AUGUST 12/SILVER SHORT COVERING BY THE BANKS: SILVER IS UP 11 CENTS TO $17.08//GOLD UP %7.30 TO $1506.10//PROTESTERS CONTINUE TO PLAY HAVOC IN HONG KONG//MAINLAND CHINA HAS THEIR ARMY ON FULL ALERT READY TO CROSS OVER FROM SHENZEN//REPO RATES RISE TO 8% AS BANKS IN CHINA DO NOT TRUST ONE ANOTHER//JEFFERY EPSTEIN “APPARENTLY” COMMITTED SUICIDE WHILE ON SUICIDE WATCH//BARR FURIOUS!!//ARGENTINIAN BONDS AND CURRENCY COLLAPSE AFTER THE ELECTION OF A LEFTIST PARTY../LOTS OF SWAMP STORIES FOR YOU TONIGHT//.

GOLD:$1506.10  UP $7.30(COMEX TO COMEX CLOSING

 

 

 

 

 

 

 

 

 

Silver: $17.08 UP 11 CENTS  (COMEX TO COMEX CLOSING)/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closing access prices:

 

 

Gold : $1512.40

 

silver:  $17.08

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 9/24

EXCHANGE: COMEX
CONTRACT: AUGUST 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,496.600000000 USD
INTENT DATE: 08/09/2019 DELIVERY DATE: 08/13/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
118 H MACQUARIE FUT 4
661 C JP MORGAN 9
686 C INTL FCSTONE 1
690 C ABN AMRO 22
737 C ADVANTAGE 2 2
880 H CITIGROUP 8
____________________________________________________________________________________________

TOTAL: 24 24
MONTH TO DATE: 4,448

 

NUMBER OF NOTICES FILED TODAY FOR  AUGUST CONTRACT: 24 NOTICE(S) FOR 2400 OZ (0.0746 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  4448 NOTICES FOR 444800 OZ  (13.835 TONNES)

 

 

 

SILVER

 

FOR JULY

 

 

81 NOTICE(S) FILED TODAY FOR 405,000  OZ/

 

total number of notices filed so far this month: 1686 for   8,430,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 11,352 DOWN 168 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 11,443 DOWN 76

 

 

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A HUGE  SIZED 4308 CONTRACTS FROM 243,775 DOWN TO 238,798 DESPITE THE 2 CENT GAIN IN SILVER PRICING AT THE COMEX, AND SILVER OI SPREADERS ACCUMULATION.  WE MUST HAVE HAD SOME BANKERS SCARED IN SILVER SO THEY STARTED TO COVER THEIR MASSIVE  SHORTFALL.

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:,

AUGUST, 0 FOR SEPT 1068 CONTRACTS, DEC  157 CONTRACTS, AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1225 CONTRACTS. WITH THE TRANSFER OF 1225 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 1225 EFP CONTRACTS TRANSLATES INTO 6.125 MILLION OZ  ACCOMPANYING:

1.THE 2 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

8.975   MILLION OZ INITIAL STANDING IN AUGUST.

 

WE HAD ATTEMPTED COVERING OF SHORTS AT THE SILVER COMEX FRIDAY WITH SOME SUCCESS (AS COMEX OI DECLINED)..AND SOME ZERO 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:

13,610 CONTRACTS (FOR 8 TRADING DAYS TOTAL 13,610 CONTRACTS) OR 68.05 MILLION OZ: (AVERAGE PER DAY: 1701 CONTRACTS OR 8.841 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JULY:  68.05 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 9.72% 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:          1380.56   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 HUGE SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 4308, DESPITE THE 2 CENT GAIN IN SILVER PRICING AT THE COMEX /FRIDAY... THE CME NOTIFIED US THAT WE HAD A  GOOD SIZED EFP ISSUANCE OF 1225 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) .

 

TODAY WE LOST A VERY STRONG  SIZED: 4091 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 1225 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 5316  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 2 CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $16.97 WITH RESPECT TO FRIDAY’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. 1.189 BILLION OZ TO BE EXACT or 170% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 81 NOTICE(S) FOR 405,000 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. WE ARE CLOSE TO THE RECORD BUT AT HIGHER PRICES. 

 

 

.

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 8.975 MILLION OZ
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018) AND NOW AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

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

.

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A CONSIDERABLE SIZED 4273 CONTRACTS, TO 598,150 ACCOMPANYING THE  $2.00 PRICING LOSS WITH RESPECT TO COMEX GOLD PRICING FRIDAY// /(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 GOOD SIZED 4053 CONTRACTS:

AUGUST 2019: 0 CONTRACTS, DEC>  4053 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 598,150,,.  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 SMALL SIZED LOSS IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 220 CONTRACTS: 4273 CONTRACTS DECREASED AT THE COMEX  AND 4053 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI LOSS OF 220 CONTRACTS OR 22,000 OZ OR 0.68 TONNES.  FRIDAY WE HAD A SMALL LOSS OF $2.00 IN GOLD TRADING….AND WITH THAT LOSS IN  PRICE, WE  HAD A SMALL LOSS IN GOLD TONNAGE OF 0.68  TONNES!!!!!! THE BANKERS SEEMED FINALLY TO BE SCARED OF SOMETHING AS THEY STARTED TO COVER THEIR GOLD SHORTFALL! 

 

 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF AUGUST : 92,752 CONTRACTS OR 9,275,200 oz OR 288.49 TONNES (8 TRADING DAY AND THUS AVERAGING: 11,594 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 8 TRADING DAY IN  TONNES: 288.49 TONNES

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

THUS EFP TRANSFERS REPRESENTS 288.49/3550 x 100% TONNES =8.12% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     3799.73  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 CONSIDERABLE SIZED DECREASE IN OI AT THE COMEX OF 4273 WITH THE  PRICING LOSS THAT GOLD UNDERTOOK FRIDAY($2.00)) //.WE ALSO HAD  A GOOD SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 4053 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 4053 EFP CONTRACTS ISSUED, WE  HAD A SMALL LOSS OF 220 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

4053 CONTRACTS MOVE TO LONDON AND 4273 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE LOSS IN TOTAL OI EQUATES TO 0.68 TONNES). ..AND THIS DECREASE OF  DEMAND OCCURRED WITH THE  LOSS IN PRICE OF $2.00 WITH RESPECT TO FRIDAY’S TRADING AT THE COMEX.

THE COMEX IS NOW UNDER FULL ASSAULT WITH RESPECT TO GOLD AND SILVER. THE BANKERS ARE STARTING TO COVER THEIR HUGE SHORTFALL..SOMETHING IS TERRIBLY SCARING THEM.

 

 

 

 

 

 

 

 

we had:  24 notice(s) filed upon for 2400 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

WITH GOLD UP $7.30 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 11 CENTS TODAY:

NO CHANGE IN SILVER INVENTORY AT 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 HUGE SIZED 5316 CONTRACTS from 243,106  DOWN TO 237,790 AND FURTHER FROM THE NEW COMEX RECORD SET LAST IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  1 1/3 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.  AS YOU CAN SEE, WE HAVE RECORD HIGH OPEN INTERESTS IN SILVER  ACCOMPANIED BY A CONTINUAL LOWER PRICE WHEN THAT RECORD WAS SET…..THE SPREADERS HAVE COMMENCED THEIR ACCUMULATION OF OPEN INTEREST CONTRACTS IN SILVER AND STOPPED THE LIQUIDATION OF THE SPREADERS IN GOLD

 

 

 

 

EFP ISSUANCE: 

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

 FOR AUGUST: 0, FOR SEPT. 1068; DECEMBER: 157 CONTRACTS,  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1225 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 5316  CONTRACTS TO THE 1225 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN AN ATMOSPHERIC AND CRIMINALLY SIZED LOSS OF 4091 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE LOSS ON THE TWO EXCHANGES: 20.46 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/2018, A STRONG 7.475 MILLION OZ FOR AUGUST/2018..  A HUGE 39.505  MILLION OZ  STANDING FOR SILVER IN SEPTEMBER/2018… 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/2019. 2.955 MILLION OZ STANDING IN FEBRUARY,  27.120 MILLION OZ FOR MARCH., 3.875 MILLION OZ FOR APRIL/2019  18.765 MILLION OZ FOR MAY 2019: 2.660 MILLION OZ FOR JUNE WITH JULY AT 22.605 MILLION OZ ;AUGUST 2019 AT 8.975 MILLION OZ//

 

 

RESULT: A GIGANTIC SIZED DECREASE IN SILVER OI AT THE COMEX DESPITE THE 2 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// FRIDAY. WE ALSO HAD A GOOD SIZED 1225 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. SOMETHING SCARED OUR BANKERS AS THEY HAVE DECIDED IT BEST TO TRY AND COVER SOME OF THEIR HUGE SHORTFALL IN BOTH GOLD AND SILVER.

 

 

(report Harvey)

.

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED UP 40.24 POINTS OR 1.45%  //Hang Sang CLOSED DOWN 114.58 POINTS OR 0.44%   /The Nikkei closed UP 91,47 POINTS OR 0.44%//Australia’s all ordinaires CLOSED UP .10%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0588 /Oil UP TO 54.00 dollars per barrel for WTI and 58.10 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0588 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1022 TRADE TALKS STALL//YUAN LEVELS NOW PAST 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

North Korea

North Korea continues to fire short range missiles which according to Trump is permissible’

(zerohedge)

3b) REPORT ON JAPAN

3C  CHINA

i)Hong Kong/Saturday

Hong Kong police fire tear gas on protesters in the 10th straight week of demonstations

(zerohedge)

ii)Hong Kong/China

Hong kong on edge as Chinese troops gather in southern province of Shenzen.  Hundreds of flights are called over protestor “terrorism”
(zerohedge)
iii)Global Times shows dramatic video of the Chinese army preparing for a Hong Kong invasion
(zerohedge)

iv)Expect the yuan to devalue more and a Chinese bankers warns that Beijing might dump all of its USA treasuries  (which I doubt)

(zerohedge)

v)Expect the yuan to devalue more and a Chinese bankers warns that Beijing might dump all of its USA treasuries  (which I doubt)

(zerohedge)
vi)When should the globe panic where the ultimate value of the yuan would be?  Answer: 7.30
and then Armageddon
(zerohedge)

vii)China’s total Financing report is a great disappoint as their economy slows down to a walk. This may be intentional as they are seeking some dry powder in access the trade wars escalate even further.(courtesy zerohedge)

4/EUROPEAN AFFAIRS

Here Mish Shedlock describes how the remainers are trying to disillusion citizens.

We will have a hard Brexit and Great Britain will be better off.

(Mish Shedlock/Mishtalk

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Israel/the Gulf/Iran

Iran threatens Israel with war if they join the USA flotilla in the Gulf.  There is really no need for Israel vessels. However they couldprovide raw intelligence.

(zerohedge)

6.Global Issues

i)Argentina
Argentina now in trouble as the leftists wins a stunning victory over the pro business reformists under Macri.
The bonds collapse as well as the currency as 61 Argentina Pesos per dollar
(zerohedge)

ii)Bill Blain talks about all of the  problems facing the globe(zerohedge)

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

a)In essence the big manipulator of currencies etc is the uSA not China

(Marsh/Sobel/GATA)

b)It is about time:  India is now a step closer to having it’s first gold exchange

(London’s Financial Times))

c)USAWatchdog, Greg Hunter interviews Bill Murphy on the gold/silver suppression

(GATA/Greg Hunter/USAWatchdog/zerohedge)

d)We have been highlighting to you on several occasions, China’s attempt to hoard gold and oil. It seems that they are now eager to hoard food and other commodities in anticipation of a global collapse

(Michael Snyder)

e)Tom Luongo is not necessarily a gold or silver bug.  However he now comments that there are big signals that suggest a big upward movement in these two precious metals

(Tom Luongo)

f)Chinese demand seems down by a full 10% but I do not think it is a lack of demand but instead it is a lack of supply coming from the west

(Lawrie Williams)

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/THIS MORNING/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

Market data/USA

For two months of the year the budgetary deficit climbs to 867 billion dollars.  And remember this does not include auto loans and student loans (because there is a corresponding asset).  The true deficit is therefore somewhere north of $1 trillion heading to 1.2 trillion dollars for the fiscal year.  The USA financial scene is truly a mess

(zerohedge

iii) Important USA Economic Stories

USA lobster prices are now much higher than Cdn lobster prices. It seems that China is willing to overlook the taking of the COO Meng (Huawei) as they import tons and tones of Cdn lobster.(

zerohedge)

iv) Swamp commentaries)

i)Jeffery Epstein dies of an apparent suicide

(zerohedge)

ii)It sure looks like suicide is impossible when you are on suicide watch

(zerohedge)

iii)Epstein’s autopsy results are delayed:”pending further information”.  What on earth could that pending information be??

(zerohedge)

iv)Epstein’s autopsy results are delayed:”pending further information”.  What on earth could that pending information be??

(zerohedge)

v)Now Michael Snyder gives us 7 unanswered questions concerning Epstein’s death that the mainstream media is just ignoring.

(Michael Snyder)

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

 

LET US BEGIN:

 

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A CONSIDERABLE SIZED 4273 CONTRACTS TO A LEVEL OF 598,150 ACCOMPANYING THE SMALL LOSS OF $2.00 IN GOLD PRICING WITH RESPECT TO FRIDAY’S // COMEX TRADING)

WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF JULY..  THE CME REPORTS THAT THE BANKERS ISSUED GOOD SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 4053 EFP CONTRACTS WERE ISSUED:

 FOR AUGUST; 0 CONTRACTS: DEC: 4053   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  4053 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 LOST THE FOLLOWING TODAY ON OUR TWO EXCHANGES: 220 TOTAL CONTRACTS IN THAT 4053 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A CONSIDERABLE SIZED 4273 COMEX CONTRACTS.  THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD TO CONTAIN THE PRICE AS WELL AS ATTEMPTING TO COVER THEIR HUGE PAPER SHORTFALL. 

 

NET LOSS ON THE TWO EXCHANGES ::  220 CONTRACTS OR 22000 OZ OR 0.68 TONNES.

 

We are now in the  active contract month of AUGUST and here the open interest stands at 2385 CONTRACTS as we LOST 33 contract.  We had 18 notices filed yesterday so we LOST ONLY 15 contracts or 1500 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 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 3 contracts DOWN TO 3791.  The next active delivery month is October and here the OI ROSE by 911 contracts UP to 46,565.

 

 

TODAY’S NOTICES FILED:

WE HAD 24 NOTICES FILED TODAY AT THE COMEX FOR  600 OZ. (0.6874 TONNES)

 

 

 

 

 

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And now for the wild silver comex results.

Total COMEX silver OI FELL BY A GIGANTIC SIZED 5316 CONTRACTS FROM 243,775 DOWN TO 237,790 (AND FURTHER FROM THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S CONSIDERABLE  OI COMEX LOSS OCCURRED DESPITE A 2 CENT GAIN IN PRICING.//FRIDAY. WE MUST HAVE HAD CONSIDERABLE BANKER SHORT COVERING.

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF AUGUST.  HERE WE HAVE 190 OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 66 CONTRACTS.  WE HAD 147 NOTICES FILED YESTERDAY SO WE GAINED A FULL 81 CONTRACTS OR AN ADDITIONAL 405,000 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 9943 CONTRACTS DOWN TO 132,497 CONTRACTS. OCTOBER RECEIVED ANOTHER 17 CONTRACTS TO STAND AT 167.  NEXT ACTIVE DELIVERY MONTH IS DECEMBER AND HERE THE OI RISES BY 4797 CONTRACTS UP TO 72,032.

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 81 notice(s) filed for 405,000 OZ for the AUGUST, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY: 297,148  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  357,116  contracts

 

 

 

 

 

INITIAL standings for  AUGUST/GOLD

AUGUST 12/2019

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
nil oz
Deposits to the Dealer Inventory in oz nil oz

 

 

 

 

Deposits to the Customer Inventory, in oz  

4501.000

 

240 kilobars

 

No of oz served (contracts) today
24 notice(s)
 2400 OZ
(0.0746 TONNES)
No of oz to be served (notices)
2361 contracts
(236100 oz)
7.343 TONNES
Total monthly oz gold served (contracts) so far this month
4448 notices
444800 OZ
13.835 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 1 kilobar entries

 

 

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

 

we had 1 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into BNS:   4501.000  oz

 

 

 

total gold deposits: 4501.00  oz

today: very little gold arrives from outside/ a tiny amount ..and it was of the kilobar variety.

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 24 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 9 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

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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 (4448) x 100 oz , to which we add the difference between the open interest for the front month of  AUGUST. (2385 contract) minus the number of notices served upon today (24 x 100 oz per contract) equals 680,900 OZ OR 21.178 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 (4448 x 100 oz)  + (2285)OI for the front month minus the number of notices served upon today (24 x 100 oz )which equals 680,900 oz standing OR 21.178 TONNES in this  active delivery month of AUGUST.

We LOST 15  contracts or an additional 1500 oz will NOT stand as these guys morphed into London based forwards as well as accepting a fiat bonus. THERE IS NO GOLD 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 21.178  TONNES OF GOLD STANDING// JUDGING BY THE STRONG SIZE OF THE COMEX NOTICES FILED TODAY, IT LOOKS LIKE SOMEBODY IS WILLING TO TAKE ON THE CROOKS AT THE COMEX. WE ALSO HAD SOME BANKER SHORT COVERING.

 

 

 

total registered or dealer gold:  514,823.353 oz or  16.013 tonnes 
total registered and eligible (customer) gold;   7,784,816.536 oz 242.14 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 12 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 551,056.700 oz
BRINKS
DELAWARE

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
600,025.790 oz
Scotia
No of oz served today (contracts)
81
CONTRACT(S)
(405,000 OZ)
No of oz to be served (notices)
109 contracts
 545,000 oz)
Total monthly oz silver served (contracts)  1686 contracts

8,430,000 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

 

 

i) Into Scotia: 600,025.790 oz

 

 

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

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

 

 

 

 

total customer deposits today:  600,025.790  oz

 

we had 2 withdrawals out of the customer account:

 

 

i) Out of BRINKS:  530,120,400 OZ

ii) out of Delaware:  936.00 oz

 

 

 

 

 

 

 

total 551,056.700  oz

 

we had 1 adjustment :

i) Out of CNT: 212,699.500 oz was adjusted out of the customer account of CNT and this landed into the dealer account of CNT

 

total dealer silver:  93.351 million

total dealer + customer silver:  311.233 million oz

The total number of notices filed today for the AUGUST 2019. contract month is represented by 81 contract(s) FOR 405,000 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 1686 x 5,000 oz = 8,430,000 oz to which we add the difference between the open interest for the front month of AUGUST. (190) and the number of notices served upon today 81 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the AUGUST/2019 contract month: 1686 (notices served so far) x 5000 oz + OI for front month of AUGUST (190)- number of notices served upon today (81)x 5000 oz equals 8,975,000 oz of silver standing for the AUGUST contract month.  (DATA CORRECTED FROM YESTERDAY)

WE GAINED A STRONG 81 CONTRACTS  AS THE DEALERS BYPASSED THOSE STANDING TRYING TO GRAB WHATEVER SILVER THEY CAN. WE THUS HAVE AN ADDITIONAL 81 CONTRACTS OR 405,000 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. THIS IS THE TRUE DEFINITION OF QUEUE JUMPING BY THE BANKERS AS THEY SATISFY THEIR URGENT NEEDS OVER THE NEEDS OF INVESTORS.

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 81 notice(s) filed for 405,000 OZ for the AUGUST, 2019 COMEX contract for silver

 

 

 

 

 

 

 

 

 

 

 

 

 

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TODAY’S ESTIMATED SILVER VOLUME: 89,191 CONTRACTS (we had some spreading activity..accumulation//and some short covering

 

CONFIRMED VOLUME FOR YESTERDAY: 122,263 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 122,263 CONTRACTS EQUATES to 611 million  OZ 87.3% OF ANNUAL GLOBAL PRODUCTION OF SILVER..makes sense!!

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

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

 

end

 

 

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NPV for Sprott 

1. Sprott silver fund (PSLV): NAV FALLS TO -..68% ((AUGUST 12/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.31% to NAV (AUGUST 12/2019 )
Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/-.68

(courtesy Sprott/GATA)

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

NAV 14.95 TRADING 14.50/DISCOUNT 3.14

END

And now the Gold inventory at the GLD/

AUGUST 12.2019: WITH GOLD UP $7.30: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY REMAINS AT 839.85 TONNES

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

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

AUGUST 12/2019/ Inventory rests tonight at 839.85 tonnes

 

 

*IN LAST 640 TRADING DAYS: 95.55 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 540- TRADING DAYS: A NET 70,99 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

 

 

 

 

end

 

Now the SLV Inventory/

AUGUST 12/2019: WITH SILVER  UP 11 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY REMAINS AT 365.557 MILLION OZ.

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 12/2019:

 

Inventory 365.557 MILLION OZ

 

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 2.17 and libor 6 month duration 2.05

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

G0LD LENDING RATE: – .12

 

XXXXXXXX

12 Month MM GOFO
+ 1.94%

LIBOR FOR 12 MONTH DURATION: 1.99

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.05

end

 

 

end

 

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

Gold Surges To $1,512 At Open In Asia, Falls To $1,488 At Open In London, Then Moves Over $1,500 Again

* Gold up nearly 6% so far in August after 3% gain last week

* Gold futures traders increase net longs in COMEX gold

* Volatile trading overnight saw gold go higher, lower and then higher again as gold seeks to consolidate at $1,500/oz (see gold in yellow in chart above)

NEWS & COMMENTARY

Gold gains as trade concerns weigh on global markets

Gold near $1,500 as trade tensions and recession worries linger

India is a step closer to first gold exchange

Goldman Sachs economists say fears rise that U.S.-China trade war leading to recession

We’re All Currency Manipulators Now – Stockman

More Disinformation About Gold

Investors are bullish on gold amidst $15 trillion in negative yield debt and currency, economic uncertainty

Don’t buy gold until it reaches this level, Piper Jaffray technician says

Gold Rally To Continue

Listen and Watch Jim Rogers Interview Here

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

09-Aug-19 1503.50 1497.70, 1242.19 1240.99 & 1342.02 1338.05
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

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ii) Important gold commentaries courtesy of GATA/Chris Powell

In essence the big manipulator of currencies etc is the uSA not China

(Marsh/Sobel/GATA)

David Marsh and Mark Sobel: Foolhardy to cry manipulation about yuan

 Section: 

11:44a ET Saturday, August 10, 2019

Dear Friend of GATA and Gold:

In an interview posted this week, two officials of the Official Monetary and Financial Institutions Forum, a London-based organization cozy with central banks, note the irony of the United States’ designation of China as a currency manipulator.

It’s not the irony that the United States, not China, long has been the biggest currency manipulator around, as GATA has been saying for close to 20 years and as former U.S. budget director David Stockman noted this week:

http://www.gata.org/node/19335

Instead the OMFIF officials note that the currency manipulator designation is ironic because China long had been manipulating its currency, the yuan, upward, above market valuation, and was sanctioned by the United States only when it began to let market forces push its currency down a little.

The interview is an exchange between OMFIF’s chairman and co-founder, David Marsh, and its U.S. chairman, Mark Sobel. It’s headlined “Foolhardy to Cry Manipulation” and it’s posted at the OMFIF internet site here:

https://www.omfif.org/analysis/commentary/2019/august/foolhardy-to-cry-m…

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/16

…END

It is about time:  India is now a step closer to having it’s first gold exchange

(London’s Financial Times))

India is a step closer to first gold exchange

 Section: 

By Benjamin Parkin and Henry Sanderson
Financial Times, London
Sunday, August 11, 2019

India’s long-frustrated hopes to build a regulated and transparent gold market are closer to reality after global banks and trade groups submitted a blueprint to the government to set up the first physical gold exchange in the world’s second-largest consumer market.

India last year said it planned to create a spot gold exchange, inspired by neighbouring China’s highly successful Shanghai Gold Exchange. Banks including JPMorgan Chase, Standard Chartered, and State Bank of India, along with the World Gold Council, submitted the blueprint this month after consultations with the government.

… 

Gold jewellery is ubiquitous across the economic spectrum in India, featuring prominently in everything from religious festivals to weddings. With historically limited access to banks, a family’s jewellery collection serves as a de-facto savings account for many in the country.

But India, which buys about 800 tonnes of gold a year, lacks a centralized forum for physical trading or a national benchmark price. This has sparked concerns about price transparency and quality of the gold in the trade, and limited India’s ability to influence global prices. …

… For the remainder of the report:

https://www.ft.com/content/935b6c32-ba81-11e9-8a88-aa6628ac896c

* * *

END

USAWatchdog, Greg Hunter interviews Bill Murphy on the gold/silver suppression

(GATA/Greg Hunter/USAWatchdog/zerohedge)

USA Watchdog interviews GATA Chairman Murphy and Zero Hedge picks it up

 Section: 

5:16p ET Sunday, August 11, 2019

Dear Friend of GATA and Gold:

GATA Chairman Bill Murphy, interviewed today by USA Watchdog’s Greg Hunter, details how the long-time gold price suppression policy of central banks is starting to fail in the face of physical demand. But Murphy adds that silver’s price has been even more suppressed and may have more potential for a sharp rise.

The monetary metals, Murphy says, will be supported by the inability of central banks to do anything but knock interest rates lower and undertake more asset purchases to support a financial system that is far too indebted.

The interview is 28 minutes long and can be viewed at USA Watchdog here:

https://usawatchdog.com/gold-at-all-time-highs-in-73-countries-bill-murp…

Thanks much to Zero Hedge for picking it up for its worldwide audience:

https://www.zerohedge.com/news/2019-08-11/everything-has-changed-gold-al…

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

END

iii) Other physical stories:

We have been highlighting to you on several occasions, China’s attempt to hoard gold and oil. It seems that they are now eager to hoard food and other commodities in anticipation of a global collapse

(Michael Snyder)

Is China Hoarding Food, Gold, & Other Commodities In Anticipation Of A Global Collapse?

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

Does China believe that we are on the verge of a major global crisis?  The communist Chinese government has always been very big into planning, and it appears that they have decided that now is the time to hoard food, gold and other commodities. 

Of course in recent days the fact that China is completely cutting off U.S. agricultural imports has made headlines all over the globe, but at the same time China is dramatically increasing the amount of food that it is importing from the rest of the world.  The end result is actually a substantial surge in Chinese imports, and this is starting to show up in the official numbers.  For example, we just learned that Chinese soybean imports in July were actually up 8 percent compared to last year…

 

China’s soybean imports in July rose 8% from a year earlier, to their highest level in almost a year, customs data showed on Thursday, as importers increased their purchases of Brazilian beans on higher crush margins.

As I discussed the other day, China had already been drastically reducing soybean imports from the United States even before this recent announcement that U.S. agricultural imports were being cut off completely.  So American farmers were definitely not benefiting from this Chinese import boom, and now that China has decided not to buy any of our crops it is going to be a  “devastating blow” for our farmers…

With China officially pulling out of buying U.S. agricultural products, American farmers are losing one of their biggest customers. It could be a devastating blow in an already tough year for crops and commodity prices. It may also dent U.S. gross domestic product and hurt companies like Deere, whose business is directly tied to farming in the Heartland.

“Sales have already been lower this crop year because of the existing tariffs. If we went all the way to no China exports whatsoever, that would of course result in even larger market and price impacts,” said Pat Westhoff, director of the Food and Agricultural Policy Research Institute at the University of Missouri. “Cutting China completely out of the market would be a very big deal.”

Needless to say, China has had to turn to other sources to supply their needs, and last month we learned that China had decided to substantially increase wheat and soybean imports from Russia

China has approved wheat imports from the Russian region of Kurgan, the Chinese customs office said on Friday, bringing Russia a step closer to its goal of dramatically increasing grain exports.

It also approved soybean imports from all parts of Russia, the General Administration of Customs said in a separate statement on its website, having all but halted U.S. soy imports as the trade dispute between Beijing and Washington deepened.

This is yet another sign that Russia and China are drawing closer, and this is something that we have been anticipating.

Meanwhile, China is also hoarding gold.  In fact, July was the eighth month in a row in which the Chinese increased their reserves

China bought nearly 10 tons of gold in July, marking the eighth consecutive month the country increased its reserves, Bloomberg reported Wednesday morning.

The purchase is another signal from China that it’s gearing up for a prolonged trade conflict with the US. Gold serves as a historic safe-haven investment, and its price typically rises when markets and other currencies see increased volatility or prolonged weakness.

In addition, Bloomberg is reporting that Chinese commodity purchases of all types were very, very strong in July…

Commodity purchases by China rebounded strongly in July. Imports of soy to coal and crude oil gained, signaling demand in the world’s biggest buyer remains solid even as a trade spat with the U.S. escalates.

So why are the Chinese suddenly stocking up on everything?

Well, the truth is that the answer to that question is quite obvious.  The trade war between the United States and China is rapidly escalating, war in the Middle East could erupt at any time, the global economy has been steadily slowing down, crops are failing all over the planet, and everywhere we look we seem to see rising political instability.

In fact, we even see it in China’s own backyard.  After weeks of unprecedented political protests in Hong Kong, it looks like we could be right on the verge of a brutal crackdown.  The following comes from the New York Post

After eight weeks of huge Hong Kong street protests against Beijing’s rule, the People’s Republic is massing police and soldiers just across the border. Message: If the protesters don’t quit, a bloodbath is coming.

Beijing has also started denouncing the protests as the work of American provocateurs. That’s so the regime can paint its Tiananmen Square-style crackdown as a battle against “foreign influence,” not a smashing of Chinese people who decided all on their own that they’d rather be free.

The relative stability that we have been enjoying for the past several years is ending, and it appears that the months ahead could potentially be quite chaotic.

Normally I would never suggest that anyone should emulate the Chinese government, but in this case they appear to be doing the wise thing.  Now is the time to get prepared for what is coming, because the road ahead promises to be quite tumultuous.

Most people don’t realize it, but U.S. relations with China have already passed the point of no return.  Things are going to become increasingly tense between our two nations, and that is going to have very serious implications for all of us.

END

Tom Luongo is not necessarily a gold or silver bug.  However he now comments that there are big signals that suggest a big upward movement in these two precious metals

(Tom Luongo)

 

 

Luongo: Big Signals From Gold And Silver

Authored by Tom Luongo,

After nearly eight years of torment, gold and silver are back.  The global political picture is spinning out of control quickly.  And the precious metals are here to tell us just how quickly.

Before I get to the charts, however, I think it’s important we review everything that happened this week just to get some context.

Last weekend two gruesome murder sprees were committed in El Paso, Texas and Dayton, Ohio.  Both shooters apparently radicalized by the current political climate. The usual suspects used these events to call for gun control, pre-crime prevention straight out of a Philip K. Dick novel while blaming them on the tyranny of white people and Donald Trump’s racism.

Then on Monday morning to the news India revoked Article 370 of their constitution, reorganizing Kashmir & Jammu and putting the entire area on a lockdown so complete many there don’t know what happened.

Protests in Hong Kong continued into their third week as the U.S. is caught openly working with protest organizers and castigates by China.

Later that same day Donald Trump finally fulfills a Republican dream of labeling China a ‘currency manipulator’ because investors properly responded to his installing tariffs on the rest of China’s imports to the U.S.
Markets flopped all week.  On by Wednesday morning, oil had broken below its near-term term to break its bull market run.

By Wednesday Italian Interior Minister and leader of Lega, Matteo Salvini called for the end of the coalition government, just thirteen months old, with Five Star Movement.  The ramifications of this are immense.

The Italian Deep State whom Salvini is fighting at every turn, along with the European Union, has control over the government which he supposedly leads.  For now the Troika of Technocrats installed above Salvini in Rome will drag out calling new elections because as bad as the current government is, with Italian polls showing Salvini likely to win an outright majority in Parliament, this is as good as it gets for them.

For the capital markets the situation is as follows:

As long as it looks like Salvini will not get his new election the markets will err on the side of stability. The euro will continue to levitate just above the breakdown line at $1.11 despite a rising dollar and yen and deteriorating financial and economic conditions.
But once the reality sets in, only then will the pressure mount to the point of no return. The same is true of Boris Johnson’s fronting to the world he’s prepared for a no-deal Brexit. Markets want to believe that there’s a compromise because “cooler heads” usually prevail.
But what happens when they don’t?

The Italian debt markets are a complete fantasy. They have been for years but this year they went from urban legend to full-blown fairy tale.

The closer we get to October the higher the odds of a political spasm across the EU.

All of this leads back to a post I wrote speculating that entrenched interests blew up decades-old arrangements because there are too many threats mounting geopolitically for the tastes of The Davos Crowd.

The more I think about it the more Monday was some form of geopolitical coup attempt. The multiple annoyances coming from the Trump administration are one thing. But doing so at the same time the Indian government took the dramatic step to reorganize Kashmir/Jammu using the pretext of recent terrorism and the ongoing riots in Hong Kong to foment a color revolution there is irresponsible.

And that has the fingerprints of someone else.

We now know who.

The same people who killed Jeffrey Epstein in prison.  They are all the same folks.  And it doesn’t matter who any of us, personally, think is behind all of this because the truth is, we’re all partially right.

Who killed Jeffrey Epstein will be foisted off as some form of karmic justice, but it smells too bad this time.  And the fallout from all of these events points to one thing and one thing only, in the grand scheme of things.
Chaos.

And markets hate chaos. 

Chaos is messy.  Killing Epstein this brazenly is a sign of desperation.  The markets will wake up tomorrow not safe in the knowledge that the political elite are protected from what this man knew but scared at the implications for long-term political and societal collapse.

And that’s why gold and silver put in weeks to remember.  And why what happened this week is showing up on longer-term price charts as something very different.

Let’s start with gold and a look at the quarterly data.

The post-Brexit vote high of $1375 has defined the gold market for more than three years.  But it is even more significant than that.  That region between $1375 and $1434 cast a pall over the market going back to the breakdown in 2013.

A formation this big has built up a tremendous amount of energy.  It’s more than enough to eclipse the all-time high of $1911 and go beyond that.  Gold is the peoples’ hedge against government run amok. 

At home we have Trump fighting with the Fed.  Trump fighting with China, the EU, Venzuela, Iran, Russia while fending off domestic attacks built on a foundation made of equal parts fear, loathing and basic corruption.

Every day more people pull back from this show and ask themselves, “What should I do now?” That’s part of where this energy comes from.  It’s been building for years.

And enough people are saying to them the same thing, “Buy gold.”  And, slowly the worm turns.  Slowly when I tell people this they don’t look at my like I’m a lunatic.

Gold cleared a major hurdle in June.  It was a big deal.  But to see it immediately follow through into August pushing above $1500 is a signal things are accelerating.

Which brings me to silver.  Silver has been lagging behind gold and it’s been used by skeptics to say that gold’s bull should be questioned.

This week silver put those issues to bed.  While still not out of its bear market, the explosive move in silver is enough to make even the most jaded observer take notice.

The big three-year downtrend line in silver was broken last week with the move back to the $16.60 area.  But it was this week’s move above that near-term resistance point to challenge the May 2018 high at $17.34 that is the signal.

From here I don’t expect the fireworks to continue.  Consolidation of these gains is likely if ‘cooler heads prevail’ and the news cycle slows own.  But what is clear is that sentiment in these crucial markets has changed and the central banks’ jawboning their way through the political minefields no longer has the same effect it used to.

Chaos, once it’s unleashed, is impossible to control.

When pols talk and no one listens what do you think happens next? 

*  *  *

Join my Patreon if you want help surviving the chaos. Install Brave if you want to stay informed about it.

END
Chinese demand seems down by a full 10% but I do not think it is a lack of demand but instead it is a lack of supply coming from the west
(Lawrie Williams)
LAWRIE WILLIAMS: Chinese 2019 gold demand still slipping but don’t panicPerhaps the U.S.-instigated trade war is beginning to bite with the Chinese consumer. As readers of sharpspixley.com will be aware, we measure Chinese gold demand China is still the world’s largest gold consumer) by the reported gold withdrawal figures from the Shanghai Gold Exchange (SGE). This is a consistent measure reported monthly by the SGE, so does provide comparative figures direct from source rather than estimates of consumption from the major precious metals consultancies, which seem to hugely underestimate known gold flows (published gold import figures from major sources) into the Middle Kingdom plus the nation’s own production. The latest monthly figures for the past three years are set out in the table below and suggest that Chinese gold demand this year will be substantially less than iun the past couple of years – but perhaps more importantly the projected annual total will be the lowest for five years, as we reported just over a month ago on the releas of the June withdrawal figures by the SGE.Table: SGE Monthly Gold Withdrawals 2017-2019 (Tonnes)Table: SGE Monthly Gold Withdrawals 2017- 2019 (Tonnes)

Month 2019 2018 2017 % change 2018-2019 % change 2017-2019
January 218.54 223.58 184.100 -2.30% 18.51%
February*   99.77 118.42 148.24 -15.75% -32.70%
March  218.03 192.61 192.25  +13.19% +13.100%
April  151.89 212.64 165.78  -28.100%  -8.38%
May  123.11 150.58 138.08  -18.24%  -10.84%
June  107.45 140.59 155.51  -23.100% -30.87%
July  129.33 137.100 1000.71  -5.88% – 10.63%
August 190.59 161.100

September 188.12 214.24

October* 142.94 151.54

November 179.08 189.1

December 178.04 185.21

Year to date 1048.12 1175.83 1128.82 -10.86%  -7.15%
Full Year   2,054.54 2,030.48

 

 

Source:  Shanghai Gold Exchange.  Lawrieongold.com

* Months which include week long New Year and Golden Week holiday periods when the SGE remains closed

Source: Shanghai Gold Exchange. Lawrieongold.com

* Months which include week long New Year and Golden Week holiday periods when the SGE remains closed

On the basis of the year to date figures, full year Chinese gold demand, as measured by SGE withdrawals, may struggle to reach 1,800 tonnes as compared with over 2,000 tonnes in 2017 and 2018 – and in particular with the record annual figure in 2015 where full year withdrawals totalled around 2,600 tonnes. We speculated a month ago that the assessed drop in Chinese gold demand, coupled with an apparent continuing downturn in the annual Chinese growth percentage might be expected to be a positive factor in the ongoing trade discussions between the U.S. and China but it seems there has been little progress here – indeed trade tensions appear to have escalated with President Trump apparently imposing tariffs on another $3 billion worth of Chinese imports, while the Chinese have apparently allowed the yuan’s currency parity with the dollar to slip further to over 7 – an apparent U.S. ‘line in the sand’. While the tariff impositions may well be beginning to hurt the Chinese economy, it is also adversely impacting that of the U.S. with higher prices for U.S. manufactured goods which rely on imported Chinese components becoming more expensive. The 5.5% fall in the dollar/yuan parity since April will also be mitigating the effects of the Trump-imposed tariffs.

Despite the apparent disadvantage to China represented by the big trade imbalance in China’s favour, which theoretically should give the U.S. a ‘trade war’ advantage, President Trump is a businessman who believes that financial advantage is the be-all and end-all in monetary trade disputes. But China is basically a Communist-led nation where economic advantage may well take second place to a long-term global growth plan. It is also an Asian nation where ‘saving face’ may take priority over a purely monetary agenda. Trade disputes thus are not necessarily subject to like with like agendas and President Trump may well have substantially over- estimated the likelihood of China capitulating to his demands, whatever the economic consequences.

However, as we have pointed out beforehand in this column, although a fall-off in Chinese demand might represent a negative for gold’s supply/demand balance, it is being offset by a pickup in demand elsewhere in the world, increasing gold accumulations by Central Banks and inflows of gold into the world’s gold ETFs suggesting a return of institutional gold demand into the asset class. This has shown up in a big surge in the gold price over the past few weeks. It may not have been allowed to end the week above the psychological $1,500 level by those who wish to control the price, but higher futures prices suggest that the $1,500 barrier may be breached permanently in the weeks – or even days – ahead. General equities may have reached record highs, but markets seem to be increasingly nervous which bodes well for increasing safe haven uptake. These are indeed interesting times in the markets. We wait with bated breath to see how it will all pan out!

10 Aug 2019

-END-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0588/ 

 

//OFFSHORE YUAN:  7.1022  VERY DANGEROUS  /shanghai bourse CLOSED UP 40.24 POINTS OR 1.45%

HANG SANG CLOSED DOWN 114.58 POINTS OR 0.41%

 

2. Nikkei closed UP 91.47 POINTS OR 0.44%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index UP TO 97.50/Euro FALLS TO 1.1191

3b Japan 10 year bond yield: FALLS TO. –.22/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 105.08/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 54.00 and Brent: 58.10

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 DOWN to 1.76% /SPAIN 10 YR BOND YIELD DOWN TO 0.24%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 2.37: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield RISES TO : 2.15

3k Gold at $1507.00 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) 65.64

3m oil into the 54 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 105.08 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 .9719 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0877 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 1.68% early this morning. Thirty year rate at 2.20%

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

6.  TURKISH LIRA:  UP  TO 5.5673..

US Futures, European Stocks Tumble As Hong Kong Protests Boil Over

The new week in global stock markets started off well enough, largely thanks to China whose central bank weakened the yuan’s daily fixing for an eighth day, down to 7.0211, however once again stronger than the 20-trader Bloomberg consensus estimate of 7.029%, which in turn sent the USDCNH sliding from 7.108 to below 7.09, and helped prop up Chinese stocks which closed up 1.45%.

However, any vestige of optimism quickly fizzled around 4am EDT when the news hit that all flights out of Hong Kong were cancelled on Monday in an unprecedented disruption after thousands of anti-government protesters occupied the airport terminal building. The Airport Authority blamed the cancellations from 4pm local time on the protests which had “seriously disrupted” operations, with masses of demonstrators preventing passengers from checking in or clearing airport security.

 

And what really spooked traders was a video clip from China’s nationalist, and state-owned tabloid Global Times, showing Chinese People’s Liberation Army forces building up just across the border with HK, in Senzhen, ahead of what appears to be a “apparent large-scale exercise,” according to the Global Times.

al Times.

 

“Numerous” armored personnel carriers, trucks and other vehicle

“Numerous” armored personnel carriers, trucks and other vehicles of the paramilitary police were seen heading towards Shenzhen over the weekend. That means the long-awaited military intervention from the mainland could be just around the corner – something that the Hong Kong people have condemned. At the same time, a Chinese official said the city was at a “critical juncture” and that there were signs of “terrorism.”

The result was a quick, and painful reversal in sentiment , which sent US equity futures below 2900 and global stocks sliding.

 

The change in mood wiped out the Stoxx Europe 600 Index’s jump of as much as 1%. Stocks had earlier increased in Shanghai and edged higher in South Korea and Sydney, though Hong Kong shares dropped and many other markets across Asia were shut for a holiday. Overall, Asian stocks fluctuated in thin trading, with markets in at least six countries shut. Declines in material producers countered a health care rally. Equity markets in Japan, Singapore, India, Thailand, Malaysia and Philippines were closed for holidays. The Shanghai Composite Index climbed 1.5% for its biggest advance in six weeks, supported by Kweichow Moutai and large financial firms; Bloomberg reported that Chinese policy makers are holding back from rolling out the big guns of monetary stimulus, keeping options in reserve. Hong Kong’s Hang Seng Index dropped 0.4%, as authorities canceled Monday’s remaining flights amid a mass protest at the city’s airport. Cathay Pacific Airways sank 4.9% to a 10-year low.

Safety remained the name of the game. The FX safe haven, the Japanese yen, hit its highest in nearly a year and a half at 105.32 yen against the dollar as it strengthened versus all its major peers as investors sought the safety of havens; Scandinavian currencies fell by the most versus the dollar in a broad risk-off move. The pound got a boost from the latest reports on U.K. lawmakers’ plans to prevent a no-deal Brexit, with MPs said to be drawing up plans to force the Prime Minister to request a last minute Brexit extension. The Swiss franc gained versus the euro even as SNB sight deposits jumped the most in more than two years last week, suggesting intervention. The South Korean won extended declines as data signaled exports are set to drop as the impact of the U.S.-China trade spat spreads. Argentina’s euro-denominated bonds slid after President Mauricio Macri’s poor showing in primary elections on Sunday. The Mexican peso slumped.

“Risk indicators and global markets have become more shaky and the yen is reflecting those concerns, and safe-haven shelters like the yen and the Swiss franc should continue to benefit,” said Commerzbank currency strategist Esther Reichelt.

The story was the same in bond markets, where the demand for safety was unrelenting, and sent the 10Y US Treasury yield sliding to 1.68%, approaching the lowest levels of the year. A rally in Italy’s debt gave it an extra boost after Fitch kept country’s rating steady despite the prospect of snap elections in the euro zone’s third biggest economy now looming. There were signs that League leader Matteo Salvini’s call for those snap elections was facing mounting resistance from other parties whose support will be needed for the plan to succeed.

“Fitch kept Italy’s rating unchanged and some market participants may be betting that a snap election could be delayed,” said DZ Bank rates strategist Sebastian Fellechner, referring to the fall in yields.

Economists are also watching for a batch of global data this week. Goldman Sachs became the latest to cut its U.S. growth forecast at the weekend, warning that a U.S. China trade deal now looked unlikely before the 2020 U.S. presidential election.

As a result of the ongoing uncertainty, traders have increased bets for central bank easing in recent weeks as the U.S. with markets now expecting 4 rate cuts by December 2020, although as Andrew Sheets, chief cross asset strategist at Morgan Stanley, said over the weekend, “we remain cautious, as we believe that a number of challenges remain… among them, the risk that high policy expectations make disappointment more likely, and that even if those aggressive expectations are met, easing isn’t expected to improve growth or inflation materially.”

In commodities, oil prices dipped on growth and trade worries, having risen sharply on Friday on a drop in European inventories and production cuts by the Organization of the Petroleum Exporting Countries. Brent crude futures were at $58.16 a barrel by 0829 GMT, down 37 cents from their previous settlement. WTI futures were at $53.89 per barrel, down 61 cents from their last close. Both benchmarks fell last week, with Brent losing more than 5% and WTI falling about 2%.

“The market is facing a buyers’ strike,” said Michael Tran, commodity strategist at RBC Capital Markets, noting the low level of investors’ long positions betting on higher prices. “Despite the laundry list of disruptions and additional barrels at risk, investor length is currently near a multi-year low.”

Finally, with risk solidly off, gold surged, rising solidly above $1500, and dragging silver, if not bitcoin, along for the ride.

 

 

Market Snapshot

  • S&P 500 futures down 0.5% to 2,905.75
  • STOXX Europe 600 up 0.2% to 372.32
  • MXAP down 0.08% to 152.14
  • MXAPJ down 0.3% to 488.80
  • Nikkei up 0.4% to 20,684.82
  • Topix up 0.4% to 1,503.84
  • Hang Seng Index down 0.4% to 25,824.72
  • Shanghai Composite up 1.5% to 2,814.99
  • Sensex up 0.7% to 37,581.91
  • Australia S&P/ASX 200 up 0.09% to 6,590.27
  • Kospi up 0.2% to 1,942.29
  • German 10Y yield fell 1.1 bps to -0.587%
  • Euro down 0.3% to $1.1169
  • Brent Futures down 0.7% to $58.14/bbl
  • Italian 10Y yield rose 26.7 bps to 1.449%
  • Spanish 10Y yield fell 2.9 bps to 0.232%
  • Brent Futures down 1% to $57.92/bbl
  • Gold spot up 0.4% to $1,503.00
  • U.S. Dollar Index up 0.2% to 97.70

Top Overnight News from Bloomberg

  • Parliament leaders in Italy will meet on Monday to decide when Prime Minister Giuseppe Conte will have to face a no-confidence vote as the anti-establishment Five Star Movement and the center-left Democratic Party consider an alliance
  • Chinese policy makers are holding back from rolling out the big guns of monetary stimulus, keeping options in reserve as the trade standoff with the U.S. risks morphing into a global currency war
  • New Zealand’s Treasury Department has identified a lower bound for the official cash rate as it studies the monetary policies that could be used to combat an economic downturn.
  • Argentina’s President Mauricio Macri unexpectedly lost a primary vote by a landslide, foreshadowing a defeat in October’s presidential election and a possible return to the policies of his predecessor, Cristina Kirchner
  • Since becoming U.K. prime minister less than three weeks ago, Boris Johnson has announced spending pledges at a rate of about 2b pounds ($2.4b) per week, fueling speculation he’s planning for an early election
  • The Times reports some U.K. lawmakers are drawing up plans to compel PM Johnson to request a last-minute Brexit extension from the European Union
  • Sharp and Foxconn Industrial Internet are increasing production in Vietnam before U.S.’s plan to impose duties on all remaining imports from China from September, according to Taipei-based Economic Daily News
  • White House trade adviser Peter Navarro tells CNBC he doesn’t want China to devalue their currency “but they’re going to and we’re going to take strong action against them”
  • Bullish bets on gold have hit a three-year high amid concerns of a currency war, and Goldman and Citi see prices climbing further
  • The anti-establishment Five Star Movement and the center- left Democratic Party are ready to consider an alliance aimed at postponing early elections, according to several Italian media outlets
  • Ratings: Italy affirmed at BBB by Fitch, outlook maintained at negative; Portugal affirmed at Baa3 by Moody’s, outlook upgraded to positive from stable

Asian equity markets began the week with a cautious tone amid several market closures and after last Friday’s losses on Wall St. due to ongoing trade uncertainty. ASX 200 (+0.1%) was lower with the index weighed by weakness in commodity names including profit taking in gold miners and as iron ore prices resumed an aggressive pullback from last month’s record levels, although the losses in the index were stemmed due to resilience in the top weighted financials and as JB Hi-Fi led the outperformance in the Consumer Discretionary sector post-earnings. Elsewhere, Hang Seng (-0.4%) kept afloat and Shanghai Comp. (+1.5%) was underpinned after the PBoC set a firmer than expected reference rate and injected liquidity through reverse repos for the 1st time in 2 weeks. In addition, strength was seen in brokerages after China instructed a revision to margin financing and margin trading regulations, although trade concerns lingered following President Trump’s recent suggestion that talks with China may be cancelled. As a reminder, Japan, Singapore and India were among the numerous holiday closures across the region and Middle East.

Top Asian News

  • Cathay Pacific Shares Tumble to a 10-Year Low
  • China Says H.K. at ‘Critical Juncture’, Has Signs of ‘Terrorism’
  • China Says Its Own Cryptocurrency Is ’Close’ to Release

European equities have given up the gain seen at the open and now trade mixed [Eurostoxx 50 +0.1% vs. +0.9% at the open], which follows a cautious handover from the Asia-Pac session whilst Japanese markets were closed on holiday.  The bout of risk-aversion coincided with reports of escalating violence in Hong Kong, with its airport cancelling all flights as protestors stage a sit-in, whilst separate reports noted that People’s Armed Police are reportedly gathering and heading towards Shenzhen (a city bordering Hong Kong) in advance of apparent large scale exercises. Back to Europe, bourses are mixed with some mild underperformance in the FTSE 100 as a firmer Sterling weighs on exporters. Sectors are mixed with no clear outperformer/laggard. In terms of individual movers: Osram Licht (+9.9%) shares spiked to the top of the pan-European index after AMS (-9.5%) offered EUR 4.1bln to acquire the Co. The bid is 10% higher than that of the Bain & Carlyle consortium; Osram have said they will review the offer. On the flip side, Anglo American (-1.4%) and ThyssenKrupp (-2.8%) rest near the foot of the Stoxx 600 amid the respective declines in copper and iron ore prices. Finally, luxury good makers also bear the brunt of the US/China trade spat, LVMH (-2.6%), Kering (-1.4%); with the Global Times editor noting, over the weekend, that as long as the US forces a deal on China with maximum pressure, then “there will never be a deal”.

Top European News

  • Thomas Cook Drops as Emergency Bailout Will Exceed $1 Billion
  • Italy’s Parliament Leaders to Meet as Sworn Enemies Eye Tie-Up
  • Italian Bonds Rally After Fitch Keeps Credit Rating on Hold
  • Burford Says Evidence Points to Market Manipulation of Shares

In FX, the Euro was not the worst G10 performer, but one of the major movers amidst all round selling that appeared to start vs Sterling as Eur/Gbp recoiled from circa 0.9325 towards 0.9250. A corporate order has been touted, but Eur/Jpy also crossed 118.00 and seemed to trip stops and technical levels on its way down to almost 117.50. Meanwhile, the single currency succumbed to accelerated declines through 1.1200 vs the Dollar and alongside ongoing Italian political jitters chart points may also have exacerbated the fall as the 21 DMA at 1.1176 gave way and the headline pair has struggled to sustain rebounds beyond Fib resistance at 1.1220 in recent sessions. However, the 10 DMA at 1.1161 is holding in for now at least.

  • AUD/NZD/NOK/SEK – A broad deterioration or erosion of risk sentiment against the backdrop of heightened unrest in Hong Kong and the ongoing Yuan depreciation (Usd/Cnh now probing 7.1100) has hit the Aussie and Kiwi especially hard, with Aud/Usd down to around 0.6750 and Nzd/Usd under 0.6450. Note also, dovish Central Bank vibes continue to undermine the Antipodean currencies with research from the NZ Treasury overnight raising eyebrows given -0.35% tagged for the OCR in a crisis situation. Elsewhere, the Scandi Crowns are not deriving any indirect support from the aforementioned Euro weakness or relatively hawkish monetary policy stances ahead of Thursday’s Norges Bank meeting, as Eur/Nok and Eur/Sek rebound to just over 9.9900 and 10.7300 respectively, with the former also propelled by another downturn in oil prices.
  • JPY/GBP – The Yen is strong across the board and back in demand as a safe-haven, with Usd/Jpy down to 105.15 and eyeing 105.00 ahead of flash crash lows beneath the big figure, but perhaps wary of decent option expiry interest at the round number (1.6 bn) that could provide support. Meanwhile, the Pound is also bid on the cross flow noted above, and with Cable holding firm between 1.2015-75 parameters after reports that a group of UK MPs are trying to ensure another Brextension rather than risk PM Johnson leading the country out of the EU on October 31 with no deal.
  • EM – Widespread losses vs a mostly buoyant Buck as the DXY continues to pivot 97.500, but some protection for the Rouble from risk aversion and soft Brent via Fitch upgrading Russia to BBB last Friday. However, Usd/Rub is still firmer within a 65.2535-5700 range.

In commodities, WTI and Brent futures have succumbed to the firmer Dollar and the risk averse tone around the market thus far. The former breached 54/bbl to the downside whilst the latter hovers around the 58/bbl handle. Newsflow has been relatively light for the complex, although the Kuwaiti oil minister stated that the country is committed to fully implement OPEC’s output pacts and noted that fears concerning a global slowdown are “exaggerated”. Analysts at ING see stronger non-OPEC supply growth in 2020 which will subsequently lead to OEPC taking further action or face the risk of further declines in prices. Elsewhere, Gold prices are choppy and ultimately unchanged on the day as the yellow metal balances a cautious risk tone against a firmer Buck. Spot Gold now hovers around the 1500/oz level (having hit a current intraday low of 1487.50/oz).  Meanwhile, copper prices fell back below the 2.60/lb level as a firmer Greenback and fragile risk tone weighed on the red metal. Finally, Dalian iron ore futures fell to a two-month low, notching its 8th straight session of losses amid the ongoing supply worries and a bleak demand outlook as China’s top steel-producing province looks to tighten emission requirements.

US Event Calendar

  • 2pm: Monthly Budget Statement, est. $120.0b deficit, prior $76.9b deficit

DB’s Craig Nicol concludes the overnight wrap

It may have been a fairly predictable start to the Premier League season over the weekend – other than Arsenal’s clean sheet – however markets are proving to be anything but predictable in August so far. Risk assets have spent most of it flip-flopping around trade headlines while bond yields have continued a surreal race to the bottom and with the peak summer holiday weeks upon us and liquidity therefore becoming an even bigger issue in theory, the risk is that volatility is here to stay for a while yet.

By the way if you were on holiday last week and wanted a snapshot of the updated crazy world of European bond yields then a few of the highlights last week include long-term mortgage rates in Denmark trading at zero, Austria’s 100y bond trading at a high in points terms of 192 versus 117 at the start of the year, the entire Dutch yield curve trading negative and 10y Spanish and Portuguese bonds trade to within 20bps of 0% at one stage.

Quite incredible. In terms of what to look forward to this week there’s a couple of potentially interesting data releases with the first of those on Tuesday when we get the July CPI release in the US. The consensus expects a +0.2% mom reading for the core however our US economists expect a softer +0.13% mom reading mainly reflecting some unwind of the drivers that drove the strong reading in June. It’s worth noting that markets are still pricing in 63bps of cuts by the Fed this year so it’ll be interesting to see if this data makes much of a dent in that.

We won’t have to wait long for the next interesting data release with a first look at Q2 GDP due in Germany on Wednesday. The consensus is for Germany’s economy to have contracted by -0.1% qoq which would mean it would join Sweden and now the UK – following Friday’s data – with negative Q2 GDP prints and therefore one more consecutive negative quarter away from a technical recession. While we’re on Europe, Italy is creeping back onto everyone’s screens as expectations build of a snap election after the League’s Salvini effectively called time on the fractious coalition government. It’s worth noting that the binding constraint on parliament approving Italy’s budget is December 31st so a government needs to be in place by year-end. The big potential vol risk is that we get an election in mid-October as the Brexit process approaches the end game. So it’s worth keeping an eye on the various rhetoric this week.

Some of the newsflow in the Italian press over the weekend suggests that Five-Star and the Democratic Party are considering what would be an unexpected and somewhat unlikely tie-up in a bid to delay Salvini’s plan to take full control (per Bloomberg). In the meantime, it’s worth noting that parliamentary leaders are due to meet today to set a timetable for the vote of no confidence against PM Conte called by Salvini, however it’s expected that this vote won’t take place until later this month.

There has been little reaction in the euro (+0.07%) to that news, while sentiment more broadly in markets in Asia is a bit mixed with the Shanghai Comp (+0.70%) and Kospi (+0.42%) up, but the Hang Seng (+0.01%) flat and ASX (-0.20%) lagging behind. It’s worth noting that volumes are low however with a number of Asian markets closed for a holiday today including Japan, Singapore, India, Malaysia, Philippines and Thailand. As for FX, the Japanese yen is trading up +0.23% and starting to test the 2018 lows of 104.74 while the Chinese onshore yuan is trading flattish at 7.0622. Elsewhere, futures on the S&P 500 are up +0.18%.

As for the rest of the week ahead we’ve also got US retail sales while the manufacturing and consumer sentiment surveys – including from the NY Fed and Philly Fed – will be worth keeping an eye on as they will be the first of the data releases to incorporate the recent announcement of 10% tariffs on the remainder of imported goods from China. In Europe we’ll also get Germany’s ZEW survey on Tuesday and various data out of the UK over the course of the week including on the labour market, retail sales and inflation. In China we’re also expecting the July activity indicators on Wednesday and credit data at some stage.

Turning to recap last week, there were no shortage of macro stories to drive markets. As discussed above, the surprise move by Italy Deputy PM Salvini to move toward new elections drove a sharp selloff in BTPs, with 10-year yields ending the week +26.4bps higher (+27.2bps Friday), and that despite rallying -16.5bps earlier in the week before the announcement. Italian stocks dropped -3.43% (-2.48% Friday), and Italian bank shares retreated -5.60% (-4.49% Friday).

Away from Italy, core government bond markets rallied sharply, as the US-China trade war escalated and economic data was broadly weaker than expected. Ten-year yields in the US and Germany fell -10.1bps and -8.1bps (+2.7bps and -1.6bps Friday) respectively. Duration opened the week well bid, sparked by the move in the Chinese yuan beyond 7.0 per dollar, in an apparent escalation of the trade war. The US subsequently responded by designating China as a currency manipulator, which could open the door to higher tariffs in future. On the data front, the US non-manufacturing PMI was weak at 53.7 versus expectations for 55.5, while industrial production in Germany (-1.5% mom versus expected -0.5%) and France (-2.3% mom versus -1.2% expected) were both soft. In the UK, the first print for second quarter GDP growth showed a -0.2% qoq contraction compared to consensus forecasts for a flat reading.

Along with the rally in treasuries and bunds, these trends combined to push measures of the US yield curve flatter, with the 2y10y down -3.7bps (flat on Friday) to 9.4bps, its flattest level since June 2007. The 3m10y flattened -2.8bps (+5.1bps Friday) and the Fed’s 18 month forward spread fell -3.2bps (+5.1bps Friday). Brent crude prices fell on concerns over global growth, ending -5.43% lower, though it rebounded on Friday (+2.00%) on reports that Saudi Arabia may cut production.

The S&P 500 retreated -0.46% (-0.66% Friday), though that still represented a strong rebound from the -3.75% trough reached on Monday. Other global equities retreated similarly, with the NASDAQ and DOW down -0.56% and -0.75% (-0.34% and -1.00% Friday) respectively. In Europe, the STOXX 600 fell -1.74% (-0.84% Friday), while indexes in Asia underperformed. The Shanghai Composite was down -3.25% (-0.71% Friday) and the Hang Seng declined -3.64% (-0.69% Friday). Other risk assets were also pressured, with cash HY spreads +28.0bps and +10.4bps wider in the US and Europe (-3.0bps and +2.6bps Friday). EM currencies underperformed, with the South African rand weakening -3.06% (-1.39% Friday) amid continued reports of a potential IMF program. Conversely, safe havens rallied, with the yen +0.85% stronger (+0.36% Friday) and gold touching new six-year highs and ending +3.89% higher (-0.27% Friday).

end

 

3A/ASIAN AFFAIRS

I)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED UP 40.24 POINTS OR 1.45%  //Hang Sang CLOSED DOWN 114.58 POINTS OR 0.44%   /The Nikkei closed UP 91,47 POINTS OR 0.44%//Australia’s all ordinaires CLOSED UP .10%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0588 /Oil UP TO 54.00 dollars per barrel for WTI and 58.10 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0588 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1022 TRADE TALKS STALL//YUAN LEVELS NOW PAST 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

North Korea

North Korea continues to fire short range missiles which according to Trump is permissible’

(zerohedge)

 

Despite “Really Beautiful Letter” To Trump, North Korea’s Kim Test-Fires Missiles Again

Just hours after President Trump expressed optimism about future nuclear talks, citing another letter from North Korean leader Kim Jong Un, Fox News reports that a US official confirms North Korea fired off multiple short-range missiles.

Kim has sent Mr. Trump a number of letters and the two have projected a warm personal relationship. But talks have remained stalled, and North Korea continues to conduct missile tests, which Mr. Trump has played down.

“I think we’ll have another meeting,” Mr. Trump told reporters. “He really wrote a beautiful, three-page – I mean, right from top to bottom – a really beautiful letter.”

 

Source: Bloomberg

But, that patience may well be tested tonight as Fox News’ Lucas Tomlinson reports that, for the fifth time in two weeks, North Korea has tested an increasingly sophisticated, hard-to-track missile system that could wipe out South Korean and Japanese cities — not to mention U.S. forces based in both countries.

U.S. official confirms North Korea fired off multiple short-range missiles. It’s not immediately clear how many missiles were fired from North Korea’s east coast into Sea of Japan (East Sea).

5th missile test by North Korean forces in past two weeks.”

As Bloomberg reports, the president and his team contend that diplomacy with North Korea remains on track, thanks in part to his personal rapport with Kim, claiming that the North Korean leader has kept his word by holding off from testing a nuclear weapon or launching longer-range missiles capable of reaching the U.S. mainland.

National Security Advisor John Bolton said this week: “The president’s watching this very, very carefully.”

end

 

b) REPORT ON JAPAN

 

3 C CHINA

Hong Kong/Saturday

Hong Kong police fire tear gas on protesters in the 10th straight week of demonstations

(zerohedge)

Hong Kong Police Fire Tear Gas On Protesters In 10th Week Of Demonstrations

Hong Kong has fallen into violence amid the 10th straight week of protests, as police fire tear gas on thousands of demonstrators donning yellow helmets and black clothing.

 

Protesters throw back tear gas fired by the police in Sham Shui Po district in Hong Kong Sunday. Photo: Anthony Wallace/AFP/Getty Images

Flash mob-style protesters broke off from an earlier approved demonstration, causing police to deploy crowd control measures, according to SCMP.

Olga Wong@Olgawys

Riot police charging at protesters on Park Lane, Tsim Sha Tsui. Credit: SCMP staff

Embedded video

Live feed:

In Causeway Bay, an approved rally at Victoria Park earlier morphed into an illegal march, with anti-government protesters engaging in a stand-off with police in Wan Chai, while in Sham Shui Po, clashes at a police station result in the first tear gas rounds of the day. Meanwhile, in North Point, tensions run high with the local community bracing for confrontations with protesters, while at the airport a third day of a sit-in is under way. 

Locations where rounds of tear gas have rained down on protesters are: Sham Shui Po, Wan Chai, Tsim Sha Tsui and within Kwai Fong MTR station in Kwai Chung. –SCMP

The protests were sparked by outrage over a controversial extradition bill which would have allowed suspects to be transferred to mainland China to face trial. In response, the government shelved the bill – however much like France’s Yellow Vest movement, Hong Kong’s demonstrators have expanded their cause into a general anti-government protest despite Beijing’s dire warnings that a nearby military contingent will use deadlier measures to control the situation. 

Protesters flooded various Mass Transit Railway (MTR) stations on Sunday, some of whom were met with tear gas.

Phila Siu (Bobby)

@phila_siu

About 50 protesters arrived at the North Point MTR station but decided to turn back as they were warned by some protesters that there was a heavy police presence at the MTR exist @SCMPNews

View image on TwitterView image on TwitterView image on Twitter

Wilson Leung 梁允信@WilsonLeungWS

HK Police are no longer interested in just making arrests. They are meting out extrajudicial punishment and exacting violent revenge. This is just one of many sickening scenes. https://twitter.com/joshuawongcf/status/1160570201181544448 

Joshua Wong 黃之鋒

@joshuawongcf

Let us admin HK is a police state. Riot police push down peaceful protestor on the escalator of railway station.

Embedded video

Wilson Leung 梁允信@WilsonLeungWS

Another video from the same metro station (Tai Koo). The riot police is shooting at head level and barely 3 feet away. Huge risk of causing death, and appallingly excessive use of force.

Embedded video

Meanwhile, activist Ventus Lau Wing-hong, who organized two anti-government rallies last month, had his home vandalized and received what he says was a death threat.

Three days of demonstrations at the Hong Kong International Airport are winding down, as protesters gathered in the halls on Friday to try and explain what’s going on to foreigners – passing out handmade postcards and stickers.

Olga Wong@Olgawys

Crowd in the airport’s chanting “stand with Hong Kong/fight for freedom” Credit: SCMP staff

Embedded video

end
Hong Kong/China
Hong kong on edge as Chinese troops gather in southern province of Shenzen.  Hundreds of flights are called over protestor “terrorism”
(zerohedge)

Hong Kong On The Edge: Chinese Troops Gather In Shenzen; 100s Of Flights Cancelled Over Protester “Terrorism”

Protesters flooded Hong Kong’s airport, one of the busiest in the world, on Monday, forcing authorities to cancel more than 100 flights as demonstrators expressed their anger over the violent police response to protests the night before.

Video of the airport terminal showed thick crowds chanting protest slogans.

Alex Macheras

@AlexInAir

Breaking: Hong Kong airport says all flights are now cancelled because of protests.

Embedded video

Joshua Potash 🆘@JoshuaPotash

This is the Hong Kong airport, again.

Flights have been canceled, and China has reportedly called the protests that have swept Hong Kong terrorism.

But the people will continue to fight for freedom.

Embedded video

Amid the unrest, Cathay Pacific, Hong Kong’s flagship carrier, has reportedly fired two employees and suspended a pilot for participating in the protests. The airline said over the weekend that it would ‘comply with a directive from China’s aviation authority’. According to the FT, Cathay’s move was “the starkest sign yet of Beijing’s growing readiness to make high-profile businesses choose between the protesters and the government. The company’s shares were off more than 4% in recent trade.

More broadly speaking, European equities sold off as the developments in Hong Kong created a risk off mood on a morning that was mostly devoid of data.

Per the NYT, the protesters gathered throughout the day, first filling up the arrival halls, before expanding upstairs to the departure halls. Monday’s protest is a continuation of a three-day peaceful sit-in at the airport which began on Friday. It bore none of the violence that demonstrations on Sunday night had, where police fired tear gas inside a subway station and charged at protesters on an escalator.

Some incoming flights were being diverted to Taiwan.

航空情報 AirPlaneInformation@APInfo_bot

Cathay Pacific Airways flight CX527 from Tokyo NRT to Hong Kong diverted to Kaohsiung due to airport closure. https://twitter.com/APInfo_bot/status/1160844331168624641 

航空情報 AirPlaneInformation@APInfo_bot

<ダイバート/目的地変更発生>
東京・成田発 香港行き
キャセイパシフィック航空 CX527便
香港国際空港 閉鎖のため、
高雄国際空港に向かいました。

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

Noel Tse, a 29-year-old nurse, said she participated in the sit-in at the airport because she thought the police had acted to aggressively on Sunday. “As a member of Hong Kong, this incident is no longer a political issue,” Tse said. “It is a battle between right and wrong.”

But even more ominously, over the border in Shenzen, the Chinese city that lies directly across from Hong Kong, Chinese People’s Liberation Army forces were building up ahead of what appears to be a “apparent large-scale exercise,” according to the Global Times. “Numerous” armored personnel carriers, trucks and other vehicles of the paramilitary police were seen heading towards Shenzhen over the weekend. That means the long-awaited military intervention from the mainland could be just around the corner – something that the Hong Kong people have condemned.

Yang Guang, spokesman from China’s Hong Kong and Macau Affairs Office, said there should be a crackdown on violence in the city, during a briefing.

Though a military conflict in Hong Kong would certainly rattle global markets. Remember what Steve “the Big Short” Eisman said last week. His biggest fear right now are the Hong Kong protests, which he says could endanger any kind of trade deal with China and hurt the global economy. “If things escalate even further in Hong Kong, that would have a real impact back on the global economy.”

END
Global Times shows dramatic video of the Chinese army preparing for a Hong Kong invasion
(zerohedge)

Global Times Shows Dramatic Video Of Chinese Army Preparing For Hong Kong Invasion

The Hong Kong/China feud is going from bad to worse on Monday, when as reported earlier, the Hong Kong airport authority advised all passengers to leave the terminal buildings as soon as possible in an unprecedented disruption after thousands of anti-government protesters occupied the airport terminal building.

Amichai Stein

@AmichaiStein1

: Hong Kong airport authority says all passengers are advised to leave the terminal buildings as soon as possible https://twitter.com/AmichaiStein1/status/1160828603971620864 

Amichai Stein

@AmichaiStein1

BREAKING: Flights cancelled at Hong Kong airport amid protests in terminal building

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

However, what confirmed that as Beijing has been warning for the past week, Hong Kong’s insubordination will no longer be tolerated by Beijing, was a video – complete with dramatic World War III style music – published by the state-owned tabloid Global Times, which showed “The People’s Armed Police have been assembling in Shenzhen, a city bordering Hong Kong, in advance of apparent large-scale exercises.”

And the icing on the cake: CNN’s Will Ripley reporting that Chinese media published a new video of the country’s military run armed police assembling  in the city of Shenzen, which borders Hong Kong, ahead of “large-scale exercises.” As Ripley adds, “Chinese law authorizes the use of the People’s Armed Police (PAP) to “handle riots, unrest, severe violent criminal activities, terrorist attacks and other public safety incidents.”

Will Ripley

@willripleyCNN

Chinese media published a new video of the country’s military run armed police assembling  in the city of Shenzen, which borders Hong Kong, ahead of “large-scale exercises.”

Will Ripley

@willripleyCNN

endChinese law authorizes the use of the People’s Armed Police (PAP) to “handle riots, unrest, severe violent criminal activities, terrorist attacks and other public safety incidents.”

So will China invade Hong Kong and potentially trigger a global war as the west has no choice but to come to the wayward territory’s defense? We will find out, but recall what what Steve “the Big Short” Eisman said last week, who said that his biggest fear right now are the Hong Kong protests, warning that “the people who are protesting are not backing down, the Chinese government doesn’t seem to be backing down, so if cooler heads don’t prevail it’s possible things in Hong Kong could get very ugly” and adding that “That’s actually what I’m worried about the most right now, because every weekend we’ve got this drama where the people of Hong Kong are having protests in the millions and its starting to get very violent.”

 end
Expect the yuan to devalue more and a Chinese bankers warns that Beijing might dump all of its USA treasuries  (which I doubt)
(zerohedge)

Former Chinese Central Banker Warns Beijing May Dump Treasuries In Retaliation

Things started moving very rapidly after President Trump ratcheted up trade friction with China on August 1 by announcing 10% tariffs on the remaining roughly US$300bn of imports from China to the US.

After markets first plunged realizing that the trade war was going to continue well into 2020 – and likely beyond the next presidential election – China initially responded by instructing SOEs to suspend imports of US agricultural products and then allowing the CNY to devalue past the 7.00 level for the first time since 2008, as the trade war became a currency war.

Almost immediately, in response to the CNY devaluation, the US Treasury designated China a currency manipulator for the first time in 25 years under section 3004 of the Omnibus Trade and Competitiveness Act of 1988; the escalation remains open ended with policy makers indicating the potential for further retaliation, although no further tariff or non-tariff actions have yet been specified.

Meanwhile, China’s currency devaluation has resulted in a negative feedback loop, in which higher tariffs lead to more yuan devaluation, leading to even higher tariffs, and even more devaluation, and so on, until some exogenous events breaks this cycle.

It is therefore not at all surprising that markets moved quickly to price in the ratcheting up of US/China trade tension, with the past 5 days resulting in the most violent moves in the stock market this year, with the biggest one day drop of 2019 followed by the most rapid three day rebound YTD. According to an FT analysis, the S&P 500 on Friday morning fell as much as 1.2%, marking the eighth straight session the index traded in an intraday range of more than 1 percentage point. It was the longest streak since a 29-day run that ended on January 10, when the market was convulsed by bouts of sharp selling and subsequent buying.

Yet while US stocks closed the week barely changed, down just 0.5% since last Friday’s close, China was less lucky and in just four trading days following the tariff announcement, Chinese offshore equities tumbled over 6%, Hong Kong equities dropped nearly to the same extent and the regional index fell 5.5%. The relative performance of the other regional markets was in line with their fundamental exposure to the trade factor, with the north Asian markets of Korea and Taiwan falling 3-5%, Australia (which is sensitive to China through commodity exports) declining 4%, and so on, with the ASEAN markets generally giving back 2-3%.

Trade concerns also cascaded through the currency markets, and the focal move was the 2% CNY weakening through the 7.0 mark for the first time in 11 years, which subsequently prompted the US Treasury to designate China a currency manipulator. The Korean won and Indonesian rupiah also declined over 2%, reflecting high macro sensitivity and carry-trade positioning unwind, respectively. The only regional currency to strengthen was the Thai baht.

Finally, as a demonstration of the market’s now dismal view on trade relations, Goldman’s trade deal odds barometer (which was introduced less than two months ago) declined to pricing just a 12% probability of a trade deal compared with the recent post-G20 peak of 25%.

Even 12% may be optimistic, because as Bloomberg reports this morning, now that the trade war has shifted to a currency war, several former Chinese central bankers warned Saturday that there is no end in sight to the conflict between the world’s leading superpowers.

Chen Yuan, former deputy governor of the PBOC, said that the U.S.’s labeling of China as a currency manipulator “signifies the trade war is evolving into a financial war and a currency war,” and policy makers must prepare for long-term conflicts.

The U.S. currency-manipulation charge is part of its trade-war strategy, and it’ll impact China “more deeply and extensively” than the trade differences, Chen said Saturday. While China should try to avoid further expanding the disputes, policy makers must be prepared for long-lasting conflict with the U.S. over the currency.

And in a striking warning from the former central banker, he effectively admitted that dumping US Treasurys is certainly a possible retaliation: “The U.S. believes, in a geopolitical point of view, it’s being contained by China with China’s holding of its sovereign bonds,” Chen said,. “That means the U.S. is not completely without weakness.”

He also said that China should work to increase the use of the yuan in global trade such as the purchase of commodities.

Speaking at the same venue – the China Finance 40 meeting in Yichun, Heilongjiang – former PBOC Governor Zhou Xiaochuan said that conflicts with the U.S. could expand from the trade front into other areas, including politics, military and technology. He called for efforts to improve the yuan’s global role to deal with the challenges of a dollar-denominated financial system. Of course, the conflict that is most concerning is the military one. Luckily, that barrier has not been crossed yet, but it is only a matter of time before the US and China clash somewhere in the South China Sea with deadly consequences.

Sure enough, one of the other PBOC officials at the meeting signaled that tensions with the U.S. could increase. Zhu Jun, director of the PBOC’s international department, said “more ensuing measures are likely coming.” She didn’t elaborate.

Finally, ensuing that “more measures are coming”, the Communist Party’s flagship newspaper People’s Daily said in a commentary Saturday thatthe U.S. move is an “appalling” act to gain an advantage during trade negotiations and is doomed to fail.

Oh yes, and speaking of more devaluation – with Citi, JPM and SocGen now expecting the yuan to tumble to 7.35 or lower – Yu Yongding, a researcher at the Chinese Academy of Social Sciences, said in Yichun, said that while markets haven’t reacted too strongly to the weakening yuan this week, it is possible that “the yuan could weaken further on unexpected shocks in the future.”

end
This is big:  Chinese banks do not trust one another as the repo rate just skyrocketed past 8%
(zerohedge)

Chinese Banks No Longer Trust One Another As Repo Rates Skyrocket

For those who have grown bored with the ongoing US-China trade war whose escalation was obvious to all but the dumbest BTFD algos, the biggest news of the past week was that yet another Chinese bank was bailed out by the Chinese government – the third in the past three months – and a substantial one at that: with over 1.4 trillion yuan in assets ($200BN), Hang Feng Bank’s nationalization was certainly large enough to make a dent on the Chinese financial system and on the Chinese Sovereign Wealth Fund, which drew the short straw and was told to bailout the troubled Chinese bank (more here).

Hang Feng’s bailout followed those of Baoshang and Bank of Jinzhou, which means that 3 of the top 4 most troubled banks have now been either nationalized by an SOE or seized by the government, which is effectively the same thing.

Of course, to regular readers this development was hardly surprising, especially after our post in mid-July when we saw the $40 trillion Chinese banking system approach its closest encounter with the proverbial “Lehman moment” yet, when inexplicably the four-day repo rate on China’s government bonds (i.e., the cost for investors to pledge their Chinese government bond holdings for short-term funding) on the Shanghai exchange briefly spiked to 1,000% in afternoon trading.

While some attributed the surge to a fat finger, far more ominous signs were already present, and in the aftermath of the Baoshang failure, which has sent Chinese banking stocks tumbling, one-day and seven-day weighted average borrowing rates had remained low thanks to huge central bank cash injections – such as the 250BN yuan we described back in May  – longer tenors such as the 1 month repo have marched sharply higher.

And now, none other than Goldman points out that something is clearly breaking inside China’s banking system as one after another small bank domino falls, and as following the Baoshang Bank takeover in late May, interbank lenders have become more cautious towards the credit risk of smaller and weaker financial institutions.

The result: a Chinese banking system in which banks have lost trust in one another, manifested itself in much tighter liquidity in the interbank market, with the highest intraday 7-day repo rates staying above 8% over the past month as questions swirl over the viability of the underlying collateral. In fact, as shown in the chart below, the creeping funding freeze among Chinese banks is now even worse compared to the historic episode in the summer of 2013 when following an aggressive ramp up in Beijing’s deleveraging campaign, repo rates exploded to the point that banks effectively stopped interacting with each other.

As Goldman observes, “the sustained spikes in intraday repo rates suggest that some banks are still under pressure and are having to pay higher costs to obtain funding in the interbank market. A number of action has been taken to ease concerns regarding credit risk at smaller banks, including the recent equity injection into Bank of Jinzhou by ICBC Financial Asset Investment Company and China Cinda Asset Management.”

Nonetheless, as the bank concludes, “it will take more time before market conditions will normalize.” Meanwhile, if more banks from the list above, or worse, larger banks, end up failing – and so far there is every indication that the process is only getting worse – the Chinese funding freeze could get so large that the most dreaded event finally take place: a bank run among one of China’s largest, state-owned banks, which as a reminder, are also the largest in the world.

zerohedge@zerohedge

The 4 largest banks in the world are Chinese:

1. ICBC: $4TN
2. China Construction: $3.4TN
3. Agri Bank of China: $3.3TN
4. Bank of China: $3.1TN

Now that we know China’s response, it’s time for the US counter-retaliation.

One final, if key, point: it’s not just Chinese banks that are in funding peril, Chinese corporations are are on the firing line, and as Goldman points out in the same report, the pace of China onshore bond defaults is showing no signs of slowing down. According to the bank’s estimates there were five new defaults in July, bringing the total number of new defaults this year to 23 (Exhibit 1), compared with 38 new defaults that occurred in 2018. These 23 issuers had RMB 90.5bn of onshore bonds outstanding at the time of default, equating to 0.5% of all onshore corporate bonds outstanding at the start of 2019. However, all the defaults so far this year are from privately owned enterprises (POEs), and the RMB 90.5bn of onshore bonds outstanding at the time of default equates to 3.5% of all POE bonds outstanding at the start of this year. To us, the elevated level of defaults continue to impact weaker credit, as the net issuance of bonds rated AA or lower turned negative in July.

For those curious, below is a comprehensive, if not complete, list of Chinese corporations that have defaulted since 2014, when China first started permitting corporations to fail (smaller companies have been omitted).

end
When should the globe panic where the ultimate value of the yuan would be?  Answer: 7.30
and then Armageddon
(zerohedge)

When Should You Panic About The Yuan? Here Is The Simple Answer

Chinese authorities weakened the Yuan Fix for the 8th day in a row overnight, sending offshore yuan down to 7.10/USD, drifting back towards last week’s devaluation lows.

Some have proclaimed the recent ‘stability’ – i.e. yuan hasn’t kept collapsing in a straight line despite capital outflow fears and the political crisis in Hong Kong – a positive

But as Nordea warnsThe PBoC is the key for global risk sentiment currently.

USD/CNY has become the most important gauge of the trade outlook and a further move north would spell trouble for risky assets. 7.30 is an important line in the sand in our view. To counter the newly announced 10% tariffs on the rest of the Chinese export goods, the PBoC would have to allow USD/CNY to move to 7.30 to counter the effects 1 to 1.

A move above 7.30 would likely lead to panic mode in the financial markets, while the interval between 7.00 and 7.30 is to be considered risk-off territory. Below 7.00 is stabilisation territory.

Chart 1: The USD/CNY risk’o’meter

We take at least some comfort in the current policy from the PBoC. They have continuously set the USD/CNY fixing lower than “they should” over the past days. This is in our view a sign that the PBoC is trying to cave in the upside pressure on USD/CNY. Remember that markets, not the PBoC, weaken CNY versus USD, and currently the PBoC is fighting against the market. They will not continue fighting gravity forever.

Chart 2: The PBoC sets the USD/CNY fixing at too low levels, a sign that they fight against market forces

In the coming days we will likely see a lot of stories on “China pondering selling Treasuries as part of the trade war”. In our view this is a non-sensical storyline. China only offloads Treasuries when market pressure is on the upside on USD/CNY. So right now, the PBoC may be offloading USDs and Treasuries, but all in an attempt to stabilise USDCNY. The market (almost solely) dictates the USD & Treasury holdings of the PBoC, not the PBoC itself.

And so there it is… Don’t Panic quite yet… but soon.

end

China’s total Financing report is a great disappoint as their economy slows down to a walk. This may be intentional as they are seeking some dry powder in access the trade wars escalate even further.

(courtesy zerohedge)

More Bad News Out Of Beijing: China’s Credit Engine Breaks Down

It’s been a bad year for China, and it’s only getting worse.

With Beijing suffering an escalating trade war with China which has crippled local economic sentiment, slammed growth to record lows, and unleashed a currency devaluation (and currency war) sparking fears of capital flight even as PPI inflation turned negative slamming corporate profits as soaring pork and fruit prices sent CPI soaring and made future rate cuts by the PBOC extremely complicated, cuts desperately needed by a banking sector caught in an interbank funding freeze that culminating in a record three bank bailouts in three months while plain vanilla corporate defaults soar to an all time high, the only thing that China had going for it was the world’s most aggressive credit creation machine, which back in January injected a gargantuan 4.64 trillion yuan ($684 billion) in total credit, more than the GDP of Vietnam, and sparked hopes of a 2nd Shanghai Accord and that China would finally reincarnate the long missing Chinese Credit Impulse which back in 2009 saved the world from all out depression.

But it was not meant to be, because to great trader disappointment, this morning Beijing reported that Beijing credit creation dynamo sputtered again and in July credit numbers came in significantly below expectations, for both new yuan loans and the all-important total social financing number:

  • New CNY loans were RMB 1.060 trillion in July vs. consensus of RMB 1.275 trillion. The growth rate slowed again, with outstanding CNY loan growth dropping to 12.6% yoy in July from 13.0% yoy in June.
  • Total social financing RMB 1.010 trillion in July, a whopping miss to consensus of RMB 1.625 trillion. This number, also, decline with the PBOC reporting that TSF stock growth was 10.7% yoy in July, vs. 10.9% yoy in June.

More disappointing, this was the second weakest TSF print of 2019…

… and one of the lowest prints in recent years, coming at the worst possible time – just when China desperately needs much more liquidity to offset the slowing macro environment.

On the monetary side, the broader, M2, aggregate rose just 8.1% yoy in July vs the 8.4% consensus estimate, just shy of all time lows.

As Bloomberg reported over the weekend, the PBOC’s unexpected coyness in the credit market is likely the result of the Beijing’s hopes to hold on to some dry-powder for the coming winter in case trade war escalates further, while Nomura’s Ting Lu noted that “…Beijing simply cannot afford to stop easing yet.”

Some more details from Goldman: adjusted TSF stock growth slowed down to 11.1% yoy in July, mainly dragged by the decline in banker’s acceptance bill (RMB -456bn, the largest decline since July 2016) a key component of China’s “shadow” banking system, which continues to shrink as shown below.

Goldman thinks the slowdown in money and credit growth in July was likely intentional:

Policymakers marginally tightened policies on the back of the following positive factors: activity growth was strong in June; the liquidity stress related to Baoshang Bank’s takeover was gradually fading; trade negotiations appeared to be going smoothly at the time.

On the other hand, the impact of the tighter policy stance was likely larger than policymakers had expected, and according to Goldman, it’s likely they took administrative actions towards the end of the month to boost credit supply. Without these actions, data would have been even weaker. One downside of quantity-based administrative measures is that commercial banks may take actions to satisfy government demand, but which don’t necessarily support real economic activities. While this is true whenever the government takes administrative action, it is especially important when the push is very late in the month and there is a lack of other complimentary measures such as a lower interbank rate.

And while next month’s data may be stronger, for now expect continued downside surprises, and according to Goldman, July activity growth data to be released on Wednesday will likely be weak too, especially in light of the soft credit growth data today. Given sequential growth already appears to be tracking at the low end of the target GDP growth range of 6-6.5%, it is very likely that the policy stance is likely being loosened again in August to support economic growth, especially since downward pressures on the economy have clearly increased – trade tensions escalated further, and after the news on Bank of Jinzhou and Hengfeng Bank, interbank market participants could still be worried about liquidity risks.

But while Goldman rationally expects an easier policy stance going forward, at least until National Day (October 1st), a far bigger surprise would be if the PBOC refuses to comply with demands to inject much needed liquidity into the system… or is simply unable to, as the existing system leverage has never been higher. If that is the case, run, as the world’s biggest credit creation engine – that which almost singlehandedly managed to offset the depression that had gripped the western world in 2008/2009 – can barely raise off its lows.

Until the red line in the chart above fails to post a substantial increase – and certainly rise above the downward trendline – there is absolutely no hope for a global reflationary impulse and readers should keep buying bonds even if rates approach zero and eventually dip negative.

4/EUROPEAN AFFAIRS

Here Mish Shedlock describes how the remainers are trying to disillusion citizens.

We will have a hard Brexit and Great Britain will be better off.

(Mish Shedlock/Mishtalk)

Brexit: Still More ‘Remainer’ Delusions

Authored by Mike Shedlock via MishTalk,

It is amusing watching the Remainers and their desperate acts to prevent a No Deal Brexit.

Unity Laugh of the Day

JonWorcesterMan #IAmAEuropean 🔶@JonWorcesterMan

Remainer MPs are plotting to bring down Boris Johnson’s government, install a “unity prime minister,” and delay Brexit – Business Insider : https://apple.news/AeHfBKD_pT7WXMcOw64K_Uw 

Remainer MPs are plotting to bring down Boris Johnson’s government, install a “unity prime minist…

Labour MP Yvette Cooper has been touted as a potential leader of a national unity government. Remainer MPs are reportedly plotting to bring down Boris Johnson’s government, install a “unity prime…

apple.news

See JonWorcesterMan #IAmAEuropean 🔶‘s other Tweets

Unity Prime Minister Plot

  • Remainer MPs are reportedly plotting to bring down Boris Johnson’s government, install a “unity prime minister” for a few days to delay Brexit, then call a general election.
  • Remainer Members of Parliament are considering a plan to install a “unity prime minister” to replace Boris Johnson with the sole purpose of delaying Brexit before calling a general election, according to a report.

90% Chance Silliness

Business Insider also claims There is a 90% chance Boris Johnson will break his ‘no-deal’ Brexit promise, according to these numbers.

Here’s yet another one: We can collapse your government to prevent no-deal Brexit, senior Conservative MP warns Boris Johnson

March to the Queen

The most ridiculous all is the Remainer threat by John McDonnell who proposes Corbyn Should Tell Queen ‘We’re Taking Over’ if Johnson Loses Confidence Vote.

Useful Tip From Eurointelligence

We have a useful tip for readers who follow Brexit professionally. The easiest way to cut down on your daily Brexit readings without losing any information whatsoever is to exclude two overlapping categories of writers and commentators: anybody who has not read or understood Art. 50 of the Lisbon Treaty and thus treats Brexit purely in the context of UK law and politics; and anybody who involves the Queen at some part in the process, like the extreme Leavers who call for the prorogation of parliament, and the extreme Remainers who want parliament to stop a no-deal Brexit. Some commentators fall into both categories simultaneously.

Today we would like to debunk the myth that the UK parliament can stop the no-deal Brexit. Under EU law – the law that matters in this specific discussion – there are only two technical possibilities for the UK parliament to frustrate an October 31st Brexit. The first and the only certain route is a majority in favour of unilateral revocation of Brexit. No such majority exists.

This leaves a less certain pathway: to seek a further Art. 50 extension. Since Boris Johnson refuses to do this, it would have to involve a new prime minister before October.

So what would happen if the House of Commons were to pass a vote of no-confidence in Johnson’s government? Under the fixed-term parliaments act, this would trigger a 14-day period in which parliament can seek an alternative candidate for the job of prime minister. Failing that, there would have to be elections.

An alternative prime minister would be tasked with doing two things only: to write a letter asking the European Council for an extension and to seek immediate elections. It would be what the Italians call a technical government. There was some discussion yesterday on whether Johnson would need to resign even if parliament were to succeed in finding such a candidate. We believe that to be the case. Others do not. But for now this is an idle discussion to which we will happily return if we get to that point. We will probably not, because the numbers are simply not there.

Technically Possible vs Politically Impossible

This notion of marching to the Queen is madness.

The Queen aside, it is technically possible for Parliament to oust Johnson and hold elections.

Repercussions

  • Any Tory voting against the government would be outed from the Tory party and lose their seat in the next election. Perhaps a few would, but not the 17 that Business Insider requires to come up with their ridiculous 90% confidence level.
  • The second thing that would happen is the Tories would form an alliance with the Brexit Party and Labour would get smashed in the elections.

It will not get to that point because the threat is political madness.

Politically Impossible

It would take nearly 100% of the opposition plus a handful of Tories to agree to a caretaker government. 17 Tories will not vote themselves out of office.

A handful might. Even then it would be iffy because there are a handful of Labour MPs who want Brexit.

Then, even if the Remainers managed to form a caretaker government until the next election, they would still have to win the election.

Let’s dive in further.

The Financial Times reports Lib Dems scotch idea of Corbyn-led caretaker government.

  • “I can’t conceive of any circumstances under which we would put Jeremy Corbyn into No. 10,” said one senior Liberal Democrat MP. “He’s not only dangerous for our national security but for our economic security too.”
  • Corbyn’s Labour don’t want to work with other parties to stop Brexit, because the truth is they want to deliver Brexit,” said Jo Swinson, the recently elected Liberal Democrat leader.

While technically possible, the Liberal Democrats want nothing to do with Corbyn. Labour’s official policy is a customs union, not remaining in the EU.

Technically, I suppose Corbyn could resign as Labour party leader to make an alliance possible but the Liberal Democrats want to be the senior party, not the junior party.

Yeah, right.

UK General Election Polls

Political Reality

  • On June 6 (not shown), the Brexit Party had a 26% share. Conservatives fell to 17%.
  • Since then, conservative support has soared along with Boris Johnson’s pledge to deliver Brexit.
  • Those in favor of Brexit have united.
  • The Remainer vote is split between Labour which wants a customs union and the Liberal Democrats who want to stay in the EU totally.
  • The Liberal Democrats do not want anything to do with Corbyn for many reasons.
  • An alliance between the Brexit Party and the Tories is likely. An alliance between Labour and the Liberal Democrats isn’t, unless Corbyn steps down, and most likely not even then unless Labour changes its political stance to Remain.

Political Math

The above math can change. But how likely is that?

Note that it’s not just the Liberal Democrats who refuse to deal with Corbyn. The reverse is true as well.

Eurointelligence comments “For now, the Labour frontbench team has firmly ruled out the idea of supporting a government of national unity. Rebecca Long-Bailey, a Labour frontbencher who is close to Corbyn, yesterday categorically ruled out supporting a government of national unity to deal with Brexit. We can see why. It does not make sense for them.

In the UK’s voting system even small percentage difference can result in massive parliamentary majorities.

The above math would be a devastating election for Labour and the Liberal Democrats as well. Politically, it could be worth it for Jo Swinson just to do away with Corbyn. Alternatively, Corbyn might stand down or be forced out.

Either way, Corbyn will never be UK Prime Minister and the Tories are highly likely to remain in power, having delivered Brexit.

END

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Israel/the Gulf/Iran

Iran threatens Israel with war if they join the USA flotilla in the Gulf.  There is really no need for Israel vessels. However they couldprovide raw intelligence.

(zerohedge)

Israel Would “Spark War” By Joining US Flotilla In Gulf: Iran’s Navy Chief

Days ago we reported that Israel’s leaders were in discussions over the possibility of joining the recently proposed US maritime coalition in the Persian Gulf to escort international tankers to ward off threats from Iran, which could involve direct Israeli naval participation, or more likely would be limited to intelligence-sharing.

Following the initial Reuters and Israeli media reports of top cabinet level meetings taking place, Tehran warned on Sunday that any Israeli presence in waters near Iran would lead to war.

“Any illegitimate presence by the Zionists in the waters of the Persian Gulf could spark a war,” Navy commander of the Iranian Revolutionary Guard’s Navy, Alireza Tangsiri, warned on Sunday.

 

Islamic Revolution Guards Corps Navy commander Alireza Tangsiri. Screen capture/YouTube via The Times of Israel.

The warning came a day after on Saturday Senior Advisor to the Iranian Parliament, Speaker Hossein Amir Abdollahian, posted a statementto social media promising that “smoke will rise from Tel Aviv” should Israel joint the United States’ maritime patrol in the gulf.

Israeli media had quoted Foreign Minister Israel Katz last week as confirming discussions were underway among top defense officials over possibly joining the US maritime protection initiative in the contested waters.

Thus far Israel has reportedly offered to provide intelligence to the joint maritime patrol mission, as well as other undefined assistance.

It’s unlikely that either the US or other members of the potential coalition like the UK would allow actual Israeli naval or troop presence in the Persian Gulf, given the likelihood that it would lead to war, as the IRGC is now threatening.

Meanwhile the only European country to enthusiastically jump on board the US administration’s joint patrol plan has been the United Kingdom, with Germany and France trying to distance themselves, even as they attempt to form a European-led maritime initiative.

Most countries are still “undecided,” for example France, Japan, and India, and are likely waiting to see what others do. Even China is reportedly mulling some level of involvement in the proposed escort mission.

6.Global Issues

Bill Blain talks about all of the  problems facing the globe

(zerohedge)

 

Blain: “The Threat Board Is Flashing Amber”

Blain’s morning porridge, submitted by Bill Blain of Shard Capital

I blew myself up on Sunday…

While cooking for a bunch of pals in the back garden I opened the Big-Green-Egg and it burped!  A fireball of superheated charcoal plasma/flame blevied outwards.  The conflagration removed much of my already scarce hair and my left eyebrow. No real damage except to my pride – and very embarrassing.  My chums are mining a rich vein of hair-loss and eyebrow memes and puns – Eye, Eye Skipper! Feel free to contribute.  What really peeves me is I had a proper hair-cut last week…  I could have saved my money if I’d known.

Markets – more of the same?  

What have we got to look forward to in markets this week?  Trade and Data sensitive, and FX led.  The trend remains for very choppy conditions as investors try to balance how far to chase down bond yields as a flight to safety trade or in the face of likely central bank easing.  They key factor remains data, and it’s all pointing to weaker economic numbers from just about everywhere.  However, it does feel the race to lower yields has paused.  Also worth listening to the comment flow from central banks.

I’m increasingly worried about Europe’s vulnerability.  German data on Wednesday is likely to confirm Europe’s strongest economy contracted in Q2 – which puts last week’s UK slide into perspective.  Germany looks weak and defensive – and how will the EU respond if Trump decides to lash out on trade? It’s possible.  It looks clear the China discussions are going nowhere.  Even Trump understands zero sum game.

Time to bully someone else? What many analysts deride as “Incoherent Policy Decisions”, could equally be seen as considered probing of economic weakness. Trump sees a bulls-eye vs Germany. How many points can he score with his electorate?  How Europe’s trade surplus with the US is growing – and Germany is 40% of that.  The German’s don’t import much from the US, and they’re buying oil and gas from Russia! And the US is effectively defending them because of low defence spending! The temerity of these people!

The second factor to consider is trade rhetoric.  Get over it.  It’s happening – and it’s happening first in currency markets.  Some analysts are fearful dollar strength will trigger further pain and thus a recession led out of EM nations – much as happened in the late 90s.  The strength of the dollar is focusing the pain on to the US.  FX is a funny old market – they say you can’t fight central banks, but currency intervention is a funny old thing – very difficult to do well or effectively.  In recent weeks “currency manipulation” has become a theme – but there is precious little to be done about it in terms of further tariffs!

And then there is the equity markets – where do we go from here?  Some of the corporate news last weeks looked weak.  Much of it is company specific – such as Disney discovering its over-hyped Star Wars experience isn’t the must do “guest-experience” they anticipated!  What is surprising are the scale of intra-day moves on bad news – such as Burford trading up and down through 50% moves on the back of a short-seller report.

The economic picture remains of slowdown, with a rising chance of a full blown recession as economies struggle in the wake of trade.

Meanwhile, the threat board is flashing amber again.

The first big threat is Italy. Deputy Prime Minister Matteo Salvini has been sporting budgie smugglers as he parades round Italian beaches to spread his message of peace and love.. (unless you an immigrant, refugee, feckless southerner, or supporter of 5-star). He’s confident his League can win. A new Election is likely in Oct, which means the critical discussion on the next Italy budget. Salvini favours cutting taxes, raising cash, spending money on the moribund economy, and challenging EU 3% deficit limits. That puts him on crash course with the ECB. What happens? Will the ECB decide to accommodate him – persuaded by the long-term decline in Italy metrics? Or how will the German’s respond.

Last week I got very mixed signals from Germany.  For a while some political analysts have been telling me there is a good chance Germany will agree to fiscal reflation: partly because they understand the economic need, and also the political need to cement a post-Brexit EU together.  But others tell me opinion is hardening against handouts, and German opinion is moving away from support for the ECB allowing other EU members to borrow.

All of which means Italy could trigger yet another bout of European wobbles.

Moving on.. Who do you think murdered Jeffrey Epstein? Trump tweets say it was Bill Clinton! C’mon.. the fact the new Monica Lewinski sponsored version of that Dress story will be shown 5 weeks before next year’s US election says it all. Best suspect I’ve heard thus far is Daniel Craig as 007 on the orders of Her Majesty – she’s very protective of No 2 son.  Even George Clooney is supposedly in the frame this morning. Bottom line is Epstein’s death is just a little too convenient.  I would love to know the truth, and in the US, the truth still finds its way out. After watching the old film of Trump and Epstein…..

Debt Armageddon?

And if you really want to scare yourself this morning try this from Evergreen-Gavekal – Debt-End.  It summarises all the reasons to panic about the bond market.  They are all issues we’ve discussed in the porridge over the years.  I would certainly agree there are debt threats from negative yields distorting economic behaviour, the risks in credit markets being hidden and magnified by low yields, and the dangers of more and more debt.  I am looking at the corporate debt market and shaking my head in disbelief, just waiting for the BBB implosion…….

But I also think we have to acknowledge the opportunity states have to reflate their economies through fiscal policy.  Raising cash when rates are high is one issue.  Now its different. Rates have never been so low.  Sure, there are risks in terms of inflation and asset collateral damage if countries start to run the money printing presses (which Europe can’t do).  But there are also opportunities in terms of growth and upside from renewed social and economic infrastructure.  The world is now so mired in the consequences of 10years of financial repression and failed monetary experimentation, there is little alternative but to try doing something new!

Blain’s Brexit Watch

Three stories sum up the reality of Brexit:

One is a Welsh Trailer Maker struggling to hire the staff it desperately needs to meet its burgeoning export book – which is growing as sterling tumbles and their excellent trailers become competitive in export markets.

The other was dinner with someone who used to compile the economic reports from business used by the Bank of England. The person confirmed miserable business sentiment across England due to Brexit – not just uncertainty, the fact its happening, but the damage being done to order books.

Another of my chums runs a successful business, but is seeing it under extreme pressure because of its European links. He asked a very simple question: “Can anyone give me any reasons at all how Brexit will improve my business”. He is very worried the Government’s promised support for small businesses – will be sucked up by the big firms!

UK SME’s need reassurance! There is a challenge for the Chancellor!

Meanwhile, Boris will apparently accept Leo Varadkar’s invitation to meet.  Apparently the Irish will not budge on the Backstop.. so nothing changes.  The realisation a no-deal is now the default on Oct 31 – rather than no-exit or an extension is finally dawning across the UK. I wonder if it is in Europe? If it is – and I hope so – then all it takes is a bit of give and there is a chance to find a new more acceptable solution to give the UK a negotiated exit. Anything that lets the UK leave, but keeps doors and borders open and time for everyone to adjust would be a massive win all round. UK remains a valued trading partner and market, and gets to be outside the political construct.  Better for everyone.  And for Europe, a deal with UK could be a plus…  defusing the tensions bound to follow an Italian job…

Sadly… the reality is a bit like the weekend weather. Grey and blustery… and far too stormy!

And Finally.. .

Service might be intermittent this week.  It’s Cowes Week – the greatest sailing regatta in the world. I’m only racing a few days this year because of work commitments – I am such a martyr!  I already missed doing the Fastnet Race this year.  It’s just possible the office TV will be switched to Cowes TV. If I don’t answer my phone.. try the mobile.  I’m certainly in London Monday-Wednesday!

Even without my left eyebrow I was greatly impressed watching the Larry Ellison/Russel Coutts designed Sail F50 GP championship off Cowes y’day. These fantastic 50 ft fast wingsail foiling catamarans do 50 knots plus! 6 of them were racing up and down the Solent. Spectacular stuff – great capsize from the Americans (although they got their boat upright and racing again 20 mins later) but the Brits had to retire after they buried their boat and broke it. Ooops.

Australia nailed every race convincingly!  The crews are top level sailors, comprising America’s Cup and Olympians.  The boats are sponsored by leading brands.  It’s a clean sustainable support – crewed by Athletes and powered by Nature!  But, unless you are a sailing fan, you probably didn’t know anything about it.  The national TV channels didn’t mention it or deem it worth of coverage!  10,000 spectators watching from the shore disagreed! Catch it on You-Tube.  

end
Argentina
Argentina now in trouble as the leftists wins a stunning victory over the pro business reformists under Macri.
The bonds collapse as well as the currency as 61 Argentina Pesos per dollar
(zeorhedge)

Argentine Bonds, Currency Collapse As Leftist Wins Stunning Victory In Weekend Primary

Argentine markets were in turmoil on Monday after voters roundly rejected pro-business reformist president Mauricio Macri and his austere economic policies in primary elections held over the weekend.

Instead, Populist Peronist candidate Alberto Fernández won the weekend primary by a much wider-than-expected margin, leaving him a shoe-in to win in the fall, and end Argentina’s one-term experiment with a more business friendly regime.

Argentina’s 2028-maturing, euro-denominated government bond was down more than 13 cents in European trading, Tradeweb data showed.

Source: Bloomberg

The Argentine century bond also collapsed.

Source: Bloomberg

Meanwhile, the cost to insure Argentine debt swelled.

Source: Bloomberg

Fernández’s primary win wasn’t a surprise. In fact, markets had been anticipating a strong showing by Fernandez and vice presidential candidate Cristina Fernandez de Kirchner with a growing sense of dread.

However, the Argentine peso opened down a stunning 25%, crashing to a new record low at over 61/USD…

Source: Bloomberg

Many fear that if Macri loses this autumn’s election, it could mean that the economic stability his government ushered in recently will come to an abrupt end. Under Macri, Argentina received the largest IMF bailout on record, $50 billion, largely to help stabilize the peso.

“The probable deterioration of sentiment and the resulting tightening of financial conditions in coming days and weeks may pose yet another headwind to the still fragile recovery of the Argentine economy,” said Tiago Severo, economist at Goldman Sachs.

He added:

“More importantly from a political standpoint, renewed depreciation pressures on the peso may delay and perhaps even reverse the incipient decline in consumer price inflation, harming the image of the Macri administration and weighing further on the president’s re-election bid.”

On Sunday night, there were scenes of jubilation among Fernández’s supporters around Buenos Aires, with chants of “We’re going to return.” Macri and his supporters were somewhat more restrained.

end

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1191 DOWN .0005 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL RED

 

 

USA/JAPAN YEN 105.08 DOWN 0.528 (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 1.2093   UP   0.0078  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3247 UP .0029 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  MONDAY morning in Europe, the Euro FELL BY 5 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1191 Last night Shanghai COMPOSITE CLOSED UP 40.24 POINTS OR 1.45%

 

//Hang Sang CLOSED DOWN 114.58 POINTS OR 0.42%

/AUSTRALIA CLOSED UP 0,10%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 114.58 POINTS OR 0.44%

 

 

/SHANGHAI CLOSED UP 40,24 POINTS OR 1.45%

 

Australia BOURSE CLOSED UP 0.10% 

 

 

Nikkei (Japan) CLOSED UP 91.47  POINTS OR 0.44%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1505.00.10

silver:$16.97-

Early MONDAY morning USA 10 year bond yield: 1.68% !!! DOWN 6 IN POINTS from FRIDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.20 DOWN 6  IN BASIS POINTS from FRIDAY night.

USA dollar index early MONDAY morning: 97.50 UP 1 CENT(S) from  FRIDAY’s close.

This ends early morning numbers MONDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing MONDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.24% DOWN 1 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.22%  DOWN 4   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

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

ITALIAN 10 YR BOND YIELD:1,70 DOWN 6 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 143 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.59% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.29% 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 MONDAY

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

Euro/USA 1.12160  UP     .0019 or 19 basis points

USA/Japan: 105.34 DOWN .265 OR YEN UP 27  basis points/

Great Britain/USA 1.2066 UP .0051 POUND UP 51  BASIS POINTS)

Canadian dollar UP 21 basis points to 1.3237

 

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The USA/Yuan,CNY: AT 7.0581    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  67.0976  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.5551 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

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

 

Your closing 10 yr US bond yield DOWN 9 IN basis points from FRIDAY at 1.66 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.17 DOWN 9 in basis points on the day

Your closing USA dollar index, 97.15 UP 81  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 MONDAY: 12:00 PM

London: CLOSED DOWN 27,13  0.37%

German Dax :  CLOSED DOWN 14.12 POINTS OR .12%

 

Paris Cac CLOSED DOWN 7.161 POINTS 0.33%

Spain IBEX CLOSED DOWN 81.40 POINTS or 0.93%

Italian MIB: CLOSED DOWN 60.40 POINTS OR 0.30%

 

 

 

 

 

WTI Oil price; 54.47 12:00  PM  EST

Brent Oil: 58.47 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    65.49  THE CROSS LOWER. 23  RUBLES/DOLLAR (RUBLE HIGHER BY 23 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.59 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 :  54,76//

 

 

BRENT :  58.34

USA 10 YR BOND YIELD: … 1.64… down 10

 

 

 

USA 30 YR BOND YIELD: 2.13..down 12..

 

 

 

 

 

EURO/USA 1.1212 ( UP 16   BASIS POINTS)

USA/JAPANESE YEN:105.35 DOWN .263 (YEN UP 26 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.43 DOWN 6 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.076 UP 60  POINTS

 

the Turkish lira close: 5.5596

 

 

the Russian rouble 65.47   UP 0.21 Roubles against the uSA dollar.( UP 21 BASIS POINTS)

Canadian dollar:  1.3239 down 23 BASIS pts

USA/CHINESE YUAN (CNY) :  7.0581  (ONSHORE)/

 

 

USA/CHINESE YUAN(CNH): 7.1018 (OFFSHORE)

 

German 10 yr bond yield at 5 pm: ,-0.59%

 

The Dow closed DOWN 391.00 POINTS OR 1.49%

 

NASDAQ closed DOWN 95.73 POINTS OR 1.270

 


VOLATILITY INDEX:  20.47 CLOSED UP 2.50

LIBOR 3 MONTH DURATION: 2.175%//libor dropping like a stone

 

USA trading today in Graph Form

Geopolitical Chaos Slams Stocks As Traders Flood Into Safe-Havens

With ‘everyone’ on vacation, geopolitical chaos drove risk-off today

  • China trade war
  • Hong Kong revolt
  • PLA buildup
  • German recession
  • Italeave
  • Epstein farce
  • Argentina’s ARS pounded
  • Kashmir chaos
  • Russian nuke explosion
  • Iran tanker safari

Sending gold above stocks for the year…

 

 

urce: Bloomberg

And since Powell’s “mid-cycle adjustment”, gold and bonds are the big winner…

And on the day, investors dumped the broad market while piling into Bonds, Bullion, and BYND as safe-havens…

Source: Bloomberg

Chinese stocks were miraculously bid today (after some brief selling in the early afternoon session, stocks soared as HK tensions escalated)…

Source: Bloomberg

A positive open in Europe did not end well…

Source: Bloomberg

New record low close for Bund yields…

Source: Bloomberg

Crushing European Banks to a critical support level…

Source: Bloomberg

And US equities were all lower on the day (led by Trannies)…

CNBC Anchor: “Equity markets have picked up a bit, now down just 430 points”

Bagholder On CNBC: “…we don’t want to sell, we are long term investors.”

Seems like the Fib 61.8% retrace was the hard limit for the short-squeeze dead-cat-bounce…

All the major US equities broke back below key technical levels…

 

Eerily echoing 1998’s performance…

Source: Bloomberg

VIX topped 21 intraday, and judging by 2s10s, has a long way to go…

Source: Bloomberg

Stocks and bonds remain decoupled

Source: Bloomberg

Treasury yields reverted back to collapsing today (led by the long-end)…

Source: Bloomberg

10Y Yields dropped to lowest since Sept 2016…

Source: Bloomberg

And 30Y is within a tick of record lows (2.09% on 7/8/16)…

Source: Bloomberg

The yield (2s10s) plunged to fresh cycle lows…

Source: Bloomberg

And 3m10Y is not at its most inverted since April 2007…

Source: Bloomberg

And in case you wondered how bad it could get, 5-year-forward 10Y yields plunged to a new record low…

Source: Bloomberg

 

Argentina was a bloodbath after Macri’s dismal showing in the primaries…

The peso crashed 25%…

Source: Bloomberg

And bond prices collapsed…

Source: Bloomberg

Yuan slid modestly weaker (after 8th straight day of weaker fixes)

Source: Bloomberg

Hong Kong Dollar drifted back towards the low-end of the USDollar peg band…

Source: Bloomberg

Cryptos are mixed since Friday after the overnight crash on Saturday morning (Bitcoin hovering around $11500)…

Source: Bloomberg

 

Copper was worst as crude managed to scramble back to breakeven but PMs were best…

Source: Bloomberg

As stock losses accelerated, gold (and silver) spiked higher…

With bund yields hitting new lows, gold will be pressured higher as having more yield than over $15 trillion of global bonds…

Source: Bloomberg

WTI bounced up to test $55…

Elsewhere in commodity-land, Iron Ore continues to crash…

  • DCE Iron Ore Spot index declines 9 days in a row.
  • Iron Ore futures -5.1%, low 609.5 RMB, 607 limit down

Source: Bloomberg

And Chicago Corn crashed most since 2013 as official corn-planting estimates exceeded analyst expectations.

Source: Bloomberg

 

 

Finally, as Gluskin-Sheff’s David Rosenberg noted: “For all the excitement and jubilation as one high followed another, courtesy of stock buybacks for the most part, the reality is that the S&P 500 isn’t even 1% above where it was on January 26th, 2018. More than a year-and-a-half of nothing … except the dividend, that is.”

And for now, the market-implied odds of a trade deal saving the world are around 12%…

And so…

And…

🤬@FreefallCapital

Global Central Banks

Embedded video

See 🤬‘s other Tweets
END

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

MARKET TRADING//USA

a)Market trading/LATE MORNING/USA

Stocks, Bond Yields Tumble As Global Times Warns US “Don’t Underestimate China’s Will”

While we patiently wait for Beijing to give the green light for the APC to cross from Shenzhen into Hong Kong, the EIC of the Global Times, the notoriously trollish Hu Xijin just poured some more oil on the trade war fire with a preview of what’s coming:

“People’s Daily, CPC’s official newspaper, will publish a long article Tuesday vowing China can defeat any challenge and pressure of the US. The signal sent by this kind of article is stronger than signal of US senior officials’ remarks.The US should not underestimate China’s will.

And stocks reacted rapidly…

And bonds (10Y 1.65% handle) and gold are safe-haven bid…

This won’t end well.

END

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

For two months of the year the budgetary deficit climbs to 867 billion dollars.  And remember this does not include auto loans and student loans (because there is a corresponding asset).  The true deficit is therefore somewhere north of $1 trillion heading to 1.2 trillion dollars for the fiscal year.  The USA financial scene is truly a mess

(zerohedge)

US Surpasses Entire 2018 Budget Deficit With Two More Months To Go In 2019

There were no surprises in the US budget deficit for July, the 10th month of fiscal 2019: it came in just as consensus had expected, at $120 billion, and about 55% higher than the $76.9BN deficit reported in July 2018. This was the 2nd biggest July deficit in the past 8 years…

…  and was the result of $251BN in government receipts in July, up 11.6% from the prior year, however offset by $371.0BN in government outlays, a rate of increase double that of revenues, or +22.8% from a year earlier. The biggest sources of government revenue were individual income taxes (127BN) and social insurance/retirement ($94BN), while the biggest outlays were social security ($88BN), Medicare ($56BN), National Defense ($56BN) and Health ($50BN).

On a year-to-date basis, for the first 10 months of Fiscal 2019, receipts were up 3.4%, while outlays increased more than double by 8.0%. More notably, on a cumulative basis, the US budget deficit for the 10 months of fiscal 2019 was $867 billion, surpassing the $779 billion deficit for all of fiscal 2018, with more months of deficit spending in 2019 to go.

As shown below, the ballooning budget deficit shows no signs of slowing and is set to surpass $1 trillion in just a few months: as of July 2019, the US deficit on an LTM basis was just shy of $1 trillion, or $962 billion to be precise, a number that was last surpassed in early 2013, and which will again be surpassed in by the calendar winter. After that, it will never drop below $1 trillion again.

Finally, and perhaps most concerning, is that for the first ten months of this fiscal year, interest payments on the U.S. national debt hit $497 billion, $43 billion, or 9% more than in the same four-month period last year and the most interest ever paid in the first third of the fiscal year. According to the Treasury’s forecast, interest expense on U.S. public debt is on track to reach a record $577 billion this fiscal year, more than the entire budget deficit in FY 2014 ($483 BN) or FY 2015 ($439 BN), and equates to 2.7% of estimated GDP, the highest percentage since 2011.

As a reminder, two weeks ago we showed readers that according to the US Treasury, starting in 2024 when the primary deficit drops to zero according to the latest projections (of course, this will never happen as the US will never run a balanced primary budget in the current financial paradigm), all US debt issuance will be used to fund the US net interest expense…

… which depending on the prevailing interest rate between now and then will be anywhere between $700 billion and $1.2 trillion or more.

end

iii) Important USA Economic Stories

USA lobster prices are now much higher than Cdn lobster prices. It seems that China is willing to overlook the taking of the COO Meng (Huawei) as they import tons and tones of Cdn lobster.(

zerohedge)

US Lobster Exports To China Plunge Amid Escalating Trade War

VOA News interviewed a business owner and a trade official in Maine following a massive drop in lobster exports due to President Trump’s escalating trade war. Their comments on the trade war are an eye-opener that contradicts the president’s claim that his trade duties on China won’t hurt American firms.

VOA spoke with Vice President of sales and marketing at Maine Coast, Sheila Adams, who said her company saw a 20% plunge in business activity in a matter of days last July after China retaliated against US tariffs on Chinese goods by raising duties on US food and agricultural exports, which included live lobsters.

Essentially what’s happened is about 80% of our sales into mainland China have gone away,” she said.

“And that’s purely because our product is simply just too expensive compared to the Canadian because of the additional 25% tariff that was levied.”

The 25% tariff paid by Chinese consumers was enough of a price shock that sent most of Maine Coast’s Chinese clientele north into Canada for cheaper, un-tariffed lobster.

“The North American lobster is caught in US waters, but also in Canadian waters,” Adams said. “So when they make a buying decision between ‘Do I want to buy a lobster out of Canada or do I want to buy a lobster out of the United States?’ it becomes very difficult for them to make a decision to buy an American lobster because it’s so much more expensive.”

“The Chinese as a culture love live seafood in general, and have a particular passion for live lobster,” she explained.

“Obviously it’s a very large country, with a lot of people, so they consume — or have the ability to consume — a lot of lobster, which is important for us as a wholesaler volume business.”

Adams and her team had to quickly shift sales channels out of China to new markets across Asia. Her facility can process, package, and prepare fresh lobsters for 29 countries weekly, but with the Chinese market obsolete at the moment, business activity has slumped.

“It takes all of those other countries combined to equal one market in mainland China. So we had to put a tremendous amount of effort across many, many markets to try to recoup the lost business in China,” Adams said.

Wade Merritt, president of the Maine International Trade Center, and director of international trade for the state of Maine, told Voa that Maine Coast is a good example of how President Trump’s tariffs impacted the local economy and penalized small businesses.

“We were up about 170% from January to June of 2018 — that was prior to the tariffs,” Merritt said. “But by the end of the year, Maine’s exports of live lobster to China had actually declined by almost 7%. So we gave up a lot of ground in a very short amount of time in those six months.”

Merritt said overall exports of live lobster to China from Maine had crashed 82% between 2018 and 2019. “So it has had a significant impact on that industry.”

“Think about the corner store, or the gas station, or the schools, or the anything in any of these communities that is a major lobster fishing port,” Merritt said. “If they’re not fishing lobsters, then there is a real problem for those other businesses too. So there are definite ripple effects that cascade down through the economy.”

Tariffs Hurt the Heartland, an alliance of trade associations and agriculture commodity groups, said tariffs cost US firms $3.4 billion in June alone.

Trump has stated that he can get a better deal with China by waging a trade war against them as a negotiating tactic, but at this point, it has widely backfired. American businesses that are suffering from the trade war could be the next recessionary shock in 2020

 

END

iv) Swamp commentaries)

Jeffery Epstein dies of an apparent suicide

(zerohedge)

Jeffrey Epstein Dead In Apparent Suicide

Jeffrey Epstein has died after having reportedly committed suicide in his jail cell, according to multiple news reports, after a gurney carriny what is believed to be Epstein was seen wheeled out of the Manhattan Correctional Center around 7:30 a.m., according to the New York Post.

Jon Levine

@LevineJonathan

POST EXCLUSIVE: Photos show Jeffrey Epstein as he’s wheeled into Downtown Hospitalhttps://nypost.com/2019/08/10/photos-show-jeffrey-epstein-as-hes-wheeled-into-downtown-hospital/ 

View image on TwitterView image on Twitter

The 66-year-old Epstein was was previously placed on suicide watch after he was found “nearly unconscious” inside his cell with ‘marks on his neck,’ according to a Post report from late July. Investigators questioned former Orange County police officer Nicholas Tartaglione, suspected of killing four men in a cocaine distribution conspiracy, in connection with the incident. The former cop claimed to have not seen anything nor touched Epstein.

Needless to say, today’s news is highly suspicious.

As the Wall Street Journal‘s Ted Mann notes, “Even the time of day in this story is shocking. The first check-in on a prisoner who had already attempted suicide once was not until 7:30 a.m.?

Quoth the Raven@QTRResearch

So Epstein failed to commit suicide the first time, is then placed specifically on suicide watch, THEN successfully commits suicide.

Right. Got it.

Will Chamberlain@willchamberlain

you misspelled “murdered”

Will Chamberlain@willchamberlain

Guess the guards just happened to be looking away from the cctv for an hour or so

View image on Twitter

The apparent suicide comes just hours after a massive trove of documents was unsealed in a case linked to Epstein, in which one of his victims said she was forced to perform sex acts with high profile individuals, including former Maine Sen. George Mitchell (D), former New Mexico Gov. Bill Richardson (D), money manager Glenn Dubin and MIT professor Marvin Minsky.

Virginia Giuffre, now an adult, says she was also sent to modeling executive Jean Luc Brunel and the late MIT scientist Marvin Minsky, according to parts of a 2016 deposition she gave. The testimony by Giuffre, who claims she was a “sex slave” for Epstein from 2000 to 2002, expands on her previous allegations, in court filings and tabloids, that she was forced to have sex with the U.K.’s Prince Andrew and Harvard University law professor Alan Dershowitz. Both men have strenuously denied those allegations. –Bloomberg

He was arrested on July 6 at Teterboro Airport in New Jersey on charges of sex-trafficking minors and subsequently denied bail.

neontaster@neontaster

This is the most suspicious prison death since Lee Harvey Oswald.

Robby Starbuck

@robbystarbuck

Epstein’s death will inspire countless conspiracies after elected Democrats were named yesterday along with others like Clinton who were previously implicated.

It was so important to keep him alive to face justice and possibly act as a witness against other powerful predators.

Robby Starbuck

@robbystarbuck

Jeffrey Epstein’s victims deserved to see him found guilty in a court of law & deserved for his case to be used as leverage to get justice against other powerful abusers who worked with him to sexually assault minors.

His case should’ve required supervision 24/7. Prison failed.

Meanwhile, Epstein’s personal pilots had been subpoenaed by federal prosecutors in Manhattan last month, which could be used to corroborate accounts from Epstein’s accusers, as well as his travels and associates.

A conveniently timed sale

While prosecutors claimed that Epstein owns two private jets, the registered sex offender’s attorneys said in a court filing earlier this month that he owns one private jet, and “sold the other jet in June 2019.” Considering that he was arrested after returning from Paris in his Gulfstream G550, per Bloomberg, it suggests that Epstein sold his infamous and evidence-rich Boeing 272-200 known as the “Lolita Express” weeks before his arrest.

According to flight logs, former President Bill Clinton flew on the “Lolita Express” a total of 27 times. “Many of those times Clinton had his Secret Service with him and many times he did not,” according to investigative journalist Conchita Sarnoff – who first revealed the former president’s extensive flights on Epstein’s “lolita express” in a 2010 Daily Beast exposé.

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

“I know from the pilot logs and these are pilot logs that you know were written by different pilots and at different times that Clinton went, he was a guest of Epstein’s 27 times,” said Sarnoff.

“It would not be surprising to find that some of these flight logs…were likely designed to hide evidence of criminal activity—or perhaps later cleansed of such evidence,” wrote the lawyers for some of Epstein’s accusers in a 2015 court filing.

Investigators may be interested in asking Mr. Epstein’s pilots whether they witnessed any efforts by Mr. Epstein to interfere with law enforcement, according to legal experts. In recent court filings, prosecutors have accused Mr. Epstein of tampering with witnesses, an allegation that Mr. Epstein’s lawyers denied in court.

Federal prosecutors in Miami and Mr. Epstein’s lawyers in 2007 negotiated over the possibility of Mr. Epstein pleading guilty to obstruction of justice, including for an incident involving one of his pilots, according to emails that became public in civil lawsuits. –Wall Street Journal

Meanwhile, prosecutors confirmed in filings that there are “uncharged individuals” in Epstein’s case – which has just gone away – or has it?

neontaster@neontaster

So if Epstein’s stuff implicates anyone else, they are well and truly fucked. https://twitter.com/KlasfeldReports/status/1160188170698469376 

Adam Klasfeld

@KlasfeldReports

Replying to @KlasfeldReports

Second reaction: A former federal prosecutor informs me about this secord-order effect in terms of legal procedure.

View image on Twitter

joshua rosner@JoshRosner

This is bullshit. was not just a he was a who trafficked to the class of the world and was protected by the same. Is that why his accomplices have not been indicted? The investigations must continue. .

Michael Krieger@LibertyBlitz

There it is. Another “suicide.”
Same sort of thing happened to his supposed madam’s father, Robert Maxwell. Super criminals sure know how to clean up. https://twitter.com/libertyblitz/status/1148263569202409475 

Michael Krieger@LibertyBlitz
Replying to @LibertyBlitz

Finally, Robert Maxwell was accused of having links to Israeli spy agency Mossad by Pulitzer Prize winning journalist Seymour Hersh.

There is a lot going on here. I hope people are watching Epstein and Maxwell closely to prevent any further “suicides.”

And look what’s trending:

neontaster@neontaster

Hanging yourself is not something you can do if you are being observed even in a cursory way.

Water is LIFE@H_2_Ohhh

everything in those cells is ligature resistant so there’s no place to even secure something to hang oneself

END
It sure looks like suicide is impossible when you are on suicide watch
(zerohedge)

Former MCC Inmate Says Epstein Suicide Was ‘Impossible’

A former inmate at lower Manhattan’s Metropolitan Correctional Center who spent several months in the prison’s notorious 9 South special housing unit for high-profile prisoners told the New York Post that it would have been ‘impossible’ for millionaire pedophile Jeffrey Epstein to have killed himself.

“There’s no way that man could have killed himself. I’ve done too much time in those units. It’s an impossibility,” said the former inmate, adding “Between the floor and the ceiling is like eight or nine feet. There’s no way for you to connect to anything.

“You have sheets, but they’re paper level, not strong enough. He was 200 pounds — it would never happen.”

The anonymous inmate says that when a prisoner is on suicide watch, they are placed in a straight jacket so that “a person cannot be injurious to themselves.”

That said, Epstein was reportedly taken off suicide watch despite having been found nearly unconscious on the floor of his prison cell three weeks ago with injuries to his neck. Moreover, Reuters has reported that two jail guards which were required to check onall prisoners every 30 minutes (every 15 minutes for suicide watch) failed to follow protocol the night Epstein died.

That said, according to the former inmate, “They don’t give you enough in there that could successfully create an instrument of death. You want to write a letter, they give you rubber pens and maybe once a week a piece of paper,” and that there’s nothing hard or metal provided.

The former inmate also described the miserable conditions one might expect in prison;

It’s like you’re an animal and you’ve been brought into a kennel. A guy like Jeffrey, it’s like, “Holy sh-t.”

I told my parents not to come there. God wasn’t in the building.

I’ve had some heavy incidents in the building. What happened is permanent.

Some of the guards are on a major power trip. They know guys there are suffering. They know something the rest of the world hasn’t seen, that a place like this exists in this country, and they get off on it.

If the guards see that the guy is breaking, they’re going to help you break. –New York Post

But it’s my firm belief that Jeffrey Epstein did not commit suicide. It just didn’t happen,” the inmate concluded.

Epstein’s autopsy is expected Sunday afternoon.

end
Epstein’s autopsy results are delayed:”pending further information”.  What on earth could that pending information be??
(zerohedge)

Epstein’s Autopsy Results Delayed “Pending Further Information”

The much-anticipated results of the New York City medical examiner’s autopsy of Jeffrey Epstein have been released… kinda… saying its determination is “pending further information at this time.”

Statement from Chief Medical Examiner Dr. Barbara Sampson:

Today, a medical examiner performed the autopsy of Jeffrey Epstein.

The ME’s determination is pending further information at this time.

At the request of those representing the decedent, and with the awareness of the federal prosecutor, I allowed a private pathologist (Dr. Michael Baden) to observe the autopsy examination.

This is routine practice.

My office defers to the involved law enforcement agencies regarding other investigations around this death.

Inquiries regarding the determination of the Chief Medical Examiner should be directed towards my office.

So, the autopsy is complete? What further information could the ME need? Instructions?

On a side note, the private pathologist, demanded by Epstein’s attorneys, Dr. Michael Baden, was the city’s chief medical examiner in the late 1970s and has been called as an expert witness in high-profile cases including by the defense at O.J. Simpson’s 1994 murder trial.

Of course, this unusual delay will merely spur further uncertainty and the all around ‘conspiracy theory’ feel to this whole debacle.

What are the odds that Epstein’s body gets misplaced? Or accidentally cremated?

Now Michael Snyder gives us 7 unanswered questions concerning Epstein’s death that the mainstream media is just ignoring.
(Michael Snyder)

7 Unanswered Questions About Epstein’s Death That The Mainstream Media Is Not Talking About

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

Did Jeffrey Epstein commit suicide or was he murdered?  This is a question that is being debated by millions of Americans right now, and without a doubt this is the biggest story of this news cycle.  Unfortunately, the mainstream media is already dropping the ball.  Instead of going wherever the evidence leads them, there already seems to be a tremendous effort to marginalize any explanations for his death other than “suicide”.  And it may turn out that “suicide” is where the evidence takes us, but while things are unclear we should not be afraid to ask the hard questions.

The following are 7 unanswered questions about Jeffrey Epstein’s death that the mainstream media needs to be talking about…

#1 Why are the autopsy results being delayed?  According to NBC News, the New York City medical examiner’s office is requesting “more information” before determining the cause of Epstein’s death…

The New York City medical examiner’s office said Sunday that it had completed an autopsy of the financier and accused sex trafficker Jeffrey Epstein but that it needed more information before determining the cause of death.

#2 What will the cameras show?  By now most people have heard that there were no cameras filming what was going on inside Epstein’s cell, but there were cameras filming the doors of each cell

The news of the delay to the autopsy results comes after a source told the New York Post there was no video of the moment he died in his jail cell at Metropolitan Correctional Center.

Cameras are said to film the doors to each cell which would show anyone who entered or exited, but they do not point inside.

So if someone paid a “visit” to Epstein, there should be video evidence of it.

#3 Why was Jeffrey Epstein taken off suicide watch?  After Epstein attempted to “kill himself” the first time, he was put on suicide watch, but only for a short period.  The following comes from CNN

No. Epstein was temporarily placed on a suicide watch after he was found in his jail cell July 23 with marks on his neck, a law enforcement source and a source familiar with the incident told CNN at the time.

It wasn’t clear whether those injuries, which were not serious, were self-inflicted or the result of an assault, the sources said. Epstein told authorities he had been beaten up and called a child predator, they said.

#4 Why did the guards break prison rules and not check on him every 30 minutes?  Apparently these guards had been working a lot of overtime, but that is no excuse for breaking prison rules

Epstein should have been checked on by guards in his cell every 30 minutes, but that didn’t happen the night before his apparent suicide, a law enforcement official told the Times.

The Times spoke to the official on the condition of anonymity. The Associated Press has not independently confirmed the information.

A law enforcement source also said he was alone in his cell Saturday night after his cellmate was transferred. An official with knowledge of the investigation told the Times that the Justice Department was told Epstein would have a cellmate and be monitored by a guard every 30 minutes.

#5 Why would Jeffrey Epstein try to kill himself if he was adjusting so well to prison life?  According to a “prison insider” interviewed by the Daily Mail, Epstein “seemed to be in good spirits” just before his life ended…

The insider, who had seen the disgraced financier on several occasions during his incarceration at the Metropolitan Correctional Center, also claims that the normally reserved Epstein seemed to be in good spirits.

‘There was no indication that he might try to take his own life,’ the source told DailyMail.com.

‘From what I saw, he was finally starting to adjust to prison. I think he was comforted by the rigidity of his new life.’

#6 Why did Jeffrey Epstein tell guards that someone was trying to kill him?  It has been reported by the mainstream media that Epstein previously tried to kill himself, but apparently that report was being directly contradicted by Epstein himself.  Of course it is entirely possible that Epstein was lying, but according to multiple reports he claimed that someone had tried to kill him

The 66-year-old convicted sex offender reportedly told guards and fellow inmates he believed someone was trying to kill him.

The multimillionaire, who was being held on sex trafficking charges at the Metropolitan Correctional Center in Manhattan, had previously been on suicide watch.

#7 How could Epstein kill himself in a prison where the cells had been specifically designed to prevent that from happening?  I shared this quote in another article that I just posted, but it is deeply relevant to this article as well.  According to a former inmate of the Metropolitan Correction Center in lower Manhattan that was just interviewed by the New York Post, there is no way that Epstein would have been able to hang himself

There’s no way that man could have killed himself. I’ve done too much time in those units. It’s an impossibility.

Between the floor and the ceiling is like eight or nine feet. There’s no way for you to connect to anything.

You have sheets, but they’re paper level, not strong enough. He was 200 pounds — it would never happen.

Everything in these cells was designed to keep hanging deaths from happening, but that is not the only way that prisoners kill themselves.

According to a study cited by the Los Angeles Times, over 90 percent of all prison suicides are hangings, and drug overdoses are the second most common cause…

According to news reports, Epstein was not on suicide watch when he died, but even if he had been the outcome might have been the same. A study by the U.S. Marshal Service found that about 8% of suicides in correctional facilities occurred even though an inmate was on suicide watch. According to the report, the vast majority of suicides (more than 90%) are hangings, with the second most common being drug overdoses.

So is it possible that Epstein could have come up with a way to kill himself?

Yes, although it wouldn’t have been easy.  Epstein was certainly a miserable human being, and without anything positive to live for, he probably imagined that he would rot away in a prison cell for the rest of his life.

In the end, it definitely would not be a surprise if someone in his position chose the cowardly route of committing suicide.

But without a doubt, something doesn’t smell right here.

There were reports that Epstein was willing to start testifying against his rich and powerful friends, but now that will never happen.

It is clear that there are certain people that have greatly benefited from his death, and in many of those cases it appears that justice will probably never be served.

end

The complete list of Clinton associates who have allegedly died mysteriously or committed suicide before testimony was given

(Gateway)

Complete List Of Clinton Associates Who Allegedly Died Mysteriously Or Committed Suicide Before Testimony

Authored by Jim Hoft via GatewayPundit.com,

On Saturday multimillionaire Jeffrey Epstein, the highest profile prisoner in US custody, was found dead in his prison cell in Manhattan.

This occurred the day after two thousand previously sealed court documents involving the Jeffrey Epstein child sex abuse case were released to the public.

 

The documents described how Bill Clinton held a private party on Jeffrey Epstein’s pedophile island.

Clinton made at least 27 times trips on Jeffrey Epstein’s private plane. Most of those flights were with underage girls.

Despite a previous attempt on his life just three weeks ago the prison guards skipped the 30 minute required checks on Epstein’s cell last night.

Early yesterday morning they found him dead.

Jeffrey Epstein is the latest in a long list of Clinton family associates and acquaintances who died mysteriously or committed suicide before their public testimony.

In 2016 CBS Las Vegas posted a list of Bill and Hillary Clinton associates alleged to have died under mysterious circumstances.

Here is that list.

1- James McDougal – Clintons convicted Whitewater partner died of an apparent heart attack, while in solitary confinement. He was a key witness in Ken Starr’s investigation.

2 – Mary Mahoney – A former White House intern was murdered July 1997 at a Starbucks Coffee Shop in Georgetown .. The murder …happened just after she was to go public w:th her story of sexual harassment in the White House.

3 – Vince Foster – Former White House counselor, and colleague of Hillary Clinton at Little Rock’s Rose Law firm. Died of a gunshot wound to the head, ruled a suicide.

4 – Ron Brown – Secretary of Commerce and former DNC Chairman. Reported to have died by impact in a plane crash. A pathologist close to the investigation reported that there was a hole in the top of Brown’s skull resembling a gunshot wound. At the time of his death Brown was being investigated, and spoke publicly of his willingness to cut a deal with prosecutors. The rest of the people on the plane also died. A few days later the Air Traffic controller commited suicide.

5 – C. Victor Raiser, II – Raiser, a major player in the Clinton fund raising organization died in a private plane crash in July 1992.

6 – Paul Tulley – Democratic National Committee Political Director found dead in a hotel room in Little Rock , September 1992. Described by Clinton as a “dear friend and trusted advisor”.

7 – Ed Willey – Clinton fundraiser, found dead November 1993 deep in the woods in VA of a gunshot wound to the head. Ruled a suicide. Ed Willey died on the same day his wife Kathleen Willey claimed Bill Clinton groped her in the oval office in the White House. Ed Willey was involved in several Clinton fund raising events.

8 – Jerry Parks – Head of Clinton’s gubernatorial security team in Little Rock .. Gunned down in his car at a deserted intersection outside Little Rock Park’s son said his father was building a dossier on Clinton He allegedly threatened to reveal this information. After he died the files were mysteriously removed from his house.

9 – James Bunch – Died from a gunshot suicide. It was reported that he had a “Black Book” of people which contained names of influential people who visited prostitutes in Texas and Arkansas

10 – James Wilson – Was found dead in May 1993 from an apparent hanging suicide. He was reported to have ties to Whitewater..

11 – Kathy Ferguson – Ex-wife of Arkansas Trooper Danny Ferguson, was found dead in May 1994, in her living room with a gunshot to her head. It was ruled a suicide even though there were several packed suitcases, as if she were going somewhere. Danny Ferguson was a co-defendant along with Bill Clinton in the Paula Jones lawsuit Kathy Ferguson was a possible corroborating witness for Paula Jones.

12 – Bill Shelton – Arkansas State Trooper and fiancee of Kathy Ferguson. Critical of the suicide ruling of his fiancee, he was found dead in June, 1994 of a gunshot wound also ruled a suicide at the grave site of his fiancee.

13 – Gandy Baugh – Attorney for Clinton’s friend Dan Lassater, died by jumping out a window of a tall building January, 1994. His client was a convicted drug distributor.

14 – Florence Martin – Accountant & sub-contractor for the CIA, was related to the Barry Seal, Mena, Arkansas, airport drug smuggling case. He died of three gunshot wounds.

15 – Suzanne Coleman – Reportedly had an affair with Clinton when he was Arkansas Attorney General. Died of a gunshot wound to the back of the head, ruled a suicide. Was pregnant at the time of her death.

16 – Paula Grober – Clinton’s speech interpreter for the deaf from 1978 until her death December 9, 1992. She died in a one car accident.
17 – Danny Casolaro – Investigative reporter, investigating Mena Airport and Arkansas Development Finance Authority. He slit his wrists, apparently, in the middle of his investigation.

18 – Paul Wilcher – Attorney investigating corruption at Mena Airport with Casolaro and the 1980 “October Surprise” was found dead on a toilet June 22, 1993, in his Washington DC apartment had delivered a report to Janet Reno 3 weeks before his death.

19 – Jon Parnell Walker – Whitewater investigator for Resolution Trust Corp. Jumped to his death from his Arlington ,Virginia apartment balcony August 15, 1993. He was investigating the Morgan Guaranty scandal.

20 – Barbara Wise – Commerce Department staffer. Worked closely with Ron Brown and John Huang. Cause of death: Unknown. Died November 29, 1996. Her bruised, naked body was found locked in her office at the Department of Commerce.

21 – Charles Meissner – Assistant Secretary of Commerce who gave John Huang special security clearance, died shortly thereafter in a small plane crash.

22 – Dr. Stanley Heard – Chairman of the National Chiropractic Health Care Advisory Committee died with his attorney Steve Dickson in a small plane crash. Dr. Heard, in addition to serving on Clinton ‘s advisory council personally treated Clinton’s mother, stepfather and brother.

23 – Barry Seal – Drug running TWA pilot out of Mena Arkansas, death was no accident.

24 – Johnny Lawhorn, Jr. – Mechanic, found a check made out to Bill Clinton in the trunk of a car left at his repair shop. He was found dead after his car had hit a utility pole.

25 – Stanley Huggins – Investigated Madison Guaranty. His death was a purported suicide and his report was never released.

26 – Hershell Friday – Attorney and Clinton fundraiser died March 1, 1994, when his plane exploded.

27 – Kevin Ives & Don Henry – Known as “The boys on the track” case. Reports say the boys may have stumbled upon the Mena Arkansas airport drug operation. A controversial case, the initial report of death said, due to falling asleep on railroad tracks. Later reports claim the 2 boys had been slain before being placed on the tracks. Many linked to the case died before their testimony could come before a Grand Jury.

THE FOLLOWING PERSONS HAD INFORMATION ON THE IVES/HENRY CASE:

28 – Keith Coney – Died when his motorcycle slammed into the back of a truck, 7/88.

29 – Keith McMaskle – Died, stabbed 113 times, Nov, 1988

30 – Gregory Collins – Died from a gunshot wound January 1989.

31 – Jeff Rhodes – He was shot, mutilated and found burned in a trash dump in April 1989.

32 – James Milan – Found decapitated. However, the Coroner ruled his death was due to natural causes”.

34 – Richard Winters – A suspect in the Ives/Henry deaths. He was killed in a set-up robbery July 1989.

THE FOLLOWING CLINTON BODYGUARDS ARE ALSO DEAD

35 – Major William S. Barkley, Jr.

36 – Captain Scott J . Reynolds

37 – Sgt. Brian Hanley

38 – Sgt. Tim Sabel

39 – Major General William Robertson

40 – Col. William Densberger

41 – Col. Robert Kelly

42 – Spec. Gary Rhodes

43 – Steve Willis

44 – Robert Williams

45 – Conway LeBleu

46 – Todd McKeehan

And the most recent, Seth Rich, the DC staffer murdered and “robbed” (of nothing) on July 10. Wikileaks founder Assange claims he had info on the DNC email scandal.

Not Included in this list are the 4 heroes killed in Benghazi.

And now you can add multi-millionaire Jeffrey Epstein to the list…

end

“Something Doesn’t Smell Right” – AG Barr Blasts Epstein Prison For “Serious Irregularities”

Update (1100ET): Attorney General Bill Barr has made his first statement since Jeffrey Epstein’s death, promising that he will get t the bottom of the situation because Epstein’s victims “deserve justice… and they will get it.”

Furthermore, Barr said during a speech in New Orleans, that the Epstein case was “was personally important to him,” and that Epstein’s prison “had serious irregularities.”

*  *  *

The severely understaffed corrections officers at the Metropolitan Correctional Center in NYC where Jeffrey Epstein was found hanging in his cell Saturday morning violated prison protocol by not checking on the high-profile inmate – who had recently attempted suicide by hanging and had been found with ligature marks around his neck – every 30 minutesaccording to the Washington Post.

In fact, corrections didn’t check on Epstein for several hours before he was found dead at7:30 am on Saturday.

EO Young, the national president of the Council of Prison Locals C-33, said that while cameras are prevalent in the facility, he did not believe they generally captured inmates’ cells. Because of this, the NY Post reported over the weekend, there was no surveillance video showing Epstein in the act of killing himself.

Though there are cameras in the 9 South wing where the convicted pedophile was being held, they are trained on the areas outside the cells and not inside, according to sources familiar with the setup there.

The Federal Bureau of Prisons said Saturday that lifesaving measures were “initiated immediately” after Epstein was found, and emergency responders were summoned right away, but it was too little, too late, and Epstein was pronounced dead at the scene.

The fact that such a high profile inmate was able to kill himself, particularly after having been placed on suicide watch after a July 23 where he was found with marks on his neck (he was taken off suicide watch about a week later) is particularly jarring, considering that he should have been subject to constant monitoring and daily psychological evaluations. After the incident he was moved to a special unit where it should have been easier to monitor him, and where he should have had a cellmate – though at the time of death Epstein was in his cell alone.

But Young, the Council of Prisons Local president, said that Epstein’s case highlighted a grim reality for the MCC’s prison guards.

“We can’t ever stop anyone who is persistent on killing themselves,” Young said. “The only thing the bureau can do is delay that.”

That grim reality is a byproduct of the fact that the Trump Administration had implemented a hiring freeze for the federal bureau of prisons.

“All this was caused by the administration,” Young said.

Attorney General William Barr even conceded the bureau was “short” about 4,000 or 5,000 employees, and that he had lifted the freeze to try and ensure a steady flow of new employees.

“I think this is an area where we have stumbled,” Barr said.

But other local politicians noted that – considering the timing of Epstein’s death (after a document dump that implicated other high profile individuals who had sought Epstein’s services)  – something about Epstein’s death just didn’t add up.

“Something doesn’t smell right – and it’s not his dead body,”‘ said Brooklyn Borough President Eric Adams.

Some of the men exposed in the documents included Maine Sen. George Mitchell and ex-New Mexico Gov. Bill Richardson, who allegedly slept with a teenage “Sex Slave” who is spearheading civil litigation against Epstein.

New York AG Letitia James said  she found it “very difficult to understand how something like this could have happened.”

“My understanding is that he should have been on suicide watch and the people on suicide watch are placed in a type of jumpsuit that wouldn’t allow them to hurt themselves or others,” she said.

Of course, with Epstein gone, many of those who received his services can breath a sigh of relief knowing that their names won’t come out during what likely would have been a high profile trial, though they could still be exposed through civil litigation.

And with the multiple investigations into Epstein’s death, as one individual put it: “heads will roll”. But will some of Eptein’s most high-profile associates – people like Bill Clinton – get away unbesmirched? That’s the big question.

end

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

After an irrational rally during the end of the Nikkei’s 1st session due to an innocuous PBoC assertion about being ‘capable of keeping the yuan stable’, ESUs sank during the Nikkei’s 2nd session.

Asian bourse weakness was due to another Chinese bank rescue.

Unit of China’s sovereign wealth fund takes over Xiao Jianhua-linked HengFeng Bank in third case of nationalisation since May – HengFeng, based in Yantai city, was founded in 1987. It operated 18 branches and 306 sub-branches across the country…   https://www.scmp.com/business/banking-finance/article/3022056/unit-chinas-sovereign-wealth-fund-takes-over-xiao-jianhua

HSBC Greater China chief Wong leaves for external role

Greater China Chief Executive Helen Wong is leaving… the second senior departure this week after the ousting of group CEO John Flint… Flint and Wong’s exit also follows weeks of adverse Chinese media coverage over HSBC’s role in the arrest of Huawei finance chief Meng Wanzhou… https://www.reuters.com/article/us-hsbc-hldg-china-ceo/hsbc-greater-china-chief-wong-leaves-for-external-role-idUSKCN1UZ1KR

@Jkylebass: Wow – trouble brewing at HSBC. Remember, HSBC HK is ring-fenced and is bankruptcy remote. UK regulators aren’t going to bail out this leverage . Depositors in HK better PAY ATTENTION. Better convert deposits to USD and wire them to an institution with a real backstop.

Steve Eisman says Hong Kong protests are his biggest worry with economy, a possible ‘black swan’

If things escalate even further in Hong Kong, that would have a real impact back on the global economy… “The people who are protesting are not backing down, the Chinese government doesn’t seem to be backing down, so if cooler heads don’t prevail it’s possible things in Hong Kong could get very ugly.”…  https://www.cnbc.com/2019/08/08/steve-eisman-says-hong-kong-protests-are-his-biggest-worry-with-economy-a-possible-black-swan.html

Hong Kong Protesters Descend on Airport, With Plans to Stay for Days [Solidarność in 1980?]

https://www.nytimes.com/2019/08/09/world/asia/hong-kong-airport-protest.html

Is China’s concern over a possible US dollar shortage risk forcing companies to sell overseas assets?

China’s need for US dollars to repay debts, pay for imports and fund Belt and Road initiative projects may exceed its US$3.1 trillion in foreign exchange reserves  [Story published June 19, 2019]https://www.scmp.com/economy/china-economy/article/3015049/chinas-concern-over-possible-us-dollar-shortage-risk-forcing

The standard rally into the European open, after an ESU decline to close Asian trading, was modest.  ESUs and European stocks dropped to begin the day because of negative growth in the UK.

First U.K. Contraction since Wake of Crisis Raises Brexit Stakes

Unexpected 0.2% decline in GDP during the second quarter, the worst performance since 2012…  https://www.bloomberg.com/news/articles/2019-08-09/u-k-economy-unexpectedly-shrinks-for-first-time-since-2012

The ESU decline continued until the rally to game the NYSE open commenced at 7:39 ET.  ESUs surged 18 handles by 9:34 ET; but Trump happened.

Trump says China Trade Talks Set for September Might Not Happen

“We’ll see whether or not we keep our meeting in September,” Trump said as he left the White House Friday for a fundraiser in the Hamptons. “If we do, that’s fine. If we don’t, that’s fine.”…

https://www.bloomberg.com/news/articles/2019-08-09/trump-says-china-talks-going-very-well-even-as-tensions-rise

Trump again hectored the Fed, saying he “would love to see” the Fed cut rates by a full percentage point.  La Grande Orange added, “We are being handcuffed by the Federal Reserve.”  The market ignored him.

Trump says U.S. economy ‘handcuffed’ by Fed, wants further rate cut

https://finance.yahoo.com/news/1-trump-says-u-economy-144138199.html

Trump generated a 28-handle ESU tumble that ended just after the first hour of trading.  Operators then played for the second-hour reversal. It aborted before 11:00 ET; ESUs sank to a new low.  Traders then attempted to engineer a Noon Balloon.  Traders could not get liftoff for the Noon Balloon until Team Trump came to the rescue with 20 minutes remaining in the noon hour.

Fox’s @EdwardLawrence: White House now clarifying the President when he says “we’re not doing business with Huawei” says President referring to ONLY the ban on Federal Departments buying from Huawei. White House Official says Commerce Dept Process for special licenses still going forward

With the appearance of the regular Team Trump positive verbal intervention on Friday, the afternoon rally prior to expiration week appeared in all its glory!  ESUs and stocks went inert for 90 minutes.  When the last hour appeared, the usual late ESU manipulation began.   Alas, the entire last-hour rally was rescinded during the final 17 minutes of trading.

This time it truly is different: The markets have been at the mercy of tweets and news bits, many of which are fake news or dubious for months.  Yet, algos and lemmings act without thinking.  This has created sudden spasms and movements that diminish the efficacy of value-added money management and professional trading.  The stock market, particularly, is now a game of chance, a parlor game.

Core U.S. Producer-Price Index Posts First Drop in Two Years [Where’s the tariff inflation?]

Excluding food and energy, producer prices dropped 0.1% from the prior month, compared with projections for a 0.1% gain, a Labor Department report showed Friday. The 2.1% annual increase was the slowest in two years. The overall producer-price index rose 0.2% from June, matching projections…

https://www.bloomberg.com/news/articles/2019-08-09/core-u-s-producer-price-index-posts-first-decline-in-two-years

Disneyland’s Star Wars flops, now employees getting hours cut

https://www.foxbusiness.com/personal-finance/disneyland-slashing-worker-hours-star-wars-flops-source

UBS’s Rich Clients to Feel Negative Rates as Fees Extended [The ECB is killing its banks with ZIRP]

  • Bank lowers fee threshold to 500,000 euros from 1 million [for annual fee of 0.6%]
  • Low rates, stimulus putting pressure on banking margins

https://www.bloomberg.com/news/articles/2019-08-06/ubs-to-charge-wealthy-clients-for-euro-accounts-above-500-000

Navarro says US will take strong action against China if it devalues yuan to ‘neutralize tariffs’

https://www.cnbc.com/2019/08/09/peter-navarro-says-us-will-take-strong-action-against-china-if-it-devalues-yuan-to-neutralize-tariffs.html

Today – The S&P 500 Index had an Inside Day on Friday.  Traders will be sensitive to the high (2935.75) and low (2900.15). This is expiry week; traders will play for the usual manipulation to squeeze SPY call options.  However, as everyone should know by now, a tweet, news bit or quote can send stocks flying or tumbling at any moment.  Ergo, this is an extremely dangerous environment for traders & schemers.

The PBoC set the yuan reference rate at 7.0211 when 7.029 was expected.  ESUs are +7.00 at 21.35 ET. Trained seals traders are ignoring China’s slow-motion financial implosion and the Hong Kong rebellion to play the Monday rally and the upward expiry week manipulation patterns.

The S&P 500 Index 50-day MA: 2936; 100-day MA: 2904; 150-day MA: 2842; 200-day MA: 2793

The DJIA 50-day MA: 26,549; 100-day MA: 26,291; 150-day MA: 25,920; 200-day MA: 25,570

S&P 500 Index support: 2918, 2908, 2900, 2894, 2880, 2860, 2847-50, 2840, 2830-32, 2822-25, 2810

Resistance: 2936, 2945, 2955, 2963, 2970, 2980, 2990, 3000

Expected economic data: July Budget Statement -$123.0B

Jeffrey Epstein Sent Girl to [Dem] Governor and [Dem Maj. Leader] Senator for Sex, She Testified

Bill Richardson, George Mitchell, Glenn Dubin deny allegations [court release of Epstein documents]

https://www.bloomberg.com/news/articles/2019-08-09/epstein-sent-girl-to-governor-and-senator-for-sex-she-testified

Statement from Attorney General William P. Barr on the Death of Jeffrey Epstein

I was appalled to learn that Jeffrey Epstein was found dead early this morning from an apparent suicide while in federal custody. Mr. Epstein’s death raises serious questions that must be answered. In addition to the FBI’s investigation, I have consulted with the Inspector General who is opening an investigation into the circumstances of Mr. Epstein’s death.”

@WSJ: Attorney General Barr was “livid” to learn about Jeffrey Epstein’s death, telling staffers he is determined to get to the bottom of what happened, a person familiar said.

The WaPo’s @CarolLeonnig: People close to Epstein fear he was murdered…as Epstein told authorities someone tried to kill him in a previous incident weeks earlier. He was described as being in good spirits in recent days…       https://www.washingtonpost.com/national-security/jeffrey-epstein-kills-himself-in-jail-according-to-media-reports/2019/08/10/a3d48862-bb73-11e9-b3b4-2bb69e8c4e39_story.html

Jeffrey Epstein told guards weeks before he hanged himself that someone tried to KILL HIM

https://www.dailymail.co.uk/news/article-7344785/Jeffrey-Epstein-told-guards-tried-KILL-weeks-hanged-himself.html

AnnCoulter on July 25, 2019: Dear Bureau of Prisons: Please get Jeffrey Epstein to a super Max prison pronto, or the people who want him dead will make sure we never know the truth. ACT NOW!

Reuters: He was on suicide watch as late as Thursday, the source said… At the MCC, two jail guards are required to make separate checks on all prisoners every 30 minutes, but that procedure was not followed overnight, according to the source…

https://www.reuters.com/article/us-people-jeffrey-epstein/disgraced-u-s-financier-jeffrey-epstein-killed-himself-in-jail-source-idUSKCN1V00GM

CNN’s @VickyPJWard: “According to a person familiar with the Bureau of Prison’s procedures, the cells are equipped with video monitoring, which an officer monitors around the clock.”

NY Post: There’s no video of Jeffrey Epstein’s apparent suicide: sources   https://trib.al/MwwewhH

@OANN: 2 of Jeffrey Epstein’s longtime attorneys (Darren Indyke & Jeff Schantz) have hired criminal defense attorneys, a sign they’re preparing for government scrutiny of Epstein’s companies and finances.

Trump retweets Epstein conspiracy theory, claiming Clinton connection

https://www.nbcnews.com/politics/donald-trump/trump-retweets-epstein-conspiracy-theory-claiming-clinton-connection-n1041146

People from the left and the right voiced outrage and skepticism about Epstein on social media.

The Claremont Institute’s @docMJP: The takeaway of the Epstein story from start to finish is simple. There is no rule of law for our ruling class, and the society you live in is far more corrupt and incompetentthan you have been taught to think.

Georgetown Law Prof. @RandyEBarnett: “It’s a good thing public faith in institutions was already in the toilet or this episode really might have shaken it.”

Journos’ debunker mentality: Rush to rip conspiracy talk [Cuz big-name Dems might be involved]

It’s all especially rich, given the fact that many of these same journalists have spent the past two years feverishly promoting the “collusion” theory…

https://nypost.com/2019/08/11/journos-debunker-mentality-rush-to-rip-conspiracy-talk/

Rep. Nadler: Formal impeachment proceedings are underway [to find evidence to impeach]

He added, the committee will decide by the end of the year whether to bring articles of impeachment to the House floor…     https://www.oann.com/rep-nadler-formal-impeachment-proceedings-are-underway/

Trump on Friday after reporters asked him to respond to Joe’s racist ‘poor kids’ gaffe in Iowa: “Joe is not playing with a full deck.  This is not somebody you can have as your president. But, if he got the nomination I’d be thrilled.”   https://twitter.com/CBSNews/status/1159839982518800387

Biden campaign aide’s response: “Donald Trump’s deck is all jokers.”

Apparently, the WaPo is alarmed about Biden: Joe Biden’s mounting slip ups and why they matter

The “white kids” comment can’t help but conjure other moments in which Biden said things that were viewed as racially insensitive and stereotypes. The most infamous example was in 2007 when he called Barack Obama “the first mainstream African American [presidential candidate] who is articulate and bright and clean and a nice-looking guy.” He also joked in 2006 that, “You cannot go to a 7-Eleven or a Dunkin’ unless you have a slight Indian accent.” … It might also be time to question some long-held assurances Democrats have apparently had about Biden’s superior electability.

https://www.washingtonpost.com/politics/2019/08/09/joe-bidens-mounting-slip-ups-why-they-matter/?noredirect=on

Biden Misdates 2018 Parkland Shooting in His Latest Blunder [on Saturday]

  • Democrat frontrunner claims he was vice president at the time
  • Deadly attack at school happened after Biden had left office

“Those kids in Parkland came up to see me when I was vice president.”

https://www.bloomberg.com/news/articles/2019-08-10/biden-says-he-was-vice-president-during-the-parkland-shooting

Pat Buchanan: Biden Goes All In on the Race Issue

In George Wallace’s salad days, Joe sang a different tune, telling the Philadelphia Inquirer on Oct. 12, 1975: “I think the Democratic Party could stand a liberal George Wallace — someone who’s not afraid to stand up and offend people, someone who wouldn’t pander but would say what the American people know in their gut is right.”…   https://buchanan.org/blog/biden-goes-all-in-on-the-race-issue-137393

Joe created another episode on Friday.

@RealSaavedra: A girl just had the following interaction with Joe Biden:

Girl: “How many genders are there?”   Biden “There are at least 3”

Girl: “What are they?”  Biden: “Don’t play games with me kid”

She says that as she was leaving that Biden forcefully grabbed her

https://twitter.com/RealSaavedra/status/1159884112825466881

@realDonaldTrump: Liberal Hollywood is Racist at the highest leveland with great Anger and Hate! They like to call themselves “Elite,” but they are not Elite. In fact, it is often the people that they so strongly oppose that are actually the Elite. The movie coming out is made in order to inflame and cause chaos. They create their own violence, and then try to blame others. They are the true Racists, and are very bad for our Country!

All the news that the MSM finds fit to omit

Majority of Blacks and Hispanics Support Presidential Candidates Who Are against Illegal Immigration: [Harvard/Harris X] Poll [A reason for the incessant ‘racist’ labeling of Trump]

Asked if they would support a candidate who was focused on “strengthening our border to reduce illegal immigrants,” 70 percent said they were likely, including 61 percent of Hispanics, 63 percent of blacks, and 69 percent of Independents…

https://www.theepochtimes.com/majority-of-blacks-and-hispanics-support-presidential-candidates-who-are-against-illegal-immigration-poll_3034661.html

@larryelder: According to the latest Rasmussen Poll, Donald Trump’s approval rating among blacks is…32%!  http://www.rasmussenreports.com/public_content/politics/general_politics/july_2019/trump_support_up_this_week_among_black_voters

Bruce Ohr [302] Documents Undercut FBI Claims in Carter Page FISAs

During a Nov. 22, 2016 interview with the FBI, Ohr discussed meetings between dossier author Christopher Steele, Fusion GPS founder Glenn Simpson and Yahoo! News reporter Michael Isikoff, who two months earlier had published an article that alleged that Page was under FBI investigation for contacts in Russia.  The potential problem for the FBI is that the bureau said in four Foreign Intelligence Surveillance Act (FISA) warrant applications against Page that investigators did not believe that Steele was a source for Isikoff’s story…  https://dailycaller.com/2019/08/09/bruce-ohr-transcript-carter-page-fisa-fbi/

paulsperry_: So now we know Christopher Steele [from Ohr’s 302s] was in contact w Sen. McCain’s office PRIOR to the election. McCain was best buds w Sen Lindsey Graham… Did McCain & Graham discuss the dossier? Is this why Graham hasn’t held any Senate Judiciary hearings over #Spygate?

FBI: Hundreds of Bureau Agents Took Bribes from CNN, NY Times, NBC News and More; Wray Looks the Other Way to Protect Media Partners – Concert tickets. Expensive private dinners. NFL tickets. Parties on booze cruises. Discounts on travel.

    FBI insiders said more than 60 agents in D.C. alone have been nailed for taking gifts from the news media. Inspector General Michael Horowitz said earlier this week about 50 FBI agents took 300 free gifts from news media…    https://truepundit.com/fbi-hundreds-of-bureau-agents-took-bribes-from-cnn-ny-times-nbc-news-and-more-wray-looks-the-other-way-to-protect-media-partners/

Sara Carter: Two Tiered System of Justice: Top FBI Officials Escape Prosecution, While Others Pay Heavy Price

https://saraacarter.com/two-tiered-system-of-justice-top-fbi-officials-escape-prosecution-while-others-pay-heavy-price/

Oprah on Mass Shootings: We’ll Be Lost until America Finds the ‘Moral Center’ Churches Used to Provide

https://www.breitbart.com/entertainment/2019/08/07/oprah-on-mass-shootings-well-be-lost-until-america-finds-the-moral-center-churches-used-to-provide/

Europe Poised to Put Warning Labels on Jewish-Made Products

The decision was seen as a major win for supporters of the anti-Semitic Boycott, Divestment, and Sanctions movement, or BDS, which seeks to wage economic warfare on Israel and its citizens…

   The legal dispute first began after France passed a law mandating that products made in the West Bank territory of Israel be labeled as coming from an “Israeli colony,” a label not applied to any other products across the globe… A State Department spokesman told the Free Beacon that the Trump administration has been clear in its objection to the BDS movement and efforts to single out the Jewish state…

https://freebeacon.com/national-security/europe-poised-to-put-warning-labels-on-jewish-made-products/

If Epstein’s suicide is due to gross government incompetence, why should we trust government to administer and manage the really big, complex stuff?

Well that is all for today

I will see you Tuesday night.

 

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One comment

  1. Today’s commentary said, “We have been highlighting to you on several occasions, China’s attempt to hoard gold and oil. It seems that they are now eager to hoard food and other commodities in anticipation of a global collapse.”

    “Hoard” means to not share goods after they become scarce. I suspect that “stockpile,” which means to increase one’s holdings of goods that are still readily available, was meant. The word “hoard” is often deliberately misapplied in order to marginalize those who stockpile. I doubt this was your intent, but I’d like to see these terms used more accurately. Thanks.

    Like

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