SEPT 25/OPTIONS EXPIRY AT THE COMEX TODAY AND THUS OUR USUAL AND CUSTOMARY RAID: GOLD DOWN $26.90 TO $1505.50////SILVER DOWN 58 CENTS TO 18.02//QUEUE JUMPING CONTINUES FOR BOTH GOLD AND SILVER AT THE COMEX//GOLD COMEX HITS AN ALL TIME RECORD AT 658,000 CONTRACTS//PAM AND RUSS MARTENS BELIEVE THAT THE REPO MONEY (LOANS) ARE GIVEN TO DEUTSCHE BANK AS THESE GUYS ARE IN SERIOUS TROUBLE//IN NY THIS MORNING ANOTHER 92 BILLION DOLLARS OF REPO MONEY SOUGHT F WHICH ONLY 75 IS ALLOTTED TO//THE FARCE BEHIND THE LATEST IMPEACHMENT SAGA AGAINST TRUMP//THE KING REPORT//

GOLD: $1505.50 DOWN $26.90 (COMEX TO COMEX CLOSING)

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver:$18.02 DOWN 56 CENTS  (COMEX TO COMEX CLOSING)

 

 

Closing access prices:

Gold : $1504.50

 

silver:  $17.90

 

today is options expiry for the comex contracts.  With the extreme rise in the price of silver these past several days, the bankers with help from the official sector had to get silver below 18.00 dollars to make all of those underwritten contracts worthless.  Gold held above 1500.00 dollars.  We have until next Monday to deal with these crooks as the next expiry is the much bigger OTC /LBMA gold/silver options.

Definition of Rico

RICO is typically used to indict mobsters – which makes its use against employees of the largest bank in America a very disquieting event. But even more disquieting is that two trial lawyers compared JPMorgan Chase to the Gambino crime family five long years ago and recommended in their 2016 book that the bank’s officers be prosecuted under the RICO statute.” … Pam Martens and Russ Martens

Ted Butler….

“If JPMorgan were ever found to be guilty of what I know it to be guilty of, the repercussions and reparations (including punitive damages) could completely overwhelm the bank’s ability to survive. For instance, every miner who produced silver for the past decade would have a claim against JPMorgan, as would just about every silver investor of every stripe. Therefore, some alternative resolution must be devised that doesn’t fully acknowledge all that JPMorgan had done wrong for more than a decade.” … Ted Butler

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 0/5

EXCHANGE: COMEX
CONTRACT: SEPTEMBER 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,532.100000000 USD
INTENT DATE: 09/24/2019 DELIVERY DATE: 09/26/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
657 C MORGAN STANLEY 3
737 C ADVANTAGE 2 2
905 C ADM 3
____________________________________________________________________________________________

TOTAL: 5 5
MONTH TO DATE: 1,751

NUMBER OF NOTICES FILED TODAY FOR  SEPT CONTRACT: 5 NOTICE(S) FOR 500 OZ (0.0155 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  1751 NOTICES FOR 175,100 OZ  (5.4463 TONNES)

 

 

 

SILVER

 

FOR SEPT

 

 

0 NOTICE(S) FILED TODAY FOR nil  OZ/

 

total number of notices filed so far this month: 8662 for   43,310,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 8320 DOWN 171 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 8352 DOWN 155

 

 

 

Let us have a look at the data for today

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

IN SILVER THE COMEX OI FELL BY A SMALL  SIZED 398 CONTRACTS FROM 215,615 DOWN TO 215,217 WITH THE 5 CENT LOSS IN SILVER PRICING AT THE COMEX.

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

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

FOR SEPT 0,; DEC  1169 AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1169 CONTRACTS. WITH THE TRANSFER OF 1169 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 1169 EFP CONTRACTS TRANSLATES INTO 5.845 MILLION OZ  ACCOMPANYING:

1.THE 5 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

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.410   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE

YESTERDAY, THERE WAS A GOOD ATTEMPT AT COVERING OUR BANKER SHORTS  AT THE SILVER COMEX. OUR OFFICIAL SECTOR AGAIN USED COPIOUS NON BACKED PAPER IN AN ATTEMPT TO CONTAIN SILVER’S PRICE RISE AND WERE SUCCESSFUL IN THAT DEPARTMENT BUT  WERE  UNSUCCESSFUL IN FLEECING LONGS, AS WE  HAD A STRONG GAIN IN TOTAL OI ON BOTH EXCHANGES DESPITE THE TINY LOSS AT THE COMEX.

 

 

THE LIQUIDATION OF COMEX OI OF SPREADERS HAVE STOPPED AND WE WILL NOW COMMENCE WITH THE ACCUMULATION PHASE OF SPREADERS GOLD OPEN INTEREST

 

 

 

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

29,356 CONTRACTS (FOR 17 TRADING DAYS TOTAL 29,356 CONTRACTS) OR 146.780 MILLION OZ: (AVERAGE PER DAY: 1726 CONTRACTS OR 8.634 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF AUGUST:  146.78 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 20.96% 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:          1696.38   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

AUG. 2019  TOTAL EFP ISSUANCE;                                                 216.47 MILLION OZ

RESULT: WE HAD A SMALL SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 398, WITH THE 5 CENT LOSS IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  STRONG SIZED EFP ISSUANCE OF 1169 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 GOOD  SIZED: 771 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 1169 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 398  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 5 CENT LOSS IN PRICE OF SILVER AND A CLOSING PRICE OF $18.58 WITH RESPECT TO YESTERDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY!! 

 

 

In ounces AT THE COMEX, the OI is still represented by JUST OVER 1 BILLION oz i.e. 1.077 BILLION OZ TO BE EXACT or 154% 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 244,196 CONTRACTS ON AUG 22.2018 AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $14.78.  

 

.

 

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 10.025 MILLION OZ/ SEPT 43.410 MILLION OZ//   
  2.  THE  RECORD WAS SET IN AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

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

.

THE SPREADING LIQUIDATION OPERATION IS NOW OVER FOR SILVER..AND WE WILL NOW MORPH INTO AN ACCUMULATION PHASE OF SPREADING CONTRACTS FOR GOLD.  THEY WILL ACCUMULATE CONSIDERABLE AMOUNT OF THE CONTRACTS AND THEN LIQUIDATE ONE WEEK PRIOR TO FIRST DAY NOTICE

FOR THOSE OF YOU WHO ARE NEWCOMERS HERE IS A BRIEF SYNOPSIS OF HOW THE CROOKS FLEECE UNSUSPECTING LONGS IN THE SPREADING ENDEAVOUR;

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

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

“AS YOU WILL SEE, THE CROOKS WILL NOW SWITCH TO GOLD 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 SEPT HEADING TOWARDS THE  ACTIVE DELIVERY MONTH OF OCTOBER FOR GOLD.

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES, HERE IS THE BANKERS MODUS OPERANDI:

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST  STARTS TO RISE IN THIS NON ACTIVE MONTH OF SEPT BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN GOLD WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING ACTIVE DELIVERY MONTH (OCT), 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.” 

 

 

 

 

IN GOLD, THE COMEX OPEN INTEREST ROSE BY AN ATMOSPHERIC AND CRIMINALLY SIZED 11,552 CONTRACTS, TO 658,944 ACCOMPANYING THE  $8.65 PRICING GAIN WITH RESPECT TO COMEX GOLD PRICING// YESTERDAY// / AND NOW WE OBTAINED A NEW COMEX RECORD BREAKING THE LAST RECORD OF 652,919 CONTRACTS ESTABLISHED ON JULY 19/2016. THIS IS QUITE A FEAT BECAUSE 3 YEARS AGO EXCHANGE FOR PHYSICAL (EFP) USAGE WAS JUST IN ITS INFANCY.  IF THEY WOULD HAVE BEEN OUTLAWED AS THEY SHOULD HAVE BEEN, THEN THE ENTIRE OPEN INTEREST AT THE COMEX WOULD BE IN THE STRATOSPHERE.

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 11077 CONTRACTS:

OCT 2019: 980 CONTRACTS, DEC>  10,979 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 658,944,, AND THIS NOW STANDS AS THE NEW COMEX RECORD…..  ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE AN ATMOSPHERIC AND CRIMINALLY SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 22,629 CONTRACTS: 11,552 CONTRACTS INCREASED AT THE COMEX  AND 11,077 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 22,629 CONTRACTS OR 2,262,900 OZ OR 70.38 TONNES.  YESTERDAY WE HAD A GOOD GAIN OF $8.65 IN GOLD TRADING….

AND WITH THAT GOOD GAIN IN  PRICE, WE  HAD A HUMONGOUS GAIN IN GOLD TONNAGE OF 70.38  TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON AS THE COMEX GOLD VOLUME AND OPEN INTEREST ARE HUGE. THEY WERE UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE LONGS AND AS YOU CAN SEE, THE TOTAL OPEN INTEREST IN BOTH EXCHANGES SKYROCKETED. THE COMEX IS ONE ABSOLUTE FRAUD!!

 

 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF SEPT : 127,391 CONTRACTS OR 12,739,100 oz OR 396.24 TONNES (17 TRADING DAY AND THUS AVERAGING: 7493 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 17 TRADING DAYS IN  TONNES: 396.24 TONNES

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

THUS EFP TRANSFERS REPRESENTS 396.24/3550 x 100% TONNES =11.16% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     4548.33  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

AUG. 2019 TOTAL ISSUANCE:                    639.62 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 11,552 WITH THE GOOD  PRICING GAIN THAT GOLD UNDERTOOK YESTERDAY($8.65)) //.WE ALSO HAD  A HUGE SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 11,077 CONTRACTS AS THESE HAVE ALREADY BEEN NEGOTIATED AND CONFIRMED.   THERE OBVIOUSLY DOES NOT SEEM TO BE MUCH PHYSICAL GOLD AT THE COMEX.  I GUESS IT EXPLAINS THE HUGE ISSUANCE OF EFP’S…THERE IS HARDLY ANY GOLD PRESENT AT THE GOLD COMEX FOR DELIVERY PURPOSES. IF YOU TAKE INTO ACCOUNT THE 11,077 EFP CONTRACTS ISSUED, WE  HAD AN ATMOSPHERIC  AND CRIMINALLY SIZED GAIN OF 22,629 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

11,077 CONTRACTS MOVE TO LONDON AND 11,552 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 70.38 TONNES). ..AND THIS HUGE INCREASE OF  DEMAND OCCURRED WITH THE GAIN IN PRICE OF $8.65 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX.

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

 

 

 

 

 

 

 

 

we had:  5 notice(s) filed upon for 500 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

WITH GOLD DOWN $26.90 TODAY//(COMEX-TO COMEX)

THESE GUYS ARE NOW OUT OF CONTROL

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF: 16.42 TONNES

INVENTORY RESTS AT 924.94 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 DOWN 56 CENTS TODAY: 

 

NO CHANGES IN SILVER INVENTORY AT THE SLV//

 

/INVENTORY RESTS AT 377.811 MILLION OZ.

 

 

 

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

 

 

 

 

end

 

OUTLINE OF TOPICS TONIGHT

 

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

1. Today, we had the open interest in SILVER FELL BY A TINY SIZED 398 CONTRACTS from 215,615 DOWN TO 225,452 AND FURTHER FROM FROM A  NEW COMEX RECORD.  THE LAST RECORDS WERE SET  IN AUG.2018 AT 244,196 WITH A SILVER PRICE OF $14.78/(AUGUST 22/2018)..THE PREVIOUS RECORD TO THAT WAS SET ON APRIL 9/2018 AT 243,411 OPEN INTEREST CONTRACTS WITH THE SILVER PRICE AT THAT DAY: $16.53). AND PREVIOUS TO THAT, THE RECORD  WAS ESTABLISHED AT: 234,787 CONTRACTS, SET ON APRIL 21.2017 OVER  2 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.

 

 

 

 

EFP ISSUANCE: 

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

 FOR SEPT. 0; FOR DEC  1169  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1169 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE OI LOSS AT THE COMEX OF 398  CONTRACTS TO THE 1169 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE STILL OBTAIN AN ATMOSPHERIC AND CRIMINALLY SIZED GAIN OF 771 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 3.855 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 10.025 MILLION OZ// AND FINALLY SEPT: 43.401 MILLION OZ//

 

 

RESULT: A SMALL SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 5 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 1169 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

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

 

 

(report Harvey)

.

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 29.91 POINTS OR 1.00%  //Hang Sang CLOSED DOWN 335.68 POINTS OR 1.28%   /The Nikkei closed DOWN 78.69 POINTS OR 0.36%//Australia’s all ordinaires CLOSED DOWN .61%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1245 /Oil DOWN TO 56.47 dollars per barrel for WTI and 62.02 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.1245 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1238 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST  7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW 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)China/USA

Interesting: with all of the turmoil in Hong Kong plus trade wars etc, Chinese home buying plunges to an 8 yr low

(zerohedge)

ii)Ahead of the October talks, China is purchasing pork which it needs badly anyway

(zerohedge)

4/EUROPEAN AFFAIRS

i)UK

With the most likely calling for an election, Corbyn is the most unpopular opposition leader siunce 1977

(zerohedge)

ii)Europe

An excellent commentary from Jeffrey Snider of Alhambra as the goes through the numbers and states that Europe’s economy is in one big mess
(Jeffrey Snider/Alhambra)

iii)DANSKE/ESTONIA//.NETHERLANDS

The body of former CEO of Danske Estonia, the centre of money laundering throughout Europe has been found,,apparent suicide

(zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)Overnight rockets hit the uSA embassy compound in Baghdad

(zerohedge)

ii)Iran/USA

Iran offers an olive branch but it will not suffice.  In order for the uSA to return to the bargaining table Iran must give up funding Hezbollah, Hamas and get out of Syria

(zerohedge)

6.Global Issues

i)Michael Snyder gives his latest numbers that tell us that the global slowdown is accelerating

(courtesy Michael Snyder)

ii)Stephen Guinness lays out 4 areas of events which will shape the economic climate

(Stephen Guinness)

7. OIL ISSUES

There is a huge glut of natural gas as the price drops below 2.00.  This is due to the huge production increase with our shale boys.  This will crush them as their costs exceed what they are receiving

(zerohedge)

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

Pam and Russ Martens ask the same questions that we do.  They are of the opinion (as do I) that the big bank in trouble that needs a huge 30 billion dollars in 14 day repo loans is none other than Deutsche bank. They explain why

(courtesy pam and Russ martens/Wall Street on Parade)

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

a)A slight rise in the 30 yr rate was all that was needed to stop the refi business as the boom in housing crashes

(zerohedge)

b)Although the refis are finished it did not stop new home buyers from buying homes with lower mortgage rates

(zerohedge)

iii) Important USA Economic Stories

a)Your big story of the day. Each day we see record amounts of money needed in repo terms in order to unclog the money markets.  Also remember we are coming close to the quarter end where the crooks put lipstick on their crooked balance sheets to make things looks better than it really is.  Today a massive 92 billion dollars was needed and only 75 billion offered so again some could not get badly needed cash.

(zerohedge)

b)Philip Morris and Altria  end the merger talks. The CEO of Juul quits

(zerohedge)

 

iv) Swamp commentaries)

a)An absolute joke: the IG states that the whistleblower has bias in favour of a rival candidate, The whistleblower retains the same lawyer for the Clintons and Schumer

(zerohedge)

b)Rudy G., lays out a pattern of corruption of the Bidens.  He claims that China bought Biden

a must read and view

(zerohedge)

c)Trump releases the Ukraine transcript and it shows Trump asking the Ukraines to look into the Biden affair

(zerohedge)

d)The Wall Street Journal shreds the Democrat take out of a President after the release of the memorandum

(Kim Strassel/WSJ)

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

 

LET US BEGIN:

 

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY AN ATMOSPHERIC AND CRIMINALLY SIZED 11,552 CONTRACTS TO A NEW RECORD LEVEL OF 658,944 ACCOMPANYING THE GOOD GAIN OF $8.65 IN GOLD PRICING WITH RESPECT TO YESTERDAY’S // COMEX TRADING)

WE ARE NOW IN THE NON ACTIVE DELIVERY MONTH OF SEPT..  THE CME REPORTS THAT THE BANKERS ISSUED STRONG SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 11077 EFP CONTRACTS WERE ISSUED:

 FOR OCT; 980 CONTRACTS: DEC: 10,979   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  11,077 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: 22,629 TOTAL CONTRACTS IN THAT 11077 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A STRONG SIZED 11,552 COMEX CONTRACTS. 

THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD.  THE BANKERS FAILED IN THEIR ATTEMPT AT CONTAINING GOLD’S PRICE AS IT ROSE BY $16.25. , THE CROOKS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE LONGS FROM THEIR OI POSITIONS AS BOTH OPEN INTERESTS ON OUR TWO EXCHANGES ROSE APPRECIABLY. 

 

NET GAIN ON THE TWO EXCHANGES ::  22,629 CONTRACTS OR 2,262,900 OZ OR 70.38 TONNES

We are now in the NON  active contract month of SEPT and here the open interest stands at 21 CONTRACTS and we GAINED 2 contracts.  We had 3 notices filed on yesterday so  we gained 5 contracts or an additional 500 oz of gold  will stand for delivery at the comex (and those standing for metal.. nobody morphed into London forwards),… the siege continues as the story for physical gold is the name of the game despite the criminal antics of the bankers/official sector.

The next active delivery month is October and here the OI ROSE by 881 contracts UP to 31,081. The month of November saw a gain of 206 contracts and thus the OI is ADVANCED to 432.  The very big December contract month saw its oi RISE by 8969 contracts up to 496,721. First day notice is this coming Monday, Sept 30 and thus we have 3 more reading days with the front October contract month exceedingly high in open interest. October, even though it is an active delivery month, it is generally the poorest in deliveries as most longs would prefer to go straight to December, the strongest delivery month for the entire year.

 

 

 

TODAY’S NOTICES FILED:

WE HAD 5 NOTICES FILED TODAY AT THE COMEX FOR  500 OZ. (0.0155 TONNES)

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results.

Total COMEX silver OI FELL BY A SMALL SIZED 398CONTRACTS FROM 215,615 DOWN TO 215,217 (AND FURTHER FROM THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S SMALL  OI COMEX LOSS OCCURRED WITH A 5 CENT LOSS IN PRICING.//YESTERDAY.

WE ARE NOW INTO THE NON  ACTIVE DELIVERY MONTH OF SEPT.  HERE WE HAVE 20 OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 16 CONTRACTS.  WE HAD 19 NOTICES FILED YESTERDAY SO WE  GAINED  3 CONTRACTS OR AN ADDITIONAL 15,000 OZ OF SILVER WILL STAND AT THE COMEX…. AS THESE GUYS REFUSED TO MORPH INTO A LONDON BASED FORWARD AS WELL AS NEGATING A FIAT BONUS. LET US WAIT AND SEE IF THEY ARE SUCCESSFUL IN OBTAINING PHYSICAL METAL ON EITHER SIDE OF THE POND..  THE NEXT NON ACTIVE CONTRACT MONTH IS OCTOBER AND IT FELL BY 27 CONTRACTS TO STAND AT 1431. NOVEMBER SAW A SMALL GAIN OF 15 CONTRACTS TO STAND AT 483. THE NEXT ACTIVE DELIVERY MONTH AFTER SEPT IS DECEMBER AND HERE THE OI FALLS BY 202 CONTRACTS UP TO 166,019.

TODAY’S NUMBER OF NOTICES FILED:

 

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

Trading Volumes on the COMEX TODAY: 466,274  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  444,354  contracts

 

 

 

 

 

INITIAL standings for  SEPT/GOLD

SEPT 25/2019

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 201.07 oz

 

Delaware

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
5 notice(s)
 500 OZ
(0.0155 TONNES)
No of oz to be served (notices)
16 contracts
(1600 oz)
.0497 TONNES
Total monthly oz gold served (contracts) so far this month
1751 notices
175100 OZ
5.4463 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 0 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into Everybody else;: 0  oz

 

 

 

total gold deposits: nil  oz

 

very little gold arrives from outside/ zero amount  arrived   today

we had 1 gold withdrawal from the customer account:

i) Out of Scotia:  803.75 oz  (25 kilobars)

a phony entry

 

 

total gold withdrawals; 803.75   oz

 

 

FOR THE SEPT 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 5 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

To calculate the INITIAL total number of gold ounces standing for the SEPT /2019. contract month, we take the total number of notices filed so far for the month (1751) x 100 oz , to which we add the difference between the open interest for the front month of  SEPT. (21 contract) minus the number of notices served upon today (5 x 100 oz per contract) equals 176,700 OZ OR 5.4961 TONNES) the number of ounces standing in this NON active month of SEPT

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

No of notices served (1746 x 100 oz)  + (21)OI for the front month minus the number of notices served upon today (5 x 100 oz )which equals 176,700 oz standing OR 5.4961 TONNES in this  active delivery month of SEPT.

 

We GAINED 5 contracts or an additional 500 oz will seek metal on this side of the pond instead of morphing over to London.  The gold comex is still under siege for any remaining physical metal.

SURPRISINGLY WE HAVE BEEN WITNESSING NO GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!!  WE HAVE ONLY 22.854 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 27.153  TONNES OF GOLD STANDING //AUGUST AND 5.4961 TONNES IN SEPT.//

 

ACCORDING TO COMEX RULES:

FOR A SETTLEMENT YOU NEED A TRANSFER FROM THE DEALER (REGISTERED) ACCOUNT OVER TO AN ELIGIBLE ACCOUNT. FOR THE  ENTIRE MONTH OF AUGUST WE HAD 1 TRANSACTION ON THIS FRONT IN SEPT SO FAR, AND THUS I WILL ADD THE 27.153 TONNES TO THE 5.4961 TONNES (EQUALS 32.6491 TONNES) AGAINST THE 22.854 TONNES OF REGISTERED GOLD.

total registered or dealer gold:  734,786.521 oz or  22.854 tonnes 
total registered and eligible (customer) gold;   8,097,056/846 oz 251.85 tonnes

IN THE LAST 35 MONTHS 107 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 SEPT.

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
SEPT 25 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 89,552.15 oz
Brinks
Delaware
Loomis

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
1,018.000 oz
Delaware
No of oz served today (contracts)
0
CONTRACT(S)
(NIL OZ)
No of oz to be served (notices)
20 contracts
 100,000 oz)
Total monthly oz silver served (contracts)  8662 contracts

43,310,000 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: 1,018.000 oz ???

 

 

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

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

 

 

 

 

total customer deposits today:  1018.000  oz

 

we had 3 withdrawals out of the customer account:

 

 

i) Out of Brinks: 7995.37

ii) Out of Delaware: 1017.20 oz

iii) Out of Loomis: 80,539.580 oz

 

 

 

 

 

 

total 89,552.15  oz

 

we had 0 adjustment :

 

total dealer silver:  83.480 million

total dealer + customer silver:  316.405 million oz

lately we are witnessing less silver enter the comex silver vaults.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The total number of notices filed today for the SEPTEMBER 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 SEPTEMBER, we take the total number of notices filed for the month so far at 8662 x 5,000 oz = 43,310,000 oz to which we add the difference between the open interest for the front month of SEPT. (20) 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 SEPT/2019 contract month: 8662 (notices served so far) x 5000 oz + OI for front month of SEPT (20)- number of notices served upon today (0)x 5000 oz equals 43,410,000 oz of silver standing for the SEPT contract month. 

We gained 3 contracts or 15,000 additional oz of silver will stand at the comex as these guys refused to morph into London based forwards as well as negate a fiat bonus.

LADIES AND GENTLEMEN:  THE COMEX IS UNDER ASSAULT FOR BOTH PHYSICAL GOLD AND SILVER WITH SILVER IN THE LEAD BY FAR. DESPITE  MASSIVE RAIDS, LONGS CONTINUE WITH THEIR HUNT AT THE COMEX FOR PHYSICAL METAL.. IT WILL NOT BE LONG BEFORE WE WITNESS A COMMERCIAL FAILURE..STAY TUNED..WE WITNESSED CONSIDERABLE BANKER SHORT COVERING IN SILVER TODAY AND AN ATTEMPTED BANKER SHORT COVERING IN GOLD WITH ZERO SUCCESS.

 

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

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

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  123,553 CONTRACTS

 

 

CONFIRMED VOLUME FOR YESTERDAY: 136,758 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 136,758 CONTRACTS EQUATES to 683 million  OZ 97.6% OF ANNUAL GLOBAL PRODUCTION OF SILVER..makes sense!!

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

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

 

end

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

 

NPV for Sprott

 

1. Sprott silver fund (PSLV): NAV FALLS TO -1.76% ((SEPT 25/2019)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -0.93% to NAV (SEPT 25/2019 )
Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ -1.76%

(courtesy Sprott/GATA)

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

NAV 15.14 TRADING 14.68/DISCOUNT 3.04

 

 

 

NAV 15.03 TRADING 14.53/DISCOUNT 3.32

 

 

 

 

END

And now the Gold inventory at the GLD/

SEPT 25/WITH GOLD DOWN $26.90 A HUGE  PAPER DEPOSIT OF:  16.42 TONNES//INVENTORY RESTS AT 924/94 TONNES

SEPT 24/WITH GOLD UP $8.65 TODAY: A MONSTROUS CHANGE IN GOLD INVENTORY AT THE GLD: AN OUT OF THIS WORLD DEPOSIT OF 14.37 TONNES OF GOLD INTO THE GLD/INVENTORY RESTS AT 894.15 TONNES

SEPT 23/WITH GOLD UP $16.25 ON THE DAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER ADDITION OF 10.65 TONNES//INVENTORY RESTS AT 894.15 TONNES

SEPT 20/WITH GOLD UP $8.60 ON THE DAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 883.06 TONNES

SEPT 19/WITH GOLD DOWN $8.90 TODAY: A BIG CHANGES IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 3.23 TONNES OF GOLD INTO THE GLD///INVENTORY RESTS AT 883.60 TONNES

SEPT 18/WITH GOLD UP $2.40 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 5.86 TONNES/INVENTORY RESTS AT 880.37 TONNES

SEPT 17/WITH GOLD UP $1.50: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 874.51 TONNES

SEPT 16/WITH GOLD UP $11.75 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 5.86 TONNES FROM THE GLD///INVENTORY RESTS AT 874.51 TONNES

SEPT 13/WITH GOLD DOWN $7.75 TODAY: A BIG PAPER WITHDRAWAL OF 2.05 TONNES FROM THE GLD/INVENTORY RESTS AT 880.37 TONNES

SEPT 12//WITH GOLD UP $4.70 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 882.42 TONNES

SEPT 11/WITH GOLD UP $5.30 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 882.42 TONNES

SEPT 10/WITH GOLD DOWN $11.75 TODAY: A HUGE 7.33 PAPER TONNES OF GOLD WAS WITHDRAWN FROM THE GLD/INVENTORY RESTS AT 882.42 TONNES

SEPT 9/WITH GOLD DOWN $4.75 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 889.75 TONNES

SEPT 6//WITH GOLD DOWN $9.80: A BIG CHANGE IN GOLD INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 6.15 TONNES//INVENTORY RESTS AT 889.75 TONNES

SEPT 5/WITH GOLD DOWN $33.80 TODAY: A BIG ADDITION (DEPOSIT) OF 5.86 OF PAPER GOLD TONNES PROBABLY ADDED BEFORE THE RAID/EXPECT A HUGE PAPER WITHDRAWAL TOMORROW:  INVENTORY RESTS AT 895.90 TONNES

SEPT 4/WITH GOLD UP $5.00 TODAY: A BIG CHANGE: A HUGE PAPER DEPOSIT OF:  11.73 TONNES/INVENTORY RESTS AT ….890.04 TONNES

SEPT 3/WITH GOLD UP $25.60 TODAY: STRANGE: A WITHDRAWAL OF 2.05 PAPER TONNES FROM THE GLD// /INVENTORY RESTS AT 878.31 TONNES

AUGUST 30 WITH GOLD DOWN $7.00: A BIG CHANGES IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.05 TONNES/INVENTORY RESTS AT 880.36 TONNES

AUGUST 29/WITH GOLD DOWN $11.65: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 9.09 PAPER TONNES OF GOLD INTO THE GLD INVENTORY/INVENTORY RESTS AT 882.41 TONNES

AUGUST 28/WITH GOLD DOWN $2.15 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 873.32 TONNES

AUGUST 27//WITH GOLD UP $14.50 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 13.49 TONNES INTO THE GLD///INVENTORY RESTS AT 873.32 TONNES

AUGUST 26/WITH GOLD UP 0.25 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 4.99 TONNES/INVENTORY RESTS AT 859.83 TONNES

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

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

SEPT 25/2019/ Inventory rests tonight at 924.94 tonnes

 

 

*IN LAST 668 TRADING DAYS: 24.22 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 568- TRADING DAYS: A NET 142.43 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

 

 

end

 

Now the SLV Inventory/

SEPT 25.//WITH SILVER DOWN 58 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 377.811 MILLION OZ//

SEPT 24/WITH SILVER DOWN 5 CENTS TODAY: A BIG CHANGES IN SILVER INVENTORY AT THE SLV: A DEPOSIT OF 2.338 MILLION OZ INTO THE SLV///INVENTORY RESTS AT 377.811 MILLION OZ//

SEPT 23.2019/WITH SILVER UP 80 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 375.473 MILLION OZ.

SEPT 20/ WITH SILVER UP 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 375.473 MILLION OZ.

SEPT 19/WITH SILVER DOWN 4 CENTS TODAY; A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 1.029 MILLION OZ FROM THE SLV///INVENTORY RESTS AT 375.473 MILLION OZ/

SEPT 18/WITH SILVER DOWN 24 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 376.502 MILLION OZ//

SEPT 17/WITH SILVER UP 14 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 376.502 MILLION OZ//

SEPT 16/WITH SILVER UP 41 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV; A PAPER WITHDRAWAL OF 2.899 MILLION OZ OF SILVER LEAVES THE SLV///INVENTORY RESTS AT 376.502 MILLION OZ/

SEPT 13/ NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 379.401 MILLION OZ//

SEPT 12/ NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 379.401 MILLION OZ//

SEPT 11/WITH SILVER DOWN ONE CENT TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 379.401 MILLION OZ//

SEPT 10/WITH SILVER UP 2 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV” A WITHDRAWAL OF 1.778 MILLION PAPER OZ OF SILVER///INVENTORY RESTS AT 379.401 MILLION OZ//

SEPT 9/WITH SILVER DOWN 6 CENTS TODAY: A MAMMOTH CHANGE IN SILVER INVENTORY: A WITHDRAWAL OF 5.425 MILLION PAPER OZ/INVENTORY RESTS AT 381.179 MILLION OZ../

SEPT 6/WITH SILVER DOWN ANOTHER 60 CENTS TODAY: A RATHER TIMID CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 842,000 PAPER OZ FROM THE SLV///INVENTORY RESTS AT 386.604 MILLION OZ//

SEPT 5/WITH SILVER WHACKED 68 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 387.446 MILLION OZ//

SEPT 4/WITH SILVER UP 28 CENTS TODAY:STRANGE!! A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 708,000 OZ FROM SLV’S INVENTORY:/INVENTORY RESTS AT 387.446 MILLION OZ//

SEPT 3/WITH SILVER UP 83 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT  388.154 MILLION OZ/

AUGUST 30/WITH SILVER DOWN 2 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 388.154 TONNES

AUGUST 29/WITH SILVER DOWN 13 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 2.714 MILLION OZ INTO THE SLV INVENTORY//INVENTORY RESTS AT 388.154 MILLION OZ/

AUGUST 28/WITH SILVER UP 19 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 385.440 MILLION OZ/

AUGUST 27/WITH SILVER UP 52 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 385.440 MILLION OZ//

AUGUST 26/WITH SILVER UP 23 CENTS TODAY: A BIG  CHANGE IN SILVER INVENTORY AT THE SLV; A DEPOSIT OF 1.59 MILLION OZ INTO SLV INVENTORY///INVENTORY RESTS AT 385.440 MILLION OZ//

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//

SEPT 25/2019:

 

 

Inventory 377.811 MILLION OZ

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 2.16/ and libor 6 month duration 2.06

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

G0LD LENDING RATE: – .10

 

XXXXXXXX

12 Month MM GOFO
+ 2.04%

LIBOR FOR 12 MONTH DURATION: 2.03

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -.01

end

 

 

end

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

Pam and Russ Martens ask the same questions that we do.  They are of the opinion (as do I) that the big bank in trouble that needs a huge 30 billion dollars in 14 day repo loans is none other than Deutsche bank. They explain why

(courtesy pam and Russ martens/Wall Street on Parade)

Pam and Russ Martens: What has frightened Wall Street banks from lending in the repo market?

 Section: 

Is it the collapse of Deutsche Bank?

* * *

By Pam and Russ Martens
Wall Street on Parade
Tuesday, September 24, 2019

Last Friday the Federal Reserve Bank of New York made it clear that its interventions in the overnight repo lending market were going to be a longer-term action. Call it what you will, the Fed has effectively returned to quantitative easing, where it buys up Treasuries, federal agency debt, and agency mortgage-backed securities from financial institutions in exchange for loans.

… 

According to the New York Fed, the program has now been extended to at least October 10 and likely thereafter in one form or another. The Fed will be pumping in $75 billion daily in overnight repo loans while infusing $30 billion in 14-day term loans three times this week for a total of $90 billion in term loans.

That there is one or more financial firms needing $30 billion on a two-week basis and can’t get it from anyone but the Fed isn’t confidence inspiring. …

… For the remainder of the commentary:

https://wallstreetonparade.com/2019/09/what-has-frightened-wall-street-b…

* * *

Join GATA here:

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

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

* * *

Help keep GATA going:

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

http://www.gata.org

To contribute to GATA, please visit:

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

What Has Frightened Wall Street Banks from Lending in the Repo Market?

By Pam Martens and Russ Martens: September 24, 2019 ~

Last Friday the Federal Reserve Bank of New York made it clear that its interventions in the overnight repo lending market were going to be a longer-term action. Call it what you will, the Fed has effectively returned to quantitative easing (QE) where it buys up Treasuries, Federal agency debt and agency mortgage-backed securities (MBS) from financial institutions in exchange for loans.

According to the New York Fed, the program has now been extended to at least October 10 and likely thereafter in one form or another. The Fed will be pumping in $75 billion daily in overnight repo loans while infusing $30 billion in 14-day term loans three times this week for a total of $90 billion in term loans.

The fact that there is one or more financial firms needing $30 billion on a two-week basis and can’t get it from anyone but the Fed isn’t confidence inspiring.

The necessity of Fed interventions is being blamed on temporary forces like a loss of liquidity from corporations paying their taxes for the quarter and large Treasury auctions where primary dealers are forced to buy under contracts with the U.S. Treasury. But as we previously wrote, these explanations do not jive with the gargantuan deposit bases of four of the biggest banks in the world that call the United States home. As we reported last week:

“As of June 30 of this year, the four largest banks on Wall Street (which are allowed to own Federally insured commercial banks as well as stock, bond and derivative gambling casinos known as investment banks) held more than $5.45 trillion in deposits. The breakdown is as follows: JPMorgan Chase holds $1.6 trillion; Bank of America has $1.44 trillion; Wells Fargo has $1.35 trillion; and Citibank is home to just over $1 trillion.

“A number of excuses have been offered by the business press to explain why the New York Fed had to ride to the rescue yesterday but the very simple question is this: how can four banks with $5.45 trillion in deposits not be able to cough up $53 billion in overnight loans.”

The reference to $53 billion is the amount that was borrowed from the Fed during the first day of the intervention, Tuesday, September 17, from the $75 billion offered out by the Fed. Now that the Fed is offering $30 billion in additional two-week loans, the question is this: is one bank tapping the spigot more than others? Is a financial institution in distress? If so, shouldn’t the public know why?

As the Government Accountability Office (GAO) revealed belatedly in 2011 in an audit of the Fed’s loans to Wall Street during the financial crisis, the Fed’s Primary Dealer Credit Facility (PDCF) had secretly made revolving loans totaling $8.95 trillion but 63 percent of that amount went to just three Wall Street firms: Citigroup received $2 trillion; Morgan Stanley got $1.9 trillion; and Merrill Lynch was the privileged recipient of $1.775 trillion. The rationale from the Fed that it made these secret loans to help banks return to lending to businesses to help the economy is bogus. Morgan Stanley and Merrill Lynch were predominantly retail brokerage firms with millions of trading clients. These Fed loans thus looked suspiciously like a bailout of margin loans and trading accounts.

One big bank with a large footprint on Wall Street that has seen its share price evaporate over the past two years is the big German lender, Deutsche Bank. Prior to the financial crisis, this was a $120 stock. Deutsche Bank closed yesterday on the New York Stock Exchange at $7.79, down 2.50 percent on the day. That decline far exceeded the price decline for any other Wall Street bank yesterday.

Deutsche Bank tried to merge with Commerzbank earlier this year but that deal fell through in April. Its new plan is to fire 18,000 workers and create a good bank/bad bank, isolating off unwanted assets that it plans to sell.

Deutsche Bank has reported losses in three of the last four years; as of the close of trading yesterday, it had $16 billion in common equity value versus $49 trillion notional (face amount) in derivatives; and it’s had four different CEOs in four years. And that’s not the worst of it.

The worst of it is that regulators on neither side of the pond have seen fit to rein in the dangerous interconnections that Deutsche Bank has as a major derivatives counterparty with mega banks on Wall Street as well as other European banks. (See After a $354 Billion U.S. Bailout, Germany’s Deutsche Bank Still Has $49 Trillion in Derivatives.)

According to a 2016 report from the International Monetary Fund (IMF), Deutsche Bank is heavily interconnected as a financial counterparty to JPMorgan Chase, Citigroup, Goldman Sachs, Morgan Stanley and Bank of America as well as to big European banks. The IMF wrote that Deutsche Bank posed a greater threat to global financial stability than any other bank as a result of these interconnections. When the IMF made that assessment in 2016, Deutsche Bank had tens of billions of dollars more in market cap than it does today.

iii) Other physical stories:

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.1245/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.1234   /shanghai bourse CLOSED DOWN 29.91 POINTS OR 1.00%

HANG SANG CLOSED DOWN 335.68 POINTS OR 1.28%

 

2. Nikkei closed DOWN 78.69 POINTS OR 0.36%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index UP TO 98.64/Euro FALLS TO 1.0988

3b Japan 10 year bond yield: FALLS TO. –.26/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 107.37/ 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:: 56.47 and Brent: 6202

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 -.61%/Italian 10 yr bond yield DOWN to 0.80% /SPAIN 10 YR BOND YIELD DOWN TO 0.09%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.41: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.34

3k Gold at $1528.00 silver at: 18.54   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 38/100 in roubles/dollar) 64.35

3m oil into the 56 dollar handle for WTI and 62 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 107.37 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 .9865 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0840 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.61%

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 2.09%

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

6.  TURKISH LIRA:  UP  TO 5.7029..

Global Stocks Tumble, Futures Sink As Traders Brace For Political Quake In Washington

World stocks fell to a two-week low, and US equity futures failed to sustain a modest bounce following a report of fresh “trade optimism” between America and China after U.S. lawmakers called for an impeachment inquiry into President Donald Trump, increasing the prospects of prolonged political uncertainty. The Dollar surged and interest rates were flat as traders braced for a “political quake” showdown between the president and democrats in Washington where Donald Trump is set to reveal both the transcript of his phone call with the Ukraine president as well as the full whistleblower complaint.

 

Despite a brief boost higher in the S&P EMmini future late on Tuesday night, when Bloomberg reported that China was preparing to purchase more U.S. pork – in what is supposedly another act of trade goodwill – as Beijing battles against domestic shortages and top trade negotiators from both nations plan to meet in Washington next month, the bearish mood prevailed and the “official” impeachment inequity launched by Democrats in the House of Representatives on Tuesday, exacerbated market anxieties running high over global recession risks. Of course, the impeachment inquiry will not actually lead to Trump’s removal from office: even if the Democratic-controlled House voted to impeach Trump, the Republican-majority Senate has said it will promptly kill the unprecedented motion.

Not helping sentiment was Trump stinging speech at the UN in which he delivered rebuke to China’s trade practices, adding to the pressure after more conciliatory tones in recent days.

 

Contracts for all three main equity gauges signaled more declines at the New York open as traders grappled with the impeachment investigation into President Donald Trump, seemingly getting little comfort from a Bloomberg report that China is preparing to buy more U.S. pork.

 

Meanwhile, adding to the China trade war concerns is the narrative that with impeachments proceedings now launched against Trump, China will delay its pursuit of any deal, hoping that either the president is removed or loses the 2020 presidential election. As such the next year will likely see no movement at all in the trade war between the two nations which has already sent Germany’s economy into a recession.

“It is hard to imagine how long can the truce with China remain on trade and that is adding to the general cautious environment for stocks,” said Neil Mellor at BNY Mellon in London. “As soon as markets start worrying about trade, they look at central banks for help but there is increasing pushback from them too.”

Also adding to geopolitical tensions is uncertainty over the outlook for Britain’s Brexit chaos after the Supreme Court ruled Prime Minister Boris Johnson had unlawfully suspended parliament.

MSCI’s global stock index dropped 0.4% in a fourth straight day in the red – the longest losing streak since the end of July rout.

European shares were broadly in the red, with Europe’s Stoxx 600 dropping 1.4% as technology stocks lead the losses, following Tuesday’s tumble in some of the biggest U.S. tech companies. France’s CAC tumbled 1.6% with export-reliant Germany falling 1.3%.

The downturn in Europe followed declines in Asia where Tokyo’s Nikkei suffered its largest loss in three weeks while China and Hong Kong dropped 1% or more.  Nearly all markets in the region were down, with Hong Kong and South Korea leading declines. The Topix dropped 0.2%, snapping a three-day rising streak, with automakers and machinery firms among the biggest drags. The Shanghai Composite Index retreated 1%, driven by PetroChina and Kweichow Moutai. China’s economy in the third quarter was the weakest it has been this year, according to the China Beige Book, with manufacturing, property and the services sectors all worsening. India’s Sensex declined 1.2%, dragged by Housing Development Finance and HDFC Bank. Trump said he expects a trade deal with India very soon, while meeting Indian Prime Minister Narendra Modi at the United Nations General Assembly.

“Chinese shares were already exposed to downside risks. Trump’s comments likely increased those risks,” said Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Kokusai Asset Management Co in Tokyo. “There are worries about U.S. consumer sentiment. There are also concerns that China’s economic slowdown hasn’t stopped.”

As risk assets took a beating, China’s offshore yuan fell.

 

China Foreign Minister Wang Yi said US and China need to take their bilateral relationship forward with wisdom and conviction, while he added that the relations have come to a crossroads and the trade war has inflicted losses on both sides. Wang further commented that neither US nor China can move ahead without the other and that opening up, as well as integration represent the way forward. However, Wang also stated US reverting to containment policy on China is a wrong idea which cannot possibly work, and that China will remain on its own path, while he added US should not try to change China and that trade negotiations cannot happen under threats.

In FX, the Bloomberg Dollar Spot Index erased much of its Tuesday drop as the greenback advanced versus all its peers amid political uncertainty in the U.S. and the U.K. The risk-sensitive Swedish krona led losses in the G-10; the pound reversed its Tuesday gain as U.K. Prime Minister Boris Johnson returned to the country after Britain’s Supreme Court ruled that he’d broken the law by suspending Parliament.

“Predicting the ultimate outcome of Brexit remains difficult,” said Mark Haefele, Chief Investment Officer, UBS Global Wealth Management. “As a result, the longer-term risk-return outlook for UK equities looks uncertain. We still advise being nimble on sterling.”

The yen weakened for the first time in five days against the dollar. Yields on 5-year Japanese government bonds slipped to a record low of minus 0.4% after comments from central bank Governor Haruhiko Kuroda added to speculation of an interest-rate cut in October while euro-area bonds gained to outperform Treasuries. Semi-core European debt led the advance in the region. The yield on 10- year U.S. Treasuries fell nearer to a two-week low with the the yield on benchmark 10-year Treasurys rising to 1.6387%, while the two-year yield stood at 1.6076%.

In commodities, crude futures declined after Saudi Aramco said it was ahead of schedule in restoring output that was reduced by a drone attack earlier in September.

In gepolitics, Iranian government spokesman says that President Rouhani will make important proposals in New York to build confidence and break the current deadlock, Limited amendments to nuclear deal could be accepted in exchange for Washington’s return to the agreement and Tehran is ready to reassure everyone that it is not seeking a nuclear weapon. US Secretary of State Pompeo tweeted that Iran must not be allowed to continue its destructive behaviour and suggested for the sake of the Iranian people and the world, the UNSC has a vital role to play in ensuring the UN arms embargo on the world’s top sponsor of terrorism

On today’s calendar, we got mortgage applications which crashed 10.1% in the past week as rates modestly picked up, and new home sales. HB Fuller is among companies reporting earnings.

Market Snapshot

  • S&P 500 futures down 0.2% to 2,963.75
  • STOXX Europe 600 down 1.3% to 384.87
  • MXAP down 0.6% to 158.22
  • MXAPJ down 0.9% to 503.19
  • Nikkei down 0.4% to 22,020.15
  • Topix down 0.2% to 1,620.08
  • Hang Seng Index down 1.3% to 25,945.35
  • Shanghai Composite down 1% to 2,955.43
  • Sensex down 1.2% to 38,635.61
  • Australia S&P/ASX 200 down 0.6% to 6,710.22
  • Kospi down 1.3% to 2,073.39
  • German 10Y yield fell 1.3 bps to -0.613%
  • Euro down 0.2% to $1.1002
  • Italian 10Y yield rose 0.2 bps to 0.494%
  • Spanish 10Y yield fell 2.4 bps to 0.094%
  • Brent futures down 1.5% to $62.13/bbl
  • Gold spot little changed at $1,531.73
  • U.S. Dollar Index up 0.2% to 98.53

Top Overnight News from Bloomberg

  • Speaker Nancy Pelosi said the House is opening a formal impeachment inquiry of President Trump, saying he violated his oath of office and obligations under the Constitution. The U.S. Justice Department suggested it may defend Trump’s effort to block a subpoena to his accountant for tax records and other private documents
  • Chinese companies are preparing to purchase more U.S. pork, according to people familiar with the situation, with top trade negotiators from both nations set to meet in Washington next month
  • A defiant Boris Johnson hit back at the U.K.’s top judges and vowed to take the country out of the European Union next month, despite suffering an unprecedented legal defeat over his Brexit strategy in the highest court in the land. Labour rules out election until no-deal risk over
  • China’s economy in the third quarter was the weakest it has been this year, according to the China Beige Book, with manufacturing, property and the services sectors all worsening, even as borrowing picked up
  • Japan’s five-year government bond yield slipped to a record low after comments from central bank Governor Haruhiko Kuroda added to speculation of an interest-rate cut in October. BOJ’s Masai says FX could exert negative effects on Japan prices
  • The leaders of France and the U.K. urged Iranian President Hassan Rouhani and President Trump to meet on the sidelines of the UN General Assembly in what appeared to be rapid-fire shuttle diplomacy aimed at easing tensions

Asian equity markets tracked the losses seen across global peers amid headwinds from the US where sentiment was dragged by weak Consumer Confidence data, increasing impeachment concerns and after President Trump kept a hardline tone on China and Iran. ASX 200 (-0.6%) and Nikkei 225 (-0.4%) were lower with Australia pressured by losses in the mining-related sectors and after optimistic comments on the economy from Governor Lowe placed some doubts regarding a rate cut next week, while Japan trade was dampened by recent flows into its currency and ongoing uncertainty regarding a trade deal with the US. Hang Seng (-1.2%) and Shanghai Comp. (-1.0%) were also negative after US President Trump kept a hawkish tone on China during his UN speech in which he alleged China has not adopted promised reforms, uses heavy state subsidies, steals intellectual property and manipulates its currency. This was later followed by comments from China’s Foreign Minister Wang who responded with a more conciliatory tone in which he suggested the sides need to take their bilateral relationship forward with wisdom as well as conviction and that neither countries can move ahead without the other, although he also added the US should not try to change China and that trade negotiations cannot happen under threats. Finally, 10yr JGBs were higher amid the negative risk tone and as the pressure on yields resumed with the 10yr yield below -0.25% and the 5yr yield touched a record low which has spurred speculation BoJ may be forced to reduce is regular purchases, while weaker results at the 40yr JGB auction did little to dent the rally in Japanese bonds.

Top Asian News

  • BOJ’s Masai Offers New Reason for Sitting Tight Amid Easing Talk
  • Kuroda Gets a Steeper Curve as Five-Year Yield Sets Record Low
  • Thailand Holds Interest Rate as it Downgrades Growth Outlook
  • Philippine Central Bank Cuts 2019 Inflation Forecast to 2.5%

Major European bourses (Euro Stoxx -1.3%) are lower, with sentiment weighed by a number of factors. Prior to the cash open, fresh concerns regarding US/EU trade relations were stoked; reportedly the US, in retaliation for illegal EU subsidies for Airbus (-0.5%) (as ruled recently by the US), is mulling hit EU imports with tariffs that randomly rotate, so as to hit as many industries as possible and create higher levels of uncertainty. 2) US President Trump impeachment. Additionally, the possibility of the impeachment of US President Trump adds further uncertainty to the macro backdrop. Further negative ticks were seen across equities (most pronounced in the DAX) on the reports that China is to accelerate the public listings of chip companies on Shanghai’s STAR stock market in the latest initiative by Beijing, as China counter US technology sanctions and speed the development of its semiconductor industry. Sectors are all in the red, with Tech (-2.0%) and Consumer Discretionary (-1.7%) leading the decline, while more defensive Utilities (-1.0%), Health Care (-1.1%) and Consumer Staples (-0.8) are lower but faring better. In terms of individual movers; Adidas (-0.8%) was higher at the open, in sympathy with Nike, who are higher in premarket trade after posting strong earnings, before succumbing to the broader market’s negative feel. Wirecard (-2.4%) is under pressure after a downgrade at UBS. EDF (-7.1%) sunk on the news of further delays to projects and a higher build up in associated costs that expected. Babcock (+4.3%) is higher, after posting a positive trading update.

Top European News

  • TeamViewer Makes Drab Debut After IPO Priced at Upper End
  • Did ECB Accidentally Tighten Policy? Analysts Won’t Let it Drop
  • Europe’s Funds Are Hunkering Down in Bonds for Coming Recession
  • Aston Martin Sells Bonds to Bridge Cash Gap Ahead of SUV Launch

In FX, the broad Dollar and Index is staging a recovery following yesterday’s losses after DXY briefly dipped below 98.30 due to a combination of further Fed repo operations, downbeat US consumer sentiment and strength in G10 peers. DXY now treads water just above 98.50 ahead of yesterday’s high of around 98.70 with participants keeping an eye on events State-side as the House is to open a formal impeachment inquiry into US President Trump (analysis on the RANsquawk headline feed) whilst Fed’s Evans (Voter, Dove) is due to speak at 1400BST on the economy and policy.

  • GBP, EUR – Sterling is on the backfoot today ahead of Parliament’s return at 1130BST (analysis on the RANsquawk headlines) with initial downside in Cable coinciding with reiterations from Labour leader Corbyn, who stated that the earliest he would call a general election would be October 17th after the PM has requested a Brexit extension, although a firmer Buck somewhat influenced currency action. GBP/USD has reversed a bulk of yesterday’s gains with the pair back below the 1.2450 level after breaching its 10 DMA (1.2462) ahead of support between 1.2410-15. Meanwhile, EUR/USD remains around the 1.10 handle (where 740mln in options expire at today’s NY cut) , off its high of around 1.1023 (amid a firmer Buck) ahead of resistance and 1.1025, also where offers have been reported, whilst to the downside, EUR/USD sees resistance at 1.0980.
  • NZD, AUD – The Kiwi has given up most a bulk of its post-RBNZ gains in which the Committee agreed that developments since the August Statement had not significantly changed the outlook for monetary policy. The RBNZ reached a consensus to keep the OCR at 1% and that, if necessary, there remains scope for more fiscal and monetary stimulus. CB also maintained a neutral stance despite some calls for an easing bias to be reintroduced. NZD/USD resides around 0.6325, having visited a high of 0.6350 (on the decision) and vs. a pre-announcement low of 0.6305. Meanwhile, the Aussie has faded yesterday’s Lowe-induced gains with some potential pressure from weaker copper prices and as the AUD/NZD cross falls further below 1.0750 having earlier tested 1.0700 to the downside.
  • EM – The Lira continues to strengthen in European trade, this time amid comments from the CBRT Governor who reiterated the Central Bank’s “cautious” stance, in turn providing some relief to investors who fear that the Bank may be jumping the gun following two back-to-back deeper than forecast rate cuts. The Governor also acknowledged the continuing improvement in inflation whilst also noting an economic recovery in H2. USD/TRY is back below the 5.7000 level (low 5.6784) having declined from an intraday high of 5.7100.
  • RBNZ maintained the Official Cash Rate at 1.00% as expected, while it stated the committee agreed new information did not warrant significant change to the policy outlook and that a steady OCR is needed to ensure inflation increases to the mid-point of its target range. RBNZ added there remains scope for fiscal and monetary stimulus, that domestic rates can be expected to remain low for longer but also noted that low rates and government spending is expected to support demand in the coming years. (Newswires)

In commodities, the crude complex is lower on Wednesday morning, seemingly in line with equities, although bearish supply side news doing the rounds is also likely a factor in the downside; reportedly, Saudi Aramco is recovering faster than expected form the recent attacks on its oil facilities, with total daily production capacity likely to be restored to over 11mln BPD roughly one week ahead of schedule. On the topic of bearish impulses; more reports focusing on the fact that the US drilled-but-uncompleted wells (DUCs) count is declining, possibly an indication that companies have started completing unfinished wells, which could foreshadow elevated US crude output, have been doing the rounds. Elsewhere, the complex has taken little impetus from geopolitics; Iranian President Rouhani has indicated a willingness to make some concession if the US eases sanctions (which remains a big if, especially given US President Trump’s slightly hawkish UNGA speech yesterday), and may unveil some proposals at the UN later today. WTI futures are again below the USD 56.50/bbl mark, consolidating for now around USD 56.50/bbl figure, meanwhile Brent remains near the USD 62/bbl level. Spot Gold futures are fairly flat, seemingly unable to take advantage of woes in the equity market, and is blanketed by support and resistance at USD 1520/oz and USD 1536/oz respectively. Elsewhere, copper is lower, in line with general sentiment.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior -0.1%
  • 8am: Fed’s Evans Discusses Economy and Monetary Policy
  • 10am: New Home Sales, est. 658,000, prior 635,000; New Home Sales MoM, est. 3.62%, prior -12.8%
  • 10am: Fed’s George Speaks to Senate Banking Panel on Payments System
  • 10am: Fed’s Brainard Speaks Before House Panel on Financial Stabilit
  • 7pm: Fed’s Kaplan Speaks in Moderated Q&A

DB’s Jim Reid concludes the overnight wrap

Although nothing seems that abnormal these days, yesterday was pretty remarkable as two of the most powerful leaders in the world faced serious misconduct/legal charges and accusations. After the US closing bell the day’s speculation that Mr Trump would face an impeachment inquiry materialised as Nancy Pelosi formally announced the start of the process in the US House of Representatives. This followed an unprecedented Supreme Court hearing in the U.K. which found that PM Johnson’s decision to prorogue Parliament was unlawful. They will reconvene today some three weeks ahead of the PM’s prior wishes.

The impeachment inquiry regards a phone call between President Trump and Ukrainian President Zelenskiy from July. An anonymous individual in the US intelligence community, who was apparently listening to the call as part of his job, issued a whistleblower complaint to his superiors alleging that a senior US administrator had improperly interacted with a foreign official, possibly by asking for political assistance in a US election. The Trump administration has refused to release the complaint to Congress, which Pelosi argues is illegal since the law requires all complaints to be forwarded to the legislature. Per Pelosi’s announcement, both the alleged misconduct on the call and the withholding of the complaint are two separate but parallel grounds for the impeachment inquiry.

Equity markets in the US and Europe had already pared earlier gains after slightly more negative trade comments from Mr Trump at the UN General Assembly (see below). The S&P 500 then took another leg lower after the European close as media outlets reported that the impeachment inquiry may happen. The S&P 500 traded as low as -1.14% after those unconfirmed press reports and the NASDAQ fell to -1.74%. However, both indexes pared part of their declines in mid-afternoon after Trump announced that he will release the full transcripts of the relevant phone call by later today. The S&P 500 and NASDAQ ended the session -0.84% and -1.46% lower, respectively.

Mr Trump’s earlier trade comments suggested that “hopefully we can reach an agreement that will be beneficial to both”, but that China hadn’t adopted the reforms they’d promised. He also spoke positively about the “massive tariffs on more than $500 billion worth of Chinese-made goods” and lauded that “supply chains are relocating back to America (…) and billions of dollars are being paid to our treasury.” Trump also pivoted directly from talking about trade to discussing the situation in Hong Kong, which would be a confrontational step if he starts to link the two topics.

Overnight Bloomberg has reported that Chinese companies are preparing to purchase more US pork. The story further added that the volume of the purchases hasn’t been finalised but may be around 100,000 tons, some of which will be for state reserves. This comes ahead of meeting between top trade negotiators from both nations next week and points to continued improvement in mood music ahead of the talks; however, one needs to be cautious given the uncertain nature of these talks and above mentioned comments from Trump at the UNGA. Elsewhere, Chinese Foreign Minister Wang Yi has said that both the US and China have shown good will with recent tariff moves while adding “Conflict and confrontation can lead nowhere and neither country can mould the other in its image.” He also said that China also expects the US to remove its own restrictions on Chinese trade and investment.

Asian markets are trading down this morning with the Nikkei (-0.47%), Hang Seng (-0.95%), Shanghai Comp (-0.57%) and Kopsi (-0.80%) all lower. However, most of the indices have pared deeper declines after the trade story above hit the wires. S&P futures which were flat after Pelosi’s announcement, are also up +0.22%. 5yr JGB yields are trading down -3.3bps this morning at a record low of -0.399%, surpassing the previous low reached in July 2016. 10y JGB yields are down a more limited -2.4bps to -0.271%. The moves comes after the BoJ Governor Kuroda said yesterday that he was closer to adding stimulus now than he had been earlier in the year while adding, “I don’t think we need to rule out cutting negative rates as a policy option at this point.” Overnight, the White House has also listed a 4pm press conference with President Trump in New York in the President’s daily schedule. So one to watch for. In terms of overnight data releases, Japan’s August services PPI came in one-tenth above consensus at +0.6% yoy while previous months read was also revised up by one tenths to +0.6% yoy.

The sharp US equity moves yesterday snapped the recent stretch of lower vol trading conditions. Indeed, on a closing basis, the S&P 500 had traded in a 0.59% range over the last 9 sessions, the tightest such range in just over a year. That had placed it within roughly +/-0.5% of the symbolic 3,000 level every session over that period, before snapping out to the downside last night. As mentioned above European equities closed below their earlier peaks but before the main part of the US’s afternoon selloff. The STOXX 600 ended flat while the DAX retreated -0.29%. The FTSE 100 (-0.46%) also fell thanks to sterling’s appreciation.

Indeed sterling rallied +0.50% yesterday as the UK Supreme Court ruled in a unanimous judgement that Prime Minister Johnson’s advice to the Queen to suspend Parliament “was unlawful, void and of no effect”, and that Parliament “has not been prorogued”. Furthermore, the President of the Supreme Court said that “The effect upon the fundamentals of our democracy was extreme”, and that “No justification for taking action with such an extreme effect has been put before the court.” The ruling is a massive setback for the government, who had planned that Parliament wouldn’t return until 14th October. After the ruling was announced, the Speaker of the House of Commons, John Bercow, said that Parliament would return this morning, and MPs would have further opportunities to scrutinise government ministers and apply for emergency debates.

In response to the decision Prime Minister Johnson, who had also been at the UN General Assembly in New York yesterday, changed his plans to fly back to the UK for Parliament’s resumption. He said he “strongly disagrees” with the ruling but that he’d respect the court’s decision. The developments from the Supreme Court rather upstaged the opposition Labour Party’s annual conference yesterday, with the resumption of Parliamentary proceedings leading Jeremy Corbyn to bring forward his speech by a day to be back in Parliament. Corbyn reiterated his stance in favour of a second referendum, pledging to implement whichever option the public decided. Notably, he said that he wouldn’t support another election until no-deal had been taken off the table, opposing Johnson’s attempts to call one for the time being. In terms of other proposals from the speech, which on another day would have been newsworthy in themselves, the highlights included proposals for: creating a state-owned drug manufacturer to produce low-cost generic drugs; nationalising rail, water, and postal companies; zero carbon emissions by 2030; and state-provided personal care for senior citizens. Perhaps most impressively, he promised to deliver the suite of new benefits without raising the national debt. This follows news from the previous day that we’ll all work 4-day weeks within a decade here in the U.K. under a new Labour administration.

Back to markets and in Europe the post ECB sell-off in bonds is becoming more of a distant memory as sovereign recovered from earlier losses to end the session higher, with bunds (-1.9bps) and OATs (-0.8bps) rallying following slightly disappointing US data (see below). We did have some European data releases yesterday, but following the previous day’s underwhelming PMIs, the releases weren’t quite so bad. In Germany, the Ifo business climate index rose three-tenths to 94.6 (vs. 94.5 expected), while the current assessment reading rose to 98.5 (vs. 96.9 expected). The dampener was the expectations reading however, which fell to its lowest in a decade at 90.8 (vs. 92.0 expected). Looking at the sector balances in the Ifo, services saw an uptick to 16.6 (from 13.0 in August), but both manufacturing (at -6.4) and trade (-3.7) slid deeper into negative territory. Data from France was more positive at the top level too, with the INSEE’s business climate composite indicator rising to 106.2 (vs. 105 expected), the joint highest over the last year.

A particular area that suffered in Europe yesterday were automobile stocks, with the STOXX Automobiles and Parts Index down –1.36% after Volkswagen’s CEO and Chairman, along with a former CEO, were charged by German prosecutors with market manipulation from failing to disclose knowledge of the emissions cheating scandal that has since cost the company billions of dollars in fines. Meanwhile Daimler was also fined €870m over vehicles that didn’t meet emissions regulations. Volkswagen and Daimler closed down -2.16% and -1.68% respectively.

Oil was a further casualty, with Brent Crude down -3.21% yesterday, as concerns about global energy demand following the US data releases coupled with hopes that Saudi output would be restored sent prices lower. Gold advanced +0.65% however as investors sought out safe havens, up for a 4th successive positive session.

As for the US data, the Conference Board’s consumer confidence indicator fell to 125.1 (vs. 133.0 expected), while the present situation (169.0) and the expectations readings (95.8) also lost ground on last month. Adding to the negative sentiment, the Richmond Fed’s manufacturing index underwhelmed as well, falling to -9 (vs. 1 expected). Following the releases, the dollar slipped back while Treasuries rallied, with 10yr yields down -8.6bps, though the rally gained momentum amid the equity selloff during the NY afternoon session. The 2s10s curve flattened by -1.8bps to close at 2.3bps the lowest since September 6.

Turning to the day ahead, data highlights include French consumer confidence for September and the CBI’s September distributive trades survey from the UK, while from the US we have August new home sales figures and weekly MBA mortgage applications. In terms of central bank speakers, we’ll be hearing from the ECB’s Coeure and Lautenschlaeger, the Fed’s Evans, George and Brainard , and the BoE’s Governor Carney. And of course keep an eye out for further developments on Brexit as both houses of the UK Parliament will be sitting again.

END

 

3A/ASIAN AFFAIRS

I)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 29.91 POINTS OR 1.00%  //Hang Sang CLOSED DOWN 335.68 POINTS OR 1.28%   /The Nikkei closed DOWN 78.69 POINTS OR 0.36%//Australia’s all ordinaires CLOSED DOWN .61%

/Chinese yuan (ONSHORE) closed DOWN  at 7.1245 /Oil DOWN TO 56.47 dollars per barrel for WTI and 62.02 for Brent. Stocks in Europe OPENED RED/ONSHORE YUAN CLOSED DOWN // LAST AT 7.1245 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.1238 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST  7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

China/USA

Interesting: with all of the turmoil in Hong Kong plus trade wars etc, Chinese home buying plunges to an 8 yr low

(zerohedge)

 

Chinese Home buying In US Plunges To 8 Year Low

According to a new report from Reuters, leading Chinese real estate website, Juwai.com, estimates that Chinese buyers purchasing US homes will plunge to an eight-year low by the end of 1Q20.

Real estate data from Juwai estimates US home sales of Chinese buyers would drop to between $10 billion and $12 billion by the end of March 2020, is down from the $13.4 billion reported for the year ended in March 2019 via National Association of Realtors (NAR) and down from $30 billion seen in 2017 and 2018.

The site’s executive chairman, Georg Chmiel, told Reuters that the exodus of Chinese buyers comes at a time when many have worried about obtaining US visas, the weakening yuan, escalating trade tensions between the US and China, and overpriced real estate in the US, had spurred buyers to go elsewhere in the hunt for yield.

 

“The Trump administration’s tariffs, aggressive rhetoric, targeting of Chinese graduate students at US universities, and new visa red tape have all hurt Chinese demand,” Chmiel told Reuters.

He said Chinese buyers commonly use US real estate as investments and second or third homes.

“With the trade war going on, it’s easy to imagine a scenario in which you might be forced to sell or your investment might otherwise lose value,” he warned.

The removal of Chinese buyers has already started to weigh on luxury homebuilder Toll Brothers Inc, warning about slumping sales in California.

Lennar Corp has also warned about the housing slowdown on West Coast markets, and how it’s likely due to a pullback in buying from the Chinese.

Gay Cororaton, a senior economist at the NAR, said a manufacturing slowdown in China and a declining yuan had deterred many Chinese homebuyers from purchasing US properties in 2018/19, mainly in the regions of the West Coast.

“Chinese buyers form a significant portion of international home sales in California, where home prices have been increasing steadily, and that has been one of the factors acting as a deterrent for home purchases, when the yuan has declined,” Cororaton said.

“They might look for properties in areas that are less expensive than California, such as Texas and Seattle. And this could put downward pressure on prices in California,” he added.

Dean Jones, principal and owner at Seattle-based brokerage Realogics Sotheby’s International Realty, said Chinese homebuyers shifted their attention to Seattle markets this year, away from California, because prices were selling for a third or half the price than San Francisco or Los Angeles.

Chinese buyers could be marking the top of the US real estate market.

S&P CoreLogic Case-Shiller’s 20-City Composite price index rose just 2.13% YoY in June – the weakest growth since August 2012, with the expectation the index could go negative before the 2020 election year.

This is the 15th straight month of YoY declines in price. The slide in home prices is happening at the same time when the Chinese buyer is pulling back on US real estate. Not even a plunge in mortgage rates managed to save housing this summer.

And the removal of Chinese buyers comes at a time when Nobel laureate Robert Shiller warns of an imminent housing correction, accompanied by a recession.

Bloomberg Economics

@economics

Nobel laureate Robert Shiller said he “wouldn’t be at all surprised” if U.S. house prices start to fall https://bloom.bg/32EOb7l

Embedded video

So what happens to real estate prices in California when the Chinese turn to net sellers? It’s likely a housing correction for West Coast markets has already arrived.

end

Ahead of the October talks, China is purchasing pork which it needs badly anyway

(zerohedge)

China Prepares US Pork Purchases Ahead Of Trade Talks  

China is on a meat-buying spree, increasing beef, pork, and poultry prices around the globe as the communist regime races to replenish its meat stockpiles after the so-called “pig Ebola” hit hog farms across the country, resulting in collapse in China’s pig population. Seen as goodwill ahead of trade talks next month, sources told Bloomberg, China is ready to purchase more US pork products, although the reality is that China is desperate to buy pork from anywhere it can find it.

China had to dramatically reduce its pig herd, the world’s largest, by at least 33% in the last year after the deadly African swine fever virus devastated its farm belt.

Chinese companies are speaking with Smithfield Foods, controlled by China’s WH Group, and Tyson Foods, Bloomberg reported and could finalize a deal in the coming days, if not weeks, for an order that could be around 100,000 tons – a lot of the pork would be used to refill state reserves, sources said.

Potential pork purchases from the US could be a sign of goodwill ahead of trade talks next month. But it seems that China has other concerns: with low stockpiles of meat, the Asian country has been quickly buying beef, pork, and poultry around the world, this year, straining global supplies, to avoid domestic problems as retail pork prices in the country jump 70%.

The country is facing a historic pork shortage, sparked partially by the swine disease and a ban on US agriculture products.

Faced with more food shortages, China granted new tariff waivers for US soybean purchases earlier this week.

Chinese State Councilor and Foreign Minister Wang Yi said in New York on Tuesday that China still wants all tariffs removed before they commit to a trade deal, something that the Trump administration will have difficulty in doing.

As shown in the chart below, S&P GSCI-Lean Hogs Index Spot has found a short term bottom in the last month – on the belief that a trade deal could be imminent – something that is unlikely to happen this year.

 

4/EUROPEAN AFFAIRS

UK

With the most likely calling for an election, Corbyn is the most unpopular opposition leader siunce 1977

(zerohedge)

As UK Election Looms, Corbyn Is The Most Unpopular Opposition Leader Since 1977

Even before the hammer blow of yesterday’s Supreme Court ruling, it was for many a damning indictment on Jeremy Corbyn and Labour, that in a time of such disarray and division in the (now minority) government, that they are still behind in the polls and showing no real signs of being able to beat Boris Johnson and the Tories in an election.

As Statista’s Martin Armstrong points out, this situation is now also underscored by historic survey analysis by Ipsos MORIGoing all the way back to 1977, there hasn’t been a leader of the opposition which has inspired so little confidence among the British public.

Infographic: Corbyn: most unpopular opposition leader since 1977 | Statista

You will find more infographics at Statista

 

When comparing the lowest ‘net satisfaction rate’ (see infographic footnote for a definition) of all opposition leaders, Corbyn is, with his current minus 60 percent, the most unpopular in over 40 years. Michael Foot managed to sink to minus 56 percent when sitting across from Margaret Thatcher in August 1982, but otherwise, no other leader has come close to Corbyn’s September 2019 low.

END
Europe
An excellent commentary from Jeffrey Snider of Alhambra as the goes through the numbers and states that Europe’s economy is in one big mess
(Jeffrey Snider/Alhambra)

“It May Already Be Too Late For Europe’s Economy…”

Authored by Jeffrey Snider via Alhambra Investment Partners,

No Longer Hanging In, Europe May Have (Been) Broken Down

Mario Draghi can thank Jay Powell at his retirement party. The latter being so inept as to allow federal funds, of all things, to take hold of global financial attention, everyone quickly shifted and forgot what a mess the ECB’s QE restart had been. But it’s not really one or the other, is it? Once it actually finishes, the takeaway from all of September should be the world’s two most important central banks each botching their “accommodations.”

It’s only a little weird how European QE was changed and relaunched without an actual vote from by the central bank’s governing council. That body has 25 voting members. Nine have already spoken out against it, either directly in public or in private conversations with members of the media. President Draghi simply declared it a majority consensus

 

The most outspoken has been the usual Northern contingent led by Germany and the Netherlands. Their chief complaint is as old as the crisis which struck twelve years ago, the same one Europe nor anyone else can seem to ever get past. According to the dissenters, European policymakers are once again punishing prudent savers (NIRP) and rewarding the reckless bubble suspects (QE).

Besides, they say, there’s no need for any of this in the first place. Klaas Knot, the head of the Dutch central bank, called the policy “disproportionate” and voiced concerns over whether it would achieve any of its goals (a near half decade of it up to the end of 2018 apparently didn’t do much lasting good). Jens Weidmann, the notorious chief of Germany’s Bundesbank, famous for being the most skeptical, was quick to complain to German media that Draghi had “overstepped the mark.”

The economic situation is not all that bad, wages are growing strongly, and the spectre of deflation – that is, of persistently contracting prices and wages – is nowhere to be seen.

That had become the conventional view after the shock of disappointment early on this year had been absorbed. Draghi had ended 2018 by terminating the last QE and expecting to raise rates, to begin normalizing in a manner that might would’ve pleased the Germans and Dutch for once. But that was all predicated on misimpressions of the economic circumstances.

Draghi had said that in 2017 Europe was absolutely booming and so there was no reason to suspect it wouldn’t just keep going into 2018 and 2019. When Europe’s economy instead hit a wall right at the very start of last year, in January 2018, he dismissed the slowdown as nothing more than transitioning from awesome to good. Nothing to get worried about, no real risks.

It’s turned out to be more serious than that, a change which became noticeable more than a year and a half ago. As such, people are getting very impatient; including, it seems, at least nine ECB Governing Council voters (who didn’t get to vote on QE). The thinking seems to be that Europe has seen the worst; yep, the European economy did become weaker than anyone was expecting, but if there was going to be a recession it surely would’ve shown up before now.

The bottom must be in; therefore no QE is needed.

The economic data seemed to support the idea. For the Continent as a whole, GDP reached its lowest point (so far) in the third quarter…of 2018. It hasn’t sprung back to life, either, rather GDP suggests something like the smallest amount of growth. Not a pickup, but hardly recessionary.

The more it stayed that way the more Draghi’s skeptics have been saying the worst is over. For all the talk and plunging bund yields, they believe Europe is hanging in reasonably well.

The danger has been the flipside of time, though. The longer it goes without growth the greater the danger of falling into recession. That’s been the bond market’s near steadfast view throughout this year. Dismiss weakness all you want, the more it hangs around the greater the likelihood there’s a worse worst case yet to be had.

Data like Markit’s composite PMI had put the track of Europe’s economy right square into this no-man’s land between growth and recession. According to IHS Markit’s estimates, the European system slowed down from January to December 2018. Since, it has been stuck near 50 (being the dividing line) but with some margin to spare above it, further fueling these divergent interpretations.

Today, however, Markit put Weidmann and Knot on notice. The group’s composite PMI fell to 50.4 in September 2019 (flash estimate), down sharply from 51.9 in August which had been consistent with that minimal growth level. It was the lowest composite reading in 75 months, more and more looking at least like levels consistent with the 2012 recession.

It’s not just manufacturing, though the manufacturing recession in Europe has “somehow” gotten even worse. The index for new orders, the most forward-looking piece, has fallen still further. As Markit’s press release notes:

The Eurozone economy came close to stalling at the end of the third quarter as demand for goods and services fell at the fastest rate in over six years.

And it is Germany which is leading the renewed deceleration and decline. Markit’s composite PMI for the one country fell to 49.1 in September from 51.7 in August. That’s an 83-month low as the PMI for specifically manufacturing dropped to just 41.4 – a 123-month low.

For Europe, it’s beginning to look too much like 2012. For German industry, more like 2009. Altogether, downside risks aplenty and proliferating.

It puts Draghi’s critics on the wrong side of where they should be. You can at least understand their position, up to a certain point. QE has become easy to mock, that’s what almost four years of no success will do. But that then means if you are against it you have to say there’s no need for it because otherwise the toolkit is empty.

You can’t be a European policymaker and simultaneously admit Europe’s economy is in rough shape but also how there’s nothing the ECB can do about it. OK, you don’t like QE, then what? They have no idea what else to do. While Draghi has painted himself into the narrow corner of QE-or-bust, his critics have done even worse by boxing themselves into everything-has-to-be-awesome.

In early September, for the first time going back to last year’s landmine the bond market experienced a hiccup. Bund yields had retraced a substantial amount from record lows. A lot of it had to do with the ECB and the idea that maybe the central bank would put something together which would allow the minimal growth state to continue; for Europe to avoid full-scale recession.

The QE debacle along with recent economic data (and not just Germany) suggests neither. It may already be too late for Europe’s economy, and there’s really never been much these bungling fools can do about it.

END

DANSKE/ESTONIA//.NETHERLANDS

The body of former CEO of Danske Estonia, the centre of money laundering throughout Europe has been found,,apparent suicide

(zerohedge)

Body of Danske Bank’s former Estonian chief found Aivar Rehe was at the heart of a €200bn money-laundering scandal — You believe it !?!?

 

Body of Danske Bank’s former Estonian chief found Aivar Rehe was at the heart of a €200bn money-laundering scandal

Aivar Rehe led Danske’s Estonian operations from 2006 until 2015 throughout the scandal © Imago/PA Share on Twitter (opens new window) Share on Facebook (opens new window) Share on LinkedIn (opens new window) Save Richard Milne, Nordic and Baltic Correspondent 5 HOURS AGO Print this page A former Danske Bank executive at the heart of a €200bn money-laundering scandal in Estonia has been found dead in an apparent suicide, according to local police. Police said on Wednesday that after two days of searching for Aivar Rehe, who led Danske Bank in Estonia from 2006 until 2015, they had found his body at his home in the capital of Tallinn. Police declined to give further details but had previously indicated they were concerned the 56-year-old could take his own life, and were not looking for third parties. State broadcaster ERR reported on Wednesday that all signs pointed to suicide. Danske Bank’s Estonian branch is at the centre of one of the largest-ever money-laundering scandals, with €200bn of suspicious money flowing through it from countries including Russia, Moldova and Azerbaijan for more than a decade. The scandal has led to criminal probes against the bank and senior executives in the US, Denmark, Estonia and France. Estonian prosecutors said on Tuesday that Rehe was not a suspect in their investigation. Currently, 10 former employees, mostly lower-ranking ones, are suspects in the Estonian investigation while Danish prosecutors have charged several senior managers in Copenhagen including the bank’s former chief executive and chief financial officer, Thomas Borgen and Henrik Ramlau-Hansen. Rehe had told local media that Danske’s anti-money laundering measures and customer checks were sufficient but that he felt responsible for the scandal. “I’ve run the bank for 10 years and these were my people,” he told Postimees newspaper in March. Rehe had worked as director-general of the tax and customs authority before joining an Estonian bank that after several takeovers became Danske’s local branch in 2007. Estonian financial regulators first forced Danske to close its business serving non-resident customers in 2015, before shutting the entire operations of Denmark’s largest bank in the country. The scandal has cost Danske more than 60 per cent of its market capitalisation and led to the ousting of both its chief executive and chairman.  Danske has admitted that most of the €200bn in non-resident money that flowed through its Estonian branch between 2007 and 2015 was “suspicious” but that it cannot calculate how much was down to actual money laundering. The US Securities and Exchange Commission and Department of Justice are both investigating Danske in probes expected to last several years. Other Nordic banks are also caught up in the money-laundering scandal with Swedbank, Sweden’s oldest lender, losing a third of its value since allegations against it first came out in February.
end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Overnight rockets hit the uSA embassy compound in Baghdad

(zerohedge)

Iran Proxies Escalating? Overnight Rocket Attack Hits US Embassy Compound In Baghdad

Several rockets were fired at Baghdad’s fortified Green Zone overnight, and landed near the sprawling US embassy in Iraq, according to defense officials cited in international reports, in the second such attack since May.

At least two Katyusha rockets landed near the embassy shortly before midnight, according to the AFP, which further cited a security source which described, “One hit about three metres [10 feet] inside a gate on the embassy compound.”

During the attack “several rockets” had been reported, which appeared clearly intent on hitting the American compound, though there were no casualties or significant damage as a result.

 

The US embassy compound in Baghdad’s Green Zone, via AFP.

Over the past months occasional rocket attacks on or near the embassy compound have underscored soaring tensions between US coalition forces and pro-Iran Iraqi Shia paramilitary groups (Popular Mobilization Forces, or PMF). This after US forces have been accused of turning a blind eye following a series of alleged Israeli airstrikes on ‘Iran-backed’ bases in Iraq.

There was no immediate claim of responsibility for the rocket attack, but US officials have pointed the finger at militants backed by Iran after previous similar events, especially given broader regional tensions wherein Iran has claimed itself capable of striking any regional US base or aircraft carrier. The IRGC has lately vowed that any US military action against Iran, even if “limited” retaliation for the Aramco attacks, would result in “all-out war” — with American troops and assets in the region the first in the cross hairs.

The US coalition in Iraq issued a statement Tuesday saying it “would not tolerate” any attacks on the fortified Green Zone – an area which houses western diplomatic buildings and international institutions.

 

Scene after a previous rocket attack near the Green Zone in Baghdad, via Al Jazeera.

The overnight Monday attack also comes as the UK, France and Germany joined the United States in condemning Iran for the Sept. 14 twin aerial strikes on Saudi Aramco facilities.

Currently there’s also a movement gaining ground in Iraq’s parliament to expel the American ‘anti-ISIL’ coalition from the country, given the Islamic State’s recent demise as well as controversial attacks on weapons depots widely blamed on Israel.

END

Iran/USA

Iran offers an olive branch but it will not suffice.  In order for the uSA to return to the bargaining table Iran must give up funding Hezbollah, Hamas and get out of Syria

(zerohedge)

In First, Iran Ready To Accept Changes To Nuclear Deal If Sanctions Lifted

Iran has again signaled its readiness to come back to the table, even if it means potentially pursuing the new ‘Trump deal’ — after the president unilaterally withdrew the US from the 2015 nuclear deal in May 2018. It’s possibly the most the Iranians have been willing to compromise yet, considering previous statements have emphasized a full return of all parties to the original JCPOA.

“If the sanctions are ended and there is a return to the (nuclear) accord, there is room for giving reassurances toward breaking the deadlock and the President (Hassan Rouhani) has even a proposal for small changes in the accord,” an Iranian government spokesman, Ali Rabiei, said on state TV Tuesday.

 

Hassan Rouhani, Office of the Iranian Presidency via AP

This also comes after the UK Prime Minister Boris Johnson has urged Iran as well as his European allies to back a new “Trump deal” this week in what was also a change in course for Britain. “If it was a bad deal — and I’m willing to accept that, it had many, many defects — then let’s do a better deal,” the prime minister told NBC News.

Previously Trump has said he wants to start over, calling the Obama-brokered 2015 deal a failure:

“This deal if I win will be a totally different deal. This will be a totally different deal.”

However, based on the latest tweets by Secretary of State Mike Pompeo, it doesn’t look like Washington is ready to give up sanctions, a tall order for this administration or sanctions addicted Washington in general.

Secretary Pompeo

@SecPompeo

Iran remains the greatest threat to peace & security – that has not changed. We must work together, using all the tools at our disposal, to bring stability and prosperity to the Middle East & deny Iran the resources needed to engage in malign behavior around the world.

In a follow-up tweet he stated that Iran must not be allowed to continue its destructive behavior and suggested for the sake of the Iranian people and the world, the UN Security Council has a vital role to play in ensuring the UN arms embargo on the world’s top sponsor of terrorism.

But again it’s the first time the Iranians have proposed willingness for “small changes in the accord” — which means they could be ready for something new, potentially leaving the JCPOA behind, as Trump has demanded all along.

Washington’s blind commitment and addiction to sanctions though, will likely remain the insurmountable obstacle to any breakthrough leading to new talks.

end

6.Global Issues

Michael Snyder gives his latest numbers that tell us that the global slowdown is accelerating

(courtesy Michael Snyder)

The Latest Numbers Tell Us That The Global Economic Slowdown Is Accelerating Dramatically

Authored by Michael Snyder via The Economic Collapse blog,

Economists are already predicting “the world’s lowest growth in a decade”, but it is beginning to look like what we will be facing will be much worse than that.

In recent days, numbers have been coming in from all over the planet that are absolutely abysmal.  The “global economic slowdown” is rapidly transitioning into a new global economic crisis, and central banks seem powerless to stop what is happening.  They have already pushed interest rates to the floor (actually below the floor in many cases), and over the past decade they have absolutely flooded the global economy with new money.  But despite all of this unprecedented intervention, economic conditions are deteriorating at a pace that is breathtaking.

 

Let’s start by taking a look at what is happening in India.  According to CNN, vehicle sales in India fell a whopping 31 percent in July…

Just two years ago, India’s huge car market was booming and global players were rushing to invest. Now it’s been slammed into reverse.

Sales of passenger vehicles plunged 31% in July, according to figures released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday. It’s the ninth straight month of declines and the sharpest one-month drop in more than 18 years, SIAM Director General Vishnu Mathur told CNN Business.

Those are numbers you would expect to see if we were in the middle of a full-blown economic depression, and it is being projected that this downturn “could result in a million people being laid off”

The slump has prompted companies to slash over 330,000 jobs through the closing of car dealerships and cutbacks at component manufacturers, Mathur said, citing data from industry associations that govern those two sectors.

The Automotive Component Manufacturers Association of India warned in a statement last month that its “crisis-like situation” could result in a million people being laid off.

A million jobs is very serious.

And we are talking about just one industry in one country.

How many jobs will ultimately be lost all over the world in the months ahead?

Over in China, the auto industry is also deeply struggling

China’s Geely (GELYF) revealed this week that its net profit probably plunged by 40% in the first half of the year as the world’s second largest economy slowed. In June alone, its car sales fell 29%.

That isn’t supposed to happen in China.

For decades, China has been one of the primary engines of global economic growth, but now things have changed dramatically.

Perhaps you can blame the trade war for what is happening in China, but the auto industry is also in big trouble in Europe.  In fact, some of the biggest automakers in the world are closing European factories and ruthlessly slashing jobs

Ford is cutting 12,000 jobs and closing six plants in Europe, including an engine factory in the United Kingdom. Jaguar Land Rover, which is owned by India’s Tata Motors (TTM), is slashing 4,500 jobs. Honda is also closing a plant in the United Kingdom.

If those companies expected the European economy to bounce back in the foreseeable future, they would not be making such moves.

But just like you and I, they can see what is happening to Europe’s economy, and on Monday we just received some more deeply troubling news.  The following comes from Zero Hedge

Weakness in euro-area manufacturing hit a climax this morning as German private sector activity plunged to a seven-year low. The Germany Manufacturing PMI slumped in September, dropping to 41.4, down from 44.7 in August, printing below the lowest sellside estimate (consensus of 44.4); worse, the German manufacturing recession is now spreading to the services sector, where the formerly resilient services PMI also slumped from 54.8 to 52.5, also missing the lowest analyst estimate, and collectively, resulting in the first composite PMI print below 50, or 49.1 to be precise, since April 2013. The rate of decline was one of the sharpest in seven years.

It appears that the German economy has already entered recession territory, and these new numbers are not causing anyone to be optimistic.

In fact, “abysmal” is hardly strong enough to describe these absolutely horrible figures

  • Flash Germany PMI Composite Output Index (1) at 49.1 (Aug: 51.7). 83-month low.
  • Flash Germany Services PMI Activity Index(2) at 52.5 (Aug: 54.8). 9-month low.
  • Flash Germany Manufacturing PMI(3) at 41.4 (Aug: 43.5). 123-month low.
  • Flash Germany Manufacturing Output Index(4) at 42.7 (Aug: 45.8). 86-month low.

Of course the U.S. economy has been slowing down for quite some time now, and if you doubt this, I encourage you to read this list of 28 alarming facts about our economy that I posted earlier this month.

We haven’t seen economic conditions like this in the United States since the depths of the Great Recession, and many believe that what is coming will be far worse than the last time around.

And we may be deep into the coming crisis far sooner than many were expecting.  In fact, David Rosenberg of Gluskin Sheff is adamant that there is “a recession coming in the next 12 months”

David Rosenberg, the Gluskin Sheff chief economist and strategist, is warning that a recession is coming. Rosenberg says economic growth in the United States will turn negative sooner than most investors anticipate and the Federal Reserve is powerless.

Even if the central bank lowers interest rates to zero, a recession will still grip the U.S. within 12 months, Rosenberg predicts. “There’s a recession coming in the next 12 months,” he stated with fact last Thursday on CNBC’s “Futures Now. The Fed just lowered its benchmark interest rate last Wednesday by a quarter-point and Fed Chairman Jerome Powell signaled rates would only be cut again if there’s new evidence the economy is softening.

If things really start to deteriorate in the months ahead, we could be in the midst of a horrible economic downturn by the time the U.S. presidential election rolls around.

Let us hope that is not the case, but right now things certainly do not look good for the U.S. economy or for the global economy as a whole.

END
Stephen Guinness lays out 4 areas of events which will shape the economic climate
(Stephen Guinness)

A Confluence Of Events Are Building Ahead Of October 31st

Authored by Steven Guinness,

With less than six weeks before the UK is due to leave the European Union, the geopolitical environment is growing increasingly unstable. Whilst this is not necessarily an indication that Brexit will happen on October 31st, there have recently been some interesting developments globally that merit closer examination. Let’s start with Brexit itself.

Brexit

As it stands, a Halloween exit from the EU remains the default position. Prime Minister Boris Johnson has pledged that if he cannot agree a withdrawal deal with the EU at an upcoming summit on October 17th and 18th, he will not ask for a further extension to Article 50. This is in spite of a bill that passed through parliament in September that legally compels Johnson to go to the summit and request a minimum three month extension if a deal is not forthcoming.

If there is no agreement on a Brexit deal, and assuming Johnson keeps his word and leaves the summit without an extension, I would take this as an indication that the 31st exit date will hold. Parliament would not go quietly, however. One possibility is that right before the departure date MP’s try to force a vote on revoking Article 50 to stop a no deal exit.

This is potentially shaping up towards an eventual no deal mired in legal wrangling. But in the end the manner of such a departure will not matter. As the Article 50 text states, once the treaties binding the UK’s membership to the EU cease to apply, the UK is out. Any rulings made thereafter would not alter this fact.

Many consider Article 50 to be a mechanism designed to thwart Brexit from ever happening. But you could also reason that Article 50 works well from a globalist perspective. If elites want no deal to occur, then Article 50 is the ideal construct as through it they can control the timing of the point of exit and pull the UK out at their convenience.

Watching how Brexit is unfolding, it feels to me like the process is now reaching a crescendo. Perhaps this is why several key positions within the EU are about to change. EU Commission President Jean Claude Juncker is stepping down, as is European Central Bank President Mario Draghi. The date of their departure? October 31st. Christine Lagarde – a leading proponent of digital currencies – will take the reigns at the ECB from November 1st, the day when a new round of quantitative easing will begin to the tune of €20 billion a month. Is this all a mere coincidence?

Meanwhile, the Bank of England still has no forecast for a no deal / no transition exit from the EU, even as the possibility of such a scenario remains open this late in the process. They gave two reasons for this, the first being that no deal is not the policy of the government, and second that it is not the most likely outcome. At a Treasury Select Committee this month, BOE governor Mark Carney said the central bank will instead ‘take stock in November of where the UK stands as a country and adjust accordingly‘.

The BOE’s next policy meeting coincides with their latest inflation report on November 7th. As I have detailed over the months, the economic ramifications of a no deal event would over the ensuing months almost certainly prove inflationary.

On the other hand, there is the possibility that Article 50 is extended again for at least another three months to January 31st. Incidentally, this is the date that Mark Carney is due to depart the Bank of England. In this three month window a snap general election would likely be called, out of which I would expect the Brexit Party to gain enough support to be the deciding factor in the make up of the next government. A Boris Johnson / Nigel Farage coalition would fully encapsulate the narrative of a resurgence in political nationalism, and set the UK on a course for a ‘hard‘ Brexit come January.

An October 31st exit is not certain, but it feels more likely this time around than the original leave date of March 29th. Especially with Boris Johnson in Downing Street.

Federal Reserve

Last week the Fed began a series of sudden overnight repurchase operations in response to a sharp drop in liquidity in financial markets. The liquidity the Fed made available was initially not enough to satisfy demand, resulting in the Fed’s target range of 1.75 – 2% interest rates being breached. So far the Fed have injected hundreds of billions of dollars into the system. They plan to continue these operations until October 10th, and have left open the option of extending past this date.

Dubbed the ‘Fed Repo‘, these actions are not as many analysts claim quantitative easing ‘in all but name‘. They are short term loans, whereas QE is a permanent form of liquidity injection in which the beneficiaries are not obliged to repay. In short, the Fed have been lending ‘primary dealers‘ money, but the dealers in question have put up some form of collateral in order to acquire the funds, such as Treasury securities.

Therefore, the Fed’s balance sheet, which over the past two years they have trimmed by over $600 billion, is not going to grow through these specific actions.

There are questions now about whether bank reserves in the U.S. are sufficient to maintain market stability. In other words, are there enough dollars in the system to keep it from malfunctioning? When announcing a cut in interest rates last week, Jerome Powell mentioned in regards to reserves that ‘we’re going to learn a lot more in the next six weeks‘.

The Fed’s next decision on monetary policy takes place on October 30th – 24 hours before the UK is supposed to leave the EU. If a no deal happens, then it is not difficult to imagine this having an impact on market liquidity, especially if traders were to re-position funds into alternative currencies or be forced to liquidate holdings for cash.

Many expect the next FOMC meeting to be where Powell announces ‘QE4‘. But even if he does (which I am sceptical about), the announcement would come too late to prevent the immediate fallout of an October 31st exit. It would be an example of the Fed acting after the event and not before, which fits with how they reacted to the 2008 financial crisis.

What should not be forgotten here is that a growing liquidity crisis in the U.S. comes in the wake of the Fed having actively engaged in reducing the size of its balance sheet for almost two years. Only since then has market volatility become widespread. Their actions in the Repo markets are not a cure all, nor are they QE. I would suggest that they are a temporary measure to control the speed of an impending financial downturn, perhaps with Brexit serving as a near term trigger event.

U.S / China Trade War

Two days removed from September’s FOMC meeting, news broke that a Chinese trade delegation team in the U.S. had unexpectedly cancelled their planned visit to U.S. farms in Montana and Nebraska. No official reason was given for the cancellation, but what it illustrated was how closely developments in the trade war continue to be in correlation with the policy announcements of the Fed.

Here are some examples:

  1. A day after the Fed raised interest rates on March 21st 2018, Donald Trump asked the U.S. Trade Representative Robert Lighthizer to look into applying tariffs on $50 – 60 billion of Chinese goods.
  2. Two days following another hike from the Fed on June 13th 2018, 25% tariffs on $50 billion of Chinese products were announced.
  3. On September 17th 2018 the U.S. announced 10% tariffs on $200 billion of Chinese imports to begin on the 24th. The Fed raised interest rates on the 26th.
  4. When the Fed cut interest rates on July 31st this year, a day later the Trump administration imposed new 10% tariffs on $300 billion of Chinese goods. These came into effect on September 1st.

As much as Donald Trump criticises the Fed, he has a curious habit of announcing escalations in the U.S. / China trade war that serve as well timed distractions from the central bank’s actions and communications.

The trend since 2018 has been for every round of talks to peter out into no agreement. The stop start nature of negotiations has allowed for the gradual imposition of tariffs that over time have weighed on financial markets and kept geopolitical tensions between the two nations elevated.

Most recently White House advisor Michael Pillsbury signalled that if China does not reach a deal with the U.S. soon, Donald Trump would likely escalate the trade war further by ratcheting up tariffs. Pillsbury described the current tariffs as ‘low level‘ which could subsequently be raised to ‘50 per cent or 100 per cent‘.

What are the chances of an upcoming round of talks in early October yielding little progress, leading to Trump doubling down on tariffs in and around the Fed’s next meeting? Based on past evidence it is a distinct possibility.

Iran

Just over a week ago two oil processing sites in Saudi Arabia were attacked by what the U.S. and the Saudi’s claim were a mixture of missile and drone strikes. Both nations were quick to pin the blame on Iran, despite the apparent lack of hard evidence.

Since then the U.S. have responded by announcing that an unknown amount of troops and additional missile and air defence systems will be deployed to Saudi Arabia, and that new economic sanctions have been levied against Iran’s National Bank. According to Treasury Secretary Steve Mnuchin, the U.S. has now ‘cut off all source of funds to Iran‘.

So far Donald Trump has not been inclined to respond to the attacks militarily. Iran have warned Trump that any retaliatory strikes would lead to ‘all out war‘, whilst Saudi Arabia have said they will respond with ‘necessary measures‘.

A few weeks before the oil refinery attacks, the British flagged tanker ‘Stena Impero‘ was seized in the Strait of Hormuz following the capture of an Iranian tanker off Gibraltar.  This stretch of sea connects the gulf with the Arabian sea, and is where a fifth of the world’s oil passed through in 2018 (estimated at 21 million barrels a day). For this reason it is one of the most important shipping routes. Earlier this year Iran threatened to close the Strait of Hormuz if they were ever prevented from using it.

Tension with Iran has been gradually percolating since Trump entered the White House, and was solidified back in May 2018 when he abandoned the Iran nuclear deal that was signed between the U.S. and Iran in 2015.

If the attacks in Saudi Arabia lead to further outbreaks, the shutting down of one of the world’s most prolific waterways for oil is a strong possibility. This would have an immediate impact on the price of oil globally, and if prolonged on global inflation.

With the U.S. economy consumed by tens of trillions in debt and fundamental economic data showing increasing signs of a downturn, a conflict with Iran in the short to medium term could be a catalyst for the U.S. falling into recession.

Since central banks began to tighten monetary policy – in particular the Federal Reserve with its balance sheet reduction scheme – we have witnessed a perpetual rise in political conflict. The false recovery narrative that grew out of the 2008 crisis, coupled with the re-affirming of inflation targets that were abandoned pre Brexit and Trump, presented central banks with a window to tighten financial conditions. If the past is any guide, then they will once again allow multiple crisis scenarios to reach a tipping point before contemplating some form of renewed stimulus.

Inducing crises is how globalists have historically gained greater power over the financial system. The question is how they will respond to what I believe will prove to be an inflationary recession / depression. The mandate for 2% inflation remains prominent in their communications. If that persists then do not count on central banks to support markets indefinitely.

7. OIL ISSUES

There is a huge glut of natural gas as the price drops below 2.00.  This is due to the huge production increase with our shale boys.  This will crush them as their costs exceed what they are receiving

(zerohedge)

Too Much Too Fast” Gas Glut Crushes Shale Drillers

Authored by Nick Cunningham via OilPrice.com,

Appalachian shale drillers are getting squeezed by low prices, and a supply glut may mean that there is little prospect of a pricing rebound anytime soon.

Earlier this month, IHS Markit put out a press release entitled, “U.S. Natural Gas Price Will Fall to Levels Not Seen Since 1970s.” The firm said that persistent oversupply from the Marcellus would be “reinforced” by a surge in associated gas production from the Permian basin. That could keep average natural gas prices below $2/MMBtu next year, which would nominally be the lowest since 1995, but in real terms it would be the lowest since the 1970s.

The market is set to see falling prices despite structural increases in demand from new gas-fired power plants and LNG export facilities. IHS noted that U.S. demand has climbed by 14 billion cubic feet per day (Bcf/d) in annual consumption since 2017, but supply has expanded by even more than that amount since the start of 2018.

“It is simply too much too fast,” Sam Andrus, executive director of IHS Markit, said in a statement.

“Drillers are now able to increase supply faster than domestic or global markets can consume it. Before market forces can correct the imbalance, here comes a fresh surge of supply from somewhere else.”

The bust in gas prices create significant dangers for gas-focused shale companies. “With the news from IHS Markit that natural gas prices in the United States will drop below $2 MMBtu in 2020 and remain low through at least 2024, if not longer, heads must be exploding in the board rooms of oil and gas producers throughout the U.S. and Canada,” Tom Sanzillo and Kathy Kipple wrote in a commentary for the Institute for Energy Economics and Financial Analysis (IEEFA).

The IEEFA analysts said that smaller shale gas E&Ps, which account for roughly 30 percent of production, “are likely to continue to fail.”

The shale gas industry has been eager to build more pipelines to move gas out of the Appalachian region and the Permian basin so that gas can be exported overseas. Many analysts see long-term growth for gas. Through 2040, the market for LNG could double in size to over 1000 billion cubic meters (bcm), “a growth rate eclipsed only by renewables,” according to Wood Mackenzie.

However, the global market for LNG is also oversupplied, and could remain that way for the next few years, with prices in various markets plumbing new lows. Traders expect LNG prices in Asia to drop to their lowest in a decade by the end of this year, according to Reuters. Sources don’t see Asian spot LNG prices exceeding $6/MMBtu for December delivery, a low for the time of year not seen since 2010.

Oil E&Ps have their own financial problems, to be sure, but stubbornly low natural gas prices could create particular trouble for the “gassy” drillers. In just the last month, Antero Resources, Gulfport Energy and Range Resources were all downgraded by S&P Global Ratings, “while the bond markets have begun to price in more default risk for the less-than-investment-grade gas drillers,” according to S&P Global Platts.

Even EQT, the largest gas producer in the entire country, saw its outlook cut to negative over the summer. If EQT were to see its credit rating cut to junk, it could “rock” a broader class of E&P companies that are already under financial pressure, S&P said.

The ripple effects could also be felt in associated sectors. More than a few pipeline companies “have substantial exposure to a group of drillers with declining credit quality and low-growth plans for the future,” according to S&P Global Platts, citing an analysis from S&P Global Market Intelligence. Pipeline companies are in danger of a “coming wave of negotiations for lower transportation rates” from drillers, and that risk is not factored into their earnings forecasts, S&P said.

Antero Resources recently idled a water treatment facility in West Virginia that handles fracking wastewater because of the downturn. The $300 million facility came online only two years ago.

The petrochemical boom could also feel the impact of a rickety shale gas industry. “The planned expansion of refineries, crackers and plastic production in the Ohio Valley will be increasingly turbulent,” IEEFA analysts wrote. “A steady, stable source of low-priced natural gas was central to the investment decisions of companies like Shell, which is investing billions to build a cracker plant. Petrochemical expansion plans are at risk. They were based on weak partnerships with the fracking industry, an industry that does not have a viable business model.”

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.0988 DOWN .0026 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL RED

 

 

USA/JAPAN YEN 107.37 UP 0.074 (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 1.2394   DOWN   0.0091  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3267 UP .0027 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  WEDNESDAY morning in Europe, the Euro FELL BY 26 basis points, trading now ABOVE the important 1.08 level FALLING to 1.0988 Last night Shanghai COMPOSITE CLOSED DOWN 29.91 POINTS OR 1.0% 

 

//Hang Sang CLOSED DOWN 335.69 POINTS OR 1/28%

/AUSTRALIA CLOSED DOWN 0,61%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 335.68 POINTS OR 1.28%

 

 

/SHANGHAI CLOSED DOWN 29.91 POINTS OR 1.00%

 

Australia BOURSE CLOSED DOWN. 61% 

 

 

Nikkei (Japan) CLOSED DOWN 78.69  POINTS OR 0.36%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1530.00

silver:$18.56-

Early WEDNESDAY morning USA 10 year bond yield: 1.63% !!! DOWN 1 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.09 DOWN 1  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 98.64 DOWN 30 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.16% UP 2 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.26%  DOWN 2   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.13%//UP 5 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:0.84 UP 4 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 51 points higher than Spain.

 

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

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.42% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.0946  DOWN     .0068 or 68 basis points

USA/Japan: 107.80 UP .627 OR YEN DOWN 63  basis points/

Great Britain/USA 1.2358 DOWN .0126 POUND DOWN 126  BASIS POINTS)

Canadian dollar DOWN 33 basis points to 1.3274

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 7.1315    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.1293  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.6897 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.26%

 

Your closing 10 yr US bond yield UP 6 IN basis points from TUESDAY at 1.70 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.15 UP 5 in basis points on the day

Your closing USA dollar index, 98.99 UP 66  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 6.24  0.16%

German Dax :  CLOSED DOWN 72.97 POINTS OR .59%

 

Paris Cac CLOSED DOWN 44.53 POINTS 0.79%

Spain IBEX CLOSED DOWN 32.90 POINTS or 0.36%

Italian MIB: CLOSED DOWN 112.79 POINTS OR 0.51%

 

 

 

 

 

WTI Oil price; 56.20 12:00  PM  EST

Brent Oil: 61.90 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    64.22  THE CROSS HIGHER BY 0.25 RUBLES/DOLLAR (RUBLE LOWER BY 25 BASIS PTS)

 

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

END

 

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

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

WTI CRUDE OIL PRICE 4:30 PM :  56.54//

 

 

BRENT :  62.40

USA 10 YR BOND YIELD: … 1.73…up 8 basis pts.

 

 

 

USA 30 YR BOND YIELD: 2.17..up 7 basis pts.

 

 

 

 

 

EURO/USA 1.0945 ( down 69   BASIS POINTS)

USA/JAPANESE YEN:107.76 UP .596 (YEN DOWN 60 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 99.00 UP 67 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.2357 DOWN 127  POINTS

 

the Turkish lira close: 5.6787

 

 

the Russian rouble 64.17   DOWN 0.19 Roubles against the uSA dollar.( DOWN 19 BASIS POINTS)

Canadian dollar:  1.3259 DOWN 19 BASIS pts

USA/CHINESE YUAN (CNY) :  7.1315  (ONSHORE)/

 

 

USA/CHINESE YUAN(CNH): 7.1271 (OFFSHORE)

 

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

 

The Dow closed UP 163.69 POINTS OR 0.61%

 

NASDAQ closed UP 83.76 POINTS OR 1.05%

 


VOLATILITY INDEX:  15.75 CLOSED DOWN 1.30

LIBOR 3 MONTH DURATION: 2.13%//

 

 

USA trading today in Graph Form

Stocks & Dollar Surge On Trump Transcript, Trade Talk; Bonds, Bitcoin, & Bullion Battered

Between Trump’s Ukraine transcript turmoil and numerous optimistic Trump trade-talks headlines sprinkled throughout the day, US stocks and the dollar were bid almost non-stop and as the flight to the dollar escalated, safe-havens were dumped.

Stocks up, Bonds down, Dollar up – all of which can only mean one thing:

But – relatively speaking – stocks lagged…

 

Source: Bloomberg

These were the headlines that US equity algos loved the most today…

  • 1000ET *TRUMP ADMIN. RELEASES ROUGH TRANSCRIPT OF CALL WITH UKRAINE
  • 1100ET *TRUMP SAYS CHINA DEAL COULD HAPPEN SOONER THAN YOU THINK
  • 1300ET *TRUMP ON CHINA DEAL: WE ARE GETTING CLOSER AND CLOSER
  • 1435ET *ZELENSKIY SAYS NOBODY PUSHED ME

And thus all the US majors rallied notably on the day…

But despite the big surge, late-day weakness left only The Dow is green on the week…

On a closing basis, the S&P 500 had traded in a 0.59% range over the last 9 sessions, the tightest such range in just over a year.

Treasury yields soared as bond safe havens were dumped…

Source: Bloomberg

The Dollar exploded higher today (biggest daily jump since August 2018)…

Source: Bloomberg

Bitcoin extended losses after yesterday’s carnage…

Source: Bloomberg

And gold (and silver) were clubbed like baby seals today…

Source: Bloomberg

Under the hood, The Fed’s POMO was way oversubscribed and decided to increase its liquidity going forward – does that sound healthy?

In equities, momo was battered, reversing yesterday’s gains…

Source: Bloomberg

Chinese stocks gave up yesterday’s gains overnight…

Source: Bloomberg

European stocks were also down today – unable to use the US gains to get back to even…

Source: Bloomberg

30Y yields pushed back higher on the week…

Source: Bloomberg

Carnage in crypto this week…

Source: Bloomberg

Copper managed an odd gain today – back into the green for the week -as PMs and crude ended red…

Source: Bloomberg

Bloomberg’s Justina Vasquez notes that investors piled into gold, pushing the tally of outstanding futures contracts to a record Tuesday before renewed optimism on trade sent prices tumbling the next day for the first time in four sessions. Money will likely return to the precious metal as the impeachment inquiry of President Donald Trump adds another layer of uncertainty to a long list of concerns that have boosted haven demand for bullion, according to George Gero, a managing director at RBC Wealth Management in New York.

Source: Bloomberg

WTI tested down to a $55 handle intraday before bouncing but has erased almost 90% of the Saudi spike…

Source: Bloomberg

Finally, we note that despite the equity market exuberance today, the odds of a Trump impeachment before the end of his first term surged…

Source: PredictIt

And don’t forget, Greed is back bitches!!

Source: CNN

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

MARKET TRADING//USA

a)Market trading/this morning/USA

Stocks, Dollar, & Bond Yields Surge After Trump China Trade Comments

Ever mindful of what the market is doing, President Trump reminded reporters that the market “went up very substantially after the details [on Ukraine] were read,” and just to make sure it gets a bump, he throws out that “a China trade deal could happen sooner than you think.”

The algos loved that…

And the dollar is surging…

Source: Bloomberg

Along with bond yields…

Source: Bloomberg

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

A slight rise in the 30 yr rate was all that was needed to stop the refi business as the boom in housing crashes
(zerohedge)

Refi Boom Crashes To An End On Modest Rate Rise

A very modest 10bps rise in 30Y mortgage rates over the last few weeks has crushed the housing market’s refinance boom, and hit the new home application side too.

Overall mortgage applications tumbled 10.1% last week – the most since the Xmas holiday week in 2016. This is actually the biggest drop for this time of year in at least 10 years.

The drop was led by a 15.2% plunge in refinance applications, with new purchase applications also down 3.3%.

Source: Bloomberg

Mortgage rates are up a mere 10bps – and remain near 3-year lows – but still the marginal mortgage applicant has backed away dramatically…

Source: Bloomberg

But that move has killed the entire refinance boom…

Source: Bloomberg

All of which should make housing market enthusiasts more than a little worried, as if the marginal mortgage applicant is this sensitive to rates – near record lows – then what happens if we see an upturn in growth (which is apparently priced into homebuilder stocks) and rates really rise?

end
Although the refis are finished it did not stop new home buyers from buying homes with lower mortgage rates
(zerohedge)

New Home Sales Surge In August (As Rates Tumbled)

 

After July’s collapse, August new home sales were expected to rebound (like existing homes – biggest jump in two years) and surprised to the upside (rising 7.1% MoM against expectations of a 3.8% rebound). However, the huge 12.8

 

% drop in July was revised up to a -8.6% MoM drop.

 

Source: Bloomberg

Purchases of new homes increased in the South and West.

The supply of homes at the current sales rate dropped to 5.5 months, from 5.9 months in July.

The report showed more expensive homes, those priced $400,000 and up, represented a larger share of unadjusted sales in August. The share of new houses with asking prices below $400,000 eased.

The median sales price increased 2.2% from a year earlier to $328,400.

Of course this data is from before rates started to turn higher and mortgage applications tumbled…

 

Source: Bloomberg

So what happens next?

Source: Bloomberg

Get back to work Mr.Powell.

iii) Important USA Economic Stories

Your big story of the day. Each day we see record amounts of money needed in repo terms in order to unclog the money markets.  Also remember we are coming close to the quarter end where the crooks put lipstick on their crooked balance sheets to make things looks better than it really is.  Today a massive 92 billion dollars was needed and only 75 billion offered so again some could not get badly needed cash.

(zerohedge)

Dollar Liquidity Crisis Accelerates As Month-End Nears, Record $92 Billion Demand

As month-end looms, demand for dollar liquidity is accelerating dramatically with today’s Fed operation oversubscribed – with around $92 billion of demand for The Fed’s $75 billion offering…

Source: NYFed

This is the heaviest demand yet for this new Fed liquidity spigot…

As we noted previously, some banks appear to have been simply waiting to get closer to the quarter end before tipping their cards: after all, just like the Discount Window, the repo operation has become the modern “stigmatizing” equivalent, and if reporters or clients get a whiff that a bank is in a dire liquidity state, the consequences could be dramatic.

Never mind though, it’s probably all transitory.

 end
Philip Morris and Altria  end the merger talks. The CEO of Juul quits
(zerohedge)

Vape-orized: Philip Morris, Altria End Merger Talks As Juul CEO Quits

Talk about wealth vape-orizing.

The fallout from the vaping scandal, which has seen an unprecedented crackdown against a practice which until recently was seen as safer than conventional smoking and is now getting banned virtually everywhere following a streak of unexplained death, continued on Wednesday morning when tobacco giants Philip Morris and Altria Group announced they have ended their merger discussions.

“After much deliberation, the companies have agreed to focus on launching IQOS in the U.S. as part of their mutual interest to achieve a smoke-free future,” Philip Morris Chief Executive Officer André Calantzopoulos said Wednesday in a statement, referring to his company’s heat-not-burn device.

Shares of Philip Morris jumped more than 5% in early trading, while Altria rose about 1%.

Separately, we were almost right in our sarcastic comment from yesterday, the the criminal probe at Juul and sudden crackdown will cost the Altria CEO his job over last year’s $13 billion invesrment in Juul.

zerohedge@zerohedge

JUUL RESTRUCTURING WILL ELIMINATE SOME JOBS: DJ

That of Altria’s CEO?

Instead, moments ago we learned that the Juul CEO, the aptly named Kevin Burns will quit first, and Altria Chief Strategy and Growth Officer K.C. Crosthwaite stepped down from the company to become the new CEO of Juul Inc.

The news follow a Tuesday report that Juul Labs would restructure and cut back its staff as state, federal and international health regulators pull its fruit flavored pods off store shelves as U.S. amid a public health crisis; as part of the overhaul, the company is eliminating some of its 3,900 employees, slowing hiring and reviewing its current job postings, according to a person familiar with the matter, who declined to be identified because the decision hasn’t been made public.

U.S. prosecutors in California have reportedly opened a criminal probe into the maker of the popular e-cigarette. Juul’s been criticized by federal health officials and lawmakers for fueling a teen vaping “epidemic.” Its advertising practices have, in particular, been scrutinized for using young models and bright colors health officials say appealed to kids.

END

 

end

iv) Swamp commentaries)

An absolute joke: the IG states that the whistleblower has bias in favour of a rival candidate, The whistleblower retains the same lawyer for the Clintons and Schumer

(zerohedge)

IG Says Trump-Ukraine Whistleblower Had ‘Bias’ In Favor Of ‘Rival Candidate’; Retains Clinton, Schumer Attorney

The Trump administration is set to release a document from the intelligence community inspector general which concluded that the whistleblower behind the explosive allegations against President Trump had ‘political bias’ in favor of ‘a rival candidate’ for US president, according to Fox News, citing a senior Trump administration official.

What’s more, the whistleblower has retained attorney Andrew Bakaj – who “interned for Schumer in the spring of 2001 and for Clinton in the fall of the same year,” per The Federalist.

Donald J. Trump

@realDonaldTrump

“Attorney For Anti-Trump ‘Whistleblower’ Worked For Hillary Clinton, Chuck Schumer” https://thefederalist.com/2019/09/24/attorney-for-anti-trump-whistleblower-worked-for-hillary-clinton-chuck-schumer/ 

Attorney For ‘Whistleblower’ Worked For Hillary Clinton, Chuck Schumer

Andrew Bakaj interned for Schuck Schumer in the spring of 2001 and for Hillary Clinton in the fall of the same year, according to Bakaj’s LinkedIn page.

thefederalist.com

Meanwhile, the White House has also been working as fast as possible to release the whistleblower’s complaint involving phone conversations with Ukrainian President Volodymyr Zelensky to Congress, “as long as it’s legally possible.”

The news came just hours after House Speaker Nancy Pelosi initiated a formal impeachment inquiry by alleging that the administration was hiding the complaint.

The senior administration official told Fox News that the White House had nothing to hide, that there has been no wrongdoing, and that the White House’s general position has been that it will make everything possible available to Congress or the public regarding Trump’s conversations with Ukrainian President Volodymyr Zelensky and the complaint to the intelligence community’s inspector general.

source familiar with the matter told Fox News this week that the whistleblower had no firsthand knowledge of Trump’s July call with Zelensky. Trump vowed earlier Tuesday to release a “complete” transcript of the call by Wednesday. –Fox News

On Friday, Trump described the whistleblower as ‘partisan,’ and that he had a “totally appropriate conversation” with Zelensky – warning the press that they’re making a giant mistake. 

“You know the press has had a very bad week with Justice Kavanaugh and all those ridiculous charges, and all of the mistakes made at the New York Times and other places,” said Trum, adding: “You’ve had a very bad week, and this will be better than all of ’em, this is another one. So keep playing it out because you’re gonna look really bad when it falls, and I guess I’m about 22 and 0 and I’ll keep it that way.

“…keep asking questions and building it up as big as possible so you can have a bigger downfall.”

According to the senior Trump admin official there are a “few words” in the transcript which may raise eyebrows, however it is nowhere near the quid pro quo, pressure tactics or threats that Democrats and the MSM have suggested.

Throwing a wrench in the gears of ‘justice’

House Speaker Nancy Pelosi on Tuesday went against her better judgement and launched a formal impeachment inquiry into President Trump – specifically charging that the administration violated the law by refusing to turn over the whistleblower complaint.

“Today, I’m announcing the House of Representatives is moving forward with an official impeachment inquiry. I’m directing our six committees to proceed with their investigations under that umbrella … The president must be held accountable,” Pelosi said in a press conference.

Other prominent Democrats also seemingly said Trump should be impeached no matter what.

“The president has committed several impeachable offenses,” Rep. Alexandria Ocasio-Cortez, D-N.Y., told reporters after Pelosi’s remarks on impeachment. In another indication that Democrats were apparently hedging their bets on the Ukraine matter, Ocasio-Cortez said alleged Emoluments Clause violations by the president could be included in prospective articles of impeachment.

Republicans said the move would prove to be a major political mistake.

“It is a colossal error,” Texas Republican Sen. John Cornyn told Fox News just prior to Pelosi’s comments. “And, I’m kind of surprised that Speaker Pelosi, as shrewd as she is, would let it get to this point.”

Swing district Rep. Mikie Sherrill, D-N.J., acknowledged to Fox News that supporting the impeachment inquiry “could” affect her electorally, but she maintained that Trump voters in her district “understand,” and that Trump crossed a red line. –Fox News

While taking great pains not to discuss Biden’s alleged malfeasance in Ukraine, Democrats have also latched onto the Trump administration’s decision to pause $391 million in military aid to Ukraine about a week before the call between the two world leaders – suggesting that Trump threatened to withhold it unless they investigated claims that Biden abused his position as US Vice President to benefit his son, Hunter, who sat on the board of a Ukrainian gas company which was under investigation. The elder Biden openly bragged about threatening to withhold $1 billion in US loan guarantees unless then-President Petro Poroshenko fired his head prosecutor, General Viktor Shokin.

end

Rudy G., lays out a pattern of corruption of the Bidens.  He claims that China bought Biden

a must read and view

(zerohedge)

Rudy Drops New Bombs: Slams Obama Cabinet ‘Pattern Of Corruption’; Claims China ‘Bought’ Biden

Trump attorney Rudy Giuliani has been on quite the tear of late – slamming former Vice President Joe Biden and his son Hunter’s financial dealings around the world, while House Democrats move to impeach President Trump over a phone call with the Ukrainian president about the Bidens.

Wednesday morning was no exception, as Giuliani burned the midnight oil on Twitter – tossing bombs at Biden and the Obama administration. Hours later he appeared on Fox News to discuss ‘Ukrainegate.’

We know corrupt Ukrainian oligarch laundered $3 million to the Biden Family,” tweeted Giuliani, adding “up to $3 to $4m more was laundered to Biden. So release all the financial records of all businesses involving Biden, Kerry’s stepson and notorious mobster Whitey Bulger’s nephew” – referring to an investigation by journalist Peter Schweizer which uncovered what appears to be a massive pay-for-play operation in China.

Rudy Giuliani

@RudyGiuliani

We know corrupt Ukrainian oligarch laundered $3 million to the Biden Family. But $3 to $4m more was laundered to Biden. So release all the financial records of all businesses involving Biden, Kerry’s stepson and notorious mobster Whitey Bulger’s nephew.

Rudy also slammed a “pattern of corruption involving high level members of the Obama cabinet” that the Democrat party is “covering up.”

The multi-million and billion dollar pay-for-play is mind boggling. Biden Family sale of office to Ukraine was not the only one or the most egregious. Slimy Joe is not alone.”

Rudy Giuliani

@RudyGiuliani

Democrat party is covering up a pattern of corruption involving high level members of the Obama cabinet. The multi-million and billion dollar pay-for-play is mind boggling. Biden Family sale of office to Ukraine was not the only one or the most egregious. Slimy Joe is not alone.

Giuliani then called for Biden to “release records to see if he flew Hunter to China in Dec. 2013 on AF 2 to facilitate Hunter’s sale of his office to China for a total of $1.5 billion.” Rudy then claimed that China has bought other politicians.

“Is there any doubt that China paid it to compromise VP. But they bought another pol as well. Guess?”

Rudy Giuliani

@RudyGiuliani

Biden should agree to release records to see if he flew Hunter to China in Dec. 2013 on AF 2 to facilitate Hunter’s sale of his office to China for a total of $1.5 billion. Is there any doubt that China paid it to compromise VP. But they bought another pol as well. Guess?

Hours after his tweets, Giuliani appeared on Fox & Friends, where he said the transcript of a call between President Trump and Ukrainian President Volodymyr Zelensky had been “read to him.” 

Aaron Rupar

@atrupar

Here is Rudy Giuliani, who is not a government official, saying on Fox & Friends that the transcript of Trump’s call to president of Ukraine — one that’s at the heart of a whistleblower complaint — was read to him. Congress still hasn’t been able to see it.

Embedded video

He also called out the Obama administration for being “in the tank,” asking “Why didn’t Obama say – when he saw the first Ukraine article that said there was a serious conflict of interest. Why didn’t Obama call his Vice President and say ‘Joe, you can’t give this kid a job … Joe, did you get your kid a job with the crookedest oligarch in Ukraine? Just four months after we had to toss him out of the military for drug addiction? Do you know how that’s gonna look Joe?

end
Trump releases the Ukraine transcript and it shows Trump asking the Ukraines to look into the Biden affair
(zerohedge)

Trump Admin Releases Ukraine Transcript

The Trump administration has released a White House transcript of a phone call between President Trump and Ukrainian President Volodymyr Zelensky at the heart of a whistleblower complaint.

Among other things, the transcript shows Trump discussing former Vice President Joe Biden and his son Hunter.

Here’s the ‘pressure’ Trump put on Zelensky: 

“The other thing, There’s a lot of talk about Biden’s son, that Biden stopped the prosecution and a lot of people want to find out about that so whatever you can do with the Attorney General would be great. Biden went around bragging that he stopped the prosecution so if you can look into it… It sounds horrible to me.” 

Earlier in the conversation, Trump says: “I would like you to do us a favor though because our country has been through a lot and Ukraine knows a lot about it. I would like you to find out what happened with this whole situation with Ukraine, they say Crowdstrike … I guess you have one of your wealthy people… The server, they say Ukraine has it There are a lot of things that went on, the whole situation I think you’re surrounding yourself with some of the same people. I would like to have the Attorney General call you or your people and I would like you to get to the bottom of it. As you saw yesterday, that whole nonsense ended with a very poor performance by a man named Robert Mueller, an incompetent performance, but they say a lot of it started with Ukraine. Whatever you can do, it’s very important that you do it if that’s possible.

Read below:

Joshua Benton

@jbenton

Either the @WSJ report from Saturday that Trump specifically pressured re: Biden 8 times is incorrect or this transcript-style summary of the call elides 7 of the 8 times https://www.whitehouse.gov/wp-content/uploads/2019/09/Unclassified09.2019.pdf https://www.wsj.com/articles/trump-defends-conversation-with-ukraine-leader-11568993176 

Trump Repeatedly Pressed Ukraine President to Investigate Biden’s Son

WSJ News Exclusive | Trump Repeatedly Pressed Ukraine President to Investigate Biden’s Son

President Trump in a July phone call repeatedly pressured the president of Ukraine to investigate Joe Biden’s son, urging Volodymyr Zelensky about eight times to work with Rudy Giuliani on a probe…

wsj.com

Meanwhile, the left is already taking issue with calling this a ‘transcript,’ as is it is a “memorandum” – which would suggest it’s not a verbatim account of the conversation.

Kathleen Carroll

@kathleencarrll

Dear news colleagues: The memo just released is a summary from note takers. It cautions that it is NOT a verbatim transcript of the conversation. So why do stories call it a “transcript”? Accuracy requires a better description.

Merriam-Webster

@MerriamWebster

‘Transcript’: 🎙 a typed copy of dictated or recorded material

‘Memorandum’: 📝 an informal report or message

Regardless, Trump’s odds of impeachment by year-end just took a nosedive over the past 24 hours

end
The Wall Street Journal shreds the Democrat take out of a President after the release of the memorandum
(Kim Strassel/WSJ)

WSJ Journo Shreds ‘Attempt To Take Out A President’ After Transcript Release

Following the release of a transcript betwen President Trump and Ukrainian President Volodymyr Zelensky – which does not reval a ‘quid pro quo’ or other attempts to pressure Ukraine into investigating Trump’s 2020 Democratic rival Joe Biden, the Wall Street Journal‘s Kimberly Strassel took to Twitter to dissect yet ‘another internal attempt to take out a president.’

Presented without commentary:

Kimberley Strassel

@KimStrassel

1) Having read DOJ’s Trump-Ukraine release, here’s the real story: This is another internal attempt to take out a president, on the basis of another non-smoking-gun.

Kimberley Strassel

@KimStrassel

2)As to call transcript itself: Trump’s actual “favor” is that Ukraine look backward, to what happened in the 2016 election. This is a legitimate ask, since election meddling looks to have come from both Russia and Ukraine.

Kimberley Strassel

@KimStrassel

3)(Indeed, this is a big enough issue that we find out this morning that U.S. Attorney John Durham is looking at what role the Ukraine played in the FBI investigation.)

Kimberley Strassel

@KimStrassel

4)It is actually Zelensky who brings up Rudy Giuliani—saying they can’t wait to “meet him.” And it is Zelensky who references “that investigation,” as he goes on to promise that “all investigations will be done openly and candidly.”

Kimberley Strassel

@KimStrassel

5)Trump says “good” and expresses worries that a “good” prosecutor was “shut down.” Mentions “Biden’s son” and that Biden bragged he “stopped the prosecution.” Ends that bit with “It sounds horrible to me.”

Kimberley Strassel

@KimStrassel

6)Trump’s several references to Giuliani are mostly to say what a great guy he is. He says he will have Giuliani and AG Barr call. He asks Zelensky to speak/work with both.

Kimberley Strassel

@KimStrassel

7)And, never mind, because: DOJ in statement says the President has not spoken to AG about investigating Biden and has not asked the AG to contact the Ukraine. Also, Barr has not communicated with Ukraine—“on this or any subject.”

Kimberley Strassel

@KimStrassel

8)Meanwhile, the IG back in August referred this to DOJ as potential violation of campaign finance law, based on whistleblower complaint. Criminal Division evaluated and determined no violation: “All relevant components of the Department agreed with this legal conclusion.”

Kimberley Strassel

@KimStrassel

9) Whistleblower? Look at this nugget, referenced in the OLC opinion. The IG’s review found “some indicia of an arguable political bias on the part of the Complainant in favor of a rival political candidate.”

Kimberley Strassel

@KimStrassel

10)Media got all this so wrong. And Democrats look all the more partisan and radical to have moved toward impeachment.

end

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

The King Report September 25, 2019 Issue 6099                                                                               Independent View of the News

The Fed’s term and overnight repo operation were oversubscribed on Tuesday.  Dealers submitted $62B of securities for the 14-week $30B repo and $80.2B for the $75 O/N repo.

ESZs gyrated in a wide range from the opening on Monday night until the eMini S&P 500 Index futures broke down minutes before the end of the first hour of trading.

This reason for the early decline was Trump’s comments on China at the UN General Assembly.

ABC News @ABC: Pres. Trump: “In 2001, China was admitted to the World Trade Organization. Our leaders then argued this decision would compel China to liberalize their economy and strengthen their protections. “This theory has been tested and proven completely wrong.”  https://abcn.ws/2mTy8mp

      “We’re carefully monitoring the situation in Hong Kong,” Pres. Trump says. “The world fully expects that the Chinese government will honor its binding treaty… How China chooses to handle the situation will say a great deal about its role in the world in the future.”

@CBSNews: President Trump on China negotiations: “I will not accept a bad deal for the American people.”    https://cbsn.ws/2mSeS8Q

Bloomberg @business: Trump at UNGA says the World Trade Organization needs “drastic change,” and adds China’s “unfair” trade practices must be stopped. “We are seeking justice,” he says.

Trump hailed nationalism and condemned globalism at UN General Assembly on Tuesday.

Trump: “Globalism exerted a religious pull over past leaders causing them to ignore their own national interests. But as far as America is concerned, those are over.”

    “Wise leaders always put the good of their own people and their own country first. The future does not belong to globalists. The future belongs to patriots.”

Rush Limbaugh: This speech Trump that gave today is the reason they hate this guy – He poses the single greatest threat to the establishment’s world order that there has ever been, and he hit them between the eyes today. He hit everybody.”

The Trump decline stalled at midday, a modest rally appeared until reports said Pelosi would make an announcement today on impeaching Trump.  ESZs and stocks tumbled on the report.

@ABC: Rep. John Lewis: “I truly believe the time to begin impeachment proceedings against this president has come. “To delay or to do otherwise would betray the foundation of our democracy.” http://abcn.ws/2mrJKfX

@GarrettVentry: Pelosi has no choice but to support impeachment because of her caucus — however polling shows it’s pretty much political suicide for Democrats to move forward with impeaching the President [Due to AOC and other leftists’ surprise victories in Dem primaries, Old Guard Dems fear losing their seats in a primary to younger leftists.]

Dow drops 200 points as Democrats talk Trump impeachment

https://www.cnbc.com/2019/09/24/stock-market-us-china-trade-talks-in-focus-on-wall-street.html

@VicToensing: Frightening. Dems want to impeach  @realDonaldTrump by relying solely on UNKNOWN INFO from an ANONYMOUS source who based the info on HEARSAY.  Do you ever want the Dems to be in charge of our Department of Justice?  Too bad they control House.

Pelosi Plans Formal Impeachment Inquiry of Trump

Faced with new allegations against President Trump and administration stonewalling, Democrats have ended months of caution…

https://www.nytimes.com/2019/09/24/us/politics/democrats-impeachment-trump.html?smid=tw-nytimes&smtyp=cur

Joe Biden will back impeaching Trump if the White House refuses to comply with congressional demands for information about his interactions with Ukraine’s president   http://bloom.bg/2kUSlro

@ArthurSchwartz: Biden Refuses to Answer, Walks away from Questions about Corruption in Ukraine

https://twitter.com/ArthurSchwartz/status/1176581411970736128

As long as you have banana republic politics, you need a banana republic central bank

@realDonaldTrump: I am currently at the United Nations representing our Country, but have authorized the release tomorrow of the complete, fully declassified and unredacted transcript of my phone conversation with President Zelensky of Ukraine.  You will see it was a very friendly and totally appropriate call. No pressure and, unlike Joe Biden and his son, NO quid pro quo! This is nothing more than a continuation of the Greatest and most Destructive Witch Hunt of all time!

@RudyGiuliani: Day off from Biden. Focus on Iran. Tomorrow we will resume with the videotapes and video documentary evidence, establishing very serious suspected criminality in Ukraine. Then we’ll move on to China, which is sadly and tragically, worse.

@debostic: ImpeachTrump wants a civil war. The scary part is that they may well get one.

@TomFitton: @JudicialWatch fought the transcript battle before and @RealDonaldTrump

admin withheld Obama call info with foreign leaders on Benghazi found in Clinton emails.http://politi.co/2hdQ5WZ

@zerohedge: Why are stocks higher? BofA explains: Cumulative buybacks YTD are +20% YoY, and rolling 4-wk avg. buybacks are +122% YoY (the highest of any point this year).

Trump questions Mnuchin over request Chinese delay U.S. farm trip

“Why was that our request, just out of curiosity?” Trump asked.  Mnuchin explained again that the U.S. side “didn’t want confusion around the trade issues.”…

https://www.reuters.com/article/us-usa-trade-china/trump-questions-mnuchin-over-request-chinese-delay-us-farm-trip-idUSKBN1W82KV

 

Cramer: Mnuchin is going to be in trouble for making Trump look bad over China’s canceled farm tour – Mnuchin clearly took the president off guard, at a Monday meeting at the United Nations, saying that U.S. officials asked the Chinese delegation to call off their tour of U.S. farms — not the other way around…  https://www.cnbc.com/2019/09/24/cramer-mnuchin-is-going-to-be-trouble-for-making-trump-look-bad.html

 

Ex-intel operative @Kevin_Shipp: This is VERY SERIOUS. Hidden behind the deceptive Wall Street speak is the Federal Reserve creating billions of fake money then, during the night, pumping the money to the World’s largest banks to keep them afloat. [Is the funding squeeze a foreign dynamic?]

 

After the close Pelosi announced: “Today I am announcing the House of Representatives is moving forward with an official impeachment inquiryThe Trump administration’s actions undermine both our national security and our intelligence.”

 

@RealSaavedra: Nancy Pelosi suggests that Democrats have to impeach Trump because they desperately want to prevent him from getting re-elected: “He can’t win, that is very serious”

https://twitter.com/RealSaavedra/status/1176574076229279744

 

@realDonaldTrump: Such an important day at the United Nations, so much work and so much success, and the Democrats purposely had to ruin and demean it with more breaking news Witch Hunt garbage. So bad for our Country!  Pelosi, Nadler, Schiff and, of course, Maxine Waters! Can you believe this?

    Secretary of State Pompeo received permission from Ukraine Government to release the transcript of the telephone call I had with their President. They don’t know either what the big deal is. A total Witch Hunt Scam by the Democrats!

 

@RepDougCollins: Speaker Pelosi’s decree changes absolutely nothing. As I have been telling Chairman Nadler for weeks, merely claiming the House is conducting an impeachment inquiry doesn’t make it so. Until the full House votes to authorize an inquiry, nobody is conducting a formal inquiry.

 

@RepJeffDuncan: Dems have spent the last 3 years trying to overturn an election that didn’t go their way by spinning fairy tales of Russian collusion & claiming they had evidence of it. Did they? No. There was no collusion, no obstruction.  Now, in their continued efforts to remove @POTUS Trump from office, Dems are moving on to the next shiny object…

 

@RepMarkMeadows: So we are all clear what’s happening: House Democrats are supposedly beginning an impeachment inquiry, and building it on an anonymous secondhand complaint they haven’t seen… which describes a call transcript that they haven’t read. You can’t make it up.

“Terribly Divisive”: Tulsi Gabbard Refuses To Join Fellow Democrats’ Calls for Impeachment

“The hyperpartisanship is one of the main things driving our country apart,”…

https://www.zerohedge.com/political/terribly-divisive-tulsi-gabbard-refuses-join-fellow-democrats-calls-impeachment

Senate Judiciary Committee Chairman @LindseyGrahamSC: Interesting concept — impeach first, find facts later.  Sounds like the mainstream media – write story first, verify later.

Trump Ukraine Whistle-Blower is Represented by Deep State Lawyer [Former CIA official Andrew Bakaj] Who Worked for Hillary Clinton [and Chuck Schumer]

https://bigleaguepolitics.com/trump-ukraine-whistle-blower-is-represented-by-deep-state-lawyer-who-worked-for-hillary-clinton/

@brookefoxnews: #ImpeachmentInquiry will put House Judiciary, Intel, Oversight, Ways & Means, Financial Services& Foreign Relations Trump-focuses probes “under one umbrella,” per a Dem source. And according to a Democratic source, @RepAdamSchiff will have a “heavy role” in how the #ImpeachmentInquiry unfolds.

@RepAdamSchiff 10 Dec 2017: Here is what we know: The Russians offered help.  The Campaign accepted help.  The Russians gave help. The President made full use of that help.  That’s pretty damning.

White House to let Trump whistleblower testify, release complaint https://www.washingtontimes.com/news/2019/sep/24/white-house-let-trump-whistleblower-testify-report/

OAN’s @EmeraldRobinson: Why did Pelosi need to announce impeachment proceedings today?

Because the Ukraine story is so damaging to Joe Biden.

 

Today – Trump tied himself to the stock market years ago.  The president and his merry men have done everything they could to keep stocks buoyant because Team Trump thought it was a key dynamic in his re-election.  Their thought process appeared to be: If stocks stayed buoyant, the economy would follow.

 

But the impeachment changes the stock market dynamic.  Now, it is better for Trump if stocks tumble on impeachment concerns because it will kill Dems in 2020.  Besides the Fed and China, Trump now can blame a softening economy on Democrats.

 

So, will Team Trump halt their regular verbal intervention?  Will the mysterious buyers that manipulate ESZs in the overnight market and at key time frames now disappear?

 

Please recall that when Clinton was impeached, Team Clinton inundated the media with impassioned pleas that impeachment would hurt the stock market and the economy.

 

The US stock market could be anxious until the House votes on impeachment.  The odds are still low that the House will vote to impeach.  At last count, 157 Dem Reps are for impeachment.  There are 435 Reps.  31 Democrats in the House are from districts that Trump won in 2016.  Coastal and leftist Dems are forcing the impeachment.  Flyover America, except for a few big blue cities, wouldn’t be happy.

 

If impeachment were likely, stocks would crash.  Yesterday’s decline was mild.

 

ESZs are +6.50 at 20:00 ET.  Perhaps some traders realize there is no such thing as ‘a formal impeachment inquiry’, though that’s what the ignorant and corrupt MSM reported.  There has to be a House floor vote – and that will put a sizable chunk of Democrats in jeopardy for 2020.

 

The S&P 500 Index 50-day MA: 2950; 100-day MA: 2922; 150-day MA: 2897; 200-day MA: 2828

The DJIA 50-day MA: 26,600; 100-day MA: 26,365; 150-day MA: 26,265; 200-day MA: 25,771

 

S&P 500 Index support: 2955-60, 2940-45, 2930, 2922, 2914, 2900, 2880, 2870

Resistance: 2978-82, 2990, 3000, 3008, 3017-22, 3027, 3040, 3050

 

Expected economic data: Aug New Home Sales 656k; Chicago Fed Prez Evans 8:00 ET, KC Fed Prez George 10:00 ET, Fed Gov Brainard 10:00 ET, Dallas Fed Prez Kaplan 19:00 ET

 

S&P 500 Index – Trender trading model and MACD for key time frames

Monthly: Trender and MACD are positive – a close below 2502.93 triggers a sell signal

Weekly: Trender is positive;MACD is negative – a close below 2816.78 triggers a sell signal

Daily: Trender is positive;MACD is negative -a close below 2951.31 triggers a sell signal

Hourly: Trender and MACD are negative – a close above 2993.18 triggers a buy signal

 

Solomon: Let’s get real: Democrats were first to enlist Ukraine in US elections

Earlier this month… Sen. Chris Murphy (D-Conn.) delivered a pointed message to Ukraine’s new president, Volodymyr Zelensky… its U.S. aid but that could be jeopardized if the new president acquiesced to requests by President Trump’s lawyer, Rudy Giuliani, to investigate past corruption allegations involving Americans, including former Vice President Joe Biden’s family…

    January 2016, when the Obama White House unexpectedly invited Ukraine’s top prosecutors to Washington to discuss fighting corruption in the country… turned out to be more of a pretext for the Obama administration to pressure Ukraine’s prosecutors to drop an investigation into the Burisma Holdings gas company that employed Hunter Biden and to look for new evidence in a then-dormant criminal case against eventual Trump campaign chairman Paul Manafort, a GOP lobbyist

    Nazar Kholodnytsky, Ukraine’s chief anti-corruption prosecutor, told me that… he saw evidence in Ukraine of political meddling in the U.S. election. That’s when two top Ukrainian officials released secret evidence to the American media, smearing Manafort… Valeriy Chaly, the Ukrainian ambassador to the United States at the time, confirmed to me in a statement issued by his office that, in March 2016, a contractor for the Democratic National Committee (DNC) pressed his embassy to try to find any Russian dirt on Trump and Manafort that might reside in Ukraine’s intelligence files…

   Biden threatened to withhold $1 billion in crucial U.S. aid to Kiev if Poroshenko did not fire the country’s chief prosecutor… so Poroshenko obliged on March 29, 2016, and fired Prosecutor General Viktor Shokin… Nellie Ohr testified to Congress that some of the dirt she found on Trump during her 2016 election opposition research came from a Ukrainian parliament member…

https://thehill.com/opinion/campaign/462658-lets-get-real-democrats-were-first-to-enlist-ukraine-in-us-elections

 

NY Post editorial board: Why is most of the media circling the wagons to protect Hunter Biden?

Joe Biden’s boasts about getting that prosecutor axed also look clumsy. Then there’s Lutsenko’s claim that the Obama administration handed him a “do not prosecute” list in mid-2016, even as it was pushing Ukraine for dirt on Paul Manafort, Trump’s campaign manager…

https://nypost.com/2019/09/23/why-is-most-of-the-media-circling-the-wagons-to-protect-hunter-biden/

 

The impeachment talk eclipsed this important development:

 

Convictions tossed out against ex-Flynn business partner- The evidence against Bijan Kian was insufficient to sustain a conviction even though a jury convicted him at a trial earlier this year…

https://www.fourstateshomepage.com/news/politics/convictions-tossed-out-against-ex-flynn-business-partner/

 

Sanders Introduces Massive ‘Wealth Tax,’ Says ‘Billionaires Should Not Exist’ in America

“Billionaires should not exist… There should be no billionaires. We are going to tax their extreme wealth and invest in working people.”…

https://hannity.com/media-room/losing-it-sanders-introduces-massive-wealth-tax-says-billionaires-should-not-exist-in-america/

end

Let us close out today, with this offering courtesy of Greg Hunter and Egon Von Greyerz

(courtesy Greg Hunter/Von Greyerz)

Financial System Disappearing into Black Hole – Egon von Greyerz

By Greg Hunter On September 25, 2019

Financial and precious metals expert Egon von Greyerz (EvG) says the signs abound that we are nearing the end of this global fiat money experiment while central bankers are befuddled. EvG explains, “The central banks are panicking.  They don’t know what to do anymore. They are just starting to print money and with the euro on a daily basis. . . . Europe is starting QE again with $20 billion a month, but that’s nothing compared to what is coming. . . . The panic that started with central banks in the summer in late July and August was, to me, the first step towards total chaos in the world that we will be seeing in the months and years to come.  They (central bankers) see it clearly. They know the banking system is absolutely on the verge of collapse.  They know Deutsche Bank (DB) and CommerzBank, too, are down 95%.  If you show this chart to a child and ask where is that likely to go, it is likely to go to zero. DB, with their $50 trillion in derivatives, there is no chance they will survive. Of course, Germany and the ECB is panicking because that will affect the whole banking system worldwide.  This is why they have started to print money now because there is a massive liquidity problem, and that’s Germany, which is the best country in the EU from the point of economics.  Then you take Italy, Spain, France and Greece and they are in a real mess.  This is why the whole system is on the verge of disappearing into a black hole. . . . With the U.S., there is massive liquidity pressure there too.”

The massive amount of money printing to keep the fiat system afloat is just starting.  EvG contends, “This is just a practice round.  This is just more money at this point.  The balance sheet . . . of the Fed is going to go from around $4 trillion to $40 trillion.  It is going to go to $100 trillion before this is over. So, right now, they are just practicing a bit because they are going to put the pedal down to the bottom very soon. . . . There is no other way to save this system, it has gone too far. I am not a pessimist. I don’t want to see the end of the world, but you can see their actions. You can see that now there is absolutely no way out. The only thing they know is to print money. They have already reduced rates to zero or negative, which is a disaster in and of itself.”

EvG predicts, “All of these bubble assets that are based on just credit and credit expansion are going to implode measured in real terms, measured in gold. I expect the stock market and the property market to lose at least 95% or more in real terms. . . . The next up cycle for gold (and silver) has started. The next phase of this market has started, and it is going to go on for a long, long time. It is going to go to levels that will be hard to believe today. . . .The world cannot have solid growth until this debt has imploded . . . the transition will be terrible, but I don’t see any other solution to this. . . .The debt can only be wiped out by also wiping out all the asset values. You can’t just make the debt disappear and have the assets stand there at the values that they are today. . . . When this debt is written off or implodes, or whatever they want to call it, that means all these assets are going to go down. That’s why I am saying it is going to go down 95% against gold. There is absolutely no other way, in my view.”

Join Greg Hunter as he goes One- on-One with Egon von Greyerz, founder of Matterhorn Asset Management, which can be found on GoldSwitzerland.com.

-END-

World economic news:

Well that is all for today

I will see you Thursday night.

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: