Early last night turmoil in Asia.  That ended once China fixed its yuan currency higher

(zerohedge)

Turmoil Accelerates As Asia Opens, Traders Scream For More Fed Rate-Cuts

Dow futures are down over 650 points from the cash close, UST 10Y yields are down 5bps to a stunning 1.67%, and Yuan has plunged to a fresh record 7.1350… investors are suddenly demanding more rate-cuts…

The US yield curve has also crashed further to its most inverted since March 2007

 

Asian markets are a bloodbath.

Aussie 10Y Yields drop below 1% for the first time ever…

Korea’s KOSPI is back at the same levels it was at in July 2007…

Japan’s Nikkei has erased all of 2019’s gains…

*IRON ORE FUTURES EXTEND COLLAPSE, SLUMP 3.3% TO $92.60/TON

Traders are now demanding 2.8 more rate-cuts in 2019… showing that Powell’s move last week was totally useless…

This is chaos! Will Powell go full-Bernanke and announce an emergency rate-cut?

And so to summarize:

China fixed the yuan slightly stronger than expected and US equity markets soared rather unbelievably… but Chinese stocks did not, Hong Kong stocks did not, European stocks did not, the dollar rallied, crude crashed, gold gained, bonds were bid even as stocks squeezed higher, and Jim Bullard poured cold water on hopes for ever more rate-cuts. So everything else in the world was saying this is not a reduction in rhetoric, but US mega-tech stocks “know better.”

END

b)MARKET TRADING/USA/MORNING

stocks rebound as Chinese authorities state that they will not use the yuan as a weapon against Trumps’ tariffs. Do not believe them. They will let the yuan fall especially if they allow market forces to determine its value

(zerohedge)

Stocks, Yuan Pop As PBOC Issues Statement Claiming ‘All Is Well’

US equity futures popped higher along with the offshore yuan after PBOC issued a brief statement claiming that it is not a currency manipulator and tells foreign firms that yuan won’t keep falling.

As Reuters reports, China firmly opposes a U.S. decision to label it a currency manipulator, its central bank said on Tuesday, adding that Beijing has not used and will not use the yuan to cope with trade frictions with the world’s biggest economy. Designating China as a currency manipulator seriously harms international rules, the People’s Bank of China (PBOC) said in a statement.

Stocks, already rebounding overnight, gained a little more…

And yuan…


However, this is farcical because of course Chinese authorities do not want to make the yuan a one-way bet and entirely lose control. As we tweeted last night, there are far more serious things PBOC could do if it was serious about stalling the Yuan’s freefall…

zerohedge@zerohedge

If Yuan pressure was external, and if China really wanted it to trade inside 7.00 it would just hike overnight repo to 1000% and all the shorts would die

But it isn’t, as Bloomberg notesassurances from China’s central bank that it won’t use the yuan to fight a trade war with the U.S. have fallen on deaf ears.

Timeline Then

  • April 2015: Premier Li Says China Doesn’t Want Devaluation
  • May 2015: PBOC’s Yi Says Devaluation Not Necessary
  • August 2015: Yuan Devaluation Jolts Global Markets

Timeline Now

  • April 2019: Xi Says China Won’t Pursue Harmful Yuan Devaluation
  • May 2019: PBOC Pledges Steady Yuan
  • Aug. 5, 2019: China Lets Yuan Tumble Past 7 Per Dollar as Trade War Escalates
  • Aug. 5, 2019: PBOC’s Yi says China Won’t Use FX as Tool in Trade Dispute

Remember, it’s different this time.

 end

ii)Market data/USA

Labour market slowing down as job openings drop to a 4 month low

(zerohedge)

Labor Market Slowing: Job Openings Drop To 4 Month Low As Hiring Slows Most In 2 Years

Just in case the last few payrolls reports weren’t sufficient to inform the general public that the US economy is slowing, moments ago we got the latest JOLTS which confirms that the US labor market is going through a rough patch, as the total number of job openings printed at 7.348 million, which while above the 7.326 million expected, was -36K below the upward revised May print of 7.384 million, and the lowest since February.

 

That said, even with the slowing number of job openings, there was still more than 1.3 million more job opening than unemployed workers.

 

Perhaps more concerning is that for another month, we saw continued decline in the number of hires, which slid by 58K to 5.702MM, roughly in line with what the payrolls implied number suggested…

 

… but it was also 2.2% below the year-ago print, resulting in the biggest percentage decline in the number of hires year over year as the job market clearly slows.

 

Finally, the last concerning indicator was the so-called “take this job and shove it indicator”, the total level of “quits” which shows worker confidence that they can leave their current job and find a better paying job elsewhere. This number showed another decline, this time by 45K workers, to 3.433 million, a new 2019 low, suggesting that US workers are becoming increasingly unsure they can find a better paying job elsewhere.

 

end
Another good indicator that the economy in the uSA is faltering in total contrast to what the clowns at the Fed are seeing:
traffic at the railroads are signalling a broad industrial showdown.
(zerohedge)

Derail: Traffic Declines Across US Railroads Signals Broad Industrial Slowdown

New data from the Association of American Railroads (AAR) reported US Class I rail traffic for the week ended July 27, of 534,498 carloads and intermodal containers, down 4.4% compared with the same week last year, reported Railway Age.

The slowdown in rail traffic is the result of a broad-based industrial downturn that is hitting American manufacturers, originating from Asia and Europe as a global synchronized structural decline. Trade disputes between the US and China have accelerated the downturn on almost every continent, sending world trade volumes lower.

Total carloads for the week were 261,706 carloads, declined 3.5% YoY, while US weekly intermodal container volume was 272,792 for the week, slipped 5.3% YoY.

About 70% of carload commodity groups posted negative YoY change versus the same week in 2018. Only nonmetallic minerals, petroleum and petroleum products, and “other” posted gains for the same week in 2018.

For the first 30 weeks of 2019, railroads reported the cumulative volume of 7,549,879 carloads, down 3.2% from last year. Intermodal containers for the first 30 weeks posted 7,963,475 units, down 3.6% from last year. All rail traffic combined for the first 30 weeks this year was 15,513,354 carloads and intermodal container units, a drop of 3.4% compared to last year.

One of the main reasons behind the sudden rail decline in the US could be the broad-based industrial slowdown that started shifting US manufacturing PMIs lower in late 2018.

Economic Cycle Research Institute’s (ECRI) US Leading Index of Manufacturing PMIs (USLIMPMI) anticipated the current cyclical industrial downturn in late-2017, has since shown up in declining ISM and Markit manufacturing PMIs.

The USLIMPMI now points to an industrial slowdown that is gaining momentum across the country. ISM PMI recently slipped to a nearly-three-year low and the Markit PMI fell to a nearly-ten-year low in July. This weakness in growth will further lean on rail volume through summer into fall.

The industrial slowdown isn’t limited to just the US; it started in Asia and then spread into Europe in 1Q18. Global manufacturing surveys are signaling growth is over (and in most cases, outright contraction is upon us).

JPMorgan’s Global Manufacturing PMI fell to its lowest level for over six-and-a-half years and posted back-to-back sub-50.0 readings for the first time since the second half of 2012.

Rail freight is alternative data that gives us a more transparent measurement of what’s happening in the real economy, without government numbers that could be significantly altered for a political agenda

The decline in rail freight is an ominous sign that the economy is headed for a cycle of vulnerability that could trigger a shock so great that a recession would shortly follow.

iii) Important USA Economic Stories

Goldman Sachs, has now capitulated and believes that:

1. no trade deal before the 2020 election

2 expect 3 rate cuts

3. turmoil in the markets

(goldman Sachs)

Goldman Capitulates: Sees No Trade Deal Before 2020 Election, Now Expect Three Rate Cuts

As late as last December, Goldman was expecting four rate hikes in 2019. Then, as recently as mid-June, the “smartest men in the Goldman room”, did not expect the Fed to cut rates at all in July and September. Of course, all that changed when it became clear that “Powell has thrown in the towel”, and will follow the demands of the president and the whims of the market, resulting in the first “mid-cycle” rate cut last month in over a decade.

And now, Goldman has once again shown that its forecasting ability is the functional equivalent of a coin toss, when late on Monday night Goldman economist David Mercile said Goldman no longer expects the US and China to agree on a deal to end their trade war before the November 2020 presidential election as policymakers from the world’s largest economies are “taking a harder line”.

On the US side, press reports indicate that President Trump made the decision to raise tariffs despite the strong objections of all but one of his advisors, Director of the Office of Trade and Manufacturing Policy Peter Navarro, and threatened to lift tariff rates even further to “well beyond 25%” if necessary. Just this evening, the Treasury Department took the further step of designating China a currency manipulator. While we had previously assumed that President Trump would see making a deal as more advantageous to his 2020 re-election prospects, we are now less confident that this is his view.

On the Chinese side, the currency depreciation past the symbolically important level of 7 yuan per dollar and the announcement that China has suspended purchases of US agricultural goods added up to a swift and meaningful response. News reports suggest that Chinese policymakers are increasingly inclined not to make major concessions and instead to wait until after the 2020 US presidential election to resolve the trade dispute if necessary.

As a result, a trade deal now looks far off. Press reports indicate that trade talks are going poorly. The White House appears increasingly unlikely to accept a deal that does not include major structural reforms, and Chinese policymakers appear increasingly unlikely to accept a deal that does not include a major immediate reduction in tariffs. This has made a more symbolic deal consisting mainly of a Chinese commitment to buy more US exports less realistic.

As a result, Goldman’s “base case is now that no deal will be reached before the 2020 election. We expect the newly announced 10% tariffs on the last $300bn to remain in place on Election Day, and other forms of tit-for-tat retaliation are possible along the way.”

 

In parallel with this extended trade war, the bank has extended its prior forecast of two rate cuts in 2019, and now expects two back-to-back rate cuts from the Fed: “In light of growing trade policy risks, market expectations for much deeper rate cuts, and an increase in global risk related to the possibility of a no-deal Brexit, we now expect a third 25bp rate cut in October, for a total of 75bp of cuts.

Goldman explains that “the balance of risks has shifted enough to make a third 25bp rate cut in October the most likely outcome, for a total of 75bp of cuts including the July cut.” Specifically, for the September meeting, Goldman sees a 75% chance of a 25bp cut, a 15% chance of a 50bp cut, and a 10% chance of no cut. For the October meeting we see a 50% chance of a 25bp cut, a 10% chance of a 50bp cut, and a 40% chance of no cut.

This is contrary to the message the Fed was trying to convey, as Mericle thinks “the FOMC most likely envisioned at its July meeting that rate cuts would eventually total 50bp. This strikes us as the best guess of what Chair Powell meant by a “mid-cycle adjustment” to “adjust policy to a somewhat more accommodative stance over time,” as well as the most likely compromise on a divided committee in which many participants were skeptical of the case for cutting at all.”

So picking up where Goldman left off last week when it tried to infer what it would take for the Fed to stop cutting rates, the bank now says that “for rate cuts to stop, Fed officials will eventually have to withstand White House demands and perhaps bond market expectations as well” and it adds that by the December meeting “the FOMC is likely to stop.”

By that point we expect core PCE to stand at 1.9% as of the October print, with tracking estimates based on the November CPI at 2%. We also think some FOMC participants would push back harder against rate cuts that summed to 100bp or more, an amount that in the past has been reserved for situations in which there was a strong chance that the economy was already headed into recession.

Of course, this being a Goldman forecast, the most likely outcome is whatever Goldman does not expect as a baseline (sorry, but that’s just the bank’s own dismal predictive track record). And amusingly enough, Goldman concedes as much saying that it sees “risks in both directions.”

There is still some chance that the White House will not proceed with the latest threatened escalation, perhaps in view of recent market moves. In the other direction, further increases in tariff rates down the road—say from 10% to 25% on the upcoming round—would increase the odds of deeper cuts.

It is hardly a surprise that Trump would like to keep escalating the trade war just to get even more rate cuts, but the emerging risk as BofA explained yesterday is that Trump slows down the US, and global, economies so much that no amount of easing, or bond buying, by the Fed will be able to offset it. One thing, however, is certain: the next 16 months will be especially interesting for markets.

end
Trump hints at a 3rd farm bailout
(zerohedge)

“China Will Not Be Able To Hurt Them”: Trump Hints At Third Farm Bailout

Now that Beijing has cancelled the round of ag purchases promised by President Xi in Osaka, President Trump appears to be promising yet another farmer bailout (what would be the third under his administration) next year, if necessary.

Donald J. Trump

@realDonaldTrump

As they have learned in the last two years, our great American Farmers know that China will not be able to hurt them in that their President has stood with them and done what no other president would do – And I’ll do it again next year if necessary!

end

Another Bricks and Mortar sent to the morgue to which we will set shiva for them:

(zerohedge)

Retail Apocalypse Claims Latest Victim: Barney’s Files For Bankruptcy; Blames Rising Rents, Fewer Customers

Ultra luxury department store chain Barney’s probably did not use a plush, Louis Vuitton letter pouch in which to submit its Chapter 11 filing at Bowling Green yesterday, but the result is the same: the iconic Madison Avenue store officially filed for bankruptcy protection and laid out its plans to shut down most of its stores, according to Bloomberg. The company cited rising rents and fewer visitors to its stores as the reasons for its restructuring.

In its bankruptcy filing, the company listed assets of between $100 million and $500 million and liabilities of between $100 million and $500 million. This will be its second bankruptcy after going bankrupt in 1996 after it fell out with a Japanese partner.

The Chapter 11 filing will allow Barney’s to stay open while it finds a buyer for its slimmed-down business and negotiates with landlords. The company is owned by billionaire Richard Perry and has secured $75 million in new capital to help with its financial commitments.

Chief Executive Officer Daniella Vitale said: “Like many in our industry, Barneys New York’s financial position has been dramatically impacted by the challenging retail environment and rent structures that are excessively high relative to market demand.”

Many of the company’s most famous stores, including the ones on Madison Avenue and in downtown New York City, are going to remain open. Stores in flagship locations like Beverly Hills, San Francisco and Boston will also stay open, as willl two of the company’s warehouse locations, while its online operations will also continue to operate. Stores in Chicago, Las Vegas and Seattle will close, as well as five smaller concept stores and seven of the company’s warehouse locations.

George Angelich, partner at restructuring law firm Arent Fox, said: “Aside from the high price tags on goods, this department store faces the same challenges as any department store. As rents increase and consumers shift to buying online, it becomes very challenging to maintain profitability.”

The warning signs were there, especially as the company tried to avoid bankruptcy by finding a partner or a buyer over the last several weeks. It failed.

Barney’s was four years away from its hundred year anniversary as a Manhattan company.

The company has sought to downsize its Madison Avenue store to reduce its rent, which tripled this year, which is bizarre because such predatory rent hikes only succeed in putting the tenants out of business.

MIII Partners and lawyers at Kirkland & Ellis are the two groups assisting Barney’s with its restructuring.

end

iv) Swamp commentaries)

Google has too much control.  They no doubt will be doing their part trying to block Trump from being elected in 2020

(zerohedge)

“We Are Watching Google Very Closely”: Trump Slams Search Giant For ‘Making Sure He Loses In 2020’ 

President Trump slammed Google on Tuesday morning in a three-part tweetstorm over allegations by a former engineer that the company will do everything they can to make sure he doesn’t win again in 2020.

Trump explained how CEO Sundar Pichai “was in the Oval Office working very hard to explain how much he liked me, what a great job the Administration is doing, that Google was not involved with China’s militarythat they didn’t help Crooked Hillary over me in the 2016 Election, and that they are NOT planning to illegally subvert the 2020 Electiondespite all that has been said to the contrary.”

It all sounded good until I watched Kevin Cernekee, a Google engineer, say terrible things about what they did in 2016 and that they want to “Make sure that Trump losses [sic] in 2020,” Trump continued.

Donald J. Trump

@realDonaldTrump

@sundarpichai of Google was in the Oval Office working very hard to explain how much he liked me, what a great job the Administration is doing, that Google was not involved with China’s military, that they didn’t help Crooked Hillary over me in the 2016 Election, and that they…

“Lou Dobbs stated that this is a fraud on the American public, Trump continued. @peterschweizer stated with certainty that they suppressed negative stories on Hillary Clinton, and boosted negative stories on Donald Ttump [sic]. All very illegal. We are watching Google very closely!

On Monday night, Trump tweeted a clip of former Google engineer Kevin Cernekee explaining how the company was distrought after Trump won in 2016 – “Google executives went up on a stage right away and cried – tears literally streaming right down their faces over the fact that President Trump won. They vowed that it would never happen again, and they want to use all the power and all the resources they have to control the flow of information to the public and make sure that Trump loses in 2020.

Donald J. Trump

@realDonaldTrump

Check out what @Google is up to for the 2020 election!

Embedded video

Trump then tweeted an interview with investigative journalist Peter Schweizer, who explained that Google suppressed negative stories about Hillary Clinton and boosted negative stories about Trump. He added that in 2016, Google thought Trump would lose and didn’t need to tip the scales as much. In 2020, they’ll “go all in,” according to Schweizer.

Donald J. Trump

@realDonaldTrump

Thank you @PeterSchweizer!

Embedded video

In June, Google’s head of “Responsible Innovation,” Jen Gennai, was caught on an undercover video (which Google’s YouTube has deleted) admitting that the company is programming its machine learning algorithms in order to avoid the “next Trump situation.” 

We all got screwed over in 2016, again it wasn’t just us, it was, the people got screwed over, the news media got screwed over, like, everybody got screwed over so we’re rapidly been like, what happened there and how do we prevent it from happening again,” said Gennai.

James O’Keefe@JamesOKeefeIII

Project Veritas is RIDING A WAVE. A movement for transparency from big tech companies who engage in privacy violations, political censorship, and other data abuses. We recently published a trove of internal docs from Google, along with an insider interview and undercover footage

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Gennai responded, saying in a Mediumpost that she had been taken out of context.

James O’Keefe@JamesOKeefeIII

Not only is she not denying it, the Google Executive actually just stated, “I was having a casual chat with someone at a restaurant and used some imprecise language. Project Veritas got me. Well done.” Seethread with @cwarzel of NYT for extreme rationalizations for non coverage. https://twitter.com/Cernovich/status/1143319732126224384 

Mike Cernovich

@Cernovich

The Google employee seen in the Project Veritas video is not denying what she’s captured on video saying.

Does the corporate media keep pretending this story doesn’t exist or do they run with the spin of “out of context” and “casual” conversation?

That said, a Google insider came forward to Veritas, confirming what they filmed Gennai admitting; that the company is using “Machine Learning Fairness” as just one of several political tools used to promote their political agenda by combating “algorithmic unfairness.”

James O’Keefe@JamesOKeefeIII

“Internal only” documents at Google show Goal to establish a “single point of truth” for definition of news across Google products. @valstreit POC. https://www.projectveritas.com/2019/06/24/insider-blows-whistle-exec-reveals-google-plan-to-prevent-trump-situation-in-2020-on-hidden-cam/ 

View image on TwitterView image on Twitter

Sundar Pichai says told Trump that none of this is happening, however – so it must be true!

END

this is not April fools…Peter Strzok sues the Dept of Justice and FBI over his firing

(zerohedge)

Peter Strzok Sues DOJ, FBI Over Firing For Anti-Trump Texts

Anti-Trump former FBI agent Peter Strzok is suing the Justice Department, FBI, Attorney General William Barr and FBI Director Christopher Wray after he was fired over a trove of text messages between he and his paramour, former FBI lawyer Lisa Page.

In a suit filed Tuesday, Strzok claims that the FBI caved to “unrelenting pressure” from President Trump when he was fired, according to the Associated Press.

The suit from Peter Strzok also alleges he was unfairly punished for expressing his political opinions, and that the Justice Department violated his privacy when it shared hundreds of his text messages with reporters. –Associated Press

“The campaign to publicly vilify Special Agent Strzok contributed to the FBI’s ultimate decision to unlawfully terminate him,” reads the lawsuit. “as well as to frequent incidents of public and online harassment and threats of violence to Strzok and his family that began when the texts were first disclosed to the media and continue to this day.”

Strzok’s lawsuit accuses the government of violating his First and Fifth Amendment rights by firing him over the text messages, and then depriving him of due process to challenge his ouster. Moreover, Strzok says that the DOJ’s decision to transmit the incendiary messages to reporters before Congress had a chance to see them was “deliberate and unlawful,” and a violation of the Privacy Act.

Strzok’s anti-Trump sentiment came to light after an internal investigation revealed he and Page had exchanged approximately 50,000 text messages – many of which contained obvious animus towards then-candidate Donald Trump.

Strzok’s position in the bureau had been precarious since last summer, when Inspector General Michael E. Horowitz told Special Counsel Robert S. Mueller III that the lead agent on his team had been exchanging anti-Trump messages with an FBI lawyer. The next day, Mueller expelled Strzok from the group.

The lawyer, Lisa Page, had also been a part of Mueller’s team, though she left a few weeks earlier and no longer works for the FBI. She and Strzok were having an affair. –Washington Post

Perhaps the most alarming of the exchanges mentions an “insurance policy” in the event Trump is elected.

I want to believe the path you threw out for consideration in Andy’s office – that there’s no way he [Trump] gets elected – but I’m afraid we can’t take that risk.” Strzok wrote to Page, adding “It’s like a life insurance policy in the unlikely event you die before you’re 40.”

In another text exchange, Strzok tells Page: “I am riled up. Trump is a f*cking idiot, is unable to provide a coherrent answer,” and “I CAN’T PULL AWAY, WHAY THE F*CK HAPPENED TO OUR COUNTRY (redacted)??!?!

Page then messages Strzok, saying “And maybe you’re meant to stay where you are because you’re meant to protect the country from that menace. (links to NYT article), to which Strzok replied “I can protect our country at many levels.”

Shannon Bream

@ShannonBream

Strzok/Page texts

LP – And maybe you’re meant to stay where you are because you’re meant to protect the country from that menace. (links to NYT article)

PS – … I can protect our country at many levels, not sure if that helps

2,515 people are talking about this

And now, it looks like Strzok is making use of his nearly $450,000 GoFundMe contributions.

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

China Asked State Buyers to Halt U.S. Agriculture Imports

The firms will wait and see how trade talks progress

https://www.bloomberg.com/news/articles/2019-08-05/china-asked-state-buyers-to-halt-u-s-agriculture-imports

Soybeans went limit up on Monday in China.  China needs to feed its massive population at reasonable prices.  A hungry populace leads to rebellion.  This is why Asian nations are mercantilist.  They have to feed inordinately large populations.

Bloomberg Next China@next_china: Hong Kong stocks match their worst losing streak in 22 years

-All 50 stocks on the Hang Seng index are down

-The offshore yuan weakens to a record low, past 7 per dollar

@realDonaldTrump: China dropped the price of their currency to an almost a historic low. It’s called currency manipulation.” Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!…

    China is intent on continuing to receive the hundreds of Billions of Dollars they have been taking from the U.S. with unfair trade practices and currency manipulation. So one-sided, it should have been stopped many years ago!

@Jkylebass: If the Chinese stop propping up their currency, it will devalue more than 40% @realDonaldTrump . It’s funny that he doesn’t understand that the Chinese act to prop it up. And the Chinese can’t say “we are trying to hold this entire charade together while he accuses us of manip!”

Bitcoin surged 14%.  Chinese nationals are frantically trying to get money out of China & Hong Kong.

DJT, ala Reagan vs. USSR in ‘80s, is prosecuting an economic war against a very vulnerable China.

@IngrahamAngle: … we sent about $160 billion in US exports to China.  They sent $500 billion worth of goods here.  Do the math—we have a $20 trillion economy.  Not a big hit to us. Big for them.

Hong Kong’s leader says the city is verging on ‘a very dangerous situation’

Carrie Lam, Hong Kong’s embattled leader, says the “extensive disruptions in the name of certain demands” have “seriously undermined Hong Kong’s law and order.”…

https://www.cnbc.com/2019/08/05/hong-kong-leader-carrie-lam-city-verging-on-very-dangerous-situation.html

Violent Chaos Breaks Out In Hong Kong: Police Stations Set On Fire, Triads Beat Protesters, City Paralyzed     https://www.zerohedge.com/news/2019-08-05/hong-kong-unravels-flights-canceled-police-stations-set-fire-and-triads-are-back

NY Post Editorial Board: Beijing is prepping for a massacre in Hong Kong: time for the West to put human rights ahead of free trade – the People’s Republic is massing police and soldiers just across the border. Message: If the protesters don’t quit, a bloodbath is coming…[More significant than most realize]

https://nypost.com/2019/08/03/beijing-is-prepping-for-a-massacre-in-hong-kong-time-for-the-west-to-put-human-rights-ahead-of-free-trade/

US and European stocks hit session lows 19 minutes before the European close.  The obligatory rally into the European close, after a morning decline, appeared.  The rally ended 5 minutes before the close.  ESUs and stock then proceeded to make new lows.  The Noon Balloon also quickly reversed into a decline that generated new session lows.  It was very telling that all rally attempts quickly failed.  This suggests that market psychology is changing.  The Powell Put is not the security blanket that it used to be – and the market is in search of the level at which it will appear.

The session bottom appeared at 14:09 ET.  A meaningful contra-trend rally appeared due to this:

@money_china: Trump accepts Xi’s invitation to visit China: Xinhua

But, the above headline was fake news.  It was from a Reuter’s story on April 7, 2017

Trump accepts Xi’s invitation to visit China: Xinhua

https://www.reuters.com/article/us-usa-china-invitation-idUSKBN1790UG

About half of the late rally was lost when traders realized the above headline was fake news.  However, another rally materialized during the final 25 minutes of trading.  The fake news headline apparently stopped the decline by getting algos and lemmings to buy, which changed the psychology.

Europe’s STOXX Bank Index tanked to its lowest level since July 2016.  The STOXX Tech Index declined 2.91%.  Its two-day decline of 6.58% was the worst two-day performance since February 2016.

UK] Department stores suffer in worst July retail sales on record [3 months to July -1.3% y/y]

https://www.ft.com/content/93ca283c-b772-11e9-8a88-aa6628ac896

Yesterday, North Korea fired two more missiles, the fourth firing in the past two weeks.  Undoubtedly, this was done at the direction of Xi to irk Trump.

The huge risk now is that runs develop on Chinese banks due to accelerating capital flight.

As we stated in Monday’s missive, the daily trend for stocks is down; but there will be vicious rallies on short covering and FOMO buying…  This is a big vacation weekin a thin market…

Traders will try to affect a Turnaround Tuesday to the upside after the probable early carnage, abetted by the expectation that uber-dove and determined stock market manipulator James Bullard, whose part-time job is being the St. Louis Fed President, will issue his usual positive verbal intervention.

The S&P 500 Index low of 2728.81 on June 3, 2019 is critical support.  This is the point of no return.

Durham investigators acquire audio deposition of Joe Misfud, man at center of Russia ‘witch hunt’ “I can report absolutely that the Durham investigators have now obtained an audio-taped deposition of Joseph Mifsud where he describes his work, why he targeted Papadopoulos, who directed him to do that, what directions he was given and why he set that entire process of introducing George Papadopoulos to Russia in motion in March of 2016 — which is really the flashpoint, the start point of this whole Russia collusion narrative,” Solomon revealed Thursday on Fox News…

https://www.bizpacreview.com/2019/08/02/durham-investigators-acquire-audio-deposition-of-joseph-misfud-man-at-center-of-russia-witch-hunt-780795

 

@GeorgePapa19: Mifsud on tape. It’s over. Italy flipped and will be America’s top ally in Europe moving forward

 

Wray Welcomes Peter Strzok Back to FBI [Sounds like he cut a deal and is now snitching.]

“He (Strzok) is getting in with a visitor’s badge and is involved in meetings,” one FBI insider said. “Maybe they are all trying to get their story straight before things go public.”… FBI sources said when Strzok is not at the Hoover building he has been holding meetings with high-level DOJ brass at a location across the street from the Bureau’s Pennsylvania Avenue base.  But why? Wray is not saying.

https://truepundit.com/wray-welcomes-peter-strzok-back-to-fbi/

 

Parody site @TheBabylonBee: Study Shows Leading Cause of Gun Violence Is Those You Disagree with Politically

 

@RealSaavedra: In 2016, Republicans in the Senate voted unanimously to ban people from buying guns who were on the FBI’s terrorist watch list… Every. Single. Democrat. Voted. Against. It.

https://www.texastribune.org/2016/06/20/after-orlando-massacre-cornyn-gun-measure-fails-s/

 

Chicago Police Step up Patrols after 25 People Shot in Less Than 4 Hours [Sunday morning]

https://www.nbcchicago.com/news/local/chicago-police-step-up-patrols-after-25-people-shot-in-less-than-4-hours-519114711.html

 

Chicago hospital stops accepting patients after trauma center is overwhelmed with shooting victims

https://www.cnn.com/2019/08/04/us/chicago-mount-sinai-hospital/index.html

 

@MarkSimoneNY: We have to do something about gun violence in America.  1462 shootings so far this year in Chicago.  So, obviously Chicago is the place to start.  They already have more gun laws than anyplace, so that’s not the simple solution

 

Chicago police unveil ‘Gun Offender Dashboard’ as department ratchets up criticism of courts

Johnson has increasingly been blaming Chicago’s continuing violence on gun offenders who too quickly bond out following arrests only to return to their violent ways — a view disputed by Timothy Evans, Cook County’s chief judge… the little more than 1,100 people arrested by Chicago police on felony gun charges between May 1 and July 28, about two-thirds — 719 — had been released on bail, while 34 percent — 380 — remained in custody. Charges against six people had been dismissed…

https://www.chicagotribune.com/news/criminal-justice/ct-chicago-police-gun-offenders-dashboard-20190805-mdaxmjjtiza25nj2mi5assqj2e-story.html

 

@nbcchicago: [Gov.] Pritzker ‘thankful’ no Illinois mass shootings, ignoring 2 [And Chicago!]

He made no mention of the Feb. 15 shooting at an Aurora warehouse that killed five or the one at Northern Illinois University in DeKalb on Feb. 14, 2008 that left five dead…  http://nbcchi.com/YrBHg5l

 

MS-13 gang created beachhead at Valley high school, but authorities insisted on secrecy

Only after a federal grand jury indicted 22 adults on racketeering and murder charges earlier this month did officials with the Los Angeles Unified School District acknowledge that students from Panorama High had also been arrested…  https://www.latimes.com/california/story/2019-07-26/stabbing-at-school-preceded-murder-of-panorama-high-student

 

@JackPosobiec: Widespread Antifa self-deletion of tweets and accounts going on right now after @HeavySan revealed the Dayton shooter was tied to Antifa / DSA

 

@realDonaldTrump: The Media has a big responsibility to life and safety in our Country. Fake News has contributed greatly to the anger and rage that has built up over many years. News coverage has got to start being fair, balanced and unbiased, or these terrible problems will only get worse!

 

Trump condemns ‘white supremacy,’ calls for mental health and gun reforms…

“We must do a better job at identifying and acting on early warning signs,” Trump said. “I am directing the Department of Justice to work in partnership with local, state, and federal agencies and social media companies to develop tools to identify mass shooters before they strike.”  He added: “We must stop the glorification of violence in our society. This includes the gruesome and grisly video games that are now commonplace…It is too easy for troubled youth to surround themselves with a culture that celebrates violence. We must stop or substantially reduce this and it has to begin immediately.”…

https://www.foxnews.com/politics/trump-shootings-remarks

@Barnes_Law:Every state has laws on its books that allow institutionalization of the dangerous mentally ill. Why isn’t it used more often (such as high risk shooter profiles with history of criminal threats)? Real reason: badly under-resourced mental health state run facilities.

 

DJT: “In one voice, our nation must condemn racism, bigotry and white supremacy. These sinister ideologies must be defeated. Hate has no place in America.”

 

Let’s be honest, Trump’s call for unity after the media and Dems, for 3 days, viciously blamed him for the El Paso shooter is not only antithetical to Trump’s nature, it’s a calculated political act.  History tells us that after national tragedies, most voters want leaders to act apolitically and advocate unity.

 

Breitbart’s John Hayward @Doc_0: Democrats are going to polarize a huge number of people in Trump’s direction by blaming one shooter on him while shrieking that the other’s politics are completely irrelevant… People will remember for a long time that these totalitarian Democrats instantly tried to exploit a horrible crime for political gain…

 

Biden calls Trump a “significant contributor’’ to the rise of hate [Despite saying twice that he wanted to beat up DJT.]  https://www.bloomberg.com/news/articles/2019-08-05/biden-calls-trump-significant-contributor-to-rise-of-hate

 

Menacing invectives against Trump create a dangerous climate

Former vice president and current presidential candidate Joe Biden has bragged on two occasions that he would like to beat up President Donald Trump… Had former Vice President Dick Cheney dared to say something similar of President Barack Obama, what would the media reaction have been?…

    Sen. Corey Booker (D-N.J.), another presidential candidate…: “Trump is a guy who you understand he hurts you, and my testosterone sometimes makes me want to feel like punching him…”…

    Actor Robert De Niro… Kathy Griffin… Celebrities such as Johnny Depp, Snoop Dogg, George Lopez, Moby, Rosie O’Donnell, Mickey Rourke and Larry Wilmore seem to relish the media attention as they discuss or demonstrate what they consider to be creative ways to kill the president…

http://daily.gazette.com/Olive/ODN/TheGazette/shared/ShowArticle.aspx?doc=THEGAZETTE%2F2019%2F08%2F04&entity=Ar03500&sk=FBF5164E&mode=text

Mental health counselor @JeffreyGuterman: In a reply to this tweet by Trump that I have since deleted, I wrote “You should be executed.” I misunderstood his tweet to mean those who commit hate crimes should face death penalty. I now understand he meant BOTH hate crimes and mass murders.  What I initially meant is it logically follows Trump should be executed because he has committed hate crimes…

 

LA Times: Op-Ed: We have studied every mass shooting since 1966. Here’s what we’ve learned about the shooters

    First, the vast majority of mass shooters in our study experienced early childhood trauma and exposure to violence at a young age. The nature of their exposure included parental suicide, physical or sexual abuse, neglect, domestic violence, and/or severe bullying. The trauma was often a precursor to mental health concerns, including depression, anxiety, thought disorders or suicidality.

   Second, practically every mass shooter we studied had reached an identifiable crisis point in the weeks or months leading up to the shooting

  Third, most of the shooters studied the actions of other shooters & sought validation for their motives…

  Fourth, the shooters all had the means to carry out their plans…

  Another step is to try to make it more difficult for potential perpetrators to find validation for their planned actions. Media campaigns like nonotoriety are helping starve perpetrators of the oxygen of publicity, and technology companies are increasingly being held accountable for facilitating mass violence… Don’t read or share killers’ manifestos and other hate screeds posted on the internet…

 

FBI warns of possible copycat attacks by domestic extremists in wake El Paso, Dayton

https://abcnews.go.com/Politics/fbi-warns-copycat-attacks-domestic-extremists-wake-el/story?id=64780174

 

ABC: ‘Politicize my death’: Twitter users plead for change in wake of mass shootings

https://abcnews.go.com/US/politicize-death-twitter-users-plead-change-response-wake/story

@Barnes_Law: This encourages publicity seeking shooters.

 

CNN: The US suicide rate is up 33% since 1999, research says

https://www.cnn.com/2019/06/20/health/suicide-rates-nchs-study/index.html

 

Tucker Carlson last night: “Suicide rates for young Americans are the highest ever measured. Millions are dependent on drugs–legal and illegal… They lack friends or parents or religious organizations to give purpose and moral coherence to their lives…

 

Van Susteren @greta:Why so little information about the killer in Vegas (58 gun downed in Oct 2017?) It almost seems like that investigation got dropped by law enforcement and the media…am I wrong? Are you satisfied you got enough information about him or does it seem to have been dropped?

 

@MortonAKlein7: There have been 24 massacres under President Obama, 8 under President George W. Bush, 4 under President Trump, 3 under President Reagan. Did anyone ever blame Obama for the two dozen massacres?

 

Just when you think the media could be baser, they report something that makes them look worse.

 

Michael Avenatti says he’s NOT ruling out 2020 presidential run despite facing more than 40 federal charges…

https://www.dailymail.co.uk/news/article-7323679/Avenatti-says-hes-NOT-ruling-2020-presidential-run-despite-facing-40-federal-charges.html

France Slowly Sinking into Chaos

President Macron never says he is sorry for those who have lost an eye or a hand… from extreme police brutality. Instead, he asked the French parliament to pass a law that almost completely abolishes the right to protest and the presumption of innocence, and that allows the arrest of anyone, anywhere, even without cause. The law was passed.

   In June, the French parliament passed another law, severely punishing anyone who says or writes something that might contain “hate speech”. The law is so vague that an American legal scholar, Jonathan Turley, felt compelled to react. “France”, he wrote, “has now become one of the biggest international threats to freedom of speech”…  https://www.gatestoneinstitute.org/14643/france-sinking-chaos

Well that is all for today

I will see you WEDNESDAY night.

 

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2 comments

  1. cassano1492 · · Reply

    Harvey can you tell me when the September delivery date for silver is or how I could find that date

    Sent from my iPhone

    >

    Like

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