SEPT 27/ANOTHER RAID DAY FOR GOLD AND SILVER//LBMA AND OTC OPTIONS EXPIRE ON MONDAY//GOLD DOWN$8.20 TO $1500.00//SILVER DOWN ANOTHER 34 CENTS TO $17.56//ANOTHER HUGE QUEUE JUMPING IN SILVER//MASSIVE ADJUSTMENTS IN BOTH GOLD AND SILVER AT THE COMEX..HUGE AMOUNT OF SILVER HAVING BEEN LEAVING THE COMEX VAULTS LATELY//TRUMP SCARES THE MARKET BY INDICATING THAT HE IS LOOKING INTO BANNING CHINESE FIRMS TRADING ON THE EXCHANGES //MORE SWAMP STORIES FOR YOU TONIGHT INCLUDING UKRAINE-GATE

GOLD:$1500.00 DOWN $8.20 (COMEX TO COMEX CLOSING)

 

 

 

 

 

 

 

 

 

 

 

 

Silver:$17.56 DOWN 34 CENTS  (COMEX TO COMEX CLOSING)

 

 

Closing access prices:

Gold : $1497.00

 

silver:  $17.53

 

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
Mike  Savage..
“For those who still doubt that all markets are being manipulated even though the banks have paid billions in fines for manipulating LIBOR, currencies, interest rates, and gold and silver just maybe a criminal indictment of 3 traders as JP Morgan might give you a clue as to what has been happening. By the way, the attorney representing at least one defendant is none other than the person who shut down an investigation at the CFTC a number of years ago regarding said manipulation of the gold and silver markets.” … Mike Savage

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 0/0

 

NUMBER OF NOTICES FILED TODAY FOR  SEPT CONTRACT: 0 NOTICE(S) FOR nil OZ (0.00 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  1770 NOTICES FOR 177000 OZ  (5.5054 TONNES)

 

 

 

SILVER

 

FOR SEPT

 

 

42 NOTICE(S) FILED TODAY FOR 210,000  OZ/

 

total number of notices filed so far this month: 8722 for   43,610,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 7790 DOWN 70 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 8031 DOWN 30

 

 

 

Let us have a look at the data for today

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IN SILVER THE COMEX OI FELL BY A GOOD  SIZED 1923 CONTRACTS FROM 216,403 DOWN TO 214,480 WITH THE 12 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  2214 AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  3342 CONTRACTS. WITH THE TRANSFER OF 2214 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 2214 EFP CONTRACTS TRANSLATES INTO 11.071 MILLION OZ  ACCOMPANYING:

1.THE 12 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.

43.610   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE

YESTERDAY, ANOTHER MAJOR ATTEMPT BY THE BANKERS TO COVER THEIR MASSIVE SHORTFALL  AT THE SILVER COMEX.  OUR OFFICIAL SECTOR//BANKERS AGAIN USED COPIOUS NON BACKED PAPER IN THEIR SUCCESSFUL ENDEAVOUR TO LOWER SILVER’S PRICE (12 CENTS). HOWEVER TO THEIR SHOCKING SURPRISE, NOBODY LEFT THE SILVER COMEX ARENA AS THE TOTAL OF OUR TWO EXCHANGES ROSE BY A CONSIDERABLE 882 CONTRACTS MAKING THEIR RAID TOTALLY USELESS TO THEM AS THEIR PRIMARY AIM IS TO FLEECE LONGS.  THE MAJORITY JUST MORPHED INTO LONDON FORWARDS AND THEY WILL SEEK OUT PHYSICAL METAL.

.

 

 

THE LIQUIDATION OF COMEX OI OF SPREADERS HAVE STOPPED AND WE ARE NOW IN THE LIQUIDATION 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:

33,171 CONTRACTS (FOR 19 TRADING DAYS TOTAL 33,171 CONTRACTS) OR 165.86 MILLION OZ: (AVERAGE PER DAY: 1746 CONTRACTS OR 8.729 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF AUGUST:  165.86 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 23.69% 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:          1715.46   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 GOOD SIZED DECREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1923, WITH THE 12 CENT LOSS IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  HUGE SIZED EFP ISSUANCE OF 2214 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 AN ATMOSPHERIC AND CRIMINALLY  SIZED: 291 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 2214 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH DECREASE OF 1923  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 12 CENT LOSS IN PRICE OF SILVER AND A CLOSING PRICE OF $17.90 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. 1.057 BILLION OZ TO BE EXACT or 151% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MARCH MONTH/ THEY FILED AT THE COMEX: 42 NOTICE(S) FOR 210,000 OZ OF SILVER

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

 

.

 

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 43.610 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..AS WE  NOW MORPHED INTO THE LIQUIDATION PHASE OF SPREADING CONTRACTS FOR GOLD.  THEY WILL ACCUMULATE CONSIDERABLE AMOUNT OF THE CONTRACTS DURING THE FIRST 3 WEEKS AND THEN LIQUIDATE ONE WEEK PRIOR TO FIRST DAY NOTICE WHICH IS WHAT THEY ARE DOING RIGHT NOW.

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 FELL BY A GOOD SIZED 2256 CONTRACTS, TO 631,691 DESPITE THE  $2.70 PRICING GAIN WITH RESPECT TO COMEX GOLD PRICING// YESTERDAY// /HOWEVER WE ALSO LOST CONSIDERABLE  COMEX OI CONTRACTS COMING FROM THE LIQUIDATION OF SPREADERS. ALSO THE DIFFERENTIAL FROM THE PRELIMINARY OI AND FINAL NUMBERS IS QUITE HIGH AND THAT INFLUENCES PRICE. THE cftc REFUSES TO ANSWER US WHY THIS IS HAPPENING

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 7462 CONTRACTS:

OCT 2019: 0 CONTRACTS, DEC>  7462 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 631,691,,.  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 5,210 CONTRACTS: 2256 CONTRACTS DECREASED AT THE COMEX  AND 7462 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 5210 CONTRACTS OR 521,000 OZ OR 16.21 TONNES.  YESTERDAY WE HAD A SMALL GAIN OF $2.70 IN GOLD TRADING….

AND WITH THAT SMALL GAIN IN  PRICE, WE  HAD A STRONG GAIN IN GOLD TONNAGE OF 16.21  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 SOME LONGS WHICH IS THEIR PRIMARY FUNCTION. THE BANKER/OFFICIAL SECTOR HAVE AGAIN CALLED FOR A RAID ON OUR GOLD/SILVER TODAY AS THE SPREADERS ILLEGALLY LIQUIDATE THEIR CONTRACTS AT DIFFERENT TIMES OF THE DAY  MAGNIFYING THE ATTACK AND LOSS OF OPEN INTEREST  SOMETHING THAT THESE CROOKS DO AT EVERY UPCOMING ACTIVE DELIVERY MONTH WHETHER IT IS GOLD OR SILVER. THE CFTC REFUSE TO ANSWER ANY QUESTIONS ADDRESSED TO THEM ON THIS OBVIOUS CRIMINAL ACTIVITY (THIS ACTIVITY HAS BEEN ALSO HIGHLIGHTED IN BRIEFS SUBMITTED TO THE FCA IN LONDON).

 

 

 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF SEPT : 151,014 CONTRACTS OR 15,101,400 oz OR 469.72 TONNES (19 TRADING DAY AND THUS AVERAGING: 7948 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 19 TRADING DAYS IN  TONNES: 469.72 TONNES

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

THUS EFP TRANSFERS REPRESENTS 469.72/3550 x 100% TONNES =13.23% OF GLOBAL ANNUAL PRODUCTION

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     4621.79  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 GOOD SIZED DECREASE IN OI AT THE COMEX OF 2,256 DESPITE THE  PRICING GAIN THAT GOLD UNDERTOOK YESTERDAY($2.70)) //.WE ALSO HAD  A VERY STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 7,462 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 7,462 EFP CONTRACTS ISSUED, WE  HAD AN ATMOSPHERIC  AND CRIMINALLY SIZED GAIN OF 5210 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

7,462 CONTRACTS MOVE TO LONDON AND 2256 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 16.21 TONNES). ..AND THIS GOOD INCREASE OF DEMAND OCCURRED DESPITE THE SMALL GAIN IN PRICE OF $2.70 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX.

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

 

 

 

 

 

 

 

 

we had:  0 notice(s) filed upon for nil oz of gold at the comex.

 

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

GLD...

WITH GOLD DOWN $8.20 TODAY//(COMEX-TO COMEX)

 

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 34 CENTS TODAY: 

 

NO CHANGES IN SILVER INVENTORY AT THE SLV//

 

/INVENTORY RESTS AT 381.786 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 GOOD SIZED 1923 CONTRACTS from 216,403 DOWN TO 214,480 AND FURTHER 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  2214  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2214 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 1923  CONTRACTS TO THE 2214 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN AN ATMOSPHERIC AND CRIMINALLY SIZED GAIN OF 291 OPEN INTEREST CONTRACTS (DESPITE THE LOSS IN PRICE). THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 1.455 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: 43.610 MILLION OZ//

 

 

RESULT: A GOOD SIZED DECREASE IN SILVER OI AT THE COMEX WITH THE 12 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 2214 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

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

 

 

(report Harvey)

.

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 3.08 POINTS OR 0.11%  //Hang Sang CLOSED DOWN 87.12 POINTS OR 0.33%   /The Nikkei closed DOWN 169.37 POINTS OR 0.77%//Australia’s all ordinaires CLOSED UP 54%

/Chinese yuan (ONSHORE) closed UP  at 7.1266 /Oil DOWN TO 55.84 dollars per barrel for WTI and 61.94 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.1266 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.1224 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 ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3A//NORTH KOREA/ SOUTH KOREA

North Korea

After a lack of progress on the uSA side of things, North Korea now raises doubts on the possibility of future uSA talks

(zerohedge)

3b) REPORT ON JAPAN

3C  CHINA

a)My goodness, the protests have caused serious problems in Hong Kong.  Hotel rooms have gone down in some places to only 9 dollars per night

(zerohedge)

b)This is huge: a shocked Wall Street reacts to Trump’s latest threat of cancelling the listing of Chinese companies as well as restrict uSA companies dealing in China

(zerohedge)

4/EUROPEAN AFFAIRS

i)Gatestone provides their analysis of where we are with respect to the Brexit

(Gatestone)

ii)Brexit and the slumping European economy is forcing Jaguar Land Rover to halt production

(zerohedge)

iii)LATE IN THE DAY:  UKAs we continue to pound the table, the WeWork situation is an accident waiting to happen

(zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Iran/UK

the UK tankers seized by Iran, the Stena Impero was finally released today after two months in captivity

(zerohedge)

6.Global Issues

Sweden

Just read as to what is going on in Sweden. Bombings, terrorist attacks with their vehicles, rapes, robberies…

Sweden is out of control..

(courtesy Bergman/Gatestone Institute)

7. OIL ISSUES

i)Oil drops on news of a partial ceasefire with Yemen

(zerohedge)

ii)Oil falls more on news that the USA might give up all Iran sanctions for talks

(zerohedge)

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

i)Gold app Glint collapses just after two months after fundraising failed

(London’s Financial times/GATA)

ii)Hong Kong is just one route that China takes to import gold.  In August they imported close to 13 tonnes of gold a big increase from July (July’s import was 8.08 tonnes)

(courtesy Reuters/GATA)

iii)Mish explains perfectly why the USA cannot possibly win in their trade war with China.  The answer is gold.

(Mish Shedlock/Mishtalk)

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)This is one of the more important data points/uSA spending and it shows the weakest growth in 6 months

(zerohedge)

b)I would not put much faith in this soft data.  U. of Michigan confidence rebounds.  However it does show that Democrats are getting more depressed

(zerohedge)

iii) Important USA Economic Stories

a)THE sad state of affairs of Illinois cities as they are getting crushed by pension costs. Ted Dabrowski our resident expert on Illinois affairs takes a look at just one city Peoria

(courtesy Ted Dabroski/WirePoints.org)

b)Liquidity shortage eases a bit with only 49 billion of the final TOMO accepted out of a 75 billion offering.

The liquidity shortage however will show its true colours on Monday.
(zerohedge)

iv) Swamp commentaries)

a)Civil war breaks out at Fox between Tucker Carlson and Shep Smith over Smith’s analysis of Trump’s Ukraine actions

(zerohedge)

b)We now morph into Ukrainegate from Russiagate.  Here is the entire story from the beginning for those who missed how this started:

(Cunningham/Strategic Culture Foundation).
c)Trump states that the USA is at war with the Democrats. He accused the whistleblower of being a spy

(zerohedge)

LET US BEGIN:

 

 

Let us head over to the comex:

 

THE TOTAL COMEX GOLD OPEN INTEREST FELL BY A GOOD SIZED 2256 CONTRACTS TO A LEVEL OF 631,691 DESPITE THE GAIN OF $2.70 IN GOLD PRICING WITH RESPECT TO YESTERDAY’S // COMEX TRADING)

WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF AUGUST..  THE CME REPORTS THAT THE BANKERS ISSUED STRONG SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 7462 EFP CONTRACTS WERE ISSUED:

 FOR SEPT; 0 CONTRACTS: DEC: 7462   AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  7462 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: 5210 TOTAL CONTRACTS IN THAT 7462 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A GOOD SIZED 2256 COMEX CONTRACTS. INCLUDED IN THE GAIN AT THE COMEX IS THE LOSS OF CONSIDERABLE SPREADING CONTRACTS.

THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD.  THE BANKERS FAILED YESTERDAY IN THEIR ATTEMPT AT LOWERING GOLD’S PRICE SO THEY ARE TRYING AGAIN EARLY THIS MORNING USING THE ILLEGAL ACTIVITY OF THE SPREADING LIQUIDATION WHICH IS ONGOING RIGHT AS WE SPEAK. I CAN ASSURE YOU THAT THE LONGS THAT PICKED UP CHEAP CONTRACTS YESTERDAY WILL TURN THAT PAPER INTO REAL METAL.

NET GAIN ON THE TWO EXCHANGES ::  5210 CONTRACTS OR 521,000 OZ OR 16.21 TONNES.

We are now in the NON  active contract month of SEPT and here the open interest stands at 0 CONTRACTS and we LOST 19 contracts.  We had 19 notices filed on yesterday so  we gained 0 contracts or an additional NIL 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 FELL by 5298 contracts DOWN to 12,084. The month of November saw a gain of 155 contracts and thus the OI is ADVANCED to 688.  The very big December contract month saw its oi RISE by 1247 contracts UP to 486,765. First day notice is this coming Monday, Sept 30 and thus we have 1 more reading day with the front October contract month 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 0 NOTICES FILED TODAY AT THE COMEX FOR  nil OZ. (0.00 TONNES)

 

 

 

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And now for the wild silver comex results.

Total COMEX silver OI FELL BY A GOOD SIZED 1923 CONTRACTS FROM 216,403 DOWN TO 214,480 (AND FURTHER FROM THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S CONSIDERABLE  OI COMEX GAIN OCCURRED DESPITE OUR 12 CENT LOSS IN PRICING.//YESTERDAY.

WE ARE NOW INTO THE NON  ACTIVE DELIVERY MONTH OF SEPT.  HERE WE HAVE 42 OPEN INTEREST STAND FOR DELIVERY WITH A GAIN OF 24 CONTRACTS.  WE HAD 18 NOTICES FILED YESTERDAY SO WE GAINED 42 CONTRACTS OR AN ADDITIONAL 210,000 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. THEY NO DOUBT COULD NOT FIND ANY SILVER METAL ON THE ENGLISH SIDE OF THE POND SO THEY WILL TRY THEIR LUCK OVER HERE.

THE NEXT NON ACTIVE CONTRACT MONTH IS OCTOBER AND IT FELL BY 253 CONTRACTS TO STAND AT 1206. NOVEMBER SAW A SMALL GAIN OF 146 CONTRACTS TO STAND AT 397. THE NEXT ACTIVE DELIVERY MONTH AFTER SEPT IS DECEMBER AND HERE THE OI FELL BY 1731 CONTRACTS DOWN TO 165,578.

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 42 notice(s) filed for 210,000, OZ for the SEPT, 2019 COMEX contract for silver

Trading Volumes on the COMEX TODAY: 421,921  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  412,619  contracts

 

 

 

 

 

FINAL standings for  SEPT/GOLD

SEPT 27/2019

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

 

 

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
00 notice(s)
 nil OZ
(0.0590 TONNES)
No of oz to be served (notices)
0 contracts
(0000 oz)
0 TONNES
Total monthly oz gold served (contracts) so far this month
1770 notices
177000 OZ
5.5054 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

 

we had 0 dealer entry:

We had 0 kilobar entries

 

 

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

 

we had 0 deposit into the customer account

i) Into JPMorgan:  nil oz

 

 

 

total gold deposits: nil  oz

 

very little gold arrives from outside/ zero amount  arrived   today

we had 0 gold withdrawal from the customer account:

 

 

 

total gold withdrawals; nil  oz

I have been waiting for this transaction for two months:

i) we had 3 big adjustments:

i) Out of Brinks: 57,517.692 oz was adjusted out of the Brinks dealer into the customer account of Brinks

ii) Out of HSBC: 70,863.170 oz was adjusted out of  the dealer account of HSBC and into the customer account of HSBC

and strangely:

iii) to replenish the dealer account:

Int Delaware adjusts 45,138.600 oz out of the customer account into the dealer account

Net 83,242.262 oz or 2.58 tonnes

 

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 0 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 (1770) x 100 oz , to which we add the difference between the open interest for the front month of  SEPT. (00 contract) minus the number of notices served upon today (00 x 100 oz per contract) equals 177,000 OZ OR 5.5054 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 (1770 x 100 oz)  + (00)OI for the front month minus the number of notices served upon today (00 x 100 oz )which equals 177,000 oz standing OR 5.5054 TONNES in this  active delivery month of SEPT.

 

We GAINED 0 contracts or an additional nil 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 20.26 TONNES OF REGISTERED (  GOLD OFFERED FOR SALE) VS 27.153  TONNES OF GOLD STANDING //AUGUST AND 5.5054 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 2 TRANSACTIONS ON THIS FRONT IN SEPT SO FAR, AND THUS I WILL ADD THE 27.153 TONNES TO THE 5.5054 TONNES (EQUALS 32.6584 TONNES- 2.60 tonnes adjusted =  30.05 tonnes) AGAINST THE 20.265 TONNES OF REGISTERED GOLD.

total registered or dealer gold:  651,544.259 oz or  20.254 tonnes 
total registered and eligible (customer) gold;   8,096,896.096 oz 251.84 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.

FINAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
SEPT 27 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 1,823,812.208 oz
brinks
HSBC
Scotia

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
1,085.088 oz
CNT
No of oz served today (contracts)
42
CONTRACT(S)
(210,000 OZ)
No of oz to be served (notices)
0 contracts
 0 oz)
Total monthly oz silver served (contracts)  8722 contracts

43,610,000 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 CNT: 1,085.088

 

 

*** 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:  1,085.088  oz

 

we had 3 withdrawals out of the customer account:

 

 

i) Out of Brinks: 611,480.508 oz

ii) Out of Scotia: 604,611.60 oz

iii) Out of HSBC: 608,170.600 oz

 

 

 

 

 

 

total 1,823,812.208  oz

 

we had 2 whopping adjustment :

i) Out of CNT: 1,406,417.004 oz was adjusted out of the dealer account of CNT and this landed into the customer account of CNT

ii) Out of Brinks:  6,363,783.390 oz was adjusted out of the dealer Brinks into the customer account of Brinks

these are deemed settlements.

 

total dealer silver:  75.710 million

total dealer + customer silver:  313.025 million oz

THE COMEX IS LOSING A LOT OF SILVER LATELY

 

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The total number of notices filed today for the SEPTEMBER 2019. contract month is represented by 42 contract(s) FOR 210,000 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 8722 x 5,000 oz = 43,610,000 oz to which we add the difference between the open interest for the front month of SEPT. (42) and the number of notices served upon today 42 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the SEPT/2019 contract month: 8722 (notices served so far) x 5000 oz + OI for front month of SEPT (42)- number of notices served upon today (42)x 5000 oz equals 43,610,000 oz of silver standing for the SEPT contract month. 

We GAINED 42 contracts or  210,000 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 42 notice(s) filed for 2100,000 OZ for the SEPT, 2019 COMEX contract for silver

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

 

TODAY’S ESTIMATED SILVER VOLUME:  136,317 CONTRACTS (we had considerable spreading activity..accumulation

 

CONFIRMED VOLUME FOR YESTERDAY: 114,742 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 114,742 CONTRACTS EQUATES to 573 million  OZ 81.9% OF ANNUAL GLOBAL PRODUCTION OF SILVER..makes sense!!

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

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

 

end

 

 

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NPV for Sprott

1. Sprott silver fund (PSLV): NAV FALLS TO -1.66% ((SEPT 27/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.92% to NAV (SEPT 27/2019 )
Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ -1.66%

(courtesy Sprott/GATA)

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

NAV 14.99 TRADING 14.47///DISCOUNT 3.46

 

 

 

 

 

END

And now the Gold inventory at the GLD/

SEPT 27.WITH GOLD DOWN $8.20 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 924.94 TONNES

SEPT 26//WITH GOLD UP $2.70 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 924.94 TONNES

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

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

SEPT 27/2019/ Inventory rests tonight at 924.94 tonnes

 

 

*IN LAST 670 TRADING DAYS: 24.22 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 570- TRADING DAYS: A NET 142.43 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

 

 

end

 

Now the SLV Inventory/

SEPT 27/WITH SILVER DOWN 34 CENTS TODAY/ NO CHANGE IN SILVER INVENTORY AT THE SLV//.INVENTORY RESTS AT 381.786 MILLION OZ/

SEPT 26/WITH SILVER DOWN 12 CENTS TODAY: A HUGE CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER DEPOSIT OF 3.975 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 381.786 MILLION OZ/

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//

 

SEPT 27/2019:

 

 

Inventory 381.786 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: 2.02

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = -.02

end

 

 

end

 

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

Gold Imports Into China Surge 61% From 8 Year Low To 13 Tonnes

◆ Gold is 0.6% lower today at $1,497/oz and appears headed for a 1.1% fall this week after a 2% gain last week

◆ Gold looks set for a near 2% loss in September which will encourage bargain hunters buying on weakness; The dollar remains near multi-week highs despite poor U.S. economic data of late and the political turmoil in the U.S.

◆ Heightened risks from political tensions to the U.S-China trade war are being ignored for now but are impacting the global economy and leading to safe haven demand

◆ China’s net monthly gold imports via Hong Kong in August surged nearly 61%, after falling to their lowest in more than eight years in July, the Hong Kong Census and Statistics Department data showed yesterday

◆ Gold and silver frequently see weakness at quarter end which continues in the very early part of the following quarter; we are likely seeing this again as large players “paint the tape” and hedge funds and banks take profits on their long positions

◆ Palladium is set for an eighth straight weekly gain and remains near all time record nominal highs; platinum is poised for its worst week in two months

 

NEWS and COMMENTARY

Gold settles higher, a day after biggest one-day loss in almost 3 weeks

Gold recovers after sharp fall; strong dollar caps gains

China trade talks set to resume Oct. 10

Dollar supported by safety flows; euro at new 2-year low

Pentagon to Send 200 Troops, an Air-Defense Missile Battery and Radars to Saudi

Stocks turn positive despite trade-war and impeachment concerns

Trump seeks whistleblower sources, mentions treason

 

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

25-Sep-19 1530.85 1528.75, 1231.11 1234.62 & 1391.24 1391.77
24-Sep-19 1520.25 1520.65, 1220.76 1216.67 & 1382.36 1381.36
23-Sep-19 1519.50 1522.10, 1222.13 1225.90 & 1385.48 1385.11
20-Sep-19 1504.10 1501.90, 1199.07 1203.62 & 1361.06 1362.52
19-Sep-19 1498.40 1500.70, 1200.67 1201.76 & 1354.85 1357.08
18-Sep-19 1502.20 1503.50, 1206.27 1204.90 & 1360.39 1359.92
17-Sep-19 1499.30 1502.10, 1208.89 1207.24 & 1361.51 1360.45
16-Sep-19 1502.05 1497.20, 1207.35 1203.30 & 1357.25 1359.46
13-Sep-19 1506.30 1503.10, 1209.41 1208.19 & 1356.88 1358.35
12-Sep-19 1502.95 1515.20, 1219.94 1227.46 & 1362.88 1373.53
11-Sep-19 1493.65 1490.65, 1208.21 1209.07 & 1354.74 1355.90

Jim Rogers: Buy Gold Coins and Silver Coins as Global Crisis Is Coming – Watch here

SIGN UP FOR OUR AWARD WINNING MARKET UPDATES HERE

Mark O’Byrne
Executive Director

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

Gold app Glint collapses just after two months after fundraising failed

(London’s Financial times/GATA)

Gold app Glint collapses just months after fundraising

 Section: 

By Henry Samuelson
Financial Times, London
Wednesday, September 25, 2019

A U.K. startup that promised to allow people to pay for goods in gold has collapsed, dealing a blow to its backers including Conservative MP Steve Baker, who had promoted the company on Twitter.

The Glint app allowed people to load credit in various currencies, which was then used to buy a portion of a physical gold bar, stored in a vault in Switzerland. Customers could use that gold via mobile and debit card-based payments. Glint said it had attracted tens of thousands of registered users since its launch last year, and had handled transactions worth more than $50 million.

… 

But the company’s administrators said on Tuesday that Glint had blocked all customer withdrawal and payment requests, after the company’s board was unable to secure funding to repay an outstanding loan. Glint did not respond to a request for comment.

“Following a dispute with the secured creditor, the board were unable to secure sufficient funding in time to repay the outstanding loan,” said FRP Advisory LLP, which was appointed as Glint’s joint administrator.

The company’s demise comes just a few months after Glint started operations in the United States. It also raised L5 million in a private placement in June this year, led by Canadian asset manager Sprott, which is one of the largest institutional investors in precious metals with $8 billion in assets under management.

The administrators will work with the board of Glint to seek investment to rescue the company, or if that fails, look to transfer the business and assets “to an appropriately regulated entity,” FRP said. …

Glint said on its website that customers’ gold was legally allocated and “held in a secure, insured, and independent” vault run by Brink’s, the US-based security company, in Switzerland. “There has been no change to this arrangement as a result of the administration,” it said.

“The administrators’ team is also reviewing these arrangements to verify that the amount of gold held by customers per Glint’s records reconciles with the physical gold at Brinks, which the directors and management of Glint assure the administrators they do,” the notice said. …

… For the remainder of the report:

https://www.ft.com/content/48ce96a8-decb-11e9-b112-9624ec9edc59

end

Hong Kong is just one route that China takes to import gold.  In August they imported close to 13 tonnes of gold a big increase from July (July’s import was 8.08 tonnes)

(courtesy Reuters/GATA)

China’s August net gold imports bounce from 8-year low

 Section: 

From Reuters
Thursday, September 26, 2019

China’s net monthly gold imports via Hong Kong in August surged nearly 61%, after falling to their lowest in more than eight years in July, the Hong Kong Census and Statistics Department data showed on Thursday.

Net imports via Hong Kong to China, the world’s top consumer of the metal, increased to 12.997 tonnes last month from 8.085 tonnes in July, the data showed.

… 

Total gold imports via Hong Kong also rose in August for the first time since April, rising 43.5% to 15.661 tonnes from 10.915 tonnes in July.

Both the net and total imports via Hong Kong to China in July had fallen to their lowest since May 2011.

In August, China partially lifted restrictions on imports of gold, bullion industry sources said, loosening curbs that had stopped an estimated 300-500 tonnes of the metal from entering the country since May. …

… For the remainder of the report:

https://www.reuters.com/article/china-gold-imports/update-1-chinas-augus…

* * *

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:

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To contribute to GATA, please visit:

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

iii) Other physical stories:

Mish explains perfectedly why the USA cannot possibly win in their trade war with China.  The answer is gold.

(Mish Shedlock/Mishtalk)

Trump’s Unwinnable Trade War: Gold Explains Why

Authored by Michael Shedlock via MishTalk,

Trump wants to cure trade imbalances via tariffs. It cannot possibly work.

Another Look at NAFTA

One of my readers proposed that problems US balance of trade issues started with NAFTA. Wrong!

Please consider Disputing Trump’s NAFTA “Catastrophe” with Pictures: What’s the True Source of Trade Imbalances?

Explaining Balance of Trade

Trump’s Mission Impossible

It is impossible for tariffs to fix problems caused by making the dollar the world’s reserve currency then removing the last constraints on global deficit spending!

If you support Trump’s tariffs as some sort of cure to trade imbalances, please read the above sentence over and over again until it finally sinks in that Trump is on a foolish path.

Historic Balance of Trade

From 1866 to 1968 the US generally had a trade surplus.

The US had huge trade surpluses during and just after WWI and WWII.

Why?

The productive output of Europe was destroyed. US production was not harmed in either war.

Although no US production was destroyed in the Korean War or the War in Vietnam, in both cases US production was diverted from productive uses to asinine uses, especially true for the Vietnam war.

Other nations were not stupid enough to get involved in a significant way, if at all.

Chinese Imports

Tut tut some may say. Harsh words indeed.

Their argument is that Nixon established trade relations with China in 1972.

OK let’s take a look.

US Imports from China did not soar until after China joined the WTO in 2001.

The US current account stared sinking well before NAFTA.

So, what is the cause?

No Enforcement Mechanism

Gold provided an enforcement mechanism against mercantilism, massive deficit spending, and huge government subsidies.

Starting August 15, 1971, when Nixon closed the gold window, there has been no enforcement mechanism.

That’s a problem that tariffs cannot possibly cure.

Why the Delayed Response to Nixon?

Nixon said it was “temporary”.

Guess what? It wasn’t.

Tariffs cannot possibly fix this issue.

Tariffs can only make matters worse by increasing costs on consumers and industries.

Trump is barking up the wrong tree, and loudly.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.1266/ GETTING VERY DANGEROUSLY PAST  7:1

//OFFSHORE YUAN:  7.1224   /shanghai bourse CLOSED UP 3.08 POINTS OR 0.11%

HANG SANG CLOSED DOWN 87.12 POINTS OR 0.33%

 

2. Nikkei closed DOWN 169.37 POINTS OR 0.77%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index UP TO 99.17/Euro RISES TO 1.0936

3b Japan 10 year bond yield: RISES TO. –.24/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.08/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 55.84 and Brent: 61.94

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.58%/Italian 10 yr bond yield DOWN to 0.84% /SPAIN 10 YR BOND YIELD DOWN TO 0.15%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.42: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.34

3k Gold at $1494.85 silver at: 17.56   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 9/100 in roubles/dollar) 64.34

3m oil into the 55 dollar handle for WTI and 61 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 108.08 DESTROYING JAPANESE CITIZENS WITH HIGHER FOOD INFLATION

30 SNB (Swiss National Bank) still intervening again in the markets driving down the SF. It is not working: USA/SF this morning .9923 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0852 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.58%

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 1.71% early this morning. Thirty year rate at 2.16%

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

6.  TURKISH LIRA:  UP  TO 5.6636..

SSDD: Global Markets Rise On “Wave Of Trade Optimism”

It’s groundhog day, again.

World shares erased losses and US equity futures traded at yesterday’s high on the last day of the week, buoyed by what Reuters described was “a wave of optimism that U.S.-China trade tensions might be easing” as markets continued to brush off concerns about possible impeachment moves against U.S. President Donald Trump

In short, same shit, different groundhog day.

zerohedge@zerohedge

Tomorrow market open headline cointoss:

“Futures rise as trade deal hopes buoy risk”

Or

“Futures fade as trade deal hopes dim”

MSCI’s world index reversed earlier losses and was trading flat as US traders walked into their desks, even as it was still heading toward its worst weekly performance since mid-August, though Europe’s STOXX 600 index fared better, adding 0.5% as London’s bourse outperformed on a weaker pound and hopes grew of progress toward resolving the trade war.

Wall Street futures signaled a firm opening in New York, gaining around 0.3% and reversing all of yesterday’s late losses.

Mining and car-maker shares led Europe’s Stoxx 600 higher, along with U.K. stocks while chipmakers Infineon and Siltronic both fell around 1.5%, mirroring losses for Asian chip-related shares Samsung Electronics and SK Hynix after major Huawei supplier Micron Technology tumbled 7% in after-hours trade after it forecast first-quarter profit below Wall Street targets.  Britain’s exporter-heavy FTSE 100 rose along with gilts and the pound fell after Bank of England’s most hawkish policymaker, Michael Saunders, said rate cuts may be needed even if there is a Brexit deal.

Earlier in the session, Asian stocks fell, heading for a weekly loss, as investors assessed new revelations surrounding an impeachment inquiry of U.S. President Donald Trump. Most markets in the region were down, with Japan and South Korea leading declines. The Topix dropped 1.2%, dragged by a slew of Japanese companies trading ex-dividend. The Shanghai Composite Index closed 0.1% higher after fluctuating for most of the day, with Kweichow Moutai rising and China Shenhua Energy retreating. The U.S. probably won’t renew a temporary waiver that lets American companies do business with telecommunications giant Huawei. India’s Sensex inched 0.1% lower, dragged by Tata Consultancy Services and IndusInd Bank. The country is upgraded to neutral on expectation that recent tax changes will lift earnings, UBS analysts wrote in a note today

On Thursday, investors focused on a whistleblower report that said Trump abused his office in trying to solicit Ukraine’s interference in the 2020 U.S. election for his political benefit, and that the White House tried to “lock down” evidence about that conduct. The report came after the speaker of the U.S. House of Representatives Nancy Pelosi this week launched an impeachment inquiry into Trump, who has denied wrongdoing. However, chances of his being removed from office look slim given that the Republicans control the Senate, where any impeachment trial would be held.

“What we are waiting to see is how this might impact the U.S.-China trade negotiations,” said Hugh Gimber, global market strategist at J.P. Morgan Asset Management. “It’s that combination this week of weakening economic data and rising political uncertainty that has caused some tricky periods in markets.”

And speaking of the biggest source of overnight market “optimism”, Washington and China are preparing for another round of trade talks scheduled for Oct. 10 and 11, but investors voiced scepticism at prospects of a major breakthrough then.

“There is still a huge gulf,” said Eoin Murray, head of investment at Hermes Investment Management, adding that prospects for a deal had receded from earlier in the year. “Around April, May time, the main sticking point was the enforcement mechanism – but we have retreated miles from that at this point.

Tech remains a sticking point, with reports on Thursday that the United States is unlikely to allow American firms to supply China’s Huawei Technologies undermining hopes of a broad bilateral deal.

Offsetting lingering doubts, China’s top diplomat said on Thursday that China was willing to buy more U.S. products and that trade talks would yield results. Those comments fueled the positive mood after Trump on Wednesday praised the Chinese purchases, saying a trade deal could come sooner than people thought.

“Trade… remains the most important issue for markets, and the news that we have had over the last couple of weeks I would see as gestures of goodwill from both sides – trying to set up a more constructive negotiation in a couple of weeks’ time,” Gimber added.

In FX, the dollar headed for a second week of gains amid supportive quarter-end flows and a pound under pressure. The pound tumbled to a two week low and gilts rallied after otherwise hawkish BOE policymaker Michael Saunders said the central bank may have to cut interest rates even in the event of an orderly Brexit. Treasuries slipped while euro-area bonds traded mixed and stocks edged higher. The New Zealand dollar was one of the few currencies to appreciate against the dollar this week, boosted by the central bank’s comments Thursday indicating interest rate cuts were working.

The offshore yuan was set for its most serene week in two months as a week-long holiday to celebrate the 70th anniversary of the People’s Republic of China approaches. The currency was poised for a 0.09% move this week, its smallest weekly move since July 26. Meanwhile, the onshore yuan has continued to fall even as the central bank has set its daily reference rate stronger than expected for an eighth day. Its set for a weekly drop of 0.45%. “The fixing has been pretty stable, sending the signal that China wants to slow down the pace of depreciation,“ said Tommy Xie, an economist at Oversea-Chinese Banking Corp. However, onshore traders remain “jittery” and they are still buying the greenback on dips, he said, adding that the next catalysts to watch out for are the trade talks with the U.S. due in October, and the fourth plenary session of the 19th People’s Congress.

In rates, moves in European bond markets Friday were limited, with Treasuries underperforming German bunds; gilts led gains. 10Y Treasurys dipped modestly, with the yield on benchmark US paper rising from 1.69% to 1.71%. China’s 10-year government bonds slipped, with the yield headed for a 5-basis-point weekly advance.

Oil fell after a report that Saudi Arabia had moved to impose a partial cease-fire in Yemen. Treasury 10-year note yields ticked above 1.71% while the dollar was steady against its biggest counterparts.  Bitcoin dropped for a sixth consecutive day to the $8,000 mark in its longest losing streak in almost a year.

Market Snapshot

  • S&P 500 futures up 0.2% to 2,986.75
  • STOXX Europe 600 up 0.4% to 391.57
  • MXAP down 0.6% to 157.43
  • MXAPJ down 0.2% to 503.69
  • Nikkei down 0.8% to 21,878.90
  • Topix down 1.2% to 1,604.25
  • Hang Seng Index down 0.3% to 25,954.81
  • Shanghai Composite up 0.1% to 2,932.17
  • Sensex down 0.1% to 38,936.80
  • Australia S&P/ASX 200 up 0.6% to 6,716.12
  • Kospi down 1.2% to 2,049.93
  • German 10Y yield rose 0.3 bps to -0.579%
  • Euro up 0.07% to $1.0929
  • Italian 10Y yield fell 1.9 bps to 0.485%
  • Spanish 10Y yield fell 0.6 bps to 0.143%
  • Brent futures down 0.1% to $62.67/bbl
  • Gold spot down 0.5% to $1,497.54
  • U.S. Dollar Index up 0.1% to 99.22

Top Overnight News from Bloomberg

  • Revelations about Donald Trump’s interactions with Ukraine’s president are shaping up to be the most serious threat to his presidency so far, surpassing even the special counsel investigation into Russian election interference that dogged the first two years of his administration
  • The Bank of England may have to cut interest rates even if the U.K. avoids a no-deal Brexit, according to policy maker Michael Saunders. His remarks are a sharp departure for someone who was previously considered the most hawkish member of the Monetary Policy Committee
  • The EU is rapidly losing faith that U.K. Prime Minister Boris Johnson can deliver a divorce deal by the Oct. 31 deadline, as Brexit talks stumble. EU officials view Johnson’s inflammatory rhetoric against his opponents as a hindrance and have all but given up on a breakthrough over the next five weeks
  • Brexit anxiety might be high, but that hasn’t stopped European corporate bond issuers from selling a record amount of sterling-denominated debt this month. It makes perfect sense when cross-currency basis swaps can leave them borrowing for less than at home
  • Chinese industrial companies’ profits fell in August, with the 2% drop from a year ago another sign of how the slowing economy is hurting business and increasing problems for the government

Asian equity markets were mostly subdued following the weak lead from Wall St where all major indices finished negative on what was a choppy session due to trade uncertainty and as political concerns regarding the whistleblower complaint lingered. ASX 200 (+0.6%) and Nikkei 225 (-0.8%) were mixed in which Australia bucked the overall downbeat trend in the region ahead of next week’s anticipated RBA rate cut although metal names and gold miners lagged as the precious metal eyed the USD 1500/oz level to the downside, while the Japanese benchmark was led lower by losses in Kansai Electric after reports of illicit payoffs and with notable declines in SoftBank due to the ongoing WeWork woes. Hang Seng (-0.3%) and Shanghai Comp. (Unch.) trades lacklustre as participants mulled over the latest trade rhetoric in which an official stated the US is unlikely to extend temporary waivers to supply Huawei although reports later noted no decision has been made and US-China talks are to resume on October 10th-11th, while the latest data provided no comfort as Chinese Industrial Profits contracted by 2%. Finally, 10yr JGBs were higher with mild support seen amid underperformance of stocks in Tokyo but with the gains in bonds capped by predominantly weaker results at the 2yr JGB auction.

Top Asian News

  • China Misses Out on Entering FTSE Russell Global Bond Index
  • China Markets May Benefit From Latest Rules on Wealth Products
  • Bond Stress Mounts in China’s Qinghai Province as Sale Fails
  • Two Emerging Markets Are Ready for the Next Global Recession

Major European indices are firmer this morning, with the FTSE 100 (+1.2%) leading the way after dovish comments from BoE Hawk Saunders caused Sterling to slip. Sectors are all in the green bar IT, which is hampered by broad-based downside in European chip names following Micron’s earnings last night where their EPS guidance missed exp. and they noted near term macro and trade uncertainties. Elsewhere, Commerzbank (+1.5%) are subdued as the Co. state they no-longer anticipate an increase in underlying revenue for 2019; although, they have launched a public acquisition offer for Comdirect Bank at EUR 11.44/shr. Sticking with Germany but moving into the DAX (+0.9%) where BASF (+3.0%) have confirmed their mid-term outlook and the additional EUR 2bln in savings by 2021; additionally, the CEO anticipates an Oil and Gas IPO in H2 2020. Separately, Rheinmetall (-2.3%) are weaker after reporting that production in the US, Mexico and Brazil has been severely impacted by a malware attack. Today’s notable in-hours story is from AMS (-7.5%) who have submitted their final offer for Osram Licht (+3.3%) in which they have increased their offer by EUR 2.50/shr for the Co.

Top European News

  • U.K. May Need Rate Cuts Even If It Avoids No-Deal, Saunders Says
  • Imperial Brands Prepares Strategy to Deal With Investors
  • Funding Blow Deepens Pain for Ukraine Leader Reeling From Trump
  • Italy Weighs VAT Changes, Penalty on Cash as Conte Seeks Revenue

In FX, the Pound is the marked G10 laggard after BOE MPC-hawk Saunders surprisingly took a more dovish stance as he stated that looser monetary policy could be warranted amid “prolonged high Brexit uncertainty” coupled with disappointing global growth and as the adverse effects of  high uncertainty is becoming clearer in domestic macro data. Saunders also noted that in the even the UK avoids a no-deal, rates could go either way, i.e. a rate cut is still on the table in the event a no-deal Brexit is averted. Cable gave up the 1.2300 handle (from around 1.2330) to an intraday low of 1.2270 ahead of its 50 DMA at 1.2262. Meanwhile the EUR is flat on the day after the earlier softness in the single currency was countered by an even softer Sterling post-Saunders. Meanwhile, the EUR initially felt pressure amid an interview by ECB-dove Lane who stated the ECB has further room to ease and that the stimulus package announced was a relatively smaller one in his opinion. EUR/USD resides around 1.0925 having visited a low of 1.0905 ahead of reported bids at the psychological 1.0900 level, 1.0880-90 and a Fib at 1.0864. EUR/GBP remains firm just under 0.8900 having hit an intraday high of 0.8896.

  • DXY – Firmer on the day with the index eyeing YTD highs of 99.37 having already reached an intraday peak at 99.31. The Dollar gains seen recently are in the absence of clear catalysts, although market participants point to month and quarter-end as a potential factor. UBS notes that foreign equities, particularly Japanese, have outperformed US stocks in September, which “implies that hedge rebalancing pressures could favor the US dollar”. Meanwhile, the weakening Euro amid further deterioration in the EZ may also be underpinning the Greenback. DXY currently resides just below 99.25 ahead of the YTD peak. USD/JPY meanwhile has breached 108.00 to the upside amid the strength in the Buck (ahead of the September high at 108.48 and the psychological 108.50). Looking ahead, the State-side docket sees the release of the Core PCE metrics alongside Durable Goods with Fed’s Quarles (voter) and Harker (non-voter) due to speak later.
  • AUD, NZD – The Aussie bucks the trends and remains firm ahead of next week’s RBA rate decision. Money markets are currently pricing in around a 78% chance of a 25bps cut, although support for the currency could be derived from Morgan Stanley’s call for the RBA to stand pat until further economic data is available, whilst firmer copper prices also underpin the currency. AUD/USD is back above the 0.6750 level whilst AUD/NZD tested 1.0750 to the upside (vs. low of 1.0720), in turn pressuring NZD/USD back below 0.6300.
  • SEK – The Scandi Crown remains weaker against the Euro amid disappointing retail sales which saw the MM and YY figures miss forecasts. EUR/SEK breached its 50 DMA at 10.6898 and now eyes 10.6900 to the upside having printed an intraday low at 10.6520.

In commodities, WTI and Brent futures fell deeper into negative territory as the geopolitical risk premium unwound further amid reports that Saudi Arabia has agreed to establish a partial ceasefire in Yemen which follows reports of US aiding Saudi Arabia bolster its defences. The WSJ article took WTI below the 56.00/bbl mark and under the cluster of DMAs including its 50 DMA (56.02/bbl), 100 DMA (56.63/bbl) and 200 DMA (56.66/bbl), whilst Brent lost the USD 62.00 handle. Elsewhere, gold prices are on the backfoot amid a firmer Greenback as the yellow metal dips below the 1500/oz mark to a current low of 1491/oz. Meanwhile copper prices are firmer with upside attributed to signs of progress in US/China trade talks with a date now set for principal level talks, according to sources. Copper is back above USD 2.58/lb ahead with the next level to the upside the psychological 2.60/lb mark.

US Event Calendar

  • 8:30am: Durables Ex Transportation, est. 0.2%, prior -0.4%
  • 8:30am: Personal Income, est. 0.4%, prior 0.1%
  • 8:30am: Real Personal Spending, est. 0.2%, prior 0.4%
  • 8:30am: PCE Deflator MoM, est. 0.1%, prior 0.2%; PCE Deflator YoY, est. 1.4%, prior 1.4%
  • 8:30am: PCE Core Deflator MoM, est. 0.2%, prior 0.2%; PCE Core Deflator YoY, est. 1.8%, prior 1.6%
  • 8:30am: Durable Goods Orders, est. -1.0%, prior 2.0%
  • 8:30am: Personal Spending, est. 0.3%, prior 0.6%
  • 8:30am: Cap Goods Orders Nondef Ex Air, est. 0.0%, prior 0.2%; Cap Goods Ship Nondef Ex Air, est. 0.25%, prior -0.6%
  • 10am: U. of Mich. Sentiment, est. 92.1, prior 92; Current Conditions, prior 106.9; Expectations, prior 82.4
  • 10am: U. of Mich. 1 Yr Inflation, prior 2.8%; 5-10 Yr Inflation, prior 2.3%

DB’s Jim Reid concludes the overnight wrap

I had a day trip to Germany yesterday and it was pouring with rain when I boarded the plane and it started again as I landed and didn’t stop all day. Basically since Sunday all I’ve known is rain. It makes a mockery of the decision I made on Saturday when after scattering a garden ruined by builders with grass seeds, I slowly and meticulously sprayed it with water. A few hours later it hardly stopped raining for four days. That’s 90 minutes of my life I won’t get back.

I feel the same about politics at the moment. I’m glued to the political machinations on both sides of the Atlantic even if I know it’s not going to progress my understanding of life and markets very much. Indeed the direction in markets at the moment is either dictated by trade, the impeachment drama or a combination of both. Well yesterday the impeachment news won out initially after the whistle-blower complaint was released before headlines suggesting that the US is unlikely to extend a temporary waiver for US companies to continue supplying Huawei then took over.

The end result was a slide for US equity markets with the S&P 500 closing down -0.23% (but off its lows) and the NASDAQ down a slightly heavier -0.58%. That’s four down days out of the last five for the S&P 500 although to be fair the magnitude hasn’t been all that impressive with the index still within just 1.58% of the all-time highs. Both indexes closed above their lows after an afternoon rally which briefly sent the S&P 500 into positive territory, boosted by optimistic trade comments from Chinese Foreign Minister Wang who said that the US has shown good will and that he hopes “talks will not only resume but will proceed and yield results.” There were further positive indications from top US economic advisor Kudlow, who spoke positively about the scope for passing the USMCA this year despite the impeachment diversion. As for the substance of the impeachment issue, the main headlines which came out of the public release of the whistle-blower’s complaint was the reference to “lock down” records of the interaction and that White House officials were “deeply disturbed” by Trump’s call with the Ukrainian president. Overnight the Los Angeles Times published a private recording where Mr Trump has been accused of intimidation towards the whistleblower by saying that he was “almost a spy” and added “You know what we used to do in the old days when we were smart with spies and treason, right? We used to handle it a little differently than we do now.” Expect this story to go on for a while.

Back to markets, and there was some attention on the recent softness of IPOs after Peleton had the third-worst trading debut in ten years, according to Bloomberg. Despite selling shares at $29, they traded as low as $24.75 and closed -11.17% at 25.76. New equity issuance has decelerated to the slowest pace since 2016 so far in 2019, the FT reported. Further, with the reported delay in Saudi Aramco’s listing, attention is focusing more and more on pre- and post-IPO companies. An ETF of IPOs has underperformed the broader market by 12.89% since its July peak. It’s notable that the last time this index of new issuances lagged by such a margin, it was just before the Oct-Dec sell-off last year. Overnight, Micron Technology gave a disappointing quarterly profit forecast and warned that global trade tensions may prolong a memory-chip industry slump. Shares were down c. -7% in after hours trading.

Despite the softness in equities, volatility remained muted with the VIX ending at 16.1 (+0.1pts), though the risk off sentiment did drive a steady bid for safe havens with 2y and 10y treasury yields rallying -2.2bps and -4.2bps respectively. The USD (+0.17%) gained slightly, while EM currencies struggled, especially the Mexican peso (-0.52%) after Banxico cut rates and gave more dovish than expected policy guidance. There was some action later in the day following a number of Fedspeakers, and thankfully a distraction from the politics. Front and centre was Clarida who, speaking at a Fed Listens event, said that inflation is running close to the 2% target and that inflation expectations are a level consistent with price stability. He also spoke about the potential outcomes of the Fed’s policy review, saying that “make-up strategies lead to better average performance” in models, but it’s not clear if those outcomes would carry over to the real world. After the US markets closed, Richmond Fed President Barkin, a known hawk, said that the recent rate cuts don’t “mean a recession is imminent, nor that we are in a prolonged period of easing.”

Overnight, Asian markets are trading largely lower with the Nikkei (-1.30%) leading the declines as a large number of companies are trading ex-dividend while the Hang Seng (-0.30%) and Kospi (-1.15%) are also down. The Shanghai Comp and CSI 300 are trading flat. The above mentioned overnight report from the LA Times is helping to slightly dampen sentiment this morning.

In other overnight news, the Sun has reported that three UK cabinet ministers are preparing to push for Boris Johnson to lower his demands over Brexit talks after the Tories’ annual conference in Manchester next week. The report added that they will demand that he abandons senior aide Dominic Cummings’s aggressive strategy and accept any last-minute offer from the EU. Meanwhile, the FTSE Russell index decided not to include China’s domestic debt in its flagship World Government Bond Index, citing concerns including liquidity and settlement of trading, and added that China will remain on the FTSE Russell’s watchlist. The company said in its statement that further updates will come “as appropriate after the interim review in March 2020.” The decision comes as a bit of surprise after the Bloomberg Barclays Global Aggregate bond index decided to include Chinese debt in April and JPMorgan earlier this month decided it will start a phased inclusion of Chinese sovereign debt into its emerging-market indexes from the end of February. Elsewhere, Turkish President Tayyip Erdogan said that it was impossible for Turkey to stop buying oil and natural gas from Iran, despite the threat of US sanctions, and added that trade between the two countries would continue. The Turkish lira is trading (-0.11%) down this morning.

Back to yesterday and the third Q2 GDP reading in the US was unrevised at +2.0% qoq however there was a surprising upward revision to Q2 core PCE to +1.9% qoq from the previous forecast of +1.7%. With that in mind it’s worth noting that we get the August PCE data this afternoon where the consensus expects a +0.2% mom core reading, which would push the annual rate up two-tenths to +1.8% yoy. Yesterday’s data could provide some upside risks to that though. It would be ironic if inflation started to come through just as everyone has given up on it.

As for the other data yesterday, the August advance goods trade balance showed a deficit of $72.8bn which was a tad smaller than expected. Wholesale inventories rose a better than expected +0.4% mom (vs. +0.1% expected), jobless claims remained at a lowly 213k, August pending home sales rose +1.6% mom (vs. +1.0% expected) and the September Kansas City Fed manufacturing survey was a bit better than expected having risen 4pts to -2 (vs. -4 expected).

In Europe, and specifically over at the ECB, Reuters reported that Lautenschlaeger sent an internal email to ECB staff suggesting that her decision to resign early from the board “was probably the result of professional, rather than personal, considerations”, which as expected more than likely reflects an opposition to the September stimulus programme. Data showed a 5.7% yoy increase in the M3 money supply, better than expected, which pointed to another healthy expansion in bank credit flows. The credit impulse rose 0.6pp to the highest level in four months. European equities finished onside yesterday with the STOXX 600 up +0.61% while 10y Bunds were little changed.

Looking at the day ahead, data due this morning in Europe includes the preliminary September CPI report in France and September confidence indicators for the Euro Area. In the US the focus will be on the aforementioned August PCE report, while preliminary August durable and capital goods orders data will also be important to watch. The August personal income and spending prints are also due along with the final September University of Michigan consumer sentiment survey revisions. Away from that, the Fed’s Quarles and Harker will speak along with the ECB’s Guindos, Knot and Lane.

 

3A/ASIAN AFFAIRS

I)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 3.08 POINTS OR 0.11%  //Hang Sang CLOSED DOWN 87.12 POINTS OR 0.33%   /The Nikkei closed DOWN 169.37 POINTS OR 0.77%//Australia’s all ordinaires CLOSED UP 54%

/Chinese yuan (ONSHORE) closed UP  at 7.1266 /Oil DOWN TO 55.84 dollars per barrel for WTI and 61.94 for Brent. Stocks in Europe OPENED GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 7.1266 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 7.1224 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 ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

North Korea

After a lack of progress on the uSA side of things, North Korea now raises doubts on the possibility of future uSA talks

(zerohedge)

After Lack Of US Progress, North Korea “Doubts Possibility Of Future US Talks”

Just a few minutes after US Secretary of State Mike Pompeo confirmed that the United States has not been able to arrange working-level meetings with North Korea in September – since negotiations aimed at dismantling North Korea’s nuclear and missile programs have stalled since a failed second summit – Korea’s Central News Agency reported North Korean officials issued a statement that “the prospects for future talks are not bright.”

This comes after Pompeo said at a news conference in New York, where he attended the United Nations General Assembly this week:

“We have see these public statements that we were hopeful that there would be working level meetings by the end of this month … we’ve not been able to make those happen and we don’t have a date yet when we will be able to get together.”

 

Notably, North Korean Foreign Minister Ri Yong Ho did not attend the annual gathering of world leaders, having done so for the past three years.

“Our team is prepared to meet with them, I think it’s important that we do,” Pompeo added.

As Reuters reports, North Korea said this month it was willing to restart nuclear talks with the United States in late September but warned that dealings between the sides could end unless Washington adopted a fresh approach. The concessions the United States has so far offered North Korea publicly have reportedly fallen far short of its expectations.

Full Statement (via KCNA)

I’m interested in watching the recent seasoned talks in the United States.

The meetings and congresses of the seasons that have been conducted so far have become historical histories that marked the political will of the leaders of the two countries to end hostile seasoned relations and to bring peace and stability to the Korean peninsula.

However, the prospects for future talks are not bright, as the actual movement to carry out the problems agreed at the talks cannot be followed.

In order to build trust among the US and to implement the US Joint Statement, we have made a sincere effort to return Americans detained and to repatriate US remains.

The United States, however, did nothing to implement the joint statement. Rather, it regressed the US-Korea relations by resuming joint military exercises where the president pledged to stop and strengthening oppression against anti-communist forces.

I still have a different seasoning in the situation where Washington still claims that we should give up our nuclear weapons first so that we can get a bright future. We still have a view that the sanctions mislead us into dialogue. The opening of the talks does not dispel skepticism whether a new breakthrough will be made in the US-Korea relations.

I came to know that President Trump is different from his predecessors in political sense and decision while watching his approach to the DPRK, so I would like to place my hope on President Trump’s wise option and bold decision.

Me and our Foreign Ministry will keep an eye on the future trends of the United States.

Sounds fairly final to us, but then again, 38North’s Joseph Detrani has some vastly more experienced views on how to negotiate with North Korea...

The thirteen years (2003-2016) I invested in negotiations with North Korea in different capacities—Special Envoy, Associate Director of National Intelligence and as a private citizen—have made me guardedly optimistic that a peaceful resolution of issues with North Korea is possible. The US has successfully concluded agreements during the past twenty-five years of on-and-off negotiations with North Korea, notably the Agreed Framework of 1994, the Six Party Talks Joint Statement of September 19, 2005 and the “Leap Day Agreement” of February 29, 2012. From these experiences, we learned a lot about North Korea’s determination to have a normal relationship with the US and to be accepted as a nuclear weapons state; we also got to know the North Korean negotiators, many of whom we have been negotiating with since 1994. Conversely, over this period, North Korea acquired a better understanding of US intentions, while also getting to know our negotiators, who routinely rotated every few years. Although past achievements, after extensive negotiations and partial implementation, eventually collapsed, they offer important lessons that can help guide US negotiators through the thicket of obstacles they will confront in achieving US goals with North Korea.

Survival of the Leadership Is Paramount

Over the past 2,000 years, Korea has been invaded often by China, Russia, Japan and Mongolia. To survive against these powerful and aggressive neighbors, Korea had to be militarily strong and self-reliant. It is no surprise, therefore, that over the past 65 years North Korea has pursued a “military first” policy, highlighted by Kim Il Sung’s pursuit of nuclear weapons in the 1950s. Kim Jong Un has continued this tradition. He views a strong military, especially one with nuclear weapons and missile delivery systems, as the ultimate deterrent to the US or any country that may want to attack or remove the regime in North Korea, and thus essential to his survival and the preservation of the Kim dynasty. Simply put, getting Kim to agree to complete and verifiable denuclearization will continue to be a challenge.

Distrust of the US Persists

Since the end of the Korean War in 1953, North Korea has been convinced that the US was seeking regime change in the North. Even in negotiations, and regardless of the agreements reached, North Korea has seen US policy as hostile and harbored distrust of US security assurances. US statements that North Korea should follow the Libyan denuclearization model have reinforced the views of hardliners in Pyongyang that regime change is Washington’s ultimate objective, regardless of any agreement with the US. I lost count of the number of times I was told that North Korea will never follow the Libyan model, which they viewed as a US effort to topple the Gaddafi regime.

Tearing down this wall of North Korean distrust remains a considerable challenge, but progress can be made. For example, during the plenary sessions of the Six Party Talks in August 2003 and February 2004, our delegation was instructed to avoid one-on-one meetings with the North Korean delegation and to refrain from any private discussions with DPRK officials. The efforts US Assistant Secretary of State James Kelly and I made during these talks to engage our North Korean interlocutors in private discussions, notwithstanding our official instructions, engendered a more open and professional relationship and helped to build some trust. During the February 2004 meeting, at China’s Diaoyutai State Guesthouse, with Vice Foreign Minister Wang Yi as the host, Jim Kelly and I decided that we needed private talks with the North Korean delegation, similar to the private meetings we had with the other delegations, to discuss some of the issues that were on the table. At our request, Wang Yi provided a room for these private discussions with North Korea’s Vice Foreign Minister Kim Kye Gwan. I’m confident North Korea appreciated this outreach on the part of the US delegation. Although these talks didn’t produce any appreciable progress on the substantive issues, I believe they contributed to Pyongyang signing the September 19, 2005 Joint Statement, which committed North Korea “to abandoning all nuclear weapons and existing nuclear programs and returning, at an early date, to the Treaty on the Non-Proliferation of Nuclear Weapons and to IAEA safeguards.”

North Korea Wants Nuclear Weapons And Normal Relations with the US

A constant refrain I heard from my North Korean interlocutors through the years is that a normal relationship with the US would give the North greater access to the international community and facilitate foreign direct investment and trade, as well as permit North Korea to be less dependent on China. Indeed, North Korea’s mistrust of the US notwithstanding, Pyongyang’s ultimate objective is to have normal relations with Washington, and it has urged the US to accept it as a nuclear weapons state. Over the past two decades, senior North Korean officials have repeatedly stated that the North will never use nuclear weapons against the US or any other country, that nuclear weapons are a necessary deterrent for a vulnerable North Korea, that the US should treat North Korea as it treats Pakistan and that North Korea can become a good friend of the US. Washington’s response has been consistent: The US will never accept North Korea as a nuclear weapons state because of WMD proliferation concerns—specifically, a nuclear North Korea could spur other countries in the region to pursue nuclear weapons programs, increasing the risk that a weapon or fissile material would find its way to a rogue state or terrorist organization, with catastrophic consequences. I believe this consistent US response resonated with our North Korean interlocutors.

Personal Relationships Are Important

North Korean negotiators who meet with the US have spent their professional careers working on these issues. By contrast, US officials who interact and negotiate with North Korea routinely change. Given the years of hostilities between our countries, this rapid personnel turnover makes it more difficult to establish personal relationships that are conducive to building trust and confidence between our negotiators, which requires considerable time, continuity and patience. Having negotiated with North Korea during the Six Party Talks, I spent hundreds of hours in task force and plenary session meetings in Beijing and frequently used the “New York channel,” and  was able in 2009, at the request of the US State Department, to use these interactions to engage in countless hours of negotiations with senior officials in Pyongyang to secure the release of journalists Euna Lee and Laura Ling and arrange for US President Bill Clinton to visit Pyongyang to finalize their release and return to the US. In 2011 and 2012, when I was Director of the National Counter Proliferation Center, the White House asked me to visit Pyongyang to meet with senior officials to discuss US concerns with North Korea’s highly enriched uranium program and to warn Pyongyang not to sell missiles and other weaponry. This engagement was possible because of my years negotiating with North Korea and establishing relations with senior officials in their Ministry of Foreign Affairs and other agencies. I can’t emphasize enough the importance of a good working relationship with counterparts in North Korea. This creates the trust necessary to have a dialogue and hopefully move forward on issues affecting relations with North Korea.

Confronting North Korea with Ultimatums Doesn’t Work

Being candid with North Korea is necessary, but any language that threatens North Korea with punitive consequences if it does not accept a US proposal will engender a defiant response or a cessation of negotiations. I’ve been in meetings when such rhetoric was used and the North Korean response was consistent and predictable. In fact, during the first round of Six Party Talks with North Korea, they were told that, in addition to nuclear weapons and facilities disablement, they would not be permitted to have a nuclear program for civil energy. North Korea balked, which explains why the 2005 Joint Statement declared that: “The DPRK stated that it has the right to peaceful uses of nuclear energy. The other parties expressed their respect and agreed to discuss, at an appropriate time, the subject of the provision of light water reactor [for civil energy] to the DPRK.” Not surprisingly, North Korea is very sensitive to threats from powerful countries or attempts to infringe on its sovereign rights.

Be Resolute on the Need for Complete and Verifiable Denuclearization

Any wavering on the part of the US on the need for North Korea’s complete and verifiable denuclearization will encourage some in the DPRK to believe that eventually the US will relent and permit the North to retain at least some of its nuclear weapons and/or nuclear weapons facilities. North Korea has spent billions of dollars and decades establishing a robust nuclear weapons program. To expect Kim to walk away from this program, without providing North Korea with the security assurances it seeks, a path to normal relations with the US and the lifting of sanctions, is unrealistic. Moreover, if the US makes clear that these deliverables would be available to North Korea with complete and verifiable denuclearization, it would be fair to assume that Kim might be willing to move forward with the US, pursuant to the June 12, 2018 Singapore Joint Statement that commits North Korea to complete denuclearization. Ultimate success will be the actual implementation of a negotiated agreement, ensuring North Korea receives the promised deliverables in return for progress with denuclearization and agreement on a detailed action-for-action road map with timelines.

Implementation of Any Agreement Will Take Years and Verification Is Key

Given the complexity of North Korea’s plutonium and uranium enrichment programs, and the verification challenges to ensure compliance with its denuclearization commitments, implementation of any agreement will take considerable time. Washington will need to work with the International Atomic Energy Agency (IAEA), probably China and Russia and other nuclear weapons states who can assist with the dismantlement of nuclear weapons and the disablement of nuclear weapons facilities. Verification will be a major challenge with any agreement. In 2009, implementation of the September 19, 2005 Joint Statement that committed North Korea to complete denuclearization came to an abrupt halt when North Korea refused to sign a verification protocol permitting nuclear monitors to visit non-declared suspect nuclear sites. At North Korea’s insistence, that was the end of the Six Party process that started in 2003.

Conclusion

These are just some of the lessons learned from years of negotiations and talks with North Korean officials. Hopefully, as we enter into working-level negotiations, we will benefit from all we have learned from these experiences.

end

 

b) REPORT ON JAPAN

 

3 C CHINA

My goodness, the protests have caused serious problems in Hong Kong.  Hotel rooms have gone down in some places to only 9 dollars per night

(zerohedge)

Hong Kong Hotels Slash Prices As Protests Deter Tourists: Cheapest Room Now Just $9

Hong Kong was until very recently the world’s most expensive housing market, featuring sky-high rents and cramped apartments as small as 100 square feet. But thanks to the pro-democracy protests that have disrupted the city-state’s economy and ushered in a new wave of political uncertainty and chaos, many of Hong Kong’s most critical industries have seen serious disruptions, especially tourism.

Earlier this month, Hong Kong’s financial secretary revealed that tourism had plunged more than 40%  during the month of August, compared with August 2018, the biggest drop since the SARS epidemic of 2003.

As visitors dry up, hotels are being forced to slash rates to try and attract clientele. And some of these cuts have gotten pretty steep.

For example, a “new low” for a hotel booking has been spotted by the South China Morning Post: HK71 – or about $9. 

At that price, living in that hotel would be less expensive than one of the city’s subdivided apartments.

At a new low of HK$71 (US$9.06) a night, some hotels are now cheaper than subdivided flats in the city. Winland 800 Hotel in protest-hit Tsing Yi, is offering that rate on weekdays through the Wing On Travel website. It represents a decline of 65.7 per cent from its lowest rate of HK$207 a night in March 2018.

In response, hoteliers and other business owners in the hospitality and tourism industry are asking the Hong Kong government for help in the form of rent and bank-loan interest waivers, arguing that their industries have been the hardest hit by the demonstrations. The city’s Housing Authority has already cut rent for the city’s retail tenants in public housing, while HSBC offered rebates on loans from small and medium-sized companies in the city that have been struggling because of the protests.

Jhunjhnuwala said the tourism industry had been hit hardest, and that the government should waive rents and rates for at least a year, set up a short-term fund to help the hotel industry, give visitors incentives, such as special rates, to stop over in Hong Kong for a day or two, and instruct banks to waive interest on loans borrowed by hotels.

“It’s devastating to see the effect the recent situation in our city has had on local businesses, particularly on those of us in the hospitality industry,” he said, adding that the occupancy rate of “most hotels in Hong Kong was down 30 per cent to 40 per cent” on year, with some even down to 20 per cent.

Jhunjhnuwala, whose company employs more than 190 people in Hong Kong, said frontline staff might unfortunately face reduced hours, reduced wages or, in some cases, even redundancies.

Hoteliers have made another unusual request: Asking the government to allow the hotels to sell or lease hotel room as if they were condos. Their argument is simple: The city is struggling with a housing shortage and an overhang of unoccupied hotel rooms.

“If the government recognizes there is a need for housing for the young, it ought to…relax the rules, [permitting] hotel rooms with kitchens, to be rented over 28 days, with hotel rooms saleable to individual buyers, like anywhere else in the world,” he said.

Cheng also said converting industrial buildings into hotels that can be leased or sold for residential use “can potentially supply more than 500,000 units speedily” and ease the housing crisis in Hong Kong, the world’s most expensive property market.

“Each traditional industrial location, such as Kwun Tong, Tsuen Wan, Kwai Chung, Tsing Yi island, Aberdeen, Yuen Long and Tuen Muen, must have more than 200 rundown industrial or warehouse buildings, making it a total of more than 1,000 buildings,” Cheng said.

“Each industrial or warehouse building is normally large and can be rebuilt, or renovated, to more than 500 rooms. Therefore, there is potential for more than 500,000 hotel rooms for accommodation if there is demand.”

If you’ve always wanted to visit Hong Kong, and wouldn’t mind a bit of ‘excitement’ in the form of street warfare between protesters and police, there has never been a better time than now to plan a trip to Hong Kong. If you move quickly, you just might be able to get there in time to watch the People’s Liberation Army forcefully suppress the protests before the Communist Party’s 70th birthday on Oct. 1.

end
This is huge: a shocked Wall Street reacts to Trump’s latest threat of cancelling the listing of Chinese companies as well as restrict uSA companies dealing in China
(zerohedge)

“This Is Huge”: A Shocked Wall Street Reacts To Today’s “Ludicrous” China Threat

And to think just earlier this morning we were mocking the complacent market – and this Reuters headline – for justifying the latest overnight levitation in risk assets.

Just like last Friday, when out of the blue stocks tumbled when suddenly it appeared that a trade suddenly was far less likely after China canceled its trip to Montana and Nebraska, just before noon risk took a plunge when Bloomberg reported that the Trump administration was considering delisting Chinese companies from US stock exchanges and limiting Americans’ exposure to the Chinese market through govt pension funds, sending shares of some marquee Chinese companies including Alibaba and Baidu tumbling, and sparking yet another shocked among Wall Street analysts, which ranged from ignore this news, it’s just “another market burp” as Trump will “have a hard time making the case for capital controls” to “this is not little stuff… this is huge”, and serves as a “harsh reminder that we could very easily see trade talks fall apart next month.” Some even suggested that if Trump will limit US investment into Chinese stocks, Beijing may retaliate with its own nuclear weapon, and dump some or all of its US Treasury holdings: “You know those Treasury bonds you’re issuing? We don’t want so much of that anymore.”

And despite some marginal difference as to the severity of today’s news, all analysts appeared to agree that today’s news “opens up a new front in the U.S.-China trade conflict” and the only question is whether these are “just loose headlines with U.S. capital flows used as a bargaining chip, or whether the threat is real.”

We are confident that Trump’s twitter feed will give us the answer soon enough.

Below is a summary of some more notable Wall Street reactions, courtesy of Bloomberg and others:

Jennifer Ellison, principal at San-Francisco based BOS:

This is not little stuff. This is huge. The cost of tariffs on the economy, the impact on growth around the world when you don’t have trade flowing, the potential impact of China getting really mad and looking at us and saying ‘You know those Treasury bonds you’re issuing? We don’t want so much of that anymore.’ There’s a lot more potential downside than there is upside when this is all resolved. To say ‘We’re closing the gates, you can’t invest your money outside U.S. borders, it’s just ludicrous. The market is a little tired of it.”

Ed Moya, senior market analyst at Oanda:

“Just like we saw in the previous lead-up to high-level talks in the past, the White House is trying to increase their negotiating chip count with a fresh threat that could cripple Chinese companies,” he said. “The limitation of American pension funds access to Chinese markets would see massive portfolio swings that spells disaster for the tech sector. This threat is harsh reminder that we could very easily see trade talks fall apart next month.”

Ed Al-Hussainy, a strategist at Columbia Threadneedle:

“This one is a non-starter. Even this administration will have a hard time making the case for capital controls at this scale. Just another market burp.”

Alan Ruskin, chief international strategist at Deutsche Bank AG:

This policy risks reciprocity from China, where China is of course a much bigger player in U.S. portfolio markets, than the U.S. is in China. In general, headlines like this also suggest that U.S.-China relations remain extremely tense, so not a great sign on the state of the trade negotiations. These headlines help assets that do well in ‘risk-off’ like gold, Swissie and yen. The euro likely also benefits in part as China could in theory search for alternative liquid markets,” he said. “One important caveat to above is we need to see if these are just loose headlines with U.S. capital flows used as a bargaining chip, or whether the threat is real.”

Zach Pandl, co-head of global FX and emerging-market strategy at Goldman Sachs Group Inc.:

The news opens up a new front in the U.S.-China trade conflict. Looks likely to weigh on the yuan and neighboring currencies, and support safe havens, especially the yen.”

Mike Collins, senior portfolio manager at PGIM Fixed Income:

“It’s another example of how every time people think this trade war is deescalating, it escalates again,” he said. “We’re in this for the long run. There’s no end in sight.”

Brad Setser, senior fellow at the council on foreign relations.

Some argue that the US has leverage because China needs US financial investment.   I am not at all convinced.  China has plenty of domestic savings — its problem has been putting that to good use.   It doesn’t need to import savings and China’s current account surplus has been rising (along with China’s trade surplus) this year — China is on net still a capital exporter.

4/EUROPEAN AFFAIRS

Gatestone provides their analysis of where we are with respect to the Brexit

(Gatestone)

UK: Brexiteers Vs Remainers, Gambling At The Last Chance Saloon

Authored by Andrew Ash via The Gatestone Institute,

The latest twist in the UK’s ongoing battle to leave the European Union has — unsurprisingly — reached yet another impasse. The supreme court has ruled that British Prime Minister Boris Johnson’s suspending of Parliament was unlawful because it “had the effect of frustrating parliament.” He was also accused of giving unlawful advice to the Queen in asking her for permission.

As is routine for a newly appointed PM, Johnson suspended Parliament in order to announce his domestic agenda with a Queen’s Speech. Furious Remainers claim that he shut it down to prevent Parliamentary scrutiny of his plans to leave Europe — with or without a deal. The suspension, which infuriated his foes, was the latest move in an ongoing battle to deliver Brexit — in spite of the opposition’s determined refusal to accept the will of the people.

 

Johnson’s detractors, inevitably, have leapt upon the decision, passed by a panel of eleven judges, to void his decision to prorogue — or suspend — Parliament. The Labour Party, led by Jeremy Corbyn, have called for Johnson’s resignation, and demanded a new election. Mr Johnson — who is currently in New York on his first UN summit — has steadfastly refused to stand down.

The ruling comes as a blow to the PM, who has set a deadline of October 31 to leave the European Union. The opposition camp, having already succeeded in obstructing Britain’s exit from the EU for three years, have now won themselves extra time in which to block the path of democracy.

As a result of the judges’ decision, MPs have now been called to return to the House of Commons “as a matter of urgency” by one of Johnson’s most staunch opponents, Speaker of the House John Bercow, who “welcomes” the Supreme Court’s judgement.

Bercow, a former Conservative, along with his anti-Trump rhetoric, has thrown his all into preventing Brexit from happening ever since the referendum result in 2016, even going so far as to display a “Bollocks To Brexit” sticker on his car.

Shadow PM Jeremy Corbyn, clearly revelling in the latest turn of events, which come at the start of the Labour Party’s annual conference in Brighton, said after the ruling, “I invite Boris Johnson to consider his position and become the shortest serving PM there has ever been.”

European Union members, somewhat inevitably, have also expressed their unbridled joy at the Supreme Court’s decision to overturn Johnson’s suspension of Parliament, and once again thwart the democratic rights of the people of Britain.

Member of European Parliament Guy Verhofstadt, oblivious to the irony of his statement, commented:

“At least one big relief in the Brexit saga: the rule of law in the UK is alive & kicking. Parliaments should never be silenced in a real democracy.

“I never want to hear Boris Johnson or any other Brexiteer say again that the European Union is undemocratic.”

Mr Johnson, however, insists that the suspension was not obstructive, but necessary, and insisted that MPs were only losing “four or five days of parliamentary scrutiny, when parliament has had three years to discuss the issue.”

Despite the hyperbole from the likes of Jeremy Corbyn and John Bercow, however, the prime minister cannot be forced out of office by this week’s ruling, although it does leave him open to a potential vote of no confidence when Parliament reconvenes — which would make the likelihood of a general election far more likely — quite possibly within weeks. This tactic would be quite a gamble for the Remainers: if the Conservatives win, even if it means forming an alliance with Nigel Farage’s Brexit party, it would cause the very same “no deal Brexit” to which his detractors claim to be so opposed.

The opposition seem nevertheless willing to take the gamble: they are running out of alternative methods to hold up proceedings for much longer. Anything and everything is apparently in the cards for the obstructionists, whose true agenda appears to be not to work out a Brexit deal at all — but to ignore the referendum result, and for the UK to remain in the untransparent, unaccountable and un-unelectable EU.

END
Brexit and the slumping European economy is forcing Jaguar Land Rover to halt production
(zerohedge)

Brexit Chaos Forces Jaguar Land Rover To Halt Production At UK Factories For A Week 

The UK’s manufacturing sector is quickly scaling back investments and output at a time when the economy is nosediving. Jaguar Land Rover reported Thursday that it would halt car production at its factories in November for a week amid slumping economic conditions and ahead of a Brexit crisis.

Jaguar Land Rover joins BMW and Toyota in emergency preparations to help mitigate any supply chain disruptions from a no-deal Brexit.

Carmakers are also dealing with declining domestic and export orders despite a weakening pound.

The British manufacturing sector is a critical component of the UK economy, employing over 2.7 million people and accounting for 50% of UK exports.

While manufacturing has seen nearly a decade of growth, it could be all coming to an end as Brexit anxieties have pushed UK manufacturing’s output to a 15-month low earlier this year.

Manufacturing remains on a cliff-edge, which uncertainty around Brexit has pushed carmakers into becoming extremely defensive in the next several months.

Prime Minister Boris Johnson has said Britain would exit the EU, with or without a deal, on October 31.

Jaguar Land Rover Chief Executive Ralf Speth said emergency plans have already been enacted, production halts at four British factories will occur during the first week of November.

“I need 20 million parts a day and that means I have to make commitments to my suppliers, I have to have every and each part available and I have to have it just in time,” Speth said.

Toyota in August said it would not make cars at its British factory in the first week of November. BMW said the same as well.

Brexit developments have unquestionably exacerbated the economic slowdown in the UK. This means that the world’s fifth-biggest economy is in danger of entering a recession if the Brexit turmoil intensifies in the coming months.

END

LATE IN THE DAY:  UK

As we continue to pound the table, the WeWork situation is an accident waiting to happen

(zerohedge)

CREsh Begins: London Property Market Hit As WeWork Deal Falls Through

In an ominous sign for the commercial real-estate market, a large Singaporean investment firm has walked away from an £850 million ($1.04 billion) deal to buy Southbank Place, an office building near London’s Waterloo Station that boasts one of the largest WeWork spaces in the world, the FT reports.

The deal collapsed shortly after WeWork called off its IPO, and is now scrambling to sell off businesses and assets like its corporate jet to raise capital. Since the offering was abandoned, not only is the company missing out on $3 billion that it was set to raise in the public markets, but it’s also losing out on a $6 billion loan that was contingent on the IPO.

Notably, this isn’t the only deal for a WeWork-occupied London office building that has fallen through recently.

Sources close to the deal blamed local factors like Brexit-related uncertainty and the expense of pulling out of a refinancing deal between the seller and an asset management firm that refinanced the development earlier this year. Supposedly, the seller, a firm with ties to Italy’s Agnelli family, backed out of the deal, despite having put the building on the market.

Southbank Place is located between the London Eye and Waterloo station.

But the notion that WeWork’s failed IPO didn’t factor into the decision at all is hard to believe.

Anyone who’s about to take on WeWork as a tenant must confront the fact that the company has $47 billion-plus in lease obligations (including $10 billion in the next 5 years) that it currently has no way to meet. If WeWork falls on hard times and pushes to renegotiate, or, worse, files for bankruptcy, these landlords could be screwed out of millions, if not billions.

Southbank Place includes a 280,000-square-foot WeWork shared office space. WeWork’s space in the building is mainly subleased to big corporate tenants such as HSBC, which rents 1,000 desks. The building also houses the London headquarters of Royal Dutch Shell.

At the price quoted by the FT, the deal would have been one of London’s largest this year, at a time when the London commercial property market has been struggling with a sharp drop in deals. Sales fell by more than one-third during the first half of 2019, compared with the same period a year earlier.

WeWork’s aggressive growth strategy has led it to open 528 locations in more than 110 cities, and the UK is one of its largest markets.

WeWork is the largest lessor of office space in NYC, Chicago, Denver, Central London and other major urban markets.

Because of this massive growth, WeWork poses a unique risk to the global commercial real-estate market. WeWork is already one of the world’s largest lessees, trailing only oil exploration giants Petrobras and Sinpec, an astonishing feat for the flexible office space provider “which was founded less than a decade ago, bleeds cash, and doesn’t plan to become profitable any time soon.”

In a WeWork bankruptcy, landlords would see their rental obligations frozen and squeezed among all the other pre-petition claims, which of course means that commercial real estate markets in cities where WeWork is especially active (see above) would suddenly find themselves paralyzed, unleashing a deflationary tsunami on one of the strongest performing markets since the financial crisis.

In case investors needed another sign of the market’s waning confidence in WeWork, the company’s bonds fell to a record low on Friday, following S&P’s decision to downgrade the company’s credit rating to B- due to “liquidity strains”.

Meanwhile, in a separate report, the FT revealed that WeWork has resumed signing leases – but at a much slower pace – since abandoning its IPO.

That’s not exactly a vote of confidence

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Iran/UK

the UK tankers seized by Iran, the Stena Impero was finally released today after two months in captivity

(zerohedge)

UK Tanker Seized By Iran Released After Two Months In Captivity

The British-flagged Stena Impero tanker was released Friday after more than two months of being moored outside Iran’s Bandar Abbas port.

Abas Aslani@AbasAslani

Footage showing oil tanker Stena Impero starting to move from Bandar Abbas port of for international corridor of Persian Gulf on Friday morning.

Embedded video

Stena Impero was seized in July by Iran in the Strait of Hormuz for alleged marine violations two weeks after British naval forces detained an Iranian tanker off the territory of Gibraltar.

“The ship is on the move,” Erik Hanell, the chief executive of the ship’s owner, Sweden’s Stena Bulk, told Reuters in a text message. “We will comment further when the ship reaches international waters.”

According to Refinitiv tracking data, the vessel is heading for Dubai’s Port Rashid in the United Arab Emirates. The automatic identification system, an automated tracking system that uses transponders on the ship, indicates the vessel is “underway using the engine,” traveling at 12 knots, and about 155 miles from Port Rashid.

The vessel is likely to reach its destination in about a day, is expected to make more headlines when the vessel hits international waters and arrives at Port Rashid.

The Ports and Maritime Organization of Iran in Hormozgan Province said in a statement the vessel left the Bandar Abbas port early Friday and was heading towards international waters. The statement added that a judicial file was still open on the ship.

Iranian President Hassan Rouhani, at a news conference Thursday in New York during the United Nations’ annual gathering of world leaders, told reporters he expected Stena Impero to be released after the completion of legal procedures.

“The tanker is going through the final court proceedings. I predict that it will be released,” Rouhani said at the UN on Thursday.

Stena Bulk said Wednesday there were zero negotiations with Iran and wasn’t informed of any formal charges against the crew.

“We haven’t been accused of anything,” Stena Bulk Chief Executive Erik Hanell said in a telephone interview. “Not through any formal letter or anything else to the company.”

Relations between the US and Iran have become tenser since Washington withdrew from the Joint Comprehensive Plan of Action, also known as the “Iran deal,” in May 2018.

The abandoning of the Iran deal resulted in the Trump administration imposing heavy economic sanctions on Tehran, a move that has paralyzed the country’s economy.

Earlier this week we reported how the US had imposed new sanctions on Chinese entities for “knowingly engaging” in transporting Iranian oil – the move is part of the Trump administration’s “maximum economic pressure campaign against the Iranian regime and those who enable its destabilizing behavior,” said Secretary of State Mike Pompeo in a press release on Wednesday.

END

6.Global Issues

Sweden

Just read as to what is going on in Sweden. Bombings, terrorist attacks with their vehicles, rapes, robberies…

Sweden is out of control..

(courtesy Bergman/Gatestone Institute)

Sweden Spinning Out Of Control

Authored by Judith Bergman via The Gatestone Institute,

“Löfven, you have lost control of Sweden,” the leader of the largest opposition party, the center-right Moderate Party, Ulf Kristersson, recently wrote in an article in the daily newspaper Aftonbladet, in which he criticized Swedish Prime Minister Stefan Löfven for failing to solve some of Sweden’s biggest problems. According to Kristersson:

“Two areas that we [the Moderate Party] highly prioritize are law and order and integration. Because Sweden’s biggest problems are there now.

“Last year, 306 shootings occurred and 45 people were shot dead. According to the police, the number of people killed has doubled since 2014. During the same period, the number of people who have been subjected to sexual abuse has tripled according to BRÅ [the Swedish Crime Prevention Council]…

“Concrete reforms are necessary. We have proposed them – the Social Democrats say no…

At the same time, we have an integration crisis: More than half of all the unemployed are born outside of Sweden. In our exclusion areas, [utanförskapsområden] there are schools where not even half of the students pass all subjects… Many children born in Sweden hardly speak Swedish, and there is extensive repression [in the name of] honor culture. Here too we have called for reforms, but the Social Democrats say no.

“Integration and immigration are connected. Therefore, a long-term and strict immigration policy is required. Temporary residence permits and requirements of financial self-sufficiency for family reunification should be the main rule.

“Requirements for knowledge of Swedish and financial self-sufficiency [should be conditions] for a permanent residence permit.”

Kristersson’s criticism demonstrates that the political mainstream in Sweden is fully cognizant of the country’s fundamental problems. This criticism is especially significant coming from the Moderate Party: Kristersson’s predecessor, Frederik Reinfeldt, who was prime minister of Sweden from 2006 to 2014 and chairman of the Moderate Party from 2003 to 2015, did not share these concerns. In 2014, Reinfeldt urged Swedes to “Open your hearts” to the refugees of the world.

 

“Now I ask the Swedish people to be patient with this. To have solidarity with the outside world… In the long run we create a better world in this way… It will cost money, we will not be able to afford so much else, but [these are] really people who are fleeing for their lives.”

Kristersson, unlike the current Swedish government, appears to have woken up to the realities of Sweden.

One of the realities, according to the Swedish Civil Contingencies Agency (MSB) — the state authority for community protection and preparedness — is that terrorism is now a threat everywhere in Sweden, and therefore even smaller municipalities need to be prepared for terrorist acts to occur.

“First of all,” said Jonas Eriksson, who is responsible for security in the public environment at MSB, “you have to be aware that this can happen in smaller cities… Then you have to think about what is in the municipality that can be vulnerable and sensitive.” The statement came after police intercepted a potential terrorist act in the city of Östersund in August. The suspect was trying to drive into a crowd and run people over, according to Aftonbladet. He is also being investigated for links to Rakhmat Akilov, a terrorist who was convicted of killing five people by plowing a truck into a department store in central Stockholm in April 2017.

From the beginning of 2019 to the end of July, there were 120 bombings in Sweden, according to police statistics. The figure represents an increase of 45% over the same period last year, when 83 bombings took place. The south of Sweden has been particularly badly hit, with 44 bombings.

“At present, one can only really speculate on the reasons why. We have an increased problem with crime and exclusion,” said Petra Stenkula, chief investigator at Police Region south. “It is possible that the supply of dynamite is good, whereas the supply is somewhat more limited when it comes to weapons today compared to before.”

In the southern Swedish city of Landskrona alone — a place of roughly 35,000 inhabitants — since December 2018, there have been seven explosions or bombings. In August, the entrance to Landskrona’s city hall was blown up.

“Those who do this want to disrupt organized society; we will not let that happen”, said municipal council member Torkild Strandberg from the Liberal Party.

In August, another city in the south of Sweden, Linköping, experienced its second blast this year. Police found an object that they suspected was explosives. When it was destroyed by the national bomb protection squad, a powerful explosion occurred. It destroyed a police storehouse and damaged several other buildings. In early June, also in Linköping, an explosion blasted through a residential building. Miraculously, no one was killed, but 20 people were wounded. The police suspect that the incident was gang-related.

The constant insecurity that these incidents produce means that the demand for security guards and other security services has dramatically increasedBoth private companies and municipalities have been asking to hire more security guards. According to Hans Tjernström, press manager at the Swedish Trade Association, an average grocery store spends around 600,000 kronor ($62,000) per year on guards and other items that have to do with security. According to a security industry source, over the next three years, security companies will need to recruit 5,300 more employees.

Rape and sexual assault also continue apace. In Uppsala alone, a picturesque Swedish university town, where 80% of girls do not feel safe in the city center, four rapes or attempted rapes took place in early August within four days. In Stockholm, two rapes occurred during the “We are Stockholm” youth festival in August, in addition to about a dozen other sexual offenses. At the “Piteå Dances and Laughs” summer festival in Piteå, another rape, involving ten men, took place.

In a recent op-ed in Aftonbladet, a member of parliament for the Moderate Party, Josefin Malmqvist, appealed to Morgan Johansson, who serves as Minister of Justice and Minister for Migration Policy, to “Stop the rapes – you are letting the women down.” In her article, Malmqvist wrote:

“Exposure to sexual crimes has risen sharply during Morgan Johansson’s (S) time as Minister of Justice: for the third consecutive year, the number of reported rapes in 2018 increased to 20 reported rapes per day. So far this year, the number of reported rapes has increased by 14 percent… In Sweden — one of the world’s most equal countries — women’s freedom is diminishing. That women do not have the same opportunity to move freely in the streets and squares without having to worry about being exposed to crime, is a serious restriction on women’s freedom and self-determination. While more women are reporting sexual offenses, the rate of resolved rapes is still frighteningly low. A review of the rapes reported in recent years shows that only 5 out of 100 reported rapes lead to conviction.”

She concluded:

“Now is the time to stop talking and start acting. The Moderate Party and the Christian Democrats’ budget raised funding for the police, but more needs to be done. In May 2018, a majority in Parliament approved the Moderate Party’s motion to tighten the penalty for rape. Since then, nothing has happened. It is high time for the Minister of Justice (S) to begin acting for Sweden’s women.”

Another population group that has been suffering under the lack of law and order in Sweden is children. According to BRÅ, there has been a significant increase in robberies against young people in recent years. In just a few years, the number of reports of robberies against people under 18 has significantly increased, from 1,084 reported robberies in 2015 to 1,896 in 2018 — an increase of 75%. There have already been 1,247 reports of robberies against young people in 2019 so far. According to Sven Granath, a criminologist with the Swedish police, the increase in robberies against young people could be because it has become harder to rob older people or to steal from shops. “It has become harder and then they go after a group that cannot protect itself as well. They also have what other youths want, such as mopeds, phones and jewelry” said Granath.

It would appear that Prime Minister Löfven has indeed lost control of Sweden.

END
huge drop in demand for goods as container shipper rates collapse 43% in Sept..forcing carriers to slash capacity
(courtesy zerohedge)
(send to us from G and many thanks)

September Container Shipping Rates Collapse 43% Forcing Carriers To Slash Capacity

Container shipping rates continue to move lower into the fourth quarter of 2019, according to FreightWaves. The drop in price comes as a result of the most recent round of tariffs discouraging U.S. importers from front loading orders. As a result, ocean carriers are looking to cut even more shipping capacity in hopes of meeting tepid demand into the back end of the year.

Spot rates on the Freightos Baltic Daily Index for China-North America West Coast were down 8% from last week, falling to $1,327 per forty-foot equivalent unit. Container rates are down 34% since the beginning of the year, despite the industry now being in peak season. 

The drop is even steeper when compared to last year’s peak season, which had the tailwind of container front-loading from China ahead of tariff increases. September spot rates are down 43% year over year and are down 14% from 2017. 

Freightos Chief Marketing Officer Eytan Buchman says the collapse is likely due to a “tepid response” to the latest round of tariff increases. The increases were supposed to start on October 1, but have been delayed until October 15. The U.S. is set to meet with China for trade talks on October 10. The next round of tariff increases will come on $200 billion in Chinese goods and will see tariffs rise to 30% from 25%.

Tariffs on $188 billion in goods that are slated for December could help revive shipping demand, however.

Buchman said:

“Trans-Pacific pricing remains at the mercy of the trade tariff war. The most recent tariff change carries less clout than predecessors due to the short, five week notice and the limited scope of goods affected.”

He continued:

“Given the weak peak season prices, carriers will be banking on post-Golden Week increases, as well as the December 15 tariff change, to shore up prices. With a significantly longer four month notice, there’s a better chance that this tariff increase will lead to increased shipping – and freight rates – come October and November.”

The drop in demand is forcing shippers to cut more capacity. For example, Ocean Alliance plans to cut up to seven sailings between October 15 and December 2 in order to meet the poor demand. This news comes after nine weekly sailings between Asia and the West Coast of the U.S. were cancelled during China’s Golden Week celebration.

According to FreightWaves, the cancelled sailings include:

  • Two, 8,830 TEU sailings for the Port of Long Beach at the end of November and start of December
  • Two weekly services into the Port of Los Angeles in December, one with 13,940 TEU in capacity, one with 6,680 TEU of capacity
  • A Seattle sailing of a 10,800-TEU capacity service in December.
  • A 9,940 TEU service into Prince Rupert
  • A 5,580 TEU service into Vancouver
Gijsbert Groenewegen LLD
Silverarrowpartners
+1.646.247.1000
end

7. OIL ISSUES

Oil drops on news of a partial ceasefire with Yemen

(zerohedge)

Oil Tumbles On Report Saudis Agree To Partial Ceasefire With Yemen

With the price of oil still on edge over the duration of Saudi Aramco repairs and speculation over how long until Saudi oil output is fully restored, moments ago Brent tumbled after a WSJ report that Saudi Arabia – which is hoping to come to market with the Aramco IPO in the coming weeks – is seeking to impose a partial cease-fire in Yemen, as Riyadh and the Houthi militants the kingdom is fighting try to bring an end to the four-year war that has become a front line in the broader regional clash with Iran.

Saudi Arabia’s surprise decision to de-escalate a long-running war follows a just as surprising move by Houthi forces to declare a unilateral cease-fire in Yemen last week, just days after claiming responsibility for the Sept. 14 drone and cruise missile strike on Saudi Arabia’s oil industry the WSJ notes. While the Houthis fired two missiles at Saudi Arabia earlier this week, the strike wasn’t seen by Saudi leaders as a serious attack that would undermine the new cease-fire efforts.

Houthi leaders initially said they were responsible for the attack on the oil facilities, but Saudi, U.S. and European officials have dismissed the claims as a transparent attempt to obscure Iran’s role in the strike. Yemeni fighters, these officials say, have neither the weapons nor the skills to carry out such a sophisticated strike.

In the days that followed the attack, an internal Houthi rift expanded between those who want to distance themselves from Iran and those who want to strengthen ties.

An end to the war – if sustained – would certainly be a major breakthrough for peace in the region. Yemen’s war has become a political and military morass for Saudi Arabia and Crown Prince Mohammed bin Salman, the country’s de facto ruler and original architect of the war plans. The war has eroded support for his country in Washington, where bipartisan opposition to the conflict has solidified.

The Houthis’ unilateral cease-fire last week has raised hopes in Riyadh and Washington that the Yemeni fighters might be willing to distance themselves from Tehran. The U.S. has accused Iran of providing the Houthis with missiles, drones and training they have used to target Saudi Arabia for years. Iran has dismissed the claims, but Tehran has moved to deepen its ties with the Houthi forces.

In response to the Houthi move, Riyadh has agreed to a limited cease-fire in four areas, including San’a, the Yemeni capital Houthi forces have controlled since 2014.

If the mutual cease-fire in these areas takes hold, the Saudis would look to broaden the truce to other parts of Yemen, according to people familiar with the discussions.

Of course, chances are the deal collapses quickly: the new cease-fire faces steep odds, as similar arrangements have crumbled before the WSJ notes. Both sides continue to carry out attacks, including a Saudi airstrike north of San’a on Tuesday that killed several civilians. The internal Houthi divisions could undermine the peace efforts, as they have in the past.

“Yemen needs to break from this vicious cycle of violence now and be safeguarded from the recent tension in the region that could risk its prospects for peace,” said Martin Griffiths, the U.N.’s special envoy for Yemen who brokered peace talks last December in Stockholm that helped defuse tensions and pave the way for new diplomatic initiatives.

In any case, in kneejerk reaction Brent tumbled as much as 1.8%, dropping to a session low of $61.6, down $1.00 in seconds, and erasing all of last week’s gains.

end

 

Oil falls more on news that the USA might give up all Iran sanctions for talks

(zerohedge)

Oil Erases All Saudi-Attack Gains After Iran Sanctions Report

Already helped by reports of apartial Saudi cease-fire with Yemen, oil prices have legged lower – erasing all the price gains since the Saudi-attack – on the back on a Reuters report saying that US offered to remove all Iranian sanctions in exchange for talks.

 

That’s not going to help the value of the Aramco IPO.

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.0936 UP .0014 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 GREEN

 

 

USA/JAPAN YEN 108.08 UP 0.337 (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 1.2305   DOWN   0.0024  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3253 DOWN .0017 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  FRIDAY morning in Europe, the Euro ROSE BY 14 basis points, trading now ABOVE the important 1.08 level RISING to 1.0936 Last night Shanghai COMPOSITE CLOSED UP 3.08 POINTS OR 0.11%

 

//Hang Sang CLOSED DOWN 87.12 POINTS OR 0.33%

/AUSTRALIA CLOSED UP 0,57%// EUROPEAN BOURSES ALL MIXED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 87.12 POINTS OR 0.33%

 

 

/SHANGHAI CLOSED DOWN 3.08 POINTS OR 0.11%

 

Australia BOURSE CLOSED UP. 57% 

 

 

Nikkei (Japan) CLOSED DOWN 169.37  POINTS OR 0.77%

 

 

 

INDIA’S SENSEX  IN THE RED

Gold very early morning trading: 1495.00

silver:$17.55-

Early FRIDAY morning USA 10 year bond yield: 1.71% !!! UP 2 IN POINTS from THURSDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.16 UP 1  IN BASIS POINTS from THURSDAY night.

USA dollar index early MONDAY morning: 99.17 UP 4 CENT(S) from  THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing FRIDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.47% DOWN 4 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.24%  UP 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.15%//DOWN 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:0,82 DOWN 2 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 67 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.57% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.39% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR FRIDAY

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

Euro/USA 1.0939  DOWN     .0016 or 16 basis points

USA/Japan: 107.97 DOWN .216 OR YEN DOWN 22  basis points/

Great Britain/USA 1.2303 DOWN .0026 POUND DOWN 26  BASIS POINTS)

Canadian dollar UP 7 basis points to 1.3262

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 7.1227    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.1430  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.6667 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.24%

 

Your closing 10 yr US bond yield DOWN 1 IN basis points from THURSDAY at 1.69 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.14 UP 0 in basis points on the day

Your closing USA dollar index, 99.13 UP 81  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED UP 75.13  1,02%

German Dax :  CLOSED UP 92,40 POINTS OR UP 0.75%

Paris Cac CLOSED UP 20.01 POINTS 0.36%

Spain IBEX CLOSED DOWN 54.40 POINTS or 0.60%

Italian MIB: CLOSED UP 69.73 POINTS OR 0.32%

 

 

 

 

 

WTI Oil price; 56.07 12:00  PM  EST

Brent Oil: 61.78 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    64.40  THE CROSS HIGHER BY 0.40 RUBLES/DOLLAR (RUBLE LOWER BY 40 BASIS PTS)

 

TODAY THE GERMAN YIELD RISES  TO –.57 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 :  55.87//

 

 

BRENT :  61.71

USA 10 YR BOND YIELD: … 1.69  DOWN 1 BASIS PT…

 

 

 

USA 30 YR BOND YIELD: 2.13  DOWN 1 BASIS PT..

 

 

 

 

EURO/USA 1.07.94 ( UP 20   BASIS POINTS)

USA/JAPANESE YEN:107.94 UP .190 (YEN DOWN 19 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 99.10 DOWN 3 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.296 DOWN 33  POINTS

 

the Turkish lira close: 5.6695

 

 

the Russian rouble 64.64   DOWN 0.42 Roubles against the uSA dollar.( DOWN 42 BASIS POINTS)

Canadian dollar:  1.3242 UP 27 BASIS pts

USA/CHINESE YUAN (CNY) :  7.1227  (ONSHORE)/

 

USA/CHINESE YUAN(CNH): 7.1440 (OFFSHORE)

 

German 10 yr bond yield at 5 pm: ,-0.57%

 

The Dow closed DOWN 70.73 POINTS OR 0.26%

 

NASDAQ closed DOWN 91.03 POINTS OR 1.13%

 


VOLATILITY INDEX:  13.53 CLOSED DOWN .44

LIBOR 3 MONTH DURATION: 2.1043%//

 

 

USA trading today in Graph Form

Stocks Sink As Trade Tensions Trump Fed’s Open-Mouth (And Market) Operations

President Trump started the week with a well-timed “sooner than you think” comment on the proximity of a China trade deal, then continued to lambast China in his UN speech, raises prospect of more Huawei sanctions, and floats the idea of capital controls on China inflows. All of which prompted a response from China’s Wang, warning that “China does not cower to threats.” A few well-timed Fed headlines (mainly Bullard’s uber-dovish job interview comments) and selectively picking US data to meet the narrative helped stocks; but in the end it was an ugly week for US, China, and European stocks…

Source: Bloomberg

Market-implied trade deal odds slipped this week…

Source: Bloomberg

China stocks all ended lower on the week, led by the tech-heavy Shenzhen and ChiNext indices…

Source: Bloomberg

But China stocks were hit even harder today (after the cash markets above were closed) on the investment flows headlines..

European stocks ended the week lower but Spain’s IBEX managed to get back to unch by the close…

Source: Bloomberg

US stocks tumbled on the week with Small Caps leading the plunge (worst week for Russell 2000 since May)…

 

Source: Bloomberg

All the major indices tested or broke below key technical levels…Nasdaq below 50, 100DMA; Russell 2000 below 200DMA; S&P testing 50DMA…

 

Source: Bloomberg

FANG Stocks were battered this week, back to their lowest since January…

Source: Bloomberg

Quant funds oscillated flows all week – Momo was down, up, down, up, and down…

Source: Bloomberg

Cyclicals dramatically underperformed this week (but selling was broad-based today)…

Source: Bloomberg

This week’s move should not be a total surprise as it was the downside pin from options gamma…

Source: Bloomberg

VIX surged almost 3 vols this week – the most in 2 months -back above 18

 

Source: Bloomberg

And just what triggered the biggest relative selling of Alternative Asset Managers to the S&P since Feb 2016…

 

Source: Bloomberg

Treasury yields ended a volatile week lower…

Source: Bloomberg

10Y Yields fell back below 1.70%…

Source: Bloomberg

The week did see take-up for The Fed’s liquidity spigot drop, but we still have the actual month-end day (Monday) to go…

Source: Bloomberg

Before we leave bondland, here’s WeWork’s 2025 bond collapsing to record lows (and thus record high yields at 11% – quite a cost of funds!!)

Source: Bloomberg

The DXY Dollar Index roared higher this week…

Source: Bloomberg

Soaring to its highest since May 2017…

Source: Bloomberg

Offshore Yuan fell for the second week in a row as China heads into Golden Week…

Source: Bloomberg

Cryptos had their worst week since Thanksgiving 2018…

Source: Bloomberg

Bitcoin tumbled (on heavy volume) back to find support around $8,000 (trying to hold around its 200DMA)…

Source: Bloomberg

Commodities were broadly lower on the week in the face of USD strength…

Source: Bloomberg

Gold seems to have known where global rates would end up as negative-yielding debt accelerated once again…

Source: Bloomberg

Finally, we wonder if the ascent of Warren in the prediction markets is starting to affect stocks…

Source: Bloomberg

For now it seems like the Q3 surge in global economic data has ended abruptly (biggest weekly drop since June)…

And now your more 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

Yuan, Stocks Slammed As US Weighs Limits On Portfolio Flows From China

In what appears to dismiss President Trump’s claims that a deal is a lot closer than you think, Bloomberg reports that the White House is said to support a review of investment limits for China.

Among the options the Trump administration is considering:

  • delisting Chinese companies from U.S. stock exchanges and
  • limiting Americans’ exposure to the Chinese market through government pension funds.

Exact mechanisms for how to do so have not yet been worked out and any plan is subject to approval by President Donald Trump, who has given the green light to the discussion, according to one person close to the deliberations.

Bloomberg adds that there is reportedly no timeline for a Chinese capital restriction action.

The market did not like that…

Yuan is also tumbling…

Source: Bloomberg

Alibaba shares plunged…

But there are others…

Trade deal odds tumble…

Source: Bloomberg

Cue – headline touting how great the deal talks are going…

But don’t hold your breath, as Bloomberg concludes,Trump would also have the support of hardline advocates, like Bannon, his former chief strategist, and hedge fund manager Kyle Bass. Both are leading the Committee on the Present Danger: China. It’s a group that advocates for total economic decoupling as a way to secure America’s national security.

In a recent “threat briefing” – which is how the group titles its meetings – Bannon said American financing have helped spur China’s economic ambitions and technological advances.

“The Frankenstein monster that we have to destroy is created by the West. It’s created by our capital,” Bannon said at the Sept. 12 briefing.

Or is that more like shooting oneself in the foot?

end

Then the reaction:

Nasdaq, Small Caps Plunge Through Key Technical Levels

A ‘bad’ trade headline and suddenly Nasdaq and Small Caps are tumbling below their 50- and 100-day moving averages.

S&P and The Dow have some room to run yet…

What happens next?

 

We are going to need a ‘good’ trade headline stat!

end

ii)Market data/USA

This is one of the more important data points/uSA spending and it shows the weakest growth in 6 months

(zerohedge)

US Spending Growth Weakest In Six Months, Core Capex Tumbles

Americans’ personal income and spending growth in August was expected to reverse some of the moves seen in July (income slowed, spending accelerated) and it did with incomes up 0.4% MoM (as expected) accelerating over July’s 0.1% rise, but spending growth was only 0.1% (well below July’s and expectations).

This is the weakest MoM gain in six months…

Source: Bloomberg

Which sparked a slowdown in income and spending growth year-over-year (weakest annual gains in spending in six months)

Source: Bloomberg

Which prompted a rise in the savings rate (to highest since March 2019)

This is the biggest MoM jump in the savings rate since Feb 2019…

The Fed’s favorite inflation indicator accelerated but remains well below the 2.00% mandate…

Source: Bloomberg

A separate Commerce Department report showed bookings for non-military capital goods excluding aircraft — a proxy for business investment — fell 0.2%, the weakest performance in four months, compared with forecasts for no change; and the biggest annual contraction in core capex since Nov 2016

Source: Bloomberg

The data suggest growth continued to cool in the third quarter, adding focus to next week’s September jobs report to show whether the labor-market slowdown is deepening.

end

I would not put much faith in this soft data.  U. of Michigan confidence rebounds.  However it does show that Democrats are getting more depressed

(zerohedge)

UMich Confidence Rebounds But Democrats Get More Depressed

The preliminary UMich data showed a modest rebound in September after August’s collapse and final data confirmed that trend continued into the end of the month:

 

 

Source: Bloomberg

Buying conditions were flat for housing…

 

Source: Bloomberg

Higher income Americans saw the smallest rise in confidence…

 

Source: Bloomberg

UMich notes that impeachments divert the attention of the President and Congress away from economic policies, and may become conflated with partisan strategies.

The big divergence was, once again, political as Dems confidence slumped to 72.0 vs 75.7 and Reps confidence rose to 119.5 from 112.8

 

Source: Bloomberg

Despite the high levels of confidence, consumers have also expressed rising levels of economic uncertainty. Some of these concerns are rooted in partisanship, some due to conditions in the global economy (Brexit, Iran, Saudi Arabia, China), and some are tied to domestic economic policies.

 

trade policies have had the greatest negative impact on consumers, with a near record one-third of all consumers negatively mentioning trade policies in September when asked to explain in their own words the factors underlying their economic expectations

END

iii) Important USA Economic Stories

THE sad state of affairs of Illinois cities as they are getting crushed by pension costs. Ted Dabrowski our resident expert on Illinois affairs takes a look at just one city Peoria

(courtesy Ted Dabroski/WirePoints.org)

Illinois Cities Getting Crushed By Pension Costs – Just Look At Peoria!

Authored by Ted Dabrowski and John Klingner via WirePoints.org,

Illinois politicians’ refusal to address skyrocketing municipal pension costs is destroying cities across the state. Some cities like Harvey and East St. Louis are beyond repair, with the Illinois Comptroller already stepping in to confiscate city revenues on behalf of the municipalities’ grossly underfunded pension plans. Most other cities are deteriorating quickly. They’re fighting ever-increasing pension costs that are swallowing city budgets and chasing residents away. More than half of Illinois’ 650 public safety plans are less than 60 percent funded.

Peoria is one of those struggling cities. No, it’s not a Harvey or an East St. Louis, but it’s certainly in a downward spiral like many other cities. Peoria officials are adding new taxes and fees to deal with the city’s struggling budget. A new utility tax was added in 2018, along with a public safety pension fee that’s being ratcheted up over the next couple of years. Their efforts to tax more are likely to be futile. The numbers justify those doubts.

To understand why, take a look at how much Peoria residents have put into public safety pensions since 2005, only to see things dramatically worsen over the decade. It’s a reality cities across the state face: retirement security for public safety workers is collapsing despite the billions of additional taxpayer dollars poured into local pension funds.

 

Peoria’s woes

Peoria taxpayers have more than doubled their yearly contributions to the city’s police and fire pension funds, to $17 million in 2017 from $7 million in 2005. Despite all that extra funding, the combined shortfall in Peoria’s police and fire pensions have jumped 2.7 times.

Public safety pensions were “just” $100 million underfunded in 2005. But after more than $155 million in cumulative taxpayer contributions to the funds from 2005 through 2017, the shortfall in the funds nearly tripled to $275 million.

How can that happen? How can so much money go in and yet the plans get so dramatically worse? How can retirement security collapse so quickly for hundreds of city workers?

There are several drivers behind those numbers.

1. More retirees than actives.Start with the fact that Peoria’s public safety pension plans have 20 percent more pension beneficiaries that active participants. The plans are upside down. There are more people taking money out of the pension funds than putting money in. It’s such a common situation across the state that it’s no wonder critics of these pension funds call them Ponzi schemes.

Peoria’s combined fire and police active workforce has dropped to just over 400 workers, while the number of beneficiaries grew to almost 480 in 2017. Those numbers will get worse as the city is forced to reduce the number of active workers to free up the budget to pay for increasing pension costs. It’s a downward spiral.

Nearly 200 of the state’s 650 funds already have more beneficiaries than active workers, though the overall membership numbers for the entire state are not upside down yet. But if trends continue the number of total public safety beneficiaries will outnumber active workers by around 2021.

2. Salary growth. The growth in public safety salaries continue to far outpace the salaries of the residents who pay for those public workers. Higher salaries mean bigger pensions and a bigger pension hole for the city.

Since 2005, public safety salaries in Peoria are up 53 percent or nearly 2.8 times more than pay in the private sector, up just 19 percent. In contrast, Inflation over that time period was 25 percent. Public safety workers need to be compensated well, but the raises and overall salary levels are increasingly out of reach for the average Peoria resident.

The same is happening across Illinois. Average local public safety salaries statewide are up 51 percent compared to 2005. Meanwhile, median private sector worker earnings in Illinois (for all population 16 years and over, with earnings), are up just 17 percent.

Residents, whose own earnings are failing to keep up with inflation, are being forced to pay ever-higher public safety salaries, which not only drive up yearly operating budgets, but make future pensions costs jump even more.

3. Bargaining laws favor unions over residents. Illinois’ labor laws are the driver behind much of those salary increases. Public safety workers in Illinois can demand an arbitrator when they don’t get the contract terms they want. And that means city officials – the taxpayer’s representatives – are stripped of their negotiating power vis-a-vis the unions. Under arbitration, an outside, unelected official takes over negotiations and unilaterally determines the terms of the contract.

Unsurprisingly, the unions usually come out ahead in that process. The fear of losing in arbitration causes many officials to simply give in to demands rather than face the arbitration process in the first place.

That union power has helped drive up salaries to levels far above the median salary in Peoria. A look at the city’s 2018 compensation report shows over 467 city employees make over $100,000 in total compensation a year, bolstered by high salaries. And 40 employees make $200,000 or more in total compensation a year.

4. Fast-growing benefits. Bigger salaries mean bigger pension benefits, and that’s let pension promises grow uncontrollably despite the pension crisis in Peoria.

The value of all future pension promises to be paid out to public safety workers totaled just $320 million in 2005. By 2017, that number had jumped to nearly $600 million. That’s a jump of over 80 percent, or more than three times the pace of inflation.

It’s the main reason why taxpayer contributions can’t keep up with pension costs. Pols are doing nothing to control the growth of promises to be paid, sticking taxpayers with ever-increasing costs and ratcheting up the likelihood the pension plans will fail.

That’s true for the downstate pension crisis in its entirely. In 1987, municipalities owed a total of $2.6 billion in benefits earned to active and retired public safety workers across the state. Today, that number has jumped to more than $23 billion. That’s a jump of nearly nine times.

More to the crisis

The above analysis captures only the cost of public safety pensions in Illinois. Skyrocketing pension costs for state and municipal workers and teachers are also creating a major drag on state and municipal budgetshome prices, and out-migration numbers.

In many places, pension costs have pushed up property taxes to unsustainable levels. The Illinois Department of Revenue calculates that Peoria’s effective property tax rates based on home values has now reached 2.8 percent. No matter the research you look at, Illinois property taxes are among the highest in the nation.

What’s worse, Peoria homeowners are in deep, deep trouble. GOBankingRates found that Peoria was the most troubled housing market in the nation – the most likely to “turn ugly” according to the firm’s report. Other Illinois cities were right behind Peoria. In all, nine Illinois communities made the top 50 list of housing markets that are turning ugly.

Peoria is shaping up as a perfect storm of high property taxes, collapsing home values and growing debts – something that’s bound to drive city residents away. And as more residents leave, the bigger the bill will be on those who remain. It’s simply not sustainable.

Fixes

Illinoisans should ignore what they hear from the Illinois Municipal League and others that claim they are addressing the pension crisis by looking at pension fund consolidation. For sure, some small benefits will result from consolidation, but it has nothing to do with saving our cities and the retirement security of municipal workers.

Until you hear Illinois politicians fighting for pension amendment, changes to labor laws, a bankruptcy option for cities and other changes that reduce the insurmountable pension debts, then they aren’t addressing the problem.

Illinois pols have already allowed too many cities to go past the point of repair. Harvey and East St. Louis are just two of them. Will pols wait till Peoria joins them before they finally act?

end
Liquidity shortage eases a bit with only 49 billion of the final TOMO accepted out of a 75 billion offering.
The liquidity shortage however will show its true colours on Monday.
(zerohedge)

Liquidity Shortage Eases: Fed Accepts Only $49BN In Final, Underscubscribed Term Repo

One day after the Fed concluded its 2nd upsized, $60BN term repo on Thursday and which was notably oversubscribed – which sparked fresh concerns about dealer funding needs heading into quarter end – moments ago the Fed released the results of the final, third term repo which indicated that while funding tensions remain, they appear to have eased as the Fed accepted “only” $49 billion in the undersubscribed operation, which accepted all $34.55BN in Treasuries and $14.450BN in MBS that were tendered.

Why is this good news? Because some had feared that the third repo would also be oversubscribed, hinting that some dealers would not be able to find all the liquidity they need into quarter end. That, however, did not happen and instead as of this moment, all dealers who were concerned about their quarter-end funding needs should have the appropriate liquidity needed.

Now the only question is what the results for today’s overnight repo operation will show. If funding stress is indeed easing this too should be well below the full $100BN allotment.

end

iv) Swamp commentaries

Civil war breaks out at Fox between Tucker Carlson and Shep Smith over Smith’s analysis of Trump’s Ukraine actions

(zerohedge)

Fox News Civil War: Tucker Carlson Blasts Shep Smith’s Analysis Of Trump’s Ukraine Actions

war of words between anchors over at Fox News continues to brew, with Tucker Carlson repeatedly berating co-worker Shepard Smith on a segment Wednesday night that focused on Trump’s actions on Ukraine.

Smith had called Carlson and legal analyst Joe diGenova “repugnant” in a daytime analysis of their reporting on the Democratically manufactured Ukrainegate scandal. Smith was flanked by Fox News legal analyst Judge Andrew Napolitano, who drew a starkly different conclusion on Trump’s actions than pro-Trump lawyer diGenova, who appeared the night before on Carlson’s show.

Napolitano concluded that Trump’s actions regarding Ukraine constituted “a crime” during the day on Tuesday.

diGenova had called Napolitano a “fool” for his analysis on Tuesday night and Smith returned the volley during the day on Wednesday, stating that diGenova was a “partisan guest” who was “repugnant” for attacking Napolitano.

“Apparently our daytime host, who hosted Judge Napolitano, was watching last night and was outraged by what you said and quite ironically called you partisan,” Carlson said on Wednesday night.

“Not clear if that was you or me but someone is repugnant!” Carlson sarcastically continued.

Now, unlike maybe some dayside hosts, I’m not very partisan. Is it a crime or not? Given everything that’s happened in the last 24 hours. I want to throw it to you again. Was it a crime or not?”

diGenova again stood by his analysis that Trump’s actions were not a crime. 

And Carlson, again, took a shot at Smith to conclude the segment:

“It doesn’t seem honest to me when a host, any host on any channel, including this one, pretends that the answer is obvious. That’s not news, is it? That’s opinion. Why do we find ourselves in a situation where people aren’t willing to admit that their passions are guiding their news coverage?

Wouldn’t it be better if we just said out loud you know this is what I think? For example you will never hear me criticize Rachel Maddow. I never agree with anything she says. But she is straightforward, it’s her opinion. Why wouldn’t it be better if we were all that transparent about what’s driving our shows?

It makes people cynical when you dress up news coverage, when you dress up partisanship as news coverage and pretend that your angry political opinions are news, you know, people tune out.”

You can watch the full segment, courtesy of Mediaite, below:

end
We now morph into Ukrainegate from Russiagate.  Here is the entire story from the beginning for those who missed how this started:
(Cunningham/Strategic Culture Foundation).

From Russiagate To Ukrainegate

Authored by Finian Cunningham via The Strategic Culture Foundation,

With the “Russiagate” hoax proving to be the “most fraudulent political scandal in American history,” as Princeton Professor Stephen Cohen puts it, now we have emerging an alternative – “Ukrainegate”.

President Donald Trump is being accused of abusing his White House office to put pressure on Ukrainian counterpart Volodymyr Zelensky to dig into alleged corrupt dealings by Joe Biden, the top Democratic candidate for the forthcoming presidential elections in 2020.

To make matters worse for Trump, he is also accused of threatening to withhold $250 million of military aid as a way to pressure the Kiev authorities to investigate Biden’s past relations with Ukraine, when he was serving as Vice President in the Obama administration. That could amount to extortion by Trump, if proven.

 

Democratic political opponents and the anti-Trump liberal media are renewing demands for his impeachment. They are adamant that he has now crossed a clear red line of criminality by seeking a foreign power to interfere in US elections by damaging a presidential rival.

For his part, Trump denies his conversations with the Ukrainian president were improper. He said he phoned Zelensky back in July to mainly congratulate him on his recent election. Trump does however admit that he mentioned Biden’s name to Zelensky in the context of Ukraine’s notorious culture of business corruption. The American leader maintains that Joe Biden should be investigated for possible conflict of interest and abusing the office of vice president back in 2016 in order to enhance the business affairs of his son, Hunter.

Trump’s phone call to Ukraine hit the news last week when a US intelligence officer turned whistleblower to allege that the president was overheard in a conversation inappropriately making “a promise to a foreign leader”. The identity of the foreign leader was not disclosed. But immediately, the anti-Trump US media began speculating that it was Russian President Vladimir Putin. The keenness to point fingers at Putin showed that the Russiagate fever is still virulent in the US political establishment, even though the long-running narrative alleging Russian interference or collusion collapsed earlier this year when the two-year Robert Mueller “Russia investigation” floundered into oblivion for lack of evidence.

Turns out now that Trump’s telephone liaison was not with Putin, but rather Ukraine’s Zelensky. And the anti-Trump politicos and media are getting all fired up with “Ukrainegate” – as a replacement for the non-entity Russiagate.

Trouble is that this alternative conspiracy could backfire badly for Trump’s enemies.

Because, despite the obsession with trying to impeach Trump, the renewed focus on Ukraine raises legitimate and serious questions about the past dealings of Joe Biden.

In March 2014, Biden’s son Hunter was slung out of the Navy Reserve for his cocaine habit. Then a month later, the younger Biden ends up on the executive board of Ukrainian natural gas firm Burisma Holdings. This was all only weeks after the Obama administration and European allies had backed an illegal coup in Kiev against the elected Ukrainian President Viktor Yanukovych.

Vice President Joe Biden was the White House’s point man to Ukraine, supporting the new regime in Kiev by organizing financial and military aid. Biden even boasted how he personally warned Yanukovych that the game was up and that he better step down during the tumultuous CIA-backed street violence in Kiev during February 2014. “He was a dollar short and a day late,” quipped Biden about the ill-fated president.

The appointment of Biden’s washed-up son to a plum job in Ukraine should have merited intense US media scrutiny and investigation. But it didn’t. One can only imagine their reaction if, say, it had been Trump and one of his sons involved.

Moreover, in 2016, when Ukraine’s Prosecutor General Viktor Shokin was conducting a probe into allegations of corruption and sleaze at the gas company Burisma, among other businesses, it was Vice President Joe Biden who intervened in May 2016 to call for the state lawyer to be sacked. Biden threatened to withhold a $1 billion financial loan from Washington if the prosecutor was not axed. He duly was in short order and the probe into Burisma was dropped.

Potentially, Joe Biden, the current top Democratic candidate for the 2020 presidency, could see his chances unraveling if “Ukrainegate” is pushed further. The dilemma for his supporters among the political establishment is that the more they try to beat up on Trump over his alleged horse-trading with Ukraine, the more the heat can be turned by him on Biden over allegations of graft and abuse of office to further his family’s business interests.

Senator Lindsey Graham, who sits on the Senate Judiciary Committee, is this week calling for an investigation into Biden’s conduct in Ukraine.

“Joe Biden said everybody’s looked at this and found nothing. Who is everybody? Nobody has looked at the Ukraine and the Bidens,” Mr. Graham told Fox News.

“There is enough smoke here,” Graham added. “Was there a relationship between the vice president’s family and the Ukraine business world that was inappropriate? I don’t know. Somebody other than me needs to look at it and I don’t trust the media to get to the bottom of it.”

Ukrainegate could turn out to be even far more damaging to the Democrats. Because there is evidence that it was the US-backed Kiev regime which helped seed political dirt on Paul Manafort, the former Trump campaign manager. Manafort is facing jail time for fraud and tax offenses unearthed by the Mueller probe. Mueller did not find any link between Manafort and a “Kremlin influence campaign”, as was speculated. However, because Manafort did work previously as a political manager for the ousted Ukrainian President Yanukovcyh, he was seen as a liability for Trump. Was Russiagate always Ukrainegate all along?

Apart from Biden’s potential personal conflict of interests in Ukraine, the country may turn out to be the key to where the whole Russiagate fiasco was first dreamt up by Democrats, Kiev regime operatives and US intelligence enemies of Trump.

Ukrainegate has a lot more political skeletons to tumble from the wardrobe. Those skeletons may bury Democrats and their liberal media-intelligence backers, rather than Trump.

END
Trump states that the USA is at war with the Democrats. He accused the whistleblower of being a spy
(zerohedge)

“We’re At War”: Trump Bashes “Basically A Spy” Whistleblower During Meeting With Diplomats

Confirming reports in the NYT and LAT,  Bloomberg has obtained video from a private meeting between President Trump and about 50 American diplomats where a freewheeling, free-speaking President Trump cracked jokes about Adam Schiff and Joe Biden, and declared that whoever leaked the information about the Ukraine call to the whistleblower is “close to a spy.”

In his typically off-the-cuff style, Trump vented to his audience about the whistleblower and the scandal they’ve unleashed, at one point accusing them of being “highly partisan” and declaring “we’re at war,” before adding that “these people are sick. they’re sick.”

Trump reminded his audience that the whistleblower “never saw the call, never saw the report” before accusing whoever gave them the information of being “basically a spy.”

“I want to know who’s the person, who’s the person who gave the whistleblower the information? Because that’s close to a spy…and you know what we used to do in the old days when we were smart, right? The spies and treason – we used to handle it a little differently than we do now.”

Bloomberg described this last line as a “thinly-veiled threat” against the whistleblower, whose identity has yet to be revealed, and whoever assisted them.

The freewheeling address to about 50 diplomats gathered at the UN – a group that included UN Ambassador Kelly Craft – included comments about the 2016 election, “Sleepy” Joe Biden, and “Little” Adam Schiff, whom Trump accused of having a small neck: “He’s got a neck about this big,” Trump said while pressing his index finger to his thumb, indicating a very narrow circumference. “He’s got shirts that are too big because you can’t buy shirts that are that small. He was never a coal miner, let’s put it that way.”

Venturing into hyperbole, as he often does during private events, Trump boasted that Abraham Lincoln was his only predecessor to appear more presidential than Trump.

“I’m the most presidential except for possibly Abe Lincoln when he wore the hat. That was tough to beat,” Trump said. But he added: “I have better hair than him.”

Of course, Trump’s freewheeling speech wouldn’t have been complete without a shot at the Bidens: Trump accused Hunter Biden, Joe Biden’s troubled son, who has struggled with substance abuse issues for most of his adult life, of improperly securing millions of dollars in business from Ukraine and China – claims that have been at the center of the Ukraine controversy. Trump didn’t spare “Sleepy Joe” Biden, at one point calling him “dumb as a rock.”

In one of his most entertaining admissions from the speech, which – again – was never intended to be made public, Trump told his audience that the only reason he talks about disregarding presidential term limits is because it drives liberals “crazy.”

Finally, Trump directed some harsh words toward CNN and the rest of the news media. “You know these animals in the press. They’re animals. Some of the worst human beings you’ll ever meet,” Trump said. “They’re scum. Many of them are scum.”

Trump soon ended his remarks, but not before praising coal miners and UN Ambassador Craft.

While the media will likely fixate on Trump’s “close to a spy remarks” for some of Friday’s news cycle, the leak of the video basically demonstrates that Trump’s private speaking style isn’t much different from how he comports himself in public.

end

Trump Slams ‘Fraud’ Adam Schiff For Reading Fabricated Mafia Version Of ‘Ukraine Transcript’ 

President Trump on Friday called for the resignation of Rep. Adam Schiff (D-CA) after the House Intelligence Committee Chairman kicked off a Thursday hearing with a completely fabricated version of a phone call between President Trump and Ukrainan President Volodomyr Zelensky.

To recap on Schiff’s alternate reality:

Benny

@bennyjohnson

Wow.
My jaw is on the floor.
“Intelligence” Committee Adam Schiff just fabricated, out of thin-air, the contents of the Trump phone call with Ukraine’s President.
Not a word he says here is true. Not. A. Word.
This entire dark carnival is sad, unhinged Orange Man Bad fan fiction.

Embedded video

Benny

@bennyjohnson

Never in my life have I seen anything like this.
A Chairman for a House committee fabricating quotes from the President of the United States in order to fit his partisan narrative.
This should deeply concern all Americans.
This is what happens in Third World kangaroo courts.

Benny

@bennyjohnson

Imagine how bankrupt, twisted & corrupt you must be to sit before the live TV cameras of the world & fabricate a **dozen** quotes from the President of the United States.
All while chairing the House Intelligence committee.
Furthermore, you have the DAMN transcript in hand
Clown.

“The fact that that’s not clear is a separate problem in and of itself. Of course, the president never said, ‘If you don’t understand me, I’m going to say it seven more times.’ My point is that’s the message that the Ukraine president was receiving, in not so many words,” Schiff later clarified, adding “My summary of the president’s call was meant to be at least part in parody.”

An unapologetic Schiff later told CNN‘s Wolf Blitzer that he was mocking President Trump and suggested that everyone should have known that.

In response, President Trump called for Schiff’s resignation, tweeting on Friday “Rep. Adam Schiff fraudulently read to Congress, with millions of people watching, a version of my conversation with the President of Ukraine that doesn’t exist,” adding “He was supposedly reading the exact transcribed version of the call, but he completely changed the words to make it sound horrible, and me sound guilty.”

“Adam Schiff therefore lied to Congress and attempted to defraud the American Public. He has been doing this for two years. I am calling for him to immediately resign from Congress based on this fraud!

Donald J. Trump

@realDonaldTrump

Rep. Adam Schiff fraudulently read to Congress, with millions of people watching, a version of my conversation with the President of Ukraine that doesn’t exist. He was supposedly reading the exact transcribed version of the call, but he completely changed the words to make it…

Donald J. Trump

@realDonaldTrump

…sound horrible, and me sound guilty. HE WAS DESPERATE AND HE GOT CAUGHT. Adam Schiff therefore lied to Congress and attempted to defraud the American Public. He has been doing this for two years. I am calling for him to immediately resign from Congress based on this fraud!

Trump later tweeted:

Donald J. Trump

@realDonaldTrump

Rep. Adam Schiff totally made up my conversation with Ukraine President and read it to Congress and Millions. He must resign and be investigated. He has been doing this for two years. He is a sick man!

What else has Schiff fabricated?

end

New Docs Contradict Biden Claim That Fired Ukrainian Prosecutor Was Corrupt

Hundreds of documents obtained by The Hills John Solomon contradict Joe Biden’s claim that a Ukrainian prosecutor investigating his son’s employer was corrupt and inept.

Biden infamously bragged about threatening to withhold $1 billion in US loan guarantees unless Ukraine’s previous government immediately fired Prosecutor General Viktor Shokin – who was leading a wide-ranging corruption probe into Burisma Holdings; a Ukrainian oil and gas firm which paid Hunter Biden $50,000 per month to sit on its board.

In a sworn affidavit, Shokin says “I was forced out because I was leading a wide-range corruption probe into Burisma Holdings, a natural gas firm active in Ukraine, and Joe Biden’s son, Hunter, was a member of the board of directors.”

 

And according to Solomon, “Hundreds of pages of never-released memos and documents — many from inside the American team helping Burisma to stave off its legal troubles — conflict with Biden’s narrative.

Moreover, US officials “may have painted a false picture in Ukraine that helped ease Burisma’s legal troubles and stop prosecutors’ plans to interview Hunter Biden during the 2016 U.S. presidential election.”

For instance, Burisma’s American legal representatives met with Ukrainian officials just days after Biden forced the firing of the country’s chief prosecutor and offered “an apology for dissemination of false information by U.S. representatives and public figures” about the Ukrainian prosecutors, according to the Ukrainian government’s official memo of the meeting. The effort to secure that meeting began the same day the prosecutor’s firing was announced.

In addition, Burisma’s American team offered to introduce Ukrainian prosecutors to Obama administration officials to make amends, according to that memo and the American legal team’s internal emails. –The Hill

Appearing on “Hannity” Thursday night, Solomon explained “These documents show, as I report tonight for the first time, that the very day that Joe Biden managed to get that Ukraine prosecutor fired, that very day his son’s company’s lawyers, the American company lawyers helping Burisma trying to fight this investigation were trying to urgently reach the new prosecutor, the replacement prosecutor.

“In that meeting, according to the official record from the prosecutor, the lawyers for Hunter Biden’s company stated to the replacement prosecutor, we know that the information calling Mr. Shokin was corrupt and was ‘False information distributed by U.S. Government officials and other figures. We would like to make this up to you by bringing you to Washington, you are not corrupt and you instigated numerous reforms.’ That is the official record of the meeting. Ukrainian prosecutors kept.” (via the Daily Caller).

According to Solomon, the memos raise troubling questions (via The Hill):

  1. If the Ukraine prosecutor’s firing involved only his alleged corruption and ineptitude, why did Burisma’s American legal team refer to those allegations as “false information?”
  2. If the firing had nothing to do with the Burisma case, as Biden has adamantly claimed, why would Burisma’s American lawyers contact the replacement prosecutor within hours of the termination and urgently seek a meeting in Ukraine to discuss the case?

What’s more, Ukrainian prosecutors attempted to get this information to the US Department of Justice (DOJ) since last summer – first unsuccessfully engaging a US attorney in New York who they say showed no interest, and then reaching out to Rudy Giuliani, President Trump’s attorney.

Meanwhile, the Bidens’ adventures in Ukraine have been out there for nearly four years with virtually no MSM follow-up or scrutiny.

Biden has faced scrutiny since December 2015, when the New York Times published a story noting that Burisma hired Hunter Biden just weeks after the vice president was asked by President Obama to oversee U.S.-Ukraine relations. That story also alerted Biden’s office that Prosecutor General Viktor Shokin had an active investigation of Burisma and its founder.

Documents I obtained this year detail an effort to change the narrative after the Times story about Hunter Biden, with the help of the Obama State Department.

Hunter Biden’s American business partner in Burisma, Devon Archer, texted a colleague two days after the Times story about a strategy to counter the “new wave of scrutiny” and stated that he and Hunter Biden had just met at the State Department. The text suggested there was about to be a new “USAID project the embassy is announcing with us” and that it was “perfect for us to move forward now with momentum.” –The Hill

Shokin told Solomon that when he got fired, he was planning to question Hunter Biden about $3 million in fees that he and Archer collected from Burisma – which in some months totaled over $166,000 according to documents seized by the FBI.

Joe Biden, meanwhile, has been peddling the narrative that Shokin’s March 2016 firing had nothing to do with Burisma – a narrative which Shokin himself disputes.

“The truth is that I was forced out because I was leading a wide-ranging corruption probe into Burisma Holdings, a natural gas firm active in Ukraine and Joe Biden’s son, Hunter Biden, was a member of the Board of Directors,” Shokin testified in the affidavit, adding “On several occasions President Poroshenko asked me to have a look at the case against Burisma and consider the possibility of winding down the investigative actions in respect of this company but I refused to close this investigation.”

Shokin certainly would have reason to hold a grudge over his firing. But his account is supported by documents from Burisma’s legal team in America, which appeared to be moving into Ukraine with intensity as Biden’s effort to fire Shokin picked up steam.

Burisma’s own accounting records show that it paid tens of thousands of dollars while Hunter Biden served on the board of an American lobbying and public relations firm, Blue Star Strategies, run by Sally Painter and Karen Tramontano, who both served in President Bill Clinton’s administration.

Just days before Biden forced Shokin’s firing, Painter met with the No. 2 official at the Ukrainian embassy in Washington and asked to meet officials in Kiev around the same time that Joe Biden visited there. Ukrainian embassy employee Oksana Shulyar emailed Painter afterward: “With regards to the meetings in Kiev, I suggest that you wait until the next week when there is an expected vote of the government’s reshuffle.” –The Hill

Read the rest of Solomon’s report here.

end
Let us close out the week with this offering courtesy of Greg Hunter/USAWatchdog

Dems Made it Up Again, Impeachment Desperation, Economic Crash

By Greg Hunter On September 27, 2019

It looks like the Democrat Party is fabricating another hoax to try, once again, to remove President Donald Trump from office, or at least hurt his chances for a second term. The Deep State and Democrats have teamed up with a “partisan” so-called whistleblower that has concocted a report with no real firsthand knowledge of a crime during a phone call to the new President of Ukraine. The DOJ said the President has committed no crime. On top of that, connections to Democrats abound that the whole thing is another hoax in an attempt to frame the President for something he did not do, which is to ask for an investigation into Joe Biden for alleged corruption in Ukraine. According to new information, it looks like the Ukrainians were already investigating what happened in 2016 in terms of election meddling and corruption, but it is the Democrats who are in the crosshairs.

Speaker of the House Nancy Pelosi says she is going full steam ahead for an impeachment of President Trump. She says the President “broke his oath of office,” but is that really true or is this a political play for the 2020 election? Many on the Right say there is no case for impeachment and no laws were broken. This appears to be a desperate play by Democrats ahead of 2020 for an election they think they cannot win. The other reason Dems are desperate is that the hammer of justice looks like it could be falling for the last hoax and failed coup concocted by Democrats and propelled by the propaganda mainstream media.

Could there be an economic crash? Yes. Housing numbers have just come in, and home sales have rebounded. On the retail side, there are a record number of store closings scheduled–12,000 from various companies by years end. Is this why the Fed is having funding problems in the repo market for the last few weeks, or is there another bigger reason banks need funding?

Join Greg Hunter as he talks about these stories and more in the Weekly News Wrap-Up. (Update: You Tube has, once again, demonetized this video!!! It must be something you need to hear.  Enjoy!!)

-END-

Well that is all for today

And to all of Jewish friends out there, a very happy and healthy New Year.

I will see you Monday night.

 

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