NOV 20//GOLD UP $0.50 TO $1474.40//SILVER FLAT AT $1714.00//NEW COMEX OPEN INTEREST RECORD IN GOLD AT NORTH OF 719,000 CONTRACTS//CONTINUAL QUEUE JUMPING IN GOLD//BIG NEWS WITH RESPECT TO CHINA/USA RELATIONS: USA PASSES BILL CONDEMNING HUMAN RIGHTS ISSUES IN HONG KONG WHICH INFURIATE CHIN//ALSO A BRITISH /HONG KONG EMPLOYEE WAS TORTURED BY MAINLAND CHINESE// IRAN TURNS OFF INTERNET AS PROTESTS ESCALATE IN ALL MAJOR CITIES//MORE SWAMP STORIES FOR YOU TONIGHT///

GOLD:$1474.40 UP $0.50    (COMEX TO COMEX CLOSING)

 

 

 

 

 

 

Silver:$17.14 UP  0 CENTS  (COMEX TO COMEX CLOSING)

Closing access prices:

 

 

 

 

Gold :  $1471.40

 

silver:  $17.15

 

COMEX DATA

JPMorgan has been receiving gold with reckless abandon and sometimes supplying (stopping)

today RECEIVING: 5/59

EXCHANGE: COMEX
CONTRACT: NOVEMBER 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,473.300000000 USD
INTENT DATE: 11/19/2019 DELIVERY DATE: 11/21/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
323 H HSBC 44
435 H SCOTIA CAPITAL 13
657 C MORGAN STANLEY 8
661 C JP MORGAN 5
737 C ADVANTAGE 15 26
905 C ADM 7
____________________________________________________________________________________________

TOTAL: 59 59
MONTH TO DATE: 1,668

we are coming very close to a commercial failure!!

 

 

NUMBER OF NOTICES FILED TODAY FOR  NOV CONTRACT: 59 NOTICE(S) FOR 5900 OZ (0.1835 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  1668 NOTICES FOR 166800 OZ  (5.188 TONNES)

 

 

 

SILVER

 

FOR NOV

 

 

0 NOTICE(S) FILED TODAY FOR nil  OZ/

 

total number of notices filed so far this month: 532 for 2,660,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 8079 DOWN 51 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 8091 down 40

 

 

 

 

Let us have a look at the data for today

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IN SILVER THE COMEX OI ROSE BY A CONSIDERABLE  SIZED 825 CONTRACTS FROM 220,882 UP TO 221,707 WITH THE 11 CENT GAIN IN SILVER PRICING AT THE COMEX.

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

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

FOR NOV 0,; DEC  2179 AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  2179 CONTRACTS. WITH THE TRANSFER OF 2179 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 2179 EFP CONTRACTS TRANSLATES INTO 10.90 MILLION OZ  ACCOMPANYING:

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

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.665     MILLION OZ INITIALLY STANDING IN OCT

TODAY THE CROOKS TRIED TO  RAID SILVER TO NO AVAIL. THEY AGAIN USED HUGE COPIOUS NON BACKED PAPER IN THEIR  UNSUCCESSFUL ENDEAVOUR TO WHACK SILVER’S PRICE ( IT ROSE 3 CENTS ON THE DAY AFTER AN INITIAL PUMMELING ). ALSO OUR OFFICIAL SECTOR/BANKERS  WERE AGAIN UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE  SILVER LONGS AS THE TOTAL GAIN IN OI ON BOTH EXCHANGES TOTALED A STRONG 3004 CONTRACTS. OR 15.02 MILLION OZ…..THE RAID BY OUR BANKERS FAILED AS THEY COULD  NOT COVER ANY OF THEIR HUGE SHORTFALL.

 

 

 

 

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

32,190 CONTRACTS (FOR 14 TRADING DAYS TOTAL 32,190 CONTRACTS) OR 160.95 MILLION OZ: (AVERAGE PER DAY: 2299 CONTRACTS OR 11.49 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF AUGUST:  160.95 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 22,99% 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:          1915.86   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

SEPT 2019 TOTAL EFP ISSUANCE                                                  174.900 MILLION OZ

OCTOBER 2019 ISSUANCE:                                                           146.14 MILLION OZ

RESULT: WE HAD A CONSIDERABLE SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1030, WITH THE 11 CENT LOSS IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  VERY STRONG SIZED EFP ISSUANCE OF 2179 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA) .

 

TODAY WE GAINED A HUGE SIZED: 3004 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 2179 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 825  OI COMEX CONTRACTS. AND ALL OF THIS  DEMAND HAPPENED WITH A 11 CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $17.14 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. 1.104 BILLION OZ TO BE EXACT or 159% of annual global silver production (ex Russia & ex China).

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

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

 

.

 

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ  MAY: 36.285 MILLION OZ ; JUNE/2018  (5.420 MILLION OZ) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   )  FOR AUGUST 6.065 MILLION OZ. , SEPT:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./ DEC. AT 21.925 MILLION OZ   JANUARY AT  5.825 MILLION OZ.AND FEB 2019:  2.955 MILLION OZ/ MARCH: 27.120 MILLION OZ/  APRIL AT 3.875 MILLION OZ/ A MAY:  18.845 MILLION OZ ..JUNE 2.660 MILLION OZ//JULY 22.605 MILLION OZ; AUGUST 10.025 MILLION OZ/ SEPT 43.030 MILLION OZ//OCT: 7.665 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)

 

IN GOLD, THE COMEX OPEN INTEREST ROSE BY A FAIR SIZED 1255 CONTRACTS, AND SETTING A NEW ALL TIME RECORD OF 719,211, A GOOD 1255 CONTRACTS ABOVE OUR  OUR PREVIOUS TIME RECORD  OF 717,956 SET TUESDAY NOV 19/2019. THE GAIN IN COMEX OI  OCCURRED WITH A SMALL $2.40 PRICING GAIN WITH RESPECT TO COMEX GOLD PRICING// YESTERDAY// /

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A STRONG SIZED 6402 CONTRACTS:

NOV 2019: 0 CONTRACTS, DEC>  6402 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 719,211,.  ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE A STRONG AND CRIMINALLY SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 7657 CONTRACTS: 1255 CONTRACTS INCREASED AT THE COMEX  AND 6402 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 7657 CONTRACTS OR 765,700 OZ OR 23.82 TONNES.  YESTERDAY WE HAD A SMALL GAIN OF $2.40 IN GOLD TRADING….

AND WITH THAT GAIN IN  PRICE, WE  HAD SURPRISINGLY A STRONG GAIN IN GOLD TONNAGE OF 23.82  TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON AND WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (UP $2.40). THEY WERE ALSO  UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE SOME GOLD LONGS FROM ANY THE GOLD ARENA AS THE TOTAL OI FOR BOTH EXCHANGES INCREASED!

 

 

 

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

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

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

 

 

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES:

 

 

“AS YOU WILL SEE, THE CROOKS WILL NOW SWITCH TO GOLD AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX GOLD OPEN INTEREST WILL RISE FROM NOW ON UNTIL ONE WEEK PRIOR TO FIRST DAY NOTICE AND THAT IS WHEN THEY START THEIR CRIMINAL LIQUIDATION.

HERE IS HOW THE CROOKS USED SPREADING AS WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF OCT 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 NOV 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 (DEC), AND THAT IS WHEN THE CROOKS SELL THEIR SPREAD POSITIONS BUT NOT AT THE SAME TIME OF THE DAY.  THEY WILL USE THE SELL SIDE OF THE EQUATION TO CREATE THE CASCADE (ALONG WITH THEIR COLLUSIVE FRIENDS) AND THEN COVER ON THE BUY SIDE OF THE SPREAD SITUATION AT THE END  OF THE DAY. THEY DO THIS TO AVOID POSITION LIMIT DETECTION. THE LIQUIDATION OF THE SPREADING FORMATION CONTINUES FOR EXACTLY ONE WEEK AND ENDS ON FIRST DAY NOTICE.” 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF NOV : 128,033 CONTRACTS OR 12,803,300 oz OR 398,23 TONNES (14 TRADING DAY AND THUS AVERAGING: 9145 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 14 TRADING DAYS IN  TONNES: 398.23 TONNES

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

THUS EFP TRANSFERS REPRESENTS 398.23/3550 x 100% TONNES =10.65% OF GLOBAL ANNUAL PRODUCTION

 

 

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     5170,08  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

SEPT 2019 TOTAL EFP ISSUANCE              509.57 TONNES

OCT 2019 EFP ISSUANCE                           497.16 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 FAIR SIZED INCREASE IN OI AT THE COMEX OF 1255 WITH THE  PRICING GAIN THAT GOLD UNDERTOOK YESTERDAY($2.40)) //.WE ALSO HAD  A STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 6402 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 6402 EFP CONTRACTS ISSUED, WE  HAD AN STRONG  AND CRIMINALLY SIZED GAIN OF 7657 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

6402 CONTRACTS MOVE TO LONDON AND 1255 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 23.82 TONNES). ..AND THIS STRONG INCREASE OF  DEMAND OCCURRED DESPITE THE SMALL GAIN IN PRICE OF $2.40 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX.

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

 

 

 

 

 

 

 

 

we had:  59 notice(s) filed upon for 5900 oz of gold at the comex.

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

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

GLD...

 

WITH GOLD UP $0.50 TODAY//(COMEX-TO COMEX)

no changes in gold inventory at the GLD

NOV 20/2019/Inventory rests tonight at 891.79 tonnes

 

 

SLV/

 

WITH SILVER UP  0 CENTS TODAY: 

 

no changes in silver inventory at the SLV

 

/INVENTORY RESTS AT 375,574 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 ROSE BY A STRONG SIZED 825 CONTRACTS from 220,882 UP TO 221,707 AND CLOSER TO 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 NOV. 0; FOR DEC  2179 AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2179 CONTRACTS. EFP’S GIVE OUR COMEX LONGS A FIAT BONUS PLUS A DELIVERABLE PRODUCT OVER IN LONDON.  IF WE TAKE THE OI GAIN AT THE COMEX OF 825  CONTRACTS TO THE 2179 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN AN VERY STRONG AND CRIMINALLY SIZED GAIN OF 3004 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 15.02 MILLION OZ!!! AND YET WE ALSO HAVE A STRONG DEMAND FOR PHYSICAL AS WE WITNESSED A FINAL STANDING OF GREATER THAN 30 MILLION OZ FOR JULY, A STRONG 7.475 MILLION OZ FOR AUGUST..  A HUGE 39.505  MILLION OZ  STANDING FOR SILVER IN SEPTEMBER… OVER 2 million  OZ STANDING FOR THE NON ACTIVE MONTH OF OCTOBER.,  7.440 MILLION OZ FINALLY STANDING IN NOVEMBER.  21.925 MILLION OZ STANDING IN DECEMBER , 5.845 MILLION OZ STANDING IN JANUARY. 2.955 MILLION OZ STANDING IN FEBRUARY,  27.120 MILLION OZ FOR MARCH., 3.875 MILLION OZ FOR APRIL  18.765 MILLION OZ FOR MAY  NOW 2.660 MILLION OZ FOR JUNE WITH JULY AT 22.605 MILLION OZ AUGUST AT 10.025 MILLION OZ//  SEPT: 43.030 MILLION OZ///OCT: 7.665 MILLION OZ//

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 11 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 2179 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

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

 

 

(report Harvey)

.

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 22.94 POINTS OR 0.78%  //Hang Sang CLOSED DOWN 204.19 POINTS OR 0.75%   /The Nikkei closed DOWN 204.19 POINTS OR 0.75%//Australia’s all ordinaires CLOSED DOWN 1.24%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0343 /Oil UP TO 55.44 dollars per barrel for WTI and 61.30 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0343 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0386 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3A//NORTH KOREA/ SOUTH KOREA

 

3b) REPORT ON JAPAN

3C  CHINA

i)China is secretly de dollarizing as trade tensions escalate

(zerohedge)

ii)China/Hong Kong/USA

The big news last night:  The Senate passes a bill supporting the Hong Kong protests which infuriates Mainland China.
(zerohedge)

iii)HONG KONG/SWITZERLAND

This is a good Bellwether on how the economy in Hong Kong is collapsing: Swiss watch exports to Hong Kong crash

(zerohedge)

iv)Hong Kong

This is not good at all: a shackled , blindfolded and hooded ex Hong Kong consulate worker was tortured by Chinese agents

(zerohedge)

4/EUROPEAN AFFAIRS

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)Saudi Arabia/USA/Straits of Hormuz/Iran

Trump to send 3,000 troops to the Kingdom as a new carrier enters the Gulf to protect ships

(zerohedge)

ii)IRAN

IRAN TURNS OFF THE INTERNET AS PROTESTS ESCALATE

this is very dangerous!!

(courtesy zerohedge)

6.Global Issues

Expect the full Japanization of the global economies

(Daniel Lacalle)

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

i)USA 4th quarter GDP his heading for zero growth

(Jeff Cox/CNBC)

ii)My goodness, this is awful: PG and E rolling blackouts hit 181,000 customers

(zerohedge)

iii)Michael Snyder explains  that the USA’s relation with China has just been destroyed by the Senate vote on Human rights and Democracy in H.K.(Michael Snyder)

iv) Swamp commentaries)

The Ukrainian prosecutor is now claiming that the Obama-Bidens were involved in laundering 7.4 billion dollars of money and the Biden group’s take was 16.5 million

(zerohedge)

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

 

LET US BEGIN:

 

 

Let us head over to the comex:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A FAIR SIZED 1255 CONTRACTS TO A NEW RECORD LEVEL OF 719,750 WITH THE  SMALL GAIN OF $2.40 IN GOLD PRICING WITH RESPECT TO YESTERDAY’S // COMEX TRADING. 

 

WE ARE NOW IN THE NON ACTIVE DELIVERY MONTH OF NOV..  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 6402 EFP CONTRACTS WERE ISSUED:

 FOR NOV; 0 CONTRACTS: DEC: 6402 ; FEB: 0  AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  6402 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: 7657TOTAL CONTRACTS IN THAT 6409 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A FAIR SIZED 1255 COMEX CONTRACTS.

THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD.  THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE WITH THE CONSIDERABLE RAID INITIATED (AND FAILED), AS IT ROSE BY $2.40. AND THEY WERE  UNSUCCESSFUL IN FLEECING SOME LONGS FROM THE GOLD ARENA AS WE HAD A GOOD GAIN ON BOTH OUR EXCHANGES:

 

 

 

NET GAIN ON THE TWO EXCHANGES ::  7657 CONTRACTS OR 765,700 OZ OR 23.82 TONNES.

We are now in the  NON active contract month of NOV.  This month is generally the poorest delivery month of the year as must players prefer to go straight to the big active delivery month of December. Today we have 86 contracts still standing for a LOSS of 32 contracts. Yesterday we had 47 notices served upon so we have another strong gain of 15 contracts or an additional 1500 oz will stand as these guys refused to morph into London based forwards as well as negating a fiat bonus. We again have queue jumping by the bankers/official sector in their attempt to find physical metal on this side of the pond.

 

The next active delivery month after NOV is the  active contract month of DECEMBER. Here we had a loss of ONLY 17,750 contracts down to 315,630.   The next non active contract month of January saw its OI RISE by 7 contracts UP to 398.

The December contract month is still highly elevated and we should have a humdinger of a DECEMBER delivery month

 

 

 

 

TODAY’S NOTICES FILED:

WE HAD 59 NOTICES FILED TODAY AT THE COMEX FOR  5900 OZ. (0.1835 TONNES)

 

 

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And now for the wild silver comex results.

Total COMEX silver OI ROSE BY A STRONG SIZED 825 CONTRACTS FROM 220,882 UP TO 221,707 (AND CLOSER TO THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018.  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND TODAY’S CONSIDERABLE  OI COMEX GAIN OCCURRED WITH A 11 CENT GAIN IN PRICING.//YESTERDAY.

WE ARE NOW INTO THE NON ACTIVE DELIVERY MONTH OF NOV.  HERE WE HAVE 0 OPEN INTEREST STAND FOR DELIVERY WITH A LOSS OF 0 CONTRACTS. WE HAD 0 CONTACTS SERVED UPON YESTERDAY SO WE GAINED 0 CONTRACTS OR NIL ADDITIONAL OZ WILL STAND FOR DELIVERY IN THIS NON ACTIVE MONTH.  THE ALSO REFUSED TO MORPH INTO LONDON BASED FORWARDS AS WELL AS NEGATING A FIAT BONUS.

 

AFTER NOVEMBER WE HAVE THE  ACTIVE MONTH OF DECEMBER and here he has a loss of 12,033 contracts down to 80,987.  After December we have the non active month of January and here we see that we lost 42 contracts down to 489.

TODAY’S NUMBER OF NOTICES FILED:

 

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

Trading Volumes on the COMEX TODAY: 208,206  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  351,538  contracts

 

 

 

 

 

INITIAL standings for  NOV/GOLD

NOV 20/2019

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
385.81 oz
Brinks
Scotia
12 kilobars
Deposits to the Dealer Inventory in oz nil oz

 

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
59 notice(s)
 5900 OZ
(0.1835 TONNES)
No of oz to be served (notices)
27 contracts
(2700 oz)
0.083 TONNES
Total monthly oz gold served (contracts) so far this month
1668 notices
166,800 OZ
5.188 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 2 kilobar entries

 

 

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

 

we had 0 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii) Into everybody else:  0 oz

 

 

total gold deposits: nil  oz

 

very little gold arrives from outside/ Today  nothing arrives

 

we had 2 gold withdrawal from the customer account:

and both phony

i) Out of Brinks:  321.51 oz  10 kilobars

ii) Out of Scotia: 64.30 oz  2 kilobars.

 

 

 

total withdrawals:  385.81 oz

12 kilobars.

 

We had 1 adjustment

i)4404.442 oz was adjusted out of HSBC customer and this lands into the dealer account of HSBC

no pledged gold

 

FOR THE NOV 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 59 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 5 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

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To calculate the INITIAL total number of gold ounces standing for the NOV /2019. contract month, we take the total number of notices filed so far for the month (1668) x 100 oz , to which we add the difference between the open interest for the front month of  NOV (86 contract) minus the number of notices served upon today (59 x 100 oz per contract) equals 169,500 OZ OR 5.2721 TONNES) the number of ounces standing in this  active month of NOV

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

No of notices served (1668 x 100 oz)  + (86)OI for the front month minus the number of notices served upon today 59 x (100 oz )which equals 169,500 oz standing OR 5.2721 TONNES in this  active delivery month of NOV

We GAINED 15 contracts OR 1500 ADDITIONAL OZ WILL STAND AS THESE GUYS REFUSED TO MORPH INTO LONDON BASED FORWARDS AS WELL AS NEGATE A FIAT BONUS

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES.… WE HAVE ONLY 27.47 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS.

HERE IS WHAT STOOD DURING THESE PAST 4 MONTHS:  AUGUST 27.153 TONNES

SEPT:      5.4525 TONNES

 

OCT…………………………………………………………………………..     OCT…..   37.99 TONNES

AND NOW NOV……                                                                5.2721 tonnes

 

 

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 O TRANSACTIONS ON THIS FRONT, IN SEPT, 3 TRANSACTIONS FOR 2.60155 TONNES. IF WE INCLUDE THE PAST FEW DAYS OF SETTLEMENTS WE HAVE 4.127 TONNES SETTLED

IF WE ADD THE FOUR DELIVERY MONTHS: 75.867

TONNES- 4.128 TONNES DEEMED SETTLEMENT = 71.739 TONNES STANDING FOR METAL AGAINST 27.47 TONNES OF REGISTERED OR FOR SALE COMEX GOLD! THIS IS WHY GOLD IS SCARCE AT THE COMEX.

 

total registered or dealer gold:  1,128,667.177 oz or  35.106 tonnes 
which  includes the following:
a) registered gold that can be used to settle upon: 89,111.35 oz (27.71 tonnes)
b) pledged gold held at HSBC which cannot settle upon:  237,553.645 oz  ( 7,3889 tonnes)
total registered pledged  and eligible (customer) gold;   8,504,990.230 oz 264.54 tonnes
WHY ARE THEY NOT SETTLING?
THE COMEX IS AN ABSOLUTE FRAUD..WE HAVE ZERO SETTLEMENTS.

IN THE LAST 36 MONTHS 103 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.

WHY ARE THEY NOT SETTLING?

 

THE COMEX IS AN ABSOLUTE FRAUD..WE HAVE ZERO SETTLEMENTS.

end

And now for silver

AND NOW THE  DELIVERY MONTH OF NOV.

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
NOV. 20 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 nil oz

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
nil   oz
No of oz served today (contracts)
0
CONTRACT(S)
(NIL OZ)
No of oz to be served (notices)
0 contracts
 NIL oz)
Total monthly oz silver served (contracts)  532 contracts

2,660,000 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

i)we had  0 deposits into the customer account

into JPMorgan:   nil

 

ii) Into everybody else: 0  oz

 

 

 

 

 

 

 

 

 

 

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

JPMorgan now has 161.1 million oz of  total silver inventory or 51.10% of all official comex silver. (161.1 million/315.22 million

 

 

 

 

total customer deposits today:  nil   oz

 

we had 0 withdrawals out of the customer account:

 

 

 

 

 

total withdrawals; nil  oz

We had 1 adjustment:

i) Out of CNT:  601,546.800 oz was adjusted out of the CUSTOMER ACCOUNT and this lands into the DEALER account

 

total dealer silver:  77.754 million

total dealer + customer silver:  315.535 million oz

 

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The total number of notices filed today for the NOV 2019. contract month is represented by 0 contract(s) FOR nil oz

To calculate the number of silver ounces that will stand for delivery in NOV, we take the total number of notices filed for the month so far at 532 x 5,000 oz = 2,660,000 oz to which we add the difference between the open interest for the front month of NOV. (0) and the number of notices served upon today 0 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the NOV/2019 contract month: 532 (notices served so far) x 5000 oz + OI for front month of OCT (0)- number of notices served upon today (0) x 5000 oz equals 2,630,000 oz of silver standing for the OCT contract month. 

WE GAINED 0 contracts or an additional 30,000 oz of silver will stand at the comex as they guys refused to morph into London based forwards. For the past several weeks we have been witnessing queue jumping in both gold and silver.

 

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

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

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

 

 

TODAY’S ESTIMATED SILVER VOLUME:  51,168 CONTRACTS (we had considerable spreading activity..accumulation

 

CONFIRMED VOLUME FOR YESTERDAY: 120,621 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 120,621 CONTRACTS EQUATES to 603 million  OZ 86.1% OF ANNUAL GLOBAL PRODUCTION OF SILVER..makes sense!!

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

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

 

end

 

 

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NPV for Sprott

 

 

1. Sprott silver fund (PSLV): NAV RISES TO -1.50% ((NOV 20/2019)
2. Sprott gold fund (PHYS): premium to NAV FALLS TO -0.95% to NAV (NOV 20/2019 )
Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ -1.50%

(courtesy Sprott/GATA)

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

NAV 14.69 TRADING 14.15///DISCOUNT 3.71

 

 

END

 

And now the Gold inventory at the GLD/

NOV 20/WITH GOLD UP $.50 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 891.79 TONNES

NOV 19/WITH GOLD UP $2.40 TODAY: A HUGE CHANGE:  A MASSIVE PAPER WITHDRAWAL OF 4.98 TONNES OF GOLD FROM THE GLD AND THIS WITH A GOLD PRICE RISE?/INVENTORY RESTS AT 891.79 TONNES

NOV 18/WITH GOLD UP $3.50 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 896.77 TONNES

NOV 15//WITH GOLD DOWN $4.70 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 896.77 TONNES

NOV 14/WITH GOLD UP $10.00: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 896.77 TONNES

NOV 13/WITH GOLD UP $9.50 : A SMALL CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF .32 TONNES (PROBABLY TO PAY FOR FEES)/INVENTORY RESTS AT 896.77 TONNES

NOV 12: WITH GOLD DOWN $3.40 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER GOLD WITHDRAWAL OF 4.10 TONNES///INVENTORY RESTS AT 897.09 TONES

NOV 11/WITH GOLD DOWN $5.70 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 901.19 TONNES

NOV 8/WITH GOLD DOWN $3.50 TODAY: A MASSIVE WITHDRAWAL  OF 13.19 PAPER TONNES OF GOLD  INVENTORY AT THE GLD//INVENTORY RESTS AT 901.19 TONNES

NOV 7/2019 WITH GOLD DOWN $35.55 TODAY: A PAPER WITHDRAWAL OF 1.47 TONNES FROM THE GLD/INVENTORY RESTS AT 914.38 TONNES

NOV 6/2019  WITH GOLD UP $8.70 TODAY: A BIG CHANGES IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.18 TONNES INTO THE GLD//INVENTORY RESTS AT 915.85 TONNES

NOV 5/WITH GOLD DOWN $26.00//NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 914.67 TONNES

NOV 4/WITH GOLD DOWN $0.75 TODAY: A CONSIDERABLE WITHDRAWAL OF .88 TONNES FROM THE GLD//INVENTORY RESTS AT 914,67 TONNES

NOV 1/WITH GOLD DOWN $2.90 TODAY/NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 915.55 TONNES

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

NOV 20/2019/Inventory rests tonight at 891.79 tonnes

*IN LAST 708 TRADING DAYS: 44.58 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 608 TRADING DAYS: A NET 122.47 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

NOV 20/WITH SILVER UP 0 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 375.574 MILLION OZ//

NOV 19/WITH SILVER UP 11 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 375.574 MILLION OZ//

NOV 18/ WITH SILVER UP 3 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 1.074 MILLION OZ F FROM THE SLV///INVENTORY RESTS AT 375.574 MILLION OZ/

NOV 15//WITH SILVER DOWN 6 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 376.648 MILLION OZ//

NOV 14/ WITH SILVER UP 12 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 376.648 MILLION OZ/

NOV 13/WITH SILVER UP 20 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 2.524 MILLION /INVENTORY RESTS AT 376.648 MILLION OZ/

NOV 12/ WITH SILVER DOWN 10 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 379.172 MILLION OZ..

NOV 11/2019 WITH SILVER DOWN 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 379.172 MILLION OZ///

NOV 8/2019 WITH SILVER DOWN 19 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 379.172 MILLION OZ//

NOV 7/WITH SILVER DOWN 57 CENTS TODAY; NO CHANGES IN SILVER INVENTORY AT THE SLV// SLV INVENTORY RESTS AT 379.172

NOV 6/WITH SILVER UP ONE CENT TODAY: A HUGE  CHANGE IN SILVER INVENTORY AT THE SLV; A MASSIVE DEPOSIT OF 2.804 MILLION OZ///INVENTORY REST AT 379.172 MILLION OZ

NOV 5/WITH SILVER DOWN 44 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 376.368 MILLION OZ//

NOV 4/WITH SILVER UP ONE CENT TODAY: A SMALL CHANGE IN INVENTORY AT THE SLV A WITHDRAWAL OF 157,000 OZ TO PAY FOR FEES/INVENTORY RESTS AT 376.368 MILLION OZ//

NOV 1//WITH SILVER DOWN 3 CENTS TODAY: NO CHANGE IN INVENTORY AT THE SLV INVENTORY RESTS AT 376.525 MILLION OZ

 

 

NOV 18:  SLV INVENTORY

375.574 MILLION OZ

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 1.95/ and libor 6 month duration 1.91

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

G0LD LENDING RATE: – .04

 

XXXXXXXX

12 Month MM GOFO
+ 1.92%

LIBOR FOR 12 MONTH DURATION: 1.94

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.02

end

 

 

end

 

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

Hong Kong Uncertainty Highlights Importance of Physical Gold – GoldCore Podcast

Watch Podcast Here

GoldCore directors have been monitoring the political and economic situation in Hong Kong for the last year. It has clearly deteriorated in the last two weeks and we are now erring on the side of caution in terms of our client’s who store assets there.

We have contacted all GoldCore Secure Storage clients with assets in Hong Kong and strongly encouraged them to move their assets to Singapore.
GoldCore have also suspended trading of all gold and silver bars and coins in Hong Kong for the foreseeable future due to a fall in demand for assets stored there and the increasing risks.

Specifically we see the risks as follows:

  • The scale and nature of violent protest has worsened in recent days
  • A top police official warned this week that Hong Kong’s society “has been pushed to the brink of a total breakdown”
  • Hong Kong has been downgraded and the property market and economy have slowed sharply and they are in a deepening recession
  • Potential for a crack down by the Chinese government which may compromise the mobility, liquidity and marketability of assets
  • There is speculation that currency controls may be imposed in the coming weeks or months
  • We do not see the situation improving in the near term and indeed see it worsening which will impact Hong Kong politically and economically

We take the recent developments very seriously. We can not ignore the deteriorating political situation in recent days and the increasing medium and long term financial and economic risks.

Civil unrest is now destablising Hong Kong and political instability may compromise the liquidity and, in a worst case scenario, the move-ability and safety of assets. Already we have seen a deterioration in liquidity and premiums in Hong Kong given the political unrest and economic instability.

It is prudent to take steps to assuage concerns of clients and to manage the risks which we are concerned may materialise in the medium and long term.

It highlights the advantages of owning physical gold in terms of accessibility, portability and liquidity and the importance of owning gold in the safest jurisdictions.

NEWS and COMMENTARY

China accuses US of interference after Senate passes bills supporting Hong Kong protesters

Gold gains on U.S.-China tensions; markets eye Fed minutes

Keep Buying Gold to Brace for Crisis, Serbian Leader Tells Bank

Treasury yields tick lower amid US-China trade tensions

Excessive risk-taking and falling bank profitability cloud euro zone’s growth, ECB says

Watch Podcast Here

GOLD PRICES (LBMA – USD, GBP & EUR – AM/ PM Fix)

19-Nov-19 1464.90 1468.45, 1132.37 1134.23 & 1323.68 1325.86
18-Nov-19 1458.40 1467.65, 1124.86 1132.59 & 1318.10 1325.88
15-Nov-19 1465.60 1466.90, 1138.04 1136.41 & 1329.59 1327.84
14-Nov-19 1467.65 1466.65, 1141.39 1142.52 & 1334.24 1333.18
13-Nov-19 1463.45 1462.90, 1138.86 1140.62 & 1328.23 1328.46
12-Nov-19 1455.00 1452.05, 1134.03 1130.42 & 1319.69 1318.17
11-Nov-19 1465.50 1458.70, 1144.41 1132.39 & 1328.33 1321.87
08-Nov-19 1466.85 1464.15, 1144.58 1142.62 & 1328.09 1328.13
07-Nov-19 1484.10 1484.25, 1153.44 1156.82 & 1339.40 1341.76
06-Nov-19 1488.55 1486.05, 1155.26 1154.51 & 1342.23 1341.31

SIGN UP FOR OUR AWARD WINNING MARKET UPDATES HERE

Mark O’Byrne
Executive Director

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

iii) Other physical stories:

Jim Willie is back and discussing what will happen to the price of gold and silver and the banks

(courtesy Jim Willie/Chris Marcus)

Jim Willie: Gold and Silver Moonshot, Bank Failures

With no end to Federal Reserve easing in sight, what will the reaction be in the gold and silver markets?

Jim Willie, editor of The Hat Trick Letter on The Golden- Jackass.com talks about whether we might see a moonshot in the precious metals markets, the possibility of large bank failures, and how the debt bubbles get resolved.

Jim’s had quite a track record of forecasting over the years, and is darn fascinating to listen to. So to understand what’s coming before the rest of the market figures it out, click to watch the interview now!

Click here for Jim Willie: US Treasuries Are The New Sub-Prime Bond – Part 1

Chris Marcus

end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0343/ GETTING VERY DANGEROUSLY PAST 7:1

//OFFSHORE YUAN:  7.0386   /shanghai bourse CLOSED DOWN 22.94 POINTS OR 0.78%

HANG SANG CLOSED DOWN 204.19 POINTS OR 0.75%

 

2. Nikkei closed DOWN 144.08 POINTS OR 0.62%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index UP TO 98.02/Euro FALLS TO 1.1059

3b Japan 10 year bond yield: FALLS TO. –.11/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.47/ 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:: 55.44 and Brent: 61.30

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.37%/Italian 10 yr bond yield DOWN to 1.19% /SPAIN 10 YR BOND YIELD DOWN TO 0.40%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.56: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.40

3k Gold at $1473.7 silver at: 17.10   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 14/100 in roubles/dollar) 64.00

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 108.47 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 .9926 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0978 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.37%

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 1.74% early this morning. Thirty year rate at 2.21%

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

6.  TURKISH LIRA:  UP  TO 5.6975..

Global Markets Slide After China Says It’s Ready For “Worst Case Scenario” Following Senate Vote In Support Of Hong Kong Protest

Trade deal “optimism”, which together with QE4 (which even Bloomberg now admits) has helped push the S&P to all time highs, was decidedly lacking on Wednesday when the global mood soured after the U.S. Senate angered China by passing a bill requiring annual certification of Hong Kong’s autonomy and warning Beijing against violently suppressing protesters.

In response to the unanimous Senate vote, China Foreign Ministry said it strongly condemns the US Senate measure on Hong Kong and resolutely opposes the action, while calling for the US to stop interfering in Hong Kong and China affairs, as well as stop the latest bills on Hong Kong from becoming law. Furthermore, it added China must take necessary measures to safeguard its sovereignty and security, while it summoned the US Embassy representative in China and lodged stern representations with US over the Senate action on Hong Kong.

Then, shortly after 2am, China’s notorious twitter troll, Global Times editor Hu Xijin opined, stating that “China wants a deal but is prepared for the worst-case scenario, a prolonged trade war.

Hu Xijin 胡锡进

@HuXijin_GT

Few Chinese believe that China and the US can reach a deal soon. Given current poor China policy of the US, people tend to believe the significance of a trade deal, if reached, will be limited. China wants a deal but is prepared for the worst-case scenario, a prolonged trade war. https://twitter.com/Reuters/status/1197019236708896769 

Reuters

@Reuters

Trump says China would have to make a deal he likes and threatens to raise tariffs further if no trade deal is reached with Beijing https://reut.rs/2qvX9WK

Embedded video

President Donald Trump also threatened to up tariffs on Chinese goods if a trade deal is not reached soon.

As a result of the renewed flare-up in Sino-U.S. tensions and the creeping return of U.S. recession fears, world stocks were knocked off 22-month highs with US equity futures sliding as low as 3,105 amid a bid for bonds and other “safe” assets such as gold.

 

European markets tumbled half a percent at the open, edging further off recent four-year highs hit when it appeared – to some confused, naive souls and algorithms – that Washington and Beijing were about to agree the first phase of a trade deal. Europe’s Stoxx 600 Basic Resources Index dropped as much as 2.1%, trading below its 200-DMA, as nickel neared a bear market. Diversified miners fell, with BHP -1.8%, Anglo American -1.4%, Rio Tinto -2%, Glencore -1.4% (these 4 stocks account for ~64% of the index). Steelmakers also fell: ArcelorMittal -2.5%, Evraz -2.2%, Voestalpine -2.3%.

Wall Street futures were also lower amid a sea of red in global stocks, while oil prices suffered their biggest daily loss in seven weeks. MSCI’s All World index slipped 0.3%, ending a three-day winning streak.

 

“Markets have taken a bit of a wobble due to the talk about Hong Kong, but they had rallied a lot in recent weeks on expectations of a (trade) deal,” said Salman Ahmed, chief investment strategist at Lombard Odier.

Ahmed said both sides needed a deal to be signed — Trump cannot afford a recession because of his re-election bid next year, while China’s economy is slowing markedly. “I think we are looking at a short-term setback rather than a major issue that would derail the process. The bill still has to be signed into law by Trump so there’s a high probability he will use it as leverage against China.”

Earlier in the session, MSCI’s index of Asia-Pacific shares ex-Japan tumbled 0.7%, Japan’s Nikkei .N225 fell 0.8% and Shanghai blue chips lost 1%. Asia stocks fell, as the U.S. Senate passed a legislation supporting Hong Kong protesters, triggering China to repeat its threat to impose unspecified retaliation. Most markets in the region were down, with South Korea among the weakest. Hong Kong’s Hang Seng Index closed 0.8% lower, paring a world-beating rally earlier this week. In contrast, India’s benchmark Sensex headed for another record high, helped by a surge in telecommunications-related stocks. The passage of the U.S. bill on Tuesday may potentially complicate trade talks between the world’s two largest economies.

On Tuesday, US stocks closed just below record highs as world stocks remained just 0.5% off all-time peaks hit last year. “It was noticeable that fixed income markets rallied despite equity markets being stable, suggestive of a market that remains cautious about the growth outlook,” ANZ said in a note.

After falling in six out of the past seven sessions, US Treasury yields dropped again, with 10Y US paper sliding as much as 5bps, from 1.78% to 1.73% amid the flight to safety. In Europe, German Bunds yields fell for the third straight day to touch a 2-1/2 week, shrugging off European Central Bank Chief Economist Philip Lane’s comment that the euro zone economy would not fall into a recession. Bunds bull flattened after Germany’s 30-year bond sale meets steady demand, with bid-to-cover of 1.17x versus 1.20x prior, although the real subscription rate, which accounts for retention by the Bundesbank, increased to 0.91x against 0.76x at the previous sale. In Italy, BTPs outperformed euro-area peers, tightening the BTP-bund spread 2bps to 156bps.

“It’s all about sentiment on trade … We have this classical risk-off trade taking place again,” Rainer Guntermann, a rates strategist at Commerzbank, said.

In FX, the dollar and yen both rose versus major peers as the Senate vote threatened to complicate a potential U.S.-China trade deal. Australia’s dollar fell with other risk assets, while the euro snapped a four-day advance.

Moves on commodity prices imply fears of economic recession may be creeping back. Japan’s October exports fanned those fears further, tumbling at their quickest rate in three years, with shipments to China and the United States suffering big falls.

 

US WTI stocks rose far more than expected according to the latest API report, driving Brent crude into a 2.6% slide. Brent fell another half percent, inching towards the $60 mark last breached three weeks ago.

A marked flattening of the 2s10s Treasury curve also hints at a return of recession fears. The curve inverted earlier this year, returning to normal only after three U.S. interest rate cuts. But Federal Reserve officials have hinted there will be no further easing for now, a message the U.S. central bank may reiterate later in the day when it releases minutes from its last meeting. Markets are now pricing in just a 0.8% chance of a December rate cut

Dour forecasts from retailers Home Depot and Kohl’s also fueled worries about U.S. consumer spending, which has so far been extremely robust, in contrast to manufacturing. On the other hand, stellar results from Target have helped offset the downbeat retail sentiment somewhat.

“We’ve had a bit of topping out of the U.S. consumer in the past couple of months, possibly we are seeing some catch up between consumer and manufacturing sectors,” Lombard Odier’s Ahmed said.

In geopolitics, Israel attacked buildings belonging to Iranian militias in southern Damascus where heavy explosions were reported. At the same time, US aircraft carrier strike group Abraham Lincoln transited through the Strait of Hormuz on Tuesday according to US Navy statement, which officials had been considering and suggested would send a strong message to Iran. Elsewhere, Russia’s Foreign Ministry said the US decision to remove sanction waivers for the Iranian Fordow nuclear plant violates US international commitments and that Moscow continues to cooperate with Iran on Fordow reconfiguration.

Looking at the day ahead, it’s fairly light on data, with October’s PPI release from Germany and CPI release from Canada, along with the weekly MBA mortgage applications from the US. From central banks, the FOMC’s October minutes and the ECB’s Financial Stability Review will be released, while we’ll hear from the ECB’s Lane and Irish central bank governor Makhlouf. Earnings out today include Lowe’s and Target, and in the US tonight there’s another Democratic primary debate.

Market Snapshot

  • S&P 500 futures down 0.3% to 3,109.25
  • STOXX Europe 600 down 0.6% to 402.94
  • MXAP down 0.6% to 164.79
  • MXAPJ down 0.7% to 527.43
  • Nikkei down 0.6% to 23,148.57
  • Topix down 0.3% to 1,691.11
  • Hang Seng Index down 0.8% to 26,889.61
  • Shanghai Composite down 0.8% to 2,911.05
  • Sensex up 0.6% to 40,690.50
  • Australia S&P/ASX 200 down 1.4% to 6,722.42
  • Kospi down 1.3% to 2,125.32
  • German 10Y yield fell 3.3 bps to -0.372%
  • Euro down 0.1% to $1.1066
  • Brent Futures down 0.4% to $60.68/bbl
  • Italian 10Y yield rose 3.7 bps to 0.899%
  • Spanish 10Y yield fell 3.5 bps to 0.396%
  • Brent Futures down 0.4% to $60.68/bbl
  • Gold spot up 0.3% to $1,476.12
  • U.S. Dollar Index up 0.1% to 97.95

Top Overnight News

  • The U.S. Senate unanimously passed a bill aimed at supporting protesters in Hong Kong and warning China against a violent suppression of the demonstrations — drawing a rebuke from Beijing
  • The near-deal between the U.S. and China that fell apart six months ago is now being used as the benchmark to decide how much tariffs should be rolled back in the initial phase of a broader trade agreement, people familiar with the talks say
  • Labour Leader Jeremy Corbyn defied his negative ratings to draw level with Prime Minister Boris Johnson in a crucial television debate ahead of the U.K.’s general election. His plan to make the top 5% of earners pay more income tax could raise less than the party thinks, according to the Institute for Fiscal Studies
  • China’s base rate for new corporate bank loans dropped in November, following a series of policy-rate cuts from the central bank aimed at easing liquidity concerns
  • Japan’s export slump deepened in October, with the value of shipments dropping the most in three years, as the U.S.-China trade war weighs on global demand. Japan’s ruling coalition will ask the government to devote 10t yen in fresh spending for the extra budget it’s compiling, Nikkei reports, without attribution
  • Argentine President-elect Alberto Fernandez told International Monetary Fund Managing Director Kristalina Georgieva that he has a plan to grow the economy and tackle the nation’s debt after his predecessor agreed to a $56 billion credit line from the fund
  • Oil dropped the most in seven weeks as American crude stockpiles are forecast to rise and U.S.-China trade talks stall
  • President Donald Trump’s former special envoy to Ukraine said he only realized after the fact that the president and a few close advisers were putting “unacceptable” pressure on Ukraine to launch a politically motivated investigation
  • The European Central Bank warned of potential side effects from its loose monetary policy, highlighting how years of unprecedented economic stimulus is contributing to an erosion of financial stability. Low interest rates have encouraged excessive risk-taking by investment funds and insurers as well as in some real estate markets, the ECB said in its semi-annual Financial Stability Review released Wednesday
  • Traders should brace for heightened volatility in 2020 as the U.S. presidential election becomes one more reason for investors to hedge, according to TD Securities.
  • Helicopter money could be both the best and worst options for the European Central Bank if the euro-area slowdown morphed into a recession, according to a Peterson Institute paper.
  • European Central Bank watchers who monitor its every signal to gauge the future of interest rates would quite like new President Christine Lagarde to give them some clues when she breaks her silence this week.

Asian equity markets traded mostly lower as investor sentiment continued to hang on the US-China trade uncertainty and after the US Senate unanimously passed the legislation aimed at supporting Hong Kong protests, which was met by condemnation from China and spurred concerns of a derailment in trade talks. ASX 200 (-1.4%) and Nikkei 225 (-0.6%) were both negative with Australia pressured by losses in its largest weighted financials sector after Westpac was accused by AUSTRAC of 23mln breaches related to anti-money laundering, while the weakness in Japan was a function of the JPY-risk dynamic, tumultuous trade headlines and disappointing data including a larger than expected contraction in the nation’s Exports. Elsewhere, Hang Seng (-0.8%) and Shanghai Comp. (-0.8%) conformed to the subdued picture following China’s stern response to the US Senate’s passage of the Hong Kong Human Rights Bill, in which it called on the US to stop interfering in its affairs and suggested that it must take necessary measures to safeguard its sovereignty and security. However, losses in the mainland were somewhat limited by optimistic comments from US Commerce Secretary Ross that they still think there’s hope a China deal can be done and following the PBoC’s 5bps reduction to its Loan Prime Rates. Finally, 10yr JGBs tracked the gains in T-notes and was spurred by safe-haven demand following China’s retaliation threat, while the 20yr JGB auction was inconclusive as the results showed stronger demand at lower accepted prices.

Top Asian News

  • World’s Largest Wealth Manager Says Add Asian Stocks on Earnings
  • Nissan Plans First Bond Sale Since Scandals After Leader Changes

Concerns regarding the state of US/China trade negotiations are weighing on major European bourses (Euro Stoxx 50 -0.8%) on Wednesday morning, after the US Senate unanimously voted in favour of the Hong Kong Human Rights bill and sent it to the House of Representatives overnight, drawing strong condemnation from China and raising fears that trade talks will be complicated. Downside has extended during European trade, with negative comments from China’s Global Times Editor Hu Xijin only exacerbating things. In terms of the sectors, Energy (-1.6%) is the laggard, as yesterday’s steep decline weighs. Other more risk sensitive sectors including Consumer Discretionary (-1.0%), Tech (-0.5%) and Financials (-1.3%) are also suffering, while defensive sectors are holding up better. Moving on to the most notable stock specific movers; Nexi (+3.1%) tops the Stoxx 600 table, with the news that it is in preliminary talks with Intesa Sanpaolo (-0.4%) regarding a possible commercial partnership supportive. Moreover, positive broker moves for Novozymes (+2.5%) and ADP (+1.5%) from Citigroup and RBC respectively saw their shares move higher. In terms of the laggards; Kingfisher (-6.7%) sunk after downbeat earnings, in which the Co. noted there is clearly much to be done to improve performance and that they had not found the correct balance between group scale benefits and local market. Sage Group (-3.6%) is lower after underlying operating profit and EPS fell, although the Co. did increase its FY dividend. Swedbank (-3.8%) shares are lower, with US authorities investigating the Co’s Baltic unit to determine if transactions violated US sanctions on Russia; the Co.’s CEO said he was not aware of any violations and internal investigations to be concluded early next year. Elsewhere amongst the laggards are Wirecard (-2.8%); auditors at EY have reportedly refused to approve Co’s 2017 Singapore accounts, reported Handelsblatt citing documents.

Top European News

  • ECB Flags Risks to Financial Stability From Its Own Stimulus
  • Emirates Trims Boeing Wide-Body Plan as It Curbs Global Ambition
  • Corbyn Holds Johnson to Debate Draw: U.K. Campaign Trail

In FX, the broad Dollar and Index gains traction in early European trade amid underlying safe-haven support given the bleaker rhetoric out of China regarding an imminent Phase One deal and potential complications from the US Hong Kong bill. On trade, Global Time’s Chief Editor highlighted China’s readiness for a prolonged trade spat, aiding the DXY to test 98.00 to the upside (vs. an overnight low of ~97.80) shortly after the cash open and eclipse its 100 DMA (98.02) before stabilising below the round figure. Meanwhile, China condemned the US bill supporting Hong Kong protesters which was unanimously passed in Senate and makes way to the House for a re-vote, with some wondering whether this could be another wedge in trade talks despite the official previously highlighting the issues are separate. USD/CNH sees renewed upside in early hours (after little move on the expected PBoC LPR cut) with the pair now above its 21 and 100 DMAs (7.0288 and 7.0411) and at the top of its current 7.0250-0430 intraday range.

  • AUD, NZD, CAD – All moving in-line with the current trade-induced risk aversion. The non-US Dollars are all pressured in wake of the aforementioned pilling of bearish-sentiment factors which dwindle the prospect of a long-lasting truce between the two nations. AUD/USD reversed a bulk of yesterday’s gains and retested 0.6800 to the downside at one point, currently residing just off the lower bound of today’s 0.6800-30 parameter. Similarly, its Kiwi counterpart fell below its 100 DMA (0.6432) in overnight trade following China’s condemnation of US Senate’s action and tested support at 0.6400 (vs. high of 0.6435). The Loonie meanwhile bears the brunt of softer energy prices but looks forwards to the Canadian CPI metrics with the headline YY remaining steady at 1.9%. USD/CAD took out its 200 DMA (1.3275) in early EU hours as it takes a stab at 1.3300 to the upside.
  • JPY, CHF – Supported by their safe-haven statuses as the trade landscape shifts away from the recent hopefulness. USD/JPY meanders a touch below the 108.50 mark ahead of a Fib level and its 50 DMA both at 108.26 whilst notable option expiries include USD 1bln at strikes 108.50-65. Correspondingly, the Franc sees modest gains with EUR/CHF back under its 100 DMA and 21 DMAs both at 1.0960.
  • GBP, EUR – Both modestly softer and largely at the whim of a firming Buck. Last night’s UK leadership debate provided little by way of new substance, whilst a YouGov snap poll on performance (1600 respondents) showed the leaders more-or-less neck and neck, and the election survey from the same pollster indicated a slight narrowing in Tory’s lead over Labour. GBP/USD hovers around a 38.2.% Fib level just above 1.2900 having dipped below the figure earlier on a firmer Buck. EUR/USD losses more ground below its 100 DMA (1.1089) but found a base at 1.1060 ahead of its 21 DMA at 1.1042.

In commodities, crude futures are relatively flat following a mammoth sell-off in the prior session where anti-production cut commentary out of Russia and bearish supply updates in Europe saw the complex sell off. There was little by way of reactions to last night’s mixed API Inventory data; headline crude stocks built much more than expected but gasoline and distillates posted larger than expected draws, and front month WTI and Brent contracts stabilised around the USD 55.20/bbl and USD 60.80/bbl levels overnight, although both have since crept slightly lower since the arrival of European players. Subdued risk appetite has lent a hand to gold, which advanced to near the USD 1480/oz mark before pulling back slightly, with upside being capped by a firmer buck. Meanwhile, copper was caught between the conflicting forces of the PBoC’s latest LPR cuts and negative developments on the US/China trade front overnight, but has since seen some upside since the arrival of European players, making new highs for the week at USD 2.666/lbs.

US Event Calendar

  • 7am: MBA Mortgage Applications, prior 9.6%
  • 2pm: FOMC Meeting Minutes

DB’s Jim Reid concludes the overnight wrap

If you’re looking to top up the performance of your fund before year end you could do worse than to visit Blackhall Colliery, County Durham, North England. This week has seen the twelfth time in five years that a bundle of notes totalling exactly £2000 pounds has been found in a bag on a street and handed into Police. If twelve bags have been handed in, how many have actually been “absorbed” into the local economy. I would wager many many more. Police are totally confused by these “drops” and made this info public late yesterday. Maybe we’ll get the 21st century version of The Gold Rush on our hands today.

There wasn’t quite the same rush in markets yesterday as Equity markets traded in the red for most of the day after some poor US retail earnings, before more positive trade headlines spurred risk assets back towards flat into the close. The S&P 500 had been down as much as -0.27% but it ended -0.06%. The DOW lost -0.36%, with most of that attributable to Home Depot’s -5.44% move after they said that comparable sales in Q3 rose +3.6% (vs. +4.6% expected), and downgraded their comparable sales growth guidance to 3.5%, having been 4.0% previously. Kohl’s (-19.49%) also reported soft demand, lowering their guidance for adjusted annual earnings per diluted share to $4.75-$4.95, down from $5.15-$5.45 previously. Investor attention will now turn to Lowe’s (-1.41%) and Target (-0.96%), both of whom are releasing results today.

Offsetting the poor earnings reports were some optimistic trade headlines, with Bloomberg reporting that the US-China deal that fell through in May is now the benchmark in terms of the amount of tariffs to be rolled back in an initial agreement between the two sides. The reports suggest that China is asking that all tariffs applied since May be immediately removed, then earlier tariffs removed in tranches moving forward. If realised, this would be a notably more risk-positive outcome than most had expected. However, the article also noted apparent differences among US officials as to how comprehensive the phase one deal would be and how much tariffs would be rolled back. So if this is right it doesn’t look as though there’s an agreed viewpoint within the US administration. So hard to get too excited one way or other by the story.

Staying with trade, in a move that could well have significance for upcoming discussions, the US Senate unanimously passed the Hong Kong Human Rights and Democracy Act that would require the US State Department to assess each year whether Hong Kong has sufficiently “autonomous decision-making” to justify retaining its different tariff treatment compared to China. Last month the House of Representatives passed a modestly different version, so the two will now be reconciled in committee. President Trump has been silent on the bill. Both the Chinese and Hong Kong governments expressed disappointment over the legislation. Chinese Foreign Ministry spokesman Geng Shuang urged the US to take immediate measures to prevent the bill from becoming law, although it appears to have sufficient support to over-ride a Presidential veto.

Staying with trade themes, Bloomberg reported overnight that China’s antitrust regulator is closely monitoring US chipmaker Diodes Inc.’s proposed $428mn takeover of Taiwan’s Lite-On Semiconductor Corp, responding to complaints that a deal will deliver the Taiwanese company’s Shanghai-based affiliate On-Bright Electronics Inc. into US hands. Lite-On Semiconductor shares fell by their daily limit of 10% overnight.

Overnight Asian markets are trading lower as the passage of the Hong Kong bill casts a shadow over the US-China trade deal. The Nikkei (-0.66%), Hang Seng (-0.67%), Shanghai Comp (-0.39%) and Kospi (-1.15%) are all lower. Elsewhere, futures on the S&P 500 are -0.14% lower and yields on 10y USTs are down -3.5bps this morning. As for overnight data releases, Japan’s October adjusted trade balance came in at JPY -34.7bn (vs. JPY 248.1bn expected) as declines in exports (-9.2% yoy vs. -7.5% yoy expected) outpaced small declines in imports (-14.8% yoy vs. -15.2 yoy expected).

The main highlight today will be the FOMC minutes, which will likely signal that policy is on hold for now, barring a material reassessment in the outlook, per Chair Powell’s recent rhetoric. It’ll be interesting to see if the minutes shed any light on what exactly would qualify as a “material reassessment,” as well as details on how deep the internal disagreement over the rate cut was. Also any updates on the policy review, and any new thoughts on dealing with funding market disruptions will be looked for. Staying with the Fed, the New York Fed’s Williams spoke yesterday, and maintained his existing rhetoric, saying that “the current stance of monetary policy seems appropriate” for the economy’s current position. He also noted that the current system of ad hoc repo operations is a temporary solution to problems in funding markets, the need for which will hopefully be obviated by the Fed’s balance sheet expansion currently underway.

Turning to sovereign bonds, peripheral spreads widened yesterday, with Italian debt leading the sell-off. 10yr BTP yields were up +3.8bps, while Spanish (+1.4bps) and Portuguese (+2.3bps) yields also rose. Sovereign debt elsewhere advanced however, with 10yr Bunds -0.5bps and Treasuries -3.4bps to 1.781%. The 2s10s curve flattened for a 5th consecutive session, taking it -8.8bps lower over the last week (-3.3bps yesterday). Meanwhile in commodities, oil fell for a second successive day, with both WTI (-3.24%) and Brent Crude (-2.51%) losing ground, as expectations are for official data to show a large inventory build later today.

Here in the UK, with just over 3 weeks now until the general election, last night’s TV leader’s debate is unlikely to change anyone’s view of either candidate measurably. A YouGov poll people canvassed immediately after the event showed that Johnson edged it by a wafer thin 51%/49%. On balance given how far Corbyn’s personal ratings are below Johnson’s and how far Labour are behind in the polls, then such a split could be seen a small victory for the opposition. Sterling is trading down -0.13% this morning.

Indeed a poll out yesterday from Kantar put the Conservatives 18pts ahead of Labour, their biggest lead of the campaign so far in any opinion poll. The Tories were on 45% (up 8pts on the previous week), Labour on 27% (unchanged), while the Brexit Party collapsed to 2% (down 7pts). However, another poll from YouGov showed the Tories 12pts ahead of Labour, down from a 17pt lead on Friday, so it’s a slightly volatile picture even if the range of the lead continues to be in the 8-18 percentage point area.

We got some strong housing data out of the US yesterday, with building permits rising to a seasonally-adjusted annual rate of 1461k in October (vs. 1385k expected), their highest level since May 2007. Looking within the data, all four US regions saw an increase in building permits, and the less-volatile single-family permits also rose to a post-crisis high of 909k. October’s housing starts were also up to 1314k (vs. 1320k expected).

To the day ahead now, and it’s fairly light on data, with October’s PPI release from Germany and CPI release from Canada, along with the weekly MBA mortgage applications from the US. From central banks, the FOMC’s October minutes and the ECB’s Financial Stability Review will be released, while we’ll hear from the ECB’s Lane and Irish central bank governor Makhlouf. Earnings out today include Lowe’s and Target, and in the US tonight there’s another Democratic primary debate.

 

 

3A/ASIAN AFFAIRS

I)WEDNESDAY MORNING/ TUESDAY NIGHT: 

SHANGHAI CLOSED DOWN 22.94 POINTS OR 0.78%  //Hang Sang CLOSED DOWN 204.19 POINTS OR 0.75%   /The Nikkei closed DOWN 204.19 POINTS OR 0.75%//Australia’s all ordinaires CLOSED DOWN 1.24%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0343 /Oil UP TO 55.44 dollars per barrel for WTI and 61.30 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0343 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0386 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

China is secretly de dollarizing as trade tensions escalate

(zerohedge)

China “Discreetly” De-Dollarizing Amid Ongoing Trade Tensions

Ongoing trade conflicts have forced China to increase financial decoupling between the US. China wants to decrease its US exposure and diversify its reserves away from dollars, according to economists at Australia and New Zealand Banking Group (ANZ).

“The ongoing trade war and geopolitical issues have increased the risk of a financial decoupling between China and the US,” Raymond Yeung, Greater China chief economist, wrote in a recent note.

ANZ predicts Beijing will quickly diversify its foreign exchange reserves away from dollars.

“Although China still allocates a high share of its FX exchange reserves to the US dollar, estimated at around 59% as of June 2019, the pace of diversification into other currencies will likely quicken going forward,” Yeung said.

 

ANZ told CNBC that China would likely diversify into British pounds, Euros, and Japanese yen… and gold.

Source: Bloomberg

ANZ believes China is building “shadow reserves” as a way to diversify from the dollar.

“In fact, we believe that the Chinese government has already discreetly diversified its offshore portfolios to include alternative investments,” the report said.

Yeung said, “factory-dollar recycling” has contributed to “the global prominence of the US dollar over the past decade. However, if China initiates a convertible standard superior to the fiat-money regime, not only will it gain a market following, but it will also boost the global acceptance of the RMB.”

Although the dollar is the world’s reserve currency, Yeung warns it could be displaced in the coming decade.

China has spent the last six years, reducing its holdings of US Treasurys.

 

Efforts of de-dollarization by China could reduce the world’s reliance on the dollar by 2030, and at some point, catapult the renminbi into the hot seat.

Remember, nothing lasts forever

END
China/Hong Kong/USA
The big news last night:  The Senate passes a bill supporting the Hong Kong protests which infuriates Mainland China.
(zerohedge)

Trade Deal In Jeopardy After Senate Passes Bill Supporting Hong Kong Protests, Infuriating China

In a widely anticipated move, just after 6pm ET on Tuesday, the Senate unanimously passed a bipartisan bill, S.1838,  showing support for pro-democracy protesters in Hong Kong by requiring an annual review of whether the city is sufficiently autonomous from Beijing to justify its special trading status. In doing so, the Senate has delivered a warning to China against a violent suppression of the demonstrations, a stark contrast to President Donald Trump’s near-silence on the issue, the result of a behind the scenes agreement whereby China would allow the S&P to rise indefinitely as long as Trump kept his mouth shut.

As we reported last week, the vote marks the most aggressively diplomatic challenge to the government in Beijing just as the US and China seek to close the “Phase 1” of their agreement to end their trade war. The Senate measure would require annual reviews of Hong Kong’s special status under U.S. law to assess the extent to which China has chipped away the city’s autonomy; in light of recent events, Hong Kong would not pass. It’s unclear what would happen next.

As Bloomberg notes, the House unanimously passed a similar bill last month, but slight differences mean both chambers still have to pass the same version before sending it to the president.

”The United States has treated commerce and trade with Hong Kong differently than it has commercial and trade activity with the mainland of China,” said Republican Senator Marco Rubio of Florida, the bill’s lead sponsor. “But what’s happened over the last few years is the steady effort on the part of Chinese authorities to erode that autonomy and those freedoms”, he added on the Senate floor.

 

The Senate bill passed by unanimous consent, which means there was no roll call vote because no senators objected to it. Rubio said on Twitter before the vote Tuesday that the bill, S. 1838, will “head over to the U.S. House & then hopefully swiftly to the President.”

That is one option: The House could simply take up the Senate bill. The other option would be to reconcile the differences between the two versions and have both chambers vote on the compromise bill. New Jersey Representative Chris Smith, the lead Republican sponsor of the House bill, said he expects the House Foreign Affairs and Senate Foreign Relations Committees to go for the latter option to work out the slight differences. He said the resulting compromise could be included in a defense bill slated for a vote later this year.

* * *

The legislation comes at a difficult time for Trump as his administration is trying to complete the first phase of a long-awaited trade deal with China. Earlier on Tuesday, Vice President Mike Pence said that it would be difficult for the U.S. to sign a trade agreement with China if the demonstrations in Hong Kong are met with violence.

“The president’s made it clear it’ll be very hard for us to do a deal with China if there’s any violence or if that matter is not treated properly and humanely,” Pence said in an interview with Indianapolis-based radio host Tony Katz.

Another prominent Republican, Senate Majority Leader Mitch McConnell urged Trump to personally voice support for the protesters on Monday, which Trump has refused to do.

“We have to get it passed and we have to get it passed quickly,” Smith said. The legislation tells protesters that “Congress has their back, that we are fully supportive of democracy and rule of law in Hong Kong.”

“It tells Xi Jinping that there’s a price,” Smith said of China’s president. “There’s one provision after another that says, ‘we’re not kidding.’” The bill would also sanction Chinese officials deemed responsible for undermining Hong Kong’s autonomy.

The bit question now is how will China react: the Chinese Foreign Ministry has repeatedly warned that there would be “strong countermeasures” for passing such legislation. That could complicate the delicate negotiations between the world’s two largest economies to get the trade deal over the finish line.

“What was already complicated just got more complicated, and the bill’s passage adds to the growing list of political reasons why Xi and Trump are unlikely to find a compromise,” said Jude Blanchette, a China expert at the Center for Strategic and International Studies. “While Xi has more control over the domestic political environment in China, he’s not immune from the bad optics of negotiating with a government that he claims is tampering with his own political system.”

* * *

It remains unclear whether Trump will veto the bill, opening himself up to accusations he has been in bed with Beijing all along. So far Trump has not indicated whether he would sign the legislation if it gets to his desk.

 

Another complication: the timeline for completing the trade agreement could collide with this legislation landing on Trump’s desk. A congressional aide told Bloomberg the Senate measure was drafted with help from Treasury and State Department officials, but a senior administration official on Monday cautioned that Trump’s seal of approval is the only one that matters.

Because the Hong Kong bill passed both the House and the Senate without a single lawmaker objecting, there would probably be enough support to override a presidential veto.

“Today’s vote sends a clear message that the United States will continue to stand with the people of Hong Kong as they battle Beijing’s imperialism,” said Republican Senator Josh Hawley of Missouri. “The Chinese Communist Party’s quest for power across the region is a direct threat to America’s security and prosperity.”

S&P futures dipped modestly on the news of the bill’s unanimous passage…

… although that isn’t saying much for a market that is so hypnotized by the Fed’s “NOT QE” that it barely if ever responds to any actual news.

END

HONG KONG/SWITZERLAND

This is a good Bellwether on how the economy in Hong Kong is collapsing: Swiss watch exports to Hong Kong crash

(zerohedge)

 

Swiss Watch Exports To Hong Kong Crash Amid Social Unrest

This morning we have some very telling data of the dire economic situation in Hong Kong: Swiss watch exports to Hong Kong crashed in October as social unrest continues to gain momentum in the city as demand for luxury goods evaporates.

The Federation of the Swiss Watch Industry published a new report Tuesday on Swiss watchmaking for October, detailing how shipments of steel and precious metal watches to Hong Kong plunged by as much as 30%.

Hong Kong’s tourism industry has suffered the worst downturn in a decade, as violent protests shut down streets and major shopping districts. Protests have become more violent in the last several months, forcing many wealthy mainland Chinese to abandon their visit to the city as it plummets into economic and social collapse.

 

The city entered a technical recession in the last several weeks, with its retail industry, comprised of the world’s luxury brands, experienced some of the worst declines in sales ever.

Watchmakers, particularly ones from Switzerland, have been reeling from the plunge in sales, as at least 30 major shopping malls have had to shut down, on and off across the city for the last five months amid continuing social unrest.

Luxury goods, such as jewelry, are usually half the cost in Hong Kong than in mainland China, but with protests continuing to spiral out of control, and the tourism industry collapsed as shopping districts are shut down, it seems that the Hong Kong crisis is sparking a slowdown contagion across the world.

Though Swiss trade with Hong Kong fell, Swiss watchmakers saw global exports increase by 1.5% in October. Growth in the first ten months was around 2.7%, far from last year’s annual pace of 6.3%, indicating the global economy has yet to bottom.

END

Hong Kong

This is not good at all: a shackled , blindfolded and hooded ex Hong Kong consulate worker was tortured by Chinese agents

(zerohedge)

“Shackled, Blindfolded and Hooded:” Ex-Hong Kong Consulate Worker Tortured By Chinese Agents

Simon Cheng, a Hong Kong citizen who worked for the British Consulate-General Hong Kong, was arrested and tortured by Chinese agents for 15 days in August for his alleged involvement in supporting pro-democracy protests in Hong Kong, reported BBC News. Cheng told BBC he was “shackled, blindfolded, and hooded” and was beat into submission.

Chinese agents accused him of sparking political unrest in Hong Kong that has since led to the economic and social collapse of the city.

“They said I’m a state enemy and I’m a traitor, and also they asked whether the consulate instructed me to mingle with the protest”, he told the BBC, adding that “They wanted to know what role the U.K. had in the Hong Kong protests – they asked what support, money, and equipment we were giving to the protesters.

 

“I told them I want to make it 100% clear, the U.K. didn’t assign resources or help with the protests.”

Foreign Secretary Dominic Raab released a statement that his office, the British Consulate-General Hong Kong, was “shocked and appalled by the mistreatment” Cheng experienced during the 15-day detainment, which he was tortured. “I have made clear we expect the Chinese authorities to investigate and hold those responsible to account,” Raab said.

Hong Kong lawmakers have said Cheng’s arrest is a prime example of the abuse of the legal system in China and why Hong Kongers have been protesting over the last five months to prevent the city from passing an extradition bill to China.

“Beijing is throwing down further signs of disrespect for the rule of law and taking a vindictive attitude toward Hong Kong citizens, particularly those with links to foreign countries,” Willy Lam, an adjunct professor at the Chinese University of Hong Kong’s Centre for China Studies, who spoke with Bloomberg. “This might resonate very badly, poison the atmosphere and prevent a peaceful and rational solution to the confrontation between the protesters and the SAR government.”

 

Cheng said secret agents identified him as the “mastermind behind the protests,” which allegations he rejected; agents also threatened him with long-term jail time, causing him to consider suicide.

Raab said, “I summoned the Chinese Ambassador to express our outrage at the brutal and disgraceful treatment of Cheng, in violation of China’s international obligations.”

Cheng told BBC that it’s too dangerous for him and his fiancee to return to Hong Kong or mainland China. He fears for his safety and is seeking a new life in the UK.

END

Michael Snyder explains  that the USA’s relation with China has just been destroyed by the Senate vote on Human rights and Democracy in H.K.

(Michael Snyder)

US Relations With China Were Just Destroyed, And Nothing Will Ever Be The Same Again

Authored by Michael Snyder via TheMostImportantNews.com,

Our relationship with China just went from bad to worse, and most Americans don’t even realize that we just witnessed one of the most critical foreign policy decisions of this century. The U.S. Senate just unanimously passed the “Hong Kong Human Rights and Democracy Act of 2019”, and the Chinese are absolutely seething with anger. Violent protests have been rocking Hong Kong for months, and the Chinese have repeatedly accused the United States of being behind the protests. Whether that is true or not, the U.S. Senate has openly sided with the protesters by passing this bill, and there is no turning back now.

The protesters in Hong Kong have been waving American flags, singing our national anthem and they have made it exceedingly clear that they want independence from China. And all of us should certainly be able to understand why they would want that, because China is a deeply tyrannical regime. But to the Chinese government, this move by the U.S. Senate is essentially an assault on China itself. They are going to argue that the U.S. is inciting a revolution in Hong Kong, and after what the Senate has just done it will be very difficult to claim that is not true.

The Chinese take matters of internal security very seriously, and the status of Hong Kong is one of those issues that they are super sensitive about. China will never, ever compromise when it comes to Hong Kong, and if the U.S. keeps pushing this issue it could literally take us to the brink of a military conflict.

And you can forget about a comprehensive trade agreement ever happening. Even if a Democrat is elected in 2020, that Democrat is going to back what the Senate just did. That is why it was such a major deal that this bill passed by unanimous consent. It sent a message to the Chinese that Republicans and Democrats are united on this issue and that the next election is not going to change anything.

And the trade deal that President Trump was trying to put together was already on exceedingly shaky ground. “Phase one” was extremely limited, nothing was ever put in writing, and nothing was ever signed. And in recent days it became quite clear that both sides couldn’t even agree about what “phase one” was supposed to cover

A spokesperson for China’s Commerce Ministry said earlier this month that both countries had agreed to cancel some existing tariffs simultaneously. Trump later said that he had not agreed to scrap the tariffs, lowering hopes for a deal.

“They’d like to have a rollback. I haven’t agreed to anything,” the president said.

On Tuesday, Trump was visibly frustrated by how things are going with China, and he publicly warned the Chinese that he could soon “raise the tariffs even higher”

President Donald Trump threatened higher tariffs on Chinese goods if that country does not make a deal on trade.

The comments came during a meeting with the president’s Cabinet on Tuesday. The U.S. and China, the world’s two largest economies, have been locked in an apparent stalemate in trade negotiations that have lasted nearly two years.

“If we don’t make a deal with China, I’ll just raise the tariffs even higher,” Trump said in the meeting.

Unfortunately, raising tariffs isn’t going to fix anything at this point.

In fact, Trump can raise tariffs until the cows come home but it isn’t going to cause the Chinese to budge.

That is because on Tuesday evening everything changed.

When they passed the “Hong Kong Human Rights and Democracy Act of 2019” by unanimous consent, the U.S. Senate essentially doused our relationship with China with kerosene and set it on fire. The following comes from Zero Hedge

In a widely anticipated move, just after 6pm ET on Tuesday, the Senate unanimously passed a bipartisan bill, S.1838, showing support for pro-democracy protesters in Hong Kong by requiring an annual review of whether the city is sufficiently autonomous from Beijing to justify its special trading status. In doing so, the Senate has delivered a warning to China against a violent suppression of the demonstrations, a stark contrast to President Donald Trump’s near-silence on the issue, the result of a behind the scenes agreement whereby China would allow the S&P to rise indefinitely as long as Trump kept his mouth shut.

As we reported last week, the vote marks the most aggressively diplomatic challenge to the government in Beijing just as the US and China seek to close the “Phase 1” of their agreement to end their trade war. The Senate measure would require annual reviews of Hong Kong’s special status under U.S. law to assess the extent to which China has chipped away the city’s autonomy; in light of recent events, Hong Kong would not pass. It’s unclear what would happen next.

I am finding it difficult to find the words to describe what this means to the Chinese.

We have deeply insulted their national honor, and our relationship with them will never be the same again.

 

Many will debate whether standing up to China on this issue was the right thing to do, but in this article I am trying to get you to understand that there will be severe consequences for what the U.S. Senate just did.

There isn’t going to be a comprehensive trade deal, the global economy is going to suffer greatly, and the Chinese now consider us to be their primary global adversary.

Shortly after the Senate passed the bill, a strongly worded statement was released by the Chinese government. The following excerpt comes from the first two paragraphs of that statement

On November 19th, the US Senate passed the “Hong Kong Bill of Rights on Human Rights and Democracy.” The bill disregards the facts, confuses right and wrong, violates the axioms, plays with double standards, openly intervenes in Hong Kong affairs, interferes in China’s internal affairs, and seriously violates the basic norms of international law and international relations. The Chinese side strongly condemns and resolutely opposes this.

In the past five months, the persistent violent criminal acts in Hong Kong have seriously jeopardized the safety of the public’s life and property, seriously trampled on the rule of law and social order, seriously undermined Hong Kong’s prosperity and stability, and seriously challenged the bottom line of the “one country, two systems” principle. At present, what Hong Kong faces is not the so-called human rights and democracy issues, but the issue of ending the storms, maintaining the rule of law and restoring order as soon as possible. The Chinese central government will continue to firmly support the Hong Kong SAR Government in its administration of the law, firmly support the Hong Kong police in law enforcement, and firmly support the Hong Kong Judiciary in punishing violent criminals in accordance with the law, protecting the lives and property of Hong Kong residents and maintaining Hong Kong’s prosperity and stability.

For a long time I have been warning that U.S. relations with China would greatly deteriorate, and this is the biggest blow that we have seen yet.

The U.S. and China are now enemies, and ultimately that is going to result in a tremendous amount of pain for the entire planet.

end

4/EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Saudi Arabia/USA/Straits of Hormuz/Iran

Trump to send 3,000 troops to the Kingdom as a new carrier enters the Gulf to protect ships

(zerohedge)

Trump Notifies Congress More Troops Headed To Saudi Arabia As Carrier Enters Hormuz

So much for drawing down in the Middle East. President Trump notified Congress on Tuesday that more American troops are en route to Saudi Arabia, which will bring their overall numbers to about 3,000 in the kingdom.

These personnel will remain deployed as long as their presence is required to fulfill the missions described above,” the president said in a letter.

The official White House notification of Congressional members described the American military presence there as essential in countering Iran’s influence in the region.

 

US troops arrived at Prince Sultan Air Base in Saudi Arabia earlier this summer. Image source: US Air Force

Forces were deployed “to assure our partners, deter further Iranian provocative behavior, and bolster regional defensive capabilities,” the letter addressed to the House of Representatives stated.

Last month the Pentagon announced the extra troop deployments as well as military hardware, including Patriot missiles to the kingdom, after the prior September drone attacks on Saudi Aramco facilities.

Interestingly, that prior announcement took place just as Trump controversially pushed to withdraw US forces from Syria, something which ended in merely moving troops from the Turkish border and into Syria’s oil fields east of the Euphrates.

“Iran has continued to threaten the security of the region, including by attacking oil and natural gas facilities in the Kingdom of Saudi Arabia on Sept. 14, 2019,” Trump said in the letter.

Nader Uskowi@nuskowi

Today U.S. Navy’s USS Abraham Lincoln (CVN 72) – a Nimitz-class aircraft carrier – escorted by air defense and guided missile destroyers- enters the Strait of Hormuz. Abe Lincoln can field up to 90 aircraft

View image on Twitter

The president said missiles and radar equipment will “improve defenses against air and missile threats” and includes expeditionary wing to assist Saudi aircraft (which, it should be noted, were also purchased from the US).

All remaining forces will be in place “in the coming weeks” he told Congress, which will cap out at “approximately 3,000” according to the letter.

Crucially, this also came as the US aircraft carrier strike group Abraham Lincoln entered the Strait of Hormuz on Tuesday, where US forces will continue to deter any acts of Iranian ‘aggression’ against international shipping.

END

IRAN

IRAN TURNS OFF THE INTERNET AS PROTESTS ESCALATE

this is very dangerous!!

(courtesy zerohedge)

Over 100 Protesters Killed In Iran Amid Largest Internet Shutdown In Nation’s History

Now five days into widespread protests in some one hundred Iranian cities after a dramatic gas price hike last Friday, Amnesty International reports that at least 106 have been killed.

However, “The organisation believes that the real death toll may be much higher, with some reports suggesting as many as 200 have been killed,” Amnesty said in a statement.

This as the government has cut off internet access across much of the country, resulting in few videos of clashes with police reaching the West, as in the early couple of days of the unrest.

 

Image source: AFP/Getty Images

A statement from the global outage monitor Oracle’s Internet Intelligence called it the largest blockage ever observed in Iran:

Protesters took to the streets shortly after the government announced an increase in fuel prices by as much as 300%. Social media images showed banks, petrol stations and government buildings set ablaze by rioters. Some protesters chanted “down with Khamenei,” according to videos, referring to the country’s Supreme Leader Ayatollah Ali Khamenei.

The internet blackout started on Saturday evening and continued through Monday, according to internet watchdogs. Oracle’s Internet Intelligence called it the “largest internet shutdown ever observed in Iran.”

The United Nations is now urging Iran to lift the internet blockage and to show restraint after what the international body called the “clearly very serious” extent of casualties.

The UN high commissioner also acknowledged it is looking into reports of live ammunition being used on demonstrators, which activists say there’s ample video evidence for.

The government-imposed internet block began on Saturday, leaving some 80 million citizens without online access.

NetBlocks.org

@netblocks

Update: 65 hours after implemented a near-total internet shutdown, some of the last remaining networks are now being cut and connectivity to the outside world has fallen further to 4% of normal levels 📉

📰https://netblocks.org/reports/internet-disrupted-in-iran-amid-fuel-protests-in-multiple-cities-pA25L18b 

Embedded video

“We are especially alarmed that the use of live ammunition has allegedly caused a significant number of deaths across the country,” UN spokesman Rupert Colville said.

With the information blackout he described it as “extremely difficult” to get an accurate overall death toll.

Gunfire has been observed in some of the recent unverified videos to have made it out of Iran:

Rana Rahimpour

@ranarahimpour

Breaking: Amnesty International says at least 106 people have been killed in 21 cities across Iran.

Embedded video

Official Iranian state figures put the death toll at 12, which included numbers of total protest and police deaths.

According to Tehran security officials, over 600 have also been arrested.

پسرخاله@Pesarkhal

Direct shooting of security forces at protesters in Marivan – Iran

Embedded video

Days ago the US State Department predictably came out in favor of more protests, in a volatile situation in the sanctions-ravaged country which has already witnessed banks and gas stations torched in anger over soaring gas prices after the country’s leadership slashed petrol subsidies.

“The proud Iranian people are not staying silent about the government’s abuses,” Pompeo said in a statement published Sunday, saying that “the United States is with you,” and will stand against Iran’s “tyranny.”

The statement said further, “We condemn the lethal force and severe communications restrictions used against demonstrators” and described the unrest as a “Cautionary tale of what happens when a ruling class abandons its people and embarks on a crusade for personal power and riches.”

Secretary Pompeo

@SecPompeo

The Iranian people will enjoy a better future when their government begins to respect basic human rights, abandons its revolutionary posture and its destabilizing activities in the region, and simply behaves like a normal nation. The choice is with the regime.

Embedded video

However, Iranian Foreign Minister Javad Zarif hit back, calling such solidarity hypocrisy, given it’s Washington’s crushing sanctions that are making life miserable for the common populace.

“The regime that imposes coercive economic actions and bars delivery of food and drugs to the elderly and patients, can never claim that it’s supporting the Iranian nation, Zarif said of the United States on Tuesday, as cited in Iran’s semi-official IRNA news agency.

END

Israel
Israel launches a wide scale strike on Damacus and kills 23 Iranians guarding an ammunition post. This attack is in reprisal for an Iranian launch of rockets into the Golan Heights.
(zerohedge)

“Wide-Scale” Israeli Strike On Damascus Kills 23 After Alleged Iranian Rocket Attack

During the night Tuesday Israel conducted a “wide-scale” strike on Syria, focused in and around Damascus, resulting in a soaring casualty count according to the AP.

“A Britain-based war monitoring group said the Israeli airstrikes killed 11 people, including seven non-Syrians who are most likely Iranians,” the AP initially reported, though Syrian state media cited two civilians killed among multiple wounded. That number was revised Wednesday morning to at least 23 people, most said to be “non-Syrians”  likely Iranians, according to reports.

The Israeli military said it had hit multiple targets belonging to Iran’s elite Quds force, specifically missile and weapons warehouses, after the Israeli Defense Forces (IDF) said rockets were fired at Israel by an Iranian force in Syria”.

 

Screengrab from video of Tuesday night’s massive airstrikes on Damascus. 

International reports have described the attacks as the most intense since a similar operation last January. Over the past months what were previously somewhat frequent Israeli raids inside Syria had grown quiet.

The Israeli military said its fighter jets hit multiple targets belonging to Iran’s elite Quds force, including surface-to-air missiles, weapons warehouses and military bases. After the Syrian military fired an air defense missile, the Israeli military said a number of Syrian aerial defense batteries were also destroyed.

Israel Defense Forces

@IDF

: We just carried out wide-scale strikes of Iranian Quds Force & Syrian Armed Forces targets in Syria in response to the rockets fired at Israel by an Iranian force in Syria last night.

Damascus residents are outraged after a direct hit on a civilian home Wednesday night, which included children among the wounded, as the AP reports:

Syria’s state SANA news agency said the two civilians were killed by shrapnel when an Israeli missile hit a house in the town of Saasaa, southwest of Damascus. It said several others were wounded, including a girl in a residential building in the suburb of Qudsaya, also west of the Syrian capital.

Syrian air defenses were active during the assault, with the Syrian Army saying it downed multiple inbound Israeli rockets.

Official media said Syrian anti-aircraft missiles were able to successfully “intercept and destroy most of the hostile missiles before reaching their targets.”

𝕋om 𝕆’ℂonnor

@ShaolinTom

Syria media reporting that air defenses were able to “intercept and destroy most of the hostile missiles before reaching their targets”— @alikhbariasy is showing images of alleged damage of strike to house in Qudsiyya neighborhood as well as some purported intercepts.

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

However, Israeli statements disputed this, with an Army statement saying up to “dozens” of targets were hit, including an Iranian base at Damascus International Airport.

“The attack was carried out in response to the launching of rockets by an Iranian force from Syria’s territory into Israel, intending to strike Israeli territory,” read the IDF statement, referring to a barrage of rockets launched toward Israel’s Golan on Tuesday.

 

“Yesterday’s Iranian attack towards Israel is further clear proof of the purpose of the Iranian entrenchment in Syria, which threatens Israeli security, regional stability and the Syrian regime,” Israeli spokesman Lt. Col. Jonathan Conricus said.

The statement added that Israel would “continue operating firmly and resolutely” against Iran in Syria, which shows that despite the war inside Syria slowly winding down and Assad in firm control over most of the country, the long-running “shadow war” with Israel is still escalating.

Babak Taghvaee@BabakTaghvaee

: In response to yesterday’s launch of rockets by proxies including at , Air Force carried-out a successful airstrike which targeted several & targets inside and near Mezzeh air base, minutes ago.

Embedded video

Meanwhile, Russia condemned the raid as “an unnecessary escalation of tensions” and as “very wrong” according to a Foreign Ministry statement.

“Recently, the intensity of Israeli rocket and bomb attacks on Syrian territory have increased sharply…This development evokes the most serious concern and opposition in Moscow. We consider it critically important to respect the sovereignty and territorial integrity of the Syrian Arab Republic and other states in the region,” the foreign ministry said.

end

6.Global Issues

Expect the full Japanization of the global economies

(Daniel Lacalle)

Lacalle: The Next Wave Of Debt Monetization Will Also Be A Disaster

Authored by Daniel Lacalle,

According to the IMF (International Monetary Fund) and the IIF (Institute of International finance) global debt has soared to a new record high. The level of government debt around the world has ballooned since the financial crisis, reaching levels never seen before during peacetime. This has happened in the middle of an unprecedented monetary experiment that injected more than $20 trillion in the economy and lowered interest rates to the lowest levels seen in decades. The balance sheet of the major central banks rose to levels never seen before, with the Bank Of Japan at 100% of the country’s GDP, the ECB at 40% and the Federal Reserve at 20%.

If this monetary experiment has proven anything it is that lower rates and higher liquidity are not tools to help deleverage, but to incentivize debt. Furthermore, this dangerous experiment has proven that a policy that was designed as a temporary measure due to exceptional circumstances has become the new norm. The so-called normalization process lasted only a few months in 2018, only to resume asset purchases and rate cuts.

 

Despite the largest fiscal and monetary stimulus in decades, global economic growth is weakening and leading economies’ productivity growth is close to zero. Money velocity, a measure of economic activity relative to money supply, worsens.

We have explained many times why this happens. Low rates and high liquidity are perverse incentives to maintain the crowding out of government from the private sector, they also perpetuate overcapacity due to endless refinancing of non-productive and obsolete sectors t lower rates, and the number of zombie companies -those that cannot pay their interest expenses with operating profits- rises.  We are witnessing in real-time the process of zombification of the economy and the largest transfer of wealth from savers and productive sectors to the indebted and unproductive.

However, as monetary history has always shown, when central planners face the evidence of low growth, poor productivity and higher debt, their decision is never to stop the monetary madness, but to accelerate it. That is why the message that  the ECB (European Central Bank) and the IMF are trying to convey is that there is a savings glut and that the reason why negative rates are not working as expected is that economic agents do not believe rates will stay low for longer, so they hold on to investment and consumption decisions. Complete nonsense. With the household, corporate and government debt at still elevated levels and close to pre-crisis highs, the notion of excess savings is ludicrous. What informs such a misinformed opinion? The often-repeated “there is no inflation” fallacy. If money supply is high and rates are low but inflation does not creep up, then surely there must be a savings glut.  False. There is massive inflation in financial assets and housing but there is also a very clear rise in inflation in non-replicable goods and services versus replicable ones, which means that the official consumer price indices (CPI) misrepresent the true cost of living increase. That is the reason why there are demonstrations all over the eurozone against the rising cost of living at the same time as the ECB repeats that there is no inflation.

When central planners blame economic agents for a non-existent savings glut and repeat that there is no inflation when there clearly is a lot,  they also tend to add a conclusion: if households and corporates are unwilling to spend or invest, then the government must do it.  This is, again, a false premise. Households and corporates are spending and investing. There is no evidence of a lack of capital expenditure, let alone solvent credit demand. The private sector is simply not investing and spending as much as governments would want them to, among other reasons because the private sector does suffer the consequences of taking a higher risk when the evidence of debt saturation is clear to all those who risk their capital.

Unfortunately, the next wave of central bank action will be the full monetization of government excess. The excuse will be the so-called “climate emergency” and “green deals”. Yet governments do not have better or more information about the best course of action in the energy transition, and by artificially picking winners and losers, ignoring the positive forces of competition and creative destruction to deliver faster innovation and progress, governments tend to delay, not accelerate change.

In any case, it will happen. The ECB, always happy to repeat the mistakes of Japan with an even stronger impetus, is likely to start new programs of debt monetization for green projects and claim it is a different, radical and new measure… as if it was not doing so already with the Juncker and Green Energy Directives.

 

The result is easy to predict, unfortunately. Governments hate two things that disruptive technologies do: reduce consumer prices and generate lower tax revenues. Yes, disruptive technologies are, by definition, disinflationary both in CPI and in tax receipts. Furthermore, disruptive technologies also demolish government control of the economy. These three reasons, lower inflation, lower tax revenues, and less control, are the reasons why governments will never adopt true changes in the economic growth pattern. And because of these reasons, the massive spending financed with new money creation is likely to be even worse for economic growth. Not only it is likely to be an even bigger crowding-out of the private sector, but make economies less dynamic, less productive and more indebted.

There are ways to incentivize change and a green revolution. It is called competition and creative destruction. None of those are favored by governments, not because they are evil, but because governments have the incentive to maintain the obsolete sectors via subsidies.

If the previous $20 trillion stimuli have delivered more debt, less growth, and rising discontent among the middle class that always pays for government experiments, the next one will likely be the last step towards full Japanization. If anything, what are already prudent spending and investment decisions from the private sector are likely to be even more conservative, and the resulting negative productivity growth will mean lower salaries and employment but higher debt and a larger size of government in the economy… Which is, in reality,  the ultimate goal of these massive plans.

The reader may think that this time is different but it is not, because the incentives are the same. What I am completely sure is that, once it fails as well, many will demand even more stimuli to solve the problem.

END

SWEDEN/SWEDBANK/ESTONIA

Sweden’s Swedbank has now been caught laundering a huge 860 million of Russian organized crime money

(zerohedge)

 

Bombshell Report Alleges Russian Oligarch Laundered $860 Million Via Swedbank

The money-laundering scandal sweeping across the Scandinavian banking system reached another milestone on Wednesday. The Organized Crime and Corruption Reporting Project, an organization that helped break the story, has dropped another bombshell report about Sweden’s Swedbank.

The report describes how one Russian oligarch and ex-government minister managed to hide his wealth via a network of 70 shell companies situated all over the world. The companies had one thing in common: They all had accounts with Swedbank’s Estonian branch.

The oligarch in question was former energy magnate Mikhail Abyzov, who was accused of being part of Russian organized crime a few years back, and allegedly used his network of shell companies to shuffle millions of dollars stolen from business partnerships and other businesses safely to Europe.

The report goes on to accuse Swedbank of tacitly aiding Abyzov via mysterious insider employees within the bank who seemed to help his companies avoid the bank’s due diligence. Over the years, roughly $860 million flowed into these accounts, and only $770 million flowed out.

Since the questionable transactions involved dollars, it’s possible that the Treasury could decide to investigate after reading the OCCRP report. That could create problems for Swedbank.

But the bank said on Wednesday that it was not aware of any violations of US sanctions on Russia, like the above-mentioned report alleged, and said that it would continue to investigate accusations of money laundering made by these reporters.

In a statement, the bank said it is unaware of any violations.

“The Bank is not aware of any OFAC (Office of Foreign Asset Control) violations arising out of the continuing internal investigation,” Swedbank said in a statement.

 

The bank did, however, leave open the possibility that an employee acting as an insider could have done something wrong.

“How individual employees have acted in different situations is also part of the ongoing internal investigation,” Swedbank said. “If there has been unethical behavior as described in Uppdrag Granskning, we should of course get to the bottom of it.”

“It is a good thing that the bank is being investigated and I welcome Uppdrag Granskning’s reporting,” CEO Jens Henriksson added.

The bank’s internal investigation, which has been ongoing for some time now, is expected to wrap early next year.

END

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1219 DOWN .0008 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 /MIXED

 

 

USA/JAPAN YEN 107.85 DOWN 0.074 (Abe’s new negative interest rate (NIRP), a total DISASTER/NOW TARGETS INTEREST RATE AT .11% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL…

GBP/USA 1.2485   DOWN   0.0052  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3059 UP .0005 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  WEDNESDAY morning in Europe, the Euro FELL BY 8 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1219 Last night Shanghai COMPOSITE CLOSED DOWN 22.94 POINTS OR 0.78% 

 

//Hang Sang CLOSED DOWN 204.19 POINTS OR 0.75%

/AUSTRALIA CLOSED DOWN 1.24%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 204.19 POINTS OR 0.75%

 

 

/SHANGHAI CLOSED DOWN 22.94 POINTS OR 0.78%

 

Australia BOURSE CLOSED DOWN  1.24% 

 

 

Nikkei (Japan) CLOSED DOWN 144.08  POINTS OR 0.62%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1473.40

silver:$17.10-

Early WEDNESDAY morning USA 10 year bond yield: 1.74% !!! DOWN 4 IN POINTS from FRIDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.21 DOWN 4  IN BASIS POINTS from TUESDAY night.

USA dollar index early WEDNESDAY morning: 98.02 UP 17 CENT(S) from  TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.39% UP 1 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.11%  DOWN 3  BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.43%//DOWN 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,20 DOWN 5 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 77 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.35% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.55% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR WEDNESDAY

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

Euro/USA 1.1062  DOWN     .0015 or 15 basis points

USA/Japan: 108.69 UP .217 OR YEN DOWN 21  basis points/

Great Britain/USA 1.2916 DOWN .0012 POUND DOWN 12  BASIS POINTS)

Canadian dollar DOWN 43 basis points to 1.3314

 

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The USA/Yuan,CNY: AT 7.0389    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0389  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.7074 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.11%

 

Your closing 10 yr US bond yield DOWN 3 IN basis points from TUESDAY at 1.76 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.22 DOWN 3 in basis points on the day

Your closing USA dollar index, 97.97 UP 12  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 61.31  0.84%

German Dax :  CLOSED DOWN 62.98 POINTS OR .48%

 

Paris Cac CLOSED DOWN 15.02 POINTS 0.25%

Spain IBEX CLOSED DOWN 33.80 POINTS or 0.37%

Italian MIB: CLOSED UP 22.57 POINTS OR 0.10%

 

 

 

 

 

WTI Oil price; 56.95 12:00  PM  EST

Brent Oil: 62.47 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    63.88  THE CROSS HIGHER BY 0.02 RUBLES/DOLLAR (RUBLE LOWER BY 2 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.35 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 :  57.11//

 

 

BRENT :  62.46

USA 10 YR BOND YIELD: … 1.74…DOWN 4 BASIS PTS…

 

 

 

USA 30 YR BOND YIELD: 2.21.DOWN 4 BASIS PTS…

 

 

 

 

 

EURO/USA 1.10721 ( DOWN 6   BASIS POINTS)

USA/JAPANESE YEN:108.63 UP .152 (YEN DOWN 15 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.92 UP 6 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.919 DOWN 8  POINTS

 

the Turkish lira close: 5.7004

 

 

the Russian rouble 63.85   UP 0.02 Roubles against the uSA dollar.( UP 2 BASIS POINTS)

Canadian dollar:  1.3305 DOWN 33 BASIS pts

USA/CHINESE YUAN (CNY) :  7.0390  (ONSHORE)/

 

USA/CHINESE YUAN(CNH): 7.0392 (OFFSHORE)

 

German 10 yr bond yield at 5 pm: ,-0.35%

 

The Dow closed DOWN 112.93 POINTS OR 0.40%

 

NASDAQ closed DOWN 43.92 POINTS OR 0.51%

 


VOLATILITY INDEX:  12.78 CLOSED DOWN .08

LIBOR 3 MONTH DURATION: 1.894%//libor dropping like a stone

 

USA trading today in Graph Form

Stocks & Bond Yields Tumble As China Trade Deal Hope Fades

The so-called “resilience” of US equities overnight as they shrugged off the Washington Democracy Bill vote and the China retaliation threat is more a signal of ignorance (or total complacency) as every negative trade headline was met with a sudden wall of bids to try and get back to even…

As US sources told Reuters that the deal may be delayed, the market began to drop the odds of a trade deal (albeit modestly)

Source: Bloomberg

This was just a fleshwound though for the algos who know only buying matters now…

Chinese stocks faded overnight (as they should rationally)…

Source: Bloomberg

European stocks started ugly but were bid all day…

Source: Bloomberg

US equities were all lower on the day (Trannies worst) but note the two BTFD efforts…

The Dow is down two days in a row, and less than 1%, but that is still the biggest such drop in 6 weeks!!

Source: Bloomberg

The S&P hasn’t had a 1% days in 28 days (it went 36 days in June/July)…

Source: Bloomberg

The VIX term structure continues to steepen dramatically…

Source: Bloomberg

Momo has erased almost all the month’s losses (as bond yields have tumbled)…

Source: Bloomberg

Treasury yields were all lower once again today with the long-end notably outperforming…

Source: Bloomberg

With 10Y back below the key 1.75% level…

Source: Bloomberg

The yield continues to flatten dramatically back towards inversion…

Source: Bloomberg

The dollar rallied for the 2nd day in a row…

Source: Bloomberg

Offshore Yuan fell to three-week lows…

Source: Bloomberg

Cryptos ambled modestly lower today…

Source: Bloomberg

Bitcoin was choppy intraday but ended marginally lower…

Source: Bloomberg

Gold, Silver, and Copper were relatively flat today but oil prices surged (despite the odds of a trade deal fading and a build in crude stocks)….

Source: Bloomberg

But the rebound was purely technical in nature…

 

And finally, whatever you do, don’t worry about there being a recession anytime soon, the ‘experts’ know better…

And this was notable, Warren has collapsed in the betting to equal Biden as Buttigieg is surging…

Source: Bloomberg

Who’s right – the FX markets or the equity markets?

Source: Bloomberg

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

Stocks, Yuan Tumble On Reports That ‘Phase One’ Trade-Deal Delayed

A Saturday call between Mnuchin, Lighthizer and China’s Vice Premier Liu He was described as “constructive” by Chinese state media Xinhua, but that all changed this week.

This should come as a surprise to absolutely no one (especially after last night’s vote on the Democracy Bill), but Reuters is reporting that ‘Phase One’ US/China trade deal may not be completed this year, citing trade experts and people close to the White House.

Additionally, Reuters reports that Trump and US Trade Representative Robert Lighthizer recognize that rolling back tariffs for a deal that fails to address core intellectual property and technology transfer issues will not be seen as a good deal for the U.S., a person briefed on the matter said.

 

US equity markets are tumbling…

As the odds of a trade deal are plunging

Source: Bloomberg

And Yuan is back at its weakest since October…

Source: Bloomberg

Additionally, as Rabobank noted yesterday, if Trump gets wind of the fact that China is ignoring him, or even has the perception Beijing is working against him politically, it must surely raise the risk of higher US tariffs–at least on 15 December–rather than the risk-on imminent decrease so many have said so loudly for oh-so long.

This is not aging well…

Of course, we know what happens next…

zerohedge@zerohedge

Fed won’t cut again until Trump tweets that trade talks have collapsed

Hey @realDonaldTrump you know what to do

And sure enough the market is starting to price in a more dovish Fed…

ii)Market data/USA

iii) Important USA Economic Stories

USA 4th quarter GDP his heading for zero growth

(Jeff Cox/CNBC)

Economic growth is close to zero for the fourth quarter, according to Fed gauges

  • GDP growth is barely positive in the fourth quarter, according to two Federal Reserve measures.
  • The Atlanta Fed’s tracker is at 0.3%, while the New York Fed’s is showing 0.4%.

The U.S. economy will barely grow at all in the fourth quarter, if two Federal Reserve gauges that track gross domestic product are correct.

With some recent data coming in below expectations, both the Atlanta and New York Fed’s trackers have lowered their expectations for the last three months of 2019.

According to the Atlanta Fed’s GDPNow, growth is likely to come in at just 0.3%. The New York Fed’s GDP Nowcast is showing a gain of 0.4%.

Both projections have come on the heels of recent news that took down previously meager expectations to just above negative territory. Friday releases indicating lackluster retail sales and production growth took the Atlanta tracker down from 1% a week ago and the New York measure from 0.7% earlier this week and as high as 2% back in September.

Economic data has largely remained a bit better than expectations but has dipped lately compared with Wall Street estimates. The Citi Economic Surprise Index, which compares actual readings to consensus estimates, is still positive but at its lowest level since early September

My goodness, this is awful: PG and E rolling blackouts hit 181,000 customers
(zerohedge)

“It’s Not Sustainable:” PG&E Rolling Blackouts To Hit 181,000 Customers Wednesday 

Seriously, every time the wind blows in California, it transforms into a third world country with rolling blackouts. And if you’ve ever been to let’s say South America where this happens frequently, it’s not a pleasant thing to experience.

So Californians will get another taste of what it’s like to live in Venezuela or Argentina on Wednesday. Nearly 181,00 customers in Northern California on early Wednesday will see their power cutoff so that Pacific Gas and Electric Company (PG&E) can avoid sparking another deadly wildfire.

The National Weather Service (NWS) posted “red flag warnings” for parts of the Bay Area, Sacramento, Paradise, and even up to Redding.

Northerly winds are expected to be in the 40-55 mph range, with some gusts over 55 mph, which could damage electric lines and spark wildfires, one of the main reasons why PG&E wants to cut power.

PG&E published a community resource map of certain facilities that residents can use for WiFi, bathrooms, and food during the rolling blackout.

PG&E has conducted several rolling blackouts since Sept., which at one point left millions of residents in the dark for days while the electric company shutdown large transmission lines to avoid electrical fires during a windstorm.

 

The bankrupted utility company has been extra careful about preventing blazes during windstorms since deadly fires in Northern California in 2017 and 2018 are expected to cost $30 billion.

“We all know it’s not sustainable — it’s not where we want to be,” Andy Vesey, PG&E’s chief of utility operations, said Tuesday. But at this point in time, it’s the situation that we are faced with.”

FOMC minutes signals the Fed is on hold
(zerohedge)

FOMC Minutes Signal Fed On Hold Despite “Elevated Downside Risks”

Since The Fed cut rates on Oct 30th, Gold is the laggard (there’s no more risk) as stocks have soared (trade deal hope) with the dollar and bonds practically unchanged…

The 30Y Yield is well below (and the yield curve is notably flatter) pre-FOMC levels…

Source: Bloomberg

And, rather notably, despite endless FedSpeak jawboning the fact that The Fed is on hold (and data-dependent) now; given today’s move on trade-deal headlines, the market is now more dovish than it was right after The Fed cut in October…

Source: Bloomberg

And of course, while The Fed claims to have got the repo-calypse under control, it remains forced to puke ~$70 billion every day (not cumulative) to plug whatever hole there is…

All of which makes today’s Minutes rather stale as it will be focused on the “end of the mid-cycle adjustment” just as the “mid-cycle” is set to collapse again as trade-deal hopes evaporate. Still, the minutes may provide some insight into what could prompt the Fed to move again on rates, be it higher or lower.

As a reminder, at the last meeting, The Fed cut rates by 25bps, as was anticipated. Hawkish dissent came from George and Rosengren again, although Bullard did not repeat his call for a deeper rate cut. The statement saw the Fed tweak its language on future rate moves, now stating it will “continue to monitor the implications of incoming information for the economic outlook as it assesses the appropriate path of the target range for the federal funds rate,” (from “will continue to monitor the implications of incoming information for the economic outlook and will act as appropriate to sustain the expansion” – a line that the market had taken to meet that the door to further cuts was open); the tweak was subtle, which analysts said gives the Fed optionality on future moves. Additionally, much of the language on the economy was left unchanged

So what did they say?

Here are the Key Takeaways from the FOMC minutes (via Bloomberg):

  • While most Fed officials saw rates as “well calibrated” and likely on hold barring a “material reassessment” of the outlook, policy makers stressed the downside risks in justifying a third straight rate cut at the October meeting. Many also cited low inflation or price expectations.
  • The minutes illustrate a split on FOMC, as a “couple” of participants who backed a cut saw it as a “close call,” while “some” favored no change.
  • Policy makers generally expected consumer spending to “remain on a firm footing” and labor demand appeared strong, though trade uncertainty and sluggish global growth would continue to weigh on businesses.
  • Fed officials discussed additional options to control the benchmark interest rate following the start of large-scale repo operations and Treasury-bill purchases. Many policy makers saw a standing repo facility as a potentially “useful backstop,” though with ample reserves, “there might be little need” for such a facility or for frequent repo operations.
  • The FOMC held a discussion on the value of various nontraditional tools for easing when interest rates are near zero. The minutes indicated general support for forward guidance and large-scale asset purchases. On the other hand, there was skepticism about capping long-term rates, and “all participants” saw negative rates as unattractive, though officials wouldn’t completely rule out the option.

Some more key observations:

Fed Cut Rates as Insurance Against Global Slowdown, Low Inflation

In discussing the reasons for such a decision, these participants continued to point to global developments weighing on the economic outlook, the need to provide insurance against potential downside risks to the economic outlook, and the importance of returning inflation to the Committee’s symmetric 2 percent objective on a sustained basis.

It was a “close call”…

A couple of participants who were supportive of a rate cut at this meeting indicated that the decision to reduce the federal funds rate by 25 basis points was a close call relative to the option of leaving the federal funds rate unchanged at this meeting.

… but necessary, largely to offset global weakness:

Many participants judged that an additional modest easing at this meeting was appropriate in light of persistent weakness in global growth and elevated uncertainty regarding trade developments. Nonetheless, these participants noted that incoming data had continued to suggest that the economy had proven resilient in the face of continued headwinds from global developments and that previous adjustments to monetary policy would continue to help sustain economic growth

That said, looking ahead the Fed is now data-dependent as monetary policy now is “well-calibrated”:

With regard to monetary policy beyond this meeting, most participants judged that the stance of policy, after a 25 basis point reduction at this meeting, would be well calibrated to support the outlook of moderate growth, a strong labor market, and inflation near the Committee’s symmetric 2 percent objective and likely would remain so as long as incoming information about the economy did not result in a material reassessment of the economic outlook.

A couple of participants said not to expect more rate cuts:

A couple of participants expressed the view that the Committee should reinforce its post-meeting statement with additional communications indicating that another reduction in the federal funds rate was unlikely in the near term unless incoming information was consistent with a significant slowdown in the pace of economic activity.

Meanwhile in the US manufacturing was decidedly weaker than services:

Participants discussed developments in the manufacturing, energy, and agricultural sectors of the U.S. economy. Manufacturing production remained weak, and continuing concerns about global growth and trade uncertainty suggested that conditions were unlikely to improve materially over the near term.

There was some concern about jobs too:

… the labor strike at General Motors had disrupted motor vehicle output, and ongoing issues at Boeing were slowing manufacturing in the commercial aircraft industry. A couple of participants noted that activity was particularly weak for the energy industry, in part because of low petroleum prices. In addition, a few participants noted ongoing challenges in the agricultural sector, including those associated with lower crop yields, tariffs, weak export demand, and difficult financial positions for many farmers. One bright spot for the agricultural sector was that some commodity prices had firmed recently

As pertains to the one of the most controversial topics, whether to have negative rates in the US, the Fed for now disagrees:

All participants judged that negative interest rates currently did not appear to be an attractive monetary policy tool in the United States….  Participants noted that negative interest rates would entail risks of introducing significant complexity or distortions to the financial system.

… although if “circumstances” arise, the Fed will change its mind:

participants did not rule out the possibility that  circumstances could arise in which it might be appropriate to reassess the potential role of negative interest rates as a policy tool.”

Circumstances such as a 20% drop in the S&P:

Finally, on the topic of QE4, pardon, NOT QE: “All participants expressed support for a plan to purchase Treasury bills into the second quarter of 2020.” or beyond:

Many participants supported conducting operations to maintain reserve balances around the level that prevailed in early September. Some others suggested moving to an even higher level of reserves to provide an extra buffer and greater assurance of control over the federal funds rate.

The FOMC discussed how fast to buy T-Bills:

 

In discussing the pace of Treasury bill purchases, many participants supported a relatively rapid pace to boost reserve levels quickly, while others supported a more moderate pace of purchases.

A “few” participants indicated that NOT QE may expand into full blown QE:

A few participants indicated that purchasing Treasury notes and bonds with limited remaining maturities could also be considered as a way to boost reserves, particularly if the Federal Reserve faced constraints on the pace at which it could purchase Treasury bills.

And the punchline: the Fed rushed out the early NOT QE announcement despite a “couple” of participants warning it would be seen as a “dire situation requiring immediate action:”

Most participants preferred not to wait until the October 29–30 FOMC meeting to issue a public statement regarding the planned Treasury bill purchases and repo operations. They noted that releasing a statement before the October 29–30 FOMC meeting would help reinforce the point that these actions were technical and not intended to affect the stance of policy.

A couple of participants, however, wanted to wait until the October 29–30 FOMC meeting to announce the plan so as not to surprise market participants or lead them to infer that the Committee regarded the situation as dire and thus requiring immediate action.

“Dire situation”, check. And the Fed was even nice enough to let us know when the next repo market crisis will strike:

In particular, financial institutions’ internal risk limits and balance sheet costs may have slowed the distribution of liquidity across the system at a time when reserves had dropped sharply and Treasury issuance was elevated. Although money market conditions had since improved, market participants expressed uncertainty about how funding market conditions may evolve over coming months, especially around year-end. Further  out, the April 2020 tax season, with associated reductions in reserves around that time, was viewed as another point at which money market pressures could emerge.

Looking at the statement from the perspective of a couple, some, several, many, most:

  • COUPLE OF FED OFFICIALS WHO BACKED CUT SAW IT AS CLOSE CALL
  • SOME OFFICIALS FAVORED NO CHANGE IN OCT WITH BASELINE FAVORABLE
  • SEVERAL CONCERNED INFLATION EXPECTATIONS COULD FALL FURTHER
  • MANY FED OFFICIALS VIEWED DOWNSIDE RISKS AS ELEVATED
  • MANY FED OFFICIALS SAW STANDING REPO AS POTENTIALLY USEFUL
  • MOST FED OFFICIALS SAW RATES AS WELL CALIBRATED AFTER OCT. CUT
  • MOST SAW RATES APPROPRIATE AFTER CUT UNLESS A MATERIAL CHANGE

In summary, the minutes don’t change what the market knows from listening to Powell and various other Fed speakers recently, which explains a lack of reaction in bonds, stocks, the dollar, or Fed Funds.

*  *  *

Full Minutes below:

end

Fed Reveals When The Next Repo Crisis May Strike

As part of today’s FOMC Minutes, the Fed also released the minutes from the October 4 ad hoc unscheduled video conference during which the FOMC agreed to unexpectedly launch POMO, reversing almost two years of QT, in order to address the crisis in the repo market by boosting the Fed’s balance sheet permanently and restoring the level of Fed reserves to their “early September level.”

What it revealed was interesting.

First, the minutes disclosed what the FOMC believes prompted the spike in repo rates in mid-September, noting that “the staff reviewed recent developments in money markets and the effect of the Desk’s continued offering of overnight and term repo operations.” Then, according to staff analysis and market commentary, it concluded that “many factors contributed to the  funding stresses that  emerged in mid-September. In particular, financial institutions’ internal risk limits and balance sheet costs may have slowed the distribution of liquidity across the system at a time when reserves had dropped sharply and Treasury issuance was elevated.”

In other words, what happened in September, when the overnight G/C repo rate exploded to 10% is that it was a little bit of everything. It also means that it was nobody’s fault because it was, by definition, everyone’s fault.

 

In any case, after agreeing that that preserving “control over the federal funds rate was a priority and that recent money market developments suggested it was appropriate to consider steps at this time to maintain a level of reserves” participants “expressed support for a plan to purchase Treasury bills into the second quarter of 2020 and to
continue conducting overnight and term repo operations at least through January of next year.”

Specifically, and as noted previously, the FOMC supported conducting operations “to maintain reserve balances around the level that prevailed in early September” while others were even more aggressive and “suggested moving to an even higher level of reserves to provide an extra buffer and greater assurance of control over the federal funds rate.”

There was another interesting discussion topic: how quickly should the Fed’s balance sheet rise:

In discussing the pace of Treasury bill purchases, many participants supported a relatively rapid pace to boost reserve levels quickly, while others supported a more moderate pace of purchases. Participants generally judged that Treasury bill purchases and the associated increase in reserves would, over time, result in a gradual reduction in the need for repo operations.

We now know that the pace of purchases is $60 billion and together with the Fed’s various repo operations, the Fed’s balance sheet has increased by $285 billion in the past 8 weeks, the fastest expansion on record, surpassing QE1, QE2 and QE3. Just remember: it’s not QE!

 

A notable discussion took place over whether the Fed could stop pretending that it is not engaging in QE – just because it is merely monetizing T-Bills – and could expand to coupons:

A few participants indicated that purchasing Treasury notes and bonds with limited remaining maturities could also be considered as a way to boost reserves, particularly if the Federal Reserve faced constraints on the pace at which it could purchase Treasury bills.

One month ago, we said that it is only a matter of time before the Fed start monetizing 2 Year Notes, and we are happy to see that this has already been discussed by the Fed.

Another interesting point had to do with the seemingly panicked rush by the Fed to launch POMO. After all, recall that even Goldman expected the rollout of bond purchases to take place in November, after the October 31 meeting. Well, it appears that at least a “couple” of FOMC members were just as concerned by what message such a rushed rollout would send:

Most participants preferred not to wait until the October 29–30 FOMC meeting to issue a public statement regarding the planned Treasury bill purchases and repo operations. They noted that releasing a statement before the October 29–30 FOMC meeting would help reinforce the point that these actions were technical and not intended to affect the stance of policy. In addition, a few participants remarked that an earlier release would allow the Desk to begin boosting the level of reserves sooner.

A couple of participants, however, wanted to wait until the October 29–30 FOMC meeting to announce the plan so as not to surprise market participants or lead them to infer that the Committee regarded the situation as dire and thus requiring immediate action.

 

“Dire” and “requiring immediate action.” Got it.

Finally, as most money-market and Fed watchers expect the next repo crisis to take place around year end, the FOMC did not disagree but also noted that “money market pressures” could erupt in April 2020, around tax season:

Although money market conditions had since improved, market participants expressed uncertainty about how funding market conditions may evolve over coming months, especially around year-end. Further out, the April 2020 tax season, with  associated reductions in reserves around that time, was viewed as another point at which money market pressures could emerge.

One last point: the FOMC did mention that a Standing Repo Facility – i.e., unlimited QE for anyone and everyone who requests it – remains very much in the works:

Participants discussed longer-term issues that the Committee might want to study once the near-term plan was in place. In particular, many participants mentioned that the Committee may want to continue its previous discussion of a standing repo  facility as a part of the long-run implementation framework. Almost all of these participants noted that such a facility was an  option to provide a backstop to buffer shocks that could adversely affect policy implementation, and several of these  participants mentioned the potential for the facility to support banks’ liquidity risk management while reducing the demand for reserves.

Other participants, instead, highlighted that policy implementation had worked well with larger quantities of reserves and focused their discussion on actions to firmly establish an ample supply of reserves over the longer run.

In any case, a decision on a SRF will only be made in the future, as “a number of participants noted that a discussion of a broader range of factors that affect the level and volatility of reserves may be appropriate at a future meeting.”

end

iv) Swamp commentaries)

The Ukrainian prosecutor is now claiming that the Obama-Bidens were involved in laundering 7.4 billion dollars of money and the Biden group’s take was 16.5 million

(zerohedge)

Ukrainian Indictment Claims $7.4 Billion Obama-Linked Laundering, Puts Biden Group Take At $16.5 Million

An indictment drawn up by Ukraine’s Office of the Prosecutor General against Burisma owner Nikolai Zlochevsky claims that Hunter Biden and his partners received $16.5 million for their ‘services’ – according to Ukrainian MP Alexander Dubinsky of the ruling Servant of the People Party.

Dubinsky made the claim in a Wednesday press conference, citing materials from an investigation into Zlochevsky and Burisma.

“Zlochevsky was charged with this new accusation by the Office of the Prosecutor General but the press ignored it,” said the MP. “It was issued on November 14.”

The son of Vice-President Joe Biden was receiving payment for his services, with money raised through criminal means and money laundering,” he then said, adding “Biden received money that did not come from the company’s successful operation but rather from money stolen from citizens.”

According to Dubinsky, Hunter Biden’s income from Burisma is a “link that reveals how money is siphoned [from Ukraine],” and how Biden is just one link in the chain of Zlochevsky’s money laundering operation which included politicians from the previous Yanukovich administration who continued their schemes under his successor, President Pyotr Poroshenko.

“We will reveal the information about the financial pyramid scheme that was created in Ukraine and developed by everyone beginning with Yanukovich and later by Poroshenko. This system is still working under the guidance of the current managerial board of the National Bank, ensuring that money flows in the interest of people who stole millions of dollars, took it offshore and bought Ukrainian public bonds turning them into the Ukrainian sovereign debt,” said Dubinsky, adding that “in both cases of Yanukovich and Poroshenko, Ms. Gontareva and companies she controls were investing the stolen funds.”

Franklin Templeton named

According to Interfax-Ukraine, MP Andriy Derkach announced at the same press conference that deputies have received new materials from investigative journalists alleging that the ‘family’ of ex-President Yanukovych funneled $7.4 billion through American investment firm Franklin Templeton Investments, which they claim have connections to the US Democratic party.

“Last week, November 14, the Prosecutor General’s Office (PGO), unnoticed by the media, announced a new suspicion to the notorious owner of Burisma, ex-Ecology Minister Zlochevsky. According to the suspicion, the Yanukovych family is suspected, in particular, with legalizing (laundering) of criminally obtained income through Franklin Templeton Investments, an investment fund carrying out purchases of external government loan bonds totaling $7.4 billion,” said Derkach, adding that the money was criminally obtained and invested in the purchase of Ukrainian debt in 2013 – 2014.

The son of Templeton’s founder, John Templeton Jr., was one of President Obama’s major campaign donors. Another fund-related character is Thomas Donilon. Managing Director of BlackRock Investment Institute, shareholder Franklin Templeton Investments, which has the largest share in the fund. It is noteworthy that he previously was Obama’s national security advisor,” Derkach added.

Derkach then demanded “President Zelensky must pick up the phone, dial Trump, ask for help and cooperation in the fight against corruption and fly to Washington. The issue of combating international corruption in Ukraine with the participation of citizens, businessmen and U.S. officials should become a key during the meeting of the two presidents.”

end

Should be interesting:  the FBI wants to talk with the Trump Ukraine whistleblower Eric Ciaramella

(zerohedge)

FBI Wants To Speak With Trump-Ukraine CIA Whistleblower

The FBI has reached out to an attorney for the Trump-Ukraine whistleblower reported to be CIA analyst Eric Ciaramella, who filed a complaint over President Trump’s July 25 phone call with his Ukrainian counterpart, Volodomyr Zelensky, according to Yahoo! News.

The move came after a vigorous internal debate at the agency over how to proceed with an investigation of allegations contained in the complaint, according to sources familiar with the matter.

According to the report, an FBI agent from the Washington field office reached out to whistleblower attorney Mark Zaid (The
Coup has started‘ guy who loves going to Disneyland alone), who declined comment for the article)

 

An interview with the whistleblower has yet to be scheduled.

 

The request from the FBI comes at a sensitive moment when Republicans on the House Intelligence Committee are making repeated efforts to “out” the whistleblower in order to suggest he may have had political motivations hostile to the president when he filed his Aug. 12 complaint with the intelligence community’s inspector general.

It also comes after multiple threats have been made against the whistleblower and his lawyers — some of which have been separately passed along by the lawyers to other officials at the FBI. But the agent who sought to question the whistleblower made no reference to the threats as the purpose of the interview, according to sources familiar with the discussions. –Yahoo! News

Yahoo suggests that an FBI interview will “introduce a new wild card into the debate over whether to impeach the president over his Ukraine dealings.”

end

More trials and tribulations for our good friend Hunter Biden

(zerohedge0

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

NSC Officials Attempted to Remove Leaker Vindman but Were Blocked by Obama Deep State HR Head in White House Letitia Lewis   https://www.thegatewaypundit.com/2019/11/breaking-nsc-officials-atttempted-to-remove-leaker-vindman-but-were-blocked-by-obama-deep-state-hr-head-in-white-house-letitia-lewis/

 

The impeachment hearings on Tuesday were a disaster for Schiff, Dems and MSM.

 

Time’s @aabramson early last evening: Schiff seems to be getting angry right now. He’s remained very calm throughout the hearings (as was expected) but can detect the slightest hint of annoyance now.

ABC’s @ajdukakis: Just now: Caught @RepAdamSchiff walking out of the Capitol after a long day of  public ImpeachmentInquiry hearings w/2 double-witness panels. Asked how he felt today’s round of hrgs went, Chmn. Schiff told me, “Yah know, I’m too exhausted to comment,” then exited the building.”

 

@TrumpWarRoom: Jennifer Williams listened to President Trump’s July 25 phone call with the president of Ukraine, but didn’t flag anything noteworthy about it until AFTER the president released the transcript on September 25, two months later.

Lt. General Keith Kellogg, National Security Advisor to Vice President Mike Pence: “I was on the much-reported July 25 call between President Donald Trump and President Zelensky… I heard nothing wrong or improper on the call. I had and have no concerns.  Ms. Williams was on the call… she never reported any personal or professional concerns to me, her direct supervisor, regarding the call… or to any other member of the Vice President’s staff, including our Chief of Staff or the Vice President…”

https://twitter.com/W7VOA/status/1196906260265930752?s=09

 

Jennifer Williams said she was unaware of any concerns about Hunter Biden on board of Burisma until after George Kent testimony.

 

@paulsperry_: LOL, the WaPo imperiously reports that President Trump used an “unauthorized diplomatic channel.” Earth to Post: POTUS is the one who authorizes diplomatic channels

 

@seanmdav: That hearing with Vindman, who is clearly the intelligence community’s Patient Zero in the latest iteration of Democrats’ anti-Trump coup theater, could not have gone more poorly for Democrats.

His testimony was a disaster for impeachment efforts.

    In his prepared statement provided to Congress, Vindman claimed to be the top adviser to the President of the United States on Ukraine policy. He was later forced to admit he’s never met Trump, never spoke to Trump, and has never advised him on anything.

    WENSTRUP: You said you respect the chain of command. Did you go to your direct boss, Tim Morrison?  VINDMAN: No, I didn’t.

    WENSTRUP: Did you ask that the word “demand” be included in the July 25 call transcript? VINDMAN: No.  WENSTRUP: And yet you claimed in your opening statement here today that there was a “demand” from Trump in that call.

   Nunes: Did you discuss the July 25 call or July 26 call with anyone outside the White House? Vindman: Yes. George Kent, and someone I’m not going to name who works in the intelligence community.

Schiff just told Vindman not to answer the question.

    JORDAN: Why didn’t you go directly to your superior with your concerns? VINDMAN: It was a really busy week. Also the lawyer told me not to talk to anyone else. JORDAN: And yet you talked to your brother, to George Kent, and a CIA person you won’t name.

    STEWART: You directed Rep. Nunes to refer to you as “Lieutenant Colonel?” Do you always insist on civilians referring to you by your military rank? VINDMAN: People on Twitter were disrespecting me and my service.

    Vindman just testified that… he has no idea that Burisma paid Hunter Biden millions of dollars over 5 years to sit on the gas company’s board.  He claims to be an expert on Ukraine policy

    Vindman Was Asked Three Times To Be Defense Minister of Ukraine [WHY?]

https://thefederalist.com/2019/11/19/vindman-was-asked-three-times-to-be-defense-minister-of-ukraine/

      What was Alexander Vindman doing that led the Ukrainians to believe he was qualified or interested in serving as the Minister of Defense for a foreign nation?

Vindman just admitted to going behind the president’s back, before Trump spoke with Zelensky, to instruct Zelensky on what policies he should pursue and what his posture should be toward the U.S.

He already admitted in previous testimony that he told Ukraine to ignore Trump.

TheLastRefuge2: Vindman is dead in the water, he just perjured himself by saying he doesn’t know the identity of the whistleblower

 

Fox: Vindman says he spoke with intel official about Trump-Ukraine call, raising questions of possible whistleblower contact [Yet Vindman testified that he doesn’t know the identity of the WB.]

GOP Rep @leezeldin: LTC Vindman stated that the President did not stick to his [Vindman’s] talking points on the July 25 call. With all due respect, LTC Vindman wasn’t elected President of the United States; Donald Trump was and he doesn’t have to stick to Vindman’s TPs. [Astounding arrogance!]

 

@RepMarkMeadows: Vindman not wanting to discuss who in the intelligence community he talked to about this whole thing. Schiff cuts off question. Very interesting.

    Remarkably, in attempting to build their impeachment case, House Democrats are using yet another witness who has never met or talked to @realDonaldTrump.  They are relying on the witness’ disputed interpretation… of someone he’s never worked directly with.

Rep @EliseStefanik got Vindman and Williams to admit that Hunter Biden on Burisma’s board could be a conflict of interest.  She also got Vindman to suggest that he overstated his importance in regard to Ukraine policy and it is the President that sets the foreign policy for the USA.

Vindman admitted that Ukrainians felt no pressure to commence an investigation and Trump possesses the right to request foreign investigations.

GOP ranking member Devin Nunes asked Vindman if he has ever accessed someone’s personal information on NSC computers without their knowledge or authorization.  Obviously, Nunes already knew the answer.  It was a perjury trap.  Vindman responded: “Without their knowledge – no.”

GOP Rep Jim Jordan to Schiff: “The witness has testified in his deposition he doesn’t know who the whistleblower is. You have said – even though no one believes you – you don’t know who whistleblower is.   So how is this outing the whistleblower to find out who this individual is?”

Jordan: “The one thing they didn’t count on was the President releasing the transcript [of July 25 call].”

Vindman Refuses to Characterize Joe Biden’s Threat to Withhold Aid as ‘Wrong’

“I saw the snippet of the video, but I don’t know if I could make a judgment off of that.”…

https://www.breitbart.com/politics/2019/11/19/vindman-refuses-to-characterize-joe-bidens-threat-to-withhold-aid-as-wrong/

@RepLeeZeldin: The deposition transcript of Bill Taylor’s asst David Holmes was just released. Either Taylor’s testimony impeaches Holmes, Holmes’ testimony impeaches Taylor, or they impeached each other. Multiple contradictions between Holmes’ statements last Fri & Taylor’s statements last Wed

Devin Nunes to Sr NSC Official Morrison & Special Envoy to Ukraine Volker: “Did anyone ever ask you to bribe or extort anyone at any time during your time in the White House?” Morrison: “No”; Volker: No

Volker: “At no time was I aware of or knowingly took part in an effort to urge Ukraine to investigate former Vice President Biden I was never involved in anything that I considered to be bribery at all.”

GOP Rep @Jim_Jordan: Q: In no way shape or form… did you receive any indication whatsoever that resembled a quid pro quo. Is that correct?”  Ambassador Volker: “That’s correct.”

@TrumpWarRoom: Kurt Volker says aid being held up for a foreign country is not uncommon. “It’s something that had happened in my career in the past” under previous administrations, he said.

https://twitter.com/TrumpWarRoom/status/1196916662966128645?s=09

Volker: “As I remember, the meeting was essentially over when Ambassador Sondland made a general comment about investigations. I think all of us thought it was inappropriate. The conversation did not continue and the meeting concluded.”

@RepMarkMeadows: Timothy Morrison told us in his deposition he was worried the Trump/Zelensky phone call would be leaked from the inside and used by Washington, D.C. insiders for nefarious, unfair political purposes. Mr. Morrison was absolutely right.

Solomon: FBI misconduct file cited Strzok for security violation and ‘exceptionally poor judgment’

The agent testified he feared “somebody was not acting appropriately, somebody was trying to bury this” discovery of new Clinton email evidence, the files show.  Strzok offered a bevy of excuses for his inaction, including he was busy working the Trump-Russia case at the time. All were rejected. “The investigation reveals that there is no reasonable excuse for the FBI’s delay in following up on this matter,” the disciplinary file concluded.  The FBI also cited Strzok for a violation of security protocols for conducting bureau business on personal email and personal devices, putting his sensitive counterintelligence work at risk of compromise…

https://johnsolomonreports.com/russia-case-agent-strzok-cited-for-misconduct-security-violation-and-exceptionally-poor-judgment-in-fbi-memos/

Office of the Inspector General; U.S. Department of Justice

Audit of the Federal Bureau of Investigation’s Management of its Confidential Human Source Validation

Process    https://oig.justice.gov/reports/2019/a20009.pdf

 

Jeffery Epstein prison guards charged with falsifying records

https://www.foxnews.com/us/jeffrey-epstein-prison-guards-charged-with-falsifying-records

FBI investigating possibility of ‘criminal enterprise’ in Jeffrey Epstein death, prisons chief admits

https://www.foxnews.com/us/fbi-investigating-possibility-of-criminal-enterprise-in-jeffrey-epstein-death-prisons-chief-admits

Well that is all for today

I will see you THURSDAY night.

 

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