DEC 27//GOLD HAS A STELLAR DAY UP $4.10 TO $1513.70//SILVER DOWN 3 CENTS TO $17.88//GOLD LEASE RATES CONTINUE IN NEGATIVITY INDICATING SCARCITY//YOUR ESSENTIAL READING THIS WEEKEND: ALASDAIR MACLEOD//MORE SWAMP STORIES FOR YOU TONIGHT//

GOLD:1513.70 UP $4.10    (COMEX TO COMEX CLOSING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silver:$17.88 DOWN 3 CENTS  (COMEX TO COMEX CLOSING) :

Closing access prices:

 

6 MONTH GOLD LEASING RATE ALWAYS AGAIN TO -.20%..INDICATES HUGE SCARCITY

OPTIONS EXPIRY AT THE COMEX FINISHED ON THURSDAY

OTC OPTIONS EXPIRY/LBMA ON TUESDAY/DEC 31 AT AROUND 11 AM.

SURPRISINGLY GOLD HELD UP PRETTY GOOD TODAY DESPITE OTC OPTIONS EXPIRY FINISHING ON TUESDAY. THE BANKERS ARE NOW LOATHE TO SUPPLY PAPER SHORTS, AFRAID THAT THE BUYERS WILL TURN THEIR PAPER INTO REAL METAL.

 

 

 

 

Gold :  $1511.15

 

silver:  $17.76

 

 

COMEX DATA

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

today RECEIVING:  0/21

EXCHANGE: COMEX
CONTRACT: DECEMBER 2019 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,509.300000000 USD
INTENT DATE: 12/26/2019 DELIVERY DATE: 12/30/2019
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
657 C MORGAN STANLEY 4
690 C ABN AMRO 11
737 C ADVANTAGE 2
905 C ADM 17
991 H CME 8
____________________________________________________________________________________________

TOTAL: 21 21
MONTH TO DATE: 14,702

we are coming very close to a commercial failure!!

 

 

NUMBER OF NOTICES FILED TODAY FOR  DEC CONTRACT: 21 NOTICE(S) FOR 2100 OZ (0.0653 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  14,702 NOTICES FOR 1,470,200 OZ  (45.729 TONNES)

 

 

 

 

SILVER

 

FOR DEC

 

 

58 NOTICE(S) FILED TODAY FOR 290,000  OZ/

total number of notices filed so far this month: 4183 for 20,915,000 oz

 

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Bitcoin: OPENING MORNING TRADE :  $ 7129 DOWN 32 

 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 7219 UP 17

 

Let us have a look at the data for today

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IN SILVER THE COMEX OI ROSE BY A VERY STRONG SIZED 2620 CONTRACTS FROM 223,046 UP TO 225,666 WITH THE 16 CENT GAIN IN SILVER PRICING AT THE COMEX.

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

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

; FEB 0; MARCH:  1982 AND ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  1982 CONTRACTS. WITH THE TRANSFER OF 1982 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 1982 EFP CONTRACTS TRANSLATES INTO 9.91 MILLION OZ  ACCOMPANYING:

1.THE 16 CENT GAIN IN SILVER PRICE AT THE COMEX AND

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

JUNE/2018. (5.420 MILLION OZ);

FOR JULY: 30.370 MILLION OZ

FOR AUG., 6.065 MILLION OZ

FOR SEPT. 39.505 MILLION  OZ S

FOR OCT.2.525 MILLION OZ.

FOR NOV:  A HUGE 7.440 MILLION OZ STANDING  AND

21.925 MILLION OZ FINALLY STAND FOR DECEMBER.

5.845 MILLION OZ STAND IN JANUARY.

2.955 MILLION OZ STANDING FOR FEBRUARY.:

27.120 MILLION OZ STANDING IN MARCH.

3.875 MILLION OZ STANDING FOR SILVER IN APRIL.

18.845 MILLION OZ STANDING FOR SILVER IN MAY.

2.660 MILLION OZ STANDING FOR SILVER IN JUNE//

22.605 MILLION OZ  STANDING FOR JULY

10.025   MILLION OZ INITIAL STANDING IN AUGUST.

43.030   MILLION OZ INITIALLY STANDING IN SEPT. (HUGE)

7.32     MILLION OZ INITIALLY STANDING IN OCT

2.630     MILLION OZ STANDING FOR NOV.

20.930   MILLION OZ  INITIALLY STANDING IN DEC

YESTERDAY, AGAIN OUR CROOKS USED COPIOUS PAPER IN ORDER TO CONTAIN SILVER’S PRICE…AND THEY WERE  UNSUCCESSFUL IN KNOCKING THE PRICE OF SILVER DOWN (IT ROSE 16 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  4602 CONTRACTS. OR 23.01 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.WE SHOULD SEE THE SPREADING LIQUIDATION PHASE BEGIN DURING THIS COMING WEEK.

 

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

34,462 CONTRACTS (FOR 21 TRADING DAYS TOTAL 34,462 CONTRACTS) OR 172.310 MILLION OZ: (AVERAGE PER DAY: 1641 CONTRACTS OR 8.120 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF DEC:  172.310 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 23.14% 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:          2,267.59   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. THE CONTRACTION PHASE WILL BEGIN THIS WEEK.

 

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 VERY STRONG SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 2620, WITH THE 16 CENT GAIN IN SILVER PRICING AT THE COMEX /THURSDAY… THE CME NOTIFIED US THAT WE HAD A  STRONG SIZED EFP ISSUANCE OF 1982 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA)

TODAY WE GAINED AN ATMOSPHERIC AND CRIMINALLY SIZED: 4766 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 1982 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 2620 OI COMEX CONTRACTS. AND ALL OF THIS STRONG DEMAND HAPPENED WITH A 16 CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $17.91 WITH RESPECT TO THURSDAY’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. 1.055 BILLION OZ TO BE EXACT or 150% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT DEC MONTH/ THEY FILED AT THE COMEX: 58 NOTICE(S) FOR 290,000 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:

  1. HUGE AMOUNTS OF SILVER STANDING FOR DELIVERY  (MARCH/2018: 27 MILLION OZ , APRIL/2018 : 2.485 MILLION OZ  MAY: 36.285 MILLION OZ ; JUNE/2018  (5.420 MILLION OZ) , JULY 2018 FINAL AMOUNT STANDING: 30.370 MILLION OZ   )  FOR AUGUST 6.065 MILLION OZ. , SEPT:  A HUGE 39.505 MILLION OZ./ OCTOBER: 2,520,000 oz  NOV AT 7.440 MILLION OZ./ DEC. AT 21.925 MILLION OZ   JANUARY AT  5.825 MILLION OZ.AND FEB 2019:  2.955 MILLION OZ/ MARCH: 27.120 MILLION OZ/  APRIL AT 3.875 MILLION OZ/ A MAY:  18.845 MILLION OZ ..JUNE 2.660 MILLION OZ//JULY 22.605 MILLION OZ; AUGUST 10.025 MILLION OZ/ SEPT 43.030 MILLION OZ//OCT: 7.665 MILLION OZ//   NOV: 2.630 MILLION OZ//DEC:  20.930 MILLION OZ 
  2.  THE  RECORD WAS SET IN AUGUST 22/2018:  244,196 CONTRACTS,  WITH A SILVER PRICE OF $14.78//.
  3. HUGE ANNUAL EFP’S ISSUANCE EQUAL TO 2.9 BILLION OZ OR 400% OF SILVER ANNUAL PRODUCTION/2017 RECORD SETTING EFP ISSUANCE FOR ANY MONTH IN SILVER; APRIL/2018/ 385.75 MILLION OZ/  AND THE SECOND HIGHEST RECORDED EFP ISSUANCE JUNE 2018 345.43 MILLION OZ

 

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

 

GOLD

 

IN GOLD, THE COMEX OPEN INTEREST ROSE BY A STRONG SIZED 6834 CONTRACTS TO 755,571 SETTING AN ALL TIME RECORD (SET DEC 27/2019)  AND THUS  ECLIPSING  OUR PREVIOUS ALL TIME RECORD OF 748,737 (SET DEC 26/2019).

THE RISE IN COMEX OI OCCURRED WITH A  $9.85 PRICING GAIN ACCOMPANYING COMEX GOLD TRADING// THURSDAY// /

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A GOOD SIZED 1941 CONTRACTS:

DEC 2019: 0 CONTRACTS, FEB>  1941 CONTRACTS APRIL: 0 AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at A RECORD 755,571,,.  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 GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 8755 CONTRACTS: 6,834 CONTRACTS INCREASED AT THE COMEX  AND 1941 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 8775 CONTRACTS OR 877,500 OZ OR 27.29 TONNES.  THURSDAY WE HAD A GAIN OF $9.85 IN GOLD TRADING….

AND WITH THAT GAIN IN  PRICE, WE  HAD A STRONG GAIN IN GOLD TONNAGE OF 27.29  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 $9.85) THEY WERE TOTALLY  UNSUCCESSFUL IN THEIR ATTEMPT TO  FLEECE  GOLD LONGS FROM THE GOLD ARENA AS WE HAD OUR STRONG GAIN IN OPEN INTEREST ON OUR TWO EXCHANGES (27.29 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 : 139,889 CONTRACTS OR 13,988,900 oz OR 435.11 TONNES (21 TRADING DAY AND THUS AVERAGING: 6897 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 21 TRADING DAYS IN  TONNES: 435.11 TONNES

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

THUS EFP TRANSFERS REPRESENTS 435.11/3550 x 100% TONNES =13.38% 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:     6,161.20  TONNES

JANUARY 2019 TOTAL EFP ISSUANCE;   531.20 TONNES

FEB 2019 TOTAL EFP ISSUANCE:             344.36 TONNES

MARCH 2019 TOTAL EFP ISSUANCE:       497.16 TONNES

APRIL 2019 TOTAL ISSUANCE:                 456.10 TONNES

MAY 2019 TOTAL ISSUANCE:                    449.10 TONNES

JUNE 2019 TOTAL ISSUANCE:                   642.22 TONNES

JULY 2019: TOTAL ISSUANCE:                    591.56 TONNES

AUG. 2019 TOTAL ISSUANCE:                    639.62 TONNES

SEPT 2019 TOTAL EFP ISSUANCE              509.57 TONNES

OCT 2019 EFP ISSUANCE                           497.16 TONNES

NOV.2019 EFP ISSUANCE:                          568.20  TONNES

 

 

 

 

 

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

 

Result: A STRONG SIZED INCREASE IN OI AT THE COMEX OF 6834 WITH THE  PRICING GAIN THAT GOLD UNDERTOOK THURSDAY($9.85)) //.WE ALSO HAD A GOOD SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 1941 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 1941 EFP CONTRACTS ISSUED, WE  HAD A STRONG SIZED GAIN OF 8755 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

1941 CONTRACTS MOVE TO LONDON AND 6834 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 27.29 TONNES). ..AND THIS  INCREASE OF DEMAND OCCURRED WITH A GAIN IN PRICE OF $9.85 WITH RESPECT TO THURSDAY’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 UP $4.10 TODAY//(COMEX-TO COMEX)

A HUGE CHANGE IN GOLD INVENTORY AT THE GLD:

A PAPER GOLD DEPOSIT OF 3.51 TONNES INTO THE GLD

DEC 27/2019/Inventory rests tonight at 892.57 tonnes

 

 

 

 

 

SLV/

 

 

WITH SILVER DOWN 3 CENTS TODAY

 

NO CHANGE IN SILVER INVENTORY AT THE SLV

 

 

DEC 27/INVENTORY RESTS AT 363.830 MILLION OZ.

 

 

 

TO ALL INVESTORS THINKING OF BUYING GOLD THROUGH THE GLD ROUTE: YOU ARE MAKING A TERRIBLE MISTAKE AS THE CROOKS ARE USING WHATEVER GOLD COMES IN TO ATTACK BY SELLING THAT GOLD.  IT SURE SEEMS TO ME THAT THE GOLD OBLIGATIONS AT THE GLD EXCEED THEIR INVENTORY

 

 

end

 

OUTLINE OF TOPICS TONIGHT

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

1.Today, we had the open interest in SILVER ROSE BY A STRONG SIZED 2620 CONTRACTS from 223,046 UP TO 225,666 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 1/2 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.

 

EFP ISSUANCE 1982

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  1982  AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 1982 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 2784  CONTRACTS TO THE 1982 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A HUMONGOUS AND CRIMINALLY SIZED GAIN OF 4766 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 23.83 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: 20.93 MILLION OZ//

 

 

RESULT: A STRONG SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 16 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// THURSDAY. WE ALSO HAD A VERY STRONG SIZED 1982 EFP’S ISSUED TRANSFERRING COMEX LONGS OVER TO LONDON. TOGETHER WITH THE STRONG  SIZED AMOUNT OF SILVER OUNCES STANDING FOR THIS MONTH, DEMAND FOR PHYSICAL SILVER CONTINUES TO INTENSIFY AS WE WITNESS SEVERE BACKWARDATION IN SILVER IN LONDON.

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

 

 

(report Harvey)

 

 

2 ) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY: Bloomberg

3. ASIAN AFFAIRS

I)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 2.32 POINTS OR 0.08%  //Hang Sang CLOSED UP 361.21 POINTS OR 1.20%   /The Nikkei closed DOWN 87.20 POINTS OR 0.36%//Australia’s all ordinaires CLOSED UP .43%

/Chinese yuan (ONSHORE) closed UP  at 6.9958 /Oil UP TO 6188 dollars per barrel for WTI and 68.05 for Brent. Stocks in Europe OPENED MOSTLY GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 6.9958 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9936 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 BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

3A//NORTH KOREA/ SOUTH KOREA

 

3b) REPORT ON JAPAN

3C  CHINA

i)China

China has come with a novel attempt to stop the Pig Ebola which is wiping out major portions of herds.  They are using shock therapy to kill the virus and so far they have experienced success.

(zerohedge)

ii)China/Huawei

Huawei has benefited greatly from state support during its rise to dominance

(zerohedge)

iii)China/Europe

Last week, Chinese Ambassador Wu threatened Germany with a “Quid Pro Quo”..if they do not use Huawei then China will not purchase German cars.  Today the threat by Beijing ambassador Ming doubled down and warned the bloc against pursuing policies to curb Chinese companies’ access to Europe claiming it damage Europe’s interests,
(zerohedge)

4/EUROPEAN AFFAIRS

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)ISIS//Nigeria

Isis followers in Nigeria capture Christians and then sent the video to a journalist. They did this in revenge for the killing of Baghdadi

(zerohedge)

ii)IRAN/RUSSIA// CHINA

The USA is not going to like this:  Sanctioned Iran is having joint naval drills with Russia and China.  The latter two countries are snubbing their noses at the uSA

(zerohedge)

6.Global Issues

BANKS/AROUND THE WORLD

How could this be possible:  banks celebrating record high stock prices with the most layoffs since 2015

(zerohedge)

7. OIL ISSUES

Ukraine/Russia/USA

My goodness this escalated fast:  Gazprom pays the Ukraine 2.9 billion dollars to settle its dispute and how agrees to purchase gas to supply Europe.  And everybody thought that the UKraine was the USA’s friend. I guess nobody is paying any attention to the USA sanctions on anybody connected to the Nord stream 2 project

(zerohedge)

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

i)The following is a must read this weekend.  It is long but well worth it. Alasdair delves deeply into the repo mess and explains why it is happening.

(Alasdair Macleod/GATA)

a must read.

ii)Pam and Russ Martens outline how a federally insured bank, or squid Goldman Sachs has lost 1.2 billion dollars on a derivative bet last quarter

(Pam and Russ Martens/Wall Street on Parade)

iii)This is something that we must pay close attention to:  an increasing number of Chinese defaults. This year; 18.6 billion dollars are gone belly up

(London’s Financial times/GATA)

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

MARKET TRADING//USA

a)Market trading/LAST NIGHT/USA

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

a)Very unusual seismic activity all along the West coast from Vancouver Island down to California. Many are quite concerned

(Michael Snyder)

b)More trouble for Boeing as lawyer and Boeing executive Judge Luttig has been fired for his short involvement in the 737 max mess.

(zerohedge)
c)Bricks and mortar operations are still in peril as the on line sales are killing them.
(Mac Slavo/SHFTplan.com)
d)With the best stock market, Illinois has only a 55% funding ratio to pay for retirees. One plan pulled 1 billion dollars from BMO needing better (riskier) returns(Mish Shedlock/Mishtalk)

iv) Swamp commentaries)

a)Bill Barr as Attorney General is after Ghislaine Maxwell for her ties to Epstein

(zerohedge)

b)This ought to be fun.  Judge Lamberth orders Hillary to testify under oath on matters concerning her illegal server and destruction of 33,000 emails.

(courtesy SteadfastClash.com)

c)Shear hypocrisy…check out what Chuck Schumer said in 1999 with respect to his prejudging Clinton’s innocence

(zerohedge)

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

LET US BEGIN:

 

 

Let us head over to the comex:

THE TOTAL COMEX GOLD OPEN INTEREST ROSE BY A STRONG SIZED 6834 CONTRACTS, UP TO A NEW RECORD OF 755,571 (SET DEC 27/2019) (ECLIPSING OUR PREVIOUS NEW RECORD OF 748,737 SET DEC 26/2019) WITH THE GAIN OF $9.85 IN GOLD PRICING // THURSDAY’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 1941 EFP CONTRACTS WERE ISSUED:

DEC: 00 ; FEB: 1941  AND APRIL: 00  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 1941 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: A STRONG 8922 TOTAL CONTRACTS IN THAT 1941 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A STRONG SIZED 6834 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 $9.85). AND THEY WERE MOST DEFINITELY UNSUCCESSFUL IN FLEECING ANY LONGS AS WE GAINED A VERY GOOD SIZED  8775 CONTRACTS ON OUR TWO EXCHANGES…..

 

NET GAIN ON THE TWO EXCHANGES ::  8775 CONTRACTS OR 877,500 OZ OR 27.29  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 93 open interest stand for a LOSS of 54 contracts.  We had 43 notices filed on THURSDAY so we LOST  11 contracts or an additional 1100 OZ will NOT stand for delivery at the comex as they will try their luck finding physical metal on the OTHER side of the pond as they  morphed into London based forwards and well as accepting a fiat bonus…

 

we had: 21 notice(s) filed upon for 2100 oz of gold at the comex.

 

The next non active contract month after Dec, is  January and it saw its OI DECREASE by 29 contracts DOWN to 2466 which is STILL UNBELIEVABLY  high for a January delivery month. Normally we see some rolling action as longs sell their January contracts and move to Feb.  This is not happening..longs are refusing to roll and are standing pat!!

The next active delivery month after January is February and here we witnessed A GAIN  OF 2732 in contracts UP to 536,493.

THE PAPER HELD FOR JANUARY IS IN VERY STRONG HANDS AND THESE GUYS ARE REFUSING TO ROLL.  THIS IS ROUGHLY 7.7 TONNES OF GOLD WHICH WILL BE A HUGE RECORD STANDING FOR A GENERALLY WEAK JANUARY DELIVERY MONTH.

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results

Total COMEX silver OI ROSE BY A very strong SIZED 2620 CONTRACTS FROM 223,046 UP TO 225,666(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 TUESDAY’S STRONG  OI COMEX GAIN OCCURRED WITH A 16 CENT GAIN IN PRICING/.

WE ARE NOW INTO THE  ACTIVE DELIVERY MONTH OF DEC.

Here we have a GAIN of 5 contracts UP to 61. We had 1 notice served up on longs yesterday, so we GAINED 6 contracts or an additional 30,000 oz will stand in this active delivery month of December AT THE COMEX 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 16 contracts to stand at 434.  The Feb non active month saw a GAIN of 81 contracts UP to 352.  March is a very active month and here we witness a GAIN of 2116 contracts UP to 178,671

 

 

We, today, had 58 notice(s) filed for 290,000, OZ for the DEC, 2019 COMEX contract for silver

Trading Volumes on the COMEX TODAY: 196,275 contracts 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY: 228,599 contracts

 

 

 

 

INITIAL standings for  DEC/GOLD

DEC 27/2019

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
79,014.385 oz
HSBC
Deposits to the Dealer Inventory in oz nil oz

 

 

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
21 notice(s)
 2100 OZ
(0.0653 TONNES)
No of oz to be served (notices)
72 contracts
(7200 oz)
0.2208 TONNES
Total monthly oz gold served (contracts) so far this month
14,702 notices
1,470,200 OZ
45.729 TONNES
Total accumulative withdrawals of gold from the Dealers inventory this month NIL oz
Total accumulative withdrawal of gold from the Customer inventory this month xxx oz

we had 0 dealer entry:

We had 0 kilobar entries

 

 

total dealer deposits: nil oz

total dealer withdrawals: 0 oz

 

we had 0 deposit into the customer account

i) Into JPMorgan: nil  oz

 

 

ii)into everybody else  0

 

total gold deposits: 0  oz

 

 

 

 

we had 1 gold withdrawals from the customer account:

 

i) Out of HSBC: 79,014.385 oz

 

 

 

 

total gold withdrawals; 79,014.385 oz

ADJUSTMENTS:  1

i Out of HSBC:  32,118.596 oz was adjusted out of the dealer and this landed into the customer account of HSBC and we will deem this a settlement;

(.9990 tonnes)

 

 

 

 

 

 

 

 

FOR THE DEC 2019 CONTRACT MONTH)Today, 0 notice(s) were issued from JPMorgan dealer account and 0 notices were issued from their client or customer account. The total of all issuance by all participants equates to 21 contract(s) of which 0 notices were stopped (received) by j.P. Morgan dealer and 0 notice(s) was (were) stopped/ Received) by j.P.Morgan customer account and 0 notices by the squid  (Goldman Sachs)

 

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 (14,702) x 100 oz , to which we add the difference between the open interest for the front month of  DEC. (93 contracts) minus the number of notices served upon today (21 x 100 oz per contract) equals 1,477,400 OZ OR 45.987 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 (14,702 x 100 oz)  + (93)OI for the front month minus the number of notices served upon today (21 x 100 oz )which equals 1,474,400 oz standing OR 45.953 TONNES in this  active delivery month of DEC.

 

 

We LOST 11 contracts or an additional 1100 oz will NOT stand at the comex as the  morphed into London based forwards.

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE ONLY 31.017 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS.

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

SEPT:                                                                      5.4525 TONNES

 

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

NOV……                                                                5.3841 tonnes

DEC………………………….                                              45.953 TONNES

 

total: 121.932 tonnes

ACCORDING TO COMEX RULES:

 

IF WE INCLUDE THE PAST 5 MONTHS OF SETTLEMENTS WE HAVE 19.2540 TONNES SETTLED

 

IF WE ADD THE FIVE DELIVERY MONTHS: 121.932  tonnes

 

Thus:

121.932 tonnes of delivery –

19.2540 TONNES DEEMED SETTLEMENT

= 102.678 TONNES STANDING FOR METAL AGAINST 31.017 TONNES OF REGISTERED OR FOR SALE COMEX GOLD! THIS IS WHY GOLD IS SCARCE AT THE COMEX.

 

total registered or dealer gold:   1,234,772.557 oz or  38.406 tonnes
which  includes the following:
a) registered gold that can be used to settle upon: 997,218.9 oz (31.017 tonnes)
b) pledged gold held at HSBC  which cannot settle upon:  237,553.646 oz  ( 7.38989)//+
    total  7.38989 tonnes
true registered gold  (total registered – pledged tonnes  997,218.9  (31.017 tonnes)
total registered, pledged  and eligible (customer) gold;   8,589692.227 oz 267.175 tonnes

 

 

THE GOLD COMEX IS NOW IN STRESS AS
1. GOLD IS LEAVING THE COMEX 
2. GOLD IS LEAVING THE REGISTERED CATEGORY OF THE COMEX.

WHY ARE THEY NOT SETTLING?

 

THE COMEX IS AN ABSOLUTE FRAUD..

 

end

And now for silver

AND NOW THE  DELIVERY MONTH OF DEC.

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
DEC 27 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 610,007.393 oz
CNT
Delaware

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
599,277.390 oz
CNT
No of oz served today (contracts)
58
CONTRACT(S)
(290,000 OZ)
No of oz to be served (notices)
3 contracts
 15,000 oz)
Total monthly oz silver served (contracts)  4183 contracts

20,915,000 oz)

Total accumulative withdrawal of silver from the Dealers inventory this month NIL oz
Total accumulative withdrawal of silver from the Customer inventory this month

**

 

 

we had 0 inventory movement at the dealer side of things

 

 

 

total dealer deposits: nil oz

total dealer withdrawals: nil oz

i)we had  1 deposits into the customer account

into JPMorgan:   0

 

ii) Into HSBC: 599,277.390 oz

 

 

 

 

 

 

 

 

 

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

JPMorgan now has 161.3 million oz of  total silver inventory or 50.77% of all official comex silver. (161.3 million/317.74 million

 

 

 

 

total customer deposits today:  599,277.390 oz  oz

 

we had 2 withdrawals out of the customer account:

 

i) Out of CNT:  600,075.313 oz

ii) Out of Delaware: 9932.08 oz

 

 

 

 

 

total withdrawals; 610,007.393  oz

We had 0 adjustment:

 

 

 

total dealer silver:  89.179 million

total dealer + customer silver:  317.781 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The total number of notices filed today for the DEC 2019. contract month is represented by 58 contract(s) FOR 290,000 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 4183 x 5,000 oz = 20,915,000 oz to which we add the difference between the open interest for the front month of DEC. (61) and the number of notices served upon today 58 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the DEC/2019 contract month: 4183 (notices served so far) x 5000 oz + OI for front month of DEC (61)- number of notices served upon today (58) x 5000 oz equals 20,930,000 oz of silver standing for the DEC contract month.

 

We gained 6 contracts or an additional 30,000 oz will stand at the comex as they refused to morph into London based forwards.

 

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

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 58 notice(s) filed for 290,000 OZ for the DEC, 2019 COMEX contract for silver

 

 

TODAY’S ESTIMATED SILVER VOLUME:  66,357 CONTRACTS //

 

 

CONFIRMED VOLUME FOR YESTERDAY: 92,928 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF 92,928 CONTRACTS EQUATES to 463 million  OZ   66.1% OF ANNUAL GLOBAL PRODUCTION OF SILVER..makes sense!!

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

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

 

end

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

NPV for Sprott

 

1. Sprott silver fund (PSLV): NAV FALLS TO -1.51% ((DEC 27/2019)
2. Sprott gold fund (PHYS): premium to NAV RISES TO -0.75% to NAV (DEC 26/2019 )
Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ -1.51%

(courtesy Sprott/GATA)

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

NAV 15.12 TRADING 14.60///DISCOUNT  3,46

 

END

 

 

 

 

And now the Gold inventory at the GLD/

DEC 27/WITH GOLD UP $4.10 TODAY: A BIG  CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 3.51 PAPER TONNES INTO THE GLD////INVENTORY RESTS AT 892.37 TONNES

DEC 26/WITH GOLD UP $9.85 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 2.93 TONNES INTO THE GLD.///INVENTORY RESTS AT 888.86 TONNES

DEC 24/WITH GOLD UP $14.60//NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 885.93 TONNES

DEC 23/WITH GOLD UP $7.75: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 2.64 TONNES OF PAPER GOLD INTO THE GLD////INVENTORY RESTS AT 885.93 TONNES

DEC 20/WITH GOLD DOWN $3.15 TODAY; NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 883.29 TONNES

DEC 19/WITH GOLD UP $6.65 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER DEPOSIT OF 2.65 TONNES INTO THE GLD///INVENTORY RESTS AT 883.29 TONNES

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//

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

DEC 27/2019/Inventory rests tonight at 892.37 tonnes

*IN LAST 733 TRADING DAYS: 44.88 NET TONNES HAVE BEEN REMOVED FROM THE GLD
*LAST 633 TRADING DAYS: A NET 122.17 TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

DEC 27/WITH SILVER DOWN 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 363.830 MILLION OZ

DEC  26//WITH SILVER UP 16 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 363.830 MILLION OZ//

DEC 24/WITH SILVER UP 32 CENTS TODAY: NO CHANGE IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 363.830 MILLION OZ///

 

DEC 23/WITH SILVER UP 26 CENTS TODAY: A HUGE PAPER WITHDRAWAL OF 1.028 MILLION PAPER OZ IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 363.830 MILLION OZ//

DEC 20/WITH SILVER UP 7 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 364.858 MILLION OZ//

DEC 19/WITH SILVER UP 11 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 364.858 MILLION OZ//

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//

 

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

 

 

DEC 27:  SLV INVENTORY

363.830 MILLION OZ

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 2.12/ and libor 6 month duration 1.92

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

G0LD LENDING RATE: – .20

GOLD LEASE RATES FALLS FURTHER/INDICATES SCARCITY

 

XXXXXXXX

12 Month MM GOFO
+ 2.00%

LIBOR FOR 12 MONTH DURATION: 2.01

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.01

end

 

 

end

 

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

 

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

The following is a must read this weekend.  It is long but well worth it. Alasdair delves deeply into the repo mess and explains why it is happening.

(Alasdair Macleod/GATA)

a must read.

Alasdair Macleod: Bond worries and gold

 Section: 

By Alasdair Macleod
GoldMoney.com, St. Helier, Jersey, Channel Islands
Thursday, December 26, 2019

There is evidence that U.S. Treasury bond yields may continue to rise, exposing the debt trap in which the U.S. government finds itself. Market participants don’t realise it yet, but the dollar-based monetary system is spinning out of control. This will become obvious as the crisis stage of the credit cycle, which we now appear to be entering, becomes evident.

… 

The outlook for monetary inflation is dire. Not only will governments fund themselves through “quantitative easing,” but central banks will be forced to inflate even more to pay for government deficits significantly greater than currently forecast. And when markets stop taking government statistics on inflation as the gospel truth, the interest cost of government funding will rise and rise, reflecting an increasing rate of time preference for fiat currencies that will be losing their purchasing power at an accelerating rate.

In a world where all fiat currencies will face enormous challenges, using yardsticks such as trade-weighted indices will be misleading. The best gauges of the slide in fiat currencies will be commodities, particularly commodity monies, gold and silver. …

… For the remainder of the analysis:

https://www.goldmoney.com/research/goldmoney-insights/bond-worries-and-g…

* * *

Help keep GATA going:

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

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end

Bond worries and gold

There is evidence that US Treasury bond yields may continue to rise, exposing the debt trap in which the US government finds itself. Market participants don’t realise it yet, but the dollar-based monetary system is spinning out of control. This will become obvious as the crisis stage of the credit cycle, which we now appear to be entering, becomes evident.

The outlook for monetary inflation is dire. Not only will governments fund themselves through QE, but central banks will be forced to inflate even more to pay for government deficits significantly greater than currently forecast. And when markets stop taking government statistics on inflation as the Gospel Truth, the interest cost of government funding will rise and rise, reflecting an increasing rate of time preference for fiat currencies which will be losing their purchasing power at an accelerating rate.

In a world where all fiat currencies will face enormous challenges, using yardsticks such as trade weighted indices will be misleading. The best gauges of the slide in fiat currencies will be commodities, particularly commodity monies, gold and silver.

 KS 1

Introduction

The chart above, of the US 10-year Treasury yield is shows that its yield bottomed at the end of August, when it had more than halved from the levels of October 2018. What, if anything, does it mean? Some would argue that it is good to see a positive yield curve again, implying the recession, or the risk of one, has gone away. But if US Treasury yields have bottomed out, then in the fullness of time they will continue to rise. Chartists might even claim it is setting up for a bullish golden cross, like the one earlier in the chart on 17 November 2016, which marked the beginning of a significant rise in bond yields.

That would be a worry, since equity markets have flown to places where bond yields don’t exist. But there are more solid concerns about the course of bond yields, other than charting ephemera. Despite the massive expansion of money and credit since the Lehman crisis, there is a shortage of liquidity, because the Fed is having to inject half a trillion dollars into the banking system to keep overnight levels suppressed at the Fed Funds Rate target.

Informed opinion suggests that there is indeed a liquidity crisis. The banking system in New York has become strained through banks loaded with US Government debt and providing repos to hedge funds who have shorted euros and yen to buy T-bills and short-dated government coupon debt. The shortage has occurred because the largest banks, designated globally systemically important banks (GSIBs) must demonstrate excess reserves to cover obligations thirty days out. The strains for this Basel III requirement are expected to increase at the next quarter-end, i.e. 31 December.

These strains first became evident in the repo market, which blew up three months ago, on the day Deutsche Bank completed the sale of its prime brokerage to BNP. We don’t know if these events were related, but as any investigating detective will tell you, pure coincidence must be dismissed until proven otherwise. In any event, the problems in the repo market have continued, so having noted that perhaps the Deutsche Bank sale did not go as planned, we must go with the GSIB excess reserves explanation.

Looked at in this light, the persistent rise in UST bond yields is threatening. Unless the Fed simply floods the markets with liquidity, they seem set to rise further. If the Fed does not, the GSIBs have two courses of action, and they may be forced to take both. First, they could be forced to sell down their US Treasuries in order to create intraday liquidity needs by releasing some of their required reserves to be categorised as excess. Second, they can refuse to roll hedge fund repos, forcing hedge funds to sell US Treasuries and T-bills and then sell their dollars to close their shorts in euros and yen. The withdrawal of liquidity could wipe out one or more major relative value (RV) funds, invoking the ghost of Long-Term Capital Management, which ran into trouble in 1998. [i]

All this is now known, so it would be surprising if the Fed fails to act to contain a year-end crisis. But its actions are limited to providing liquidity for the banks. It will be up to the banks if they decide to use that liquidity to continue to accommodate the RV funds.

Foreign buyers hold the dollar key

Let us assume for a moment that we get through the year end without mishap. We will not have dealt with the underlying problem, which is who is going to buy the $1–1½ trillion of US government debt to be issued in 2020. In the past it has been principally foreigners, banks and RV hedge funds as described above. On a net basis the US saver has not been involved for a very long time, except passively through managed pension funds.

According to US Treasury TIC data, in the year to October major foreign holders added $580.5bn to their holdings of Treasury bills, T-Bonds and Notes. The balance will have come directly and indirectly from domestic credit expansion, including the banks and the RV hedge funds. But from August, foreign investors have been net sellers to the tune of $77.4bn. Until then, every successive month had seen an increase, so it appears foreign demand is stalling, which could have fed into the repo crisis as the GSIB banks in New York and RV funds ended up with too much US Government paper.

Foreign dollar demand is almost certainly affected by the sharp slowdown in global trade. This has happened for two reasons: President Trump’s tariff war against China and others has stalled international trade and at the same time, having been expanding for the last nine years, the credit cycle is due to run out of steam. Together they are recessionary headwinds, probably synergistic, which reduce the level of dollars in in the correspondent banking system foreigners need to hold for liquidity.

China is the second largest holder of US government paper and has been reducing her position in recent months. As to her future reserve policies, commercial considerations are being complicated by politics. She understands that America is desperate for global investment flows to finance US Government debt, and that China’s infrastructure plans would compete for them which explains America’s hidden agenda over Hong Kong. China bungled her management of that situation, and apparently is now exploring the use of Macau as an investment channel for foreign inward investment.

It is probably too late, the damage to investing in China having been done. But it is hard to see why China should just roll over on this issue and continue to buy US government bonds. More likely US Government debt will now be viewed as a source of funds to replace lost inward investment through Hong Kong.

We can now see a best and worst case for the dollar and US Treasury funding. The best case is stagnating demand from abroad, which throws the onus onto domestic investment, which, in the absence of an increase in savers, will be through QE and the inflation of bank credit.

The worst case will see not only stagnant foreign demand, but active selling down of current positions, due to slumping economies and China in particular selling actively. American investors seem generally complacent about this possibility, arguing that foreigners will always need dollars, and more so in a credit crisis. While there is some force in this argument, it ignores the fact that foreign ownership of dollars and dollar investment is already very high at roughly $23 trillion of which over $4 trillion is in deposit accounts, while US ownership of foreign currency liquidity is a relatively trivial figure.

Bearing all this in mind, we must assume that at a minimum US banks and hedge funds between them will be funding all the budget deficit and may even have to absorb existing stock from foreigners. But surely, one imagines a critic asking, in the absence of a change in the savings ratio, a budget deficit is a matter of an accounting identity and will give rise to a similarly sized balance of payments deficit, and so long as dollars accumulate in foreign hands, they must form the capital inflows that finance the budget deficit. Therefore, dollars will continue to accumulate in foreign hands, and they must be invested.

The accounting identity argument is correct, but there is more than one way to skin a rabbit. Dollars received by foreigners can always be sold in the foreign exchanges instead of being reinvested, which given the relative lack of foreign currency liquidity in the hands of domestic Americans, could have a dramatic effect on the exchange rates.

Alternatively, the gap can be closed by the inflation of money through quantitative easing and the expansion of bank credit. In effect, the existing stock of dollar deposits is diluted to bridge the shortfall between a budget deficit and the lack of inward capital flows recorded in the balance of payments.

In this context, the chart below of the dollar’s trade-weighted index appears to show the dollar is struggling to advance and may be losing the bullish momentum that developed shortly after President Trump was elected.

KS 2

If, as the chart suggests, the dollar could be heading lower, it would fit in with a diminution of foreign capital inflows. But the major component of this index is the euro, so it is not an accurate representation of the dollar’s weighting with respect to trade imbalances, which are the normal source of capital flows. But in the case of the euro, it has already been sold down by RV hedge funds to strip out the interest differential by selling euros short and buying dollars. According to Hedgeweek.com, six months ago this form of hedge fund arbitrage stood at $865.6bn, a truly significant sum, most of which will have accumulated since 2018 Q1, when the dollar’s bull phase commenced. [ii]

Not all of it would have involved selling down the euro, because in the past the Japanese yen has been the short leg of choice in an interest rate arbitrage. It is clear that the repo crisis tells us that by financing this speculation the US GSIBs have expanded their balance sheets too much and will need a substantial increase in their excess reserves to continue to finance this trade, thereby avoiding a crash in both the US bond market and the dollar. While this problem has surfaced at this year-end, it will be a continuing problem thereafter.

This brings us back to our first chart, of the 10-year T-bond yield. The reasons why it may have bottomed and will rise further are becoming clear. If a rising bond yield is accompanied by a falling dollar it will be because markets recognise an acute funding crisis is upon the US government, reminiscent of the 1970s in sterling markets.

A falling dollar will be the signal, so we must watch the trade-weighted index and, more importantly, the gold price. The gold price particularly acts as the canary in a coal mine, and in that context Comex open interest is hitting record levels, which without the price rising indicates a suppression operation is already in place. It is therefore reasonable to suggest the combination of the lack of excess reserves in the GSIBs and the suppression of gold is circumstantial evidence that a financial crisis is already on its way.

Markets will take control from central banks

When the funding difficulties of the US Government become more obvious, investment strategists are bound to rethink the course of interest rates in other fiat currencies, which face similar pressures from increasing budget deficits. Being aware that monetary policies are not working as intended, central banks have already encouraged their governments to deploy additional fiscal stimulus. Even before welfare costs rise and tax income falls due to a developing global recession, it appears that government borrowing world-wide is set to accelerate.

With the credit cycle on the turn, one thing is for sure, and that is what central banks call the business cycle will follow. The mistake made by all mainstream commentators and economists is to not appreciate that the problem is one of the central banks’ own making, and that once the credit cycle is set in motion it cannot be simply stopped by reducing official interest rates. We saw this proved ten years ago, when the Fed and other central banks had to inflate the quantity of money by however much base money was required and by taking failing institutions into public ownership. In the UK the only significant bank which successfully resisted needing a government bail-out was Barclays, and executive directors at the time are still having to answer for their actions in the courts. It seems that not only is failure rewarded, but a major bank not failing has become a criminal act.

The fact that some central banks have unsuccessfully imposed negative rates has not yet led to a realisation that attempting to control the cycle in this way simply does not work. The periodic credit and systemic crises are increasingly destabilising and the dynamics behind the next one indicate it will be on a scale significantly greater than the Lehman crisis eleven years ago. The banking scene is set for a reversion from incautious greed to abject fear, fear of lending to anyone and to any other bank. And the weakest banks are to be found in the Eurozone. Even in the EU’s strongest economy, the two largest private banks, Deutsche Bank and Commerzbank, by their share prices are signalling a slide towards bankruptcy.

At some stage, and it could only be a matter of weeks or even days, the global outlook will cause all GSIB banks to become considerably more cautious, withdrawing lending facilities from smaller banks, financial speculators (hedge funds), and businesses alike. Lending to the last category ceases in two ways. In capital markets banks begin to cut their high levels of exposure to sub-investment grade bonds and syndications, and they withdraw working capital facilities for medium and small businesses. The crisis phase of the credit cycle is then irreversible.[iii]

The credit-induced recession will be proportional to the scale of the preceding credit expansion. It feeds through to an escalation of government borrowing in all welfare-dependent nations, because of the fall in tax receipts and the increase in welfare costs.

If US bond yields rise, they will do so either because foreigners are selling the dollar, or because domestic prices, reflecting a fall in the dollar’s purchasing power, begin to rise at a faster pace. It is already an open secret that official price inflation figures bear no relation to reality and only financial markets are wedded to the CPI myth. In fact, not only are government statistics inaccurate, but all statistics are reported in funny money. When US dollar markets wake up, the same will be true of markets in other currencies, and the greater the level of interest rate distortion the more severe the crisis is likely to be.

How it plays out in different nations and their currencies is not so much down to the scale of government borrowing in deteriorating circumstances, but whether savers respond to the financing demands of their governments. For this reason, monetary inflation rates will be offset by a tendency for Japanese and Chinese savers to increase their bank deposits rather than spend. In the Eurozone and Britain, this is less the case. Increasing monetary inflation will end up fuelling rising eurobond and sterling bond yields more rapidly than their equivalents in Japan and probably China.

Commodities and commodity money

The point has been already made in this article that measuring the dynamics behind a credit crisis is distorted by government statistics not fit for the purpose and by the elastic nature of fiat currency. Furthermore, monetary planners, portfolio managers and the commentariat inhabit a Keynesian fantasy land and only understand rising prices to be directly related to increased demand, and falling prices to falling demand. Presumably, this explains why they associate a CPI rising at two per cent with a healthy economy.

The key to understanding the error is that money is only objective in its value for the purpose of individual transactions. But give money a temporal context and it becomes clear that money’s purchasing power varies as well as the cost of anything.

If it is expected that the rate at which a currency loses purchasing power is about to increase, then commodity prices measured in that currency will rise without any improvement in demand. Demand can even fall, and prices rise, if the purchasing power of the currency declines sufficiently. This condition can be temporarily overcome by an investors’ panic when they sell assets, such as bonds and equities, in order to escape falling prices, but once that initial effect has quickly worn off, the relationship between money and goods will adjust to the public’s general desire to hold money as opposed to goods.

We have a contemporary example. At the time of the Lehman crisis the price of gold declined from $1,000 in March 2008 to $700 the following October, before rising to $1,920 three years later. But this time is likely to be different, because the rate of monetary inflation before the Lehman crisis varied little in the preceding few years, compared with subsequently. Following Lehman, all major central banks expanded money quantities very rapidly, so the next crisis comes against a background of already inflated currencies before a further acceleration in supply. Depending how the next credit crisis evolves, there may not be a dip in the gold price at all.

Instead, gold and other commodity prices, precious or otherwise, will be bought and sold against a background of rapidly debasing currencies. We know this, because renewed monetary expansion in the form of quantitative easing is taking place even before any crisis materialises. And when we hear luminaries such as Christine Lagarde at the ECB talking about QE to finance eco-friendly infrastructure developments directly, we know that central bankers and their governments now view monetary inflation much as it was in the Weimar Republic: an infinite source of funds.

Despite attempts by the bullion banks to suppress the evidence from the gold price of what is likely to turn out to be the early stages of a widespread fiat currency collapse, if matters progress on the lines described in this article, gold, silver and other commodities will rise priced in fiat. Initially it is likely to reflect the fact that such assets are under-owned. But then another effect is likely to take over, as the public begins to realise what is going on and start dumping fiat currencies for gold, silver and even bitcoin.

Ninety years ago, it was called a crack-up boom, the last dash out of currency for anything not printed by the government. It will happen differently this time, because it always does. But now that inflationary financing is not only required to balance governments’ books but to finance the expansion of their spending, happen it will.

END

 

Pam and Russ Martens outline how a federally insured bank, or squid Goldman Sachs has lost 1.2 billion dollars on a derivative bet last quarter

(Pam and Russ Martens/Wall Street on Parade)

 

Pam and Russ Martens: Goldman’s federally-insured bank loses $1.2 billion in derivative bets

 Section: 

By Pam and Russ Martens
Wall Street on Parade
Thursday, December 26, 2019

A week before Christmas when Americans were focused on either the impeachment proceedings or holiday preparations, the Office of the Comptroller of the Currency (OCC) quietly released its quarterly report on the trading and derivative activities of Wall Street’s casino banks. It contained a humdinger in, literally, red ink.

The report showed that Goldman Sachs Bank USA, which is, insanely, a federally-insured bank backstopped by the U.S. taxpayer that is part of the Goldman trading colossus, had lost $1.24 billion trading interest rate derivatives during the third quarter of this year. According to the Federal Deposit Insurance Corp., the bank holds only $149.8 billion in deposits while the OCC reports it has $49 trillion in notional derivatives (face amount).

… 

Profits in other derivative trading areas, like the $1.14 billion Goldman Sachs Bank USA made trading foreign exchange derivatives, allowed the federally-insured unit of Goldman Sachs to eke out a $71 million net trading profit on the derivative bets it had made during the quarter, according to the OCC report.

If you want to understand the relevant history on why the New York Fed is throwing hundreds of billions of dollars each week at Wall Street’s trading houses, here’s a quick tutorial on the rapid financial collapse on Wall Street in 2008. …

… For the remainder of the report:

https://wallstreetonparade.com/2019/12/goldman-sachs-federally-insured-b…

Goldman Sachs Federally-Insured Bank Loses $1.2 Billion in Interest Rate Derivative Bets

By Pam Martens and Russ Martens: December 26, 2019

David Solomon, Chairman and CEO, Goldman Sachs

David Solomon, Chairman and CEO, Goldman Sachs

 

A week before Christmas when Americans were focused on either the impeachment proceedings or holiday preparations, the Office of the Comptroller of the Currency (OCC) quietly released its quarterly report on the trading and derivative activities of Wall Street’s casino banks. It contained a humdinger in, literally, red ink. The report showed that Goldman Sachs Bank USA, which is, insanely, a federally-insured bank backstopped by the U.S. taxpayer that is part of the Goldman trading colossus, had lost $1.24 billion trading interest rate derivatives during the third quarter of this year. According to the Federal Deposit Insurance Corporation, the bank only holds $149.8 billion in deposits while the OCC reports it has $49 trillion in notional derivatives (face amount). (See Table 7 in the Appendix at this link.)

Profits in other derivative trading areas, like the $1.14 billion Goldman Sachs Bank USA made trading foreign exchange derivatives, allowed the federally-insured unit of Goldman Sachs to eke out a $71 million net trading profit on the derivative bets it had made during the quarter, according to the OCC report.

If you want to understand the relevant history on why the New York Fed is currently throwing hundreds of billions of dollars each week at Wall Street’s trading houses, here’s a quick tutorial on the rapid financial collapse on Wall Street in 2008. Wall Street banks were very much aware in 2008 that they had created a house of cards by placing trillions of dollars of their derivative bets with weak counterparties. But they didn’t know just how much exposure each bank had or which counterparties would collapse first because the derivative bets were mostly private contracts between two counterparties. (That situation remains today.) So the Wall Street banks simply stopped lending to each other and credit markets froze.

That forced the Federal Reserve to throw a cumulative $29 trillion in all directions to bail out not just U.S. banks on Wall Street but the foreign banks that were on the other side of these reckless and irresponsible derivative trades.

This chart from the Financial Crisis Inquiry Commission shows just how much of a derivatives casino Goldman Sachs and the other major Wall Street banks had become by June of 2008.

Phil Angelides, the Chair of the Financial Crisis Inquiry Commission (FCIC) stated the following on June 30, 2010, at a hearing convened to examine “The Role of Derivatives in the Financial Crisis.”

“I must say that despite 30 years in housing, finance, and investment — in both the public and private sectors — I had little appreciation of the tremendous leverage, risk, and speculation that was growing in the dark world of derivatives. Neither, apparently, did the captains of finance nor our leaders in Washington.

“The sheer size of the derivatives market is as stunning as its growth. The notional value of over the-counter derivatives grew from $88 trillion in 1999 to $684 trillion in 2008. That’s more than ten times the size of the Gross Domestic Product of all nations. Credit derivatives grew from less than a trillion dollars at the beginning of this decade to a peak of $58 trillion in 2007. These derivatives multiplied throughout our financial markets, unseen and unregulated. As I’ve explored this world, I feel like I have walked into a bank, opened a door, and seen a casino as big as New York, New York. Unlike Claude Rains in Casablanca we should be ‘shocked, shocked’ that gambling is going on.

“As the financial crisis came to a head in the fall of 2008, no one knew what kind of derivative related liabilities the other guys had. Our free markets work when participants have good information. When clarity mattered most, Wall Street and Washington were flying blind…

“In June 2008, Goldman’s derivative book had a stunning notional value of $53 trillion.”

After a decade of so-called financial reform, Wall Street and Washington are still flying blind and Goldman now has a federally-insured bank to gamble in derivatives as federal regulators yawn, Congress de-regulates further and the New York Fed relaunches its multi-trillion-dollar bailout funnel.

Wall Street On Parade is of the well-researched opinion that this is the most corrupt era in the history of Wall Street and its lackeys in Washington.

end

This is something that we must pay close attention to:  an increasing number of Chinese defaults. This year; 18.6 billion dollars are gone belly up

(London’s Financial times/GATA)

Corporate defaults in China surge in 2019 to record $18.6 billion

 Section: 

By Don Weinland
Financial Times, London
Thursday, December 26, 2019

Corporate defaults in China surged to a record high in 2019, raising new questions over how policymakers in Beijing will manage mounting financial distress among large private and state-owned companies.

Onshore corporate defaults hit 130 bn renminbi ($18.6 billion) in the final weeks of the year, breaking the record of Rmb 122 billion last year, according to data compiled by Bloomberg, as economic growth fell to a three-decade low.

… 

Private companies that expanded rapidly in recent years, accruing large piles of debt, have been at the heart of the explosion in corporate distress. Some of the country’s leaders in sectors such as chemicals and textiles have faced financial pressures in recent weeks. …

… For the remainder of the report:

https://www.ft.com/content/068a83e0-27a7-11ea-9305-4234e74b0ef3

end

iii) Other physical stories:

Wait Till A Primary Currency Plug Is Pulled!

Posted December 27th, 2019 at 10:25 AM (CST) by J. Johnson & filed under General Editorial.

Great and Wonderful Friday Morning Folks,

      Gold is still adding digits to its value with the trade at $1,515.50, up $1.10 from the Comex close with the high at $1,518.70 and the low close by at $1,512.10. Silver is giving “the signal” that failed the last time with the trade at $17.92, down 7 cents after hitting a low of $17.845 with the high at $18.025. The US Dollar finally got unstuck and is weakened after being supported like it has with the trade at 96.77, down 34.5 points with the low nearby at 96.735 and the high up at 97.160. Of course, all of this was done before 5am pst, the Comex open, the London close, and after Nancy was given the honors of being Trumps number one fund raising “employee of the month”.

           The Emerging Markets Currency watch is something we do to point out what will happen when the plug of support is pulled from the currency tub when measured against the precious metals. For instance, Venezuela is now proving Gold’s worth in Bolivars with the value pegged at 15,136.06 proving an additional 42.95 more Bolivars are needed to buy an ounce with Silver at 178.976 Bolivar proving a loss of 1.348 overnight. Argentina’s currency, unplugged from the Banker’s Matrix, now has Gold valued at 90,770.77 Peso’s showing a gain of 481.41 with Silver at 1,071.61 Peso’s showing a 7.41 A-Peso drop in value. The Turkish Lira, the most recent currency that’s missing it’s plug, now has Gold valued at 9,028.73 showing an additional 52.11 Lira is needed to buy an ounce with Silver valued at 106.765 showing a loss of 0.478 T-Lira.

      Keep this thought in the back of your mind, at one time the Argentine Peso was linked 1 to 1 to the US Dollar. When Jim and Bill talk about the value of Gold going into the stratosphere, these emerging currencies help prove the point! Wait till the plug of a primary currency is pulled, then compare that move to these emerging market currency moves that increased the value of precious metals in their respected nations. What a time it will be to remember all those people who quickly responded that this is not going to happen and claimed the idea of Gold going to $80,000+ US Dollars, is not possible! I agree with Jim and Bill! Just look at the hundreds of billions of dollars being created this week (and since Sept 17th) out of thin air, that had to be put into the debt-based system to tell us how wrong we are about Silver and Gold.

      How many other emerging market currencies have to be devalued before a primary goes? Will other emerging currencies be used first to keep the system awash in fiat before a primary gets the plug pulled? What will interest rates do to the system, if they are cut, or added to, during this period of time? Do you need any more evidence to hold Silver and Gold? I don’t!

      Yesterday’s activities in the December Silver Delivery contract became more active with a Volume increasing to 53 by the Comex close, and by widening the trading range from a penny to a 10.5 cent range between $17.985 and $17.88 with the last single lot trade at the low with the adjusted close at $17.894. Also, of note from yesterday’s activities is the increase in the demands for physical which now stands at 61 proving an additional 5 lot order was added to the demand count but no showing where the other additional volume landed. Was it EFP’s to London or did more pending orders get filled as we close out the week? At this very moment, there has been no activity in the delivery month at all. Maybe when the Comex opens the Resolute buyer will still be Resoluting.

      One thing for sure, the Comex shorts are still not afraid (when they should be) as the Overall Open Interest gained another 2,633 more short positions putting the total now at 225,805 Overnighters on a 13.5 cent increase in price. The highest Open Interest in Silver Ever (and so far,) is 244,196. Comex Short Traders are only 18,391 positions away from proving once again that the system is failing as more paper is allowed to be used instead of allowing the supply and demand to control the price. Also, Gold made a new “Life of Paper Contract High” as well with its new total at 755,719 Overnighters proving a paper gain of 6,982 more short contracts against the price.

      So much is going on and at the same time so much printing has to happen to keep liquidity high. In the meantime, we still suggest people hold onto the physicals, in their own hands and out of the system. Enjoy the day, have a great weekend, and fear not, because you hold Silver and Gold!

Stay Strong!

JJohnson

end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

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

i) Chinese yuan vs USA dollar/CLOSED / LAST AT: 6.9958/ 

 

//OFFSHORE YUAN:  6.9934   /shanghai bourse CLOSED DOWN 2.32 POINTS OR 0.08%

HANG SANG CLOSED UP 361.21 POINTS OR 1.20%

 

2. Nikkei closed DOWN 87.20 POINTS OR 0.36%

 

 

 

 

3. Europe stocks OPENED MOSTLY GREEN/

 

 

 

USA dollar index DOWN TO 97.15/Euro RISES TO 1.1152

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:: 61.88 and Brent: 68.05

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund FALLS TO -.325%/Italian 10 yr bond yield DOWN to 1.41% /SPAIN 10 YR BOND YIELD DOWN TO 0.40%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.66: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.46

3k Gold at $1410.95 silver at: 17.84   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 30/100 in roubles/dollar) 61.93

3m oil into the  61 dollar handle for WTI and 68 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 .9759 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0883 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year FALLING to 0.25%

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 1.89% early this morning. Thirty year rate at 2.32%

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

6.  TURKISH LIRA:  UP  TO 5.9586..

“Everything Is Surging”: Stocks Hit New Record High As Traders Capitulate To Year-End Meltup

With just three trading days left in the year, global stocks and S&P futures hit fresh all time highs led by tech stocks as investors capitulated to the year-end meltup. The S&P is now set to surpass the 29.6% full year return of 2013 at which point 2019 will be the best year in 22 years, since the 31% return posted in 1997.

“Everything is surging” was the only comment from a lonesome prop trader surrounded by algos on Friday morning, and with nothing tangible to explain the latest bout of euphoria, some used the same strawman that has been used to justify the rally for much of the past year: trade optimism. Indeed, as Reuters notes, traders returned from their Christmas and Boxing Day break “to digest comments from Beijing that it was in close contact with Washington about an initial trade agreement. Earlier, U.S. President Donald Trump had talked up a signing ceremony for the recently struck phase-one trade deal.

 

Needless to say that was enough, and after yesterday’s furious tech meltup, the rally has continued on the last day of the week, with global markets a sea of green.

After hitting a record high of 9,000 on Thursday, the tech-heavy Nasdaq Composite was set for a 12th consecutive up day, the longest such stretch since 2009, buoyed by computer and retail stocks, with Amazon.com Inc.’s “record-breaking” holiday season, while AAPL is now up more than 100% from its January 3, 2019 lows.

Amazon surged on Thursday following reports of strong holiday-season revenue, with e-commerce sales surging according to Mastercard SpendingPulse, which reassured investors that U.S. consumers are feeling confident. A solid rebound for industrial profits in China also buoyed sentiment, with investors now looking to the initial U.S.-China trade deal to sustain gains in the new year.

Equities rose across Europe, except in Italy, with the Stoxx Europe 600 index helped by gains in export-heavy German shares, and set for a third all-time closing high, hours after gains in communications-services shares drove up Asian markets. European shares were on course for their best year since the financial crisis. The UK’s FTSE 100 was set for its best run in three years, adding 0.4%. Mining companies provided the biggest boost, with Glencore and BHP Group climbing about 2% each.

The positive tone was set earlier in Asia, where the MSCI index of Asia-Pacific shares ex-Japan jumped 0.8% to 555.39, a level not seen since mid-2018. It is up 15.5% so far this year. Asian stocks gained, led by communications and technology shares, after the technology sector pushed U.S. indexes to new records. The MSCI Asia Pacific Index gained 0.2%, with most markets in the region in the green. Hong Kong’s Hang Seng Index gained 1.3% and India’s S&P BSE Sensex Index rose 0.8%, while China’s Shanghai Composite dropped 0.1%. China’s National Bureau of Statistics said the industrial profit outlook remains uncertain as the Chinese economy is still facing relatively heavy downward pressure despite industrial profits rising at the fastest pace in 8 months. China’s blue-chip was down 0.1%, although for the week the index was up 0.1%.

Profits at industrial companies in China in November rose 5.4%, growing at the fastest pace in eight months, breaking a three-month declining streak, as production and sales quickened. But broad weakness in domestic demand remains a risk for earnings next year, say analysts.

As a result of the euphoria across Asia, Europe and US futures, world stocks also scaled fresh record highs on Friday and oil prices stayed buoyant in a holiday-shortened week, as optimism grew that a U.S.-China trade deal would soon be signed.

The Fed’s unprecedented dovish reversal, somewhat stronger economic data, and corporate profits have helped lift stocks this year, along with trade-related optimism. Markets are now waiting for January’s fourth-quarter financial results to see whether sentiment among companies has improved. But some analysts are wary about risks ahead in 2020.

“The trade war … is far from over,” Piotr Matys, FX strategist at Rabobank, wrote in a research note. “In our view, this is just a temporary truce. Another unsolved major issue is Brexit. Geopolitical risk can suddenly resurface.”

Investors in the last 12 months – with all the uncertainty – actually have had a defensive posture,” Alphabook Chief advisors Martin Malone told Bloomberg TV. “Cash levels are just too high, and people are going to have to invest. We probably are going to continue very solid gains in the next quarter.”

Here’s the bizarro observation he is referring to: in a year of near-record performance, bullish strategies posted a negative return!

In FX, the dollar drop continued, as the greenback slid against all its major peers Friday. The Bloomberg dollar index is now below the level where it started 2019.

After being battered during 2019 by hedge funds betting on its weakening, the euro rose on Friday to an eight-day high of $1.1142. Easing uncertainty about Britain’s exit from the European Union helped sterling gain to a four-day high of 85.17 pence against the euro. The rise was helped by European Commission President Ursula von der Leyen’s saying the EU may need to extend the deadline for talks about a new trade relationship with Britain.

The dollar also dipped against the Japanese yen, falling 0.2% to 109.48 yen. But the dollar was not far off the six-month high of 109.73 yen it reached at the beginning of this month. Finally, the trade-sensitive Aussie dollar rose as high as $0.6958 against its U.S. counterpart, a five-month high.

In commodities, oil prices hit three-month highs, with Brent rising to $68.14 per barrel, extending gains for a fourth session, while WTI gained 22 cents to $61.90 a barrel. Brent has rallied about 25% in 2019, supported by supply cuts in oil-exporting countries. Finally, gold prices eased from a near two-month high hit earlier in the session as investors booked profits amid thin holiday trade. It was still on course for its biggest weekly gain since early August. Spot gold was 0.01% down to $1,510.80 per ounce.

Market Snapshot

  • S&P 500 futures up 0.2% to 3,249.25
  • STOXX Europe 600 up 0.2% to 419.83
  • German 10Y yield fell 1.4 bps to -0.256%
  • Euro up 0.3% to $1.1133
  • Italian 10Y yield unchanged at 1.26%
  • Spanish 10Y yield fell 3.3 bps to 0.403%
  • MXAP up 0.5% to 171.12
  • MXAPJ up 0.7% to 555.27
  • Nikkei down 0.4% to 23,837.72
  • Topix up 0.1% to 1,733.18
  • Hang Seng Index up 1.3% to 28,225.42
  • Shanghai Composite down 0.08% to 3,005.04
  • Sensex up 0.9% to 41,548.02
  • Australia S&P/ASX 200 up 0.4% to 6,821.65
  • Kospi up 0.3% to 2,204.21
  • Brent Futures up 0.5% to $68.23/bbl
  • Gold spot little changed at $1,511.69
  • U.S. Dollar Index down 0.3% to 97.29

Top Overnight News from Bloomberg

  • China’s economic performance improved in December for the first time in eight months, according to a group of earliest-available indicators compiled by Bloomberg.
  • Gold is heading for its biggest weekly advance in more than four months as it powers toward its best year since 2010. The precious metal is up 18% this year as central banks reduced interest rates, and the to-and-fro between the U.S. and China over trade boosted demand for havens.
  • Banks around the world are unveiling the biggest round of job cuts in four years as they slash costs to weather a slowing economy and adapt to digital technology. This year, more than 50 lenders have announced plans to cut a combined 77,780 jobs, the most since 91,448 in 2015.
  • Prime Minister Narendra Modi’s government has set itself on a collision course with those protesting against a new religion-based citizenship law, leading to fears of deepening polarization across the country at a time when the economy is sputtering.
  • A Turkish criminal court convicted at least seven staffers at the Sozcu newspaper on terrorism-related charges, the latest such ruling targeting journalists critical of President Recep Tayyip Erdogan and his policies.

Top Asian News

  • New Sri Lanka Central Bank Chief Holds Rate as Growth Risks Fade
  • China’s Economy Picked Up in December, Early Indicators Show
  • SoftBank Loses Veteran Board Member as Uniqlo Founder Exits
  • Taiwan Dollar Erases Advance as Traders Suspect Intervention
  • Modi Hardens Stance Against Protesters, Who Vow to Hold the Line

Top European News

  • Qiagen Tumbles on Plan to Pursue Stand-Alone Strategy
  • Von Der Leyen Says Brexit Transition May Not Happen by End 2020

In FX, the Bloomberg Dollar Spot Index sank 0.3%. The British pound climbed 0.6%. The euro climbed 0.4% to $1.1147. The Japanese yen strengthened 0.1% to 109.50 per dollar. The onshore yuan was little changed at 6.995 per dollar.

In commodities, West Texas Intermediate crude gained 0.2% to $61.82 a barrel. Gold sank 0.1% to $1,510.13 an ounce.
LME nickel sank 2% to $14,050 per metric ton. LME zinc surged 1.2% to $2,301.50 per metric ton.

US Event Calendar

  • Nothing major scheduled
END

 

3A/ASIAN AFFAIRS

I)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED DOWN 2.32 POINTS OR 0.08%  //Hang Sang CLOSED UP 361.21 POINTS OR 1.20%   /The Nikkei closed DOWN 87.20 POINTS OR 0.36%//Australia’s all ordinaires CLOSED UP .43%

/Chinese yuan (ONSHORE) closed UP  at 6.9958 /Oil UP TO 6188 dollars per barrel for WTI and 68.05 for Brent. Stocks in Europe OPENED MOSTLY GREEN//  ONSHORE YUAN CLOSED UP // LAST AT 6.9958 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9936 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 BELOW LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING STRONGER AGAINST USA DOLLAR/OFFSHORE YUAN TRADING STRONGER AGAINST THE DOLLAR /TRADE DEAL NOW DEAD..TRUMP  RAISED RATES TO 25%

 

 

3 a./NORTH KOREA/ SOUTH KOREA

South Korea

 

b) REPORT ON JAPAN

 

3 C CHINA

China

China has come with a novel attempt to stop the Pig Ebola which is wiping out major portions of herds.  They are using shock therapy to kill the virus and so far they have experienced success.

(zerohedge)

China Turns To Shocking Solution To Curb Pig Ebola

China is the world’s top producer and consumer of pork. So when 50% of its pig herd was wiped out in 2019 from African Swine Fever (ASF), it caused pork prices in the back half of the year to hyperinflate. The immediate response by the government was to consolidate pig farms and release pork from its strategic reserves. Other measures included sourcing pork from South American countries, like Brazil and Argentina, along with reestablishing trade with the US in the last several weeks.

Now the Chinese government is working to limit the spread of ASF through a high-voltage electricity experiment installed in pig barns, reported South China Morning Post (SCMP).

The new device will be installed at a medium-sized hog farm in Chengdu, in one of China’s top pig producing regions.

 

The goal of the test is to see whether an electric field around a barn can limit the transmission of deadly viruses.

Professor Liu Binjiang, a government scientist in northeastern China, is responsible for the “electro culture” program that has already been a huge success for increasing crop yields and reducing plant viruses.

Binjiang and his team are creating a static electric field of 50 kilovolts around a barn that holds thousands of pigs.

He believes the high-voltage discharges will break down chemicals, reduce biological aerosol by 50-90%, kill germs, and stop the spread of viruses that are transmitted through the air.

“The air quality [for the pigs] should improve when the device is powered up,” Binjiang said. “Electricity is one of the many ways to improve living conditions for farm animals. We have a long to-do list.”

 

Binjiang claims that high-voltage electricity was used to create an electric field around a barn in the Hubei province, one of the hardest-hit ASF areas; he claims that none of the pigs died from the virus.

“It had been deployed to enhance animal welfare and prevent airborne diseases such as foot and mouth, but the lack of African swine fever cases was a surprise. It led the team to hypothesize that the electric field had caused a change in the environment that prevented the virus thriving,” SCMP noted.

Electrifying pig farms to create force fields that scrub the air of deadly viruses could be the next big breakthrough China needs to restrict the spread of ASF.

end

China/Huawei

Huawei has benefited greatly from state support during its rise to dominance

(zerohedge)

Huawei Benefited From Billions Of Dollars In State Support During Its Rise To Global Dominance

The Wall Street Journal continued its string of reports on the Chinese government’s shadowy campaign to support mission-critical companies in the private sector on Christmas Day by exposing for the first time to totality of government support for Huawei.

Billions of dollars in credit facilities backed by state-controlled “policy banks”, coupled with pro-business tax breaks, allowed Huawei to cement its position as the world’s leading telecoms giant, according to WSJ.

Huawei’s grants, credit facilities, tax breaks and other forms of financial assistance details for the first time how Huawei had access to as much as $75 billion in state support as it grew from a little-known vendor of phone switches to the world’s largest telecom-equipment company—helping Huawei offer generous financing terms and undercut rivals’ prices by some 30%, analysts and customers say.

Around the world, Huawei is vying to build next-generation 5G telecom networks, much to Washington’s chagrin. In a well-documented campaign, the US has struggled to convince it allies to exclude Huawei equipment from their 5G infrastructure, claiming that Huawei parts would compromise security and allow the Chinese government to tap into civilian and military communications.

But thanks in part to all of this government support, Huawei is able to offer telecoms equipment at world-beating prices. Its biggest competitors, Nokia and Ericsson, can’t even come close.

This government support also undermines Huawei’s claims that it operates independent of Beijing, and that it would under no circumstances cooperate with state intelligence against its customers.

Nevermind that multiple investigations have uncovered evidence that Huawei builds backdoors into its equipment to allow easy access by Chinese intelligence forces.

It’s important to remember that Huawei’s commercial interests align with those of the Chinese government in more ways than one.

“While Huawei has commercial interests, those commercial interests are strongly supported by the state,” said Michael Wessel, a member of a U.S. congressional panel that reviews U.S.-China relations, in an interview. The U.S. has raised concerns that use of Huawei’s equipment could pose a security risk, should Beijing request network data from the company. Huawei says it would never hand such data to the government.

According to WSJ’s investigation, the biggest source of state support for Huawei, about $46 billion, comes from loans, credit lines and other support from state lenders. Huawei saved about $25 billion in taxes between 2008 and 2018 due to state incentives for Chinese tech firms. It also benefited from $2 billion in land discounts, and another $1.6 billion in government grants.

In a statement, Huawei said it benefited from “small and non-material” grants to support its research, but otherwise denied WSJ’s claims that the Chinese state played a critical role in Huawei’s development.

In its research, WSJ used public records in China including company statements and land registration documents. The paper said it “verified” its analysis with subsidy analysts, including a professor at Wichita State University, and Good Jobs First, a Washington DC-based organization that analyzes tax incentives.

Setting the money aside for a moment, it’s important to remember that state support can’t always be quantified. In 1999, China’s central government arranged an unusual rescue from allegations of tax fraud.

The grants Huawei received from the Chinese government between 2008 and 2018 were 17x larger than similar subsidies received by Nokia, the world’s second-largest telecoms equipment maker, while Ericsson received no subsidies during that period.

Back in 2010, the European Commission ruled that Chinese modem exporters, including Huawei, benefited from unfair subsidies, according to a confidential report leaked to WSJ.

But that investigation was cut short after the unnamed “complainant” dropped their claims against China.

In addition to providing cheap loans to Huawei which lower operating costs compared with foreign rivals, Beijing-backed banks also extend cheap credit to Huawei’s customers.

Financial support helped the company undercut rivals. In 2010, the European Commission found that Chinese modem exporters including Huawei had benefited from subsidies, according to a confidential report reviewed by the Journal. The commission cut short its probe after the complainant prompting it reached a “cooperation agreement” with the company. Huawei denied receiving such subsidies.

Besides subsidies, Huawei since 1998 has received an estimated $16 billion in loans, export credits, and other forms of financing from Chinese banks for itself or its customers, the Journal found.

China’s state-controlled banking system underpins cheap loans that lower costs for Huawei and its customers to buy its products on credit. State lending facilities for Huawei were among the largest in history.

Two of China’s biggest banks extended more than $30 billion in credit to Huawei customers over the last 20 years.

Mega-lenders China Development Bank and Export-Import Bank of China in the last two decades made available more than $30 billion in credit lines for Huawei’s customers. World Bank and official data indicate these banks were lending to the company’s clients in developing economies at some 3% in at least Huawei’s first decade abroad, around half of China’s five-year benchmark rate in since 2004.

A Huawei spokesman told WSJ that this customer credit facility was rarely more than 10% subscribed. He added that lenders, who were mostly non-Chinese banks, accounted for only 10% of Huawei’s ongoing financing needs as of the end of last year. Most of Huawei’s working capital comes from its own cash flows.

“If you’re going to buy a house, and if you are able to say you got backing of a half-million-dollar line of credit, that’s going to make you a much stronger bidder,” said Fred Hochberg, former chairman of U.S. Export-Import Bank. “What Huawei did, cleverly, is to make sure that, when they made a bid, it came with financing terms” that surpassed those of competitors.

Of course, China’s whole state capitalist model is based on the idea that government policy and corporate achievement are inseparable. This is made clear in a statement from China’s foreign ministry, which told WSJ that “like many others in China,” Huawei is a private company whose achievements “are inseparable from a good policy environment.”

WSJ found an example of how China’s export-import financing for Huawei customers has influenced foreign governments’ decision to pick Huawei over other telecoms providers.

In summer 2009, Huawei pitched to Pakistan a surveillance system for its capital, Islamabad. Pakistan’s prime minister accepted, but Islamabad lacked funds and its procurement rules required competitive bidding, Pakistan court filings say.

The Chinese offered a solution. China Ex-Im would lend Pakistan $124.7 million for the project and waive most of the 3% annual interest on the 20-year loan. There was a condition, Pakistan Supreme Court filings show: Pakistan could choose only Huawei. Pakistan’s government decided to proceed without competitive bidding.

“On the recommendation of Ex-Im Bank, the prime minister of Pakistan selected Huawei,” then-interior minister Ahsan Iqbal told Pakistan officials.

A Chinese embassy report showed Beijing’s then-ambassador to Islamabad officiating at the project’s inauguration in 2016 alongside Pakistan’s interior minister, standing before an array of glowing security monitors.

“The Chinese government funded it and Huawei built it,” the embassy said.

And there are probably dozens of other examples like this one. Ultimately, Huawei’s expansion explains only part of China’s growing influence across the emerging world. Their two missions are deeply intertwined.

end
China/Europe
Last week, Chinese Ambassador Wu threatened Germany with a “Quid Pro Quo”..if they do not use Huawei then China will not purchase German cars.  Today the threat by Beijing ambassador Ming doubled down and warned the bloc against pursuing policies to curb Chinese companies’ access to Europe claiming it damage Europe’s interests,
(zerohedge)

Chinese Ambassador Threatens EU With “Disastrous” Consequences If It Launches Curbs Against Chinese Companies

Less than two weeks after Beijing issued an overt threat at Germany, when Chinese ambassador to Germany Ken Wu told ex-Foreign Minister Sigmar Gabriel that if Germany excludes Huawei 5G from its communication networks, then China could “declare German cars unsafe” for its domestic market, effectively giving Angela Merkel a quid-pro-quo ultimatum that a ban of Huawei – as demanded by the Trump administration – would lead to retaliation against German auto exports, Beijing’s ambassador to the EU, Zhang Ming, doubled down and warned the bloc against pursuing policies to curb Chinese companies’ access to Europe, saying it would damage its own interests and deter investment.

 

Zhang Ming; photo: BloombergThe ambassador, a veteran diplomat and previously a senior foreign ministry official in Beijing, said plans to clamp down on foreign corporate ownership, trade opportunities and 5G mobile communications technology threatened to trigger a backlash from “suspicious” Chinese entrepreneurs. Ming added that EU countries needed to promote international co-operation and free markets, by which of course he meant free markets that suit China. “Otherwise, it’s disastrous for them,” he warned in an interview with the FT.

“What I hope to see is that the EU will keep to the principles of multilateralism and free trade, as well as the principles of openness, fairness, justice and non-discrimination.”

 

Zhang said the hardening attitude on the EU side had made “many Chinese entrepreneurs working in Europe suspicious” and “also had some kind of impact on Chinese investment in the EU.”

“My colleagues and I are strongly committed to promoting China–EU co-operation, so I’m following the development with interest and concerns,” said the envoy who was a former vice-minister of foreign affairs and took his current post in Brussels in 2017. “Capital is very sensitive, and even cowardly in some cases. In case of any changes or developments, they will feel highly vigilant or even be scared away”

The envoy’s remarks highlight the growing tensions between China and Europe as the EU makes what critics see as “a belated effort to respond to Beijing’s strategic ambitions, nationalistic trade policies and behavior to western enterprises” according to the FT. EU companies and governments have long complained that China greatly restricts access to its own market and heavily favors domestic businesses, while demanding full access to foreign markets.

EU countries are expected in January to publish final recommendations for tougher security checks on 5G equipment companies, where China’s Huawei is a world leader and highly active in Europe. The bloc is also looking at tighter procurement rules and stricter screening of foreign investments, including of businesses that use government backing to gain an advantage when acquiring European rivals.

While Europe has so far treaded cautiously in implementing a blanket ban on Chinese companies as Trump has long demanded, diplomats say 2020 is set to be crucial for the EU-China relationship, with bloc leaders hoping to host President Xi Jinping at a summit as both sides grapple with stresses in their ties and tensions with President Donald Trump’s US administration. In March, the EU for the first time declared Beijing a “systemic rival” in some areas.

Zhang hit back at suggestions in December by Sabine Weyand, the EU’s top trade official, that talks on a new investment treaty with China, due to be concluded in 2020, were moving at a “snail’s pace” and needed more commitment from Beijing.

“Is it a tactic or a trick played by the EU side?” Mr Zhang asked, insisting there was still “hope” for the negotiations if both sides were prepared to “meet each other halfway.” He then added that “talking about the speed of the negotiations, I think it’s better to be a down-to-earth turtle than a cunning rabbit.”

In a delightfully ironic twist, the Chinese diplomat also pointed to potential concerns about a proposed EU carbon border tax, which could hit China’s steel exports to the bloc. “Some are asking whether such a tax is in line with WTO rules, or whether it’s going to lead to protectionism and trade tensions,” he said, clearly ignoring Beijing’s hypocritical condemnation of the US exit from the Paris Treaty when it is China that over the past several years has emerged as the world’s greatest polluter.

Then there is the issue of human rights, which has emerged as another potential flashpoint. Beijing has drawn condemnation from campaign groups and criticism from the EU for interning more than 1 million Muslim Uighurs in so-called concentration re-education camps in western China.

The ambassador denounced the European Parliament’s award in December of its Sakharov Prize for freedom of thought to Ilham Tohti, an advocate for China’s Muslim Uighur community who is serving a life prison sentence for allegedly advocating independence for China’s north-west region of Xinjiang.

Ensuring that China won’t make too many friends with his interview, Zhang accused the EU more widely of “unjust and dishonest rhetoric and behaviour” in its attacks on China’s human rights record. Almost as if he just discovered that hypocrisy is the bedrock of foreign policy.

China’s outreach in Europe has stoked further friction. Specifically, Zhang hit out at moves in EU countries against the Chinese state Confucius Institute, which Beijing insists is a cultural organization rather than the propaganda or espionage tool alleged by critics. Vrije Universiteit Brussel in the Belgian capital said in December that it would end its contract with the Confucius Institute in 2020, as the co-operation was “no longer consistent” with VUB’s policies, objectives and “principles of free research.”

“For some time America and some Western politicians and media are quite suspicious of the Confucius Institutes,” Zhang said. “They are making attacks on these institutes, but they have yet to come up with solid evidence, and so such moves are quite radical and discriminatory.”

He may have a point: after all George Soros’ ‘Open Society’ remains welcome across Europe for spreading the “virtues” of democracy and open society, especially in those nations that urgently need a presidential coup d’etat.

END

4/EUROPEAN AFFAIRS

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

ISIS//Nigeria

Isis followers in Nigeria capture Christians and then sent the video to a journalist. They did this in revenge for the killing of Baghdadi

(zerohedge)

Islamic State Films Gruesome Beheadings In “Message To Christians All Over The World”

The Islamic State has released a video which purportedly shows the brutal execution of 11 blindfolded Christians in Nigeria, the day after Christmas, in revenge for the killing of ISIS leader Abu Bakr al-Baghdadi and IS spokesman Abdul-Hasan al-Muhajir, according to Ahmad Salkida – a journalist who was first sent the video.

This is a message to Christians all over the world,” says a masked man from the Islamic State West African Province (ISWAP), in the 56-second clip released the Amaq news agency, a platform for Islamic State propaganda.

We killed them as revenge for the killing of our leaders, including Abu Bakr al-Baghdadi and [IS spokesman] Abul-Hasan al-Muhajir.”

The footage, filmed in an unidentified outdoor area, shows one captive who is shot dead while the other 10 are pushed to the ground and beheaded, according to the BBC.

Here is a clip of the video which cuts off before the reported executions.

ISWAP, which severed ties with insurgent group Boko Haram and pledged allegiance to Baghdadi in 2016, has intensified its attacks on Christians, security personnel and aid staff in recent months – including the use of checkpoints to stop and search travelers.

On Tuesday, the United Nations condemned the “increasing practice by armed groups to set up checkpoints targeting civilians” in Nigeria’s northeast region amid the increase in targeted violence.

On Sunday, the jihadists killed six people and abducted five others including two aid workers when they intercepted vehicles on a highway on the outskirts of Maiduguri, the Borno state capital. In a similar attack on December 5, ISWAP fighters disguised as Nigerian soldiers stopped and searched vehicles at a checkpoint near Maiduguri.

The group claimed in a statement that six soldiers and eight civilians, including two Red Cross workers, were among those abducted in that attack. Last week the group released a video showing 11 alleged hostages. –MSN

One of the hostages in the video who identified himself as a school teacher said that he and the other hostages appealed to the Nigerian government to help secure their release, according to the report.

END

IRAN/RUSSIA// CHINA

The USA is not going to like this:  Sanctioned Iran is having joint naval drills with Russia and China.  The latter two countries are snubbing their noses at the uSA

(zerohedge)

“We Cannot Be Isolated”: Iran Warns At Start Of Joint Naval Drills With Russia & China

This past year witnessed the United States nearly go to war with Iran in the Persian Gulf, after a summer of ‘tanker wars’ and the September Saudi Aramco attack, but now it appears the new year will witness a superpowers balancing act of sorts play out in the region.

FT reports of an unprecedented development in the gulf region:

Russia, China and Iran launched their first joint naval exercises in the Gulf of Oman on Friday in a direct challenge to US influence in the Middle East. The move reflects growing co-operation between the US’s two main rivals and the Islamic republic, which is under sanctions imposed by Washington.

 

Chinese People’s Liberation Army Navy Surface Force Type 052D destroyer Xining during joint Iran-Russia-China naval drills in the Indian Ocean and the Gulf of Oman on December 27, 2019. Via PressTV/AFP

Crucially, the start of the four day exercises come as the United States has struggled to attract key European allies to join its ‘maritime naval mission’ in the gulf to thwart Iran. Instead, Europe has initiated its own mission which leaders have emphasized has nothing to do with the US project.

Predictably, the US mission counts as key regional allies Bahrain, Saudi Arabia and the United Arab Emirates. But Iran has long stated only its forces and its partners can ‘secure’ vital oil waterways like the Strait of Hormuz.

The unprecedented Iran-China-Russia drills also come after in the past months the US has sanctioned major Chinese shipping companies over alleged sanctions-busting activities related to imports of Iranian oil.

But sensing that its fortunes and past year of extreme isolation (and with little substantial help from Europe) have changed, Iranian military officials are now boasting in the face of Washington threats.

Javad Zarif

@JZarif

Iran has long stated its readiness to work w/our neighbors to secure Persian Gulf. -Hormuz Peace Endeavour-is on table right now

Our joint military drills in Oman Sea/Indian Ocean w/ our Russian & Chinese partners make clear our broader commitment to secure vital waterways.

“The most important achievement of these drills . . . is this message that the Islamic republic of Iran cannot be isolated,” vice-admiral Gholamreza Tahani, a deputy naval commander, was quoted as saying.

“These exercises show that relations between Iran, Russia and China have reached a new high level while this trend will continue in the coming years,” the Iranian naval commander added.

The US meanwhile, warned in a statement that Iran should “think twice” about following through with the joint exercises, a message already clearly ignored.

 

File image via CNN/Getty

In a statement to FT, the State Department said Friday’s military exercises “should concern all nations with an interest in safeguarding freedom of navigation in the region.”

Unmoved, Iranian Foreign Minister Javad Zarif underscored, “Our joint military drills in Oman Sea/Indian Ocean with our Russian & Chinese partners make clear our broader commitment to secure vital waterways,” in a statement posted to Twitter.

Iran Military@Iran_Military


Sahand frigate, Alvand frigate,Tonb landing craft, Konarak tender, Neyzeh attack craft, Martyr Nazeri vessel, a Tondar-class attack craft, & a tug boat.
Yaroslav Mudry frigate,Viktor Konetsky tug boat, & Yelyna tanker.
Xining destroyer

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

And Second Rear Admiral Gholamreza Tahani described that among the drills’ strategic objectives are “improving the security of international maritime trade, countering maritime piracy and terrorism, exchanging information regarding rescue operations and operational and tactical experience.”

Specifically the joint exercises have been dubbed as as the “Marine Security Belt” and will be conducted across an area of 17,000 square kilometers and is set to demonstrate “various tactical exercises”.

END

6.Global Issues

BANKS/AROUND THE WORLD

How could this be possible:  banks celebrating record high stock prices with the most layoffs since 2015

(zerohedge)

Banks Celebrate Record High Stocks With Most Layoffs Since 2015

A few days ago, Morgan Stanley laid out why 2019 was an “unusual”, bizarre year for equity markets, which hit all time highs around the globe even as bullish strategies underperformed, crippling countless hedge funds who failed to get the mix of assets just right and suffered another round of gut-wrenching redemptions which culminated in the longest streak of hedge fund outflows since the financial crisis.

But for the people who brought you this record performance in stocks – namely the world’s traders, bankers, and finance professionals – there is another reason why 2019 was not only perplexing but also painful year: more of them got let go than any other year since 2015!

According to Bloomberg calculationsbanks around the world – the institutions that are supposed to benefit the most from rising markets – have unveiled the biggest round of job cuts in four years “as they slash costs to weather a slowing economy and adapt to digital technology.” Wait, did Bloomberg just say “slowing economy?” But… but… S&P at all time highs? Oh wait, we almost forgot: all of the S&P’s upside in 2019 was due to multiple expansion as earnings declined YoY

But we digress: in 2019, more than 50 banks have announced plans to cut a combined 77,780 jobs, the most since 91,448 in 2015…

… with banks in Europe, which have been crushed by the ECB’s catastrophic NIRP policy and face the added burden of negative interest rates for years to come, accounting for almost 82% of the total.

Not surprisingly, there is one bank whose job cuts dwarf everyone else: Germany’s biggest lender – which after nearly failing in 2016 has been disintegrating year after year in the world’s most grotesque restructuring process – tops the list of planned job cuts.

According to Bloomberg, Deutsche Bank “is planning to get rid of 18,000 employees through 2022 as it exits from a big part of its investment banking business.” And by that, Bloomberg means that with Deutsche Bank’s countless market manipulation tricks having been exposed, it no longer needs quite as many deadweight bankers who are unable to rig this or that assets, and are now just a cost-center in a time of pervasive algo trading.

Deutsche Bank’s aggravated disintegration and surging layoffs mean that the 2019 cuts will bring the total for the last six years to more than 425,000, a very distinct middle-finger to the industry that is supposed to benefit the most from the fake all time highs in global stocks. In fact, as Bloomberg correctly points out, the actual amount is probably higher because many banks eliminate staff without disclosing their plans.

To be sure, US banks were also not immune with Morgan Stanley the latest firm to make a year-end efficiency push, cutting about 1,500 jobs, or 2% of the bank’s workforce, as we reported at the start of the month.

But nothing compares to the shitshow in Europe:

This year’s figures also underscore the weakness of European banks as the region’s export-oriented economy confronts international trade disputes while negative interest rates eat further into lending revenue. Unlike in the U.S., where government programs and rising rates helped lenders rebound quickly after the financial crisis, banks in Europe are still struggling to regain their footing. Many are firing staff and selling businesses to shore up profitability.

The irony: even as stocks continue to break records with every passing, banks will continue to announce further layoffs next year. Swiss wealth manager Julius Baer Group is considering cuts to reduce costs because of rising competition and tighter margins, Bloomberg sources reported, while Spain’s Banco Bilbao Vizcaya Argentaria SA plans to cut jobs in its client solutions business and may extend that to its wider business.

As for the US banking sector, it suffered a near-death experience in Sept when the funding rates exploded as the Fed briefly lost control over funding markets. However, some quick thinking by Jamie Dimon, whose JPMorgan had pulled nearly $200 billion in liquidity from repo and money markets earlier in 2019, which forced the Fed to launch QE4, allowed US banks to not only emerge unscathed from the repo crisis but to enjoy record high stock prices which they can now buyback after issuing tens of billions in debt to desperate Japanese pensioners and retirees. After all, there is a reason why Jamie Dimon is “richer than you.

7. OIL ISSUES

Ukraine/Russia/USA

My goodness this escalated fast:  Gazprom pays the Ukraine 2.9 billion dollars to settle its dispute and how agrees to purchase gas to supply Europe.  And everybody thought that the UKraine was the USA’s friend. I guess nobody is paying any attention to the USA sanctions on anybody connected to the Nord stream 2 project

(zerohedge)

US Sanctions Backfire: Russia’s Gazprom & Ukraine Make Landmark Deal

Sanctions-happy Washington continues to aid in a slow rapprochement between Russia and Ukraine.Ironically enough, at moment the US is demanding Nord Stream 2 contractors to lay down their tools and wind-down operations “immediately” or face further sanctions, there’s been an unprecedented breakthrough in the standoff between Russian state energy giant Gazprom and Kiev:

Naftogaz of Ukraine

@NaftogazUkraine

Naftogaz confirms receipt of $2.9 bn outstanding compensation from Gazprom

Of course the other supreme irony is that Washington has claimed all along to be acting in Ukraine and Europe’s best interest, but it appears no one is getting the message. 

As we detailed earlier this week, Allseas, the Swiss company that is Nord Stream’s main contractor, confirmed its workers as well as partner contractors have laid down their tools; however, others have pressed forward as the project is very near completion, also as both Gazprom and the Nord Stream 2 project spokesman have promised to finish. Gazprom says its retrofitting its own ships to take over the bulk of pipeline laying that Allseas was overseeing.

 

Naftogaz headquarters in Kiev.

The WSJ reported previously that “Jens D. Mueller, a spokesman for Nord Stream 2’s parent company, said that the pipeline would be finished despite Allseas pulling out its fleet.” Additionally, Russia’s Energy Minister Alexander Novak vowed the 760-mile will be launched before the end of 2020 even after President Trump signed NS2 sanctions into effect last Friday, which target the companies laying the pipeline.

Gazprom and five European companies are spearheading the project — among them France’s ENGIE, Austria’s OMV, the UK-Dutch Royal Dutch Shell, and Germany’s Uniper and Wintershall  which includes dozens more smaller contractors.

But now there’s less incentive for European companies and Gazprom itself to heed Washington’s warnings and stop work. As Reuters reports of Friday’s major breakthrough:

 

Gazprom said on Friday it has paid Ukraine $2.9 billion to settle a legal row, part of a wider gas package deal reached last week.

Last week, Russia and Ukraine announced the terms of a new gas transit deal, under which Moscow will supply Europe for at least another five years via its former Soviet neighbour and pay a $2.9 billion settlement to Kiev to end a legal dispute.

And Kiev in exchange is set to drop a separate legal claim.

So again, as Russia and Germany continue to ignore US pressures and demands, after even some in the US administration have admitted it’s “too little too late” to block the NS2 project at this point, the unintended end result is that against all odds Russia and Ukraine could come out of this BFFs.

END

8 EMERGING MARKET ISSUES

 

 

 

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

Euro/USA 1.1152 UP .0051 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 ITALY

 

 

USA/JAPAN YEN 109.51 DOWN 0.026 (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 1.3088   UP   0.0088  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO OCT 31/2019//

USA/CAN 1.3091 DOWN .0019 CANADA WORRIED ABOUT TRADE WITH THE USA WITH TRUMP ELECTION/ITALIAN EXIT AND GREXIT FROM EU/(TRUMP INITIATES LUMBER TARIFFS ON CANADA/CANADA HAS A HUGE HOUSEHOLD DEBT/GDP PROBLEM)

Early THIS  FRIDAY morning in Europe, the Euro ROSE BY 51 basis points, trading now ABOVE the important 1.08 level RISING to 1.1152 Last night Shanghai COMPOSITE CLOSED DOWN 2.32 POINTS OR 0.08% 

 

//Hang Sang CLOSED UP 361.21 POINTS OR 1.30%

/AUSTRALIA CLOSED UP 0,43%// EUROPEAN BOURSES MOSTLY GREEN EXCEPT ITALY

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN EXCEPT ITALY 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 361.21 POINTS OR 1.30%

 

 

/SHANGHAI CLOSED DOWN 2.32 POINTS OR 0.08%

 

Australia BOURSE CLOSED UP. 43% 

 

 

Nikkei (Japan) CLOSED DOWN 87.20  POINTS OR 0.36%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1510.15

silver:$17.82-

Early FRIDAY morning USA 10 year bond yield: 1.89% !!! DOWN 1 IN POINTS from THURSDAY’S night in basis points and it is trading WELL BELOW resistance at 2.27-2.32%.

 

The 30 yr bond yield 2.32 DOWN 1  IN BASIS POINTS from THURSDAY night.

USA dollar index early FRIDAY morning: 97.15 DOWN 38 CENT(S) from  THURSDAY’s close.

This ends early morning numbers FRIDAY MORNING

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx6

And now your closing FRIDAY NUMBERS \1: 00 PM

Portuguese 10 year bond yield: 0.39% DOWN 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: 0.41%//DOWN 3 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,37 DOWN 6 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 96 points higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.26% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.63% AND NOW ABOVE THE  THE 3.00% LEVEL WHICH WILL IMPLODE THE ENTIRE ITALIAN BANKING SYSTEM. AT 4% SPREAD THERE WILL BE A HUGE BANK RUN…

 

END

IMPORTANT CURRENCY CLOSES FOR FRIDAY

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

Euro/USA 1.1174  UP   .0073 or 73 basis points

USA/Japan: 109.48 DOWN .0073 OR YEN UP 7  basis points/

Great Britain/USA 1.3089 UP .0084 POUND UP 84  BASIS POINTS)

Canadian dollar UP 36 basis points to 1.3075

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 6.9957    ON SHORE  (UP)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.9948  (YUAN UP)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.9586 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.01%

 

Your closing 10 yr US bond yield DOWN 3 IN basis points from THURSDAY at 1.87 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.31 DOWN 4 in basis points on the day

Your closing USA dollar index, 97.03 DOWN 50  CENT(S) ON THE DAY/1.00 PM/

 

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

London: CLOSED UP 8.31  0.20%

German Dax :  CLOSED UP 36.13 POINTS OR .27%

 

Paris Cac CLOSED UP 7.84 POINTS 0.13%

Spain IBEX CLOSED UP 33.70 POINTS or 0.40%

Italian MIB: CLOSED DOWN 140.82 POINTS OR 0.59%

 

 

 

 

 

WTI Oil price; 61.76 12:00  PM  EST

Brent Oil: 68.10 12:00 EST

USA /RUSSIAN /   RUBLE RISES:    62.05  THE CROSS LOER BY 0.20 RUBLES/DOLLAR (RUBLE HIGHER BY 20 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.26 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 :  61.68//

 

 

BRENT :  68.13

USA 10 YR BOND YIELD: … 1.88  DOWN 3 BASIS PTS…

 

 

 

USA 30 YR BOND YIELD: 2.32..DOWN 2 BASIS PTS..

 

 

 

 

 

EURO/USA 1.1173 ( UP 471  BASIS POINTS)

USA/JAPANESE YEN:109.44 DOWN .086 (YEN UP 9 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.01 DOWN 52 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.3075 UP 75  POINTS

 

the Turkish lira close: 5.9560

 

 

the Russian rouble 62.06   UP 0.18 Roubles against the uSA dollar.( UP 18 BASIS POINTS)

Canadian dollar:  1.3082 UP 29 BASIS pts

USA/CHINESE YUAN (CNY) :  6.9957  (ONSHORE)/

 

 

USA/CHINESE YUAN(CNH): 6.9920 (OFFSHORE)

 

German 10 yr bond yield at 5 pm: ,-0.26%

 

The Dow closed UP 23.87 POINTS OR 0.08%

 

NASDAQ closed DOWN 15.78 POINTS OR 0.17%

 


VOLATILITY INDEX:  13.43 CLOSED UP .78

LIBOR 3 MONTH DURATION: 1.960%//

 

 

USA trading today in Graph Form

Bonds, Stocks, & Silver Surge Over Xmas Week But Dollar Dives To 5-Month Lows

“They’re keeping the rates down so that everything else doesn’t go down… The only thing that is strong is the artificial stock market.” – Trump, 9/5/16

It’s been a year of buying everything:

  • S&P’s best year since 1997
  • Gold’s best year since 2010
  • Bond’s best year since 2014

And all it took was $5 trillion in global liquidity!!!

Source: Bloomberg

Remember, correlation is not causation… especially when your salary depends on it…because this rally in stocks is all about the fun-durr-mentals…The S&P 500 is up almost 30% and earnings expectations are down almost 5% on the year…

Source: Bloomberg

Chinese stocks were unchanged on the week…

Source: Bloomberg

US majors started weak today, rebounded, then ended weak… Nasdaq ended its winning streak…

 

US Small Caps lagged on the week as Nasdaq soared (the S&P is on the verge of its best year since 1997)…

 

 

Nasdaq bounced perfectly off 9,000 intraday…

The Dow bounced off unchanged twice…

 

AAPL had a more volatile day than normal… was the guy in charge of buybacks taking some time off?

 

 

Still doesn’t really matter eh?

Source: Bloomberg

We also note that AAPL rejected the Fib 161.8% extension of the late 2018 collapse…

Source: Bloomberg

Something has changed in the last couple of days with AAPL…hedging the huge gains into year-end?

Source: Bloomberg

Even TSLA was red today, but has a long way to catch down to un-exuberant bonds…

Source: Bloomberg

VIX has notably decoupled from stocks this week…

Source: Bloomberg

The open was yet another short squeeze but it didn’t last and stocks dumped. But were rescued into the European close by another squeeze…

Source: Bloomberg

Treasury yields ended the week 3-5bps lower

Source: Bloomberg

10Y yields broke back below 1.90%…

Source: Bloomberg

The Dollar plunged today (biggest single-day drop since Sept 4th)…

Source: Bloomberg

This is the 3rd weekly drop in the last 4 weeks, to its weakest close since July…

Source: Bloomberg

As the dollar has slipped, Yuan has drifted very quietly sideways, apparently pegged around 7.00…

Source: Bloomberg

The pound inched higher this week after last week’s bloodbath, ending back at pre-election-spike levels…

Source: Bloomberg

Bitcoin was unchanged on the week with Bitcoin Cash surging today to lead on the week; Ripple and Ethereum lagged…

Source: Bloomberg

Bitcoin has been relatively stable for two week weeks (despite the pump and dump)…

 

Source: Bloomberg

Commodities were all higher as the dollar tumbled, but PMs trumped crude and copper…

Source: Bloomberg

Silver topped $18 on the week (though fell back below today)…

And gold topped $1500 and held it…

Silver has outperformed gold for the 3rd week in a row…

Source: Bloomberg

And WTI Crude has accelerated beyond its uptrend channel…

Copper has now risen for 6 straight weeks – the longest streak since Sept 2017…

Source: Bloomberg

Finally, investor greed has reached peak-extreme…

And hedge fund exposure to the US equity market is exploding…

This won’t end well

END

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

MARKET TRADING//USA

a)Market trading/LATE MORNING/USA

“Everything’s Down” – Stocks, Dollar, & Bond Yields Tumble

While Apple shares continued their charge higher overnight and into the cash open, they began to slide around 0945ET and the rest of the market followed…

 

And now all the major US equity indices have given back their overnight gains (The Dow is bouncing off unch for now)…

 

The Dollar is dumping…

Source: Bloomberg

And bond yields are tumbling too…

Source: Bloomberg

We’re gonna need more notQE!

 

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

iii) Important USA Economic Stories

Very unusual seismic activity all along the West coast from Vancouver Island down to California. Many are quite concerned

(Michael Snyder)

Very Unusual Seismic Activity On West Coast Has Experts Extremely Concerned

Authored by Michael Snyder via TheMostImportantNews.com,

The west coast never stops shaking, but lately the shaking has gone to an entirely new level, and this has many people deeply concerned about what may be coming. Last summer, a series of alarming foreshocks immediately preceded the two historic quakes that shook the Ridgecrest area in southern California. But those quakes were nothing compared to “the Big One” that scientists assure us is way overdue. Someday an earthquake that is hundreds of times stronger will absolutely devastate the California coastline, and it may be arriving a lot sooner than many people think. Farther north, the Cascadia subduction zone is a ticking time bomb that could literally unleash an unprecedented disaster at any moment. What I am talking about is an event that will completely wipe out entire cities and that the region will never recover from. As I have detailed repeatedly, authorities have warned us that “everything west of Interstate 5 will be toast” when an absolutely massive seismic event along the Cascadia subduction zone sends a gigantic tsunami sweeping inland.

And without a doubt, that day is coming.

Because of the extreme damage that a major west coast seismic event would do to our economy and to our Internet infrastructure, all of our lives will dramatically change the moment it happens. So it is understandable why so many people are alarmed by the tremendous shaking that we have witnessed over the past few days. As Americans all over the country were celebrating Christmas, the state of California was shaken by 9 significant earthquakes, and farther north the city of Vancouver was rattled by a magnitude 6.3 quake

A series of earthquakes on Christmas Eve and before dawn Christmas morning hit around California, and a much bigger 6.3 quake shook off Vancouver.

At least nine earthquakes in 24 hours reaching up to 3.2 magnitude shook California from the Los Angeles area north to Chico, the U.S. Geological Survey reports.

The other quakes in the swarm ranged from 2.5 to 3.0 magnitude and stretched the length of the state, according to the USGS.

The large earthquake that shook Vancouver was preceded by five other large earthquakes that hit the region on Monday

There were no reports of damage or injuries after five earthquakes struck within seven hours off the northwest end of Vancouver Island on Monday.

The tremors began as minor quakes, but grew stronger as the morning turned to afternoon.

According to the CBC, those five large earthquakes ranged in size from magnitude 4.8 to magnitude 6.0…

  • 5.1 (8:44 a.m. PT).
  • 5.6 (11:13 a.m.).
  • 5.8 (11:49 a.m.).
  • 6.0 (12:56 p.m.).
  • 4.8 (3:38 p.m.).

Hopefully this earthquake swarm off the coast of Vancouver will turn out to be nothing.

But scientists tell us that an enormous rupture of the Cascadia subduction zone has the potential to produce a giant tsunami hundreds of feet tall, and the death and destruction such a tsunami would cause in Vancouver, Seattle, Tacoma, Portland and other coastal communities in the Northwest would be absolutely off the charts.

Meanwhile, we have also witnessed more than 30 significant earthquakes over last 30 days in the vicinity of Mt. Rainier, and anyone that is familiar with my work knows how concerned I am about the potential for a major eruption of that volcano.

Because there is always at least a little bit of shaking going on along the west coast, many residents have been lulled into a false sense of security. Yes, a major disaster has not happened in a long time, and as a result many believe that there is nothing to be concerned about. But someday a major event will strike very suddenly, and the devastation will be unimaginable. Just consider what Steve Quayle recently told Greg Hunter

“The amount of damage, and I am going to choose my words carefully, is going to be precedent setting. It’s going to be the combination of volcanos going off that are inland from the subduction zone where the plates meet, coupled with tsunamis. . . . When this happens, you will lose eight million to twenty million people. When it happens, you will lose all productivity in the electronic field, obviously Silicon Valley, and all food production in all of California, Oregon and Washington. When it happens, you will have a State of Emergency unlike any other. How about the refugees? There will be 3.5 million refugees to take care of. When this happens, what happens to the underground aquifers, and where does everybody go for fresh water? There will be years of drought, years of famine and years of water, water where did it all go? It is a very dire situation painted by computer models. This is not a sensational thing. It is a reality based, scientific study with the application of what happens.”

Hopefully such an event will be delayed for as long as possible.

But each day it gets a little closer.

Before I get back to California, there is one more little tidbit from the Northwest that I wanted to share with you. On Friday, the city of Seattle experienced “its darkest day in recorded history”

Seattle, the city known for its rainy weather and overcast, saw its darkest day in recorded history Friday due to several factors, including shorter days and dense cloud coverage.

Pyranometers are devices installed in buildings on campus at the University of Washington that help scientists gauge just how dark the days actually get in the city, the Seattle Times reported. Scientists there monitor how much solar radiation reaches the ground during a 24-hour span.

Could that be some sort of a harbinger?

I don’t know, but certainly a lot of really weird things have been happening in the U.S. lately.

 

Overall, there have been more than 1,200 earthquakes in the United States over the past week, and the majority of those quakes have happened in the state of California.

Prior to the earthquake swarm that we witnessed on Christmas Eve and Christmas Day, a series of moderate quakes rattled the Ridgecrest area on Thursday and Friday

Five months after the biggest earthquake in two decades, a swarm of smaller quakes rattled a secretive Navy base in the Mojave Desert Thursday afternoon and before dawn on Friday, according to the US Geological Survey.

Five quakes magnitudes over 2.5 struck Naval Air Weapons Station China Lake between 3 p.m. Thursday and 3.30 a.m. Friday in Ridgecrest, CA, according to the Fresno Bee.

That is the exact same area where two large earthquakes made headlines all over the globe last July.

Could it be possible that another major event is on the way?

As I repeatedly stress, we live at a time when our planet is becoming increasingly unstable.

Maybe it won’t happen this week, and maybe it won’t happen this month, but scientists assure us that major seismic disasters are coming to the west coast.

It is simply a matter of time, and time may be running out a whole lot more rapidly than most people would dare to imagine.

END
More trouble for Boeing as lawyer and Boeing executive Judge Luttig has been fired for his short involvement in the 737 max mess.
(zerohedge)

iv) Swamp commentaries)

Bill Barr as Attorney General is after Ghislaine Maxwell for her ties to Epstein

(zerohedge)

FBI Confirms Maxwell, Others Are Under Investigation For Epstein Ties

Sources inside the FBI have reportedly confirmed that the bureau is investigating British socialite Ghislaine Maxwell and several other unnamed persons suspected of helping multimillionaire pedophile Jeffrey Epstein recruit and exploit underage girls.

Maxwell, who reportedly dated Epstein in the early 1990s before settling in to a close friendship with the millionaire, has been MIA since Epstein’s July arrest. Soon after, Epstein killed himself while awaiting trial in Manhattan’s Metropolitan Correctional Center.

Though this is the first time the FBI has confirmed that it’s actively investigating Maxwell, AG Bill Barr’s insistence that the case would focus on those who enabled or abetted Epstein led many to suspect that Maxwell would be the next logical target.

That’s because she has been accused in court filings of organizing a sex-trafficking ring that helped bring beautiful young girls to Epstein’s expansive Manhattan townhouse.

Back in 2003, Epstein told a reporter with Vanity Fair that Maxwell was his “best friend.”

Maxwell is the daughter of late British media magnate Robert Maxwell, who founded a publishing house and once owned a suit of tabloids, including the Daily Mirror.

It emerged after Robert Maxwell’s mysterious death in 1991 that he had looted hundreds of millions of dollars from employee pension funds to prop up his crumbling business empire.

We have reported on several rumors regarding Maxwell’s whereabouts, including one claiming that she was living in a tech CEO friend’s multimillion-dollar oceanfront mansion.

But the CEO denied the reports and it’s unclear now whether Maxwell was ever there. But Maxwell’s friendship helped Epstein expand his circle of famous and powerful friends. She was his connection to Prince Andrew, who was snubbed by his own mother on Christmas thanks to the shame his involvement with Epstein has brought to the British royal family. Prince Andrew stepped down from public duties in November, and will likely live out the rest of his life in the shadows.

She also helped forge Epstein’s connection with the Clinton’s, and was in attendance at Chelsea Clinton’s wedding.

Epstein and Maxwell at a party

Reuters’ sources within the bureau declined to name any other suspects who are being “looked at” in the Epstein case other than Maxwell. However, they did stipulate that they have no plans to interview Prince Andrew at this time – though that could change.

Virginia Giuffre (previously named Virginia Roberts), one of Epstein’s alleged victims, claimed in a civil lawsuit that Maxwell “recruited” her into Epstein’s orbit, where she was forced to have sex with Epstein and his powerful friends, including Prince Andrew.

It’s widely suspected that Epstein accumulated his wealth and powerful circle of friends thanks to his skill at blackmailing the rich and powerful after they had slept with a member of Epstein’s coterie of underage girls.

Though if Epstein really did have a trove of kompromat on his friends and associates, where is it? And how was it hidden from public view for all of this time?

end

This ought to be fun.  Judge Lamberth orders Hillary to testify under oath on matters concerning her illegal server and destruction of 33,000 emails.

(courtesy SteadfastClash.com)

COURT ORDERS HILLARY TO TESTIFY UNDER OATH TO JUDICIAL WATCH CONCERNING HER ILLEGAL SERVER


A federal judge has ordered additional discovery for Judicial Watch on the Hillary Clinton email scandal. There is one catch. Hillary gets 30 days to offer up reasons why she should not comply.

But after that, she will have to sit down with Judicial Watch and answer their questions under oath. Judicial Watch has four more months to work with. In addition to Hillary’s testimony, the judge allowed  JW even more discovery-based on what they have gathered so far.

JW could succeed where the FBI failed, but of course, the FBI wanted to fail, so that makes it easier.

From The Gateway Pundit

Judicial Watch was in court Thursday fighting to force Hillary Clinton to answer questions under oath about her private server.

Judge Royce Lamberth, a Reagan appointee on Thursday granted Judicial Watch additional discovery and Hillary Clinton has 30 days to oppose to their request to question her under oath.

Judicial Watch has four more months to conduct the discovery that Judge Lamberth just granted them, according to JW attorney Ramona Cotca.

TOM FITTON: Court gives Judicial Watch additional discovery and witnesses on Clinton emails — wants Judicial Watch to “shake the tree” on newly uncovered potential Clinton email trove. Gives Mrs. Clinton 30 days to oppose our request to question her under oath.

 

Tom Fitton

@TomFitton

BREAKING: Court gives @JudicialWatch additional discovery and witnesses on Clinton emails — wants Judicial Watch to “shake the tree” on newly uncovered potential Clinton email trove. Gives Mrs. Clinton 30 days to oppose our request to question her under oath. https://twitter.com/TomFitton/status/1164596680379052035 

Tom Fitton

@TomFitton

HAPPENING NOW: Hillary Clinton back in federal court — against @JudicialWatch–fighting our request to question her on emails AND Benghazi!

Our legal team in court at 2 pm vs both Hillary Clinton’s lawyers AND, outrageously, DOJ lawyers defending her!https://judicialwatch.org/press-releases/federal-court-hearing-on-clinton-emails-judicial-watch-asking-for-deposition-of-hillary-clinton/ 

View image on Twitter

As previously reported in December, Judge Royce Lamberth ordered senior Obama administration officials, including lawyers and aides from the Clinton State Department to be deposed and or answer written questions under oath.

The court ordered discovery into three specific areas: whether Secretary Clinton’s email use of a private email server was intended to stymie FOIA; whether the State Department’s intent to settle this case in late 2014 and early 2015 amounted to bad faith; and whether the State Department has adequately searched for records responsive to Judicial Watch’s request.

Judicial Watch deposed nearly a dozen witnesses and will seek addition witnesses and documents from the court, including the deposition of Hillary Clinton and Cheryl Mills, her chief of staff at State and personal lawyer who directed the destruction of 33,000 State Department Clinton emails. Lawyers for Clinton and Mills are expected at the hearing Thursday.

 

The views and opinions expressed here are solely those of the author of the article and not necessarily shared or endorsed by SteadfastClash.com

We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse.

end
Shear hypocrisy…check out what Chuck Schumer said in 1999 with respect to his prejudging Clinton’s innocence
(zerohedge)

CNN (Shockingly) Calls Out Chuck Schumer Over 1999 Impeachment Hypocrisy

CNN blasted Sen. Chuck Schumer (D-NY) on Friday over contradictory stances regarding the role of Senators during an impeachment.

In a recent floor speech, Schumer blasted Senate Majority Leader Mitch McConnell (R-KY) for describing himself as “not an impartial juror” when it comes to Trump’s upcoming impeachment trial.

“Let the American people hear it loud and clear, the Republican leader said, proudly, ‘I’m not an impartial juror. I’m not impartial about this at all.’ That is an astonishing admission of partisanship,” said Schumer.

Yet, as CNN‘s Andrew Kaczynski and Em Steck note, Schumer said during Bill Clinton’s 1998 – 1999 impeachment saga that the Senate was “not like a jury box,” and that senators, who are not impartial, had previously formed their opinions heading into the trial.

andrew kaczynski🤔

@KFILE

Schumer and McConnell debated last week over McConnell saying ‘I’m not an impartial juror,” with Schumer saying he was “utterly amazed” by McConnell describing himself as not impartial.

andrew kaczynski🤔

@KFILE

Schumer had attacked his Senate opponent Al D’Mato for not taking a position on impeachment during their 1998 debate. D’Mato said he would not take a position until “the proof is presented” at the Senate trial –  calling it “inappropriate.” https://www.cnn.com/2019/12/27/politics/chuck-schumer-impeachment-1999-kfile/index.html 

Embedded video

70 people are talking about this

In fact, as “KFile” notes, Schumer was elected to the Senate in 1998 on the promise that a vote for him would be a vote not to impeach Clinton.

andrew kaczynski🤔

@KFILE

We have a new story looking at past Chuck Schumer’s comments on impeachment. Including repeatedly arguing the Senate was not a jury in 1999 and him campaigning that he would not support impeachment or convicting Clinton in 1998.https://www.cnn.com/2019/12/27/politics/chuck-schumer-impeachment-1999-kfile/index.html https://twitter.com/ChadPergram/status/1207753063869628416 

Embedded video

Chad Pergram

@ChadPergram

GOP LA Sen Cassidy on Senate trial Does anybody think that Schumer really hasn’t made up his mind? He stands up there and says we have to be impartial. And in reality the guys trying to manipulate this for political advantage. I mean at least McConnell’s honest.

254 people are talking about this

Speaking on CNN’s “Larry King Live” in January 1999, Schumer said the trial in the Senate was not like a jury box.

We have a pre-opinion,” Schumer said, citing himself and two newly-elected Republican senators who had voted on impeachment in 1998 as members of the House of Representatives who said they would vote in the Senate. “This is not a criminal trial, but this is something that the Founding Fathers decided to put in a body that was susceptible to the whims of politics.”

So therefore, anybody taking an oath tomorrow can have a pre-opinion; it’s not a jury box,” King asked Schumer.

“Many do,” Schumer responded. “And then they change. In fact, it’s also not like a jury box in the sense that people will call us and lobby us. You don’t have jurors called and lobbied and things like that. I mean, it’s quite different than a jury. And we’re also the judge.”

A day later, the Republican National Committee attacked Schumer in a press release for previous comments in the House saying there was no basis for impeachment. –CNN

Then-RNC chairman Jim Nicholson said of Schumer “No self-respecting jury would allow somebody who’s already formed an opinion on the guilt or innocence of the accused,” adding “but Chuck Schumer has loudly proclaimed that he’s pre-judged the case. He’s already announced that he’s decided the President shouldn’t be impeached, much less removed from office.”

Schumer responded days later, telling NBC‘s “Meet the Press”: “The Founding Fathers — whose wisdom just knocks my socks off every day, it really does — set this process up to be in the Senate, not at the Supreme Court, not in some judicial body.”

“Every day, for instance, hundreds of people call us up and lobby us on one side and the other. You can’t do that with a juror,” he added. “The standard is different. It’s supposed to be a little bit judicial and a little bit legislative-political. That’s how it’s been.

Meanwhile, Schumer said in a 1998 Op-Ed that he would be voting to acquit Clinton, and that he’d made up his mind that September.

“My decision will not come as a surprise,” Schumer wrote. “I will be voting to acquit the president on both counts. I had to make my decision in September as a member of the Judiciary Committee in the House, and while I was in the middle of the campaign.”

Responding to CNN‘s recent report (yet failing to explain the ‘impartial juror’ hypocrisy), Schumer’s office said that his statements came after the conclusion of the Starr investigation, “which included testimony from key witnesses including President Clinton, had concluded and been made public for months and as Sen. Schumer was in the anomalous position of having already voted on impeachment in both the House Judiciary Committee and on the House floor.”

“As is reflected in these quotes, Schumer believed then and still believes now that all of the facts must be allowed to come out and then a decision can be made — in stark contrast to the Republicans today in both the House and Senate who have worked to prevent all the facts and evidence from coming out.”

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

Don’t expect Fed Chairman Jerome Powell to play nice with Trump

A good relationship began much earlier when Greenspan attended Clinton’s first State of the Union address in 1993 and was seated between First Lady Hillary Clinton and Tipper Gore, wife of Vice President Al Gore… The fact is, Greenspan shouldn’t have been seen with any politician on that day. His role as Fed chairman should have been seen as apolitical…

    Then came Clinton’s impeachment in December 1998… Greenspan… policy of sharply reducing interest rates at precisely that time of political turmoil helped Clinton enormously… it is pretty clear that Powell isn’t going to be Trump’s patsy like Greenspan was Clinton’s

    When the impeachment of Trump is over, the next act in this political drama will take place… The second act this time will be when Attorney General Bill Barr and US Attorney John Durham take action against the people — mostly Democrats and intelligence officials from the Obama administration — who were trying to, first, destroy Trump’s chances of winning the presidency and, second, his chance of successfully governing after he won…

https://nypost.com/2019/12/25/dont-expect-fed-chairman-jerome-powell-to-play-nice-with-trump/

IG Report Reveals Steele Funneled Claims through John McCain After FBI Dropped Him

Late Senator John McCain provided disgraced former FBI chief James Comey with five separate reports from Christopher Steele that the FBI didn’t previously possess related to unsubstantiated allegations of collusion between Russia and President Trump’s 2016 campaign, the Justice Department’s recent Inspector General report revealed…

    The IG report also verifies that a McCain aid obtained the Steele reports directly from Fusion GPS co-founder Glenn Simpson, meaning that when McCain transferred the anti-Trump charges to Comey he had to have known that the material originated with a firm that specializes in controversial opposition tactics https://www.breitbart.com/politics/2019/12/26/ig-report-reveals-steele-funneled-claims-through-john-mccain-after-fbi-dropped-him/

 

[Key Spygate figure] Stefan Halper’s father-in-law was notorious CIA operative Ray Cline.

Ray S. Cline, Chief C.I.A. Analyst, Is Dead at 77   March 16, 1996

In 1977, he said the agency’s past practice of paying large sums of money to friendly foreign leaders like King Hussein of Jordan and Mobutu Sese Seko of Zaire had been in keeping with “a morally defensible philosophy of covert political action.” And discussing press disclosures of C.I.A. secrets before a Congressional committee, he told his listeners that “the First Amendment is only an amendment.” The role of secret agencies in defending national security, he believed, carried a greater weight

https://www.nytimes.com/1996/03/16/us/ray-s-cline-chief-cia-analyst-is-dead-at-77.html

Democratic insiders: Bernie could win the nomination [Cuz Biden’s unelectable]

His resiliency in the primary has caught the attention of the party establishment.

    The latest CNN poll found he has the highest net favorability rating of any Democratic presidential candidate…  https://www.politico.com/news/2019/12/26/can-bernie-sanders-win-2020-election-president-089636

Only 98 Turn Out for Biden Town Hall in Iowa; Protester Takes Microphone

https://pjmedia.com/election/watch-only-98-turn-out-for-biden-town-hall-in-iowa-protester-takes-microphone/

Well that is all for today

I will see you Friday night.

 

 

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