JAN 24//CORONAVIRUS EPIDEMIC SPREADS THROUGHOUT CHINA AND OTHER COUNTRIES//MANY NEW CASES AND MORE DEATHS//GOLD UP $6.65 TO $1572.55//SILVER UP 27 CENTS TO $18.11//STRONG QUEUE JUMPING IN SILVER AS BANKERS SCOUR THE PLANET FOR INVENTORY//TURKEY AGAIN IS TRYING TO MUSCLE THEIR WAY INTO THE HUGE ISRAELI GAS FIND: NOW TURKEY WANTS THE GREEK ISLANDS TO DEMILITARIZE//HAFTER ISSUES A NEW FLY ZONE OVER TRIPOLI AND THAT INCLUDES COMMERCIAL PLANES: IF VIOLATED THEY WILL BE SHOT DOWN//TWO HUGE SWAMP STORIES TONIGHT: LAURA INGRAHAM AND THE FISA COURT STORY//

GOLD:$1572,55 UP $6.65    (COMEX TO COMEX CLOSING)

 

 

 

Silver:$18.11 UP 27 CENTS  (COMEX TO COMEX CLOSING)

 

Closing access prices:

Gold :  $1571.00

 

silver:  $18.10

 

 

 

COMEX DATA

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

today RECEIVING: 0/2

EXCHANGE: COMEX
CONTRACT: JANUARY 2020 COMEX 100 GOLD FUTURES
SETTLEMENT: 1,564.600000000 USD
INTENT DATE: 01/23/2020 DELIVERY DATE: 01/27/2020
FIRM ORG FIRM NAME ISSUED STOPPED
____________________________________________________________________________________________
435 H SCOTIA CAPITAL 1
657 C MORGAN STANLEY 1
737 C ADVANTAGE 1
905 C ADM 1
____________________________________________________________________________________________

TOTAL: 2 2
MONTH TO DATE: 2,691

 

we are coming very close to a commercial failure!!

NUMBER OF NOTICES FILED TODAY FOR  JAN CONTRACT: 2 NOTICE(S) FOR 200 OZ (0.0062 tonnes)

TOTAL NUMBER OF NOTICES FILED SO FAR:  2691 NOTICES FOR 269,100 OZ  (8.3701 TONNES)

 

 

 

 

SILVER

 

FOR JAN

 

 

98 NOTICE(S) FILED TODAY FOR 490,000  OZ/

total number of notices filed so far this month: 767 for  3,835,000 oz

 

XXXXXXXXXXXXXXXXXXXXXXXXX

Bitcoin: OPENING MORNING TRADE :  $ 8388 DOWN $20 

 

 

 

Bitcoin: FINAL EVENING TRADE: $ 8498 DOWN 91

 

Let us have a look at the data for today

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IN SILVER THE COMEX OI ROSE A SMALL SIZED 69 CONTRACTS FROM 233,858 UP TO 233,745 WITH OUR TINY  1 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  GOOD  SIZED NUMBER OF COMEX LONGS TRANSFERRING THEIR CONTRACTS TO LONDON THROUGH THE EFP:,

; FEB 0; MARCH:  742 AND MAY: 0 AND JULY: 0 ZERO FOR ALL  OTHER MONTHS  AND THEREFORE TOTAL ISSUANCE  742 CONTRACTS. WITH THE TRANSFER OF 742 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 742 EFP CONTRACTS TRANSLATES INTO 3.710 MILLION OZ  ACCOMPANYING:

1.THE 1 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.

20.970   MILLION OZ  FINAL STANDING IN DEC

3.860     MILLION OZ INITIALLY STANDING IN JAN

 

THURSDAY, 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 1 CENT).. 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 811 CONTRACTS. OR 4.015 MILLION OZ…..

THE TREND SEEMS TO BE THAT OUR BANKERS ARE BECOMING LOATHE TO SUPPLY THE COMEX SILVER (AND GOLD) PAPER. THE EMPHASIS IS NOW ON INCREASINGLY SUPPLYING EXCHANGE FOR PHYSICALS.

 

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

21,573 CONTRACTS (FOR 16 TRADING DAYS TOTAL 21,573 CONTRACTS) OR 107.865 MILLION OZ: (AVERAGE PER DAY: 1348 CONTRACTS OR 6.741 MILLION OZ/DAY)

TO GIVE YOU AN IDEA AS TO THE HUGE SUPPLY THIS MONTH IN SILVER:  SO FAR THIS MONTH OF JAN: 107.865 MILLION PAPER OZ HAVE MORPHED OVER TO LONDON. THIS REPRESENTS AROUND 15.40% 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 2020 TO DATE SILVER EFP’S:          107.865 MILLION OZ.

JANUARY 2020 EFP TOTALS SO FAR: 107.865 MILLION OZ

 

 

RESULT: WE HAD A SMALL SIZED INCREASE IN COMEX OI SILVER COMEX CONTRACTS OF 69, WITH THE 1 CENT GAIN IN SILVER PRICING AT THE COMEX /THURSDAY… THE CME NOTIFIED US THAT WE HAD A VERY  GOOD SIZED EFP ISSUANCE OF 742 CONTRACTS WHICH EXITED OUT OF THE SILVER COMEX AND TRANSFERRED THEIR OI TO LONDON  AS FORWARDS. SPECULATORS CONTINUED THEIR INTEREST IN ATTACKING THE SILVER COMEX FOR PHYSICAL SILVER (SEE COMEX DATA)

TODAY WE GAINED A 69OD SIZED  SIZED: 811 TOTAL OI CONTRACTS ON THE TWO EXCHANGES: 

i.e 742 OPEN INTEREST CONTRACTS HEADED FOR LONDON  (EFP’s) TOGETHER WITH INCREASE OF 69 OI COMEX CONTRACTS.AND ALL OF THIS STRONG DEMAND HAPPENED WITH A ONE CENT GAIN IN PRICE OF SILVER AND A CLOSING PRICE OF $17.84 // 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. 1.169 BILLION OZ TO BE EXACT or 167% of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT JAN MONTH/ THEY FILED AT THE COMEX: 98 NOTICE(S) FOR  490,000 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:  20.970 MILLION OZ; JAN: 3,360,000  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 HUMONGOUS SIZED 9,144 CONTRACTS TO 798,822 AND CLOSE TO SETTING ANOTHER  NEW RECORD (SET JAN 24/2020) AT 799,541  AND  PREVIOUS TO THAT: (SET JAN 6/2020) AT 797,110.

THE HUGE RISE IN COMEX OI OCCURRED WITH A GAIN OF $8.90 IN PRICING ACCOMPANYING COMEX GOLD TRADING// THURSDAY//   IN CONTRAST TO YESTERDAY WE LOST FEW SPREADERS THROUGH LIQUIDATION

 

 

 

THE CME RELEASED THE DATA FOR EFP ISSUANCAND IT TOTALED A  VERY STRONG SIZED 11,788 CONTRACTS:

JAN 2020: 0 CONTRACTS, FEB>  8831 CONTRACTS; MARCH 00 APRIL: 2257; JUNE. 700 AND ALL OTHER MONTHS ZERO.  The NEW COMEX OI for the gold complex rests at 798,822,.  ALSO REMEMBER THAT THERE WILL BE A DELAY IN THE ISSUANCE OF EFP’S.  THE BANKERS REMOVE LONG POSITIONS OF COMEX GOLD IMMEDIATELY.  THEN THEY ORCHESTRATE THEIR PRIVATE EFP DEAL WITH THE LONGS AND THAT COULD TAKE AN ADDITIONAL, 48 HRS SO WE GENERALLY DO NOT GET A MATCH WITH RESPECT TO DEPARTING COMEX LONGS AND NEW EFP LONG TRANSFERS. . EVEN THOUGH THE BANKERS ISSUED THESE MONSTROUS EFPS, THE OBLIGATION STILL RESTS WITH THE BANKERS TO SUPPLY METAL BUT IT TRANSFERS THE RISK TO A LONDON BANKER OBLIGATION AND NOT A NEW YORK COMEX OBLIGATION. LONGS RECEIVE A FIAT BONUS TOGETHER WITH A LONG LONDON FORWARD. THUS, BY THESE ACTIONS, THE BANKERS AT THE COMEX HAVE JUST STATED THAT THEY HAVE NO APPRECIABLE METAL!! THIS IS A MASSIVE FRAUD: THEY CANNOT SUPPLY ANY METAL TO OUR COMEX LONGS BUT THEY ARE QUITE WILLING TO SUPPLY MASSIVE NON BACKED GOLD (AND SILVER) PAPER KNOWING THAT THEY HAVE NO METAL TO SATISFY OUR LONGS. LONDON IS NOW SEVERELY BACKWARD IN BOTH GOLD AND SILVER  AND WE ARE WITNESSING DELAYS IN ACTUAL DELIVERIES.

IN ESSENCE WE HAVE AN ATMOSPHERIC AND CRIMINALLY SIZED GAIN IN TOTAL CONTRACTS ON THE TWO EXCHANGES OF 20,932 CONTRACTS: 9144 CONTRACTS INCREASED AT THE COMEX  AND 11,788 EFP OI CONTRACTS WHICH NAVIGATED OVER TO LONDON. THUS  TOTAL OI GAIN OF 20,932 CONTRACTS OR 2,093,200 OZ OR 65.11 TONNES.  THURSDAY WE HAD A STRONG GAIN OF $8.90 IN GOLD TRADING….

AND WITH THAT GAIN IN  PRICE, WE  HAD A POWERFUL ADVANCE IN GOLD TONNAGE OF 65.11  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 $8.90)THEY WERE TOTALLY  UNSUCCESSFUL IN THEIR ATTEMPT TO  FLEECE  GOLD LONGS FROM THE GOLD ARENA AS WE HAD OUR HUMONGOUS GAIN IN OPEN INTEREST ON OUR TWO EXCHANGES (65.11 TONNES). THE SPREADING OPERATION HAS NOW SWITCHED OVER TO SILVER.

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

 

 

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 GOLD 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 NON  ACTIVE DELIVERY MONTH OF JAN HEADING TOWARDS THE  NON ACTIVE DELIVERY MONTH OF FEBRUARY FOR GOLD:

AS I HAVE MENTIONED IN PREVIOUS COMMENTARIES, HERE IS THE BANKERS MODUS OPERANDI:

YOU WILL ALSO NOTICE THAT THE COMEX OPEN INTEREST  STARTS TO RISE IN THIS NON  ACTIVE MONTH OF JAN.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  ACTIVE DELIVERY MONTH (FEB), AND THAT IS WHEN THE CROOKS SELL THEIR SPREAD POSITIONS BUT NOT AT THE SAME TIME OF THE DAY.  THEY WILL USE THE SELL SIDE OF THE EQUATION TO CREATE THE CASCADE (ALONG WITH THEIR COLLUSIVE FRIENDS) AND THEN COVER ON THE BUY SIDE OF THE SPREAD SITUATION AT THE END  OF THE DAY. THEY DO THIS TO AVOID POSITION LIMIT DETECTION. THE LIQUIDATION OF THE SPREADING FORMATION CONTINUES FOR EXACTLY ONE WEEK AND ENDS ON FIRST DAY NOTICE.”

 

 

 

 

 

ACCUMULATION OF EFP’S GOLD AT J.P. MORGAN’S HOUSE OF BRIBES: (EXCHANGE FOR PHYSICAL) FOR THE MONTH OF JAN : 140,891 CONTRACTS OR 14,089,100 oz OR 438.23 TONNES (16 TRADING DAYS AND THUS AVERAGING: 8593 EFP CONTRACTS PER TRADING DAY

TO GIVE YOU AN IDEA AS TO THE STRONG SIZE OF THESE EFP TRANSFERS :  THIS MONTH IN 16 TRADING DAY(S) IN  TONNES: 438.23 TONNES

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

THUS EFP TRANSFERS REPRESENTS 438.23/3550 x 100% TONNES =12.34% OF GLOBAL ANNUAL PRODUCTION

 

 

ACCUMULATION OF GOLD EFP’S YEAR 2019 TO DATE:    438.23  TONNES

JANUARY 2220 TOTAL EFP ISSUANCE; SO FAR: 438.23 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 HUMONGOUS SIZED INCREASE IN OI AT THE COMEX OF 9,144 WITH THE STRONG PRICING GAIN THAT GOLD UNDERTOOK THURSDAY($8.90)) //.WE ALSO HAD A VERY STRONG SIZED NUMBER OF COMEX LONG TRANSFERRING TO LONDON THROUGH THE EFP ROUTE: 11,788 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 TH GOLD COMEX FOR DELIVERY PURPOSES. IF YOU TAKE INTO ACCOUNT THE 11,788 EFP CONTRACTS ISSUED, WE  HAD AN ATMOSPHERIC AND CRIMINALLY SIZED GAIN OF 20,932 CONTRACTS IN TOTAL OPEN INTEREST  ON THE TWO EXCHANGES:

11,788 CONTRACTS MOVE TO LONDON AND 9,144 CONTRACTS INCREASED AT THE COMEX. (IN TONNES, THE GAIN IN TOTAL OI EQUATES TO 65.11 TONNES). ..AND THIS  INCREASE OF DEMAND OCCURRED WITH THE GAIN IN PRICE OF $8.90 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 $6.65 TODAY

 

A STRONG INVENTORY ADVANCE IN THE GLD

A DEPOSIT OF 1.76 TONNES INTO THE GLD//

 

 

JAN 24/2019/Inventory rests tonight at 900.58 tonnes

 

 

 

 

 

SLV/

 

 

WITH SILVER UP 27 CENTS TODAY

THE FOLKS AT SLV FOUND RELIGION:

A BIG CHANGE IN SILVER INVENTORY:

A MASSIVE  PAPER DEPOSIT OF: 5,975,000 OZ INTO THE SLV//

 

JAN 24/INVENTORY RESTS AT 359.805 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 SMALL SIZED 69 CONTRACTS from 233,676 DOWN TO 233,745 AND CLOSER TO OUR 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 3/4 YEARS AGO.  THE PRICE OF SILVER ON THAT DAY: $17.89.

 

EFP ISSUANCE 2817

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  742:  AND MAY: 0; JULY: 0 CONTRACTS   AND ALL OTHER MONTHS: ZERO. TOTAL EFP ISSUANCE: 742 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 69 CONTRACTS TO THE 742 OI TRANSFERRED TO LONDON THROUGH EFP’S,  WE OBTAIN A GOOD GAIN OF 811 OPEN INTEREST CONTRACTS. THUS IN OUNCES, THE GAIN ON THE TWO EXCHANGES: 4.055 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: 20.970 MILLION OZ//JAN: 3.8600 MILLION OZ//

 

 

RESULT: A SMALL SIZED INCREASE IN SILVER OI AT THE COMEX WITH THE 1 CENT GAIN IN PRICING THAT SILVER UNDERTOOK IN PRICING// THURSDAY. WE ALSO HAD A STRONG SIZED 742 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 LUNAR HOLIDAY WEEK //Hang Sang CLOSED ..LUNAR HOLIDAY   /The Nikkei closed UP 31.74 POINTS OR 0.13%//Australia’s all ordinaires CLOSED UP .06%

/Chinese yuan (ONSHORE) closed UP  at 6.9109 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED UP // LAST AT 6.9109 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9298 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING 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/WUHAN CITY

40 MILLION QUARANTINED, 900 INFECTED..26 OFFICIAL DEATHS SO FAR (NO DOUBT TERRIBLY UNDERSTATED

(zerohedge)

ii)Epoch Times/Hao//The Coronavirus

Chinese authorities have now shut down just about every part of China.  Since China is the engine for growth in the world this is not good for the global economy
Epoch Times/Hao//The Coronavirus

iii)CHINA/CORONAVIRUS/SIMULATION

A simulation on the coronavirus done 3 months ago predicts 65 million deaths

(zerohedge)

iv)CHINA/USA

Soybean prices plunge to six week lows due to lack of purchase by the Chinese

(zerohedge)

 

4/EUROPEAN AFFAIRS

i)EU/PMI

The European PMI’s seems to have stabilized but still indicates that the economy has not picked up over there

(zerohedge)

ii)GERMANY/LIBYA/SYRIAN MIGRANTS

Expect more migrant movements from Libya as this country is without a doubt another proxy war.  Hillary’s removal of Gaddafi  is providing huge problems for Libya.

(zerohedge)

iii)SWITZERLAND/EUROPE

Negative interest rates are proving to be huge problems for European banks and their economy. We are seeing two resulting effects on this:

1 the stashing of huge amounts of cash in vaults so they will not have to pay the interest charges

2 large amounts of gold is purchased

(zerohedge)

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

i)TURKEY/SYRIA/GREECE

Turkey is badly in need for gas as they try and muscle their way into the big Israeli discovery several years ago. Now Turkey is demanding that Greece demilitarize 16 Aegean islands.  Ironically it is the Turks that are waging war and blocking ships form drilling for oil gas/oil

(zerohedge)

ii)LIBYA/TURKEY

Not good:  USA backed Hafter has now threatened to target civilian planes and declares a no fly zone over Tripoli.  Turkey not happy with this

(zerohedge)

iii)IRAQ/USA

Trump now agrees to supply anti missile systems in Iraq after the Iranian attack a few weeks ago.  He downplays the USA injuries

(zerohedge)

iv)IRAN/USA INJURED USA SOLDIERS

It seems that 34 USA soldiers suffered traumatic brain injuries from the Iranian attack.  Seventeen are still in hospital
(zerohedge)

6.Global Issues

 

7. OIL ISSUES

 

8 EMERGING MARKET ISSUES

 

9. PHYSICAL MARKETS

Meet the Squid and how many alumni are heads of central banks

(Pam and Russ Martens/Wall Street on Parade)

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

Another sign that the USA economy is stumbling PMI’s contract badly for the 2nd straight month

(zerohedge)

iii) Important USA Economic Stories

a)The Fed/Repo/QE

We warned you that this will happen.  The Fed has been purchasing treasury bill with reckless abandon. Now they are distorting the market and BMO predicts that they will have to resort to purchases of treasury bonds with short duration.  They also predict that the Fed will announce tapering but that will also end abruptly as the markets need liquidity badly

(zerohedge)

b)As promised, Wolf Richter outlines how the USA shale industry is now witnessing a huge jump in bankruptcies

(Wolf Richter/WolfStreet)

c)DISCOVER/CREDIT CARD

Despite earnings per share gain, the stock crashes as the balance sheet indicates the highest Q4 charge off rate this decade

(zerohedge)

d)Boeing/more troubles

Now we have reports that the 787 will endure production cuts

(zerohedge)

 

iv) Swamp commentaries)

a)This is a huge story: Laura Ingraham reveals that the New York Times quashed a huge story on a White House meeting with the whistleblower Eric Ciaramella and State official Zentos where  the officials were worried about the optics of the free money Hunter Biden received while Joe Biden was the point man on the Ukraine.  In more disturbing news, the Ukrainian prosecutors were already dealing with the probe on the corruption of Burisma, 3 months prior to phone call…in other  words the whistleblower and the Democrat case against Trump is garbage

( Heine/American Greatness Blog/Laura Ingraham//zerohedge)

 

b)Another big story:  The surveillance on Carter Page according to a new report by the FISA court was based on insufficient evidence and had no probable cause.

In other words the data received by the surveillance is now tainted having been received from a “poison tree””

 

 

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 HUMONGOUS SIZED 9,144 CONTRACTS TO 8798,822 COMING CLOSE TO SETTING ANOTHER NEW RECORD.  THAT  RECORD WAS SET LAST WEEK: {799,541  OI(SET JAN 16/2020)} AND  PREVIOUS TO THAT: 797,110 (SET JAN 7/2020).  AND THIS GAIN IN OI WAS SET WITH A CONSIDERABLE GAIN OF $8.90 IN GOLD PRICING //THURSDAY’S // COMEX TRADING).  AFTER A FEW HIATUS DAYS WITH RESPECT TO OUR BANKER FRIENDS NOT ADDING MUCH OI TO THE COMEX, THAT CHANGED WITH A VENGEANCE TODAY.

 

WE ARE NOW IN THE  NON ACTIVE DELIVERY MONTH OF JAN..  THE CME REPORTS THAT THE BANKERS ISSUED A ,VERY STRONG SIZED  TRANSFER THROUGH THE EFP ROUTE AS THESE LONGS RECEIVED A DELIVERABLE LONDON FORWARD TOGETHER WITH A FIAT BONUS., THAT IS 11,788 EFP CONTRACTS WERE ISSUED:

  FEB: 8831; MARCH 00 AND APRIL: 2257,  JUNE : 700 AND  ZERO FOR ALL OTHER MONTHS:

TOTAL EFP ISSUANCE: 11,788 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: AN ATMOSPHERIC SIZED 20,932 TOTAL CONTRACTS IN THAT 11,788 LONGS WERE TRANSFERRED AS FORWARDS TO LONDON AND WE GAINED A HUMONGOUS SIZED 9,144 COMEX CONTRACTS.

THE BANKERS SUPPLIED THE NECESSARY AND INFINITE AMOUNT OF SHORT PAPER IN GOLD.  THE BANKERS WERUNSUCCESSFUL IN LOWERING GOLD’S PRICE //// (IT ROSE BY $8.90). AND THEY WERE MOST DEFINITELY UNSUCCESSFUL IN FLEECING ANY LONGS AS WE GAINED A HUMONGOUS SIZED  20,932 CONTRACTS ON OUR TWO EXCHANGES….

 

NET GAIN ON THE TWO EXCHANGES ::  20932 CONTRACTS OR 2,093,200 OZ OR 65.11 TONNES.  

 

COMMODITY LAW SUGGESTS THAT COMMODITY FUTURES OPEN INTEREST SHOULD APPROXIMATE 3% OF TOTAL PRODUCTION.  IN GOLD THE WORLD PRODUCES AROUND 3500 TONNES PER YEAR BUT ONLY 2200 TONNES ARE AVAILABLE FROM THE WEST (THUS EXCLUDING RUSSIA, CHINA ETC..WHO KEEP 100% OF THEIR PRODUCTION)

THUS IN GOLD WE HAVE THE FOLLOWING:  800,104 TOTAL OI CONTRACTS X 100 OZ PER CONTRACT = 79.88 MILLION OZ/32,150 OZ PER TONNE =  2,484 TONNES

THE COMEX OPEN INTEREST REPRESENTS 2,484/2200 OR 112.9% OF ANNUAL GLOBAL PRODUCTION OF GOLD.

 

We are now in the   NON active contract month of JAN.  This month is generally one of the poorest of delivery months for the year.  Here we have a total of 21 open interest left to be served upon, for a LOSS of 9 contracts.   We had 9 notices served up on yesterday so we  gained 0 contracts or an additional NIL oz will stand for delivery in this non active delivery month of January. I can now safely say that the comex is under attack for metal!!

The next active delivery month after January is February and here we witnessed a LOSS OF ONLY 23,219!!!!! in contracts DOWN to 280,014.  

March GAINED 411 contracts to stand at an open interest of, 1580.

The next active delivery month after March is April and here we witnessed a gain of 30,900 contacts up to 367,125 oi contracts.

We had 2 open interest notices served upon today for 200 oz

the front month of February is not contracting enough (WITH RESPECT TO OI) and thus it seems we will have another strong amount of gold standing for delivery. We have just 5 more reading days before first day notice.  

 

 

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And now for the wild silver comex results

Total COMEX silver OI ROSE BY A TINY SIZED 69 CONTRACTS FROM 233,676 DOWN TO 233,745 (AND CLOSER TO THE NEW RECORD OI FOR SILVER SET ON AUGUST 22.2018 (244,196).  THE PREVIOUS RECORD WAS SET APRIL 9.2018/ 243,411 CONTRACTS) AND OUR  OI COMEX GAIN OCCURRED WITH A TINY 1 CENT GAIN IN PRICING/THURSDAY.

OUR BANKERS ARE LOATHE TO SUPPLY ADDITIONAL SILVER COMEX PAPER. IN GOLD WE JUST WITNESSED THE OPPOSITE

WE ARE NOW INTO THE  NON-ACTIVE DELIVERY MONTH OF JAN.

Here we have a GAIN of 100 contracts TO 103. We had 0 notices served on yesterday, so we gained 100 CONTRACTS or 500,000 additional oz will stand at the comex for delivery  during this non active delivery month of January.

 

 

 

 

 

After January, we have  the non active month of February and here we saw a loss of 20 contracts TO A LEVEL OF  415.  March is a very active month and here we witness a loss of 712 contracts  DOWN 172,223

WE ARE GOING TO HAVE A STRONG FEBRUARY SILVER STANDING FOR METAL.

 

 

We, today, had 98 notice(s) filed for 490,000, OZ for the JAN, 2019 COMEX contract for silver

Trading Volumes on the COMEX TODAY: 511,151 contracts    

 

 

 

 

CONFIRMED COMEX VOL. FOR YESTERDAY:  443,923 contracts

 

 

 

INITIAL standings for  JAN/GOLD

 

 

 

Let us head over to the comex:

JAN 24/2020

 

 

Gold Ounces
Withdrawals from Dealers Inventory in oz nil oz
Withdrawals from Customer Inventory in oz
nil oz
Deposits to the Dealer Inventory in oz 1999.98 oz

 

HSBC

 

 

Deposits to the Customer Inventory, in oz  

nil

 

No of oz served (contracts) today
2 notice(s)
 200 OZ
(0.0062 TONNES)
No of oz to be served (notices)
19 contracts
(1900 oz)
0.0590 TONNES
Total monthly oz gold served (contracts) so far this month
2691 notices
269,100 OZ
8.3701 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 1 deposit into the customer account

i) Into JPMorgan: nil  oz

 

 

ii)into HSBC: 1999.98 oz

 

total deposits:  1999.98  oz

 

 

 

we had 0 gold withdrawals from the customer account:

 

 

total gold withdrawals;  0 oz

 

ADJUSTMENTS:  2

i)out of HSBC;  9260.948 oz was adjusted out of the dealer and this landed into the customer account and we will deem that a settlement:

ii) Out of International Delaware:  14,371.491 oz was adjusted out of the dealer account into the customer account and we will deem that a settlement

total weight; 23,632.439 oz or.7350 tonnes

 

NEW PLEDGED GOLD:  BRINKS

3027.500 OZ  ADDED TO THE PLEDGED ACCOUNT JAN 10.2020/Brinks

207,363.857 oz NOW PLEDGED  JAN 21.2020/HSBC

 

 

 

 

 

 

FOR THE JAN 2020 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 2 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 JAN /2020. contract month, we take the total number of notices filed so far for the month (2691) x 100 oz , to which we add the difference between the open interest for the front month of  JAN. (21 contracts) minus the number of notices served upon today (2 x 100 oz per contract) equals 271,000 OZ OR 8.429 TONNES) the number of ounces standing in this NON active month of JAN

Thus the INITIAL standings for gold for the JAN/2020 contract month:

No of notices served (2691 x 100 oz)  + (21)OI for the front month minus the number of notices served upon today (2 x 100 oz )which equals 271000 oz standing OR 8.429 TONNES in this  NON active delivery month of JAN.

WE GAINED 0 CONTACTS OR AN ADDITIONAL 1500 OZ WILL STAND AT THE COMEX AND THUS REFUSE TO MORPH INTO LONDON BASED FORWARDS. BY REFUSING TO TRAVEL TO LONDON THEY ALSO NEGATED A FIAT BONUS.

 

 

 

SURPRISINGLY WE HAVE BEEN WITNESSING NO REAL PHYSICAL GOLD ENTERING THE COMEX VAULTS FOR THE PAST YEAR!! ..ONLY PHONY KILOBAR ENTRIES…. WE HAVE ONLY 34.956 TONNES OF REGISTERED GOLD WHICH CAN SETTLE UPON LONGS.

HERE IS WHAT STOOD DURING THESE PAST 6 MONTHS:  AUGUST 27.153 TONNES

SEPT:                                                                      5.4525 TONNES

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

NOV……                                                                5.3841 tonnes

DEC………………………….                                              45.912 TONNES

JAN……………………                                                    8.429 TONNES

 

total: 130,32 tonnes

ACCORDING TO COMEX RULES:

 

IF WE INCLUDE THE PAST 6 MONTHS OF SETTLEMENTS WE HAVE 20.017 TONNES SETTLED

 

IF WE ADD THE FIVE DELIVERY MONTHS: 130.32  tonnes

 

Thus:

130.32 tonnes of delivery –

20.017 TONNES DEEMED SETTLEMENT

= 110.30 TONNES STANDING FOR METAL AGAINST 34.956 TONNES OF REGISTERED OR FOR SALE COMEX GOLD! THIS IS WHY GOLD IS SCARCE AT THE COMEX.

 

total registered or dealer gold:   1,309627.530 oz or  40.734 tonnes
which  includes the following:
a) pledged gold held at HSBC + BRINKS  which cannot settled upon   210,391.357 oz x ( 6.54403 TONNES)//
b)registered gold that can be used to settle upon:1,099,236.2  (34.190 tonnes)
true registered gold  (total registered – pledged tonnes  1,099263.2  (34.190 tonnes)
total registered, pledged  and eligible (customer) gold;   8,693,914.470 oz 270.42 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.
3. NO GOLD IS ENTERING THE COMEX

WHY ARE THEY NOT SETTLING?

 

THE COMEX IS AN ABSOLUTE FRAUD..

 

end

And now for silver

AND NOW THE  DELIVERY MONTH OF JAN.

INITIAL  standings/SILVER

IN TOTAL CONTRAST TO GOLD, HUGE ACTIVITY IN SILVER TODAY.
JAN 24 2019
Silver Ounces
Withdrawals from Dealers Inventory NIL oz
Withdrawals from Customer Inventory
 nil oz

 

 

Deposits to the Dealer Inventory
nil oz

 

Deposits to the Customer Inventory
1,202,359.772 oz
CNT
HBSC
No of oz served today (contracts)
98
CONTRACT(S)
(490,000 OZ)
No of oz to be served (notices)
5 contracts
 25,000 oz)
Total monthly oz silver served (contracts)  767 contracts

3,835,000 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 2 deposits into the customer account

into JPMorgan:   0

 

ii) Into HSBC: 601,773.056 oz

II) into CNT: 600,586.716 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 50.0% of all official comex silver. (161.3 million/322.008 million

 

 

 

 

total customer deposits today:  1,202,359.772  oz

 

we had 0 withdrawals out of the customer account:

 

 

 

 

 

 

 

 

 

 

 

 

 

total withdrawals; 0   oz

We had 0 adjustment:

 

 

 

total dealer silver:  85.897 million

total dealer + customer silver:  322.008 million oz

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

The total number of notices filed today for the JAN 2020. contract month is represented by 98 contract(s) FOR nil oz

To calculate the number of silver ounces that will stand for delivery in  JAN, we take the total number of notices filed for the month so far at 767 x 5,000 oz =3,835,000 oz to which we add the difference between the open interest for the front month of JAN. (103) and the number of notices served upon today 98 x (5000 oz) equals the number of ounces standing.

.

Thus the INITIAL standings for silver for the JAN/2019 contract month: 767 (notices served so far) x 5000 oz + OI for front month of JAN (103- number of notices served upon today (98) x 5000 oz equals 3,860,000 oz of silver standing for the JAN contract month.

WE GAINED 100 CONTRACTS OR AN ADDITIONAL 500,000 OZ WILL STAND FOR METAL AT THE COMEX AND REFUSE TO MORPH INTO LONDON BASED FORWARDS. BY DOING THIS THEY ALSO NEGATED RECEIVING A FIAT BONUS.

 

 

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

 

 

TODAY’S NUMBER OF NOTICES FILED:

 

We, today, had 98 notice(s) filed for 490,000 OZ for the JAN, 2019 COMEX contract for silver

 

 

TODAY’S ESTIMATED SILVER VOLUME:  67,667 CONTRACTS //

 

 

CONFIRMED VOLUME FOR YESTERDAY: 73,535 CONTRACTS..

 

 

 

 

 

YESTERDAY’S CONFIRMED VOLUME OF73,535 CONTRACTS EQUATES to 367 million  OZ   52.5.% OF ANNUAL GLOBAL PRODUCTION OF SILVER..

 

 

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

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

The previous record was 224,540 contracts with the price at that time of $20.44

 

end

 

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NPV for Sprott

 

1. Sprott silver fund (PSLV): NAV FALLS TO -1.45% ((JAN 24/2019)

2. Sprott gold fund (PHYS): premium to NAV FALLS TO -0.55% to NAV (JAN 24/2019 )

Note: Sprott silver trust back into NEGATIVE territory at +%-/Sprott physical gold trust is back into NEGATIVE/ -1.45%

(courtesy Sprott/GATA)

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

NAV 15.61 TRADING 15.23///DISCOUNT  2.46

 

END

 

 

 

 

And now the Gold inventory at the GLD/

JAN 24//WITH GOLD UP $6.65 TODAY: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 1.76 TONNES INTO THE GLD//INVENTORY RESTS AT 900.58 TONNES

JAN 23/WITH GOLD UP $8.90 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 898.82 TONNES

JAN 22/WITH GOLD DOWN $1.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A MAMMOTH 19.33 TONNES OF PAPER GOLD ADDED//INVENTORY RESTS AT 898.82 TONES

JAN 21/2010//WITH GOLD DOWN $2.00 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 879.49 TONNES

JAN 17/WITH GOLD UP $9.60 TODAY: A BIG CHANGES IN GOLD INVENTORY AT THE GLD: ANOTHER PAPER DEPOSIT OF 1.17 TONNES//INVENTORY RESTS AT 879.49

JAN 16//WITH GOLD DOWN $3.00 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 3.80 TONNES OF GOLD INTO THE GLD./INVENTORY RESTS AT 878.32

JAN 15/WITH GOLD UP $9.55 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 874.52 TONNES

JAN 14/WITH GOLD DOWN $5.00 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 874.52 TONNES

JAN 13/WITH GOLD DOWN $8.75 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 7.6 TONNES OF GOLD WHICH WAS USED IN THE RAID TODAY////INVENTORY RESTS AT 874.52 TONNES

JAN 10/WITH GOLD UP $5.80 TODAY:NA HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 4.69 TONNES//INVENTORY RESTS AT 882.12 TONNES

JAN 9/WITH GOLD DOWN $5.50 TODAY: NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 886.81 TONNES

JAN 8/WITH GOLD DOWN $14.10 TODAY: A HUGE CHANGE IN GOLD INVENTORY AT THE GLD: A PAPER WITHDRAWAL OF 9.37 TONNES FROM THE GLD//INVENTORY RESTS AT 886.81 TONNES

JAN 7/WITH GOLD UP $7.00 A GOOD INVENTORY PAPER DEPOSIT OF 0.88 TONNES  IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 896.18 TONNES

JAN 6/WITH GOLD UP #15.40 NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 895.30 TONNES

JAN 3/WITH GOLD UP $24.60: A BIG CHANGE IN GOLD INVENTORY AT THE GLD: A DEPOSIT OF 2.05 TONES INTO THE GLD../INVENTORY RESTS AT 895.30

JAN 2/2020//WITH GOLD UP $5.20: NO CHANGE IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 893.25

DEC 31/WITH GOLD UP $4.65: NO CHANGE IN GOLD INVENTORY AT THE GLD/INVENTORY RESTS AT 893.25 TONNES

DEC 30//WITH GOLD UP $2.05//NO CHANGES IN GOLD INVENTORY AT THE GLD//INVENTORY RESTS AT 892.37 TONNES

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

 

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JAN 24/2019/Inventory rests tonight at 879.49 tonnes

*IN LAST 748 TRADING DAYS: 36.87 NET TONNES HAVE BEEN REMOVED FROM THE GLD

*LAST 648 TRADING DAYS: A NET 130.18. TONNES HAVE NOW BEEN ADDED INTO  THE GLD INVENTORY.

 

end

 

Now the SLV Inventory/

JAN 24//WITH SILVER UP 27 CENTS TODAY: A HUGE PAPER DEPOSIT OF 5.975 MILLION OZ INTO THE SLV//INVENTORY RESTS AT 359.805 MILLION OZ//

JAN 23/WITH SILVER UP ONE CENT TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 353.830 MILLION OZ..

JAN 22/WITH SILVER DOWN ONE CENT: A HUGE CHANGE IN SILVER INVENTORY: A WITHDRAWAL OF 1.027 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 353.830 OZ

JAN 21/WITH SILVER DOWN 24 CENTS TODAY: NO CHANGES IN SILVER INVENTORY FROM THE SLV//INVENTORY RESTS AT 354.437 MILLION OZ//

JAN 17/WITH SILVER UP 12 CENTS TODAY: A SMALL WITHDRAWAL OF 420,000 OZ FROM THE SLV//INVENTORY RESTS AT 354.437 MILLION OZ.

JAN 16/WITH SILVER DOWN 2 CENTS TODAY: A CONSIDERABLE CHANGES IN SILVER INVENTORY AT THE SLV: A WITHDRAWAL OF 840,000 OZ FROM THE SLV//INVENTORY RESTS AT 354,857 MILLION OZ//

JAN 15/WITH SILVER UP 21 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 355.697 MILLION OZ//

JAN 14/WITH SILVER DOWN 23 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 355.697 MILLION OZ//

JAN 13/WITH SILVER DOWN 10 CENTS TODAY: A HUGE  CHANGE IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 1.261 MILLION OZ FROM THE SLV//INVENTORY RESTS AT 355.697 MILLION OZ//

JAN 10/WITH SILVER UP 16 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 356.958 MILLION OZ//

JAN 9/WITH SILVER DOWN 24 CENTS TODAY: A HUGE CHANGES IN SILVER INVENTORY AT THE SLV: A PAPER WITHDRAWAL OF 3.268 MILLION OZ////INVENTORY RESTS AT 356.958 MILLION OZ///

JAN 8/WITH SILVER DOWN 21 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 360.226 MILLION OZ//

JAN 7.//WITH SILVER UP 23  CENTS TODAY: ANOTHER MASSIVE PAPER WITHDRAWAL OF 1.214 MILLION OZ IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 360.226 MILLION OZ..

JAN 6/WITH SILVER UP 3 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 361.440 MILLION OZ///

JAN 3/2020//WITH SILVER UP 12 CENTS TODAY: ANOTHER HUGE PAPER WITHDRAWAL OF 1.176 MILLION OZ  IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 361.440  MILLION OZ///

SINCE DEC 23 WE HAVE HAD A 94 CENT GAIN CORRESPONDING TO A 2.39 MILLION OZ OF PAPER WITHDRAWALS..AN ABSOLUTE FRAUD!

JAN 2/2020/WITH SILVER UP 12 CENTS TODAY: A HUGE PAPER WITHDRAWAL OF 1.214 MILLION OZ FROM THE SLV INVENTORY: INVENTORY RESTS AT 362.616 MILLION OZ

DEC 31/WITH SILVER DOWN 7 CENTS TODAY/NO CHANGE IN SILVER INVENTORY AT THE SLV/INVENTORY RESTS AT 363.830 MILLION OZ//

DEC 30/WITH SILVER UP 6 CENTS TODAY: NO CHANGES IN SILVER INVENTORY AT THE SLV//INVENTORY RESTS AT 363.830 MILLION OZ//

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//

 

JAN 24.2020:  SLV INVENTORY

359.805 MILLION OZ

 

 

LIBOR SCHEDULE AND GOFO RATES:

 

 

YOUR DATA…..

6 Month MM GOFO 1.77/ and libor 6 month duration 1.82

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

G0LD LENDING RATE: + .05

 

XXXXXXXX

12 Month MM GOFO
+ 1.81%

LIBOR FOR 12 MONTH DURATION: 1.89

 

GOFO = LIBOR – GOLD LENDING RATE

GOLD LENDING RATE  = +.08

end

 

 

end

 

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

“Cash Is Trash” In 2020, Hold Gold In a Diversified Portfolio – Dalio at Davos

Ray Dalio of Bridgewater via Quotefancy

◆ “Cash is trash” and investors should diversify and own gold as part of a diversified portfolio, world’s largest hedge fund manager told CNBC (see news below) at Davos

◆ For the second time in as many weeks, the world’s largest hedge fund, Bridgewater and its founder Dalio is encouraging investors to diversify into gold as a hedge

◆ The billionaire investor warned investors not to “jump into cash,” and said that “cash is trash … because they’re going to print money.”

◆ Dalio warned very uncertain and difficult economic times ahead and advised holding gold, rather than bitcoin, as a proven safe haven asset

◆ Bitcoin is neither a medium of exchange or a store of value and may never be; it is simply too volatile to act as a proper store of value

◆ Dalio’s Bridgewater Associates predicts the gold price will likely climb 30% to $2,000 in 2020

Related Content

“Do You Own Gold?” “I Do” – Ray Dalio at CFR

Bitcoin “Is A Bubble” but Gold Is Money Says World’s Biggest Hedge Fund Manager

World’s Largest Hedge Fund Sees Gold Rising 30% To $2,000

In this special podcast to celebrate GoldCore’s appointment as an Approved Distributor of The Royal Mint, the GoldCore team discuss the ‘3 Key Things to Protect Your Finances in the 2020s’ – Watch Podcast Here

NEWS and COMMENTARY

‘Cash is trash’ – Dalio advises investors hold gold and a global, diversified portfolio

Gold inches lower as investors seek clarity on virus severity

Gold ends at a more than 2-week high as spread of China flu fuels haven demand for the metal

Calls for a US ‘digital dollar’ rise as China powers ahead with a digital yuan

World could have just 5 or 6 currencies by 2040, Brazil’s economy minister says

Tether Says Its Newest Stablecoin Is Backed by Gold in Swiss Vault

Germany’s finance minister Scholz says he’s ‘confident’ that a US-EU trade deal will happen

X Marks the Spot: Source of King Tut’s Gold Found Thanks to Ancient Egyptian Temple’s Secret

Exclusive Gold Offer – For Retail, Pension and HNW Investors

Distributor_colour_RGB

To celebrate our appointment as a Royal Mint Approved Distributor, we are offering newly minted 2020 Gold Britannias and Gold Sovereigns at incredibly reduced premiums for all lump sum and pension investments worth more than £10,000, €12,000 or $14,000.

We are also giving 12 months of Secure Storage free of charge. Investors must trade before March 20th to qualify for the Exclusive Offer.

Key benefits and information here

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

23-Jan-20 1554.05 1562.90, 1182.94 1191.24 & 1401.91 1411.77
22-Jan-20 1558.10 1556.90, 1193.19 1186.20 & 1404.78 1406.04
21-Jan-20 1556.25 1551.30, 1192.87 1188.14 & 1401.25 1397.26
20-Jan-20 1559.25 1560.15, 1200.93 1200.38 & 1406.76 1407.72
17-Jan-20 1556.50 1557.60, 1193.21 1195.15 & 1399.60 1402.93
16-Jan-20 1555.20 1554.55, 1190.97 1190.94 & 1393.61 1394.90
15-Jan-20 1551.90 1549.00, 1194.65 1189.01 & 1394.23 1389.14
14-Jan-20 1544.95 1545.10, 1190.69 1188.49 & 1387.83 1389.35
13-Jan-20 1550.35 1549.90, 1194.54 1192.96 & 1394.85 1393.52

SIGN UP FOR OUR AWARD WINNING MARKET UPDATES HERE

 

Mark O’Byrne
Executive Director

 

ii) Important gold commentaries courtesy of GATA/Chris Powell

Meet the Squid and how many alumni are heads of central banks

(Pam and Russ Martens/Wall Street on Parade)

Pam and Russ Martens: Alumni of the ‘vampire squid’ control two Fed banks, U.S. Treasury, ECB, and Bank of England

 Section: 

By Pam and Russ Martens
Wall Street on Parade
Thursday, January 23, 2020

The head of the Federal Reserve Bank of Dallas (Robert S. Kaplan), the head of the Federal Reserve Bank of Minneapolis (Neel Kashkari), the secretary of the U.S. Treasury (Steve Mnuchin), the president of the European Central Bank (Mario Draghi), and the head of the Bank of England (Mark Carney) all have two things in common: They sit atop vast amounts of money and they are all alums of Goldman Sachs.

In addition, the immediate past president of the Federal Reserve Bank of New York, William Dudley, which secretly sluiced over $29 trillion to bail out Wall Street banks during the financial crisis and has now opened its money spigot for trillions of dollars more, worked at Goldman Sachs for more than two decades, rising to the rank of partner and U.S. Chief Economist.

… 

Goldman Sachs has been variously depicted as “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money,” by Matt Taibbi of Rolling Stone; or the amoral investment bank that bundled mortgages it knew would fail and sold them to their clients as good investments so that it could make millions betting against them (shorting); or the place where greed became so over-the-top that a vice president, Greg Smith, resigned on the editorial page of the New York Times, writing that his colleagues callously talked “about ripping their clients off.”

Smith’s bosses were implicated as well: “Over the last 12 months I have seen five different managing directors refer to their own clients as ‘muppets,'” Smith wrote.

Today Goldman Sachs is under a criminal investigation by the U.S. Department of Justice and under a criminal indictment by Malaysia for its role in bribery and embezzlement of its sovereign wealth fund known as 1MDB.

Goldman Sachs’ notorious history has not stopped its alum from magically landing in government positions that control, create or funnel giant piles of money. …

… For the remainder of the commentary:

https://wallstreetonparade.com/2020/01/goldman-sachs-the-vampire-squids-…

Goldman Sachs: The Vampire Squid’s Alum Control Two Fed Banks, the U.S. Treasury, the European Central Bank and the Bank of England

By Pam Martens and Russ Martens: January 23, 2020 ~

Protester Wears a Swamp Creature Costume Outside Goldman Sachs Headquarters, January 17, 2017

Protester Wears a Swamp Creature Costume Outside Goldman Sachs Headquarters, January 17, 2017

The head of the Federal Reserve Bank of Dallas (Robert S. Kaplan), the head of the Federal Reserve Bank of Minneapolis (Neel Kashkari), the Secretary of the U.S. Treasury (Steve Mnuchin), the President of the European Central Bank (Mario Draghi) and the head of the Bank of England (Mark Carney) all have two things in common: they sit atop vast amounts of money and they are all alums of Goldman Sachs. In addition, the immediate past President of the Federal Reserve Bank of New York, William Dudley, which secretly sluiced over $29 trillion to bail out Wall Street banks during the financial crisis and has now opened its money spigot for trillions of dollars more, worked at Goldman Sachs for more than two decades, rising to the rank of partner and U.S. Chief Economist.

Goldman Sachs has been variously depicted as “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money,” by Matt Taibbi of Rolling Stone; or the amoral investment bank that bundled mortgages it knew would fail and sold them to their clients as good investments so that it could make millions betting against them (shorting); or the place where greed became so over-the-top that a vice president, Greg Smith, resigned on the OpEd page of the New York Times, writing that his colleagues callously talked “about ripping their clients off.” Smith’s bosses were implicated as well: “Over the last 12 months I have seen five different managing directors refer to their own clients as ‘muppets,’ ” wrote Smith.

Today, Goldman Sachs is under a criminal investigation by the U.S. Department of Justice and under a criminal indictment by Malaysia for its role in bribery and embezzlement of its sovereign wealth fund known as 1MDB.

Goldman Sachs’ notorious history has not stopped its alum from magically landing in government positions that control, create or funnel giant piles of money. Despite Donald Trump’s first run for President on a populist platform of cleaning the swamp in Washington, a full month before he even took his seat in the Oval Office, he had nominated or appointed the following individuals to his administration: Steve Mnuchin, a former 17-year veteran of Goldman Sachs and a foreclosure king during the financial crisis to be his Treasury Secretary; Steve Bannon, who had previously worked in Mergers and Acquisitions at Goldman, was to become Trump’s Senior Counselor and Chief White House Strategist.

Gary Cohn, the sitting President and Chief Operating Officer of Goldman, was picked by Trump to lead the National Economic Council and be his chief strategist in developing his economic policy. In the two years prior to the 2008 financial crash on Wall Street, Cohn was Co-President of Goldman. Cohn became a multi-millionaire from the business done in those years, earning $27.5 million in restricted stock and options just in the year 2006. As Greg Gordon of McClatchy Newspapers would report in 2009, a key part of Goldman’s business in the years before the crash operated like this: “In 2006 and 2007, Goldman Sachs Group peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it was secretly betting that a sharp drop in U.S. housing prices would send the value of those securities plummeting.”

Cohn and Bannon have since left the Trump administration. Mnuchin remains as U.S. Treasury Secretary.

Mnuchin is hardly the first Goldman Sachs alum to serve as U.S. Treasury Secretary. Robert Rubin was U.S. Treasury Secretary in the Bill Clinton presidency. Rubin was a long-tenured partner at Goldman Sachs who rose to the rank of Co-Chairman of the firm. Rubin was a key player in the repeal of the Glass-Steagall Act during the Clinton administration. Glass-Steagall had kept the U.S. financial system safe for 66 years by banning Wall Street’s trading houses from owning federally-insured, deposit-taking banks. Just nine years after the repeal, Wall Street would collapse again in a replay of 1929 – another period when Wall Street’s trading houses owned deposit-taking banks and used the funds to make fatal, speculative gambles.

Henry (Hank) Paulson served as U.S. Treasury Secretary in the George W. Bush administration and was on hand to make sure Wall Street got its massive bailout in 2008 during the worst financial crash since the Great Depression. Paulson received a massive windfall on his sale of his $480 million in Goldman Sachs’ stock when he left Goldman as CEO to become U.S. Treasury Secretary in 2006, getting out ahead of the details of Goldman’s role in the subprime debt crisis.

Sometimes the revolving door swings the other way at Goldman Sachs. E. Gerald Corrigan served as the President of the New York Fed from 1985 to 1993. One year later, Corrigan was on the payroll of Goldman Sachs as a Managing Director. He made partner two years later and worked there for the next 22 years.

After landing at Goldman, Corrigan co-chaired a secretive group that was made up of the chief risk officers of the Wall Street banks. It was called the Counterparty Risk Management Policy Group (CRMPG). The group’s plan was to periodically release erudite-sounding reports to regulators suggesting that Wall Street could police itself under a set of “Guiding Principles” in order to escape further scrutiny or regulation of its insane levels of derivatives.

Representatives from banks like Lehman Brothers, Citigroup, Bear Stearns and Merrill Lynch sat on key committees of the Group and helped to formulate the “Guiding Principles” for Wall Street. Lehman Brothers filed bankruptcy on September 15, 2008 – just five weeks after a report from the group on managing risk was released. One day before the Lehman collapse, Merrill Lynch had collapsed into the arms of Bank of America. In March of that year, Bear Stearns had flamed out spectacularly and was absorbed by JPMorgan with billions of dollars in help from the New York Fed. Also in 2008, Citigroup received the largest taxpayer bailout in U.S. history. It was later revealed by the Government Accountability Office that Citigroup had also secretly received over $2.5 trillion in cumulative, below-market, loans from the New York Fed – a significant part of which were made against collateral of junk bonds and stocks, which were in freefall at the time the New York Fed accepted them as collateral.

According to an email obtained by the Financial Crisis Inquiry Commission (FCIC) from Patrick M. Parkinson of the Federal Reserve to Steven Shafran (an official of the U.S. Treasury Department who had joined it in February 2008, also from Goldman Sachs to serve under Paulson), the Counterparty Risk Management Policy Group’s plan for dealing with a major defaulting counterparty was going to be relied upon. Shafran wrote as follows:

“Tim [Geithner, President of the New York Fed] will ask Corrigan to accelerate formation of the private-sector default management group (DMG) that was proposed by CRMPG III. Specifically, we will ask the group to advise us on: (1) the information that we would need to obtain from a troubled dealer to assess the potential impact of closeout of a dealer’s OTC derivatives books on its counterparties and on financial markets; and (2) the information that a potential acquirer of a troubled dealer’s OTC derivatives book (and possibly also related hedges) to assess the potential risks and returns from such an acquisition. The group’s advice (and what we learn in the course of inquiries at Lehman) would inform the next steps in the MIS project and ultimately what our expectations will be with respect to dealer MIS.”

The email was dated September 5, 2008 and marked “Highly Confidential.” Just 10 days later, Lehman Brothers filed bankruptcy, triggering a mass wave of panic and contagion among its derivative counterparties around the globe.

The insidious role of Wall Street banks in the takeover of key federal government posts, in the financing of federal candidates’ political campaigns, in behind-the-scenes enactment of legislation to further their disastrous money schemes, and in the effective takeover of the Presidential transition teams that pick the President’s cabinet, is a public corruption scandal of epic proportion that the front pages of U.S. newspapers have ignored for far too long. It’s up to engaged Americans to force the debate with letters to the editor and protests in front of newspaper offices across America.

ii) OTHER IMPORTANT GOLD COMMENTARIES

JAY JOHNSON’S COMEX REPORT

https://www.jsmineset.com/2020/01/24/resolute-longs-vs-the-reluctant-shorts/

 

Resolute Longs Vs. The Reluctant Shorts

Posted January 24th, 2020 at 10:01 AM (CST) by J. Johnson & filed under General Editorial.

 

Great and Wonderful Friday Morning Folks,

 

Gold is never allowed to trade higher during the contract rollovers, with April Gold now at $1,564.30, down $7.30 and close to the low at $1,562.90 with the high to beat at $1,568.90. Unlike other precious metals posts out there, when the Open Interest in the front month (February) falls, and the next month’s OI exceeds the front, we start quoting the higher OI prices (now April). March Silver’s trade is now at $17.820 down 9/10ths of a penny after the dip to $17.74 with the high to beat at $17.865. The US Dollar found more strength with its trade now at 97.640, up 15.6 points and right beside the high at 97.675 with the low at 97.450. Of course, all this happened already, before 5 am pst, the Comex open, the London close, and after the DOJ released this report last night after the hearings; Surveillance Of Carter Page Based On Insufficient Evidence, No Probable Cause.

 

Our Emerging Markets Currency Watch is leading the way today. In Venezuela, Gold is now valued at 15,623.45 Bolivar proving a gain of 42.95 overnight with Silver at 177.977 Bolivar gaining 16.98 which is far more than what was taken yesterday. In Argentina, Gold’s value under the Peso now sits at 93,859.53 showing a gain of 280.66 Peso’s with Silver gaining 10.54 with its final quote for the week at 1,069.30 Peso’s. Over in Turkey, Gold has a value of 9,292.34 Lira proving a gain of 37.89 with Silver gaining almost double yesterday’s loses at 105.876 Lira, a gain of 1.17 overnight.

 

January Silver Deliveries inside the Comex now shows a Demand Count of 103, an increase of 100 (500,000 ounces) Contracts after the final Volume of 110 was posted up on the board yesterday with a trading range between 17.755 and 17.730 with an adjusted closing price at $17.773. I had observed during yesterday’s activities the first 37 purchases (in Volume) had no posted prices to go with the trade. It was the last batch of purchases that finally posted the prices, which may be a no spread “Buy” order added in after the spreads were unwound (or wound up?). So far this morning we have a new Volume of 100 up on the board and once again, no price! Regardless, our Resolute Buyer theory is still workin in our favor, please keep it up until the Comex is drained!

 

Silver’s Overall Open Interest fell by 269 Obligations leaving the total count at 233,919, helping to prove our point that the shorts are going against a set of buyers that are continuing to make their purchases at the exchange. Is there a problem with their normal supply route? This is why we think this Resolute Long may be a manufacturer with needs, not only in paper but physicals. Gold has a brand new all-time high in paper (Thank You Harvey O)! Gold’s Open Interest now sits at 800,104 Obligations proving an additional 9,750 more short contracts had to be added when normally a drop in count during the rollover would be occurring. Not Today! Apparently, the Resolute Longs Vs. the Reluctant Shorts have entered into a new level of challenge. This should be entertaining, and maybe it will be an entertaining price jump, that follows instead of the normal hard dump.

 

Oops! Spoke too early! Gold’s trade after the Comex open is now at $1,567.70 still down $3.90 yet recovering from the earlier quote. Silver’s price jumped up 18.1 cents at $18.01, nice! So far this week, and including the Volume added during today’s write up, our Resolute Long has taken over 2 million ounces of Silver away from the Comex. Some will say it doesn’t matter, but others who have listened to Bart Chilton’s last recorded words during the Chris Marcus Interview see things differently, as we do! Bart Chilton last words are all about the manipulation of Silver and a certain criminal element.

 

Enjoy the day and the weekend! Keep that smile on your face and a positive attitude in the head no matter what! and as always …

 

Stay Strong!

JJohnson

JeremiahJohnson@cableone.net

ii) Other physical stories:

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

71671201

Spencer Platt | Getty Images

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

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

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

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

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

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

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

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

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

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

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

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

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

end

March 4.2019

Parker City News

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Kovel declined to comment.

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

-END-

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

 Section: 

9:47a ET Tuesday, March 5, 2019

Dear Friend of GATA and Gold:

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

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

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

… 

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

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

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

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

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

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

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

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

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

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

* * *

Your early 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: 6.9109/ GETTING VERY DANGEROUSLY CLOSE TO 7:1

//OFFSHORE YUAN:  6.9298   /shanghai bourse CLOSED //LUNAR HOLIDAY

 

HANG SANG CLOSED //LUNAR HOLIDAY

 

 

2. Nikkei closed UP 31.74 POINTS OR 0.13%

 

 

 

 

3. Europe stocks OPENED ALL GREEN/

 

 

 

USA dollar index UP TO 97.86/Euro FALLS TO 1.1035

3b Japan 10 year bond yield: FALLS TO. –.02/ !!!!(Japan buying 100% of bond issuance)/Japanese yen vs usa cross now at 109.62/ THIS IS TROUBLESOME AS BANK OF JAPAN IS RUNNING OUT OF BONDS TO BUY./JAPAN 10 YR YIELD IS NOW TARGETED AT .11%/JAPAN LOSING CONTROL OF THEIR BOND MARKET//CARRY TRADERS GETTING KILLED

 

3c Nikkei now JUST BELOW 17,000

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

3e WTI:: 55.39 and Brent: 61.80

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

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

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

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

3i European bond buying continues to push yields lower on all fronts in the EMU. German 10yr bund RISES TO -.30%/Italian 10 yr bond yield DOWN to 1.37% /SPAIN 10 YR BOND YIELD UP TO 0.37%…ITALIAN 10 YR BOND YIELD/GERMAN BUND: 1.57: DANGEROUS FOR THE ITALIAN BANKING SYSTEM

3j Greek 10 year bond yield FALLS TO : 1.31

3k Gold at $1558.40 silver at: 17.82   7 am est) SILVER NEXT RESISTANCE LEVEL AT $18.50

3l USA vs Russian rouble; (Russian rouble UP 16/100 in roubles/dollar) 61.76

3m oil into the 55 dollar handle for WTI and 61 handle for Brent/

3n Higher foreign deposits out of China sees huge risk of outflows and a currency depreciation. This can spell financial disaster for the rest of the world/

JAPAN ON JAN 29.2016 INITIATES NIRP. THIS MORNING THEY SIGNAL THEY MAY END NIRP. TODAY THE USA/YEN TRADES TO 109.62 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 .9712 as the Swiss Franc is still rising against most currencies. Euro vs SF is 1.0718 well above the floor set by the Swiss Finance Minister. Thomas Jordan, chief of the Swiss National Bank continues to purchase euros trying to lower value of the Swiss Franc.

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

3r the 10 Year German bund now NEGATIVE territory with the 10 year RISING to 0.30%

The bank withdrawals were causing massive hardship to the Greek bank. the Greek referendum voted overwhelming “NO”. Next step for Greece will be the recapitalization of the banks and that will be difficult.

4. USA 10 year treasury bond at 1.74% early this morning. Thirty year rate at 2.18%

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

6.  TURKISH LIRA:  UP  TO 5.9439..

S&P Futures Soar To All Time High As Traders Shrug Off Global Viral Epidemic

One day after global stocks slumped amid fears that China is losing the fight to contain the coronavirus epidemic, European shares and US Equity futures on Friday once again shrugged off worries over the viral outbreak after the World Health Organisation designated it an emergency for China but not yet for the rest of the world.

In retrospect, the market reaction is precisely why the WHO did what they did, although with almost a thousand people infected and dozens dead, it is now only a matter of time before the algos will no longer be able to ignore reality. Until then..

 

For those who missed our latest recap, here is the latest in a nutshell: the Chinese virus, which may have escaped a top biohazard lab in Wuhan just 20 miles away from the infamous food market cited as ground zero for the breakout, has killed 25 people and infected at least 800 in China, where health authorities fear the infection rate could accelerate as hundreds of millions of people travel over the week-long Lunar New Year holiday, which began on Friday.

 

“Drastic steps, such as city-wide quarantine measures, can be a double-edged sword when it comes to market impact,” ING senior rates strategist Antoine Bouvet wrote in morning note. “On the one hand they signal the authorities are taking the problem seriously and help containment, on the other hand, they help paint a dramatic picture to investors unfamiliar with dealing with this sort of risk.”

None of this was a concern to algos though, as S&P futures soared back to all time highs right around the “Hartnett” number of 3,3333 while the broad Euro STOXX 600 gained 1.1% in early trading, with indexes in Frankfurt, Paris and London all advancing similar amounts. In fact, global stocks were a sea of green even as a deadly viral pandemic is now spreading at an unknown pace.

 

Ironically, shares of German drugmaking giant Bayer gained 2.5%, driven by a report on a possible out-of-court settlement at a U.S. jury trial over allegations that its weed-killer Roundup causes cancer.

There was some more good news out of Europe, where the economy appears to have turned the corner for now with PMIs in Germany rising once again in January, beating expectations for both manufacturing and services…

 

… resulting in the strongest Mfg PMI for Europe since 2018, even as service PMIs continue to be depressed largely due to France.

 

Friday’s euphoric start supported MSCI’s world equity index, which gained 0.2%, with resilience among markets in Asia also helping. There, MSCI’s broadest index of Asia-Pacific shares ex Japan was little changed, rising 0.12% amid slow trade for the Chinese holiday with health care and industrials rising, after falling in the last session. Financial markets in mainland China, Taiwan and South Korea were closed on Friday. Markets in the region were mixed, with India’s S&P BSE Sensex Index, Singapore’s Straits Times Index rising and Thailand’s SET and Japan’s Topix Index falling. Nidec contributed most to the decline in the Topix Index.

As the scramble for risk assets returned, safe havens such as the Japanese yen and gold stepped back: the yen fell a touch to 109.57 yen against the dollar, off two-week highs of 109.26 touched on Thursday. Gold fell 0.3% to $1,558.

“Markets are waiting to see whether or not it has a material impact on growth, and that’s hard to judge at the moment,” said Neil Wilson, chief analyst at Market.com. Markets have reacted more calmly to the outbreak than was the case during the SARS epidemic in 2003, Wilson said, possibly because of greater information about its spread.

Still, underscoring the grave economic risks posed by any deepening of the crisis, the National Australia Bank estimated China’s GDP growth for the first quarter could be hit by around 1 percentage point by the outbreak of the virus. The Lunar New Year is a time of heavy consumption on travel, gifts and entertainment. “The impact on Chinese growth could be significant given the outbreak coincides with the Chinese New Year,” said Tapas Strickland, NAB’s director of economics in Sydney.

In geopolitics, President Trump said he plans to release the Middle East Peace Plan before Israel PM Netanyahu’s visit on January 28th, while he suggested Palestinians may react negatively at first to the plan but there is a lot of incentive for them to do it and noted that it is a great plan.  Additionally, the US sanctioned four companies related to Iranian petroleum and petrochemical trading in an attempt to further tighten Iranian revenue sources.

Elsewhere in FX, the Bloomberg Dollar Spot Index held on to modest weekly gains and the pound touched session high after better-than- forecast U.K. PMIs kept traders on edge as they were weighing the probability of Bank of England rate cut next week; the pound move subsequently faded and gilts reversed an earlier slump as money market pricing held around 60%. The Swiss franc and the yen eased while antipodean currencies advanced as China took further measures to limit the spread of the coronavirus.

Market Snapshot

  • S&P 500 futures up 0.2% to 3,334.00
  • STOXX Europe 600 up 1.2% to 425.17
  • German 10Y yield rose 1.5 bps to -0.293%
  • Euro down 0.08% to $1.1046
  • Spanish 10Y yield rose 1.8 bps to 0.376%
  • MXAP up 0.05% to 172.31
  • MXAPJ up 0.2% to 560.94
  • Nikkei up 0.1% to 23,827.18
  • Topix unchanged at 1,730.44
  • Hang Seng Index up 0.2% to 27,949.64
  • Shanghai Composite down 2.8% to 2,976.53
  • Sensex up 0.6% to 41,630.35
  • Australia S&P/ASX 200 up 0.04% to 7,090.54
  • Kospi down 0.9% to 2,246.13
  • Brent futures down 0.4% to $61.78/bbl
  • Gold spot down 0.1% to $1,561.26
  • U.S. Dollar Index up 0.1% to 97.83

Top Overnight News

  • China is struggling to contain rising public anger over its response to a spreading coronavirus even as it took unprecedented steps to slow the outbreak, restricting travel for 40 million people on the eve of Lunar New Year; the outbreak of the SARS-like virus has killed 25 people, all in China, while new cases have emerged in Singapore, Vietnam, Japan and South Korea
  • The euro-area economy continued to trundle along at the beginning of 2020, despite signs of a pickup in Germany. IHS Markit’s composite Purchasing Managers’ Index for the region stayed at 50.9 in January, falling short of the 51.2 median forecast of economists. There was a drag from France, where strikes hit the services sector, which offset an improvement in Germany
  • European Central Bank President Christine Lagarde said investors shouldn’t assume that current monetary policy is locked in for the foreseeable future just because officials are focused on reviewing their strategy
  • ECB Governing Council Klaas Knot says the ECB hasn’t technically hit effective lower bound on rates
  • Italian Regional elections on Sunday could weaken the government, especially after the leader of the Five Star Movement, the biggest party in the ruling coalition, quit earlier this week. A win by the populist Matteo Salvini’s League in one of the Democratic Party’s historical strongholds would raise the prospect of an early election and a potential comeback for a euroskeptic agenda
  • Concerns about the coronavirus in China has taken some steam out of Asia’s dollar bond market, which had been on a tear in recent months.
  • The European Union and a group of 16 nations that includes China and Brazil are forming an alliance to settle their trade disputes using an appeals and arbitration system at the World Trade Organization to replace temporarily a process stymied by the U.S.

Asian equity markets traded cautiously but eventually edged mild gains following the slight reprieve on Wall St where most major indices rebounded after the World Health Organization refrained from declaring the coronavirus as a Public Health Emergency of International Concern, while Nasdaq futures were also boosted after-hours due to Intel earnings which beat on top and bottom lines. Nonetheless, price action for Asia was restricted amid widespread closures for Lunar New Year’s Eve and with the number of infected and deaths from the coronavirus continuing to rise. ASX 200 (Unch.) remained afloat with outperformance in Healthcare spurred by outbreak fears after further virus cases were reported in both mainland China and abroad, while the largest weighted financials sector benefitted amid the recent pushback in rate cut forecasts and with Macquarie underpinned by reports it is nearing a deal with Bell Financial to outsource the back office of its private wealth management business. Elsewhere, Nikkei 225 (+0.1%) largely reflected the indecision of its currency and the Hang Seng (+0.2%) was contained in today’s shortened trading session as stocks remained dampened by the coronavirus fears including gambling names after Macau Chief Executive Ho said they may close all casinos and have cancelled the Lunar New Year parade after a second case of the virus was recently confirmed in the special administrative region. Finally, 10yr JGBs were subdued following yesterday’s pullback and after the BoJ minutes from the December meeting provided very little to spur demand, while the knee-jerk reaction to stronger demand at the enhanced liquidity auction was only brief.

Top Asian News

  • EU Widens Tariff Threat on Steel From China, Taiwan, Indonesia
  • India Doubles Cap for Some Foreign Debt Investment Before Budget
  • Deutsche Bank Doubles Down on Indian Shadow Lender’s Debt
  • Strikes Take a Toll on French Economy at Start of 2020

European bourses are firmer across the board [Eurostoxx 50 +1.3%] as bourses in the region welcomed the World Health Organisation’s current assessment of the virus, in which it refrained from labelling it a PHEIC. Further, bourses react to a number of earnings – with the IT sectors outperforming and bolstered by Intel’s stellar earnings after the bell, with shares seen higher by 6% pre-market. Other sectors are experiencing broad-based gains with no clear reflection of the current risk sentiment. In terms of individual movers: Bayer (+3.0%) extended on its opening gains amid reports that the Co. is edging towards a possible settlement regarding the glyphosate scandal. Carrefour (+4.3%) sits at the top of the Stoxx 600 after reporting a 3.1% YY rise in group sales in Q4. On the flip side, Ipsen (-24%) plumbed the depths after it paused dosing in Palovarotene drug trials. Meanwhile, Nokian Tyres (-8.7%) rests near the foot of the pan-European index amid a guidance downgrade, with Pirelli (-3.9%) and Continental (-2.3%) lower in sympathy

Top European News

  • Swiss Watchdog Seizes Insider Trading Profit From Ex-Bank CEO
  • Czechs Pushing Ahead With Tax on Google After France Backs Down
  • Takeaway Falls After CMA Plans Review of Just Eat Purchase
  • KKR Bids for Rest of Axel Springer, Says Co. Applies to Delist

In FX, the price action post-UK PMIs could be construed as a classic case of ‘buy the rumour/sell the fact’, but the sheer scale of Sterling’s fall from grace smacks of something else, or coincidental. Indeed, Cable collapsed from 1.3170+ to 1.3085 having rallied ahead of the IHS surveys to circa 1.3155 even though the headline reads for manufacturing, services and composite all beat consensus comfortably and the compiler contended that this this would likely keep the BoE on hold next week. However, market pricing is still close to 50-50 and the Pound’s sharp reversal came alongside a broader Dollar buying spree amidst reports that China’s coronavirus has now spread to all but just 2 of the country’s 31 regions. Usd/CNH rebounded towards weekly peaks in response and the DXY extended gains beyond 97.800.

  • EUR – The Euro has also felt the weight general Greenback demand having derived scant bullish momentum from preliminary Eurozone PMIs that were better than expected on balance, and not really reacting to more ECB rhetoric from President Lagarde plus GC members that were largely reiterations of yesterday’s post-policy meeting statements and the official strategic review launch text. Eur/Usd is now just off a marginal new sub-1.1035 low, but Eur/Gbp has rebounded through 0.8400 on the back of Sterling’s much deeper pull-back.
  • NZD/AUD/JPY/CAD/CHF – The Kiwi remains relatively firm/resilient in wake of NZ CPI data overnight that marginally surpassed forecasts, and the Aussie is also benefiting to a degree from another bank rolling back its RBA easing call to April from next month previously. Nzd/Usd is holding above 0.6600, while Aud/Usd keeps tabs on 0.6850 and the Yen pivots 109.50 after easing back from Thursday’s peaks near 109.25 and the 50 DMA. Elsewhere, the Loonie continues to regain composure after the BoC’s shift towards a looser policy stance, with Usd/Cad back down below 1.3150 and now looking towards Canadian retail sales data as the first release post-Wednesday’s meeting. Conversely, Usd/Chf has bounced further post-SNB verbal intervention to 0.9700+, but the Franc is still outperforming the Euro as the cross meanders between 1.0709-23.

In commodities, WTI and Brent futures continue to retrace some of yesterday’s losses, albeit upside in the complex remains capped by the implications of the coronavirus outbreak – which could dampen global growth and further weaken the demand side of the equation. The contracts have faded about half the upside seen from yesterday’s more constructive DoE report, albeit the data remains overshadowed by the epidemic woes. WTI front month futures meander around 55.50/bbl ahead of mild support seen at 55/bbl, whilst Brent Mar’20 futures dipped below the USD 62/bbl mark, with mild support seenat 61.50/bbl. Energy prices saw fleeting gains amid source reports that OPEC+ have reportedly discussed an output cut extension until the end of 2020, may review quotas in June, according to Tass, adding that they are unlikely to ease cuts in March as markets are still bearish. Elsewhere, spot gold has remained relatively sideways ~1560/oz and largely in tandem with the Buck, whilst copper continues its downwards trajectory as is poised for its sharpest weekly drop, with global growth concerns cited as a factor. Copper eyes 2.7/lb to the downside having tested the level during the prior session.

US Event Calendar

  • 9:45am: Markit US Manufacturing PMI, est. 52.4, prior 52.4
  • 9:45am: Markit US Services PMI, est. 53, prior 52.8
  • 9:45am: Markit US Composite PMI, prior 52.7

DB’s Jim Reid concludes the overnight wrap

So today the World Economic Forum’s annual meeting at Davos finally wraps up. I saw my kids for the first time this week last night and was a bit mortified to find that in my absence “In The Night Garden” is back on heavy rotation at home after a 2-year sabbatical at the point my daughter finally grew out of it. The twins are absolutely transfixed and apparently don’t want anything else on now. So it looks like I have another year of Igglepiggle, Makka Pakka and Upsy Daisy amongst others. For those who have no idea what I’m talking about…. I envy you.

Anyway following an eventful week in the Swiss mountains this year that saw a heavy focus on environmental issues, the joke on the fringes of Davos is that the event is a reverse indicator of what actually becomes important to financial markets and the world. However as we said in both our September climate change report ( link here) and in our one on sustainable growth last week (link here) we think a tipping point has been reached in terms of the public awareness and on its potential impact on financial markets. This issue will continue to dominate in the years ahead and this year won’t be “peak environment” at Davos.

Before the limos and private jets roll out of town from lunchtime onwards, one of the main remaining panels is taking place at at 11:30 CET on the Global Economic Outlook. A number of key speakers will feature, with the panel including ECB President Lagarde, Bank of Japan Governor Kuroda, IMF Manging Director Georgieva, US Treasury Secretary Mnuchin, German finance minister Scholz, and Zhu Min, the Chair of the National Institute of Financial Research at Tsinghua University, Beijing. So definitely one to look out for in terms of comments on central bank policy in an era of low inflation, as well as any possible comments from Mnuchin in terms of next steps for US trade policy. The US have on balance been hawkish on trade this week at Davos – perhaps putting pressure on the EU to come to their side of the table in ongoing negotiations.

Before then however, investor attention will turn this morning to the flash PMI releases, which are some of the first indicators we have of how the global economy has fared moving into the start of 2020. In terms of what to expect, the consensus is generally looking for the recent uptick in the PMIs over the last few months to continue. For Germany, where the composite PMI rose for a 3rd consecutive month in December, back into expansionary territory, the consensus is looking for another slight increase up to 50.5. Similarly for the Euro Area as a whole, the consensus is looking for another increase to 51.2 in the composite PMI, up from the trough in September where it was at 50.1. A data point that will take on added significance though is the UK, where investors have ratcheted up the chances of a rate cut next week. The PMIs are the last big UK release before that decision, so it’ll definitely be one to watch. Overnight we’ve seen Japan’s January preliminary PMIs with manufacturing printing at 49.3 (vs. 48.4 last month) and services standing at 52.1 (vs. 49.4 last month) bringing the composite to 51.1 (vs. 48.6 last month). So a good start to today’s line up of releases.

Markets have been cautious over the last 24 hours as concerns over the coronavirus grew. However we’re notably off the lows from yesterday perhaps due to news from the World Health Organization yesterday that they were not yet declaring a PHEIC (public health emergency of international concern). Nevertheless the US State Department issued a new travel advisory for China, calling for visitors to exercise increased caution in the country. As per latest reports, 25 people have now died due to the virus, up from 17 yesterday while the number of confirmed cases has risen to 835 (from 571 two days ago) with additional cases being reported in Beijing, Shanghai and Shenzhen – China’s three largest cities. Hong Kong and Beijing became the latest new cities to cancel large public gatherings and holiday activities while the Chinese government has already locked down public transport in the cities of Huanggang and Ezhou along with Wuhan, collectively home to around 20 million people. South Korea, Japan, Hong Kong, Taiwan, Singapore and Vietnam have confirmed at least one case of the new virus while Thailand has confirmed 4 cases. Elsewhere, S&P said in a report that Chinese GDP growth could fall by 1.2pp if spending on things including discretionary transport and entertainment dropped by 10% on account of people staying at home due to fear of contracting the virus, according to back of the envelope calculations. It will clearly have to get much worst first but expect these sorts of calculations to arrive if it does. As we discussed earlier in the week, the main positive is the speed of the reaction from the Chinese authorities relative to say the SARS outbreak in 2003.

Asian markets are making modest gains overnight with the Nikkei (+0.22%), Hang Seng (+0.15%) and Australia’s ASX 200 (+0.04%) all up in thin trading. Markets in China and South Korea are closed while the Hang Seng closed early on account of the Lunar New Year holidays. Elsewhere, futures on the S&P 500 are up +0.11%, the yield on 10y UST is +0.9bps and crude oil prices are c.+0.45%. As for other overnight data releases, Japan’s Dec CPI came in at +0.8% yoy (vs. +0.7% yoy expected) with core CPI and core-core CPI printing in line with consensus at +0.7% yoy and +0.9% yoy.

As discussed earlier, fears over the spread of the virus encouraged a risk-off theme for markets yesterday, though by the US close investor fears had dissipated somewhat, with the S&P 500 recovering from an intraday low of -0.60% to actually close up +0.11%. The NASDAQ recovered enough to close up +0.20% at a record high, though the Dow Jones did end the session -0.09% lower. This followed a poor session in Europe, which saw the STOXX 600 decline -0.73%, and the DAX down -0.94%. Amidst the risk-off narrative, oil’s decline continued, with Brent crude and WTI down -1.85% and -2.03% respectively. The declines mean that Brent is now down over 13% since its intra day peak at the start of the month when geo-political risk dominated.

The flight to safety supported sovereign debt, with yields declining across the US and Europe. 10yr Treasuries fell -3.7bps to 1.733%, their lowest level since early December, while the 2s10s curve flattened -2.3bps. It was a similar story in Europe, with bunds, (-4.8bps), OATs (-5.5bps) and gilts (-4.4bps) all seeing yields fall. Interestingly, the spread of Italian 10yr debt over bunds actually narrowed by -4.6bps, in spite of the political risk associated with this Sunday’s regional election in Emilia-Romagna, where Matteo Salvini’s right-wing Lega are seeking to win in what has long been a left-wing bastion. A win for Lega would likely be short-term bearish for BTPs but without a national election that could propel Salvini to the premiership it’s not clear that the bearish move could be sustained on such a result alone. Indeed, the stronger Salvini is performing nationally, the more the governing parties have an incentive to avoid triggering an early election, which could be behind some of the recent declines in the spread.

Elsewhere yesterday, the ECB meeting was pretty dull. In fact one journalist asked why they need to do press conference which sums up the immediate period of inactivity from the ECB. The main news was that they launched the review of their monetary policy strategy, with the announcement that they expect it to conclude by the end of the year. If you really want to find out more read DB’s Mark Wall’s interpretation of the meeting here but with all due respect to my good friend Mark, I suspect that this won’t be his most read ECB review piece ever. The euro was trading lower following the press conference, down -0.34% against the US dollar.

There wasn’t much in the way of data releases either yesterday, though the weekly initial jobless claims from the US came in at 211k (vs. 214k expected), up from a revised 205k the previous week. The release meant that the 4-week moving average continued to fall, down to 213.25k, its lowest level since late-September. Meanwhile, the Kansas City Fed manufacturing activity index for January also surprised to the upside, coming in at -1 (vs. -6 expected).

Turning to the day ahead now, the highlight is likely to be the aforementioned PMI releases. There’s not much data otherwise, but there will be Canada’s November retail sales numbers. From central banks, we’ll hear from a number of speakers, including ECB President Lagarde and BoJ Governor Kuroda on the Davos panel as discussed earlier. There’ll also be appearances there from the BoE’s Haskel, along with the ECB’s Villeroy and Knot. Finally, in terms of earnings, we’ll hear from American Express and NextEra Energy.

 

 

 

3A/ASIAN AFFAIRS

I)FRIDAY MORNING/ THURSDAY NIGHT: 

SHANGHAI CLOSED LUNAR HOLIDAY WEEK //Hang Sang CLOSED ..LUNAR HOLIDAY   /The Nikkei closed UP 31.74 POINTS OR 0.13%//Australia’s all ordinaires CLOSED UP .06%

/Chinese yuan (ONSHORE) closed UP  at 6.9109 /Oil UP TO 57.21 dollars per barrel for WTI and 64.13 for Brent. Stocks in Europe OPENED MIXED//  ONSHORE YUAN CLOSED UP // LAST AT 6.9109 AGAINST THE DOLLAR. OFFSHORE YUAN CLOSED UP ON THE DOLLAR AT 6.9298 TRADE TALKS STALL//YUAN LEVELS GETTING DANGEROUSLY CLOSE TO 7:1//TRUMP INITIATES A NEW 25% TARIFFS FRIDAY/MAY 10/MAJOR PROBLEMS AT HUAWEI /CFO ARRESTED  : /ONSHORE YUAN TRADING ABOVE LEVEL OF OFFSHORE YUAN/ONSHORE YUAN TRADING 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/WUHAN CITY

40 MILLION QUARANTINED, 900 INFECTED..26 OFFICIAL DEATHS SO FAR (NO DOUBT TERRIBLY UNDERSTATED

(zerohedge)

40 Million Quarantined, 900 Infected As Wuhan Hospitals Overwhelmed By Patients

Summary: Here’s a glimpse of new virus-related developments that occurred overnight.

  • Total number of confirmed cases now 900+, 26 dead.
  • China restricts travel for 40+ million people as the death toll surges.
  • Two deaths have been reported outside Wuhan.
  • Some residents displaying symptoms are being turned away from hospitals.
  • Hospitals in Wuhan make urgent pleas for help and supplies.
  • UK and US governments tell citizens to avoid outbreak zones.

* * *

Asian markets closed on Friday for the Lunar New Year holiday, which officially begins on Saturday. But in China, the Communist Party leadership are scrambling to contain the virus as 13 cities in Hubei Province are now under quarantine, meaning more than 40 million Chinese will be forced to spend the holiday week at home, the South China Morning Post reports.

Health authorities reported 66 more suspected cases overnight as a result of broader criteria for people showing symptoms, bringing the total number of suspected cases to 236 as of Friday morning in Hong Kong. Among those cases, more than 100 are now in isolation. Across China, Hong Kong and Macau, authorities have closed schools and suspended the start of the new semester. Even Disneyland Shanghai has announced plans to close for the holiday.

View image on Twitter

Xinqi Su 蘇昕琪@XinqiSu

Shanghai Disney Resort closes from Saturday till further notice.

As authorities in Beijing try to convince the world that they have the outbreak under control, researchers in the US and UK have warned that the total number of cases might be closer to 4,000, according to the New York Times.

South Korea and Japan have each confirmed their second cases, while the US worries that a second case may have been discovered in Texas. Reports that an individual is under quarantine in Sydney have also emerged, while fears about a virus case in New Jersey have already been debunked.

Though it’s slightly out of date, this map is the most up-to-date accounting of the geographic dispersion of the virus.

S&P Global Ratings has issued a statement claiming that, if the situation worsens, the outbreak could knock 1.2 percentage points off China’s GDP. Yet, as the number of cases explodes despite the travel ban, the World Health Organization is insistent that the situation hasn’t risen to the level of a global pandemic – at least not yet.

Back in Wuhan, the center of the outbreak, conditions are deteriorating rapidly. Video purportedly showing the hospital at the center of the outbreak paints a picture of widespread misery as health care workers collapse on their feet, infection rates explode even among those responsible for treating patients. Local media has also reported that there aren’t enough testing kits and medical workers available to diagnose new cases.

There have even been reports of patients showing concerning symptoms being turned away from hospitals. Nice to see that their good ol’ socialized health care system is clearly so well-prepared for such an outbreak. Desperate for money and supplies, hospitals in Wuhan have resorted to begging the government and the public for help.

In the meantime, reports claim that China’s censors are removing all frightening videos from domestic social media outlets. There have been reports of people in Shanghai and in Wuhan being herded into makeshift quarantine camps erected near hospitals around the country. In some places, authorities are scrambling to build whole new hospital wings as fast as they can. Chinese officials are scrambling to build a whole new hospital in just five days.

Sky News

@SkyNews

China is building a new 1,000-bed hospital in five days to treat victims of the new deadly coronavirus.

Get the latest on the here 👉 https://trib.al/JRoNCXY

Embedded video

Just as we expected, a shortage of facemasks that inspired hoarding and price gouging in Hong Kong has now spread across Asia, according to the Japan Times.

While they’ve disappeared from the Chinese Internet, videos showing sick or collapsing patients and health-care workers are flooding US social media.

BNO News

@BNONews

WATCH: Video shows the situation at a hospital at the epicenter of the coronavirus outbreak; it has now been removed from China’s social media platform

Embedded video

Quoth the Raven@QTRResearch

Brutal https://twitter.com/joceeeecl/status/1220407161966059520 

joyce chan ling@JoceeeeCL

footage of a Wuhan doctor having a mental breakdown#wars #WuhanCoronavirus #wuhanvirus #Wuhan

Embedded video

Quoth the Raven@QTRResearch

Not fucking good https://twitter.com/aschapire/status/1220443913573539842 

Alejo Schapire🥕

@aschapire

Replying to @aschapire

Embedded video

Especially for those who have been turned away, the mood on the streets of Wuhan is turning into full blown panic as hundreds of worried patients plead with hospitals for help. ‘Please help us’ the city’s leadership begged as it implored its neighbors for help.

Typically, LNY is the most important holiday in China and celebrations typically begin the night before, which this year is Friday night.  Chinese who work typically make it home in time to prepare a meal of fried dumplings and sticky rice cakes before hosting reunion dinners with family. At midnight, Chinese typically set off firecrackers to ring in the new year.

But this year, an anxiety-laden quiet is expected instead.

“We won’t have a new year celebration tonight. There’s no feeling for it, and no food,” a Wuhan resident named Wu Qiang, told the NYT.

Qiang added that his family is so on edge, that a simple sneeze from his son set off alarm bells at home.

“I think he’s O.K., but now even an ordinary sneeze makes you worry,” Mr. Wu said. “You start to think every cough or sneeze might be the virus.”

Another woman put it more bluntly.

“Today should be the Chinese people’s happiest day,” she said, “but this sickness has destroyed that feeling.”

Whatever impact the virus had on markets seemed to reverse after the WHO decided not to label the virus a global pandemic. But as the videos and images flooding out of China look increasingly concerning, one analyst warned that the massive response to suppress the virus could be a double-edged sword.

After the State Department issued, then retracted, a travel warning yesterday, the American Embassy in Beijing advised travelers from the US to avoid Hubei Province and the surrounding area. The notice was classified as a Level 4 advisory, the most serious travel warning issued by the US government: Other Level 4 warnings issued by the State Department cover travel to Syria, North Korea, Afghanistan, Iraq, Venezuela and Yemen, among other places.

In the US, infections have popped up in Washington State and in Texas, where a student at Texas A&M is believed to have been infected.

“Drastic steps, such as city-wide quarantine measures, can be a double-edged sword when it comes to market impact,” ING senior rates strategist Antoine Bouvet wrote in morning note. “On the one hand they signal the authorities are taking the problem seriously and help containment, on the other hand, they help paint a dramatic picture to investors unfamiliar with dealing with this sort of risk.”

END
Epoch Times/Hao//The Coronavirus
Chinese authorities have now shut down just about every part of China.  Since China is the engine for growth in the world this is not good for the global economy
Epoch Times/Hao//The Coronavirus

Chinese Authorities Shut Down Schools, Tourist Sites as Viral Pneumonia Reaches Nearly All Parts of China

Eight Chinese city governments announced on Jan. 23 that they have initiated a quarantine to curb the outbreak of a new type of viral pneumonia.

Major sightseeing locations were also shut down by local authorities to avoid mass gatherings of people as the disease, caused by a new strain of coronavirus, continues to spread.

Meanwhile, five more provinces announced their first diagnosed cases—meaning the only regions that remain free of the disease are Qinghai and Tibet.

We are now seeing second and third generation spread,” Dr. David Heymann, assistant director-general for Health Security and Environment at the World Health Organization (WHO), told CNN on Thursday.

Heymann explained that patients infected after handling animals at the fresh food market in Wuhan that is linked to the outbreak belong to the first generation. Patients who were infected through contact with an initial patient, belong to the second or third generation.

Heymann warned that now the virus can spread through contact with an infected person who is  sneezing or coughing.

Quarantined Cities

The central Chinese city of Wuhan, where the outbreak started in December, has 11 million residents. Beginning at 10 a.m. Thursday local time, the city was under lockdown, with all public transportation, including subways, ferries, and intercity buses suspending operations. The city’s airports and train stations were also closed.

A few hours later, governments of nearby cities within Hubei Province—Huanggang, Ezhou, Chibi, Zhijiang, Xiantao, Lichuan, and Qianjiang—also announced their quarantines.

Huanggang City health authorities said that all theaters, internet bars, indoor entertainment sites, and resorts will also be closed.

Also on Thursday, the Hubei provincial education bureau announced that it would postpone the start of the new school term for all primary and middle schools in the province.

Closings

Worried that the virus can easily spread in crowded places, local governments around China also closed down famous tourist sites.

In the capital Beijing, the administrators of Forbidden City announced that the museum will be closed indefinitely beginning on Jan. 25.

Near Beijing, the Tanzhe and Jietai temples; Miaofeng Mountain, a Taoist site of worship; and other tourist sites would also be closed beginning Jan. 24.

During the Lunar New Year festivities, when the entire country goes on public holiday from Jan. 24 to Jan. 30, people often go to temples to burn incense and wish for good luck in the new year.

Hangzhou is the capital city of Zhejiang Province, a scenic town and one of China’s hottest tourist destinations. On Jan. 23, the city government announced that all major sightseeing locations, temples, and museums would be closed from Jan. 24.

On the same day, the Central Academy of Fine Arts in Beijing and Shanghai University announced that due to the new disease, college entrance examinations for prospective students that were planned for February would be postponed. The schools said they will notify students when they decide on a future date.

end

CHINA/CORONAVIRUS/SIMULATION

A simulation on the coronavirus done 3 months ago predicts 65 million deaths

(zerohedge)

Coronavirus Pandemic Simulation Run 3 Months Ago Predicts 65 Million People Could Die

As of this morning, the deadly coronavirus that originated in China has killed 26 people and infected more than 900.

But according to one simulation run less than three months ago, things could get much, much worse. Less than three months ago, Eric Toner, a scientist at the Johns Hopkins Centre for Health Security, had run a simulation of a global pandemic involving the exact same type of virus, according to Business Insider.

His simulation predicted that 65 million people could die “within 18 months”. 

He commented:

 “I have thought for a long time that the most likely virus that might cause a new pandemic would be a coronavirus.”

As of now, the outbreak is not a pandemic, but it has been reported in eight different countries. Toner’s simulation said that nearly “every country in the world” would have the virus after six months.

He commented:

“We don’t yet know how contagious it is. We know that it is being spread person to person, but we don’t know to what extent. An initial first impression is that this is significantly milder than SARS. So that’s reassuring. On the other hand, it may be more transmissible than SARS, at least in the community setting.

His analysis used a fictional virus called CAPS, which would be resistant to any modern vaccine and would be deadlier than SARS. The simulation involved a virus originating in Brazil’s pig farms. The outbreak started small, with farmers coming down with symptoms, before spreading to crowded and impoverished areas.

The simulation also showed flights being cancelled and travel bookings falling by 45%, as people disseminated false information on social media. It also triggered a financial crisis around the globe, with global GDP falling 11% and stock markets falling 20% to 40%. 

No word on whether or not the simulation accounted for the modern monetary theory the Fed is essentially governing with now. 

He also claimed that the current coronavirus could have major economic impact if it the total cases hits the thousands.

He concluded:

“If we could make it so that we could have a vaccine within months rather than years or decades, that would be a game changer. But it’s not just the identification of potential vaccines. We need to think even more about how they are manufactured on a global scale and distributed and administered to people.”

“It’s part of the world we live in now. We’re in an age of epidemics.”

Of course here in the United States the CDC is assuring us that we don’t have anything to be concerned about

“We don’t want the American public to be worried about this because their risk is low,” says Anthony Fauci, head of the National Institute of Allergy and Infectious Diseases. “On the other hand, we are taking this very seriously and are dealing very closely with Chinese authorities.”

Hopefully they are correct, and hopefully this outbreak will blow over sooner rather than later.

end

CHINA/USA

Soybean prices plunge to six week lows due to lack of purchase by the Chinese

(zerohedge)

Soybean Prices Plunge To Six Week Low On Lack Of China Buys

Chicago Board of Trade soybean futures plunged to a six-week low on Friday – giving up at least half of the gains seen in the run-up to the signing of the “Phase One” Trade deal last week.

Reuters notes that uncertainty is increasing among traders whether Chinese demand can fulfill trade deal commitments.

There’s also new concern that a massive soybean harvest in Brazil could entice China to source more beans from the South American country than the U.S. — due in part because market conditions are much more favorable (i.e., prices of beans are cheaper in Brazil).

The U.S. Department of Agriculture (USDA) has yet to confirm massive agricultural purchases by China since both countries signed the trade agreement last week.

Here are some of the agriculture commitments China pledged in the trade deal:

· China Purchases to Include Oilseeds, Meat, Cereals, Cotton

· China to Buy Add’ l $19.5B U.S. Agriculture Products in 2021

· China to Buy Add’ l $12.5B U.S. Agriculture Products in 2020

As Bloomberg notes, China is committing to buying about $32 billion in additional U.S. farm products over the next two years, that’s coming on top of levels seen in 2017 (pre-trade war). Specifically, China committed to importing at least $12.5 billion more agricultural goods this year than in 2017, rising to $19.5 billion next year. It’s unclear just how this will happen without China’s destroying existing supply chains. China will also “strive” to purchase an additional $5 billion a year in farm products.

Consultancy firm Agritel told Reuters that, “Soybeans are still waiting for confirmation of purchases from China, while Brazilian harvest pressure will soon be felt.”

It appears the sizeable Brazilian harvest, expected to hit a record, could be very attractive for China considering bean prices are cheaper than the U.S. This would further complicate things between both countries, as it’s likely China could have a commitment issue and might not fulfill hard targets of the trade deal in year one.

Refinitiv data shows current bulk carriers hauling agriculture products from the U.S. to Asia is very little at the moment. At the same time, dozens of carriers are transiting to and from Brazil to Europe and Asia.

4/EUROPEAN AFFAIRS

EU/PMI

The European PMI’s seems to have stabilized but still indicates that the economy has not picked up over there

 

 

(zerohedge)

“Economy Failed To Pick Up” But European PMIs Suggest Signs Of Stabilization

European business activity failed to ignite growth momentum to the upside at the start of 2020 – despite regional equities ramping to near all-time-highs with the expectation of V-shape growth. Services, which buoyed the broader economy from tilting into a recession, are beginning to weaken as a manufacturing recession continues to drag on the overall economy.

IHS Markit’s Euro Zone Composite Flash Purchasing Managers’ Index (PMI) was unchanged at 50.9 in January, missing expectations of 51.2 – suggesting growth momentum to the upside is still missing.

“While the year may have changed, the performance of the eurozone economy was a familiar one in January. Output growth was unchanged from the modest pace seen in December, signaling that the economy failed again to record a pick-up in growth momentum,” said Andrew Harker, associate director at IHS Markit.

The service sector slowed at the start of the year, indicating the continued contraction in manufacturing production could be transmitting weakness into consumers. The manufacturing PMI has been stuck in a contraction for 12 months, printing at 47.8, a slight improvement from December’s 46.3 – a sign of stabilization but nothing to cheer about at the moment.

The Flash Eurozone Manufacturing PMI Output Index increased to 47.5 from 46.1, the highest since August.

Signs of stabilization at the start of the year are visible in Europe but far from the expectations of a V-shape recovery that regional equity markets priced in over the last four months. Confidence among European business leaders has marginally improved as central banks across the world slash interest rates 80 times over the previous 12 months and print more than $1 trillion in the last quarter – with the hopes of troughing the global economy and unleashing a V-shape recovery.

END

GERMANY/LIBYA/SYRIAN MIGRANTS

Expect more migrant movements from Libya as this country is without a doubt another proxy war.  Hillary’s removal of Gaddafi  is providing huge problems for Libya.

(zerohedge)

Merkel: Libya Becoming ‘New Syria Proxy War’ With “Enormous Floods Of Migrants”

The continuing crisis in Libya has apparently been a central topic of discussion at the World Economic Forum in Davos this week, with German Chancellor Angela Merkel warning the gathering of world business and political leaders that Libya could become the new Syria. This following the Berlin peace conference of last weekend which failed to produced a promised ceasefire.

Libya is setting up to be ground zero for the region’s next devastating proxy war, and it’s even lately seen Syrian jihadists themselves pour in via flights from Turkey. Europe is also bracing for the next potential refugee and migrant wave due to the fighting. Merkel put world leaders on notice in her comments Thursday, saying “We have to be vigilant.” She warned: “And now if we look at Libya we have to be very careful that the same doesn’t happen there again.”

“We made a first attempt and that’s only a first attempt to find a solution for Libya, before Libya itself also falls into this trap of proxy war as we have seen it in Syria,” Merkel said. “Let us all get together when those countries ask us to fight terrorism in their part of the world as we have done this with the overall coalition in Syria,” Merkel added before the Davos audience, though not mentioning the West itself had a major part to play in orchestrating a war of regime change against Assad.

 

German Chancellor Angela Merkel with Russian President Vladimir Putin and UN Secretary-General Antonio Guterres at the Berlin conference on Libya peace last Sunday, via Getty/BBC.

Though the war in Syria which has raged since 2011 is widely acknowledged to have for the most part ended with Assad and the Syrian Army victorious, in reality it’s still grinding on in places like Idlib, occupied by al-Qaeda (HTS), and the north and northeast, with Turkey and American forces occupying Syrian Kurdish areas.

Most estimates put the Syria death toll from eight years of fighting at between 400,000 and nearly 600,000 people. And the world’s most notorious terrorist organizations have arisen in that time, especially the Islamic State, which previously flooded into welcoming Syrian ‘rebel’ territories from neighboring Iraq. Some six million Syrians fled the country over the course of the conflict. In the case of Libya, after years of internecine fighting since Gaddafi’s death, the cumulative death toll is currently not more than in the tens of thousands.

Merkel referenced the potential for a new explosion of refugees on Europe’s shores due to the Libya crisis:

“We have to do more preemptively, do good for those countries in order to prevent these enormous floods of migrants,” she said.

It must be remembered that to Germany’s credit, it was perhaps the lone major European power that refused to support the US-French-NATO led military intervention which toppled Gaddafi in 2011. At the time German leaders actually argued that external intervention would destabilize the region further.

 

Max Abrahms

@MaxAbrahms

Libya could be the new Syria, Merkel warns.

There are similarities with international fighters exacerbating both conflicts.

But let’s not forget how toppling Gaddafi affected Assad.

Weapons from Libya washed into Syria & Assad concluded the West was determined to kill him.

German foreign minister at the time, Guido Westerwelle, warned a full eight years ago: “Your own instinct is to say ‘We have to do something.’ But military intervention is to take part in a civil war that could go on for a long time.” He had pledged with the full backing of Berlin: “Germany has a strong friendship with our European partners. But we won’t take part in any military operation and I will not send German troops to Libya.”

Following through on the pledge, Germany had joined Russia, China and others in abstaining on the UN vote authorizing military action in Libya, which then imposed a NATO-led ‘no fly zone’ on the country. The resulting chaos of the Gaddafi government’s collapse (with the longtime Libyan leader himself tortured and summarily executed by US-backed jihadist ‘rebels’ outside of Sirte), has led to over eight years of anarchy and renewed war, now with two main governments and opposing militaries vying for control — not to mention all oil exports have ceased within the last week.

END

SWITZERLAND/EUROPE

Negative interest rates are proving to be huge problems for European banks and their economy. We are seeing two resulting effects on this:

1 the stashing of huge amounts of cash in vaults so they will not have to pay the interest charges

2 large amounts of gold is purchased

(zerohedge)

World’s Richest Are Stashing ‘Large Sums’ Of Cash In Vaults As Swiss Bankers Rage Against Negative Rates

Finally, somebody at Davos is talking about something other than the weather…

Davos’s wealthiest denizens have reportedly been laser-focused on the issue of climate change and it’s potential impact on the global economy and markets this year – and the Trump vs. Greta drama has only stoked interest – but apparently at least one of the hundreds of reports combing the town’s ritzy resorts has found a couple of bankers willing to discuss what’s really bothering the industry.

And to our complete lack of surprise, that boogeyman is negative interest rate.

Now that the Fed has finished with its ‘midterm adjustment’, no other central bank in the developed world is going to have the courage to lift rates off the zero bound, particularly as the Continental economy careens toward a recession.

But as the rate compression continues to punish European banks, placing them at a significant disadvantage to their American peers (just look at what’s going on with Deutsche Bank), some of the wealthy customers whom the banks have leaned on to try and make up for their lost revenues are deciding to pull their money and stash it under the mattress instead.

Because at least then they won’t need to pay points on their deposits.

According to CNN, several Swiss private bankers roaming the halls of Davos have said that clients have asked to withdraw large sums of cash so they can store it themselves, in a vault or in some other type of secure facility. The trend is beginning to wear on Switzerland’s reputation as a safe and amenable locale for the world’s wealthy to stash their cash.

“A lot of people [are] thinking about what they should do, and alternatives to this,” said Adriel Jost, head of economics at Wellershoff & Partners, a consultancy based in Zurich.

Davos denizen Norman Villamin, chief investment officer for private banking at Switzerland’s UBP, said a limited number of clients have moved their cash into private storage. Some may have sold their business or a home recently, and “can’t deploy the cash all in one go,” he explained.

Private banker Rahn+Bodmer also said some clients had asked for at least some of their money back in cash.

“We tell the client, watch out – it’s your money,” said R+B partner Martin Bidermann. Many have chosen to move their money anyway.

According to CNN, Swiss banks generally try to avoid passing costs on to customers like this, and will only charge such outrageous fees when net interest margin no longer exists. For five years, Swiss banks have struggled with some of the steepest negative rates in Europe, a monetary framework designed to keep the Swiss franc from appreciating (remember the explosion of volatility that ensued when the Swiss de-pegged the franc from the euro five years ago?).

 

But banks are being charged an outrageous rate to store excess reserves at the central bank. The SNB has maintained a policy rate of -0.75% at its December meeting, while signaling that rates will likely remain on hold at least through next year. This has forced many large Swiss banks, including Credit Suisse and UBS, to charge a negative interest rate on some of their largest customer deposits.

Of course, for clients who insist on holding their money in physical cash, devising a storage plan will take some work. Clients will  need to figure out the logistics of safely storing the money. It would also be wise to ensure the cash, which will eat into the profit margin of keeping it in a vault instead of a bank.

Interestingly, CNN noted that according to SNB data, the amount of cash in circulation hasn’t climbed in recent years. That could mean one of two things: either this ‘trend piece’ is based on conversations with one or two boastful individuals, or the SNB is being deliberately obfuscating.

Either way, if large cash deposits are flowing out of the banking system, at some point, the franc should depreciate, which in turn might put the SNB in the uncomfortable position of trying to justify for continuing with its negative rates even as the currency sinks.

END

 

5. RUSSIAN AND MIDDLE EASTERN AFFAIRS

LIBYA/TURKEY

Not good:  USA backed Hafter has now threatened to target civilian planes and declares a no fly zone over Tripoli.  Turkey not happy with this

(zerohedge)

Libya’s Haftar Threatens To Target Civilian Planes, Declares Blanket ‘No Fly Zone’

With the world’s attention focused on the Coronavirus outbreak and to a lesser extent on Trump’s impeachment trial, the war in Libya just got a lot more scary in terms of the potential for mass civilian death.

Incredibly, Gen. Khalifa Haftar’s Libyan National Army (LNA) just threatened to shoot down civilian planes after days ago declaring a ‘no fly zone’ over Tripoli following increased Turkish intervention. The BBC reports the unambiguous and shocking declaration as follows:

Gen Haftar’s spokesman, Ahmad al-Mesmari, said in a statement on Wednesday that any military or civilian aircraft, regardless of its affiliation, flying over the capital will be destroyed”.

 

File image via Middle East Monitor 

In the past days Haftar has accused Turkey, which has lately openly transferred both Turkish national army troops as well as Syrian FSA mercenaries into Tripoli to fight on behalf of Prime Minister Fayez al-Sarraj, of using the Libyan capital’s only functioning international airport as a military base.

It appears the LNA is saying it will consider even commercial flights as ‘fair game’ because it’s alleging Turkey and the GNA are using civilian aviation in a ‘human shield’ capacity

Mary Fitzgerald

@MaryFitzger

BBC reporting that Haftar’s spokesman said in a statement Wednesday that “any military or civilian aircraft, regardless of its affiliation, flying over the capital will be destroyed”

Said spokesman’s utterances often dismissed as bluster by apologists. https://www.bbc.com/news/world-africa-51226094 

Libyan National Army (LNA) members, commanded by Khalifa Haftar, pose for a picture as they head out of Benghazi to reinforce the troops advancing to Tripoli, on 7 April 2019.

Libya rebel forces threaten to hit civilian planes

The UN-backed government says it has resumed flights at Mitiga airport despite the threat of attacks.

bbc.com

The BBC has further details as follows:

The GNA branded the strikes a “flagrant threat” to the safety of air traffic and a “new violation” of a ceasefire agreed earlier this month.

Gen Haftar’s forces did not immediately respond to the accusations, but did say they had shot down a Turkish drone after it took off from the airport.

Mitiga is a former military airbase which has been used by civilian planes since Tripoli’s international airport was damaged in fighting in 2014.

Pro-Haftar officials have also charged that Mitiga international airport has become a drone headquarters, and further that foreign troops are disembarking there. 

On Wednesday Mitiga airport was forced to suspend all flights for hours after it was rocked by six surface-fired missiles by LNA militia which for months has been laying siege to Tripoli. The LNA said it was targeting foreign drones (operated by Turkey) which have been used to attack its own troops.

EHA News@eha_news

‘s Haftar threatens to down civilian planes

The spokesperson of warlord Haftar, Al-Mismari, said they declared ‘no-fly zone’ over the capital Tripoli

Al-Mismari said that they would target any flying objects including passenger planes.

View image on Twitter

The AFP reported Thursday that after announcing indefinite closure of the airport, the GNA “decided to restore air traffic at Mitiga Airport” according to a statement published on Facebook. However, the status remains anything but clear.

The GNA said it plans to notify the UN Security Council of the Haftar military statement, which constitutes threat of a war crime.

Needless to say this is a major escalation which won’t help Haftar’s bid to curry favor within international bodies like the UN, which currently backs the Tripoli GNA.

Haftar has rejected recent international attempts for a ceasefire, recently at summits in Moscow and Berlin.

ANews@anewscomtr

Libya’s Mitiga Airport announced that all flights have been suspended until further notice after Haftar forces threatened to down any aircraft flying in the airspace around Tripoli, including civilian passenger planes.

Embedded video

Should his forces actually do the unthinkable and down a civilian airplane, his own backers (like the UAE, Egypt, and Russia) would be forced to cut all political and military support.

And likely more external assistance would pour in to the Tripoli GNA, alongside Turkey’s already substantial and growing military help.

END

TURKEY/SYRIA/GREECE

Turkey is badly in need for gas as they try and muscle their way into the big Israeli discovery several years ago. Now Turkey is demanding that Greece demilitarize 16 Aegean islands.  Ironically it is the Turks that are waging war and blocking ships form drilling for oil gas/oil

(zerohedge)

Turkey Demands Greece “Demilitarize” 16 Aegean Islands Amid Gas Drilling Dispute

At a moment tensions are soaring over Turkey’s expansive East Mediterranean claims, and after starting early last summer it began sending oil and gas exploration and drilling ships off Cyprus’ coast, Ankara is demanding that Greece “demilitarize” its islands in the Aegean Sea, reports Bloomberg.

The demand from Turkish Defense Minister Hulusi Akar, who formally requested Greece move to withdraw armed forces and weaponry from 16 Aegean islands near Turkey on Wednesday, is rich given it’s Turkey that’s been provocatively sending warships and military jets to accompany illegal gas drilling in the area, something lately condemned by the EU.

 

Greek islands file image (Lemnos)

“Greece, arming 16 out of 23 islands with non-military status, in violation of agreements in the Aegean sea, should act in accordance with international law,” said Defense Minister Akar, cited in state-run Anadolu Agency. “We expect Greece to act in line with international law and the agreements it has signed,” he added.

Though becoming increasingly internationally isolated over the drilling issue in EU-member Cyprus’ Exclusive Economic Zone (EEZ), Turkey has remained unmoved and at times is positively boastful about it.

Not shying away from admitting Turkish maritime claims now stretch from Cypriot waters all the way to Libya (based on a controversial recent maritime boundary ‘deal’ signed with the Tripoli Government of National Accord), Akar further had this to say according to state media:

In addition to the fight against terrorism, Turkey’s activities are ongoing in the Aegean, Eastern Mediterranean, off Cyprus, and Libya, Akar said, adding that they are carried out in accordance with international law and the territorial integrity of the countries.

Turkey is a guarantor country for the Turkish Republic of Northern Cyprus (TRNC) and is committed to fulfilling its responsibilities, he said.

“The Cyprus issue is our national issue. Whatever we need to do there, we’ve done so far and will continue to do so. We will continue to protect the rights of both our own and Cypriot brothers,” he added.

 

Turkish Defense Minister Hulusi Akar, via Anadolu Agency

Turkish President Recep Tayyip Erdogan has for the past half-year been sending warships near Cypriot waters in order to ward off foreign competition to oil and gas research, according to Cypriot officials, also seeking to bar Cypriot ships and planes from freely traversing its own European recognized waters.

But Erdogan is also bumping up against other Mediterranean countries’ plans in the region — notably Israel and Egypt as well, at a moment he’s engaged in multiple crises both domestic and related to the West  even as Turkey has long sought EU membership.

Greece’s recognized waters and Exclusive Economic Zone (above) vs. Turkey’s proposed and expansive maritime claims (blue, below), with areas it now demands Athens must “demilitarized” in red.

And the above has since extended out to here via deal signed with Tripoli’s GNA:

Turkey has in the past demanded that Cyprus formally recognize the breakaway Turkish Republic of Northern Cyprus (since 1974) and allow it to share revenues from Cypriot gas exploration.

Furthermore Turkey has laid claim to a waters extending a whopping 200 miles from its coast, brazenly asserting ownership over a swathe of the Mediterranean that even cuts into Greece’s exclusive economic zone.

END

IRAQ/USA

Trump now agrees to supply anti missile systems in Iraq after the Iranian attack a few weeks ago.  He downplays the USA injuries

(zerohedge)

US To Deploy Anti-Missile Systems In Iraq As Trump Downplays Troop Injuries As “Headaches”

President Trump was dismissive of widespread reports of eleven US soldiers sustaining head injuries as a result of the Jan.8 Iranian ballistic missile attack on Ayn al-Asad airbase in Iraq. At least eight had been airlifted to a medical facility in Germany for possible “traumatic brain injuries”, which the Pentagon and administration kept mum about in the days following.

While fielding questions at Davos on Wednesday, Trump downplayed what he likened as mere “headaches” when pressed about the issue and the administration’s evolving narrative, which initially emphasized “no US casualties” as a result of the Iranian attack.

Trump explained at the news conference his view that the injuries were “not very serious,” and added that “I heard they had headaches.” This prompted some veterans groups to reportedly say Trump is “somewhat out of touch” with the seriousness of it.

World News Tonight

@ABCWorldNews

‘THEY HAD HEADACHES’: President Trump told reporters injuries sustained by several U.S. service members airlifted from Iraq after the Iran missile attacks were “not very serious” compared to combat injuries he’s seen that have resulted in lost limbs. https://abcn.ws/3avhyxs

Embedded video

Meanwhile, the Pentagon is preparing for a ‘likely’ deployment of anti-air defense systems to Iraq in order to provide greater protection for US forces against future Iranian missile threats.

In the wake of the Iranian assault, a number of pundits and officials questioned why there weren’t anti-air defenses already in place.

According to FOX:

Fox News previously reported that the U.S. military didn’t shoot down any of Iran’s ballistic missiles because there was no missile defense system in position.

A senior Pentagon official told Fox News that they believed an Iranian missile attack was “unlikely.” U.S. officials say a Patriot air defense system will now likely be deployed.

There is a worldwide shortage of Patriots. Some units are currently bogged down protecting bases in Saudi Arabia.

Patriots are also currently deployed in defense of US assets, especially expensive military aircraft, around bases in Kuwait, Qatar, and the UAE.

 

US Army Patriot missile battery file image.

These defensive systems could be placed in Iraq at a time when the entire question of a future US military presence there is in doubt, given Iraq’s parliament is moving to expel the Americans.

Trump recently threatened sanctions on its uneasy ally should Baghdad go through with it. Washington fears ‘Iranian expansion’ and entrenchment should it bring the troops home.

END
IRAN/USA INJURED USA SOLDIERS
It seems that 34 USA soldiers suffered traumatic brain injuries from the Iranian attack.  Seventeen are still in hospital
(zerohedge)

Pentagon Now Says 34 US Soldiers Suffered Traumatic Brain Injuries In Iran Attack

In the latest major revelation contradicting the White House and Pentagon significantly downplayed casualty count regarding the Jan.8 Iranian ballistic missile attack on Ayn al-Asad airbase in Iraq, The New York Times is reporting that a total of 34 American soldiers have been diagnosed with serious head injuries ranging from concussion to traumatic brain injury.

Pentagon spokesman Jonathan Hoffman confirmed the much higher number Friday, after only a day ago the official toll stood at eleven after an initial Jan.17 statement, with at least eight of those which were considered serious enough to transport to a hospital in Germany. Hoffman said up to half of the 34 have already returned to their military duties, however, and 17 are still under medical observation.

 

US soldier stands at site of Iranian bombing, in Ayn al-Asad air base, via the AP.

While previously fielding questions at Davos on Wednesday, Trump downplayed what he likened as mere “headaches” when pressed about the issue and the administration’s evolving narrative, which initially emphasized “no US casualties” as a result of the Iranian attack. Trump explained at the news conference his view that the injuries were “not very serious,” and added that “I heard they had headaches.” This prompted some veterans groups to reportedly say Trump is “somewhat out of touch” with the seriousness of it.

 

Addressing what’s clearly been an evolving narrative which actually began with the administration claiming “no casualties” immediately following the rare Iranian attack which was in response to the Soleimani killing, the Pentagon spokesman said: “The goal is to be as transparent, accurate and to provide the American people and our service members with the best information about the tremendous sacrifices our war fighters make.”

He told reporters further on Friday: “This is a snapshot in time, what he wanted to make sure is that you’re provided with the most accurate numbers.”

World News Tonight

@ABCWorldNews

‘THEY HAD HEADACHES’: President Trump told reporters injuries sustained by several U.S. service members airlifted from Iraq after the Iran missile attacks were “not very serious” compared to combat injuries he’s seen that have resulted in lost limbs. https://abcn.ws/3avhyxs 

Embedded video

But certainly reporters and the American public will be scratching their heads on this claim the DoD desires to provide “the most accurate numbers”.

The casualty assessment has literally gone from zero to 11 to a few “headaches” – and to 34 with traumatic brain injury

END

6.Global Issues

 

7. OIL ISSUES

 

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 1.11035 DOWN .0020 REACTING TO MERKEL’S FAILED COALITION/ REACTING TO +GERMAN ELECTION WHERE ALT RIGHT PARTY ENTERS THE BUNDESTAG/ huge Deutsche bank problems ///ITALIAN CHAOS /AND NOW ECB TAPERING BOND PURCHASES/JAPAN TAPERING BOND PURCHASES /USA RISING INTEREST RATES /FLOODING/EUROPE BOURSES /ALL GREEN

 

 

USA/JAPAN YEN 109.62 UP 0.049 (Abe’s new negative interest rate (NIRP), a total DISASTER/NOW TARGETS INTEREST RATE AT .11% AS IT WILL BUY UNLIMITED BONDS TO GETS TO THAT LEVEL…

GBP/USA 1.3089   DOWN   0.0029  (Brexit March 29/ 2019/ARTICLE 50 SIGNED/BREXIT FEES WILL BE CAPPED/BREXIT EXTENDED TO JAN 31/2020//

USA/CAN 1.3136 UP .0009 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 FELL BY 20 basis points, trading now ABOVE the important 1.08 level FALLING to 1.1035 Last night Shanghai COMPOSITE CLOSED DOWN 84.23 POINTS OR 2.75%  (THURSDAY’S CLOSE..NOW START OF LUNAR WEEK HOLIDAY)

 

//Hang Sang CLOSED UP 40.52 POINTS OR 0.15%

/AUSTRALIA CLOSED UP 0,06%// EUROPEAN BOURSES ALL MIXED

 

Trading from Europe and Asia

EUROPEAN BOURSES ALL GREEN 

 

 

2/ CHINESE BOURSES / :Hang Sang CLOSED UP 40.52 POINTS OR 0.15%

 

 

/SHANGHAI CLOSED DOWN 84.23 POINTS OR 2.75%//THURSDAY CLOSE AND NOW START OF LUNAR WEEK HOLIDAY

 

Australia BOURSE CLOSED UP. 06% 

 

 

Nikkei (Japan) CLOSED UP 31.74  POINTS OR 0.13%

 

 

 

INDIA’S SENSEX  IN THE GREEN

Gold very early morning trading: 1558.95

silver:$17.82-

Early FRIDAY morning USA 10 year bond yield: 1.74% !!! UP 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 2.18 UP 0  IN BASIS POINTS from THURSDAY night.

USA dollar index early FRIDAY morning: 97.86 UP 13 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: 0.38% DOWN 3 in basis point(s) yield from YESTERDAY/

JAPANESE BOND YIELD: -.02%  DOWN 1   BASIS POINTS from YESTERDAY/JAPAN losing control of its yield curve/

SPANISH 10 YR BOND YIELD: 0.35%//DOWN 1 in basis point yield from yesterday.

ITALIAN 10 YR BOND YIELD:1,23 DOWN 2 points in basis points yield from yesterday./

 

 

the Italian 10 yr bond yield is trading 87 p4ints higher than Spain.

 

GERMAN 10 YR BOND YIELD: FALLS TO –.34% IN BASIS POINTS ON THE DAY//

THE IMPORTANT SPREAD BETWEEN ITALIAN 10 YR BOND AND GERMAN 10 YEAR BOND IS 1.57% 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 1.1025  DOWN     .0025 or 25 basis points

USA/Japan: 109.31 DOWN .251 OR YEN UP 26  basis points/

Great Britain/USA 1.3074 DOWN .0045 POUND DOWN 45  BASIS POINTS)

Canadian dollar DOWN 21 basis points to 1.3148

 

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

 

The USA/Yuan,CNY: AT 6.9107    ON SHORE  (DOWN)..GETTING DANGEROUS

THE USA/YUAN OFFSHORE:  6.9365  (YUAN DOWN)..GETTING REALLY DANGEROUS

TURKISH LIRA:  5.9413 EXTREMELY DANGEROUS LEVEL/DEATH WISH.

the 10 yr Japanese bond yield closed at -.02%

 

Your closing 10 yr US bond yield DOWN 4 IN basis points from THURSDAY at 1.69 % //trading well ABOVE the resistance level of 2.27-2.32%) very problematic USA 30 yr bond yield: 2.13 DOWN 5 in basis points on the day

Your closing USA dollar index, 97.92 UP 22  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 42.80  1.03%

German Dax :  CLOSED UP 188.26 POINTS OR 1.44%

 

Paris Cac CLOSED UP 52.47 POINTS 0.88%

Spain IBEX CLOSED UP 43.50 POINTS or 0.46%

Italian MIB: CLOSED UP 262.08 POINTS OR 1.11%

 

 

 

 

 

 

 

 

WTI Oil price; 54.12 12:00  PM  EST

Brent Oil: 60.44 12:00 EST

USA /RUSSIAN /   RUBLE FALLS:    62.16  THE CROSS HIGHER BY 0.26 RUBLES/DOLLAR (RUBLE LOWER BY 26 BASIS PTS)

 

TODAY THE GERMAN YIELD FALLS  TO –.24 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 :  54.33//

 

 

BRENT :  60.81

USA 10 YR BOND YIELD: … 1.69..down 3 basis pts…

 

 

 

USA 30 YR BOND YIELD: 2.13..down 4 basis pts..

 

 

 

 

 

EURO/USA 1.1129 ( DOWN 27   BASIS POINTS)

USA/JAPANESE YEN:109.25 DOWN .313 (YEN UP 31 BASIS POINTS/..

 

 

USA DOLLAR INDEX: 97.86 UP 17 cent(s)/

The British pound at 4 pm   Britain Pound/USA:1.3144 UP 16  POINTS

 

the Turkish lira close: 5.9415

 

 

the Russian rouble 62.07   DOWN 0.14 Roubles against the uSA dollar.( DOWN 14 BASIS POINTS)

Canadian dollar:  1.3144 DOWN 16 BASIS pts

USA/CHINESE YUAN (CNY) :  6.9109  (ONSHORE)/

 

 

USA/CHINESE YUAN(CNH): 6.9298 (OFFSHORE)

 

German 10 yr bond yield at 5 pm: ,-0.34%

 

The Dow closed DOWN 170.36 POINTS OR 0.58%

 

NASDAQ closed DOWN 87.57 POINTS OR 0.27%

 


VOLATILITY INDEX:  14.54 CLOSED UP 1.52

LIBOR 3 MONTH DURATION: 1.794%//libor dropping like a stone

 

USA trading today in Graph Form

Corona-Contagion Crashes Commodity/Stock Markets Worldwide, Bonds & Bullion Bid

As @GreekFire32 correctly mocked:

“Of all the fundamental catalysts like sliding economic growth, inflation, earnings, cash flow… the bears had to wait for a virus from humans eating bat soup to get a 1% sell-off “

A black bat or black cat spoiled the party…

Doesn’t look so bad…

“probably nothing…”

For a sense of the damage (or perhaps more of the calm we have encountered in the last few months)…

  • Shanghai Comp’s worst week in 8 months
  • S&P 500’s worst week in 5 months
  • “Most Shorted” stocks had their biggest weekly drop in 4 months
  • France’s CAC 40 worst week in almost 4 months
  • VIX’s biggest weekly spike in almost 6 months
  • HY Bond Prices worst week in almost 5 months
  • Treasury yields biggest weekly drop in 4 months
  • Yield curve’s biggest weekly flattening in 2 months
  • USD’s best week in 2 months
  • Yuan’s worst week in 4 months
  • Copper’s worst week in over 5 years
  • Oil’s biggest weekly drop in 8 months
  • Gold’s 6th weekly rise in last 7 weeks

China ended notably weaker this week (China closed on Friday for lunar new year celebration)…

Source: Bloomberg

Mixed picture in Europe this week with Germany clinging to gains while France and Spain tumbled…

Source: Bloomberg

US Equity majors were all down on the week, unable to hold the hope-filled gains…Nasdaq ended its 6-weekly gain in a row (and AAPL broke its 9 week streak)

Source: Bloomberg

Two big buy programs in the last hour did their best to lift stocks…

Source: Bloomberg

Flu-makers shot higher on the week…

Source: Bloomberg

Boeing rescued The Dow from its worst levels after the machines read FAA comments as extremely positive…

Source: Bloomberg

Managing to magically lift The Dow back above the crucial 29k level (but couldn’t hold it)…

So to clarify – The Dow rebounds on hopes that a plane which is designed by clowns, who are in turn supervised by monkeys, will fly again.

And the S&P desperately tried to get back to 3300 (but couldn’t hold it)…

Where ‘peak’ gamma is…

“Most Shorted” stocks plunged this week

Source: Bloomberg

Defensive dominated the week’s price action, despite every effort to levitate cyclicals…

Source: Bloomberg

As Dow Earnings expectations plunge…

Source: Bloomberg

VIX touched 16.00 intraday before fading…

The divergence between stocks and bond yields failed to narrow as while stocks fell, bond yields plunged…

Source: Bloomberg

Meanwhile, credit markets are getting clubbed like a baby seal…

Source: Bloomberg

Overall, an ugly week for credit and equity protection markets…

Source: Bloomberg

Treasury yields plunged their most in 4 months this week…

Source: Bloomberg

30Y Yields broke to its lowest yield since Oct 10th…

Source: Bloomberg

Yield curve flattened dramatically this week…

Source: Bloomberg

The Dollar surged to key December resistance, up 3 weeks in a row…

Source: Bloomberg

Yuan plunged on the week…

Source: Bloomberg

A big bounce back in crypto today rescued the week but there was red across the board still…

Source: Bloomberg

Commodities were wildly mixed this week with PMs bid as copper and crude crashed…

Source: Bloomberg

WTI crude futs tumbled to a $53 handle intraday today, lowest in 3 months…

And as black gold plunged, the yellow metal spiked…

This was Copper’s worst week since Nov 2014…

Source: Bloomberg

Finally, it seems the markets hate Liz Warren and don’t think Bernie stands a chance…

Source: Bloomberg

And, as a gentle reminder, everyone and their pet (edible) bat is all-in

Here’s to the weekend…

end

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

MARKET TRADING//USA

a)Market trading/THIS MORNING/USA

Stocks Drop, Gold Pops After CDC Confirms 2nd US CoV Case, Monitoring 63 Others

The CDC has confirmed the second case of Coronavirus in a Chicago woman in her 60s who recently traveled to Wuhan. She has been quarantined, and investigators are looking to track down anyone she may have had contact with.

The woman returned to the US on Jan. 15, but was asymptomatic so she evaded any monitoring. CDC said she didn’t have much contact with the public since her return.

Marissa Parra

@MarParNews

: confirmed case of Coronavirus in Chicago

Illinois Dept of Health says it’s travel related

Invididual had traveled to Wuhan@cbschicago https://twitter.com/marparnews/status/1220144132615786496 

Marissa Parra

@MarParNews

📸⬇️ RIGHT NOW: CDC is handing out Coronavirus awareness flyers to select passengers at O’Hare airport

🌡 STARTING FRIDAY: Thermometers and medical equipment will be used to test passengers traveling to Chicago from China@cbschicago https://twitter.com/marparnews/status/1220091052356403202 

Other cases have been rumored in Texas and at LAX, but apparently none have been confirmed. The first case emerged earlier this week in Washington State.

Meanwhile, the CDC revealed that the agency is monitoring 63 other possible cases in the US. While the agency says the risk to the American public is still ‘low’, the situation is “evolving rapidly.” They expect to see more ‘travel-related’ cases, as well as some cases passed between humans in the US. The patients are spread across 22 states, and so far 11 of the cases have tested negative.

Stocks are really sliding now, with the S&P and Nasdaq seeing the biggest declines…

…while the Dow dipped but has been bolstered by Intel:

Gold has exploded to three-week highs.

And 30Y yields have hit a three-month low.

Only the Nasdaq is still higher for the week…but just barely.

So much for ‘contained’…hopefully we’ll hear more soon from the WHO…though we suspect they will stay silent until after 4 pm.

END

b)MARKET TRADING/USA/AFTERNOON

ii)Market data/USA

Another sign that the USA economy is stumbling PMI’s contract badly for the 2nd straight month

(zerohedge)

“Not Out Of The Woods Yet” – US Manufacturing PMI Stumbles For 2nd Straight Month

Following the better-than-expected (but still in contraction) European PMIs, Markit is expected to show a continued rebound in both Manufacturing and Services for US markets in preliminary January data.

However, while Services did extend its rebound (from 52.8 to 53.2), Manufacturing PMI stumbled for the second month in a row (down from 52.4 to 51.7)…

Source: Bloomberg

As the chart above shows, the last time Manufacturing tumbled against gains in Services, it was the latter than collapsed down and not the former that caught up.

Adjusted for seasonal factors, the IHS Markit Flash U.S. Composite PMI Output Index posted 53.1 in January, up from 52.7 in December, to indicate the quickest rise in output since last March.

Commenting on the flash PMI data, Siân Jones, Economist at IHS Markit, said:

“The recovery of growth momentum across the U.S. private sector continued to quicken at the start of 2020, with overall output rising at the sharpest pace since last March.

Nonetheless, the underlying data highlights a manufacturing sector that is not out of the woods yet, with goods producers seeing only modest gains in output and new orders. Service providers also registered a slower upturn in new business, which fed through to softer increases in output charges as part of efforts to attract new customers.

On a positive note, private sector firms increased their workforce numbers at a faster rate, with some also expressing frustration at a lack of available candidates to fill vacancies. Job creation reflected stronger optimism regarding future output. Although firms remain wary of the potential for headwinds through 2020, business confidence creeped higher for the second month running.

“Further signs of historically soft price pressures will come as no surprise to the FOMC, who meet next week, adding to expectations of a hold in the policy rate. Muted increases in costs and output charges reportedly stemmed from both producers and suppliers increasing their efforts to boost sales.

END

iii) Important USA Economic Stories

The Fed/Repo/QE

We warned you that this will happen.  The Fed has been purchasing treasury bill with reckless abandon. Now they are distorting the market and BMO predicts that they will have to resort to purchases of treasury bonds with short duration.  They also predict that the Fed will announce tapering but that will also end abruptly as the markets need liquidity badly

(zerohedge)

The Debate Is Over: In Two Months “Not QE” Officially Becomes QE 4

While Neel Kashkari may be theatrically appealing to the intellect of “QE conspiracists” – which as of today in addition to Robert Kaplan, Larry Kudlow and James Gorman also includes as per the chart below Bank of America, in addition to any other person with an even modest understanding of monetary policy…

… to explain to him how the Fed is moving prices with its $60BN in monthly purchases of T-Bills (something we did last week), a key development is coming that will make all such debates moot: in a few months the Fed’s “Not QE” will officially become “QE 4.”

The reason: following an update to BMO’s bill supply forecasts, the bank’s rates strategist Jon Hill sees a great likelihood that the Fed will need to reduce its “demand burden” on the bill market, i.e., there won’t be enough Bills available for the Fed to monetize without it distorting the market, and will extend the purchase program to include short coupons in the process officially ending any debate whether the Fed’s manipulation of the market under the guise of saving repo, is “Not QE”, because it is limited to Bills and thus no duration is taken out of the market, or is “QE 4”, in which the Fed purchases at least some coupon securities in addition to Bills.

 

Once the Fed makes the shift, BMO expects the monthly sizes of $60 bn, or $30 bn post assumed taper, would be composed of both bills and short coupons, “helping to reduce expected pressure in the bill market. ”

At this point, Hill puts 75% odds on this change occurring by mid-March, meaning that any farcical “debate” whether the Fed’s injection of anywhere between $60 and $100BN in liquidity each month into the equity market, is or isn’t QE, will very soon be mercifully over.

What if BMO is wrong, and the Fed does not adjust purchases to include short coups? In that case, the Canadian banks foresees a $321 billion reduction in bill supply in Q2 2020

… which would be the largest quarterly drop in privately available outstandings on record.

Furthermore, Hill predicts that that the Treasury’s introduction of 20-year supply would also marginally contribute to reduced Q2 bill issuance.

This squeeze is driven more by the Fed’s purchase program, rather than a sudden shift in the Treasury Department’s cash needs. Indeed, a look at borrowing needs less net coupon issuance shows Q2 2020 will be -$236 bn, essentially in line with -$229 bn in Q2 2019. In other words, what makes Q2 2020 different is the full consequences of the Fed’s footprint in the bill market.

It is also worth noting that that these figures reflect BMO’s assumption that the Fed tapers their “reserve management program” (and soon, QE-4) from $60 billion per month to $30 billion per month in mid-March, so if the tapering does not occur, the squeeze will be that much more.

Now, “why doesn’t the Fed stop their Bill (and soon Note) Purchases earlier?” one may ask? The short answer, according to Hill, is that the system still requires reserve injections – after all anything less and the equity market will crack – and the Fed wants to gradually reduce its repo footprint. While repo take-up from the Fed has fallen by $80 bn since year-end, there remains nearly $200 bn in demand. Since the beginning of December, the combined reserve management purchases plus repo injections has been approximately $400 bn.

As a result, in BMO’s baseline scenario, the bill purchase program will total $390BN by the time it is unwound (before it returns again, of course). This will continue to displace demand for Fed repo operations, but not at a sufficient pace as to allow for a full stop of the reserve management purchases before Q2. Instead, and as we predicted last October, the most prudent policy adjustment per Hill, appears to be expanding the program to include short coupons in the next couple months

 

One key question which may be asked by all those who still don’t get the nuance of the debate among the “Not QE” and “QE” crowd, is “what’s the hesitation for the Fed buying coupons in addition to bills?”

The answer is simple: by focusing only on T-bill purchases, the Fed was given a semantic loophole, and was able to fall back on Powell’s October 2019 vow that “in no sense is this QE”, since it’s easier to make the argument because it does not directly drive long-end yields down (of course, as we explained the mere continued injection of up to $100BN in liquidity each month is all the market cares about). This would also be the case if they only purchased coupons maturing in one year
or less.

The second reason why the Fed is reluctant to expand purchases to include short coupons is the way they have signaled their reaction function on the topic. According to BMO, “in the current framework, it appears that they would need to actually observe liquidity impairment in bills before tweaking the program details.” One reason not mentioned by BMO is that with the Fed officially set to transition to QE, it will no longer be possible for Powell to evade a discussion over the new round of monetary easing – i.e., QE4 – and the cascade of question why this is happening when unemployment is 3.5%,  when wage growth is 3.0%, and when the US economy is nowhere near a crisis like the one that launched the original QE. Unless, of course, the US is very near a crisis, and the Fed knows much more than it is letting on…

The last question: “If the Fed pivoted to short coupons, when would they announce the change?”

In terms of timing, the focus on disconnecting the reserve management purchases from true monetary policy makes it unlikely (though not impossible) that the announcement would come at an FOMC meeting. Instead, our focus will be on the upcoming operational announcements – the next one is February 13 at 3:00 PM ET.
If the FOMC wanted to signal that a pivot into short coupons was imminent, we see two primary avenues: Powell’s press conference on January 29 (he’s sure to receive a question or two on the topic) and the January meeting Minutes
which will be released on February 19.

END
As promised, Wolf Richter outlines how the USA shale industry is now witnessing a huge jump in bankruptcies
(Wolf Richter/WolfStreet)

U.S. Shale Patch Sees Huge Jump In Bankruptcies

Authored by Wolf Richter via WolfStreet.com,

Texas at the epicenter. We’re witnessing the destruction of money that loosey-goosey monetary policies encouraged…

Following the sharp re-drop in oil and natural gas prices in late 2018, bankruptcy filings in the US by already weakened exploration and production companies , oilfield services companies, and “midstream” companies (they gather, transport, process, or store oil and natural gas) jumped by 51% in 2019, to 65 filings, according to data compiled by law firm Haynes and Boone. This brought the total of the Great American Shale Oil & Gas Bust since 2015 in these three sectors to 402 bankruptcy filings.

 

The debt involved in these bankruptcies in 2019 doubled from 2018 to $35 billion. This pushed the total debt listed in these bankruptcy filings since 2015 to $207 billion. The chart below shows the cumulative total debt involved in these bankruptcies since 2015.

But this does not include the much larger losses suffered by shareholders that get mostly wiped out in the years before the bankruptcy as the shares descend into worthlessness, and that then may get finished off in bankruptcy court.

The banks, which generally had the best collateral, took the smallest losses; bondholders took bigger losses, with unsecured bondholders taking the biggest losses. Some of them lost most of their investment; others got high-and-tight haircuts; others held debt that was converted to equity in the restructured companies, some of which soon became worthless again when the company filed for bankruptcy a second time. The old shareholders took the biggest losses.

The Great American Fracking Bust started in mid-2014, when the price of WTI dropped from over $100 a barrel to below $30 a barrel by early 2016. Then the price began to recover, going over $70 a barrel in September and October 2018. But then it began to re-plunge. By the end of 2018, WTI had dropped to $47 a barrel.

Two major geopolitical events in the Middle East – the attack on Saudi Aramco’s oil facilities last September and the US assassination of Iranian Major General Qasem Soleimani – that would have shaken up oil markets before, only caused brief ripples, quickly squashed by the onslaught of surging US production. At the moment, WTI trades at $56.08 per barrel, which is still below where the shale oil industry can survive long-term:

And 2020 is starting out terrible for natural gas producers. The price of natural gas has plunged to $1.90 per million Btu at the moment, a dreadfully low price where no one can make any money. Producers in shale fields that produce mostly gas, such as the Marcellus, are in deeper trouble still, because oil, even at these prices, would be a lot better than just natural gas.

Producing areas with constrained takeaway capacity (it takes a lot longer to build pipelines than to ramp up production) are subject to local prices, which can be lower still. In some areas, such as the Permian in Texas and New Mexico, the most prolific oil field in the US, where natural gas is a byproduct of oil production, limited takeaway capacity has caused local prices to collapse, and flaring to surge.

The chart shows the spot price for delivery at the Henry Hub:

Texas at the epicenter.

The most affected state, in terms of the number of bankruptcy filings, is Texas, the largest oil producer in the US. Since 2015, the state had 207 oil-and-gas bankruptcy filings, of the 402 total US filings. In 2019, Texas had 30 of the 65 US filings.

Delaware, obviously, is not into oil and gas production, but into coddling corporations, and many companies are incorporated in Delaware, including some oil-and-gas companies in Texas. When they file for bankruptcy, they do so in Delaware. These are the eight states with the most oil-and-gas bankruptcy filings since 2015:

Bankruptcy filings are triggered when the E&P companies no longer get funding from Wall Street or from their banks to continue with their perennially cash-flow negative operations and service their debts. And this is what is happening now. Wall Street and the banks have started to demand that these companies stick to an entirely new mantra in the fracking business: “live within cash flow.”

When E&P companies run short on funding, they cut back on drilling activity which puts the squeeze on oilfield services companies that provide products and services to the oilfield, including drilling and completing wells. And then these OFS companies go bankrupt.

 

This is what happened to oilfield-services giant Weatherford which filed for a prepackaged bankruptcy last July. Back in 2014, before the oil bust, it had 67,000 employees; by July, it was down to about 26,000. The reorganization plan allowed Weatherford to shed $5.8 billion of its $7.6 billion in long-term debt. Old shareholders got wiped out. The creditors got 99% of the restructured company’s new shares.

In its report on the OFS bankruptcies, Haynes and Boone cited this pressure from Wall Street and its cascading effect, which Weatherford had pointed out in its bankruptcy filing:

We note that Weatherford, in its July 2019 filing, attributed its insolvency in part to reduced drilling activity by producers who have also been dramatically affected by the commodity price slump since 2015. Investors’ pressure on producers to “live within cash flow” is further reducing demand for OFS services and supplies leaving the OFS sector with little near term hope for a turnaround in prospects.

What this sector needs are much higher prices for oil and natural gas. But that cannot happen while production continues to surge. A large-scale culling in the sector – a lot more bankruptcies – could reduce production, and support higher prices.

But as soon as prices rise above certain levels, with investors still chasing yield at every twist and turn, the flood of new money will wash over the sector again, with investors having already forgotten by then that shale oil and gas was where money went to die every time. And this new money will cause a new surge in production, which will collapse prices once again. It’s a cycle that the shale industry has a hard time getting out of, under the current loosey-goosey monetary conditions.

*  *  *

Enjoy reading WOLF STREET and want to support it? Using ad blockers – I totally get why – but want to support the site? You can donate. I appreciate it immensely.

end

Boeing/more troubles

Now we have reports that the 787 will endure production cuts

(zerohedge)

Boeing Tumbles After Reports Of Further 787 Production Cuts

After an exuberant opening – because coronavirus is ‘contained’ or some such bullshit – Boeing shares have tumbled back into the red after reports that the company is considering another cut to production of its marquee 787 Dreamliner.

Bloomberg reports, citing people familiar with the matter, that executives are studying whether to trim monthly output by two planes to 10 a month from a pace that was already reduced in October.

“We maintain a disciplined rate-management process, taking into account a host of risks and opportunities,” Boeing spokesman Chaz Bickers said when asked about a possible output cut for the Dreamliner.

“We will continue to assess the demand environment and make adjustments as appropriate in the future.”

 

As Bloomberg notes, slowing output of the carbon-composite Dreamliner, with a list price that starts at about $250 million, would crimp a critical source of cash for Boeing as it attempts to recover from a global grounding of the 737 Max following two fatal crashes. The 787 accounted for about 40% of Boeing’s jetliner deliveries in 2019 as the company was barred most of the year from shipping the best-selling Max.

And don’t hold your breath for any improvement post-trade-deal..

 

In October, Boeing executives cited an extended order drought from China when they said the company would slow production to 12 Dreamliners a month from its peak rate of 14.

As goes Boeing, so goes the US equity market?

end

DISCOVER/CREDIT CARD

Despite earnings per share gain, the stock crashes as the balance sheet indicates the highest Q4 charge off rate this decade

(zerohedge)

Discover Crashes Most Since The Financial Crisis On Highest Q4 Charge-off Rate This Decade

One of America’s most popular credit card companies, Discover, is having a bad day. In fact, dropping as much as 11% today after announcing Q4 earnings, DFS has suffered its biggest one day drop since the financial crisis, even greater than the 9% drop recorded on the day the US was downgraded in August 2011.

What was behind this tremendous drop? After all, Discover not only did not miss earnings, it reports Q4 EPS of $2.25 that beat Wall Street consensus estimates of 2.24 and were above the 2.03 EPS reported a year ago. No, the reason for the plunge was not to be found on the income statement, but rather the balance sheet, where Discover reported that its Q4 credit card net principal charge off rate had unexpectedly jumped from 3.32% in Q3 to 3.41% in Q4, and 18bps higher than Q4 2018. In fact, as shown in the chart below, while not quite the highest charge off rate (which follows a seasonal pattern) in the past decade, this was the highest Q4 charge off going back all the way to financial crisis (specifically 2011 when the company’s charge off rate plunged from over 5% to the high 2%s).

And while the sellside was quick to points out what was painfully obvious in retrospect, and rushed to downgrade the stock after the fact, as follows…

  • Evercore ISI analyst John Pancari cut the recommendation on Discover Financial Services to underperform from inline.  PT set to $75, implies a 13% decrease from last price. Discover Financial average PT is $92.89. Targets range from $75 to $105
  • Piper Sandler cut the recommendation on Discover Financial Services to neutral from overweight. PT set to $86, implies a 0.2% increase from last price. Discover Financial average PT is $90.63. Targets range from $75 to $105

… the bigger question once goes to the strength of the driving force behind the US economy, namely the US consumer, because if Discover’s charge off data is indicative of the deterioration that is taking place below the surface, the US consumer is already tapped out and that’s with stocks at all time high and unemployment at all time low, both on the back of the Fed’s unprecedented interventions in the economy. What happens when the Fed stops? (Incidentally, that’s a rhetorical question: the Fed can no longer afford to stop and the best it can do is go down with the ship.)

END

iv) Swamp commentaries)

Another big story:  The surveillance on Carter Page according to a new report by the FISA court was based on insufficient evidence and had no probable cause.

In other words the data received by the surveillance is now tainted having been received from a “poison tree””

(zerohedge)

DOJ: Surveillance Of Carter Page Based On Insufficient Evidence, No Probable Cause

The Department of Justice has concluded that the Obama-era FBI should have discontinued its surveillance of Trump campaign adviser Carter Page far earlier than they did, and that the Foreign Intelligence Surveillance Act (FISA) court was shown insufficient evidence to show that Page was a foreign spy, according to the Wall Street Journal.

The DOJ delivered its conclusion to the FISA court in December filing unsealed on Thursday.

The Justice Department now appears to have concluded that there was “”insufficient predication to establish probable cause” in the last two renewals in 2017. Probable cause is the legal standard to obtain a secret warrant against suspected agents of a foreign power. The letter is classified, but is referenced in a new order declassified by a judge on Thursday. The Justice Department said it would sequester all the material it collected against Mr. Page pending further internal review of the matter. –Wall Street Journal

“The court understands the government to have concluded, in view of the material misstatements and omissions, that the court’s authorizations in (two applications) were not valid,” wrote Judge James Emanuel Boasberg, a federal district judge in Washington who also sits on the FISA court.

As The Federalist notes, this could have far-reaching consequences for special counsel Robert Mueller’s findings.

“The final warrant against Page overlapped with former special counsel Robert Mueller’s investigation of Russian interference in the 2016 election. The final three-month authorization to spy on Page was signed nearly six weeks after Mueller was appointed, meaning that Mueller may have had real-time access to and utilized nearly five months worth of surveillance of Page during the course of Mueller’s investigation. If his office used any of the information in subsequent cases, the declaration that the final two spy warrants against Page were invalid could potentially nullify previous or future convictions sought by Mueller’s office.

Sean Davis

@seanmdav

In a blockbuster ruling, the FISA court declared that least two of the four Carter Page spy warrants were illegal, meaning ANY evidence collected from that surveillance is now invalid.

This could have huge implications for every case brought by Mueller. https://thefederalist.com/2020/01/23/breaking-spy-court-admits-fisa-warrants-against-carter-page-were-not-valid/ 

FISA Court Admits Spy Warrants Against Carter Page Were ‘Not Valid’

The FISA court’s top judge wrote in a secret ruling on January 7 that at least two of the four spy warrants against Carter Page were invalid and not lawfully authorized.

thefederalist.com

Judge Boasberg set a Jan. 28 deadline for the government to show the court what steps they have taken to avoid similar abuses in the future.

END

a)This is a huge story: Laura Ingraham reveals that the New York Times quashed a huge story on a White House meeting with the whistleblower Eric Ciaramella and State official Zentos where  the officials were worried about the optics of the free money Hunter Biden received while Joe Biden was the point man on the Ukraine.  In more disturbing news, the Ukrainian prosecutors were already dealing with the probe on the corruption of Burisma, 3 months prior to phone call…in other  words the whistleblower and the Democrat case against Trump is garbage

( Heine/American Greatness Blog/Laura Ingraham//zerohedge)

 

NYTimes Quashed Story About 2016 WH Meeting With ‘Whistleblower’ & Ukrainians On Burisma: Report

Authored by Debra Heine via American Greatness blog,

In an exclusive report, Wednesday night, Fox News host Laura Ingraham revealed that the New York Times last May quashed a story about a White House meeting in January of 2016 between Obama administration officials – including the so-called whistleblower – and Ukrainian officials that addressed Hunter Biden’s problematic position at Ukrainian natural gas company Burisma Holdings.

Ingraham said she obtained a chain of State Department emails between NYT journalist Ken Vogel and State Department official Kate Schilling centering on the reporter’s request for comment on the story.

Hunter Biden, 49, the scandal-plagued son of Democratic presidential front-runner Joe Biden, is a central figure in the Ukraine scandal due to his high-paid no-show job at Burisma, a position he secured despite having no relevant experience in that field.

Democrats say the president withheld military aid from Ukraine until he could get a guarantee from the Ukrainian President Zelensky that the Bidens would be investigated. However, a document unearthed last October shows that Ukrainian officials had actually opened a new probe into Burisma months before President Trump’s July 2019 phone call with the Ukrainian president.

Some Republicans have called for Hunter Biden to testify in the Senate impeachment trial.

Ken Vogel is the reporter who wrote the oft-cited January 2017 piece in Politico titled: Ukrainian efforts to sabotage Trump backfire. Subtitled: “Kiev officials are scrambling to make amends with the president-elect after quietly working to boost Clinton.”

Media reports referring to Ukraine’s involvement in the 2016 election did not become controversial until Biden announced his candidacy for president in April of 2019. Then, as President Trump’s personal lawyer Rudy Giuliani conducted his very public investigation into the matter throughout 2019, Democrats and their allies in the media started characterizing the claim that Ukraine meddled in the 2016 election as a “conspiracy theory.”

In Vogel’s May 1, 2019 email to Schilling about the Obama White House meeting, the reporter reportedly mentioned the name of the CIA analyst widely believed to be the anti-Trump whistleblower, whose complaint against the president sparked the Democrats’ impeachment efforts.

Ingraham did not reveal his name because Fox News hosts are banned from doing so until the identity is confirmed, but she was likely was referring to Eric Ciaramella, who has been outed in conservative media as the whistleblower.

In the email, Vogel wrote, “We are going to report that (State Department official) Elizabeth Zentos attended a meeting at the White House on 1/19/2016 with Ukrainian prosecutors and embassy officials as well as … [redacted] from the NSC… the subjects discussed included efforts within the United States government to support prosecutions, in Ukraine and the United Kingdom, of Burisma Holdings … and concerns that Hunter Biden’s position with the company could complicate such efforts.”

“The State Department eventually declined to comment,” Ingraham said.

The Fox host noted that the email was forwarded to Schilling’s colleagues Zentos and diplomat George Kent, who has apparently been a source for Vogel in the past.

Kent, the Deputy Assistant Secretary of State for European and Eurasian Affairs, told House investigators last November that he had expressed concerns in 2015 that Hunter Biden’s position with Burisma raised the possibility of a perception of a conflict of interest. He testified that he reported his concern to the Office of the Vice President and nothing came of it.

The names Zentos and Ciaramella also came up during a hearing before the House Natural Resources Committee about Puerto Rico’s debt on Oct. 22, 2019.

Rep. Louie Gohmert (R-TX) asked Natalie Jaresko, Ukraine’s former finance minister, who is currently executive director of the Financial Oversight and Management Board for Puerto Rico, whether she had any knowledge of the pair’s meeting with a Ukrainian official at a DC restaurant in 2016.

Gohmert told the Washington Examiner, “Specifically, I asked about an April 12, 2016, meeting between Ukrainian parliamentarian Olga Bielkova and Liz Zentos and Eric Ciaramella of the National Security Council, in which energy issues were discussed. I thought it was prudent to ask Ms. Jaresko on the record and under oath about this meeting, since the time frame and subject align with the concerning reports of Joe Biden and Hunter Biden’s dealings in Ukraine.”

Bielkova met with Ciaramella and his colleague, Liz Zentos, then the director for Eastern Europe on the National Security Council, on April 12, 2016, at Le Pain Quotidien, on 17th Street N.W., a block from the White House. The same day, Bielkova also met with State Department official Michael Kimmage and, separately, with Kramer of the McCain Institute. Kramer figures prominently in the Trump-Russia saga — he met with Steele in December 2016 at Heathrow Airport to obtain a copy of the British ex-spy’s unverified dossier and provided information from it to over a dozen journalists after the presidential election.

Ingraham said her team was able to corroborate details of the January 2016 meeting mentioned in Vogel’s email by perusing archived Obama White House visitor logs. She reported that the logs confirmed that a number of Ukrainian officials were checked into the White House by the whistleblower [Ciaramella], who was at the time the Ukraine director on the NSC. This was the day Vogel claimed there was a meeting between Obama administration officials and Ukrainians to discuss “the complications of Hunter Bidens sweetheart gig” at Burisma, as Ingraham put it.

Vogel’s explosive story, which would have broken about a week after Joe Biden announced his candidacy, was never published.

Ingraham said she reached out to both the New York Times and Vogel to ask why the story was quashed. She said that Vogel never replied, but the Times’ director of communications simply stated that Vogel’s request for comment was consistent with their news-gathering process.

Heather Champion@winningatmylife

Watch @IngrahamAngle Whistleblower, meetings with Ukrainians and that Ken Vogel story. Using archived Obama visitor logs, they learned the WB checked in numerous Ukrainian officials into the WH.

Embedded video

Heather Champion@winningatmylife

WB checked into Obama WH Ukrainian officials January 19, 2016 – the day Vogel claims there was a meeting on Burisma and Biden.

Why wasn’t the WB concerned with Biden overseeing Ukrainian policy – was it only troubling when Trump tried to get this investigated 🔥🔥

Embedded video

Ingraham’s scoop shows that once again, due to the corporate media’s obsequious desire to assist Democrats, another important story was smothered.

end

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

Justice Department Believes It Lacked Legal Basis for Continued Surveillance of Trump Adviser

Government tells court it lacked probable cause in last two of four eavesdropping applications

    The Justice Department now believes it should have discontinued its secret surveillance of one-time Trump campaign adviser Carter Page far earlier than it did, according to a new court filing unsealed Thursday… it lacked probable cause to continue surveillance of Mr. Page in two of the four surveillance applications it sought against him…

https://www.wsj.com/articles/justice-department-believes-it-lacked-legal-basis-for-continued-surveillance-of-trump-adviser-11579810061

 

Mueller’s Convictions in Question after FISA Court Admits at Least 2 Spy Warrants against Carter Page Were ‘Not Valid’

    Presiding FISA judge James Boasberg wrote in a January 7 order which was not declassified and released until Thursday, that the last two FISA warrants on Carter Page dated April 7, 2017 and June 29, 2017 were not valid.  The June 2017 FISA warrant was signed by former DAG Rod Rosenstein and Former Deputy Director of the FBI Andrew McCabe…

Did Robert Mueller actually use information gathered in real time by the illegal wiretaps on Carter Page? If so, this could pose a huge problem for Mueller’s cases against Trump officials because the wiretaps are now officially invalid…    https://www.thegatewaypundit.com/2020/01/breaking-muellers-convictions-in-question-after-fisa-court-admits-at-least-2-spy-warrants-against-carter-page-were-not-valid/

 

Preliminary ratings show about half the audience that viewed the Kavanaugh Hearings are watching the Trump Trial.  Those that thought the trial would be a 2020 Campaign infomercial are sad.

 

24 hours in, senators flout quaint impeachment rules [Senators are bored, inattentive on 1st day!]

A Democrat in the back row leaned on his right arm, covered his eyes and stayed that way for nearly a half-hour. Some openly snickered when lead prosecutor Adam Schiff said he’d only speak for 10 minutes. And when one of the freshman House prosecutors stood to speak, many of the senator-jurors bolted for the cloak rooms, where their phones are stored…Within the first hour, [Dem] Sen. Mark Warner of Virginia could be seen at his desk in the back row, leaning on his right arm with a hand covering his eyes. He stayed that way for around 20 minutes, then shifted to rest his chin in the same hand, eyes closed, for about five more minutes…  https://apnews.com/326336f2b37f03a521e867db9a41d0f0

 

@ChadPergram: Dem CT Sen Blumenthal on trial: I’ve certainly seen a lot of inattentiveness. And I think my colleagues ought to be ashamed if they’re not paying attention. They’re not doing their constitutional responsibility. I’ve seen doodling and some giggling

 

@1776Stonewall: Rachel Maddow and Chris Hayes tell Senator Feinstein to “resign tomorrow”, after falling asleep during trial [Dem Sen. Diane Feinstein (CA) left an hour early on Wednesday night.]

 

@ABC [House Mgr.] Rep. Hakeem Jeffries: “We hope we can subpoena John Bolton, subpoena Mick Mulvaney. But perhaps we can all agree to subpoena the Baseball Hall of Fame, to try to figure out who, out of 397 individuals, one person, voted against Derek Jeter.” [Impeachment is serious stuff!]

 

GOP Sen. Marsha Blackburn @MarshaBlackburn: Impeachment is about one thing – preventing @realDonaldTrump from winning in 2020.  Putting conditions on foreign aid is nothing new.

Clinton did it. Obama did it.  The Obama Administration strategically withheld foreign aid:

Ukraine – $1B THREATENED TO WITHHOLD; Pakistan – $800M WITHHELD; Colombia – $450M CONDITIONED; Philippines – $433M NOT RENEWED; Egypt – $260M WITHHELD; Honduras – $30M WITHHELD; Mexico – $26M WITHHELD

 

@joelpollak: @SenJoniErnst just made a great point during the Senate break in the Trial: many of the House Democrat impeachment managers voted against lethal military aid to Ukraine, but now want to remove @realDonaldTrump for allegedly not helping our ally fight Russian invasion!

 

@Barnes_Law: Schiff is now playing testimony where the staffers admitted Trump did nothing illegal, but Schiff claims that it is impeachable if the witness merely thought it “inappropriate…

     Schiff trying to pretend he’s pro-Zelensky is really funny, or now pretending he doubted Poroshenko, when it was his buddy Obama, with Hillary allies, who installed Poroshenko in the first place in a coup

Schiff accidentally reveals the weakness of his theories: he must prove that Trump’s actions re: Ukraine could “only benefit him” personally, could not possible benefit anyone else, and could not have any possible good motive or benefit. Not possible to prove.

     Democrats now saying “official foreign policy” cannot be the “policy of one President“! This is another attack on the Constitutional separation of powers that give the power of foreign policy to one man, the President.

On Thursday, Schiff and Nadler argued for articles of impeachment (bribery, corruption and criminal intent) that the House did not approve or even address.  They also invoked Putin and Russia – true story!

 

@ChadPergram: Schiff: I don’t think we really want Vladimir Putin, our adversary to be thanking God for the president of the United States. Because they don’t wish us well.

 

@thebradfordfile: Jerry Nadler is rereading Alexander Hamilton quotes that Adam Schiff already read, because too many senators are still awake.

@MarkSimoneNY: Democrats: A) it is wrong to investigate Joe Biden because he’s running for President. B) We must investigate Donald Trump because he’s running for President.

 

@lawyer4laws: Why do Democrats and Press conveniently forget that 2 Ukrainians were Convicted in a Ukrainian Court for interfering with the 2016 U.S. Election

 

@IngrahamAngle: EXCLUSIVE: Why did the Obama White House host a meeting for Ukrainian officials where the Bidens and Burisma were discussed?Organized by the person many have pegged as the whistleblower no less!   Emails expose what Obama admin knew about Bidens and Burisma  https://video.foxnews.com/v/6125736869001#sp=show-clips

NYT Quashed Story about 2016 WH Meeting with ‘Whistleblower’ and Ukrainians on Burisma

Ingraham said she obtained a chain of State Department emails between NYT journalist Ken Vogel and State Department official Kate Schilling centering on the reporter’s request for comment on the story.

     In Vogel’s May 1, 2019 email to Schilling about the Obama White House meeting, the reporter reportedly mentioned the name of the CIA analyst widely believed to be the anti-Trump whistleblower, whose complaint against the president sparked the Democrats’ impeachment efforts…

     In the email, Vogel wrote, “We are going to report that (State Department official) Elizabeth Zentos attended a meeting at the White House on 1/19/2016 with Ukrainian prosecutors and embassy officials as well as … [redacted] from the NSC … the subjects discussed included efforts within the United State government to support prosecutions, in Ukraine and the United Kingdom, of Burisma Holdings … and concerns that Hunter Biden’s position with the company could complicate such efforts.”…

https://amgreatness.com/2020/01/23/nyt-quashed-story-about-2016-wh-meeting-with-whistleblower-and-ukrainians-on-burisma/#.XinvNxkO4tY.twitter

Rudy Giuliani threatens to go public with Biden corruption allegations

“The Biden Family Enterprise made millions by selling public office. Then when Joe was Obama’s Point Man, they ALL made millions.”…   https://nypost.com/2020/01/23/rudy-giuliani-threatens-to-go-public-with-biden-corruption-allegations/

 

@RudyGiuliani: The key to solving large and complex corruption cases is to follow the money. Everywhere Biden, Obama’s Point Man, went, the Biden Family Enterprise made millions. Yes millions!

 

James Biden’s Firm Got $1.5 Billion in Government Contracts despite Zero Experience

In 2010, shortly after a disastrous attempt at running a hedge fund with his nephew Hunter, James Biden entered the construction and international development industry. Even though he lacked background in either, James secured a position as executive vice president at the newly formed HillStone International …Of particular interest to the company were the millions being given to government contractors for the rebuilding of war-torn Iraq—an endeavor Joe Biden was tasked to oversee by President Barack Obama…  https://www.breitbart.com/2020-election/2020/01/21/book-bombshell-james-bidens-firm-got-1-5-billion-in-government-contracts-despite-zero-experience/

Joe Bidenin Iowa: DACA recipients are “more American than most Americans are because they have done well in school…”  https://twitter.com/Breaking911/status/1220474172398362625

Sen. Grassley Demands Answers from Pentagon on FBI Spy Stefan Halper’s Questionable Defense Contracts – Known by its acronym ONA, the secretive office is run by Director James Baker, who has been in the role since being appointed by the Obama Administration in 2015…

    Halper garnered numerous contracts from the ONA totaling more than $1 million and many which coincide with the same timeline he was reporting on Trump aids to the FBI…

    Grassley’s investigation, however, reveals that “reviews of Halper’s research proposals prompted criticism of the quality and necessity of his work product. Other contracts show that Halper listed a Russian intelligence official as a consultant for an ONA project.”…

https://saraacarter.com/sen-grassley-demands-answers-from-pentagon-on-fbi-spy-stefan-halpers-questionable-defense-contracts/

More Than 120 Members of Congress Issue Letters of Support to Leading Anti-Israel Group

Congressional support for CAIR likely to generate concern in pro-Israel community

https://freebeacon.com/issues/more-than-120-members-of-congress-issue-letters-of-support-to-leading-anti-israel-group/

 

@nytimes: Reducing your meat and dairy intake can help mitigate climate change.

Babylon Bee: Being Outraged By Stupid Nonsense Replaces Baseball as National Pastime

end

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

(Greg Hunter)

Sham Impeachment Dud, Dem Election Panic, Economic Warning Signs

By Greg Hunter On January 24, 2020

Why the Dems thought the sham impeachment was going to do better in the GOP controlled Senate, I’ll never know. It was a disaster in the House where Democrats had total unfair control, and it is an even bigger disaster in the Senate where Mitch McConnell and the Republicans are running the show. The House case on President Trump is so weak and fraudulent that it is doubtful even the staunchest Trump hating RINOs will vote in favor of removal.

Why are the Democrats pushing this sham impeachment that is basically a fraud on the Constitution? The Dems are panicked that their kickbacks, bribes and corruption will be exposed in a second Trump term. The Democrats do not have a serious candidate and do not have a serious plan to help make the lives of the ordinary person better. All they have is gun control, higher taxes for everyone and illegal immigration and free stuff given away to non- citizens who they want to vote illegally. The Trump wall is being built. So, the massive flood-the-zone with illegal voters strategy is sinking fast, too. Looks like the Dems will have to resort to total election and voter fraud to try to win. These are all the reasons the Dems are panicked and afraid of prosecution and jail for their crimes, sedition and even treason if Trump wins again.

The Fed continues to signal a huge warning sign the economy is in trouble. It has taken over the repo market, which gives short term funding for banks. Tens of billions of dollars are being injected into the global financial system on a nightly basis. If the Fed stops this, does the system implode?

Join Greg Hunter of USAWatchdog.com as he talks about these stories and more in the Weekly News Wrap-Up.

-END-

 

Well that is all for today

I will see you MONDAY night.

 

 

One comment

  1. Hans Pronk · · Reply

    Hello Harvey,
    Your daily blog is very much appreciated by me and many others. Thank you for all you have done.
    I agree with you that the COMEX seems to be a big fraud and not transparent. So we have to make guesses. My guess is the following for what is happening to the gold deliveries:
    1. The bullion banks take delivery and keep the gold in the Dealers Inventory (registered gold) because they are short.
    2. Others take delivery because they have the intention to go short. So they also keep the gold in the Dealers Inventory.
    3. Some people take delivery because they want to have the gold in their possession: the withdrawals. A marginal group if we believe the data supplied by COMEX.
    4. The last group takes delivery but they have no intention to sell the gold in the foreseeable future. For some reason, they keep the gold in the Dealers Inventory. So it is not available for deliveries. This group is probably going bigger and bigger.
    My conclusion: Not all the gold in the Dealers Inventory is available for deliveries.
    Will it result in a commercial failure? I agree with you that we seem to be close to it.
    Hans Pronk

    Like

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