GOLD:$1474.50 DOWN $2.00 (COMEX TO COMEX CLOSING

Silver:$16.99 DOWN 3 CENTS (COMEX TO COMEX CLOSING) :

Closing access prices:

Gold : $1475.20

silver: $17.02

COMEX DATA

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

today RECEIVING: 13/365

EXCHANGE: COMEX
CONTRACT: DECEMBER 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,474.600000000 USD
INTENT DATE: 12/17/2019 DELIVERY DATE: 12/19/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
118 H MACQUARIE FUT 156
435 H SCOTIA CAPITAL 95
657 C MORGAN STANLEY 25
661 C JP MORGAN 16 13
685 C RJ OBRIEN 5
737 C ADVANTAGE 4 21
800 C MAREX SPEC 15 49
880 H CITIGROUP 330
905 C ADM 1
____________________________________________________________________________________________

TOTAL: 365 365
MONTH TO DATE: 13,803

we are coming very close to a commercial failure!!

NUMBER OF NOTICES FILED TODAY FOR DEC CONTRACT: 365 NOTICE(S) FOR 36,500 OZ (1.1353 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR: 13,803 NOTICES FOR 1,380300 OZ (42.933 TONNES)

SILVER

FOR DEC

56 NOTICE(S) FILED TODAY FOR 280,000 OZ/

total number of notices filed so far this month: 3545 for 17,725,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE : $ 6583 DOWN 42

Bitcoin: FINAL EVENING TRADE: $ 7165 UP 509

Let us have a look at the data for today

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IN SILVER THE COMEX OI ROSE BY A GOOD SIZED 499 CONTRACTS FROM 205,803 UP TO 206,302 DESPITE THE 5 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 STRONG SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:,

; FEB 0; MARCH: 1841 AND ZERO FOR ALL OTHER MONTHS AND THEREFORE TOTAL ISSUANCE 1841 CONTRACTS. WITH THE TRANSFER OF 1841 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 1841 EFP CONTRACTS TRANSLATES INTO 9.205 MILLION OZ ACCOMPANYING:

1.THE 5 CENT LOSS IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV: A HUGE 7.440 MILLION OZ STANDING AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ STANDING FOR JULY

10.025 MILLION OZ INITIAL STANDING IN AUGUST.

43.030 MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32 MILLION OZ INITIALLY STANDING IN OCT

2.630 MILLION OZ STANDING FOR NOV.

19.240 MILLION OZ INITIALLY STANDING IN DEC

YESTERDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO CONTAIN SILVER’S PRICE…AND THEY WERE SUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT FELL 5 CENTS).. AND, OUR OFFICIAL SECTOR/BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE SOME SILVER LONGS AS THE TOTAL GAIN IN OI ON BOTH EXCHANGES TOTALED 2340 CONTRACTS. OR 11.70 MILLION OZ…..

ALSO KEEP IN MIND THAT THE SPREADERS HAVE ALREADY STARTED THEIR INCREASE OF OI CONTRACTS IN SILVER. AND THAT IS PROBABLY THE REASON FOR THE STRONG GAIN IN COMEX OI.

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

23,113 CONTRACTS (FOR 15 TRADING DAYS TOTAL 23,113 CONTRACTS) OR 115.57 MILLION OZ: (AVERAGE PER DAY: 1540 CONTRACTS OR 7.704 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER: SO FAR THIS MONTH OF DEC: 115.57 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 16.51% 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: 2,205.13 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 GOOD SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 499, DESPITE THE 5 CENT LOSS IN SILVER PRICING AT THE COMEX /YESTERDAY… THE CME NOTIFIED US THAT WE HAD A STRONG SIZED EFP ISSUANCE OF 1841 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 STRONG SIZED: 2340 TOTAL OI CONTRACTS ON THE TWO EXCHANGES:

i.e 1841 OPEN INTEREST CONTRACTS HEADED FOR LONDON (EFP’s) TOGETHER WITH INCREASE OF 499 OI COMEX CONTRACTS. AND ALL OF THIS STRONG DEMAND HAPPENED WITH A 5 CENT LOSS IN PRICE OF SILVER AND A CLOSING PRICE OF $17.02 WITH RESPECT TO TUESDAY’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. 1.032 BILLION OZ TO BE EXACT or 147% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT DEC MONTH/ THEY FILED AT THE COMEX: 56 NOTICE(S) FOR 280,000 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 $14.70

ON THE DEMAND SIDE WE HAVE THE FOLLOWING:

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: 19.240 MILLION OZ
THE RECORD WAS SET IN AUGUST 22/2018: 244,196 CONTRACTS, WITH A SILVER PRICE OF $14.78//.
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 ROSE BY A STRONG 5609 CONTRACTS, AND MOVING VERY CLOSE TO THAT NEW ALL TIME RECORD OF 719,211 (SET NOV 20/2019). THE NEW OI RESTS AT 716,987. THE RISE IN COMEX OI OCCURRED WITH A TINY $0.30 PRICING GAIN ACCOMPANYING COMEX GOLD TRADING// TUESDAY// /

THE CME RELEASED THE DATA FOR EFP ISSUANCE AND IT TOTALED A GOOD SIZED 4330 CONTRACTS:

DEC 2019: 0 CONTRACTS, FEB> 4130 CONTRACTS APRIL: 200 AND ALL OTHER MONTHS ZERO. The NEW COMEX OI for the gold complex rests at 716,987,,. 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 VERY STRONG SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 9939 CONTRACTS: 5609 CONTRACTS INCREASED AT THE COMEX AND 4330 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS TOTAL OI GAIN OF 9939 CONTRACTS OR 993,900 OZ OR 30.91 TONNES. TUESDAY WE HAD A GAIN OF $0.30 IN GOLD TRADING….

AND WITH THAT GAIN IN PRICE, WE HAD A VERY STRONG GAIN IN GOLD TONNAGE OF 30.91 TONNES!!!!!! THE BANKERS/OFFICIAL SECTOR WERE SUPPLYING INFINITE SUPPLIES OF SHORT GOLD COMEX PAPER WITH RECKLESS ABANDON. THE BANKERS WERE UNSUCCESSFUL IN THEIR ATTEMPT TO LOWER GOLD’S PRICE (UP $0.30) . THEY WERE TOTALLY UNSUCCESSFUL IN THEIR ATTEMPT TO FLEECE GOLD LONGS FROM THE GOLD ARENA AS WE HAD A VERY STRONG GAIN IN OPEN INTEREST ON OUR TWO EXCHANGES (30.91 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 : 106,633 CONTRACTS OR 10,663,300 oz OR 331.67` TONNES (15 TRADING DAY AND THUS AVERAGING: 7108 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS : THIS MONTH IN 15 TRADING DAYS IN TONNES: 331.67 TONNES

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

THUS EFP TRANSFERS REPRESENTS 331.67/3550 x 100% TONNES =9.34% 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: 6,057.78 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 MASSE CONSPIRACY TO DEFRAUD AS WE NOW WITNESS A MONSTROUS TOTAL EFP’S ISSUANCE AS IT HEADS INTO THE STRATOSPHERE.

Result: A STRONG SIZED INCREASE IN OI AT THE COMEX OF 5609 WITH THE PRICING GAIN THAT GOLD UNDERTOOK YESTERDAY($0.30)) //.WE ALSO HAD A GOOD SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 4330 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 4330 EFP CONTRACTS ISSUED, WE HAD A VERY STRONG SIZED GAIN OF 9939 CONTRACTS IN TOTAL OPEN INTEREST ON THE TWO EXCHANGES:

4340 CONTRACTS MOVE TO LONDON AND 5,609 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 30.91 TONNES). ..AND THIS STRONG INCREASE OF DEMAND OCCURRED WITH A TINY GAIN IN PRICE OF $0.30 WITH RESPECT TO TUESDAY’S TRADING AT THE COMEX.

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

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

GLD...

WITH GOLD DOWN $2.00 TODAY//(COMEX-TO COMEX)

THE CROOKS AGAIN RAID THE GLD FOR PAPER GOLD:

A HUGE WITHDRAWAL OF 5.56 TONNES FROM THE GLD//

DEC 18/2019/Inventory rests tonight at 880.66 tonnes

SLV/

WITH SILVER DOWN 3 CENTS TODAY:

DEC 18/INVENTORY RESTS AT 364.858 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 GOOD SIZED 499 CONTRACTS from 205,879 UP TO 206,302 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 1841

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

FOR FEB. 0; FOR MAR 1841: AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1841 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 499 CONTRACTS TO THE 1841 OI TRANSFERRED TO LONDON THROUGH EFP’S, WE OBTAIN A STRONG SIZED GAIN OF 2340 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 11.70 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: 19.240 MILLION OZ//

RESULT: A GOOD SIZED INCREASE IN SILVER OI AT THE COMEX DESPITE THE 5 CENT LOSS IN PRICING THAT SILVER UNDERTOOK IN PRICING// TUESDAY. WE ALSO HAD A STRONG SIZED 1841 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

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

(report Harvey)

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)WEDNESDAY MORNING/ TUESDAY NIGHT:

SHANGHAI CLOSED DOWN 5.38 POINTS OR 0.18% //Hang Sang CLOSED UP 40.50 POINTS OR 0.15% /The Nikkei closed DOWN 131.69 POINTS OR 0.55%//Australia’s all ordinaires CLOSED UP .09%

/Chinese yuan (ONSHORE) closed DOWN at 6.9979 /Oil UP TO 60.48 dollars per barrel for WTI and 65.82 for Brent. Stocks in Europe OPENED MIXED// ONSHORE YUAN CLOSED DOWN // LAST AT 6.9979 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED DOWN ON THE DOLLAR AT 7.0003 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING WEAKER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING WEAKER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP RAISED RATES TO 25%

3A//NORTH KOREA/ SOUTH KOREA

3b) REPORT ON JAPAN

3C CHINA

i)CHINA

A must read…the big hole in the Chinese trade agreement not discussed: contracts cannot be encrypted.

What a joke

((Gordon Chang/Gatestone)

ii)CHINA

China’s EV sales plunge in November as the global auto market continues in a tailspin

(zerohedge)

4/EUROPEAN AFFAIRS

Finally we have a government condemning the anti _Israel boycott (BDS movement) by stating it is anti semitic.

(Kern/Gatestone)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)TURKEY/USA

Erdogan continue s to annoy the USA..now Erdogan threatens to recognize the genocide of Native Americans. Trump is very angry and he will no doubt let the Turkish lira sink

(zerohedge)

ii)Turkey/Hamas/Israel

The idiot, Erdogan now allows Hamas to plot attacks on Israelis from Istanbul. This will lead to attacks on Turkey from Israel

(Almasdarnews.com)

6.Global Issues

If there is anybody who knows what is going on in the global economy it is Fed Ex. Here the CEO states that the stock market is very bullish. However with respect to the Industrial economy he does not see any growth at all worldwide..

(zerohedge)

7. OIL ISSUES

8 EMERGING MARKET ISSUES

9. PHYSICAL MARKETS

i)This is a must read..the Auditor for gold lied to Congress telling them that seals have never been broken. This will explain why China has accumulated north of 20,000 tonnes..the entire uSA gold supply at Fort Knox has been compromised.

the paper in full is below…

(Jan Nieuwenhuijs (Koos Jansen))

ii)We thought that the BIS is removing itself from the gold swap business. I guess we were wrong. Last month they doubled their swaps and thus the reason for keeping a lid of the gold price.

Such crooks

(Robert Labourne/GATA)

iii)USA government is again asking for a stay on the civil action while they continue with their tiny criminal spoofing case. The real crime is many times that of spoofing

(Nicola/Finance Needs)

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

A)This will hurt first quarter GDP as Boeing 737 Max production is halted

(zerohedge)

B)A good one… Fed President of Boston Rosengren, issues a shocking admission: we need to be pretty focused on asset prices and not just inflation..

Bubbles galore..

(ZEROHEDGE)

iv) Swamp commentaries)

a)Wall Street Journal Editorial Board slams the FISA circus as to why no individuals have been held accountable

(zerohedge)

b)A good commentary by Michael Snyder as he describes how the Democrats strategy on impeaching trump is backfiring

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

LET US BEGIN:

Let us head over to the comex:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A STRONG SIZED 5609 CONTRACTS TO A LEVEL OF 716,987 DESPITE THE SMALL GAIN OF $0.30 IN GOLD PRICING WITH RESPECT TO TUESDAY’S // COMEX TRADING)

WE ARE NOW IN THE ACTIVE DELIVERY MONTH OF DEC.. THE CME REPORTS THAT THE BANKERS ISSUED A GOOD SIZED TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 4330 EFP CONTRACTS WERE ISSUED:

DEC: 00 ; FEB: 4130 AND APRIL: 200 ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 4330 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: 9939 TOTAL CONTRACTS IN THAT 4340 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A STRONG SIZED 5609 COMEX CONTRACTS.

THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD. THE BANKERS WERE UNSUCCESSFUL IN LOWERING GOLD’S PRICE //// (IT ROSE BY $0.40). AND THEY WERE MOST DEFINITELY UNSUCCESSFUL IN FLEECING ANY LONGS AS WE GAINED 9939 CONTRACTS ON OUR TWO EXCHANGES:

NET GAIN ON THE TWO EXCHANGES :: 9939 CONTRACTS OR 993900 OZ OR 30.91 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 746 open interest stand for a GAIN of 107 contracts. We had 80 notices so we GAINED a whopping 187 contracts or an additional 18700 OZ will stand for delivery at the comex as they will try their luck finding physical metal on the this side of the pond as they refused to morph into London based forwards and well as negating a fiat bonus…queue jumping resumes with a vengeance.

we had: 365 notice(s) filed upon for 36,500 oz of gold at the comex.

The next non active contract month after Dec, is January and it saw its OI DECREASE by 1696 contracts DOWN to 53354 which is STILL extremely high for a January delivery month

The next active delivery month after January is February and here we witnessed A GAIN OF 3916 in contracts UP to 510,594.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results

Total COMEX silver OI ROSE BY A GOOD SIZED 499 CONTRACTS FROM 205,803 UP TO 206,302(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 GOOD OI COMEX GAIN OCCURRED WITH WITH A 5 CENT LOSS IN PRICING/TUESDAY.

WE ARE NOW INTO THE ACTIVE DELIVERY MONTH OF DEC.

Here we have a LOSS of 140 contracts DOWN to 359. We had 159 notices served up on longs yesterday, so we GAINED ANOTHER 19 contracts or an additional 95,000 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 a LOSS in the next front month of January of 35 contracts to stand at 936. The Feb non active month saw a LOSS of 79 contracts DOWN to 127. March is a very active month and here we witness a GAIN of 255 contracts UP to 161,397

We, today, had 56 notice(s) filed for 280,000, OZ for the DEC, 2019 COMEX contract for silver

Gold	Ounces
Withdrawals from Dealers* Inventory in oz*	nil oz
Withdrawals from Customer* Inventory in oz*	65,202.228 oZ INT DELAWARE
Deposits to the Dealer* Inventory in oz*	nil oz
Deposits to the Customer* Inventory, in oz*	nil
No of oz served (contracts) today	365 notice(s) 36,500 OZ (1.1353 TONNES)
No of oz to be served (notices)	568 contracts (56800 oz) 1.7667 TONNES
Total monthly oz gold served (contracts) so far this month	13,803 notices 1,380300 OZ 42.933 TONNES
Total accumulative withdrawals of gold from the Dealers* inventory this month*	NIL oz
Total accumulative withdrawal of gold from the Customer* inventory this month*	xxx oz

we had 0 dealer entry:

We had 0 kilobar entries

ii) out of Int. Delaware: 65,202.228 oz

leaving only one kilobar in the eligible comex gold

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 (13,803) x 100 oz , to which we add the difference between the open interest for the front month of DEC. (746 contracts) minus the number of notices served upon today (365 x 100 oz per contract) equals 1,437,100 OZ OR 44.699 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 (13,803 x 100 oz) + (746)OI for the front month minus the number of notices served upon today (365 x 100 oz )which equals 1,437,100 oz standing OR 44.699 TONNES in this active delivery month of DEC.

We GAINED 187 contracts or an additional 18,700 oz will stand at the comex as they REFUSED TO morph into London based forwards.

WHY ARE THEY NOT SETTLING?

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

Silver	Ounces
Withdrawals from Dealers* Inventory*	NIL oz
Withdrawals from Customer Inventory	NIL oz
Deposits to the Dealer* Inventory*	nil oz
Deposits to the Customer Inventory	600,820.89 oz Scotia
No of oz served today (contracts)	56 CONTRACT(S) (280,000 OZ)
No of oz to be served (notices)	303 contracts 1,515,000 oz)
Total monthly oz silver served (contracts)	3545 contracts 17,725,000 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*

ii) Into CNT: 600,820.89 oz

i) CNT: 15,567.770 oz

ii Delaware: 75,395.588 oz

total dealer silver: 87.293 million

total dealer + customer silver: 317.666 million oz

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The total number of notices filed today for the DEC 2019. contract month is represented by 56 contract(s) FOR 280,000 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 3545 x 5,000 oz = 17,725,000 oz to which we add the difference between the open interest for the front month of DEC. (359) and the number of notices served upon today 56 x (5000 oz) equals the number of ounces standing.

Thus the INITIAL standings for silver for the DEC/2019 contract month: 3545 (notices served so far) x 5000 oz + OI for front month of DEC (359)- number of notices served upon today (56) x 5000 oz equals 19,240,000 oz of silver standing for the DEC contract month.

We gained 19 contracts or an additional 95,000 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 ESTIMATED SILVER VOLUME: 45,587 CONTRACTS //

CONFIRMED VOLUME FOR YESTERDAY: 49,712 CONTRACTS..

YESTERDAY’S CONFIRMED VOLUME OF 149,712 CONTRACTS EQUATES to 248 million OZ 35.5% 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

NPV for Sprott

1. Sprott silver fund (PSLV): NAV RISES TO -1.77% ((DEC 18/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -1.08% to NAV (DEC 18/2019 )
Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ -1.77%

(courtesy Sprott/GATA)

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

NAV 14.67 TRADING 14.12///DISCOUNT 3,77

END

And now the Gold inventory at the GLD/

DEC 18/WITH GOLD DOWN $2.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 5.56 TONNES FROM THE GLD////INVENTORY RESTS AT 880.66 TONNES

DEC 17/WITH GOLD UP $.30 TODAY: 1 SMALL CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF .29 TONNES/INVENTORY RESTS AT 886.22 TONNES

DEC 16//WITH GOLD DOWN $.40 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 885.93 TONNES

DEC 13/ WITH GOLD UP $8.60 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 885.93 TONNES

DEC 12/WITH GOLD DOWN $2.65: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 885.93 TONNES

DEC 11/WITH GOLD UP $7.00: A SMALL CHANGE IN GOLD INVENTORY AT THE GLD: A WITHDRAWAL OF .30 TONNES/INVENTORY RESTS AT 885.93 TONNES

DEC 10//WITH GOLD UP $3.00: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 886.23 TONNES

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

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

DEC 18/2019/Inventory rests tonight at 880.66 tonnes

*IN LAST 728 TRADING DAYS: 56.59 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 628 TRADING DAYS: A NET 110.46 TONNES HAVE NOW BEEN ADDED INTO THE GLD INVENTORY.

end

Now the SLV Inventory/

DEC 18/WITH SILVER DOWN 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 364.858 MILLION OZ//

DEC 17//WITH SILVER DOWN 5 CENTS TODAY: A FAIR SIZED CHANGE IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 747,000 OZ FROM THE SLV/INVENTORY RESTS AT 364.858 MILLION OZ/?

DEC 16/WITH SILVER UP 12 CENTS: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 365.605 MILLION OZ//

DEC 13//WITH SILVER UP 7 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 365.605 MILLION OZ//

DEC 12/WITH SILVER UP 9 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 365.605 MILLION OZ

DEC 11/WITH SILVER UP 13 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 365.605 MILLION OZ//

DEC 10//WITH SILVER UP 5 CENTS TODAY: A BIG CHANGE IN SILVER INVENTORY: A PAPER WITHDRAWAL OF 1.495 MILLION OZ//// INVENTORY RESTS AT 365.605 MILLION OZ//

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//

LIBOR SCHEDULE AND GOFO RATES:

YOUR DATA…..

6 Month MM GOFO 1.99/ and libor 6 month duration 1.90

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

G0LD LENDING RATE: – .09

XXXXXXXX

12 Month MM GOFO
+ 2.01%

LIBOR FOR 12 MONTH DURATION: 1.97

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE = -.04

end

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

Outlook 2020 | Buy Gold and Silver To Hedge Massive Risks including U.S. ‘Insolvency’

18, December

Buy gold and silver to hedge risks in 2020.
IG interview Mark O’Byrne of GoldCore

With late cycle risks and concerns about global growth, many Wall Street analysts are increasingly bullish on gold. Mark O’Byrne, founder at GoldCore spoke to IGTV’s Victoria Scholar about the outlook for gold in 2020.

He explained why most analysts including GoldCore are optimistic on both gold and silver. He also tells IGTV why he thinks palladium is looking overvalued in the near term and that unlike gold and silver, it is not a hedging or safe haven asset.

Watch Interview Here

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

17-Dec-19 1478.40 1475.80, 1120.63 1121.76 & 1325.24 1323.35
16-Dec-19 1477.40 1477.90, 1106.87 1108.13 & 1325.97 1325.23
13-Dec-19 1470.60 1466.60, 1097.51 1099.07 & 1315.60 1315.10
12-Dec-19 1474.70 1467.80, 1117.82 1116.56 & 1325.02 1319.55
11-Dec-19 1468.05 1466.80, 1116.89 1112.71 & 1324.92 1322.47
10-Dec-19 1464.45 1464.95, 1112.25 1112.04 & 1322.69 1322.26
09-Dec-19 1463.60 1461.70, 1112.04 1111.48 & 1323.09 1320.06
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

Is Your Gold and Silver Bullion S.A.F.E. ?
Segregated, Actionable, Flexible and what are the total Expenses?

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

16-Dec-19 1477.40 1477.90, 1106.87 1108.13 & 1325.97 1325.23
13-Dec-19 1470.60 1466.60, 1097.51 1099.07 & 1315.60 1315.10
12-Dec-19 1474.70 1467.80, 1117.82 1116.56 & 1325.02 1319.55
11-Dec-19 1468.05 1466.80, 1116.89 1112.71 & 1324.92 1322.47
10-Dec-19 1464.45 1464.95, 1112.25 1112.04 & 1322.69 1322.26
09-Dec-19 1463.60 1461.70, 1112.04 1111.48 & 1323.09 1320.06
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

Watch Our Latest Video Update Here

SIGN UP FOR OUR AWARD WINNING MARKET UPDATES HERE

ii) Important gold commentaries courtesy of GATA/Chris Powell

This is a must read..the Auditor for gold lied to Congress telling them that seals have never been broken. This will explain why China has accumulated north of 20,000 tonnes..the entire uSA gold supply at Fort Knox has been compromised.

the paper in full is below…

(Jan Nieuwenhuijs (Koos Jansen))

Jan Nieuwenhuijs: Gold auditor lied to Congress — Fort Knox vault seals were broken, metal was moved

Submitted by cpowell on Tue, 2019-12-17 15:18. Section: Documentation

10:18a ET Tuesday, December 17, 2019

Dear Friend of GATA and Gold:

Contradicting testimony given to Congress in 2011 by the Treasury Department’s inspector general, Eric M. Thorson, Voima Gold researcher Jan Nieuwenhuijs today produces documentation showing that seals placed on gold vaults at the Fort Knox depository often have been broken so gold could be moved for reasons that have not been explained.

Nieuwenhuijs’ painstaking investigation exposes the longstanding inadequacy of the Treasury Department’s gold auditing and the department’s refusal to answer critical questions. His research implicitly supports suspicions that, far from sitting quietly in the vaults at Fort Knox, the U.S. gold reserve has been in play internationally for many years.

Nieuwenhuijs report is headlined “U.S. Official Gold Reserves Auditor Caught Lying” and it’s posted at Voima Gold here:

https://www.voimagold.com/insight/us-official-gold-reserves-auditor-caug…

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

END

We thought that the BIS is removing itself from the gold swap business. I guess we were wrong. Last month they doubled their swaps and thus the reason for keeping a lid of the gold price.

Such crooks

(Robert Labourne/GATA)

Robert Lambourne: BIS gold swaps and derivatives at highest point since February

Submitted by cpowell on Tue, 2019-12-17 19:37. Section: Documentation

By Robert Lambourne
Tuesday, December 17, 2019

In the past two months the Bank for International Settlements, which represents most central banks in the world, has nearly doubled its gold swaps and derivatives position, the bank’s October and November statements of account show.

The BIS uses gold swaps and other gold derivatives to gain access to gold held by commercial banks. As of November 30 the bank’s swaps and derivatives, estimated at 250 tonnes, were at their highest level since February. But the recent levels are still much reduced compared compared to those of the second half of 2018.

There is not enough information in the BIS’ monthly reports to calculate the exact amount of swaps, but based on the information in the bank’s statement for November, its month-end gold swaps of about 250 tonnes compare with 186 tonnes at October 31, 128 tonnes at September 30, 162 tonnes at August 31, 95 tonnes at July 31, 126 tonnes at June 30, 78 tonnes at May 31, 88 tonnes at April 30, 175 tonnes at March 31, 303 tonnes at February 28, 247 tonnes at January 31, 275 tonnes at December 31, 2018, and 308 tonnes in November, 372 tonnes in October, 238 tonnes in September, and 370 tonnes in August 2018.

More background on the bank’s medium-term history of using gold swaps is available here:

http://www.gata.org/node/18825

On February 3 this year GATA published comments from a former gold industry executive describing the activities of the BIS in gold swaps in earlier decades:

http://www.gata.org/node/18828

The former executive wrote: “Effectively this process created a supply of ‘paper gold’ — sometimes but not always marked to market — that had a depressing effect on the gold price.”

The BIS refuses to explain its activity in the gold market — its objectives and underlying parties in interest —

http://www.gata.org/node/17793

— and mainstream financial news organizations refuse to ask about it.

—–

Robert Lambourne is a retired business executive in the United Kingdom who consults with GATA about the involvement of the Bank for International Settlements in the gold market.

* * *

Help keep GATA going:

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

http://www.gata.org

END

USA government is again asking for a stay on the civil action while they continue with their tiny criminal spoofing case. The real crime is many times that of spoofing

(Nicola/Finance Needs)

U.S. government seeks complete delay of civil action against precious metals traders

Submitted by cpowell on Tue, 2019-12-17 14:20. Section: Daily Dispatches

By Maria Nikolova
Finance Feeds, Avon, England, U.K.
Saturday, December 14, 2019

https://financefeeds.com/doj-cftc-push-complete-stay-civil-action-precio…

The efforts by the U.S. government are continuing to stay the civil action brought by the Commodity Futures Trading Commission (CFTC) against Michael Thomas Nowak and Gregg Francis Smith, precious metals traders accused of spoofing.

On December 13 the CFTC and the Justice Department once again made clear their stance that the civil case should be stayed pending the outcome of the criminal proceedings. The CFTC and the Justice Department replied to arguments by Nowak and Smith opposing the government’s motion for a complete stay of this action.

…

In its memorandum, the CFTC argues that of defendants’ alternative proposals are defective and should be rejected. The CFTC opposes the defendants’ suggestions to partially stay the action on asymmetrical terms that are, according to the regulator, contrary to applicable rules, unfair to the CFTC and to nonparties, and inconsistent with the defendants’ purported desire to avoid unnecessary delay.

The Justice Department argues that the defendants’ arguments in opposition to a stay have no merit. The department says the defendants’ proposed alternatives to a complete stay would unfairly allow them to obtain discovery from the CFTC and third parties far beyond what they would be entitled to do in the related criminal case, while shielding them from having to produce any discovery, respond to pleadings, answer interrogatories, or sit for depositions if they believed those actions would touch on their Fifth Amendment rights.

According to the Justice Department, in their opposition briefs the defendants seek a lopsided stay of discovery permitting them to deploy the full array of civil discovery tools while avoiding any obligation on their part to produce documents, respond to pleadings, answer interrogatories, or be deposed. The defendants take different positions on the Justice Department’s requested stay, with Smith opposing the stay completely with a “slight modification” and Nowak agreeing there should be a stay except for document discovery.

The Justice Department argues that the court should reject both defendants’ proposals because, under either, the defendants could obtain civil discovery from others while being afforded protections broader even than those provided by the Fifth Amendment insofar as the defendants would not be required to provide discovery or submit to questioning.

The court is advised to “reject that self-serving, one-sided approach and instead stay this case completely pending the outcome of the parallel criminal prosecution.”

The CFTC charges the defendants with spoofing, engaging in a manipulative and deceptive scheme, and attempting to manipulate prices in the precious metals futures markets while employed at a major U.S. bank.

According to the CFTC complaint, from at least 2008 and continuing through at least 2015, Nowak and Smith repeatedly engaged in manipulative or deceptive acts and practices by spoofing (bidding or offering with the intent to cancel the bid or offer before execution) while placing orders for and trading precious metals futures contracts on CME Group’s exchanges. The defendants are alleged to have placed thousands of orders with the intention to cancel them in order to send false signals of increased buying or selling interest designed to trick market participants into executing the orders the defendants wanted filled.

The complaint also alleges that Nowak and Smith engaged in spoofing with the intent to manipulate market prices and create artificial prices, and thereby enable their orders to be filled sooner, at a better price, or in larger quantities than they otherwise would.

The U.S. regulator seeks, among other things, civil monetary penalties, disgorgement, restitution, trading bans, and a permanent injunction against future violations of the federal commodities laws.

END

The crooked banks continue their criminal ways as they settle the Fannie Mae, Freddie Mac bond rigging litigation
(Stempel/Reuters)

Big banks settle Fannie Mae, Freddie Mac bond-rigging litigation

Submitted by cpowell on Tue, 2019-12-17 16:04. Section: Daily Dispatches

Round up the usual suspects, slap them on the wrist, and send them on their merry way to their next fraud.

* * *

By Jonathan Stempel
Reuters
Tuesday, December 17, 2019

NEW YORK — Thirteen prominent banks and financial services companies agreed to pay $337 million to resolve claims by investors that they conspired to rig prices of bonds issued by mortgage companies Fannie Mae and Freddie Mac for a decade.

The preliminary settlements filed late Monday night in federal court in Manhattan require a judge’s approval, and would conclude private nationwide antitrust litigation brought against 16 defendants, with settlements totaling $386.5 million.

… Barclays, which underwrote the most Fannie Mae and Freddie Mac bonds, will pay $87 million.

Bank of America, BNP Paribas, Cantor Fitzgerald, Citigroup, Credit Suisse, HSBC, JPMorgan Chase, Morgan Stanley, Nomura, Societe Generale, Toronto-Dominion, and UBS will separately pay a combined $250 million.

The banks denied wrongdoing in agreeing to settle. Deutsche Bank, Goldman Sachs, and units of Tennessee’s First Horizon previously settled for a combined $49.5 million. …

… For the remainder of the report:

https://www.reuters.com/article/us-fannie-mae-freddie-mac-bonds-lawsuit/…

END

Craig Hemke outlines at Sprott Money why gold manipulation increased in 2019: the huge increase in open interest and Exchange for physical issuance.

(Craig Hemke/Sprott)

Craig Hemke at Sprott Money: Gold price manipulation in 2019

Submitted by cpowell on Tue, 2019-12-17 23:02. Section: Daily Dispatches

6:05p ET Tuesday, December 17, 2019

Dear Friend of GATA and Gold:

Gold market manipulation increased this year, as measured by the volume of futures contracts pending on the New York Commodities Exchange, the TF Metals Report’s Craig Hemke writes today for Sprott Money. While the U.S. Justice Department’s prosecution of gold futures traders for “spoofing” the market is encouraging, Hemke writes, the futures market still consists largely of speculators who don’t intend to take delivery of metal and bullion banks that sell without having metal to deliver. As long as these circumstances continue, Hemke writes, gold’s ascent will be powerfully resisted. Hemke’s analysis is headlined “Gold Price Manipulation in 2019” and it’s posted at Sprott Money here:

https://www.sprottmoney.com/Blog/gold-price-manipulation-in-2019-craig-h…

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

iii) Other physical stories:

a must read…

and many thanks to Jan N for providing this to us. (Jan is our very famous Koos Jansen)

US Official Gold Reserves Auditor Caught Lying

Submitted by Jan Nieuwenhuijs of Voima Gold

In my previous post, from March 2018, on the audits of US official gold reserves, I have exposed that during the audit procedures of the US official gold reserves from 1974 through 2008, repeatedly audit staff deviated from the auditing protocol, while internal control meant to prevent this was failing. Many audits and assay reports have been destroyed. For decades a significant share of the metal was excluded from verifications for no apparent reason. And, the US government went to great lengths in withholding information and spreading false information about the audits, among other findings in documents obtained through Freedom of Information Act (FOIA) requests. All in all, these findings made me question the integrity of the auditor.

After my last publication, I have obtained more documents from the US Treasury through FOIA requests, which expose another falsehood that puts the auditor in an even more peculiar position. In conflict with the audit protocol, the permanent seals of the vault compartments have been broken, time and again. In addition, the auditor has lied about these events, and when confronted, it’s unable to explain its actions. By now, I have lost faith in the auditor fully.

Prologue

It’s been a very long investigative journey that has led me to make bold statements, such as the ones above, about the auditor of the world’s largest gold holding. I wouldn’t claim anything of this magnitude if I didn’t thoroughly do my homework and research every single possibility that could have caused the auditor to have accidentally spread inaccurate material, including asking the auditor for an explanation.

If any of their statements appeared to be false, surely, they would be able to explain what I was missing. The head auditor said during a congressional hearing in 2011 (source video 42:50):

Transparency is our business.

Who would disagree? The US official gold reserves, weighing over 8,000 metric tonnes, deserve nothing less than an accurate audit.

My journey started in 2014, when I first discovered—in contrast to what I was accustomed to reading on blogs and in newspapers—that the US official gold reserves are audited every year. I published an article on my discoveries, titled A First Glance At US Official Gold Reserves Audits, which was basically a summary of all publicly available documents about the audits. Logically, these documents present a narrative that looks to be credible at the surface, but I found some questions left unanswered, and wrote in my article “this post will be part one of a series.” (Little did I know what I got myself into.) Given the importance of the subject, I intended to submit FOIA requests at the US government, in an open-minded attempt to have my concerns removed.

Since 2014 I have been prosecuting the US government. I have emailed staff of all related institutions—the US Treasury, The Office of Inspector General of the Treasury, the US Mint, and National Archives—that were initially replied, but as I got closer to the details, ceased altogether. I have submitted several dozen FOIA requests to all related institutions, some of which were honored, some not. In search of answers, I repeatedly called the Inspector General. In one of those calls, my contact simply hung up while I was talking. This incident is emblematic of this whole investigation.

On one occasion, the Mint wrote me a specific FOIA request would cost $3,145 “based on an estimate of 1,200 pages of responsive documentation and the duplication costs associated with the requested documents. This estimate also includes 40 hours of estimated search time and 8 hours of estimated review time…” The costs seemed outrages to me, but I got financed through a crowdfunding campaign and paid the Mint. A few months late(r), I received 223 redacted pages that contained 68 pages of reports I didn’t ask for and 21 pages that were copied twice. Effectively, I got 134 pages for $3,145. After some pressure on the Mint, they agreed the costs had been estimated too high, and I got the full amount refunded. (And I ordered my crowdfunding platform to refund all my donors.) The barrier of the costs was used to keep me at bay. To no avail, instead, I got some essential pages in my possession.

In total, I have written nine articles to inform my audience about the developments (I, II, III, IV, V, VI, VII, VIII, IX). After the last one, which was a comprehensive overview of every piece of information I had found (published on March 28, 2018, at the BullionStar website), a reply to another FOIA request came into my mailbox. I received a document that irrefutable reveals a lie by the auditor.

Today’s article is about this falsehood, and numerous other false statements by the auditor, that all have one thing in common: they hide the fact that most vault compartments have been re-opened multiple times after being put under permanent seals, which were meant to prevent re-opening of the doors. Upon request, the auditor provided me one argument for these actions—the “re-opening” of compartments. Alas the argument is in conflict with another statement by them, made under oath, so the auditor still stands as unable to answer a critical question.

Unfortunately, and contrary to how it could have been done, the entire audit process from 1974 until 2008 is extremely complicated. The account below is simplified—I can’t discuss every detail in every article—but for the ones that want to know the details I have added external sources (in parentheses with hyperlinks), which can be used to cross-check my statements. (Also, you can read my previous posts, and if anything is still unclear, I invite anyone to ask me to expand on my conclusions in the comment section below this article. I’m willing to substantiate any findings—as one should when making bold claims.)

Let’s start with some background information, and then we will discuss the heart of the matter.

Introduction

The US official gold reserves are the largest globally at 8,134 metric tonnes (owned by the US Treasury). Although this gold does not back the US dollar at a fixed parity as it did before 1971, it does provide essential support as a final backstop to the dollar and thus credibility to the present world reserve currency.

The majority of the gold is located at the US Mint depository at Fort Knox. Smaller amounts are stored at US Mint depositories in Denver and West Point. Aggregated this metal is referred to as Deep Storage gold and is captured within 42 sealed vault compartments. The remainder is at the Federal Reserve Bank of New York.

When the audits commenced in 1974, the protocol designed was simple (page 534). The following excerpt is from the first auditing committee:

In performing the audit, the gold bars are physically moved from one vault compartment to another. During this operations [sic], the melt numbers and the number of bars in each melt are verified with an inventory listing, and one in fifty melts is randomly selected for weighing and test assay.

One melt averages about twenty bars cast from one crucible of molten gold.

The audit protocol follows that “these actions, having once been performed by an authorized committee, in accordance with established procedures, will not have to be repeated as long as the assets verified remain under an unimpaired joint seal.” Compartments physically verified were placed under Official Joint Seal (OJS) to “avoid the necessity of verifying all assets in each annual or special settlement (audit).” The US Treasury pledged to do a “periodic, cyclical inventory” to “ensure that about 10 percent of the gold” was physically inspected annually, eventually to have audited “all the gold for which the US government is accountable” “by 1984.” The essence of the “established procedures” was to open, audit and seal each compartment once. We will return to this fundamental topic later on.

Since the stated purpose of joint sealing was to avoid the need of “re-audits,” all the gold could (after 1984) be verified by simply checking if the seals were unimpaired. Great intentions, but this is not what happened.

The current auditor of the US monetary gold is the Department of the Treasury’s Office of Inspector General (OIG). Representing the OIG, Eric M. Thorson attended the congressional hearing for the Gold Transparency Act (not enacted) that was initiated by Ron Paul in 2011. Mr. Thorson’s testimony at the hearing serves as the official statement by the government on the audits. Having weighed his words carefully, Thorson spoke under oath:

… 100 percent of the U.S. Government’s gold reserves in the custody of the Mint has been inventoried and audited. … I can say that without any hesitation, because I have observed the gold and the security of the gold reserves myself.

… the Committee for Continuing Audit of the U.S. Government-owned Gold [The Committee that started the audits] performed annual audits of Treasury’s gold reserves from 1974[*] to 1986. … by 1986, 97 percent of the Government-owned gold held by the Mint had been audited and placed under joint seal. So once you have done that, and that seal remains unbroken, then I am not sure what other benefit there would be to going back into it at that point. …

Since 1993, when we [OIG] assumed responsibility for the audit, my office has continued to directly observe the inventory and test the gold. In fact, my auditors signed the official joint seals … placed on those compartments, inventoried and tested in their presence. At the end of Fiscal Year of 2008, all 42 compartments had been audited by … the Committee for Continuing Audit of the U.S. Government-owned Gold, or my office, and placed under official joint seals.

Thus, in summary:

From 1974 until 1986, 97 percent of the gold at the Mint had been verified by the Committee for Continuing Audit.
In 1993 the OIG became responsible for the audits, and by 2008 all compartments had been verified and sealed.

The conclusions we derive from Thorson’s testimony:

From 1987 until 1992, there were no audits.
From 1993 until 2008, the remaining 3 percent of the gold was verified.

Thorson doesn’t mention anything about vault compartments having been re-opened.

The Problem

First of all, the OIG did not assume responsibility for the audits since 1993, but since 1982 as disclosed in one of the few documents that survived the 1980s (page 2).

Effective October 1, 1982, the Internal Audit Staffs of BGFO and the United States Mint [Committee for Continuing Audit] were reorganized under the Department of the Treasury, Office of the Inspector General [OIG].

Ever since the OIG became part of the audits in 1982, exactly what was not supposed to happen, did happen: vault compartments that had been physically verified and sealed were re-opened. Read with me, from the 1986 audit report regarding the Fort Knox (page 8) and Denver (page 9) depositories:

For some reason, starting in 1983, “re-audits” were performed over 1,929 tonnes “in accordance with the plan approved by the Treasurer.” However, in 1983, both depositories had already been fully audited, while West Point had not. Why were these compartments re-opened when the protocol stated that, “these actions” (physical verification) “having once been performed … will not have to be repeated as long as the assets verified remain under an unimpaired joint seal”? The OIG can’t explain this to me, and neither can it explain to me what “the plan approved by the Treasurer” was.

What Thorson carefully refrained from mentioning under oath, he mentions in a written statement for the Gold Transparency Act. At the surface, his official testimony seems identical to his written statement, but when I compared both word for word, the latter crosses a topic that’s excluded in the former. Thorson never spoke about this in the congressional hearing (page 45):

From 1987[**] to 1992, the Mint continued to perform an annual inventory and verification of the gold reserves in accordance with its own policies over those compartments that had not been placed under Official Joint Seal…

Note that from the quote above, we learn that the US Mint—mind you, the custodian of the gold—audited the US monetary gold “in accordance with its own policies” from 1987 through 1992. This is arguably like a bank opening its customers’ safety deposit boxes. According to universal auditing principles, a custodian is not authorized to audit its client’s assets. An independent entity should audit custodial gold. This might explain why Thorson failed to mention this in the congressional hearing.

Note also that Thorson writes that the Mint exclusively opened “those compartments that had not been placed under Official Joint Seal.” This is false, and I can prove it.

I have obtained copies of the seals that were placed by the Mint on 5 Deep Storage compartments (together containing 795 tonnes of gold) between 1987 and 1992 (download here). Thorson’s written statement is false, as these compartments had, for a fact, already been verified and sealed, because they were all at Fort Knox and Denver, which were fully audited by 1982. Let’s have a look at one of the seal copies.

We can see the “date sealed” at the top, “July 25, 1990,” and the depository is “Fort Knox, Kentucky.” Thus, Thorson lied to us when he said that the Mint was only verifying “those compartments that had not been placed under Official Joint Seal,” because we know Fort Knox was fully audited, and thus all of its compartments put under Official Joint Seal, by 1982.

We can also see on the seal when this compartment was “sealed previously.” It was in 1976 (underlined in red). Confirming it was a “re-audit.” If it was the first audit, the “sealed previously” date had to be prior to 1974, before any audits were performed.

Last but not least, at the very bottom of the seal, we see a date, “February 16, 1993” (in the red oval), which is when this seal was removed by the OIG (presumably for yet another “re-audit”). More evidence that the OIG must have known what happened to these compartments in between 1987 and 1992. As, removing the seal in 1993 by the OIG, clearly would have shown the history of this compartment. Attentive readers might see a pattern emerging.

From 1993 until 2008, additional compartments were “re-audited.” Thorson, again, did not mention these “re-audits” under oath, but in this specific period, more than 2,000 tonnes*** of gold saw the light of day again. I know through an excel sheet (download here) the OIG sent me in response to a FOIA request. When I asked the OIG for confirmation on how much they audited since 1993 they replied (source):

[Since 1993]…we observed the counting of 246,203 bars, which equates to 81,638,569 FTOs (or 2,539 tonnes).

When I asked my contact at the OIG why thousands of tonnes had been “re-audited” in periods from 1983 until 2008, he replied:

Unfortunately, the OIG stopped responding to my emails by late 2016. Everything had to be submitted through FOIA requests, I was told, which made my investigations take a few years extra.

Notice that the OIG doesn’t mention “the plan approved by the Treasurer,” which at least could have explained the “re-audits” from 1983 until 1986.

An explanation of why so many compartments had been “re-verified (in some cases) was because occasionally vault contents would have to be moved.” However, this argument makes no sense. It is true that since 1974, when the audits started, gold has been moved. Roughly 1,900 tonnes were moved from the New York Assay Office to West Point. But this movement occurred in 1982 before any “re-audits” began. There have been no other substantial movements of gold (read the chapter “Problem 11”).

Additional evidence indicating there hasn’t been any movement of Deep Storage gold comes, ironically, from Thorson. Let’s go back to the congressional hearing with Paul and Thorson in 2011. After Thorson’s testimony, a Q&A follows wherein Paul asks Thorson about the audits from 1974 until 1986, and if it would be “worthwhile to inventory and assay [audit] this portion of the gold” again. Thorson replies that would be unnecessary because (39:00):

. . . there is no movement. Those doors aren’t opened. There is nothing there that can happen. Because once those doors are sealed … it’s very obvious if those seals are ever broken. … There is no movement. Those doors are not opened.

A strange thing to say, for Thorson, as this is exactly what he was continuously doing: re-opening the compartment doors. With this statement, Thorson confirms that any compartment should never have been re-opened. Not only is this what happened time and time again, but it also started precisely from the moment Thorson’s department (OIG) became involved with the audits in 1983.

In trying to think of any legitimate reason why compartments have been re-opened, ever, I decided to submit a FOIA request for the audit protocols that prevailed after 1992. Maybe the audit approach had changed? If the OIG can’t explain it to me, maybe I can find the answers in some documents? What if I’m still missing something?

Eventually, I received the Mint’s 2005 audit directive that shows us whenever a compartment has been “verified. . . the annual verification [i.e., audit] will be limited to inspection of the Seals.” Put differently: once physically verified the doors remain closed (from page 11):

Makes sense as this auditing approach matches the one from the 1970s. Like Thorson said during the congressional hearing in 2011: “So once you have done that [physical verification], and that seal remains unbroken, then I am not sure what other benefit there would be to going back into it at that point. . . . There is no movement. Those doors are not opened.” (Note in the quote above that “An OIG Representative must be present for any subsequent opening.” The issue isn’t whether it’s possible to re-open a compartment. Gold inside a compartment that can never be opened again has no value. You might as well put it in a rocket a blast it into the sun. The point is that barring legitimate reasons to re-open a compartment (e.g., selling the metal inside), they should remain closed.)

Conclusion

Altogether, the vast majority of Deep Storage vault compartments have been re-opened for dubious reasons. (For exact data on “re-audits,” see my article “Audits Of US Monetary Gold Severely Lack Credibility.”)

After years of prosecuting, these are the facts as they lay in front of us:

The majority of Deep Storage vault compartments have been “re-opened” for unknown or dubious reasons. (Again, for details, see “Audits Of US Monetary Gold Severely Lack Credibility.”)
Under oath, the auditor, Thorson, carefully avoided the subject of “re-opening” compartments.
In another written statement, the same auditor lied about the subject of “re-opening” compartments.
When this auditor was asked for an explanation regarding the “re-opening” of compartments, it could only muster an unfitting one.

I find it astonishing that all falsehoods the auditor (OIG) has spread have in common that they hide the fact compartments have been “re-opened.”

My investigation concerns the audits, which appear to have been executed with an inadequate degree of integrity. Accordingly, there should be a new audit authorized by Congress, which, incidentally, is also the opinion of former US Mint Director Edmund C. Moy (see tweet below).

Naturally, if the OIG or Treasury wants to respond to my findings, that would be more than welcome, and I would be happy to engage with them.

Notes

*: The original documents states “1975” but for the sake of simplicity I have changed it into “1974”. Officially, the Committee for Continuing Audit of the U.S. Government-owned Gold started in 1975, but because they accepted the audit performed in 1974 in their program effectively their program started in 1974.

**: The original documents states “1986” but to improve the readability of this post I have changed it into “1987.”

***: An overview of the “re-audits”:

– From 1983 until 1986, 1,929 tonnes were “re-audited.”
– From 1987 until 1992, 796 tonnes were “re-audited.”
– From 1993 until 2008, 2,296 tonnes were “re-audited.” (By 1986 only 243 tonnes at West Point were not audited. According to the OIG, from 1993 until 2008, 2,539 tonnes were audited. 2,539 minus 243 is 2,296, which is the amount “re-audited” from 1993 until 2008.)

Altogether from 1983 until 2008, 5,021 tonnes have been “re-audited” for unclear reasons.

Stay up to date, subscribe to Voima Insight—click here

END

Nicholas…to me

There was a great post on the GATA website extracted from ZeroHedge concerning copious research by Jan Nieuwenhuijs on the complete lack of integrity in the audit process of Fort Knox Gold.over several decades.

If there are indeed any ‘gold’ bars in Fort Knox, then mere visual inspection is no audit at all. Here is an excerpt from one internet posting (I have known about this for many years)

Roughly 15 years ago (being 25 years from today’s date) – during the Clinton Administration [think Robert Rubin, Sir Alan Greenspan and Lawrence Summers] – between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA [more than 16 Thousand metric tonnes]. Subsequently, 640,000 of these tungsten blanks received their gold plating and WERE shipped to Ft. Knox and remain there to this day. I know folks who have copies of the original shipping docs with dates and exact weights of “tungsten” bars shipped to Ft. Knox.

The balance of this 1.3 million – 1.5 million 400 oz tungsten cache was also plated and then allegedly “sold” into the international market. .

Therefore a 100% assay audit is the only possible valid audit process for Fort Knox Gold.The only tradable gold nowadays is in the form of .9999 finesse gold as delivered from an independent refiner of impeccable repute.Not only does USA not hold anything but a mere fraction of the gold that it alleges it holds in vault storage, but there is also the matter of many thousand of tonnes of custodial gold allegedly held for other sovereign nations.Remember that the IMF alleged gold reserves of 2,814 tonnes are mere double counted quota allocations from the IMF founding members,and do not exist at all.

99% of Official USA Gold Reserves in Denver,Fort Knox and West Point are all classified as ‘deep storage’ gold and the adoption of this ‘deep storage ‘ classification was pointed out by the sorely missed Adrian Douglas many years ago, “Deep storage’ used to be a term that was assumed to relate to anticipated delivery of Barrick’s hedging programme, but since Barrick has now reported closure of this hedge book, the term ‘deep storage’ may well now refer to (totally inaccessible ) gold reserves in the Grand Canyon.

I hope that I have not irritated anyone by recording the above content because this knowledge is really basic course 101 in understanding gold suppression and has been emphasized by GATA for nearly two decades now.

Regards

Nicholas

end

This is why you do not buy bitcoin or other cryptocurrencies. The Chinese scammer has now allegedly liquidated his stolen “coins”

(zerohedge)

Cryptos Continue Collapse Overnight After Chinese Scammer Allegedly Liquidates

Crypto markets are under pressure for the 3rd day in a row making for another ugly week as the year comes to a close…

Source: Coin360

Altcoins are underperforming Bitcoin but they are all falling hard this week…

Source: Bloomberg

But, Bitcoin plunging close to the critical $6400 level…

Source: Bloomberg

The last three days have seen notable dumps overnight in Bitcoin…

Source: Bloomberg

A lot of chatter over the catalyst for this systemic and major selling has been associated with a Chinese cryptocurrency scammer allegedly liquidated his stolen horde via over-the-counter markets. The initial sell-off by PlusToken caused a domino effect, causing mass liquidations.

As NewsBTC.com’s Yashu Gola reports, PlusToken, a fraud scheme that duped investors of more than $2bn, dumped huge bitcoin stockpiles from its anonymous accounts, according to Chainalysis.

The New York-based blockchain consultancy cited an internal investigation that showed PlusToken scammers on a systematic crypto liquidation spree. Some of them have been actively selling bitcoin since June – right after the cryptocurrency established a year-to-date high of circa $14,000.

It was the same period when the Chinese authorities nabbed people suspected to have been involved with the PlusToken scam.

“Since that time, market observers have often pointed to possible sales tied to PlusToken suspects not in custody as one of many reasons for price declines,” wrote Chainalysis.

The Cascading Effect

The latest bitcoin crash took the cryptocurrency’s rate down by close to 4 percent. The wild move downhill accompanied a sudden spike in volumes, validating an interim breakout that NewsBTC predicted in one of its analysis.

The sudden dump prompted bitcoin to come out a sideways trading range | Source: TradingView.com, Coinbase

Chainalysis noted that PlusToken had so far cashed out at least $185mn worth of bitcoin via OTC desks. Their cashout strategy, therefore, could have either manipulated the market dynamics directly or have indirectly changed the perception of traders towards bitcoin.

“We can say that those cashouts cause increased volatility in Bitcoin’s price and that they correlate significantly with Bitcoin price drops,” added Chainalysis.

PlusToken On-Chain volume against the bitcoin price | Source: Chainalysis

But the most fearsome takeaway remains the scammer’s likelihood of continuing the price dump. Chainalysis’s study shows that the entity still holds a massive stash of bitcoin that it might liquidate at a later stage. That raises the prospects of more price crashes unless there is an adequate demand to match the scammer’s supply flow.

end

Currencies and Precious Metals, Have All Been Corralled by Algos!

Posted December 18th, 2019 at 10:56 AM (CST) by J. Johnson & filed under General Editorial.

Great and Wonderful Wednesday Morning Folks,

Gold is trading lower in our earliest report with the trade at $1,480.20, down 20 cents after hitting $1,483.60 with the low at $1,479.10. Nothing says “boring” like a $4.50 trading range and being in a sideways channel for over 1-1/2 months. Silver is a little bit more active with its trade at $17.055 down 1.7 cents after hitting $17.125 with the low close by at $17.035. This is giving us sell signal that we’ve exposed, over the years, and during the Triple Witch Week, with the expected buying on the dip after tomorrows activities. The US Dollar is trading higher with the value pegged at 96.945, up 16.8 points and is the high so far with the low at 96.780. All this was done way before 5 am pst, the Comex open, the London close, and after Lisa Page explains (years later) what her and her lover meant when the said insurance policy blah blah blah.

In Venezuela, precious metals prices are making it easier to buy with a 25.97 Bolivar reduction now pricing Gold at 14,783.50 Bolivar. Silver is priced at 170.337 Bolivar, saving today’s buyers on average a 0.699 in Bolivar value. Argentina’s Peso, now has Golds value at 88,444.69 Peso’s giving the buyers a 116.42 A-Peso savings with Silver at 1,019.08 Peso’s giving today’s buyer a 3.52 discount from yesterday. The Turkish Lira is “not” offering a sale price on the real money (yet) with Gold now pegged at 8,753.69 Lira, increasing its value by 39.35 Lira with Silver at 100.862 Lira adding 0.193 T-Lira’s value, as the last days of the year come to a close.

December Silver Delivery Demands now stand at 359 fully paid for contracts proving a reduction of 140 from yesterday’s count, that may have been given receipts for physicals here at the Comex, or papers sent to London, or whatever the latest excuse might be for all those prices in (parenthesis) and throughout the day. Today’s trading range for the Volume of 13, posted up on the board, is between $17.00 and $16.98 with the last price at the high and the high is still the current physical price as the futures price is pushed lower than the physicals. March Silver is now below the real with its new low is at $16.950.

Silver’s Overall Open Interest continues to gain more short contracts in order to tell us futures traders what the (fake) paper value of a product is worth with the count now at 206,465 Overnighters, showing an increase of 611 contracts.

In the news yesterday, Q popped in 16 different posts with the last (3716) being duplicated. The one we like is post #3708 in which the “CORNEY” hidden message in the FISA report was proven to be something much bigger and that has been used to hide may things and for quite a while now;

3708
search dep.justice and look what you find re corney
https://search.justice.gov/search?query=corney&op=Search&affiliate=justice

https://www.justice.gov/oip/foia-library/foia-processed/general_topics/actions_dag_appointment_mueller/download

…confinned by then-FBI Director James 8. Corney in testimony before the House Permanent

“James 8 Corney”

How many other documents have been doctored this way to hide the evidence in clear sight? How about Hillary or Bill Clinton’s name, or any others hiding their crimes with wrong spelling? With this game being played within our branches of government, the hidden messages may be “huge” and may be a damn good reason to review all the documents with the suspicious eyes of real Patriots, who want nothing but law and order no matter what. Declassify everything and let us move forward!

Are there similar tactics being used in the markets or inside the CFTC/SEC? Stay Tooned! All Mispelled Words Matter! The past administrations links are still being brought out. One thing for sure, no matter what has happened so far, in all the countries in all of western society, the currencies refuse to budge because they have been corralled by Algos. If this was truly a free moving market, the price swings would have cleaned out a few bad banks already, and realigned a few nations as well. Yet, with all this Algo trading controlling everything in the markets, nothing has shaken the currencies. Wait till the plug is pulled!

The game in precious metals will end when the last bar is extracted from the exchanges. We know factually that the criminal element is running the vaults and their helpers in government are slowly being exposed. We know the outcome regardless of the delays in the rising price. This is why we continue to keep watch and expose what we can while we can. Enjoy your day, keep that smile on your face and a positive attitude in your head no matter what, and as always …

Stay Strong

JJohnson

end

The Federal Reserve Ban k of New York is stonewalling the Marten’s request for information of JPMorgan’s withdrawal of cash from the repo market

(the Martens/Wall Street on Parade

The New York Fed Is Keeping JPMorgan’s Secrets Close to Its Chest

By Pam Martens and Russ Martens: December 18, 2019 ~

The Federal Reserve Bank of New York (New York Fed) seems intent on stonewalling Wall Street On Parade from receiving some very basic information on JPMorgan Chase’s rapid drawdown this year on its liquid reserves at the New York Fed – a matter which some on Wall Street have fingered as a contributing cause of the ongoing repo loan crisis. More on that in a moment, but first some background.

John Williams, President of the Federal Reserve Bank of New York

For the past decade Wall Street On Parade has been keeping close tabs on the crony operations of the New York Fed. (See related articles below.) The New York Fed has effectively morphed into a key cog in Wall Street’s wealth transfer system – where the little guy’s pocket is picked daily in the service of minting billionaires on Wall Street – who now increasingly want to rule the rest of us from the White House.

During the 2007 to 2010 financial crisis (caused entirely by Wall Street corruption, lax supervision by the New York Fed and the repeal of the Glass-Steagall Act which allowed Wall Street trading firms to merge with too-big-to-fail, federally insured deposit-holding commercial banks) the New York Fed secretly funneled the majority of the staggering sum of $29 trillion in cumulative loans to shore up insolvent or close to insolvent Wall Street trading houses. It even secretly funneled vast sums to Wall Street firms’ trading units in London and to a dizzying array of foreign banks – all without one vote in Congress or disclosure of these vast sums to the American people. The public only learned about the trillions the Fed had loaned at super cheap interest rates after it lost a multi-year court battle and after Senator Bernie Sanders attached an amendment to the Dodd-Frank financial reform legislation that forced the General Accountability Office to audit these loans by the Fed.

Throughout its history, the overarching mandate of the Federal Reserve has been to provide emergency loans to deposit-taking banks, backed by solid collateral, so that they can continue to provide business and consumer loans to keep the economy functioning and growing. The Federal Reserve’s mandate has never been to prop up the high-risk casino trading houses on Wall Street. But since the repeal of the Glass-Steagall Act in 1999, which allowed the casino trading houses on Wall Street – like JPMorgan Chase, Goldman Sachs, Morgan Stanley and Citigroup – to own federally-insured banks holding the life savings of moms and pops across America, the New York Fed has morphed into Wall Street’s lender of first resort.

As an illustration of just how far the New York Fed has strayed from the original mandate of the Federal Reserve Act, during the financial crisis it operated one program called the Primary Dealer Credit Facility (PDCF). Under that program, it loaned $8.95 trillion in cumulative loans according to the GAO’s audit. Almost two-thirds of the money went to three trading houses on Wall Street: Citigroup received $2 trillion; Morgan Stanley received $1.9 trillion and Merrill Lynch received $1.775 trillion. (See chart below from the GAO report.) And instead of requiring good collateral, many of these loans were backed with stocks and junk bonds at a time when both markets were in a state of collapse.

This is financial hubris at its finest. The New York Fed failed to rein in the risks of these trading houses while it was wining and dining their executives and setting up committees to jointly set “best practices” for the industry, then it secretly bailed out the corrupt firms to the tune of $29 trillion to cover its failures as a supervisor.

With that as background, consider what is happening now as Wall Street On Parade has attempted to use the nation’s Freedom of Information Act (FOIA) to bring some sunshine to the American people on why there is a liquidity crisis in the overnight lending market (repo market) on Wall Street while there seems to be plenty of liquidity to goose the stock market higher.

On October 2 we filed a FOIA with the New York Fed requesting “emails or any other forms of written correspondence from the Federal Reserve Bank of New York to JPMorgan Chase or any of its subsidiaries or affiliates containing any of the following words or phrases: ‘repo,’ ‘repurchase agreements,’ ‘overnight lending,’ or ‘reserves.’ ”

We explained our request as follows:

“It has been revealed in a published report by Reuters that other Wall Street banks are pointing to JPMorgan Chase as a cause of the distress in the overnight repo market because it drew down $158 billion from its cash deposits at the Fed. We are not asking for any protected supervisory records. We are simply asking to see any correspondence that would explain why JPMorgan Chase did this and what the Fed’s reaction was.”

The $158 billion that JPMorgan Chase withdrew from its liquid reserves this year represented 57 percent of its total reserves at the Fed. That is a stunning amount to draw down in a short period of time.

JPMorgan Chase is not just any bank. It is the largest commercial bank in the United States with $1.6 trillion in deposits – representing the life savings of moms and pops, public pension money, retirement funds and business accounts. Unfortunately, JPMorgan Chase also has the distinction of being a recidivist crime actor. In 2014 it pleaded guilty to two criminal felony counts for its role in the Bernie Madoff Ponzi scheme; in 2015 it pleaded guilty to one more criminal felony count for its role in rigging foreign exchange markets; and on September 16, three of its precious metals traders were charged with participating in a racketeering conspiracy for eight years while turning JPMorgan Chase’s precious metals desk into a criminal enterprise. That criminal probe by the U.S. Department of Justice is ongoing.

In 2013 the FBI investigated JPMorgan Chase over the fact that it had used hundreds of billions of dollars in deposits to make risky gambles in derivatives in London, losing $6.2 billion of its depositors’ money along the way. No criminal charges were brought but the bank paid over $1 billion in fines and settlements.

All of this activity has occurred while JPMorgan Chase was being supervised by the New York Fed and while its Board of Directors has, bizarrely, kept Jamie Dimon as Chairman and CEO.

The New York Fed is one of the 12 regional Federal Reserve banks which are owned by their member banks as shareholders. The Federal Reserve in Washington, D.C. is deemed an independent Federal agency but the 12 reserve banks are considered private institutions. However, the New York Fed professes to abide by the FOIA law, which requires a response to a FOIA request within 20 business days.

Our FOIA request was correctly acknowledged by the New York Fed as received on October 2. We should have had a meaningful response on November 1. Instead, we received this reply from the New York Fed on November 1:

“Dear Ms. Martens,

“We are continuing to work on your request. We are in the process of consulting with another department that may have an interest in the determination of your request. Therefore, we are extending the time to respond and expect to provide you with an update by December 5, 2019. Thank you for your patience.

“Sincerely, Corporate Secretary’s Office”

Instead of the 10-day extension that is allowed under the law, we were given more than a month-long extension.

On December 5, we received yet another stonewalling email from the New York Fed, informing us that:

“Dear Ms. Martens,

“Due to the breadth of your request, we are continuing to search for responsive records. We are therefore extending the time to respond and expect to provide you with an update by January 9, 2020. Thank you.

“Sincerely, Corporate Secretary’s Office”

Under FOIA law, the 20 business-day requirement can only be waived under “unusual circumstances” which must be set forth in the letter to the requester. The letter from the New York Fed does not spell out these “unusual circumstances” and mentions only the “breadth of your request,” while failing under the FOIA statute to offer Wall Street On Parade the opportunity to narrow the scope of our request.

In fact, the breadth of the request is quite narrow. It pertains to just JPMorgan Chase and covers just a nine month period with a handful of search words that any competent search system should be able to readily identify.

Our suspicion of the Fed’s motives are raised by what happened to the Bloomberg News reporter, Mark Pittman, when he filed a FOIA with the Fed during the financial crisis. (Pittman died before ever receiving a response.)

Pittman had filed a FOIA with the Fed in April and May of 2008, seeking details of four lending programs, including the borrowers’ names and the amounts borrowed. The programs were the Discount Window, the Primary Dealer Credit Facility, the Term Securities Lending Facility, and the Term Auction Facility. Pittman’s interest was heightened by what was happening at the Fed’s Discount Window. Borrowing had spiked from approximately $250 million a week in prior years to over $100 billion in October 2008.

According to the lawsuit filed by Bloomberg News for the records, here’s how it was stonewalled: On June 19, 2008, the Fed invoked its right to extend the response time to July 3, 2008. On July 8, 2008, the Fed called Bloomberg News to say it was processing the request. The Fed called Bloomberg again on August 15, 2008, wherein Alison Thro, Senior Counsel and another employee, Pam Wilson, informed the business wire service that their request was going to be denied by the end of September 2008. No further communication came, including the denial.

GAO Data on Emergency Lending Programs During Financial Crisis

end

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

(courtesy zerohedge/Chris Powell)

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

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

Dawn Giel | Dan Mangan

Published 3:33 PM ET Tue, 20 Nov 2018 Updated 10:32 AM ET Wed, 21 Nov 2018CNBC.com

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.

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

Submitted by cpowell on Tue, 2019-03-05 14:40. Section: Daily Dispatches

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

…

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 6.9979/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN: 7.0003 /shanghai bourse CLOSED DOWN 5.38 POINTS OR 0.18%

HANG SANG CLOSED UP 40.50 POINTS OR 0.15%

2. Nikkei closed DOWN 131.69 POINTS OR 0.55%

3. Europe stocks OPENED ALL MIXED/

USA dollar index UP TO 97.24/Euro FALLS TO 1.1219

3b Japan 10 year bond yield: FALLS TO. –.01/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 109.51/ 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:: 60.48 and Brent: 65.82

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 DOWN for WTI and DOWN FOR Brent this morning

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.29%/Italian 10 yr bond yield DOWN to 1.26% /SPAIN 10 YR BOND YIELD DOWN TO 0.39%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.55: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.28

3k Gold at $1476.30 silver at: 17.00 7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble DOWN 18/100 in roubles/dollar) 62.58

3m oil into the 60 dollar handle for WTI and 65 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 109.51 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 .9813 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0951 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to –0.29%

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 1.87% early this morning. Thirty year rate at 2.30%

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

6. TURKISH LIRA: UP TO 5.9117..GETTING VERY DANGEROUS..CLOSE TO 6 TO 1 ..

Stocks Set For New All Time High On Trump Impeachment Day

Global stocks hovered just off record highs on Wednesday after climbing for five straight sessions, while S&P futures are gently levitating after getting stuck in a 10 points range for 3 days, as Britain’s pound nursed heavy losses in the wake of renewed Brexit uncertainty, wiping out all of its post-election gains and then some.

With global stocks at all-time highs, after rallying 23% this year and set for their best year in a decade and the fourth-best year ever, and the U.S.-China trade accord announced Friday yet to be signed, traders are finding few reasons to bid prices higher according to Bloomberg. The silver lining: the outlook for US monetary policy remains steady – two Fed officials repeated that interest rates are on hold indefinitely – yet yesterday’s miserable results from FedEx were a reminder of the headwinds to growth.

FedEx Corp reported Q4 19 Adj EPS USD 2.51 vs. Exp. 2.84, Revenue USD 17.3bln vs. Exp. USD 17.69bln. Co. cut its FY 20 EPS to USD 9.10-10.35 vs. Prev. USD 10.00-12.00. Co. said quarterly results declined due to weak global economic conditions, higher ground costs, loss of business from a large customer. FDX Shares declined almost 7% in after-market trade.

“We are a little bit cautious going into 2020, not getting too carried away with the optimism that the equity markets are displaying right now,” said OIC managing director Susan Buckley. “We are still looking at an outlook of slow growth in 2020.”

“I expect markets to end the year quietly but mildly positively, especially if the PBoC does nibble down the lending interest rate later this week,” said Chris Bailey European strategist at Raymond James. “Bigger challenges naturally await for next year … but I think traders and investors will be happier to grapple with these actually in 2020.”

US equity futures pointed to a directionless open a day after the S&P 500 Index closed just one index point higher at a new record high for the 4th straight session thanks to stronger factory and housing data. However FedEx plunged again on dismal earnings and catastrophic guidance for the second straight quarter, dragging down transport and logistic stocks. Meanwhile, the Emini has traded in the range 3,190 to 3,200 for three straight days.

The Stoxx Europe 600 Index fluctuated with country benchmarks mixed, fading all early gains as Germany’s Dax underperformed even as data showed business expectations improved for a third month.

French PSA Group rose and Fiat Chrysler Automobiles was steady after the auto giants agreed to combine in a deal to create the world’s fourth-biggest auto manufacturer. Volvo Group rallied after agreeing to sell its UD Trucks unit to Isuzu Motors Ltd. for about $2.3 billion. Luxury TV and stereo maker Bang & Olufsen plunged after issuing its fourth profit warning in a year.

Earlier in the session, Asian stocks drifted near an 18-month high, as investor weighed strong U.S. factory data against rising concerns about a hard Brexit. Markets in the region were mixed, with Thailand up and Japan down. Energy producers led gains while industrial companies retreated. The Topix slipped, driven by drug makers and electronic firms. Japanese exports dropped for a 12th straight month in November, dragged down by value of cars and construction and mining equipment. The Shanghai Composite Index slipped, ending a three-day rising streak; China Yangtze Power and China Life Insurance were among the biggest drags. India’s Sensex advanced, heading for a new record, as HDFC Bank and ITC offered strong support.

Today the political drama comes to a crescendo, as President Donald Trump is set to be impeached after the House votes on two articles that will likely set up a January trial in the Senate, where he’s expected to be acquitted. Helping Trump is the dramatic improvement in economic sentiment, and as reported yesterday, BofA Global Research’s latest survey of fund managers showed that a record surge in global growth expectations over the last two months had drastically cut recession worries.

While few expect the Republican-dominated Senate to force Trump from office, the impeachment process could focus investors’ attention on next year’s U.S. election risks.

Meanwhile, across the Atlantic, newly-elected British Prime Minister Boris Johnson has spooked markets by taking a hard line on Brexit talks. Johnson will use the prospect of a Brexit cliff-edge at the end of 2020 to demand the EU give him a comprehensive free trade deal in less than 11 months. The threat of a hard exit sent shivers through sterling, which slid 1.5% on Tuesday in its largest one-day fall this year. It then extended losses on Wednesday after tumbling Tuesday on renewed concern that a no-deal Brexit is possible, though it trimmed Wednesday’s decline when U.K. inflation came in steady. It fell another 0.2% on Wednesday and was last just below $1.31. The currency has shed all the gains made during the Conservative Party’s big election win.

“Johnson’s move aimed at cancelling the possibility of an extension, has essentially increased the possibility of a no deal Brexit,” said Rodrigo Catril, a senior FX strategist at NAB. “It suggests sterling’s path in 2020 looks set to be a volatile one, a hard Brexit cannot be ruled out, but the probability of a positive Brexit resolution has also increased.”

Elsewhere in FX, the euro was a shade softer at $1.1134, while Japan’s yen was little changed at 109.56 per dollar. The Turkish lira hit its weakest level against the dollar in more than two months after the U.S. Senate passed legislation with provisions to punish Ankara, raising concerns about already strained ties with Washington. It marked the lira’s fourth day of falls. The Turkish currency has lost more than 11% this year after a currency crisis chopped its value by 30% in 2018.

In commodities, oil prices eased from three-month highs as data showed U.S. crude stocks rose unexpectedly in the most recent week.

Looking at the day ahead we’ll get the final Euro Area CPI and core CPI readings for November, along with Canada’s CPI data. Meanwhile from central banks, there’s an ECB colloquium held in honour of Benoît Cœuré, whose 8-year term on the ECB’s Executive Board concludes at the end of the year. The conference will feature remarks from Cœuré himself, along with the ECB’s Lagarde and the Fed’s Brainard. Later on in the day, we’ll also hear from the Fed’s Evans.

Market Snapshot

S&P 500 futures up 0.08% to 3,194.50
STOXX Europe 600 up 0.2% to 415.84
MXAP down 0.05% to 170.37
MXAPJ up 0.2% to 550.15
Nikkei down 0.6% to 23,934.43
Topix down 0.5% to 1,738.40
Hang Seng Index up 0.2% to 27,884.21
Shanghai Composite down 0.2% to 3,017.04
Sensex up 0.5% to 41,565.09
Australia S&P/ASX 200 up 0.06% to 6,851.42
Kospi down 0.04% to 2,194.76
German 10Y yield rose 1.5 bps to -0.28%
Euro down 0.1% to $1.1139
Italian 10Y yield fell 2.2 bps to 1.104%
Spanish 10Y yield unchanged at 0.392%
Brent Futures down 0.6% to $65.71/bbl
Gold spot up 0.2% to $1,478.38
U.S. Dollar Index up 0.04% to 97.26

Top Overnight News from Bloomberg

German business expectations improved for a third month in December, a sign manufacturers are starting to see a way out of a yearlong downturn. The Ifo Institute’s gauge rose the most since mid-2018 to 93.8, exceeding most estimates in a Bloomberg survey. The measure of the current situation rose, as did the overall business climate indicator
Donald Trump’s legacy will be forever marked on Wednesday by his impeachment at the hands of House Democrats, who say it’s a necessary rebuke for the president’s pursuit of a political vendetta. On the eve of the vote, Trump defiantly rejected the move as a predetermined partisan assault
Sweden’s pension industry is about to get its first taste of life after negative interest rates. Funds with a total of about $630 billion in assets have a lot at stake as their central bank becomes the first to exit the experimental monetary policy
The Bank of Thailand held its benchmark interest rate steady at an all-time low and cut its forecasts for economic growth, saying it was gauging whether further efforts were needed to restrain the local currency
The ECB’s Single Supervisory Mechanism will likely lift the ceiling on Greek banks’ holdings of the country’s sovereign bonds, people familiar with the situation said
PSA Group and Fiat Chrysler Automobiles NV agreed to combine to create the world’s fourth- biggest carmaker, in the biggest automotive deal since Daimler acquired Chrysler two decades ago. The French and Italo-American carmakers will each own half of the new company with global sales of 8.7 million vehicles.

Asian equity markets traded mixed as the region lacked conviction in the absence of any fresh catalysts and following a relatively quiet session on Wall Street heading into the holiday season, where stocks consolidated around record highs due to the improved trade climate and after several encouraging tier-2 data releases. ASX 200 (+0.1%) and Nikkei 225 (-0.5%) were mixed as defensives just about offset the losses in miners, tech and financials to keep Australia afloat, while sentiment in Tokyo was weighed by adverse currency flows and mixed trade data in which Exports contracted for a 12th consecutive month albeit at a slightly narrower than expected decline. Hang Sang (+0.1%) and Shanghai Comp. (-0.2%) were indecisive amid diminishing effects from the US-China phase one agreement, while the PBoC’s first liquidity injection in 21 sessions also failed to spur prices despite announcing a total of CNY 200bln via 7-day and 14-day reverse repos at a reduced rate (2.65% vs Prev. 2.70%) on the 14-day operation. Finally, 10yr JGBs were higher following the bull-steepening in the US and with the BoJ also in the market for over JPY 1.1tln of JGBs in 1yr-10yr maturities, but with advances restricted as the BoJ kick starts its 2-day policy meeting.

Top Asian News

Insurance Scandal Destroyed Trust in Japan Post, Panel Finds
Macau Chooses China Riches Over Democracy, Unlike Hong Kong
Japan’s Budget to Top 100 Trillion Yen Again, Document Shows
Xi Says Willing to Talk to Macanese on Issues of Common Concern

A choppy day thus far for European stocks [Eurstoxx 50 +0.2%] following on from a mixed APAC session as markets quietened ahead of the Christmas holidays. Sectors are broadly mixed with some underperformance seen in consumer discretionary whilst staples outperform. The session has been mostly driven by individual stock movers – Fiat Chrysler (-0.1%) and Peugeot (+1.2%) have officially announced an agreement for a 50/50 merger in a EUR 50bln deal – with annual run-rate synergies expected at around USD 3.7bln. Before the deal is closed, Fiat Chrysler stated it will distribute a special dividend of EUR 5.5bln while PSA will distribute to its shareholders its 46% stake in Faurecia (-1.5%). Further, Fiat Chrysler notes that its robot-making unit Comau is to be spun off after the merger. Elsewhere, FTSE-listed NMC Health (-0.5%) opened higher to the tune of 10% (following yesterday’s 20% drop) after the Co. reaffirmed its guidance and announced a GBP 200mln share buyback programme in response to Muddy Water’s negative note. Meanwhile, postal names including Deutsche Post (-0.7%), Royal Mail (-2.8%) and Austrian Post (-0.7%) all experience headwinds from FedEx’s (-7.4% pre-market) earnings last night which saw the company downgrade its EPS forecast alongside dismal earnings, citing weak global economic conditions. Elsewhere, Volvo (+4.1%) shares are supported after the Co. and Isuzu Motors (7202 JT) are mulling a strategic alliance. Volvo sees a positive impact on operating profit of SEK 2bln from the alliance. Finally, further angst for Scandi banks after the Swedish FSA opened as opened a sanctions case against the Co. and a probe into SEB’s (-1.6%) governance and control of measures to combat money laundering. FSA plans to communicate the outcome of the case in April 2020.

Top European News

German Business Outlook Improves as Slow Year Draws to Close
Macron’s Government Renews Talks to End Pension Reform Gridlock
U.K. Inflation Holds at Three-Year Low as BOE Decision Looms
ECB May Let Greek Banks Buy More of Country’s Sovereign Debt

In FX, the broad Dollar and Index remains in positive territory thus far in a continuation of the upside seen overnight, with the DXY meandering just under current weekly highs and its 50 WMA, both near 97.360 – somewhat of a barrier in recent trade. News-flow on the US-Sino front has been quiet overnight, with US Treasury Secretary Mnuchin singing from the same hymn sheet as recent WH officials. Nonetheless, the lack of details regarding the Phase One deal has prompted caution among traders and investors. This tone is reflected in CNY and CNH, with the offshore choppy on either side of 7.000 vs. the USD and with a lack of conviction and awaiting further headlines. Meanwhile, today’s docket sees little by way of State-side data, although speakers include Fed’s Board of Governor member Brainard and 2020 non-voter Evans.

EUR, GBP – Both trading modestly softer vs. the Buck and flat against each other. Sterling has held onto a bulk of yesterday’s losses and dipped below 1.3100 overnight before finding a base at around 1.3070 – with little reaction seen in light of mixed UK inflation metrics, in which headline CPI modestly topped forecasts alongside RPI, albeit PPI printed sub-par ahead of the BoE’s monetary policy update tomorrow. Elsewhere, EUR/USD saw very mild solace upon the German Ifo’s rosy release with all three metrics beating forecasts and priors seeing revisions higher. The institute added that the German Q4 German GDP is likely to increase by 0.2%. Aside from that, the Single Currency was little swayed by mostly unrevised EZ CPI figures with EUR/USD choppy within a tight 1.1127-54 intraday band (having retreated further below its 200 DMA at 1.1152). That said, decent option expiries may prompt some action amid holiday-thinned trade – with EUR 1.3bln expiring between strikes 1.1125-35 and a further EUR 1.6bln between 1.1140-50.
AUD, NZD, CAD, JPY – All flat and within tight ranges vs. the USD in early EU trade, albeit more on the back of a firmer Buck as opposed to individual weakness – with the high beta on standby for their respective tier one data/events (aside from trade news-flow). AUD/USD hovers around 0.6850 at time of writing ahead of the much-anticipated Aussie jobs data due overnight as an indication of the RBA’s next policy move. Similarly, its Kiwi counterpart remains relatively sideways and just north of 0.6550 and ahead of its 50 WMA (0.6585) with NZ Q3 GDP on the radar. USD/CAD remains just above the 1.3150 mark and with little inspiration from softer energy prices as the Loonie looks ahead to its November CPI readings – with headline YY seen ticking higher in the month. Analysts at JPM believe that the USD/CAD risk-reward remains skewered towards to the topside as the bank sees the BoC reducing rates at least once next year – “CPI sticking around target shouldn’t challenge that, but if it were to come off, then it would be another excuse to cut”, JPM says. Finally, USD/JPY trades lacklustre just under the 109.50 mark ahead of the BoJ Monetary Policy Decision due to be released sometime during the Tokyo lunch break (Full preview available on the Newsquawk headline feed).
EM – The Turkish Lira has seen renewed weakness after US senate passed a defence bill calling for Turkey sanctions over its purchase of the S-400 defence system – a bill which now falls into the hands of US President Trump for signing. The Turkish Defence Ministry responded that the bill contained hostile elements towards Turkey, in a sign that the relationship between the two countries are further deteriorating. USD/TRY has gained 5.900+ status to a high of 5.9200 (vs. low of 5.8829). Meanwhile, the ZAR experienced some weakness in early EU trade following source reports that the US is to review South Africa’s trade status at the end of January next year. USD/ZAR has pared back earlier upside, potentially on stabilisation on the Eskom front – which expects no loadshedding today despite constrained systems.

In commodities, WTI and Brent are around USD 0.50/bbl lower at present but remain above the USD 60/bbl and USD 65/bbl levels respectively. News-flow for the crude complex, and generally, has been light this morning with price action continuing to be dictated by the surprise API build of 4.7mln barrels (Exp. draw 1.2mln barrels); ahead of today’s EIA release where expectations are for a headline draw of 1.288mln barrels. Looking ahead, UBS note that a extended period of inventory builds often begins in Q1 due to the gap between winter demand and US driving season; which, while expected they believe may prompt some profit taking. Elsewhere, spot gold is firmer by just shy of USD 3/oz and resides near the top of the sessions range, but remains below yesterday’s high of USD 1480.35/bbl. Finally, copper prices remain within a narrow range for the session given a quiet APAC session and no further updates, as of yet, on the US-China front.

US Event Calendar

7am: MBA Mortgage Applications -5.0%, prior 3.8%

DB’s Jim Reid concludes the overnight wrap

Welcome to my last EMR of the decade. Am doing the dreaded 750 mile drive to the Alps tomorrow with the car bursting full of kids presents, clothes, toys and of course Bronte the dog. I have been allocated a one square foot area for all my luggage with a special dispensation if my luggage contains presents for my wife. Thanks for all the interactions, feedback and support this year and this decade. Let’s make a vow to stay together over the next decade. Happy Xmas and NY to you and all your loved and even less loved ones. Henry will be in the EMR hot seat for Thursday and Friday before a two week break in publication.

Talking of the next decade a reminder that our Imagine 2030 Konzept magazine was out recently where we ponder what life will be like as we welcome in the following decade. We published this on our client site here and our public site here. Feel free to forward on to clients, friends and family. We’ve had approaching 50,000 downloads which is by far the highest of any Konzept. To be fair I’ve got a flavour of its reach as I’ve been bombarded by every Crypto obsessive on the planet since the publication given my assertion that we may be rebelling away from fiat money by the time 2030 arrives.

For now the central bank liquidity that will eventually threaten fiat money is helping to drive a Santa rally. However yesterday was a day for Santa to have a rest and recharge his batteries with probably the biggest story being the reversal of Sterling following the story we discussed yesterday about Prime Minister Johnson’s plans to enshrine in law the drop dead date of end 2020 for the U.K. to exit the transition period with or without a trade deal.

Sterling was down by around -1.5% yesterday against the Dollar and the Euro and is now below levels seen just before the exit poll prediction of a big Tory majority, extending its losses slightly this morning. Indeed, yesterday was the worst day for sterling against both currencies since November 2018. I wish I’d have changed my holiday money a day earlier. DB’s Oli Harvey, who cautioned on chasing the currency immediately after the election, turned bearish on Sterling after the transition news and targets 0.9 on EUR/GBP (currently c.0.849). See his report here for more including how the risks of a 2020 U.K. recession and rate cut have gone up. Overnight S&P have taken the negative outlook away from the U.K. and given it a stable one on what they see is the removal of some uncertainty. Earlier Fitch had removed the negative credit watch but kept a negative outlook. Sterling is largely ignoring this and is edging lower again this morning (-0.2%). In our monthly investor survey (link here), out of a list of 10-15 major currencies Sterling was the most favoured (25%) over the next 12 months and also the second least favoured (15%). So it’s fair to say we’re probably in for another volatile year for the pound.

This U.K. news occurred alongside the phase-one relief rally running out of steam even if US markets still inched to another record high yesterday, as the S&P 500 ended up +0.03%, while the Dow Jones (+0.11%) and the NASDAQ (+0.10%) also saw modest upward moves. There weren’t any obvious catalysts to write about, but the moves came alongside a number of strong data releases from the US, particularly on housing, with housing starts up to 1.365m (vs. 1.345m expected), and building permits up to 1.482m (vs. 1.410m expected), their highest level since May 2007. Industrial production also beat expectations, up +1.1% (vs. 0.9% expected) in November, the biggest mom increase since October 2017. Other risk assets also benefited, with Brent Crude up around a percent to a fresh 3-month high, though it was a more downbeat story in Europe, where the Stoxx 600 ended a run of 4 successive upward moves to close down -0.68%. Thanks to the weaker currency, the multinational FTSE 100 (+0.08%) outperformed, although the more domestically-oriented FTSE 250 underperformed, ending the session down -1.05%, its worst day since October.

In fixed income, European sovereign debt advanced while US was flat.10yr Yields on bunds (-1.9bps), OATs (-1.6bps) and BTPs (-2.3bps) all fell. Notably, the 2s10s curve in the US steepened around a basis point further, to 25.3bps, its steepest level in over a month.

Overnight in Asia, the Nikkei has slipped from yesterday’s one-year high, currently trading down -0.41%. Other indices have also lost ground, with the Hang Seng (-0.08%), the Shanghai Comp (-0.08%) and the Kospi (-0.12%) all slightly lower. Elsewhere, S&P 500 futures are currently flat while Brent Crude is down -0.53%, falling back from the 3-month high reached yesterday.

Onto central banks, and we got another tweet from President Trump yesterday, who reiterated his calls for easier monetary policy, saying “Would be sooo great if the Fed would further lower interest rates and quantitative ease. The Dollar is very strong against other currencies and there is almost no inflation. This is the time to do it. Exports would zoom!” We also heard from Dallas Fed President Kaplan, who said that “at the moment, whereas I thought earlier in the year risks were to the downside, I’d say they’re more balanced.” He also said that “I’d be willing to tolerate some overshoot of the 2% target as long as it’s not persistent”.

As an interesting aside, given I’m off to the French Alps I’ve been keeping an eye on the French nationwide strikes. Fortunately for me DB’s Marc de-Muizon published a Q&A on the dispute which has reforms to the French pension system at the heart of it. See the link here for more. (link here). He talks about the main issues involved, including the differences between the current and the proposed systems, the reasons behind the protests and whether the government will push onwards. He writes that he expects the government will continue with the reforms, but “some further concessions will probably be needed.”

We started today with the U.K. so let’s end the decade with the UK. The jobs data out yesterday beat expectations, with employment up +24k (vs. -14k expected) in the three months to October compared with the previous three-month period, sending the 16-64 year old employment rate up to 76.2%, its highest level since records began in 1971. The unemployment rate remained at 3.8% (vs. 3.9% expected), while average weekly earnings growth (excluding bonuses) fell a tenth to +3.5% (vs. +3.4% expected). Finally on the UK, Bloomberg reported yesterday that the UK government was close to making its decision on the next Bank of England governor, with the incumbent Governor Carney due to leave the BoE at the end of January. The report said the appointment could come as soon as this week.

To the day ahead now, and the main data highlight comes with the December Ifo survey from Germany, before we get UK inflation data for November. Staying with the inflation theme, later on we’ll then get the final Euro Area CPI and core CPI readings for November, along with Canada’s CPI data. Meanwhile from central banks, there’s an ECB colloquium held in honour of Benoît Cœuré, whose 8-year term on the ECB’s Executive Board concludes at the end of the year. The conference will feature remarks from Cœuré himself, along with the ECB’s Lagarde and the Fed’s Brainard. Later on in the day, we’ll also hear from the Fed’s Evans.

3A/ASIAN AFFAIRS

I)WEDNESDAY MORNING/ TUESDAY NIGHT:

SHANGHAI CLOSED DOWN 5.38 POINTS OR 0.18% //Hang Sang CLOSED UP 40.50 POINTS OR 0.15% /The Nikkei closed DOWN 131.69 POINTS OR 0.55%//Australia’s all ordinaires CLOSED UP .09%

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

b) REPORT ON JAPAN

3 C CHINA

CHINA

A must read…the big hole in the Chinese trade agreement not discussed: contracts cannot be encrypted.

What a joke

((Gordon Chang/Gatestone)

The Big Hole In The China Trade Agreement

Authored by Gordon Chang via The Gatestone Institute,

There’s something missing from the “Phase One” trade agreement with China, announced Friday. And it’s something critically important. Yet, Larry Kudlow, President Trump’s director of the National Economic Council, appeared not to know about it afterwards.

“We will see,” said Kudlow in response to Maria Bartiromo on “Sunday Morning Futures,” her Fox News Channel show, as she asked him about Beijing’s new “cybersecurity” rules.

“There’s a large IP chapter in this deal and there’s also a large forced technology transfer chapter in this deal. I don’t think we know enough about these new Chinese rules and we’ll have to look at that and by the way if they do violate them of course we will take action.”

Bartiromo was referring to two sets of Chinese rules.

On December 1, Beijing implemented the Multi-Level Protection Scheme 2.0, issued pursuant to the 2016 Cybersecurity Law.
On January 1, China’s Cryptography Law becomes effective.

These measures prohibit foreign companies from encrypting data so that it cannot be read by the Chinese central government and the Communist Party of China. Businesses will be required to turn over encryption keys. Companies will not be able to employ virtual private networks to keep data secret, and some believe they will no longer be allowed to use private servers.

Together, these measures allow Beijing to take all the data and communications of foreign companies.

Beijing’s complete visibility into the networks of foreign companies will have extremely disadvantagious consequences. For instance, Chinese officials will be permitted, under Chinese law, to share seized information with state enterprises. This sharing means the enterprises will weaponize the information against their foreign competitors.

Moreover, China’s officials, once they have encryption keys and access to the China network of a foreign firm, will be in a good position to penetrate the networks of that firm outside China. Therefore, Beijing will soon steal data stored on foreign networks and put companies, like Nortel Networks, out of business or ruin them to the point where Chinese entities can buy them up at reduced prices. Do we really want the Fortune 500 to be owned by China?

The U.S. Trade Representative’s skimpy Fact Sheet for the Phase One deal does not address the December 1 and January 1 rules. There is, of course, no point in including in the trade deal forced taking and intellectual property protections if they do not cover the cybersecurity rules.

Judging from Kudlow’s nonspecific response to Bartiromo and his admission of not knowing much about “these new Chinese rules,” the administration apparently has not considered the linkages between them and the trade deal. If that is indeed the case, the Phase One deal will be pointless. Anything — information, data, communications, trade secrets, or technology — protected under its terms will nonetheless be available to Chinese authorities pursuant to the December 1 and January 1 rules.

The remedy? President Trump can pull out of the Phase One deal — something he should do anyway — or use his considerable powers under the International Emergency Economic Powers Act of 1977 to prohibit American companies from complying with the new cybersecurity rules or from storing data in China. On August 23, Trump threatened to use the act to force companies out of that country.

Washington will have to do something fast to protect American businesses in China — and the American economy — because the Phase One deal is clearly inadequate. There is, after all, a big hole in the center of it.

END

CHINA

China’s EV sales plunge in November as the global auto market continues in a tailspin

(zerohedge)

China EV Sales Plunge In November Amid Turmoil In Global Auto Market

New electric vehicle (EV) sales in China plunged in November for the fifth consecutive month, extending a decline that we’ve been highlighting for the past 1.5 years.

Last month, we noted how China’s EV bubble continues to deflate, mostly due to a reduction in government subsidies over the summer.

China’s EV slump in November was shocking, and sales plunged 43.7% on year to 95,000 units after October recorded one of the fastest declines for the year, reported China Association of Automobile Manufacturers (CAAM).

CAAM said last month that EV sales plunged 45% in October Y/Y.

“Because of the insufficient demand of the domestic market, the pressure for automakers to upgrade their technology to the national standard, and the major subsidy cuts for new energy vehicles, the recovery of production and sales is still limited,” said Chen Shihua, assistant secretary-general of CAAM.

CAAM warned that the EV market would continue to deteriorate through 2020. It won’t be until the global economy troughs that the industry could stabilize.

The slowdown also hurt battery manufacturers as the EV slump in China weighs on Lithium prices.

At a press conference on Thursday, CAAM said China’s overall auto sales are expected to dip 2% to 25.3 million units.

And while China’s overall auto market continues to rapidly slow, Tesla has started to unveil some of its Chinese-built vehicles last month.

Of course, Tesla is setting up shop at the time when the EV market is going bust, and the overall auto industry wanes.

As we’ve mentioned before, China is the epicenter for the global auto market, and partly the reason why the industry is sliding into a recession.

In a series of charts, Bloomberg shows the current crosscurrents affecting auto markets in top regions.

The first shows that global auto sales peaked two years ago at slightly under 86 million on an LTM basis. In October, that number stood at 78 million, a decline of about 9%.

The second chart shows trends from across the globe, noting that since China’s market is so big, that it is been obscuring falling trends elsewhere in the world.

The chart shows China, Asia ex-China, North America, Europe, Latin America and Africa/Middle East all in steep downtrends.

North America and Europe could be argued to the be healthiest regions out of all of these, but the trends are still moving in the wrong direction.

Looking deeper into Asia ex-China, which still includes major countries like Japan and India, we see that all other markets across the continent are lower. Japan is the healthiest, relative to others, and South Korea, Malaysia and Singapore are all within 10% of their peak.

The third chart sums up the grim picture across Asia, despite these small points of optimism.

And finally, China’s EV bust shows how government subsidies fueled a bubble that is now imploding.

Recall, as we reported days ago, it’s looking like Beijing isn’t so excited to help sustain the EV niche of the market anymore.

The EV boom in China appears to be over at the moment, this could be bad news for Tesla, but more importantly, the overall auto industry continues to wane, which means the global economy will likely remain stagnate in 2020.

END

The author correctly comments that if China purchases huge amounts of agricultural products then other countries will be the big losers and it sure looks like Europe will be the big loser

/(Strategic Macro blog/zerohedge)

Are Eurozone Manufacturers The Big Losers In The US-China Trade Deal?

Via Strategic Macro blog,

So unless something dramatic happens with the Chinese economy, if they comply with the US trade deal, they will be buying $100bn more from the US and less from someone else each year for the next two years.

As I discussed here, the developments so far in the trade war have backfired on the US. China’s trade surplus is up $85bn in 10 months or $102bn annually for 2019. Europe has been the dumping ground for $60bn annualised in manufactured goods that would have gone to the US. The reduction from 15% to 7.5% on $120bn in goods might alleviate that a little, but only a little.

Per the deal, the Chinese will buy $100bn a year more in goods and services. China bought $130 billion in U.S. goods in 2017, before the trade war began and $56 billion in services. That’s a 54% step change, which is not happening organically as a function of 6% Chinese economic growth.

As such, the Chinese government will have to pull levers and third countries have to lose export orders. In terms of manufactured goods the only games in town are the EU, Japan and Korea. The IMF in their recent Article 4 paper on China estimated that about half of the import displacement would be born by Europe.

In the chart below, the IMF had assumed a $200bn/ year deal to halve the US trade deficit with half of that falling on the Eurozone.

Based on a $100bn a year deal the EU would lose about $42bn a year in goods exports. Korea and Singapore could potentially lose exports amounting to about 1% and 1.9% percent of their GDP.

Looking at the phase 1 deal numbers, China has committed to increase purchases of U.S. agriculture products by $32 billion over two years. That would average an annual total of about $40 billion, compared to a baseline of $24 billion in 2017 before the trade war started.

So if we deduct $16bn in Ag purchases from the $100bn, that leaves $84bn in goods and services. Its easier for the Chinese government to encourage goods substitution over services, so let’s assume it’s 75% goods 25% services, vs a 70%/ 30% balance between manufacturing and services in their existing US imports.

$84bn in imports x 75%, x Europe’s 50% share totals $31.5bn in potentially lost Eurozone manufacturing exports.

So Eurozone goods manufactures face the combination of $31.5bn of high end manufacturing export losses and $60bn in lower to mid-end manufacturing product dumping, or potentially even higher.

That’s a total of $91.5bn in final demand loss. Eurozone manufacturing is 16.6% of the Eurozone’s $13.7Tn economy. That is $2.27Tn. So a final demand shock loss of $91.5bn is 4% of manufacturing output. Plus some additional losses in agricultural exports.

The Japanese and Korean exporters who will shoulder most of the balance of the export loss will also be looking to sell products into Europe.

That is catastrophic at a time of existing contraction. It will also be felt unevenly. I don’t see many Chinese cars being bought in Europe or European companies losing car exports. But clothes and consumer goods will be dumped by China and Eurozone industrial equipment producers will lose export orders.

Needless to say the Eurozone manufacturing and industrial sectors have already been contracting for some time with November PMIs confirming continued weakness:

Source: MarkIt

I had predicted a year ago that Europe could be facing a perfect storm driven be a hard Brexit, product dumping as a result of the trades wars, central bank tightening and weak final demand. While demand is still weak and manufacturing has contracted, hard Brexit was avoided and monetary tightening has turned to stimulus. After the December 2018 risk off, risk has rallied this year, looking at the Dax YTD you would think Europe was booming, not kabooming!

But we still haven’t seen what the impact of a FTA-based Brexit is. The UK is already one of the most popular FDI destinations in Europe and that could increase as a result of Brexit and the potential for an investment led industrial boom.

The US could also ultimately apply tariffs in its trade dispute with Europe and Europe with no real WTO recourse would have to follow suit.

So it looks like a new down leg is nearly on us for the Eurozone and Lagarde needs a crisis to get traction for a green new deal and fiscal reflation/ MMT policies.

China may also not comply with this deal, given the unrealistic size and time frames involved and by mid-2020 the outcome might look like ‘go-slow’ from the US perspective.

That would leave Trump, mid-election campaign, accused of either failing in his objectives or being forced to put tariffs back on. We know his typical response function to not getting his way.

end

China will not rush into buying USA farm products

(zerohedge)

China Won’t Rush Into Buying US Farm Products Under Phase One Deal, Warns US Trade Advisor

Tom Kehoe, an adviser to the US Department of Agriculture and US trade representative Robert Lighthizer, said the Chinese aren’t going to rush into agriculture purchases under the phase one deal, reported the Shanghai Morning Post.

“These are businesspeople,” Kehoe said.

“They are going to have to be in a competitive situation. Otherwise, they are not going to buy it.”

Kehoe said the Chinese had been more frequently sourcing farm products from Brazil and Argentina, where currencies have been weakened thanks to the global slowdown. Shown below, there’s an abundance of vessels carrying farm products from South America to China versus a relatively quiet North America.

Spot prices for US farm products have been elevated this month, due to the prospects of a trade deal.

A stronger dollar, hovering above the 97-handle, has also made US farm products more expensive than the rest of the world.

Chinese importers are businesspeople – they need to make a spread, and will certainly not overpay for US farm products while they can buy the same products in South America for a discounted price.

China stressed last week that its agriculture buys will be based on market conditions and will source agriculture products from the US and other countries.

Beijing has promised to purchase $16 billion annually in commodities on top of the pre-trade war level of $24 billion and could buy as much as $50 billion annually, Lighthizer said last week.

There’s just one problem: as explained by former USDA Chief Economist and USTR ag negotiator, Joe Glauber, Beijing’s promise to quadruple US agricultural purchases to $50 billion is impossible (a detailed explanation can be found on the thread below).

Given the execution risks going forward of the Chinese fulfilling their pledge of purchasing US farm products in the year ahead, highlighted by Kehoe, it seems that a strong dollar and elevated spot prices could force Chinese importers to continue sourcing from South America.

end

4/EUROPEAN AFFAIRS

Finally we have a government condemning the anti _Israel boycott (BDS movement) by stating it is anti semitic.

(Kern/Gatestone)

Austrian Parliament To Declare BDS Movement As Anti-Semitic

Authored by Soeren Kern via The Gatestone Institute,

All of the major parties represented in the Austrian Parliament have agreed to support a resolution condemning the anti-Israel Boycott, Divestment and Sanctions (BDS) movement as anti-Semitic.

The measure calls on Austria’s federal government to fight anti-Semitism and anti-Zionism, and to withhold any form of financial and other state support from anti-Semitic organizations and advocates of BDS principles.

The resolution will be submitted to the lower house of Parliament, the National Council, in January 2020. It is expected to be passed with an overwhelming majority. While anti-BDS laws have been passed in Vienna and Graz, the largest and second-largest cities in Austria, this would be the first time that such a measure is enacted at the federal level.

On December 11, legislators from all five major parties — including the left-leaning Greens and the right-leaning Freedom Party (Freiheitliche Partei Österreichs, FPÖ) — formally agreed to co-sponsor the resolution, which is being spearheaded by Sebastian Kurz, a former (and most likely the next) chancellor of Austria who also leads the center-right Austrian People’s Party (Österreichische Volkspartei, ÖVP). The resolution states:

“Anti-Semitism has existed since antiquity, although the term itself was not used until the 19th century. The core, however, was always the same: it was — and is — the fomenting of prejudices and hatred in word and deed against Jews. Throughout history they have been victims of violence and exclusion, which reached a devastating climax in the murderous cruelty of National Socialism and the declared goal of the systematic destruction of Jewry by the Nazi regime.

“In total, more than six million Jews, many of them children, fell victim to the Shoah. They were murdered in the extermination camps by poison gas or otherwise. But even this unimaginably cruel genocide and the memory of it has not caused many people to rethink, and so Jews, even in the present, are exposed, once again, to hate and prejudices, which in the worst cases culminate in violence.

“In a survey of 16,500 Jewish Europeans in 12 European countries conducted by the EU’s Fundamental Rights Agency in May/June 2018, highly alarming findings emerged: nine out of ten respondents said that anti-Semitism had intensified, and one-third were considering emigrating.

“The European Parliament’s Working Group on Anti-Semitism (EP WGAS) has already done valuable work. In June 2017, an anti-Semitism resolution was adopted by a large majority in plenary. The text included calling for all EU Member States to adopt the definition of anti-Semitism developed by the International Holocaust Remembrance Alliance (IHRA) and to train their police and judicial authorities on how to prosecute anti-Semitism. Austria was one of the first EU Member States to adopt this IHRA working definition of anti-Semitism by a resolution of the Council of Ministers on April 21, 2017.

“The Austrian Presidency of the EU unanimously adopted a declaration on combating anti-Semitism and developing a common approach to security for Jewish communities and institutions during the Justice and Home Affairs Council on December 6, 2018. The European Council welcomed this statement in its conclusions of December 13 and 14, 2018. This path must continue to be pursued consistently.

“Also, in 2018, the President of the National Council, Wolfgang Sobotka, commissioned a study to understand the level of anti-Semitic sentiments in Austria. The result of this study is that 10% of Austrians are manifestly anti-Semitic and 30% are latently anti-Semitic. The percentages are alarmingly higher among the Turkish and Arabic-speaking people who were born in Austria or have lived with us for more than ten years.

“According to the IHRA anti-Semitism definition adopted by Austria, the State of Israel, which is understood as a Jewish collective, may be the target of anti-Semitic hostility, such as the rejection of the right of the Jewish people to self-determination, collective responsibility of Jews for acts of the State of Israel, or comparisons between current Israeli politics and Nazi policies.

“The ‘Boycott, Divestment and Sanctions’ (BDS) movement, which has increasingly appeared in Austria in recent years, makes use of this anti-Semitic pattern: This movement calls for a boycott of the Jewish state, of Israeli products and companies, of Israeli artists, scientists and athletes. It demonizes and measures Israel by double standards, makes Austrian Jews jointly responsible for Israeli politics, and by calling for the right of return for Palestinian refugees and all their descendants, it questions the right of existence of the Jewish state.

“For Austria, Israel’s right to exist is non-negotiable, and any form of anti-Semitism, including Israel-related anti-Semitism, is unacceptable and must be severely condemned. Of course, factual criticism of individual measures by the government of Israel must be allowed.

“The National Council strongly condemns all forms of anti-Semitism, including Israel-related anti-Semitism, and calls on the federal government to resolutely and consequently confront these tendencies.

“The federal government is further requested:

to develop a holistic strategy to prevent and combat all forms of anti-Semitism, with close involvement of all relevant bodies, as part of its strategies to prevent racism, xenophobia, radicalization and violent extremism;

to strongly condemn the BDS movement and its goals, in particular the call for a boycott of Israeli products, companies, artists, scientists or athletes;

to not provide premises and infrastructure to organizations and associations that use anti-Semitic rhetoric or question Israel’s right to exist;

to not support, financially or otherwise, events of the BDS movement or groups that pursue similar goals;

to maintain Austria’s role as an excellent place for international dialogue and exchange.”

The Austrian resolution, one of the most forceful European statements of support for Israel to date, is part of a growing pushback against the BDS movement.

On November 14, 2019, the City Council of Graz, the second-largest city in Austria, adopted a resolution against anti-Semitism and the anti-Israel BDS movement. The council stated that it “resolutely opposes every form of anti-Semitism and condemns the BDS campaign and the call for a boycott of the Jewish state as clearly anti-Semitic.” The council said that “no organizations should be financially supported that question Israel’s right to exist.” It added:

“Projects that call for a boycott or support the BDS movement must not be financially supported. Also, as a result of the decision, the City of Graz will no longer provide urban space for BDS campaigns or events in the future.”

On June 27, 2018, the City Council of Vienna unanimously passed an anti-BDS resolution, which stated:

“The City of Vienna strongly condemns the spread of anti-Semitism worldwide, opposes the anti-Semitic BDS campaign, will not provide urban space for BDS campaigns or events, exhibitions or demonstrations that pursue BDS goals, and will not provide any other support for BDS events.”

On May 17, 2019, the German Parliament passed a resolution condemning the BDS movement as anti-Semitic and pledging to cut off funding to any organizations that actively support BDS. The resolution, passed by a broad cross-party alliance, stated:

“The all-embracing boycott call in its radicalism leads to the branding of Israeli citizens of the Jewish faith. There are statements and actions from the BDS movement that seek to cast doubt on the right of existence of the State of Israel. Calls for boycott are reminiscent of anti-Semitic positions of National Socialism are unacceptable and sharply condemnable.”

The conservative anti-establishment party, Alternative for Germany (AfD), said that the resolution did not go far enough and called for a total ban of BDS activities in Germany. It noted that the BDS movement “has its origins in the anti-Semitic and anti-Zionist initiatives of Arab groups that were already active long before the founding of the State of Israel and that between 1933 and 1945 were in close and friendly contact with the National Socialist government of Germany.”

On October 22, 2019, the Czech Chamber of Deputies passed a non-binding resolution calling for the government “to refuse financial support from such organizations for such movements, organizations and organizations in the European Union, the United Nations and other international institutions and associations calling for a boycott of the State of Israel.”

On July 23, 2019, the U.S. House of Representatives overwhelmingly passed a bi-partisan resolution rejecting the BDS campaign against Israel. The bill — formally known as House Resolution 246 — passed by a vote of 398-17, with five abstentions. The bill was opposed by one Republican and 16 Democrats, including the first two Muslim women elected to Congress: representatives Rashida Tlaib of Michigan and Ilhan Omar of Minnesota.

The measure “opposes the Global Boycott, Divestment, and Sanctions Movement (BDS Movement) targeting Israel, including efforts to target United States companies that are engaged in commercial activities that are legal under United States law, and all efforts to delegitimize the State of Israel.”

It also stated that the BDS campaign “undermines the possibility for a negotiated solution to the Israeli-Palestinian conflict by demanding concessions of one party alone and encouraging the Palestinians to reject negotiations in favor of international pressure.”

Anti-BDS resolutions have been passed in 27 U.S. states: Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Virginia and Wisconsin.

END

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Erdogan continue s to annoy the USA..now Erdogan threatens to recognize the genocide of Native Americans. Trump is very angry and he will no doubt let the Turkish lira sink

(zerohedge)

Erdogan Threatens Recognition Of ‘Genocide’ Of Native Americans In Tit-For-Tat

Is this how Turkish President Recep Tayyip Erdogan plans to “get back” at Washington for the recent US bill that recognizes the 1915 Armenian Genocide? Last month he had warned Trump directly of dire consequences if the term “genocide” is formalized in US law.

And now, according to The Independent, Erdogan says Turkey could in turn give legal recognition to the mass killing of native Americans by European settlers and American colonists in the latest tit-for-tat move against the Congressional resolution.

“Can we speak about America without mentioning [Native Americans]? It is a shameful moment in US history,” Erdogan said in a televised interview this week, raising the threat of a reciprocal measure. Theoretically such Turkish legislation would mean the Turkish government could not associate itself with any event or institution which involved denial of the ‘genocide’ of native Americans.

According to The Independent:

Speaking on the pro-government A Haber news channel, he said: “We should oppose [the US] by reciprocating such decisions in parliament. And that is what we will do.”

“Can we speak about America without mentioning [Native Americans]? It is a shameful moment in US history.”

Thus far Erdogan has remained unwavering in the face of US sanctions threats over Turkey’s procurement of Russian S-400 systems, after after the blockage of F-35 jet transfers.

But the Armenian Genocide issue has long been a sore spot and deeply sensitive issue for the Turkish state. Turkey says many religious minorities died, but disputes that Ottoman troops specifically targeted ethno-religious groups like Armenian, Greek, and Assyrian Christians as a matter of carrying out genocidal polices; instead, it’s claimed that famine, disease, and the harshness of war had just as big a part to play as military deaths.

Meanwhile, early Tuesday the US administration indicated President Trump is yet to recognize the Congressional resolution, which will be received as a major positive sign for Ankara.

*Erdogan file image, via CheckPoint Asia*

“The position of the administration has not changed” after the House and Senate votes, State Department spokeswoman Morgan Ortagus said. “Our views are reflected in the president’s definitive statement on this issue from last April,” she said.

The Congressional resolution would make it US policy “to commemorate the Armenian Genocide through official recognition and remembrance” and “reject efforts to enlist, engage, or otherwise associate the United States government with denial of the Armenian Genocide or any other genocide.”

END

Turkey/Hamas/Israel

The idiot, Erdogan now allows Hamas to plot attacks on Israelis from Istanbul. This will lead to attacks on Turkey from Israel

(Almasdarnews.com)

Turkey Allows Hamas To Plot Attacks From Istanbul: Telegraph

Via AlmasdarNews.com,

Turkey is allegedly allowing Hamas operatives to plan attacks against Israel from the city of Istanbul, a new report from the Telegraph claimed on Wednesday.

Citing transcripts from Israeli police interrogations with suspects, the Telegraph alleged that senior Hamas operatives were using the large city of Istanbul to direct operations in Jerusalem and the occupied West Bank.

The report said that one such case was the assassination attempt against the mayor of Jerusalem.

“Israel has repeatedly told Turkey that Hamas is using its territory to plan attacks, but last weekend Mr Erdogan met Ismail Haniyeh, the head of Hamas, and Turkish intelligence agents maintain close contact with the group’s operatives in Istanbul,” the Telegraph report said.

Hamas has been hosted in mostly Arab countries since its rise to power in the Gaza Strip. Among these Arab nations that hosted Hamas are Syria and Qatar, the latter being the most recent.

Turkey is Qatar’s closest ally in the Middle East and the two countries are often on the same page when it comes to regional politics (e.g. Syrian conflict).

The issue has fueled hostility between the two states, even though they maintain diplomatic relations. “Israel is extremely concerned that Turkey is allowing Hamas terrorists to operate from its territory, in planning and engaging in terrorist attacks against Israeli civilians,” its foreign ministry said.

…Turkey has proved such a welcoming environment for Hamas that the group’s deputy leader, who has a $5 million US government bounty on his head, travels freely to the country without fear of arrest. A dozen Hamas operatives have moved to Istanbul from the Hamas-controlled Gaza Strip in the past year, according to Israeli and Egyptian intelligence records. — The Telegraph

Also taking part in this alliance is Iran, who provides training and weapons to both Hamas and the Palestinian Islamic Jihad (PIJ).

*File image of Hamas supporters at pro-Erdogan rally.*

Other than the Syrian conflict, the three countries have maintained close coordination in other regional conflicts, including the most recent war in Libya.

Israel has attempted to counter this alliance by partnering with countries like the United Arab Emirates and Saudi Arabia.

While their alliance is not official, Israel does reportedly maintain ties with these Arab nations, especially when it comes to Iran.

end

6.Global Issues

(zerohedge)

FedEx CEO: “The Stock Market Is Very Bullish, But The Industrial Economy Doesn’t Reflect Any Growth At All Worldwide”

Yesterday we covered Fedex’s latest disastrous earnings report, in which the company disappointed Wall Street yet again reporting a huge miss to expectations while slashing guidance.

Naturally, analysts – who were once again wrong in expecting a rebound for the logistics bellwether – were quick to slam the results (it’s the company’s fault, not theirs for failing to predict what is going on) with Deutsche Bank analyst Amit Mehrotra writing that FedEx’s earnings report was “breathtakingly bad” with operating profit and important international priority yields down 6% year-over-year in its fiscal second quarter.

“To be fair the market was braced for a weak result…but we’d characterize these numbers as weaker than even the most bearish estimates”, Mehrotra wrote, adding that “earnings appear to be in free-fall, with seemingly little clarity being provided by management as to the duration of the current downturn and drivers of recovery.”

However the real reason why Wall Street is angry, is because FedEx became the latest confirmation that there is something disastrously wrong with the recovery narrative, the same one that has pushed stocks to all time highs even as critical names such as Fedex, which are a leading indicator of global trade and commerce, remain in free fall.

To get some sense of what is really going on, we listened to the company’s earnings call, which did not disappoint, because as CEO Fred Smith explained, Fedex’s results are merely an indication of just how bifurcated everything is in a world that has become the story of two economies – a good one in the US, and an ugly one everywhere else – and while the stock market is “very bullish”, the CEO concluded that the “industrial economy does not reflect any growth at all.”

We’re — as we’ve said several times — pretty optimistic about where we’re headed and going into January, assuming there is no more macroeconomic deterioration. I might also say that I think in this country, there is a little bit of a misunderstanding — estimation of what’s going on in the rest of the world, the e-commerce growth, the technology sector that we had, the tax cut, all of these things have led us to have a high increasing employment. It’s led us to have reasonable GDP growth. That’s virtually not true any place else in the world.

And the industrial economy, particularly in Europe which was hit by the ricochet bullets of the US-China trade war, almost went into recession this time last year and it still hasn’t recovered and Germany in particular is extreme… The US industrial economy, which is much more tied to international trade and, of course, the GM strike and now the MAX shut down, it’s been negative for months now. And so, our B2B Ground volume is growing and our, what is it John, what’s our freight volume, it’s up a little bit or about flat.

Yeah and so that’s a reflection of the industrial economy and a large truckload carrier, they just went bankrupt, Celadon. So, it’s really a tale of two economies and the stock market, of course, is very bullish, but the industrial economy does not reflect any growth at all, worldwide, to speak of.

And here is the disconnected between the market and the economy in all its schizophrenic glory.

7. OIL ISSUES

8 EMERGING MARKET ISSUES

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

Euro/USA 1.1123 DOWN .0028 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 /MOSTLY GREEN EXCEPT GERMAN DAX

USA/JAPAN YEN 109.15 DOWN 0.007 (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 1.3089 DOWN 0.0032 (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3149 DOWN .0012 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS WEDNESDAY morning in Europe, the Euro FELL BY 28 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1123 Last night Shanghai COMPOSITE CLOSED DOWN 5.38 POINTS OR 0.18%

//Hang Sang CLOSED UP 40.50 POINTS OR 0.15%

/AUSTRALIA CLOSED UP 0,09%// EUROPEAN BOURSES MOSTLY GREEN EXCEPT GERMAN DAX

Trading from Europe and Asia

EUROPEAN BOURSES MOSTLY GREEN EXCEPT GERMAN DAX.

2/ CHINESE BOURSES / :Hang Sang CLOSED DOWN 40.50 POINTS OR 0.15%

/SHANGHAI CLOSED DOWN 5.38 POINTS OR 0.18%

Australia BOURSE CLOSED UP. 09%

Nikkei (Japan) CLOSED DOWN 131.69 POINTS OR 0.55%

INDIA’S SENSEX IN THE GREEN

Gold very early morning trading: 1477.20

silver:$17.01-

Early WEDNESDAY morning USA 10 year bond yield: 1.87% !!! DOWN 1 IN POINTS from TUESDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

The 30 yr bond yield 2.30 DOWN 1 IN BASIS POINTS from TUESDAY night.

USA dollar index early MONDAY morning: 97.36 UP 14 CENT(S) from TUESDAY’s close.

This ends early morning numbers WEDNESDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing WEDNESDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.39% UP 3 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.01% DOWN 1 BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/56

SPANISH 10 YR BOND YIELD: 0.43%//UP 4 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,34 UP 4 points in basis points yield from yesterday./

the Italian 10 yr bond yield is trading 91 points higher than Spain.

GERMAN 10 YR BOND YIELD: RISES TO –.25% 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 WEDNESDAY

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

Euro/USA 1.1121 DOWN .0031 or 31 basis points

USA/Japan: 109.59 UP .074 OR YEN DOWN 7 basis points/

Great Britain/USA 1.3067 DOWN .0055 POUND DOWN 55 BASIS POINTS)

Canadian dollar UP 32 basis points to 1.3112

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The USA/Yuan,CNY: AT 7.0031 ON SHORE (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE: 7.0021 (YU01 DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA: 5.9236 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.13%

Your closing 10 yr US bond yield UP 4 IN basis points from TUESDAY at 1.94 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.35 UP 5 in basis points on the day

Your closing USA dollar index, 97.39 UP 17 CENT(S) ON THE DAY/1.00 PM/

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

London: CLOSED UP 15.47 0.21%

German Dax : CLOSED DOWN 65.67 POINTS OR .49%

Paris Cac CLOSED DOWN 8.66 POINTS 0.15%

Spain IBEX CLOSED UP 5.90 POINTS or 0.06%

Italian MIB: CLOSED UP 1.90 POINTS OR 0.01%

WTI Oil price; 60.87 12:00 PM EST

Brent Oil: 66.06 12:00 EST

USA /RUSSIAN / RUBLE FALLS: 62.63 THE CROSS HIGHER BY 0.23 RUBLES/DOLLAR (RUBLE LOWER BY 23 BASIS PTS)

TODAY THE GERMAN YIELD RISES TO –.25 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 : 60.95//

BRENT : 66.18

USA 10 YR BOND YIELD: … 1.92..plus 4 basis pts…usa interest rates creeping up

USA 30 YR BOND YIELD: 2.35..plus 5 basis pts….

EURO/USA 1.1117 ( DOWN 34 BASIS POINTS)

USA/JAPANESE YEN:109.57 UP ..047 (YEN DOWN 5 BASIS POINTS/..

USA DOLLAR INDEX: 97.39 UP 16 cent(s)/

The British pound at 4 pm Britain Pound/USA:1.3085 DOWN 36 POINTS

the Turkish lira close: 5.9264..DANGEROUSLY CLOSE TO 6.00 TO ONE USA DOLLAR.

the Russian rouble 62.86 DOWN 0.46 Roubles against the uSA dollar.( DOWN 46 BASIS POINTS)

Canadian dollar: 1.31121 UP 50 BASIS pts

USA/CHINESE YUAN (CNY) : 7.0031

USA/CHINESE YUAN(CNH): 70015

German 10 yr bond yield at 5 pm: ,-0.25%

The Dow closed DOWN 27.85 POINTS OR 0.10%

NASDAQ closed UP 4.38 POINTS OR 0.05%

VOLATILITY INDEX: 12.56 CLOSED UP .27

LIBOR 3 MONTH DURATION: 1.902%//libor dropping like a stone

USA trading today in Graph Form

FedEx FUBAR, Tesla Tops, Crypto Chaos, & The Steepest Yield Curve In 13 Months

Anyone else feel this way?

China was flat to lower overnight as the post-trade-deal euphoria has well and truly worn off…

Europe was mixed once again with Germany the biggest laggard and Italy leading…

Source: Bloomberg

The Dow and S&P closed red – breaking their win streak but Nasdaq ended higher (6th day in a row – longest Nasdaq streak of gains since July), except for Transports…

Source: Bloomberg

Trannies were crushed by the clubbing of FedEx…

Source: Bloomberg

And Small Caps were lifted by yet another short-squeeze…

Source: Bloomberg

VIX was higher on the day, despite stocks being higher, and saw a second day in a row where vol spiked at the cash open (high gamma ahead of the big op-ex on Friday is causing chaos)…

And VIX closed at the highs of the day, notably decoupling from stocks this week ahead of op-ex…

Source: Bloomberg

The last time VIX closed this near its highs of the day was Nov 27th and VIX was also already rising that time – before spiking higher…

Source: Bloomberg

Defensives continue to lead this week’s gains…

Source: Bloomberg

While FedEx was a bloodbath, Tesla shares hit a new record high above $390 with an incredible performance (short-squeeze) in the last few months. It’s just that bonds have ignored the last push…

Source: Bloomberg

Treasury yields were higher again today, led by the long-end (30Y +4bps) as the short-end outperformed (2Y +1bp)…

Source: Bloomberg

30 Yields tracked up to test Friday’s opening highs, and rolled over. Note the pattern that keeps repeating – Asia buys bonds, Europe sells, US (late session) buys bonds again…

Source: Bloomberg

Bond yields caught up to stocks today post-trade-deal…

Source: Bloomberg

The yield curve has steepened dramatically – with 2s10s closing at its steepest since early November 2018…

Source: Bloomberg

The Dollar Index rallied once again, erasing all the Thursday night plunge…

Source: Bloomberg

Offshore Yuan continues to go nowhere, hovering around 7.00/USD despite stocks surging…

Source: Bloomberg

Cryptos had a crazy volatile day, crashing overnight (again) then panic bid back during the US day session, with Bitcoin almost erasing all the week’s losses…

Source: Bloomberg

With Bitcoin dropping to $6425 before soaring back to almost $7100…

Source: Bloomberg

After an early drop, all commodities rebounded strongly with oil leading the way after a small crude draw…

Source: Bloomberg

WTI topped $61 for the first time since September

Finally, markets are at “extreme greed” levels once again…

Source: CNN

And are extremely overbought on a longer-term basis…

Source: Bloomberg

Does make you wonder…

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

This will hurt first quarter GDP as Boeing 737 Max production is halted

(zerohedge)

Boeing 737 MAX Production Halt Will Slash A Third Off Q1 GDP

Several months ago, when news of the grounding of Boeing’s 737 MAX fleet first hit, we wrote that this would likely lower GDP growth by around 0.3%-0.5% in both Q2 and Q3, as the collapse in shipments was only partially offset by a pickup in the inventory component. Last night’s announcement that production of the plane will also be halted indefinitely, suggests a longer, and more acute hit to US GDP.

First, some history: After the plane was grounded in March, deliveries were halted, producing a roughly 33% decline in nondefense aircraft and parts shipments. However, Boeing continued to produce the plane—albeit in more limited quantities (42/month vs. 52/month)—and placed them in inventory instead of shipping them out while waiting for reauthorization. As a result, industry-wide production of aircraft declined by a much less dramatic ~20%.

All that stopped last night. According to economists from JPMorgan, Goldman and Capital Economics, Boeing’s work stoppage will cut up to 0.5% from first quarter 2020 GDP, with risk to the upside as Boeing’s suppliers are already reeling from the uncertainty around just how long this production halt will last.

While Boeing previously cut production of the 737 Max to 42 a month, down from 52 in March, the move did not have a shocking impact on the economy. However, a full stop in production means the GDP-boosting rise in inventories will end, resulting in a hit to growth.

In the chart below, Goldman used relevant GDP source data to produce a more comprehensive estimate of the GDP contribution from commercial aircraft output. The bank found that the decline in aircraft shipments has indeed only been partially offset by a pickup in measured inventory investment (the former is reflected in the GDP statistics in business investment, the latter in the change in private inventories).

What happens next?

“The expected drag on 1Q GDP growth should be concentrated in reduced inventory accumulation,” said JPMorgan chief economist Michael Feroli, who also expects the monthly factory orders and non-farm payroll reports to be adversely impacted by Boeing’s production halt.

Meanwhile, according to the FT, Michael Pearce at Capital Economics expects a 0.5% hit to GDP growth in the first three months of the year if the shutdown lasts the entire quarter. He said the move will reduce output of commercial aircraft by about $25bn annualized. Pearce expects the decision could deliver a “big hit to the manufacturing sector just as prospects were beginning to brighten” and cautioned that if staff at Boeing’s suppliers are impacted, “there’s a risk the damage could be even worse.”

Goldman also chimed in today, pointing out that “given that 737 MAX production will halt entirely in January, inventory growth is set to fall sharply, which will weigh on Q1 GDP growth.” Source data available for October and November indicate that the elevated pace of inventory accumulation in Q3 has continued into Q4. Because the second derivative of inventories is what matters for GDP growth, Goldman expects the Q1 slowdown in inventory accumulation to lower growth in the quarter by around 0.4%, reflecting an $18bn decline in the pace of real inventory investment, as shown in the next chart.

The good news is that for now, Boeing has avoided any layoffs, but depending on the length of the stoppage that will change; Pearce expects at least some of the workers “at the more than 600 smaller companies in the supply chain will be furloughed or laid off,” and this could halt their investment plans and could crop up in jobless claims and consumer confidence data.

The bigger issue is that with Q1 GDP already set to print at just 1.5%, another 0.5% in growth being removed will result in the worst quarter for US GDP in years, and would leave the US economy precariously close to a recession.

The silver lining in this situation is that once the 737 Max gets the green light to get off the ground again, the US economy stands to get a big boost as there will be a surge in exports and investment, though this could be delayed until the second half of 2020 . Indeed, as Goldman puts it, “a potential recertification of the plane suggests scope for the level of GDP to rebound by around 0.3% (or 1.2pp annualized) at some point in the future, but we will wait for clarity on the timing before incorporating this into our baseline forecasts.”

Of course, the upside scenario is based on the assumption that the 737 Max grounding will end… eventually. The problem is that the longer this plane remains grounded, the lower its odds of ever flying again. Meanwhile, every quarter 737 Max production is mothballed, US GDP will continue to be hit by about 0.5% relative to some optimistic ~2% or so baseline which assumed airplane production in perpetuity. As such, just a fairly modest hit to the US economy will be sufficient to finally send the economy into a recession.

END

A good one… Fed President of Boston Rosengren, issues a shocking admission: we need to be pretty focused on asset prices and not just inflation..

Bubbles galore..

(ZEROHEDGE)

Fed President’s Shocking Admission: “We Need To Be Pretty Focused On Asset Prices, Not Just Inflation”

There was an stunning admission by Boston Fed head Eric Rosengren on Tuesday, when during an audience Q&A after a speech to The Forecasters Club of New York, the voting FOMC member (and chronic dissenter – Rosengren has voted against all three rate cuts made by the Fed this year) the former dove warned that lower rates could encourage excessive risk taking and over-leveraging, which would create great risks during a downturn. More importantly, he confirmed that high asset prices are a direct function of low rates, and thus Fed policy, and it is the Fed that is responsible for not only all prior bubbles, but the biggest one them all: the one right now.

“I do have concerns about that financial stability. I would prefer probably a different level of rates,” the Boston Fed President said, confirming that low rates will eventually result in a financial crisis, and that only higher rates can lead to a final outcome that is not apocalyptic.

Rosengren said that following three rate cuts this year and the launch of QE4, he remains worried that lower rates could encourage corporations to take on excessive risk and borrow too much. The policymaker said companies that are over-leveraged may have to lay off more workers in a downturn, which could amplify losses and cause more damage to the economy.

Most importantly, the Boston Fed confirmed what we have been saying all along: the Fed should be worried not just about economic inflation – which remains muted – but also asset prices, which have been gripped by runaway inflation over the past decade.

“If you look at the last two recessions, they were not situations where inflation got out of control. They were situations where asset prices went way up and then came way down. So if your goal is to avoid recessions, I think we need to be pretty focused on asset prices not just inflation“, Rosengren said in a moment of shocking candor and transparency.

He was referring, of course, to the chart below which we have shown on many prior occasions, yet which most of Rosengren’s peers refuse to admit even exists.

Rosengren’s conclusion, while spot on, to wit “If what you want to do is avoid recessions in the future, you have to be thinking about what is happening to asset prices as well”, will be ignored by everyone, from investors to policy makers, because if the Fed admits that Rosengren is right and the Fed has to start “paying attention” to the hyperinflation it has created across asset prices, then the party is over. It’s even worse when considering that the Fed has blown such an asset price bubble in equities and other assets, that the only possible outcome is either for the bubble to burst, or to keep growing exponentially, making the resulting crisis far worse.

Of course, while the Fed may still be ignoring what is so blatantly obvious to everyone else, the problem is that increasingly more ordinary people are realizing that in a time when the S&P is up 27% and wages are barely higher for the 10th consecutive year, there is something catastrophically wrong… and that thing is called monetary policy. And once the tipping point of populist anger finally arrives and an angry platoon of pitchfork-dragging discontents arrives at the Fed building in D.C., that’s the moment when the insanity of the past decade will finally be over. Insanity, which incidentally started with Ben Bernanke’s explanation in a WaPo op-ed just why the Fed’s true mandate is to push stock prices higher, because – somehow – it would stimulate the economy (recall: “higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending”). Instead, all the Fed’s mandate of levitating asset achieved was to make the top 0.01% richer than ever, crush the middle class, and unleashed a tidal wave of populist anger that will eventually culminate with an angry mob burning down the Marriner Eccles building. For the sake of everyone, we can only hope that said mob does not wait too long.

iv) Swamp commentaries)

Wall Street Journal Editorial Board slams the FISA circus as to why no individuals have been held accountable

(zerohedge)

“No Individuals Have Been Held Accountable”: WSJ Editorial Board Slams FISA Circus

Following the release of the DOJ Inspector General’s report revealing that the FBI deceived the Foreign Intelligence Surveillance Act (FISA) court in order to spy on former Trump campaign aide Carter Page, presiding FISC Judge Rosemary Collyer issued a rare public rebuke – while ordering the agency to clean up its act, and fast.

Collyer noted despite the FBI’s “heightened duty of candor,” officials fabricated evidence and concealed information from the court which harmed their argument that Page was an “agent of a foreign power,” fabricated evidence.

Because of this, the court is now concerned about “whether information contained in other FBI applications is reliable.”

Those involved in the operation to take Trump down, meanwhile, are scrambling to downplay the IG report while taking as little responsibility as possible. After the FBI first tried to pass the buck – insisting that the Page applications were legit since the FISA court approved them, former FBI Director James Comey’s feet were finally held to the fire by Fox News host Chris Wallace last weekend:

The former FBI Director went into full boyscout mode when he chalked up the 17 ‘serious errors’ found by the IG to “real sloppy” work, adding “..I was overconfident in the procedures that the FBI and Justice had built over 20 years. I thought they were robust enough.”

Meanwhile, former CIA Director John Brennan acknowledged on Tuesday that “there were mistakes made” during the application process.

And former Director of National Intelligence, James Clapper, has been using the old ‘we were just following orders’ line after it was revealed he and the other Obama-era IC heads were under investigation by US Attorney John Durham, telling CNN in October that he was just investigating what “the then commander-in-chief, President Obama, told us to do.”

And despite all that we now know, the Wall Street Journal editorial board asks; why hasn’t anyone been held accountable?

Judge Collyer’s order demands that the government, no later than Jan. 10, inform the court “in a sworn written submission” what it has done and plans to do to make sure future FISA warrant applications aren’t tainted. This is useful and is the first public evidence we’ve had that the FISA judges believe they were deceived.

Yet it also underscores how the FISA process dilutes political accountability. The FBI has tried to say its applications were kosher because a court approved them, while the court now fingers the FBI for deception. But so far no individuals have been held accountable, and the abuses would never have been discovered without the digging of former House Intelligence Chairman Devin Nunes. -WSJ

Indeed, the only person that might be held accountable was an FBI attorney – Kevin Clinesmith, who fabricated evidence in the Carter Page FISA app to say he wasn’t a CIA source, when in fact he was – with “positive assessment.”

And while Clinesmith was slapped with a criminal referral by the IG, he is far from the only person within the agency whose hands are dirty. Yet – as the Journal notes, nobody else has been held to account.

In closing, they write “Congress created FISA in the late 1970s to protect against previous FBI wiretap abuses. Clearly it hasn’t worked, and more bureaucratic hurdles won’t stop FBI officials who lie or alter email evidence. Injecting judges into secret executive-branch national security decisions was always a mistake, and now we know it abets abuse more than prevents it.”

Snyder: By Impeaching Trump, Dems Are Destroying Our Political System And Their Chances In 2020

Authored by Michael Snyder via TheMostImportantNews.com,

The Democrats probably never imagined that this effort to remove Donald Trump from office would backfire so spectacularly. Yes, it was always a foregone conclusion that they would be able to impeach Trump in the House, but they were expecting that a majority of the American people would rally around them and that simply has not happened. In fact, we just got some brand new numbers that are incredibly good news for President Trump. As you will see below, public support for impeachment continues to fade, and a brand new survey just found that President Trump would beat all of the major contenders for the Democratic nomination if the 2020 election was held today.

At one time, it appeared that the Democrats were likely to win the 2020 presidential election in a historic landslide, but now thanks to this impeachment debacle the numbers have shifted dramatically in Trump’s favor. And if Trump does ultimately end up winning, the Democrats are going to be kicking themselves for ever going down this road in the first place.

Meanwhile, the heavily slanted and exceedingly bitter coverage of this impeachment process by the mainstream media is deepening the very painful political divisions that have been tearing America apart. This week, there will literally be hundreds of pro-impeachment protests in cities all across the nation, and the anger that we see on the left is rising to a level that is absolutely frightening.

If President Trump does win again in 2020, everyone already knows what is going to happen. Key Democratic leaders and the mainstream media have been stirring the pot day after day, and all of the frustration that they have been fueling will reach a crescendo if Trump is not defeated next November.

In order for any political system to operate successfully, most of the population must be willing to accept the outcomes that system produces. But now we have gotten to the point where a large portion of the population is ready to start burning things down if election results don’t go their way.

If the Democrats truly believed that President Trump did something that warranted impeachment, they should have gone out of their way to make the impeachment process in the House a fair, bipartisan effort. But instead, they alienated their Republican colleagues at every turn, and that was a tragic mistake. After the sham that we just witnessed in the House, Senate Majority Leader Mitch McConnell sees no reason to take an impartial stance in the Senate…

McConnell on Tuesday made clear he’s not interested in giving in to any demands from Democrats. He said that the partisan House impeachment would result in “an almost entirely partisan outcome in the Senate as well.”

“I’m not an impartial juror,” McConnell said. “This is a political process.”

McConnell’s strategy relies on keeping Democratic requests on procedures, documents and witnesses bottled up and maintaining pressure on any wavering Republicans who might agree with Minority Leader Chuck Schumer’s push for more evidence.

Can anyone blame McConnell? If the Democrats had tried very hard to conduct things fairly in the Senate, McConnell would have been forced to at least maintain a pretense of objectivity.

But now all of that is out the window, and the stage has been set for President Trump to potentially turn the Senate trial into his own version of “show and tell”, and many on the left are fearing the worst.

For example, the following is what one USA Today reader is anticipating from the upcoming trial…

President Donald Trump is not satisfied with avoiding conviction in a Senate trial. He wants a spectacle and platform to humiliate the Democrats, former Vice President Joe Biden and Biden’s son, Hunter. If Trump gets his way with Senate Majority Leader Mitch McConnell, a World Wrestling Entertainment event will replace a serious impeachment trial.

After all that Trump has been through in recent months, it is quite understandable that he would be eager to “humiliate the Democrats”.

In particular, I think that Trump is quite keen on telling the whole world about what Joe and Hunter Biden were really up to in Ukraine.

According to a new survey, 62 percent of Americans believe that Trump will be treated fairly in the Senate. And since Republicans control the Senate, things are likely to proceed a whole lot differently than they did in the House.

Once the Senate trial begins in January, you might want to grab some popcorn, because it promises to be quite entertaining.

The Democrats were apparently hoping that by tightly controlling the process in the House that they would be able to get the American people on their side. But instead, a CNN poll that was just released found that public support for impeachment has fallen substantially…

A CNN poll released this week, conducted by SSRS December 12-15, among 1,005 adults, found that 45 percent support impeaching the president. That reflects a 5-point drop from November’s results, which showed support for impeachment at 50 percent.

Support for impeaching the president, even among Democrats alone, is dropping. In November, 90 percent of Democrats supported impeaching the president. The most recent results show the number falling to 77 percent — a 13-point drop in one month.

A 13 percent shift in one month among Democrats is absolutely catastrophic for Nancy Pelosi and her minions.

This is a failure of epic proportions, and Pelosi’s political future is looking exceedingly grim at this point.

Meanwhile, things have never looked better for President Trump’s political future. According to another new poll that was just released, Trump would beat every single one of the top contenders for the Democratic nomination if the election was held today…

The national survey, taken as the House of Representatives planned an impeachment vote and the Senate a trial, showed Trump defeating former Vice President Joe Biden by 3 percentage points, Vermont Sen. Bernie Sanders by 5 points, and Massachusetts Sen. Elizabeth Warren by 8 points.

In hypothetical head-to-head contests, Trump also led South Bend, Indiana, Mayor Pete Buttigieg by 10 points and former New York City Mayor Michael Bloomberg by 9.

But before this impeachment saga ever began, all of the polls showed all of the Democratic contenders defeating Trump quite soundly.

Since it was never likely that Trump would be removed from office by the Republican-controlled Senate, many believed that Pelosi launched this impeachment process as a way to damage Trump and the Republicans for the 2020 election, but if that was her goal she is failing spectacularly.

At one time, it appeared that the 2020 election was potentially going to be a landslide for the Democrats.

You can forget all about that now. By impeaching Trump, the Democrats may have just given him the edge that he needs to win in 2020, and for many on the left that is the worst possible outcome imaginable.

END

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

McConnell rips Schumer impeachment demands, vows not to pursue ‘fishing expedition’

“The Senate is meant to act as judge and jury, to hear a trial, not to re-run the entire fact-finding investigation because angry partisans rushed sloppily through it,”he said on the Senate floor…

https://www.foxnews.com/politics/mcconnell-schumer-impeachment-demands-vows-not-to-pursue-fishing-expedition

@jennfranconews: Majority Leader McConnell rejects Sen. Schumer’s call for new witnesses to testify in an impeachment trial: “Senate Democratic leader would apparently like our chamber to do House Dems’ homework for them. He wants to volunteer the Senate’s time & energy on a fishing expedition.”

McConnell Suggests Senate Will Move to Dismiss Impeachment after Opening Arguments

McConnell accused Schumer of going straight to the news media with his proposals rather than speaking to him in person, as Senate leaders had done in the past. He also noted that Schumer had misquoted the Constitution. The Democrat leader had claimed the Constitution gave the Senate “sole Power of Impeachment,” whereas Article I, Section 3 actually states, “The Senate shall have the sole Power to try all Impeachments.”…

The Republican leader said he agreed with Schumer’s suggestion that the Senate follow the model used in President Bill Clinton’s impeachment trial in 1999, but accused Schumer of departing from that precedent. In the 1999 trial, McConnell noted, here there were two procedural motions — one at the start of the trial, which allowed for a motion to dismiss; and a later one guiding the trial’s procedures and conclusion. McConnell noted that Schumer had supported a motion to dismiss in the Clinton case. He added that Schumer had opposed the calling of live witnesses in that case…

https://www.breitbart.com/politics/2019/12/17/mcconnell-suggests-senate-will-move-to-dismiss-impeachment-after-opening-arguments/

@ChadPergram: McConnell on if he can be an impartial juror: “I’m not an impartial juror. This is a political process…”

Schumer’s plea for more evidence and witnesses implies that he knows the House case is weak, if not risible – and a national display of the House’s evidence will be very negative politically for Dems.

The really big, compelling question is WHY did House Dems rush the investigation? The haste was probably to get a jump on Horowitz’s report, Durham indictments and the investigation into purportedly wide-spread Ukrainian corruption and interference in the 2016 election.

@RudyGiuliani: Dem’s impeachment for innocent conduct is intended to obstruct the below investigations of Obama-era corruption: Billions of laundered $; Billions, mostly US $, widely misused; Extortion; Bribery; DNC collusion w/ Ukraine to destroy candidate Trump; Much more to come.

[Ex-Ukraine Amb. dismissed by DJT] Yovanovitch needed to be removed for many reasons most critical she was denying visas to Ukrainians who wanted to come to US and explain Dem corruption in Ukraine. She was OBSTRUCTING JUSTICE and that’s not the only thing she was doing. She at minimum enabled Ukrainian collusion. Recently acquired documentary evidence shows she perjured herself before Schiffless Committee. Also her embassy stopped a Ukrainian audit of over $5 billion in aid funding put in question in 2017 by Ukrainian auditors. Enough for now more to come, plenty more.

OAN’s @ChanelRion: Artem Sytnyk, head of Ukraine’s NABU, (central figure in Biden coverup) charged with corruption in Kyiv. Sources report he refuses to step down but is expected to be fired.

President Zelensky of Ukraine about to give George Kent’s NABU a long awaited deep cleaning. Zelensky reportedly awaiting procedures to sign off and dismiss NABU head Artem Sytnyk over corruption charges and deep roots in US Embassy — AKA “Hillary HQ.”

Former Ukr. Prosecutor Exposes Yovanovich Perjury, George Kent’s Motive to Impeach Trump

The U.S. State Dept. serves as a distribution network for the authorization of the money laundering by granting conflict waivers, approvals for financing (think Clinton Global Initiative), and permission slips for the payment of foreign money. The officials within the State Dept. take a cut of the overall payments through a system of “indulgence fees”, junkets, gifts and expense payments to those with political oversight… President Trump was considered an existential threat to this entire process. Hence our current political status with the ongoing coup…

The McCain Institute is one of the obvious examples of the financing network. And that is the primary reason why Cindy McCain is such an outspoken critic of President Trump…

There’s a ton of exposure here (blackmail/leverage) which allows the unelected officials within the CIA, FBI and DOJ to hold power over the DC politicians… Perhaps this corrupt sense of grandiosity is what we are seeing play out in how the intelligence apparatus views President Donald J Trump as a risk to their importance.

https://www.zerohedge.com/geopolitical/former-ukrainian-prosecutor-exposes-yovanovich-perjury-george-kents-motive-impeach

CBS: Did Ukraine try to interfere in the 2016 election on Clinton’s behalf? July 13, 2017

A Democratic operative[Alexandra Chalupa]working with the Democratic National Committee did reach out to the Ukrainian government in an attempt to get damaging information about the Trump campaign… she knew about Paul Manafort’s extensive connections to the pro-Russian regime of Ukrainian President Viktor Yanukovych, and decided to dig deeper into possible connections between Moscow and the Trump campaign. As part of that effort, she discussed Manafort with the high-ranking officials at the Ukrainian embassy in Washington, D.C…

https://www.cbsnews.com/news/did-ukraine-try-to-interfere-in-the-2016-election/

John Solomon: Latvian government says it flagged ‘suspicious’ Hunter Biden payments in 2016

The Feb. 18, 2016 alert to Ukraine came from the Latvian prosecutorial agency responsible for investigating money laundering, and it specifically questioned whether Vice President Joe Biden’s younger son and three other officials at Burisma Holdings were the potential beneficiaries of suspect funds…The memo was released to me by the Ukrainian General Prosecutor’s Office and confirmed by the Latvian embassy to the United States…

https://johnsolomonreports.com/latvian-government-says-it-flagged-suspicious-hunter-biden-payments-in-2016/

WaPo: Trump excoriates Pelosi and Democrats in letter to House speaker, says impeachment is ‘declaring open war on American Democracy’

https://www.washingtonpost.com/politics/trump-impeachment-live-updates/2019/12/17/f3aa9e20-20b9-11ea-86f3-3b5019d451db_story.html

DJT’s letter to Pelosi: “You are the ones interfering in America’s elections. You are the ones subverting America’s democracy. You are the ones Obstructing Justice. You are the ones bringing pain and suffering to our Republic for your own selfish personal, political and partisan gain… No intelligence person believes what you are saying..you are making a mockery of impeachment and you are scarcely concealing your hatred of me..” https://www.whitehouse.gov/wp-content/uploads/2019/12/Letter-from-President-Trump-final.pdf

@paulsperry_: On 1/24/18, then-Deputy AG Rod Rosenstein wrote Rep. Nunes a letter warning him that releasing his FISA abuse memo would be “extraordinarily reckless” & “harm national security.” Now we know Rosenstein (who signed FISA) was doing damage control

CBS: In letter, DOJ tells Devin Nunes releasing memo would be “extraordinarily reckless”

https://www.cbsnews.com/news/doj-tells-devin-nunes-releasing-memo-would-be-extraordinarily-reckless/

@paulsperry_: On Jan. 29, 2018, FBI Dir Robert Wray issued a statement rebutting the Nunes Memo on FISA abuses & warning Trump not to declassify or release it, citing “grave concerns” with inaccuracies & omissions in the memo. Now we know Wray, too, was lying

ABC: FBI expresses ‘grave concerns’ over accuracy of Republican surveillance memo

The FBI says it has “grave concerns” about the Republican memo’s accuracy

https://abcnews.go.com/Politics/fbi-expresses-grave-concerns-accuracy-republican-surveillance-memo/story?id=52751729

FISA court slams FBI over surveillance applications, in rare public order

“The frequency with which representations made by FBI personnel turned out to be unsupported or contradicted by information in their possession, and with which they withheld information detrimental to their case, calls into question whether information contained in other FBI applications is reliable.”…

https://www.foxnews.com/politics/fisa-court-slams-fbi-over-surveillance-applications-in-rare-public-order

Presiding FISA Court Judge Rosemary Collyer, who signed the first FISA for Page, ordered the “government to inform the court in a sworn written submission what it has done, and how it plans, to do to ensure that the statement of facts in each FBI application accurately and completely reflects information possessed by the FBI that is material to any issue presented by the application.”

https://www.fisc.uscourts.gov/sites/default/files/MIsc%2019%2002%20191217.pdf

@lawyer4laws: The same Judge offered multiple extensions and the ability to amend multiple times.

Rep. Devin Nunes: “The FISC Court is also culpable”. We sent them two letters about abuse in 2018; they did nothing about it. https://twitter.com/BOOMER4K/status/1207114588719865858

The FISA Court is looking to escape culpability. Let’s see how this plays out. Judge Contreras withdrew from the Gen. Flynn trial after FBI Agent Strzok bragged about his friendship with the judge in an email.

WSJ’s @KimStrassel: It’s great that the FISA court slammed the FBI and acknowledged the obvious–that deceiving a surveillance court is a grave thing. But the follow on order is pathetic, as it is essentially: Please tell us how you intend to do better. Really? Courts have the ability to discipline those who undermine the integrity of a court’s functions. They can even appoint special investigators. Is the court not curious if this behavior happened in other warrants? And if court-imposed sanction isn’t relevant here, when is it?

end

Let us close out tonight with this terrific interview of author Mark Taylor. He discusses the fact that Obama knew everything and eventually they will get him..and he can still be impeached long after he left office

a must view,,,

Obama Knew Everything – Mark Taylor

By Greg Hunter On December 18, 2019

Mark Taylor, author of the popular book called “The Trump Prophecies,” predicted Donald Trump would become the 45^th President of the United States long before anyone else. Taylor has also predicted that Barack Obama would be “ripped and stripped” of the Presidency. Yes, that can still happen even though he is no longer in office. How could that happen? Look no further than the Trump/Russia collusion hoax and orders to spy on everything Trump coming from President Obama in his last year in office. Taylor reads President Trump’s December 15^th tweet and says, “As bad as the IG Report is for the FBI and others, and it is really bad, remember that I.G. Horowitz was appointed by Obama. There was tremendous bias and guilt exposed, so obvious, but Horowitz couldn’t get himself to say it. Big credibility loss. Obama knew everything!”

Then, Taylor points out, “Do you understand how powerful that is coming from the President of the United States? The language is starting to progress, and they are exposing now that all roads lead to Obama when it comes to this. Responding to President Trump’s tweet is Tom Fitton of Judicial Watch saying, ‘Obama can still be impeached.’ So, is this how he gets ‘ripped and stripped’ of the Presidency? Could be. I am still a firm believer in what God is showing me, and that is Obama will be charged with treason and he will go to prison. . . . If he is ‘ripped and stripped’ of the Presidency, does this null and void everything he has done? That means all his executive orders and including two Supreme Court Justices. Is this going to null and void all of this?”

What is Taylor’s assement of the crazy and dishonest impeachment of President Trump and revelations of law breaking at the FBI and DOJ with the release of the IG Report on FISA abuse? Taylor says, “Right now, on the spiritual plain, you are dealing with a wounded cornered animal. I like to use the gator analogy where you catch a gator and he does a death roll. That’s where the cabal is right now. They have been caught, and they are in a death roll. The death roll can be the most dangerous part of the entire operation right now. We are coming to the crescendo of this whole thing. . . . They know they are in trouble. What you are seeing on a spiritual level is you are dealing with demonic entities that are in control of these people. They control the system, but they also control these people, and they can’t control themselves. That’s what you are dealing with: powers, principalities and demons. . . . These demons are not hiding it right now. This is why you are seeing these people going crazy. . . .People are not used to seeing this, but this is the war we are engaged with . . . .You are seeing this ‘Walk Away’ movement from the Democrat Party right now. You will not see another Democrat in the White House for many, many years, if ever again. They are being allowed to go through this impeachment process because they are actually voting for the death of their own party.”

Taylor says, “Don’t fall into the frequency of Satan’s doom and gloom. Tune into heaven’s frequency. You have to look at faith. God is saying things are going to be straightened out, and people are going to go to prison. Is it going to take time? Yes. It’s going to take faith, and you really need to turn to Heaven’s frequency, and get rid of Satan’s frequency and turn the channel.”

Taylor also makes some 2020 predictions, but you will have to listen to the interview to hear them.

Join Greg Hunter as he goes One-on-One with the author of the popular book “The Trump Prophecies.”

end

Well that is all for today

I will see you Thursday night.

NUMBER OF NOTICES FILED TODAY FOR DEC CONTRACT: 365 NOTICE(S) FOR 36,500 OZ (1.1353 tonnes)

56 NOTICE(S) FILED TODAY FOR 280,000 OZ/

Bitcoin: OPENING MORNING TRADE : $ 6583 DOWN 42

Bitcoin: FINAL EVENING TRADE: $ 7165 UP 509

Let us have a look at the data for today

3. ASIAN AFFAIRS

3A//NORTH KOREA/ SOUTH KOREA

3b) REPORT ON JAPAN

3C CHINA

4/EUROPEAN AFFAIRS

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

6.Global Issues

7. OIL ISSUES

8 EMERGING MARKET ISSUES

9. PHYSICAL MARKETS

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

Let us head over to the comex:

Trading Volumes on the COMEX TODAY: 195,593 CONTRACTS

CONFIRMED COMEX VOL. FOR YESTERDAY: 190,336 contracts

INITIAL standings for DEC/GOLD

And now for silver

AND NOW THE DELIVERY MONTH OF DEC.

INITIAL standings/SILVER

ii) Important gold commentaries courtesy of GATA/Chris Powell

Jan Nieuwenhuijs: Gold auditor lied to Congress — Fort Knox vault seals were broken, metal was moved

Robert Lambourne: BIS gold swaps and derivatives at highest point since February

U.S. government seeks complete delay of civil action against precious metals traders

Craig Hemke at Sprott Money: Gold price manipulation in 2019

iii) Other physical stories:

US Official Gold Reserves Auditor Caught Lying

Cryptos Continue Collapse Overnight After Chinese Scammer Allegedly Liquidates

The Cascading Effect

The New York Fed Is Keeping JPMorgan’s Secrets Close to Its Chest

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

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

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

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

Stocks Set For New All Time High On Trump Impeachment Day

3A/ASIAN AFFAIRS

3 a./NORTH KOREA/ SOUTH KOREA

b) REPORT ON JAPAN

3 C CHINA

The Big Hole In The China Trade Agreement

China EV Sales Plunge In November Amid Turmoil In Global Auto Market

Are Eurozone Manufacturers The Big Losers In The US-China Trade Deal?

China Won’t Rush Into Buying US Farm Products Under Phase One Deal, Warns US Trade Advisor

4/EUROPEAN AFFAIRS

Austrian Parliament To Declare BDS Movement As Anti-Semitic

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

Erdogan Threatens Recognition Of ‘Genocide’ Of Native Americans In Tit-For-Tat

Turkey Allows Hamas To Plot Attacks From Istanbul: Telegraph

6.Global Issues

FedEx CEO: “The Stock Market Is Very Bullish, But The Industrial Economy Doesn’t Reflect Any Growth At All Worldwide”

7. OIL ISSUES

8 EMERGING MARKET ISSUES

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

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

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

USA trading today in Graph Form

FedEx FUBAR, Tesla Tops, Crypto Chaos, & The Steepest Yield Curve In 13 Months

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

Boeing 737 MAX Production Halt Will Slash A Third Off Q1 GDP

Fed President’s Shocking Admission: “We Need To Be Pretty Focused On Asset Prices, Not Just Inflation”

“No Individuals Have Been Held Accountable”: WSJ Editorial Board Slams FISA Circus

Snyder: By Impeaching Trump, Dems Are Destroying Our Political System And Their Chances In 2020

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