AUGUST 9/YOUR TYPICAL FRIDAY RAID BY THE BANKERS: GOLD DOWN $2.00 TO $1498.00//SILVER UP 2 CENTS TO $16.97//TRUMP MAY CANCEL CHINESE TRIP IN SEPT AND THAT CAUSED THE YUAN TO FALTER//ALSO THE CHINESE FIX WAS WEAKER//ITALIAN BOND YIELDS SKYROCKET AS PRESIDENT OF ITALY WILL NO DOUBT CALL FOR NEW ELECTIONS AND SALVINI WILL BE THE PROBABLE WINNER..HE IS A EUROSCEPTIC//IT SEEMS THAT TURKEY WAS TEMPORARILY BAILED OUT BY CHINA WITH A ONE BILLION DOLLAR USA LOAN TO HELP SHORE UP ITS FINANCES//

GOLD:$1498.80.  DOWN $2.00(COMEX TO COMEX CLOSING

 

 

 

 

 

 

 

 

 

Silver$16.97 UP 2 CENTS  (COMEX TO COMEX CLOSING)/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closing access prices:

 

 

Gold : $16.97

 

silver:  $16.97

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 7/18

EXCHANGE: COMEX
CONTRACT: AUGUST 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,497.700000000 USD
INTENT DATE: 08/08/2019 DELIVERY DATE: 08/12/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
118 H MACQUARIE FUT 3
661 C JP MORGAN 7
686 C INTL FCSTONE 16
737 C ADVANTAGE 2
880 H CITIGROUP 6
905 C ADM 2
____________________________________________________________________________________________

TOTAL: 18 18
MONTH TO DATE: 4,424

NUMBER OF NOTICES FILED TODAY FOR  AUGUST CONTRACT: 18 NOTICE(S) FOR 1800 OZ (0.0559 tonnes

TOTAL NUMBER OF NOTICES FILED SO FAR:  4424 NOTICES FOR 44240000 OZ  (13.7604 TONNES)

 

 

 

SILVER

 

FOR AUGUST

 

 

147 NOTICE(S) FILED TODAY FOR 735,000  OZ/

 

total number of notices filed so far this month: 1605 for   8,025,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 11735 DOWN 266 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 11878 down 113

 

 

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A FAIR SIZED 1063 CONTRACTS FROM 244,169 DOWN TO 243,775… DESPITE THE STRONG 23 CENT LOSS IN SILVER PRICING AT THE COMEX.

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

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

FOR AUGUST, 0 FOR SEPT 2019, AND DEC: 37 AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  2056 CONTRACTS. WITH THE TRANSFER OF 2056 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 4245 EFP CONTRACTS TRANSLATES INTO 10.28 MILLION OZ  ACCOMPANYING:

1.THE 23 CENT LOSS IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

8.570   MILLION OZ INITIAL STANDING IN AUGUST.

WE HAD ATTEMPTED COVERING OF SHORTS AT THE SILVER COMEX YESTERDAY WITH MINOR SUCCESS..AND WE HAD 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 AUGUST:

12,385 CONTRACTS (FOR 7 TRADING DAYS TOTAL 12,385 CONTRACTS) OR 61.93 MILLION OZ: (AVERAGE PER DAY: 1769 CONTRACTS OR 8.846 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF AUGUST:  61.93 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 8.841% 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:          1374.44   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 FAIR SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1063, WITH THE 23 CENT LOSS IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  STRONG SIZED EFP ISSUANCE OF 2056 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 GOOD  SIZED: 993 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 2056 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 1056  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 23 CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $16.95 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. 1.215 BILLION OZ TO BE EXACT or 174% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT AUGUST MONTH/ THEY FILED AT THE COMEX: 147 NOTICE(S) FOR 735,000 OZ OF SILVER

IN SILVER,PRIOR TO TODAY, WE  SET THE NEW COMEX RECORD OF OPEN INTEREST AT 244,196 CONTRACTS ON AUG 22.2018 AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $14.78.  

AND NOW WE ARE WITHIN A WHISKER OF ANOTHER ALL TIME RECORD OPEN INTEREST AT THE COMEX OF 243,795  BUT THIS TIME  THE PRICE OF SILVER YESTERDAY WAS $16.95 

 

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 8.570 MILLION OZ
  2. CLOSE TO THE RECORD OPEN INTEREST IN SILVER 244,169 CONTRACTS (OR 1.228 BILLION OZ/, THE PREVIOUS RECORD WAS SET IN 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 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 A FAIR SIZED 2,457 CONTRACTS, TO 602,423 DESPITE THE  $4.90 PRICING LOSS 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

 

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A HUMONGOUS SIZED 13,196 CONTRACTS:

AUGUST 2019: 0 CONTRACTS, DEC>  13196 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 602,423,,.  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 15,653 CONTRACTS: 2,457 CONTRACTS INCREASED AT THE COMEX  AND 13,196 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 15,653 CONTRACTS OR 1,565,300 OZ OR 48.69 TONNES.  YESTERDAY WE HAD A STRONG LOSS OF $4.20 IN GOLD TRADING….AND WITH THAT STRONG LOSS IN  PRICE, WE  HAD A GIGANTIC GAIN IN GOLD TONNAGE OF 48.69  TONNES!!!!!! THE BANKERS WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER AND MANY GOLD LONGS JUST PILED ON WITHOUT ANY REGARD TO THAT LOSS IN PRICE.

 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF AUGUST : 88,699 CONTRACTS OR 8,869,900 oz OR 275.89 TONNES (7 TRADING DAY AND THUS AVERAGING: 12,671 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 7 TRADING DAY IN  TONNES: 275.89 TONNES

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

THUS EFP TRANSFERS REPRESENTS 275.89/3550 x 100% TONNES =7.77% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     3787,13  TONNES

JANUARY 2019 TOTAL EFP ISSUANCE;   531.20 TONNES

FEB 2019 TOTAL EFP ISSUANCE:             344.36 TONNES

MARCH 2019 TOTAL EFP ISSUANCE:       497.16 TONNES

APRIL 2019 TOTAL ISSUANCE:                 456.10 TONNES

MAY 2019 TOTAL ISSUANCE:                    449.10 TONNES

JUNE 2019 TOTAL ISSUANCE:                   642.22 TONNES

JULY 2019: TOTAL ISSUANCE:                    591.56 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 2457 DESPITE THE  PRICING LOSS THAT GOLD UNDERTOOK YESTERDAY($4.20)) //.WE ALSO HAD  A HUGE SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 13,196 CONTRACTS AS THESE HAVE ALREADY BEEN NEGOTIATED AND CONFIRMED.   THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX.  I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS HARDLY ANY GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES. IF YOU TAKE INTO ACCOUNT THE 13,196 EFP CONTRACTS ISSUED, WE  HAD AN ATMOSPHERIC  AND CRIMINALLY SIZED GAIN OF 15,653 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

13,196 CONTRACTS MOVE TO LONDON AND 2,457 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 48.69 TONNES). ..AND THIS HUGE INCREASE OF  DEMAND OCCURRED DESPITE THE LOSS IN PRICE OF $4.20 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX.  THE COMEX IS NOW UNDER FULL ASSAULT FOR OUR TWO PHYSICAL METALS, GOLD AND SILVER

 

 

 

 

 

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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

WITH GOLD DOWN $2.00 TODAY//(COMEX-TO COMEX)

NO CHANGE IN GOLD INVENTORY AT THE GLD

 

 

INVENTORY RESTS AT 839.85 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 2 CENTS TODAY:

A HUGE CHANGE IN INVENTORY AT THE SLV:

A DEPOSIT OF 2.246 MILLION OZ INTO THE SLV

 

/INVENTORY RESTS AT 365.557 MILLION OZ.

 

 

 

 

 

end

 

OUTLINE OF TOPICS TONIGHT

 

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

1. Today, we had the open interest in SILVER FELL BY A FAIR SIZED 1063 CONTRACTS from 244169 DOWN TO 243,106 AND WITHIN A WHISKER OF A  NEW COMEX RECORD.  THE LAST RECORDS WERE SET  IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD TO THAT 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  2 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.  AS YOU CAN SEE, WE HAVE RECORDED HIGH OPEN INTERESTS IN SILVER  ACCOMPANIED BY A CONTINUAL LOWER PRICE WHEN THAT RECORD WAS SET EXCEPT TODAY AS WE HAVE A RISING PRICE..OUR SHORT DERIVATIVE BANKERS ARE NOW IN DEEP TROUBLE AS THEY ARE TERRIBLY OFFSIDE AND NEED ASSISTANCE FROM THE GOVERNMENT (FED) TO PROVIDE THE NECESSARY COLLATERAL TO CARRY THAT SHORT POSITION…..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. 2019; DEC 37 CONTRACTS  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2056 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE OI LOSS AT THE COMEX OF 1056  CONTRACTS TO THE 2056 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A GOOD SIZED GAIN OF 993 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 4.965 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 8.570 MILLION OZ//

 

 

RESULT: A SMALL SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE STRONG 23 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 2056 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

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

 

 

(report Harvey)

.

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 19.80 POINTS OR 0.71%  //Hang Sang CLOSED DOWN 181.47 POINTS OR 0.69%   /The Nikkei closed UP 91.47 POINTS OR 0.44%//Australia’s all ordinaires CLOSED UP .32%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0595 /Oil UP TO 53.27 dollars per barrel for WTI and 58.20 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0505 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0858 TRADE TALKS STALL//YUAN LEVELS PAST THE DANGEROUS  7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

3A//NORTH KOREA/ SOUTH KOREA

 

3b) REPORT ON JAPAN

3C  CHINA

i)Last night:  USA futures extend their losses after a weaker yuan fix

(zerohedge)

ii)This is why China has huge problems ahead.  Its PPI indicates huge deflation has now become the norm in China as commodity prices tumble which in turn causes factory prices to fall.  However food prices are on the rise caused by the Pig Ebola.  Fruit prices are also on the rise.  Thus China has a twofold problem:

1 deflation at the factory level
2 price inflation
(zerohedge)

iii)Heng Feng bank has now been nationalized. They have over 200 billion dollars in assets(zerohedge)

4/EUROPEAN AFFAIRS

i)UK

For the first time since 2012, the UK contracted as a no deal Brexit looms.  The pound collapses on this news

(zerohedge)

ii)The truth behind the EU negotiations with the UK on its Brexit.

(Mish Shedlock)

iii) The CEO of  HSBC was fired a few days ago.  These guys  are massively short the precious metals.

Do we have another Deutsche bank on our hands:
(Forbes)
iv)Switzerland
Swiss Central Bank will be in a battle to cheapen the franc in order to compete
(James Rickards)

v)ITALY

What happens next in the crisis surrounding Italy.  In all likelihood we will have elections in mid October and a right wing government headed by Salvini will probably hea the next government.
(Buckely/Nomura)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

TURKEY/CHINA

We now know what saved Turkey as they had run out of dollar reserves.  China has lent Turkey one billion dollars. Looks like the quid pro quo is Turkey facing Russia and China and abandoning the USA

(zerohedge)

6.Global Issues

 

7. OIL ISSUES

China continues to defy USA sanctions by purchasing Iranian oil.  If China stops buying oil from Iran the price could plummet by 30 dollar per barrel

(zerohedge)

8 EMERGING MARKET ISSUES

Malaysia
Malaysia criminally charges 17 Goldman Executives in the 1 MDB Scandal .  Malaysia just wants $7.5 billion in reparations
(zerohedge)

9. PHYSICAL MARKETS

i)Any new GATA supporter will receive a Thomas Callendra subscription for one year free.

(Gata/Thom Callandra)

ii)Alasdair \macleod is in my camp one this one: expect deeply negative interest rates to the entire globe

(Alasdair Macleod)

iii)Chris Powell comments on whether central banks have lost control or are they in a “controlled retreat:

Find out if you agree with Chris Powell

(GATA)

iv)Craig Roberts asks: Is the Federal Reserve losing control of the gold price?

an excellent commentary

( Craig Roberts/GATA)

v)Will a 1985 Plaza Accord work  (cheapening the dollar vs everybody else) work?  I think not

(Watt/MarketWatch/GATA)

vi)Peter Schiff on gold’s strength lately

(Peter Schiff)

vii)Who would have thought that this might happen…  hi grade Nickel may have severe supply problems in the next few years

(Lesage/Oil Price.com)

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

MARKET TRADING//USA

a)Market trading/LATE MORNING/USA

This triggered a sell off in the Dow, Nasdaq and the yuan

(zerohedge)

 

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

a)USA producer prices drops for the first time in 30 months

(zerohedge)

iii) Important USA Economic Stories

a)My goodness! It seems that Russiagate is certainly hurt these bozos

(zerohedge)

b)Another great commentary from Mish Shedlock as he states that we must expect a huge debt deflation as the central bankers are losing control

(Mish Shedlock/Mishtalk)

iv) Swamp commentaries)

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 A STRONG SIZED 2453 CONTRACTS TO A LEVEL OF 602,423 DESPITE THE LOSS  OF $4.20 IN GOLD PRICING WITH RESPECT TO YESTERDAY’S // COMEX TRADING)

WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF AUGUST..  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 13,196 EFP CONTRACTS WERE ISSUED:

 FOR AUGUST; 0 CONTRACTS: DEC: 13,196   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  13196 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: 15,653 TOTAL CONTRACTS IN THAT 13,196 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A GOOD SIZED 2453 COMEX CONTRACTS.  THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD IN AN ATTEMPT TO CAUSE COMEX LONGS TO FLEE BUT THIS WAS TO NO AVAIL…THE COMEX IS UNDER ASSAULT FOR ANY REMAINING PHYSICAL GOLD SUPPLY WHETHER IT IS FOUND OVER HERE OR OVER IN LONDON. 

 

NET GAIN ON THE TWO EXCHANGES ::  15,653 CONTRACTS OR 1,565300 OZ OR 48.69 TONNES.

 

We are now in the  active contract month of AUGUST and here the open interest stands at 2418 CONTRACTS as we LOST 122 contracts.  We had 6 notices filed yesterday so we LOST 116 contracts or 11,600 oz of gold that will NOT stand for delivery AS THERE APPEARS TO BE A LACK OF METAL ON THIS SIDE OF THE POND. THESE GUYS HAVE FAILED TO FIND ANY GOLD OVER HERE AS THEY MORPHED INTO LONDON BASED FORWARDS AND WILL TRY THEIR LACK OVER THERE.

The next non active month is September and here the OI FELL by 139 contracts DOWN TO 3794.  The next active delivery month is October and here the OI ROSE by 1227 contracts UP to 45,654.

 

 

TODAY’S NOTICES FILED:

WE HAD 18 NOTICES FILED TODAY AT THE COMEX FOR  1800 OZ. (0.0559 TONNES)

 

 

 

 

 

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And now for the wild silver comex results.

Total COMEX silver OI FELL BY A FAIR SIZED 1063CONTRACTS FROM 244,169 DOWN TO 243,106 (AND WITHIN A WHISKER OF A  NEW RECORD OI. THE PREVIOUS RECORD WAS SET AUGUST 22/ 244,196, CONTRACTS) AND TODAY’S SMALL  OI COMEX LOSS OCCURRED WITH A 23 CENT LOSS IN PRICING.//YESTERDAY.

 

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF AUGUST.  HERE WE HAVE 256 OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 180 CONTRACTS.  WE HAD 326 NOTICES FILED YESTERDAY SO WE GAINED A FULL 146 CONTRACTS OR AN ADDITIONAL HUGE 730,000 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 7424 CONTRACTS DOWN TO 142,440 CONTRACTS. OCTOBER RECEIVED ANOTHER 65 CONTRACTS TO STAND AT 150.  NEXT ACTIVE DELIVERY MONTH IS DECEMBER AND HERE THE OI RISES BY 5497 CONTRACTS UP TO 67,235.

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 147 notice(s) filed for 735,000 OZ for the AUGUST, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY: 334,954  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  425,763  contracts

 

 

 

 

 

INITIAL standings for  AUGUST/GOLD

AUGUST 9/2019

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
18 notice(s)
 1800 OZ
(0.0559 TONNES)
No of oz to be served (notices)
2400 contracts
(240000 oz)
7.465 TONNES
Total monthly oz gold served (contracts) so far this month
4424 notices
442400 OZ
13.7604 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:  nothing   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 18 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 7 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 (4424) x 100 oz , to which we add the difference between the open interest for the front month of  AUGUST. (2418 contract) minus the number of notices served upon today (18 x 100 oz per contract) equals 682,400 OZ OR 21.23 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 (4424 x 100 oz)  + (2418)OI for the front month minus the number of notices served upon today (18 x 100 oz )which equals 682,400 oz standing OR 21.23 TONNES in this  active delivery month of AUGUST.

We LOST 116  contracts or an additional 11,600 oz will NOT stand as these guys  morphed into London based forwards as well as accepting a fiat bonus. The comex,yesterday, was under assault by speculators looking for metal.  In order to satisfy their hunger for physical they were forced to try their luck in London as there was none to be found on this side of the pond.

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 21.23  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;   7,782,115.992 oz 242.05 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 9 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 600,025.750 oz
CNT

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
608,538.660 oz
loomis
No of oz served today (contracts)
147
CONTRACT(S)
(735,000 OZ)
No of oz to be served (notices)
109 contracts
 545,000 oz)
Total monthly oz silver served (contracts)  1605 contracts

8,025,000 oz)

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

**

 

we had 0 inventory movement at the dealer side of things

 

 

total dealer deposits: nil  oz

total dealer withdrawals: nil oz

we had  1 deposits into the customer account

into JPMorgan:  nil  oz

ii)into Loomis:  608,538.660

 

 

 

*** 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:  608,538.660  oz

 

we had 1 withdrawals out of the customer account:

 

 

i) Out of CNT: 600,025.750  oz

 

 

 

 

 

 

 

total 600,025.750  oz

 

we had 0 adjustment :

 

total dealer silver:  92.564 million

total dealer + customer silver:  311.184 million oz

The total number of notices filed today for the AUGUST 2019. contract month is represented by 147 contract(s) FOR 735,000 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 1605 x 5,000 oz = 8,025,000 oz to which we add the difference between the open interest for the front month of AUGUST. (256) and the number of notices served upon today 147 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the AUGUST/2019 contract month: 1605 (notices served so far) x 5000 oz + OI for front month of AUGUST (256)- number of notices served upon today (147)x 5000 oz equals 8,570,000 oz of silver standing for the AUGUST contract month.  (DATA CORRECTED FROM YESTERDAY)

WE GAINED A STRONG 146 CONTRACTS  AS THE DEALERS BYPASSED THOSE STANDING TRYING TO GRAB WHATEVER SILVER THEY CAN. WE THUS HAVE AN ADDITIONAL 146 CONTRACTS OR 730,000 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.BOTH COMEX GOLD AND SILVER ARE UNDER ATTACK FOR PHYSICAL METAL.

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 147 notice(s) filed for 735,000 OZ for the AUGUST, 2019 COMEX contract for silver

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  111,868 CONTRACTS (we had considerable spreading activity..accumulation

 

CONFIRMED VOLUME FOR YESTERDAY: 151,839 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 151,839 CONTRACTS EQUATES to 759 million  OZ 108% OF ANNUAL GLOBAL PRODUCTION OF SILVER..makes sense!!

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

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

 

end

 

 

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NPV for Sprott 

1. Sprott silver fund (PSLV): NAV RISES TO -.1.06% ((AUGUST 8/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.30% to NAV (AUGUST 5/2019 )
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 14.85 TRADING 14.35/DISCOUNT 3.34

END

 

 

And now the Gold inventory at the GLD/

AUGUST 9/WITH GOLD DOWN $2.00//NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY REMAINS AT 839.85 TONNES OZ/

AUGUST 8: WITH GOLD DOWN $4.20: TWO TRANSACTIONS:  A)A MONSTROUS PAPER DEPOSIT OF 8.50 TONNES WAS ADDED TO THE GLD/INVENTORY RESTS AT 845.42 TONNES  b)  A HUGE WITHDRAWAL OF 5.59 TONNES FROM THE GLD//INVENTORY RESTS AT 839.85 TONNES…ABSOLUTE FRAUD!

August 7/ WITH GOLD UP $31.00//A GOOD PAPER DEPOSIT OF 1.86 TONNES OF GOLD INTO THE GLD INVENTORY//INVENTORY RESTS AT 836.92 TONNES

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

 

 

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AUGUST 9/2019/ Inventory rests tonight at 839.85 tonnes

 

 

*IN LAST 639 TRADING DAYS: 95.55 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 539 TRADING DAYS: A NET 70,99 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

 

 

 

 

end

 

Now the SLV Inventory/

 

AUGUST 9/2019//WITH SILVER UP 2 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV; A DEPOSIT OF 2.245 MILLION OZ INTO THE SLV INVENTORY/INVENTORY ADVANCES 365.557 MILLION OZ

AUGUST 8/WITH SILVER DOWN 23 CENTS: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A DEPOSIT: 1.409 MILLION OZ INTO INVENTORY///INVENTORY RESTS AT 363.311 MILLION OZ//

AUGUST 7/WITH SILVER UP 74 CENTS: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 361.907 MILLION OZ/

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 9/2019:

 

Inventory 365.557 MILLION OZ

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 2.11/ and libor 6 month duration 2.05

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

G0LD LENDING RATE: – .06

 

XXXXXXXX

12 Month MM GOFO
+ 1.93%

LIBOR FOR 12 MONTH DURATION: 1.99

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.06

end

 

 

end

 

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

Gold Holds Above $1,500 As Central Banks Lose Control and China Continues to Buy Gold Bullion

NEWS & COMMENTARY

Gold and silver are 4% and 4.7% higher respectively for the week so far

1 Week Relative Performance (Finviz.com)

Gold ends lower but holds firmly above $1,500; Silver loses grip on $17

Gold dips, taking a breather after surpassing key $1,500 level

China Increases Gold Reserves & Diversifies From The Dollar

European stocks seen lower on trade worries and political turmoil in Italy

Carl Icahn is not sure rate cuts can fix problems facing the economy

Bonds, Gold Bid As Italian Political Crisis Re-Emerges: Salvini Demands Fresh Elections

Paul Craig Roberts: Is the Federal Reserve losing control of the gold price?

Is Silver Demand Overwhelming Supply? with Harvey Organ

Gold Blasts Through $1500: Message? Central Banks Out of Control, Not Inflation

Listen and Watch Jim Rogers Interview Here

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

08-Aug-19 1497.40 1495.75, 1230.26 1234.14 & 1335.08 1335.70
07-Aug-19 1487.65 1506.05, 1225.82 1239.33 & 1330.11 1341.44
06-Aug-19 1461.85 1465.25, 1199.59 1201.21 & 1304.85 1311.11
05-Aug-19 1457.45 1465.25, 1199.92 1203.85 & 1307.92 1310.23
02-Aug-19 1436.05 1441.75, 1184.17 1187.28 & 1294.02 1298.44
01-Aug-19 1406.40 1406.80, 1161.12 1161.74 & 1273.35 1273.29
31-Jul-19 1430.55 1427.55, 1175.48 1167.45 & 1283.20 1281.37
30-Jul-19 1428.45 1425.90, 1173.47 1171.95 & 1281.75 1279.60
29-Jul-19 1418.95 1419.05, 1150.91 1157.94 & 1275.78 1275.30
26-Jul-19 1418.25 1420.40, 1140.27 1144.70 & 1273.02 1275.95

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ii) Important gold commentaries courtesy of GATA/Chris Powell

Any new GATA supporter will receive a Thomas Callendra subscription for one year free.

 

(Gata/Thom Callandra)

 

Help GATA by subscribing to The Calandra Report

 Section: 

1:44p ET Thursday, August 8, 2019

Dear Friend of GATA and Gold:

Now that the monetary metals seem to be breaking out of their central bank chains, companies that produce gold, silver, and other strategic resources are starting to draw investment again.

So GATA supporters may want to consider a generous offer extended to us this week by our old friend, financial letter writer Thom Calandra of The Calandra Report. For a limited time GATA supporters who accept the offer will not only receive a year’s subscription to The Calandra Report but will be helping GATA financially, since Thom will donate half the subscription price to GATA.

A note from Thom explains below.

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

* * *

Hello Alpha-GATAs. I have supported GATA since the early 2000s. Over the years GATA Chairman Bill Murphy, GATA Secretary/Treasurer Chris Powell, and I have shared ideas, panel appearances, and even a drink or three.

I’d like you to join The Calandra Report community. It’s been going since 2011, and since 1998 for MarketWatch.com, which I co-founded.

Here’s a small biography:

https://thomcalandra.com/about-thom-calandra/

Here’s a subscription offer exclusively for GATA supporters, like the offer we made last year.

You get the twice-weekly private reports for one year for $169, and GATA will receive fully half of that amount: $85.

For your review Chris has posted here —

http://gata.org/files/CalandraReport-08-04-2019.pdf

— the latest edition of TCR, which covers the weeklong resources symposium just concluded in Vancouver.

To accept this offer and help GATA, please go here:

https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=588…

And please feel free to e-mail me with testimonials, ideas, and names: thom@thomcalandra.com

Thank you from northern California!

— Thom Calandra

end

Alasdair \macleod is in my camp one this one: expect deeply negative interest rates to the entire globe

(Alasdair Macleod)

Alasdair Macleod: Deeply negative nominal rates are on their way

 Section: 

2:05p ET Thursday, August 8, 2019

Dear Friend of GATA and Gold:

GoldMoney research director Alasdair Macleod expects central banks to push interest rates to deeply negative levels, prompting more asset bubbles, what von Mises called a “crack-up boom,” impoverishment of retirees and those without assets, and a flight from the increasingly crazy financial system.

Macleod’s analysis is headlined “Deeply Negative Nominal Rates Are on Their Way” and it’s posted at GoldMoney here:

https://www.goldmoney.com/research/goldmoney-insights/deeply-negative-no…

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

end

Chris Powell comments on whether central banks have lost control or are they in a “controlled retreat:

Find out if you agree with Chris Powell

(GATA)

No hope for metals, or a ‘controlled retreat’ by central banks?

 Section: 

6:38p ET Thursday, August 8, 2019

Dear Friend of GATA and Gold:

In a letter he titles “Too Early to Throw in the Towel on Central Bank Gold-Market Rigging,” our friend J.U. writes

“Great piece you wrote about precious metals breaking out to the upside (http://gata.org/node/19326) but I suspect it is way too early to think that central bank market riggers have thrown in the towel on suppressing them.

“What I see, despite all the excitement of gold and silver bugs, is the setting of a bull trap much like what happened to silver at the hands of [White House Chief of Staff] Bill Daley when silver was allowed to run up to nearly $50 and then was smashed down to take all the wind out of the sails of the silver bulls, and silver has remained firmly under the control of the market riggers since, trapped in a narrow trading range between $14 and $17 for years now.

… 

“Once they get as many longs in the bull trap as they can, they will smash silver again as they always do. As long as prices are set on the New York Commodities Exchange, there is no hope.

“I have watched this charade for too many years to believe it is coming to an end, especially when the Federal Reserve is about to embark on another round of ‘quantitative easing’ and the last thing it wants is to have gold and silver going nuts while they are trying to keep in the air all the balls they are juggling.”

* * *

Your secretary/treasurer agrees that central banks won’t lose interest in controlling the gold price, and the scenario J.U. describes is plausible.

But now there is so much clamor from governments and central banks for currency devaluation — and, it seems, so much grasping by certain central banks for gold — serious downward pressure on the monetary metals may be very hard to maintain.

During the rise of the metals from 2000-2011 central bank policy seemed to be one of controlled retreat as they made cash settlements of their longstanding gold leases and disguised them as gold sales.

Central banks may revert to controlled retreat now that demand for the metals is increasing as a hedge against the insanity of the world financial system and the central banks themselves are splitting into opposing factions.

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

* * *

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/1

end

Craig Roberts asks: Is the Federal Reserve losing control of the gold price?

an excellent commentary

(courtesy Craig Roberts/GATA)

Paul Craig Roberts: Is the Federal Reserve losing control of the gold price?

 Section: 

By Paul Craig Roberts
Institute for Political Economy, Inlet Beach, Florida
Thursday, August 8, 2019

https://www.paulcraigroberts.org/2019/08/07/is-the-federal-reserve-losin…

After years of being kept in the doldrums by orchestrated short selling described on this website by Roberts and Kranzler, gold has lately moved up sharply reaching $1,510 this morning. The gold price has continued to rise despite the continuing practice of dumping large volumes of naked contracts in the futures market. The gold price is driven down but quickly recovers and moves on up. I haven’t an explanation at this time for the new force that is more powerful than the short-selling that has been used to control the price of gold.

… 

Various central banks have been converting their dollar reserves into gold, which reduces the demand for dollars and increases the demand for gold. Existing stocks of gold available to fill orders are being drawn down, and new mining output is not keeping pace with the rise in demand. Perhaps this is the explanation for the rise in the price of gold.

During the many years of Quantitative Easing the exchange value of the dollar was protected by the Japanese, British, and EU central banks also printing money to insure that their currencies did not rise in value relative to the dollar. The Federal Reserve needs to protect the dollar’s exchange value so that it continues in its role as the world’s reserve currency in which international transactions are conducted. If the dollar loses this role, the United States will lose the ability to pay its bills by printing dollars. A dollar declining in value relative to other countries would cause flight from the dollar to the rising currencies. Catastrophe quickly occurs from increasing the supply of a currency that central banks are unwilling to hold.

One problem remained. The dollar was depreciating relative to gold. Rigging the currency market was necessary but not sufficient to stabilize the dollar’s value. The gold market also had to be rigged. To stop the dollar’s depreciation, naked short selling has been used to artificially increase the supply of paper gold in order to suppress the price. Unlike equities, gold shorts don’t have to be covered. This turns the price-setting gold futures market into a paper market where contracts are settled primarily in cash and not by taking delivery of gold. Therefore, participants can increase the supply of the paper gold traded in the futures market by printing new contracts. When large numbers of contracts are suddenly dumped in the market, the sudden increase in paper gold supply drives down the price. This has worked until now.

If flight from the dollar is beginning, it will make it difficult for the Federal Reserve to accommodate the growing US budget deficit and continue its policy of lowering interest rates. With central banks moving their reserves from dollars (U.S. Treasury bonds and bills) to gold, the demand for U.S. government debt is not keeping up with supply. The supply will be increasing due to the $1.5 trillion U.S. budget deficit. The Federal Reserve will have to take up the gap between the amount of new debt that has to be issued and the amount that can be sold by purchasing the difference. In other words, the Fed will print more money with which to purchase the unsold portion of the new debt.

The creation of more dollars when the dollar is experiencing pressure puts more downward pressure on the dollar. To protect the dollar, that is, to make it again attractive to investors and central banks, the Federal Reserve would have to raise interest rates substantially. If the U.S. economy is in recession or moving toward recession, the cost of rising interest rates would be high in terms of unemployment.

With a rising price of gold, who would want to hold debt denominated in a rapidly depreciating currency when interest rates are low, zero, or negative?

The Federal Reserve might have no awareness of the pending crisis that it has set up for itself. On the other hand, the Federal Reserve is responsive to the elite who want to rid themselves of Trump. Collapsing the economy on Trump’s head is one way to prevent his reelection.

—–

Paul Craig Roberts is an economist, author, and former assistant U.S. Treasury secretary

end

Will a 1985 Plaza Accord work  (cheapening the dollar vs everybody else) work?  I think not

(Watt/MarketWatch/GATA)

William Watts: Why a 1985 deal to weaken the dollar offers a map to ending the trade war

 Section: 

By William Watts
MarketWatch.com, New York
Thursday, August 8, 2019

The fear that a deepening trade war could wreck the global economy has analysts and economists once again pining for the mid-1980s, when the U.S. and the world’s other major economic powers struck a deal, known as the Plaza Accord, to weaken the dollar.

An end to the present turmoil surrounding U.S.-China trade tensions “may require no less than a global grand bargain,” wrote Thierry Wizman, economist at Macquarie Group, in a Wednesday note. The best such grand bargain would see President Trump “ditching the protectionist mindset” versus China, he said. In return, China, the European Union, and Japan would agree to a depreciation of the U.S. dollar, which on a trade-weighted basis stands near a three-year high. …

… For the remainder of the commentary:

https://www.marketwatch.com/story/a-1985-global-deal-to-weaken-the-dolla…

end

iii) Other physical stories:

Peter Schiff on gold’s strength lately

(Peter Schiff)

Peter Schiff: We Have Global Currency Weakness; They’re All Losing Value Against Gold

Via SchiffGold.com,

Several currencies have been strong against the dollar over the last couple of days, but as Peter Schiff said in his podcast, the biggest gainer wasn’t a currency at all. It was real money – gold.

Source: Bloomberg

Gold hit six-year highs on Monday and set records in a number of currencies. It continued to move upward the rest of the week, pushing above $1,500.

Any talk you hear in the media about the strong dollar simply by measuring it against some currencies… You don’t have a strong dollar when the price of gold is rising the way it is. We have a weak dollar. It’s just that we also have a weak yuan and we have a weak euro and we have a weak yen, because all these currencies are falling against gold.”

Peter noted the all-time record highs for gold in countries like Australia and Canada – countries that mine a lot of gold.

It’s only a question of time now, and I don’t think it’s going to be that much time, before gold starts making an all-time record high in terms of US dollars as well, because we are now in a period of global currency weakness. All currencies are losing value when priced in gold.”

Source: Bloomberg

Peter said that currencies sink at different levels and currently the dollar is sinking more slowly than a lot of other currencies.

But it’s about to pick up the pace. The dollar is going to be sinking faster as the economic reality sets in.”

There has been a lot of concern about the drop in the yuan against the dollar. Peter said the real problem isn’t that the Chinese yuan is dropping. The problem is going to come when the Chinese currency begins to rise. And Peter said it’s going to rise a lot.

And he said the recent fall in the yuan wasn’t because the Chinese are manipulating their currency. It fell do to market forces. Most investors believe the trade war is going to hurt the Chinese economy and they are selling off the yuan. Trump is upset that the Chinese government did not intervene — that they actually refrained from manipulating the yuan higher than the market wanted to set it.

Peter said he does think the Chinese have manipulated their currency in the past, but said they aren’t really doing that anymore.

Which means the currency is going to appreciate when market forces start to move it in that direction.”

Peter went on to reiterate that the Fed is going to keep cutting rates, noting that Goldman Sachs has projected 75 basis points in cuts by the end of the year.

They’re looking for 75 basis points. We’re going to get 200 basis points. And the reason it’s 200 is because that’s how many we got. Because once they cut 200, now we’re at zero. And the fact of the matter is 200 basis points is not a lot of cutting when you’ve got a bubble this big, and when you’re going to try to reflate an even bigger bubble, you’re going to have to have a lot more ammunition than that, which is why the Fed is going to be going back to quantitative easing. But even that is not going to be enough because it’s going to produce an overdose.”

Also in this podcast, Peter analyzes the bear market rally in the US stock markets and makes the case that the US economy was stronger before we had a bunch of economic advisors – highlighting some of the absurdity coming from Larry Kudlow.

END

Who would have thought that this might happen…  hi grade Nickel may have severe supply problems in the next few years

(Lesage/Oil Price.com)

Tightening Nickel Supply Threatens Electric Vehicle Boom

Authored by Jon LeSage via Oilprice.com,

For Tesla and its chief competitors in the race for global domination of electric vehicle sales, it ain’t all about lithium ion.

There are other valuable metals needed to make the battery packs do what’s asked of them, with nickel being essential. Tesla and its battery producer partners, and other automakers and their suppliers, are worried about the longer-term supply of nickel according to a new study by BloombergNEF.

 

The study predicts that EV makers will be driving demand for nickel about 16 times to 1.8 million tons in the next years.

Class-one nickel, a high-purity material used in batteries, is expected to see demand greatly outstrip supply in the next few years. That will be fueled by meeting the large Chinese EV market, and other global markets where demand is expected to grow.

That need for class-one nickel will outstrip supply within five years, according to the study.

One problem has been a lack of real investment in new mines for materials including nickel, Tesla’s global supply manager of battery metals, Sarah Maryssael, said at a Washington meeting in May. That could drive up prices as battery demand increases greatly.

Tesla CEO Elon Musk is concerned about having enough economically viable — and available — metal to continue meeting its growing electric car demand. That will take off even more as the company taps into China’s booming markets.

“They are getting ready to have the new factory in China, and are at full capacity in North America,’’ Peter Bradford, chief executive officer of nickel producer Independence Group NL, said.

“They recognize the biggest risk from a strategic supply point of view is nickel.’’

Bradford last week met with one of Tesla’s battery metals supply chain team. His company, Perth-based Independence, last year increased nickel output from its Nova mine in Western Australia. Independence will be spending as much as A$75 million ($51 million) on exploration in an effort to extend the asset’s life and find new deposits.

Bradford’s industry had been focused mainly on supplying the metal to stainless steel. By 2030, the BloombergNEF study expects that batteries will account for more than half of demand for the valuable class-one nickel.

Metal suppliers have been scrambling to find the right metal to fill that demand. Australian firm BHP, the biggest maker, is betting on bright-turquoise colored nickel sulphate. That will be taking place at its nickel refinery south of Perth, with plans to potentially carry out the industry’s largest expansion.

The mining company had been seeking a buyer for its Nickel West facility, but reversed course recently after reviewing growth forecasts in lithium-ion batteries and a scarcity of high-quality nickel supply.

The challenge will be there to mass produce more affordable EVs and meet consumer demand in China and other key markets; battery costs have been the biggest stumbling block to reaching that sales volume. Increasing government mandates to bring in more EVs is part of the forecast, with incentives being offered and alliances being forged to increase public charging stations.

Tesla is seeing car buyers impatiently waiting for delivery of their Model 3 electric cars. The company is betting that its upcoming Model Y will be in strong demand, and is already preparing to have production capacity in place more in line with the popular Model 3.

The Model 3 looks like a smaller version of the Model S, and the Model Y will be available to car shoppers interested in the crossover SUV functionally of the Model X, but also want to have a more affordable and smaller alternative. Musk is also promising that the Model Y will have 300 miles of range, which would address a critical concern for buyers ready to leave their gasoline-powered cars behind for the first time ever.

new Wood Mackenzie study sees the metals problem much broader, with lithium, cobalt, and nickel supplies to be worst hit over the next few years.

Supply for the three metals is fine for now, said Gavin Montgomery, research director at Wood Mackenzie. Short-term market prices have fallen, and that will deter producers from increasing supply to meet future demand, he said.

But long-term that will change. Demand is expected to grow so rapidly with car makers taking on their ambitious goals to mass produce EVs, that metal suppliers won’t be able to keep up, Montgomery said.

Automakers and their battery partners need to start planning for it now.

“Getting the quantity of nickel that (electric vehicles) will need by the mid-2020s will be a challenge … with lead times often up to 10 years, investment needs to happen now,” Montgomery said.

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0595/ NOW PAST  7:1//EXTREMELY  DANGEROUS TO THE GLOBAL ECONOMY

//OFFSHORE YUAN:  7.0858   /shanghai bourse CLOSED DOWN 19.80 POINTS OR 0.71%

HANG SANG CLOSED DOWN 181.47 POINTS OR 0.69%

 

2. Nikkei closed UP 91.47 POINTS OR 0.44%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index UP TO 97.54/Euro RISES TO 1.1203

3b Japan 10 year bond yield: FALLS TO. –.22!!!!/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 105.74/ 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:: 53.27 and Brent: 58.20

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.59%/Italian 10 yr bond yield UP to 1.79% /SPAIN 10 YR BOND YIELD UP TO 0.25%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.38: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield RISES TO : 2.13

3k Gold at $1501.50 silver at: 17.00   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 38/100 in roubles/dollar) 65.43

3m oil into the 53 dollar handle for WTI and 58 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 105.74 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 .9733 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0994 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 0.59%

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 1.70% early this morning. Thirty year rate at 2.22%

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

6.  TURKISH LIRA:  UP  TO 5.5064..

Global Markets Tumble On Trade War Fears, Italian Bonds Plunge As Crisis Returns

Global stocks and US equity futures were set to end the week in a sea of red as trade war tensions resurfaced after the US was said to hold off on Huawei licenses in retaliation for China’s halting of US crop imports…

… while fears of a government crisis in Italy sent the country’s bond plunging, after Deputy PM Salvini called for a snap election, fanning political uncertainty and prompting a haven bid in bunds. Italy’s BTPs tumbled led by the belly, with the 5-year yield rising 30bps to 1.14% and the 10-year yield up 25bps to 1.78%, widening the BTP-bund spread by 29bps to 238bps, amid a violent selloff as 10-year futures volumes surge to 250% of the 10-day average.

The fresh risk-off episode left gold on course for its best week in three years, Japan’s yen near an eight-month high and bonds surging. Meanwhile, US stock futures were down as much as 0.5%, while MSCI’s broadest index of world shareswas headed for its second straight week of declines, after one of its worst days in years on Monday.

With one day left until the weekend after a historically turbulent week, dominated by a symbolic drop in China’s currency was not finished yet: a Bloomberg report that Washington was delaying a decision about allowing some trade between U.S. companies and Huawei again spooked Asia. Markets in the region slumped with the MSCI Asia ex-Japan index ending down 2.3% for the week after data showed China’s first decline in producer prices in three years, compounding the Huawei disappointment, with South Korea advancing amid oversold signs for Kospi stocks and Hong Kong sliding. Japan’s Topix, meanwhile, rose 0.4%, boosted by technology shares, as Japan’s economy grew more than expected in the second quarter. The Shanghai Composite Index retreated 0.7%, capping a second week of losses, with Kweichow Moutai and China Merchants Bank among the biggest drags, after Beijing reported the first negative PPI print in 3 years even as food inflation soared, pushing CPI to the highest in 16 months, and leaving the PBOC in a bind, unable to cut rates to stimulate the economy.

As Bloomberg reported after the close on Thursday, Washington held off on a decision about licenses for U.S. companies to restart business with Huawei, while Beijing halted purchases of U.S. farming goods. India’s Sensex rose 0.8%, buoyed by HDFC Bank and Housing Development Finance, amid optimism the government may drop an increased surcharge on foreign investors registered as trusts.

The European session was uglier, and was led lower by a 2.4% slump in Italian stocks after Matteo Salvini, the leader of one of the country’s ruling parties, the League, pulled his support for the governing coalition on Thursday. The Stoxx Europe 600 index’s decline was led by automaker shares.

While Italian snap elections have been likely for months, markets were jarred when Salvini, who’s publicly insisted the government would last its full five years before, pushed for a new poll as deja vu moments of bidless Italian bonds filled traders with dread. The result was a plunge in Italian government debt, which pushed yields on 10-year Italian bonds up 26 basis points to 1.8%, the biggest daily increase in over a year.

“Those who waste time hurt the country,” the League said in a statement as it presented a no-confidence motion to the Senate in Rome.

Meanwhile, London’s FTSE and the pound were under strain, too, with Gilt yields sliding and cable tumbling to 1.2080, the lowest since the start of 2017, after the UK reported its economy unexpectedly shrank in the second quarter, the first contraction in seven years.That followed reports on Thursday that the new UK Prime Minister, Boris Johnson, was planning for an election after an Oct. 31 Brexit. Those reports had shoved sterling to a two-year low against the euro.

“It has been a very volatile week,” said Elwin de Groot, Rabobank’s head of macro strategy. “Until recently, the markets’ view was that this trade war will be resolved, but clearly now the thinking is that maybe this is not the case and it could be accelerating from here,” and Italy and Brexit worries are now adding to that, he said.

As a result, treasuries ticked higher alongside gold, which extended above $1,500 per ounce. While most of Europe’s debt inched higher, Italy’s bonds plunged with benchmark 10-year yields heading for the biggest increase since 2018 (see more above).

In FX, a turbulent week for the yuan ended on a calmer note, reflecting the central bank’s efforts to sooth nerves after the currency dropped below 7 per dollar. Volume in the onshore rate has fallen every day since Monday, with the PBOC on Friday setting its daily reference rate for the onshore yuan at a level that was in line with expectations. A gauge of expected volatility in the offshore yuan fell for a fourth day. Recent fixings reinforced the message that the PBOC seeks stability, said Ken Cheung, senior FX analyst at Mizuho Bank. “Recent onshore yuan fixings with counter cyclical factor in place to slow down depreciation flagged PBOC’s policy to guide a gradual depreciation rather than one-off sharp yuan depreciation,” he said. Still, the currency continued to weaken against a basket of trading partners’ currencies, hitting a new low after dropping to its lowest level since at least 2015 on Thursday.

Emerging-market equities and currencies headed for third week of declines as escalating trade tensions and concerns of a global slowdown shattered a recent calm, even as central banks pushed through rate cuts to limit the damage. The MSCI stocks gauge for developing nations extended its August slump to 5.1% after Thursday’s rebound proved short-lived. The currency index erased its 2019 gains, with the South African rand leading this week’s retreat. Peru joined peers from India to Brazil in cutting interest rates amid a deteriorating growth outlook as the intensifying conflict between China and the U.S. takes its toll on trade and investment flows. China’

China’s pledge to keep the yuan steady gave markets a brief respite Thursday, but the bearish outlook returned to sour sentiment on Friday. “We are in a slight risk-off mode today,” said Guillaume Tresca, senior emerging-market strategist at Credit Agricole in Paris. “The decline of growth prospects, the yuan’s weakening and the trade war concerns are behind the emerging-market currencies’ depreciation.”

Elsewhere in FX, the dollar was weighed down by renewed complaints by Trump about the U.S. currency’s strength; the greenback weakened against all of its G-10 peers except the pound, while the Bloomberg Dollar Spot Index was set for its first weekly decline in four. Meanwhile, sterling was set for its fourth weekly decline against the dollar after poor growth data added to Brexit-related political uncertainty. The yen gained for a third day and Treasuries advanced as investors sought shelter in haven assets with no signs of a let-up in the U.S.-China trade war.

The news about Huawei triggered the rise in the yen,” said Junichi Ishikawa, senior foreign exchange strategist at IG Securities. “This is a reminder that the U.S.-China trade dispute remains a risk, and this risk is not receding.”

Other safe havens also gained. Gold rose back above $1,500 on Friday, its highest in more than six years, en route to its best week since April 2016. Oil prices held most of the previous day’s gains as well, on expectations of more production cuts by OPEC. Brent crude hovered at $57.32 per barrel. U.S. West Texas Intermediate crude fell 0.1% to $52.50. Worries about the global economy meant Brent was down over 6% for the week and WTI more than 5%.

The trade spat is driving the market crazy,” said Jigar Trivedi, commodities analyst at Mumbai-based Anand Rathi Shares & Stock Brokers. “$1,500 (for gold) is now the new normal unless trade relations take a turn in a right direction.”

On today’s calendar expected data include PPIs. Cambrex, Hydro One, TransAlta and Tribune Media are among companies reporting earnings.

Market Snapshot

  • S&P 500 futures down 0.5% to 2,926.50
  • STOXX Europe 600 down 0.5% to 372.82
  • MXAP up 0.3% to 152.33
  • MXAPJ unchanged at 491.50
  • Nikkei up 0.4% to 20,684.82
  • Topix up 0.4% to 1,503.84
  • Hang Seng Index down 0.7% to 25,939.30
  • Shanghai Composite down 0.7% to 2,774.75
  • Sensex up 1% to 37,700.04
  • Australia S&P/ASX 200 up 0.3% to 6,584.43
  • Kospi up 0.9% to 1,937.75
  • German 10Y yield fell 2.6 bps to -0.586%
  • Euro up 0.1% to $1.1191
  • Italian 10Y yield rose 11.3 bps to 1.182%
  • Spanish 10Y yield unchanged at 0.224%
  • Brent futures up 0.7% to $57.79/bbl
  • Gold spot up 0.1% to $1,502.89
  • U.S. Dollar Index down 0.1% to 97.54

Top Overnight News from Bloomberg

  • U.S. was said to decide to hold off on a decision about licenses for American firms to restart business with Huawei Technologies
  • The U.K. economy shrank in the second quarter, delivering a blow to newly installed Prime Minister Boris Johnson. GDP fell 0.2% following a solid 0.5% advance in the previous three months while economists had expected output to be unchanged
  • German exports registered their steepest annual decline in three years, highlighting the plight of a manufacturing sector suffering from global trade conflicts.
  • Bayer AG is proposing to pay as much as $8 billion to settle more than 18,000 U.S. lawsuits alleging its Roundup herbicide causes cancer, according to people familiar with the negotiations.
  • Italy’s PM Giuseppe Conte signaled he won’t leave office without a fight as his deputy, Matteo Salvini, took steps toward bringing the government down and forcing snap elections. The nation’s bonds plunged.
  • UBS Group AG’s investment bank co-heads are working on their first shake- up of the business – plans which could entail plans could entail hundreds of job cuts
  • U.K.’s Johnson says ‘Bags of Time’ to renegotiate Brexit with EU
  • Oil Recovers From Seven-Month Low as Saudis Signal Export Curbs
  • U.S. Warns of Shipping Interference in Strait of Hormuz
  • RBA Governor Philip Lowe said he’s prepared to reduce Australia’s record-low interest rates further, though he signaled that the economy could in fact be through the worst of its slowdown
  • Too much too soon on rates better than too little too late, Reserve Bank of New Zealand Governor Adrian Orr said to business audience

Asian equity markets traded mostly higher as the region got a mild tailwind from the strong performance on Wall St where stocks extended their rebound, helped by the recent better than expected Chinese trade data and continued PBoC restraint on the CNY. As such, ASX 200 (+0.3%) and Nikkei 225 (+0.5%) were higher with notable strength seen in tech stocks after similar gains in the sector stateside and with investors in Tokyo cheering better than expected GDP data, although weakness in real estate and profit taking in gold miners has limited the upside for Australia. Elsewhere, Hang Seng (-0.7%) and Shanghai Comp. (-0.7%) were choppy with initial support seen after the PBoC once again set a firmer than expected reference rate but with gains later pared after participants digested mixed inflation data in which CPI topped estimates but PPI contracted, while reports the US held off on the decision regarding Huawei licences after China stopped agricultural purchases, added to the cautiousness. Finally, 10yr JGBs were higher as they track upside in T-notes and as prices broke through prior at 154.50/55, with the BoJ also present in the market under its bond buying program in which it upped purchases in 1-3yr JGBs but lowered purchases of 3-5yr and 10-25yr maturities.

Top Asian News

  • Huawei Suppliers Fall After U.S. Is Said to Hold Off on Licenses
  • Philippines’ Diokno Sees Further Rate, Reserve Ratio Cuts
  • Thailand Says Policy Panel Won’t Interfere With Central Bank
  • China Mobile Jumps the Most in Two Years on Dividend Pledge

Major European indices have diverted from their Asia-Pac counterparts largely positive performance and opened and remain in negative territory [Euro Stoxx 50 -1.0%]. The FTSE MIB (-2.2%) is the notable underperformer this morning as the Italian political turmoil has escalated following comments from League’s Salvini that there is no longer a majority of support for the government and elections are necessary (a summary of the situation is available on the headline feed). The MIB’s underperformance is most significantly driven by banking names with the likes of UniCredit (-6.0%), UBI Banca (-6.0%) and Banco BPM (-8.3%) experiencing significant losses; as such, the FTSE MIB Banking Index is lagging (-4.4%) with the largest weighted bank in the Stoxx 600 Bank index (-1.5%), Intesa Sanpaolo (-4.5%), with a 3.8% weighting likely the most significant laggard out of Italy in terms of index points. Elsewhere, the DAX (-0.6%) did get a short-lived boost from a Bayer (+3.2%) update, where reported indicate the Co. are to propose up to a USD 8bln roundup settlement; which generated a significant spike in Co. shares from around EUR 63.50 to EUR 70.00 at best. DAX aside, this morning’s notable movers to the upside largely reside in the FTSE 100 (-0.2%), with WPP (+7.3%) topping the index higher post earnings where the Co. proposed an interim dividend of GBP 0.0266 and H1 net revenue came in above the prior. Sticking with the UK, but outside of the 100 are Hikma Pharmaceuticals (+6.8%) as the Co’s H1 revenue also came in above prior and additionally the Co. increased some FY guidance components.

Top European News

  • Italy Early Election Might Be Set for Oct. 23: Repubblica
  • Ukraine Eyes New IMF Deal Worth Up To $10B: Deputy C.Bank Chief
  • Faith in Woodford Plummets as Fund Trades at Record Discount

In FX, GBP/EUR – The Pound has come under renewed pressure on the back of an unexpected, but not exactly shocking negative UK GDP print for Q2, while monthly IP and output data also missed expectations. However, Cable has dipped below the 1.2080 multi-year base and Eur/Gbp has just crossed yesterday’s 2 year high at 0.9265. given the single currency’s separate struggles in wake of more Italian political instability. Indeed, Eur/Usd remains capped around 1.1200 after the collapse of Rome’s 2-party coalition, and ahead of a confidence vote before fresh elections potentially in October or November, while circa 1 bn option expiries at the big figure and from 1.1175-60 may also keep the headline pair in check into Friday’s NY cut.

  • JPY/CHF/NZD/AUD/CAD – All mildly firmer against the Greenback, albeit well within this week’s ranges and for the Yen that means largely anchored on 106.00 as Fib resistance just above (106.06) continues to be respected on a closing basis, while decent expiry interest between 105.90-106.00 could stall pull-backs towards 105.50. Meanwhile, the Franc has rebounded through 0.9750 and 1.0900 vs the Euro on the aforementioned renewed political uncertainty in Italy and the Antipodean Dollars are still clawing back post-RBNZ declines vs their US counterpart even though RBA comments and the SOMP overnight have underscored clear downside economic risks that will likely require further monetary, or perhaps even unconventional easing. Hence, Aud/Usd looks vulnerable above 0.6800 and Nzd/Usd just shy of 0.6500 as the Aussie/Kiwi cross pivots 1.0500. Turning to the Loonie, looming Canadian jobs and to a lesser extent perhaps housing data should provide some independent impetus as crude prices essentially tread water approaching the end of a volatile week and the DXY stays close to 97.5000. Usd/Cad currently trading towards the base of 1.3245-15 parameters.
  • NOK/SEK – The Scandi Crowns are flat-lining against the Euro after some relatively big swings so far this week, with Eur/Nok and Eur/Sek meandering between 9.9955-9665 and 10.7475-7070 respectively and neither really reacting to data as Norwegian inflation metrics and Swedish household consumption updates were both somewhat mixed.
  • EM – Broad losses vs the Buck as the overall risk tone sours again and specific bearish factors persist, while the Lira has also been subject to fresh reports about more Government interference at the CBRT (at least 9 senior personnel ‘given’ new roles, according to the FT). Elsewhere, the Yuan continues to weaken after another seemingly off-radar incrementally higher PBoC Usd/Cny mid-point fix (at 7.0136).

In commodities, WTI and Brent futures are firmer in early EU trade, albeit the benchmarks have far to go to retrace this week’s losses. The ramp up of US-China trade tensions saw the global benchmark slump to a current weekly low of 55.90/bbl (vs. 61.40/bbl weekly open), whilst WTI found a weekly base at 50.55/bbl (vs. 55.29/bbl weekly open). The former currently eyes 53/bbl (200 WMA 53.05/bbl) to the upside whilst the latter climbs closer towards 58/bbl (200 WMA at 57.76/bbl) . The oil demand outlook has been deteriorating with IEA the latest agency to cut its global demand growth forecast, by 100k BPD to 1.1mln BPD and 2020 by 50k BPD to 1.3mln BPD. The release is relatively in-fitting with EIA’s STEO earlier in the week, where it cut 2019 world oil demand growth forecast by 70k BPD to 1.0mln BPD, but raised its 2020 forecast by 30k BPD to 1.43mln BPD. Prices may also see support from the Saudi’s intention for intervention to stem the decline in the market, although official measures have not been announced. Elsewhere, a stellar week for gold as the yellow metal was bolstered as investors flocked to the safe-haven amid the aforementioned ramp up in protectionism. Spot gold has a current weekly (and 6-year) high of 1510/oz (vs. 1440/oz at the weekly open). BAML Flow Show notes that precious metals have reaped inflows of USD 2.3bln, its fourth largest weekly inflows to date. Meanwhile, copper prices are flat around the USD 2.6/lb level amid the cautious risk tone ahead of US’ market entrance. Sticking with base metals, iron ore prices continue to decline with the metal down 18% thus far this month amid a bleaker short-term demand outlook with steel mills potentially reducing operations on low profitability, whilst exports from Brazil and Australia continue to rise. The Reserve Bank of Australia, at its SoMP, also noted that iron ore prices are “expected to decline further” as supply gradually comes back online and China demand moderates. Finally, nickel prices continue to be supported by the speculation that Indonesia could reel in an export ban on nickel ore in a regulatory move. Indonesia initially planned to ban exporting nickel ore by 2022 in an attempt to build up its manufacturing base by using its raw resources. The country said that no decision has been made on the mineral ore export ban timing but bringing the deadline forward from 2022 will disrupt USD 4bln in ore exports.

US Event Calendar

  • 8:30am: PPI Final Demand MoM, est. 0.2%, prior 0.1%
  • 8:30am: PPI Ex Food and Energy MoM, est. 0.11%, prior 0.3%
  • 8:30am: PPI Ex Food, Energy, Trade MoM, est. 0.2%, prior 0.0%
  • 8:30am: PPI Final Demand YoY, est. 1.7%, prior 1.7%
  • 8:30am: PPI Ex Food and Energy YoY, est. 2.3%, prior 2.3%
  • 8:30am: PPI Ex Food, Energy, Trade YoY, prior 2.1%

DB’s Jim Reid, off to vacation, concludes the overnight wrap

Right. At the end of today I’m going to put down my quill and ink pot and have a 2-week break. You’ll find me in the French Alps. One of my favourite bits of being in the Alps in summer is walking Bronte up and down the mountain across rolling Alpine meadows. At this time of the year it’s swarming with grasshoppers, who are slightly annoying to the ankles of a human, however they give Bronte the right hump. They jump all over her and flap in and out of her ears and face. She must burn three times the calories of a normal walk just by fighting them off. To be fair she gulps at them and I suspect she catches and eats about 50 on the average hourly walk. I’m hoping to get back on my bike for the first time since the accident a week ago but my derrière is still sore from the fall and my confidence might be a bit low for those steep mountain descents. So we’ll see. See you on the other side and you’ll be left in the very capable hands of Craig and Quinn.

The moves in the last couple of days means markets are going into my two-week break in a bit of a happier state with last night’s closing gains of +1.89% and +2.24% for the S&P 500 and NASDAQ, respectively, limiting the damage done since Trump’s tweet to ‘only’ -2.07% and -3.07% from intra-day lows of -5.95% and -7.61% on Monday. Yesterday’s rally was the best in two months, since Fed Chair Powell gave a dovish speech at the Chicago Fed conference on June 4. The recent rally hasn’t been accompanied by big swings in Fed expectations though with the market still pricing around 64bps of additional cuts this year. It remains to be seen if monetary policy can act as a shock absorber for markets moving forward. The reality is that the outcome is probably more binary than that. Monetary policy is unlikely to help much in a full blown trade escalation.

The good news is that the main talking point in markets yesterday was away from trade and instead reserved for a Reuters story which broke in the afternoon suggesting that Germany was mulling a “fiscal U-turn” by issuing new debt to finance a climate protection programme according to a senior government official. A bit of scepticism surrounded the news not least because this isn’t the first such story to emerge about a change of fiscal policy in Germany and also because there may be an element of political posturing behind the headlines. That being said, there is still a very significant and interesting side to the story if true. Our economists showed last week in their report ( here ) that Germany is the member state with room for manoeuvre within current fiscal rules and limits. DB’s Chief Economist Mark Wall made the point that the story (if true) signalled a political reset of domestic rules – not because of fears of where the economic cycle is going – but structurally because of climate change, which in itself is an increasingly viable policy route to fiscal spending, providing cover to those naturally opposed to higher spending. So a potentially very interesting development to follow.

The immediate response in bond markets was a sudden move higher in yields (a near 5bps rise in 5 minutes), however, that quickly faded as the market debated the story and Germany’s finance ministry played it down, saying there has not been a decision to give up the balanced budget. By the end of play, 10y Bunds finished just +2.1bps higher at -0.560% and close to where they were before the story hit. The big mover though were BTPs, which sold off +11.5bps and as much as +16.1bps at one point as news filtered through that PM Conte was meeting President Mattarella and thus raising fears over new elections. After European markets had closed, Deputy PM Salvini did confirm that his Northern League party wants new elections and will aim to dissolve the government. His party have nearly 40% support in recent opinion polls, nearly double that of his coalition partner. It’s not immediately clear if Mattarella will agree to new elections, or if he will ask other parties to try to form a new government. In theory, the Five Star Movement could join with the centre-left PD in a new coalition. If elections are called, they likely won’t be held for at least another 60 days after parliament is actually dissolved.

Back to fixed income and Treasuries ended up rallying -1.9bps (a further -1.7bps this morning) to 1.716%, paring a mid-session selloff of +5.4bps, with the reversal coming after a mixed 30-year auction. While demand wasn’t great in absolute terms, with the issuance tailing 1.3bps, that was better than Wednesday’s 10-year auction and much improved from last month’s 30-year issuance, which tailed 2.6bps. The improvement helped spark a rally in the long-end treasuries, taking the yield curve (2s10s) -2.9bps tighter to around 10bps.

As for other markets, the STOXX 600 (+1.66%) was buoyed by the fiscal story while HY spreads in the US and Europe were also -7.4bps and -3.2bps tighter respectively. Oil bounced back +3.43% after its recent selloff, while Gold again flirted with the $1500 level without firmly breaking out. It’s nudged back above this morning. EM assets performed well, with equities up +1.23% and Latin American currencies leading FX gains, especially the Brazilian real (+1.27%) and the Mexican peso (+0.92%).

Overnight, we have fresh trade headlines with Bloomberg reporting that the White House is holding off on a decision about licenses for US companies to restart business with Huawei after China said that it was halting purchases of US farming goods. Huawei suppliers Micron Technology (-1.34% ), Western Digital (-1.0% ), Qualcomm (-1.36% ), Xilinx (-0.82%) and NeoPhotonics (-6.31%) all fell in after-hours trading after news of the delay in license approvals.

The above news has poured a little cold water on the risk-on sentiment from yesterday as Asian equity markets are trading mixed with the Shanghai Comp (-0.37%) and Hang Seng (-0.18%) down while the Nikkei (+0.60%) and Kospi (+1.13%) are up. Meanwhile, all G10 currencies are trading higher this morning (c. +0.1% – +0.2% range) and the Chinese onshore yuan is trading at 7.0512 (-0.09%) after another slightly stronger fixing than expected. Elsewhere, futures on the S&P 500 are down -0.43%. We should also note that we’ve had the latest inflation data out of China where June CPI and PPI came in at +2.8% yoy (vs. +2.7% yoy expected) and -0.3% yoy (vs. -0.1% expected) respectively. The yoy decline in PPI is the first since September 2016. Meanwhile, the preliminary Q2 GDP data in Japan surprised on the upside at an annualized +1.8% qoq (vs +0.5% qoq expected and +2.8% qoq last quarter). Business spending (at +1.5% qoq vs. +0.8% qoq expected) and consumer spending (+0.6% qoq vs. +0.7% qoq expected) helped, with the latter getting lift from a 10-day public holiday and shoppers making purchases ahead of a planned sales-tax hike in October. This suggests that we should be a bit wary of reading too much into this surprise. Government spending also supported the expansion, contributing a surprisingly strong 0.7 pp to the annualized GDP growth figure.

In other news, the BoJ made changes to its bond purchase amounts in three different maturity zones at its regular operation today, which seems like an attempt to limit yield curve flattening. They cut the purchases of 3-5yr bonds (at JPY 360b vs. 380bn in previous auction) and increased buying of 1-3yr debt (at JPY 400bn vs. 380bn). Purchases of 10-25yr bonds was also reduced to JPY 160bn from JPY 180bn. Despite the reduction in purchases at the longer end, the yield on 10yr JGBs are down -1.5bps this morning to -0.217%. Elsewhere, Bloomberg reported that Turkey’s central bank removed at least nine high-ranking officials, including chief economist Hakan Kara, yesterday. Other officials removed from duty include the bank’s head of research, banking department chief, risk management chief and the institutional transformation manager.

On yesterday’s data front, the only noteworthy releases were in the US, where jobless claims fell by 8k to 209k. That’s right around their recent lows. Wholesale inventories were flat, compared to expectations for a 0.2% mom increase. That means that inventories, which had dragged around -0.9pp on the first estimate of US second quarter GDP growth, will likely provide an even bigger drag in the second estimate.

To the day ahead now, which this morning includes June trade data in Germany and June industrial production in France and the UK. We’ll also get the preliminary Q2 and June GDP readings in the UK along with June manufacturing production and trade data. In the afternoon the big release in the US is the July PPI report.

 

3A/ASIAN AFFAIRS

I)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 19.80 POINTS OR 0.71%  //Hang Sang CLOSED DOWN 181.47 POINTS OR 0.69%   /The Nikkei closed UP 91.47 POINTS OR 0.44%//Australia’s all ordinaires CLOSED UP .32%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0595 /Oil UP TO 53.27 dollars per barrel for WTI and 58.20 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0505 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0858 TRADE TALKS STALL//YUAN LEVELS PAST THE DANGEROUS  7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

Last night:  USA futures extend their losses after a weaker yuan fix

(zerohedge)

US Equity Futures Extend Losses After Weak Yuan Fix

Equity futures and bond yields traded lower ahead of the yuan fix following reports that Washington will not grant any licenses for deals with Huawei (in response to China not buying US ag products). But a weaker than expected fix by the PBOC sparked further selling pressure in US equity futures.

“China wants to prevent panic now,” said Gao Qi, a strategist at Scotiabank.

“The PBOC will continue to send signals to stabilize the yuan in the near term.”

The PBOC Fix was at 7.0136 (weaker than yesterday and towards the weak end of the range of analyst estimates)…

This weaker fix enables downside for offshore yuan…

 

Source: Bloomberg

“I suspect the authorities will want to gain more comfort over the next few days and weeks that we’re not seeing a huge intensification of capital outflow pressures, before they possibly allow it to go a little weaker,” said Andrew Tilton, chief Asia Pacific economist at Goldman Sachs Group Inc.

“Right now I suspect they want to desensitize the market to this magic number of 7, and make sure that they are not going to have a capital outflow problem.”

This sparked further losses in Nasdaq futures…

 

Of course, by the time US cash markets open, a miraculous ramp would have re-appeared, but now, things are ‘escalating’.

 end
This is why China has huge problems ahead.  Its PPI indicates huge deflation has now become the norm in China as commodity prices tumble which in turn causes factory prices to fall.  However food prices are on the rise caused by the Pig Ebola.  Fruit prices are also on the rise.  Thus China has a twofold problem:
1 deflation at the factory level
2 price inflation
(zerohedge)

China “Faces The Worst Of Both Worlds” As PPI Deflation Arrives While Food Inflation Soars

As if China did not have its hands full with a trade war, a plunging yuan and growing civil unrest in Hong Kong, which is fast becoming the potential epicenter for the next global crisis (and which Steve “The Big Short” Eisman thinks is the next black swan), it now also has deflation to worry about at a time when its ability to boost liquidity in the system is severely limited… or maybe it’s soaring inflation China should be concerned about.

On Friday, China’s National Bureau of Statistics reported that the Producer Price Index (PPI), i.e. factory prices, fell 0.3% in July from a year ago, missing the modest 0.1% decline expected by analysts. This was the first annual decline in China’s PPI in three years – since August 2016 – and just like back then, was largely the result of tumbling commodity prices which in turn depressed both manufacturing and raw material goods prices. And with oil sliding, and iron ore plunging, not to mention the whole trade war thing, it does not seems like a rebound is imminent at all.

Worse, since PPI is closely linked to corporate profitability, the decline suggests that China is badly lagging in the credit impulse arena despite having started off 2019 with a bang and some of the biggest increases in Total Social Financing on record.

So what’s the big deal: China has always been able to boost inflation, all it had to do was turn on the credit spigot and inject a few trillion in new bank and shadow loans into the economy.

Maybe that was the case in the past, but this time it will have a big headache, because even as PPI declined for the first time in three years, consumer prices jumped 2.8%, and coming in hotter than the 2.7% expected, were tied for the highest annual headline inflation since February 2018; before that one would have to go all the way to 2013 to find a hotter CPI print.

A continuation of recent trends, the bulk of the inflation was the result of sharply higher food prices, which surged 9.1% Y/Y as China continues to battle the rapid spread of “pig ebola”  which some expect will eradicate half of China’s entire pig population, leading to even higher prices.

Sure enough, pork prices soared 27% in July from a year ago, the highest in three years, but that wasn’t even the worst of it: the prices of fresh fruit soared by 39%, the highest since 2006!

This combination of lower factory gate prices and soaring consumer prices is, needless to say, the worst possible outcome for Beijing, whose firepower to stimulate the economy using conventional means is severely limited; that this comes at a time when China is caught in an ever escalating trade war with the US certainly doesn’t help.

“Surging pork prices continued to push up consumer price inflation,” said Capital Economics economist Julian Evans-Pritchard, but “weakening demand dragged producer price inflation into negative territory last month.”

This, as Bloomberg’s Kyoungwha Kim writes, is “an ominous sign for equities because it underscores the difficulties the PBOC faces if it wants to boost policy stimulus.”

Between soaring food prices, which limit the PBOC’s ability to “shotgun” inflation higher by injecting a cool trillion in new debt here and there, and the yuan’s plunge past 7 per dollar, this has effectively tied the PBOC’s hands, and its ability to ease aggressively as the economy continues to slow.

“The recent episode where the central bank reported to the police false information circulating about rate cuts underscores the policy dilemma that is brewing”, adds Kim.

However, it was the first drop in the PPI since 2016 that spooked traders, and first sent Chinese bond yields lower, and shortly thereafter, the Shanghai Composite, amid renewed fears that China is facing a hard landing, and who knows – maybe well before the 2020 US presidential election: “That underscores that rates traders are much more worried about the economy’s downturn than rising CPI.”

Indeed, as Evans-Pritchard ever so diplomatically put it, with accelerating consumer prices and the return of factory-gate deflation, “the upshot is that China faces the worse of both worlds.”

Who knows: a few more downward nudges to the Chinese economy, and Trump may win the trade war against Beijing well before the 2020 presidential election.

END

Heng Feng bank has now been nationalized. They have over 200 billion dollars in assets

(zerohedge)

4/EUROPEAN AFFAIRS

UK

For the first time since 2012, the UK contracted as a no deal Brexit looms.  The pound collapses on this news

(zerohedge)

 

UK Economy Shrinks For First Time Since 2012 As ‘No Brexit’ Fears Fester

Though it wasn’t entirely unexpected, the UK economy contracted in Q2 for the first time in seven years as the cloud of uncertainty brought on by the kingdom’s looming exit from the European Union discouraged business investment and prompted some consumers to put off major purchases as well.

For the three months ended June, GDP contracted 0.2% compared to the previous quarter, according to the Office for National Statistics. That’s lower than what experts had expected (they had forecast growth to be flat). The biggest drag was a drop in manufacturing output, which caused the production sector to shrink 1.4%. Construction also weakened while critical service sector yielded no growth at all.

The contraction marks the first time the UK economy has shrank since 2012.

The contraction comes amid rising fears that Britain could crash out of the European Union on Oct. 31 without a deal as negotiations with the EU remain at an impasse. Prime Minister Boris Johnson has committed to leaving on Oct 31. with or without a deal, causing the pound to weaken dramatically.

Courtesy of the BBC

The UK’s Office of Budget Responsibility has warned that a ‘no deal’ Brexit could cause GDP to contract by 2% by the end of 2020.

However the outlook wasn’t all bad: Capital Economics sees GDP rebounding next quarter, and thereby avoiding a recession (defined as two quarters of contraction). And with many of the car factories that shut down around the original Brexit deadline expected to soon be starting up again, that could deliver a boost to growth.

Capital Economics UK@CapEconUK

The 0.2% q/q contraction in in Q2 was weaker than the stagnation most predicted. But almost all the weakness was due to the drag from “net” stock building. And car manufacturers will be working in August when they are normally closed. We expect GDP growth to pick up in Q3.

View image on Twitter

The truth behind the EU negotiations with the UK on its Brexit.

(Mish Shedlock(

end
The CEO of  HSBC was fired a few days ago.  These guys  are massively short the precious metals.
Do we have another Deutsche bank on our hands:
(Forbes)

Why HSBC CEO John Flint Got Fired: Poor Future Fit With His New Boss

Looking back today, the warning signs were all there when John Flint got named CEO 18 months ago. The important new executive onboarding into HSBC was the new chairman, Mark Tucker, not Flint as CEO. Tucker was the outsider named to help the bank accelerate through a point of inflection. Flint was the “safe option” with a 28-year run at the bank across geographies and functions. But Flint missed the point of inflection and refused to move as fast towards the future as his new boss wanted him to move.

It’s almost the same story as John Flannery at GEwho lasted only 14 months as CEO because of his lack of speed and decisiveness. Accelerating through a strategic point of inflection requires a change in strategy, culture, organization and operation all in sync and all at the same time. No one expected Flannery to turn the company around immediately. But they did expect him to lay the ground work for change.

Like Flannery, Flint inherited a mess. His predecessor, Stuart Gulliver had done a good job cleaning up most of the “stinking mess, the legacy of ill-conceived acquisitions and shoddy practice.” Gulliver had cut costs and gotten the business back on a relatively sound footing.

But there was much more to do even then. Everyone knew that. And Flint “said he will lay out his plans in a few months.” At the time, he “had been expected to ride a wave of improving profits as global interest rates started to rise and the world economy looked rosy. But those expectations were dashed as central banks began lowering rates again and geopolitical tensions roiled markets.”

Tucker was new as outside, non-executive Chairman. He didn’t want to change too much too fast then, choosing to converge before evolving the organization. He gave Flint a chance. But recently, as Ronit Ghose, bank analyst at Citi, said, “Mr. Tucker and HSBC’s directors had ‘clearly lost confidence in [Mr Flint’s] ability to navigate the tougher outlook faced by HSBC given the geopolitical and macro uncertainties, structural headwinds for global banks, and digital disruption challenges.’”

end
Switzerland
Swiss Central Bank will be in a battle to cheapen the franc in order to compete
(James Rickards)
 

The Swiss Battle To Cheapen The Franc

Authored by James Rickards via The Daily Reckoning,

One of the crucial insights in currency trading that many investors fail to grasp is that currencies don’t go to zero, and they don’t go through the roof. That’s a generalization, but an important one. Here are the qualifications:

This observation applies to major currencies only — not to currencies of corrupt or incompetent countries like Venezuela or Zimbabwe. Those currencies do go to zero through hyperinflation.

The observation also applies only in the short-to-intermediate run. In the long run, all fiat currencies also go to zero.

Yet over a multiyear horizon, major currencies such as the dollar (USD), euro (EUR), yen (JPY), sterling (GBP) and the Swiss franc (CHF) retain value and do not go to extremes. Instead, they trade in ranges against each other. That’s the key to successful foreign exchange trading. Trading profits are the result of catching the turning points.

Stocks can go to zero when a company goes bankrupt. Enron, WorldCom and a host of dot-com stocks in the early 2000s are all good examples. Bonds can go to zero when a borrower defaults. That happened to Lehman Bros. and Bear Stearns.

But major currencies do not go to zero. They move back and forth against each other like two kids on a seesaw moving up and down and not going anywhere in relation to the seesaw.

The EUR/USD cross-rate is a good example. In the past 20 years, the value of the euro has been as low as $0.80 and as high as $1.60. There have been seven separate instances of moves of 20% or more in EUR/USD in that time period. But EUR/USD never goes to zero or to $100. The exchange rate stays in the range.

Turning points in foreign exchange rates are driven by a combination of central bank interventions, interest rate policies and capital flows. The old theories about “purchasing power parity” and trade deficits are obsolete.

Foreign exchange trading today is all about capital flows driven by policy intervention, sentiment and interest rate differentials.

Another good example is the Swiss franc (CHF). If you look at its exchange rate with the dollar, an exchange rate of 0.80 francs per dollar indicates a strong franc. An exchange rate of 1.05 francs per dollar indicates a weak franc. Right now the exchange rate is 0.97, which leans towards a weak franc relative to the dollar.

CHF has traded in a range of 0.87–1.03 for the past six years. One move that stands out is the spike on Jan. 15, 2015, when CHF surged from 1.02 to 0.86, a nearly 20% move in a matter of hours. CHF then backed off that high of 0.86 and declined to its more recent trading range of 0.91–1.03.

The spike on Jan. 15, 2015, was caused entirely by the decision of the Swiss National Bank (SNB) to remove a cap on the Swiss franc relative to the euro intended to protect Swiss exports.

The Swiss economy is heavily dependent on exports of precision equipment, luxury goods such as Swiss watches and food including cheeses and chocolates. The Swiss economy also depends on tourism, which is akin to a service export sold to foreigners. All of these exports suffer when the Swiss franc is too strong.

The SNB has been enforcing the cap by printing francs and buying euros to put downward pressure on the franc. The problem with this policy is that the world wants francs as a safe haven.

That was especially true during the European sovereign debt crisis of 2010–2015. The SNB balance sheet was becoming top-heavy with European debt purchased with printed francs at a time when the European debt itself was in distress.

Eventually, SNB threw in the towel and allowed market forces to determine the value of CHF. This produced an immediate spike in CHF against the euro and the dollar, which has since moderated into a trading range.

But the franc is currently at the 1.09 level versus the euro, on expectations of monetary easing in both the euro zone and the United States have set in.

So the SNB has been buying euros in an attempt to get out ahead of the curve. It’s trying to cheapen the franc to keep its exports and tourism industry competitive. You see evidence for this in its so-called sight accounts. Sight account can be transferred to another account or converted into cash without restriction.

There has been a recent surge in these accounts lately, which indicates the SNB has been actively intervening in the currency markets.

With rising market uncertainty and hot money in search of safe havens, what does the future hold for the Swiss franc?

The single most important factor in the analysis is that hot-money safe-harbor inflows are clashing with the SNB’s cheaper franc policy.

The demand for Swiss francs will be driven by the lack of palatable alternatives. Investors are increasingly concerned about sterling because of conditions imposed by the EU, Ireland and others in the Brexit process. Brexit is irreversible, but satisfying all of the demands of interested parties to achieve Brexit will weaken the U.K. economy and sterling.

Likewise, the dollar and yen are both the cause of investor concern because of out-of-control debts. The Japanese debt-to-GDP ratio is over 250% and the U.S. debt-to-GDP ratio will soon be 110%. Any ratio higher than 90% is considered a danger zone by economists.

Almost all Japanese government debt is owned by the Japanese people, so there’s a higher threshold for panic in Japan than in the U.S. The U.S. debt is about 17% owned by foreign investors who could choose to dump it at any moment. Still, both Japan and the U.S. are on unsustainable paths and have shown no willingness to tackle their debt problems or reduce their debt-to-GDP ratios.

The euro offers better debt-to-GDP ratios than Japan or the U.S. in the aggregate. However, the European Central Bank is getting ready to pursue more quantitative easing and near-negative interest rate policies. The euro is also plagued by lingering doubts about the individual debt situations in Greece and Italy, a legacy of the 2010–2015 European debt crisis.

Meanwhile, the Swiss debt-to-GDP ratio is about 30%. In fact, Keynesians complain that its debt levels are far too low!

Russian rubles and Chinese yuan are unattractive for major global capital allocators because their markets lack liquidity and they do not have satisfactory rule-of-law regimes behind their currencies.

With dollars, yen, sterling, the euro and emerging-market currencies all unattractive for different reasons, the primary safe havens for global investors are Swiss francs, gold, silver and some of the smaller currencies such as Australian or Canadian dollars.

Many investors won’t allocate to gold because of investment restrictions or simple bias. This leaves the Swiss franc first in line to absorb huge global capital flows looking for a home.

The SNB may keep trying to knock down the Swiss franc by buying stocks, bonds, euros and anything else that’s not nailed down, but in the end it won’t be enough. Global capital will continue buying francs for lack of a better alternative.

Eventually the SNB will once again throw in the towel as they did in 2015 and allow the franc to appreciate sharply.

Having a strong currency is desirable. But in today’s world outside of a gold standard, having too strong a currency can actually be a curse.

END

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

TURKEY/CHINA

We now know what saved Turkey as they had run out of dollar reserves.  China has lent Turkey one billion dollars. Looks like the quid pro quo is Turkey facing Russia and China and abandoning the USA

(zerohedge)

Turkey Received $1 Billion Bailout From China As Reserves Ran Out

The last few months have seen the Turkish Lira rallying, rebounding off record lows, despite nothing positive coming from that country… and now we may have a better idea of how this lift was achieved (or how investors were fooled).

As Bloomberg reports, according to two people with direct knowledge of the matter said, Turkey received around $1 billion worth of funds from China in June under a swap agreement that dates back to 2012.

The cash boosted Turkey’s foreign reserves in an election month and at a time when they were under intense scrutiny from investors.

The scrutiny was due to the fact that, as we detailed previously, traders were questioning the reality of Turkey’s reserve data – which had been grossly manipulated for swap contracts and was – in real terms – practically zero…

The chart below shows two sets of numbers: Turkey’s true net foreign reserves, and the number that the central bank had used for public consumption, which includes the nominal amount of swaps.

So China stepped in to bail out Erdogan. The June inflow was the first time Turkey received such a substantial amount under the lira-yuan swap agreement with Beijing, one of the people said.

The question now is – what was Erdogan’s quid pro quo here. With NATO scrambling over Turkey’s decision to install Russian missile defense systems, is this ‘friendly gesture’ from China designed to confirm BRI issues will be swept under the carpet?

end

ITALY
What happens next in the crisis surrounding Italy.  In all likelihood we will have elections in mid October and a right wing government headed by Salvini will probably hea the next government.
(Buckely/Nomura)

“Pulling the Plug”: Here’s What Happens Next In The Italian Government Crisis

Submitted by Chiara Zangarelli and George Buckely, European Economists at Nomura

Pulling the plug: Crisis in the Italian government – the roadmap

Lega’s Matteo Salvini has effectively called time on the current Italian government. While it is still formally in place, from here it seems highly likely that parliament will be dissolved or a confidence vote on Prime Minister Conte will be called. What is still uncertain is the timing, though in the event of an early election it will most likely be between mid-October and mid-November. The outcome of such an election, if called, could have far-reaching consequences for both Italy’s fiscal position and its interaction with the EU.

First of all, amid this government crisis there are a series of deadlines to be met that could make the whole process of calling an election in coming months more complicated:

  • 26 August: Italy must present its candidate for European Commissioner. Mr Salvini had already provided a list of names to PM Conte.
  • 27 September: The government must present in parliament an update of the document of economy and finance (NaDef).
  • 15 October: The government must present its Draft Budgetary Plan to the EC.
  • 27 October: Regional vote in Umbria, followed by Calabria and Emilia Romagna.
  • 30 November: Brussels to express its opinion on Italy’s Draft Budgetary Plan.

There are several ways in which the current government crisis can be transformed into elections. It is not up to Mr Salvini to call new elections – his role of internal affairs minister does not allow it. Of course, if the party no longer wishes to cooperate with 5SM Prime Minister Conte will be required to submit his resignation to President Mattarella. From here the President of the Republic can either choose to accept the resignation immediately or ask for a no confidence vote on the current government. The latter could lengthen the process towards new elections by a number of weeks|. First of all, parliament will need to be recalled from summer recess to vote on the confidence motion against Mr Conte and that in itself would require few additional days – parliament is not due to return from recess until 9 September.

Once President Mattarella has officially accepted the resignation of Mr Conte – either immediately or after a vote of no confidence – Mr Mattarella will consider whether the current parliament will allow the formation of another majority  government (it seems very unlikely in this case) before opting for another election. If a new majority government cannot be found then the President of the Republic can officially dissolve parliament and call new elections. New elections should be held within 40 to 70 days from when parliament is dissolved.

The date of the elections depends on how long this whole process will take. If Mr Conte resigns without a vote of no confidence, Mr Mattarella accepts his resignation and parliament is dissolved next week then this is about the shortest possible timeline for new elections – which could be held by mid-October. However, if the government is removed via a vote of no confidence, then this will take longer and elections might not be expected to happen until mid-November at the earliest.

An important question is who, in this situation, would prepare the budget bill before year-end, in order that the planned VAT hike scheduled for early 2020 can be avoided? Both governing parties, 5SM and the League, agree on the fact that the VAT hike (worth €23bn) should be avoided. However, a newly formed government may not have enough time to act upon this.

The VAT hike clause is an instrument used by the Italian government enshrined in the budget law that intends to safeguard European deficit rules. It has been in place in Italy since 2011 (introduced by Mr Berlusconi’s government), but since then every government has either postponed or offset it with other measures to be compliant with European rules. This time should be no different. However, finding a way to plug the €23bn fiscal hole that postponing the VAT hike implies may not be easy, particularly if a government is not formed until the very end of the year.

Another key question is what government will result from new elections? While it is uncertain how the ‘alliances’ game plays out, it seems reasonable to conclude based on the opinion polls that it would be a League-led coalition. An alternative government could result from coalition talks between 5SM and PD, though we see this as less likely as we do not expect the two parties to run together as a coalition at the next elections. Our base case remains a right-wing coalition taking power after an election. Figure 1 shows that the League might only require the support of a smaller party such as Fratelli d’Italia (Brothers of Italy), thereby not requiring the support of Mr Berlusconi’s Forza Italia in the coalition. That would lead to a far-right government, the consequences of which may be increased concerns about Euroscepticism or even, in the extreme, fears of a euro exit (see Figure 2).

We had expected new elections not to take place until the spring of 2020. However, following this week’s news the likelihood of earlier elections has increased significantly. We now think that fresh elections will most likely take place between mid-October and mid-November 2019.

Our base case is of a far-right government headed by Mr Salvini’s Lega. However, much uncertainty remains on the exact date of these elections, which will depend crucially on PM Conte’s intentions and President Mattarella’s willingness to dissolve parliament. The results of the election could have far-reaching consequences for both Italy’s fiscal position and its interaction with the EU.

6.Global Issues

 

7. OIL ISSUES

China continues to defy USA sanctions by purchasing Iranian oil.  If China stops buying oil from Iran the price could plummet by 30 dollar per barrel

(zerohedge)

Finger On The Trigger: China’s Iran Oil Weapon

Two reports out this week worth paying attention to which could greatly impact oil prices at a crucial moment in which leaders in Tehran are desperately urging China to purchase more Iranian crude:

First, Reuters notes China continued importing Iranian oil in July for the second month since a US sanctions waiver ended, though at greatly diminished levels compared to the year prior, citing numbers from three data firms:

According to the firms, which track tanker movements, between 4.4 million and 11 million barrels of Iranian crude were discharged into China last month, or 142,000 to 360,000 barrels per day (bpd). The upper end of that range would mean July imports still added up to close to half of their year-earlier level despite sanctions.

And second, this via CNBC early this week, Brent and WTI price could crash if China buys Iranian oil.Bank of America is warning oil prices could potentially crash by $30 a barrel if China ramps up Iranian crude purchases.

 

The report summarized:

  • Bank of America Merrill Lynch warns the oil price could slip sharply if China buys Iranian oil.
  • Beijing could undermine Washington’s foreign policy stance by ignoring U.S. sanctions placed on Iran.
  • BofA is keeping its $60 per barrel price estimate in place for 2020.

Currently the Trump administration puts Iran’s oil exports at a range of 50-70% going to China, and with around 30% going to Syria.\

The New York Times

@nytimes

President Trump’s sanctions were meant to choke off Iran’s oil exports, its main source of income. But our investigation shows China and other countries are defying them, underscoring the difficulty the administration has had in countering Iran. https://nyti.ms/2yy4XrH

Defying U.S. Sanctions, China and Others Take Oil From 12 Iranian Tankers

The U.S. has been unable to halt Iranian oil exports.

nytimes.com

With the US and UK now aggressively choking the Tehran to Damascus trade, given last month’s UK Royal Marine intercept of the Grace 1 tanker off Gibraltar, Tehran’s economic survival is ever more dependent on selling to China – a country powerful enough to bust US sanctions.

Last week Iran’s Vice President Jahangiri made a direct appeal to Beijing and “friendly” countries to up their Iranian crude purchases in statements made during a Chinese diplomatic delegation visit.

“Even though we are aware that friendly countries such as China are facing some restrictions, we expect them to be more active in buying Iranian oil,” Jahangiri reportedly told visiting senior Chinese diplomat Song Tao.

Meanwhile, figures just prior to ending the waiver program:

You will find more infographics at Statista

China’s crude imports from Iran have been plunging this summer, sinking almost 60% in June compared to a year earlier. But Beijing could unleash severe oil volatility on global markets if it decides to reverse course; the General Administration of Chinese Customs is set to publish exact details of July imports by origin in the last week of August.

This also as the Chinese Ministry of Commerce threatened countermeasures in response to Trump’s fresh threats of a 10% tariff on $300 billion dollars of Chinese goods made a week ago.

end

 

8 EMERGING MARKET ISSUES

 

Malaysia
Malaysia criminally charges 17 Goldman Executives in the 1 MDB Scandal .  Malaysia just wants $7.5 billion in reparations
(zerohedge)

Malaysia Criminally Charges 17 Goldman Executives In 1MDB Scandal

After filing charges against the bankers who allegedly masterminded the bond deals that seeded Malaysian sovereign wealth fund 1MDB with billion of dollars for ‘development’ purposes, and then the three Goldman subsidiaries – Goldman Sachs International, Goldman Sachs (Asia) LLC and Goldman Sachs (Singapore) Pte. – operating in the region where the scam was perpetrated, Malaysia’s muckraking attorney general Tommy Thomas is now going after 17 current and former Goldman directors.

The criminal charges are the latest step in Thomas’s crusade to recover the billions of dollars – with a face value of $6.5 billion – that were allegedly stolen from 1MDB by former Prime Minister Najib Razak and his inner circle.

The Goldman directors were being charged under Malaysia’s Capital Markets and Services Act, which has provisions that hold senior executives responsible for violations committed by their organizations.

“They occupied the highest executive positions in those three Goldman Sachs subsidiaries, and exercised or ought to have exercised decision-making authority over the transactions of those bodies corporate,” a statement from Thomas’s office read.

In response to Thomas’s announcement, a Goldman spokesman said: “We believe the charges announced today, along with those against three Goldman Sachs entities announced in December last year, are misdirected and will be vigorously defended.”

This is a major turning point in the investigation, and despite Goldman’s legal heft, it’s unlikely that these top bankers will get off scott free. Thomas is threatening criminal fines and custodial sentences, “given the severity of the scheme to defraud and fraudulent misappropriation of billions in bond proceeds, the lengthy period over which the offences were planned and executed…and the relative value of the fees and commissions paid to Goldman Sachs.”

The move marks an escalation in the Malaysian government’s investigation into 1MDB. But perhaps it’s just Malaysia’s most aggressive push yet to convince Goldman to give in to its demands to hand over $7.5 billion in reparations over Goldman’s role in the scandal.

end

 

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

Euro/USA 1.1203 UP .0017 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /RED

 

 

USA/JAPAN YEN 105.74 DOWN 0.141 (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 1.2073   DOWN   0.0069  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3221 DOWN .0009 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  FRIDAY morning in Europe, the Euro FELL BY 8 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1219 Last night Shanghai COMPOSITE CLOSED DOWN 19.80 POINTS OR 0.71% 

 

//Hang Sang CLOSED DOWN 181.47 POINTS OR 0.69%

/AUSTRALIA CLOSED UP 0,32%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 181.47 POINTS OR 0.69%

 

 

/SHANGHAI CLOSED DOWN 19.80 POINTS OR 0.71%

 

Australia BOURSE CLOSED UP. 32% 

 

 

Nikkei (Japan) CLOSED UP 91.47  POINTS OR 0.44%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1503.40

silver:$17.01-

Early FRIDAY morning USA 10 year bond yield: 1.70% !!! DOWN 2 IN POINTS from THURSDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.22 DOWN 0  IN BASIS POINTS from THURSDAY night.

USA dollar index early FRIDAY morning: 97.54 DOWN 7 CENT(S) from  THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING

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And now your closing FRIDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.29% UP 6 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.22%  UP 3   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.26%//UP  3 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,81 UP 25 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 156 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.58% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.39% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR FRIDAY

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

Euro/USA 1.1214  DOWN     .0028 or 28 basis points

USA/Japan: 105.54 DOWN .345 OR YEN UP 35  basis points/

Great Britain/USA 1.2077 DOWN .0065 POUND DOWN 65  BASIS POINTS)

Canadian dollar UP 5 basis points to 1.3224

 

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The USA/Yuan,CNY: AT 7.0623    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0967  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.5046 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.22%

 

Your closing 10 yr US bond yield DOWN 2 IN basis points from THURSDAY at 1.70 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.21 DOWN 1 in basis points on the day

Your closing USA dollar index, 97.42 DOWN 19  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 32.05  0.44%

German Dax :  CLOSED DOWN 151.61 POINTS OR 1.28%

 

Paris Cac CLOSED DOWN 60.04 POINTS 1.11%

Spain IBEX CLOSED DOWN 111.20 POINTS or 1.25%

Italian MIB: CLOSED DOWN 516.92 POINTS OR 2.48%

 

 

 

 

 

WTI Oil price; 54.31 12:00  PM  EST

Brent Oil: 58.75 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    65.47  THE CROSS HIGHER BY 0.42 RUBLES/DOLLAR (RUBLE LOWER BY 42 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.58 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

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

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

WTI CRUDE OIL PRICE 4:30 PM :  54.42//

 

 

BRENT :  58.34

USA 10 YR BOND YIELD: … 1.74…

 

 

 

USA 30 YR BOND YIELD: 2.26..

 

 

 

 

 

EURO/USA 1.11204 ( UP 18   BASIS POINTS)

USA/JAPANESE YEN:105.63 DOWN .256 (YEN UP 26 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.49 DOWN 12 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2056 down 116  POINTS

 

the Turkish lira close: 5.4914

 

 

the Russian rouble 65.37   down 0.32 Roubles against the uSA dollar.( down 32 BASIS POINTS)

Canadian dollar:  1.3203 UP 27 BASIS pts

USA/CHINESE YUAN (CNY) :  7.0623  (ONSHORE)/

 

 

USA/CHINESE YUAN(CNH): 7.0942 (OFFSHORE)

 

German 10 yr bond yield at 5 pm: ,-0.58%

 

The Dow closed DOWN 90.68 POINTS OR 0.34%

 

NASDAQ closed DOWN 80.01 POINTS OR 1.00%

 


VOLATILITY INDEX:  17.46 CLOSED UP .55

LIBOR 3 MONTH DURATION: 2.181%//libor dropping like a stone

 

USA trading today in Graph Form

US Stocks Shrug Off China Tensions But Bonds & Gold Soar Most In Years

An ugly start to the week for stocks ended “meh” but bonds and bullion (and bitcoin) safe-havens were better bid…

Stocks message to the world “don’t panic!”, Bonds and Gold’s message “don’t panic, but protect!”

 

China stocks were considerably weaker on the week led by the tech-heavy Shenzhen index…

 

European stocks were also all lower on the day led by Italy (more political crises looming)…

European banks were battered to their lowest since June 2016’s Brexit vote…

 

 

Despite a lot of volatility, US equity markets scrambled back to small losses only on the week (S&P and Nasdaq best on the week, Trannies and Small Caps worst), but traders puked into the close on Friday…

 

 

Today was another ridiculous one, especially the panic bid in the last hour (absent headlines) to get The Dow into the green (Dow was the only index to make it green on the day), but an ugly close spoiled all the fun…

 

 

Dow futures have recovered Fib 61.8% of the post-Powell plunge…

 

 

Buybacks dominated the surge…

 

 

Defensives outperformed Cyclicals on the week…

 

FANG stocks ended the week lower – but the machines ran all the stops first…

 

 

VIX ended higher on the day, but unchanged on the week…

 

 

Bonds and stocks decoupled once again…

 

 

Treasury yields tumbled for the second week in a row…

 

 

This is the biggest 2-week drop in 10Y Yields since Aug 2011…

 

NOTE – the close to close vol was barely noticeable but intraday was huge (daily closes: 1.70, 1.70, 1.73, 1.72, 1.74)

 

Italian yields exploded higher on the week as political crises re-emerge…

 

 

The dollar ended the week lower, but traded in a narrow range…

 

 

Cable collapsed to a fresh cycle low (Surprise contraction in GDP)…

 

Offshore Yuan continued to plunge – its worst week since June 2018…

 

Cryptos were very mixed on the week with Bitcoin strong and altcoins weak…

 

Bitcoin just could not hold above $12,000…

 

Thanks to a decent bounce today, oil wasn’t as ugly as it could be on the week but PMs were best…

 

Gold soared over 4% on the week, above $1500 – its best week since April 2016…

 

 

Silver topped gold on the week, but was unable to hold $17…

 

WTI ramped back above $54 (after tagging a $50 handle mid-week…

 

 

Credit markets suggest this bounce in oil prices won’t last…

 

 

Global negative-yielding debt soared $700 billion this week (up over $3 trillion in the last month)

 

Finally, Rabobank’s recession indicator is at its highest in over 30 years…

Which explains why the market is demanding at least 4 rate-cuts by The Fed, to save the world…

Still, despite this week’s ‘resilience’ in stocks, they remain laggards since Powell started speaking and bonds and bullion the best…

And gold is now the leader year-to-date, marginally outpacing stocks…

 

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

MARKET TRADING//USA

a)Market trading/LATE MORNING/USA

This triggered a sell off in the Dow, Nasdaq and the yuan

(zerohedge)

Stocks, Yuan Plunge As Trump Warns “Could Cancel September Meeting” With China

The machines busily lifted stocks up at the US cash market open to fill the gap down triggered by Huawei license ban headlines overnight.

However, once that gap was filled and stops run, headlines from President Trump, speaking to a reporter pool, triggered selling pressure.

President Trump tells reporters “it’s going very well with China,” but the U.S. is not ready to make a deal.

“In the case of China, the tariffs have been amazing,”

Trump also said that he has “no choice but to what he’s doing on China,” and said trade talks with China scheduled to be held in Washington in September might not happen.

“We have an open dialogue — we’ll see whether or not we keep our meeting in September.”

“If we do, that’s fine, if we don’t, that’s fine”

Bloomberg TicToc

@tictoc

“The American taxpayer’s not paying for it.”

Despite wide disagreement among economists, Trump says people in the U.S. won’t foot the bill for China’s tariffs because “by depressing their currency and pouring tremendous amounts money into their system, they’re paying for it”

Embedded video

Additionally, Trump says U.S. is not going to do business with Huawei.

And down we go again…

Dow down..

But Nasdaq worst – below overnight lows…

And Yuan is back at overnight lows…

END

b)MARKET TRADING/USA/AFTERNOON

Dollar, Yuan, & Stocks Are Dumping

But, but, but… yesterday the markets were so “resilient“?

The Dollar has dumped to 10-day lows…

 

Yuan is tumbling to the week’s lows…

 

And stocks have caught down to yesterday’s bond reality…

 

Sell the rip?

ii)Market data/USA

USA producer prices drops for the first time in 30 months

(zerohedge)

US Producer Prices Drop For First Time In 30 Months

Following last night’s deflationary print in China PPI (and super-inflationary food CPI print) from China, all eyes are back on the US hoping for some dismal producer price data offering Powell more ‘data’ to be ‘dependent’ on.

And ‘they’ were given just that – a dismal miss on core PPI (even if the headline was in line), with Final Demand rising just 1.7% YoY – the weakest since January 2017.

PPI ex food and energy slipped 0.1% MoM (against expectations for a 0.1% rise) – the first monthly deflation since early 2017…

But it was the ex-food, energy, and trade services that really tumbled (slowing from +2.1% YoY to +1.7% YoY).

The cost of goods rose 0.4% after falling 0.4% the previous month. Services prices decreased 0.1% after a 0.4% gain in June.

A major factor in the decline in prices for final demand services was the index for guestroom rental, which moved down 4.3 percent – so blame AirBnB for unleashing the deflationary tsunami.

We await yet another tweet from President Trump proclaiming the lack of inflation and demanding action from The Fed.

 

iii) Important USA Economic Stories

My goodness! It seems that Russiagate is certainly hurt these bozos

(zerohedge)

New York Times Shares Continue Plunge After Company Admits Ad Revenue Will Decline Next Quarter

Shares of “the failing New York Times” were crushed up to 20% on Wednesday after the company told investors that it expects its advertising revenue to fall by “high single digits” in the third quarter, according to Markets Insider.

The company’s revenue came in at $436.25 million, which fell short of the $439.25 million that analysts were expecting. And, despite beating on EPS by $0.02, the company’s operating profit fell from last year to $37.9 million, from $40 million.

The kicker, however, was when the company admitted that it expected total ad revenue to fall in the high single digits in the third quarter compared to last year. Digital ad revenue, which continues to account for a larger portion of the company’s advertising mix, is also expected to fall by high single digits.

 

“We expect the second half of 2019 to be somewhat more challenging for digital advertising than the first half, with this year’s revenue comping against our large gains in the third and fourth quarters of 2018.”

Digital advertising had accounted for 48.1% of the company’s total ad revenue in the second quarter.

The company guided for subscription sales to rise by “low to mid single digits” in Q3 and digital subscriptions to rise in the “mid-teens”.

The Times said that it added 197,000 digital subscribers during the period, which brings its total subscriber base to 4.7 million. The company’s goal is to hit 10 million total subscriptions by 2025.

CEO Thompson concluded: “While profitability declined in the quarter, that is in large part a result of continued investment into growing our subscription business.”

Seems like perhaps the death of RussiaGate and Mueller’s Report have spoiled the party?

end

Another great commentary from Mish Shedlock as he states that we must expect a huge debt deflation as the central bankers are losing control

(Mish Shedlock/Mishtalk)

The Fed Is Trapped In A Rate-Cutting Box: It’s The Debt, Stupid!

Authored by Mike Shedlock via MishTalk,

The Fed desperately needs to keep credit expanding or the economy will collapse. However, it’s an unsustainable scheme.

Key Debt Points

  • In 1984 it took $1 of additional debt to create an additional $1 of Real GDP.
  • As of the fourth quarter of 2018, it took $3.8 dollars to create $1 of real GDP.
  • As of 2013, it took more than a dollar of public debt to create a dollar of GDP.
  • If interest rates were 3.0%, interest on total credit market debt would be a whopping $2.16 trillion per year. That approximately 11.5% of real GDP year in and year out.

Total Credit Market Debt Detail

Tiny Credit Drawdown, Massive Economic Damage

Note the massive amount of economic damage caused by a tiny drawdown in credit during the Great Recession

Q. Why?

A. Leverage.

The Fed halted the Great Recession implosion by suspending mark-to-market accounting.

What will it do for an encore?

Choking on Debt

The Fed desperately needs to force more debt into the system, but the system is choking on debt.

That’s the message from the bond market.

One look at the above charts should be enough to convince nearly everyone the current model is not close to sustainable.

Here’s another.

Housing Bubble Reblown

How the heck are millennials (or anyone who doesn’t have a home) supposed to afford a home?

Despite the fact that Existing Homes Prices Up 88th Month, the NAR Can’t Figure Out Why Sales Are Down.

Negative Yield Ponzi Scheme

Note that Negative Yield Debt Hits Record $15 Trillion, Up $1 Trillion in 2 Business Days.

So far, all of this negative-yielding debt is outside the US.

Why?

  1. The ECB made a huge fundamental mistake. Whereas the the Fed bailed out US banks by paying interest on excess reserves, the ECB contributed to the demise of European banks, especially Italian banks and Deutsche by charging them interest on excess reserves that it forced into the system.
  2. The demographics in Europe and Japan are worse than the US.

Tipping Point

We are very close to the tipping point where the Fed can no longer force any more debt into the system. That’s the clear message from the bond market.

Currency Wars

Meanwhile, major currency wars are in play.

Under orders from Trump, US Treasury Declares China a Currency Manipulator.

Hello Treasury Bears

For decades, bond bears have been predicting massive inflation.

Once again, I caution Hello Treasury Bears: 10-Year Bond Yield Approaching Record Low Yield.

Fed Misunderstands Inflation

The Fed remains on a foolish mission to achieve 2% inflation.

In reality, the Fed produced massive inflation but does not know how to measure it.

Inflation is readily see in junk bond prices, home prices, equity prices, and credit expansion.

Note that small credit contraction in 2008-2010. Recall the ‘Great Recession” damage that accompanied it.

I do not expect a repeat on that scale, all at once. But I do expect a prolonged period of credit stagnation as retiring boomers start to worry about their retirement. All it will take to set the wheels in motion is a prolonged downturn in the equity markets.

Economic Challenge to Keynesians

Of all the widely believed but patently false economic beliefs is the absurd notion that falling consumer prices are bad for the economy and something must be done about them.

My Challenge to Keynesians “Prove Rising Prices Provide an Overall Economic Benefit” has gone unanswered.

BIS Deflation Study

The BIS did a historical study and found routine deflation was not any problem at all.

“Deflation may actually boost output. Lower prices increase real incomes and wealth. And they may also make export goods more competitive,” stated the BIS study.

It’s asset bubble deflation that is damaging. When asset bubbles burst, debt deflation results.

Deflationary Outcome

The existing bubbles ensure another deflationary outcome.

So prepare for another round of debt deflation, possibly accompanied by a lower CPI especially if one accurately includes home prices instead of rents in the CPI calculation.

Central banks’ seriously misguided attempts to defeat routine consumer price deflation is what fuels the destructive asset bubbles that eventually collapse.

For a discussion of the BIS study, please see Historical Perspective on CPI Deflations: How Damaging are They?

Message from Gold

Please pay attention to gold. As Gold Blasts Through $1500, the Message is Central Banks Out of Control, Not Inflation

Inflation is, or will soon be, in the rear-view mirror. Another deflationary credit bubble bust is at hand.

END

iv) Swamp commentaries)

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

Germany provided some drama and trading grist on Thursday.  European stocks and sovereign yields rose when Reuters reported:

Germany mulls fiscal policy U-turn, eyes new debt for climate protection – ditching its long cherished balanced budget goal by issuing new debt to finance a costly climate protection package, a senior government official told Reuters on condition of anonymity…

https://www.nasdaq.com/article/germany-mulls-fiscal-policy-uturn-eyes-new-debt-for-climate-protection-20190808-00721

It didn’t take long for an official German denial to the deficit spending for climate change rumor.

Germany Says There’s Been No Decision to Give Up Balanced Budget

The comment from a spokesman at the German finance ministry followed a report by Reuters news agency that the government is considering issuing new debt to fund a climate protection package. Reuters cited an unidentified senior government official…

https://www.bnnbloomberg.ca/germany-says-there-s-been-no-decision-to-give-up-balanced-budget-1.1299047

Ex-ECB VP @VMRConstancio: Rumours about Germany going into (small) spending stimulus increased yields a few b.p. in Europe, showing that an increase in safe assets supply works. Debt markets stabilized. Then German Ministry rushed to say they keep a zero deficit policy… Waiting for a recession?

Italian Bonds Fall after Salvini Threatens to Break Up Coalition

https://www.bnnbloomberg.ca/italian-bonds-fall-after-salvini-threatens-to-break-up-coalition-1.1298845

After the European drama was digested, ESUs traded sideways.  However, the recurring rally to boost the NYSE open appeared.  For about 50 minutes ESUs vacillated in a five handle range as sellers and buyers paired off.  After a modest dip below the range, the quest to fill the down gap from Monday went into high gear.  Determined manipulators pushed ESUs almost vertically higher.  Traders engineered 34-handle rally in 73 minutes.  The gap fillers were aided and abetted by the Mouth that Roared.

@realDonaldTrump: As your President, one would think that I would be thrilled with our very strong dollar. I am not! The Fed’s high interest rate level, in comparison to other countries, is keeping the dollar high,making it more difficult for our great manufacturers like Caterpillar, Boeing, John Deere, our car companies, & others, to compete on a level playing field. With substantial Fed Cuts (there is no inflation) and no quantitative tightening, the dollar will make it possible for our companies to win against any competition. We have the greatest companies in the world, there is nobody even close, but unfortunately the same cannot be said about our Federal Reserve. They have called it wrong at every step of the way, and we are still winning. Can you imagine what would happen if they actually called it right?  [It’s time for a Team Trump or family member or BFF tell DJT to shut up already re: the Fed.]

From yesterday’s King Report: Wiser guys will be on the alert for the asset allocation trend.  Will there be more ESU short covering from defensive asset allocators…?

Bonds tumbled over 2 points while ESUs soared on Thursday morning.  This is proof that defensive asset allocators on the run (to cover) were a primary driver of the equity rally.

The US 30-year bond auction was soft: 2.335% vs. 2.323% pre-sale when issued.  Bonds sank to their session low on the results of the auction.  USUs (September 30-year bond contract) dropped to 159.23.

Wall Street veterans know that when US debt declines into Treasury Auctions, the 30-year bond auction often generates a reversal.  Street dealers try to foment a rally after the 30-year of final US debt tranche in order to markup merchandise for sale to the masses.  Often, dealers and their allies force bonds lower before the auction to pickoff the Treasury.  This was a common practice during the late Seventies and in other times when US debt was a tough sell

The NYT’s Nate Cohn: Don’t Assume Trump’s Approval Rating Can’t Climb Higher. It Already Has.  Millions of Americans who did not like the president in 2016 now say they do.

https://www.nytimes.com/2019/08/07/upshot/trump-approval-rating-rise.html

In New Interview, Bill Barr Sees Dirty Harry, Death Wish as Justice Done Right

“I believe a sense of justice is hardwired into human beings,” Barr recalled during an interview with Crime Story podcast host Kary Antholis. “Don’t ask me why, but it is there and it’s satisfying to see justice done.”…

    Antholis had asked Barr about his belief in the so-called “Ferguson effect,” the idea that anti-police brutality protests following the 2014 shooting of Michael Brown in Ferguson, Missouri, have led to more timid police and increased crime rates. “If police feel that they are going to be unfairly treated or unjustly disciplined for something they felt was a righteous act of self-defense, and there’d be what they feel is unfair Monday morning quarterbacking, they will not take those risks,” Barr said…

https://talkingpointsmemo.com/muckraker/bill-barr-interview-dirty-harry-death-wish-vigilante-justice

@KimStrassel: So, Andy McCabe is now suing DOJ for “politically motivated” firing. This after the IG found he’d made “unauthorized” disclosures and “lacked candor” when he was questioned about it.

@seanmdav: The timing of these bizarre lawsuits from McCabe and Strzok makes me wonder if they’re trying to get ahead of indictments stemming from the DOJ inspector general’s investigation into FBI corruption and attempting to pose as victims of retaliation.

WSJ Editorial Board: California Goes to the Rats

Sacramento’s solution to rodent-borne disease? Ban rodenticides

    L.A. isn’t alone. There were so many rats scurrying around the California EPA office in Sacramento this summer that the agency had to close its outdoor playground to prevent children from getting sick…

    If only there were an antidote to California’s toxic progressive politics…

https://www.wsj.com/articles/california-goes-to-the-rats-11565216091?shareToken=st54f48208eab245b7b8eeffd35af41fb9

CNN: El Paso suspect’s mother called police concerned about gun

public safety officer who told her that — based on her description of the situation — her son, 21, was legally allowed to purchase the weapon…  https://www.cnn.com/2019/08/07/us/el-paso-crusius-gun-warning/index.html

The Daily Mail reports what ABC and other US media wouldn’t: ‘We choose truth over facts!’ Gaffe-prone Joe Biden hits the Iowa State Fair by mangling his campaign soundbite

https://www.dailymail.co.uk/news/article-7338843/We-choose-truth-facts-Joe-Biden-mangles-campaign-soundbite-iowa-State-Fair.html

And another Biden gaffe in Iowa: “Poor kids are just as bright and just as talented as white kids.”

https://twitter.com/TrumpWarRoom/status/1159631109677867009

@TuckerCarlson: Here’s why they’re pushing racial division: so you won’t notice the real divide, which is economic.   https://twitter.com/TuckerCarlson/status/1159464087484583937

Dem Activist ‘Jokes’ About Setting Fire to Tucker Carlson

https://www.infowars.com/dem-activist-jokes-about-setting-fire-to-tucker-carlson/

Baltimore Sun Attacks Trump Supporter Who Organized Massive City Clean Up

https://townhall.com/tipsheet/timothymeads/2019/08/07/baltimore-sun-attacks-trump-supporter-who-organized-massive-city-clean-ip-n2551319

Pulte Home CEO Bill Pulte @pulte: Somebody cleaned up 12 tons of trash, and somebody found a way to not be happy about that. You can’t make this stuff up.  We need to unite. We need to come together. We need to love each other again!

Ads Pulled for Gory Universal Thriller ‘The Hunt’ in Wake of Mass Shootings

The studio is evaluating its strategy for the R-rated Blumhouse satire in which elites stalk “deplorables.”… [A movie about elites assassinating DJT supporters, yet the MSM and GOP is mum.]

    “Did anyone see what our ratf%*#er-in-chief just did?” one character asks early in the screenplay for The Hunt, a Universal Pictures thriller set to open Sept. 27. Another responds: “At least The Hunt’s coming up. Nothing better than going out to the Manor and slaughtering a dozen deplorables.”…

https://www.hollywoodreporter.com/news/ads-pulled-hunt-wake-mass-shootings-1229829

Ex-DoD Intel operative @JasonButtrill: The original title for the movie was Red State vs Blue State. I kid you not. It’s like they want chaos and a civil war so badly that they can’t hide it anymore.

Despite backlash, Universal Pictures has ‘no plans’ to shelve forthcoming horror movie in which rich people hunt so-called ‘deplorables,’ source tells Fox News

Well that is all for today

I will see you Monday night.

 

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