DEC 9/INSPECTOR GENERAL’S REPORT RELEASED AND VERY DEADLY TO THE DEMOCRATS//GOLD DOWN 60 CENTS TO $1460.65//SILVER UP 3 CENTS TO $16.61/MORE GOLD QUEUE JUMPING AT THE GOLD COMEX//MORE PROTESTS IN HONG KONG OVER THE WEEKEND//

GOLD::$1460.65 DOWN $0.60    (COMEX TO COMEX CLOSING)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver:$16.61 UP 3 CENTS  (COMEX TO COMEX CLOSING) : 

Closing access prices:

 

 

 

 

Gold :  $1460. 90

 

silver:  $16.60

 

 

 

COMEX DATA

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

today RECEIVING:  1294/1888

DLV615-T CME CLEARING
BUSINESS DATE: 12/06/2019 DAILY DELIVERY NOTICES RUN DATE: 12/06/2019
PRODUCT GROUP: METALS RUN TIME: 20:23:45
EXCHANGE: COMEX
CONTRACT: DECEMBER 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,459.100000000 USD
INTENT DATE: 12/06/2019 DELIVERY DATE: 12/10/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
072 H GOLDMAN 160
152 C DORMAN TRADING 1
355 C CREDIT SUISSE 4
435 H SCOTIA CAPITAL 154
624 C BOFA SECURITIES 61
657 C MORGAN STANLEY 44
661 C JP MORGAN 1277 1294
685 C RJ OBRIEN 1
686 C INTL FCSTONE 1 1
690 C ABN AMRO 381 10
732 C RBC CAP MARKETS 7
737 C ADVANTAGE 12 33
800 C MAREX SPEC 57 120
880 C CITIGROUP 22
880 H CITIGROUP 112
905 C ADM 24
____________________________________________________________________________________________

TOTAL: 1,888 1,888
MONTH TO DATE: 11,629

we are coming very close to a commercial failure!!

 

 

NUMBER OF NOTICES FILED TODAY FOR  DEC CONTRACT: 1888 NOTICE(S) FOR 188,800 OZ (5.872 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  11,629 NOTICES FOR 1,162,900 OZ  (36.171 TONNES)

 

 

 

SILVER

 

FOR DEC

 

 

29 NOTICE(S) FILED TODAY FOR 145,000  OZ/

 

total number of notices filed so far this month: 2794 for 13,970,000 oz

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Bitcoin: OPENING MORNING TRADE :  $ 7488 DOWN 21 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 7324 DOWN 184

 

 

 

Let us have a look at the data for today

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IN SILVER THE COMEX OI ROSE BY A HUGE  SIZED 1580 CONTRACTS FROM 204,953 UP TO 206,533 DESPITE THE HUGE 42 CENT LOSS IN SILVER PRICING AT THE COMEX.

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

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

; DEC 0; MARCH:  2832 AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  2832 CONTRACTS. WITH THE TRANSFER OF 2832 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 2832 EFP CONTRACTS TRANSLATES INTO 14.16 MILLION OZ  ACCOMPANYING:

1.THE 42 CENT LOSS IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

18.39   MILLION OZ  INITIALLY STANDING IN DEC

YESTERDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO CONTAIN SILVER’S PRICE…AND THEY WERE QUITE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL 42 CENTS).. BUT, OUR OFFICIAL SECTOR/BANKERS  WERE UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE  SOME SILVER LONGS AS THE TOTAL GAIN IN OI ON BOTH EXCHANGES TOTALED A HUMONGOUS  4412 CONTRACTS. OR 22.06 MILLION OZ…..( PLUS THE GAIN IN OZ STANDING OF .30 MILLION OZ)…THE RAID WAS A TOTAL FAILURE 

KEEP IN MIND THAT THE SPREADERS HAVE ALREADY STARTED THEIR INCREASE OF OI CONTRACTS IN SILVER.

 

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

15,977 CONTRACTS (FOR 7 TRADING DAYS TOTAL 15,977 CONTRACTS) OR 79.885 MILLION OZ: (AVERAGE PER DAY: 2282 CONTRACTS OR 11.41 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF DEC:  79.885 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 9.38% 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:          2,164.22   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

OCT 2019 TOTAL  EFP ISSUANCE:                                                  146.14 MILLION OZ

NOV 2019 TOTAL EFP ISSUANCE:                                                   213.60 MILLION OZ.

 

SPREADING LIQUIDATION HAS NOW STOPPED IN GOLD AS THEY MORPH INTO SILVER AS THEY HEAD TOWARDS THE NEW FRONT MONTH WILL BE JANUARY.

 

FOR THOSE OF YOU WHO ARE NEW, HERE IS THE MODUS OPERANDI OF THE SPREADERS AND THE CRIMINAL ELEMENT BEHIND IT:

 

THE SPREADING LIQUIDATION OPERATION IS NOW OVER FOR GOLD..AND WE WILL NOW MORPH INTO AN ACCUMULATION PHASE OF SPREADING CONTRACTS FOR SILVER.  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 SILVER AS THEY INCREASE THE OPEN INTEREST FOR THE SPREADERS. THE TOTAL COMEX SILVER 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  ACTIVE DELIVERY MONTH OF DEC HEADING TOWARDS THE  NON ACTIVE DELIVERY MONTH OF JANUARY FOR SILVER:

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  ACTIVE MONTH OF DEC BUT SO IS THE OPEN INTEREST OF SPREADERS. THE OPEN INTEREST IN SILVER WILL CONTINUE TO RISE UNTIL ONE WEEK BEFORE FIRST DAY NOTICE OF AN UPCOMING NON ACTIVE DELIVERY MONTH (JAN), 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.” 

 

 

 

 

RESULT: WE HAD A STRONG SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 1580, DESPITE THE 42 CENT FALL IN SILVER PRICING AT THE COMEX /YESTERDAY... THE CME NOTIFIED US THAT WE HAD A  HUMONGOUS SIZED EFP ISSUANCE OF 2832 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 HUMONGOUS SIZED: 4412 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 2832 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 1580 OI COMEX CONTRACTS. AND ALL OF THIS DEMAND HAPPENED WITH A 42 CENT LOSS IN PRICE OF SILVER AND A CLOSING PRICE OF $16.58 WITH RESPECT TO FRIDAY’S TRADING. YET WE STILL HAVE A STRONG AMOUNT OF SILVER STANDING AT THE COMEX FOR DELIVERY!! 

 

In ounces AT THE COMEX, the OI is still represented by JUST OVER 1 BILLION oz i.e. 1.033 BILLION OZ TO BE EXACT or 148% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT DEC MONTH/ THEY FILED AT THE COMEX: 29 NOTICE(S) FOR 145,000 OZ OF SILVER

IN SILVER,PRIOR TO TODAY, WE  SET THE NEW COMEX RECORD OF OPEN INTEREST AT 244,196 CONTRACTS ON AUG 22.2018 AND AGAIN THIS HAS BEEN SET WITH A LOW PRICE OF $14.7

 

.

 

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//   NOV: 2.630 MILLION OZ//DEC:  18.09 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)

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST FELL BY A CONSIDERABLE 7485 CONTRACTS, AND MOVING FURTHER FROM  THAT NEW ALL TIME RECORD OF 719,211 (SET NOV 20/2019). THE NEW OI RESTS AT 693,117. THE FALL IN COMEX OI  OCCURRED WITH A LARGE $16.75 PRICING LOSS ACCOMPANYING COMEX GOLD TRADING// FRIDAY// /

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A VERY STRONG SIZED 9146 CONTRACTS:

DEC 2019: 0 CONTRACTS, FEB>  9146 CONTRACTS AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 693,117,,.  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 SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 1661 CONTRACTS: 7485 CONTRACTS DECREASED AT THE COMEX  AND 9146 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 1661 CONTRACTS OR 166,100 OZ OR 5.166 TONNES.  FRIDAY WE HAD A LOSS OF $16.75 IN GOLD TRADING….

AND WITH THAT LOSS IN  PRICE, WE  HAD A GOOD GAIN IN GOLD TONNAGE OF 5.166  TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE  SUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (DOWN  $16.75) .THEY WERE ALSO UNSUCCESSFUL IN FLEECING  GOLD LONGS FROM THE GOLD ARENA AS WE HAD A STRONG GAIN IN OPEN INTEREST ON OUR TWO EXCHANGES (5.166 TONNES). THE SPREADING OPERATION HAS NOW SWITCHED OVER TO SILVER.

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF DEC : 59,450 CONTRACTS OR 5,945,000 oz OR 184.92 TONNES (7 TRADING DAY AND THUS AVERAGING: 8,492 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 7 TRADING DAYS IN  TONNES: 184.92 TONNES

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

THUS EFP TRANSFERS REPRESENTS 184.92/3550 x 100% TONNES =5.20% OF GLOBAL ANNUAL PRODUCTION

WE ARE WITNESSING AN INCREASING USE OF OUR EXCHANGE FOR PHYSICAL MECHANISM TO MOVE CONTRACTS OFF OF NY AND INTO LONDON. IT BEGAN IN JUNE 2019 AND CONTINUES TO THIS DAY.

 

 

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:     5910.6  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

NOV.2019 EFP ISSUANCE:                          568.20  TONNES

 

 

 

 

 

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

 

Result: A CONSIDERABLE SIZED DECREASE IN OI AT THE COMEX OF 7485 WITH THE  PRICING LOSS THAT GOLD UNDERTOOK YESTERDAY($16.75)) //.WE ALSO HAD A VERY STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 9146 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 9146 EFP CONTRACTS ISSUED, WE  HAD AN GOOD SIZED GAIN OF 2570 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

9140 CONTRACTS MOVE TO LONDON AND 7485 CONTRACTS DECREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 5.166 TONNES). ..AND THIS STRONG INCREASE OF DEMAND OCCURRED DESPITE A FALL IN PRICE OF $16.75 WITH RESPECT TO YESTERDAY’S TRADING AT THE COMEX.

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

 

 

 

 

 

 

 

 

we had:  845 notice(s) filed upon for 84,500 oz of gold at the comex.

 

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

GLD...

WITH GOLD DOWN $0.60 TODAY//(COMEX-TO COMEX)

A HUGE PAPER CHANGE IN GOLD INVENTORY AT THE GLD//

A WITHDRAWAL OF 2.34 MILLION OZ FROM THE GLD/

 

DEC 9/2019/Inventory rests tonight at 886.23 tonnes

 

 

 

 

SLV/

 

WITH SILVER UP 3 CENTS TODAY: 

 

A BIG CHANGE IN SILVER INVENTORY AT THE SLV:

A HUGE PAPER WITHDRAWAL OF 1.869 MILLION OZ

 

 

DEC 9/INVENTORY RESTS AT 367.100 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 1580 CONTRACTS from 204,953 UP TO 206,533 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 DEC. 0; FOR MAR  2832  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 2832 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 1580  CONTRACTS TO THE 2832 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A HUMONGOUS AND CRIMINALLY SIZED GAIN OF 4412 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 22.06 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: 7.32 MILLION OZ//NOV 2.63 MILLION OZ//DEC: 18.39 MILLION OZ//

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE 42 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// YESTERDAY. WE ALSO HAD A STRONG SIZED 2832 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)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED UP 2.46 POINTS OR 0.08%  //Hang Sang CLOSED DOWN 3.64 POINTS OR 0.01%   /The Nikkei closed UP 76.30 POINTS OR 0.33%//Australia’s all ordinaires CLOSED UP .34%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0394 /Oil UP TO 58.54 dollars per barrel for WTI and 63.76 for Brent. Stocks in Europe OPENED RED//  ONSHORE YUAN CLOSED DOWN // LAST AT 7.0394 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0354 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

3A//NORTH KOREA/ SOUTH KOREA

North Korea

North Korea states that denuclearization is off the negotiating table after talks breakdown.  Trump not worried at all at North Korea’s economy is faltering badly and need the west

(zero hedge)

3b) REPORT ON JAPAN

Japan/SoftBank/Goldman Sachs

Goldman Sachs which has a big position in We Work is loaning money to We Work and this will hopefully bail out SoftBank

(zerohedge)

3C  CHINA

i)CHINA

The war begins as China retaliates as the West shuns Huawei:  they order all government offices and public companies to replace foreign PC’s and software with Chinese

(zerohedge)

i b)CHINA/

It sure looks like Trump is winning especially on human rights:  China appears to be ending the Xingiang concentration camps
(zerohedge)

ii)Hong Kong/Macau, USA

More battles:  American citizen Tara Joseph, president of the Hong kong-American Chamber of Commerice has been rejected entry to MACAU

(zerohedge)

iii)HONG KONG

over the weekend massive protests in Hong Kong with the crowd estimated at 800,000.  It will be difficult for Mainland China to executive their reforms for HOng Kong

(zerohedge)

4/EUROPEAN AFFAIRS

Germany

Not good: Germany witnesses antifa radicals threatening to assassinate an populist AfD member of Parliament

(Watson/Summit News)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)SAUDI ARABIA/USA

Friday:

Six Saudis were arrested for questioning after the Pensacola shooting in the Air force training centre. Three were caught filming the attack

(zerohedge)

ii)IRAN/USA

Behind the scenes diplomacy sees an exchange of prisoners, where a uSA grad student was released along with an Iranian scientist

(zerohedge)

iii)Iran/USA

Not sure who is right since Iran cut off internet usage.  The USA claims 1,000 Iranian protesters were murdered by the Iranian regime
(zerohedge)

iv)Israel/IranIran will not be too happy with this:  Israel conducted a nuclear missile test “aimed at Iran”.  All planes  going out of Israel were halted and incoming traffic was re routed

(zerohedge)

6.Global Issues

Mexico

Mexican Peso rises as AFL CIO’ states that USMCA deal is near

(zerohedge)

7. OIL ISSUES

Aramco may be valued at zero next year

(Watkins)/Oil Price.com

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

i)Giustra is probably right: governments will shut down any really successful crypto operation

(Giustra/you tube)

ii)Nobody should take advice from the “squid ” Goldman Sachs although they suggest that we should purchase gold/gold stocks.

(Bloomberg/GATA)

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

a)again, another year end repo operation amid liquidity scramble as discussed below.

(zerohedge)

b)The truth behind the jobs report and the uSA economy from the guy who really knows..my favourite economist John Williams

(John Williams/Greg Hunter)

iii) Important USA Economic Stories

a)We continue to get poor trucking data.  Today heavy duty truck orders resume their downward slope down 39% last month and the weakest since 2015

(zerohedge)

b)Your most important commentary for today:  The BIS is the “Central Bank to all Central Banks” give us clarity as to what happened in the REPO operation beginning in September.  This is important because:

1. these guys ought to know
2 the BIS is engaging in all trading activity  and the reason for gold and silver manipulation
The BIS state that there were two reasons for JPMorgan’s removal of funds from the Repo pool..1).they were worried about a counterparty risk and 2/Hedge funds were in deep trouble due to leverage and needed funds.
Fund money can only be given to banks that take in deposits..This is totally illegal.
(zerohedge)

c)Morgan Stanley not doing too good this year..the just fired 1500 bankers in year end cost  cutting

(zerohedge)

iv) Swamp commentaries)

a)Watson describes Epstein has a Mossad agent brought in by Robert Maxwell, Ghislaine Maxwell’s father. Epstein received his entire wealth through extortion

(Paul Watson)

b)CNN ratings at a 3 yr low

(zerohedge)

c)DOJ Horowitz released his report on FBI conduct and find that there is clear abuse of the FISA process(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 FELL BY A CONSIDERABLE SIZED 7485 CONTRACTS TO A LEVEL OF 693,117 ACCOMPANYING THE LOSS OF $16.75 IN GOLD PRICING WITH RESPECT TO FRIDAY’S // COMEX TRADING)

WE ARE NOW IN THE  ACTIVE DELIVERY MONTH OF DEC..  THE CME REPORTS THAT THE BANKERS ISSUED A  STRONG SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 9146 EFP CONTRACTS WERE ISSUED:

DEC: 0 ; FEB: 9146  AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE:  9416 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: 2570 TOTAL CONTRACTS IN THAT 9146 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE LOST A CONSIDERABLE SIZED 7485 COMEX CONTRACTS.

THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD.  THE BANKERS WERE  SUCCESSFUL IN LOWERING GOLD’S PRICE AS THE BANKERS INITIATED ANOTHER RAID WITHIN ONE SECOND OF FOMC ANNOUNCEMENT OF JOB GAINS//// (IT FELL $16.75). AND THEY WERE MOST DEFINITELY UNSUCCESSFUL IN FLEECING ANY LONGS AS WE GAINED 1661 CONTRACTS ON OUR TWO EXCHANGES:

 

 

NET GAIN ON THE TWO EXCHANGES ::  1661 CONTRACTS OR 166,100 OZ OR 5.166 TONNES.  ( PLUS THE GAIN IN TONNES OF GOLD STANDING AT THE COMEX 1.785 TONNES)

We are now in the  active contract month of DEC.  This month is always the biggest delivery month of the year.  Here we have a total of 2277 open interest stand for a LOSS of 269contracts.  We had 845 notices filed upon yesterday so we AGAIN SURPRISINGLY GAINED FOR THE FIFTH DAY, A MONSTROUS  576 contracts or an additional 57,600 will stand (1.791 TONNES) for delivery at the comex as they will try their luck finding physical metal on this side of the pond as they refused to morph into London based forwards and negated on receiving a fiat bonus.

 

 

The next non active contract month after Dec, is  January and it saw its OI DECREASE by 38 contracts DOWN to 3899 which is extremely high for a January delivery month.. The next active delivery month after January is February and here we witnessed A LOSS  OF 8646 in contracts DOWN to 502,957.

 

 

TODAY’S NOTICES FILED:

 

WE HAD 1888 NOTICES FILED TODAY AT THE COMEX FOR  188,800 OZ. (5.872 TONNES)

 

 

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And now for the wild silver comex results.

Total COMEX silver OI SURPRISINGLY ROSE BY A VERY STRONG SIZED 1580 CONTRACTS FROM 204,953 DOWN TO 206,533 (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 STRONG  OI COMEX GAIN OCCURRED DESPITE A GOOD 42 CENT LOSS IN PRICING/FRIDAY.

WE ARE NOW INTO THE  ACTIVE DELIVERY MONTH OF DEC.

Here we have a gained of 3 contracts up to 917. We had 61 notices served up on longs yesterday, so we GAINED 64 contracts or an additional 320,000  oz will stand in this active delivery month of December as they guys refused to morph into London based forwards as well as negating a fiat bonus.

 

 

After December we have the non active month of January and here we see that we lost 43 contracts down to 1043.  FEBRUARY  saw A GAIN of 12 contracts to stand at 73.  MARCH saw an increase of 1064 contracts down to 162,695.  March is a very active month for silver.

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 29 notice(s) filed for 145,000 OZ for the DEC, 2019 COMEX contract for silver

Trading Volumes on the COMEX TODAY: 269,593  CONTRACTS 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  344,930  contracts

 

 

 

 

 

INITIAL standings for  DEC/GOLD

DEC 9/2019

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
53,748.564 oz oz
includes one kilobar
Deposits to the Dealer Inventory in oz nil oz

 

 

 

 

 

Deposits to the Customer Inventory, in oz  

7,109.158 oz

Scotia

 

 

No of oz served (contracts) today
1888 notice(s)
 188800 OZ
(5.872 TONNES)
No of oz to be served (notices)
389 contracts
38900 oz)
1.209 TONNES
Total monthly oz gold served (contracts) so far this month
11,629 notices
1162900 OZ
36.171 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

we had 0 dealer entry:

We had 1 kilobar entries

 

 

 

 

total dealer deposits: 0 oz

total dealer withdrawals: 0 oz

 

we had 1 deposit into the customer account

i) Into JPMorgan:  nil oz

 

ii)into Scotia:  7108.158

 

 

 

total gold deposits: 7108.185 oz

 

 

 

 

we had 2 gold withdrawal from the customer account:

I) OUT OF:  Brinks:  32.151 oz   (one kilobar)

ii) out of Scotia:  53,716.413 oz

 

 

 

 

total gold withdrawals; 53,748.564  oz

We had 1 adjustments

i) Out of Int Del. 123,170.484 oz was adjusted out  of the dealer and this landed into the customer account and we will deem this a settlement

and it certainly explains the huge amount of fake kilobars that went into Int. Delaware a month ago..these were used to move into the dealer account.

 

 

 

 

 

FOR THE DEC 2019 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 1277 notices were issued from their client or customer account. The total of all issuance by all participants equates to 1888 contract(s) of which 1294 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

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To calculate the INITIAL total number of gold ounces standing for the DEC /2019. contract month, we take the total number of notices filed so far for the month (11629) x 100 oz , to which we add the difference between the open interest for the front month of  DEC. (2277 contract) minus the number of notices served upon today (1888 x 100 oz per contract) equals 1,201,800 OZ OR 37.38 TONNES) the number of ounces standing in this  active month of DEC

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

No of notices served (11629 x 100 oz)  + (2275)OI for the front month minus the number of notices served upon today (1888 x 100 oz )which equals 1,201,800 oz standing OR 37.38 TONNES in this  active delivery month of DEC.

We gained 576 contracts or an additional 57,600 oz will stand at the comex as they refused to morph into London based forwards.

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES.… WE HAVE ONLY 38.66 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS.

HERE IS WHAT STOOD DURING THESE PAST 5 MONTHS:  AUGUST 27.153 TONNES

SEPT:                                                                      5.4525 TONNES

 

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

NOV……                                                                5.3841 tonnes

DEC………………………….                                              37.38 TONNES

 

 

ACCORDING TO COMEX RULES:

 

IF WE INCLUDE THE PAST 5 MONTHS OF SETTLEMENTS WE HAVE 11.6934 TONNES SETTLED

 

IF WE ADD THE FIVE DELIVERY MONTHS: 113.34  tonnes

 

Thus:

113.34 tonnes of delivery –

11.6934 TONNES DEEMED SETTLEMENT

= 101.6466 TONNES STANDING FOR METAL AGAINST 38.66 TONNES OF REGISTERED OR FOR SALE COMEX GOLD! THIS IS WHY GOLD IS SCARCE AT THE COMEX.

 

total registered or dealer gold:   1,481,253.546 oz or  46.07 tonnes 
which  includes the following:
a) registered gold that can be used to settle upon: 1,243,185.90 oz (38.66 tonnes)  
b) pledged gold held at HSBC  which cannot settle upon:  237,553.646 oz  ( 7.38989)//+ JPMorgan 513.930 oz (.0159 tonnes)
    total  238,067.576 oz (7.40490 tonnes) 
true registered gold  (total registered – pledged)  1,243,185.90 oz or 38.66
total registered, pledged  and eligible (customer) gold;   8,821,750.180 oz 274.39 tonnes
WHY ARE THEY NOT SETTLING?
THE COMEX IS AN ABSOLUTE FRAUD..WE HAVE ZERO SETTLEMENTS.

 

 

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 DEC.

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
DEC 9 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 300,266.400 oz
Scotia

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
543,687/805 oz
HSBC
No of oz served today (contracts)
29
CONTRACT(S)
(145,,000 OZ)
No of oz to be served (notices)
888 contracts
 4,440,000 oz)
Total monthly oz silver served (contracts)  2794 contracts

13,970,000 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  1 deposits into the customer account

into JPMorgan:   nil

 

ii) Into HSBC:   543,687.805 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 51.4% of all official comex silver. (161.1 million/313.4 million

 

 

 

 

total customer deposits today:  nil  oz

 

we had 1 withdrawals out of the customer account:

i) Out of Scotia:  300,266.400 oz

 

 

 

 

total withdrawals; 300,266.400  oz

We had 0 adjustment:

 

 

 

total dealer silver:  85.060 million

total dealer + customer silver:  314.780 million oz

 

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The total number of notices filed today for the DEC 2019. contract month is represented by 29 contract(s) FOR 145,000 oz

To calculate the number of silver ounces that will stand for delivery in  DEC, we take the total number of notices filed for the month so far at 2794 x 5,000 oz = 13,970,000 oz to which we add the difference between the open interest for the front month of DEC. (917) and the number of notices served upon today 29 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the DEC/2019 contract month: 2794 (notices served so far) x 5000 oz + OI for front month of DEC (917)- number of notices served upon today (29) x 5000 oz equals 18,415,000 oz of silver standing for the DEC contract month.

 

We gained 64 contracts or an additional 320,000 oz will stand at the comex as they, refused to morphed into London based forwards. 

 

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 29 notice(s) filed for 145,000 OZ for the DEC, 2019 COMEX contract for silver

 

 

TODAY’S ESTIMATED SILVER VOLUME:  30,598 CONTRACTS //

 

 

CONFIRMED VOLUME FOR YESTERDAY: 115,836 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 115,836 CONTRACTS EQUATES to 579 million  OZ 82.7.% OF ANNUAL GLOBAL PRODUCTION OF SILVER..makes sense!!

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

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

 

end

 

 

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NPV for Sprott

1. Sprott silver fund (PSLV): NAV FALLS TO -1.45% ((DEC 6/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.16% to NAV (DEC 6/2019 )
Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ -1.45%

(courtesy Sprott/GATA)

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

NAV 14.45 TRADING 13.93///DISCOUNT  3,57

 

END

 

 

And now the Gold inventory at the GLD/

DEC 9//WITH GOLD DOWN $.60: A HUGE PAPER WITHDRAWAL OF GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF 2.34 TONNES//INVENTORY RESTS AT 886.23 TONNES

DEC 6//WITH GOLD DOWN $16.75 NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 888.57 TONNES

DEC 5/2019: WITH GOLD UP $3.60 TODAY: A  SMALL CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF .59 TONNES/INVENTORY RESTS AT 888.57 TONNES

DEC 4/2019/WITH GOLD DOWN $4.00 TODAY//NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 889.16 TONNES

DEC 3/WITH GOLD UP $15.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 7.32 TONNES/INVENTORY RESTS AT 889.16 TONNES

 

DEC 2 /WITH GOLD DOWN $.40 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 895.60 TONNES

NOV 29/WITH GOLD UP $9.85//A SMALL  CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL TO PAY FOR FEES ETC./INVENTORY RESTS AT 895.60 TONNES

 

NOV 27//WITH GOLD DOWN $6.10 TODAY: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 896.48 TONNES//

NOV 26/WITH GOLD UP $3.10 TODAY:: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER GOLD DEPOSIT OF 4.69 TONNES INTO THE GLD///INVENTORY RESTS AT 896.48 TONNES

NOV 25/WITH GOLD DOWN $6.45: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 891.79 TONNES

NOV 22/WITH GOLD DOWN $1.00//NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 891.79 TONNES

NOV 21/ WITH GOLD DOWN $10.85 //NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 891.79 TONNES

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

 

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DEC 9/2019/Inventory rests tonight at 886.23 tonnes

*IN LAST 720 TRADING DAYS: 51.02 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 620 TRADING DAYS: A NET 116.03 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

 

end

 

Now the SLV Inventory/

DEC 9/WITH SILVER UP 3 CENTS TODAY: A HUGE PAPER WITHDRAWAL OF 1.869 MILLION OZ FROM SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 367.100 MILLION OZ/

DEC 6/WITH SILVER DOWN 42 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 368.969 MILLION OZ//

DEC 5//WITH SILVER UP 14 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 368.969 MILLION OZ//

DEC 4/WITH SILVER DOWN 31 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 368.969 MILLION OZ//

DEC 3//WITH SILVER UP 25 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 1.512 MILLION OZ FROM THE SLV.//INVENTORY RESTS AT 368.969 MILLION OZ..

DEC 2/WITH SILVER DOWN 9 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 370.481 MILLION OZ

NOV 29/WITH SILVER UP 4 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 2.383 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 370.481 MILLION OZ//

 

NOV 27/WITH SILVER DOWN 8 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 1.868 MILLION OZ OF SILVER FROM THE SLV///INVENTORY RESTS AT 372.864 MILLION OZ//

NOV 26//WITH SILVER UP 14 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY REST AT 374.732 MILLION OZ/

NOV 25/WITH SILVER DOWN 12  CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV///INVENTORY RESTS AT 374.732 MILLION OZ//

NOV 22/WITH SILVER DOWN 3 CENTS TO DAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 374.732 MILLION OZ

NOV 21/  WITH SILVER DOWN 5 CENTS TODAY/a big CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 84,000 OZ/INVENTORY RESTS AT 374.732 MILLION OZ//

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

 

 

DEC 9:  SLV INVENTORY

367.100 MILLION OZ

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 1.87/ and libor 6 month duration 1.89

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

G0LD LENDING RATE: + .02

 

XXXXXXXX

12 Month MM GOFO
+ 1.89%

LIBOR FOR 12 MONTH DURATION: 1.92

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.03

end

 

 

end

 

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

Gold $1600 In 2020 as Case for Diversifying into Gold ‘as Strong as Ever’ – Goldman

Gold will climb to $1,600 over the next year – Goldman

◆ Goldman is still forecasting that gold will climb to $1,600 over the next year due to investment demand.

 Investors should diversify their long-term bond holdings with gold, citing “fear-driven demand” for the precious metal – Goldman Sachs Group Inc.

◆ “We still see upside in gold as late cycle concerns and heightened political uncertainty will likely support investment demand” for bullion as a defensive asset.

◆ “Gold cannot fully replace government bonds in a portfolio, but the case to reallocate a portion of normal bond exposure to gold is as strong as ever.”

Full article via Bloomberg here

NEWS & COMMENTARY

Gold inches up on US-China trade uncertainty

Gold loses over 1% as better-than-expected U.S. jobs report lifts stocks and the dollar

Gold falls 1% after robust U.S. jobs data; palladium soars

Gold has been on a round trip to nowhere this week, trader says

Sovereign Gold Bonds in 2019: Really?

China’s November foreign exchange reserves fall more than expected amid focus on trade deal

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

06-Dec-19 1474.85 1459.65, 1122.80 1112.40 & 1328.54 1320.25
05-Dec-19 1474.60 1475.95, 1122.76 1122.31 & 1329.65 1329.54
04-Dec-19 1475.85 1475.10, 1131.53 1125.94 & 1332.54 1327.89
03-Dec-19 1470.40 1477.30, 1132.50 1136.78 & 1328.51 1333.12
02-Dec-19 1457.50 1461.15, 1130.00 1130.05 & 1323.26 1321.17
29-Nov-19 1456.35 1460.15, 1129.55 1131.32 & 1323.24 1327.42
28-Nov-19 1457.55 1454.65, 1127.27 1127.35 & 1323.60 1321.84
27-Nov-19 1459.80 1454.35, 1134.12 1129.74 & 1326.23 1322.30
26-Nov-19 1457.65 1454.65, 1133.76 1131.86 & 1322.96 1321.11
25-Nov-19 1459.45 1458.40, 1133.41 1130.84 & 1325.33 1323.35

Watch Our Latest Video Update Here

SIGN UP FOR OUR AWARD WINNING MARKET UPDATES HERE

Mark O’Byrne
Executive Director

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

Giustra is probably right: governments will shut down any really successful crypto operation

(Giustra/you tube)

Government will shut down any really successful crypto, mining entrepreneur Giustra says

 Section: 

9:44p ET Saturday, December 7, 2019

Dear Friend of GATA and Gold:

A friend tonight calls attention to the insightful comments made in September by zillionaire mining and movie entrepreneur Frank Giustra in an interview with Kitco’s Daniela Cambone, wherein Giustra explained why he thinks the gold price is “explosive” amid the devaluation of government currencies. He also describes his strategy for investing in gold stocks, which excludes the largest producers.

… 

Perhaps most interesting, asked about cryptocurrencies, Giustra says he is not enthusiastic about them, in part because he suspects that if a cryptocurrency ever starts to compete seriously with government currencies, government will shut it down.

Twice in 2017 Giustra told interviewers that he believes the gold price is “managed” by governments and investment banks:

http://gata.org/node/17223

http://www.gata.org/node/17453

But despite his warning about the threat governments pose to cryptos, the question of a similar threat to gold didn’t come up in the interview with Cambone three months ago. Instead Cambone induced Giustra to note that 80 percent of his work now is philanthropy and among other things he has gone into the olive oil business.

Maybe those two 2017 interviews were as close as Giustra dares to come to the primary determinant of the gold price, and his venture into the olive oil signifies that government made him an offer he couldn’t refuse.

In any case, for Giustra’s protection GATA is glad to certify here that none of his philanthropy has ever extended to us, despite our having approached him through mutual friends several times over the years to request an audience. GATA has learned that if we want the time of day when Giustra is around, it’s best to wear a watch.

Giustra’s September interview with Cambone is 20 minutes long and can be viewed at YouTube here:

https://www.youtube.com/watch?v=BnTHFGS58iE&feature=youtu.be

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

* * *

END

 

Nobody should take advice from the “squid ” Goldman Sachs although they suggest that we should purchase gold/gold stocks.

(Bloomberg/GATA)

With friends like Goldman Sachs, does gold need enemies?

 Section: 

Goldman Says Case to Diversify With Gold ‘as Strong as Ever’

By Yvonne Yue Li
Bloomberg News
Friday, December 6, 2019

Goldman Sachs Group Inc. said investors should diversify their long-term bond holdings with gold, citing “fear-driven demand” for the precious metal.

“Gold cannot fully replace government bonds in a portfolio, but the case to reallocate a portion of normal bond exposure to gold is as strong as ever,” Goldman analysts including Sabine Schels said in a note today. “We still see upside in gold as late cycle concerns and heightened political uncertainty will likely support investment demand” for bullion as a defensive asset. …

… For the remainder of the report:

https://www.bloomberg.com/news/articles/2019-12-06/goldman-says-case-for…

END

Cases of fine American wine await three GATA supporters — maybe you?

 Section: 

But you must reply by December 31.

* * *

11:05p ET Sunday, December 8, 2019

Dear Friend of GATA and Gold:

Can the chance of winning a great prize induce you to support a great cause?

Two thoughtful friends of GATA — one a leading bullion U.S. dealer, the other a well-regarded U.S. winery — have joined forces to bring our supporters a juicy year-end offer:

— The cause: Donate to GATA in any amount to support our mission and GATA supporter Stefan Gleason of Money Metals Exchange will match your gift up to a maximum total match of $5,000.

— The prize: You’ll be entered into a drawing for a free case of wine — three winners winning a case each — courtesy of our friend Fay Durrant at Fay J Winery in Texarkana, Texas.

Each bottle is privately labeled just for GATA —

http://www.gata.org/files/GATA-wine-bottles.jpg

— a personal touch that is sure to raise an eyebrow when you toast with friends and family. (Just whisper something about your connections in the wine business and keep ’em guessing.)

These generous offers from Money Metals Exchange and Fay J Winery expire December 31, so please act now.

And remember the ultimate benefit of supporting GATA — exposing the government-instigated manipulation of gold prices that reduces the value of your holdings, your mining company shares, and other commodity investments.

A great joy of participating in GATA is the outstanding friends you can make here. We are delighted to have such friends — like Stefan Gleason, Fay Durrant … and you.

But these great offers from Money Metals Exchange and Fay J Winery don’t mean a thing until you say yes.

As a small non-profit organization with a big mission, we rely on your support as we work to get the gold market and all markets out from under government’s boot and to expose and embarrass the central bankers for their market rigging.

Are you with us?

Nothing would delight us more than to tell you when the Fay J Winery draws the winning names in the first week of January that a case of wine is on its way to you.

GATA will need gifts of $1,000, $500, $100, $50, and even $10 by the end of the month if we are to secure the maximum $5,000 match from Stefan Gleason and Money Metals Exchange. We don’t want to leave money on the table.

So please just pick an amount that works for you.

Every gift of $10 received by December 31 entitles you to one chance to win one of the three cases of GATA private-label wine from the Fay J Winery. A $50 donation will earn five chances, a $100 donation 10 chances, a thousand-dollar donation a hundred chances, and so forth.

The winery can ship only within the continental United States, but if a drawing winner lives beyond the border, he will be welcome to collect his case in person in Texarkana, to have it shipped to a friend in the United States, or sell it to GATA, whose board members will find good use for it at their annual meeting next month.

All this will be a lot of effort on Fay’s part, on top of his contribution of the wine, so GATA is very grateful to him. Indeed, if we can make this fundraising drawing work, we hope to market GATA private-label wine through the Fay J Winery on a continuing basis.

A bottle of GATA wine on your dinner table when you’re entertaining guests or a bottle given to friends would be great ways of showing your support for the cause.

So please consider donating to GATA today.

Your contribution will be doubled by Stefan Gleason and Money Metals Exchange, you’ll sustain our struggle, and you might win a case of great wine.

With luck before too long you may be able to pop open a bottle to celebrate the defeat of the market riggers.

In summary:

— Donate $10 or more by credit card over the internet here —

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

— and send a confirming e-mail to your secretary/treasurer at CPowell@GATA.org with your name and postal address so we can contact you if you win.

— Or send a check by U.S. mail, along with your e-mail address or telephone number, to:

Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road,
Manchester, Connecticut 06043-7541
USA

However you donate, you’ll be entered to win a case of GATA private-label wine from Fay J Winery.

Thanks in advance for your support for our year-end matching gift campaign. Your support is what keeps us going against nearly all the money and power in the world.

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

END

iii) Other physical stories:

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 7.0394/ GETTING VERY DANGEROUSLY PAST  7:1

//OFFSHORE YUAN:  7.0354   /shanghai bourse CLOSED UP 2.46 POINTS OR 0.08%

HANG SANG CLOSED DOWN 3.64 POINTS OR 0.01%

 

2. Nikkei closed UP 76.30 POINTS OR 0.33%

 

 

 

 

3. Europe stocks OPENED ALL RED/

 

 

 

USA dollar index DOWN TO 97.58/Euro RISES TO 1.1074

3b Japan 10 year bond yield: RISES TO. –.00/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 108.46/ 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:: 58.54 and Brent: 63.76

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.31%/Italian 10 yr bond yield DOWN to 1.29% /SPAIN 10 YR BOND YIELD UP TO 0.46%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.60: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.43

3k Gold at $1464.60 silver at: 16.66   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 8/100 in roubles/dollar) 63.71

3m oil into the 58 dollar handle for WTI and 63 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 108.46 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 .9896 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0961 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 0.31%

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 1.82% early this morning. Thirty year rate at 2.26%

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

6.  TURKISH LIRA:  UP  TO 5.8029..GETTING DANGEROUSLY HIGH..

Global Market Rally Grinds To A Halt As US-China D-Day Looms

US futures and European stocks slumped, as did global treasury yields and the dollar, as traders shrugged off unexpectedly strong trade data from Germany instead focusing on the latest disappointing trade data from China ahead of an action-packed week that includes U.S. Federal Reserve and European Central Bank meetings and a UK election.

Markets had closed last week in an upbeat mood as blockbuster U.S. jobs data reassured investors about the U.S. economy and sent MSCI’s index of global stocks 0.8% higher but those gains stalled as worries about a Chinese economic slowdown returned.  Indeed, futures on all main US equity indexes pointed to a soft start on Wall Street after the latest disappointing Chinese trade data which saw a 3rd consecutive drop in exports, while traders awaited news on whether Washington will go ahead with a planned Dec 15 tariff hike on Chinese imports.

While several major events loom for the week — the Fed meets on Wednesday and new ECB chief Christine Lagarde holds her first policy meeting on Thursday, the same day as Britain’s parliamentary election, but at the forefront of investors’ minds is the Dec. 15 deadline for the United States to impose a new round of tariffs on China. The latest overnight news on that front came from China which said on Monday that it hoped to make a trade deal with the United States as soon as possible, one which satisfies both sides, Assistant Commerce Minister Ren Hongbin told reporters on Monday.

Meanwhile, on Saturday, China top diplomat Yang spoke with US Secretary of State Pompeo on Saturday, and said the US has seriously violated international relations by passing the Hong Kong and Uighur bills, while he urged the US to correct its mistakes and immediately stop interfering with China’s internal affairs. China’s Xinjiang region Governor said the US bill on Xinjiang is a severe violation of international law, while the Governor added the US bill has no regard for facts and has made groundless accusations against the human rights situation as well as the Chinese government. Elsewhere, China Global Times Chief Editor tweets that “Because of US obstruction, WTO’s appellate body which settles disputes between members will be unable to function on Tuesday. And it is the most important platform to ensure fair trade.”

With time running out for the U.S. and China to reach a deal that would ward off an escalation in tariffs, markets will be watching closely for any signs of progress. White House economic adviser Larry Kudlow said Friday the two sides are haggling over the amount of American farm products Beijing is willing to purchase. Data showed China’s exports fell 1.1% in November, with those to the U.S. tumbling 23%, underscoring why the Asian nation may want to resolve the dispute.

“There’s no upside risks on the horizon,” Katrina Ell, an economist at Moody’s Analytics, said on Bloomberg TV. “It is weighted to the downside and that big downside risk is coming from the trade war.”

In the absence of bigger “trade optimism”, and following Friday’s market surge following the blockbuster payrolls report, global risk mood was on the back foot with the Stoxx Europe 600 Index fluctuating before turning lower, with falling energy companies offsetting rising miners and retailers. Europe’s energy sector was the biggest loser of the day, falling almost 1% as shares in Tullow Oil slumped 60% to 19-year lows due to issues at its main producing assets in Ghana and the resignation of its chief executive.

Earlier in the session, Asia managed to notch up small gains, climbing for a third day and led by energy producers, with Japan’s Nikkei adding 0.33% and MSCI’s Asia-Pacific shares outside Japan up 0.15%, though gains mostly fizzled in Hong Kong and Shanghai. China’s latest unexpected export drop strengthened the case for an initial trade deal with the US, as Chinese exports to the US tumbled for a 12th month, sliding 23% Y/Y.

Concerns about damage being done to the global economy by the trade war, were renewed after China released data showing its exports shrank for the fourth consecutive month in November. Chinese exports slid 1.1% in November from a year earlier, missing economists forecasts for a 0.8% gain.

Chinese shares closed 0.2% lower, their losses checked by a rise in imports that was interpreted as a sign that Beijing’s stimulus steps are helping to stoke demand.

Japan’s Topix rose to a 14-month high, driven by electronic companies and chemical producers, as Japan’s economy expanded in the third quarter at a much faster pace than initially reported. The Shanghai Composite Index edged higher, with Foxconn Industrial Internet jumping and Jiangsu Hengrui Medicine sliding. India’s Sensex advanced, supported by Housing Development Finance and Reliance Industries.

In rates, 10Y Treasury yields inched lower, in keeping with market jitters as investors awaited the central bank meetings. U.S. 10-year Treasury yields were down 2 basis points at 1.8242%. Yields on German 10-year yields held around -0.30%, down from around 0.24% at the end of 2018, as major central banks resumed policy stimulus this year. Caution before this week’s central bank meetings and trade war uncertainty lifted sentiment towards safe-haven bonds at the start of the week. Ten-year bond yields in higher-rated euro zone states were down 1 to 2 basis points.

As Reuters notes, markets have been largely working on the assumption that the Dec. 15 tariffs, covering consumer goods such as cellphones and toys, will be dropped or postponed, given Trump will be unwilling to risk a year-end equity selloff. However, with less than a week to go, there is precious little movement.

In FX, the U.S. dollar, which bounced on Friday after data showed U.S. job growth increased in November by the most in 10 months, was down marginally against a basket of currencies and the euro. The strong labor market data in the United States allayed fears about a slowdown in the world’s largest economy which had been fanned by a series of weak figures on business and consumer activity.

“The clouds of recession still remain well offshore despite troubled economies elsewhere in the world and a trade war,” said Chris Rupkey, chief financial economist at MUFG Union Bank.

China’s yuan fell after the country’s exports unexpectedly declined. Chinese exports slid 1.1% in November from a year earlier, missing economists forecasts for a 0.8% gain. Exports to the U.S. dropped for a 12th month. China’s car sales extended their slump, all but ensuring a second straight annual decline. Volatility is reduced ahead of a series of risk events in coming days including Fed and ECB rate decisions, a U.K. election and a deadline for higher U.S. tariffs on China.

The biggest currency mover was the British pound which rose to a new 7-month high of $1.3180 as investors raised their bets on a Conservative Party victory – and a majority in parliament – in the general election.

Oil prices weakened after the disappointing Chinese trade data, with Brent futures down more than 1% at $63.73 per barrel after gaining about 3% last week on the news that OPEC and its allies would deepen output cuts.

In geopolitical news, White House National Security Adviser O’Brien warned US has many tools to deal with North Korea if it reneges on denuclearization commitments. Subsequently, North Korean Official notes that Pyongyang has nothing to lose, in response to US President Trump. Elsewhere, USTR Lighthizer and US Democrats are reportedly nearing a deal for Congress to pass USMCA, although hurdles remain according to reports citing sources familiar with the discussions.

Today, French President Macron hosts meeting on Ukraine in Paris with Russian President Putin, German Chancellor Merkel and Ukranian President Zelensky. No major economic data is scheduled. Chewy, MongoDB are among scheduled earnings.

Market Snapshot

  • S&P 500 futures down 0.1% to 3,141.75
  • STOXX Europe 600 down 0.2% to 406.62
  • MXAP up 0.3% to 165.55
  • MXAPJ up 0.2% to 526.11
  • Nikkei up 0.3% to 23,430.70
  • Topix up 0.5% to 1,722.07
  • Hang Seng Index down 0.01% to 26,494.73
  • Shanghai Composite up 0.08% to 2,914.48
  • Sensex up 0.07% to 40,475.24
  • Australia S&P/ASX 200 up 0.3% to 6,730.03
  • Kospi up 0.3% to 2,088.65
  • Brent Futures down 0.6% to $63.98/bbl
  • Gold spot up 0.2% to $1,463.05
  • U.S. Dollar Index down 0.09% to 97.61
  • German 10Y yield fell 1.9 bps to -0.305%
  • Euro up 0.07% to $1.1068
  • Brent Futures down 0.6% to $63.98/bbl
  • Italian 10Y yield fell 2.0 bps to 1.002%
  • Spanish 10Y yield fell 3.0 bps to 0.463%

Top Overnight News from Bloomberg

  • Polls in the Sunday newspapers all put the Conservatives in the lead. There were some signs that Jeremy Corbyn’s opposition Labour Party was closing the gap, but not by enough to keep the Conservatives out of powe.
  • The Chinese government has ordered state offices and public institutions to remove foreign computer equipment and software within three years, the Financial Times reported
  • Japan’s economy expanded in the third quarter at a much faster pace than initially reported, driven by stronger capital investment and private consumption ahead of October’s sales tax increase
  • The September mayhem in the U.S. repo market suggests there’s a structural problem in this vital corner of finance and the incident wasn’t just a temporary hiccup, according to a new analysis from the Bank for International Settlements
  • Support for Angela Merkel’s junior coalition partner fell to 11% in a weekly Forsa poll, matching an all-time low reached in June. Another poll gave the SPD a 1-percentage-point bump
  • Hong Kong saw its biggest pro-democracy protest in months on Sunday, signaling more unrest to come in 2020 as the movement that began in June to fight China’s increasing grip on the city shows its staying power
  • At least 15 central banks are set to hold their final monetary policy meetings of the year this week, with the Federal Reserve and the European Central Bank taking center stage. While rate setters in Washington and Frankfurt are predicted to maintain policy, their colleagues in Brazil, Russia, Turkey and Ukraine are all forecast to cut rates.
  • The September mayhem in the U.S. repo market suggests there’s a structural problem in this vital corner of finance and the incident wasn’t just a temporary hiccup, according to analysis from the Bank for International Settlements.
  • First it was Japan. Then Europe. Now investors are scanning the world for the next outbreak of stagnant inflation and tumbling yields.

Asian equity markets were mixed as the tailwinds from Friday’s stellar US NFP report was offset by mostly weaker than expected Chinese trade data including a surprise contraction in Exports and with some hesitation observed heading into a risk-packed week. ASX 200 (+0.3%) and Nikkei 225 (+0.3%) saw a firm start to the session led by outperformance in energy names following the OPEC+ agreement, although both indices briefly retraced the majority of their gains amid heavy losses in Australia’s gold miners and as recent JPY strength suppressed the effect of a firm upward revision to Q3 GDP. Hang Seng (U/C) and Shanghai Comp. (+2.4%) traded indecisively after the largely disappointing Chinese trade data and as China continued to voice discontent with US “interference” regarding the Hong Kong protests and Uighur Muslims. Furthermore, China reportedly denied entrance into Macau for the President of the American Chamber of Commerce in Hong Kong and have also ordered government offices and public institutions to remove all foreign computer equipment and software in 3 years. Finally, 10yr JGBs declined on spill-over selling from T-notes and with the pressure also a function of the gains in stocks, firm GDP revisions and tepid BoJ Rinban announcement valued at JPY 180bln.

Top Asian News

  • Japanification the Scourge Threatening to Go Global in 2020
  • Five Dead After Volcano Erupts Off New Zealand’s East Coast
  • Yes Bank Poised to Reject $1.2 Billion Offer From Braich
  • Singapore Has a Property Glut That Could Take Years to Clear

European equities kick the week off broadly lower, albeit marginally [Eurostoxx 50 -0.2%] after the NFP optimism waned and as sub-par Chinese data dented the mood. Sectors are mostly in the red – and with no clear standouts and little by way of a split between cyclicals and defensives to reflect the risk tone, although material names are underpinned by the Friday’s surge in base-metal prices. In terms of individual movers: Osram Licht (+14.4%) soared to the top of the pan-EU index after AMS (-3.0%) announced it has succeeded on its second attempt with a EUR 4.6bln bid for Osram which comes after it lowered the necessary acceptance rate to 55% vs. Prev. 62.5%. Elsewhere, Tesco shares (+5.4%) are supported after confirming exploration of options for its Thai and Malaysian units (which account for 10% of Co’s sales), including a possible sale which could fetch up to USD 9bln. Meanwhile, Just Eat (+0.5%) shares are underpinned after Prosus increased its offer for the Co. to GBP 7.40/shr, valuing the Co. at approx. GBP 5.1bln; additionally, acceptance level for the deal has been reduced to a simple majority. Number 10 shareholder Cat Rock (owns 2.6% of Just Eat) noted that Prosus’ offer needs to be at least GBP 9.25.shr to compete with Takeaway.com’s offer. Takeaway.com believe that their offer for the Co. remains ‘far superior’ to the Prosus one. On the flip side, Tullow Oil (-59.0%) shares plummeted after the Co. was hit by a double whammy in the form of a production outlook downgrade and the departure of its CEO. Other downside movers include the likes of Sanofi (-0.5%) and Kerry Group (-0.9%) – both on M&A news – with the former acquiring Synthorx for USD 2.5bln, whilst the latter is reportedly mulling acquiring DuPont’s Nutrition business – which could be valued around USD 25bln.

Top European News

  • Prosus Raises Just Eat Bid as Food Delivery War Intensifies
  • Tullow’s Old Guard Is Out as Poor Production Sees CEO Quit
  • Tesco Considers Sale of Asian Supermarkets in Pivot to U.K.
  • ‘Quantitative Failure’ Risk Mounts for Central Banks in 2020s

In FX, sterling is off best levels, but still firmly bid as the clock ticks down to Thursday’s GE and polls continue to flag victory for the Tories, albeit to varying degrees and ahead of the final YouGov MRP due to be published tomorrow evening. Indeed, the Pound continues to outperform G10 counterparts and is defying a broadly risk-off start to the week on the back of disappointing Chinese trade data that is undermining high beta currencies and those with closest connections naturally. Cable extended gains to circa 1.3181 at one stage, while Eur/Gbp probed just below 0.8400 before running into offers and bids respectively.

  • AUD/CAD/NZD – Predictably, the Aussie is bearing the brunt of the aforementioned smaller than forecast Chinese trade surplus that was largely due to an unexpected drop in exports, with Aud/Usd hovering around 0.6425 and Aud/Nzd retesting support ahead of 1.0400, like a 1.0407 Fib that only just held las Friday. Meanwhile, the Kiwi is pivoting 0.6550 vs its US peer and the Loonie is trying to pare losses in wake of starkly contrasting NA labour data in a relatively tight range either side of 1.3250 ahead of Canadian housing starts and building permits.
  • JPY/EUR/CHF – All narrowly mixed against the Greenback, as the DXY meanders between 97.602-725 parameters, but with the Yen benefiting from a grinding safe-haven bid and picking away at stops said to be sitting south of 108.50, while the Euro is straddling 1.1065 and Franc 0.9900 in the run up to ECB and SNB policy meetings hot on the heels of the Fed.
  • SEK/NOK – The Scandi Crowns are also feeling the adverse effects averse sentiment, as Eur/Sek rebounds towards 10.5500 and Eur/Nok nudges off sub-10.1000 lows on the back of technically delayed and mixed monthly Norwegian GDP prints for October.
  • EM – The Lira looks somewhat unimpressed with Turkey’s efforts to spur bank lending via targeted RRR tweaks, as Usd/Try trades close to 5.800 and multi-month peaks.

In commodities, the energy complex continues to drift lower following last week’s OPEC-induced surge in prices which received tailwinds from a blockbuster US jobs report. WTI Jan’20 futures have re-dipped below the 59/bbl mark whilst Brent Feb’20 futures gave up the USD 64/bbl in EU trade, with the magnitudes of the moves relatively tepid compared to Friday’s upside action. Analysts at ING believe that the action taken by OPEC+ (500k BPD deeper cuts and Saudi’s 400k BPD voluntary cuts on top of earlier curtailed output) will continue to support prices, thus the bank sees ICE Brent averaging USD 60/bbl in Q1 next year, with Q2 outlook contingent on the cartel’s next move in early March. ING note that upside risks to their forecast includes significant supply disruptions and meaningful progress on the US-China front. On that note, BofA expects Brent could be boosted to USD 70/bbl in the case of strong OPEC+ compliance and positive economic developments. Elsewhere, spot gold holds onto most of Friday’s losses with prices fluctuating within a relatively tight band ahead of its 21 DMA at USD 1464.65/oz and a risk-packed week. Copper has pared some of Friday’s gains as prices are modestly pressured by the latest Chinese trade data (which came in narrower than forecasts in USD and CNY terms) but cushioned by the breakdown, in which imports topped estimates and China copper imports hit a 13-month high on improved factory activity. Finally, iron ore prices feel little reprieve after November iron ore imports from China fell for a second straight month.

US event calendar

  • Nothing major scheduled

DB’s Jim Reid concludes the overnight wrap

What’s the financial market’s favourite Christmas song of all time? We will find out on Thursday as that’s the final question in the second of our monthly EMR surveys of market participants that we launch today. Last month, we had nearly 700 responses but the success and longevity of the survey relies on you filling it in. So I would really really appreciate it if as many of you as possible could do so up to the close at 5pm GMT on Wednesday. The link is here. It should take less than 5 minutes to fill in and we’ve simplified it from last month while asking a few more market related questions. We have decided to compile the longer-term questions on things like inflation on a quarterly basis. So this one is very market driven with a couple of specific 2020 questions. As before, you don’t have to answer all the questions, just skip the ones you don’t want to. We will hopefully be able to build up a time series of responses soon. All feedback and questions welcome. Long-time readers will know my favourite Xmas songs but I’ll keep my powder until the results on Thursday.

Nice to be back working as I was in the dog house all day yesterday as I accidentally let Bronte out of the back garden gate and she went missing for 3.5 hours. My mistake arose as I looked around for Bronte, couldn’t see her and opened the gate to slip out. Little did I know she was in my blind spot immediately behind my feet. Long-time readers will know the last time I lost her was at a motorway service station in France three years ago. That was a bit more stressful than yesterday as she was seen crossing the motorway a few times but we did worry a lot yesterday afternoon before my wife finally found her and managed to catch her sprinting across the nearby golf course, which after yesterday I may not see for a while. Sadly as she turns 5 this week we are always going to have to accept that she’s a wandering dog with absolutely no ability to ever go off lead. I hope we have better fortune bringing up our children. I’ll come back to you for proof either way in 2030.

While we’re on that year, a reminder that last week we released the latest edition of Konzept magazine ( link ), which has the title “Imagine 2030”, with over 20 articles looking at what the world might look like at the end of the next decade. If you want to know about a world of electric but not autonomous cars by then, the end of credit cards, whether we’ll still be using cash, the future of crypto currencies, how you will consume food, the rise of the drones, the outlook for India and China, what Europe needs to do to compete and catch-up, and what we think will be the main populism battleground in 2030 then do have a read.

 

Rewind 10 years and we have an interesting week ahead with the highlight probably the U.K. election on Thursday. Central banks will also be taking centre stage with a number of monetary policy meetings, most notably from the Fed (Wednesday conclusion) and the ECB (Thursday) where we will welcome Mrs Lagarde to the stage for the first time. Data releases to watch out for include US CPI (Wednesday) and retail sales (Friday), but trade might end up trumping (no pun intended) everything else as we build to Sunday’s tariff escalation deadline.

Reviewing these in more detail now and first the U.K. The weekend polls showed a wide spread of Tory leads from 6pts to 15pts but with the average edging back above 10pts after recently dipping below. A reminder that anything below a 6-7 point lead is around hung parliament territory. Our UK team put out a note towards the end of last week (link here ) in which they assess the policy stances of the parties in terms of the challenges facing the UK economy. They analyse the market implications of the different elections scenarios, ranging from a sizeable Conservative majority to a Labour majority, with various scenarios for a hung parliament in between.

With regards to the FOMC mid week, the Fed are not expected to move policy by anyone I can find but the meeting won’t be without interest as they will release the latest Summary of Economic Projections, with market participants focusing on the dot plot as usual for clues as to whether member’s rate biases are changing. Friday’s payrolls number (more below) will likely give them some confidence in the outlook. Regarding the ECB a day later on Thursday, although the market is similarly expecting no changes in interest rates, the meeting will be closely watched as it’s the first monetary policy decision since President Lagarde came to office. It’ll be interesting to see what she says in the subsequent press conference, and whether there are any updates on the upcoming strategic review. In their preview out late last week (link here), our European economists write that they expect the Governing Council “will likely remain cautious and view the balance of risks as still tilted to the downside.” Yet they also say that they think Lagarde will make an immediate change, and they say that “we expect the willingness to use “all instruments” to be conditioned on an assessment of the possible side effects of policy.” Lastly on central banks, next week also sees monetary policy decisions from Brazil on Wednesday, Switzerland and Turkey on Thursday, and Russia on Friday.

Looking at data releases to watch out for, the main highlights comes from the CPI release on Wednesday and the retail sales figures on Friday. For the CPI, the consensus reading is expecting a +0.2% mom increase in both the main CPI and core CPI, while for retail sales a +0.4% mom increase is expected. In more details on the CPI and detailing DB’s above consensus call, our economists suggest the gap between trimmed mean CPI and core CPI was 14bps in October, while the gap between the sticky CPI ex-shelter and core CPI was 19bps. These divergences are in the top 8% and 3% of historical experience, respectively. This note (link here) shows that these gaps can be very useful in predicting the change in the month-over-month core CPI print the following month, implying a strong monthly core CPI print for November. As such, the team expect November core CPI to rise +0.26% month-over-month.

From Europe, the highlights include the Euro Area industrial production data on Thursday, which has seen a consistent yoy decline for every month since November 2018. The consensus is actually expecting this will deepen into October, with the yoy number falling to -2.2%, (vs. -1.7% in September). We’ve also got the ZEW survey from Germany tomorrow, which last month showed some signs of stabilisation, as the current situation reading rose to -24.7, having been at a 9-year low the previous month. The expectations reading also rose to a 6-month high. Lastly on Tuesday we’ll get the monthly GDP data from the UK for October.

Back in Germany, the SPD conference over the weekend saw the party’s new leaders strike a more emollient tone on whether or not to stay in the coalition, with co-chairwoman Saskia Esken saying that “if there is a willingness to talk there’s always the chance to keep going”. They have released a list of demands they want to see implemented however, including a €12 per hour minimum wage, further action on climate change, and more investment spending. Whether their coalition partners in the CDU will agree to this is another matter, however, and CDU leader Annegret Kramp-Karrenbauer said that “This coalition is for the country, not trauma therapy for ruling parties”. One opinion poll out from Forsa put the Social Democrats on 11%, at a joint-record low, although an Emnid poll out over the weekend put them up 1pt to 16%

Looking at our screens overnight, Asian equities are mixed as investors await those central bank meetings and crucial trade news, with the Nikkei (+0.37%) and the Kospi (+0.35%) both up, while the Hang Seng (+0.02%) and the Shanghai Comp (-0.03%) have seen little change. S&P 500 futures are trading slightly lower, down -0.14%. The moves come as Japanese data overnight saw the final reading of Q3 GDP come in above expectations and the initial estimate, with +0.4% growth qoq, while yoy growth was up to +1.8%. Some of the strength will be consumers bringing forward purchases ahead of the October 1 consumption tax hike, but this is nonetheless a strong reading ahead of the BoJ’s decision next week.

The other important release over the weekend was the trade data from China, which showed exports down -1.1% yoy in November in USD terms, (vs. +0.8% expected), while exports to the US were down -23.0% yoy, in the biggest contraction since February. The trade balance was also lower than expected, at $38.73bn (vs. $44.50bn expected), and the figures demonstrate the importance for both economies of getting a trade deal, particularly with the December 15 deadline coming up on Sunday. Also on trade, overnight the Wall Street Journal reported that US Trade Representative Lighthizer and the House Democrats are nearing a deal for Congress to pass a revised version of the USMCA.

Recapping Friday’s news now before briefly reviewing last week and it was a bumper US jobs report that set the tone for markets, with nonfarm payrolls up +266k in November (vs. +180k expected), while there was an upward revision of +41k to the previous two months. The number was supported by the return of over 40,000 GM workers following a strike, but this still exceeded all analysts’ expectations on Bloomberg. This marks the strongest month since January, and saw the three-month rolling average rise to +205k, also the best since January. The unemployment rate ticked down a tenth to 3.5% (vs. 3.6% expected), in line with the joint-lowest rate since 1969, while the U6 measure that also includes those marginally attached to the labour force and the underemployed, fell to 6.9%, its joint lowest level since 2000. Meanwhile, wage growth was at +3.1% (vs. +3.0% expected), while the October number was revised up two-tenths to +3.2%.

Bolstered by the jobs report, the S&P 500 recovered to end the week up +0.16% (+0.91% Friday), with Friday’s session the strongest for the index in 5 weeks. Equities were further supported by positive noises on trade from Director of the National Economic Council, Larry Kudlow, who said on CNBC that “The deal is still close”. Added to this, the market then got the University of Michigan consumer sentiment reading, which surprised to the upside with a 99.2 reading (vs. 97.0 expected), a 7-month high. The other indicators were also supportive, with the current conditions reading up to 115.2 (vs. 112.8 expected), a 12-month high, while the expectations reading rose to 88.9 (vs. 87.5 expected), a 5-month high.

European equities were also up as the news was released, with the STOXX 600 -0.02% for the week (+1.16% Friday). US Treasuries sold off following the report, however, with 10yr yields up +6.1bps on the week (+2.6bps Friday) to 1.836%, a 3-week high, while the 2s10s curve steepened by +5.8bps (+0.3bps Friday). In Europe, 10yr bunds ended the week +7.4bs (+0.8bps Friday), while the spread of Italian 10yrs over bunds rose +4.6bps (-2.8bps Friday)

The other big mover on Friday was oil, which surged after the news that OPEC+ would be reducing output by 500,000 barrels per day, and Saudi Arabia also said they would be making a further cut of 400,000 b/d below their official output target. Brent Crude ended the week up +3.14% (+1.58% Friday), its strongest performance in 6 weeks, while WTI was up +7.30% (+1.32% Friday) in its strongest performance since June.

In terms of other data on Friday, we got disappointing German industrial production figures for October, which fell by -5.3% yoy (vs. -3.6% expected), the biggest annual contraction since November 2009. Capital goods drove the decline, with an -8.4% yoy contraction, and the release comes after negative data from Germany on factory orders earlier in the week, as well as retail sales the week before, suggesting a poor start heading into the fourth quarter.

Ahead of Thursday’s general election, one of the big stories in FX markets last week was the strengthening pound, which rose +1.66% against the dollar (-0.13% Friday), and reached its highest level against the euro since May 2017. Friday’s head-to-head debate didn’t seem to offer a clear winner, with a snap YouGov poll on which leader performed best showing that 52% of viewers preferred Prime Minister Johnson, while 48% opted for Labour leader Corbyn.

 

3A/ASIAN AFFAIRS

I)MONDAY MORNING/ SUNDAY NIGHT: 

SHANGHAI CLOSED UP 2.46 POINTS OR 0.08%  //Hang Sang CLOSED DOWN 3.64 POINTS OR 0.01%   /The Nikkei closed UP 76.30 POINTS OR 0.33%//Australia’s all ordinaires CLOSED UP .34%

/Chinese yuan (ONSHORE) closed DOWN  at 7.0394 /Oil UP TO 58.54 dollars per barrel for WTI and 63.76 for Brent. Stocks in Europe OPENED RED/ONSHORE YUAN CLOSED DOWN // LAST AT 7.0394 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0354 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY PAST 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

North Korea

North Korea states that denuclearization is off the negotiating table after talks breakdown.  Trump not worried at all at North Korea’s economy is faltering badly and need the west

(zero hedge)

North Korea Says Denuclearization “Off Negotiating Table” After Breakdown In Talks 

Just two days after North Korea resumed its “dotard” insults at President Trump, North Korea’s ambassador to the United Nations said on Saturday morning that further denuclearization talks are no longer needed with the Trump administration as it appears negotiations have stalled, reported Reuters.

In a statement to Reuters, NoKo ambassador, Kim Song, said: “We do not need to have lengthy talks with the US now and denuclearization is already gone out of the negotiating table.”

He added that “sustained and substantial dialogue” sought by the Trump administration was a “time-saving trick” to accommodate its domestic political agenda, likely referring to the upcoming election year where President Trump is trying to get as many wins as possible to fulfill talking points of first-term success.

We noted on Friday that there was less than a month to go before North Korea’s self-imposed end of year deadline to cut off nuclear negotiations with Washington if no new concessions were given in the path towards denuclearization.

With talks stalled and denuclearization off the table, it appears that the US and North Korea have wasted several years in discussions and have accomplished absolutely nothing.

Stay tuned as geopolitical uncertainty on the Korean Peninsula could erupt into the new year with a 20 megaton bang.

end

b) REPORT ON JAPAN

Japan/SoftBank/Goldman Sachs

Goldman Sachs which has a big position in We Work is loaning money to We Work and this will hopefully bail out SoftBank

(zerohedge)

Goldman Bails-Out Softbank With $1.75 Billion Loan To Bail-Out WeWork

In what appears to be an expensive game of three-card-Monte, Bloomberg reports that Goldman Sachs has agreed to bail-out Softbank’s huge money-losing bail-out of its investment in WeWork… saving Goldman’s money-losing bet on the office-space-leasing company.

 

Bloomberg reports that, according to people with knowledge of the matter, Goldman is arranging a $1.75 billion line of credit as the first step in SoftBank’s pledge to put together $5 billion in debt financing for WeWork as part of its bailout package.

The new credit line will replace existing facilities that total about $1.1 billion, and is designed to free up cash that’s being used as collateral in the existing letters of credit.

For now, WeWork’s bond price has limped higher in recent days…

 

Source: Bloomberg

Most notably, SoftBank will be listed as the borrower and WeWork will be a co-borrower.

Once the facility is in place, a $3.3 billion debt package will be arranged to complete the SoftBank plan, one of the people said. It’s not yet clear which banks will lead the second part of the debt financing.

But for now, many are still looking for answers from the original CEO as to just how this farce occurred…

Finally, as one veteran investor mocked – this all looks like one giant self-reacharound for Goldman to rescue their own investment in WeWork from further writedowns.

end

3 C CHINA

CHINA

The war begins as China retaliates as the West shuns Huawei:  they order all government offices and public companies to replace foreign PC’s and software with Chinese

(zerohedge)

China Retaliates For Huawei: Beijing Orders All Government Offices And Public Companies To Replace Foreign PCs And Software

In a potentially stinging blow to US computer makers such as Dell, HP and Microsoft, and an ominous development for all those who think the US-China trade war is about to come to an end, the FT reports that Beijing has ordered all government offices and public institutions to remove foreign computer equipment and software within three years.

While the US has been extremely vocal over the past year about banning US companies from using Chinese technology, mostly emerging from the Huawei ecosystem, the directive is “the first publicly known instruction with specific targets given to Chinese buyers to switch to domestic technology vendors” and is meant to echo efforts by the Trump administration to curb the use of Chinese technology in the US and its allies. The order is said to have come directly from the Chinese Communist party’s Central Office earlier this year.

Additionally, the FT notes that the move is part of a broader campaign to increase China’s reliance on home-made technologies, “and is likely to fuel concerns of “decoupling”, with supply chains between the US and China being severed.” The big irony here is that it was IBM’s sale of its PC group China’s Lenovo in 2004 that allowed China to develop its own PC architecture and supply chain, and effectively reverse engineer US dominance in the PC sector.

Quoting analysts at broker China Securities, the FT notes that some 20-30 million pieces of hardware will need to be swapped out as a result of the Chinese directive, with large scale replacement beginning next year. They added the substitutions would take place at a pace of 30 per cent in 2020, 50 per cent in 2021, and 20 per cent the year after, earning the policy the nickname “3-5-2”.

The 3-5-2 policy is part of a drive for China’s government agencies and critical infrastructure operators to use “secure and controllable” technology, as enshrined in the country’s Cyber Security Law passed in 2017.

But unlike previous pushes for self-sufficiency in technology, recent US sanctions have added urgency to the project, said Paul Triolo of consultancy Eurasia Group.

“China’s 3-5-2 programme is just the tip of the new spear,” said Mr Triolo. “The goal is clear: getting to a space largely free of the type of threats that ZTE, Huawei, Megvii, and Sugon now face,” he added, naming some of the Chinese companies that over the past two years have been blocked from buying from US suppliers.

Needless to say, if executed, such a drastic move by China would lead to massive lost revenue. How much? According to analysts at Jefferies, US technology companies generate as much as $150 billion a year in revenues from China, although much of that will come from private sector buyers. Still, it’s probably just a matter of time before Beijing expands the rule to all Chinese organizations, both public and private, especially since in China there is no such thing as purely private sector.

To be sure, Beijing faces an uphill battle as the proposed pace of replacement is extremely ambitious. Government offices already tend to use Lenovo’s desktop computers, following the company’s acquisition of US giant IBM’s personal computer division. Meanwhile, analysts say that it will be difficult to replace software with domestic alternatives, since most software vendors develop products for popular US-made operating systems such as Microsoft’s Windows and Apple’s macOS.

And although Microsoft did produce a “Chinese Government Edition” of Windows 10 in 2017 with its Chinese joint venture, Chinese cyber security firms now say government clients must move to entirely Chinese-made operating systems.

The other problem is that organic Chinese replacements don’t really exist yet: “China’s homemade operating systems, such as Kylin OS, have a much smaller ecosystem of developers producing compatible software.”

 

Defining “domestically made” is also challenging. Even though Lenovo is a Chinese-owned company that assembles many products in China, its computer processor chips are made by Intel and its hard drives by Samsung.

The take home message here is that US PC and software giants are about to lose billions in sale to Chinese customers, a move that will infuriate Trump who will, correctly, see such attempts to isolate the Chinese PC market from US vendors.

Meanwhile, as China seeks to onshore its reliance on US computers and operating systems, we are confident that Bloomberg’s Terminal sales in China are safe and sound. After all, recall that in the aftermath of Bloomberg reporter Mike Forsythe and Ben Richardson quitting the media empire over a censored China story, Bloomberg LP chairman Peter T. Grauer said publicly that the company should have reconsidered publishing critical articles about Chinese President Xi Jinping because they harmed Bloomberg’s bottom line.

In other words, when it comes to Bloomberg’s integrity, there are two key loopholes: coverage of Mike Bloomberg’s own affairs, reporting on Bloomberg’s democratic competitors in the presidential primary and, of course, coverage of China.

END
CHINA/
It sure looks like Trump is winning especially on human rights:  China appears to be ending the Xingiang cocnentration camps
(zerohedge)

China Appears To Be Ending Xinjiang Concentration Camps

In response to global outpouring of anger as well as last week’s House Bill sanctioning Chinese officials,the regional governor of China’s infamous Xinjiang region said the people held in camps have now “graduated” and new trainees will have the freedom to come and go, Reuters reported. Commenting on the striking development, Channel News reporter Wei Du said that “under pressure, China appears to be ending concentration camps in Xinjiang. Provincial governor says all those in “training centers” have now “graduated into gainful employment.”

Wei Du 杜唯

@WeiDuCNA

Under pressure, China appears to be ending concentration camps in Xinjiang. Provincial governor says all those in “training centers” have now “graduated into gainful employment.”

View image on TwitterView image on Twitter

While the west has frequently called the isolated compounds “concentration camps”, China has repeatedly denied any mistreatment of Uighurs and says the camps provide vocational and education training. It describes the detainees as students.

 

The United Nations and human rights groups estimate that between 1 million and 2 million people, mostly ethnic Uighur Muslims, have been detained in harsh conditions as part of what Beijing calls an anti-terrorism campaign.

Despite conceding to western pressure, governor Shohrat Zakir hit out at Western criticism of the camps and said the United States had launched a smear campaign against Xinjiang.

“At present the trainees who have participated…have all graduated,” Zakir told a news conference in Beijing. “With the help of the government, stable employment has been achieved and their quality of life has been improved.”

Xinjiang will continue with training based on “independent will” and “the freedom to come and go”, he said.

While China has never provided official figures on how many people have been held in the camps, Zakhir said foreign estimates were “pure fabrication” without giving details. He also called a measure passed by the U.S. House of Representatives that condemned China’s treatment of the Uighur minority a severe violation of international law and a gross interference in China’s internal affairs.

“The U.S. is getting restless and has launched a smear campaign against Xinjiang,” Zakir said. “But no force can stop Xinjiang’s progress toward stability and development.”

It was not immediately clear if this means that the “vocational” camps were now empty.

In response to the Reuters report, China’s Global Times editor and twitter troll, Hu Xijin, tweeted that “the Xinjiang vocational education and training centers have made decisive progress, both on de-radicalization work and on raising human rights standards.”

Hu Xijin 胡锡进

@HuXijin_GT

My understanding is that the Xinjiang vocational education and training centers have made decisive progress, both on de-radicalization work and on raising human rights standards. https://twitter.com/Reuters/status/1203989205396992001 

Reuters

@Reuters

China says people held in Xinjiang camps have ‘graduated’, condemns U.S. bill https://reut.rs/36saoYb

View image on Twitter

Claims about the camps are hard to verify as China only allows periodic supervised visits and gives little information on their operations. According to Reuters, in July, a Xinjiang official said most people had returned to society from the camps. Asked on Monday how many people had completed the training, Chinese foreign ministry spokeswoman Hua Chunying said she could not give an exact number.

 

“Because the number of people participating in these training centers is dynamic, there’s coming and going, so it’s very difficult to give an exact number,” Hua told reporters at a separate briefing.

At Zakir’s news conference, images of past violence were displayed in excerpts from an English-language documentary, “Fighting Terrorism in Xinjiang” aired on state broadcaster CGTN last week. Hua expressed disappointment at the lack of foreign media coverage of the documentary despite the intense concern over the Xinjiang issue. She said there had been no terrorist attack in Xinjiang in the past three years due to the success of the camps.

 

An image of what has been described as scenes of past violence is displayed in excerpts from a documentary “Fighting Terrorism in Xinjiang” at a news conference in Beijing, Dec 9. Photo: Reuters

The U.S. Uighur Act passed by the House of Representatives last week requires the U.S. president to condemn abuses against Muslims and calls for the closure of the camps in Xinjiang. It also calls on President Donald Trump to impose sanctions on a member of China’s powerful politburo, Xinjiang Communist Party Secretary Chen Quanguo.

The issue, along with Washington’s support for pro-democracy protesters in Hong Kong, complicates prospects for a near-term deal to end a 17-month long trade war between China and the United States.

Human rights groups and former detainees have said conditions in the camps are poor, with inmates subject to psychological and physical abuse.

END

CHINA//USA SOUTH AMERICA

It seems that China has ditched the USA with respect to soybeans with South America the winner in this manner

(zerohedge)

Watching The World’s Soybean Vessels Signals China Has Ditched US For South America 

We reported on Friday morning that China would waive import tariffs for soybeans and pork products from the US. Though China has made this claim for nearly a quarter, shipments have yet to tick significantly higher: 

US export data of soybeans and pork products to China and the rest of the world started to decline around the beginning of the trade war. Trade disputes between both countries forced China to reroute its agriculture supply chains out of the US to South America. It seems that the rest of the world followed China by ditching US farmers for South American ones.

The US will likely never be the primary supplier of food to China again. China has diversified its soybeans and pork to Brazil and Argentina. Though a crop failure or two would send China back to US markets temporarily, the days where the US was a one-stop-shop for China are over.

President Trump’s proposal to restore metal tariffs on both South American countries is a result of the administration’s outrage that China abandoned US farmers. Trump emphasized earlier this week that he would impose steel and aluminum tariffs on Brazil and Argentina because both countries are currency manipulators that are damaging US farmers. 

Though the currencies of Brazil and Argentina haven’t plunged because of manipulation, but rather because their commodity-driven economies are imploding as China’s economy decelerates to three-decade lows.

And to visualize President Trump’s frustration with China sourcing agriculture products from South America and not from the US.

We have produced a map showing all dry bulk, general cargo, and other dry vessels carrying agriculture products (fertilizers, grains, oil/oilseeds, meals/feeds/pulses, softs, and other agriculture products) across the world. Several significant trends are spotted on the map below. The first is how a massive flow of vessels are moving back and forth from Brazilian and Argentinean ports to Europe and China. The second observation is the muted activity on either coast of the US.

President Trump spent the month of Oct. pumping tweets of a trade deal and massive agriculture purchases by China.

So if there was actually a trade deal (as what the president tweeted), wouldn’t vessel activity on either coast of the US see increasing activity by now to haul farm products to China?

What’s even more puzzling is why a huge amount of vessel activity is seen in South America rather than the US. It could only mean one thing: China has abandoned US farmers.

end

Hong Kong/Macau, USA

More battles:  American citizen Tara Joseph, president of the Hong kong-American Chamber of Commerice has been rejected entry to MACAU

(zerohedge)

President Of Hong Kong American Chamber Of Commerce Rejected Entry To Macau

While China has considered those who drafted the US Hong Kong Human Rights and Democracy Act to be placed on a no-entry list — prohibiting them from traveling to mainland China, Hong Kong, and Macau, it seems that on Saturday a much broader list could already exist as the president of the American Chamber of Commerce (AmCham) in Hong Kong was detained and denied access to Macau.

Headlines hit around 6 am est. detailing how Tara Joseph, an American citizen and president of AmCham, was attempting to cross into the neighboring Chinese-ruled city of Macau, was detained for several hours by Chinese immigration officials and eventually released, but was denied access to the city, reported Reuters.

  • PRESIDENT OF AMERICAN CHAMBER OF COMMERCE IN HONG KONG SAYS SHE HAS BEEN DENIED ENTRY TO MACAU
  • AMCHAM HONG KONG PRESIDENT SAYS SHE WAS DETAINED FOR AROUND TWO HOURS BY IMMIGRATION OFFICIALS

Joseph said Chinese immigration officials gave her no reason for the denied entry.

The denial could be connected with escalating tensions between China and the US surrounding the violent Hong Kong protests.

haritho@haritho

China hitting back at US by detaining for two hours at border and denying entry to Macau https://twitter.com/rthk_enews/status/1203269683207520256 

RTHK English News@rthk_enews

ALERT: American Chamber of Commerce president was denied entry to Macau and detained by immigration officials for two hours, reports #Reuters

@Dystopia – Fight for #HKautonomy🇭🇰@Dystopia992

?
—Tara Joseph, the Head of Chamber of Commerce () in , was *detained for two hours* at the border & then denied entry into earlier today.

Looks like tension will keep growing with . 🇨🇳🇲🇴🇭🇰https://news.rthk.hk/rthk/en/component/k2/1496506-20191207.htm 

Amcham head denied entry to Macau, held for 2 hours – RTHK

The president of the American Chamber of Commerce (AmCham) in Hong Kong said on Saturday she was denied entry to Macau after being detained for around…

news.rthk.hk

AmCham has denounced the 2019 Hong Kong extradition bill, which would’ve allowed the transfer of suspects in Hong Kong to mainland China. The bill was the main trigger for the protests that ignited six months ago.

So maybe the no-entry list has already gone into effect, which would undoubtedly add to tensions between the US and China.

end

HONG KONG

over the weekend massive protests in Hong Kong with the crowd estimated at 800,000.  It will be difficult for Mainland China to executive their reforms for HOng Kong

(zerohedge)

 

Hong Kong Protests Attract Massive Crowds, Estimated 800k March In Financial District 

With zero signs of abating, hundreds of thousands of pro-democracy protestors lined the streets around Hong Kong’s financial and shopping districts on Sunday, demanding the Beijing-backed Hong Kong government fulfill their demands, reported Reuters.

The semi-peaceful protest, a drastic change from violent ones in the last several weeks that have been raging for at least six months, plunged the city into a dangerous recession in Nov., attracted at least 800,000 participants on Sunday, according to protest organizer Civil Human Rights Front. Though Hong Kong police said, approximately 200,000 showed up.

Reuters quoted protest chants as some said, “Fight for freedom! Stand with Hong Kong!,” while they marched across Victoria Park in the city’s shopping district and financial area.

A protester, by the name of Lawrence,23, told Reuters that, “It’s Christmas time soon, but we’re not in the mood to celebrate anymore.”

The Wall Street Journal spoke with Johnny Tung, 41, who joined the march with his two sons. He said, “as a Hong Konger, it’s my duty to be here today. Our people have tried protesting peacefully, we’ve done it more violently, but again and again, we’ve been ignored. I just want the government to please just respond to the people so society can return to peace.”

China has become more vocal about Western powers interfering in the Hong Kong protests since the US signed the Hong Kong Human Rights and Democracy Act HKHRDA) into law last month. This allows Washington to impose sanctions against Chinese and Hong Kong leaders responsible for human rights violations during the protests.

Beijing was furious when the US lawmakers passed HKHRDA, which they have vowed to retaliate with a no-entry list for US lawmakers behind drafting the bill, along with other government officials, though the true extent of the retaliation remains a mystery.

On Saturday, we noted that the president of the American Chamber of Commerce in Hong Kong was detained and then denied access to the neighboring Chinese city of Macau.

Protesters on Sunday had five demands for the unpopular Beijing-backed Carrie Lam government. Some of the requests include a complete withdrawal of the extradition bill from the legislative process, release and pardon of arrested protesters, and resignation of Lam.

Thousands on social media accounts documented the massive march with tons of video showing hundreds of thousands of protestors walking the streets.

🇦🇺🇺🇸🇦🇺@Frolencewalters

NOW – Kong The organizers of the large-scale demonstrations which kicked off HKong’s months-long protest movement earlier this year are taking to the streets again Sunday, in a bid to maintain pressure on the city’s government following the success of pro-democracy groups

Embedded video

Rachel Blundy

@rachelblundy

If you made a bet on Hong Kong’s pro-democracy movement still bringing out huge crowds after six consecutive months of demonstrations, well done, please collect your winnings

Embedded video

AFP news agency

@AFP

Organisers of a massive pro-democracy march in Hong Kong said some 800,000 people took part, the largest turnout in months as the movement marks half a year of protests and unrest

View image on Twitter

AFP news agency

@AFP

VIDEO: Watch as thousands of Hong Kong protesters thronging the city’s streets create a display of lights by holding aloft their mobile phones

Embedded video

The latest acceleration in social-economic turmoil in Hong Kong suggests that more unrest is coming for 1Q20. If China starts losing control of the city, then Beijing could be inclined to deploy PLA troops. It seems that this worst-case scenario might be realized sometime in 2020 if the escalation continues.

The question everyone is asking: With the Hong Kong bill passed into law — when do US lawmakers start sanctioning China and Hong Kong leaders over human rights violations? 

end

4/EUROPEAN AFFAIRS

Germany

Not good: Germany witnesses antifa radicals threatening to assassinate an populist AfD member of Parliament

(Watson/Summit News)

Germany: Antifa Radicals Threaten To Assassinate AfD Member Of Parliament

Authored by Paul Joseph Watson via Summit News,

Antifa extremists threatened to assassinate a member of parliament for the populist Alternative for Germany (AfD) party, even naming the exact date on which they would kill her.

Police confirmed that left-wing radicals posted signs outside Christina Baum’s dental office in Lauda-Königshofen yesterday, including a wooden cross which read, “Nazi whore Baum, after you no cock will crow, died on December 31st, 2019.”

“The cross was provided with various inscriptions, which contain on the one hand insults and on the other a threat to the member of parliament,” police said in a statement.

Baum posted a photo of the cross on Facebook with the caption, “The hatred of our political opponents is bearing fruit.”

Her campaign office in Tauberbischofsheim was also attacked back in November, causing significant damage.

AfD leader Jörg Meuthen urged the media and other political parties to “stop their hatred and their incitement against the AfD.”

 

“The seeds of hate being spread by governments and old parties against the AfD are daunting, and this threat to Christina Baum is just the tip of the iceberg, with attacks on AfD officials becoming more common and events of the AfD attacked, it is now apparently against life and limb of AfD politicians,” said Meuthen.

Figures show that exactly half of the 52 attacks on party headquarters and offices in Germany that occurred in the third quarter of this year targeted AfD premises.

*  *  *

end

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

SAUDI ARABIA/USA

Friday:

Six Saudis were arrested for questioning after the Pensacola shooting in the Air force training centre. Three were caught filming the attack

(zerohedge)

Six Saudis Arrested For Questioning After Pensacola Shooting – Three Were Filming Attack

Six Saudi nationals were taken into custody for questioning near the Florida naval base where an Air Force trainee – also from Saudi Arabia – opened fire Friday morning, killing three before a sheriff’s deputy shot and killed him.

According to the New York Timesthree of the Saudis were filming the attack. It is unknown whether they were students at the base, or whether they are connected to the gunman.

 

Mohammed Saeed Alshamrani (via the Daily Mail)

The shooting spanned two floors in a classroom, according to Sheriff David Morgan of Escambia Country. Two deputies were shot in the ensuing gun battle and are expected to recover.

The gunman, identified as Saudi Air Force second lieutenant Mohammed Saeed Alshamrani, used a locally bought Glock 45 9mm handgun with an extended magazine, and was carrying between four and six more magazines.

In his last message on Twitter confirmed by AFPAlshamrani wrotethat America is a nation of evil.

Rising serpent@rising_serpent

Pensacola terrorist’s last tweet.

View image on Twitter

The FBI is leading the investigation into the incident at Naval Air Station (NAS) Pensacola in Florida, and initially withheld Alshamrani’s name.

He was allegedly a student enrolled in a Navy training program designed for ” immersing international students in our U.S. Navy training and culture ” to help “build partnership capacity for both the present and for the years ahead,” accoring to Fox News, citing 2017 comments by Cmdr. Bill Gibson, who is the center’s officer in charge.

“These relationships are truly a win-win for everyone involved,” he added at the time.

Governor Rick Scott (R-FL) called for a “full review” of the Navy training programs in the wake of the shooting, while investigators have said they are exploring whether the attack was an act oforganized terrorism.

“I’m very concerned that the shooter in Pensacola was a foreign national training on a U.S. base. Today, I’m calling for a full review of the U.S. military programs to train foreign nationals on American soil. We shouldn’t be providing military training to people who wish us harm,” said Scott.

Defense Secretary Mark Esper told reporters Friday that although his first priority is supporting the ongoing investigation and determining the shooter’s motives, he also said: “I want to make sure we’re doing our due diligence to understand what are our procedures” concerning the training programs.

Is it sufficient [et cetera, et cetera] and it may not be — it may be the vetting — are we also screening persons coming to make sure that they have, you know, their life in order, you know, their mental health is adequate,” Esper said. “So we need to look at all that.”

Esper referred to the shooter as a Saudi national who was a second lieutenant in flight training.

Sources told Fox News that the scene of the shooting — a classroom, where students usually spend three months at the beginning of the program — indicated that the shooter was a student who was “early” in his training. –Fox News

 

Approximately 1,500 pilots are enrolled in the Naval training program – with Saudis having attended courses at the Pensacola site since the 1970s. According to the report, as many as 20 students from the Islamic Republic are in any given class – with many of them belonging to the Royal Family.

Following the shooting, the Saudi Arabian Ministry of Foreign Affairs conveyed “its deep distress,” offering “its sincere condolences to the victims’ families, and wishes the injured a speedy recovery.”

The perpetrator of this horrific attack does not represent the Saudi people whatsoever. The American people are held in the highest regard by the Saudi people,” reads a statement from the Ministry. “Building upon the strong ties between the Kingdom of Saudi Arabia and the United States of America, and in continuation of the ongoing cooperation between the two countries’ security agencies, the Saudi security agencies will provide full support to the US authorities to investigate the circumstances of this crime.”

President Trump, meanwhile, relayed King Salman of Saudi Arabia’s “sincere condolences,” and gave his “sympathies to the families and friends of the warriors who were killed and wounded in the attack…”

“The King said that the Saudi people are greatly angered by the barbaric actions of the shooter, and that this person in no way shape or form represents the feelings of the Saudi people who love the American people,” said Trump.

end

IRAN/USA

Behind the scenes diplomacy sees an exchange of prisoners, where a uSA grad student was released along with an Iranian scientist

(zerohedge)

Iran Releases American Grad Student Held Since 2016 In Prisoner Swap

Despite the US sanctions and propaganda war against Iran continually heating up since the hot summer of ‘tanker wars’ and September’s Saudi Aramco attacks blamed on Tehran, it appears there’s still some behind the scenes diplomacy happening, or at least indirectly via European mediation.

The White House on Saturday celebrated the release of Xiyue Wang, a Chinese-American graduate student detained in Iran since 2016, in a statement. “After more than three years of being held prisoner in Iran, Xiyue Wang is returning to the United States,” Trump said just after Wang was handed over to US authorities in Switzerland.

The release was secured through a prisoner swap with Tehran, with the negotiation of the Swiss as a ‘middle man’. In return the US released Iranian scientist Masoud Soleimani.

 

Xiyue Wang before his imprisonment in Iran. Image source: Princeton University/The Hill 

The Iranian scientist had been arrested by US authorities a year ago on charges of violating trade sanctions against Iran, but was reportedly expected to be released soon.

As for the American graduate student, he was a Princeton University scholar who while researching Iran’s Qajar dynasty for his Ph.D. inside the Islamic Republic was arrested August 2016.

After being sentenced to ten years in prison on charges of “spying” he was held at Tehran’s notorious Evin prison, where the country holds high profile political prisoners.

The indictment and trial records had been kept secret, given Princeton had issued a public statement saying it was prevented from obtaining any information on the case.

Javad Zarif

@JZarif

Glad that Professor Massoud Soleimani and Mr. Xiyue Wang will be joining their families shortly. Many thanks to all engaged, particularly the Swiss government.

View image on Twitter

The Iranian side was also celebratory on Saturday, with Iran’s foreign minister seen personally escorting Professor Massoud Soleimani back home.

Trump announced of the rare prisoner exchange, “We thank our Swiss partners for their assistance in negotiating Mr. Wang’s release with Iran.” He added, “The highest priority of the United States is the safety and well-being of its citizens. Freeing Americans held captive is of vital importance to my Administration, and we will continue to work hard to bring home all our citizens wrongfully held captive overseas.”

And Secretary of State Mike Pompeo said separately, “We continue to call for the release of all U.S. citizens unjustly detained in Iran.” He also gave rare acknowledgement that “Tehran has been constructive in this matter.”

end
Iran/USA
Not sure who is right since Iran cut off internet usage.  The USA claims 1,000 Iranian protesters were murdered by the Iranian regime
(zerohedge)

US Shocks With Inflated Claim Of 1,000 Iranian Protesters “Murdered” By Regime

The Trump administration has issued an assessment of the recent unrest in Iran which had raged for a couple weeks after protests in some 100 cities were triggered by a sudden fuel price hike on Nov. 15 when government subsidies were slashed. Though international reports and human rights monitoring groups have consistently cited a little over 200 killed (with the UN and Amnesty saying 208 or more), US figures are multiple times higher.

In a Thursday press briefing, the State Department said it has counted a whopping 1,000 protesters killed by Iranian security forces. Partly using local video as evidence, spokesman Brian Hook said, “As the truth is trickling out of Iran, it appears the regime could have murdered over 1,000 Iranian citizens since the protests began.”

He said the White House will urge Congress to impose further harsh sanctions on officials overseeing security forces, especially the IRGC-connected Basij paramilitary force, thought responsible for “mowing down” demonstrators.

 

Special Envoy for Iran Brian Hook

Hook also charged the regime with killing “at least a dozen children” and wounding many thousands in a crackdown involving torture among some of the over 7,000 arrested.

Though there’s widespread acknowledgement, even among some Iranian official sources, that the security crackdown has been harsh and in some instances involved ‘live fire,’ the US administration’s figure appears inflated for political purposes, as even The Washington Post acknowledges:

The State Department’s casualty numbers are much larger than estimates provided so far by independent groups. Amnesty International, for example, has confirmed about 200 deaths, though it said the number was likely to be much higher.

While showing a sample video of police attacking protesters  one among the32,000 videos and photos reportedly sent in after Pompeo’s earlier public call for ‘crackdown’ footage  Hook described, “The IRGC tracked them down and surrounded them with machine guns mounted on trucks”.

QuickTake by Bloomberg

@QuickTake

It appears the regime could have murdered over 1000 Iranian citizens since the protests began.”

Brian Hook, U.S. Special Representative for Iran, says “hundreds more” Iranian protesters have been killed than originally thought, including at least a dozen children

Embedded video

“Between the rounds of machine gun fire, the screams of the victims can be heard,” he said further of one dramatic scene. “In this one incident alone, the regime murdered as many as 100 Iranians and possibly more. When it was over, the regime loaded the bodies into trucks.”

And in emotionally jarring claims which resemble Washington talking points within the first years of proxy war in Syria (which were clearly geared toward regime change), the Post reports further:

 

Hook said that when families tried to recover the bodies, the IRGC demanded they pay the cost of the ammunition and extracted their promise not to hold public funerals.

Evidence for this and some of the other dramatic and harrowing details of torture and human rights abuses were not forthcoming, however, in what appears to be an active US policy of continued ‘overthrow the regime’ efforts targeting Tehran.

But the United Nations Human Rights commission did issue a special report on Friday which alleges Iranian security forces were “shooting to kill” in their deadly crackdown, which also primarily cited local video as evidence. Again the UN’s casualty count was just over 200 — some800 less than the now official administration figures

Meanwhile, Iranian leaders have claimed (also without evidence) that hostile external powers like the CIA and Israel’s Mossad have hijacked protests by sending “thugs” to initiate mayhem, resulting in the burning of hundreds of banks, gas stations, and security bases.

 

END

Israel/Iran

Iran will not be too happy with this:  Israel conducted a nuclear missile test “aimed at Iran”.  All planes  going out of Israel were halted and incoming traffic was re routed

(zerohedge)

Israel Conducted Nuclear Missile Test “Aimed At Iran”: FM Zarif

Iran is crying foul after Israeli’s Defense Ministry confirmed a major test of a mystery new “rocket propulsion system” on Friday morning.

“The defense establishment conducted a launch test a few minutes ago of a rocket propulsion system from a base in the center of the country,” the ministry said. “The test was scheduled in advance and was carried out as planned.”

Giving no further details, international reports were rife with speculation over the nature of the rocket, with many saying it was a nuclear-capable ballistic missile. This was enough for Iran’s Foreign Minister Mohammad Javad Zarif to go off, saying in a statement posted to Titter“Israel today tested a nuke-missile, aimed at Iran.”

Javad Zarif

@JZarif

Israel today tested a nuke-missile, aimed at Iran.

E3 & US never complain about the only nuclear arsenal in West Asia—armed with missiles actually DESIGNED to be capable of carrying nukes—but has fits of apoplexy over our conventional & defensive ones. https://www.i24news.tv/en/news/israel/diplomacy-defense/1575622953-israel-rocket-trails-over-tel-aviv-as-idf-conducts-unannounced-test 

i24NEWS – Israel: Rocket trails over Tel Aviv as IDF conducts unannounced test

The test disrupted flight patterns at Ben Gurion airport, requiring take-off and landings’ to shift north

i24news.tv

And he further complained that the West looks the other way when it comes to“about the only nuclear arsenal in West Asia,” but that it “has fits of apoplexy over our conventional defensive [rockets].”

The mystery Israeli test was significant enough to require the temporary diversion of all inbound flights to Tel Aviv’s Ben Gurion Airport.

Israeli media publications also considered the possibility that it was a ballistic missile test, likely nuclear warhead capable surface-to-surface Jericho system, an intercontinental ballistic missile which according to foreign reports can support a nuclear payload.

It comes at a tense time in the region following Israeli airstrikes on Syria and even Iraq, against what the IDF alleges were ‘Iranian targets’. According to the Times of Israel:

Israel does not publicly acknowledge having ballistic missiles in its arsenals, though according to foreign reports, the Jewish state possesses a nuclear-capable variety known as the Jericho that has a multi-stage engine, a 5,000-kilometer range and is capable of carrying a 1,000-kilogram warhead.

And according to a Avi Scharf, the editor of the English version of Haaretz newspaper, the missile test may have had a flight trajectory deep into the Mediterranean, as far West as past the island of Crete.

avi scharf

@avischarf

To track and handle it all, IAI telemetry plane + at least two Israeli AF g550 aewc/shavit spyplanes + hercs flew all the way out past Crete

View image on TwitterView image on Twitter

Tehran officials, while complaining about the provocative rocket test which they claimed was an ICBM, vowed they are still determined to resolutely continue its activities related to ballistic missiles and space launch vehicles.”

Israeli residents captured part of the rare launch on video:

Rebecca Rambar@RebeccaRambar

a effectué un essai du système de propulsion de missiles depuis la base aérienne de Palmachim, au sud de , en ce matin du 6 décembre 2019.
Le test a été pré-planifié et réalisé comme prévu.

Embedded video

Washington has repeatedly condemned similar Iranian launches, even while the program is not formally banned under the 2015 JCPOA, and has leveled sanctions targeting the Islamic Republic’s ability to produce advanced missiles.

end

6.Global Issues

Mexico

Mexican Peso rises as AFL CIO’ states that USMCA deal is near

(zerohedge)

Peso Pops As AFL-CIO’s Trumka Says USMCA Deal Done

After what AMLO called “a friendly nudge” this morning with regard mixing the progress of the USMCA Deal and the farcical impeachment process; AFL-CIO President Richard Trumka has told WaPo that there is a deal.

Source: Bloomberg

Trump announced the U.S.-Mexico-Canada agreement (USMCA) more than a year ago, but negotiations with House Democrats have been lengthy as leaders pushed for stronger labor and environmental regulations.

“We have pushed them hard and have done quite well,” Trumka said in an email to the Washington Post.

Fox News is confirming a deal is close…

 

Edward Lawrence

@EdwardLawrence

Multiple Congressional sources saying that there is a deal over USMCA with Mexico. I have multiple sources with stakeholders which USMCA will affect being told there is a deal and Canada approves. A Congressional source saying it will be finalized in next 24 hrs.

Of course, agreeing the NAFTA 2.0 deal would be a win for Trump but also for Democrats as they can claim that impeachment has not taken all the air out of the legislative room.

end

7. OIL ISSUES

Aramco may be valued at zero next year

(Watkins)/Oil Price.com

Forget The Hype, Aramco Shares May Be Valued At Zero Next Year

Authored by Simon Watkins via OilPrice.com,

This week will see the onset of full trading activity in the shares of Saudi Arabia’s flagship oil company, Aramco. Through a combination of wooing local retail investors via preferential loans, threatening wealthy Saudis with the sort of treatment they had during their imprisonment in the Ritz Carlton in 2017, and inveigling the two principal credit ratings agencies to toe the exact Saudi line on the ‘lack of significance’ of the ‘Houthi’ attacks on Abqaiq and Khurais, the Saudis have finally been able to sell off a part of Aramco. It may be nearly three years late, only around one third of the original amount intended, have no foreign listing, and be priced to value the entire company at much less than the US$2 trillion that Crown Prince Mohammad bin Salman (MbS) had staked his reputation on but it is done.

The shares are to be finally priced at the top end of the initial range, at SAR 32 (US$8), according to Saudi sources. The problem with this is that within the coming year Aramco shares could well be valued at US$0.

The reason for this is not connected to the fact that Aramco does not actually own any of the sites from which it extracts oil and gas – not a single field, not a single well. It is not connected to the fact that it is used as a conduit to fund the latest harebrained social or vanity projects that are nothing to do with its core business – including developing a USS5 billion ship repair and creating the King Abdullah University of Science and Technology. And nor is it connected to the mathematically impossible assertion by the Saudis that its oil reserves have remained at basically the same level for the last 30 or more years despite Saudi pumping an average of nearly three billion barrels of oil every year from 1973 to the end of 2017 –  totalling 132 billion barrels – with no new significant oil finds being made during that period. It is not even connected to the multiple class-action lawsuits that Saudi Arabia is facing from the families of the ‘9-11’ terrorist attacks for its part in them (15 of the 19 hijackers were Saudi nationals) nor to MbS personally giving the order to murder journalist Jamal Khashoggi, according to the CIA, among many others. These, though, were key reasons why no listing for Aramco took place in the U.S., and indeed the U.K.

The actual killer blow for Aramco is on the cards from the renewed impetus to finally get U.S. President Donald Trump to sign the ‘No Oil Producing and Exporting Cartels’ (NOPEC) Bill, as examined in depth in my new book on the oil markets. This Bill has a broad mandate, making it illegal to artificially cap oil (and gas) production or to set prices. Clearly, fixing (and later heavily influencing) oil pricing is the very reason why OPEC was established in 1960, Saudi Arabia has been its de facto leader ever since, and Aramco is the prime vehicle through which Saudi Arabia’s production and pricing strategies (and those of OPEC) are implemented. Nobody from the Saudi side seemed to have twigged to the fact that there was a major legal issue in this context from both the U.S. and U.K. perspective as both have anti-trust (or anti-monopoly) regulations with real practical bite.

With Aramco being the key instrument used to manage the oil market by the Saudis, even though it is not directly involved in making the policy, the anti-trust legislation of the U.S. and U.K. can point to Aramco as being collusive in price-fixing through adjusting output to manage oil prices. Conversely, once the Bill is enacted, if Aramco did abide by the anti-trust regulations then Saudi would have to give up its role at the head of OPEC, which clearly it would not wish to do. In addition to all of this, the NOPEC Bill immediately removes all sovereign immunity that presently exists in U.S. courts for OPEC as a group and for its individual member states – including, Saudi Arabia. According to legal sources in Washington familiar with the legislation and spoken to by OilPrice.com last week, this would open up Saudi’s US$1 trillion or so of assets in the U.S. to be seized in lawsuits. It would also mean that trading in Aramco’s products – including oil and gas – would be subject to the anti-trust legislation, meaning the prohibition of sales in US dollars (oil, of course, is priced in US dollars), and would also mean the eventual break-up of Aramco into much smaller constituent companies that are not capable of influencing the oil price, if the Saudis could offer up no other way of complying with the anti-trust laws.

Up until just earlier this year, the bill was progressing at a pace through the U.S. system and has come very close indeed to being passed into law before. A version of the NOPEC bill that managed to pass both houses of Congress (the House of Representatives and the Senate) in 2007 was shelved after President George W. Bush said he would veto the legislation. Trump’s view on the NOPEC bill has turned 180 degrees in recent months, however, according to Washington-based sources close to the Presidential Administration. Initially, Trump was happy to go along with the long-established relationship between the U.S. and Saudi, bolstered during his time by big arms deals to Saudi and Saudi’s role as the key alternative to Iran’s power in the Middle East. Trump’s generally supportive view of continuing this relationship endured even after the U.S. Senate voted last November to cut off U.S. support for Saudi Arabia’s war in Yemen. It also endured the bipartisan consensus across both U.S. congressional houses that condemned the murder of Saudi journalist Jamal Khashoggi after he entered the Consulate General of Saudi Arabia in Istanbul and never came out. Trump’s response to this was that Saudi Crown Prince Mohammad Bin Salman Al Saud: “Vehemently denies having ordered the assassination of Khashoggi.” This was despite the US’s own CIA concluding the opposite, as mentioned.

 

The turning point for Trump is in line with his broad-based mantra of ‘America First’ and came initially when Saudi joined forces with Russia in the form of OPEC+ to effect joint oil production cuts that – in the first few instances – were relatively effective in pushing oil process up, at one stage through the key US$80 per barrel (pb) level. Trump’s negativity over Saudi Arabia has worsened further in recent months, according to the Washington-based sources, as it is becoming increasingly clear that Saudi’s ability to influence the global oil price is not what it once was and, at the same time, Saudi appears to be drawing closer to Russia (Russia’s President Vladimir Putin received the full state visit trappings during his last visit to Riyadh in October). To become effective, the most recent U.S. Senate resolution on the NOPEC Bill must be passed by the Senate that commenced its sitting in January, and by the House of Representatives, which passed its own version of the resolution in February, before it goes to Trump.

Bewilderingly for those with a functioning memory, the Saudi reaction to the NOPEC threat is that – if it is passed – then the Saudis and OPEC will destroy the U.S. shale oil industry. It specifically stated that if the NOPEC bill became law then OPEC would split into its individual country constituents and each would boost production to their maximum levels. This would be done with the explicit aim of pushing oil prices down to below the US$30 per barrel psychological support level. This message was initially conveyed to the U.S. via its ally the UAE and has subsequently been reiterated both by it and by other U.S.-friendly OPEC members. Presumably once they had stopped laughing in the White House, the reaction would have been fairly sanguine, based on the previous attempt by the Saudis and OPEC to do exactly the same thing in exactly the same way from 2014 to 2016.

During those two years alone, OPEC member states lost at least a collective US$450 billion in oil revenues from the lower price environment, according to the IEA. They are still dealing with trying to fill in holes in their foreign exchange reserves and budgets accrued as oil prices were pushed down from over US$100 pb of WTI to below US$30 pb. Saudi Arabia itself moved from a budget surplus to a then-record high deficit in 2015 of US$98 billion and spent around US$250 billion of its foreign exchange reserves over that period that even senior Saudis have said are lost forever. Facing sizeable budget deficits every year until 2023 at the earliest, even by the most optimistic projections, Saudi’s need for a Brent oil price of over US$84/85 pb this year – the budget breakeven level – appears almost existential in nature. So bad is its current situation that it recalls the comment in October 2016 from the country’s deputy economic minister, Mohamed Al Tuwaijri, that: “If we [Saudi Arabia] don’t take any reform measures, and if the global economy stays the same, then we’re doomed to bankruptcy in three to four years.”

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1074 UP .0022 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL RED

 

 

USA/JAPAN YEN 107.85 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  MONDAY 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 UP 2.46 POINTS OR 0.00% 

 

//Hang Sang CLOSED DOWN 3.64 POINTS OR 0.01%

/AUSTRALIA CLOSED UP 0,34%// EUROPEAN BOURSES ALL RED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL RED 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 3.64 POINTS OR 0.01%

 

 

/SHANGHAI CLOSED UP 2.48 POINTS OR 0.08%

 

Australia BOURSE CLOSED UP. 34% 

 

 

Nikkei (Japan) CLOSED UP 76.30  POINTS OR 0.33%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1464.30

silver:$16.64-

Early MONDAY morning USA 10 year bond yield: 1.82% !!! DOWN 1 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 2.26 DOWN 2  IN BASIS POINTS from FRIDAY night.

USA dollar index early MONDAY morning: 97.58 DOWN 12 CENT(S) from  FRIDAY’s close.

This ends early morning numbers MONDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing MONDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.39% DOWN 8 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.00%  DOWN 3   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.45%//DOWN 3 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,28 DOWN 8 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 83 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.31% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.59% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR MONDAY

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

Euro/USA 1.1068  UP     .0015 or 15 basis points

USA/Japan: 108.61 UP .127 OR YEN DOWN 13 basis points/

Great Britain/USA 1.3151 DOWN .0021 POUND DOWN 21  BASIS POINTS)

Canadian dollar UP 12 basis points to 1.3232

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 7.0392    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  7.0380  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.8133 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.00%

 

Your closing 10 yr US bond yield UP 1 IN basis points from FRIDAY at 1.82 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.26 UP 3 in basis points on the day

Your closing USA dollar index, 97.15 UP 81  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED DOWN 5.72  0.08%

German Dax :  CLOSED DOWN 60.97 POINTS OR .46%

 

Paris Cac CLOSED DOWN 34.66 POINTS 0.59%

Spain IBEX CLOSED DOWN 28.10 POINTS or 0.30%

Italian MIB: CLOSED DOWN 225.82 POINTS OR 0.97.

 

 

 

WTI Oil price; 59.05 12:00  PM  EST

Brent Oil: 64.23 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    63.63  THE CROSS LOWER BY 0.03 RUBLES/DOLLAR (RUBLE HIGHER BY 3 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.31 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 :  58.93//

 

 

BRENT :  64.12

USA 10 YR BOND YIELD: … 1.83..DOWN ONE BASIS PT…

 

 

 

USA 30 YR BOND YIELD: 2.27.DOWN ONE BASIS PT..

 

 

 

 

 

EURO/USA 1.1065 ( UP 12   BASIS POINTS)

USA/JAPANESE YEN:108.62 UP .132 (YEN DOWN 13 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.66 DOWN 6 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.31450 UP 17  POINTS

 

the Turkish lira close: 5.8084

 

 

the Russian rouble 63.58   UP 0.09 Roubles against the uSA dollar.( UP 9 BASIS POINTS)

Canadian dollar:  1.3227 UP 17 BASIS pts

USA/CHINESE YUAN (CNY) :  7.0392  (ONSHORE)

 

 

USA/CHINESE YUAN(CNH): 7.0344 (OFFSHORE)

 

German 10 yr bond yield at 5 pm: ,-0.31%

 

The Dow closed DOWN 105.46 POINTS OR 0.38%

 

NASDAQ closed DOWN 34.70 POINTS OR 0.246%

 


VOLATILITY INDEX:  15.60 CLOSED UP 1.98

LIBOR 3 MONTH DURATION: 1.890%//libor dropping like a stone

 

USA trading today in Graph Form

Stocks Slide As Bond Yields, Dollar Erase Friday Jobs Spike

It appears Friday’s “goldilocks” jobs data has not cheered the bond and FX traders as much as the equity algos after all…

Source: Bloomberg

Maybe – bearing in mind last December – it’s time to leave ‘the game’ for now…

China stocks were mixed, not enjoyng any lift from US exuberance on Friday…

Source: Bloomberg

European stocks were all lower on the day led by Italy…

Source: Bloomberg

US markets were also all lower today with no trade-hype headlines to save the day – Nasdaq (AAPL) was the laggard as Small Caps managed to relatively outperform…

Very weak close for stocks.

The S&P found support at VWAP overnight but the opening ramp was quickly faded as Europe closed and really never recovered…

VIX was significantly higher today, topping 15.50

Notably, the machines attempted a short-squeeze today but it didn’t ignite the momo…

Source: Bloomberg

Small moves today but cyclicals underperformed…

Source: Bloomberg

Treasury yields were mixed today with the short-end around 1bps higher and long-end around 1bps lower…

Source: Bloomberg

The yield curve has continued to flatten since the payrolls print…

Source: Bloomberg

Notably the last few days have seen the market price out a significant amount of easing for the next year…

Source: Bloomberg

The dollar fell for the 6th day in the last 7 – erasing much of Friday’s jobs spike…

Source: Bloomberg

Yuan fell notably overnight but found support at the fix…

Source: Bloomberg

Cryptos are modestly lower from Friday’s close with two significant legs down today…

Source: Bloomberg

Copper had a big day, oil was lower as OPEC hopes faded and PMs were flat…

Source: Bloomberg

Copper futures pushed up to their highest since July..

 

In fact, if copper (relative to gold) was right, then 10Y Yields should be 20-25bps higher…

Source: Bloomberg

Finally, it appears Elizabeth Warren’s Tax-the-Everything-&-Everyone Plan jumped the shark as she is now in 4th place (in betting markets) with Biden re-accelerating…

Source: Bloomberg

And while the volume of negative-yielding bonds in the world has fallen, gold has held its value as bitcoin has slipped lower…

Source: Bloomberg

And 2019 is 2013…

Source: Bloomberg

…for now…

Source: Bloomberg

END

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

MARKET TRADING//USA

a)Market trading/THIS MORNING/USA

Stocks & Bonds Decouple – Yields Erase Payrolls Spike, Dow Unfazed

After spiking dramatically after the “great” jobs data on Friday, stocks are holding their gains but bond yields have erased the move entirely…

 

Source: Bloomberg

What happens next?

b)MARKET TRADING/USA/AFTERNOON

ii)Market data

again, another year end repo operation amid liquidity scramble as discussed below.

(zerohedge)

Fed’s Third “Year-End” Repo Oversubscribed Again Amid Liquidity Scramble As Dec 16 Tax Day Looms

One week after the Fed’s second 42-day term repo which allowed dealers to lock in funding into the new year and which was again oversubscribed, confirming a growing scramble for year-end funding, traders were looking ahead to the result from today’s third “year-end” repo, this time with a 28-day term maturing on January 6. And, as we noted last week, year-end liquidity fears remain front and center as the $25 billion – which the Fed expanded from $15 billion late last week – proved to again be roughly 40% below the required size to satisfy all liquidity demands.

Dealers submitted $43 BN in bids for the 28-day op ($29.80 BN in Treasurys, $0.1BN in Agency, $13.1BN in MBS paper), resulting in an oversubscription of the $25BN in available repo, and confirming that the Fed may have to add additional “year-end” repos to satisfy all dealer liquidity demand as we enter 2020.

This was modestly above the $42.550 billion submitted last week in the second 42-day repo operation conducted on December 2:

At the same time, the Fed also announced that in the latest overnight repo, it had accepted $56.4 billion in securities, a modest drop from the recent range and the lowest roll amount since the Fed expanded the available size of overnight repos to $100 billion. A big reason for this is likely that $25 billion was shifted over from overnight to 28-day term repos.

The biggest concern: the repo rate over year end remains stubbornly stuck well above 3%, more than double the Fed Fund rate, and clear evidence that the US interbank plumbing remains broken.

It remains a pressing question for funding markets why, even with QE4 in place and now daily overnight and short-term repo operations in place, banks continue to rush to lock in year-end liquidity, where some fear a similar explosion in overnight repo rates as was observed on Dec 31, 2018 when General Collateral soared amid a widespread liquidity shortage. Indeed, even with the Fed’s commitment to continue providing liquidity to the financial system around year-end, the market is still showing concerns, indicating that for all its telegraphed firepower, the Fed has failed to calm markets and ease counterparty risks which as the BIS observed yesterday, now involve hedge funds.

 

As a reminder, since the Sept 16 repo blow up, the Fed has injected $208 billion via “temporary” rolling overnight and term repos, and $114 billion via permanent T-Bill purchases.

What is even more troubling is that in just 6 days, the next major potential crack in the repo market is due: on Dec. 16 there is a tax payment day looming; that’s when cash is drained from the banking system, similar to the Sept 16 tax payment which many alleged sparked the original repo crisis, and as Bloomberg’s Marcus Ashworth notes, “with the repo rate over the year end more than double the Fed rate of 1.5%-1.75%, this is not proving to be a temporary problem.

END
The truth behind the jobs report and the uSA economy from the guy who really knows..my favourite economist John Williams
(John Williams/Greg Hunter)

Williams: “They’ve Effectively Lost Control Of The System”

Via Greg Hunter’s USAWatchdog.com,

Economist John Williams says don’t put too much faith in the good employment numbers that came out last week because “It’s not as happy of a picture as it looks.”

Williams is the founder of ShadowStats.com. His calculations strip out government accounting gimmicks to give a more accurate picture of economic data. Williams explains,

“What the Fed has done with their easing, according to the Fed, is they created a circumstance of sustainable moderate economic growth. So, they don’t need to cut rates anymore. That’s nonsense. You don’t have sustainable moderate growth. For example, look at this last month, industrial production is in a state of collapse… Manufacturing is negative… Oil production is collapsing year to year as oil and gas exploration has plunged. . . . Retail sales have been overstated in employment… That’s going to be revised lower… We have been getting better numbers as of late, and the economy is still falling off a cliff.”

Maybe that explains the Fed’s panic moves with $60 billion a month QE, which it says is not QE, and extreme intervention in the repo market where the Fed routinely pumps out tens of billions of dollars in liquidly a night. Williams says, “The system is not stable, and it probably is insolvent…”

“They blew the system back in 2007. They gave up on the domestic economy to save the banking system…

They spent all their resources propping up the banks, and they are still doing the same thing, and it’s still costing us in terms of economic growth.”

So, the Fed is pumping out billions of dollars every month, and yet, the economy keeps sinking. What does this tell Williams?

“The system is not operating properly. These are stopgap measures, stopgap liquidity that the Fed is putting into the system. If they understood what was going on, they would not be doing that. They wouldn’t have to do it. They have lost control of the system effectively,” says Williams.

Williams goes on to say, “It tells you the underlying system is unstable…”

 

I can see where the economy is based on the hard numbers even though they do funny things with the numbers. We are seeing a very weak economy here. Again, the Fed tightened and they eased to help the banks, but they did not do much to help the economy…

The banks are not as healthy as they appear and as they have been promoted. The Fed may well be on the brink of the type of crisis they had back in 2007.”

Join Greg Hunter of USAWatchdog.com as he goes One-on-One with economist John Williams, founder of ShadowStats.com.

To Donate to USAWatchdog.com Click Here

end

iii) Important USA Economic Stories

We continue to get poor trucking data.  Today heavy duty truck orders resume their downward slope down 39% last month and the weakest since 2015

(zerohedge)

November Heavy Duty Truck Orders Resume Collapse, Down 39% To Weakest Since 2015

The collapse in heavy duty trucking is getting tougher to blame on difficult YOY comps and is more and more looking like the symptom of a real manufacturing recession in the U.S.

Class 8 orders against collapsed in November, culminating a dismal year that some thought had seen a reprive with October’s improved bookings. But new data from FreightWaves shows that the collapse has continued its trend, indicating that the sluggish economy is to blame for lackluster replacement demand.

Orders totaled 17,300 units for the month, which marks the slowest November since 2015 and a 39% collapse from November 2018. The slowdown in orders is prompting layoffs of hundreds of production workers by companies like Daimler Trucks North America, Volvo Trucks North America, Paccar Inc. and Navistar International Corp.

Other names in the Class 8 supply chain are also dealing with the negative effects. For instance, engine manufacturer Cummins Inc. is “laying off 2,000 white-collar employees globally in the first quarter of 2020”.

Meanwhile, November used to be a month when fleets would be busy placing orders for the upcoming year. After October’s slight tick up in orders, many analysts thought November could follow suit. That didn’t happen, and sequentially November’s order book was down 21% from October. 

Tim DeNoyer, ACT Research vice president and senior analyst said: “The freight market downturn worsened in the past month, and uncertainty surrounding trade and tariffs continue to weigh on truck buyers’ psyches.”

 

Don Ake, FTR vice president of commercial vehicles commented: “The stalling of freight growth is causing fleets to exercise caution in placing orders for 2020. There will still be plenty of freight to haul, so we expect fleets will continue to be profitable and to replace older equipment. However, there won’t be a need for much additional equipment on the roads.”

“The industry thrives on stability, but we are now on a rocky road,” Ake concluded.

The rolling 12-month average for Class 8 orders is now 180,000 units and the industry backlog has collapsed to less than half of what it was in December 2018.

end
Your most important commentary for today:  The BIS is the “Central Bank to all Central Banks” give us clarity as to what happened in the REPO operation beginning in September.  This is important because:
1. these guys ought to know
2 the BIS is engaging in all trading activity  and the reason for gold and silver manipulation
The BIS state that there were two reasons for JPMorgan’s removal of funds from the Repo pool..1).they were worried about a counterparty risk and 2/Hedge funds were in deep trouble due to leverage and needed funds.
Fund money can only be given to banks that take in deposits..This is totally illegal.
(zerohedge)

“The Fed Was Suddenly Facing Multiple LTCMs”: BIS Offers A Stunning Explanation Of What Really Happened On Repocalypse Day

About a month ago, we first laid out how the sequence of liquidity-shrinking events that started about a year ago, and which starred the largest US commercial bank, JPMorgan, ultimately culminated with the mid-September repo explosion. Specifically we showed how JPM’s drain of liquidity via Money Markets and reserves parked at the Fed may have prompted the September repo crisis and subsequent launch of “Not QE” by the Fed in order to reduce its at risk capital and potentially lower its G-SIB charge – currently the highest of all major US banks.

Shortly thereafter, the FT was kind enough to provide confirmation that the biggest US bank had been quietly rotating out of cash, while repositioning its balance sheet in a major way, pushing more than $130bn of excess cash away from reserves in the process significantly tightening overall liquidity in the interbank market. We learned that the bulk of this money was allocated to long-dated bonds while cutting the amount of loans it holds, in what the FT dubbed was a “major shift in how the largest US bank by assets manages its enormous balance sheet.”

The moves saw the bank’s bond portfolio soar by 50%, and were prompted by capital rules that treated loans as riskier than bonds. And since JPM has been aggressively returning billions of dollars to shareholders in dividends and share buybacks each year, JPMorgan had far less room than most rivals to hold riskier assets, explaining its substantially higher G-SIB surcharge, which indicated that the Fed currently perceives JPM as the riskiest US bank for a variety of reasons.

 

An executive at a large institutional investor told the FT that what JPM did “is incredible”, adding that the scale of what JPMorgan is doing is mind-boggling . . . migrating out of cash into securities while loans are flat.”

The dramatic change, which occurred gradually over the year, and which may have catalyzed the spike in repo rates in September, was first flagged by JPMorgan at an investor event back in February. Then CFO Marianne Lake said that, after years of industry-leading loan growth, “we have to recognize the reality of the capital regime that we live in”.

About half a year later, the rest of the world did too when the overnight general collateral rate briefly did something nobody had ever expected it to do, when it exploded from 2% to about 10% in minutes, an absolutely unprecedented move, and certainly one that was seen as impossible in a world with an ocean of roughly $1.3 trillion in reserves floating around.

While readers can catch up on the nuances of what JPM did in our prior post, the bottom line is that the execution of the plan was flawless, and as we said at the start of November, “to ensure that JPM’s tens of billions in buybacks and dividends continue flowing smoothly and enriching the company’s shareholders, Jamie Dimon may have held the entire US financial system hostage, forcing the Fed’s hand to restart “Not QE.”

To be sure, the mere hint that the September repocalypse was an orchestrated event (in some ways similar to the Lehman failure which ushered in QE1), meant to extract liquidity concessions out of the Fed (NOT QE or QE 4 depending on one’s semantic persuasion) and enrich a handful of bank executives was scandalous enough, and could not be left unaddressed, especially since fears about repo market stability are once again growing now that just three weeks are left until the traditionally liquidity sapping year-end moment.

Well, to address just that, and to provide a fascinating new perspective on what may have catalyzed the Sept 17 events, which were “this close” from triggering an LTCM-like cascade within the market, the Bank of International Settlements – the central banks’ central bank – today published a paper as part of its quarterly review, titled “September stress in dollar repo markets: passing or structural?“, which “found” several things that we already knew – the September event was not a one-time, passing shock to the repo system contrary to what a handful of “know it all” fintwit accounts claimed but is a structural problem with US liquidity plumbing; it also found that just four commercial banks are now the dominant marginal lenders in the US repo market (and where just one, JPMorgan saw its liquidity provisioning collapse in the course of 2019 as noted above). However, in a novel twist, the BIS also found that hedge funds exacerbated the turmoil in the repo market with their thirst for borrowing cash to juice up returns on their trades.

Here is what the BIS said:

US repo markets currently rely heavily on four banks as marginal lenders. As the composition of their liquid assets became more skewed towards US Treasuries, their ability to supply funding at short notice in repo markets was diminished. At the same time, increased demand for funding from leveraged financial institutions (eg hedge funds) via Treasury repos appears to have compounded the strains of the temporary factors.

The BIS also echoed the now widely accepted justification for the Fed’s recent decision to resume POMOs, saying that it is also possible that the “low” level of reserves, and the financial system’s inability to revert back to normalcy, may also have catalyzed the repo move:

Finally, the stress may have been amplified in part by hysteresis effects brought about by a long period of abundant reserves, owing to the Federal Reserve’s large-scale asset purchases.

Here, one can argue that the implication of that sentence alone are staggering, as they confirm what most have already known: there is no way the financial system can ever return to a world without trillions and trillions in “excess reserves.” For the BIS to make that admission is rather striking, as it underscores that the world will never again be able to exist in a regime in which central banks do not constantly create money (or reserves) out of thin air to prop up asset prices.

Yet while that topic alone is worth a post or several thousand (we have certainly beaten this particular horse to death over the past decade), the core focus of the BIS paper in question was to identify more “usual suspects” on which to blame both the recent, and all future – because these are only just starting – repo crises.

Enter hedge funds.

First, a quick detour: when it comes to potentially systemic factors affecting the US financial system, none have more importance and gravity than the repo market. As the BIS writes, “Repo markets redistribute liquidity between financial institutions: not only banks (as is the case with the federal funds market), but also insurance companies, asset managers, money market funds and other institutional investors. In so doing, they help other financial markets to function smoothly. Thus, any sustained disruption in this market, with daily turnover in the US market of about $1 trillion, could quickly ripple through the financial system. The freezing-up of repo markets in late 2008 was one of the most damaging aspects of the Great Financial Crisis (GFC).

Keeping the above in mind, here’s a quick remind of what happened on September 17: the secured overnight funding rate (SOFR), the new, repo market-based, US dollar overnight reference rate which is supposed to replace over the next two years – more than doubled, and the intraday range jumped to about 700 basis points when repo rates typically fluctuate in an intraday range of 10 basis points, or at most 20 basis points. Intraday volatility in the federal funds rate exploded. Hot take explanations for this move include a due date for US corporate taxes and a large settlement of US Treasury securities. However, as first we, and then now the BIS admits, “none of these temporary factors can fully explain the exceptional jump in repo rate.”

Ok, but all of the above was known before. What’s new about the BIS’ paper?

Well, in the aftermath of Sept 17, attention focused on the role played by banks, which had become reluctant to lend cash into the market despite the higher interest rates on offer. And while the BIS acknowledged that the pullback by banks, especially the “Big Four”, was a significant factor in the shake-up,

… it also said that cash-hungry hedge funds had amplified the dislocation.

“High demand for secured (repo) funding from non-financial institutions, such as hedge funds heavily engaged in leveraging up relative value trades,” was a key factor behind the chaos, said Claudio Borio, head of the monetary and economic department at the BIS.

The BIS’s finding is novel, and surprising, as they highlight the “growing clout of hedge funds in the repo market” according to the FT, which notes something we pointed out one year ago: hedge funds such as Millennium, Citadel and Point 72 are not only active in the repo market, they are also the most heavily leveraged multi-strat funds in the world, taking something like $20-$30 billion in net AUM and levering it up to $200 billion. They achieve said leverage using repo.

One increasingly popular hedge fund strategy involves buying US Treasuries while selling equivalent derivatives contracts, such as interest rate futures, and pocketing the arb, or difference in price between the two.

While on its own this trade is not very profitable, given the close relationship in price between the two sides of the trade. But as LTCM knows too well, that’s what leverage is for. Lots and lots and lots of leverage.

As the FT notes, people active in the short-term borrowing markets say that to fire up returns, “some hedge funds take the Treasury security they have just bought and use it to secure cash loans in the repo market. They then use this fresh cash to increase the size of the trade, repeating the process over and over and ratcheting up the potential returns.

In short, and as shown in the chart above, some of the world’s biggest hedge funds are active in the repo market to boost their returns. The problem is what happens when repo rates get unhinged as happened on September 17: for the best example of how market players react when their underlying correlations go tilt, look no further than what happened to LTCM in 1998.

This also explains why the Fed panicked in response to the GC repo rate blowing out to 10% on Sept 17, and instantly implemented repos as well as rushed to launch QE 4: not only was Fed Chair Powell facing an LTCM like situation, but because the repo-funded arb was (ab)used by most multi-strat funds, the Federal Reserve was suddenly facing a constellation of multiple LTCM blow-ups that could have started an avalanche that would have resulted in trillions of assets being forcefully liquidated as a tsunami of margin calls hit the hedge funds world.

Here it is the Big Four banks that were once again instrumental in allowing this arb to emerge in the first place. As the BIS notes, “concurrent with the growing role of the largest four banks in the repo market, their liquid asset holdings have become increasingly skewed towards US Treasuries, much more so than for the other, smaller banks. (chart below, right-hand panel). As of the second quarter of 2019, the big four banks alone accounted for more than 50% of the total Treasury securities held by banks in the United States – the largest 30 banks held about 90% (chart below, left-hand panel). At the same time, the four largest banks held only about 25% of reserves (ie funding that they could supply at short notice in repo markets).

Ironically, for years this “arb” strategy was once popular among the dealer banks themselves, but higher capital charges since the financial crisis led to their displacement by hedge funds, which have more ability to take on risk.

This is how the BIS explains, in not so many words, how the financial system came close to the verge of collapse on September 17:

Shifts in repo borrowing and lending by non-bank participants may have also played a role in the repo rate spike. Market commentary suggests that, in preceding quarters, leveraged players (eg hedge funds) were increasing their demand for Treasury repos to fund arbitrage trades between cash bonds and derivatives. Since 2017, MMFs have been lending to a broader range of repo counterparties, including hedge funds, potentially obtaining higher returns. These transactions are cleared by the Fixed Income Clearing Corporation (FICC), with a dealer sponsor (usually a bank or broker-dealer) taking on the credit risk. The resulting remarkable rise in FICC-cleared repos indirectly connected these players. During September, however, quantities dropped and rates rose, suggesting a reluctance, also on the part of MMFs, to lend into these markets (Graph A.2, right-hand panel). Market intelligence suggests MMFs were concerned by potential large redemptions given strong prior inflows. Counterparty exposure limits may have contributed to the drop in quantities, as these repos now account for almost 20% of the total provided by MMFs.

What this means is that contrary to our initial take that banks were pulling from the repo market due to counterparty fears about other banks, they were instead spooked over exposure by other hedge funds, who have become the dominant marginal- and completely unregulated – repo counterparty to liquidity lending banks; without said liquidity, massive hedge fund regulatory leverage such as that shown above would become effectively impossible.

Meanwhile, as banks pulled back from the repo market amid their “reluctance” to lend to these markets amid “concerns for large redemptions”, hedge funds have sought cash from new sources, such as non-bank dealers or through a platform run by the Fixed Income Clearing Corporation that gives them access to cash from money market funds and other lenders. As a reminder, the “hail mary” thesis of the uber bearish CIO of Horseman Global, Russel Clark, is that clearinghouses will collapse as liquidity is drained from the market:

LCH claim to have done a quadrillion of compression trades or netting in the last year, this is more than twice the notional of all outstanding interest rate derivatives.

If initial margins rise significantly, the only assets that will see a bid will be cash, US treasuries, JGBs, Bunds, Yen and Swiss Franc. Everything else will likely face selling pressure. If a major clearinghouse should fail due to two counterparties failing, then many centrally cleared hedges will also fail. If this happens, you will not receive the cash from your bearish hedge, as the counterparty has gone bust, and the clearinghouse needs to pay from its own capital or even get be recapitalised itself.

The growing significance of these new cash sources “can result in unfamiliar market dynamics“, said BIS’ Claudio Borio. Dynamics such as the one where impossible moves such as repo rates exploding from 2% to 10% in seconds become a daily occurence.

So where does that leave us? Well, as the BIS concludes, since 17 September, “the Federal Reserve has taken various measures to supply more reserves and alleviate repo market pressures. These operations were expanded in scope to term repos (of two to six weeks) and increased in size and time horizon (at least through January 2020). The Federal Reserve further announced on 11 October the purchase of Treasury bills at an initial pace of $60 billion per month to offset the increase in non-reserve liabilities (eg the TGA). These ongoing operations have calmed markets.”

We have covered all these “mitigating events”, and the problem is that even though the Fed has now injected $208BN in liquidity via overnight and term repos, and $114BN via permanent T-Bill purchases, or POMO (i.e. “Not QE”), expanding the Fed’s balance sheet by $322 billion, the repo market still remains broken…

… and the world may find just how broken it is as soon as December 31, when the next repocalypse event is tentatively scheduled to strike. The big question is whether the world’s mega hedge funds, the Millenniums, the Citadels, the Point72s afraid they will lose access to the precious repo funding that permits them to lever up as much as 10x, will sharply deleverage ahead of this event, in the process sending risk prices tumbling and precipitating the next market crash.

But don’t take our word: here again is the top financial expert at the BIS, Claudio Borio, warning that that September’s dislocation suggests that such repo “events” are only just starting and the repo markets “may again find themselves in the eye of the storm should financial stress arise at some point”, a point which as the Fed recently revealed in its October FOMC Minutes could take place as soon as year-end.

end
Morgan Stanley not doing too good this year..the just fired 1500 bankers in year end cost  cutting
(zerohedge)

Morgan Stanley Firing 1,500 Bankers In Year-End Cost Cuts

This may be the longest expansion and bull market in US history; it’s also the only expansion that has seen thousands of bankers fired every single month as the stock market hit new all time highs every month.

Putting its pre-Christmas bonus pink slips where its mouth is, Morgan Stanley which in recent years has emerged the most bearish US-based bank, is firing 2% of its workforce, or roughly 1,500 bankers, “due to an uncertain global economic outlook” CNBC reported citing people with knowledge of the situation. Morgan Stanley had 60,532 employees as of September 30.

The job cuts at the investment bank, the world’s biggest equities trading firm and a leading mergers adviser, will hit technology and operations roles hardest, according to the report.

While Morgan Stanley has traditionally posted strong results, most recently reporting Q3 profit and revenue that beat analysts’ expectations, the company’s internal research has warned the US economy may hit a pothole in 2020. As a reminder, this is what the bank’s Chief US equity strategisty Michael Wilson wrote in his year-ahead outlook:

We expect that by April, the liquidity tailwind will fade and the market will focus more on fundamentals. Ironically, the outlook for the fundamentals is less certain for 2020 than for 2018/19 given more developed trade tensions, an election, and a weaker US economy.

Apparently it also meant that hundreds of Morgan Stanley bankers will get a pink slip instead of a year-end bonus.

 

Indeed, as CNBC notes, Wall Street firms often cut jobs towards the end of the year to avoid paying out bonuses. Morgan Stanley is the first known instance of this, but other firms will likely announce cuts as planning for 2020 continues.

Just don’t call it cutting costs – the technical term is “efficiency drive.” Just like QE4 is really NOT QE.

Morgan Stanley shares climbed 25% this year amid a broad rebound in bank shares. And since the top imperative for CEO James Gorman and the bank’s BOD is to keep the stock price rising in 2020 and repurchasing even more stock, it means that buybacks will take increasing precedence over full-time employees.

end

iv) Swamp commentaries)

DOJ Horowitz released his report on FBI conduct and find that there is clear abuse of the FISA process

(zerohedge)

DOJ Inspector General Releases Report On FBI Conduct, Finds “Clear Abuse” Of FISA Process

Justice Department Inspector General Michael Horowitz has released his report into the FBI’s investigation of the Trump campaign during the 2016 US election. The report concludes that despite nearly everybody investigating President Trump hating him – and that evidence was fabricated by at least one FBI attorney, and that they misrepresented Christopher Steele’s credentials, none of their bias ‘tainted’ the investigation, and the underlying process was sound.

That said, Horowitz faults the FBI for “significant inaccuracies and omissions” in their applications to secretly monitor Trump campaign adviser Carter Page, and agents “failed to meet the basic obligation” to ensure the applications were “scrupulously accurate.”

Brad Heath

@bradheath

RTRS – U.S. JUSTICE DEPARTMENT INSPECTOR GENERAL FINDS OPENING OF FBI PROBE INTO TRUMP CAMPAIGN ADVISERS WAS LEGITIMATE, PROPERLY AUTHORIZED -CONGRESSIONAL SOURCE

Brad Heath

@bradheath

RTRS – INSPECTOR GENERAL FINDS POLITICAL BIAS ON THE PART OF FBI EMPLOYEES DID NOT INFLUENCE DECISION TO OPEN FBI INVESTIGATION -SOURCE

Brad Heath

@bradheath

RTRS – FBI OVERSTATED ITS CONFIDENCE IN STEELE’S RELIABILITY, STEELE’S PAST CONTRIBUTIONS TO FBI INVESTIGATIONS, INSPECTOR GENERAL FINDS -SOURCE

Tom Fitton

@TomFitton

IG: 17 “errors” in Carter Page FISA warrants targeting @RealDonaldTrump. No reasonable explanations for the errors.

Attorney General William Barr, meanwhile, says that the report “now makes clear that the FBI launched an intrusive investigation of a U.S. presidential campaign on the thinnest of suspicions that, in my view, were insufficient to justify the steps taken.”

Jack Posobiec 🇺🇸

@JackPosobiec

AG BARR: “The evidence produced by the investigation was consistently exculpatory. Nevertheless, the investigation and surveillance was pushed forward for the duration of the campaign and deep into President Trump’s admin.”

Also in disagreement is US Attorney John Durham, who is running a concurrent investigation into the 2016 election for AG Barr.

“I have the utmost respect for the mission of the Office of Inspector General and the comprehensive work that went into the report prepared by Mr. Horowitz and his staff. However, our investigation is not limited to developing information from within component parts of the Justice Department.  Our investigation has included developing information from other persons and entitiesboth in the U.S. and outside of the U.S.  Based on the evidence collected to date, and while our investigation is ongoing last month we advised the Inspector General that we do not agree with some of the report’s conclusions as to predication and how the FBI case was opened. -US Attorney John Durham

Horowitz also found that the Steele dossier provided “probably cause” to spy on Carter Page, and that the FISA application “drew heavily…upon the Steele reporting to support the government’s position that Page” was a Russian agent.

Sean Davis

@seanmdav

The DOJ IG determined that the Steele dossier is what provided “probable cause” for the government to spy on Carter Page, and that the FISA application “drew heavily…upon the Steele reporting to support the government’s position that Page” was a Russian agent.

View image on Twitter

The FBI also used Steele to gather information on former National Security Adviser Michael Flynn.

Techno Fog@Techno_Fog

🚨

IG REPORT

The FBI used Christopher Steele to get information on General Flynn.

FBI promised Steele he would be paid “significantly” for this information.

cc @KerriKupecDOJ

View image on Twitter

Techno Fog@Techno_Fog

August 2016:

SSA1 (Pientka?) ran an op against Flynn under the guise of providing a defensive briefing.

View image on Twitter

Rep. Devin Nunes suggested that the DOJ IG report makes clear that Republican FISA abuse memo from February 2018 was accurate and actually understated the FISA abuse the dirty cops engaged in.

Devin Nunes

@DevinNunes

Looks like DOJ IG Report is clear that Republican FISA abuse memo from February 2018 was accurate and actually understated the FISA abuse the dirty cops engaged in. Time for FISA court to take action!

Mark Meadows

@RepMarkMeadows

And after reading this, it’s no wonder we’ve been seeing defensive leaks in the New York Times and CNN. And that the Democrats rushed to hold an impeachment hearing the same day.

It’s every bit as bad as advertised. And certainly worse than the media has been suggesting. https://twitter.com/RepMarkMeadows/status/1204092155440046081 

Mark Meadows

@RepMarkMeadows

I just got out of a nearly 2 hour briefing on the IG report.

It is deeply disturbing. Some former FBI and DOJ officials are about to have some serious explaining to do.

More details to come shortly.

Rep. Jim Jordan

@Jim_Jordan

We thought they spied on two Americans, we now know it was FOUR.

The Inspector General’s report confirms what many of us feared: James Comey’s FBI ignored guidelines and rules in spying on President Trump’s campaign in 2016. (1/4)

Rep. Jim Jordan

@Jim_Jordan

We now know that within one week of the investigation opening, the FBI was surveilling the campaign and four specific individuals associated with it. (2/4)

 

Something to keep in mind from Rolling Stone‘s Matt Taibbi: “conservative media will find it damning, while MSNBC/CNN types, if they cover it at all, will call it a nothingburger.”

Matt Taibbi

@mtaibbi

Have heard conflicting things about the report by Inspector General Horowitz that’s supposed to drop imminently. No matter what, a classic Hate Inc. situation: conservative media will find it damning, while MSNBC/CNN types, if they cover it at all, will call it a nothingburger

Kimberley Strassel

@KimStrassel

1) Don’t lose focus. Democrats and media scribes want to now claim IG report is about whether FBI was allowed to investigate Trump campaign. That’s a straw man. FBI has sweeping powers to investigate; nobody has ever denied that.

Kimberley Strassel

@KimStrassel

2) Horowitz was instead asked to investigate whether FBI abused its powers as part of its probe–namely if it abused the FISA process. Was it honest to court about its sources; did it include exculpatory evidence; did it doctor anything?

end

The IG report confirms that John Brennan lied through his teeth about the Steele dossier
(zerohedge)

IG Report Confirms Brennan Lied Through His Teeth About Steele Dossier

While the hotly anticipated IG ‘FISA’ report was perhaps the world’s loudest wrist-slap – resulting in just one criminal referral despite a mountain of evidence that the FBI’s top brass made serious errors while investigating the Trump campaign,The Federalist‘s Madeline Osburn points out that former CIA directorJohn Brennan was just caught in a liewhen he said they did not rely on the infamous Steele dossier for the Obama administration’s Intelligence Community Assessment (ICA).

The ICA report – thrown together over the course of a month, was used to inform President Barack Obama and then-President-elect Donald Trump in January, 2017 of Russian efforts to interfere in the 2016 US election.

And according to Monday’s FISA report, there was significant discussion on whether to include the Steele dossier in the main body of the ICA report – with former FBI Deputy Director Andrew McCabe saying that “he felt strongly that the Steele election reporting belonged in the body of the ICA, because he feared that placing it in an appendix was ‘tacking it on’ in a way that would ‘minimiz[e]’ the information and prevent it from being properly considered.”

 

Ultimately, the ICA included a short summary and assessment of the dossier, which was incorporated in an appendix. “In the appendix, the intelligence agencies explained that there was ‘only limited corroboration of the source’s reporting’ and that Steele’s election reports were not used ‘to reach analytic conclusions of the CIA/FBI/NSA assessment,’” the IG report states. –The Federalist

Brennan’s lie

Several months after the ICA report was released, on May 23, 2017, Brennan told the House Intelligence Committee that the CIA did not rely on the Steele dossier for the ICA report “in any way.”

Mr. Gowdy: Do you know if the Bureau ever relied on the Steele dossier as any — as part of any court filings, applications, petitions, pleadings?

Mr. Brennan: I have no awareness.

Mr. Gowdy: Did the CIA rely on it?

Mr. Brennan: No.

Mr. Gowdy: Why not?

Mr. Brennan: Because we — we didn’t. It wasn’t part of the corpus of intelligence information that we had. It was not in any way used as a basis for the Intelligence Community assessment that was done. It was — it was not.

(via The Federalist)

 

Except, on Page 179 of the FISA report we find that former FBI Director James Comey told investigators that he remembers being “part of a conversation, maybe more than one conversation, where the topic was how the [Steele] reporting would be integrated, if at all, into the IC assessment.”

Comey added that Brennan and other officials argued that the Steele dossier was found credible by intelligence community analysts, and that while they did not want to include it in the main body of the ICA, “they thought it was important enough and consistent enough that it ought to be part of the package in some way, and so they had come up with this idea to make an [appendix].

end

Jeffrey Epstein  background

Watson describes Epstein has a Mossad agent brought in by Robert Maxwell, Ghislaine Maxwell’s father. Epstein received his entire wealth through extortion

(Paul Watson)

Authored by Paul Joseph Watson via Summit News,

Jeffrey Epstein was a Mossad asset who was used by Israeli intelligence to blackmail American politicians, according to a former Israeli spy.

Ari Ben-Menashe, a former Israeli spy and alleged “handler” of Robert Maxwell, told the authors of a new book, Epstein: Dead Men Tell No Tales, that Epstein ran a “complex intelligence operation” at the behest of Mossad.

Believing that Epstein planned to marry his daughter, Maxwell introduced him and Ghislaine Maxwell to Ben-Menashe’s Mossad circle.

“Maxwell sort of started liking him, and my theory is that Maxwell felt that this guy is going for his daughter,” Ben-Menashe said.

“He felt that he could bless him with some work and help him out in like a paternal [way].”

Israeli intelligence bosses gave the green light and Epstein then became a Mossad asset.

“They were agents of the Israeli Intelligence Services,” said Ben-Menashe.

When it became clear that Epstein wasn’t very competent at doing much else, his primary role became “blackmailing American and other political figures.”

 

“Mr. Epstein was the simple idiot who was going around providing girls to all kinds of politicians in the United States,” said Ben-Menashe.

“See, fucking around is not a crime. It could be embarrassing, but it’s not a crime. But fucking a fourteen-year-old girl is a crime. And he was taking photos of politicians fucking fourteen-year-old girls — if you want to get it straight. They would just blackmail people, they would just blackmail people like that.”

There’s also a Mossad connection to a different kind of sex offender; Harvey Weinstein.

Weinstein reportedly hired ex-Mossad agents to suppress allegations against him. Working for an Israeli firm called Black Cube, these agents pressured witnesses and tried to intimidate journalist Ronan Farrow in order to “bury the truth” about Weinstein’s activity.

end

The truth behind Ukraine-Gate..Ukraine was the origin of the Trump-Russia collusion hoax (Russiagate)

(Sellin/AmericanThinker.com)

Ukraine Was The Origin Of The Trump-Russia Collusion Hoax

Authored by Lawrence Sellin via AmericanThinker.com,

December 2015 was a pivotal month in many respects…

During the first week of December 2015, Donald Trump began to establish a substantial lead over his Republican primary opponents.

Vice President Joseph Biden traveled to Ukraine to announce, on December 7th, a $190 million program to “fight corruption in law enforcement and reform the justice sector,” but behind the scenes explicitly linked a $1 billion loan guarantee to the firing of Ukrainian prosecutor Viktor Shokin, who had been investigating the energy company Burisma, which employed Biden’s son Hunter.

On December 9, 2015, the reported whistleblower Eric Ciaramella held a meeting in Room 236 of the Eisenhower Executive Office Building with Daria Kaleniukexecutive director of the Ukrainian Anti-Corruption Action Center, which was 59%-funded by Barack Obama’s State Department and the International Renaissance Foundation, a George Soros organization.

Also attending that meeting was Catherine Newcombe,attorney in the Criminal Division, Office of Overseas Prosecutorial Development, with the U.S. Department of Justice, where, among other duties, she oversaw the Department’s legal assistance programs to Ukraine.

By December 2015, Paul Manafort was undoubtedly considering approaching the Trump campaign to rejuvenate his U.S. political bona fides and mitigate the legal and financial difficulties he was experiencing at the time.

From the beginning of his association with the Trump campaign, Roger Stone, a long-time Manafort partner, made a strong case to Trump to bring in Manafort, who would officially connect to the campaign immediately after the February 1, 2016 Iowa caucuses.

Based on events occurring during the same period, were Obama Deep State operatives aware of Manafort’s intent and already intending to use his past questionable practices and links to Russia against Trump?

 

Such awareness of Manafort’s plans could have been obtained either through FBI surveillance, which began in 2014 and ended in early 2016, or through information provided by Manafort associates, for example, Ukrainian businessman Konstantin Kilimnik, who worked for Manafort and was a FBI and Department of State asset, not a Russian agent as later painted by the Mueller investigation.

According to White House visitor logson January 19, 2016, Eric Ciaramella chaired a meeting of FBI, Department of Justice and Department of State personnel, which had two main objectives:

  1. To coerce the Ukrainians to drop the Burisma probe, which involved Vice President Joseph Biden’s son Hunter, and allow the FBI to take it over the investigation.
  2. To reopen a closed 2014 FBI investigation that focused heavily on GOP lobbyist Paul Manafort, whose firm long had been tied to Trump through his partner and Trump pal, Roger Stone.

That is, contain the investigation of Biden’s son and ramp up the investigation of Paul Manafort.

Again, according to White House logs, the attendees at the January 19, 2016 meeting in Room 230A of the Eisenhower Executive Office Building were:

  • Eric Ciaramella – National Security Council Director for Ukraine
  • Liz Zentos – National Security Council Director for Eastern Europe
  • David G. Sakvarelidze – Deputy General Prosecutor of Ukraine
  • Anna E. Iemelianova (Yemelianova) – Legal Specialist, US Embassy Kyiv and US Department of Justice’s Anti-Corruption Program.
  • Nazar A. Kholodnitsky, Ukraine’s chief anti-corruption prosecutor
  • Catherine L. Newcombe – attorney in the Criminal Division, Office of Overseas Prosecutorial Development, with the U.S. Department of Justice
  • Svitlana V. Pardus – Operations, Department of Justice, U.S. Embassy, Ukraine.
  • Artem S. Sytnyk  – Director of the National Anti-corruption Bureau of Ukraine
  • Andriy G. Telizhenko, political officer in the Ukrainian Embassy in Washington DC
  • Jeffrey W. Cole – Resident Legal Advisor at U.S. Embassy Ukraine, presumed to be FBI

Just two weeks after that meeting, on February 2, 2016, according to White House logs, Eric Ciaramella chaired a meeting in Room 374 of the Eisenhower Executive Office, which seems to be a planning session to re-open an investigation of Paul Manafort (Note: one of the crimes of which Manafort was accused was money laundering, an area covered by the Department of the Treasury). The attendees were:

  • Jose Borrayo – Acting Section Chief, Office of Special Measures, U.S. Department of the Treasury, Financial Crimes Enforcement Network
  • Julia Friedlander – Senior Policy Advisor for Europe, Office of Terrorist Financing and Financial Crimes, U.S. Department of the Treasury
  • Michael Lieberman – Deputy Assistant Secretary, Terrorist Financing and Financial Crimes, U.S. Department of the Treasury
  • Scott Rembrandt – Anti-Money Laundering Task Force, Assistant Director/Director, Office of Strategic Policy, Department of the Treasury
  • Justin Rowland – Special Agent (financial crimes), Federal Bureau of Investigation

It appears that Paul Manafort became a vehicle by which the Obama Deep State operatives could link Trump to nefarious activities involving Russians, which eventually evolved into the Trump-Russia collusion hoax.

Remember, the key claim of the follow-up Steele dossier, the centerpiece of the Mueller investigation, was that Trump campaign manager Paul Manafort was the focal point of a “well-developed conspiracy between them [the Trump campaign] and the Russian leadership.”

Nellie Ohr, Fusion GPS employee and wife of Department of Justice official Bruce Ohr, not only worked with Christopher Steele on the so-called Trump dossier, but, in May 2016, was the conduit of information to her husband and two Department of Justice prosecutors of the existence of the “black ledger” documents that contributed to Manafort’s prosecution.

Bruce Ohr and Steele attempted to get dirt on Manafort from a Russian oligarch, Oleg Deripaska, efforts that eventually led to a September 2016 meeting in which the FBI asked Deripaska if he could provide information to prove that Manafort was helping Trump collude with Russia.

The surveillance and entrapment attempts of Paul Manafort, Carter Page, George Papadopoulos and others were designed to collect evidence about Trump without formally documenting that Trump was the target.

After the election, to cover their tracks, James Comey, representing the FBI and the Department of Justice, misleadingly told Trump that the investigation was about Russia and a few stray people in his campaign, but they assured him he personally was not under investigation.

They lied.

Donald Trump always was, and still is, the target of the Deep State, the left-wing media and their Democrat Party collaborators.

end
CNN ratings at a 3 yr low
(zerohedge)

CNN Ratings Drop To Three-Year Low Amid Constant Impeachment Coverage

It has been over two months since House Speaker Nancy Pelosi announced the impeachment inquiry of President Trump, and CNN has been running non-stop coverage of all the latest impeachment developments. In retrospect, that may not have been the best idea: with round the clock coverage, viewership of the rabidly partisan, far-left media outlet has actually tumbled to three-year lows, reported Nielsen Media Research.

Nielsen reported that CNN recorded its lowest prime time ratings in nearly three years during the week of November 25. Even more embarrassing for Jerry Zucker, Fox News recorded higher ratings than MSNBC and CNN combined. 

Fox News recorded 2.2 million viewers in the primetime hours of 9-11 p.m. ET from Nov. 25 through Dec. 1; MSNBC saw around 1.3 million, while CNN averaged about 643,000 viewers over the same period. It was CNN’s worst performance in nearly three years and the liberal network’s worst turnout among the key demographic of adults age 25-54 in over five years.

Primetime Viewers

  • Fox News: 2.2 million
  • MSNBC: 1.3 million
  • CNN: 643,000

Fox News has dominated the cable news arena for the 47th consecutive week, averaging a little over 1.3 million viewers.

Total Day Viewers

  • Fox News: 1.33 million
  • MSNBC: 781,000
  • CNN: 539,000

As CNN plumbed historic lows, its conservative foil continued to enjoy strong viewership, as episodes of “Hannity,” “Tucker Carlson Tonight,” “The Ingraham Angle,” “The Story with Martha MacCallum” and “Special Report” with Bret Baier accounted for 15 of the 30 most-watched telecasts across all of cable during the holiday weekend.

Is CNN’s Trump derangement syndrome starting to bore most Americans, even liberals? Consider that the network’s special town hall event with House Speaker Nancy Pelosi on the day she announced that articles of impeachment against President Trump were being drafted only averaged 1.6 million viewers and 410,000 in the demo on Thursday night, well behind both Fox News and MSNBC in both categories.

The American people, at least those who still watch cable TV, are increasingly ditching “objective”, “imparial” mainstream media outlets and either tuning out or moving to conservative outlets, in a time when House Democrats have been focused on just one thing: not how to govern the nation, but merely focusing all their energy on impeaching the president. It appears, however, that the American people are tired of this farce and are desperate to move on. So far very few democrats have gotten the memo.

end

“Undeniable Evidence”: Explosive Classified Docs Reveal Afghan War Mass Deception

In what’s already being hailed as a defining and explosive “Pentagon papers” moment, a cache of previously classified documents obtained by The Washington Postshow top Pentagon leaders continuously lied to the public about the “progress” of the now eighteen-year long Afghan war.

The some 2,000 pages of notes from interviews of senior officials who have shaped US strategy in Afghanistan confirm that “senior US officials failed to tell the truth about the war in Afghanistan throughout the 18-year campaign, making rosy pronouncements they knew to be false… hiding unmistakable evidence the war had become unwinnable,” according to the bombshell Post report.

 

Pentagon file image: Getty.

The internal interviews and statements were unearthed via Freedom of Information Act request and span the Bush, Obama and Trump administrations. The trove further confirms that US leaders knew vast amounts of money was being wasted in a futile attempt to “Westernize the nation”.

Watchdog groups commonly estimate total US spending on the war has hit $1 trillion by end of 2019. More importantly, America’s ‘endless war’ has cost at least 2,351 American lives and over 20,000 wounded.

The internal Pentagon project conducted by the Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR) had sought to get as honest assessment as possible as to the status of America’s longest running quagmire panning multiple administrations. It was to be a classified “Lessons Learned” assessment of sorts to prevent future missteps.

“What did we get for this $1tn effort? Was it worth $1 trillion?” one retired Navy SEAL who had advised the Bush and Obama administrations observed in one of the documents. “After the killing of Osama bin Laden, I said that Osama was probably laughing in his watery grave considering how much we have spent on Afghanistan.”

Caitlin Johnstone ⏳@caitoz

Here’s more undeniable evidence that you were lied to about the war in Afghanistan, for anyone who needed more undeniable evidence that you were lied to about the war in Afghanistan.https://www.washingtonpost.com/graphics/2019/investigations/afghanistan-papers/afghanistan-war-confidential-documents/ 

Confidential documents reveal U.S. officials failed to tell the truth about the war in Afghanistan

For nearly two decades of war in Afghanistan, U.S. leaders have sounded a constant refrain: We are making progress. They were not, documents show, and they knew it.

washingtonpost.com

 

Another top official, former White House Afghan war czar Douglas Lute under Bush and Obama, confessed, “We were devoid of a fundamental understanding of Afghanistan – we didn’t know what we were doing.” He added that “we didn’t have the foggiest notion of what we were undertaking” after the 2001 invasion.

“If the American people knew the magnitude of this dysfunction … 2,400 lives lost,” he added.

Two major consistent themes from the documents are

  1. the manipulation on a mass scale of statistics fed to the public in order to hide the true disastrous nature of the war; and…
  2. US leaders “turning a blind eye” to large scale theft of US tax payer dollars by corrupt Afghan officials.

US aid was looted “with impunity” according to the released documents, and provide undeniable evidence that top defense officials knew years of rosy public statements were a mountain of lies.

Joshua Landis

@joshua_landis

Almost hard to get infuriated about the blatant spinning by government agencies anymore. The effort to cover up the failures of US foreign policy whether in Afghanistan, Iraq, Libya, Syria or Yemen has worn us down. Hard to remember what honesty is. https://twitter.com/jimsciutto/status/1204007012159410177 

Jim Sciutto

@jimsciutto

Explosive – a Pentagon Papers moment: “senior US officials failed to tell the truth about the war in Afghanistan throughout the 18-year campaign, making rosy pronouncements they knew to be false..hiding unmistakable evidence the war had become unwinnable” https://www.washingtonpost.com/graphics/2019/investigations/afghanistan-papers/afghanistan-war-confidential-documents/ 

“Every data point was altered to present the best picture possible,” Bob Crowley, an Army colonel and senior counterinsurgency adviser to U.S. military commanders testified.

Over 400 people close to the decision-making process were interviewed as part of the internal DoD investigation; however among those 366 names were redacted, given that as more damning testimony was given, the Inspector General deemed they should be treated as ‘whistleblowers’ and informants.

But for all the hand-wringing and outrage Monday’s WaPo bombshell will unleash this week, it must be remembered that the establishment in both parties have consistently pushed to stay at war, not to mention going to war in the first place.

As independent journalist David Mizner observes of the new ‘Afghan Papers’ it remains that “US politicians lie to stay at war, every time. The real crime was going to war in the first place  and almost no US politicians, pundits, and or journos with large platforms opposed the war.”

end

Joe Biden’s ‘Temper Was Overflowing’ After Ukrainian Prosecutor Seized Burisma Assets: Report

The Ukrainian prosecutor Joe Biden got fired by threatening to withhold vital US financial aid says that the former Vice President was outraged after Ukrainian authorities seized the assets of Burisma – a natural gas firm owned by a notoriously corrupt oligarch who hired Hunter Biden to sit on its board.

The fired prosecutor, Victor Shokin, sat down with OAN News and Trump attorney Rudy Giuliani to explain what happened when former Ukrainian president Petro Poroshenko told him to stop investigating Burisma.

“Yes, that’s what he told me. He came to me and said, “you are a patriot of Ukraine, we need this billion dollars. We are at war, and if you are a patriot you will close this case.“”

 

“My conversation with Poroshenko was in a phone call,” Shokin continued. “It was after we started seizing Burisma assets in Ukraine when Poroshenko called me and said “listen, this all has to stop already. Joe Biden’s temper is overflowing. This seizing of Burisma assets was the last straw.””

Watch:

In January, Shokin told Giuliani and others that he was removed at Biden’s request  while he was investigating Burisma owner Mykola Zlochevsky, the former Minister of Ecology and Natural Resources who. According to Shokin:

  1. Mr. Zlochevsky was laundering money
  2. Obtained assets by corrupt acts bribery
  3. Mr. Zlochevsky removed approximately twenty three million US dollars out of Ukraine without permission
  4. While seated as the Minister he approved two addition entities to receive permits for gas exploration
  5. Mr. Zlochevsky was the owner of two secret companies that were part of Burisma Holdings and gave those companies permits which made it possible for him to profit while he was the sitting Minister.

Shokin’s successor, Yuriy Lutsenko, confirmed Shokin’s account, said Shokin was trustworthy, and then went further to explain how Ukraine sandbags high-profile investigations such as Burisma and Zlochevsky.

 

“Mr. Lutsenko went on to explain that there is a unit called Specialized Anticorruption Prosecutor’s Office (SAP) which has under its purview National Anticorruption Bureau Ukraine (NABU) which investigates corruption cases that involved public figures from Mayors upward. He stated that the current US Ambassador protects SAP and NABU,” adding “His office has absolutely no control over SAP or NABU and can’t even ask what they are working on however they fall under his “control.”

Of note, NABU was established in October 2014 “by Mr. George Kent who was the Deputy Chief to the Mission in Ukraine.”

Lutsenko also explained that a $900,000 payment was made to Biden’s consulting firm, Rosemont Seneca Partners LLC for consulting fees, and was for “services rendered for lobbying by Joe Biden,” according to the report.

 

end

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

U.S. banks’ reluctance to lend cash may have caused repo shock: BIS

The unwillingness of the top four U.S. banks to lend cash combined with a burst of demand from hedge funds for secured funding could explain a recent spike in U.S. money market rates, the Bank for International Settlements said…That rush for short-dated secured funding was exacerbated by hedge funds who had ramped up their Treasury repos to fund arbitrage trades between cash bonds and derivatives… [Ergo, per the BIS, Powell is bailing out/aiding & abetting hedge fund speculation.]

https:ww.reuters.com/article/us-markets-bis-fx-idUSKBN1YC0IQ

On page 31 of Nadler’s Impeachment report, the House Judiciary Committee Chair suggests that Trump has committed no crimes: “It is occasionally suggested that Presidents can be impeached only if they have committed crimes. That position was rejected in President Nixon’s case, and then rejected again in President Clinton’s, and should be rejected once more.”

Bereft of evidence of a crime to impeach Trump, Nadler and Schiff proffered a new reason on Sunday morning news shows.

Nadler Says Without Impeachment, Trump May Try to ‘Rig’ Election

On NBC’s “Meet the Press,” Representative Jerrold Nadler, chairman of the House Judiciary Committee, said it was a “matter of urgency” to deal with the president’s pattern of behavior ahead of the next election. On CNN’s State of the Union, Nadler said Trump may try to “rig” the 2020 vote

    His counterpart on the House Intelligence Committee, Representative Adam Schiff, said on CBS’s “Face the Nation” that “we simply can’t wait for an election that the president is seeking to prejudice with foreign intervention.”… [You can’t make this up!]

https://www.bloomberg.com/news/articles/2019-12-08/nadler-says-without-impeachment-trump-may-try-to-rig-election

GOP Senators Seek Interview with Ex-DNC Contractor Who Worked with Ukrainians in 2016

The Republican chairmen of three Senate committees are seeking records from and interviews with a former DNC contractor and a former Ukrainian diplomatic official to determine whether there was any coordination between the Ukrainian government and Democrats in the 2016 election, an allegation Democrats have dismissed as a conspiracy theory.

    Sens. Chuck Grassley, Ron Johnson and Lindsey Graham said Friday that they are requesting the records from Alexandra Chalupa, the former DNC contractor, and Andrii Telizkhenko, a former political officer who worked in the Ukrainian embassy… Chalupa met throughout 2016 with Ukrainian embassy officials, and sought to trade information related to Manafort…

    Nellie Ohr, a former contractor for Fusion GPS, told lawmakers in an Oct. 18, 2018, interview that Leshchenko was a source of some kind for Fusion, which commissioned the infamous Steele dossier…

https://dailycaller.com/2019/12/06/republicans-alexandra-chalupa-ukraine/

George Papadopoulos @GeorgePapa19: If you think Biden is coming unhinged due to his shady work in Ukraine, just wait to hear what he was trying to extort out of officials in Cyprus. [over pipeline?]

On Fox with Maria Bartiromo Sunday morning, Sen. Lindsey Graham said he will end an impeachment trail ASAP.  Graham said as soon as he has 51 votes, he will end the trial.

https://video.foxnews.com/v/6114034395001#sp=show-clips

@RoscoeBDavis1: Lindsey Graham wants to fast track the Senate trial so they don’t dig too deep into Ukraine and find his dirt with McCain, and all the under the table weapons kickbacks.

Devin Nunes on phone record release [by Schiff]: ‘We’re definitely going to take legal action’

House Intelligence Committee Ranking Member Devin Nunes, R-Calif., said Saturday that he would be pursuing legal action after his phone records were exposed in the release of the Committee’s impeachment inquiry report…

    Nunes told the “Friends: Weekend” hosts that, upon review, his phone records do not match what Committee Chairman Adam Schiff, D-Calif., and House Democrats put in the report

   “I believe I am the first member of Congress ever to have [my] phone records exposed like this,” Nunes stated. “We’re definitely going to take legal action.”  “We need to get to court to try to stop that from happening again,” he concluded.

https://www.foxnews.com/media/devin-nunes-phone-records-adam-schiff-house-intelligence-report-impeachment-inquiry

Senator Rand Paul @RandPaul: Hmmm….15 Saudis attack us on 9/11. The Saudi government kills a US journalist. A Saudi pilot in training kills 3 of our soldiers. Can anyone spot the common thread? My take:  It’s way past time to quit arming and training the Saudis!

Well that is all for today

I will see you Tuesday night.

 

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