AUGUST 23/CHINA INITIATES TARIFFS//TRUMP THROWS A TANTRUM//THE KING OF KLOWNS ON K STREET CONTINUES TO FUDDLE AROUND AND THUS WE HAVE: GOLD UP $28.50 TO $1527.30//SILVER IS UP 37 CENTS TO $17.43//TODAY’S EVENTS WERE BASICALLY CHINA VS THE USA//HUGE SWAMP STORIES FOR YOU TONIGHT AS WELL/

GOLD:$1527.30 UP $28.50(COMEX TO COMEX CLOSING

 

 

 

 

 

 

 

 

 

 

Silver:$17.43 UP 37 CENTS  (COMEX TO COMEX CLOSING)/

 

 

 

Closing access prices:

 

 

Gold : $1527.40

 

silver:  $17.42

option trading silver:

We are now entering options expiry week for the comex which ends , August 27.2019

OTC/ LBMA expires on Friday, the 30th.

 

Last night when I got the preliminary and final efp numbers I knew something was up when they reported a massive queue jumping in gold of 503 contracts  or 50300 oz  (1.56 tonnes).  You never see this unless there are burning fires elsewhere.  Judging from the Swiss data showing massive imports of gold from Switzerland, you kind of know where the fires are located. It sure looks like we got our short squeeze in silver. Monday is the final day before Comex options expiry so the day should be exciting to watch.
The rapid rise in precious metal prices will without a doubt play havoc to our derivative banks. We should pay close attention to:
1. Deutsche bank
2. General Electric
3. HSBC
and now your report for this evening:

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 25/63

EXCHANGE: COMEX
CONTRACT: AUGUST 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,497.300000000 USD
INTENT DATE: 08/22/2019 DELIVERY DATE: 08/26/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
118 H MACQUARIE FUT 27
661 C JP MORGAN 18
661 H JP MORGAN 7
686 C INTL FCSTONE 30 2
737 C ADVANTAGE 30 9
905 C ADM 3
____________________________________________________________________________________________

TOTAL: 63 63
MONTH TO DATE: 6,393

NUMBER OF NOTICES FILED TODAY FOR  AUGUST CONTRACT: 63 NOTICE(S) FOR 6300 OZ (0.1959 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  6393 NOTICES FOR 639,300 OZ  (19.884 TONNES)

 

 

 

SILVER

 

FOR AUGUST

 

 

0 NOTICE(S) FILED TODAY FOR NIL  OZ/

 

total number of notices filed so far this month: 1996 for   9,880,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 10134 UP 33 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 10372 UP 277

 

 

 

Let us have a look at the data for today

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IN SILVER THE COMEX OI ROSE BY A STRONG  SIZED 1200 CONTRACTS FROM 234,447 UP TO 235,647 DESPITE THE 11 CENT LOSS IN SILVER PRICING AT THE COMEX.

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

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

0 FOR AUGUST, 2305 FOR SEPT, DEC: 99 AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  2404 CONTRACTS. WITH THE TRANSFER OF 2404 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 2404 EFP CONTRACTS TRANSLATES INTO 12.02 MILLION OZ  ACCOMPANYING:

1.THE 11 CENT LOSS IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

9.980   MILLION OZ INITIAL STANDING IN AUGUST.

 

WE HAD ATTEMPTED COVERING OF SHORTS AT THE SILVER COMEX LAST NIGHT WITH ZERO SUCCESS..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:

31,752 CONTRACTS (FOR 17 TRADING DAYS TOTAL 31,752 CONTRACTS) OR 158.76 MILLION OZ: (AVERAGE PER DAY: 1867 CONTRACTS OR 9.338 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF AUGUST:  158.76 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 22.68% 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:          1471.28   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 STRONG SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1147, DESPITE THE 11 CENT LOSS IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  HUGE SIZED EFP ISSUANCE OF 2404 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) .

 

TODAY WE GAINED A VERY STRONG  SIZED: 3604 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 2404 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 1200  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 11 CENT LOSS IN PRICE OF SILVER AND A CLOSING PRICE OF $17.06 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. 1.177 BILLION OZ TO BE EXACT or 168% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 0 NOTICE(S) FOR NIL OZ OF SILVER

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

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

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ  MAY: 36.285 MILLION OZ ; JUNE/2018  (5.420 MILLION OZ) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   )  FOR AUGUST 6.065 MILLION OZ. , SEPT:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./ DEC. AT 21.925 MILLION OZ   JANUARY AT  5.825 MILLION OZ.AND FEB 2019:  2.955 MILLION OZ/ MARCH: 27.120 MILLION OZ/  APRIL AT 3.875 MILLION OZ/ A MAY:  18.845 MILLION OZ ..JUNE 2.660 MILLION OZ//JULY 22.605 MILLION OZ; AUGUST 9.980 MILLION OZ
  2. HUGE RECORD OPEN INTEREST IN SILVER 243,411 CONTRACTS (OR 1.217 BILLION OZ/ SET APRIL 9/2018) AND NOW AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017
  4. RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

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

.

 

IN GOLD, THE COMEX OPEN INTEREST ROSE BY A STRONG SIZED 2916 CONTRACTS, TO 598,402 DESPITE THE  $6.80 PRICING LOSS WITH RESPECT TO COMEX GOLD PRICING YESTERDAY// /

THE SPREADING ACCUMULATION OPERATION IS NOW IN FULL SWING  ONLY FOR SILVER AS NOTHING WAS ACCOMPLISHED IN THAT ENDEAVOUR TODAY. LIQUIDATION OF SPREADING SILVER CONTRACTS WILL COMMENCE AROUND THE 23RD OF AUGUST….. THE LIQUIDATION( AND ACCUMULATION) PHASE FOR COMEX OI GOLD  STOPS FOR THE AUGUST CONTRACT MONTH /(THE LOSS IN COMEX SILVER OI TODAY WAS DUE TO BANKER SHORT COVERING)

 

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A FAIR SIZED 4596 CONTRACTS:

AUGUST 2019: 0 CONTRACTS, DEC>  4596 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 598,402,,.  ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A GIGANTIC SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 7512 CONTRACTS: 2916 CONTRACTS INCREASED AT THE COMEX  AND 4596 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 7512 CONTRACTS OR 7512 OZ OR 23.36 TONNES.  YESTERDAY WE HAD A STRONG LOSS OF $6.80 IN GOLD TRADING….AND WITH THAT LOSS IN  PRICE, WE  HAD A GIGANTIC GAIN IN GOLD TONNAGE OF 23.86  TONNES!!!!!! THE BANKERS WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER TO NO AVAIL . ON TOP OF THIS WAIT UNTIL YOU SEE THE MASSIVE JUMPING OF QUEUE WHICH TOOK PLACE IN THE GOLD COMEX AREA (BELOW)_

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF AUGUST : 160,765 CONTRACTS OR 16,076,500 oz OR 500.05 TONNES (17 TRADING DAY AND THUS AVERAGING: 9456 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 17 TRADING DAY IN  TONNES: 500.05 TONNES

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

THUS EFP TRANSFERS REPRESENTS 500.05/3550 x 100% TONNES =14.08% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     4010.72  TONNES

JANUARY 2019 TOTAL EFP ISSUANCE;                                     531.20 TONNES

FEB 2019 TOTAL EFP ISSUANCE:                                              344.36 TONNES

MARCH 2019 TOTAL EFP ISSUANCE:                                       497.16 TONNES

APRIL 2019 TOTAL ISSUANCE:                                                 456.10 TONNES

MAY 2019 TOTAL ISSUANCE:                                                   449.10 TONNES

JUNE 2019 TOTAL ISSUANCE:                                                  642.22 TONNES

JULY 2019: TOTAL ISSUANCE:                                                  591.56 TONNES

WHAT IS ALARMING TO ME, ACCORDING TO OUR LONDON EXPERT ANDREW MAGUIRE IS THAT THESE EFP’S ARE BEING TRANSFERRED TO WHAT ARE CALLED SERIAL FORWARD CONTRACT OBLIGATIONS AND THESE CONTRACTS ARE LESS THAN 14 DAYS.  ANYTHING GREATER THAN 14 DAYS, THESE MUST BE RECORDED AND SENT TO THE COMPTROLLER, GREAT BRITAIN TO MONITOR RISK TO THE BANKING SYSTEM.  IF THIS IS INDEED TRUE, THEN THIS IS A MASSIVE CONSPIRACY TO DEFRAUD AS WE NOW WITNESS A MONSTROUS TOTAL EFP’S ISSUANCE AS IT HEADS INTO THE STRATOSPHERE

 

Result: A STRONG SIZED INCREASE IN OI AT THE COMEX OF 2916 DESPITE THE  PRICING LOSS THAT GOLD UNDERTOOK YESTERDAY($6.80)) //.WE ALSO HAD  A GOOD SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 4596 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 4596 EFP CONTRACTS ISSUED, WE HAD AN ATMOSPHERIC AND CRIMINALLY SIZED GAIN OF 7512 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

4596 CONTRACTS MOVE TO LONDON AND 2916 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 23.36 TONNES). ..AND THIS HUGE INCREASE OF  DEMAND OCCURRED DESPITE THE STRONG LOSS IN PRICE OF $6.80 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX.

THE COMEX IS NOW UNDER FULL ASSAULT WITH RESPECT TO GOLD AND SILVER.

 

 

 

 

 

we had:  63 notice(s) filed upon for 6300 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

 

GLD...

WITH GOLD UP $28.50 TODAY//(COMEX-TO COMEX)

 

INVENTORY RESTS AT 854.84 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 37 CENTS TODAY:

 

 

 

/INVENTORY RESTS AT 383.850 MILLION OZ.

 

 

 

 

 

 

 

 

 

 

 

end

 

OUTLINE OF TOPICS TONIGHT

 

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

1. Today, we had the open interest in SILVER ROSE BY A STRONG SIZED 1200 CONTRACTS from 234,447 DOWN TO 235,647 AND CLOSER TO  THE NEW COMEX RECORD SET LAST IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  1 1/3 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.

 

 

 

 

 

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. 2305 ; DEC: 99 CONTRACTS AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2404 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE OI GAIN AT THE COMEX OF 1200  CONTRACTS TO THE 2404 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN AN ATMOSPHERIC AND CRIMINALLY SIZED GAIN OF 3604 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 18.02 MILLION OZ!!! AND YET WE ALSO HAVE A STRONG DEMAND FOR PHYSICAL AS WE WITNESSED A FINAL STANDING OF GREATER THAN 30 MILLION OZ FOR JULY, A STRONG 7.475 MILLION OZ FOR AUGUST..  A HUGE 39.505  MILLION OZ  STANDING FOR SILVER IN SEPTEMBER… OVER 2 million  OZ STANDING FOR THE NON ACTIVE MONTH OF OCTOBER.,  7.440 MILLION OZ FINALLY STANDING IN NOVEMBER.  21.925 MILLION OZ STANDING IN DECEMBER , 5.845 MILLION OZ STANDING IN JANUARY. 2.955 MILLION OZ STANDING IN FEBRUARY,  27.120 MILLION OZ FOR MARCH., 3.875 MILLION OZ FOR APRIL  18.765 MILLION OZ FOR MAY  NOW 2.660 MILLION OZ FOR JUNE WITH JULY AT 22.605 MILLION OZ AUGUST AT 9.980 MILLION OZ//

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE 11 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 2404 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

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

 

 

(report Harvey)

.

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED UP 13.99 POINTS OR 0.49%  //Hang Sang CLOSED UP 130.61 POINTS OR 0.50%   /The Nikkei closed UP 82.90 POINTS OR 0.40%//Australia’s all ordinaires CLOSED UP .32%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0830 /Oil UP TO 55.37 dollars per barrel for WTI and 59.77 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0830 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0931 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

3A//NORTH KOREA/ SOUTH KOREA

 

3b) REPORT ON JAPAN

3C  CHINA

i)As described above China is now on the warpath. They have now threatened the USA if they lowered their value of the uSA dollar vs CNY or CNH they will take punitive action

(zerohedge)

ii)Mainland China/Hong Kong

China furious at the chaotic scenes from the Hong Kong Metro station and they warn how in earth the authorities let criminals go
(zerohedge)

iii)The Hong Kong native held in Shenzen has been arrested for visiting a prostitute.We hope that this does not turn into a powder keg

(zerohedge)

iv)We reported to you that the CEO of Hong Kong based Cathay Pacific was forced out of his position by Mainland China. Now we hear that crew members are terrified.  They hide their cell phones when flights land in the Mainland.

(zerohedge)

v)Beijing furious after a USA ship enters the Taiwan Strait

(zerohedge)

vi)Graham Summers is correct on the following commentary so please pay attention.  The total of all corporate and sovereign debt denominated in USA dollars is $40 trillion of which $38 trillion  is owed to Chinese banks and other  Chinese enterprises (state owned banks).  Two trillion dollars is owed to foreign banks and this is the number that Graham Summers is harping at.The game is over when China cannot get its hands on the dollars it needs and they then need to use their official USA reserves to bail out badly needed companies.  Kyle Bass has also stated this in his latest commentaries

(courtesy Graham Summers)

4/EUROPEAN AFFAIRS

UK

My goodness, this came out of left field.. The Bank of England’s Mark Carney urges replacing the dollar with a bitcoin like reserve currency.  The problem is all paper currencies will eventually trade at its intrinsic value and value is zero

(zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

 

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

i)ETF holdings expand as investors are hoarding more gold

(Bloomberg/GATA)

ii)Seems that investors are taking the threats seriously:  the stubbornly strong dollar  is prompting talk of the USA’s attack on the Chinese yuan

(London’s Financial Times/GATA)

iii)Indian farmers, short of cash for seeds are using gold as collateral

(Reuters/GATA)

iv)We brought this important story to you yesterday but it is worth repeating:  China has relaxed its gold importing restrictions on its citizens.

(Reuters/GATA)

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

a)This is not good as collateral seems to be non existent..the loan market froze after only 5 deals totally 1,3 billion dollars was quietly pulled

(zerohedge)

b)Ruth Ginsberg

this is a tough cancer but they were able to radiate the tumour. She will go back to work.  There is no way that the Dems will allow her to retire. She will die with her job.

(zerohedge)

c)Trump retaliates and hikes tariffs on Chinese goods as the trade war escalates

(zerohedge)

iv) Swamp commentaries

a)We now have a two tiered legal system as Comey and the FBI totally ignored highly classified Hillary Clinton emails. So far Barr is silent

(zerohedge)

b)This should be interesting:  Grand jury subpoenas have been issued to 20 officers at the NY prison where Epstein died

(zerohedge)

c)As I promised you last night, there is something sinister in this. It looks like Peter Strzok approached Patrick Byrne, a protege of Buffet to have an affair with a Russian to get political espionage on Trump. He states also Clinton but I highly doubt that part.  Regardless all of the evidence has been handed over to Barr and Durham

(zerohedge)

d)What an absolute joke; Mega liar and FBI NO 2 guy who was fired by the organization for leaking and lying has been hired by CNN

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

 

LET US BEGIN:

 

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A GOOD SIZED 2916 CONTRACTS TO A LEVEL OF 598,402 DESPITE THE STRONG LOSS OF $6.80 IN GOLD PRICING WITH RESPECT TO YESTERDAY’S // COMEX TRADING)

WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF JULY..  THE CME REPORTS THAT THE BANKERS ISSUED GOOD SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 4596 EFP CONTRACTS WERE ISSUED:

 FOR AUGUST; 0 CONTRACTS: DEC: 4596   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  4596 CONTRACTS.

THE OBLIGATION STILL RESTS WITH THE BANKERS ON THESE TRANSFERS. ALSO REMEMBER THAT THERE IS NO DOUBT A HUGE DELAY IN THE ISSUANCE OF EFP’S AND IT PROBABLY TAKES AT LEAST  48 HRS AFTER OUR LONGS GIVE UP THEIR COMEX CONTRACTS FOR THEM TO RECEIVE THEIR EFP’S AS THEY ARE NEGOTIATING THIS CONTRACT WITH THE BANKS FOR A FIAT BONUS PLUS THEIR TRANSFER TO A LONDON BASED FORWARD.

ON A NET BASIS IN OPEN INTEREST WE GAINED THE FOLLOWING TODAY ON OUR TWO EXCHANGES: 7512 TOTAL CONTRACTS IN THAT 4596 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A GOOD SIZED 2916 COMEX CONTRACTS.  THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD TO CONTAIN THE PRICE RISE. 

 

NET GAIN ON THE TWO EXCHANGES ::  7512 CONTRACTS OR 751,200 OZ OR 23.36 TONNES.

 

We are now in the  active contract month of AUGUST and here the open interest stands at 1387 CONTRACTS as we GAINED AN UNBELIEVABLE 458 contracts.  We had 45 notices filed yesterday so we GAINED 503 contracts or 50,300 oz of gold that will stand for delivery AS OUR BANKER FRIENDS ARE GOING AFTER SOME OF THE GOLD THAT HAS NOT BEEN HYPOTHECATED YET. IN TONNAGE: 1.564 TONNES)

 

The next non active month is September and here the OI FELL by 477 contracts DOWN TO 3195.  The next active delivery month is October and here the OI ROSE by 243 contracts UP to 47,619.

 

 

TODAY’S NOTICES FILED:

WE HAD 63 NOTICES FILED TODAY AT THE COMEX FOR  6300 OZ. (0.1959 TONNES)

 

 

 

 

 

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And now for the wild silver comex results.

Total COMEX silver OI ROSE BY A STRONG SIZED 1200 CONTRACTS FROM 234,447 UP TO 235,647 (AND CLOSER  TO THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S CONSIDERABLE  OI COMEX GAIN OCCURRED DESPITE A 11 CENT LOSS IN PRICING.//YESTERDAY.

 

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF AUGUST.  HERE WE HAVE 0 OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 1 CONTRACTS.  WE HAD 0 NOTICES FILED YESTERDAY SO WE LOST 1 CONTRACT OR AN ADDITIONAL 5,000 OZ OF SILVER WILL  NOT STAND AT THE COMEX…. AND THESE GUYS  MORPHED INTO A LONDON BASED FORWARD AS WELL AS ACCEPTING A FIAT BONUS.

THE NEXT BIG ACTIVE DELIVERY MONTH AFTER AUGUST IS SEPT AND HERE THE OI FELL BY 12,645 CONTRACTS DOWN TO 72,183 CONTRACTS. OCTOBER RECEIVED ANOTHER 37 CONTRACTS TO STAND AT 308.  NEXT ACTIVE DELIVERY MONTH IS DECEMBER AND HERE THE OI RISES BY 13,231 CONTRACTS UP TO 126,148.

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 0 notice(s) filed for NIL OZ for the AUGUST, 2019 COMEX contract for silver

 

 

Trading Volumes on the COMEX TODAY: 451,455  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  301,411  contracts

 

 

 

 

 

INITIAL standings for  AUGUST/GOLD

AUGUST 23/2019

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  

96.45 oz

manfra

 

 

3 kilobars

 

No of oz served (contracts) today
63 notice(s)
 6300 OZ
(0.1959 TONNES)
No of oz to be served (notices)
1324 contracts
(132,400 oz)
4.118 TONNES
Total monthly oz gold served (contracts) so far this month
6393 notices
639300 OZ
19.884 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 Manfra:: 96.45  oz

3 kilobars

 

 

 

total gold deposits: 201.07  oz

 

very little gold arrives from outside/ today: a tiny amount  arrived

but 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 63 contract(s) of which 7 notices were stopped (received) by j.P. Morgan dealer and 18 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

To calculate the INITIAL total number of gold ounces standing for the AUGUST /2019. contract month, we take the total number of notices filed so far for the month (6393) x 100 oz , to which we add the difference between the open interest for the front month of  AUGUST. (1387 contract) minus the number of notices served upon today (63 x 100 oz per contract) equals 771,700 OZ OR 24.03 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 (6393 x 100 oz)  + (1387)OI for the front month minus the number of notices served upon today (63 x 100 oz )which equals 771,700 oz standing OR 24.03 TONNES in this  active delivery month of AUGUST.

We GAINED 503  contracts or an additional 50,300 oz will stand as these guys refused to morph into London based forwards as well as negating a fiat bonus. OUR BANKING FRIENDS ARE ATTEMPTING TO FIND SCARCE SUPPLIES OF GOLD METAL ON THIS SIDE OF THE POND AS THEY ARE DESPERATELY TRYING TO PUT OUT MASSIVE FIRES ELSEWHERE

.

SURPRISINGLY LITTLE TO NO  GOLD HAS BEEN ENTERING THE COMEX VAULTS AND WE HAVE WITNESSED THIS FOR THE PAST YEAR!!  WE HAVE ONLY 20.66 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 24.03  TONNES OF GOLD STANDING//

I WOULD ALSO LIKE TO POINT OUT THAT A CONSIDERABLE AMOUNT OF THE COMEX INVENTORY AT THE REGISTERED LEVEL IS OF THE KILOBAR VARIETY WHICH I BELIEVE IS A PHONY.

 

 

total registered or dealer gold:  664,361.813 oz or  20.66 tonnes 
total registered and eligible (customer) gold;   8,039,651.685 oz 250.06 tonnes

 

IN THE LAST 34 MONTHS 109 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 23 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
nil oz

 

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
2,9999.962 oz
Delaware
No of oz served today (contracts)
0
CONTRACT(S)
(NIL OZ)
No of oz to be served (notices)
0 contracts
 NIL oz)
Total monthly oz silver served (contracts)  1996 contracts

9,980,000 oz)

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

**

 

we had 0 inventory movement at the dealer side of things

 

 

total dealer deposits: nil  oz

total dealer withdrawals: nil oz

we had  1 deposits into the customer account

into JPMorgan:  nil  oz

 

ii) Into Delaware: 2,999.962 oz

 

 

 

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

JPMorgan now has 153.760 million oz of  total silver inventory or 49.1% of all official comex silver. (153.4 million/313.1 million

 

 

 

 

total customer deposits today:  2999.962  oz

 

we had 0 withdrawals out of the customer account:

 

 

 

total nil  oz

 

we had 0 adjustment :

 

total dealer silver:  92.892 million

total dealer + customer silver:  313.110 million oz

The total number of notices filed today for the AUGUST 2019. contract month is represented by 0 contract(s) FOR NIL 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 1996 x 5,000 oz = 9,980,000 oz to which we add the difference between the open interest for the front month of AUGUST. (0) and the number of notices served upon today 0 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the AUGUST/2019 contract month: 1996 (notices served so far) x 5000 oz + OI for front month of AUGUST (0)- number of notices served upon today (0)x 5000 oz equals 9,980,000 oz of silver standing for the AUGUST contract month.  

 

WE LOST 1 CONTRACT OR AN ADDITIONAL 5,000 OZ WILL NOT STAND AS THEY MORPHED INTO A LONDON BASED FORWARD AS WELL AS ACCEPTING A FIAT BONUS.

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 0 notice(s) filed for NIL OZ for the AUGUST, 2019 COMEX contract for silver

 

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 0 notice(s) filed for NIL OZ for the AUGUST, 2019 COMEX contract for silver

 

 

 

 

 

 

 

 

 

 

 

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  159,037 CONTRACTS (we had considerable spreading activity..accumulation/zero success on banker short covering)

 

CONFIRMED VOLUME FOR YESTERDAY: 105,312 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 105,312 CONTRACTS EQUATES to 526 million  OZ 75.2% OF ANNUAL GLOBAL PRODUCTION OF SILVER..makes sense!!

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

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

 

end

 

 

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NPV for Sprott 

1. Sprott silver fund (PSLV): NAV FALLS TO -1.43% ((AUGUST 23/2019)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -1.17% to NAV (AUGUST 16/2019 )
Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ -1/43%

(courtesy Sprott/GATA)

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

NAV 1515 TRADING 14.74/DISCOUNT 2.73

 

 

END

And now the Gold inventory at the GLD/

AUGUST 23/WITH GOLD UP $28.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 854.84 TONNES

AUGUST 22.WITH GOLD DOWN $6.80 TODAY: TWO HUGE CHANGES IN GOLD INVENTORY AT THE GLD: I)A PAPER DEPOSIT OF 6.74 TONNES INTO THE GLD (LATE YESTERDAY EVENING) AND 2) A PAPER DEPOSIT OF 2.93 TONNES LATE THIS AFTERNOON./INVENTORY RESTS AT 854.84 TONNES

AUGUST 21/WITH GOLD DOWN $.30 TODAY:A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.76 TONNES INTO THE GLD INVENTORY/GOLD INVENTORY RESTS AT 845.17 TONNES

AUGUST 20//WITH GOLD UP $2.90 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/GOLD INVENTORY RESTS AT 843.41 TONNES

AUGUST 19/WITH GOLD DOWN $11.20//A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF .88 TONNES//INVENTORY RESTS AT 843.41 TONNES

AUGUST 16/WITH GOLD DOWN $7.35: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 844.29 TONNES

AUGUST 15/WITH GOLD UP $3.55 TODAY//WE HAVE A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: WE GOT BACK 7.63 TONNES OUT OF 11.11 TONNES LOST ON WEDNESDAY( A DEPOSIT OF 7.63 TONNES)/INVENTORY RESTS AT 844.29 TONNES

AUGUST 14/WITH GOLD UP $7.60 TODAY (AND DOWN $2.90 YESTERDAY) WE HAD A MONSTROUS WITHDRAWAL OF 11.11 TONNES OF GOLD FROM THE GLD/AND THIS WAS USED IN AN ABORTED RAID YESTERDAY:  INVENTORY RESTS AT 836.66 TONNES

AUGUST 13.2019: WITH GOLD DOWN $2.60 TO DAY: A HUGE 7.92 PAPER GOLD TONNES WERE ADDED TO THE GLD/INVENTORY RESTS AT 747.77 TONNES

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 23/2019/ Inventory rests tonight at 854.84 tonnes

 

 

*IN LAST 650 TRADING DAYS: 80.56 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 550- TRADING DAYS: A NET 86.11 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

 

 

 

 

end

 

Now the SLV Inventory/

AUGUST 23/WITH SILVER UP 37 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 383.850 MILLION OZ//

AUGUST 22/WITH SILVER DOWN 11 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 3.696 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 383.850 MILLION OZ//

AUGUST 21/WITH SILVER UP 1 CENT TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 380.154 MILLION OZ/

AUGUST 20.WITH SILVER UP 20 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 380.154 MILLION OZ//

AUGUST 19/WITH SILVER DOWN 21 CENTS: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 380.154 MILLION OZ/

AUGUST 16/: WITH SILVER DOWN 9 CENTS: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 380.154  MILLION OZ//

AUGUST 15/2019 WITH SILVER DOWN 2 CENTS: ANOTHER BIG CHANGES IN SILVER INVENTORY AT THE SLV: A WHOPPING 3.977 MILLION OZ PAPER DEPOSIT/INVENTORY RESTS AT 380.154 MILLION OZ/

AUGUST 14/2019 WITH SILVER UP 27 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 4.538 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 376.177 MILLION OZ//

AUGUST 13/2019: WITH SILVER DOWN 9 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 6.082 MILLION OZ///INVENTORY NOW RESTS AT 371.637 MILLION OZ

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 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 23/2019:

 

 

Inventory 383.850 MILLION OZ

 

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 1.98/ and libor 6 month duration 2.04

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

G0LD LENDING RATE: + .06

 

XXXXXXXX

12 Month MM GOFO
+ 1.88%

LIBOR FOR 12 MONTH DURATION: 1.97

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.09

end

 

 

end

 

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

Interview with Mark O’Byrne: Gold Down 1% In Week; Up 6% In August and Up 17% YTD; ‘Most Probably Correct’ So Cost Average

Interview with Mark O’Byrne
Gold Up 17% YTD and Best Performing Asset In 2019
Correction Possible In Short Term So Cost Average
Gold in USD – Last 3 Days

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

22-Aug-19 1498.70 1502.05, 1234.63 1225.97 & 1351.98 1354.10
21-Aug-19 1499.65 1503.25, 1235.41 1238.53 & 1351.48 1354.43
20-Aug-19 1502.65 1504.55, 1242.69 1239.60 & 1356.44 1357.86
19-Aug-19 1499.35 1496.60, 1236.66 1235.29 & 1350.76 1348.89
16-Aug-19 1509.05 1515.25, 1242.55 1246.14 & 1361.46 1367.82
15-Aug-19 1517.65 1515.65, 1254.49 1250.26 & 1361.48 1363.78
14-Aug-19 1500.35 1513.25, 1241.69 1253.73 & 1341.61 1356.17
13-Aug-19 1527.20 1498.40, 1265.90 1240.38 & 1363.48 1338.67
12-Aug-19 1501.95 1504.70, 1244.82 1243.63 & 1343.64 1341.74
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

 

Gold in USD – Monthly – 10 Years

 

Listen and Watch Jim Rogers Interview Here

Click here to listen to the latest GoldCore Podcast

Receive our free Daily or Weekly Updates by signing up here and click here to subscribe to GoldCore’s You Tube Channel

Mark O’Byrne
Executive Director

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

ETF holdings expand as investors are hoarding more gold

(Bloomberg/GATA)

Investors hoard most gold in ETFs in six years

 Section: 

… And its custodian, HSBC, will be glad to short, swap, and rehypothecate it to prevent them from profiting from it.

* * *

By Ranjeetha Pakiam
Bloomberg News
Thursday, August 22, 2019

Gold is faring extremely well as a haven asset, with inflows into exchange-traded funds hitting 1,000 tons since holdings bottomed in early 2016 after a prolonged unwind in the wake of the global financial crisis.

Total known ETF holdings expanded to 2,424.9 tons on Wednesday, the highest since 2013, following inflows over the past three years and a continued build-up in 2019, according to data compiled by Bloomberg. Current assets are about 1,000 tons higher than the post financial crisis nadir of 1,425.1 tons. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-08-22/gold-inflows-hit-1-00…

END

Indian farmers, short of cash for seeds are using gold as collateral

(Reuters/GATA)

Indian farmers reminded that gold is always as good as money

 Section: 

Indians Pawning the Family Gold Amid Credit Crunch

By Rajendra Jadhav and Nupur Anand
Reuters
Thursday, August 22, 2019

Refused a loan by a state-run lender and desperate for funds to buy cotton seeds before the summer sowing season window closed, Indian farmer Babasaheb Mandlik ran out of choices — he pawned his wife’s gold jewelry.

Mandlik, who owns an 8-acre cotton farm in western India, pledged 70 grams of gold, almost all his wife’s precious trinkets, in June in return for 150,000 rupees ($2,105).

… 

“Pawning the jewelry was a difficult decision as my wife likes to wear it at festivals and weddings,” 50-year-old Mandlik told Reuters. “I convinced her that we didn’t have any other option.”

Mandlik is not alone. While pawning gold has long been an option for quick funds in a country that is the world’s second-biggest consumer of the yellow metal, several lenders told Reuters of unprecedented demand as people struggle to secure loans from banks grappling with bad debt and a shadow lending industry stung by a liquidity crunch.

The trend, which has prompted some lenders to impose restrictions as risks and borrowing costs rise, has been accelerated by record gold prices. …

… For the remainder of the report:

https://www.reuters.com/article/us-india-gold-loans/indians-pawning-the-…

END

Seems that investors are taking the threats seriously:  the stubbornly strong dollar  is prompting talk of the USA’s attack on the Chinese yuan

(London’s Financial Times/GATA)

Stubbornly strong dollar prompts talk of U.S. attack on China’s currency

 Section: 

By Eva Szalay
Financial Times, London
Thursday, August 22, 2019

Top Chinese bankers in London are warning of the drama that would follow any U.S. attempt to weaken the dollar by intervening in renminbi markets — a move that would be seen by Beijing as a “political act.”

The risks of such action have heightened since June, said analysts, after U.S. President Donald Trump repeatedly took aim at China and Europe for “playing currency games” as trade wars threatened to spill over into foreign exchange markets.

… 

The U.S. Treasury officially branded China a currency manipulator this month after the Chinese central bank allowed the renminbi to fall below 7 to the dollar, a key threshold last breached in 2008, leading to escalation in trade tensions. Today the renminbi was trading at a fresh low of 7.0749.

But despite a lull in tit-for-tat tariffs and a delay to some additional levies on Chinese imports to the U.S., the warnings are the latest signal that markets are taking the currency threat seriously. One senior staffer at a London-based Chinese bank said the U.S. could conceivably intervene in the offshore renminbi market, where the currency is traded more freely than on the mainland. But the consequences could be serious. …

… For the remainder of the report:

https://www.ft.com/content/188047f4-c2a0-11e9-a8e9-296ca66511c9

 


* * *

Join GATA here:

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

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

END

We brought this important story to you yesterday but it is worth repeating:  China has relaxed its gold importing restrictions on its citizens.

(Reuters/GATA)

China eases restrictions on gold imports, sources tell Reuters

 Section: 

By Peter Hobson and Yawen Chen
Reuters
Thursday, August 22, 2019

China has partially lifted restrictions on imports of gold, bullion industry sources said, loosening curbs that had stopped an estimated 300-500 tonnes of the metal worth $15-25 billion at current prices from entering the country since May.

China’s central bank had for several months curtailed or not granted import quotas to commercial banks responsible for most of the gold that enters the country, Reuters reported last week.

… 

Sources said those measures had possibly been designed to reduce capital outflows and bolster the yuan, which has slumped to 11-year lows against the dollar as a trade dispute with the United States batters China’s economy. CNY=CFXS

The central bank began to issue quotas again last week, but for lower amounts of gold than considered normal, three people with direct knowledge of the matter in London and Asia said – without specifying exact amounts. …

… For the remainder of the report:

https://www.reuters.com/article/us-china-gold/china-eases-restrictions-o…

END

iii) Other physical stories:

Ted Butler on the two JPMorgan traders criminal conviction

pay close attention…

On The Job Training

Theodore Butler | August 23, 2019 – 2:15am

Tuesday’s announcement by the Justice Department of a guilty plea by a long term former trader from JPMorgan for spoofing COMEX precious metal futures was the second such guilty plea since October. Both traders are cooperating in the DOJ’s ongoing investigation.

https://www.justice.gov/opa/pr/precious- metals-trader-pleads-guilty-conspiracy-and-spoofing- charges

While it took way too long for the Justice Department and the CFTC to finally crack down on spoofing, I suppose it’s a case of better late than never. And there can be little doubt that the regulators have cracked down on the illegal practice, which involves the entry and immediate cancellation of large orders solely designed to manipulate prices in the short term.

But there is another aspect of Tuesday’s announcement that pertains strictly to JPMorgan of all the firms where spoofing has occurred. Only at JPMorgan has the Justice Department alleged that the two traders pleading guilty had learned the practice from more senior traders at the bank and spoofed with the full knowledge and consent of their immediate supervisors. Those are the Justice Department’s words, not mine. This brings new meaning to the term – on the job training.

The two traders pleading guilty had worked at JPMorgan for more than a decade, making them each around 23 years old when they began their careers at JPMorgan. I remember what it was like getting a job at a prestigious financial firm at such a young age when I began working at Merrill Lynch nearly 50 years ago. Like the two former JPM traders, I felt lucky to have been given the opportunity to work in such a profession and would do anything I could to succeed at it. If someone told me to jump – I would have asked, how high? I wouldn’t have done anything illegal, but at twenty-something years of age, I’m not sure I would even know for sure what was illegal. How much do we really know at 23 years of age?

I think the same of the two young former JPMorgan traders who have pled guilty. It’s not like anyone teaches spoofing in college; this is a practice learned on the job. In this case, young and inexperienced traders, eager to please and succeed, were sure to do whatever they were instructed and taught by more experienced traders and supervisors. Both did so and rose through the trading ranks, reaching the position of vice president and executive director.

Not for a minute am I completely excusing the illegal behavior of the two traders pleading guilty, but would they have embarked on a journey that ended in criminal guilty pleas were it not for their training and molding by their employer? As such, the guilty pleas need to be put into proper perspective. The Justice Department can continue to extract guilty pleas from individual traders from JPMorgan or it can go to the root cause of the criminal activity and put pressure on the bank to end its manipulative ways.

Ted Butler
https://www.butlerresearch.com/

-END-

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0830/ PAST 7:1

//OFFSHORE YUAN:  7.0931   /shanghai bourse CLOSED UP 13.99 POINTS OR 0.49%

HANG SANG CLOSED UP 130.61 POINTS OR 0.50%

 

2. Nikkei closed UP 82.90 POINTS OR 0.40%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index UP TO 98.42/Euro FALLS TO 1.1059

3b Japan 10 year bond yield: RISES TO. –.23/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.85/ 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:: 55.37 and Brent: 59.77

3f Gold DOWN/JAPANESE Yen DOWN 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 RISES TO -.64%/Italian 10 yr bond yield DOWN to 1.32% /SPAIN 10 YR BOND YIELD DOWN TO 0.15%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.96: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.96

3k Gold at $1499.40 silver at: 17.07   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 5/100 in roubles/dollar) 65.68

3m oil into the 55 dollar handle for WTI and 59 handle for Brent/

3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation. This can spell financial disaster for the rest of the world/

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 106.65 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 .9870 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0915 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.64%

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 1.64% early this morning. Thirty year rate at 2.13%

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

6.  TURKISH LIRA:  UP  TO 5.7634..

Global Markets On Edge Ahead Of Powell Speech, 2s10s Dips In And Out Of Inversion

Global stocks, US equity futures, and the dollar rose on Friday ahead of a much anticipated speech by Jerome Powell which the market hopes will provide clarity on whether the Fed will deliver another interest rate cut in three weeks, and whether it will be 25 or 50bps.

 

The levitation was hit, however, just after 630am when Global Times EIC tweeted that a Chinese retaliation to the latest round of US tariffs is coming.

Twitter trolling notwithstanding, the MSCI All Country World Index was up 0.1% and set to break a three-week losing streak.

European stocks rebounded from the previous day’s falls, with the European Stoxx 600 index gaining as much as half a percent in early deals, and were set for the best weekly gain since June, clearly indicating confidence that Powell would not reveal any hawkish surprise. Britain’s FTSE 100 index was up 0.64%.

Earlier in the session, the MSCI Asia index ex Japan rose 0.3% and was up 1.0% for the week, on track to break a four-week losing streak. Japan’s benchmark Nikkei advanced 0.4% and Australian stocks added 0.3%. Energy producers and utility companies led gains. Most markets in the region were up, with India and Thailand among the top performers. The Topix added 0.3%, supported by electronic firms and retailers. Japan’s highly manipulated and goalseeked CPI stayed unchanged in July amid speculation that the central bank will boost stimulus. The Shanghai Composite Index rose 0.5% for its best week since June, with Kweichow Moutai Co. and Jiangsu Hengrui Medicine Co. among the biggest boosts. China and U.S. deputies had a “productive call” on trade negotiations Wednesday, Larry Kudlow told Fox Business although that was rejected hours later when the Global Times said China is preparing for retaliation and the US “will feel the pain.” India’s Sensex advanced 0.7%, driven by Reliance Industries Ltd. and Tata Consultancy Services Ltd., after an official said the government may soon reverse a planned tax on foreign investors

Volumes, as has been the case, were lethargic with traders unwilling to commit capital ahead of today’s main event, when Powell is due to speak at 10am at Jackson Hole, Wyoming. While markets overwhelmingly expect the Fed to follow up its first rate cut in a decade with more stimulus at its meeting next month, a trio of policymakers sounded less than keen. On Thursday, Kansas City Fed President Esther George, who dissented against the decision to ease in July, Philadelphia Fed President Patrick Harker, who said he “reluctantly” supported the cut, and Boston Fed’s Rosengren all said the U.S. economy did not need more stimulus at this point.

This hawkishness was somewhat offset by Dallas Fed President Robert Kaplan who said businesses had become much more cautious due to surprises on trade policy and he was “going to at least be open-minded about making some adjustment” if he saw continued weakness. That has made Powell’s speech pivotal for markets as they look for any clues on future policy direction, according to Reuters.

“Judging by the minutes from the July meeting the central bank seems content to sit on their hands, but it is worth remembering the U.S.-China trade situation has intensified, and so has the unrest in Hong Kong, and that might prompt Mr. Powell to be a touch more dovish than he was in late July,” said David Madden, markets analyst at CMC Markets in London.

In the U.S. bond market, the 2-10 year yield curve briefly moved back into inversion territory overnight, a shift that also occurred yesterday and for the first time since the crisis, last week, and hit financial markets amid worries that it presaged a sharp global downturn.

“There’s been no jaw-dropping news this week but we have had incrementally less bond-friendly news – the FOMC minutes, the euro area PMIs, and Fed speakers in recent days that give the impression that July was an insurance rate cut,” said Standard Chartered FX strategist John Davies. “This has dragged the market away from speculating about 25-50 basis points rate cut in September to a discussion on a 25 bps cut to will they cut rates, so a bit more uncertainty has been injected into markets.”

European bonds were rangebound, while Italian bonds fell after President Sergio Mattarella gives rival parties more time to put together a new parliamentary majority.

In FX, the euro eased marginally to $1.1073, while the pound fell half a percent to $1.2195, reversing most of the gains made on Thursday after traders interpreted encouraging comments on Brexit from German Chancellor Angela Merkel to mean a solution to the Irish border problem could be found before Britain leaves the EU on Oct. 31.

The closely watched Chinese yuan recovered some ground after hitting an 11-1/2 year low. Spot yuan slid to as low as 7.0992 per dollar, its weakest since March 2008. China’s central bank set the midpoint rate at 7.0572, its weakest level in 11-1/2 years but much stronger than traders had expected.

The kiwi led G10 currency gains after Governor Adrian Orr said New Zealand’s central bank can afford to wait and see before deciding on further steps to support economy.

Finally, the Bloomberg Dollar Spot Index held near year-to-date highs ahead of Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole. Perhaps more notable is that the broadly trade weighted dollar just hit an all time high, making the probability of a direct US intervention in the currency especially high.

In commodities, oil prices weakened, with both Brent crude and U.S. West Texas Intermediate down 0.1%. Brent crude traded at $59.89 per barrel and WTI crude at $55.31. Gold eased and was set for its worst week in nearly five months. Spot gold was down 0.2% at $1,495.60 an ounce.

Besides the Jackson Hole speeches (full schedule here)  expected data include new home sales. Foot Locker reported poor earnings, and dismal same store sales, sending its stock plunging.

Market Snapshot

  • S&P 500 futures up 0.4% to 2,933.50
  • STOXX Europe 600 up 0.5% to 376.29
  • MXAP up 0.3% to 152.25
  • MXAPJ up 0.4% to 493.20
  • Nikkei up 0.4% to 20,710.91
  • Topix up 0.3% to 1,502.25
  • Hang Seng Index up 0.5% to 26,179.33
  • Shanghai Composite up 0.5% to 2,897.43
  • Sensex up 0.8% to 36,760.48
  • Australia S&P/ASX 200 up 0.3% to 6,523.13
  • Kospi down 0.1% to 1,948.30
  • German 10Y yield rose 1.8 bps to -0.626%
  • Euro down 0.09% to $1.1070
  • Italian 10Y yield fell 2.5 bps to 0.96%
  • Spanish 10Y yield rose 3.4 bps to 0.175%
  • Brent futures down 0.2% to $59.81/bbl
  • Gold spot down 0.1% to $1,495.91
  • U.S. Dollar Index up 0.2% to 98.35

Top Overnight News from Bloomberg

  • Italy’s center-left Democrats have until Tuesday to form a coalition with their long-time rivals, the anti-establishment Five Star Movement, after President Sergio Mattarella gave them more time to put together a new parliamentary majority.
  • Emmanuel Macron said Group of Seven leaders gathering in Biarritz, France, Saturday must tackle head on the fires in the Amazon jungle, establishing the summit’s first flash point. “Our house is burning. Literally,” the French president wrote in a tweet late Thursday. “It is an international crisis.”
  • Three Federal Reserve policy makers voiced their resistance to the notion that the U.S. economy needs lower interest rates
  • Dallas Fed President Robert Kaplan said he supported the central bank’s move to cut its benchmark interest rate by a quarter point last month — and is open to another reduction in the months ahead, according to WSJ.
  • New Zealand’s central bank will do “whatever it takes” to support the economy and will monitor the inflationary impact of this month’s unexpectedly large interest rate cut before considering further easing, Orr said
  • Italy’s center-left Democrats have until Tuesday to form a coalition with the anti-establishment Five Star Movement, after President Sergio Mattarella said he was giving parties more time to try and put together a new parliamentary majority
  • Japan’s key inflation gauge remained unchanged in July amid increasing speculation that the Bank of Japan may ramp up its stimulus as early as next month
  • Germany’s central bank doesn’t see a need for fiscal stimulus at this time, even though it expects the economy to shrink again this quarter, according to two people familiar with the Bundesbank’s stance
  • Japan’s sovereign debt market is in danger of joining Germany with negative bond yields across all maturities
  • Investors are starting to question the epic bond rally that’s driven global yields to new lows and fueled the U.S. Treasury market’s best performance since the era of quantitative easing.
  • Volkswagen AG is exploring potential investments in Chinese automotive suppliers as it seeks to secure access to key technology in the world’s largest car market, people familiar with the matter said
  • Donald Trump’s lawyers will be in a New York courtroom Friday trying to block Democrats’ access to financial records from Deutsche Bank AG and Capital One Financial Corp. — and House Speaker Nancy Pelosi has much at stake over the outcome

Asian equity markets traded with cautious gains as participants await Fed Chair Powell’s looming speech at the Jackson Hole Symposium and after the lack of conviction on Wall St. where risk appetite was dampened by hawkish Fed rhetoric, as well as decade-low US Manufacturing PMI data. ASX 200 (+0.3%) was positive with stock news in Australia dominated by earnings including Goodman Group and Sims Metals which have surged due to profit growth, although upside in the index was limited by weakness in the commodity sectors especially gold miners after the precious metal slipped below USD 1500/oz level. Elsewhere, Nikkei 225 (+0.4%) was supported by favourable currency moves, while Hang Seng (+0.5%) and Shanghai Comp. (+0.5%) were higher despite early indecisiveness after China’s MOFCOM reiterated its threat to retaliate against the US in the trade dispute and amid mixed signals from the PBoC in which they conducted reverse repos but resulted to a net liquidity drain for the week and softened its reference rate, although not as weak as anticipated. Finally, 10yr JGBs were subdued amid similar weakness in T-notes and as stocks in the region eked mild gains, although downside was stemmed amid the BoJ’s presence in the market for over JPY 1.2tln of JGBs in 1yr-10yr maturities.

Top Asian News

  • India May Roll Back Tax on Foreign Investors, Official Says
  • Delinquencies Jump After Bangladesh Central-Bank Move Backfires
  • A 203-Year-Old Trading Empire Faces China’s Wrath Over Hong Kong

European equities opened and remained on a somewhat firmer footing (thus far) [Eurostoxx 50 +0.3%] on the last trading day of the week which follows on from an initially cautious Asia-Pac session before sentiment turned for the better ahead of Fed Chair Powell’s opening remarks at the Jackson Hole Symposium at 1500BST/1000EDT. Sectors are mostly in the green with the exception of the energy sector which coincides with recent losses in the oil complex. Meanwhile, the IT sector outperforms as stellar earnings from US-listed Salesforce.com (+6.8% pre-market) provided tailwinds to DAX heavyweight SAP (+0.6%), which accounts for around 1.5% of the Stoxx 600 index. In terms of individual movers, Thyssenkrupp (+0.7%) opened higher amid source reports that it is planning to merge its steel unit with Klöckner (+8.3%). Also, it’s worth keeping in mind a report by Politico which stated that EU Officials are seeking to create a EUR 100bln wealth fund in order to bolster ‘European Champions’ against American and Chinese business rivals such as Apple (+0.6% pre-market), Google (+0.9% pre-market) and Alibaba (+0.9% premarket).

Top European News

  • Hasbro Agrees to Buy Producer of Peppa Pig Show for $4 Billion
  • Woodford Raises About $800 Million Since Freezing Flagship
  • Commerzbank Considers Cutting Up to 2,000 Additional Jobs
  • Italian Bonds Fall as Positions Pared Ahead of Powell, G7 Meet

In FX, the Greenback has nudged up a bit further from post-US manufacturing PMI lows that saw the DXY skirt 98.000, and the index is now edging back up towards wtd peaks just shy of 98.500 posted on Tuesday within a 98.185-436 range. Relatively hawkish rhetoric from Fed’s George and Harker have underpinned the Buck ahead of Chair Powell’s keynote speech that is being eyed for clearer policy guidance given this week’s FOMC minutes highlighting divisions between voters beyond the 2 dissenters against July’s 25 bp insurance/mid-cycle rate cut.

  • NZD/GBP – Not quite all change, but positions and roles have partially reversed for the Kiwi and Pound following supportive comments from RBNZ Governor Orr and less euphoria/hype about the prospect of formulating a plan for the Irish backstop that is mutually acceptable for the UK and EU. To recap, NZ’s Central Bank head indicated that the recent larger than expected OCR ease (1/2 point) affords some time for assessment before deciding whether more stimulus is needed in November and effectively signally a pause next month, while French President Macron and German Chancellor Merkel have both been receptive to PM Johnson and the notion that a resolution to the Irish backstop impasse can be reached before it’s too late, but the ball and onus to come up with something different is back in UK hands. In response, Nzd/Usd has rebounded towards 0.6400, with AUD/Nzd back under 1.0600 as Aud/Usd pivots 0.6750 amidst the ongoing, incremental rise Usd/Cny mid-point rates, while Cable has retraced more of its gains through 1.2200 at one stage.
  • CHF/JPY – The Franc and Yen are both weaker vs the Dollar as US Treasury yields rise and the curve steepens, while safe-haven demand is also waning with global trade and geopolitical tensions still prevalent, but not escalating (at present). As such, Usd/Chf and Usd/Jpy are firmer around 0.9850 and 106.50 handles respectively.
  • CAD/EUR – The Loonie and Euro remain relatively rangebound vs the Greenback circa 1.3315 and 1.1065, with the former looking for more independent inspiration from Canadian retail sales data after failing to glean any real or lasting impetus via firm CPI and other minor macro inputs this week (wholesale trade and manufacturing sales). Meanwhile, the single currency is hanging on above 1.1050 and the 2019 base (1.1029) awaiting insight from Fed’s Powell, September’s ECB policy meeting to see how much stimulus is delivered after minutes underlining heightened economic concerns and what happens next in Italy on the political front.
  • EM – The Rand is outperforming and clawing back recent losses vs the Buck with a less downbeat/negative take from Moody’s on the SA fiscal outlook following extra financial assistance for Eskom helping alongside a less bearish technical backdrop as Usd/Zar reverses through 15.2500 and 15.1500 before basing around 15.1300.
  • RBNZ Governor Orr reiterated a rate cut earlier reduces likelihood of having to do more later and stated they will do whatever it takes to support New Zealand economy but can afford to wait and observe what is happening, while he added that they will see what the situation is like in November and will cut if necessary. (Newswires)

In commodities, WTI and Brent futures are choppy in a relatively tight parameter as all eyes turn to Fed Chair Powell for any hint on the magnitude of the widely anticipated Fed rate cut in September against the backdrop of some recent hawkish Fed rhetoric. WTI futures remain contained in a 55.20-60/bbl range whilst its Brent counterpart straddles on either side of 60/bbl. Elsewhere, gold is marginally softer intraday and remains below the 1500/oz mark, largely weighed on by a firmer Greenback, in anticipation for the Fed Chair’s speech. Copper on the other hand is rebounding off recent lows, albeit prices remain below 2.6/lb with desks citing US-China optimism as a driver, although a retracement of recent losses/some profit taking may also be factors. Meanwhile, Dalian iron ore surged over 3% overnight following the ruthless sell-off in recent days, also potentially due to profit-taking heading into a risk-packed weekend. Finally, ING notes that the recent surge in Nickel prices seem to be running out of steam after prices declined around 4% this week. “The speculated supply disruptions from Indonesia have not materialised yet, whilst the demand-side continues to face pressure as margins for stainless steel producers take a hit” the analysts state.

US Event Calendar

  • 10am: New Home Sales, est. 647,000, prior 646,000
  • 10am: New Home Sales MoM, est. 0.16%, prior 7.0%
  • 10am: Annual Federal Reserve Policy Symposium in Jackson Hole

DB’s Craig Nicol concludes the overnight wrap

The annual spotlight on the tiny Wyoming resort of Jackson Hole is once again upon us today with the big event being Fed Chair Powell’s speech at 10am EST/3pm GMT. Given that we haven’t heard much out of the Fed in recent weeks and that since the last FOMC meeting we’ve had another round of trade war tensions, global growth slowdown fears and further steep drops in bond yields, the event couldn’t come soon enough. All those concerns are crystalizing today, after the 2y10y curve closed in negative territory last night for the first time since 2007. As we know, the symposium has had its fair share of moments, most notably in 2014 when Draghi laid the groundwork for QE and in 2012 when Bernanke hinted at QE3. However, with the market pricing in 57ps of cuts this year and a further 47bps in 2020, the dovish bar is already set fairly high for Powell.

As a reminder the topic of this year’s event is the sufficiently vague “Challenges for Monetary Policy”. The immediate focus of Powell’s speech will likely be whether he affirms that the current easing is a ‘mid-cycle adjustment’ as per the FOMC minutes or align more closely to market pricing. In his note from two days ago (see here ), DB’s Alan Ruskin believes that if Powell sticks to the old language as is most likely, it would affirm that he is still confident that the strength of consumption, in combination with modest Fed easing, will be sufficient to keep the recovery broadly on track. Alan believes that while this is implicitly slightly more hawkish than the market, pricing will not shift dramatically given it has already moved in that direction after the FOMC minutes on Wednesday.

The agenda for the event was released last night and other potentially interesting agenda items to keep watch for apart from Chair Powell’s speech include a panel on “monetary policy divergence” and one on “monetary policy spillovers.” So today’s sessions will focus on the international angle to central bank policy, followed by another panel on “what does it mean to be a data-dependent central banker?” The panels on Saturday look a bit less impactful, with sessions on “commodity price shocks,” “financial markets,” and an economic overview from IMF chief economist Gita Gopinath.

Fed officials already descended on Jackson Hole yesterday, and we got an interesting trickle of comments from some regional presidents. Overall, the tone was on the hawkish side of expectations. Kansas City’s George said that she is not ready to provide more policy accommodation, Dallas’s Kaplan said “I’d like to avoid having to take further action,” and Philadelphia’s Harker said “I think we should stay here for a while and see how things play out.” And yes, he was talking about interest rates, not the beautiful resort in Wyoming.

Markets were in something of a holding pattern yesterday going into Powell’s speech with the main talking point being the PMI releases in Europe and the US. We’ll come to those shortly however in terms of markets, the S&P 500 finished -0.05% last night, with the NASDAQ lagging -0.36% and the DOW outperforming +0.19%. Markets in Europe ebbed and flowed before the STOXX 600 ended -0.40%. Meanwhile, in rates Treasuries continued to weaken slightly, with 10y yields up +2.2bps while the 2s10s curve finished below zero at -0.1bps. That marks the first close below zero and in inversion territory of this cycle. European bond yields were higher, mostly as a result of the ECB minutes from the meeting last month which at the margin were slightly hawkish. There appeared to be broad agreement to reintroduce the rates easing bias however “nuances were expressed” with regards to how the design and individual elements of a possible policy package could look. There was also a reference to how the risk of an unwarranted tightening of financial conditions was higher at the short end than the long end of the yield curve while there was also talk of concerns about possible “unintended consequences” with regards to tiering. European banks did however benefit from the move higher in yields, rallying +1.32%.

Overnight, markets in Asia have nudged higher with the Nikkei (+0.26%), Hang Seng (+0.48%), Shanghai Comp (+0.48%) and Kospi (+0.05%) all making advances. In FX, the New Zealand dollar is up +0.39% this morning after the country’s central bank governor said he could afford to wait before deciding whether to add more support for the economy. All other G-10 currencies are trading a bit weaker. Elsewhere, futures on the S&P 500 are up +0.33%. In terms of overnight data releases, Japan’s July CPI came in one tenth lower than expected at +0.5% yoy while core CPI came in line with expectations at +0.6% yoy and core-core CPI came in one-tenth above expectations at +0.6% yoy.

Back to those PMIs yesterday, where although much was made of the beat at the headline level in Europe, the underlying details particularly in Germany were less than encouraging. Indeed composite readings in France (52.7 vs. 51.8 expected; 51.9 previously), Germany (51.4 vs. 50.6 expected; 50.9 previously) and the Euro Area (51.8 vs. 51.2 expected; 51.5 previously) all bettered expectations and rose from the month prior. It was a similar story for the services and manufacturing components with Germany’s manufacturing print coming in 0.4pts higher at 43.6 (vs. 43.0 expected) and the services reading at 54.4 (vs. 54.0 expected). That being said, it’s hard to ignore the fact that this is still the eighth contractionary manufacturing print for Germany in succession, while the details of Germany’s PMIs also revealed deterioration in total inflow of new business (for the third month in a row), new orders from abroad dropping across all sectors and for the first time in five years, a majority of firms expecting output to fall over the next twelve months. In addition, the decline in the order backlog accelerated some more and while the gap between manufacturing and services narrowed slightly, the dichotomy still very much remains.

All-in-all the data implies around +0.2% qoq GDP growth for the Euro Area in Q3, low +0.3% qoq in France and barely positive growth for Germany which fits with our economists view of a potential contraction in Q3 and therefore a technical recession. Staying with Europe it’s worth noting that the data was also less than encouraging in Sweden yesterday where the unemployment rate ticked up notably in July to 7.1% on a seasonally adjusted basis – and the highest since August 2016 – from 6.7% in June. That was after expectations were for a drop to 6.5%.

In the US the PMIs were also disappointing. That was especially the case for the manufacturing print which fell into contractionary territory at 49.9 (vs. 50.5 expected) for the first time since 2009. The services reading also fell, to 50.9 (vs. 52.8 expected) from 53.0 last month which put the composite at 50.9 and matching the lows from May this year. As for what that means for growth, that corresponds to near 1.5% GDP growth in Q3 and Q4. Prior to that, the latest jobless claims data showed no signs of softness following a lower than expected 209k reading – which was the lowest in four weeks. Meanwhile the July leading index printed at 0.5%, up 0.6pp for the biggest increase since 2017, and the August Kansas Fed manufacturing survey fell to -6 from -1.

Meanwhile, Brexit headlines continued to flow, with the pound rallying +1.02% versus the dollar. Apparently headlines from Chancellor Merkel saying there is still time to find a solution to the backstop to avoid a no-deal Brexit sparked optimism. We remain skeptical that her comments signaled any change in position, and indeed President Macron said later that “we are not going to find a new withdrawal agreement that is far from the original.” Nevertheless, the pound did hold its gains.

Looking at the day ahead, the obvious focus will be on Fed Chair Powell’s speech at Jackson Hole this afternoon, with the only data due being July new home sales numbers in the US.

 

3A/ASIAN AFFAIRS

I)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED UP 13.99 POINTS OR 0.49%  //Hang Sang CLOSED UP 130.61 POINTS OR 0.50%   /The Nikkei closed UP 82.90 POINTS OR 0.40%//Australia’s all ordinaires CLOSED UP .32%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0830 /Oil UP TO 55.37 dollars per barrel for WTI and 59.77 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0830 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0931 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

NORTH Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

As described above China is now on the warpath. They have now threatened the USA if they lowered their value of the uSA dollar vs CNY or CNH they will take punitive action

(zerohedge)

China Threatens US Currency Intervention Would Lead To “Market Turmoil” And “Unprecedented Political Fallout”

When, for the first time in 11 years, Jerome Powell cut the Fed Funds rate by 25bps on July 31, something unexpected happened: the dollar spiked (in fact, the trade weighted dollar soared to a record high). And not only did the dollar spike as a result of a market that screamed to Powell “long overdue policy error”, coupled with a growing dollar liquidity shortage which according to BofA and JPM will force the Fed to launch QE before long, but it was hit by a double whammy when it fell even further against the yuan just a few days later after Trump launched trade war. In fact, the yuan is now the lowest it has been against the dollar in 11 years. Worse, while the yuan dropped against its basket of reference currencies, the decline was far steeper against the greenback, suggesting that this was a premeditated, political move. That rapid devaluation prompted many banks (such as Bank of AmericaStandard Chartered and others) to speculate that it is only a matter of time before the US directly intervenes in the market to devalue the dollar against specific pairs (selling dollars, buying the reference currency), and especially against the Yuan.

That threat has not been lost on Beijing, and as the FT reports today, top Chinese bankers in London have warned of the “drama” that would follow any US attempt to weaken the dollar by intervening in renminbi markets — a move that would be seen by Beijing as a “political act.” A hostile “political act.”

Yet such an act looks increasingly likely after Trump has repeatedly taken aim at China (and Europe) both on Twitter and elsewhere for “playing currency games” as the trade war has morphed into a currency war, if not a full-blown one yet.

The first shot in that particular currency war took place earlier this month when the US Treasury officially branded China a currency manipulator after the Chinese central bank allowed the renminbi to fall below Rmb7 to the dollar, a key threshold last breached in 2008, leading to further escalation in trade tensions. On Thursday the renminbi was trading at a fresh low of 7.09, with the both the offshore and onshore versions having once again converged.

 

And so, with the yuan drifting lower day after day, one senior staffer at a London-based Chinese bank told the FT that the US could intervene in the offshore renminbi market, where the currency is traded more freely than on the mainland. But, he warned, “the consequences could be serious.”

If you take on China on the currency . . . it would be interpreted as a political act and it would throw markets into turmoil,” said the senior staffer, speaking on condition of anonymity. The political fallout would be “unprecedented”, he added.

The US, predictably, has far less qualms about intervening: “We are getting closer to terms where intervention is possible,” said Eaton Vanceco-director of global income and portfolio manager, Eric Stein. The only thing missing is a trigger, which likely will come in the form of a tweet from the president.

But what will the US target? the list of possible targets for US intervention is broad, said Bank of America Merrill Lynch strategist Ben Randol, and includes the euro, Japan’s yen, the Mexican peso and, most likely, the Chinese yuan.

“If an intervention does go ahead, I think the US would probably target specific currencies such as the renminbi, rather than attempt to achieve broad-based dollar weakness,” said Stephen Oh, global head of credit and fixed income at PineBridge Capital, which manages $97bn of assets.

The next question is how big would the US salvo be? Well, as we explained recently, the US could deploy up to $146 billion if intervention was launched, the combination of the Treasury’s Exchange Stabilization Fund and the central bank’s firepower.

“The Fed could just buy up all the offshore renminbi. It’s so illiquid that [they] could drive prices [higher] easily,” said Jon Vollemaere, chief executive of R5FX, a trading platform focused on emerging markets. Such a move could have an immediate impact on prices; it would also ensure a violent response from Beijing.

To be sure, the political fallout would be unprecedented. A unilateral move by the US – highlighted in the middle column in the Morgan Stanley table below – would inflame not just policymakers in Beijing but in Europe too, as Washington could be deemed to be in breach of the commitment among G20 nations to avoid competitive devaluations.

And speaking of Morgan Stanley, the bank’s analysts said in a report this week that the market may be “underestimating the ease with which the US can intervene unilaterally, and we estimate the administration has US$67.8 billion at its disposal to do so. Resources beyond that would require the Fed, Congress or foreign partners to participate.”

The final question is what would China do in response? While the PBOC would likely move swiftly to counter any US-led buying of the renminbi, implementing restrictions on the offshore currency would be very costly for Beijing, which unlike the US, can not simply print dollars and would have to raid its currency reserves to offset any direct US currency intervention “It would be a massive . . . loss of face for China if they were forced to impose capital controls,” Vollemaere said.

So how likely is that the US and China would launch all out currency war at each other in the FX market?

Last month US Treasury secretary Steven Mnuchin said there was no change “as of now” to America’s currency policy but added that a different stance could be considered in the future. To be sure, investors are growing more cautious and are increasingly unwilling to short the yuan over fears of a surprise intervention by the US. One head of a currency trading platform that serves US hedge funds told the FT that his clients have begun to stay away. “They don’t want to be on the wrong side of the Fed.” Something tells us that neither does China.

end
Mainland China/Hong Kong
China furious at the chaotic scenes from the Hong Kong Metro station and they warn how in earth the authorities let criminals go
(zerohedge)

“They Let The Criminals Go”: China Furious At Chaotic Scenes From HK Metro Station Unrest

Another Hong Kong protest ‘sit-in’ turned into a violent scrap with police as on Wednesday night thousands of black-clad youth and others set up barriers and occupied the Yuen Long station of the city’s MTR metro.

The protest was to mark the one-month anniversary of what anti-Beijing demonstrators are calling the the ‘Yuen Long attack, which involved a gang of white-shirted, baton wielding men charging the busy station and brutally beat random HK demonstrators and passers-by who were on their way back from a mass rally against the extradition bill.

 

Wednesday’s protest marked a July 21st incident at the same location involving white-shirted thugs attacking anti-Beijing protesters with batons. Image source: Reuters

That prior July 21 incident had left at least 45 injured and ratcheted up anger and tensions between HK police and protesters, given the police were accused of standing by while the unknown thugs attacked the station,and the lack of charges or a transparent investigation into the mass attack (merely two have been charged thus far). It was widely interpreted as a sanctioned violent counter-attack against the anti-Beijing demonstrators designed to send a message.

 

Wednesday night’s commemoration protest turned into hours of chaos after the demonstrators barricaded themselves in the metro station, with police concentrated outside the station, reluctant to charge in.

SCMP News

@SCMPNews

Demonstrators faced off with officers at station after a sit-in to mark one month since a mob attacked protesters and passengers. Police arrested 28 people, but have not charged anyone in the assaults. http://sc.mp/atwo

Embedded video

Trash cans and metal benches were piled together into barricades to block police from entering, as security forces fired tear gas into the station. Liquid was also sprayed on the floor and many demonstrators were armed with fire extinguishers.

Bloomberg TicToc

@tictoc

Hong Kong protesters on Wednesday used fire extinguishers, water and soap to stop riot police from charging inside Yuen Long station

Embedded video

Below: Footage from the violent July 21st incident at Yuen Long station, when a group of men believed in cahoots with police charged the station as HK protesters were returning from a rally, resulting in at least 45 injured amid blood-spotted floors:

 

On July 21st the MTR station came under attack by a gang targeting participants in an extradition bill march, via SCMP.

Crucially, with the exterior of the station completely blocked off by police, Hong Kong’s MTR Corp. actually appeared to facilitate the safe exit of protesters at the Yuen Long station. Instead of leaving through the barricades and thus face arrest, the anti-Beijing protesters were simply able to board a waiting train and exit the largely destroyed premises.

This was enough for state-run China Central Television (CCTV) to level charges of “indulging violence” and “challenging rule of law”. Images and video of HK protesters taking over the station and fighting off police but getting off unscathed went viral, angering mainland commentators.

Chinese state media HK civic authorities of turning a blind eye to law-breaking anti-Beijing protesters:

China Daily

@ChinaDaily

Radical protesters stormed Yuen Long MTR station in last night, destroying public infrastructures. But ironically, the MTR chose to open train doors to aid their escape from the scene after the riot.

Embedded video

Communist Party-owned China Daily, for example, condemned what it described as follows:

Ironically, the MTR chose to let the criminals go by opening train doors to aid their escape from the scene. This utter disrespect of public order is irresponsible for public safety.

Indeed, video captured the moments the bulk of the protesters effortlessly stepped aboard the train and called it a night after clashing with police, concealing their exit with fire extinguishers amid the chaotic scene.

The HK protesters are increasingly attempting to occupy public infrastructure vital to the functioning of the city as an economic powerhouse, which would give greater leverage in seeing their anti-Beijing demands met.

Jeffie Lam

@jeffielam

Protesters trying to block the doors of the train to ensure everybody can get home safe

Embedded video

Images of metro station takeovers and similar acts, however, will be used as justification for if and/or when a mainland security forces crackdown comes inside the semi-autonomous city.

end

 

The Hong Kong native held in Shenzen has been arrested for visiting a prostitute.

We hope that this does not turn into a powder keg

(zerohedge)

Beijing Says Missing Hong Kong Consulate Employee Arrested For Visiting Prostitute

The Hong Kong consulate employee who vanished two weeks ago after attending a conference across the border in Shenzen was reportedly detained after visiting a prostitute, according to a report in a Chinese newspaper that was cited by Bloomberg.

Simon Cheng, the 28-year-old employee at the UK consulate in Hong Kong, mysteriously vanished after alerting his girlfriend via text that he was having issues re-entering Hong Kong following the conference. “Pray for me,” was purportedly the last thing he sent her before going silent.

Cheng has already been in custody for two weeks. Amusingly,the consulate said nothing about Cheng’s disappearance and detention until it was seemingly forced to issue a statement after Cheng’s girlfriend went to the press. Beijing initially denied that Cheng was in custody, but on Wednesday, the foreign ministry admitted that Cheng was being held under a 15-day administrative detention over what it described as a “domestic issue.”

Simon Cheng

Now, those 15 days are nearly up (Friday marks day 15), and police in Shenzen, who apprehended Cheng are offering more details about his detention.

Cheng “violated the 66 article of China’s law on administrative penalties for public security, which states that people who engage in prostitution or visit prostitutes shall be detained for no less than 10 days but no more than 15 days,” the Global Times newspaper said. The paper also insisted that Cheng asked police not to notify his family about his detention. It’s still not clear whether Cheng is a native of Hong Kong or if he was born and raised elsewhere.

Unsurprisingly, BBG reported that the CPC has often used charges of visiting prostitutes as a catch-all to detain Hong Kongers traveling in mainland China.

Allegations of visiting prostitutes have later proved false in other instances where Hong Kong residents have been detained in China. A Hong Kong lawmaker apologized after accusing bookseller and Communist Party critic Lee Bo of visiting prostitutes, the South China Morning Post reported in 2016.

Separately, allegations of sexual impropriety have appeared alongside political corruption charges in the trials of senior Chinese politicians Bo Xilai, Zhou Yongkang and Sun Zhengcai.

Meanwhile, GT editor-in-chief Hu Xijin accused the western media of politicizing Cheng’s case, claiming that the media have now “ruined” him, and that the understanding local party functionaries had been willing to try and limit damage to his reputation…

Hu Xijin 胡锡进

@HuXijin_GT

According to police, Simon Cheng, an employee of the British consulate in HK, was detained in Shenzhen for visiting prostitute. Police didn’t contact his family requested by Cheng. Police are willing to help reduce damage to his reputation, UK diplomats and media ruined him.

…But this account, which makes little sense, was widely mocked in the replies to Hu’s tweet.

Anil@anilvohra69

Chinese police wanted to keep info secret to be able to blackmail him for the rest of his life but nasty UK diplomats put an end to the brilliant Chinese plan. Now undercover Chinese policewoman who played role of prostitute will be forced to take desk job.

Cheng’s girlfriend and his family reportedly filed a missing persons report with the Hong Kong police after Cheng disappeared on his way back from a trade fair in Shenzen.

Looks like he’s going to have some explaining to do when he finally gets back to Hong Kong (assuming he isn’t held indefinitely on espionage charges like a former Canadian diplomat and a China-based Canadian businessman).

end

We reported to you that the CEO of Hong Kong based Cathay Pacific was forced out of his position by Mainland China. Now we hear that crewmembers are terrified.  They hide their cell phones when flights land in the Mainland.

(zerohedge)

“I Feel So Scared”: Why Crewmembers Of Hong Kong’s Biggest Airline Are Terrified Of China

Roughly a week to the day that pressure from Beijing forced out the CEO Of Cathay Pacific airlines and one of his deputies (both “quit” under pressure from Beijing’s airline regulator and mainland companies aligned with the CPC), the Washington Post published a long-winded story based off of interviews with more than a dozen employees of the iconic airline, which has for so long been closely associated with Hong Kong and its culture.

In its report, WaPo confirms that employees of the airline feel trapped in a “climate of fear and mistrust”as Communist functionaries increasingly subject flight crews to searches and seizure to root out anybody who has openly, or privately, expressed support for the #antiELAB protests that began nearly three months ago.

Crews have resorted to stashing their smartphones in service carts and other ploys to avoid being searched and having the contents of their phones downloaded.

Already, several employees and at least three pilots have left the airline over their purported support for the protests (a sign that Beijing isn’t only interested in purging upper management).

Indeed, Cathay employees suspect they are being ‘singled out’ because of their company’s status.

As the Chinese state zeroes in on individuals suspected of supporting ongoing protests against Beijing’s influence in Hong Kong, it has singled out Cathay Pacific,the flagship Hong Kong airline that is among the city’s biggest employers and most globally recognized brands, subjecting its staff to unprecedented scrutiny.

We are panicked,”said one flight attendant who has worked for the airline for seven years.

[…]

I feel so scared, like we have lost our ability to voice our opinions, our concerns and our hopes without feeling the authority of China,” said another flight attendant, age 26.

The impact that the protests have had on Cathay, ostensibly a developed, multinational corporation, has raised questions about whether HK can maintain any sort of autonomy long-term under the “one country, two systems” doctrine that had allowed it a fair amount of autonomy until not that long ago. The first inklings came during the umbrella movement in 2014. Now, the extradition bill protests – which have morphed into a broader pro-democracy movement – have become the system’s first major test.

 

If it fails, HK’s economy could be in serious jeopardy, as Kyle Bass explained might happen in a research report from earlier this year.

In a series of tweets sent Thursday morning, Bass warned that pro-Beijing lawmakers had been subtly hinting that a massive crackdown would result if the protests lasted another week and a half.

Kyle Bass

@Jkylebass

china daily @ChinaDaily shows a video of the ccp thugs staging violence in a Hong Kong train station. Fascinating how the “police” are absent and the thugs were whisked away on the train. Pooh and piglet are scheming to bring in the PAP and the PLA from Shenzhen before Oct 1st. https://twitter.com/ChinaDaily/status/1164488634394800128 

China Daily

@ChinaDaily

Radical protesters stormed Yuen Long MTR station in #HongKong last night, destroying public infrastructures. But ironically, the MTR chose to open train doors to aid their escape from the scene after the riot. #香港

Embedded video

Kyle Bass

@Jkylebass

We saw a senior pro-beijing lawmaker in Hong Kong give the protestors “10 days” yesterday. He then said that these protests cannot last going into the 70th anniversary of the communist party in china….which is October 1st.

And he’s probably got a point: Under no circumstances will Beijing allow this movement to endure through the 70th anniversary of Communist Party rule on Oct. 1

END.

Beijing furious after a USA ship enters the Taiwan Strait

(zerohedge)

Beijing Enraged After US Navy Ship Sails Through Taiwan Strait

With the 70th anniversary of the founding of the CPC looming, and Beijing staking out a more aggressive trade stance Friday morning by threatening retaliatory tariffs, the US picked the best – or worst – time to provoke Beijing, when a Navy ship sailed through the Taiwan Strait in the Navy’s latest “freedom of navigation” operation, or ‘freeop’ on Friday.

As CNA points out, Washington has actually increased its antagonistic operations in the Taiwan Strait as tensions with Beijing have soared this year, and Friday’s mission risks stoking tensions even further, as Beijing has warned international powers not to interfere in its relationship with Taiwan, or risk provoking Beijing’s wrath.

Yet interfering is precisely what the US has done, and earlier this month, Beijing denounced the sale of $2.2 billion in weapons to Taiwan by the US. Beijing has been ramping up pressure to assert its sovereignty over the island, which it considers a wayward province.

 

Commander Reann Mommsen, a spokeswoman for the US Navy’s Seventh Fleet, said the operation in the 111-mile wide waterway separating Taiwan from China “demonstrates the US commitment to a free and open Indo-Pacific.”

Mommsen identified the ship as the Green Bay, an amphibious transport dock ship, hinting at a possible marine transport to the controversial island. Typically, these missions are carried out using destroyer-class ships.

Taiwan’s Defense Ministry said in a statement that the island’s military had a full grasp of the situation in the Strait and closely monitored it.Washington has no formal ties with Taiwan, but the US is bound by law to help defend the island nation should it be attacked. The US is also its primary source of arms.

END
Graham Summers is correct on the following commentary so please pay attention.  The total of all corporate and sovereign debt denominated in USA dollars is $40 trillion of which $38 trillion  is owed to Chinese banks and other  Chinese enterprises (state owned banks).  Two trillion dollars is owed to foreign banks and this is the number that Graham Summers is harping at.The game is over when China cannot get its hands on the dollars it needs and they then need to use their official USA reserves to bail out badly needed companies.  Kyle Bass has also stated this in his latest commentaries
(courtesy Graham Summers)
The China Black Swan No One’s Talking About

The dirty little secret is that China is running a massive US dollar shortage both on a corporate and a national level.All told, Chinese companies have roughly $2 trillion US dollar-denominated in debt owed to international investors.Because this debt is denominated in US dollars, this means the companies need to pay both the principal AND the interest payments to their lenders in US dollars.However, China cannot print US dollars. Which means these firms either need to sell assets for US dollars or go bust.That process has already begun on a corporate level.Unbeknownst to most investors, China had its first major bank failure in 20 years earlier this year. On top of this, as of mid-July, Chinese firms have defaulted on nearly $5 billion in debt this year, which exceeds the previous FULL YEAR record set in 2016.At some point this situation will come to a head. When it does, China will forced to sell its FX reserves (some $3 trillion) to get access to US dollars to help prop up systemically important firms.This is what the stock market has been seeing for the last 12 months. It’s why stocks are struggling to hit new highs, despite the Fed cutting rates for the first time since 2008.
GPC82219.pngTHAT is the ultimate End Game here. The second largest economy, China, in the world is on the verge of massive devaluation.

END

Then this afternoon:

The Yuan Is Crashing

According to CNBC, Trump is currently meeting with his trade aides…

  • TRUMP MEETING WITH HIS TRADE AIDES NOW, CNBC REPORTS

… to decide what additional measures and tariffs to declare against China, and if there is one currency that Trump’s economic team is currently keeping an eye on it is China’s yuan.

What said team is seeing is nothing short of carnage, because – somewhat paradoxically – even as the Bloomberg dollar index is plunging ever since Trump unleashed his tirade targeting China for daring to retaliate to US tariffs, the offshore yuan is plunging even more, tumbling below 7.13 – a new 11.5 year low – in what the White House can correctly interpret as official intervention to weaken the currency which should be rising against the greenback, yet is doing precisely the opposite.

Which brings us to the only possible question: when will the US intervene in the FX market, and how much offshore Yuan will the US Treasury buy. As a reminder, the US could deploy up to $146 billion in yuan purchasing power if intervention was launched, the combination of the Treasury’s Exchange Stabilization Fund and the central bank’s firepower.

“If an intervention does go ahead, I think the US would probably target specific currencies such as the renminbi, rather than attempt to achieve broad-based dollar weakness,” said Stephen Oh, global head of credit and fixed income at PineBridge Capital, which manages $97bn of assets.

The only question then is how will China respond. And luckily, we wrote an article on precisely that last night, and noted that top Chinese bankers in London warned that the “drama” that would follow any US attempt to weaken the dollar by intervening in renminbi markets — a move that would be seen by Beijing as a “political act.” A hostile “political act.”

Yet such an act looks increasingly likely after Trump has repeatedly taken aim at China (and Europe) both on Twitter and elsewhere for “playing currency games” as the trade war has morphed into a currency war, if not a full-blown one yet.

* *  *

How likely is that the US and China would launch all out currency war at each other in the FX market?

Last month US Treasury secretary Steven Mnuchin said there was no change “as of now” to America’s currency policy but added that a different stance could be considered in the future. To be sure, investors are growing more cautious and are increasingly unwilling to short the yuan over fears of a surprise intervention by the US. One head of a currency trading platform that serves US hedge funds told the FT that his clients have begun to stay away. “They don’t want to be on the wrong side of the Fed.” Something tells us that neither does China.

end

4/EUROPEAN AFFAIRS

UK

My goodness, this came out of left field.. The Bank of England’s Mark Carney urges replacing the dollar with a bitcoin like reserve currency.  The problem is all paper currencies will eventually trade at its intrinsic value and value is zero

(zerohedge)

In Unprecedented, Shocking Proposal, BOE’s Mark Carney Urges Replacing Dollar With Libra-Like Reserve Currency

After Jerome Powell’s neutral-to-slightly-dovish-but-mostly-boring speech on Friday morning, investors could be forgiven for suspecting that this year’s Fed-sponsored gathering in Jackson Hole might be disappointingly dull (especially with all that’s going on in Trump’s twitter feed, the escalating trade war and escalating geopolitical unrest).

Then along came former Goldman banker and current (outgoing) BOE governor, Mark Carney, who in his lunchtime address laid out a shocking, radical proposal – perhaps the most stunning thing to ever be unveiled at Jackson Hole – urging to replace the US Dollar with a “Libra-like” reserve currency in a dramatic revamp of the global monetary, financial and economic order.

While it was unclear if Carney was focusing on Libra as the new reserve currency, or simply was hoping to find something against which the dollar could be devalued, the proposal was clearly shocking as it suggests that the central bank quiet acceptance of cryptocurrencies (especially in Japan) has been what many have speculated all along: a “currency” against which fiat money can be devalued in hopes of sparking fiat hyperinflation that inflates away record amounts of fiat debt.

Of course, such a new system would bring about the end of US hegemony, and effectively end the dollar-based global financial system, dramatically scaling back the US’s influence in the global economy, and making rising powers like China and Russia critical players an increasingly multipolar world…. especially if they propose a gold-backed dollar alternative to the world. That this would quickly emerge as the new reserve currency – together with whatever stablecoin/crypto central bankers deign to be the dollar’s replacement – goes without saying.

Carney’s proposal comes just a few months before he’s due to step down from his position leading the Bank of England.

We note that, because it is a well known fact that central bankers tend to speak the truth once they have quit their position of power and influence. Yet it is quite shocking for Carnery to do so while still in office; the bottom line, Carney sounded like nothing less than an Austrian-school economist, who admits that the existing neo-liberal/Keynesian system has collapsed.

Speaking to fellow policy makers and academics at Jackson Hole, Wyoming, he said that in the short term central bankers must deal with the situation as it is. But he also warned that “blithe acceptance of the status quo is misguided,” and dramatic steps will ultimately be needed. It’s what he said next that was stunning:

“In the longer term, we need to change the game,” Carney said. “When change comes, it shouldn’t be to swap one currency hegemon for another.”

This is where, if Carney indeed speaks for his central banking peers, one can say “game over” for the fiat system, which now even establishment members admit will need to devalue against something outside of the fiat system, such as Gold (as Pimco’s Harley Bassman suggested back in 2016), or cryptocurrency/stable coins, like Libra.

There has hardly been a more appropriate time for such a proposal. Trade wars and now the threat of currency wars are upending multilateral cooperation. Central bankers are trapped in a low interest-rate world,and the threat of Modern Monetary Theory has reared its ugly head. Yet, the establishment has so far been unable to come up with its own alternative to combat MMT.

“The combination of heightened economic policy uncertainty, outright protectionism and concerns that further, negative shocks could not be adequately offset because of limited policy space is exacerbating the disinflationary bias in the global economy,” Carney said. “What then must be done?”

Well, the creation of a virtual non-fiat currency, against which all other central-bank backed fiat currencies could be devalued, is certainly one solution.

zerohedge@zerohedge

There it is: Central Bankers are hoping to devalue all fiat currencies against crypto/stablecoin

83 people are talking about this

But if the notion that the economic establishment which Carney represents might some day accept these ideas sounds like a fantasy, that’s because it is.

zerohedge@zerohedge

And no, the world will never agree to make this thing the global currency hegemon

View image on Twitter
108 people are talking about this

Which means that the only practical alternative is a central bank endorsed cryptocurrency, or – wait for it – gold.

In light of this shocking capitulation by a member of the central bank establishment, we leave you with some levity, as the alternative is simply dire, and what happens next as the fiat world unwinds – or devalues against some non-fiat construct – will be very unpleasant for all those who are unprepared and had believed that central bankers actually know what they are doing. Luckily, none of our readers fall into that category.

zerohedge@zerohedge

Trump needs to hire Mark Carney as Fed Chief asap. Also, buy 100,000 gold calls now

48 people are talking about this

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

 

6.Global Issues

 

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1059 DOWN .0024 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /GREEN

 

 

USA/JAPAN YEN 106.65 UP 0.178 (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 1.2214   DOWN   0.0078  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3315 UP .0020 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  FRIDAY morning in Europe, the Euro FELL BY 24 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1059 Last night Shanghai COMPOSITE CLOSED UP 13.99 POINTS OR 0.49% 

 

//Hang Sang CLOSED UP 130.61 POINTS OR 0.50%

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

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 130.61 POINTS OR 0.50%

 

 

/SHANGHAI CLOSED UP 13.99 POINTS OR 0.49%

 

Australia BOURSE CLOSED UP   0.32% 

 

 

Nikkei (Japan) CLOSED UP 82.90  POINTS OR 0.40%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1496.50

silver:$17.08-

Early FRIDAY morning USA 10 year bond yield: 1.64% !!! UP 3 IN POINTS from THURSDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.13 UP 3  IN BASIS POINTS from THURSDAY night.

USA dollar index early THURSDAY morning: 98.42 UP 28 CENT(S) from  THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING

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And now your closing FRIDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.16% DOWN 1 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.23%  DOWN 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.14%//DOWN 0 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,32 up 1 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 118 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.68% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 2.00% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR FRIDAY

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

Euro/USA 1.1147 UP     .0064 or 64 basis points

USA/Japan: 105.31 DOWN 1.178 OR YEN UP 118  basis points/

Great Britain/USA 1.2260 UP .0009 POUND UP 9  BASIS POINTS)

Canadian dollar DOWN 26 basis points to 1.33206

 

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The USA/Yuan,CNY: AT 7.0956    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.1294  (YUAN DOWN)..GETTING REALLY REALLY REALLY DANGEROUS

TURKISH LIRA:  5.7717 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.23%

 

Your closing 10 yr US bond yield DOWN 9 IN basis points from THURSDAY at 1.52 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.03 DOWN 7 in basis points on the day

Your closing USA dollar index, 97.96 DOWN 41  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 33.20  0.47%

German Dax :  CLOSED DOWN 135.53 POINTS OR 1.15%

 

Paris Cac CLOSED DOWN 61.38 POINTS 1.14%

Spain IBEX CLOSED DOWN 66.90 POINTS or 0.77%

Italian MIB: CLOSED DOWN 343.13 POINTS OR 1.65%

 

 

 

 

 

WTI Oil price; 53.62 12:00  PM  EST

Brent Oil: 58.55 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    66.16  THE CROSS LOW BY 0.52 RUBLES/DOLLAR (RUBLE HIGHER BY 52 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.68 FOR THE 10 YR BOND 1.00 PM EST EST

END

 

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

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

WTI CRUDE OIL PRICE 4:30 PM :  53.99//

 

 

BRENT :  59.11

USA 10 YR BOND YIELD: … 1.52..DOWN 9 BASIS PTS…

 

 

 

USA 30 YR BOND YIELD: 2.02..DOWN 9 BASIS PTS

 

 

 

 

 

EURO/USA 1.1148 ( UP 64   BASIS POINTS)

USA/JAPANESE YEN:105,36 DOWN 1.120 (YEN UP 112 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.63 DOWN 54 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2292 UP 40  POINTS

 

the Turkish lira close: 5.7672

 

 

the Russian rouble 66.02   DOWN 0.39 Roubles against the uSA dollar.( DOWN 39 BASIS POINTS)

Canadian dollar:  1.3292 UP 4 BASIS pts

USA/CHINESE YUAN (CNY) :  7.0956  (ONSHORE)/DEADLY

 

 

USA/CHINESE YUAN(CNH): 7/1332 (OFFSHORE)  DEADLY

 

German 10 yr bond yield at 5 pm: ,-0.64%

 

The Dow closed DOWN 623.34 POINTS OR 2.37%

 

NASDAQ closed DOWN 239.62 POINTS OR 3.00%

 


VOLATILITY INDEX:  19.63 CLOSED UP 2.95

LIBOR 3 MONTH DURATION: 2.132%//libor dropping like a stone

 

USA trading today in Graph Form

Stocks, Dollar, Yields Crash; Gold Explodes As Stunned Traders React To Series Of Surreal Events

Jerome Powell’s Jackson Hole speech was supposed to be the most important even of an otherwise sleepy, August day day, after which traders could quietly exit for the rest of the day and commence drinking. It did not quite work out that way.

Not only did Powell’s speech barely make the top 3 most important events, but Friday ended up being an exercise in surreal market newsflow, and one of the biggest drops of 2019 to boot.

With a few hours left before Jackson Hole, as traders were getting ready to trade Powell’s Jackson Hole speech which was a big dud, and did not reveal anything new (as even Trump figured out when he blasted the Fed chief slamming “As usual, the Fed did NOTHING!” and asking “who is our bigger enemy, Jay Powell or Chairman Xi?”), China shocked the market by unveiling that it would retaliate by slapping 10% tariffs on another $75BN in US imports, which sent stocks sharply lower at first. Then, Powell’s remarks managed to somewhat stabilize sentiment, and the S&P almost regained all losses… before all hell broke loose and in a vicious tirade, Trump first slammed Powell, effectively calling him an enemy of the state”, and then warned he would retaliate to China soon, while ordering US companies (can a US president dictate to companies what they can and can not do?) to find an “alternative” to China.

The result was a violent slam lower in risk assets, with the S&P tumbling over 70 points, the Dow plunging over 500 point, its 3rd such drop in the month of August, which has emerged as the worst month for stocks since December 2018…

 

… and the VIX soaring, just as dealers had exited their “negative gamma” hedges, forcing them all to load up on VIX futures all over again.

Every sector was lower on massive volume and wide breadth.

That said, not all hope was lost because a margin-call induced puke in the last 30 minutes of trading found support at the critical level of 2,834 below which the market simply will not allowed to pass… for now.

Not surprisingly, as risk tumbled, safe havens, soared, and as the 10Y yield tumbled…

… so did 2Y, which meant that the 2s10s yield was once again dipping in and out of negative territory all day.

Amid this wholesale panic out of safe havens, there were two surprises. Not the surge in gold, which exploded higher hitting a six and a half year high of $1,530…

… what was surprising was the plunge in the dollar – as traders feared that Trump would announce an outright currency market intervention to devalue the greenback – however as the yuan plunged even more…

… and even without an official statement from Trump – we are still waiting for the mystery afternoon announcement – the dollar index suffered its biggest one day drop in over a month.

There was not respite in commodities either, with oil tumbling after China announced it would apply tariffs on US oil imports, prompting traders to fear a drop in imminent collapse in global oil demand by the world’s largest oil importer.

What is most scary is that the day is not yet over, and we are now waiting with bated breath for the president to deliver on his promise of unveiling some other mystery response to China which he had not shared even with the Fed. As such, we expect that the reason for the violent flush in the last 30 minutes of trading had to do with traders wishing to be flat over a weekend, where any surreal development is now clearly possible.

Stay tuned.

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

MARKET TRADING//USA

a)Market trading/EARLY MORNING/USA

Beijing warns of retaliatory tariffs

(zerohedge)

Futures Hit After Global Times Warns Beijing Will Soon Unveil Retaliatory Tariff

With traders focused squarely on events in Wyoming this morning – the Jackson Hole day’s agenda can be found here, it notably lacks the presence of either Draghi or Kuroda, as if the old central bank guard is quietly being carted away – moments ago China gave markets a reminder that Beijing still has to disclose how it will retaliate to the upcoming $300BN in US tariffs on Chinese imports (which were delayed from Sept 1 to Dec 15).

This happened when China’s most famous twitter troll, Global Times editor in chief, Hu Xijin tweeted just after 6:30am that “China will take further countermeasures in response to US tariffs on $300 billion Chinese goods. Beijing will soon unveil a plan of imposing retaliatory tariffs on certain US products. China has ammunition to fight back. The US side will feel the pain.”

US equity futures, levitating merrily overnight without a care in the world, and certainly not concerned about a hawkish surprise from Powell in just over 3 hours when he delivers his J-Hole speech, were hit, giving up about a third of their gains in response amid a burst in trading volume.

So far Trump has resisted the temptation to tweet @ Hu, although we doubt this will last, and are eagerly looking forward to the quant chaos as algos try to make sense of the tweeter war between the world’s two most important twitter trolls in real time

end

Then: that did not take long;  China announces 75 billion in retaliatory tariffs on another 75 billion of goods destined from the  USA..also an extra 5% tariff on soybeans and on oil

(zerohedge)

Futures Plunge After China Announces Retaliatory Tariffs On Another $75BN In US Goods

Just over an hour after the Global Times’ Hu Xijing warned that China would announce retaliatory tariffs on certain US products, adding that “China has ammunition to fight back”, that’s precisely what happened when China’s Ministry of Finance said in statement posted on website late Friday that it would levy retaliatory tariffs on another $75BN in US goods with rates anywhere between 5 and 10%, with the tariffs set to be implemented in two batches, one at midnight on Sept 1 and another at midnight on Dec 15.

Additionally, China said it would resume 25% tariffs on US autos, stating that “China’s adoption of tariff-adding measures is a forced move to deal with US unilateralism and trade protectionism.”

Which is somewhat ironic, because of a time-zone difference quirk,it will in fact be China who will impose tariffs on the US first at midnight Beijing time, 12 hours before the US imposes its own tariffs on China.

The full Google-translated statement from the Ministry of Finance is below:

August 15, 2019, the US government announced that it would impose a 10% tariff on approximately US$300 billion of goods imported from China, which will be implemented in two batches from September 1 and December 15, 2019. The US measures have led to the continuous escalation of Sino-US economic and trade frictions, which have greatly harmed the interests of China, the United States and other countries, and have also seriously threatened the multilateral trading system and the principle of free trade.

In response to the above measures by the US, China was forced to take countermeasures.According to the “Customs Law of the People’s Republic of China”, “The Foreign Trade Law of the People’s Republic of China”, “Regulations on Import and Export Tariffs of the People’s Republic of China” and other basic laws and principles of international law, the State Council’s Customs Tariff Commission decided to produce 5078 originating in the United States. The tax items, about 75 billion US dollars of goods, plus 10%, 5% tariffs, in two batches from 12:01 on September 1, 2019, 12:01 on December 15 implementation.

Customs Tariff Commission of the State Council will continue to carry out the elimination of tariffed goods from the United States and Canada. In the list of 75 billion US dollars of goods, the excluded goods subject to review and approval, according to the exclusion method, do not levy the tariffs imposed by me for the anti-US 301 measures; the products that are not included in the first two batches of the scope of application for exclusion will be included in the third The scope of the batch can be applied for exclusion, and the application method will be announced separately.

s adoption of tariff-adding measures is a forced move to deal with US unilateralism and trade protectionism. The Chinese side once again reiterated that for China and the United States, cooperation is the only correct choice, and a win-win situation can lead to a better future. It is hoped that China and the United States will respect each other with mutual respect, mutual equality, words and trust, and words and deeds, resolve differences in a mutually acceptable way, and actively build a balanced, inclusive and win-win new Sino-US economic and trade order, and jointly safeguard and promote Reform and improve the multilateral trading system and promote mutually beneficial and win-win cooperation with other countries in the world.

 

The news sent US stock futures tumbling…

… the yuan tumbling…

Source: Bloomberg

… gold surging…

Source: Bloomberg

… and US 10Y yield sharply lower.

Source: Bloomberg

And then crude crashed as China clarified that an extra 5% tariff will be put on American soybeans and crude-oil imports starting next month

Meanwhile over in Jackson Hole:

zerohedge@zerohedge

Powell, on seeing the China news, realizing he now has to rewrite his entire speech

View image on Twitter

And the odds of a 50bps rate-cut in September just spiked back from yesterday’s plunge to zero…

Source: Bloomberg

And now we all await Trump’s angry reaction.

end

 

b)  1.MARKET TRADING/USA/LATE MORNING//a must read all 5 events

Powell/Jackson Hole Speech

Powell Hints At More Rate Cuts, Says “Economy In Favorable Place” But Warns Of “Significant Risks”

The much anticipated Jerome Powell Jackson Hole speech on “Challenges for Monetary Policy” (which is never translated live), is finally out, and the first thing that stands out is Powell’s comment that the economy is in a “favorable place,” but immediately refers to “significant risks” in a text that according to Bloomberg “ultimately appears to signal a rate cut at the FOMC’s September meeting.”

In what appears to be a last minute rewrite of his speech following today’s Chinese retaliation, Powell calls attention to an “eventful” three weeks since the July FOMC meeting, highlighting negative developments, including:

  • New tariffs on China
  • “Further evidence of a global slowdown, notably in Germany in China”
  • A sharp downward move of long-term bond rates around the world “to near post-crisis lows”

In a clear attempt to appease Trump, Powell says that “based on our assessment of the implications of these developments, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2 percent objective.”

Of note, Powell has devoted an entire section of his speech to trade uncertainties as a new challenge for monetary policy, which confirms that the more trade war escalates, the greater the Fed response, giving Trump a green light to escalate further.

A notable comment is that according to Powell, there are “no recent precedents to guide any policy response to the current situation.”

In his speech, the Fed chair also provides a historical tour of three different post-World-War-Two policy eras and their lessons for the Fed: the Great Inflation, the Great Moderation and the Great Recession, and adds that the Fed has learned how to tame inflation and has substantially improved the safety of the financial system, but is still unsure how to deal with the current era of super-low interest rates.

Of note, there are no explicit reference to a “mid-cycle adjustment” which was seen by many as the biggest hawkish threat, the result being that according to algos the speech is being seen as borderline dovish.

Here are the key highlights:

  • *POWELL: `WE WILL ACT AS APPROPRIATE TO SUSTAIN THE EXPANSION’
  • *POWELL: ECONOMY IN FAVORABLE PLACE, FACES `SIGNIFICANT RISKS’
  • *POWELL SAYS EVENTS SINCE THE JULY FOMC HAVE BEEN `EVENTFUL’
  • *POWELL: CAREFULLY WATCHING DEVELOPMENT FOR IMPACT ON U.S.
  • *POWELL: MONETARY POLICY HAS NO RULEBOOK FOR INTERNATIONAL TRADE
  • *POWELL: WE’VE SEEN FURTHER EVIDENCE OF A GLOBAL SLOWDOWN
  • *POWELL CITES BREXIT, HONG KONG, WEAKNESS IN GERMANY AND CHINA

Some more highlights:

  • *Fed’s Powell: Fed Will Act as Appropriate to Sustain the Expansion
  • *Powell: Three Weeks Since Last FOMC Meeting Have Been ‘Eventful’
  • *Powell: Fitting Trade Policy Into Risk-Management Framework Is a New Challenge
  • *Powell: Fed Faces Heightened Risk of Difficult-to-Escape Periods of Near-Zero Rates
  • *Powell: U.S. Economy Has Continued to Perform Well Overall
  • *Powell: Monetary Policy Cannot Provide Settled Rulebook for Trade
  • *Powell Sees Financial Stability Risks as Moderate, but Will Remain Vigilant
  • *Powell Sees Financial Stability Risks as Moderate, but Will Remain Vigilant
  • *Powell: Monetary Policy Cannot Provide Settled Rulebook for Trade
  • *Powell: Can Try to Look Through Passing Events, Focus on How Trade Affects Outlook

As expected, Powell also addressed the Fed’s ongoing policy review saying that “to address this new normal, we are conducting a public review of our monetary policy strategy, tools, and communications—the first of its kind for the Federal Reserve. We are evaluating the pros and cons of strategies that aim to reverse past misses of our inflation objective. We are examining the monetary policy tools we have used both in calm times and in crisis, and we are asking whether we should expand our toolkit. In addition, we are looking at how we might improve the communication of our policy framework

His full speech below (pdf link):

 end
2.  THEN  late morning:Trump unloads on the King Klown from Kstreet ,Jay Powell
(zerohedge)

Furious Trump Unloads On Fed: Asks “Who Is Our Bigger Enemy: Powell Or Xi”

Moments after J-Powell’s J-Hole speech hit, we summarized our longish take as follows: in the aftermath of Trump daring the Fed to “show their stuff”, Powell did not do that and instead…

zerohedge@zerohedge

TL/DR: The Fed did not show their stuff.

And now, over to Trump’s twitter account

We didn’t have long to wait, because with stocks unsure initially how to respond – they eventually did trade in the green as algos convinced themselves that Powell’s speech was more dovish than hawkish or just because shorts were forced to cover once again – Trump who was expecting much more from Powell, apparently he was hoping for a 100bps rate cut announcement or at least “some QE”, the president lashed out at Powell, and blasted on twitter:

As usual, the Fed did NOTHING! It is incredible that they can “speak” without knowing or asking what I am doing, which will be announced shortly. We have a very strong dollar and a very weak Fed. I will work “brilliantly” with both, and the U.S. will do great. My only question is, who is our bigger enemy, Jay Powel or Chairman Xi?”

It was not immediately clear what Trump was referring to by Powell not knowing what Trump “is doing”, or what he will announce shortly.

However, it is ironic that after stocks eventually hit session highs just before Trump’s tweet, they have since drifted lower, even as yields and the dollar slump, while gold is soaring. In other words, if stocks end up dropping now, and if Trump is looking for a culprit for today’s market action, he should look in the mirror.

Trump Was Right – The Dollar Just Hit An All-Time High!

Earlier in the week, President Trump tweeted (once again) frustratedly towards The Fed:

We are competing with many countries that have a far lower interest rate, and we should be lower than them. Yesterday, ‘highest Dollar in U.S.History.’ No inflation. Wake up Federal Reserve. “

So-called “fact-checkers” went wild proclaiming this fake news, lies, and more confirmation that President Trump is against the historical establishment line of a “strong dollar” policy.

There’s just one thing! They’re all wrong! And Trump was right. The naysayers mistake was to use individual FX pairs or simple narrow dollar indices to judge the relative strength of the dollar.

The FACT is that the USDollar  – at its broadest against all of its world trading partners – has never, since Bretton Woods, been stronger than it is today…

Source: Bloomberg

The point of bringing this up now – other than fact-checking the fact-checkers and confirming President Trump was right – is that this record high value of the USDollar against all of its trading partners suggests USD intervention (oral or actual) is virtually assured.

However, the dollar is losing ground against one form of ‘money’…

Source: Bloomberg

That is a serious regime change, trade accordingly.

END

4. 11:30 AM//Then the dollar tumbles on speculation of FX intervention

(zerohedge)

Dollar Tumbles On Speculation Trump To Announce FX Intervention “Shortly”

While Trump’s latest Powell lashing on twitter was most notable for the dramatic criticism of the Fed chair, after Trump said “My only question is, who is our bigger enemy, Jay Powell or Chairman Xi?”, what was far more interesting in the Trump tweet and what got far less attention, was Trump’s disclosure that the Fed is speaking “without knowing or asking what I am doing, which will be announced shortly.

The question, of course, is what will Trump be announcing that the Fed is still not privy of, with speculation spreading among trading desks that, as discussed last night, Trump may have had enough of a soaring dollar, which just hit an all time high against in trade weighted terms, and will instruct the Treasury’s Exchange Stabiliziation Fund to intervene, potentially by buying yuan in the offshore market, to devalue the USD against the Chinese currency.

Sure enough, one look at the suddenly plunging dollar and it’s immediately clear that traders are suddenly terrified that the US may take aggressive – and unilateral – action against the USD “shortly.”

END

 

5.  11.35//

Stocks now plunge after Trump vows to retaliate against China this afternoon.

(zerohedge)

Stocks Plunge After Trump Vows To Retaliate To China “This Afternoon”, Orders US Companies To Find “An Alternative To China”

Anyone who was hoping for a quiet end to the week is currently having a panic attack, as first China announced new tariffs on the US, then Powell’s J-Hole speech came and went, and then, as we expected, Trump responded to China’s trade war escalation when in a barrage of 4 tweets he lashed out at Beijing, saying “We don’t need China and, frankly, would be far better off without them“, and ordered “Our great American companies… to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.

He also ordered “all carriers, including Fed Ex, Amazon, UPS and the Post Office, to SEARCH FOR & REFUSE, all deliveries of Fentanyl from China (or anywhere else!). Fentanyl kills 100,000 Americans a year. President Xi said this would stop – it didn’t.”

The reason for Trump’s ire: the continued theft of US IP over the years:

Our Country has lost, stupidly, Trillions of Dollars with China over many years. They have stolen our Intellectual Property at a rate of Hundreds of Billions of Dollars a year, & they want to continue. I won’t let that happen! We don’t need China and, frankly, would be far better off without them

But Trump wasn’t finished, and filling traders with dread what he may announce next, he promised that “I will be responding to China’s Tariffs this afternoon.”

We can’t wait to see what Trump unveils in his pursuit of Quantitative Easing sparked by global economic war, just as we explained three days ago in “Mr. President, This Is How To Get The Fed To Launch Quantitative Easing“.

From Trump:

Our Country has lost, stupidly, Trillions of Dollars with China over many years. They have stolen our Intellectual Property at a rate of Hundreds of Billions of Dollars a year, & they want to continue. I won’t let that happen! We don’t need China and, frankly, would be far better off without them.

The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP.

Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing your companies HOME and making your products in the USA.

I will be responding to China’s Tariffs this afternoon. This is a GREAT opportunity for the United States.

Also, I am ordering all carriers, including Fed Ex, Amazon, UPS and the Post Office, to SEARCH FOR & REFUSE, all deliveries of Fentanyl from China (or anywhere else!). Fentanyl kills 100,000 Americans a year. President Xi said this would stop – it didn’t.

Our Economy, because of our gains in the last 2 1/2 years, is MUCH larger than that of China. We will keep it that way!

Donald J. Trump

@realDonaldTrump

Our Country has lost, stupidly, Trillions of Dollars with China over many years. They have stolen our Intellectual Property at a rate of Hundreds of Billions of Dollars a year, & they want to continue. I won’t let that happen! We don’t need China and, frankly, would be far….

Donald J. Trump

@realDonaldTrump

….better off without them. The vast amounts of money made and stolen by China from the United States, year after year, for decades, will and must STOP. Our great American companies are hereby ordered to immediately start looking for an alternative to China, including bringing..

Donald J. Trump

@realDonaldTrump

….your companies HOME and making your products in the USA. I will be responding to China’s Tariffs this afternoon. This is a GREAT opportunity for the United States. Also, I am ordering all carriers, including Fed Ex, Amazon, UPS and the Post Office, to SEARCH FOR & REFUSE,….

Donald J. Trump

@realDonaldTrump

….all deliveries of Fentanyl from China (or anywhere else!). Fentanyl kills 100,000 Americans a year. President Xi said this would stop – it didn’t. Our Economy, because of our gains in the last 2 1/2 years, is MUCH larger than that of China. We will keep it that way!

Both yields and stocks tumbled on this “unexpected” escalation…

… while the dollar plunge accelerated amid the earlier chatter that Trump may announce FX intervention “shortly” …

… which in turn sent gold soaring to $1,530.

end

ii)Market data/USA

iii) Important USA Economic Stories

This is not good as collateral seems to be non existent..the loan market froze after only 5 deals totally 1,3 billion dollars was quietly pulled

(zerohedge)

Loan Market Freezing Up Again After 5 Deals For $1.3BN Quietly Pulled

While stocks have a ways to drop before they catch down to the December 2018 lows, one market is starting to feel dangerously similar to the late 2019 chaos. As readers will recall, the first market to get whacked in Q4 was the leveraged loan market which froze up virtually overnight as countless deals were pulled due to “market conditions.” That time is again now, because no less than five leverage loan deals for a total of $1.3 trillion have been pulled in the past few weeks, a harbinger of a far more ominous lock up in the fixed income market.

The latest deal to get pulled was a loan by Vewd Software, a streaming-service provider, which joined peers such as Golden Hippo, Glass Mountain Pipeline Holdings, Chief Power Finance and fitness-center builder Life Time, all of whom hoped to raise funds in the secured debt market, and found the market too cold.

For much of the past 3 years, the leveraged loan market grew at a breakneck pace, courtesy of the Fed’s tightening which pushed up the libor floor on loan deals, promising rates that kept up with the Fed Funds rate. As such, it quietly emerged as a favorite of private equity firms, funding payouts to partners and buyouts of targeted companies at record-low borrowing costs for a decade, doubling in size to about $1.2 trillion and even surpassing the total size of the US junk bond market.

And now, for the second time in under a year, the loan market is experiencing a “rare moment of sobriety” according to Bloomberg, as investors who smell a recession – and far more rate cuts – shy away from companies that just a few months ago might have had no problem to sell loans.

 

Besides deals that were pulled outright, new issuers are finding a far more hostile reception, with some borrowers forced to pay much more than they originally planned when they came to market. The trigger: now that the Fed has entered an easing cycle, further LIBOR upside is a thing of the past, while the possibility of continued rate cuts by the Federal Reserve has killed the attractiveness of floating-rate deals less attractive, while companies vulnerable to trade wars have had to promise even higher yields.

Speaking to Bloomberg, Jeff Cohen, global head of levfin capital markets at Credit Suisse said that the market has seen “widely divergent pricing outcomes.”

One example of a firm finding market conditions less than hospitable was DNA-testing firm Ancestry.com which increased the pricing of a loan financing a dividend to its private equity owners, and which also reduced the size of the payout by $200 million.

Another firm had to sharply hike the yield on its offering to find investor demand: Total Safety, owned by private equity firm Littlejohn & Co., priced a $367.5 million loan this month to finance its acquisition of Sprint Safety at a discount of 93 cents on the dollar – one of the steepest discounts this year according to Bloomberg, which also noted that the yield on the debt spied to about 10%. Banks arranging the loan offering the buyout of independent broker-dealer Advisor Group also had to sweeten terms, as did other private equity firms that launched loans with increasingly aggressive terms they later had to scale back.

That said, we are still some ways away from the total loan market freeze observed for a few weeks in December: even with the current “loan lull” which has affected some $1.3 billion in loan notional, over $28 billion of leveraged loans managed to price successfully this month as bankers cranked out deals before a late summer lull.

Yet curiously, despite the broad improvement in the leverage loan market since the December fiasco, one wouldn’t know it by looking at investor fund flows: indeed, retail fund flows have been negative for 39 straight weeks starting in late 2018 – the longest such run ever – as most retail investors have boycotted the asset class.

But if the one traditional buyer is absent, who is buying? The answer: CLOs of course, although these have a limit on how much lower-rated debt they can buy. Even so, as Drew Sweeney, a managing director at TCW Group told Bloomberg, while the appetite for lower-rated debt among managers of collateralized loan obligations will be limited, the still-expanding CLO market has plenty of cash looking for a home.

“I do think there will be demand for higher-quality paper from almost every constituent — CLOs, retail and crossover investors,” Sweeney said.

Even with the neverending CLO bid – much of which funded by Japanese pensioners – cyclical companies could have an uphill battle selling debt with recession fears buzzing, and some bankers have found themselves wrong-footed by investors’ sudden aversion to risk. One example noted by Bloomberg, includes a group of banks led by Barclays and Deutsche Bank, which held on to at least half of the $1.7 billion-equivalent of loans they arranged earlier this year for Advent International Corp.’s buyout of an Evonik Industries AG plastics division, as the banks couldn’t find enough willing investors with whom to park the debt.

What happens next? Well, there are two options: either the market freeze continues as the December 2018 “Ice-Nine” of the loan market indefinitely postpones the entire pipeline, or the more optimistic investors end up being right: they are merely waiting to approach the market after Labor Day on Sept. 2, when the liquidity – they hope – will return to the market. That’s when we will also see just how easy it will be for a consortium of banks to sell a whopping $7 billion loan to help finance the merger of T-Mobile US and Sprint.

END

Ruth Ginsberg

this is a tough cancer but they were able to radiate the tumour. She will go back to work.  There is no way that the Dems will allow her to retire. She will die with her job.

(zerohedge)

Ruth Bader Ginsburg Treated For Pancreatic Cancer

Ruth Bader Ginsburg, the 86-year-old Supreme Court Justice, has been treated for a tumor on her pancreas, according to media reports.

The long-time SCOTUS member completed a three-week course of stereotactic ablative radiation therapy at Sloan Kettering in NYC on Friday.

The focused radiation treatment began on Aug. 5 and was administered on an outpatient basis, according to a statement from SCOTUS. The tumor was first detected after a routine blood test in early July, and a biopsy performed on July 31 at Sloan Kettering confirmed the tumor was malignant.

 

As part of her treatment, a bile duct slant was placed.

The Justice tolerated treatment well. She canceled her annual summer trip to Santa Fe, but has otherwise maintained an active schedule. The tumor was treated definitively and there is no evidence of disease elsewhere in the body. Justice Ginsburg will continue to have periodic blood tests and scans. No further treatment is needed at this time.

This isn’t Ginsburg’s first brush with cancer: She was treated for early stage pancreatic cancer in 2009, per WaPo.

Before that, she was treated, and beat, colon cancer.

But instead of retiring, Ginsburg has opted to stay on at the Supreme Court, perhaps because of how Mitch McConnell handled the nomination of Merrick Garland.

* * *

When President Trump won the 2016 GOP presidential nomination, he did so under a tacit agreement: Should he win the presidency, he would appoint as many conservative judges and SCOTUS justices as possible. And with the GOP firmly in control of the Senate, there wouldn’t be much to stand in his way.

The arrangement has been incredibly successful so far: Trump has appointed two new conservative justices, as well as dozens of conservative judges. Now, American conservatives must double-down on their support for Trump (which shouldn’t be hard given his massive popularity among Republicans) or risk losing a Supreme Court seat.

 

end

Trump retaliates and hikes tariffs on Chinese goods as the trade war escalates

(zerohedge)

Trump Hikes Tariffs On Chinese Goods In Retaliation To Trade War Escalation

As widely expected, and as he himself previewed earlier in the day, Trump was set to unveil a major development in the US-China trade war this afternoon. That happened moments ago, when the president, in a series of 4 tweets, confirmed that he indeed was hiking tariffs on both existing and future China tariffs.

Specifically, Trump announced that in response to the $75 billion in tariffs that China just imposed on the US this morning – which “should not have” been put on as they were “politically motivated” – starting October 1, the existing 25% tariffs on $250BN in Chinese goods would rise to 30%, and the 10% tariffs on $300 billion in Chinese goods set to begin on September 1 will be 15%.

Here is the Trump announcement:

For many years China (and many other countries) has been taking advantage of the United States on Trade, Intellectual Property Theft, and much more.

Our Country has been losing HUNDREDS OF BILLIONS OF DOLLARS a year to China, with no end in sight.

Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer.

As President, I can no longer allow this to happen! In the spirit of achieving Fair Trade, we must Balance this very unfair Trading Relationship.

China should not have put new Tariffs on 75 BILLION DOLLARS of United States product (politically motivated!).

Starting on October 1st, the 250 BILLION DOLLARS of goods and products from China, currently being taxed at 25%, will be taxed at 30%.

Additionally, the remaining 300 BILLION DOLLARS of goods and products from China, that was being taxed from September 1st at 10%, will now be taxed at 15%. Thank you for your attention to this matter!

 

And the tweets themselves:

Donald J. Trump

@realDonaldTrump

For many years China (and many other countries) has been taking advantage of the United States on Trade, Intellectual Property Theft, and much more. Our Country has been losing HUNDREDS OF BILLIONS OF DOLLARS a year to China, with no end in sight….

Donald J. Trump

@realDonaldTrump

….Sadly, past Administrations have allowed China to get so far ahead of Fair and Balanced Trade that it has become a great burden to the American Taxpayer. As President, I can no longer allow this to happen! In the spirit of achieving Fair Trade, we must Balance this very….

Donald J. Trump

@realDonaldTrump

…unfair Trading Relationship. China should not have put new Tariffs on 75 BILLION DOLLARS of United States product (politically motivated!). Starting on October 1st, the 250 BILLION DOLLARS of goods and products from China, currently being taxed at 25%, will be taxed at 30%…

Donald J. Trump

@realDonaldTrump

…Additionally, the remaining 300 BILLION DOLLARS of goods and products from China, that was being taxed from September 1st at 10%, will now be taxed at 15%. Thank you for your attention to this matter!

Of course, all of this was perfectly predictable the moment Jerome Powell underwrote Trump’s trade war, when he said on July 31 the Fed is now focusing on “global developments”, effectively assuring he would keep cutting rates the more trade war between the US and China escalated.

And now we await China’s retaliation as Beijing has no choice but to retaliate again in tit-for-tat fashion, and is likely to hike the rate on its own tariffs targeting US goods, which will then prompt Trump to raise tariffs even more, at which point China will retaliate in kind, until eventually all trade between the US and China grinds to a halt, at which point the question is which country will succumb to recession and/or social unrest first.

Meanwhile, the real news this afternoon, is that there was still no announcement of currency intervention by Trump, or rather not yet. We expect that to come some time in the next 2-4 weeks.

end

iv) Swamp commentaries

We now have a two tiered legal system as Comey and the FBI totally ignored highly classified Hillary Clinton emails. So far Barr is silent

(zerohedge)

Comey FBI Willfully Ignored “Highly Classified” Hillary Clinton Emails; Barr Radio Silent

President Obama’s FBI, ran by disgraced former director James Comey, knew about – but purposefully ignored – “highly classified” evidence in the Hillary Clinton email investigation before they downgraded their initial assessment of her crime from a felony to a “grossly negligent” mistake.

As The Hill‘s John Solomon reports, a Senate staff memo updating an ongoing inquiry by Sens. Chuck Grassley (R-IA) and Sen. Ron Johnson (R-WI) reveals that the FBI decided to back off their pursuit of this damning evidence “even though the agents believed access to the sensitive evidence was “necessary” to complete the investigation,” writes Solomon.

 

James Comey, Andrew McCabe, Peter Strzok

What’s worse, Trump’s DOJ has known about this egregious failure of justice since at least 2018 thanks to a classified report by the agency’s Inspector General Michael Horowitz, who explained what happened in a briefing.

But Johnson and Grassley have been unable to get answers for a year, even from Attorney General William Barr, about whether the FBI intends to look at the critical evidence it skipped back in 2016.

The Senate staff memo succinctly lays out just how egregious the FBI’s decision was in 2016.

The inspector general’s “appendix raised a number of serious questions because, as explained on page 154 of the unclassified DOJ IG report, the FBI decided not to seek access to certain highly classified information potentially relevant to the investigation despite members of the FBI case team referring to the review as a ‘necessary’ part of the investigation,” the Senate staff wrote. –The Hill

“As a result of the findings in that appendix, Senator Grassley wrote a classified letter to DOJ on October 17, 2018, which remains unanswered. On January 15, 2019, at Mr. Barr’s nomination hearing, Senator Grassley asked Mr. Barr if he would answer the letter, if confirmed, to which he attested, ‘Yes, Senator.’ On April 16, 2019, Senators Grassley, Johnson, and Graham sent a letter to Attorney General Barr reiterating the need for a written response to that letter,” reads the note.

Now-fired FBI agent Peter Strzok (who is now suing the DOJ over his ouster) was responsible for downgrading the language regarding Clinton’s conduct from the criminal charge of “gross negligence” to “extremely careless.”

“Gross negligence” is a legal term of art in criminal law often associated with recklessness. According to Black’s Law Dictionary, gross negligence is “A severe degree of negligence taken as reckless disregard,” and “Blatant indifference to one’s legal duty, other’s safety, or their rights.” “Extremely careless,” on the other hand, is not a legal term of art – and is why Clinton got off scot-free.

18 U.S. Code § 793 “Gathering, transmitting or losing defense information” specifically uses the phrase “gross negligence.” Had Obama’s FBI used the phrase, they would have essentially declared that Hillary had broken the law.

Perhaps the FBI decided not to pursue Hillary’s “highly classified” evidence in order to avoid having to stick with “gross negligence.”

Notably, FBI General Counsel James Baker thought Clinton should face criminal prosecution, but was talked out of it at the last minute.

Meanwhile, there’s no doubt that the FBI’s anti-Trump / pro-Clinton bias played a role in their decisions.

And in a passage that often gets overlooked by reporters and pundits alike, IG Horowitz concluded in his final report about the Clinton email caper that the anti-Trump biases that FBI agent Strzok and bureau lawyer Lisa Page expressed in text messages may have affected their decision-making to focus more urgently on the now disproven Trump-Russia collusion allegations rather than to finish work on the former secretary of state’s email problems, an investigation code-named Midyear.

“In assessing the decision to prioritize the Russia investigation over following up on the Midyear-related investigative lead … we were particularly concerned about text messages sent by Strzok and Page that potentially indicated or created the appearance that investigative decisions they made were impacted by bias or improper considerations,” the Justice’s watchdog wrote.

So the FBI’s chief lawyer originally thought Clinton should be indicted, and the bureau wrote a draft supporting the felony standard, but then walked back its decision. And agents focused more on unsubstantiated Trump collusion than Clinton emails in what the IG feared might be a sign of bias. –The Hill

And now Attorney General Bill Barr seems to be taking his sweet time formulating an answer as to what happened, and more importantly – what will come of this. We’re not holding our breath.

end

This should be interesting:  Grand jury subpoenas have been issued to 20 officers at the NY prison where Epstein died

(zerohedge)

Grand Jury Subpoenas Issued For Up To 20 Officers At NYC Prison Where Epstein Died

Up to twenty employees at the Manhattan Metropolitan Correctional Facility (MMC) where Jeffrey Epstein died have been subpoenaed in connection with the wealthy pedophile’s unbelievable suicide.

Federal investigators obtained the grand jury subpoenaes while trying to understand what exactly happened leading up to Epstein’s suicide in what CNN reports to be “a new and significant phase in what appears to be a criminal investigation into the workers responsible for Epstein’s detention.”

Epstein was found hanged in his cell in the early morning hours nearly two weeks ago. The multimillionaire financier was awaiting trial on charges that he’d run a sex trafficking ring involving underage girls.

The suicide of one of highest-profile federal inmates was said to have deeply angered top officials at the Justice Department, and investigators with the FBI and the Justice Department’s Inspector General’s Office have been probing the circumstances that led up to it. –CNN

On Wednesday, Attorney General William Barr said that several witnesses “were not cooperative,” and had “required having union representatives and lawyers before we could schedule interviews.” Barr has ordered the FBI and the Justice Department’s inspector general to probe Epstein’s August 10 suicide. Also under review is a prior attempt from July 23 in which Epstein reportedly told his lawyers that then-cellmate Nicholas Tartaglione “roughed him up.”

Tartaglione has denied hurting Epstein, and recently asked a judge to transfer him out of MCC and into another prison after reportedly receiving death threats from guards – including that there would be a “price to pay” if he talks about Epstein’s death.

Investigators are reportedly focusing on two guards tasked with watching Epstein, who have both been placed on leave in the wake of Epstein’s death. The official story is that they fell asleep on the job. There are also reports that the guards falsified records to show they had checked on Epstein every 30 minutes as required – which, if true could expose them to criminal charges.

In the days since Epstein’s death, reports of mistakes and mismanagement behind the walls of the hulking Manhattan facility have emerged.

Barr has cited “serious irregularities” and a “failure to adequately secure” Epstein by the jail, and has in recent days overhauled the leadership there and at the Bureau of Prisons in Washington. –CNN

Prosecutors hope to learn from the lieutenants in charge of Epstein’s cell block what exactly happened the night he died; whether guards properly conducted their rounds to check on prisoners, and how work was handed off between shifts.

“The fact that this is a grand jury investigation means that they are investigating a specific crime. It tells me that it’s something more than just ‘Let’s pick up the pieces and do a report’ like an inspector general would normally do,” said former federal prosecutor Elie Honig.

The 66-year-old Epstein, who had not been checked for hours before his death, was found unresponsive in his cell after being taken off suicide watch days earlier. He reportedly tied a bedsheet to the top of a bunk bed and swan dove with enough force to break a bone in his neck.

end
As I promised you last night, there is something sinister in this. It looks like Peter Strzok approached Patrick Byrne, a protege of Buffet to have an affair with a Russian to get political espionage on Trump. He states also Clinton but I highly doubt that part.  Regardless all of the evidence has been handed over to Barr and Durham
(zerohedge)

Ex-Overstock CEO Byrne Reveals FBI’s Peter Strzok Manipulated Him For ‘Political Espionage’

Former Overstock CEO Patrick Byrne claimed in a bombshell interview with Fox Business that he received “fishy” orders from former FBI official Peter Strzok.

Byrne, who admitted to helping the “men in black” on two previous occasions – a murder case and Wall Street investigations – said that the Obama DOJ was conducting “political espionage” on both Hillary Clinton and Donald Trump, according to Fox News.

Byrne said that all of the purported information he gleaned from his experiences ultimately landed in the hands of Connecticut U.S. Attorney John Durham, who has been conducting an investigation into the origins of the Russia probe at the behest of Attorney General William Barr. –Fox News

The 56-year-old Byrne also told Fox’s Martha MacCallum “I was given some fishy orders and I carried them out in 2015-2016, thinking I was conducting law enforcement,” adding “I didn’t know who sent the orders, but I did them. Last summer, watching television and some congressional hearings, I figured out where these orders came from. They came from a guy named Peter Strzok.

Then, Byrne told CNN that the FBI directed him to pursue a romantic relationship with accused Russian spy Maria Butina.

“Eventually, yes they did,” the former Overstock CEO told host Chris Cuomo in response to the question of whether they “told you you needed to have romantic relationship with somebody.”

“It was so strange that I was thinking, it’s almost like they’re letting this can-o-scandal develop and someday they’re going to shake it up and crack it and spray it all over the Republican Party,” said Byrne, who added that the FBI ordered him to break up with Butina – only to ask him to rekindle their romance in the summer of 2016 during the Russian election meddling probe.

“They came back to me and said, ‘Boy, what a mistake we made. Russia, you’re right … highest national priority,” said Byrne.

“They said, ‘We want to be clear – this never happens in the United States,” Byrne added. “‘We are the good guys. We don’t work like the bad guys, but we need to ask you to rekindle a romantic relationship with Maria Butina.’

Butina was sentenced to 18 months in prison for acting “under direction of” a Russian official and banker Alexander Torshin to infiltrate American political groups like the NRA and promote Russian’s interests in the USA.

Following Byrne’s interview with MacCallum, she asked former Acting Attorney General Matthew Whitaker to respond, to which he said: “He’s describing it like he was being used as a source and being inserted into a situation by the feds, and there are protocols for handling sources,” adding “All of this can be corroborated. That’s the key. This whole situation has to be corroborated and the nice thing about John Durham is that he has the full picture of everything that was feeding into this investigation.”

Byrne resigned as Overstock CEO on Thursday effective immediately, after he disclosed his entanglements with the “Deep State.”

“While I believe that I did what was necessary for the good of the country, for the good of the firm, I am in the sad position of having to sever ties with Overstock,” Byrne wrote in a lengthy 1,600-word letter.

The letter opened with two quotes, one stating the founder is “already far too controversial to serve as CEO” and the other simply noting “do not wish to disrupt possible strategic discussions.”

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

Euro-zone stocks fall after report Bundesbank sees no need for fiscal stimulus now https://reuters.com/article/us-eur

The Fed didn’t need to cut rates in July, Kansas City Fed president says

“My sense was we’ve added accommodation and it wasn’t required in my view,” George told CNBC’s Steve Liesman in an interview that aired Thursday. “With this very low unemployment rate, with wages rising, with the inflation rate staying close to the Fed’s target, I think we’re in a good place relative to the mandates that we’re asked to achieve.”… [George will host the KC Fed Symposium at Jackson Hole.]https://www.cnbc.com/2019/08/22/kansas-city-feds-esther-george-says-july-rate-cut-was-not-needed.html

Fed’s George Says U.S. Economy Does Not Need Lower Interest Rates

“As I look at where the economy is, it’s not yet time, I’m not ready, to provide more accommodation to the economy without seeing an outlook that suggests the economy is getting weaker,”…

    George, who dissented against the Fed’s July 31 decision to cut rates for the first time since 2008, was speaking ahead of the Kansas City Fed’s annual retreat in Jackson Hole, Wyoming…

    “Easing policy is not a free choice,” George said. “It, remember, pulls forward demand. It can make leverage more attractive. And I think, depending on where you think you are in the business cycle, it can create more risk.”…

https://www.bloomberg.com/news/articles/2019-08-22/fed-s-george-says-u-s-economy-doesn-t-need-lower-interest-rates

Esther George says the Fed’s ‘large balance sheet’ may have helped cause the yield curve inversion

https://www.cnbc.com/amp/2019/08/22/esther-george-says-the-feds-large-balance-sheet-may-have-helped-cause-the-yield-curve-inversion.html

Novel idea: Instead of cutting rates to steepen the yield curve, the Fed should sell its Treasuries.  Then, the financial world can better discern yield curve cause & effect financially and economically.

@realDonaldTrump: Germany sells 30 year bonds offering negative yields. Germany competes with the USA. Our Federal Reserve does not allow us to do what we must do. They put us at a disadvantage against our competition. Strong Dollar, No Inflation! They move like quicksand. Fight or go home!

All Powell has to do is assert that he is not running for political office in 2020.  So, he can do what is best for America’s future and not selfishly focus on the next several months.  Let DJT deal with a selfish tag.

A worse than expected ‘expectations’ component of the August Bloomberg Consumer Comfort Index was released at the same time as the Markit US Manufacturing PMI.

Economic Expectations of U.S. Consumers Slump to Five-Month Low

The Bloomberg Consumer Comfort Index’s monthly expectations gauge fell to 48.5 from 55 as a larger share of respondents said the economy is getting worse, according to the Aug. 6-18 survey released Thursday. The weekly reading edged up to 61.5 from 61.2 as Americans’ views of their finances and the buying climate improved…

https://www.bloomberg.com/news/articles/2019-08-22/economic-expectations-of-u-s-consumers-slump-to-five-month-low

Fed’s Harker doesn’t see need for another rate cut, says central bank should stay here ‘for a while’

https://www.cnbc.com/2019/08/22/feds-harker-doesnt-see-need-for-another-rate-cut-says-central-bank-should-stay-here-for-a-while.html

Due to George, Rosengren and Harker’s hawkish comments, the odds of a 50bp rate cut at the September 18 FOMC Meeting fell to 3.1%.  It was 40% one week ago.

The morning ESU plunge on disappointing US economic data was more profound than normal because the trading universe was long and irrationally exuberant for Powell’s expected dovish speech today.

The usual rally into the European close appeared.  It was a spirited bounce because traders were trapped long and needed ‘the marks’.  The bounce for the European close segued into a Noon Balloon.

The Noon Balloon segued into the pre-Powell speech rally.  At 13:30 ET, even with a 22-handle ESU rally from the morning low, only the DJIA was positive.  Bonds and gold were also lower due to the greatly reduced odds of a 50bp rate cut next month.

ESUs and stocks rolled over when the final hour arrived due to Dallas Fed President Kaplan.

Dallas Fed’s Kaplan says he’d like to avoid cutting rates again in September, but has ‘open mind’

https://www.cnbc.com/2019/08/22/dallas-feds-kaplan-says-hed-like-to-avoid-cutting-rates-again-in-september-but-has-open-mind.html

Kaplan also said the Fed doesn’t have a lot of policy ammunition and cutting rates is not cost free.

With fifteen minutes remaining in the session, the pre-Powell speech rally resumed. But sellers reappeared near the close.  ESUs plunged 11 handles in the final six minutes.  Wiser guys getting out?

The Fed monetized $1.601B of Treasuries on Thursday.  https://www.newyorkfed.org/markets/pomo/operations/index.html?22082019

From August 14 through yesterday, the Fed has casually monetized [via outright purchases] $9.805B of Treasuries over five of the seven sessions.  $25.3B of MBS will runoff the Fed’s balance sheet this week and next.  The Fed will buy $5.3B of MBS over the next 4 weeks to keep the MBS runoff at it $20B per month cap.  The Fed is replacing MBS with Treasuries.  The Treasury runoff cap is $15B per month. PS – QT ends in September.  https://www.newyorkfed.org/markets/pomo/operations/priorTwoWeeks

Yesterday, we noted that the preliminary BLS Benchmark Revision for NFP was a loss of 501k.  Low-paying gigs (Leisure & Hospitality -175k and Retail -146.6k) were 64% of the loss.  The downward revision is probably due to the hokey Birth/Death Model crafting jobs that small businesses did not create.

Larry Summers Says Central Bankers Confront a ‘Black Hole’ for Policy

Small changes in interest rates and even more aggressive strategies do little to solve demand shortfalls…

https://www.bloomberg.com/news/articles/2019-08-22/summers-says-central-bankers-confront-a-black-hole-for-policy

After the close, Team Trump continued its farcical tax cut/no tax cut scheme.

Larry Kudlow says there could be a tax cut [for middle class & small biz] before Election Day

https://www.cnbc.com/2019/08/22/larry-kudlow-says-there-could-be-a-tax-cut-before-election-day.html

Fed Chair Jerome Powell has chance to prove he has guts

But if he wants to go down in history as the savior of the Fed in times of trouble, he had better stand up to the president — even if it means that Trump tries to fire him…

https://nypost.com/2019/08/21/fed-chair-jerome-powell-has-chance-to-prove-he-has-guts/

Today – It’s all up to Powell.  The known universe expects Powell to issue a very dovish speech in which he confirms that the Fed has commenced a new rate-cut cycle and the Fed will drive rates lower in the coming months.  The expectations for an extremely dovish speech are so high, you have to wonder how Powell can meet those expectations without sounding like he’s panicking or groveling to DJT.

From midday on August 15 (Thursday before expiry) the S&P 500 Index has rallied from a low of 2825.51 to a high of 2939.08 at 9:43 ET yesterday.  The rally was largely expiration manipulation last week and extremely bullish expectations for Powell’s speech this week.

Ergo, the biggest risk for today is on the downside.  Traders that are exuberantly long will look to unload at some point during Powell’s speech.  If Jerome is not as dovish as expected, look out below!

The S&P 500 Index had an Outside Day on Thursday – and it formed during the first hour of trading!

CEO of Overstock Corp. Resigns & Admits to Participating in FBI Political Surveillance

♦Byrne names FBI Agent Peter Strzok as the person giving the instructions.

♦Hillary Clinton, Marco Rubio, Ted Cruz and Trump as the four candidates under FBI surveillance

♦Byrne claims he was offered a $1 billion bribe to keep his mouth shut.

♦Byrne states he went to the DOJ in April 2019 (3rd – 10th), after Bill Barr was Attorney General, because he was informed that Barr was trustworthy and going to support.  Byrne told the DOJ everything that was happening.

Byrne claims Buffett (a mentor and lose friend) gave him personal advice to distance himself from his company, Overstock Inc., because all of the DC interests would use his business to “grind him down”…

https://theconservativetreehouse.com/2019/08/22/patrick-byrne-ceo-of-overstock-corp-resigns-and-admits-to-participating-in-fbi-political-surveillance/

 

De-policing, de-prosecuting and de-incarcerating are causing de-civilization in some big US cities.

 

Seattle residents blame inefficient elected officials for homeless problem, say they’ve ‘lost faith’ in system – In Seattle, arguably the country’s most liberal city, homelessness remains one of the most divisive topics. Over the past five years, the city has seen an explosion in homelessness, crime, substance abuse and addiction. Residents say they struggle to balance compassion with growing resentment.

    In all, the city spends $1 billion a year fighting homelessness. That’s $100,000 for every homeless man, woman and child in King County…

https://www.foxnews.com/us/seattle-residents-blame-inefficient-elected-officials-for-homeless-problem-say-theyve-lost-faith-in-system

 

What was in that felon’s trunk? More evidence that the Cook County bond system is broken

The county’s electronic monitoring system has been overwhelmed by the Preckwinkle-Evans-Foxx push to reduce the jail population. There are only 100 deputies monitoring the system to watch over more than 2,000 alleged criminals, many of them violent…“The people of Chicago and Cook County have no idea what’s happening,” a judge told me. “And rapists, robbers, shooters are walking out the door. Criminals don’t call it ‘bond court’ anymore. They call it ‘I-bond’ court.”…

https://www.chicagotribune.com/columns/john-kass/ct-cook-county-bail-debate-kass-20190822-bgyzwfjfwne5fnqciomoobwf5i-story.html

SF Board of Supervisors sanitizes language of criminal justice system

Going forward, what was once called a convicted felon or an offender released from jail will be a “formerly incarcerated person,” or a “justice-involved” person or simply a “returning resident.”

    Parolees and people on criminal probation will be referred to as a “person on parole,” or “person under supervision.” A juvenile “delinquent” will become a “young person with justice system involvement,” or a “young person impacted by the juvenile justice system…

https://www.sfchronicle.com/bayarea/philmatier/article/SF-Board-of-Supervisors-sanitizes-language-of-14292255.php

 

Charles Gasparino @CGasparino: NOTICEABLY SILENT in the @Scaramucci – @realDonaldTrump drama: @IvankaTrump who fought (over the objections of Bannon and @Reince) to install Mooch as communications director because, I am told, she said  @jaredkushner needed better PR.

end

As is our custom let us end the week on a bang with this commentary courtesy of Greg Hunter of USAWatchdog

Trump Fights Fed, Buy Gold, More MSM Propaganda

By Greg Hunter On August 23, 2019

If you think the latest stumbles in the U.S. economy were caused by the so-called trade war with China – think again. The reason why the economy is sputtering is the Federal Reserve. It raised rates only 2 times during the 8 years of the Obama Administration. In the first 2 ½ years of the Trump Administration, it raised interest rates 7 times. On top of that, the Fed started what it calls “quantitative tightening” (QT) during Trump’s first few months in office. QT takes liquidity out of the economy. At its peak, the Fed was burning $50 billion a month that businesses and consumers could no longer have access to. So, when you hear the President blame the Fed for economic troubles, rest assured he is correct.

The gold bandwagon is filling up with some of the biggest names in the investment world. Ray Dalio, who manages the biggest hedge fund in the world, is telling people to “buy gold.” Now, former Franklin Templeton ($28 billion) money manager Mark Mobius is telling people to “buy gold at any level.” What do rich money managers see coming?

The mainstream media (MSM) has basically turned into a propaganda machine for the Democrats and the New World Order globalists. The most recent confirmation of this is leaked audio of the brass at the New York Times discussing dumping the fake hoax of the Russian Trump collusion narrative for a new narrative—Trump and his voters are racist. This, of course, is yet another propaganda lie the MSM is telling to stop President Trump in the 2020 election.

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

-END-

World economic news:

Well that is all for today

I will see you Monday night.

 

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One comment

  1. Barry Mullin · · Reply

    Good evening Mr. Organ:

    For months now I have been noticing that your gold values are well below those shown on BNN/Bloomberg each weekday evening. BNN and its affiliate says the Comex exchange provides their changing gold prices and they always are higher than the figures you use each evening. Today (Aug. 23) BNN shows closing numbers of in the middle to upper $1,530 range and yours are lower by between $5 and $10. I’ve called BNN and told them to look at their gold price and the one CTV shows on its running line. They never — or rarely — match. Why no consistency from the same source as the price changes during stock market hours each day? Barry Mullin

    Like

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